INSIDE: THE PUNDIT EXAMINES AN INDUSTRY ISSUE VERSUS AN INDIVIDUAL OPPORTUNITY SNACK BARS • ORGANIC BERRIES • SUMMER MERCHANDISING STATE DEPARTMENTS OF AGRICULTURE • SOUTHERN VEGETABLES SOUTH AFRICAN CITRUS • CHERRIES • MANGOS • LETTUCE NEW LEAF COMMUNITY MARKETS RETAIL PROFILE • SALAD DRESSINGS UNITED FRESH BOOTH REVIEW • IFE BOOTH REVIEW WWW.PRODUCEBUSINESS.COM MAY 2015 • VOL. 31 • NO. 05 $9.90 WEIS MARKETS Closing The Loop On Sustainability recycle energy water community earth 30-YEAR RETROSPECTIVE WITH ROGER PEPPERL
Transcript
INSIDE:
THE PUNDIT EXAMINES AN INDUSTRY ISSUE VERSUS AN INDIVIDUAL OPPORTUNITYSNACK BARS • ORGANIC BERRIES • SUMMER MERCHANDISING
STATE DEPARTMENTS OF AGRICULTURE • SOUTHERN VEGETABLESSOUTH AFRICAN CITRUS • CHERRIES • MANGOS • LETTUCE
NEW LEAF COMMUNITY MARKETS RETAIL PROFILE • SALAD DRESSINGSUNITED FRESH BOOTH REVIEW • IFE BOOTH REVIEW
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.
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cover story27 WEIS MARKETS
Closing The Loop On Sustainability
PRODUCE BUSINESS / MAY 2015 / 3
MAY 2015 • VOL. 31 • NO. 05 • $9.90
features56SUMMER SCHOOLMerchandising tips for retailers in the upcoming season.
62STATE DEPARTMENTS OF AGRICULTURE:RETAIL PARTNERSHIPS TO GROW PRODUCE SALESLocal receipts reach record highs after branding initiatives make inroads with consumers.
66SOUTHERN VEGGIES GAIN TRACTIONA look at why commoditiesdown South achieve popularity.
70SOUTHERN HEMISPHERE CITRUS Ensuring year-round enjoyment of North America’s favorite fruits.
92DRESSING UP PRODUCE DEPARTMENTSSalad dressings provide additional cross-merchandising and add-on sales opportunities.
commentary8 THE FRUITS OF THOUGHT
McDonald’s Identity Crisis
100 RETAIL PERSPECTIVEQuality Redefined
102 EUROPEAN MARKETConversation With GlobalFruit Point’s Sven Heinsohn
104 WHOLESALE MARKETSYSCO/US Foods Merger:Good Or Bad For TheWholesale Industry?
105 VOICE OF THE INDUSTRYIn Pursuit Of A Paradigm Shift For Cranberry Sales
in this issue4 THE QUIZ
6 WASHINGTON GRAPEVINE
12 PRODUCE WATCH
18 RESEARCH PERSPECTIVES
19 COMMENTS AND ANALYSIS
20 FORWARD THINKING
106 INFORMATION SHOWCASE
106 BLAST FROM THE PAST
special features10UNITED FRESH BOOTH REVIEW
14IFE BOOTH REVIEW
22ASCENDENT INDEPENDENTS: NEW LEAF COMMUNITY MARKETSBuilding relationships with farmers to expand its independent niche.
24FROM THE PAGES OF THE PERISHABLE PUNDITWHAT IS IN A BRAND? Will Marketing Boost SalesOf Inconsistent Produce? Industry Issue Versus Individual Opportunity
4430-YEAR RETROSPECTIVE After 36 Years On Different Ends Of The Food Supply Chain, Roger Pepperl Proves His Sustainability
departmentsORGANIC MARKETING46 SETTING THE BAR FOR
EXCEPTIONAL ORGANIC PRODUCE An examination of retailers on the forefront of innovation for the category.
50 DEMAND RIPENS FOR ORGANIC BERRIESProducers struggle to keep pace amid complexity of transition from conventional crops.
MERCHANDISING REVIEWS74 MERCHANDISING CHERRIES FOR
MAXIMUM SALES AND PROFITSHow displays, special labels, signage,demos, social media and the roles they play generate sales.
82 UNTAPPED CONSUMERS ARE KEY TO INCREASINGMANGO SALESStore promotions, signage and associate education create distinction.
87 BULK LETTUCE ‘ROMAINES’ ON TOPStill a produce leader even with the proliferation of fresh-cut salads.
DRIED FRUIT AND NUTS98 MAKING THE CASE FOR NUTS
AND DRIED FRUIT IN PRODUCEVariety and health benefits are earningthese popular snack items a place alongside fresh fruits and vegetables.
Chris Auman, Carol Bareuther, Mark Hamstra,Mindy Hermann, Bob Johnson, Oscar Katov, JanelLeitner, Keith Loria, Steve Maxwell, Kristen Pope,Jodean Robbins, Anthony Stoeckert, Lisa White
How To Win! To win the PRODUCE BUSINESS Quiz, the first thing you have to do is enter. The rules are simple: Readthrough 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 abusiness card or company letterhead to the address listed on the coupon. The winner will be chosen by drawingfrom the responses received before the publication of our July issue of PRODUCE BUSINESS. The winner must agree tosubmit a color photo to be published in that issue.
QUESTIONS FOR THE MAY ISSUE1) According to Dole’s ad, what is the date for National Eat More Fruits and Vegetables Day? _____
Supervalu has more than 3,400 storesacross the U.S., and Mike Constantine is oneof the integral members of the grocery chain’smarketing arm.
“I work with the senior merchandiser towrite all the ads for all the banners and set allpricing, pick products for the circulars, any-thing that has to deal with the total [sales andmarketing] outcome of the produce depart-ment,” explains Constantine regarding his
THIS MONTH’S WINNER
MIKE CONSTANTINEMerchandiserSupervalu Inc./Pittsburgh Division
New Stanton, PA
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can practice your putting skills with this putting mat made fromhigh-quality, non-directional turf. This 8-foot long by 16-inch widepractice green features a regulation-sized hole, a “water hazard”and a “sand bunker” as well as a target flag (clubs and balls arenot included). The ball is electronically returned if you make it inthe hole and/or the hazard and bunker slots. The device plugsinto an AC outlet, and no batteries are required.
4 / MAY 2015 / PRODUCE BUSINESS
responsibilities as a merchandiser.Constantine has been with Supervalu for
many years and worked in different facets ofthe produce industry since 1979. “I have adegree in education, and when I first came toSupervalu in 1979, I was the training supervi-sor for new employees,” says Constantine.
He also spent time working with BethelPark Shop ‘N Save, sold Washington stateapples, pears and cherries for a company inthe Northeast, and worked at PowerhouseProduce, a potato and onion packing facility.Eventually he returned to Supervalu as mer-chandiser.
Constantine says the produce business isa “people-friendly business; there’s alwayssomething new happening—that’s how I gothooked.”
It’s that time of year again whenCongress wades through the weeds ofgovernment spending to develop nextyear’s budget. The important process ofestablishing spending priorities for all
federal government activities used to be arelatively straightforward process. Unfortu-nately, it has, of late, turned into anever-ending game of Bingo. Anticipationbuilds inside the beltway as Congress getsclose to a deal (or deadline), but then quicklyfades when a deal is not reached, and nobodygets to shout Bingo.
In theory, the process is simple. The pres-ident is required to submit his budget toCongress early in the year. The House andSenate then conduct hearings, questioningadministration officials and examiningspending requests. Congress was to have itsown budget resolution drafted and adoptedby April 15 — a date most Americans dreadfor an entirely different reason.
Interestingly, the congressional budgetresolution is not a law; the president willnever sign it. It merely acts as a guide, settinglimits for congressional committees that canpropose legislation that actually directsspending. And, though Congress and the pres-ident are both bound by law to produce theirown budget proposals, there is no penalty ifeither fails to do so.
The budget process provides a blueprintof the Administration’s and Congress’s visionsfor how to spend hard-earned tax dollars, andit sets the stage for legislative action thatactually allocates those dollars for the activi-ties of all federal agencies.
In the past six years, partisan politics,infighting and an inability to find commonground resulted in zero budgets beingpassed. Instead, it’s been round after roundof continuing resolutions — temporaryfunding extensions so the government cancontinue operating — which left businessesweary of investing; analysts scratching their
heads; and taxpayers growing outraged fromthe lack of progress made by the very peoplethey elected.
This year though, the House and Senateboth passed separate budget resolutions inMarch. And, as Republicans now control bothchambers, many in the GOP are quick toconnect the change in leadership to a break-through in the years-long budget stalemate.
For fiscal year 2016, the House resolutionprovides $4.7 trillion over 10 years while theSenate’s proposal calls for $5.3 trillion — adifference of $523 billion. Still early in theprocess, uncertainty remains as to how thebudget will specifically impact key agricultureand nutrition programs. In addition to cutsassociated with the FY 2016 budget, theHouse Agriculture Committee was instructedto come up with additional savings, which weanticipate will likely impact the SupplementalNutrition Assistance Program (SNAP).
More cuts and less money are two thingsneither of which the produce industry needsright now. Just last year, the 2014 Farm Billwas passed and signed into law, makingsweeping changes to the nation’s food andfarm policy, of which deficit reduction was amajor focus.
While some will argue that businesses andindustries have resources enabling them tofind ways to adapt and innovate with less,there comes a point when enough is enough.
In a recent letter to the leadership of theHouse and Senate Budget Committees, nearly400 interest groups — including dozens of
BY ROBERT GUENTHER, SENIOR VICE PRESIDENT, PUBLIC POLICY
food industry organizations — requested thatno additional cuts be made to the farm safetynet, conservation programs and nutritionprograms because the reforms from last year’sFarm Bill are just now being fully implementedby USDA. On top of that, our industry was hithard before the Farm Bill by sequestration —those automatic, across-the-board spendingcuts back in 2013.
From a business perspective, it simply isnot effective governing to put in place anyadditional or new cuts until current policieshave had time to take effect and be thor-oughly evaluated. From a moral perspective,we should not be cutting programs that willhelp feed underserved populations and helpAmerica’s most vulnerable children establishgood eating habits that will serve them wellfor life.
As of press time, both the House andSenate budget resolutions resided in confer-ence committee, where differences betweenthe two versions must now be ironed out inthe form of one single document. While itappears likely that a budget resolution for FY2016 will be passed, regardless of whether ornot that happens, the produce industry mustremain vigilant to ensure our hard-foughtefforts advancing much-needed resources ofthe fruit and vegetable industry in the 2014Farm Bill, are protected. In the coming weeksand months, we will advocate against morespecific cuts, so the produce industry cancontinue to deliver the most nutritious andabundant food supply to the consumer.
Budget Battle Nears End, But Uncertainty Still Lingers For Produce Industry
While it appears likely that a budget resolution for FY2016 will be passed, regardless of whether or not thathappens, the produce industry must remain vigilant toensure our hard-fought efforts advancing much-needed
resources of the fruit and vegetable industry in the 2014 Farm Bill, are protected.
how to position itself.Shortly before the McDonald’s announcement, Chipotle also made
an announcement that it was eliminating ingredients containing genet-ically modified organisms (GMOs) from its menu. It is a brilliant move,deeply cynical and bordering on ridiculous, but brilliant nonetheless.It shows that Chipotle understands its market positioning in a wayMcDonald’s does not.
Chipotle’s move is pure marketing genius. There is no indicationthat eating GMOs is bad for a person, and Chipotledoesn’t make that claim. It can’t. As a matter of fact,if the chain did claim anything of that nature, thenit would be sued for product disparagement.
Its plan is filled with giant loopholes. Even thenormally left-wing folks at the Center for Science inthe Public Interest called the position hypocritical —essentially on the grounds that sodas are made withcorn syrup, and all corn syrup basically is made withGMO corn.
But Chipotle is not planning on enforcing theserules against the soda companies. Chipotle itself
uses very little GMO product — corn tortillas and soybean oil mostly— so renouncing these ingredients is cheap. The big use of GMOs isthe soda and the animal feed. But Chipotle doesn’t count the animalfeed — that would be pretty expensive to replace.
The big health concerns at Chipotle? The sugar in soda and lots ofsalt. A recent New York Times article critiquing the chain’s menu saida typical Chipotle meal uses up to a full day’s recommended saltallowance, but there are no plans to deal with either of these issues.
There is a bunch of technicalities proving Chipotle’s position isinconsistent. Chipotle doesn’t like GMOs, because GMOs allow farmersto use an herbicide named glyphosate (most commonly associatedwith Roundup), which kills weeds but not the GMO plants. Sunflowers,which make the new sunflower oil Chipotle is switching to, are bredwithout GMOs to tolerate ALS inhibitors, another class of herbicides.There is no reason Chipotle should prefer one over the other.
Despite all this, the always incisive essayist and author VirginiaPostrel nailed the point: “... even if you don’t care about GMOs, thedecision sends a positive signal. It’s a high-profile sign that Chipotleis paying close attention to the ingredients in its food. ReplacingGMOs required reworking recipes, finding new suppliers and payingmore for canola oil. It demanded concentrated effort. The process rein-forces the message that Chipotle isn’t just doing what’s easy or cheap.It reminds customers that the company isn’t delivering generic, mass-market meals … Chipotle cares about the food.”
If McDonald’s wants to succeed, it doesn’t need to reorganize whichcountry is in which division. It needs to answer the question: “Whatdoes McDonald’s care about?” pb
BY JIM PREVOR, PRESIDENT & EDITOR-IN-CHIEF
McDonald’s chief executive Steve Easterbrook recently gave amuch-anticipated video presentation in which he announced“the initial steps of the company’s turnaround plan.” He really
didn’t announce a turnaround plan; he announced an organizationalrevamp — basically dividing McDonald’s up into four internal “marketsegments.” The idea being to unite businesses with similar growthstrategies rather than those that happen to be geographicallycontiguous. It may be marginally better than the current organization— though I doubt China and Switzerland, both“high-growth markets” for McDonald’s, actually havemany similarities.
The other big initiative is to sell off 3,500company-owned restaurants to franchisees. This isstandard strategy. Selling the restaurants means thecorporation makes money off licensing fees andwhatnot; since very little capital is involved in this,it leaves the company with a much higher return oninvestment than if it owned a lot of brick-and-mortarproperty. However, it is also true that it makes thecompany harder to control. The chefs at headquar-ters have some brilliant ideas; but bringing something from inspirationto actual product on the menu is very difficult at McDonald’s, becausethey have to win franchise approval.
The rest of the announcement was financial legerdemain —returning money to shareholders or vague promises of General andAdministration (G&A) cost reductions that somehow will fall right tothe bottomline.
The obvious questions confronting McDonald’s: l How will it compete with more hip or upscale offerings —
everything from In-N-Out Burger, to Five Guys Burgers andFries, to Shake Shack?
l What will it do about menu proliferation and its impact onservice time?
l What will McDonald’s mean in the years ahead? The presentation was silent on all these topics and more.Strategically, McDonald’s faces the same problem that mainstream
supermarket chains do. Not all that long ago, the local supermarketserved everyone in the community. Now, markets are fracturing. Sothe competitive threat is not typically another supermarket trying todo the same thing a little better. The new competitive threat is an Aldiopening down the block, a Costco opening in the neighborhood, aWhole Foods appearing nearby, an Internet shopping service opening,the drug store adding a larger food department that includes morefresh items — none of these shopping iterations take the place of asupermarket, but all threaten its livelihood.
Equally, now one can have breakfast at Starbucks, grab a moreupscale burger at BurgerFi, or eat alternative cuisine at Chipotle, andlike that old community supermarket, McDonald’s just isn’t clear on
Strategically,McDonald’s facesthe same problemthat mainstream
Naturipe Farms consistently brings youvibrant, delicious and nutritious berries.Since 1917, generations of family farm-ers in local communities producedthese berries responsibly, with integrityand respect through all the seasons ofthe year.
BOOTH #1242REICHEL FOODS, INC.ROCHESTER, MNConsumers top choice for “fresh to go”produce snacks with dip. Retailers bene-fit from sustainable packaging, extendedshelf life, outstanding quality and variety,as well as stimulating and multiple unitsales at purchase. Several shelf-merchan-dising displays pro-vide the opportu-nity to merchan-dise all 12 Dippin’Stix flavors in only36 inches of shelfspace.
BOOTH #1245PROGRESSIVE PRODUCELOS ANGELES, CAProgressive Produceprovides customersa national supply ofAmericas Asparagusyear-round. Progres-sive has thousandsof acres of farm-fresh asparagusgrown throughoutthe “Americas” inMexico, Peru, Cali-fornia and Washington. Available in bulkand retail packages.
BOOTH #1246PURE FLAVORLEAMINGTON, ON
Marzanito mini SanMarzano tomatoes— amazingly goodtasting for cookingand perfectly sizedfor all your everydaysnacking needs.
BOOTH #1344TIGER COOL EXPRESSOVERLAND PARK, KS
Tiger Cool Express solves the problem ofreliable, asset-based capacity in long-haulproduce shipping. A temperature-con-trolled intermodal provider with routesfrom all major growing areas, Tiger Cooloffers unbeatable advantages. Stop byand visit with our team. Whether yourpain point is cost or capacity, we can help.
BOOTH #1521SUNKIST GROWERSVALENCIA, CALike a cherished family recipe handeddown through generations, our citrus isnurtured by more than 120 years ofexperience. At Sunkist, we’re deeply com-mitted to tradition, but also to innovationand sustainability on the farm and in themarketplace — embracing freshapproach-es for cit-rus loverstoday andtomorrow.
BOOTH #1554LINKFRESH VENTURA, CA
LINKFRESH Inc. is a software and IT con-sultancy with extensive fresh producesupply chain expertise. LINKFRESH ERP isa complete business management solu-tion for the fresh produce supply chain.Our customers include: The GiumarraCompanies, Gourmet Trading, AlsumFarms & Produce and The Fresca Group.
BOOTH #1609BLUE BOOK SERVICESCAROL STREAM, ILWhether a sales team requires moreleads or a credit team needs Ratings &Scores, Blue Book membership gives thebusiness information necessary to growand protect any business. We have thedata to make confident business deci-
sions. Stop by tolearn why we arethe industry’s trust-ed resource!
BOOTH #1711PRODUCE PRO SOFTWAREWOODRIDGE, ILProduce Pro is a fully integrated softwaresolution for wholesale food distributors,terminal markets, grower/packer/ship-pers and processors. Produce Pro’s soft-ware provides real time inventory, trace-ability, reporting and accounting capabili-ties. Produce Pro’s powerful software
solutions together with itsperishable food industryexpertise and business con-sulting services allow theirclients to take their compa-ny to the next level.
BOOTH #1743INDIANAPOLIS FRUITINDIANAPOLIS, INFamily-owned and -operated, Indianapo-lis Fruit supplies grocers and retailers inmore than 14 Midwestern states with thefreshest and safest fruits,vegetables and otheressential produce items.Capitalize on the risingpopularity of convenienceproducts with healthyfresh offerings from Gar-den Cut ToGo snacks.Let’s Produce a FreshExperience Together!
BOOTH #1456STEMILT GROWERSWENATCHEE, WAStemilt is a leading and family-ownedsupplier of fresh apples, pears, cherries,and summer fruits from Washingtonstate. See new Fresh Blenders apples,Lil Snappers kid-sized fruits, and moreat the booth.
Fox Packaging is a family-owned and -oper-ated manufacturer of innovative packagingsolutions for onion, citrus and vegetables.Sister company, Fox Solutions, provideslabor-saving equipment solutions thatimprove operational efficiencies andincrease your bottomline.
BOOTH #1650RUBY FRESHFIREBAUGH, CA
Ruby Fresh is apremium sup-plier of wholepomegranatesand year-roundpackaged arils.Our popular
Jewels Grab-n-Go Arils, in convenient 4-and 5.3-ounce snack cups, are now avail-able in handy 2-packs and 4-packs.
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BOOTH #1752USDA AGRICULTURAL MARKETING SERVICEWASHINGTON, D.C.USDA’s Agricultural Market-ing Service (AMS) serves the
needs of the U.S. fruit andvegetable industry. AMSgrades and inspects prod-uct to enhance communicationbetween buyers and sellers, fostersfair trade, and partners with state andindustry boards to help overcomemarketing barriers. Visit us and cele-brate our Fruit & Vegetable MarketNews 100th Anniversary!
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BOOTH #1804RED SUN FARMSKINGSVILLE, ONRed Sun Farms’ Greenhouse grown pro-duce provides you with greenhouse per-fection — all year long. We’re known asyour greenhouse go-to team, with pro-duce grown in Canada, U.S. and Mexico.Our regional sales teams are here to sup-port your greenhouse category needsincluding planning support, marketingsupport, and new product launch sup-port. Stop by to learn about our newOrganic Series, which includes collectionof tomatoes, bell peppers and cucumbersorganically grown indoors for freshnessthat lasts.
BOOTH #1819VOLM COMPANIES, INC.ANTIGO, WI
Visit Volm to findout how we’rebringing fresh pro-duce from packingfacility to market.Volm is an industrymanufacturer anddistributor of fresh produce packaging,packing equipment and packing facilitywith full equipment integration, designand engineering.
BOOTH #1832CRUNCH PAKCASHMERE, WACrunch Pak, the fresh sliced apples spe-cialist, will launch three items at the Unit-ed Fresh Expo: a DipperZ snack tray fea-
turing the Disney charac-ter Olaf from the popularFrozen movie; a Tart Applewith Salted Caramel Dip-perZ; and a Sweet Applewith Strawberry GreekYogurt DipperZ. The threeitems are extensions of theCrunch Pak branded Dip-perZ line.
BOOTH #1908PRODUCE BUSINESSBOCA RATON, FLPRODUCE BUSINESS deliversmarketing, merchandis-ing, management andprocurement insights toretail, foodservice andother buyers. Its 30-year relationship withleaders worldwide is extended throughsister publications, Jim Prevor’s Perish-ablePundit.com and PerishableNews.com,in addition to The New York ProduceShow and Conference and The LondonProduce Show and Conference.
BOOTH #1934NEW JERSEY DEPARTMENT OF AGRICULTURETRENTON, NJThe New Jersey Department of Agricul-ture represents New Jersey’s diverse fruitand vegetable industry, and serves as aresource for buyers interested in sourcing
New Jersey farmproducts. For morethan 30 years, JerseyFresh has been theDepartment’s venueto advertise and pro-mote New Jersey’sfarm products.
BOOTH #2114KWIK LOK CORPORATIONYAKIMA, WAExplore and experience Kwik Lok’s worldof solutions for your bag closing needs. Inaddition to bag closing, we offer compa-nies a way to advertise, promote, andtrace their product using the Kwik Lokclosure or closure label. Also, for the firsttime, come see the ARC Kwik Link Binder.
BOOTH #2118EARTH SOURCE TRADINGEPHRATA, PAThe produce industry is changing morerapidly than ever! Are you ready? AtEarth Source Trading, we’re positionedwith the freshest product and innovativesolutions to help you navigate this chang-ing landscape.
BOOTH #2203SAN MIGUEL PRODUCEOXNARD, CA
The Growing Standard of Greens. SanMiguel Produce is a vertically integratedgrower/processor from California andGeorgia celebrating 20 years of the origi-nal Cut ‘N Clean Greens. Organic greens,Asian vegetables and Persian herbs areavailable.
BOOTH #2604MAXWELL CHASE TECHNOLOGIESATLANTA, GA
Maxwell Chase Technologies specializesin the development and manufacture ofpatented absorbent packaging that deliv-ers freshness and extends shelf life offresh foods. Our product line includesabsorbent pads, pouches, trays, tray seal-ers, lidding films, as well as tomato andonion slicing equipment. We are nowintroducing “mini containers” for fresh-cut fruit.
BOOTH #2214MIXTEC GROUPGLENDALE, CAAs the No. 1 executive search firm in pro-duce, we are proud to have spent thepast 30 years providing exceptionalrecruitment and leadership consulting toleading companies in our industry.
