Produce Business October 2010

Reader Service # 111 OCTOBER 2010 • VOL. 26 • NO. 10 • $9.90

FEATURES

72 WHOLESALERS STEP UP RETAIL PRESENCE Produce wholesalers find value in working hand-in-hand with retailers.

90 CONSUMER PACKAGING: NEW DESIGNS ON FAMILIAR THEMES Packages that are convenient, keep food fresh and appealing and deliver a message are a vital COVER STORY ingredient in produce department sales. 30 TWENTY-FIVE INNOVATIONS 99 WEST MEXICAN PRODUCE REPORT: MOMENTUM GATHERS FROM LAST SEASON THAT SHAPED THE INDUSTRY Conditions are ripe for West Mexican growers to build on their success. As PRODUCE BUSINESS hits a milestone, we look at innovations that shaped the past 25 years and 108 SWEETEN SALES OF IMPORTED BERRIES IN FALL AND WINTER innovations that will propel us ahead. Consistent supplies from tried-and-true sources accompany crops from newly producing locales.

118 SAVORY SALAD TIE-INS ADD VERVE TO A GROWING CATEGORY COMMENTARY From croutons and dressings to nuts and even meat, salad tie-ins complement the category.

14 THE FRUITS OF THOUGHT 126 CAUTIOUS OPTIMISM REIGNS FOR FALL FLORIDA PRODUCE An Election Of Significance Following this past year’s record-breaking freeze, Florida growers, packers, retailers and consumers look forward to a bountiful 204 RETAIL PERSPECTIVE winter season of fresh Florida fruit and vegetables. Retirement Preparations 136 RED RIVER VALLEY POTATOES: FOOD WITH A STORY 206 EUROPEAN MARKET Despite the unique characteristics of Red River Valley potatoes, national retailers Mobile Grocery Shopping must do more to promote their origin. Begins To Trend In Europe 142 SAN LUIS VALLEY POTATOES OFFER OUTSTANDING TASTE AND VALUE 208 VOICE OF THE INDUSTRY Sustainability through freight advantages, along with smart promotions, Social Media — Am I Missing Anything? should help market this powerhouse of a potato.

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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.

OCTOBER 2010 • PRODUCE BUSINESS 3 OCTOBER 2010 • VOL. 26 • NO. 10 • $9.90

IN EVERY ISSUE

6 THE QUIZ 8 WASHINGTON GRAPEVINE 159 166 12 RESEARCH PERSPECTIVES DEPARTMENTS 13 COMMENTS AND ANALYSIS MERCHANDISING REVIEWS 16 PRODUCE WATCH 148 10 Ways To Sweeten Apple Sales Year-Round 191 FLORAL WATCH With new varieties popping up every year adding to an already powerful category, retailers must stay vigilent to what works and what doesn’t. 209 INFORMATION SHOWCASE 159 Expectations Are High For This Year’s California Citrus Crop 210 BLAST FROM THE PAST Upcoming California citrus season offers greater varietal selection.

ORGANIC PRODUCE MARKETING IN THIS ISSUE 166 Five Ways To Reach Out To The Organic Consumer 10 SPECIAL NOTE Despite a burdened economy, organic sales continue to climb, What Is Love? by Jim Prevor proving the organic customer is here to stay.

28 LETTERS TO THE EDITOR FRESH-CUT MARKETING 207 POEM Something Real by Jim Prevor 174 Packaged Salads Stand The Test Of Time In an effort to revamp a mature category, fresh-cut processors create new blends, kits and varieties, with a keen focus on packaging and organics.

SPECIAL SECTIONS 181 The Fresh-cut Fruit Challenge On a growth trajectory, fresh-cut fruit offers retailers opportunities 60 to profit from newer categories and to differentiate themselves from the competition. WAL-MART PRICING REPORT: DESPITE ONE WAL-MART SUPERCENTER IN THE NEIGHBORHOOD, NEW JERSEY AND DRIED FRUIT AND NUTS LONG ISLAND RETAILERS STAY THE COURSE 188 Boosting Pecan Sales Is An Easy Nut To Crack Wal-Mart is used to pushing independents around. Savvy retailers remind consumers that whether they are cooking, baking or NewYorkMetromayhavealessontoteachthe just snacking, pecans can be an everyday item. behemoth from Bentonville.

FLORAL AND FOLIAGE MARKETING 195 FLORAL MASTERS OF MERCHANDISING 192 Save Time And Money With Pre-greened Options Consumers are enamored with, and encouraged by, the possibilities of green bouquets and arrangements offered by savvy retailers looking to boost floral sales while saving labor costs.

SPECIAL FEATURE

FROM THE PAGES OF THE PERISHABLE PUNDIT 24 Dissecting The Meaning Of Local, Sustainable And Flavorful

4 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 118 PRODUCE QUIZ

THIS MONTH’S WINNER Mir Mir OCTOBER 2010 • VOL. 26 • NO. 10 • $9.90 Produce Manager, Weiner Foods P.O. Box 810425 • Boca Raton • FL 33481-0425 Phone: 561-994-1118 • Fax: 561-994-1610 Whiting, IN [email protected]

PRESIDENT &EDITOR-IN-CHIEF While Mir refers to him- the produce department. “I’ve been in James E. Prevor self as the produce man- retail for a long time,” says Mir, “but this [email protected]

ager at this 60-year-old is my first time working in the produce PUBLISHER/EDITORIAL DIRECTOR landmark retailer, he is business. I’ve had some help from local Ken Whitacre really the owner and general man- buyers that we send to Chicago for the [email protected]

ager of the store he is helping to rebuild bulk of our inventory. Overall, it’s been a SPECIAL PROJECTS EDITOR from the ground up. The neighborhood great learning experience.” Mira Slott favorite had recently closed its doors, but While Mir wasn’t familiar with PRODUCE [email protected]

thanks to Mir’s efforts and determination, BUSINESS until recently, he says he has ASSISTANT EDITOR have opened once again. “It’s a struggle to found it to be an invaluable resource. “I Amy Shannon compete with the larger retailers in the read it cover to cover. It has taught me [email protected]

area, but the locals really love it here, so I so much, especially when it comes to ASSISTANT EDITOR believe we can do anything if we set our introducing me to local distributors that I Jennifer Leslie Kramer mind to it.” can work with. I look forward to getting it [email protected]

The first order of business? Improving in the mail each month.” CIRCULATION MANAGER Kelly Roskin How To Win! To win the PRODUCE BUSINESS Quiz, the first thing you have to do is enter. The rules are simple: Read [email protected] through the articles and advertisements in this issue to find the answers. Fill in the blanks corresponding to the questions below, and either cut along the dotted line or photocopy the page, and send your answers along with a EXECUTIVE ASSISTANT business card or company letterhead to the address listed on the coupon. The winner will be chosen by drawing from Fran Gruskin [email protected] the responses received before the publication of our December issue of PRODUCE BUSINESS. The winner must agree to submit a color photo to be published in that issue. EUROPEAN BUREAU CHIEF Robert Zwartkruis WIN A SET OF GOLF CLUBS! [email protected] This set includes irons, woods, a putter and self-activating stand bag. PRODUCTION DIRECTOR The fairway wood comes with graphite shafts for better durability and Diana Levine accuracy, as well as a large deep cavity iron design for improved control [email protected] on off-center hits. The lightweight carry bag has double shoulder straps PRODUCTION LEADER and multiple pockets. Jackie Tucker

PRODUCTION DEPARTMENT JOANNA ARMSTRONG QUESTIONS FOR THE OCTOBER ISSUE SUNSHINE GORMAN FREDDY PULIDO 1)Sunlight International Sales is home to which brand of table grapes? ______TRADE SHOW COORDINATOR ______Jackie LoMonte [email protected] 2)Name three types of fresh produce marketed by Trinity Fruit Sales. ______CONTRIBUTING EDITORS ______Meredith Auerbach, Carol Bareuther, Julie Cook Ramirez, Bob Johnson, Sandy Lee, K.O. Morgan, Jodean Robbins, 3) How many commodities does Ocean Mist Farms provide?______Barbara Robison, Bryant Wynes

ADVERTISING 4)How does The Garlic Co. package its peeled garlic? ______Eric Nieman, Associate Publisher [email protected] Sandy Lee [email protected] 5)Besides avocados, what other commodity does Calavo offer?______Bill Martin [email protected] 6) Who started Booth Ranches in 1957? ______Colleen Morelli [email protected] Ellen Rosenthal [email protected] FLORAL DEPARTMENT MARKETING This issue was: ❏ Personally addressed to me ❏ Addressed to someone else E. Shaunn Alderman [email protected] Name ______Position ______Send insertion orders, payments, press releases, photos, letters to the editor, etc., to Company ______PRODUCE BUSINESS, P.O. Box 810425 Boca Raton, FL 33481-0425 Address ______PH: 561.994.1118 FAX: 561.994.1610 PRODUCE BUSINESS is published by Phoenix Media Network, City ______Inc. James E. Prevor, Chairman of the Board P.O. Box 810425, Boca Raton, FL 33481-0425. State ______Zip ______Entire contents © Copyright 2010 Phoenix Media Network, Inc. All rights reserved. Phone ______Fax ______Printed in the U.S.A. Publication Agreement No. 40047928 Photocopies of this form are acceptable. Please send answers to: OCTOBER QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425

6 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 101 ON G GT RA N P I E H V S I A N W E Industry Converges On U.S. Capitol

By Patrick Delaney Communications Manager United Fresh Produce Association

n September, the United Fresh Washing- CA). The lawmakers addressed the group on Attendees met with ItonPublicPolicyConferencebrought issues including child nutrition, food safety more than 525 attendees from 35 states and the Farm Bill, among others. Immediately more than 100 to the nation’s capital to further the public pol- following, attendees met with more than 100 members of Congress icy goals of the fresh produce industry in crit- members of Congress and their staff, convey- ical areas such as child nutrition, food safety, ing the importance of sound, science-based and their staff, immigration, labor, sustainability, pesticide food safety legislation, sensible labor policy, conveying the issues and more. better child nutrition standards and more. Fol- lowing the congressional visits, attendees importance of sound, joined lawmakers and their staff at the Fresh science-based food FestivalonCapitolHillasmembersshowcased different commodities and products at the safety leglislation, forefront of the produce industry. sensible labor policy, better child nutrition standards and more. On Tuesday afternoon, WPPC attendees gathered at the Gaylord National Hotel for the Food” program and outlined the administra- annual welcome reception (pictured above). tion’s efforts on locally grown food initiatives, The reception enabled attendees to network followed by Department of Health and and interact with Management Resource Cen- Human Services Secretary Kathleen Sebelius ter exhibitors, including solutions providers (pictured lower left) who detailed United’s “A from the traceability and logistics, labor, gov- Later that night, the United Fresh Political Salad Bar in Every School” campaign as an ernment and academic fields, before getting Action Committee, FreshPAC, held its annual effective strategy for increasing the consump- down to business Wednesday morning. fundraising dinner at Charlie Palmer Steak tion of healthful and nutritious foods by Following the reception, more than 250 sup- overlooking the U.S. Capitol. Attendees to the America’s schoolchildren. porters of United’s“A Salad Bar in Every School” dinner heard from House Minority Leader Following Secretary Sebelius’ address, six campaign took part in a dinner cruise along the John Boehner (R-OH, pictured above), who top journalists from Reuters, Bloomberg, Potomac River to raise funds for the placement detailed the steps necessary for Republicans to Gannett, Tribune Company, McClatchy of salad bars in New Orleans in conjunction take back control of Congress in the upcom- Newspapers and National Public Radio with United’s 2011 convention and expo. ing midterm elections. (NPR) took part in a roundtable discussion on the role of the national media in produce industry issues. Finally, to cap this year’s WPPC, political adviser and author, Frank Luntz, led a discussion in political messag- ing, including what issues and even what words carry the most weight in the greater political discourse. For photos and highlights from this year’s WPPC, visit www.unitedfresh.org/programs/wppc/wppc_daily_update, and a video On Wednesday, before the annual March Thursday morning was highlighted by recap of the conference can be found at on Capitol Hill, attendees heard from Senators addresses from USDA Deputy Secretary www.unitedfresh.tv. Next up for United Fresh Lindsey Graham (R-SC, pictured above), Deb- Kathleen Merrigan, who spoke to attendees is the 2011 convention and expo, May 2-5 in bie Stabenow (D-MI) and Barbara Boxer (D- on USDA’s “Know Your Farmer, Know Your New Orleans, LA.

