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 ______releases,photos, letters to the editor, etc., to: PRODUCE BUSINESS 6) What is the P.O. box number for the Wisconsin Potato & Vegetable Growers Association? __ P.O. Box 810425 Boca Raton, FL 33481-0425 Phone: 561-994-1118 Fax: 561-994-1610 E-mail: [email protected] This issue was: ❏ Personally addressed to me ❏ Addressed to someone else PRODUCE BUSINESS is published by Phoenix Media Network, Inc. James E. Prevor, Chairman of the Board Name ______Position ______P.O. Box 810425 Boca Raton, FL 33481-0425 Company ______Phone: 561-994-1118 Fax: 561-994-1610 Entire contents © Copyright 2008 Address ______Phoenix Media Network, Inc. All rights reserved. City______Printed in the U.S.A. State ______Zip ______Publication Agreement No. 40047928 Phone ______Fax ______Photocopies of this form are acceptable. Please send answers to: SEPTEMBER QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425

4 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 114 WASHINGTON GRAPEVINE A report on the inside happenings of government.

SUBMITTED BY TOM STENZEL, PRESIDENT • UNITED FRESH PRODUCE ASSOCIATION What’s COOL And What’s Not

andatory country-of-origin Produce can be grown safely in countries PLU sticker, a USDA inspector is likely to ask labeling (COOL) may be the around the world, or it can be grown with- the retailer how that claim can be verified. greatest idea ever or a waste out adhering to appropriate safety stan- While the claim is actually the responsibility of money, depending on dards. That is not dependent upon a coun- of the producer/packer that affixed the PLU your view. But like it or hate try sticker on a label but upon the commit- sticker, the retailer must have records of who Mit, COOL will be a reality for produce suppli- sold it the product and be able to trace that ers and retailers doing business in the Unit- item back down the supply chain to the ini- ed States after Sept. 30, 2008. tial stickering. That type of recordkeeping As we launch what is likely to be a multi- You can count on could go far beyond even the Bioterrorism year effort to blend the COOL requirements some level of Act requirement of “one-step forward” and into everyday efficient business systems for “one-step back” in the supply chain. the produce industry, it’s a good time to confusion and stress We’ve communicated to USDA that COOL remember what the law is intended to is not a traceability law, and efforts to verify accomplish, and a few things it is not. over the next year… accuracy of the PLU sticker cannot require First, COOL is an information and mar- multiple new recordkeeping schemes. Con- keting requirement, designed to give con- before USDA issues gress specifically wrote into the law that sumers at retail stores the immediate ability a final set of rules USDA cannot require retailers or suppliers to to learn in which country a produce item keep records “other than those kept in the was grown. Retailers can provide country-of- for COOL. normal course of business” in implementing origin (COO) information through signs, COOL. The goal of COOL is to inform con- pre-labeled packages, PLU stickers and the ment of the person growing that product. sumers about where produce comes from, like, as long as the information is prominent With COOL information becoming more not create a new regulatory infrastructure. enough for consumers to see. Keeping the widespread, the industry needs to help con- 3. Finally, COOL is NOT a punitive law. information in a booklet, or on a computer sumers understand that geography cannot Congress this year made it clear the law is system, is not enough. become shorthand for food safety. Growers, about making a “good faith effort” to inform Prepackaged and pre-labeled produce marketers and retailers working together consumers, not penalizing companies for items easily comply. Much of the challenge have the means to assure every produce occasional mistakes at store level or search- at retail will be dealing with bulk displays item sold in a store has been produced and ing for detailed paper trails and records with- and items too small or otherwise not feasi- distributed under good agricultural and han- out which massive fines will be levied. Con- ble for individual labeling. dling practices. That is a pledge every retail- gress went so far as to allow USDA to fine Put simply, that is all there is to COOL — er makes with his/her reputation every day. only a company that has been shown to government has instructed all produce dis- 2. COOL is NOT a produce traceability “willfully” disregard the law. If USDA sees a plays at retail shall convey this information law. One of the most perplexing challenges mismatched sign in the grocery store, it must to consumers. But when it comes to govern- is how to demonstrate the accuracy of COOL advise the store and give it 30 days to correct ment regulation, nothing is ever as simple as labeling. It’s easy to tell whether a COO sign the problem. The legal standard of “willful” one would like. The U.S. Department of appears above a retail bulk bin. But when a disregard for the law is intended to focus Agriculture (USDA) proposed regulations USDA inspector looks at the specific fruit in only on those stores that don’t bother to label implementing this simple concept run into the bin, how does he or she know the sign at all or intentionally misrepresent where the hundreds of pages, with descriptions of above the display is accurate? What records the produce came from. Even then, these what is, and what is not, acceptable in con- does the retailer need to have to prove the bad actors would have 30 days to make veying this information and documenting its sign is correct, especially considering the amends and get with the program. accuracy for verification. You can count on carton has probably been discarded? It is clear Congress intended COOL tobe some level of confusion and stress over the Retailers are allowed to rely on the truth- implemented to inform consumers. That’s a next year as both industry and government fulness of suppliers in communicating the serious and mighty big task given our indus- try to figure out some of these details before COO of a product. In fact, the law requires try’s complex worldwide supply chain. But USDA issues a final set of rules for COOL. suppliers to accurately convey this informa- it’s also a much more reasonable task with- That’s where looking at what the COOL tion to retailers. But suppose a piece of fruit out the added baggage of food-safety impli- law is NOT intended to do may be helpful. is pre-labeled with a PLU sticker that reads cations, recordkeeping for traceability and 1. COOL is a NOT a food-safety law. “Product of Chile.” Even with fruit carrying a fears of fines for making a mistake.

6 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 127 THE FRUITS By James Prevor OF THOUGHT President & Editor-in-Chief Sustainability Pull-Back?

ustainability as a theory and political movement operates real action on this front may simply be deferred. on a different level from sustainability as practiced by Instead, what sustainability has become in the public policy individual businesses. For businesses are, inherently, con- arena is a kind of front for other interests. So, for example, corn- strained in their choices by the necessity of profitable based ethanol gets backed by corn interests and those looking to operation. reduce dependence on foreign oil. Sustainability then becomes a SSo mighty as the argument to reduce, say, carbon emissions flag of convenience that these interests can wave. might be, a business cannot just pay the vig and switch to alterna- The industry is no different. There has always been a market tive energy vehicles or install photovoltaic cells unless market for locally grown product. Sweet corn promotions and the like forces and government regulation have conspired to make it eco- have been staples of summer merchandising in the Northeast and nomical to do so. If a business does otherwise, it will make its cost Midwest for generations, but the recent celebrations of “local” are structure uncompetitive in what is always, in the produce indus- unlikely to survive major decreases in transport costs. try, a very competitive marketplace. For the most part, retailers are using the “local” banner to grab By the same token, a company cannot long resist being green if opportunities to save money. In fact, the way many do it, they are markets and governments have set the incen- expecting their “strategic” suppliers to be tives such that green companies will have a ready with fill-in product if weather should competitive edge. Has the make “local” product unavailable. Of course, Indeed much of the motivation by top cor- this means that big national shippers have to porate executives to move on sustainability has sustainability grow extra product, which means a big chunk been driven by the conviction of these execu- of the carbon footprint is already expended tives that energy will become more expensive movement even if the product winds up being “disced” and that some governmental scheme — either under. a carbon tax or a “cap-and-trade” mechanism reached its It is easy to attack retailers, of course, but for carbon — will soon be imposed. just as politicians know the voters, retailers It has been this conviction that justifies zenith? know what consumers want and what con- actions which otherwise might not be fully jus- sumers want right now is to feel virtuous tified by current market conditions. about buying local while also getting the Yet just as sustainability had started to permeate the industry, cheapest price and no interruption in supply. Retail policies, even one senses a pull-back. Part of it is consumer-driven, with the real when self-serving, tend to grow out of consumer demand. estate crash and fear of a recession leading to a dive in consumer Sustainability contains, as a kernel of meaning, a vision for a confidence. In such a situation, sustainability starts to be seen as a beautiful world. Isn’t it odd that the realization of such a vision luxury good — and one we maybe cannot afford right now. should depend crucially on keeping gas prices high? Such is the On the public policy front, politicians pay tribute to the idea of case, however, and if fuel costs retreat, the local programs will producing new high-tech “green” jobs. The only idea that seems to retreat as well. have gained traction, though, is the idea of spending less money There is some low hanging fruit on every tree and, certainly, overseas for oil and, although the idea may intersect with talk of the sustainability movement has done us all real good by making windmills and solar power, it also is likely to involve drilling for oil us look at our procurement, packaging, logistics and resource use and gas and use of coal and nuclear power. In any case, it is a to find efficiencies and avoid waste. thought driven by some mixture of patriotism and economics, and Yet, just as sustainability began, one senses it has momentarily sustainability is only a coincidental factor. crested. Some of the reason is the short term issues of the econo- In truth, political will on sustainability is weak. To start with, my and recently receding fuel prices, but, perhaps more signifi- our system is not very strong at getting people to sacrifice now for cantly, sustainability has morphed from what Al Gore thought long term benefits. Even substantial carbon output reduction is would be a great “generational mission” to a rather prudential busi- projected to have no benefit at all for decades. In addition, it is ness practice responding to high energy prices. hard enough to get our own government to come to a consensus. Instead of Gore’s “moral and spiritual challenge,” raising the With projects such as carbon reduction, it does little good for the prospect of sustainability leading us to live more elevated and United States — or even the Western nations — to act alone. So meaningful lives, it turns out that sustainability means we better effective action deepens crucially on finding a program agreeable watch the tire pressure and check the light bulbs. Nothing wrong to countries at widely varying states of development and with dif- with that, but not as paradigm-busting and life-transforming as we ferent and often opposing interests. It is easy to imagine that any were once were led to believe — or hope. pb

8 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 64 PRODUCE WATCH Sustainability Success Stories

ALBERT’S CELEBRATES 25 YEARS Albert’s Organics, Inc., Bridgeport, NJ, celebrated 25 years of bringing organic growers and retailers together as the nation’s leading distributor of quality, organically grown produce and perishable items. Albert’s donated half of the net profits — up to $25,000 — it earned in February from its Grateful Harvest brand sales to the Organic Farming Research Foundation (OFRF), Santa Cruz, CA. Albert’s is the first organic distributor with nationwide coverage to receive organic certification.

Reader Service No. 300

AURORA ADOPTS PET PACKAGING CAL GIANT DONATES CHEP JOINS Aurora Products, Inc., a Stratford, $30,000 TO CANCER ENERGY-EFFICIENT EFFORTS CT-based packer and distributor of Members of the Watsonville, CHEP Equipment Pooling Systems, branded, all-natural and organic CA-based California Giant Berry Orlando, FL, joined the SmartWay dried fruits, nuts, trail mixes and Farms (Cal Giant) team donated Transport Partnership, a collabora- granolas, introduced new $30,000 to the American Cancer tion between the U.S. environmen- packaging for its Aurora Natural Society Relay For Life on Aug. 9 tal Protection Agency (EPA) and line. Made from more than 50 per- in Watsonville. Cal Giant served the freight industry designed to cent post-consumer recycled as the presenting sponsor. Each increase energy efficiency while polyethylene terephthalate (PET) member on the Cal Giant’s “Hope significantly reducing greenhouse packaging, these plastic containers In A Big Way” team participated gases and air pollution. CHEP, a are clear, sturdy and stackable. by fund-raising for the cause, and leader in pallet and container pool- Aurora launched the new line, the Watsonville community ing services leasing, works with which is available in 15 snack was extremely supportive. The EPA tools and strategies to measure varieties, to show retailers and 24-hour celebration of life allows and reduce its environmental consumers it cares about their participants to join the effort to impact and the efficiency of its health and the environment. fight cancer. freight operations and fuel-usage.

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CLARK INTRODUCES GREEN PACKAGING INITIATIVE Clark Products, Inc., Grove Village, IL, unveiled its One World green products program available across the Midwest and Northeast. The program features approximately 250 SKUs of packaging and janitorial items featuring significant environmental benefits, such as bio-degradability, compostability, recyclability or source-reduction opportunities. The packaging bundle includes items made from corn and other plant resins that are renewable resources. Clark also offers free One World packaging audits to its 5,000 customers. Reader Service No. 304

10 PRODUCE BUSINESS • SEPTEMBER 2008 PRODUCE WATCH Sustainability Success Stories

DECAS CRANBERRY TO CONDUCT ENERGY STUDY Decas Cranberry Products, Inc., Carver, MA, plans to launch a 1-year feasibility study to determine whether wind is a sustainable source of power for its Massachusetts operation. It will be funded in part by a grant from the Massachusetts Technology Collaborative (MTC), Westborough, MA. Harnessing the power of the wind for energy, the 1.65 megawatt (mw) wind turbine is expected to produce 3,279,000 kilowatt hour (kwh) or roughly half the energy needed to run Decas operations. Reader Service No. 305 Photo by Craig Crenna

DOLE RECOGNIZED FOR EARTHBOUND REMAINS FOUR SEASONS EARNS SUSTAINABILITY EFFORTS COMMITTED TO THE ENVIRONMENT ENERGY STAR AWARD Dole Standard Fruit Co. de Costa Earthbound Farm, San Juan Four Seasons Produce, Inc., Rica, a subsidiary of Dole Food Co., Bautista, CA, committed to sustain- Ephrata, PA, earned the U.S. Inc., Westlake Village, CA, was able farming for over 24 years, Environmental Protection honored with the 2007 Overall works with 150 farmers growing on Agency’s (EPA) Energy Star, the Excellence Award from the Costa about 40,000 acres. Its organic national symbol for superior Rican Industry Association for the farming methods will keep about energy efficiency and environmen- second time in Dole’s history. 13 million pounds of chemicals out tal protection for its Wabash Road Additionally, Dole Food was named of the environment in 2008 alone. distribution center. Four Seasons one of the world’s most ethical Recent initiatives include has improved its use of energy and companies for a second year in a switching to 99 percent post-con- resources across the entire row by Ethisphere Magazine. Dole sumer/1 percent post-industrial organization, including installing was selected for the award based recycled corrugate for all shipping energy-management software in on factors such as code of ethics, cartons and using biodiesel in farm the refrigeration system and investment in innovation and com- equipment and improving energy reducing electric use by more than mitment to sustainability efforts. and resource conservation efforts 50,000 kwh per month. throughout its facilities. Reader Service No. 306 Reader Service No. 307 Reader Service No. 308

FRESHSENSE LAUNCHES ZEAL TREE FRUIT FreshSense, the Parlier, CA-based marketer of Ripe ’N Ready peaches, plums and nectarines, has introduced Zeal, a tree-fruit label for items certified as sustainable through independent audit. In order for fruit to be packaged under the Zeal label, it must meet strict standards developed and maintained by Protected Harvest, the Soquel, CA-based non-profit entity overseeing Zeal’s audit systems. Zeal appeals to consumers who are both concerned about the environment and looking for great-tasting fruit. Reader Service No. 309

SEPTEMBER 2008 • PRODUCE BUSINESS 11 PRODUCE WATCH Sustainability Success Stories

GILLS ONIONS TAKES ACTION ON CLIMATE CHANGE Gills Onions, Oxnard, CA, became a founding reporter of The Climate Registry, a Los Angeles, CA-based, non-profit organization established to measure and publicly report greenhouse gas (GHG) emissions in a common, accurate and transparent manner consistent across industry sectors and borders. A forerunner in the fresh produce processing industry, Gills Onions has demonstrated environ- mental stewardship on several fronts by voluntarily committing to measure, independently verify and publicly report its GHG emissions on an annual basis.

Reader Service No. 310

GRIMMWAY EARNS PG&E AWARD H. BROOKS BECOMES HOLLANDIA LAUNCHES Grimmway Farms, Bakersfield, CA, FOOD ALLIANCE CERTIFIED SUSTAINABILITY VIDEO was awarded San Francisco, H. Brooks and Co., LLC, New Hollandia Produce, Inc., CA-based Pacific Gas and Electric Brighton, MN, continues to develop Carpinteria, CA, grower and ship- (PG&E) Company’s Clean and local food initiatives and increase per of Live Gourmet lettuces and Green Award for demonstrating marketing of local and sustainable watercress, launched an online exemplary leadership in energy products. The family-owned streaming video, Our Commitment efficiency and environmentally company recently became certified to Sustainability, to further its ongo- progressive business practices. by Food Alliance, Portland, OR, to ing commitment to the environ- Grimmway has averaged two better serve its customers with ment and common-sense conserva- major energy-efficiency projects sustainably grown products. This tion. It was created to meet growing per year for the past 19 years, partnership brings opportunities consumer interest in a positive and conserving enough power to for growers to advance distribution constructive dialogue on sustaina- provide energy needs for more of their products by using bility. Hollandia maintains a policy than 4,000 homes and eliminating H. Brooks as their local and of environmentally friendly best the emission of more than 31 regional hub for distribution, practices and consistently chooses million pounds of carbon dioxide providing consumers easy access vender partners that provide sus- per year. to local and sustainable products. tainable product solutions.

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L&M COMMITS TO SUSTAINABLE INITIATIVES L&M Companies, Inc., Raleigh, NC, is working closely with experts at the Safe Quality Food (SQF) Institute, a division of Arlington, VA-based Food Marketing Institute (FMI), to develop and define how it documents and measures its sustainability efforts. L&M’s goal is to continually improve its processes and conduct its business in an environmentally and socially responsible manner. L&M’s initiatives include water preservation, recycling, sustainable farming, energy conservation and use of biodegradable bags. Reader Service No. 314

12 PRODUCE BUSINESS • SEPTEMBER 2008 PRODUCE WATCH Sustainability Success Stories

MIATECH CREATES GREEN-LABELING PROGRAM Miatech, Inc., Clackamas, OR, launched Energy Green, a labeling program designed to identify and promote its energy-efficient products, including mechanical equipment for saving energy in refrigerated cases, power-efficient humidification equipment and water-saving products. Labeling allows Miatech’s customers to make informed purchasing decisions by providing them with a means of easily identifying products that fit energy-efficient standards. Only the most eco-friendly products receive the Energy Green label.

Reader Service No. 315

NASH’S OWNER WINS NATALIE’S ORCHID ISLAND NATUREWORKS STEWARDSHIP AWARD RECEIVES AWARD HOSTS EARTH MONTH Nash Huber, owner and operator, Natalie’s Orchid Island Juice Co., NatureWorks, LLC, Minnetonka, Nash’s Organic Produce, Sequim, Fort Pierce, FL, was named a Save MN, hosted its fourth annual Ingeo WA, was awarded the Steward of Energy Now plant by the U.S. Earth Month in May, focusing on the Land Award from the Department of Energy (DOE) for its Ingeo brand’s sustainable and American Farmland Trust (AFT), its reduction of energy usage and environmental message for Washington, D.C. Nash received carbon footprint. Natalie’s Orchid natural-in-origin products that the $10,000 AFT prize for his Island worked with the University appeal and perform very well for environmental stewardship and of Miami, Miami, FL, to evaluate food packaging, serviceware and farmland protection efforts. key industrial process systems and more. Ingeo Earth Month 2008 Nash and his wife, Patty McManus, identify cost-saving opportunities showcased commercial brands are leaders and critical advocates throughout its plant. DOE conducts with new ranges of innovative for the preservation of farmland energy assessments to help products available today. Created and are involved in a variety of manufacturing facilities across the for consumers living a socially efforts to raise public awareness nation identify opportunities to responsible lifestyle, Ingeo is about the issue. conserve energy and money. made with 100 percent annually renewable plant resources, not oil. Reader Service No. 316 Reader Service No. 317 Reader Service No. 318

NOBLE KICKS OFF GO HEALTHY SNACK PACK CLEMENTINE Noble Worldwide, a Winter Haven, FL-based, fourth- generation grower, packer and shipper of fresh Florida citrus, kicked off its Go Healthy Snack Pack Clementine in a new, convenient, ready-to-go 3-pack. This anytime, anywhere snack encourages healthful consumption of fruit loaded with vitamin C and natural antioxidants. The new product packaging is comprised of ecologically sound clamshells and labels made from compostable corn plastic. Reader Service No. 319

SEPTEMBER 2008 • PRODUCE BUSINESS 13 PRODUCE WATCH Sustainability Success Stories

OPPENHEIMER BRAND REFLECTS SUSTAINABILITY COMMITMENT The Oppenheimer Group, Vancouver, BC, Canada, is looking internally and externally for opportunities to reduce its carbon footprint and better the communities it does business in. Across all 12 of its offices, Oppenheimer has put comprehensive recycling programs in place, installed power-saving office equipment and lighting and upgraded to more energy-efficient transportation methods and storage facilities. The company is also researching green transportation alternatives to reduce its impact on the environment.

Reader Service No. 320

OZONATOR NATURALLY PREMIER MUSHROOMS PBH SPREADS EXTENDS SHELF LIFE EARNS CERTIFICATION MORE MATTERS MESSAGE Ozonator, LLC, Las Vegas, NV, Premier Mushrooms, LP, Colusa, Produce For Better Health offers the Ozonator, a natural tool CA, was awarded the NutriClean Foundation (PBH), Wilmington, to help consumers increase the lab-tested and certified pesticide- DE, prints its Fruits & Veggies — storage life of foods and thus free designation for its full line of More Matters logo on more than achieve meaningful financial sav- white, brown and portabella 1,000 food labels in stores nation- ings. It releases enough ozone, a mushrooms. Scientific Certification wide on nationally marketed, powerful disinfectant, to elevate Systems (SCS), Emeryville, CA, brand-name products and private- the cleanliness of the environment issued the certification. SCS’s label products. Its Adopt-A-School inside a home refrigerator and NutriClean label is reserved for Community Outreach Program extend the life of fresh fruits and products that undergo the rigorous makes a positive impact on several vegetables. Once its job is done, SCS certification program, communities by providing local excess ozone reverts back into use- involving full disclosure of pest schools with Fruits & Veggies — ful oxygen. The company claims management practices, evaluation More Matters Creative Pockets this type of non-chemical disinfec- of pest management practices, Teaching Kits that help children tion is key to the balance of nature. on-site worst-case sampling of learn the importance of eating a products and laboratory testing. variety of fruits and vegetables.

Reader Service No. 321 Reader Service No. 322 Reader Service No. 323

RAINIER OPENS ENERGY-EFFICIENT FACILITY Rainier Fruit Co., Selah, WA, opened a shipping facility in Selah with energy-conservation upgrades to reduce total lighting and refrigeration use by approximately 55 percent. The newly constructed facility features a first-of-its-kind heat pump compressor, high-efficiency condenser selection, skylights and fluorescent lighting with motion sensors and photo cells, fast-acting warehouse doors and high-performance seals on loading back doors. Rainier is dedicated to farming practices that use principles of good stewardship. Reader Service No. 324

14 PRODUCE BUSINESS • SEPTEMBER 2008 PRODUCE WATCH Sustainability Success Stories

RPA ANNOUNCES ANNUAL EDUCATION FORUM The Reusable Packaging Association (RPA), the Las Vegas, NV-based organization formerly known as the Reusable Pallet & Container Coalition (RPCC), announced its eighth annual education forum. The 2008 Education Forum is set for Sept. 24-25 in Oakland, CA. The forum, Choose Reusables! Driving Economic & Environmental Value With Reusable Packaging, is designed for top managers, executives, packaging engineers, materials managers, supply-chain directors and other decision makers who are interested in adopting reusable packaging systems or maximizing their existing efforts. Reader Service No. 325

STEMILT NAMED WASHINGTON’S TANIMURA &ANTLE PRESENTS TURBANA INVESTS IN SOCIAL ‘GREENEST’AG COMPANY SOCIAL RESPONSIBILITY REPORT RESPONSIBILITY PROGRAMS Stemilt Growers, Inc., Wenatchee, Tanimura & Antle, Salinas, CA, Turbana Corp., a Coral Gables, FL- WA, was honored by Seattle, WA- released its first-ever Social based banana importer that is par- based Washington CEO Magazine as Responsibility Report, which tially owned by Uniban, Medellín, the greenest agriculture company outlines sustainability projects it Columbia, has worked with in Washington state for its successfully completed in 2007. Fundauniban, a social-welfare leadership in environmental sus- The report focused on foundation created by Uniban as a tainability. Additionally, Larry sustainable farming practices, soil means to improve the quality of Cadwell, operator of Cherryview management, solar nursery life for plantation workers, their Farms, a Benton City, WA-based heating, integrated pest families and their communities. grower of early cherries for management, recycling, reusable During the past 21 years, Stemilt, utilizes sustainable packaging and water and energy Fundauniban has improved the processes throughout the 8-acre conservation. The company’s lives of 13,500 families, 17,797 orchard. Cadwell implemented a approach to farming includes students and 5,400 children, drip-irrigation system that releases sustainable practices that created 4,600 housing solutions water only when trees need water- were implemented before the and built 19,000 aqueducts that ing along with a nutrition program sustainable concept was ever benefit 25,000 people. that relies primarily on compost to applied to growing. fuel the soil.

Reader Service No. 326 Reader Service No. 327 Reader Service No. 328

UNCLE MATT’S INCREASES ORGANIC CITRUS ACREAGE Uncle Matt’s Fresh, the Clermont, FL-based organic produce arm of Uncle Matt’s Organic, continues to expand the number of its organic citrus growers and the amount of acreage dedicated to organic citrus. Uncle Matt’s currently manages more than 1,000 acres of citrus groves, including 15 family-owned farms. This number continues to grow as the company helps conventional growers transition to organic. Uncle Matt’s executes an organic farm plan to increase nutrient density, develop bio-diversity and build healthy soils.

Reader Service No. 329

SEPTEMBER 2008 • PRODUCE BUSINESS 15 PRODUCE WATCH Sustainability Success Stories

VIVA HUMANITARIAN EFFORTS WCCPF EMPOWERING PEOPLE WHOLE FOODS SPONSORS SPUR COMMODITY CONSULTANCY Western Cape Citrus Producers’ FARM AID MUSIC FESTIVAL Viva Marketing Strategies (VMS), Forum (WCCPF), Citrusdale, South Whole Foods Market, Austin, TX, LLC, Nogales, AZ, is focusing its Africa, is sponsoring A Harvest of will sponsor Farm Aid 2008 on efforts on building worker Hope, a program designed to help Sept. 20 in Mansfield, MA, along resources in agricultural regions, the people who live on South with Horizon Organic, Boulder, CO. improving conditions in many Africa’s citrus farms and in the The festival will include Farm Aid areas, particularly Latin America surrounding rural communities. founders John Mellencamp, Willie and the Caribbean Basin, and People are sharing ownership in Nelson and Neil Young as well as working with growers and their agricultural enterprises and entire Kenny Chesney and Dave distributors to build a stronger communities are sharing in the Matthews, a member of the Farm export image for them. VMS is social structures that have been Aid Board of Directors. Since 1985, organizing these types of activities built around the farms. Through Farm Aid has raised more than with interested grower operations partnership with commercial $30 million to support programs and working with international farmers, they share in technology that help farmers thrive, change charitable organizations that are and skills transfer. the dominant system of industrial already involved in these efforts. agriculture and promote family-owned farms. Reader Service No. 330 Reader Service No. 331 Reader Service No. 332

Producel 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] You work hard… Your advertising should too.

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16 PRODUCE BUSINESS • SEPTEMBER 2008 U.S. COMPANIES WIN BIG IN BEIJING

Aramark, Cal Giant, Driscoll and other suppliers earn golden approval at the 2008 Olympic Summer Games. — BY PETER LAVERY Photo courtesy of Driscoll

e all dream of unwavering client loyalty, captive-audience clien- Kasumoto is “very, very well versed in Chinese culture and business tele and pioneering new avenues of business and virgin markets. aspects,” notes Chillon. He assessed demand for Driscoll’s products, only to W However, when that dream comes true and it is time to serve a discover not only that there was significant demand for Driscoll’s brand menu of more than 800 recipes comprising more than 3.5 million meals in and its specific products but that there was also a “solid demand for other one month to feed a drastically diverse crowd of more than 60,000, those sectors of the industry, including foodservice, produce and other sectors.” Olympic dreams can remind you to be careful what you wish for. Unless Assessing demand identifies the end game, which begs the question of you are the Philadelphia, PA-based foodservice giant Aramark Corp. or its how to deal with Chinese import companies and government officials to suppliers for the 2008 Olympic Summer Games in Beijing, China. Califor- open the door. “It was just a matter of could we get the product there,” nia Giant Berry Farms (Cal Giant), Watsonville, CA, Driscoll Strawberry Chillon reports. “The door seemed to swing open, if you will, after it had Associates, Inc., Watsonville, CA, and the other suppliers have just finished been slowly creaking open [for the past few years], when the Olympic ath- feeding the dignitaries, staff, coaches, trainers, spectators, media and, of letes named strawberries third in the list of foods they wanted to have at the course, Olympic athletes. games. Hopefully, the quality of the product we delivered will demonstrate The Beijing Organizing Committee for the Olympic Games (BOGOC) to Chinese officials the benefit of opening the market to us.” selected Aramark along with the Beijing Tourism Group (BTG) to handle all When asked about the tremendous amount of paperwork and diploma- catering operations for the Olympic Village, two media centers and two cy involved in this first export, Cindy Jewell, director of marketing for Cal media villages during the Olympics. This was the largest Olympic operation Giant, notes, “We are definitely charting new territory here, and we are Aramark, which has an established division in Beijing, ever handled. This being extra careful and working not to step on toes accidentally, to follow year’s Olympic Games also mark the 40th anniversary of Aramark’s first all protocols very carefully.” Olympic effort, when it handled culinary operations for athletes in the Jewell also notes that the timing of this market opening is important, 1968 Olympics in Mexico City, Mexico. given that the Chinese population continues to grow and present a great On scale alone, successfully mobilizing a staff of more than 7,000 man- opportunity for more produce imports. agers, chefs and employees from China, Ireland, the United Kingdom, Ger- The California Strawberry Commission (CSC), Watsonville, CA, lent its many and the United States, and thousands of culinary and hospitality stu- help to ensure the historic first shipment of U.S. strawberries to China was dents from schools around Beijing and from U.S. universities is an impres- a success, explains Mary DeGroat, director of marketing and communica- sive feat. To illustrate the market significance of Aramark’s undertaking, tions. This year’s Olympic Games proved to be a phenomenal opportunity consider the volume of produce purchased and prepared for these games: for U.S. produce in “charting new territory” for U.S. strawberry growers. The 37,000 kilograms of potatoes, more than 1 million apples, just under 1 strawberries for the first shipment to China were harvested on Aug. 2, sent million bananas, 684,000 carrots, 21,000 kilograms of onions, 22,000 kilo- to Los Angeles International Airport (LAX), Los Angeles, CA, and flown to grams of mushrooms and 20,000 heads of lettuce for a “World Menu” of Beijing, where Chinese officials held the shipment for 12 hours after it 160 vegetable and potato dishes, 128 rice and pasta dishes, 400 desserts, arrived for government inspection. Following a successful inspection, half pastry and bakery items and 320 separate main-entrée dishes. the shipment was sent to the Olympic Village while the other half was sent Until the Beijing 2008 Olympics, strawberries grown in the United to the U.S. High-Performance Center and the USA House for a VIP recep- States had never been commercially shipped into mainland China. Driscoll tion attended by President George W. Bush. and Cal Giant broke that barrier in a joint effort with Chinese import and “It is nice to know that we are part of the Olympic Games,” states Jew- supply specialists such as Beijing Baiguo Shennong Fruit Delivery Co., Ltd. ell, noting Cal Giant’s overall marketing position focuses on health, fitness on Aug. 5, 2008, when the first shipment of strawberries harvested from and an association with a diet that includes strawberries. In addition to its California were served at the 6,000-seat Olympic Village Dining Hall in Bei- participation in these games, CalGiant also sponsors a U.S. cycling team, jing. “We have had irons in the fire there for the past few years, so this is the Tennis Channel’s coverage of Wimbledon and diet and fitness messag- really the overnight-success story that never happens that way,” explains ing in association with its sponsorship of the popular children’s TV show Gloria Chillon, director of marketing for Driscoll. “We have been making Sesame Street. trips to China since 2005 [when California Gov. Arnold Schwarzenegger While Aramark bought and prepared enough carrots to circle the also traveled to China to promote California produce]. Kenny Kasumoto, 90,000-seat National Stadium in Beijing 150 times, the strawberry won the our export sales manager, has done these trips for a few years now.” medal for opening a new market to Western produce in China. pb

SEPTEMBER 2008 • PRODUCE BUSINESS 17 RESEARCH perspectives BY BRYAN SILBERMANN, PRESIDENT • PRODUCE MARKETING ASSOCIATION Market Disruption: Challenge Or Opportunity? ot a day passes now without rising business practices get even further pinched — food prices making headlines around and the produce supply chain cannot be ost is only one the world, and produce is no excep- expected to absorb the line on prices indefinite- tion. The latest Consumer Price Index ly. Plus, cost is only one item on board a truck- item on board data shows fresh produce prices up 6 load of market disruptors currently being faced Npercent from this time last year — that’s three by the fresh produce industry. a truckload percentage points higher than the normal Market disruption is defined as “situations C year-to-year increase. Given the current pro- causing markets to cease functioning in their of market disruptors duce marketing climate being anything but traditional manner.” Price, the slowing econo- currently being faced normal, historical data has become a poor my, sustainability, the “locavore” movement, predictor of what our industry and produce- food safety — these are all disruptors of our by the fresh produce buying consumers are facing in the months traditional market paradigms that have and years ahead. Produce Marketing Associa- merged into a perfect storm that I believe is industry. tion (PMA) recently sought to learn how con- changing our industry forever. Serious market sumers feel about the rising price of produce. forces we have never seen before at this level Most surveyed consumers told us they — and certainly not all at once — are advanc- costs. Retailers are dramatically shifting consider food-cost increases extremely seri- ing a brave but scary new world. To survive their formats, such as the current explosion ous. If produce prices jump as much as 26¢ to means finding opportunity amid challenges, of small-store formats — think Tesco and 50¢ per pound, many say they would migrate and opportunity will come only when we Bloom, for example. Foodservice is doing away from fresh produce. Most consumers tell challenge ourselves to question how we have everything possible to reduce plate costs us they would move to less expensive pro- done things in the past and why. (presenting an ever-greater opportunity for duce or canned and frozen options. Nearly We have grown used to cheap everything, produce, by the way). Every link in the sup- one in five — 19 percent — claim they would believing that most inputs will always be ply chain grapples with enhancing food abandon produce purchases all together if there for us because we have the dollars to safety and worries about the human and prices reach an extra 51¢ to 75¢ per pound. pay for them: cheap water to grow; cheap financial costs of an outbreak. Every link is These survey results underscore consumers’ labor to harvest, pack, and deliver; cheap getting its head around sustainability. alarm with rising food prices and reveal their packaging to protect; cheap fuel to drive. Is the lesson we’re starting to learn that readiness to alter purchase patterns should American consumers have benefited, too, by the many privileges our businesses and lives produce prices climb further. However, to being treated to the lowest percentage of dis- have grown dependent upon have been what — and to what extent — they would posable income spent on food on this planet. undervalued and are unsustainable — migrate is another question, as other food Consider that in 1950 our grandfathers who whether for our farmers, for our environ- categories are also headed up and one can’t farmed received an average of 41¢ for every ment, or for consumers? We’ve done so many look at produce in isolation. dollar spent on food. Today, the average things because we could. Isn’t it time to start You know and I know that shoppers aren’t return to our growers is less than 17¢. Two asking ourselves the question: do we do the only ones alarmed. There’s no doubt that generations later, we’re drowning in the reali- things the way we do because we should? produce industry members in both retail and ties of modern-day farm economics, trying to I believe we have entered an era of foodservice channels also wrangle with the deal with costs for some inputs that have intense questioning for our industry world- impact of dramatically rising costs on consu- tripled in only a few years. wide, perhaps a tipping point that will dic- mer food prices. We must also continue to And so we see some members of our sup- tate our future for decades to come. The point out the health and other benefits of eat- ply chain closing their doors or changing their availability and cost of inputs, of land, of ing fresh produce. When our industry struggles business fundamentals. Producers are moving water, of labor, will have as much to say not only with rising consumer prices but also farms to Mexico or decentralizing production about our successes as anything that has with astronomical price increases of our own — in part to help tap into consumer interest in gone before. Whether they present chal- inputs ranging from fertilizer to fuel, normal locally grown, in part to reduce transportation lenges or opportunities will be up to us.

18 PRODUCE BUSINESS • SEPTEMBER 2008 COMMENTS & analysis BY JIM PREVOR, EDITOR-IN-CHIEF • PRODUCE BUSINESS Look Beyond The Industry

hen FDA used its authority to This could lead to the substitution of foreign- institute a de facto ban on the sale grown produce for domestically grown. of spinach, tomatoes and If food-safety rules are imposed on the jalapeños, those were all examples growing of produce for sale as fresh, and such of market disruption. When the rules are expensive to implement, but such Wprices of agricultural inputs rise, as fertilizer rules are not applied to produce that is canned he key question has, for example, that is just an example of or frozen since all of this product is cooked or markets. blanched, one might see a consumer shift to is how these As Bryan points out, everything has to be less expensive frozen or canned product. issues are considered in context. Consumer research is Of course, none of this has happened. What T vital but, as is always the case, the answers has happened is a more generalized inflation, resolved by society. you get depend on the questions you ask. If especially of costs such as transportation and you ask consumers what they will do in the fertilizer tied to fuel prices. This has left in the event bus fare will go up — they will say ride lurch those producers who agreed to fixed- the bus less frequently. But if you mention price contracts for a year or two. that train fare and gas prices are also going Inflation is resurging now, and this means up, they may say they have no alternative but producers need to be cautious about signing to pay it as they have to commute to work. fixed-price agreements. They either have to If chicken prices alone go up, beef sales use adjustment clauses or learn to use sophis- than social good. Pesticides may have impacts probably will rise as consumers substitute. If ticated hedging strategies involving petroleum on people or workers that have not been fully both go up proportionately, there may or may futures and other proxies for their costs. accounted for. not be a change in consumption. Possibly On the broader issue of sustainability, the There are many specific issues. The key consumers will try to keep their “meat and core of the matter is actually outside what question is how these issues are resolved by poultry budget” to a fixed dollar amount and any company in the industry can actually do. society. If government decides to trump the thus switch to the cheaper item, but maybe Companies have to operate within the eco- market by instituting bans and mandating not. And much depends on whether that price nomic environment developed by government performance — say by mandating the use of switch is isolated or part of a general infla- policy. Otherwise their competitors will drive ethanol or electric cars — we will indeed have tion. If it is a broad-based inflation, then them out of business, so company-directed market disruption and will, as a society, be wage earners may be getting raises and it will sustainability efforts can only be effective on much poorer than we could have been. If the not impact their consumption very much. the margins — better use of energy, etc. government decides to use market forces to Some segments of the population — say pen- The big questions are social. If immi- correct what economists call externalities by, sioners on fixed incomes — may have to grants, for example, pose a social cost, say for say, imposing taxes on carbon output propor- reduce consumption substantially. free medical care, but immigration is not tionate to the expense such output imposes on Equally with fresh produce, if prices rise, restricted nor costs imposed on their employ- society, we will not have market disruption but we have seen no indications in the consumer ers, it will be difficult for a competitor to uni- instead, the market itself will act as it always surveys that indicate consumers will be laterally spend the money for expensive does to move our consumption from resources reducing consumption of food except in the mechanization. The promoters of sustainabil- that are scarce to those that are plentiful. most extreme of economic situations. If con- ity are fundamentally expressing a belief that Whatever the government does, there is sumers are going to eat just as much as ever, things we do in society — including food pro- no question that change is a constant. As to then they are unlikely to significantly reduce duction — impose costs on society that are whether, as Bryan suggests, such change fresh produce consumption unless fresh pro- not being accounted for in the product itself. shall be an opportunity or challenge, we are duce prices rise disproportionately. The most obvious claim is that by expelling reminded of the Chinese symbols for crisis Right now that is not happening, and the carbon into the environment in the course of pronounced wei ji. reasons it could happen are mostly public pol- producing food, we are promoting global Wei means danger or peril, and ji means icy questions. If immigration is severely warming and that global warming will impose opportunity or crucial point — so the Chinese restricted, for example, then harvesting labor great costs on society. remind us in their very language that a crisis may go way up in price. If we can’t automate There are other claims. The industry uses is always a situation combining both danger economically, the cost of domestically grown a lot of water and the allocation of that water and opportunity. Sound advice from an fresh produce may go up disproportionately. may have been more influenced by politics ancient civilization.

SEPTEMBER 2008 • PRODUCE BUSINESS 19 FROM THE PAGES OF THE PERISHABLE PUNDIT Wegmans Responds To ‘Double Standard’ Allegation

From Jim Prevor’s Perishable Pundit, Aug. 19, 2008

We’ve written about the issue of food safety and locally grown expanded this to include Dr. Wes Kline at Rutgers and the folks at the produce previously, but our recent piece, New York Times Article USDA GAPs program in 2006 and 2007. We will do more training Reveals Double Standard On Food Safety, caught the interest of sessions this year, and are requiring our local suppliers of lettuce and many. Some were large growers applauding attention being paid to leafy greens, tomatoes, netted melons, green onions and herbs to pro- this issue. For example we received this missive from a large grower: vide us with a third-party GAPs audit of their operation. Bill Pool, our Amen, Amen and Amen. Finally the elephant in the room and the Manager Food Safety and Regulation for Produce, assists me greatly crazy aunt in the closet are exposed. A huge double standard. in this process. Certification of these practices becomes effective this As a producer both on the West Coast and in Mexico, this double season, and if the grower is not willing or able to do that, our stores standard in food-safety program criteria and application has me on won’t be able to buy from them. We require our California leafy the edge of bitterness towards an industry I love and have been pas- greens suppliers to be part of the CLGMA, and our local lettuce sup- sionate about for nearly 30 years. pliers to be GAPs certified. — Steve Scaroni, Veg Packer USA and I don’t think we have a double standard. I Veg Packer de Mexico informed the reporter about our food-safety We also heard from several retailers standards with local growers but those com- objecting to the characterization of the situa- Is the company ments didn’t make the article. tion as a “double standard,” most specifical- I thought it was important to address the ly in the form of this letter from Wegmans: prepared to cut off issues raised by your comments and to clari- In The Perishable Pundit dated Aug. 7, fy my position on food safety. 2008, you include a piece entitled New York — David Corsi, VP Produce and Times Reveals Double Standard On Food growers unwilling or Floral, Wegmans Food Markets Safety. In this piece you review an article We thank Dave very much for writing. from The New York Times on locally grown unable to get audited? So many in the industry are afraid to speak produce, and take me and Wegmans Food up, yet if we don’t honestly address our Markets to task for having a double standard problems the industry can never advance. on food safety for large and small growers. And Dave’s letter is actually giving I would like to provide an accurate description of my comments important news. Up to this point in time, Wegmans’ public pro- because, as you know, a reporter doesn’t always report everything nouncements on food safety related to local growers have included you tell them. I work for a company of high integrity and I wouldn’t only a “recommendation” to local growers to get an audit. As recent- work against that value. In fact, I’m very passionate about food-safe- ly as July 7, 2008, in a press release, Wegmans was unwilling to go ty practices across industry, not excluding small growers. I think mini- beyond saying it was “asking” as opposed to “requiring” local grow- mal food-safety standards need to apply across the board. Clean ers to get audited. water, controlling manure, and high levels of personal hygiene for This is the first time that an executive who works for Wegmans has people working with food are critical requirements for any farm, actually said that the company is prepared to cut off growers unwill- regardless of size. And I’ve got to make sure that I’m holding up my ing or unable to get audited. end at the retail level. Now, we found the letter a little unclear so we went back and For The New York Times article, I was asked what’s different today forth with Dave on e-mails, and Dave was courteous enough to clari- with our local growing initiative versus many years ago (in our case fy this point. Here is what he explained to us: over 20 years of local produce procurement). One of my quotes pub- Local growers who provide products of high risk must have GAP’s lished was referencing relationships, not standards. In addressing certification this year. By the ‘09 growing season, we will require the relationships, it would be an oxymoron for this program to be driven entire local grower community to be GAP-certified. centrally when local growers harvest and deliver directly to the We had taken the names of Wegmans’ local suppliers off its website stores. Our store managers and team leaders establish these local and ran the farms against the admittedly incomplete public databases relationships and that’s a key difference in the success of our local available from companies such as Primus and SCS of audited farms. program. I then mentioned about guiding stores, meaning providing We also looked at the USDA program. We found that few of Wegmans’ guidelines for quality specifications, pricing, etc. A key element today local suppliers had been audited by any of these third parties. that’s different from 20 years ago is food safety. Our responsibility is It turns out that what Dave means is that on the items identified as to provide guidance, no pun, on food safety. “high-risk” by the FDA, Wegmans is asking local growers to conduct We’ve worked with Dr. Bob Gravani at Cornell University and audits this season — which is just now approaching high season. By sponsored GAPs training for our local growers since 2005. We their nature, doing the audits this season means the results don’t

20 PRODUCE BUSINESS • SEPTEMBER 2008 FROM THE PAGES OF THE PERISHABLE PUNDIT www.perishablepundit.com affect purchasing eligibility on high-risk items until next season. By the same token, the growers of the rest of the items are being asked to conduct audits during the 2009 season. If they fail, they won’t be eligible to sell to Wegmans in 2010. We have often praised Wegmans for a progressive attitude on food safety, even pointing to its willingness to offer irradiated chop meat. We also have praised Dave Corsi, personally, for leadership on food safety, presenting him with our Single Step Award for his contributions as a co-founder of the buyer-led Food Safety Initiative to resolving the spinach crisis of 2006. And in all fairness, we never saw this as an issue particular to Wegmans. The issue of differential treatment of local growers applies to all retailers who run real local programs. That is to say, programs that really try to bring into the supply chain small growers who were not selling to big chains previously. On the substance of it, Dave’s announcement that Wegmans is mov- ing to mandatory GAP audits for food-safety purposes on locally grown product is very good news. It sets Wegmans up as a leader, and we hope others will follow this example. It is certainly not a complete solution. GAP is itself too vague and self- referential, dependent on a farm’s own assessment of its food-safety needs. Dave further advised us that Wegmans would be requiring, To say that requiring a GAP audit is equivalent to requiring a specifically, “all local growers to be audited/certified using the National farmer to follow the CLGMA is not true, so, once again, we have a GAP’s Program process starting next year. AMS, who has oversight for double standard. this program, also provides oversight for the California Leafy Greens Third, of course, you have the question of what the standards are Marketing Agreements in effect in California and Arizona.” for all other produce items. Wegmans is in a tough position here. It is This AMS/USDA program is also too lax. not a Wal-Mart-size buyer and buys a lot As an example, it requires a score of 80 out of through wholesalers and brokers, which 100 to pass. By contrast, no non-conformance The issue of differential makes it difficult for it to establish proprietary is acceptable with the California Leafy Greens food-safety standards. There are other buyers Marketing Agreement. treatment of local growers out there — often on foodservice, some On the other hand, if the issue is retailers — who set up their own proprietary progress, just the fact that farms have to standards, sitting down with vendors and develop a food-safety plan will encourage applies to all retailers who demanding to see evidence of water tests on focus on the issue, and the prospect of a set schedule, demanding a specific auditor USDA inspectors on the property will focus run real local programs. or performing audits themselves, etc., as a more attention on the issue. This is all to the prerequisite to being approved as a vendor. good. Dave Corsi, Bill Pool and Wegmans should be praised for this Wegmans doesn’t do this. As Dave explained in a subsequent e- move. Wegmans ownership should be saluted for supporting and mail, “We are not asking anything beyond the CLGMA requirement encouraging such a move. and the GAP’s requirements,” — so its national standards are more Yet all this hardly addresses the issue of a “double-standard” and, generic. If Wegmans gets all its local items GAP-audited, it will not be on that issue, Dave’s letter merely confirms the case. out of line with its requirements for most of its national suppliers and, First, all the things Dave is talking about are things that will hap- thus, not be a double standard. pen in the future. As of today, Wegmans is buying unaudited produce Of course, other buyers that do impose special requirements on from local growers. It won’t do this from national producers right now national shippers are often waiving them on local produce and cer- — so that is a double standard. tainly have a double standard. Second, as Dave points out, to use leafy greens as an example, on None of this should overshadow the fact that Wegmans is trying to those products Wegmans is requiring California and Arizona produc- move in the right direction. There are plenty of buyers out there who ers to meet the metrics of the CLGMA. We doubt these metrics are are buying anonymous produce at Amish Auctions, and so the fact perfect, but they certainly are different than simply a GAP audit. We that a GAP audit is being required is a big win. The truth is that asked Dave about this and he responded, “The Leafy Greens Market- audits and water testing, etc., are very expensive on small farms, and ing Agreement and the associated metrics were developed for a spe- the tension between uniform national standards and the viability of cific commodity in a specific growing area. As other commodity-spe- small farmers will not go away soon. cific guidance is developed (such as the tomato guidance), we will In fact, if this controversy makes the industry confront the broader review and implement as necessary.” issue of how amorphous GAP standards are, it might turn into a real- This is a fair enough claim, but it doesn’t really hold up when one ly big win for the trade. That, however, is an article for another day. considers the CLGMA metrics are applied not just in the Salinas Val- For now, we wish to thank Dave Corsi and Wegmans for sharing ley but across the length and breadth of two enormously productive with the industry this important news about the new requirement for agricultural states. From the deserts of Arizona to the coast of Mon- its local vendors to get GAP audits and, more broadly, elaborating on terey, from the mountains to the valleys, these metrics apply. Wegmans food-safety efforts. www.pershablepundit.com

SEPTEMBER 2008 • PRODUCE BUSINESS 21 COOL UPDATE BY JAN FIALKOW

REGULATIONS SET TO TAKE EFFECT ON SEPT. 30, 2008.

n Aug. 5, Produce Marketing Association (PMA), Newark, DE, specific font sizes or types required, therefore PLU labels with COOL and Western Growers (WG), Newport Beach, CA, held a joint are acceptable. O webinar to educate industry members about implementation of • COO declarations can be made on a placard, sign, label, sticker, country-of-origin labeling (COOL) requirements that go into effect on band, twist tie, pin tag or other display. Bulk containers may contain cov- Sept. 30, 2008, as part of the 2008 Farm Bill passed by Congress and ered commodities from multiple origins and must be labeled accordingly. signed into law by President George W. Bush. • Examples of acceptable declarations for COO: Product of the USA, The 2002 Farm Bill enacted mandatory COOL but delayed imple- Produce of the USA, Grown in Mexico, California (state, regional and mentation. In 2004, the U.S. Department of Agriculture (USDA) pub- locality designations are acceptable for everything falling in the produce lished an interim final ruling (IFR) for fish and shellfish only. Imple- category), U.S., Canada, ✓China (check mark with country name). mentation for all other commodities was delayed until Sept. 30, 2008. • Examples of acceptable state, region and locality labeling: Washing- On Aug. 1, 2008, USDA published 7CFR Part 65, an IFR for the remain- ton State apples, Idaho potatoes, California Grown, Northwest cherries, ing covered commodities with Sept. 30 set as the implementation date. Tampico onions. The requirements do not apply to covered commodities produced or • Within five business days of a request by USDA representatives, packaged before Sept. 30, 2008. During the 6-month period following retailers and suppliers must provide records maintained in the normal the implementation date, USDA’s Agricultural Marketing Service (AMS) course of business. Information can be provided on the product, master will focus its resources on education and outreach. shipping container or in a document that accompanies the product Retailers are required to label covered commodities with COOL. A through retail sale. retailer is defined as any person licensed as a retailer under the Perish- • Recordkeeping: Any person engaged in the business of supplying a able Agricultural Commodities Act (PACA). The PACA definition covered commodity to a retailer, directly or indirectly, must make infor- includes only those retailers handling fresh and frozen fruits and vegeta- mation about the country(ies) or origin of the covered commodity avail- bles with an invoice value of at least $230,000 annually. There are able to the buyer. Information can be provided on the product, master approximately 4,000 active licenses (36,000 stores). shipping container or in a document that accompanies the product The law exempts foodservice establishments including those within through retail sale. retail establishments. This exempts restaurants, cafeterias, lunchrooms, • Retailers: For covered commodities sold in pre-labeled consumer- food stands, salad bars, delicatessens and other food enterprises that ready packages, the label itself is sufficient evidence of COO as long as provide ready-to-eat food located with retail establishments. labeled by the identified firm making the claim. For produce departments, the covered commodities include fresh • Retailers: For covered commodities not pre-labeled, records must fruits and vegetables, peanuts, pecans, macadamia nuts and ginseng. identify the covered commodity, the retail supplier and COO. Items are excluded from labeling when a covered commodity is an • Retailers: For products pre-labeled with origin information on the ingredient in a processed food item. A processed food item is defined as shipping container, retailers must either maintain the pre-labeled con- a retail item derived from a covered commodity that has undergone spe- tainer at the retail store as long as the product is on hand or ensure ori- cific processing resulting in a change in the character of the covered gin is included in the record identifying the covered commodity and commodity or that has been combined with at least one other covered retail supplier. commodity or other substantive food component (e.g., chocolate-cov- • Suppliers are defined as including but not limited to growers, dis- ered strawberries and breaded zucchini slices). tributors, handlers, packers and processors. Processed food items are not covered commodities. Examples of • Suppliers initiating claims must possess or have legal access to processed food items are breaded okra, salad mix that contains lettuce records necessary to substantiate claims. and carrots and/or salad dressing, fruit cup that contains melons, • Suppliers must maintain records to establish and identify the bananas and strawberries. immediate previous source and immediate subsequent recipient of a • To be labeled with U.S. country of origin (COO), fresh fruits and covered commodity for one year from the date of the transaction, vegetables, peanuts, pecans, macadamia nuts and ginseng must be • Retail surveillance activities include cooperative agreements, retail grown in the United States. For this purpose, the United States is reviews and supplier audits. defined as the United States and all its commonwealths. • Cooperative agreements are defined as an official partnership • Covered commodities further processed or handled in a foreign established between USDA and state agencies to assist with COOL retail country after meeting the requirements to be labeled as U.S. origin may surveillance responsibilities. These are multi-year agreements contin- bear a declaration that identifies the United States as the sole COO as gent upon the availability of funds. long as the identity of the product is maintained along with the neces- • Enforcement: Only USDA can initiate enforcement actions for sary records, e.g., carrots exported to Mexico to be peeled and sliced. non-conformance with COOL regulations. There is a 30-day period • Imported covered commodities for which origin has already been allowed for violators to comply with regulations. There are civil penal- established by this law and for which no production steps occur in the ties of up to $1,000 per violation for all covered commodities. Any mis- United States retain the origin as declared to U.S. Customs and Border labeling of COO is also in violation of PACA misbranding provisions. Protection (USCBP), e.g., Chilean grapes. USDA is soliciting comments from the industry. Comments must be • All COOL notifications and markings must be legible and in a con- submitted on or before Sept. 30, 2008, to be assured of consideration. To spicuous location. Only abbreviations approved by USCBP may be used; provide comments, visit www.regulations.gov. For additional informa- symbols and flags alone are not acceptable. At this time, there are no tion, visit www.ams.usda.gov.cool. pb

To access the COOL webinar, visit www.pma.com/issues/labeling.cfm or www.wga.com/Default.aspx?tabid=608.

