AKING ETROIT B ANANAS MPORTS I : D : ISTRIBUTION • B • $9.90 D OLIDAY ROFILE P MERICAN OOD NIONS INSIDE: • H • A F O ND A EGIONAL ENTRAL MPORTED • R • • C • OODSERVICE ARKETS F • I • M N I NOV 2014 •VOL. 30 • NO. 11 NO. • 30 •VOL. 2014 NOV OT H SPARAGUS WWW.PRODUCEBUSINESS.COM A S VOCADOS ’ A HOLESALE ERCHANDISING HAT W M W OR ERUVIAN EXICAN F INTER M • P • • W • ITRUS RACTICES C P EST OODTOWN B PSK F PSK XAMINES E UNDIT P HE T
Cover Nov-Use_Layout 1 11/5/14 5:32 PM Page 1 Page PM 5:32 11/5/14 1 Nov-Use_Layout Cover NOVEMBER 2014 DOLE Fruit_Ad 10/14/14 4:46 PM Page 1 TOC_Layout 1 11/5/14 4:22 PM Page 1
NOV. 2014 • VOL. 30 • NO. 11 • $9.90
PHOTOS FROM THIS MONTH’S COVER SHOWCASE THE FOLLOWING STORES (LISTED CLOCKWISE): NUGGET MARKET IN EL DORADO HILLS, CA (PHOTO PROVIDED BY STORE); PSK FOODTOWN IN BROOKLYN, NY; AND IGA GRANITE FALLS IN GRANITE FALLS, WA (PHOTO PROVIDED BY UNIFIED GROCERS). p.40 p.50 27 INDEPENDENT STORES THRIVE WITH SMART PRODUCE STRATEGIES Service, quality and flexibility allow sole proprietors to take 40 TURN UP THE HEAT ON WINTER PRODUCE SALES on a unique role in retail. Holiday season should generate lots of profits and good cheer to boot. 50 GREAT VEGETABLE OPPORTUNITIES ABOUND IN CENTRAL AMERICA Production developments in Guatemala, Honduras, Costa Rica, Nicaragua and Panama present fresh sourcing potential. 18 THE FRUITS OF THOUGHT The Independent Opportunity 56 MEXICAN AVOCADOS RISE AS PRODUCE CHAMPIONS Nowadays these luscious fruits are scoring points year-round. 94 RETAIL PERSPECTIVE Is PMA’s Fresh Summit Worth Attending? 62 STAYING SWEET ALL YEAR LONG Imports from south of the border bring continuous 95 EUROPEAN MARKET sales for sweet onions throughout the winter. Examining Produce Opportunities For The US In Europe 96 EUROPEAN MARKET p.62 Is There Room For Another Banana Brand? p.56
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.
NOVEMBER 2014 • PRODUCE BUSINESS 3 TOC_Layout 1 11/5/14 4:25 PM Page 2
NOV. 2014 • VOL. 30 • NO. 11 • $9.90
6 THE QUIZ
8 PRODUCE WATCH p.69 p.87 16 WASHINGTON GRAPEVINE 20 RESEARCH PERSPECTIVES MERCHANDISING REVIEWS 65 Bananas – A Volume Leader Taken For Granted 21 COMMENTS AND ANALYSIS Give this popular fruit space, and sales will grow. 69 Sustaining Citrus Profitability 22 FORWARD THINKING Merchandising that educates and promotes citrus is a recipe for success. 76 The Top 10 Ways To Sell Peruvian Asparagus 97 INFORMATION SHOWCASE Focusing on a few merchandising tips can profitably impact winter sales.
REGIONAL PROFILE: DETROIT 98 BLAST FROM THE PAST 82 Good Business Practices Propel Detroit Produce Industry Thriving suburbs help to offset problems found within the city limits.
FOODSERVICE PROFILE 87 What’s Hot And What’s Not In Foodservice Vast array of produce offers endless opportunities for chefs to create the next big thing on the plate.
DRIED FRUIT AND NUTS 91 Bake Up Holiday Sales Of Dried Fruits And Nuts High margins and low shrink help these items boost the bottomline. p.36 24 FROM THE PAGES OF THE PERISHABLE PUNDIT World Union Of Wholesale Markets And The Food And Agriculture Organization Unite To Identify Best Practices For Markets And Food Distribution 12 RISING STAR RECEPTION PRODUCE BUSINESS, in conjunction with sponsors, MIXTEC Group and Ocean Mist Farms, hosted the 10th annual reception to celebrate this year’s 40- Under-Forty class. 36 ASCENDENT INDEPENDENTS: PSK FOODTOWN This retailer fuses independent-style customer p.65 service and product variety with large-scale force.
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 PRODUCE BUSINESS • NOVEMBER 2014 Del Monte_Ad 10/21/14 5:40 PM Page 1 Quiz_Layout 1 11/4/14 4:45 PM Page 1
PRODUCE QUIZ
THIS MONTH’S WINNER Chuck Plummer Manager, Supply Management NOV. 2014 • VOL. 30 • NO. 11 • $9.90 Robinson Fresh P.O. Box 810425 • Boca Raton • FL 33481-0425 Phone: 561-994-1118 • Fax: 561-994-1610 Eden Prairie, MN [email protected] Before Chuck Plummer industry,” Plummer says. “I realized that I PRESIDENT & EDITOR-IN-CHIEF started at Robinson Fresh, wanted to explore a career outside of gov- James E. Prevor he worked for the USDA ernment and more directly planted within [email protected]
Economic Research Service the industry itself. PUBLISHER/EDITORIAL DIRECTOR for 13 years as an agricul- “I thoroughly enjoy daily interactions Ken Whitacre tural economist. During his years at the with individuals on both the production and [email protected] USDA, Plummer’s focus was on the produce marketing ends of the spectrum,” Plummer VP EDITORIAL industry — including aspects such as says. “It allows me to learn something new Ellen Koteff researching and analyzing various commod- every day and provides various perspectives [email protected] ity markets. to any given situation which, in turn, SPECIAL PROJECTS EDITOR “It was during my time at USDA that I inspires creativity, innovation and positive Mira Slott [email protected] became very interested in the produce collaboration.” INTEGRATED CONTENT EDITOR How To Win! To win the PRODUCE BUSINESS Quiz, the first thing you have to do is enter. The rules are simple: Read Michele Sotallaro through the articles and advertisements in this issue to find the answers. Fill in the blanks corresponding to the [email protected]
questions below, and either cut along the dotted line or photocopy the page, and send your answers along with a PRODUCTION DIRECTOR business card or company letterhead to the address listed on the coupon. The winner will be chosen by drawing from Diana Levine the responses received before the publication of our January issue of PRODUCE BUSINESS. The winner must agree to sub- [email protected] mit a color photo to be published in that issue. PRODUCTION LEADER Jackie Tucker
PRODUCTION DEPARTMENT WIN A CAST IRON FIRE PIT Sunshine Gorman This pit comes complete with a dome-fire screen coated in Freddy Pulido a high-heat paint, decorated with a slate stone paver-look on Christopher Sizemore
the cast iron rim, and a wood grate. The decorative steel legs EVENT COORDINATOR support the 30-inch black porcelain enamel fire bowl. A screen- Jackie LoMonte lift tool is also included. The assembled dimensions are: 39.01" [email protected] L x 39.01" W x 20.88" H x 59.4 pounds. EDITORIAL INTERN Madeline Mesa [email protected]
CONTRIBUTING WRITERS QUESTIONS FOR THE NOVEMBER ISSUE Carol Bareuther, Linda Brockman, Mindy Herman, Bob Johnson, Keith Loria, Bill Martin, Gill McShane, 1) What are the Row numbers in the address for S.Katzman Produce and Katzman Berry Corp? Jodean Robbins, Anthony Stoeckert, Lisa White ADVERTISING ______Eric Nieman, Associate Publisher [email protected] 2) What’s the name of the Produce Director in the ad for Idaho Potatoes? ______Linda Bloomfield [email protected] ______Katrina Brown [email protected] 3) What is the 800-number for Tanimura & Antle? ______Sandy Lee [email protected] Kelsee Loche 4) What is the brand name of the new Del Monte juices? [email protected] Bill Martin [email protected] Ellen Rosenthal 5) What types of fruit are in the two containers shown on the POM Wonderful ad? [email protected] Gino Valconi [email protected]
FLORAL DEPARTMENT MARKETING 6) What kind of fruit is wearing sunglasses on the Direct Source Marketing ad? ______E. Shaunn Alderman [email protected] Send insertion orders, payments, press releases, photos, letters to the editor, etc., to This issue was: Personally addressed to me Addressed to someone else PRODUCE BUSINESS, P.O. Box 810425 Boca Raton, FL 33481-0425 o o PH: 561.994.1118 FAX: 561.994.1610
Name ______Position ______PRODUCE BUSINESS is published by Phoenix Media Network, Inc. James E. Prevor, Chairman of the Board Company ______P.O. Box 810425, Boca Raton, FL 33481-0425. Entire contents © Copyright 2014 Address ______Phoenix Media Network, Inc. All rights reserved. Printed in the U.S.A. City ______Publication Agreement No. 40047928 State ______ZIP ______Phone ______Fax ______Photocopies of this form are acceptable. Please send answers to: NOVEMBER QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425
6 PRODUCE BUSINESS • NOVEMBER 2014 Paramount Citrus A1_Ad 10/10/14 12:27 PM Page 1 Watch_Layout 1 10/23/14 10:48 PM Page 1
PRODUCE WATCH
TRANSITIONS FRESH DIRECT PRODUCE LTD. VANCOUVER, BRITISH COLUMBIA KINGSTON FRESH Fresh Direct Produce Ltd. announces Debra IDAHO FALLS, ID Boyle joins its management team as Kingston Fresh, LLC, announces industry director of business development. The veteran Sandy Gatanio will join the Kingston company sources and imports more than team and fill the newly created position of 600 different fruit and vegetable items from product manager for specialty vegetables and 28 countries and distributes produce to berries. Gatanio’s immediate focus will be on grocery retailers and foodservice distribu- establishing these new categories and tors across Canada. markets to add to Kingston’s expanding product lines.
ALLEN LUND COMPANY LA CAÑADA FLINTRIDGE, CA THE CALIFORNIA AVOCADO COMMISSION Allen Lund Company promotes Beau Thompson IRVINE, CA to business development specialist. Thompson The California Avocado Commission (CAC) announces attended Western Illinois University, where he that produce veteranConnie Stukenbergreturns to graduated with a Bachelors of Business- the Commission staff full-time as retail marketing Marketing. He then began his career at the Allen director. Stukenberg’s expanded responsibility with Lund Company as a transportation broker. CAC includes managing corporate accounts such as Albertsons, Costco and Safeway. She also has responsibility for retail marketing in Arizona and California.
VEGA PRODUCE DORAL, FL Vega Produce hires Joseph Gunter as a new MONTEREY MUSHROOMS, INC. sales manager. In his new role, Gunter will direct WATSONVILLE, CA sales and marketing efforts to grow the existing Monterey Mushrooms, Inc. hires Andrea and new business relationships. Gunter will also Allen as its southeast region sales work in specialties, oriental vegetables and trop- manager. In this role, Andrea will manage icals. Gunter has 31 years’ experience in the fresh mushroom sales with both Retail produce industry. and Foodservice customers in the seven states surrounding the Mid-Atlantic and Southeast Regions. Andrea is based out of Charlotte, NC and is primarily assigned to Monterey’s farm in Loudon, TN. STEMILT AWARDS LICENSE TO NEW UNIVERSITY OF MINNESOTA APPLE CULTIVAR The University of Minnesota awarded Stemilt Growers, Wenatchee, WA, the license to grow, pack, and market a new, early-to-ripen apple cultivar. The patent ANNOUNCEMENTS name for the cultivar is MN55, and the University of Minnesota plans to trade- mark a name for the fruit in conjunction with Stemilt in the near future.
AVOCADOS FROM MEXICO LAUNCHES NEW “HUNGRY FOR FOOTBALL” PROMOTION Avocados from Mexico (AFM), Dallas, TX, announces it will partner COLUMBINE VINEYARDS with Ro*Tel, a ConAgra Foods ANNOUNCES ECO- brand, for its “Hungry for Football” FRIENDLY SALES BAGS promotion. The promotion is designed to get customers and A new collection of bags are consumers excited about the HARRIS TEETER AND TITAN FARMS being rolled out by season and enthusiastic about incorporating AFM into TEAM UP TO FIGHT HUNGER Columbine Vineyards, its celebrations. The “Hungry for Football” campaign Titan Farms, Ridge Spring, SC, and Delano, CA, to feature its runs now through Dec. 15. Harris Teeter, Matthews, NC, donated high-quality table grapes. more than 58,000 pounds of peaches The new stand-up, innova- to the Second Harvest Food Banks in tive design and vibrant color Winston-Salem and Charlotte, NC, to selection were created to LOVE BEETS UNVEILS NEW BRANDING help feed the hungry in the local catch the consumers’ eyes Love Beets, Philadelphia, PA, announces a communities. This donation is part of and allow for easier storage. company-wide re-branding campaign. The fresh the retailer’s participation in the The bags use 6.5 percent new look reflects the brand’s approach to second-annual “Peaches with A less plastic than the previous preparing and eating beets. Its new, state-of- Purpose” program sponsored by peach bags. Columbine will be the-art packaging aligns with its commitment to grower Titan Farms. launching the new Milano providing consumers with quality products. The bag in 2015. new branding continues to roll out nationwide through the end of the year.
Produce & Floral Watch is a regular feature of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a color photo, slide or transparency to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]
8 PRODUCE BUSINESS • NOVEMBER 2014 Pom Wonderful_Ad 10/16/14 12:13 PM Page 1 Watch_Layout 1 10/23/14 10:48 PM Page 2
PRODUCE WATCH
ANNOUNCEMENTS NATURAL DELIGHTS MEDJOOL DATES DOMEX SUPERFRESH GROWERS DEEMED HEART-HEALTHY FOOD LAUNCHES NEW SWEEPSTAKES Natural Delights Medjool Dates, Bard Domex Superfresh Growers, Valley, CA, announces its dates were Yakima, WA, launches a new social certified as a heart-healthy food by the media promotion called “Your American Heart Association’s Heart- Awesome Apple Recipe Sweep- Check Food Certification Program. stakes.” The company offers a Medjool dates are also naturally sweet, suite of in-store and online part- gluten-free, nut-free, Kosher, Halal and nership opportunities including vegan — making them an ideal sugar ready-to-post social content, pre- substitute in recipes and a heart- designed POS materials and co- healthy snack for people with various sponsored #EatApples Twitter parties. Through a random dietary needs. drawing, three winners will be announced this month.
NEW PRODUCTS GARDEN CUT LAUNCHES NEW BRANDING AND LABEL DESIGN Garden Cut, Indianapolis, IN, launches a new branding and label design for its pre-cut and ready-to-use products in retail stores. A new “To-Go Snack” line of produce-based products has also been released during the launch. The newly branded Garden Cut products, sold throughout the Midwest, will be available in hundreds of grocery stores. SAN MIGUEL PRODUCE EXPANSION San Miguel Produce, Inc., Oxnard, CA, announces a two phase, groundbreaking NASOYA'S NEW TOFUBAKED expansion of new and increased AIMS TO CONVERT TIMID growing/processing operations in both the TOFU SHOPPERS East and West. The first of the company’s Ayer, MA-based Nasoya has been expansion is the addition of the new Georgia courting retailers since May with its plant to open winter of 2014. The second new TofuBaked product. The pre- phase is the addition of 40,000 square feet to cooked, marinated tofu, which is avail- its current plant in Oxnard, CA. able in Sesame Ginger and Teriyaki flavors, takes the guesswork out of tofu — providing home cooks with a ready-to-eat way to prepare and serve VEG-FRESH FARMS tofu. The product launched nationwide EXPANDS PRODUCT PORTFOLIO and was featured at the Nasoya booth during this year’s the PMA convention. Veg-Fresh Farms, Corona, CA, announces the SWEET expansion of its business and launch of the GOURMET new consumer label Crystal Cove Berry Farms. PEARS’ NEW Sourcing strawberries throughout Mexico and California’s fertile berry growing regions, Crystal PACKAGE Cove Berry Farms will be a valuable and ROLLS OUT SUNKIST’S NEW FRUIT BAG consistent supplier of fresh berries to foodser- CMI, Wenatchee, Snack it Forward, LLC, Los vice and retail starting in the spring of 2015. WA, announces the Angeles, CA , announces the national rollout of launch of Sunkist Fruit 2.0, a its new pouch bag new line of natural and for Sweet Gourmet healthy freeze-dried fruit. Pears. Introduced Fruit 2.0 is pure fruit on a test basis last healthiness in a whole new year, the bag proved to way to eat 100 percent be a hit with consumers. This season, CMI is real fruit. Fruit 2.0 will be launching the Sweet Gourmet Pears 3-pound rolling out to grocery, convenience pouch bag, in Bartlett and D’Anjou varieties, and mass merchandise retailers nationwide in select stores across the U.S. beginning in the fourth quarter of 2014.
CORRECTION
POM WONDERFUL LAUNCHES NEW ANTIOXIDANT SUPER TEAS Because of an editing error, POM Wonderful, Los Angeles, CA, introduces new Tanimura & Antle’s company Antioxidant Super Teas: Pomegranate Lemonade Tea, name was spelled incorrectly in Pomegranate Sweet Tea and Pomegranate Honey Green the headline of the company’s Tea. POM’s No.1-selling Pomegranate Peach Passion PMA Aisle By Aisle Booth Review White Tea will join the new Antioxidant Super Teas with in the September issue of PRODUCE a fresh new look and convenient new size. BUSINESS. We regret the error.
Produce Watch is a regular feature of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a color photo, slide or transparency to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]
10 PRODUCE BUSINESS • NOVEMBER 2014 PBH Floral_Ad 10/10/14 4:21 PM Page 1 Rising Stars_Layout 1 10/29/14 12:12 PM Page 1
THE RISING STAR-= RECEPTION On Friday, October 17, at the PMA Fresh Summit convention in Anaheim, CA, PRODUCE BUSINESS in conjunction with sponsors, MIXTEC Group and Ocean Mist Farms, hosted the 10th Annual Rising Star Reception to celebrate this year’s 40-Under-Forty* class. In addition to the class of 2014, attendees included members from previous classes as well as many movers and shakers of the produce industry. The students and faculty from U.S. and international colleges, who were participants of the Pack Family/PMA Career Pathways Fund, were also honored guests.
*40-Under-Forty, an annual feature of PRODUCE BUSINESS, honors the produce leaders of tomorrow, all of whom have been chosen by industry mentors for their industry and community accomplishments. Please see this year’s winners by visiting www.producebusiness.com and clicking on our June 2014 issue. You can also nominate candidates for next year’s class by clicking on the 40-Under-Forty icon.
The 2014 Class of 40 Under Forty Winners
(L-R): Katiana Valdes, Emanuel Lazopoulos (L-R): Jeannine Martin, Megan Schulz and Rudy Ruiz (L-R): Garrett Patricio and Blake Patricio and Melissa Athanasopulos of The Giumarra Company. of Westside Produce
PHOTOS COURTESY OF DEAN BARNES DEAN OF COURTESY PHOTOS of Del Monte Fresh Produce
12 PRODUCE BUSINESS • NOVEMBER 2014 Rising Stars_Layout 1 10/29/14 12:12 PM Page 2
THE RISING STAR RECEPTION
(L-R): John Dmytriw, Index Fresh; Jorge Inestroza, (L-R): Shreenivas Shellikeri, Loblaws; Ben Alviano, Mann Packing; Peppe Bonfiglio of Sunset Tenalu; Julia Inestroza, Gourmet Trading Company Chelsea Mascari, Indianapolis Fruit
(L-R): Jamie Bowen, Idaho Potato Commission; Chris Wada, Wada Farms Marketing Group (L-R): Kenny Mills, Justin Fisher, Amanda Newhard, Yuichi Shirakashi of House Foods America Corp.
(L-R): Eric Halverson and Yvette Halverson of Black Gold Farms
(L-R): Jamie Sells of Del Monte Fresh Produce and Roger Schroeder of Stater Bros. (L-R): Kelly Jacob, Pro*Act; John Toner, United Fresh; Ryan Easter and Kaci Komstadius of Sage Fruit Co.
(L-R): Traci Hiebert and Alejandra Munoz of Idaho Potato Commission (L-R): Kyle LeStrange, To-Jo Mushrooms; Peter Wilder, To-Jo Mush- (L-R): Chetan Tiwari, United Fresh Produce Association; rooms; Meg Miller, Produce Marketing Association; Mike O’Brien, Lori Taylor, Indianapolis Fruit Company; Angela Tiwari, Schnuck Markets; Kevin Delaney and John Cunningham United Fresh Produce Association of To-Jo Mushrooms
(L-R): Veronika Adam of USA Farm Fresh and (L-R): Albert Wada and Christine Wada (L-R): Rachel Montoya, Erik Sambrailo, Jennifer Evan, Sara Mailhot, Gary Caloroso of The Giumarra Companies of Wada Farms Marketing Group Salvador Hernandez Betancourt of Sambrailo Packaging
NOVEMBER 2014 • PRODUCE BUSINESS 13 Rising Stars_Layout 1 10/29/14 12:15 PM Page 3
THE RISING STAR RECEPTION
(L-R): Laurie Foster and Boyd Foster of Idaho Potato Commission; (L-R): Martin Britz of Sunwest Fruit Company (L-R): Jesse Sepulveda and Dan Lawton David Fraser, United States Potato Board; Andrew Fraser, and Josh Logsdon of Giro Pack, Inc. of Vision Produce Co. student at Purdue University
(L-R): Mitch Brinks, Russell Comport, Jim Prevor of PRODUCE BUSINESS Don Armock of Riveridge Produce (L-R): David Morgan and John Marlow of Mann Packing Co.
(L-R): Monica Cordero, Gold Coast Packing, Inc.; Jeff Lundberg, Chris (L-R): John Shaw, Kevin Hicks, Kori Tuggle, Brian Scattini, Wyatt Maker, Cordero of Babé Farms; Brent Scattini, Gold Coast Packing, Inc.; Ande Brian Hawes, Mary Catherine Langford, Ty Schurman of Ocean Mist Farms Manos of Babé Farms; Terry Kuhel, Gold Coast Packing
(L-R): Allen Vangelos, Naturipe Farms; Chris Vangelos, A.R. Arena Products Inc.; Dick Spezzano, Spezzano Consulting Service; Neil (L-R): Caitlin Tierney and Edgar Ruiz (L-R): Ian Bessell and Kelly Green of Birko; Millman and Jim Provost of I Love Produce Miranda of Bayer CropScience Amber Kosinsky of Wish Farms
14 PRODUCE BUSINESS • NOVEMBER 2014 Direct Source_Ad 10/10/14 12:15 PM Page 1 Grapevine_Layout 1 10/23/14 10:21 PM Page 1
United Fresh Examines Reproposals For FSMA
By Dr. David Gombas, senior VP, food safety and technology; Julie Manes, director, government relations
he long process of implementing the As everyone in the produce industry Food Safety Modernization Act T(FSMA) reached a key point recently knows, food safety can make or break a when the Food and Drug Administration business, so there is a significant number (FDA) issued supplementary proposals for four draft rules. The supplementary proposals, of issues in the reproposals that we’ll be which make changes to certain sections of the closely examining. previous proposed rules, cover produce safety, preventive controls for human food, preventive controls for animal feed and foreign supplier verification rules. These “reproposals” were published in the Federal Register on September 29 and will be open for public comment for 75 days with a deadline of December 15. The public is welcome to review and comment on the reproposals. United Fresh is continuing to assess the revamped rules for their impact on the fresh produce industry. As everyone in the produce industry knows, food safety can make or break a business, so there is a significant number of issues in the reproposals that we’ll be closely examining. They include, but are not limited to: • Revision of the testing frequencies for Michael Taylor, the deputy commissioner for water sources used in-field Foods and Veterinary Medicine with the FDA • The definition of a farm speaks about the FSMA reproposals at this • Product testing year’s United Fresh Washington Conference. • Mandating of supplier approval programs rule, Preventive Controls and the Foreign proposals. A recording of the webinar can be These are just a few of the aspects of Supplier program met throughout the month found at UnitedFresh.org/FSMA. On updates to the proposed rules that will require of October. In the course of each of their November 13, the FDA will host a public thorough analysis as we prepare to comment discussions, the working groups examined each meeting in College Park, MD. United Fresh on the proposed changes. In order to do that, of the reproposals in detail — assessing how the will share information on the meeting as it United is undertaking a comprehensive proposed rule would impact the produce becomes available. approach that will foster the kind of close industry in negative or helpful ways. The results United Fresh briefed congressional staff examination needed as we prepare comments of those conversations will form the basis of about the supplementary proposals and will on the supplementary proposals. United Fresh’s comments. continue to keep key congressional offices up We formed working groups consisting of Members of the produce industry should to speed regarding our examination process industry experts and stakeholders who will be also be aware that the FDA is undertaking as well as our final comments. We will also focusing on each of the reproposals separately. efforts to provide additional information on continue to advocate for food safety policy The United Fresh working group on the their supplementary proposals. On October that is science-based and does everything Produce Rule met in early October, and the 6, the FDA joined with United Fresh for a possible to protect consumers and maintain remaining working groups on the Animal Feed webinar that reviewed the supplementary produce providers’ business viability.
