WWW.PRODUCEBUSINESS.COM APRIL 2016 • VOL. 32 • NO. 04 $9.90 APRIL 2016 FOODSERVICE ISSUE
FOODSERVICE SUPPLEMENT
AT RETAIL WENDY’S CASE STUDY JEFF SHILLING RETROSPECTIVE
INSIDE
WHAT TO EXPECT FROM SHIFT IN UK FOODSERVICE AND HOME DELIVERY
BALLS FOOD STORES • MORE MATTERS • GUACAMOLE • PALLETS CANADIAN RETAIL • SOUTHERN FRUIT SUPPLIES • SPRING GRAPES FRESH-CUT PACKAGING • ‘SPORTS NUTS’ • AUSTRALIAN/NEW ZEALAND FRUIT TOMATOES • SWEET ONIONS • MELONS • ASPARAGUS • MUSHROOMS REGIONAL PROFILES: TORONTO AND DALLAS EXCLUSIVE: BELGIUM PRODUCE PROSPECTS Dole.indd 1 3/23/16 2:56 PM APRIL 2016 • VOL. 32 • NO. 04 • $9.90
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58 features SPRING GRAPE PRIMER 40 4 SALES STRATEGIES cover story MORE MATTERS PROGRESS REPORT Category prots on the move as 32FOODSERVICE AT RETAIL Industry coalition continues to move new varieties attract more consumers. Convenience and culinary the needle in the produce department. creativity elevate the bottomline. 64IDENTIFYING THE ADVANTAGES OF 42THE CONTINUED SPREAD AUSTRALIAN/NEW ZEALAND FRUIT OF GUACAMOLE Understanding the variety and innovation in Positioned to take the crown as king Australia and New Zealand fruit provides a base of dips and condiments in produce. for successful merchandising and promotion. commentary 48 67 16 THE FRUITS OF THOUGHT CANADIAN RETAILERS SHARE PROFITS FROM PALLETS Belgium In Our oughts 6 INSIGHTS TO INCREASE SALES Economy and sustainability come From promoting consumption with together in optimum systems. 121 RETAIL PERSPECTIVE marketing to generating excitement in store, Managing e Spring ‘Gap’ these 6 retailers share their success stories. 88EXCLUSIVE FIRST HAND ACCOUNT: 122 WHOLESALE MARKET 54 BURGEONING PROSPECTS IN BELGIUM Keeping Your Cash In A Good Flow SOUTHERN FRUIT SUPPLIES P B is invited for an From Carolina peaches to Georgia exclusive produce tour hosted by VLAM, 124 EUROPEAN MARKET blueberries, e South diversies. Flanders Agricultural Marketing Board What US Fruit Exporters Need To Know About e UK Market
126 PRODUCE ON THE MENU Transforming Your Foodservice At Retail Operation From Average To Awesome
128 VOICE OF THE INDUSTRY Disruptions In e Supermarket Business Model 54 64 Change Service requested: POSTMASTER: Send address changes to PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425. PRODUCE BUSINESS (ISSN 0886-5663) is published monthly for $58.40 per year by Phoenix Media Network, Inc., P.O. Box 810425, Boca Raton, FL 33481-0425
PRODUCE BUSINESS /APRIL 2016 / 3
TOC.indd 1 3/25/16 8:44 AM 70 81 APRIL 2016 • VOL. 32 • NO. 04 • $9.90 TORONTO RETAIL PROFILE: REGIONAL MARKET PROFILE: The Big Carrot The Unified Prize Of Produce Taking a hybrid health and Wholesalers Make a Living nutrition concept to the next level. special features at Selling Something Healthful 20 83 FROM THE PAGES OF 78 DALLAS PRODUCEBUSINESSUK.COM FOODSERVICE OVERVIEW: REGIONAL MARKET PROFILE: What to Expect from Changing In Toronto’s Foodservice Sector, Dalllas Produce Scene Times in the UK Foodservice Produce Gets Much Play Despite the recent loss of its terminal market, and Home Delivery Environment Produce-centric dining concepts the big D’s produce industry continues to thrive. nd a niche in Ontario’s capital. 24 85 RETROSPECTIVE 79 FOODSERVICE PROFILE: Je Shilling, Vice President Procurement for FOODSERVICE PROFILE: Spiral Diner and Bakery FreshPro Food Distributors, Reminisces About Thoroughbred e vegan diner bucking produce His Early Days in Produce and Shares Advice Showcasing Vegetable Cookery trends in every way. for Future Generations of a Certain Pedigree 86 28 80 RETAIL PROFILE: ASCENDENT INDEPENDENTS: RETAIL OVERVIEW: Terry’s Supermarket BALLS FOOD STORES Produce Retailing For Embracing Produce Ethnicity e three-format retailer serves a diverse Toronto’s Ethnic Diversity customer base using its authentic heritage. Each demographic pocket requires a dierent taste.
departments in this issue MERCHANDISING REVIEW FOODSERVICE MARKETING 6 QUIZ 90 MAXIMIZING TOMATO 112 MAKING A MUSHROOM BOOM SALES WITH PURPOSE North American growers partner with 8 WASHINGTON GRAPEVINE Understanding key drivers behind the chefs to expand varieties on menus. proliferation of the tomato category 10 PRODUCE WATCH increases sales by targeting merchandising FRESHCUT MARKETING and marketing to meet consumer needs. 116 VALUEADDED PACKAGING: 14 FORWARD THINKING TRENDING IN THE RIGHT 98 HITTING THE SWEET SPOT DIRECTION 18 RESEARCH PERSPECTIVES Proper merchandising keeps e category continues to be one sweet onions selling year-round. of the most important and innovative 19 COMMENTS AND ANALYSIS in the growth of produce sales. 106 MELON MERCHANDISING 129 INFORMATION SHOWCASE FOR YEARROUND APPEAL DRIED FRUITS & NUTS anks to the increasing quality 119 APPEALING TO ‘SPORTS NUTS’ 130 BLAST FROM THE PAST grown overseas, this fruit oers Take them to the ball game or take avorful options for consumers. them home, dried fruits and nuts are healthy options for sports fans. 109 ASPARAGUS TRANSCENDS SEASONALITY CORRECTIONS Seasonality shouldn’t deter creative In the March 2016 issue of P B¡¢, in the Hydroponics article on page 51, the shipping process for BrightFarms’ inventory to Giant was incorrectly reported. BrightFarms is only shipping to marketing and merchandising tactics. Ahold’s stores (Giant Food, Martin’s and Peapod) from its Northern Virginia-based BrightFarms Capitol Greenhouse. No produce from the greenhouse in Yardley, PA, will be shipped to Ahold. In the March 2016 issue of P B¡¢, on page 41, Jami Kinney was incorrectly identied. Her title with the National Mango Board is marketing specialist.
Change Service requested: POSTMASTER: Send address changes to PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425. PRODUCE BUSINESS (ISSN 0886-5663) is published monthly for $58.40 per year by Phoenix Media Network, Inc., P.O. Box 810425, Boca Raton, FL 33481-0425
4 / APRIL 2016 / PRODUCE BUSINESS
TOC.indd 2 3/24/16 6:41 PM CA Avocado.indd 1 3/16/16 3:43 PM produce quiz THIS MONTH’S WINNER CHAD PUSCHEL Special Projects Manager Sunny Valley International, Inc. Glassboro, NJ APRIL 2016 • VOL. 32 • NO. 04 • $9.90 P.O. Box 810425 • Boca Raton • FL 33481-0425 Phone: 561-994-1118 • Fax: 561-994-1610 [email protected] As special projects manager with Sunny win-win for everyone involved,” says Puschel. PRESIDENT & EDITOR-IN-CHIEF James E. Prevor Valley International, Chad Puschel enjoys the Entering the produce world in 2013, [email protected]
“pleasure of working daily to promote and Puschel wasted no time making an impres- PUBLISHER/EDITORIAL DIRECTOR market the peaches and blueberries grown sion as a newcomer. In 2014, he wrote a grant Ken Whitacre by the Jersey Fruit Cooperative to a nation- for sustainable training. “My motivation for [email protected] wide audience through our newest company, writing the grant … came within my first year VP EDITORIAL Ellen Koteff Farmhouse Fruit.” working in the industry, the more I learned [email protected]
Farmhouse Fruit was started to promote a about the impact unsustainable agriculture SPECIAL PROJECTS EDITOR successful fundraising program that allowed has on the environment, the more I wanted Mira Slott local New Jersey nonprofits a chance to to help,” says Puschel. “Education is the first [email protected] raise a substantial amount of money while logical step when it comes to altering our own INTEGRATED CONTENT EDITOR Michele Sotallaro supporting the family farms. “It truly is a practices to be more sustainable.” [email protected]
PRODUCTION DIRECTOR How To Win! To win the PRODUCE BUSINESS Quiz, the first thing you have to do is enter. The rules are Diana Levine simple: Read through the articles and advertisements in this issue to find the answers. Fill in the [email protected] blanks corresponding to the questions below, and either cut along the dotted line or photocopy PRODUCTION LEADER the page, and send your answers along with a business card or company letterhead to the address Jackie Tucker listed on the coupon. The winner will be chosen by drawing from the responses received before the publication of our June issue of PRODUCE BUSINESS. The winner must agree to submit a color photo to PRODUCTION DEPARTMENT be published in that issue. Sunshine Gorman Freddy Pulido Christopher Sizemore
WIN A GRILL AND CAMP STOVE COMBO EVENT COORDINATOR Gear up for taking advantage of the refreshing spring and Jackie LoMonte summer weather with this grill set. The combo is complete with [email protected] a stove burner and a non-stick aluminum grill and griddle. This CONTRIBUTING WRITERS Chris Auman, Carol Bareuther, Linda Brockman, compact device features a stainless steel drip tray, a lid that Mindy Hermann, Bob Johnson, John Lehndorff, attaches to the foldable sides to create a windscreen — protecting Janel Leitner, Sophia McDonald, Jodean Robbins, Lisa White your flame — matchless ignition, and heat-control dials. The ADVERTISING carry bag and an adapter for a 1-pound propane cylinder are Eric Nieman, Associate Publisher also included. The total unit weighs about 16 pounds. [email protected] Linda Bloomfield Linda.Bloomfi[email protected] QUESTIONS FOR THE APRIL ISSUE Steve Jacobs [email protected] 1) What kind of cherry variety is advertised on the ad for e Flavor Tree Fruit Company? ____ Sandy Lee [email protected] ______Kelsee Loche 2) What is the email address for Mann Packing’s Culinary Cuts? [email protected] Ellen Rosenthal [email protected] 3) How many bagged products are shown on the Veg-Pak Harvest Fresh ad? ______FLORAL DEPARTMENT MARKETING ______E. Shaunn Alderman [email protected] 4) What is John Shuman holding in his picture shown in the ad for Real Sweet Vidalia Onions? ____ Send insertion orders, payments, press releases, photos, letters to the editor, etc., to ______Produce Business, P.O. Box 810425 Boca Raton, FL 33481-0425 5) What is the 800 telephone number for LGS Specialty Sales? ______PH: 561.994.1118 FAX: 561.994.1610 Produce Business is published by Phoenix Media ______Network, Inc. James E. Prevor, Chairman of the Board P.O. Box 810425, Boca Raton, FL 33481-0425. 6) What brand of tabasco sauce is used in Avocados from Mexico’s Picadillo Stued Avocado recipe? Entire contents © Copyright 2016 Phoenix Media Network, Inc. All rights reserved. ______Printed in the U.S.A. Publication Agreement No. 40047928 This issue was: o Personally addressed to me o Addressed to someone else Name______Position______Company______Address______City______State______Zip______Phone______Email______Photocopies of this form are acceptable. Please send answers to: APRIL QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425
6 / APRIL 2016 / PRODUCE BUSINESS
Quiz.indd 1 3/24/16 6:11 PM Wonderful Company.indd 1 3/17/16 11:22 AM Realistic Change For Immigration Policies To Work
BY JULIE MANES, DIRECTOR OF GOVERNMENT RELATIONS, UNITED FRESH PRODUCE ASSOCIATION
ew issues are as much of an endur- For much of the recent past, the for those workers who commute daily from ing challenge to fresh produce pro- consensus among produce growers has their homes in Mexico; directing funding viders as securing an experienced, been that the immigration system as a toward further training for agriculture dedicated labor force. Anyone in whole needed broad, comprehensive workers; improving the data collection the fresh produce industry will tell reform. Sadly, the current political climate process the Department of Labor uses for Fyou that finding workers who are efficient, makes having a reasonable, rational discus- determining wages for agriculture guest- skilled and willing to endure tough working sion of how to improve our immigration workers and permitting the use of a single conditions is a never-ending battle. And system to meet America’s needs virtually application with staggered dates-of-need let’s be honest, despite efforts too numer- impossible; and let’s face it, that dynamic for employers who need workers to arrive ous to count, fruit and vegetable growers does not look likely to change any time at different points of a harvest season. found time and again that Americans sim- soon. Because Congress is highly unlikely to ply will not do the jobs needed to bring As that realization sinks in, more people move any stand-alone immigration-related crops from the fields to consumers. And yet, in the fresh produce industry are turning legislation this year, it is crucial to look at Americans want and need the nutritional to the H-2A program to try and meet their other legislative vehicles that are likely to benefits and variety that a diet rich in fruits labor needs. Use of the H-2A program has see action. Being an election year, with and vegetables brings. So growers have no more than doubled in the past five years; its effect on the congressional calendar choice but to turn to foreign-born workers California, the nation’s leading fruit and and the heightened political sensitivities to fill the jobs of harvesting fresh produce. vegetable producing state, is on track to it brings, further narrows the opportunities You’d have to be living under a rock to not double its H-2A participation in the next for legislative activity. know that government policies pertaining two years. At the moment, the best prospect for to allowing foreigners to come into the But haven’t we in the produce industry action is the annual appropriations process United States for a variety of reasons are been saying that the current program which determines how much each function some of the most controversial and misun- doesn’t work like it should? Yes, we have. of the government has to spend to carry derstood out there. The result of the collision of real-life policy out its mission. While the appropriations Yet, at the same time, there is broad needs and political realities is a determi- process focuses on dollars-and-cents deci- consensus that our nation’s immigration nation that while we don’t give up on our sions, it also reflects the policy priorities policies are broken, including the poli- over-arching goal of comprehensive reform, of each part of the federal government. cies and program that bring foreign-born we must pursue politically feasible changes With the appropriations process set to workers to the United States to work in that can make the current system work largely wrap up by mid-summer, United agriculture. The current program, known more effectively than it does. Fresh will be working closely with our allies as H-2A, has been useful for many produce United Fresh is partnering with industry in the coming weeks to educate policy- growers, but too many times it has been allies to press for changes that will make makers about the importance of taking inefficient and ineffective, frequently the program work more efficiently, helping what actions they can to make the current providing workers too late to harvest highly produce providers get and retain skilled system work the best it possibly can. To time-sensitive crops, or imposes mandates workers and cut through redundant bureau- reiterate, these proposals are NOT intended on growers that make it nearly impossible cratic requirements. More specifically, the to take the place of comprehensive reform, for them to use the program. On top of changes that are being sought include: but are meant to ease the burdens produce these factors, the H-2A program has too easing requirements on produce providers providers currently face. The effort to make often been subject to processing delays for housing for foreign-born workers who our country’s immigration system truly because of capacity and infrastructure. are already living in the United States and work will continue.
8 / APRIL 2016 / PRODUCE BUSINESS Flavor Tree.indd 1 3/22/16 5:16 PM produce watch
TRANSITIONS TRANSITIONS ANNOUCEMENT GREEN GIANT JOHN VENA, INC. NATIONAL POTATO PROMOTION SALINAS, CA PHILADELPHIA BOARD UPDATES ITS NAME, Green Giant Fresh announces John Vena, Inc. announces the MISSION, STRATEGIC PLAN promotions in key roles. addition of three new roles Director of information tech- during a period of company- nology, William Cheung, was wide growth and expansion. promoted to vice president William Burr, a veteran of the information technology. retail and wholesale produce During William’s 12-year industries, joins the team tenure, his accomplishments as outside sales represen- have been many, and his value tative, executing strategic business development immeasurable. initiatives as the company expands its footprint in Board members of the National Potato Promotion the region. Board (Colorado Springs, CO) approved a new name Jennifer Fancher was for its agricultural promotion group. During the promoted from director of In operations, David Milakeve board’s 44th annual meeting, they voted to change marketing to vice president takes on the role of director its dba (doing business as — business name) from marketing. During Fancher’s of production, overseeing the United States Potato Board, U.S. Potato Board, nearly five-year tenure, she management of John Vena, or USPB, to Potatoes USA. This update comes on the developed the company’s Inc.’s packing and grading heels of the organization’s newly created mission first supplier-funded facilities. and strategic plan, which were also approved. The Category Management new strategic plan for Potatoes USA includes the Program, which continues collective input of more than 450 members of the to grow and offer bene- United States potato industry, Potatoes USA staff fits and support to both the internal sales and and the board’s agency representatives from around marketing teams, as well as retail customers. Kelsey Rose, a recent graduate the world. of Saint Joseph’s University’s In addition to these recent Food Marketing program, also appointments, assistant joins the sales team as a cus- ANNOUNCEMENT category manager Myles tomer service representative. Echenique was promoted to category manager. After TRANSITION interning for the company in 2010 and TrueTrac in 2011, PRO*ACT Myles joined the team as a MONTEREY, CA full-time employee in 2014. PRO*ACT, the produce Of his many tasks, Myles is supply-chain manage- responsible for myriad reports, category reviews ment company, added the and analysis of trends, which provide insight to title of chief executive to customers, staff, and suppliers alike. Max Yeater’s position as president. In addition to PALMELITAS INTRODUCES A TRANSITIONS guiding the day-to-day activity of the company, UNIQUE POUCH PACKAGING MARKET FRESH PRODUCE Yeater is responsible for the Pasco Foods, Ltd, (Spicewood, TX) and its subsidiary NIXA, MO strategic planning necessary to set the direction Palmelitas, introduces the next generation of Market Fresh Produce for PRO*ACT’s continued growth and sustainable packaging for Hearts of Palm. The company’s new announces the addition success into the future. He has been with the state-of-the-art packaging keeps the Hearts of Palm of Lori Shaklee. She is organization for 22 of its 25 years. fresh and natural without using a brine solution. the director of human Palmelitas is proudly presented by Pasco Foods, resources and based out of LTD. Pasco Foods, LTD is the parent company of the Market Fresh corporate ANNOUNCEMENT Palmelitas, Pasco Onion and Costa De Oro. Pasco office in Nixa, MO. Her KROGER’S THE LITTLE CLINIC Foods, LTD distributes its products to supermarkets, responsibilities will wholesale clubs, industrial customers and direct include, but are not ADDS DIETITIANS TO CARE MODEL to consumers. limited to, managing Kroger’s (Cincinnati) The Little Clinic retail health clinic adds registered dietitian nutritionists (RDNs), the hiring process, ANNOUNCEMENT providing services such as nutrition counseling, policies and pro- STATE GARDEN ADDS BABY BUTTER cedures along with to its scope of services. The Little Clinic selected monitoring company reviews and benefit packages. Eileen Myers, formerly vice president of affiliations LETTUCE TO OLIVIA’S ORGANICS LINE Shaklee will report to Jordan Jackson, senior direc- and patient-centered strategies for The Little Clinic, State Garden Inc., a tor of finance and human resources. to lead this initiative being piloted in four commu- Chelsea, MA-based nities where the company currently operates retail supplier of organic and Market Fresh Produce hires Betina clinics: Nashville, TN; Columbus, OH; Cincinnati and conventional tender Morelock as part of the account- Denver. leaf greens, spinach ing staff at the corporate office. and celery, adds a new Morelock brings 10 years of baby lettuce variety accounting and bookkeeping to its 5-ounce organic experience. She will report to line. Olivia’s Organics Laura Knese, director of fi- Baby Butter lettuce is nance. She has experience currently on shelves. with companies such as Olivia’s Organics Metropolitan National Baby Butter Lettuce Bank, Citizens Bank, is non-GMO verified and more along with and is washed, packed and sold fresh a bachelor’s degree daily. It’s available by a 6-, 8-, or 12-pack case. in accounting.
Produce & Floral Watch are regular features of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a high resolution image to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]
10 / APRIL 2016 / PRODUCE BUSINESS Dulcinea.indd 1 3/16/16 3:46 PM produce watch
ANNOUNCEMENT ANNOUNCEMENT ANNOUNCEMENT MANN PACKING ADDS READY PAC FOODS BRINGS NEW TO CULINARY CUTS LINE FLAVOR COMBINATION TO COMPLETE Mann Packing, Salinas, CA, announces the addition SALAD KITS of three new and innovative products to their Irwindale, CA-based Ready award-winning Mann’s Culinary Cuts line of fresh- Pac Foods Inc. launches cut vegetables. Shaved Brussels Sprouts, Cauliettes a Spicy Sriracha Ranch and Broccoli Clovers will join Sweet Potato Ribbons Chopped Salad Kit. and Butternut Squash Zig Zags in the line. The full Blending spicy Sriracha line, along with recipes, photos and videos can be sauce with cool ranch viewed at culinarycutsclub.com. The veggies are flavors and a fresh washed and ready-to-eat and versatile enough for mix of healthy greens multiple uses such as side dishes, stir-fry’s, appe- and vegetables, this NATURAL DELIGHTS MEDJOOL DATES tizers, desserts and casseroles. These convenient salad kit delivers on vegetables are uniquely cut and are all natural, consumers’ demand LAUNCHES YEAR-LONG NATIONAL preservative-free and gluten-free. Each package for bold, restaurant-in- CONSUMER PROMOTIONS contains four to five, 1-cup servings and can be spired flavors with the Natural Delights Medjool Dates, the Yuma, AZ-based prepared in four minutes or less in the microwave, at-home convenience Medjool date brand, continues to drive consumer sautéed, steamed or on the stovetop. of a ready-to-mix and serve salad. Ranch dressing demand and support in-store performance with the is paired with Sriracha sauce. The kit features this launch of a new promotion called “Your Date with blend of flavors along with crunchy mini Chow Mein Fitness.” The promotion gives consumers a chance strips and savory bacon crumbles. The salad blend to win a FitBit Charge HR fitness tracker and Natural includes chopped Romaine lettuce, green cabbage, Delights Medjool Dates. This campaign is the first in celery, sweet carrots, red cabbage and broccoli. a year-long series of demand-generating activities that will deliver more than 150 million impressions ANNOUNCEMENT to health-minded consumers through a national consumer advertising campaign that spans digital, PROCACCI BROTHERS mobile and social media channels. ANNOUNCEMENT RECOGNIZED FOR CONTRIBUTIONS STEMILT’S LIL SNAPPERS PROMOTION TO INTERNSHIP PROGRAM ANNOUNCEMENT Procacci Brothers Sales Corporation (Philadelphia) HELPS RETAILERS THANK TEACHERS and its affiliated growing operations, Ag-Mart Stemilt (Wenatchee, WA) launches a new promotion Produce Inc. and Gargiulo Inc., recently received around its award-winning Lil Snappers kid-sized special recognition from the National Migrant & fruit program aimed to help retailers thank Seasonal Head Start Association (NMSHSA) for the teachers and serve up healthy snacks in schools company’s continued support of the NMSHSA’s during Teacher Appreciation Week in May. Stemilt Summer Internship Program. The presentation will donate cases of kid-sized fruit to each retail was made at the NMSHSA’s biannual conference in chain that runs a Lil Snappers apple promotion Tysons Corner, VA. The NMSHSA internship program between May 1 to brings together high-achieving former Migrant & 7. Stemilt plans to Seasonal Head Start students that are currently assist retailers in enrolled in college. getting the word out about the school NEWSTAR’S FRESH donations to their PICKME HERB SLEEVES local community. NewStar Fresh Foods’ (Salinas, CA) new line of The company can branded fresh herb packaging is now distributed provide social media to retailers nationwide. Launched at the Produce posts for retailers Marketing Association’s Fresh Summit last October, to use on their the “Pick Me” brand was developed to solve social channels, common issues at retail with fresh herbs. NewStar’s and also distribute approach brings a bunch of benefits including a press release in enhanced food safety, consumer education, the market area of improved accuracy at the register and merchan- participating retailers. The promotion is designed dising efficiency. Each sleeve prominently identifies to help retailers put the spotlight on educators in Pictured left to right: Cleo Rodriguez Jr., executive director the herb by name, and presents a flavor profile and their community in honor of National Teacher Day of the NMSHSA board; Lou Struble, corporate director, commu- usage suggestions on either side. The UPC code on on May 3. nications and social responsibility; John Menditto, president of East Coast Migrant Head Start Project; William Castellanos, each sleeve reduces SKU confusion and improves chairman of the NMSHSA board accurate ring at the register. ANNOUNCEMENT ANNOUNCEMENT ROBINSON FRESH PROMOTES MELISSA’S COTTON CANDY GRAPES ORGANIC FARMING WITH Melissa’s/World Variety Produce (Los Angeles) launches its Cotton TOMORROW’S ORGANICS Candy Grapes packaged in a convenient, 1-pound clamshell. As The Robinson Fresh (Monterey, CA) organics brand, the name implies, this grape offers distinctive flavor tasting like Tomorrow’s Organics, commits to a three-year cotton candy. Developed by breeding wild agreement with Sustainable Harvest International to grape species in California for more than help promote organic farming among family growers eight years, the Cotton Candy Grape is not in Central America. Tomorrow’s Organics will help a genetically engineered product. It is the fund these efforts through an annual donation result of industry pioneers hand-pollinating supported by carton sales of their organic produce. different grapes for many seasons. The seed- Sustainable Harvest International connects with less, green to light-yellow grapes burst with families to implement sustainable, organic farming techniques to eliminate the need a cotton candy flavor that then recedes to a for slash-and-burn farming and to improve families’ well-being. mild, juicy sweetness.
Produce & Floral Watch are regular features of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a high resolution image to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]
12 / APRIL 2016 / PRODUCE BUSINESS nternational trade of produce is fraught with anxiety. Your most precious perishable commodities are not only subject to the Iwhims of weather but to changes in shipping schedules, storage temperature, ruthless inspections, currency risk, government intervention and a list of other hurdles that must be overcome to get the product to market. At Lehman & Troost, we understand all too well what attention must be paid from the moment product is planted to when it is displayed in the supermarket. After all, we have been involved in international trade of produce for more than 50 years. In Europe, we navigate 28 different countries, languages and laws to get imported produce from around the world to stores. In the UK, with our affiliated company, ERMS, we utilize state-of-the-art refrigeration and distribution technologies to serve the most demanding customers. Whether you are an exporter looking for a reliable partner to take away the burdens and risks of direct shipping, or a retailer needing an experienced expert to manage fluctuating market conditions, look to Lehman & Troost to relieve your stress of importing so that you can do what you do best – taking care of YOUR CUSTOMERS. We’ve got your back. Lehmann & Troost bv Transportweg 33 • 2742 RH Waddinxveen • Netherlands
31 180 631 011 • www.lehmann-troost.nl ERMS UK Ltd Building E3 • Ronald House • Fenton Way Chatteris • Cambridgeshire • PE16 6UP 44 (0) 1354 694000 • www.ermsuk.com
Lehmann & Troost.indd 1 3/18/16 12:17 PM FORWARD THINKING
APRIL 4, 2016 MAY 11 - 13, 2016 PRODUCE FOR BETTER HEALTH’S ANNUAL MEETING EXECUTIVE LEADERSHIP SYMPOSIUM Conference Venue: Omni Scottsdale Resort & Spa Conference Venue: Dallas at Montelucia, Scottsdale, AZ Conference Management: PMA Foundation, Newark, DE Conference Management: Produce for Better Health Phone: (302) 738-7100 • Fax: (302) 731-2409 Foundation, Hockessin, DE Email: [email protected] Phone: (302) 235-2329 • Fax: (302) 235-5555 Website: pmafoundation.com Email: [email protected] Website: pbhfoundation.org MAY 21 - 24, 2016 AMERICAN FOOD FAIR APRIL 12 - 14, 2016 Conference Venue: McCormick Place, Chicago CPMA 2016 Conference Management: National Association of State Conference Venue: BMO Centre, Calgary, Alberta, Departments of Agriculture (NASDA), Arlington, VA Canada Phone: (703) 259-6120 • Fax: (703) 934-4899 Conference Management: Canadian Produce Marketing Email: [email protected] Association, Ottawa, Ontario Website: nasdatradeshows.org Phone: (613) 226-4187 • Fax: (613) 226-2984 Email: [email protected] MAY 21 - 24, 2016 Website: cpma.ca NATIONAL RESTAURANT ASSOCIATION SHOW Conference Venue: McCormick Place, Chicago APRIL 20 - 22, 2016 Conference Management: National Restaurant Associa- WORLDS OF FLAVOR tion, Washington, D.C. Conference Venue: CIA Greystone, Napa Valley, CA Phone: (312) 853-2525 • Fax: (312) 853-2548 Conference Management: Culinary Institute of America Email: [email protected] at Greystone, St. Helena, CA Website: restaurant.org/show Phone: (707) 967-1100 Email: [email protected] JUNE 5 - 7, 2016 Website: ciaprochef.com THE INTERNATIONAL DAIRY-DELI-BAKERY ASSOCIATION (IDDBA) APRIL 20, 2016 Conference Venue: George R. Brown Convention Center, NORTHERN CALIFORNIA EXPO Houston, TX Conference Venue: Alameda County Fairgrounds, Conference Management: International Dairy Deli Bakery Pleasanton, CA Association, Madison, WI Conference Management: Fresh Produce & Floral Phone: (608) 310-5000 • Fax: (608) 238-6330 Council, Anaheim, CA Email: [email protected] Phone: (714) 739-0177 • Fax: (714) 739-0226 Website: iddba.org Email: [email protected] Website: fpfc.org JUNE 8 - 10, 2016 THE LONDON PRODUCE SHOW AND CONFERENCE MAY 2 - 6, 2016 Conference Venue: The Grosvenor House, Park Lane, ISGA CONVENTION London Conference Venue: El Convento Hotel, Puerto Rico Conference Management: Phoenix Media Network Ltd., Conference Management: International Sprout Growers Berkeley Square, London Association, Warwick, RI Phone: 44 (0) 203 143 3222 • Fax: 44 (0) 203 006 8568 508-657-ISGA (4742) Email: [email protected] isga-sprouts.org Website: londonproduceshow.co.uk
MAY 5 - 7, 2016 JUNE 14 -16, 2016 SIAL CHINA MENUS OF CHANGE Conference Venue: Shanghai New Int’l Expo Centre, Conference Venue: Culinary Institute of America, Shanghai, China Hyde Park, NY Conference Management: IMEX Management, Inc., Conference Management: Culinary Institute of America, Charlotte, NC Hyde Park, NY Phone: (704) 365-0041 • Fax: (704) 365-8426 Phone: (707) 967-1100 Email: [email protected] Email: [email protected] Website: imexmanagement.com Website: ciaprochef.com
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14 / APRIL 2016 / PRODUCE BUSINESS Dole.indd 1 3/23/16 9:26 AM fruits of thought
Belgium In Our Thoughts BY JIM PREVOR, PRESIDENT & EDITORINCHIEF often wonder what happened to Mrs. Hermanns. Her company is lost Around the World.” Yet, to us, the clarifying insight of these attacks in memory, but when this author cut his eye-teeth in the produce is that they are not shocking at all: We don’t know every detail, but Iindustry, one of the shippers I took care of was a Mrs. Hermanns it is clear there is a jihadist element, spawned from ISIS and the an- from Belgium. She shipped us Belgian endive on consignment. archy of the Syrian Civil War, that is intent on attacking the West and We were the only company she worked with on consignment. As already has a deep network in Europe — especially in Belgium and a young man, I did all I could to build demand. I remember working France. Two Belgian brothers who are responsible for the terrorist in my kitchen in a small New York apartment braising Belgian endive attacks in Belgium also had clear ties to the Paris attacks this past so I could reach out to chefs with usage ideas. It was a tough battle November. A third man, believed to be the second suicide bomber to build demand for this comparatively specialized and expensive at the airport, was exchanging text messages with the gunmen at product, and we had a competitive dilemma. Seymour Schnell of H. the Bataclan theatre when the attacks in Paris were being executed. Schnell & Co. — who, it was whispered, was the richest man in the We can, of course, critique the Belgian police and security au- New York produce market — had sufficient business to bring in 20-foot thorities, as well as broader European institutions. Turkey claims containers of Belgian endive by sea, while we only it deported one of the brothers to Europe and could receive smaller volume via air shipments. informed authorities he was dangerous and had I have often wondered if she was still in busi- Our thought that ties to terrorist groups. It appears a lot of work that ness. Is she retired? Back in those pre-email days there is opportu- should have been done, clearly, was not. when even international travel and phone calls were nity in the Belgian There are larger issues, though. It is not clear expensive, we worked together for years without governments in Europe and North America under- ever meeting — not even a phone call that I can produce industry stand this is a kind of war, and the restrictions we recall. It was countless Telex messages going back was, initially, just put on normal police activity simply won’t suffice and forth. We have long since lost touch, yet I liked a thought. Now, to keep the peace against this enemy. It appears, to imagine her enjoying a nice retirement; perhaps despite the Turkish report, Ibrahim El Bakraoui her children took on the business, and in some trying to support was not arrested or pursued, because he had no small way, our efforts to sell her endive helped the beleaguered known history of terrorist attacks. secure her future. country is a moral That is good for police work, but not war. Sol- It was months ago we planned our report on the diers are the enemy — not because they have Belgian produce industry and the possibilities for obligation. done anything to us — but simply because they U.S. retailers and distributers in handling Belgian are part of an enemy force. Many dreams, such as produce, which you will find on pages 88 and 89. Mira Slott, special the Schengen Agreement for free movement of people with passports projects editor at PRODUCE BUSINESS and PerishablePundit.com, traveled and border checks, must be deferred. with Gill McShane, managing editor at ProduceBusinessUK.com, to More broadly, governments must be honest with their people build stronger editorial relationships and gain a greater understanding that they cannot be protected solely by playing defense. Groups, like of the diversity and professionalism of the Belgian trade. The articles ISIS, have to be deprived of resources such as land to operate on, we ran are in many ways celebrations of good people, good produce oil to sell and much more. This may take great sacrifice in blood and and an openness to trade with opportunities to grow an industry and treasure, and an active effort to wage war on ISIS will surely involve feed the world in a healthy and delicious manner. boots on the ground in the Middle East. As we go to press, though, horrid terrorist attacks have hit Bel- But if we are not prepared to defend our own civilization, who gium. The Mabru wholesale market (the Hunts Point Produce Market will? If we are not prepared to do what we must to ensure the safety of Brussels) was temporarily closed for security reasons, along with of our people, who will? much of the city and country after attacks at both the Maelbeek metro Our thought that there is opportunity in the Belgian produce station near central Brussels and Zaventem international airport. The industry was, initially, just a thought. Now, trying to support the metro explosion occurred right next door to the offices of Freshfel, beleaguered country is a moral obligation, and we encourage all to the European produce trade association. The Thon hotel, where I’ve seek ways to help. We certainly will do so with our resources. stayed to attend Freshfel events, was converted to an emergency We had many wake-up calls. Now, let’s hope our governments triage/first aid center. The top Freshfel executives and staff were wake up. As for Mrs. Hermanns, I pray she is alive and well — braising locked in their offices, thankfully all unscathed, but also unable to some endives for dinner. pb leave as the city was placed on lockdown. The news reports strike this author as bordering on bizarre. USA Today ran a headline, “Terrorist Attacks in Brussels Send Shock Waves
16 / APRIL 2016 / PRODUCE BUSINESS
Jim's Column.indd 1 3/24/16 2:28 PM Mann Packing.indd 1 3/16/16 3:53 PM RESEARCH PERSPECTIVE
Mega Trends Drive Sales, But Striking Balance Remains Important BY ANNE-MARIE ROERINK, PRINCIPAL AT 210 ANALYTICS
rown in the USA, locally grown and organic are powerful trends Gin produce, and six in 10 shoppers ... Local wins out in a scenario where would like to see their stores add more items in each of these categories. Those conventional, local and organic are all are not small numbers, but we also know equally priced, and, if organic and local that what shoppers say versus how they actually behave is not always the same are sold at a price premium. thing. As such, the cited high levels of con- sumer interest in locally sourced and organic produce is certainly subject to real market As to locally sourced, eight in 10 shoppers are finding price to be a big obstacle. And conditions in which these items often come purchased fruits or vegetables labeled as although affluent shoppers are almost twice at a price premium versus their conventional local but their own opinions on what exactly as likely as the lowest income shoppers to counterparts. So what is the real story? constitutes “local” vary widely, ranging from buy organic produce, those who don’t are A little of both, it seems. Let’s take hyper-local, a radius or state to national just as likely to cite price as the reason. organic produce: Where conventional at roughly equal shares — leaving ample Others do not believe there are added bene- fruit and vegetables grew a respectable opportunity for the retailer to build the fits or do not see enough information about 3.4 percent and 3 percent, organic fruit definition and program that best matches the added benefits for them to make the advanced 20.7 percent and organic vege- their philosophy. Reasons for buying local organic purchase. tables increased dollar sales 19.1 percent, are freshness first and foremost, followed While supermarkets are the clear winner according to IRI. Importantly, growth in by supporting the local economy/farmers in total fresh with a 60 percent share in organic produce captured 27 percent of and knowing where the produce is grown. produce, the organic purchase is scattered total produce dollar growth in 2014. On the other hand, top organic purchase across multiple channels. At 50 percent, But the other side of the story is that drivers are the “free from ...” (substances supermarkets do take the majority share organic produce makes up a mere 7.4 they wish to avoid) and perceived better but several others including specialty stores, percent of total produce sales. As such, nutritional value. In a direct comparison, farmers markets and even supercenters the high growth numbers are at least in local wins out in a scenario where conven- are named the primary outlet for organic part due to the size of the segments: a tional, local and organic are all equally produce by double-digits. small base mathematically allows for much priced, and, if organic and local are sold easier growth than the massive and mature at a price premium. As such, the growing category of conventional produce. demand for local may somewhat cloud the Secondly, the bulk of purchases continue organic market and decelerate its rapid to be made by a fairly narrow, hard-core growth, as observed this past year. following of shoppers. While 52 percent of Freshness is an important reason for Food Marketing Institute is a trade association that ad- shoppers purchased organic in the past three purchasing either product, and local and vocates on behalf of the food retail industry. FMI’s U.S. months, for many, this is only an occasional organic appear to be increasingly linked in members operate nearly 40,000 retail food stores and choice versus the routine option. Organic shoppers’ minds. However, this may also 25,000 pharmacies. Through programs in public affairs, food safety, research, education and industry relations, continues to see much higher participation mean that organic foods could piggyback FMI offers resources and provides valuable benefits to among higher-income households and fami- on locally grown claims among non-users more than 1,225 food retail and wholesale member com- panies in the United States and around the world. lies with children. Particularly the presence with their added advantage of greater of young children (up to age 6) is an accel- recognition and the appeal of supporting erator for produce purchases in general and local economies. organic produce sales, specifically. Programs Regardless of the impact of local, organic focused on engaging families with young produce gained converts in the past few children, or educating children on produce years, and 95 percent of organic produce can help create a lifelong engagement with buyers believe they will either buy the Source: The Power of Produce 2015 — Shopper research the category. Some examples are the Publix same or more organic produce in the next by the Food Marketing Institute, made possible by Baby Club and H-E-Buddy. year. But those who remain unconverted Yerecic Label and implemented by 210 Analytics.
18 / APRIL 2016 / PRODUCE BUSINESS COMMENTS & ANALYSIS
More Than Meets The Eye BY JIM PREVOR, EDITOR-IN-CHIEF, PRODUCE BUSINESS
t is one thing to see increases in the sales of organic produce; it is another Ithing entirely to understand why those Even things that seem obvious may numbers are moving up. One big trend is for supermarkets to reduce the number not really be so. It is widely accepted of SKUs carried. One way of doing so is to carry only organic versions of low-vol- that the premium for organic produce ume items. This reduces the number of is a big obstacle to increasing organic warehouse slots, vendors and, in general, simplifies the entire operation. Since the sales. ... If magically, organics suddenly organic-preference consumers are getting became cheaper than conventional, organic product, they are satisfied, and the conventional shoppers mostly don’t perhaps consumers would not be so care if the item is organic. So organic sales get boosted without increasing intent for quick to assume that organic is better consumers to buy organic. — they might only want the expensive Merchandising practices also impact organic sales. The trend has been to inte- stuff for their babies. grate sets where organic produce is sold alongside its conventional equivalent. Most stores that switch from a segregated set to integrated report an increase in organic growing regions, it is not so hot. produce that is “fresher.” When in reality, sales. This scenario might mean consumers, Often local has a political tinge to it. No supermarkets have elaborate programs to when confronted with both organic and matter how narrow the English Channel, maintain the cold chain and thus product conventional, opt for organic. It also could people in Britain do not mean French when quality. Many a vendor at local farmers mean consumers don’t pay much atten- they are thinking local produce — they markets participates on Monday, then tion; they see beets or carrots, know they mean British. loads everything in the pickup and heads want them, and grab the first they see — It is also to be noted that local is trendy to another town for another market on accidently picking up organic. and perceived as a good thing, so super- Tuesday. If by fresh, one means of high The spread of organic produce, often markets may find ways to show they are quality, this broken cold chain is unlikely to farmers markets, CSA boxes, or similar selling lots of local stuff. But if the stores to deliver the desired result. outlets, may or may not be true. How many happen to be in California, and the chain Even things that seem obvious may consumers check for the US A Certified defines local as grown within the state, they not really be so. It is widely accepted that Organic signage at the farmers market? will be selling lots of local — but they were the premium for organic produce is a big Food Marketing Institute is a trade association that ad- vocates on behalf of the food retail industry. FMI’s U.S. How many assume everything at a farmers doing that 10 years ago, too. obstacle to increasing organic sales. Yet price members operate nearly 40,000 retail food stores and market is organic? Even if a farm has such a In any case, there is little evidence that is part of the elaborate signaling system that 25,000 pharmacies. Through programs in public affairs, certificate, what are the controls that guar- the mass of consumers want to give up helps signal quality to consumers. If magi- food safety, research, education and industry relations, FMI offers resources and provides valuable benefits to antee a consumer the product purchased year-round availability of almost everything. cally, organics suddenly became cheaper more than 1,225 food retail and wholesale member com- in a farmers market is actually grown by It is easy to eat local; but to be truly local than conventional, perhaps consumers panies in the United States and around the world. that farmer and covered by that certificate? year-round, you have to be willing to give would not be so quick to assume that PRODUCE BUSINESS conducted quite a bit of up tropical, only eat seasonally, and store organic is better — they might only want research on local, and we found it to be a the root cellar potatoes and turnips for the expensive stuff for their babies. sticky wicket. In the first place, consumer winter. Despite all the publicity, the trend is Every store is promoting organic, locally responses are not uniformly in favor of toward more international trade of produce grown, regional, Product of the USA … and geographically local produce. They like local — not less. every survey reports consumer interest in when the local region is traditionally an One of the big problems in life is people these topics. Perhaps, however, it is all the appropriate place to grow an item. But if believe things that may not be true. So marketing attention that creates consumer “locally grown” translates into inauthentic people may assume a farmers market sells interest not vice versa.
