Reader Service # 14 FEB. 2010 • VOL. 26 • NO. 2

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COVER STORY FEATURES FOOD SAFETY: TRICKS OF THE TRADE FOR SUCCESSFUL OFFENSE OR DEFENSE? ...... 14 SPRING MERCHANDISING ...... 23 As we mature as an industry in Focus on holiday promotions to get consumers the food safety arena, how are we thinking about fresh produce in the Spring. balancing defensive and offensive strategies? DESPITE RECORD-BREAKING COLD, FLORIDA PRODUCE WILL RECOVER ...... 30 As farmers deal with the repercussions of the recent cold snap, they continue to COMMENTARY be optimistic, ensuring Florida will continue to be a leader in produce production. THE FRUITS OF THOUGHT MEXICAN MANGOS — CHOOSING BEYOND COLOR ...... 34 Best Laid Plans ...... 8 As American consumers learn more about the many mango varieties available, color may matter less and less. RETAIL PERSPECTIVE Evaluating Sales Results ...... 91 GREENHOUSE PRODUCE: CHALLENGES & OPPORTUNITIES ...... 43 The popularity of greenhouse-grown produce continues to rise EUROPEAN MARKET as it provides a variety of produce during the “off” season. How Americans And Europeans Buy Food ...... 92 THE PALLET PUZZLE: (PART II OF II) ...... 51 Technological advancements and the continuing investigation on behalf of USDA’s APHIS further complicate pallet decisions.

IN EVERY ISSUE VALUE-ADDED POTATOES: CHALLENGES & OPPORTUNITIES ...... 56 THE QUIZ ...... 4 While they might be a bit more costly, the value-added potato category represents a convenient and attractive buy for families who are cooking more at home WASHINGTON GRAPEVINE ...... 6

RESEARCH PERSPECTIVES ...... 10

COMMENTS AND ANALYSIS ...... 11 DEPARTMENTS MERCHANDISING REVIEWS: PRODUCE WATCH ...... 12 Merchandising Asparagus Year-Round ...... 75 Many consumers are still learning asparagus is a “seasonless” item. FLORAL WATCH ...... 88 DRIED FRUIT AND NUTS: BLAST FROM THE PAST ...... 94 Merchandising Packaged Nuts ...... 86 With numerous health benefits, nuts belong in the INFORMATION SHOWCASE ...... 94 produce department, on their own, eye-catching display. FLORAL & FOLIAGE MARKETING: Signage Sells ...... 89 Easy to implement, signage and POS materials are cost-effective elements of the floral sales strategy that attract, educate and enlighten consumers.

SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE PUNDIT 94 Wal-Mart’s Blind And Costly Focus On FOBs...... 7 REGIONAL PROFILE: TORONTO SPECIAL SUPPLEMENT Toronto Turns It On...... 66 With a steady stream of business, Toronto’s Ontario Food Terminal takes advantage of an ethnically diverse consumer base and proves it’s here for the long haul.

Make Way For McEwan...... 74 Produce Software Supplement Relying heavily on his background as a Chef, Mark McEwan brings a starts on page 81 European-style green grocer to Toronto.

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.

FEBRUARY 2010 • PRODUCE BUSINESS 3 PRODUCE QUIZ

FEB. 2010 • VOL. 26 • NO.2 THIS MONTH’S WINNER: With a grandfather who served as meat President & Editor-in-Chief • JAMES E. PREVOR [email protected] director for a national grocery chain and farmers on both sides of her family, it’s no Publisher/Editorial Director • KEN WHITACRE Shaleen Heffernan surprise Shaleen ended up in the produce [email protected] Account Manager industry. After spending much of her youth Special Projects Editor • MIRA SLOTT Agrexco USA around the world, she settled in New York [email protected] Jamaica, NY selling truffles for Sabatino, a company that Assistant Editor • AMY SHANNON later merged with Baldor. Eventually, she [email protected] found her way to Agrexco, where she is an account manager. “They needed someone Assistant Editor • JENNIFER LESLIE KRAMER [email protected] who spoke Arabic and I fit the bill,” she says. How To Win “About 40 percent of my customers are Circulation Manager • KELLY ROSKIN To win the PRODUCE BUSINESS Quiz, the first Middle Eastern so I get to use my language [email protected] thing you have to do is enter. The rules are skills constantly.” Executive Assistant • FRAN GRUSKIN simple: Read through the articles and Shaleen relies on PRODUCE BUSINESS to keep [email protected] advertisements in this issue to find the her informed on what’s going on in the answers. Fill in the blanks corresponding industry. “It is so great to find a trade publica- European Bureau Chief • ROBERT ZWARTKRUIS to the questions below, and either cut along [email protected] the dotted line or photocopy the page, and tion that has such passion, information and send your answers along with a business enthusiasm. It gives you information you can Production Director • DIANA LEVINE [email protected] card or company letterhead to the address relate to everyone at every level.” listed on the coupon. The winner will be While Shaleen currently focuses on dates Production Leader • JACKIE TUCKER chosen by drawing from the responses and pomegranate arils, “We have so many received before the publication of our other products that I want to learn about and Production Department FREDDY PULIDO April issue of PRODUCE BUSINESS. The winner get more involved with. I can’t imagine doing JOANNA ARMSTRONG must agree to submit a color photo to be anything else. I’m addicted to produce!” published in that issue. Director of Online Communications JASON KAHAN WIN A HOME THEATER POPCORN MACHINE Trade Show Coordinator • JACKIE LOMONTE Make the most of movie nights with this countertop popcorn machine, which [email protected] holds up to 50 cups of popcorn. A retractable, no-spill serving door, built-in Contributing Editors warmer and stainless steel and glass frame makes serving and clean-up a CAROL BAREUTHER, THERESA BRAINE, KEN HODGE, breeze. Includes a scoop, measuring cup and paper serving cups for a true JACKIE LIEBERMAN, JODEAN ROBBINS DUARTE, movie experience. JON VANZILE Advertising QUESTIONS FOR THE FEBRUARY ISSUE ERIC NIEMAN, ASSOCIATE PUBLISHER [email protected] 1) What is the phone number for Duda Farm Fresh Foods?______JENNIFER JORDAN [email protected]

2) Where is Produce for Better Health Foundation’s Gala at the Castle? ______SANDY LEE [email protected] BILL MARTIN [email protected]

3) What brand of mangos does Ciruli Brothers market? ______ELLEN ROSENTHAL [email protected] Floral Department Marketing E. SHAUNN ALDERMAN 4) Does Sunset Produce grow mini peppers? [email protected] Send insertion orders, payments, press releases,photos, letters to the editor, etc., to: 5) What is the title of Episode 5 of Adventures of the Idaho Potato Retailer? ______PRODUCE BUSINESS P.O. Box 810425 ______Boca Raton, FL 33481-0425 Phone: 561-994-1118 Fax: 561-994-1610 E-mail: [email protected] 6) Who is the operations manager for Ippolito Produce ? ______PRODUCE BUSINESS is published by Phoenix Media Network, Inc. James E. Prevor, Chairman of the Board P.O. Box 810425 This issue was: ❏ Personally addressed to me ❏ Addressed to someone else Boca Raton, FL 33481-0425 Phone: 561-994-1118 Fax: 561-994-1610 Name ______Position ______Entire contents © Copyright 2010 Phoenix Media Network, Inc. Company ______All rights reserved. Printed in the U.S.A. Address ______Publication Agreement No. 40047928 City______State ______Zip ______Phone ______Fax ______Photocopies of this form are acceptable. Please send answers to: FEBRUARY QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425

4 PRODUCE BUSINESS • FEBRUARY 2010 SAVE THE DATE!

NOVEMBER 9-11, 2010 NEW YORK CITY

CONTACT INFORMATION:

FOR REGISTRATION FOR BOOTH SALES EASTERN PRODUCE COUNCIL PRODUCE BUSINESS AND SPONSORSHIPS Fran Gruskin John McAleavey Ken Whitacre Ph: 212-426-2218 Eric Nieman, Ellen Rosenthal, Ph: 973-564-6295 Ph: 561-994-1118, ext 101 Jennifer Jordan, E-mail: Bill Martin, Sandy Lee, E-mail: E-mail: [email protected] Shaunn Alderman [email protected] [email protected] Ph: 212-426-2218 E-mail: [email protected] WASHINGTON GRAPEVINE A report on the inside happenings of government.

SUBMITTED BY ROBERT GUENTHER, SENIOR VICE PRESIDENT OF PUBLIC POLICY • UNITED FRESH PRODUCE ASSOC. Produce Is A Priority In 2010

s lawmakers bear down on a vices is needed for improving outbreak In their announcement, EPA stated, full agenda for 2010, the pro- investigations, many of the tough issues “after a thorough examination of the scientif- duce industry has many irons have been addressed in this legislation, lead- ic evidence and careful consideration of in the fire. Moreover, House ing to the broad bipartisan support it cur- public comments... GHGs threaten the ... Agriculture Committee Chair- rently enjoys. It provides a clear roadmap to health and welfare of the American people. Aman Collin Peterson (D-MN) announced he pursue a set of policy recommendations that EPA also finds GHG emissions from on-road might begin hearings on the next Farm Bill brings us closer to a comprehensive food vehicles contribute to that threat.” reauthorization. safety program and will achieve our goals of Previously, EPA had not classified GHGs Here’s a broad look at what action the a stronger fresh produce industry. as a danger to human health and therefore produce industry can expect from Capitol took no action under the Clean Air Act, but Hill in 2010: CHILD NUTRITION with this latest announcement, the adminis- In December, Congressmen Sam Farr (D- tration is now able to act unilaterally to FOOD SAFETY CA) and Adam Putnam (R-FL) introduced reduce emissions from a variety of sources In November, the Senate Health, Educa- the Children’s Fruit and Vegetable Act of throughout the U.S. economy. The develop- tion, Labor and Pension Committee (HELP) 2009 (H.R. 4333). The bill is an important ment serves to pressure Congress to come passed the Food Safety Modernization Act of step in calling attention to the simple, but up with a legislative solution. However, leg- 2009 (S.510). Introduced last March, the legis- powerful role school salad bars stocked with islation could preempt or constrain EPA’s lation represents the first major move by the fruits and vegetables can have in improving discretion in regulating emission sources, Senate to reform the nation’s food safety laws. kids’ health. including many that are either on the farm, Highlights of the bill include provisions Research has shown that school children involved in production of inputs, or through- for hazard analysis and preventive controls, significantly increase their consumption of out the agricultural supply chain. requiring all facilities that manufacture, fruits and vegetables when given a variety process, pack or hold food to have in place of choices, such as in a school salad bar. LABOR AND IMMIGRATION risk-based preventive control plans to When offered multiple fresh fruit and veg- The path to comprehensive immigration address identified hazards and prevent adul- etable choices, children respond by trying reform cleared somewhat in December teration. It also gives FDA access to these new items, incorporating greater variety when Congressman Luis Gutierrez (D-IL) plans and relevant documentation; stipula- into their diets and increasing their daily introduced the Comprehensive Immigration tion that importers must verify the safety of consumption of fruits and vegetables. Per- Reform for America’s Security and Prosperi- foreign suppliers and imported food; a haps more importantly, increased daily ty Act of 2009. Included in the bill is lan- requirement that FDA boost the frequency access to a variety of fresh produce items guage from the Agricultural Job Opportuni- of inspections of all food facilities; mandato- provides a personal experience about choic- ties, Benefits and Security Act (AgJOBS), ry recall authority for FDA if a certain food es that can shape behavior far beyond the which would address the legalization of will cause serious adverse health conse- school lunch line. Children learn to make undocumented migrant farm workers in the quences or death and a company has failed decisions that carry over outside of school, United States. to voluntarily recall the product upon FDA’s providing a platform for a lifetime of AgJOBS enjoys broad support within the request; the authority to administratively healthy snack and meal choices far beyond industry as a balanced, comprehensive solu- detain any food that is misbranded or adul- the produce consumed at school. tion for the agricultural labor crisis in the terated under the Food, Drug and Cosmetic United States. This legislation could poten- Act; and an increase in funding for FDA’s CLIMATE CHANGE tially provide relief to agricultural employ- food safety activities. Just before the beginning of December’s ers who have been adversely affected by tar- Also included is a comprehensive plan to two-week international climate change con- geted immigration enforcement by state and incorporate a commodity-specific, risk- and ference in Copenhagen, Denmark, the Envi- federal authorities. What’s more, AgJOBS science-based approach to develop specific ronmental Protection Agency (EPA) formal- would address this confusion caused by the standards for the safety of fresh produce. ly announced its intent to regulate green- federal government’s repeated modifications The legislation represents an aggressive house gas emissions (GHGs). This action, to regulations for temporary worker pro- and comprehensive approach to reforming taken in the form of an “endangerment find- grams, causing significant confusion and food safety laws. While further direction to ing” gives the agency the power to regulate economic harm to farmers and other the Department of Health and Human Ser- GHGs under the Clean Air Act. employers across the United States.

6 PRODUCE BUSINESS • FEBRUARY 2010 From The Pages Of The Perishable Pundit Wal-Mart’s Blind And Costly Focus On FOBs

From Jim Prevor’s Perishable Pundit January 18, 2010

ur piece, Flaws In Wal-Mart’s Produce-Procurement Thinking [Janu- if I can name the terms.” ary 5, 2010], brought a number of interesting responses. For exam- Second, Wal-Mart could compare its costs against its last year’s con- O ple, a prominent retail produce executive made this comment: tract, but it can’t know what it would have paid on a fictitious contract As per normal, great article and insight on Wal-Mart Procure- that never was actually negotiated. So, as Dan points out, if the apple ment. We experienced this same confused logic prior to our split market is weak, maybe it could have saved more under its old program. with the Mother ship. When folks with little industry experience are Third, the impact on consumers can be significant and deleterious to making the grand plan decisions, the lower level folks generally Wal-Mart. The Pundit used to ship a lot of Fancy Goldens to Europe — did make the numbers be whatever they need to be. it for years with satisfied customers. Then one year, all the customers in With all the moving parts that exist within produce logistics, Europe started complaining: These were not Fancy apples. saving the 10 percent based on some esoteric metric is like play- We did an investigation and it turned out that the particular year ing the game of shells. It’s probably still happened to be a bad one for quality. In there somewhere, but you just need to prior years, the typical fruit shipped as find it. It could be hiding in brokerage Fancy well exceeded the minimum require- fees, freight cost, cooling and palletiza- ments. The market had become conditioned tion fees, sizing, quality or any number So the consequence of to thinking Fancy meant product that well of below-the-line costs. exceeded minimum requirements for the Now the more interesting thing is Wal-Mart’s switch is grade. that, in general, apple prices are down that its shoppers will When Wal-Mart was under contract, its ven- significantly from last year. We experi- dors had an obligation to meet volume require- enced a high market for the 2008 crop, have lower quality ments week in and week out at the agreed and the 2009 crop gave us plenty of vol- produce than they did price. Sometimes, although the contract may ume on the sizes we want... so the mar- have been based on a particular grade, say U.S. ket actually fell when compared to last before. What is the Extra Fancy, the shippers wound up delivering year. Not by 10 percent... but by an aver- longterm cost to better grades, say Washington Extra Fancy, to age of almost 19 percent. So... if I as a meet their obligations. buyer have been given the charge to Wal-Mart of handling a Now the shippers can pick and choose save 10 percent on apple costs, and the lower quality when to bid for the Wal-Mart business; that market drops 19 percent, can I deliver won’t happen very much. the targeted 10 percent savings and package — even if it So the consequence of Wal-Mart’s switch is make my performance goals?? that its shoppers will have lower quality pro- Oh yeah, you betcha! meets minimum duce than they did before. What is the long- — Dan Sutton, director of produce, Wal-Mart specs? term cost to Wal-Mart of handling a lower qual- Albertsons LLC, Boise, ID ity package — even if it meets minimum Wal- We appreciate Dan’s willingness to point Mart specs? out the enormous problem with these types of Fourth, Wal-Mart didn’t just buy apples and pronouncements. When The Financial Times reported Wal-Mart was transport... it bought a range of services that fall under a category of busi- claiming its Washington apple procurement experiment, was saving it 10 ness analysis. Just a tiny shift here can result in thousands of incidents of percent, it is hard to give very much credence to that. being out of stock. Under the old system, if Wal-Mart was out of stock, First, as Dan Sutton points out, if you focus on getting low FOBs, you that counted against the vendor and would affect the chain being award- can get low FOBs — that doesn’t mean lower total cost. We’ve sat in ed future business. offices and watched sellers say: This guy is focused on getting the FOB Who does it count against now? Nobody. Which means out-of-stocks down, so let’s up the transportation and cut the FOB. will zoom. This means that even if they are successful in reducing pro- We are reminded of the slogan emblazoned behind the desk of Meshu- curement costs — the whole procedure will still cost Wal-Mart a fortune. lam Riklis, the businessman more famous for manipulating financial This is what happens when people who don’t know the business seize structures (and for marrying and promoting the career of Pia Zadora) on something they can quantify — cost of goods sold — and work to than for actual business. The motto he lived by: “You can name the price reduce it without really understanding the consequences of their actions.

FEBRUARY 2010 • PRODUCE BUSINESS 7 THE FRUITS By James Prevor OF THOUGHT President & Editor-in-Chief Best Laid Plans...

uch of the time the produce industry goes on like directly with farmers, so they are removed from the reality of the any other: Products are positioned, branded, farm. In addition, the high prices, limited availability and low quali- packaged, marketed and merchandised like most ty can continue long after the weather event, and the ability of con- consumer products. Then, every once in a while, sumers to connect high prices to a weather problem six weeks earli- we have a freeze or El Niño strikes and, all of a er is questionable. Msudden, like a puppy on a leash suddenly tugged while running, Then, of course, we have to realize that consumers have their we are shocked into remembering that produce is not just like own problems, and, for the most part, consumers just can’t take on other consumables. All of our efforts are at the whim of Mother the problems of produce producers and marketers. Nature, and the best laid plans, well, as the poet Robert Burns Fluctuations in produce prices affect long-term demand in wrote, “go often askew.” important ways. When product is in surplus and prices collapse, the On the business side of the industry, bad weather poses well- low pricing serves as a kind of massive sampling program and con- known conundrums. Should a branded marketer, for example, insist sumers who had either never tried, say, avocados, now try them on an objective standard of quality — realizing that this quality may due to its bargain price. Consumers who had sampled the product simply not be available? This may keep faith before, may get in the habit of consumption with consumer expectations, but how many com- when prices are low. Restaurants and salad bar panies can afford to forfeit the shelf space and operators at both retail and foodservice often the continuing business that the brand implies? The ability of add to this dynamic as chefs and operators, Should retailers sell product at high prices quick to note that an item is both inexpensive that they know to be of low quality? Yet valued consumers to and, typically, top quality, start to feature the suppliers need outlets, do they not? And will item more generously. consumers be forgiving if one retailer has the connect high The effect of this sampling and habit-forming same product that another chooses to forego? continues long after prices rise. Conversely, And don’t retailers need those sales to utilize prices to a high prices have the opposite effect. Sampling is the square footage and shelf space so expen- reduced; habits of consumption shift away from sively outfitted for the produce department? weather problem the expensive items; menus and salad bars start What should a restaurant chain do? Sudden- to feature other items. Consumers may shift to ly change its menu? Raise prices? Swallow the six weeks earlier different selections of fresh produce, but they reduction in margin when the tomato on the may also shift to frozen or canned and, indeed, hamburger zooms in price? is questionable. reduce produce consumption entirely. Producers who are suddenly short of product The availability of imports has moderated have to decide how to allocate among cus- this whole process with both positives and neg- tomers, when to enforce force majeure clauses atives for the industry and consumers. The and what product they sell fresh, what goes to a processor and what positive point for consumers is that bad weather, by leading to high- gets plowed under. er prices, creates a vacuum that imports can often fill. So price As problematic as all this is, it is part of the business and recog- hikes are limited to what it costs to bring in product from else- nized as such. Perhaps the more interesting question is how con- where. The same dynamic, of course, moderates returns to produc- sumers react to unavailable or expensive fresh produce and to qual- ers in the area that suffered from bad weather. This creates a dilem- ity differentials caused by weather fluctuations. ma for producers, as the low prices — caused by excellent growing Some consumers, of course, react with sympathy. They read or conditions — are as low as ever, but the high prices — in the past see horrible destruction of the fields in the media and feel empathy spiked by bad weather — are now not as high as they used to be. for the farmer. They understand and accept some quality issues and The challenge for the industry is to keep consumers focused on recognize that on a small crop, only higher prices will sustain the fresh produce, despite all kinds of weather. This is difficult because farmer. This attitude may be increasing, with all the attention being it means persuading consumers to eat differently when supply paid to locally grown food and the whole concept of knowing where interruptions impact producers. Yet with the Produce for Better one’s food comes from. It all results in a greater consciousness of Health Foundation promoting fresh, frozen, canned and 100 per- the reality that food comes from the land and that there are real cent juice, there is no institution in the industry devoted to selling farmers behind each produce item. the concept of fresh to consumers. Perhaps as new crops grow in Yet, such a generous attitude can’t be relied upon. For one thing the aftermath of bad weather, an answer to the trade’s institutional — box schemes and farmer’s markets aside — few consumers deal need for such a body can rise as well. pb

8 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 9 RESEARCH PERSPECTIVE

BY MONA DOYLE, PRESIDENT, THE CONSUMER NETWORK INC. Consumers Rate Packaging

o mess” and “readiness” are two made a difference in shoppers’ lives, and 3. Their freshness dates are less than “ things that today’s shoppers need packaged salads are first among them. Mil- easy to read and considered by many shop- and expect when shopping for pro- lions of consumers regularly serve fresh salad pers to be of primary importance. duce. Once upon a time, the big at home with no more work than the flick of a 4. They go bad very quickly when closed choice in fresh produce was pair of scissors. However, now that shoppers with a clip. betweenN packaged and bulk. have taken them into their refrigerators, 5. Other “less important” produce Pre-organic produce shoppers believed hearts, and meals on a regular basis, they items, such as berries, now have terrific supermarkets sold packaged apples, potatoes grumble and gripe because the packages are packages. “So why don’t salads have and onions with the rotten ones on the bot- hard to open and harder to reclose. good packages, too?” tom and the fresh ones on top. Publix Super- In a recent Consumer Network survey 6. They are not portable. Convenience markets in Florida was the only supermarket called Packaging Report Card 2009, shoppers stores are doing a great job of selling pre- chain selling packaged produce that shoppers were asked to rate the packaging in 60 food cut vegetables and salads in on-the-go believed was uniformly perfect. Competitors and beverage product categories. Only half of packages that fit most cars’ cup holders. featuring bulk produce advertised shoppers the respondents gave good marks to “Salad, The berry packages are fabulous — easy to could choose their own fruits and vegetables bagged — refrigerated.” open and store.” from bulk displays and made building the In sharp contrast, more than 80 percent 7. There’s too much plastic in the pro- displays into an art form that sometimes gave good marks to another refrigerated duce department. “How can fresh produce reached perilous heights. product, “Milk in cartons — screw cap.” It’s be better for the planet with everything The bulk-versus-packaged war is long over, and packaging has gained ground. Today’s shoppers worry about prices, E. coli and pesticide residue, but they don’t worry about rotten apples. In fact, everyone in the supply chain deserves kudos for the trust they have earned for the quality of what today’s shoppers routinely find in their packages. The strongest example of this produce vic- tory is the difference in perception of produce and meat packages. When it comes to buying fresh meat in a package, most shoppers skep- tically expect it to be packaged “bad side down,” meaning they expect to find more fat and bone when they open the package and worth noting that shoppers hated the gable- being wrapped in plastic?” Some packages turn it over. Produce shoppers are much less topped cartons before the screw caps were for organic greens do have strong, eco- likely to expect the bottom layers of strawber- inserted, and that the improved closures were friendly selling points: “The Earth-Best ries to be moldy, or apples placed on the bot- pioneered by marketers of refrigerated juice, organic greens come in a plastic box made tom to be rotten. It’s not totally a coincidence such as Tropicana, and not by any of the from recycled bottles, which makes me feel that meat and produce have changed places in more traditional dairy companies. great about buying it.” the supermarket hierarchy, with produce, Back to salad bags: There are at least The produce industry has come a long rather than meat, now being a primary factor seven reasons they received such low scores way to making eating and/or cooking with in store choice and profit generation. on our report card. fresh produce as easy as possible. It is easy Some of the turnaround is attributed to 1. They make a mess. In the process of and delicious to have a fabulous soup meal produce packaging innovations that have being opened, they have a tendency to spill with 30-second prep time by combining a out on the counter or table, which is precisely package of fresh cut carrots, onions and cel- The Consumer Network operates a national what shoppers are trying to avoid by buying ery with a can or carton of soup. Shoppers shopper panel and conducts research and consulting projects for clients in industries them. expect more packaging that makes fresh that serve consumers. Find them online at 2. They don’t reclose, and today’s shop- produce easier to use. No mess and readi- www.consumernetwork.org pers want and expect to be able to reseal per- ness should be the guideposts for package ishable produce packages. and business development.

10 PRODUCE BUSINESS • FEBRUARY 2010 COMMENTS AND ANALYSIS

BY JIM PREVOR, EDITOR-IN-CHIEF, PRODUCE BUSINESS Voting With Dollars

uch like the conundrum of the chicken and the egg, when consu- mer concerns shift, it can be diffi- ill consumers actually pay sufficiently cult to know if consumers now worry about what they do because more to have their salad in resealable theirM concerns have simply evolved or bags? because the industry has done a good job of W addressing their concerns. If consumers no longer fear rotten produce at the bottom of the package, that may be due under its Eat Smart brand, has launched a the berries right in the clamshell, then claims to three factors: line it calls Simple Noodles — call it an Ameri- of triple-washing the greens may negate the First, there is great consciousness in pack- can version of a Mirepoix soup — which need — and thus the willingness to pay for — age design about allowing consumers to see includes a selection of fresh-cut vegetables such a package in salads. But if washing is the product from all sides. It is very difficult with some noodles and a flavoring, or sauce. encouraged, then a package that allows for to even find old-style paper bags, as they The produce is sold in a clever package that washing is a benefit. have mostly been superseded by clear bags includes a spout for draining excess water It also seems valuable to add some quan- and clamshells. and a pre-packaged fork. As Mona suggests, tification to the qualitative research. It is Second, packing is better. Whether it is without any mess, one has a nice little noodle important to know that some consumers care sturdy clamshells that provide more protec- and vegetable meal in a couple of minutes. that the plastic box is made from recycled tion to the product or carefully designed gas Of course, consumer critiques can be a plastic bottles, but whether that is a motivator permeable films and various absorbent pads challenge. For example, Mona points out that for a niche line to be sold at Whole Foods or a that help maintain quality after being pack- consumers prefer resealable bags. Of course, prod for change in mass market products aged, the packages of today are really not that is easy to do today, so it is not a techno- depends not on the sentiment but, rather, the comparable to old-style packaging. Think logical issue. The problem is that a resealable frequency with which such thoughts are about the old kraft strawberry pint containers bag costs money. Will consumers actually pay expressed and such feelings held. and contrast them with new clamshells — no sufficiently more to have their salad in a Retailers have a special need to consider wonder Mona reports consumers used to resealable bag? One has to believe that com- certain aspects of consumer research because worry about rotten fruit and no longer do so. panies such as Fresh Express and Dole have an individual product can test well, but a sea Third, much more packaging of produce is researched this matter and, so far, the answer of such products can impact consumer percep- being done outside of the store. This is sig- has come out in the negative. tions of a department or a whole store. Pro- nificant because a lot of in-store packaging This brings us to an issue with consumer duce retailers have been aware of this prob- was done as a way to reduce shrink on sub- research. It is sometimes said that the differ- lem for some time and have mostly phased standard produce. I can’t count how many ence between politics and economics is that in out products that were once common in pro- hours I spent — when I worked at retail, back politics, we learn what people want; in eco- duce — fire logs, bird seed and the like. when food safety wasn’t the issue it is today nomics, we learn what people want most. Top produce directors stopped selling these — culling moldy berries and repacking the So it is easy to get consumers to vote in a products, despite good margins and, some- good ones or cutting off bad sections of mel- focus group or survey for, say, resealable bags times, guaranteed sale offers, because they ons to overwrap them. Today’s packaged pro- or sturdy clamshells — whether they will detracted from the fresh image of the depart- duce is typically top quality; even items such actually vote with their dollars for these prod- ment. The challenge for retailers now is how as bagged apples may be a small size or a ucts is a significantly different question. to deal with a sea of plastic containers and lower grade, but the condition is typically per- The verdict may depend not only on the packaging on products much more core to the fect when packed. produce and the package, but on the market- department’s function. In many ways, Mona’s explanation of con- ing. Can consumers be persuaded that a Auto dealers typically display alluring red sumers’ critique of produce packaging is quite resealable package will reduce spoilage, and sports car convertibles to draw people in and hopeful as these issues are all being thus waste, sufficiently to get consumers to then sell practical blue sedans. We probably addressed by the industry. Dole, for example, pay more for the product? Is there a new utili- should do some in-store consumer research. recently launched a line of packaged salads in ty to a package that consumers can be Perhaps those very practical berry clamshells a bag specifically designed not to burst and shown? If clamshells with berries get a boost would sell better surrounded by a display of make a mess when being opened. Apio, because consumers like being able to wash bulk strawberries.