22 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 24 VOICE OF By Alison Worthington THE INDUSTRY The Consumer Side Of Sustainability

ustainability has become a multi-headed, industry-driven tend to focus on personal benefits, convenience and price. cause. Media headlines are far more likely to contain news • 65 percent are mid-level sustainability consumers who, in about alternative energy, socially conscious products or addition to themselves, also consider their surroundings at home the latest efforts to green retail, residential and workplace and their community from a risk perspective. environments than to describe consumer motivations to • 18 percent have extensive awareness and concern encompass- Spurchase or participate in various green behaviors, goods or ser- ing personal and physical well-being, concern for the household, vices. The reality is that consumers are not really as preoccupied the community and the entire planet and its long-term future. with sustainability as the media or industry would like to think. To measure some of their tangible involvement in the World of As a culture of consumption, we tend to fixate on what are per- Sustainability in 2007, we interviewed and observed consumers in a ceived as tangibles, such as products, services and technologies, variety of settings, including home, shopping and socializing. From rather than the driving behaviors behind consumption — or as we these consumer immersions, we learned food and beverages are, by sometimes say at The Hartman Group, “the far, the primary gateways to consumer partici- why behind the buy.” To remedy the dearth of pation in sustainable-purchasing behaviors. consumer insights about sustainability amidst Within food and beverage, however, we found the global environmental hubbub, The Hart- The reality is sustainable foods and beverages are not con- man Group has circled back on 20 years of cul- sumer categories. In other words, consumers do tural research, which began in the 1980s with that consumers not think, “I’ll buy the sustainable carton of analysis of consumer motivations to live and are not really as milk this time.” Instead, they consider certain behave environmentally, a key element that preoccupied with sustainable attributes and symbols, such as involves the world of food. organic, local, fair trade and recyclable, in their In the 1990s, we moved through analysis of sustainability as decision-making process. Each attribute carries cultural preoccupations with health and well- the media or unique benefits; some of the benefits, such as ness — signs of which are embodied in the industry would organic produce, drive purchase while others, growth of organics, premium retail and a chang- such as peace of mind derived from fair trade, ing culture of food. In 2008, we ended up with like to think. are merely added value. an integrated view of consumers who now see Consumers consider produce to be sustain- our culture involved in an overall quest for able for unique reasons. Fresh fruit and vegeta- higher-quality experiences or the good life. Ele- bles are typically considered when cues of local ments of the good life include consumer attempts to live more sus- or organic are present. It is important for agricultural producers and tainably but also spread out to related lifestyle areas where con- marketers to acknowledge that their output is a primary stepping- sumers view their lives and health spiritually and physically in rela- stone in sustainability behavior. Thus, trends in consumer desires tion to their household, their community and finally, the planet. for fresh, local, artisanal fruit and vegetable products not only Findings from our most recent research on sustainability show: underscore where consumers are going in terms of sustainability • Consumers are not that savvy about what sustainability means. but also represent cues toward cultural needs for higher-quality In late 2007, just over half (54 percent) of consumers claimed any experiences. familiarity at all with the term and most could not define it appropri- Many business leaders and marketers are immersing themselves ately upon probing. in strategic thinking and planning around sustainability. The key • Only 5 percent of consumers indicated they knew which com- opportunity is to open up the dialogue with consumers to under- panies support sustainability values. stand how they want sustainability to be portrayed. The Hartman • Only 12 percent indicated they knew where to buy products Group is currently working in detail to understand where consumers from sustainable-minded companies. are going today in terms of diverse categories of goods and services, Despite relatively vague notions about how to define a mainly including everything from food and beverage to home decor. Many media-driven term, 93 percent of Americans have a sustainability companies are asking if sustainability will lose relevance in the cur- consciousness, according to our research. Among this segment: rent economic climate. Our research says that it is more important • 17 percent are periphery sustainability consumers, who con- than ever before. With all things being equal — price, efficacy and centrate an awareness of risk on their own lives and bodies and quality — a green benefit can be the tiebreaker. pb Alison Worthington is director of sustainability practices at The Hartman Group, Inc., a leading consulting and consumer-insights firm, based in Bellevue, WA.

24 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 72 Done well, sustainability can and should be joyful, a kind of celebration of a journey of continuous improvement with priorities established and projects undertaken because doing so is so compelling to stakeholders and, especially, employees.

Introduction By Jim Prevor

his issue is a terrific resource So if a company puts a bunch of solar panels paid such that the company will get a good tackling sustainability from on the roof of all its facilities, it may make a return on investment and thus grow and many angles. Yet sustainabil- prosper? Or is the company overpaying and ity is still, to echo Winston the cost of the solar panels and installation Churchill in another con- A sensible way of will lead to slower growth and less innova- text, “a riddle wrapped in a tion and employment, maybe even bank- mystery inside an enigma.” thinking about ruptcy? A policy is not sustainable if it TThere is the marketing puff — although makes you close up shop. that is becoming less effective as consumer sustainability is A sensible way of thinking about sustain- sensitivity to “greenwashing” grows. Real sus- ability is really to consider it as a kind of tainability, though, is difficult to quantify really to consider it business discipline in which the goal is to and express. Oh sure, there are loads of cer- as a kind of business avoid inadvertent waste. Sustainability, prop- tifications out there, but they only testify to erly considered, functions as a kind of con- one’s conformance with those particular discipline in which sciousness-raising in which a business con- standards, and those particular standards are ducts itself so as to evaluate things that not objectively correct — rather they grow the goal is to avoid might not normally be evaluated. out of the particular priorities and disposi- In the normal course of business, compa- tions of particular people and groups. inadvertent waste. nies tend to neglect many possibilities to do The problem is that no outsider can ever things better. They rely on vendors or the know if a particular action is truly sustain- forces of competition to bring things to their able because the definition of sustainable good press release, it may even be environ- attention. When will a company evaluate its involves confronting three separate responsi- mentally beneficial — but is it sustainable? light bulbs? In many cases never — unless, bilities: environmental, economic and social. That depends on the trade-offs. Is the price perhaps, a new light bulb vendor walks in

26 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 116 the door and suggests it can save the com- 3) A recognition of the influence of floodgates to unlimited and unreasonable pany a lot of money. non-contractual stakeholders. demands from social activists. When will most companies consider Every executive knows you can’t conduct Yet intrinsic to sustainability is that legal telling a vendor to reexamine the way it business without the approval of those par- minimums are not always enough. Our packages something? For the most part ties that have contractual rights. A CEO behavior cannot be justified simply by point- never. However, if an alternative vendor may want to sell the company, but if the ing to its legality; we have to live in our own comes calling and is able to offer a better shareholders don’t agree, the deal is off. Per- skins and think ourselves to be doing the price because it has developed more eco- haps a CEO wants to build a new building right thing. nomical packaging or packaging that can be but if the bank won’t finance it or the city Although this can make for some heated transported more economically, the buyer won’t allow the zoning change needed, con- battles, the self-conscious attitude this may switch suppliers and thus the new pack- struction can’t proceed. requires — not so much dictating any aging becomes standard. Yet being sustain- behavior as dictating that we think about able requires evaluating business practices what we are doing — is really the crucial such as these. Done right, it requires a sys- element of sustainability. temic approach to make sure opportunities And it is not as much of a challenge as for improvement are identified and improve- The key to successfully one might think. In fact, the social compo- ments are sustained over time. nent is a crucial offset to the environmental. In other words, sustainability should be implementing a After all, although helping the planet may be viewed as a business discipline and, in fact, sustainability program an important value, it is not our only value. the key to successfully implementing a sus- So if the environment would benefit from tainability program is in many senses to is in many senses to moving a facility to a less trafficked area but move from random initiatives to a sustain- local people would lose jobs or suffer a loss of ability business management system. move from random income, there is no slam-dunk answer. A bal- Yet if sustainability must be profitable ancing between different interests — social and if it should be integrated into a normal initiatives to a and environmental — is what is required. business operation, how does sustainability sustainability business Although it is true that acknowledging differ from good, solid business practices? social responsibilities beyond obeying the It is an interesting question and the management system. law opens the door to those who would answer is not as clear as advocates of sustain- advocate all kinds of expenditures including ability really would like. It seems, however, increases in labor costs, it is also true that reasonable to identify three key distinctions: conducting such a discussion within the 1) Sustainability biases toward the long One business phenomenon of the mod- context of sustainability creates an automat- term. ern age has been the rise of the NGO or ic framework to moderate unreasonable It is a mistake to install windmills if the non-governmental organization. Sustainabil- demands. After all, urging a larger payroll is return on investment doesn’t exceed one’s ity acknowledges the power of these groups fine but it has to make sense in terms of our cost of capital — no, more than that, it is and thus requires extensive stakeholder economic responsibility. unsustainable. If, however, the return on engagement as a common business practice. With so many multi-generational family investment is adequate but you don’t invest In other words, although it may be true businesses in the industry, many have been because you hope to flip the company next that your neighbors have no legal claim practicing sustainability for a long time. year, it is fair to say that this short-term against your planned as-of-right facility Family businesses are motivated not only in thinking is not a sustainable attitude. expansion, we have learned that agitated the obvious sense of preserving the vitality 2) Sustainability involves carefully con- neighbors can form NGOs and get zoning of the land for the next generation but also sidering the value of “reputational changed or tie things up in court. So, in the broader sense of being cognizant of capital.” although sustainability requires no fixed out- the desirability of sustaining and enhancing Almost all businesses recognize that cer- come — in other words, you don’t have to the reputation of the family and business for tain expenditures, which at first glance seem agree with your neighbors — it does require generations yet to come. like losers, actually produce intangible but outreach. It requires an honest attempt to It is unfortunate that so often sustain- important gains. Supporting the local hospi- understand the opinions of all stakeholders ability comes across as somewhat dour — tal or volunteer fire department or sponsor- and consideration for those opinions. such as being forced to focus on doing what- ing a Little League team may be expected, Many in the industry can embrace all ever is required to win a certification or an and a failure to do these things may make it this. They value being sustainable in refer- emphasis on doing less of a bad thing — difficult to attract employees or may lead the ence to the environment and recognize the such as emitting carbon or pollution. Done city council to be unsympathetic when your value of the economic responsibility as a well, sustainability can and should be joyful, company requires a zoning variance. check on irrational spending, yet they shud- a kind of celebration of a journey of contin- This principle is a tricky one as, of der at facing the third component of sus- uous improvement with priorities established course, it has no natural limits. One can tainability, the social responsibility. and projects undertaken because doing so is assert that building a windmill will win It is understandable why this would be so. so compelling to stakeholders and, especial- goodwill without being able to quantify it. It is through laws such as the minimum wage ly, employees. Yet, nonetheless, it is an important point. law and child labor laws that we compromise Throughout this issue, you will read the It requires at least a consciousness of the among different sectors of our society on thoughts and stories of an industry inching value of being thought well of and thus a issues such as how people ought to be treat- toward a new way of perceiving business, of an willingness to at least attempt to assess that ed. In raising the spectre of some amorphous industry trying to become more sustainable as value in making decisions. “social responsibility,” we seem to open the it comes to understand sustainability. pb

28 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 87 Tackling Sustainability

Retail and foodservice companies are finding ways to implement sustainable operations and best business practices.

By Duane Craig

aking their cue from growing sumers appear to be more willing to embrace the bottom of the list of a dozen other indus- public sentiment, retailers and products associated with sustainability and tries for their efforts at becoming eco-friendly. foodservice operators are health. ACNielsen, New York, NY, reports Only 15 percent said fast-food and full-service spreading their wings over that readers of LOHAS Journal, Louisville, CO, restaurants were making good progress everything green. A recent poll are top spenders in many categories, such as toward becoming environmentally friendly conducted by Global Strategy fresh produce and nuts. (According to its while 30 percent thought grocery stores were. Group, New York, NY, revealed Web site, LOHAS is an acronym for Lifestyles Still, industry efforts are underway to T87 percent of consumers are more likely to buy of Health and Sustainability, a market seg- heighten sensitivities toward sustainability products from retailers committed to environ- ment focused on health and fitness, the envi- within the foodservice sector. The Sustain- mentally friendly practices than companies ronment, personal development, sustainable able Food Lab, managed by staff at the Hart- that don’t convey an eco-friendly image. living, and social justice..) Their spending is land, VT-based Sustainability Institute, out- Now, under the all-encompassing banners expected to almost double by 2010. Nielsen lines its objectives in this regard as “actively of sustainability and corporate social respon- claims 81 percent of LOHAS households pur- seeking ways to bring real change to the ways sibility (CSR), companies are lumping chase items labeled organic and spend four we grow, harvest, buy and distribute food.” together environmental, social and energy times as much as the group of consumers This effort, a coalition of business and policies and a sort of cradle-to-grave who are not ecologically aware. social leaders from three continents, recently accounting of the products they produce, dis- In a separate study conducted by Pack- released a guide for foodservice professionals tribute, sell and consume. While the lines aged Facts, Rockville, MD, Hispanic families that provides clear information on sustain- often blur between the various terms, many were more likely to select organic and fresh able terms, consumer trends and new tech- are not waiting around for clearer definitions. foods than non-Hispanic consumers. nologies in sustainable food purchasing. According to a recent article by Anne- Children are now aggressive consumers, so Through a series of real-life stories told by Marie Roerink, director of research for the it’s not surprising they’re pressuring their par- those in the foodservice business, the guide Food Marketing Institute (FMI), Arlington, ents to buy green. According to Packaged illustrates the misunderstandings that exist VA, 42 percent of retailers have corporate- Facts, of the $123 billion consumers spent on with terms, extending even to terms related level sustainability policies in place and their 3- to 11-year-olds in 2007, $65 billion was to health claims. another 15 percent plan to create them in the on food, and more than half of 6- to 8-year- One account manager for a national food- next year or two. She notes 93 percent of olds encouraged their parents to buy green. service distributor that delivers products to retailers make reusable shopping bags avail- Hispanic children lead non-Hispanic groups thousands of restaurants every day told of the able and half of those offer incentives for by a wide margin. issue faced when consumers asked the man- consumers to use them. Nearly 100 percent ager to review a draft of a new menu with the recycle cardboard and more than half recycle Foodservices Picture statement, “All of our items are completely paper, oil, fat, grease and plastic. She says Although the restaurant industry started trans-fat free.” The manager questioned how retail real-estate investments have not been becoming eco-friendly many years ago with that statement could be accurate given the overlooked when it comes to green; 80 per- moves toward organic menus and recipes naturally occurring trans fats in dairy prod- cent list green building as an important goal dependent upon local ingredients, the jump to ucts included on the menu. Once the cus- now or in the very near future. critical mass is a recent phenomenon. The tomer understood the complexity of the FMI says one highly embraced tactic in Green Restaurant Association, Boston, MA, trans-fat issue, the menu line was changed to: the greening of stores is to reuse or upgrade tripled its membership in 2007 and is on track “…items contain no industrial or artificial existing buildings instead of building new to do that again this year. Consumers, howev- trans fats.” ones. It reports that in 2006 more stores were er, are not recognizing the efforts. Foodservice faces some particular chal- retrofitted than new ones were built, and it A study by the NPD Group, Inc., Port lenges explaining its efforts related to health, claims that was a first. Washington, NY, found diners are ready for green and sustainability. Is a salad still organic This effort has not been lost on con- environmentally friendly cuisine and ready to if a few sprigs of cilantro within it are not? Is a sumers, although certain categories of con- pay for it. Consumers ranked restaurants at casserole still sustainable if one ingredient

30 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 53 traveled 1,000 miles to get to the mixing bowl? A number of foodservice operations appear not to be giving green and sustainabil- ity priority. “With all the other things we’re dealing with, sustainability is just not on the radar yet,” notes a major national restaurant chain spokesperson who chose to remain anonymous.

Certifications When it comes to certifications requested of food and commodity suppliers, both food- service operators and retailers are most focused on food-safety items, such as Good Agricultur- al Practices (GAP) and Hazard Analysis and Critical Control Point (HACCP) certifica- tions from third-party auditors. Retailers point to the growers they chose as suppliers as evidence of their continuing efforts to be ecologically responsible. “We have a number of suppliers that are very con- scious of the overall effect their growing prac- tices have on the environment, their team- mates and our consumers,” explains Bob Denomme, director of floral and produce merchandising, Bi-Lo, LLC, Mauldin, SC, which has 225 stores and is a wholly-owned subsidiary of Bi-Lo Holdings, LLC, Greenville, SC. “Growers are naturally con- servative in how they use water, pesticides, insecticides, fertilizers and supplies. All of these things cost them money, so when they can conserve, they do. We do not have a poli- cy in place that limits us to using only ven- dors that use these practices, but we do buy only from vendors with the best growing practices and these two things generally go hand in hand.” Retailers offer little evidence they are pushing down requirements to suppliers for certifications in sustainability or eco- and social friendliness. Matthew Buck, assistant director, Food Alliance, a Portland, OR-based non-profit that certifies sustainable agricultural and business practices of farms, ranches, processors and dis- tributors, says the organization has historically noted the produce sector to be a certification challenge. “One of the things we’ve learned over the years is certification can be a very effective tool to differentiate and add value to branded products. In commodity settings, such as fresh fruits and vegetables, you don’t see as much branded product so I think people strug- gle to find benefit from certification. “For some of those products, such as organic, consumer recognition may create pull for those products in absence of a pro- ducer brand or a packer brand,” he continues. “There are folks who carry both organic and Food Alliance certification and often they’re looking to us to sort of broaden the issue cov-

62 erage. We look at labor and wildlife habitat # and issues that aren’t specifically addressed by organic certification but that are important to consumers of those products. If somebody is coming from a commodity mindset and just hoping that a seal or certification is going

Reader Serv i ce to add another nickel a box, that can be a

32 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 28 fairly tough proposition.” business practices of countless companies that The report shows 68 percent of business Food Alliance has specific certification are making investments in these directions. leaders surveyed focus on CSR activities to standards for almost 50 fruits and vegetables; Not only are they seeing reductions in costs create new revenue and 54 percent believe its goals are to be a national influence on the but they are also realizing savings from their CSR activities are already giving them food system and to create value for producers improved tracking of perishables. In today’s competitive advantages. Besides being per- of all kinds of agricultural products. challenging economy, companies are reaping ceived as the “right thing to do,” these initia- Foodservice seems to be more heavily rep- the rewards associated with employing what tives also represent a sort of retooling of busi- resented; Buck says Food Alliance is seeing some call recession-proofing strategies. ness as it continues to evolve in the global greater interest from that sector, most notably In Armonk, NY-based IBM’s report, Attain- economy while simultaneously coping with as the result of activism at colleges and uni- ing Sustainable Growth Through Corporate Social higher fuel costs, changes in climate and, to versities. Its certifications have increased at Responsibility, authors George Pohle and Jeff some degree, changes in social consciousness. an annual rate of 18 percent over the past five Hittner point to a “body of evidence that cor- A hundred years ago, as Model T Fords years and in 2007, they jumped 30 percent. porations can do well by doing good.” were rolling off the first assembly lines, new Food Alliance is on track to exceed that According to the report, “Well-known com- ways of doing business were being born to increase this year. panies have already proven that they can dif- adapt to a changing economy. Today, sustain- No matter the popularity of any move- ferentiate their brands and reputations as well ability and CSR might just as aptly be named ment, there are always those who question its as their products and services if they take best business practices for a new century. validity or staying power. In this case, some responsibility for the well-being of the soci- What are retailers and foodservice compa- wonder if industry groups and the media eties and environments in which they oper- nies up to when it comes to sustainability, all aren’t simply pushing the green thing, and ate. Today, a surprising number of companies things green and CSR? Here’s a roundup they question whether green will survive already regard CSR as a platform for growth gleaned from retailer and foodservice Web beyond the fad stage. A recent New York Times and differentiation.” sites, company publications and interviews. article reported ad agencies were pulling back on environmentally themed ads because of growing consumer skepticism over environ- SUSTAINABILITY ROUNDUP mental messages. The article also indicated Time magazine’s Earth Day issue was its third- RETAILERS sons’ environmental affairs department over- lowest selling issue for 2008 as of August. ALBERTSONS, INC., Boise, ID sees daily activities with an eye toward prevent- With so much invested in rhetoric and Albertsons, a sub- ing pollution and conserving resources and money, efforts toward green, sustainability, CSR sidiary of Eden Prairie, helps stores and distribution centers to refine and other buzzwords, it’s no doubt they’re here MN-based Supervalu, their operating strategies so environmental to stay — if not in the hearts and minds of focuses considerable impacts are minimized. consumers, then certainly in the day-to-day effort on the environ- In terms of its building efforts, Albertsons mental front. Albert- recently received Leadership in Energy and 44 56 122 # # # Reader Serv i ce Reader Serv i ce Reader Serv i ce

34 PRODUCE BUSINESS • SEPTEMBER 2008 Environmental Design (LEED) certification, equipped with them today. On the recycling front, the company a designation bestowed by the U.S. Green Any new refrigeration, air conditioning expects to recycle 240,000 tons of cardboard Building Council (USGBC), Washington, and lighting systems are high-efficiency units and plastic wrap this year. Packaging is a great D.C., for its Shaw’s supermarket in Worcester, while upgrading older equipment is having a deal of scrutiny and suppliers are being guided MA. Some of the features incorporated into marked effect on energy use. Tune-ups to air toward paperboard and PET plastic, such as the store included high-efficiency refrigera- conditioning and lighting systems controls clamshells, to wrap a myriad of products. tion, monitored temperature and humidity netted a 5 percent reduction in energy use in controls, water efficiency, recycling large 350 stores. DELHAIZE GROUP, Brussels, Belgium amounts of materials and use of local materi- Costco points out that produce waste FOOD LION, LLC, Salisbury, NC als during construction. accounts for as much as 1.5 tons per week, HANNAFORD BROTHERS CO., Throughout Albertsons’ chain, there are per warehouse, so it is testing several pro- Scarborough, ME aggressive energy-conservation measures, grams to keep the produce out of landfills. Delhaize’s overarching efforts on behalf of waste reduction, recycling and moves toward One scheme involves paying compost com- sustainability are aimed at energy and reduc- sustainable packaging. The company recycles panies to pick up the waste for a rate lower ing waste. More than 400 of its Food Lion more than 635 million pounds of materials. than what the garbage companies charge. stores are Energy Star rated, and this banner

BJ’S WHOLESALE CLUB, Natick, MA By using innovative, environmentally sound, energy-efficiency pro- grams, the 175-plus-store chain claims to have reduced its energy con- sumption an average of 100 million kilowatt hours (kwh). It has made clean energy, energy efficiency, demand man- agement of energy, education and awareness the cornerstones in these efforts. In partnerships with 14 clubs in six states, BJ’s dedicated roof space where solar panels generating a total of 480 kwh are creating clean energy. The company installed energy management systems throughout its chain and is purchasing energy efficient equipment. During peak energy-load days in summer, BJ’s turns off 50 percent of the lights in clubs in New York and Connecticut. This results in a total load reduction of more than two megawatts and helps to reduce electricity price spikes and voltage reductions or blackouts. The company’s chain-wide information exchange program helps clubs to reduce or eliminate energy-wasteful operations and educates staff on energy-efficient processes.

COSTCO WHOLESALE CORP., Issaquah, WA The 537-store Costco has done sustainable things for years as ways to reduce operating costs. Costco is heavily into skylights on its buildings so the interiors can remain bright without much electrical use. Referred to as daylight harvesting, special controls turn off interior lights when there is enough light entering from outside. “We have been doing these things because they were efficient and bring cost reductions,” according to Karen Raines, director of corporate sustainability. “And now we’re finding out they’re also green.” Today, the company continues to seek

ways to lower the impact of its warehouses on 39 the environment. With nearly 400 warehous- # es in the United States consuming 1.9 billion kwh in 2007, the company has harvested sun- shine as one way to reduce its electrical con- sumption. It installed its first solar panels in

2006, and more than a dozen warehouses are Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 35 achieved a savings of 80 million kwh in 2005. Hannaford recycled 63 percent of its waste Energy Star is an international standard for in 2007 and created a unique partnership energy-efficient consumer products. where used plastic pails and pill bottles are Food Lion recently unveiled recycled into decking boards what it calls “the nation’s first gro- cery store” incorporating two GIANT EAGLE, INC., Pittsburgh, PA ozone-friendly refrigeration sys- Giant Eagle, which tems. The company expects a 60 has 156 company- percent reduction in the amount of refrigerant owned and 69 fran- needed to keep things cool and frozen. Waste chise stores, uses a avoidance, collection and recycling are ways “Fresh Approach to the company works toward more sustainable Green” through its sus- operations. For instance, Food Lion has recy- tainability hallmarks, which include energy cled more than 138,000 tons of cardboard. management and recycling initiatives. The The 150-store Han- company claims to have built the first LEED- naford chain is also an certified supermarket and Pennsylvania’s first Energy Star partner and Silver Commercial Interior LEED-certified is achieving Platinum store. Its Energy Star efforts earned it the Leadership in Energy Sustained Excellence Award from 2006 and Environmental through 2008 and it was awarded Partner of Design (LEED) status, the highest available, on the Year for 2004-2005. at least one new store in Augusta, ME. Getting The chain has been on an aggressive cam- to that designation requires installing advanced paign to replace lighting with more efficient features, such as photovoltaics, a green roof, options, install store-wide power management geothermal heating and cooling, high-efficien- equipment, install occupancy sensors and assign cy refrigeration and incorporating an advanced Energy Point Persons at every location to identi- recycling program. fy conservation opportunities and help educate Hannaford recognizes the extension of employees. sustainability to its supplier base. “We have Giant Eagle offers reusable shopping bags increased the network of local farms that to consumers, and this past year, the compa- directly supply stores rather dramatically in ny’s operations recycled more than 144 mil- the past three years and are now up to about lion pounds of materials, including paper, 220 farms,” according to Mike Norton, direc- cardboard, plastic film, rigid plastics, proteins tor of corporate communication. “It’s not and batteries. solely about sustainability since consumers On the energy generation side, the retailer have many reasons why they’re interested in purchases 17 million kwh a year of renewable that. Some of it is about freshness, some it is wind power as a member of the EPA’s Green about preserving open space and some it is a Power Partnership. group of those issues. We also do a lot with composting, and our Massachusetts stores as THE GREAT ATLANTIC AND PACIFIC a group are certified for their work in recy- TEA COMPANY, INC. (A&P), cling food wastes and composting.” Montvale, NJ Hannaford is one of six U.S. supermarket PATHMARK SUPERMARKETS, chains to have joined a voluntary Environ- Carteret, NJ mental Protection Agency (EPA) program The 447-store A&P that promotes environmentally conscious chain seeks environmen- refrigeration technology designed to protect tally friendly products and the ozone. Hannaford and Food Lion are practices throughout its among the initial 10 businesses, including operations. It has backed representatives from refrigeration manufactur- initiatives to lower lights, adjust temperatures ers and the chemical refrigerant industry, and develop comprehensive best practices to entering the GreenChill program. Participat- conserve natural resources. ing refrigeration systems and methods in new Pathmark, a 141-store and remodeled stores. chain, was acquired by “Hannaford has a long A&P in December 2007. history of being at the Since then, most of its forefront of taking care stores have switched to of our environment,” high-efficiency lighting and reported Art Aleshire, centralized energy-management systems. senior vice president of Refrigeration units throughout all stores are corporate development, monitored to avoid overstocking — a practice during a ceremony marking the launch of the that robs the units of air circulation and low-

91 GreenChill program. “I remember back to ers their efficiency. # 1995 when there was no mandate to take out As stores are updated, efforts, such as CFCs from our refrigerant systems, but we white roofing, higher-efficiency heating and thought it was the right thing to do, so we cooling systems, solar electricity generation, did it voluntarily. Ever since then, we’ve been and in some instances, micro-turbine gener- working to find different ways we can be ating systems to cut energy use and reduce

Reader Serv i ce innovative and save our environment.” demand on the grid are adopted. Besides

36 PRODUCE BUSINESS • SEPTEMBER 2008 rewarding consumers for using reusable shop- of wind power each year and 137 stores have make sure its operations are as sustainable as ping bags, the company also maintains recy- received Energy Star labels. Stores are being they can be. Through waste reduction and cling bins for plastic grocery bags, dry clean- converted to energy-efficient lighting, land- recycling, HyVee recycled more than 2 mil- ing bags and shrink-wrap. scaping is designed to minimize water use lion pounds of cardboard, 1 million pounds of and runoff and many of the components plastic, 2 million pounds of pallets, 75,000 HARRIS TEETER SUPERMARKETS, used in its buildings have a high percentage pounds of tin cans, 24,000 pounds of paper INC., Matthews, NC of recycled content. and 10,000 gallons of used oil in 2007. The174-store Harris HyVee offers reusable shopping bags and Teeter chain divides its HYVEE, Des Moines, IA plastic-bag recycling centers. Some of its store sustainability efforts As the 197-store design attributes, such as the synthetic-free into six specific areas: HyVee chain incorpo- concrete and terrazzo floors, help reduce chem- Farmers Market; store rates more green prod- ical use, Nighttime lights are automatically design; packaging; giv- ucts into its offerings, dimmed during restocking, refrigerated cases ing; Fishermans Market; behind the scenes it are upgraded to more energy-efficient models, logistics and distribu- takes further steps to low-emittance (low-E) tinted windows help tion; and recycling. While the Farmers Market concentrates on delivering certified organic fruits and vegetables and minimizing the carbon footprint of pack- aging used for those commodities, the Fisher- mans Market partners with seafood suppliers that practice sustainable fishing and sustain- able fish farming. Harris Teeter maintains an aggressive Ener- gy Star program, had 16 stores labeled as Ener- gy Star compliant in 2006 and plans on label- ing 35 more stores in 2008. It is incorporating efficient roofing systems, energy-management programs, non-ozone depleting refrigeration, water conservation at all fixtures and high-effi- ciency gas water heaters. The company recycles all the usual sus- pects plus packaging and shipping pallets, and its shopping carts are made from recy- cled plastic. The stores maintain recycling centers where consumers can dispose of paper and plastic bags. The company recycles 30,000 tons of cardboard and 1.9 million pounds of plastic each year.

H. E. BUTT GROCERY COMPANY (HEB), San Antonio, TX Focusing on ener- gy efficiency and conserving natural resources, 310-store HEB highlights the benefits to the planet and the savings to con- sumers. Its mantra is “Reduce, Reuse, Recy- cle,” and the numbers it offers appear to back that up. Through its recycling efforts, HEB reduces air pollutants by 6 million pounds each year and it saves 6.2 million gallons of water each year by reusing condensation water. By increasing the number of items packed into bags, it has reduced its plastic bag use by more than 136 million. The company claims to be the first retailer in Texas to offer E-85 fuel made from domes- tically produced corn. The fuel is 85 percent ethanol. By converting half its delivery trucks

in Houston to operate on natural gas, it says 58 it has reduced nitrous oxide emissions by 35 # tons annually. The company has simultane- ously reduced its diesel fuel use by 4.7 million gallons each year, netting a 30 percent reduc- tion in carbon dioxide emissions.

Its Austin area stores buy 27.6 million kwh Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 37 RETAILERS IN THE U.K.

Marks & Spencer Group plc (M&S), London, England Tesco plc, Cheshunt, England M&S, with 840 stores, has created sustainabili- Using a multi-faceted approach, the 2,106-store ty efforts that address climate change, reducing chain is cutting its carbon footprint in every area of waste, safeguarding natural resources, trading its business. Besides encouraging shoppers to use ethically and building a healthier nation. Its Plan, fewer bags, Tesco is rewarding consumers with called Plan A, is further divided into the Five Pillars Green Clubcard points when they take environmentally friendly action, or goals. The company makes no bones about such as recycling shopping bags, inkjet cartridges and mobile phones. how serious its efforts are since there is no Plan B. The company has reduced some packaging by up to 90 percent over By 2012, M&S wants to be carbon neutral, not sending any waste to the previous year and is importing wine in bulk to cut carbon emissions landfills, extending sustainable sourcing, improving lives of people in its associated with transport. Tesco is running trials on including carbon-foot- supply chain and helping consumers and employees to live more health- print labeling on certain items, such as potatoes, orange juice and wash- ful lifestyles. ing detergent. It is showcasing some of the 1,200 apples unique to the During the past year, M&S has reduced greenhouse-gas emissions United Kingdom and has been aggressively sourcing from local and by 55,000 metric tons (60,627 tons), supported farmers investing in regional suppliers. small-scale renewable energy production, opened three eco-stores, This year, the company hopes to achieve an 80 percent rate of recy- ordered 140 aerodynamic trailers and completed a carbon footprint for cling on its store waste. When it incorporated automatic recycling its food business. machines in 2005, it did so with the thought of increasing the amount of M&S is working to reduce bag use, recycle clothing, reduce packag- recycling its consumers were doing. ing and increase various other types of recycling. It has also increased Tesco stores are using 50 percent less energy than they did in 2000. the sales of organic food by 48 percent. By incorporating timers on lights and energy-efficient appliances and by having an energy-saving champion in every store, Tesco is on track for fur- J Sainsbury plc, London, England ther reductions. It’s also investing in farmers through its Nature’s Choice J Sainsbury plc, the parent company of program, an integrated farm management scheme. One fruit grower was 504-store Sainsbury Supermarkets Ltd., helped to plant wildflower strips between rows in the orchard thereby chain, aims to source with integrity. As of attracting beneficial insects to deal with fruit pests. July, it procured 100 percent of its pro- duce from EurepGap or equivalent Waitrose, Bracknell, England accredited sources. It has met its target of having 90 percent of its According to its 2007 CSR report, the 191- organic produce packaging recyclable, reusable or compostable, and it store Waitrose chain is on track to reduce its is on track to meet its target of a 5 percent reduction in packaging rela- greenhouse-gas emissions by 10 percent by tive to turnover by 2010. 2010. It hopes to improve the energy efficiency Sainsbury is also on track to reduce its greenhouse-gas emissions of its stores and offices by 20 percent by 2010. Overall, the company has by 25 percent by 2012 against a 2004/2005 baseline. It also intends to decreased its like-for-like carbon footprint by 10.6 percent since 2006. reduce its per-case-transported greenhouse gas emissions by 5 percent Waitrose has pioneered trials of high-efficiency engines for its fleet, by March 2009, reduce fleet and travel distance by 5 million km (3.10 tested supplier deliveries directly to shops and has saved 2 million miles of million miles), have 100 percent of its online shopping deliveries in urban driving by loading return trips. The retailer has reduced packaging con- areas delivered by electric vans by 2010, and use off-site construction sumption by 33 percent since 2000. It is recycling 23,000 metric tons methods on eight key building projects. (25,353 tons) of waste each year and offering a range of recycling oppor- The company is also on track to reduce electricity use at its depots tunities to its consumers including bag and phone recycling. by 12 percent by 2010. It has completed a water-saving initiative that Waitrose requires its British growers to adopt Linking Environment results in 210 million litres (55.47 million gallons) of savings and is on and Farming (LEAF), a certification that promotes the use of efficiency, track to reduce its landfill waste by 50 percent relative to sales against a transparency and standards. The company has more than 1,200 local 2005/2006 baseline. and regional product lines from more than 300 producers.

hold down temperature changes, landscaping ing and sustainable offerings as our consumers PVC-based material to material made from with native plants reduces the company’s water and associates look for more ways to do their recyclable polyethylene — a move that will use and reclaimed heat from compressors pre- part when it comes to the environment.” eliminate 68,000 pounds of PVC from the heats water and air. One of those ways is through recycling waste stream this year. HyVee is also testing high-efficiency tires centers, which accommodate plastic bags, dry The company has cut its energy consump- for its vehicle fleet and has added aerody- cleaning bags and plastic shrink-wrap, at the tion by more than 22 percent since 2000 and namic kits to its trucks and trailers. store. The bags are made into new products, expects to have reduced diesel fuel use by such as landscape bricks, plastic lumber and more than a million gallons over a 3-year KROGER CO., Cincinnati, OH more plastic bags. Kroger is also switching to period. The 2,274-store chain’s thinner plastic for many of its private-label It donated more than 24 million pounds approach to sustainability plastic bottles. Kroger stores and its consumers of food and other products to food banks in involves partnering “with recycled 9.1 million pounds of plastic in 2007 2007. Kroger also pursues extensive social our consumers and our and the stores recycled more than a billion efforts in areas such as food safety, vendor stan- associates to provide choices pounds of cardboard. dards, ethics, safety, sustainable products and so they can impact their Several of Kroger’s divisions compost left- animal welfare. local and global environ- over produce that can’t be sold. Part of ment in a meaningful way,” explains Lynn Kroger’s recycling efforts extend to its out- MEIJER, INC., Marmer, group vice president of corporate door advertising. It maintains 829,000 square Grand Rapids, MI affairs. “We continue to expand our green liv- feet of billboards and has switched them from “A year ago August, we opened our first

38 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 25 LEED-certified store,” says Frank J. Guglielmi, “For several years, Publix has worked with director of public relations, for the 182-store corrugated manufacturers to test products to chain. “It’s in Alan Park, MI, and was built in replace wax cardboard boxes,” adds Brous. a development that was a former landfill site “Today, we work with our suppliers to encour- used by Ford Motor Company. We’ll open age them to use shipping products and con- nine new stores in 2008 and five of them are tainers that are more environmentally friend- replacing existing Meijer stores, so we’re net- ly and recyclable.” ting out at four new stores this year.” In two With the establishment of its Get Into a cases, the company recycled 95 percent of the Green Routine program, Publix has brought the old, nearby stores that were being replaced. concept of acting in “green ways” to the fore- Meijer has also part- front. The company credits the program with nered with The Nature helping to save 643 million kwh since its Conservancy, Arling- inception in 2001. ton, VA, to offer a wide Other company initiatives include energy- selection of non-inva- efficient refrigeration and air-conditioning sive plants in its garden centers. “That has designs and equipment, incorporating halide been a very successful program for us since we and LED lighting into stores, integrating solar actually more than doubled the number of electricity-producing technologies into its non-invasive plants we had available for sale buildings and policies for types of product this year,” Guglielmi says. “We’re in five states, packaging. By becoming more efficient with so the plants differ from location to location.” routing and loading, Publix has decreased its Meijer has been aggressive about includ- truck travel by 28,000 miles each week. ing as much locally produced product as pos- sible and received an award from the state of Michigan for its leading role in supporting RALEY’S SUPERMARKETS, local growers. Meijer’s organic line has more West Sacramento, CA than 200 items. The 130-store Raley’s Guglielmi tells of a wildly successful Supermarkets chain reusable bag program: consumers buy poly- sources local produce as propylene bags at cost from the store and much as possible, then reuse them over and over again. “We explains Nicole Town- launched the reusable bags last October and send, spokeswoman. it took off like wildfire,” he says. “At its peak, “We are fortunate to be we were selling 40,000 of them each week, located around some spectacular growing and to date we’ve sold over 800,000. People regions and we work with local farmers con- just love them. You see them carrying books stantly, often featuring them and their prod- in them and all kinds of things.” ucts in our weekly ads and magazine. “In some cases, we have direct delivery from local growers to local stores,” she con- PUBLIX SUPER MARKETS, INC., tinues. “For many years, we’ve also sent our Lakeland, FL produce waste to our distribution center, The 941-store Publix where it is collected and taken to farms as chain publishes exten- livestock feed. We recycle cardboard and sively on its sustainabil- waxed cardboard, which many companies do ity efforts that range not do because it takes a different type of from helping people to think green to smart recycling process. Since we introduced organ- product sourcing. The company looks for ic produce in the mid-’80s, we’ve offered a locally produced products first and then wide variety that can be well over 100 items expands outward if products that meet its in any given period.” standards, price and quality are not available. The company installs skylights, induction “At Publix, we’re always searching for great lighting that lowers power use by 20 percent, value in product for our consumers,” explains light-emitting diode (LED) lights, solar power Maria Brous, the company’s director of media stations, high-efficiency refrigeration systems and communications. “We secure a variety of and stratified air systems that focus heating produce year-round. While purchasing local and cooling on the occupancy zone of the means something different to each person store or the first eight feet above the sales you ask, we procure product within our mar- floor. It is also refining air doors so there is lit- ket areas whenever available. If the product is tle to no loss of heated or cooled air through not available within our 5-state geographic open doorways at the stores’ entrances. It has area, we look across the United States. If installed stained concrete and porcelain tile product is not available in the United States, floors to eliminate the 10-year cycle of remov- we look abroad.” ing vinyl tile floors and sending them to land-

112 Reducing, reusing and recycling are at the fills. It has also installed night blankets on # heart of its efforts. Building more energy-effi- refrigerators to limit energy loss during night- cient stores, reducing energy consumption at time hours. existing stores, minimizing water use, reduc- ing fleet fuel use, reusing materials and items ROUNDY’S SUPERMARKETS, INC., at all levels and recycling at every opportunity Milwaukee, WI

Reader Serv i ce are built into the company’s operations. The 152-store Roundy’s takes particular

40 PRODUCE BUSINESS • SEPTEMBER 2008 pride in its efforts to eliminate waste, especial- growers and helps the environment. and includes landscaping that provides habi- ly in the perishables area, by paying careful Roundy’s addresses the proliferation of tat for wildlife and screens the facility. attention to procurement. “One thing we do packaging by ordering commodities in bins to prevent produce waste is to have very spe- even though it may not necessarily use the bins SAFEWAY, INC., Pleasanton, CA cific product specifications that we have writ- in floor displays. It also recycles packaging and The 1,734-store ten up and share with our suppliers,” reports cardboard as well as packaging components Safeway uses Steve Kinishi, vice president of produce. that many may overlook as recyclables, e.g., wind to power all “We deal with corner boards from pallets and junk pallets. its U.S. fuel sta- suppliers who are According to Vivian King, director of public tions, its headquarters in northern California reputable, so the affairs, Roundy’s careful attention to waste and its stores in San Francisco, CA, and likelihood of get- reduction does not translate into a reduction in Boulder, CO. It converted its truck fleet to ting un-saleable charitable food giving. Besides periodic food biodiesel and currently harnesses the advan- product on the inbound side of our distribu- drives, the company’s foundation delivers 7,300 tages of efficient lighting and refrigeration tion centers is reduced,” he continues. “We pounds of food to each of 50 food pantries and recycles 500,000 tons of materials each also have made a lot of progress in reducing twice a year. Through a partnership with Altera year. Safeway saves more than 175 million kwh waste by focusing on ordering what the con- Coffee, Milwaukee, WI, a dollar from every each year through its energy-efficiency efforts sumer needs. As we understand demand bet- pound of coffee sold goes to fight hunger and, by using the EPA’s SmartWay Fleet ter, we can order product to meet that through Chicago, IL-based America’s Second Logistics Environmental and Energy Tracking demand. When you do that, it reduces waste. Harvest branches throughout Roundy’s geo- Performance Model, it is saving more than Shrink reduction, environmental friendliness graphic area of operations. 6.5 million gallons of diesel fuel each year. and green efforts don’t necessarily have to exist The company aggressively helps con- Besides conducting business in environ- as separate goals. They all work together as sumers recycle plastic, offers reusable shop- mentally responsible ways, Safeway also mini- good business practices.” ping bags and reduces transportation waste mizes the environmental liabilities associated Roundy’s continually refines ordering and by piggybacking trailers on trains and loading with property acquisition and disposal and production practices so it is more effective in backhaul miles on local runs. Its new 1.1-mil- helps its consumers choose sound environ- managing inventory in both the stores and the lion-square-foot distribution center was rec- mental practices. The company uses a 3- distribution centers. Through more effective ognized for its green design features under phase approach to identifying and addressing ordering and efforts at turning the product in the Wisconsin Department of Natural the potential environmental impacts of its the distribution centers, it keeps waste to a Resources (WDNR), Madison, WI, Green properties. Through public service announce- minimum. It has also increased its organic Tier Program. Roundy’s is a Tier 1 participant ments, Safeway highlights what people can do offerings at a clip exceeding the national aver- in Green Tier. The distribution center maxi- to manage energy more efficiently and tells its age, not only because its consumers are mizes the use of daylight, uses only sand for story about participation in programs that demanding it but also because it helps local ice control on its parking lots and driveways help it reduce its energy use. 45 # Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 41 SAM’S CLUB, Bentonville, AR company to minimize its environmental foot- mental footprint. Claiming its goal is to print. Through its participation in the EPA’s In 2006, Target recycled 911 have its stores run by 100 GreenChill Partnership program, it is using million pounds of cardboard, percent renewable energy, only non-depleting refrigerants in new con- 1.4 million pounds of elec- create zero waste and sell struction and remodels, is reducing its emis- tronics, 2.1 million pounds of products that sustain sions of ozone-depleting and greenhouse-gas plastic, 153,000 pounds of resources and the environ- emissions each year and is involved in a gov- metal and either recycled or ment, the 718-store Sam’s ernment/industry research program to assess composted 6.2 million Club, a subsidiary of Wal- the performance of new technologies. pounds of food waste. The Mart Stores, Inc., Bentonville, AR, outlines Supervalu recycles 271 thousand tons of company also recycled or refurbished 47,600 specific steps it’s taking to get there. By cardboard, 4,000 tons of plastic and 429 mil- shopping carts. installing auxiliary power supplies on its lion beverage containers each year. Produce is By incorporating energy-efficient and trucks, Sam’s hopes to eliminate 100,000 met- recycled at various stores through composting motion-sensor lighting, switching from exterior ric tons of greenhouse-gas emissions and or conversion to animal food. neon signs to LED and adding solar electricity reduce its diesel fuel consumption by 10 mil- From 2000 to 2007, the company invested generation capabilities, Target reduced its over- lion gallons. It is recycling shrink-wrap, plas- more than $95 million in capital energy pro- all energy consumption. As a voluntary partici- tic, aluminum and cardboard, and has devel- jects that save more than 340 million kwh of pant in the EPA’s Climate Leaders program, the oped a packaging scorecard to evaluate pack- energy each year. It is converting store signs company tracks and reports its annual green- aging so it can continuously improve it. to LED and switching to LED in frozen-food house gas emissions to the agency. Sam’s has an electronic recycling and cases, medium temperature cases, backroom All new stores have specifications for low trade-in program, is offering more choices in lighting, dock lighting, spot lighting and Volatile Organic Compounds (VOC) carpet, organic food and apparel and is selling only walk-in freezer and cooler boxes. The compa- adhesives, sealants and paint. The company fish certified through the Marine Stewardship ny is also incorporating solar electric genera- uses innovative site designs to minimize Council (MSC), Seattle, WA, and the Aqua- tion in some stores and trying out green roofs runoff and in 2006, more than a third of its culture Certification Council, Inc. (ACC), on select facilities. new store projects involved rehabilitating Kirkland, WA. older structures. Its vendor guidelines help TARGET CORP., Minneapolis, MN encourage the use of more environmentally SUPERVALU, INC., Eden Prairie, MN Target is a 1,500-plus-store chain, includ- friendly packaging. Supervalu, Inc., ing more than 175 SuperTarget stores that add which operates 2,505 an upscale grocery shopping experience. WAL-MART STORES, INC., stores, organized a Stores throughout the chain incorporate Bentonville, AR ValuEarth Council LEED, waste reduction, energy efficiency and Wal-Mart Stores, Inc. is comprised of 915 Wal- that recommends and oversees ways for the innovative thinking to minimize its environ- Mart stores, 2,572 Supercenters and 143 Neigh- 37 2 # # Reader Serv i ce Reader Serv i ce

42 PRODUCE BUSINESS • SEPTEMBER 2008 borhood Markets. The chain works toward its WEGMANS FOOD MARKETS, INC., stores use high-efficiency lighting and the goals of being 100 percent supplied by renew- Rochester, NY company switched to natural fiber boxes for able energy, not creating any waste and offering “It’s fair to say its fish-fry containers. products that sustain the natural resources and that Wegmans In 2007, Wegmans donated more than 16 the environment. The company employs sus- efforts on sustain- million pounds of food to food banks and tainable value networks that include some of ability are mea- pantries near its stores. its own employees along with those from sup- sured and cautious,” explains Mary Ellen pliers and input from academia, government Burris, senior vice president of consumer Whole Foods Market, Austin, TX and environmental groups. affairs for the 71-store chain. “Maybe too Highlighting organics as Some little- much so, but we worry about exploitation of the place where the green known and consumer interest in things green. We try to movement began, the 270- unique aspects of work on projects that really make a difference store chain stays on top of Wal-Mart’s and can be sustained. Our primary objectives sustainable efforts. Naming efforts include the Acres for America Program, are to reduce energy demand [in refrigera- areas such as healthy soil, in which 395,000 acres of land have been per- tion, lighting, transportation and packaging], biodiversity, natural prevention and safeguard- manently preserved, offsetting by three times and increase our recycling rate [which is cur- ing water quality, Whole Foods drives home the amount of land used by all Wal-Mart rently 62 percent].” the point that it is human interaction in the stores. During 2006 and 2007, the company The company’s sustainability team is busy world that tears down or builds up a sustain- also developed four brownfield sites or aban- exploring new ways for the company to be able environment. doned or under-used industrial and commer- more sustainable. Its organic milk is pro- The company highlights reducing, reusing cial facilities. duced by small, local family farms and the and recycling as additional attributes to its The company achieved a 15 percent savings in fuel use for transportation efforts. By using paperless ordering systems, increase in building efficiency between 2006 amounts to 10,000 gallons per year. Wegman’s carpooling, using power monitors to reduce and 2007, opened two high-efficiency proto- puts two trailers on one truck, when possible, energy consumption and operating a com- types and made commitments for 22 on-site a practice that saved 200,000 gallons of fuel posting program, Whole Foods reduces what solar power installations that will produce 17 in 2007. it consumes. The company reuses assorted million kwh each year. Additionally, Wal-Mart Wegmans recycled 3 million pounds of materials and recycles batteries, paper, glass, had a 15 percent gain in truck fleet efficiency plastic bags and wrapping material in 2007, plastics and even cell phones. and recycled 124,000 pounds of electronic 81 million pounds of cardboard and office After making the largest renewable-ener- waste. All farmed shrimp factories are certified paper and, by reducing the weight of its pre- gy-credit purchase in the history of the conti- by ACC and Wal-Mart is going for full certifi- pared packaged salad container by 25 per- nent, Whole Foods can claim all its stores are cation of all wild fish vendors with the MCS cent, it is saving 12,600 pounds of plastic and supplied by 100 percent renewable energy. by 2010. 1,100 gallons of fuel. All new and remodeled Besides achieving LEED certifications for its 33 52 # # Reader Serv i ce Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 43 stores, the company takes times to select computer; using occupancy sensors for light- such as tankless water heaters are part of the environmentally friendly materials, such as ing when possible; using only compact flores- building package ultimately adding to the medium-density fiberboard, natural linoleum, cent (CFL) bulbs in the front of the house energy savings. recycled steel and Bonn, Germany-based For- and T-8 florescent bulbs in the back of the The company has rolled out a new Duke est Stewardship Council (FSC)-certified house; enacting a scheduled maintenance Flexible Batch Broiler from Duke Manufac- wood. program on refrigeration equipment to keep turing Co., St. Louis. MO. It cycles energy on up the efficiency of the units, gaskets and and off instead of constantly burning fuel. curtains; using chemical sanitizing in dish- Besides keeping kitchens cooler and reducing washers to lower the temperature needed gas consumption by 52 percent and electricity FOODSERVICE from the water heater; maintaining all faucets use by 90 percent, the new broilers don’t send APPLEBEE’S INTERNATIONAL, INC., to make sure they are fixed when broken and as much waste up the vent stack and they Lenexa, KA installing low-flow nozzles on all sinks to cut release less heat, reducing restaurant cooling The 1,965-restau- back on water use; installing low-flow toilets and venting costs. rant Applebee’s high- to offset water use; and recycling all cooking lights the efforts of oil for uses such as biodiesel fuel. MCDONALD’S CORP., Oak Brook, IL one store in the Sili- Applebee’s is also working with Sustain- Like all fast-food opera- cone Valley as repre- able Silicon Valley (SSV), a San Jose, CA- tions, the 31,000-restau- sentative of the based collaboration of businesses, govern- rant McDonald’s Corp. actions underway in its green and sustainable ments and other organizations, to put togeth- uses a great deal of pack- initiatives. The Silicon Valley restaurant er a guide book on showing other restaurants ® aging, so to reduce the teamed up with the Redwood City, CA-based how to become green and what resources impact on the environ- Bay Area Green Business Program to become they have to do so. ment, 83 percent of that packaging is paper certified green, a process that took three or some other wood-fiber material. It months to come to fruition, even though it BURGER KING, Miami, FL redesigned its North American fry boxes and was already doing at least 70 percent of the One environmental hall- reduced the packaging weight by 1,100 tons practices required for certification.. mark of the 11,300-restau- per year and is phasing out perfluorooctanoic Some of the practices necessary to qualify rant Burger King chain is its acid-based packaging in favor. for certification include converting its menu Return on Capital, or ROC, McDonald’s is focusing on reusing and box in the front to announce its sustainabili- ® effort. This program recycling, managing electrical energy and ty efforts; recycling paper, cardboard, cans, describes new high-efficien- effective water management. It is purchasing and bottles; composting food waste; discour- cy restaurants that are small- goods made from recycled materials. On the aging printing of e-mails; using recycled paper er and require less heating and cooling than real-estate side, new restaurants are designed in the office; using recycled toner for the the larger restaurants. Specialized equipment to reduce air conditioning needs and all 57 126 # # Reader Serv i ce Reader Serv i ce

44 PRODUCE BUSINESS • SEPTEMBER 2008 equipment is evaluated for energy efficiency. sustainability banner. WENDY’S INTERNATIONAL, Through an informational program, the Dublin, OH company keeps managers informed of better A two-time recipient ways to manage electricity use and it has SUBWAY, Milford, CT of the 100 Best Corpo- established a Global Water Team that sets In rolling out its Eco- rate Citizens award by standards for water quality and conservation Stores, Subway, which Business Ethics magazine, measures. has more than 29,546 Wendy’s, which has McDonald’s also works with its suppliers franchised units, is 6,700 restaurants and is a to shape and impact environmental issues. It including high-effi- subsidiary of Triarc Com- developed an environmental scorecard for ciency heating, ventilation and air-condition- panies, Inc., Atlanta, GA, supplier performance, shifted whitefish pur- ing (HVAC) systems, remote-condensing has many initiatives chases representing more than 18,000 metric units for refrigeration and ice making, con- extending throughout its supply chain. It tons away from unsustainable sources, and trols for high efficiency lighting, LED lighting, gives preference to suppliers who share its has been recognized by the EPA for leader- low-flow water fixtures and materials from dedication to preserving the environment ship in its Refrigerants Naturally coalition. sustainable sources. and advancing the long-term stability of the Subway also focuses a considerable agricultural systems. PIZZA HUT, Addison, TX amount of attention on using products Wendy’s lettuce growers have to have fully Pizza Hut, the 34,000- derived from recyclable materials and recy- implemented and documented GAP and restaurant chain that is a cling in consumer areas. HACCP programs, must verify that the water subsidiary of Yum! Brands, It is reviewing materials used in disposable and soils where crops are grown meet estab- Louisville, KY, has a code of gloves, product packaging and the locations lished governmental standards for heavy conduct that directs its of product distribution centers. Relocating metal and pesticide residues, and must report activities around the world. several of those centers resulted in the saving on the suitability of products for recycling, Largely focused on social of more than 1.5 million gallons of gas each incineration and land disposal along with responsibility, it directs that year and the elimination of 10,491 truck their efforts related to minimizing waste, all operations encourage long-lasting social routes. encouraging recycling and removing environ- well-being in communities. Competitive Its switch from polystyrene cups to poly- mentally unsuitable substances from the wages and benefits, complying with laws, and propylene cups resulted in an annual resin sav- waste stream. enforcing a code of conduct for suppliers are ings of 610,000 pounds and saved the equiva- Bags are made with up to 40 percent recy- all high on the list. lent of 13,000 barrels of oil. The company cled material and printed with water-based Supplier diversity, animal welfare and moved to napkins made of 100 percent recy- inks. Hot sandwiches are served in bio-degrad- community outreach are just a few of the cled materials and has reduced its sandwich able wraps and shortening is recycled into cos- company’s other efforts outlined under its wrap wax. metics and supplemental animal feeds. pb 129 120 123 # # # Reader Serv i ce Reader Serv i ce Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 45 Fall Merchandising Ideas Go bold this fall with bright tips for building profits.