8 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 126 special note FROM JIM PREVOR What Is Love?

hough we launched PRODUCE did it almost instantly, and when I tried to thank deck me. Yet we are still in this together. Not too BUSINESS at the PMA Conven- him, he silenced me and said that I had “earned many friends can say that, and I am indiscernibly tion in San Francisco in 1985, it my bones” in the industry and if he could help, fortunate that I can. T is not precisely correct to say he did so gladly. I’ve been fortunate to have won An incredible team at work: Diana Levine that the magazine started 25 lots of awards, been given lots of accolades, but typeset the first issue of PRODUCE BUSINESS 25 years ago. Things never start and finish so Bruce’s line still resonates. years ago and still works beyond all reason to neatly; they are built on foundations that stretch What is the correct relationship between a make us look great. back through time and generations; they gain writer, an editor, a magazine and an industry? In Twenty-three years with Eric Nieman has inspiration from people and ideas the Fiddler on the Roof,thereisawonderfulsceneand taught me the power of his tenacity; 15 years “founders” of things never knew. a beautiful song that is a kind of brief medita- with Ellen Rosenthal has let me see how caring On the first day of the PMA Convention so tion on the nature of love. The story goes that transcends almost everything. many years ago, a small man with white hair Tevye, the husband and father of the household, Twenty-one years with Fran Gruskin as my came to our booth. He asked me if I was the has acquiesced in allowing his first two daugh- executive assistant has meant 21 years of know- grandson of Jacob Prevor. I explained that I was ters to marry the men they loved, rather than ing what trust and loyalty is all about. actually his great-grandson. The man told me submit, as was the custom, to an arranged mar- Plus the design duo of Jackie Tucker, 10 that back in the Great Depression, he was pen- riage based on money and family reputation. years, and Freddy Pulido, 13 years, has always niless, and my great-grandfather was the only As Tevye contemplates the new world in managed to make us look beautiful man who believed in him and gave him credit. which love, rather than prudence, becomes the Jackie LoMonte, 11 years, has kept us all Because he did so, the man said he had been standard for marriage, it goingwhereweneededtobe. able to build his business and live a good life. occurs to him that he Amy Shannon has taken on our newest proj- He wanted me to know. and his wife of 25 years ect: PerishableNews.com; Jennifer Kramer has As time has passed, I have come to receive had an arranged mar- come to understand produce as assistant editor; phone calls and letters, even visits from people After 25 riage: and Colleen Morelli has finally found a home at who started little wholesale or a retail shops or years… Tevye: Golde, I’m PRODUCE BUSINESS after learning each division in struck out on their own as brokers. Of all asking you a ques- our company. things, they said they were inspired by how we why talk tion... Do you love me? Of course, I couldn’t have the job I do, always launched PRODUCE BUSINESS and that they drew about Golde: Do I love you? flying off to some corner of the world to give a ideas and inspiration from what we do. For25years,I’ve speech, if I didn’t have a wife like Debbie, who Trade shows are a funny place for me. A love? washed your clothes, was willing to take on so much. My children, long time ago, I got accustomed to people Cooked your meals, William and Matthew, are a source of constant speaking to me as if we were best friends when Cleaned your house, inspiration and unspeakable joy. the truth was we had never met. I have always Given you children, Then, of course, I was born lucky. I was born written from the heart, and since I was all of milked the cow. in America and that is a substantial advantage 23-years-old when we launched this journey, After 25 years, why talk about love? to anyone. I also was born the son of Michael that means I’ve been editor-in-chief of PRODUCE Tevye: Golde, The first time I met you and Roslyn Prevor. Twenty-five years ago, I BUSINESS for more than half my life. Was on our wedding day… already knew I had great parents who had sup- So I’ve shared the great moments of my But my father and my mother ported me in every venture I had ever proposed adulthood, the business triumphs such as the Said we’d learn to love each other and whose unconditional love gave me the launch of the Perishable Pundit, the personal And now I’m asking, Golde courage to believe I could start with a dream pride in things such as my first piece in The Wall Do you love me? and build a business. Twenty-five years later, they Street Journal,orthefirsttimeIwasontheBBC Golde: I’myourwife are still my biggest fans and strongest support- or CNN or NPR. This year, my palpable enthu- Tevye: I know... But do you love me? ers, and I only hope I can show my own children siasm goes to a new industry event: The New Golde: Do I love him? the love they have always shown me. York Produce Show and Conference. For 25 years I’ve lived with him, I thought of that Fiddler on the Roof songasI But to write only of business would be a Fought with him, starved with him. sat down to write this because I asked myself falsehood, because when one has his own busi- Twenty-five years my bed is his... what I really thought about this industry after ness, there is inevitable overlap. So I’ve written If that’s not love, what is? 25 years. And I realized, like Golde, after 25 about the intimacies of adulthood: Debbie and They wind up acknowledging that they do years of thinking through each issue that has my wedding; the birth of my two sons, William love each other and in so doing suggest that love come along, 25 years of trying to help the indus- and Matthew; my longstanding friendship with is not so much a romantic fantasy but is try find the right decision, 25 years of identifying Ken Whitacre, with whom I launched this ven- expressed through the day-to-day reality of leaders and hoping — as our slogan adopted so ture so many years ago; the excruciating and engaging and caring. I think that is what Bruce many years ago demanded, to “initiate industry triumphant battle to save the life of my father. was saying in the expression, “earned my bones”. improvement” — well, as Golde would have Back when Bruce Peterson worked at Wal- So many have earned their bones with me. said, if that is not love, what is? Mart, I asked him, on exactly one occasion, to My brilliant college fraternity brother Ken Thanks for the opportunity. We’ve got big make a phone call to an industry member. He Whitacre has had 30 years and many causes to plans for the next 25. pb

10 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 2 RESEARCH PERSPECTIVE Success of the Fruits & Veggies — More Matters Initiative

BY ELIZABETH PIVONKA, PH.D., R.D., PRESIDENT AND CEO OF PRODUCE FOR BETTER HEALTH FOUNDATION

aunched in 2007, the Fruits & Veggies their consumption by 7 percent. The vegetable Kids’ Annual Cups per Capita — More Matters health initiative trend was a bit less positive, with those under VEGETABLES FRUIT replaced the long-standing 5 A Day age 6 consuming 3 percent more and those 6- 500 L -6% campaign. With a particular focus on moms, 12 consuming 2 percent more vegetables. So Fruits & Veggies — More Matters is dissemi- basically, children of mothers who are targeted 400 +11% nated through consumer influencers, including by the Fruits & Veggies — More Matters cam- 300 +2% industry, educators and health professionals. paign efforts are eating more fruits and vegeta- +7% -2% +3% PBH also provides insight to the industry about bles than they were 5 years ago. Conversely, in 200 fruits and vegetables through various surveys. populations where More Matters has NOT been focused, such as in the elderly, consumption has 100 decreased. Of course, this does not imply cause 0 and effect, but it is an interesting correlation, 2-5 6-12 13-17 2-5 6-12 13-17 Our studies indicate a especially since consumers typically eat more ‘99 ‘04 ‘09 fruits and vegetables as they age. NPD/Nutrient Intake Database; 2 YE Feb; % change ‘09 vs. ’04; huge opportunity for Kids’ avg. for ’09 – Veg: 292 (n/c), Fruit: 252 (+6%) growth at restaurants. Moms Are Finding It Easier To Feed Their Family Fruits And Vegetables cent of all menu items include at least one When Eating Out, Yet Only 11 Percent vegetable, and 15 percent of all vegetable Of All Fruits And Vegetables Are consumption is consumed in restaurants. To date, the Fruits & Veggies — More Mat- Consumed At Restaurants Together, only 11 percent of fruits and veg- ters effort has resulted in: Moms’ three largest reported barriers to get- etables are consumed at restaurants. • 167 million media impressions (no mul- ting their families to eat more fruits and veg- Here again, I’m pleased to see positive tipliers) etables include members of their families having movement, especially in quick service restau- • 5.78 billion retail impressions different fruit and vegetable likes and dislikes, rants. I believe that the addition of sliced • 68,000 average monthly Web site visitors needing new ideas about ways to prepare fruits apples and new salad options at McDonald’s, • 1,900 qualified products carrying the and vegetables, and not having a good range of for example, is one of the reasons moms can Fruits & Veggies — More Matters logo fruits and vegetables available in restaurants. report that fruits and vegetables are easier to • 45 percent of mothers who say they are Moms reported ease in getting their families find on menus. Obviously, with only 11 per- more likely to purchase a product with the to eat fruits and vegetables when eating out cent of all fruits and vegetables consumed at Fruits & Veggies — More Matters logo on it has grown. In 2010, mothers reported it easy to restaurants, there is a huge opportunity for • 66 percent of mothers who say they intend eat fruit (25 percent) and vegetables (17 per- growth in this venue. to serve their family more fruits and veggies cent) at a fast-food establishment, up from 19 Simply telling people to eat more fruits and Ultimately, success is measured by changes percent in 2008 for fruit and 8 percent for veg- vegetables is not enough to change behavior. in attitudes about, and consumption of, fruits etables. Thirty-seven percent of moms reported Consumers have to want to eat fruits and veg- and vegetables. To monitor change, PBH has it easy to get their families to eat fruit at restau- etables. In our case, we want to motivate new data obtained from two fruit and veg- rants generally, vs. 29 percent in 2008. Moms mothers to serve more to their families. Pro- etable related surveys. PBH’s annual Moms reported ease in getting vegetables at restau- viding information about how to use fruits survey is fielded by OnResearch annually, while rants declined, however, from 45 percent to 43 and vegetables and why it’s important to eat PBH’s State of the Plate research is conducted percent between 2008 and 2010. them is critical. Equally important, however, is by NPD Foodworld Group Research once every Despite the significant increases in moms changing what is available where people eat five years. Survey results are outlined below. reporting ease of getting families to eat more — on restaurant menus, at school and in fruit in restaurants, only 8.8 percent of all worksites. It is a culmination of all of these Fruit And Vegetable Consumption menu items include fruit, and only 3 percent efforts — and many others — that ultimately On The Rise In Younger Children of overall fruit consumption comes from will be needed to increase America’s fruit and Children under the age of 12 appear to be restaurants. Regarding vegetables, 44.8 per- vegetable consumption. pb eating more fruits and vegetables over the past 5 years. In fact, children less than 6 years old Produce for Better Health Foundation (PBH) is the consumer’s “go-to-source” for reliable information increased their fruit consumption by 11 per- about fruits and vegetables. PBH also helps focus industry marketing efforts and nutrition education resources by offering a single unifying message: Fruits & Veggies — More Matters. cent, and those children ages 6-12 increased

