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DIGESTA P U B L I C A T I O N O F T H E F R E S H P R O D U C E & F L O R A L C O U N C I L 10 Features 8 FPFC Names 2017 Apprentice Class FOCUS ON TRAINING 10 Light Crop Creates Targeted Effort FOCUS ON AVOCADOS 12 500 Million Avocados Sold During 2016 Avocado Holidays FOCUS ON AVOCADO MOVEMENT 14 It’s All About Taste for Zespri FOCUS ON KIWIFRUIT 28 16 FPFC Northern California EXPO Cover photo provided by User Friendly, Ink. EVENT PHOTOS AND THANK YOUS 28 FPFC Family Day at the Races EVENT PHOTOS AND THANK YOUS 34 Grower Panel Discuss Challenges Of Farming in California FOCUS ON THE FPFC 35 Northern California Membership Luncheon EVENT PHOTOS AND THANK YOUS Volume 45, Number 2 April / May 2017 Departments FRESH DIGEST (ISSN-1522-0982) is published bimonthly for $15 of FPFC membership dues; 4 Editor’s View $25 for annual subscription for non-members By Tim Linden by Fresh Produce & Floral Council; 2400 E. Katella Avenue, Suite 330, Anaheim CA 92806. 6 Executive Notes Periodicals postage paid at Anaheim, CA, and By Carissa Mace at additional mailing ofﬁces. POSTMASTER: Send address changes to FRESH DIGEST, 26 Council News 2400 E. Katella Avenue, Suite 330, Anaheim FPFC Highlights CA 92806. 35 APRIL / MAY 2017 3 It’s a Matter of Perspective

My dad was going to stay that high for months. We have been a wholesaler on the going through at least 10 avocados a week. That’s Los Angeles terminal $25 just on avocados each week. Our berry bill is market during all of in the same neighborhood. In college, my room- my youth and teen- mate and I would each put $25 in a jar on top of age years. I had a the refrigerator at the beginning of each month for Red Delicious apple all of our food needs. We rarely had to feed the in my lunch bag ev- jar before the end of the month. ery day of the year, The other day I happened to be talking with and during corn sea- Tim Linden my wife about our grocery outlay as we drank a son, we had corn on bit before dinner. It had been a particularly difﬁcult the cob every night as well. week for both of us, so I reached into the stash and It made sense. During the early part of his ca- pulled out a couple of Friday-worthy bottles. A reer my dad represented Washington apples, and he Rombauer Chardonnay for my wife and a Zinfandel was known for sweet corn sales in the L.A. market from the same vintner for me. We could each enjoy for many, many years. He had access to those items our favorite wine color without worrying about

VIEW and was constantly bringing home a box of apples running out because of poaching from the other. I or a crate of corn. Besides filling our refrigerator, he mentioned my daughter’s unabashed avocado and By Tim Linden would bag them up and one of his kids was required berry habit and opined that she just might be able to make the rounds of our closest neighbors, leaving to alter her munching habits to fit the season. a bag of produce on their porches. Right now pears and citrus are in peak season, I am also in the produce industry, but with and maybe a quarter of an avocado per toast slice very little access to free food. Nonetheless, like would suffice. As I poured my second glass of this my father before me, I make sure there is always tasty red, I observed that bananas are always at a ample fresh produce for my family in the refrigera- bargain price and Red Delicious apples were good tor. With my two older kids out on their own, the enough for me. Grapes are plentiful and reasonable chief consumer I need to please each day is my high through most of the year and maybe tomato toast school-aged daughter. Unfortunately, my daughter’s would be good. tastes run on the expensive side. She likes apples I was getting a head of steam when my wife but only the new more expensive varieties, and asked me if each glass of wine we were drinking never in her lunch. For lunch it has to be blueberries cost more or less than an avocado, even at today’s or strawberries. Almost every morning she wants prices. I pondered that question for a moment and avocado toast, featuring one-half of an avocado, un- determined that avocados and berries reallyy aren’t less the avocado is small or her appetite is big that that expensive. They really are a bargain. day. Then she will eat an entire avocado. She has very good eating habits pretty much all the time and often meanders to the refrigerator at all times on the weekends or after school or after dinner and will eat berries or avocado toast. That’s all good…except in years like this one. As you know, we have had a lot of rain this year, FPFC MISSION STATEMENT which caused berry prices to be pretty expensive. Instead of a two-pound clamshell being promoted at The Fresh Produce & Floral Council is a dynamic community of professionals across all sectors of $5, we often have been paying that same $5 for one the fresh produce and floral industry who do pound, which never lasts more than a day or two. business in California and the western region. Blueberries are typically more expensive. At least The Council is dedicated to providing members warm spring weather is seeing a return to normal with convenient opportunities to build productive berry prices. As the California season got underway, relationships, access timely market information, enhance their business skills, and pool their avocados have been $2.49 each at my local market, efforts to promote and advance the industry. and that’s not for a big one. It looks like they are EDITOR'S