BY CAROL M. BAREUTHER, RD

Capitalize on the upcoming season with a series of strategi- established event in the produce industry, explains cally planned back-to-back fall produce promotions. Simcha Weinstein, promotions director, Albert’s Organics, Inc., based in Bridgeport, NJ. “Since its “The fall is one of the most exciting and most inception in 1992, the celebration has steadily profitable seasons of the year for the produce depart- grown and picked up awareness among retailers. ment,” notes Dave Brossart, general manager for Particularly in the past five years, it seems to have produce and floral, Jungle Jim’s International Mar- taken off, not just among natural-foods retailers but ket, Inc., a single specialty store in Fairfield, OH. also among mass-market retailers who take this as an opportunity to let shoppers know they are a des- tination point for organic foods and as a means to ORGANIC HARVEST MONTH introduce new organic products to their shoppers.” September Combine Organic Harvest Month with back-to- Organic Harvest Month is rapidly becoming an school and healthful snacking themes, recom- mends Tonya Antle, vice president of organic sales, Earthbound Farm, San Juan Bautista, CA. “All snack items, such as mini carrots, carrot dippers, sliced apples, dried fruit and grab-and-go salads, are plen- tiful this time of year. Of course, it’s also generally a great time for apples, pears and organic salads with dried cranberries and walnuts.” Weinstein, “Creating more of a market-style look as opposed to a typical retail look can be a very effec- tive merchandising strategy. For example, if you’re promoting pears or apples, rather than having them on display in their usual position on the rack, try dis- playing them in large quantities in a bin.” Feature locally raised organic food and celebrate the local growers who contribute to this bounty, he adds. “Offer some type of discount on all organic fresh produce in the store. It doesn’t have to be a huge discount. For instance, it may simply be 7 per- cent or the equivalent of eliminating sales tax. Often an across-the-board discount encourages

46 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 35 shoppers to check out the entire organic selection and not just the few items being featured. Finally, perhaps the best in-store Schnuck Markets promotion is to sample organic food every day throughout the month. Nothing works better than actually getting this food into chnuck Markets, the mouths of consumers.” Inc., a 101-store Holly Givens, public affairs advisor, Organ- S supermarket chain ic Trade Association (OTA), Greenfield, MA, headquartered in St. Louis, recommends “tying Organic Harvest Month MO, will celebrate its 7th in with other fall events in your region. Con- annual fall health and fit- sider grouping products by meal and offering ness promotion, Septem- them with menus and recipes. For example, ber is Fruits & Veggies — Photo courtesy of Schnuck Markets feature organic harvest breakfasts or easy More Matters Month, reports Mike O’Brien, vice president of produce and immediate past brown-bag options for school or work.” chairman of the board of trustees of the Produce for Better Health Foundation (PBH), Wilm- Retailers can find Organic Harvest ington, DE. “September is a good time for a promotion such as this because it’s back-to- Month fact sheets for adults and coloring school, back-to-basics time.” pages for kids on OTA’s Web site. Schnuck’s promotion includes weekly ads featuring sponsors’ produce items with a health message from Jackie Joyner-Kersee, an Olympic gold medalist who’s been dubbed the First Lady of Track & Field. One of the ads from the 2007 promotion featured Wat- HISPANIC HERITAGE sonville, CA-based Montery Mushroom’s baby bella mushrooms along with Joyner-Kersee’s MONTH tips about the important nutrients provided by fruits and vegetables. Sept. 15-Oct. 15 “We also have a health-and-fitness brochure aimed at elementary-school kids,” notes This dedicated month celebrates the cul- O’Brien. “It’s a fun and educational brochure we offer to parents and teachers.” ture and traditions of Spain, Mexico and the The Fruits & Veggies — More Matters promotion ends in early October with a 5-mile fun Spanish-speaking nations of Central Ameri- run at Six Flags over St. Louis that Joyner-Kersee will attend. “The program has been very ca, South America and the Caribbean, successful,” adds O’Brien. “We have provided educational materials for young people and, explains Robert Schueller, director of public hopefully, have encouraged them to eat more fruits and vegetables. Plus, the items featured relations for Melissa’s/World Variety Pro- in our ads around this promotion have seen a lift in sales.” pb duce, Inc., Los Angeles, CA. “Many retailers, 63 1 # # Reader Serv i ce Reader Serv i ce

48 PRODUCE BUSINESS • SEPTEMBER 2008 autumn. “This transition is reflected in the has switched to its fall theme.” produce department with the fall re-set. The Northwest apple crop is projected to Metropolitan Retailers can use the season’s entire bounty be one week behind schedule this year, but Market — squash, gourds, apples, pears and more — it’s forecasted to be in full production by the to really make this a ‘wow’ for consumers,” beginning of September, reports Roger Pep- his fall, ready-to-eat pears will notes Karen Caplan, president, Frieda’s, perl, marketing director, Stemilt Growers, take center stage at Metropolitan Inc., Los Alamitos, CA. Inc., Wenatchee, WA. “Cold [temperatures] T Market, a 6-store chain based in Oxford agrees, adding, “When this re-set earlier in the year affected the bloom. That Seattle, WA. “Our Pear Affair is similar to happens depends on the region of the coun- means smaller sizing on this year’s apples, our Peach-O-Rama in the summer,” try. For example, in the Midwest and further or 88s rather than 80s, 80s rather than 72s, explains Ed Laster, produce specialist. north, it’s just after Labor Day. It takes for example.” “We work with local growers willing to longer to happen for stores further south, “In a typical fall, we’ll see Gala promo- pre-condition fruit and pack it in single- such as in Georgia or Florida. But by the first tions in September, Golden or Red Delicious layer boxes that go directly on display of October, usually every store in the nation in October, Fujis in November and Granny in store. This prevents bruising in ship- ment and excessive handling at the store level, given the fruit is soft, ripe and juicy.” The promotion runs over four months. Bartletts are showcased in October, red- skinned pears in November, Comice in December and Bosc and D’Anjou in Janu- ary. “We’ll feature the pear of the month for three weeks and then take a 1-week break before introducing the next month's variety,” he adds. Signage letting consumers know what to expect, passive and active sam- pling, recipes, informational ads with usage tips, such as pear and wine pair- ings, and chef-made recipes are offered at an in-store kiosk. “This will be our fourth annual Pear Affair and consumers start asking us in late summer when it will begin,” laster concludes pb however, zero their promotions in on Sept. 16, which is Mexican Independence Day.” According to the U.S. Census Bureau, the Hispanic population numbered 44.3 million as of July 1, 2006, with projected growth to 102.6 million by 2050. Hispanics are the nation’s largest minority — definitely a group with sizable purchasing power. “Many types of chilies as well as Roma tomatoes, white onions, cilantro, garlic, tomatillo, cucumbers, limes and mangos are available and excellent to promote during this time,” according to LeeAnne Oxford, marketing director, L&M Companies, Inc., Raleigh, NC. “Create colorful displays,” advises Melis- sa’s Schueller. “Use your Cinco de Mayo dec- orations and go crazy with color and variety. Chile strings and wreaths, piñatas and steamers will add to this festive promotion.” 90 #

FALL HARVEST September-November There’s a sense of drama in the fall when

hot summer days shift to the cool of Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 49 Smiths in December,” Stemilt Pepperl con- tinues. “Category research we’ve conducted Jungle Jim’s shows that if you advertise an apple of the month, you’ll get both item lift and category International Market veritable cornucopia awaits consumers in the weeks leading up to Thanksgiving at Jungle Jim’s International Market, a single specialty store in Fairfield, OH. One eye- A catching display is pumpkins. “I’ll bring them in by the semi-load,” reports Dave Brossart, general manager of produce and floral. "We set them up out in the garden center in at least four displays that are each 40-foot in size. Consumers like to come and take their picture or their kid’s picture, sitting on a pumpkin. It’s an annual ritual with many families.” “If you advertise Jungle Jim’s 1-acre produce department is full of fall produce and fixings for holiday an apple of the meals. “Apples are another big item,” notes Brossart. “We bring in more than 30 varieties from Ohio, Michigan, Indiana and Kentucky. These apples are picked and shipped right month, you’ll get away — unpolished and as fresh as you can get. This year, the fuel savings of these region- both item lift and ally grown apples are also a major plus.” Potatoes, sweet potatoes, winter squash, gourds, fresh and dried cranberries, Indian corn, category lift.” baby pumpkins and painted pumpkins are just a few of the items set in huge displays. “Cus- tomer service is really big for us,” explains Brossart. “We’ll have 10 to 15 produce staff on — Roger Pepperl the floor at any time, ready to help consumers pick something, explain what it is and offer Stemilt Growers, Inc. recipe ideas. People come to our store because they want to try something new and excit- ing, and we really enjoy helping them out.” pb

On the East Coast, the New York state we grow just about all the varieties that apple crop is projected to be similar to this Washington does except, for example, past year or about 30 million bushels, notes Granny Smith, Jazz and Pink Lady. Howev- lift. Of course, there’s a lot of overlap of Jim Allen, president, New York Apple Asso- er, unlike Washington, we’re within a day’s varieties in the fall, making it an ideal time ciation (NYAA), Fishers, NY. “Our No. 1 reach of three-fourths of the U.S. population, to promote multiple varieties.” apple is McIntosh followed by Empire, but which gives us a fuel-savings advantage.”

HOLTHOUSE FARMS OF OHIO, INC. Growers and Shippers

Fall Shipments Hard Squash waxed Gourds Waxed Mini Pumpkins waxed Pie Pumpkins waxed Indian Corn

Sales: Kirk Holthouse Frank Bishop Transportation: Kevin Holthouse 59 61 # # Ph: 419-935-0151 • Fax: 419-933-2178 Willard, Ohio [email protected] Reader Serv i ce Reader Serv i ce

50 PRODUCE BUSINESS • SEPTEMBER 2008 This year, Stemilt updated its POS sign both transitional acreage and new acreage She suggests “displaying a number of cards. “Just about every apple is described as coming on.” pear varieties at one time.” sweet and crispy,” says Stemilt’s Pepperl. The Northwest pear crop is expected to “We recommend retailers offer con- “We’ve taken time to develop descriptions be about two weeks late. However, ship- sumers pears with varying degrees of with deeper meanings to educate and entice ments of early-season pears, such as Bartletts ripeness,” notes Neil Galone, vice president consumers to try varieties they haven’t and Star Crimson, will be rolling by Septem- of marketing, Diamond Fruit Growers, Inc., before. This is important because many vari- ber, states Cristie Mather, communications Hood River, OR. “This provides the opportu- eties, such as Braeburn, Gala and Fuji, all manager for the Pear Bureau Northwest nity to buy pears for today and tomorrow. look similar.” (PBN), Milwaukie, OR. “What differentiates Display pears with apples. Consumers buy Tote bags are important vehicles for fall the early pears from winter varieties, such as both and showcasing product side by side apple promotions, Allen points out. “They Anjou, Bosc and Comice, is that the Bartletts makes for eye-catching color breaks.” give a farm-stand look. Our 5-pound totes and Star Crimson show a color change when Unlike the increasing mainstreaming of are especially popular.” ripe. We call these pears transformers. Kids organic apples, organic pears appear to Bulk apples are still the majority of sales get the concept immediately.” remain a niche market. “Some farmers have nationwide, reminds Pepperl. “It’s around 80 percent bulk to 20 percent bagged on the East Coast. The Midwest is heavy toward bags, maybe 50-50 bulk and bagged, but in the West, it is 90 percent bulk to maybe 10 percent bagged.” Organic apple supplies will surge in 2009, predicts Pepperl. “This will come from Wegmans Food Markets

efore a football game, a look into grocery carts in the checkout at B Wegmans Food Markets, Inc., a 70-store chain based in Rochester, NY, reveals that tailgating fans are now chowing down on salads and antipasti as well as proteins. “People have been partying before games for a long time, but if you look closely, you’ll see some fans are getting a lot more creative in what they cook and serve,” says Amanda Roberts, cater- ing manager. Pre-game shopping patterns divide fans into two categories. One group dashes into the store on the way to the stadium to pick up items, such as subs, chips, soda and cookies, all packed into a soft-sided cooler to keep everything fresh for halftime. Then there are the tail- gating hosts and hostesses who shop a day or two before the big game and buy anything and everything for the grill. “Our consumers are making some fantastic food, such as grilled pork ten- derloin, barbecue ribs, salmon, sword- fish, veggies or even fruit,” she adds. Whether fans chow down at the sta- dium or in front of the TV, the food 49

never stops. “Our pre-prepared trays # practically fly out of the store before a game,” Roberts notes. “The wheat-wrap trays, fruit and veggie trays and shrimp platters are especially popular.” pb Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 51 found the increase in price they can get for organic pears isn’t enough to offset the increased cost of production,” Galone adds. National Apple Month HALLOWEEN Oct. 31 reativity, cross-merchandising and copious quantities of apples boost sales for retail- Halloween is a major decorating holiday, ers participating in National Apple Month (NAM), the annual contest sponsored by states John Carl, sales manager, Dan C the Vienna, VA-based U.S. Apple Association (USAA). It jump-starts the domestic Schantz Farm & Greenhouse, LLC, Zions- apple industry's marketing season and runs from September through November. ville, PA. “I think, with the economy and gas This past year, the Big M store in Boonville, NY, one of 71 Big M stores owned by P&C prices the way they are, people will be stay- Foods, Inc., a subsidiary of Syracuse, NY-based Penn Traffic Company, featured 15 different ing closer to home and more likely to deco- varieties of fresh apples that accounted for more than 160 cases of apples sold during the rate at home. This should translate into store’s 14-day store promotion. Entry coordinator Nancy Latvis created a tribute to the fall good sales of items such as pumpkins.” apple harvest that included locally grown apples and tied in complementary products, such There’s been a big push for painted as caramels and peanuts. The result, she says, was double-digit apple sales. pumpkins in the past few years, Carl adds. At a West Des Moines, IA-based HyVee store in Marshalltown, IA, entry coordinator John “Our best-sellers are the brightly painted Sherman found success using a large display with the theme, Apples, Apples, Apples.The ones that appeal to young kids in the 6-to- display occupied the entire entrance of the produce department and featured Honeycrisp 12-year-old range. Some retailers like these apples along with 21 other varieties of fresh apples sold loose, in 3-pound bags or in pre- while others go with pumpkins painted as filled totes. Sherman also included processed apple products, peanuts and peanut butter, witches and goblins. Still others go for along with freshly baked apple pies and breads from the store bakery in the display. pumpkins decorated as community profes- Nutrition is such an important message for apples that stores compete for a special NAM sionals such as doctors, policeman and con- Best Health-Oriented Display prize. This past year, Shady Maple Farm Market, a single store struction workers.” in East Earl, PA, won by featuring nutritional messages throughout the apple display that Dan Schantz also grows Atlantic Giant included facts for consumers, such as apples are high in pectin, which is good for digestion; pumpkins. “This past year, they were as big high in antioxidants, which are good for the immune system; and rich in vitamins and nutri- as 800 pounds,” states Carl. “Most retailers ents. The display featured 17 different varieties of fresh apples and several tie-in items. The usually look for big pumpkins in the 100- to store experienced sales lifts of 11 percent for apple sales and up to a 27 percent increase 200- pound range. They’ll set these up for on tie-in ingredients. “It truly was a successful promotional event for our store and our sup- decoration in the department and maybe tie pliers,” reports entry coordinator Wayne Sauder. pb it to an opportunity for consumers to take their photo in front or a guess-the-weight contest. Either way, it generates a good This year, PBN will again partner with ing coupons for pears or other promotions,” amount of excitement at the store level.” Radio Disney for a Halloween Pear-Ade pro- explains Mather. “It’s all about attracting new Ornamental gourds, hard squash and motion. Themed around pear-friendly safety consumers to the store.” decorative Indian corn are also popular this tips, such as ‘Always walk in pears,’ the pro- time of year, according to Melissa’s motion will take place at three community Schueller. “Halloween doesn’t have to be all events within each of 20 markets nationwide THANKSGIVING about candy. Retailers can set up a display in October. “Participating retailers in each Nov. 27 of small bags of dried fruits and nuts to pro- market display their banner at each commu- Thanksgiving is one of the largest food vide healthful options and increased sales nity event, their tag line is played on Radio holidays of the year, notes Schueller. “There opportunities.” Disney and they can tie in in-store by offer- are many traditional foods for Thanksgiving, including squash, potatoes, shallots, garlic, herbs, spices, grains, cranberries, hazelnuts, pine nuts, French beans, baby carrots and fresh herbs such as basil, sage and rosemary.” Stocking and promoting product in the run-up to Thanksgiving “should start right after Halloween,” states Frieda’s Caplan. “Many consumers like to see what’s in-store ahead of time to get ideas about what to serve for their big Thanksgiving meal. In other words, let them know what ingredi- ents might be new and different or offer a new twist on the traditional.” One newer item “is the sweet potato Fin- gerling,” reports George Wooten, owner and president, Wayne E. Bailey Produce Compa- ny, Chadbourn, NC. “It offers retailers yet another SKU of sales opportunity.” Sweet potatoes should be available earli- er this year than in years past, he adds. “The industry is trying to bring the new crop to

52 PRODUCE BUSINESS • SEPTEMBER 2007 market sooner this year with upgraded stor- ers can download from its Web site. “These age and curing capacity. It used to be the POS materials can be used to build cus- first week of November; now the new crop tomized displays,” she adds. of cured sweet potatoes should hit the stores Fresh cranberries are one of the last by the first week to mid-October.” truly seasonal crops. “Depending on the

While sweet potatoes are a year-round weather, we’ll have product by the third 55 crop, Thanksgiving is the major sales holi- week of September or a little after that if it’s # day. “We still move about 25 to 30 percent of a warm fall and the fruit doesn’t color up as the crop in November,” adds Wooten. fast,” reports David Nolte, environmental Sue Johnson Langdon, executive direc- health and safety officer, Decas Cranberry tor, North Carolina Sweet Potato Commis- Sales, Inc., Wareham, MA. sion (NCSPC), Smithfield, NC, recommends, Based on current crop projections, “We Reader Serv i ce “Use POS signage to offer menu suggestions should have a record year,” says Mark Sher- burne, general manager of produce, Ocean Spray Cranberries, Inc., Lakeville-Middle- boro, MA. “Most fresh cranberries are sold during the three weeks before Thanksgiv- ing. Retailers are most successful if they “This is the time of plan their season out with promotions start- ing in late September or early October.” year when the Ray Habelman, vice president, Habel- weather is getting man Brothers Company, Tomah, WI, agrees, adding, “This is the time of year when the cooler and people weather is getting cooler and people are starting to think about cranberries.” are starting to think Habelman Bros. expects this year’s crop about cranberries.” to produce a nice supply of the highest-qual- ity fresh cranberries for retail and private- — Ray Habelman label customers during the Thanksgiving Habelman Brothers and Christmas holidays, adds Habelman. Company Ocean Spray will pack fruit out of its new state-of-the-art packing facility in Quebec. “This facility allows us to keep berries refrig- erated during the full cycle,” adds Sherburne. “Because of this, we anticipate a tremendous pack-out and longer-keeping quality.” and recipe ideas or recipe-tear pads. There Nolte advises stores to “display cranber- 118

are many things you can do with sweet ries where it’s cool and dry. Keep bags away # potatoes beyond simply boiling and mash- from misters.” ing them.” “Lock in supply early, and then aggres- NCSPC offers POS posters with four dif- sively promote. This is the time. Come ferent themes — North Carolina, health, Christmas or just after, fresh cranberries are

locally grown and all occasion — that retail- out of the market,” Sherburne adds. pb Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 53 Colorado Provides Prime Location Freight advantage, plentiful organics and diverse offerings attract buyers to the Mile High State.

BY SANDY LINDBLAD LEE

Colorado’s scenery, climate and popularity as distribution center in Aurora, CO, views Colorado’s a tourist destination often overshadow some central location as a key component to the distribu- of its less obvious assets, such as its wide tion chain. “We have the largest distribution cover- array of fresh produce. age of any organic produce supplier in the country.” Colorado has received more than its share of The Mile High State offers diversity that satisfies hits from Mother Nature this year. Several devastat- the cravings and needs of even the most inventive ing tornados, including a giant storm that cut a retail and foodservice buyers. Add Colorado’s natur- swath through Windsor, CO, and numerous twisters al freight advantage and the appeal of its fresh pro- that swept through southern Weld County fields in duce is relatively unmatched. late May, were only part of a record-breaking spring Colorado’s freight advantage continues to gain of adverse weather. The odd weather patterns also attention from buyers because of the ongoing sky- included prevailing lower-than-average tempera- high fuel prices. Buyers who had previously divert- tures that considerably slowed crop growth. ed their purchases to more distant growing regions Despite these problems, shipping of volume has find Colorado’s offer- been steady since harvest began in early summer ings to be increas- — and it is expected to continue through the fall. ingly attractive. David Petrocco Farms, based in Brighton, CO, is “I don’t see any one of the state’s most diversified lettuce and mixed signs of fuel prices green growers. David Petrocco Sr., owner, says Col- ever going down,” orado’s freight advantage is a benefit to his cus- notes Chuck Bird, tomers, but because his growing operations stretch general manager, throughout the state, increased fuel costs severely Martin Produce Co. impact his company. “It not only affects the price in Greeley, CO. “The of diesel fuel and gasoline to run our vehicles,” he higher the fuel, the stresses, “but it also affects the price of our chemi- better the freight cals and waxed containers.” advantage to us.” Lynn Fagerberg, president, Fagerberg Produce Martin’s Colorado Co., Eaton, CO, is working to cut costs and increase growing and packing efficiencies in other facets of his business to help operations are situat- compensate for the rising fuel costs. Fagerberg is ed 40 to 50 miles one of the larger onion shippers in the nation. This north of Denver, in year-round operation ships over 2,700 loads annual- one of the state’s pri- ly, supplying its customer base with yellow, white mary produce-grow- and red onions packed in a full range of bulk and ing regions. consumer package sizes. Its specialized offerings Frank McCarthy, include a year-round sweet onion program and former vice presi- organically grown onions. The company’s customer dent of marketing, base is about 70 percent retail and 30 percent food- Albert’s Organics, service. “Buying a bag with a Fagerberg Produce Inc., with headquar- label promises a product that has been grown and Photo courtesy of Colorado Proud Colorado potatoes were featured during Colorado ters located in packed using the best methods available, and mar- Proud’s Growing Season Is Grilling Season campaign. Bridgeport, NJ, and a keted and delivered to the receiver in the most effi-

54 PRODUCE BUSINESS • SEPTEMBER 2008 Susan and David Petrocco Sr. of David Petrocco Farms Roger Christensen of Colorado Potato Administrative Committee (CPAC), Mike Harper of and Janice and Randy Knutson of Martin Produce Superior Farms, John Stulp of CPAC, Lachlan MacKinnon-Patterson of Frasca Food & Wine, Gary May of May Farms and Jim Ehrlich of CPAC cient manner possible.”

PRODUCE VARIETY Onions and potatoes are two of the state’s leading vegetable crops, but they’re only the beginning. Carrots, sweet corn, beans, squash, mixed greens, cabbage, broc- coli and tree fruit are also shipped. Yellow squash, zucchini and mixed leaf lettuce varieties are a few examples of the items Dallas, TX-based Reaves Brokerage, a wholesale operation servicing wholesale and retail in the Dallas-Ft. Worth, TX region, buys during the Colorado produce season every summer and fall, according to owner Larry Reaves. Ray Keegan, an owner of American Pro- duce, LLC, Denver, CO, appreciates the Col- orado produce that helps him supply his retail and foodservice customer base. The company’s key retail customers include Safeway, Inc., based in Pleasanton, CA; King Soopers, based in Denver, CO; Albertsons, based in Fullerton, CA; Super K-Mart Cen- ter, based in Detroit, MI.; and various His- panic markets. “Colorado vegetables have more flavor, they keep their freshness longer and the quality is great,” he says. Colorado’s dry climate yields high quali- ty onions and potatoes to supply the United States and export markets nearly year-round — thanks to in-field curing and modern stor- age facilities. Most of the onions are grown north and east of Denver, with some in the Arkansas Valley in the southern part of the state and on the Western Slope. The largest potato-growing region is the San Luis Valley in southwestern Colorado. Cantaloupes and watermelons began shipments in late July. The Arkansas Valley maintains a reputation for its legendary Rocky Ford cantaloupes. 111

Tasty high-quality fruit from Colorado # orchards is grown on the Western Slope. The four leading fruit crops are apples, peaches, pears and sweet cherries. Yields have been lighter this year, affected by cool-

er-than-normal temperatures. Shippers Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 55 Colorado Promotions

uy local — for the environment, for farmers, for flavor and for have healthful options while eating at restaurants and other gather- fun. This is the message at the center of Colorado’s campaign ings, and to provide opportunities to move and be active,” White B that features farmers, a celebrity chef and restaurants. Col- explains. “They will invite guests to make lean-and-green choices that orado Proud contributes to the sustainability trend. are healthful for their bodies and the environment, and choose low- Created in 1999 by the Colorado Department of Agriculture (CDA), carbon footprint, locally grown and organic meals. These meals will Lakewood, CO, Colorado Proud, which promotes locally grown, raised be based on healthful nutrition guidelines and include a percentage and processed products statewide, has more than 950 members of ingredients that are locally and organically produced. The lean- including growers, processors, restaurants, retailers and associations. and-green guidelines provide a simple framework for restaurants, A special event was held at May Farms in Byers, CO, to demon- caterers and others to offer at least one healthful and green option to strate the theme, Growing Season Is Grilling Season, and to kick off consumers during the convention.” the 2008 campaign, explains Wendy White, CDA marketing special- Denver-area restaurants will be featuring Colorado products on ist. Partners in this effort included CDA’s Colorado Proud program, the menus during Harvest Week, Sept. 6-12. The Denver Independent Colorado Lamb Council, Arrada, CO, the Colorado Potato Administra- Network of Restaurants (DINR), Denver, CO, created Harvest Week in tive Committee (CPAC), Monte Vista, CO, the California Fresh Fig partnership with the Colorado Wine Board, Boulder, CO, and Colorado Growers Association (CFFGA), Fresno, CA, and Chef Lachlan MacKin- Proud. “We wanted to hold an event that would celebrate the spirit of non-Patterson’s Frasca Food & wine restaurant in Boulder, CO. DINR while contributing to the local community,” explains David “The average food item on your dinner plate has traveled some- Zahradnik, DINR president and general manager, Steuben’s, Denver, where between 1,200 to 1,500 miles, causing a large part of your CO. “DINR is excited to embark on a project that will raise awareness food dollar to go toward transportation costs,” reports White. “There- about eating locally and directly support local producers.” fore, reducing the distance food travels from production to consump- “Eating locally not only helps keep the cost of food down because tion also reduces its carbon footprint.” it doesn’t have far to travel but also encourages the production of Other events continue to draw attention to Colorado-grown prod- superior ingredients while benefiting the environment,” according to ucts. The Colorado Proud television advertising campaign began in Elizabeth Williams, Harvest Week committee chairwoman and events July and continued through the Summer Olympics and the Democra- manager at Highland’s Garden Café in Denver, CO “Harvest Week will tic National Convention in Denver. be the start of more ongoing relationships between restaurants and “A goal of the Democratic National Convention is for all guests to local producers.” pb

report cherries got nailed by severe frost and are practically non-existent this year. Peach volume was expected to be adequate with pear yields reduced. Although apple acreage has been decreasing in recent years, good overall quality was reported. In spite of this year’s reduced volume, sellers say universal regard will maintain the popularity of Colorado fruit. Producers and distributors agree the high altitude at which the fruit grows make it delicious. Other regions of the country have focused on bringing back the lost flavor in stone fruit while western Colorado orchard own- ers claim they have always maintained a practice of not harvesting fruit before it reaches its flavor peak.

COLORADO’S EXPANDING ORGANIC INDUSTRY In 1989, the Colorado Department of Agriculture (CDA), Lakewood, CO, was the first state agency to begin a certification pro- gram for organic farmers, notes Tim Larsen, senior international marketing specialist. 140

# “Since then, some farmers, ranchers and processors are choosing organic production and processing to differentiate their prod- ucts and seek greater farm revenues.” Colorado’s organic industry consists of

Reader Serv i ce 268 certified organic farms and ranches

XX56 PRODUCE BUSINESS • SEPTEMBER 2008 Dorothy Zabka of Martin Produce Chuck Bird of Martin Produce Ryan Fagerberg, Alan Kinoshita and Lynn Fagerberg of Fagerberg Produce with more organic certified acres — over 580,000 — than any other state, according to a U.S. Department of Agriculture (USDA) report on national organic certification sta- tistics. This represents 25 percent of the total certified organic acreage in the United States. Of that acreage, 45 farms utilize 10,700 acres for vegetable production, plac- ing Colorado third in the nation for organic vegetable acreage. CDA reports 30 farms produce organic fruit on over 550 acres. Colorado has more than 60 food processors that are producing some or all of their food products under organic certification regulations. One of the larger organic operations is Grant Family Farms, Inc., a Wellington, CO- based family-owned organic vegetable farm that plants and harvests more than 2,500 acres. Its signature item is savoy spinach but it also grows other organic favorites, such as leaf lettuce, romaine, broccoli parsley, cilantro, chard, collards and several squash varieties, notes co-owner Andy Grant. With a lineup that includes several fin- gerling potato varieties, Strohauer Farms, Inc., LaSalle, CO, has seen phenomenal growth in its organic specialty produce. This past year’s 400 percent increase in organic fingerling production included Russian Banana, French Fingerling, Rose Finn Apple and Peruvian Purple varieties, notes presi- dent Harry Strohauer. “Strohauer Farms’ organic and conven- tion Fingerling potatoes are smaller in size, which makes them convenient, flavorful and versatile,” reports Tanya Fell, director of marketing and retail relations. The compa- ny introduced new packaging with labels reflecting “the natural lifestyle of Colorado” and provides consumer totes with handles for organic and conventional fingerlings. 139

“Fingerlings bake quickly because of # their size,” she adds. “They can also be roast- ed, grilled, steamed, sautéed, boiled, fried or mashed. However you prepare them, finger- lings add outstanding flavor and color to

your favorite meal.” pb Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 57 Sell A New Table Grape Image Rethink grape merchandising to create excitement around popular category.

BY TRISHA J. WOOLDRIDGE

California grapes offer retailers an array of value. He also notes that the California Table Grape opportunities to boost sales through creative Commission (CTGC), Fresno, CA, recently pub- merchandising and marketing. lished Cooking with Grapes, a book that could be merchandised with grape displays. While high prices can make grapes a tough sell Cross-promotion and themed promotions also during the fall, retailers are finding ways to high- broaden grapes’ image. Several ethnic cuisines, par- light the value behind the tasty treat. ticularly Latin, Mediterranean and Indian, include “Grapes are becoming pricey,” states one East grapes. Making a display including these items Coast retailer who preferred to remain anonymous. gives average consumers ideas they likely wouldn’t “I’ve seen people return bags of grapes when they have thought about. saw the price on the receipt. Grapes in everyday dis- Mixing varieties and colors of grapes gives con- plays at more than $2 per pound are hard to move.” sumers a chance to expand their grape experience. While stores can aggressively advertise and Mixed packaging also has an eye-catching appeal. price, the key to maintaining sales may lie in show- “Not only can tricolor packs entice consumers to ing that grapes are worth the price charged. try different varieties but they can also prove to be Grapes are a natural draw for the grab-and-go a helpful option for families that enjoy a diverse consumer. “California grapes not only are sweet variety of grapes,” explains Christou. and delicious but also serve as a powerful antioxi- Whether retailers go for a modern or farm-stand dant and immunity builder, which can prove to be a look, John Pandol, director of special projects, Pan- great marketing tool,” explains Dionysios Christou, dol Bros., Inc., Delano, CA, suggests retailers use vice-president of marketing, Del Monte Fresh Pro- customized promotional materials that are univer- duce. Coral Gables, FL. Antioxidant-rich foods are sal and complement the produce department. “A lot receiving positive media attention. With grapes still of growers and shippers have display ideas, images abundant in the fall, marketing their immunity- and text ready for stores to use directly or incorpo- boosting properties during the change of seasons rate in their program or look. It must jibe with the and kids’ return to school can boost sales. Grapes’ rest of your materials. You don’t want every eight grab-and-go convenience also makes them ideal for feet to look different.” lunch boxes. Partnerships and creative promotions shine a Convenience can be an easy sell, but it can also fresh spotlight on grapes. “We have seen success in pigeonhole an item, limiting its potential. With incorporating grapes into different promotions,” he growing interest in home cook- states. “For example, in fall 2007, Del Monte pro- ing and consumer desire for moted grapes through a very successful partnership something different, expanding with Disney’s Jungle Book that included great prizes consumer perception of grapes, for consumers and higher sales for retailers.” their usage and their image can increase sales. Demos, recipes, DIFFERENTIATE VARIETALS cross-merchandising and cre- When people talk about California wines, they ative promotion are the key. talk in varietals: Chardonnay, Zinfandel, Cabernet Jon Zaninovich, vice presi- Sauvignon, Pinot Noir. When people talk about Cali- dent of marketing, Jasmine fornia table grapes, they talk in colors: green, red Vineyard, Inc., based in Delano, and black. Seeded and seedless also come into play. CA, suggests showing con- The different nuances, textures and flavors of table sumers fancy cheese or hors grapes are lost in the labeling. While some argue d’oeurve plates garnished with consumers aren’t interested beyond color coding, grapes and believes showing taking time to consider variety can boost sales. grapes paired with high-end People get excited about apples, pears and even foods increases their perceived sweet onions. They know their Macouns, Comices

58 PRODUCE BUSINESS • SEPTEMBER 2008 Visit us at PMA Booth #2775

Reader Service # 27 and Vidalias. The seasonal nature for some of these inspires consumers to buy while they’re available. If consumers aren’t aware of grape Grape Misconceptions differences, they won’t get excited about a particular variety or a limited availability — it’s up to stores to create that excitement. rapes may be ubiquitous, but retailers based on sun exposure or variety. A bunch of According to Mike Aiton, senior vice can still drum up consumer excitement grapes on the inside of a vine ripens and president, Sun World International, LLC, Gand improve the eating experience. increases sugar level, even if the skin is pale. Bakersfield, CA, “Varieties are an acquired One common misconception concerns Some strains of some varieties simply don’t taste.” To get consumers to see grapes as color. The California Table Grape Commis- produce deep pigment. Either way, the flavor they see apples and differentiate between sion (CTGC), Fresno, CA, points out that many is not affected by the color. eight or nine varieties “will take a lot of people often mistake the honey/amber color Scott Boyajian, director of marketing, effort and a lot of marketing.” that green grapes can get as a problem with Sunview Marketing International, Delano, Jasmine’s Zaninovich suggests stores run the grape. In fact, the opposite is true. The CA, feels there has been an overemphasis on advertising and merchandising campaigns amber tinge denotes a higher sugar and size at the expense of taste. The size of the — such as new crop of Crimsons or new juice content because the grapes have been grape does not affect taste, and while larger Princess grapes available this month only — left on the vine longer; Amber grapes are, in sizes have visual impact, a customer unhap- to showcase varietals and their seasons, fact, sweeter, than green grapes. py with taste won’t be a repeat buyer. “How “You don’t need to put them on a sale,” he However, more color on red grapes does food eats is important to repeat sales. Flavor points out. Varietal spotlight campaigns not indicate a superior sugar or flavor level. is more important than size, and you should paint a premium image that draws con- “Grapes don’t need to be at full color to be have grapes that eat well.” sumers to the product because it is special sweet,” explains Jon Zaninovich, vice presi- Dispelling misconceptions about grapes and limited, and can help validate the high- dent of marketing, Jasmine Vineyards, Inc., can increase sales. Passing on information to er price points. Delano, CA. “Some grapes just reach a certain consumers isn’t going to hurt sales — and it On the flip side, many growers, distribu- point and they won’t get more color.” Color is just might help. pb tors and retailers argue consumers still wouldn’t be interested in specific varieties. Still, some retailers are trying to expose con- sumers to varietals. A produce expert from a day you end it.” dance of holidays and activities that serve as California-based retailer who preferred to According to Del Monte’s Christou, “Tra- great tools for promotions and displays, remain anonymous says he has almost ditionally, the summer months produce Christou adds. “Take advantage of holidays, never had a consumer ask for a specific vari- higher grape sales than the fall. This could such as Labor Day, Halloween, Thanksgiv- ety, but he purposely picks varieties with the result from retailers providing more elabo- ing and Christmas. They’re great choices for flavor and quality he wants in his store — rate displays and shelf space during this creating themed displays.” even if he doesn’t specify variety to con- time and also due to more outdoor summer sumers. “You have to carry enough variety to activities that require grab-and-go snacks. EDUCATE CONSUMERS keep the customer interested,” he states. However, offering enticing and creative pro- Variety and season are excellent opportu- Some growers note particularly strong motions and displays can promote sales and nities to mesh educational and promotional grape variety sellers. Nick Dulcich, owner of increase consumer satisfaction [during fall material. Savvy home cooks are more likely Sunlight International Sales, Inc., and Jakov holidays and throughout the year].” to want information on flavor and cooking P. Dulcich & Sons, LLC, Delano, CA, notes, “There aren’t as many ads in fall as in opportunities; time-crunched parents may “The fall Top 3 are Thompson Seedless, summer,” reports Zaninovich. “Grapes are want to know the most healthful, conve- Crimson Seedless and Autumn Royal Black.” good all the time and they’re harvested well nient snack to pack for lunch. A wide range New varietals on the horizon include Scarlet into November and stored through Decem- of consumers is looking for information on Royals, a new red seedless variety that will ber. They’re a good item, fresh and U.S. where produce was grown. Catering to a be available in the next few years, and grown. [Fall] is a good time to keep them on store’s demographic demand for information Autumn Kings, a seedless green variety. the shelves and have more end-cap displays.” increases the chance that the extra effort in Fall provides it own opportunities for education will pay off in increased sales. PROVIDE grape merchandising. “As summer fruit While Boyajian rarely sees consumers SEASONAL SUPPORT dwindles in availability, grapes are still able requesting information on variety, he often California grapes are available from May to provide the sales dollars and ad activity sees them requesting information on prod- to January, spanning three calendar sea- needed to keep the produce department uct origin. “People are more concerned with sons. Although these seasonal changes offer viable through the fall ,” explains Dulcich. where their food comes from, and that will their own opportunities for grape merchan- Aiton concurs, adding, “By September, impact what they're looking for.” dising, David Simonian, owner, Simonian the grape season is not even half over. It can Recent illness breakouts tied to food have Fruit Company, Fowler, CA, sees grapes pro- move into the spotlight. Later in the season, increased consumer awareness. “People like moted in store without much promotion for grapes are sweeter.” He believes fall offers an to know where their product comes from,” the seasonal differences. opportunity to expand the grape category Zaninovich states. “California has a pretty Scott Boyajian, director of marketing, and include more varieties. “You can good track record with products.” Sunview Marketing International, Delano, increase sales and one won’t cannibalize the Highlighting that grapes are from Califor- CA, doesn’t see much of a seasonal effect on sales of another. Why not expand with differ- nia can make a difference. “Stores should grape sales. “A grape deal is a grape deal. It ent varieties and different package styles?” want to [label origin] because it increases continues from the day you start it until the The last half of the year offers an abun- sales and it satisfies their consumers better,”

60 PRODUCE BUSINESS • SEPTEMBER 2008 adds Zaninovich. They should want to do it shrink but grapes in clamshells can be dis- appeal and shortening shelf life. Make sure because it’s the right thing to do and because played for up to 72 hours. For both pack- bagged grapes are stacked only two to three they want to help their consumers.” ages, lack of refrigeration at display shaves layers deep, 2-pound clamshells only four off an entire day of display potential. layers deep and 4-pound clamshells at no CREATE While refrigeration is recommended, more than six layers deep. BEAUTIFUL DISPLAYS excess moisture decreases shelf life. Grapes “I’m seeing some interesting displays Effective displays capture the essence of are naturally protected from moisture with using a combination of bulk and bag dis- abundance and grab consumer attention. bloom, a soft white powder that covers the plays,” reports Pandol of Pandol Bros. “Some “The key factors to remember when mer- grapes but is often mistaken for dust. Bloom retailers can do really big displays because chandising grapes are quality and abun- helps them retain moisture on their own, so they have the staff and time to keep them dance,” says Del Monte’s Christou. “Main- it’s better to keep grapes away from misters fresh, but it’s not for everyone. Smaller taining a clean, fresh and abundant display or iced displays. stores are better off with small, frequently will generate greater grape sales. It’s impor- Grapes are delicate and can shatter or stocked displays than larger displays that tant to keep displays stocked with product break from the stem clusters, reducing their don’t stay fresh.” pb and include a variety of offerings. Addition- ally, highlighting different varieties in a non-traditional display, such as secondary display units, can and will motivate impulse purchasing.” Variety can include packages, bags and different-sized clamshells. Sunlight’s Dulcich suggests displaying 50 percent red grapes, 40 percent green grapes and 10 percent black grapes. “Huge displays of eye-catching color mix and large berry size,” combined with retailers “taking advan- tage of marketing vendor packaging” create successful displays, he maintains. “Keep the display looking nice,” advises Simonian Fruit’s Simonian. “If the grapes don’t look nice, people won’t buy them.” “Research shows total grape sales increase when displays mix grape colors, sizes and varieties to add a dramatic look and provide consumers with convenience while selecting grapes,” according to Cindy Plummer, CTGC vice president. “Also, eye- catching spillover or waterfall displays and secondary displays are effective ways to drive additional sales and highlight unique varieties. Abundant, fresh, high-quality and well-maintained California grape displays will increase total grape sales.” Grapes are a “high-household-penetration item for the produce department, Plummer points out. “It’s very important that the grapes on display be in the best condition possible in order to create the most impulse sales. Research shows consumers place a high value on grape displays that are well sanitized, free of debris, fresh-looking and properly labeled with information on the ori- gin, variety and price.”

HANDLE WITH CARE As with any produce item, employees should maintain the right temperature and humidity for grapes. They should be kept at 30

30° to 32° F with a 90 to 95 percent relative # humidity during transport and storage. Refrigeration at display significantly length- ens the shelf life, as does how they are pack- aged. For example, bagged grapes can be dis-

played for up to 48 hours without visible Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 61 Chilean Avocados Ripe For Retail Sales Chile offers retailers a steady flow of counter-seasonal avocados, thus enabling year-round sales.

BY K.O. MORGAN

Chilean avocados are a moneymaker for pro- Produce, we do best when we revolve our sales duce departments, thanks to a peak growing around the different growing seasons.” season that complements rather than com- “There are times of the year when Chilean avo- petes with U.S. producers. cados are at their ripest, while other times retailers are better off stocking avocados from Mexico, Cali- California produces 90 percent of the avocados fornia or Florida,” explains Rick Illig, sales manager, consumed in the United States from March to Interfresh, Inc., Fullerton, CA. “Chilean avocados August, with Chile and Mexico making up the dif- are usually ready in time for Super Bowl, an event ference from September to February. Retailers that when avocado sales are at their highest. Produce merchandise around the different avocado seasons managers should take advantage of that.” can provide their consumers with this popular fruit “If it’s a Hass avocado, which most of Chile and 365 days of the year. California’s are, it’s good — no matter where it “Chile has a unique avocado season,” states comes from,” adds Equihua. “The question should Xavier Equihua, executive director, Chilean Avoca- be, is the Chilean avocado product a complement to dos Importers Association (CAIA), Washington, D.C. the U.S. avocado? The answer is yes, because of the CAIA is composed of Chilean avocado importers, different climates and different growing seasons.” exporters and producers that promote Chilean avo- Debbie Willmann, sales manager, Index Fresh, cado consumption. “It is the No. 1 exporter of avoca- Inc., Bloomington, CA, says, “What comes out of dos to the United States during the fall and winter. Chile and California is the Hass variety, and all That is spring and summer in Chile — California Hass are good when it’s the right time to pick them. has little to no product during these months.” The dual growing seasons provide retailers and In 1984, Mission Produce, Inc., Oxnard, CA, was consumers with Hass avocados year-round.” the first U.S. company to import Chilean avocados. Bruce Dowhan, general manager, Giumarra of “You’ll never find Chilean avocados next to avoca- Escondido, an Escondido, CA-based importer of dos from California because the two different sea- Hass and Fuerte varieties under the Nature’s Part- sons stagger throughout the year,” explains William ner brand, says Chile provides a very consistent, Tarleton, director of communications. “At Mission good quality product. “You have a very expected maturity process.” Maggie Bezart, CAIA marketing director and principal of Maggie Bezart Marketing Services, Aptos, CA, works with avocado importers, growers and handlers. “Avocados are an excellent profit item for produce departments. They are a top advertis- ing-list item, a good profit builder and a healthful snack for consumers,” she says. The avocado, which once had a reputation as being high in fat, is enjoying a surge in popularity, thanks to its many beneficial health properties. The fruit, sometimes known as the alligator pear, is high in potassium, fiber, folic acid, vitamin E and miner- als. “The educated consumer is more aware of the nutritional value of the avocado, including its heart-

Photo courtesy of Prime Produce healthful fats,” continues Bezart. “As marketers, we

62 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 42 may mean that Chile can’t ship in as much [this year].” Promotional Opportunities The United States will have to accept that currently, with the weak U.S. dollar, Chile is doing more avocado business with Europe apitalizing on different times of the year when avocado dishes are particularly popu- than with the United States. Chile wants to lar, such as Super Bowl Sunday and the winter holidays, can help boost Chilean maintain its U.S. export market because of Cavocado sales. “Have a nice selection of ripe fruit displayed with accommodating the high U.S. demand for avocados, but it vegetables, such as lemons, limes and tomatoes,” advises William Tarleton, director of must react to market forces; both sides will communications, Mission Produce, Inc., Oxnard, CA. have to make some compromises this year. Promotional assistance is available from the Chilean Avocados Importers Association Giumarra’s Dowhan says time is another (CAIA), Washington, D.C. “We have a $4 million marketing program that includes media, major challenge in getting avocados from public relations and retail marketing,” reports Xavier Equihua, executive director. “We have Chile into the United States. “The distance is a team of public relations merchandisers who go around and offer these programs to retail- certainly an issue. It’s difficult when you’re ers. Other organizations have not offered TV spots, so we spend a substantial amount of working with a limited amount of time.” money on these. We also do radio, traditional public relations campaigns and non-tradi- Retailers can best meet the demand for tional advertising, such as teaming up with the [Los Angeles, CA] Chivas USA soccer team year-round avocados through appropriate or the American Youth Soccer Organization [(AYSO), based in Hawthorne, CA] to do joint merchandising and marketing. “The key is promotions with them. We also offer TV spots in Spanish.” having plenty of ripe avocados on display,” “These commissions, such as CAIA and others, have lots of money to help retailers,” adds Bezart of Maggie Bezart. “Consumers notes Debbie Willmann, sales manager, Index Fresh, Inc., Bloomington, CA. “They help have become accustomed to purchasing avo- with merchandising and have readily available funds for ads, in-store demonstrations and cados for immediate consumption.” other ways that can benefit retailers.” This will be particularly important this Avi Crane, president and CEO, Prime Produce International, LLC, Orange, CA, agrees, year, because Chilean avocados are expected adding, “The CAIA is made up of professionals who know how to customize promotions for to yield a smaller crop due to the July 2007 each specific store. They have the funds needed and their retailer programs are developed freeze from which Chile is still recovering. with input from importers, exporters and retailers. They have been doing these promotion- “While this year’s crop is not as big — about al attract consumers to their stores during the Chilean avocado season.” pb 40 percent less than normal — there will be a consistent supply during season,” reports no longer receive questions on the fat con- the weakened dollar makes other markets Crane. “Shipments will be the same as the tent in avocados.” such as the United Kingdom and other Euro- previous year — spread out as evenly as the pean markets, more attractive,” relates Avi trees allow.” OVERCOMING CHALLENGES Crane, president and CEO, Prime Produce Chile, the No. 1 exporter of avocados International, LLC, Orange, CA. RIPENING TECHNIQUES consumed in the United States, has made it Mission’s Tarleton agrees, adding, “Right One way to grow Chilean avocado sales possible for retailers to meet year-round now, Chile does better when it sells to is through preconditioned or ripening pro- consumer demand, but the weakened U.S. Europe than when it sells to the United grams. According to Willmann, some retail- dollar and the high price of gasoline are States, but as far as transportation costs go, ers go with avocados at one stage of ripeness challenging the ability to continue to meet Chile will take it on the chin and absorb the — choosing one stage from five possible that demand. “Chile is shipping more fruit cost of gas because the United States is a stages where stage one is not ripe and stage to Europe because of the weakened U.S. dol- strong avocado market.” five is ready to eat — “and some go with a 3- lar,” admits Rob Wedin, vice president of Index Fresh’s Willmann expresses some tiered program where you have a display sales and fresh marketing, Calavo Growers, initial trepidation going into the season. where the fruit on the bottom is not ripe, Inc., Santa Paula, CA. “Prices are high because of fuel, but the the fruit in the middle is almost ripe and the “As it has done with many commodities, market in the United States is good. It just fruit on the top is ready to eat. Both pro- Photos courtesy of Chilean Avocados Importers Association Chilean avocados being readied for export to the United States.