12 PRODUCE BUSINESS • OCTOBER 2010 COMMENTS & ANALYSIS One Point Of Light

BY JIM PREVOR, EDITOR-IN-CHIEF, PRODUCE BUSINESS

ll of the activity Dr. Pivonka accounts oranges and various easy-peelers available — displaying the More Matters logo, etc. is surely virtuous. To teach the when they had not been available before. With a miniscule annual budget compared Atruth...To attempt to make the This has also been a decade when Wal-Mart to McDonald’s and Coca-Cola, and with righteous choice become the easy choice... Supercenters spread across the country. more than 300 million Americans to influ- To believe that once people understand, they There is good data indicating that the presence, even if PBH is highly effective at will want to do the right thing...This is all ence of Wal-Mart Supercenters in a region spending money, it will be difficult for its reflective of a vision of society that combines exerts strong downward pressure on prices, efforts to stand out in national statistics. the most elevated thoughts of the ancient thus making produce, in all its forms, less That the nature of the beast doesn’t Greeks with that of the Enlightenment. expensive. There is no way to specifically allow for direct connections between PBH’s PBH has taken a two-track approach to determine if these types of changes in the efforts and changes in consumption does increase consumption. First, it acts to edu- supply base changed consumption patterns not argue against the program. It argues for cate and inform so people will know what orifPBHdid;orifitwasgrowingenthusi- humility in expectations. they ought to do; and, second, it acts to asm over Alice Waters’ Chez Panisse Foun- influence the industry and its menu-planning dation’s Edible Schoolyard project; or if it and merchandising so that it is easier for con- was public policy changes that made pro- sumers to do the right thing. duce more accessible for mothers on food Any effort that serves All of its activities are noble, but any stamps or WIC. to encourage more rational analyst of these types of programs We find the research regarding foodser- will always ask: Do they work? vice to be especially interesting, and it points produce availability This is one of those public policy ques- to a critique we have made of the is good for both the tions that are almost impossible to answer PMA/NRA/IFDA goal to double fresh produce because it is very difficult to run controlled consumption over a 10-year period: We industry and the experiments. There is no definitive way to need a good starting benchmark for this ini- country. say that consumption is higher today than it tiative. Whether 11 percent of produce con- would have been had the Produce for Better sumption happening at restaurants is good, Health Foundation never been created or its badorindifferentdependsonwhatper- programs been designed differently. centage of which meal-eating occasions are Just as the President’s Council on Physical It is indeed inspiring to read that parents included in the meals eaten at restaurants. Fitness has not made us a nation of of young children report that their children Roberta Cook of UC Davis often reports the Adonises, so PBH cannot be expected to have increased consumption of fruits and USDA says that roughly 10 percent of fresh radically change eating habits. It is, as Presi- vegetables. However, these kinds of results fruit and 20 percent of fresh vegetables are dent George H.W. Bush liked to say, just one have to be carefully studied for many years used in foodservice. This is just fresh, though, of many points of light that tries to make before we know how to assess them. One and foodservice, which includes everything things better. When industry members sup- possibility, for example, is that the efforts of from prisons to nursing homes to cruise port PBH, they are helping to make that one PBH are highly effective at changing atti- ships, is much broader than restaurants. point of light burn brighter. tudes. So young mothers learn what their Still, any effort that serves to encourage When one considers the research result children ought to eat and, feeling shame more produce availability is good for both that 45 percent of mothers respond to the that they fall short of this ideal, gild the lily the industry and the country. The problem, survey by saying that they are more likely to a bit when they speak to surveyors. In other once again, is that it is simply impossible to purchase product with the Fruits & Veggies words, real human beings sometimes fall know the degree to which McDonald’s — More Matters logo, it might be best to short of the Aristotlean ideal of “knowing updated salads or apple slice offerings were think of all the pressure on mothers today. equals doing.” motivated by PBH contacts. After all, it could Most work...Children and school are Of course, even if the statistics are fully just as well have been new technology cre- demanding...Husbands and significant oth- accurate, making a causal link to any par- ating better product options or a national ers are demanding...And most Moms want ticular program is difficult because there are wave of concern over obesity that made to do the right thing, yet find they often fall too many variables. So the past 10 years, McDonald’s executives fear the government short. So the More Matters logo can be like for example, has seen an explosion of would blame it for causing obesity. a high-five to Mom, a little point of light in imports of seedless citrus from South Africa, PBH depends, of course, not only on a tough day that says she is trying to do Chile and Australia — making Navel industry donations but industry cooperation what is best for her family.

OCTOBER 2010 • PRODUCE BUSINESS 13 THE FRUITS OF THOUGHT

AN ELECTION OF SIGNIFICANCE

By James Prevor President & Editor-in-Chief t is quite likely that Barack Obama will go kets of the reassurance of a properly adopted budget, which enables down in history as one of the most con- year-out projections to be done. Isequential Presidents the nation has ever On January 1, 2011, the Bush tax cuts expire. There is a great con- had. Depending on how this current election sensus in Congress that now is not a good time to raise anyone’s taxes, falls, however, it might be that the reason he so a two-year extension would pass easily with substantial bi-partisan turns out to be so significant makes it an support. President Obama and the Democratic leadership in Congress honor on which he would have rather want to avoid any bill that could provide any benefit to “the rich” and passed. so won’t even bring up a bill for fear Democrats would amend it to Whatever one thinks about the President vote the mood of the country. or his policies, one notes in the country a The impact on the industry – and the country – will be substantial. great awakening. There has been a sense in which the President has There are many different increases but, as an example, the tax on div- accomplished a great deal. He saw enacted a giant, trillion-dollar Stim- idends will go from a maximum of 15 percent to 39.6 percent, an ulus Bill that changed forever the baseline on which federal expendi- increase of 164 percent. In 2013, when the health care law kicks in, an tures are calculated; against enormous opposition, he spearedheaded additional tax of 3.8 percent will go into effect. So the tax on dividends his signature Health Care Bill. will almost triple in 24 months. Yet, for each action in politics, there is a reaction and the very mag- Theimpactonbusinessistwo-fold.Ononesideitwillmakeit nitude of President Obama’s success has brought forth an enormous harder for businesses to raise equity. After all, the purpose of investing reaction, some of it from an inabusinessistoeitherreceive inchoate group called “The Tea dividends or capital gains. The Party.” What is interesting about boost in taxes on both – the top the Tea Party is that most of it’s It is easy to identify specific issues capital gains rate will increase by “members” have never partici- a third – lowers the value of every pated in a protest march or rally with the President’s programs that are of share of stock. before. The overwhelming major- great concern to the produce industry. Thereisanotherimpact, ity have jobs. They even clean up though, and that is the consumer after themselves and leave the side. The higher the taxes are, the march sites clean. It is the politi- more likely are consumers to do cal awakening of the bourgeoisie. things for themselves. If there are In America, politics were traditionally less ideological than in many no taxes, then a $50 dinner costs $50. If you are buying dinner with other countries. The Democratic Party controlled the South, the most your dividend income next year and have to pay city and state taxes, conservative region of the country. In contrast, the northeast was a plus the new higher Federal levy, you may need $100 in income to go Republican bastion, but these Republicans – Nelson Rockefeller, Jacob to the restaurant. Don’t be surprised to see people stay home. Javits, Henry Cabot Lodge, Jr. — if not precisely liberals, certainly Many see President Obama as seeking a “Europeanization” of added a moderate, internationalist weight to the Republican party. As America, with an expectation that the government will take care of the a result, Americans could watch elections, if not precisely with disin- people and manage the economy. A lot of Americans recoil; they terest, with the knowledge that, generally speaking, little would radi- believe in American exceptionalism – they see the United States as dis- cally change even if the control of Congress switched hands. tinct from the European ethos – where rewards are mostly market- This situation no longer applies. The Stimulus Bill, for example, was determined, where entrepreneurs are national heroes, where those who a warning flag. Such a substantial piece of legislation was passed with achieve are praised, not demonized. not a single Republican vote in the House and only three Republicans Arthur C. Brooks, the president of the Washington, DC-based in the Senate. Then came the Health Care Reform Bill, and this enor- American Enterprise Institute, argues that approximately 70 percent of mous piece of legislation was passed without a single Republican vote. Americans favor this vision of the country. The other 30 percent, how- Not only was Health Care passed without any Republican support, ever, are ensconced in highly influential posts in universities, journal- national polls indicated it was – and remains – unpopular legislation. ism, entertainment, etc., and have had substantial influence, especially Although one can sometimes pass legislation the public objects to, pol- on the young. So it is not clear precisely how the battle over the future itics is mostly about persuasion, and if one fails to persuade the peo- of America will come out. ple but simply overrides their wishes, a lot of resentment will ensue. President Obama has led us down a path, but his efforts have It is easy to identify specific issues with the President’s programs aroused opposition, whether by leading America on his proposed jour- that are of great concern to the produce industry. Congress adjourned neyorbyarousinga“TeaParty”thatfightsbacktheeffortandmoves without passing a budget, for the very first time since the budget the country in the opposite direction. President Obama will be seen to process was adopted in 1974 – thus depriving businesses and the mar- future generations as influential indeed. pb

14 PRODUCE BUSINESS • OCTOBER 2010 VISIT USATPMA BOOTH #2167

Reader Service # 53 PRODUCE WATCH TRANSITIONS GLOBAL ORGANIC SPECIALTY SOURCE INC. RPE SARASOTA, FL BANCROFT, WI Carl Ream was appointed to director of busi- Darren White has joined the sales staff of ness development. With more than 35 years of RPE’s newly opened Colorado branch in Monte experience in the produce industry, he has Vista, CO. He previously spent nine years with worked with both retailers and growers. Farm Fresh, where he helped earn the 2009 Colorado Governor’s Award for Excellence in Exporting after establishing a potato export program into Mexico.

Deborah Bloomquist was appointed to director John Kennicker was hired as research techni- of sales. She has more than 20 years of sales cian to assist senior agronomist, Michael experience, including eight years in a leader- Copas, in crop research. He received his Mas- ship role. ter’s Degree in plant breeding and genetics at North Dakota State University and most recently worked at the Iowa State University Extension Office, where he performed a variety of research and educational duties.

SUN PACIFIC MARKETING Roland Rieflin has joined the transportation department. He joins RPE from G&P Distribut- LOS ANGELES, CA ing where he spent the last year as operations Robin Osterhues is the new director of market- manager. He also has 13 years of previous ing. She will be responsible for developing and experience with McDermid Transportation as a coordinating the company’s marketing and pro- freight manager. motional activities. She previously worked as director of business development with Kings- burg Orchards in Kingsburg, CA, and director of corporate marketing with Calavo Growers Inc., in Santa Paula, CA.

DATEPAC LLC MAMAMIA PRODUCE YUMA, AZ EAST RUTHERFORD, NJ Edward O’Malley was named president and Joseph Sferrazza has joined the company as CEO. He has more than 30 years of global sales manager. He previously worked as experience in marketing, operations and sup- regional sales manager at Supreme Cuts LLC. ply chain management with fresh produce and He has nearly 20 years of experience in pro- packaged foods. He previously held the posi- duce sales and he has worked with several tion of vice president of supply chain for major produce growers, processors and dis- Albert’s Organics as well as other executive tributors. Since joining MamaMia in mid-July, positions with Dole Fresh Vegetables, Fresh he has visited chain stores and major distrib- Express and Paramount Farms. utors in the United States and Canada.

FIRSTFRUITS MARKETING NOVELLE CONSULTING INC. YAKIMA, WA LAGUNA BEACH, CA Arnie Raubolt was added to the sales team. Erich Hinrichs has joined the company as a He will be responsible for new and existing consultant. He has many years of experience domestic retail, wholesale and foodservice as an expert consultant in Europe, Scandi- accounts. He has more than 30 years of retail navia and Russia fresh produce operations. experience, including sales, merchandising He previously worked as general sales man- and procurement. He most recently was the ager of a major global produce company in field buyer for apples, pears and cherries at Europe where he directed sales and market- Albertson’s Supervalu field-buying office. ing, and coordinated shipping and discharge programs to meet customer requirements.

MOR USA INC. John Musser has joined the company as GREEN BROOK, NJ a consultant. He has 30 years of experi- Shaleen Heffernan was hired as a sales man- ence in fresh produce in supply chain ager. She will be handling the Israeli/Palestin- management, including logistics, distri- ian/Nicaraguan herb program as well as bution and production operations, handling all upcoming sales of Israeli varieties grower relations and finance. He has of mixed bell peppers grown in Mexico, expertise in structuring and refining Colombian fresh gooseberries and Israeli vari- complex multifunctional organizations ety Kirby cucumbers from Mexico. She will and in transferring hands-on experience work out of the company’s New York office. to advisory and interim situations.