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We’ve Been Busy

In the first right direction, achieving goals, serving the industry three months of 2017 to the best of our ability, and doing what we need the Fresh Produce to do to adhere to our mission statement. & Floral Council has We will again be holding strategic planning had five events, three meetings this year with the plan ready for approval of which are among at our November Board of Directors retreat. our biggest events In addition to the industry calendar, we will of the year – the An- be taking a hard look at issues such as staffing (do nual Dinner Dance, we have enough staff, the right staff, etc.), issues the Family Day at the Carissa Mace affecting the industry both nationally and region- Races and the North- ally, and expectations of members, among other ern California Expo. factors. You get surveys from us from time to time; Normally we try to space things out better we use this information to help form plans to best but the calendar is not always our friend. In the last serve membership so before you automatically click few years there has been an explosion of events “delete” maybe take just a moment to consider in the industry. With the proliferation of regional filling it out. It is a case of “if you don’t vote, don’t events, private events by companies, and charitable complain” thing. If there are things you want to see

By Carissa Mace NOTES events you could, almost literally, be attending some- the organization do, it really helps if you take the thing every day. Add in the holidays and it makes time to tell us. I promise the surveys we send out finding dates for events a real challenge. will be short. We know how valuable your time is When we were looking for a date for our and don’t want to waste it. Northern California Expo, traditionally held in April, Now that we have no events until the May we found there were no dates available in that 3rd Southern California Membership Luncheon, time frame. Other industry events and the Easter staff can take a moment to re-group, get caught up holiday made it impossible. On a side note… this on projects, start working on the rest of the year’s whole Easter having a different date every year is events and do our planning for the future. We look REALLY a pain in an event planner’s butt. I’m just forward to you being a part of the process! sayin’…. Thus, we had to push the Expo back to the last week of March. This meant within a two week period we were producing two big, time-consuming events – Family Day at the Races and the Expo. In addition, we had committee meetings and a Board of Directors meeting thrown into the mix those weeks. Needless to say, staff (all three of us) were FPFC OFFICE going a bit nuts. 2400 E. Katella Avenue, Suite 330 Anaheim, CA 92806 So nuts, in fact, that when Tim Linden, the edi- tGBY tor of this magazine, asked for our contributions to Website: www.fpfc.org the magazine the week after the Races, which was a week before the Northern California Expo, our Editorial Office heads almost exploded. Luckily we had the option Tim Linden of pushing the deadline back a week. 925-258-0892 [email protected] The proliferation of industry events will no doubt be a focus when the Board of Directors Advertising Office works on strategic planning for the organization Dana Davis later in the year. Every three or four years, the 302-750-4662 FPFC embarks on a strategic planning exercise to EBOBEBWJT!FQJYOFU

EXECUTIVE make sure that the organization is moving in the

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FPFC Names 2017 Apprentice Class

The Apprentice Committee and the Board of Directors of the Fresh Produce & Floral Council (FPFC) are proud to announce the 2017 class of FPFC Apprentice Program:

Blair Butterworth Jim Leach Grimmway Farms The Oppenheimer Group

Baltazar Garcia Ivette Radillo Hollandia Produce, LP Westlake Produce Company

Eunice Guerrero Valerie Rangel Ready Pac Foods Tessemae’s All Natural

David Guzman Johannah Rosario Family Tree Produce Ready Pac Foods

Gabriel Hilbert Gerald “Jerry” Stutz Consolidated West Distributing, Inc. Pura Vida Farms, LLC

Alex Kim Sally Symms Robinson Fresh Symms Fruit Ranch, Inc.

Sponsored by Ready Pac Foods Founder and “We are so impressed with the caliber of ap- Retired CEO Dennis Gertmenian, and by Ready Pac plicants to the program,” says Apprentice Commit- Foods, the FPFC Apprentice Program is designed tee Chair Kristen Reid of MIXTEC Group. “These to not only provide Apprentices exposure to the are the dedicated, enthusiastic individuals who will entire supply chain, but also to prepare them for be leading this industry in the coming years. It’s in leadership roles through educational sessions, tours our best interest to help them develop the skills and and group projects. knowledge that will make them the strong, capable Focus on Training To facilitate the growth of their professional leaders that future challenges will demand.” networks and provide a sounding board for ques- The ﬁrst meeting of the 2017 class will be in tions and concerns, each Apprentice is paired with April and the class completes the program at the an industry mentor with whom they attend FPFC FPFC Dinner Dance in January, 2018. Membership Luncheons and the Southern California For more information, please contact the Fresh Produce & Floral Expo. FPFC ofﬁce at 714-739-0177.