64 PRODUCE BUSINESS • SEPTEMBER 2008 grams are big right now in supermarkets and both work well.” Mission’s Tarleton has a different view of Pricing Concerns what retailers should offer. “What produce managers are finally figuring out is that the giant pyramid displays of avocados don’t omestic avocados can sometimes be adds. “This is particularly true at the start of work anymore because you risk the fruit more expensive than imported; Chilean season, which is when California getting too ripe too quickly. Manageable dis- D whether increased transportation avocados are at peak flavor. There are also plays with a good selection of ripe fruit are costs will change the equation remains to be certain times of year when Chilean avocados what work best. The idea is to sell when seen. Retailers should take advantage of the are in abundance — that’s when pricing can avocados are ripe or will be ripe in a day. Chilean avocado season, when prices are get weak and lower costs to the consumer.” Stores used to sell them rock hard, and con- attractive to consumers. When retailers have an abundance of sumers would have to sit the avocado on the “Sometimes Chilean avocados are less Chilean avocados, Wedin suggests bagging counter or windowsill until it ripened. That expensive than California avocados, which smaller fruit to push sales. “We sell a lot of no longer works with consumers.” means they represent a value to certain Chilean avocados in bags in October, when Merchandising Chilean avocados when shoppers,” explains Rob Wedin, vice presi- the season picks up pace and there’s a ten- they are at their ripest state works best, dent of sales and fresh marketing, Calavo dency for too many small fruits. Bagged fruit advises Calavo’s Wedin. “That’s important Growers, Inc., Santa Paula, CA. is a good way to sell multiple amounts of with any avocado program, not just Chilean “History has shown that at certain times Chilean avocados to consumers. When we avocados. We believe in that 100 percent during in the avocado season, wholesale bag avocados at that time of year, we sell because you want the fruit to move through costs are lower [for Chilean avocados],” he more than a million a month.” pb the system while it’s still good. By the time Chilean avocados reach the United States, key to sales. “Some retailers are paying ship- rooms to ripen the fruit. Fruits give off ethyl- the fruit has been off the tree for two to pers excessive premiums to ripen the fruit for ene naturally — we take the gas and force it three weeks. Any long period in coolers is them, which is unnecessary in my opinion,” through the room to ripen avocados faster.” not good for freshness and you begin to notes Index Fresh’s Willmann. “Others are Bezart of Maggie Bezart believes it’s have more issues with it. You want to get it doing it themselves and saving $2 to $3 per important to keep some unripened avocados to consumers who will eat it right away, and carton. We don’t believe in paying shippers on display. “Have hard avocados on hand for you do that by merchandising the avocados because the fruit is handled too much by the those consumers who do their shopping when the fruit is ripe.” time the retailer gets it. We support the old early in the week and are looking for a prod- Ripeness is key to good flavor, which is traditional way, which is forced ethylene uct to take home and ripen themselves.” pb 26 # Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 65 Maximize Sales Of Eastern Apples Eastern apples offer retailers an opportunity to showcase the unique characteristics of this category veteran.

BY KIMBERLY RINKER

On a national level, Eastern apples have Red Delicious apples from Washington state, have always quietly taken the role as the brides- been considered the premium apple by apple maid in both sales and press. industry insiders. Beautifully shaped with striking eye appeal, the Red Delicious has been a gold While Northwestern apples garner more atten- mine for producers and retailers, however, in tion, Eastern apples are growing in popularity, par- recent years, the tree-ripened, Eastern-harvested ticularly within their own region where they have Red Delicious has caught up and surpassed its always held their own. Northwestern counterpart. Sandy Cohen, president, Cohen Produce Mar- “The Red Delicious is still No. 1 in the world, as keting, Aspers, PA, believes, “Eastern apples are far as volume,” notes Jim Allen, president, New better than anything out of the Northwest in terms York Apple Association (NYAA), Fishers, NY, “but of flavor and sugar content. While our apples are our McIntosh and Empire apples are strong sec- perhaps not as aesthetically pleasing as some of the onds. Consumers are excited about the Honeycrisp, Northwestern varieties, as far as flavor they’re sec- but it has a limited supply.” ond to none.” “The Honeycrisp is very popular now,” agrees Cohen cites a number of factors, including grow- Russell Bartolotta, Sr., general manager, Klein’s Kill ing practices, soil and weather conditions, as con- Fruit Farm Corp., Germantown, NY. “It was devel- tributors to Eastern apples’ flavors and sweetness. oped at the University of Minnesota [Minneapolis, “Consumers are looking for an apple that tastes MN] in 1990, caught on around 2001 and is now the good and is priced right,” he adds. “They want value hottest regional apple out there. There’s not enough and an apple they can be confident in coming back of them to meet consumer demand because of a to again and again.” limited amount of growing trees.” Traditionally, Northwestern apples, specifically Allen cites New York-grown Ginger Gold and Jonagold — both developed in the 1960s — and tra- ditional Cortland and Macoun varieties as top regional favorites. “The McIntosh is an all-purpose, traditional Northeastern apple that caters to all consumers,” says Bartolotta. “The Empire, a cross between a McIntosh and Red Delicious, has been around for 35 years and is good as a snack in slices or on a salad.” Tim Mansfield, director, sales and marketing, Sun Orchard Fruit Company, based in Burt, NY, has a background in Northwest-grown produce and offers his perspectives. “The [Eastern] Red and Golden Delicious are just as tasty as those grown elsewhere. While their flesh might not be as smooth as Northwestern varieties, their flavor is just as good and in most cases, better. The Gala apples grown in the East are, in most cases, better than varieties grown elsewhere. The Eastern McIn- tosh apples are a better quality and have a firmer

66 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 10 flesh. They’re a better-tasting, good-quality apple. The Empire is an excellent, sweet and tart apple. The leading apple grown in New York in terms of volume, the Empire is hugely popular in the United States and the United Kingdom.” Brian Nicolson, vice president and secre- tary, Red Jacket Orchards, Inc., Geneva, NY, believes increased attention to handling and storage options of Eastern apples by growers and retailers have proved invaluable in their marketability. “The Empire has a huge eating appeal, and we’ve been doing such a good job of handling and storage, which is one reason for its rise in popularity,” he notes. “The Gala is an exceptional apple, as is the Fuji, whose and this gives the retailer longevity in the Coast from Boston down through Virginia, selling point is that its skin has a more pear- produce department. For instance, the Rome produce apples with an outstanding taste pro- like quality. The Honeycrisp is a phenome- apple stores incredibly well and is a great file. That’s their main selling point and the non that is so great for the industry — it industry apple, and the Empire combines reason they are super-popular throughout encourages people who weren’t apple lovers top flavor with good handling ability.” this region. Two-thirds of the entire U.S. pop- to eat apples. Not all consumers can differentiate specif- ulation lives in this area and that’s a lot of “All of the Eastern-grown apples have ic apple-growing season, according to Dave consumers eating a lot of apples.” done well because of the apple acid in them, Robishaw, marketing specialist, Virginia which is key to the flavor,” he continues. Department of Agriculture and Consumer PROMOTING APPLES “Many of our newer varieties are dense in Services (VDACS), Richmond, VA. “The East- Lee Peters, vice president, sales and mar- order to get the crunch and crispiness factor, ern-grown apples, including most of the East keting, Fowler Brothers, Inc., Wolcott, NY, suggests targeting varieties to consumer use is key for strong sales. “We have 23 varieties and more on the horizon,” Peters reports. Taste The Difference “Our strong suit is that we offer options, with flavor as our main selling point. The flavor of the apple makes the flavor of the cider, the flavor of the pie or whatever the n-store sampling of Eastern-grown apples Lakeland, FL], Winn Dixie [Stores, Inc., based consumer is creating with a particular type helps consumers to get to know these in Jacksonville, FL] and Shaw’s [Supermar- of apple. The use of our apples is based on I tasty fruits, reports Russell Bartolotta, Sr., kets, Inc., based in West Bridgewater, MA], the preference of the consumer, and the general manager, Klein’s Kill Fruit Farm that all do an excellent job of promoting variety of apple used is based on the demo- Corp., Germantown, NY. “Taste testing is the apples in this regard.” graphic of the consumer.” best way to showcase apples. Once con- Jim Allen, president, New York Apple Sun Orchard’s Mansfield agrees, adding, sumers taste the rich flavor, they’re hooked.” Association (NYAA), Fishers, NY, says retail- “Consumers are choosing flavor over Brian Nicolson, vice president and secre- ers should promote locally, touting the nutri- appearance. Eastern apples are known for tary, Red Jacket Orchards, Inc., Geneva, NY, tion and health benefits of apples. “The their rich flavors and consumers are more agrees, adding, “There’s no better way to health benefits from apples are numerous discriminating now in terms of flavor and promote apples than to slice them and have and with obesity in today’s youth as a con- flesh texture.” people taste them. There are loads of oppor- cern, the switch to a healthful, fresh apple is “All grocery stores market their apples in tunities to increase sales through sampling. easy,” he advises. “Retailers can push apples different ways — in bags, bulk displays and There are also tie-ins with recipes, such as as portable, grab-and-go items that can be totes,” notes Peters. “Supermarkets need to dips and peanut butter. With the health and marketed anywhere. Place them in the be cognizant of their consumers and build obesity challenges, apples are a perfect solu- supermarket deli and encourage consumers the best display for their particular market. tion. If you give a kid a great tasting apple, to pick up an apple instead of a bag of chips Aesthetically, arranging apples by using it’s convenient both as a snack and with a with their sub. Promote the fact that they are color breaks is a great marketing tool. It meal. It’s also super-green — you’ve got no a good, healthful choice and that they are brings attention to the apple varieties, offer- packaging to throw away.” hardy and less perishable than other pro- ing a rainbow of taste options.” John Iannacci, sales, Joseph P. Sullivan & duce options.” “With the big push this year toward sup- Company, Inc., Ayer, MA, believes the Hon- “We have all the makings of a great crop porting local growers and an increased eycrisp is the perfect apple for retailers to this season,” concludes Dave Robishaw, awareness of our carbon footprints, there’s sample. “The Honeycrisp should always be marketing specialist, Virginia Department of no better way to push apple sales than with part of sampling. It’s got great flavor, and it’s Agriculture and Consumer Services (VDACS), environmentally friendly bags, totes or as very crisp and juicy, so it highlights a wide Richmond, VA. “Retailers have a tremendous loose items,” offers Cohen Produce’s Cohen. variety of profiles. We have a large number opportunity to get these apples in front of “A grocery store can show the consumer it of East and Southeast Coast retailers, such the public, display them prominently, tout cares about the environment by offering a as Publix [Super Markets, Inc., based in their benefits and make an impact.” pb eco-friendly product that requires almost no packaging per se.” pb

68 PRODUCE BUSINESS • SEPTEMBER 2008 Michigan Apples Count On Local Theme Set Michigan apples apart from Washington and California varieties by focusing marketing efforts on locally grown aspect.

BY JON VANZILE People have been selling the appeal of apples Whole Foods Market, Inc., based in Austin, TX and — or at least the idea of apples — since bibli- its 110-store subsidiary Wild Oats, paved the way for cal times. the locally grown movement. These high-end retail- In today’s world, apples are a commodity prod- ers succeeded in creating a narrative around their uct — retailers typically make decisions based on produce using in-store signage, promotions and availability and price. marketing campaigns. Consumers, too, rarely pay attention to an “While we ship to two-thirds of the country and apple’s origin, according to a study conducted by the throughout the southeast and south-central states Michigan Apple Committee (MAC), DeWitt, MI, and and Canada, we have a very strong presence in our the business school at Michigan State University, local markets,” explains Don Armock, president, East Lansing, MI. The study found the majority of Riveridge Produce Marketing, Inc., Sparta, MI. consumers didn’t know where their apples came Steve Wright, produce program manager at Spar- from. But here’s the surprising news: This indiffer- tan Stores, Inc., a Grand Rapids, MI-based chain ence may contain the seeds of a marketing strategy. with nearly 400 stores, believes that if retailers pro- Pioneered by celebrity chefs and cooking maga- mote Michigan apples, consumers will respond zines, the local produce movement is probably here favorably. “Our consumers tell us that 75 times out to stay. When asked in surveys, consumers express of 100, they’d prefer Michigan produce,” he states. a strong preference for local produce. They believe “Through marketing and signage, we want to tell a locally grown produce is fresh, caters to regional story about our produce.” preferences and is environmentally conscious The first challenge is finding the advertising dol- because it consumes less fossil fuels during ship- lars and then balancing the increase in marketing ment than produce shipped across expenses against any increase in apple sales or pro- the country. “There are studies on duce margins. which apples people prefer, and peo- Another problem is operational. It’s easy to ple prefer apples grown in their area,” come up with brilliant marketing plans and signage explains Barry Winkel, general but too often, signs are displayed improperly or not manger of Greg Orchards Produce, at all. High turnover means many produce depart- Inc., Benton Harbor, MI. ment employees may have no idea what the store When viewed lin this light, Michi- is trying to accomplish, Wright adds. gan apples are an easy sell. In gener- al, the market for Michigan apples CREATING A FARM MARKET extends in a southward-facing cone MAC is working hard to raise visibility of Michi- from Michigan, encompassing the gan apples. “I don’t think the locally grown trend is Midwest, the Gulf states, Florida and going to end any time soon,” Yockey reports. “Retail- Georgia. Washington apples dominate ers are trying to fine-tune strategies to offer locally on the West Coast, while New York grown produce and add apples that are regional apples dominate on the East Coast. favorites.” To support this effort, MAC offers signage Michigan fruit is available in 26 and POS information that raises consumer aware- states, mostly east of the Mississippi, ness of the apples’ origins. according to Denise Yockey, executive Unfortunately, these kinds of programs often director, the Michigan Apple Commit- run into trouble inside the stores, according to tee (MAC), DeWitt, MI. Wright. The trend in many retailers, including Spar-

Photo courtesy of Michigan Apple Committee Chains, such as the 270-store tan Stores, is toward uniformity. Increasingly,

SEPTEMBER 2008 • PRODUCE BUSINESS 69 stores want all of their signage to have the many of them in stores.” the market-to-miles approach or to focus on same look, so there is no place for external- Packaging identifies apples as coming carbon footprints. A retailer could point out ly produced marketing material. from Michigan. Most Michigan growers use that Michigan apples don’t travel as far as But even if externally produced materi- a similar bag highlighting a Michigan apple apples from Washington or New York. “Peo- als can’t be used, the strategy can still be logo, and tray apples are affixed with a stick- ple are interested in a smaller carbon foot- effective. Many large stores are creating a print,” notes MAC’s Yockey. farm-market atmosphere, offering local and However, Wright says the market-to- organic produce. Retailers can achieve this miles approach is a hard sell when it comes by promoting unusual varieties of in-season to justifying higher prices. “Ultimately, peo- Michigan apples or apples grown with inte- ple make decisions with their pocketbook. grated pest-management techniques. People who are environmentally conscious The best time to market Michigan apples say they’re not spending extra money on is during the harvest period, advises travel, but in today’s economy, I think that Riveridge’s Armock. “September, October price is a more sensitive issue.” and early November are when apples are in Soon it will become easier to add state-of- greatest supply. Consumers will be looking origin information. On Sept. 30, the country- for them, so you’ll want to catch their atten- of-origin law first introduced in the 2002 tion with eye-catching displays.” Farm Bill will take effect and state of origin Retailers should ask suppliers if unusual Photo courtesy of Michiganwill Apple Committee be a method of compliance for U.S. varieties of Michigan apples are in season product. and how their apples were grown, advises er identifying the apple as Michigan fruit, Yockey says retailers can benefit from Spartan’s Wright. Michigan growers produce Wright reports. moving away from a commodity-based more than 20 varieties, including staples approach toward a more sophisticated, local such as Red Delicious, Jonathan, Jonagold, ENVIRONMENTAL APPEAL produce or environmental message. “They’ll Empire, Gala and McIntosh. Honeycrisp is The local produce approach might work get improved consumer satisfaction and it quickly becoming a consumer favorite. for retailers in Michigan and throughout the will give them an opportunity to stay con- The state also produces several exotic upper Midwest, but further away it’s diffi- nected to their customers. It’s important for varietals, such as the Winesap, says John cult to pitch Michigan apples as “locally them to let their consumers know they are Schaefer, president, Jack Brown Produce, grown” when apples must travel more than matching their desire for locally grown pro- Inc., Sparta, MI. “It has yellowish flesh, a lit- 1,000 miles to reach the shelves. duce or a smaller carbon footprint, and tle snap and a wine taste. You don’t see In this case, it may be beneficial to use they’ll probably sell more apples.” pb 121 100 # # Reader Serv i ce Reader Serv i ce

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SEPTEMBER 2008 • PRODUCE BUSINESS 73 S P E C I A L RE P O R T Idaho Potatoes The Importance Of Brand Photo courtesy of Idaho Potato Commission IPC Potato Lover’s Month second prize winner in the 6-9 cash-register category: Javier Cosneros, Save Mart #86, Modesto, CA

Marketing, advertising and promotions drive usage and consumer awareness of high-quality Idaho Potatoes.

BY LIZ PARKS

hat does an Idaho potato have in common brand. In the produce category, Idaho has a long track record of with Tide or Crest? If you guessed that an successful brand building. “It’s the only branded potato,” according Idaho potato is regarded by consumers as a to Seth Pemsler, vice president, retail/international, for the Idaho W valued and trusted brand, then you under- Potato Commission (IPC), based in Eagle, ID. “If you ask con- stand why Idaho potato suppliers consider sumers where potatoes are grown, they will tell you Idaho.” their product the “premium alternative” in the potato category. More than 70 years ago, IPC began marketing Idaho potatoes. Idaho potatoes are not regarded as commodities. Not only do While all potatoes have nutritional value and make great compan- Idaho potatoes add class to the product mix of produce depart- ions to meals built around meat, poultry, fish and even other vegeta- ments but they also generate significant profit dollars, according to bles, IPC has always made sure consumers know that Idaho pota- Tony Miller, produce manager for Tom’s Food Market in Freeburg, toes are special. IL, one of 13 stores owned by Mascoutah, IL-based Norrenberns, “We have a long history growing potatoes,” explains Dick Food, Inc. He believes consumers, sold on the nutritional value and Thomas, vice president of sales, Potandon Produce, LLC, Idaho superior taste of Idaho potatoes and determined to give their fami- Falls, ID. “IPC has done a great job promoting and shaping the lies and friends the best when they cook, willingly pay premium brand.” prices for Idaho potatoes. When IPC first began marketing Idaho potatoes, it used print It takes time and dedication to build a quality product into a and radio advertising. In recent years, it has focused on television

74 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 93 ads in major metropolitan cities, and this year, for the first time, it is using national television to promote the brand. “We’re Idaho Potatoes 101 really reinforcing the health and wellness benefits associated with Idaho potatoes,” Pemsler notes. • Roughly one-third of all the potatoes grown in the United States are grown in Idaho. • The average American eats 126 pounds of potatoes each year. IDEAL • The potato was the first vegetable grown in outer space. GROWING CONDITIONS • New York consumes more Idaho potatoes than any other state, followed by Ohio, Florida, Pemsler cites a number of factors that Pennsylvania and Texas. make Idaho potatoes unique. The state has • To give a baked Idaho Russet a South-of-the-border twist, top it with cream cheese and an ideal climate for growing potatoes — finely chopped jalapeños. warm days and cool nights. The soil is vol- • For an Italian twist, suggest topping Idahos with olive oil and chopped garlic. canic and mineral-rich and the state’s fields • To add a dash of French appeal, top with Dijon mustard and fresh dill. have access to a consistently available inte- • For St. Patrick's Day, add an Irish twist — mash Idahos and add kale. grated water supply. • Add mint leaves to mashed potatoes for an Indian taste and nuts and cinnamon for Middle “We have a rich volcanic soil that helps Eastern taste give our potatoes their distinct flavor,” Source: Idaho Potato Commission (IPC), Eagle, ID. explains Thomas. Growers use the expertise of world-class potato researchers to keep abreast of trends, identify optimum ways to develop new varieties and maximize shelf life, fresh- study commissioned by IPC, 86 percent of that’s what’s driving growth in usage and ness and nutritional value. consumers surveyed said they were “very sales at retail.” Randy Bonner, produce manager, Spain’s familiar” with the Idaho brand. Many said People are also eating at home more Supermarket, an independently owned they associated Idaho potatoes with “qual- often because of the economy, fuel costs supermarket in Grenada, MS, calls Idaho ity” and “flavor” and would be willing to pay and inflation. Potatoes are popularly per- potatoes “the best potatoes in the world,” a premium for Idaho potatoes. ceived as being a healthful, affordable alter- and reports that more than 90 percent of To further the brand’s recognition native to pastas and rice. “Potatoes have the potatoes he carries are Idahos. among consumers, IPC produced national made a resurgence since the end of the Likewise, Tom’s Miller says Idahos television commercials featuring health and Atkins-Diet craze,” reports Phillips. account for about 70 percent of his potato fitness expert Denise Austin. The commis- “That’s really helped out sales, not just sales, adding that he has no worries about sion expects the commercials will generate of Idahos but also of all potatoes,” Phillips spoilage because they sell through very 780 million gross impressions this year, continues. “I think, too, that the economy quickly. “People pay more for Idahos with the key target market being adults, and the war [in Iraq] have had a huge because they taste better. I can’t describe it, ages 25 to 54. The ads are running on food effect on how people are modifying their but they taste like a high-quality potato.” and health channels, including the Food eating habits. I think more people are eat- Kevin Stanger, vice president of market- Network, Discovery Health, Lifetime, CNN, ing more meals at home. So potatoes are a ing, Wada Farms Marketing Group, LLC, The Weather Channel and more. hot item right now, partly because of value the Idaho Falls, ID-based division of Wada “Instead of running promotions that fea- and partly because they’re a comfort food Farms Potatoes, Inc., Pingree, ID, notes ture just price, retailers can drive sales and so versatile. They have so many differ- Idaho potatoes “absolutely generate and more effectively by running promotions to ent uses that they’re a good value com- bring value to the potato category and pro- support the benefits of potatoes, such as the pared to other alternatives.” duce departments. If I am in a booth at a vitamins and the nutrients,” advises Phillips. Because Idaho potatoes are frequently food show, and people come in and see pota- Ryan Bybee, sales manager, GPOD of used as a means on carrying other flavors toes, almost everyone says ‘Oh, Idaho pota- Idaho, a Shelley, ID-based shipper, points to the palate, they are often topped with toes,’ whether they are Idahos or not. That’s out that IPC has field representatives who salsa, butter, cheese or sour cream. IPC has because when most people see a Russet work with retailers, educating them “about developed a number of cross-merchandis- potato, they assume it’s from Idaho. There what each variety is used for and what ing and/or coupon promotions, featuring is a perceived connection in the country they’re good for, so the retailers in turn can brands, such as Kraft Cheez Whiz and between potatoes and Idaho.” educate their consumers.” ranch dressing, Fresh Gourmet salad top- At 4,600 feet in elevation, “Idaho has On the national level, 86 percent of all pings, Oscar Meyer bacon bits, Marie’s very warm, hot days, but our nights cool households eat potatoes, according to New salad dressing, Hillshire Farm ham, Salmon down,” explains Scott Phillips, director of York, NY-based ACNielsen Homescan data. Creek pork roast, Concha y Toro wines and sales, Nonpareil Corp., a grower, shipper Relatively new varieties, such as Petite St. Pauli Girl beer. and packer headquartered in Blackfoot, ID. Golden potatoes, Red and Yellow Round “That allows the potato plant time to regen- potatoes, Yellow and Purple Fingerlings, CREATIVE DISPLAYS erate. It can use the heat to grow through- along with smaller packages and microwav- IPC sponsors best-display and best-ad out the day, then it reenergizes and repairs able packages are helping drive sales. contests during National Potato Lover’s itself at night.” “Specialty variety potatoes were once pri- Month in February. The contests give pro- marily found in restaurants,” explains duce managers, category managers and CONSUMER RECOGNITION Bybee. “Today, consumers have come out individual stores the opportunity to win According to an independent research and said ‘We want it all the time,’ and I think cash and other prizes. Produce managers

76 PRODUCE BUSINESS • SEPTEMBER 2008 receive prizes, such as a free Swiss Army more and more to purchase smaller bags tion program will also help prevent shrink.” watch, simply for entering their stores in that can be used before signs of aging and the contest. spoilage, such as sprouts, start to appear. MARKETING Spain’s Bonner, who won a first prize “The trend, especially for the special vari- OPPORTUNITIES this past February, displays Idaho potatoes eties, is toward small packs, 2- and 3-pound If retailers are not already working with nearly every week. His prize-winning, 14- packs,” according to GPOD’s Bybee. “It’s for IPC to develop strong marketing programs foot long by 8-foot high display featured a convenience. You just don’t use more than to drive sales of Idahos and other potatoes, hand-drawn, black cardboard train with the two or three Fingerling potatoes on a plate, Wada Farms’ Stanger highly recommends Idaho Potato Man logo at the center of each so the smaller packs are designed to meet they do so. “For retailers trying to drive wheel. He says weekly potato sales jumped consumer demand.” potato sales, the No. 1 priority is to carry more than 60 percent during the promotion. Potandon’s Thomas points out that pota- Idahos. Then work closely with IPC Along with the train hung between end- toes have a tendency to green under super- because it has a vast resource of POP, POS caps adjacent to the produce department, market lights. “This can be prevented by and all sorts of marketing/merchandising Bonner stacked 5- and 10- pound bags of keeping them covered at night. A good rota- tools that retailers can take advantage of. Idahos as well as displays of Idaho Reds and Idaho loose potatoes. He also cross-mer- chandised a variety of related products from other companies that also sponsored the contest, including Idaho instant potatoes, Kraft Cheez Whiz, Kraft ranch dressing and other items associated with baked potatoes, such as Oscar Meyer bacon bits. It took him a month to conceptualize and create the display and the signage, which read “Take the Fast Track Home with Idaho Potatoes and Kraft Foods.” Tom’s Miller also win a display prize in this past year’s National Potato Lover’s con- test and he came in fifth for an ad he wrote advertising Idahos. The 18-foot display was “easily the most visible display in our store” that month, he notes. It contained six display tables fanned out under a banner that read “Unlock The Flavor” and featured a combina- tion lock with images of Idaho potatoes. Miller used rack displays for the presen- tation, cross-merchandising various dress- ings that could be used on potatoes. Sales of Idaho potatoes for the month “more than doubled,” he reports, and most of the sales were made at full price. Miller discounted the Idahos 15 percent only for the one week that the ad ran. He also gave away recipes for cooking with potatoes. Knowing potatoes are often a planned purchase, many supermarkets make a point to enhance sales by displaying specialty and premium potatoes in the front of their pro- duce aisles, where traffic flow is the heavi- est, to gain incremental or higher-ticket pur- chases. They will also promote potatoes weekly even during off-peak seasons and frequently cross-merchandise potatoes with beef, pork, lamb and chicken.

OVERCOMING SPOILAGE ISSUES 7

To minimize waste and shrinkage due to # spoilage, most retailers today analyze sales trends to determine the appropriate space- to-sales ratio for all types of potatoes. It’s become common for retailers to reduce

space for large-size bags as consumers tend Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 77 IPC Potato Lover’s Month first prize IPC Potato Lover’s Month first prize winner in the 1-5 cash-register winner in the 6-9 cash-register category: Randy Bonner, category: Jeff Stewart, Spains Supermarket. Grenada, MS Piggly Wiggly, Bonifay, FL

IPC Potato Lover’s Month first prize IPC Potato Lover’s Month second winner in the 10+ cash-register prize winner in the 10+ cash-register category: Sharon Brennan, category: Tammy Raber, Viking Village Foods, Reedsburg, WI Bueh;ers River Styx, Medina, OH

Wada Farms offers a variety of programs take them from the potato fields all the way that can be customized to a retailer’s spe- though the operation. In research and cific needs, including different bag sizes so development, retailers can look at different retailers can offer consumers a broad range usages for potatoes as well as at the differ- of pricing and pantry-storage alternatives as ent technical aspects of potatoes.” well as value-added packs that can help the For example, Nonpareil helped Tesco, retailer differentiate itself from the competi- headquartered in Cheshunt, Hertfordshire, tion. Wada Farms recently launched several England, develop different recipes for innovative items, such as individually Fresh & Easy Neighborhood Market, Inc., wrapped, microwavable Easy Bakers and its El Segundo, CA-based chain with 71 Easy Steamers, a 1.5-pound bag of Idaho stores, and create other value-added pro-

Russets that can be microwaved and served grams involving Fresh & Easy and Idaho # 133 in eight minutes. These products have potatoes. “Nonpareil is always evaluating played a key role in creating a fast-growing new varieties, new colors and different new category of fresh potatoes. uses, looking for new ways for consumers Wada Farms also sponsors cooking con- to utilize Idaho potatoes,” Phillips adds. Reader Service tests with consumers submitting recipes Still, for all the innovation in new vari- using Idaho potatoes. It also created retail eties and convenience packaging, the promotional events, including one where biggest driver of potato sales is “brand retailers gave away a Betty Crocker cook- recognition — the fact that consumers rec- book that featured recipes using Idaho pota- ognize the Idaho brand,” GPOD’s Bybee toes to consumers who bought a 10-pound stresses. “So the best thing retailers can do bag of Idaho Russets. The company is to make sure their signage displays the recently created a sister company called Idaho brand, and that’s easy to do because Category Partners, which provides cate- there is a ton of signage available.” gory management and category-review ser- “When we did our Unlock the Flavor vices to retailers. Idaho potato display last February, I sold Nonpareil has produced POS materials everything I had out there,” Tom’s Miller for retailers and it offers technical and reports. “I think part of the sales were for research-and-development assistance. It can pantry, but I also think once consumers “help retailers with recipes, and evaluate took the potatoes home, they cooked them. # 88 new varieties of potatoes,” reports Phillips. So we probably got them to come back “We can bring retailers to our facility and more frequently to buy more as well.” pb Reader Service

78 PRODUCE BUSINESS • SEPTEMBER 2008 Fagerberg Produce, Inc. Since 1948

COLORADO SWEETS

Transplant and seed onions are available in specified colors and sizes; packaged in 2, 3, 5, 10, 25, 40, 50 pound quantities. To suit our customers needs, our product is available in bags, high-graphic boxes and reusable plastic containers

YELLOW, WHITE & RED ONIONS • All size packs available • Shipping July through March

Sales handled by: Lynn & Ryan Fagerberg & Alan Kinoshita 970-834-1353 or 970-834-1357 Fax 970-834-1434 www.fagerbergproduce.com P.O. Box 8 Eaton, CO 80615 Reader Serv i ce #84 Reader Serv i ce #128 Reader Serv i ce #96 Reader Serv i ce # 3 2

SEPTEMBER 2008 • PRODUCE BUSINESS 79 S P E C I A L RE P O R T Stepping Up To The Plate Photo courtesy of Wisconsin Potato and Vegetable Growers Association Potato and Vegetable Photo courtesy of Wisconsin The Wisconsin potato industry started preparing years ago for today’s marketplace challenges and trends.

BY MEREDITH AUERBACH

isconsin may not be the top potato-producing cialty potatoes complete small but important segments within these area in the United States, but the state indus- groups. We are responding to changes at retail and in consumer try feels it has a firm grasp on the future. tastes with smaller-sized packaging, clean, ready-to-use single wraps W With 145 growers farming 65,000 acres, and growth in organics.” Wisconsin is the No. 3 producer of potatoes WPVGA’s promotions are focused on the versatility, nutrition in the country, according to Tim Feit, director of promotions and and dollar value of potatoes in a time of rapidly increasing food consumer education, Wisconsin Potato and Vegetable Growers prices. “The industry is organizing to export to Mexico and that Association (WPVGA), Antigo, WI. “For the past 10 years, Wiscon- effort will include all varieties,” he reports. “We’re in good shape for sin has moved toward different ways of farming to grow healthful now and into the future.” potatoes and be concerned with whole-farm health. We are involved A large number of Wisconsin’s potato farms have long histories with a program called Healthy Grown, a research-driven initiative for in the industry and have found vertically integrated companies to profitable, large production sustainability and have created our own be important to success. For nearly 100 years, Bushman’s, Inc., brand to differentiate these potatoes. Our market areas in the Mid- Rosholt, WI, has supplied the finest tubers — Russets, Reds, Whites west and east of the Mississippi River help us capitalize on the and Yellows. In 1960, the current company became a year-round trends for locally grown foods, and high fuel costs make our pota- supplier, growing potatoes and contracting with other sources. “We toes an even better value.” are all fresh and offer a wide range of packaging,” explains Mitchell This year, Feit expects Wisconsin’s crop to be good, if average- Bushman, president. “About 40 percent of our product is private sized. “In general, our mix is approximately 57 percent Russets, 32 labeled to meet the needs of customers. We expect this will be an percent Whites and Yellows and 11 percent Reds. Some of the spe- interesting year. In the southern portion of the state, almost 2,000

80 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 119 acres were lost in the flooding — mostly Russets and Reds — which may result in a gap in supply. The rest of the state looks Sustainable Potatoes good, but there will be upward pressure on pricing.” Richard Okray, secretary/treasurer, n its 10th year, Healthy Grown is a program collaboratively developed by the Wiscon- sales, Okray Family Farms, Inc., Plover, WI, sin Potato & Vegetable Growers Association (WPVGA), Antigo, WI, the University of agrees with Bushman’s assessment about Wisconsin (UW), Madison, WI, the World Wildlife Fund (WWF), Washington, D.C., the 2008 harvest that began in August, and other conservation groups. adding “We specialize in potatoes. It’s our For Wisconsin potato farmers, the program is an integral part of the definition of sus- core business from farming through pack- tainability, built on what is good for people, the planet and the necessary profitability to aging and distribution to retail. Private label keep it all going in large production agriculture. The program began with increased makes up almost 70 percent of what we emphasis on Integrated Pest Management (IPM) and, as a whole, falls somewhere grow, package and sell. It’s a way for retail- between conventional and organic. ers to better guarantee quality. We sell more While dramatically lowering inputs of pesticides, changes in cover crops and rota- than half of our fresh potatoes to the Top 10 tions and more focus on soil fertility have increased yields. “We estimate 60 percent of retailers east of the Mississippi River.” Wisconsin potatoes practice the Healthy Grown methodology. As an industry, we’ve Alsum Produce, Inc. (API), Friesland, taken it farther than other states,” says Richard Okray, secretary/treasurer, sales, Okray WI, is another vertically integrated opera- Family Farms, Inc., Plover, WI. tion that grows eight to 10 potato varieties, According to Mitchell Bushman, president, Bushman’s Inc., Rosholt, WI, “The pro- including Purple Majestic, varieties of Fin- gram has even generated new revenue sources, giving Wisconsin farmers new options. gerlings and other specialties. “About 80 per- While improving the land for potato production, we can sell the product of rotation cent of our potato business is the consumer crops and improve the risk/reward axis.” retail channel,” notes Larry Alsum, presi- Soquel, CA-based Protected Harvest, a non-profit independent oversight organization dent. “For them, the days of the 50-pound established to certify farmers’ strict adherence to reduced-pesticide and sustainable bag are largely over. The 5-pound bag is now agriculture standards, is key. Participating farms financially support the voluntary program. pb our biggest seller and we have a rapidly growing business in mixed specialty bags stringent production requirements and cer- say it is very strong yet. We are starting our weighing either 24 ounces or 3 pounds.” tification by an independent third-party. Fresh Preferred program, which will fea- Equally committed to and enthusiastic Wisconsin’s central location fits new con- ture items like a larger Russet potato.” about the opportunities for fresh potatoes is sumer trends and preferences to purchase “Consumers are more interested in buy- Russ Wysocki, president, Russet Potato and use locally grown products. Organic ing local and they tell us it is important,” Exchange (RPE), Bancroft, WI. “During the potatoes are also gaining momentum. explains Vince Mastromauro, produce man- past couple years, potatoes have been win- The nature of the producing companies ager at the Highland Park store owned by ners and we expect them to be this year as and their vertical integration also enable Sunset Food Mart, Inc., a Chicago, IL-based well. Wisconsin has its own niche: location them to be responsive to customer requests chain with four stores. “It just hasn’t yet and close access to large eastern markets, for packaging and other services, such as happened for potatoes.” economic value and nutrition, and the abil- category management and close product ity to mix loads and do specialty packaging. tracking. “We see the three largest growth WAVE OF THE FUTURE We have a great story on sustainability. The segments in the potato industry as organics, The big innovation of the past several Wisconsin potato industry has been ahead sustainability and the locally grown move- years was the single spud — a washed, of the curve in this area. We give retailers ment,” explains Alsum. “We are experienc- clean, sized Russet potato wrapped in a spe- something real to talk about with their con- ing growth in all these areas.” cial film, ready to microwave and eat. Today, sumers. Healthy Grown covers potatoes “Processed fresh potatoes are the wave of from seed to consumer. Our self-regulation RETAILERS CATCHING UP the future,” reports Wysocki. also means we can help control our future It can be easy for retailers to take pota- Other producers agree but are not quite and that is important to our profitability.” toes for granted. Producers have an oppor- ready to talk about their next products. tunity to convince their customers to make “We’re moving into product development in NEW MARKET NEEDS a bigger splash with potatoes. “We offer five a big way, but in a sense it is a totally new Wisconsin potato farmers and suppliers SKUs of Wisconsin potatoes and base that business,” says Bushman of Bushman’s, are intensely focused on fast-moving purchase decision on consistent quality, Inc. “We’re learning fast and expect to roll changes in market and customer needs. cost and service,” notes Warren Wirtanen, out new products in about 12 to 16 months.” There is close coordination and consistent director of produce for Save-A-Lot, Ltd., the Okray explains, “We’re watching the rise communication with other potato organiza- Earth City, MO-based chain with 1,190 of new generations that will depend on tions, such as the U.S. Potato Board stores and a subsidiary of Eden Prairie, ready-to-heat-and-eat fresh products. Few (USPB), headquartered in Denver, CO, to MN-based Supervalu, Inc. “We are increas- will have the time, knowledge or even per- help increase consumption. ingly trying to source products that are haps the interest to cook from scratch. Promotions include USPB’s Potato Good- more local to meet customer requests and Processed is where the market will be.” ness Unearthed, an initiative to educate con- control transportation costs.” “Consumer education on nutrition and sumers about potato nutrition and innova- Dan Dipple, produce director, Fresh use is so important,” adds Alsum, “We’re tion. Likewise, the Wisconsin Healthy Brands, Inc., a 100-store chain based in She- using the package to speak with consumers Grown potato program addresses sustain- boygan, WI, says, “For us, the preference and making use of coordinated programs to ability and environmental protection with for local product is coming, but I can’t really amplify the message to consumers.” pb

82 PRODUCE BUSINESS • SEPTEMBER 2008 PHILADELPHIA REGIONAL MARKET PROFILE Philadelphia Stays Ahead In Unstable Economy

Despite freight costs and weak dollar, Philly’s market is overcoming the odds.

BY JODEAN ROBBINS

he Philadelphia Regional Produce Terminal, Philadelphia, PA, cost of fuel and other inputs is making it harder for all of us to be com- is weathering the same storms as everyone in the industry petitive,” states Alan Taylor, owner, Taylor Produce, Inc., Rigby, ID, a yet business seems to be steady despite the increasing costs. grower/shipper that has done business on the Philly market for 20 years. “Everyone complains because of the increasing cost of doing “Nobody is making any money,” agrees Jack Collotti, Jr., owner of T business,” explains Todd Penza, salesman with Pinto Bros., Collotti & Sons, Inc., on the terminal market. Inc., on the terminal market. “It’s harder for everyone and you have to sell harder and really push to get the prices. But, the customers still Customer Reaction have to buy what they need.” Vendors report seeing some short-term changes with buyers. The issue of increasing freights costs is on the mind of most mer- “We’re not seeing any long-term changes in buying patterns,” explains chants, suppliers and customers. “Freight rates are astronomical,” John Vena Jr., president, John Vena, Inc., on the terminal market. states Joe Procacci, CEO, Procacci Brothers Sales Corp., on the termi- “However, since the beginning of the year, we’ve seen a lot of short- nal market. “They’re the highest I’ve ever seen in my life.” term interruptions changing current buying. A general unease about the “Everybody in the industry is surprised how transportation is more economy is filtering down.” of an issue than buying the product right now,” adds John Durante, “We see customers reacting differently,” adds Martin Roth, vice president, Nardella, Inc., on the terminal market. “Transportation used president, Coosemans Philadelphia, Inc., on the terminal market. to be an afterthought but now it’s first and foremost.” “Some are buying less volume because their customers aren’t spending The increasing costs hit everyone hard. “We’re all on the same level as much and others are seeing differences in how customers are paying. with this,” states Mike Maxwell, president of Procacci. “Everyone is Most are complaining about the cost of goods, but they’re still buying. feeling it. It’s hard to write ads because of the variable in freight. Truck- We’re trying to work with our customers to make small adjustments.” ing costs have almost doubled over [the previous] year.” “You have to put up with the prices,” says Umberto Correa, manag- “Our freight costs have doubled,” agrees Chip Wiechec, president, er, International Supermarket, an independently owned single store in Hunter Bros., Inc., on the terminal market. “I feel sorry for the growers Ventnor City, NJ. “We must buy the same products as always because because they’re probably eating most of the costs.” we still need to have what our consumers want. Our consumers keep Increasing oil prices also affect other costs. Anthony Stea, CEO, buying because they need to eat.” Stea Bros., Inc., on the terminal market, explains, “Oil affects all ends Customers seem to be looking for less risk. “We see our customers of the business because it drives up pricing everywhere. Besides fuel, using us more and more as a warehouse,” reports Fadi Abi-Khattar, the increasing oil prices also affect other inputs, such as pesticides and vice-president and treasurer, Klinghoffer Brothers, Inc., on the terminal fertilizer. There is pressure all the way around.” market. “They pre-sell before they buy, so they don’t want to take any “Our expenses are up because of fuel, and our shippers’ costs are risks. There’s no bulk buying as in the past.” up, too,” reports Fred Penza, vice president, Pinto Brothers. “It’s harder “Customers are more careful about spending money,” explains John and harder to get the money out of the product. Additionally, fertilizer W. Waleski, president of John W. Waleski Produce, Inc., on the termi- and other inputs, such as boxes and plastics, cost more.” nal market. “They do without if it comes down to it. We’re seeing more Shippers and wholesalers alike are being pushed to the limit. “The and more price-oriented buyers. They still want quality, but price is a

SEPTEMBER 2008 • PRODUCE BUSINESS 83 PHILADELPHIA REGIONAL MARKET PROFILE

Marty Roth of Jimmy Storey of Joe Procacci of Ted Kean III of Jack Collotti, Jr. of Coosemans Philadelphia Quaker City Produce Co. Procacci Bros. Sales Corp. E.W. Kean Co. Collotti & Sons

greater issue.” save gas,” explains Mark Levin, owner, M. stores.” “Customers are buying but they are playing Levin & Co., Inc., on the terminal market. The effect of the fuel issue on FOB deals prices a little closer,” concurs John DiFeli- “There are two ways to go,” suggests may be drawing customers back to the mar- ciantonio, partner, Ryeco, Inc., on the terminal Hunter’s Wiechec. “One is to try to sell more ket. “When freight increases, it gets harder to market. “They’re not taking any risks. Our product. The other is to increase prices and buy FOB, so more buyers come back down to sales volume overall is not down, but it’s harder sell less product to fewer people. We’re just the market,” explains Pinto’s Fred Penza. to do the same numbers each week.” trying to help our customers as much as possi- “Our terminal market location is doing well “Some buyers may be more cautious because ble.” because a lot of guys who dabble in FOB can’t they’re wondering where it’s going to stop,” In some instances, the increasing trucking get covered now,” says Procacci’s Maxwell. reports Nardella’s Durante. “If the fuel issue rates are benefiting the market. “We’re all “They’re coming back to the market.” doesn’t stop, the produce pressure won’t stop.” experiencing higher prices,” explains Mark “The freight increase is helping us some- Capriotti, president of Capriotti Brothers, a what because buying FOB is getting more dif- Making Changes one-store retailer in Philadelphia. “However, ficult for multiple pick-ups,” states Klinghoffer’s Small changes may help some customers there is an increase in business on the market Abi-Khattar. “Getting trucks is more competi- and market vendors to adapt to increasing because customers are looking to save money, tive and truckers are more demanding.” costs. “We’ve noticed some customers who so they’re shopping around more [than in years shopped five days have now cut their shopping past]. They’re looking for the deals we can pro- Quality And Innovation days down in order to consolidate trips and vide them as opposed to the large chain The increased pressure in the marketplace 18 16 # # Reader Serv i ce Reader Serv i ce

84 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 48 PHILADELPHIA REGIONAL MARKET PROFILE

John Vena Dan Vena John Waleski of Mark Levin Rich Routhenstein of John Vena of John Vena John W. Waleski Produce of M. Levin & Co. of Coosemans Philadelphia

has meant a greater emphasis on quality. “The now is if product comes in bad, you’ve lost a lot job easier and builds rapport with customers,” retail marketplace is more competitive than of money in transportation.” says Hunter’s Wiechec. ever and one of the biggest ways our cus- “It costs $8,000 to get a load of lettuce Vendors on the market continue to find tomers can distinguish themselves is through here regardless of the quality,” explains Capri- unique ways to help their customers stay com- quality,” notes Tom Kovacevich, general man- otti of Capriotti Bros. “So you have to make petitive. “We look for the opportunity to intro- ager, T.M. Kovacevich (TMK), Philadelphia, sure the product is top quality and will be in duce aggressively priced organic items,” Inc., on the terminal market. “Quality is the great condition when it arrives.” explains TMK’s Kovacevich. “Organic has been driver for our sales.” The greater emphasis on quality and con- around long enough now that it’s possible to “Quality is more important now,” agrees sistency may mean greater focus on labels. get some very good pricing on some items.” Ryeco’s DiFeliciantonio. “In this economic cli- “We’ve seen a trend towards the increasing “Restaurants can take advantage of deals mate, customers are even more concerned.” importance of brands because they can stand we get on certain items and start offering an Breaking even on a load of produce is for quality and consistency,” according to Vena economical special instead of always having a increasingly complex. “Because prices are high, of John Vena. high-priced special — sort of like an upscale people need to get the highest-quality pro- Coosemans’ Roth further explains, “Con- blue-plate special,” suggests Vena. “The waiter duce,” explains Nardella’s Durante. “If the qual- sistency is the biggest reason people look for can tell customers how their supplier gave ity is not good and you can’t move it, you can’t brands, and consistency is especially important them a great deal on X product today and the back the freight out of it.” right now.” chef has come up with a wonderful dish and Levin of M. Levin adds, “The difference “If you have consistent labels, it makes our the cost is only $X. This will help keep people 19 81 # # Reader Serv i ce Reader Serv i ce

86 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 97 PHILADELPHIA REGIONAL MARKET PROFILE

going out to eat and will also show customers a markets. These are decades-long relationships creative solution the restaurant is providing for and we continue to do business here.” them in these more difficult economic times.” “Generally, our customers talk to us to find RISING Communication and information continue out what’s going on,” adds Ryeco’s DiFeli- as major benefits market vendors offer their ciantonio. “In times of crises, we’re able to LEADER customers. “The market is still all about rela- communicate accurate information to them, tionships and communication,” states Coose- which is of great value.” mans’ Roth. “It’s even more important in times like these. If you have the right relationship Going Local with your vendor or supplier, it can make a Supporting local farms is a growing trend in huge difference.” the Philadelphia foodservice and retail sectors. “Terminal markets are important for us,” “In Philadelphia, we have a very sophisticated states Taylor of Taylor Produce. “We ship restaurant industry and our chefs are interest- about 30 percent of our production to terminal ed in local product,” says Vena of John Vena.