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]

16 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 222 PRODUCE WATCH NEW PRODUCTS RECIPE-READY PEELED GARLIC VALUE-LINE PRODUCE The Garlic Co., Bakersfield, CA, has introduced Misionero Vegetables, Gonzalez, CA, has California-grown peeled garlic in vacuum- added a new and innovative value line of fresh packed, recipe-ready pouches that extend vegetables designed with a price point target- shelf-life. Six individual pouches are packaged ing consumers with less disposable income. in a 3-oz., recyclable, resealable plastic master Premium Shreds is an innovative salad mix bags. Both are available in organic and blended for optimum flavor, while Petite Hearts conventional varieties. work well as a topper on tacos, enchiladas, Reader Service Number 300 wraps and sandwiches. Reader Service Number 301

ECO-FRIENDLY JUICE RINSE-AND-SERVE GRAPE CONTAINER Noble Juice, Winter Haven, FL, has introduced Pandol Bros. Inc., Delano, CA, has launched its Tree to Bottle, a new line of citrus juices new rinse-and-serve packaging nationwide. bottled in an innovative plastic material called The patent-pending package is a clear plastic Inego, which is made from plants instead container designed to be held directly under a of oil. Noble packages its Bottle Orange and kitchen faucet to allow for thorough rinsing of Grapefruit Juice in eco-friendly packaging, which grapes. The packaging features step-by-step is 100 percent compostable and recyclable. The instructions and Wash-n-Go graphics communi- bottle and label use 75 percent less green- cating the rinse-and-serve feature. house gasses compared to oil-based plastics. Reader Service Number 303 Reader Service Number 302

PREMIUM PERUVIAN SWEET ONIONS BABY CARROTS Direct Source Marketing, Mount Kisco, NY, BRANDING CAMPAIGN has introduced premium Peruvian sweet Bolthouse Farms, Bakersfield, CA, along onions, which are certified and lab-tested with a new alliance of carrot growers for sweetness. They are available now dubbed “A Bunch of Carrot Farmers” through January. have launched an advertising and Reader Service Number 304 marketing campaign that satires infamous junk-food marketing. The “Eat ‘em Like Junk Food” campaign includes new packaging and television spots. Reader Service Number 305

VITAMIN D MUSHROOMS POTATO LINES WITH Highline Mushrooms, Leamington, Ontario, EYE-CATCHING PACKAGING Canada, has introduced a new lineup of Huntsinger Farms, Hegins, PA, has launched Vitamin D-enhanced mushrooms available three new products lines: Dinner Delights, in two delicious formats: 6-oz. Sliced Supper Supremes and Petitetoes. Designed to Portabella and 6-oz. Grill Caps. A 3-oz. suit the needs of today’s consumers, the inno- serving provides more than 100 percent of vative packaging includes an example of what the daily Vitamin D requirements. Highline each variety is “especially good for,” such as Mushrooms is the first Canadian mush- baking, mashing with skins on and roasting room company to introduce Vitamin D mushrooms to its product lineup. and mashing. Reader Service Number 306 Reader Service Number 307 ANNOUNCEMENTS PRPM UNVEILS NEW NAME, LOGO MARZETTI LAUNCHES SWEEPSTAKES The Philadelphia Regional Produce Marzetti, Columbus, OH, is promoting Market (PRPM), Philadelphia, PA, has Marzetti Caramel Dip with the launch of its introduced a new name and logo uDip Sweepstakes, a collection of creative preceding the move from the market’s caramel-themed contests and games. current location to a new, state-of-the- Consumers can enter the package design, art facility, now planned for January photo and recipe contests for a chance to 2011. The name was developed to win a variety of artistic prizes, including position the new facility as a wholesale produce market capable $5,000 for their local school’s art program of servicing customers within a 500-mile radius. and Canon digital cameras. Reader Service Number 308 Reader Service Number 309

CRUNCH PAK MARKS 10 YEARS BROETJE ORCHARDS Crunch Pak, Cashmere, WA, celebrated HONORED BY NCSI AMERICAS 10 years of business. Founded in 2000, Broetje Orchards, Yakima, WA, was Crunch Pak began as an idea with a group honored with the 2010 Chairman’s of apple growers in Washington State who Award from NCSI Americas, a believed that people would eat more apples Seattle, WA-based global certifica- if they were easier to eat. It developed tion body and registrar. Broetje technology to treat the apples and maintain Orchards was nominated and selected based on its commitment and freshness after slicing, as well as breathable leadership in the areas of food safety and social responsibility. packaging to ensure optimum quality. Reader Service Number 311 Reader Service Number 310

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]

18 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 72 PRODUCE WATCH ANNOUNCEMENTS TASTEFUL SELECTIONS USAPPLE DEBUTS APPLE-INSPIRED RECIPES LAUNCHES RETAIL CAMPAIGN U.S. Apple Association, Vienna, VA, introduced Tasteful Selections, Minneapolis, MN, seven new video segments on its new YouTube showcased its specialty potatoes in page, highlighting five apple-inspired dishes, the Minneapolis-St. Paul metro area including apple-cilantro salsa, apple-halibut in all Lund’s and Byerly’s stores when kabobs and cheddar and apple paninis. The it kicked off its “Create Ooh Ahh segments discuss how to enjoy apples and Moments” campaign. The company apple products as part of a healthful lifestyle. highlighted consumer reactions to the new line in a YouTube Reader Service Number 313 video. Tasteful Selections is one of RPE’s many brands. Reader Service Number 312

FAIR TRADE CITRUS FROM SOUTH AFRICA ALSUM FARMS & PRODUCE CELEBRATES NEW NAME COMES TO MANHATTAN Alsum Farms & Produce Inc., Fries- Fair Trade-certified summer citrus from South land, WI, celebrated the introduction Africa was recently sold at an upscale super- of its new corporate name and logo. market in Manhattan. The Navel oranges A leading grower/repacker of pota- were produced on a farm about two hours toes and onions and full-line fruit northwest of Cape Town that is co-owned by and vegetable distributor, Alsum a citrus producer and his employees. Fair changed its name to better reflect its Trade aims to help producers in developing long-term growth plans and commit- countries obtain better trading conditions and promote sustainability. ment to locally grown produce. Reader Service Number 314 Reader Service Number 315

WHOLLY GUACAMOLE, ABC TELEVISION CAC SPREADS NUTRITIONAL PRESENT $10 REBATE MESSAGE ABOUT AVOCADOS Wholly Guacamole, Fort Worth, TX, teamed up The California Avocado Commission, Irvine, CA, with ABC TV on DVD to present “Stay In, Tune is encouraging shopper demand for California In, Dip In,” a $10 rebate offer focusing on “a avocados by spreading nutrition messages night in” with fun, healthful food and top tele- through consumer media and retailer outreach. vision entertainment from ABC TV on DVD. Key messages include information about the From now until the end of October, boxes of use of avocados as a fat replacement in Wholly Guacamole Classic will sport the $10 baking and avocados as a first food for ABC TV on DVD rebate design. babies and toddlers. Reader Service Number 316 Reader Service Number 317

OLIVIA’S ORGANICS PROMOTE HARVILL’S PRODUCE JOINS PRO*ACT SALADS AS HEALTHFUL LUNCH Harvill’s Produce, Orlando, FL, has joined Olivia’s Organics, Chelsea, MA, are encouraging Monterey, CA-based Pro*Act’s national parents to expand their children’s minds and distribution network. Harvill services palates by creating Olivia’s Organics healthful customers in a 70-mile radius of Orlando, recipes that include crispy romaine, arugula or and plans to begin construction in late spinach. Available on the company’s Web site, 2010/early 2011 on a new distribution the recipes include Olivia’s Pesto Chicken facility. Becoming part of Pro*Act will Salad or Asian Salad with Ginger Dressing. allow Harvill to increase the benefits it Reader Service Number 318 provides its customers. Reader Service Number 319

COLORFUL HARVEST HARVESTS JP DULCICH & SONS CELEBRATES 50TH RUBY JEWEL SWEET RED CORN ANNIVERSARY Colorful Harvest, Salinas, CA, is harvesting its JP Dulcich & Sons celebrated its 50th anniver- new crop of Ruby Jewel Sweet Red Corn near sary this year, but made it a priority to focus Merced, in California’s Great Central Valley. The on creating a quality, seamless look and feel Ruby Jewel Sweet Red Corn is a special variety for all of its table grape products, beginning developed through traditional plant breeding with Pretty Lady and Harvest Hobgoblin bags. methods and grown only by Colorful Harvest. In addition to the new bag design, signage The corn’s natural red pigment is actually a danglers will also be made available to powerful anti-oxidant, called anthocyanin. retailers to help promote fall sales. Reader Service Number 320 Reader Service Number 321

OCEAN MIST FARMS SUPPORTS DRISCOLL’S AWARDS TOP HARTNELL COLLEGE AG INSTITUTE BERRY CHEF AWARD Ocean Mist Farms, Castroville, CA, is Driscoll’s, Watsonville, CA, named executive supporting the expanded agriculture pro- chef/partner John Carver of Eddie V’s Restau- gram at Hartnell College in Salinas with a rant Inc., Scottsdale, AZ, as its Top Berry gift of $100,000. The company will have Chef of the year. He earned this accolade a classroom named for it in the 40,000 with his innovative recipe, Hot & Crispy square-foot Center for Advanced Technol- Blackberry Ravioli with Chocolate Fondue. ogy building now under construction and Driscoll’s felt Carver’s recipe was unique, scheduled to open in January, 2011. delivering unexpected flavor and texture. Reader Service Number 322 Reader Service Number 323

20 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 32 PRODUCE WATCH ANNOUNCEMENTS CUYAMA ORCHARDS EXPANDS ITS PERI & SONS FARMS LAUNCHES SPECIALTY APPLE PROGRAMS NEW WEB SITE Cuyama Orchards, Cuyama, CA, has expanded Peri & Sons Farms, Yerington, NV, has launched its Heirloom and specialty apple programs for a newly redesigned and expanded Web site in the 2010 season and expects a bumper crop. order to showcase the company’s enduring 1 The Crimson Gold is a 1 ⁄4-inch Heirloom apple farming history, which spans over a hundred bursting with flavor. It is a sweet, tart and years and three generations. The site also juicy apple packed in 1-lb. bags as well as focuses on communicating the company’s volume-filled foodservice packs. progressive philosophy on food safety and Reader Service Number 324 traceability. Reader Service Number 325

SUN WORLD, PANDOL BROS. VOC BREAKS CONSUMER HELP KIDS EAT WELL CONTEST RECORDS Sun World, Bakersfield, CA, and Pandol The Vidalia Onion Committee, Vidalia, GA, Bros., Delano, CA, have partnered with partnered with DreamWorks Animation, Panama-Buena Vista Unified School Dis- SKG Inc., to promote the original sweet trict to pilot a salad bar program at onion in conjunction with the release of Stonecreek Junior High. A special ribbon Shrek Forever After, the last installment cutting ceremony was held on the first in the Shrek movie series. Nearly 43,000 day of school at Stonecreek to kick off the program, which aims Vidalia onion fans played to win on the to increase consumption of fruits and vegetables among students. newly revamped VidaliaOnion.org Web site. Reader Service Number 326 Reader Service Number 327

MISIONERO REBRANDS GARDEN PBH LAUNCHES NEW INTERACTIVE TOOL CUTS PRODUCT LINE Produce For Better Health Foundation, Misionero Vegetables, Gonzales, CA, is Hockessin, DE, has launched a new interactive rebranding its conventional line of retail tool on the Fruits & Veggies — More Matters lettuce leaf products from Garden Cuts to consumer Web site. The tool contains informa- Garden Life. The new logo, which features the tion on fruit- and veggie-related activities, words, “Garden Life,” with a leaf merging from promotions, contests, store tours, cooking the soil, took six months to develop. Garden classes and other events to help extend Life conveys a global message to Misionero’s consumer marketing or education efforts. customers and consumers. Reader Service Number 329 Reader Service Number 328

NJDA SECRETARY VISITS BJ’S WHOLESALE MANN PACKING TRANSITIONS INTO STORE TO PROMOTE JERSEY FRESH FALL WITH MULTIPLE PROMOTIONS The New Jersey Department of Agriculture, Mann Packing, Salinas, CA, is offering multiple pro- Trenton, NJ, has partnered with BJ’s Wholesale motions this fall. Beginning October 10, consumers Club to promote Jersey Fresh produce. New will save $0.55 when they buy any two packages of Jersey Assistant Secretary of Agriculture, Alfred Mann’s core vegetable items such as Broccoli Wokly, Murray, recently visited BJ’s in Manahawkin, as Broccoli & Cauliflower or Vegetable Medley. Also in the club offered loose Jersey Fresh produce for October, Mann will offer an instant redeemable the first time. coupon of $0.55 with the purchase of one of Reader Service Number 330 Mann’s sweet potato or Butternut squash products. Reader Service Number 331