16 PRODUCE BUSINESS • NOVEMBER 2014 Pom Wonderful_Ad 10/10/14 12:34 PM Page 1 Jim's Column_Layout 1 11/5/14 4:08 PM Page 1
THE FRUITS OF THOUGHT
THE INDEPENDENT OPPORTUNITY
By James Prevor President & Editor-in-Chief
here was a time, not too long ago, pendent retailing is bright, the produce industry is doing a rather Twhen America had no national super- poor job of supporting this customer segment — which is another market chains. Wal-Mart’s rollout way of saying the produce industry is not taking advantage of the across America changed that. Beyond Wal- independent opportunity. Mart, though, the fragmentation of retailing On the first week in December, many in the industry gather in into specialized types clearly opened the Manhattan for The New York Produce Show and Conference. One of door for national chains of all types — the shocking things that happens there is that shippers talk to retailers; Costco as a national warehouse club chain; the shipper finds out that the retailer has been selling their produce Whole for years, and the shipper never Foods as a national health knew it! retailer; Trader Joe’s as a national The shippers couldn’t service epicurean play; Aldi as a national The produce industry is doing a these accounts directly, and the discounter. rather poor job of supporting this retailers have good reasons for In some cases, these stores buying from service wholesalers don’t have the footprint that a customer segment — which is or terminal markets, but these true national classification another way of saying the produce independents could benefit from would require, but it seems to be industry is not taking advantage of promotional support. Indeed, the way the market is going. these players will actually use the These chains have lots of the independent opportunity. Point-of-Purchase material that advantages in expertise, capital, most chains simply throw away. procurement, etc., but for every Yet the same producers and action there is a reaction, and the associations that offer large homogenization of national chains will create an umbrella in which chains substantial promotional assistance just ignore the independent local retailing can thrive. This can be a farmers market, a CSA, an sector. The reasons are clear: independent supermarket chain, a single-unit operator and a panoply l It is a difficult sector to gain transparency. of ethnic specialists. l It is easier to go meet with one chain that can order its stores to Indeed this issue’s cover story, which deals with the renaissance of do a promotion than to meet with a wholesaler who has to independents, profiles this trend. But we would actually go a step persuade his customers to participate. further. Most of the experts quoted in the article urge independents l Limited staff resources can seemingly get a bigger bang for the to avoid trying to price against the big chains, pointing out that these buck by going after the highest volume players. giants can buy in bulk, and it will be difficult for independents to beat l Some of the ethnic retailers require non-English fluency to work the chains at this game. That is probably sound advice for groceries, with productively. but it is not true at all in fresh produce. These things are all true, but they don’t change the fact that there You can’t say that Wal-Mart, Costco, Kroger, Safeway/ is an enormous opportunity, and the very difficulty of reaching out Albertson’s/Publix, etc., are all buying below the market — they are to independents creates a larger prize for those who dare to make a the market. difference in this field. Some independent retailers will become part of a co-op, such as How to coordinate with wholesalers and distributors; how to reach Wakefern, or they will team up with large wholesalers, such as Super- out to retailers with diverse store sizes and customer types . . . none valu or C&S, and they can buy as cheaply as big retailers. Lots of of this will be easy. But as independents grow, and as shippers find ethnic retailers buy off local terminal markets, and by being flexible, their options with national retail chains are more limited, there will they can often buy under the FOB plus freight. be a natural meeting of the minds. These ethnic independents are especially dangerous to competitors The retailers want to sell more produce, the wholesalers and in fresh produce. They often have a sharp focus on one ethnicity as a distributors want to sell more produce, and the grower/shippers want clientele, so the groceries are often brands that wouldn’t appeal to a to sell more produce. The opportunities to creatively do new things typical shopper, but the produce can appeal to anyone. are constrained at giant national retailers, so those grower/shippers Independents of all sorts can be quicker to change procurement looking for opportunity will gravitate to the independent sector. strategies, flexible when integrating rapidly changing procurement It is very hard for a big chain to compete with a great independent, strategies with merchandising and marketing, and better at acquiring so it is in the interest of the produce trade to keep a diverse customer that “local” halo than national chains. Yet while the future of inde- base by helping independents grow. pb
18 PRODUCE BUSINESS • NOVEMBER 2014 Mann Packing_Ad 10/22/14 4:15 PM Page 1 Perspective & Analysis_Layout 1 11/4/14 2:21 PM Page 1
RESEARCH PERSPECTIVE Fruit Is In Top 3 UK Kids’ Snacks
BY KIRSTY NOLAN, ANALYST WITH CANADEAN
recent online panel owned by Parents Worry About successfully, it must be remembered that ACanadean that is used for Kids Snacking Habits health is key, closely followed by conven- customized consumer research — Parents across the U.K. are increasingly ience. As much as parents want their both as a service for businesses and for our concerned with their children’s snacking children to eat healthfully, a snacking occa- own in-house research — surveyed 506 habits, which is not surprising given the sion must remain convenient from the parents with children aged 16 or under. It media attention surrounding the issue of perspective of both parent and child. revealed that 94 percent of the U.K.’s chil- rising childhood obesity levels. In the same Further, a product must taste good in order dren snack, and more than half do so on a survey, one in three parents expressed for it to be successful in the kid’s market. daily basis. concern regarding their child’s weight. Although an adult may consume a product Approximately 40 percent expressed for health reasons alone, this simply isn’t concern about snacking and overall the case among the youngest consumers. dietary habits, and more than half worry Marketers are faced with the task of whether their children are eating enough communicating a product’s health and fruits and vegetables. taste benefits in an already saturated marketplace. The purchasers of these Fresh and processed Snacking Market Rife products are mostly busy parents; these fruit snacks are on With Opportunities consumers do not have time to waste on The findings of the survey highlight a food shopping, so the message to them the rise in the U.K., number of opportunities for snacking needs to be loud and instantaneous. If as concerned companies. There is a definite need for a processed fruit product can still be healthy snacks for children. More parents classified as one of the recommended “5 parents want want to incorporate the “5 A Day,” which A Day,” then don’t be afraid to highlight healthier products is the generally accepted healthy daily this on the packaging and in the quantity of fruit and vegetable portions, marketing campaign, this extends to single for their kids. into their children’s diets. portions of fresh fruit. Parents want to be In its simplest form, this can be pack- able to quickly tally their child’s intake to aged fresh fruit, conveniently prepared ensure they are getting the nutrients they and packed in a bag ideal for lunch boxes require — why shouldn’t marketers make or on-the-go snacking. The Asda super- this task easier for them? market chain has an extensive private label range of children’s fruit products that appeal to parents because the pre-pack- There are approximately 12 million chil- aged fruit bags provide kids with one of Method: The data in this article is taken from an dren in the U.K., which equates to more the “5 A Day.” Processed options are also in-depth survey of the attitudes and consumption habits of 2,000 U.K. consumers. The survey was than 6 million snacking occasions every day. growing in popularity. Organix, a British conducted via Canadean’s Rewarded Opinions When asked what foods their children company specializing in baby and toddler panel, which has a reach of more than 100,000 respondents. The study was conducted between snack on, parents revealed fruit is the most foods, has a range of fruit snacking bars July 11 and July 14, 2014. Of the 2,000 respon- common snack among children, with 67 under its ‘Goodies’ brand. The label dents, 506 identified themselves as parents of children aged 16 and under. percent of children snacking on fruit, provides one of the recommended “5 A closely followed by crisps [potato chips] at Day,” while also promising to be 100 The Company: Canadean provides in-depth market research across the fast-moving consumer goods 65 percent. The remaining top spots were percent organic and containing no added (FMCG) sector, including food, packaging, ingredi- filled by biscuits [sweet cookies] (64 sugar, artificial flavors or colors. Along ents, soft drinks, beer, retail, foodservice, wines & spirits and cosmetics & toiletries. Canadean special- percent), chocolate (42 percent) and with the health benefits, parents also like izes in conducting online survey panels and confectionery (37 percent). Overall, health the extended shelf-life of processed fruit producing in-depth market insight country reports through qualitative and quantitative research. remains the key priority. When asked what products, as they can be stored more easily their children were most likely to snack on, than fresh fruit. The Author: Kirsty Nolan, an analyst with Canadean, assists FMCG companies in identifying emerging fruit is revealed as the overall snack of market trends and provides insight into the moti- choice with one in three children most likely What Does This vations behind consumer behavior. Working as an analyst for almost three years, Nolan has a wealth to snack on the natural, sweet treats in Mean For Marketers? of experience in report writing and detailed either packaged or unpackaged forms. To market child snacking products strategic analysis.
20 PRODUCE BUSINESS • NOVEMBER 2014 Perspective & Analysis_Layout 1 11/4/14 2:21 PM Page 2
COMMENTS & ANALYSIS Parental Guidance Suggested
BY JIM PREVOR, EDITOR-IN-CHIEF, PRODUCE BUSINESS
t is important to survey consumers inconsistent in taste, and many vegetables need to have efforts to condition taste Ibecause it gives us great insight into — especially the bitter green vegetables buds so that little children get used to their thought process, but it does not thought to be most important in eating kale or spinach. In other words, necessarily provide insight into behavior. promoting health — are often unap- maybe the whole notion that we are In this case, surveying parents about their pealing to children. supposed to get children to love everything children’s snacking habits inherently With the fresh-cut explosion, the has to be challenged. Maybe the adults creates a bias in response because most produce industry made great strides at have to tell children what is good for them, parents want to be perceived as good offering more convenient product. However, and then insist they eat it. parents. Since it is widely known that fresh product inherently is not as convenient produce is a healthier snack than other to store as, say, frozen product is to have options, asking parents what their chil- ready to make a smoothie, and many dren snack on is not a neutral question. It vegetables are really cooking ingredients. is virtually identical to asking the parent if It is interesting that the researchers they are good parents or not. place great emphasis on marketing items Put another way, one can ask a parent, as one of the recommended “5 A Day.” “When your child eats ice cream, does he When the “5 A Day” program was just prefer vanilla or chocolate?” Researchers getting started in California back in the Maybe the whole would probably get a reasonably accurate late 80s and early 90s, Barney McClure, response because the answer carries no who was the president at the San Fran- notion that we are moral weight. On the other hand, asking cisco, CA-based ad agency, McClure and supposed to get about children’s snacking habits can be Tjerandsen — and an important marketer perceived by the research subjects as such: for the produce industry — praised the children to love “Are you one of the lazy, negligent parents program for exactly that specificity. He everything has to who allows your children to eat all kinds of said, up to that time, everyone knew that junk, or are you one of the parents who produce was good for you but never had a be challenged. Maybe love their children enough to enforce specific guide as to behavior. the adults have to healthy standards and ensure fruits and With “5 A Day,” McClure thought there vegetables are the most common snack?” was a chance to really change behavior tell children what It would be fascinating to see this type because the guidance was now so specific. is good for them, of research tied in with actual purchase Though the U.K. stuck with the “5 A Day” data, such as receipts from supermarkets, concept, the U.S., abandoned the concept and then insist they so we can get an idea of how much back in 2007 to adopt a more conceptual eat it. parental opinion translates into food slogan, Fruit & Veggies: More Matters. So purchase data. It would be even more the specification of a given serving may not interesting to go a step further and study carry the same impact here in the states as actual consumption among children; after it does in the UK. all, parents often purchase fruits and Of course, the big question may be to vegetables and children pass them by. what degree marketing matters in selling Despite the positive interest in produce for kids. Certainly a good slogan, increasing produce consumption, Kirsty or perhaps a Sesame Street character Nolan, analyst for Canadean, also points as promoted in the new Eat Brighter! to important obstacles. She mentions program, can gain some initial attention It is not marketing, it is parenting; and interest in processed foods because they and even trial. But if the fundamentals of maybe the public-policy approach should be offer extended shelf-life, and she points the produce don’t appeal to the children, to persuade parents that they need to step out that “product must taste good in order and they don’t eat it, what are the odds of up and take responsibility for their children’s for it to be successful.” Providing consis- getting repeat purchases? diet. Serious parents, insisting children eat tent taste can be a problem for the fresh It makes one think that to really have a healthfully, might boost consumption more produce industry. Many fruit items are big impact on public health, we actually than any marketing campaign. pb
NOVEMBER 2014 • PRODUCE BUSINESS 21 Forward Thinking_Layout 1 10/31/14 11:52 AM Page 1
FORWARDTHINKING
NOVEMBER 2 - 5, 2014 Conference Venue: Omni Dallas Hotel at WESTERN GROWERS ANNUAL MEETING Park West, Dallas, TX Conference Venue: Bellagio Hotel, Las Vegas, NV Conference Management: Produce Marketing Conference Management:Western Growers Association, Newark, DE Association, Newport Beach, CA Phone: (302) 738-7100 • Fax: (302) 731-2409 Phone: (949) 863-1000 • Fax: (949) 863-9028 Email: [email protected] • Website: pma.com Email: [email protected] Website: wgannualmeeting.com JANUARY 21 - 23, 2015 CULINARY INSTITUTE OF AMERICA - NOVEMBER 5 - 6, 2014 WORLDS OF HEALTHY FLAVORS INTERNATIONAL PINEAPPLE LEADERSHIP RETREAT ORGANIZATION’S GLOBAL CONFERENCE Conference Venue: Culinary Institute of America at Conference Venue: DoubleTree by Hilton, Greystone, St. Helena, CA Hotel Carairi, San Jose, Costa Rica Conference Management: Culinary Institute of Conference Management: International Pineapple America, St. Helena, CA Organization, Winter Park, FL Phone: (707) 967-1100 Phone: (760) 643-1153 Email: [email protected] • Website: ciachef.edu Email: [email protected] • Website: ipineapple.org JANUARY 21 - 23, 2015 TPIE - TROPICAL PLANT INDUSTRY DECEMBER 2 - 4, 2014 EXPOSITION THE NEW YORK PRODUCE Conference Venue: Broward Convention Center, Fort SHOW AND CONFERENCE Lauderdale, FL Conference Venue: Jacob K. Javits Center Conference Management: Florida Nursery Growers & Conference Management: PRODUCE BUSINESS Landscape Association, Orlando, FL and Eastern Produce Council Phone: (407) 295-7994 Phone: (212) 426-2218 Email: [email protected] • Website: fngla.org Email: [email protected] Website: nyproduceshow.com JANUARY 25 - 27, 2015 SWEET POTATO CONVENTION DECEMBER 4 - 5, 2014 Conference Venue: Gaylord Opryland Resort, CONSUMER FOOD SAFETY Nashville, TN EDUCATION CONFERENCE Conference Management: Sweet Potato Council, Conference Venue: Crystal Gateway Marriott, Columbia, SC Arlington, VA Phone: (803) 788-7101 • Fax: (803) 788-7101 Conference Management: Partnership for Food Email: [email protected] Safety Education, Arlington, VA Website: sweetpotatousa.org Phone: (202) 220-0651 Email: [email protected] Website: teamfoodsafety.org/2014 FEBRUARY 4 - 6, 2015 FRUIT LOGISTICA 2015 Conference Venue: Berlin Exhibition Fairgrounds, JANUARY 7 - 9, 2015 Berlin, Germany POTATO EXPO 2015 Conference Management: Messe Berlin GmbH Conference Venue: Rosen Shingle Creek, Orlando, FL Phone: +49 (0) 30-3038-0 Conference Management: National Potato Council, Website: fruitlogistica.com Washington, D.C. Phone: (202) 682-9456 • Fax: (202) 682-0333 FEBRUARY 8 - 11, 2015 Email: [email protected] NATIONAL GROCERS ASSOCIATION’S SHOW Website: potato-expo.com Conference Venue: The Mirage, Las Vegas, NV Conference Management:National Grocers Association, JANUARY 8 - 11, 2015 Arlington, VA SE REGIONAL FRUIT & VEGETABLE Phone: (703) 516-0700 • Fax: (703) 516-0115 CONFERENCE Email: [email protected] Conference Venue: Savannah Int’l Trade and Website: nationalgrocers.org Convention Center, Savannah, GA Conference Management: Georgia Fruit & Vegetable FEBRUARY 11 - 14, 2015 Growers Association, LaGrange, GA BIOFACH 2015 Phone: (877) 994-3842 • Fax: (706) 883-8215 Conference Venue: Exhibition Centre Nuremberg, Email: [email protected] Nurnberg, Germany Website: gfvga.org Conference Management: NurnbergMesse GmbH, Nurnberg JANUARY 15 - 16, 2015 Phone: +49 (0) 9 11.86 06-89 96 UPPER MIDWEST REGIONAL FRUIT Website: biofach.com & VEGETABLE GROWERS CONFERENCE & TRADE SHOW FEBRUARY 16 - 19, 2015 Conference Venue: St. Cloud River’s Edge Convention NATIONAL WATERMELON CONVENTION Center, St. Cloud, MN 2015 Conference Management: Minnesota Fruit & Conference Venue: La Quinta Resort & Spa, Vegetable Growers Association, Ham Lake, MN LaQuinta, CA Phone: (763) 434-0400 Conference Management: National Watermelon Email: [email protected] • Website: mfvga.org Association, Inc., Lakeland, FL Phone: (863) 619-7575 • Fax: (863) 619-7577 JANUARY 21 - 23, 2015 Email: [email protected] PMA FIT LEADERSHIP SYMPOSIUM Website: nationalwatermelonassociation.com
To submit events to our Forward Thinking calendar, please email [email protected].
22 PRODUCE BUSINESS • NOVEMBER 2014 NYPS H 2014_3_Ad 10/10/14 4:23 PM Page 1 Pundit_Layout 1 10/29/14 12:31 PM Page 1
World Union Of Wholesale Markets And The Food And Agriculture Organization Unite To Identify Best Practices For Markets And Food Distribution
FROM JIM PREVOR’S PERISHABLE PUNDIT 10.16.2014 aria Cavit, secretary general, we are also a nonprofit association that can ices and facilities they need to be more effi- World Union of Wholesale Mar- take part in this project without the influ- cient and competitive. This has already been Mkets (WUMM), based at The ence of economic interest. One of the main achieved by many wholesale markets in, for Hague in the Netherlands, recently sent the aims of WUWM is to ensure an exchange example, Europe and North America — Pundit a note: of information and experience exists in what we would call the “third-generation The Food and Agriculture Organiza- order to improve the management of food wholesale markets”. In other parts of the tion of the United Nations (FAO) and wholesale and retail markets everywhere. world, especially Latin America and Asia, the World Union of Wholesale Mar- food markets are taking very significant kets (WUWM) have agreed to collabo- Q: How will the collaboration work ex- steps forward. rate to identify and disseminate actly? Is this effort unique in breadth and It is important that the management of interesting good practices and lessons scope as well as in the context of other wholesale markets, as with those of any learnt in any country on improvements projects undertaken thus far? company (either private or state-owned), in food distribution infrastructure (as- A: This is a unique collaborative oppor- know exactly where they want to be, hav- sembly, wholesale, retail including tunity, and we hope to carry out more of ing identified their goals for the mid- and storage) of any size in urban and peri- this type of joint initiative in the future, es- long-term. Market management that keeps urban areas. pecially with some of the aims of the FAO clear its aims needs to formulate a strategic WUWM and FAO are interested in and the WUWM being so very similar. plan in a systematic, organized and priori- learning about a wide range of good WUWM is open to collaboration with all tized way, and many of these good practices practices and lessons learnt related to multilateral and international institutions and learnt lessons will support those efforts. improvements in wholesale and retail sharing this common interest. Indeed, this markets as well as food storage facili- project also involves the Sustainable Society Q: Can you provide examples of press- ties: new infrastructure, relocations, as Network (Imperial College London). ing issues that you believe need to be ur- well as approaches to solve opera- The modus operandi is very simple: the gently addressed? Do you have any tional and logistic constraints, integra- project partners will help to identify the best notable stories to illustrate the value of tion of small farmers, facilitated access practices and lessons learnt by market man- pursuing this project? by consumers, improved compliance agement the world over. Those submissions A: There is a series of key points that with rules and regulations, provision of of best practice will be reviewed by an edi- should be the priority of every market man- better services, adoption of new tech- torial board, and then each will contribute ager: food safety and hygiene; the trans- nology, etc. towards the presentation and eventual dis- parency of the market in the sense of It sounded like a most interesting proj- semination of the results, aimed to be a generating competition among the whole- ect, so we asked Pundit investigator and publication of good value to markets the sale operators themselves — and also be- special projects editor Mira Slott to find out world over. tween the traditional retail sector and the more, and Maria suggested we speak with big chains of retail distribution (referring al- Manuel Estrada-Nora, chairman of World Q: What and where are the biggest ways to fresh product). Union of Wholesale Markets (WUWM). areas of concern you are bent on tackling? Another aspect is to guarantee internal WUWM raised a broad range of complex safety inside the market. But this aspect, Q: Issues you’re addressing sound chal- issues in wholesale and retail markets as while being important, is not on its own suf- lenging, complex and far-reaching. Was well as food storage facilities: new infra- ficient. The market must be organized in an there a particular trigger that pushed the structure, relocations, approaches to solve efficient way, so that there can be a reduc- project forward? operational and logistic constraints, inte- tion in operational costs as well as a mini- A: The initial idea was borne in the FAO, gration of small farmers, facilitated access mization in food loss and waste. This latter conscious of the importance of having effi- by consumers, improved compliance with part is one of the great worries of the pres- cient fresh food markets that confront the rules and regulations, provision of better ent time (an FAO report published in 2011 challenge to bring safe, sanitary, healthy services, adoption of new technology, etc. estimated global food loss and waste as and widely accessible food to both local, na- A: You mention a number of aspects that being one-third of the food produced for tional and international markets in an effi- are very important to turn traditional whole- human consumption in mass, or one-quar- cient and sustainable manner. sale markets into real logistical food centers. ter as measured in calories). Food wholesale For a project like this, FAO approached The companies that operate in one way or and retail markets can effectively contribute WUWM with which it has had a long-last- another on such food centers (wholesalers, to reducing this amount. ing relationship. WUWM has a market retailers, export-import companies, catering, On the other hand, wholesale market membership spanning five continents, but restaurants suppliers, etc.) have all the serv- management must be conscious that a large
24 PRODUCE BUSINESS • NOVEMBER 2014 Paramount Citrus A2_Ad 10/10/14 12:30 PM Page 1 Pundit_Layout 1 10/29/14 12:32 PM Page 2
FROM JIM PREVOR’S PERISHABLE PUNDIT 10.16.2014
number of small and medium enterprises would like that both the market authorities present treating these questions of proce- are born (and grow-up) in their premises and its management (as well as local plan- dure together with the FAO. The network and facilities. Studies show how market de- ners) have the opportunity to benefit from contacts of WUWM are very wide and not velopment can be a good tool for generat- the experiences, solutions and ideas under- only consist of our market membership, but ing employment of youth as well as ethnic taken in other markets of the world. also other markets, institutions, experts, minorities. Food markets are “incubators” There is a need to strengthen links be- journalists, professors and professionals with of companies and, because of that, all these tween market infrastructure and territorial whom we keep contact. good practices and learnt lessons may also planning at urban, provincial and metropol- be seen to contribute to facilitating the op- itan levels. Q: How can U.S. produce industry ex- erative and ongoing development of these ecutives be most helpful in bringing your companies. Q: How challenging is it to get man- mission to fruition? In addition to partici- agers of wholesale or retail markets to pro- pating in the Questionnaire, what other Q: Are you targeting particular coun- vide meaningful information in the ways can produce industry executives get tries/areas or designating more efforts in WUWM-FAO Questionnaire? involved? certain locations due to need? A: Of course, the challenge is to obtain A: Traders and food industry executives A: I believe that networking and bench- as many answers as possible, and with most are the real clients of food logistic and com- marking will generate interesting ideas for illustrative and explanatory content possi- mercial complexes. Because of that, it is vital food markets whatever their socio-eco- ble. We all know that statistically a ques- that the owners and management of these nomic environment or level of develop- tionnaire is never answered by 100 percent food centers understand well their clients — ment. We could certainly say that those of addressees. Because of that, we want to their needs, objectives and achievements. In food markets in the worst of conditions, and transmit to food market managers the im- this way, market managers are “client-ori- with major problems, would be the ones to portance of this initiative, which we pro- entated,” to the mutual benefit of both the profit most from an initiative like this. Nev- moted at our conference recently held in management of the market, as well as the ertheless, for more than 20 years, I have vis- London. We mailed to both members as food industry/trade. ited many food markets worldwide, and I well as to non-member markets. The FAO *** can say that in every visit to a wholesale or has also disseminated the questionnaire to Our sense is that rising urban land val- retail market, I have learned something market contacts in its network. An editorial ues are putting markets around the world valuable or new. board comprising the project partners will under pressure. This is because the cost of ultimately determine those best practices building a market or of not selling a market Q: Could you share some insights? worthy of further attention. is obvious and quantifiable, whereas the A: It is clear that the problems facing benefits are difficult to quantify. food markets may vary according to the Q: Will you be incorporating the On the one hand, wholesale markets level of development of the country, their WUWM concept of “Think Global & Act are the distribution centers for independ- physical location, as well as the amount and Local” with regional working groups to ent retailers and restaurants in major cities. nature of the food products they handle disseminate the information and help exe- These are the institutions that fill cities daily. For example, in some wholesale mar- cute solutions? with life and interest and serve as portals kets in Central America, child labor can be a A: It is true that the food industry is glob- for countless immigrants to begin a jour- real problem, while in some European mar- alized and that the international trade of ney upward in society. kets the problem could be the quality and fresh fruits and vegetables is very important. On the other hand, these markets are cost of the telecommunications network. As But it is also true that traditional wholesale what make fruit and vegetable production WUWM has many members from varying and retail markets are very linked to the possible. Supermarkets or multiples are a socio-economic environments, I consider local or national food production, to the much-prized market, but they only buy our participation in this project to be both growers markets, and to the culture and what they want – certain sizes, certain vital and beneficial for the project, provid- local customs. grades, certain varieties. The wholesale mar- ing access to information from an interest- Due to the diversity of social and eco- ket merchant is distinct as he sees himself as ing, diverse and varied membership. nomic contexts, the WUWM has several re- the agent for the producer and thus under- gional working groups (Europe, Latin takes to help the producer sell what he Q: With so many variables involved, America, Asia-Pacific) so that the markets in needs to sell, the unusual variety, the off such as economic and political obstacles, these zones of the world may work more in- size, the imperfect grade. All over the world, how complicated will it be to instigate tensively on issues of common concern or the ability and willingness of market traders these changes? interest. This allows for the implementation to help growers in this way provide the cru- A: The exchange of information, ongo- of appropriate ideas or solutions and, yes, cial margin that keeps growers profitable. ing communication, and ensuring an eager- “to act locally.” This project has the potential to help ness exists to take advantage of good ideas markets thrive, and anything that does and experiences of third parties is a natural Q: How will this information be com- that is good not just for market traders but way of introducing good practice and learnt piled and disseminated to maximize its for cities needing life and rural areas need- lessons. In WUWM, we do not have the usefulness through varied supply chains? ing customers. We wish the WUWM and power to impose, but we do have an op- A: A comprehensive publication will be the FAO the very greatest of success in portunity to make recommendations. We the final product of this project. We are at their collaboration.
26 PRODUCE BUSINESS • NOVEMBER 2014 Coverstory_Layout 1 10/29/14 11:48 AM Page 1
Independent Stores Thrive With Smart Produce Strategies Service, quality and flexibility allow sole proprietors to take on a unique role in retail. BY BOB JOHNSON
PHOTOS COURTESY OF UNIFIED GROCERS
ven in the age of consolidation and differentiation in are healthy as ever and are actually growing. the market with a plethora of alternative retail outlets, “Recent PricewaterhouseCoopers analysis of the industry shows independent stores and small chains continue to thrive. the independent channel is growing — especially where they have a “Last year the National Grocers Association unique service model,” says Larkin. conducted the first economic impact study of the inde- The proposed merger of Safeway and Albertson’s, along with Wal- pendent sector, and we found that independent grocers account for Mart, Kroger and Publix, would create a produce retailers’ “big four,” 25 percent of supermarket industry sales,” says Peter Larkin, pres- which represents more than 40 percent of sales nationwide, identE of the Arlington, VA-based National Grocers Association (NGA). according to U.S. Department of Agriculture research. There is reason to believe that, even as the big get bigger, the The Top 4 only accounted for 16 percent of produce sales before independents — defined by the NGA as privately-owned or a previous wave of mergers and acquisitions in the late 1990s. Then controlled food retail companies — recovered from the recession, Albertson’s (No. 4) merged with American Stores (No. 2) to create a
NOVEMBER 2014 • PRODUCE BUSINESS 27 Coverstory_Layout 1 10/23/14 10:07 PM Page 2
nationwide chain; former No. 1 Kroger eastern retailer Harris Teeter for $2.4 billion, support tools for retail grocers, found in the acquired No. 6 Fred Meyer; and Wal-Mart Cerberus Capital Management’s purchase of survey they conducted for the National seized the top spot with meteoric growth of five chains including Albertson’s, and Grocers Association that 2012 was a its super stores. Spartan Stores purchase of commissary bounce-back year for most independent The latest merger season included, outlet Nash Finch. stores. before the proposed Safeway-Albertsons But FMS Inc. of Pasadena, MD, which Many independent grocers improved their merger, Kroger’s 2013 purchase of South- turns accounting information into decision performance compared with the prior year. FOOD MARKETING INSTITUTE’S VICE PRESIDENT OF FRESH FOODS, RICK STEIN, DISCUSSES PLANS FOR NEWLY CREATED POSITION Interview conducted by Bob Johnson
his June, the Food Marketing Insti- PB: So far, there is an impressive list of tute (FMI) chose its first vice FMI members who are on the Fresh Foods Tpresident for fresh foods, Rick Executive Council, including an executive Stein, previously vice president of retail from Giant Eagle as chairman, and top merchandising and marketing execution executives from Affiliated Foods, Publix, for Safeway, where he led marketing AWG, Harris Teeter, Longo Brothers Fruit activities for the company’s Eastern Divi- Markets, Wakefern Food Corporation, sion — spanning 180 locations and Heinen’s, Hy-Vee, Lowes Foods, Bozzuto’s Rick Stein 20,000 employees. Stein began his career and Wegmans. Have you already identi- at the retail store level, and in his 30- is the senior vice president of perish- fied any key issues that are on the front plus-year tenure at Safeway, he rose ables, quite often that senior vice burner of discussion when you meet and through the ranks serving in both divi- president doesn’t attend all the other conference with each other? sional and corporate roles. industry events. Often when the repre- Stein: We’ll focus on trends in Fresh, sentative gets back, he or she tries to especially as it pertains to the Food PB: FMI has generally been known as monetize the trip in terms of how it will Safety Modernization Act. We’re going to an association representing supermarket increase sales in their area. I will be provide information on the menu labeling chief executives and their overall attending all those events and hope to that is going to be required for prepared concerns of retail operations. Though round out the description. fresh foods. I have been involved with the Perishables is an important component of Produce Traceability Initiative, and that is a supermarket’s success, many believe PB: Please tell our readers a little an ongoing important issue. I think Food Marketing Institute has concentrated about yourself and what you will be sustainability is another very big issue. mainly on other parts of the store and doing at FMI. What insights did you learn has encouraged its members seeking about Produce when you were at PB: How will your work be conveyed Fresh solutions to engage with specific Safeway? upward to chief executives? associations in the perishables arenas, Stein: When I was at Safeway, produce Stein: Many of the executives on our such as the Produce Marketing Associa- was a primary point of differentiation. board will be meeting four times a year. tion, United Fresh and International Consumer surveys showed that, after store We also have a micro website for fresh Dairy-Deli-Bakery Association. Why is FMI location, produce is up there in the Top 2 foods, and we’ll have white papers. now emphasizing Fresh? or 3 reasons for choosing a store. Safeway Stein: FMI probably had a larger had a big emphasis on Fresh, especially PB: Will there be any working docu- concentration on the center of the store, on produce quality and presentation. I’ve ments or tools produced from your work but we’re going to be looking aisle by had tremendous research resources at that will guide FMI’s board in doing more aisle, because the revenue in the super- Safeway. Not all of our members have things to help the overall Perishables market comes from the entire store. The those resources, and I hope to bring arena? total store initiative is an important early insights I learned from them. Stein: I’m working on an agreement to project, and private brands and fresh do a study on fresh prepared foods. One foods will be a huge point of differentia- PB: What is your plan for building the of the highest priorities is food safety. The tion among supermarkets. Fresh Foods Executive Council at FMI, and Food Safety Modernization Act rules on how can produce industry leaders get fresh prepared foods are open for PB: How will FMI avoid duplication involved? comment now, and we will keep members with other Perishables associations? Stein: We had success recruiting some informed so they can begin to prepare Stein: I think we can work with the top executives on this council. We hope themselves for those final rules when other associations. If one of our members to help them with emerging issues. they go into affect next year.