FEBRUARY 2010 • PRODUCE BUSINESS 11 PRODUCE WATCH TRANSITIONS DOLE FOOD COMPANY INC. WESTLAKE VILLAGE, CA COLORFUL HARVEST Tim Waters was promoted to the newly created SALINAS, CA position of district sales manager, based in Casey Mills was hired as business development Minneapolis, MN. He will be responsible for selling manager. He brings experience in solid farming, Dole banana category products in the upper quality control and crop sales. He previously Midwest, as well as building and coordinating worked for Mills Family Farms and TriCord Dole’s national and regional business. He began Tradeshow Services in Palm Desert, CA. He gradu- working for Dole in 2001 as a marketing represen- ated from Cal Poly, San Luis Obispo with a tative. Bachelor's degree in Ag Systems Management.

Dan Boyes was promoted to district sales manager Gina Diaz was hired as accounting manager. She for the central division in the Erlanger, KY-based brings 15 years of experience in the produce divisional office. He will be responsible for selling industry. She previously worked with Misionero Dole banana category products in East Texas, Vegetables. Most recently, she worked for D'Arrigo Arkansas, Louisiana and Mississippi. He began Bros. as operations accounting manager. She grad- working for Dole in 2007 as an assistant district uated from the University of Phoenix with a sales manager for the Western Division. Bachelor's degree in Accounting.

Jaci Spicer was promoted to assistant district sales Jose Rossignoli was hired as director of sales and manager for the central division. She will work in sourcing strategies. He previously worked for the Erlanger, KY-based divisional office to support Brooks Tropicals LLC, as vice president of sales Dole sales efforts within the banana category. She and marketing, where he was involved in manag- began working for Dole in 2006 as an assistant ing sales, marketing and distribution programs. He product distribution manager for the central divi- graduated from the University of Florida with a sion. Masters of Agribusiness degree.

ANNOUNCEMENTS FRONTERA EXPECTS RECORD SUBSOLE AWARDED TESCO'S VOLUME OF PINEAPPLES BEST SUPPLIER AWARD Frontera Produce, Ltd., Edinburg, TX, plans Subsole, Santiago, Chile, received Tesco's Best to pack a record number of cases of its Supplier in the Southern Hemisphere Award at MD2 Golden variety pineapples from the British retail chain’s Produce Grower and Mexico to market from January through Supplier Awards 2009, held during its annual July 2010. During this time, Frontera will gala dinner in London. Subsole was chosen for rank as one of the largest importers of the international grower and supplier category. Mexican-grown Golden pineapples into the Pictured from left are Miguel Allamand, presi- United States, increasing its production dent of Subsole, and Tim Lee, produce manager nearly 40 percent for the 2010 season. for Tesco. Reader Service No. 300 Reader Service No. 301

SUNKIST,FRESH MARKET CREATES VILLAGE FARMS COMPLETES ‘WORLD’S LARGEST’ORANGE DISPLAY CONSERVATION,PRESERVATION Sunkist Growers Inc., Sherman Oaks, CA, PROGRAMS and Fresh Market, a new division of Village Farms, Eatontown, NJ, completed Associated Food Stores, Salt Lake City, UT, land preservation and water conservation kicked off the holiday season by building programs at its greenhouse facilities in the world's largest navel orange display at Marfa and Fort Davis, TX. The programs its store in Centerville, UT. More than were designed to reuse agricultural hydro- 322,000 fresh Sunkist navels — 164,00 ponic greenhouse production waste water pounds — were used to build the display, to create irrigation water for a vast area of which was enjoyed by consumers at a spe- ranchland where grasslands can flourish cial viewing party hosted by the store. Reader Service No. 302 and cattle can graze year-round. Reader Service No. 303

SUNNYRIDGE FARMS OPENS SUNFLOWER FARMERS TO NEW DISTRIBUTION FACILITY SHIP HOME-GROWN PRODUCE SunnyRidge Farm, Winter Haven, FL, host- Sunflower Farmers Market, a Boulder, CO- ed a grand opening and ribbon cutting to based chain of 27 full-service grocery celebrate the opening of its new distribu- stores offers consumers high-quality nat- tion facility in Plant City, FL. The event ural and organic products at low prices. In drew more than 100 people. The facility, 2008, the chain started a backyard farm to which features more than 51,000 square augment the produce stock in its 27 feet of packing and distribution space, will stores. Growing its own food allows the nearly triple SunnyRidge's capacity. retailer to control quality and lower costs to keep prices down and consumers Reader Service No. 304 happy. Reader Service No. 305

Produce Watch is a regular feature of Produce Business. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a color photo, slide or transparency to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]

12 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 20 FOOD SAFETY: Offense or Defense?

As we mature as an industry in the food safety arena, how are we balancing defensive and offensive strategies?

BY JODEAN ROBBINS

fter suffering multiple hits in recent years, the produce indus- day,” states Robert Stovicek, Ph.D., president/chairman of Santa Maria, CA- try is more food safety conscious than ever and has taken based PrimusLabs.com. “It is much harder to recognize the individual who great strides to improve approaches to food safety. “There has prevents a crisis. Firms applying food safety offensive strategies are like those been an unprecedented effort in the last three years to building brands over the long haul. They shape others’ expectations by their enhance produce food safety,” says Drew McDonald, vice actions one day at a time. Not as glamorous, but very rewarding for those presidentA of national quality systems for Taylor Fresh Foods Inc., based in with the stamina, discipline and commitment to follow through day-in and Salinas, CA. “The effort has included food safety experts and stakeholders day-out.” from the industry, academia and government. The results of the effort have Taking an offensive approach is no simple task. “Fresh produce has two produced sharing of Best Practices and development of comprehensive food challenges facing it, even under the best of conditions,” explains David safety programs such as the commodity-specific guidelines for leafy greens, Gombas, Ph.D., senior vice president of Food Safety and Technology at Unit- melons and tomatoes.” ed Fresh Produce Association, located in Washington, D.C. “First, the vast “The produce industry has become much more proactive than in the majority of produce is grown outdoors, where it is exposed for the entire past,” agrees Bill Pool, food safety specialist for Wegman’s Food Markets Inc., growing season to a variety of potential pathogen carriers and continues to headquartered in Rochester, NY, with 75 stores. “The Center for Produce be vulnerable to contamination right up to and including handling by the Safety, based at UC-Davis, and the Sacramento, CA-based California Leafy consumer. Second, once contaminated, fresh produce is very difficult to Greens Handler Marketing Agreement (LGMA) are both wonderful exam- decontaminate. So everyone in the fresh produce supply chain has to do ples of the industry stepping up and actively addressing issues affecting pro- what they can to prevent contamination from occurring while they have duce safety.” control of the produce.” In this new era, the question now turns to whether companies are playing Although a vast majority of the industry is well trained in food safety offense or defense in the food safety game. “Broadly speaking, everyone in the issues, not everyone is at the same level. “Some companies have really industry, whether they’re in Honduras, Mexico, Chile, California or Maine, grasped the concept of food safety responsibility,” acknowledges Bob Whitak- realizes food safety is a critical issue,” says Tim York, president of Markon er, Ph.D., chief science officer for the Produce Marketing Association (PMA), Cooperative Inc., in Salinas, CA. “However, practices and the application of based in Newark, DE. “These companies have done risk assessment and are them — in terms of how farming or transportation is handled — can be dif- engaging product testing and auditors where it makes sense. However, there ferent along the way. Certainly, there are parts of the industry taking it very is a minority in our industry — those who are not taking ownership for food seriously and making major progress. Food safety was something that a lot of safety programs — and instead, they’re following programs prescribed by oth- people thought about prior to September of 2006 — now there are many ers that they’re trying to fit to their operation. They haven’t taken ownership more doing something about it.” for doing their own risk assessment and are going through requirements “Regardless how logical or practical preventative medicine might be, in without really understanding why they’re doing it. Then, there is a small our culture, it takes a back seat to the specialist who comes in and saves the minority who haven’t even gotten started on implementing a comprehensive

14 PRODUCE BUSINESS • FEBRUARY 2010 800-223-8080 • 718-991-5900 www.darrigony.com

Reader Service # 34 program, and we, as an industry, need to help mitted to the importance of food safety, that will them get started.” “Firms applying food safety carry down through the organization and your “The large number of successful brokers and food safety efforts will suffer. Fortunately, our top wholesalers pay tribute to the size and complexity offensive strategies are like people are very involved in food safety activities of the fresh produce industry,” states Matthew and very supportive. In addition, you need founda- Regusci, chief operating officer of Azzule, an inter- those building brands over the tion programs enhancing food safety activities national, web-based supply chain compliance data such as HACCP, GAPs and other pre-requisite management group with locations in Culiacan, long haul. They shape others’ programs. You need to train folks and help them Sinaloa, Mexico and Santa Maria, CA. “Over the understand why certain things are so important, past ten years, certain commodity groups, certain expectations by their actions and they need to be supported with the right regions and certain companies have made amazing equipment and materials.” progress. However, a completely opposite statement one day at a time.” A true food safety program must be incorpo- could be made about others.” rated throughout the business. “Food Safety needs to be a core component of the business strategy,” CHAMPION A FOOD — Robert Stovicek, Ph.D. states Taylor Fresh’s McDonald. “It is not some- SAFETY CULTURE PrimusLabs.com thing to be marketed; it is a given. An understand- Just like a championship sports team, success ing of the regulation surrounding food products in food safety must consist of teamwork and lead- “Companies need to build a strong food safety should be emphasized when designing a new pro- ership from above. “The first thing a company has team whose initiatives are understood and sup- cessing plant, selecting a grower/supplier and to recognize is how the safety of the product is ported by management,” adds Dionysios Christou, developing product lines. A well-run company has their responsibility,” explains Whitaker. “This has vice president of North American marketing for quality and food safety as core tenants of its busi- been a stumbling block for many industries over Del Monte Fresh Produce North America Inc., ness model. If it’s not part of the culture, cus- the years. Once you accept the responsibility, then headquartered in Coral Gables, FL. “At Del tomers will not want your product.” you can begin to make it a part of the corporate Monte, we have both corporate and operating unit “We’re seeing a change in the general outlook fiber of your company.” teams focused on the safety of our products, and it on food safety,” reports Scott Horsfall, CEO of the “If food safety is going to be of value for a com- is a company-wide priority to deliver only the California Leafy Green Products Handler Market- pany, it is going to be part of their business culture safest, premium quality produce.” ing Agreement (LGMA) in Sacramento, CA. much like other values we have,” remarks Markon’s Time and commitment are required for suc- “This is especially true in our industry because York. “It has to start at the very top. The people cess. “Changing corporate culture doesn’t happen we’ve been in the eye of the storm.” have to know it’s important to the CEO. If the overnight,” adds David Corsi, vice president of pro- “The commitment to food safety must be led CEO doesn’t demonstrate its significance through duce and floral merchandising for Wegman’s. “It by the management team, but be an integral part his or her actions and decision-making, it’s not takes time and commitment, and commitment has of the organization to assure enforcement of stan- going to matter to the rest of the company.” to start at the top. If senior management isn’t com- dard operating procedures (SOPs) that deliver a 68 3 # 30 # # Reader Service Reader Service Reader Service

16 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 83 safe food supply,” adds Bryant Ambelang, vice It means something to them and makes it person- one issue, but proving you’re doing it is another. president of sales and marketing for Desert Glory al. It puts a face to food safety.” “Record-keeping is a critical aspect of any food Ltd, in San Antonio, TX. “The written SOPs must Effective training must be realistic and consis- safety program,” states York. “For example, in the all link into the delivery of a safe product with no tent. “Effective training is every bit as important as Leafy Greens Marketing Agreement, those who tolerance for infractions.” having the right food safety plan,” says United’s have been de-certified were hit mainly for paper Gombas. “I’ve seen too many operations that think violations. There is also the traceability aspect of MAKE IT PERSONAL having a good food safety plan is the end of the record-keeping in having quick access to the infor- Risk management and specific identification process. Instead, a food safety plan has to be built mation when you need it.” of the parameters and tools fitting a specific busi- into the company’s operational culture, and that “Our program is documentation and record- ness are crucial components to successful food requires training. Training is only effective if it’s keeping-intense,” adds Horsfall. “The requirement safety. “Food safety is personal,” says PMA’s well designed for the target audience and relevant is for everybody to keep the records for everything Whitaker. “Each company must assess their indi- to the audience being trained — a harvest crew we check for at least two years. We check all the vidual risks and put together a program specific doesn’t need a course in microbiology; they need documentation every time we do an audit. A lot of to its risks and needs.” training in sanitary hygiene practices and handling the companies have moved to keeping records in “Not all food safety tools are right for all opera- of their utensils, containers and the produce itself.” an online environment to ensure against loss or tions,” agrees United Fresh’s Gombas. “Every oper- “Training can look good on paper, but it also other problems.” ation has to pick those best fitting their operation needs to be thorough and good in reality,” points The quality and accessibility of records could and inherent food safety risks. Picking the wrong out Christou of Del Monte. “In order to ensure make or break a company. “Good records can ones can mean wasting precious food safety effectiveness, training needs to be frequently tested make the difference between a company being resources without actually improving food safety.” and improved. Special attention should be paid to implicated or cleared from a contamination event,” “The Leafy Greens Agreement and Sysco’s the training on CCP technicians and the sanita- explains United’s Gombas. “The most important requirement of GAP from all our ready-to-eat sup- tion group.” aspect of records is for them to be accurate, all the pliers are examples of risk management,” says Rich time. In an investigation, if there is any indication Dachman, vice president of produce for Sysco that some records are missing or incorrect, the Corp., based in Houston, TX. “Risk management “Good records can make the assumption will automatically be that they could is preventative maintenance. There aren’t any all be incorrect.” guarantees in our business so all we can do is difference between a company “The important issue is to make sure records reduce risk.” are complete,” says PMA’s Whitaker. “There should Once an effective plan is in place, all levels being implicated or cleared be a system of checks and balances in place so of the company must understand and embrace someone has the responsibility for going through it. “There has to be a food safety champion at from a contamination event.” those records, making sure things were done as the operational level,” says Gombas, “someone they should be and looking for anything that whose responsibility is to make sure the opera- needs to be addressed. If there is an issue, make tion has a food safety plan addressing the risks — David Gombas, Ph.D sure a corrective action is put in place. Make sure reasonably likely to occur and in a practical and United Fresh you hang onto those records and that they’re verifiable manner. This same person should Produce Association stored properly. You may even want to store them monitor the day-to-day operation to ensure the in multiple sites or an off-site record location.” plan is being followed. Every worker’s job respon- Food safety leaders put great emphasis on their Although recordkeeping may be a weak link sibility training should include enough food safe- training. “We also look at training our inspectors,” for some, solutions exist to help all levels of com- ty that they understand how their actions, or says Markon’s York. “We have long had field inspec- panies maintain proper records. “Farmers hate failure to take action, can affect the safety of the tors looking at quality and field inspections, but paperwork, so this is the place where farmers miss produce they handle.” their role has expanded. They’re another set of the most questions on the audit,” reports Stovecik. Being able to measure food safety performance eyes for a food safety check, and training them and “Many are learning the importance of logs. We tell is equally as important as assessment and manage- keeping them up-to-date is critical.” them if it is not written down, it did not happen.” ment. “If we are not measuring, then we cannot “We invested in CBT (Computer Based Train- Gombas relates, “A common complaint I’ve be managing,” points out Regusci of Azzule. “If we ing) with every person who works in our stores,” heard is, ‘I’m a small grower and we only have a have not established various measures of perfor- says Pool. “Before a store employee starts at Weg- few employees’ or ‘If I have to fill out dozens of mance in our food safety efforts, if we are not man’s, they go through this training. Anyone in a records every day, I won’t get the work done and recording these measures, if we are not linking food preparation environment goes through more I’ll be out of business.’ Recordkeeping practices performance reviews to these measures, then we extensive training.” must be right for the operation. Some operations are sending a hollow message to our staff regarding “Training is an important area we’re moving need to complete dozens of records every day, oth- our commitment to safe production and handling.” into now with our own industry,” says LGMA’s ers only need a few records.” Horsfall. “One of our new Technical Director’s BACK UP YOUR PROGRAM tasks is to create outreach to our industry to train RECOGNIZE BUYER STEPS A successful offense is only as good at the and educate people.” While long required to keep their own separate training of the players. “Training and education Even the best food safety technology is at the health programs, buyers are increasingly involving are critical components of an effective food safety mercy of the human element. “Our industry still themselves with produce-specific initiatives. “We’ve program,” says Wegman’s Pool. “People need to relies on people, even as technology advances,” had criticism from the shipping community that know how the things they do, or don’t do, make a says Taylor’s McDonald. “Making sure everyone all the food safety expectations are being put on big difference. Training has to be basic and repeti- knows their role will make or break a program.” the grower/shippers,” says Markon’s York. “To some tive, and people need to demonstrate they under- “Training and retraining are critical,” agrees degree, they’re right and to some degree, much of stand the subject or issue being addressed.” Primuslabs’ Stovicek. “Success in food safety is not the focus needs to be on them. However, there is a “You don’t just train, you explain,” suggests defined by an average or even an above average role we, as buyers, have to play and we need to PMA’s Whitaker. “You have to make training per- performance. It is defined by preventing the ‘Black acknowledge it and take it seriously, in both our sonal. If you talk to employees about why they Swan’ event, or the single negative event, that transportation and handling component. If we do need to do what they’re doing, it will stick with defines you and your firm in a way no one wants.” everything right along the way and the foodservice them better. Ask them about a favorite aunt, operator or consumer cross-contaminates, we still uncle, grandmother or child and then relate what PROOF IN THE PAPER TRAIL have a problem.” they’re doing to protecting that particular person. Implementing a good food safety program is United’s Gombas shares, “One complaint I’ve

18 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 19 heard is ‘If I’m doing all this to keep the produce as the chair for the FMI Food Safety Taskforce. equivalency in food safety programs. It’s a hard from getting contaminated, then what’s my cus- Like we’ve said, the commitment to food safety change because of the complexity of the supply tomer doing to keep it safe?’ Except for starts at the top.” chain, but more and more buyers are moving in growers/shippers, much of the rest of the U.S. fresh this direction.” produce supply chain already operates under PUSH FOR AUDIT EQUIVALENCY “As an industry, the harmonization of audits is mandatory state or federal regulations.” The buying community has taken measurable key,” agrees Dachman. “At Sycso we have identi- As food safety emphasis in the produce indus- steps to ensure suppliers have food safety programs, fied a list of products we consider to be high risk try grows, so are additional programs undertaken but not without difficulty in implementation. and we require the supplier to meet GAPs with an by buyers. “A lot of people in the buying commu- “Most of the buying community is very actively acceptable third party audit, allowing them to nity also have food safety programs they’re enact- involved in monitoring the food safety steps being choose from our list of approved audit companies. ing within their own facilities,” reports Whitaker. taken by their suppliers,” explains LGMA’s Hors- We allow them to download their information “They have equipment sanitation programs and fall. “But, right now there is a huge variety of from any one of those approved audits to show us worker training they’re using to ensure produce is audits being required — most of them looking at they’re meeting the requirements. It’s critical to safe at their particular venues. They’re investing in the same thing. The buying community can help come to some standard audit requirements and the food safety equation and it’s important for us look at these issues and reduce the number of we’re working on that as an industry.” people to understand. Everybody is working hard duplicative audits. This will squeeze costs out of Wegman’s is known as a great example of a to ensure they’re managing the food safety ques- the system as well. We’re all working collectively to pro-active retailer in their work with and require- tion as best as possible.” address those issues and reduce that burden on ments from suppliers. “Wegman’s requires GAP for “There is a big role we buyers can play in train- the grower community.” their large national suppliers, but then they take ing,” explains York. “At Markon, we have developed “One of our greatest challenges today is the on the responsibility to work with local growers to programs to demonstrate food safety practices for lack of a consistent and agreed-upon standard for set up training and education programs,” explains our customers.” food safety audits,” agrees Taylor Fresh’s McDonald. Whitaker. “They are requiring them to use the “Wegman’s does extensive employee training “Today, the produce industry faces multiple, USDA national GAP, but helping them under- and that takes time and costs money,” reports redundant audits, which in most cases are not stand how to do it.” Corsi. “Everyone who works in our stores is food interchangeably acceptable to different buyers. “At Wegman’s, we’ve taken the position that safety trained, and depending on where you work Most buyers will only accept the results and certifi- anyone supplying certain commodities to our and what you do, some people receive much more cation of certain certification bodies, thus leading stores or distribution centers must demonstrate training. At the corporate level, we have many to a proliferation of different audits for different they have food safety programs in place, or we people working on food safety issues, for both pro- buyers.” can’t do business with them,” reports Corsi. “In duce and other products. We spend a fair amount A move toward equivalency in audits will ben- most cases, this is taken care of with a third party of time working at the national level with the efit buyers and suppliers alike. “As buyers can GAP or food safety audit. Specifically, this require- trade organizations representing the retail and pro- become more consistent among each other in ment applies to lettuce and leafy greens, tomatoes, duce sectors. We serve on committees at FMI, their requirements, it will benefit food safety,” netted melons such as cantaloupe, herbs and green PMA, United and the Center for Produce Safety, maintains PMA’s Whitaker. “We’re seeing a change onions. It applies regardless of the size of the grow- to name a few. Specifically, Danny Wegman serves and a shift in this as we look for ways to obtain er/supplier. Large, national suppliers are well

ARE YOU PREPARED FOR CRISIS? risis management is something many isn’t just for food safety issues. There are a num- With specific respect to food safety, it’s companies don’t think about until ber of different crises companies can face, such important to have a plan worked out to know Cthey’re in the middle of a crisis, and then as labor issues, fires, etc. It is important to have who will play what role. “The components of a it’s too late. “The best example of many compa- a plan mapped out so you don’t have to make it plan are unique for every company and prod- nies dealing offensively with food safety is the up as you go along when you’re facing so many uct, but the core components should include preparation of crisis management programs,” issues hitting you at once.” information processing and communication says Tim York, president of Markon Cooperative Everyone hopes they’ll never need a crisis expectations,” states Drew McDonald, vice Inc., in Salinas, CA. “This is a sign people in the plan, but one can mean the difference president of national quality systems for Taylor industry are dealing pro-actively and not just sit- between life and death for a company. David Fresh Foods Inc., based in Salinas, CA “In this ting back and waiting for another crisis.” Gombas, Ph.D., senior vice president of food day and age with the speed of information, a “The time to plan how to handle a crisis is safety and technology at United Fresh Pro- crisis can happen very quickly and information not when the crisis is happening,” agrees Dave duce Association in Washington, D.C. can come in many different forms. Making sure Corsi, vice president of produce and floral mer- explains, “It’s important for produce compa- one’s program is designed to handle and chandising for Wegman’s Food Markets, a 75- nies to know they don’t have to do anything process the information inputs is critical.” store chain based in Rochester, NY. “We have a wrong to get caught up in a recall. Every com- “Some considerations include having the crisis management team at Wegman’s consist- pany I have helped work through a crisis has names and contact information for key per- ing of people from different parts of the compa- been shocked to discover they were implicat- sonnel you’d need to contact in the event of a ny, and their responsibilities are well defined ed in an outbreak or their product was adul- crisis,” advises Whitaker. “A good call list and understood. We assembled this team to terated and they had to recall. An operation should comprise state and federal regulatory understand everyone’s roles, what steps are prepared for a crisis can get through it quickly people, key customers and employees and necessary when a crisis hits, and all of us are and efficiently, which can reassure both pub- local- and state-level health department con- working in unison with communication to our lic health agencies and customers that the tacts. Secondly, you need to already have store personnel and our customers.” operation knows what it’s doing. If an opera- identified a team of people both inside and “Every company should have a crisis man- tion is not prepared, the crisis can drag on for outside your company to manage the crisis, agement program,” asserts Bob Whitaker, Ph.D., days or weeks, end up as a media headline, along with a crisis management leader. It’s chief science officer for the Produce Marketing lose customers and increase the company’s often better for the leader to be different from Association, (PMA) in Newark, DE. “And this vulnerability to a lawsuit.” the company president so he/she can be man-