PRODUCE BUSINESS / APRIL 2016 / 19 FROM PRODUCEBUSINESSUK.COM 03.01.2016
W h at t o e xp e c t f r om c h a n gi n g t i m e s i n t h e U K f ood s e r vi c e an d h om e d e l i ve r y e n vi r on m e n t
hen we launched The London represented a significant opportunity. Produce Show and Confer- They also took note of the American W ence back in 2014, we found interlopers (e.g. Whole Foods Market that many producers around the world and Costco) which, though small, repre- viewed the U.K. through a dated lens. sented a growing market opportunity. JIM PREVOR They thought of four big customers as Now, there were two recent EDITOR-IN-CHIEF the only opportunity. announcements: one represents an In time, however, the very presence of immediate shift of the American posi- the event brought more attention to the tion in the market from a private equity U.K., and soon producers began looking owner to an operating company, while purchase is not really a surprise. at the market with new eyes. They saw the other is a flare across the British In the U.S., Sysco’s expansion is the hard discounters gaining market landscape reminding the industry of the constrained because of anti-trust consid- share and the more upscale, experien- potential of another American interloper. eration. The company’s attempted acqui- tial British retailers growing. They began The announcements were that Sysco sition of US Foods in the States was to realise the wholesale markets repre- agreed to acquire Brakes and Amazon turned down by regulators. sented a not insignificant opportunity. agreed to distribute certain products So Sysco is highly motivated to grow As they looked, they realised that the supplied by Morrisons. outside the U.S. With the acquisition of foodservice business had blossomed in Pallas in Ireland a few years ago, the the U.K. as London became a world culi- Sysco-Brakes next logical place was the U.K. The deal nary capital. More careful observation Why is Sysco buying Brakes, and what probably won’t close until July. also made it clear that online vendors does it portend for the U.K. market? The As far as “strategy,” we can assume Sysco will allow Brakes to grow as it can. Now with the advantage of a much larger company providing financial and oper- ational support, tested technology, etc. Initially, Sysco won’t change much, but it will have a much longer time horizon on investment than Brakes’ previous private equity owners did. In the long run, this shifting of time horizon is the big change. A competitor or a supplier that is always looking to sell will inevitably be unwilling to do things that a player in it for the long haul will be willing to do. Sysco will begin to search internally for best practices and explore syner- gies to help each other. On some key items, Sysco may look to do consolidated
20 / APRIL 2016 / PRODUCE BUSINESS LPS 2016 F-P.indd 1 3/16/16 3:51 PM FROM PRODUCEBUSINESSUK.COM 03.01.2016
purchasing, say for bananas, to get the best price. And Sysco will be focused In general, Sysco is an enormously suc- on food safety, wanting to always be cessful and well resourced company. Is it world class. ysco ill definitely assess Bra es more than ten times the size of Brakes. private la el line to see i flavour profiles pac si es etc. can e consolidated or So there are few things Sysco can’t do — greater scale to reduce manufacturing costs. if it is committed to doing them. If there are foodservice operators that have a presence in both countries, Sysco auley s and ild arvest and oth the . . it ill loo to ma e an ac uisi- will reach out and offer a contract to are su ficiently produce ocused that tion on the continent, and the company cover both places — say with Marriott they exhibited at our London Produce might tas Bra es ith identi ying uro- hotels. Show and Conference. pean opportunities. t is li ely ysco ill tas the manage- Whether these specialist organisa- In general, Sysco is an enormously ment o Bra es ith gro ing oth tions are su ficient or ysco s reach successful and well resourced company. organically and by acquisition. After all, or whether the company feels there is s it more than ten times the si e o the company has a great trac record o mar et space to scale up and ill loo to Bra es. o there are e things ysco buying smaller distributors. In Ireland, acquire a major U.K. produce specialist, can t do i it is committed to doing Sysco followed up the Pallas acquisi- it is probably premature to say. them. tion with Crossgar Foodservice. In the In the U.S., Sysco also purchased But ysco is a large pu licly held U.S., Sysco purchased a company called various specialist distributors, both in company, so it is constrained in its ability FreshPoint to be its dedicated produce product sea ood produce etc. and in to move uic ly and concerned a out house since the company found the full niche sian oods etc. . there is a ig quarterly earnings presented to Wall line houses were not focused on selling distributor with a dominant place in, say, Street, etc. produce and, often, not capable of doing Indian food in the U.K., Sysco would be Reasonably projecting, competitors the job well. interested in buying it. probably have a year-and-a-half while Bra es has su sidiaries such as In time, if Sysco has some success in merger issues distract the ysco Bra es team to sharpen their reputation and capabilities. Then one can expect a tougher competitive environment than in the past.
Amazon-Morrisons s ar as ma on goes the ne s is a boost to Morrisons and a threat to Ocado the online supermar et . n the long term the point is not the specifics o this deal it is that ma on is incrementally expanding in the food business in the U.K. — growing its geographic footprint and broadening its product range. hat gets lost is this esco s total mar et capitalisation is a out . illion B hile ma on s is . n B For the moment, this support by the mar et means ma on can invest substantially in building its U.K. platform. ong term this disparity in mar et value indicates that the mar ets see the uture more in clic s than in ric s. nd or vendors across Britain and around the world, the message is clear: the times they are a changin and the opportunities are there to e sei ed y those both innovative and the agile.
22 / APRIL 2016 / PRODUCE BUSINESS Idaho Potato.indd 1 3/16/16 3:49 PM RETROSPECTIVE JEFF SHILLING, VICE PRESIDENT PROCUREMENT FOR FRESHPRO FOOD DISTRIBUTORS, REMINISCES ABOUT HIS EARLY DAYS IN PRODUCE AND SHARES ADVICE FOR FUTURE GENERATIONS.
BY JODEAN ROBBINS
ith 42 years in produce, Shilling When did things start to change, and what encountered significant shifts in were the drivers? W the industry during his career. He In my opinion, the single event with the started as a part-time clerk in Kings Food greatest impact on produce was the intro- Markets in 1973 at the age of 16 during high duction of the Jane Fonda workout videos school and remained in retail, holding posi- in 1982. Suddenly, women (and eventually tions such as produce manager, night manager men) had a new interest in exercise and and assistant store manager. After 10 years, eating healthy. This caused an explosion in he moved into the warehouse (owned by the produce industry, as everyone wanted to Kings at the time) as an assistant produce add fresh fruits and vegetables to their diet. buyer, then produce buyer, head produce Produce department cut-out percents [the buyer, sales manager, and director of produce percentage of produce sales compared to total procurement. He is currently vice president store sales] went from the low teens to the procurement for FreshPro and responsible for high teens — even low 20s in some stores. overseeing all purchasing in all departments. What were some if the biggest innovations Where were you in 1985? Jeff Shilling in the industry during the past 30 years? I was working in the warehouse as produce Starting in the early 80s, we saw the intro- buyer and assisting as sales manager for duction of salad bars, juice machines, pine- Kings. My responsibilities included produce loose pints. There were no packaged salads apple corers, and we even had pea shuckers purchasing and store merchandising, in addi- to speak of; in fact, if something was pack- and sprout growers in some departments. tion to managing retail pricing and advertising aged, it usually meant it was being reduced Educating the consumer on how to prepare programs for the stores. for quick sale. Loose bulk displays of product fresh produce and the nutritional value of were synonymous with freshness. We had our fresh produce was starting to become popular. What was the produce department like own product identification numbers for the We had produce “Tip Tapes” in the depart- in 1985? cashiers to identify product with at the front ments. They were a looped VHS tape — put We had about 250 regular SKUs in the end. PLU numbers and UPC numbers were out by United Fresh Produce Association produce department — almost all of which just being introduced in produce. — to help educate consumers on specific were fresh. I remember a few years later, we products. Recipe cards were marketed by remodeled a store, and in effort to show our How was the overall retail environment? several companies and point-of-sale signs variety, we brought in around 450 items, which This was probably the most exciting time were becoming more informative. was unheard of at that time! in the produce business. Fresh produce was As we entered the 90s, organics became In the mid 1980s, just about everything in and we could do no wrong. Just pile it a hot button for us. While few supermarket still had a season. When the season was over, high and watch it fly! Tonnage was constantly chains carried organic produce in the early we went to the next item. Imported produce increasing and new items were arriving all the 90s, just about everyone had some organic was beginning to become popular around time. Farmers were starting to pay attention to presentation by the end of the decade. Pack- then, with products like colored peppers from flavor, rather than how long the product would aged produce began to become more popular Holland and Jet Fresh peaches and nectarines hold in a cooler. Improvements in trucking with packaged salads increasingly replacing from Chile. There was no marketing of organic and refrigeration helped get product to the fresh salad sales. Produce variety went wild in produce in our supermarkets until the Alar destination faster and in better condition. The the 90s with new items constantly introduced. scare of the late 80s. Whatever fresh-cut increase in popularity of air containers meant Companies like Frieda’s helped retailers sell products were in the department were cut more imported produce from overseas could these new products to the consumer with in the store. Strawberries were still sold in be introduced to the mix. informative and attractive packaging. Flavor
24 / APRIL 2016 / PRODUCE BUSINESS was key to repeat sales, and growers were finally planting only flavorful varieties.
How would you describe the produce department today? After the turn of the century, it seemed nothing had a beginning or end to the season. More variations of the same items were intro- duced, which cut into available shelf space. In just about every chain, this made the once overflowing displays turn into small, neat cubbyholes requiring constant attention to keep them stocked. Once bountiful looking departments were replaced with depart- ments appearing to be more concerned with (L-R) Jeff Shilling and Harry Taylor (now deseased) photographed in a Kings sometime in the 1980s showing the number of items carried rather than the off the “Tip Tapes” — looped VHS tapes distributed by United Fresh Produce Association — to help educate consumers on specific products. number of total cases sold. As supermarket family owners were replaced with corporate care of the sales. If you do what is right for If I knew this answer, I’d invest in it and and financial owners, it became more about the product, it will sell itself. Cold items need retire. However, the ridiculous demand for high margins and less about sales. to be kept cold, wet needs to be kept wet, gross-profit margins needs to be replaced with dry needs to be kept dry. It’s not that hard. It a push for increased tonnage. If the demand What was the greatest lesson you learned drives me crazy when I see apples displayed for fresh produce does not keep increasing, about retailing during the past 30 years? out of refrigeration and pears in refrigeration. there is no incentive for young people to Without a doubt, one has to love this busi- It should be the other way around if you really get into the farming business. Without new ness to be successful in it. Produce is a living, want to do what’s best for the product. farmers, our fresh food supply will be forced breathing commodity. Every day is as different to rely more on imported produce. This nega- as it is exciting. It’s really simple too: take What will drive the industry in the next 10 tive spiral can still be controlled, but there care of the product and the product will take to 20 years? needs to be a conscious effort to do so. At the same time, the retail environment needs to attract “career” produce people, not just those looking for a weekly paycheck.
What are the challenges holding us back? Government over-regulation continues to interfere with industry growth. We seem to be more concerned with fresh produce safety than we are with fresh produce consumption. Obesity is a serious problem, yet the answer is staring us in the face. Increase fresh fruit and vegetable consumption and the obesity problem will start to go away.
What are your thoughts on choosing produce as a career today? I don’t know if there are enough financial or motivational incentives for young people to enter the produce industry, or the super- market industry in general. Due to the need for companies to constantly show an improved bottomline, full-time positions are hard to come by as they have given way to part-time. It is difficult to make this a career if you are only working part-time hours.
What advice would you give young retailers entering the produce industry? Know your product, and know your customers. Do what is right for your product and give the customers what they want.
PRODUCE BUSINESS / APRIL 2016 / 25 ADVERTISEMENT GROWER ALLIANCE ADVANCES IN THE MARKET Expanding deals, products and people positions Grower Alliance for even greater service.
uilding on nine years of experience, 1. EXPANDING STAFF At the field level, Grower Alliance recently BGrower Alliance continues to expand Over the past year, Grower Alliance has hired food safety specialist, Ricardo Rome- operations — bringing together a variety expanded key staff positions to better sup- ro as food safety director. Romero has an of outstanding Mexican fruit and vegetable port the on-going mission of the company extensive food safety background and is growers — and offers an increasing array of and to service customers. In 2015, the com- responsible for ensuring all growers asso- available products. Now with the capacity pany hired two new sales team members ciated with Grower Alliance have their food to ship more than 4 million packages a year to keep up with the increasing product and safety specs and certifications are current. for a portfolio of produce with more than 10 season expansion. Alan Durazo, is part of He provides assistance to growers as need- products, the company continues to nurture the company’s sales force and Alex Angulo ed in the areas of food safety programs and its pursuit of excellence in many areas. is a sales coordinator. audits. All Grower Alliance growers are both YEAR LONG CALENDAR Take a look at Grower Alliance’s year-round product calendar, and start planning your year with Grower Alliance.
Grower Alliance.indd 1 3/22/16 2:33 PM GAP- and GMP-certified. All fields are certi- from Baja will be available June, July and 5. CONTINUED FOCUS ON PEOPLE fied with wither PrimusLabs or SCS Global August. The Baja watermelon deal now Grower Alliance’s success is rooted in its Services. establishes Grower Alliance a year-round philosophy that its business is about the supplier of watermelons out of Mexico. The people who grow and market the products. 2. INCREASING MCALLEN DEAL company’s watermelon deal out of Northern The company provides support to its grow- Though Grower Alliance has been ship- Mexico (Chihuahua and East Sonora) pro- ers and customers — helping expand opera- ping from South and Central Mexico via vides product in September, so the Baja deal tions and investing in communities. Through McAllen for the past seven years, the com- serves as a bridge between the Northern this investment, the company ensures high pany recently established additional deals Mexico region and other source areas. quality, consistent product and fair working for significant volume increases. This com- conditions among its producers. GROWER ALLIANCE ADVANCES ing season, the company expects to quadru- 4. EXPANDING SERVICES ple the packages received via McAllen. This To better serve customers and meet fu- A major area of support given by Grower substantial deal will be July 2016 through ture growth, Grower Alliance offers various Alliance is in expansion of infrastructure. IN THE MARKET February 2017 and include Beefsteak and services in addition to product sales. With Grower Alliance has been able to purchase Roma tomatoes and bell peppers. the acquisition of its Nogales building in July and install several cold rooms at growers’ of 2011, it began offering in-and-out services packing sheds. The company also assisted 3. INCREASING BAJA DEAL to other companies as well as rental office its growers in the acquisition of more land. Grower Alliance is also expanding oper- space to them. The company also provides Grower Alliance supplies growers with drip At the field level, Grower Alliance recently ations to include a cucumber, a hot pepper consolidation services for companies out- irrigation systems and cover for their plants, hired food safety specialist, Ricardo Rome- and a watermelon deal from Baja. Cucum- side of Nogales that want to load in one lo- and assists growers with the purchase of ro as food safety director. Romero has an bers from Baja will be shipped June through cation as opposed to picking up in different shade house systems. extensive food safety background and is September. Hot peppers and watermelons warehouses. responsible for ensuring all growers asso- ciated with Grower Alliance have their food safety specs and certifications are current. He provides assistance to growers as need- ed in the areas of food safety programs and YOUR ALLIES audits. All Grower Alliance growers are both Key people involved with Grower Alliance include: YEAR LONG CALENDAR
Jorge Quintero, Jr. Jorge Quintero, Sr. Luis Caballero Sales, Managing Member Sales Manager, Managing Member Mexican Operations, Managing Member
Jaime Martinez Frank Hernandez II Alan Durazo Luis Alcantara Alex Angulo Head accountant & grower relations Sales Sales Sales Assistant Sales Coordinator
Maritza Guevara Francisca Davila Armando Robles Cesar Yanez Ricardo Esquivel Accounts Receivable Accounts Payable Warehouse Foreman Dispatcher Quality control Grower Alliance, LLC Tel: 520-761-1921 • Fax: 520-377-9189 • www.groweralliance.com
Grower Alliance.indd 2 3/22/16 2:34 PM ASCENDENT INDEPENDENTS Balls Food Stores The three-format retailer serves a diverse customer base using its authentic heritage.
BY CAROL M. BAREUTHER, RD
PHOTO OF A PRICE CHOPPER’S PRODUCE DEPARTMENT COURTESY OF BALLS FOOD STORES
here’s an old saying that if you can’t the area’s rst cash-and-carry system. Fred represents 13 percent of total store sales. be rst, then be dierent. Balls Food Ball (their son) grew up in his parent’s busi- Price Chopper is middle-of-the-road in its Stores is a good example of a business ness. By the 1980s, Fred expanded the chain aesthetics and the low-price leader in Kansas that is both — inventor and innovator. to 13 stores. Fred’s son, David (the current City. e banner’s 16 stores, located in Kansas ese assets have proved a winning chief executive ocer and company president) and Missouri, oer some 500 SKUs with 40 Tcombination for this third-generation chain continued to expand and kept the focus on to 50 of these organic. Produce generates 10 that is close to celebrating a century in oper- fresh with a strong “Buy Fresh, Buy Local” percent of total supermarket sales. ation. program and in-store CSA. Finally, Pay Less Discount Foods carries Borne out of a single mom-and-pop store Today, Balls Food Stores operates three an average 400 SKUs of fruits and vegeta- in 1923, today the chain boasts 28 stores in formats: Hen House Markets, Price Chopper bles, limited organics, and 9 percent store a trio of formats designed to ll the needs and Payless Discount Foods. e retailer is one sales come from produce. Pricing is EDLP of its Kansas City customers. e secret to of the largest employers in Kansas City with (every day low price). Store sizes span from this success is putting customers’ needs rst. 3,200 team members. 30,000-square-feet for a Hen House Market Nowhere is this evident than in the produce Hen House, with 11 locations in the in a small community to a Price Chopper of department. Kansas City Metro area, is a neighborhood up to 80,000-square-feet. It’s a trio of formats Produce was one of the foundations of supermarket where the emphasis is on perish- that gives Balls Foods the ability to oer some- this early full-service supermarket. e store’s ables and a high level of service. ere is an thing to everyone in this two-state metro founders and food distributors, Sydney and average of 700 produce SKUs, 80 to 100 area — where the population is 2.3 million Mollie Ball, opened a store and implemented organic fruits and vegetables, and produce and median income ranges between $38,000
28 / APRIL 2016 / PRODUCE BUSINESS to $45,000 on the Kansas or Missouri sides, respectively. e opening of its own central warehouse 15 years ago enabled Balls Foods to purchase 70 percent of its produce direct from suppliers. e remaining 30 percent is sourced through its membership with Kansas City, KS-head- quartered Associated Wholesale Grocers (AWG). “Having our own warehouse allows us to be hands on in what we buy, such as cream-of- the-crop items such as Driscoll’s berries, Sun World’s grapes and Oneonta’s (Starr Ranch Growers) apples, pears and cherries for our Hen House stores,” says Steve May, director of central warehouse, produce and oral for the Kansas City, KS-headquartered chain. “We can also take advantage of a variety of sizes of fruits and vegetables for use in tote programs at Price Chopper and EDLP pricing programs at Pay Less.” Balls receives deliveries to its warehouse seven days a week, assuring as May says, “maximum freshness due to turns through the roof.” AWG delivers to Balls warehouse three to ve days weekly. Individual stores receive produce from the chain’s central warehouse four to ve days a week. May heads the buying team and purchases East and West Coast fruits. Wayne King buys vegetables on both coasts, while Lori Franklin heads up the Hispanic/tropical and organics sourcing. Mark Fishman is the local procure- ment buyer. Local is huge for Balls, along with organics, and both categories are a major way the chain dierentiates itself from chief competitors such as Hy-Vee, Sprouts Farmers Market and Wal-Mart Super Centers and
Neighborhood Markets. PHOTOS ABOVE OF HEN HOUSE MARKETS COURTESY OF BALLS FOOD STORES “We partner with 150 growers annually located within a 200-mile radius for our ‘Buy Fresh Buy Local’ program. Many of these n BALLS FOODS’ HEN HOUSE are family farms, and we serve as their distri- MARKETS NAMED RETAIL ROLE MODEL BY bution arm by having them simply deliver to our central warehouse. We meet with the PRODUCE FOR BETTER HEALTH FOUNDATION growers in November and December to give Hen House Markets, an 11-store banner of Kansas City, KS-based Balls Foods Stores, them specics on what we want. For example, is one of only 10 retailers in the nation to receive recognition as a Retail Role Model 300 pounds of cucumbers weekly from X to in 2015 by the Hockessin, DE-headquartered Produce for Better Health Foundation Y date and what we are willing to pay. at’s (PBH). This is the first time Hen House received this honor. what our growers love about us. We’re willing Retailers who attain this title employ a multitude of methods to encourage to pay a fair market value. consumption of fruits and vegetables by its customers. This ranges from using the e locally grown season in Kansas starts PBH logo on marketing materials, packaging, signage and ad circulars to linking to with leaf lettuces in the month of May. Fruits the organization’s website. In addition, Hen House Supermarket Registered Dietitian, and vegetables from berries and apples to Kayla Graves, teaches customers about ways to include more produce in their diets peppers and broccoli are cultivated through the in a variety of ways, such as school store tours, cooking and nutrition education summer and into October. is local produce classes, and in-store events. is oered at all three of Balls formats. “This is very cool,” says Steve May, director of central warehouse, produce and floral, May says food safety is key to quality and of the Retail Role Model accolade. “It’s great to be recognized for doing good.” pb ensures customers feel safe. is is a fascinating
PRODUCE BUSINESS / APRIL 2016 / 29 challenge since many of the growers are simple Amish and Mennonite farmers who eschew modern conveniences such as electricity and literally use horsepower to plow. Fishman and his team, May says, help farmers decipher the volumes of requirements needed to become GAP-certied and remain certied each year. To accomplish traceability, the Balls team has come up with a sticker system. Farmers ax these stickers to each box of produce. e stickers have the farmer’s number, and the farmer can then trace the product down to the specic eld by date. “Pull Quote Pull Quote “We hold farmers markets right outside the front of our stores from 5 a.m. to 1 p.m. Steve May, Director of Central Warehouse, Pull Quote Pull Quote on Saturday mornings from July through Produce and Floral September,” says May. “e aroma of the ripe Pull Quote Pull Quote fruits is especially enticing. It’s a fantastic Hen House Markets was one of the rst way to for us to showcase the freshness of chains in the U.S. to set up a CSA program Pull Quote Pull Quote our produce to customers immediately as in-store. is program is now a decade old. Pull Quote Pull Quote they start to shop. In addition, we’ll host Customers pay $25 to register, and they receive ‘Meet the Growers’ events in our Hen House a bag and T-shirt. Each week, shoppers can opt Pull Quote Pull Quote Markets. is will include beef, poultry and to pick up their bag on Saturdays or Mondays. dairy farmers as well as a couple of fruit and Prices for products in the bag are up to 30 Pull Quote Pull Quote vegetable farmers. It’s another way that sets percent o regular retailers. Bag contents may — XXXXXXX, XXXXXXXXXX us apart, embracing local in a way that’s not include a few cucumbers, tomatoes, fresh corn, limited to produce.” watermelon, a pound of cheese, chicken and
30 / APRIL 2016 / PRODUCE BUSINESS a quart of milk. ere’s a trading table where customers can swap items, such as meats for more produce. Members receive a weekly newsletter that highlights participating farms, the growers, crop updates and recipes. In addition to local, Balls Foods made a commitment to sustainability. For example, the retailer recycles 100,000 tons of cardboard each month; the store has a Bag-to-Bag recy- cling program that diverted nearly 150 tons of plastic bags from landlls annually; and it composts more that any retailer in Kansas City at 65 tons monthly. Another way Balls Foods di erentiates itself is its chef ’s prepared produce. “We are the leader in our market area for fresh-cut fruits and vegetables,” says May. “It’s all done in a specic area of each store’s backroom built for this purpose, by trained dedicated chefs with a stringent food safety program in place.” Four Hen House Markets are equipped with fresh squeezed juice machines. It’s some- thing the chain introduced 20 years ago. Fresh- squeezed orange juice and lemonade are the two best-sellers. e juice machines are located in a kiosk on the sales oor. ere’s a menu of 20 di erent juices available akin to a juice bar concept. Combinations include carrot- beet and blends with kale. Kiosks are manned by full-time produce sta . e recipes are concocted by the store’s Development Team, which has four produce managers. e team also innovates other fresh-cut produce o er- ings as well as comes up with a go-to-market strategy for the new products. “We made a decision a long time ago to only use fruits and vegetables at their peak of freshness to juice, rather than culls,” says May. Bulk foods are another standout in produce. Selections include the top 120 SKUs of dried fruit, nuts and trail mixes in both conventional and organic. A full-time employee mans this station and makes freshly ground nut butter daily. Produce isn’t the only perishables depart- ment to stand out at Hen House Markets. e deli boasts brand name meats and cheeses as well as an award-winning salad bar with more than 25 fresh fruits and vegetables. “We can be nimble on truckload items since we have our own warehouse,” adds May. “ese are items we didn’t know about in time to put in our banner’s weekly ad. We’ll let customers know via social media. We also use this method to announce in-store events. For example, we do roadshows where our chefs go in store and do demos. We recently did this with breadfruit and ended up selling 30 to 40 cases because of the demo.” pb
PRODUCE BUSINESS / APRIL 2016 / 31 FOODSERVICE Convenience and culinary creativity elevate the bottomline. AT RETAIL BY MINDY HERMANN, RD
early two decades ago, “The Home Meal Replacement (HMR) Oppor- tunity: A Marketing Perspective,” a report from The Retail Food Industry NCenter, University of Minnesota, recognized a ourishing future for the pioneers of adding a foodservice component to retail. At the time, only a handful of chains produced prepared foods. Shoppers could purchase ready-to-eat, ready-to-heat, ready-to-cook, or ready-to-pre- pare items from the deli’s or prepared food‘s section to enjoy primarily at home. A few stores set up tables and chairs, along with a microwave oven, so shoppers could heat and eat their food in the store. Fast-forward to today, when “sales growth in the prepared foods department is outpacing any individual department, and also the entire store,” says Rick Stein, vice president, fresh foods, Food Marketing Institute (FMI), Arlington, VA. “Over an eight-year period from 2006 to 2014, the foodservice industry achieved growth of slightly more than 2 percent annually. During that same timeframe, super- PHOTOGRAPHY BY DOMENICA COMFORT FOR DECICCO & SONS market fresh prepared foods grew at a rate of 10.4 percent annually. There’s nothing like encompasses ‘destination supermarkets’ with for themselves.” double-digit growth to fuel expansion.” comprehensive offerings around their perim- “We made predictions in 2013 that underes- eter. Tier 3 stores, the largest tier, focus on PRODUCE NEEDS ARE timated the continued growth of fresh prepared ready-to-eat and ready-to-heat. Tier 4 stores SIMILAR — YET DIFFERENT foods in supermarkets,” notes Wade Hanson, feature an expanded deli.” The 2015 FMI-Tech- For suppliers, fresh prepared components principal, Technomic, Chicago. “The double- nomic report, The Sophistication of Supermarket offer the opportunity to provide a broader digit growth we have seen over the past decade Fresh Prepared Foods, notes that nearly all breadth of products to the supermarket. “The and the 8-plus percent growth we expect in markets surveyed offer soups, sandwiches, deli department purchases some of the same the years ahead con rm the robust outlook salads, and salad bars. Pre-packaged grab and items as the produce department, namely salad for the channel.” go is the biggest contributor to growing sales, blends and whole leaf lettuce,” says Kori Tuggle, Stein points out the way things have followed by self-service stations. marketing vice president, Church Brothers, changed: “We once de ned prepared foods as Fresh prepared foods t today’s busy life- Salinas, CA. “Deli departments also use larger primarily salads, rotisserie chicken and salad styles. “People value their time far more than pack-style formats for larger serving applica- bars. Now, high-quality meal solutions directly cooking and shopping,” observes Kelly Jacob, tions that do not include the consumer graphics compete with restaurant offerings,” he says. vice president, retail and emerging channels, produce departments require.” “Supermarket fresh prepared food depart- Pro*Act, a national network of local distributors Ready Pac Foods adapted its foodservice ments can be segmented into tiers based on headquarted in Monterey, CA. “They also will and produce department lines of salad bar the breadth of their offerings. Tier 1 includes pay for convenience when they can’t or don’t ingredients, multi-serve offerings, salad kits stores with restaurant-like operations. Tier 2 want to prepare fresh, healthy eating options and bowls, fresh-cut fruits and vegetables,
32 / APRIL 2016 / PRODUCE BUSINESS Vlam.indd 1 3/17/16 11:21 AM PHOTO COURTESY OF PUBLIX
and snack trays for the retail prepared foods Chatsworth, CA, which represents producers Most retailers operate foodservice and produce section, with offerings both behind-the-glass of consumer and industry-recognized fresh independent of each other through different and grab-and-go. “We bring solutions for produce brands as well as national and state cost centers. Foodservice also may order from freshly made options and work closely with fresh produce marketing associations. “Inno- a broader base of sources, including traditional our retail partners to create offerings they can vations like these make good sense to retail suppliers and distributors, foodservice distrib- assemble onsite,” explains Tristan Simpson, foodservice departments.” utors, supermarket buying groups, specialty chief marketing of cer, Ready Pac Foods, Inc., foods purveyors, and local farmers. Irwindale, CA. “Our team of chefs and culinary TRADITIONAL MEETS TRENDY “As a supplier, we maintain relationships scientists can work hand-in-hand with the retail “Retail foodservice is in a position to with each department we work with and have foodservice team to provide cost-saving options develop new, non-traditional recipes utilizing multiple relationships within a single retailer,” that help improve performance and realize traditional produce commodities,” says Muro. says Benjamin Walker, director, marketing and ef ciencies.” “For example, at one time, avocados were business development, Baldor Specialty Foods, Degree of preparation often differentiates thought of just for guacamole, and now look Bronx, NY. “Retail prepared foods departments foodservice products from those sold in the at this industry. Avocados are used as a fat heavily index toward fresh-cuts or value-added produce department. The prepared and reci- replacement in cakes and cookies, grilled, and produce for consistency and labor reduction. pe-ready products available to the prepared sliced on sandwiches.” Finished goods like individual green salads foods department save time and labor costs, as Retail foodservice also can add excitement also are popular.” well as lessen the food safety risks of preparing with demo kitchens and stepped-up sampling “We offer the same high-quality, washed foods onsite. Traditional deli supplier Reser’s programs throughout the store. “Guacamole and ready-to-eat vegetables to our retail and Fine Foods (Beaverton, OR) provides both may be traditional, but we started making foodservice customers,” says Jenny Stornetta, potato salads and cooked potato dishes such it on the sales oor in guacamole stations marketing communications manager, Apio, as roasted wedges and mashed potatoes with with mobile sinks and iced displays,” says Guadalupe, CA. Our foodservice packs come added avors in bulk size that can be served Alfonso Cano, produce director, Northgate in 2-pound, 3-pound and other sizes, allowing in the hot case or cut up into squares for the González, Anaheim, CA. “This is a combined our foodservice customers to select the right cold case. Shopper data from the U.S. Potato effort between our prepared foods and produce size for them. For example, we offer a kale Board and Chicago-based Nielsen Perishable departments to move more product. The demo vegetable blend similar to our best-selling Group shows wedges are the most popular deli sits next to a display of fresh produce, so shop- Eat Smart Sweet Kale salad kit in a 2-pound potato item, followed by mashed. Smaller vari- pers can buy prepared guacamole to enjoy today foodservice bag.” eties of prepared potato dishes are growing or pick up the ingredients to make it tomorrow.” “Our fresh prepared foods department uses more rapidly. the same vendors as produce. However, each To support the Mushroom Council’s The INDEPENDENCE VERSUS department orders separately,” says Maria Blend program (a mushroom-ground meat COLLABORATION Brous, director, media and community rela- mixture), mushroom suppliers began chopping, Providing produce to the ever-growing and tions, Publix Super Markets, Lakeland, FL. cooking, and packing mushrooms for sale to more sophisticated prepared foods department Sourcing procedures, whether formal or restaurant and foodservice within the super- within the supermarket has unique challenges. informal and internal or external, impact market. “Foodservice doesn’t want to spend No longer can produce suppliers rely solely on accounting practices. Jacob of Pro*Act time chopping and cooking,” explains Steven supermarket produce department buyers to observes that the produce department might Muro, president, Fusion Marketing agency in get produce into the prepared foods section. resist ordering for or supplying produce to
34 / APRIL 2016 / PRODUCE BUSINESS the prepared foods department, because it grocerant used to refer to retailers selling quartered in Santa Monica, CA. “The trend goes complicates inventory management and paper- prepared meals or grab and go to be eaten on beyond salad bars loaded with great fruits and work. A produce department fears it might not premise or off site,” says Jim Matorin, founder vegetables. Grocerant diners want local and be getting paid, especially if prepared foods of Smartketing, a Philadelphia-based marketing fresh. They want to see a beautiful display of employees informally shop for the produce resource company. “That is rapidly changing.” healthier ingredients that are incorporated needed by their department. “Prepared foods are moving away from into fresh, healthy, unique recipes. They want In contrast, the departments in some stores black plastic plates to in-store food courts and to eat different types of foods and avors that work closely together. At Northgate González, full-service grocerants staffed with high-end, are hard to replicate at home. They want to be the produce department transfers excess and culinary-trained chefs,” says Phil Lempert, food entertained with ballgames, bands, and wine ready-to-eat items to fresh prepared at no cost marketing expert and founder of Supermarket tastings. This goes beyond placing half a dozen since the items otherwise would go to waste. Guru, a food and health resource website head- Formica tables next to the deli.” New York’s DeCicco & Sons encourages collaboration. “Our goal at the end of the day is zero waste,” explains Andrew Mimran, system administrator, DeCicco & Sons, Brew- ster, NY. “Our produce manager and prepared food manager communicate daily to coor- dinate the fruit and vegetable supply in the stores. Produce has perfected truck-to-shelf stocking so the back room stores very little extra produce. That’s why prepared food gener- ally orders its own fruits and vegetables but from the same suppliers as the produce depart- ment. The produce department then adjusts the combined order to reduce redundancy and make the best use of items already in the store.” “We have a produce buying operation and a central kitchen commissary buying operation,” explains Steve Duello, director of produce oper- ations for Saint Louis-based Dierbergs Markets, Inc. “These entities operate independently of each other, but an open line of communication between buyers is essential for a successful operation.” Dierbergs works with United Fruit and Produce to get much of the inventory for produce departments. The company also has its own produce warehouse and sources a portion of product from the terminal market in St. Louis. Sysco, US Foods are examples of distributors both the produce and the central kitchen operators utilize. The central kitchen has a choice to outsource prepping for proces- sors and pack facilities. Sometime Dierberg’s produce departments even procure packaged or prepped items from its own central kitchens (to-go salads, for example). FMI’s Stein notes that while the whole culture of foodservice typically doesn’t transfer well to retail in terms of ef ciencies, super- markets are trying to create synergies by using the same supplier for produce and prepared foods and setting up a system to transfer items between produce and prepared foods.
RISE OF THE ‘GROCERANT’ The growth of retail restaurants (dubbed grocerants) is among the most exciting super- market trends to impact produce. “The term
PRODUCE BUSINESS / APRIL 2016 / 35 PHOTO COURTESY OF PUBLIX
Retailers can look toward the restaurant pizza, coffee and espresso, juice, sushi, subs industry for guidance on diner preferences since and sandwiches, and barbecue. grocerants compete directly with restaurants Fischer notes produce-centric items — for dining dollars. The National Restaurant including roasted root vegetables, a superfood Association 2016 Restaurant Industry Pocket salad, classic salads (using avocado, tomato, Factbook notes a majority of consumers say chicken and arugula) as well as juices from the they prefer dining out with family and friends juice bar — are extremely popular, and the cold to cooking and cleaning up, look for avors entrée bar was installed to meet increasing they can’t easily duplicate at home, eat a wider customer demand for healthful choices. “We variety of ethnic cuisines, order more healthful partner with Baldor and other suppliers of options than in the past, and turn to technology premium and value-added items to cut down to boost convenience. on prep time in the store.” Technomic’s Hanson points out today’s The Village Food Garden also recognizes its consumers want global and ethnic cuisines entertainment value. Its built-in chef’s station, freshly prepared and “better for you.” They kitchen, and culinary studio host in-store seek exciting avor pro les and expect that demos and cooking classes. Area corpora- level of avor from any away-from-home food tions and businesses participate in lunch-hour establishment, not just traditional restaurants. sessions with a registered dietitian who helps “In the store grocerant, the retailer can employees pick foods that are better for them. change menu items, atmosphere, and employee TV screens as well as a yoga and tness studio assets to match current trends,” says FMI’s add to the Garden’s appeal. But the main draw Stein. “Operations become more ef cient and remains food, with close to a dozen chefs in the shrink goes down.” Village Food Garden and three corporate chefs Grocerant formats vary from market to driving the menu. market. Some New York-based Kings Food Giant Eagle’s Market District is enhancing Markets have sit down areas where customers its seating areas to create a restaurant-style can enjoy items purchased from the salad bar, atmosphere for enjoying its diverse range of sandwich section, Neapolitan pizza counter, ready-to-eat and made-to-order offerings soup bar, or hot bar. A half-height wall sepa- representing a growing number of global rates the dining area from the store. cuisines. Recently, it also opened its rst Shoprite of Greater Morristown, NJ, was independently branded operation, Table by remodeled in 2013 to include a 4,000-square- Market District. foot atrium with a 100-seat, glass-enclosed “Whenever and wherever we can, we tie in food court called the Village Food Garden. As what’s freshest and in season,” explains Dan described by Amanda Fischer, marketing and Donovan, spokesman, Giant Eagle, Pittsburgh. business director, Village Supermarkets Inc., The majority of produce we use in our prepared Spring eld, NJ, and the ShopRite of Greater food departments is procured directly from, or Morristown shoppers choose from hundreds of through, our in-store produce departments. food options from numerous kiosks — including The opportunity to have the largest fresh food an oyster bar, a salad bar, Mediterranean, a pantry, that is, the store, is a unique resource cold entrée bar, a hot bar, foods by the pound, that we use to our advantage.”
