1
The Future of Berries in the U.S.A.
Ken Hopps
Sun Belle, Inc. Virginia State University
March 17, 2011
2011 Virginia Berry Production andMarketing Conference
2
2011 Virginia Berry Production andMarketing Conference
The future of berries in the USA is bright and promising.
“Consumption of berry crops provided by the American berry crop industry will triple by 2020. As a result, the American berry crop industry will be viewed as a model of agricultural efficiency, sustainability and prosperity. Berry crop consumption will result in improved human health and nutritional and prosperity for rural and agricultural communities.”
Vision Statement: National Berry Crops Initiative
3
2011 Virginia Berry Production andMarketing Conference
• Focus on price is important but it’s not enough. Sales and marketing strategies should address the following areas:
– Health and wellness.– Transparency and supply chain.– Taste, value and emotions.
4
2011 Virginia Berry Production andMarketing Conference
• Health and wellness– Emotion is part of any purchase. By knowing the
health and medical benefits of berries, consumers will feel emotionally attached to the product. This will lead to loyalty and increased sales.
– As an industry we must do more to communicate and educate the consumer on the health aspects and nutritional benefits of consuming berries. • Berries are “Superfruits.”• Empower the consumer.• Berries are an important part of a healthy diet.
5
2011 Virginia Berry Production andMarketing Conference
Berry Health Benefits
Anti-bacterial Anti-oxidant
Anti-viral Anti-carcinogenic
Free radical damage Urinary tract health
Eyesight Cholesterol reduction
High fiber Nutraceutical values
Anti-inflammatory Vitamins and minerals
Low Carb and low calorie Heart disease
Kid Snacks (ready to eat) -Change kids eating habits
Satiation - The healthful feeling & rush of eating berries
6
2011 Virginia Berry Production andMarketing Conference
Health benefits - Sun Belle proactively involved• Berry health benefits symposium – Organizing committee chair.
• National Berry Crops Initiative (NBCI) – Board participation.
• USHBC (US Highbush Blueberry Council)– Board member.– Research committee.
• Blackberry R&P (research and promotion)– Organizational committee.
7
2011 Virginia Berry Production andMarketing Conference
Sun Belle research and development• Raspberries
– Exclusive licensee for propagation and production of Erika raspberry variety. • USDA release from quarantine anticipated for summer 2011.• Mexico production success as taste, color and shelf life have
outperformed. Accepted as premier variety in the UK as determined by independent consumer taste panels.
• Establishing grower partnerships for USA production.
– Trial and development of Cornell University Selections.– Commitment to the East Coast with tunnel production.
8
2011 Virginia Berry Production andMarketing Conference
Sun Belle research and development• Blackberries
– Taste, price and value proposition. Huge US consumption increase due to the Tupy variety. Sun Belle Mexico: 100% Tupy.
– Continuous varietal development directed by Sun Belle plant geneticist Dr. Nicole Hewstone.
– Trial of University of Arkansas selections.– Trial and development of Embrapa (Brazil) selections.
9
2011 Virginia Berry Production andMarketing Conference
Transparency and supply chain • Know who does what, when and where. Value added. • Embrace, adapt and accept new legislative food safety
requirements. Paradigm shift from detection to prevention.
• Embrace sustainability.
10
2011 Virginia Berry Production andMarketing Conference
Value, taste and emotions• Demand to be fueled by taste and value.• Consumers demand the best price but they also want to
feel good about the product and its benefits. Make them feel emotionally attached to the product. Excellent value for the benefits, taste and emotion.
• Packaging and branding that consumers have come to trust. Berries are a key year round offering for retailers.
11
2011 Virginia Berry Production andMarketing Conference
The Virginia story• Westmoreland Berry Farms
– Sun Belle’s domestic program began in Virginia 25 years ago. – Long term commitment to all of our domestic growers.
• Glocality. Sun Belle. Global brand. Local reach.– New state of-the-art Sun Belle Middle Atlantic (near Jessup)
distribution center with nearly 65,000 sq. ft., it will provide pre-cooling, QC and distribution services. Like our other facilities it will be Primus certified, with our own employees and refrigerated fleet (opening 2011).
12
2011 Virginia Berry Production andMarketing Conference
• The Virginia Story
Berries
Variety - Taste
Wellness and NutritionAvailability
Geography
Mid Atlantic
LocalSustainable
Growing Practices
Sustainable
Safe
Taste, appearance & color Mid Atlantic sweet spot Stewards of your lands
13
2011 Virginia Berry Production andMarketing Conference
Consumer
Informed
Trust / Brand
Taste
Price / Value
Consumer driven berry marketing
14
2011 Virginia Berry Production andMarketing Conference
The Global Picture• The case of Blackberries from a Mexican Perspective:
15
2011 Virginia Berry Production andMarketing Conference
• Blackberries in the U.S.A.
16
Variety100% Tupy
Sun Belle México S.A. de C.V.:Mexican Blackberries
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
482 757 1,094
2,118
4,114
5,174
7,827
9,486
Sun Belle Blackberry Growth (MT)
•Trial and development of Embrapa (Brazil) selections.•Trial of University of Arkansas selections.•Varietal development directed by plant geneticist Dr. Nicole Hewstone, assisted by a team of technicians and agronomists.
.
Research & Development
17
VarietyErika
Sun Belle México S.A. de C.V.:Mexican Raspberries
Research & Development
•Exclusive licensee for propagation and production of Erika raspberry variety.• Trial and development of Cornell University selections.
18
Variety100% Biloxi
Sun Belle México S.A. de C.V.:Mexican Blueberries
Research & Development
•Blueberry breeding and license agreements with University of Georgia.•Experimental blueberry plots.
19
Sun Belle México S.A. de C.V.: Los Reyes & El Atascoso, Michoacán Blackberries, Blueberries & Raspberries
3,383 acres (1,369 ha), which includes:
•GlobalGap.
•Sun Belle owned .
•Sun Belle experimental fields and nurseries.
•Blackberries.
•Blueberries.
Facilities•3,849 m2 (41,430 ft2) total
• 796 m2 (8,568 ft2) refrigerated
Experimental Fields & Nurseries•Germplasm evaluation, varietal crossings.
•Plant propagation
20
351 acres (142 ha) (1,369 ha), which includes:
•GlobalGap.
•Sun Belle owned.
•Tunnel Production.
•Experimental fields and
nurseries.
Facilities•1,177 m2 (12,669 ft2) total
• 351 m2 (3,778 ft2) refrigerated
Sun Belle México S.A. de C.V.: Zapotiltic & Jocotepec, JaliscoBlackberries, Raspberries & Blueberries
Experimental Fields & Nurseries•New variety trials and propagation.
21
3810 Rose StreetSchiller Park, IL 60176
T. 708.343.4545
Atascoso
3160 V Street, NEWashington, DC 20018T. 202.832.3900
2000 NW 70TH AvenueMiami, FL 33122T. 305.592.0005
5510 W. 102nd StreetLos Angeles, CA 90045
T. 847.609.0929
Sun Belle Inc.: U.S. LocationsAll Primus Certified
22
2011 Virginia Berry Production andMarketing Conference
• Q & A• Thank you
Ken Hopps - [email protected](708) 343-4545