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TRIANGLE PACKAGE MACHINERY COMPANYCHICAGO, ILWith a diverse product line that includesvertical form fill seal (VFFS) baggers, com-bination weighers, rotary depositors/trayloaders, and more, Triangle is your singlesource for automated produce packagingsolutions. Our X-Series is a line of techni-cally-advanced, oper-ator-friendly baggingmachines — avail-able with Ultrasonicwelding or traditionalheat sealing.
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BOOTH #2211NORTH CAROLINA DEPARTMENT OF AGRICULTURERALEIGH, NCThe North Caroli-na Department ofAgriculture andConsumer Servicesprovides servicesthat promote andimprove agriculture, agribusiness andforests; protect consumers and business-es; and conserve farmland and naturalresources for the prosperity of all NorthCarolinians.
BOOTH #2019 PAKSENSEBOISE, ID
Cold chain monitoring at your fingertips.PakSense helps retailers, suppliers, grow-ers, and restaurants ensure that only thefreshest and safest foods reach con-sumers. Learn more about our compre-hensive cold chain monitoring system,AutoSense.
BOOTH #2021CALIFORNIA GIANT BERRY FARMSWATSONVILLE, CAIt’s peak season at Califor-nia Giant, so be sure tostop by and learn aboutour summer promotions in place andhow you can capitalize on increasedsales. We also have free training tools tohelp store level personnel maintain thecold chain providing quality fruit to theconsumer.
BOOTH #2021BRAGA FRESH FAMILY FARMSSOLEDAD, CABraga Fresh Family Farms sells Josie’sOrganics brand premium-quality organicvegetables, inspired by grandmother, JosieBraga. Today, the Bragas farm their homeranch, estab-lished in the1920s, plusthousands oforganic acresthroughoutCA and AZ.
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AISLE 2400 BOOTH #2414MULTIVACKANSAS CITY, MOMULTIVAC invites you to join us at Unit-ed Fresh 2015. MULTIVAC is sure tohave a packaging solution that suits yourneeds. From thermoformers, traysealers,chamber machines and labeling equip-ment, come see how MULTIVAC canhelp you package better.
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produce watch
HARVEST SENSATIONSLOS ANGELES, CAProduce industry veteran, Doug Ranno, isnamed president of Harvest Sensations bythe company’s board of directors. One of
America’s top specialty produce,retail and foodservice distribu-tors, Harvest Sensations hasstate-of-the-art facilities in LosAngeles, CA and Miami, FL.Ranno will lead the companyand its growth in all areasincluding strategic planning,
business development andoverall team development. Hewill report to the Harvest Sensa-tions board of directors, currentlychaired by Charles Gilbert.
MANN PACKINGSALINAS, CAMann Packing hires Pam Hudson as the manager ofmarketing and communications. In this role,Hudson will oversee the company’s advertising andpromotional programs while engaging in customerand consumer marketing support. Hudson has adiverse background in marketing with experience in
brand building,agency managementand sales resourcedevelopment. Priorto joining Mann, sheheld variousmarketing positionsat Superior FoodsInc. in Watsonville,Williams-Sonoma,Inc., ParamountPictures and FoxBroadcasting, as wellas owned a smallbusiness.
CENTRAL AMERICAN PRODUCEPOMPANO BEACH, FLAs part of a strategic growthplan, Central AmericanProduce hires DavideScarsini and Marissa Geof-froy to its staff. Scarsini, a12-year veteran, joins thecompany as a senior salesrepresentative. He was mostrecently employed bySouthern Specialties. Geof-froy is assuming the positionof director of strategic initia-tives and will be initiallyworking in the areas oflogistics and new softwareimplementation. She wasmost recently employed byTopco Associates.
HALF YOUR PLATE CAMPAIGNWELCOMES CHEF MICHAEL SMITH AS AMBASSADOR
The Half Your PlateCampaign announceschef Michael Smith willact as the brand’s newambassador. One ofCanada’s most recog-nizable chefs, Smith isa passionate advocatefor cooking fresh,healthy food at home.Host of Chef Michael’sKitchen, Chef Abroadand Chef at Home onFood Network Canada,
Smith devoted his life to helping Canadians createa healthy food lifestyle that includes lots of dailyfruits and vegetables.
TRANSITION TRANSITION
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VISION COMPANIES EXPANDSCUCUMBER PROGRAMThe Los Angeles, CA-based Vision Companies isadding another item to its extensive list of "growerdirect" deals with an exclusive shade housecucumber program starting Mid-April out ofCaborca, Mexico. In collaboration with the AgricolaLos Chacuales partner of growers, the La Visiõnlabel will accompany this program that will beavailable starting the second week of April throughJune. This relationship has led Vision Produce andits growers to explore new markets together.
SEALD SWEET EXPANDS GRAPE PRODUCTIONSeald Sweet International, Vero Beach, FL,announces the expansion of its commodity divisionthrough long-term commitments and substantialfinancial investments, which increases productionof the Mexican grape program. These agreementsbring significant growth, primarily in the Hermosilloand Caborca areas, to its current supply of freshtable grapes.
Produce & Floral Watch is a regular feature of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature,along with a color photo, slide or transparency to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]
ONEONTA STARR RANCH GROWERSTO HAVE NEW ZEALAND HONEYCRISPTHIS MONTHOneonta Starr RanchGrowers will fill a five-week window withHoneycrisp NewZealand applesstarting this month.The national salesrepresentative BruceTurner said in acompany pressrelease that the newcrop, which exhibits “outstanding color, flavor andtexture,” is grown in the Timaru region of theCanterbury Plains on the nation's south island.Turner also said the growers' expertise and thenatural growing conditions produce “the perfectblend of sugars and acid, and the crunch and juici-ness are terrific. We're seeing better color and moreoptimal retail sizes than Honeycrisp from otherSouthern Hemisphere growing areas.”
DIMARE FRESH INDIO, CADiMare Fresh welcomes BobWright and Charlotte Vernonto its team. A veteran in theproduce industry, Wrightbrings a breadth of knowl-edge and executiveleadership and managementskills to the DiMare Interna-tional team with more than25 years of experience.
Vernon, previously atSunWorld International,brings more than 30 yearsof experience with a strongemphasis on businessdevelopment and sales toher new role as a DiMareIndio Sales Associate. Herappointment comes at atime of major growth forDiMare Indio citrus division.
TRANSITION
TONY FREYTAG TOCHAIR PRODUCEINDUSTRY BOARDTony Freytag, senior vicepresident of sales andmarketing for Cashmere, WA-based Crunch Pak, wasnamed chairman-elect forthe United Fresh ProduceAssociation board of direc-tors. Originally from Austin,TX, Freytag is a graduate of the University of Texas.His career in produce began with Naumes, Inc., ofMedford, Oregon, in 1997 where the idea of slicedapples was first introduced. Prior to joining theproduce industry, Freytag held several manage-ment positions specializing in inventory and salesprograms for retailers including Bloomingdales,Saks Fifth Avenue and Neiman Marcus.
CONCORD FOODS LAUNCHES BLUEBERRY BANANA SMOOTHIE MIXConcord Foods, Brockton, MA, is introducing a newaddition to its line of easy-to-make smoothiemixes: Blueberry Banana Smoothie Mix. Consumerswill be able to purchase the mix in the U.S. starting
this month. The mix is packaged in a1.3-ounce pouch, and itwill be displayed inproduce departments.The suggested retail is$1.29/pouch. Thesepouches are available toretailers in 18 packcases, 48 pack clip strips,72 pack floor shippers, oras a 144 pack combina-tion shipper with the Kale& Apple Smoothie Mix.
C.H. ROBINSON RECEIVES 3PL AWARD FROM WAL-MARTWal-Mart Stores, Inc. recognized C.H. Robinson,Eden Prairie, MN, with the retail leader’s first-ever3rd Party Logistical (3PL) Carrier of the Year awardfor 2014 noting contributions for outstandingservice, effective communication, and providingsolutions and innovations in a changing industry.Last year was filled with challenges in the area oflogistics and transportation, with extreme weatherconditions and capacity issues challenging theindustry as a whole. Through dedicated hard workand strategic collaboration, C.H. Robinson was ableto exceed Wal-Mart’s expectations as a logisticsservice provider.
PRODUCE BUSINESS / MAY 2015 / 13
Produce & Floral Watch is a regular feature of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature,along with a color photo, slide or transparency to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]
SETTON FARMS ANNOUNCES DISTRIBUTION IN AIRPORTSSetton Pistachio of Terra Bella, Inc. announces thenew distribution of its Premium Dark ChocolatePistachios in airports around the world. The pista-chios are now available in more than 100 airportretail locations in U.S. airports such as JFK,Newark, Islip, Burbank, Long Beach, San Diego,San Francisco, and Phoenix. Stores carrying theproduct include CNBC News, Market Place, NYTimes in addition to International Duty Free shopsacross the globe.
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HOUSE FOODS INTRODUCES SMART NOODLEHouse Foods, Garden Grove, CA, a premium tofupurveyor, introduces Smart Noodle — a newproduct that contains fiber from oats and rice bran,and Omega-3. Available in late spring, SmartNoodle will be offered in fettuccine and spaghettishapes. With only 20 calories, 6 grams of fiber and400 mg of ALA Omega-3 per serving, Smart Noodleis an easy and nourishing replacement to virtuallyany high-calorie pasta dish. Smart Noodle does notcontain any tofu, but is comprised of noodlesubstitutes made from Konjac (an Asian yam),flaxseed, oat and rice fiber.
RPE’S TASTEFUL SELECTIONS OPENS NEW FACILITY
Tasteful Selections, a vertically integrated grower,shipper, marketer of premium specialty potatoes inBancroft, WI, celebrates its investment in the futureof the potato industry with the grand opening of itsnew 200,000 square foot state-of-the-art facility inBakersfield, CA. The celebrations kicked off with aribbon cutting ceremony, press conference,luncheon and tours of the facility. Tasteful Selec-tions potatoes are proudly marketed by RPE.
OCEAN MIST FARMS UPGRADES COACHELLA FACILITY
Ocean Mist Farms, Castroville, CA, is expanding itscooler facility in Coachella, CA, this spring to be inoperation for the Fall 2015 desert-growing season.When completed, the facility will have double thecooling and storage capacity and twice as manybays for receiving and loading trucks. Ocean MistFarms grows and cools artichokes and 30 otherfresh vegetables at the Coachella facility.
VILLAGE FARMS & FLORIDA ORGANIC FARMS ENTER EXCLUSIVE DISTRIBUTION AGREEMENT
Village Farms International Inc., with U.S. headquar-ters in Heathrow, FL, and Florida Organic Farms Int.LLC., in Okeechobee, FL, announce an exclusivedistribution agreement between the two compa-nies. Village Farms will offer USDA-certified organicfruits and vegetable to its customers beginning inthe fall of this year. This is a first time Village Farmswill partner with another farmer to offer organicproduce under one of the company’s labels.
LIMONEIRA INTRODUCES LEMON MISFITSLimoneira Company, an agribusi-ness with agricultural land andoperations, real estate and waterrights in California, announcesthe introduction of LemonMisfits. The lemons come in avariety of sizes and pack-aging/pallet configurations.Consumers can juice upLemon Misfits for a variety offamily occasions, andMisfit Madness Recipeswill be featured onLimoneira’s websiteand throughLimoneira’s global opinionleader network and social mediabloggers. Retailers can receive point of sale mate-rial for their stores.
COLORFUL HARVEST OFFERS PARTY TRAYColorful Harvest, Salinas, CA, now offers a crystalclear 20-ounce party tray that combines famousRainbow Crunch Carrots with multi-colored cauli-flowers and a sweet onion honey Dijon dippingsauce. With more acres of colorful veggies undercultivation for the new party tray, Colorful Harvestanticipates consistent year-round supply.
BOOTH #139JETRAM SALESSt. Louis, MOJetRam's Jetwrap Delivery System givesthousands of florists the ability towrap arrangements quickly andefficiently. The combination ofbox and sleeve dramaticallyimproves any arrangement andprotects them from weather andtransportation damage. Ourproducts work together seam-lessly to give florists a fast,efficient, and professional look.
BOOTH #224PENANG NURSERY INC.Apopka, FLFor more than 30years, Penang Nurseryhas been a topproducer of uniquebamboo, bonsai, andtabletop gardens, including the popularbraided Pachira tree. We pride ourselvesin offering beautifully designed gardensin the latest, trend-setting containersavailable at an exceptional value.
BOOTH #250WORLD CLASS FLOWERSEgg Harbor City, NJMiami, FL
GROWER/PLANNER/MARKETER/INNOVATOR — Let us create your nextwinning program!
BOOTH #260KOEN PACK Miami, FLWe specialize in containers and vases,films, sleeves, wraps and pot covers.Especially known for our innovativepackaging for potted plants andbouquets, we have a large inventory ofsleeves, sheets, picks, bags and otheraccessories to enhance the look of yourfinal product.
BOOTH #341TRIUMPH PLANT CO.New City, NYTriumph Plant Company specializes inunique plant products. See our Crayola— ‘My First Garden’ Children’s seed kitsand our Gardening for Dummies‘Gardening for the rest of us’ planter kits.We also have real mistletoe, hanging
salad gardensand air fern.
BOOTH #404HIAWATHA CORPORATIONShelton, WAHiawatha Evergreens,a pioneer in the floralindustry, has beenexhibiting at the SuperFloral Show/IFE for 24years. We’ve been supplying freshChristmas greens, Western greens andMoss products from the Pacific North-west since 1938. Stop by our booth to seeour greens and our new products for2015.
BOOTH #244HOMESTEAD GROWERS NIAGARA INC.Vineland, Ontario, CanadaSee the wonder of the potted Calla Lilyat our booth. Our inventive and funbooth theme will inspire your creativejuices to pump up your own floraldepartment! Fabulous colors andamazing quality will be showcased.
BOOTH #219TAIWAN ORCHID GROWERS ASSOCIATION (TOGA)Tainan City, TaiwanTOGA is a nonprofit organization thatassembles wholesale growers and distrib-utors in Taiwan to promote the orchidindustry and develop various markets.We prepare domestic and internationalpromotions for the Taiwan InternationalOrchid Show. We also enhance the coop-eration between growers and distributorsto accelerate the development of theorchid industry.
INTERNATIONALFLORICULTUREEXPO
BOOTH #200B AND H FLOWERSCarpinteria, CAB and H Flowersproduces a variety ofc omme r c i a l ,VeriFlora-certified flower crops forboth mass retail and wholesale distri-bution, providing customers nationwidewith sustainably grown, vibrant, andlong-lasting California flowers. Sustain-ably grown for a beautiful world.
BOOTH #100SHATLEY FARMS LLCWest Jefferson, NCWith farmland in production in NorthCarolina and Virginia, Shatley Farms isone of the largest producers of Fraser FirChristmas trees in the U.S. We have beena reliable supplier of top qualityChristmas trees and evergreen productsshipped fresh, on schedule, and to gradefor more than 35 years.
BOOTH #118ALEXANDRA FARMSCoral Gables, FLAlexandra Farms is aboutique garden rosegrower located highin the Andes Moun-tains of Colombia.We specialize ingrowing fragrant, nostalgic and beautifulgarden roses that have been selected asoptimal as cut flowers. All of our roseshave a 10 to 12 day vase life after a five-day shipping window.
BOOTH #104HI-RISE BALLOONS & FLORALSUPPLIESAustin, TX Want to increaseballoon sales andreduce costs relatedto helium, inven-tory, and labor?Visit our booth at the IFE Show to learnhow Hi-Rise can help.
BOOTH #137STAR VALLEY FLOWERSSoldiers Grove, WIThe Midwest's largest field-grown, cutflower producer of fruiting, floweringand decorative branches. Peonies andvarious herbaceous perennials alongwith unique wild crafted local findsround out our selection. Grocery stores,garden centers, event planners, land-scapers, wholesale and retail florists areall pleased to find our unique qualityproducts.
JUNE 8-10, 2015MCCORMICK PLACE CONVENTION CENTER, CHICAGO, ILLINOISNew Strategy: Co-location! The International Floriculture Expo is an annual event where the floralindustry gathers to discover new products, source new suppliers, network, and learn. IFE 2015 will be co-located withUnited Fresh and FMI Connect in Chicago at McCormick Place. The combination of these powerful events will bringtogether cross-category retailers from high volume mass markets and mid-size grocers, to independent operators fromthe local, national and international markets. The Education Program is on Monday, June 8, and the two days ofexhibits featuring more than 225 exhibitors will be held June 9 to 10. For more details on the event produced by Diver-sified Communications of Portland, ME, see floriexpo.com. (Booth numbers subject to change.)
14 / MAY 2015 / PRODUCE BUSINESS
Floral Watch is a regular feature of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a high-resolution image to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected].
floral watch
AISLE-BY-AISLE BOOTH REVIEW
BOOTH #221FLOWERS CANADA GROWERSGuelph, Ontario, Canada Flowers Canada Growers represents flori-culture greenhouse growers and industrypartners. We produce the CanadianGreenhouse Growers' Directory & Buyers'Guide, a valuableresource tool for thefloriculture industry.
BOOTH #459ENCORE FLORAL MARKETINGGrand Rapids, MIWe will showcase a selection of colorbouquets, arrangements and balloons.Importing allows us to bring togetherproduct from countries around the worldinto our unique offerings. In addition,our Miami and Dallas facilities enhance
our distributionopportunitiesnationwide.
BOOTH #611ALDERSHOT GREENHOUSES LTD.Burlington, Ontario CanadaOne of North America’s premier pottedblooming producers — Aldershot Green-houses Ltd. unsurpassed commitment toquality has made us atop producer of pottedblooming plants inNorth America. Longlasting blooms for homeand office, AldershotGreenhouses Ltd. pottedplants perform with excellence.
BOOTH #644MEYERS FLOWERSNiagara-on-the-Lake, Ontario, CanadaWith 15 plus acres of greenhouse spaceand more than 50 years of experience,Meyers is the premiere choice for qualitypotted flowers. Our floral products rangefrom spring bedding plants to holidaycrops such as Poinsettias and Easter lilies.We are very accommodating with our
variety of weeklyflowers and promo-tional programs.
BOOTH #669WESTBROOK FLORAL LTD.Grimsby, Ontario, CanadaWestbrook Floral Ltd. is a full-servicewholesaler offering floral supplies, homeand garden décor, botanicals and pottedplants. In our 1.5 million square feet ofgreenhouses, we specialize in supplyingNorth America with Mini Roses,Phalaenopsis Orchids, Kalanchoes,African Violets, Ferns, Succulents and
seasonal pottedplant varieties.
BOOTH #800BURTON + BURTONBogart, GAburton + BURTONwill showcase 2016Valentine andSpring products atthis year's IFEshow. Come by to see the latest designsin balloons, plush, pot covers, ribbons,and more! burton + BURTON is afamily-owned and -operated business,serving the floral industry since 1982.
BOOTH #805GALLERIA FARMSMiami, FLWe are one of the largest growers ofchrysanthemums and specialty flowers inthe world with more than 100 hectaresin production. Galleria Farms is a solu-tion and service provider of premiumfloral products to mass retailers andsupermarkets.
BOOTH #814SUNSHINE BOUQUET COMPANYMiami, FLGet ready tobe blown awaywith the latesttrends andcutting edgedesigns this year at Sunshine Bouquet’sbooth at IFE. Our stellar product line isgetting a fresh look with the addition ofour new premium California enhancedbouquets, the perfect way to helpincrease your sales!
BOOTH #650SYNDICATE SALESKokomo, INSyndicate Sales is a manufacturer,importer, and distributor of more than1,500 items to the floral industry. Brandnames including Aquapic, Aquafoam,Aquaplus the Difference is Clear, Aqua-hold, Garden Collection, Hoosier Glass,and designer vases are knownthroughout the industry as representingthe highest quality products.
BOOTH #555P.N.P. PLAST Altopascio Lucca, ItalyP.N.P. PLAST manu-factures anddistributes productsfor flower, gift and confectionery pack-aging. Polypropylene rolls, sheets andpot covers: a wide range that well repre-sents the Italian quality. Our 30 years ofexperience in Flexo-technology alongwith our own inner graphic studio,allows us to create nice items and person-alized ideas.
BOOTH #470THE PINERY LLCEscondido, CAWe are growers ofliving Christmastrees and Rose-mary for theholidays. Ourbeautifully sculpted miniature trees addfreshness, fragrance and flair to anysetting whether in the home, courtyard,kitchen or workplace. Stop by and expe-rience our aromatic varietals of Rosemary,Pine and Cypress.
BOOTH #423DECOWRAPSDoral, FLDeco Wraps is a leading supplier ofdistinctive packaging options for freshflowers and potted plants. We offerprompt service, simplified logistics, andcompetitive pricing. We create productsthat are always fresh and innovative.Come visit us and see our exciting newitems.
BOOTH #434CHRYSAL AMERICASMiami, FL
Chrysal Americas is an internationalcompany offering a multitude of prod-ucts for the complete nutrition and careof fresh-cut flowers for growers, whole-salers, florist and supermarkets in theU.S., Canada and Latin America.
BOOTH #426BAYVIEW FLOWERSJordan Station, Ontario, CanadaWith more than 40years of experience,we specialize in potted plants, dishgardens, indoor tropical foliage alongwith cut greens and fresh-cut flowers.Our vases, containers and home décoritems will entice your customers. Counton us for quality and innovation to keepyour floral department fresh andinviting.
BOOTH #438FRESHBLOOMSSewell, NJFreshBlooms is an accomplished floralimporter and full-service distributordedicated to servicing all facets of thefloriculture industry. We present anextensive variety of premium fresh-cutflowers from our worldwide farm sourceswhile providing custom-made promo-tions, innovative product lines,hardgoods, and integrated logistics.FreshBlooms brings it all together.
AISLE-BY-AISLE BOOTH REVIEW
INTERNATIONALFLORICULTUREEXPOJUNE 8-10, 2015
PRODUCE BUSINESS / MAY 2015 / 15
Floral Watch is a regular feature of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a high-resolution image to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected].
BOOTH #902FLORAL EXPRESSBensenville, ILFloral Express isthe Midwest’s leading wholesale andmass-market service provider specializingin handling and distribution. The 2015Floral Express will join the ChicagoDepartment of Aviation in the finalizingplans for opening the Perishable Center.This will provide multiple layers ofservice into the Midwest and expandglobal markets.
BOOTH #973THE ELITE BOUQUET Miami, FLLocated in the heart ofMiami, Elite also hasfour other U.S. locations covering thesurrounding regions of New Jersey,Chicago, Denver and Los Angeles. Elite’sprimary imports are roses, spray roses,gerberas and alstroemeria. See Elite forbouquets, consumer bunches, cut greens,fresh arrangements, grower bunches,fresh-cut and specialty cut flowers.
BOOTH #1022A-ROO COMPANYStrongsville, OHFor more than 40years A-ROO createdmarketing, merchandising and pack-aging solutions for the floral industry. Wehave containers and vases, decorativepackaging, display fixtures and acces-sories, films, sleeves and wraps, potcovers, ribbons, bows and picks. Officesin Ohio, Florida, Texas and Californiaprovide service to North, Central andSouth America.
BOOTH #1036POTTER INC.Bryan, OHPotter Inc. special-izes in products toenhance floral and produce departments.Our hand-tied bows and corsage lines areproudly made in the USA. Potter Kitprograms create gift-ready merchandise,quickly and easily, in today’s labor-crunched market. Visit us at our booth tosee our new 2015/2016 upgrades.
BOOTH #1050TEMKIN INTERNATIONALPayson, UTWhether its a coordinated program, astylish new sleeve, or a custom floralpick, Temkin International will help youcreate an enticing look for your blooms.Temkin’s coordinated sheets, sleeves andaccessories make it easy to craft a strikingdisplay with designs made for every
season, holidayand specialoccasion.
BOOTH #1058AVERY IMPORTS/WILLOW GROUP LTD.Batavia, NY
Whether you are a garden center, florist,greenhouse, nursery, designer or giftstore, Avery Imports offers a variety ofmore than 1,000 different items.