28 PRODUCE BUSINESS • NOVEMBER 2014 Katsman_Ad 10/29/14 1:15 PM Page 1
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First, as a group, independents managed to grow sales in the complex marketplace, and second, significantly fewer posted sales losses, according to their 2013 Inde- pendent Grocers Financial Survey. The Survey also reports the 2012 fiscal year was a turning point for many independents with net profits bottoming out in 2011 following their multi-year negative slide. The 2012 net profit before taxes among inde- pendent grocers improved. The independent grocery sector is accountable for close to 1 percent of the nation’s overall economy and is responsible for generating $129.5 billion in sales, 944,000 jobs, $30 billion in wages, and $27 billion in taxes, according to FMS statistics. Independents are holding their own — not by trying to compete with Wal-Mart on price, but by offering service, quality and a unique ability to respond to changing needs in their Member-owned Unified Grocers supplies independent communities. stores with marketing help, business services (including “The independent operators don’t have to PHOTO COURTESY OF UNIFIED GROCERS insurance), and grocery items (including its Western Family, follow a script dictated by a home office Springfield, IGA and Natural Directions Organic brands). hundreds, maybe thousands, of miles away,” says Rick Stein, vice president for fresh foods Safeway,” says Smallwood. “We compete on OR. “All of these items together now make at the Food Marketing Institute (FMI), customer service, and on being on top of our the retailer’s operation a destination rather Arlington, VA. “They can find inspiration in the cases to make sure everything looks good.” than just another supermarket. Customers community in which they serve. They can visit With this service-oriented approach, who feel appreciated and taken care of competition and farmers markets to discuss Okie’s continued to enjoy growth even during often endear themselves to those stores what they are seeing with their very own the recession. and will go a little further out of their way to customers. Then they can implement what “We had one year, three years ago, when shop them.” they determine is worthwhile on the spot.” we were level, but our numbers have been Member-owned Unified Grocers supplies getting stronger every year for 10 years,” independent stores with marketing help, Service Breeds Loyalty says Smallwood. business services (including insurance), and In the small Washington coastal town of Okie’s Thriftway may be uniquely posi- grocery items (including its Western Family, Ocean Park, there is only one produce tioned for intimate customer relations, but Springfield, IGA and Natural Directions market serving the local community. many independent stores enjoy strong ties Organic brands). “We don’t have anybody big within 35 with the communities they serve. “At Unified, we have a saying that ‘Our job miles of us,” says Dwayne Smallwood, “Independent operators have familiar, [as a supplier partner] is not complete until produce manager at Okie’s Thriftway Market, strong relationships with their customers,” the product goes into the bag at the register.’ Ocean Park, WA. “There’s a Fred Meyer, a says FMI’s Stein. “That relationship can Independent retailers need to take the same Safeway, and a Costco about that far away. create loyalty and help reduce the lost sales stance in regard to their customer,” says Most of our business is summer-oriented from fragmentation. The key for the inde- Swartz. “They should do what they can to tourist trade, and we seem to have good pendent operator is to maintain quality educate the retail customer as much as customer loyalty within the community. There above all else and capitalize on their service- possible on how to use the items they is only one other local store with a little oriented relationship with the consumer. purchase. Chuck’s Produce [an independent produce and a lot of other things.” Notably, a strong dialogue with the customer and local family-owned company based in There are around 3,500 permanent resi- equates to loyalty.” Vancouver, WA] holds cooking demonstration dents within 20 miles of the store, although This dialogue begins on the produce classes to help educate customers on how a far larger number visits this seaside department’s floor with conversations to use and prepare items found in their community during the summer, and its between customers and knowledgeable produce departments. New Seasons Market produce store offers a level of service remi- staffers, who aim to please. [a grocer out of Portland, OR] has tastings niscent of Mayberry, NC, the fictional bucolic “Customers are always looking for every weekend set up to greet shoppers town in The Andy Griffith Show. something different, but they need help to upon entry to let them sample new and “If a customer wants something, we learn how to prepare it as well, which leads seasonal items.” special order and do everything we can to get to another important piece — an educated, Swartz believes competitiveness begins it. When it comes in, I call them. I don’t think courteous staff,” says Dave Swartz, director by offering more than just a place to buy you would get that service from Wal-Mart or of produce at Unified Grocers, Portland, food. “The key is for independents to make
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Produce an experience within your store, not and business services to more than 200 to offer local produce by developing rela- just a department,” says Swartz. independent stores in Mississippi, Louisiana tions with a network of area farmers, and it This strategy kept some relatively high- and Texas. is with the fresh items, in particular, that end independent stores humming during the “The success of independents varies there are inherent opportunities to impress darkest days of the recession. “Our from area to area,” says Campbell. “In our with quality. customers were still shopping during the area, we have strong independents. They are “Thirty-eight percent of consumers iden- recession,” says Rosemarie Pacheco, well known for having quality produce, meats tify ‘the quality of fresh foods’ as a reason marketing coordinator at Grace’s Market- and deli. The consumer is more aware than they will bypass one food retailer and shop place, New York, NY. “During the recession, many people think. Better quality is usually at one further away, according to the U.S. not a lot of people were throwing thousand- better looking.” Grocery Shopper Trends 2014,” says FMI’s dollar parties, but we weren’t hurt on the Independent markets are also generally Stein. staple items.” better positioned than the national chains Among the fresh departments, produce Over the past 30 years, Grace’s Market- place built a loyal clientele looking for quality produce at its two markets in Manhattan and Long Island, its restaurant, and a vibrant catering business. Vic Savanello, director of produce and floral for Iselin, NJ-based Allegiance Retail Services — a retailer-owned co-op that provides marketing assets, resources, and services to independent retailers — says the most important thing about an independent retailer and the power of the independent supermarket owner is “being able to service customers like a mom and pop corner store.” That description translates into an owner who literally knows what the customers want and is not an absentee-owner. “People will shop at an independent store because it provides customers with a diverse array of products the community needs,” says Savanello. “When you go into an Allegiance supported-store (Foodtown, D’Agostino, etc.) you know exactly what type of customers the store caters to by the marketing, merchandising and product mixes.” [See related article on PSK Food- town on page 36.]
Quality Counts The experience most likely to keep consumers coming back is finding quality that is a cut above the economy-oriented giants. “Our customers know when they come here that we stand behind our produce,” says Pacheco. “They know they’re not going to take produce home and have it go bad.” Some of the consolidated suppliers who aim to bring the advantages of volume buying to independent operation also emphasize quality first. “We focus on getting quality. We’ll match our quality with anyone,” says Jay Campbell, chief executive of Associated Grocers, Baton Rouge, LA. “We buy from coast to coast and get good quality for the best price.” Associated supplies produce, groceries
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plays a particularly strong role in creating an The independents have a built-in advan- identity and generating sales. tage over national chains when it comes to “Produce sales account for more than 30 developing a supply of produce from local percent of the supermarket dollar coming farmers. from all fresh departments, according to the “Charlie’s Produce does an excellent job Nielson Perishables Group Fresh Facts, of promoting local produce and the new, 2013,” says Stein. “In our Power of Produce larger Portland facility gives them much survey that we presented at FMI Connect in more room to grow both their organic and June, it’s clear that produce is a planned local produce programs,” says Swartz. “Nor purchase for the majority of shoppers. In the Cal Produce in West Sacramento is another survey, we found that ‘pre-tailing,’ or influ- partner of Unified that is seeing excellent encing the planners early on, will lead to growth in both organic and locally sourced better sales.” produce. In a recent tour of their facility, I was Quality and variety in the produce depart- surprised by the number of items they had ment attracts and keeps customers for on hand both in organic and local produce.” independent markets. “In attracting new customers with produce, stores have to Economics present the best possible quality they can. One place where independent stores are That is where it all starts,” says Unified at a distinct disadvantage is in the area of Grocers’ Swartz. “If the quality on the shelf economics. Large, consolidated retailers are is not good, people will shop elsewhere. able to negotiate deals with behometh Having a wide array of produce items to suppliers for razor-thin margins that also choose from is the attraction.” yield logistical efficiencies. Some independent stores carve out “There are certain items where our prices unique identities by offering special varieties are in line, but we don’t buy pallets of apples, of mainstream fruits and vegetables. “Inde- strawberries or bananas, so we can’t get pendents can have more specialties in their down to the same price as the chains,” says stores than some of the big chains,” says Pacheco from Grace’s Marketplace. “We try Damon Francis, senior category manager of to sell the best produce we can, but we never produce at Elk Grove Village, IL-based Topco gouge our customers.” Associates — a member-owned company Because the largest chains have that supplies a full range of produce, grocery unmatched economies of scale, low price is and meat products to independent stores. not the best strategy for the independents. “Instead of just having a red, green and black “It’s hard,” confesses Reed from Harry’s seedless grape, they can also carry a Scarlet Supermarket. “I try to maintain fair prices, Royal, or Sweet Celebrity, or a Magenta. but I cannot give items away like the chains They’re all Red seedless, but you can show can. They might order thousands of an item, the consumer the possibilities. There’s also and I’m ordering 10.” Cotton Candy or Pristine Green Seedless. Independents do best to concentrate on “Independents can be creative in their offering better service or better produce, displays,” adds Francis. “It depends on the rather than the lowest prices. “It’s a mistake demographics where they are. We know to try to compete on price, but quality will some of them are creative in their displays, always sell, and sometimes the big guys try like with little bin displays using high graphic to go down the middle and miss on quality,” walls. However, you can spruce up the says Topco’s Francis. department to attract consumers. Sampling But there are important ways the inde- is also an excellent way to create some pendents, without trying to compete on price, excitement.” hold the line on the differential. Most inde- There are two areas, in particular, in pendent stores operate on small margins — which consumers are looking for markets to the FMS survey found the average profit take a step up with their produce. “Two big margin in 2012 to be just 1.65 percent. factors that we continue to see rise in the The suppliers to the independents, many past year are expansion of both local of them cooperatives, are also able to mini- produce and organic produce,” says Swartz. mize the cost advantage of the giant chains. “Product mix of conventional versus organic “The independents can compete very effec- is drawing closer together, and in stores like tively,” says Campbell of Associated Grocers. Oregon-based Market of Choice, Zupans, “In the case of our customers, many of them and New Seasons Market, we see the mix independent or family-owned, they compete being among the highest in the region.” through cooperative buying. We are buying
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cooperatively for them.” Because of their relationships, the inde- This flexibility is the key to being able to One pricing strategy is to give customers pendent operator is well positioned to tailor establish a unique identity for the inde- a choice between the best and a more a produce program suited to the community. pendent store. affordable line. “Some independents will “With all the emphasis from consumers “Independents have to differentiate have a dual offering,” says Campbell. “They’ll on health and wellness, the independent themselves from the competition, which is have a premium and a middle quality, so if operator has the best opportunity to provide great because independents are more people are short on money they can make a solutions for their customer base in the often the group that can react fastest to choice.” produce section,” says Stein. “The inde- change,” says Swarz. “A great example in Another strategy for independents is to pendent operator arguably knows their the Northwest is Chuck’s Produce, a two- leave the scramble to be the low-price leader customer base better than most store oper- store operation in Vancouver, WA. They to the big guys. “I don’t think we pay as much ators — often on a first name basis. have made no secret about their commit- attention to price as we do to quality,” says Independent operators are in touch with ment to promote produce at their locations. Pacheco. “We carry the best there is that’s local vendors and suppliers that can bring In these smaller footprint stores, the available.” product quickly from field to shelf.” produce department is the first thing you This advantage in flexibility is demon- see as you enter and it occupies a large Smaller Offers Flexiblity strated in virtually every area of the market’s part of the store’s space. Their item selec- The economic advantages major chains operation. tion is second to none, and they have one have in centralized administration and “I don’t think there is just one area where of the best educated staffs in the region.” purchasing can translate into a disadvantage independents are competing — we’ve seen Savanello of Allegiance Retail Services in the ability to respond quickly to changing many compete in a combined number of advises independent retailers to find a needs and trends at the local level. areas, including price, along with quality, supplier or co-op that allows the store to run “The ability an independent operator has customer service, and through the enhance- independently and yet have access to to parlay their relationship with their ment of the customer’s shopping resources of a bigger operation. He believes consumer, and their ability to be nimble in experience,” says Larkin. that type of system offers lots of opportuni- their merchandising and selection, allows “The real competitive advantage for inde- ties for success and diversity. them to capitalize more than ever on the pendents is understanding the communities Independent stores also have the oppor- increasing trend of health and wellness in they serve and having the ability to be nimble tunity to show a little flair and creativity in the produce aisle,” says FMI’s Stein. to meet evolving consumer expectations.” how they display the produce. “The way they merchandise produce is very appealing, and when you are in the stores it just makes you want to buy produce,” says Swarz. “Once you have been in the stores, it is easy to see why they have customers that come from all across the Portland and Southwest Washington region to shop their stores.” Visit Us At The independent operator can use the THE NEW YORK ability to move quickly long before the PRODUCE SHOW customer reaches the produce display. Booth #271 “It’s anyone’s game in the food world, but fortunately independent operators are known for being both nimble and competi- tive,” says FMI’s Stein. “The majority of independent operators I visited influence shoppers early in the planning phase and reach their customers across channels. For instance, we also know from our trends research that the Millennial generation is not necessarily planning their meals and is instead eating by meal occasion.” This advantage in flexibility extends to being able to more quickly reverse mistakes. “Independent operators can reverse decisions very quickly, if necessary, based on the performance within the store,” says Stein. “If they make a bad deci- sion, they can learn from it immediately and change direction. This ability to be nimble is a great asset.” pb
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ASCENDENT INDEPENDENTS
PHOTOS COURTESY OF PSK FOODTOWN PSK Foodtown This retailer fuses independent-style customer service and product variety with large-scale force. BY MINDY HERMANN
ruits and vegetables are the king and queen at PSK town stores are known for. Foodtown of Bay Ridge, in Brooklyn, NY. A large and colorful produce department greets shoppers with the A Unique Structure look and feel of a farmers market. Signage throughout PSK enjoys the best of both worlds — the independence of a family- the store highlights the local farms and farmers whose products fill creative displays. The store’s weekly circular features 12 produce specials on the front cover, plus additional items in “Be Healthy”F (organics) and “Locally Grown” boxes on the same page. Indeed, produce drives sales at this independent store that is part of a 12-store metropolitan and upstate New York chain owned by PSK Supermarkets, Mount Vernon, NY.
A Competitive Edge PSK produce departments take sales so seriously that they compete against each other in a chain-wide competition, “In the Game.” The contest originated with staff during a PSK University meeting — a quar- terly gathering to discuss the upcoming season, success stories, and issues in the stores. “Each week, I call out four or five items that each produce team has to display and market in a unique way,” explains John DiPietro, director of produce. “The competition encourages the produce depart- ments and staff to be creative. They place the featured items in special displays, talk them up to customers, post photos of displays on their store’s Facebook page for shoppers to vote on, and vie for top sales.” Featured items are priced aggressively to offer the value that PSK Food-
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John DiPietro, director of produce, works closely with C & S Wholesale Grocers to tailor produce orders for specific Foodtown locations.
what is fresh and in season,” says DiPietro. “They are encouraged to develop relationships with local farmers, particularly in our upstate New York stores with farms nearby.” The manager at the Cold Spring, NY-based Foodtown, for example, buys heirloom toma- toes for her store from a nearby farm. She decides how much to purchase based on the quality of the items and whether she can offer them at a good price. Stores flag local items with a “Locally Grown” icon in the circular and department, and display posters of the local owned chain currently run by third-generation competitive with different items. We can tailor farmers and farms throughout the store. co-presidents Noah and Daniel Katz and the a marketing philosophy (including circulars, PSK Foodtown also differentiates itself by economies of scale and product selection in-store POS, product mix and merchandising being first to market with new and seasonal afforded by being part of a large cooperative, concepts, etc.) to a member based on their items. “At our annual meeting, we identify the Allegiance Retail Services LLC, Iselin, NJ. specific needs.” best items that we’re going to bring in for the According to DiPietro, PSK’s close working The company also enjoys a long-time rela- coming year,” DiPietro explains. “Then we relationship with the executive team at Alle- tionship with Hatfield, MA-based C & S decide when to roll them out, usually a month giance — Michael Stolarz, president; Dean Wholesale Grocers, which is one of the produce before other markets do. For example, if other Holmquist, vice president, perishables; and Vic suppliers for Allegiance. PSK tailors its markets begin displaying tote apples in Savanello, director, produce and floral — is purchases for each Foodtown location. A store September, we try to put them on the shelves invaluable. in the Bronx, for example, might stock more in August. We also were the first to sell mums “We strategize together on marketing plantains and avocados while one in Bay this fall, at a great price to the shopper.” programs and talk weekly about promotions for Ridge, Brooklyn, has more long-stem arti- each of our stores,” notes DiPietro. chokes and stalks of Brussels sprouts. Personalizing Service For Customers “The power of joining our co-op is that we “The team at C & S works closely with us to Seasonal fruits and vegetables enjoy promi- can tailor requests to any particular group,” source products that meet the needs of each of nent placement in the store. DiPietro says the says Savanello of Allegiance. “For example, I our stores,” says DiPietro. “With field staff all store runs a popular Grapemania campaign in currently have about eight different versions over the country, C & S gets great deals for us August and September with Delano, CA-based of a produce ad. So for some stores, marketing and our customers. The buying team also is Jacov P. Dulcich & Sons Farms, “a grower with requires more of a tropical presence and a happy to source any special items that our whom we have cultivated a close relationship,” slightly different retail zone — where retails shoppers or stores request.” says DiPietro. “They provide us with premium are lower and gross profits are tighter. In some As an independent chain, PSK can supple- seedless and globe grapes we feature on the areas, the store is competing against a ment its C & S products with local fruits and front page of our ad, display in the stores, and, ShopRite or a Wal-Mart, so we have to be more vegetables. “Our produce managers know best most importantly, price competitively. Over the
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past four years, sales of their Pretty Lady ming and snacks. Stores in other locations the next level.” grapes rose by 50 percent. The fall season donated items such as cases of strawberries The Katz brothers are both remodeling brings apple, squash, pumpkin and mum and cauliflower to area festivals, and crates of existing stores and planning to open new ones promotions. PSK’s ‘Summer in Winter’ pumpkins to classrooms. Not wanting to leave in 2015 and 2016. The recently remodeled campaign centers around grapes and stone a community without a market, PSK also Foodtown of Bay Ridge, now 18,000 square fruit from South America.” rebuilt stores in areas that were damaged or feet, includes a second floor for organic “We strive to provide the world-class destroyed by flooding during Hurricanes Sandy grocery items, a bigger produce department, personal service, high quality, and value our and Irene. larger and improved produce display cases, and shoppers expect,” notes DiPietro. wider aisles. The company also moved some of PSK encourages all employees to follow an Moving Heritage Forward its seasonal featured items outside of the store “8-foot rule” that calls for making eye contact The future points to continued growth and and onto the front sidewalk in special displays. and saying hello to any shopper within 8 feet. success. Grandfather Paul Katz, the P and K in Health is promoted throughout the store on The stores go the extra mile for customers, PSK, entered the grocery business in 1956 with bulletin boards and in signage. many of whom are on a first-name basis with a store on 204th Street in the Bronx. He was “Today’s food trends are good for PSK and produce department staff. “If a shopper needs later joined by son Sidney, who helped create its produce departments,” says DiPietro. something special, we write it down, call our and expand PSK Supermarkets into the owner- “People are eating healthier, and that includes supplier, and then call the shopper back within ship of 12 Foodtown markets in metropolitan having more fruits and vegetables.” pb 24 hours to say whether or not we can get and upstate New York. Sidney’s sons Noah and what they requested,” says DiPietro. Daniel entered the family business more than PSK Foodtown always gives back to its 20 years ago. communities. Its local produce program “Noah and Daniel are passionate about the supports small farmers. The Foodtown in business,” explains DiPietro, a 32-year veteran Bedford-Stuyvesant, Brooklyn, participates in in the produce business who has been with Bedford-Stuyvesant Restoration, a project that PSK for seven years. “They believe in delivering combines community action with private what matters most to our customers and support, by educating children on healthy communities — variety and value — but also snacking and providing afterschool program- have the vision to take PSK Foodtown stores to
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WINTER MERCHANDISING
Marketers say they work with chefs to create holiday recipes (L-R) PHOTOS COURTESY OF DEAN BARNES AND BABÉ FARMS using carrots and winter Turning Up The Heat vegetables such as cabbage. On Winter Produce Sales
Holiday season should generate lots of profits and good cheer to boot. BY CAROL BAREUTHER
urn up the heat on produce sales sales for Christmas, and some retailers will eat 8.3 pounds of cabbage annually, so we work during the cold winter months. It’s offer bin sales at this time. We don’t suggest with chefs and food editors on recipe develop- a ripe time to stimulate sales. After cabbage as a loss leader since it’s already one ment in an effort to show cabbage’s versatility,” T all, the first and fourth quarters of the most affordable vegetables in the explains Shannon Kyle, part of the sales and represent the lowest produce dollar produce department.” marketing team at Torrey Farms, in Elba, NY. sales of the year, or more specifically, 2 to 8 Christmas is one of the biggest cooking “Retailers can offer recipes on cards in-store, in percent lower dollars than the second and holidays of the year and is a time when point-of-sale materials, in their ad circulars, on third quarter sales, according to data supplied customers are interested in recipes. “Americans their websites and in email fliers.” by the West Dundee, IL-based Nielsen Perish- ables Group. “The holiday season is fun and exciting in produce,” says Scot Olson, director of produce and floral for Grocery Outlet Inc., a 200-plus- unit chain headquartered in Emeryville, CA. “In January, the theme is healthy eating and New Year’s resolutions, and fruits and vegeta- bles remain in the forefront.” At this time of year retailers nationwide can up the ante on register rings by incorpo- rating the season’s most iconic fruits and vegetables into holiday-themed promotions.
CABBAGE “Green is the real volume mover for us from December to the middle of May, Root vegetables play followed by red and savoy,” says Jeff Williams, integral roles in this president of William P Hearne Produce, in season’s winter merchandising. Wimauma, FL. “We do see a boost in cabbage PHOTO COURTESY OF BABÉ FARMS
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“We suggest displaying cabbage with other soup ingredients like potatoes and onions. Some retailers will even cut cabbage, carrots, potatoes and onions in-store and wrap them to sell as a fresh soup or stew starter.” — Shannon Kyle, Torrey Farms
(L-R) PHOTOS COURTESY OF LOVE BEETS
Cabbage stars in a New Year’s promotion are big at this time, and those customers at Redner’s Markets, a Reading, PA-based who like to make their own enjoy the chain, which operates 42 warehouse markets convenience of a larger bag,” says Olson. and 16 convenience stores in three states. For something different, merchandise “Cabbage and pork roast is the traditional multi-color Rainbow Crunch carrots in 1- good luck meal here in Pennsylvania,” says pound bags of mini-carrots and 2-pound Richard Stiles, director of produce and floral. whole carrots with other party tray “We use bin displays of cabbage and cross- ingredients. merchandise in the meat department.” “This is a sure way to give your A post-holiday desire to eat healthfully customers more options for brightening combined with extreme cold weather in up their selection of snacks and appe- much of the nation makes soup and stew tizers,” says Doug McFarland, marketing popular in January and February. “Some director at Colorful Harvest, LLC, in people like to use cabbage in their beef soup Salinas, CA. rather than noodles. We suggest displaying Another great cross-merchandising Marketers are providing more cabbage with other soup ingredients like tip is to cross-promote carrots with other merchandising options for potatoes and onions. Some retailers will even items to drive convenient solutions for retailers with vibrant packaging cut cabbage, carrots, potatoes and onions in- consumers. “An example might be ‘meal solu- and display instructions. store and wrap them to sell as a fresh soup or tions’ or tying carrots in with turkey, potatoes stew starter,” says Kyle. and other meal-building items for the holi- Cross-merchandise coleslaw dressing next days. Or a ‘healthy snacking’ theme consisting carrot chips and carrot sticks in addition to to cabbage in the week leading up to Super of carrots with pre-cut fruit, nuts and other 2-pound baby carrots,” says Borda. Bowl on February 1. Coleslaw is a popular healthy snacks for New Year’s resolutions,” topper for party-fare such as pulled pork explains Bolthouse’s Tao. CHILEAN FRUITS sandwiches. Baby carrots and celery are promoted as “Over the past year, we’ve been working dippers in the pre-Super Bowl ad circular at hard to develop new concepts and recipes that CARROTS Redner’s Markets, along with fresh fixings for can fit different holidays and occasions that “The primary selling season for baby dips, such as guacamole and salsa. take place during the main season for Chilean carrots occurs in Q4 and Q1, driven by “For Super Bowl party platters, cross- fruits,” says Karen Brux, North America’s holiday cooking, social gatherings, and merchandise 2-pound bags of baby carrots, managing director for the Santiago, Chile- general healthy eating,” explains Carolyn Tao, cherry tomatoes and hummus, or merchan- based Chilean Fresh Fruit Association senior director of marketing for Bolthouse dise 2-pound bags of baby carrots with celery (CFFA). Fruits include cherries, grapes, stone Farms, based in Bakersfield, CA. “Consump- and ranch dip,” suggests Bolthouse’s Tao. fruit and blueberries and the season runs tion peaks during the following holidays: Super Bowl is one of the largest shipping January through April. “We use these Thanksgiving, Christmas, New Year’s, Super times of the year for all carrots, according to (concepts and recipes) primarily for social Bowl, and Easter.” Bob Borda, vice president of marketing for media, and found this to be a successful tactic Two-pound bags of baby carrots sell well Grimmway Farms, in Bakersfield, CA. for generating exposure for Chilean fruit on in December at Grocery Outlet. “Party trays “We see increased movement on our retail websites, Facebook pages and blogs.”
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CITRUS catching displays,” explains Julie DeWolf, “We have a big focus on citrus starting just director of retail marketing for Sunkist before Christmas with ad prices and in-store Growers, Inc., headquartered in Valencia, CA. specials,” says Randy Bohaty, produce director Promote grapefruit in the New Year. at B&R Stores, an 18-store chain based in “Grapefruit is a wonderful piece of fruit to Lincoln, NE, which operates under the Russ’s promote in January when the focus is on Markets, Super Saver, Apple Market and Save healthy eating,” suggests Kim Flores, Best Foods banners. marketing manager for Seald Sweet Interna- “To support the long-standing tradition of tional, based in Vero Beach, FL. “The Ruby adding citrus to holiday stockings, we have a Red variety from Florida is available into number of holiday-themed Navel cartons that April. Give grapefruit extra real estate by are stackable and create fantastic, eye- creating a larger or high-visibility endcap
“Displays should high- light the nutritional value of citrus and also include information on taste profiles, as this would be a perfect time to get consumers to try something new like a Moro orange, a Cara Cara Navel, a Pummelo or a Minneola Tangelo.” — Julie DeWolf, Sunkist Growers
A good example is the recipe for Chilean cherry, wild rice and quinoa salad that the produce staff at Bristol Farms, a 13-store chain based in Carson, CA, posted on the retailer’s blog site on December 31, 2013. “For this coming Chilean cherry season, we anticipate harvest will begin around the middle of November and continue through the end of January with favorable volumes and opportunities for good promotions,” says Craig Uchizono, vice president Southern Hemisphere for the Los Angeles, CA-based Giumarra Companies. Another good retail recipe example is Kin’s Farm Market, a 29-store specialty produce retailer headquartered in Richmond, British Columbia, which posted CFFA’s recipe for Blueberry Chocolate Clusters on its website in February for Valentine’s Day.