36 / APRIL 2016 / PRODUCE BUSINESS First introduced in 2012, Hy-Vee Market Sacramento executive chef Brian Stansberry the-glass departments, usually connected to a Grille restaurants offer a large casual dining to sponsor and co-brand Stansberry’s Flavor challenge the department is trying to resolve. menu that includes vegetable-based salads and Face food truck. Raley’s supplies all the ingre- Ready Pac partners with its chef customers — in sides, served in a contemporary atmosphere. dients incorporated into the fresh and inno- the FMI survey, 88 percent of reporting banners Hy-Vee plans to add to its current 80 Hy-Vee vative dishes cooked in the food truck. The said they employ a corporate executive chef — Market Grille locations. truck travels to public and supermarket events to develop speci c programs and recipes that Rochester, NY-based Wegmans is well-known sponsored by Raley’s. align with their vision. Ready Pac’s in-house for its extensive prepared foods departments In February 2016, Whole Foods Market R&D team also works closely with its partners’ and services. Prior to the 2015 holiday season, launched a new food truck test kitchen at its in-house development teams to bring unique Wegmans created a holiday menu and event agship Austin, TX, store. Using the truck as a offerings to the company’s programs. that featured prepared dishes, including venue for experimenting with new recipes and With the rapid growth of freshly prepared produce-centric side dishes and desserts, collaborating with chefs and supplier partners, foods, foodservice distributor J. Kings Food easy ready-to-prepare demos and dishes, and Whole Foods Market will update the truck’s Service, Holtsville, NY, has seen rapid expan- creative recipes using produce. concept, menu and name every two months sion from traditional foodservice into the retail Wegmans full-service grocerants — Market to explore food trends, seasonal avors, and supermarket business. “Many markets don’t Café, The Pub by Wegmans, Next Door by vendor partnerships. Whole Foods Market have the wherewithal and food safety proce- Wegmans, Amore Italian Restaurant and Wine recognizes the growth potential of prepared dures to prepare foods, so we make their meals Bar by Wegmans — are led by executive chefs foods and expanded select in-store bars and in our production facility,” says Joel Panagakos, and inspired by fresh ingredients sold on-site restaurants with increased prepared foods sales ambassador, J. Kings. “Additionally, our in the stores. Its Rochester test kitchen at Next offerings — including vegan options. It also culinary team, executive chef, and sous chefs Door by Wegmans recently hosted celebrity regularly updates its in-store prepared food are available to help chains redesign their deli chefs for each of three specialty dinners. One selection. cases and teach employees about proper display dinner, for example, celebrated the vegan diet and product rotation.” with a variety of grains, vegetables, and fruits. PARTNERSHIPS PROMOTE PRODUCE Susan Weller, global foodservice marketing Retail-sponsored food trucks are expanding Suppliers can be a valuable resource to manager, U.S. Potato Board, Denver, also sees the de nition of a grocerant. Sacramento, supermarkets. Church Brothers offers recipe the value of partnering. “U.S. Potato Board CA-based Raley’s recently partnered with development and ideation sessions for behind- invites deli and foodservice folks, including
PRODUCE BUSINESS / APRIL 2016 / 37 retail representatives, to our annual food- retail foodservice are those who are prepared to supermarkets consider foodservice to be a top service innovation program at the Culinary roll up their sleeves and work directly with the priority. Growth in prepared foods far exceeds Institute of America,” she says. “Our resources culinary directors of the retail chain. It’s not that of other departments and can help offset include recipes and other materials for food- enough to walk in with produce in hand and say, declines in the center of the store. In fact, service, including the deli department. We “Here is what we sell.” It takes commitment, in many stores, expansion of the prepared currently are conducting a foodservice research work and perseverance. Focusing on long term foods department is taking away oor space study to better understand the foodservice success is key.” from center-store grocery items. FMI’s Stein needs of supermarkets.” notes supermarkets can compete with and beat Muro of Fusion Marketing stresses the RETAIL FOODSERVICE — restaurants on price, in part because of their importance of collaboration among all parties. A FUTURE JUGGERNAUT in-store inventory, food cost structure and “Suppliers who will have the greatest success at Based on its report, FMI concludes most willingness to accept lower pro t margins. Consistent positioning among all depart- ments, including prepared foods, reinforces a store’s brand and values. “Some of the market leaders are doing a better job of creating a cohe- sive store by carrying local or fresh marketing/ merchandising messages across departments,” says Technomic’s Hanson. “Dynamic and infor- mative signage and the marketing of an in-store experience have also been taken to a new level by many supermarket banners.” “I envision better cross-marketing between prepared foods and produce,” says Matorin, of Smartketing. “For example, a store could display fruits and nuts from the produce depart- ment with prepared desserts, or value-added vegetables with a prepared entrée. The typical side dishes currently paired with a prepared entrée could be much better. Also, vegetarians and vegans currently are poorly served, opening the door for better plant-based dishes.” It also pays to offer new and exciting choices. “If I were a produce brand, I would borrow from traditional foodservice strate- gies such as limited time offers and new recipe development,” suggests Fusion’s Muro. “On the supermarket side, retailers need to adopt the data analytics tools used by traditional foodservice to predict demand, estimate supply needs, and better manage shrink.” Pro*Act’s Jacob reminds retailers not to forget about ethnic choices. “We see a growing opportunity in ethnic taste pro les, foods, and ingredients. As a network of local distrib- utors who specialize in produce for foodser- vice, Pro*Act anticipates an evolving role in supplying smaller volume specialty items to the prepared foods department of individual stores,” she says. Observations from the University of Minne- sota report hold true nearly 20 years later. Success takes time, patience and under- standing and requires the same considerations as running a restaurant: service, marketing, organization, decision-making, training, speci cations of products, and equipment. Shopper priorities evolve with time and differ by generation; so too should prepared foods departments. pb
38 / APRIL 2016 / PRODUCE BUSINESS Produce 4 Better.indd 1 3/16/16 4:03 PM More Matters PROGRESS REPORT Industry coalition continues to move the needle in the produce department.
BY MINDY HERMANN
he bins and shelves of many produce Industry support grew from 60 produce they see the More Matters logo on packaging departments are graced with a companies and commodity boards in the early and in stores are more likely to buy fruits and rainbow of fruits and vegetables 1990s to more than 400 donors and licensees vegetables; and More Matters on a product atop a garden-green stick gure. representing growers, shippers, packers, proces- connects that product to health,” says Eliz- is logo, belonging to the More sors, merchandisers, commodity boards, trade abeth Pivonka, president and chief executive TMatters campaign of the Produce for Better associations, food industry organizations, of Produce for Better Health Foundation, Health Foundation (PBH), has been guiding health professionals, and supermarkets. Hockessin, DE. American shoppers to eat more fruits and “Over the course of 16 years [as vice pres- e More Matters campaign encourages vegetables for almost a decade. Nearly 25 ident of produce and oral at Schnucks], I industry partners to display its logo on pack- years after the creation of the rst nationwide worked with PBH on both 5 A Day and aging, signage, and promotions; promote produce campaign, More Matters continues More Matters,” says Mike O’Brien, vice pres- both National Nutrition Month (March) and to impact the fruits and vegetables Americans ident, sales and marketing, Monterey Mush- Celebrate Fruits & Veggies — More Matters put in their cart and on their plate. rooms, Watsonville, CA. “Increasing produce Month (September); connect through the consumption for the health of our nation is Internet and social media; work with super- FROM 5 A DAY TO MORE MATTERS one of my passions.” market dietitians; adopt a local school; utilize PBH was formed in May 1991 in a part- “Oppy has supported PBH since the begin- PBH toolkits; and attend the PBH Annual nership with the National Cancer Institute ning,” notes Brett Libke, general manager, Conference. to co-sponsor the new 5 A Day for Better East Coast, e Oppenheimer Group (Oppy), “Retailers are key in getting the message Health program. In 2007, the naming of a Vancouver, Canada. “I became a member of to consumers through the More Matters logo new lead government partner, the Centers for the PBH board a few years ago, and it’s a great and store signage,” says O’Brien of Monterey Disease Control & Prevention (CDC), led initiative to be part of.” Mushrooms. “Placing the logo on promotional to a new name — Fruits & Veggies - More tools such as recipes and product usage signs Matters — and the simultaneous creation of WORKING WITH INDUSTRY also helps grow consumption.” the National Fruit & Vegetable Alliance, a More Matters seeks to motivate shoppers “We use the More Matters logo on every group of health organizations, government to overcome challenges preventing them from package, box, and bag, plus our website and agencies, and produce industry groups working buying and eating more fruits and vegetables. traditional and online marketing materials. together to increase access to and demand e campaign reaches out with industry- and We also use the logo on company presen- for fruits and vegetables. PBH serves as the market-related packaging and materials, tradi- tations,” explains Kaylyn Bender, manager brand manager, and the CDC oversees scien- tional and social media and outreach to health of marketing, Market Fresh Produce, LLC, tic decisions, More Matters criteria, and key inuencers and others. Nixa, MO. “We want to show 100 percent health messages. “Our research shows that moms who say support of this great program. Also, recognition
40 / APRIL 2016 / PRODUCE BUSINESS of the More Matters program helps support bananas, apples, and oranges, at all meals while our reputation of providing quality products. adults (ages 18 to 44 years) are eating more Quality makes a big dierence in produce.” berries, bananas, and other fruit at breakfast. “We place the More Matters logo on all of “We made good progress and have a posi- our consumer packaging in order to support tive outlook for fruit and vegetable consump- the cause and the many health attributes of tion in shoppers younger than 40 years of age the fruits inside the package,” says Roger but consumption is down in shoppers older Pepperl, marketing director, Stemilt Growers, than 50, a trend we are looking to reverse,” Wenatchee, WA. says Pivonka. e program’s consumer website (MoreM- atters.org) encourages consumers to look for STRATEGIES AND GOALS the More Matters logo, visit the website for PBH follows a three-year strategic plan information, start good eating habits early in to help the organization create public value, life, and use social media to stay connected fulll its mission, meet mandates, and serve with the program. its stakeholders eectively, e§ciently, and “Our primary target audience is moms with ‘PRESCRIBING’ PRODUCE responsibly. e PBH executive committee children ages 10 and younger, so inuencing Cross-promoting More Matters throughout reviews this plan each year and makes neces- Mom is our key area,” says Pivonka. “We also departments increases the number of shopper sary adjustments for continued success. Goals oer materials for children on both MoreM- touchpoints with the More Matters message and strategies for 2016 include expansion for atters.org and FoodChamps.org, our website and the pharmacy is a natural partner. “In PBH’s industry and professional partners: designed specically for kids ages 2 to 8. Here, conjunction with our pharmacy team, the dieti- • Provide legitimate health and/or struc- they can have fun with games, coloring sheets, tians at e Little Clinic/Kroger provide More ture/function claims about fruits and activity pages, and kid-friendly recipes while Matters recipes and tips on select pharmacy vegetables. learning interactively about fruit and veggies.” prescription inserts,” says Allison Kuhn, MS, • Expand beyond supermarket dietitians RDN, LD, director, retail dietetics, e Little to include other dietitians and consumer SOCIAL MEDIA SELLS Clinic, Cincinnati. inuencers who can help with messaging. “Since social media is one of the best ways “Giving our customers easy access to • Target C-stores, drug stores, and value/ to communicate the meaning of More Matters fruit- and veggie-focused recipes makes dollar stores as venues for message — and PBH does such a great job developing healthy eating more convenient, and inspires dissemination. fun, relevant content — we took the oppor- customers to interact more at the pharmacy • Implement a grassroots advocacy plan tunity to integrate messages on our many level. We focus on top chronic conditions, that encourages consumers to spread social media platforms,” says Libke of Oppy. including diabetes, high cholesterol, depression, the message and includes promotion of “We co-host a Twitter party that aligns More and hypertension, enabling us to provide fruit online giving. Matters with one of our newer brands, Outra- and veggie messaging to those shoppers who • Celebrate the 25th anniversary geously Fresh. It’s the perfect opportunity to need it most. To date, nearly 2 million patients “Stemilt truly believes in More Matters introduce our new line of greenhouse snacking received this messaging, which contributes to and its work,” says Pepperl. “ e goals of items to consumers looking to integrate more medication adherence. In addition, the use PBH and More Matters align well with our produce into their family’s meal plans.” of our More Matters logo corresponds with marketing goals and values. Everything we do Stemilt’s Pepperl also recognizes the value our PBH-branded produce bags and select with PBH supports our direct-to-consumer of social media. “We have a page on our website private label products, serving to unify fruit marketing eorts and products. e team at that links to the More Matters website. We also and vegetable messaging throughout the store.” PBH is incredible and being a partner is truly a host an annual Twitter party with PBH where win-win scenario. Unlike many “sponsorships,” we talk about a topic related to fresh fruits. SUCCESS CONTINUES the benets PBH provides are long-lasting and Last year, our topic was smoothies. We fold the More Matters is moving the needle in the well-thought-out, and support the cause and More Matters program into our social pages, produce department. “Fresh fruit and vegetable goals of our company.” and sponsored recipes and content through the consumption is going up slowly and steadily,” “Being a More Matters partner opens the More Matters social network, which reaches says Pivonka of PBH. “ e percentage of doors for exciting conversations with our retail an impressive number of consumers.” moms likely to purchase products with the partners as well as those we’d consider compet- PBH recognizes the role played by industry Fruits & Veggies — More Matter logo has itors, except for the fact that we’re united in members in sharing More Matters. Yearly, it risen to 49 percent, up from 39 percent in 2007, the goal to build fruit and vegetable consump- names industry Champions and Role Models and 49 percent of moms are very/extremely tion,” says Libke of Oppy. “ e More Matters who best share More Matters in traditional and motivated by More Matters (compared to promotional umbrella can move a high volume social media, advertising and packaging, and 24 percent in 2007). PBH exceeded its goals of produce while educating consumers about promote National Fruits & Veggies — More for website visits, opt-in email participants, easy ways to prepare and serve more fruits Matters Month. PBH also encourages partners industry role models, and social media. and vegetables.” to “like” its Facebook page, “follow” on Twitter Vegetable consumption is up among Mike O’Brien of Monterey Mushrooms and Pinterest, “retweet” and “repost,” join More children and young adults, although some- notes, “having the industry come together in Matters Twitter parties, as well as blog about what down overall. Children of all ages are a noncompetitive way grows the pie, and we More Matters. consuming more fruit, particularly berries, all get a bigger piece.” pb
PRODUCE BUSINESS / APRIL 2016 / 41 The Continued Spread OF GUACAMOLE Positioned to take the crown as king of dips and condiments in produce.
BY CHRIS AUMAN
uacamole has become ubiquitous consumer. But guacamole is not strictly a dip. sity among many types of cuisine,“ says Kristyn in grocery stores and homes across Clever cooks and foodies devised a variety of Lawson, vice president of sales for Good Foods the United States. Delicious, uses for it. ey spread it on bread and use it Group, a brand of preservative-free vegetable versatile, spreadable, and dippable to top salads or pasta and nd other new ways dips, guacamole and juice products, based in — “guac” has become a staple to incorporate it into their diets. Pleasant Prairie, WI. “Consumers enjoy quality Gfood item for grilling and get-togethers, and While it’s easy to make at home, prepared prepared guacamole for its convenience and it comes by its health halo eortlessly. guacamole in the produce section is a segment the ‘better-for-you’ condiment choice.” e Hass Avocado Board Hass reported in that tremendously grows. ere are a number of e list of dishes made better with a dab a Washington Post article that Hass avocados ways in which retailers can promote prepared of guac is expanding. According to Lawson, comprise more than 95 percent of all avocados guac. Successful cross-merchandising and in addition to topping salads and being rolled consumed in the United States, which soared eective promotional tools will alert shoppers into wraps, it is added to a variety of appetizers to a record of nearly 1.9 billion pounds (or to its presence in produce departments. Recipe such as deviled eggs, potato skins, tacos, even some 4.25 billion avocados) in 2014 — more ideas and POS tools can educate them on new egg rolls. It’s also a tasty addition to pasta than double the amount consumed in 2005, ways to enjoy it. and grilled sh dishes, fajitas, soup and what- and nearly four times as many sold in 2000. ever else the creative home cook feels like Avocados, garlic, salt, and lemon juice — GROWING CONSUMPTION TRENDS concocting. these few ingredients comprise the basic guac “Avocado consumption continues to grow “Growth of avocado consumption during recipe. What gets dipped into it is up to the due to its broad appeal for nutrition and diver- the past few years has been phenomenal,” notes
42 / APRIL 2016 / PRODUCE BUSINESS Avocados F Mexico.indd 1 3/15/16 11:45 AM Dionysios Christou, vice president marketing at Del Monte Fresh Produce based in Coral Gables, FL. “ere is a large increase in healthy snack consumption, and prepared guacamole is ideally positioned to address today’s consumer needs.” Samantha McCaul, marketing manager for Concord Foods in Brockton, MA, witnessed the growing popularity as well. “Today, consumers are more familiar with guacamole,” says McCaul. “ey are used to seeing it on restaurant menus and on TV and websites. In addition, the avocado commissions have done an amazing job promoting the avocado and its various uses, including guacamole. It really helped spread the appeal throughout the country.” “is continuous supply of good quality in kind. “Retailers are very committed to Work by marketing associations such as avocados with the right oil content has allowed their support of avocados and some found an Avocados from Mexico and the California retailers to prepare in-store guacamole with additional prot center by oering delicious Avocado Commission helped raise the prole Fresh Avocados from Mexico.” e health and nutritious fresh avocados in a convenient of avocados in the U.S. According to Maggie benets also make them appealing. Avocados form that is not preprocessed but made fresh Bezart Hall, the vice president of trade and have naturally good fats, are cholesterol-free that day.” promotion for the Dallas-based organization, and are packed with 20 vitamins and minerals. As T.W. Bacon, senior brand manager for Avocados from Mexico, the fruit’s year-round Avocados from Mexico is a big reason Fort Worth, TX-based Wholly Guacamole, availability is just one of many reasons for its consumers are aware of these facts and, bluntly states, “People love guacamole. We are popularity. according to Bezart Hall, retailers responded seeing more consumers eating guacamole in the foodservice space and then trying it when n KEEPING IT COOL they nd it in the store. ey are pleasantly surprised when they realize that there are great- tasting solutions that don’t have preservatives in the product. We also know that consumers are looking to get more avocado in their diets, and guacamole is one of the best and most fun ways to do so.”
A CROSSMERCHANDISING NATURAL Dips and spreads are just one part of the equation. ey need to be paired with some- thing complementary, and retailers can propel the suggesting. Lawson at Good Foods Group recommends secondary ice bins to build incre- mental sales. “Also, building chip, salsa, fresh
PHOTOS COURTESY OF GOOD FOODS GROUP limes and margarita displays drive shoppers to add items to their baskets around the allure Retailers who capitalize on the popu- Avocados from Mexico works with of good guacamole. In addition, with the larity of avocados will see sales increase by select retailers to offer customized refrig- exciting new avors and size options that we employing some key merchandising strat- erated units for placement in the produce are launching, retailers are enjoying building egies. Guacamole is best served fresh, so department and other areas around the displays with new avors and new sizes.” refrigeration is critical to preserving shelf store to take advantage of tie-in oppor- “We see great displays across the country life. Kristyn Lawson, vice president of sales tunities. Maggie Bezart Hall, the vice built around guacamole — including tortilla for Good Foods Group based in Pleasant president of trade and promotion for the chips, pretzel chips, etc.,” says Bacon. “What- Prairie, WI, offers this advice to retailers: Dallas-based organization, Avocados from ever it takes to deliver an easy solution for the “To achieve the freshest-tasting product Mexico, recommends signage to promote consumer is key to success with cross-merchan- while enjoying a generous shelf life, the the freshness of the product and tie-in dising opportunities in this space.” best products utilize HPP.” (High Pressure items such as veggies, chips and drinks. To increase avocado sales across the board, Processing provides the best taste and “Advertising on a cyclical basis helps to retailers need to “think beyond guacamole,” allows for the highest level of food safety.) promote the availability of product to help says Robb Bertels, vice president of marketing, “No additives or preservatives are needed consumers plan for their lunch snacks and Mission Produce in Oxnard, CA. “Guac is an by utilizing HPP.” weekend entertainment.” pb entry point for consumers. ey know it, like
44 / APRIL 2016 / PRODUCE BUSINESS LGS.indd 1 3/16/16 3:50 PM it and understand it. e real challenge is to fashioned way — chips and guac,” says Bacon, “Additional usage and con- suggest additional usage ideas for the typical “But we are seeing consumers ‘guac-ing’ in a consumer. Lighter avocado users need sugges- number of dierent ways. Using guacamole as a venience ideas generally tions for adding avocados to sandwiches and topper for burgers and hot dogs is one example, spur more sales. Showing salads. Using packaging to carry recipe ideas, or even using our Wholly Guacamole Avocado and POS materials to show all the dierent Verde Dip as a salad dressing. Consumers are options with whole fruit in ways avocados can be used is a natural progres- becoming more savvy and nding new ways sion for increasing consumption.” to guac all of the time.” a variety of sizes, ripe and As consumers experiment with guac, “Additional usage and convenience ideas ready to eat, and bagged retailers can also help them think outside of the generally spur more sales,” says Bertels. chip bowl. “e primary usage is still the old “Showing options with whole fruit in a variety fruit with bulk fruit, gives consumers options. — Robb Bertels, Mission Produce
of sizes, ripe and ready to eat, and bagged fruit with bulk fruit, gives consumers options. Also cross-merchandising with ingredients to make guacamole, or with prepared guacamole in the store gives consumers even more options on usage.”
GETTING TO KNOW GUACAMOLE ere are a number of ways innovative retailers are familiarizing consumers with prepared guacamole products. For Good Foods Group, one tactic includes a variety of
n RESPONDING IMPULSIVELY TO CONVENIENCE The grab-and-go segment continues to rise, and prepared guacamole sales are increasing right along with it. Portable and healthy, it appeals to time-pressed shoppers looking for a quick lunch, dinner or snack solution. “They are becoming a staple in the kitchen,” says Kristyn Lawson, vice president of sales for Good Foods Group based in Pleasant Prairie, WI. “In addition to our 2.5-ounce single-serve containers, we launched a new grab- and-go snacking product that is gluten free and only 200 calories with delicious corn tortilla chips and our famous Table- side Chunky Guacamole.” T.W. Bacon, senior brand manager for Fort Worth, TX-based Wholly Guacamole, says consumers’ responses to guacamole product are overwhelmingly positive. “Our Wholly Guacamole Minis were IRI paceset- ters for 2014 and command some of the highest repeat rates in the category. This segment of our business has continued to grow rapidly and will definitely be a part of our growth strategy for the brand in the years to come.” pb
46 / APRIL 2016 / PRODUCE BUSINESS McCaul recognizes this as well, “Super — avocados are a natural for communal eating. “We promote display Bowl is the No. 1 event for avocado/guacamole Beyond that, you can’t avoid seeing avocado consumption. However, there are many other imagery in restaurant advertising, and that also contests to encourage the great occasions as well, where we see sales spike. spurs additional consumer use.” sale of specic products Some of these events include Cinco de Mayo, By capitalizing on the popularity and high Fourth of July and tailgating season, which runs prole of avocados, as well as focusing on the and gain attention from from September through November.” healthy aspects and versatility of guacamole “Avocados have a tremendous ‘get together’ as a dip, spread and topping, retailers can take consumers.” quotient,” notes Bertels at Mission Produce. easy advantage with cross-merchandising — Dionysios Christou, Del Monte Fresh Produce “Whenever there is a gathering — to watch and simple POS tools to increase sales in the sporting events, for a holiday, or a house party produce department. pb promotional tools. Lawson says, “is year, we are excited to launch new consumer marketing that includes digital coupons, consumer engagement events, social media contests, and building our community with outreach programs to support healthy eating, active lifestyles and enjoying the good life through Good Foods Tableside Guacamole.” “Sampling is a great way to get the consumer to interact with guacamole in stores,” says Bacon. “POS around holiday times is key to category success as well. We see a lot of great work in stores around the country for game day and summer gatherings, which remind consumers about the wonders of guacamole.” McCaul also sees the positive results of POS displays. “Retailers familiarize consumers with Concord Foods products using POS displays,” she says. “In addition, we run promo- tions annually, which are featured on our pack- aging. A great number of exciting guacamole recipes can be found on our website, such as a layered ranchero dip, a summer pizza and tiny guacamole sandwiches.” According to Christou, Del Monte Fresh Produce provides a number of POS materials to support retailers in their avocado programs. “We promote display contests to encourage the sale of specic products and gain attention from consumers. Using consumer insights, we also establish category management programs to help extend a retailer’s growth beyond industry averages.”
MORE THAN A SUPER BOWL SNACK Guacamole sales spike around Super Bowl Sunday. In fact, Americans consume nearly 80 million pounds of avocados on this unocial national holiday. Much of that is in the form of guacamole. Cinco De Mayo is another holiday that is growing in popularity with Americans regardless of their ethnic heritage. Lawson believes any holiday meal is made better with guacamole. “Every holiday is enjoyed across the U.S. with guacamole including Fourth of July, Fathers Day, Halloween and more.”
PRODUCE BUSINESS / APRIL 2016 / 47 Canadian Retailers Share 6 Insights To Increase Sales
PHOTO COURTESY OF LOBLAWS From promoting consumption with marketing to generating excitement in store, these 6 retailers share their success stories. BY CAROL M. BAREUTHER, RD
en buck’s worth of produce in the U.S. will currently cost Cana- for Better Health Foundation. dian shoppers the equivalent of $14. Currency devaluation, e distinctions are worth noting. “It’s subtleties, nothing massively combined with longer-term logistical challenges, and the sheer signicantly dierent,” explains Ron Lemaire, president of the Ottawa, need to import — since 40 percent of the Great White North’s ON-based Canadian Produce Marketing Association (CPMA), which landmass is in the untillable Arctic Circle — all contribute to in January 2015 launched its Half Your Plate initiative. Tsteep food prices. is scenario certainly doesn’t sound like a recipe for e CPMA’s Half Your Plate marketing eort, which was developed robust produce sales. Yet, Canadians trump their American counterparts in partnership with the Canadian Cancer Society, the Canadian Public when it comes to fruit and vegetable consumption. Canadian retailers Health Association and the Heart and Stroke Foundation, encourages play a crucial role in this factor. How these grocers promote produce consumers to ll half their plates with fruits and vegetables. e Half oers inspiring ideas for their U.S. neighbors. Your Plate message is advertised via social media, produce packaging Nearly 40 percent of Canadians reported eating fruit and vegetables and in supermarkets across Canada by the 91-year-old, nonprot ve or more times a day in 2014, based on data from Statistics Canada, organization and its members. e organization will soon announce which is part of the government’s department and agency website based its plans to encourage a 20 percent increase in produce consumption, in Ottawa, Ontario. By comparison, only 24 percent of Americans ate or 1 additional serving of fruits or vegetables daily by each Canadian, 1 cup (2 servings) or more of fruit, and only 13 percent ate 1.5 cups (3 by 2020. CPMA members, which include everyone from growers to servings) or more of vegetables daily. retailers, are responsible for 90 percent of all the fresh fruit and vege- What’s more, while Canadians’ intake of produce has remained the table sales in Canada. same for the past several years, per capita fruit and vegetable consump- Canada, like the U.S., does have a number of tremendous food tion has declined 7 percent over the past ve years in the U.S., according retailers, from major supermarket chains and key independents to to the State of the Plate, 2015 Study on American’s Consumption of Fruit small secondary and tertiary retailers. However, in the face of unique & Vegetables, published by the Hockessin, DE-headquartered Produce challenges, each Canadian retailer developed a way to creatively source,
48 / APRIL 2016 / PRODUCE BUSINESS CPMA.indd 1 3/22/16 1:54 PM PHOTOS ON LEFT COURTESY OF METRO RICHELIEU PHOTO BELOW COURTESY OF NATUREFRESH FARMS
Sbrocchi. “However, Canadians have more dedicated space to execute promotions.” At Longo Brothers Fruit Markets, Inc., a chain based in Vaughan, Ontario with about 30 locations, produce penetration is higher serve and ultimately cater to their patrons’ like the U.S.,” explains Joe Sbrocchi, vice pres- than for any other departments in the store, fresh produce needs. A good example is Cole- ident of business development and strategy and it shows in terms of space dedicated to mans, a 12-store chain based in Corner Brook, for Mastronardi Produce Ltd, in Kingsville, fruits and vegetables. Newfoundland. Ontario. “For example, Canadians who move “Our stores range from 35,000- to 50,000- “Twenty years ago, we were really fruit- and here from elsewhere such as East Asia and the square feet and produce is about a third of vegetable-challenged,” says Byron Bellows, Middle East are more likely to maintain their this or 10,000- to 15,000-square feet,” says produce buyer and merchandiser. “Fresh cultural produce-centric eating habits rather Mimmo Franzone, director of produce and produce was hard to get, expensive and people than assimilate.” oral. “It’s the largest department in the store. obviously weren’t eating enough. I refused On the supply side, Jane Rhyno, director of e linear square feet have pretty much stayed to throw up the white ag. Today, we have a sales and marketing for Highline Mushrooms, the same over the past 60 years, but vertical streamlined sourcing system that provides us in Leamington, Ontario, noticed this trend. space increased with the use of multi-decks.” with three deliveries a week from the Ontario “Exotic mushroom varieties are exploding in More space translates into more SKUs. Terminal. We have a buyer on the market demand as new populations come in,” says “On average, we carry 350 conventional and whose job is to nd us the freshest and best Rhyno. 120 organic SKUs, and the organics is private quality produce. He has to, or it won’t make the On the retail side, Frank Pagliaro, vice pres- labelled with our ‘Organic Select’ brand and is trip. e trip is a two-day drive from Ontario ident for produce buying at the Brampton, displayed in a mini produce store within the and a 19.5-mile ferry ride to our distribution Ontario-headquartered Loblaw Companies department,” says Geo Lander, distribution center. We are becoming so good at this [travel Limited (Canada’s largest food retailer with centre and produce manager for Pete’s Fine pattern] that we really can brag about our more than 2,300 stores under 22 regional Foods, a two-store chain based in Halifax, freshness and quality.” and market segment banners), sees a shift NS. “Organics represent 12 percent of produce Assortment, sourcing quality amidst in customer preference for more multicul- sales, so it’s de nitely an important and price challenges, demand for locally-grown, tural food products. “is is true whether it’s growing segment for us.” unique shopping habits, educational needs and because they remind a new Canadian of home A resounding refrain from Canadian community involvement are subjects common or because of the increasing exploration of retailers is the practice of catering to ethnic to all retailers. It is these key areas where Cana- tastes and experiences,” says Pagliaro. “We diversity among shoppers by customizing oer- dian retailers developed ways to creatively use provide a wide variety of products to suit the ings at store level. For example, Lander says these opportunities to push fresh produce. many dierent tastes of our customers. at he stocks a greater volume of Asian vegetables said, we still nd our best-selling items to and fruits such as pummelos at the chain’s 1. DIVERSITY MEANS ONE be what you might consider staples such as downtown Halifax location, while at the SIZE DOESN’T FIT ALL bananas, grapes, apples and tomatoes.” Bedford store on the outskirts of town, items Canada’s ethnic diversity drives higher fruit U.S. and Canadian retailers have similar like Lebanese zucchini and purple, egg-size and vegetable consumption. “Canada tends to promotional programs, such as seasonal in ‘Violetto’ artichokes cater to shoppers with a be more of a mosaic versus melting pot society and out campaigns, according to Mastronardi’s Mediterranean/European ancestry.
50 / APRIL 2016 / PRODUCE BUSINESS PHOTO COURTESY OF THRIFTY FOODS
ping trips, purchases and ultimately greater produce consumption.”
2. A SPOONFUL OF FLAVOR MAKES HIGH PRICE EASIER TO SWALLOW e sheer number of U.S. retailers can mean widespread channel distribution, which can be a challenge for suppliers. In addition, produce suppliers say with so many U.S. retailers dealing with internal reorganization or consolidations it can sometimes create challenging multiple levels of communication and decision-making. ese hurdles aren’t the same in Canada. Here, there are ve major retailers with greater ability to run coast-to-coast programs. Plus, according to the Canadian trade representative for the Maitland, FL-based Florida Tomato Committee, Brad Brownsey: despite the size of the country, 75 percent of all Canadians live within 100 miles of the “e Quebec market is dierent from needs in each of our supermarkets, including Canadian/U.S. border, and the vast majority of Ontario market,” explains Bernadette Hamel, when it comes to selling the right produce. all Canadians reside in 33 major metropolitan vice president, national procurement, produce, is translates into increased sales, because cities across the country making distribution at Metro Richelieu Inc., a 600-plus store chain we meet our customers’ needs.” within the country easier. However, importa- headquartered in Montreal, Quebec. “As well, CPMA’s Lemaire sums this concept up tion is the mainstay of produce procurement. many communities are found in both provinces. perfectly: “e right oering at the right store “Challenges, like climate change, denitely We adapt our oerings to the communities’ at the regional level will bring repeat shop- redened how we work. It gave us the oppor-
PRODUCE BUSINESS / APRIL 2016 / 51 tunity to diversify our supply sources, when in Longo’s steps. our regular suppliers couldn’t help us meet “We work with our grower partners to help our customers’ demand,” says Metro’s Hamel. introduce and test proprietary varieties. ey e other big challenge, especially recently, provide us with a small volume to test, we give is the dramatic decrease in the Canadian dollar, them feedback as to how customers react, and which led to higher prices for produce, and in turn, we get an exclusive to the market,” therefore, lower demand from consumers. explains Longos’ Franzone. “Canadian retailers are often challenged “We did this last year with unique grape to oer a competitive market basket to their varieties in partnership with the [Shafter shoppers without causing sticker shock,” says CA-based] Grapery. We merchandised the Jim DiMenna, president and chief executive of fruit in a place we called ‘e Flavor Corner’ Red Sun Farms, in Kingsville, Ontario. for two months with signage that encouraged Loblaws’ Pagliaro says customers tell him customers to try the six new exciting varieties,” that price can be a major barrier to living a adds Franzone. healthier lifestyle. “We’re hoping to mitigate that barrier through the No Name Naturally 3. LOCAL MEETS LOCALE Imperfect brand. It’s fresh, delicious produce e Buy Local movement is a hot topic. at a great value — up to 30 percent less than “is is not a new trend, and we have seen traditional produce. We launched the brand the same strategy of featuring the grower at last year with limited distribution and have retail in the U.S. as well,” says Chris Veillon, received tremendous feedback and results. director of marketing for NatureFresh Farms, Given the early success, we are expanding in Leamington, Ontario. “However, there is a the program both in number of stores and in greater disconnect due to distance/proximity products available.” of where some product is grown.” Private label programs are more prevalent Loblaws’ buying strategy gives priority to The Spring Launch Program from the Ontario Green- house Vegetable Growers offers funding for flyer ad among Canadian retailers and retailers will local and regional fresh products when the placement and provides the key Canadian retailers choose specic varieties and levels of quality to safety, quality, availability and value line up with media buy and point-of-sale materials to help dierentiate themselves, according to suppliers according to the retailer’s specs. merchandise Ontario grown tomatoes, peppers who sell in both the U.S. and Canada. A good “We launched the ‘Grown Close to Home’ and cucumbers. example of this is the marketing program program to highlight and market locally grown recently launched by Loblaws around its produce in our stores nearly a decade ago. 4. ANSWER THE DAILY CALL, President’s Choice-brand produce. During peak growing seasons, approximately ‘WHAT’S FOR DINNER?’ “We work closely with our vendors to 40 percent of produce in our stores is Cana- e Canadian customer shops often, daily ensure these products have an enhanced avor dian-grown. However, we are always looking to three to four days a week, with less of a prole. Once a customer tries it, we know for ways to increase the amount of Canadian tendency to pantry ll, and it shows in greater they’ll love it. Each month we are focusing produce in our stores, and work closely with produce consumption, says rifty Food’s on a new product to highlight and share with our growers to identify trends and invest in new Mockler. “Because of this focus on fresh, we Canadians,” says Loblaws’ Pagliaro. commodities to support consumer demands,” moved produce from the perimeter to right Flavor is something that is easier for Cana- says Loblaws’ Pagliaro. inside the front door at our new locations. And, dian retailers to assure in some products due Locally-grown isn’t a seasonal, but instead the rst thing customers see is a display with a to sourcing options not available to their U.S. a year-round program at Longos. “We feature meal solution. Shopping lists may have meat, counterparts. local as part of our ‘Taste Ontario’ program. fruit and vegetables, but it’s no more specic “Mangos don’t need to hold up under a hot Canadian-grown mushrooms and green- than that. It’s our job as a retailer to provide water treatment as they do before entering the house-grown long English cucumbers, for those ideas in a short amount of time. For U.S., so the fruit can hang on the tree longer example, are available year-round. In the winter, example, we might have a nice big display of and is more avorful,” says Michael Mockler, it’s apples and storage crops like potatoes. From Peruvian asparagus with garlic, lemon, Roma produce director at rifty Foods, a 26-store May to October, it’s a variety of fruits and tomatoes and pasta. e shopper sees it right chain headquartered in Victoria, BC, that was vegetables that total 60 to 75 percent of our as they walk in-store and it answers their ques- purchased in 2015 by Sobey’s Inc, Canada’s fresh produce oerings, and in the fall it’s items tion, ‘What’s for dinner?’ ” second largest retailer with more than 1,500 like hard squash. We spotlight this produce At Colemans, the chain’s Registered Dieti- stores under a dozen-plus banners. with signage and point-of-sale that tells the tian Nutritionist demos the healthy family “We ran a display contest for Ataulfo grower’s story,” explains Franzone. meal featured in the retailer’s weekly yer mangos last year under the theme ‘the fruit Local and locale intermingle at Pete’s. “Six in-store each Friday between 2 and 4 p.m. is so juicy you need to eat it in the bathtub.’ months of the year, we get much of our produce Ingredients used are among those that are One of our produce managers integrated a full from farmers in the Annapolis Valley. e rest price-promoted. scale tub with mannequin into the display. It of the year, we feature what’s in season. For Meal solutions are part of a multilayer coor- really drew attention and sales,” says Mockler. example, we do huge displays of asparagus dinated eort at Longos. “We go in depth Yet in other products, such as grapes, in the spring when it comes into season in about a category like berries in an issue of our retailers on both sides of the border can follow California,” says Pete’s Lander. quarterly magazine, Experience. is includes
52 / APRIL 2016 / PRODUCE BUSINESS PHOTO BELOW COURTESY OF PETE’S; PHOTO ON RIGHT COURTESY OF COLEMANS
Local and locale intermingle at Pete’s. Six months of the year, the “Colemans at the Gardens” event, Chef Maurizio shows Girl Scouts a series of store gets its produce from farmers in the Annapolis Valley. The rest safe food handling tips. of the year, the store features what’s in season.
education about season, varieties and usage merchandise Ontario grown tomatoes, peppers eight to 10 as part of his Produce Passion suggestions. Recipes are simple meal solu- and cucumbers. training. Staers learn everything from how tions that oer customers a dierent idea from Displays can take on the feel of in-store to trim and crisp to how to answer customers’ how they may normally enjoy the product. For theater at many Canadian retailers. A great produce questions. Mockler says this process example, we did a Berry Quinoa Salad with example of this is at Colemans, where public not only boosts produce sales, but creates chain strawberries, Spring Mix, sliced almonds and relations and event planner, Judy Bennet, ambassadors. quinoa. A lot of our merchandising activities orchestrated an awesome launch event for To assist all Canadian retailers, the CPMA in store such as displays, promotions and recipe ENZA’s Envy Apple a few years ago. is launching a new educational drive. Sta ideas are driven from the magazine. It’s a 360 “Large posters supplied by the ENZA new to the industry can earn the Produce eect and meal solutions have become huge people featured graphics that depicted a Basics certication, which has been online for us.” beautiful woman holding the apple. To have since December 2015. Ongoing education some fun with this, we selected three of our comes in the form of a Produce Essentials 5. EDUCATION CREATES largest stores to actually execute an unveiling training credential. is launches this month INSTORE THEATER of the new apple with a large white sheet over at CMPA’s annual convention. ere’s value in a clean-store policy where the apples. In those three stores we hired a excessive non-produce items don’t detract from model to dress up like the lady in the poster 7. PRODUCECENTRIC shoppers’ clear line of sight to the enticing complete with long black gloves, a large brim COMMUNITY PARTNERSHIPS colors and textures of the produce department, black hat and red blouse. e envy apple Metro has made healthy eating and the says CPMA’s Lemaire. “At the same time, display was huge and produce managers were well-being of its customers a company priority, shoppers today are hungry for information. instructed to pull the sheet at exactly at 10:30 a concern that is clearly expressed in the retail- Canada’s retailers have become creative in a.m. e model stood in front of the display er’s Corporate Responsibility Plan. As such, providing this.” posing with the apple in her hand. en, Metro’s Health and Wellness Program rests on Loblaws, for example, focuses its attention she gave out samples of the apples to customers four pillars. One of these is promoting healthy on key events or programs throughout the year. and sampled a salad made with Envy apples,” eating within the community. One is a tropical event, where marketing and explains Bennet. “Our various initiatives are integrated into store displays drive awareness of new products Regardless of which side of the border the a global approach. at is, we oer nutritional and sales. retailer is on, what makes a program successful attributes, in-store tips and recipes for our Suppliers are quick to assist retailers. For is execution. many product lines, both on our website and in example, the Ontario Greenhouse Vegetable “Partnering with retailers that are the circular, as well as our Green Apple School Growers, in Leamington, Ontario, kicked willing to try new things and work Program. In this program, Metro awards 1,500 o its growers’ tomato and pepper produc- together to execute a program brings forth grants, each worth $1,000, to elementary and tion with its Spring Launch Program. is success,” says Mastronardi’s Sbrocchi. high schools in Quebec and in Ontario for program oers funding for yer ad placement Beyond this, many retailers rely on sta for carrying out projects aimed at eating more and provides the key Canadian retailers with shopper education. Mockler at rifty Foods fruits and vegetables for young people,” media buy and point-of-sale materials to help oers three four-hour sessions for groups of says Hamel. pb
PRODUCE BUSINESS / APRIL 2016 / 53 From Carolina peaches to Georgia blueberries, The Southern F r u i tSouth diversifies. Supplies BY BOB JOHNSON
trawberries grown in the South, THE PEACH STATE OF MIND Pearson Farm, Fitzgerald Fruit Farms, Taylor aside from national producer Peaches are so important in southern Orchards, and Dickey Farms. “In Georgia, we Florida, are largely sold locally, agriculture that larger growers in Carolina call the Freestone the peach that made Georgia many of them at roadside farm and Georgia plant dozens of varieties in their the Peach State.” stands or u-pick farms. orchards, in order to ship fresh picked, tree Genuine Georgia ships Freestone varieties SMuscadine grapes are such a closely held ripened fruit over the longest possible period from the middle of June through August, but regional secret that most Yanks would not of time. extends the season with 30 to 35 peach vari- even know how to properly begin eating them. “Our peach season lasts around 16 to 17 eties, each lasting no longer than 10 days to But when the peaches, blueberries, and weeks,” says Chalmers Carr, owner-operator of three weeks, according to Lane. melons of all sorts are ripe and ready to pick, Titan Peach Farms, Columbia, SC. “We start ere is a regional pride in the peaches southern fruit lls the shelves of supermarkets around mid-May and continue into the second brought forth from orchards in southern soils, everywhere west of the Mississippi, including week in September. We grow more than 50 and sunny but humid climate. into Canada. commercial varieties of peaches.” “If you eat a good southern peach in June “I would say that more than half of the With more than 5,000 acres, Titan is the or July, the juice runs down your chin,” says country is serviced by spring and summer largest peach grower in South Carolina, and Benjie Richter, co-owner of Richter and Co., southern fruits and veggies once Florida begins the second largest in the country. Charlotte, SC. “We promote southern peaches. to transition north to Georgia, South Carolina “ere’s probably more than 100 varieties e South Carolina and Georgia peach has a and North Carolina,” says Andrew Scott, vice of peaches grown in South Carolina, including dierent eating quality, because of the sugar president of marketing and business develop- probably 40 or 50 commercial varieties,” says to acid ratio, the humidity and the soil. It has ment at Nickey Gregory Company, Atlanta. Martin Eubanks, assistant commissioner of a lot to do with the humidity, the sun and the “Georgia Grown has increased in volume over agriculture in South Carolina, Columbia, SC. soil. ey are juicier.” the years, especially blueberries and other Although the peach varieties are generally Southern peach growers have developed non-traditional crops. Peaches, blueberries, selected to ll specic time slots, there is a markets for their juicy treasure that extend watermelons and cantaloupes are the most family of favorites. virtually everywhere in North America east popular fruits grown in Georgia, with blueber- “We have our Freestone peaches,” says of the Mississippi. ries taking over as the top producer. Blueberry Duke Lane III, partner in Genuine Georgia, “We go primarily to the Southeast, but we acreage is on the rise in South Georgia.” a partnership among Lane Southern Orchards, go from Florida to Eastern Canada, from Texas
54 / APRIL 2016 / PRODUCE BUSINESS Sou Carolina
S C N SCPEACH.ORG G R O W THE TASTIER PEACH STATE. TASTE THE DIFFERENCE.