CAIA KICKS OFF SEASON WITH LOBUE CITRUS ANNOUNCES NEW AYSO NATIONAL GAMES NAME, PLANT UPGRADES The Chilean Avocado Importers Association, LoBue Citrus, Lindsay, CA, has changed its name Aptos, CA, teamed up with American Youth from LoBue Bros. Inc. to LoBue Citrus. The new Soccer Organization’s (AYSO) 2010 National identity is marked with an updated logo that fea- Games tournament for children and young tures an orange wedge anchored on a field of blue, adults in Wellington, FL. CAIA educated along with the company’s tagline, “Legacy of Excel- more than 10,000 youth soccer partici- lence.” LoBue has also added new cooler space and pants, coaches, parents and volunteers about avocados from Chile while rebuilt several areas of its packing line to soften the emphasizing the importance of healthful eating and exercise. production line and increase productivity and quality control. Reader Service Number 332 Reader Service Number 333

PURFRESH HELPS CHILEAN MCDILL ASSOCIATES DEVELOPS PRODUCE GROWERS, EXPORTERS GROWING & GIVING 2010 STAY COMPETITIVE McDill Associates, Soquel, CA, developed Purfresh, Fremont, CA, announced the availability Growing & Giving 2010, which raised more of its cold chain solutions — Purfresh Cold Stor- than $18,000 in donations to support age, Purfresh Wash and PurfreshTransport — all youth. The event was hosted at Tanimura integrated with Intellipur, the company’s next- & Antle headquarters in Spreckels, CA, and generation information management tool, in attracted more than 350 attendees, includ- Chile. Purfresh solutions have been proven to maintain quality, reduce ing foodservice buyers and executives from chemical usage, extend shelf-life and enhance food safety. leading grower-shippers. Reader Service Number 334 Reader Service Number 335

CORRECTION: In the August, 2010, issue a photo caption on page 75 should have read, Darrel Miller, Mark Martin, Tristan Schmit and Brent Schmit, Eclipse Dist. Inc. PRODUCE BUSINESS regrets the error.

22 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 88 Dissecting The Meaning Of Local, Sustainable And Flavorful FROM JIM PREVOR’S PERISHABLE PUNDIT 9.10.2010

e’ve written many pieces about It will also take some investment from ment laid out in the way it is in this letter. the “local” phenomenon. So the industry, which will require some The first thing we note is that the letter Wwhen PMA’s Annual Foodser- time to build up. conflates three different things without vice Conference focused on this matter, we The California-based supply chain explanation. We are told that consumers wrote a piece titled, Everyone Is In Favor of represented at the PMA panel was one want things that are local, things that are Better Flavor, But Is “Local” A Solution Or example of an emerging trend. UC Davis sustainable and things that are flavorful. An Ideology? Dining Services is taking seriously the Even accepting that this is all true, it is not That brought a lengthy letter from a University-wide goal of “reducing the clear why we should assume these things noted academic that we published under environmental impact of food purchases will always travel together. When it comes the title, Tom Reardon of Michigan State and dining operations while maintaining to flavor, isn’t it at least as logical to think University Speaks Out: Wither Local. accessibility and affordability for all stu- that the most flavorful items will come from Now we are pleased to publish a letter dents.” It is, therefore, documenting its the peak of the season — wherever that from the two UC Davis faculty members efforts to meet the University of Califor- might be in the world — at any given time? who moderated the original panel discussion nia’s goal of having its food service pro- When it comes to sustainability — what- at PMA’s Foodservice Conference: grams procure 20 percent sustainable ever definition one wants to use — does it Mr. Prevor must have gotten an “A” food products by the year 2020. make any sense to think that the most sus- in his microeconomics class since he Yes, “sustainable” and “local” still tainable choice will always be within 50 clearly articulated the conventional the- need more specificity in many places. miles of a particular institution? ories of economics, including that of We would welcome your ideas. In other words, if UC Davis said it comparative advantage. Comparative We commend the PMA for bringing wished to procure only fruit with a high Brix advantage, however, supposes that mar- this topic to the forefront of its confer- content because that corresponds to flavor, kets already exist. The topic that this ence and talking about how the industry and, if it turned out that only fruit grown year’s PMA convention bravely tackled can offer more choices, including within 50 miles of the UC Davis campus was the emergence of new markets to “local.” This is, in fact, what offering met this flavor standard, then, of course, it respond to a burgeoning consumer “local” and “sustainable” products is all would be reasonable for UC Davis to pro- demand for more local, sustainable and about. It is not about narrowing our cure this local produce. This is, however, flavorful food. options, like Mr. Prevor seems to believe. pure conjecture. Nobody presented any As the opening speakers admitted, the Consumer demand for a wide range evidence that, in fact, locally grown product industry has focused on appearance for of healthful, flavorful produce, including is more flavorful, much less that produce many years; now, some industry members local, and the willingness of the industry grown from 50 to 100 miles away from are beginning to examine what it would to respond, can keep this new market campus is less flavorful than produce grown take to produce and distribute food with working and growing for everyone. Fur- within 50 miles from campus. flavor and “the face of the farmer.” thermore, expanding offerings of locally The same point goes on sustainability. Data from the USDA’s 2007 Census of grown produce can support, rather than Now there are many definitions, and as UC Agriculture indicate that the dollar value undermine, the PMA’s Foodservice 2020 Davis is entitled to decide its own priorities of agricultural products marketed directly Initiative with its goal to double the use — minimize carbon output, minimize water by U.S. farmers to consumers increased of fresh produce in foodservice by 2020. usage, ensure proper treatment of farm by 49 percent between 2002 and 2007 — Shermain Hardesty, Extension Econ- hands, whatever UC Davis wants to make to $1.2 billion. Much of this growth was omist and Lecturer, Department of its priority — that is its right. Intellectually, attributable to sales at farmer’s markets. Agricultural and Resource Economics, though, the school has no standing if all it Many consumers are willing to trade off University of California, Davis is going to do is assume that product grown perfect appearance and shelf-life, as well — Gail Feenstra, Food Systems Coordi- between 50 and 100 miles of campus is as low prices, in order to have more fla- nator, Sustainable Agriculture Research somehow automatically more sustainable vorful produce provided by foodservice & Education Program “SAREP,” Univer- than product grown between 100 miles operations (and well as grocers). Provid- sity of California, Davis and 150 miles from campus. ing these new, local products to con- We greatly appreciate that Dr. Hardesty The second point we observe is that the sumers will require new (or renewed) and Dr. Feenstra took time to write. This is good professors place great emphasis on infrastructure, new knowledge and train- an important issue for the industry, and their the fact that direct-to-consumer sales are ing about maintaining food quality from expertise can enlighten us all. Yet we confess increasing, especially at farmer’s markets, farm to fork, as Tina Fitzgerald remarked. to being confused when reading the argu- which are increasing quickly in number. This

24 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 44 FROM JIM PREVOR’S PERISHABLE PUNDIT 9.10.2010 is true and we have previously dealt with dining operations while maintaining acces- service. We think he was precisely correct. the point. sibility and affordability for all students.” Dr. Hardesty and Dr. Feenstra flatter us Yet we are not certain that the signifi- The question is whether buying local and, by asking for our advice, and the advice cance of the increase is what Drs. Hardesty specifically, along the five-tier purchasing would be this: Local and sustainable are and Feenstra wish to claim. Almost all guidelines enunciated at the conference both code words for something else. If one farmer’s markets are political creatures in actually has anything to do with achieving wants to simply pander to people who like which the streets or the public parks are these goals. These elaborate purchasing those words, that is fine. If, however, one made available to farmers, typically for a metrics only would make some sense if we wants to procure to achieve specific envi- tiny fraction of the rent that these spaces assume that commercial transportation of ronmental, social or culinary goals, then could bring if auctioned off to the highest produce is uniquely responsible for envi- define those explicitly — make meeting bidder. That failure to charge the farmers ronmental harm. Yet there is no evidence those goals the prerequisite for a purchase the going rate for the property represents for such a thing. order. Setting the criteria as concentric rings a public subsidy to farmer’s markets. There is a lot of evidence that personal of locality that may or may not achieve any Yet even with such subsidies, this is a preferences are being elevated to pur- actual goals allows for sloppy thinking that very small market. That $1.2 billion our cor- chasing metrics. Although we might no UC Davis professor would ever allow in respondents site includes not just fresh pro- defend to the death the right of a private the classroom. duce, but all agricultural products sold party to purchase based on whim, a pub- We would like to add one more point. direct to consumers. Still, $1.2 billion is a lic institution such as UC Davis ought to Namely that the Pundit’s family functioned big number, but the very same report tells be held to a higher standard. Even the as a wholesaler, auction buyer and much us that market value of all agricultural prod- seemingly unobjectionable goal actually else in the produce industry for four gener- ucts sold in 2007 was over $297 billion! raises more questions than it answers. ations in the United States and many gen- Even if we limit it to just fruits, vegetables, Why, after all, are environmental goals the erations more back in Russia. Although we tree nuts, berries, melons, potatoes and one thing elevated among all other goals? came to be substantial exporters and sweet potatoes, we have sales of in excess What if some other school said its goal importers, we were always helping local of $33 billion. was to “maximally increase the amount of growers market their crop. The notion that selling local produce is some unheard-of Although we might defend to the adventure, some uniquely “new market” that somehow repeals the laws of compar- death the right of a private party to ative advantage just isn’t true. purchase based on whim, a public Most local growing that died out did so for good reason. There were other places institution such as UC Davis ought where the crops could be produced more to be held to a higher standard. efficiently. For the most part, the revival of local growing depends on transportation prices. If high oil prices lead to expensive The third point being made is that since employment generated by food purchases transport costs, then everyone will love the conference was in California, it made for the dining operations while maintain- local. If it is cheaper to produce somewhere sense to have only Californians on the ing accessibility and affordability for all else and bring in the product, that is what panel. We can concede on this matter, as students?” Is this OK? is likely to happen in most cases. there is, of course, nothing wrong with To us this is the key. If what Dr. Feenstra We support offering consumers a choice, drawing on the expertise of the local com- and Dr. Hardesty are saying is simply that if consumers want a choice. So we have no munity. We are more concerned, however, lots of people want to buy local and so the objection to local, for the same reason we with intellectual diversity than geographic food chain — producers, distributors, retail- have no objection to selling organic produce, diversity, and we think the audience would ers, restaurants, etc. — should make it avail- imported produce, greenhouse-grown pro- have gotten more out of the session if there able to them, that is unobjectionable to us. duce or branded produce. Consumers who was someone up there to present the other But we don’t think the advocates for want options should be given them. But we side of the issue. In fact, we are sure that local want to say that this is just an au object if an organic producer makes Drs. Hardesty and Feenstra’s colleague at courant style or an irrational attachment; unproven claims that eating organic produce UC Davis, Roberta Cook, who has worked they want to make serious intellectual extends the human lifespan, and we object extensively on international trade issues, claims. Our point was that the specific to claims that local is inherently more deli- would have been willing to stand up and claims made in the seminar are either not cious and more sustainable. point out why the panelist who believed true or unproven. They don’t stand up to Being a foodie and wanting local may keeping all the money in town was a great intellectual scrutiny. just add to the stock of harmless public fun, economic theory was actually going to The intelligent and incisive gentleman in but here at the Pundit, and we trust at UC impoverish us all. the back of the room at the panel discus- Davis, we will look to the facts before pro- The fourth point is that the authors sion who asked “why local” and who sug- claiming an action to have special virtue. explain that UC Davis Dining wants to be gested we look at “metrics” was Jorge Many thanks to Dr. Shermain Hardestry serious about its goal of “reducing the envi- Hernandez, senior vice president of food and Dr. Gail Feenstra, both of UC Davis, for ronmental impact of food purchases and safety and quality assurance for US Food- weighing in on such an important issue.