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(L-R) PHOTOS COURTESY OF SUNKIST GROWERS
display to encourage impulse sales by health- In order to garner attention for the minded customers. Price promote in ad holiday season, Sunkist’s “Share the circulars at the same time.” Holidays” packaging features Navel Communicate the vitamin C-rich content oranges with blue, red and green gift- of citrus. “Merchandise citrus in the phar- says DeWolf. wrap bows as well as gift tags and a QR code for consumers to scan and macy section of the store during key months Tout pink- and red-fleshed citrus for learn more about the product. of cold and flu season, rotating varieties Valentine’s Day. “Cut Cara Cara Navels and through the months of January through Blood Oranges in half and cover with plastic April. Displays should highlight the nutri- wrap so customers can see their interior. tional value of citrus and also include Merchandise with strawberries and/or Schueller, director of public relations for information on taste profiles, as this would be passion fruit for a Valentine’s Day theme. Melissa’s/World Variety Produce, in Los a perfect time to get consumers to try some- Valentine’s Day is on a Saturday in 2015, and Angeles, CA. thing new like a Moro orange, a Cara Cara celebrations tend to be much larger when a Chinese New Year’s, set for February 19, Navel, a Pummelo or a Minneola Tangelo,” holiday falls on the weekend,” says Robert 2015, isn’t a big produce holiday at B&R
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“Price promotion isn’t director for North Shore Greenhouses, Inc., “Price promotion isn’t necessary during in Thermal, CA. the holidays, because customers are looking necessary during the The company offers a 24-ct shipper of its more for quality than price. Also, this time of holidays, because Living Herbs-brand Poultry Delights, a year tends to be the entry point for many to clamshell consisting of rosemary, thyme and the category. However, do offer line-pricing customers are looking sage that is perfect for seasoning turkey. North discounts such as $2.49 or 2/$5 rather than more for quality than Shore Greenhouses can also provide retailers a $2.99 in January when consumers want full- 60-ct shipper that holds 24 clamshells of flavored dishes with less salt and fat. Some 90 price. Also, this time of Poultry Delights, as well as 12 each of individ- percent of U.S. households don’t buy fresh year tends to be the ually pre-packed clamshells of rosemary, thyme herbs on a regular basis. This is a good way to and sage. These shippers can be cross-merchan- keep them coming back to the category,” says entry point for many dised in the meat department. Coosemans’ Goodman. to the category.” — Chick Goodman, Coosemans Worldwide
Stores. However, “we do see increased sales of Mandarins at that time among some of our customers, especially stem on fruit,” says Bohaty. Likewise, “Pumello sales pick up for us for Chinese New Year’s,” says Grocery Outlet’s Olson. Sunkist Growers offer two Chinese New Year’s themed high graphic 10-pound cartons of Pumellos and Navels. One style is a symbolic, celebratory design that contains Chinese coins and red envelopes, and the other is specific to the animal being cele- brated each year. In 2015, the celebrated animal is the sheep. “Both cartons are easily merchandised as floor stacks, so there is no need to rearrange the shelf planogram, which is convenient and also helps create a large and impressive citrus presence,” says Sunkist’s DeWolf.
FRESH HERBS “Fresh herbs are big sellers because they make holiday meals more special,” says Chick Goodman, the San Francisco, CA-based vice president of sales and marketing for Coose- mans Worldwide. “Eighty percent of sage sales for roast turkey occur between November 15 and December 31.” “Display herbs next to cooking vegetables such as green beans, mushrooms, red peppers and shallots,” recommends Jim Fox, sales
PHOTO COURTESY OF NORTH SHORE GREENHOUSES
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Marketers say that kale chips are a great promotional item for Super Bowl. Walter P. Rawl and Sons introduced its Kale Chip Kit with Chili & Lime Seasoning this spring, followed by two flavored line extensions — Cajun Spice and BBQ — in October. The 12-ounce kits include fresh-cut kale and seasoning packets.
PHOTO COURTESY OF WALTER P. RAWL
In the run up to Super Bowl, “cross- merchandise cilantro with tomatoes for making salsa and chives for twice-baked potato or potato skins,” suggests North Shore’s Fox. Coosemans offers a Mojito Kit, which scores at many Super Bowl parties. The kit contains fresh mint, sugar cane, lime and a recipe.
LEAFY GREENS “Traditionally, collards have been the February 19, 2015 is the Chinese New Year. ‘good luck’ green for New Year’s, but as kale San Miguel suggests promoting unique Asian gathers more notoriety it too has become green recipes, such as this Baby Bok Choy popular. This is leading growers to offer new with lemon-ginger oil, during this holiday. kale products. PHOTO COURTESY OF SAN MIGUEL “We begin the expansion of our Nature’s Greens line in mid-October with a chard and kale and seasoning packets. kale blend, followed by our new Burgundy Out-of-the-box suggestions for Valentine’s Kale. Heading into November, we will launch promotions include merchandising bouquets our Nature’s Greens Kalettes,” explains Ashley of Rainbow Chard or Rainbow Kale as a Rawl, vice president of sales, marketing and romantic dinner fixing, or providing an in- product development for Walter P. Rawl and store or in-circular recipe for kale brownies. Sons, Inc., in Pelion, SC. “Food is a large part of the Chinese New In the New Year, and in addition to leafy Year celebration, so increase sales by greens for salads, says Redner’s Markets’ Stiles, expanding your Asian Greens set during this “we see other items picking up like Red and time with items such as Gai Lan, Yu Choy, Green Swiss Chard, therefore we added more Dau Mue in addition to the regular Shanghai variety to our greens section and will promote Bok Choy and Junior Bok Choy. Bok Choy is for healthful eating.” also available in a baby or mini variety,” says “The New Year provides opportunities to San Miguel’s Cook. merchandise kale, chards, spinach and beet greens in the forefront, as they are easier to ONIONS introduce to someone new to dark, leafy “Cross-merchandise green peas and pearl greens,” explains Brian Cook, director of sales onions for traditional holiday dinners,” for San Miguel Produce, Inc., in Oxnard, CA. suggests Melissa’s Schueller. Kale chips are a great promotional item for “Build large displays of yellow, red and Super Bowl. Walter P. Rawl and Sons intro- white storage onions as these are prime ingre- duced its Kale Chip Kit with Chili & Lime dients used on menus throughout the Seasoning this spring, followed by two flavored holidays,” says Sherise Jones, marketing line extensions — Cajun Spice and BBQ — in director for the Idaho-E. Oregon Onion October. The 12-ounce kits include fresh-cut Committee, based in Parma, ID. “Come
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POTATOES tion, display bins and boxes of varietal pota- “People are going to “Push varietals like Butter Red, Butter toes prominently in order to call attention as buy potatoes for the Gold and Butter Russets for the holidays,” says well as cross-merchandise in the meat depart- John Pope, vice president of sales and ment next to holiday hams or turkeys.” holidays, so a deep marketing for MountainKing Potatoes, in Promote potatoes to remind customers to discount will only Houston, TX. “Customers want to impress buy rather than positioning as a loss leader. friends and family and are willing to spend a “People are going to buy potatoes for the holi- erode margins. Start little extra. To encourage this, place Butter days, so a deep discount will only erode promoting at least two Golds in the weekly ad circular with words margins,” explains Seth Pemsler, vice presi- like ‘butter flavor and creamy texture — great dent of retail for the Idaho Potato weeks out from the for mashing,’ then perhaps add a recipe for Commission (IPC), in Eagle, ID. “Start holiday in order to garlic butter gold mashed potatoes. In addi- promoting at least two weeks out from the maximize sales.” — Seth Pemsler, Idaho Potato Commission
January and February when it’s cold, encourage customers to cook with onions. We developed 10 new recipes that put an onion twist on all-American comfort foods like Southern shrimp and grits, sweet and savory caramelized onion waffles, and a lobster salad roll. The recipes are available in printed recipes booklets, or downloadable to print in a form a retailer would like, or by scanning a QR code at point of sale.” Four-pound bags of sweet onions are the major movers in the winter for Market Fresh Produce, LLC, based in Nixa, MO. “Cross- merchandise onions with tomatoes and avocados in Super Bowl promotions,” suggests Chris Jones, director of procurement.
MoutainKing Potatoes offers this PHOTO COURTESY OF shipper with its restaurant-style MOUNTAINKING POTATOES marketing to inspire customers looking to recreate their favorite potato side dish.
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Some marketers suggest retailers try new twists on familiar favorites for in-store marketing, such as turkey stuffing with parsley root or celery root. Featuring root vegetables in retail (L-R) PHOTOS COURTESY OF BABÉ FARMS cooking school classes is also suggested.
holiday in order to maximize sales.” Lover’s Month (PLM) display contest from its (produce lifecycle management) tie-in partner Snacking becomes a primary reason for traditional scheduled time of February to two Hormel Real Bacon Bits,” says IPC’s Pemsler. potato consumption for the Super Bowl. months, January 15 to March 15 in 2015. “Retailers can promote our Steakhouse More than 5,000 stores nationwide partici- ROOT VEGETABLES Bakers for potato skins and Steakhouse pated last year. “We sell so much horseradish root for Roasters for dipping in ranch dressing,” “These dates now encompass the Super Hanukkah and Christmas — more than 50 suggests MountainKing’s Pope. Bowl holiday. This is a great occasion to percent of our annual sales — so we give it its The IPC will expand its annual Potato promote Idaho potatoes along with our PLM own display,” says Redner’s Market’s Stiles
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“During the holidays, and Smoked Salmon Salad; and even a Spiced tional pricing on 40-pound box U.S. No. 1 Beet Pie. sweet potatoes to help drive additional retail we like to run special sales,” says Market Fresh Produce’s Cook. in-store demos SWEET POTATOES Keep sweet potatoes on weekly grocery lists “Sweet Potato latkes are a sweet and in the New Year by offering customers new featuring seasonal colorful twist on a Hanukkah classic,” says usage ideas. “Sweet potato fries can be paired recipes that allow Jason Stemm, spokesman for the Benson, with interesting dipping sauces and sweet NC-based North Carolina Sweet Potato potato skins loaded with favorite toppings like consumers to try our Commission (NCSPC). “Sweet potatoes bacon, cheese and sour cream to elevate the beets, as well as provide (baked and mashed) can also be used in big-game fare. Another fun twist is Sweet holiday baking as a substitute for pumpkin or Potato Spring Rolls for Chinese New Year’s them with creative bananas.” celebrations. Sweet potato consumption is on recipes they can incor- “Bring marshmallows and brown sugar the rise, and getting shoppers to consider them from the grocery department into produce to a staple in meal planning has been driven by porate into their cross-promote with sweet potatoes. During the offering different and healthier options for holiday meals.” holidays, we will offer our customers promo- preparation,” says Stemm. pb — Natasha Shapiro, Love Beets Global
“The days of only mashed potatoes with butter and sweet potatoes with sugar has gone by the wayside,” says Karen Caplan, president of Frieda’s Inc., in Los Alamitos, CA. “Today, parsnips, turnips and celery root are picking up in interest. If I were a retailer with a regis- tered dietitian in store, I’d suggest creating a roasted vegetable center display, highlighting each one, and telling customers how to roast.” There are so many types of root vegetables that can be featured. “For example, we have celery root, parsley root with and without tops, nine types of radishes and three types of beets,” explains Ande Manos, in marketing and new business development at Babé Farms, in Santa Maria, CA. “To familiarize customers, offer taste-testing stations, in-store video loops demonstrating preparation tech- niques and recipes, suggestions of how to branch out and try new twists on familiar favorites, such as turkey stuffing with parsley root or celery root, and feature root vegeta- bles in retail cooking school classes.” There is little preparation required for marinated baby beets and pre-cooked beets marketed under the Love Beets-brand by Love Beets Global, based in Vineland, NJ. “During the holidays, we like to run special in-store demos featuring seasonal recipes that allow consumers to try our beets, as well as provide them with creative recipes they can incorporate into their holiday meals,” says marketing manager, Natasha Shapiro. The company’s website offers a number of festive red-hued recipes that can be featured for Christmas parties or romantic at-home Valentine’s Day dinners. These include Beets and Melted Brie on Toast; Beet, Asparagus
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North America is opening avenues for Central America to supply a more diversified and larger volume (L-R) PHOTOS COURTESY OF DEAN BARNES AND BROOKS TROPICALS of tropical, Oriental, greenhouse and conventional vegetables. Great Vegetable Opportunities Abound In Central America Production developments in Guatemala, Honduras, Costa Rica, Nicaragua and Panama present fresh sourcing potential. BY GILL MCSHANE
rowing consumption of an ever- The pear-shaped chayote (similar to Ginger has also emerged as a must-have wider range of vegetables in zucchini) represents another low-calorie and ingredient for adventurous palates. North America is opening up nutritious vegetable that can be cooked Brooks Tropicals sees tropical roots from Gavenues for Central America to almost in as many different ways as boniato. Central America as a growing market. The supply a more diversified and larger volume of tropical, Oriental, greenhouse and conventional vegetables. Tropical roots, in particular, are gaining traction as Asian and Latino communities seek nostalgic comfort food from their home- lands — a trend, which is catching on among the North American population at large. “Tropical roots are gaining prominence on the table,” says Peter Liefermann, sales director for Brooks Tropicals in Homestead, FL. “Their often exotic tastes build great foun- dations for the side dishes paired with turkey, ham and duck.” According to Mary Ostlund, Brooks Trop- icals’ marketing director, product-wise, calabaza (a large squash) is fast-becoming a favorite among North Americans thanks to its nutritional value, while boniato (a white sweet potato) can easily replace regular pota- toes. “Discovering the nutty taste of boniatos in a dish is a delight,” says Ostlund. PHOTO COURTESY OF DEAN BARNES
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firm already imports plantains, malanga, to earth than root vegetables,” says Ostlund. cans can do the same for Russet potatoes — yams, eddos, calabaza, chayote and yuca from “For many consumers, their comfort that’s how important these vegetables are to oots Nicaragua, Costa Rica and Panama. foods are malanga, yuca, true yams, eddos these consumers,” she says. y “Cold weather and holidays bring cravings and boniatos. Asian and Latino consumers Luis Utrera, production manager of for soups, stews, casseroles, sides of down-to- can easily describe the taste of dishes made Guatemalan mango supplier El Tintero, agrees nd earth vegetables and you can’t get more down with these vegetables. Very few North Ameri- North America’s ethnic diversity is a key driver m of trade from regions like Central America, which have the right climate to grow traditional and and exotic produce, not to mention the high take TIME TO SHAKE UP THE MELON OFFER quality and food safety standards demanded by the market. ” elon and watermelon imports “North American supermarkets promote from Central America may have Central American fruits and vegetables to Note Side Mbeen strained volume-wise, but satisfy a captive market, which is comprised of opportunities still remain for North Amer- many ethnic groups that demand and are ican retailers to procure new varieties that prepared to buy nostalgic products which they will continue to inspire consumers to identify with their ancestral roots,” says Utrera. make repeat purchases for years to come. But aside from population diversification, “Melon volume and consumption have Ostlund says rising interest among the overall hit a plateau,” explains Jim Graves of public means tropical roots are starting to import specialist Fresh Quest in Plantation, enter the mainstream market. “Many tropical FL. “What’s happening is North America is roots are in the ‘early adopter’ stage, and we’ve looking for new varieties. The trade is seen from mangos, avocados and papayas changing and wants something different.” how it can take off from there,” she notes. Graves says North American retailers To satisfy the growing demand, country now want different flavors, colors and suppliers like Honduras, Costa Rica, textures for their melon range. To that PHOTO COURTESY OF FRESH QUEST Nicaragua and Panama are all positioning end, Fresh Quest is looking to diversify its themselves to export greater volumes of trop- offer by testing all varieties at its melons than the U.S. at the moment.” ical roots to North America, with some even Guatemalan production base. Melons and watermelons continue to shifting away from traditional pineapple and “We are continuing to test a number top the list of imported produce items melon production. of different varieties,” he explains. from Central America. With the decline in “In Costa Rica the medium to small “Cantaloupes and honeydews have been production in Costa Rica, Panama, pineapple growers have realized they can’t the mainstay of the market, so it’s about Nicaragua and Honduras, Guatemala has compete in the fresh market, so they’ve gone education and getting people to try emerged as the leading supplier. back to root vegetable production like yuca,” different varieties. But if retailers don’t “Guatemalan melons and watermelons says Mauro Suazo, president and chief execu- bring them in, then consumers won’t see continue to be the best in the market,” tive of Suazo Agro in Pompano Beach, FL. them.” says Mauro Suazo of Pompano Beach, FL- Suazo says by switching to pineapples in Fresh Quest has already reaped new based Suazo Agro. “They compete very the first place the growers have actually varietal success by sourcing Caribbean well in the United States, and they also created demand for root vegetables, particu- Gold — a new-generation cantaloupe go to Canada and Europe. The industry larly items like chayote. “There is demand in melon bred by a Netherlands seed devel- continues to thrive and will grow bigger the United States; Costa Rica can comply with oper, Rijk Zwaan. “Fresh Quest was one this year. Some 95 percent of the melons the phytosanitary regulations, so there are no of the first companies to develop the and watermelons grown in Guatemala end constraints on trade.” variety for the U.S. market, but everyone up in the United States.” With that in mind, and as consumers is bringing it in right now,” says Graves. Graves agrees Guatemala is a well- become more aware of yuca, calabaza, “Eventually, there will be another melon respected melon supplier, adding the malanga and other tropical roots, Suazo like Caribbean Gold that takes hold of the country has the right growing season, believes the industry will grow in Costa Rica market. Rijk Zwaan is continuing to offer climate and logistics. “Honduras is defi- and continue to expand in Nicaragua, where new varieties,” says Graves. nitely an equal competitor but it overlaps suppliers previously exported via neighboring Fresh Quest also supplies Honeymoon later in the season, and Costa Rica is less Costa Rica. Galias to North America as it seeks to find now than it ever was,” he says. “The Nicaraguans have created their own varieties with the most potential for the “We used to have a farm in Honduras demand for Nicaraguan roots, so they’re market. “We’ve increased our Honeymoon for a number of years, but we shut it entering the market with their own brand,” Galia volume from 10 loads per week to down two years ago. We are now 100 says Suazo. “Quality is also coming up to par 25 loads,” says Graves. “We’re trying to percent out of Guatemala because of the with other country suppliers.” push yellow honeydews, too. Canada food safety, logistics and government In addition, Suazo says a tropical roots seems to be more favorable to yellow support offered.” pb sector is emerging in Panama, where squash, yuca and plantain are substituting lost melon
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PHOTO COURTESY OF SUAZO AGRO
exports following the demise of the melon vegetables. “In today’s world, there are no sector in the last five or six years. Oriental vegetables,” she says. “There is produce from Asia, but calling produce Oriental Vegetables Go Mainstream Oriental is passé. Almost all are now used and Oriental vegetables have already gained relished across many cuisines.” favor with North American consumers, so Okra, in particular, has made its mark. much so that Brooks Tropicals’ Ostlund says “Everyone in general wants okra in the United they now deserve to be classed as mainstream States,” says Jim Graves, who handles sales at
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bulk volumes of watermelons, yellow GUATEMALA TARGETS honeydew melons, Honeymoon Galias and MANGO SHORTAGES cantaloupes. At times, it imports vegetables such as asparagus from Peru, plus leeks, okra, uatemala’s flourishing mango the replanting of existing sites. French beans and sugar snaps from Side Note Side sector is looking to fill windows of In the meantime, Guatemala has Guatemala. Glow availability in North America made significant steps toward offering “We’d love to diversify,” says Graves. “We’re by extending its season with early and the market value-added mangos. looking into vegetables, but on a more late varieties. “Parallel to the growth in production in contractual basis. We are looking to do more The Central American nation currently the last decade there has been an French beans from Guatemala because they’re supplies from March to May and emphasis on the processing industry to in demand, so we’re doing more trials at the competes with Mexico — North America’s obtain pulps and frozen pieces, as well moment.” biggest mango source. During the last as ready-to-eat fresh-cut fruit from Because of Guatemala’s highlands, Suazo few years, however, Guatemala has surplus production.” claims the nation could produce a wide selec- focused on diversifying its varieties to With fresh exports in the region of tion of vegetables, including artichokes, celery help boost demand and prices globally. 18,000 tons per season, Guatemala is and lettuce. However, so far, he says there has “The trend has been toward producing currently the fifth-largest mango exporter been no major production push, although early varieties like Ataulfo and also late to North America, after Mexico, Brazil, one local company, Cuatro Pinos, is growing varieties such as Kent and Keitt to prolong Ecuador and Peru. Nicaragua also occu- some items. the season and take advantage of pies a small niche. “Fresh Quest is keen to look into the poten- windows of short supply,” explains Luis “Guatemala and Nicaragua are both tial for leeks in Guatemala and is already Utrera, production manager of El Tintero, a thriving in mangos — they have great seriously considering asparagus. Central Amer- mango grower/exporter in Guatemala. quality and continue to grow,” says ican Produce brings in Guatemalan leeks on a Utrera says Tommy Atkins currently Mauro Suazo, chief executive and presi- consistent basis,” says Graves. accounts for 90 percent of Guatemala’s dent of Suazo Agro in Pompano Beach, “There’s big potential for asparagus mango exports. Ataulfo is now the FL. “Nicaragua can supply the United because unlike Peru, it doesn’t have to be second most important variety, thanks to States during February and through May, fumigated on arrival in the United States. If an acceleration in production during the before Mexico enters the market, so they you could perfect production you wouldn’t last few years through new orchards and have a little niche.” pb have to worry about shelf life. But asparagus is more difficult to grow in Guatemala, so we’re trying to find the best places.”
