In the News: Key Headlines Varietal Update

December 27, 2018

IN THE NEWS: KEY HEADLINES Sunkist’s sales and marketing teams monitor consumer, food and industry trends to stay up to date on the marketplace. In this section, notable recent headlines are highlighted for quick reference, in addition to the broader news and trend update later in the newsletter.

Spending more time at home cooking healthy dishes is a top resolution for many in 2019, Peapod finds [Mary Ellen Shoup, Food Navigator] Food Navigator reports that online grocer Peapod’s third annual meal forecasting survey revealed a growing appreciation for home cooked meals and that spending more time in the kitchen cooking healthy dishes is a top resolution for many in 2019.

More evidence fruits and greens can be good for the brain [Lisa Rapaport, Reuters] Reuters reports that middle-aged men who eat lots of fruits and vegetables may be lowering their odds of cognitive problems as they get on in years, compared to peers who don’t consume these foods very often, a U.S. study suggests.

Retailers urged to display lots of organic produce [Jim Offner, The Packer] The Packer reports that in 2017, organic sales set a new standard in the U.S., and fresh produce played a key role in that achievement, according to the Washington, D.C.-based Organic Trade Association. U.S. organic sales totaled $49.4 billion in 2017, up 6.4% from 2016 and reflecting new sales of nearly $3.5 billion, according to the OTA’s 2018 Organic Industry Survey.

VARIETAL UPDATE

ORANGES Navels are available with sizes peaking at 88/113/72 or 88/72/113. Good volumes of Organic Navels are available in all sizes, peaking at 88s and smaller.

Cara Cara Navels are peaking on 88s and smaller with good volumes of Sunkist Grade fruit. Choice Grade has limited availability. Fruit has full color with a nice pink interior. Organic Cara Caras are coming soon.

Blood oranges are in good supply with sizes peaking at 138/163/113. Full orange exterior with a deep internal blush. Organic Bloods are coming soon.

LEMONS Lemons are currently shipping from all three districts, with the majority of the supply from District 3.

LIMES Sunkist is shipping limes with lemons in Ventura County, California.

MANDARINS & TANGERINES Satsumas are available and sizes run from MED thru SCL. Fruit is eating very well with exceptional flavor.

Sunkist Delite® mandarins are available with sizes peaking on the larger side at 32/28/24, followed by size 36. Flavor is sweet and juicy with a smooth glossy exterior.

Organic Daisy mandarins are shipping now with sizes peaking on LGE/JMB/MAM.

Fairfield tangerines are available with sizes peaking on MAM/JMB/LGE. Fruit has a dark orange exterior and tart flavor.

TANGELOS Orlando tangelos are available and sizes are peaking at JMB/MAM/LGE. Fruit has a light orange exterior with a slightly flat shape and pebbled texture.

Minneola tangelos are available and sizes are peaking at 88/64/56, followed by size 100. Fruit has a bold tangy flavor with a deep red exterior. Organic Minneola Tangelos are now harvesting with sizes peaking at 80/64/100.

GRAPEFRUIT Star Ruby Organics, the new organic California grapefruits, are now available with sizes peaking at 48/40/36, 80 percent of the supply is Fancy Grade.

Texas Grapefruit is in peak of season and the demand is very strong. Larger sizes, 32s are limited. The overall size structure is peaking on smaller sizes at 40/48/45/36.

PUMMELOS Pummelos are available in good supply across all peak sizes, with a high demand of 12/14/18/10, mostly Sunkist Grade. Pummelos are in peak season in both maturity and demand as we move closer to the Chinese New Year. Fruit has an exterior light green to yellow color break and a ruby blush interior.

SPECIAL BULLETINS

The CCQC WELCOMES BACK THE PESTICIDE RESIDUE SAMPLING PROGRAM Over the past several years, the California Citrus Quality Council (CCQC) has been gathering data for preharvest pesticide residues through the sampling and residue analysis program. The data helps determine residues typically found on fruit when it arrives in the market, and assists CCQC in responding to notifications of proposed changes to current MRLs.

The program will restart in December, and CCQC is inviting packinghouses to submit samples; the lab will also provide sample results directly to the packinghouse at no cost. The data is solely for industry-use and remains confidential. For more information, please contact the CCQC at (530) 885-1894, or email Carleen Price [email protected] or Jim Cranney, at [email protected].