Todd Penza, Pinto Brothers United Leadership Class 14

odd Penza, salesman with Pinto Bros., Inc., on the terminal market, is T a member of Leadership Class 14 of the United Fresh Produce Association (UFPA), Washington, D.C., and one of the few Philadelphia wholesalers to take part in the program. “I’m honored to have been chosen this year,” he reports. “There haven’t been many other members from Philadel- phia in the past.” Victoria Backer, UFPA’s senior vice president of member services, confirms, “There have been only three fellows from the Philadelphia area and about 30 whole- salers during the program’s history.” The UFPA program helps participants acquire a broader perspective of the indus- try. “I expect to gain a greater understand- ing of the industry from grower to final user because all these sectors are represented in the class,” according to Penza. “For exam- ple, we just completed a trip to California to see growing areas and have had some seminars on food safety, post-harvest, and public speaking.” “The leadership program is designed to expose participants to the many different elements of the produce industry and help them think beyond their daily business,” Backer states. “Learning about the com- plete supply chain often takes leadership fellows out of their comfort zone, but it also builds a better understanding and apprecia- tion for one another throughout all seg- ments of the business.” Networking is one of the other benefits 13

# Penza looks forward to. “There is a learning aspect to the program as well as the net- working benefits,” he says. “The relation- ships you make are a great part of going through this program.” pb Reader Serv i ce

88 PRODUCE BUSINESS • SEPTEMBER 2008 PHILADELPHIA REGIONAL MARKET PROFILE

“Interest in locally grown product is increas- using local product for years, but now, con- ing,” adds TMK’s Kovacevich. “It’s becoming sumer interest and demand are so high, they more and more important because of demand want to publicize their commitment to Penn- as well as cost factors. We’re big supporters of sylvania growers.” local producers. For example, we handle a lot of The closeness of the New Jersey makes its Eastern peaches, blueberries and apples.” product local for the Philly market. State pro- “Interest in Pennsylvania products has motion programs in New Jersey have helped grown across the board,” reports JoAnna Gre- develop awareness and demand for local prod- Mark Capriotti of Capriotti Brothers sham, agriculture marketing division chief for ucts. Charles M. Kuperus, secretary of the and Mickey Crawford of Ryeco the Pennsylvania Department of Agriculture New Jersey Department of Agriculture (PDA), Harrisburg, PA. “Consumers are (NJDA), Trenton, NJ, explains, “The use of demanding them and foodservice professionals Jersey Fresh advertising, combined with pursu- are seeking them out, causing distributors to ing press coverage from food editors and gen- respond. Many of these businesses have been eral-assignment reporters for the beginning of

Anthony Stea of Stea Bros. and Juanacho Vazquez, a buyer on the market

Joe Romonlini and Ed Barba of Storey’s Fruit & Produce

Jeff Moore and Pete Gabriel of M. Levin & Co. 79 #

Bill DeFelice

of M. Levin & Co. Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 89 PHILADELPHIA REGIONAL MARKET PROFILE

A LEAP OF FAITH: PHILLY’S NEW MARKET

fter a long, arduous road filled with with large trucks will disappointment, the building of the be able to back right A Philadelphia Regional Produce Termi- up into a sealed load- nal, Philadelphia, PA, is finally underway and ing dock.” the merchants are ready to make the leap into This state-of-the-art the future. “We’re excited because the new building will provide market will allow us all to take our business many new benefits to into the next generation,” explains George merchants and cus- Manos, president, T.M. Kovacevich (TMK), tomers. “The new mar- Philadelphia, Inc., on the terminal market. ket will be better for my Martin Roth, vice president, Coosemans business,” states Antho- Philadelphia, Inc., on the terminal market, ny Stea, CEO, Stea states, “Our new market will be especially Bros., Inc., on the ter- pertinent for the future generation of suppli- minal market. “I’ll have ers, vendors and buyers.” more room to put sam- The deal for the new market was signed ples out and it will all and completed in August and ground was bro- be at the right tempera- ken for construction. Sonny DiCrecchio, gener- ture. Given the food- al manager, Philadelphia Regional Produce safety environment Terminal, explains, “We have a guarantee from right now, the new mar- the builder for the new market to be completed ket will help us better

23 months from the time we signed the papers, manage the new regu- Photos courtesy of Trans Systems so we’re talking about September or October lations and increasing Artist’s renderings of the new Philadelphia Regional 2010. The new building will be a 650,000- requirements of the Produce Terminal. square-foot fully refrigerated market with a marketplace.” central concourse. The new site is only about “The temperature four miles from our current site, so it’s equal in control in the new market is going to be a chefs and other local buyers to shop. For the access to major roadways and to Center City great benefit to us,” adds John Durante, presi- future business, we need this new market.” Philadelphia, as where we are now.” dent, Nardella Inc., on the terminal market. Many merchants are looking forward to a The design and technology aspects of the “The shelf life on our product is going to new market despite apprehension about the new building are distinctive among terminal increase because of the temperature control.” unknown. “We’ve been in this market for 50 markets. “The new market will be the most “We’re looking forward to having more years,” says Mike Maxwell, Procacci CEO. efficient produce distribution center in the space, better refrigeration and a great facili- “It’s about time we get a new one. We still country,” reports John Vena Jr., president of ty,” explains John DiFeliciantonio, partner, have some issues to work out, but we’re John Vena, Inc., on the terminal market. “The Ryeco, Inc., on the terminal market. “The evolving to meet the needs of the future.” character of the market will change, but we’re new facility may help in getting contracts “It’s exciting yet we’re apprehensive too,” working hard to make sure the integral culture with certain organizations or facilities requir- notes Fred Penza, vice president, Pinto Bros., of the terminal market stays the same.” ing certifications we can’t currently obtain.” Inc., on the terminal market. “We need a According to DiCrecchio, “The new mar- Vendors feel the benefits and technology new market, but it’s a major expense. The ket will be very buyer friendly and focused on of the new market will draw additional cus- new market will be more customer friendly, safety for buyers and workers. The central con- tomers. “The new market will increase busi- affording more space and cold chain benefits course will have dedicated lanes for power ness for us,” predicts Joe Procacci of Procacci as well.” jacks and separate lanes for those with hand Brothers Sales Corp., on the terminal market. Jack Collotti, Jr., owner of Collotti & Sons, trucks. A guardrail will separate pedestrians “It’s going to have more room [than the old Inc., on the terminal market, concurs with from all this traffic. The layout will allow us to building], great technology and other conve- both the need and the hope. “We need a new host more buyer and educational groups. niences for our customers.” market because this one is just outdated,” he “All the areas will be refrigerated and the “We want to be able to deal with cus- says. “It’s hard to know what effect a new common areas will be maintained at 50° F,” tomers who don’t shop here now because market will have on business until it opens, adds DiCrecchio. “Individuals can choose they need additional certifications and cold- but we’re hoping for an increase.” whatever temperatures they want within their chain considerations,” explains Mark Levin, “The future in the new market seems unit. From a technology standpoint, the cen- owner of M. Levin & Co., Inc., on the termi- uncertain because there are a lot of tral services are key to this market and will nal market. “The new market will give us the unknowns,” states Fadi Abi-Khattar, vice- save our vendors money. There will be two chance to get to them.” president and treasurer, Klinghoffer Brothers, customer shelters on each side for customers Chip Wiechec, president, Hunter Bros. Inc., on the terminal market. “We’re appre- without large trucks. Customers will be pro- Inc., on the terminal market, adds, “The busi- hensive but also excited. It will be great to be tected from the weather and will be able to ness is sure to change in some ways. The in a brand-new facility where everything stage their product and load it. Customers new market will enhance the opportunity for works like it should.” pb

90 PRODUCE BUSINESS • SEPTEMBER 2008 PHILADELPHIA REGIONAL MARKET PROFILE

Mark Semerjian, Jim Baldwin, Nick Scintilla, Alan Taylor and Devin Taylor of Taylor Produce, John Durante and Richard Nardella Fadi Abi-Khattar of Klinghoffer Brothers, Steve Thorne of Taylor Produce of Nardella and Leonard Klinghoffer of Klinghoffer Brothers many market seasons, helps create an excite- Correa of International Supermarket prices. “Local growers are benefitting because ment and anticipation for those products in a agrees, noting, “Cost of transportation is giv- of higher prices due to the transportation diverse and very competitive marketplace.” ing local product an advantage. We’re seeing a costs,” says Levin of M. Levin. Increasing transportation costs have further lot more local produce on the market [than in “Local produce is of great quality and it can fueled the advantage of, and interest in, local the past].” be more cost-competitive as transportation produce. “Interest in local produce is always “Transportation costs are high and the costs increase,” reports Waleski of John W. high,” states Ryeco’s DiFeliciantonio. “This trend looks unfavorable, so people are looking Waleski. “However, the local deal is also sub- year, there are real advantages in freight if the to source locally,” adds NJDA’s Kuperus. “Pro- ject to supply and demand, so their prices also product quality is comparable to other produc- ducers in New Jersey are located near where see ups and downs with the fluctuations in tion areas.” people live, keeping their transportation costs transportation.” “This year, we’ll see even more success down and in turn, providing reasonably priced Higher FOBs are pushing more local prod- [than in years past] with local produce because fresh produce to consumers.” uct. “The interest in local is increasingly related of the increasing cost of bringing in product to FOB freight prices,” according to Nardella’s from farther away,” according to Capriotti of Local Benefits Durante. “We do a lot of Vermont and New Capriotti Brothers. Local growers may profit from increased York apples because of the more favorable 17 9 # # Reader Serv i ce Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 91 PHILADELPHIA REGIONAL MARKET PROFILE

FOBs. Additionally, local growers get a better addition, the growing season is only seven to is just as true for the local product. Here, buy- return for their product because of generally eight months, creating anticipation for these ers can see 10 different farms of Jersey straw- higher prices.” products as each new season begins.” berries at different price and quality points. “Current fuel costs seem to be keeping Local production also has environmental They have the ability to compare.” consumers close to home but they also add to benefits. “Sourcing locally ties nicely into “At a farmers market, buyers may not be the cost of production for farmers,” adds PDA’s reducing the carbon footprint,” according to able to see 150 different locally grown items, Gresham. “In times of economic challenge, Procacci’s Maxwell. “Of course, we very much but here at the Philly market, they can,” adds consumers may be more sensitive to the value all of our suppliers and production areas Hunter’s Wiechec. “There is a great selection impact they can have by supporting local grow- and each of them has a place in our business of products from more than 30 different grow- ers and the local economy.” during the year.” ers. Buyers can compare and pick out exactly Market vendors handle a large variety of “The more local you can buy, the less of a what they perceive as the best value.” local items and are willing to work with cus- carbon footprint there is,” notes Pinto’s Todd “The market offers the greatest variety of tomers to source more product. “Sometimes, Penza. “The new focus is on sustainability, local produce at a competitive price,” concurs the volume of locally grown items can be which goes beyond organic or conservation.” Todd Penza. “Additionally, the merchants here small,” explains Vena of John Vena. “This can “Interest in locally grown products is here have knowledge of what’s going on in all grow- make it difficult to source local product in a to stay and all indications show demand is ing areas. They know what’s coming, which is commercially feasible way. However, there are growing steadily,” reports Gresham. “The very valuable information to have.” plenty of items on the market produced in Pennsylvania Preferred program was introduced One trip to the market has additional cost- commercial volume and with great variety. You in January 2004 and research conducted then savings implications as well. “Shopping the ter- can buy the same blueberries here on the mar- indicated 93 percent of Pennsylvanians wanted minal market for local produce saves the cus- ket as you can in the Collingswood Farmers’ to buy and consume locally sourced products. tomer the cost of gas spent driving to the vari- Market [Collingswood, NJ].” We have seen and continue to see exponential ous farmers markets or farms in the area,” “Philadelphia-area wholesalers and distribu- growth in membership, which is directly related Nardella’s Durante points out. “Here, they can tors are great supporters of Jersey Fresh-brand- to consumer interest.” see a lot more sources all in one trip and be ed products,” reports NJDA’s Kuperus. able to compare quality and prices.” “Wholesalers and distributors adapt to the One-Stop Shopping Local growers find the market convenient needs of the marketplace and understand Jer- The market continues to offer buyers con- and competitive. “For growers, we offer an sey Fresh is highly marketable. There also is an venience. “Comparison of quality and variety easy outlet for their product,” says Stea of abundant supply during the growing season. In are easy here,” notes Stea of Stea Bros. “This Anthony Stea. “Top quality gets top dollar, but 20 117 # # Reader Serv i ce Reader Serv i ce

92 PRODUCE BUSINESS • SEPTEMBER 2008 PHILADELPHIA REGIONAL MARKET PROFILE

growers are able to transport their product eas- uct’s exposure. “If growers have a product ily to the Philadelphia Terminal Market. The which is coming, they can let us know and we market meets the high demand by food retail- can prepare to help them move whatever vol- ers for Jersey Fresh produce.” ume they have,” states Vena of John Vena. “It’s “For farmers to optimize profits, they try to all about communication, so we can match the sell as much as they can and as close to home as customers with the right products.” they can,” says Klinghoffer’s Abi-Khattar. “The “If growers produce a quality product, Philly market offers them a viable commercial they’ll have more chance to have people buy it John Birch of T.M. Kovacevich, outlet with a lot of exposure and decreased through the Philly market,” notes Hunter’s Jimmy Iovine, a buyer on the market, and Charlie Gangloff of T.M. Kovacevich transportation costs since they have to make Wiechec. “There’s a lot more activity here and only one trip here to sell all their product.” a diverse group of buyers. There’s a greater Local farmers can find an ally in the mer- chance to move variety and greater exposure chants on the market and increase their prod- for the product.” pb

Martha Vazquez, a buyer on the market, with her daughters Mireya and April

Richard Nardella of Nardella, Inc.., Michael Frazone, a buyer on the market, and Frank Stea of Stea Bros.

Chip Wiechec, Max Wiechec and Steven Wiechec of Hunter Bros.

John DiFeliciantonio, Mike Reilly, Jr., and Mike Reilly, Sr., of Ryeco other quality points will still have customers because of the volume we move and the vari- 131

ety of customers we serve.” # “The Philadelphia market is a conveniently located place for growers to sell their produce,” states NJDA’s Kuperus. “The major growing areas of New Jersey are within an hour of the

terminal. At a time when fuel prices are high, Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 93 PHILADELPHIA RETAIL PROFILE

Farm-Country Retailer Focuses On Produce Family-owned Stauffers of Kissel Hill delights shoppers with vast produce offerings.

BY JODEAN ROBBINS

eep in the heart of Lancaster farm country, Stauffers of the communities surrounding its business are two of the company’s Kissel Hill (SKH), based in Lititz, PA, provides everything important core commitments. “Our mission statement notes our desire one would expect of a store with consumers accustomed is to conduct a profitable business in a way that will bring glory to God,” to fresh, homemade products. With 76 years in business, states Stauffer. “We are committed to being a good neighbor through D SKH is a growing and innovative group of supermarket and community involvement and sound business practices.” garden centers that offer high-quality foods, garden, floral and nursery Produce is a high point of the SKH experience. “We started our busi- products in Southern Pennsylvania. The company is family owned and ness as a roadside produce stand 76 years ago and have continued holds fast to its motto, “We delight shoppers.” prominent focus on produce even as we expanded into other products,” Walking into the SKH in Lititz is certainly a delight. High ceilings reports Stauffer. “Our consumers know we have — and they have come and wide aisles create a spacious feel to the 5,600-square-foot produce to expect — the best produce in the area. Produce is one of our signa- department, which is strategically located in the very center of the ture departments.” store — an indication of the important role produce plays. Immaculate, Produce accounts for around 23 percent of SKH’s profits. “In our perfectly organized displays with attractive signage entice consumers to large-store format, it can contribute around 16 percent of total super- add items to their carts. market sales,” according to Stauffer. “In our small-store format, it’s SKH has three supermarkets/garden centers in Lancaster County close to 30 percent.” and five garden centers in the York and Harrisburg markets. All SKH SKH is committed not only to offering the best produce to its con- stores focus on perishables but vary in size from a small store format of sumers but also to empowering consumers with greater knowledge of 18,000 square feet to their largest at 78,800 square feet. SKH prides the products and even the sources. “We like to share the story of our itself on meeting the needs of, and enriching, its shopping community. produce with our consumers,” explains Stauffer. “A lot of our POP “We strive to delight shoppers by providing a clean and safe environ- efforts are directed at helping our consumers better understand the ment along with quality and freshness at reasonable prices,” explains products and where they come from.” Eric R. Stauffer, foods chief operating officer. “Our passion for offering SKH’s Home Grown program is one example of how it is sharing its impeccable service and a strong product-guarantee form the foundation story with consumers. Attractive and informative signs with a photo of of our business.” the grower give consumers a direct visual on where products come The high standards set by SKH are evident in the sincere and friend- from and a connection with the local grower. ly greeting of the man collecting carts in the parking lot, the cleanliness, The department is laid out with large island displays throughout as the pride of floor employees and the smiling cashier. Energizing employ- well as several linear displays showcasing product such as stone fruit in ees to help them reach full potential and enhancing the quality of life in its own boxes. It is bordered by a refrigerated case on one side. Color-

94 PRODUCE BUSINESS • SEPTEMBER 2008 PHILADELPHIA RETAIL PROFILE

ful, high-quality graphic banners to indicate dif- can husk their corn right there. “We realized Tennessee beans coming the next morning,” ferent sections of the department hang from this would be a service for our consumers, so relates Julian. “We were able to have those above. Clear, attractive signage clearly marks we did what was necessary to have these cans beans in our display the next afternoon.” all items with price, variety and country of ori- available,” says Stauffer. “This store alone can SKH has sourced from the market for more gin. SKH resets weekly to promote advertised sell a half a load of corn in a weekend, which than 50 years and it buys between 30 to 70 items and does a major seasonal reset three to shows our efforts are paying off.” percent of its produce there depending on the five times a year. Another example of SKH adding value for season. “We have a very long history and great SKH does not take produce lightly. Every consumers is the addition of fruit bowls. “We relationships there,” says Julian. “It’s always a detail of its impeccably clean, top-quality and started offering fresh-cut fruit in bowls and it’s valuable trip to see what we can find and to be well-organized department has a strategy and really taken off,” reports Stauffer. “We retail able to hand-pick our products.” is consistent. “The growers work very hard to them at $20 and can’t keep them in the store. “One recent example of how our relation- produce these products and they appreciate They’re great for lunches, parties, the office, ships translate into business is the grape pro- the hard work we put into selling it,” according the kids’ school, picnics and so many other motion we did,” explains Julian. “We worked to Stauffer. events. We still offer trays as well, but the with TMK [T.M. Kovacevich Philadelphia, Inc., bowls are the most popular.” on the terminal market] to do a real hot price Adding Value Organics is a growing area for SKH. “This for an ad on grapes and were able to move SKH heavily emphasizes value-added prod- category gives the store an opportunity to take close to half a load. Produce is all about rela- ucts in the produce department and has a wide products and see what we can do to build it,” tionships and we really value ours.” variety of its own fresh-cut items. “We make explains David Julian, SKH produce buyer. SKH also has direct relationships with some our own salsa and guacamole, which have SKH takes a unique approach, merchandis- shippers and brokers, some local grower part- been very popular items for us,” reports Stauf- ing organics in related groups. It displays relat- nerships and with Four Seasons Produce, Inc., fer. “Our products are all natural with no ed organic items such as tomatoes, avocados Ephrata, PA, which supplies organics and preservatives. Our consumers come looking and garlic together near similar conventional bananas. “The percentage we source from our for fresh-cut done by the store.” items. “We’re still experimenting with the best different suppliers varies during the year,” says The first eight to 10 linear feet of the refrig- approach,” reports Julian. “For now, we feel Julian. “For example, during the summer, when erated case are dedicated to the prepared, this gives our consumers an easy way to find local production is peaking, we can source more fresh-cut items, such as the salsas and gua- what they need while still allowing organics to directly from our local grower relationships.” camole. The store has four employees putting be visible to conventional shoppers as well.” “Our widespread consumer base means we in about 100 to 120 hours per week on the offer something for everyone,” explains Julian. fresh-cut and prepared produce items. “We’re The Heart Of The Source “In turn, it means we have a lot of opportunity capable of moving a good amount of fresh- SKH’s largest supplier is the Philadelphia for sourcing from many different places. cut,” notes Stauffer. “In the 2-day period over Regional Produce Terminal, Philadelphia, PA, Between the Philly market and our direct rela- Christmas, we do around 380 fruit and veg- where it pulls two to three loads a week and tionships, we have a great pool of products to etable trays.” average around $2 million annually in purchas- fill our demands.” The store looks to add value for consumers es. “The market gives us a good source very in many diverse ways. “We differentiate our- close to our marketplace,” says Stauffer. “Addi- Reaching Out selves by doing above and beyond what other tionally, we can look at the product before we SKH reaches out to the community stores do,”he reports. buy it. We have strong relationships with peo- through promotion and charity and focuses on One example is its corn display. SKH offers ple there, and there are flexible hours to buy adequately training and motivating its employ- cleaned, washed and wrapped corn with sign- and load.” ees. Promotion is accomplished through a vari- age indicating it as such for shoppers in addition “One time, we couldn’t find any beans ety of outlets, including weekly circulars and to the bulk display. At the bulk display, it has meeting our specs on the market, but one of billboard/signage outside the store. It does both two large, clean garbage cans so consumers our vendors there told us he had some great passive and staffed sampling in the department

SEPTEMBER 2008 • PRODUCE BUSINESS 95 PHILADELPHIA RETAIL PROFILE

and has an everyday-low-price commitment. turnover with our employees than the indus- “We call our concept Stauffers Advantage try,” reports Stauffer. “This really gives us the Saving Price,” according to Stauffer. advantage of having a seasoned employee Stauffers of Store events are another way SKH turns base as well as having those experienced Kissel Hill promotion into fun for consumers. “We do a employees train our new hires.” kid’s day where we provide crafts, kid’s tattoos, Produce employees must complete several 1050 Lititz Pike Sunday free hot dogs and such,” he explains. “The kids hours of customer-service training as well as Lititz, PA 17543 7:00 AM to 6:00 PM have a great time.” attend weekly 10-minute meetings with the Tel: 717-627-7654 Garden Center hours: Supermarket hours: Monday - Friday Additionally, SKH strives to be a good department manager. The training strives to Monday - Sunday 7:00 AM to 9:00 PM neighbor by donating cash and product to create 2-way communication between 7:00 AM to 11:00 PM Saturday many non-profit organizations, such as the employees and consumers. “Our shoppers will Garden Center hours: 7:00 AM to 8:00 PM Children’s Miracle Network and the United be served by friendly and knowledgeable Monday - Friday Sunday Way. SKH has an internal marketing depart- employees,” according to Stauffer. “We listen 7:00 AM to 9:00 PM 8:00 AM to 6:00 PM ment that produces all the promotional materi- to our shoppers and use their feedback to cre- Saturday als and signs used by the store. High-quality ate a truly unique shopping experience.” 7:00 AM to 8:00 PM 301 Rohrerstown Road Sunday Lancaster, PA 17603 graphics and consistent POS materials are a “With food safety and other issues, we 8:00 AM to 6:00 PM Tel: 717-397-4717 result of this control. have an opportunity to educate our consumers Monday - Saturday Employees are a highly valued asset at so they can understand and feel good about OTHER LOCATIONS 7:00 AM to 9:00 PM SKH, which invests in both formal and infor- what they’re eating,” explains Julian. “With 1850 Oregon Pike Sunday 7:00 AM to 8 PM mal training. “The well-being of Stauffers the summer tomato incident, we took immedi- Lancaster, PA 17601 Garden Center hours: employees is vital to our success,” states Stauf- ate action and educated our employees so they Tel: 717-569-2688 Monday - Friday fer. “Our desire is to positively impact the could in turn educate our consumers. The Supermarket hours: 7:00 AM to 9:00 PM Monday - Friday Saturday health, happiness and personal development of stores received a daily memo and we had 7:00 AM to 9:00 PM 7:00 AM to 8:00 PM our employees.” other communication with employees Saturday Sunday The success of this goal is evidenced in throughout the day. We didn’t see any adverse 7:00 AM to 8:00 PM 8:00 AM to 6:00 PM pleasant employee attitudes and a low rate of reaction on the part of our consumers buying turnover — one of the supermarket industry’s tomatoes. We work hard to instill their confi- greatest thorns. “We have a much lower dence in us and our products.” pb 94 107 # # Reader Serv i ce Reader Serv i ce

96 PRODUCE BUSINESS • SEPTEMBER 2008 PHILADELPHIA RESTAURANT PROFILE

Acclaimed Chef Photos courtesy of Jason Varney Earns His Reputation

The menu changes with the seasons at James, known for its focus on local produce.

BY JODEAN ROBBINS

n an obscure block not Produce is a key element in Burke’s cuisine and close to 60 percent far from Philadelphia’s of the James menu is produce with the remainder either protein or Italian market, sits pasta. The restaurateurs are serious about communicating to their cus- James, a surprisingly tomers through flavor. Specialty cocktails using fresh produce as a base O chic, inventive and ingredient hint at what lies ahead. acclaimed restaurant. Its crisp, mod- Scallop with Asparagus comes with asparagus served three ways on ern, yet comfortable feel and unique the plate. “Because it’s at the height of the season, we felt customers décor parallel the restaurant’s philoso- should experience the flavor in different ways,” according to Kristina phy toward food. “Our mission at Burke. “So we did a purée, a sauté with lemon and a raw salad.” James is to serve the highest-quality food paired with thoughtfully cho- Chilled Cucumber and Avocado Soup with Salt-Roasted Shrimp and sen wines,” explains Kristina Burke, co-owner and general manager. Chili Oil boasts beautiful, fragrant avocado chunks and the cucumber “Our kitchen is devoted to finding the finest ingredients and treating broth is served tableside, adding flair to the dish. Salt-Roasted Local them with the utmost respect. The menu focuses on local seasonal pro- Beets are served with goat-cheese foam and shaved black walnuts. duce, humanely raised meats, wild seafood and artisan cheeses.” The Burkes’ commitment to produce does not wane as their menu Kristina and her husband Jim Burke, co-owner and executive chef, moves to the pasta course. Risi e Bisi takes a traditional Italian rice and own the 50-seat restaurant , which grosses about $100,000 per month. peas dish, enhances the fresh pea flavor and adds a modern twist — Chef Burke is gaining fame almost daily; he was recently chosen as one bacon ice cream. Cavatelli is served with wilted greens and lemon froth of Food & Wine magazine’s Best New Chefs in its July 2008 issue. and Sweet Herb Agnolotti combines pasta with porcini, blueberries and The entire restaurant, down to the design and décor, showcases lemon thyme. Yet another example of Burke’s flair for the unique comes Chef Burke’s food. “We wanted the interior to have the same philoso- in the Tagliatelle served with duck ragu and orange and topped tableside phy as our kitchen so there is one cohesive feel throughout the restau- with fresh-shaved chocolate. rant,” reports Kristina Burke. “There are no tablecloths because we The entrées also showcase produce. Halibut is stuffed with Swiss wanted the stemware to stand out. We wanted the weight of the sil- chard and edible flowers. John Dory is served over fresh fava beans. verware to be noticed. We wanted a different plate for each dish to Local lamb is partnered with crushed English peas and morels, and show the artistry of each dish.” Poularde is accompanied by buttered Swiss chard, chanterelle mush- Jim Burke’s sophisticated, clean northern-Italian cuisine emphasizes rooms and apricot-infused pan sauce. creative combinations, bringing out the natural flavors of ingredients. Pastry chef Kristin Wood ups the ante at dessert with unusual com- “We opened the restaurant because we wanted to have our own vision binations, such as Chocolate Marquise served over a house-made rose- of our craft,” he says. “We wanted to be able to be creative on a daily mary brioche and pine-nut praline. Poached Local Rhubarb is served basis. We wanted to show some new techniques as well.” with an almond cream cake and honey ice cream, and Goat Cheese

SEPTEMBER 2008 • PRODUCE BUSINESS 97 PHILADELPHIA RESTAURANT PROFILE

Semifreddo with Lemon-Thyme Shortbread Vince Alberici at The Marker restaurant in the features Riesling-poached apricots. House- Adam’s Mark Hotel in Philadelphia. Burke’s made ice creams are available in fresh-fruit fla- infatuation with cooking only intensified when vors, including wild black raspberry, sour cher- he began working at one of Philadelphia’s most ry and lemon, as well as little-known yet unbe- highly awarded restaurants, Vetri. During the lievably tasty flavors, such as bacon, beer and two years he worked under nationally honey. renowned chef Mark Vetri, he was afforded much freedom in the kitchen and cultivated an Local Focus interest in the flavors of authentic Italian cui- In tune with a growing trend in major sine. From there, he left to pursue his dream of restaurant markets, James takes local procure- cooking in Italy, where he had the honor of ment to a whole new level. The couple derives working with Chef Paolo Frosio in Ristorante their motivation in great part from local pro- Frosio, a Michelin-star restaurant located in duction. “The local farms really drive us,” Alme, a small town outside of Bergamo, Italy. states Kristina Burke. “We strongly support There he learned the difficult task of exalting Pennsylvania associations for sustainable agri- the flavors of a few pristine ingredients in a dish culture, local farmers and wine educators rather than losing the integrity of those ingredi- because these suppliers maintain a standard of ents in an overpowering jumble. Upon return- excellence in keeping with our own.” The ing to the United States, he became a chef at restaurant highlights some local vendors on the Vivo Enoteca in Wayne, PA, and later the menu, principally protein suppliers. executive chef at Steven Starr’s Angelina in The couple spends around $800 weekly on downtown Philadelphia. produce and notes the quality of the ingredients Kristina Burke has held various positions at is vital. “When you’re cooking on the level we a number of the city’s finest restaurants,

50 hope people recognize us for, we must have pris- including Pasion!, Vetri, Striped Bass and Miel

# tine ingredients,” states Kristina Burke. “We’re Patisserie. Her love for the culinary world also trying to enhance the true flavor not change it.” led her to Italy where she enthusiastically “Getting the most pristine ingredients is explored the land, culture and people for two important to us and we try not to alter them years. In January 2006, she became the direc- too much,” says Jim Burke. “We want our cus- tor of sales and business development for

Reader Serv i ce tomers to remember what an asparagus tastes Charles Roman Catering. The Burkes opened like in season. Purity and flavor are key.” James in late 2006 to continue growing their Produce is sourced from various farms and shared passion for the food industry. vendors depending on seasonality. “We get a James draws from a broad customer demo- lot from Green Meadow Farm in Gap, PA, graphic. “We see a very nice mix of customers, where we also get eggs, milk and yogurt,” she including young people who are sophisticated shares. “We also source from Farmart in and interested in food and who make it a priori- Wayne, PA, and Lancaster Farm Fresh Co-op ty to budget and come to the restaurant, as in Leola, PA.” well as affluent customers who appreciate the Because James uses only fresh, locally stemware and wine list,” explains Kristina grown ingredients, the menu changes with the Burke. “We also have a menu at the bar as an seasons, which is about every four to six everyday menu and a happy hour attracting the weeks. “The growing season in Pennsylvania is young local crowd. We get a lot of people who shorter than most and we’re really committed drive here from New York as well as some from to buying local, so there are no tomatoes or [Washington] D.C. or even San Francisco.” pb asparagus on our menu unless we can get them locally,”reports Kristina Burke. The winter James menu includes cabbage, parsnips and rutabagas. “We use a lot of veg- James etables people shy away from,” says Kristina Burke. “We also use chestnuts, leeks, cauli- flower, mustard greens and spinach, which 824 S. Eighth St. can winter over in a dark shed.” Philadelphia, PA 19147 Tel: 215-629-4980 A Passion For Flavor www.jameson8th.com The Burkes exude a passion for their food 46

# and their business. “It’s important to us that Hours: the producers of our ingredients love what Monday - Thursday they do because we love what we do and we 5:00 PM to 10:00 PM want it to shine through,” she explains. Friday - Saturday Jim Burke’s passion for cooking began over 5:00 PM to 11:00 PM

Reader Serv i ce a decade ago while working with Master Chef

98 PRODUCE BUSINESS • SEPTEMBER 2008 PBH Campaign Aids Juices Logo helps retailers promote a healthful juice message to consumers.

BY KIMBERLY RINKER

When the Produce For Better Health Founda- Atlanta, GA] stringent guidelines before we allow tion (PBH), Wilmington, DE, created the the logo to appear on its packaging.” Fruits & Veggies — More Matters campaign last [EDITOR’SNOTE: PBH and CDC partnered with year, more than fresh produce suppliers many other organizations to launch the initiative. stood to benefit. The CDC Web site promotes Fruits & Veggies — More Matters.] Today, many fresh juices sold in the produce Mike O’Brien, vice president of produce and flo- department are carrying the Fruits & Veggies — ral for Schnucks, a St. Louis, MO-based chain with More Matters logo as a way to let consumers know more than 100 stores, says the company is a strong they fit into a healthful diet. advocate of the program. “I tell all of our suppliers To carry the Fruits & Veggies — More Matters that they need to put the Fruits & Veggies — More logo, products must meet strict nutritional guide- Matters logos on their products. Using the logo is a lines for total fat, saturated fat, trans-fat, added great way for suppliers and retailers to lend credi- sugar, fiber and sodium content. “All forms of fruits bility to a juice or any product. It’s a great tool to and vegetables, including fresh, frozen, canned, use in promoting a healthful message to the con- dried and 100 percent juices, are included under sumer,” he explains. the Fruits & Veggies — More Matters produce and “Of course, we all want to sell more product as recipe criteria,” explains Kristen Stevens, PBH we’re all in business, but we’re also concerned with senior vice-president. “All fruit- and vegetable-juice obesity issues in this country as well. Fruits & Veg- products must be 100 percent juice. The sodium gies — More Matters is a good, all-around campaign,” content must be less than or equal to 70 milligrams O’Brien stresses. of sodium per 4-ounce serving and [they can] con- In April 2008, Schnucks became the first retailer tain no added fat or sugar.” to garner PBH’s Supermarket Retail Role Model “When you see the Fruits & Veggies — More Mat- honors for its support of the Fruits & Veggies — More ters logo, it makes purchasing decisions easier,” Matters health initiative. according to Elizabeth Pivonka, PhD, RD, PBH pres- “We’re focusing on transitioning from the 5-A- ident. “We evaluate each product’s ingredients and Day program to a 9- or 11-a-day initiative within our nutrition panel to ensure that it meets CDC’s [Cen- stores,” O’Brien explains. “We’ve got signage within ters for Disease Control and Prevention (CDC), our stores, links on our Web site and internal pro- motions that incorporate the Fruits & Veggies — More Matters mentality. This is a corporate cam- paign that started at the top.” Other retailers have jumped on the bandwagon and are incorporating the Fruits & Veggies — More Matters logo on their private-label products, includ- ing the Great Atlantic & Pacific Tea Co. (A&P), based in Montvale, NJ; The Kroger Co., based in Cincinnati, OH; Meijer, based in Walker, MI; Publix Super Markets, Inc., based in Lakeland, FL; Safe- way, Inc., based in Pleasanton, CA; SuperValu, based in Eden Prairie, MN; and Wal-Mart Stores, Inc., based in Bentonville, AR. Brand name prod- ucts from Welch’s and Sunkist also prominently dis- play the logo on their products. The Orchid Island Juice Company, Ft. Pierce, FL, recently began sporting the logo on its product line that includes orange, grapefruit, lime, tangerine and lemon juices. “We feel the Fruits & Veggies —

SEPTEMBER 2008 • PRODUCE BUSINESS 99 The PBH logo is available for use on juice packaging.

More Matters logo is a great educational tool,” explains Sarah Hogan-Lamm, marketing executive. “It’s the perfect way to encourage children to drink more healthfully.” A significant glitch in introducing the Fruits & Veggies — More Matters campaign to juice consumers is its as yet rather limited exposure. A number of suppliers contacted for this article had never heard of the cam- paign or the logo, and others felt their cur- rent packaging would not have the space to incorporate another logo. Allison Lee, director of marketing, Blue Lake Citrus Products, Inc., Winter Haven, FL, was one such supplier. “This is news to me and something we definitely need to investigate further. Our products would defi- nitely fit into the Fruits & Veggies — More Matters criteria, as they’re USDA-organic and kosher certified, but we haven’t integrated it into our packaging yet because we didn’t know about it. We already have a number of logos on our products, including the Fresh From Florida and Florida Department of Agriculture [based in Tallahassee, FL] logos.” Although he hadn’t heard about the Fruits & Veggies — More Matters campaign, Dan Petry, vice president of sales, Lambeth Groves Juice Company, based in Vero Beach, FL, would like to learn more about it. “I would certainly consider [using the logo]. Anything that would help alert consumers to our products makes sense.” Lambeth Groves is owned and managed by United Juice Companies of America, Inc., Vero Beach, FL. PBH sends out a monthly e-mail newslet- ter that includes information on Fruits & Veggies — More Matters program. “We’ve also created a tool kit around the brand geared toward growers, shippers and processors with information about the program that helps them easily incorporate it into their 98

# business,” explains Stevens.

SPACE AND COST LIMITATIONS Matt McLean, CEO, Uncle Matt’s Fresh,

Reader Serv i ce Inc., Clermont, FL, says space limitations

100 PRODUCE BUSINESS • SEPTEMBER 2008 and cost to incorporate another logo onto his product labels make him hesitant to consid- Multi-Vitamin er Fruits & Veggies — More Matters. “Our products certainly qualify, but we just don’t Juice Line Launched have any extra room for another label at this time,” McLean says. “Right now, we’re like everyone else — we’re trying to cut costs ambeth Groves Juice Company, Vero Beach, FL, recently launched 22, a new line of whenever we can. The Fruits & Veggies — fresh juices containing 12 exotic juices and 10 essential vitamins. Currently available in More Matters logo is a great seal to incorpo- L two flavors, mango and berry, 22 will be showcased at the Produce Marketing Associa- rate onto a product, but for us right now, it’s tion (PMA) Fresh Summit, Oct. 24-27, in Orlando, FL. “We will be introducing a third flavor, just an added cost. citrus, very soon,” notes Dan Petry, vice president of sales. Lambeth Groves is owned and “We already have a USDA organic-certifi- managed by United Juice Companies of America, Inc., a Vero Beach, FL-based team of cation label, a kosher label and a please senior-level executives with unique expertise in the citrus products and beverage industy. recycle label,” he continues. “Our front and Lambeth saw a void in the juice market for a multi-vitamin product containing more than back labels are rather small, and there’s not just one or two vitamins. “We were in Europe and the No. 1 selling juice in Europe was a lot of excess room there. If PBH would pay orange juice, No. 2 was grape and No. 3 was multi-vitamin juice. We looked for something for the plate changes for us to redo the similar to it [in the United States] and never found something this encompassing.” pb labels, I’d consider adding the Fruits & Veg- gies — More Matters logo. Space, however, is still a major concern as our 59-ounce con- tainers just don’t leave a lot of room.” in the United States, can’t incorporate the PBH’s criteria, Stevens says suppliers and PBH’s Stevens understands suppliers’ Fruits & Veggies — More Matters logo, retailers can request signage that let’s con- concerns with space and stresses the value because its products don’t meet the criteria sumers know they support the Fruits & Veg- behind the program. “It’s the only national created by PBH and CDC. “Our products are gies — More Matters message. “We want to public and private sole message about fruits very popular in the North Atlantic and mid- help everyone in the industry get the mes- and vegetables. If consumers see the logo, Atlantic states, but we can’t use the logo sage out,” she explains. they may be more likely to buy the product because we use a fructose sweetener in our As Americans strive for more healthful with the logo versus a competitor’s product products,” explains Allyn Brown III, presi- options in a society plagued with obesity that doesn’t have the logo.” dent. “But I agree that the logo does present issues, having the Fruits & Veggies — More Preston, CT-based Maple Lane Farms, one a positive image to the public.” Matters logo on juices provides consumers of the top producers of black currant juices Even if specific products don’t meet with an assured standard of excellence. pb How To Make Things Grow Whatever your role in the produce industry, the key to a blossoming bottom line is knowledge. About major trends and developments, and the people behind them.... About new sales opportunities around the world.... New packaging and transportation technology.... New ideas in marketing and promotion.... New retail strategies.... New equipment and services.... New techniques for managing individual busi- nesses, and their personnel, more efficiently.

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SEPTEMBER 2008 • PRODUCE BUSINESS 103 Fuel And Sustainability Impact Transportation Industry Companies throughout the supply chain are looking for cleaner and greener means to move fruits and vegetables.

BY DUANE CRAIG peas from Guatemala, are now shipped 99 percent Rising fuel costs and sustainability pressures of the time via ocean when at one time they were indicate the days of cheap, abundant pro- exclusively moved by air. The biggest trend we duce in every corner of the world and in have seen this shift in is with Peruvian asparagus, every month of the year may be numbered. which was also once strictly air arrivals and is now moving towards ocean containers.” Tony Horzen, president of High Street Logistics, There is also some shift to other forms of trans- Inc., San Luis Obispo, CA, is surprised at how ship- portation for fresh fruits and vegetables on the con- pers are managing with load transportation costs tinent. Railex, Riverhead, NY, offers fuel savings of running $8,000 to $9,000. “It makes you wonder 5 million gallons and a greenhouse gas emissions how high that can go before it gets to the point reduction of 85,000 metric tons when compared to where people just say we can’t ship that. That is a moving the same amount of produce across the little worrisome.” country via truck, according to Paul Esposito, vice “We’re at 44.5 percent fuel surcharge this week president of the Northeastern region and corporate [July 6],” reports Stephen Armellini, vice president logistics. Railex is currently building a new facility of sales, Armellini Industries, Inc., Palm City, FL. “I in Delano, CA, and adding a train that will run from clearly would have to close my doors if we weren’t there to Rotterdam, NY. It is also adding five railcar able to get that fuel surcharge. It’s our lifeblood at spots to its facilities in New York. the moment.” Kenny Lund, vice president of support opera- Fuel costs are causing the modes of transport for tions for Allen Lund Company, La Cañada, CA, perishables imports and exports to shift. Ana M. admits his company is looking at hybrids but ques- Ramos, a licensed customs broker with The Perish- tions the potential gains on the highway. “Once you able Specialist, Inc., Doral, FL-based nationwide get on the highway, you’re still using the same customs brokers, says fuel costs have been an ongo- amount of energy to push freight from one point to ing issue for importers and exporters for several another, but if you’re in the city, it’s great.” years. Air space from the largest exporting coun- That’s exactly what those in urban centers pre- tries has been a challenge and she thinks the shift dict as one trend in transport. “To me, the next toward more ocean transportation will continue. thing that you will see coming into trucking, at “We already see that commodities, such as snow least for the wholesale produce businesses in New York City, is going to be an increasing use of hybrid trucks,” reports Matthew D’Arrigo, vice president, D’Arrigo Brothers Co. of New York, Inc., Bronx, NY. “Somewhere between now and five years from now, it will no longer be a new story.” Trucks are not the only application for this tech- nology, Esposito says Railex is looking to switch to hybrid locomotives in the next few years. Other issues relative to sustainability and the environment don’t always feel like a net win. Armellini, whose company specializes in perish- able flowers transport, is not sure about the trade- offs. “We just changed our trucks to the new after- burner, which is much better for the pollution

104 PRODUCE BUSINESS • SEPTEMBER 2008 ing the available pool of haulers. “It’s pushed tough times. The market will always adjust SmartWay Transport some of the independent owner-operators out — it just couldn’t adjust that fast.” of business because they haven’t been able to Many shippers and logistic firms are see- Program get their prices up in the non-peak season,” ing a decline in available motor carrier he adds. “That’s creating a shortage of good capacity, explains Ralph Massey, certified he Green Supply Chain Study, recently drivers and good carriers to move produce.” transport broker and vice president of the conducted by Computer Sciences “We’ve seen some of the carriers we’ve produce division, Trinity Transport, Inc., T Corp. (CSC), Falls Church, VA; Manhat- worked with for years go by the wayside,” Seaford, DE. “The rising costs of operating a tan Associates, Inc., Atlanta, GA; Interna- notes Lund of Allen Lund. “Fuel prices went trucking company have forced many owner- tional Business Machines Corp. (IBM), up so fast that many of the fuel surcharges operators to seek other careers — parking or Armonk, NY; and Supply Chain Manage- that had been negotiated couldn’t keep up. selling their rigs. This creates a driver short- ment Review Magazine (SCMRM), Waltham, We did everything we could to help. We age, and even the larger fleets are cutting MA, showed that most supply chain and accelerated our payments, and advanced a back on the lanes they service or number of logistics executives are involved in at least lot to the carriers to help them get through loads they can accept. To combat this trend, one sustainability-related group. More than those tough times. Well, they continue to be Trinity is continually working to develop a third are involved with the U.S. Environ- mental Protection Agency (EPA)’s SmartWay Transport Program. The program aims to reduce carbon diox- ide emissions to between 33 and 66 million metric tons per year and nitrogen oxide by up to 200,000 tons annually. Companies partner with EPA and commit to measure and improve their freight operations. They use EPA-developed tools that quantify the benefits of certain fuel-saving strategies. “We’re in the process of becoming a part- ner and look forward to working with EPA to increase the number of our loads moved with SmartWay carriers and also to spread awareness to our non-SmartWay providers on the benefits of joining the alliance,” explains Ralph Massey, certified transport broker and vice president of the produce division, Trinity Transport, Inc., Seaford, DE. Railex, Riverhead, NY, has been a Smart- Way partner since March 2007, reports Paul Esposito, vice president of the Northeastern region and corporate logistics. “Many retail- ers are looking for that SmartWay designa- tion as preferred carriers into their stores. Foodservice outlets are looking for the same. It’s what a lot of logistics departments are pushing toward. We also prefer to use SmartWay Transport truck partners to do our inbound and outbound hauls.” pb going into the sky. Unfortunately, I’m not sure it’s a total win since we went from almost 6.5 miles a gallon down to 5.1 miles a gallon.” Stringent California requirements reduce his trucks’ miles per gallon to 4.8. High Street’s Horzen agrees. “You’ve got all the new smog controls on the trucks, which I think are good for the environment but not so good for freight rates. They have 23

increased the costs of the trucks by $20,000 # and there are additional maintenance costs to keep those things maintained every year.” For those in the transport industry who rely wholly or partially on other people who

have trucks, all the recent factors are reduc- Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 105 relationships with our contracted carriers. loaded and having as few deadhead miles as By helping our providers earn a good profit, possible,” reports Horzen. “We’ve cut the providing fast payments and awarding engines back a bit so they get better mileage.” incentives, such as fuel cards for top carri- “We look at ourselves as purveyors of the ers, Trinity can rely on the strength of our information of where the loads are,” states carrier base to overcome this hurdle.” Lund, “so that helps keep the deadhead High Street’s Horzen notes trucking com- miles down and that, in and of itself, is a panies getting into warehousing and consoli- green practice. Our larger consumers want dating as a means to pick up additional rev- to be partners and help with the efficiency. enue streams. We’re seeing more shippers responding to phrases like carrier-friendly freight and INCREASING EFFICIENCIES making it easier for the carriers by making While rail offers increased efficiency, it areas with auxiliary power units available so has a way to go before it can offer relief on a that they don’t have to idle in the yards. large scale. “We haven’t seen a significant We’re really working harder with the ship- shift to rail,” notes Allen Lund’s Lund. “Nine- pers to be efficient with their loads.” ty-nine percent of produce goes on trucks. In late 2007, Trinity opened Trinity Port Even if you double what goes on rail, you’re Services near the Port of Wilmington, DE, still only handling 2 percent of the total.” says Massey. “Moving more than 2.5 million “Fuel prices hurt the entire industry,” pounds of bananas per week, the facility pro- reports Railex’s Esposito. “People are going to vides crossdock, shagging, storage and other be looking for better ways to get products services to our produce clients. In an effort across the country and I believe Railex fits to reduce our imprint on the environment, that model. I also think you’re going to have we’re beginning the process of converting to some pushes into consuming locally grown electric power instead of diesel fuel to run

124 or regionally grown produce. We’ll see if con- the reefer units on the containers and trail- # sumers will accept that.” ers in our yard. By investing in plug-in units, Much of the sustainable operations focus we’re able to reduce our dependence on is on increased efficiencies in operations. diesel, the emissions into the atmosphere “We’re going to be adding solar in our ware- and the noise pollution for the surrounding houses, and we’re also keeping our trucks community.” pb Reader Serv i ce 70 36 # # Reader Serv i ce Reader Serv i ce

106 PRODUCE BUSINESS • SEPTEMBER 2008 Fresh Summit International Convention & Exposition Orlando, Florida U.S.A. October 24-27, 2008

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FLORAL AISLE BY AISLE SECTION BEGINS ON PAGE 120

SEPTEMBER 2008 • PRODUCE BUSINESS 107 Reader Service # 34 AISLE 100 stone fruit.We are committedtopro- Northwest apples,pears,cherries,and Sage isaleadinggrower/shipper of Yakima, WA SAGE FRUITCOMPANY, LLC Booth #269 Key Central view salesresource planningmodulefor RFBII CustomSolutionsoffers awide- Greencastle, PA SOLUTIONS PA, INC. RFBII CUSTOM Grand Rapids,MI SOLUTIONS, INC. RFBII CUSTOM Booth #337 inventories andpricesononescreen. their projected incomingproduct, sales, grapes andcitrus. stone fruit,table ourJustRipe to inspired OldElPasoFresh lineup Everything from ourHispanic our completeproduce lineup. Z&S Fresh, Inc.isproud toshowcase Fresno, CA ZS FRESH,INC. Booth #121 Booth #188 City ofIndustry, CA TRIUNFO-MEX, INC. designed EC204andEC111trays. introducing newly are to 90days.We composts —itwillbreak downinup cals anddyessuitableforhome sustainable resource. Free ofchemi- palm fiber, arenewable andcertified Earthcyle Packagingismadefrom Vancouver, BC,Canada PACKAGING LTD. EARTHCYLE Booth #414 marketing programs ! momentum. Checkoutthemultiple elodeon programs continuebuilding sales atretail. OurNASCARandNick- vative marketingprograms todrive continues tointroduce newandinno- quality apples,pearsandcherries, Borton &Sons,grower/shipper of Yakima, WA BORTON &SONS,INC. Booth #441 viding “AnExceptionalEating and grow salesofourcustomers. complement ourqualityproducts of vitaminC. and promotional programs to source We haveextensivemarketing with longshelflife.Agood Experience” ineachboxoffruit. retail priceof59¢to69¢.All impulse itemwithasuggested items are nowKosher. Great mango beingthenewest.All Now ninegreat flavors,with ® that allowsuserstosee

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Booth #709 Booth #731 Booth #752 Booth #758 CHEP COPEXEU KEYES FIBRE CORP. POTTER INC Orlando, FL ASOCIACIÓN CIVIL Wenatchee, WA Bryan, OH CHEP is the global leader in pallet Buenos Aires, Argentina Keyes is a leading provider of molded Potter’s pre-made fruit pooling services. With an unprece- Come to our booth and make your fiber packaging for the fruit, egg and and gourmet gift dented combination of cost reduc- off-season produce business by wine industries. Our sustainable baskets pair healthful, conventional tion, size, scale, superior technology meeting growers and exporters of practices have made environmental fruits with delectable gourmet snacks and global reach, CHEP issues, col- fresh pears, apples, blueberries and and economic for the perfect ready-to-sell gift. For lects, conditions and reissues more cherries from Argentina. sense for over labor- and space-savings, our half than 265 million pallets, helping man- 50 years. pallet shipper display is a win-win for ufacturers and growers transport their the retailer and consumer. products to distributors and retailers.

Booth #774 Booth #831 Booth #843 Booth #854 PRODUCELIVE! GREEN GIANT GROWERS EXPRESS BEACH STREET FARMS, LLC Vero Beach, FL FRESH (SCHOLL Salinas, CA Watsonville, CA ProduceLive! is a GROUP II) Your “Partnerships for Beach Street Farms, a premier complete and Eden Prairie, MN Success” can be found at grower/shipper of conventional and affordable business management AISLE 800 We’ve expanded the Green Giant’s the Growers Express/ organic berries, is committed to solution for the fresh produce presence on new packaging. This Capurro Farms booth. Come visit us providing the highest quality berries industry. It is browser-based and brand is recognized by 96 percent at our relaxing lounge and find out available. Growing in the heart of the runs on your server providing of consumers. The Green Giant how we can become your partner California strawberry-growing regions desktop performance. You can Fresh brand is synonymous in con- for success with our wide array of of Northern and South- do business anywhere. Audio/video sumers’ minds with quality, freshness product offerings! ern California, supplies communication to passive and trust. are available almost item mapping. year-round.

Booth #869 Booth #969 Booth #1015 Booth #1015 SOUTHERN GIORGIO FRESH CO. BALLANTINE PRODUCE FOWLER SPECIALTIES, INC. Reading, PA Sanger, CA PACKING CO. Pompano Beach, FL Giorgio Fresh is launching four new Established in 1943, Ballantine Fowler, CA Southern Specialties is a leading items at Fresh Summit: Sliced Shiitake Produce was founded to meet the Sam Parnagian founded Fowler Packing AISLE 900 grower, importer, processor and with Rosemary & Garlic Sauce; Exotic AISLE 1000 demand for fresh produce at the end in 1945 as a pioneer developing shipper of a variety of premium Variety Pack with Baby Bella, Oyster of World War II. Today Ballantine is a advances in fruit handling and variety specialty products. We offer & Shiitake: Sliced Mushrooms with vertically integrated fresh produce development. The family still plays an Southern Selects brand value-added Zesty Garden Herb Seasoning Mix; company, and a proud partner in the active management role. Please visit us products as well as the Paradise and Sliced Mushrooms with Lemon Ripe ‘n Ready, Zeal and Treehouse and learn more about the Ripe ‘n brand tropical line. Garlic Herb Seasoning Mix. Kids brands. Ready, Zeal and Treehouse Kids brands.

Booth#1051 Booth #1015 Booth #1015 Booth #1031 GEORGE BROTHERS INC. SUNWEST FRUIT CO., INC. FOUR SEASONS CHANTLER PACKAGING INC. Sultana, CA Parlier, CA FOOD LTD Mississauga, ON, Canada With roots back to 1942, George Starting with a single orchard in 1972, Vancouver, BC, Canada Leaders in processed food flexible Brothers produces over the Britz family has established Sun- Four Seasons is a conventional/ packaging and easy-to-use MAP film, 75 varieties of tree fruit. West as an industry leader in innova- organic wholesale distributor. Sunrise PrimePro® for shelf life extension of Staying true to its values tion, food safety, integrated farming Logistics is third-party logistics with a fresh produce. Available in bags, of honesty and quality and shipping while delivering consis- focus on transportation, warehousing, sheets, roll stock and recognized as an industry leader. tently excellent eating. A proud Ripe and distribution. Earth Source repre- and pallet covers. A proud partner in Ripe ‘n Ready, ‘n Ready, Zeal and Tree- sents domestic and international Zeal, and Treehouse Kids brands. house Kids brand partner. conventional/organic growers.

110 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 104 Booth #1073 Booth #1101 1107 Booth #1113 M & M FARM, INC. TEMKIN SPICE WORLD, INC. PANDOL BROTHERS, INC. Miami, FL INTERNATIONAL, Orlando, FL Delano, CA M&M Farms is Tropicals! M&M INC. Spice World has been in In the produce industry, we grows and markets over 40 of Payson, UT the garlic business and think of “fresh” as not stored

the finest tropical roots, AISLE 1101 Laser micro-perforations ensure the serving American or preserved. At Pandol, as fruits and vegetables. optimal respiration rate, preserving fla- supermarkets for 59 we near our seventh decade From avocados to vor, freshness and quality without visi- years. To better serve our in the produce business, we are yucca, M&M harvests ble perforations or vent holes. FDA- customers, we are growers, stressing an additional meaning — full quality and reliability. approved mono-layer, saran-coated processors and shippers. Spice World of or renewed in vigor or and anti-fog films can be laminated to is the No. 1 jar garlic in America’s readiness for action. Pandol has a help ensure optimal oxygen and water supermarkets today. fresh, new vitality and energy — vapor transfer rates. and a new, fresh look.

Booth #1119 Booth #1139 Booth #1155 Booth #1168 RIVER RANCH LITEHOUSE FOODS ORCHID ISLAND CATALYTIC Salinas, CA Sandpoint, ID JUICE COMPANY GENERATORS, LLC River Ranch has redesigned its U.S. Litehouse Foods is an employee- Ft. Pierce, FL Norfolk, VA and Canadian salad packaging graph- owned company that manufactures As the juice industry’s We manufacture ethylene application ics to give consumers more of what refrigerated salad leader, our brand drives loyalty and systems to initiate the natural ripen- they want: easier-to-understand flavor dressing, organic profitability into your fresh, organic or ing process of many fruits. Introduc- names, big open window for easy dressing, veggie dips, gourmet juice program. We offer the ing the all new Smart-Ripe® Genera- viewing and a design that comple- caramel, fruit dips, right variety to satisfy your most dis- tor and Ethylene Control Panel, which ments the Popeye Fresh! line. Vibrant, homemade bleu cerning customers. Let us partner controls, monitors and records ethyl- attention-getting graphics and great cheese crumbles, with you in growth! Get Fresh...Get ene levels in commercial product inside. sauces and freeze-dried herbs. Florida. . . Get Natalie’s. ripening rooms.

Booth #1168 Booth #1169 Booth #1172 Booth #1187 QA SUPPLIES LLC FAT LAW’S FARM, INC. SENECA FOODS CORP. BARE FRUIT, LLC Norfolk, VA Honolulu, HI Marion, NY Omak, WA We supply hundreds of com- Hawaii’s largest exporter of fresh basil Perfectly attuned to the hectic rou- Bare Fruit is a petitively priced products to meet the to the mainland and Cana- tines and on-the-go eating habits of delicious, healthful needs of professionals and assure the da. Premium herbs and today’s busy families, Seneca Snack snack that is 100 percent quality of fresh produce and other exciting Asian products are Chips meet the quest for a tasty, yet organic bake-dried fruit, high in fiber perishables will be maintained. With food-safety certified with healthful, snack alternative. Less fat, and naturally sweet with no added thermometers, water-quality testers, consistent supplies. Ask low sodium, no cholesterol and sugar or preservatives. And it’s even insulated covers, etc., you can find about our sun-drenched, great taste combine to make Snack gluten free! anything you need to monitor, control nutrient-packed Hawaiian Chips the preferred choice among or evaluate environmental conditions. grown herbs. Try our delicious recipes. health-conscious individuals.

Booth #1259 Booth #1271 Booth #1287 Booth #1301 D’ARRIGO BROTHERS CO. ALBERT’S ORGANICS, INC. REDLINE SOLUTIONS, INC GRIMMWAY FARMS OF CALIFORNIA Bridgeport, NJ Santa Clara, CA Bakersfield, CA Salinas, CA Albert’s has been the leader in the RedLine develops and integrates reli- Grimmway Farms is a grower/shipper D’Arrigo Brothers (Andy Boy) is a distribution of organic fresh foods able bar code, RFID and mobile tech- of fresh and processed conventional AISLE 1200 family-owned company specializing in since 1982 and is the largest whole- nologies that streamline internal AISLE 1300 and organic carrots and carrot juice romaine hearts, broccoli rabe, sale distributor of organic produce processes, increase efficiency and concentrate. We also grow a full line romaine, iceberg, green leaf, red leaf, and other fresh foods in the United better meet food-safety require- of organic vegetables under the butter lettuce, broccoli, shrink-wrap States. ments. Its RedLine Cooler platform Cal-Organic label. In addition, broccoli, cauliflower, cactus pears and provides a real-time interface Grimmway ships year-round supplies fennel. A proud supporter of the between cold storage workers and of potatoes and citrus. Breast Cancer Research Foundation. your grower accounting system.