Plantation, FL-based Fresh Quest, which away the Oriental vegetable market from the Greenhouse Veggies sources melons and vegetables from Dominican Republic. They have good vari- Boom In Guatemala Guatemala. “Okra has worked well and it’s a eties and good harvesting practices — they Greenhouse vegetable production, mean- vegetable that’s in demand.” just need to improve cooling.” while, is taking off in Guatemala and Suazo claims Honduras is currently the presenting more opportunities for North okra giant of Central America. “Honduras is Diversification For Conventional Veg America to source quality salad items from a the king of the fresh okra market,” he says. In terms of conventional vegetables like country supplier that has invested great “The country is producing a lot because inde- snow peas, sweet peas and fresh beans, efforts in its quality and food safety manage- pendent producers of melons and Guatemala continues to be the strongest ment systems. watermelons have shifted to okra.” supplier in Central America by far. “They are “The greenhouse industry for colored bell In general, central Honduras has made mostly coming to the U.S. as fresh but some peppers and tomatoes is booming in major increases in the production of Oriental are frozen and volume is heading to the Guatemala and is now able to compete with vegetables, as well as roots like calabaza, United Kingdom and Europe too,” says Suazo. other Central American greenhouse compa- squash and even cucumbers, according to Graves agrees Guatemala is the key produce nies, as well as Mexico,” says Suazo. Suazo. Going forward, he believes the sector supplier in Central America in view of its long “The market is very happy with the quality has the potential to expand so long as cooling season. “Central America is very important for and variety. The proximity to the market improvements are made. the North American market,” he points out. means Guatemala can supply all major U.S. “There’s a thriving industry of greenhouses “Guatemala can do almost the full Central eastern areas, including Florida, Philadelphia, and shade houses in Honduras, and an American season from November to May, and New York, among others. Mexico supplies emerging trade with retailers and wholesalers,” when there is no local production in North the West Coast from Sinaloa.” says Suazo. “Eighty to 90 percent of the okra America; it’s winter here and summer there.” Graves says Fresh Quest is definitely keen produced in the country is consumed fresh in As such, there are definitely opportunities to look into the potential of sourcing offshore the United States, and some volume is begin- to source more produce from Guatemala, cucumbers from suppliers like Guatemala. ning to reach Europe by air. according to Graves, which is why Fresh Further ahead, Suazo suggests Panama could “But if Honduran exporters paid a little bit Quest is keen to explore further opportuni- be another source for greenhouse vegetables more attention to their cooling and post- ties for vegetables in the country. since the first hydroponic greenhouses are harvest techniques, they could probably take Currently, the company handles mainly starting to emerge. pb
54 PRODUCE BUSINESS • NOVEMBER 2014 Produce 4 Better_Ad 10/10/14 12:37 PM Page 1 Mex Avocado_Layout 1 10/23/14 10:32 PM Page 1
Retailers and restaurants can capitalize on increased avocado outreach by communi-
(L-R) PHOTOS COURTESY OF ROBINSON FRESH AND HASS AVOCADO BOARD cating with consumers the variety of health benefits avocados offer and demonstrating how they can be utilized in a variety of ways. Mexican Avocados Rise As Produce Champions
Nowadays these luscious fruits are scoring points year-round. BY LINDA BROCKMAN
ith football season upon us, an abundance of information for retailers on Calavo, the leading seller of Avocados from it may be easy for retail their websites. The Avocados from Mexico Mexico. “Our strong, profitable supply of produce managers to sell website provides ripening and nutritional fresh avocados from Mexico during the third Wbags of avocados, along with information for consumers, storage, promo- quarter enabled the company to offset this chips and salsa. But the main tion and display tips for retail stores, as well year’s small California harvest without ingredient in traditional game-day guacamole as recipes and support materials (table tents, missing a beat.” has become a popular fruit year-round among promotional posters, etc.) for restaurants. Even with recently rising prices, AFM does consumers who see it as a tasty and healthful Rob Wedin, vice president of fresh sales not appear to be feeling a negative effect. addition to a salad, sandwich, or simply cut and marketing for Santa Paula, CA-based “FOB carton prices over the last nine months and scooped out with a spoon. Calavo Growers Inc., says the future for have run 20 percent higher than the same Avocados from Mexico (AFM), with more avocados looks bright. “Significantly period in 2013. The same FOB prices have than 1.3 billion pounds of imports and increasing demand for avocados continues in been only five percent higher than 2012.” almost 70 percent marketshare, is leading the earnest. Consumers are zeroing in on fun Still, Wedin says, “avocado popularity way. The Dallas-based Avocados from Mexico foods that are healthy. Avocados lead that list. continues to grow at a steady rate. Volumes product is both the bestselling brand of Also, consumers are expanding their available in the market have grown every avocados in the United States and the name menus. They are realizing how diverse other year in the recent past. Volume was not of the promotion board focused on avocados are.” higher in 2014, so prices were higher.” increasing consumption of fresh Hass Avocados from Mexico are Calavo’s largest Calavo processes, packages and distributes avocados from Mexico. item, selling “in the range of 60 percent or avocados and other fruits to retailers and “As the market leader, we want to ensure more of the avocados in the U.S. and Canada,” restaurants worldwide. “This year, there was we drive category growth for years to come,” says Wedin. a 20 percent increase in avocado sales volume says Maggie Bezart Hall, AFM’s vice president “In the fresh business segment, Calavo compared to last year,” says Wedin, who of trade and promotion. “One way we are profitably managed sales and marketing of predicts Calavo’s sales of Mexican avocados encouraging growth is through consumer avocados sourced from Mexico to register will increase by 25 to 30 percent in the avocado education and product versatility in substantial year-over-year revenue and gross coming year. core uses. “ margin improvement,” says Lee E. Cole, The advantage comes from a year-round Growers and marketing associations have chairman, president and chief executive of availability. “Mexico is the only country of
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The sizing percentages vary from large/medium to medium/small two to three times per year. “When retailers display two sizes, they are in position to promote the more plentiful size range,” says Calavo’s Wedin. In order to encourage bagged sales among consumers, avocado packer, Riverside, CA- based Index Fresh features three “AvoBuddies” on in-store merchandising and ads to help sell its avocado brand, AvoTerro. Chef Charlotte shows consumers how to add avocados to meals; Muscle Marv informs consumers about the avocado’s health bene- fits; and Connie Convenience teaches them how to select and prepare ripe avocados. Robinson Fresh and its Green Giant Fresh brand offer consumers avocados in 3-, 4- and 5-count mesh bags as well as 3-count stand- up pouches, which include a variety of recipes PHOTO COURTESY OF HASS AVOCADO BOARD and usage tips, explains Jose Rossignoli, cate- gory general manager at Eden Prairie, MN-based Robinson Fresh. “A ripe, ready-to-eat avocado motivates consumer purchases more than any other vehicle,” says Wedin. “This takes advantage of avocado demand and also reduces damage caused by shoppers squeezing as they hunt for a ripe avocados.” Paul Kneeland, vice president of produce, seafood and floral for Parsippany, NJ-based PHOTO COURTESY OF HASS AVOCADO BOARD PHOTO COURTESY OF HASS AVOCADO BOARD Kings Food Markets, remembers when “customers would buy them green and then origin with four blooms that allow us to usage among casual chains and upscale complain they didn’t ripen up. Our ripe supply quality fresh Hass avocados year restaurants — with guacamole being the program helps customers pick out fruit better. round,” says Hall. The season for Avocados most popular. The study reported: “Flavor, Our avocados are shipped green and then we from Mexico began on July 1 this year and authenticity and versatility drive casual have someone ripen them, so they are will go year-round to June 30, 2015. dining operators usage of avocados as an perfectly ripe in-store.” Hass avocado production in Mexico is ingredient in many dishes . . . . The ability of “The most important thing a retailer can concentrated in the state of Michoacán, avocados to be paired with many different do, in terms of merchandising, is to display southwest of Mexico City. “The area’s rich flavors has really impacted menus, causing a avocados immediately adjacent to tomatoes,” volcanic soil spread over a range of different proliferation of new applications.” says Mission Produce’s Austin. “Granted, the elevations allows for continuous avocado Avocados sourced from Mexico are prima- larger the display the better, but placing production,” says Hall. rily where Mission Produce gets its Hass avocados next to tomatoes creates a beautiful Retailers and restaurants can capitalize on variety. “We feel the greatest areas of poten- and noticeable color-break. Plus, tomatoes increased avocado outreach by communi- tial growth may be foodservice, organics and and avocados are often used in the same cating with consumers the variety of health bagged fruit,” says Dave Austin, director of recipes, and since they are ethylene- benefits avocados offer and demonstrating marketing for Oxnard, CA-based Mission producers, they help ripen fruit. how they can be utilized in a variety of ways, Produce. say growers. In the produce section, AFM’s Hall Getting Sauced believes the right display can drive customers Avocado advocates say guacamole is a More Than Guac to buy. “In the shopping decision hierarchy, nutrient-dense alternative to the empty calo- Most operators say avocados are used on avocados are primarily bought based on ries found in other snack foods. The Aztecs a wide variety of items, from garnish in soup, display activity with eye-catching displays and were the first to take the huacatl — avocado as a main ingredient in salads, mixed into promotions.” in their dialect — and make what they called omelets, or as toppings for burgers and pizza. “The best bet for retailers trying to huacamolli (avocado sauce). Chefs are creative with uses for the avocado. increase avocado sales is to offer consumers That tradition continues in living rooms According to a study done by Chicago, IL- choices,” says Wedin. “Avocados sold in bags and sports bars, especially during football based Technomic, a food industry research convert a purchase of one to two bulk season and holidays such as Cinco de Mayo, company, avocados are posting large gains in avocados into a purchase of four to six.” New Year’s, Memorial Day, Fourth of July and
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Labor Day. Rossignoli advises retailers to place a display in the chip aisle or near the beer cooler, and cross-merchandise avocados with guacamole tie-ins like tomatoes, onions, and chili peppers. At Kings, Kneeland places bags of avocados near fresh tomatoes. Avocados are also used by Kings’ deli in salads and sandwiches. Robinson Fresh reports consistent sales throughout the year, but the two weeks when sales increase significantly is the week before the Super Bowl and Cinco de Mayo. “We saw sales volume boosts of 59 percent and 49 percent, respectively, and these trends are (L-R) PHOTOS COURTESY OF HASS AVOCADO BOARD likely to continue in the years to come,” says Rossignoli. vascular function,” says Eduardo Serena, Through December, Avocados from “A fresh avocado marketing director for APEAM, the Mexico’s “Hungry for Football” promotion contains naturally Michoacán, Mexico-based association of will run TV ads during college football games. Mexican avocado growers and packers. Eating AFM will also utilize social media, contests good fat and is avocados is said to also help lower cholesterol and deals to entice customers. For example, a cholesterol-free. and regulate blood sugar. customer buying three avocados will get a free “Retailers know avocados are good for can of Ro*Tel diced tomatoes. ‘Love One Today’ is a you, but they often don’t know why,” says Green Giant Fresh is part of the Box Tops non-branded nutrition Hall. Registered dietician Barbara Ruhs helps for Education loyalty program, encouraging AFM create user-friendly information consumers to buy participating products and message that appeals retailers can pass to consumers through to consumers and signage, newsletters and websites. Stats about good fats from the USDA back AGUACATES gives them a call up these claims. So do nutritionists and DE MÉXICO to action.” fitness experts. Keri Gans, M.S., R.D., author — Emiliano Escobedo, Hass Avocado Board of The Small Change Diet, loves the avocado for its vitamin B to relieve stress, and its Side Note Side nother segment of the population collect logos to help raise funds for schools. healthful, monounsaturated fats and fiber. On Avocados from Mexico (AFM) is According to Box Tops for Education 2014 HAB’s Love One Today website, the avocado Alooking to target is “the ever- research, 40 million households clip box tops, also gets passing grades from celebrity trainer evolving Hispanic consumers,” says reports Rossignoli. and nutrition expert Harley Pasternak. In his Maggie Bezart Hall, AFM’s vice president Tapping into the emotional connection book, The 4-Day Diet, Dr. Ian K. Smith lists of trade and promotion. “We are plan- between the consumer and the pleasure of food one-half small avocado as a healthful, low- ning authentic, robust Hispanic indulgence, the Irvine, CA-based Hass Avocado calorie snack and puts it in his weight-loss promotions to reach the ‘nueva Latina’ Board (HAB), which represents Hass varieties recipes. as an influencer that is important to the from all over the world, is promoting avocados Wedin has been working with avocados category.” with its Love One Today campaign, says Emil- for 41 years and the romance is still going AFM’s newly revamped websites in iano Escobedo, HAB’s executive director. strong. “I eat about three avocado halves a English and Spanish will launch prior to “A fresh avocado contains naturally good day. One half in the morning, another at the end of 2014. fat and is cholesterol-free. ‘Love One Today’ is lunch, and sometimes I’ll make guacamole. Beyond Central America, the U.S. and a non-branded nutrition message that The good fats in the avocado helps keep you Canada, AFM is looking to expand its appeals to consumers and gives them a call to feeling full and satisfied. I’m a calorie counter reach to Hong Kong and mainland action. People love the creamy texture and its so that helps me from snacking on things I China, as an extension of its Asia nutritional benefits give them permission to shouldn’t be snacking on.” program already established in Japan, love avocados,” says Escobedo. To raise aware- “Our current focus is to capitalize on the says Eduardo Serena, marketing director ness, retailers can feature the Love One Today recent popularity of bagged fruit, using for APEAM, the Michoacán, Mexico- logo in point of sale materials. Instant Redeemable Coupons (i.e. IRC’s),” based association of Mexican avocado says Mission Produce’s Austin. “We are growers and packers. “We hope to Advocating Avocados starting this effort by crossing avocados with diversify our international presence to The avocado is getting more attention for Frontera’s guacamole mix, which we take this amazing product beyond the its health benefits. “It supplies nutrients that distribute as well, but have plans to cross with initial markets.” pb contribute to healthy skin, teeth, bones, and many other items — both produce and non- it helps with muscle development and cardio- produce — in the future.” pb
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Sweet onions account for nearly a third of total onion category sales and are a staple in PHOTOGRAPHY BY DEAN BARNES consumers’ kitchens, so year- round availability is crucial. Staying Sweet All Year Long
Imports from south of the border bring continuous sales for sweet onions throughout the winter. BY ANTHONY STOECKERT
inter cooking is all about are a popular ingredient in some of the most Peru is coming in nicely,” says Kamer. He adds holiday celebrations and creative dishes.” the volume and size are adequate, and the hearty dishes such as soups, crop will be able to meet the demand for Wstews and roasts. Those This Year’s Forecast high-quality sweet onions expected for the fall dishes wouldn’t be complete Industry experts agree Peruvian sweet and winter selling season. without sweet onions, and this is the time of onions are the most prominent of imports Brian Kastick, president of OSO Sweet year for imported onions from south of the from south of the border. Onions, based in Savannah, GA, says the crop border. “Peru is the largest exporter of sweet has characteristics that make its onions While the sweet onions sold during the onions during the fall and winter months,” appealing to shoppers. “What’s nice is the spring and summer are grown in the U.S., the says Brady. “The flatter shape and yellow skin crop is fully mature, so the onions come in climate south of the border allows for sweet color of Peruvian sweet onions make them with better curing and a better overall quality onions to be sold in the fall and winter — when instantly recognizable as sweet.” in appearance,” says Kastick. “So from a domestic varieties, such as the Vidalia and Walla While experts say this year’s crop of Peru- quality and quantity standpoint, the Peruvian Walla, aren’t available. It’s important for vian onions got off to a slow start, the crop is onion season is off to a great start.” produce departments to carry sweet varieties promising, leading to high expectations. He attributes the slow start to colder because shoppers want them year-round. “This year’s crop looks great, and we’ll weather early in the growing season in Peru. “Sweet onions account for nearly a third have promotable volumes available to our “Just like with our springtime, sometimes it’s of total onion category sales, and are a staple retail partners through early February,” says cold for a week or two longer, that was the in consumers’ kitchens,” says Adam Brady, Brady. “The crop is the best quality we’ve seen case this year,” he says. “There was a little bit director of marketing for Shuman Produce in several years out of Peru. Both the overall cooler weather going into the spring, but now based in Reidsville, GA. “They’re valued for size and profile are average.” the weather turned to full springtime weather, their mild, sweet flavor and inherent versa- Marty Kamer, vice president of Keystone and it’s a lot of sunshine in Peru, a lot of good tility, making them a great choice in so many Fruit Marketing, Inc., headquartered in weather for curing onions. The temperature recipes. Consumers continue to support the Greencastle, PA, agrees the current crop is is between 82 and 88 degrees with lots of trend of cooking at home, and sweet onions promising. “The early sweet onion crop in sunshine. It’s perfect harvesting weather.”
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“We think the sweet onion will continue to grow in popularity and replace some of the onion uses that have traditionally been filled by yellow onions.” — Brian Kastick, OSO Sweet Onions
According to Brady, acreage stayed consis- Mexican or Italian cuisine. Approximately 15 tent from last season, allowing suppliers to to 18 percent of onions are processed for use provide retailers with consistent supplies in prepared food items such as salsa, soups, throughout fall and winter. and appetizers. Onions are also processed for fresh consumption — peeled, sliced, diced A Growing Trend and chunked onions — which also go directly Kastick says the current market trend for to the foodservice industry.” sweet onions is they are growing in popularity All of those uses, along with increased and are even replacing more traditional consumer awareness, lead to steady increases onions in some uses. “I think consumers are in demand for sweet onions. “For a period of seeing this renewed interest in cooking time, the available supply of authentic sweet healthy at home. People are using more sweet onions was lagging behind the demand,” says onions because there are so many applica- Kamer. “Today, a reliable, steady supply of onions on promotions for people to use in tions for them at home for cooking,” he says. year-round authentic sweet onions is avail- their homes for big family gatherings and “We think the sweet onion will continue to able to meet increasing demand.” social gatherings,” he says. grow in popularity and replace some of the Kamer adds sweet onions offer an oppor- Another option he makes note of is setting onion uses that have traditionally been filled tunity for incremental produce sales. “The up mass displays. “People buy with their eyes,” by yellow onions.” Those meal options health and flavor benefits are an easy sell for he says. “When they come into the store and include using fresh sweet onions in salads and consumers looking to cook tasteful food see a big display with flat, bright-colored for topping burgers. without salt and cholesterol,” he says. “Sweet sweet onions in the most prominent area of What makes them marketable yearlong is onions also provide opportunity for promo- the produce department, it’s a big mover. they’re also used for comfort meals during the tion and cross-merchandising with a variety Those onions go with winter dishes, so people winter. “That’s why the Peruvian and the of products in and out of the department.” see that big display and it encourages them to Chilean onion have such a home in the buy.” wintertime here in the United States,” he says. Marketing Sweet Onions He also encourages retailers to display “They’re nice, they’re sweet, and they add big Brady says Shuman has a year-round onions in bulk displays and five-pound bags. flavor to all those wintertime recipes such as: onion program that allows retailers to stock “Five-pounds are perfect for the holidays, and crock-pot dishes, pot roasts, stews, and soups. onions for customers 12 months a year. a lot of people who normally wouldn’t buy a All the things people like to eat at wintertime Autumn and winter offer lots of marketing 5-pound bag will do so for Thanksgiving and and the holidays. Sweet onions are perfect opportunities. “Sweet onions are perfect for Christmas to take care of those cooking needs because all that water content in the sweet comfort foods during the winter months as during that time frame,” he says. onion just infuses itself in the recipe.” well,” says Brady. “Dishes like French onion soup and a variety of stews are enhanced by Beyond The Peruvian A Big Part Of The Fresh Movement the flavor of sweet onions. Maintaining a According to industry insiders, Chile and According to Keystone Fruit’s Kamer, year-round supply of an instantly recogniz- Mexico also are players in the sweet onion celebrity chefs, cooking shows and media able sweet onion in the produce department equation. Kastick says Peru is the leader reports about food trends raised awareness of is a proven winner in increasing overall ring at during autumn, and Peruvian onions are the benefits of eating fresh fruits and vegeta- the register.” exported to the U.S. through January. “Chile bles. Those efforts helped sales of sweet Kamer notes onions have been marketed will start in January and go through onions. “Onions are a big part of this aware- in the U.S. for more than 100 years, and are February,” he says. “Mexico will start, usually ness as a staple ingredient, which naturally one of the most consumed produce items in at the end of January and the beginning of resonates through to increased consumption the world. He adds the average annual onion February.” He adds that the type of sweet and higher sales numbers at the store,” he per capita consumption in the U.S. is 21 onions consumers look for — flat in shape says. pounds. “That’s a tremendous opportunity with lots of water similar to the Vidalia — Another factor in the appeal of sweet for consistent sales,” he says. come from Peru in the fall and Chile in the onions is their versatility. “Onions are most OSO Sweet Onions’ Kastick says the dead of winter. “Those are the onions people often used to enhance flavors in a wide range biggest marketing opportunity comes via the associate with sweet onions,” he says, adding of recipes, including salads, soups, stews, and fall and winter holiday season: Thanksgiving, Mexican onions don’t quite have the sweet- casseroles,” says Kamer. “Onions are used as a Christmas, Hanukkah, New Year’s and other ness of the Peruvian and Chilean varieties. garnish in sandwiches, wraps and in classic winter occasions. “It’s a chance to put sweet Kamer adds that imports from Peru run
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through the middle of February, then buying options and ensure sales lift.” Mexican onions start in February through The holidays play a key role in promoting early May. Additionally, onions from other imported sweet onions. Brady notes the locations could be on their way. “We have season is the perfect time to take some steps to ongoing R-and-D projects in a variety of increase sweet onion sales because they are other countries throughout South and available throughout the holiday season and Central America, even Europe and others,” are perfect for fall and winter meals. “Sweet says Kamer. “Future availability of authentic onions are incredibly versatile and can be sweet onions from these emerging markets is cross-merchandised in so many great ways to yet to be determined.” improve sales of all of the products involved, and the winter months are fantastic for Promotional Opportunities bringing together a variety of products Kamer says fall and winter are an ideal throughout the store for holiday gatherings,” time to encourage impulse purchases of he says. “A display including lettuce, tomatoes imported sweet onions by building large and sweet onions is a great start for a salad displays. “Sweet onion usage is very diverse, promotion for the dinner table; or place sweet and cross-merchandising opportunities are onions alongside avocados and jalapenos to limitless,” he says. “Many retailers strive to encourage building the perfect guacamole for take advantage of cross-merchandising by the big game.” strategically placing onions and products that Kamer says Keystone will be making the can be utilized with sweet onions. Due to most out of this busy onion season. “We have increased demand of sweet onions, many many dynamic, customer-specific promos retailers found it advantageous to carry bulk planned for this fall and winter,” he says. or loose jumbo sweet onions as well as a “Those include promotions for tailgating at consumer bag of medium sweet onions. football games, holiday cooking, and easy Endcaps, standalones, value-added product crock-pot meals.” Keystone’s promotions offerings, multi-size strategies and consumer include displays with tips on how to include bagged displays offer consumers multiple onions in recipes and in-store demos. pb
64 PRODUCE BUSINESS • NOVEMBER 2014 Bananas_Layout 1 10/31/14 11:48 AM Page 1
MERCHANDISING REVIEW Bananas – A Volume Leader Taken For Granted
Give this popular fruit space, and sales will grow. BY BOB JOHNSON
According to sources, syndicated data shows that banana sales typically make up approximately 6 percent of
PHOTO COURTESY OF TURBANA total produce dollar sales and are much higher in terms of pounds.
ananas are among the produce Two Colors “We ship out two levels of ripeness, what we leaders in volume and dollar sales, Consumers quickly, easily and accurately call a green and a break,” says Jeff Cady, produce but this mature fruit can increase judge the ripeness of bananas by looking at the and floral manager for Tops Markets, Bits performance if displayed more color of the fruit. Williamsville, NY. proudly. There is a color scale for bananas, ranging Because consumers have different ideas for “Syndicated data shows that banana sales from one, which is all green, to seven, which is when they will use the fruit, it is advisable to typically make up approximately 6 percent of yellow flecked with brown spots. have at least two displays with clear differences total produce dollar sales and are much higher “Somewhere in the four-color range is a in the color of the bananas. Many retailers are in terms of pounds. However, bananas are good color at retail. The fruit is beginning to following this practice. rarely given space analogous to their share of show a more pronounced break and is more After displays of two or more colors of sales,” says Dionysios Christou, vice president yellow than green,” says Marion Tabard, bananas are set up, they must be scrupulously of marketing at Del Monte Fresh Produce, director of marketing at Turbana Corporation, culled and filled. Coral Gables, FL. “Experience shows attractive, Coral Gables, CA. “One study has shown most stores typically large and full displays drive impulse sales.” “Consumers get attracted by bananas that have less than one day’s supply of bananas on The successful formula is simple — develop have what they consider the right color, the size the shelves. To ensure their fair share of banana eye catching, well-attended displays of bananas or width and lack of sugar spots or bruises,” says sales, stores need to either increase space or in two states of ripeness, and also include easy- Rob Adams, director of marketing for Char- make sure to refill displays on a timely basis,” to-find organic fruit, and add specialty varieties lotte, NC-based Chiquita Brands. says Del Monte Fresh Produce’s Christou. if the demographic warrants. “The recommended color to sell a banana With bananas beautifully displayed, But whatever mix of banana products suits depends on how soon the bananas are to be merchandising comes down first to how the store, to perform well the section has to consumed,” says Mark Levin, chief executive of much space you are willing to give your best- look good. M. Levin and Company, Inc., Philadelphia, PA. selling fruit. “The first and most important thing for “If the bananas are going to be consumed right “You can never devote too much space for retailers to remember is to keep the banana away, they should be a full yellow. If the bananas bananas,” says M. Levin and Company’s display fully stocked,” says Bil Goldfield, are going to be eaten over the course of a few Levin. “They are the No. 1 selling fruit in the director of corporate communications at Dole days, the consumer probably wants to purchase United States.” Fresh Fruit Company, Monterey, CA. “Your bananas that are yellow with green tips, to display cannot look like it’s been picked prolong their shelf life. In reality, stores should Variety Can Be The Spice Of Bananas through; maintenance is key.” carry both varieties to satisfy all preferences.” The category is generally straightforward,
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MERCHANDISING REVIEW How ‘Green’ Are The Bananas? ing. d 15 he one new wrinkle in merchan- I’m convinced.” Coral Gables, FL. dising this mature category is the The price differential is low enough that The demographics of the store, last Timportance of organic bananas, and most major supermarkets carry organic however, still make a great deal of differ- ve the nascent demand for fair-trade bananas bananas as a regular item. ence in demand for organic bananas. that guarantee the wages and working “The demand for organic bananas is “We carry organic all the time,” says ple.” conditions of the workers. growing. The price difference is pretty small, Jeff Cady, produce and floral manager for “As consumers are becoming more around 15 percent, and it’s been growing so Tops Markets, Williamsville, NY. “They are aware of the chemicals used in agricul- much the last three years,” says Mayra popular in the affluent stores. We carry ture, organic bananas — as well as the Velasquez, chief executive of Organics them in other stores, but they are most whole organic category — are becoming Unlimited in San Diego, CA. “It’s huge. The popular in the affluent neighborhoods.” more important,” says Marion Tabard, large retailers have decided they want Even as they penetrate every area of director of marketing at Turbana Corpora- organic bananas as a staple.” the country, however, organic bananas still tion, Coral Gables, CA. Even a 15 percent premium only do not reach some independent stores However, there are still many amounts to a few pennies per pound serving customers of relatively modest consumers unwilling to pay more for because bananas are so inexpensive. means. “We don’t have the clientele for organic bananas. “Retailers still use bananas as a loss organic,” says Jim Reed, produce manager “The most common type of banana leader to draw traffic into their stores,” says at Harry’s Supermarket, Pittsfield, MA. sold is conventional,” says Mark Levin, Turbana’s Tabard. “Bananas offer a great While organic became a staple cate- chief executive of M. Levin and Company, value to consumers. Typically, we see gory with some people, fair-trade bananas Inc., Philadelphia, PA. “Certain customers banana retail prices vary between 49 and are appealing to consumers ready to who choose to eat all organic products 69 cents per pound for conventional fruit, spend a little more for improved working will choose to eat organic bananas. The depending on the region in which the conditions. organic bananas are a bit more expensive, retailer is located.” “Fair trade means the work is docu- therefore only certain buyers will be inter- According to Velasquez, organic demand mented, and the workers are paid a wage ested in them.” remained level during the recession, and equal to or above the local minimum There is also a small but growing exploded the past few years as the largest wage,” says Calabrese. “It’s common for consumer base willing to pay a few cents retailers decided they need to always have work to not be documented, and for the more for fair-trade bananas. organic bananas. workers to be paid less than the local “Fair-trade produce goods are up 15 “In the United States, stores usually carry minimum. Another of the standards of fair percent,” says Michela Calabrese, a conventional banana, a secondary trade is a minimum wage and safe and campaign director at Interrupcion Fair conventional banana and an organic dignified working conditions. Safe Trade, New York, NY. banana,” says Velasquez. “It’s good to working conditions include having protec- “Ever since I went to a conventional display the organic bananas with the tive clothing and protective gloves. In banana farm, I decided to dedicate my conventional until people know you have Ecuador I saw a lot of aerial spraying on professional life to growing the supply organic bananas.” workers with no protective clothing, or and demand of fair-trade bananas,” says Interest in organic bananas has reached rinsing chemicals off without gloves.” Calabrese. “The workers on one farm said the point that the largest producers are The battle for the hearts, minds and they used to get paid $15 a week, but on looking for enough land and water to banana dollars of consumers could come a fair-trade farm they get $25 to $30, supply the demand. down to whether the tremendous which is the difference between putting “Sales of organic bananas have been economy of this fruit or the desire to food on the table or not; and they don’t increasing steadily during the past year. If support social justice carries more weight. have chemical burns and rashes on their this trend continues, we expect to reach a “People are accustomed to a relatively bodies anymore from pesticides. If Amer- tipping point where current supply sources steady banana price, which is one of the icans knew the truth about the real costs will be unable to meet the demand,” says reasons why bananas remain one of the on the people and the communities, they Dionysios Christou, vice president of most widely bought fruits in the world,” would stop buying conventional product, marketing at Del Monte Fresh Produce, says Levin. pb
and retailers can get by with two colors of little more willing to experiment,” says Dole’s “There has been growth in specialty bananas conventional bananas, plus a prominent display Goldfield. “The baby bananas are extremely such as plantains, reds and manzanos. of organic bananas; but some of the unusual- popular. It’s a good size for kids’ lunches, and Consumers developed more sophisticated taste looking specialty bananas appeal to certain it’s a sweet banana, which kids like. The reds profiles, and as trends in healthy eating and demographics. are also popular, but there is a little bit of a interest in new tropical foods continue to grow, “There has been a growing interest in the learning curve.” so does the demand for exotic and specialty specialty varieties as people have become a This may be an area worth watching. bananas,” says Del Monte’s Christou.
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MERCHANDISING REVIEW
Stores may find it advantageous to carry a couple of these specialty bananas in addition Fruit Quality Is A Gas to the three basics — ripe, green and organic. “We carry five or six SKUs of bananas,” says Tops Markets’ Cady. efore bananas reach the market, says Karen-Ann Christenberry, manager In the Northeast it is also particularly conditions in the ripening room go at American Ripener Co., Charlotte, NC. Ba long way toward determining “We sell the ethylene generators and important to give consumers the option of bagged bananas. how long they will maintain their quality. the liquid ethylene you put in them. It “You will find many retailers and whole- Bananas are treated with ethylene jump-starts the process. It’s pretty salers in the Northeast who prefer bags over until their own ethylene kicks in, this simple. You use a quart for a standard nakeds. The trade is very accustomed to bags usually takes 24 hours, and then one load ripening room.” — specificallly in New York,” says Turbana’s ripened under closely watched environ- This part of the ripening process, Tabard. “Also, most club stores sell bananas in mental conditions. according to Christenberry, is best done 3-pound bags.” “The most common mistake is not between 59° and 65° F. Some major retailers have taken the bagged giving the fruit adequate time to ripen,” “There are so many factors you want product nationwide. says David Byrne, vice president of to get right in the fruit ripening “Bagged bananas originated in the North- sales for Thermal Technologies, Blythe- process,” says Akins. “It starts with fruit east to protect the fruit from cold weather, to wood, SC. “People are in a hurry. If being harvested at the right level of retain freshness and to prevent consumers from you ripen slower, you typically get a maturity. Most importers know what to breaking the banana clusters at the display,” says longer shelf life. You need to give the look for in maturity.” Christou. “However, today we find a number of process time; generally speaking, you “Ethylene is always used, but that’s retailers and club stores across the country should give at least five days in the just one of the days,” says Byrne. choose to purchase bagged fruit.” ripening room.” “Temperature and humidity are the keys Because nearly everyone is familiar with Some ripeners prefer to give the fruit to the other four days.” bananas, merchandising can gain energy by a little more or less time to ripen, but For many retailers, this process has emphasizing its many uses. failure to hit the sweet spot means to result in fruit that meets not one but “The banana market penetration is very either the fruit will be too green or it two sets of specifications. high across all demographics,” says Tabard. will fail to last on the produce depart- “Some retailers like to ship all the “When it comes to marketing bananas, it’s ment shelf long enough to give the same color; other retailers like a more about positioning bananas as an answer consumer five or six days. greener and a riper SKU,” says Byrne. to different needs and occasions. For example, “Most ripeners take five days, but Small independent stores, however, if you’re active, a banana is a great snack, a some take four days, and some take as may not have large enough orders to natural energy bar, regardless of age or long as seven days,” says Greg Akins, bring in two or more colors. ethnicity. If you’re looking for convenience, president of Catalytic Generators Inc., “I don’t have the volume to order bananas fit perfectly in a lunchbox, whether Norfolk, VA. different levels of ripeness,” says Jim you are taking it to grade school or to your The gassing stage is the shortest and Reed, produce manager at Harry’s corporate office.” may be the simplest part of the ripening Supermarket, Pittsfield, MA. “I try to “We know that a big consumption of the process. bring bananas in green, so they’ll turn. product is during breakfast,” says Chiquita’s “Bananas have ethylene inside them, I could end up with three different Adams, “but we are witnessing — within the and that’s what makes them ripen,” colors on the floor.” pb past five to eight years — a growth in consumption as a snack and as a base for other meal preparations.