ECOFARM CONFERENCE “RESILIANCE IS FERTILE” – JANUARY 23-26, 2019 The 39th Ecological Farming Conference (EcoFarm) will be held January 23-26, 2019 at the Asilomar State Beach and Conference Grounds in Pacific Grove, California. EcoFarm serves as an education session and networking event for farmers who strive for ecologically sustainable farming practices.

This year’s conference will offer more than 70 workshops to choose from, including sessions on certifications and organic regulations, soil, fertility, pest management, production tools, labor practices and community involvement, to name a few. In addition to the educational sessions, the conference will feature an exhibitor marketplace, farm tours, tastings and live entertainment.

For more information and to register, visit eco-farm.org/conference.

SOUTHWEST AG SUMMIT IS SCHEDULED FOR FEBRUARY The Southwest Ag Summit returns to Yuma, Arizona February 19-22, 2019. Hosted at the Arizona Western College, the industry show will focus on products grown and distributed from Arizona, New Mexico, Southern California and Northern Mexico. Summit topics include fresh produce safety, irrigation management, energy conservation and innovative technologies.

For detailed information on the Southwest AG Summit schedule of events, visit yumafreshveg.com/southwest-ag-summit/.

SALES & MARKETING UPDATE

CANADA: SUPERMARKET CHAIN PROMOTES SUNKIST CITRUS WITH CO-BRANDED DISPLAY BINS After a smaller, yet successful partnership in 2018, Sunkist and Metro, a Quebec-based supermarket chain, are collaborating again with co- branded, bilingual display bins in 125 stores.

Throughout the entire month of January, each store will display four classic black quarter bins featuring Cara Cara Navels, Blood oranges, Minneola tangelos and grapefruit, in addition to two organic square bins to give shoppers a vast selection of Sunkist fresh citrus. The bilingual text promotes each variety’s flavor profile in both English and French. The co-branded promotion will include flyer ads to drive purchase intent.

NEW ZEALAND: NEW WORLD SUPERMARKET CHAIN PARTNERS WITH SUNKIST Sunkist and MG Marketing are teaming up in the global market this January to promote multiple varieties, including Sunkist Delite® Mandarins in New Zealand. The New World Supermarket chain will display 60 Sunkist Delite® quarter bins paired with 42 in-store demo events to provide shoppers with the experience of trying this fresh, seedless and easy to peel variety.

New World is also displaying 100 multi-variety classic black square bins to offer shoppers more varieties, based on individual store selection.

CONSUMER NEWS & TREND UPDATE In this section of the grower newsletter, Sunkist summarizes consumer and industry news stories that the sales and marketing teams are following to inform the positioning of our brand and citrus portfolio.

FOOD INDUSTRY NEWS AND TRENDS Consumers will embrace brands that ‘do the right thing,’ AF & Co. trendologists predict [Elizabeth Crawford, Food Navigator] Food Navigator reports that from the “volatile government situation” to the “crazy acts of nature” across the nation and “senseless hate crimes,” many consumers in the US are feeling uneasy and looking for a way to “escape from some of the badness” by visiting hotels, restaurants and supporting CPG brands that are doing the right thing.

Pinterest Reveals Its Top Food Trends for 2019 [Caitlin Petreycik, Food & Wine] Food & Wine reports that Pinterest has released a (hyper photogenic) 2019 food trend list. The list includes eating pegan, grazing tables, foil pack dinners and homemade jam to name a few.

Food-benefits recipients need a better shopping experience [Carolyn Crist, Reuters] Reuters reports that parents who receive supplemental food vouchers for grocery shopping need a better retail experience to make the most of the benefits, U.S. researchers say. When shoppers have a difficult time identifying allowable items under the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program, and then feel stigma during checkout, they’re more likely to feel frustrated and uncomfortable and not use the benefits, the study authors write in the Journal of the Academy of Nutrition and Dietetics.

Food system organizations must strengthen their operations to safeguard against potential threats [Science Daily] Science Daily reports that food systems face growing threats as extreme weather events become more common and more extreme due to climate change. A new study highlights characteristic of organizations involved in the food system that may lead them to be more prepared to respond to such disasters, and opportunities for local, state, and federal organizations to improve resilience across the urban food system.

FOODSERVICE NEWS Postmates introduces a robot to roam sidewalks delivering food [Krista Gmelich, Bloomberg] Bloomberg reports that Postmates Inc., which shuttles food from restaurants to hungry customers, unveiled Thursday a bright-yellow, Minion-looking cube on wheels dubbed Serve. The little rover will initially be deployed in Los Angeles, but Postmates aims to roll out more of them in other cities across the U.S. in the next 12 months. Read the full article here.