Booth #1311 Booth #1318 Booth #1320 Booth #1369 PACIFIC FRUIT, INC. PRINCE EDWARD YAKIMA FRESH, LLC CALIFORNIA New York, NY ISLAND POTATO BOARD Yakima, WA SUN DRY FOODS Pacific Fruit, sole distributor for Boni- Charlottetown, PEI, Canada Our growing, packing and shipping Danville, CA ta premium bananas and tropical fruit From the rich red soil of beautiful PEI, experience reaches back to the early California Sun Dry dries California in North America, has been providing we are Canada’s largest producer of 1900s. Yakima Fresh was formed by tomatoes in the summer sun for high-quality produce from Ecuador potatoes. PEI ships to over 30 coun- Northwest growers: Roche, Stadel- seven to 10 days. The slow process for over 50 years. Our produce line tries and has been a supplier to the man and Yakima Fruit. allows partial rehydration at night, includes bananas, plantains, pineap- United States for many years. Varieties Your source for all your producing a bright red, sweet, full- ples, mangos, reds and niños. include round white, russet, yellow, Northwest apple, cherry bodied dried tomato. The tomatoes red, organic and other specialties. and pear needs! retain a sweet plumpness.

Booth #1375 Booth #1389 Booth #1390 Booth #1401 CAVENDISH ITAUEIRA AURORA PRODUCTS INC. COOSEMANS PRODUCE, LTD. AGROPECUÁRIA S/A Stratford, CT WORLDWIDE Charlottetown, PEI, Canada Fortaleza, Ceara, Brazil Aurora Products manufactures all-nat- Miami, FL Your one-stop supplier of top quality Itaueira, a family-owned com- ural and organic dried fruits, nuts, trail The Coosemans family of

potatoes. Russets, whites, reds, yel- pany growing tropical fruits in mixes, granolas and grail mixes. We AISLE 1400 companies, with major lows, blues, fingerlings, organics — Brazil since 1982, will be at PMA for can supply all your healthful retail packing operations we have what you’re looking for. the first time, presenting its REI Yel- snack needs with over 300 in Miami and Maryland and growing Retail or foodservice orders bring low Honey Dew melons. The melons items in a wide variety of programs in Los Angeles, Denver and value through premium products and are available year-round; GlobalGAP packaging and an entire Houston, will focus on its retail prod- packaging. certification by Primus Lab. bulk line. ucts and programs at PMA this year.

112 PRODUCE BUSINESS • SEPTEMBER 2008 Booth #1409 Booth #1419 Booth #1501 Booth #1607 NATURIPE FARMS LLC TANIMURA & ANTLE, INC. DEL MONTE FOODS CALIFORNIA STRAWBERRY Naples. FL Salinas, CA San Francisco, CA COMMISSION Naturipe Farms announces produc- The Tanimura & Antle families have Del Monte SuperFruit™ is for health- Watsonville, CA tion of organic blueberries for the made growing the best produce their conscious consumers looking for a California supplies 88

2008-2009 Chilean growing season life work. With unrelenting focus on convenient and delicious way to AISLE 1607 percent of U.S. straw- has substantially increased. Our focus quality, service and innovation, our increase their family’s consumption of berries. In 2008, retail is on quality products and services Artisan™ product line is a fruit and antioxidants. SuperFruit 8- strawberry sales and on a balanced grower production must buy! ounce cups contain fruit topped $1.6 billion, a 9.7 percent and product portfolio to chunks in an exciting blend increase over 2007. Named America’s meet the needs of of 100 percent fruit juice. favorite fruit, strawberries are avail- consumers and buyers. able year-round from California.

Booth #1613 Booth #1700 Booth #1701 Booth #1717 C.H. ROBINSON BC HOT HOUSE FOODS INC. CURRY & COMPANY, INC. THE MARCO COMPANY WORLDWIDE, INC. Surrey, BC, Canada Brooks, OR Ft. Worth, TX Minneapolis, MN The BC Hot House growers believe in Curry & Company markets and The Marco Company is a vertically C.H. Robinson Worldwide started in consistently providing the freshest, distributes proven quality integrated manufacturer of custom

1905 as a produce and general mer- AISLE 1700 most flavorful greenhouse produce. onions, potatoes and fixtures and décor for retail and ser- chandise broker, and this tradition is You can see and taste this blueberries year-round across vice providers. Founded in 1984 by still going strong. From produce commitment North America from our the Cooper family, Marco, which sourcing to transportation to distribu- in everything multiple shipping locations. Since remains family-owned, has grown into tion services, C.H. Robinson has the we grow. 1961, discriminating buyers have an industry leader resources you need to effectively come to depend on our quality and quality retail manage your produce supply chain. products and our high service level. solutions provider.

Booth #1731 Booth #1747 Booth #1753 Booth #1759 RED ZOO MARKETING HURST’S BERRY FARM WADA FARMS MARKETING FRIEDA’S Kingsville, ON, Canada Sheridan, OR GROUP, LLC Los Alamitos, CA Red Zoo innovates with style and Hurst’s Berry Farm has the finest Idaho Falls, ID We currently offer class! GrapeRoma, Amorosa, BaBee, specialty berries! From Wada Farms Potatoes has been a more than 600 specialty produce Party Pack and the colorful new blueberries, blackberries leader in the potato industry for over and complementary items to retailers 5-ounce Lunch and raspberries to 60 years and handles all varieties of and foodservice operators. Come Paks add value specialty berries such as potatoes and onions from all areas of taste our latest innovation in fresh to greenhouse currants, gooseberries the country. We also offer the nation- garlic — Frieda’s Garlic Delight, a ver- vegetable lines! and our popular kiwi berries, Hurst’s ally recognized Dole label. At Wada satile, flavorful garlic spread, dip and offers high-quality produce Farms, our goal is to deliver the high- marinade. Cholesterol-free, dairy-free, year-round. Drop by and see us! est quality with the best service. with no preservatives or additives.

Booth #1769 Booth #1819 Booth #1831 Booth #1847 CALIFORNIA GIANT THERMAL TECH WASHINGTON CIRULI BROTHERS, LLC BERRY FARMS ENGINEERING STATE PRODUCE Nogales, AZ Watsonville, CA Cincinnati, OH PAVILION For three generations, Ciruli Brothers California Giant has developed berry Stop by to discuss Moses Lake, WA has brought you a wide variety of the recipes with nutritionist and chef Julia AISLE 1800 solutions to your ripening needs with Washington produce finest quality fruits and vegetables, Myall. Recipes featuring strawberries, the company that has installed more will be at its most attractive to including the premium Champagne® blueberries, raspberries and ripening rooms for more Top 10 both the eye and palate this year, as a mango. Please stop by and visit us at blackberries are delicious and very retailers than all the other companies coalition of businesses and booth 1847. For more information, easy to prepare. Recipes are available combined. commodity groups are exhibiting you may also visit for distribution at retail to enhance Washington’s finest produce. our website. berry displays.

Booth #1871 Booth #1900 Booth #1900 Booth #1913 ONEONTA STARR EDINBURG CITRUS FOX PACKAGING FRONTERA RANCH GROWERS ASSOCIATION McAllen, TX PRODUCE, LTD. Wenatchee, WA Edinburg, TX Fox Packaging leads the produce Edinburg, TX Oneonta Starr Ranch The Edinburg Citrus Association has packaging industry with the Fox Fresh Frontera Produce is a grower, packer,

Growers and Diamond AISLE 1900 been growing and packing quality Mesh line of consumer bags and the shipper and importer — and the Fruit have designed a Texas red grapefruit and oranges service you would expect from a premier source for domestic, Mexican unique brand through the new since 1932. We pack a wow factor in company that has serviced the and Central and South American merger. The Diamond Starr Growers every carton of our sweet, juicy fruit produce business fruits and vegetables. label is sure to create an excellent and assist our customers with pro- for 40 years. pear category for all! grams to stimulate interest and sales.

Booth #1919 Booth #1939 Booth #1969 Booth #1979 SUN WORLD PERO VEGETABLE MANN MAXCO SUPPLY, INC. INTERNATIONAL, LLC COMPANY, LLC PACKING CO., INC. Parlier, CA Coachella, CA Delray Beach, FL Salinas, CA Maxco’s LTS Green System clamshell The Sun World proprietary Stop by the Pero Mann’s Light Bites™ are a is the sustainable alternative to red grape Scarlotta Seedless® and Vegetable booth 1939 new packaged, portable, waxed, EPS or hard plastic. 100 the tri-color grape clamshell, Rainbow at the PMA; see how healthful snack item. The packages percent recyclable and of Flavors, will be on display. The 100 years of experience contain a variety of washed and engineered to safely Rainbow of Flavors bi- and tri-color can help you. Quality ready-to-eat fruits, vegetables and deliver fresh produce clamshell is available in 2-, 3- and 4- fresh produce 365 dips packaged in a hard-pack snack in good condition. No pound clamshells. days a year. tray with micro-perforation film. non-recyclable materials.

SEPTEMBER 2008 • PRODUCE BUSINESS 113 Booth #2001

TEXAS SWEET 192 191 293 390 391 489 891 990 993 1090 1091 1192 1193 1290 1291 1390 1389 1489 1589 1687 2089 2192 2187

POTATO DISTRIBUTING, INC. 291 991 1190 1191 2188 190 289 386 987 1088 1089 1186 1189 1288 1287 1384 1787 1887 1987 Edgewood, TX 188 Texas Sweet Potato Distributing is a 185 287 385 885 984 1086 1087 1187 1286 184 483483 580 1285 1385 1484 1481 1585 1684 2081 AISLE 2000 regional distributor of fresh sweet 281 979 1083 1182 1181 1281 13801380 1381 1480 1583 1682 16811681 1779 1881 1980 1979 2181 2278 182 potatoes to retailers, wholesalers and 181 278 381 480 481 879 1081 1180 179 377 476 1569 2179 processors on a year-round basis. We 176 275 469469469 675 774 769 1075 1172 1175 1277 1376 1375 1474 1475 1675 1871 20692069 2177 2276

take pride in our quality product and 169 869 969 1275 1374 1769 1969 in providing outstanding customer 369 671 770 1073 1271 1370 2169 269 1069 116811681168 1169 1369 1469 1669 service everyday. We market primarily 170 under our Little Joe label.

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BASKET EASE 150 649 748 745 1149 Lakeville, MN 148 343 547 646 1443 1543 1747 1947194719471947194719471947 2047 2143 647 744 843 1041 1341 Our containers come in plastic, wicker 146 643 943 1139 1243 1643

and bamboo, all with the patented 441 541 740 1741 1839 1939 20312031203120312031203120312031203120312031203120312031 design that makes our program 641 731731731731731731731731731731731731 138 the easiest and fastest to do. 137 236 237 339 436 831831831 1231 1431 1531 2131 337 431 531 631 1031 1331 1731 134 We have a complete line 1131 183118311831183118311831183118311831 of supplies. 131 231 330 331 430 130

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110 B&W QUALITY GROWERS 209 306 1107 1607 1809 19071907 207 301 1301 1807 Fellsmere, FL 104 101 405 504 501 601 701 801 901 1001 1401 1801

B&W Quality Growers is the world’s 201 403 500 1101 1601 1700 1701 1802 19011901 21012101 largest grower of watercress and now 100 401 1800 wild roquette baby arugula. B&W packs only products we grow on our seasonal farms in six states. We are HACCP certified, Primus audited and certified organic for USDA and E.U. standards.

Booth #2031 Booth #2031 Booth #2047 Booth #2059 FLORIDA DEPARTMENT OF SOMERSET CONWED EARTHBOUND FARM AGRICULTURE AND ORGANIC FARMS Minneapolis, MN San Juan Bautista, CA CONSUMER SERVICES Naples, FL Conwed introduces The No. 1-selling brand of organic Tallahassee, FL We feed people. We’re organic. Vexar® compostable netting, the first produce is showing an expanded line, Come meet executive chef and We believe in sustainable farming, commercially available netting with new salad mixes in convenient culinary ambassador Justin in the health of our children, in the certified to the ASTM D6400 clamshells, exotic dried Timineri of FDACS. His responsi- health of our workers and in the standard. Netting delivers a high fruits, ready-to-use aromat- bilities include promoting Florida’s health of our earth. We are a group product-to-package ratio that ics in shelf-stable jars, fresh freshest commodities, creating new of people who work hard to do it supports increasingly popular aromatic vegetables in recipes, participating in trade events right, for now, for tomorrow and for sustainability efforts. mesh bags and new fruit and educating children about food the generations to come. and commodity offerings. and nutrition.

Booth #2069 Booth #2069 Booth #2081 Booth #2089 JMB INTERNATIONAL WELL-PICT, INC. A.J. TRUCCO, INC. SUMMERIPE San Francisco, CA Watsonville, CA Bronx, NY WORLDWIDE, INC. Fresh pomegranate arils are now We’ve expanded organic availability Importers of fine produce from Dinuba, CA available from JMB! Packed in for proprietary strawberries, raspber- around the world. Specializing in fresh Summeripe ready-to-eat peaches, convenient plastic punnets, these ries, and blackberries; new packaging Italian chestnuts, kiwifruit, grapes, cit- plums, and nectarines. We have mas- juicy treats are full of flavor and nutri- includes the 12-ounce rus, fresh and dried figs, roasted tered the all-natural process to condi- tion. No rind to remove, they’re ready raspberry/blackberry clamshell and hazelnuts, garlic, dried fruits and nuts. tion our tree fruit. Our complete and to use in salads, recipes, or enjoy redesigned 4-pound strawberry pack; Also available Trucco comprehensive program is centered straight out of the pack! Drop by our and our newest late-summer straw- Organic, a full line of on dedicated teams and great tasting booth to learn more. berry variety provides longer shelf life. USDA-certified organic fruit. Summeripe fruit — the brand produce. you can count on from tree to table.

114 PRODUCE BUSINESS • SEPTEMBER 2008 2089 2192 2187 2289 2391 2490 2491 2592 2587 2691 2791 2886 2893 2990 3283 3393 3492 Booth #2100 2188 2590 2889 3387 3490 2389 2486 2489 2586 2787 2988 3488 3487 3586 3589 3688 3687 VIDALIA ONION 2387 2485 2687 2786 3486 3587 3686 COMMITTEE 2081 2281 2584 2685 2784 2885 2980 3585 3684 3685

2181 2278 2381 2481 2580 2581 2781 2880 2881 3381 3477 3583 3682 3683 Vidalia, GA 2679 3679 The Vidalia® Onion Com- 2179 2477 2576 3275 3577 AISLEmittee 2100 oversees national 20692069 2177 2276 2269 2375 2569 2775 286928692869286928692869 296929692969 3077 3174 3175 3274 3375 3675

2669 3071 promotional and research 2169 2471 3172 3469 3569 3673 activities on behalf of all 2369 2769 3170 3169 3269 3369 3671 Vidalia growers and handlers. You can try your hand at "Original Sweet Onion" trivia and you could win a 2059 2255225522552255225522552255 235923592359235923592359 2459 2560 2559 2655 2759 2859 2961 3059 3159 3259 3357 3459 3663 $1,000 gas card! 3661

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20312031203120312031203120312031203120312031203120312031 2339 2443 2639 2739 2940 2941 3339 3439 3541 3641 Watsonville, CA 2539 We are a third-generation family- 2131 2437 2538 3031 3137 3639 owned company serving the produce 2530 2831 2931 35313531353135313531 3637

2331 2435 2531 263126312631 3231 3331 3633 and floral industries since 1923. With 2431 3131 locations in California and Mexico, we 3631 have built our reputation on service, quality and innovation. See our new 2023 2118 21212121 2219 2322 2321 2515 262126212621 2721 2821 3119 3219 3319 3419 3519351935193519 line of RunRit blueberry clamshells. 2417 2518 3021 3122 3619

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21072107 25012501250125012501250125012501 3309 3410 Booth #2169 2306 2301 2701 2801 3009 3104 310131013101310131013101 3207 3408 3407 3507 3607 PEAR BUREAU 3005 3307 3404 NORTHWEST 2300 3305 3605

21012101 3001 3100 3201 3301 3400 3401 3501 3603 Milwaukie, OR 3601 USA Pears, grown in Washington and Oregon, represent 84 percent of the U.S. fresh pear crop. With several varieties and nearly year-round avail- ability, USA Pears are a fresh and profitable choice from fall to summer. Learn more about varieties and pre- conditioning programs.

Booth #2187 Booth #2201 Booth #2201 Booth #2219 SALYER AMERICAN FOUR CORNERS FARMS VAN SOLKEMA KPG SOLUTIONS, INC. FRESH FOODS, INC. Register, GA PRODUCE, INC. Longwood, FL Salinas, CA Four Corners Farms are Byron Center, MI Formerly known as Kirkey, KPG Salyer American Fresh Foods is a growers and shippers of A family-owned busi- Solutions is a professional services

leading grower/packer/shipper of AISLE 2200 Vidalia and Peru sweet ness for over 80 years, we specialize company focused on helping our fresh vegetables with an increased onions. Our onion program in mixed vegetables year-round, ship- customers achieve cost savings and emphasis on quality, starts with Vidalias in early spring and ping from Michigan, Georgia and increased revenue through software service and food ends with Peru sweets, usually in Feb- North Carolina. We also ship sweet and consulting safety all packed ruary. All of our Perus are repacked onions all year long! Vidalias in spring, solutions. under the American on site. Season-long USDA inspectors followed by onions out of Peru and Classic brand. on site. Chile.

Booth #2269 Booth #2381 Booth #2387 Booth #2445 MONTEREY MUSHROOMS, TIMCO WORLDWIDE INC. DELTATRAK® INC. NOW PLASTICS INC. Woodland, CA Pleasanton, CA East Longmeadow, MA Watsonville, CA North America’s DeltaTrak® will be spotlighting the Now Plastics offers a wide variety of Monterey’s new Sun Bella™ mush- leading year-round, new ColdTrak® Cold Chain Manage- specialty films and bags made specifi-

rooms use natural sun-ripening AISLE 2300 quality-driven melon ment software that will allow shippers AISLE 2400 cally to meet the demands of the process that delivers 100 percent of shipper, offering mini and seedless and receivers to visualize temperature produce markets. Our flexible plastic the daily value of vita- watermelons, cantaloupe, honeydew data of perishable commodities. In packaging solutions will help extend min D. which is essen- and seasonal organics. With conjunction with ColdTrak, DeltaTrak shelf life, improve point of sale and tial to bone health and advanced packing and QA systems has released the new CT Flashlink® maintain the quality and a strong antioxidant. and growers spanning five countries Data Logger. Web-hosted solution or freshness of your fruits, including the United States. desktop application. vegetables and herbs.

SEPTEMBER 2008 • PRODUCE BUSINESS 115 Booth #2451 Booth #2477 Booth #2481 Booth #2485 NEW JERSEY NORTH SHORE CIMINO BROTHERS WEST PAK AVOCADO, INC. DEPARTMENT OF GREENHOUSES, INC. PRODUCE Temecula, CA AGRICULTURE La Quinta, CA Salinas, CA West Pak specializes in packing, ship- Trenton, NJ North Shore Greenhouses provides Cimino Brothers is a fourth ping and marketing avocados. We The New Jersey Department of innovative products to the retail mar- generation grower/shipper specializ- source from all three major growing Agriculture represents New Jersey’s ket. Specializing in living herbs and ing in broccoli, carrots and Chinese regions, California, Mexico and Chile, vast agricultural industry and uses the European cucumbers. Living herbs cabbage. We are excited with state-of-the-art packing facilities Jersey Fresh marketing and advertis- are the freshest, longest lasting herbs to introduce our full line of in California and Mexico plus distribu- ing program to showcase the 100 dif- available. Stop by value-added broccoli florets. We offer tion centers strategically located ferent varieties of fruits and vegeta- and see our new liv- in-house logistics making full and par- across the United States. bles grown in the Garden State. ing potted basil. tial load deliveries.

Booth #2501 Booth #2501 Booth #2512 Booth #2515 CALIFORNIA LEAFY GREENS CALIFORNIA TREE FRUIT CHRISTOPHER RANCH SUNSWEET GROWERS MARKETING AGREEMENT AGREEMENT (CTFA) Gilroy, CA Yuba City, CA Sacramento, CA Reedley, CA Fresh California-grown heirloom Sunsweet offers a wide In 2007 California farmers came The PPN Network is a marketing garlic. Organic and conventional in variety of 100 percent fruit

AISLE 2500 together to raise the bar for food resource for the Califor- bulk, peeled, jarred, roasted, snacks that are highly nutri- safety through creation of the LGMA. nia peach, plum and nec- specialties. COOL labeling solutions; tious and convenient. Prod- LGMA members are working tarine industry, retail and certified pesticide-residue free. ucts include dried plums, mangos, collaboratively to protect public foodservice trade. Deliv- cranberries, cherries and apricots. health by reducing potential sources ering information, mar- Come try Sunsweet Ones® individual- of contamination in Califor- keting and tools to sell ly wrapped dried plums — conve- Y O W I L N E M D

A

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nia-grown leafy greens. California stone fruit. F nient, healthy and indulgent. ★ S I 6 N 5 C E 1 9

Booth #2518 Booth #2530 Booth #2552 Booth #2560 HERBTHYME FARMS, INC. INGERSOLL RAND MOONEY FARMS WAYNE E. BAILEY Compton, CA INDUSTRIAL Chico, CA PRODUCE COMPANY HerbThyme Farms — Americas’ REFRIGERATION Mooney Farms is the Chadbourne, NC largest organic herb grower. Deliver- Bridgeton, MO leading manufacturer of premium Wayne E. Bailey Produce has been ing coast to coast from California, We now offer comprehensive rebuild sun-dried tomato products in the exceeding customers’ expectations Florida, New England, Ohio, Pennsyl- services that return existing equip- United States. Our house brands, for over 70 years. vania and Montreal facilities. Primus ment to original factory specification. Bella Sun Luci and Summer’s Choice, Our company prides labs rated Superior. USA grown. Quality rebuild services for rotary offer jars of sun-dried tomato halves itself on its ability to screw, reciprocating and other refrig- and julienne cut in 100 percent pure meet any sweet eration and air compressors. olive oil or our delicious sun-dried potato need. tomato pesto.

Booth #2576 Booth #2581 Booth #2587 Booth #2601 HOLLANDIA PRODUCE IPPOLITO FRUIT & EUROPEAN FLAVORS/CSO NEW YORK STATE Carpinteria, CA PRODUCE, LTD. Ferrara, Italy DEPARTMENT OF Hollandia Produce, home Burlington, ON, Canada The European Flavors project aims to AGRICULTURE AND of the award winning Come visit North America’s promote the extraordinary flavors and MARKETS

family of Live Gourmet leading Brussels sprouts grower/ characteristics of fresh and processed AISLE 2600 Albany, NY brand hydroponically shipper/packer. We also offer a vast Italian fruits and vegetables in the Come visit the New York State Pavil- grown vegetables. Har- array of spinach packs, along with United States. Inspired by the simple ion to see and sample outstanding vested with its roots over 200 SKUs of bulk and yet healthful Mediterranean fresh produce from the state of New intact to preserve freshness, Live packaged produce items. cuisine, our fruits are pro- York. You will have the opportunity to Gourmet is “Absolutely fresh because duced in compliance with meet with some of the finest growers it’s still Alive.” strict European directives. and marketers in the country and dis- cuss your fresh produce needs. Pro- duce grown in New York, The Pride of Booth #2601 Booth #2601 Booth #2631 New York. NEW YORK STATE SETTON’S PISTACHIO FARMS TURBANA CORPORATION VEGETABLE GROWERS Commack, NY Miami, FL ASSOCIATION (NYSVGA) Producer of “America’s Best Tasting Turbana is the fourth largest Kirkville, NY Pistachios,” Setton Farms offers a importer of bananas, the NYSVGA is proud to support our full-line of pistachios, nuts, dried leading importer of Fair New York growers through promo- fruits, seeds, trail mixes, chocolates, Trade bananas and plantains, tion, education and research. Visit our candies, organic and all-natural as well as a growing booth to explore the diversity, quality products available in importer of gold pineapples and quantity of New York bulk and retail in the United States. Our commit- state grown vegetables packaging. ment to product quality and personal customer attention is second to none.

Booth #2669 Booth #2687 Booth #2701 Booth #2721 MISSION PRODUCE, INC. FRESKA PRODUCE THE OPPENHEIMER GROUP SEALD SWEET Oxnard, CA INTERNATIONAL, LLC Vancouver, BC, Canada INTERNATIONAL Mission’s asparagus program is Oxnard, CA Come help us celebrate 150 years of Vero Beach, FL year-round with sourcing from Peru, Freska Produce International innovation at The Oppenheimer Seald Sweet proudly

Mexico and California. specializes in mangos from all of the AISLE 2700 Group. Through forging direct rela- celebrates 100 years of major exporting countries on a tionships between the world’s leading service to the produce year-round basis. growers and North American retail- industry and honors all ers, we have cultivated sophisticated who have made it possible. A cen- delivery networks, pio- tury of fresh, premium citrus from neered new fresh produce the finest groves around the world. varieties and set standards for food safety and quality.

116 P RODUCE BUSINESS • SEPTEMBER 2008 © 2006

Reader Service # 40 Booth 2747 Booth #2759 Booth #2801, 3001 LGS SPECIALTY SALES DUDA FARM DOLE FOOD COMPANY Bronx, NY FRESH FOODS, INC. Westlake Village, CA Nationally renowned for our Oviedo, FL Dole Food Company is one of the deliciously sweet, easy-peeling Committed to delivering quality, world’s largest producers and mar- AISLE 2700 Darling Clementines, LGS has enhanced our innovation and service to its cus- keters of high-quality fresh fruit, fresh product mix with exceptional quality avoca- tomers. Duda Farm Fresh Foods is a vegetables and fresh flowers. In addi- dos, grapes, limes, lemons, navels, Minneo- major grower, shipper and marketer tion, Dole markets a growing line of las and sensational new late-season citrus of fresh citrus and fresh and packaged foods and frozen fruit and from around the world. With LGS, fresh-cut vegetables with is a produce industry leader in nutri- you have a consistent, year-round supplier primary locations in Florida, tion education and research. and first access to pioneering new varieties. Texas, California, Arizona, Georgia and Michigan.

Booth #2821 Booth #2831 and 2931 Booth #2849 OCEAN MIST FARMS MELISSA’S/WORLD PRODUCE MAGIC Castroville, CA VARIETY PRODUCE SOFTWARE Ocean Mist will introduce the Los Angeles, CA Escondido, CA first PLU sticker for bulk artichokes at The country’s leading distribu- Inventory/accounting Fresh Summit. Created to proactively tor of variety specialty pro- software for growers, farm manage- comply with country-of-origin labeling duce and foods. New products — ment, packers/repackers, processors, laws that go into effect this year, the fresh mangosteen, peeled cipolline shippers, all brokers, import/export, sticker will be applied in the field as onions, peeled shallots and pome- floral, organics, fresh cut, consign- each artichoke is hand-packed during granate arils. Exclusive items — Dutch ment, distribution centers, “iTrade”, harvest. The sticker adheres to the Yellow Potatoes, Ruby Gold Potatoes, etc. User-defined menus; interfaces to choke in moist-wet conditions. Muscato grapes, organic Plum Bites. Excel, QuickBooks and more.

Booth #2853 Booth #2859 Booth #2869 Booth #2881 PWP INDUSTRIES SUNNYRIDGE FARM INC. COLORADO POTATO WAVERLY PLASTICS Vernon, CA Winter Haven FL ADMINISTRATIVE Waverly, IA PWP introduces AgroResin SunnyRidge is a family-owned and COMMITTEE Tug & Tote produce bags, manufac- sustainable packaging. AgroResin® is operated grower, packer and shipper Monte Vista, CO tured by Waverly Plastics, dispense 100 percent biodegradable and of blueberries, raspberries and black- Visit Colorado Potatoes and see why one-at-a-time from a box that inte- compostable and uses readi- berries. SunnyRidge represents the our unique varieties are favorites at grates beautifully into your produce ly available renewable agri- finest growers from regions through- home and in restaurants. Only our department. Also cultural biomass fiber com- out North, Central and South potatoes are grown in a available in posites that would otherwise America, delivering reliable healthy alpine environment. biodegradable plas- be discarded. FDA-approved year-round produce and tic formulation. for direct food contact. import/export services.

Booth #2961 Booth #3021 Booth #3043 Booth #3051 NEW YORK APPLE ALLIANCE RUBBER BLUE BOOK SERVICES AIRDEX ASSOCIATION COMPANY Carol Stream, IL INTERNATIONAL, Fishers, NY Hot Springs, AR Blue Book Online Services (BBOS) is INC. New York’s 2008-2009 apple crop will Alliance Rubber rubber bands are What’s New for 2008. Members can Henderson, NV AISLE 3000 AISLE 2900 have slightly above average volume made fresh daily in the United States conveniently access real-time infor- Airdex AIRpallets™ ultra-light but will exceed recent crops for flavor to meet your packaging needs. Cus- mation, reports, ratings, analytics, and design and composition thermal insu- and condition. Leading New York tom imprinted bands designed to tools. Stop by to learn more about lates produce in transit without costly favorites are McIntosh, Empire, Gala, brand and promote your products. this latest innovation bottom wrap and prevents bruising Honeycrisp, Cortland, Crispin and Stock PLU bands to comply with from the leading credit and product damage in transit. Totally Macoun. COOL requirements. & marketing informa- green and fully recyclable. tion provider.

Booth #3053 Booth #3071 Booth #3100 Booth #3104 SHENANDOAH COUNTRY FRESH BABÉ FARMS, INC. RIVERIDGE PRODUCE

GROWERS, INC. MUSHROOM CO. Santa Maria, CA 3100 MARKETING, INC. Harrisburg, VA Avondale, PA A premier grower/shipper located on Sparta, MI A year-round solution for locally Dedicated to the art of growing the central coast of California, Babé New crispy apple variety! Be part of

grown, certified-organic fresh mushrooms since 1925, Country Farms will exhibit select items from its AISLE the excitement as we announce our herbs. A longer shelf life ensures Fresh offers one of the most com- year-round harvest of over 30 new prince of an apple! freshness and reduces shrink. Consis- plete lines of mushrooms in the indus- varieties of baby lettuces tent quality, flavor and appearance. try. Fresh white, exotic, and wild and specialty greens, col- Grown in an eco-friendly, closed sys- mushrooms along with a full array of orful root veggies and tem with clean technology. dried and processed mushrooms. baby cauliflower.

Booth #3119 Booth #3131 Booth #3142 Booth #3152 IDAHO POTATO CONCORD FOODS, INC. BEDFORD INDUSTRIES, INC. SILVER CREEK COMMISSION (IPC) Brockton, MA Worthington, MN SOFTWARE Eagle, ID For a limited time, each box of We now have biodegradable options Boise, ID IPC brought you the cast Cranberry Bread Mix and Sweet available at a very competitive price. Visual Produce, an accounting program of Gilligan’s Island, the Potato Casserole Mix will have a $1off This biodegradable polypropylene targeted to the fresh produce industry, star of I Dream of Jeannie in-store redeemable coupon for a 12- material is FDA approved for food offers unique capabilities for produce and a wild Texas rodeo. At this year’s ounce bag of Ocean Spray Cranber- packaging and is fully recy- wholesalers, distributors, packers, bro- PMA show, IPC promises to deliver ries. Mixes are available in cases or clable. It can be incorporated kers and grower settlements, including another booth experience not soon floor shippers. The floor shippers into our ElastiTag®, Snap-A- customer menus, contract pricing, lot forgotten after the show’s end. Come have a tear-off recipe pad. Tag® or Bib Tie® products. control, route accounting, visual Inter- by and check out the action. net and much more.

118 P RODUCE BUSINESS • SEPTEMBER 2008 Booth #3159 Booth #3201 Booth #3219 Booth #3231 BOSKOVICH FARMS, INC. SENSITECH INC. CARLSON AIRFLO BROOKS TROPICALS, LLC Oxnard, CA Beverly, MA MERCHANDISING SYSTEMS Homestead, FL Cebollitas are now available! Also Sensitech, the lead- Brooklyn Park, MN Brooks Tropicals grows, packs and known as barbeque onions, they are ing global provider of cold-chain visi- We offer an extensive line of ships quality tropical produce from

the perfect accompaniment to AISLE 3200 bility solutions, combines electronic merchandising racks, energy-efficient sunny South Florida and the grilled favorites. A good source monitoring with data management case shelving and auxiliary merchan- Caribbean. Caribbean of vitamins A and C, iron and cal- and statistical analysis to help you dising products. Our focus is on offer- Red and Caribbean cium. Sold in bunches on the wet effectively and efficiently manage ing the best comprehen- Sunrise papayas, rack, 2 dozen per box (90 cartons your cold chain. Good temperature sive assistance and fresh SlimCado avocados, per pallet) and in 12 4-count bags management throughout the supply solutions for a measurable star fruit and limes are in the value-added section year- chain is critical to ensure the quality return on your investment. our specialties. round. and shelf life your customers require.

Booth #3269 Booth #3275 Booth #3283 Booth #3348 DOMEX BEACHSIDE PRODUCE, LLC FRESHERIZED FOODS GILLS ONIONS, LLC SUPERFRESH GROWERS Guadalupe, CA Ft. Worth, TX Oxnard, CA Yakima, WA Beachside Produce is a Fresherized Foods, makers of top- Visit our booth to cele- Domex is a tree-fruit leader for con- grower-owned sales and ranked Wholly Guacamole, proudly brate our silver anniver- ventional and organic apples, pears marketing company. introduces Wholly Salsa — the AISLE 3300 sary as the industry’s and cherries. Located in central Wash- Along with being one of newest addition to our ever-expand- premier fresh-cut onion ington state, Domex offers you mer- the leading producers and ing family of all-natural prod- grower-shipper! We will feature our chandising support, regional reps, marketers of commodity packed ucts. Stop by the booth to full line of retail and deli packs, year-round category planning and broccoli in the United States, we see our GuacMobile — including organic offerings. more. You’ll love our high-quality fruit also have the exclusive marketing recently featured on Food and customer service. rights to the Lyon variety artichoke. Network’s Unwrapped .

Booth #3352 Booth #3408 3410 Booth #3439 GOURMET TRADING MIXTEC GROUP ATLAS PRODUCE & BONIPAK PRODUCE COMPANY Pasadena, CA DISTRIBUTION, INC. COMPANY Los Angeles, CA Mixtec Group is the No. 1 executive Bakersfield, CA Santa Maria, CA Gourmet Trading offers search firm in produce. We provide Atlas Produce, grower and Bonipak offers the highest quality and green and white asparagus AISLE 3400 exceptional executive recruitment shipper of the popular Caramel freshness with year-round availability. and blueberries year-round. and leadership consulting to the Naturel™ Medjool dates and date Primary products include broccoli, In addition, purple aspara- “who’s who” of the industry. The coconut rolls, are excited to introduce cauliflower, lettuce, celery, spinach, gus is available during the upcom- best person in the pro- three new additions to their product mixed leaf vegetables and cilantro. ing holidays. Please stop by to see duce industry is currently line — Caramel Naturel™ date Our Cut-To-Cool Program ensures these as well as our new value- working for some com- almond rolls, jumbo red dried grapes fresh harvested products are cooled added products. pany. Why not yours? and jumbo golden dried grapes. and ready to ship within 24 hours.

Booth #3477 Booth #3547 Booth #3569 Booth #3617 ENZA ZADEN DIMENSIONAL INSIGHT CHURCH BROTHERS, LLC NORDSON Enkhizen, Netherlands Burlington, MA Salinas, CA CORPORATION The world’s first sweet green pepper, Dimensional Insight offers business In addition to offering a year-round Duluth, GA the SweetGreen, is making its Ameri- intelligence solutions that turn data supply of conventional and organic Nordson Mesa™ Adhesive Melters AISLE 3500 can debut at PMA. Its very high natur- into insight. The Diver Solution™ commodity and value added vegeta- AISLE 3600 provide reliable performance for such al sugar level makes it the sweetest allows decision-makers across your bles, Church Brothers applications as case sealing, pallet sta- pepper currently on the market. organization to access data quickly offers premium fresh bilization and tray forming. Nordson Greenhouse-grown using the best and intuitively. chopped salads and Classic™ IX and XV Adhesive Systems agricultural practices to develop a Pride of San Juan Herbs. use field-proven technology to pro- superior blocky shape, deep green Exclusive supplier of Dis- vide reliable performance. color and naturally sweet taste. ney Garden vegetables.

Booth #3619 Booth #3631 Booth #3637 Booth 3641 MAMAMIA PRODUCE LLC. PRIMA BELLA TOKITA SEED CO., LTD. MIATECH East Rutherford, NJ PRODUCE, INC. Saitama, Japan Clackamas, OR We are greenhouse growers and Tracy, CA Tomatoberry has a heart shape Miatech manufactures a range of shippers from the Dominican We ship fresh, super sweet and shiny deep-red color that perishable control equipment Republic and Mexico. Our corn year-round under the GloriAnn come from its high lycopene including produce misting systems lead item is mini seedless and Disney Garden Pixie Sweet content. It tastes very sweet and and humidification equipment. cucumbers that we supply brands. GloriAnn white, yellow and doesn’t carry the tomato’s greenish- Through controlled humidity or year-round. bi-color corn with/without husks, in a smell that can be off-putting. The reduced ethylene, our equipment variety of cob sizes and packs. Pixie cute, tasty and healthful Tomatoberry prevents waste, improves product Sweet bi-color cobbettes available in makes everyone happy! appearance and quality — resulting six-pack trays. in increased sales.

Booth #3647 Booth #3679 Booth 3684 JBJ DISTRIBUTING/ NATRATEC TRACE PRODUCE VEG-LAND INTERNATIONAL, LTD. Nyssa, OR Fullerton, CA Katzrin, Israel An innovative online account-based Veg-Land (JBJ Distributing) is a USDA Natratec develops natural solutions container traceback system incorpo- certified organic supplier. Fresh-cut to increase fresh produce shelf life — rates maps, photos, videos and docu- organic programs for foodservice and reducing spoilage, increasing profits mentation to the place of origin. retail can be customized to specific and ensuring freshly picked fruits and Complements traceability standards needs. We provide value-added ser- vegetables retain freshness, taste and and works to reduce the effects of vices such as consolidation, cross visual appeal. product recalls. docking, repack and over-wrap.

SEPTEMBER 2008 • PRODUCE BUSINESS 119 Floral Aisle-by-Aisle Booth Review Booth #112 Booth #116 PHOTO COURTESY OF PMA FRESH SUMMIT SILVER MOUNTAIN SUNSHINE CHRISTMAS TREES GROWERS, INC. Sublimity, OR Lakeland, FL Your customers expect you to be the Passionately in busi- AISLE 100 expert when it comes to Christmas ness since August 1986, Sunshine trees. Let Silver Moun- Growers is a wholesale contract grow- tain Christmas Trees er of unique, high-quality blooming make you look good potted plants, foliage and outdoor by supplying you with landscape material. See us for bed- fresh, elegant and ding plants, dish gardens, hanging sculptured trees your baskets, herbs and vegetables, customers will love! perennials and poinsettias. We have great products and a great story!

Booth #150 & 859 Booth #184 ALDERSHOT OF THE ELITE BOUQUET NEW MEXICO, INC. Miami, FL Mesilla Park, NM Located in the heart of Miami, Elite With more than 22 acres in produc- also has four other U.S. locations cov- tion near Las Cruces, NM, we are a ering the surrounding regions of New quality grower of potted blooming Jersey, Chicago, Denver and Los and foliage plants. Our specialties Angeles. Elite’s primary imports are include mums, kalanchoes, mini roses, roses, spray roses, gerberas and begonias, alstromeria. See Elite for cyclamen, bouquets, consumer bunch- poinsettias es, cut greens, fresh and Easter arrangements, grower lilies. bunches, fresh cut and spe- cialty cut flowers.

Booth #236 Booth #278 Booth #369 Booth #401 MEI SPECIALTY DECOWRAPS FLORIST TRANSWORLD GALLERIA REFRIGERATION Miami, FL DELIVERY (FTD) FARMS & FIXTURES Since 1999, DecoWraps has become Downers Grove, IL Miami, FL LaGrange Park, IL a leading supplier of distinctive pack- Florist Transworld Delivery will high- Galleria Farms is a solution and ser- AISLE 200 Retailers will find a wide choice of aging options for all levels of fresh AISLE 300 light “Flowers that Get Results.” See AISLE 400 vice provider of premium floral prod- portable floral display units. Our flowers and potted plants. We offer FTD Loyalty Bouquets, FTD Color ucts to mass retailers and supermar- newest “Bouquet Spider” expands to prompt service, simplified logistics Your Life Bouquets, eco-friendly and kets nationwide. Our team of employ- display from one to five buckets. MEI and competitive pricing. sustainable bouquets and consumer ees has a combined experience of portable display fixtures are not only Our custom-made bunches, FTD Tropical Bouquets and over 90 years in the floral industry. We easily transportable but also flexible, orders are attended to FTD Codified Arrangements. Also see are one of the largest growers of sturdy and easy to assemble and with the highest level of merchandising solutions and demon- chrysanthemums and specialty flow- store. Several units can be cus- integrity. Please contact strations of the FTD education and ers in the world, with over 100 tomized in finish to match decor. any of our offices for assistance. training programs. hectares in production.

Booth #509 Booth #755 Booth #758 Booth #761 WILLOW SPECIALTIES MICKY’S MINIS POTTER, INC. THE SUN VALLEY GROUP Batavia, NY FLORA Bryan, OH Arcata, CA We import and distribute baskets, EXPRESS Potter Inc. specializes in Maximize sales and create excellent glass, ceramic and pottery items as Millstadt, IL products to enhance super- floral experiences for your customers AISLE 700 AISLE 500 well as tin and iron products. Our Micky’s Mini will show our year-round market floral department sales. Our by offering our premium cut flowers products are used in the floral, super- line of miniature potted plants, hand-tied bows, which are U.S.-made, grown in California. In addition to market, packaging, home décor and including our popular mini-poinset- potted upgrade options and corsage consumer bunches, specialty cut flow- garden industries. Distribution pro- tias, new “All Dressed Up” minis and elements provide gift-ready items, ers and California-style bou- grams, including UPC markings, are the rest of our dazzling miniature quickly and efficiently, in traditional quets, we offer organically custom created for the perfect fit. plants. Plus, you will see several new and upscale designs. Potter Inc. — grown cut flowers. Sun Val- Celebrating 80 years in the container mini-plants and new accessories that your complete, year-round floral ley’s farms and crops are all business, we are family owned and you will not want to miss! upgrade source. Visit us at booth VeriFlora Certified. Ask about operated. #758. our year-round tulip program!

Booth #885 Booth #1051 Booth #1101 Booth #1275 TOTALFLORAL LLC CHANTLER PACKAGING TEMKIN FLORAL Homestead, FL Mississauga ON Canada INTERNATIONAL, INC. 1200 CONSULTING GROUP TotalFloral is an award-winning, pro- For better arrival of cut flowers Payson, UT Spokane, WA fessional service firm devoted to the shipped long distances, use PrimePro Made from renewable resources, Floral Consulting Group is an ultimate AISLE AISLE 800 AISLE 1000 advancement of mass-market floral MAP film for extended freshness. AISLE 1100 Temkin’s NatureFlex produce bags resource for your floral business. As programs. TotalFloral’s unique busi- Available as bags, carton liner sheets |and floral sleeves are exciting, new seasoned sales, marketing and floral ness model provides clients with a and pallet covers. Eco- biodegradable solutions certified for professionals, we turn experience into resource-efficient way to build a nomical, easy-to-use and home and industrial composting. In profits. We are responsive, targeted dynamic floral program and rapidly also available in addition to flat bags and gusseted and results-oriented. We deliver com- grow their businesses. Discover how biodegradable formula. bags, Temkin’s NatureFlex line includes prehensive and clear plans to pro- TotalFloral’s leadership, innovation Boost your profits with the new EcoNOSU floral sleeves that duce more for and execution can accelerate the better arrivals using provide for drip-free transport of your business performance of your program! PrimePro film products. fresh-cut floral arrangements. — today.

120 PRODUCE BUSINESS • SEPTEMBER 2008 Booth #1286 Booth #1291 Booth #1717 Booth #2031 ARMELLINI INDUSTRIES ENCORE FLORAL THE MARCO COMPANY KERRY’S NURSERY, INC. Palm City, FL MARKETING Fort Worth, TX Homestead, FL Since 1945, Armellini subsidiaries Walker, MI Marco specializes in designing and We create profit opportunities with have offered total floral logistics. Our Fresh. The heart of our business is the manufacturing innovative and effec- the most fashion-forward AISLE 1500 company-owned equipment trans- freshness your customers expect. We tive fixtures at a competitive cost. AISLE 2000 products featuring the ports floral products from California will showcase a Manufacturing capabilities include highest-quality orchids, and Florida across the United States. selection of color- wood, laminate, metal, wire and plas- bromeliads and indoor All trailers are decked and tempera- coordinated bou- tic, allowing Marco to manufacture tropical foliage. Visit our booth and ture controlled quets, and we nearly any product in-house. These discover how our compelling, value- at 38° F to have bulk flowers, comprehensive production capabili- minded living arrangements can be maintain the floral accessory items, arrangements, ties allow quicker turnaround from the solution you have been looking cold chain. We floral hard goods and fresh-cut flow- design to project for to grow your floral department. offer customs ers. We are importers and our Miami completion, higher clearing, over-the-road, air reservation and Dallas facilities enhance our dis- quality and lower and freight brokerage services. tribution opportunities nationwide. costs to our clients.

Booth #2031 Booth #2118 Booth #2300 2445 SOMERSET ORGANIC FARMS SAMBRAILO PACKAGING NURSERYMEN’S NOW PLASTICS Naples, FL Watsonville, CA EXCHANGE East Longmeadow, MA See our new certified organic herb 6- Sambrailo Packaging is a third-gener- Half Moon Bay, CA Now Plastics provides a wide variety

pack - great for floral departments. ation, family-owned company that has Nurserymen’s Exchange AISLE 2400 of standard and customized designer AISLE 2300 Green-thumb types like the novelty AISLE 2100 served the produce and floral indus- is one of the largest wholesalers of sleeves, sheets and roll film to and convenience. Cooks enjoy grow- tries since 1923. With eight locations indoor plants, tropical foliage and enhance the appearance of your bou- ing and using the herbs and other in California and Mexi- decorative accessories, servicing quets. Choose from an assortment of consumers like receiving the grow kits co, we have built our retailers nationwide. Our horticul- sleeve sizes and styles including clear, as gifts. The handled go- reputation on service, tural excellence and inspired straight-edged, scallop-edged, sealed packs feature tomato quality and innova- design is evidenced in every one of bottom or a hybrid. Sleeves can also plants or basil, parsley, tion. Visit Fresh Sum- our products. For over 67 years, be micro-punched or UPC coded. oregano, dill, cilantro, mit Booth 2118 to see retailers have come to expect rosemary and chives. our full line of pro- exceptional quality and value under duce and floral packaging. our BloomRite brand.

Booth #2453 Booth #2530 Booth #2944 Booth #3142 KES SCIENCE & INGERSOLL-RAND SCIENTIFIC CERTIFICATION BEDFORD TECHNOLOGY COMPANY SYSTEMS (SCS) INDUSTRIES Kennesaw, GA Hamilton, Bermuda Emeryville, CA For years, Bedford has NASA-developed AiroCide® PPT Air Ingersoll-Rand introduces new envi- SCS establishes strived to find tagging AISLE 3100 Purifying Technology removes ethyl- AISLE 2500 ronment management system (EMS) AISLE 2900 internationally rec- solutions for our cus- ene and kills mold, fungi and bacteria surface and air sanitation technology ognized certification tomers. We now have biodegradable without using chemicals or ozone. that improves product quality and standards and programs. VeriFlora options available at a very competi- Vase-life extension begins in the cold extends the shelf life of perishable certification recognizes outstanding tive price. This biodegradable chain with purified air from seed floricultural products. EMS reduces efforts in the cut-flower and potted- polypropylene material is FDA propagation to the retailer. ethylene and botrytis and slows the plant industries to grow and deliver approved for food packaging and is maturation process, resulting in bet- flowers that meet the highest stan- fully recyclable. It can be incorporated ter overall health indicated by more dards for the environment, sustain- into our ElastiTag, Snap-A-Tag or Bib vibrant colors. ability, social responsibility and quality. Tie products.

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Booth #3671 POLYMER LOGISTICS Riverside, CA Polymer Logistics provides merchan- dising units including RPCs, bins, pal- lets, dollies, crates, field totes, plant racks, floral retail display units, etc. Display-ready from factory to retail means significant reductions in replenishment and transportation costs while increasing in-store avail- ability. Our units stack safely when full, and nest and fold when empty to maximize truck space.

PHOTOS COURTESY OF PMA FRESH SUMMIT SEPTEMBER 2008 • PRODUCE BUSINESS 121 LGS Specialty Sales, Ltd. 718-542-2200 • 800-796-2349 • Fax: 718-542-2354 www.lgssales.com

Visit us at the PMA Booth #2747 Reader Service # 99 M E R C H Five Ways To Better A N D I Merchandise Potatoes S I Increase spud sales by stocking the right mix, N creating knock-out displays and promoting frequently. G

BY CAROL M. BAREUTHER, RD R E one are the days when the low- V carb craze led to plummeting I potato sales. In today’s reces- sionary economy, the potato is E a relative value compared to W Gother items in the produce department and it has regained its wholesome, healthful, comfort-food appeal. According to Marvin Lyons, produce director at Bigg’s, an 11-store chain based in Milford, OH, and a subsidiary of Eden Prairie, MN-based Supervalu, Inc. “In a weak economy, more people are opting to cook at home rather than eat out. This could mean greater sales of sta- ples such as pota- toes at retail, but we’re not seeing that yet.” Attract consumers with neat and well- In 2007, the stocked displays. potato category contributed 5.7 per- cent to total pro- according to Mac Johnson, president and duce department CEO, Category Partners, LLC, a Denver CO- sales, down from based joint-venture marketing organization 5.9 percent in 2006, formed in April by Wada Farms Marketing according to data Group, LLC, Idaho Farms, ID, and Farm supplied by the Per- Fresh Direct, LLC, Monte Vista, CO. ishables Group, “They’ve been exposed to different varieties West Dundee, IL. of potatoes in the restaurant arena and now To nudge this want to try these at home. Retailers, such as percentage up and Whole Foods [Market, based in Austin, TX], take advantage of a Wegmans [Food Markets, Inc., based in strong fall potato Rochester, NY] and Central Market [owned market, retailers by H.E. Butt Grocery Company, based in should practice San Antonio, TX] are offering this variety smart merchandising techniques, such as tality. “Stacking them high and offering deep and leading the way.” offering consumers a several sizes and a discounts aren’t the ways to maximize mar- Nationwide, Russets still rule the catego- good mix of varieties. Tim O’Connor, presi- gins and profits.” ry, notes Seth Pemsler, vice president of dent and CEO, U.S. Potato Board (USPB), retail, Idaho Potato Commission (IPC), Denver, CO, recommends retailers stop mer- 1. STOCK THE RIGHT MIX Eagle, ID. “However, they have been declin- chandising potatoes with a commodity men- Consumers want to see more choice, ing in sales as a percent of the category

SEPTEMBER 2008 • PRODUCE BUSINESS 123 M since the mid-’70s and ‘80s. The real oppor- have a very promising variety, the Purple E tunity lies in not moving away from Russets Majesty, which has great potential.” but in adding more specialty potatoes to the Flavor, texture, color, greater shelf life, R mix.” reduced risk of sprouting and greening and C Randy Bohaty, produce director, B&R faster cooking time “are other attributes growers are breeding for in potato varieties H Stores, Inc., a 15-store chain based in Lin- coln, NE, and operating under the Super of the future,” adds Pemsler. A Saver and Russ’s Market banners, says, “Rus- N sets are No. 1 for us, but Reds, Whites, Yukon Golds, Purples and Fingerlings are all D D gaining and adding incremental sales. Con- “The first quarter of I sumers will buy with different purposes in 2008 saw a 6 percent S mind and buy more than one type.” What type of potatoes consumers buy in increase in dollar I a particular market “depends on demograph- sales for 10-pound N ics and region of the country,” explains Ken Gray, vice president of sales and marketing, bags. I think the G Bushwick Commission Co., Inc., Farming- effects of a sluggish dale, NY. “For example, Round Whites have a R great niche market on the East Coast.” economy and rising Ted Kreis, marketing director, Northern E Plains Potato Growers Association (NPPGA), food prices are at V East Grand Forks, MN, adds, “Red potatoes play here.” are slowly but steadily increasing in market I share, especially the B-size or smaller due to — Tim O’Connor E their creamy texture and tender skin. Even U.S. Potato Board W the skin on the A-size is palatable. Red- skinned potatoes are 95 percent of fresh- market potato sales in our region.” Yellow-fleshed and red-skinned varieties 2. OFFER MORE BAGS “continue to experience growth within the Bag sales of potatoes exceed bulk sales, potato category as do specialty potatoes,” according to Nielsen Scantrack and the Per- reports Brad Brownsey, trade representative, ishables Group’s FreshFacts data supplied by Prince Edward Island Potato Board, Char- USPB in its report, Supermarket Sales 2000- lottetown, PEI, Canada. 2007. In 2007, bagged potatoes represented Robert Schueller, director of public rela- 73.4 percent of total fresh dollar sales of tions, Melissa’s/World Variety Produce, Inc., potatoes and 82.6 percent fresh pounds, Los Angeles, CA, notes Dutch Yellow pota- compared to 26.6 percent for bulk dollars toes and Fingerlings “are our two best-sell- and 17.4 percent bulk pounds. ing specialty potatoes. In the Fingerlings, “There are definitely those consumers Russian Banana is the most popular. French, who like to pick out their own potatoes or Purple Peruvian and Ruby Crescent are also only want one or two at a time,” notes Pem- in demand and available year-around in sler. “Retailers typically merchandise larger conventional and organic.” potatoes in bulk and then charge a premi- Bigg’s Lyons has observed considerable um. By contrast, bagged potatoes are more growth in sales of Fingerlings and other spe- of a value and they represent the majority of cialty produce “especially in our high-end sales because they are a better deal.” stores. I’d have to say this success is spurred According to the USPB report, the aver- by things like the TV Food Network, where age price per pound for bagged potatoes in customers are exposed to different varieties 2007 was 45¢ compared to 77¢ for bulk. and learn what they can do with them.” “We’ve seen a greater preference for 5- In general, “Organic potatoes are avail- pound bags in recent years, driven by the able, but they’re not a driving force in sales,” fact that there are more 1- and 2-person according to IPC’s Pemsler. “The challenge households,” states USPB’s O’Connor. At the is that they don’t last as long as convention- same time, “The first quarter of 2008 saw a 6 al and, therefore, are subject to greater percent increase in dollar sales for 10-pound shrink at retail.” bags. I think the effects of a sluggish econo- 6

# Varietal development is ongoing. “In the my and rising food prices are at play here.” future, potato varieties will have unique Russets are by far the most popular nutritional attributes, such as higher levels bagged potato, representing 60.4 percent of of antioxidants,” predicts Jim Ehrlich, execu- dollar sales and 69.8 percent of pounds in tive director, Colorado Potato Administrative 2007, according to the USPB report. Howev-

Reader Serv i ce Committee (CPAC), Monte Vista, CO. “We er, other varieties are also sold in significant

124 PRODUCE BUSINESS • SEPTEMBER 2008 bagged quantity. In 2007, 19.1 percent of three to six SKUs.” important to sign a display of this kind well bag sales were Red, 10.4 percent White and At B&R Stores, all potatoes are displayed so consumers know what’s available and 6.8 percent Yukon Gold. Organic potatoes together in one destination. “It makes it eas- how much it costs.” represent only 0.8 percent of bagged dollars. ier to trade consumers up to other varieties Go one step beyond “by signing a display A trend toward more combination poly- in the category, especially higher-margin with suggested uses,” suggests John Pope, mesh bags for potatoes is growing. “There’s a specialty potatoes,” notes Bohaty. vice president of sales and marketing, Moun- perceived added value in this style pack that One of the biggest challenges for retail- tainKing Potatoes, Houston, TX. “For exam- allows for more information on packaging on ers “is working within the space allotted in- ple, red-skinned potatoes with fish, gold- the poly side and breathability from the store for potatoes and yet increasing the fleshed potatoes with poultry and Russets mesh,” notes Category’s Johnson. “Kroger number of items offered,” explains Clifford with beef. Eighty-five percent of potato pur- [Co., Cincinnati, OH], for example, has just Corwin, marketing and sales manager, Skag- chases are planned — the rest are impulse.” switched all of its private-label bagged pota- it Valley’s Best Produce, Inc., Mt. Vernon, Ryan Bybee, sales manager, GPOD of toes to a poly-mesh combination.” WA. “One way to do this is to offer smaller Idaho, Shelley, ID, agrees, adding, “Use sign- Cost can be a factor. “Mesh is three to amounts of a greater number of items. It’s age that tells what each variety is good for.