Cross-Merchandising ingredient for energy-packed smoothies.” cesses in place to protect the fruit during the According To Usage They can even be effectively displayed at voyage from the tropics, most of the damage The many uses for bananas suggest many high-traffic areas outside Produce. “Placing happens in the last 20 feet — from the back possibilities for cross-merchandising. bananas in displayers in the front of retail room to the shelf and on the shelf itself as “Cross-merchandising is an effective way stores is very effective, as most people will consumers touch it and select their purchase,” to grow sales in the category by increasing grab a handful of bananas to put in their cart says Chiquita’s Adams. “Innovation ranges impulse purchases. When cross-merchan- as soon as they walk in,” says Levin. from continuous prototyping and testing as dising, retailers have the opportunity to “Bananas have always been a top-selling well as support for the floor staff education increase not only banana sales but also sales fruit,” adds Levin. “In terms of cross- for better handling.” of related products,” says Christou. “Different merchandising bananas, an effective market “It’s important to recognize that our data ideas for cross-merchandising include pairing technique is to place a banana displayer in the shows banana quality projects the expected bananas with strawberries, other tropical cereal aisle. Many people will grab a bunch of quality of the whole produce area,” says fruit, cereal, salads, chocolate dips and peanut bananas to enjoy with their breakfast cereal Adams. “The location of the banana table is butter. Smoothies are becoming a big part of selection.” determinant then to create best full-category healthy lifestyles and bananas are a delicious “While we as manufacturers have pro- synergies. pb
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MERCHANDISING REVIEW Sustaining Citrus Profitability
Merchandising that educates and promotes citrus is a recipe for success. BY KEITH LORIA
According to the USDA’s annual report, U.S. citrus production for the 2013-14 season totaled 9.4 million tons.
.S. citrus production for the 2013-14 for the Florida Department of Citrus (FDOC), seedless and easy-to-peel fruit. This amount of Useason totaled 9.4 million tons, says the organization is charged with the marketing investment is unheard of for the according to the USDA’s annual report. marketing and promotion of Florida Citrus citrus industry.” While fall and winter months remained products, which includes oranges, tangerines Robinson Fresh, the produce division of strong in citrus sales, the spring and summer and grapefruit, as well as orange juice and C.H. Robinson, provides fresh, high-quality took a tumble, as retailers saw declines in sales grapefruit juice. citrus items packed in the well-known and for those months. “The FDOC aims to raise awareness of the respected Tropicana brand. These items “Without question the summer months are great taste of Florida citrus and its role in a include lemons, limes, grapefruit and oranges, the most difficult to sell citrus because so many healthy diet year-round,” says Wiard. “By which are all available year-round to retail, other seasonal options are available, such as working with retailers and restaurants, the wholesale and foodservice customers. cherries, melons and stone fruits,” says Chuck FDOC is able to highlight unexpected ways to “Today, consumers are continually looking Yow, director of U.S. sales and business devel- enjoy Florida citrus — inspiring consumers to their retailer to guide their eating experi- opment for Capespan North America, to incorporate it into their diets.” ence,” says Gina Garven, category insights headquartered in Gloucester, NJ. “We work Jasmine Hodari, vice president of manager at Robinson Fresh, headquartered in very hard at promoting summer citrus.” marketing for Paramount Citrus, headquar- Eden Prairie, MN. “Robinson Fresh works with Citrus consumers are loyal to the category tered in Delano, CA, says the company chooses customers by providing comprehensive solu- and want to purchase year-round, plus keeping the best citrus for each market to ensure the tions through data and category insights, citrus in the main display areas keeps the fringe freshest, best-tasting citrus is available to merchandising and marketing support, as well consumer buying all year, which are additional customers and easy for retail partners to as a consistent supply.” sales in an already strong category. promote citrus all year long. Joan Wickham, manager of public relations That’s why it’s vital citrus companies put “We also invest heavily in marketing to help for Sunkist Growers, based in Valencia, CA, their best effort into not only growing, but also pull popular citrus varieties through the says the company markets millions of cartons creative packaging and education about the channel,” says Hodari. “For example, to of premium fresh citrus internationally each fruit so the category captivates consumers’ support our recently launched Mandarin year to 40 countries. attention in store. Consumers will think about brand, Wonderful Halos, we have slated to “With more than 3,000 grower members in citrus more when they see a good piece of fruit spend a record $100 million in the first five California and Arizona, the Sunkist coopera- and wonder where it came from because it years of the brand as part of an integrated tive reflects the values and legacy of its 120-year stands out. consumer campaign to market the ‘pure good- history: multi-generational family farmers Tammy Wiard, director of retail marketing ness’ and uniquely delicious taste of the sweet, committed to growing the highest quality
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citrus, being responsible stewards of their land and dedicating themselves to innovation,” she says. “Sunkist offers more than 40 varieties of premium quality, fresh citrus year-round, including oranges, lemons, grapefruit, special- ties and organics.” Sunkist employs a variety of marketing programs to keep citrus relevant year-round to consumer, retail and foodservice audiences in its domestic and export markets, including usage ideas and tips, seasonality and nutrition. “Education should be a primary objective for merchandising citrus,” says Wickham. “A recent study found consumers are often confused when shopping in the produce
department. As new items are introduced all PHOTOGRAPHY BY DEAN BARNES the time, retailers need a method of ensuring consumers can easily find the new items and character, grower visits and in-store sampling displays, sales will follow,” says Paramount describe and explain unique taste, nutrition or programs,” says Yow. “In addition, we can Citrus’ Hodari. “In fact, they did; sales recipe usage. Displays and header cards can partner in offering secondary display options increased two to five times with a re-purchase provide solutions to better educate such as popup bins.” rate of more than 30 percent. The results were consumers.” Yow also says features of other growing so promising that we will be launching our citrus products are a great way to grow the Wonderful Sweet Scarletts nationally this All Year Long categories. For example, by featuring Cara season [November to April].” Industry experts agree the first step to Caras, Mineolas and South African Star Ruby The biggest challenge with citrus sales — as success is providing quality year-round so the grapefruit, the consumer expands his/her with any fresh produce item — is consumer has positive experiences. citrus purchasing habits. weather. When the product cannot be Citrus, namely limes, is the lifeblood of “These can be even more successful with harvested or growing is delayed due to weather Vision Import Group, doing business in River cross-merchandising options in conjunction conditions, this limits the amount of fruit Edge, NJ. with recipe cards to give consumers new available. “Our focus is to be in constant collabora- choices for their home dining experiences,” he “Educating the consumers about what is tion with our growers in Mexico and put out says. going on with the product can help. We can the best box of limes we can,” says Raul According to FDOC’s Wiard, a wonderful involve the customer in the conditions so they Millan, executive vice president. “We also have aspect of Florida citrus is it’s a great choice any know why the price is higher or why there is a lemon program that runs the length of the time of the year. less available,” says Vision Import Group’s Mexican season.” “While fresh produce is available in season, Millan. “It is also our job to source properly Capespan’s Yow says the company provides 100 percent Florida orange juice and grapefruit and get creative to make sure we always have citrus year-round, shipping from California juice make excellent beverages year-round and product on the shelves. This past year we saw during its season and transitioning to summer are not just limited to the breakfast table,” says the scarcest lime market in history; we are citrus from South Africa and Chili so there are Wiard. “Both can be used as marinades, proud to say we provided fruit to our no seasonal gaps. The company also provides smoothies and cocktail ingredients.” customers throughout that time.” Clementines from South Africa, Peru and According to Garven, Robinson Fresh’s Chile, and then transitions back into Cali- Challenging Times research shows consumers want to know when fornia, usually around late October. All marketers are challenged year-round items are in peak season and are looking to “In regards to keeping citrus on their with driving citrus sales and keeping the fruits their retailers to educate them on the avail- minds year-round, we offer various forms of top-of-mind with consumers. In order to ability of these items year-round. POS, merchandising and marketing tools in succeed, they need to continuously think of “The summer months are often the biggest each season that helps our customers maxi- creative ways to promote the citrus category, challenge for citrus sales due to the wider mize sales and educate their consumers,” says whether it’s through a national TV ad assortment of other seasonal fruits,” she says. Yow. “POS materials can be very useful to campaign, in-store promotions, retailer “In order to keep merchandising relevant, educate consumers as to where the citrus merchandising, branding, public relations retailers can focus on promoting items like comes from that time of year and the efforts or any other marketing function. lemons and limes, which are often popular for strengths of growing regions.” “For example, grapefruit sales have been grilling.” Secondary displays coupled with sampling declining over the years. So, what can be programs are also important to both consumer done? Based on a recent Midwest test, we Holiday Happenings education and confidence. found if you develop a consumer branded When holidays come around, it’s critical “We participate with our customers that Texas red grapefruit (Wonderful Sweet Scar- retailers promote citrus and get people accus- choose to offer these programs with ‘King letts, in our case) that tastes great, and arm the tomed to thinking about the fruit during Citrus,’ the South African citrus industry lion retailer with the tools to build attractive these times.
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Vision Import Group developed a “Party merchandiser for New Seasons Market, based Pack” of limes specifically to aid retailers in in Portland, OR, says specialty citrus items — holiday promotion. It is a 2-pound resealable, Kumquats, Meyer lemons, Cara Cara Oranges breathable bag with its Mojito label. and Ojai Pixie Tangerines — sell well “This Party Pack allows consumers to get November through March, but other times can plenty of fruit at a great price,” says Millan. “The be a challenge. labeled packaging allows for retailers to create “They peak in early January and start displays, as well as a sale to promote them.” trailing off by mid-March,” says Fairchild. Daily and weekly sales indicate almost all “These are great produce items to keep nationalities use citrus in one way or another customers interested in citrus at a time of year in their cooking. that doesn’t always have a lot of draw.” “What makes the difference is the A unique way New Seasons highlights these quality. We found if quality product is avail- (blood) oranges, Minneola Tangelos, items is with an annual citrus festival held able, they will sell,” says Millan. “We also have Pummelos and Cara Cara Navel oranges.” every January, where consumers can sample up at least one holiday or event each month where Also, Sunkist offers retailers decorative to 25 different citrus varieties. citrus can be promoted for either food prepa- holiday cartons to capitalize on seasonal Millan says retailers should build a recipe- ration or celebratory drinks. Retailers can consumer excitement around oranges, which based display each week that includes citrus to upsell citrus during these times.” have cultural significance in many cultures. show consumers new ways to cook. Seasonal display bins are a great way to take “This can be done in the produce aisle or advantage of the holidays because they suggest Cross-Merchandising Matters even in the meat section,” says Millan. “Have a to consumers a reason to purchase. There are many opportunities to cross- small display with all the produce items needed “Another great way to capitalize on sales is merchandise citrus, and consumers are for the recipe. Knowing space could be an for retailers to offer two sizes of fruit — extra- looking to retailers for ways to bring excite- issue, think about a fresh marinade or salad large and traditional size,” says Capespan’s Yow. ment to their meals. dressing, using the juice from various citrus “The extra sizes can be promoted for fruit “Staple items such as lemons and limes are items. This allows for cross-merchandising, bowls and fruit baskets during certain holidays. easily overlooked in the produce aisle, so posi- citrus promotion and showing the consumer In-store made fruit baskets featuring a specific tioning them next to complementary items a new way of using our products.” holiday are also a great way to sell more citrus may give consumers ideas about how they can Capespan has had good success with its and other produce.” incorporate them into meals,” says Robinson pop-up bins that show the colors of citrus and Paramount Citrus’ Hodari agrees holidays Fresh’s Garven. “For example, placing limes also tell the story of the product and country of are a great time to promote citrus. nears the beverage section or offering bagged origin. “Our Halos mandarins and Sweet Scarletts items on endcaps near checkout lanes are great “It is also good to use side stacks, wooden Texas red grapefruit are available during ways for retail customers to work through display cartons, high graphic boxes and case Thanksgiving and Christmas,” says Hodari. additional inventory and drive incremental stacks in front of displays, allowing fruit to “Retailers can utilize the high-graphic POS and sales through impulse buys.” overflow from the section giving an abundance display-ready packaging to build large displays Breakfast products provide optimal cross- of fruit appearance,” says Yow. “Citrus items are not just in produce, but also in secondary loca- merchandising opportunities, but there are also great to use with featured items, such as tions like the store’s entrance.” many more ways to highlight Florida citrus, apples, for color breaks and a bright fresh FDOC’s Wiard notes Florida citrus is an Wiard believes, saying unexpected combina- produce section appearance.” especially popular option for brunch-centered tions, such as coupling Florida citrus with In Garven’s mind, demonstrations on new holidays, such as Mother’s Day and Easter. protein or back-to-school lunch staples, can citrus varieties or general consumer educa- “To take advantage of these spikes in sales, provide new ideas and inspiration. tion on how to use and prepare citrus is a retailers should highlight the myriad ways — Recipe cards are another great cross- good way to drive consumers’ fruit dollar traditional and unexpected — Florida citrus merchandising technique. spend toward citrus. can be used in a meal,” says Wiard. Studies done by Paramount Citrus have “Merchandising citrus items in bins is a Sunkist’s Wickham shares that the holiday found grapefruit consumers are great citrus unique technique and allows retailers to season is also peak citrus season, and in her buyers and typically purchase Mandarins in display items throughout the store as a tie-in opinion, nothing brightens festivities like the same basket. “That’s a great opportunity to with other departments,” says Garven. “For colorful, delicious citrus. cross-merchandise Sweet Scarletts and Halos,” example, merchandising citrus items near cold “To capitalize on the season, retailers says Hodari. medicine during cold and flu season helps should focus on education and usage. Sunkist Sunkist’s Wickham says secondary displays consumers remember to purchase those items, offers packaging, displays and header cards provide creative ways to merchandise citrus as they are often popular accompaniments.” that provide consumers with taste profiles, outside of the produce section. For example, nutritional messaging, usage ideas and QR since citrus pairs impeccably well with seafood, Marketing Matters codes that lead to mobile recipe content,” says displaying citrus in the seafood section offers Having an appropriate mix of stock is a Wickham. “By providing this information, you convenience and inspiration to consumers. great way to maximize citrus sales all year long. encourage consumers to try new produce According to Robinson Fresh’s Garven, the items they might be unfamiliar with — like Out-of-the-Box Thinking right number of SKUs depends on the format seasonal specialty citrus varieties such as Moro Jeff Fairchild, lead produce buyer and of the store, available space and seasonality.
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“Another innovation to the category that winter months, there is delicious citrus vari- nutrient-rich superfood. is experiencing growth is merchandising eties in-season during the summer and fall.” An online grapefruit brochure with more value-added citrus, including options that are For example, Valencia oranges, in season information about the health and wellness cut, sliced or snack-sized,” says Garven. from February through October, are known benefits of grapefruit is available on Sunkist’s “Retailers can move to smaller pack sizes and for their perfect balance of sweet and tart website. reduce SKU mix in the summer season when flavors. As excellent juicing oranges, Sunkist Citrus is a versatile category that offers citrus sales are slower than usual. This will is encouraging consumers to try fresh juicing consumers many convenient uses and health help to keep price points more reasonable and at home — capitalizing on the current health benefits. Items like oranges, grapefruit and relevant amongst traditional summer stone trend. easy-peel citrus are packed with vitamin C fruit and berries.” “Lemons are also in season during the that helps keep consumers healthy during the According to Hodari, Paramount Citrus is summer months. Tart and refreshing, lemons cold and flu season. Additionally, in the spring known for being the first to transform are the perfect complement to summertime and summer, consumers can utilize lemons commodities (Mandarins and Texas Red dishes and are also wonderful for entertaining,” and limes as beverage garnishes. Grapefruit) into healthy brands consumers says Wickham. “With mixology becoming Let’s face it, consumers are growing more have come to know, love and trust. This has more popular in restaurants and bars, many health-conscious and citrus is one way for propelled the company to a leader in the field. consumers are now trying artisan cocktail them to have healthy options readily available. “Promotions are an effective tool for making at home. From unique lemonades to Furthermore, citrus is very versatile and can be retailers,” says Hodari. “In-store, consider mixed drinks, Sunkist is developing fun cock- incorporated into many different meals, snack building prominent displays in areas not just tail recipes consumers can make at home to or usage occasions throughout the year. Citrus in produce, but also in other areas, such as the ‘zest up’ their summer entertaining.” 12 months a year is a mantra all in the industry entrance and checkout. Also, utilize ads to Grapefruit is another delicious summertime need to get behind. promote citrus.” citrus fruit. Research has indicated Millennial “Citrus is a very versatile fruit, which is a “Citrus is an incredibly versatile produce women are increasing grapefruit consumption, delicious snack, ingredient — and even great item and by educating consumers about usage and Sunkist is leveraging this trend by intro- for a number of household uses — from décor ideas and tips that are seasonally relevant, ducing modern uses for grapefruit with the to cleaning,” says Wickham. “Providing retailers can drive sales for citrus all year “Not Your Mother’s Grapefruit” campaign, consumers with usage ideas and tips can help round,” says Wickham. “While peak citrus aimed at reigniting the fruit’s popularity by retailers show the relevance of citrus all 12 season in California and Arizona is during the educating younger consumers about this months of the year.” pb
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MERCHANDISING REVIEW THE TOP 10 WAYS TO SELL PERUVIAN ASPARAGUS
Focusing on a few merchandising tips can profitably impact winter sales. BY JODEAN ROBBINS
According to the Peruvian Asparagus Importers Associa- tion, in 2013, Peruvian asparagus represented more than 45 percent of the total U.S. import dollar value.
eruvian asparagus has become a “October is peak time,” says Walter Yager, high-traffic areas and merchandise it to appeal significant contributor to the chief executive of Alpine Fresh in Miami, FL. to customers. This generates impulse sales.” overall category. “In 2013, the U.S. “Retailers should really focus on promoting Pimported more than 403 million from September to November.” 1. Refrigerate Properly pounds of fresh-market asparagus Chloé Varennes, marketing manager at Successful asparagus sales start with cold of which Peruvian asparagus represented more Gourmet Trading in Redondo, CA, agrees the chain maintenance. “We recommend main- than 47 percent of the total world supply,” says time is right. “This year, Peru’s production taining the cold chain to enhance quality and Priscilla Lleras, coordinator of the Peruvian curve is expected to follow the same trend as shelf life,” says Eagle. Asparagus Importers Association (PAIA). “In last year with peaks in late September through “Keeping the refrigeration in the backend 2013, Peruvian asparagus represented more early November. This is the best time for at 32 degrees to 26 degrees Fahrenheit helps than 45 percent of the total U.S. import dollar retailers to promote along with the Thanks- extend shelf life and quality of asparagus,” value — a significant contribution.” giving holiday.” explains Varennes. “Keeping the asparagus While Peru’s season can be considered Retailers who merchandise well reap ample refrigerated while merchandising also extends from June to January, the late fall and winter rewards. “Peruvian asparagus is a key item,” the quality of the product helping lift sales.” months are prime for promotion. “We grow, says Dick Stiles, director of produce and floral Peter A. Warren, Ayco Farms import import and distribute asparagus from Peru for Redner’s Markets Inc. in Reading, PA. “It’s director in Pompano Beach, FL, agrees it’s all year round,” explains Charlie Eagle, vice pres- an item you can merchandise to generate about temperature. “Asparagus must be kept ident business development for Southern more sales of other items. If merchandised cold and at 98 percent humidity. The most Specialties in Pompano Beach, FL. “But the correctly it increases ring.” common mistake retailers make is not main ‘season’ for asparagus from Peru is mid- Paul Kneeland, vice president of produce, keeping asparagus cold or wet enough.” September to December with the highest floral, seafood and meat for Kings Food However, retailers can take exception to volume in mid-October. There is also Markets in Parsippany, NJ with 25 Kings and refrigeration while displaying volume promo- seasonal availability from April to August six Balducci’s stores, agrees. “Good merchan- tions but with limits. “It’s acceptable to not with lighter supply than the fall months.” dising is very important. You have to put it in refrigerate when using ice or when running a
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“For holidays like Thanksgiving, and when asparagus has a good price point, display it on an island by itself. This gives the product more visibility, and it will lift sales. — Chloé Varennes, Gourmet Trading
very hot ad,” says Warren. “If it moves fast it ways to increase sales,” reports Lleras. won’t need the refrigeration. “For holidays like Thanksgiving, and when “Stores should go off refrigeration only asparagus has a good price point, display it on when doing end cap promotion,” advises an island by itself,” suggests Varennes. “This Yager. “But they should not display more than gives the product more visibility, and it will a day’s expected sales.” lift sales. One of the most important things to PHOTO COURTESY OF GOURMET TRADING do when merchandising asparagus is to 2. Rotate, Hydrate, Don’t Mist display it at eye level.” Retailers should keep asparagus hydrated Frequent promotion pushes product. “The regardless of refrigeration. “If a retailer is key is to be on a promotion cycle,” suggests selling a quantity of bulk asparagus over a Alpine’s Yager. “Stores should be doing some- short period and prefers to have the product thing either every other week or every three free standing, we suggest hydrating in about a weeks.” half-inch of cold water,” recommends Eagle. “We will do a lot of merchandising 4. Focus On Nutrition throughout the store out of refrigeration,” Promoting the nutritional aspects of says Redner’s Stiles. “We use racks where the asparagus also drives sales. “More and more asparagus sits in water. We turn it fast enough consumers are seeking easy to prepare, nutri- so this works for us. However, we always tious and delicious options for their tables, and ensure we put it in refrigeration at night and Peruvian asparagus fills all those requirements,” PHOTO COURTESY OF SOUTHERN SPECIALTIES while it’s in the back room.” says Lleras. “They are concerned about weight However asparagus should never be maintenance as well as health aspects, both during Easter, Thanksgiving and at misted. “The most common mistakes when great areas to promote for asparagus.” Christmas,” says AYCO’s Warren. “Those are merchandising asparagus are misting and “Educating the customer regarding nutri- the must-have months. It’s about planning putting ice at the bottom of the display,” tional value always helps sell product,” agrees and running ads right before everyone else — cautions Gourmet Trading’s Varennes. Stiles. and after.” “Doing this will decrease the asparagus Retailers have a lot of nutritional bragging Stores can use all holidays, including the quality and shelf life.” rights with asparagus. As stated in PAIA’s smaller ones, as promotion events. “Every Stiles agrees. “You don’t want to dehydrate Category Management Plan, “Asparagus is a holiday is a great opportunity to generate sales,” the product and, you don’t want to get the tips good source of potassium, vitamin A and says Stiles of Redner’s. “Christmas and Thanks- wet. These are the most common mistakes.” vitamin C. It is low in fat and contains no giving are significant times, but we even Proper and frequent rotation also ensures cholesterol. Asparagus is also rich in rutin and promote asparagus at Valentines Day. Back in successful sales. “Proper FIFO (first in, first out) folacin, which was proven important in the January, we had a recipe for asparagus in a rotation is crucial to quality displays,” says duplication of cells for growth and repair of salad. When there is ample product available to Alpine Fresh’s Yager. “One of the most common the body.” really get out and promote, we jump on it.” mistakes in handling is lack of rotation.” Lleras says asparagus offers something for “We have a program called Inspirational “You have to turn the product,” says Stiles. everyone. “Health aspects of asparagus appeal Pairings, which plays off our store motto,” “You can’t over order and be sitting on to a wide segment of the market including reports Kings’ Kneeland. “We pair asparagus product.” active life-stylists, young adults, growing with roasts or poultry around holidays and families and seniors. really promote the high-end cross-merchan- 3. Make It Visible dising.” A visible display will move product. “Loca- 5. Go Big For The Holidays tion is crucial,” says Stiles. “I like customers to Asparagus moves especially well during 6. Cross-Merchandise With Style see it as soon as they come into the department. the winter holidays. “Asparagus is a go-to Cross-merchandising asparagus holds It’s a great item, so you want it to be visible.” vegetable for all major holidays,” says Eagle of great potential for increasing ring. “Just about “In a PAIA Retail Opinion survey, many Southern Specialties. “October is a good time anything you can tie-in generates impulse retailers suggested standalone displays, to create promotions as product is in good sales,” says Stiles. “There are so many different pyramid and table displays, as well as supply and excellent pricing is available.” things we cross-merchandise with asparagus, doubling displays when on ad as effective “We know retail cares about asparagus and we really use it to generate extra sales.”
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“Cross-merchan- dising, especially with products contrasting in color to asparagus such as lemons and red peppers, really attracts customers and drives impulse sales.” — Paul Kneeland, Kings Food Markets
“Asparagus is a very versatile vegetable,” Varennes of Gourmet Trading. “It is also a quick and easy side dish to a meal.” concurs Eagle. “Merchandise it next to grilling suggested to put asparagus next to other A good partnership might mean moving meats and seafood in the summer. Place it produce contrasting in color such as red bell the product to other departments. “Having near cheeses, rice or other products in winter.” peppers. The two items go well together in a alternate displays in the meat department, “When merchandising asparagus, it is stir-fry and are visually appealing. Other items especially when we have filet’s on sale, gener- important to put it near other gourmet vegeta- to display next to asparagus include hollandaise ates extra sales,” reports Stiles. “Retailers bles like mushrooms and artichokes,” suggests sauce packets, which can be an impulse buy for should think creatively about the whole store.
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MERCHANDISING REVIEW
“Display different can try to sell value through education. “A make the consumer want asparagus. Signage product forms, such as costly component of distributing asparagus is helps drive this. For example, when buying a air freight,” advises Eagle. “Consumers should steak, if they see a picture of nice asparagus multiple SKU’s, sizes be made aware their product is ‘air fresh’.” on the grill, they will buy.” and colors such as Above all, it often comes down to value. “If “Signage is important when the price is the quality is there, then the pricing falls in low, you’re running a promotion or there is a green, white and line,” says Kings’ Kneeland. “We have recipe to suggest with items nearby,” agrees purple of fresh Peru- asparagus on ad during the season about Varennes. “Signage needs to be large enough every three weeks. This gets people to try it, to be noticed and also legible.” vian asparagus to and if the quality is good, they’ll be back to Signage and other POS materials can help increase consumer purchase more even off-ad. If they’re satisfied consumers better understand the properties with the value, they buy.” and nutritional value of asparagus. “Signage purchase penetration helps to inform consumers,” says Eagle. “It and frequency of 8. Communicate With Customers can be particularly effective in describing Utilizing POS materials and signage helps white and purple asparagus.” purchase.” educate and stimulate consumers to buy. “It’s “We try to tie-in products with recipes — Priscilla Lleras, all about impulse,” says Warren. “We need to provided by our nutritionist,” reports Stiles. Peruvian Asparagus Importers Association There are many customers who shop multiple supermarkets for different specials; so if you have someone coming in just for a special in meat or seafood, they’ll see the asparagus and pick it up.” “We encourage retailers to feature asparagus dishes in their foodservice and prepared foods sections,” says Eagle. “Shop- pers respond to ideas they see and also have an opportunity to taste the flavors of prepared dishes. Combine green, white and purple asparagus to create a salad sold in prepared food departments.” Cross-merchandising attracts additional sales. “Cross-merchandising, especially with products contrasting in color to asparagus such as lemons and red peppers, attracts customers and drives impulse sales,” says Kneeland.