SC Department Of Ag.indd 1 3/16/16 4:12 PM “California takes care of west of the Rockies, but most of our fruit comes o the tree and can be at the store in 24 to 48 hours. It’s fresher.”
— Benjie Richter, Richter and Co. n LET THEM KNOW, AND THEY WILL BUY
to Kansas City, and the Great Lakes area,” says take ve days,” says Chappell. “We’re at the Richter. “California takes care of west of the southern end of South Carolina, so we get in Rockies, but most of our fruit comes o the early and get out early. We nish shipping in tree and can be at the store in 24 to 48 hours. mid-July, around the 15th of July. We grow 22 It’s fresher. Local is good for us. Four hundred varieties of peaches. You have dierent varieties to ve hundred miles away is still pretty fresh.” so you can have consistent volume. We ship as Some Georgia peach shippers have found far west as Houston, and up to Chicago and markets, beyond the Mississippi on the far Detroit in the Midwest, and Montreal and side of the continent. Toronto in Canada.” “We have customers as far as Western Canada, and down into Montana,” says Lane. BLUEBERRIES ON THE RISE People associated with peaches in South Georgia earned a reputation as a pioneer Carolina are frequently quick to let you know peach shipper, but the state has emerged in that they, and not Georgia, are the leading recent years as the nation’s leading producer peach producer in the South, although they of blueberries. are also quick to say they have nothing against “Georgia produced the most pounds of their neighbor. blueberries in the nation in 2014, and we “Georgia got the name as the peach state, think we’ll be close in 2015,” says Charles because they were the rst to ship peaches, Hall, executive director of the Georgia Fruit but we produce more than twice as much as & Vegetable Growers Association, LeGrange, they do,” says Eubanks. “We do still play well GA. “Blueberries are our number one fruit together. ey’re generally a little earlier than crop in Georgia, and have been for some time.” us, then we overlap for a while.” As far back as 2009 blueberries exceeded South Carolina peaches reach Eastern $100 million in farm gate revenue in Georgia, markets in May, and the number of varieties according to Hall, while peaches brought the is enough to keep the fresh fruit coming until state’s farmers a more modest $60 million. late summer. “e blueberries will start in late May and “We are No. 1 in peaches in the South,” says go until mid- to late July,” says Hall. “We’ve Eubanks. “We start to harvest in mid-May, and increased acreage and production of blueber- we’ll run into September. June, July and August ries. We’ve seen tremendous growth; we ship are the peak months. We ship throughout everywhere east of the Mississippi.” the Southeast, to the Mid-Atlantic and New Fed by its reputation as a superfood with England, and we get into the Midwest to Illi- many important nutrients, this fruit is opening nois and Minnesota. e bulk is sold east of opportunities for farmers throughout the the Mississippi River.” region. e weather looks to have cooperated this “Our blueberry volume is increasing; we year, as after an unusually warm fall led to have growers who are putting in more acreage anxiety about chilling hours, the beginning of of blueberries,” says Sonny Dickinson, assistant the year brought the cold peach trees needed. director of marketing and retail merchandising “We’re looking really good,” says Lynne at the South Carolina Department of Agri- Chappell, owner of Chappell Farms, Barnwell, culture, Columbia, SC. SC. “October through December was record warm, but we had a lot of chill in January and CORNUCOPIA OF FRUITS February. We’re all getting our chilling units.” ere is almost endless variety to the fruits Even growers who aim for a particular coming from southern elds and orchards in time slot within the lengthy peach season, the warmer months, with all sorts of melons like Chappell Farms, have enough varieties to closely following peaches and blueberries. oer a steady supply of fresh fruit. “We grow watermelons and cantaloupes,” “We start around the 15th of May, give or says Nick Augostini, assistant director of
56 / APRIL 2016 / PRODUCE BUSINESS marketing at the North Carolina Department September.” ness Grows in NC campaign works from the of Agriculture, Raleigh, NC. “In the fall we North Carolina has a highly successful Mississippi east, and from Maine to Florida. have apples. Blueberries are a big one, and promotional campaign that helps merchandise Any time we go into a store we give them we do grow some blackberries, honeydews this variety of fruits over much of the country. POP materials.” and Muscadine grapes. e Sprite melon you “We started a ‘Got to be NC’ program eight eir neighbors have also developed brand could probably get from mid-June through or nine years ago,” says Augostini. “ e Good- merchandising that helps to promote the fruit. “We have a logo we put into the stores that n LET THEM KNOW, AND THEY WILL BUY says ‘Certied South Carolina grown,’” says Dickinson. “We have a sign we put into the There are almost as many ways to GA. “If we’re up against Jersey Fresh or stores that says S.C. Grown on the front and, merchandise southern fruits as there are some other local program people wouldn’t on the back, ‘It’s a Matter of Taste.’” supermarkets. respond that favorably; but the Georgia Although peaches are number one, South “Each retailer does their own different name generally does pretty well.” Carolina also has a variety of melons reaching thing,” says Benjie Richter, co-owner of Some of the fruit is sold as either from the shelves in the summer. Richter and Co., Charlotte, SC. “On peaches the South, or from a particular state within “I work primarily promoting peaches and we usually get a good end display. We do the region. watermelons,” says Dickinson. “South Carolina have one retailer who does a barbecue “With the buy local thing being a big produces more peaches than anyone else on the display with Vidalia onions, corn on the angle, most of it is sold as ‘From North East Coast; we produce twice as many peaches cob, and peaches.” Carolina,’” says Nick Augostini, assistant as Georgia. We are second only to California. In season some stores find it effective director of marketing at the North Carolina All of the major supermarkets in the Southeast, to build a section within produce featuring Department of Agriculture, Raleigh, NC. and particularly in South Carolina, buy our fruits and vegetables from the home state. “Some of the cantaloupe is sold as Eastern, fruit in season.” “Locally, here in Atlanta, why not have a and also as North Carolina.” Most states in the region have developed Georgia Grown section in the grocery store In some cases retailers decide the rela- eective promotional campaigns that help promoting the farmers and their prod- tive effectiveness of merchandising the merchandise their fruit throughout the South- ucts,” says Andrew Scott, vice president region, a state, or a brand. east, and even the Northeast and Midwest. of marketing and business development “The peaches all have a PLU label “Each southern state does a great job of at Nickey Gregory Company, Atlanta. “One with the brand Titan, Carolina Beauty or promoting their own fruits and veggies, such retail store in Atlanta has big pictures of Summer Snack on them,” says Chalmers as Georgia Grown and Fresh from Florida,” the farmer next to displays of the farmer’s Carr, owner-operator of Titan Peach Farms, says Scott from Nickey Gregory. “ese products. These fruits can be merchan- Columbia, SC. “The retailers sell them as state-run marketing organizations do a great dised as locally grown, especially in the southern or South Carolina peaches. Most of promoting their fresh produce items to a spring, in April, May and into June.” of them prefer South Carolina.” national audience.” From South Carolina, peaches, in partic- This shipper uses packaging that has In many areas of the South, strawberries are ular, have developed a following based on room for a promotional message, and eectively merchandised as fresh, local fruit. their origin. encourages larger volume purchases. “A lot of our strawberries are sold in state,” “We think the South Carolina name “We sell bulk displays, gusseted bags says Augostini. “What might be ‘local’ in Cali- sells well,” says Martin Eubanks, assistant and clamshells,” says Carr. “Gusseted bags fornia would be regional here, because of the commissioner of agriculture in South Caro- with two pounds of peaches are gaining length of that state.” lina, Columbia, SC. “People look for our a lot of popularity. People got used to Georgia farmers, too, have developed highly fruit in all the places we market. We see them with grapes and cherries. There’s local markets for their fresh strawberries. great market opportunities because of the enough room to print a message, but “Strawberries start in late March or April, but eating quality of our peaches.” because they are not clamshells people most of them are pick your own,” says Hall. A few retailers will build a display of feel you’re not wasting so much on pack- e most local southern fruit, however, fruit from the entire region, rather than a aging. The retailer gets a bigger ring from could be a grape that most of the country particular state. the consumer; they’re selling two pounds would not even know how to eat. “We do have some markets that put of peaches.” “e Muscadine grapes are in September together a southern fruit display,” says One state even has a campaign that lets or October, but that’s fairly specialized in the Sonny Dickinson, assistant director of the merchandising begin in the parking Southeast,” says Hall. “Most New Yorkers don’t marketing and retail merchandising at the lot, even before customers enter the store. know how you eat Muscadine grapes. You suck South Carolina Department of Agriculture, “We have a four-foot tall street talker out the juice, throw away the skin, and pick the Columbia, SC. that says S.C. Grown,” says Dickinson. seeds out from between your teeth.” Regional or state fruit brands carry “People may see that sign out front when e Lane Orchard in Fort Valley, GA., weight in much of the country, because they get out of the car, before they even has a small patch of strawberries, blackberries, southern fruit is closer and fresher. get into the store. We started our program blueberries, apples, and kiwi that also includes “A product can make it from Georgia seven years ago, and we already have Muscadines, as well as the related Scuppernong to Indiana in two days,” says Charles Hall, a 67 percent recognition for the brand grapes. executive director of the Georgia Fruit & within South Carolina. Our fruit sales are “at’s more of a local thing,” says Lane, Vegetable Growers Association, LeGrange, increasing.” pb “for people who come to the farm.” pb
PRODUCE BUSINESS / APRIL 2016 / 57 SPRING GRAPE PRIMER – Four Sales Strategies Category profits on the move as new varieties attract more consumers.
BY CAROL BAREUTHER
he quality of new crop North Amer- [Southern California and Mexico] to supply us when California’s San Joaquin Valley starts ican grapes in May determines the and to plan promotional strategies. It brings a production. e volume and quality of fruit payday this category provides for new fresher grape to market for our customers.” at this time is a natural for retailers to kick o produce retailers over the next e chief strategy for proting from the the spring and summer fruit season. several months. Navigating the spring grape season for retailers is to consider “Within this time period you essentially Tspring grape deal poses special challenges for it a sprint, according to Andy Kampa, category have three dierent growing areas (Chile, retailers. In the summer, virtually all the grapes manager at Robinson Fresh, headquartered Mexico and Southern California) that come come from California, so it’s easy to source. In in Eden Prairie, MN. “Retailers need to price in and out of production,” says Michael Smith, the winter, virtually all the grapes come from grapes appropriately in order to move through president and chief executive of Sigma Sales, Chile, so it’s easy to source. But in the spring, a lot of fruit in a short period of time. Early in Rio Rico, AZ. “It is important for retailers retailers need to balance between Southern estimates are calling for 18 million cases out of to be in the right growing area at the right California (out of Coachella), Mexican grape Mexico and 6 million cases out of Coachella, time to assure they are getting the freshest production, and some late Chilean grapes that CA. At 24 million cases, the volume is there, fruit available.” are able to meet required USDA standards. but retailers need to price the product at a level In considering when to transition from “Grapes, like cherries, are a high sales that keeps customers purchasing grapes time South to North American grapes, Acme’s volume item in our departments,” says Jay and again during the spring season.” Schneider says he looks at how the quality is Schneider, produce director at Acme Markets, relative to the market and bases his decision headquartered in Malvern, PA, which is part 1. MAKE A SMOOTH TRANSITION o of good eld reports and inspections on of the 2,200-plus Albertsons family. “If you e spring grape deal is quick and lasts both sides. don’t have them, you can’t make up the sales. about eight weeks, traditionally starting in “e Chilean marketing order usually goes I rely largely on these two growing regions early May and nishing up at the end of June into eect around the middle of April. is
58 / APRIL 2016 / PRODUCE BUSINESS Sunkist.indd 1 3/17/16 12:22 PM means they can continue to bring in seedless “Most retailers look at Mexico and California as grapes after that date, but they have to pass U.S. No. 1 grade on arrival, so this usually limits alternative sources, although some have a preference availability to just red grapes,” says Schneider. e undesired rainfalls this winter and for one or the other.” high humidity levels in Chile through January — John Pandol, Pandol Bros., Inc. should cause it to be a shorter season, specif- ically on green grapes. “is could cause the early market on grapes director of special projects for Pandol Bros, through pretty much until the California desert out of Mexico and Coachella to be elevated Inc., in Delano, CA. fruit is ready to eat. Our customers like the as there should be demand with the absence “We take product from Mexico and tran- local product, which is why we usually wait. of Chilean grapes,” explains Robinson Fresh’s sition into the Desert (Coachella Valley). e e down side is that early fruit is generally Kampa. In addition, “depending on how the challenge is, if there is a gap between the two smaller and doesn’t eat really well. As a result, Crimsons hold up from Chile, the market regions and fruit costs go up along with a we put a lot of trust in our suppliers when it could go one of two ways. If there is a general limited availability to promote. Or there might comes to making the seasonal transitions. We lack of quality, there will be an extreme demand be a big overlap making the fruit cheaper,” almost never are the rst guys to go out, and to get into the new crop. However, if the quality explains Acme’s Schneider. always wait for fruit to size and sugar up. In holds on Crimsons out of Chile, there should Industry professionals in mid-March our minds we want customers to get the best be ample supply through April into early May projected grapes out of Mexico to start 10 to eating fruit they are accustomed to receiving due to the fact the U.S. is the closest, most 14 days ahead of normal, with fruit starting when shopping our stores. Our vendor partners viable market for the Chileans to export to. In harvest in the last week of April. Meanwhile, know our specs and know when to suggest this scenario, there could potentially be more the Coachella season should start in early May. moving into these types of transitions.” grapes available in the marketplace.” “We usually stay away from the Mexican To sell more spring grapes, retailers need With regard to start dates, “most retailers grape crop and wait for the California season to make sure they are stocking the grapes look at Mexico and California as alternative to start,” says John Savidan, produce director preferred by shoppers. Research shows 94 sources, although some have a preference for Bristol Farms; a 12-store chain based percent of primary grape shoppers prefer grapes for one or the other,” explains John Pandol, in Carson, CA. “We ride our Chilean fruit from California to other origins when grapes
60 / APRIL 2016 / PRODUCE BUSINESS “Most retailers look at Mexico and California as In Mexico, “there is a lot of trial with the Seedless as heirloom varieties. ere are at least few early season varieties out there. ere is 8 genetic programs from 4 continents at various alternative sources, although some have a preference also some trial with midseason varieties in levels of trial and introduction in Sonora and combination with dierent production tech- there is trial with new varieties out of new for one or the other.” niques to try and extend the season. Most growing areas,” says Pandol Bros.’s Pandol. — John Pandol, Pandol Bros., Inc. of the early varieties are Israeli genetics and One of these is the green-skinned Early the response has been mixed. e ‘I don’t use Sweets, grown for the rst time in the Obregon Perlettes’ crowd buys them for their visual region or more specically in the Yaqui Valley, characteristics, they tend to be greener and have which is located 160 miles southeast of the better stems, but not necessarily taste. Some established spring grape-growing areas of retailers are requesting Perlettes and ompson Hermosillo. e rst harvest is expected in
are priced the same. What’s more, 69 percent prefer grapes from California when the price for California grapes is higher, according to the California Table Grape Commission (CTGC) 2015 Online Omnibus Survey conducted by Fleishman-Hillard International Commu- nications’ St. Louis-based research division. “ese numbers conrm shoppers are paying attention to where their food comes from and a good way for retailers to promote local origin,” says Cindy Plummer, vice pres- ident of domestic marketing for the Fresno, CA-headquartered CTGC. As conditions continue to allow for an earlier start out of California, a retailer’s focus should also be on the late season and how grapes handle the transition back into the import season. “e historical pattern of ‘El Nino’ years is a big desert grape deal and a late Central Cali- fornia (San Joaquin Valley) start. So don’t set your transition dates in stone, especially on the back end,” recommends Pandol Bros.’s Pandol.
2. CREATE EXCITEMENT WITH NEW VARIETIES Tried-and-true spring grape varieties like Flame seedless, Princess, Sugraones, Summer Royal and ompsons are among the best sellers at Bristol Farms and Acme Markets. Beyond this, Acme’s Schneider has tried a number of new varieties. “Every week or two we feature a new variety. Cotton Candy obviously is the most popular. Customers love to try new things and welcome these new varieties. I see this growing every year as more supply becomes available,” says Schneider.
PRODUCE BUSINESS / APRIL 2016 / 61 “I think from a merchan- dising aspect you have the ability to call out new crop on your signage and build larger displays of local fruit.” — John Savidan, Bristol Farms
early May. “e fruit coming from Obregon will be some of the earliest green grapes available out of Mexico,” says Sigma Sales’ Smith. “Addi- tional acreage here is being planted now that will come into production in about two years. is is the rst year harvest on the early plant- ings so volume will increase going forward.” Sigma will market these grapes and other varieties such as Flames and Sugraones for the grapes out of Mexico,” says Rick Paul, grape strengths,” says Bristol Farms’ Savidan. rst time under the popular Melo label from category manager. “e company is renewing Packaging in springtime mirrors that of the Pablo Borquez family of growers. its interest in organics due to strong customer other times of year. Prime Seedless is another newer early and consumer demand and low supply avail- “High graphic bags continue to be the season green seedless grape. Fresh Farms, in ability, and putting the investment in place to primary pack style, followed by clamshells. We Rio Rico, AZ, is one of only two growers to be USDA-certied organic in the next two are seeing one-pound clamshells help retailers grow the early Prime Seedless green table to three years.” achieve a desirable price point in the pack grape in Mexico. style, as well as merchandise specialty grapes “e main problem with the Perlette is 3. SIGN DISPLAYS WITH ‘NEW CROP’ separately from bulk grape displays,” explains it doesn’t get sweet early,” says Jerry Havel, Grapes have become such year-round Sun World’s Paul. director of sales and marketing. “e Prime staples that 80 percent of respondents no At Acme Markets, Schneider says he tried Seedless is larger, sweeter and tastier.” longer see them as ‘exciting’, according to a number of varieties in 1- and 2-pound clam- e clear-cut variety out of Mexico is proprietary research supplied by VIVA Inter- shells last year with great success. the Cotton Candy grape (green), which has national Partners, Inc., a marketing consultant a sweeter avor prole that kids love, says rm based in Nogales, AZ. 4. KICK OFF THE SEASON Robinson Fresh’s Kampa. “In addition to “e ‘blur’ eect of grape displays on shop- WITH PROMOTIONS the Cotton Candy grape, Sweet Celebration pers today is something that can be addressed, e gap between the end of green grapes (red) and Sweet Globe (green) are the most especially since the tote handles are what most out of Chile and start from Mexico leads to prevalent in Mexico, as well as a few other consumers see rst, not the fruit,” says Veronica high demand and typically high prices, says IFG (International Fruit Genetics, in Bakers- Kraushaar, president of VIVA International Miguel Suarez, chief executive of MAS Melons eld, CA) varieties that have been planted. In Partners, Inc. “It is important to announce in & Grapes, in Rio Rico, AZ. “Prices are too Coachella, there are a number of grape varieties point-of-sale, signage or in circular ads ‘New high for retailers to promote in the rst week including the Valley Pearl, Magenta, and Ivory, Spring Crop,’ ‘New Variety Here.’ Or, post this of harvest, but one week to 10 days’ later prices which are also known as the SHEGENE-21, on-pack, such as on the tote handles, in order start to come down and it’s a good time to Pristine, and Scarlet Royals. Most of those to give shoppers a reason to stop, especially begin promotions.” varieties will be available in June. We expect when transitioning from winter to spring.” ere are many opportunities to promote the Ivory variety to be a mainstay in Coachella Large end cap or cube displays merchan- spring grapes since there will be ample volume and the Central Valley in years to come. dised in high trac areas within the produce out of Mexico and California. New this year in black grapes, Sun World departments or in the front lobbies is how “We will have good supplies of red, green, International, LLC, in Bakerseld, CA, will Bristol Farms showcases spring grapes. and black seedless varieties for Memorial Day have Sable Seedless out of Mexico and Coach- “I think from a merchandising aspect you promotions,” says Tom ‘TW’ Wilson, grape ella, thus extending the seasonality of this have the ability to call out new crop on your sales manager for the Giumarra Companies, grape from June to September when added signage and build larger displays of local fruit. headquartered in Los Angeles. “Our peak to its traditional San Joaquin Valley harvest. Since the fruit is a new crop it generally holds production will take place from May 20 to June “We will also have a light volume of organic up well and bulk fruit merchandising is an 20, so grapes can be promoted from the middle Midnight Beauty and Sable Seedless brand option for us, and quite frankly, one of our of May to the Fourth of July holiday.” pb
62 / APRIL 2016 / PRODUCE BUSINESS In Memoriam Kurt J. Schweitzer March 12, 1953 – February 17, 2016 And now these three remain: faith, hope and love. But the greatest of these is love. (1 Corinthians 13:13)
I first met Kurt in 1980 when I joined Keystone Fruit Sales. We Obviously, from the success of Keystone Fruit, over the years the worked together for close to 14 years. His personality was sincere and great minds of Kurt and his partners yielded great results. Working with unpretentious. He always enjoyed meeting people and he always did it and for Kurt was a pleasure; but knowing him for 36 years was more with a smile and with a tone that was witty and just plain humorous. He than that, and having lost such a close friend is yet another hard hurdle in could speak with a full smile, yet deliver a serious message. Kurt was an life that we have to get over. adventurous person who took chances in business and in life. Although Kurt will be greatly missed. His produce family reaches across the so heart-breaking, when Kurt passed he was being adventurous and country and across international borders. I am so grateful that I was part enjoying life to the fullest. of that family. Jim Allen | New York Apple Association
Kurt was a force for progress in the produce industry, and a bright Kurt was devoted to his wife Pat and his family, his partners and his light to many, both professionally and privately. He showed tremendous employees at Keystone. The smile, the twinkle in his eye, and his energy energy chasing ideas and innovating new and better ways to bring pro- will be sorely missed, but not forgotten.” duce to market, including pioneering work on sweet onions. Jack Gyben | Progressive Produce
We will always remember Kurt’s big smile. No matter wherever or business partners first and friends first. Nothing ever came second. We whenever we were meeting, when he entered the room it was always will miss Kurt dearly. But I can promise you that we will continue to a great, warm welcome. He was such an inspiration to his employees, honor him in our business partnership with Keystone every day.” his growers and his business partners. Our business dealings cannot be described to others because they are so unique: We were somehow Jim Leimkuhler | Progressive Produce Kurt and I were friends for over 30 years. on a rainy day. Kurt spoke with Arnie and Jim Nantz, who was covering We golfed at the same club and I will miss those mid-day calls asking a Steelers game. From that conversation, we all ended up having lunch “Hey can you get away for a quick 9 around 4 o’clock”? The guys in our and sitting with members of the Rooney family, the Steelers owners. gang would always ask me where’s Kurt? My response was always the Kurt taught me a lot, we laughed a lot and he always told me, “David same “not sure but he’s out working on the next deal somewhere.” sometimes we just don’t know what’s good for us.” So very true. Kurt led Kurt was good at “pulling a rabbit out of his hat”. One day we were us all and gave a lot of himself, and all I know at this writing is I miss him! golfing at Arnold Palmer’s home course, Laurel Valley, in a charity event Chef Dave Munson | Keystone Fruit Marketing
Kurt Schweitzer’s love of life and people was a lasting gift to every- kindness and integrity. Kurt’s spirit will move us forward as companies one he met, and especially to all of us at Keystone and KeyPeru. We that embody his values, his energy and his unfailing optimism in every were blessed to have him as a leader, a mentor and a friend. Kurt’s smile undertaking. urged us to do our best, to do the right thing, and to do everything with Marty Kamer | Keystone Fruit Marketing
Kurt was employed by Keystone in 1979, became an owner a couple analyze a challenging situation and figure out a good solution was some- of years later and we were partners in Keystone until I retired in 2008. times uncanny. His vision was from a sky-level perspective. We then continued as partners in the Walla Walla Washington sweet He was a wonderful partner to me, to Keystone and to all of our onion farming operations. business contacts. Kurt was always the one with new, sometimes seemingly “out of the We will sorely miss him. blue” ideas that in many cases led to successful ventures. His ability to Bob Evans | Keystone Fruit Marketing Identifying The Advantages Of Australian/New Zealand Fruit Understanding the variety and innovation in Australia and New Zealand fruit provides a base for successful merchandising and promotion. BY JODEAN ROBBINS
s Australia and New Zealand in Springdale, AR stocked with varieties Australia (PMA-A-NZ). “is [process] was grow in both volume and variety, not available for weeks or even months. “It done through a single importer [Fort Pierce, U.S. and Canadian retailers helps sustain categories or parts of categories FL-based DNE World Fruit], and Australian harness the fruits of their labors that would otherwise struggle during certain exporter, Riversun — on behalf of leading to extend sales. “ere have time frames and gives the consumer more to citrus exporters. is export now continues, beenA a few big game changers in the produce choose from,” says Mike Roberts, produce although with multiple exporters and importers business during the past 20 years, and one of merchandiser for Harps, operating 80 stores all under increasing competition from Chile, them is the Australian Navel orange develop- in three states. Peru and South Africa.” ment,” says Alfonso Cano, produce director Just two decades ago, exports from Both Australia and New Zealand expanded for Northgate Gonzalez Markets in Anaheim, Australia and New Zealand to the U.S. market volume and variety. According to statistics from CA. “e variety and quality from Australia were scarce. “In the early 1990s, Australia Australia’s Department of Agriculture and and New Zealand are crucial to lling out our commenced exports of predominantly Navel Water Resources, Australia exported 8,006 tons department in key products during certain oranges during the U.S. o-season,” reports of oranges (valued at about US$9.9 million), time periods.” Michael Worthington, chief executive of 2,180 tons of other citrus (valued at about New Zealand and Australian apples Produce Marketing Association Austra- US$2.8 million) and 18 tons of mangos (valued and citrus keep Harps Food Stores Inc. lia-New Zealand in Melbourne, Victoria, at about US$140,000) in 2015.
64 / APRIL 2016 / PRODUCE BUSINESS Total New Zealand fruit export value to the e counter-seasonal nature of trade with Australia U.S. is close to NZ$100 million (approximately US$68 million) according to Alan Pollard, and New Zealand presents exceptional advantage. chief executive at Pipfruit New Zealand in Hastings, New Zealand. “Pipfruit (apples and pears) and kiwifruit make up the bulk of this,” “e main item is the Navel orange, which runs “ese include the Gold kiwi, and Jazz and he relates. “A variety of other products tested the length of the season,” says Cannon. “Other Envy apples in particular.” the U.S. market, and some are quietly doing items Australia sends include Daisy mandarins, New apple varieties help Dorothy Lane well — including plums, lemons, persimmons Aussie Sweets, Minneolas, Blood Oranges, and Markets, a three-store independent in Dayton, and avocados.” Cara Caras. e Navel avor pro¤le is similar OH, expand its marketing season. “New to domestic Navels while the Minneolas tend Zealand enabled us to promote apples more, COUNTERSEASONAL ADVANTAGE to be slightly more tart in their pro¤le.” because previously customers only bought e counter-seasonal nature of trade with Apples represent an innovative and growing apples in the fall harvest time,” says Michelle Australia and New Zealand presents excep- category for New Zealand. New Zealand Mayhew, produce director at the retailer. “Now, tional advantage. “It is important to have these exported 32,150 tons of apples to the U.S. customers are picking up the new varieties items year-round,” says Jack Cannon, sales in 2015 — representing 10 percent of the outside the fall season. It opens a whole new manager/Australian team leader for DNE total New Zealand annual apple production door.” World Fruit LLC in Fort Pierce, FL. “Austra- according to Pipfruit New Zealand statistics. In 2010, Zespri began marketing a new lian citrus items are counter-seasonal to the “e New Zealand apple industry underwent variety of gold kiwifruit, the Zespri SunGold. California domestic crop, and customers are substantial changes since 2001 when dereg- “In 2015, we took the SunGold kiwifruit to accustomed to enjoying summer citrus from ulation removed single desk selling,” reports the U.S. market in greater volume — selling Australia for its avor, convenience, and value.” Pollard. “e development, planting and 1.4 million trays,” reports Pollard. “We plan Customer expectation for product 365 days harvest of new varieties changed the export to build on this success in the season ahead, per year means Northgate counts on count- varietal mix.” which starts with arrivals from mid-May.” er-seasonal supply. “No one says, ‘because it’s New variety innovation is a crucial tool for Kiwi is a high use item for Dorothy Lane. not in season we don’t expect much,’” states New Zealand. “Novel and interesting varieties “We use kiwi in our fruit bowls and fruit trays Cano. “Our customers expect the best at all are sales drivers,” reports PMA’s Worthington. in addition to selling it as a separate item,” says times; so if we want repeat purchases, we need good consistent counter-seasonal supply and Australia/New Zealand deliver this.” e region provides a wealth of prod- ucts to complement market sources. “Kiwi- fruit is counter-seasonal to U.S. product and consumers respond well to new arrivals of fresh in-season kiwi,” says Glen Arrowsmith, market manager North America for Zespri Interna- tional in Mount Maunganui, New Zealand. Giumarra markets kiwifruit, apples, and pears from New Zealand and mangos, apricots, and cherries from Australia. “ey complement the U.S. because of their Southern Hemi- sphere location,” reports Jason Bushong, divi- sion manager for Giumarra Wenatchee of the Giumarra Companies. Specialty companies such as Frieda’s market lemons, kiwifruit, passion fruit and other sub-tropical items from New Zealand. “Using imported products allows best-selling items to be available year-round and makes retail merchandising easier,” says Karen Caplan, pres- ident and chief executive of Frieda’s Specialty Produce in Los Angeles, CA.
HARNESS PROVEN WINNERS Retailers are urged to understand essen- tial products from this region and how they ¤t into market windows. DNE reports the Australian Navel season normally starts the ¤rst week of July and runs through October.
PRODUCE BUSINESS / APRIL 2016 / 65 Mayhew. “It’s become as common as strawber- “Online contests are a useful vehicle to educate ries; we go through a lot of kiwi in our stores.” and excite consumers about specic products and GET OUT THE MESSAGE grower stories.” Timing, quality and volume of fruit from — Jason Bushong, Giumarra Companies Australia and New Zealand make for successful promotion and merchandising. “Oering trop- ical and exotic fruit varieties provides room for good promotion when the high selling season enjoyed in fruit salads at the backyard barbe- says Arrowsmith. “In-store photography, on tree fruits, grapes, and melon season ends cues, toted along in the picnic baskets, or shared messaging, attractive packaging and sampling in the late summer and these items become on the hiking trail,” suggests DNE’s Cannon. support are key tools.” available,” says Robert Schueller, director of Stores can take advantage of supplier A good message starts with a prominent, public relations for Melissa’s Produce in Los programs and support. “Zespri invests attractive display. “Retailers should create large Angeles, CA. marketing support to communicate the impactful displays of high color, cosmetically Summer is a perfect backdrop for promoting dierent varieties, the delicious, ripe eating clean fruit at competitive retail price points,” new crop freshness. “Australian citrus can be experience and its extensive health benets,” advises Cannon. Giumarra’s Bushong suggests promoting across a variety of channels to strengthen the n AUSTRALIAN MANGOS AND LYCHEES message, including in-store and on social media. ADD EXOTIC AND TROPICAL FLAIR “Online contests are a useful vehicle to educate and excite consumers about specic products Retailers looking to increase tropical Australian mangos this year, and they and grower stories,” he explains. “Consider and exotic offerings can look far south were amazing,” he says. “It’s a tough busi- highlighting the unique growing story of New for supply. Robert Schueller, director of ness currently, because of the competition. Zealand and/or Australia to generate consumer public relations for Melissa’s Produce in Los In the future, these mangos have tremen- interest in products of that region.” Angeles, CA, reports many unique items dous potential.” from New Zealand complement current Australia and its importers are also PREPARE WITH CONFIDENCE supply: passion fruit from February through bullish on lychees. Recently granted market Adequate preparation is the rst step to June; Kiwano Melon from January to May; access into the U.S., Australia produces merchandising success. “Pre-season plan- feijoa from March approximately 3,500 to ning and communication allows DNE to through June; Meyer 4,000 tons of lychees ensure necessary promotional volumes are lemons from August each year with exports initially loaded on the vessels and secondly to September; baby estimated to be worth earmarked for the specic retailer,” advises kiwi from mid-February AUS$18 to $20 million Cannon. “Because the arrival volumes are through March; figs in (about US$12 to $14 nite, it is critical supplier and retailer work March and April; and million), as reported closely together regarding item volume needs tamarillo from March by Australia’s Depart- and timing.” through September. ment of Agriculture and Zespri expects the kiwifruit season will For Australian tropical Water Resources. start with Zespri Green, SunGold and organic fruits, Schueller lists the Specialty products product in the U.S. market from mid-May and following: mango and PHOTO COURTESY OF MELISSA’S PRODUCE and new varieties be widely available. “An extensive marketing lychee from December provide opportunity campaign will support the program and aim through February; as well as Blood and for retailers to create a premium product to re-introduce Zespri Kiwifruit to North Cara Cara Oranges from early September as evidenced by Northgate’s orientation. America consumers,” says Arrowsmith. through mid-October. “New varieties bring excitement and DNE reports the upcoming navel crop Continued progress in admissibility of novelty to the department and give a is projected to peak on the larger size. “A products from this region support market chance for extra profits by selling some- per-pound retail rather than by-the-each development for specialties. “Trade thing at a premium rate,” explains Cano. “If would be suggested,” advises Cannon. “Also opened the door to unique fruits during we bring in a Gold kiwi or an Envy apple, Daisy mandarins, known for their bold and the past five years such as baby kiwi, figs we can promote it but not as a price-sen- aromatic avor and moderate seeds, gener- and Meyer lemons,” explains Schueller. sitive item.” ally have good size and keep well allowing “The addition of mango and lychee in this Increasing availability of specialty fruits for successful promotion in bulk. Look to last year from Australia opens up oppor- provides Dorothy Lane with a differentia- promote them early in the summer season, tunities in fruits already demanded in the tion tool. “Our customers like the unique- late June through mid-July. e avorsome, marketplace.” ness of specialty items,” says Michelle easy-to-peel, Aussie Sweet mandarins will Alfonso Cano, produce director for Mayhew, produce director at the retailer. be very promotable in 2- or 3-pound bags in Northgate Gonzalez Markets in Anaheim, “Our customers travel and are experiencing August/September — an excellent window CA, views Australian mangos as another these products so having them in our store of opportunity for driving incremental sales game changer. “Melissa’s brought us some gives us an edge.” pb dollars.” pb
66 / APRIL 2016 / PRODUCE BUSINESS Profits From Pallets
PHOTOS COURTESY OF PECO
Economy and sustainability CHEP, a major pallet supplier worldwide, and pallet for small lots and small footprint sized come together in optimum its sister company IFCO, a major supplier of products,” says Gary Sharon, vice president at systems. reusable plastic containers. Litco, Vienna, OH. Litco specializes in lower cost press wood SMALLER MAY BE BETTER pallets, made by molding wood and resin under BY BOB JOHNSON One of the newest developments in resource high heat and pressure. eciency is the availability of smaller pallets “It can be used for a base under point of allets can have major hidden impacts for smaller loads. purchase oor displays, and also as a pallet on produce waste, shipping costs, “CHEP recently launched the half pallet for small lot shipments. It is inexpensive, and the sustainable use of materials. in the U.S. market,” says Adlam. “e benets aesthetically pleasing, space saving, nestable, Although usually used only for of the 40-inch by 24-inch pallet include its lightweight, yet strong. It has safer, rounded the relatively short time produce is ability to assist retailers in reducing the cost corners, no nails, no ‘foot trip points,’ which Pin transit from the eld to the store shelf, the to ship, handle and display products from the avoids feet getting stuck between the top and impact of that time is multiplied because it point of manufacturing to the point of sale. bottom of the pallet/base. ere are no nails, can be measured in the hundreds of billions e idea is that half-size pallet loads can go mold, bark or contaminates such as listeria.” of miles. from the farm and processing facility to the Shippers and retailers alike can use a soft- “Trucks travel 275 billion miles on Amer- retail store with minimal manual handling. is ware program to see, in advance, how large a ican roads, with 80 percent of them used to ship drives eciency, reduces product damage and pallet they need, as well as the optimal amount commodities and consumer goods,” says Jason eliminates other wasteful practices.” of material and design. Adlam, vice president for sales at CHEP USA, Not to be outdone, a U.S. pallet provider “e engineering in the Pallet Design Alpharetta, GA. “Transportation is a critical has come out with a product just 50 percent System enables users to quickly and accu- component of the consumer goods supply as large as the half pallet, and it can double as rately determine pallet performance under the chain – and that is why virtually every retailer a oor display at retail. intended conditions of use without time-con- is asking its suppliers to become more ecient, “Our contribution to ‘what’s new and suming and expensive testing or trial and error,” reduce costs and become more sustainable to improved’ is our new 20-inch by 24-inch says Patrick Atagi, vice president for advocacy win with consumers and spark marketplace quarter size of our standard 48-inch by and external aairs at the National Wooden growth.” 40-inch pallet/base for use under point of Pallet & Container Association (NWPCA), Sydney, Australia-based Brambles owns sale oor displays and for use as a shipping Atlanta. “Comparisons in performance are
PRODUCE BUSINESS / APRIL 2016 / 67 easily made between dierent pallet designs, “ e bottomline is the retailer should use the correct wood species or grades, fasteners, and compo- nent dimensions.” and safest pallet for the job, whether new or recycled. Brand name shippers are already using this I underscore safety, because often times there are software to design pallets with enough material to be strong enough for the job, but not so hundreds of pounds if not thousands on a pallet.” much as to be wasteful. — Patrick Atagi, National Wooden Pallet & Container Association “Many major retailers either use or require the use of the Pallet Design System for their new pallets,” says Atagi. “is ensures using pallet for the job, whether new or recycled. I achieve those goals.” the optimal amount of material for the job underscore safety, because often times there Gerawan Farming, a major peach and needed, and avoiding ‘over building’ a wooden are hundreds of pounds if not thousands on a nectarine grower in California’s Central Valley, pallet. Del Monte, to my understanding, uses pallet. Worker safety should be paramount.” ships on its patented Prima Pallet. the Pallet Design System.” One major California fruit grower considers “At Gerawan Farming we pride ourselves pallets so important in reducing damaged or in making our own pallet,” says Schutz. “Our GET IT TO THE STORE IN TACT unsafe food incidents that they make their own Prima Pallet is fabricated inhouse with select Nothing improves resource eciency under highly controlled conditions. wood from trusted mills, each style custom-de- in moving produce more than minimizing “e retailer should focus on arrivals and signed to safely protect the specic package damage to the product, and to the workers getting their produce in the same condition it will carry.” loading, transporting and unloading it. as when it was shipped,” says Denver Schutz, Damage to the produce is a major issue to “e Pallet Design System structural technical services manager at Gerawan consider when considering what pallets to use. analysis and safe load estimates reduce Farming, Fresno, CA. “When suppliers ship “Product damage can be a large opportunity concerns over human health and safety, and on reused pallets, there is a chance for product for a retailer to reduce costs resulting from reduce or eliminate product damage which can damage. is would include crushed boxes, damaged products and produce on less than result from inadequate pallet strength, stiness, pallets that may have fallen over in transit and stable platform and unit loads,” says Adlam. or durability” says Atagi. “e bottomline is damaged product. Ultimately, a retailer should “It is critical to look at the entire unit load, the retailer should use the correct and safest identify what is most important and strive to including the pallet to optimize the system
68 / APRIL 2016 / PRODUCE BUSINESS “ e bottomline is the retailer should use the correct to be the most robust, and environmentally stable solution. Often, a pooled pallet provides and safest pallet for the job, whether new or recycled. the best solution to reducing product damage I underscore safety, because often times there are throughout the supply chain.” hundreds of pounds if not thousands on a pallet.” RENT OR BUY? — Patrick Atagi, National Wooden Pallet & Container Association Among the most important economic deci- sions concerning pallets is whether to rent or buy. e consensus answer among the insiders most involved with pallets looks to be — it depends. “Renting or purchasing depends on the retailer,” says Schutz. “e retailer normally drives this decision, but we always share our point of view. If we must use a pooled pallet it will always be a plastic iGPS pallet. We prefer the plastic iGPS pallet because of its overall appearance, durability, and cleanliness.” “e North American pallet industry has seen continued growth and participation in the pooled pallet market,” says Adrian Potgi- PHOTO COURTESY OF GERAWAN eter, senior vice president of sales at PECO, Irvington, NY. “Many U.S. consumer packaged down to the nature of the product. the material. goods companies converted from whitewood “Leasing a pooled pallet works well for “We sell all of our used and broken pallets to rental block pallets. almost all produce items that are shipping into to third party pallet companies,” says Schutz. “Leading retailers, such as Costco and most U.S. retailers, major wholesale grocers “ey normally x the pallets and sell them to Walmart, also demonstrated a strong prefer- and some foodservice lanes,” says Adlam. other companies that may use them. at is just ence for block pallets, because they can hold “Purchased recycled pallets may work better too risky for us. We always stack our fruit on more weight (up to 2,800 pounds) safely stored for products with long storage times, export new, and never previously used, Prima Pallets.” in overhead racks, allow true four-way entry, products and non-traditional retail lanes.” Failure to reuse or recycle pallet materials and are better for the handling and displaying is largely a matter of logistics, or of inadequate of products,” says Potgieter. REUSE OR RECYCLE? commitment to sustainability. One option is to buy used pallets for e environment and the economy come “e fact that wood pallets are landlled one-way shipping, but while this may be together on the challenging issue of nding a is not an inherent problem with wood, it’s a economical, the buyer should beware. way to reuse or recycle the material in pallets. failure of infrastructure, which is why we’re “One-way pallets are ideal for use in cases “All pallets are made to be recovered, refur- proud of the recycling network that exists and where shipping pallets are easily lost or dicult bished and reused again,” says Tim Debus, is growing throughout North America,” says to recapture,” says Sharon, “also for companies president and chief executive of the Reusable NWPCA’s Atagi. “Using a Carbon Calculator that do not want to rent pallets because of the Packaging Association, Tampa, FL. pallet users can calculate the carbon benets of related costs involved with accounting and “Most of what we do is support the reuse your eorts to recycle/repair pallets and keep replacement of lost rental pallets. Used, recy- of the material. Reusable applications lead to them from landlls.” cled wooden pallets are popular for one-way savings in the supply chain. We see a lot of Just as growers increasingly must answer shipping because the pricetag is low. However, trending toward reuse of the materials.” to sustainability standards, everyone in the the true cost of using them is much higher but ere are already businesses that take old produce supply chain will also face challenges is not reected in the price. Most used pallets wooden pallets and either repair them, or nd in using sustainable pallet practices. have been through the recycling process many ways to reuse the materials. “We will be launching Nature’s Pack- times which makes the look and performance “Used wooden pallets are generated at aging,” says Atagi. “A website and initiative inconsistent and creates a high potential for a source that receives palletized goods and that develops and centralizes information and contamination on the pallet surfaces.” ooads them,” says Sharon. “If they cannot use marketing materials for the wooden pallet and With this rental factor in mind, PECO the empty pallet, they contact a pallet recycler packaging. I presented materials at the United oers tailored services. “PECO customers pay for a pickup. e recycler normally pays for the Fresh Produce Association Supply Chain a simple, all-in-one price per pallet and don’t pallets, takes them to his shop and sorts the Logistics meeting at the Washington confer- have to worry about sourcing, storing, tracking, pallets. ey repair the good ones, and grind ence last year on the initiative, and there was or reselling their pallets,” says Potgieter. “And the unusable lumber for mulch. ey sell the a great deal of interest and excitement about we consistently deliver high-quality, hassle-free repaired pallets to another company that loads it from United’s members on the committee pallets that work smoothly — even in fast- goods onto them and ships them down stream including Tanimura and Antle. For the produce moving automated processing lines.” to their customer. And the cycle begins again.” industry, it’s important that not only is your e decision of whether to buy or lease, or Even shippers who never use pallets twice, product sustainable, but even the pallet you whether to go with new or used, often comes like Gerawan Farming, nd ways to recycle ship it on is sustainable.” pb
PRODUCE BUSINESS / APRIL 2016 / 69 TORONTO MARKET PROFILE The Unified Prize Of Produce W¡¢ £¡¤ ¡ ¥¦¥§¨ ¡© ¥§¨ £©¥§¨ ¡©ª«
By Linda Brockman
t 8 a.m., when much of the working world is driving through rush hour, Marcus Koornneef is near the end of his day. Monday through Friday, he joins his father, uncle and cousinsA at the Koornneef Produce Ltd. ware- house in Grimsby, Ontario at about 1:45 a.m., then drives to Toronto at 2:30 a.m., arriving at the Ontario Food Terminal (OFT) at 3:30 a.m. “For me, there is a certain level of honor in continuing the family business,” says Koorn- neef. “My grandfather and dad worked very hard. ey are big shoes to ll, because when you look at the previous generations, you want to prove that the next generation can make the same contribution.” Throughout the produce business in Toronto, an enduring and prevailing theme is family, many going back three or four gener- ations — whether the last name is Bamford or Streef, Weinstein or Sarraino. “Each generation puts a dierent spin on the business,” says Julian Sarraino, vice presi- dent of marketing and sales, who, along with his younger brother Christian, vice president
of sourcing and procurement, is the fourth generation of a family business that has been involved in every aspect of the industry, from growing and importing to wholesale and retail. eir father, Sal, remains happily immersed in the daily grind at Fresh Taste Produce in the OFT. “You can’t hire someone to do what we do,” says Sal, who followed after his own father, Gus. “e Sarraino men put in the sweat, blood, passion and commitment. We take a lot of pride and joy in everything we do in this business.” “Toronto is a good market, a vibrant market,” says Steve Bamford, chief executive of Bamford Produce, who runs a company that has been at the OFT since 1954. e company oers services from farming and growing to packing and transportation. “We are trying to
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Toronto.ms.indd 1 3/24/16 5:58 PM Veg-Pak.indd 1 3/23/16 11:50 AM TORONTO MARKET PROFILE
Steve Bamford, Bamford Produce TORONTO TIDBITS Here are facts and findings that make Toronto unique:
• A population of 5.5 million people • Ontario excels at growing cabbage, was tabulated in the last national celery root, parsnips, parsley and census, taken in 2011. carrots, says Gus Bondi, president • While families tend to be big in the of Bondi Produce. United States, the average Cana- • The Ontario Food Terminal (OFT) in dian couple has 1.7 kids, according Toronto is the largest wholesale fruit to Alex Roberts, a City Sightseeing and produce distribution center in Toronto tour guide. Canada, where 2 billion pounds of Virginia Zimm, Ontario Produce Marketing Assoc. • There are 180 common languages produce is distributed annually. On and dialects, and 127 spoken in average, that’s 5.5 million pounds Toronto City Hall. While English is per day, according to Bruce Nicholas, “It is very important that the predominant language spoken OFT manager. we see as much product as by Torontonians, other language • The large Asian influence has groups are significant, including brought in leafy greens, bok choy, possible before purchasing Cantonese, Italian, Punjabi, and Chinese bittermelon to Toronto, it to ensure that we are Spanish, Mandarin, Tagalog, Urdu, says Vic Carnevale, Veg-Pak Produce. Tamil, Portuguese, Persian, Arabic, • The former Maple Leaf Gardens, delivering the best product Russian, Polish, Gujarati and Korean. where the Maple Leafs hockey possible to our customers.” East Asians make up the largest team won eight Stanley Cups, is — Mimmo Franzone, Longo’s ethnic group. — Statistics Canada, now the site of Loblaws’ flagship the nation’s central statistical office. supermarket. It features a wall of • A popular new trend among Toronto cupcakes; an 18-foot cooler with be as vertically integrated as possible.” Millennials is Chef’s Plate, where 400 varieties of world cheeses; and When the Canadian dollar uctuates or consumers receive a recipe and all the red dot on aisle 25 marks the bad winters in parts of the world create supply the pre-portioned fixings to prepare spot where hockey’s “center ice” challenges, Marshall Smith knows he can come it — including fresh produce, deliv- used to be. to the market and function with a support ered in a refrigerated box to their • McDonald’s Canada added an egg, system from the buyers and sellers. “We are doorstep. kale and Feta cheese “More-ning all connected; we are all partners,” says Smith, • In 2014, the amount of people who McWrap” to its breakfast menu. who is co-owner of Smith Markets in Sudbury, reported eating five servings a day • Tim Horton’s (part of Restaurant Ontario. Smith says he buys his berries from of fruits and vegetables was highest Brands International, one of North J.E. Russell Produce Ltd. at OFT, because in Quebec (46.3 percent), and next America’s largest restaurant chains company president, John Russell, consistently highest in Ontario (38.1 percent). operating in the quick service delivers quality. The Ontario number, however, is segment) was started by the NHL While Russell appreciates Smith’s loyalty, still lower than the national average, player of the same name who won he knows that he has to remain dependable according to Statistics Canada, the four Stanley Cups. The restaurant to keep that trust. “I can’t lower my guard. I country’s national statistical agency. serves coffee, doughnuts and fast always have to be at the top of my game. I have • In March 2016, Justin Trudeau and food and is the most popular chain to earn his business every day,” says Russell. President Obama bonded when in Canada, surpassing McDonald’s, Fresh Taste has one of the busiest stalls the newly elected Canadian prime says James Rilett, Vice President on the market, selling 150 varieties of minister and his wife, Sophie, made of The Canadian Restaurant and produce. “We’ve been extremely fortunate,” Canada’s first official White House Foodservices Association. pb says Julian Sarraino. “Because of what we (Top) Sal Sarraino; (Bottom) Julian Sarraino and visit in 19 years. learned from our father and grandfather, we Christian Sarraino of Fresh Taste Produce
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Toronto.ms.indd 2 3/24/16 5:59 PM (L-R) Tom Meschino, J.E. Russell; Marshall Smith, Smith’s Markets; John Russell and Peter Meschino, J.E. Russell
have a level of experience beyond our years.” WHOLESALE OFF THE MARKET “We’ve been growing like crazy over the Vic Carnevale, who works with his kids About a mile o-market, Gus Bondi of past four years. Five years ago, we had a eet at Veg-Pak, agrees. “My success is because of Bondi Produce saw the need to expand the of seven trucks, today it’s 22,” says Ezio Bondi, family. It’s the reason the business continues.” business to a new 42,000-square-foot facility Gus’s son. e business started with Gus’ father, He came to Toronto from Italy in 1966 at age down the street from his former one. Ignacio, selling produce out of the back of his 18. “I had no family here, but Canada accepted all immigrants.” Over the years, he worked for a variety of produce retailers, working his way from produce clerk to produce manager and department supervisor. Today he owns Veg-Pak and sits on the board of the Toronto Wholesale Produce Association (TWPA).