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Light Crop Creates Targeted Effort

By Tim Linden

California avocado growers are only in the marketing approach. DeLyser said the Commis- beginning stages of their 2017 harvest, but they sion’s merchandising effort is to concentrate on know with certainty that they are going to have a retailers and their customers that have a particular crop only about half the size of the one they har- affinity for California avocados. She said market- vested in 2016. Last year about 400 million pounds level programs will begin in April, with the focus of California avocados were harvested and sent to on California, but also extending to its other key market. This year, the California Avocado Commis- western markets such as Seattle, Portland, Salt Lake sion, relying on typically very accurate estimating City, Phoenix and Denver. metrics, has pegged the crop at only about 200 CAC is concentrating its promotional activi- million pounds. ties to in-store radio, social media and digital out- With that smaller crop, CAC has created a reach. Using geo-fencing, CAC can use the cutting go-to-market strategy that is much more targeted edge technology to geographically target consumers than in previous years. “It is going to very much be near retail outlets featuring California avocados. in the hands of those in the West,” said Jan DeLyser, The messaging uses smart phone technology and vice president of marketing for the commission. alerts consumers to promotion in their individual “For those grocers close to home that really ap- neighborhoods. With the smaller size of the crop, preciate the ‘locally-grown’ message this will be a DeLyser said the marketing approach has to be great opportunity.” very targeted because there is just not enough fruit Last year CAC tweaked its longtime “Grown to go around. Although she did say that there are in California” tagline and transitioned to “Made of retail accounts across the country that will insist on California.” This year they could add that it’s going to California avocados and will be able to purchase “Sold in California” as well. The marketing campaign the fruit during the peak shipping weeks this spring of “Made of California” connotes that the avocado and summer. is representative of the Golden State just as is the Of course, the economic law of supply and Pacific Ocean, our pristine beaches and the Golden demand most likely means that California avocado Gate Bridge. Research has shown that positive im- prices will be higher this year. In early March, Rob ages of California resonate within the borders as Wedin, vice president of sales and marketing for well as beyond them. Calavo Growers Inc., in Santa Paula, CA, noted For the 2017 California avocado marketing that California growers were already picking fruit in Focus on Avocados season, which is expected to run from mid-March greater volume than he had expected. “There was into August, CAC has initiated a customer-specific an early opportunity for California to get started

10 FRESH DIGEST and they jumped on it.” small crop and above average rainfall and that is the He said a drop in volume from Mexico led to 2018 crop. An avocado tree tends to be alternate- higher field prices and growers reacted. He added bearing, which is the main reason the crop is down that a smaller crop across the board requires each this year. So there should be more fruit on the trees grower to manage their inventory very carefully to for 2018. Add to that the tremendous amount of maximize dollars. The field price for avocados in rain California has received this season, which has early February was in the $1.20 per pound neigh- resulted in very healthy-looking avocado trees, and borhood, which is a good price during a heavier optimism abounds. Only a fool would predict the volume year. A month later it had climbed to a size of the 2018 crop prior to picking the one in very healthy $1.70 per pound, and was no doubt 2017, but you would be hard ppressed to find any- the driver behind the early picking. thing but an optimistic grower. Because of the light crop, CAC expect the marketing window to be truncated and the distant most of the state’s avocados travel to destination to be shortened. Speaking of the length of the season, Wedin said the vast majority of California fruit should be sold by the end of July. While there will be some fruit available in August, with the earlier-than-expected start to the deal, he expected the weekly volume to drop off significantly by the beginning of that month. Speaking of the geographic reach of the fruit this season, Rankin McDaniel, president of McDaniel Fruit Co., in Fallbrook, CA, said his firm expects very little fruit to be shipped east of Denver. While there are devoted California avocado customers all over the country, the reduced volume means not all customers are going to be able to have their normal orders filled. Bob Lucy, president of Del Rey Avocado Company, Fallbrook, CA, agreed that much of the avocado volume will be exhausted by the end of summer. However, Del Rey also represents the niche Morro Bay avocado group that farms in that community northwest of San Luis Obispo. Because of its unique geography and climatic conditions (cool summers), the Morro Bay growers typically don’t begin to harvest their crop until late summer and continue shipments into fall. It is much too early to predict exactly when their marketing window will be this year, but Del Rey will certainly have California avocados past the traditional summer months. The smaller crop and the strong winter rains may result in a larger piece of fruit than expected. California avocado groves have been surviving mostly on well water for the past few years as Cali- fornia endured several years of drought. The many inches of rain this year have helped cleanse the soil of excess salinity and given the trees an excellent drink of water. A warm spring could mean greater sizing of individual fruit and a crop that is a bit larger than expected. Already the industry has noted excellent quality and size on early fruit. And there is another advantage to this year’s APRIL / MAY 2017 11 500 Million Avocados Sold During 2016 Avocado Holidays