Chick-fil-A now delivers chicken sandwiches and waffle fries nationwide [Chris Fuhrmeister, Eater] Eater reports that Chick-fil-A has announced it is partnering with DoorDash to offer delivery at more than 1,100 of its restaurants across America. Of course, customers will still have to answer their doors and accept their food from DoorDash delivery drivers.

WELLNESS NEWS Orange juice, leafy greens and berries may be tied to decreased memory loss in men [Science Daily] Science Daily reports that eating leafy greens, dark orange and red vegetables and berry fruits, and drinking orange juice may be associated with a lower risk of memory loss over time in men.

Diet rich in fruits and vegetables tied to fewer menopause symptoms [Lisa Rapaport, Reuters] Reuters reports that women who eat lots of fruits and vegetables may experience fewer physical and mental health symptoms of menopause than those who prefer to dine on sweets, fats and snacks, an Iranian study suggests. Researchers surveyed 400 women who had already gone through menopause about their eating habits as well as their recollection of how often they experienced symptoms like hot flashes, night sweats, muscle and joint problems and bladder issues.

CITRUS AND INDUSTRY NEWS Sunkist Growers' Christina Ward Discusses the Citrus Season [Robert Schaulis, AndNowUKnow] AndNowUKnow reports that citrus varieties of all shapes and sizes are available throughout this holiday season and well into spring, and Sunkist Growers is gearing up for another great season. “Sunkist has more than 40 varieties of fresh quality citrus for the season,” said Christina Ward, Director of Communications. “And for us we always say, ‘you can’t spell citrus without us.’ The cornerstone of our co-op is our growers and that’s where that concept really came from. It’s citrus season, and it’s that time of year for California- grown Navel oranges. It’s an exciting time.”

Sunkist Delite® mandarins are back and in demand [The Produce News] The Produce News reports that Sunkist Delite® mandarins are back and shipping to retailers around the globe. The California-grown Sunkist Delite® mandarins debuted last year, tripling in sales its first season, making it one of the leading brands in its category.  Additional coverage: The Packer

10 foods you should be eating more of as you get older [Cheyenne Lentz, INSIDER] INSIDER reports that our metabolism and health change a lot as you get older. By your late 20s, you likely will notice that you can't eat the same things you once did and still feel good and as such, your diet may become more of a priority. It becomes all the more important to eat and maintain a balanced diet, and there are some foods that are loaded with just the nutrients that your body needs, including citrus fruits. Citrus should be eaten whole, preferably with the skin and, when organic, have a bit of the peel or zest too. There is some evidence to support this, however, more research needs to be done in regards to limonene's anticancer properties.

Did you know antibiotics are being used in citrus? Here are the facts [Robert Rodriguez, Fresno Bee] Fresno Bee reports that the U.S. Environmental Protection Agency has approved the use of two antibiotics in the fight against a dreaded citrus disease, despite concerns from critics who fear it may contribute to the development of antibiotic-resistant diseases in humans. The two drugs, streptomycin and oxytetracycline, have been used in Florida for the last several years as a last-ditch effort to try to slow the progress of citrus greening, or huanglongbing. The disease has decimated the state’s citrus industry with economic losses totaling $9.1 billion according to the University of Florida.

Rising heat from climate change threatens U.S. crop yields [Jen Skerritt, Bloomberg] Bloomberg reports that American farmers’ livelihoods are at risk from climate change as Midwestern grain yields are poised to tumble amid increasing temperatures and more extreme flooding and droughts. Rising heat, drought, wildfires and heavy downpours are expected to increasingly disrupt agricultural productivity in the U.S., according to a National Climate Assessment report released Friday. Read the full article here.

Organic produce consumption continues steady rise [Jim Offner, The Packer] The Packer reports that with consumption of organic products having set a new standard across the U.S. in 2017, organic produce suppliers say they’re poised for further growth. At one time, a typical grocery store’s produce department might have one or two organic items placed within a sea of conventional rivals; now, that isn’t the case, Velazquez de Leon said.

INDUSTRY NEWS RESOURCES

Stay connected to the industry by connecting with these groups, who regularly issue important updates about industry meetings, regulatory matters and more. California Citrus Mutual California Citrus Quality Council Citrus Pest & Disease Prevention Program’s Citrus Insider

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