RETROSPECTIVE VETERAN RETAILER DICK SPEZZANO WEIGHS-IN ON NEARLY 60-YEAR PRODUCE CAREER

BY CAROL BAREUTHER, RD

etailers were losing money due to the way of grapes, and what they did have beets and turnips mainly in the upscale or checker inaccuracies when Dick was seeded, which wasn’t what our customers university stores. R Spezzano chaired the Produce Mar- wanted. Pineapple, from Hawaii, was the white The big deal with PLU codes is that before keting Association’s (PMA) Produce Electronic variety. We sold four times more when the gold this era, we could lose up to $1 or more Identification Board nearly 30 years ago. The variety came out. Fresh-cut meant coleslaw per pound on organics since they looked the creation of UPCs, PLUs and case coding for and chop suey. There wasn’t the technology same as their conventional counterparts to the fresh floral and produce industry solved to extend shelf life. Three days was tops. The the front-end checkers. this problem. cold chain wasn’t what it is today. We had an Spezzano, then vice president of produce open dock were the temperature could get as How would you characterize the overall and floral at , which at the time was a high as 75 degrees Fahrenheit. Yet, you didn’t environment 30 years ago? 69-store chain headquartered in Arcadia, really hear of food safety problems. It was very competitive in Southern Cali- CA, brought an abundance of experience and Organics were primarily sold in 10,000- fornia. Most were privately held expertise to the post. After all, it had been square-foot health-food stores with 25 SKUs and family-owned. We had about 20 chains almost 30 years before this, in 1958, when of fruits and vegetables — maybe 45 during in our area, each with anywhere from 20 to he started his retail career working part-time peak season. It wasn’t until the 90s that we 50 stores. Only three had more than this. for Star Markets on the East Coast. Five years put Pavich organic grapes in all of our stores We were one of them. The other two were later, he moved to Southern where as a second variety to conventional. After and . Price Club, which he held positions from produce manager, that, we started to add items such as carrots, became , was just starting in San assistant store manager, area field merchan- Diego. I remember going for a visit. It looked diser and produce buyer before being named like a store specializing in all electronics and vice president. televisions. Then, they told me that what went In 1997, he founded Spezzano Consulting out through the registers was 50 percent Service, of which he is now president. Spez- food and 50 percent non-food. Today, I think zano spent countless hours giving back to food represents about 65 percent or more of the industry by volunteering for organiza- sales and produce SKUs average only around tions such as the Fresh Produce and Floral 90 to 100. Council of California, United Fresh and PMA. He was recognized by PMA as the When did things start to change, and 2014 Robert L. Carey Leadership Award what were the drivers of change? winner. It was late 80s/early 90s when fresh- cuts started to come on the scene. Ready Where were you in 1985? Pac Foods started with just a couple of I was at Vons in . items, a mix of European and American greens in pillow packs. They were spectac- What was the produce department like ular looking, but expensive. We put them in in 1985? our stores, and it was an immediate hit. It SKUs were about 150. It was relatively was about that time that we saw innovation seasonal back then, with short seasons, on the variety side. Howard Marguleas, even in our area. Chile was just emerging founder of [Bakersfield, CA-based] Sun with grapes and tree fruit. There were no World International, was working apples or avocados yet out of with breeders to create seed- South America. Mexico less watermelon and didn’t have much in seedless grapes.

Dick Spezzano

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Retrospective DS.indd 1 11/16/15 11:17 AM Driscoll’s developed its own varieties of straw- suppliers. A good retail partner should be berries, as well as using those developed at forgiving when weather events occur, because universities. At the same time, supermarkets leading-edge vendors will reward you for your went from 25,000 to 60,000 and 75,000 loyalty by coming to you first with their newest square feet before settling on an ideal space varieties and latest ideas. averaging 50,000. That’s when category management migrated from center store to What do you think will drive the produce produce enabling us to manage margins and industry in the next 10 to 20 years? profits. I think it will be the new consumer. Produce is important to Millennials. This age group is What are some of the biggest innovations better educated, and they have greater access you’ve seen in the produce industry during the to the Internet to make informed purchase past 30 years? decisions. The produce industry needs to Sustainability. The price of oil increased adjust to this new consumer with smaller in the late 90s and 2000s, and that factor stores, online shopping, as well as pick-up raised prices for farming. Our industry has and delivery options. My granddaughter is in been good about cutting down on water; for with SKUs approaching 600 to 700. Many new college, and she shops AmazonFresh for all example, some growers invested in solar. We items are packaged, which lend themselves her produce. She tells me they deliver what could do more with solar. We haven’t done better to today’s shelving systems rather than she wants, it’s good quality, and fairly priced. much with wind yet. bulk produce. What are the challenges holding the in- How would you describe the produce de- What do you think was the greatest lessons dustry back? partment today? you learned during the past 30 years, both as There are pressures on margins that make There’s been a significant increase in linear a retailer and as a consultant? it hard for the supply side to develop new prod- footage today, four times what it was in 1995, I learned how to be a better partner with ucts. Except for products like Pom Wonderful and Cuties, for example, you don’t see a lot of TV advertising for produce. Even Dole and Del Monte are pressed on margins.

What are your thoughts on choosing pro- duce as a career today? I’ve enjoyed mentoring college sophomores and juniors at PMA’s Fresh Summit as part of the Pack Family Career Pathways Program. What these students are most surprised at is that produce company chief executives are on the floor selling. Sure, the students could go to work for a big company like ConAgra Foods, and likely make more money than in produce, but I tell them they won’t be as happy. It’s harder to get to the top in big companies because of all the layers. In the produce industry, it’s easier to move up — especially if you work hard. I remind my students to always follow up with emails to executives they meet at shows.

What advice would you give young retailers entering the produce industry? Get as much education as you can. Then, be sure to aim for opportunities that will put you in hands-on positions at retail. To be successful, you’ll need to be able to crunch the numbers from your college education and have intuition from store-level, hands-on experience with customers. Never stop being a student of the business from farm to retail. pb

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