20 PRODUCE BUSINESS • FEBRUARY 2010 equipped to deal with food safety issues, but we industry experts, university scientists and regulato- “We need to keep pushing for improved sci- had concerns about smaller, local growers.” ry agencies, and based on the available science at ence to develop enhanced standards,” adds Wegman’s Pool continues, “We have a well the time. We borrowed the most applicable sci- McDonald. “By funding research with practical established network of local growers that we deal ence, but we’ll know more as we have our own applications we can more quickly get to food safety with in our market areas, and these folks deliver specific research done. The exciting thing is that a solutions with meaningful impact.” their products directly to our stores. We started lot of very smart people are focusing on how these Focusing on practical and useful parameters for working with Cornell University in 2004 to devel- pathogens get into our crops and how we can research requires close industry collaboration. op a GAP education program specifically aimed at lower the risks. As the science becomes available, “Industry and research groups should work togeth- small growers, and we did the first training sessions it will help us really tighten up and know what we er with government and food companies in order in 2005. We’ve done them every winter since and need to do down the road.” to make food safety programs more effective now include Rutgers University, the Department through scientific studies,” advises Del Monte’s of Agriculture and Markets in New York and New Christou. “Industry associations are working with Jersey, the USDA GAP program, Penn State and “One of our greatest suppliers to come up with new metrics to give to others. There is no charge to the growers other the FDA as industry recommended guidelines, than their time and we provide training materials, challenges today is the lack of such as the tomato metrics.” breakfast and lunch and this year, we did a one- “Our level of understanding of the actual ‘risk’ time reimbursement to growers who got their a consistent and agreed-upon associated with various agricultural practices is an USDA GAP certification to help them offset the ideal field for multi-disciplinary researcher teams,” cost of the audit. We have some local growers who standard for food safety suggests Azzule’s Regusci. “Our needs in this area did not get GAP-certified and we are not going to are so great that there is really no need to focus on be able to do business with them next season until audits. Today, the produce theoretical hazards that are adequately addressed they are able to provide us a copy of their GAP from the body of existing information.” certificate.” industry faces multiple, The Davis, CA-based Center for Produce Safety (CPS) is perhaps the industry’s forerunner redundant audits, which in applicable research, which was started with MOVE FORWARD generous donations from Taylor Farms and PMA, WITH RESEARCH in most cases, are not and additional funding from the California A winning playbook must be based on actual Department of Food and Agriculture. Wegman’s statistics and real-world information. Unfortunate- interchangeably acceptable Pool says, “The CPS is funding research aimed ly for the produce industry, there have been a lot directly at better understanding things such as of scientific holes in putting together food safety to different buyers.” the role irrigation water plays in potential conta- strategies. “The leafy greens industry is doing mination of produce; how E. col i survives in soil everything we know to do today, but we still need and water; and how to reduce Salmonella conta- more science-based information,” explains Hors- — Drew McDonald mination of tomatoes. All the research projects fall. “The metrics we use were put together by Taylor Fresh Foods Inc. are being funded by the produce industry to help

aging behind the scenes while the president is Whitaker. “You also want to be prepared at Desert Glory Ltd, in San Antonio, TX, has a serving as spokesperson. Identify everyone the Web site level and to have a mechanism crisis management program that provides a who can add value to that team — someone in place where you can post information and road map and resources in case of an emer- from the production side, someone who activate it immediately.” gency. “It is important that a crisis plan be understands the customer side, maybe a legal As with most things, practice makes per- more dynamic than a binder or an intranet site representative. Make sure everyone under- fect. “Have a mock recall event at least once a available to employees who might or might stands your business before there is a crisis.” year,” suggests Whitaker. “Get people together not have seen the plan when it is needed,” Gombas adds, “Every operation, regardless so if a crisis does occur, everyone knows how states Bryant Ambelang, Desert Glory’s vice of size, should have a recall team including, at to work together as a team. You want to make president of sales and marketing. “Desert a minimum, a person who will be in charge sure you’re protecting the public health and Glory engages on a regular basis in mock during the crisis, a person who will know the minimizing the damage to your company.” recalls that allow us to be operationally cer- details of the operation and the affected prod- “Mock recalls should be done to truly test tain that our recall procedures work. Trace- uct — where it came from, how it was han- the system. After-hours contacts, trace-forward ability at Desert Glory has been a discipline dled and where it went — a person that and trace-back scenarios should all be consid- we’ve employed for more than 10 years.” understands the company’s legal rights and ered,” says McDonald. “It should also include “Markon has a thorough crisis manage- obligations and a person who will be in a learning mechanism. When deficiencies are ment program in place,” says York. “Our charge of communications — with the public found, then the system has to be designed to program has 36 different steps, dealing with health agency, with customers, with the media be modified and improved.” everything from convening a crisis manage- and with employees. These people don’t all “The recall team has to practice the plan ment team, to getting our PR folks in place, have to be full-time employees of the compa- periodically just like a fire drill,” remarks Unit- to assessing what’s going on in the media, ny (except the person in charge), but the oper- ed’s Gombas. “The importance of being trained looking at the extent of the problem and ation has to be able to bring these people and prepared for a crisis is why United Fresh identifying what we can do. It also includes together at a moment’s notice.” developed the course Training for a Recall, looking at what audiences we need to reach Another important step is to prepare some Communicating Under Fire, which provides out to, looking at what state or federal agen- templates of communication documents in crisis training specifically designed for fresh cies we need to be involved in, communi- advance. “You don’t want to be in the posi- produce companies. But regardless of whose cations with industry associations and sup- tion of writing everything from scratch while training they take, every company should have pliers and bringing in third-party experts you’re in the middle of a crisis,” advises a team that is trained and prepared.” where necessary.” pb

FEBRUARY 2010 • PRODUCE BUSINESS 21 enhance the safety of produce.” CPS believes it can help the produce industry in four ways. Bonnie Fernandez-Fenaroli, CPS’ FOOD SAFETY FROM A GLOBAL PERSPECTIVE executive director, explains, “By identifying and An interview with Nigel Garbutt, Independent Chairman of prioritizing research needs, creating partnerships to GlobalGAP in Cologne, Germany. get the research done, reaching out to all industry stakeholders regardless of their experience with Q: Is the U.S. produce industry moving the necessary control, as well as make it food safety problems or research needs, and facili- forward fast enough on food safety issues? impossible to accommodate all crops and sit- tating an open dialogue between researchers and A: From GlobalGAP’s perspective, we rec- uations. Rather, a standard should provide business, we can provide practical and real-world ognize the U.S. produce industry has acceler- guidelines, tools and key control points that help to the industry.” ated its response to food safety outbreaks over can be implemented as Good Agricultural the past 12 months. This has to be welcomed Practices. Most GAPs make sense to growers. [by the industry] and the efforts such as those “Wegman’s does extensive being undertaken by United Fresh — to estab- Q: What are the new or upcoming issues lish greater awareness of effective Good Agri- in food safety that we should be prepared employee training and that cultural Practices and their certification on for? farms — will be crucial to achieving fewer A: GlobalGAP is evaluating these takes time and costs money. incidents in the future. emerging microbiological food safety issues to see what lessons can be learned for its Everyone who works in our Q: Are we ahead of, behind, or at the new standard version, which has been same level as other developed countries in under consultation this fall. These issues stores is food safety trained, the world? were discussed during our outreach pro- A: Historically, food safety in the United gram to five continents where 500 experts and depending on where you States was considered to be within the from 50 countries participated in round- domain of the regulators seemingly requiring table discussions on the subject. work and what you do, a less proactive approach by the industry. In As an industry, we need to keep the eye parts of Europe, regulators have enforced a on the ball as food safety has many facets. some people receive much “due diligence” approach, where all food Fundamentally, it is about having an inclusive chain operators are required to establish their overview of issues such as water availability more training.” own systems of control. To prevent the prolif- and quality, pesticide usage and even how eration of industry standards, schemes and workers are treated. These factors are interde- audits, GlobalGAP has brought the industry pendent, and when properly considered, ulti- — Dave Corsi together on a global level to harmonize efforts mately lead to safe and sustainable products Wegman’s Food Markets Inc. to develop a more effective and efficient in which consumers can have confidence. response. We are working with United Fresh toward the goal of a single agreed standard Q: How can the produce industry have a The Center for Produce Safety has funded 24 and audit for the United States. truly global perspective on food safety? research projects throughout the past 14 months A: The produce industry has become glob- by bringing together private and public partners. Q: What are some major lessons/tips the alized and food safety scares don’t respect To date, the shared investment in research U.S. industry could learn from other coun- geographical or political boundaries. The amounts to more than $3.7 million. To better iden- tries on food safety? challenge in the United States is to realize tify and prioritize research needs, the CPS Techni- A: Encourage producers to think about that this is not a competitive issue, but affects cal Committee and experts convened through the their own farm/ranch and to identify what the us all. We should also help get information CPS Partners in Research program have jointly potential risks are and work to eliminate and support out to the smaller and local pro- identified research priorities for the RFPs. “A col- them. We should not try to tell growers how ducers who maybe don’t have the established laboration of industry, academic and government to grow crops or be over prescriptive. This network of larger organizations. “Think global talent thereby provided targeted projects that are one-size-fits-all approach will fail to deliver but act local!” really works in this context. specific to answering agreed upon research ques- tions,” explains Fernandez-Fenaroli. “Early CPS grants funded research projects focused on the utive director of the PFSE in Washington, D.C., will continue to convene a BFS Retailer Advisory introduction and identification of pathogens at states, “Both the Produce Marketing Association Group that meets every four to five weeks on con- the field level. Later projects addressed questions and United Fresh are active members of PFSE. ference call to discuss safe food handling topics related to wildlife and processing practices. PMA has further been a contributor to the PFSE and to provide guidance on approaches, formats Research is needed to answer questions across the effort to develop six steps to safer fresh fruits and and timing of consumer outreach efforts.” pb field-to-fork chain.” vegetables, as well as our exciting current project, To facilitate dialogue, the CPS will hold its the new consumer site at holidayfoodsafety.org.” First Annual Research Symposium, in June, 2010. “There are now at least 60 companies in the “The symposium objectives include creating a Be Food Safe (BFS) network,” reports Feist. forum for scientists to present the results of new “Licensed retailers will continue to have access to food safety research funded by CPS and its part- a protected download area at befoodsafe.org where ners,” says Fernandez-Fenaroli. “It will also facili- they can obtain graphics, flyers and brochures, tate open dialogue among scientists, produce scripts, press release templates and other informa- industry stakeholders and regulators regarding the tion to help them include food safety education in For more information on practical implications and applications of the their programming with customers.” research for specific operations.” PFSE expects to engage retailers in an educa- Food Safety go to The produce industry, especially food retailers, tional effort around Recall Basics, which is www.producebusiness.com have also been pro-actively supporting food safety designed to help orient consumers to things they education though the non-profit Partnership for should know about recalls and what to look for in Food Safety Education (PFSE). Shelley Feist, exec- products they have in their homes. Feist says, “We

22 PRODUCE BUSINESS • FEBRUARY 2010 Tricks Of The Trade For Successful Spring Merchandising Focus on holiday promotions to get consumers thinking about fresh produce in the Spring.

BY CAROL BAREUTHER

Springtime, especially the early spring, is a kind zation “will offer free downloadable Fruits & Veggies — More Mat- of twilight zone when Southern hemisphere pro- ters materials such as point-of-sale tool kits. Elements of the tool kit duction is wrapping up and domestic harvests will focus on tips to get kids to eat more fruits and vegetables, over- are just starting. This can make promotional all healthful eating, weight loss tips and ways to include fruits and planning around specific items difficult. vegetables while remaining within a family budget.” The best game plan, according to Jeff Fairchild, director of pro- duce for New Seasons Market, a 9-store chain based in Portland, OR, “is to bring that season from winter to spring by focusing on MARCH MADNESS: the holidays and promoting what’s available around those themes.” Month of March March Madness is the moniker given to the National Collegiate Athletic Association (NCAA) Men’s and Women’s Basketball Tour- NATIONAL NUTRITION MONTH: naments, a series of playoff events that start the first week in March 1 to 31 March and culminate with the naming of the year’s national col- This annual monthly designation, started by the Chicago, IL- lege basketball champions by the end of end of month. based American Dietetic Association in 1973, highlights the impor- Robert Schueller, director of public relations for Melissa’s/World tance of making informed food choices and developing sound eat- Variety Produce Inc., in Los Angeles, CA, says, “Just like merchan- ing and physical activity habits. The Wilmington, DE-based Pro- dising around the Super Bowl, this is a time to promote snack foods duce for Better Health Foundation (PBH) offers retailers a variety such as guacamole and salsa. Increase the size of avocado and of materials to promote fruits and vegetables in celebration of tomato displays and cross-merchandise these items. People are eat- National Nutrition Month. ing better these days, so be sure to offer items such as carrots, cel- Kristen Stevens, PBH’s senior vice president, reports the organi- ery and jicama for dipping, in addition to chips. Of course, mer- chandising always steps up a notch when a hometown team is in the playoffs. This is an occasion to dress up the department with the team colors.”

ST. PATRICK’S DAY: March 17 Promote anything green, recommends Schueller. “This includes fresh herbs, sugar snap peas, leeks, green kohlrabi, leafy greens, squash and cabbage,” he details. Cabbage is a staple promotional item for this holiday’s tradition- al dish of Corned Beef and Cabbage. Maureen Torrey Marshall, vice president of Torrey Farms Inc., located in Elba, NY, says, “We see significant movement in cabbage in cities with large Irish popula- tions, such as Chicago and in the Northeast. Retailers will often

Photo courtesy of Ocean Mist Farms make cabbage a loss leader and advertise it for anywhere from 5- Growers are expecting a larger then cents to 19-cents per pound.” The company offers high-graphic bins average artichoke crop this season. to merchandise cabbage during peak sales periods. Torrey Marshall

FEBRUARY 2010 • PRODUCE BUSINESS 23 adds, “Many produce departments will traditional ingredients that are both symbol- ing on the jumbo to large sizes in March. cross-merchandise corned beef with cab- ic and edible such as beets, parsnips, variety May is the peak for the foodie favorite size: bage as well as carrots, potatoes and potatoes, onions and fresh herbs.” the baby artichoke. This year will be one of onions.” our largest in terms of volume. There will be plenty of promotional opportunity.” EASTER: April 4 Artichoke household penetration is PASSOVER: March 29 Easter, a Christian celebration, is a family approximately 30 percent nationally, adds The first Passover Seder starts at sun- holiday that features ham and turkey along down on March 29, and it begins an eight- with side dishes and desserts that incorpo- day religious celebration for those of the rate springtime produce items such as arti- How Three Jewish faith. Schueller points out, “Passover chokes and strawberries. is a time when traditional foods are eaten. Kori Tuggle, marketing manager for Retailers Sales of horseradish can triple during this Ocean Mist Farms, in Castroville, CA, notes, time so it’s best to stock up and display “March through mid-May is peak season for Promote Spring horseradish on an end-cap, along with other artichokes. The crop generally starts peak- Produce sparagus, strawberries, pineapple and salads are among the top produce A items promoted around an Easter or Spring theme in retailers nationwide. Jeff Fairchild, director of produce for New Seasons Market, a 9-store chain based in Portland, OR, says, “It can be iffy with the weather, but we like to promote first of the season asparagus and strawberries for East- er. For the asparagus, we partner with a grower in central California. For the strawber- ries, we look for a supplier where we can offer high quality berries and aggressive pric- ing. It really brings people to the store when these two items are on ad.” At B&R Stores Inc., an 18-unit chain head- quartered in Lincoln, NE, which operates under the Super Saver and Russ’s Market banners, produce director, Randy Bohaty, agrees. “We will feature either asparagus, strawberries or pineapple as the lead ad item in each of our formats with the other two items also promoted at the same time.” He adds, “Up until Easter, we stock aspara- gus as a convenience to our customers. But, for Easter, we expand the display size from 1 to 4 feet, depending on the size of the store, and make sure it’s in a high traffic area.” In addition, clamshells of fresh strawber- ries are cross-merchandised with shortcakes from the bakery. Whole pineapple, as well as fresh-cut pineapple displayed in a mobile refrigerated unit, are merchandised and signed as an ideal accompaniment to Easter hams. Spring Salad Days are the theme of a two- to four-week promotion around Easter at Rice Epicurean Markets, a 5-store chain based in Houston, TX. Mark Luchak, director of produce, says, “We promote a variety of lettuces and bagged salads, as well as top- 67

# pings such as pine nuts, walnuts and dried cranberries. We’ll put these items on ad together as well as cross-merchandise them at the display, with different combinations during each week of the promotion.” pb Reader Service

24 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 2 Tuggle. “With less than half of shoppers making the decision to buy at the store, it increases the importance of reaching out to Cinco De Mayo Promotions At people at home about artichoke usage, nutrition and preparation. We’ve invested in Dorothy Lane And Schnuck our Web site, as well as social media tools such as YouTube, Facebook and Twitter.” Markets Highlight Recipes “While weather is always a big factor, the data we have seen indicates that acreage is Recipes are one method by which retailers at Dorothy Lane Markets and Schucks sell up this year for all berry varieties, including more produce for Cinco de Mayo. For example, Jose Manzano, produce director at the three- strawberries, raspberries, blackberries and store Dorothy Lane Markets, based in Dayton, OH, offers customers the guacamole recipe blueberries,” reports Gloria Chillon, director he and his wife, Patty, enjoy. “Avocados are the big item to promote,” says Manzano. “We of marketing for Driscoll’s, headquartered build big displays and cross-merchandise tomatoes, onions and cilantro.” in Watsonville, CA. Specifically, we’ll have Recipes such as Southwest Steak Fajitas and Mexican Chicken Bites with a Cilantro-Lime significant production growth from our Salsa have been merchandised in the past, along with other items such as beef skirt steak Oxnard, Baja and Santa Maria regions to and chicken breast from the meat department. Manzano says, “Cinco de Mayo is a whole help fulfill consumers’ strawberry demand store promotion for us. We look at it as a party opportunity and a chance to add excitement from January to early May.” to the shopping experience.” “For strawberries, the 1-pound clamshell At Schnuck Markets Inc., based in St. Louis, MO, recipes such as Jicama, Corn and has been a consistent winner, but larger Pineapple Salsa were featured. At the same time, fresh jicama and tomatillos were featured sizes, such as 2- and 4-pound clamshells, are on special as Schnuck’s Pick of the Month items throughout the month of May. pb growing in popularity as consumption con- tinues to grow,” Chillon adds. Therefore, we recommend allocating half of promotional strategy. Try expanding this Chris Christian, vice president of trade the strawberry display to 1-pounders and concept to multiple berry purchases, for and nutrition for the Watsonville-based Cali- the rest to larger sizes.” example, buy two strawberry clamshells and fornia Strawberry Commission (CSC), says, In addition to their everyday appeal, get a raspberry free. When customers try the “The 2-pound clamshell of strawberries is Chillon remarks, “Berries are still something idea of buying and using multiple berries in the fastest growing item in the category. It special for family gatherings and holidays. A common situations, such as a holiday event represents 13 percent of strawberry sales, good merchandising strategy is to move the or picnic, they will continue to do so, even while the 4- and 1-pound clamshells com- berry patch from the store to the home. when not on promotion.” prise 5 and 75 percent of sales, respectively. Buy-one-get-one-free (BOGO) is a frequent The biggest incremental lift in berry cat- 62 56 # # Reader Service Reader Service

26 PRODUCE BUSINESS • FEBRUARY 2010 egory sales comes when strawberries are CA-based California Avocado Commission included in the ad with another berry item, CINCO DE MAYO: May 5 (CAC), avocado shipments for Cinco de says Christian. “Total berry category sales Cinco de Mayo is a Mexican national hol- Mayo in 2009 reached 63.6 million pounds, increase 113 percent when only strawber- iday, says Melissa’s Schueller, “that today, up from 55.7 pounds in 2008, and overtook ries are on ad, yet 140 percent when straw- has been Americanized. Therefore, it is Super Bowl as the largest single holiday for berries and one other berry item are pro- important to stock and promote the right avocado sales in 2009 by more than 10 mil- moted simultaneously.” mix of ingredients, both traditional and lion pounds. Jan DeLyser, vice president of more contemporary, based on store demo- merchandising for the CAC, says, “Festive graphics and past sales data. This can display techniques using colorful props and EARTH DAY: April 22 include fresh chilies, Latin vegetables such signage as well as references to Cinco de Earth Day is a commemoration that as tomatillo, jicama and chayote, plantains, Mayo remind shoppers of the occasion. inspires awareness and appreciation for the limes and avocados for guacamole.” Increase the size of your primary avocado environment and an ideal time to promote Avocados are an especially attractive display as well as move the primary display organic fruits and vegetables. Samantha item for promotion. According to the Irvine, to the front of the produce department to Cabaluna, director of communications for Earthbound Farm, in San Juan Bautista, CA, says, “Earth Day is definitely a time of peak promotion for organic produce. It’s impor- tant to understand that consumers who haven’t purchased organic in the past may test the waters, as they search for a simple way they can help make a positive differ- ence in the health of the environment.” Organic apples and pears are products Wenatchee, WA-based Stemilt Growers Inc., promote for Earth Day, shares marketing director, Roger Pepperl. “Storage techniques, low oxygen protocols and other tools, have allowed us to keep organic fruit longer into the season. We’ll have organic Anjou and Red Anjou pears in April as well as a nice selection of organic apples such as Red Deli- cious, Golden Delicious, Granny Smith, Fuji, Braeburn, Cameo and Pink Lady.” Pep- perl adds, “We offer a cohesive, themed pro- gram designed to run for two to three weeks around Earth Day that provides signage, posters and ads that tie into our sustainabili- ty program and its efforts.” Similarly, Cabaluna notes, “We develop an integrated information- and activity-rich promotion that touches consumers at retail — with a coupon — and through the Web — with an activity and a giveaway — with the goal of increasing enthusiasm for choosing our organic produce, then we roll that out to our retailers. We always make it turnkey to give retailers an easy way to celebrate this organic ‘holiday.’” For its Earth Day 2010 promotion, the company will include the promotion of co-founder Myra Goodman’s new cookbook, The Earthbound Cook. Melissa’s will also introduce its new cookbook in April, Melissa’s Everyday Cook- ing with Organic Produce, which offers more than 400 recipes, including quick- prep recipes and deliciously easy varia- 28

tions, as well as a special section of meat- # less options for vegetarians. Schueller says, “We will have shippers available for the book to be merchandised directly in the produce department.” Reader Service

FEBRUARY 2010 • PRODUCE BUSINESS 27 drive awareness of the holiday.” The CAC offers display bins with the Five Retailers Creatively Partner Hand-Grown in California thematic, head- er cards and recipe tear-pads. DeLyser With Produce For Kids adds, “Research has shown that multiple displays of avocados increase retail sales. ive retailers across the Consider a primary display of avocados nation — Publix Super Mar- displayed next to tomatoes, followed by a F kets, the southwest division secondary display near limes/lemons. of Kroger, Meijer, Price Chopper These combinations have been shown to and Giant Food — were among be the most effective at driving increased those that participated in the sales/volume. Research also demonstrates Spring 2009 Produce For Kids that displaying at least two sizes of avoca- (PFK) fund-raising campaign. dos at retail increases sales and volume Each retailer creatively cus- while building your category in the long tomized the promotion to make term. To have the largest impact at retail, the biggest impact in its stores. Photo courtesy of Produce For Kids sizes and price should be easy for con- For example, Publix featured PFK in its in- reach the finish line received a Kroger gift sumers to distinguish.” store cooking program called Aprons. Two card valued at $50. The remaining kids In addition to consumer advertising, the recipes were developed using Publix suppli- received gift cards valued at $10. CAC will also embark on an extensive trade, ers’ products. These recipes were featured in Meijer featured PFK in its ‘Party in the public relations, online and social media all Publix stores with an Aprons program. The Parks’ community service program through- program this year. Facebook, Twitter and recipes were Chicken Veggie Confetti Wrap, out the month of June. Sponsor’s products YouTube activity will increase. DeLyser which called for carrots, celery, broccoli and were distributed along with coupons and says, “Our social media tactics focus on the onions and Fun and Fruity Salsa, which con- information about the campaign. The events sharing of useful and interesting content tained mangos, apple slices, pineapple, were held in local parks in Grand Rapids, MI, that appeals to the California Avocado fan, tomatoes, Vidalia onions and bell peppers. throughout the summer. Local television sta- including artisan chef recipes, grower sto- Kroger stores in Dallas and Houston, TX, tion WOTV provided extensive television ries, tips, press coverage and events. hosted an in-store scavenger hunt for a coverage of the events. Tomatoes are a big part of Cinco de group of children who were former patients Price Chopper and Giant both featured Mayo and other spring produce promotions. at Children’s Medical Center. Upon arrival, the PFK program in their monthly media out- Kieran Comito, vice president and treasurer the kids received a product list and a Kroger reach. Both retailers have relationships with for Capital City Fruit Co. Inc., based in Nor- reusable shopping bag. The kids then raced local market TV stations where the retailers’ walk, IA, reports, “In the spring, we get to find at least nine of the 13 sponsors’ in-house Registered Dietitians do segments tomatoes out of Florida and Mexico. Promo- selected items in the produce department. about healthy eating that air on local tional volumes can change weekly as a The first child to locate all nine items and television. pb result of the weather. The best advice for retailers is to take advantage of hot buys promotional volumes remain strong also the first official barbecue day of the when the volume is up and there’s an attrac- through Memorial Day.” Ideally, Tjerand- year,” reminds Schueller. Fresh ears of tive price.” sen recommends, “Retailers should carry corn, potatoes and newly harvested sweet The Maitland-based Florida Tomato large and small diameter asparagus as well onions are big seasonal promotional items Committee offers hands-on help as well as as those that are medium-sized. There are for the grill. promotional materials such as recipe cards, different usage occasions for all three, so Jason Stemm, spokesperson for the Mait- signage and posters for field tomatoes. one doesn’t cannibalize sales of the other; land, FL-based Fresh Supersweet Corn Samantha Winters, director of education sales are incremental.” Council, says, “Depending on the weather, and promotions, says, “We’ll have our mer- One of the most frequent consumer supersweet corn will be in good supply out chandising team working with retail buyers questions to the CAC, says executive direc- of Belle Glade in Palm Beach County, FL, in this spring. They’ll be communicating our tor, Cherie Watte Angulo, “is where can they March, April and May.” Retailer and con- latest research, as well as offering a menu find the larger diameter asparagus.” Limited sumer demand is for 50 to 60 percent bi- of customized promotions such as display quantities of a new asparagus variety, devel- color with the rest of the crop evenly split contests.” oped by the University of California and between yellow and white corn, reports called UC115, is being planted this year, Stemm. “We’ve also started to see more says Angulo. “It has a longer green spear value-added corn products, such as husked, MOTHER’S DAY: May 9 and tighter tip.” microwave-ready ears, ears cut in half, mini- Melissa’s Schueller knows, “Mother’s Day The CAC warns asparagus should not be cobs for snacking and cut 3-inch wheels of is a great time to promote omelet and break- displayed in standing water due to the risk corn for use in soups and salads.” fast ingredients such as herbs, mushrooms of microbial contamination. Instead, spears This year, the Council will offer new in- and fresh fruit.” should be merchandised upright in bunches store radio commercials, POS signage and Asparagus is also a vegetable that is on a moisture pad. display posters that tell the story of the often featured for this holiday. Tom three and four generations of Florida farm- Tjerandsen, spokesperson for the El Cen- ers who grow the state’s supersweet corn. tro-based California Asparagus Commis- MEMORIAL DAY: May 31 Glen Reynolds, produce buyer for pota- sion (CAC), says, “The California industry Memorial Day is a time to recognize toes and onions for the Raleigh, NC-based starts harvest around January 20th and those who have served their country. “It’s L&M Companies Inc., remarks, “Russet and

28 PRODUCE BUSINESS • FEBRUARY 2010 This year, the VOC is partnering with as bagged salads, tomatoes, apples, oranges, Dreamworks Animation in a promotion that bananas, berries and mangos participated in utilizes the Shrek character to reach a the Produce For Kid’s (PFK) spring cam- younger and newer generation of cus- paign last year. Kari Volyn, the communica- tomers. The theme is: ‘What do Ogres and tions director for the Orlando, FL-based Onions have in common? Layers of origi- organization, says, “Produce for Kids is part- nality, Shrek forever after, Vidalia forever nering with several retailers and fresh fruit sweet.’ Brannen explains, “The fourth Shrek and vegetable growers to help shoppers give movie will come out May 21st and it’s the money to local Children’s Miracle Network peak of our season. It’s the first 3D Shrek, Hospitals this spring. From May to June, so there will be quite a media buzz. All of participating fruit and vegetable growers our POS materials will include the Shrek will make a donation to a local children’s image, which has an 89 percent awareness hospital based on sales of their items at par- rate with parents of kids ages 6 to 12, the ticipating markets.” highest of any animated character.” PFK provides a complete turnkey promo-

Photo courtesy of the Vidalia Onion Committee Posters, price/shelf cards and tear off tional campaign that includes publicity, The Vidalia Onion Committee is team- pads with kid-friendly recipes such as Don- merchandising display materials, advertis- ing up with Dreamworks’ Shrek IV to key’s Savory Onion Parfait (sour cream with ing support, Internet marketing and spon- create kid-friendly POS material. caramelized onions for fresh vegetable dip- sor-funded donations. In exchange for par- red-skinned potatoes are popular for cook- ping), Swampy Joe’s (sloppy Joe with ticipation in the campaign, retailers agree to outs and potato salads. We sell a good vol- chopped spinach and Vidalia onions in the promote the sponsors’ products during the ume this time of year. In addition, Vidalia mix) and Shrek’s Toad Stool Stacks (veg- 60-day time period. Volyn asserts, “The ben- onions start in mid-April and are available etable loaded meatloaf), will support the efit to the retailer is something fresh and fresh through the end of June.” promotion at retail and will be used in in- new in the produce department that raises Wendy Brannen, executive director of store display contests. The consumer who money for charity while also educating the Vidalia Onion Committee (VOC), based enters and wins the online sweepstakes and shoppers about the benefits of eating fresh in Vidalia, GA, says, “Years ago, Memorial the produce manager who wins the display produce, which ultimately drives sales.” Day meant hot dogs and bratwurst. Today, contest, will be rewarded with a trip to Uni- Over the last six years, PFK and its part- you see a lot more vegetables, such as versal Studios in Orlando to see the Shrek ner retailers and participating fresh pro- Vidalia onions, on the grill, as people try to 4D attraction. duce companies have raised more than eat more healthfully.” Suppliers of potatoes and onions, as well $2.4 million. pb 38 71 # # Reader Service Reader Service

FEBRUARY 2010 • PRODUCE BUSINESS 29 Despite Record-Breaking Cold, Florida Produce Will Recover As farmers deal with the repercussions of the recent cold snap, they continue to be optimistic, ensuring Florida will continue to be a leader in produce production.