BOOTHS #1068 & 867BAY CITY FLOWER CO.Half Moon Bay, CAFamily-owned Bay City Flower Companyhas more than 100 years of growing. Weare known for producing the mostdiverse assortments of unique, highquality flowering plants in the country.Our aim is to keep our customers floraldisplays fresh,in te res t ingand colorful.
BOOTH #1026THE USA BOUQUET COMPANY Miami, FLThe USA Bouquet Company, a NorthAmerican provider of fresh floral prod-ucts, will showcase new and excitingideas for your stores. See our new line ofPremium Arrange-ments that help usbetter serve you withocca s ion -d r i venpurchases. Look forour other innovative designs when youvisit our booth in Chicago!
BOOTH #959MICKY’S MINIS FLORA EXPRESSSt. Louis, MOMicky's Minis special-izes in growing and shipping 2-inchminiature potted plants. Our plant selec-tion includes roses, violets, mums,kalanchoes, azaleas, poinsettias, assortedherbs, cactus, succulents and foliageplants. Plus we offer a great line ofseasonal and holiday accessories. Stop byour booth to see what's new!
BOOTH #957TEUFEL HOLLY FARMSPortland, OROur exceptional quality and unparalleledcustomer service allowed Teufel HollyFarms to be a leading supplier of thefinest Pacific Northwest evergreens formore than 120 years. Stop by our boothand see how our experience and expertisecan maximize your holiday sales.
BOOTH #835ARMELLINI EXPRESS LINES INC.Palm City, FL Look to us forscheduled LTLservice. Since 1945, Armellini Logistics, afamily-owned perishable logistics busi-ness, has specialized in thetransportation of flowers. We offer thebest freight service and performancehandled with complete care — concen-trating on temperature controlledshipments of perishable products acrossAmerica.
BOOTH #863BLOOMQUEST LLCEnglewood, NJBloomQuest supplies roses and sprayroses directly from Kenya to retail part-ners in the U.S. We have an exceptionaltrading relationship with Kenya andwork closely with a number of speciallyselected farms in Ecuador. This enables
us to offer ourcustomers thebest possibleflowers in theindustry.
BOOTH #838BOTTOMLEY EVER-GREENS & FARMSEnnice, NC Bottomley Evergreenswill help you meet all your liveChristmas decor needs includinggarlands, wreaths, bouquets and center-pieces. We pride ourselves on providingthe highest quality and service availableto our valuable customers. Be sure to seewhat’s new at Bottomleys.
BOOTH #847THE SUN VALLEY GROUPArcata, CAFlowers have powers!Sun Valley will present aseries of retail-readyvignettes highlighting the powerfuleffects flower have on you. Sun Valley’smission is to achieve an unwaveringdedication to quality, year-round avail-ability and unparalleled customer servicein the floral industry. Join us in creatinga world of color. See you there!
floral watch
AISLE-BY-AISLE BOOTH REVIEW
INTERNATIONALFLORICULTUREEXPOJUNE 8-10, 2015
16 / MAY 2015 / PRODUCE BUSINESS
Floral Watch is a regular feature of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, along with a high-resolution image to: Managing Editor, PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected].
About the AuthorAnna Saffer is director of new product development at dunnhumbyUSA. She leadsdunnhumbyUSA’s product innovation capability and is responsible for the developmentof sophisticated solutions that allow manufactures to think differently about their inno-vation through data and insights.
18 / MAY 2015 / PRODUCE BUSINESS
Produce Aisle PredictionsBY MS. ANNA SAFFER, DIRECTOR OF NEW PRODUCT DEVELOPMENT, DUNNHUMBYUSA
Consumers want to understand asmuch as they can about what isgoing into the products they
purchase. While this isn’t a new trend — infact, recent reports show the concern isrelatively widespread in most markets —the desire for consumers to know theorigin of their food and the process it goesthrough on the way to the store or restau-rant remains a growing interest. Data leadsus to believe that an “open door policy”with food will continue to be a relevanttopic for consumers.
With packaged goods, consumers caneasily look to nutrition and ingredient labelsto clearly and thoroughly understand whatis going into the products they buy. Forproduce it can be a little more complicatedas the products often do not come with atell-all label. Transparency is key withproduce. This practice really boils down tonot just ensuring the customers feel confi-dent that they’re purchasing responsiblyproduced food, but rather that they feel thebrand is making an effort to try and explainthe what, where and how of produce.
In dunnhumby’s annual Food TrendReport, we developed a unique method-ology — taking the best of food andculinary trends uncovered through research,online recipes, restaurant menus, industryjournals, the news, purchasing behavior, andtalking to consumers — and applied arigorous model to truly understand andpredict the big trends of 2015. We wanteda rich historical view and examined up to 5years of actual purchase data on each of thetrends identified. By understanding pastperformance and current performance, wecould better predict the future of the trend.
Our first step was to build a bank ofmore than 150 food and culinary-relatedproduct trends. The trends we looked atstretched wide — from diet specific, such asPaleo; to packaging, such as pouches; fromproducts, like leben (or Israeli-style yogurt);to product claims, such as “free range.”
Once we had a robust list of trends, wewanted to understand the factors that couldimpact them. We looked at hundreds ofvariables that were driving growth and could
predict future growth. Specifically, welooked at metrics across key driver areassuch as: Trend Acceptance, Shopper DNA,Proliferation and Digital Footprint.
All this data helped us obtain a goodview and identify the trend drivers. Bylooking at what consumers are actuallybuying, we were able to reveal changes inbehavior.
Based on our analysis, we identified thebig trends we expect to continue to stay ontop of consumers’ minds and affect theirshopping list in 2015. These trends are:Natural Sweeteners, Responsibly Produced,Fermented Foods, Small Batch Goods andReligious Standards. Overwhelmingly mostconsumers (nearly 80 percent) believed theywould engage with these specific trendsgoing forward.
One key theme that emerged wasproduce consumers are interested insupporting the little guy, or in this case localfarmers. Some consumers even told ussupporting local farmers gave them a senseof nostalgia for a simpler time when peoplewere closer to the production of the food
they consume. Many shoppers also equated‘locally grown’ with the perception of higherquality and/or fresher products.
Consumers value how their products arecultivated in advance of arriving on thegrocery shelves. In our Food Trends research,consumers shared sentiments like “It isimportant to me how my food is raised,”and “Treatment, feed, and conditions areimportant.” In addition to valuing the treat-ment of the food they’ll be consuming,shoppers want that to be translated clearlyon the product packaging. Unclear labels area prevalent frustration amongst manyconsumers; one customer articulated it as,“I would not buy any of the abovementioned products unless it also said‘organic.’ Otherwise, all those labels you arestating are meaningless.”
By purchasing sustainable grown foods,consumers felt they were doing somethingbetter not just for themselves and their fami-lies by monitoring and understanding whatthey put into the body, but they felt like thisbenefited the larger environment as well.
While price still remains important toconsumers, we have seen a willingness toup-trade for higher quality products. Oneconsumer stated it as “Price is still a factor inmy choice, but if I find these products[organic, natural, etc.] at prices that are nottotally out of line with traditional groceryprices, then I will buy.”
Consumers are placing a new, and signif-icant, value on these claims of the what,where and how produce is grown andmaking purchasing decisions to reflect thesethemes.
The most important area for consumersremains not just what’s trending, butwhether they should care about the trend.We believe by grounding innovation in thecore values of the brand, consumers canhelp ensure brands and producers arefocusing on the trends that are right for theirbrand specifically.
Consumers areplacing a new,and significant,value on theseclaims of thewhat, where andhow produce isgrown andmakingpurchasing decisions toreflect thesethemes.
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Nobody handles consumer databetter than dunnhumby, so whenit lays out a case that producers
and marketers ought to focus on corevalues, one should heed its findings. Yet oneis reminded of French statesman GeorgesClemenceau, who repeated the commonexpression that the voice of the people wasthe voice of God and added that it was thefunction of leaders to follow that voice“shrewdly.” Into that one word, much cyni-cism and skepticism was packed.
For the industry, the challenge is how toreconcile the dunnhumby insights —“Natural Sweeteners, Responsibly Produced,Fermented Foods, Small Batch Goods andReligious Standards,” etc. — with the factthat the fastest growing retailer in Americais the deep discounter Aldi. How will theindustry reconcile the idea that “produceconsumers are interested in supporting thelittle guy” with the fact that the largestretailer is Wal-Mart?
Items such as soda, processed meatproducts, and frozen dinners are among thetop items sold by supermarkets, so how arewe to reconcile that factor with theconsumer desire, as dunnhumby reports, tocare about how their food is raised, tosupport small producers, and do somethingfor the environment?
Part of the issue is that ascertainingconsumer preferences, in the absence ofprice, poses odd issues. Capitalism isdifferent than democracy. Votes in a democ-racy tell us what people want, but votes inthe marketplace are specifically designed totell us what consumers want most.
Presumably, many people would, in theabsence of price, prefer diamonds to cubiczirconias and Ferarris to Fords. When aconsumer says, “Price is still a factor in mychoice, but if I find these products[organic, natural, etc.] at prices that arenot totally out of line with traditionalgrocery prices, then I will buy,” one is notcertain what to make of it. A price that is“totally out of line” represents differentthresholds for each person.
The USDA says organic sales account forless than 5 percent of food sales — and that
COMMENTS & ANALYSIS
What Do People Really Want?BY JIM PREVOR, EDITOR-IN-CHIEF, PRODUCE BUSINESS
is by dollars, not volume, which would besignificantly less. It also includes a great dealof “accidental” organic purchases, which iswhen a retailer only stocks the organic itemon low-volume SKUs to avoid having toprocure and slot two items.
So, once again, when a consumer says, “Iwould not buy any of the above-mentionedproducts unless it also said ‘organic’ …otherwise, all those labels you are stating aremeaningless,” how common could thesesentiments possibly be?
Part of the problem is that none of theseterms are value-neutral. There is a zeitgeistto the times, and asking consumers if theyprefer “responsibly produced” is like askingif they favor helping blind old ladies crossthe street. One can’t answer negativelywithout identifying oneself as a horribleperson. Who precisely is in favor of “irre-sponsibly produced” food?
Many of these terms are so complicatedthat claiming affiliation with them is morean expression of an aesthetic preferencethan it is an explanation of what kind offood production one prefers.
Which is more responsible: a farm thathires foreign workers at higher pay thanthey could get at home, but still very little byU.S. standards; a farm that relocates toMexico and pays even less than its Americancompetitors do, but more than is commonin Mexico; or a farm that invests heavily inautomation and hires very few workers, butpays them much higher wages?
There is no possibility of a label that will
explore this issue in any meaningful way.Indeed, it is unlikely that significant numbersof consumers are inclined or able to evaluatethese issues even if websites and whatnotprovide total transparency.
In this sense, the dunnhumby reportsimply gives guidance for marketers to posi-tion themselves so consumers of a productcan feel good about being aligned with it.This is a wise reminder that consumers doconsider more than the end product.
One suspects a lot of these things onlyimpact purchase if there is a negative senti-ment in the knowledge base of theconsumer. In other words, it is hard toimagine how consumers would even know— much less that it would have muchimpact on purchasing — if a farm pays itsworkers 10 percent more. But a discoverythat a farm illegally abuses its staff and with-holds wages might lead people to boycottthe products of that firm.
Many of the words used in this studyhave little real meaning. Local, for example,is not necessarily small-scale. And there arequestions that presume consumers alreadyhave expectations for these “local” prod-ucts, which could be defined differently byeach individual: more flavorful, less expen-sive, or fresher condition.
We take the dunnhumby report, add toit feedback we get from retailers, and comeup with this: Primarily consumers base theirpurchasing decisions on the same factorsthey always have: price, quality, variety andconvenience. As the world becomes moresophisticated, people want to present a faceto their community, to their family, to them-selves, of doing the right thing and of beingon the right side. In today’s world, thatmeans being a foodie, supporting local,being pro-environment, and in favor ofgood conditions for labor.
So it behooves producers to positionthemselves this way, but the emphasis mustremain on efficient production of qualitygoods as most consumers are not preparedto pay a premium on sub-par goods tosupport this ethos — although they mightpay a premium to avoid being associatedwith an egregious wrongdoer. pb
PRODUCE BUSINESS / MAY 2015 / 19
Votes in a democ-racy tell us whatpeople want, but votes in the marketplace are specificallydesigned to tell us whatconsumers want most.
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MAY 2 - 6, 2015WAFC 94TH ANNUAL CONVENTIONConference Venue: JW Marriott Desert Springs, Palm Desert, CAConference Management: Western Association ofFood Chains (WAFC)Phone: (562) 497-1012Email: [email protected]: wafc.com
MAY 6 - 8, 2015SIAL CHINAConference Venue: Shanghai New International Expo Centre, Shanghai, ChinaConference Management: SIAL Group, Paris, FrancePhone: 33 (0)1 76 77 13 33Email: [email protected]: sialchina.com
MAY 16 - 19, 2015NATIONAL RESTAURANT ASSOCIATION SHOWConference Venue: The International FoodserviceMarketplace, McCormick Place, Chicago, ILConference Management: National RestaurantAssociation, Chicago, ILPhone: (312) 580-5410 • Fax: (312) 853-2548Email: [email protected]: restaurant.org/show
MAY 16 - 19, 2015AMERICAN FOOD FAIRConference Venue: McCormick Place, Chicago, ILConference Management: National Association ofState Departments of Agriculture, Arlington, VAPhone: (703) 934-4700 • Fax: (703) 934-4899Email: [email protected]: nasdatradeshows.org
JUNE 3 - 5, 2015THE LONDON PRODUCE SHOW AND CONFERENCEConference Venue: The Grosvenor House Hotel,London, EnglandConference Management: PRODUCE BUSINESS, Boca Raton, FL and FRESH PRODUCE CONSORTIUM, Peterborough, EnglandPhone: U.S. - (561) 994-1118UK - 44 (0) 20 3143 3222Email: [email protected]: londonproduceshow.co.uk
JUNE 8 - 10, 2015UNITED FRESH CONVENTIONConference Venue: McCormick Place ConventionCenter, Chicago, ILConference Management: United Fresh ProduceAssociation, Washington D.C.Phone: (202) 303-3420Email: [email protected]: unitedfreshshow.org
JUNE 8 - 11, 2015FOOD MARKETING INSTITUTE SHOWConference Venue: McCormick Place ,Chicago, ILConference Management: Food Marketing Institute,Arlington, VAPhone: (202) 452-8444 • Fax: (202) 429-4519Email: [email protected]: fmi.org
The relationship between New Leaf Community Marketsand its partnering farmers sets the independently oper-ated grocery chain apart from the competition, saysMaroka Kawamura, produce director and New Leafveteran of 15 years.
“Not many companies of our size are really working with farmersdirectly,” says Kawamura, who is responsible for six of New Leaf ’sseven stores scattered across 70 miles on California’s central coast. “Itmeans a huge benefit for us, enjoying direct access to quality prod-ucts without having a distributor center. It’s the defining aspect ofhow we operate, and has an impact on every department in the store,such as prepared foods. For example, the same quality gourmet cheeseavailable in the store for a customer to take home also goes into oursandwiches.”
In her position, Kawamura’s responsibilities range from approvingvendors to developing business programs and policies — but there isno centralized buying. About 95 percent of the produce sold at NewLeaf locations is organic, and each store does its own buying.
As New Leaf ’s reliance on farms has grown, so has the strength ofthe connection between each store and farmer. Each store’s producemanager works with about 15 farms in summer and eight in winter,says Kawamura, who began working for New Leaf in 2006. “It’s ourstrong differentiation from competitors in the marketplace. In each
Building relationships with farmers to expand its independent niche.
BY OSCAR KATOV
store, the produce manager has authority to buy products from thosefarms. There’s a lot more awareness by the store produce manager toknow where products are coming from — to have his finger on thepulse in terms of seasons and deliveries.”
With its emphasis on fresh organics, New Leaf maintains a disci-plined replenishment program without a distribution center. “Sometimesthat’s challenging,” says Kawamura. The stores receive product six daysa week from its principal distributors, Earl’s Organic in San Franciscoand Nor-Cal in Sacramento, and from direct farm delivery. In thesummer, there is no need for a warehouse since the peppers, cucumbers,zucchini and melons come directly from farms.
“Some farmers offer six-day schedules, while smaller ones will giveus two- and three-day schedules,” she says. “By the time we add up allour different sources, we’re getting products into the store every dayof the week.”
Another dimension to the relationship is the interest by producemanagers in the development of unique products, such as the TrumpetRoyale mushroom, which had brisk sales for $26 per pound. “We alsohave a couple of really fantastic farmers who develop products such asa dry-farmed tomato,” says Kawamura. “It’s a tomato that is not irri-gated, that’s really flavorful, with a short window of 10 weeks —something that people wait for year after year. And we also have somegreat orchards for heirloom apples and Meyer lemons.
ASCENDENT INDEPENDENTS
22 / MAY 2015 / PRODUCE BUSINESS
New Leaf Community Markets
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tent and provide grab-bags of fruit and waterat the finish line.”
When founder Scott Roseman opened thefirst New Leaf in Santa Cruz 30 years ago, heemphasized healthy food and organics. “Incontributing to community welfare anddevelopment, and involvement in environ-mental programs, New Leaf also has becomea force for good, other than just selling food,”he says.
Roseman describes a new route tomeeting rigorous standards of social and envi-ronmental responsibility, accountability andtransparency, through a nonprofit worldorganization called B Corporation. Func-tioning in 33 countries in more than 60industries, B Corporation offers certificationto businesses — New Leaf was the secondgrocery chain in the world to receive thiscertification — meeting those high stan-dards. The first B Corporation chain isPortland, OR-based New Seasons Market,which acquired New Leaf CommunityMarkets in November 2013 as a whollyowned subsidiary.
“When I learned there was a way to certifymy business as one that makes a difference inthe world, that makes the world a betterplace, I immediately jumped right on it,” hesays. “We had been operating as a B Corp for
“We also have some good strawberryvendors that are growing the Chandlervariety versus just Albions that you can geteverywhere. Bunch broccoli is another thingthat’s pretty unique that we really like in ourstores. There are farms that do really greatvariety potatoes — something beyond gettingRusset, or red, or Yukon. So, there are a lot ofreally unique varieties we have access to justby having the relationships with farms.
Every New Leaf store has a hot bar (thatchanges out multiple times a day), salad bar,bakery and full deli case. Five stores offerrotisserie chicken and two offer fresh pizza.There is also a sit-down space wherecustomers can eat lunch or take a break, saysKawamura.
Like other independent operators acrossthe country, New Leaf recognizes that addi-tional marketing goes beyond the localnewspaper. “Our focus has shifted to elec-tronic media,” says Kawamura. “We do a lotof e-blasts from our marketing department toour email lists, not just sales information butabout events that might be coming up, orcooking classes. We also use social media —such as a Facebook page, which is tailored foreach store. In the communities where ourstores are located, we support a lot of fitnessevents, such as marathons where we put up a
PRODUCE BUSINESS / MAY 2015 / 23
About 95 percent of the produce sold at New Leaf locations is organic, and each store does its own buying. Produce managers work with about 15 farms in summerand eight in winter in addition to the company’s two principal distributors (Earl’s Organic and Nor-Cal).
years, and this certification was made forcompanies like ours. When I started NewLeaf, I committed to giving 10 percent of ourprofits back to the community — because Iwanted to do that as a good business citizen,but more importantly, as a model that Ithought all businesses should do. If we’refortunate enough to be successful, we cancertainly share in that success with ourcommunity.”
New Leaf also developed a profit-sharingplan for employees, says Roseman, “whichallows them to share in whatever success wecreated together. Add that to the productwe’re offering — natural and organic foodsthat promotes health for our customers andsustainability to our planet. So becoming a BCorp was a natural fit for us.” pb
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A fter PMA announced its million dollar contribution to anew promotional effort designed to increase produceconsumption, we wrote a piece titled, “Solving The Right
Problems,” in the March issue of PRODUCE BUSINESS.Much of the piece was devoted to the question of how we
know what is the right problem to solve. For example, wepointed out something that might possibly have a great short-term impact, say a new salad bar, could, if children put togetherbad combinations, be less effective at boosting long term con-sumption than giving the children composed salads that havebeen carefully designed to be easy to digestand delicious. So the dilemma for the indus-try becomes: Is the problem getting childrenexposed to fruits and vegetables, or is theproblem making sure children eat producethat is deliciously prepared?In addressing PMA’s initiative, we were in-
terested in the question of whether thetrade’s problem is actually a lack of market-ing. Here is what we wrote:
…the Produce Marketing Associationrecently unveiled its support for a majornew marketing campaign for the industry— contributing $1 million to kick it off.The campaign is being led by the Part-nership for a Healthier America and is ba-sically a marketing campaign to promotefruit and vegetable consumption. There are many things to be said about these efforts,
but one of the more interesting questions is to assesswhether the problem holding back consumption is inad-equate marketing. Of course it is well known that Coca-Cola outspends the entire produce industry on marketing— many times over. And it is easy to focus on this fact. Infact, many in the produce industry like to focus on thisfact because it implies they are doing everything well andthe problem is beyond their control. “If the industry hadaccess to the Coca-Cola marketing budget, then con-sumption would boom.”Well, we bow before no man in our respect for the
power of proper marketing, and individual companies cancertainly differentiate themselves through marketing ef-forts. But whether the industry’s issue is really a lack ofmarketing is most uncertain. Many a peach sold is virtu-ally inedible. Children love blueberries, but the sweet-ness is irregular, and even the same brand of “easy peel”citrus peels inconsistently through the year. In other words, produce is very unpredictable. Today,
marketing an individual company’s produce under a
brand umbrella might make sense. Love Beets can be con-sistently delicious; POM juices never vary. Branded itemscan consign lower quality to a different label. But the in-dustry as a whole can’t distinguish — it markets lousyproduce along with good. It has no mechanism for ex-cluding anyone or anything. Is the trade’s problem really a lack of marketing? Or
is it inconsistent product that often disappoints the prom-ise any marketing effort would make to consumers?Put another way, you can’t put the cart before the
horse. Branding involves a promise to theconsumer, and if the brand can’t consis-tently deliver on that promise, the mar-keting will just ensure consumers getdissatisfied faster.If you are interested in a luxury vacation,
you may sign up to stay at the Four Seasons— indeed you may do so blindly, never hav-ing seen the resort, because you trust theFour Seasons brand will bring a very high-end luxury experience. Indeed, you may paya premium to stay at the hotel just becauseof the name. But it is not just the name — itis the consistent delivery, the brand promise-keeping, that justifies both the purchase andthe premium.Now if Four Seasons can’t deliver on that
promise — if sometimes you received a high-end experience and sometimes you received a poor experience— all the marketing dollars in the world would not help.We note that Bolthouse is behind a lot of these initiatives, in-
deed PMA seems to showcase Bolthouse as an example for theindustry. The thing about Bolthouse, however, is that Campbell’sSoup didn’t pay $1.5 billion in order to grow some carrots.In an interesting presentation to Wall Street, Jeff Dunn, pres-
ident of Bolthouse, made the point whereas the actual carrot cat-egory is growing 3 percent a year, the beverage category isgrowing 15 percent a year and dressings 6 percent a year. Bolt-house itself was seeing 24 percent growth in its refrigerateddressing sales and a two-year compound annual growth rate onbeverages of 15 percent. Put another way, for a company suchas Bolthouse, money spent on marketing fresh produce is a greatidea because Bolthouse sees that marketing as a halo for the salenot just of low margin fresh produce but also of fast-growingand high margin dressings and juices.This is great and we wish the people at Bolthouse all good
fortune. We admire many of the very innovative and cleverthings Bolthouse is doing — catch its website game — but, truthbe told, Bolthouse is an entirely different position than 99 percent
WHAT IS IN A BRAND?Will Marketing Boost SalesOf Inconsistent Produce?Industry Issue vs. Individual OpportunityFROM JIM PREVOR’S PERISHABLE PUNDIT 04.07.2015
of produce companies and will profit from marketing in a waythat these other companies can’t.There are many things about initiatives of these types that raise
questions. Typically they get good funding for the first year ortwo and then the funding dries up. Thenthere is the question of rollout potential… the initial campaign is to be conductedin two small cities — Fresno, California,and Hampton Roads, Virginia — plusthere will be some national social mediaefforts. It is budgeted at $5 million.So let us be optimistic and assume it
actually works, consumption goes up inthose two cities, and let us assume goodresearch is done to prove that.Those two cities have a population of
approximately 2.1 million and the U.S.population is 320 million, so a nationalrollout on this scale would cost about$762 million. Is that a feasible amount to raise under any cir-cumstances?The real question is will it work? Last time the industry con-
sidered the possibility of a national campaign, we profiled thediscussion. The industry didn’t see enough potential to fund it.This time PMA provided the start-up industry funds, but thequestion of whether it will boost consumption remains.