(Top) Sal Sarraino; (Bottom) Julian Sarraino and Christian Sarraino of Fresh Taste Produce
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Toronto.ms.indd 3 3/24/16 5:59 PM TORONTO MARKET PROFILE
(L-R) Jeff Jones, Marcus Koornneef, Bryan Koornneef, Fred Koornneef, Dave Termorshuizen and Emilio Giorgi of Koornneef Produce Ltd.
station wagon in 1976. a produce management company that oers is the only full-edge distributor in Ontario Gus Bondi attributes his success to many fresh produce procurement and distribution aliated with Produce Alliance. factors: family, sta and hard work. A big factor services to foodservice clients across North Another achievement for Bondi was has been his involvement in Produce Alliance, America, the Caribbean and beyond. Bondi securing Chef ’s Plate (the Canadian version
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Toronto.ms.indd 4 3/24/16 5:59 PM Joe Guzzo-Foliaro, Summerhill Market
of Blue Apron) as a client. Instead of going to lemons and Blood oranges. BIGGEST IN CANADA the store to buy groceries, Chef ’s Plate — for Back at the OFT, Veg-Pak carries many e OFT is the largest wholesale fruit and which Bondi is the exclusive produce supplier unusual products, such as Indian bittermelon produce distribution center in Canada — the — delivers everything needed to cook a meal (also known as karela) and sunchoke. Each terminal is third in North America, after New at home. vendor has a dierent specialty item, says York and Los Angeles — says Bruce Nich- Bondi sells a variety of fruits and vegetables, Carnevale. “e beauty of this place is that olas, manager of the OFT. e facility was plus other items, such as eggs and oil, that everyone brings in something dierent. ere established in 1954. Today it houses 100,000 customers requested. Gus Bondi says the hot is not one day when I walk around the terminal square feet of cold storage, 50 oce tenants, trends are in citrus: Cara Cara oranges, Meyer that I don’t see something I hadn’t seen before.” 500 farmers market stalls, and parking for
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Toronto.ms.indd 5 3/24/16 6:00 PM TORONTO MARKET PROFILE
(L-R) Louie Collins, Danny Simone and Ted Kurtz of Stronach & Sons
(L-R) Ezio Bondi, Gus Bondi and Fabio Bondi of Bondi Produce
(L-R) Rick Carnevale and Vic Carnevale of Veg-Pak
550 employees. produce and oral for the Ontario chain of 29 e terminal serves buyers all over Ontario, stores. “It is very important that we see as much New Brunswick, Prince Edward Island, product as possible before purchasing it to Newfoundland, Nova Scotia, Quebec and ensure that we are delivering the best product Manitoba, and the northeastern United States. possible to our customers. As for anything we Joe Guzzo-Foliaro, one of the terminal’s purchase direct, it’s all about building strong more than 5,000 registered buyers, is at the relationships with our partners and ensuring OFT six days a week, an average of ve hours a they understand what exactly our customers day, visiting every stall. “I’m looking for the best are looking for,” he says. quality, so the customer gets the best quality,” says Guzzo-Foliaro, a produce buyer for the WORKING TOGETHER independent Summerhill Market. If a buyer or chef wants an item Veg-Pak e produce team representing Longo’s doesn’t carry, Tony Dimitri, who handles sales, grocery stores also visits the OFT six days will check with one of the other 21 distributors a week, says Mimmo Franzone, director of in the horseshoe-shaped terminal. “We all try
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Toronto.ms.indd 6 3/24/16 6:00 PM TOP AND BOTTOM PHOTOS COURTESY OF GAMBLES PRODUCE
PHOTO COURTESY OF GAMBLES PRODUCE
to help each other out on the market. We are all Camaraderie also comes from working Je Hughes, president of Gambles Produce. like family, these are great guys,” says Dimitri, together to help the community. e OFT “We respect and admire all the businesses on who has worked for Veg-Pak for 10 years. vendors are involved outside of the terminal the market.” In July, Louie Collins will have been selling through donations to charitable organizations Gambles Produce, which dates back to the produce for Stronach & Sons at the Ontario such as Food Share, Second Harvest and Daily late 1800s, supplies wholesale, retail and food- Food Terminal for 43 years, and legend has it, Bread Food Bank. In an eort to reduce waste service customers throughout eastern Canada. he’s never missed a day. “He’s all personality and supply food banks and meal programs, e present day company was formed in and he’s a hard worker,” says his boss, Teddy wholesalers donate food — produce that may 2002 through a merger of the former Gambles Kurtz, president at Stronach. “Everyone loves not be attractive for display — that is still tasty Produce and the Ontario Produce Company, Louie. Everyone trusts him, because he tells and nutritious for eating or cooking. says Sarah Burroughsford, who is Gambles’ the truth.” “It’s all about relationship building,” says sales and marketing coordinator. pb
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Toronto.ms.indd 7 3/24/16 6:00 PM TORONTO FOODSERVICE OVERVIEW In Toronto’s Foodservice Sector, Produce Gets Much Play
P¨©ª«¬®-¬®¯°¨±¬ ª±¯±¯² ¬©¯¬®³°´ µ±¯ª ¶ ¯±¬·® ±¯ ©¯°¶¨±©’´ ¬¶³±°¶¸.
By Linda Brockman
star in its own right, the vegetable has “arrived” in Toronto. Elevated from its former role as a mere side dish on the omnivore’s plate and as a lead player on vegetarian-only restaurantA menus, the humble veggies do not seek to replace meat, nor to stand beside it, but rather to express avorful versatility. Toronto-based food writer and researcher Mary Luz Mejia says the inventive menus at Toronto’s non-veggie-exclusive restaurants — such as the roasted cauliower drizzled in tahini at the funky Fat Pasha, are making vege- tables appealing, even to “die-hard carnivores.” “I’m nding that more chefs are starting to put vegetables center-of-plate in creative, deli- cious ways,” says Mejia, who writes for Travel & Leisure magazine’s online platform, e Globe and Mail newspaper and Saveur magazine. PHOTO COURTESY OF THOROUGHBRED “People seem to be receptive to creative ways of eating veg-based dishes now more than At Woodlot, fungi is king. e wood-red throughout Ontario. ever; whether in quick service restaurants like Creamy Wild Mushroom Pie with Swiss chard Julian Sarraino, of Fresh Taste Produce in Kupfert & Kim [a wheatless and meatless is featured on a separate vegetarian menu. e the Ontario Food Terminal, is enjoying the QSR in Toronto], or at juice bars where green- Ember Grilled Hen-o’-the-Woods Mushroom challenges of supplying Toronto’s chefs. “ere based juices serve as the afternoon pick-me-up starter is on both the veggie and meat menus. has been a boom in the restaurant business instead of espresso shots.” Sides include seared rapini and warm kale in the GTA [general Toronto area], which Nick Liu, partner and chef at DaiLo, salad. Chef David Haman buys the mushrooms has sparked a new crop of artistic chefs who sees watermelon as something more than a from Forbes Wild Foods in Toronto; and his are requesting certain items,” says Sarraino, refreshing snack at a summer picnic. In his greens from 4Life Natural Foods located in who sells 150 varieties of fruits and vegetables, hands and head, cauliower is curried and the nearby Kensington Market and Cookstown including some lesser known commodities. melons are fried. His uncle’s spicy pickled Greens in ornton, Ontario, about an hour “It is how chefs distinguish themselves,” watermelon rind, wrapped in pork belly, north of Toronto. says Gus Bondi of Bondi Produce in Toronto. battered and fried, was the inspiration. “Vegetables can be the star of the show “We carry the specialty products that chefs “When I recreated the fried watermelon with as much avor and wow factor as any want, like green ai chili and Indian eggplant.” dish, I wanted to base it on opposite contrast other item,” says chef Jason Kalinowski with Bondi’s son, Ezio, agrees. “Today, the — hot and cold, soft and crispy, spicy and Gordon Food Service (GFS) in Milton, back of the house is more important than the cooling, sweet and sour, salty and sweet, fried Ontario. “Preparation and avor pairing is key. front of the house. Consumers follow chefs,” but refreshing. I knew conceptually having all With the rising costs in today’s world, chefs are says Ezio Bondi, who added non-produce these contradicting textures and avors would seeking out cost-e¤ective alternatives to stay on items such as oils and eggs to his inventory, create confusion and excitement. It was only top of prots. Vegetables allowed creativity and to make orders and deliveries more e§cient when we put it on a plate for the rst time we big bold avors to ourish without breaking for the chefs. “anks to social media and realized how well the dish worked,” says Liu, consumers’ banks.” GFS supplies restau- the Food Network, if a chef is good, people who opened DaiLo in fall 2014. rants, hospitals, and hospitality customers will come. pb
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Toronto.ms.indd 8 3/24/16 6:00 PM FOODSERVICE PROFILE TORONTO Thoroughbred
Sª«¬®¯°±²³ V´³´µ¯¶·´ THOROUGHBRED C««¸´¹º «» ¯ C´¹µ¯±² 304 Richmond St. West Toronto, Ontario P´¼±³¹´´ 416.551.9221 tbto.ca By Linda Brockman Tues., Wed. 5 p.m. – 1 a.m. igh school friends Ariel Coplan Thurs. and Jacob Fox opened orough- 5 p.m. – 2 a.m. bred Food & Drink in Toronto’s Fri. entertainment district with a great 11:30 a.m. - 2:30 p.m. & concept — or so they thought. “ e 5 p.m. – 2 a.m. Hhaute dog” would be a house-made tru e Sat. sausage with aioli on a bun freshly baked 5:30 p.m. – 2 a.m. in-house. ey expected a hit, but diners didn’t Sun. order it. 11 a.m. - 2:30 p.m.
Instead, people kept coming back again and again for a dierent menu item — the Kung Pao Cauli ower. “People went crazy for it,” says Coplan, oroughbred’s chef, who nds inspiration in the pockets of ethnic communities dotting the Toronto area. “It is still our best-selling dish.” He poaches cauli ower in a soy-based sauce infused with chili, sugar, ginger and lime, then ash-fries it with cashews. In the past few months, cold weather condi- tions aected the supply of cauli ower, raising its cost. When the partners opened oroughbred in 2014, cauli ower was a little more than $40 PHOTOS COURTESY OF THOROUGHBRED (Canadian) a case. en prices soared to $90 a case for heads coming from outside of Canada. “We had to raise prices, although we didn’t “We are just starting our rooftop garden who handles marketing at the restaurant. double our prices,” says Coplan. “We had to and will be trying to concentrate and bite the bullet a bit on that one.” focus on heirloom varieties of lettuces.” CONNECTING WITH FARMERS Inside the three-story Victorian, patrons can Coplan gets his produce from a variety of NOSE TO TAIL stay at the bar downstairs, where casual food sources, including Bondi Produce . e compa- oroughbred has a separate vegetarian is served, or visit the second oor, for a more ny’s foodservice director, Ezio Bondi, sends out menu, which allows Coplan to make vege- rened menu. e top landing will soon be a market reports to educate customers on prices tables the star. “I like to use vegetables in an wine bar. and what’s happening with crops locally and unexpected manner,” he says. Many dishes e restaurant’s name and mascot suggest in the world. rotate seasonally, such as Butternut squash pedigree, which seems to contradict the restau- “ e reports tell us which crops are natu- lasagna (with Maitake mushrooms, home- rant’s unpretentious vibe and humble chef. rally ourishing,” says Coplan. “Having this made Ricotta and shaved black tru e) and Still, Coplan — even at the young age of 31 kind of a dialogue with the purveyor is helpful mushroom Wellington. — has cooked in Michelin-starred kitchens — and really necessary.” Other veggie dishes are red quinoa beet throughout the world, including New York Growing up in Toronto, Coplan made salad with Radicchio, Blue Cheese and gs; City, the UK and Australia. weekly visits to the farmers market with his charred dandelion; and gnocchi with Jerusalem One of the dishes on the vegetarian menu father. “ at really opened my eyes. Being able artichokes. is called Brussels Sprout 5:15. What are the to have the connection with the farmer made “Everything is on the plate for a reason,” numbers for? A passage in the vegetarian bible: the food taste better. At oroughbred, we put says Coplan. “We like to try to utilize every Chapter 5, verse 15? Or the start of vegetable a lot of pride into utilizing dierent cooking aspect of the vegetable. Sweet potato greens happy hour? Neither. “It is the time it takes to techniques for vegetables,” he says. “Vegetable are incredibly sweet, arugula owers, kohlrabi perfectly smoke the egg,” which accompanies cookery and preparation require equally as greens and stem. Nose to tail. the dish, “so the yolk is still runny,” says Fox, much skill as meat or sh.” pb
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Toronto.ms.indd 9 3/24/16 6:01 PM TORONTO RETAIL OVERVIEW Produce Retailing For Toronto’s Ethnic Diversity E .
By Linda Brockman
alaysian, Portuguese, Korean, Armenian, Filipino, Sri Lankan, Polish, Somali … the list of Toronto’s immigrant communi- ties goes on. As the largest city Min Canada, Toronto is also its most diverse. In fact, Toronto, located in the province of Ontario, is the most culturally diverse city in North America, says Virginia Zimm, president PHOTO COURTESY OF CHALO! FRESHCO. of the Ontario Produce Marketing Associ- ation (OPMA). “e number of dierent this specialized need, but also in knowing his British celebrity chef Jamie Oliver, who demographic pockets in this city is amazing own cultural circle. says Canada holds a place in his heart. In — evidenced by the ethnic ma-and-pa green “e ethnic communities were all servicing late 2015, he opened Jamie’s Italian York- grocers in each neighborhood.” their own demographic with ma-and-pa green dale in Toronto, his ¯rst restaurant in North In his Fresh Taste Produce showroom at grocers,” says Zimm, “until the big boys said, America (with plans for more). the Ontario Food Terminal (OFT), Christian ‘Wait, we should be doing this.’” Oliver is selling his products at Sobeys and Sarraino picks up a cactus pear and shows it to at light bulb went o for Sobeys Inc. promoting healthy eating with “Jamie’s Harvest a customer in the market. “Part of the challenge and Loblaw Companies, two large Canadian Produce Pick,” in which he highlights a fruit of selling 150 varieties of fruits and vegetables grocery chains that are investing in Toronto’s or vegetable and makes serving suggestions from 25 countries,” he says, “is educating the largest ethnic groups. Loblaw bought T&T for shoppers on POS material. One Sobeys public — and retailers too — about the less-fa- Supermarkets, Canada’s largest Asian retailer, shopper surrendered, tweeting: “Every time miliar commodities. It’s all about marketing in 2009, and Arz Fine Foods, a Middle Eastern I walk into Sobeys, the 7-foot cutout of Jamie the health bene¯ts.” grocer, in 2014. Oliver scares the bejeezus out of me. Fine, I’ll at is where Zimm comes in. As presi- Sobeys recognized the need to cater to buy more produce.” dent of the OPMA, she promotes fruits and the local South Asian population with its Working for a small upscale retailer with vegetables on the association’s website. “Very August 2015 opening of the 50,000-square- two stores, Joe Guzzo-Foliaro says he has an often, consumers will ignore an unfamiliar foot Chalo! FreshCo. in Brampton, Ontario, advantage over the larger chain retailers. “It’s fruit, because they don’t know what to do says Rob Adams, general manager, discount the personal touch,” says Guzzo-Foliaro, a with it,” says Zimm. So the OPMA created a format at Sobeys Inc. e location was chosen produce buyer for Summerhill Market. He website called Produce Made Simple, to teach “based on the high South Asian population in has the time to visit produce wholesalers daily consumers how to select, store, and prepare the community, their existing familiarity with and hand-select the best produce, while the fruits and vegetables. ere are recipes too. the FreshCo. brand, and our familiarity with produce buyers at retail chains must make Toronto’s cultural diversity presents many catering to this market.” most purchases over the phone. exotic vegetables to discover. East and South Chalo! FreshCo. — Chalo means “Let’s When it comes to staying ahead of the Asians make up the largest ethnic groups in Go!” in Hindi — is the company’s biggest weather and its eects, Gambles Produce Toronto’s overall population. at is no surprise discount grocery store in Ontario, explains oers weekly market reports to identify to Manpreet Singh, who owns Indian Food- Adams. In addition to the store’s regular current market conditions on major produce land, a small supermarket and tandoori grill food oerings, there is also a restaurant and commodities. in Brampton, Ontario. thousands of South Asian grocery products “e retailer can use it to explain to Singh buys his produce from dierent including fresh specialty produce. “Now, they customers why prices are high and it gives them vendors at the OFT, where he ¯nds the main- can ¯nd the popular and unique products that credibility, because they are knowledgeable stream items like cauli½ower and spinach as they regularly look for and enjoy in one conve- on a global scale,” says Je Hughes, Gambles’ well as Indian okra and bittermelon. His busi- nient location.” president. “Our marketing department helps ness’s success comes not only from recognizing In 2013, Sobeys teamed up with us be proactive rather than reactive.” pb
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Toronto.ms.indd 10 3/24/16 6:02 PM RETAIL PROFILE TORONTO The Big Carrot T .
By Linda Brockman
he Big Carrot began in 1983, when ve employees at a health food store found themselves unemployed. But instead of crying in their wheatgrass, they joined with four other partners Tand put all their eggs (or egg replacer) into one basket to start a cooperative. ey opened a store in an area called Greek- town, or e Danforth, but outgrew the space in a few years. ey moved across Danforth Street to a lot that had previously been a car dealership. e landlord envisioned an envi- ronment of wellness, and dubbed it Carrot Commons, hoping to attract only environ- mentally aware tenants. e Commons’ stores sell gemstones, books and sustainable clothing, and its professional o²ces oer massage therapy and alternative medicine. e produce department carries only fruits and vegetables that are certied organic (with the exception of those that are grown wild) and non-GMO veried. “Our customer base is very intelligent,” says Sarah Dobec, public relations and education THE BIG CARROT outreach coordinator for e Big Carrot. “ey 348 Danforth Ave. ask a lot of questions. ey’re savvy and often Toronto, Ontario bring food issues to us before we know about 416.466.2129 thebigcarrot.ca them.” Mon. – Fri. Since local crops are seasonal, not every- 9 a.m. – 9 p.m. thing is local, but “getting a peach from British Sat. Columbia is better than Argentina,” says 9 a.m. – 8 p.m. Dobec. She says Chris Cascanette, produce Sun. manager, is diligent about sourcing locally. 10 a.m. – 6 p.m.
“I know what I am buying, and I feel good PHOTOS COURTESY OF THE BIG CARROT about it,” says long-time customer Carol Coie of Toronto. “I am particular about my food.” Conned to a wheelchair, Coie feels a sense store, vitamin department and deli/juice bar. key details about each product, giving the of control shopping at e Big Carrot, because Employees do educational outreach, work in consumer a quick measure of how local it is. she can nd products to help her cope with the community and donate a portion of prots When customers spot the Localize label, they health issues, while enjoying a social atmo- to a local farm. can use the app to scan the QR code. sphere. She gets shopping help from Laura, Every fall, during Canada’s National e Big Carrot is still employee-owned one of the Carrot’s 10 holistic nutritionists. Organic Week, e Big Carrot oers farm — with 72 shareholders out of 160 workers. “Without Laura’s help, it would take ages to trips to customers, so they can meet the farmers “We’ve outgrown the old plan, so we intend to get my groceries.” and see where their food originates. revisit the model this year,” says Dobec. “at e 12,000-square-foot building includes In March 2015, the store introduced way we can open ownership opportunities to 8,000 square feet of public space — the grocery Localize, a labeling system that highlights more sta, not just full-timers.” pb
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Toronto.ms.indd 11 3/24/16 6:02 PM PBH Floral.indd 1 3/23/16 5:04 PM MARKET PROFILE DALLAS Dallas Produce Scene D£¤¥¦§£ §¨£ ©£ª£«§ ¬®¤¤ ®¯ ¦§¤ §£©°¦«±¬ °±©²£§, §¨£ ³¦´ µ’¤ ¥©®µ¶ª£ ¦«µ¶¤§©· ª®«§¦«¶£¤ §® §¨©¦¸£.
By Lisa White
allas’ produce industry has been in ux the past couple years mainly due to the redevelopment of its whole- sale market, but that hasn’t slowed business. DIn the spring of 2013, DF Market Holdings purchased the downtown market from the city, and Dallas’ City Council voted to privatize much of the market’s land and property. Although this resulted in plans for a 240-unit residential building, retail and restau- rants, the produce shed that was known as Shed No. 1 was retained by the city and leased to the group. But as of June 1, 2015, the market began transitioning from a farmers market that emphasized local producers to fruit and vegetable stands. Tuesday and Thursday third largest in Texas. e Dallas/Fort Worth/ squash, heirloom tomatoes, microgreens and through Sunday, the market includes only Arlington metropolitan statistical area consists asparagus. local farmers and artisan producers that are of 11 counties, which include Collin, Dallas, “Dallas is unique due to the low cost of growers, producers or makers. ere are no Denton, Ellis, Hunt, Johnson, Kaufman, Parker, living, which allows people to spend money longer refrigerated trucks or reselling of whole- Rockwall, Tarrant and Wise and has a popu- on things they normally wouldn’t, like eating sale produce. lation of more than 6 million. out,” says omas. “e population of the city Monday and Friday, e Shed includes According to the Dallas Convention & increases every year, and the location also is fruit and vegetable stands with produce from Visitors Bureau, the Dallas/Plano/Irving benecial.” other regions. However, the market becomes a metropolitan division is slightly smaller, with Purchased by Lipman in 2012, Combs produce terminal at night, and what isn’t sold a population of more than 4 million and is Produce is one of the country’s largest eld during evening hours can be sold to the public composed of eight counties, including: Collin, grown tomato growers. e full line packer/ at e Shed the next day. Dallas, Delta, Denton, Ellis, Hunt, Kaufman distributor relocated to the east side of Dallas “e Dallas Farmers Market is now more and Rockwall. in March of 2014. trendy and residential, which has driven prop- e Texas Department of Agriculture, “We’re close to Nogales, so we have a lot of erty prices up,” says Andrew omas, controller ranks the state No. 2 for total agricultural produce coming in from Mexico,” says Brett at wholesaler omas Mushroom & Specialty receipts, behind California. e leading fruits Combs, general manager. Produce Inc. “As a result, companies like ours produced in Texas are watermelons, grapefruits Business has changed dramatically in the are relocating to other areas of the city.” and cantaloupes. Key Texas vegetables include last decade, with Combs working with broad- Although omas says this hasn’t yet onions, potatoes, mushrooms and cabbages. liners and national chains to cover a seven- impacted business, he expects the anticipated state region. e company also began tomato additional overhead will eventually aect WHOLESALE REINVENTION processing, which is the focus for the future. omas Mushroom’s bottomline as well as Even with no centralized terminal market, “It’s a rapidly growing region, and one of delivery times. the wholesale business in the Dallas area the fastest growing cities in the country,” says Despite challenges, the city’s produce remains strong and includes a wide range of Combs. “People are coming here, rather than industry continues to thrive. According to diverse companies. leaving, including Fortune 500 companies.” Chain Store Guide’s market share report, Dallas Established in 2004, omas Mushroom Yet the city’s centralized location also can is the ninth largest city in the U.S. and the sells specialty product, including herbs, baby be a detriment.
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Dallas.indd 1 3/24/16 4:16 PM DALLAS MARKET PROFILE
east beyond Dallas — is known to be diverse. “With people living here whose origins are in Latin America and from Europe to Asia, it is important to oer fresh avors for all major cultures,” says Robert Gordon, FreshPoint’s president. “e population growth in North Texas includes so many people who hold dear their cultural traditions, but are also extremely food savvy.” FreshPoint leverages many of its nearby produce sourcing partnerships to ensure restau- rants in the region have good local options. “Among the trends we continue to address is substantial growth in the organic sector; produce moving to the center of the plate at some restaurants; a focus on seasonal produce; demand for more availability of Texas and locally grown produce; many specialty items becoming more mainstream items; and a continued consumer appetite for health foods and more nutritionally dense foods,” says Gordon. Pepe’s Produce has been in the industry for about five years, starting off in an
PHOTO COURTESY OF FRESHPOINT 11,000-square-foot building and three years later moving into its current 43,000-square- foot space. e company caters to the Hispanic “Our customer base has easy access to in Dallas include an increasingly competitive market, but also works with mainstream produce, so these people can source it them- marketplace and a wide variety of product that produce lines. selves,” says Combs. leads to a big variation in quality, condition and “Many produce companies don’t cater to A-1 Produce is a buying broker that has subsequently, pricing. other ethnicities like we do,” says Ramon been in business since 2001. e company “Dallas is located in a southern state, thus Carrasco, general manager. “ere are about handles a variety of produce out of south making cold chain management for fresh ve states bordering Texas, and we sell to them Texas and Mexico for its retail and foodser- produce a challenge,” says Christou. “Produce all.” vice customers. companies must work very hard to keep the e company plans to relocate from its “e biggest benet in doing business in products consistently cold, even when it’s current location near the Dallas Farmers Dallas is the friendly people and close-knit 105 degrees during the summer. e slightest Market in the next two years. community,” says Scott Marble, managing glitches in the process can easily aect quality “Many companies moved to the city’s salesman. “It has been more dicult with the control and food safety.” outskirts, such as Mesquite, Garland and market disbanding.” Still, the location, proximity, diversity of Duncanville,” says Carrasco. “Despite the Truck driver deliveries take longer, and the products and growing populations are all market dissolving, we increased business 15 number of produce companies has decreased driving factors for the Dallas market. to 20 percent in the last year.” because of consolidation. “Dallas is an ideal location for large Harrington Produce Co. is a wholesale “ere are not as many rms like ours as companies with big distribution centers,” warehouse that has been impacted by the there used to be, since they are buying out one says Christou. “In addition, most of the changes in the Dallas produce industry. another,” says Marble. “ere used to be 10 to major players in the industry are located here, “Everyone wants to buy direct, we’re like 12 places that sold Asian products and now including Wal-Mart, Kroger, Albertsons, a dinosaur,” says Cli Yarborough, general there’s between eight and 10.” Sam’s, etc. ere is also a large number of manager. “With the Internet and today’s tech- “Dallas is located in one of the most conve- retail, wholesale, foodservice, c-store, and more nology, people are doing things themselves.” nient, central locations in North America,” recently, home meal replacement providers.” e company uses local farmers out of says Dionysios Christou, vice president of FreshPoint, a Sysco company, also is a Lubbock, TX, for yellow squash, zucchini and marketing for Miami-based Del Monte Fresh leading fresh produce distributor based in the turnips, and also sources turnips out of San Produce N.A., Inc. “Its proximity to Mexico city. It has an inventory of more than 3,800 Antonio. Its greens come out of McKinney and both U.S. coasts, in addition to growing items including specialty produce, organic and cucumbers are sourced from Mexico. areas, gives Dallas produce marketers the produce, locally grown produce, retail goods “We try to buy pole cucumbers that aren’t opportunity to pull product from all these and imported goods. grown on the ground, since they don’t have a locations readily and easily all year long.” e North Texas market — stretching from yellow belly,” says Yarborough. “Logistically, Dallas also benets from its ethnic diversity. west of Fort Worth, down to Waco, past Frisco/ Dallas is a good place to be; it’s a big hub in Still, the main challenges of doing business Allen/Plano to the Red River region, and well the center of the country.” pb
84 / APRIL 2016 / PRODUCE BUSINESS
Dallas.indd 2 3/24/16 4:18 PM RESTAURANT PROFILE DALLAS Spiral Diner and Bakery PHOTO COURTESY OF SPIRAL DINER AND BAKERY T ¡¢£ ¤¥¦§¢ ¨£©¡¥¦ ª£¡« ¢ £¬ ®¬. By Lisa White
oth the retail and restaurant indus- tries in the state are on a growth trajectory. In 2015, the National Restaurant Association reported Texas’s restaurants, which accounted Bfor 1,182,900 jobs (or 10 percent of the state’s employment), were projected to register $44.5 billion in sales. According to the Texas Restaurant Asso- ciation, in 2013, there were 41,678 eating and drinking places in Texas and the segment’s job growth is anticipated to be 22 percent in the next 10 years. Spiral Diner and Bakery is a Texas success story. e restaurant’s rst location opened in 2002 by Amy McNutt in Fort Worth. Manager Sara Tomerlin saw an opportunity and opened the diner’s second location, which is separately owned and operated, in 2008. “We’re separate companies as far as nances, but the menu and philosophy are the same, “ says Tomerlin. A traditional burger in appearance, texture, and taste — piled high with lettuce, tomato, red onion, pickles, is 80-seat vegan diner has a traditional mayo, ketchup, and mustard — the Spiral Burger’s patty is made of soy protein. style, décor and menu. “e idea is that we’re serving comfort foods ingredients with produce become more popular SPIRAL DINER AND BAKERY that people grew up eating, but in a vegan in the past 15 years,” says Tomerlin. “For 1101 N Beckley Avenue version,” says Tomerlin. example, kale is really trendy now.” Dallas, TX 75203 is includes burgers, sandwiches, pastas, Organic produce is used as often as possible, Tel: 214.948.4747 shakes, baked goods and ice cream. All items and local products are sourced frequently. www.spiraldiner.com are made in-house from scratch. ere also “e produce we order pretty much stays Closed Monday Tue-Sat. 11 a.m. – 10 p.m. is a menu of rotating blue plate specials that the same with the exception of the blue plate Sun. 9 a.m. – 5 p.m. (Brunch Menu All Day) include items like meat loaf curry. Being special, and we try to order local where we vegan, no ingredients at this eatery come can and look for minimal fruit and vegetable from animals. No meat, dairy, eggs or honey processing,” says Tomerlin. “It depends on the When Spiral Diner’s second location are used. All ingredients are plant-based and seasons, but we don’t position ourselves as a opened, it was the rst eatery of its kind in cholesterol-free. farm-to-table concept.” the neighborhood. In the past seven years, “But we don’t position our menu items as Specically with tomatoes, Texas farms more independents have arrived. health food,” says Tomerlin. “Instead, we really don’t use wax coatings, which Spiral Diner Its customer base has expanded, as well, focus on taste and familiarity — since we still avoids due to being a vegan restaurant. from mainly vegans and vegetarians to main- use sugar and oil and other ingredients that Tomerlin says there is denitely a push stream diners. are not necessarily health oriented.” toward independent restaurants in Dallas, as “Our food tastes like traditional diner fare Produce is a big part of Spiral Diner’s menu. opposed to big chains. so, over time, our clientele has broadened quite e restaurant gets fresh produce daily. Among “People are going to the chains less often a bit,” says Tomerlin. “Now, way less than half its popular items are salads and grilled veggie than before,” says Tomerlin. “We’re in a trendy of our customers are vegan or vegetarian.” bowls. Dressings and sauces are made in-house neighborhood that includes all small, indepen- Instead, there are an increasing number of using fresh herbs and tomatoes. dent chef-driven restaurants that oer high- Millennials who are environmentally conscious “In terms of produce trends, we’ve seen quality food.” supporting the concept. pb
PRODUCE BUSINESS / APRIL 2016 / 85
Dallas.indd 3 3/24/16 4:19 PM DALLAS RETAIL PROFILE Terry’s Supermarket E
By Lisa White
pecialty markets, including Sprouts Farmers Market and Fresh Market, are an expanding presence in the Dallas area due to the increasing retail development and population growth. STerry’s Supermarket is a nine-store inde- pendent business that has been in operation for the past 21 years. e last store was added three years ago. “We have so many retailers, it’s basically equal in terms of chains and independents,
but independents are very strong here, “ says PHOTOGRAPH OF LEWISVILLE, TX, LOCATION TAKEN BY DON BAIRD Tony Macaluso, who heads procurements for Terry’s Supermarket is a nine-store independent business that has been in operation for the past 21 years. the retailer. Stores range in size from 20,000 to 100,000 square feet. In addition to two stores in Dallas, Terry’s has locations in Fort Worth, the Dallas suburbs of Plano and Douglasville as well as a site in Oklahoma City. Its stores are mainstream, but the demographic is largely Hispanic. TERRY’S SUPERMARKET Produce is a big component of Terry’s. 4444 W. Illinois Ave. Suite 100 “It’s basically 22 percent of our business,” says Dallas, TX 75211 Macaluso. Tel: 214.339.2274 Fruits and vegetables are sourced from Florida, California and Texas. 3025 Webb Chapel Ext. “It’s about supply and demand,” says Maca- Dallas, TX 75220 luso. “We try to buy as much as possible locally, Tel: 214.956.9112 but not a lot of produce is available in Texas during certain times of the year.” During the peak season, however, all of Terry’s produce comes from Texas. On the o season, much of its supply is from Mexico. “When it comes to produce trends, it Terry’s Supermarkets range in size from 20,000 to 100,000 square feet. depends on the season,” says Macaluso. “Right Its stores are mainstream, but the demographic is largely Hispanic. now, we’re limited in soft fruit, since it’s hard fruit season with apples and oranges.” Best-sellers include avocado, peppers and in Dallas, produce is a key component of all Winter is a prime time for grapes, which are other Hispanic items. Terry’s also has a strong supermarkets, even the big box stores.” sourced from Florida, California and Mexico. Asian produce business in some of its stores, He estimates that in typical grocery stores, African Americans tend to look for greens, with pea pods and kimchee selling well. produce is 6 to 10 percent of the oerings, including turnip, mustard and collards. On the retail trade, Terry’s has benetted whereas those that cater to Hispanic and Asian “We try to source locally whenever possible from Dallas’ reputation as a mega point for customers have an even higher percentage of to fulll customer demands,” says Macaluso. produce shipments. fruits and vegetables. “And we try to accommodate customer “We have a tremendous range of produce “We’re always looking for dierent varieties requests, because if we can’t, they go some- available in the city,” oers Macaluso. “is of produce,” says Macaluso. “We look for items where else. It’s a very competitive business and increases the freshness and aordability. Here customers request during the dierent seasons.” becoming more competitive every day.” pb
86 / APRIL 2016 / PRODUCE BUSINESS
Dallas.indd 4 3/24/16 4:19 PM Amsterdam PS.indd 1 3/15/16 11:44 AM SPECIAL REPORT
PRODUCE BUSINESS’ A First Hand Account: Mira Slott interviews Burgeoning Lieve Wittemans. Prospects In Belgium PRODUCE BUSINESS is invited for an exclusive produce tour hosted by VLAM, Flanders Agricultural Marketing Board
REPORTING BY MIRA SLOTT PHOTOGRAPHY BY JULIA SELTZER
ur whirlwind, exciting two-day acknowledges Dominiek Keersebilck, sales procedures, the chance for Belgium’s globally tour of Belgium’s fruit and vege- and marketing director for REO (Agricultural popular Conference pears to hit U.S. super- table supply chain included visits Auction Market for Roeselare and surrounding market shelves is within grasp, according to to its auctions, small co-op area). REO is a cooperative fruit and vegetable Van der Sypt. growers, customized production auction, where more than 3,000 producers e USDA draft rule set the steps in Ofacilities, and an innovative research station. market an average of 60 dierent types of motion in January to accept apples and pears Meetings with agricultural sector ocials and vegetables, auctioned six times a week. from eight EU countries, including Belgium. produce experts revealed business opportu- U.S. consumers are treated to iconic “e process involves new measures we nities for U.S. retail buyers and distributors. Belgium endives — the country’s largest U.S. have to take during the growing season, and VLAM, Flanders Agricultural Marketing vegetable export (some 1,600 tons exported of course establishing the commercial rela- Board, headquartered in Brussels, is a nonprot to the U.S. in 2014) — and to a lesser extent, tionships,” says Appeltans. promoting the sale, added value, consumption, celery, shallots, asparagus, and leeks, respec- “We remain positive for the near future. and image of products and services of the tively, explains Veerle Van der Sypt general We’re quite optimistic we will soon have a Flemish agriculture, horticulture, shery and secretary of Fresh Trade Belgium (the associ- breakthrough,” adds Van der Sypt. agro-alimentary sector in Belgium and abroad. ation representing the importers, exporters and e pear variety’s potential entree to the U.S. e organization launched this unique produce wholesalers, fresh-cut companies and logistic market would piggyback o Canada’s allow- sector excursion in February as part of a broader service providers). ance last year to import Belgium’s Conference strategy to strengthen and expand the country’s Nonetheless, Keersebilck is determined pears. An aggressive promotional, marketing export reach, bolster brand messaging, and to change that: “If a supermarket or whole- and in-store tasting campaign made inroads build bilateral and multilateral partnerships, saler wants to work with us, we’ll do anything in Canada, according to Miguel Demaeght, explains Leen Guens, VLAM’s press ocer, necessary to get that certication.” division manager sales, BelOrta (Europe’s who jointly facilitated the itinerary with Gert VBT (Association of Belgium Horticul- largest cooperative auction) with a turnover of Van Causenbroeck, export manager at VLAM. tural Cooperatives) represents the interests more than 350 million EUR. Since 2015, this Forging through the cold torrential rains of Belgian producer cooperatives in the fruit division became the hub for Conference pears and blustery winds, executives from across and vegetable sector. In fact, Belgium exports a destined for Canada. e goal: introduce and the supply chain warmly hosted P signicant amount of its total production, but educate Canadian consumers on the inherent B and partner P B when segmented by country, the U.S. market virtues and characteristics of Conference pears, UK. While fruit and vegetable trade ows blends into the relatively marginal “other” cate- which are available from mid-September to more readily between Belgium, Europe and gory, according to Philippe Appeltans, general end of April, he says. the U.K. — due to logistics and geographical secretary of VBT. Such virtues [“delicious; both hard and proximities — capitalizing on the scope of Cautiously optimistic, after more than crispy, or soft and sweet; good shelf life; and Belgium produce exports and market pros- six years of government negotiations to storing capacity; high quality cultivation, pects for the U.S. proves more challenging, meet phytosanitary concerns and other strict unique elegant shape; and long availability”]
88 / APRIL 2016 / PRODUCE BUSINESS at rst sight may elude retailers and shoppers auction system grounded in transparency, tive. (GRI is an international independent unfamiliar with the variety — creating a di- explains Tom Premereur, market manager at standards organization that helps businesses, cult sell if not marketed properly, according to REO. Its global reputation centers on co-op governments and associations understand and VLAM’s Van Causenbroeck. grower compliance of quality and food safety communicate their impacts on issues such as “Conference pears have a brown/copper production guidelines and premium-brand climate change, human rights and corruption.) appearance. If you don’t know the pear variety, product standards and specs to nurture trust Products are produced with attention to customers and consumers think it is overripe. between buyers and suppliers, according to balance people, planet and pro t. To use the In every market we launch the variety, we Premereur. Integrated, streamlined logistics Responsibly Fresh label, producers must ful ll have to educate. Even in the Russian market and strategically located transportation hubs a set of recognized quality systems and sustain- 15 years ago, there was initial resistance to connect the supply chain and provide trace- ability conditions. Conference pears. Now, it’s the same in Canada ability, which gives auction buyers con dence “We measure the progress of the growers and India,” he says. and exibility, adds Keersebilck. through inspections by external bodies on a “We have to convince people, ‘Please try In addition, sustainability/corporate social continuum, because we have to make advances it; taste it,’” adds Appeltans, “and that will responsibility play a fundamental role. “We in sustainability collectively,” says Appeltans. involve educating our colleagues from the decided to not make sustainability a compet- Collective advances extend to scienti c United States.” itive issue between us, because it’s a task for product research and innovative pilot testing “Tastings really have an eect, says VLAM’s the entire sector to move forward on together,” in tandem with the growers to address speci c Guens. “If people taste Conference pears, says VBT’s Appeltans. needs, and to stay on the cutting edge of they’re hooked.” Van der Sypt says they developed a industry development. We witnessed a range Belgium’s push to create new marketing multi-layered concept called “Responsibly of trials at dierent stages during our visit opportunities abroad was expedited following Fresh,” based on the Global Reporting Initia- to Belgium’s nonpro t, Research Station Russia’s punishing food-import ban starting for Vegetable Growth (Proefstation voor de in August 2014 in retaliation for EU and U.S. Groenteteelt or PSKW), which is based in sanctions over Russia’s annexation of Ukrainian BelOrta’s Miguel Sint-Katelijne-Weaver — a major vegetable Demaeght carrying peninsula, Crimea, and actions in Ukraine. Conference pears. production region. e ban generated a debilitating impact on “In many ways, we are like a small grower,” certain Belgium commodities, particularly says Lieve Wittermans, a specialist in glass- stinging Conference pear producers, who were house production and scienti c assistant heavily dependent on Russia — it’s main export at PSKW, who works closely with auction market, according to Appeltans, who notes cooperatives, a primary focus. For instance, Belgium is the biggest supplier of Conference “We give them advice on quality standards for pears worldwide. dierent varieties based on scienti c analyses. “e Russian ban not only aected fruit Often there can be external pressures to accept and vegetables but the ‘aisle-food’ business new varieties and it’s easier to have objective in Belgium and Europe in general. We said, standards.” let’s join forces to pro le ourselves under the But that only touches the surface. Research promotional ag, Food.be: Small country. Great spans varietal experimentation, energy and food,” explains Van der Sypt, pointing to a coor- climate steering, water conservation and dinated, multifaceted eort among agri-food diversi cation techniques, innovative growing sectors, government agencies and private orga- systems, waste management, food safety, and nizations within Belgium and across oceans. labor issues through mechanization, automa- e Belgium produce sector thrives under tion and ergonomics; always weighing the a highly organized and controlled historic economic viabilities. pb
[Editor’s note: to get a more detailed account on solutions to cross-border vegetable challenges, you can go to our online sister publication ProduceBusinessUK.com to read Gill McShane’s article, “Belgian research institute seeks solutions to cross-border vegetable challenges.”]