“Keep potatoes fresh and inventory turning. Handle with care. Potatoes are not a hardware item.”

— Brad Brownsey Prince Edward Island Potato Board four times higher in cost than poly,” states Paul Dolan, general manager, Associated Potato Growers, Inc., Grand Forks, ND. Pemsler has observed an assortment of innovations in packaging. “For example, some shippers now offer fresh potatoes that are washed and bagged in a microwave-safe bag for easy steaming.” “Some shippers are experimenting with adding seasonings to these value-added steam-cooked potatoes,” notes Category’s Johnson. “This adds even more conve- nience, just as we’ve seen the bagged-salad category move beyond just lettuces to include other items, such as dressings and croutons.”

3. CREATE DESTINATION DISPLAYS Women making dinner decisions for their household are purchasing more than 80 percent of fresh potatoes, explains CPAC’s Ehrlich. “They’re concerned with taste, quality, nutrition benefits and value. Ideally, a potato display should be catego- 69

rized by segment so value decisions are # easily made. The display should offer numerous varieties and colors.” Offer consumers a robust category of selections, advises USPB’s O’Connor. “Some

retailers carry up to 20 SKUS, others only Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 125 M E Looking R C Ahead H verall acreage of new crop product is estimated down any- A O where from 7 to 20 percent this N year. “Farmers are able to grow more potatoes per acre and yields are up, D D but anything can happen in agriculture I when it comes to weather,” notes Mac S Johnson, president and CEO, Category Partners, LLC, Denver CO. “So, that’s I always an uncertainty.” N Higher prices for wheat and corn may make it more attractive for potato G farmers to grow them instead, suggests Tim O’Connor, president and CEO, U.S. R Potato Board (USPB), Denver, CO. “Wheat and corn are lower-cost crops E For example, Great For Baking next to Rus- merchandising potatoes “either with signage and farmers can lock in a price on con- V sets or Great For Potato Salad above the or with actual product,” notes Johnson. tract, whereas they take all the risk up Reds. I think this would make a huge differ- If store policy permits, “Convenient and front on potatoes.” I ence in sales.” healthful recipes should be a prominent fea- According to Paul Dolan, general E ture of the potato display,” adds Ehrlich. manager, Associated Potato Growers, W “Placing bins of potatoes in the meat depart- Inc., (APG) Grand Forks, ND, “One of ment has proven to be very successful. Tie- the biggest current challenges is in promotions with meat marketers and dis- increased transportation costs to ship “Keep potatoes playing potatoes with logical meal partners potatoes to market.” Coming off a sum- generate creative ideas with shoppers.” mer of record-high pricing, “It’s impor- fresh and inventory Perfect toppings to cross-merchandise tant for retailers not to price gouge.” turning. Handle with potatoes include “sour cream, yogurt, With supply pipelines filling with butter, chives, bacon bits, various seasonings new-crop product, “It’s also crucial to with care. and fresh herb toppings,” according to Scott keep prices at a level where producers Potatoes are not a Phillips, director of sales, Nonpareil Corp., make a profit,” he adds. “That means Blackfoot, ID. retailers aren’t going to be able to get hardware item.“ IPC has undertaken cross-merchandising the same prices they got for potatoes in a big way during the past few years. in the past.” pb “There’s always the problem of going inter- — Brad Brownsey department and the produce guy or meat Prince Edward Island guy, for example, getting credit,” explains Potato Board Pemsler. “For this reason, and to be most held in March and April provided a 55¢ IRC effective, cross-merchandising across for Fresh Gourmet toppings and Idaho pota- departments has to be a corporate objective. toes. The promotion featured a freestanding The rewards are increasing total store sales, 6-case shipper display of toppings, a colorful not just sales in one department.” header card that read Give Your Potatoes In the future, “I believe information con- This past fall, IPC teamed up with St. Extra Crunch and an on-pack booklet featur- sumers will desire seeing is locally grown Pauli Girl Beer, based in Bremen, Germany, ing four recipes that incorporated both top- choices and information about sustainable and offered a $2 instant redeemable coupon pings and potatoes. practices and energy cost,” states Ehrlich. (IRC) for the combined purchase of 5 IPC’s Potato Lover’s Month display con- Be sure to maintain potato displays well, pounds of Idaho-potato products and beer. test in February also features many ways for recommends PEI’s Brownsey. “Keep pota- The promotion was tied in with an Oktober- retailers to cross-merchandise potatoes and toes fresh and inventory turning. Handle fest recipe for twice-baked Idaho potatoes related ingredients. with care. Potatoes are not a hardware item. with sausage and cheese. Maintain top quality by immediately remov- Similarly, Albertsons, the Boise, ID-based 5. PROMOTE OFTEN, ing any substandard loose and/or packaged chain with 529 stores and a wholly owned BUT NOT DEEPLY potato from the display. If your store is not subsidiary of Supervalu, teamed up with IPC Potato sales appear equally strong year- open for business 24 hours, cover potatoes to offer a free 5-pound bag of Idaho Russet round thanks to 12-month availability and at the close of business to reduce greening.” potatoes with the purchase of a Hormel nat- versatility. According to USPB’s Supermarket ural-crusted pork fillet to consumers who Sales 2000-2007 report, average bagged sales 4. CROSS-MERCHANDISE used its Preferred Saving Card. accounted for 25.5 percent, 24.3 percent, There’s a world of opportunity for cross- An IPC cross-merchandising promotion 23.3 percent and 26.9 percent in each of the

126 PRODUCE BUSINESS • SEPTEMBER 2008 Record High Prices, Low Supplies everal years ago, there was a potato glut, the low-carb craze kept consumers from buying, and prices fell as low as 69¢ for a 10-pound bag. Farmers went out of busi- S ness and acreage reductions ensued. This year, the perfect storm has occurred, explains Seth Pemsler, vice president of retail, Idaho Potato Commission (IPC), Eagle, ID. “Weather issues and less product in stor- age in major growing states, such as Idaho, Colorado and Wisconsin, have led to a historic dip in supply.” Some areas were virtually sold out, especially of the larger-sized potatoes, or shipping half of what they normally do by early summer, causing potato prices at retail to rise to record highs. The new-crop potato harvest has gotten off to a promising start, albeit a week or two late due to a cold wet spring, and supplies are filling in to meet growing consumer demand. “After years of declining potato sales at retail, the economy and high gas prices are causing consumers to eat at home more rather than dining out. This, and the fact that potatoes are still a relatively good value — even priced at $3.49 for a 5-pound bag — has led to an increase in fresh potato sales at retail this year.” pb four quarters. Pound sales show similar and in the consumer’s mind,” according to equality in percentages. Category’s Johnson. This, however, doesn’t mean potatoes Consumer education in ads is also effec- shouldn’t be regularly promoted. “We place tive. “A well-planned, ad-promotional effort some type of potato in our ad nearly every featuring convenient potato recipes com- week,” reports B&R’s Bohaty. bined with the new convenient packaging At Bigg’s, “We do a lot of bag promotions available today should really get attention,” in the fall when the weather gets cooler and concludes CPAC’s Ehrlich. pb people are cooking more,” explains Lyons. “Russets, Reds, Yukons and Fingerlings are all on ad around Thanksgiving, Christmas and New Year’s. This is when consumers are looking for their regular mashed-potato fixings as well as something new and differ- ent. Come summer, we’ll put Reds on ad around the Fourth of July for potato salad.” Potato ad sales create anywhere from 20 to 40 percent of the total potato sales in most stores, notes NPPGA’s Kreis, “so it is important to optimize the ads for increased sales and profits that can benefit both the retailer and supplier.” USPB’s O’Connor says it’s ideal to pro- mote potatoes an average of nine times each quarter. Offering more than one potato SKU that hits two different meal uses or occasions at the same time is most effective. “For example, Russets and Reds or a Red and Yellow or bulk and bag. Pricing should be good, but not drastically deep.” Deep discounts are definitely not neces- sary around the winter holidays. According to the Perishables Group data, the top week for national potato dollar sales is the run-up 132 125 # to Thanksgiving. Conversely, the lowest # sales week of the year for potatoes is the week after Thanksgiving. “A modest price reduction at this time of year has the benefit of maintaining a mar- See us at PMA Booth #2310 Reader Serv i ce gin as well as keeping potatoes out there Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 127 M E R C H A Build Profits With Pears N D Merchandising opportunities call for pear-ripening education. I S BY BARBARA ROBISON I N G significant number of U.S. food shoppers are not purchasing R fresh pears, despite the fact that pears are familiar to most E Americans. “This is unlike V ACanada, where a much larger share of the I population buys and enjoys fresh pears,” E reports Dennis James, director of market- E ing, Pear Bureau Northwest (PBN), Mil- W waukie, OR. “Pears are now being merchan- dised year-round and are no longer a sea- sonal fruit. More varieties are also available, so merchandising oppor- tunities are there. It’s primarily a matter of education.” Howard Nager, vice president of marketing, Domex Superfresh

Growers, Yakima, WA, says “Many Photo courtesy of Pear Bureau Northwest consumers have had a poor pear- Although Americans are familiar with eating experience because they pears, they need to be educated about don’t know how to handle them. the fruit’s handling and ripeness. Retailers that understand how to store, ripen and merchandise rooms in 41 grocery distribution centers. “All pears can provide the consumer of our pears are conditioned so customers with a terrific eating experience.” can have better-tasting fruit when they get Studies indicate most con- home,” explains Gary Campisi, director of sumers are looking for pears they quality control. “Pear sales have continued can take home and eat within a to increase with our conditioning program. Photo courtesy of CF Fresh day or two. “Markets have shown Consistency is the reason we brought the sales volume increases of 10 to 20 percent ripeness for consumers,” reports Dennis E. conditioning program in-house. Consumers when they are on a pear ripening program,” Kihlstadius, consultant, Produce Technical know when the new pears arrive from Cali- reports Roger Pepperl, marketing director, Services, Bemidji, MN. Kihlstadius consults fornia, and if they get a juicy, good-tasting Stemilt Growers, Inc., Wenatchee, WA. for PBN and CPAB. “When a pear is not piece of fruit at the beginning of the season, “The pear has been carefully handled ready to eat and consumers don’t know how they will come back to buy more.” from the time the tree flowers until the fruit to ripen it at home, repeat sales are unlike- Pear conditioning strategies on the sup- is harvested,” notes Chris Zanobini, execu- ly. If the juice and taste profile of the pear plier’s side vary. Different technologies and tive director, California Pear Advisory Board are right, consumers will purchase more.” conditioning of different pear varieties are (CPAB), Sacramento, CA. “Once it reaches Fresh pear conditioning programs have available to the retailer. the market, the retailer needs to continue increased dramatically in the past few years. Rainier Fruit Company, Selah, WA, sees the care, with training and expertise in han- Suppliers conduct some and retailers con- tremendous opportunities for the ripe-initi- dling and merchandising, to assure a won- duct others. All are aimed at providing con- ated pear program, especially for the D’An- derful eating experience.” sumers with a piece of fruit that exemplifies jou variety. Rainier uses ripening rooms the fresh pear’s flavor and texture and builds from Blythewood, SC-based Thermal Tech- RIPENING PROGRAMS repeat sales. nologies, Inc. in its program. “The challenge Pears do not ripen on the tree, which Wal-Mart Stores, Inc., Bentonville, AR, in marketing D’Anjou pears is it is visually “makes a difference in how the fruit should has had a pear conditioning program for at difficult to see a color change as the fruit be handled and brought to the right stage of least five years. It now has pear ripening ripens, unlike the Bartlett pear,” explains

128 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 67 M Suzanne Wolter, director of marketing. “With About 80 to 90 percent of consumers at a ripeSense sensor inside the clamshell E Bartletts, the ripening program works best Haggen, Inc., a Bellingham, WA-based chain package, consumers can tell exactly how early in the season. The D’Anjou season is with 33 stores, want ripe pears but don’t ripe a pear is and when it is ready to eat,” R much longer, extending from September to know how to ripen them, according to Lee explains Neil Galone, vice president of sales. C June. A ripe-initiated D’Anjou is sweeter, Reynolds, director of produce. “Bartletts are “This is especially helpful with more subtle still the favorite, but consumers aren’t even color-changing varieties, such as the D’An- H juicier and less grainy than a D’Anjou allowed to ripen on its own.” sure about the yellow color or how red a red jou. Many of our pears are still sold in bags A Stemilt plans to add two new pear-pack- pear variety should be. Ripeness of the Bosc and bulk, but the ripeSense clamshell is N ing lines this summer and has had a pear- is the hardest to tell, although it is perhaps gaining in popularity.” conditioning program for five years. “Our one of the best varieties.” Domex also uses ripeSense sensors in its D D retail customers want consistency,” reports To help consumers tell when a pear is packaging “to provide product knowledge I Pepperl. “With our ripening program, we ripe, Diamond Fruit Growers, Inc., Hood that speaks to consumers,” reports Nager. S can provide our customers pears with the River, OR, offers its customers the unique Another approach to help assure con- same pressure week in and week out.” ripeSense packaging technology. “By placing sumer satisfaction is the CMI Pocket Pro I card from Columbia Marketing International N (CMI), Wenatchee, WA. “The 3-by-5-inch card, containing information about pear G G ripeness, is waterproof and fits into a retail clerk’s pocket, notes Bob Mast, vice presi- R dent of marketing. “One side has pear infor- mation and the other apple information.” E V I “Packaging and E W merchandising pears is up to the retailers. We. . . customize supplies to fit their particular needs.”

— Rob Peterson Duckwall Fruit

Rob Peterson, vice president, marketing and export, Duckwall Fruit, Hood River, OR, believes ripening programs are instrumental in moving more fruit. “Packaging and mer- chandising pears is up to the retailers. We work with our customers on handling and merchandising ideas and then customize supplies to fit their particular needs.” Some suppliers precondition Bartletts only. “We precondition the early Bartletts and have seen better movement and more repeat purchase orders for the pears,” according to Larelle Miller, sales representa- tive, All State Packers, Inc., Lodi, CA . Bengard Marketing, Inc., a Kelseyville, CA-based fresh pear sales agent, uses CPAB to provide its retailer customers with pear 73

# ripening information. “Preconditioning pears at the packing house is done at customers’ requests, which have been increasing,” states Ron Gill, operations manager in the compa- ny’s Dominguez Hills, CA, sales office. Ben-

Reader Serv i ce gard also handles Chilean and Argentinean

130 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 75 M pears, which are not preconditioned. E Pears To Take MERCHANDISE R ORGANIC PEARS Center Stage At Epcot C Organic pear production has increased. BY AMY SHANNON H Organic pears are more difficult to grow because fertilizer is needed to keep the tree SA Pears will be fea- A healthy and conventional nitrates can’t be tured Sept. 26 to Nov. N used. After the three years it takes to gain U 9 at the 13th annual certification, the size of organic pears tends Epcot International Food & D D to be smaller than the conventional pears. Wine Festival at the Walt I “There are dramatic changes in cultural Disney World Resort in S techniques when producing organic pears,” Orlando, FL. The festival, notes CPAB’s Zanobini. “With the long grow- which showcases cuisine I ing season, pears are involved in three to from around the globe, will N four life cycles of pests, which complicates feature a fully interactive the growing of organic varieties.” pear-themed country fair in G “It’s true we have encountered some the theme park’s American problems in the production of organic pears, Adventure pavilion. Photo courtesy of Pear Bureau Northwest R but due to sustainability and environmental Growers from Oregon and Washington guests of all ages,” he notes. “The Epcot movements, retailers have shown an will serve as guides, teaching visitors International Food and Wine Festival is E increased interest in offering their con- about USA Pears, which are favorites in world renowned, and the famous Disney V sumers organics,” states Gene Loudon, direc- the United States and a key Northwest Imagineers certainly pulled out all the tor of marketing, Dovex Fruit Company, Pacific export, according to Kevin Moffitt, stops when they created Pearville.” I Wenatchee, WA. “Currently, our company is president and CEO, Pear Bureau North- The fair will also feature carnival-like E marketing 60 percent of the pear crop as west (PBN), Milwaukie, OR. “The variety, games for the whole family, culinary W organic, with an additional 10 percent plus in flavor, diversity and nutritional impor- demonstrations and educational activi- transition. To continue building sales, it is a tance of pears will be presented in a way ties. A kiosk will make fresh USA pears matter of educating consumers about pur- that is designed to engage and enlighten available for purchase. pb chasing organic pears. It’s not just how to 60 38 # # Reader Serv i ce Reader Serv i ce

132 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 103 M select and handle but why the organic fruit E is important.” CF Fresh, Sedro-Woolley, WA, markets Build Sales With R organic pears, with year-around supplies C provided from California, Washington and Pear Promotions Argentina. Matt Roberts, sales and market- H BY BARBARA ROBINSON ing coordinator, sees potential for organics A ear marketers have found certain sentatives to the 15th Annual Fruit N types of promotions help build Ripening & Ethylene Management P the category’s sales. Running one Workshop, scheduled for April 28-28, D D Many pear varieties retail ad a month from September 2009 at the University of California at I are available, through December and holding a “Pear- Davis, Davis, CA. He also suggests S orama” with four or five pear varieties holding supplier-provided seminars on offering retailers on ad in the fall can be particularly pear ripening for produce and quality- I opportunities to effective, suggests Roger Pepperl, mar- control personnel. N keting director, Stemilt Growers, Inc., Promoting the nutritional benefits of vary displays Wenatchee, WA. pears and how to include them in an G “Our research shows merchandising everyday diet can have a positive sales throughout the year. Bartletts along with some of the tree impact. “A challenge to the pear catego- R Red Bartletts, fruits during the summer months can ry is having adequate display space allo- build pear sales without cannibalizing cated on a consistent basis,” explains E Starkrimson, Red tree fruit sales,” offers Carolyn Becker, Denny Annen, president of sales and V Anjou, Seckel, marketing and national accounts man- marketing, Borton & Sons, Inc., Yakima, ager, California Pear Advisory Board WA. “To help achieve this as an industry, I Forelle, Taylor’s Gold, (CPAB), Sacramento. CA. “In Septem- we need to do a better job educating E Packham and Asian ber, merchandising Bartletts and one consumers on the health and nutritional W new-crop pear along with the tradition- benefits of consuming pears.” pears can add to the al apple displays builds total sales.” Columbia Marketing International Rainier Fruit Company, Selah, WA, (CMI), Wenatchee, WA, offers a multi- appeal of displays. provides retailers with customized POS purpose tote bag with nutritional infor- materials and red PLU stickers for its mation on pears and apples. It also preconditioned fruit. It also offers other includes an explanation of how to with demand exceeding supplies. “From informational materials, training semi- check the neck of pears for ripeness. Argentina, during the spring, we market an nars and tours of its ripening rooms. Whatever merchandising approach Italian pear variety, the Abate Fetel. It has Dennis E. Kihlstadius, consultant, a retailer prefers, it is important to potential, especially in markets such a Produce Technical Services, Bemidji, work closely with pear suppliers on Whole Foods [Market, based in Austin, TX].” MN, recommends retailers send repre- pear ripening education. pb

OFFER MIX OF VARIETIES The Bartlett is still the No. 1 pear prefer- ence of all consumers, according to Zanobi- ni. “It is an excellent piece of fruit, but the motion with an eye-catching bag tied into VA, produces certified organic Asian pears industry continues to develop other pear the characters in the popular Cars movie,” and finds interest not only in Asian commu- varieties to tempt the consumer.” explains Mac Riggan, vice president market- nities but also among the general popula- The Comice pear is one variety that has ing, Chelan Fresh Marketing, Chelan, WA. tion, according to Paul Estabrook, an owner. gained interest. “Taste testing is an excellent “Among the pears, the Bosc will be repre- Imports of the Korean pear, a larger version way to introduce a new variety,” advises sented by Rusty Mater. We also have an of the Asian pear, have been building steadi- Luci Eisenhaure, commercial sales manager, attractive non-varietal tote bag that can be ly since its 1986 U.S. introduction. Bear Creek Orchards, Inc., a Medford, OR- displayed anywhere in the store.” “The Asian pear is in the market from based division of Harry & David Operations, According to Diamond’s Galone, the September to April,” reports HakSoo Kim, Inc., and wholly owned subsidiary of Shak- company recently planted the Concorde president, Korea Agro-Trade Center, Los lee Corp., Pleasanton, CA. “Whole Foods has pear, a juicy and sweet variety. “It is a rus- Angeles, CA. “It is sweet, juicy and thin- conducted effective sampling programs and seted pear that looks somewhat like a Bosc skinned with good color. While the primary created a video for our Comice pears.” but has a smoother texture. Its volume is markets are Asian, interest is growing Another variety gaining popularity is the limited now, but as its popularity grows, so steadily in Caucasian and Latino markets.” Bosc. “In-store demonstrations are a great will the availability.” Melissa’s/World Variety Produce, Inc., way to increase pear awareness, and the Many other pear varieties are available, Los Angeles, CA, handles the promotion of Bosc pear seems to be a favorite choice for offering retailers opportunities to vary dis- the Korean pears in the United States. “They demos we’ve seen, with the demand contin- plays throughout the year. Red Bartletts, come in a nice box, with each pear protect- uing to grow,” reports Denny Annen, presi- Starkrimson, Red Anjou, Seckel, Forelle, ed with a sock, which provides an attractive dent of sales and marketing, Borton & Sons, Taylor’s Gold, Packham and Asian pears can display,” notes Robert Schueller, director of Inc., Yakima, WA. add to the appeal of displays. public relations. “We offer merchandising “This fall, we will introduce a new pro- Virginia Gold Orchard, Natural Bridge, materials for promotional help.” pb

134 PRODUCE BUSINESS • SEPTEMBER 2008 How To Make Things Grow

Whatever your role in the produce industry, the key to a blossoming bottom line is knowledge. About major trends and developments, and the people behind them.... About new sales opportunities around the world.... New packaging and transportation technology.... New ideas in marketing and promotion.... New retail strategies.... New equipment and services.... New techniques for managing individual businesses, and their personnel, more efficiently.

And your Number 1 source for all of the above is PRODUCE BUSINESS, the industry’s only monthly business magazine serving all buying segments. And the most widely read of any publication in the field. If you’re not receiving every important issue, call to start your subscription without delay. It’s the only way to be sure you’re getting all the knowledge you need. And growing the way you should.

Call Today to Reserve Your Subscription 561-994-1118 Ext 109 www.producebusiness.com M E R C H A Leafy Greens Holding N D I S Strong And Growing I N Smart and innovative merchandising techniques G help boost sales of this nutritious category.

R BY LISA LIEBERMAN E V hippers and growers are constantly I revisiting the world of leafy greens E to meet the growing and changing E needs of consumers. In the past W few years, shippers have come up Swith mini cabbages, different lines of Asian- style salads, packaged collard, mustard and turnip greens, and new styles of conve- nience-oriented packaging. Even so, the cat- egory still has its fair share of challenges. The good news, though, is that overall con- sumption of leafy greens is on the rise. “The most important thing that’s happen- ing now in leafy greens is romaine leaf let- tuce,” explains Ray Clark, president, Leafy Greens Council, St. Paul, MN. “In 2008, the per capita consumption of romaine lettuce is 15.3 pounds.” It was 15.1 pounds in 2007, 15 pounds in 2006, and 8.4 pounds per per- Consumption of lettuces and cooking greens continues to increase. son in 2000, he adds. The growth in romaine could have some- thing to do with the surge in the popularity at elementary schools. This outreach still a percentage of consumers who have of Caesar salads in the late 1990s as well as appears to be having a positive effect on time to create their own salads. In the cate- the prevalence of salad bars and packaged consumer buying habits. gory of packaged salads, you’re seeing a lot greens, which often have romaine lettuce as Bruce Knobeloch, vice president of mar- of different blends that have come into the their main ingredient, Clark says. keting, River Ranch Fresh Foods, LLC, Sali- marketplace, such as variations of romaine, Spinach is a different story. Before the nas, CA, also has seen increases in demand. baby lettuces and spring mixes. We’re giving September 2006 E. coli scare, per capita con- “The general trend is that we’re continuing consumers a significant amount of choices.” sumption was 2.5 pounds in 2005. In 2007 to see growth in romaine and flat to slightly According to Mitch Ardantz, vice presi- and 2008, consumption dropped to 2.0 lower sales in iceberg,” he explains. dent of sales and marketing, BoniPak Pro- pounds per person. “But if you look at 2000 Victor Wong, produce manager, Howie’s duce Co., Santa Maria, CA, aside from pack- by comparison, consumption was 1.4 pounds Ranch Market, a single-store operation in aged items that go to foodservice customers, and in 1990 it was only 0.8 pounds,” Clark San Gabriel, CA, says leafy greens are sell- bulk items make up most of the company’s points out. “If you look at the whole picture, ing well. “The overall demand for leafy business. “I think bulk items and packaged we’re doing pretty well since consumption greens due to [food-contamination scares] items go hand in hand. They each have just about doubled in the past five years.” hasn’t changed. What’s changed is that there their place in the market, so bulk items Cabbage and head lettuce consumption seems to be more demand for packaged aren’t going away.” has remained relatively stable, he notes. product rather than bulk product.” It’s possible some of the specialty lettuces “The leafy greens category as a whole has Although River Ranch offers bulk leafy that have been introduced into packaged sal- not declined and has, in fact, had some good greens, the majority of its product is in ads over the past few years might find their growth,” reports Clark, who works with the value-added packaging, Knobeloch notes. ways into the bulk sections at retail. council to promote leafy greens nationally “We still do bulk products because there’s BoniPak produces Lollo Biondo, a spe-

136 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 86 M cialty green that normally goes into pack- keting manager, Growers Express, LLC, Sali- the packaged cooking greens near the bulk E aged salads for foodservice, Ardantz reports. nas, CA. “It has helped maximize their quali- items to create the association with the bulk “These specialty leafy greens have great tex- ty and freshness of products to shoppers.” items or among the cooking vegetables in R tures, and hopefully we’re going to be able Jan Berk, vice president, sales and mar- the display case to differentiate them from C to get some of our clientele to try them out keting, San Miguel Produce, Inc., Oxnard, the salads.” Donna Bundrick Griffin, coordinator of H in bulk.” CA, says bulk leafy, cooking greens make nice looking displays “given the large leaves marketing and promotions, Walter P. Rawl & A SMART DISPLAYS and the many shades of green and colorful Sons, Inc., Pelion, SC, suggests building an N Creating attractive leafy-green displays is stalks when including chards. attractive display that incorporates an array important whether they are bulk, packaged “Simple signage that promotes the excel- of colorful packaged and bulk greens. “It can D D or both. “As an ongoing effort, we conduct lent health values of these dark leafy greens be eye-catching and draws consumers to I research with our retail teams to better and simple preparation/cooking tips help to your department. Just make sure both [pack- S understand and maintain their leafy greens make greens more consumer friendly,” Berk aged and bulk] are neat and organized.” displays,” explains Mishalin Modena, mar- adds. “In a new market, it’s ideal to position Modena recommends merchandising I bulk and packaged greens with other salad N items so consumers can easily find them. “Departments can merchandise salad dress- G G ings, croutons and additional salad condi- ments near the lettuce to offer shoppers a R convenient spot to grab everything they need to make a salad. Some produce depart- E ments have been very successful in using a V promotional area dedicated to pulling together complete salad kits. One example I was taco night, where [the department] dis- E played all the condiments in one spot to W help promote usage ideas for consumers.” VALUE-ADDED AND SPECIALTY PRODUCT New types of salads are appearing at retail and foodservice. Recently, River Ranch introduced some new salad kit bowls, that include combinations of lettuce and cabbage in plastic bowls, Asian citrus dressing and other salad-making ingredients. The bowls come in single-serving and family sizes. “Consumers can just take the bowls out of the refrigerator, mix up the salads, eat them and throw everything away without having anything to clean up,” notes Knobeloch. Right now, the salad bowl mixes are being marketed under private labels in retail stores in the Northeast and Southwest, he adds. “These products aren’t nationally marketed yet, but if all goes well, we’ll be branching out. Every so often, the category goes through waves of new items and it seems we’ve been going through a lot of new items in a relative- ly short period of time.” Rawl recently introduced Nature’s Greens value-added leafy green products. “They’re packaged, washed, cut and ready for con- sumers,” explains Griffin. “All they have to do is cut and open the package.” In 2007, the Dallas, TX-based American Heart Associa- tion (AHA) certified Nature’s Greens collards 130

# with its heart check mark as a heart-health- ful food low in saturated fat and cholesterol. Fast-food restaurants are also trying to offer more healthful items. According to Janet Erickson, executive vice president of purchas-

Reader Serv i ce ing and quality assurance, Del Taco Restau-

138 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 83 M rants, Inc., Lake Forest, CA, the chain has E been offering salads with a combination of iceberg and romaine lettuces for the past two Mini Cabbages R years. When Del Taco promotes the salads C with POP materials, the salads sell especially ini cabbages could be hitting the home rather than eating out, Martin says. H well. “When we don’t promote the salads, marketplace soon. John B. Mar- Mini cabbages will make it much easier though, sales aren’t as good,” she says. “We’re Mtin & Sons Farms, Inc., Brockport, to put together meals at home without A starting to explore the possibility of adding NY, has planted about 20 acres of a new having a lot of leftovers to deal with. N two or three different salads to our menu to 1- to 2-pound cabbage that should be Another advantage of mini cabbages draw more attention to the category.” available at some retail stores later this is the taste. “We’re hearing that these D D People in other areas of foodservice are fall, according to David Martin, president. mini cabbages tend to taste a little sweet- I seeking more choices. Ande Manos, sales “The market for standard-sized cabbage er than full heads of cabbage,” he adds. S and marketing, Babé Farms, Inc., Santa is pretty much flooded now. This is some- This is his first year growing the mini Maria, CA, notes more demand for specialty thing we haven’t seen being done except cabbages, so he’s not sure what the cul- I leafy greens from chefs at white-tablecloth for certain areas of the West Coast.” tural challenges will be. “These are special N restaurants. “Chefs like to create their own Martin expects to sell limited supplies varieties of cabbage and they’re bred to salads fresh and try new and different of pre-packaged mini cabbages to select be small, so there are going to be certain G things. They want to serve something other East Coast retail stores in September. “For challenges with them, like closer spacing than the spring mixes people see at retail households with three to four people, it’s and tremendously more plants per acre R stores every day. That’s why baby head let- easy to use whole heads of cabbage, but than you would normally have with a tuces are so popular.” there are a lot of 2-person households out conventional type of cabbage,” he adds. E Babé Farms has seen an especially large there. It’s a lot easier if they can just take The mini cabbages will also be more V increase in demand of baby head lettuces home a small head of cabbage, use it up labor intensive, so input costs will be during the past five years, Manos says. They and then buy more when they need it.” higher than with standard sizes. Retail I are popular because of their size and tender, Mini cabbages could boost the whole prices will probably be higher and mini E sweet, mild flavors that appeal to consumers cabbage category, Martin says. “It’s a lot cabbages will probably be sold by the W and chefs looking for something different. more convenient for consumers if they head rather than by the pound. “We won’t Recently they’re showing up at specialty choose from different sized packages.” know until September how well the mar- stores, such as Trader Joe’s, a Monrovia, CA- With the economy slowing down, ket will receive the product,” Martin notes. based chain with 301 stores, Manos says. more consumers will be cooking more at “We’ll just have to wait and see.” pb “The general public is always looking for something different to try out. I always say that’s because the food networks on TV and packaged greens, reports Israel Canache, one’s trying to keep costs down, but the fact high-end specialty retail stores, such as sales representative. is retail prices are going up.” Whole Foods [Market, based in Austin, TX] He says the company “used to move a lot give people different ideas about food.” CABBAGE PRODUCTS of volume” with 2-for-$1 cabbage promo- Glory recently added cut cabbage cut in tions. “In the last three or four years, NEW NICHE the same dimensions as the greens to its though, people have begun buying cabbages Glory Foods, Inc., Columbus OH, which product mix. “We’ve been doing this for only by the pound. This can be hard for people has long been identified with canned foods, the past year-and-a-half and we have limited when they get to the checkout stand and has also tapped into the public’s demand for distribution in the Northeast and in the find they’re paying $5 for a cabbage.” new types of leafy greens. “We thought we’d South,” Allen says. “It’s very convenient for Tim Greene, president, Hollar & Green have a good opportunity moving into the people who just want to make a quick meal Produce, Co., Inc., Boone, NC, agrees selling fresh greens category,” explains Dino Allen, with some cabbage and sausage or cabbage cabbage is a challenge. “Other leafy greens director of produce and sales. and corn bread.” seem to be on a faster growth rate than cab- Glory currently sells greens under its Glory has found a niche to add value to bage, but red, organic and wrapped cabbage own label in states east of Texas. It’s goal is the product. This could be important in the are some of our fastest growing products in to continue expanding west. Although pack- future since many shippers say a flat con- that category.” aged greens are a relatively new arrival to sumer demand could make it harder for cab- Less than 5 percent of the company’s the category, Allen sees a big future for bage shippers to make a profit at retail. product is packaged, Greene says. “And by them. “There have been all these trends in According to Dave Miedema, president of packaged, I mean shrink wrapped.” Shrink- healthful eating and people changing their Elmer Miedema & Sons, Inc., Byron, MI, wrapped product gives the company the eating habits. Greens are becoming popular mainstream consumer demand for whole opportunity to print recipes on the packag- because they’re high in vitamins.” head cabbages has decreased since packaged ing, giving consumers more ideas about The convenience factor is also a draw, he shredded cabbage has been available. Fortu- what to do with the product. Hollar & adds. “My mother and grandmother used to nately, the growing Asian population has Greene isn’t currently doing any value-added get bunched greens and fix them from kept demand for cabbage relatively stable. product that requires processing, he adds, scratch. It would be an hour-and-a-half Consumers are demanding more for “but in the future, if trends [continue] the process for them to pick, clean, soak and their money, however, even in bulk prod- way they are now, we may start doing some wash them. These days, people can cook ucts. “People want more value-added pack- microwavable packaging for conventional them with a lot less trouble.” aging such as overwrapping, but they don’t and organic cabbage, although we’re unsure The Val Verde Vegetable Co., Inc., always want to pay for it,” Miedema notes. of how the microwave and the green move- McAllen, TX, has also been doing well with “Our costs have been escalating and every- ment will work together.” pb

140 PRODUCE BUSINESS • SEPTEMBER 2008 TurnTurn YourYour MarketMarketiingng IntoInto AnAn AAwardwarding Experience

Right now, and on through June 5, 2009, we’re taking entries for the 21st Annual Marketing Excellence Awards Program, presented by PRODUCE BUSINESS. The awards recognize excellence in marketing in each of five categories: retailers, restaurants, wholesalers, shippers and commodity organizations. Print, broadcast and other media are eligible to win.

2008 Marketing Excellence To participate, send us the following: Award Winners • California Giant Berry Farms • Colemans Food Centre 1. Your name, company, address and phone. • Colorful Harvest, LLC • Columbia Marketing International Corp. and Rainier Fruit Company 2. Type of business. • Del Monte Fresh Produce, North America, Inc. 3. Names and dates of promotion (must have taken place between • Fresh Quest, Inc. • FreshSense, Inc. June 1, 2008 and June 1, 2009). • Gourmet Trading Company • Idaho Potato Commission • Mann Packing Company, Inc. 4. Promotion objectives. • New York Apple Association, Inc., and T. Marzetti Company • Ocean Mist Farms • Pear Bureau Northwest 5. Description of promotion. • Sage Fruit Company • Stemilt Growers, Inc. 6. Promotion results (sales or traffic increases, media attention). • Sunrise Growers, Inc. • Tanimura & Antle, Inc. What made this program a success? • The Oppenheimer Group and American Diabetes Association • University of Massachusetts Amherst and the U.S. 7. All support materials used in the promotion – such as Highbush Blueberry Council POP, ads, posters, TV commercials. High-res photos are requested. • Virginia-Carolinas Peanut Promotions

Send entries to: PRODUCE BUSINESS MARKETING EXCELLENCE AWARDS P.O. Box 810425 • Boca Raton, FL 33481-0425 Deadline for entries is June 5, 2009 For additional information, call: 561-994-1118, Ext. 101 F O O D S E Foodservice Distribution R V I C Faces New Challenges E

M A And Opportunities R K Foodservice companies must find solutions E to overcoming cost issues and other distribution obstacles. T I BY JACQUELINE ROSS LIEBERMAN N G ore companies are handling every aspect of foodservice distribution from contract- ing growers to hiring drivers who deliver produce to a Mrestaurant’s door. “We manage the entire supply chain — we’ve got the food, we’ve got the transportation,” explains Jim Lemke, vice president, C.H. Robinson Worldwide, Inc., headquartered in Eden Prairie, MN, one of the world’s largest transportation and logistics companies. With foodservice distributors in New York and New Jersey, Performance Food Group-AFI Foodservice (PFG-AFI), Eliza- beth, NJ, is one of the country’s leading foodservice distribution companies. “We actually buy directly from the farms and fields,” reports Ed Carpenito, produce man- Photo courtesy of Sysco Corp. ager. “They grow for us.” Foodservice distribution facilities are designed for efficiency. Whether a company holds several links in the food-supply chain or just one, each link is increasingly important to everyone. it has to be shared since the entire increase For Baldor Specialty Foods, Inc., a Bronx, “We’re looking for more partnership from cannot be passed on to our customer, NY-based company that offers foodservice everyone in the industry,” states Rich explains Dachman. Meanwhile, “We’re get- delivery in the Northeast, one of the biggest Dachman, vice president of produce, Sysco ting a lot of cost-increase requests coming expenses can be “getting product from the Corp., headquartered in Houston, TX, who from our suppliers.” West Coast to the East Coast,” according to also manages produce procurement for all “Fuel’s the biggest driver. As fuel goes up, Michael Muzyk, president. “[After that of Sysco and its wholly owned subsidiary, the cost of everything goes up,” Lemke adds. comes] the ever-increasing costs for my FreshPoint, which specializes in the distrib- Mary Wright-Raina, marketing manager, trucks to deliver.” He sees the challenge as ution of fresh produce. “In order to survive, Pro*Act, LLC, Monterey, CA, agrees, adding, continuing to offer great service and great we all have to help each other.” “The majority of challenges right now prices to Baldor customers. The price inflation the industry is experi- involves the costs associated with procuring Restaurants win out when distribution encing puts margin pressure on everyone in and distributing, including labor, fuel and companies “duke it out” to stay on top in the distribution chain. No one wants to increasing commodity prices. All of those this competitive market, explains Carpenito. accept a price increase but the reality is that add up and somebody has to absorb it.” “Everybody has the same costs. Everybody

142 PRODUCE BUSINESS • SEPTEMBER 2008 What is a Pundit? Merriam Webster — a person who gives opinions in an authoritative manner usually through the mass media. What is the Perishable Pundit? Just ask our readers —

“... providing substance, thought-provoking opinions and, at the very least, waking up many.” “Excellent commentary on the status of regulators’ positioning on food safety for the produce industry.” “... bringing some common sense to the E. coli issue of late.” “... a lively and engaging forum for discussion of issues relevant to the produce industry.” “... thought-provoking commentary with robust dialog.” “... keeping the debate going...” “... kind of an investigative reporter...” “... extensive coverage leaves no subject without great healthy discussion, and no topic is too sacred.” “Your courage in stating your opinion and your reaction to criticism is respectful and honest.” “... focused on the complicated issues relating to food safety in produce.” “... teaching the industry quite a bit about the power of the internet.” “... an education for those of us who are still refining our computer skills.” “... a valuable service.” “... the most important journalism in the industry, and now we get them every day... you have become the ‘voice’ ...” “Your analysis of the state of leadership in the produce industry past, present, and future is right on!” “... a welcome part of the day that stimulates the mind and encourages us to think about and consider a different point of view.” “... writing with heart and insight...” “... one of my ‘must-read’ e-mails everyday!” “Our industry has traditionally not been associated with being ‘deep thinkers’, and you have definitely become our Thought Leader.” “... a resource that delves deeply into issues impacting our industry. Kudo’s!” “Keeps us thinking.” “... spreading your abundant common sense on a daily basis.” “... most refreshing.” “The Pundit does, in fact, incite reactions and cause good thinkers to think harder and longer on topics that are current and newsworthy.” Catch the Perishable Pundit every day. Go to www.perishablepundit.com click on the “Subscribe Today” button and receive a daily copy of Jim Prevor’s Perishable Pundit via e-mail. F has to buy fuel.” For the past several years, the desire for nies per gallon. O In order to help reduce costs in the distri- the freshest product possible has had restau- All these steps are making trucking a lit- bution chain, “We all need to find ways to be rants asking for several produce deliveries tle more cost effective than it has been in the O more efficient,” states Sysco’s Dachman. each week. “They want product delivered past. However, rail is a cheaper option than D FreshPoint has implemented several initia- more often with fewer cases per order, transporting by truck. Baldor’s new facility in which means an increase in costs,” notes New York recently began utilizing a rail line S tives to reduce fuel consumption, including governors on its fleet to hold maximum C.H. Robinson’s Lemke. But, during the past that has sat unused by the nearby Hunts E speeds below 60 miles per hour and limits six months, the trend has moved back Point Terminal Produce Market, Bronx, NY, R on idle time. “We’re asking customers to take toward requests for fewer deliveries in order for years. fewer deliveries and shift delivery schedules to save money. In the future, PFG-AFI will begin receiv- V V to accept night and key drops,” he adds. Large companies, such as C.H. Robinson, ing some of its produce by rail. Carpenito I “We’re also asking our suppliers to process provide the trucking companies they hire says this could save him and his customers C orders electronically to eliminate manual with bulk discounts at some gas stations money, but rail is not ideal for every prod- processes wherever possible.” along their routes, saving them a few pen- uct. It may be more cost effective, but rail E has a reputation for being both inconsistent and unreliable. “We’re trying to convert or transition, M M when it makes sense, from transportation A on the roads to rail,” says Lemke. “For hardy R items, it works well.” In the future, trains may become an option for more time-sensi- K tive perishables. “We’re working on that,” he E adds. “There are a few companies out there working on some fast trains.” T Carpenito is wary of pinning too much I hope on rail. “You’re going to see rail pricing N going up — just like everything else. You also have to pay someone to go and unload G the trailer.” If a company does not have rail service to its door — PFG-AFI does not — the product must still be trucked from the rail yard to the warehouse. And, he notes, “Boats are the same way.”

EFFICIENCY AT ALL ENDS FreshPoint works with customers to cut their costs. “It’s a new day,” explains Sysco’s Dachman. “We’re all in this together. We all have to share in these cost increases. We do everything we can to help our customers,” including recommending less expensive food items for their kitchens. “There are dif- ferent grades that are available. We may rec- ommend using choice pepper instead of a large pepper, that sort of thing.” FreshPoint also educates restaurant oper- ators about how to get the most out of their produce. “Are they cutting the product prop- erly?” Dachman asks. “Are they using 100 percent of it? Are they putting product away right away to avoid spoilage?” At PFG-AFI, “It’s all done with pre-cut and contracting the product,” reports Car- penito. This works for independent restau- rants as well as chains when they buy from PFG-AFI because it buys direct from the grower for all of its customers. By buying 89

# direct instead of from a wholesaler, “You’re not always going to get the cheapest, but you will win in the long run.” And although pre-cut produce has been processed, it can be a better buy. “Pre-cut

Reader Serv i ce doesn’t have to be perfect in appearance,”

144 PRODUCE BUSINESS • SEPTEMBER 2008 Local Produce Gains Popularity ocally grown produce has received ing to Muzyk. And, depending on the region, “We are trying to look at our product mix plenty of attention from the media, local produce can be several days fresher and ship, where we can, regional product L consumers and the entire produce than produce shipped from afar. rather than ship from across the country,” industry. “Today they’re really beating the But local produce has its downside, too. notes Lemke. “That is a fast-growing section drum of local food,” claims Michael Muzyk, “The window of opportunity to harvest is of our business. The growing areas and the president, Baldor Specialty Foods, Inc., much smaller here [in New York],” explains seasons are a tricky part of it and weather is Bronx, NY. Muzyk. Still, Many growers with farms else- a factor.” Some restaurants offer produce from the where are beginning to grow in the North- For chain-restaurant operations, buying farm down the road. “We have a huge Jersey east. Muzyk is proud that Baldor is selling from several regions can present new chal- Fresh program here,” reports Ed Carpenito, some of the first Foxy Lettuce to be grown in lenges, as well. Despite the need for consis- produce manager, Performance Food Group- New York. Foxy is the brand name of The tent product from market to market, Carpen- AFI Foodservice (PFG-AFI), Elizabeth, NJ, Nunes Co., based in Salinas, CA. He hopes ito finds chain restaurants are able to use which has a contract with a local farmer. that by working with local growers, Baldor locally grown produce. “They understand “Consumers are focused toward helping and other companies like it can help the growing regions, just like us, and they the farmer down the street,” points out Jim strengthen the local infrastructure. know in advance where the product is com- Lemke, vice president, C.H. Robinson World- During the winter months when some ing from.” Oftentimes, restaurants will lock wide, Inc., based in Eden Prairie, MN. “It’s areas of the country are unable to continue in delivery from a specific region for a 3- this emotional sense. They have confidence growing outside of hothouses, companies month growing period. in that person. That local product just feels such as Sysco, based in Houston, TX, are The other challenge is simply promoting better to them.” looking at the next closest region. “We’re the local produce a restaurant is using. While serving local produce gives con- hearing more and more about finding prod- While many independent restaurants are sumers the warm, fuzzy feeling associated uct closer to where we’re delivering,” states known for their “farm stand” fruits and veg- with supporting local agriculture and reduc- Rich Dachman, vice president of produce. etables, chain restaurants often under-adver- ing their carbon footprint, restaurants have “Mexico is growing products now that they tise this asset. Some experts say this is a other incentives for using local product. “It traditionally did not,” such as lettuces, to be mistake. With a little promotion, local pro- certainly reduces the cost of freight,” accord- delivered to the West Coast. duce could turn into a big draw. pb 51 135 # # Reader Serv i ce Reader Serv i ce

SEPTEMBER 2008 • PRODUCE BUSINESS 145 F PFG-AFI’s Carpenito maintains. “Therefore them do that. It’s going away from a manual al Practices [GAP]. O you get a better price.” Pre-cut produce is and paper scenario. Now they can do a good “We work with Primus as a gathering site also often shipped in reusable bins that take deal of that online and it’s all automated.” for us,” notes Dachman. “Our vendors sell- O up less space on trucks than boxes of ing us what are defined as ready-to-eat foods D unprocessed produce. FOOD-SAFETY have to register on our Web site and have to download [Primus’] third-party audits.” S “We’re seeing things such as better CONCERNS RUN HIGH recording technology” that helps C.H. Robin- “Customers are very aware of food safe- According to Wright-Raina, Pro*Act has a E son and its customers run more efficiently, ty,” explains Sysco’s Dachman. “Our cus- food-safety scientist and director on staff. R states Lemke. But while its customers used tomers obviously expect us to do everything “Food safety is very important to us. If you to rely on the company to look at all of the we can to keep them safe.” Sysco uses the don’t have safe food, it doesn’t matter what V V little costs and give them one big price tag — services of Primus Labs, a Santa Maria, CA- your costs are. This is why direct and open I ”bundled,” Lemke calls it — today many are based food-safety service provider, to help communication with our customers is such C asking to see every detail. To simplify the ensure food safety and insists that all of its a critical factor in this business.” process, “We’re offering online tools to help appropriate growers follow Good Agricultur- Lemke also stresses the importance of E good food-safety procedures during trans- portation. “We strive to have the safest and most secure supply chain,” he says. M M “Everything has changed so much since A pre-cut came out,” according to Carpenito. R “Even the trucks have changed. Now they have 3-compartment trucks — each com- K partment with a different temperature.” The E temperatures in the trucks are recorded dur- ing the trip so PFG-AFI can inspect them T upon arrival. I For Carpenito, buying direct from grow- N ers has food-safety advantages. “We can tell [customers] when [an item] was grown and G when it was packed,” he explains. PFG-AFI also has more control over how product is packed and can pack it under its private label, West Creek. “They have to be able to trace back everything to where it’s grown before we can buy from them. They have to have all of their paperwork in order all the way up and down.” Traceability is a priority for all reputable foodservice distribution companies. “Cus- tomers all want more visibility in their sup- ply chain,” adds Lemke. In addition to third- party audits, “We’re working on new track- and-trace methods.” However, more food-safety procedures necessitate more expense. “All of these costs have increased as food-safety concerns have increased,” says Lemke. “Everything you do adds in to the cost of product,” agrees Carpenito. Lemke believes the industry’s best bet is to work together to create and maintain standards that will allow everyone to avoid and, when necessary, contain outbreaks. More than at any time in the past, every- one is aware that any food scare affects everyone from the restaurants themselves all the way to growers, even when they may have had nothing to do with the affected 78

# produce. In the wake of this past summer’s tomato advisory, “No one was at fault, but everyone was affected,” states Dachman. “I was really very proud of the industry. Everyone realized that we all need to work

Reader Serv i ce together on this.” pb

146 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 134 D R I E D Selling More Pistachios F R Healthful snack offers retailers promising opportunities to build profits. U I BY FRITZ ESKER T

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N istachios are becoming more pop- banana. Pistachios are also ular as consumers discover their high in phytosterols, which U health benefits. Retailers are look- lower cholesterol levels. T ing for ways to further boost sales Dominic Engels, vice S by educating consumers and capi- president of marketing, Ptalizing on the positive press that pistachios Paramount Farms, Inc., are garnering. Bakersfield, CA, says the In July 2003, the U.S. Food and Drug pistachio is the only nut Administration (FDA) released a study stat- that contains significant ing most nuts, including pistachios, may amounts of lutein and zeax- reduce the risk of heart disease when con- anthin, two antioxidants sumed as part of a low-fat, low-cholesterol associated with reducing diet. The study’s findings provided a the risk for macular degen- tremendous boost to the pistachio industry. eration, the leading cause “Consumers now have a very positive view of blindness in Americans of the nutrition pistachios contain,” reports over the age of 65. Richard Matoian, executive director of the Western Pistachio Asso- ciation, Fresno, CA. This helped change the public’s perception of the nut’s health value, which was previously somewhat unfavorable. “People used to think [pistachios] were fatten- ing,” explains Mia Cohen, chief operating officer, Setton Pistachio of Terra Bella, Inc., based in Commack, NY. Promoting pistachios during sporting While there is fat in events increases impulse purchases. pistachios, nearly 90 per- cent of it is considered good fat. A moderate pistachios were shipped domestically, intake of monosaturated fat — the type YEAR-ROUND according to Matoian. In October, the num- found in pistachios — is more effective in POPULARITY ber climbed to 13 million, then dipped back preventing heart disease than is reducing While pistachio sales increase during the to 11 million in November. The December overall fat intake. Aside from its heart- winter holiday season, the nut sells well total reached almost 15 million before slight- healthful attributes, pistachios also provide throughout the year. “We see an increase ly dropping to 13 million for January. a number of other health benefits. A 1- during the fourth quarter of the year, but we Along with Thanksgiving and Christmas, ounce serving of pistachios contains more have found our retailers are now promoting Super Bowl Sunday also presents a good dietary fiber than a half cup of broccoli or pistachios year-round,” notes Milt Castro, opportunity to increase sales. Keenan Farms, spinach. A single, 1-ounce serving of pista- sales manager, Nichols Farms, Hanford, CA. Inc., Avenal, CA, sells the greatest number chios has as much potassium as half a large In September 2007, 9 million pounds of of pistachios before Super Bowl Sunday.