We, of course, hope this works. We want PMA’s investmentof $1 million to earn great returns for the industry and merit ex-pansion of the program, but we are not certain that the problemis correctly identified. Until we can promise consumers that if you
buy a peach, you will get a deliciouspeach-like experience, it is unclear thatblowing our horn to consumers will actu-ally help.After we wrote the column in PRODUCE
BUSINESS, the head produce executive forone of the top five produce retailers inAmerica sent a note:
Just had to send a word of en-couragement.
Loved your article. You are righton message. “Marketing” is an indi-vidual issue/opportunity. “Flavor” isthe real industry issue/opportunity.
Well done!When thinking about Coca-Cola’s marketing budget, it is
worth remembering every bottle of Coca-Cola, everywhere inthe world, tastes exactly the same, every single day. It is the con-sistency of that promise that makes branding possible — andmarketing profitable.So how do we, as an industry, build this prerequisite for suc-
cessful marketing investments? Perhaps that is the question.
FROM JIM PREVOR’S PERISHABLE PUNDIT 04.07.2015
26 / MAY 2015 / PRODUCE BUSINESS
A national rollout on this scale wouldcost about $762million. Is that a feasible amount
Considering the previous recipients of PRODUCE BUSI-NESS’ Retail Sustainability Award — H-E-B, Kroger,Publix, Safeway, Wakefern/Shoprite and Wegmans —the magnitude of the news set in. Patti Olenick,sustainability manager for this year’s winner, Weis
Markets — the 163-store, family chain, headquartered inSunbury, PA, with stores scattered among five eastern states,— says she was taken aback. “We were honored and elated,but did we have enough to fill the pages?” she and her exec-
utive team contemplated after receiving word of this unex-pected recognition.
If only Olenick realized the novella unfolding as shewelcomed us to the corporate headquarters of the publiclyheld — yet independently spirited retailer — to begin a tour ofthe new Weis/Selinsgrove store, then its remodeled flagshiplocated in Lewisburg, PA, followed by a visit to its bustlingcentralized distribution center in Milton, and lastly to aburgeoning “Urban Fresh”-format store near Philadelphia. The
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WEIS MARKETSClosing The Loop On Sustainability
BY MIRA SLOTT
recycle energy water community earth
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development.The store development department is
the central catalyst for all things sustain-able within the corporate structure.
quality and shelf life — while main-taining sales numbers of openrefrigerated cases, according to KevinSmall, vice president of construction and
award’s validity resonated as the corpo-rate team shared the company’s storyand vision — revealing the latest sustain-ability developments.
SUSTAINABLE TO THE PRODUCE CORE
Weis is closing the loop on sustain-ability from field to fork; from familyfarms to family tables; from unsaleablefood to food banks; to 360-degreecomposting and recycling programs; aswell as impactful energy reduction initiatives. All the while bringing itsemployees, suppliers, customers and theindustry along for the ride.
Innovative sustainable initiatives startat the heart of the produce department— ranging from a resourceful way torecycle troublesome waxed cardboardproduce boxes [see “Recycling WaxCardboard” on page 40] to pioneeringclosed-door refrigerated cases forbagged salads, explains Dan Koch, vicepresident of fresh. Piggybacking off thechain’s unique commitment to enclosedrefrigerated cases for dairy products andmeat, the choice is proving a solid returnon investment — not only to saveenergy, but also to prolong product
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HISTORY IN THE MAKING
Behind the scenes without bravado,Weis Markets has been turning thepages on sustainability since its
founding in 1912. Initially, the Weis brothers, Sigmund and
Harry, worked in their father’s general store.Eventually, they opened their first Weis PureFoods corner grocery store, embracing localfarmers, piloting promising technologies,and inventing solutions to long-standingindustry problems, explains Dan Koch, vicepresident of fresh.
Continuing the generational legacy,Robert Weis recently stepped down aschairman after 69 years at the company toserve as an adviser, as his son JonathanWeis, president and chief executive, is takingthe reins.
TAKING OWNERSHIP“Yes, we have been publicly traded on the
New York Stock Exchange since 1965, but theWeis Family lives by a philosophy of beingself-reliant and independent,” as well asdiehard stewards of the environment, says
Dennis Curtin, director of communications,and 20-year veteran at Weis.
The company owns and operates its owndairy, ice cream, and meat processingplants, as well as in-house, fresh-cutproduce program.
“While a lot of supermarket companiescontract with a third party to supply theirstores, we do it ourselves through a 1.1
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million-square-foot distribution centernear our store support center, which isabout 12 miles away in Milton, PA,” saysJoe Kleman, vice president distribution.
The East Coast chain’s radius spans fivestates; primarily Pennsylvania, with a goodpresence in Maryland, as well as New York,New Jersey, and a couple of stores in WestVirginia. pb
(L-R) Weis associate; Patti Olenick, sustainability manager; Kurt Schertle, COO; Ken Whitacre,Publisher of PRODUCE BUSINESS; Weis floral associate; David Gose, senor vice president of operations; and Weis associate.
(L-R) Kevin Small, Patti Olenick and John Lerch at the “Urban Fresh” store.
you around on price. Margins are tough.I remember when I was a little boy(maybe 14 years old) and my dad got thesame amount for a box of tomatoes asyou can today. Sometimes it feelspeople want to put the little guys out ofbusiness,” he says.
“Our season goes from the middle ofJune through October, and we’re prettydiversified in product,” says Hoover. “Weship everything to the Weis distributioncenter, which is only 26 miles away.”
The retail chain has a soft spot for itsfarmers like Hoover, whose photo andpersonal story graces Weis produce
produce supplied by approximately 100local farmers in the markets we serve.”
“If it weren’t for Weis Markets, weprobably would have quit a long timeago,” says Titus Hoover, regarding his600-acre family farm in Port Treverton,PA. “My dad started supplying freshfruits and vegetables to Weis more than50 years ago, and I’ve been working withWeis for 20 years,” he says.
“Weis has been very good to us,” hesays. “Some people are hard to dealwith. I feel Weis has more respect forthe farmer. When a lot of product iscrowding the market, Weis doesn’t beat
Other retailers typically choose to runsustainability through human resources.For Weis, it made sense to build andstreamline the sustainability platformusing sustainable material in buildingrenovations. This decision also supportsnew store openings and variousformats, explains Olenick.
“We invested more than half a billiondollars in our store base to upgrade, tobuild new stores, and to acquire somelocations,” says Small.
“Our focus in the past year was amore targeted, tactical approach to capi-talize on these significant investments inour store base, but we also want toensure we have the products peopledesire; what people want today versusfive years ago is ever-changing,” saysKoch, noting a push toward morehealthy, natural and organic offerings tocomplement its ingrained locally grownproduce programs through relation-ships with third- and fourth-generationregional farmers as well as connectionsfrom state agriculture departments.
YOUR NEIGHBOR’S FARMER“Our local produce is one of our key
touchstones,” says Koch. “In a givenyear, we’ll buy 25 million pounds of local
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Weis has been very good to us. Somepeople are hard to deal with. I feel Weis hasmore respect for the farmer. When a lot of
product is crowding the market, Weisdoesn’t beat you around on price.
TITUS HOOVER, LOCAL FARMER
“”
Titus Hoover’s family farm is one of roughly 100 local farmers Weis partners with to supply produce. The Hoover family established a relationship with the store more than 50 years ago.
and showcases the local agriculture products it purchases, such as apples,potatoes, milk and beer. "We do a bigfloral display as well," says Olenick. Weis also sponsors a culinary kitchen
with local chefs. “Next year we arelooking to bring in local hydro greens tosupplement the produce selection,since there isn’t as much local produceavailable at that time,” says Olenick. Atthe Farm Show, Weis also donated$10,000 to the Central PennsylvaniaFood Bank. Periodically, Weis honors its local
farmers and brings them together atdifferent events. “Weis invited us for agrowers’ meeting and supper,” saysHoover. “It gave us a chance to get toknow some of the other growers,buyers, and Weis family,” he says.Weis executives collaborate with like-
minded associations and organizationsto build necessary infrastructures andindustry-wide solutions. ThroughOlenick’s participation with the FMI’sSustainability Executive Committee, thecompany gladly shares sustainabilitypractices with retail competitors to reachnew plateaus as well. [See “Saying No ToLandfills.”] “Patti Olenick has been a great leader
and member of FMI's Sustainability Exec-utive Committee for the past four years,”
produces it all. From the farm to thestore in 24 hours.”“When there’s a grand opening, I
sometimes come to the store to greetcustomers,” he says. “Recently, I went toa store to shop, and I walked right by mypicture on the big sign. Customers wereso busy buying the fresh produce, no onenoticed it was me.” Customers have plenty of opportunity
to get to know the local growers. Forinstance, a descriptive sign above eachlocal apple variety at the flagship storehighlights the farmer that grew it.Customers can scan the QR codeshown on signage with their smart-phones and watch a dynamic video thatbrings them right to the farm. Farmers’ photos are also integrated
on the ever-changing reusable bagdesigns at check out. Weis alsopromotes the PA Preferred program andother state produce campaigns for itslocal markets. “We’re proud sponsors of the Penn-
sylvania Farm Show, which is the largestindoor agricultural exposition in the U.S.,held every January in Harrisburg, PA,”says Olenick. In addition to supporting local farmers
with the Pennsylvania Department ofAgriculture at the show, Weis designs asmall-scale replica of its grocery store
departments with attention-grabbingfloor signage: “Cool as a Cucumber,Titus Hoover is a pretty awesome guy. Ittakes nothing less than the coolest ofcool to grow everything he’s growing onhis Port Treverton, PA farm. From toma-toes to cucumbers, this cool cat
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Customers have an opportunity to learnabout local growers. Customers can scanthe QR code on signage to watch a videoabout the farm and its produce.
In addition to supporting local farmers with the Pennsylvania Department of Agriculture at the show, Weis designs a small-scale replica of a itsgrocery store and showcases the local agriculture products it purchases, such as apples, potatoes, milk and beer.
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says Jeanne Von Zastrow, senior directorof sustainability at FMI. “She was chairof this committee in 2013, whichincludes 18 companies working to iden-tify issues and develop tools andresources to help our industry movefaster with sustainability practices in ourindustry.” Olenick is also a key player inthe Food Waste Reduction Alliance, amulti association effort to reduce, repur-pose and recycle food waste and keep itout of landfill. “Her enthusiasm and hardwork has been an incredible asset to FMIand the pre-competitive collaborativework to help our industry — includingdeveloping the Food Waste ReductionBest Practices Toolkit and our Sustain-able Sourcing Guide,” she says.
Capitalizing on the most proven andpromising sustainability programs, Weisalso is unafraid to forge new territoryand challenge the industry’s status quo,according to John Lerch, director ofenergy and facilities and 36-year veteranwith the company.
Weis Markets brings an importantpiece to the industry’s multifacetedretail sustainability puzzle. Acknowl-edging jagged edges, Weis executivesamped up the mission several yearsago. According to Small, the companyrecognized the need to systemizeevolving sustainability programs with
PRODUCE BUSINESS / MAY 2015 / 33
clarity by using consistent marketingand colorful brand messaging within thecompany, throughout the supply chain,and directly with its customers andcommunities.
ICONIC MESSAGINGIn an effort to align its message,
explains Olenick, Weis highlights fivepillars of its sustainability program.These are represented by cleverlydesigned icons represented on store
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signage and marketing materials tosymbolically show how Weis: recyclesand reduces waste; reduces energyuse; reduces water use; impacts thecommunity; and remains earth friendly.
While the icons are similar in size,design and number of descriptive bene-fits, each element encompasses a variedrange of the company’s overall sustain-ability strategy and the paybacks. Forinstance, Weis dived deep into the energypillar, which was “the low-hanging fruit,”
The DC is at the epicenter of the chain’ssustainability loops, from recycling tologistics and managed transportation
systems. “We don’t want to put anything inthe trash,” says Joe Klemin, vice presidentdistribution. “We want to be as efficient aspossible, leverage resources, and createclosed loop systems,” he says.
In addition, as part of its corporatesustainability mandates, Weis intends toreplace 50 percent of its tractor fleet withcleaner fuel vehicles within three years,combined with its fuel savings measures.
“The biggest thing on the radar is workingon cutting-edge transportation strategies,”says Klemin, pointing to its partnership withTOPCO Associates, the member-owner co-op headquartered in Elk Grove Village, IL,for managing inbound freight. Weis islooking to elevate those efforts. TOPCO isbranching out to different categories andservices, and managed transportation is oneof those areas, according to Klemin.
“Linking up the supply chain distributionnetwork and merchandising is new to us,”says Chris Sands, business analyst for distri-
bution. “We are peeling away the layers andfully exposing all the true costs,” hecontinues. “Empty miles are a killer. Wewant to make sure we’re getting more bangfor the buck on the backhauls. We will alsohelp our vendors get better as they havebackhaul issues as well.”
“We’re just getting into local opportuni-ties to backhaul produce. We looked at
potatoes, apples and cabbage,” says Sands. Locally grown produce is channeled from
the farms through the centralized DC, whereit is inspected and monitored for quality andsafety and then distributed to Weis stores. Inthat respect, Weis avoids supplementaldistribution arrangements on a store-by-store basis with nearby farmers, according toDan Koch, vice president of fresh. pb
Weis intends to replace 50 percent of its tractor fleet with cleaner fuel vehicles within threeyears, combined with its fuel savings measures.
ONE DISTRIBUTION CENTER SERVES AS WEIS’ EPICENTER
house Gas Emissions (GHE) by 2020,and to reduce energy use by 2 percenteach year, says Olenick.
“We’re very committed to EPA’s Green-Chill program and what it represents in
“The greatest impact on carbon foot-print is refrigerant. The second would beelectricity,” he says.
Overall, the company’s goals are toreach a 20-percent reduction in Green-
by improving refrigeration efficiencies,alleviating dangerous refrigerationleakage, and generating significantsavings, according to Jeremy Hazlak,energy projects manager.
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Weis proudly promotes its five pillars ofsustainability.
Weis shares with shoppers how the store isconserving energy.
Signage throughout every store initiates acall to sustainable action.
lighting usage. “It has not impacted sales, so we will
install skylights in every new store as astandard building feature,” says Olenick.
In what may appear at first ironic, thefloral department is taking away all itsrefrigerated cases for a more European-style of merchandising, according toLucy Jason, director of floral, who joinedWeis from Wegmans — where sheworked in floral for some 23 years. “Aslong as we have the freshest product,buy from the right growers, and turnproduct frequently when it comes in thedoor, refrigeration makes no difference,”she says. “A big piece [to the transition]is taking the refrigeration out. The biggerpiece is redesigning the program andexpanding to be a full-service florist in anew footprint.”
Originally, a décor decision, Olenicksays when floral decided to pull all therefrigerated cases out, it also served toconserve energy.
WIN-WIN“For a sustainability program to work,
it must have a practical aspect to it,”
fication, and we learned a lot of meas-ures we continue to implement inremodels and new stores.” Oneexample of an energy efficiencymeasure the Weis team learned fromthe LEED store was a reduction in its
efforts to reduce refrigerant emissionsand decrease impact on the ozone layeras well as climate change,” says Olenick.To date, 12 of its stores achieved EPAGreenChill Certification Awards.
“We have a store pending LEED certi-
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Weis’ floral department is removing all its refrigerated cases for a more European-style ofmerchandising.
says Small. “Sometimes, you have tosacrifice something in the process, butwe really haven’t had to do that.”
“Refrigeration technologies weemployed provided better, more consis-tent delivery of the refrigerationenvironment for the products,” saysLerch. “The lighting conversions gener-ated less heat on the product. The oldfluorescent light waves would turn thepotatoes green. Our LED track lightingdoesn’t have those light frequencies, soproduct stays fresher longer. It also helpsus illuminate produce items in a targeted,more appealing way to maximize value,”explains Lerch at a tour of a new format“Urban Fresh” store outside of Philadel-phia, PA, which is designed with afarmers market-style décor.
Small says the aesthetic of the“Urban Fresh” store is “more urban andedgy than our new Selinsgrove loca-tion.” The format is also one of twostores piloting a program that housesclosed-door refrigerated cases forbagged salads.
“Even the doors on the bagged saladcases are a win-win for us, because it
PRODUCE BUSINESS / MAY 2015 / 37
but the hurdle has been convincingmerchandisers it won’t decrease sales.”
OPENING THE DOOR ON CLOSED DOOR CASES
Retail resistance to closed doors on
allowed us to improve the life of theproduct and the presentation,” saysSmall. “Shelf life is greatly enhancedwith the doors. Product quality is moreconsistent, and the cold chain is bettermaintained. It is slightly more money,
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Interior of Weis’ “Urban Fresh”-concept store, which provides a more farmers market-styleshopping experience.
versus those that don’t, and we see nochanges — no increase or decrease,”says Hazlak, “But no change is positivebecause of the impression, or miscon-ception, people in the industry have
barrier between the customer and aproduct, but we found this has not beenan issue,” says Hazlak.
“We examined sales in stores thathave doors on the bagged salad cases
fresh fruits and vegetables in the producedepartment, which is traditionally cele-brated for its intoxicating aromas andtactile experiences, is not surprising.
“The concern is always putting a
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Bagged salads merchandised in refrigeration units are proving successful for Weis’ “Urban Fresh” stores.
about closed door cases.”So is Weis considering putting any
other produce items behind closeddoors? Right now, it’s just the baggedsalads. “As customers adapt to doors onrefrigerated produce cases, then we’llstart to move ahead slowly, but I thinkwe are as far as we’re going to go for aperiod of time,” says Small. “We’reauthentic, and we’re sincere. We movedeliberately once an initiative has ourcommitment. We’re faithful to it, and wesee it through.”
In fact, the chain’s strategy ofmerchandising perishable products,including dairy items such as yogurt,inside closed-door, refrigerated casescan provide a fresher element.“Customers tell us they feel the productis going to be better maintained inconsistent temperature, and yes, it defi-nitely would be,” says Hazlak.
“We don’t have to defrost the cases asoften in the refrigeration system cycle,where moisture collects and the temper-ature rises,” says Lerch. “With the
PRODUCE BUSINESS / MAY 2015 / 39
enclosed system, static pressure keepsall refrigerated air more dense, so every-thing remains at the same temperature.
“Customers are more likely to feelsecure buying the product,” says Lerch,expounding that associates can explainto customers that product will stayfresher longer in the refrigerator at home
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SAYING NO TO LANDFILLS
Reducing food waste and reclaimingunsaleable food is a complex under-taking, especially when handling
produce and other highly perishable items.Ideally, the goal is to donate safe, edibleproduct to local food banks and other char-itable organizations positioned to take it, oralternatively, get it to farms.
Weis gains advantages by utilizing itscentralized distribution center to orchestraterecycling and unsaleable non-perishablefood items for donation programs, accordingto Chris Sands, business analyst for distri-bution/transportation. “We have a deep list
of folks we donate to from here. Food bankswill bring their trucks to this centralizedlocation, through an integrated store-widereclamation process,” he says.
If it’s perishable or fresh food for dona-tion, it goes out from the store. “We haverelationships with our statewide food banks,and they help us distribute through localorganizations that are in need, such aschurches, food kitchens and shelters that aregetting the food out to the communitieswhere it’s needed,” says Olenick. “We’reputting more emphasis at the store level,driven by the store manager, and all the
associates are part of the program.” To scale the program, “we are putting
together an infrastructure map anywhere itcan be managed, coordinating efforts withorganizations like the Food Waste Reduc-tion Alliance, and even working with ourcompetition to spur necessary infrastruc-ture,” says Patti Olenick, sustainabilitymanager for Weis. “Giant and Wegmans aredown the road, and we’re fighting for thesame customers, but we can all use the samefood banks and foundational underpinningsto reduce the amount of food waste going tolandfills,” she says. pb
We’re authentic and we’re sincere. We move deliberately once an initiative has our commitment. We’re faithful to it,
and we see it through.KEVIN SMALL, VICE PRESIDENT OF CONSTRUCTION AND DEVELOPMENT
“”
because the cold chain is maintainedmuch better behind the glass.”
“Consumers don’t go digging for theproduct two or three back in the opencase,” says Olenick. “They’ll grab it rightoff the front. Furthermore, it also makesshopping more comfortable for ourcustomers. They tend to linger longer ina warm aisle compared to an open-caseenvironment.”
It also doesn’t impact the quantity ofthe pack out compared to open cases. Ifanything, it would be increased, saysSmall, in terms of inventory issues andshelf space restraints in the producedepartment.
“Regarding the payback for reach-indoors on refrigerated cases — in partic-ular when talking about bagged salads —we’re expecting a 2.8 year payback, or itcan go as high as four years,” says Hazlak.“It’s still in its infancy as far as all thetesting goes. We’re going a little above
Kevin Small, vice president of construction and development
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°F, yet above freezing,” says Dr. Luo.
CALIBRATING THE ‘TEMPERA-TURE’ ON SUSTAINABILITY
“We were already practicing goodstewardship, but we wanted to create abase to measure progress in everythingwe do,” says Small.
and safety of fresh-cut products. However, substantial temperature
variations within the widely used open-refrigerated display cases used in retailstores are known to present the tech-nical challenge of complying withfederal guidance temperature standardsfor the industry. Dr. Luo says closed-doorrefrigerated cases are a way to alleviatethe problem.
"Storing packaged fresh-cut leafygreens behind clear glass doors was themost cost-effective solution to enablecompliance with Food Code, withconsistently low temperatures below 41
and beyond as far as just putting doors onthose cases. We’re also making some bigchanges on the refrigeration racks withinstalling digital compressors, and stillmonitoring stores to watch the energysavings,” says Hazlak.
“As we improve and remodel stores,other stores will be upgraded to this stan-dardization when possible,” says Small.
Olenick predicts, “It will be anindustry standard at some point.”
“What Weis Markets is doing withclosed-door refrigerated cases forbagged salads is really exciting,” saysDr. Yaguang (Sunny) Luo, research foodtechnologist for the Beltsville, MD-based Food Quality Laboratory andEnvironmental Microbial and FoodSafety Laboratory, USDA-ARS.
Dr. Luo played an integral role inongoing USDA-ARS studies on theeffects of commercial open-refrigerateddisplays under different operating condi-tions and their impact on the quality andmicrobial growth of packaged fresh-cut,leafy green products. According to Dr.Luo, maintaining proper storage temper-ature is critical for ensuring the quality
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What Weis Markets is doing with closed-door refrigerated cases for bagged salads is really exciting.
DR. YAGUANG LUO, FOOD QUALITY LABORATORY, USDA-ARS
“”
RECYCLING WAXCARDBOARD ANDOTHER WASTE
Typically wax cardboard is difficultto recycle. “There are no outlets forit,” explains Patti Olenick, sustain-
ability manager for Weis Markets. “We’reable to partner with Enviro-Log [an eco-friendly, consumer products andrecycling company headquartered inFitzgerald, GA]. The arrangement is wecollect the waxed cardboard in back ofour stores, take it to our DC and load up astorage container provided by Enviro-Log, then transport it to the company’splant in Georgia.
“The cardboard is then converted intothe Enviro-Log and sold back in ourstores. Not only is it a green product thatburns cleaner, but we are turning wasteinto product. In 2014, we recycled morethan 400 tons of waxed boxes. To add onto that, we’re avoiding disposal costs andthere is no financial exchange througheither party; it’s about Weis providing aresource to Enviro-Log.”