BY JON VANZILE

Local produce is alive and well at Winn-Dixie. ter and spring. Depending on the crop, the Florida The supermarket giant, with operations harvest generally straddles harvests to the south throughout the Southeast, works hard to and north, with vegetables and fruits available “tell the story” of its produce — where it through the winter and early spring months. came from, how it was grown and even who According to the Florida Department of Agricul- grew it. ture and Consumer Services, Florida growers sup- ply about 70 percent of the winter fruits and vegeta- “We push fresh and local,” said Mike Krage, vice bles consumed in the United States. At least that is president of produce for Winn-Dixie Stores Inc., how it is supposed to work... based in Jacksonville, FL. “It’s the right thing to do for freshness. It’s the right thing to do for sustain- AN HISTORIC COLD SNAP ability because it takes less fuel to transport pro- This year, in early January, Florida experienced duce. And in this economy, it’s vital to source with the most severe extended cold snap and freeze the local growers as much as we can.” state had seen in decades. During the height of the For Winn-Dixie, local means Florida produce, snap, much of Florida’s agricultural belt, which which is an asset considering Florida is one of the extends from Palm Beach County northward, expe- largest vegetable- and fruit-producing states in the rienced several nights of freezing temperatures. country. Florida growers supply winter and spring All eyes turned to Florida’s fields as experts cucumbers, beans, tomatoes, squash, berries, citrus, waited to see what impact, if any, the cold weather broccoli, lettuce, cabbage, celery, corn and other would have on the Florida crop. “This is peak har- crops to the national market, with heavy distribu- vest season for many Florida drops, so damage at tion along the East Coast. this time could have significant consequences,” Florida’s growers take an Florida Agriculture Commissioner Charles Bronson active role marketing their told USA Today. produce as local. Nichole Immediately after the freeze was over, both the Towell, marketing develop- Florida Department of Agricultural and United ment manager for Duda States Department of Agriculture officials traveled Farm Fresh Foods Inc., in to farms across the state to assess the damage and Oviedo, FL, points out, “All determine if an emergency should be declared. In of our Florida product pack- media outlets throughout the state, growers were aging contains the Fresh reporting widespread damage to winter and spring From Florida logo, which crops. “We are continuing to examine a wide spec- denotes the product was trum of crops that have been impacted by the grown in Florida. This is a freeze,” reports Dan Sleep, supervisor and senior great way to bring attention analyst with the Florida Department of Agriculture, to locally grown items.” located in Tallahassee. “Many products have tem- Because of its long, porarily scaled back harvesting and stopped har- mild winters, the Florida vesting completely to assess the damage. Measur- growing season is gener- ing the impacts of a multi-billion dollar industry ally the opposite of North- with thousands of growers isn’t an easy task and ern states — so Florida involves vast amounts of data review, analysis and growers harvest in the win- countless submissions from farmers.”

30 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 37 As of late January, no emergency had been declared, but the full effects of the Florida: Land Of freeze had yet to be felt. Some crops — cab- bages, broccoli and celery, for example — The Winter Tomato fared well during the cold weather. Others, such as tomatoes, were in between harvests, or many years, Florida winter produce fresh tomatoes sold in the country’s super- so growers averted some damage by simply has been virtually synonymous with markets are sold in the Northeast and South- waiting to do their second planting of the sea- F two crops: citrus and tomatoes. The east,” says Samantha Winters, director of son. Still others, such as citrus and berries, Florida tomato season runs from October to education and promotion for the Florida experienced moderate to severe damage, June, and during these months, the state Tomato Committee. while the jury was still out on damage to supplies the vast majority of fresh tomatoes Overall, Winters reports fresh tomatoes crops such as squash, peppers and beans. eaten in the United States. Fortunately, the contribute almost 7 percent of the overall “A letter went out to the Secretary of Agri- freeze is not expected to dramatically affect fresh produce sales — a number that can be culture, Tom Vilsack,” says Lisa Lochridge, Florida’s tomato harvest. increased through effective merchandising. director of public affairs for the Florida Fruit According to the Maitland-based Florida “The power of a cross-promotional sugges- & Vegetable Association (FFVA) in Maitland, Tomato Committee, the fresh tomato market tion is boundless,” Winters says. To support FL. “It was a heads-up letter because we don’t is concentrated in the Northeast and South- cross-promotional activities, the Florida know the damage, but it might be significant.” eastern United States, because that’s where Tomato Committee offers recipe cards, promo- the majority of fresh tomatoes is sold. tional posters and shelf cards to retailers with THE MARKET EFFECT “According to the most recent Perishables slogans such as “What Salads Crave” and The freeze affected each grower differ- Group retail scanner data, 70 percent of “What Sandwiches Dream Of.” pb ently, so it’s impossible to generalize across the entire Florida produce industry. damaged crops with fast-growing vegetables, body’s going to come to market at the same But based on previous experience with such as cucumbers and squash, or delay sec- time and we’re going to suffer losses,” said freezes in Florida, long-time growers and ond plantings until the weather is more Chuck Obern, president of C&B Farms Inc., retailers predicted some typical fall-out favorable. In either case, the result is a com- in Clewiston, FL. Obern grows corn, beans, that will affect prices, harvest and mer- pressed harvest window about 90 days after peppers, tomatoes and eggplant. “And chandising opportunities. the freeze event as growers pick everything everybody’s going to replant cucumbers The most immediate reaction, they said, they can before markets to the north start and squash because they’re the fastest takes place in the fields. Depending on the producing competitive produce. growing crops.” crop, growers will either race to replace “Everybody’s going to replant and every- Chuck Weisinger, president of Weis-Buy 51 # Reader Service

32 PRODUCE BUSINESS • FEBRUARY 2010 Farms Inc., in Fort Myers, FL, also predicted play space make it easy for consumers to array of produce. In recent years, Florida a market glut, with a compressed harvest find and make selections. To grab shoppers’ farmers have begun planting sweet corn, and reduced prices. This “conventional wis- attention, channel strips and danglers are beans, Chinese cabbage, and in the Southern dom,” however, is far from settled. Several available to retailers promoting healthful part of the state, watercress and arugula. growers interviewed for this article scoffed attributes of the product,” she adds. “A number of growers of these crops have at the idea of a market glut and said it Some large-scale growers, such as L & M, told us that the freeze will have no effect on would be impossible to tell how the spring support such marketing programs by offer- the spring crops,” Sleep says. “Our farmers crop would look. ing bios of individual growers and photos of look at the consumers’ needs and try to ful- “The winter crops got devastated,” notes the farms where the product is grown. fill those needs.” Brett Bergmann, vice president and general Another crop that has been making manager of Hugh H. Branch Inc., in Paho- NEW FLORIDA CROPS inroads in Florida is the blueberry, which is kee, FL. “But the spring crop should be OK. Traditionally associated with citrus, straw- normally associated with colder climates. Everything is on schedule and I don’t see it berries and tomatoes, Florida farmers have According to Lochridge at the FFVA, acreage pushing back or moving forward.” been diversifying for years to produce a huge of blueberries is rising. pb Greg Cardamone, general manager for Raleigh, NC-based L & M Companies Inc., reported that his spring crop was hit hard. “Our Southern farm, in Immokalee, which produces peppers, cukes, tomatoes, chili pep- pers, squash and eggplants, lost 25 to 75 per- cent of the spring crop,” Cardamone admits, just days after the freeze. Duda’s Towell remains upbeat. “The extended cold and freezing temperatures Florida experienced have had minimal effect on our vegetable crops,” she reports. “At this time, we remain optimistic that our crops weathered the storm without any major dam- age or loss. All planting and harvesting oper- ations on the farm have resumed.” While uncertainty due to Mother Nature is normal in the produce business, in some cases, growers themselves can complicate the issue: talking down their harvest, or conservatively estimating the availability of certain crops, making large retailers ner- vous about committing to promotional campaigns, which are frequently planned several weeks in advance for large chains. As a result, produce buyers might be tempted to turn to “sure thing” crops from Chile or Mexico to fill the shelves.

HOW TO MERCHANDISE Clearly, the normal challenge of mer- chandising Florida spring fruits and vegeta- bles becomes even more complicated in a year when an historic freeze warps the mar- ket. But there are still plenty of ways to move Florida produce — just as Winn-Dixie has done. One major strategy is to focus on the increasingly popular “locavore” movement of shoppers who seek local, fresh produce. “We use billboards, circulars, radio and point-of-sale opportunities in the stores,” says Winn-Dixie’s Krage. “Our billboards 85

throughout Florida feature family growers # and specific farms. We really play it up.” Towell recommends retailers merchan- dise celery products by placing them adja- cent to one another. Whole celery, hearts,

sticks and branches located in the same dis- Reader Service

FEBRUARY 2010 • PRODUCE BUSINESS 33 Mexican Mangos — Choosing Beyond Color As American consumers learn more about the many mango varieties available, color may matter less and less.

BY JACQUELINE ROSS LIEBERMAN

As we enter Mexican mango season this year, “They think that red means quality. They just American consumers are just beginning to don’t know,” she says. “We’re trying to let con- realize all that each variety has to offer. sumers know these green- and yellow-skinned varieties can be really fantastic.” Mexican mango shipments to the United States “The average American consumer buys more are poised to begin in February, will peak in March with their eyes, and they associate red with ‘good,’” and April and taper off in September. A majority of adds Larry Nienkerk, NMB chairman and partner the mangos consumed in the United States (64 per- and general manager for Burlingame, CA-based cent, according to the Orlando, FL-based National Splendid Products LLC. “But the truth is, you can’t Mango Board) come from Mexico, which grows five judge a mango by its color.” of the six major commercially available varieties: The NMB has seen much success since it began Tommy/Atkins, Kent, Keitt, Haden and Ataulfo. working for the industry in 2006 to help educate (The Francine variety is available only from Haiti.) consumers, retailers and foodservice professionals Tommy/Atkins, which have a large amount of and drive increased purchases of mangos. “We are red blush on the skin, are the most widely avail- seeing these efforts gain traction,” says McManus. able and most popular mangos in the United “Mango consumption in the United States has States. In addition to their popularity among con- quadrupled since 1990 to an estimated 2.2 pounds sumers, retailers prefer them because of their long per person per year in 2008. Although data is not shelf life. As a result, many consumers are unfa- yet available for 2009, we believe the recent eco- miliar with green- and yellow-skinned mangos. nomic downturn will have slowed the demand “Consumers associate the red coloring of a mango growth, but not reversed the trend.” She adds, “The with being ripe,” says Wendy McManus, director of growing Hispanic and Asian populations in the marketing for the National Mango Board (NMB). United States are helping to drive mango demand. In addition, U.S. consumers are becoming more adventurous in their eating choices and ethnic foods are increasingly popular.” Much of the NMB’s efforts are directed toward consumer publications. “In 2009, our consumer media messages reached consumers over 409 mil- lion times,” details McManus. “If we tried to pur- chase all of the space and time as advertising, it would have cost over $22 million to do so,” notes McManus. “That’s 104 times more than what we actually invested to get the coverage.” “For our first four years, we’ve been focused on the mango basics — how to cut, select, ripen and store them, along with recipe ideas,” McManus con- tinues. “In the past year, editors started asking for more in-depth information, such as varieties and

Photo courtesy of Ciruli Brothers LLC levels of ripeness.” So this year, the board is shifting Ataulfo mangos are a growing segment of the mango its goal from general education about mangos to category. teaching Americans about specific mango varieties.

34 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 23 As a direct result of this feedback, the board Ataulfos grow at a rapid rate, most likely developed Virtual Test Kitchen, a program because consumers are discovering their designed to provide in-depth education to “New POS will be attributes. The Ataulfo’s size, which is rela- editors and writers at national magazines, available to educate tively smaller than the more predominant top newspapers and Web sites about mango Tommy/Atkins, also makes it a good fruit to varieties and how to use mangos at different shoppers about sell in multiples. “That helps drive sales,” levels of ripeness. yellow- and green- says Ciruli. “We’ve seen the fastest growth in In addition, mangos will be featured on a six-pack clamshells.” full-page, full-color newspaper article to be skinned mangos. Consumers themselves have driven published in the food sections of major daily These were much of the demand for multiple mango newspapers across the country during the varieties up until now, “especially starting spring and summer months. Ingrid Hoff- developed in with the ethnic trade and then expanding mann from Food Network’s television show into the general market,” confirms Nienkerk Simply Delicioso will also share some of her response to retailers of the NMB and Splendid Products, which favorite summertime mango recipes for a who report that markets Ataulfo mangos under the Honey segment to appear on cable television on Manilla name. the Home and Health Report and on the when the mangos Retailers are also a force behind the iTV network of cable news station Web sites aren't red, their sales growing sales of multiple mango varieties. throughout the summer. The segment will “A lot more retailers seem to be featuring include a recipe demonstration, as well as drop off.” additional varieties beyond just the education about the selection, ripening and Tommy/Atkins,” says Jerry Wagner, director cutting of mangos. “Based on similar pro- of sales and marketing for Farmer’s Best — Wendy McManus grams in the past, we expect this video to be International LLC, based in Rio Rico, AZ. National Mango Board viewed approximately 28 million times,” In some cases, it is just a matter of con- predicts McManus. sumers taking a chance on the varieties The NMB aims to reach consumers at retailers make available, and many are the retail level as well. “As always, we will Tommy/Atkins, Haden, Kent and Keitt surprised and happy with what they find. be working with retailers across the country mangos. “The most popular mango we sell “The yellow and green varieties are to set up effective promotions for mangos,” is the Tommy,” says Maria Brous, director becoming much more popular, much like McManus reminds. “Our promotional funds of media and community relations. “While boutique apples are becoming popular,” are limited, so we try to be very fair by the Mango Board is doing a good job of pro- says Nienkerk. matching the allocation of funds to the vol- moting the yellow- and green-skinned That interest combined with the NMB’s ume of the crop. As a result, we will aim to mangos, the effort is fairly recent. It will newest efforts could mean several varieties spend 39 percent of our retail funds in the take some time for consumers to change are poised to take on popularity. “As the second quarter and 26 percent of our funds their buying habits,” she predicts. mango consumption in the United States in the third quarter. We will spend roughly But before the NMB’s campaign has matures and consumers become more edu- $260,000 to set up retail promotions during kicked into gear, a few consumers are cated about the other varieties and the these two periods, which will impact the already beginning to learn for themselves excellent eating qualities they all present, Mexican mango season.” that every mango variety has something to retailers are more likely to promote them,” Retailers can expect to see some changes offer. While Tommy/Atkins are large and explains Wagner. in the information the board provides for fragrant with firm, juicy flesh, Kents are their use as well. “Just as we are taking our green-skinned and very juicy with a sweet, BETTER PROMOTIONS consumer education to the next level in the rich flavor. Yellow-skinned Ataulfos have a Offering more than one mango variety is media, we felt it was time to get more spe- full, very sweet flavor, a velvety texture that just a first step for retailers who wish to sell cific in how we talk to shoppers about man- lacks the fibers found in other mangos and a more mangos during the Mexican season. gos in retail stores,” says McManus. “New thin pit. “Even though this variety is gener- To encourage sales, retailers can take an POS will be available to educate shoppers ally smaller than its red or green counter- active part in consumer education. They about yellow- and green-skinned mangos. part varieties, you still get a very good can do this with the help of the NMB as well These were developed in response to retail- amount of edible fruit,” explains Sandra as suppliers of Mexican mangos. “Among the ers who report that when the mangos aren’t Aguilar, marketing manager for Ciruli Broth- main drivers that boost mango purchases at red, their sales drop off. Each message will ers LLC, in Rio Rico, AZ. Because of its diffi- the retail level are education, promotion and be available in an 11- by 7-inch header card cult to pronounce name, Ataulfos are often consistent, good-eating quality,” says or a 5- by 3-inch tear pad with a recipe on sold under other names, such as the Cham- Aguilar of Ciruli Brothers. “In addition to the back.” pagne mango, marketed exclusively by Cir- consistently good fruit, we provide our cus- uli Brothers. tomers with POS signage; we add recipes to SOMETHING FOR EVERYONE “Customers are definitely looking for our value-added packaging; and we sponsor It may be months from now before any more yellow mangos,” admits Ronnie a consumer-based Web site to provide con- of the NMB’s efforts begin to have a real Cohen, vice president of sales for Vision sumers with a wide array of mango informa- impact on consumer buying habits, and Import Group LLC, located in River Edge, tion, including nutritional content, delicious some retailers are wary of carrying mangos NJ. “It’s definitely a growing presence in the recipes and preparation ideas.” other than Tommy/Atkins. mango category.” Publix already promotes mangos through Publix Super Markets Inc., based in Chris Ciruli, chief operating office for print ads as well as in-store. “Traditionally, Lakeland, FL, offers its consumers Ciruli Brothers, reports he has seen sales of when we feature mangos in our weekly ad,

36 PRODUCE BUSINESS • FEBRUARY 2010 Not only our tomatoes, but our cucumbers, peppers, squash, melons, grapes and other produce we grow are picked at the peak of ripeness and color, providing great taste and nutrition. That's because they're treated with the best growth-promoter there is: tender loving care. Your customer also has the assurance of food safety programs that are some of the most stringent in the industry, including two separate third-party audits. Our sustainability and social responsibility programs have even won awards. All this is why your customer is now holding a tomato that is much more than you see: a tomato treated with TLC. Call our Sales Office at 520-281-1411, or visit us at www.farmersbest.com.mx

Reader Service # 42 Photo courtesy of the National Mango Board. New POS materials are available to educate shoppers about yellow- and green-skinned mangos, courtesy of the National Mango Board.

stores will demo them,” explains Brous. “In addition, we have our Publix Simple Meals program where we create weekly recipes in- house. Each store demos the meal idea for the week, provides customers with a recipe card and then has all the ingredients neces- sary to recreate the meal at home conve- niently located in an adjacent kiosk. Some of our weekly meals include mangos.” All of these merchandising techniques can lead to increased sales of every mango variety. “POS materials are an excellent way of educating the consumer, as well as demos and sampling. We have seen an increase in demand at retailer stores that demo the product,” reports Gary Clevenger, managing member of Freska Produce International LLC, headquartered in Oxnard, CA. Because some consumers need convincing that man- gos without red skins can be just as deli- cious as those with, sampling can be espe- cially helpful. Now is just the beginning for mango con- sumption in America, and many believe sales will only increase as Americans learn just how many wonderful types are avail- able to them. What’s more, it is possible that additional varieties will be grown for Ameri- can consumers in the near future. Although only six varieties of mangos are commer- cially sold in the United States today, Nienkerk predicts more will become avail- able as growers expand the types of mangos they choose to cultivate for mass consump- tion, just as apple growers have done. “We look forward to the day when mangos can command a space on the shelves for multi- ple varietals, particularly as we expand the amount of varietals available,” he says. “The exponential mango consumption and untapped growth within the United 59

# States leaves a positive future that con- sumers will come to understand that color isn’t the only thing that makes a certain mango variety very flavorful,” adds Cohen of Vision Import Group. “It’s a matter of

Reader Service time and consumer education.” pb

38 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 22 MEXICAN MANGOS: QUALITY, DIVERSITY, AND FUN! As more and more consumers seek out mangos, the world’s most popular fruit, successful produce departments carry a variety of high quality fruit that will make cus- tomers come back for more of this fabulous tasting treat. Mexico is the third largest mango producer in the world and the number one supplier of fresh mango to the U.S. market, principally from February to August. The Mexican mango is regarded worldwide as a high quality product, with excep- tional organoleptic properties. A focus on Mexican mangoes will add fun to any retail department as well as displaying your expertise in providing fantastic tropical prod- ucts to meet the growing consumer demand. QUALITY AND RELIABILTY Mexico has a stable and consistent production of high quality mangoes. Produc- tion occurs in 23 of Mexico’s states on a total of 171 thousand hectares. However in 2008, five states were the principal Mango producers, contributing 74 percent of the volume: Chiapas, Oaxaca, Guerrero, Nayarit, Sinaloa (from south to north). Additional- ly, 83 percent of the production is concentrated in the March to July season. The vol- ume of the production of Mango in Mexico has shown a constant growth in the recent years, reporting an annual average growth of 2.3 percent in the 1995 to 2008 period. PRINCIPAL MANGO PRODUCTION AREAS IN MEXICO (HIGHLIGHTED IN GREEN)

Mexico’s mango exporters work hard to produce a quality, safe and reliable prod- uct for consumption. Quality and food safety are very important areas for the Mexican mango industry. All mango exports are certified for Good Agricultural Practices by SENASICA (Ministry of Agriculture of Mexico) and the Mexican mango exporters asso- ciation EMEX has devoted significant resources and time into ensuring all industry participants comply with the highest standards of certification. The Mexican industry has 54 packing plants equipped and authorized for export that comply with the national Phytosanitary stan- dards. In 2009, Mexico exported 43,000,000 boxes to the North American market and has a world- wide export capacity of 280,000 tons. The per- centage exported by variety is shown on the fol- lowing chart with the Ataulfo, Tommy, and Kent still being the most popular. DIVERSITY The key to repeat mango sales is ensuring flavor! Educate employees and ferent varieties come in different colors. Promote the variety and showcase consumers on the varieties available from Mexico as well as the fact that dif- that mangos of all colors can be ripe, sweet and good to eat.

VARIETY SEASON SHAPE COLOR TEXTURE

Haden March to May Medium to big and Green to yellow with firm oval to rounded touches of red color

Tommy/ April to June Medium to big with oval Golden or greenish rind Firm, fibrous Atkins or elongated form shamefacedly vermillion enough texture Keitt June to August Big and oval Green shamefacedly Soft dark red

Kent January to March Big and oval Greenish rind shamefacedly Juicy and dark red and yellow and May to August small points delicate

Ataulfo February Small smooth oval Yellow Like to August butter

FUN As ethnic and gourmet food trends grow and consumers continue to seek and is also rich in natural fiber. out different products, a prominent mango program will add fun and excite- Mexican mangos are promoted via the National Mango Promotion Board ment to any retail department. Health attributes are another positive aspect program which has a wide variety of resources available for retail use. Check to promote. Mango is a rich source of vitamin A and C, both antioxidants, out www.mango.org for more information.

For more information on trade with Mexico, if you would like to participate in a Trade Mission to Mexico, or for business contacts, please contact the Agricultural Office at the Embassy of Mexico: INSIGHT FROM MEXICO

An interview with Jorge Armando Celis Moreno, president of the Mexican HECTOR CORTES Mango Exporters Association (EMEX) in Mexico. Agricultural Attache PB: Is demand for Mexican mangos increasing? (202)728-1727 EMEX: Yes, definitely! Mangos from Mexico have become one of the principal fruits that consumers and their taste buds love. [email protected] PB: What kind of quality control and food safety exists among mangos 1911 Pennsylvania Ave NW packed for export? Washington, DC 20006 EMEX: Exported mangos have very strict quality control, monitored by Mexican organizations with international recognition and incorporating or the specific mango characteristics like sugar content, texture and flavor. On Mexican Mango Exporter Association (EMEX) the food safety side, currently growers and packers are trained with seminars and manuals where they can put into practice the Good Agri- cultural Practices program as well as other programs specific to the EMPACADORAS DE MANGO handling of the fruit. DE EXPORTACIÓN A.C. PB: How crucial is this business to those who are involved in it? EMEX: Mexican growers and packers are involved very directly and it is Calle de la Reyna no 440, Col. Chapalita CP 45040 their primary activity. They receive great support from federal and state Zapopan, Jalisco, México. government. Mangos are a central product for Mexico. +52 (33)3280-2440, (33)3280-2360, PB: What is the most significant thing for buyers to be aware of? (33)3280-2310, (33)3280-2470, EMEX: The variety, seasonality and degree of maturity of the fruit. Knowing the different characteristics of each variety, the seasonality of Lada sin Costo: (01) 800 001EMEX (3639) each of the source areas, and the differing flavor profiles and ripening www.mangoemex.com time will all help to create a program allowing you to offer the best product to the consumer.

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YOU’LL GO HOG WILD OVER OUR PRODUCE! ALL VARIETIES OF TOMATOES directories when you are ready to buy. For additional CUCUMBERS, BEANS, PEPPERS CANTALOUPE AND copies of this directory or any other, please call ALL MIXED VEGETABLES 561-994-1118 Chuck, Richard, Charlie & Jorge and ask for the 520-281-4788 Directory Sales Department

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42 PRODUCE BUSINESS • FEBRUARY 2010 Greenhouse Produce: Challenges & Opportunities The popularity of greenhouse-grown produce continues to rise as it provides a variety of produce during the “off” season.

BY CAROL BAREUTHER, RD

Flashback ten to fifteen years ago and buy- da, “The greenhouse produce industry started as a ing premium, greenhouse produce meant niche market. More growers got into the industry calling growers in Holland or Canada and because of the higher rates of return for the prod- paying top dollar. uct and that resulted in heavy expansion over the past decade. There’s been a tremendous push from Today, expansion in the industry in terms of vol- North American growers, many of whom have ume and close-to-home production has resulted in a adopted European technology and many who have near commodity state for some products. Still, the opened facilities in the Southern U.S. and Mexico. quality and consistency, year-round availability, Volume is up ten times from what it was.” better pricing on some items and niche appeal of As for the products themselves, Fried De others mean real sales opportunities for retailers. Schouwer, managing director of Vero Beach, FL- Jose Manzano, produce director at the three- based Greenhouse Produce Co. LLC, says, “The store Dorothy Lane Markets, based in Dayton, OH, large volume items dominate. This means tomatoes says, “We tend to sell a lot more greenhouse pro- on-the-vine (TOVs) and beefsteaks, although there’s duce now due to the availability. Tomatoes, peppers some experimentation with Romas, Grapes and and cucumbers are the main items.” Cocktail TOVs. In peppers, it’s the red, yellow and orange, and in cucumbers, it’s the long English VOLUME & VARIETIES cucumber, although some are growing mini-pep- According to Craig Laker, director of sales for BC pers and mini-cucumbers.” Hot House Foods Inc., based in Langley, BC, Cana- There also has been an upswing in companies producing hydroponic lettuces. Tomatoes — Quality is a big draw with retailers when it comes to greenhouse- or hot house-grown tomatoes. Manzano remarks, “We don’t carry field tomatoes anymore. Our best-selling and biggest vol- ume tomato is the hot house TOV.” “Ten years ago, hot house tomatoes represented less than 5 percent of tomatoes sold at retail,” reports Doug Kling, senior vice president of sales, marketing and fulfillment for Village Farms LP, headquartered in Eatontown, NJ. “Today, that num- ber has jumped to nearly 50 percent.” According to ACNielsen data for the 52-weeks ending September 30, 2009, as provided by Village Farms, hot house tomatoes represented 46 percent of dollar sales and 33 percent of volume in the tomato category. Much of the hot house tomato category is repre- sented by TOVs. However, many growers have

Photo courtesy of Mirabel Hydroserre Inc. sought to differentiate themselves and to recapture Hydroponic Boston lettuce is the core item grown by Mirabel Hydroserre.