7. Work With And Around Pricing Asparagus pricing can be unique in its effects. “Asparagus can be a price-resilient product to some extent,” says Stiles. “We can be $1.99 or $2.99 per pound, depending on availability, but still really sell volume regard- less of the price point. Our customers don’t walk away from fresh asparagus when it is a little bit higher.” However, there is a breaking point. “Our customers’ price threshold is around $4.99,” reports Stiles. “That would definitely slow down sales. I would choose to take less gross to keep customers happy and push it through just to be below $3.99.” “Asparagus is all about retail ads,” says Warren. “At $5.99 we sell a certain amount, at $4.99 we sell 3 times that, at $3.99 we sell 5 times, and at $2.99 we sell 8 times more. It’s really that mathematical.” At times when pricing is high, retailers
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“We always take advantage of any POP mate- other value-added formats. Gourmet Trading other materials to its retail customers. “We rial offered by suppliers.” Company offers tri-color asparagus packs for suggest retailers ask their asparagus supplier for retail and foodservice from September the correct information for POS,” says 9. Use Variety To Increase Sales through December. Varennes. “The asparagus experts at Gourmet Provide variety to give consumers more “Southern Specialties offers a variety of Trading Company have the information readily opportunities to buy. “Display different value-added and bulk formats that look great available for their retail customers.” product forms, such as multiple SKU’s, sizes on the shelf, provide added-value to the The PAIA created and distributed a Cate- and colors such as green, white and purple of consumer and bring higher per unit sales to gory Management Plan Outline for Peruvian fresh Peruvian asparagus to increase the register,” says Eagle. Asparagus to equip retailers, and the industry, consumer purchase penetration and with the type of information necessary to sell frequency of purchase,” advises Lleras. 10. Utilize Available Expertise more Peruvian fresh-market asparagus. And Varennes agrees. “Retailers can Making the most of your supplier part- “Specifically included within the outline increase demand by giving consumers new nership provides a wealth of tools and are merchandising goals encompassing items to try like offering all three colors of expertise. “We work with retailers to display ideas, promotion and advertising asparagus. Offering all three creates a vibrant customize their approach to marketing plans,” explains Lleras. “Many importers are display that is enticing to consumers.” asparagus,” reports Eagle. utilizing the outline as a tool to distribute to Many suppliers offer variety packs and Gourmet Trading Company offers POS and their merchandisers.” pb
NOVEMBER 2014 • PRODUCE BUSINESS 81 Regional Profile Detriot_Layout 1 10/23/14 10:39 PM Page 1
REGIONAL PROFILE: DETROIT Good Business Practices Propel Detroit Produce Industry Thriving suburbs help to offset problems found within the city limits. BY BILL MARTIN
(Clockwise) Rocky Produce: Tom Lucio, Steve Pizzo, Thomas Russo, Johnny Russo, John Vitale, Rocco Russo III, Ronnie Russo Jr., Joel Elias, Dominic Russo; Riggio Distribution: Phil Riggio Jr. and Dominic Riggio; Andrews Bros: Jim Russo, Dave O'Brien, Jeff Abrash, Bob Ventimiglia, Charlie Palazzolo and Jim Boggio Jr.; Ram Produce Distributors: Jim Bommarito holesale distributors on the Detroit Produce Terminal member of the company, founded by his great grandfather. While the appear to be thriving as they share stories about operation does a little more retail business, it also has substantial food- business successes and express optimism about the service accounts. future. You may wonder how this can be when in Abrash adds that the 85-year-old market has wholesale operations July 2013, the city of Detroit filed Chapter 9 bank- that count on independent retailers to aggressively market the fruits ruptcy.W The Detroit News reported that billionaire auto baron Roger and vegetables purchased on the market. In return, the independents Penske, owner of the Michigan-based Penske Corporation, said the bank on the wholesalers providing quality produce at a fair price. biggest municipal filing in U.S. history was “the right thing to do.” Dominic Riggio is president of Riggio Distribution Co. (formerly Jeff Abrash is owner and president of Andrews Brothers, Inc., a Aunt-Mid Produce). The company was founded in 1948 and his family wholesale distributor on the Detroit Produce Terminal, and he also purchased the business in 1984. “We have a very diverse ethnic base serves as president of the market’s cooperative, Detroit Produce allowing us to sell in large volumes,” he says. “Our geographic loca- Terminal, Inc. He is proud of the market facilities, which are debt-free tion allows us to sell across the [Detroit] River into Canada, and as far and offer relatively low rent for tenants. as the East Coast.” “The produce companies here are strong, aggressive, and have kept Riggio says this past year the company launched a successful expenses under control,” says Abrash, who is a fourth generation family home-grown package under the Aunt-Mid label. The new pack is well
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REGIONAL PROFILE: DETROIT Food Deserts: Social Responsibility Versus Practical Business BY BILL MARTIN
hether there are so-called food deserts in Detroit is up 700,000, while the surrounding metropolitan area has around 5 Wfor debate. In a 2012 report titled, Examining the Impact million residents. Abrash says there are “pocket” areas in the city, but of Food Deserts on Public Health in Detroit, which was there “is no such thing as food deserts.” commissioned by LaSalle Bank in Detroit, concluded in part, “. . . a At Ram Produce Distributing Inc., sales manager Jim Bommarito fundamental underpinning of poor nutrition is the dearth of retail agrees. He also used the term “pocket areas,” and says there may be outlets that sell a range of nutritious foods at reasonable prices. Fast certain residents that do not have easy access to food stores. He also food and other fringe food outlets are everywhere, yet there are notes Meijer, Inc. and Whole Foods Market Inc. opened stores in comparatively few quality grocery stores where fresh and healthy Detroit proper within the past year or so. foods can be purchased.” However, Stone is quick to point out the Meijer and Whole Foods The USDA defines food deserts as urban neighborhoods and rural stores are not located “in the most blighted areas” of Detroit. towns without access to fresh, healthy, and affordable food. Instead “There’s not a business that could open in the most derelict areas and of supermarkets and grocery stores, these communities may have no be successful.” food access or are served only by fast food restaurants and conven- Bommarito stresses that there definitely are not food deserts in ience stores that offer few healthy, affordable food options. Detroit’s suburbs. If a problem does exist there, it may be there are Nate Stone, general manager and chief operating officer of Ben B. too many retail stores. “Retailers have gotten a lot more competitive Schwartz & Sons, Inc. observes, “It [food desert] is a catchy term, but by reducing prices. This has made the Detroit terminal market even I think people get the issues confounded. When people talk about more competitive,” says Bommarito. food deserts, my question to them is, are you talking about a social Dominic Russo, buyer and sales manager for Rocky Produce Inc., responsibility, or in terms of practical business?” recently read an article about 26 million people in the United States Stone asks: How can there be a 100,000-square-foot retail store living in food deserts. “Detroit has had food deserts, but it is in Detroit, which lacks the population to support it? changing,” he says. Jeff Abrash is owner and president of Andrews Brothers, Inc. He Abrash at Andrews Bros. agrees that businesses are trying to describes the food desert conversations as relating to the Detroit change the problems facing Detroit. “It is still a tough inner city, with inner city. He points out the city of Detroit has a population of around a lot of crime and a lack of resources.” pb
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REGIONAL PROFILE: DETROIT
received and very popular between July and The general manager and chief operating Randazzo Fresh Market September when locally grown products are officer of Ben B. Schwartz & Sons Inc. BY BILL MARTIN readily available. describes working conditions as “fun, inter- He notes Riggio Distribution is well diver- esting and ever changing. Being in the Providing fresh foods in a sified with its business split about evenly produce industry kind of reminds me of being modern age, with an old-world feel. between retail and foodservice customers. a real sports fan, because of the range of “However, there are more of our retailers emotions. That’s what happens on the market purchasing foodservice packs, because they are every day.” selling more prepared foods, along with the Stone relates that sometimes one is feeling retail items we have always sold,” says Riggio. good, everything is running smoothly, but Nate Stone has his own views of why the then a truck arrival is late, and an order is Detroit wholesale produce market is successful. missed. “Some product arrives that didn’t come
s Sonny Randazzo, co-owner of ARandazzo Fresh Market — a full service food specialty and gourmet marketplace — strolls through the produce department, he politely asks an associate to attend to a fruit display that isn’t picture perfect. Later as he walks past the meat department he points out to another associate where a small portion of the stainless steel counter needs some spots removed. “It is our tremendous attention to detail, exemplary customer service and excellent quality,” says Sonny when asked how Randazzo Fresh Market competes with the large retail chains. Randazzo says he runs the family’s three stores along with his sister, Maria Randazzo. PRODUCE BUSINESS recently visited the Randazzo Fresh Market store, located in Sterling Heights, MI, a middle- to upper- middle-class-suburb, a few miles north of Detroit. Sonny Randazzo proudly speaks of the freshness of the small chain’s food, whether it’s the scratch baked breads, seafood, gourmet grocery items, butcher meat, gift baskets, deli or fresh produce. “I buy off of the Detroit Produce Terminal market for 95 percent of my produce, with the balance being with a few of the local farmers,” he says. “You can save money buying direct, but I’m
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REGIONAL PROFILE: DETROIT
shopping at the terminal market seven in quite like it was supposed to. One minute spent seven years working a successful days a week, and I hand pick everything.” your head is flying in the clouds, the next tenure at the Chicago Board of Trade before The retailer sees this as critical to minute your head is hanging down. But as a joining the family business. assure customers about the quality of company, we’re all on the winning side of “Both of these kids are still in their 20s, fresh fruits and vegetables they have things — and it’s a great future.” smart as can be, and are the hardest working come to expect. There is excitement in Stone’s voice as he guys you’ll ever meet,” says Stone. Entering the 25,000-square-foot speaks of Ben B. Schwartz president and At Serra Bros. Inc., salesman Brandon Serra Randazzo store, one has a panoramic view chief executive Chris Billmeyer, who has two notes the range of customers the wholesaler of the produce department, which sons now working at the company. Both are serves, ranging from Italian to Arabic to accounts for about one-third of the retail University of Michigan graduates. The Jewish independent retailers. “They [indepen- floor space. youngest son, Jake Billmeyer, came aboard dent retailers] care more about the product “With most retail stores, you walk soon after graduation, while Drew Billmeyer because they own their own stores. Sometimes through the produce section and you never see it again,” observes Sonny. “Here, you enter the produce department and then go through the deli on one side, and come out of the deli on the other side and back into the other side of the produce department.” The three Randazzo stores are located within a 20-minute drive of each other. The smallest is 18,000 square feet, while the largest totals 50,000 square feet, with the latter also serving as a warehouse with cooler space and dry storage. Nino Randazzo, who is semi-retired, started the company in 1972. Sonny, who grew up in the family business, began running the operation starting in the mid- 1990s. Sonny notes the great care taken with designing the stores. “We have an eclectic, old world look, but with a lot of modern stainless steel. We have both at the same time, which gives it an edgy feel,” he says. Shoppers not only have a lot of Italian and ethnic products from which to choose, but they have Italian music playing in the background. As shoppers are checking out at the registers, one last temptation at Randazzo’s awaits. It is the quaint café, with a counter and stools. A large bowl of fresh-cut fruit on ice is center stage on the counter and is used to make smoothies. There’s also a nice selection of other tempting food items, plus a selection of private label coffee, such as the organic Brazilian variety, all of which is roasted locally. A final touch is an old time Toledo brand scale that has been completely refurbished, and provides accurate weight for customers wanting to use it. “When you come here, you know it is an Italian market,” stresses Sonny. “We are a fresh market. We want to have a fresh look, and we are constantly changing and evolving.” pb
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REGIONAL PROFILE: DETROIT
with the big chains, the produce is not in top us to bring the best quality product in here. market,” says Russo. condition. With the independents, they have They are very creative about moving extra Riggio of Riggio Distribution agrees. “We their own kids working there, unlike the large sales when needed. The relationships we have definitely have a lot of strong independent chains,” says Serra. with our growers enables us to bring in the retailers. They are on the street here [at the Riggio concurs, asserting his company has quality our independent retailers are looking market] daily. They are looking for product that always served many different types of for,” observes Russo. separates them from their competitors. They customers. “We have always been diverse here. He notes there are buyers, who often are do a very good job.” This has always been an ethnic driven market,” the owners of independent retail stores, he points out. walking the market and buying fresh fruits Differences Between Dominic Russo is a buyer and sales manager and vegetables, seven days a week. “They Detroit And The Suburbs for wholesale distributor Rocky Produce, Inc. [independent retailers] want the best, The Detroit produce trade is generally aware “Our retailers do a phenomenal job. They drive freshest produce that arrives here on the of the negative image of the city around the country, and tend to acknowledge much of it is true. However, they also say there are many positives, especially when considering the modern, bustling suburbs, which rival many cities with positive imagery. Stone at Ben B. Schwarz acknowledges most of the news about Detroit is generally bad. “Most people around the country will see some of the blight and create their own image of Detroit by looking at a dozen photos,” says Stone. “But there are a lot of successful people here and a lot of successful companies.” Serra at Serra Bros. believes downtown Detroit is 20 years away from making a come- back. “The problem is more money needs to come into Detroit,” he says. “People have to have money to spend money. But Detroit has tons of potential.” Some people think Detroit has already started turning things around. Stone says several large corporations recently moved their headquarters to Detroit. He specifically cites Quicken Loans Inc., moving to the city in 2012. Quicken is the largest online retail mort- gage lender and the second largest overall retail lender in the United States, according to its website. “There are bright spots,” notes Stone. “But it’s going to take a while. It’s hard to turn these things around.” Riggio agrees and says he has buyers coming to his facility who cannot believe how much fresh produce is available. Some have said Riggio’s produce is fresher than what they have seen at the point of shipping. “You have Detroit and you have Detroit metro. The metro area has some fantastic restaurants,” he says. Stone concurs the metropolitan area of Detroit is doing fine. He believes in order for the city of Detroit to turn things around it will require workers who used to be in the auto- mobile industry to develop new skills. “They are making more cars than ever, and need fewer people than ever. They can make these cars in the dark, without air conditioning, without heat, without health insurance, and without worker’s comp claims,” he says. pb
86 PRODUCE BUSINESS • NOVEMBER 2014 Foodservice_Layout 1 10/23/14 10:17 PM Page 1
FOODSERVICE MARKETING What’s Hot And What’s Not In Foodservice Vast array of produce offers endless opportunities for chefs to create the next big thing on the plate. BY MINDY HERMANN
Experts agree that chefs are enhancing flavor with heritage culinary techniques, which (L-R) PHOTOS COURTESY OF BALDOR AND LONGHORN STEAKHOUSE include roasting, grilling, smoking, and pickling.
very year suppliers and the public at casual and quick dining,” says Maeve Webster, fine-dining menus include kale, compared to large wonder what’s hot and what’s senior director of research and consulting at only 8 percent of casual and quick serve. not in the vast array of produce Chicago, IL-based Datassential. “Furthermore, “Kale opened the door for other greens,” Eofferings at foodservice establish- kale has one of the highest rates of penetration says Cheryl Dolven, MS, RD, senior director of ments nationwide. Kale, for sure — in fine-dining restaurants, topped only by health and wellness at Orlando, Florida-based it’s both hot and not. Other vegetables and radishes and cauliflower.” Nearly 28 percent of Darden. “Our chefs are now creating dishes fruits also stand out, but it’s nearly impossible to name specifics without also considering preparation methods and trends such as seasonal, heirloom, local and global. Indeed, those are bigger than vegetables and fruits themselves. But first, a quick look at kale.
Kale Makes It Easy To Be Green This member of the cruciferous family — with relatives that include cabbage, broccoli, Brussels sprouts and cauliflower — generates both smiles and groans from chefs. While kale appears in most sections of most menus, including smoothies and snacks, many chefs admit to being “so over” kale. Still, it likely has several more solid years as it continues to make the journey from fine dining, to quick serve, to the refrigerated-salad shelf and home cook. “In our 2013-14 survey, kale was among the Top 10 most rapidly growing vegetables in fine, PHOTO COURTESY OF JOHNSON & WALES UNIVERSITY
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FOODSERVICE MARKETING
PHOTO COURTESY OLIVE GARDEN
with Swiss chard and Brussels sprouts, and they’re quite popular. For example, we couldn’t keep a Longhorn Steakhouse side dish of roasted Brussels sprouts with balsamic vinegar and a topping of Parmesan in stock.” Dolven predicts greens from global cuisines, such as Asian bok choy, will also grow in popularity. Baby greens continue to be popular. “Our college students love baby kale and watercress,” notes Christian Fischer, vice president of culi- nary innovations, Chartwells Higher Education Dining Services in Rye Brook, NY. “They also look for anything sprouted — bean sprouts, pea shoots, alfalfa sprouts, sprouted grains — at the salad bar and in their sandwiches.”
Pumpkin: From Mug To Plate The popularity of pumpkin-flavored PHOTO COURTESY OF SEASONS 52 coffee drinks and beers has demystified pumpkin and other types of squash on the meatiness while lowering calories, fat and menu. “Restaurants are introducing varieties sodium. The combination became so popular that include kabocha, acorn, spaghetti, and that it’s appearing in dishes on restaurant and delicata,” observes Webster. “What has school menus alike. changed even more, however, is the avail- Chef Robert Rusan, foodservice director, ability of products that are peeled, cubed, and Maplewood Richmond Heights School ready to cook, and this is spilling over to other District, St. Louis, MO, incorporates finely vegetables and fruits.” chopped mushrooms into meatloaf and “The pumpkin and squash trend is relent- meatballs. He says students also love topping less, and every year’s cycle hits bigger and their salads with various types of chopped earlier,” says Bill Fuller, executive chef of Big mushrooms. Burrito in Pittsburgh, PA. One of Fuller’s Chef Jehangir Mehta, executive chef and favorite dishes is the lesser-known blue owner of Graffiti and Mehtaphor in New York hubbard, which he roasts and purees for soup City, creates a burger with 40 percent mush- or side dishes. rooms (along with other vegetables) and 60 percent beef. “Mushrooms enhance the umami Much Ado About Mushrooms [a pleasant savory taste] of the meat and add Several years ago, the San Jose, CA-based their own meaty texture.” Mehta uses Porto- Mushroom Council teamed up with the Hyde bello mushrooms, but other varieties such as Park, NY-based Culinary Institute of America Black Trumpet and Crimini/Cremini also are to create a meat-mushroom blend to deliver growing in popularity.
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“Classic vegetables such as beets and arti- chokes are on various Darden menus. Corn, an age-old vegetable, is showing up in both traditional and new forms — on the cob or grilled in season and also sautéed, creamed, roasted, and pureed for thickening soup.” PHOTO COURTESY OF SEASONS 52 — Cheryl Dolven, Darden
fruit cups,” notes Patsy Ross, RD, director of and also exploring ways to extend the tomato nutrition, 7-Eleven, Dallas, TX. season by creating tomato products,” says Chef Fuller. What’s Old Is New Again Chefs are exploring new preparation “Few people could have predicted cauli- methods for classic vegetables. Fischer, of flower would become the latest vegetable Chartwells, steams carrots over ginger orange darling,” says Pamela Smith, RD, culinary tea and other vegetables over miso soup or Earl consultant and founding principal for the Grey tea to infuse them with delicate and Orlando, FL-based Shaping America’s Plate unique flavor notes. organization. Smith points out the naturally low-calorie, low-carbohydrate cauliflower was Local Versus Global propelled forward by popular weight loss diets. Which has more influence on fruit and Indeed, chefs use pureed cauliflower to lighten vegetable trends, local or global? The inspira- up mashed potatoes and add cream-free tion for tomorrow’s hot item could come from texture to soups. as near as the restaurant rooftop, as with the 19 Cauliflower of various colors and other varieties of heirloom tomatoes at New York colorful vegetables are put to a creative use at City’s North Square, or as far as halfway PHOTO COURTESY OF THE CULINARY INSTITUTE OF AMERICA university and college dining facilities. “To around the world. However, a focus on local make soups with school colors, chefs swirl means produce trends will differ from region Dolven describes the ubiquitous presence purees of the appropriately-colored vegetables to region depending on what can be grown. of mushroom on Darden menus. “We use both such as cauliflower,” says Chartwell’s Fischer. “As chefs, we want local and sustainable wild and cultivated mushrooms in main and The growing use of pea protein as a meat- sources for the fruits and vegetables we eat,” side dishes such as stuffed mushrooms, chicken less ingredient may be raising awareness of and explains Douglas Stuchel, MAT, CHE, who is marsala with mushrooms, and a burger with interest in peas. “Peas are poised for a come- foodservice management faculty advisor, mushrooms mixed into the ground meat.” back,” observes Rich Dachman, vice president Johnson & Wales University, Providence, RI. of produce, Sysco Corporation, Houston, TX. Adding a personal touch to farm-to-table Beverages Jumpstart Fruit At Kitchen 555, a corporate-dining facility in can create mini-trends. “When I introduce “The popularity of smoothies has given a Rye, NY, Chef Ross Goldflam plans to feature farmers to students, students build a closer boost to banana, mango and apple,” says Laura snow peas and sugar snap peas on his menus in connection to the food they’re eating,” notes Lapp, RD, director of nutrition, Chartwells the coming months. Fischer. Higher Education Dining Services. As creamy “Classic vegetables such as beets and arti- “Our school district has three professional tropical fruits such as dragonfruit, cherimoya, chokes are on various Darden menus,” notes gardeners who help create trends by intro- Red Cactus pear, and papaya become better Dolven. “Corn, an age-old vegetable, is ducing new produce to our students,” says known, they are likely to make their way onto showing up in both traditional and new forms Rusan of Maplewood Richmond Heights restaurant menus. — on the cob or grilled in season and also School District. “Students now eat all types of Fruit trends include increased availability sautéed, creamed, roasted, and pureed for greens, purple okra, heirloom tomatoes, and convenience. “While our fastest moving thickening soup.” aquaponic lettuce, and other foods they had fruit is the banana, we are seeing a lot of move- Availability creates trends. “This year’s previously never tried.” ment in mango, apple, pineapple, grapes, and bumper crop of heirloom tomatoes had us Local and global are not mutually exclusive. strawberries, the fruits that we offer in seasonal scrambling to use them while they were fresh “In Rhode Island, local communities receive
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FOODSERVICE MARKETING
(L-R) PHOTOS COURTESY JOHNSON & WALES UNIVERSITY AND LONGHORN STEAKHOUSE
support for growing native produce from their and Bahama Breeze. But seasons are short. [cooking technique] has led to the introduc- home country,” says Stuchel. “Chefs jumped on John Abels, chef instructor, Le Cordon Bleu tion of watermelon steaks, a Swiss chard stem board to source exotic items such as African College of Culinary Arts, Chicago, IL, encour- side dish and even a sous vide gazpacho.” vegetables from farms in our area.” ages chefs to take full advantage of the seasonal Taste bud roulette is popular. “Seared Webster notes that the expected emer- produce in their cooler. “Pickling and canning shisito peppers currently are the rage,” gence of Nordic, English, German, Brazilian are making a comeback and will be the wave observes Myrdal Miller. “Some are spicy hot and Peruvian cuisines may usher in Norwe- of the future for minimizing waste.” and some are not, and there’s no way to know gian berries such as cloudberries, Fruits and vegetables that are suitable for which is which. They add an element of lingonberries, and bilberries in desserts and pickling such as cabbage, turnips and radishes surprise to dining.” beverages; and South American starches oca, are likely to increase in popularity. “Darden “Flavor is about texture too,” observes mashua, and ulluco as fries and chips. Expect restaurants showcase dishes such as a Viet- Chef Mehta of Graffiti. “I use avocado, a wider variety of peppers too. namese Bahn Mi sandwich with pickled papaya, banana, and other fleshy fruits to Trends are likely to include fruits and carrots and papaya relish, grilled pastrami with make sorbets that have a rich ice cream-like vegetables from Middle Eastern, Thai, Indian, pickled jalapenos, pickled Asian vegetables as mouthfeel.” Many chefs use creamy vegetables and Korean cuisines, all of which are a side dish, and classic burger accompanied by such as avocado and pureed squash as the increasing in popularity. According to pickled cucumbers served in a decorative jar,” base for sandwich spreads. Although avocado Datassential, tropical, Latin, and Asian fruits says Darden’s Dolven. is not new, it was mentioned by several chefs — coconut, dates, papaya, yuzu, and fig — are as among the most popular menu items. on the rise in fine dining and on a course to Focus On Flavor trickle down to a wider variety of consumers. The quest for flavor is reshaping produce Choose MyPlate Established global cuisines such as on the plate. “Deliciousness is trendy,” says Health, nutrition, and obesity initiatives Mexican and Chinese have become more Amy Myrdal Miller, MS, RDN, founder and are driving changes in foodservice. The adventurous in their offerings. “We are incor- president, Farmer’s Daughter Consulting, government’s nutrition guidance icon, porating more jicama, different types of chilis, Carmichael, CA. “Chefs are enhancing flavor MyPlate, depicts the ideal plate as being half and a variety of Mexican and ethnic herbs,” with heritage culinary techniques that include vegetables and fruit. “The entire industry is says Barbara Sibley, owner of La Palapa roasting, grilling, smoking, and pickling.” looking to deliver on the demand for health Cocina Mexicana restaurant in New York “We prepare vegetables as we would meat,” and wellness by increasing the amount and City. says Fischer. “Our vegetarian menus include variety of vegetables and fruits on the plate,” “We enjoy pairing Mexican and Asian smoked carrots, roasted squash ‘ribs’ topped notes Myrdal Miller. flavors,” notes Fuller. He adds yuzu to margar- with barbecue sauce and grilled cauliflower “Foodservice is doing its part to help itas, creates tacos with yuzu, lobster, and the steaks. Many can stand alone as entrées on the reduce obesity by putting more produce on ever-popular avocado, and looks for new food plate.” the plate,” says Sysco’s Dachman. partners for ingredients such as galangal and Chef Daniel Yacashin, chef de cuisine, “Fruits and vegetables are highly empha- Kaffir lime. Village Social Kitchen + Bar restaurant in sized in popular diets such as paleo, gluten Mount Kisco, NY, takes advantage of specialty free, and Weight Watchers,” observes Darden’s Stretching Seasonal equipment to enhance the flavor of vegeta- Dolven. When patrons start requesting an “Seasonal eating allows you to enjoy fruits bles. “We char tomatoes in our wood-fired uncommon vegetable, for example, sunchoke, and vegetables at their best,” says Pamela pizza oven and then use them as a base for a diet book or plan may be the initial source Smith, who helped launch Darden’s Seasons 52 sauces. Our experimentation with sous vide of the inspiration. pb
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DRIED FRUIT & NUTS Bake Up Holiday Sales Of Dried Fruits And Nuts
High margins and low shrink help these items boost the bottomline. BY CAROL BAREUTHER, RD
Fourth quarter sales in 2013 represented a 22 percent increase over the average 3.2 percent of produce sales dried fruits and nuts contributed during the 52 weeks ending July 26, 2014.