In 2014, Weis converted 35,261 tons ofrecycled waste in diverted landfill savingsfor the year, and it’s on pace for similarresults this year. “Our recycling rate forthe company is 47 percent,” says Olenick.The company’s goal is to increase therecycling rate by 5 percent each yeartoward zero waste. pb
In 2008, Olenick was brought in assustainability manager to help developand facilitate the strategy, establish corpo-rate goals and set baselines for growth.
“I used to work for the PennsylvaniaState Department of EnvironmentalProtection,” reveals Olenick. “Weis wasdoing a produce composting pilot in acouple of stores, and sought my help toget it working.” Which is exactly what shedid and turned the pilot into a robust, well-run food-composting program, which isnow in 64 stores. Plans are in motion fora chain-wide roll out.
“This year, our goal is to get all thePennsylvania stores in the program, andthen get the Maryland stores on board,”she says. “Many produce departmentsshy away from composting, or give it upbecause it is financially or logisticallyuntenable. Composting has to be cost-neutral compared to trash handling inorder to rationalize pursuing it,”acknowledges Olenick.
“One of the biggest costs is trans-portation. We have a local compostvendor, who has a farm with stone quar-ries,” she says. In an effort to tie in itscomposting program to its customers —keeping motion in full circle from thestores and back again — Weis startedselling bags of compost through thefloral department.
Floral also participates in the store-
PRODUCE BUSINESS / MAY 2015 / 41
wrapping plants, explains the floraldepartment’s Jason.
“Our customers were buying ourstock right out,” says Jason, adding,Weis is certified through the U.S.Compost Council standards. Whilecustomers praised the composting idea,they often commented that the bagswere too large and cumbersome. Inresponse, Weis redesigned the compostbag to be smaller, lighter and easier toput in the cart. “We’ll carry it year-roundand it won’t be a seasonal product anylonger,” says Olenick.
GREEN LEADERSOlenick says sustainability initiatives
used to be led by the voluntary efforts ofa store manager. This past year, Weiscreated a store process coordinatorposition, and part of the job descriptionis sustainability practices as well asbeing a “green leader.”
“Now I have contacts in the stores,which allows better communication anda systematic approach. Internally,consistent sustainability messaging andclear tactical direction helps employees
wide waste-management program byrecycling floral buckets and plastic filmsleeves, as well as using paper for
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Patti Olenick took Weis’ produce composting pilot in a couple of stores and turned it into arobust, well-run food-composting program, which is now in 64 stores.
recycling, food donations, and ourenergy awareness program, where weteach all of our associates to conserveenergy,” says Olenick.
The green leaders started in the fall of2014. Their first assignment was takingon the Grocery Stewardship CertificationProgram, which is a system designed bythe Manomet Center for ConservationSciences (a nonprofit organization of inter-national scientists, headquartered inPlymouth, MA) to help retailers reducetheir environmental footprint, explainsOlenick. She credits Hannaford Bros. Co.as an early adapter.
“Weis green leaders performed acomplete green inventory in their stores,reported back to us, and that informa-tion is being summarized now,” saysOlenick. They have since gone throughcorporate energy awareness training,which includes instructional signage anda video.
“Also, we’re distributing a communica-tion board for each store with an energyreport on it to monitor energy use status,”says Olenick. “The communication boardis the responsibility of the green leader.As a company, we send out informationevery month on how to perform better.”
Weis Markets' Creating Energy Aware-ness Program is highlighted in FMI'ssustainability guide for practitioners, as anexemplary case study of sustainability inaction, according to FMI's Von Zastrow."Weis Markets is truly a leader in sustain-ability practices in our field."
Continually cycling the wheels ofsustainability, Weis is committed toprotecting and improving the environ-ment in tandem with product quality,safety and shelf life. More profoundly,Weis’ efforts revitalize communities andthe quality of life for the good of thebroader public — bringing sustainabilityfull circle. pb
conduct practices correctly and alsocreates enthusiasm for the mission,which is critical for proper followthrough,” according to Olenick. She saysgreen leaders in every store representthe “grassroots” efforts being made byeach team.
“The green leaders are responsiblefor helping us educate and inform allemployees of the company’s sustain-ability initiatives. They also facilitate
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Weis Markets is truly a leader in sustainability practices in our field.
cious and Granny Smith in bulk. We had verylimited products from South America, NewZealand and South Africa. Things were trulyseasonal and it worked.
How would you characterize the overallretail environment back then?
Much simpler, and this [environment] hadits advantages. Because of limited SKUs,product turns were very good and rotation skillswere at their best. Staff knew all about theproducts and customer service was important.Local and regionalized grocery chains were thenorm. Stores were not open 24 hours and thatallowed for the refrigerated racks to be brokendown daily and hosed clean. Fresh ice was alsoa part of the presentation as well as freshlyvacuumed tables with lots of signage topromote and tell about the items.
When did things start to change, andwhat were the drivers of that change?
Things really changed in the 1990s.
AFTER 36 YEARS ON DIFFERENT ENDS OF THE FOOD SUPPLY CHAIN,
ROGER PEPPERL PROVES HIS SUSTAINABILITY
BY CAROL BAREUTHER, RD
Customers desired more choices, and thisbecame the driver for change. Variety began toflourish with a Southern Hemisphere extensionof the season. Much of the Southern Hemi-sphere product was grown for windows orcalendar needs. Flavor lacked, and prices werehigh but the season was extended. Holland andSpain gave us new sources of dry vegetablesfrom greenhouses and flew the product to theU.S. every week. Clementines came fromSpain, not California. From 2000 on, thechanges moved to convenience and variety.Variety reasoning changed from availabilityneeds to new genetics and new items.
What led you to the supply side of theindustry? What insights did you gain thatcould help retailers?
Being a Baby Boomer, my loyalty to myemployer made it hard for me to leave, but inthe end I did. The insight I learned was that notall produce products are created the same way,and a grower’s passion can truly create a better
R E T R O S P E C T I V E
Globally sourced produce, ground-breaking varietals and growers as foodindustry celebrities were not in
consumers’ consciousness when RogerPepperl started his retail career at Meijer, aGrand Rapids, MI-based supermarket chainwith more than 200 stores today. Pepperl spentnearly 21 years at Meijer as a buyer/merchan-diser before moving west and switching to thesupply side — where he is currently themarketing director for Wenatchee, WA-basedStemilt Growers, LLC.
In the past six years, Pepperl held a varietyof voluntary posts, including chairman of theProduce Marketing & Merchandising Council;member of the board of directors for the UnitedFresh Produce Association, and sat on itsCenter for Global Produce Sustainability Advi-sory Board; member of the Exhibitor AdvisoryCommittee for the Produce Marketing Associa-tion; and an executive board member of theProduce for Better Health Foundation.
Where were you 30 years ago?In 1985, I was working as a buyer/merchan-
diser in the produce office at Meijer in Lansing,MI. That’s when the chain had less than 50stores.
What was the produce department like in1985?
The SKU counts were in the 400 range —not 1,300 like today. There was no organicproduce. The only organic available was in thefood co-ops located in college communities likewhere we lived near Michigan State University.Fresh-cut items were very simple: coleslaw,carrot sticks, celery sticks, water chestnuts andbamboo shoots. I remember one of oursuppliers came up with a “Salad for Two” in apoly bag. We tried it, and it failed. We all knewit wouldn’t work. I laugh at this experience aswe know what happened with salad mixestoday. PLU numbers were very basic and theapple category was Red Delicious, Golden Deli-
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Roger Pepperl, today, at the Stemilt packing plant.
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product. We all know the saying, “you get whatyou pay for,” but I truly understand this state-ment today. If I was back at retail, I would seekout people with passion and integrity as fast asI could and buy from them alone. Price is impor-tant, but selling products people want to eat isso much more important.
What are some of the biggest innovationsyou saw during your career in the produceindustry?
For me, it’s the new genetic development ofthe varieties, flavors and colors of fruits andvegetables; the containerization of the bananaindustry; globalization of the supply chain;optical sizing in packing lines and dataresearch. The biggest renaissance is to informconsumers about “who grew my food.”
How would you describe the producedepartment today?
It’s a high-speed growth area and the mostsuccessful part of a supermarket. It’s thedepartment, more than any other, that differ-entiates the store or chain from its competitors.Produce departments also deliver profit at atime when center store continues to slow. Yet, Iwould say the average produce departmentlacks employee product knowledge andsignage is poor for an area with so many newitems.
What is the greatest lesson you learnedabout retailing from your career?
Anyone can sell an item once, but a greateating experience delivers sustainable success.Also, we need to focus 80 percent of our timeon how to sell consumers more produce and20 percent on the transaction between supplierand retailer. The best retail/supplier relation-ships are based on building sales. The real saleis to the consumer who pushes the shoppingcart or orders food online.
What do you think will drive the produceindustry in the next 10 to 20 years?
I think produce will become ubiquitous. Thechannels will be so wide and deep. Onlineshopping will become 40 percent of themarketplace. “Who grew my food” [themes] willbecome the major marketing strategy forretailers. Branded produce will become themajority of offerings with new genetics trade-marked to the grower becoming thedifferentiator. Branding is already taking off inthe produce industry today. The producedepartment will be so much better because ofthis move. Better flavors and more sustainableagriculture will come out of this evolution.
ucts that don’t deliver an excellent eating expe-rience are hurting all of us.
What advice would you give youngretailers entering the produce industry?
Shop the stores you work for and purchasethe products with your own money. If it feelsgood, you are probably doing the right things.Consumers judge our performance every day,so judge yourself like a consumer would. Fresh,friendly and fun should be the results of aproduce operation. I also would tell youngretailers they’ll never be bored. Things changeevery season, every year and every day inproduce. How much fun is that? pb
What are the challenges holding theindustry back?
Educating consumers on the wealth of newproducts. Retail signage lacks informationabout nutrition and flavor expectation. Best-in-class retailers have signage programs that tella very compelling story about the produce theysell. However, too many stores have “visualclean” policies that leave only a business cardwhite sign with the item’s name and price. Inaddition, growers must focus more on flavor.Retailers need to focus on flavor, demand for it,and pay the price for it too. Low-priced goodsoften deliver nothing more than a cheap price.We must resist this type of transaction. Prod-
PRODUCE BUSINESS / MAY 2015 / 45
(Top to Bottom): Pepperl in 1993 at a banana plantation in Costa Rica and in 1987 at a papaya operation inCosta Rica as well.
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Setting The Bar For Exceptional Organic Produce
In many ways, organic produce hasgone mainstream. A category thatpreviously had been the exclusivedomain of small cooperatives, farmersmarkets and a handful of independ-
ents can now be found in virtually every foodoutlet across the country.
Austin, TX-based Whole Foods Market,with more than 400 stores across the country,has set the standard for merchandising organicproduce with its eye-catching displays andcreative department configurations.
The company looks beyond organic,however, in order to offer more breadth ofproduct and reach a wider customer base.
“Their focus is that they have to staydifferentiated, so consumers will pay a littlemore,” says Andrew Wolf, a Boston-basedanalyst with BB&T Capital Markets. “Someof that is organic produce, and some of that ishigh-quality conventional. Their philosophy
is if they can give you a little more informa-tion about the product, then you can make arational choice based on where its grown,farming practices, and things like that. That’sincreasingly important.”
Wolf notes supply has not caught up withdemand in lots of organic produce categories,so much of organic produce “still carries ahefty premium.”
“Most consumers are looking for healthyfood that fits their budget,” he says. “WholeFoods’ idea is to get you in the store, and if youcan’t afford organic, you can buy conventional.”
The company built such a reputation forhaving high-quality offerings that customersexpect Whole Foods’ conventional produce tomeet high standards. “The assumption there isthat if there’s a conventional item at a lowerprice, it’s still a pretty good item,” says Wolf.
PRODUCE BUSINESS spoke to some of theleaders in organic produce merchandising,including some that have long specialized insuch product — New Seasons Market inPortland, OR, and PCC Natural Markets inSeattle — as well as more conventionalretailers that expanded with new banners andbolstered their own produce sets with more
organic offerings, including Publix SuperMarkets and Bristol Farms.
While Whole Foods was setting the stan-dard for organic produce merchandising witheye-popping displays, a new retail segmentemerged that looks at produce differently. Theso-called “fresh box” stores, led by SproutsFarmers Markets, focuses on sharp producepricing but does not necessarily alwaysmerchandise organic offerings. For Sprouts,local sourcing and rigid pricing are the attrib-utes it chooses to hang its hat on.
Wolf notes that Whole Foods does face athreat in Sprouts, which, according to Wolf, issourcing from producer over-runs.
“The pressure is there to buy cheaper — tobuy riper fruit, for example, because the farmerhas to get rid of it — but Whole Foods is notgoing to go too far down the quality scale,” saysWolf.
For many retailers, focusing on organicproduce remains a cornerstone of their busi-ness. For others, organic produce has becomea more important aspect of their high-qualitypositioning.
Some other examples of retailers withstrong organic produce merchandising include:
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organic marketinguexceptional retailers
An examination of retailerson the forefront of innova-tion for the category.BY MARK HAMSTRA
As the competitive landscape for organicproduce becomes increasingly crowded, Port-land, OR-based New Seasons Marketdistinguishes itself by seeking the highestquality among the organic purveyors in themarket.
“I think we’re different from a lot of peoplein that organic is one of our stakes in theground,” says Jeff Fairchild, produce merchan-dising director, New Seasons Market. “For a lotof people, that is a part of their business, butnot a central part of their business.
“What we are able to really do effectively ishighlight a signature part of our business in away that really shows off our exceptional qualityand value,” he says. “Instead of having it as justanother commodity, we treat it with a littlemore respect.”
New Seasons, which operates 15 stores inthe Portland area, typically carries about 220 to240 SKUs of organic produce, or about 75percent of the total produce.
“Being in the Northwest, about 90 percentof what we sell is in bulk and hand-stacked,”says Fairchild.
He says one of the goals at New Seasons isto merchandise organic produce “in a way thatemphasizes its specialness,” often by sharingthe story of the local growers it buys from. Indoing so, it tries to avoid getting drawn into aprice-based competition with more main-stream retailers in its market.
“The biggest challenge right now is that thefield is becoming crowded, and every largeretailer surrounding us is doing a fair amount ofpromotional work around organic,” saysFairchild. “How do you differentiate what youdo when everyone else is trying to turn organicproduce into the same sort of price game thatconventional always has lived in?”
The market conditions are squeezing outsome of the small producers who can’t provideproduct at the prices demanded by these largermainstream retailers, he says.
“It certainly happened with blueberries lastyear, and it happened with other commodities,where small grocers can’t be as efficient as largegrowers,” explains Fairchild.
As more mainstream retailers expand theirorganic assortments, New Seasons also findsitself competing with them for product, saysFairchild.
“As the industry becomes more competitive,our challenge is to continue to tell stories aboutwhat the value is in working with us versusworking with a different chain,” he says. “Wecontinue to find ways to do that.”
tion with smaller displays, and it evolved intomore of what conventional used to be formany retailers,” says John Savidan, director ofproduce merchandising for Bristol Farms andLazy Acres. He estimates about 80 to 90percent of the produce offered at Lazy Acresis organic.
“As long as availability and quality are there,we are able to stay mostly organic,” saysSavidan. “For us, anything that is locally grownand organic is by far the hottest ticket in town.”
Lazy Acres’ merchandising benefits fromthe experience of Bristol Farms, where thefocus is on high-quality products in attractivedisplays.
“We merchandise both stores very well,”says Savidan, who notes almost all of the wet-rack vegetables at Bristol Farms are noworganically produced.
“We merchandise similarly to a degree inthe newer stores, especially where we have themulti-deck wet racks,” he says.
But there are some key differences betweenorganic product merchandising at BristolFarms and Lazy Acres. While Bristol Farmsmaintains its focus on only the highest qualityproduce, Lazy Acres will opt for an organicversion of an item instead — for example, anapple that may be too small for Bristol Farmswill be perfectly acceptable at Lazy Acres.
Lazy Acres buys direct from local organicfarmers in the area, and one of its biggest part-ners is Lakeside Organic Gardens, Watsonville,CA, a family-owned farming operation that is100 percent organic. Bristol Farms also has atenured relationship with Kenter CanyonFarms, an organic produce supplier based inSun Valley, CA.
“One of the emerging trends in organicmerchandising is organic cut fruit,” explainsSavidan. Lazy Acres cuts its own organic fruitin-house.
“Organic cut fruit is hot right now, organicberries is a category growing like crazy, andorganic salads are also really hot,” says Savidan.
lNatural Grocers by Vitamin Cottage, whichis based in Lakewood, CO, sets a high bar forits product sourcing, and now has about 90stores across the country. It offers only organicproduce in its relatively small-format stores,which it is rolling out rapidly.l MOM’s Organic Market, a 12-store chainbased in Rockville, MD, also carries onlyorganic produce. The chain, which recentlyopened its first Washington, D.C., location,also focuses on sustainable business practicesand shuns plastic packaging in favor ofcompostable produce bags.l Mrs. Green’s Natural Market, is anIrvington, NY-based chain that also carries100 percent organic produce. The company,which has several locations in the New York-New Jersey area, one store in Chicago, IL andtwo in Canada, also pledges to only sourcefrom producers with sustainable businesspractices. Local sourcing is also key to Mrs.Green’s positioning.lLucky’s Market, based in Boulder, CO,which, like Sprouts Farmers Market, focuseson quality, value and local sourcing in theproduce department. The stores tout 90 percentof their products are organic or natural.Founded in 2003, the chain has beenexpanding rapidly across the country with itsfirst Florida opening set for January, accordingto reports.
Wolf of BB&T Capital Markets notesmany of these smaller stores offer less varietyand can thus focus on organic authenticity.
“There is a customer who just wants organicfood, but Whole Foods does serve a largermarket, and it has to take a broader approach,or it is not going to support its growth,” heexplains.
Whole Foods’ influence on organics, and onhealthy eating in general, has had a lastingimpact, notes Wolf. “They wanted to popu-larize this type of eating, and they succeeded,”he says.
LAZY ACRES MERCHANDISESWITH ACUMEN TO ORGANICS
At the upscale Bristol Farms chain inSouthern California, organic producemerchandising evolved from a minor subset offruits and vegetables into a majority of theoffering.
Consumer interest in healthy eating andnatural and organic product led the companyto expand with a retail banner specifically forthat purpose — Lazy Acres Market, whichnow has two locations in Long Beach andSanta Barbara, CA.
“Organics used to be a secondary itemiza-
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“Organic cut fruit ishot right now, organicberries is a categorygrowing like crazy, andorganic salads are alsoreally hot.” — John Savidan, Bristol Farms
cleanly merchandised produce sets that high-light local producers and are predominantlyorganic. PCC has a strong commitment toboth locally grown and organically producedproducts, with an emphasis on “local,”according to Joe Hardiman, produce merchan-diser for PCC Natural Markets.
“Today’s organic produce shopper demandsthe best quality, highest grade products andcompetitive prices,” says Hardiman. “Year-round selection is also demanded, which meansthat organic produce sometimes comes fromlong distances.
“But the ‘local’ mantra resonates loudly,” hesays. “There has been a significant shift tosupporting local. At PCC Natural Markets,sourcing local has always been our priority.”
The company is able to source almost all ofits produce in organic varieties because so manyproducers in the region adopted organicfarming and production.
“Ninety-five percent of produce at PCC isorganic and identified in store by green priceand origin signs,” says Hardiman, notingconventional produce signs are yellow.
“The number of organic SKUs PCC offersvaries, depending on the season,” he says.
nation’s largest cooperatively owned grocerychain, with 52,000 members, among thousandsof additional local shoppers who are notmembers.
The chain is widely known for its bountiful,
New Seasons highlights its local producepartners in the stores and in a section on itswebsite called “Meet the Locals.” Many of thesuppliers are from Oregon — such as MustardSeed Farms in St. Paul, OR, which supplies arange of items to New Seasons — or fromNorthern California and Washington.
Fairchild says New Seasons also competeswith the farmers markets in the region, whichare plentiful in the Pacific Northwest.
“Our customers are very seasonally focused,and they are aware of the seasonality inproduce, and it is reflected in the success of thefarmers markets in this neighborhood,” saysFairchild. “It’s a challenge, but it’s good for thegrowers.”
ORGANIC AND LOCAL CONVERGEAT PCC NATURAL MARKETS
The Pacific Northwest in many ways hasbeen the heart of the natural and organic foodmovement, so it should be no surprise thatsome of the nation’s top natural and organicretailers thrived there.
One of the most unique of these is Seattle-based PCC Natural Markets, which operates10 stores in the Puget Sound area. PCC is the
organic marketinguexceptional retailers
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“Ninety-five percent ofproduce at PCC isorganic and identifiedin store by green priceand origin signs. Thenumber of organicSKUs PCC offersvaries, depending onthe season. Activeitems are close to 500.”— Joe Hardiman, PCC Natural Markets
“Active items are close to 500.”PCC’s primary supplier for organic produce
includes the Organically Grown Co. (a largewholesaler of organic produce in the PacificNorthwest with Eugene and Portland, OR andKent, WA locations), Peterson Fruit Co.(wholesale produce company located inMukilteo, WA), and Pacific Coast Fruit Co. (alocal, family-owned produce distributor thatserves the Pacific Northwest retail, wholesaleand foodservice areas). The chain touts its localsuppliers with “Producer Profiles” on itswebsite, where consumers can learn aboutfarmers such as Seattle, WA-based Full Circle,which supplies PCC with salad mix, lettuces,leafy greens (kale and chard), radishes, potatoes,culinary herbs and other items.
Consumers can obtain extensive informa-tion about each of the suppliers featured on thewebsite, including their policies toward sustain-ability and other information.
The website also includes an interactivechart that allows consumers to check thegrowing seasons for organic and local produceitems throughout the year. A click on the“What’s New” tab on the website reveals thelatest produce items to hit the stores.
Hardiman says there is a trend toward morevalue-added organic produce offerings. “Valueadded, convenient grab-n-go packaging hasgrown dramatically,” he says. “Ready-to-servecello and clamshell salads are very significantsegments now, whereas bulk was alwayspreferred previously.”
PCC promotes its organic produce, alongwith its other products through its in-housemonthly Taste magazine and its bi-weeklyMarket Specials.
GREENWISE PERKS UP PUBLIX’S ORGANIC PRODUCE
Publix Super Markets has long been one ofthe few large conventional supermarket chainsthat has been able to show significant growthyear after year, so it only made sense that theLakeland, FL-based company launched aformat that gave it a foothold in the fast-growing organic and natural segment of foodretailing.
While Publix GreenWise Market(launched in 2007) only grew to three locationsin Boca Raton, Tampa and Palm BeachGardens, FL, it gave the company a learninglab for new merchandising and product,including organic produce, which it has sinceexpanded in so-called “hybrid” stores incorpo-rating elements from the GreenWise banner.
The result has put Publix at the forefront ofconventional retailers offering organic fruits
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and vegetables. Its merchandising illustrateshow mainstream organic products have becomefor the chain’s customers.
“Over the years, our merchandising oforganic produce evolved to in-line merchan-dising — meaning organic product, whileseparated by dividers, is displayed with theconventional produce items,” says Maria Brous,director of media and community relations forPublix.
“Previously, we had organic sections withinthe produce department,” she explains. “In ourcurrent format, customers can select theirorganic and conventional produce items in thesame sections.”
Brous says Publix now carries “severalhundred” SKUs of organic products in itsstores.
“Overall, the availability of organic produceincreased over the years, so you’ll see moreorganic produce items, including snacks andjuices in our traditional stores.”
Some of the company’s main suppliers oforganic product include Lamont, CA-basedCal-Organic Farms, Salinas, CA-basedOrganic Girl and Salinas, CA-based TheNunes Co.
When Publix opened its first NorthCarolina supermarket earlier this year in Char-lotte, the store included a GreenWise organicproduce section with items supplied by GlobalOrganic Specialty Source, the Sarasota, FL-based wholesaler.