FEBRUARY 2010 • PRODUCE BUSINESS 43 a higher margin for their products by devel- oping new tomato varieties. Chris Veillon, Fuel Costs & marketing manager for Mastronardi Pro- duce Ltd., located in Kingsville, ON, Cana- The Greenhouse Industry da, says, “The future of the industry lies in uel to maintain a greenhouse facili- Some have gone to wood chips. They’ve providing interesting, flavorful, unique ty in a precise and narrow tempera- experimented with geothermal energy in alternatives to consumers. We have the F ture range for optimal growing con- Holland and started to look at it in Califor- largest test facility in North America and ditions is one of the major input expenses nia, too. There’s also solar, but this requires test more than 200 tomato varieties a year.” for the industry. a significant investment.” One of the company’s newest releases is the Pierre Dolbec, vice president of sales for In the future, growers may build Kumato, a brown-skinned tomato known for Hydroserre Mirabel Inc., in Mirabel, QC, greenhouses not because it’s where its sweet flavor. Canada, admits, “It’s not as bad as it was a they live, but because it’s the optimal Mark Cassius, vice president of sales for year or so ago when oil prices skyrocketed. climate, explains Fried De Schouwer, Eurofresh Farms, based in Wilcox, AZ, However, it’s important to be resourceful managing director of Greenhouse Pro- believes, “Flavor is something you can and innovative.” duce Co. LLC., headquartered in Vero actively measure in terms of the Brix/acid Some growers are looking at alternative Beach, FL. “The key is to find a location ratio and flavonoids. Many growers look at energy sources. Craig Laker, director of that offers an ideal combination of tem- seed development in terms of yield and dis- sales for BC Hot House Foods Inc., head- perature and daylight hours. I think this ease resistance, but flavor is something we quartered in Langley, BC, Canada, says, would completely change the competi- actively seek out in order to create a more “This might take the form of natural gas. tive landscape.” pb premium tomato product.” Specific merchandising opportunities Peppers — At New Seasons Market, a 9- volume sold in the pepper category, are another factor guiding varietal develop- store chain based in Portland, OR, director according to ACNielsen data for the 52 ment, adds Cassius. “The convenience fac- of produce, Jeff Fairchild, explains, “We are weeks ending September 30, 2009, as sup- tor, along with the healthful snacking seg- selling more greenhouse products now plied by Village Farms. In addition, Kling ment, is growing in the greenhouse catego- because of the quality. Quality equals points out, “Packaged greenhouse peppers ry,” he asserts. “I think we’ll possibly see appearance. For example, greenhouse-grown have shown a growth in volume of more even smaller tomatoes in development, bell peppers have nice, thick walls.” than 52 percent in the last year. This repre- even though these would be more expen- Greenhouse-grown peppers represent sents items such as the 2-pound bag and sive to produce.” 27 percent of dollar sales and 18 percent of stoplight pack.” 13 # Reader Service

44 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 73 Jeff Taylor, a sales associate with Prime pers represent 31 percent of dollar sales and Time International, headquartered in 26 percent of volume in the pepper catego- Coachella, CA, says, “We’ve definitely seen ry, according to ACNielsen data for the 52 “We’ve seen a an increase in demand for greenhouse pep- weeks ending September 30, 2009, as sup- significant increase pers, in bulk and packaged. Red are the plied by Village Farms. most popular, but I believe that’s a price Village Farms’ Kling says, “Greenhouse, in production issue. Yellow and orange peppers are more baby or mini-peppers increased 8.9 percent expensive to grow.” in dollar sales and 9.6 percent in volume capacity over the last “Small or mini-peppers for snacking is over the last year compared to a 2.5 per- four to five years, something we’ll likely see more of in the cent increase in dollar sales and 2.3 per- future,” believes Jim DiMenna, president of cent increase in volume for hot house Eng- especially south of J-D Marketing (Leamington) Inc., headquar- lish cucumbers. True, the smaller cucum- the border. There is tered in Leamington, ON, Canada. bers represent a smaller base, but the Cucumbers — Greenhouse-grown pep- increase in volume and sales speaks to con- no longer just high- tech greenhouse facilities, but now mid-tech and low- tech, or what’s called ‘shade houses’ or protected agriculture, too.”

— Chris Veillon Mastronardi Produce

sumer interest in the product, especially as a snack item.” Lettuce — Hydroponic lettuce repre- sents only 0.75 percent of dollar sales in the lettuce category, according to Perish- ables Group FreshFacts data for the 52- weeks ending September 26, 2009, as pow- ered by AC Nielsen. However ‘softer’ leaf lettuces are where the category is heading, contends Rick Antle, president and CEO at Salinas, CA- based Tanimura & Antle Inc. “We grow pri- marily Boston, but we will be introducing watercress and fully grown mature arugula this year.” The company’s Living Lettuce line is packaged in clamshell packaging with the root ball attached. Hydroponically grown Boston lettuce is also the core item produced by Hydroserre Mirabel Inc., in Mirabel, QC, Canada. Pierre Dolbec, vice president of sales, remarks, “We expanded our greenhouse capacity two years ago and have added other lettuces such as green and red leaf. In the future, we will be speaking with retailers about other 10

# hydroponically grown lettuces they’d like to be able to offer their customers.”

INDUSTRY DYNAMICS There has been a shift over the years

Reader Service from retailers searching out specifically

46 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 17 greenhouse-grown produce to simply seek- countries such as Mexico — where green- ing high quality product instead. Dorothy house production can flourish in the winter, Lane Market’s Manzano explains, “We, as when Canadian production is low or nonex- “Ten years ago, hot buyers, look for high-quality produce that is istent — has also provided a 52-week sup- house tomatoes flavorful, has good color and is ripe — not ply. Greenhouse Produce’s De Schouwer necessarily that its grown in a greenhouse.” says, “We’ve seen a significant increase in represented less Alberto Maldonado, general manager of production capacity over the last four to five than 5 percent of Nogales, AZ-based Apache Produce Imports years, especially south of the border. There LLC, the exclusive distributor of Melones is no longer just high-tech greenhouse facili- tomatoes sold at Internacional S.A. de C.V., agrees, “Most ties, but now mid-tech and low-tech, or retail. Today, that retailers are looking for good produce and what’s called ‘shade houses’ or protected produce that is safe.” agriculture, too.” number has There’s a significant commitment to Growing under shade house conditions, growing greenhouse produce, hence its tra- instead of an open field, can enhance quali- jumped to nearly ditional premium. For example, a state-of- ty, quadruple production and enable grow- 50 percent.” the-art, fully enclosed, computer-controlled ers to cultivate their crop over a longer win- facility can cost upwards of $1 million per dow of time. For example, Jose Garcia, — Doug Kling acre, says George Gilvesy, general manager director of grower relations at Rene Produce Village Farms LP of Ontario Greenhouse Vegetable Growers, a LLC, based in Rio Rico, AZ, says, “Growing non-profit organization in Leamington, ON, cucumbers in the open field yields about 30 Canada, which represents more than 230 percent of the crop as super-selects. With greenhouse growers in Ontario. Other major protected agriculture, we get 85 percent of House’s Laker. “It used to be that consumer costs include energy to maintain a steady the crop as super-select.” He adds, “We start- demand outpaced supply. Now it’s the other temperature and more intensive labor. ed six years ago with one hectare of protect- way around, and it’s turned us into a com- “What this type of high-tech facility pro- ed agriculture. Now, we are farming 400 modity market. This is particularly true at vides is consistency in flavor and shape, hectares this way and 1,000 open-field. The certain times of the year.” availability and unique varieties that can trend is shifting from field production, but I The boarder, or buffer months, also only be grown in this type of controlled don’t feel we’ll see it shift 100 percent.” known as the transition time from the bulk environment,” says Mastronardi’s Veillon. This increase in production in the indus- of greenhouse production in Canada versus Facilities in states, such as Arizona, and try, “has caused problems,” admits BC Hot Southern U.S. states and Mexico, “are the 5 # Reader Service

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FEBRUARY 2010 • PRODUCE BUSINESS 49 aggressive promotional times in terms of house produce effectively today is a missed Market, “merchandise each product in its pricing,” says De Schouwer. “The end of opportunity,” says Village Farms’ Kling. respective category.” summer, or September and October, is the “The economy has caused retailers to be so Veillon recommends, “Create a destina- worst. Retailers are not interested in shifting price-driven that they are missing out on tion area in the produce department for to Mexico at the time and there’s still good the chance to offer customers a great value. greenhouse tomatoes. Offer an extensive quality field product around. There’s an eas- Consumers are eating more at home these variety of specialty items to complement ier transition in the spring — March and days instead of dining out, and premium mainstream tomatoes.” April. It’s the end of winter and retailers are greenhouse produce should be promoted to Cross-merchandise greenhouse pro- excited to get into greenhouse product the at-home cooks for its high quality.” duce in high traffic areas, advises J-D’s because the items are summery.” Hydroserre Mirabel’s Dolbec points out, DiMenna. “For example, group and pro- “Some retailers like to merchandise all mote tomatoes, cucumbers and lettuce MERCHANDISING & greenhouse produce together in its own cat- around a salad theme, or cocktail toma- PROMOTION egory so customers can readily identify it.” toes, mini-cucumbers and peppers around “Merchandising and promoting green- Others, such as Fairchild at New Season’s the idea of snacking.” As for hydroponic lettuces, Tanimura & Antle’s Antle recommends, “Display them ideally with the romaine hearts and artisan lettuces. This will create less sticker shock than merchandising them next to the ice- berg lettuce. These are cross-over products, not value-added and not a commodity.” In addition, he suggests displaying an open container to show the freshness, variety, tex- ture and volume of the hydroponic lettuce. Beyond quality and flavor, there are many other compelling reasons for con- sumers to choose greenhouse produce. The problem, according to Greenhouse Produce’s De Schouwer, “is that the words ‘hydropon- ic,’ ‘hot house’ and ‘greenhouse’ are confus- ing to customers. Many have heard about greenhouse gases and think growing pro- duce this way is bad for the environment.” In reality, retailers must educate cus- tomers on these points to increase sales, recommends Village Farms’ Kling. “For example, explain that greenhouse produc- tion benefits the environment in a variety of ways. This includes water, soil and land conservation, as well as the use of inte- grated pest management practices. This also makes greenhouse grown product safer to consume.” Growers are helping in this consumer education effort, too. BC Hot House’s Laker says, “We’re using greener packaging, and on the label, we’re including a story and picture of the grower. This happens more with specialty niche items that are packaged, rather than items sold predomi- nantly in bulk. Its all part of our branding strategy.” Promotions are essential to maximizing sales of greenhouse produce. Fairchild reports, “We carry greenhouse produce from November to June when local product isn’t available, and we promote it aggressively 81

# and frequently during this time. It’s not nec- essarily cheap and a large discounter proba- bly wouldn’t be pleased with the price, but we think peppers on ad for $2.99, as opposed to $4.99, is an attractive feature.

Reader Service Customers respond. They buy.” pb

50 PRODUCE BUSINESS • FEBRUARY 2010 The Pallet Puzzle: (Part II of II) Technological advancements and the continuing investigation on behalf of USDA’s APHIS further complicate pallet decisions.

BY JENNIFER LESLIE KRAMER

Having already covered the fundamental pal- ogy within all of its plastic pallets. In fact, each let issues in Part I (see the December, 2009 iGPS pallet has four identical RFID tags internally issue of PRODUCE BUSINESS) it’s time to move on embedded during the manufacturing process, to the nitty gritty. which allows clients to track the pallet’s progress throughout the supply chain in real-time. “Our After all, the devil is in the details, as they say, name demonstrates our difference, which makes it and in the pallet industry, this axiom rings truer clear that we track and trace our pallets throughout than ever. their lifetime, from the moment they leave our manufacturer’s facility,” asserts Bob Moore, chair- PLASTIC GOES HIGH TECH man and CEO. While pallets have been the preferred shipping Moore continues, providing an example of the vessel for decades, they continue to keep pace with efficiency level of his product. “I was at a distribu- the technological advancements of the day. Compa- tion center in Denver a few weeks ago and I was nies are beginning to offer real-time tracking by watching them unload a truck of empty pallets. You embedding RFID (radio frequency identification) could tell they had a lot of miles on them and I was tags within the pallets themselves. One such com- curious as to where they all came from. I took a pany is Henderson, NV-based Airdex. The compa- picture of the bar codes and ID tags from the pallet ny’s lightweight, plastic pallets have GPS technolo- with my Blackberry and emailed it back to our gy embedded directly in the pallet, allowing clients headquarters. In just a few minutes, I knew exactly to track exactly where their pallets have been and where the pallets came from. The customer was how close they are to their destinations. “People stunned,” he adds. “The same thing can happen if want to track cargo as it moves through its global there is a recall due to harmful bacteria. A manu- journey,” says Vance Seagle, CEO. “We have devel- facturer will know immediately which pallets have oped the world’s first real-time tracking pallet, the been affected because they will know exactly Visi-pallet. We embedded a transponder in the pal- where they all have been.” let that will communicate with satellites and report The ability to embed RFID is one of the benefits where the pallet is at any given moment. It can of using plastic pallets. Because they are man-made detect the temperature, the shock absorbency, even and waterproof, the technological possibilities are what kind of cargo is onboard.” endless. A wide variety of honing devices could be Orlando, FL-based iGPS also uses RFID technol- built into any one of the plastic pallets currently on the market. However, when it comes to wooden pallets, the game gets complicated, as suppliers claim that moisture tends to suck up RF energy. While there are a couple wooden pallet companies in Europe experimenting with embedding RFID tags in the corner blocks, this technology has yet to arrive in the United States. In addition to including the latest RF technologi- cal advances in its pallets, Airdex has also created the Opti-Dex, an adaptable pallet designed to fit any size requirement. “We have joined forces with Opti- Ledge, which is Ikea’s new system for creating a pallet to move various sized boxes,” explains Seagle. “However, it came to the market with no deck, so we apply ours — the Opti-Dex. It is about the same

Photo courtesy of Airdex cost as a wooden pallet, but has many more advan- Airdex’s pallets include RFID tags, making them completely traceable. tages. Because it is adjustable, customers can create

FEBRUARY 2010 • PRODUCE BUSINESS 51 any size pallet they need, such as a half-pal- Moreover, Kiolbasa believes his “Total the competitive advantage that wooden pal- let or even a quarter-pallet.” Supply Chain Solution” has solved one of let pooling companies have. Plus, you’ll Layer Saver is pushing the envelope of the major hiccups of the shipping industry. always get the same insert pallets back so plastic pallets with its one-size-fits-all ship- “When it comes to plastic pallets and pro- you can be sure that no harmful materials ping vessel. The Willowbrook, IL-based duce in general, the No. 1 problem is getting have been shipped on your pallets.” company has come up with a two-layered the pallets back. Many plastic pallet manu- shipping system that is built to hold more facturers have attempted to mimic what the THE POWER OF APHIS weight than a standard pallet. The latest leader in the wooden pallet industry — While the wooden and plastic pallet addition to the company’s wares is a propri- CHEP — does, but they have been unsuc- camps have always been competitive, etary, lightweight plastic pallet that can be cessful. This system takes advantage of recently, the situation gained more traction inserted into the base of the Layer Saver. something nearly every manufacturer or when the Animal Plant Health Inspection Charlie Kiolbasa, chairman, founder and producer has, but doesn’t realize it has — a Service (APHIS) department of the USDA CEO, explains the product, “What this will closed shipping loop they use on a daily announced in August, 2009, it would be hav- do is allow inexpensive, plastic pallets, basis, sending product from Point A to Point ing open hearings “to discuss mitigation made from recycled material to be nested B,” he continues. “There’s no harm in hav- measures that could be applied to wood into the base. All domestic pallets work, too ing a dedicated route to collect these pallets packaging material (e.g., crates, dunnage, — both wood and plastic — but our pallets once they have been used. We’ll even pro- wooden spools, pallets, packing blocks) are more user-friendly and the nestability vide drop trailers if there is a large enough used in domestic commerce to decrease the factor provides greater protection.” quantity. Essentially, this takes away all of risk of the artificial spread of plant pests

52 PRODUCE BUSINESS • FEBRUARY 2010 such as the Emerald Ash Borer and the (NWPCA) an organization that represents wooden packaging materials to be either Asian Longhorned beetle.” 700 pallet manufacturers, points out it was heat treated or fumigated with Methyl Bro- Volume 74, No. 157 of The Federal Regis- initially the NWPCA that approached mide to prevent the spread of non-native ter goes on to note, “These and other plant APHIS in an attempt to pursue more invasive species, such as the Emerald Ash pests that could be transported interstate by streamlined and consistent national regula- Borer and the Asian Longhorned beetle. To wood packaging material pose a serious tions for the wooden pallet industry. “More many, including Scholnick, it simply makes threat to U.S. agriculture and to natural, cul- than three years ago, I gave a presentation the most sense to have all wooden packag- tivated and urban forests.” APHIS held a in which I suggested we treat all pallets ing materials — whether being shipped series of four meetings during August and equally, whether they are being shipped domestically or internationally — subject to September in public venues across the domestically or internationally,” he the same rules and regulations. This would nation. Naturally, the entire pallet industry explains. “This way, we could eliminate also be beneficial as all the pallets could be sprang into action. The plastic contingent wood packing material from any potential stored together, without having to worry that viewed it as an opportunity for growth, problems and do for the domestic shipping pallets that once carried chemicals were sit- while some of the wooden pallet companies of pallets the same thing we did for inter- ting next to pallets that were going to carry saw it as a cause for alarm. national shipments.” fresh produce. But what do these meetings mean? Currently, international shipments on Naturally, iGPS is in favor of stricter reg- Insiders, such as Bruce Scholnick, presi- wooden pallets are subject to the Interna- ulations for wooden packaging material. dent of the Alexandria, VA-based National tional Standards for Phytosanitary Measure, Moore admits, “It will increase the cost of Wooden Pallet Container Association, or ISPM-15, regulations, which require all wooden pallets, but public safety mandates

FEBRUARY 2010 • PRODUCE BUSINESS 53 it.” He also points out that even though plas- tic pallets may seem more expensive than their wooden counterparts, when they are in a multi-use pallet pool, this is not always the case. The company has been sending a firestorm of press releases offering research that proves the unsanitary conditions of wooden pallets. In fact, iGPS has even com- missioned some of these tests. One such experiment involved samples from wooden pallets found at markets and food retailers in the Washington, D.C. and Baltimore areas. A press release entitled, “Tests Find Wood Pallets Harbor Deadly Food Poisoning Bacteria,” details the research results of an independent scientific laboratory: “In a lim- ited sample, over one-third of the pallets tested positive for one or more of Salmonel- la, E. coli, Listeria and extremely high bacte- ria counts — such as 6.8 million spores per gram — indicating unsanitary conditions that also could pose a food safety risk.”

“The question becomes whether there has been some issue that has occurred that would indicate the situation regarding contamination needs to be addressed.”

— Tim Smith CHEP

Even though these test results are cer- tainly disconcerting, one cannot be sure what other elements these pallets had been exposed to when they were found that might have had a negative affect. Nonethe- less, iGPS’ Moore confirms in the press release, “These tests support our long-held concerns about wood pallets and the risk they present to America’s food supply. Con- sumers need to know the food they buy may have been sitting on filthy wood pallets containing pathogens. The limited tests we’ve conducted underscore the need for the FDA to conduct a comprehensive inves- tigation and adopt appropriate measures to mitigate the risk presented by wood pallets.” While iGPS has been using the recent

54 PRODUCE BUSINESS • FEBRUARY 2010 pallet industry, IFCO, has directly addressed the situation in a press release. The Houston, TX-based company points out there is no evidence proving the domestic use of wooden pallets is responsi- ble for the spread of plant pests that has APHIS concerned. As such, the company is concerned that “the implementation of the domestic ISPM-15 would increase the cost of all wood pallets shipped within the Unit- ed States at a time when our supply chain can ill afford higher costs,” as stated by Mike Hactman, senior vice president of business development in the aforemen- Photo courtesy of the NWPCA In an effort to curb the spread of non-native invasive plant pests, USDA APHIS is tioned press release. considering stricter regulations for the domestic shipping of wooden pallets. LeRoi Cochran, director of supply chain solutions at IFCO, echoes the company’s USDA APHIS hearings as a publicity spring- yet to become a scientifically proven fact official statement and explains, “One of the board, the company’s direct competitor, that domestic wooden pallets are harbingers justifications of imposing new policies for CHEP, has been relatively quiet. Instead of of bacteria and airborne illnesses or are the shipment of domestic wooden pallets is focusing on what may be in the future, the spreading non-native invasive species,” that it’s an effort to eliminate the current Orlando, FL-based company is concentrat- Smith adds, “I think the important thing to mosaic of regulations. We believe the proper ing all its effort on maintaining excellent look at, specifically, is the way in which our and most effective way to go about that is to customer relations and ensuring its client business operates. We have an inspection educate people and remove the quarantine base is happy. “The question becomes process. The product goes through one of for the products that don’t need to be regu- whether there has been some issue that has our service centers and our team ensures lated. Certainly, the inconsistency from hap that would indicate the situation regard- the pallets meet all specifications, including state to state is a problem, but regulating ing contamination needs to be addressed,” those on cleanliness.” everything is not the solution. Rather, it is to asserts Tim Smith, vice president of busi- Despite the fact that CHEP is not overly limit the regulations. It’s unfortunate that ness development. concerned about the USDA’s recent hear- the politics of the issue has begun to mask “While there is certainly opinion, it has ings, another large player in the wooden the science behind it.” pb 50 8 # # Reader Service Reader Service

FEBRUARY 2010 • PRODUCE BUSINESS 55 Value-Added Potatoes: Challenges & Opportunities While they might be a bit more costly, the value-added potato category represents a convenient and attractive buy for families who are cooking more at home.

BY CAROL BAREUTHER, RD

Potatoes are undoubtedly one of American’s Enter an opportunity for value-added potato favorite vegetables. products. Convenience often takes a back seat to budget concerns during an economic recession, Eighty-eight percent of consumers eat potatoes says Kathleen Triou, USPB’s vice president of in at least one at-home dinner a week, and nearly domestic marketing. “But this doesn’t mean con- half consume potatoes three or more times per sumer’s desire for convenience disappears. At the week, according to a February 13, 2009-released same time, we’re seeing more people eating at Potato Attitude & Usage survey, by Synovate for the home and a degradation of cooking skills among Denver, CO-based U.S. Potato Board (USPB). younger generations.” At the same time, survey results show only 57 Randy Bohaty, produce director for B&R Stores percent of consumers believe they could create fast Inc., a 15-unit chain headquartered in Lincoln, NE, and easy dinner meals around potatoes; only 54 which operates under the Super Saver and Russ’ percent think they could build a meal around pota- Market banners, agrees, “There are consumers who toes in less than 30 minutes; and 48 percent stated are willing to pay for convenience because it repre- potatoes took too long to cook in order to include sents a value for them. For the produce depart- them in most dinner meals. ment, it means an extra ring from consumers who

Due to the current economic climate, there has been a return to large sized bags of potatoes.

56 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 39 weren’t going to buy fresh, whole potatoes and peel them in the first place.” There is no industry definition for what constitutes a value-added potato product, notes Mac Johnson, president and CEO of Category Partners LLC, a joint venture mar- keting organization formed by Idaho Falls, ID-based Wada Farms Marketing Group LLC and Farm Fresh Direct LLC, headquartered in Monte Vista, CO. “But I would say it’s a product with real or perceived value to a consumer expressed in terms of conve- Insiders believe merchandising fresh-cut, value-added potato products in the pro- nience,” he adds. duce department is a smart and prosperous move. Steve Ottum, chief operating officer for Potandon Produce LLC, in Idaho Falls, ID, adds, “I think of it as any product with attributes that differ from the basic com- modity. Look at the history of value-added. First we had just russets, reds, whites and yellows. Over time, specialty potatoes devel- oped. Now we’re seeing products that are more convenient for consumers to prepare. This includes mini-potatoes in smaller pack- ages for smaller households, microwave bak- ers and steamer bags.”

FAST-FIXING POTATO PRODUCTS There’s been a dichotomy in the potato category, says Seth Pemsler, vice president of retail for the Idaho Potato Commission (IPC), in Eagle, ID. “New varieties and value-added were a growth area. Then we had the economic downturn. In the second half of 2009, the biggest growth in category sales were for the least expensive, non- value added item in the category: Bagged russets. In the long term, it is specialty varieties and value-added potatoes that will be the growth engine of the category.” Potato grower/shippers approach inno- vation of value-added products differently: Small Whole Potatoes — Small-sized potatoes are quicker to cook than larger vari- eties, thus offering convenience for cus- tomers, says Dick Thomas, Potandon’s vice president of sales. “Our proprietary mini- potato line is packaged in high-graphic bags that contain usage ideas and recipes. The 24-ounce bags provide enough to feed a fam- ily of four and the smaller bag size is attrac- tive to retail at a lower price point.” The company has also increased produc- tion of the C-size potatoes, thus also lower- ing the cost of the product. Seasoning Packets — There are a few niche potato products that offer added con- 69

# venience, says Kendra Mills, marketing director for the Prince Edward Island Pota- to Board, based in Charlottetown, PEI, Canada, “such as those that contain spices or seasonings.”

Reader Service For example, WP Griffin Inc., located in

58 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 15 Elmsdale, PEI, Canada, offers its Spice It Up fresh-cut refrigerated potato product in the — Herb Fixin’s product in three varieties: 1990s. “The Potato Express line includes sea- Russet, Red and Yellow Flesh. Instructions soned and unseasoned cooked, ready-to- “The microwave on the package direct consumers how to serve diced, sliced and shredded potatoes prepare the finished dish, which is pictured that are ready-to-eat in seven minutes,” says bakers are on the bag, with the enclosed seasoning John McCarthy, Jr., retail trade manager. something we’ve packet in the oven, grill or skillet. One pack- The products sell for an average of $2.49 age provides enough potatoes for a single- each. carried and they family meal. Garth Smallman, sales manag- Mackay & Hughes, in Toronto, Ontario, er, remarks, “This product is targeted at the Canada, introduced pre-peeled whole- and weren’t big sellers... quick and healthy meal market.” cut-potato products a few years ago, says yet when we took Refrigerated Fresh-Cut — Beaverton, president and CEO, Tom Hughes, “But, it OR-based Reser’s Fine Foods Inc. was was a product before its time and we closed them out, customers among the first companies to introduce a the line. We’re seeing a swing back to 10- asked for them.”