26 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 204 LETTERS TO THE EDITOR

ARTICLES USED TO ‘RAMP UP ever. You do the research on your stories better households in the bottom quartile, or quintile, SALES AND PRESENTATIONS’ than the newspapers and your stories are more some with WIC or Food Stamp benefits, some I truly enjoyed the May 2010 PRODUCE BUSINESS factual and interesting than ever. without? Shadow them through the store and Bible. It had more relevance to retail than I have Keep up the good work. You are the BEST! then do the extreme makeover. noticed for some time. The articles that I will use Joseph M. Mercurio Example: You bought 8 oz. of baby carrots President & C.E.O. to ramp up sales and presentations with the 37 for 99 cents. Why didn’t you buy 2 lbs. for $1.29 Joseph Mercurio Produce Corp. stores that I work with are: Columbus, OH or 5 lbs. for $1.99 and cut them yourself? Do • Safeway Prototype “Leeds” the Way you know how to store potatoes so you can buy • Take Stock in Ripened Fruit Programs MYSTERY SHOPPER RECOMMENDATION on ad or in bulk? Maybe some nutritional, cook- • Despite Obstacles, Organics Continue to Among the things I brought to read on my ing and food storage tips. Gain Favor with Consumers airplane rides and layovers this week — the I bet Second Harvest (or whatever they call • Mangos Continue to be a March PB Mystery Shopper Report issue was in themselves now) would be all over it. Teach Growing Segment the stack. them how to get stores to match ads (I saw a •10WaystoSellMore Using your recipe-driven approach — one woman in Vegas work over a Wal-Mart clerk for Stone Fruit Year-round with hard questions — requires your mystery 15 minutes one time), or the difference in stores. • Fresh Produce and Variety Can Drive Store shoppers to go to the better stores. You could Home Ec meets Extreme Makeover meets Con- Traffic and Build Loyalty title the article, “Don’t Try This at Aldi’s.” sumer Reports meets Mother Teresa … or some- • Tale of Two Chains Is it time to take a break from “the upper thing like that. Thanks for the articles. So much we, of crust yuppie with a food channel addiction — Maybe a Congressperson would invite you to course, do and have heard before. But your tips must have purple truffles from the Himalayas for testify before Congress a la Steven Colbert. and reminders make us better. a recipe”? Could we see a pendulum swing in John Pandol Vice President Special Projects Ken Stephens the direction of the poverty package? Produce Supervisor Pandol Bros. Inc. Hy-Vee, Inc. As we are all talking about health and salad Delano, CA West Des Moines, IA bars in schools and the challenge of getting healthy food on a budget, could we do an Letters to the Editor should be mailed to MORE FACTUAL AND INTERESTING “extreme makeover” of the poor shopper? How PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481 I enjoy reading your paper more now than about shadowing someone who represents or email: [email protected] Reader Service # 224

28 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 116 INTRODUCTION BY JIM PREVOR EDITOR-IN-CHIEF

Twenty-Five INNOVATIONS THAT SHAPED THE INDUSTRY

t has been said that journalism is the first rough-draft of history. In this issue, we start with a discussion of five of the innova- If so, it seemed fitting after 25 years of rough drafts, to stop and tions: Communication Technology, Consolidation, Value-Added, Isee what it has all added up to. Club Stores & Supercenter and Global Trade. We’ll both look at Yet we didn’t want to stop there. Our interest in the past is moti- how industry leaders perceive these issues as having shaped the vated by our desire to build a better future. Thus, we sought to past 25 years and look at some “Future Notes” as to the influence look at the past with an eye on the future and so, with this issue, these innovations and others will continue to hold for the indus- we begin a journey back to the future. try in the years to come. We’ve been surveying industry leaders as to their assessment of We will continue to roll out this discussion over the next four what the top 25 most transformational innovations and changes issues of PRODUCE BUSINESS, covering five innovations per month. were during the past quarter century. The consensus congealed Please feel free to weigh in, both on what we present here and on around these innovations, presented in alphabetical order: the innovations we will be writing about over the next four months. Simply send an e-mail to innovations@producebusi- • Category Management ness.com and we will be happy to incorporate your ideas. • Clamshell Packaging When we are done, we’ll collect the features and reprint them • Consolidation as a whole. The result will be a lovely 25-year birthday gift – this • Communications Technology one from PRODUCE BUSINESS – to the industry we are a part of. • Club Stores & Supercenters • Five-a-Day I was editor-in-chief of PRODUCE BUSINESS when it launched 25 • Food Safety/Traceability years ago and I remain editor-in-chief today. That has given me •FoodNetwork an unusual fixed vantage point from which to observe industry • Global Trade change. In many professions, having the same job for a quarter- • Government Involvement century would be a cause for boredom. That has not been a prob- • Greenhouse Produce lem here. • Large Scale Organic Farming When I look at the innovations listed as most significant, I am • Lifestyle Retail Formats struck with the degree to which the produce industry is influenced • Locally Grown by innovations that are really forces in the outside world and that • Logistics Efficiencies happen to transform produce incidentally. • Organics We haven’t attempted to rank the innovations, but certainly • Packaging Development one that was most frequently cited was the communications tech- • Private Label nology revolution. This is not surprising. Having grown up in a • Returnable Containers and Pallets household where my father went to work every morning on Hunts • Ripening Technology Point, I saw first-hand the anxiety he felt leaving the place. • Social Media We never once went on a vacation that was more than one • Sustainability work-week and two weekends because my father just didn’t feel • Third Party Audits comfortable leaving all those perishables – which he saw as boxes • Value-Added of money – sitting around the warehouse. We were actually lucky. • Varietal Development My family had a larger, better staffed operation than most. Some of our neighbors on the market never went on a vacation because In addition to inquiring of industry thought leaders as to how there was nobody there to take care of business. they came to see these innovations as the crucial ones, we’ve also We remember, though, as cell phones came into common use reached out to thought leaders to do some crystal-ball gazing. being pulled aside by Alan Siger, president at Consumers Produce, We asked how these innovations will continue to play out over who told us how transformational these phones had been for his the next quarter-century and what new innovations seem primed life. He now could go down to Florida with his family and still run to shape the future of the produce industry. the business.

30 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 137 Add today Skype, iPads, digital photog- The industry tends to get too insular – So to go to a staffer at a trade associa- raphy, etc., and this is true a hundred times recycling the same stories and experiences. tion or an assigning editor at a publication more than what Alan had realized back Trade associations – and publications for and instruct them to plan a workshop or an when cell phones were the size of kitchen that matter – try to bring new ideas to the article on what the future holds is not an sponges. fore, but there are strong institutional hin- easy task. drances that make that difficult. Part of the There are also practical considerations. IDEAS OF THE FUTURE problem is intellectual. As Herman Kahn, People working in the industry have a vari- The intriguing thing about a story such the noted futurist from the Hudson Institute, ety of reasons to volunteer – so they will as this is that it may point to a lesson in pointed out, it is difficult to predict the agree to sit on a panel at a trade show or both how the industry institutions ought to future because if we knew how people and conference, for example, and charge noth- conduct themselves and how industry businesses would do things in the future, ing. A great telecommunications expert, members, individually, ought to act. we would do them that way now. who could lay out the future, may also want big bucks to come and speak. Synergy is also particularly hard to produce. We can find experts in the produce industry and we can find experts in technological fields – say telecommunications, aviation, etc. – but it is much more difficult to put the two together. It is interesting that we may go to Mars; the impact of that on the produce industry and the opportunities that will surely open for those in the industry is much harder to deduce. Which doesn’t mean it is not profitable work. As I write this, I am directing an effort to begin publishing a series of technology articles starting in January. We’ll devote a half-page to a technological innovation not obviously produce-related and another half page to trying to make that connection. That is a start, but the broader issue is theneedtobeopentoideasthatarenot obviously connected to one’s work. The future is not likely to be a geyser erupting in the produce industry; it is far more likely that it will break out in fields such as telecommunications, and we in the produce trade will be left to navigate the wake of such innovations.

SECONDARY EFFECT The second point we note in looking at the list of innovations is how often the produce industry is hit by a secondary effect of what is going on in grocery or at retail. Consolidation was not a produce phenomenon except incidentally; it was Safeway buying up Dominick’s and Randalls and Genuardi’s; it was Kroger buying up Ralphs andFry’sandSmith’s,etc. Category management was well estab- lished in grocery before it started in produce and, of course, innovations such as club stores and supercenters were as much about lawn furniture as about produce. More recently, the trade’s initiative on traceability was held up, in no small part, because questions had to be answered as to how this effort would mesh with efforts Reader Service # 124

32 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 136 Our innovation analysis shows clearly that an ability to understand what is clearly going on at retail and foodservice operators that an ability to understand what is going on at is crucial to understanding the future opportunities that will present themselves retail and foodservice operators is crucial to in produce. understanding the future opportunities that will Ok, there is my moment to send a second directive off to my team: “Let us do a present themselves in produce. quarterly feature on things going on at retail and foodservice operators that are not being done in produce.” Our goal will be to catch things like category management in other perishable departments at retail used to listen with interest as produce of a new format, before the produce trade and among foodservice operators. exhibitors expressed the hope that they is generally cognizant of this kind of inno- Yet the trade’s effort to engage with non- might meet, mano-a-mano,withtheCEO vation coming down the pipe. produce executives at retail has not been of Wal-Mart, Costco, Kroger or Safeway. particularly availing. Part of it is that top We were a little skeptical about how often PEOPLE BUSINESS retail executives don’t pay that much atten- that would happen as we doubted that Our third thought upon reviewing the tion to produce, and if they are concerned, even if Wal-Mart’s CEO suddenly wanted list of innovations is that the list is only half they tend to rely on their own teams to to know a lot about produce – unlikely to the story. After all, many of these innova- bring them what expertise they need. It is begin with – that the way he would acquire tions could have affected the industry in also true, though, that most people in the that knowledge would be to bumble many different ways, but it was the people, produce trade are not particularly prepared around a trade show. Yet more than that, the individuals who seized leadership, who to engage with the concerns of major retail- we wondered what the typical personnel executed them and made a difference. ers and foodservice operators. staffing the booth would have to say to the One thinks of the lucky happenstance When the United Fresh Produce Associ- CEO of Wal-Mart. We suspected it would that of all the people of the world, Sam ationwasdoingitsChicagoshowwithFMI, be, “Please, buy more potatoes.” Walton chose Bruce Peterson to head up the supermarket industry association, we Yet our innovation analysis shows Wal-Mart’s then-incipient produce busi- Reader Service # 24

34 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 120 ness. Bruce was a retailer, of course, but We look at organics and think about of the PO could actually do. If there are Sam wanted him in no small part because Drew and Myra Goodman at Earthbound fewer people whose position allows them of his experience at Meijer. Farm. It is easy to think organics sold them- to wield the PO creatively, the industry will But Bruce had roots in produce whole- selves, but we remember Tonya Antle fight- have less effective leadership – and that is saling, a commitment to working with the ing with passion for the product she bad for us all. trade through associations and a vision that believed in. My third directive to my team: “We need saw Wal-Mart’s success as hinging on a We lost Jack Pandol this year. He was to reemphasize people. Ideas are important, partnership with the supply base. As a the chairman of PMA’s first International but without people to execute, without peo- result, for the most part, the rollout of Wal- Trade Symposium. It was held in San Fran- ple willing to sacrifice to make things hap- Mart Supercenters across America was cisco in 1985 along with the PMA conven- pen, things often don’t happen. PRODUCE benign, a positive for the produce supply tion, just as we were launching PRODUCE BUSINESS has always done a lot on people – base. In another person’s hands, the same BUSINESS. He didn’t just engage in interna- our 40-under-Forty is a celebration and trend may have played out very differently. tional trade, he believed in it strongly, saw commendation of people moving into lead- There is a great question in the study of it as the path to profitability for growers and ership roles. Let us try to revive our old PB history as to what is the best way to think of he fought to make it possible. Interview, doing an in-depth interview on a history. Some favor the “Great Man” the- We think of about the regional retailers person of industry accomplishment.” ory, in which individuals are presumed to – Harold Alston at Stop & Shop, Tony Mis- So there it is. We have 25 great innova- have made a difference. Others say no, that asi at Grand Union, Bob DiPiazza at tions and lots of ideas for the future. But I there are major trends that make things Dominick’s, Dick Spezzano at Vons – and just read our own article, starting below, happen, and they would have happened we remember how hard these leaders and thought of three ways to do things bet- with or without these individuals. In other worked to see things like standardized ter. Maybe that is the real lesson: That inno- words, Einstein may have been a genius but PLUs become a standard. vation is perpetual and the key is a if he had been hit by a bus, some other Indeed we worry a bit for the industry willingness to change and grow and do genius would have discovered relativity. on this point. There are a few of these types new things. Perhaps, but having lived close to the of regional operations left. Mike O’Brien JP Morgan was famous for responding to epicenter of everything that happened in from Schnucks, PMA’s chairman-elect and the media’s demand for an explanation of the business for the past 25 years we can a former chairman of PBH, comes to mind. what the stock market will do by saying, “It say, without a doubt, that at every stage But with consolidation, there are fewer will fluctuate.” Perhaps the best answer to people have made the difference. people with the flexibility these regionals what will happen to innovation in the years We remember Tim York, president of had. This is to no small extent why the Pro- ahead is, “We will have a lot of it.” The key Markon, in a beige jacket standing up at duce Traceability Initiative has stumbled. It may not be perfect prognostication; it may countless meetings and, being from Salinas, looked to use association leadership to do be flexibility to deal with what actually and thinking buyers had to act. what really only folks wielding the power unpredictably winds up showing up. pb