PRODUCE BUSINESS / APRIL 2016 / 89
Belgium.indd 2 3/24/16 9:19 AM merchandising review tomatoes Maximizing Tomato Sales With Purpose
Understanding key drivers Fresh Produce North America, Inc., Coral varietal oerings as breeders have come to behind the proliferation of Gables, FL. understand consumer needs better in terms of the tomato category increases As consumption has grown, so has category size, shelf life, texture, rmness and especially sales by targeting merchan- diversity. “ere’s so much more to the category avor,” explains Fried De Schouwer, president dising and marketing to meet now,” says Rick Feighery, vice president of of Greenhouse Produce Company in Vero sales for Procacci Brothers Sales Corp. (parent Beach, FL. consumer needs. company of Santa Sweets, Inc.) in Philadelphia. According to Dr. Roberta Cook, “In any given produce department, you see cooperative extension marketing economist in BY JODEAN ROBBINS dierent sizes, dierent shapes, dierent colors, the Department of Agricultural and Resource and dierent packages.” Economics at University of California, Davis, n recent decades, the powerhouse Jim Darroch, director of marketing for CA, dierentiation is a key motivator. “Fresh tomato category moved from a Backyard Farms in Madison, ME, explains tomato types proliferated as farms pursue price-conscious bulk commodity to the enormous year-round diversity in the product dierentiation in a mature market,” a bountiful mélange of sizes, colors, category compared to 20 years ago stimulates she says. “Types now grown solely as ‘eld- production methods and packaging consumption. “Consumers have more fresh grown’ include: mature green round tomatoes, with year-round availability. “Tomatoes have tomato choices today than ever before,” he vine-ripe round tomatoes, and tomatillos. become a destination center,” says Richard says. “Providing consumers year-round access Products grown under ‘protected production’ IStiles, director of produce and oral for to an incredibly versatile fruit is a great asset include: Beefsteak/round tomatoes with calyx, Redner’s Markets in Reading, PA. “ey are for any produce department.” Tomatoes-on-the-vine (TOV), Campari an important part of meals and the variety and other specialties. Both eld-grown and provides consumers with options for many DRIVE SALES WITH VARIETY protected culture include: grape tomatoes, other uses.” Retailers that capitalize on the increasing Romas, cherry and heirloom.” With U.S. consumption at around 6.5 demand for tomato options by consumers will Statistics collected by Cook from the billion pounds, according to USDA Economic see sales increase. “Variety drives sales,” says Nielsen Perishables Group Fresh Facts show Research Service data, tomatoes represent Redner’s Stiles. “Customers will buy more than decreasing market share for the traditional signicant market share. “Tomatoes remain one type of tomato. New tomatoes are adding tomato and increasing interest in the “newer” one of the most consumed produce items in sales to the category because customers are comers. Field round and hothouse round the U.S. — making it a necessity for retail using tomatoes for many dierent purposes.” represent only 14 percent and 13 percent produce departments to have high-quality is consumer demand spurs innovation of volume retail category sales respectively. tomatoes available year-round,” says Dionysios in various aspects. “e greenhouse tomato Romas boast 30 percent, and TOV’s capture Christou, vice president marketing, Del Monte category has been and will be driven by 23 percent.
90 / APRIL 2016 / PRODUCE BUSINESS NatureSweet.indd 1 3/16/16 3:54 PM merchandising review tomatoes
“Protected culture tomatoes, including hi- of sales for the category at Procacci. “For tech and low-tech production, captured the example, if you’re marketing in an upper- majority of the retail tomato category while middle-class neighborhood, you might have eld production has retreated to control the more greenhouse or snacking tomatoes. In the foodservice demand,” says De Schouwer. Hispanic markets, we see better movement However, the newcomer Snacking with Roma over heirlooms. Each store must Tomatoes segment captured 20 percent of the analyze and assess what people are buying category by volume and 31 percent by dollar and what they’re not — that’s ultimately what value, according to Cook’s statistics. “New determines your mix.” snacking varieties for the tomato category have been instrumental in expanding the FOCUS ON PURPOSE consumption especially for consumers on- Leading retailers and suppliers recommend the-go and those with busy lifestyles,” says focusing tomato merchandising on each Del Monte’s Christou. product’s purpose for the consumer. “You e increasing options present opportunity now see a lot more branding to purpose,” for retailers to merchandise to specific says Doug Kling, senior vice president and consumer demand. “e No. 1 suggestion for chief marketing ocer for Village Farms in merchandising tomatoes is for the retailer Lake Mary, FL. “Instead of saying, ‘is is to understand their customer base and what a tomato, and it’s 50 cents’; we say, ‘is is a motivates them to purchase,” says Elijah Booth tomato, and here’s what it will do for you.’” Ornstein, chief operating ocer at Eli & Ali in Procacci endorses focusing on usage to Brooklyn, NY. “You could have the best tasting encourage multiple purchases. “Promoting tomato in the world but if your customers are functionality encourages people to buy dierent driven by price, it won’t matter. Conversely, you types of tomatoes,” says White. “You may buy could have the cheapest tomato, but if your vine-ripe-round tomatoes for a sandwich, but customers value taste, then price isn’t priority.” use grapes for snacking.” “Product mix depends on the demographics e old marketing adage of selling the of store customers,” says Ken White, director benet instead of the feature holds true in
92 / APRIL 2016 / PRODUCE BUSINESS FL Tomato.indd 1 3/16/16 3:48 PM today’s tomato category. “Attributes of tomatoes the dierent shapes and colors of specialty are extremely important,” explains Kling. “I tomatoes to separate, draw attention and keep want to speak of those attributes important items from blending together,” says Riehm. to my customers in my merchandising. Do I Del Monte’s Christou emphasizes the need POS on health and wellness, or should signi cance of the appearance of the category. I focus on locally grown? Are my customers “Packaging and color play a crucial role in interested in something hydroponically grown merchandising the product and driving impulse and sustainable? Analyze the bene t you need sales,” he says. to highlight to connect with those shoppers.” to produce is through cross-merchandising. Babbs’ Fisher says packaging may draw Redner’s considers the “local” attribute “Tomatoes oer many cross-merchandising consumer interest to certain products. “With crucial to its tomato merchandising plans. opportunities, because they can be combined the Cherubs, the packaging is quite nice and “Local tomatoes are a bigger deal every year,” with a wide variety of items,” says Christou. you can see more of the tomatoes than other says Stiles. “Customers are disappointed when “We recommend cross-merchandising Del packaging,” she says. “It seems the packaging the local season is over. Retailers must highlight Monte tomatoes with other Del Monte catches their eye and stimulates sales.” local production and make a big deal about it.” products such as avocados, onions and peppers “Experiment in cross-merchandising,” During its local season independent retailer and with packaged salads, fresh basil, garlic, advises Ornstein of Eli & Ali. “Try new things Babbs Supervalu in Spencer, IN, sells a high and dressings. Cross-merchandising tomatoes and push boundaries. So many great recipes are volume of “homegrown” tomatoes. “During outside the produce department with non- out there requiring tomatoes. A retailer could summer, all our shoppers care about are slicing produce items such as sandwich items, pastas, do weekly specials based on unique recipes and tomatoes because of the local aspect,” reports deli meats, and cheeses such as Mozzarella is cross-merchandise pro table products with the Tina Fisher, assistant produce manager. also eective.” tomato display.” Displays should be built to highlight Redner’s cross-merchandises with other dierent types and uses. “Tomatoes are produce department items in its tomato GET SHOPPERS TO TASTE displayed differently based on size and destination section and also places tomatoes Any good merchandising strategy should consumer desire,” says Roger Riehm, owner/ throughout the store. “Cross-merchandising not overlook the importance of avor. “Flavor president of Blue Creek Produce in Saint always yields multiple sales,” says Stiles. is at the forefront of everything in food, and we Charles, IL. “Heirloom tomatoes, mixed “We’ll put tomatoes in the pasta aisle and see it so prominently important in tomatoes,” cherry/grape and specialty tomatoes in a clam merchandise with olive oil and basil or by the says Procacci’s Feighery. shell, as well as pear tomatoes all have a unique cheese case, usually with basil to suggest use e best way to communicate avor is look and avor that should attract consumers in a Caprese salad. We also put them near the through sampling. “Sampling is extremely to the category and make sales stronger.” meat case, particularly in the summertime, to important because the proof is in the pudding,” use on hamburgers.” says Kling. “Sample tomatoes with a little bit MAKE SUGGESTIONS Cross-merchandising also helps draw of sea salt in a cup. When chains sample, they One of the best ways to draw attention attention to the category. “Many retailers use typically see a 30 to 60 percent lift based on the
MAKING THE ‘ROUNDS’ Focus on flavor and purpose to keep traditional tomatoes in the mix. BY JODEAN ROBBINS Although novelties and snackers and round tomatoes are used heavily in consumers and added sales to retailers.” may hog the spotlight recently, industry ads for price attention to drive customers Consumers can also be captivated marketers still emphasize the importance to stores to buy in bulk quantities,” says with the unique look and story of heir- of carrying more traditional tomatoes in Riehm. “TOVs and other specialty toma- looms. “Heirlooms usually derive from a the mix. “Slicers, TOV, beef tomatoes and toes are priced higher due to less volume.” uniquely shaped, sized, or colored variety others are equally as important to carry,” Retailers are encouraged to market of tomato,” says Paone. “It serves as eye says Dionysios Christou, vice president creatively and think out of season. To candy to garner interest, but the taste marketing at Del Monte Fresh Produce promote UglyRipe Heirlooms, Procacci brings home the sale. These varieties and North America, Inc. in Coral Gables, FL. Sales Corp in Philadelphia, previously ran brands usually have a great story set in The more traditional tomatoes still hold a “taste of summer” campaign in the dead nostalgia behind them, and consumers can a place in the market, and retail can utilize of winter. “There has always been a gripe be roped in with these interesting facets.” them by promoting specific uses. “Beef- about finding good winter tomatoes in the Due to their outstanding flavor, steak, round tomatoes and TOVs tend to Northeast,” says Frank Paone, director of sampling is a great tool for heirlooms. be used in the summer months when cook marketing. “This campaign provided POS “Heirlooms are one of my favorites,” says out and grill seasons are in full swing,” materials for retailers as well as social Richard Stiles, director of produce and says Roger Riehm, owner/president of interaction and content for consumers. floral for Redner’s Markets in Reading, Blue Creek Produce in Saint Charles, IL. We look back at the success of campaigns PA. “If you can get people to try them, Stores may use certain tomatoes to such as this and others to determine they’ll buy them. I predict greater draw price-conscious consumers. “Roma how we can continue providing value to growth in the heirloom category.” pb
94 / APRIL 2016 / PRODUCE BUSINESS channel, consumer and item. Some chains see know our varieties and expert handling always and better trust with our brand and our team.” even more. If you have something that knocks provides a bright red, meaty cutting tomato.” people over, they’re going to buy it.” Stores can also work with supplier- CONVEY HEALTH AND WELLNESS Redner’s is a big proponent of sampling. marketers to harness the popularity of social Stores are encouraged to place particular “We know taste sells,” says Stiles. “Especially media. “Everyone seems to be a foodie, and attention on the health and wellness aspects when customers haven’t tried newer varieties; everyone loves being on social media,” says of tomatoes. “Awareness of health, wellness for every one you get to sample, you get a new Paone. “e best campaigns we’ve seen are and diet is important to today’s consumer,” customer.” those indulging these two joys of life. We get says Kling of Village Farms. “In the past two However, stores are cautioned to ensure people to post online and share fun pictures to three years, snacking tomatoes have become tomatoes are consistently avorful. “Nothing and recipes. e best marketing gets your more popular because people are using them is more irritating to a consumer than having consumers to interact with the product on as a healthy alternative to other snack foods.” to pick out a tomato having no idea how long a deeper level to build a greater connection Redner’s reports a denite advantage for it will last, how it will cut, or what its taste will be from week to week,” says Josh Wanless, vice president of business development at Lucky’s Real Tomatoes in Brooklyn, NY. “Consumers look to our brand to provide a consistent product. Variety and branding are the solution.” Kling reports most growers have a passion for what they do, and he encourages retailers to source from passionate people. “We grow 80 percent of what we sell in our own facilities,” he says. “We understand what we do when it comes to crop selection and avor as well as safety, because we’re on top of it with our growers and partner growers.”
CONNECT WITH CONSUMERS Stores can build interest in products by connecting customers with product stories. “A lot of these varieties have great stories behind them,” explains Frank Paone, director of marketing for Procacci. “When you garner interest from consumers with a great backstory and then deliver a great-tasting product, you have a great shot to win them over and provide value to retailers in return.” Case in point, Procacci’s UglyRipes have a loyal following. “We get emails from consumers thanking us and connecting with us because they love our product,” says Feighery. “A brand has the ability to earn life-long trust with the consumer.” Del Monte suggests eye-catching, useful signage and materials to make connection. “POS should be relevant and creative,” advises Christou. “Signage should always inform consumers about the dierent usages and occasions for the product. Recipe cards should be placed directly next to the product in order to drive sales.” Stores can also make a consumer connection through cutting product. “One of the biggest things we can do at store level is to actually cut tomatoes on displays,” says Wanless of Lucky’s. “Watermelon and other fruit categories do this to show how great the fruit looks and smells inside. We highly suggest this since we
PRODUCE BUSINESS / APRIL 2016 / 95 merchandising review tomatoes
linking health benets to items. “Promoting ough the much-touted demographic wellness benets for tomatoes increases sales currently tends to be the Millennials, Kling of various types,” says Stiles. cautions merchandisers not to overlook the Merchandising wellness incorporates a segment with the most spending power. variety of demographics from seniors to kids. “Millennials are important for the future, but “As the emphasis on healthy lifestyle grows, over 70 percent of the disposable income is families reach out to produce for healthier in the hands of Baby Boomers,” he says. “e alternatives for their kids,” says De Schouwer Boomers prioritize health and wellness, so of Greenhouse Produce. it’s important to not ignore any segment.”pb
TIPS FOR MINI’S, SNACKERS AND SPECIALTIES Draw customer attention to these fun and unique tomatoes to sell more. BY JODEAN ROBBINS The fast-growing segments of mini, we’ve seen consumers take the recipe snacker and specialty tomatoes present card and all the ingredients from the great opportunities for retailers to display and place them in their cart.” differentiate their tomato display. “We “Cross-merchandising with recipes is sell more of snacking than the slicing crucial for these products,” says Elijah tomatoes,” reports Tina Fisher, assis- Booth Ornstein, chief operating officer tant produce manager at independent at Eli & Ali in Brooklyn, NY, regarding Babbs Supervalu in Spencer, IN. “The snacking and specialty tomatoes. “Educa- cherubs especially are an excellent tion is the No. 1 tool for increasing sales.” product. They tend to sell better than The smaller-sized tomatoes are regular cherry or grape tomatoes.” ideal for cross-promotion with salads. The first step in successful merchan- “Grape, cherries and specialty toma- dising is visibility, and Procacci Sales Corp. toes are used more for salads during in Philadelphia, emphasizes the impor- the holiday and party seasons,” says tance of this in attracting consumers. Roger Riehm, owner/president of Blue “Make sure they show,” advises Frank Creek Produce in Saint Charles, IL. Paone, director of marketing. “Pack- Retailers can also promote snacking ages should not be hidden by any tomatoes to kids. “If it’s soccer or other products. The display should not baseball season, show POS of kids appear cluttered from being stacked up.” eating snacking tomatoes,” recom- Backyard Farms in Madison, ME, devel- mends Douglas Kling, senior vice oped a 360-degree merchandiser that president and chief marketing officer can be placed virtually anywhere in the for Village Farms in Lake Mary, FL. department and still provide the consumer New varieties and packs developed with access to the product from every by suppliers offer retailers easy and innova- angle. Jim Darroch, director of marketing, tive items to meet consumer demands for emphasizes one golden rule: “Don’t stack flavor and convenience. Del Monte Fresh tomato boxes five to six layers high,” he Produce of Coral Gables, FL, launched its cautions. “Some retailers favor large Bon Bon grape tomato in April 2014. “This multi-layered tomato displays to draw super sweet tomato comes in two different consumer attention into the produce containers,” says Dionysios Christou, department. These displays look nice; vice president marketing. “The first is a however, unless your turnover is extremely grab-and-go, 5.5-ounce cup. The second fast, your shrink will be high. Two to alternative is in a 10-ounce proprietary three layers is the right balance between tomato-shaped clamshell with multiple visual impact and product integrity.” display options for maximum appeal.” Snacking and specialty tomato Retailers can also attract consumer purchases can also be stimulated with interest by drawing attention with recipes and demos. “We found creative, unique products such as Village Farm’s easy-to-make recipes inspire consumers mini San Marzano. “Unique colors and to buy more or try new varieties,” reports high-flavor products, such as our heavenly Darroch. “There’s no substitute for a Villagio Marzano, can draw consumers successful in-store trial. During in-store to the tomato display and create some- sampling of a freshly prepared recipe, thing exciting for them,” says Kling. pb
96 / APRIL 2016 / PRODUCE BUSINESS
Tomatoes.indd 5 3/24/16 12:28 PM PRODUCE BUSINESS / APRIL 2016 / 97 merchandising review sweet onions Hitting e Sweet Spot
Proper merchandising keeps sweet onions selling year-round.
BY LISA WHITE
weet onions have been marketed in the United States for more than a 100 years but have only recently become a year-round product in supermarket produce departments. is is because, over the past several years, demand for sweet onions has been steadily Sincreasing, fueled by increased consumer awareness and the growing popularity of these products. For a period of time, the available supply of authentic sweet onions was lagging behind the demand. However, with more consumers seeking sweet onions from both coasts, additional varieties have been developed or Sweet onions have become a staple in many ability and consumer demand continue to drive imported to meet this need. consumers’ kitchens due to a mild, sweet avor these trends, and retailers can capitalize by “Onions are one of the most consumed and versatility in a variety of dishes. keeping sweet onions on their shelves all year.” produce items in the world,” says Marty Kamer, “Growing steadily over the last decade, e latest research shows sweet onions vice president of Keystone Fruit Marketing, sweet onion sales have either been tied with continue to be the onion category leader, Keystone, PA. “Average annual per capita onion or have overtaken yellow cooking onion sales,” making up the largest share of total onion consumption in the United States is 21 pounds, says John Shuman, president of Shuman dollar sales. a tremendous opportunity for consistent sales.” Produce, Reidsville, GA. “Year-round avail- “So, while consumers do continue to
98 / APRIL 2016 / PRODUCE BUSINESS V INSPIRED! WITH THE PREMIUM SWEET FLAVOR OF VIDALIA ONIONS
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Vidalia Onions.indd 1 3/22/16 10:04 AM merchandising review sweet onions
consumers in and raises the ring at the register. “We suggest placing sweet onions in the center of the produce department for maximum eect,” says Shuman. “For example, a display including sweet onions, bagged salad, tomatoes and refrigerated dressings could be used to create a avorful salad promotion.” Spring and the grilling season are prime times to promote sweet onions. “Pulling grilling items into the produce department, whether it’s aluminum foil, spat- ulas or fresh herbs, can bring added attention to a display,” says Kim Reddin, director of public and industry relations for the Greeley, CO-based National Onion Association. Educating shoppers about the varieties and attributes is key. Helping the consumer identify sweet onions, whether they are from the Vidalia region, California, Peru, Texas, etc., is important in order “We do a lot of Sweet onions also to distinguish this sell well all year at type from conven- merchandising and Tadych’s Econo Foods, tional yellows and a Brillion, WI-based to further identify cross-merchandising supermarket chain with the origin. with recipes and onion three Wisconsin and three “Research shows Michigan locations. 67 percent of shoppers ring mix. We also display “We have our sta at all stores look at packaging, pricing in end caps and put educate customers on other sweet or signage to identify the type of onions apart from Vidalias,” says Jim Weber, onion being purchased, so it’s key these are onions up front to produce supervisor. “Like anything else, sales labeled as sweet to best capitalize on sales,” increase visibility.” depend on growing conditions and availability, says Smith. and the demographic is all across the board.” Research also shows merchandising onions — Ted Romero, G&G Supermarkets e store displays all onions in one area near other specic produce items generate a and cross-merchandises sweet onions with greater likelihood for sales. condiments and barbecue sauces. “For instance, consumers who purchase purchase conventional onions, 81 percent of “When these products are on ad, we’ll put sweet onions are 5.6 times more likely to consumers say they like their onions mild and together a full end cap display,” says Weber. purchases peppers, 4.8 times more likely to sweet,” says Greg Smith, marketing commu- Sweet onions present an opportunity for purchase mushrooms, and 4 times more likely nications manager of Bland Farms, Cato, NY. incremental produce sales particularly when to buy carrots on the same trip,” says Smith. “If we drill further down into the sweet onion the health and avor benets are highlighted. Research from Shuman Produce and category segment, Vidalia sweet onions repre- For example, the onion’s sweet and mild Nielsen Perishables Group shows sweet sent 62 percent of sweet onion sales.” avor is a good t for a burger or salad topping onions drive sales of a variety of other items. as well as part of a shish kebab or atop steak. Consumers with sweet onions in their carts EFFECTIVE MERCHANDISING “Sweet onions are most often used to are more likely to purchase celery, tomatoes e popularity of this category is no surprise enhance avors in a wide range of recipes, and bagged salad as well as fresh meats, such to G&G Supermarkets’ two locations in Santa including salads, soups, stews and casseroles,” as beef and chicken. Rosa and Petaluma, CA, which carry sweet says Kamer. “ese onions also are used as a Bland Farms’ sweet onions are often onions year-round. garnish in sandwiches, wraps and in classic successfully cross-merchandised amongst “Currently, we’re offering a 2-pound Mexican or Italian cuisine. Approximately 15 the company’s sweet potatoes and Vidalia Peruvian sweet onion, but during the season, to 18 percent of onions are processed for use brand snacks. During the holiday months, the Vidalias are very popular,” says Ted Romero, in prepared food items, such as salsa, soups company oers a split full-sized high graphic produce manager. “We do a lot of merchan- and appetizers.” bin lled on one side with sweet potatoes and dising and cross-merchandising with recipes Merchandising sweet onions alongside the other side with sweet onions. and onion ring mix. We also display in end caps additional products that can be combined Retailers also will cluster locally-grown and put onions up front to increase visibility.” to produce an easy meal solution draws sweet onions for higher exposure.
100 / APRIL 2016 / PRODUCE BUSINESS Shuman Produce.indd 1 3/17/16 11:18 AM merchandising review sweet onions PHOTO COURTESY OF KEYSTONE
“Expanded footage, secondary displays and have been overlaps. of course, cross-merchandising are very eec- “We start with the Northwest Sweets from tive,” says Barry Rogers, president of the Sweet Idaho, then move into the 10/15s, followed by Onion Trading Co., based in Melbourne, FL. the Vidalias, and lastly the Walla Wallas,” says Weber. “e Vidalias are the most popular, with CAPITALIZING ON TRENDS imports and domestic sweet onions selling at Although Tadych’s Econo Foods typically about the same rate.” carries one type of sweet onion at a time, there With the recent focus on local produce,
102 / APRIL 2016 / PRODUCE BUSINESS PHOTO COURTESY OF KEYSTONE
Keystone Fruit holds in-store demonstrations with a chef, and shoppers are selected to participate. This activity introduces new recipes that emphasize quality, flavor, nutrition and the food safety differences of authentic sweet onions versus regular cooking onions.