ried fruits and nuts typically take director of produce and floral at Redner’s which makes them great for adding in baked center stage in the produce Markets, a Reading, PA-based chain which good recipes such as quick breads and cookies,” department during the November operates 46 warehouse markets and 14 conven- explains product manager, Stephanie Dand December holidays. After all, ience stores in three states. Harralson. “In addition, the 7-ounce bag of if it’s not figgy pudding or chest- What items should make up a merry winter plum Amazins equals about 1 cup and makes nuts roasted over an open fire and blended into baking display? measuring into a recipe easy.” the cream filling of a chocolate Yule Log, then Dried cranberries (39.3 percent), raisins Dates are another popular and festive addi- it is hundreds of other handed-down cake, (10.0 percent), prunes/dried plums (7.9 tion to bread recipes, cakes and cookies. cookie, bread and pie recipes that entice shop- percent), apricots (7.1 percent) and dates (5.3 “Year after year we see the holidays are one pers to seek out these ingredients for their percent), tallied as the Top 5 dried fruits sold of the peak times for Bard Valley Natural festive baking. out of produce during Q4 in 2013, according to Delights Medjool date sales,” says Erin These high-margin, low-shrink ingredients Nielsen Perishables Group data. Hanagan, marketing manager for Datepac LLC, contributed a considerable 4.1 percent of “The No. 1 selling item [in our company] in Yuma, AZ. produce dollar sales in the fourth quarter (Q4) within the dried fruit category is our 20-ounce Dried fig products also spike in sales from of 2013, according to data supplied by the West canister of raisins,” says Joe Tamble, vice presi- October to January. Dundee, IL-based Nielsen Perishables Group. dent of retail sales for North America, for “If dried figs indexed over a 12-month Fourth quarter sales represented a 22 percent Sun-Maid Growers of California, headquar- period at 100, then sales during the holidays increase over the average 3.2 percent of produce tered in Kingsburg, CA. “Other top-selling would index more than 200,” explains Linda sales dried fruits and nuts contributed during items are the bag-in-box raisins, golden raisins Cain, vice president of marketing and retail the 52 weeks ending July 26, 2014. and moist baking raisins. Zante currants spike sales for Valley Fig Growers, in Fresno, CA. “The Retailers that provide a variety of dried in sales during the last three months of the two primary products are Mission figs, which fruits and nuts in the produce department and year.” have a figgier taste compared to the mild or suggest these ingredients for baking through Sunsweet Growers, Inc., in Yuba City, CA, slightly nutty flavor of Golden figs.” recipes and advertising will be rewarded with introduced its 7-ounce resealable pouch bag of A diversity of holiday recipes calls for an the bonus of incremental sales. diced dried plums called Amazins in 2011 and assortment of dried fruit products. expanded the line to include 5-ounce resealable “Include products in the baking display like Key Ingredients pouch bags of Amazin Cranberries (diced dried dried apricots, apples, cherries, pineapple, “Raisins, dates, dried cranberries, shelled cranberries and plums) and Amazin Berry papaya and mango to create a one-stop shop,” pecans, walnuts and almonds are some of the Blend (diced dried cranberries, plums, blue- says Sun-Maid’s Tamble. items we promote for holiday baking in berries and cherries) in 2013. Pistachios (37.8 percent), almonds (18.1 November and December,” says Richard Stiles, “Amazins have a lower moisture content percent), walnuts (16.6 percent), peanuts (8.9
NOVEMBER 2014 • PRODUCE BUSINESS 91 Holiday Baking_Layout 1 11/4/14 10:57 AM Page 2
DRIED FRUITS AND NUTS
percent) and pecans (6.6 percent) represented traffic areas such as the banana table or berry the Top 5 types of nuts sold out of produce display will maximize sales of dates and other during Q4 in 2013, according to Nielsen Perish- dried fruits and nuts in the fall.” ables Group data. Bristol Farms, a 15-store chain headquar- “Pistachios are a popular snack nut, tered in Carson, CA, features special however we are seeing shelled pistachio sales as merchandising displays of dried fruits and nuts an ingredient for baking growing,” says Joseph in October, November and December. “For us, Setton, vice president of domestic sales for this display depends on the store size and lay- Terra Bella, CA-based Setton International out,” says John Savidan, director of produce Foods, Inc. merchandising. “It might be a shelf gondola, or Shelled is the No. 1 form of pecan sold at separate display like an endcap, or standalone supermarkets. island display.” “The big time to sell pecans at retail is for Tables set front and center in the produce the holidays,” says Richard Merritt, president department are a good way to create this kind and owner of the Merritt Pecan Company, in of display, according to Paul Rich, vice presi- Weston, GA. dent of sales for the Durham-Ellis Pecan Co., Retailers start to bring chestnuts into the Inc., in Comanche, TX. “This type of display produce department in early November. should be two to three times the size of the “Small retailers and mom-and-pop grocers dried fruit and nut display the rest of the year.” will buy the 25- or 55-pound bags, but the This year, suppliers of Natural Delights- chain stores want chestnuts pre-packaged. The branded dates will feature a new floor stand benefit of packaging is the information. For shipper display, which features holiday recipes example, you have to cut the chestnut across as well as hold packages of Medjool whole, before roasting or it will explode,” explains pitted and/or organic dates. Salvatore Vacca, president of A.J. Trucco, Inc., “We are playing up the theme of ‘Naughty in Bronx, NY. or Nice’ with respect to what type of items can be created, decadent to healthy, using our Build A Baking Center dates,” explains Datepac’s Hanagan. “Most retailers are building large holiday Build big floor displays with back-to-back baking displays in the produce department,” shippers to really grab impulse sales. says Ben Antongiovanni, sales manager at Atlas “We’ve seen retailers do this with multiple Produce & Distribution, Inc., in Bakersfield, items and multiple brands. It makes a great CA. “Building large displays at eye level in high- visual,” says Sunsweet’s Harralson. Trendy Ways To Sell More Dried Fruits For Holiday Baking
ealth and wellness combined butter or oil called for in a recipe with with good taste are two big prune puree. This works well in recipes Hreasons customers shop in the like brownies and banana bread.” produce department. These attributes Similarly, blending 2 cups of dates are a great platform to gain incremental with a half cup of hot water can make sales of dried fruits during the holiday date paste. baking season. How? Pureed dried “We are finding that many consumers plums are an excellent fat substitute and are looking for ways to incorporate date paste is a great sugar substitute in natural sweetening elements into their baked goods recipes. Both of these baking routines, and Natural Delights ingredients are simple to make from Medjool date paste is a perfect addition dried plums and dried dates. to any recipe that calls for sugar “Prune puree is easy to make. Simply normally,” says Erin Hanagan, marketing combine 8-ounces of prunes or dried manager for Datepac LLC, in Yuma, AZ. plums and 6 tablespoons of hot water in “We created an eBook full of recipes a food processor and blend until and ideas focused on this topic. Recipes smooth,” explains Stephanie Harralson, include Spiced Medjool Date & Walnut product manager for Sunsweet Growers, Brownies and Medjool Date Pudding Inc., in Yuba City, CA. “Replace half the Cake with Caramel Sauce. pb
92 PRODUCE BUSINESS • NOVEMBER 2014 Holiday Baking_Layout 1 10/23/14 10:25 PM Page 3
Get The Recipe Word Out baking ingredients. there is no need to make dried fruits a loss The festive season is a time when many “We will promote dried fruits and nuts by leader,” says Sun-Maid’s Tamble. customers already know what they want to ‘everyday low pricing’ through the baking There are two ideal times to promote dried bake when they come in-store to shop. Yet, this season and via spot ads. For example, we might fruits and nuts for holiday baking.“The first is doesn’t diminish the valuable nature of recipes go from an in-store retail of $2.99 to 2 for $5 as two weeks prior to Thanksgiving consumers as these can be used to expand usages and cash the ‘everyday low price,’ to $2 in spot ads,” not only use dried fruits in baking, but also use register rings. explains Redner’s Stiles. them in turkey stuffing and side dishes like “We will build separate displays in the front Many suppliers offer promotional support sweet potato casserole. The second is of the store with all the ingredients in one spot,” in the form of ad allowances. “A promotion, throughout the month of December for baking explains Redner’s Stiles. “This means dried regardless of the depth of the discount, moves as well as for use in appetizers and holiday gifts fruits and nuts along with grocery items like the needle on sales. While some retailers tend like homemade trail mix,” suggests Sunsweet flour and sugar.” to be more aggressive in pricing than others, Harralson. pb Sunsweet Growers offer tear pads with recipes for a festive Berry Chutney Torte, Plum Pastries and Orange Oat Cookies, entertaining tips and a 55-cent off coupon. These pads can be affixed to shippers displaying the company’s Amazins products. Similarly, Sun-Maid Growers has a variety of recipe booklets for its dried fruit products. “Our website has a range of recipe ideas, and our web address is on our packaging. We also do a lot of recipe sharing on Pinterest for social media active fig lovers, as well as online contests where consumers share photos and recipes of their dishes for a chance to visit Boston and watch the filming of America’s Test Kitchen. We are a sponsor of this TV show and have worked with them on recipe development,” says Valley Fig’s Cain. Setton International Foods enlisted the help of celebrity chefs, Jenny Engel and Heather Goldberg, who own Los Angeles, CA-based cooking school as well as gourmet vegan food company Spork Foods, to develop both seasonal as well as year-round recipes using the company’s Pistachio Chewy Bites. This product is made of shelled pistachios, dried cranberries and agave nectar fashioned into bite-sized bars. “The idea is to take this finished dried fruit and nut product and help time-starved consumers turn it into a 5- to 10-minute meal or dish,” says Setton. Holiday-oriented recipes include Chocolate Covered Pistachio Chewy Bites, Scones and Cranberry Sauce. “These recipes will be available for our partner retailers to use electronically on their own websites or social media sites. In addition, we’ll be launching a public relations campaign to get these recipes out to magazine editors and TV food shows,” explains Setton. “These are much more direct methods of delivering recipes to consumers rather than have them stumble across them in store.”
Price Promote Price promotions can spur even greater sales of the produce department’s prime seasonal
NOVEMBER 2014 • PRODUCE BUSINESS 93 Harris_Layout 1 10/31/14 12:59 PM Page 1
RETAIL PERSPECTIVE IS PMA’S FRESH SUMMIT WORTH ATTENDING?
ast month we discussed the challenges engage key customers on the floor. Failing to find and contact these Lthat were made by upper management individuals can ruin a strategy for success and growth of a company. to attend Produce Marketing Associa- While management is concerned over the fact that conventions, tion’s (PMA) Fresh Summit and the cost inherently, are perceived as being one big party with lavish dinners and entailed. We will now examine the second considerable consumption of adult beverages, working a convention part of management's concern regarding successfully from the retailer’s side or the vendor's viewpoint involves the conference. a considerable amount of effort and time. This is especially true of a After attending the convention, at the huge gathering such as PMA. The sheer size and number of people, first staff meeting, it is inevitable that booths, and vendors makes meeting and conversing in a meaningful management will ask Produce to share with manner with your key contacts a difficult task at best. The challenge of the group everything they learned and what was new and different at negotiating through the maze of booths, and the mass of humanity in the show. This is obviously a the hall can be intimidating and question aimed at providing the frustrating to the attendee, what- justification for the cost of I have attended the PMA convention for ever his or her affiliation. sending one or possibly more more than 30 years, and in every staff Perhaps the size and impor- team members to the show. They meeting immediately following the tance of PMA that draws all the demand to see and be presented people to attend is becoming a with concrete examples of the conference, management always wants a liability in terms of achieving value of the show. Once again short and concise discussion of what success. Having lived on both management shows that "they was learned and how it will benefit the sides of the fence, I experienced just don't get it!" the inability to discover all of the I have attended the PMA operation. The values of attendance at new items or opportunities in convention for more than 30 PMA for retailers goes beyond discov- the industry, and the frustration years, and in every staff meeting of not being able to present new immediately following the ering what is new in the industry and ideas and opportunities to key conference, management always those opportunities that will equate to customers because the show is so wants a short and concise discus- improved performance and/or prof- large you cannot find all your sion of what was learned and how key customers. In fact, it is nearly it will benefit the operation. The itability for the retailer. impossible for a single person to values of attendance at PMA for see the entire show and discover retailers goes beyond discovering all the potential opportunities what is new in the industry and those opportunities that will equate to and new items that are available. In all the years I attended the improved performance and/or profitability for the retailer. convention, it has grown from one that could be covered by one While keeping pace with new developments in the industry and person to one that requires several people assigned specific areas to seizing opportunities are very important, it is the networking and reasonably cover the show floor. It is especially frustrating for vendors, conversation with peers in the industry that is the true value of PMA. with or without booths, to locate and engage the retailers attending In my experience, many times chance encounters and conversations the show. Because of their importance, these retailers (as well as other prove to be more valuable than some of the new items or opportunities buyers) are often mobbed by potential vendors when they walk the that you uncovered during show. floor, which slows them down and prevents them from properly These benefits are not only reserved for the retailer, but the exploring the conference. exhibitors, vendors and suppliers also can reap the benefits of these While a discussion of the solutions to these challenges facing chance meetings and discussions. In many cases, the exhibiting compa- humanity is a subject for another column, it is clear that attending nies and the vendors attending the show gamble their company's future PMA’s Fresh Summit and having a successful outcome depends on the success on the ability to meet their target customers. For the exhibitor, effort, strategy, and new opportunities that a vendor can show to the this is a key aspect as there is a substantial cost to being an exhibitor at retailer. For all concerned, it is a tough grind that exhausts all of the the PMA. Many times successes are judged against the number of participants. Upper management can rest easy knowing that their retailers and key customers that they were able to connect and converse personnel, regardless of the side of the industry they are on, are with in their booth. For those without a booth, the key to success working diligently for the company and exhausting themselves during depends on those chance encounters and the ability to locate and their attendance at the PMA convention. By Don Harris Don Harris is a 40-year veteran of the produce industry, with most of that time spent in retail. He has worked in every aspect of the industry, from “field-to-fork” in both the conventional and organic arenas. Harris is presently consulting on all subjects of retail, category development and sales strategies, among others. Comments can be directed to [email protected]
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EUROPEAN MARKET EXAMINING PRODUCE OPPORTUNITIES FOR THE US IN EUROPE
n any visit to an international fruit markets of Germany, the U.K., France, Italy and Spain to much smaller Omarket in Asia, Latin and Central markets such as Ireland, Belgium, and the Scandinavian countries. America or neighbouring countries, A number of EU countries act as an entrepot for significant re- such as Mexico and Canada, one will see a exports to other parts of Europe, North Africa, Eastern Europe and the range of U.S. fresh produce on sale — often former Soviet Union markets, which are sometimes difficult to reach on visibly promoted to a high standard. The a direct basis. U.S. is a major player in the global fruit The range of customer types is wide — from the discount giants of market, and of course, benefits from a large Germany to the high-end retailers such as Waitrose and Marks & domestic market. This puts the U.S. in a Spencer in the U.K. and just about everything in between. strong Leading EU retailers all have position, but the European Union significant expansion plans in (EU) now seems to be less of a Taking a long-term view of what areas such as Africa, parts of the priority than in the past. Middle East and Asia as part of The U.S. spent considerable opportunities are in Europe presents a their plans to globalize their busi- time, money and effort in the past major challenge for the U.S. produce ness. Global retailers will seek building market share in Europe. trade. Turning a back to Europe now global suppliers. There is a danger as U.S. EU markets are technically exporters look for new markets in might see the market opportunity demanding, but often present far Asia and elsewhere — essentially, closed for some time to come — just at less commercial risk compared their eye is taken off the ball. Our the very moment when the prospects to the emerging markets where experience is that it can take a doing business is inherently long time to build an export for U.S. exports seem better than they difficult. market, but it can be lost much might have for some time. The physical infrastructure is more easily. It takes considerable good — roads, rail, air and sea effort to win them back. Never a freight routes all work effectively. truer word spoken is the phrase The concentrated nature of often used in marketing circles, that ‘it is five times easier to keep an the market in many countries means U.S. exporters will often only need existing customer, than win back a lapsed one.’ a relatively small number of customers to gain potentially significant U.S. exporters sometimes struggled to supply the EU market, and of market shares. course, face competition from locally based producers and found that The foodservice sector is well established, consolidating and still the Common Agricultural Policy (CAP) can work against them. But growing. With U.S. expertise in the foodservice channel well established, no export market is easy. This barrier to trade might well be removed this could be an opportunity for the future. when the Free Trade Agreement between the EU and U.S. comes to Doing business in the EU, as in any export market, is only really for fruition, although this will not happen overnight. With often signifi- the long-termer and highly professional, but the development of the cant, locally-based EU production, and imports from other parts of the Free Trade Agreement will be a massive boost to develop trade across world — notably the Southern Hemisphere — the U.S. assumed the the board. The EU is still a major destination for many international position of a niche supplier to the EU, but still has a loyal following in produce suppliers, such as the Southern Hemisphere, despite the the commercial trade for a number of products. obvious temptations and attraction of Asia and other emerging The EU still has a number of highly attractive factors, though, for markets. The regulatory environment will move in favor of U.S. any export source to consider. The following are all worth bearing in exporters over time, but efforts are needed to build those all-important mind for U.S. exporters: commercial relationships, as well as retain and nurture the ones that The EU is home to more than 500 million consumers, and levels of already exist. wealth are relatively high, despite the economic problems of the past Taking a long-term view of what opportunities are in Europe pres- few years. The threat of double-dip recessions seems to be fading — ents a major challenge for the U.S. produce trade. Turning a back to although in some cases, full economic recovery is still fragile and some Europe now might see the market opportunity closed for some time to way off. come — just at the very moment when the prospects for U.S. exports There are 28 markets to choose from ranging from the mega seem better than they might have for some time.
By John Giles John Giles is a divisional director with Promar International, a leading agri food value chain consulting company and a subsidiary of Genus plc. He is also the current chair of the Food, Drink & Agricultural Group of the U.K.-based Chartered institute of Marketing and can be contacted at the following email: [email protected]
NOVEMBER 2014 • PRODUCE BUSINESS 95 VOI_Layout 1 10/31/14 1:04 PM Page 1
VOICE OF THE INDUSTRY IS THERE ROOM FOR ANOTHER BANANA BRAND?
s you might have read, AgroAmerica from different growing regions to ensure customer supply. A Fruit Co. recently announced the The second most important driver for the consumer is price. To launch of its new brand, ONE gain marketshare and give retailers an incentive to change brands, a BANANA “The Better Banana Co.,” in new company must be able to provide a strategic cost advantage to September. In speaking to industry leaders gain trial. This means being more efficient than the competition and about this program, many questioned fully integrated in all areas of production, shipping, and distribution. whether the industry needed another When you look at the costs of bananas versus other commodities banana company. over the past 10-plus years, price increases lagged, and farming costs When you sit back and examine the outpaced price increases. Given this trend, a strategy must be estab- number of established banana brands, it’s a lished to offer a much more efficient shipping, port, and inland great question. My thoughts go immediately to where would a new delivery system. brand best fit into the marketplace? Would a new brand be most Aside from quality and price, it’s also important to be a responsible successful with a lower or higher international partner. Any new quality spec? Should it focus on a player must show a 100 percent low cost, equal price or premium commitment to Quality Stan- price? Would the company be When you look at the costs of bananas dards, Social Responsibility and more successful by focusing on a Sustainability Practices. The commitment to the environment versus other commodities over the past widest-recognized industry and social responsibility? Is there 10-plus years, price increases lagged, leading programs for such stan- any innovation missing in the and farming costs outpaced price dards are Global G.A.P. and industry, and how might a Rainforest Alliance. different approach be marketed? increases. Given this trend, a strategy Today’s and tomorrow’s What kind of company could must be established to offer a much banana customers value trans- effectively step in to provide this more efficient shipping, port, and parency and want to buy from type of solution? In breaking environmentally sustainable down these questions, I think it’s inland delivery system. farms, where workers, families best to start with the consumer. and communities are supported As the true decision-makers, we with better living conditions. In need to understand what prima- addition, companies that adopt rily drives their purchasing decisions. positive socio-economic programs like ensuring employees are paid Industry studies show the most important things that influence living wages, producing clean energy, reducing water waste, and buying are appearance and quality. Consumers buy with their eyes. promoting forest conservation will generate goodwill with customers, They are easily put off by visual defects like scarring and staining. as well as receive credit for their efforts with retail buyers. They look for a variation of color plus hand size. The complicating Finally, there needs to be an element of innovation. As a category, factor for a banana company is many retailers ripen their own fruit. banana growth is relatively flat and in need of a new way of doing As such, a banana grower cannot readily control what its products business. Custom-tailored retailer solutions, along with powerful look and feel like at the retail level. storytelling through social media and other new media platforms What growers can control is their packing standards and specifi- represent the future. cations. The question then is should this specification be lower, the Now back to our original question, “Is there room for another same or higher than the industry standard? In examining what banana brand?” The answer is, yes. There is room for a banana brand matters most to the customer, the best course of action is to always provided that it’s different. A new banana company must be disrup- exceed industry quality standards. That means farms in growing tive, set new industry leading standards, and be better. I see a bright regions will need to consistently deliver a slightly larger average bunch future for companies like ONE BANANA. It has more than 40 years size in packing and incorporate protection standards that prevent experience in the North American and European markets and is cosmetic defects and substantially reduce latex staining. In addition, committed to being a “better banana company.” I wish the company due to the potential for major weather events, any new company must the best of luck in its quest to make a difference — ONE BANANA at have a built-in risk diversification program where it can multisource a time.
By Craig Carlson Craig Carlson is a 30-year veteran of both the retail and foodservice industries. Carlson is presently consulting in all matters of the produce supply chain, strategy, marketing and business development. For questions or more information, visit carlsonproduceconsulting.com
96 PRODUCE BUSINESS • NOVEMBER 2014 Info Showcase_Layout 1 11/4/14 11:14 AM Page 1
INFORMATION SHOWCASE
Receive supplier information fast by using the PRODUCE BUSINESS Information Showcase. Here’s how: NOVEMBER 2014 Contact the advertiser directly via the website, email, or phone listed in the ad.
COMPANY PAGE # PHONE WEBSITE COMPANY PAGE # PHONE WEBSITE Albert’s Organics ...... 79...... 800-996-0004...... www.albertsorganics.com Keystone Fruit Marketing, Inc...... 64...... 717-597-2112 ...... www.keystonefruit.com Andrews Brothers, Inc...... 84...... 313-841-7400 LGS Specialty Sales, Ltd...... 41...... 800-796-2349...... www.lgssales.com Anthony Vineyards, Inc...... 92...... 661-858-8300 ...... www.anthonyvineyards.com Malena Produce, Inc...... 34...... 520-281-1533 ...... www.malenaproduce.org Associated Potato Growers, Inc.....44...... 800-437-4685 ...... www.apgspud.com Mann Packing Company, Inc...... 19...... 800-884-6266...... www.veggiesmadeeasy.com Avocados From Mexico ...... 57...... 517-641-2152...... www.avocadosfrommexico.com Melissa’s/World Babe Farms, Inc...... 32...... 800-648-6772 ...... www.babefarms.com Variety Produce, Inc...... 79...... 800-468-7111 ...... www.melissas.com Blue Book Services ...... 39...... 630-668-3500...... www.producebluebook.com MIXTEC Group ...... 38...... 626-440-7077...... www.mixtec.net Booth Ranches, LLC...... 71...... 559-626-7653 ...... www.boothranches.com Mother Earth ...... 80...... 610-869-7211...... www.organicmushrooms.com Brooks Tropicals ...... 53...... 800-327-4833...... www.brookstropicals.com Paramount Citrus Association...... 7 ...... 213-612-9957 ...... www.paramountcitrus.com Capital City Fruit Co., Inc...... 32...... 515-981-5111 ...... www.capitalcityfruit.com Paramount Citrus Association...... 25...... 661-720-2500 ...... www.paramountcitrus.com Catania Worldwide...... 81...... 416-236-9394...... www.cataniaworldwide.com Peri & Sons Farms...... 64...... 775-463-4444 ...... www.periandsons.com C.H. Robinson Worldwide, Inc...... 46...... 877-679-2933 ...... www.chrobinson.com Peruvian Asparagus The Cranberry Network LLC ...... 47...... 715-422-0410...... www.thecranberrynetwork.com Importers Association ...... 78...... 817-793-3133 Crowley Maritime Corp...... 51...... 800-CROWLEY...... www.crowley.com/fresh Pexco Produce Sales Inc ...... 49...... 954-946-3363...... www.pexcoproduce.com Del Monte Fresh Produce ...... 100...... 800-950-3683 ...... www.freshdelmonte.com Phillips Mushroom Farms ...... 31...... 800-722-8818 ..www.phillipsmushroomfarms.com Del Monte Fresh Produce ...... 5 ...... 800-950-3683 ...... www.freshdelmonte.com Pom Wonderful ...... 9 ...... 877-328-7667 ...... www.pomwonderful.com Direct Source Marketing ...... 15...... 914-241-4434...... www.directsourcemktg.com Pom Wonderful ...... 17...... 800-380-4656 ...... www.pomwonderful.com Dole Fresh Fruit Company...... 2 ...... 818-879-6600 ...... www.dole.com Produce for Better dProduce Man Software ...... 88...... 888-PRODMAN ...... www.dproduceman.com Health Foundation ...... 55...... 302-235-2329...... www.pbhfoundation.org Edinburg Citrus Association ...... 74...... 956-383-6619...... www.txcitrus.com Produce Marketing Association...... 61...... 302-738-7100...... www.pma.com Fierman Produce Exchange...... 38...... 718-893-1640 Riggio Distribution co...... 83...... 313-841-7911 ...... www.riggiodistribution.com Floral Business ...... 11...... 561-994-1118 ....www.floralbusinessmagazine.com Rocky Produce...... 86...... 313-841-7780...... www.rockproduce.com Foodsource Organics...... 79...... 800-366-8755 ...... www.buyfoodsource.com O. C. Schulz & Sons, Inc...... 48...... 701-657-2152 Fresh Origins, LLC ...... 44...... 760-736-4072...... www.freshorigins.com Ben B. Schwartz & Sons, Inc...... 85...... 313-841-8300 ...... www.benbdetroit.com Fresh Origins, LLC ...... 43...... 760-736-4072...... www.freshorigins.com Sun Pacific ...... 73...... 213-612-9957...... www.sunpacific.com Fresh Origins, LLC ...... 49...... 760-736-4072...... www.freshorigins.com Sunkist Growers, Inc...... 75...... 818-986-4800 ...... www.familystories.com G&D Wallace, Inc...... 49...... 360-757-0981 Tanimura & Antle, Inc...... 35...... 800-772-4542 ...... www.taproduce.com Harris Consulting Solutions ...... 88...... 269-903-7481...... www.harrisconsult.com TCS Citrus ...... 74...... 956-383-6619...... www.txcitrus.com Hass Avocado Board ...... 59...... 949-341-3250 ...... www.hassavocadoboard.com Thermal Technologies, House Foods Incorporated ...... 67...... 803-691-8000 ...... www.gotarpless.com America Corporation...... 45...... 714-901-4350 ...... www.house-foods.com Triple J Produce, Inc...... 80...... 252-205-2936...... www.triplejproduce.com Idaho Potato Commission...... 33...... 208-334-2350...... www.idahopotato.com/retail United Fresh Produce Association 99...... 202-303-3400...... www.unitedfresh.org S. Katzman Produce ...... 29...... 718-991-4700...... wwww.katzmanproduce.com The USA Bouquet Co...... 22...... 800-306-1071...... www.usabq.com J.R. Kelly Company ...... 48...... 888-344-4392 ...... www.jrkelly.com Valley Fig Growers ...... 93...... 559-237-3893 ...... www.valleyfig.com Kern Ridge Growers, LLC...... 79...... 661-854-3156 ...... www.kernridge.com Young Pecan Co...... 92...... 800-469-6607 ...... www.youngpecan.com
NOVEMBER 2014 • PRODUCE BUSINESS 97 Blast_Layout 1 11/3/14 2:39 PM Page 1
BLAST FROM THE PAST
‘Take It Outside!’
he Brown brothers, Andrew (pictured at around 6 years old), simply a natural progression. Adam (pictured at around 4 years old) and Justin (pictured at Although the Brown family has been growing California citrus for Taround 2 years old) may have thought they were helping their five generations, Justin is the second generation for D Bar J Orchards. father, David Brown, with farming chores the day this photo was taken, Today, Justin runs the farm’s day-to-day operations with his father. “but in reality, we were more likely getting in the way,” jokes Justin Andrew works for the Loveland, CO-based Crop Production Services Brown, fifth generation Sunkist grower. “We were playing in a hole our and consults with the farm operation’s pest and nutritional needs. Adam father dug to make repairs/updates to the irrigation system — which works in the citrus industry as well for a large grower/packer/shipper. was installed in the late 1970s — at the Hill Lemon Ranch.” One of Because of D Bar J Orchards’ location, which is at the foot of the Justin’s early memories when his brothers and he were creating a rau- southern Sierra Nevada mountain range, it is highly diversified with cous was his mother expounding her famous line, “Why don’t you kids several varieties of navel oranges (early-to-late season), lemons, pum- take it outside!” melos, as well as mandarins. The farm also grows specialty citrus items The Brown’s became involved with Sunkist because of the family’s such as Meyer and seedless lemons, Moro Blood oranges and Cara long history with the cooperative, which dates back to the very beginning Cara navel oranges. of the Sunkist cooperative in the late 1800s — when the Brown family The family prides itself on innovation in sustainable farming, and started farming citrus in Southern California areas such as the Redlands, continuously makes an effort to conserve water. David started convert- Upland and Riverside. ing to micro-sprinkler irrigation in 1985, and he planted their first By the early 1930s, the family moved to its current farming land in the Clementine orchard with drip irrigation in 2012. “We are constantly Central Valley, and began growing and packing citrus in the Visalia, striving to make the best use of our precious resources,” says Justin. Woodlake, Orosi and Orange Cove areas. By the 1980s, David established “Answering the demands of consumers’ concerns about food safety, we Orange Cove, CA-based D Bar J Orchards (while still maintaining Hill are Global G.A.P. certified, and we take pride in practicing the best and Lemon Ranch), and the new company’s involvement with Sunkist was responsible methods for growing fresh, healthy, and nutritious citrus.”
The Blast from the Past is a regular feature of P RODUCE B USINESS . We welcome submissions of your old photos, labels or advertisements along with suggested captions. Please send materials to: Editor, P RODUCE B USINESS , P.O. Box 810425, Boca Raton, FL 33481-0425, or email [email protected]
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