Twenty-Five INNOVATIONS THAT SHAPED THE INDUSTRY

BY JODEAN ROBBINS

n the past 25 years, the produce industry has experienced sig- Produce Marketing Association (PMA) in Newark, DE. “We know nificant growth and evolution. Certainly, many industry veter- much more about sales patterns. We’ve made great strides in the Ians would have had a hard time imagining in 1985 the rapid use of technology to communicate and enhance efficiency. Also, change and development seen in these past two-and-a-half we’ve become adept at using technology in every aspect of the decades in our industry. “This is certainly not the same industry supply chain from production to processing to logistics and all today as it was 25 years ago,” says Chris Nelson, president and the way through to the consumer.” CEO of Mixtec Group, located in Pasadena, CA. In the early 1980s produce was important, but not a center- “We have much more of a consumer focus than a production of-the-plate item. Most items were still seasonal and the average focus today,” states Bryan Silbermann, president and CEO of the produce department was fairly limited in variety. “The SKU count

36 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 203 of an average produce department was Continues Brous, “Apples, citrus, grapes sumers and media along with greater inno- probably a third, maybe a quarter of what and berries are just a few of the products vation and creativity in the industry. “It is it is today,” states Maria Brous, director of that were only available a few months of hard to narrow it down, but top areas of media and community relations for Lake- the year back then. Today, improved refrig- innovation include communications, food land, FL-based Publix Super Markets Inc. eration and transportation methods allow safety and product options,” says Tim Ray, “Many tropical products and other spe- the shipment of product around the world, produce manager with Commerce City, cialty products were simply unknown in allowing most products to be available all CO-based Shamrock Foods Co. Inc. “The most of the United States. Packaged sal- year. Seasonality is really not much of an combination of these areas has brought ads, specialty juices and the entire organic impact in the business now when thinking produce to the forefront of the food indus- produce category are just a few of the of availability.” try making produce the new center-of-the- product categories that were unavailable The convergence of several factors plate.” 25 years ago.” resulted in a new focus on produce by con- “Trends predicted even as recently as 2001 in the areas of convenience, eating out, tropicals and exotics and technology have already become a reality,” says Al Vangelos, president and CEO of Sun World International LLC, headquartered in Bak- ersfield, CA. Industry leaders identified a great number of different innovations and trends affecting the produce business in the past 25 years (see list on page X). However, several key areas repeatedly appeared, allow- ingustoreportonthesetopfive innovations. (See our November issue for the next five innovations.)

1: COMMUNICATION TECHNOLOGY: By far, the most referenced innovation in and on the industry is the area of communications and information technology. “First there were the multiple phones on the buyers’ and sellers’ desks,” reports Kevin Moffitt, president and CEO of the Mil- waukie, OR-based Pear Bureau Northwest (PBN). “Then came the fax machine speed- ing and streamlining transactions. Then the Internet brought instant communications, reduced operator errors and provided access to quick and accurate photos of product or problems reducing the time for buyer/seller adjustments and increasing the efficiencies of the entire chain.” “First the fax, then email, and then the Internet have brought more producers closer to the retailer,” adds Jon Strom, vice president of floral and lifestyle merchandising for Price Chopper Supermarkets, in Schenectady, NY. “Everything from cell phones, Internet, and other devices have transformed communications between buyers and sellers,” states Tom Stenzel, president and CEO of the United Fresh Produce Association, in Washington, D.C. “Twenty-five years ago, we were using fax machines that took six minutes a page. It’s now almost instanta- neous. With picture communications we Reader Service # 170

38 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 218 can see a load of produce for quality issues cation between sellers and buyers. You smart-phone so we could instantly approve at receiving and Skype with anyone any- have the Internet and e-mail at your fin- a price, save a rejected load or check where in the world at no cost. This is trans- gertips wherever you are. This kind of weather and supply,” explains Dionysios formational when you think about how the access to information can only help us to Christou, vice president of North America produce business exchanged information do a better job in the future. Whether marketing for Del Monte Fresh Produce not that long ago.” you’re a retailer, wholesaler, trucker, bro- N.A. Inc., in Coral Gables, FL. “We have The advent of cell phones quietly ker, grower or anyone in between, you’ll round-the-clock access to USDA market changed the way we do business. “We are be in a position to make better more reports to have up-to-the-minute market accessible 24/7,” says a large Western informed decisions.” pricing. When we are faced with a crisis we retailer who asked to remain anonymous. “Most of us most likely don’t recall a can instantly see pictures of what the cause “Good or bad, it has improved communi- time when we didn’t have access to a could have been so we can fix it. Produce is unique and can be more sensitive than other products or commodities due to its perishable nature, and the immediacy of the Internet and e-mail has helped to solve and prevent many conflicts.” The Internet considerably changed the way produce companies communicate with customers, suppliers and consumers. “Technology has been the real driver over the past decade with the advent of the Internet changing consumer and business communications in a radical way,” says Jan DeLyser, vice president marketing for the Irvine-based California Avocado Commis- sion. “E-mail, blogs, social networks, shared information and, of course, shopping have affected the industry and pushed innovation.” “The Internet has helped make busi- nessmen worldwide more efficient, more accountable, infinitely available and even more knowledgeable,” says Christou. “The produce industry may have been a late entrant into the wonders of the World Wide Web and e-mail; however it has helped us come a long way in a short time.” Steve Grinstead, president and CEO of Pro*Act LLC, located in Monterey, CA, adds, “Internet communication has completely transformed how we do business in every way. In our case, almost every aspect of our business process is done on-line, from orders to projections to payments. Clearly, there remains a personal aspect to the business, but the majority of the business processes have been completely re- written with the innovation of electronic communications.” “We are convinced that adoption of these tools has helped us achieve our goals year after year,” emphasizes John Vena Jr., president of John Vena Inc., headquartered in Philadelphia, PA. “Many of our suppliers are overseas, and certainly the use of email and the drop in telecom- munication rates due to improved technology has greatly lowered our costs.” Rapid access to information quickly Reader Service # 91

40 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 37 became the produce industry’s major pro- ponent. “The application of information “Advances in informational technology came a little late to our segment technology of the industry,” reports Vena. “But when and accessibility have made trans- we first installed a computer system in 1990 to enable us to sell and receive prod- parency a more integral part of our uct, control inventory and invoice our cus- business. Almost every part of our tomers, our eyes were opened to a whole new business world. It changed our per- business today is touched by this spective about many things in our industry area and it resonates on so many that we had not thought possible until then. Also, it made us ever more receptive to different levels.” looking at everything we did with a new, — Tim York, Markon Cooperative Inc. fresh point of view.” “The flow of information has stimulated innovation in the industry,” states Tim York product that’s been shipped across the the beginning.” president of Salinas, CA-based Markon country or across the world.” Information technology also has Cooperative Inc. “Advances in information It has also helped with the competitive- allowed the industry more direct access to technology and accessibility have made ness of the industry. Del Monte’s Christou consumers. “Consumers are able to find transparency a more integral part of our explains, “Our customers are more edu- nutrition facts and other information on business. Almost every part of our business cated on pricing and products, and the what foods are good for them,” says York. today is touched by this area and it res- Internet has evened out the playing field. “Also, they’re able to access information on onates on so many different levels.” The ability of the Internet to instantly dis- food safety, production practices, labor “Technology has brought far greater tribute mass communication has changed issues, sustainability with greater ease.” transparency to the supply chain,” agrees the way the produce industry reacts to In addition to using new technology, the PMA’s Silbermann. “One obvious exam- recalls and communicates promotions and industry has also gone old school in devel- ple is the use of digital photos and video to innovations. Everything from invoices to oping communications directly with con- be able to see the arrival condition of a contracts is now electronic, and this is only sumers via books. “Several major produce Reader Service # 181

42 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 54 tion of all segments of the industry,” says “The move of Wall Street Mixtec’s Nelson. “Most people recognize into the farm that retailers have merged over the years in belt and supermarket has impacted facets of our order to better compete with Wal-Mart and Costco. But the foodservice industry, value- industry. Between public companies and private added processors, and now, even the capital funds, how much of the grower/shippers have also joined together in order to better serve the year-round production agriculture and grocery needs of the much larger, national chain retailing are controlled by people customers.” “In the past 25 years we have seen a who have never owned a produce decline in the number of operating retail knife or wore an apron to work?” and foodservice entities in the United States,” states Mike Aiton, marketing man- — John Pandol, Pandol Bros., Inc. ager for Prime Time Sales LLC, in Coachella, CA. “As examples, once regional stalwarts like Dominicks, Randalls, companies have created produce books in other groups that have taken this route to and Vons are now Safeway and Smiths; Dil- the past five years with major publishers,” communicate with and educate con- lons, and Ralphs are now Kroger. Much of reports Robert Schueller, director of public sumers. this was fueled by the unprecedented relations for Los Angeles, CA-based growth of Wal-Mart and the feeling that to Melissa’s/World Variety Produce Inc. 2: CONSOLIDATION win you need to get bigger. The same can “Melissa’s has two nationally distributed Along with the expansion of communi- be said in the foodservice arena as inde- books on produce for America to enjoy.” cation and information, the past two-and-a- pendent operators have either joined Earthbound Farm, in San Juan Baustista, half decades also brought consolidation of together in groups like Markon and CA, Frieda’s Inc., located in Los Alamitos, many businesses in the quest for efficiency. Pro*Act, or have been gobbled up by CA, and the Atlanta-based Georgia Depart- “The biggest single change in the past 25 national monsters like Sysco.” ment of Agriculture are among the many years in produce has to be the consolida- The move to larger and larger buying Reader Service # 119

44 PRODUCE BUSINESS • OCTOBER 2010 Reader Service # 141 FUTURE NOTES

LOOKING 25 YEARS INTO THE FUTURE n 1985, not many could have predicted innovation today.” thoughts about future innovations – as well the way the produce industry would look Despite the imposing challenge, PRODUCE as past innovations – to Innovations@pro- Iand operate today. So, who of us can pre- BUSINESS asked the industry to take a stab at ducebusiness.com dict what it will look like 25 years from now? identifying some of the major influencers As put by Kevin Moffitt, president and CEO and factors that will cause innovation in the Information Technology of the Milwaukie, OR-based Pear Bureau next 25 years. Throughout the pages of this “Some of the GPS technology that’s a part Northwest (PBN), “Looking ahead to the story, you will see a series of “Future Notes” of our industry for food safety and particu- next 25 years is difficult. Who would have that clarify some of the main areas that were larly in terms of traceability will change the seen or predicted the changes that have identified. ways in which our growers, distributors and taken place in the past 25 years? There will In the next four issues of PRODUCE BUSI- retailers look at the business and deal with be many changes that we haven’t even NESS, we will continue to explore future inno- the business,” says John Anderson, chairman, thought of, especially with the fast pace of vations, and we invite you to send your own president and CEO of The Oppenheimer

organizations has played a major role in players that has occurred over the cen- resulted in fewer buyers and the buy/sell reshaping the industry and the size of the turies; what we see now is an industry not relationship has become less personal and players. Dan Dempster, president of the unlike what has occurred in other sectors more programmable,” adds Aiton. “There Canadian Produce Marketing Association of society. This is changing the supplier side is more focus on the gross margin and labor (CPMA), headquartered in Ottawa, aswell,suchthattheycanrespondtothe control rather than on driving sales, and Ontario, Canada, explains, “It is a continu- challenge of servicing the larger players.” product assortment has grown from 200 to ation of the shrinkage in total numbers of “This tremendous consolidation has 500 [SKUs] as retailers strive to be all thing Reader Service # 90