— Randy Bohaty B&R Stores Inc.

and 15-pound bags of potatoes instead.” Timothy Hobbs, director of development and grower relations for the Maine Potato Board, headquartered in Presque Isle, ME, says, “We have one fresh-cut company in the state that makes diced and mashed product for foodservice, but not retail.” Sales of refrigerated fresh-cut potatoes at retail — a small slice of the potato category — have taken a hit this year. Volume dropped by 11.6 percent and dollar sales by 9.3 percent for the first 39-weeks of 2009 ending September 26, 2009, according to Perishables Group FreshFacts data. Microwave Bakers — At Rice Epicurean Markets, a 5-store chain based in Houston, TX, Mark Luchak, director of produce and floral, says, “We carry the microwave bakers and they seem to hold their own. Sales are steady year-round.” B&R Store’s Bohaty adds, “The microwave bakers are something we’ve car- ried and they weren’t big sellers; nowhere near the sales of commodity potatoes. Yet, when we took them out, customers asked for them. Because of that, we now offer microwave russets and microwave yams.” Single, microwave-ready baking potatoes represent approximately $600,000 in annual dollar sales, the largest of the value-added potato sub-categories. During the first 39- weeks of 2009, dollar sales were up 8.5 per- cent and volume down 6.5 percent, accord- ing to Perishables Group FreshFacts data. Farm Fresh Direct introduced the first microwave baker in 2000, says Category Partner’s Johnson. “It’s a 6- to 8-ounce rus- set. It has found its niche as a side dish. It’s done well; sales continue to grow and gain distribution. However, it took a real dip last year when the economy tanked. Consumers

60 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 49 realized convenience does increase cost, but Smallman says. there was a limit to what they were willing Steamer Bags & Trays — According to to pay.” Jim Ehrlich, executive director of the Col- “It’s currently a tough market,” says Tom orado Potato Administrative Committee Campbell, co-owner of Tri-Campbell Farms (CPAC), in Monte Vista, CO, “Microwavable LLC, based in Grafton, ND, “but a wrapped steam technology is a good example of how baker, especially our 8-ounce red-skinned advances in packaging technology are open- shrink-wrapped microwavable baker potato, ing the door for innovative value-added does have its niche.” potato products.” WP Griffin offers 80-ct microwaveable Bohaty reports, “We carry the steamer and foil-wrapped russets in single serve and products and they sell, but they’re a small tray packs of three potatoes each. “The foil- segment of the category.” wrapped bakers are popular for the grill,” Potandon Produce began national distri- Photo courtesy of Green Giant

Refrigerated Green Giant Fresh steam-in- the-bag potatoes come in four varieties of red and yellow creamer potatoes.

bution of its refrigerated Green Giant Fresh steam-in-the-bag potatoes last fall. The microwavable, 13-ounce bags contain propri- etary varieties of C-size red and yellow creamer potatoes in four varieties: Mesquite and Bacon, Four Cheese, Three Chili and Roasted Garlic Butter. Each bag, which retails for $2.98, yields three to four side dish servings and cooking time is only four- and-a-half minutes. Thomas explains, “We began test marketing and sampling the product to a targeted audience in January, 2009. It’s too early to conclude who the end customer is, but we’re seeing interest from those who are heavy potato users in general and those looking for value-added products.” Placement within the produce depart- ment was important to get the product noticed, Thomas adds. “In this economy, a greater marketing effort is required to encourage trial and get consumers to pay the extra money for value-added, but it has not stopped sales.” The Wada Farms Marketing Group re- introduced its non-refrigerated, microwav- able, bagged red and yellow potato product last fall with a new name and new size. Category Partner’s Johnson explains, “We introduced the product as Easy Steamers two years ago. It did okay, but it didn’t set the world on fire. Consumer research told us consumers didn’t realize the bag was what made the product value-added. There- 40

# fore, we changed the name and the graph- ics on the bag to read ‘Microwave in Bag!’ 1 We also reduced the package size from 1 ⁄2 pounds to 1 pound and changed the price point to $1.99 or less, rather than $2.50 to

Reader Service $2.99.” He adds, “Tests with the reformulat-

62 PRODUCE BUSINESS • FEBRUARY 2010 Single, microwave bakers represent the largest value-added potato subcategory. ed product indicated that more than 70 per- took one look at the high graphic sleeve and cent of consumers felt the product met or put it in their basket. They instantly saw the exceeded expectations, which bodes well product as something new and exciting as for repeat purchase.” well as easy to prepare.” Wilcox Fresh, in Rexburg, ID, began test Wilcox’s Potato Jazz is a three-item line marketing its non-refrigerated, value-added that features a baby russet mix, a red and potatoes packaged in a microwavable steam- yellow potato combination, and a medley tray in the St. Louis, MO-based chain, Dier- of fingerlings all with a seasoning packet. bergs Markets Inc. in May, 2008. Jim The products cook in the microwave in five Richter, executive vice president of sales minutes and suggested retail price is $3.49 and marketing, says, “The first 25 customers to $3.99. Richter reports, “The fingerlings 45 46 43 # # # Reader Service Reader Service Reader Service

FEBRUARY 2010 • PRODUCE BUSINESS 63 are the most popular so far.” The company To gain trial and sales of value-added began rolling out the product nationally potato products, WP’s Smallwood says, last October. “We’ve done a promotion where we put one These new microwavable/steamer bags foil-wrapped russet in a 5-pound poly bag of potatoes seem to be catching on with con- and signed it, ‘Get a free barbecue potato.’ It sumers. Dollar sales of this sub-category familiarizes consumers with the product.” were up 29.5 percent and volume 22.7 per- Tri-Campbell’s Campbell says, “Chains cent for the first 39-weeks of 2009 ending do real well when they merchandise our September 26, 2009, according to Perish- Red Micro Baker for 69- to 79-cents a-piece ables Group FreshFacts data. or promote them 2-for-$1.” The USPB’s Triou comments, “Steamer Cross-promote fresh-cut potatoes with a bags are new and they’re on a growth bagged salad, which has more visibility, rec- trend as that ‘something new’ factor ommends Reser’s McCarthy. “Create trial by appeals to consumers. However, they are offering a cents-off coupon on the potatoes a small part of the overall potato catego- at the same time.” "Creole Classic" • "Creole Delight" ry, behind microwave bakers and fresh- For the new microwave/steamer potato "Big Creole Jumbo" cut refrigerated.” products, Wilcox’s Richter suggests, “Offer a 40 lb. Cartons, 3, 5 & 10 lb. Consumer Packs On the horizon, the USPB has conducted buy-one-get-one introductory offer, or offer Plus Bulk Bins innovative work on a number of new value- a bundle combo that adds even more value, added potato products. According to Triou, such as a meal deal of an entrée or chicken 337-824-6328 two ideas that have carried the most trac- with the potatoes.” Packing Shed tion with consumers are baby red potatoes As for display, Ehrlich admits, “Where to FAX 337-824-2676 ★★★★

with a rosemary herb sauce ready for the put the value-added potatoes has always # 53 Wayne Garber, Michael Garber grill — an idea that has come to the market been a problem, especially those products Matt Garber & Hayes Pousson as Green Giant Fresh Patio Grillers — and that require refrigeration.” “America's Finest Yams” & “Aromatic Rice” russet potatoes with seasonings marketed in McCarthy agrees and says, “Depending 3405 Des Cannes Hwy., Iota, LA 70543 a steamer bowl for quick-preparation on the retailer, our product is found in up to Reader Service mashed potatoes. four different locations in the store: Pro- duce, meat, dairy and deli. It’s all based on OVERCOME PRICE & what the potatoes are used for. For example, DISPLAY CHALLENGES the fresh-cut hashed browns are merchan- The two biggest hurdles in introducing dised next to the eggs.” and successfully selling a value-added pota- Sales success is best for refrigerated to product are price and the optimal display steamer bag potatoes, says Potandon’s location. The USPB’s Triou says, “The econ- Thomas, “when displayed either next to the Grower, Packer and Shipper omy has driven potato sales over the last bagged salads or next to the cooking vegeta- of Sweet Potatoes year. Consumers have shopped with their bles in produce or in the meat department Label Names: “Suzy’s Supreme” wallet and a decreased budget in mind. This next to roasts.” means buying on ad and searching out the To gain a sizable shelf presence, “Little Mike” “Wood Farms” best price per pound, for example, a 5- and Thomas adds, “Bring in the whole line, all “Big Daddy’s Jumbos” 10-pound bag of russets.” four flavors, so consumers have choices Benson, North Carolina # 70 Russets represented 66 percent of vol- and because only one SKU will get lost on Phone: 919-894-2318 ume, up 12.7 percent and 55 percent of dol- the shelf.” Fax: 919-894-6195 lar sales, up 2.6 percent, during the first 39- For non-refrigerated value-added pota- Email: [email protected]

weeks of 2009, according to Perishables toes, Campbell points out, “Traditionally, Reader Service Group FreshFacts data. the microwave bakers have been displayed A per-pound comparison makes it diffi- in the potato section next to the bulk display cult for some consumers to justify the pur- as another option.” ATTENTION chase of a value-added product, contends “Non-refrigerated, microwavable steamer ALL BUYERS IPC’s Pemsler. “Consider that an 8-ounce bags are best displayed ribboned between microwave baker retails for about 99-cents bulk, baking russets and sweet potatoes, or USE and a 5-pound bag of russets sells, on aver- as a color break between bagged product,” age, for $1.99. Do the math. That’s $2 per- advises Richter. “Remember, there are two pound for convenience versus 40-cents per- different purchasers — two different intents pound for the commodity.” Yet, Pemsler — for value-added versus commodity prod- directories when you are ready to buy. adds, “In the future, when the economy ucts. Therefore, these products complement For additional copies of this improves, I think we’ll find consumers have one another rather than compete.” directory or any other, please call a short memory and pent up demand.” “The real key,” says Category Partner’s CPAC’s Ehrlich agrees: “Right now, Johnson, “is to make sure the consumer is 561-994-1118 there’s some resistance to price, but value- aware of the product. Secondary displays added potatoes are still a good value when are the way to do this. This means end-cap and ask for compared to other value-added products in displays, small bins or shippers with ade- Directory Sales Department the produce department.” quate space and signage.” pb Email: [email protected]

64 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service #54 Reader Service #76

N&W FARMS Grower & Shipper of Sweet Potatoes Year-Round

Larry Nelson & Randle Wright 662-682-7961 Fax: 662-682-7998 www.nandwfarms.com Vardaman, MS 38879 Reader Service #75 Reader Service #44

FEBRUARY 2010 • PRODUCE BUSINESS 65 TORONTO MARKET PROFILE TORONTO TURNS IT ON

WITH A STEADY STREAM OF BUSINESS,TORONTO’S ONTARIO FOOD TERMINAL TAKES ADVANTAGE OF AN ETHNICALLY DIVERSE CONSUMER BASE AND PROVES IT’S HERE FOR THE LONG HAUL. By Dee-Dee Black

t’s 8:00 am and Joe Scali, a partner in Royal Produce, has almost saler and he’ll tell you: The food terminal provides produce not only finished his rounds at the Ontario Food Terminal. Scali likes to for the greater Toronto area and Southern Ontario, but also beyond walk the market every morning, to taste and touch the fruit and — in some cases as far away as Newfoundland and Nova Scotia. I vegetables he buys for his clients. He strides along the horse- “We’re a necessary part of the whole equation,” says Richard Rose, shoe-shaped market with confidence, stopping to chat with the vice president of Gambles Ontario Produce Inc. The Ontario Food wholesalers and their staff as he does business. Terminal is useful for consumers because it’s the only outlet for inde- All around him electronic forklifts loaded up with boxes of straw- pendent retailers to get product. “The independent is growing in berries, guava, spinach and lettuce race along the loading dock. strength here,” Rose asserts. “You can feel it on the floor.” Inside the stalls are boxes of every kind of fruit and vegetable imagin- Millions of dollars and pounds of produce go through the food able. Outside, flowers and boxes of produce sit waiting to be loaded terminal every day, reports Peter Streef, one of the owners of Streef onto trucks from the city’s independent green grocers, some chains Produce Ltd., a company that not only sells produce, but also grows and the city’s restaurants. some of its own on a southern Ontario farm, in addition to managing There is a constant buzz — a kind of electricity that sweeps across the produce of some 20 other farmers. “It’s a very important compo- the floor of the market. Scali, who grew up in Toronto’s Little Italy nent in horticultural production in Ontario. It gives us an opportunity and has a self-confessed passion for produce, loves the adrenalin rush to access a market and display our products,” he explains. of making a deal, finding the most perfect strawberry or head of let- Adds Sal Sarraino, CEO of Fresh Taste, one of the larger North tuce. “On a busy morning this market can get really exciting and very American importers who also has a wholesale unit on the terminal frenetic, raising the blood pressure and the adrenaline,” he says. floor: “The food terminal is an important facility and I think more peo- What can be critical in making or breaking a deal over produce is ple should use it to see what it can offer. If I were in the retail business the personal relationship Scali has with wholesalers. “We try to get myself, I’d love to be able to walk around and see who really has the information before we actually buy the product,” he explains. “If broc- best quality and pricing on a daily basis. I think that’s very important.” coli is going to be short on the weekend or if there is a particular kind Coming to the market is like going to the mall, compares Joe Da of grapefruit that’s good...then we go about hand-selecting produce.” Silva, vice president and director of market operations for Ippolito Fruit & Produce Ltd., which is not only a wholesaler, but also process- REACHING FAR AND WIDE es and packages produce. “You get to pick and choose,” he says, and The Ontario Food Terminal, a provincial government facility locat- that’s critical for any retailer, be it a Mom-and-Pop green grocer or a ed in Toronto, is Canada’s largest wholesale fruit and vegetable distri- large retailer. “This market has been a buyer’s market for the past 20 bution center and ranks in the Top Five by volume in North America. years,” he adds, but in the end it’s relationships that can make or About five million pounds of fruit and vegetables go through the mar- break a company. “It’s the most important thing in the produce busi- ket daily. With 21 wholesale stalls possessing a total of 80,000 square ness because you can only fool a guy once — three times tops, then feet of cold storage, as well as a farmer’s market that boasts more he doesn’t trust you.” than 500 stalls, the Ontario Food Terminal sits on a 40-acre site, west Da Silva knows only too well the ups and downs of the produce of the downtown core. Opened in 1954, the terminal has become a market. He grew up on a farm in San Miguel, Azores in Portugal and critical link in the country’s food network and plays an important he learned the business at his father’s knees. When he came to role in boosting the province’s economy. Canada, working in the produce business was a natural fit. His After all, as Anthony Pitoscia, a buyer from Fresh Advance- story is similar to many along the stalls of the food terminal — ments Inc. sees it: “I look at food as one of the most important many who also grew up in the produce business or learned it from things you can put in your body. It’s your fuel. It’s your gas.” family members on either a farm or sweeping the terminal floor. The importance of the food terminal is palpable. Ask any whole- Such was the case with Rick Carnevale, who works with his father,

66 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 58 TORONTO MARKET PROFILE from university, but by then, the pro- duce business was in his blood. Now, he’s vice president of the company. “I think in an entire

Joe Da Silva, Jim Gordon, Joey Carnevale, Thorncrest IGA and Joe Scali, day, we do more Ippolito Produce Ltd. Ippolito Produce Ltd. Rick Carnevale, Veg-Pak Produce Ltd. Royal Produce than the average person does in a sister and brother at Veg-Pak Produce Ltd. He Terminal. He started unloading trucks, sweep- week,” he says. has been working at the company in some ing the floor, doing deliveries and answering capacity or another since he was 15. Now 34, phones. As a young man, he had thought CHANGE THROUGH he has spent half his life at the Ontario Food about going to law school when he graduated CULTURAL DIVERSITY But times are changing on the floor of the market, fueled by the cultural diversity of the region. The massive immigration to Canada from Southeast Asia, China, the Caribbean and other parts of the world have meant a demand for new and different vegetables from those sold when the market first opened. Thus, companies such as Ippolito have hired buyers who specialize in the East Indian market. Kudlip Sandher, who came to Canada from India when he was 14 and speaks both Hindi and Punjabi, is a fine example. As a sales associate, his mission is to attract more South Asian customers to his company by bringing in fresh products such as okra and cilantro. So far, he says, his attempts to tap into this market have been good. It’s a grow- ing market and all the wholesalers are clam- oring to get a piece of it. Adds Carnevale: “At this point in time, it is very Asian-influenced.” As a result, Veg-Pak is stocking items Carnevale admits he didn’t even know existed — Indian and Chinese eggplant, cooking papaya and curilla, a kind of bitter melon very popular in Caribbean dishes. “It’s a very diverse market,” agrees Chris Streef, who works alongside his uncles at Streef Produce as a sales and logistics manag- er. “Toronto itself, being as diverse as it is, has a lot of opportunities for a lot of different items. Different markets cater to different commodities.” He points to bi-color corn as an example. “We sell bi-color corn by the tray loads here,” he reports. “In the States, they have a hard time selling it. They eat yellow corn there. Bring a load of yellow corn here and you won’t sell it.” Adds Gambles’ Rose, “Ethnic produce is not strange to Ontario. There is a more open- minded market here. We’re more accepting of certain things because of our ethnic diversity.” For Teddy Kurtz, a buyer at Stronach & Sons Inc., what’s key to the Ontario Food Ter- minal is knowing your customers. Kurtz, who

21 started in the business in 1966 when his father- # in-law brought him in, operates what he describes as “probably the smallest house on the market.” But he proudly adds: “We’re small, but effective.” Kurtz agrees the clientele at the Ontario Food Terminal has changed sub-

Reader Service stantially over the years, which is why it’s criti-

68 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 16 TORONTO MARKET PROFILE cal to “cater to the needs of your clientele.” — compared to other parts of the world — goods in the store.” The wholesaler specializes in vegetables and hothouse and greenhouse products are a vital Being inside the terminal gives Koornneef some pears, apples and cherries, deals with part of the produce business, as they extend the ability to import produce from all over the independent grocers from all over Ontario. the season. Greenhouse vegetables had been world, and he’s taking advantage of that fact, “We’re shipping today to the East coast of the specialty of Koornneef Produce Ltd., but buying Spanish peppers, Belgian tomatoes Canada, Newfoundland and Nova Scotia. In now, for the first time, the company has a and pears from Washington. But he acknowl- the summer, from June to October, 85 percent stall inside the wholesale terminal, adding a edges it can be tough. Ontario is the most of our produce is Ontario-grown. The rest of whole new dimension to the business. “The competitive market place in North America the time, its imported from California, Mexico, food market is very important to Ontario,” when it comes to produce, he remarks. “You Texas, Florida and Georgia,” he details. asserts president Fred Koornneef, who sells to can’t get away with high prices in Toronto such retailers as Longos, a small, Toronto- because there’s so much competition.” MARKET ADVANTAGES based grocery chain. “It’s a hub. Without the What works for him is consistency. Koorn- Due to Ontario’s shorter growing season market, I don’t think you’d see the quality of neef has been in the business for 25 years — and buyers depend on the consistency of his produce. “It’s a simple philosophy. You treat people how you would like to be treated. It’s word of mouth on the market, buyers tell each other.” Indeed, being a grower as well gives Streef Produce an advantage both with other farmers and chain stores, notes Chris Streef. He maintains growers trust the company because the people there don’t just under- stand farming; they are farmers. Chain stores like to deal with the company because it is a grower as well.

“I think the market is important because you have Mom-and-Pop gro- cery stores that are not large enough to buy directly themselves. In a major city, you need a vibrant food produce market.”

— Barry Green, Richard E. Ryan & Associates Ltd.

The variety of food available in Canada is the envy of the world, says Vic Carnevale, president of Veg-Pak Produce Ltd. Carnevale was born into the produce business in Italy and has spent his life among fruits and veg- etables. Carnevale remains certain about the

27 future of the produce industry as independent # ethnic stores continue to open up across southern Ontario. He believes this trend will only continue to grow, fueling sales at the Ontario Food Terminal along the way. “The wholesale market will never, never disap-

Reader Service pear,” he declares. “Sales are higher than they

70 PRODUCE BUSINESS • FEBRUARY 2010 Ippolito has been servicing the Toronto wholesale and retail markets for over 60 years. Ippolito Produce Ltd. sells a wide range of vegetables, fruits and specialty items to a diverse group of customers including small, mid size, and chain retailers, secondary wholesalers, jobbers and institutional buyers from a 5300 sq. ft. facility on the Ontario Food Terminal. Ippolito has earned a reputation as a fair and ethical trader and a destination shop for commodities such as spinach, lettuce, garlic, onions and ethnic greens. Ippolito employs world class cold chain processes and technologies to ensure optimal freshness and shelf life to their customers.

Reader Service # 72 TORONTO MARKET PROFILE

Wayne MacKinnon, Kuldip Sandher, Ted Kurtz and Danny Simone, Lorie Goldfarb, Dorjee Namgyl, Gambles Ontario Produce Ltd. Ippolito Produce Ltd. Stronach & Sons Inc. Morris Brown & Sons Veg-Pak Produce Ltd.

Richard Rose, Vic Carnevale, Steven and Barry Green, Peter Streef, Anthony Pitoscia, Gambles Ontario Produce Veg-Pak Produce Ltd. Richard E. Ryan & Associates Inc. Streef Produce Ltd. Fresh Advancements /Bamford Produce have ever been.” and that’s what makes the produce so bounti- unloading trucks. Christian went to the Uni- For Barry Green, president of Richard E. ful and ample. “I think the market is important versity of Western Ontario where he studied Ryan and Associates Ltd., a food broker, it’s because you have Mom-and-Pop grocery geography, but the lure of the food terminal critical to be at the market to see the produce stores that are not large enough to buy directly kept beckoning. “I always knew I would as it comes in. “You can get the feel of the themselves. In a major city, you need a vibrant come into the produce industry; it’s what I market. You can see what’s good, new trends, food produce market.” wanted to do,” says Christian, who works as a new products,” Green explains. In partnership Adds Fresh Taste’s buyer and sales manag- buyer and sales manager at Fresh Taste’s with his brother, Steven, the pair sells produce er, Christian Sarraino: “Every day is game Canadian wholesale division. “I’m fortunate to to wholesalers. By being on the scene they day.” Sarraino has followed his older brother, be able to learn from my father and my can look their customers in the eye and make Julian, into his father’s business at Fresh Taste. grandfather; I’ve found that they are very a deal. “We’re a world market,” says Green. Both young men started in the business when influential people in this industry.” “There’s very little hindrance to trade here,” they were young, sweeping floors and The produce business is a far cry from the 52 25 # # Reader Service Reader Service

72 PRODUCE BUSINESS • FEBRUARY 2010 TORONTO MARKET PROFILE

Marta Kozak, Julita Jaracz, Randy Steinberg and Ashley Carr, Joey Longo, Longo’s, and Julian, Sal and Christian Sarraino, Torizon Logistics Inc. Fred Koornneef, Koornneef Produce Ltd. Fresh Taste Produce Ltd. Canada

career paths that many of Christian’s college important. “It gives buyers the opportunity to known for its quality. “At Fresh Taste, we buddies pursued, but he wouldn’t have it any exercise all of their options based on price pride ourselves on longstanding relationships other way. “I find it interesting when I tell and quality they can actually see,” he says. As with our growing partners, shippers and cus- people from other industries what I do. A lot for the job itself, he loves it. “My brother and tomers,” he adds. “This is an important phi- of my friends from university have become I are competitive people. As a result, we’re losophy — one that we are dedicated to bankers, accountants and lawyers,” he constantly striving to find new ways to pass continuing.” explains. “I say I’m in produce and they get our savings along to our customers, and in this puzzled look on their face.” turn, the end consumer.” LOGISTICS Christian knows wholesale markets are Christian asserts his family’s company is Getting the produce to and from the Ontario Food Terminal can be a real chal- lenge. The weekend before Thanksgiving, many of the wholesalers were having logisti- cal problems, as many of the trucks coming THE NEXT GENERATION TAKES THE LEAD from the United States were in short supply due to the holiday. However, some compa- wo of the Ontario Food Ter- in today’s society, and I am com- nies have come up with their own solution to minal’s youngest wholesalers mitted to contributing to these the problem. For example, Gambles has T have been elected to the campaigns,” Sarraino remarks. solved the problem by setting up a sister Ontario Produce Marketing Associ- Currently, the OPMA promotes company, Torizon Logistics Inc., with Randy ation’s (OPMA) Board of Directors. the consumption of all vegetables Steinberg, who has experience in logistics and Julian Sarraino, 24, buyer and and fruit from around the world. transportation. Steinberg brings in Gambles’ sales manager with Fresh Taste But Streef would like to see that Julian Saraino produce from California, Florida and Texas. Produce Ltd. Canada and Chris Fresh Taste Produce Ltd. evolve, focusing a bit more on “Transportation is the forgotten role,” Streef, 27, sales and logistics man- locally grown produce. By pro- admits Steinberg, president of Torizon. “Typi- ager with Streef Produce Ltd, are moting local produce, Streef cally, truck drivers have unbelievable both newly elected to the board. believes it not only helps the local demands on them. They have to get all the The Ontario Produce Marketing growers and the local economy, freight from multiple pick-ups and regardless Association is a non-profit organi- but also consumers. of when they leave California, they have to be zation designed to promote the Sarraino would also like to sit here on the fourth morning.” The decision to consumption of fresh fruit and veg- on the Canadian Produce Mar- move into transportation was a good one for etables within the province. Chris Streef keting Association board so he Gambles. “It’s another revenue stream for Both are very excited about the Streef Produce Ltd. can expand his knowledge about them,” says Steinberg. challenge of sitting on the board the industry. “I’m honored to be a As for the future of the produce industry, and hope to make a real difference. “The part of the OPMA Board of Directors,” which Veg-Pak’s Rick Carnevale worries that the biggest thing for me in joining the OPMA acts as a representative for the Ontario Pro- push from chains to lower the price will board is that I get to learn from my peers,” duce Industry. “We work to encourage coop- have a negative effect on the quality of pro- says Sarraino. Sarraino believes he can eration between all sectors of the industry, duce. “I have found in the last few years, the learn by watching the rest of the board from the growers to the consumers, while chain stores have been really pushing the members and their decision-making skills, striving to develop and apply programs and price issues,” he says. “There is a lot of com- their reasoning and their rationale, which is policies for the benefit of the horticultural petition in the chain stores to be the cheap- all for the benefit of the entire industry. sector in Ontario.” est, and unfortunately, when that happens One of the tasks facing the OPMA is the Sarraino and his brother, Christian, are now quality seems to suffer. I’d love the industry introduction of a new campaign later this both working with their father and grandfather to go back to when quality was the No. 1 year to promote eating fresh fruit and veg- at Fresh Taste. Like Christian, he started work- necessity.” etables daily. Both Streef and Sarraino are ing in the business when he was young, But in the meantime, he and other whole- solidly behind the campaign. Eating fresh sweeping floors and unloading trucks. After salers are doing their best to provide fresh fruits and vegetables is not only good for graduating from university, he, too decided to and delicious produce for southern Ontario consumers’ health, they point out, but also join the family business last year. “I learned and the greater Toronto area. From Royal Pro- the bottom line for the produce industry. from the ground up,” he says. Just like his duce’s Scali point of view, they seem to be “Promoting the consumption of fresh fruits father and grandfather before him, he has a keeping up their end of the bargain. “Every and vegetables is certainly an important role passion for produce. pb house does a phenomenal job,” he says. pb

FEBRUARY 2010 • PRODUCE BUSINESS 73 TORONTO REAIL PROFILE MAKE WAY FOR McEWAN

RELYING HEAVILY ON HIS BACKGROUND AS A CHEF,MARK McEWAN BRINGS A EUROPEAN-STYLE GREEN GROCER TO TORONTO. By Dee-Dee Black

or chef, and now grocer, Mark McE- produce manager, Fabio Cannone, who grew wan, success is in the details. As he up in Toronto’s Little Italy above a green gro- stands looking around his gourmet cer. “I have a passion for the business,” he F store, he is every inch the proud admits sheepishly, something he got when he green grocer, much like his mother’s was a young boy. As he tours the produce parents who operated the only store in small department, he looks to make sure everything town Ontario. is in top shape. “I’ve always loved food retail,” says McE- “I try to bring something different each wan, who is also known for his hot restau- week. Last week I had the Buddha’s Hand rants North 44, One and Bymark. “I love mar- here,” says Cannone. “It looks like 20 fingers kets. I love European grocery stores. My com- spread out. And it’s lemon in color. When you plaint about North American grocery stores is break the ‘fingers’ off, it smells like lemon.” there is not enough fresh product. Why can’t Great care is taken to bring only the very Needless to say, McEwan notes his we have a 20,000-square-foot store that had best produce to the store from Ontario’s Food gourmet grocery store has become a destina- everything from soups to nuts, but leaning Terminal. The company uses the Toronto- tion shopping spot in the Don Mills Centre, more to the fresh side.” based Royal Produce to pick its fruit and veg- rivaling some of Toronto’s more established And so McEwan — the gourmet grocery etables. Every morning, Joe Scali, one of the specialty grocery stores. He has plans to open store — was born, opening its doors in June, co-owners in the firm, walks the market look- up an old-style Italian restaurant called Fabrica 2009, in a recently redesigned mall in Toron- ing for the best produce for the store, as well in the same shopping center and he also is to’s north end. Some criticized his decision to as his restaurants. “What’s great about Mark drawing up plans to open a second McEwan set up shop far away from the downtown and Fabio is that they’ve given us the freedom grocery store in downtown Toronto. core, but McEwan believes he knows his mar- “I’m pretty intuitive when it comes to peo- ket. What’s more, the grocery store serves as a ple and what they need when they are cook- supplier for all of his restaurants. An added ing at home,” he admits. “I’ve been in the financial bonus, he chuckles. business a long time. I always imagine it It is clear from walking around the store through the eyes of my customers — the peo- that great care has been taken to create a ple who walk the store. We are drawing all shopping experience that is equivalent to our products from top echelon producers. I that of dining at a fine restaurant. Staff is on just don’t want to fill the store; I want to fill hand to answer questions and to talk to cus- the store really competently.” That’s what tomers about produce. The aisles are wide makes the store different, McEwan believes, with plenty of room for customers to stop, from other gourmet food emporiums across look and sample wares that are finely cut the Toronto region. and out on display. As for the latest food trend to eat and buy “I’ve always been comfortable with food local, McEwan is philosophical about it, try- and always have enjoyed it,” asserts McEwan. ing to incorporate what he can into both his “What I bring to the retail food industry is the Produce manager, Fabio Cannone store and restaurant. “I’m totally there for the chef’s side of it. I bring the ability to have (left), with Mark McEwan. local farmer,” he says. But he’s not fanatical cooks in the kitchen and prepare and manage about it. For him, quality is the biggest issue food correctly on a daily basis. This has been to walk the market,” praises Scali. “They say, and if need be, he’ll shop the world to find one of the key factors that have been missing ‘We need romaine, strawberries and lettuce, it. “I believe in having variety for my con- from traditional groceries. They try to do pre- but what they’re telling us is if the romaine sumers whether they are here in the store, or pared foods, but they don’t know how to looks good, buy the romaine; if the lettuce the restaurant.” manage the costs or production.” looks good, buy the lettuce and if they don’t, Out on the floor there is no detail too don’t buy them.” McEwan small for McEwan. Each piece of fruit is laid McEwan’s grocery store is all about offer- The Shops at Don Mills out carefully; each vegetable looks like it ing customers a unique grocery experience. 38 Karl Fraser Road belongs in a gourmet magazine. The quality Service is supreme in his mind, and he has Toronto, Ontario, Canada, M3C 0H7 of produce is important to McEwan. “We brought in employees that know their busi- 416-444-6262 rotate our product every day,” he reports. ness. He also has a 16-member kitchen team www.mcewanfoods.com “We only cut the precise amount of water- charged with all of the store’s prepared foods, melon we think we’re going to use for the dishing up treats such as truffled mac and Hours of Operation: next four hours. Then, when we run out of cheese. Much of the staff from his restaurants Monday-Wednesday: 8:30am to 8:00pm that, we cut more.” is now working the grocery store, serving the Thursday & Friday: 8:30am to 9:00 pm To make sure the produce department is customers just the way they would serve din- Saturday: 8:30am to 8:00pm extraordinary McEwan relies heavily on his ers, he explains. Sunday: 9:00am to 6:00pm