Oscar Torres, merchandising specialist andnew business sales for Global Organic, says henoticed growth in the Publix organic produceoffering, and he sees the company promotingorganics regularly.
“They are good marketers, and they havebeautiful stores,” says Torres. “I think they madesome improvements, for example, with some oftheir multi-deck displays.”
He also notes that the three GreenWiselocations themselves, situated in upscale neigh-borhoods, are “gorgeous stores.”
“From a fixture and display standpoint, theyare doing a lot with their merchandising,” saysTorres.
On its website, Publix says the GreenWiseconcept — which began as a section within itstraditional stores before it became a standaloneformat — was created in part because ofconsumers’ growing demand for organic fruitsand vegetables.
“At Publix GreenWise Markets, you’ll enjoythe same Publix experience that you know andlove, but with a vast selection of organic andearth-conscious products,” the company stateson its website. pb
Consumer demand for organicstrawberries, blueberries, rasp-berries and blackberries hasincreased as the economy hasimproved, although suppliers
say increasing production of these cropsremains a challenge.
“We’re starting to see a little more increasein organic demand,” says Jim Grabowski,director of marketing at Well Pict Berries,based in Watsonville, CA. “It was going verystrong before the economy tanked, but whenthe economy tanked, the organic market prettymuch did too.
“It was probably seeing double-digitgrowth before the economy took a dive,” hesays. “Now it’s coming back, not as fast or asstrong as it was before, but it’s nice, steadygrowth.”
In the 52 weeks ending Jan. 31, retail salesof organic berries — strawberries, blueberries,raspberries, blackberries and other berries —
totaled $391.1 million, according to a Nielsenreport. That represented 9.6 percent of totalberry sales.
Cindy Jewell, vice president of marketingat California Giant Berry Farms, Watsonville,CA, cites data from the United Fresh ProduceAssociation’s 2014 FreshFacts on Retail reportindicating organic berries ranked the highest
among organic produce in terms of sales perstore in the U.S., with an average of $385weekly. That was a 14 percent increase from2013. Average pricing was at $4.04 per unit,which was a 5 percent increase from 2013.
“What this tells us is we are doing the rightthing in expanding our organic acreage eachyear to meet the increased consumer demand,”
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“We continue to seethe growth of organicberries outpace thegrowth of conventionalberries as the demandfor organic produce ingeneral continues togrow.”— Mike Orf, Hy-Vee
of Well Pict’s product offerings, he expects thecompany to increase production to accommo-date rising demand.
OUTPACING CONVENTIONALAt supermarket retailer Hy-Vee, based in
West Des Moines, IA, sales of organic berrieshave been increasing, says Mike Orf, assistantvice president of produce operations.
“We continue to see the growth of organicberries outpace the growth of conventionalberries as the demand for organic produce ingeneral continues to grow,” says Orf. “Thedemand for organic strawberries, raspberries,blackberries and blueberries is growing.”
increased demand for organic berries has beenthe expansion of the products into more classesof retail trade, he says. While these itemshistorically had been offered primarily byretailers specializing in natural and organicfoods, they are now widely available in conven-tional supermarkets, and increasingly inmembership warehouse clubs such as CostcoWholesale and Sam’s Club.
“Organics are starting to get a little bitmore exposure, so I think that’s probablyhelping fuel the push for those products,” saysGrabowski.
Grabowski says while organic raspberriescurrently only account for a very small portion
says Jewell. “It also tells us berries may not beas price sensitive to the consumer, and they arewilling to pay more for organic.”
California Giant is always on the lookoutfor opportunities to expand its organic produc-tion, she says.
“We currently have organic strawberries inboth our Southern California and NorthernCalifornia growing regions, and continuallylook for new ground to plant on each year,” shesays. “We also assess our current ground eachyear for opportunities to put some acreage intotransition.”
The grower can only transition the land itowns, she notes; leased land is rotated withother crops.
“While organic is still less than 10 percentof our total berry acreage, we see the potentialto continually increase as demand dictates,”says Jewell.
Likewise, Grabowski estimates “close to 10percent” of Well Pict’s strawberry productionis organic, with fields in the same regions as itsconventional crops — the California areas ofOxnard, Santa Maria and Watsonville. WellPict offers organic strawberries in 1- and 2-pound packages and organic raspberries in6-ounce and 12-ounce packages.
“We haven’t increased our production asmuch as we probably should, but it’s a hardprocess to turn conventional into organicland,” he says. “It’s a long and expensive propo-sition.”
As with all organic crops, the soil mustremain free of chemical contaminants for threefull years before a crop grown on the groundcan be certified as organic.
“Right now demand is strong, so we areselling as much as we produce,” saysGrabowski of Well Pict’s organic lines.
One factor that may be contributing to the
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ORGANIC BERRY PRICING GAP CLOSINGAs more and more berry farms become
certified as organic, observers say retailpricing could begin closing the gap withconventional berries.
However, growers say the increasedcosts of growing organic crops shouldcommand higher prices at their end of thesupply chain.
“When you grow organic, it’s a lot moreexpensive than conventional berries, andthe yield is a lot less, so that has to betaken into consideration,” says JimGrabowski, director of marketing at WellPict Berries, based in Watsonville, Calif.“We obviously get a premium for organicversus conventional.”
An examination of recent retail pricesreported by the USDA showed that whileorganic strawberries were more expensivethan a year ago — $4 per pound versus$3.33 in March of 2014 — the prices oforganic blueberries, raspberries and black-berries all declined.
Those strawberry prices compare withconventional prices for strawberries of $2.32this year and $2.30 a year ago.
Conventional prices for all berry typeswere relatively stable, compared withorganics.
The gap between conventional andorganic narrowed the most among black-berries, where observers say an increase inMexican production could be having animpact.
“Organic berries tend to be less stablethan conventional, and seem to vary morewith shifts in production levels,” says KylaOberman, director of marketing at NaturipeFarms, Salinas, CA, which offers organic
strawberries and blueberries year-round inaddition to seasonal programs of organicblackberries.
Renae Achondo, a buyer for Santa Cruz,CA-based Albert’s Organics, a division ofUnited Natural Foods Inc., Providence, RI,says she has seen downward pressure onorganic berry pricing.
“This season it seems organic prices arelower from the pressure of conven-tional/organic retailers playing the field,”she says.
Retailers also often use strawberries as aloss leader to drive traffic, according toCarolyn O’Donnell, communications directorfor the California Strawberry Commission,Watsonville.
“Often we see retailers will sell straw-berries for less than what they paid for themsimply to draw customers in the door,” shesays. “Our past research has shown thatpeople who put strawberries in their baskettend to spend more than someone who isnot putting strawberries in their basket.Retailers are aware of that, and will oftenuse them to draw customers in.”
Meanwhile pricing on organic imports ofblueberries has been affected by the 2013finding of the European Grapevine Moth(GVM) in some Chilean growing regions,according to Simcha Weinstein, director ofmarketing at Albert’s Organics.
“The import pricing is much stronger dueto the finding of the GVM relative to previousyears,” he says. “As the domestic marketgains more acreage, the price spreadbetween organic and conventional is notexpected to be as wide, especially when theorganic supplies begin peaking.” pb
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others keep them separate.“Some stores have large organic sections, in
which the organic berries are displayed,”explains Orf. “Other stores display the organicberries with conventional berries.”
According to a 2014 report from the Cali-fornia Strawberry Commission (CSC),Watsonville, CA, sales of organic strawberries
With its 235 stores located across eightMidwestern states, Hy-Vee typically sourcesits product from the East and West Coasts.
“We have very little access to organicstrawberries in the Midwest,” says Orf. “Werely on berries grown by suppliers in the largerberry-growing areas such as California andFlorida.”
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TACKLING ORGANIC PRODUCTION CHALLENGESIn addition to the time and expense
involved in turning land over to organicproduction, organic growers also face otherobstacles, such as pest and disease control.
Along those lines, one major projectunderway at the CSC is research into alter-natives to soil fumigation for the productionof disease-free plant stock in nurseries. Theuse of fumigation to grow organic straw-berry plant starts blew up in the media afew years ago, but Carolyn O’Donnell, theCSC Communications Director, says she is notaware of any impact on sales.
“Nurseries are required to certify they areshipping plant stock that are free of disease,and there’s not any system in place at thispoint for growing strawberry plant startswith enough certainty there’s no diseaseunless they grow them on fumigated soil,”says O’Donnell.
Earlier this year the CSC revealed itreceived more than $1 million in state andfederal grants to research alternatives togrowing strawberries without the use offumigants, including a process called anaer-obic soil disinfestation (ASD). The project isa partnership with the CSC, the USDA, theUniversity of California-Santa Cruz, and Cali-fornia Polytechnic Institute in San Luis
Obispo.ASD involves mixing a carbon source
such as rice bran or mustard seed meal intothe soil, soaking it with water, and thencovering it with plastic. This forces thedecomposing carbon to use up all theoxygen in the soil.
“It goes from aerobic to anaerobic diges-tion, and in the process, the pH changes, thesoil chemistry changes, and the microbes inthe soil change,” explains O’Donnell. “Wedon’t know exactly how it all works, but itappears to help suppress the disease in thesoil. It doesn’t outright get rid of it, but itsuppresses it enough for a season.”
Some early tests have been successful interms of producing comparable levels ofstrawberry volume and quality, but the costis still prohibitive, she says. Although theresearch is geared to benefit both organicand conventional growers, it would be amajor boon to organic farming if the processproves viable.
ASD is used in other parts of the worldwhere temperatures are higher on average,such as Italy and Israel, says O’Donnell.
“But in Central California, we’re moppingour brows if it’s 80 degrees,” she says.“That’s why it’s great for growing strawber-
Hy-Vee, considered one of the nation’sleading supermarket retailers, has a uniqueoperating model, in which individual storemanagers have an ownership stake in theirstores. That structure creates a high degree ofstore-level autonomy.
As a result, some Hy-Vee locations inte-grate their organic produce offerings, while
“This overall upwardtrend in organic blue-berry production hasbeen driven both byconsumer demand andmore retail interest indriving the sales cate-gory on organicblueberries.”— Simcha Weinstein, Albert’s Organics
ries. It’s not too hot and not too cold.”The CSC is seeking to put together what
O’Donnell described as a “recipe book” forgrowers seeking to use ASD. This wouldspecify the steps growers should take, andthe ingredients they should use, based ontheir soil chemistry and other factors.
“We are finding some practices suppressdiseases better than others, so it will reallyhave to be fine-tuned to the particular loca-tion and the soil conditions of the ranch,”she says.
Some organic growers are currently usingit, because it’s the only tool available, otherthan ground rotation, to prevent disease.
“We’re seeing growers installing it in asection of their acreage, trying differentthings to see what works,” says O’Donnell.
The CSC has also been working on inte-grated pest management, including lookingat the optimal use of bug vacuums. Thesedevices have had varying levels of effective-ness, says O’Donnell.
“Now we are really honing in on thingslike how high the hood should be over thetop of the rows, how to set the louvers at thetop of the vacuum, what pressure you shouldbe using — looking at just how to makethose bug vacuums more effective.” pb
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and 2-pound packages of conventional straw-berries increased by 50 percent when they weremerchandised on extended displays along with1-pound conventional packages.
EXPANDING IN CALIFORNIAGary Wishnatzki, the third-generation
owner of Wish Farms, a berry grower andshipper based in Plant City, FL, says hiscompany has been increasing its productionof organic berries, including its first plantingof organic crops in California last year.
“The entire organic category continues togrow,” he says. “We have seen growth indemand for organic strawberries.”
Wish Farms is one of the largest growersof organic strawberries outside of California,and is also a shipper of organic blueberriesfrom Chile.
Wishnatzki says Wish Farms expanded itsCalifornia organic strawberry acreage because ithas been challenging to meet demand in thewinter months from its Florida crop alone.
“We have been growing organic strawber-ries in Florida for about 10 years now,” hesays. “We started with 1 acre. Our acreage isabout 200 acres now. Five years ago it wasabout 100.”
Wish Farms also expanded its Californiaorganic strawberry acreage for its sophomoreseason there. Last year it had 40 acres, andthis year it has planted about 50 acres.
He also says Wish Farms has greatlyincreased its organic blueberry supply duringthe Florida season, which runs from lateMarch through May.
ORGANIC BLUEBERRIES GO GLOBAL
Simcha Weinstein, director of marketing atAlbert’s Organics, a division of Providence,
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“We have beengrowing organic straw-berries in Florida forabout 10 years now. We started with 1 acre.Our acreage is about200 acres now. Five years ago it wasabout 100.”— Gary Wishnatzki, Wish Farms
RI-based wholesaler United Natural Foods,says organic blueberry production hasincreased around the world.
“Each year we have seen continuedgrowth on organic blueberries — this beingthe trend with all growing regions: WestCoast, Pacific Northwest, East Coast, South-east, Mexico, South America, New Zealandand Holland.”
Weinstein says organic blueberry produc-tion from Argentina and Chile providesimportant volume to meet demand when thedomestic season ends.
“This overall upward trend in organicblueberry production has been driven both byconsumer demand and more retail interest indriving the sales category on organic blueber-
ries,” he says.One of the challenges in providing organic
blueberries from South America was thediscovery of the European Grapevine Moth— Lobesia botrana — in many of thegrowing zones in Chile about two years ago.As a result, the USDA now requires Chilean-grown blueberries from those zones to befumigated, which negates their organic status.
“This has had a tremendous impact on theoverall volume of South American organicblueberries entering the U.S.,” says Weinstein,who notes grower/shippers have been workinghard to develop other areas of Chile to offsetthe declines in imported organic blueberries.
Meanwhile Mexico has stepped up itsproduction of organic blackberries, according
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“We are finding somepractices suppressdiseases better thanothers, so it will reallyhave to be fine-tuned tothe particular locationand the soil conditionsof the ranch.”— Carolyn O’Donnell,
California Strawberry Commission
MORE PRODUCTIVE FARMS
About 90 percent of strawberry produc-tion in the U.S. comes out of California, andthe state is also the leader in organic straw-berry varieties, says Carolyn O’Donnell,communications director at the CaliforniaStrawberry Commission (CSC), which repre-sents both organic and conventionalgrowers.
Total strawberry acreage is projected tobe down slightly overall in 2015, to 37,438total acres, and organic acreage is alsoprojected to decline a couple of percentagepoints. The decreases in acreage reflect thefact that newer varieties of crops provideincreased yields, explains O’Donnell.
“Overall, there’s really not much differ-ence in production,” she says.
Some of the varieties bred at the Univer-sity of California-Davis, particularly theMonterey Strawberry, have done well interms of yields, says O’Donnell.
“Monterey strawberries don’t do as wellin Southern California, but up in Santa Mariaand Watsonville, we see trends towardincreasing acreage for Monterey,” she says.
Monterey strawberries account for 22.7percent of California’s total acreage plantedfor 2015 winter, spring and summer produc-tion, and 12.2 percent of the organicacreage, both up several percentage pointsover 2014 levels, according to the CSC.
All of the major varieties of strawberriesare included among the state’s organiccrops. Growers’ proprietary varietiescomprise more than half the organicacreage, at 57.9 percent for 2015, followedby the Monterey variety.
Overall, California planted 39,073 acresof strawberries in 2014, of which less than10 percent — about 3,268 acres — wereorganic. Organic acreage is projected to totalabout 3,184 in 2015. About two-thirds ofthat acreage is in the Watsonville/Salinasarea.
About 20 percent of conventional straw-berry growers are also growing organicproduct, says O’Donnell.
“We are also seeing more of theseorganic practices being implemented in alot of different areas, even if they are notorganic farms,” adds O’Donnell. pb
to Renae Achondo, a buyer for Santa Cruz,CA-based Albert’s Organics. She cited theincrease in Mexican production as one of thebiggest trends in the organic berry category. pb
“Promotional planning is key to drivingsales, but merchandising excellence and execu-tion at store level is just as important to apositive result,” she says. “The produce salesteam works closely with our industry partnersto communicate our ideas, goals, and expecta-tions to ensure the consumer gets the rightitems at the right price.”
The DeCA commissaries are known forattractive produce displays, and in fact were thewinners of last summer’s National WatermelonPromotion Board watermelon display contest,in which every commissary participated.
“Our stores’ teams, in tandem with ourproduce contractors, build exciting displays that
Summer is prime time for retailersto go the extra mile in merchan-dising fresh fruits and vegetableswith an abundance of opportuni-ties for sports tie-ins, holiday
promotions, and the advent of outdoor grillingin markets across the country.
Bridget Bennett, produce categorymanager at the Fort Lee, VA-based DefenseCommissary Agency, which operates retailgrocery commissaries for military members,retirees and their families around the world,says store-level execution is important tomaking the most of summer’s opportunitiesin the produce section.
are second to none,” says Bennett. “Thedisplays entice the customer to check it out alittle closer and often find recipe ideas, comple-mentary ingredients, and coupons for theirfresh produce. We want our customers to feelspecial, give them a reason to try somethingnew, and see the value.”
In anticipation of the upcoming seasonalopportunities, the DeCA produce categorymanagement team recently worked withretail operations and industry partners tocoordinate best practices for promotional andmerchandising strategies in the producedepartment. DeCA leadership from aroundthe world were on hand at the commissary’s
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headquarters to speak with produce expertsabout promotional planning and other issues,from ordering to end display.
“As we get busy with peak seasonsapproaching, it is important to ensure thedepartment flow engages the customer to buildthe basket,” says Bennett.
This year DeCA is focusing on increasedproduce consumption. It has a goal for everystore to reach 10 percent of store sales inproduce, and, for those already exceeding 10percent, to continue to grow.
“We continue to focus on weekly promotional items and maximizing thoseopportunities,” says Bennett. “The commis-sary is a worldwide agency, and our shoppersare a global customer, so we consistently riseto the challenge of offering local produce anda selection that compares to the commercialmarket, as well as provide those unique itemsthat our customers grew to love in other partsof the world.”
WATERMELON DISPLAY CONTESTS
One of the top produce items for summermerchandising opportunities is watermelon,which lends itself to creative retail displays andis a natural summertime draw for shoppers.
The Winter Springs, FL-based NationalWatermelon Promotion Board (NWPB) runssummer contests and promotions in July(National Watermelon Month) including aretail display contest in conjunction with theLakeland, FL-based National WatermelonAssociation. Retailers of any size can competeto win a trip to the National WatermelonConvention in February of the following year.
PRODUCE BUSINESS / MAY 2015 / 57
DeCA’s annual Healthy Lifestyle Festival. TheNWPB awards commissary gift cards to thewinners in each category, which are coordi-nated through in-store merchandisers to begiven away to the shoppers in those stores.
“We do what we do because the militaryshopper deserves to be honored every day, andour store associates work very hard to put the‘fun’ into their displays to make shopping theircommissary an experience that sets the tone,”says Bennett.
Retailers can also get a boost in their water-melon sales from appearances of their localWatermelon Queens, who represent variouswatermelon growing regions. A NationalWatermelon Queen also helps promoteconsumption of U.S. watermelon, both at homeand overseas.
“These young women are smart, they areeducated, they are unique to the producedepartment, and they have the ability to helpthe customers select the best watermelon,” saysRosado. “Usually if there is a WatermelonQueen in the store, talking about usage andselection, those customers will go home with awatermelon.”
RECIPES AND NUTRITIONThe NWPB also has been active in
promoting the use of watermelon in recipes,
The contest attracts a lot of retail participa-tion, according to Juliemar Rosado, director ofretail operations and international marketing atthe NWPB.
“Big displays do sell a lot of watermelon,especially when you make it pretty,” she says.“The retailers definitely get very creative withtheir displays.
“It really is a win-win for the retailer and theconsumer. Watermelon is the biggest item inthe produce department, so why not use it?”
While some retailers seek to wow customerswith the sheer size of their displays — a fewyears ago the largest watermelon display in theworld was in the contest — others are also veryinformational, with displays that includebrochures and recipe information.
At DeCA, watermelon displays are animportant part of summer merchandisingstrategies.
“Watermelon is fundamental to summer,”says Bennett. “Who doesn’t want watermelonin July, and who isn’t already selling it? So wecapitalize on the opportunity.
“Watermelon is a high-dollar ring, and togrow the category, we offer additional optionssuch as minis, yellow flesh, and fruit cups, cutwatermelon halves, in addition to the tradi-tional seedless and seeded.”
She says the promotion times perfectly with
“It really is a win-win for the retailer and theconsumer. Watermelon is the biggest item in theproduce department, so why not use it?”— Juliemar Rosado, Watermelon Promotion Board
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The NWPB also suggests using large,colorful bins to display watermelons in orderto attract shoppers, and to avoid storingwatermelons near bananas, as the ethylenegas given off by ripening bananas can damagethe watermelons.
Recipe demonstrations, and cross-merchandising with other produce items orwith other ingredients from the recipes can alsohelp drive watermelon sales, says Rosado.
“By doing a recipe demo and having theingredients together right there, the customerswill have the opportunity to taste somethingthat may be new or different, and if they like it,the items are right there at their fingertips tobuy,” she says.
The NWPB does not recommend freezingwatermelon as it breaks down the integrity ofthe flesh, which is 92 percent water. Water-melon can be juiced, however, and the juice canbe frozen in ice cube trays, says Rosado.
“Watermelon juice in general is now verypopular, and more research shows that it isgood for post-workout recoveries, and it’s goodfor your heart,” she says, adding watermelonalso makes a good smoothie ingredient.
FRUIT FOR GRILLINGJeff Simonian, vice president of sales and
marketing at Simonian Fruit Co. in Fowler,CA, says his company’s output peaks in the fallwith pomegranate season, but he does offersome tips for retailers to merchandise itssummer produce, which includes stone fruit aswell as grapes.
“One of the big things we always recom-mend, especially with stone fruit, is sampling,”he says. “We really feel that once they taste thefruit, it really builds sales.”
Simonian Fruit and others in the industryhave in recent seasons been promoting oppor-tunities for grilling fruit in the summer as well.
“The industry pushed that in the past fewyears, and we have as well, to the individualretailers,” says Simonian.
He suggests there might be opportunitiesfor retailers to cross-promote stone fruits withitems such as steaks and barbeque sauces tocreate a summer grilling package.
Kevin Guilfoy, area retail sales manager forIndianapolis, IN-based Indianapolis FruitCompany, which offers a wide selection ofproduce items for distribution in the Midwest,agrees produce can be an important componentof grilling promotions.
“Theme displays around the holidays andsporting events is a win-win for all depart-ments,” he says. “One-stop shopping for thebarbeque can be done outside of the meat
percent when fresh-cut watermelon is part ofthe display.
Displaying nutritional information aboutwatermelons also helps drive sales, according tothe NWPB. Watermelons are high in vitaminsA, C and B6, as well as potassium andlycopene. Displaying watermelon with nutri-tional information leads to a 74 percent increasein sales, on average, according to the NWPB.
Rosado describes watermelons as “a super-fruit and a multivitamin in a sweet, juicypackage.”
and in encouraging customers to use the wholewatermelon, including the rind, in recipes suchas watermelon-rind slaw. The Board has avariety of promotional tools available forretailers, including two-sided recipe cards forcustomers and other sales collateral.
The cards offer various uses for watermelon,including in Asian dishes such as stir-fry, and insalsas, salads and beverages.
