Produce Business September 2008
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inside... The Pundit Looks At Wegmans • Chilean Avocados • Fall Merchandising • EASTERN APPLES • Pears • Juices Wisconsin Potatoes • Michigan Apples • California Grapes • IDAHO POTATOES • COLORADO POTATOES • Sustainable Transportation • Pistachios Olympic Produce • Potato Marketing • Leafy Greens • Foodservice Distribution • Floral Certification Programs • Regional Profile: PHILADELPHIA SEPT. 2008 • VOL. 24 • NO. 9 • $9.90 MARKETING • MERCHANDISING • MANAGEMENT • PROCUREMENT SPECIAL SECTION Starts on page 107 Reader Service # 41 SPECIAL SECTION SEPT. 2008 • VOL. 24 • NO. 9 Starts on FEATURES page 107 FALL MERCHANDISING IDEAS ....................................................46 Go bold this fall with bright tips for building profits. SELL A NEW TABLE GRAPE IMAGE ..............................................58 Rethink grape merchandising to create excitement around popular category. CHILEAN AVOCADOS RIPE FOR RETAIL SALES ...............................62 Chile offers retailers a steady flow of COVER STORY counter-seasonal avocados, thus enabling year-round sales. THE GREEN ISSUE — SUSTAINABILITY RESOURCE GUIDE ..26 MAXIMIZE SALES OF EASTERN APPLES ........................................66 Eastern apples offer retailers an opportunity to showcase the unique characteristics of this category veteran. COMMENTARY MIGHIGAN APPLES COUNT ON LOCAL THEME ..............................69 THE FRUITS OF THOUGHT Set Michigan apples apart from Washington and California Sustainability Pull-Back?...................8 varieties by focusing marketing efforts on locally grown aspect. VOICE OF THE INDUSTRY PBH CAMPAIGN AIDS JUICES .....................................................99 The Consumer Side Of Sustainability .....24 Logo helps retailers promote a healthful juice message to consumers. RETAIL PERSPECTIVE FUEL AND SUSTAINABILITY IMPACT TRANSPORTATION INDUSTRY . 104 Pricing In Today’s Economy .............156 Companies throughout the supply chain are looking for cleaner and greener means to move fruits and vegetables. VOICE OF THE INDUSTRY Searching For Sustainability Answers ....158 PB Q&A: QUESTIONS FOR GERALD PROLMAN .............................152 EUROPEAN MARKET Green Creativity, Chapter 2 ............159 DEPARTMENTS MERCHANDISING REVIEWS: Five Ways To Better Merchandise Potatoes ..............................................123 Increase spud sales by stocking the right mix, IN EVERY ISSUE creating knock-out displays and promoting frequently. THE QUIZ .............................4 MERCHANDISING REVIEWS: WASHINGTON GRAPEVINE..........6 Build Profits With Pears ................................................................128 Merchandising opportunities call for pear-ripening education. PRODUCE WATCH ..................10 MERCHANDISING REVIEWS: RESEARCH PERSPECTIVE...........18 Leafy Greens Holding Strong And Growing .............................................136 Smart and innovative merchandising techniques help boost sales of this nutritious category. COMMENTS AND ANALYSIS .......19 FOODSERVICE MARKETING: FLORAL WATCH ...................151 Foodservice Distribution Faces New Challenges And Opportunities ......................142 Foodservice companies must find solutions to overcoming INFORMATION SHOWCASE ......160 cost issues and other distribution obstacles. BLAST FROM THE PAST ..........162 DRIED FRUIT AND NUTS: Selling More Pistachios ................................................................148 Healthful snack offers retailers promising opportunities to build profits. SPECIAL REPORT FLORAL AND FOLIAGE MARKETING: COOL UPDATE ....................22 Certified Programs Gaining Floral Fans .................................................153 Retailers attract socially responsible consumers with certified cut flowers. COLORADO PROVIDES PRIME LOCATION ................54 Freight advantage, plentiful organics and SPECIAL FEATURE diverse offerings attract buyers to the Mile FROM THE PAGES OF THE PERISHABLE PUNDIT High State. Wegmans Responds to ‘Double Standard’ Allegation .....................................20 IDAHO POTATOES: THE REGIONAL PROFILE: PHILADELPHIA IMPORTANCE OF BRAND ......74 Philadelphia Stays Ahead In Unstable Economy ..............................................83 Marketing, advertising and promotions Despite freight costs and weak dollar, Philly’s market is overcoming the odds. drive usage and consumer awareness of high-quality Idaho potatoes. Farm-Country Retailer Focuses On Produce ..................................................94 Family-owned Stauffers of Kissel Hill delights shoppers with vast produce offerings. STEPPING UP TO THE PLATE ..80 The Wisconsin potato industry started Acclaimed Chef Earns His Reputation .......................................................97 preparing years ago for today’s marketplace The menu changes with the seasons at James, challenges and trends. known for its focus on local produce. 