74 PRODUCE BUSINESS • FEBRUARY 2010 M E R C H Merchandising Asparagus A N D I Year-Round S I Many consumers are still learning asparagus is a “seasonless” item. N G BY JACQUELINE ROSS LIEBERMAN R E lthough most American aspara- This type of reliability provides retailers V gus is harvested during the tra- with a meal solution for their customers.” I ditional spring season, the According to Chris Martin, PAIA West notion of buying asparagus at coast co-chairman and president of Gourmet E any time of the year should not Trading Co., based in Los Angeles, CA, W Abe new to consumers. “Because of Peru, “Retailers are looking at methods and com- asparagus has been available year-round for modities that will provide consistent avail- 10 years,” says Steve DeGuire, sales manag- ability of products containing dependable er for Holt, CA-based Victoria Island Farms, quality, health benefits and value for their growers, packers and shippers of asparagus consumers, and asparagus is that commodi- and blueberries. ty. The Peruvian season complements the Still, asparagus may not always be on supply of domestically grown fresh aspara- shopping lists, which is why retailers must gus, allowing for stores to offer customers a remind consumers that the vegetable is year-round product.” good, fresh and affordable year-round. De But to get consumers to think about Moulas Super Markets Inc., based in Tewks- asparagus year-round, “Retailers need to pro- bury, MA, does just that. “We try to promote mote it throughout the year,” admits Cruz asparagus as much as possible, as it is now a Carrera, retail sales manager for Oxnard, year-round item and every country of origin CA-based Mission Produce Inc. has periods of good volume to promote,” That a vegetable is available when it was explains Gary Arsenault, buyer. traditionally absent is an easy concept for The constant availability of asparagus Americans to grasp. “The notion of seasonal- gives retailers ample opportunities to keep ity has been lost for the most part, so retail- sales steady. “The year-round availability of ers simply having a fresh, appealing display asparagus supports category management encourages purchases,” argues Julia Ine- programs designed to build the category not stroza, marketing and merchandising man- Because asparagus is available year- only during spring and peak holiday peri- ager for Gourmet Trading Co. round, aggresive pricing is key to sales. ods, but throughout the year,” says Priscilla Lleras, coordinator for the Peruvian Aspara- THE BEST DISPLAYS “Consumers often have a personal prefer- gus Importer’s Association (PAIA). Strategically displaying asparagus to ence regarding the size of asparagus they As a result, “Retailers and consumers ensure consumers see it will increase sales, use in a particular recipe, etc., so offering benefit from asparagus availability,” notes according to Martin. “Fresh asparagus is multiple sizes gives them options. For exam- John-Campbell Barmmer, PAIA East coast available in white, purple and green, in tips ple, the consumer may wish to use thin co-chairman and director of marketing for and as whole spears. Merchandising white sizes for salads, large for side dishes and Miami, FL-based Chestnut Hill Farms, grow- and purple asparagus next to green offers jumbos for grilling.” ers, packers, importers and distributors of the consumer more choices as well as pro- Displays themselves often benefit from produce from Latin America. “U.S. domestic viding a contrasting and attractive display.” placement near other high-end, similarly product usually peaks in the spring and In addition, “We recommend retailers priced vegetables, suggests Inestroza. early summer months. Product from Peru is offer consumers at least two different sizes “Larger, free-standing gondola displays available starting in June, peaking in Octo- of asparagus,” says Cherie Watte Angulo, always draw attention and increase sales ber through December and imported in executive director of the El Centro-based anytime of year,” adds Victoria Island lower volumes by January and February. California Asparagus Commission (CAC). Farms’ DeGuire.

FEBRUARY 2010 • PRODUCE BUSINESS 75 M “Large display tables of different prod- moving through the system.” E uct forms — whole spear bunches, In display areas that do not include refrig- microwave tray-packed trimmed spears, eration and higher humidity, “Proper rota- “We recommend R packaged and bunched asparagus tips and tion is vital once displayed,” says Carrera. C white asparagus — will increase sales and Use caution when it comes to displaying retailers offer H add profits to the produce department,” asparagus near other produce. “Asparagus is suggests Lleras of the PAIA. ethylene- and odor-sensitive. It will absorb consumers at least A Bruce Dowhan, general manager of odors produced by garlic, onions or any two different sizes N Escondido, CA-based Giumarra Agricom strong-flavored item,” warns Dowhan. International LLC, distributors of produce D of asparagus. D from around the world, notes, “Packaged CROSS MERCHANDISING I asparagus should be displayed with other OPPORTUNITIES Consumers often S packaged produce.” Cross merchandising can add more ring Care and handling of asparagus is as to asparagus sales. “Cross merchandising is a have a personal I important as the displays themselves, as great opportunity for asparagus and its part- preference N asparagus is more perishable and delicate ners,” asserts Angulo of the CAC. “Salad than some other produce items. “Asparagus dressings, mayonnaise, packaged Hol- G regarding the size bundles are best displayed standing upright landaise sauces, lemons, condiments, eggs, 1 in ⁄2-inch of fresh water or on a moist pad to olive oil etc., all work well. Also consider of asparagus they R keep it fresh and well hydrated,” says dairy products such as butter, cheese and Dowhan. sour cream. Each of these items pair nicely use in a particular E “Some retailers merchandise upright with asparagus and many recipes including recipe, etc., so V asparagus in trays with frequently replen- asparagus involve these basic ingredients.” ished ice to keep them fresh,” adds Angulo. At De Moulas, “We like to cross merchan- I offering multiple It’s important to keep asparagus hydrated dise fresh lemons, lemon juice or Hol- E by standing it in water. “That way, it keeps landaise sauce with asparagus,” says Arse- sizes gives them W its snap, maintaining its freshness and shelf nault. “Most of our stores have refrigerated life,” says Mission’s Carrera. cases in prime locations within our produce options. “ However, warns Inestroza, “Tempting as departments where we can promote differ- it may be, retailers should not place the ent items and we try to use these as much — Cherie Watte Angulo spears under a mister.” as possible for asparagus.” California Asparagus Temperature is important, too. “In order During warmer months, DeGuire of Vic- Commission to maintain its freshness and not compro- toria Island Farms recommends displaying mise the integrity of the asparagus, storing asparagus with barbecue and grilling equip- at 35 to 37 degrees Fahrenheit prior to dis- ment, as well. playing is ideal,” recommends Carrera. “Fresh asparagus has numerous cross- gus can be placed in the meat department Dowhan adds, “Asparagus has a high res- merchandising opportunities such as with with steaks for grilling.” piration rate, so it needs steady tempera- salad, oils and dressings, with deli prod- “Offering asparagus in bagged, value- tures and high humidity.” ucts like ham, cheese and wines, and dur- added forms encourages cross-merchandis- When possible, displaying asparagus in a ing the summer, barbecue meats and fish,” ing with packaged salads,” says Martin of the refrigerated case is preferable. “By keeping adds Barmmer of the PAIA and Chestnut PAIA and Gourmet Trading Company. the product refrigerated, we are able to pro- Hill Farms. “Fresh and packaged asparagus can also be long the shelf life and keep it as fresh as Cross merchandising can take place in cross merchandised in the meat depart- possible,” says Arsenault of De Moulas. “We other areas of the store, as well. “Experi- ment, for example with steaks, to provide also instruct our managers not to overcrowd ment by adding secondary displays outside the perfect, complete meal for customers.” the product and replenish the displays the produce department,” suggests Dowhan “Asparagus can be served raw as part of throughout the day, keeping the product of Giumarra Agricom. “For example, aspara- a fresh vegetable platter,” notes Dowhan. “Display it with other items such as toma- toes, broccoli and healthy dipping sauces, such as low-fat Ranch dressing. Asparagus can also be cooked with olive oil or but- ter, and it can be grilled with cheese, such as Parmesan.”

SIGNAGE SELLS MORE The right signage can encourage sales. “Effective signage is extremely important and should stress suggestive usage ideas as well as the many nutritional benefits of fresh asparagus,” says Barmmer. “Signage should recommend serving ideas depend- ing upon the time of the year, such as ‘great for baking,’ ‘easy-to-barbecue’ and

76 PRODUCE BUSINESS • FEBRUARY 2010 ‘microwaveable.’” opt for another vegetable. So moderate pric- Holidays throughout the year are perfect ing may result in a faster turn-around of times for promotion, Dowhan points out, “Large display inventory and higher season-end profit.” including Thanksgiving, Christmas, Easter, Many suppliers agree that when price-per- Passover, Cinco de Mayo, Mother’s Day and tables of different pound rises over $2.99, consumers are less Memorial Day. “Use signage to educate con- product forms — likely to buy. sumers about recipe ideas. Asparagus can “Moderate pricing will also help maintain be used year-round and especially in hot whole spear a fair and reasonable price to the producer,” recipes during fall and winter,” he says. adds Angulo. “Asparagus acreage in Califor- Mission’s Carrera recommends “signage bunches, microwave nia has declined steadily over the last on the health benefits or nutritional bene- tray-packed trimmed decade because of increased cost of produc- fits, a recipe and even the country of origin. tion that was not being matched by the price Some supermarkets like to promote local spears, packaged growers received for their product. To main- asparagus,” he says. and bunched tain a healthy asparagus industry in the “Asparagus is a good source of potassi- United States, retailers must be willing to um, vitamin A and vitamin C,” notes Lleras asparagus tips and offer shoppers and growers reasonable of the PAIA. “Asparagus is low in fat and white asparagus — prices for the product.” contains no cholesterol. Asparagus is also De Moulas has seen success with com- rich in rutin and folacin, which has been will increase sales petitive pricing. “We always price our proven important in the duplication of cells asparagus as aggressively as possible, both for growth and repair of the body.” and add profits to on promotion and at regular retail,” empha- Another key to good sales is fair pricing. the produce sizes Arsenault. “By working close on our “Year-round availability of asparagus has margins, we can move more product with minimized huge fluctuations in price,” says department.” an aggressive retail. That, in addition to top the CAC’s Angulo. “Asparagus is in the mar- quality product and good displays, is the ket 12 months out of the year and the con- — Priscilla Lleras key to selling more asparagus. It is our phi- sumer is now accustomed to seeing aspara- Peruvian Asparagus losophy we use throughout the produce gus at a moderate price point. We find Importer’s Association department — actually, throughout the asparagus is a fairly price-elastic food item, entire store — and we believe it is one of so if it is priced too high, consumers may the keys to our success.” pb 55 # Reader Service

FEBRUARY 2010 • PRODUCE BUSINESS 77 Reader Service #64 Reader Service #84

ATTENTION ALL BUYERS USE

directories when you are ready to buy. For additional copies of this directory or any other, please call 561-994-1118 and ask for Directory Sales Department Email: [email protected] Reader Service #60

78 PRODUCE BUSINESS • FEBUARY 2010 Arvin, CA ORGANIC CALIFORNIA CARROTS Baby Peeled Carrots Cello Carrots - 100% hand packed 25# & 50# Table size & Jumbo Carrots Year-round supply for your convenience! call Andrew, Doug or Eric 661-854-3156 Reader Service #6 3 Reader Service # 3 6

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ilver Creek Software (SCS) focuses on delivering a state-of- The software allows customized sales and operations tracking the-art, high-quality ERP accounting and management sys- boards to be designed to address specific business challenges, such tem to fresh produce distributors, growers, packers, ship- as tracking order status, load status, item status and alerts on prob- pers and brokers. Established in 1982 by John Carpenter, lems. “Through the use of ProAlert, Visual Produce can be set up to president, and Tina Reminger, vice president, the company automatically notify managers or users when pre-defined alert crite- Sflourished as a family-owned business throughout the ‘80s and ‘90s, ria are met,” states Reminger. “As an example, an e-mail alert can eventually receiving IBM’s top VAR award of 1988 and Inacom’s be sent to a manager whenever an order margin amount falls below President’s Award of Excellence. The company’s increasing orienta- a specific value. Or a report can automatically be generated and tion toward software development led it to deliver Visual Produce in routed to an individual at the same time every day. This tool is limit- 1993 to its first produce distribution customer. ed only by your imagination.” “Since then, we have installed Visual Produce in over 85 compa- Visual Produce provides easy access to data from many different nies, both in the United States and abroad,” says Reminger. “Many tools including Report Writer, DataHabitat, Excel, F9 (an Excel- of our customers have experienced explosive growth in their respec- based financial report tool), Visual Internet, ZetaFax, Roadnet and tive markets, and Silver Creek Software has met or exceeded the many others. “Our software’s unique features and benefits ensure related challenges of accommodating those changing business our customers are never told the program doesn’t work the way needs.” they need it to, they have to change their business practices or they SCS’ Visual Produce accounting software has several key opera- have to wait until the next version of the software becomes available tional and financial capabilities. Carpenter explains, “Standard Visu- before a problem is fixed,” Carpenter adds. al Produce modules include sales orders, purchase orders, inventory Visual Produce’s Internet connectivity allows order entry via the processing, accounts receivable, accounts payable and general Web, and it gives customers access to reporting and data publish- ledger. Optional modules include payroll, packing plant manager, ing capabilities. “Some of our current customers have more than 40 grower settlements, brokerage management, fresh-pack processing, percent of their orders being entered through Visual Internet,” repack management, warehouse management, crop accounting and according to Reminger. EDI — Electronic Data Interchange.” SCS advises thinking on a long-term, large scale when looking at Additionally, there are software enhancements such as customer software needs. “When choosing software think long term,” sug- menus, route analysis and management, contract pricing, soft break- gests Reminger. “Remember your business needs will change and er units, commodity boards, business status reports and lot tracking, your software needs will change as well. Also, ask to speak with cus- which allow users to maximize their productivity while using Visual tomers and ask them about service and product. When you buy Produce. “When you buy Visual Produce, you get a full copy of software, you enter into a close-knit relationship with your software Sage Pro Enterprise,” reports Carpenter. “This is a robust and fea- provider.” ture-rich accounting and ERP system with over 25,000 installs world- Reminger cautions companies to realize the IT industry is much wide. The feature set is comparable to programs such as MS Great bigger than just their ERP software provider. “How does the pro- Plains, MAS 200, Navision, ACCPAC Advantage and other business gram you are evaluating fit into the big picture?” she asks. “Is it pro- accounting systems.” prietary or open? What operating systems does it run on? Are the Visual Produce can be integrated with Sage CRM, a powerful programs and data accessible to other entities in the market?” customer relations management system. “Sage CRM is an easy-to- Produce companies currently using Visual Produce for wholesale use, fast-to-deploy, feature-rich CRM solution providing enterprise- distribution and processing include Coastal Sunbelt Produce, Pacific wide access to vital customer information — anytime, anywhere. Coast Fruit, Baldor Specialty Foods and Loffredo Fresh Produce. With Sage ACCPAC CRM, you can better manage your business by Companies using the software for distribution, packing and grower integrating field sales, internal sales, customer care and marketing settlements include Country Fresh Mushrooms, Sweet Clover Pro- information,” Carpenter further explains. duce, Global Agri and MCL Distributing.

84 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 4 D R I E D Merchandising Packaged Nuts F R With numerous health benefits, nuts belong in the U produce department, on their own, eye-catching display. I T BY THERESA BRAINE

& rom end-cap displays to shelf space, N whether they are chocolate-cov- ered, flavored or salted inside the U shell, packaged nuts are breaking T out of the baking aisle and making S Ftheir way to the produce section as more and more information emerges about their health benefits. “Until a few years ago, nuts were carried at the bottom of the baking aisle. It was almost an afterthought,” says Andrew Still- man, owner and president of Amport Foods, based in Minneapolis, MN. “Today, we’re putting them in our salads to make them more healthful. You can’t pick up a maga- Nuts are migrating toward the produce aisle in packages that look as though they zine without reading some story about how were packaged in the back room. nuts are helping you.” To this end, nuts are migrating toward is the first choice of Commack, NY-based the floor and when the top is empty, slide the produce aisle in packages that look as Setton International Foods Inc., according to out the bins from beneath and restock. though they were packed in the back room. chief operating officer Mia Cohen. The com- Leigh Vaughn, director of produce and They are placed in complementary color or pany ships its product in produce tubs that floral at Associated Food Stores Inc., head- taste configurations or cross-merchandised stack out in trees on a mini-pallet small quartered in Salt Lake City, UT, says the with other products likely to be consumed enough to place at the end of the aisle. The company employs a few strategies, includ- at the same time. New varieties of nut prod- product literally comes straight out of the ing a cello-pack nut that they put near the ucts and new ways to use them are being hand jacket and into the produce aisle. It’s peanut section. “The peanuts are a destina- promoted beyond seasonal efforts. sold like that and then thrown away. “So as tion stop pretty much year-round,” says “We find that consumers are looking for a they get sold, you just remove the trays,” Vaughn. “They are seasonally important.” snack that is both delicious and good for Cohen says. “It’s very easy.” Associated Food also buys a local snack you,” says Kourtney Schepman, spokesper- End-cap displays don’t take up perma- and nut line from Nuts For You, a small com- son for Los Angeles, CA-based Paramount nent floor space and are thus ideal for pro- pany in Preston, ID. The company supplies Farms. “Snackers today are more health-con- motional or seasonal sales. “You’re not modular racking to the stores that have a six- scious than ever and are looking for health- investing in tables. It’s not a fixture,” Cohen month buying commitment, which they can ful alternatives to high-calorie snacks.” says. “Dried fruits and nuts work very well customize to their particular end-caps — a Nuts are flying off the shelves — or out in produce because they’re an agricultural strategy Vaughn deems “pretty successful.” of the end-cap displays, as it may be. “We item and are healthful like all fresh produce. Amport’s Stillman says a stand-alone, sell nuts year-round on an equal basis with They do much better in produce than gro- year-round, four-to-six-foot section is the key a small spike in a couple of traditional nuts cery. But it’s hard to get table space in pro- for both dried fruits and nuts and stops — pecans and walnuts — during the holi- duce and there aren’t shelves there either, them from interfering with the presentation days,” Stillman says. “Otherwise, we have so these end-cap displays work really well.” of the produce section. seen the sales of those nuts just as strong in Paramount Farms, maker of the Wonder- Gerland’s Food Fair Inc., located in Hous- July as they are in November.” ful brand of pistachios, uses a quarter-pallet ton, TX, places nuts smack in the middle of and half-pallet display bin, with the top part the produce department, “usually between DISPLAY PROMINENTLY of the bin containing bags of product. Marc the citrus and the potatoes,” says Rick End-cap displays are a great choice for Seguin, director of marketing, explains the North, senior vice president of fresh prod- merchandising packaged nuts thanks to system is built around a wooden frame, with ucts. “We usually try and do colorful signs their mobility and ease of installation. That back-stock cases underneath. You put it on on them to show seasonality.”

86 PRODUCE BUSINESS • FEBRUARY 2010 Diamond Foods Inc., based in Stockton, body’s Nuts! brand, which includes Salt & CA, has an Emerald Harmony line, which is Pepper pistachios with a hint of garlic; “merchandised in a wooden display rack Roasted No Salt, roasted to add crunch; “You have to price with a small footprint that fits easily into the European Roast, flavored with a hint of the product at a space-challenged produce section,” says apple cider and vinegar; and South of the Melissa Waters, associate marketing manag- Border, a flavor blend of chili spice and price point that er. “The use of wood for the Emerald Har- tangy lime. mony rack emphasizes the natural products Emerald’s Cocoa Roast Almonds and Cin- makes it easy for in the Harmony line. The wooden rack can namon Roast Almonds are unique in that consumers to pick also serve as a permanent fixture in a retail- the coating applied during the proprietary er’s produce aisle, and enhance the aesthet- roasting process does not add calories, and up. I can’t explain ic of the shopping area.” the additional layer of flavoring does not why 99-cents is a come off onto your hands. MAKE IT LOOK Another area of interest is a co-branded magic number, but HOME-GROWN product. E.J. Cox Co., based in Clarkton, keeping it under a Retailers and shippers agree it’s impor- NC, was the first company to do this about tant to make it look as if the nuts were pack- two years ago. Working with famous Tabas- dollar is key.” aged in the store. Amport’s printed bag “is co sauce maker, Mc Ilhenney, the company either all clear or it is clear on one side with infused its in-the-shell peanuts with the — Terry “Peanut” Williams just a blank back or printed back,” describes spicy sauce, creating a hybrid brand com- Amport’s Stillman. “On the back of the bag, bining the two names. E.J. Cox Co. of course, you have your nutritional infor- Packaging is changing, too. Cox does mation that’s required, but the front of the both horizontal and vertical bags, says bag is not allowed to have any sticker at all.” national sales manager, Terry “Peanut” not others. Especially when it comes to pri- Associated Food does something similar, Williams. The company is also the first in- vate label, “It has to be better-priced and it and it works well, says Vaughn. “It almost the-shell peanut company to add a re-seal- has to be as good or better quality than the looks like it was packed in the back room,” able bag to its line-up. “No other in-shell national brand,” says Amport’s Stillman. Vaughn says. “It’s not, of course — it’s got all peanut company is doing that at this time,” “You have to price the product at a price the nutritional information on it — but if he says of the innovation that was added in point that makes it easy for consumers to you don’t look at it closely, you think it mid-2009. pick up,” says Cox’s Williams. “I can’t might have been packaged right on site.” Setton has put a pour spout on its bags of explain why 99-cents is a magic number, but Similarly, Gerland’s puts shelled nuts out flavored pistachios, says Cohen. keeping it under a dollar is key.” There has in a produce tray over wrapped with a label, Adding to the exclusivity, more and also been a surge in past few years of 10-for- says North. more retailers are opting for private labels. $10, “and we have products that are friendly Setton’s packaging is “perceived as fresh Amport does private labels for the nation’s to the philosophy,” he adds. and straight from the farm,” explains Cohen. Top 10 grocers. “It is the most growing seg- “There’s a no-frills look and feel to it; the ment of the grocery produce world,” Still- SHOW THEM HOW packaging is really about the product, and man adds. It is a delicate balance, because TO USE IT it’s re-sealable, so it locks in freshness.” many times, the consumer will judge the Many retailers and shippers tie in nuts At Diamond, “the trend in packaging is to quality of an entire store by what’s sold with other products, increasing sales of show as much of the product as possible,” under the store’s label. both. Amport supplies a tablet with tear- says Waters. “This means clear packages Paramount works directly with its retail- away recipe cards. “If you provide the with minimal branding. Package types ers to develop a private label. Private labels recipe, you’ve made it so easy for the con- include tubs, rounds and bags. Bags can be are the latest trend for Sachs, too. “We have sumer,” says Stillman. flat, which offer stackability in a section that seen a surge in private label in the past Sachs connects its promotions to national aims for minimal footprint, or gusseted three years,” says Williams. “It seems to events such as the Super Bowl, Williams stand-up bags, which offer maximum prod- come around every few years that the says. Likewise, NASCAR season starts in uct visibility.” supermarket chains and the wholesalers February with the Daytona 500, which is want to bag their product.” “always a big TV draw, when people are MIX IT UP hosting parties for the first race of the sea- Stillman of Amport Foods points out that USE UNIQUE SIGNAGE son. We like to see the retailer peg promo- fresh produce is in shorter supply during Amport prefers the custom signage tions around national events where people the winter months and suggests retailers approach, “largely because only about a host parties,” he adds, “because that’s where keep pulling people into the produce sec- third of the produce departments will even people buy our product.” tion with year-round offerings that comple- allow signage,” Stillman says. “But for those Overall, it’s key to think about nuts dif- ment vegetables. “Those things make for that do, we try to work on the theme ferently and increase sales by emphasizing good fill, and people like to snack,” Stillman behind what they’re doing. For instance, if the ways they can be combined with pro- says, adding that Amport’s line of chocolate they’re setting up a whole section and duce or used on their own. “It’s those pro- cashew, chocolate pecan, walnut, yogurt- want minimal signage, we’ll put maybe a duce sections that have broken away from coated nuts and other offerings, “takes what strip sign across the top of the section, the norm that have become most success- some people consider a bland product and maybe healthy alternative snacks, nuts and ful,” Stillman says. “You have to bring the makes it something they’re willing to eat.” dried fruits,” he adds. message home to consumers through proper Paramount Farms packages the Every- Pricing plays a role in some cases, but displays and presentation.” pb

FEBRUARY 2010 • PRODUCE BUSINESS 87 FLORAL WATCH ANNOUNCEMENT NEW PRODUCTS

VERIFLORA CERTIFIED TOTALLY TUBULAR SEEDS FOR PUPS JUST ADD PLANTS Olson's Greenhouse, Salem, UT, Creations of Earth, Wellington, Rosso's International, Pembroke QGrow Products Inc., Boca has been independently certified FL, introduces Tubescapes, a new Park, FL, launches a line of 12 Raton, FL, introduces a under the VeriFlora Certified concept in dish gardens. Wrapped assorted organic herbal grow kits HyperGrow Hydroponic Garden Sustainably Grown eco-label. with a high-end vinyl material, the in biodegradable bamboo pots. Kit. Ideal for the patio, balcony VeriFlora certification signifies tube gardens are planted with The company is donating 100 or porch, this hydroponic gar- that Olson's Greenhouse prac- orchids, bromeliads, foliage and percent of the profits of these dening kit includes: 2-tier pot- tices sustainable and eco-friend- succulents. Offered in 10- and 12- grow kits to NEADS — a non- ting system, Leca Stones, grow ly methods in production, ship- inch containers, the dish gardens profit organization that trains cubes, Green Air products nutri- ping and labor management. are available in a variety of colors. service dogs for Iraq and ent starter pack, submersible Scientific Certification Systems, They also are designed with an Afghanistan veterans who return pump, fountain and tubing. Emeryville, CA, administers the excellent drainage system to pre- with devastating injuries. Illustrated instructions are also VeriFlora program. vent over watering. included, but the plants are not.