some companies are seeing a shift toward on the shelf, I think the consumer would buy domestic sweet onions. the imported product if that is all that was “Endcaps, stand-alones, “If a consumer had a choice between available.” domestic or imported, they would choose In terms of onion types, many consumers value-added product domestic,” says Jessica Peri, retail sales manager mix and match. While whites or yellows are oerings, multi-size at Peri & Sons Farms, Yerington, NV. “If most often used for cooking, reds are relegated they aren’t given a direct choice with both to salads and sandwiches. strategies and consum- er bagged displays oer SWEET ONION TUTORIAL consumers multiple To properly market and merchan- months in the U.S., and is a strong seller.” dise sweet onions, it helps to be Onions also are distinguished by buying options and familiar with the traits and types. use. While the sweet type is used Onions are sweet due to the lack for cooking and as a topping or raw ensure sales lift.” and dilution of sulfur. Traditional onions ingredient, the pungent variety is — Marty Kamer, Keystone Fruit are the long day type, since these more likely to be a recipe component. are planted in spring, growing when “Chefs would rather cook with long day the days are longer in summer, and onions, because this type has more soluble harvested in fall. Sweet onions are short solids and less water, so the cooking time “Real onion lovers know white onions are day, since these are planted in October is reduced.” says Kelso. “Sweet onions the best for cooking, because they have the or November. Those planted before are more common in salads, on burgers highest sugar content and do not leave a bitter October 15 are referred to as 10/15s. and with dishes as a feature flavor.” taste in their cooked meals,” says Peri. Sweet onions contain more water Onions Etc. has seen impressive sales Peri & Sons oers a combo pack with red, than other varieties and, for this of Peruvian sweet onions by retailers who white and yellow onions in hopes of having reason, have a shorter shelf life. This put the product front and center with consumers try an onion they may not have type also is named after the growing promotions to highlight the attributes. The picked up in the past. areas, such as Vidalia from Georgia, sweeter the onion, the higher the sales. Sweet onion sales are largely dependent on Walla Walla from Washington and Peru. “Onions can be used in more than the season, as domestic product can only be Onions Etc., a sweet onion shipper 90 percent of recipes, so there are harvested in spring and early summer. ere and repacker, is a division of Farmington many opportunities to cross-merchan- have been issues in the past where regular Fresh based in Granite Bay, CA. The dise these products,” says Kelso. “Also, onions have been mislabeled or passed o company supplies product to more than retailers can bag this product and include as sweet onions, which is misleading to 2,500 retail stores, primarily on the West recipes to grow incremental sales.” consumers. Coast. “Vidalia sweet onions sell great Consumer knowledge is key to “One of the biggest problems with sweet on the East Coast, but aren’t as popular increased sales. Onions Etc., is working onions is when stores put stickers on regular on the West Coast,” says Derrell Kelso, Jr., with retailers to implement smart onions designating sweet to make more money, president of Onions Etc. “The imported phone apps with usage informa - which kills the category,” says Brian Kastick, variety is available during the winter tion to better educate customers. pb president at Savannah, GA-based Saven Corp., supplier of OSO Sweet Onions. “Stores enjoy
PRODUCE BUSINESS / APRIL 2016 / 103 merchandising review sweet onions higher gross sales when they sell true sweet “Endcaps, stand-alones, value-added onions. By providing insight on the onions’ onions and have distinct programs that accen- product o erings, multi-size strategies and attributes and also details on the origin, tuate the di erences.” consumer bagged displays o er consumers retailers are ensuring consumers won’t be Due to this increased demand of sweet multiple buying options and ensure sales lift,” disappointed with their purchase. onions, many retailers have found it advan- says Kamer at Keystone Fruit. “Consumers are putting onions in their tageous to carry bulk or loose jumbo sweet Also, signage is an e ective medium to baskets if they’re cooking at home,” says the onions as well as consumer bags of medium educate consumers on the di erences in avors, National Onion Association’s Reddin. “is sweet onions. textures and uses of sweet, yellow and red is one of the most purchased items.” pb
GETTING THE WORD OUT Keeping sweet onions front and center which helps set them apart.” bags, bins and boxes that work to comple- year-round with innovative marketing and Sweet onions are an ideal promo- ment each other and feature the product displays is effective in growing sales at tion item for inclusion in a wide range with bright and colorful imagery to draw the store level. of recipes, so providing information on consumers’ eyes and attention,” says John Brillion, WI-based Tadych’s Econo Foods usage ideas is key. Shuman, president of Shuman Produce, runs sweet onions on ad starting in early “Thirty percent of consumers say they Reidsville, GA. spring, including Vidalias when this variety would buy and eat more fruits and vegeta- The company also provides retailers is in season. “We have Vidalia promotions bles if they know how to use them,” says with point-of-sale materials for in-store every three weeks until the season ends,” Marty Kamer, vice president of Keystone displays featuring photos of its fields and says Jim Weber, produce supervisor. Fruit Marketing, Keystone, PA. facts about the health benefits. Because sweet onion availability Fortunately, today’s packaging “Shoppers are looking for informa- depends on the season, this segment includes usage tips, recipes and nutrition tion on the web prior to and during their is especially impacted by promotional details. Growers, shippers and retailers shopping trips, and we provide a virtual programs that educate consumers. continuously strive to develop packaging tour of our fields with a slideshow of our For example, unlike Vidalia onions that and displays to catch the eye of the growing and harvesting processes as well can be kept in cold storage for months at consumer, at the same time providing as video content introducing consumers to a time, Walla Walla sweet onions have a information on nutrition and utilizing point our farms, farmers and the story behind short shelf life. In Wisconsin, the Walla of purchase products to boost sales. Shuman Produce,” says Shuman. “All of this Walla-type onions are planted in April and Also, food TV, celebrity chefs, cooking information can be found on our mobile- are harvested beginning in July. They’re shows and all forms of media have brought friendly website as well as through our usually on the market until fall, and smaller added awareness to fresh fruits and social media channels.” than those grown in Washington. In Walla vegetables. Onions are a big part of this With targeted consumers, mainly Walla, the season is June-August. awareness as a staple ingredient, which Millennials, influenced by TV, Pinterest and These delicate onions are 95 percent naturally resonates through to increased other social media, signage is important water with a very mild flavor and low consumption and higher sales numbers to provide links and information to boost pyruvic acid, which determines the amount at the store. the category. of sweetness. Effective point-of-purchase materials “When consumers understand the “We have a niche market, and there’s and signage helps showcase the nutri- seasonality aspect of sweet onions, even if such a small window of opportunity for tional benefits and flavor of sweet onions it’s just a simple chart saying what onions these products, the onions should be to consumers. are available when and from where, it the focus during the season,” says Kathy Keystone Fruit holds in-store demos enhances the display’s impact,” says Kim Fry-Trommald, executive director of Walla with a chef, where shoppers are selected Reddin, director of public and industry Walla Sweet Onion Marketing, based in to participate. This introduces new recipes relations for the Greeley, CO-based Walla Walla, WA. that emphasize quality, flavor, nutri- National Onion Association. The organization offers point of tion and the food safety differences of Because each season is different in purchase materials, including recipe card authentic sweet onions versus regular terms of sweet onion availability, there packets, onion posters that are frameable, cooking onions. is more potential for creative ads and and signage. Shuman Produce works with Chef and displays with this product category. “Retailers should build a display at the The Fat Man (Kevin Jenkins and Erik Holdo “Retailers can change the feel of the department’s entrance, stacking 40-pound who are Atlanta radio personalities and display by including the story, history or boxes and including attractive signage, culinary celebrities) on a regular basis to photos of the growers to better connect which will help move these items,” says present consumers with recipes, tips and consumers with sweet onions,” says Fry-Trommald. “It’s critical to push these videos featuring sweet onions. Brian Kastick, president at Savannah, onions during the season and emphasize “As our retail partners know, displays GA-based Saven Corp., supplier of OSO that these are a limited time offer product, drive sales, and that’s why we provide Sweet Onions. pb
104 / APRIL 2016 / PRODUCE BUSINESS PRODUCE BUSINESS / APRIL 2016 / 105 merchandising review melons Melon Merchandising For Year-Round Appeal
PHOTO COURTESY OF THE NATIONAL WATERMELON PROMOTION BOARD
Thanks to the increasing Tennessee. “Over the last few years, the quality Cantaloupe and honeydew follow a similar quality grown overseas, of the import melons improved so much in timeframe for growing. “ e U.S. season really this fruit offers flavorful appearance and taste that the consumer didn’t is from about May to November,” says Garrett options for consumers. even notice. With the year-round availability Patricio, vice president of Westside Produce on most produce now, it is virtually seamless in Firebaugh, CA, a grower/packer/shipper BY SOPHIA MCDONALD to the consumers when we need to change of cantaloupes and honeydews sold under product procurement locations.” the brand name TRI. “Historically, the main shipping season is July through September, but MORE THAN CANTALOUPE: excellent quality domestic melons are grown elon sales may peak be- OLD AND NEW VARIETIES in warmer, desert climates in early spring and tween the Memorial e two best-selling melons are seedless late fall.” Day and Labor Day hol- watermelons and cantaloupes. According California grows about 75 percent of the idays, but grocery stores to the Orlando, FL-based National Water- cantaloupes produced in the U.S., according to don’t have to wait until melon Promotion Board (NWPB), the the Dinuba, CA-based California Cantaloupe the sun is shining to market this fruit cate- domestic watermelon seasons run from May Advisory Board. Arizona, Texas and Georgia gory. Customers will purchase melons from to September. e U.S. Department of Agri- are other top producers. From December to MJanuary to December. culture reports Florida is the country’s No. 1 April, American stores rely on melons from “We don’t market melons in the o-season producer, followed closely by Georgia, Cali- farms in Mexico and South America. much different than we do during the fornia and Texas. Seeded, seedless, mini and Consumers are increasingly looking for new domestic deal,” says Keith Cox, produce cate- personal watermelon are the most common and interesting foods in the produce depart- gory manager with K-VA-T Food Stores in varieties. Watermelons from Mexico, Guate- ment. ere are now several types of melons Abingdon, VA. e company operates under mala and Honduras are available when the available beyond watermelon, cantaloupe and the Food City name in Kentucky, Virginia and fruit isn’t growing in the U.S. honeydew. Milas Russell III, president of Savor
106 / APRIL 2016 / PRODUCE BUSINESS TOP LEFT PHOTO COURTESY OF THE NATIONAL WATERMELON PROMOTION BOARD
Cantaloupe and honeydew follow a similar Fresh Farms, a grower/packer/shipper in Yuma, “We have some great local growers with process them into stew. e question is, is this timeframe for growing. “ e U.S. season really AZ, describes the four specialty melons his fantastic varieties that come on closer to July,” melon good now?” is from about May to November,” says Garrett company markets under the Kiss label. eir says Maroka Kawamura, produce director for e most eective way to convince shop- Patricio, vice president of Westside Produce most popular melon is the Sugar Kiss. “It melts New Leaf Community Markets, which is pers the melons are ripe and sweet is to let in Firebaugh, CA, a grower/packer/shipper in your mouth, and it literally tastes like sugar,” headquartered in Santa Cruz, CA, and has them taste them. “Sampling really works best of cantaloupes and honeydews sold under he says. Tests have shown that the melons have seven locations in the northern part of the for selling,” says Kawamura. “We made some the brand name TRI. “Historically, the main double or even triple the typical sugar levels. state. e retailer has success with more obscure guides that outline how to select melons and shipping season is July through September, but e Honey Kiss melon is oblong, with crisp melon varieties such as Piel de Sapo (also their avor proles, but the most successful excellent quality domestic melons are grown meat and a distinctive honey aftertaste. “ e known as a Santa Claus or Christmas melon), thing is just having someone available to talk in warmer, desert climates in early spring and Golden Kiss melon is a French Charentais Sharlyn (which looks like an elongated canta- to customers directly.” late fall.” melon,” says Russell. “It almost looks like a loupe) and orange honeydew. Johnny Shepherd, sales and operations California grows about 75 percent of the basketball. It’s dark orange and very dense.” manager with Borders Melon Company, a cantaloupes produced in the U.S., according to Savor Fresh Farms’ answer to honeydew TASTE SAMPLING family-run watermelon grower in Edinburg, the Dinuba, CA-based California Cantaloupe is the Summer Kiss, a green-eshed melon. “Our most recent consumer research study TX, says he can’t emphasize enough how Advisory Board. Arizona, Texas and Georgia Russell describes it as “mellow and sweet. showed taste was one of the top reasons those important sampling is. Even setting out a plate are other top producers. From December to It’s a very good summer melon that’s very surveyed purchase watermelon,” says Juliemar with melon slices or cubes can make a big April, American stores rely on melons from refreshing.” e growing season for these Rosado, director of retail operations and inter- dierence. e bright-colored fruit will attract farms in Mexico and South America. melons run from mid-May to mid-November. national marketing for the NWPB. Stores adults and kids, and the latter can be quite Consumers are increasingly looking for new Russell points out that many regions around interested in selling more melons of all types persuasive. “A kid will talk Mom into getting and interesting foods in the produce depart- the country have their own specialty melons. must focus on letting consumers know how what they want,” says Shepherd. ey may also ment. ere are now several types of melons He says watermelons grown in Hermiston are good their products taste. be able to talk Mom into buying melons over available beyond watermelon, cantaloupe and quite popular in Oregon, and ‘Athena’ canta- “Fruit is a qualitative impulse purchase,” and over, and that repeat business is critical. honeydew. Milas Russell III, president of Savor loupes are prized on the East Coast. says Russell. “ ey’re not onions. You don’t Cutting open a melon and setting it on the
PRODUCE BUSINESS / APRIL 2016 / 107 merchandising review melons display will give people a better idea of what they can expect, because they can see the esh, says Patricio with Westside Produce. at can be a good way to increase sales if consumers are feeling shy after having a few bad melon experiences. If consumers have questions about how to pick a ripe watermelon, Rosado recommends three easy steps. “I like to say look, lift, turn,” she says. “First, look at the watermelon, and make sure it’s symmetrical and free of any major dents, gashes or bruising. Second, lift it up. A watermelon should be fairly heavy for its size. Last, turn it over and look for a creamy yellow spot. at’s often referred to as the ground spot to show where it sat on the ground and ripened in the sun.” e California Cantaloupe Advisory Board also advises three steps to identify a delicious cantaloupe. e melon should have prominent, cream-colored wrinkles all over the exterior. e stem end should be smooth and well- rounded. A ripe cantaloupe will have a sweet, “First, look at the watermelon, and make sure it’s musky aroma if you smell the stem opening. Tapping will not communicate much about symmetrical and free of any major dents, gashes or the fruit’s ripeness. Consumers should not bruising. Second, lift it up. A watermelon should be be scared o if one side of the cantaloupe is slightly atter or paler than the other; it’s the fairly heavy for its size. Last, turn it over and look side that sat on the ground. for a creamy yellow spot.” WHOLE, CUT OR VALUEADDED? — Juliemar Rosado, National Watermelon Promotion Board Selling cut melons is a great way to attract consumers who are scared o by a whole water- melon, says Shepherd. “You have the ‘picnicker’ no cost. is year they’re oering free retail those summer months because from a pure who will take the whole melon. But then you kits chock full of watermelon information, fruit perspective, the best quality melons are have the elderly customer who won’t eat a nutrition facts, and merchandising tips and grown during the summer months.” lot and doesn’t want the waste. You have the ideas. e California Cantaloupe Advisory During the non-peak times for melon couple with no children that wants to eat it Board has recipes and resources available on sales, remind customers how good they are over a few nights.” its website as well. with recipe suggestions, nutrition information, Cox with K-VA-T Food Stores says they melon facts and reminders of how much they sell melons whole, halved and quartered. “For MELON MERCHANDISING ADVICE love summer fruit. those on the go, ready-to-eat melon cups and Having an appropriate price point is Melons tend to sell best when displayed bowls are very popular,” he says. “We’ve had important in merchandising melons. Melons by themselves. Good-quality displays will good success with melon cups and bowls pack- are generally considered a bulk commodity attract consumers’ attention and help increase aged in 24-ounce and up containers displayed and will sell better at a lower retail price, says melon sales. in a vertical set with several varieties.” Patricio. “When people put a high retail price “Displaying all whole melons together Kawamura says New Leaf Community on a melon, they tend to not sell very well. At in four to six dummied-up bin displays Markets also sell whole and cut melons. “Cut 79 cents to $1.29, they seem to move well.” makes a melon destination center,” says Cox. melons are really impulse items,” he says. “ey “In summer, when you have the whole “Customers looking for a cantaloupe may pick need to be eaten more quickly than their whole melon at $4.99 or $5.99, they move o the up a honeydew as an impulse buy. During the counterparts, so we try and merchandise them shelf real well,” says Shepherd. ey won’t sell spring and summer months, displaying whole front-and-center.” nearly as well when priced over $8.99. melons on the sidewalk or lobby also creates “If a customer thinks the watermelon is too Melons typically sell best during the season impulse buys. big, encourage them to use the whole water- when people are accustomed to eating them, “We display whole seedless watermelon melon by featuring recipes that showcase its so increase displays during that time. “Canta- the same in January as we do in July,” he versatility and potential to be eaten at every loupes are one of those items that are typically adds. “e dierence is we will only display meal of the day,” says Rosado. e NWPB cut and used during the summer months just one bin versus several bins. We also will makes point-of-sale materials such as recipe because historically they always were a summer have a secondary display on cantaloupe as cards and brochures available for retailers at crop,” says Patricio. “ey usually do better in well.” pb
108 / APRIL 2016 / PRODUCE BUSINESS asparagus merchandising review Asparagus Transcends Seasonality
Seasonality shouldn’t Unfortunately, smaller supermarkets are increase sales during non-peak times. ese deter creative marketing not yet taking advantage of this vegetable’s strategies include cross merchandising, educa- and merchandising tactics. year-round potential. For example, Priceville tional point of sale materials that promote Foodland, an independent retailer in Decatur, asparagus’ health benets as well as large and AL, does not focus on asparagus merchan- creative displays. BY LISA WHITE dising, even during its peak months. Anticipating when a consumer will e same is true for Tom’s Foodland, a purchase, combined with product availability, sparagus has transcended its single-store operation in Freeburg, IL. Its is the key to a successful product ow strategy seasonal reputation to be- asparagus is located in the cooking vegetable both during promoted and non-promoted come a year-long presence in section, with the stalks in a pan of water and time frames. the produce department. dips cross merchandised nearby. “With an item like asparagus, retailers tend Publix Super Markets’ “Prices during the o season are really high, to promote in bigger displays with larger quan- 1,114 stores have taken advantage of the added and it’s hit or miss with supply,” says Ken tities in order to create excitement,” says Joe opportunities in the burgeoning asparagus Carol, the store’s manager. “We don’t do a lot of Dugo, category manager at Robinson Fresh, segment.A e stores carry traditional green asparagus marketing, even during the spring.” based in Eden Prairie, MN. “It’s important to asparagus as well as white and purple varieties, is points to the fact some retailers may oer asparagus in bulk and bagged packaging supporting sales through weekly ads and with be missing opportunities to drive sales with as well as display-ready boxes in multiple value recipes. innovative merchandising strategies, marketing pack sizes in order to meet various price points “We oer recipes for asparagus through tactics and pairings with these products. at retail locations.” Aprons Simple Meals, our in-store demon- is is a burgeoning category. In 2014, the In its Regional Retail Opinion Market stration meal program where we prepare and U.S. imported more than 486 million pounds Study, the Peruvian Asparagus Importers sample the meal for customers,” says Maria of fresh-market asparagus of which Peruvian Association (PAIA) includes a number of Brous, director of media and community rela- asparagus represented more than 42 percent promotion and advertising tips for retailers. tions for the Lakeland, FL-based chain. of the total world supply, according to the U.S. e report states that point-of-sale mate- Recipe cards are available, and all items Department of Commerce. rial is valuable for educating consumers on to recreate the meal at home are located in recipes, usage and the nutritional benets of an adjacent kiosk. e recipes also are found MERCHANDISING STRATEGIES asparagus. To enhance visibility, asparagus can online. “In addition, we oer secondary displays Although asparagus is promoted most be displayed with other produce commodities, for asparagus and other produce fruits and frequently in the months of February through such as lemons, grapes or strawberries. vegetables on tables that are iced and have a April, and again in October and November, Incentive programs, including coupon ltration system,” says Brous. there is a variety of promotional tactics to development and in-store demos have proven
PRODUCE BUSINESS / APRIL 2016 / 109 merchandising review asparagus not only to increase consumer awareness of go a long way. in that not only do they have the ability to this product, but also every day purchases, “With asparagus, you may have tuna steak, merchandise green asparagus, but it’s possible according to the PAIA. red meat or chicken breast in the meat section to create displays with white and purple In addition, cross merchandising can posi- that will go with asparagus and béarnaise sauce varieties to create more of a destination for tively aect higher performance and yield of with garlic roasted potatoes,” says Friedman. consumers. asparagus, reports the association. Pairing “As vendors and retailers become more “e contrast in colors creates a lot of suggestions include salads, oils, dressings, deli educated, the consumers get more informed interest for the consumer and oers them meats and cheeses and wine. and people pay attention.” variety within the asparagus category,” says “Retailers use POS materials, whether it’s Innovative packaging also has given this Charlie Eagle, vice president of business devel- in-store baseball card-size information that vegetable a boost. Los Angeles-based Gourmet opment for Southern Specialties Inc., located tells about the vegetable or its nutritional Trading Co. is involved with asparagus bagging in Pompano Beach, FL. value,” says Je Friedman, president of Carb in 8-, 10- and 12-ounce sizes as well as 1- and In addition to higher end varieties, the Americas, based in Fort Lauderdale, FL. “End 2-pound bags and oers private label programs company oers Southern Selects, a value- cap promotions also are eective.” as well as bi- and tri-color packs mixing green, added asparagus. is includes 8-ounce micro- Recipe cards are not as common, although white and purple asparagus. wavable asparagus tips, asparagus tenders in some upscale stores utilize these to encourage “In terms of the 1-pound bunches, everyone a steam pouch and larger club store format increased sales. has access,” says Jan McDaniels, who handles packs up to 2 pounds. Peter A. Warren, import director at Gourmet Trading’s sales. “Given the weather Packaging provides nutritional information Pompano Beach, FL-based Ayco Farms, was issues and complications with imports, the only and preparation tips, while also extending the instrumental in the rst box of fresh green way to dierentiate this product is by price.” vegetable’s shelf life. asparagus that came from Peru more than e company oers point-of-sale recipe “We have recipes available on our website, 30 years ago. Today, Peru exports 20 million cards, along with cross-merchandising sugges- rather than recipe cards,” says Eagle. cases to the U.S. annually. e company has a tions that are still evolving and include steak, e company encourages retailers to incor- designated cooling facility built for Peruvian mushrooms, sauces and seasonings. porate asparagus in foodservice programs. One asparagus, where the vegetable is precooled Asparagus can be dicult to cross merchan- store oered a deli special that included white and hydrated in less than an hour. dise, given the need for refrigeration, but it also and green asparagus varieties. “People are afraid to cook asparagus, and can be paired with garlic, limes and olive oil “It is a good way to oer something new, don’t understand that it can be microwaved, that are in a separate nearby display. because this allows customers to try both types boiled, steamed, fried, sautéed, baked, grilled “Typically, asparagus is in a prominent of asparagus without having to buy substan- or eaten raw,” says Warren. “is ease of prepa- spot,” says Bruce Klein, Maurice Auerbach’s tial amounts,” says Eagle, who recommends ration, along with its health bene ts, is what director of marketing. “Even though white cross-merchandising with Parmesan cheese, will get new buyers to try asparagus.” asparagus is not as strong a seller, many retailers prosciutto or any grilling item. Rather than recipe cards, demos are most will mix it with the green to break up the color.” eective with this vegetable. In addition, it’s e company oers asparagus year-round, PROPER DISPLAYS important to keep in mind that eective following the growing areas of Peru in winter, As with marketing and merchandising, merchandising also is about perception. Mexico in spring, followed by California and displays are an important component to Consequently, cross department merchan- Washington in summer. bringing added visibility to asparagus in dising with the meat and deli departments can Experts say retailers are fortunate now produce departments.With asparagus, less is more on the shelf, especially if the store is not able to tend to the display or rotate the DISPLAY IDEAS FROM PAIA’S REGIONAL selection properly. RETAIL OPINION MARKET STUDY “Asparagus bunches tend to get knocked as customers evaluate the ones to pick, which • Strategically displaying the cate- to green and/or purple offers means the display needs to be closely moni- gory during peak and non-peak consumers with more choices tored to avoid product loss,” says Robinson holidays will ensure consumers and presents a contrasting, Fresh’s Dugo. see it and increase sales. attractive and vibrant displays. The PAIA recommends strategically • Use stand-alone displays, pyramid • Highlighting nutritional benefits of displaying the category during peak and and table displays as well as fresh asparagus will attract a wide non-peak holidays, since well-positioned doubling displays when on ad. variety of customers by providing product will ensure increased visibility and • Display different product forms, for brochures and signage as to the sales. is could include standalone, pyramid example: multiple SKU’s, sizes and health benefits of fresh asparagus. and table displays as well as doubling space colors (green, white and purple) • Provide usage suggestions, recipe when asparagus is on ad. of fresh Peruvian asparagus to cards and handling/storage educa- Including a variety of sizes, colors and increase consumer purchase pene- tional tools for the consumers. packaging as well as dierent product forms, tration and frequency of purchase. • Refrigerate and hydrate to maintain such as multiple SKUs sizes and colors, also • Displaying white asparagus next quality and longevity of shelf life. pb is eective. Merchandising Strategies Source: PAIA Regional Retail Opinion Market Study Highlighting nutritional bene ts of fresh asparagus on brochures, signage and/or
110 / APRIL 2016 / PRODUCE BUSINESS “ey wonder if there will be a limited supply, whether air freight is going up or whether growers will back the ads.” Because it’s really cost basis that dictates if stores are moving volume or not, most retailers now understand marketing asparagus and promoting it is more seasonal than it is year round because of price uctuations. While anksgiving is a good time to promote this vegetable, Christmas time is not. During February and early March, Mexico will be oering 28-pound boxes instead of 11. It packaging will also attract a wider variety of “ere’s typically more cost issues with behooves retailers to follow asparagus growing customers. white and purple asparagus, since these types patterns and regions, which will help determine “[In terms of displays,] we need to think are more expensive than green on a per pound when to promote this product. outside the box, since the current rules are not basis,” says McDaniels of Gourmet Trading. “With asparagus, it’s denitely dicult working,” says Warren. “is product needs “ese varieties can be between 20 and 25 to deal with year-round merchandising,” says to be kept cold and wet for optimum quality percent more in cost.” McDaniels. “e price dierence is huge and shelf life.” As a result of its seasonality, asparagus between domestic and imported product, and Proper care and handling is essential in is considered a luxury item for many in the transportation and fumigation with imports terms of asparagus shelf life. It’s typical for winter, when it is mainly being imported from raises prices.” retailers to stand bunches in icy water if the Mexico. As a result, no retailers can aord to operate product is not bagged, which is eective. By emphasizing pricing during peak season, on one price for 12 months, so some operate “e advantage of bagged product is it adds like promotions of $2.29 or less, stores will on monthly and two- to three-month pricing. an extra 10 days of shelf life,” says Gourmet move more product. Even though a year-round approach can be Trading’s McDaniels. “Asparagus consumption is high, but it dicult to accomplish, retailers can get creative While some of Maurice Auerbach’s retail uctuates so much in price that the majority of despite the seasonal price uctuations to keep accounts put asparagus on ice in the middle of the year the retailer is confused,” says Friedman. asparagus in the spotlight 12 months a year. pb an aisle, others will include it in a large display with water to hydrate the product. e company recommends this vegetable be held between 36 and 37 degrees F. Stems in this atmosphere don’t need to be kept wet. “In fact, this could cause mold in some instances,” says Klein of Maurice Auerbach. Southern Specialties Inc. emphasizes that asparagus be merchandised vertically, not horizontally. “In some stores, we’ve seen it laying side- ways, but to best maintain the product’s integ- rity and for proper hydration, it should be standing straight up,” says Eagle of Southern Specialties. “Many retailers have island or end cap displays, which brings added attention to the product.” Robinson Fresh oers a two-piece box where the tops lift o and the bottom can be used in, or as the display. If the bottom of the box is not used as the display, it still protects the asparagus bunches from damage when being removed.
PRICING PROBLEMS One of the biggest issues with asparagus, and one that impacts sales, is seasonal pricing dierences. Ayco Farms moves a lot of product when it’s priced between $1.99 and $3.99, but once it hits the $5.99 and higher benchmark in winter, this product is a tough sell.
PRODUCE BUSINESS / APRIL 2016 / 111 foodservice profile mushrooms Making A Mushroom Boom
PHOTO COURTESY OF MELLOW MUSHROOM
North American growers team of national mushroom sales, but they were up turous in trying mushrooms, chefs and food- with chefs to expand varieties 14 percent over the previous year, according service companies have been able to grad- on menus to the USDA. Now, you would expect to see ually add more mushroom varieties to the exotic mushrooms at ne dining establish- menu,” said Katie Preis, marketing manager ments like Verge Restaurant in Los Gatos, for the Redwood Shores CA-based Mushroom BY JOHN LEHNDORFF CA, where chef Albert Nguyen-Phuoc lls Council. his mushroom cobbler with Parmesan and “Sales of Shiitake mushrooms are steadily Humboldt Fog goat cheese and Cremini, growing outside of Asian cuisines where they xperts have noted an attitude Shiitake and Oyster mushrooms. Types of are a popular ingredient. We’re seeing Shiitakes change in American consum- fungi most diners hadn’t heard of a decade ago a lot in pasta dishes and on pizza because they ers this year. ey are looking are also muscling their way onto mainstream keep their crunch,” she says. for change in 2016, and change American restaurant menus by name in dishes “Portobellos are still very popular, still used is what they will encounter, that formerly said simply “mushrooms.” And a lot as vegetarian burgers, especially where at least when it comes to mushrooms at the available choices have increased beyond foodservice is expanding vegetarian options restaurants. e establishment white variety fresh farmed including organic to encompass to meet growing demand,” she says. Eis dominant, fully 60 percent of mushroom foraged, processed pre-blanched mushrooms, Mushrooms are also graduating beyond sales in the United States in 2015, according IQF (individually quick frozen), dried mush- their longtime role as sidekicks, add-ons or to the United States Department of Agricul- rooms and powdered mushrooms. just an ingredient. ture (USDA). However, brown mushrooms “We’re seeing King Trumpet mushrooms (Portobello and Cremini) have sliced away LET’S HEAR IT FOR UMAMI cut lengthwise, grilled or roasted and served at that dominance and now represent about In the past few years most of the food- like ribs with barbecue sauce. Maitakes are 31 percent of sales. Portobellos have found service mushroom news has been about being used like pulled pork in a way because wide acceptance in dishes like the ‘Shroom blending, combining mushrooms with ground of the texture,” says Preis. Burger served by the wildly popular New or chopped protein. Blended burgers have is expansion of the mushroom varieties York-based Shake Shack chain. In the bun become hugely popular in university food- and uses has been a direct response to strong is a crisply batter-fried Portobello lled with service operations. Blending in mushrooms trends among diners, says Preis. Consumers melted Muenster and Cheddar cheeses plus with their umami characteristics gives diners have shown increasing interest in meatless, the familiar toppings. full savory avor but reduced cost, salt, calories gluten-free and healthier dining, as well as Specialty mushrooms – Shiitake, Oysters, and environmental impact. ethnic and authentic cuisines, and locally etc. — still only comprise about 2.4 percent “As consumers have become more adven- sourced and organic ingredients. e National
112 / APRIL 2016 / PRODUCE BUSINESS Restaurant Association recently named local utor of fresh, dried mushrooms. pizza and pick up a nice smoky taste,” says ingredients as the No. 1 hot culinary trend “Chefs are fully embracing a variety of Hammond. Cinnamon Cap mushrooms grow in 2016. mushrooms including substituting fried Shii- in clusters of orange caps with long stems with Mellow Mushroom, the quirky, 190-restau- take mushrooms for bacon or utilizing Porto- a nutty avor and they keep their shape when rant Atlanta-based chain, takes its namesake bello as a “crust” for a mini-veggie pizza. Sales cooked, he says. seriously even if it is not in every dish. e of sliced and whole Shiitake mushrooms are Hazel Dell Mushrooms are sold primarily company reports that it uses more than increasing. A real up-and-comer is the Royal in the Rocky Mountain region to grocers, 875,000 pounds of mushrooms per year on Trumpet mushroom,” says Litvin, adding that individual restaurants, as well as caterers and pizzas and in soups and other dishes. chefs need to ¡nd ways to educate diners about foodservice. e company’s most popular new “Mushrooms are very important to mushroom varieties to expand their palates. mushroom in foodservice is the Royal Trumpet. Mellow. We use a variety of fresh mush- e artisan pizza movement has been “It’s thick and meaty — an inch diameter stem rooms including Portobello, Shiitake and a boon for small growers like Fort Collins, usually, and ¡ve or six inches long. It’s really Button. While they can be added to most CO-based Hazel Dell Mushrooms, according good grilled or smoked and served in barbecue anything, three of our most notable dishes to owner Jim Hammond. Hazel Dell’s certi¡ed sauce. Maitake (or Hen of the Woods) mush- are our Magic Mushroom Soup, our Stued organic mixed mushrooms, including Shiitake, rooms are popular, too. ey have a really good Portobello Mushroom and our Holy Shiitake Oyster, Lion’s Mane, Royal Trumpet, Maitake, avor,” says Hammond. pizza,” says Annica Kreider, director of brand Cinnamon Cap and Cremini, have become a “Chefs are looking for ways to distinguish development for Mellow Mushroom. Magic popular topping at the growing number of their menu using mushrooms. One of the best Mushroom Soup is a wine and herb broth wood-¡red pizzerias that turn out individual ones I’ve seen is a Chanterelle cappuccino. with Montamore cheese and grilled Shiitake, pies in less than three minutes. “You see them It’s a soup served in a coee cup with a fancy, Button and Portobello mushrooms. sauteed with a white sauce and arugula on a frothy top.”
THE GATEWAY MUSHROOM e biggest foodservice mushroom trend MUSHROOMS ON MENUS: PORTOBELLO AND BEYOND out there is blending – combining mushroom with ground or chopped proteins, but a quieter Olive Garden Applebee’s Neighborhood Bar & Grill incremental change has taken place over the Ravioli di Portobello All-In Mushroom & Swiss Burger past decade. “We’re seeing our bigger food- Portobello-filled ravioli with a Portobello and Button mushrooms service customers steadily moving away from creamy, smoked cheese and sun-dried smashed into ground beef and topped turous in trying mushrooms, chefs and food- white mushrooms to brown mushrooms for tomato sauce with more mushrooms, smoky mayo service companies have been able to grad- the avor and the marketability,” said Kevin and Swiss ually add more mushroom varieties to the Delaney, vice president of sales and marketing Seasons 52 menu,” said Katie Preis, marketing manager at Avondale, PA.-based To-Jo Fresh Mush- Lump Crab, Roasted Shrimp & Outback Steakhouse for the Redwood Shores CA-based Mushroom rooms, a fourth generation family farm. Spinach Stuffed Mushrooms Victoria’s Filet Mignon Portobello Council. Brown mushrooms have turned out to be Portobello roasted with shrimp, Steak topped with seasoned butter, “Sales of Shiitake mushrooms are steadily the gateway mushroom that led diners to more lump crab and fresh spinach filling and Portobello and Parmesan growing outside of Asian cuisines where they adventurous tastes. “Consumers have grown Parmesan-panko topping are a popular ingredient. We’re seeing Shiitakes from White to Brown mushrooms and then McDonald’s a lot in pasta dishes and on pizza because they they try Shiitakes, then an Oyster, Enoki or Clover The Steakhouse keep their crunch,” she says. Trumpet. e avors get a little more intense Blue Oyster Mushroom Sandwich Sirloin beef patty, creamy pepper- “Portobellos are still very popular, still used as they move up and the prep and cooking can Buttermilk-battered Blue Oyster corn sauce, grilled onions, grilled mush- a lot as vegetarian burgers, especially where get more complicated,” says Delaney. mushrooms with lemon-y kale, toma- rooms and white cheddar foodservice is expanding vegetarian options “It’s a big sign that consumers are open toes and tarragon-miso spread to meet growing demand,” she says. to bigger avors and want to keep enhancing Johnny Rocket’s Mushrooms are also graduating beyond their palate,” he says. Houlihan’s Restaurant And Bar Portobello Chicken Sandwich their longtime role as sidekicks, add-ons or “I’m seeing many more restaurants using Wild Mushroom & Arugula Flatbread Grilled chicken breast topped with just an ingredient. sliced Portobello on top of burgers and Portobello, Shiitake and Oyster smoked Gouda, Portobello, spring mix, “We’re seeing King Trumpet mushrooms bringing in specialty mushrooms to combine mushrooms and roasted garlic white smoked bacon, and mayonnaise on cut lengthwise, grilled or roasted and served with everything from couscous to quinoa. ere sauce with truffle vinaigrette and brioche bun like ribs with barbecue sauce. Maitakes are is also a rising demand for organic mushrooms Fontina, Provolone and Romano being used like pulled pork in a way because in foodservice, not just at chef-run restaurants,” cheeses Longhorn Steakhouse of the texture,” says Preis. he says. Primetime Burger is expansion of the mushroom varieties Chain restaurants and foodservice programs Panera Bread Half-pound burger topped with and uses has been a direct response to strong are also utilizing more mushroom varieties. Soba Noodle Bowl With Chicken shaved prime rib, sautéed onions and trends among diners, says Preis. Consumers “We are seeing increasing interest from food- Chicken breast with buckwheat mushrooms and Swiss cheese with au have shown increasing interest in meatless, service in Portobello, Shiitake, Oyster and soba noodles, spinach, napa cabbage, jus and horseradish sauce gluten-free and healthier dining, as well as Royal Trumpet mushrooms,” says Bill Litvin, roasted mushroom and onion blend, ethnic and authentic cuisines, and locally senior vice president at Blandon, PA.-based sesame seeds, cilantro in miso broth sourced and organic ingredients. e National Giorgio Fresh Company, a grower and distrib-
PRODUCE BUSINESS / APRIL 2016 / 113 foodservice profile mushrooms
FOCUS ON HEALTH larity as well, encouraging consumers to try avor. “Several wild mushroom varieties are e continuing mushroom category sales produce items as alternatives to their usual now being cultivated, it doesn’t matter to me growth in recent years has been driven largely proteins. Mushrooms happen to be one of that these ‘wild’ mushrooms are not really wild. by brown mushrooms, says Mike O’Brien, those lucky foods that take on a broth-like or ey have the avors and textures of wild national sales vice president at Watsonville, meaty avor that comes in handy in preparing mushrooms I have gathered in the Provençal CA-based Monterey Mushrooms. “It’s the healthy dishes. at umami avor is so robust, countryside – and they don’t require the metic- Baby Bella/Cremini that continues to grow it allows you to use less salt when cooking. ulous attention and cleaning that real wild and, in some areas, outsells white mushrooms,” Since mushrooms are a low-energy-density mushrooms require,” he says. he says. food you’ll get fewer calories in larger food To fungi experts, it’s just important to Mushrooms ll a lot of needs for consumers portions,” says O’Brien. be accurate. “Exotic” doesn’t mean “wild,” or increasingly focused on health. “Meatless Chefs will continue to debate whether culti- foraged from the forest. Mondays are helping mushrooms gain popu- vated or foraged mushrooms have a better “More chefs are using exotic cultivated mushrooms like Maitake, both roasted as a side and in winter braises. ey are delightful,” says Eugenia Bone, James Beard Award-nom- inated author of “Mycophilia: Revelations from the Weird World of Mushrooms” (Rodale). Bone urged chefs and restaurant companies to be careful when describing the sourcing for mush- rooms. “Chefs often call farmed exotics like Oyster, Shiitake and Lion’s Mane ‘wild mushrooms’ on their menus. ey are not,” she says. Foraged mushrooms are usually available in smaller quantities, at variable prices and they have a shorter season, all reasons chefs prize these fungi. “ e chefs like that they can oer a premium local produce item, especially, in the winter, and tell diners where it was grown. We send out a weekly availability report letting restaurants and retail know which varieties are available and what’s coming next,” says Kevin Delaney of To-Jo Fresh Mushrooms. Besides cultivating Shiitake, Oyster, Royal Trumpet, Maitake, Enoki and Beech mush- rooms, To-Jo Fresh Mushroom maintains a network of professional foragers. “We worked very hard to set up a safe system with some of the best foragers harvesting out there,” he says. Education on all levels is an absolute when dealing with foraged mushrooms and related health and food laws. “Chefs with indi- vidual restaurants are the primary market for the foraged mushrooms. We’ll go onsite at restaurants and present all the varieties and do education sessions with the sta. Because of the uncommon mushroom varieties, it really helps them to see foraged mushrooms as an option in their kitchen when we do a tasting,” says Delaney.
FROZEN, DRIED, POWDERED Restaurants are always looking to get an edge on the competition with a unique ingredient. “Chefs love to be able to use local ingredients and mushroom growers are often local or regional,” says Joseph Salvo, president of Ponderosa Mushrooms. e Port Coquitlam British Columbia-based company grows and
114 / APRIL 2016 / PRODUCE BUSINESS distributes cultivated and wild foraged fresh Nova Scotia, Saskatchewan, British Columbia mushrooms, IQF mushrooms, dried mush- “I think the next big and northern California which are processed rooms and mushroom powders. at a facility in Vancouver,” says Salvo. No matter what form the mushrooms take, thing will be Shiitake. Many of the restaurant chefs that order Salvo says chefs and foodservice operations Everybody knows about mushrooms also choose from Ponderosa’s actually have simple demands. “If you can wild-harvested foods including ddlehead provide chefs with a consistent product it Shiitakes but they still ferns, ramps, wild onions, stinging nettles and makes it very easy but the quality has to be aren’t widely huckleberries as the seasons roll along. there. Pound for pound mushrooms are one of Powdered mushrooms have also taken o , the most expensive ingredients in the kitchen. distributed and used according to Salvo. “We have a full line of at’s one reason we see the use of frozen on a lot of menus.” mushroom powders we grind that are used mushrooms increasing every year because of in a lot of soups and sauces. Some chefs are the convenience and dependability of supply,” — Joseph Salvo, Ponderosa Mushrooms rolling steaks or chicken in ground dried Black he says. Trumpet mushroom powder. It’s just a fabulous Ponderosa’s business has grown steadily avor when you saute it and it gives a nice dark as more restaurants are identifying individual and soups and side dishes. color,” he says. mushroom varieties on their menus. “e Shimeji mushrooms are still largely When it comes to commercial mushroom market ranges from small ma-and-pa Italian unknown to most diners. “Seven years ago I growing the perennial search is for the next restaurants to high end caterers. A big part couldn’t give Shimeji away. Nobody knew what variety of mushroom that will be as popular as of the business is institutional sales. We also they were. Now we move all that we grow as Portobello and Cremini, but the answer may create custom mushroom blends for chain soon as we have them,” says Salvo. Shimeji be consumers will be open to many varieties restaurants,” he says. are almost always cooked to remove a slightly including some familiar ones. “I think the next “King Oyster mushrooms seem to be bitter taste and have a rm, crunchy texture big thing will be Shiitake. Everybody knows getting popular really fast. ey are part of our and nutty avor. about Shiitakes but they still aren’t widely chef ’s mushroom mix that includes sliced or Ponderosa’s wild foraged mushrooms distributed and used on a lot of menus,” he says. chopped white, brown, Shimeji and ve other include Morel, Porcini, Chanterelle and “It has taken a long, long time to get to this mushrooms, cleaned and pan-ready,” he says. Matsutake. “We have the largest forager collec- point and there is a lot of room for growth,” e mix is used in everything from omelets tion network in the industry with foragers in he says. pb
PRODUCE BUSINESS / APRIL 2016 / 115 fresh-cut marketing packaging Value-Added Packaging: Trending In e Right Direction
The category continues to be must present the product well and stand out Dreshertown Shop n’ Bag, an upscale indepen- one of the most important among all the other products surrounding dent grocer located in Dresher, PA. “We see and innovative in the growth it,” he says. this increase for the same reason as bagged of produce sales. A study conducted by the Cleveland-based salads increased,” says Nancy Grace, produce market research rm, Freedonia Group Inc., manager. “Customers love the convenience of shows demand for fresh vegetable packaging no prep, the variety and (for some) the comfort BY JANEL LEITNER is forecast to climb 3 percent per year to $2.8 of knowing that they are not buying produce billion in 2019. Demand for fresh fruit pack- that was exposed to the general public.” ackaging has become a key aging is forecast to climb 3.7 percent per year Consumer concern over wastefulness can component in promoting to $2.5 billion in 2019, notes the study. be another motivator for fresh-cut pack- and merchandising fresh-cut Convenience, grab-and-go trends and serv- aging demand. “A lot of people focus on the produce. “Having the right ing-size are all drivers for increased packaging. convenience of fresh-cut, but it is also cost packaging in the produce e Freedonia study predicts packaging growth eective by saving on food waste,” says Grant department is critical,” says Jenny Stornetta, to “outpace that of vegetable production based Ferguson, vice president at Chantler Packaging marketing communications manager with on favorable prospects for fresh-cut, ready- Inc., in Mississauga Ontario. “For example, a PApio Inc. in Guadalupe, CA. “Among the to-eat or ready-to-cook products, which oer small-household shopper making stir fry may most important factors are how it maximizes increased consumer convenience and require prefer to buy precut ingredients as opposed to consumers’ ability to see the freshness of the more packaging than most bulk products. purchasing large quantities of each and having ingredients, provides key nutritional and Greater use of value-added packaging for a lot left over — leading to possible waste.” ingredient information, and creates optimal extended freshness, increased oerings of merchandising and display options on the single-serving packaged items and ongoing SPECIALLY DESIGNED shelf.” introductions of new fresh-cut produce prod- TO OPTIMIZE EFFICIENCY e presentation of the package is almost ucts will also drive gains as consumers look Packaging options are designed with each as important as the product in the package for healthy snack alternatives as convenient product’s specic needs in mind resulting in an according to Keith Cox, produce category as traditional snack oerings.” optimized product for retailer, consumer and manager at K-VA-T Food Stores with 132 Precut, packaged fresh vegetables have marketer. “Fresh berries have historically been units and based in Abingdon, VA. “e package become a major player in produce at George’s packed in a rigid container, but sustainability
116 / APRIL 2016 / PRODUCE BUSINESS initiatives as well as the growing snacking State Garden Inc., has been using pack- it increased our sales dramatically.” category really challenged us to think outside aging with anti-fogging technology for more Peel and re-seal technology is another the box,” explains Janis McIntosh, packaging than 20 years. “It’s a critical feature as it allows advancement State Garden adopted for its and product manager with Naturipe Farms the consumer to see our product,” says Pins. Simple Beginnings Celery Sticks. “ey are a located in Estero, FL. “In the snacking area George’s Dreshertown Shop n’ Bag reports great added-value for our consumer — making exible lms are key.” tremendous success with anti-fog technology. it easy to tightly re-seal the package multiple Mark Pins, marketing director with State “e anti-fog, polypropylene bags are a retail- times,” says Pins. Garden Inc., located in Chelsea, MA agrees er’s dream,” says Grace. “Products far outsell Advances in Steamable packaging are also that exible packaging is important. “It helps their neighbors in ordinary plastic or mesh on the rise. “e convenience of fresh-cut gets extend shelf-life and maintains product quality bags and seem to protect produce very well. We even better when you can steam these vege- and integrity,” he says. started to package our own fresh green beans tables right in the bag,” says Grace. “It’s a Flexible packaging oers a multitude of in poly-vented bags as soon as we could, and win-win for both customer and retailers.” benets for bagged salads and vegetables as noted by Apio’s products. “It can be easily adapted to a variety of ingredients to allow for the proper respiration rates and it oers exceptional operational eciencies allowing processors to maximize the speed of producing nished goods,” says Stornetta. According to Pins, laser perforations (versus hot needle) is another key advancement. “It allows for a more consistent respiration rate,” he says. “is extends shelf-life and helps maintain product quality and integrity. It also protects the bag from rips and tears.” Advancements in surface inks helped suppliers such as State Garden reduce the amount of lm they use. “New inks stand up on their own and don’t require an extra layer of lm or laminate covering,” says Pins. “is is particularly relevant in the packaging of our three SKUs of steamable/microwavable Dreshertown Shop n’ Bag, an upscale indepen- bagged spinach.” dent grocer located in Dresher, PA. “We see With some stores still managing fresh-cut this increase for the same reason as bagged in-house, the industry must up the ante to salads increased,” says Nancy Grace, produce provide successful alternatives. “Fresh-cut manager. “Customers love the convenience of packaging is key to compete with these types no prep, the variety and (for some) the comfort of retailers,” says McIntosh of Naturipe. “A of knowing that they are not buying produce fresh-cut provider would have to oer some- that was exposed to the general public.” thing very unique and cost eective that could Consumer concern over wastefulness can not be duplicated in the back room of a store.” be another motivator for fresh-cut pack- aging demand. “A lot of people focus on the APPEALING TO CONSUMERS convenience of fresh-cut, but it is also cost Packaging developments focus on benets eective by saving on food waste,” says Grant to consumers in areas of cooking convenience Ferguson, vice president at Chantler Packaging or product appearance. “Consumers generally Inc., in Mississauga Ontario. “For example, a make purchases with their eyes, so any time small-household shopper making stir fry may you can change the look of a package for the prefer to buy precut ingredients as opposed to better the consumer will notice the product as purchasing large quantities of each and having a new item even though the package contains a lot left over — leading to possible waste.” the same product,” says K-VA-T’s Cox. Anti-fog technology was a signicant SPECIALLY DESIGNED development in recent years to improve the TO OPTIMIZE EFFICIENCY appearance of fresh-cut. “Anti-fog is an invalu- Packaging options are designed with each able way to improve the clarity of produce product’s specic needs in mind resulting in an packaging, allowing consumers to fully see if optimized product for retailer, consumer and the product inside is fresh,” says Stornetta of marketer. “Fresh berries have historically been Apio. “We will continue to see more produce packed in a rigid container, but sustainability suppliers using this application.”