156148 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 31 D “This event is the biggest snacking/eating packaged foods. R and social gathering sports event of the Success In year,” states Robert Keenan, president. INCREASING SALES I Although sales of pistachios are on the E.U. Market E PACKAGED VERSUS BULK rise, consumers don’t typically go to the D Experts offer differing schools of thought supermarket looking to purchase them. “Pis- merican pistachio farmers are on the best way to sell pistachios. Some tachios remain an impulse purchase year- seeing an upswing in exports. believe packaging pistachios helps keep the round,” explains Paramount’s Engels. A According to Richard Matoian, F nuts fresh. Jeff Prusak, director of purchas- Retailers can increase sales by capitaliz- executive director of the Western Pista- ing, Aurora Products, based in Stratford, CT, ing on the pistachio’s popularity as an chio Association, Fresno, CA, exports typ- R R prefers packaging over bulk. About 99 per- impulse product. “You don’t want to let it sit ically account for 40 percent of pistachio U cent of the nuts Aurora sells are packaged. by itself,” notes Aurora’s Prusak. “You want production, but this year, exports will I “I like to see pistachios in packages due to put it with other items such as cranber- account for approximately 70 percent of to the fact that they are hygroscopic — mois- ries, almonds or trail mix.” By doing this, a production. T ture from the air will absorb into the pista- consumer looking for cranberries might see “Inevitably, the price of pistachios will chios, causing them to become stale-tasting pistachios and decide to buy them as well. go up in order to maintain a balanced, rather quickly, especially in a high moisture “You walk in for one [item] and you walk out year-round supply for the good of our & area of the produce department,” according with three.” customers and consumers,” explains to Teresa Keenan, marketing manager of Pistachios benefit from attractive graph- Dominic Engels, vice president of mar- N Keenan Farms. ics on the packaging along with strategic keting, Paramount Farms, Inc., Bakers- However, it doesn’t have to be one or the positioning and placement within the field, CA. U other. “Consumers require different ways of department. It’s also important to promote Matoian gives two major reasons for T buying pistachios,” notes Cohen. “While different uses for pistachios, Setton’s Cohen the shift. First, “The weak dollar makes packaging aids freshness, bulk gives the explains. While stressing pistachio’s heart- pricing of American-grown pistachios in S straight-from-the farm look and feel.” healthful attributes, retailers and merchan- the world marketplace attractive.” “Bulk is a traditional display mechanism disers should remind customers they are The second reason involves Iran, for nuts,” reports Matoian, although he does “more than just a garnish on a salad” and America's main competitor in the E.U. pis- concede that some people have food-safety can be used in savory dishes and for baking, tachio markets. Iranian pistachios have concerns about bulk because it is easier for she recommends. had problems with aflatoxins, a mycotox- someone to tamper with them than with The pistachio industry is rapidly expand- in produced by many species of the aspergillus fungus. Aflatoxins are highly carcinogenic. “The European Union rejects Iranian pistachios because of this,” explains Matoian. “And it's not a concern with American product. Our product is viewed as a cleaner, safer product in the European Union.” Additionally, “Forty to 60 percent of the Iranian crop was affected by a recent frost, further limiting the country's pista- chio export capabilities,” says Engels. pb

ing. Nichols’ Castro, expects the number of new plantings to double in size in the next 10 years. Western Pistachio’s Matoian notes there are currently 115,000 pistachio-bearing acres in California. In the next five to seven years, that number will substantially increase to approximately 177,000 acres. There are cur- rently 177,000 acres in the ground, but it takes five years to reach bearing capacity. “The challenge is how to market an even larger crop and find opportunities to increase sales,” he adds. 43

# As evidence of pistachios’ increasing popularity, Engels points to Bravo’s TV show Top Chef. The winning recipe from this year’s season finale featured braised pista- chios. “We believe the industry is poised for

Reader Serv i ce continued strong growth.” pb

150 PRODUCE BUSINESS • SEPTEMBER 2008 FLORAL WATCH Sustainability Success Stories

ESMERALDA FARMS RECEIVES VERIFLORA CERTIFICATION Esmeralda Farms, one of the largest importers of cut flowers to the United States, received Oakland, CA-based VeriFlora certification for its 620-acre, 8-farm Hilsea group in Ecuador. Scientific Certification Systems (SCS), Emeryville, CA, evaluated the importer’ s environmental, social and quality management practices in order to be certified and determined that the importer met exceptional standards of excellence. Reader Service No. 330

METROLINA GREENHOUSES RECEIVES VERIFLORA CERTIFICATION Metrolina Greenhouses Inc., Huntersville, NC, creator of the largest single-sited green- house in the United States, received certification under the VeriFlora Certified Sustainably Grown eco-label. Spanning nearly 130 acres, the temperature-controlled facility prevents wasteful consumption and operates under care- ful water and energy controls. Social responsibility efforts include tying salaries to a liv- ing wage well above minimum federal levels. Reader Service No. 331

BIOWORKS RECEIVES VERIFLORA CERTIFICATION BioWorks, Inc., Victor, NY, became the first company to achieve approval of products and input materials that support sustainable production practices under the VeriFlora certification program. The first approved product, RootShield Granules, is a beneficial fungus that provides season-long control of root diseases. Scientific Certification Systems (SCS), Emeryville, CA, expanded the VeriFlora program to include Approved Material Manufacturers. Reader Service No. 332

SUSTAINABLE AGRICULTURE STANDARDS COMMITTEE FORMED Society of American Florists, Alexandria, VA, announces the formation of the committee that will set the country’ s first national standards for sustainable agriculture. Six of the committee’ s 58 members are from the floral industry. Representing the ornamental hor- ticulture industry are Hans Brand of B & H Flowers, Carpinteria, CA; Jim Barrett of the Environmental Horticulture Department at the University of Florida, Gainesville, FL; Will Healy of Ball Horticultural Company, West Chicago, IL; Stan Pohmer of Pohmer Consulting Group, Minnetonka, MN; Tom Leckman of Sierra Flower Trading, Montreal, QC, Canada; and Juan Carlos Isaza of Asocolflores, Bogota,Colombia. The Standards Committee will have the final say on the Draft National Standard for Sustainable Agriculture Production, which, once accepted by the American National Standards Institute (ANSI), would certify a company’ s products as sustainable. The national stan- dard is set to be released in 2010. Reader Service No. 333

WIND-POWERED CARDS Landscapes Within, Inc., Boulder, CO, offers a greeting and enclosure card line printed in the United States on glossy recycled paper. The New Leaf paper is 50 percent post-con- sumer, chlorine-free and manufactured with wind energy. The offices are 100 percent powered by wind-generated electricity. Donations from card purchases go toward Alzheimer’ s research. For the past two years, the company has supported an Alzheimer’ s research team at the New York-Presbyterian Hospital/Weill Cornell Medical Center in New York, NY. Reader Service No. 334

ORGANIC AND BIODEGRADABLE MATERIALS DOT Pots, Inc., Arcadia, FL, introduces the world’ s only organic biodegradable grow pot listed by Eugene, OR-based Organic Materials Review Institute (OMRI). The self-starting pots are ideal for growing flowers, herbs and vegetables from seed and are made from 80 percent wood fiber and 20 percent peat moss. No glues are used in binding.

Reader Service No. 335

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]

SEPTEMBER 2008 • PRODUCE BUSINESS 151 Interview by E. Shaunn Alderman Q&A Questions For Gerald Prolman erald Prolman is an eco-entrepreneur, an industry pio- an inevitable tipping point and will soon see a complete transforma- neer with vast experience in natural and organic prod- tion of our industry, where buyers will source flowers only from ucts trade. For the past 30 years, he has taken risks and farms using sustainable practices. thrived on discovering and promoting solutions. Q. What’s the reaction from growers? Largely credited for having established the U.S. mar- A. Growers have been receptive to initiating organic production Gket for sustainably grown flowers, Prolman was the inspiration since agrichemicals are continuously being banned, energy and behind the establishment of VeriFlora, America’s first sustainable labor costs are increasing and global competition is fierce. There’s floral certification program. He also has been instrumental in creat- an oversupply market situation. Organic production means new ing global awareness for the need for sustainably grown flowers. growth for the floral industry, especially as consumer awareness of Prolman was president and co-founder of Made In Nature, the social and environmental issues relating to floral production rises. first company to successfully introduce a line of branded organic More growers will respond once they see a green light from produce to U.S. supermarkets. In 1994, Prolman sold Made In visionary retail buyers who are environmentally committed. The Nature to Dole Food Company, Inc., Westlake Village, CA. inherent demand in step with increasing supplies will drive a com- Today, Prolman is CEO of San Rafael, CA-based Organic Bou- plete shift in how flowers are bought and sold. quet, Inc., the world’s first online organic florist, founded in 2001 Q. How difficult is it to grow beautiful flowers without and of Eco Flowers Farm Direct, its wholesale business unit. using pesticides? Q. Why should we consider organic flowers? A. It’s not easy to grow flowers organically, but there are viable A. People initially gravitated to organic products for personal and available alternatives. It boils down to economics, experience health concerns over pesticide residues in their foods. Organic is an and support from the marketplace. It’s market driven — growers are environmental-farming method. Food is just the by-product of the the most resourceful people I know. To the extent the market method. Organic is about protection of the earth, so it doesn’t mat- demands sustainable practices, growers will respond. Consumers ter whether it’s food, cotton or flowers. would prefer to buy eco-certified flowers if they are made available. Q. Why are flowers an environmental issue? Q. What are some of the obstacles to addressing social A. Flowers are typically grown with an artillery of synthetic fer- and environmental concerns while simultaneously achiev- tilizers, insecticides, fungicides, nematocides and plant-growth reg- ing favorable bottom-line results? ulators. The use of strong chemicals can negatively effect the envi- A. Social and environmental commitment doesn’t always lend ronment, the farm workers who handle the flowers, the wildlife and itself to being competitive on costs. Price-driven companies are the ecology. motivated to cut costs, which sometimes, unintentionally, down the Q. What’s driving the demand? How is it reshaping atti- supply chain, contributes to exploitation of the earth and the people tudes and corporate behavior? who produce the products. The natural tendency is to save A. Awareness of the environment is at an all-time high. money where you can, but the challenge is to refuse to Increasing numbers of people today are making values-based buy cheaper when cheaper means people or the environ- purchasing decisions. They want to know how farm workers ment are compromised. are treated and they want assurance the earth was not conta- Surprisingly, there are not always laws or adequate minated in the process. checks and balances to assure products are ethically pro- It’s clear to many that the earth and its inhabitants are in duced. Consumers reasonably expect retailers are doing serious jeopardy. Basic survival instincts are driving a mas- this and become highly disappointed when they learn sive shift in corporate behavior. Consumers are responding by otherwise. In the past decade, billions of retail dollars have making purchasing choices to support businesses that migrated to progressive retailers who are in tune with practice responsible commerce. this concept. More than ever, businesses have Young people especially are no longer will- to stand up for what’s right, not what’s ing to tolerate old-school marketing spin, cheaper. senseless consumption and reckless produc- Q. What’s your goal for the tion of goods. Businesses that offer respon- fresh-cut flower trade? sibly produced goods and are transparent A. Mission accomplished is the about their sourcing will win support day when there is no tolerance for from this new breed of consumers. any agricultural product that isn’t Q. What’s the current trend for responsibly grown and harvested. organic and certified sustainably We quickly want to see organic grown flowers? supplies increase and the market A. Organic flowers are following support its growth. This will bene- the same trend organic produce did in fit farm workers, farm owners, the early 1990s. We’re moving toward retailers and consumers. pb

152 PRODUCE BUSINESS • SEPTEMBER 2008 F L O R A Certified Programs L & Gaining Floral Fans F O Retailers attract socially responsible consumers with certified cut flowers. L I BY JON VANZILE A G rowers and retailers are embrac- flowers hold Fair Trade Certification, so any E ing certification programs supplier who sells into the European market designed to ensure consumers probably already holds at least Fair Trade. M that their flowers are grown World Flowers, LLC, Englewood, NJ, is a per- responsibly. fect example, says Joseph Farrell, president. A GCertification programs usually focus on World Flowers serves as the U.S. arm of R environmental issues, such as sustainability, Oserian Flowers, a Naivasha, Kenya-based K or social issues, such as working conditions farm that sells millions of stems every week E on the farms in developing countries. “We in Europe and supplies African roses to the wanted to offer more sustainable or environ- U.S. market. World Flowers recently moved T mentally friendly product,” explains Debbie from its office in the United Kingdom to the I Zoellick, floral buyer for Sam’s Club, a 713- United States, after the market opened up N store membership chain owned by Wal-Mart for Fair Trade roses. Stores, Inc., based in Bentonville, AR. She Some vendors in Latin America began G says this is why Sam’s, which both whole- demanding certification from the New York, sales and retails flowers, began to demand NY-based Rainforest Alliance, reports Caroli- certification from its suppliers. na Gonzalez, marketing coordinator, Floral Several competing certification programs Sense, LLC, Miami, FL. “It was becoming exist today. The most recognizable is Fair critical for many of our vendors and it Educating consumers about certified Trade Certification, granted in this country extrapolated to the United States,” she cut flowers is key to their success. by TransFair USA, Oakland, CA. Fair Trade explains. Floral Sense is the marketing arm made its name promoting socially responsi- for farms in Costa Rica that grow flowers label,” she explains. ble coffee. Its products include chocolate and and tropical-cut foliage for arrangements. Certified flowers currently represent less fresh-cut flowers. October is Fair Trade Another certification, VeriFlora, Oak- than 1 percent of overall floral sales at month, so many retailers establish integrated land, CA, encourages growers to use organic Roche Bros., Loche points out. “It wasn’t an displays featuring Fair Trade products from practices and sets targets for greenhouse overwhelming response at first, but in some throughout the store. gases and fair labor practices. towns, I’ve gotten write-ups in local papers One of the interesting things about the “Before we started looking into farms and and there’s a grassroots movement forming. push for certified flowers is its source: their certifications, we discovered most of I’m definitely looking to build on it.” domestic retailers and overseas buyers. It’s our farms already had one or more of At Sam’s Club, buyers demand certifica- fair to say that most domestic consumers these,” Zoellick explains. “Good farms want tion, “So at this point, all farms are either know very little or nothing about sustain- to take care of their people and the earth.” certified or are in the process of being certi- ability in cut flowers — even though studies Debbie Loche, floral buyer, Roche Bros. fied,” Zoellick reports. have shown a consumer preference for Supermarkets, Inc., a Wellesley, MA-based environmentally responsible products. chain with 18 stores, spent more than a year CONSUMER EDUCATION Retailers in the United States are walking researching certification programs before Consumers are the missing piece of the in the shadow of the European marketplace settling on Fair Trade flowers. “We wanted to puzzle when it comes to certified flowers. or benefiting from existing programs in Latin develop a program that went along with our They aren’t demanding certified flowers — America. It’s not uncommon for a floral company philosophy to buy consciously and not because they don’t support them, but buyer to begin researching certified flowers, locally. The Fair Trade program is a natural because very few consumers know they only to find out that most suppliers already for our supermarket because there are so exist. “I’ve had literally no demand from hold at least one certification. many other products in the store that are consumers, but they don’t know what’s European buyers regularly demand cut already Fair Trade. Consumers recognize the available,” Loche of Roche Bros. notes.

SEPTEMBER 2008 • PRODUCE BUSINESS 153 F The lack of demand is problematic L because consumers haven’t shown a willing- ness to pay a premium for certified flowers. Certification Programs O This matters because, in the case of Fair R Trade, for example, there is a 12 percent sur- FAIR TRADE A charge attached to the product. Rainforest Fair Trade Certification, Oakland, CA, guarantees small farms a certain minimum price Alliance products are also marked up — usu- for their products. Fair Trade products include coffee, chocolate, tea, sugar and flowers. L ally about 10 percent. Farm workers have protections and rights, including better than average working condi- This presents a challenge to retailers. “We tions and medical care. Fair Trade also has stringent rules regarding environmental sus- don’t want our consumers to have to choose tainability. Fair Trade has a transparent and rigorous auditing system so retailers can see & & between an environmentally friendly prod- exactly where their money is being spent. uct and one they can afford, so it’s important FLORVERDE F we manage costs,” Sam’s Zoellick notes. Roche Bros. carefully stocks its shelves so Florverde, Bogotá, Columbia, was launched by a group of farms in Colombia, the sin- O certified products do not compete directly gle largest supplier of cut flowers to the United States. Florverde certification guarantees L with non-certified and less expensive prod- its flowers were grown with safe, sustainable farming practices and the farm is a safe ucts. Loche buys only Fair Trade intermedi- work environment for its workers, with minimum age requirements and on-site medical I ate roses and stocks them separately from and family resources. Florverde growers are regularly audited by an external agency. A non-Fair Trade large roses. G Most retailers and growers view this as an RAINFOREST ALLIANCE education challenge. A 2007 study by Infor- The Rainforest Alliance (RA), New York, NY, guarantees products carrying its label were E mation Resources, Inc. (IRI), Chicago, IL, produced in ways that protect and conserve natural resources, as well as benefit workers. found 89 percent of consumers were inter- RA products include coffee, produce and fruit, herbs, and foliage and flowers. RA farms ested in eco-friendly products and 30 percent are audited by independent auditors and must meet standards developed by the Sustain- M actively sought them out. The trick is con- able Agricultural Network. A verting this sentiment into bottom-line sales. R The various certification programs have VERIFLORA approached this education challenge in dif- VeriFlora, Oakland, CA, guarantees that labeled products were produced in ways that K ferent ways. The most successful appears to conserve resources and energy and promote sustainable agriculture. The company E be Fair Trade. “They promote heavily,” encourages growers to migrate toward organic practices and sets targets for greenhouse Loche explains. “They have great POS mate- gases and fair labor practices. VeriFlora standards are compliant with the federal Draft T rials and supply everything. They provide American National Standard for Sustainable Agriculture. VeriFlora farms are audited by I posters, cards and stickers on packages. [Our the independent Scientific Certification Systems (SCS), based in Emeryville, CA. N Fair Trade grower] came up twice to meet with my management and give handouts.” G This aggressive effort is possible because Fair Trade sets aside a certain percentage of room for confusion. In addition to the four unlikely, in part because of the historical its revenue for marketing and education. major certifications, some stores have their roots of each program and in part because of Other certification programs, including own private eco-label programs assuring the nature of the business. VeriFlora, Rainforest Alliance and Bogotá, consumers their flowers were supplied by While certification programs generally Columbia-based Florverde, are engaged in responsible growers. The result is a rainbow ensure the same thing — the product is good their own marketing and education efforts, of labels and programs. The obvious danger for the environment and the workers who including labeling, public relations programs is that, presented with overwhelming data, produce it — they each have very different and in-store education programs. consumers will simply tune it all out. roots. The Florverde program originated in VeriFlora has created the VeriFlora Sus- “The problem is there’s not any one mar- Colombia as a way to support flower farm tainability Council, an Oakland, CA-based keting brand the industry has embraced,” workers. By contrast, the VeriFlora certifica- nonprofit agency dedicated to spreading the reports Scott Hill, vice president of sales and tion, developed by a U.S company called Sci- word about VeriFlora. marketing, The USA Bouquet Company, entific Certification Systems (SCS), based in “The tricky part is that all this takes Miami, FL. “It’s very confusing to con- Emeryville, CA, is actively working on money and our industry is not awash in sumers.” USA Bouquet works with Fair developing national standards to help define cash,” relates Bruce Brady, director of busi- Trade, VeriFlora and Florverde growers. To sustainability in domestic agriculture. Rain- ness development and marketing, The Sun cut down on labeling issues, the company forest Alliance was founded to protect rain- Valley Group, Inc., an Arcata, CA-based pro- has developed a USA label that “tells con- forest resources throughout the tropical ducer of domestic cut flowers with Veri- sumers if you buy from us, it’s responsible.” world, and Fair Trade was created to protect Flora-certified farms. “It would be great to One solution would be a single, instantly small growers throughout the Third World have a Charlton Heston of sustainability. recognizable global standard. “It would be from fluctuations in the global market. The right type of person to speak to the wonderful if there were just one certifica- “We in the industry know these labels, flower issue and sustainability would be a tion that encompassed all of these things,” but it doesn’t always translate to consumers,” great asset for us.” notes Sandra Merlau, product development, according to Loche. “The industry is always Hosa International, Miami, FL. Hosa’s farms going to be splintered. It’s the nature of the ONE-WORLD FLOWER are Florverde-certified in Colombia and beast, but I think there’s room for multiple Even with plenty of differentiation VeriFlora-certified in Colombia and Ecuador. certifications, and each one will probably between certification programs, there is still Unfortunately, such a standard seems mean something to some market.” pb

154 PRODUCE BUSINESS • SEPTEMBER 2008 Reader Service # 54 RETAIL By Dave Diver PERSPECTIVE Pricing In Today’s Economy

recently visited the supermarket where I spend the greatest price increases should have little impact on consumers in this eco- amount of grocery dollars because of its quality, pricing and nomic environment. Likewise, he is far from accurate when he con- value. Once inside, I approached the produce department in tends, “the most successful food retailers operate with net margins the opposite direction from normal traffic flow. My traffic pat- less than 1 percent.” Perhaps he should remain with his more inter- tern was accidental as I was making a quick visit for something esting interpretations of the political arena and leave food-related Ielse in the store so my direction became reversed. The first item I analysis to those more familiar with the marketplace. observed was an end-cap display of bulk potatoes and onions with a Wal-Mart leadership deserves credit for recognizing the winds of price card marked $1.49/pound for bulk Russets displayed near 5- economic change more than a year ago. It takes real courage to drop pound bags of mixed potato varieties for $3.99. I’m aware supply the successful 19-year slogan Always Low Prices, which is no longer was limited and the cost to the retailer had increased, but continu- compatible with today’s economy, and replace it with Save Money, ing the usual percentage markup structure offers consumers con- Live Better. Savings is what the company has always been about and fronting today’s economy the message that the if that allows some improvement of lifestyle in time has come to look for an alternative meal- an inflationary economy, all the more reason to time carbohydrate. connect the dots. With more consumers trading My brain quickly began calculating alterna- down and more meals being eaten at home, this tives. My first thought was to head for the pasta message coupled with more food-item promo- section, which yearly achieves an increasing tion has brought not only improved sales but share of the dinner plate. Then I thought about As the economic also higher corporate profits. cooking a vegetable such as broccoli or sweet environment As the economic environment deteriorated corn. Next, I considered buying a package of in 2008, other food retailers have also altered processed potatoes on display in another deteriorated their promotional programs to give consumers department’s refrigerated sections. In the in 2008, new savings messages. Multiple pricing, weeks since that visit, new high potato prices food retailers emphasis on private label with display compar- have put all of the alternatives in play. isons showing accumulated savings of over While supply conditions have resulted in altered their one-third, buy-one-get-one-free items taking up practically no advertising of fresh potatoes, the promotional a full flyer page and tie-ins of loyalty cards to fresh-processed product has been frequently the recent tax rebates are part of an effort to promoted. Exploring a section I rarely visit, I programs to give attract consumers who need food savings to suddenly became aware of the increasing num- consumers new cope with overall inflation. On the plus side, ber of companies offering a refrigerated potato savings messages. most retail executives have found their market- alternative — often an extension product of an ing skills provide them with more profitable original product line that complemented their opportunities in a moderately inflationary meal-solutions program. Will a percentage of environment than when cost increases remain fresh-potato consumers convert to a more con- relatively unchanged. venient product and become permanently lost At the other end of the spectrum, where spe- if and when prices return to a more reasonable level? cialty retailers, such as Whole Foods and Fresh Market, emphasize This is only one produce item effected by higher retails brought higher priced products — both organic and upscale — the challenges on by a combination of supply disruptions and, more importantly, to maintaining sales levels is much greater. One sales indicator added transportation costs. At the same time, the consumer, buffet- appears to be the increased amount of culling observed in their pro- ed by an inflationary economy, suddenly has less discretionary duce departments. income for non-basic food purchases. Based on the most recent IRS Increased produce sales often mask tonnage decreases, which Statistics of Income for the 2006 tax year, approximately 55 percent affect turnover and ultimately translate back to the growing com- of tax filers had adjusted gross income of less than $50,000 with an munity. Producers of some crops may have to adjust production average of about $12,000 after-tax income. As energy costs — up levels to cope with new evolving economic conditions. Good mer- nearly a third — compete for limited dollars, is it any wonder the chants will need to develop a mix, emphasizing lower priced sea- retail food sales mix is changing? sonal values to attract consumers. Otherwise, consumers may find In a letter to the Perishable Pundit, Steve Malanga of the right- filling the stomach with cheaper calories loaded with fat, sugar and wing free-market think tank, Manhattan Institute, states that salt replacing the Produce For Better Health Foundation’s Fruits & because food has been a relative bargain for years, the current food- Vegetables — More Matters message. pb

156 PRODUCE BUSINESS • SEPTEMBER 2008 PRODUCE BUSINESS is accepting nominations for its Fifth Annual 40 Under Forty Project, which recognizes the produce industry's top young leaders.

Honorees will be selected based on their professional accomplishments, demonstrated leadership and industry/community contributions. To be eligible, nominees must be under the age of 40 as of January 1 (People born after January 1, 1969).

To nominate someone, please fill out this form by March 1, 2009, and fax back to 561-994-1610.

Once nominated, the candidate will receive forms from us to fill out asking for detailed information. A candidate only needs to be nominated one time. Multiple nominations will have no bearing on selection.

ABOUT THE NOMINEE: Nominee's Professional Achievements: ______First Name ______Last Name ______Approximate Age ______Company ______Position ______Nominee's Industry/Community/Charitable Activities: Address ______City ______State ______Postal Code ______Country ______Phone ______Fax ______ABOUT THE NOMINATOR: E-mail ______First Name ______Last Name ______In 100 words or less, describe why this person should be nominated: Company ______(You can use a separate sheet for this) Position ______Address ______City ______State ______Postal Code ______Country ______Phone ______Fax ______E-mail ______

Nominator information is for our use only and will not be shared with candidate or have a bearing on selection. For more information email: [email protected] VOICE OF By John Pandol THE INDUSTRY Searching For Sustainability Answers

verything I know about sustainability I learned in hunter- tainable group in everything we do. safety class. Actually that’s not true. I learned about sus- So what am I supposed to say my sustainability program is? tainability in many places. We’re doing the same things we’ve been doing for years doesn’t Aesop’s fable about the ant and the grasshopper taught seem to be the correct answer. Any practice that doesn’t decrease or us about making sure we had enough resources to get destroy the productive capacity of land and livestock would there- Ethrough the winter. My faith tradition taught me about stewardship. fore be considered a sustainable practice. That doesn’t seem to be College economics taught me how rational people replace scarcer the answer either. resources with more plentiful ones. I just don’t get it. Maybe what I need is a consultant to tell me So if I want to light my house at night and whale oil is too scarce, the answer. I instead fill my lamps with the more plentiful kerosene. A still bet- Welcome to the world of the sustainability consultancy. We own- ter use of resources is not transporting the dangerous kerosene to be ers, operators and residents of the land for generations (prima facie burnt in thousands of lamps, it’s burning a hydrocarbon at a central evidence of sustainability) cannot know what measures we should location and moving the energy by wire to heat take to care for the land. This new breed of out- thousands of tungsten filaments in vacuum siders must come in to educate us. They come bulbs. As the hydrocarbons get scarcer and from the world of environmental advocacy. more expensive, at some point the capital-inten- They’ve read the right books, from Rachael sive solar panel becomes worthwhile. Carson to Al Gore. They tell us things such as When I sat through hunter safety with my biologically derived materials are a better kids, I discovered the course had a huge envi- choice than geologically derived ones? Fine, so ronmental component but, fundamentally, the Why is there we all tried cornstarch-based PLA packaging course distinguished the wise use of resources the assumption and found many applications for which it is not — conservation — from the non-use of suited. They tell us to reduce our packaging. resources — preservation. that my system Fine, so we reduce the amount of paper, and In summary, we must be good stewards who is wasteful? the paper we do use has a greater recycled con- wisely use resources, changing from scarcer to tent. It looks grand on my Sustainability Fact more plentiful resources before the resources Sheet but does not take into account the added run out. Generations of farmers who never took shrink. The shrink is from damaged product college economics or hunter safety knew the because we cut the amount of paper in the box. requirement to maintain and improve the pro- Why is there the assumption that my sys- ductive capacity of their land and animals or tem is wasteful? I get pressure from the retail- production would fall, meaning hunger or eco- ers who, for some reason, think there are nomic ruin. This is not new. wasteful practices in my operation. I put down stuff I’m doing any- So why, all of a sudden, are people asking me what I’m doing to way and call it sustainable. But who is yanking the retailer’s chain? be sustainable? Why are retailers making Earth Day announcements? Where’s it all The question is a bit odd. What am I doing to be sustainable? coming from? Everything I do to the land maintains and improves its productive Driving through central California a few weeks ago, I tuned in to capability. Land is my biggest asset and to destroy the land is to Radio Pacifica. Radio Pacifica, founded in 1946 by pacifist conscien- destroy the balance sheet. The assumption is that the land will be tious objectors Lewis Hill and John Lewis, is alive and well and has productive in the future. a relay station in Fresno. The programming was all environmental- Perhaps it would be useful to approach the sustainability ques- ly oriented. Does the pressure that trickles down to me start with tion backwards. What farming practices do I engage in that will, people at places such as Radio Pacifica? over time, deplete the productive capacity of the land? How do I In case you can’t tell, I have a deep distrust of these people. promote excessive soil erosion or compaction, water runoff, disease “Every great cause begins as a movement, becomes a business, and infestation or soil chemical imbalances? eventually degenerates into a racket.” Eric Hoffer had it right. Con- File it under firm command of the obvious. Farmers are a sus- sultants’ certifying a farmer as sustainable is a racket. pb

John Pandol is vice president of special Projects at Pandol Brothers.

158 PRODUCE BUSINESS • SEPTEMBER 2008 EUROPEAN By Marc De Naeyer De De Naeyer wrote on MARKET Green Creativity for the 2007 Green Issue. Green Creativity, Chapter 2

n 2007, it was “cool to be green.” One company rolled out “Plan efficient and more cost effective. On the other, we produce some- A, because there was no Plan B”, others tried to lure us into thing we do not know the consumer really wants. buying trees in what looked to be the latest pyramid — or to be We face a similar conundrum with packaging; re-usable bins politically correct — the latest CO2 offsetting scheme. Yet others would minimize packaging costs, yet we are offering more punnets, tried to convince us that oil had run out and we needed to cut wraps and other containers at retail than we should. So we look for Iour addiction, soon, real soon. alternatives. We try biodegradable plastic, develop cartons that Barely a year later, we have seen the beginnings of a financial require less energy during pre-cooling and so on. Again, we tool for meltdown. We are in a recession — or at the very least talking our- improved efficiencies in the existing scheme of things. selves into one. In Europe we are dealing with gasoline at $9 a gal- Then there is the cost of bringing a product to market. The ideal- lon (!!). We are apparently running out of food faster than oil and, if ists have invented the “food-miles scheme.” Fantastic, you think, we believe all the doom and gloom, the world is a mess. since we buy and consume locally. But now we find those snow First of all, my American friends, life does go on, even at $9 a peas from Kenya produce less CO2 than it takes to drive your SUV gallon for gas. You just have to drive smaller, more fuel-efficient to the local organic store to pick them up! cars. Second, bicycles are a great alternative for The cost of petrol will rise long term, and short distances. Even England’s Waitrose is con- the question then will be whether it continues sidering using bike couriers to deliver online to make sense to source fresh produce from shopping orders. “down under.” Do we really need those straw- So is the hype of green over? Was it hype in Let’s view $9 berries or peaches for Christmas? What pro- the first place? Is green the beginning of a new duce can we ship if sails rather than engines era? Will we have to be green long term in order a gallon gas once again propel container vessels? Will cate- to to be cool? And how does all of this relate to as a challenge gory management have to be re-designed for a fresh produce? to do better. smaller variety of products? Or will seasons In 2050, this planet will house 9 billion peo- once again define the size and display of fresh ple — 50 percent more than today — who need produce departments? to be fed! The available acreage for farming will How will logistics develop? Will one truck at best remain the same, but it is more likely to need to deliver all goods to the depot/store? shrink. The volatile, unpredictable factor of cli- Can we afford to continue with just-in-time mate change will mean more extreme weather patterns resulting in delivery, or will we revert to depots holding stock for several days? more crop failures more often. Can Europeans persist in their opposi- How about reducing dependence on trucks and bringing back river tion to genetically modified crops? As a speaker at the recent FRESH barges and trains? 2008 Congress in Antwerp asked, who are we to judge countries And we haven’t even considered intangibles such as politics or where the line between nourishment and starvation is very thin? the volatility of currencies — so who cares about “cool to be green?” For fresh produce, the impact of the rising cost of energy is We have much more serious issues to deal with, and we need to find tremendous and potentially devastating. The energy bill to grow, long-term solutions for our fresh produce industry around the world. pack and ship fresh produce has doubled in recent years. Have the We need to help our growers become energy self-sufficient by prices risen? No. The cost of matériel — cartons, pesticides etc. — enabling them, facilitating them and/or investing with them in has gone up. Have the prices risen? No. Some growers have to renewable energies. “All” we need in sunny climates is solar panels decide whether to change to a different crop or walk away. In cash on packinghouses. “All” we need to do is plant second-generation crops, the change over is easy — e.g., if lettuce does not cut it, then bio-fuels such as jatropha — a perfect border/divider because if uses switch to bio-fuels. hardly any water and does not take away space from other crops. But on long-term crops (a grape orchard has a minimum invest- Even simpler yet, all we need to do is invest in a more efficient ment of 20 years), we initially look at improving yields to drive out energy grid/system than the outdated ones we have. And let’s costs and if that does not work, we change to higher-yielding culti- earnestly communicate to retailers and consumers that if they want vars. We “believe” we cannot pass on the higher costs of, say, a a fruit that tastes good, they need to pay for it. Thompson Seedless grape and look for an alternative such as a bet- Let’s view $9 a gallon gas as a challenge to do better. Let’s forget ter-producing Sugraone to deliver “more or less” what the consumer about “cool to be green” but let’s be green so in five years, our kids wants at the “desired” price. On the one hand, we become more will think we are cool. pb Marc De Naeyer is the owner of Trofi BV, The Hague, The Netherlands.

SEPTEMBER 2008 • PRODUCE BUSINESS 159 INFORMATION Receive supplier information fast using the Produce Business Information Showcase. Here’s How: SHOWCASE 1) Please go to www.PRODUCEBUSINESS.com and click on The Electronic Rapid Response Card and enter the Reader Service numbers that correspond to the ad and the information showcase. 2) Contact the advertiser directly via the Web site, e-mail, phone or fax listed in the ad.

SEPTEMBER 2008 COMPANY PAGE # RS# PHONE FAX COMPANY PAGE # RS# PHONE FAX A&A Organic Marketing, Inc...... 34 ...... 56 ...... 831-768-0300 ...... 831-685-0302 Lambeth Groves...... 100 ...... 98 ...... 843-235-2081 ...... 843-235-2082 Agrexco USA, Ltd...... 45 ...... 120 ...... 718-481-8700 ...... 718-481-8710 Lange Logistics ...... 106 ...... 124 ...... 770-980-1101 ...... 770-980-1442 Albert’s Organics ...... 25 ...... 72 ...... 800-899-5944 ...... 610-444-0316 LGS Specialty Sales, Ltd...... 122 ...... 99 ...... 800-796-2349 ...... 718-542-2354 Alpine Fresh...... 102 ...... 4 ...... 305-594-9117 ...... 305-594-8506 Maine Potato Board ...... 127 ...... 125 ...... 207-769-5061 ...... 207-764-4148 Altar Produce LLC ...... 102 ...... 80 ...... 760-357-6762 ...... 760-357-8265 Mann Packing Company, Inc...... 9 ...... 64 ...... 800-884-6266 ...... 831-422-5171 Associated Potato Growers, Inc...... 127 ...... 132 ...... 800-437-4685 ...... 701-746-5767 J. Marchini & Son / LeGrand ...... 44 ...... 126 ...... 559-665-9710 ...... 559-665-9714 Ayco Farms, Inc...... 102 ...... 74 ...... 954-788-6800 ...... 954-788-5600 Martin Produce, Inc...... 56 ...... 140 ...... 970-352-6712 ...... 970-352-5687 B.R.S Produce Co./Frank Leone...... 86 ...... 81 ...... 215-467-7180 ...... 215-336-5220 Melissa’s/World Variety Produce, Inc...... 42 ...... 2 ...... 800-468-7111 ...... 323-588-7841 Wayne E. Bailey Produce Co...... 50 ...... 61 ...... 800-845-6149 ...... 910-654-4734 Miatech...... 51 ...... 49 ...... 800-339-5234 ...... 503-659-2204 Bard Valley Medjool Date Growers ...... 34 ...... 122 ...... 928-726-9191 ...... 928-726-9413 Michigan Apple Committee ...... 70 ...... 100 ...... 800-456-2753 ...... 517-669-9506 BelleHarvest Sales, Inc...... 72 ...... 82 ...... 800-452-7753 ...... 616-794-3961 Misionero Vegetables...... 43 ...... 33...... 800-EAT-SALAD ...... 831-424-0740 Bland Farms...... 78 ...... 133 ...... 800-440-9543 ...... 912-654-1330 Mission Produce, Inc...... 103 ...... 101 ...... 888-549-3421 ...... 805-981-3660 Blue Book Services ...... 147 ...... 134 ...... 630-668-3500 ...... 630-668-0303 MIXTEC Group...... 132 ...... 60 ...... 626-440-7077 ...... 626-440-1557 Jack Brown Produce, Inc...... 70 ...... 121 ...... 616-887-9568 ...... 616-887-9765 Nardella, Inc...... 84 ...... 16 ...... 215-336-1558 ...... 215-336-5757 Bushwick Commission Co., Inc...... 125 ...... 69 ...... 800-645-9470 ...... 516-249-6047 New York Apple Association, Inc...... 67 ...... 10 ...... 585-924-2171 ...... 585-924-1629 California Leafy Greens Marketing...... 139 ...... 83 ...... 916-441-1240 New York State Dept of Agriculture ...... 111 ...... 104 ...... 800-554-4501 Capital City Fruit Co., Inc...... 48 ...... 1 ...... 515-981-5111 ...... 515-981-4564 Niagara Fresh Fruit Co...... 72 ...... 102 ...... 716-778-7631 ...... 716-778-8768 Carb-Americas, Inc...... 102 ...... 12 ...... 954-786-0000 ...... 954-786-0775 North Bay Produce...... 103 ...... 14 ...... 231-946-1941 ...... 231-946-1902 CF Fresh...... 32 ...... 62 ...... 360-855-3192 ...... 360-855-2430 Ozonator, LLC ...... 42 ...... 37...... 877-678-FRESH ...... 760-862-2673 Chep USA Inc...... 7 ...... 127 ...... 800.CHEP. USA ...... 407-422-4614 P.E.I. Potato Board ...... 124 ...... 6 ...... 902-892-6551 ...... 902-566-4914 Chestnut Hill Farms ...... 102 ...... 8 ...... 305-592-6969 ...... 305-436-8969 Pandol Brothers, Inc...... 53 ...... 55 ...... 661-725-3145 ...... 661-725-4741 Chilean Avocado Importers Association...... 63 ...... 42 ...... 202-626-0560 Pear Bureau Northwest ...... 133 ...... 103 ...... 503-652-9720 ...... 503-652-9721 Classic Salads, LLC ...... 37 ...... 58 ...... 831-763-4520 ...... 831-763-1542 Peri & Sons Farms...... 43 ...... 52 ...... 775-463-4444 ...... 775-463-4028 Collotti & Sons, Inc...... 84 ...... 18 ...... 215-389-3335 ...... 215-755-9616 The Perishable Specialist, Inc...... 103 ...... 5 ...... 305-477-9906 ...... 305-477-9975 Columbia Marketing International ...... 131 ...... 75 ...... 509-663-1955 ...... 509-663-2231 Philadelphia Regional Produce Market ...... 89 ...... 79 ...... 215-536-3003 ...... 215-336-5542 Crystal Valley Foods...... 102 ...... 76 ...... 800-359-5631 ...... 305-592-9803 Pinto Brothers, Inc...... 91 ...... 17 ...... 800-523-4047 ...... 215-336-5422 Curry &Company...... 79 ...... 84 ...... 800-929-1073 ...... 503-393-6085 Pride of New York ...... 111 ...... 104 ...... 800-554-4501 Customized Brokers...... 102 ...... 85 ...... 305-471-8989 ...... 305-471-8988 Primavera Marketing, Inc...... 73 ...... 105 ...... 209-931-9420 ...... 209-931-9424 Date Pac LLC/Bard Produce Exchange Co. of Atlanta, Inc...... 48 ...... 63 ...... 800-480-4463 ...... 404-608-0401 Valley Medjool Date Growers...... 34 ...... 122 ...... 928-726-9191 ...... 928-726-9413 Produce for Better Health Foundation...... 149 ...... 31 ...... 302-235-2329 ...... 302-235-5555 Des Moines Truck Brokers, Inc...... 106 ...... 70 ...... 800-247-2514 ...... 515-981-0923 The Produce Marketing Association...... 23 ...... 24 ...... 302-738-7100 ...... 302-731-2409 Diamond Fruit Growers ...... 132 ...... 38 ...... 541-354-1492 ...... 541-354-2123 The Produce Marketing Association ...... 39 ...... 25 ...... 302-738-7100 ...... 302-731-2409 Dole Fresh Fruit Company ...... 117 ...... 40 ...... 818-879-6600 ...... 818-879-6628 Produce Plus ...... 106 ...... 36 ...... 800-323-3730 ...... 815-293-3701 Dole Fresh Vegetable Co...... 2 ...... 41 ...... 800-333-5454 ...... 831-754-5243 Produce Pro, Inc...... 98 ...... 46 ...... 630-395-9600 ...... 630-572-0390 dProduce Man Software ...... 98 ...... 50 ...... 888-PRODMAN ...... 650-712-9973 Progressive Marketing Group ...... 103 ...... 21 ...... 323-890-8100 ...... 323-890-8113 Duda Farm Fresh Foods, Inc...... 79 ...... 32 ...... 800-936-9363 ...... 956-631-0918 Quaker City Produce Co...... 96 ...... 107 ...... 215-467-5000 ...... 215-336-4416 Duda Farm Fresh Foods, Inc...... 137 ...... 86 ...... 866-669-8166 ...... 561-978-5705 Walter P. Rawl & Sons, Inc...... 138 ...... 130 ...... 803-894-1900 ...... 803-359-8850 Earthbound Farm ...... 29 ...... 87 ...... 888-624-1004 ...... 831-623-7886 Rice Fruit Company ...... 73 ...... 108 ...... 800-627-3359 ...... 717-677-9842 East Coast Brokers & Packers, Inc...... 163 ...... 29 ...... 800-557-7751 ...... 863-869-9850 Riveridge Produce Marketing, Inc...... 72 ...... 110 ...... 800-968-8833 ...... 616-887-6874 Eli & Ali, LLC ...... 35 ...... 39 ...... 866-354-2547 ...... 718-389-1514 Riveridge Produce Marketing, Inc...... 71 ...... 109 ...... 800-968-8833 ...... 616-887-6874 Fagerberg Produce Co...... 57 ...... 139 ...... 970-834-1353 ...... 970-834-1434 Rosemont Farms Corporation...... 103 ...... 71 ...... 561-999-0200 ...... 561-999-0241 Fagerberg Produce, Inc...... 79 ...... 128 ...... 970-834-1353 ...... 970-834-1434 Ryeco, Incorporated...... 92 ...... 20 ...... 215-551-8883 ...... 215-551-9036 Four Corners Farm...... 78 ...... 88 ...... 912-852-5098 ...... 912-852-5097 Sage Fruit Company...... 130 ...... 73 ...... 913-239-0060 ...... 913-239-0055 Four Seasons Produce, Inc...... 85 ...... 48 ...... 800-422-8384 ...... 717-721-2597 Sambrailo Packaging ...... 61 ...... 30 ...... 800-563-4467 ...... 831-724-1403 Frank Leone ...... 86 ...... 81 ...... 215-467-7180 ...... 215-336-5220 Setton International Foods, Inc...... 150 ...... 43 ...... 631-543-8090 ...... 631-543-8070 Fresh Partners AB ...... 145 ...... 135 ...... 46-8-742-1215 ...... 46-8-742-6201 Skyline Potatoes...... 55 ...... 111 ...... 719-754-3484 ...... 719-754-2200 Fresh Produce Association of The Americas ...... 144 ...... 89 ...... 520-287-2707 ...... 520-287-2948 Southern Specialties ...... 103 ...... 15 ...... 954-784-6500 ...... 954-784-5800 Genpro Transportation Services, Inc...... 105 ...... 23 ...... 800-243-6770 ...... 973-589-1877 Spice World, Inc...... 34 ...... 44 ...... 800-433-4979 ...... 407-857-7171 Giorgio Fresh Co...... 44 ...... 57 ...... 800-330-5711 ...... 610-939-0296 Stea Bros., Inc...... 91 ...... 9 ...... 215-336-7806 ...... 215-336-2194 The Giumarra Companies ...... 65 ...... 26 ...... 760-480-9133 ...... 760-489-1870 Stemilt Growers, Inc...... 40 ...... 112 ...... 509-662-9667 ...... 509-663-2914 Global Organic Specialty Source, Inc...... 45 ...... 129 ...... 877-952-1198 ...... 941-358-6551 Sun Valley Group ...... 155 ...... 54 ...... 800-747-0396 ...... 707-826-8708 Global Pest Management, Inc...... 102 ...... 68 ...... 562-997-9270 ...... 562-997-9280 Sun World International...... 47 ...... 35 ...... 760-398-9430 ...... 760-398-9613 GPOD of Idaho...... 77 ...... 7 ...... 208-357-7691 ...... 208-357-5151 Sunlight Int’l. Sales ...... 59 ...... 27 ...... 661-792-6360 ...... 661-792-6529 Habelman Bros...... 49 ...... 90 ...... 715-422-0410 ...... 608-372-5353 Sunrise Growers ...... 108 ...... 34 ...... 714-630-2050 ...... 714-630-0215 Harvest Sensations ...... 102 ...... 77 ...... 305-591-8173 ...... 305-591-8175 Sweet Onion Trading Company ...... 41 ...... 45 ...... 800-699-3727 ...... 321-674-2003 Herb Thyme Farms ...... 36 ...... 91 ...... 831-476-9733 ...... 831-476-3710 Symms Fruit Ranch, Inc...... 73 ...... 113 ...... 208-459-8064 ...... 208-459-6932 Hess Brothers Fruit Co...... 73 ...... 92 ...... 717-656-2631 ...... 717-656-4526 Tanimura & Antle, Inc...... 5 ...... 114 ...... 800-772-4542 ...... 831-455-3915 Holthouse Farms of Ohio ...... 50 ...... 59 ...... 419-935-0151 ...... 419-933-2178 Target Interstate Systems, Inc...... 93 ...... 131 ...... 800-338-2743 ...... 800-422-4329 Honey Bear Tree Fruit Co...... 73 ...... 136 ...... 952-746-1315 ...... 952-746-1316 Team Produce International, Inc...... 103 ...... 11 ...... 800-505-0665 ...... 305-513-9596 Hunter Brothers Inc...... 86 ...... 19 ...... 215-336-4343 ...... 215-336-4340 Thermal Technologies, Incorporated...... 31 ...... 53 ...... 803-691-8000 ...... 803-691-8010 Idaho Potato Commission...... 75 ...... 93 ...... 208-334-2350 ...... 208-334-2274 Trinity Fruit Sales ...... 73 ...... 115 ...... 559-433-3777 ...... 559-433-3790 International Hotel Motel & Rest...... 145 ...... 78 ...... 800-272-SHOW Turbana Banana Corp...... 27 ...... 116...... 888-BANANAS ...... 305-443-8908 Jacobs, Malcolm & Burtt, Inc...... 103 ...... 3 ...... 415-285-0400 ...... 415-824-4844 United Fresh Produce Association...... 33 ...... 28 ...... 202-303-3400 ...... 202-303-3433 E.W. Kean Co., Inc...... 96 ...... 94 ...... 215-336-2321 ...... 215-336-1596 A. Vassallo, Inc...... 92 ...... 117 ...... 215-336-1984 ...... 215-336-7955 Kern Ridge Growers, LLC ...... 145 ...... 51 ...... 661-854-3156 ...... 661-854-2832 John Vena, Inc...... 88 ...... 13 ...... 215-336-0766 ...... 215-336-2812 Keystone Fruit Marketing, Inc...... 79 ...... 96 ...... 717-597-2112 ...... 717-597-4096 Vidalia Onion Committee ...... INSERT ...... 66 ...... 912-537-1918 ...... 912-537-2166 Keystone Fruit Marketing, Inc...... 103 ...... 22 ...... 772-316-0364 ...... 772-316-0366 VIP Marketing, Inc...... 53 ...... 118 ...... 213-833-7784 ...... 213-833-7788 Keystone Fruit Marketing, Inc...... 72 ...... 95 ...... 717-597-2112 ...... 717-597-4096 Well-Pict Berries ...... 164 ...... 137 ...... 831-722-3871 ...... 831-722-6340 T.M. Kovacevich - Philadelphia, Inc...... 87 ...... 97 ...... 215-336-3160 ...... 215-336-2866 Wisconsin Potato & Vegetable Growers ...... 81 ...... 119 ...... 715-623-7683 ...... 715-623-3176 Lakeside Organic Gardens ...... 45 ...... 123 ...... 831-761-8797 ...... 831-728-1104 Yakima Fresh LLC ...... 129 ...... 67 ...... 800-541-0394 ...... 847-685-0474

160 PRODUCE BUSINESS • SEPTEMBER 2008 You work hard... Your advertising should too.

Building your produce business demands the best you have to offer. Long hours. Tough decisions. Making sure you get the most for each dollar. Reaching for the competitive edge. All reasons why your advertising should be in PRODUCE BUSINESS. PRODUCE BUSINESS is the industry’s leading magazine reaching more purchasing decision-makers than any other produce publication. Its articles, departments and columns are unique… exploring the business of produce, presenting ways to run businesses better, and searching out new business opportunities for its readers. Quality editorial combines with a quality environment for your advertising message. Look through the pages of this issue. Superior paper. Excellent color. A permanently bound magazine, every month. You’ve earned your business’ reputation by giving a little extra, striving to be the best. Shouldn’t the place you advertise reflect your effort? To find out more about how PRODUCE BUSINESS can make your advertising work harder for you, give us a call.

P.O. Box 810425 • Boca Raton, FL 33481-0425 561-994-1118 • Fax: 561-994-1610 www.producebusiness.com Blast from the Past ll the cards were in Albert Lusk’s favor when he founded Albert’s A Organics, Inc., the Bridgeport, NJ-based distributor of organically grown produce and fresh perishable foods. He opened shop in Los Angeles, CA, in 1982, just as organ- ics were starting to make inroads in the produce industry. This 1982 photo taken at a warehouse in Los Angeles shows the original members of the Albert’s Organics team. Lusk is in the upper right corner. “It was exquisite timing,” states Simcha Weinstein, director of marketing. “In the late 1970s and early 1980s, [Lusk] saw a gap between the slew of organic growers in Califor- nia and the natural-food stores that were doing really well. He said ‘I can be their intermediary partner’ — and he did it.” Back then, organics were steadily growing, but they were confined to natural-food stores, Weinstein explains. “As the baby boomers came of age and start- ed having babies, they bought more organic foods. As large chains saw the popularity, they came on board with [the organic movement], too.” In 1989, Albert’s, now a subsidiary of Dayville, CT- based United Natural Foods (UNF), Inc., opened its first East Coast office in Bridgeport. Since the 1980s, its product line of more than 350 SKUs has grown from “all the staples” to just about every organic item “from cactus leaves to broc- coli,” notes Weinstein. “While produce is still our largest seller, of course, our fresh perishable items are rapidly growing, too.” Today, it’s hard to find a city or college town where organics aren’t sold. As organics continue to become more mainstream, Weinstein believes the category will continue to grow and, eventu- ally, will no longer be perceived as just a category. “If history is any indication, we can expect more of it,” he adds.

The Blast from the Past is a regular feature of PRODUCE BUSINESS. We welcome submissions of your old photos, labels or advertisements along with suggested captions. Please send materials to: Editor, PRODUCE B USINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail [email protected]

162 PRODUCE BUSINESS • SEPTEMBER 2008 800-557-77 51 or 863-425- 3500 With theproper blendofthebesttraditionandstate-of-the-arttechnology, Batista MadoniaJr. we takegreat prideinproviding besttomatoes. ourcustomerswiththevery Sales Manager G ROWERS Evelyn M.Madonia,ExecutiveVice President/Secretary-Treasurer Year-round—from PallettoPlate,thechoiceisclear. • Batista MadoniaSr. President &CEO P ACKERS Rosemary Madonia, Rosemary Comptroller • B ROKERS • Fax: 863-869-9850 • S All Growing Operations HIPPERS Stephen Madonia

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