Reader Service No. 336 Reader Service No. 337 Reader Service No. 338 Reader Service No. 339

ANNOUNCEMENT NEW PRODUCTS

FAVORITE NEW FOLIAGE PLANT BIODEGRADABLE PLANTERS WITH AFLARE SPOTS OF DISTINCTION Hawaiian Sunshine Nursery Inc., Plant Marketing, LLC, Mount Highland Supply Corp., Highland, Koen Pack USA, Miami, FL, intro- Hilo, HI, received the Favorite Dora, FL, now offers Bio Gardens IL, introduces Cushion Flare Earth duces polka dot bags and sleeves New Foliage Plant award for its — biodegradable planters featur- Covers in Purple, China glow, and plaid floral sleeves as addi- Kalanchoe thrysiflora “Fantastic” ing four, 4-inch tropical plants. Brick red and Cream on brown tions to its line of floral wrapping at the Tropical Plant Industry Attached bio tags explain the Kraft paper. The flare supports the solutions. The water-resistant Exhibition (TPIE) in Fort planter is 100 percent biodegrad- low foliage and enhances the bags, which measure 5"H x 5"W x Lauderdale, FL. The award was able, made from plant fibers and plant. Brown Kraft Earth Covers 5"D, arrive flat in cartons of 200. presented at the annual January can be used indoors and outdoors. are currently produced using a sig- Available in a variety of colors, the event hosted by Florida Nursery, Offered in green, sand and choco- nificant percentage of post-con- handled bag is ideal for potted Growers and Landscape late colors, the dish gardens are sumer or post-industrial recycled blooming plants, foliage and short- Association of Orlando, FL. available in 7, 8 and 10 inches. paper and printed with water- stem bouquets. based inks.

Reader Service No. 340 Reader Service No. 341 Reader Service No. 342 Reader Service No. 343

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]

88 PRODUCE BUSINESS • FEBRUARY 2010 F L O R A Signage Sells L Easy to implement, signage and POS materials are cost-effective elements & of the floral sales strategy that attract, educate and enlighten consumers. F BY KEN HODGE O L I A G E

iven a little more attention and M effectively staffed with “silent salesmen,” such as high-impact A signage and the right point-of- R sale materials, many agree K Gwell-managed floral departments can gener- E ate better profits. Cohesive. Unified. Coordinated. Synchro- T nized. Professional. Each word has been I used to describe an approach for reinvent- N ing supermarket floral departments to draw more shoppers and stimulate sales. Many G supermarkets look at the floral department as an on-again-off-again revenue source revolving mainly around special occasions and holidays, and usually don’t allocate full- time attendants. Some floral areas are rele- Photo courtesy of Esprit Miami Inc. gated to bouquets in buckets near the front Signage and POS tell the story and make purchase decisions easier for consumers. door — overshadowed by a pampered and groomed produce department where rev- MAKE SPACE INVITING ponents should be coordinated to create an enues are undeniably higher. Similar to other departments in the store overall look and feel for the floral depart- “We’ve definitely seen it,” says Dennis where signage is used, the floral department ment, communicate important impressions DeBaltzo, national sales manager for A-ROO will likely show improved revenues when and messages to shoppers and lure them in, Co. LLC, of Strongsville, OH. “It’s obvious to specials, prices and other information are advises Sandy Jahnke, vice president of the consumer when time and effort have communicated to consumers, contends Esprit Miami Inc., headquartered in Miami, been put into the floral department. Chains Bruce Brady, vice president of business FL. “When retail customers walk into a gro- we have worked with — and there are many development for Farmers’ West Flowers & cery store, they’re instantly bombarded by — who institute color schemes, have seen Bouquets, in Carpinteria, CA. “People spend massive color displays of fresh fruit and in- definite upticks in sales.” He notes color a certain amount of time on each purchase. season produce, sale signs and other mer- cycles that come in and out of favor with It must be obvious to consumers what the chandise,” she reasons. “If the floral display consumers; one preferred combination is product is, what it costs and, if a story goes is nothing more than a hodgepodge of a few chocolate brown with mint green. along with it, make it brief,” he elaborates. stands of random bouquets without signage Coordinating colors is just one of many “An example might be ‘California’s Best’ or or any organization, the consumer just ways supermarkets can create a more uni- ‘Environmentally Friendly.’ Do these walks right past it without even noticing. I fied and attractive look in their floral depart- themes help sell flowers? Most of us agree recommend hanging banners. They can be ments, according to DeBaltzo, which not they do. We make signage available to our easily changed and they make a can’t-miss, only catches consumers’ attention but also customers,” Brady continues. “It’s not a sci- full-color impact using no floor space. The draws them in to make a purchase. He rec- ence that has been validated for floral yet, best message to convey with large format ommends effective signage, POS materials, but intuitively, most would agree signage signage is the importance of flowers in educational tags and perhaps an overall helps get consumers’ attention.” everyday lives.” theme or tagline. Color schemes, signage and other com- “Another recommendation is the elec-

FEBRUARY 2010 • PRODUCE BUSINESS 89 F tronic coupon dispenser,” Jahnke asserts. ments and it reduces the effectiveness of L “Consumers are keen on the little red flash- the whole process.” ing light and they instantly know good O coupons are inside. However, I’ve not seen “The floral TELL THE STORY R this done in flowers yet.” Both signage and POS materials are department gets A important pieces of the floral sales strategy DEFINE THE DEPARTMENT cut in staffing, but at McCaffrey’s Supermarket outside L In an industry where budgets — and Philadelphia in Yardley, PA, according to margins — are tight, Brady recommends a that’s even more Sandy Liberato, floral department manager. pragmatic approach that minimizes labor on “Signage works best,” she asserts. “It’s impor- & reason signage and & the part of store personnel. “The first thing I tant to extend yourself to your customers. would put there are my flowers,” he advises. education are Last year, we had mini-poinsettias with the F “For signage, it really comes down to what is self-watering string in them. We also had practical — what kinds of stands are avail- important.“ mini-carnations in Santa pots on the wall. O able at grocery stores — such as the iron They are all self-watering, too, but if the cus- — Noam Temkin L man signs. Signage is only good if it is used tomer doesn’t know about it, forget it. I usu- and I think what is commonly known as the Temkin International ally make copies of the information that I iron man is the most effective. They stand describes the plant and how to take care of A out and are easy to position. Plus, they’re it. I roll it up and put it in the plant. Infor- G already at the store.” mation to go along with the plant is like a Dave Lyons, marketing/creative director second little present.” E for Blanc Industries of Dover, NJ, a maker of ny names its bouquets for certain occasions, In nearby North Wales, PA, Redner’s signage for floral and other perishables, says such as ‘Summer Bouquet.’ It had a tagline Warehouse Market focuses on location and floral departments should have their own that said, ‘Just because.’ It also sells things signage, according to Dick Stiels, produce M identities, drawing customers in when they online and does FTD, too. I don’t know and floral director. “Our floral departments A have a need or attracting their attention for what the company’s sales were before, but are right up front when you walk in the R impulse-driven purchases. Encouraging flo- it had a big push and increased sales.” store,” he reports. “We feel location is very ral purchases not only for special occasions Noam Temkin, vice president of sales important. Everybody will see them when K but also for more day-to-day sentimental and marketing for Payson, UT-based Temkin they walk in and, obviously, signage is also E expressions can bring results. International, also emphasizes the need for very important. The biggest thing we have “Kroger does a really good job with flo- a synchronized effort to reach full sales on our signs is the price. People look at the T ral,” Lyons points out. “The last company I potential in floral. “Everybody is looking at plant, the quality and they see the price I worked for, I did Kroger’s floral. The compa- costs,” he points out. “The floral department right away. We always include other things, N gets cut in staffing, but that’s even more rea- such as where the plants or flowers are son signage and education are important. from, what you can combine with them, G Many people think beautiful flowers are whether they take a little or a lot of water, enough, but other things, such as education, require full light or little light. We don’t do can help sales. Any story can be told on the POS material, but we require suppliers to packaging and people pay attention.” have care tags with their plants.” Jahnke adds, “Consumers increasingly “The other important thing is variety,” want to know where the products are com- Stiels adds. “You have to change flowers on a ing from. What’s the story behind them? Are weekly basis. You can’t have the same they Fair-Trade? Are they green? How do I Boston fern week after week. We want cus- care for them? Smaller signage and POS tomers to see new things. Maybe they didn’t materials are a perfect medium for educat- like what we had last week, but this week ing consumers in these areas.” we’ll offer something different. We also Farmers’ West’s Brady concurs, citing move things around the store. If something issues such as fair labor practices, environ- didn’t sell in one spot, you might need to get mental safety and sustainability are impor- it to a different location where people can tant to a portion of the buying audience. He see it a little better.” notes Farmers’ West is a VeriFlora-certified Regarding location, Esprit Miami’s grower, complying with a third-party sus- Jahnke agrees positioning flowers in vari- tainability program for fresh-cut flowers and ous areas of the store can improve sales. potted plants. “One really great ‘trick-of-the-trade’ is to Temkin agrees, saying “Bottom line, put small displays in the greeting card sec- we’re all trying to sell flowers. Signage is tion, the pharmacy area or at the check-out critical. We now offer signage in-house. aisle,” she says. “Consumers are often It’s a harmonious effort — signage, pack- standing in line and surrounded by nothing aging, POS materials and having a certain but candy and magazines. We developed look that works together — so when some- and patented a portable display stand that one is 30 feet from the floral department, can be used in any of these locations. It has they’re drawn to it. It’s all about creating a a very small footprint, but carries a large story. Take away any one of those ele- amount of product.”

Photo courtesy of Temkin International pb

90 PRODUCE BUSINESS • FEBRUARY 2010 RETAIL By Dave Diver PERSPECTIVE Evaluating Sales Results

he most severe economic depression since the Great for at-home meal preparation, potatoes were heavily promoted in Depression has brought about greater changes in con- 25- and 50-pound units. As the years passed, the promotional unit sumer demand than in recent memory. Wide fluctua- and the regularly purchased package size have steadily declined. tions in supply of many fresh fruit and vegetables Now, 5-pound bags often outnumber ten pounders and the display caused retail price changes to become magnified in of bulk potatoes continually increases. When prices are high, such Tmany consumers’ minds. Specifically, had supplies of potatoes and as during last year’s level, 5-pound units became the unit of con- bananas been at the upper end of their historic levels, retail prices sumer choice. On the other hand, this year’s advertised promotions would have been much lower at a time when consumers were are increasingly focused on the 10-pound unit with the price point becoming more value-conscious. similar to last year’s. Unfortunately, the lower supply level of potatoes in the year Storable commodity producers and retailers need to evaluate ending September, 2009, resulted in much higher retails, but nev- deep discount price promotions not on the basis of a single week’s ertheless accounted for an eight percent retail dollar sales gain, event, but rather, total tonnage and dollar sales over an extended even as consumers substituted cheaper alternatives. Now, with time period. Take any extended period and compare results from more normal supplies providing the opportu- varying price programs. This becomes the best nity for more attractive lower priced promo- way to determine the effectiveness of deep dis- tions, what will the sales dollar percentage counting of larger units. change become? Understanding However, tonnage and price are only two Recently, The Perishables Group’s two-year criteria for analyzing the success of any promo- analyses of retail potato pricing and promotions all the factors tional effort. For retailers, the first objective concluded in May, 2008, prior to the beginning surrounding should be getting customers into the store and of the 2008-2009 potato season. One of the secondly, to determine how many consumers reported findings was that heavy discounting of sales data is a purchase the promotional units or an alterna- potatoes during the holidays isn’t necessary. must to prevent tive in the category. However, some retailers believe deep discount- reaching Too frequently, promoters get carried away ing is necessary to be competitive during a weak by big volume only to find the percentage pur- economy. Competitive is the key word, and a conclusions that chasing a sale item, although substantial, may major consideration among nearly all retailers. may not be fully add little to the number purchasing from the While some believe certain items will sell entire category in a non-promotional week. without deep discounts at holidays, others representative. When there is a category with multiple believe there are two groups of items that draw items, retailers may find a moderate price customers at these peak selling periods. First, reduction of one item each week is more traditional holiday basics, and secondly, other effective than an infrequent blow-out sale. items not as individually important, but used After all, the goal should be to sell as many by a greater number of customers than during non-holiday periods. consumers as possible the largest number of products. This is The challenge for retailers is putting together the best promotional when retailers recognize they have captured consumer loyalty program directed at their customer base to achieve the overall sales and can determine the varying degree of customer acceptance for objective at a satisfactory profit rate. individual items. What works for one company may not be appropriate or com- Former Cornell professor, Max Brunk, was among the leading patible with another company’s overall strategy. There is no sin- marketing researchers during the middle of the 20th Century. His gle pricing strategy leading to success. There is a huge gray area sophisticated mathematical analysis always included data compar- with a few outstanding implementations and a small percentage isons involving sales dollars, tonnage, number of consumers pur- that are failures. chasing and total number of customer’s shopping the store. The Perishables Group indicated a survey showed consumers In the infancy days of data processing, the analysis was long and didn’t flinch in last year’s fourth quarter when price increases were tedious, but the conclusions were based on multiple factors involv- a record. What was the relationship between the changes of ton- ing purchasing decisions. Today, data capture can be accomplished nage and dollar purchase changes? at practically the snap of a finger in most organizations. Properly Potatoes are the nearly perfect example of a consumer storable evaluating all of these factors leads to understanding decisions that commodity. In the days of large families and more time available impact the strategy and mission of both retailers and suppliers. pb

FEBRUARY 2010 • PRODUCE BUSINESS 91 EUROPEAN By Sharon Greene, Managing Director RISC International, MARKET headquartered in Paris, France How Americans And Europeans Buy Food

n a financial crisis, one could assume that all consumers are markets to economize on food, which can be seen in a drop from 64 tightening their belts on food spending. However, through a percent to 53 percent of consumers willing to pay the most they global study of food consumption habits, RISC International can afford, and a huge increase from 25 percent to 46 percent of illustrates the differences between Americans and Europeans those seeking to purchase the cheapest food available. When it when it comes to healthy eating and food expenditure in the comes to price, the British can be likened to Germany, as both have Icurrent economic climate. hard bargain discount cultures. As many as 48 percent of Germans shop in hard discount stores, but it is worth noting that the quality AMERICA of products purchased in these stores is significantly higher than Residents of the United States of America stand out as being the found outside of Germany and the choice more extensive. Thus, for most likely to purchase food systematically at the lowest price. This the Germans cheap food does not imply a compromise in the same is the result of a very strong food abundance culture, where there is way as it does in England. still an emphasis on quantity. Richly elaborated on in Morgan Spur- Only 28 percent of British consumers worry about their health, lock’s Super Size Me, it can be perceived through many social compared to the European average of 63 percent or the U.S. average objects, but the size of the American refrigera- of 35 percent. However, healthful eating, will, tor is probably the best illustration. Americans for British consumers, like those in the United are also more likely to spend on high quality Smart food States, be an increasingly important aspiration alcohol, wines and furniture than food. Half of over the next five to 10 years with more than the population prefers to shop at the supermar- spending in a 80 percent of British consumers believing that ket for its prices, with hypermarkets in second financial crisis is food is the best medicine. place. While only one in 10 Americans shop in The French see good quality food as a fun- hard discounters, this store category is the most undoubtedly damental right and do not believe they should preferred among the lowest income bracket. have to prioritize their spending in order to get High earners are more likely to purchase food culturally it. RISC has identified a different dynamic to over the Internet, but overall, this is not a pop- that seen in England, with a drop from 54 per- ular option. dependent. cent to 48 percent in those willing to pay the The fast food culture in America will not most they can afford for food, but also a drop end tomorrow, but positive attitudes to health- from 25 percent to 23 percent for those seeking ful eating are increasing. For produce businesses, it may be to purchase the cheapest food possible. encouraging to see that as many as over four in five Americans In contrast, the Spanish prioritize food spending, with 54 per- consider healthful eating to be the best way to protect their cent spending as much as they can afford and only 15 percent seek- health. In 2005, only every second American held this belief, and ing out the lowest prices, making this group the most willing to although this trend will take time to permanently root itself at a spend on food, with Italy a close second at 20 percent and 51 per- societal level, it presents interesting opportunities for the produce cent, respectively. The Latin people’s willingness by the social business. Also, organic is gaining in popularity in the United aspects of food and meal sharing — the aperitif tradition in Italy, States as 47 percent of U.S. respondents agree they are buying the tapas culture in Spain. As many as 90 percent of Spanish con- more organic produce than before; this rises to 57 percent in high sumers believe that eating well is a way to maintain their vitality. income groups and 71 percent in the top 5 percent of the popula- Although preference for cheap and fast food is not dead, U.S.- tion in terms of economic power. based produce businesses have the opportunity to benefit from increasingly positive healthful eating attitudes. This, coupled with EUROPE the rise in popularity of organic produce, indicates the market When comparing the five major European markets (England, shows real promise as businesses will have a larger consumer target Germany, France, Spain and Italy) to the United States, it is impor- to address. However, as targets get larger, consumer expectations tant to note the differences across Europe. For example, England climb and there will be an increasing demand for high quality and and Germany share the U.S. hunger for bargain food shopping, organic food produce, which are more easily available and more which can be used as a means to adjust the family budget. Con- reasonably priced. versely, the Italians and Spanish continue to spend as much as they Those companies considering European expansion could also can afford, because the importance of food and healthful eating out- benefit from the strong appetite for healthy food in Italy and Spain, weighs economic concerns. which is a defining part of Mediterranean culture, but should British consumers are the most likely of the five major European expect to find strong contenders in terms of local competition. pb

92 PRODUCE BUSINESS • FEBRUARY 2010 PRODUCE BUSINESS is accepting nominations for its Sixth 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, 1970).

To nominate someone, please go to www.producebusiness.com and click on the 40 under Forty icon, or fill out this form by March 1, 2010, 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 the back of this sheet for this) Position ______Address ______City ______State ______Postal Code ______Country ______Phone ______Fax ______E-mail ______

Fax back to 561-994-1610 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] n 1960, Don Gualberto Rodriguez began Caribbean Produce with $600 in his pocket and a dream in his heart. Fifty years later, the company is known as the largest and Blast oldest importer of fresh produce in Puerto from the Rico, as well as the only trading member of theI Produce Blue Book on the island. “He had so much ambition and wanted to develop new products and services for grocery store con- Past sumers,” says his grandson, Gualberto Rodriguez III, president of Caribbean Produce. To that end, Don Gual- berto began repacking tomatoes in clear cellophane, a far cry from cardboard boxes, the typical packing material of the time, which easily masked any blemishes. Gaulberto’s “honest tomato” became an instant hit, and set the trend for what is still used today. Celebrating the company’s 50th anniversary this year, Gualberto III looks back on his family’s business with great pride and respect, and even remembers the 25th anniversary party “in a humble restaurant right on the ocean in San Juan,” captured in this photo. “My dad, grandfather and Uncle Luis ate lunch there nearly every day, so it was a natural fit to have the party there. We’ve since outgrown the restaurant space, but its owners continue to attend our annual party,” he adds. Today, Caribbean Produce handles nearly 1,000 produce items, supplying companies such as From left: Gualberto (Tito) Rodriguez, Don Wal-Mart, Burger King and Subway. Gualberto Rodriguez and Luis Rodriguez. 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]

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.

FEBRUARY 2010 COMPANY PAGE # RS# PHONE FAX COMPANY PAGE # RS# PHONE FAX Agrexco USA, Ltd...... 26...... 56 ...... 718-481-8700 ...... 718-481-8710 Ippolito Produce ...... 71...... 72 ...... 416-252-8809 ...... 416-252-0710 Albert’s Organics ...... 79...... 36 ...... 800-996-0004 ...... 610-444-0316 Jem D International...... 46...... 10 ...... 519-733-3663 ...... 519-733-9970 Associated Potato Growers, Inc...... 63...... 45 ...... 800-437-4685 ...... 701-746-5767 J.R. Kelly Company ...... 26...... 62 ...... 888-344-4392 ...... 618-344-2297 Maurice A. Auerbach, Inc...... 49...... 35 ...... 201-807-9292 ...... 201-807-9596 Kern Ridge Growers, LLC ...... 79...... 63 ...... 661-854-3156 ...... 661-854-2832 Awe Sum Organics, Inc...... 79...... 33 ...... 831-462-2244 ...... 831-462-2552 KPG Solutions, Inc...... 82-83...... 78 ...... 407-331-5151 ...... 407-331-5158 Basciani Foods, Inc...... 52...... 79 ...... 610-268-3044 ...... 610-268-2194 L&M Companies, Inc...... 33...... 85 ...... 509-698-3881 ...... 509-698-3922 Blue Book Services ...... 19...... 19 ...... 630-668-3500 ...... 630-668-0303 Lakeside Organic Gardens ...... 78...... 64 ...... 831-761-8797 ...... 831-728-1104 California Leafy Greens Marketing ...... 17...... 83 ...... 916-441-1240 LGS Specialty Sales, Ltd...... 16...... 3 ...... 800-796-2349 ...... 718-542-2354 Canadian Produce Marketing Association...... 55...... 8 ...... 613-226-4187 ...... 613-226-2984 Lisa Inc...... 42...... 11 ...... 520-281-1863 ...... 520-281-2848 Capay Canyon Ranch ...... 79...... 31 ...... 530-662-2372 ...... 530-662-2306 Maine Potato Board...... 63...... 43 ...... 207-769-5061 ...... 207-764-4148 Capital City Fruit Co., Inc...... 29...... 38 ...... 515-981-5111 ...... 515-981-4564 Mann Packing Company, Inc...... 9...... 9 ...... 800-884-6266 ...... 831-422-5171 Champ’s Mushrooms ...... 53...... 57 ...... 866-Champs1 ...... 604-607-0787 Mastronardi Produce, Ltd...... 45...... 73 ...... 519-326-1491 ...... 519-326-8799 L. Cherrick Horseradish Co., Inc...... 29...... 71 ...... 314-421-5431 ...... 314-421-3277 Melones International ...... 48...... 5 ...... 520-281-2282 ...... 520-761-1829 Christopher Ranch ...... 79...... 6 ...... 408-847-1100 ...... 408-847-0581 MIXTEC Group ...... 55...... 50 ...... 626-440-7077 ...... 626-440-1557 Christopher Ranch ...... 49...... 7 ...... 408-847-1100 ...... 408-847-0581 MJB Sales, Inc...... 52...... 65 ...... 610-268-0444 ...... 610-268-0837 Ciruli Brothers ...... 35...... 23 ...... 520-281-9696 ...... 520-281-1473 Monterey Mushrooms...... 54...... 66 ...... 636-587-2771 ...... 831-763-2300 Country Fresh Mushroom Co...... 53...... 12 ...... 610-268-3043 ...... 610-268-0479 N&W Farms...... 65...... 44 ...... 662-682-7961 ...... 662-682-7998 D’Arrigo Bros. Co. of New York...... 15...... 34 ...... 800-223-8080 ...... 718-960-0544 N2N...... 84-85...... 78 ...... 407-331-5151 ...... 407-331-5158 Dawson Farms ...... 65...... 75 ...... 318-878-5806 ...... 318-878-2826 National Mango Board...... 39...... 22...... 877-MANGOS-1 ...... 407-629-7593 Del Monte Fresh Produce ...... 96...... 82 ...... 800-950-3683 ...... 305-520-8495 New England Produce Council ...... 24...... 67 ...... 781-273-0444 ...... 781-273-4154 Dole Fresh Fruit Company...... 2...... 14 ...... 818-879-6600 ...... 818-879-6628 Nonpareil Corp...... 57...... 39 ...... 800-522-2223 ...... 208-785-3656 dProduce Man Software ...... 72...... 25 ...... 888-PRODMAN ...... 650-712-9973 Northern Plains Potato Growers Assn...... 62...... 40 ...... 218-773-3633 ...... 218-773-6227 Duda Farm Fresh Foods, Inc...... 31...... 37 ...... 561-978-5714 ...... 561-978-5705 Omega Produce Company, Inc...... 42...... 74 ...... 520-281-0410 ...... 520-281-1010 Earthbound Farm...... 78...... 84 ...... 888-624-1004 ...... 831-623-7886 Pack-Right LLC ...... 25...... 2 ...... 888-706-2400 ...... 520-377-2874 East Coast Brokers & Packers, Inc...... 95...... 24 ...... 800-557-7751 ...... 863-869-9850 Plain Jane ...... 48...... 5 ...... 520-281-2282 ...... 520-761-1829 Eurofresh Farms, Ltd...... 44...... 13 ...... 520-384-4621 ...... 520-384-4187 Potandon Produce ...... 59...... 15 ...... 800-767-6104 ...... 208-524-2420 Farm Pak Products, Inc...... 65...... 76 ...... 800-367-2799 ...... 252-459-9020 Produce for Better Health Foundation...... 13...... 20 ...... 302-235-2329 ...... 302-235-5555 Farmer’s Best ...... 37...... 42 ...... 520-281-1411 ...... 520-281-4163 Produce Pro Software...... 16...... 68 ...... 630-395-0535 ...... 630-572-0390 Florida Department of Agriculture...... 32...... 51 ...... 850-488-4303 ...... 850-922-0374 Richard E. Ryan & Associates Limited ...... 70...... 27 ...... 416-259-2381 ...... 416-259-2689 Fresh Taste Produce Limited Canada ...... 67...... 58 ...... 416-255-2361 ...... 416-255-8742 SAGARPA - Embassy of Mexico ...... 40-41...... 26 ...... 202-728-1729 ...... 202-728-1728 Freska Produce International, LLC ...... 38...... 59 ...... 805-650-1040 ...... 805-650-3550 O. C. Schulz & Sons, Inc...... 63...... 46 ...... 701-657-2152 ...... 701-657-2425 Gambles Ontario Produce, Inc...... 68...... 21 ...... 416-259-6391 ...... 416-259-4392 Silver Creek Software...... 84-85...... 4 ...... 208-388-4555 ...... 208-322-3510 Garber Farms...... 64...... 53 ...... 337-824-6328 ...... 337-824-2676 Spice World, Inc...... 49...... 47 ...... 800-433-4979 ...... 407-857-7171 Giorgio Fresh Co...... 53...... 48 ...... 800-330-5711 ...... 610-429-3810 Stronach & Sons, Inc...... 72...... 52 ...... 416-259-5085 ...... 416-252-0110 The Giumarra Companies ...... 77...... 55 ...... 760-480-9133 SunnyRidge Farm, Inc...... 27...... 28 ...... 863-299-1894 ...... 863-299-7794 Global Organic Specialty Source, Inc...... 78...... 60 ...... 877-952-1198 ...... 941-358-6551 Thomas Produce Sales, Inc...... 42...... 29 ...... 520-281-4788 ...... 520-281-2703 Godwin Produce Co...... 65...... 54 United Fresh Produce Association ...... 47...... 17 ...... 202-303-3400 ...... 202-303-3433 Gourmet Specialty Imports LLC ...... 49...... 32 ...... 610-345-1113 ...... 610-345-1116 Veg-Pak Produce, Ltd...... 69...... 16 ...... 416-255-4686 ...... 416-255-4677 Grower Alliance, LLC...... 42...... 61 ...... 520-761-1921 ...... 520-377-9189 Vessey & Company, Inc...... 16...... 30 ...... 888-505-7798 ...... 760-356-0137 Highline Mushrooms...... 54...... 18 ...... 519-326-8643 ...... 519-326-7222 Village Farms...... 50...... 81 ...... 877-777-7718 ...... 610-429-6222 I Love Produce LLC...... 49...... 77 ...... 610-869-2205 ...... 610-869-5711 Wada Farms Marketing Group ...... 58...... 69...... 888-Buy-Wada ...... 208-542-2893 Idaho Potato Commission...... 61...... 49 ...... 208-334-2350 ...... 208-334-2274 J. Roland Wood Produce ...... 64...... 70 ...... 919-894-2318 ...... 919-894-6195

94 PRODUCE BUSINESS • FEBRUARY 2010 Reader Service # 24 Reader Service # 82