PRODUCE BUSINESS / APRIL 2016 / 117 fresh-cut marketing packaging
For K-VA-T stores, steamable packaging and Steam line rst launched in 2012 with is an exclusive convenience attribute to the has become a steady staple. “Steamable pack- whole and multiple cuts of Brussels sprouts,” produce department,” says McClean. “Some ages grew at a fast rate when they rst hit the says Diana McClean director of marketing. people are intimidated by preparing and even market,” explains Cox. “ey now leveled o “It expanded to Kalettes in 2015 and now eating artichokes. is package takes all the with a good steady pace, and we feel these includes artichokes.” intimidation out of the process, so home cooks packages denitely have a place in the produce Ocean Mist’s Season and Steam fresh vege- can easily make perfectly cooked artichokes in department.” tables package technology allows the user to seven minutes.” With Steamable packaging so popular, open the bag prior to cooking, pre-season Ocean Mist Farms located in Castroville, CA, the contents to their avor preference, reseal INTO THE FUTURE is expanding its Season and Steam line of with the zip lock and steam by microwave all New ideas for future fresh-cut packaging fresh convenient vegetables with cleaned and within the same bag. “e ability to pre-season are making their way to produce from other ready to cook fresh artichokes. “e Season the fresh vegetable contents prior to cooking industries. “Some new vendors have expe- rience in other industries such as meat and pharmaceuticals — giving them some unique perspectives,” says Naturipe’s McIntosh. “More companies are trying to sell their unique lm solutions with shelf-life extension properties into produce.” Apio Inc., found several new packaging techniques useful. “Hermetically sealed, rigid- to-rigid packaging, originally developed for products such as deli meats and pastas, is now found in the produce department,” says Stor- netta. “More earth-friendly packaging reducing the amount of total materials through the use of thinner lms, removal of lids, and printed lm replacing applied labels among other developments, is a trend that will continue to grow, both in and out of produce.” Stornetta also reports high-graphic card- board sleeves, used in the frozen and deli cate- gories for awhile, are now nding their way into produce. “is type of package design o ers greater visibility and print quality while allowing consumers to see the freshness of the product by removing the sleeve from the container,” she says. Established in the 1930s, Chantler Pack- aging, Inc., traditionally focused on a variety of industries, but since the year 2000, its main focus has been food packaging. Chantler Pack- aging’s PrimePro shelf-life-extension tech- nology is designed to reduce food waste from the beginning of the fresh-cut program. “If a grower is shipping whole pears or broc- coli, the grower or shipper uses our PrimePro shelf life-extension technology to ensure there is no food waste upon arrival at the fresh-cut facility,” explains Ferguson. “e fresh-cut people can build a whole story on what they are saving on food waste.” However, despite much innovation from outside the industry, Naturipe’s McIntosh credits much of the innovation to the produce industry. “Changes are coming directly from the produce industry and their supporting vendors,” she says. “Produce demands complex packaging solutions, and no one knows those Visit us at The CPMA Show Booth #351 needs better than people close to produce.” pb
118 / APRIL 2016 / PRODUCE BUSINESS sport-themed usage dried fruits & nuts
Appealing To ‘Sports Nuts’
Take them to the ball game Adam Cooper, vice president of marketing peanuts and other nuts have always been a or take them home, dried for Wonderful Pistachios & Almonds based great ballpark snack, and with the dierent fruits and nuts are a healthy in Los Angeles, sees pistachios as the perfect avored nuts that we make, such as Bualo options for sports fans. snack for sports spectating. Wonderful works Nuts, you can hardly go wrong promoting with produce managers to drive consumers sports food and beverages along with spicy BY CHRIS AUMAN to their sports-themed displays and bins. As nuts. Number two: the local sports team’s colors Cooper says, “Eating pistachios while watching are a great way for a tie-in, we have a number sports is one of the biggest consumer snacking of items, such as avored yogurt pretzels and ccording to a 2015 Gallup occasions. We utilize our in-house merchan- snack mixes with color components that tie poll, nearly 60 percent of dising team to supply retailers with high great together with the colors of the local the Americans surveyed graphic POS, bins, balloons, tuck cards, and sports team.” described themselves as more, that are timed to each major sporting Eric Boonshaft, brand marketing director sports fans. event, such as e Big Game, March Madness for Hampton Farms, headquartered in Severn, That’s a lot of spectators and a lot of and the baseball season.” NC, sees value in establishing that direct snacking potential. This habit of eating while Joseph Setton, vice president of domestic correlation with sports teams. “Hampton watching sports, both at home and at the sales and marketing for Setton Farms, head- Farms has licensing deals with Major League stadium,A means retailers have the opportu- quartered in Terra Bella, CA, also sees value in Baseball” (all U.S. teams) and select universi- nity to tie these two pastimes together and targeting sports fans. “Nuts are already a staple ties.” he says. “In-shell peanuts and baseball emphasize the convenience and health aspects for game day snacks, and generally loved by all,” go hand-in-hand, so displays with Hampton of dried fruits and nuts. he says. “Pistachios are an easy snack to share Farms and other complementary baseball-re- with a large group of people, both adults and lated products can drive a lot of excitement for NUTS ABOUT SPORTS children. e convenience of nuts also makes the produce department.” According to Mike Coskun, general them great to take along to the game, whether Peanuts and baseball certainly go together, manager of the Brooklyn Fare Market location it’s a little league event or a big league contest. but how about another American favorite? in Manhattan, “During major sporting events, Pistachios are convenient for outdoor events,” “We are also partnering with Budweiser, the we always create a display with various ‘go-to’ says Setton, “and the shells are biodegradable, ocial beer of Major League Baseball, to items for gatherings, and our nuts and fruits so there is less waste to worry about.” oer savings when Budweiser and Hampton are always displayed as they are big sellers. e “Our products are a perfect tie-in with Farms are purchased together,” says Boonshaft. quick-and-easy items enjoyed by many guests sports for a number of reasons,” says Chad “We know that basket rings are up 63% when are popular, and dried fruits and nuts do see Hartman, director of marketing for Tropical Budweiser and Hampton Farms peanuts are an increase in sales.” Foods based in Charlotte, NC. “Number one: in the shopping cart together.”
PRODUCE BUSINESS / APRIL 2016 / 119 dried fruits & nuts sport-themed usage TAKE ME OUT TO THE BALLGAME ese healthy snacks aren’t just conve- nient to serve while watching the big game at home. ey’re perfect for taking out to the ballgame. “We’re seeing many retailers display the MLB-licensed Hampton Farms peanuts, especially in stores in close proximity to stadiums,” says Boonshaft. “ ese are great impulse items at a great price. We encourage retailers to not only display in produce, but feature these products in multiple locations throughout the store including checkout, snack aisle, beer aisle, et cetera.” Matthew Buckley, executive vice president, Dang Foods’ coconut chips can be merchandised as a healthy snack or an ingredient. sales and marketing at Mamma Chia based in Carlsbad, CA, has the grab-and-go consumer One of our favorites is rich chocolate trues for healthy ways to add exciting avors to their in mind. “All of our products were created to using our Pistachio Chewy Bites. e recipe is lives,” says Cooper. “Wonderful Pistachios make the ‘Magic of Chia’ easily accessible in simple, and it’s a sweet treat that is convenient provides the perfect solution, with a variety a grab-and-go manner. Our Chia Squeezes since it is also a nger food.” of dierent avors like Sweet Chili and Salt and Chia Vitality Bars are especially perfect & Pepper, consumers feel like they have an for taking along for a boost of vitality at the DISPLAYS & CROSSMERCHANDISING assortment of healthy snack options.” game — for athletes and fans alike. Merchan- “Nuts in general lend themselves well to David Lipson, president of Valued Naturals dising those products alongside other more sports-themed display and demos,” says Setton. based in Dover, NJ, also believes the healthy traditional game foods create an opportunity “Consumers are looking for healthier snacks aspect of dried fruits and nuts relates well to for an incremental sale as people will consider that are fun to eat and taste great. Giving a the sports fans. taking a healthy snack option along with their sports-themed display the space it needs to “Depending on what type of event you are intended purchase.” attract attention, oering sales or coupons on talking about, many sports fans have good the displayed items, and supporting your local incomes and also solid food choices. Many of SERVING IDEAS: team will inuence sales in a positive way.” those people are not just about a hot dog and APPETIZERS, ENTREES, DESSERTS With coconut being a tropical fruit, Dang’s a beer. Packing in some trail mix, cashews, Vincent Kitirattragarn, founder and chief Kitirattragarn recommends tying in coconut almonds, or dried fruits would likely work very executive of Dang Foods based in Berkeley, chips to tropical-themed displays, “especially well. Our packaging is quite at and ts in a CA, sees a variety of uses for its products in the summertime. Memorial Day grilling, jacket pocket. Worst case scenario, save it for in dishes from appetizers to desserts. “We Fourth of July, Labor Day, are big holidays for the ride home [from the stadium].” recommend sprinkling our coconut chips on us. As far as sports go, coconut chips make for “Highlighting the health aspects is a great top of salads, yogurt, granola, oatmeal, baked a nice healthy snack while watching all sports.” choice,” says Setton. “Consumers are looking goods and ice cream. From the beginning, “Generally,” says Hartman, “I think if you for healthier snack options in general, even we recommended they be merchandised as a merchandise these snacks near other items sports fans. ey are also looking for new and healthy snack, but we encourage users to get that a consumer would pick up for game day, interesting SKUs, which is why we oer ve creative with Dang as an ingredient and share you can help its promotion. Bualo Nuts are naturally avored pistachio varieties. When it with their social networks.” a great grab-and-go snack anytime, but put sharing dried fruits and nuts with friends or Wonderful’s Cooper has seen recipe ideas them next to cold beverages and watch the sales family, consumers are aware of things like that tie-in well with the spread people lay skyrocket. Grabeez [Tropical Foods’ resealable gluten & natural. at’s why our pistachios, out for sports spectating. “We have hundreds cups oered in 15 varieties of nuts, snack mixes which are Non-GMO-project veried are of original recipes that have been created to and candies] is a great t for any cup holder, certied GF (gluten free), become easier make dishes from appetizers to desserts, but so if the display lends itself to that, let the choices for the customer. Oering healthy to simplify that, if you want to add a bualo customers see its convenient shape and size.” recipe cards alongside merchandise makes avor or nutty texture to a salad, bualo wings, it fun and easy for consumers to pick up the rice dishes or vegetarian dishes, Bualo Nuts THE HEALTHY SNACK OPTION extra items while at the store.” are a perfect t. To sweeten it up, you can add Snacking might be the most exercise a “We do highlight the nutritional value of our Praline Pecans to salads, desserts or even serious football fan gets during football season. chia and all of the other goodness that goes main entrees.” When we think of the spread laid out for into our products,” says Buckley of Mamma “Some consumers don’t know that shelled sporting events, we think of a variety of high Chia, “including the facts that they are all pistachios are available,” says Setton. “We made calorie, high fat items. Pizza, chips, wings, USDA Organic Certied and Non-GMO.” it convenient to bake and cook with pistachios nachos, all served with beer and soda. Nuts While the sport of sports spectating is often by doing all the work of removing the shells for and dried fruits on the other hand, help create accompanied by eating, consumers have healthy them. We have a collection of recipes available a healthy balance. options with dried fruits and nuts. It’s up to online that pair well with any event, from “Sporting events can be a time of overin- retailers to help them make the connection so simple dips and appetizers to decadent desserts. dulgence, and consumers are always looking they can make the sale. pb
120 / APRIL 2016 / PRODUCE BUSINESS retail perspective
Managing The Spring ‘Gap’
BY DON HARRIS n the produce world, as the weather begins to improve, we artichokes, avocados, corn, etc., in between the two holidays to anticipate the opportunities presented to us by new crops of key keep driving sales. Icommodities to jumpstart our sales momentum in the department It really takes little additional effort to aggressively plan for ad- to begin and drive higher volume toward the Summer selling season. ditional promotion when this gap occurs. In fact some retailers look Unfortunately, management does not always share these upbeat forward to the years when this gap occurs, with great anticipation feelings of a new season with opportunity in the same manner as we for the opportunity that it provides for driving extra sales by taking do in produce. Management’s thoughts often center upon the key advantage of new, fresh seasonal opportunities. holidays during that period — Easter and Mother’s Day. Planning for In taking aggressive action to promote produce operations during Easter, recovery from the Easter promotion, and the preparation for this period, these retailers are rewarded with establishing and foster- Mother’s Day are the produce priorities management puts on the ing increased sales plus providing crucial positive momentum heading calendar for the spring. into summer and the abundance of opportunities In a normal year, this is an adequate way to that are presented during this vital time of the year. approach this season. However, every few years a Certainly it would be in the best interest of the situation shows itself where there is a tremendous entire industry and certainly all retailers to actively gap of time between the two holidays, which re- This year’s six- utilize this “gap” to revitalize their departments quires a different reaction from management. Many week period and capture the customer’s attention. times management fails to react properly to this between Easter Adopting an aggressive promotional strategy “gap” and further proves “they just don’t get it”! for this timeframe doesn’t cost much in terms The gap we are talking about happens when and Mother’s of additional resources, but the benefits are far Easter occurs very early in the year and Mother’s Day is an reaching in terms of providing the opportunity to Day follows six weeks later. What is needed to opportunity lift the performance of the produce department properly build momentum and take advantage of to that “next level.” It would seem to be a small the opportunity represented by spring commodities to create investment that would yield a tremendous upside is an aggressive strategy that takes into account momentum in terms of establishing the foundation for building the vital need for promotional activity during this by promoting a record-breaking sales performance throughout six-week spring gap. the entire year. The pitfall many retailers and management falls new crop The “risk/reward” potential of such activity has into is to approach this period with indifference items. such an upside that it would seem negligent not to and, even in some cases, ignore its existence, take advantage of this opportunity and utilize the allowing produce sales to aimlessly drift through potential it has for driving positive results. Rather this timeframe. This type of approach leads to an than utilizing this six-week spring gap to allow the ominous “lull” in the sales momentum that is very difficult to regen- produce operations to “recover” from Easter and wait for Mother’s Day, erate when Mother’s Day arrives. the smart retailer would look at this gap as a tremendous opportunity The lull tends to continue into the early part of the summer and to carry the natural sales boost and momentum from Easter all the makes it extremely difficult to drive sales to the level that the oppor- way through Mother’s Day and into the summer. It would seem to be tunities warrant. It also makes the produce department personnel a simple matter of providing the opportunity for produce to turn in anxious and frustrated with the lack of sales momentum heading a record-breaking performance rather than “just another year.” pb into the key summer season. Now it is required to work harder than necessary to rebuild that momentum. For produce, this can take a promising year and turn it into a difficult one forcing the produce operation to play catchup. Fortunately, there are certain proactive, forward-thinking retailers that address this “gap” as an opportunity to further enhance the growth of produce sales by providing additional, targeted promo- Don Harris is a 40-year veteran of the produce industry, with most of that time spent in retail. He worked in every aspect of the industry, from “field-to- tional activity to take advantage of the influx of new seasonal fruits fork” in both the conventional and organic arenas. Harris is presently consult- and vegetables. These retailers schedule themed promotions such ing and is director of produce for the Chicago-based food charity organization, as “Spring Fling,” etc., with items featuring asparagus, berries, Feeding America. Comments can be directed to [email protected].
PRODUCE BUSINESS / APRIL 2016 / 121
Harris.indd 1 3/25/16 10:06 AM wholesale market
Keeping Your Cash In A Good Flow BY ALAN SIGER very week the trade press and credit reporting agencies list the years where I let a customer, who I knew well personally, insolvencies or PACA actions against firms that have not paid for get further beyond terms than I would have with someone I Eproduct purchased from others. Over the years, it seems there didn’t know. These were good people whose intentions were has been an increase in non-payment situations; with the cost of honorable, and intended to pay for what they purchased. product so high, it doesn’t take long for a company to owe hundreds Whether a friend or not, when these folks went under, we of thousands — or even millions of dollars — when things go bad. were the ones left holding the bag. When I joined Consumers Produce Company as a salesman in 1973, 7. If you do get into a situation where your company is not one of the first things I was taught was that a sale does not count getting paid according to agreed terms, act quickly, as every until the product is paid for and the money is in the bank. How does day counts. Let your customer know that if they don’t correct one navigate the minefield to make sure they are paid? I’ve seen a the situation, you’ll have no choice but to put them on a C.O.D lot of situations over the years and learned some expensive lessons; basis. Allow them a short period of time to get back within let me share some with you. terms and hold them accountable to that dead- 1. Do a credit check. It sounds obvious, but line. If you set up a payment plan on the old debt, I’ve seen folks who paid cash for a while Keeping a com- you should check with an attorney knowledgeable ask for a few days’ credit. A few days grows about the PACA Trust. An attorney can best guide into a few weeks, and all of a sudden, you pany’s accounts you on how to structure the agreement, as you don’t have a customer who has become a credit receivable in want to lose your rights under the Trust. customer while bypassing a credit check. check requires 8. The PACA Trust is wonderful for creditors Don’t just rely on a stock credit form for in our industry. Since its inception in 1984, information; use an industry credit service senior manage- the Trust has protected hundreds of millions like Blue Book Services, Inc. to get the ment oversight of dollars from banks and other non-pro- full story. to make certain duce creditors by insuring proceeds from 2. Use your sales team as eyes and ears on the the sale of produce were used to pay for ground. They talk with customers regularly that all employees that produce. However, getting paid under and may hear things about what’s going understand the the Trust most certainly requires getting an on in the marketplace. I’ve been saved a vital importance of attorney involved, resulting in an expensive few times by an early warning from a sharp and time-consuming process. Most impor- employee who picked up some scuttlebutt getting paid. tantly, the PACA trust only works if there are about a company having problems. assets still remaining; being first in line for 3. Management should set and enforce credit nothing doesn’t do one a lot of good. terms. Don’t put your sales team in a situation where the In a business where the commodity sold is highly perishable, customer is angry with them. If you are forced to shut off a it’s sometimes difficult to pass up a sale to someone with question- customer’s credit, let your accounts receivable person be able credit. When it’s late on a Friday and one has several pallets the “bad cop.” of ripe bananas that won’t make it through the weekend, and the 4. Treat a change in ownership like a new customer, or at least only customer around is slow pay, it’s can be a tough call. One may keep a close watch on their account. When a customer you choose to take that chance, but as stated above, that decision should partnered with for years sells to a new owner, they often be made by management not the salesperson. continue to operate under the old name. Just because the name Keeping a company’s accounts receivable in check requires senior is the same, it doesn’t mean the new company’s integrity or management oversight to make certain that all employees understand finances are the same. the vital importance of getting paid. This 43-year-old lesson is as true 5. Beware of generational changes in a family business. When today as it was in 1973. Stay focused on putting your receivables in the boss retires and passes the ownership down to the next the bank. pb generation, there’s no guarantee that the new leadership Alan Siger is chairman of Siger Group LLC, offering consulting services in can do the job. In addition, I’ve seen family businesses so business strategy, logistics, and operations to the produce industry. Prior to selling Consumers Produce in 2014, Siger spent more than four decades burdened with large payouts to the retiring generation that growing Consumers into a major regional distributor. Active in issues affecting they were unable to handle the debt load. the produce industry throughout his career, Siger is a former president of the 6. Don’t fall into the “friend trap.” I can think of a few times over United Fresh Produce Association.
122 / APRIL 2016 / PRODUCE BUSINESS Blue Book.indd 1 3/21/16 8:02 AM european market
What US Fruit Exporters Need To Know About The UK Market BY JOHN GILES, DIVISIONAL DIRECTOR, PROMAR INTERNATIONAL The U.S. has a long history of supplying a range of fruit products Africa both continued to invest significant sums of money in this to the U.K. market, especially for items such as apples, pears, grapes, sort of activity and were funded by a combination of government, soft fruit and berries. While for some time the U.S. produce industry growers/exporters and trade associations. has been looking at other growth markets in emerging countries U.K. retailers are renowned for having some of the highest quality (in the likes of India, China and parts of Latin America to add to the standards and technical specifications in the world. However, the overall export portfolio), it is worth noting what is happening in the long-term impact of the economic downturn has seen growth of the U.K. This is may be an indicator as to what might happen in other discount sector and caused retailers to be far more cost-conscious markets around the world too. than in the past. High-quality standards and systems of full trace- The structure of the U.K. fruit supply chain has altered significantly ability are key factors for all suppliers to be successful in the U.K., during the past few years, with increasing consolidation. The key to ensure they meet the requirements of U.K./EU food standards as points to note are as follows: well as specific additional retailer requirements. • The sale of fruit in the U.K. is still dominated by the “Big Four” There is extensive U.K. and EU legislation, and further commer- retailers (Tesco, Asda, Sainsbury’s and Morrisons). But wide- cial requirements, in areas such as pesticide usage, traceability of spread change is taking place with the growth of the German- produce etc., but these should not act as disincentive to serious U.S. based discount chains (Aldi and Lidl), online growers/exporters. Accreditations such as the shopping, and developments in the foodser- British Retail Consortium (BRC) and GLOBAGAP are vice sector, which all put pressure on the Even if U.S. seen as minimum standards to achieve. leading established supermarkets. businesses are not The traditional system of wholesale markets • Major U.K. retailers are now investing more has been under pressure for a long period of time, in direct-supply relationships to ensure the marketing fruit but has been rejuvenated by the growth of the integrity of the supply chain. This maneuver is direct to the U.K., foodservice and catering sectors. The leading food- seen as critical to ensure, and while different it is well worth service businesses in the U.K. now operate to the retailers all have their own business models same technical and commercial standards as the to achieve this, the basic aim is the same — keeping a close leading retailers. The catering sector is still quite more efficient supply chains, removing costs watch on key fragmented when compared to the retail sector, and getting closer to the grower base. structural but is also beginning to consolidate. • A relatively small number of highly influential The U.S. sector should look at what is importers and distributors is responsible changes. happening in the U.K. as an indication of what for supplying the leading retailers. They might happen in the future in other international are often specialists on certain products and geographical markets. While most U.K. retailers have a fairly modest international sourcing areas. They normally supply only two to three key footprint compared to some of the U.S. and other EU retail chains, their retail customers. U.S. (and other) growers and exporters need to influence on how supply chains develop around the world is strong. develop close working relationships with these key businesses Conversely, the U.K. remains a key import market for many to be successful in the UK. suppliers. The U.K. is roughly a 3 million tonne import market for The U.S. is still a highly regarded fresh produce supplier to the all fruit. Key suppliers include the likes of Spain, the Netherlands, U.K. and has largely overcome some technical concerns amongst South Africa, Chile, Central Americans and increasingly new suppliers, some importers in the past (e.g. water usage and labour issues). such as Peru. Many exporters in these countries use the fact that There is increasing attention to factors, such as Corporate Social they supply the U.K., with its exacting technical and commercial Responsibility (CSR) and the protection of the environment, but the standards, as an indicator as to the strength of their offer and ability U.S. should now see these as an opportunity area rather than a threat. to do business in one of the most demanding markets in the world. It is clear that the U.S. has also developed other international Even if U.S. businesses are not marketing fruit direct to the U.K., markets in the past few years. One of the concerns of the U.K. trade it is well worth keeping a close watch on key structural changes. is that U.S. growers and exporters pay more attention to markets in They act as an indicator as to what might happen elsewhere at some the likes of Southeast Asia and China than the U.K. This is under- stage in the future. pb standable from both sides and is just as much about perception as John Giles is a Divisional Director with Promar International, a leading reality. The U.S. could still strengthen its promotional position in the agricultural and horticultural value chain consulting company and a subsid- U.K. over the next few years by participating in major trade shows iary of Genus plc. He has been involved in a wide range of produce related and other trade-based events. As good examples, Chile and South assignments in the UK, the rest of the EU, Latin America, SE Asia and China.
124 / APRIL 2016 / PRODUCE BUSINESS NYPS-2016.indd 1 3/16/16 3:55 PM produce on the menu Transforming Your Foodservice at Retail Operation from Average to Awesome
BY AMY MYRDAL MILLER MS, RDN, FAND & CHEF SUVIR SARAN One of the biggest trends restaurant operators are watching today flavorful foods, focus first on salads. Produce can fit into all is how foodservice retail establishments are biting into their business. salad categories, from pasta and fruit salads to bean, greens, If you want to take a bigger bite of this business opportunity, you and grain-based salads. Need some inspiration? Check out Chef may need to make some changes to your offerings. Joyce Goldstein’s Mediterranean Fresh, a cookbook featuring If your deli case is still filled with coleslaw and macaroni salad 110 recipes for salads and 30 recipes for salad dressings to from a tub, assorted cold cuts, fried chicken, and meatloaf, maybe mix and match with the salads. These recipes are based on a it’s time to take a fresh look at your offerings. Here are some tips to mixture of seasons, mood, and marketing. get you started. 5. Pizza Pleases. Does your foodservice program include pizzas and flatbreads? If so, consider them blank canvases for culinary 1. Fresh Sells. “Fresh” is the most common descriptor used on creativity and presenting new flavor profiles. Pizzas and flat- American menus, according to insights from Chicago-based breads are a wonderful menu category for increasing sales of a market research firm Datassential. If you’re not already doing type of food Americans eat often. National dietary intake data this, try using the descriptor on your menu boards and signage. show that about 1 in 8 Americans eats pizza on any given day. Fresh means “good for me and my family” to your shopper, which More than 25 percent of boys (ages 6-19 years) eat pizza every plays into the growing trend of increasing day. And don’t overlook flatbreads. We think part of demand for health and wellness at retail. their appeal is based on its more artistic, “artisan” And while fresh can describe anything from shape. Artisan is synonymous with “hand-made” freshly baked bread to fresh caught seafood, or “made just for me.” Many in foodservice are most consumers equate fresh with produce. already capitalizing on flatbread as a way to add Freshly-prepared sauces and salad dressings interest to a popular menu category. According are another way to add additional appeal to to Guest Metrics (a Cambridge, MA-based data produce-centric menu offerings. analytics firm delivering consumer insights and 2. Local Sells. If you sell produce from local Green Beans with Coconut actionable intelligence to the food, beverage, vendors, don’t just highlight this in the hospitality and financial services industries) about produce department. Feature local produce in your foodser- 60 percent of recent incremental growth in the pizza category vice offerings as well. Restaurants across the country have in foodservice is due to the addition of flatbreads. been doing this for years, and consumers take notice. They 6.Snacks Satisfy. According to the Bellevue, WA-based The want to know how and where their food was produced; putting Hartman Group, half of all eating occasions are now snack a farm or farmer’s name on the menu adds more comfort and occasions, accounting for one-third of adult calorie consumption familiarity to new foods and flavors. in the United States. What can your foodservice operation do 3. Flavor Sells. Who’s running your foodservice operation? If to prompt more snacking? This can be as simple as providing it’s a trained culinary professional, they will likely welcome a greater variety of fresh-cut fruit in take-out containers; or you the opportunity to bring in some new flavor profiles from can develop a snack program that features unique dips and Asia, Latin America, and the Mediterranean. If your shoppers crackers. This year is the FAO “Year of the Pulse.” What about include Millennials who love trying new foods, they’ll appreciate a hummus program that features a different version each day you upping your game with new ingredients and offerings. A of the week? Chickpeas are obvious, but what about hummus common theme in the restaurant industry is “make the familiar made from beans, peas, and lentils? Let your bakery depart- exotic, and the exotic familiar” meaning you can introduce new ment contribute unique crackers, spiced pita chips, or crostini. flavors to familiar foods, and you can introduce new foods with There’s no end to the options for improving and enhancing your familiar flavors. Just don’t push your customer too far too fast. foodservice at retail program. We hope our ideas spur more creative And don’t make your customer work too hard to understand new and strategic thinking at your store! pb concepts. Provide menu names and descriptors that quickly tell the story of the new offering. Suvir’s Green Beans with Amy Myrdal Miller, MS, RDN, FAND (@AmyMyrdalMiller, www.farm- Coconut is a good example of an intensely flavorful dish that ersdaughterconsulting.com) is a farmer’s daughter from North Dakota, award-winning dietitian, culinary nutrition expert, and founder and president features a familiar ingredient with a more exotic yet appealing of Farmer’s Daughter Consulting. Suvir Saran (@SuvirSaran, www.suvir.com) flavor profile. is an award-winning chef, restaurateur, and cookbook author. Born in Delhi, 4. Salads Sell. If your strategy includes offering more fresh, India, today Suvir lives on a farm in upstate New York.
126 / APRIL 2016 / PRODUCE BUSINESS PRODUCE BUSINESS is accepting nominations for its Eleventh Annual 40-Under-Forty Project, which recognizes the produce industry’s top young leaders.
Honorees will be selected based on their professional accomplishments, demonstrated leadership and industry/community contributions. To be eligible, nominees must be under the age of 40 as of June 1, 2016 (People born after June 1, 1976).
To nominate someone, please fill out this form by April 15, 2016, and fax back to 561-994-1610 or go to our website at producebusiness.com and look for the 40 Under Forty icon to link to the online application.
Once nominated, the candidate will be interviewed by one of our editors, and will receive forms to fill out asking for detailed information. A candidate only needs to be nominated one time. Multiple nominations will have no bearing on selection.
ABOUT THE NOMINEE: Nominee’s Professional Achievements: First Name ______Last Name ______Approximate Age ______Company ______Position ______Nominee’s Industry/Community/Charitable Activities: Address ______City ______State ______Postal Code ______Country ______Phone ______Fax ______E-mail ______ABOUT THE NOMINATOR: First Name ______Last Name ______In 100 words or less, describe why this person should be nominated: Company ______(You can use a separate sheet for this) Position ______Address ______City ______State ______Postal Code ______Country ______Phone ______Fax ______E-mail ______
Nominator information is for our use only and will not be shared with candidate or have a bearing on selection. For more information email: [email protected]
40 Under 40-15.indd 1 3/16/16 3:57 PM voice of the industry
Disruptions In The Supermarket Business Model
BY BRIAN GANNON s time goes on, it seems that more retailers have less fresh image, slow sales. Without the proper labor and training, what’s employees taking care of produce display areas. Do you see left is mainly “filling,” which enhances the damage and leaves no time Athat as well? As a “customer” do you see displays in rough for cleaning, culling, customer contact, etc. shape, bad quality on display, tired merchandising materials, dirty Sure, proper training and passion need to be in place, but not conditions on the shelf, poor communication of item and price, and enough labor hours to get the job done right results in the develop- departments not ready for when “I” am shopping? ment of poor attitudes, and lack of passion — leading to employees to I’m seeing these conditions increasingly over time, and I tend to believe their mission is simply to fill. A successful produce operation give produce employees the benefit of the doubt, that if they “had is so much more than “filling” holes and low spots. the time” the display area presentation would be a much more A supermarket company will invest tremendous amounts of dollars positive influence to my buying more. And if given in furniture, color schemes, lighting, weekly promo- more time, produce managers could train their tions, in-store marketing pieces touting “fresh” employees better. Everything in etc. Yet executives pay little attention to the very The ability of the produce department to make reason that people are coming into their stores, more of a contribution is lost by the simplicity of the supermarket to select “fresh” produce, from clean surfaces. what can easily be documented on a P&L state- should back up Everything in the supermarket should back up ment. Labor savings over the previous year is much from the “point from the “point of purchase.” Because when the easier to change, show savings, and is more cele- grapes, berries, lettuces, apples, etc. can’t be brated. Yet what happens with sales, shrink, fresh of purchase.” visually impressive to stimulate purchase, then image, and units sold is somehow viewed through Because when the all the other investments (such as marketing and a different lens, and not tied back to the impact of grapes, berries, physical plant) are worthless. reduced labor. It’s this very pitting of labor-savings One does not need “formal” studies to under- success, against a supermarket’s decreasing sales lettuces, apples, stand the growing gap in ideal labor versus the and customer count, that creates tension between etc., can’t be current situation. This understanding starts with the areas of sales and operations within retailers. visually impres- proper supervision that spends time in a produce Just at a point in time when fresh, clean, excit- department — regularly walking the entire produce ingly merchandised produce departments could be sive to stimulate department and storage areas to observe negative the saving grace of many supermarket operators, purchase, then gaps. Noting the negatives will create the under- the various competitive pressures now confronting all the other standing of what’s needed to close the gaps. Yes, supermarkets’ profit margins, and the high cost of in some instances, it will be correcting an approach labor in the business model, resulted in a slow, but investments (such to the job, but I believe in the end, many “gaps” steady erosion of hours invested. In the absence as marketing and will be corrected by “intelligently” adding hours. of any proven “conversion factor” clearly demon- physical plant) Without supervision paying attention, the lack of strating the effect of labor contribution to fresh labor will never be understood. produce success, many supermarkets appear to are worthless. If brick-and-mortar supermarkets are to survive, be on a downward spiral. it’s the point-of-purchase in produce that needs the It would be great to have an institution like a Cornell University or intelligent investment of labor, training, supervision, and passion. St. Josephs College do a study on the unique relationship in produce I think the type of comprehensive study I’m suggesting, and the retail of applying the correct labor, and what that does for increased published results, would give more retailers the confidence to take sales, profits, and fresh image — not just for the produce department, the step of reinvesting in labor. A renewed focus by supervision will but how increased labor investment in produce results in driving the result in increased sales, customer loyalty, and more profits for the supermarket business model. retailer as well as everyone in the fresh produce supply chain. pb It’s been well documented that produce customers have larger Gannon has more than 33 years experience in the produce industry. baskets when they get to registers. Well run produce departments He career offers extensive experience managing sales strategies, working generate more loyal customers and are typically the best department within senior levels of the retail grocery supply chain, managing strategic business relationships, improving year-to-year performance, driving top line for attracting new customers. Without proper labor and/or labor applied sales growth, designing sales and merchandising plans, improving account at the right times, the negatives begin to build fast; poor quality fruits relations, rolling out new product lines and programs, and maximizing and vegetables left on display, doing serious damage to the quality and profitability.
128 / APRIL 2016 / PRODUCE BUSINESS information showcase
Receive supplier information fast by using the PRODUCE BUSINESS Information Showcase. Here’s how: APRIL 2016 Contact the advertiser directly via the website, email, or phone listed in the ad. COMPANY PAGE # PHONE WEBSITE COMPANY PAGE # PHONE WEBSITE Anthony Vineyards, Inc...... 118...... 661-858-8300 ...... www.anthonyvineyards.com Kern Ridge Growers, LLC ...... 97 ...... 661-854-3156 ...... www.kernridge.com
A&A Organic Marketing, Inc...... 96...... 831-685-0303 Keystone Fruit Marketing, Inc. ...63 ...... 717-597-2112 ...... www.keystonefruit.com
Albert’s Organics ...... 97...... 800-996-0004 ...... www.albertsorganics.com Keystone Fruit Marketing, Inc. .102 ...... 717-597-2112 ...... www.keystonefruit.com
Anthony Vineyards, Inc...... 105...... 661-858-8300 ...... www.anthonyvineyards.com King Fresh Produce LLC ...... 30 ...... 559-596-2040 ...... www.kingfresh.com
Anthony Vineyards, Inc...... 96...... 661-858-8300 ...... www.anthonyvineyards.com Koornneef Produce Ltd ...... 73 ...... 416-255-5188 ...... www.koornneefproduce.com
Avocados From Mexico ...... 43...... 517-641-2152 .....www.avocadosfrommexico.com Lehmann & Troost BV ...... 13 ...... 180-631011 ...... www.lehmann-troost.nl
Awe Sum Organics, Inc...... 97...... 831-462-2244 ...... www.awesumorganics.com LGS Specialty Sales, Ltd...... 45 ...... 800-796-2349 ...... www.lgssales.com
Babe Farms, Inc...... 105...... 800-648-6772 ...... www.babefarms.com F.G. Lister & Co., Ltd...... 74 ...... 416-251-6591 ...... www.fglister.com
Bamford Produce ...... 76...... 416-259-5400 ...... www.everythingproduce.ca Litco International, Inc...... 68 ...... 855-377-6118 ...... www.litco.com
Big Red Tomato Packers ...... 92...... 772-466-0700 ..... www.bigredtomatopackers.com Malena Produce, Inc...... 60 ...... 520-281-1533 ...... www.malenaproduce.org
Blue Book Services...... 123...... 630-668-3500 ...... www.producebluebook.com Mann Packing Company, Inc...... 17 ...... 800-884-6266 ...... www.veggiesmadeeasy.com
Bondi Produce Co. Ltd...... 76...... 416-252-7799 ...... www.bondiproduce.com Melissa’s/
Cabo Fresh...... 47...... 310-342-5363 ...... www.cabofresh.com World Variety Produce, Inc..... 97 ...... 800-468-7111 ...... www.melissas.com
California Agricultural MIXTEC Group ...... 68 ...... 626-440-7077 ...... www.mixtec.net
Leadership Foundation ...... 111...... 831-585-1030 ...... www.agleaders.org/apply NatureSweet Ltd ...... 91 ...... 210-408-8557 ...... www.naturesweet.com
California Avocado Commission .. 5...... 800-344-4333 .www.californiaavocado.com/retail Pacific International Marketing.. 97 ...... 831-422-3745 ...... www.pim4u.com
California Sun Dry Foods...... 92...... 800-995-7753 ...... www.calsundrytomaoes.com Peri & Sons Farms ...... 102 ...... 775-463-4444 ...... www.periandsons.com
Canadian Produce Phillips Mushroom Farms...... 114 ...... 800-722-8818 . www.phillipsmushroomfarms.com
Marketing Association ...... 49...... 613-226-4187 ...... www.cpma.ca Primavera Marketing, Inc...... 105 ...... 209-931-9420 ...... www.primaveramarketing.com
Capital City Fruit Co., Inc...... 36...... 515-981-5111 ...... www.capitalcityfruit.com Prime Time...... 31 ...... 760-399-4166 ...... www.primetimeproduce.com
L. Cherrick Horseradish Co., Inc. 37...... 314-421-5431 Produce for Better
Concord Foods ...... 46...... 508-580-1700 ...... www.concordfoods.com Health Foundation ...... 39 ...... 302-235-2329 ...... www.pbhfoundation.org
Creative Options J.E. Russell Produce Ltd ...... 75 ...... 416-252-7838 ...... www.jerussell.ca
Communications...... 56...... 972-814-5723 ...... www.palmelitas.com Shuman Produce, Inc...... 101 ...... 912-557-4477 ...... www.realsweet.com
Del Monte Fresh Produce...... 132...... 800-950-3683 ...... www.freshdelmonte.com Silver Creek Software ...... 36 ...... 208-388-4555 ...... www.silvercreek.com
Dole Fresh Vegetable Co...... 2...... 800-333-5454 ...... www.dole.com South Carolina
Dole Fresh Vegetable Co...... 15...... 800-333-5454 ...... www.dole.com Department of Agriculture ..... 55 ...... 803-734-2225 ...... www.agraculture.sc.gov dProduce Man Software ...... 115...... 888-PRODMAN ...... www.dproduceman.com Stronach & Sons, Inc...... 74 ...... 416-259-5085
Dulcinea Farms...... 11...... 559-255-5400 ...... www.pacifictrellisfruit.com Sunkist Growers, Inc...... 59 ...... 818-986-4800 ...... www.sunkist.com
Family Tree Farms ...... 105...... 866-FLAVOR-1...... www.familytreefarms.com Sunshine Bouquet Co...... 30 ...... 305-599-9600 ...... www.sunshinebouquet.com
Farmer’s Daughter Twist Ease ...... 51 ...... 888-623-8390 ...... www.twistease.com
Consulting LLC...... 60...... 916-564-8086...... farmersdaughterconsulting.com United Fresh Produce Assoc...... 38 ...... 202-303-3400 ...... www.unitedfresh.org
Fierman Produce Exchange ...... 37...... 718-893-1640 United Fresh Produce Assoc...... 95 ...... 202-303-3400 ...... www.unitedfresh.org
The Flavor Tree Fruit Company .....9...... 559-389-5845 ...... www.flavortreefruit.com The USA Bouquet Co...... 14 ...... 800-306-1071 ...... www.usabq.com
The Florida Tomato Committee ..93...... 407-660-1949 ...... www.floridatomatoes.org Veg-Pak Produce, Ltd...... 71 ...... 416-259-4686 ...... www.vegpakproduce.com
Fresh Farms ...... 61...... 520-281-2030 Vidalia Onion Committee ...... 99 ...... 912-537-1918 ...... www.vidaliaonion.org
Fresh Origins, LLC...... 35...... 760-736-4072 ...... www.freshorigins.com Vlam Flandria ...... 33 ...... 32 2/720.05.17 ...... www.freshfrombelgium.eu
Giorgio Fresh Co...... 115...... 800-330-5711 ...... www.giorgiofresh.com West Lake Fresh ...... 105 ...... 831-724-0644
Grower Alliance, LLC...... 26-27...... 520-761-1921 ...... www.groweralliance.com Wonderful Company ...... 7 ...... 661-720-2500 ...... www.wonderfulcitrus.com
Harris Consulting Solutions ...... 51...... 269-903-7481 Zespri International ...... 65 ...... 650-368-2870 ...... www.zesparikiwi.com/retail
Idaho Potato Commission ...... 23...... 208-334-2350 ...... www.idahopotato.com/retail Kurt Zuhlke & Association ...... 118 ...... 800-644-8729 ...... www.producepackaging.com
Inline Plastics Corp...... 117...... 800-826-5567 ...... www.inlineplastics.com
PRODUCE BUSINESS / APRIL 2016 / 129 BLAST FROM THE PAST
united’s centennial milestone
reak out the Champagne for a toast to the 100th anniver- Taylor explains how a shopper would enter the store, proba- sary of United Supermarkets, a milestone reached by few bly with a list of items, and the clerk would fill the order for that bbusinesses. Despite humble beginnings, the Texas-based shopper. “In other words, it was not the norm for a shopper to chain has now grown to 66 stores in 36 communities under five browse the store and choose their own items off a shelf,” he says. unique banners: United Supermarkets, Market Street, Amigos, The shift to store layouts like you see at United today — with Albertsons Market and United Express. produce, meat, dairy and bakery in the perimeters — was “ne- In 1916, United Cash Store (pictured) opened in Sayre, OK, and cessitated by the need to showcase the vast variety of items marked the founding of the company by Henry Dewitt Snell. United available now.” moved to the company’s now headquarter city of Lubbock, TX, in Taylor points to today’s culture, where food is more than just 1956 when Jack Snell, son of H.D. Snell, purchased three Safeways. the basic necessity it used to be. “Now, so many people shop for The company continued its expansion over the next four de- food related to a specific lifestyle or dietary need, like gluten-free, cades under the leadership of Jack and his son. By 1991, The low sodium or sugar-free. It’s our job to have stores that allow our United Family stores were in 20 communities throughout Texas. guests to see and consider all the different offerings available in Later, in 1998, the company adopted a strategic growth plan, this day and age,” he says. which called for new stores, innovative concepts, diverse market “We hear from guests all the time that freshness is of critical expansion and self-distribution. importance. To deliver on that need, we continually strive for Also that year, the company introduced Market Street in Wichita produce to go from field to table at the peak of freshness in very Falls, a new concept that called for new stores, innovative concepts, short time frames.” diverse market expansion and self-distribution. In addition to the fresh aspect, Taylor says the desire for guests “One of the really amazing things that paved the way to such to have access to organic and local produce led to expanded sec- an expanded produce section from what you see in the photo is tions. “We will likely continue to see produce as an evolving and how fast we are able to get fresh produce in our stores,” says expanding category in our industry. Reaching our 100th anniversary Robert Taylor, chief executive of United Supermarkets. “Back in is a remarkable accomplishment, and a true testament to the hard the early 1900s, the grocery shopping experience looked vastly work and dedication of all our team members through the years, different than it does today.” as well as our loyal guests in each of our communities.” pb
130 / APRIL 2016 / PRODUCE BUSINESS PBH PeriNews.indd 1 3/16/16 3:59 PM Del Monte.indd 1 3/16/16 3:45 PM