Rosado says mixing in fresh-cut water-melon in displays also helps promote sales.According to the NWPB, sales can rise 67
department. A spot cooler of ribs and steakssurrounded by all of the corn, potatoes, peppers,etc., can help increase sales for everyone. Don’tforget to include the bakery.”Cross-merchandising produce in the meat
department has grown since both departmentssee the opportunities to move more products,says Antonia Mascari, assistant director ofmarketing at Indianapolis Fruit.“Our Garden Griller line is a success when
cross-merchandising,” she says.The company’s Garden Griller’s Grilling
and Oven Roasting Kits include a range ofitems, from an asparagus kit and a fajita mixto sweet potato chips, and a garden freshvegetable kit.“The grillers have in-kit spice blends to give
the dishes unique and bold flavors,” saysMascari. “The kits are prepped and ready forgrilling and roasting, which makes them idealfor retailers to promote and perfect forconsumers to buy as the summer grilling seasongets underway.“A real treat every year is grilled pineapple
rings with a splash of teriyaki seasoning,” sheadds. “Providing ready-to-grill vegetables withno fuss is a home run for the busy lifestylesconsumers lead.”Another tip Guilfoy has for retailers is to
make sure they are offering conditioned, softfruit for their customers to purchase.“It’s okay to have some of the greener fruit
out to sell, but conditioned, ready-to-eat softfruit will drive more sales for the total category,”he says. “Just the aroma from ripe peaches willhelp with impulse sales.”Fruit can be conditioned outside of the
cooler in a dry back room, says Guilfoy.While Simonian notes the summer holi-
days represent a terrific opportunity forpromotion of stone fruits, he says retailers typi-cally seek to promote other summer produceitems, such as watermelon and corn, duringthat time period.“We definitely think there are opportuni-
ties for retailers to promote both stone fruits
PRODUCE BUSINESS / MAY 2015 / 59
and grapes, but for whatever reason, they justdon’t,” he says.The stone fruit season begins in early
May, and the harvest peaks around theFourth of July, when California grapes arealso in season, he says.For summer merchandising of grapes,
Simonian recommends retailers offer three orfour varieties, “and of course a big, fulldisplay,” he says.Asked about the potential for promoting
grapes as something that could be frozen for
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Indianapolis Fruit’s Garden Griller’s Grilling and OvenRoasting Kits, which include an asparagus kit, afajita mix, sweet potato chips, and a garden freshvegetable kit among others, cross-merchandise well.
do in-store and on-pack promotions that willbe applied to these special baseball-themedbags,” says Nichole Towell, director ofmarketing at Duda, who notes that thecompany also plans to engage with itsfollowers on all of its social media channels —Facebook, Twitter, Instagram and Pinterest —during the promotional period.
In addition, Duda will have San FranciscoGiants-themed point-of-sale materials avail-able during a six-week period this summer.Towell says the company plans to work withNorthern California retailers to tailor programsthat fit each retailer’s individual needs.
Duda is also a 2015 sponsor of the LivingGarden at AT&T Park, where the Giantsplay. The first-of-its-kind garden showcasessustainability and wellness, and teachesconsumers where food comes from.
“Fans can visit the garden for a uniqueexperience engaging with the edible bountythe garden will produce,” says Towell.
The Living Garden is used year-round forcommunity outreach, including special chil-dren’s events where San Francisco Bay-areakids can visit to learn about farming in Cali-fornia and healthy eating.
“As a sixth-generation, family-owned and
consumption in the future, Simonian said hehas heard of the practice but has notdiscussed it with his retail partners as apromotional option.
“I imagine that [approach] has potential— maybe if there was a particular variety youenjoyed, like Muscat, or maybe if you likeCalifornia grapes, you could stock up onthem for the winter months,” he says.
BASEBALL TIE-INSSummer is also the time of year when
umpires yell, “Play ball!” — heralding a bigopportunity for promotional tie-ins, accordingto many in the industry.
At Belle Glade, FL-based Duda FarmFresh Foods, one of the world’s largest growerand processor of celery, the company islaunching a multifaceted baseball promotionalcampaign that includes both national andregional components.
New this season, three of Duda’s topselling fresh-cut celery bags will have baseball-themed packaging from May throughOctober to tie in with the Major LeagueBaseball season. The theme is “An All Amer-ican Snack.”
-operated grower of fresh fruits and vegeta-bles, Duda Farm Fresh Foods not only valuesfamily, but also finds it extremely importantto educate current and future generationsabout how their food is grown,” says Towell.
“The Garden at AT&T Park offers a one-of-a-kind experience for Giants fans to seefirst-hand how celery, radishes and citrus aregrown,” she says. “In turn, they will beequipped with a larger toolkit of knowledgefor the next time they are shopping theproduce aisle at their local Bay Area grocerystore.”
Duda, which offers fresh-cut celery andradish products under the Dandy brand, alsorecently introduced Ready-to-Eat Radishes.The extensive line includes Radish Coins andRadish MiniSticks, in addition to ReadyRadishes — washed and trimmed for imme-diate consumption.
“All three products entice the radishlover and the non-user who may not useradishes due to prep and unfamiliarity,” saysTowell.
Duda also provides coupon opportunitiesand offers additional support, such as 18promotional weeks per year that can betailored to retailers’ individual sales goals.
PRODUCE BUSINESS / MAY 2015 / 61
leverage the excitement around summer holi-days, Towell suggests: “Monitor inventoriesclosely to avoid out-of-stocks, especially duringkey promotional periods; keep displays consis-tent; use point-of-purchase signage to drawattention to the category and new items in thecategory; promote, promote, promote!” pb
Duda also leverages various social media tools,and has a network of brand ambassadorsincluding bloggers, food writers and editors,all connecting with consumers to driveproduct awareness and inspire usage ideasbefore, during and after product purchase.
When asked how produce retailers can best
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Duda is a 2015 sponsor of the Living Garden atAT&T Park, where the Giants play. The first-of-its-kind garden showcases sustainability and wellness,and teaches consumers where food comes from.
that now partner with state agriculture depart-ments complete the cycle of local by sourcingand selling a wide variety and volume of state-grown fruits and vegetables to their customers.
“Local is the buzzword today and it’s notshowing signs of slowing down,” says EricBeelitz, director of produce and floral for theGreat Atlantic & Pacific Tea Co, a Montvale,NJ-headquartered chain of 300 stores oper-ating under banners such as A&P, Pathmarkand Super Fresh.
“At the peak of the Garden State season 65to 70 percent of the produce we sell is sourcedlocally. The New Jersey Department of Agri-culture assists in a variety of ways such asproviding weekly email updates of what isbeing harvested. This includes an in-depthanalysis of what is expected moving forward —so we can plan ahead. This season, we aregetting back to more in-store programs withour farmers and using avenues such as socialmedia to let our customers know what’s justarrived fresh in-store,” he says.
Local receipts reach record highs after branding initiatives make inroads with consumers.
BY CAROL BAREUTHER
RETAILERS ASK, AG DEPARTMENTS ANSWER
The number one question asked by retailers,according to state department of agricultureprofessionals, is where they can source a varietyof fruits and vegetables locally.
“Most retailers are trying to source locallybefore looking elsewhere,” says Bryan Black,director of communications for the Austin,TX-based Texas Department of Agricultureand its GO TEXAN marketing program. “Weprovide a list of GO TEXAN member fruitand vegetable producers. In addition, we offera produce availability information piece weprovide to retailers, chefs and consumers. Wealso work closely with our local produceindustry associations and, in doing so, cangenerally find whatever product retailers need.”
The collaboration between Albertsons, a2,200-plus store chain based in Boise, ID, andthe Idaho Department of Agriculture’s IdahoPreferred Program, is a good illustration of thissourcing assistance in action.
“Idaho is known for its potatoes. However,the state’s farmers also grow apples, stone fruit,corn, cherries, watermelons, asparagus, hardsquash, pumpkins and more. The IdahoDepartment of Agriculture helps us make
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The lucrative cycle of local isincreasing retail produce rings insupermarkets nationwide. Thiscycle takes root with consumerdemand; driven by shopper’s envi-
ronmental and economic concerns as well as aperception that just-picked fruits and vegeta-bles are fresher, riper and more flavorful. Inturn, growers cultivate this market opportunityand increased production.
For example, total agricultural cash receiptstotaled a record $5.68 billion in New York in2012, reached a historic high of 8.45 billion inFlorida in 2013, and an all-time total of 9.7billion in Idaho in 2014. This rising tide ofrevenue led state departments of agriculture todevelop branded marketing programs.
Many are now well known. For example,the New Jersey Department of Agriculture’sJersey Fresh brand enjoys a 79 percent recogni-tion rate in the state, according to the JerseyFresh Branding Awareness and Tracking Study,conducted in October 2014. The many retailers
STATE DEPARTMENTS OF AGRICULTURE:Retail Partnerships To Grow Produce Sales
nSTATE BREEDING PROGRAMS OFFER SOMETHING NEWLike departments of agriculture, universities
are at the forefront of promoting states’ fruitand vegetable industries. However, it is in plantbreeding rather than marketing — in otherwords the creation of new, novel produce wellsuited for the state’s climate — where theseeducational institutions make their mark. Theresults of this cutting-edge cultivation are prod-ucts retailers can stock to support localbusinesses, stand out from the competition, andoffer customers something new. Here are threeexamples:
•Florida Peaches — High-quality, low-chilling, early-maturing peach varieties thatripen during April and May, are the result ofmore than a half-century of breeding devel-opment at the University of Florida inGainesville. These peaches, with varietynames such as UFSun, UFBest and UFOne,are grown on 1,231 acres of which approx-imately 40 percent is south of Orlando inPolk County. “This is our fifth seasonmarketing a Florida tree-ripe peach,” saysAl Finch, president of Florida ClassicGrowers, in Dundee, FL. “We have a six-week window where we are the onlydomestic peach in the market.” Finch sayshis company’s volume has grown enoughto supply mid-sized East Coast chains.Florida is estimated to produce 150,000 to200,000 20-pound carton equivalents ofpeaches this season, according to Dan Sleep,chief of the bureau of strategic develop-ment for the Florida Department ofAgriculture and Consumer Services’ Divisionof Marketing and Development, in Talla-hassee. “With careful expansion andpromotional support in select markets,Florida’s peach industry has the potential toreach 5,000 to 6,000 bearing acres valued at$20 to 30 million during the next five toseven years,” says Sleep.
•Scarlet Lettuce — New Jersey is knownfor its production of blueberries, a fruit with
one of the highest antioxidant levels thanksto its complement of phytonutrients. Sinceblueberries are seasonal, Ilya Raskin,professor of plant biology at RutgersUniversity, the state university based inNew Brunswick, chose widely available redleaf lettuce and naturally bred it to create adeep burgundy colored lettuce with two tothree times the phytonutrients of blueber-ries. Rutgers Scarlet Lettuce, named afterthe school’s mascot and color, was patentedand licensed to a university spin-offcompany specializing in enhancing thephytoactive compounds in foods, whichthen licensed it to Shamrock Seeds. PaulDevisme, sales and development managerfor the Salinas, CA-based Shamrock SeedCompany, estimates commercial productionto reach 1.2 million heads in the next threeyears. Coastline Family Farms, in Salinas,CA, is the first company to market thelettuce trademarked Nutraleaf.
•Masquerade Potato — Named for itseye-catching purple and yellow skin andtasty yellow flesh, the Masquerade is oneof the latest naturally bred commercialvarieties of potatoes developed by thebreeding program at Colorado StateUniversity’s (CSU) San Luis Valley ResearchCenter, in Center, CO. “The potato is highin specific gravity which makes it good forbaking and frying. It also contains healthfulphytonutrients like anthocyanins andcarotenoids,” says David Holm, CSUprofessor of potato breeding and physi-ology. Gunrock Management, in Center,CO, purchased the exclusive rights to growand market the Masquerade potato. It iscurrently available from October toFebruary in a 3-pound high-graphic bag.Masquerade potato salad was featured onthe media lunch menu that kicked off theColorado Department of Agriculture’s‘Choose Colorado’ tour last summer. pb
Matthew Kulinski, deputy director ofmarketing for the Atlanta, GA-based GeorgiaDepartment of Agriculture, which markets theGeorgia Grown program. Some retailers, those with well-established
buying relationships with large growers in thestate, call on departments of agriculture whenseeking to source niche items.“Variety hot peppers, cilantro, broccoli and
asparagus are some of the crops that are eithernew for us or gone by the wayside due tocompetition in other regions and are nowcoming back into production,” says MartinEubanks, senior marketing specialist for theSouth Carolina Department of Agriculture, in
delivered it to our Treasure Valley Albertsons’stores by 10 a.m. each morning. We were sosuccessful with this process that we sold everyear of corn Wissel supplied.”Retailers new to a region will look to the
state’s department of agriculture as a sourcingresource.“When Sprouts and Earth Fare moved into
Georgia, we shared contacts of growers anddistributors and hosted one-on-one meetingswith farmers to familiarize the buyers withwhat is available in the state,” explains
connections with many of these suppliers, andwith their help, we create strong partnershipswith local growers and suppliers,” explains KentFrazee, produce sales manager in Albertsons’Intermountain Division. “A great example of this happened last
summer when we collaborated with MattWissel at Wissel Farms to plant and sell topquality, local, sweet corn,” says Frazee. “Thiscorn cost a little more to produce, but you couldclearly taste the difference. Matt and his teampicked the corn in the cool of the night and
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nSTATE AG DEPARTMENTSPROMOTE CHEFS AT RETAIL
Chefs are no longer in the exclusive domain offoodservice. Several state departments of agri-culture either have a chef on staff or chefs it cancall on to host cooking demonstrations andsampling sessions in retail supermarkets.
“There is a direct correlation between demos,sampling and purchase of ingredients on-site,”says Chef Justin Timineri, certified executive chefand culinary ambassador for the Florida Depart-ment of Agriculture’s Fresh From Florida brand.Timineri has conducted numerous in-store demosat U.S. retailers such as Publix and Whole Foods aswell as at Waitrose in the UK and Sobeys inCanada.
Last summer, Safeway in Boulder, CO, one of2,200-plus stores in the Pleasanton, CA-head-quartered chain, hosted a cantaloupe cook-offwith four chefs in a full-kitchen setup in-store. TheRocky Ford Cantaloupe Association, Colorado ChefAssociation as well as the Colorado Departmentof Agriculture’s Colorado Proud program coordi-nated the event. Customers watched recipesbeing created and then sampled the resultsthroughout the event.
“Customers really enjoy chef demos as theyadd an extra level of excitement to the producedepartment,” says Kris Staaf, director of publicaffairs for Safeway’s Denver division.
Last summer, Chef Jane Deal worked with theIdaho Department of Agriculture’s Idaho Preferredprogram to host in-store cooking classes atRosauers Supermarkets, a 22-store chain basedin Spokane, WA.
On another front, 40 Georgia high-school culi-nary students will demo recipes featuring nearly20 state-grown fruits and vegetables in of theirlocal Kroger stores in April and May. This is anoffshoot of the Georgia Department of Agricul-ture awarding a grant to the Hospitality EducationFoundation of Georgia (HEFG). pb
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for the FDA&CS division of marketing anddevelopment in Tallahassee. “Many of ourretail partners have been with our programfor more than a decade, others, for instance,Rouse’s just joined a few months ago. So,although 90 percent or more of our retailparticipants are identified early on, ourmarketing team is always interested in devel-oping new contacts and seeing how theycould become part of the ‘Fresh From Florida’family of promoters worldwide.”The Pennsylvania Department of Agri-
culture’s Bureau of Market Development,based in Harrisburg, PA, offers multifacetedpromotional materials. These include “avariety of point-of-purchase (POP) materialswith the PA Preferred logo such as shelftalkers, banners and door clings. In addition,we work with retailers to promote the state’sbrand to customers in-store; at in-store activ-ities; out-of-state such as at our state farmshow; and online via the Internet and socialmedia,” explains Lela Reichart, director of thePA Preferred Program. pb
Columbia, SC, which markets the CertifiedSC Grown brand. “We give retailers lookingfor these items a harvest calendar as well asseveral names. We’ll also set up farm tours orwork with them in any other way they need tofind what they are looking for.”Questions about food safety certification are
the second most likely question to be asked byretailers. It’s the work of personnel from agri-culture departments to ensure the states’farmers are up to par.“Our department, along with the USDA,
offers a voluntary third-party Good Agricul-tural Practices/Good Handling Practices auditprogram. We do this in partnership withRutgers’ Cooperative Extension Service, whichtrains our farmers, then our team performs theaudits. More than 4,000 growers in the statehave made use of this program,” says AlMurray, assistant secretary of agriculture for theTrenton, NJ-based New Jersey Department ofAgriculture, which started its Jersey Freshbranding program 31 years ago.The third question most often asked by
nCROSS-POLLINATION FOR RETAILERSHere are five examples of how state
departments of agriculture and retailerssuccessfully partner:
Ad Incentives: The FDA&CS’s Fresh FromFlorida program offers ad incentives to retailerswho feature the state’s fruits and vegetablesas well as brand logo in weekly store circulars.This ad incentive program can substantiallygrow retail sales of a particular produce item.For example, total Florida blueberry cashreceipts rose from $11.9 million in 2000 to$76.5 million in 2013. Retailers produced morethan 300,000 store ads last season and theFDA&CS goal is 400,000 this year.
“In peak season I usually have eight FreshFrom Florida fruits and vegetables inside andone to two on the front page of our weeklycircular,” says Derek Christian, director ofperishable operations for Hitchcock’s Super-markets, a 10-store chain based in Alachua, FL.“Twice a season I do an entire Fresh FromFlorida ad overlay on the circular’s front page.In this we put the farmer’s name and townnext to the item as well as the Fresh FromFlorida logo. The ad program is a win-winprogram for us and our farmers.”
Signage & POS: Hitchcock’s Marketsreceived development cost funding from theFDA&CS to create a chain-wide POP displaycampaign. Ten POP signs hang from the ceilingin the chain’s produce departments and tell thestory of local Florida farmers. Additional
signage is attached to floor display bins andstore shelf clip-on signs.
TV And Radio: Colorado Proud, theBroomfield, CO-based marketing program ofthe Colorado Department of Agriculture,completed a successful television advertisingcampaign on the Denver NBC affiliate Channel9-KUSA. Similarly, Safeway also hosted a seriesof television commercials featuring localgrowers and local employees.
“The TV spots highlight Colorado producefrom the fields and farms to our stores. We alsofeature Colorado Proud on our print advertisingthroughout the growing season,” says KrisStaaf, director of public affairs for Safeway’sDenver division.
Social Media: The Buy CaliforniaMarketing Agreement, in Sacramento, CA,which manages the California Grown brand,and Wal-Mart Supercenters and NeighborhoodMarkets in California worked together last yearto support a food bank donation programspearheaded by the California State Board ofFood and Agriculture and California Associationof Food Banks. More than 100 Californiagrowers, representing more than 50 fruits andvegetables, participated in this program thatwas successful in getting 100 million poundsof surplus foods donated to food banks acrossthe state. CA Grown backed the campaign byusing social media to get an additional 1million pounds of produce donated. They did
retailers to state departments of agricultureconcerns distribution. “We’ve worked with the Food Industry
Alliance of New York to create aggregationpoints for distribution of fresh produce to anetwork of stores,” explains Richard Ball,commissioner of the New York Department ofAgriculture and Markets, in Albany, NY.Representatives of independent stores as wellas supermarket chains, wholesalers, co-opera-tives, manufacturers and suppliers govern theAlliance.
MARKETING TOOLS BUILD RETAIL SALES Departments of agriculture offer
manpower and marketing tools to assistretailers in promoting state-grown produce. The Florida Department of Agriculture
and Consumer Services (FDA&CS) has‘Theater of Operations’ teams deployed tomore than 50 retail and distribution partnersbeginning each fiscal year,” says Dan Sleep,chief of the bureau of strategic development
so by asking followers to post a photo of them-selves standing next to CA Grown-signedproduce on Facebook, Twitter or Instagramwith the hashtag #CAGrown. Each photoproduced a 1-pound produce donation by a CAGrown member.
“Wal-Mart joined with us by letting theircustomers know about this promotion viasignage in-store. After all, where is a betterplace than in the supermarket produce depart-ment for someone to take a picture ofthemselves with CA Grown produce,” says NickMatteis, executive director of the Buy CaliforniaMarketing Agreement.
Promotional Tours: Colorado Proudhosted a 27-day, 11-city, 17-stop promotionaltour using its iconic Colorado Proud vehicle lastAugust. Destination markets on the tour routematched up with local growers. In addition,Safeway stores were in nearly every marketthe tour stopped hence the retailers’ partner-ship with the promotion.
"Safeway displayed large banners on thefront of the store to let customers know whenthe tour was scheduled. Many stores gotcreative and built unique displays. One storebrought a 1950s pickup truck into the lobbyand loaded it with Sakata Farms’ sweet corn.Overall, working with Colorado Proud is incred-ibly successful for us and we’ve seen thatsuccess equate to increased sales across theboard,” says Staaf. pb
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If there’s one trend growers really capital-ized on in recent years, it’s theever-increasing demand for localproduct and the desire by retailers tooffer consumers product from closer to
their homes.That’s especially true in the South, where
vegetables from southeastern states (south ofOhio) are suddenly plentiful and in highdemand as more consumers eat at home andare looking for local vegetables on their plate.
“A large number of people are interestedin getting fruits and vegetables closer to theirhome, so offering products from your regionis a distinct advantage over those coming infrom the West Coast,” says Charles Hall,executive director of the Georgia Fruit and
Southern VeggiesGain Traction
A look at why commodities down South achieve popularity.BY KEITH LORIA Vegetable Growers Association, based in
LaGrange, GA. “Here in Georgia, broccoli isfairly new and kale is coming along.”
Georgia, Arkansas, Louisiana, Mississippi,Tennessee, Alabama, North Carolina, SouthCarolina, Florida, Kentucky, West Virginiaand Virginia are all southern states takingadvantage of the local movement, andretailers are beefing up its product offerings.
Julie McPeake, chief communicationsofficer with the Georgia Department ofAgriculture, based in Atlanta, GA, says itsGeorgia Grown marketing program strives toassist growers and others involved in Georgiaagriculture to find viable marketing opportu-nities for their products. This is carried outthrough its Feed My School initiative, the
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Executive Chef program, Farmers MarketShowcases, and much more.
Zinnia Alvarez, food safety administratorfor Herndon Farms, operating in Lyons, GA,says the farm produces 500 acres of Vidaliasweet onions, 550 acres of sweet corn and 520acres of leafy green vegetables (collards,mustard, turnips and kale).
“People want to buy food from a familybusiness that’s local, something they know. Ithink that attracts people to the Georgianame,” she says. “You can drive by a field andknow that’s the food you are going to eat.That’s big in today’s age. You don’t knowwhere this other stuff is grown or how.”
WEATHER ISSUESA big factor affecting growing vegetables
in the South is the heat and rain. Growinggreens, like any vegetable, can be tricky. Youneed to select the best varieties, have adequateirrigation, and monitor your crops closely to
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spiration in vegetable plants. Such conditionscan be disastrous.”
Many farmers in the South utilize avariety of irrigation methods to supplementwater availability to plants during suchperiods.
Greg Cardamone, general manager, L&MCompanies, Inc., headquartered in Raleigh,NC, has farms that grow bell peppers,cucumbers, cabbage, yellow squash, zucchini,eggplant, chili peppers and melons eachspring, plus broccoli and greens in the fall.
be successful.“Every vegetable crop needs a certain
amount of heat for a certain number of days in order to be productive. The requiredamount of heat (usually measured in degrees) can vary from crop to crop,” saysMcPeake. “In some cases, extended periodsof extreme heat can leave some vegetablecrops unproductive, as is the case with toma-toes. However, in the South, periods of highheat and below average rainfall producedrought conditions which lead to rapid tran-
nFINDING NEW VARIETIES
Southern growers made an increasedeffort to find economical alternatives to theproduce from the West Coast of the U.S., suchas broccoli, cauliflower and lettuce.
A recent report by the CropLife Foundation,a Washington, D.C.-based research and stew-ardship arm of CropLife America, revealed thatseven southeastern states (Alabama, Georgia,Mississippi, North Carolina, South Carolina,Tennessee and Virginia), are responsible for121,000 acres of squash, pepper, cucumber,cantaloupe, watermelon, cabbage and tomatowith an annual production of 2.5 billionpounds and value to growers of $700 million.This production accounts for nearly 25 percentof the total U.S. fresh market production ofthese crops.
Tim Coolong, associate professor, vegetableproduction, at the University of Georgia’sdepartment of horticulture (Tifton campus),notes that for a number of years, distributorsand buyers have been looking at East Coastproduction alternatives for many crops prima-rily produced on the West Coast due totransportation costs. Additionally, there havebeen some recent discussions about the watersituation in California, though it is too early totell exactly how this will impact the market.