46 PRODUCE BUSINESS • OCTOBER 2010 Group in Vancouver, British Columbia, est of fruits and vegetables. It will be edible knows what else.” Canada. “Some of these new electronic cat- and probably not seen, yet could be used all “Moving forward, it will likely be mobile egory management and GPS technologies the way up to pallet quantities. It will be devices that will be the single biggest game- will allow retailers to be better educated on, cheap and an effective RFID substitute.” changer and redefine retail internal for instance, what their shrink is on the shelf “We will eventually work out the bugs in processes,” says Jan DeLyser, vice president and which products are making the highest RFID technology and the cost will come marketing for the Irvine-based California Avo- return, and that will have them changing down,” says Mike O’Brien, vice president of cado Commission (CAC). “In 2020, it is pro- quite rapidly from one product to another.” produce for St. Louis, MO-based Schnuck jected that there will be 3 billion mobile “Nano-technology could have a huge Markets Inc. “Once that happens, we will use devices worldwide. Mobil advertising will be impact in the future,” says Bill Schaefer, pres- it to check out groceries at our supermar- mainstream advertising, but customized for ident and chief operations officer at Home- kets, take inventory, trace product from field each person. It will interact with POS materi- stead, FL-based Fresh King Inc. “It will provide to fork and monitor the temperature and als and displays, and provide retailers informa- new ways to code and track even the small- quality of our produce in transport and who tion on the specific customer as they shop.” See more “Future Notes” on page 52 to all people. Retail prices and the needed and retail buyers,” states PMA’s Silbermann. one guilty of consolidation, as over the past margin on more staple commodities have “However, even today, many centralized two decades the supply side has seen its risen to offset the inherent shrink associated buying organizations are still finding their share as well. “If we look at the amazing with the expanded variety.” way. In any buying organization they’ve got boom of fresh green asparagus out of Peru “Consolidation has had a fundamental to be buying to the specs of the store and you can see that the top five companies impact on the relationships that shippers consumer.” represent more than 60 percent of all and marketers have with both foodservice Indeed, the retail sector is not the only imports,” says Peter Warren, sales execu-

OCTOBER 2010 • PRODUCE BUSINESS 47 “Because of a desire to offer more fresh foods in general, we’ve seen the rise of more non-traditional outlets. These include vending machines, ballparks and single-serve snacks on airplanes. As the industry provides innovative packaging and processed products, it has allowed the development of these other formats.” — Bryan Silbermann, Produce Marketing Association

tive with Ayco Farms, headquartered in mega-deals with many having use of their Deerfield Beach, FL. “This was quite differ- own ships.” ent 20 years ago when the race for the “We’ve seen many of the top items ‘grass’ deal was in its height. Melons are being consolidated into fewer hands,” says another example. The deal was in hands of, Warren. “Today, there are about 25 percent say, 50 growers and 15 importers just 10 less melon growers and exporters than years ago. Today, we have three huge play- there were 20 years ago.” ers and maybe three independent players Another less apparent, yet still impact- in the offshore melon deal. It has consoli- ful trend is the advent of the private dated into vertically integrated very large equity/investment banking involvement

VISIT US AT PMA BOOTH #2643 Reader Service # 75 Reader Service # 34

48 PRODUCE BUSINESS • OCTOBER 2010 and ownership of fresh produce companies. Mixtec’s Nelson explains, “This sim- “Between cut salads, cut fruit and cut ply was not the case 20 years ago. This trend has more to do with the overall vegetables, the category is now economy and financial markets in terms about 15 percent of the total of excess cash, poor returns anywhere else and the credit crunch. But, it has definitely produce sales. Keep in mind this changed how we manage and finance category didn’t even exist 25 years produce companies versus the old gener- ational family farms. Unfortunately, some ago.” of these firms are getting a real wake-up — Dick Spezzano, Spezzano Consulting Service Inc. call on how markets and weather can adversely affect their bottom lines.” “The move of Wall Street into the farm belt and supermarket has impacted facets of our industry,” says John Pandol, vice president of special projects for Pandol Bros. Inc., based in Delano, CA. “Between public companies and private capital funds, how much of the production agriculture and grocery retailing are controlled by people who have never owned a produce knife or wore an apron to work?”

3: VALUE-ADDED The rise of pre-cut produce was an important contributor to developing our modern-day produce department and certainly to the explosion of innovations that followed those first value-added products. “Pre-washed, packaged salads revolution- ized the consumption of salads in this country, and now it’s a $3 billion category and one of the most important in the produce department,” says Charles Sweat, president and CEO of Earthbound Farm. “Today, tender leaf salads — the category that Earthbound Farm built — accounts for 26.4 percent of packaged salad sales, making it more significant than romaine or ice- berg in packaged salads.” “Between cut salads, cut fruit and cut vegetables, the category is now about 15 percent of the total produce sales,” says Dick Spezzano, president of Spezzano Consulting Service Inc., in Monrovia, CA. “Keep in mind this category didn’t even exist 25 years ago. Naturally, the category has somewhat cannibalized the whole salad, vegetable and fruit category, but it also has increased the sales and consumption of these categories.” “Looking at where we’ve come since fresh-cuts started in the early 1990s, how could you argue it wasn’t a huge innovation?” queries Silbermann. “Those innovations began in foodservice and migrated into retail, and the convenience factor has been a great boon for the industry.” Reader Service # 142

OCTOBER 2010 • PRODUCE BUSINESS 49 PERUVIAN ASPARAGUS SHOWCASE Why Buy import? · Peruvian season compliments US growing region · Supports U.S. jobs and labor force. enabling retailers to sell asparagus 365. · Of every $ spent on imports an estimated · World class food safety and quality. .70 cents remains in the United States. · Peru represented over 55% of total supply. · Up to 10% anticipated category growth in 2010.

YPRODUCE ALPINEFRESHAYCAYCOFARMSOFARMSCARBAMERICASCRYSTCRYSTALVALLEYFOODSALVALLEYFOODS THBAYPRODUCE NOR NORTHBA Reader Service # 26 Reader Service # 31 Reader Service # 83 KEYSTONEFRUITMARKETING KEYSTONEFRUITMARKETING TT JACOBS,MALCOM&BUR JACOBS,MALCOM&BURTT Reader Service # 27 Reader Service # 39 Reader Service # 35 HARVESTSENSATIONS HARVESTSENSATIONS Reader Service # 38 Reader Service # 29 Reader Service # 33 HARVESTCROWN HARVESTCROWN THEPERISHABLESPECIALISTTEAMPRODUCESOUTHERNSPECIALSOUTHERNSPECIALTIESTIES

50 PRODUCE BUSINESS • OCTOBER 2010 Peruvian Asparagus Importer’s Association Driven by consumer trends in health To become a part of this dynamic association that is positively impacting the and convenience, the value-added cate- future of the fresh asparagus industry, please contact Priscilla Lleras, gory has contributed significant advances PAIA Coordinator at [email protected] or at 817-793-3133. for produce. “Fresh-cut has really helped boost consumption of both fruits and veg- CUSTOMIZEDBROKERSGOURMETTRADING etables,” says Robert Colescott, Jr., president and CEO of Pompano Beach, FL-based Southern Specialties Inc. “Time and convenience have driven the category into a huge and fast-growing segment of the produce industry,” says PBN’s Moffitt. “Packaging and safety innovations have helped in the growth. Even with some slowdown due to the recession, this area of the industry has much more potential going forward. “ “Ready-to-eat categories such as packaged salads, prepared vegetables and things such as Apio’s Eat Smart line demon- strate the innovation of the industry,” explains Publix’s Brous. “Customers want healthful products, but they also expect products that are easy to use and provide a Reader Service # 28 Reader Service # 63 time savings.” Says United’s Stenzel, “Fresh-cut brought produce to places and people it never reached before — consider the revolution caused by peeled cut carrots and sliced apples.”

4: CLUB STORES AND SUPERCENTERS During the past 25 years, the retail landscape has changed significantly as operators looked to innovate and differentiate. “Today’s shopper spends money in many different formats depending upon the reason for their shopping trip,” says PBN’s Moffitt. “They vary from stocking up to a quick trip to looking for convenience. The

Reader Service # 64 Reader Service # 36 supercenter’s one-stop shopping and lower prices made great inroads over the past 25 years. However, their footprint, check-out lines, limited customer service and sheer size will limit growth as shoppers get older and time continues to be more of a factor for people.” The first and foremost large-scale inno- vator of a different style of retailing was the infamous supercenter, and their fingerprints are all over the innovation of the past 25 years. “Supercenters have redefined the entire retail landscape, encouraging bulk purchases, sharpening competition, creating a price-driven landscape and making logistics a core strategy,” states the CAC’s Delyser. “The supercenter and Club stores have Reader Service # 65 Reader Service # 66 PROGRESSIVEPRODUCE had a great impact on the industry,” says

OCTOBER 2010 • PRODUCE BUSINESS 51 FUTURE NOTES centers gained access to the food business Continued from page 47 and warehouse clubs were able to offer a selection of pack-styles and alternative FOOD SAFETY/TRACEABILITY ways of getting produce to the consumer,” says John Anderson, chairman, president ood safety and traceability and its associated technology will continue innova- and CEO of The Oppenheimer Group in “ tion,” says Dan Dempster, president of the Canadian Produce Marketing Asso- Vancouver, British Columbia, Canada. Fciation (CPMA), headquartered in Ottawa, Ontario, Canada. “They grew substantially and took their “Food safety, particularly third-party audits, are future factors,” says Kevin Moffitt, pres- niche in the retail trade, which was cer- ident and CEO of the Milwaukie, OR-based Pear Bureau Northwest (PBN). “Third-party tainly different than the format over the pre- audits have been increasingly important domestically and internationally and have been, vious 25 years. These types of cases barely in part, driven by food safety concerns. The audits, as well as retail, foodservice and gov- existed at that time.” ernment demands, have increased costs to growers and there is a need to standardize No matter what your opinion is on the the protocol instead of having to do three or five different audits. It will also be impor- supercenter, the new format definitely tant for retailers, especially in Europe, to discontinue their push for their own unique drove advancements, change and forced audits over and above what is safe and acceptable only to try to prove a point of differ- increased competition. “Those traditional entiation. With the food safety bills floating through Congress and the recent egg recall, chains that had to compete with these two food safety will continue to move to the forefront and will continue to be important in formats had a difficult time, and many were the foreseeable future.” consolidated into larger companies,” See more “Future Notes” on page 55 explains Spezzano. “Those remaining companies worked hard to get their cost down, reduce retails to be more competitive and develop strate- Spezzano of Spezzano Consulting Services. store business, it is even smaller, and they gies that played to their strengths with the “In spite of the few players in the super- do about 20 percent of the entire produce consumer. I believe that the chains operat- centergroup,theydoabout25percentof business.” ing today are stronger and better positioned the entire produce business. In the Club “Certainly, during this timeframe, super- to compete with any store format,” he adds. Reader Service # 167 Reader Service # 45

52 PRODUCE BUSINESS • OCTOBER 2010 Nothing says quality like Consistent longevity. In other words: we wouldn't still be here

if we weren’t very good

at what we grow.

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Since Fresh Vegetable Sales: 1-805-487-7799

Fresh-Cut Sales:

1-805-487-2299

1915

Family Pride Since 1915 www.boskovichfarms.com Reader Service # 62 “The industry opened its eyes even more to the outside world. My ‘market’ became everyone’s potential marketplace, and someone else’s local product started facing off with my own loca