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. SEPTEMBER 2008 • PRODUCE BUSINESS 3 PRODUCE QUIZ WWW.PRODUCEBUSINESS.COM THIS MONTH’S WINNER: SEPT. 2008 • VOL. 24 • NO. 9 Louie Macias President & Editor-in-Chief • JAMES E. PREVOR Louie Macias has come a long way since [email protected] Produce Specialist working as a courtesy clerk at one of the Bashas’ Publishing Director • KENNETH L. WHITACRE 160 supermarkets owned by Bashas’, Inc., [email protected] Chandler, AZ Chandler, AZ. Today, Macias works at the Managing Editor • JAN FIALKOW corporate level as a produce specialist in [email protected] charge of merchandising, gross profits and sales. “I started working in the produce Special Projects Editor • MIRA SLOTT department right out of high school — and [email protected] that was 42 years ago.” Assistant Editor • AMY SHANNON His duties include visiting stores on a reg- [email protected] How To Win ular basis to make sure the produce depart- Circulation Manager • KELLY ROSKIN To win the PRODUCE BUSINESS Quiz, the first ments are well merchandised and look pic- [email protected] thing you have to do is enter. The rules are ture-perfect. “The best parts about working Executive Assistant • FRAN GRUSKIN simple: Read through the articles and in this industry are the people and opening [email protected] advertisements in this issue to find the new stores,” he explains. “I enjoy setting European Bureau Chief • ROBERT ZWARTKRUIS answers. Fill in the blanks corresponding them up and trying out different things with [email protected] to the questions below, and either cut along the departments.” the dotted line or photocopy the page, and Production Director • DIANA LEVINE send your answers along with a business In operation for more than 75 years, the [email protected] family-owned chain operates under three card or company letterhead to the address Production Leader • JACKIE TUCKER banners: Food City, Bashas’ and AJ’s Fine listed on the coupon. The winner will be Production Department chosen by drawing from the responses Foods. Louie explains, “Our No. 1 priority is FREDDY PULIDO received before the publication of our customer service and quality.” JOANNA ARMSTRONG November issue of PRODUCE BUSINESS. The As the winner of the PRODUCE BUSINESS MATT WINANS winner must agree to submit a color photo Quiz, Louie wins a set of golf clubs. to be published in that issue. Trade Show Coordinator • JACKIE LOMONTE [email protected] WIN AN ORGANIC COTTON TERRY BATHROBE Contributing Editors Light, creamy off-white terry robe is made of 100 percent organic cotton. Bleach-free and MEREDITH AUERBACH, CAROL BAREUTHER, DUANE CRAIG, FRITZ ESKER, PETER LAVERY, dye-free, it is made in Europe under fair labor conditions using organic natural fibers. JACKIE LIEBERMAN, LISA LIEBERMAN, K.O. MORGAN, Three unisex sizes available: Unisize, XS (5’5” or under) and XL (6’ and over). LIZ PARKS, JULIE COOK RAMIREZ, KIMBERLY RINKER, JODEAN ROBBINS, BARBARA ROBISON, TRISHA WOOLDRIDGE, JON VANZILE QUESTIONS FOR THE SEPTEMBER ISSUE Advertising 1) What is the PMA booth number for Columbia Marketing International? __________________ ERIC NIEMAN, ASSOCIATE PUBLISHER [email protected] ____________________________________________________________________________________ JENNIFER JORDAN [email protected] 2) What is the street address for Habelman Bros.?________________________________________ SANDY LEE [email protected] ____________________________________________________________________________________ BILL MARTIN [email protected] 3) What is the web address for Four Seasons? ___________________________________________ ELLEN ROSENTHAL ____________________________________________________________________________________ [email protected] Floral Department Marketing 4) What is the fax number for Thermal Tech? ___________________________________________ E. SHAUNN ALDERMAN [email protected] ____________________________________________________________________________________ Marketing Solutions and Integrated Sales JIM DELEGUARDIA 5) What is the toll-free number for Riveridge? ___________________________________________ [email protected] Send insertion orders, payments, press ____________________________________________________________________________________