Avocados are appearing more often on menus when family and friends gather for holiday celebrations. The Hass Avocado Board (HAB) recently released a study that shows the growing popularity of avocados as measured by retail sales trends during thirteen key holidays and events. Overall in 2016, shoppers purchased 10 percent more avocados than in the prior year, with nearly 1.9 billion avocados sold at retail across the country. Holidays have historically been a large contributor to annual sales, and 2016 was no ex- ception. The 13 holiday and event weeks tracked in the study contributed 502 million avocados (27 The Hass Avocado Board’s recently published Holiday and Events percent) to annual volume, up 11 percent compared study reveals that over five hundred million avocados were sold at to the prior year. retail during 13 key holiday and events. Consumers are showing increasing interest in serving avocado dishes during the holidays, and geographic regions. Nearly all holidays and events retailers are reaping the benefits. Retail sales grew performed well in each region. The Big Game was for 12 of 13 holiday weeks in 2016. Super Bowl the star volume sales event in all regions, except weekend continues to be a popular avocado eating the Northeast, where Cinco de Mayo ranked first occasion, turning in the top holiday volume week in holiday volume. at 54 million pounds (+16 percent vs. 2015). That To read about holidays and events in each week was also the second highest holiday dollar region and to get more in-depth information about week, behind Independence Day, which ranked avocado sales for each holiday, visit hassavocado- number one in holiday dollar sales, at $44.9 mil- board.com/retail. You can sign up there for the lion. Valentine’s Day is growing in popularity with Hass Avocado Board’s Hass Insights Newsletters avocado shoppers, surpassing 2015 volume by 29 to receive updates on current retail avocado trends percent. delivered straight to your inbox. “This study showcases the importance of HAB was established in 2002 to promote the these holidays and events to the avocado category,” consumption of Hass avocados in the United States. said Emiliano Escobedo, executive director of the A 12-member board representing domestic produc- Hass Avocado Board. “It is our goal to provide the ers and importers of Hass avocados directs HAB’s industry with actionable insights into the avocado promotion, research and information programs category, and the Holiday and Events study is a valu- under supervision of the United States Department able source for seasonal sales information.” of Agriculture. Hass avocados are grown in California

Focus on Avocado Movement In addition to the national trends, the report and imported into the U.S. from Mexico, Chile, Peru, also details holiday and event performance for eight Dominican Republic and New Zealand.

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It’s All About Taste for Zespri

By Tim Linden

New Zealand kiwifruit growers claim not to flavor as analogous to a “warm sunny day.” Capital- care if they are the largest producers of the fruit izing on that theme, Deaton said Zespri’s marketing that got its name from that island nation. But they program “invites consumer to celebrate the sun.” do want to be the best producers. Zespri, she added, is very focused on mar- “We grow for taste; it’s all about taste,” says ket development and has added significantly to Sarah Deaton, market manager – North America for its market development team throughout North Zespri International, which is the marketing arm for America, including expanding its presence in both New Zealand kiwifruit, as well as for other growers the Northeast and Southeast. In California, Susan across the world. Noritake is the market development manager. Deaton said it was the taste profile that drove Based in Newport Beach, she is available to help growers to introduce the Zespri-branded SunGold retailer set up marketing programs, including in-store variety several years ago. Zespri markets both promotions as well as the placement of custom that increasingly-popular gold variety along with point-of-sale material. the more traditional green kiwifruit. The country Zespri International exports premium kiwi- sells its fruit into the U.S. market from May through fruit and is recognized as one of the world’s most November. Speaking to the Fresh DIGEST in late successful horticulture marketing companies. Based March, Deaton said the timing appeared to be on in Mount Maunganui, New Zealand, Zespri is 100 track for the 2017 season. No fruit had been packed percent owned by current or past kiwifruit growers, or shipped to the United States at that point but and employs approximately 400 people in New she said that would occur within a matter of weeks. Zealand, Asia, Europe, and the Americas. The Zespri Zespri is expecting to have double the volume of brand is the global leader in premium quality kiwi- SunGold kiwifruit this season. fruit with 2,500 growers in New Zealand and 1,200 Deaton said it took breeders a decade to growers based elsewhere. Zespri manages kiwifruit

Focus on Kiwifruit develop the variety, which she said has a flavor innovation and supply management, distribution profile that is best described “as a cross between a management and marketing of Zespri Green, Zespri mango and a strawberry.” SunGold is also touted SunGold, and Zespri Organic. for its nutrition profile, including its high content of More information about the firm, including all both vitamin C and potassium of the members of the North American market- She reiterated that it was bred for flavor and ing support team can be found on the company’s that during taste tests consumers characterized the website: www.zesprikiwi.com

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March 29, 2017 Thank You Sponsors!

Rodney D’Acquisto, CDS Distributing, Inc.