“Nonetheless, while these opportunitiesexist, in order to capitalize on them, we mustbe able to tackle numerous production issuesthat can limit growers in the southeast U.S.,”
he says. “While there are different disease andinsect pressures here, as a horticulturist I havebeen focusing on variety selection andplanting dates for some crops that tradition-ally haven’t been grown here. We have solittle information about suitable varieties fordifferent planting slots for some crops, such aslettuce, that there is a lot of work to be done.”
Coolong says that improved disease resist-ance is always important in our climate —particularly for fall-grown crops.
“We are constantly trialing new varieties.One thing of particular interest is that severalseed companies have really been focusing onimproving quality through enhanced nutri-tional attributes, flavor and appearance,” hesays. “The consuming public is much moreknowledgeable regarding the diversity of fruitsand vegetables that are available to them. Theincrease in cooking shows on television meansthat consumers all across the U.S. may nowwant to incorporate a huge array of vegeta-bles into their diet, that previously may haveonly been available in specialty markets inurban areas are now being sought out in allcorners of the country.”
Coolong’s department has been fortunateto work with several seed companies to eval-uate new germplasm, particularly in thecucurbit vegetables, at the pre-commercialstages.
“Although I cannot elaborate too much on
what we’re doing, it does allow us asresearchers and extension faculty to see hownew introductions might perform prior tohitting the market,” he says.
J. Powell Smith, PhD, horticulture programteam leader at Clemson University’s LexingtonCounty branch, based in Lexington, SC, super-vises county agents who work with growers inthis region. He says another crop that’s risingin the area is kale.
“There has been a lot of interesting thingshappening with kale, and a lot of farms arenow producing different types of kale,” hesays. “We’re also looking to improve the nutri-tional values of food, so there’s a lot of interestin growing here.”
Surprisingly, the hot, sandy soil isn’t thebest ground for kale, says Smith, who is alsothe extension associate for small fruits andvegetable crops at Clemson University’sLexington County branch. While kale actuallygrows better in different parts of the country,southern rain and weather allow for about 800acres of the green leafy vegetable to begrown each year and what’s produced is astasty as anything else out there.
The university developed notable varietiesof vegetables through the years, but becauseof budget costs, it’s been more than a decadesince it has invested in finding more. That’swhy Smith says it’s up to the farmers andprivate industry in the area to do their part.pb
“People want to buy food from a family businessthat’s local, something they know. I think thatattracts people to the Georgia name.”— Zinnia Alvarez, Herndon Farms
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mean within their state or even from adjacentstates,” he says. “Even though most of thegrowers I work with ship on the wholesalemarket, one of the largest markets in theeastern U.S. just happens to be in Atlanta, sowe have a number of growers who, while theyare shipping long distances, also participatein the ‘buy local’ movement.”
MARKETING FOR RETAILVictor Savanello, director of produce and
floral for Allegiance Retail Services, LLC,headquartered in Iselin, NJ, says a lot ofsouthern vegetables become promotableduring this time of year because of the depre-ciated markets due to the proximity andreduced freight rates.
“A lot of retailers prefer the domesticoption versus the Mexican counterpart, justbased on consumer preferences,” he says.“How we merchandise these items is reallydictated by their markets and the retails thatresult from them.”
Brian Rayfield, vice president of businessdevelopment for Loxahatchee, FL-based J&JProduce, says the company is pursuing longershelf life green bell peppers with a sweeterless bitter flavor for its retail clientele.
Consolidation, value-added packaging,private labeling, national distribution, year-round contractual supply availabilty areservices and items that J&J Produce’s retailclientele find appealing.
THE FINAL WORDAt the University of Georgia, while it
“As the weather heats up, and we finish[harvesting] our Florida farms, most of ourEast Coast customers will receive productfrom Georgia. Then as the summer heats up,our production spreads north and transitionsfanning out into a wide variety of the localgrown seasons,” he says. “It’s like the jumpingoff point for lots of local programs. In Moul-trie, GA, we grow a wide variety of items —peppers, chili peppers, cucumbers, eggplant,squash, cabbage, greens, broccoli, melons,sweet potatoes — and you never know whatwe could add in to try the next season.”
Tim Coolong, associate professor, vegetableproduction, at the University of Georgia’sdepartment of horticulture (Tifton campus)notes that although the heat down south canbe extreme, his research team found thatperhaps the biggest impact is the tremendousvariability in temperatures that may not befound in other large growing areas.
“Highs can easily go from the 80s in thespring to near freezing and back up again,” hesays. “That variability can stress plants. Whenyou think about the relatively stable temper-atures in which some crops are typicallygrown, it can be a challenge trying to ensurethey are successful here.”
APPEALING TO CONSUMERSCoolong feels that consumers increasingly
want to know where their food comes fromand want to support more local production.
“While local to some individuals canmean their county and shopping at the localfarmers market, ‘local’ to others may simply
trials many varieties of a wide range of vegetables, nearly all are developed byprivate industry.
“We are simply looking to evaluate what is
PRODUCE BUSINESS / MAY 2015 / 69
mendation on a vegetable variety is nuanced.Yield is obviously very important, but only apart of the total package. Because quality andappearance are so very important in fruitsand vegetables, growers will often choose alower yielding variety that has improvedquality characteristics.”
There was a time when you could onlycount on flavorful vegetables from theSouthwest, but thanks to savvy growers and new technology, produce from south-eastern states is now plentiful and in highdemand. pb
available to growers in a non-biased way andprovide them with scientifically based infor-mation that they can use to make informeddecisions,” says Coolong. “Making a recom-
“Making a recommen-dation on a vegetablevariety is nuanced.Yield is obviously veryimportant, but only apart of the totalpackage.” — Tim Coolong, University of Georgia
Ageneration ago, the retail citrus season more closelyfollowed the rhythms of U.S. agriculture. Oranges andgrapefruits were in short supply by spring and Clemen-tines were enjoyed mainly in December. Today’s producesection couldn’t be more different, filled with citrus year-
round thanks to the continuing expansion of citrus exports from SouthAfrica and South America.
LEADING THE WAY IN SUMMER CITRUSBefore the year 2000, Australia was the sole source of summer citrus,
with shipments totaling approximately 20,000 metric tons (MT). BruceMcEvoy, director of global affairs for Seald Sweet in Vero Beach, FL,told an audience at the recent CGA Citrus Summit that SouthernHemisphere imports have grown dramatically since that time to morethan 200,000 metric tons (MT) in 2014, with South America andSouth Africa as major sources and Australia as a minor one.
According to the Chilean Fresh Fruit Association (CFFA), Chilesupplies the highest percentage of Southern Hemisphere imports.“Chile has been shipping Clementines and Mandarins to the U.S. since2004 and oranges since 2009,” says Karen Brux, North Americamanaging director for the CFFA in San Carlos, CA. “Consumers wantto eat citrus year-round so Chilean loadings to the U.S. have steadilyrisen due to an increase in both demand and supply of Mandarins andNavels. In the past two years, however, Clementine imports dropped
SOUTHERN HEMISPHERE
CITRUSas a result of a strong drought in the north of Chile.”
Peru and, most recently, Uruguay are newer entrants to the market.“Uruguay citrus first arrived in the U.S. in late 2013 after a decade ofefforts by government officials and Seald Sweet,” says Marta Bentancur,spokesperson for Union of Fruit Growers and Exporters of Uruguay(UPEFRUY) in Montevideo, Uruguay. The country exportsMandarins, Satsumas, Clementines, White Murcotts and Navels, “andwe are continuing to test new varieties.”
The growing appetite for summer citrus led to a marketplace thatadjusts to ups and downs in crop size. Luke Sears, founder and presi-dent of LGS Sales in Bronx, NY, expects Peruvian and South AfricanClementines will fill in the gap left by the smaller Chilean crop andsales for Chilean Murcotts will continue to go up.
According to the Western Cape Citrus Producers Forum(WCCPF), a consortium of 200-plus approved citrus growers/exportersin South Africa, South Africa is second to Chile in exports to the U.S.Only 3 percent of South African citrus exports are sent to the U.S. —largely because a relatively small number of growers meet the rigorousstandards required for export to the U.S. The USDA Foreign Agricul-tural Service’s (FAS) 2014 South Africa Citrus Annual Report predictsSouth African citrus exports to the U.S. will surpass 50,000 MT in the2014/15 marketing year (MY).
“Our fruit basket consists of 80 percent oranges, mainly Navels andthe balance Easy Peelers, with a small percentage of Star Ruby Grape-
PHOTO COURTESY OF CHILEAN FRESH FRUIT ASSOCIATION
70 / MAY 2015 / PRODUCE BUSINESS
Ensuring year-round enjoyment of North
America’s favorite fruits.
BY MINDY HERMANN, RD
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optimal condition.” Efforts are being made to shorten shipping.
This year, UPEFRUY is shipping directlyfrom Montevideo to Philadelphia duringcertain periods in the season to deliver higherquality products faster. Chile follows strictphytosanitary conditions, allowing its citrus toavoid cold sterilization treatments and to beshipped by sea for fewer days at an optimaltemperature that preserves quality. “Throughout the supply chain, Chilean
fruit is managed to provide the best eatingexperience for the end consumer. Growerstake the best care to produce and harvest thefruit. The fruit is picked at the perfect stageof maturity, and exporters take special care inpacking and post-harvest management toensure quality is maintained and any losses areminimized,” says Karen Brux of CFFA. “Thereopening of the Panama Canal is going tomake a difference, as transit time will befurther reduced. It will also impact shippingcosts, although one has to consider the cost ofusing the canal.”Once the produce arrives in North
TRANSPORTATION AND PRODUCT SAFETY South African summer citrus travels to
North America under a cold sterilizationprocess in refrigerated vessels, eliminating theneed for chemical fumigation upon arrival inthe United States. However, the process takesmore than three weeks. Last year, the USDA’sAnimal and Plant Health Inspection Service(APHIS) agreed to a pilot project with thePort of Houston to decrease the cold treatmentperiod for South African citrus from 24 to 22days. The pilot project’s success means SouthAfrican citrus can reach Midwestern andSouthwestern markets in fewer days and havea longer shelf life. Additionally, the processcould positively affect price if shorter coldstorage reduces product loss during transit.The transit time from parts of South
America is similar to that from South Africa.San Miguel’s Beltrán notes, “almost all ourfruit requires transit times greater than threeweeks on top of the one week of time fromharvest to port. Thus, we take all the necessarymeasures for the fruit to reach the U.S. in
fruit,” says Suhanra Conradie, chief executiveof the South African-based Western CapeCitrus Producers Forum (WCCPF).“Midknights have a small window if summerNavels are finished and U.S. production is notavailable.”
SUMMER CITRUS VARIES FROM MONTH TO MONTHSummer citrus generally is available from
May through October, although some SouthAmerican citrus arrives in the late winter andearly spring. “Our Southern Hemisphere season begins
in February with tangerines and is followed bylemons and oranges in March and April,” saysMacarena Beltrán, a spokesperson for lemonproducer San Miguel, with headquarters inBuenos Aires, Argentina, and offices inUruguay and South Africa. Newcomer Uruguay starts exporting in
March, depending on variety, and continuesuntil September, according to UPEFRUY’sBentancur. Currently, exports includeMandarins, Satsumas, Clementines, WhiteMurcotts, and oranges. UPEFRUY estimates2015 shipments of around 15,000 tons.Markets eagerly anticipate the return of
Southern Hemisphere citrus. “We are excitedby the word from our suppliers that this year’ssummer citrus will be arriving two weeksearlier than last year,” says Melvin Contreras,produce director at DeCicco Family Marketsin Brewster, NY.
72 / MAY 2015 / PRODUCE BUSINESS
“Our Southern Hemisphere season begins inFebruary with tangerines and is followed bylemons and oranges in March and April.”— Macarena Beltrán, San Miguel
America, responsibility shifts. “Stores mustdo their part to ensure freshness,” says ChrisLinskey, senior vice president of marketing ofHaggen Markets Southwest in Irvine, CA.“Our transit time is 48 hours from dock tostore, and we turn around produce withinseven days.”
PRODUCE BUSINESS / MAY 2015 / 73
Dan Donovan, spokesperson for Giant Eaglein Pittsburgh, PA.
TAKING ACTION TO MARKETSOUTHERN HEMISPHERE CITRUSCFFA supports promotional partnerships
that include store displays, ads, and socialmedia. “With larger volumes of Chileancitrus arriving from August onward, retailpromotions focus on the August/September/October timeframe and include back-to-school and fall themes. Promotions vary withthe retailer. In the Midwest, we’re workingwith a 1,300-plus store chain on a branded,two-week Navel ad. The retailer has morethan 420,000 Facebook likes, and will beposting some fun facts from our new e-newsletter. On the West Coast, we’reproviding nutrition messaging to a group ofstores targeting low income families.” CFFAalso plans to expand its joint promotion part-nership with Tajin, a spicy seasoning for fruit,in Hispanic retailers.“We can provide retailers with tools to draw
their shoppers’ attention to Chilean citrus,” saysBrux. “Whether it’s usage ideas to post on theirFacebook page, shopper giveaways, short videosfrom Chilean orchards, partner demos, salesincentive programs for produce managers, orother programs, we work with individualretailers to design programs that are going towork for them. It’s all about finding the effec-tive tools to drive sales.”Brux calls out Clementines as a marketing
success story. “Who hasn’t seen an ad for easypeelers? The strong marketing force behindthis product created great demand. Retailersbuild large displays throughout the year andMcDonald’s carried them in their HappyMeals. The demand for these, especiallyamong kids, is amazing!”The WCCPF supports grocers with
recipes, advertising, in-store tastings, theKing Citrus mascot and a kid-friendly lion. “While South African products are avail-
able in the eastern U.S. and widely availablein the Midwest and West, our shipments tothe Port of Houston open additional expan-sion opportunities to grow our presence in theU.S.,” says Conradie. pb
MEETING CONSUMER EXPECTATIONS“California created the standards for
Clementines and that is the standard we adhereto — seedless, sweet, and easy to peel,” notesMacarena Beltrán of San Miguel. “Thanks toSouthern Hemisphere citrus, customers nowcan enjoy Clementines year-round.” “We send only top quality citrus to the
U.S.,” says Bentancur from UPEFRUY. “Ourfruit stands out in color and taste, two veryimportant attributes for the consumer. Addi-tionally, Uruguayan farmers are planting newvarieties that are highly appealing.” Retailers are pleased with Southern Hemi-
sphere citrus. At Haggen, almost everysummer citrus variety matches its domesticcounterpart and tracks similarly on popularityand sales, says Linskey. Contreras at DeCicco’sis particularly pleased with South AfricanNavel oranges, which are extremely popular instores frequented by shoppers from Africa. “We bring in Southern Hemisphere citrus
to provide our customers with the best selec-tion possible until domestic fruit that meetsour quality standards becomes available,” says
At Haggen, almost every summer citrus varietymatches its domestic counterpart and trackssimilarly on popularity and sales.
nHOT SALES CONTINUE DESPITE COOLCountry of origin labeling (COOL) doesn’t
appear to impact sales. “Price is the domi-nant factor that impacts consumer choice.Country of origin is a lower priority,” saysBarbara Ruhs, a registered dietitian withNeighborhood Nutrition LLC in Phoenix, AZ.“Customers have no idea that citrus in themiddle of July comes from South America orthe Southern Hemisphere. Some customerswill react to country of origin information ina negative manner, but I believe they are theminority, especially in the summer whencompetition for locally grown or domesticproduce is not as significant.”
“Country of origin labeling does not affectshopper purchases,” says Chris Linskey, seniorvice president of marketing of HaggenMarkets Southwest in Irvine, CA. “Whenquality is high and customers don’t havemuch choice, they buy. Southern Hemispherecountries are the source of citrus in the
summer.”Giant Eagle often displays summer citrus
with signage indicating country of origin andalso periodically identifies it as a featureproduct that is showcased at the front of theproduce section and highlighted in theweekly circular.
Competition appears to be a greater chal-lenge than COOL. “I think the U.S. shopperexpects produce to be available year-roundand retail sales would certainly show that theyeat citrus even when domestic supply ends.As long as the quality is consistent, salescontinue. The main challenge faced byretailers is the huge onslaught of summer fruitthey need to promote. Peaches, plums,nectarines, grapes, cherries … lots of fruit isfighting for shelf space and promotion,” saysKaren Brux, North America managing directorfor the Chilean Fresh Fruit Association (CFFA) inSan Carlos, CA. pb
Uruguay citrus exports typically include Mandarins,Satsumas, Clementines, White Murcotts and Navels;new varieties are being tested as well.
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Merchandising Cherries For Maximum Sales And Profits
For many people, the arrival of thefirst cherries at the supermarket isa signal summer has officiallybegun. As cherry marketingseason approaches, produce exec-
utives can remind potential consumers of theirlove of this sweet, pitted fruit. Signage, colorfulattention-grabbing displays and in-store demosare still effective ways to make shoppers awareof the fruit’s availability, but cross-merchan-dising and social media can also play animportant role in increasing sales and profits.
The consumption of fresh cherries in theU.S. enjoyed a rapid rise over the past fewdecades, from lows in the 1990s of 1.3 poundsper person to a peak in 2009 that saw thatnumber hit 2.4 pounds according to theEconomic Research Service for the USDA.This trend has held strong despite occasionalsetbacks in crop yield. There’s no question thatAmericans love this sweet, healthful fruit; thechallenge is how to make shoppers more awareof their presence in produce sections.
HIGH VISIBILITYCherries are now enjoying a longer season
and cherry promotions can be effective wellthrough July. In fact, the marketing season forcherries now extends from early May throughJuly and into mid-August, with tart cherries inseason from mid-June through the end ofAugust according to the National AgriculturalStatistical Service of the USDA. The Fourth ofJuly holiday presents a great opportunity topromote cherries. With so many picnics andbackyard barbecues planned around thisholiday weekend, it’s a great time for fruit sales.Consumers can be reminded that cherries arestill available. In-store displays are perhaps thebest way to engage consumers and get cherrieson their minds.
According to Roger Pepperl, marketingdirector at Stemilt Growers in Wenatchee,WA, the company’s retail partners have seensuccess by challenging produce managers tocompete against each other to create the mostimaginative and sales-driven displays. Pepperlalso saw stores have success with special labelsdesigned to compete with the lesser-qualitycherries that hit the market later in the season.One such label, “Kyle’s Pick,” touts a largercherry (10 row up to an 8.5 row) endorsed byStemilt’s owner Kyle Mathison. Kyle’s Pickincludes only cherries that, according toPepperl, possess “high firmness, proper sugarsand acids … only certain varieties pass the test.”Types such as Skeena, Bing and Sweetheart areincluded in this program.
Another program that retailers have been
using in connection to Stemilt Growers is“Half-Mile Closer to the Moon,” whichfeatures cherries that are grown at aminimum of a half-mile above sea level.Pepperl explains, “Kyle Mathison believesmuch of the horticultural practices of feedingthese cherries during full moon cycles helpsbring out the best flavors.”
The graphic on this pouch bag features ahigh elevation cherry orchard set against amountainous backdrop and bathed in thelight of a full moon. “It truly brings qualityand a ‘Who grew my food?’ marketing senseto the program,” says Pepperl. “Retailers areputting up signage and digital assets to showoff this program that harvests from August7th until we finish around the first week ofSeptember.” Pepperl says this packagingcreates the type of product differentiationthat is key to marketing cherries.
Some consumers may feel cherries, becauseof price, are a luxury and not for everydayconsumption. Once they taste them, however,they may be reminded of their childhood whenperhaps they ate cherries on the front porch ortied cherry stems into bows. Chuck Sinks, pres-ident of sales and marketing at Sage FruitCompany, recognizes the importance ofmaking cherries highly visible to consumersthrough the use of displays. Many shoppers,especially those in the Northeast and Midwest,may be used to an absence of certain fruitsduring the preceding winter months and need
74 / MAY 2015 / PRODUCE BUSINESS
merchandising reviewucherries
How displays, special labels,signage, demos, socialmedia and the roles theyplay generate sales.BY CHRIS AUMAN
at Family Tree Farms based in Reedley, CA, it’simportant to make consumers aware of thestart of the cherry season. “For the first U.S.cherries of the season, signage like ‘Fresh fromCalifornia’ helps consumers know summercherry season started. It can start much earlierthan many consumers realize, so signage likethis is important to help them understand thatthis is fresh U.S. product,” says Plain.
It’s important to recognize that whilepeople may love the sweet taste of cherries, thefruit’s months-long absence from the produceaisles may put cherries right out of consumers’minds. Signage reminds them of cherries’return to the market and also helps customers
the attention of consumers who may be usingthe website to make their shopping lists andwho are looking for potential savings. “E-commerce is a great way to promote cherries— maybe even more effectively than demos,”adds Riggan. “Retailers have a huge impact onwhat customers put on their shopping lists.”
A PROMISING SIGNIn conjunction with these marketing strate-
gies, it’s important for supermarkets toremember the basics. Something as simple assignage can reap significant benefits in raisingconsumer awareness and increasing cherrysales. For Dovey Plain, marketing coordinator
a reminder of their return to the market. Sinks has seen success among retailers who
employ a two-tier system with their cherrydisplays. “Some of the people we see who arehaving a really good response are people whoare starting to do a two-tier program wherethey may have an 11 row for a consumer whois somewhat price conscious, and then they’llhave a 9.5 row cherry for a consumer that’swilling to pay higher dollars. They’re notmissing either spectrum.”
From a retail perspective, Paul Kneeland,vice president of produce, meat, seafood andfloral at Parsippany, NJ-based Kings FoodMarkets, sees value in price choice as well.Kneeland believes growers who use gussetedbags to sell cherries in smaller quantities aremore successful.
“This year, the smart growers will get evensmaller on the bags,” says Kneeland. “If growerscan get them down to a 1-pound bag, then thatwill reduce the sticker shock when customersget to the register. When shoppers see cherriesselling for $4.99 a pound, but get to the registerand see an $8 ring — that may discourage themfrom buying cherries again that season.Gusseted bags at a set price, work well toprevent this.”
SOCIAL MEDIA’S ROLEThe rise in popularity of social media gives
supermarket executives another great tool tomarket cherries. Pepperl has seen success onthese platforms in connecting with customers.“We are doing social media programs forretailers with Facebook, Twitter — includingTwitter parties — and Pinterest. We write aStemilt blog called “The Stem” to talk aboutcherries during the summer. Retail partnersalso do ads with our assets, featuring the large-size cherries we sell.” For Stemilt, this is aneffective way to let consumers know about thequality of its cherries, and it also helps the storesset their product apart from what Pepperl callsthe “poor eating cherry that the competitor hasdown the street.”
Mac Riggan, vice president of marketing atChelan Fresh in Chelan, WA, also recognizesthe value of a strong online and mobilemarketing presence and sees e-commerce askey to making customers aware of cherries.This is accomplished through the use of down-loadable coupons, which retailers display ontheir websites to entice consumers to add thefruit to their shopping lists.
“One of the things we’re doing is e-commerce, where we try to engage thecustomer before they even get to the store,” saysRiggan. This approach enables stores to grab
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Bing Beverage Company produces a naturally-flavored,caffeinated beverage made with Bing cherries calledPetey’s Bing Juice. The company partnered with theChilean Cherry Committee to demo product in produce.
CROSS-MERCHANDISING AND MARKETING
Cross-merchandising promotions areanother good way to increase consumerawareness. Toward this end, the Sage FruitCompany partnered with one of the mostpopular sports organizations in the U.S. —NASCAR. As a part of this relationship, Sagegoes into markets where a race is being heldand does promotions the week before, theweek of, and the week after, in an effort tomaximize the impact of the campaign.Everyday promotions with Disney and Marvelhave likewise produced dividends for Sage. ItsSpider-Man cherry promotion features pack-aging that grabs the attention of parents andkids alike. Sinks credits this packaging withincreasing sales by 18 percent in the storesthat offered them.
Naturally relatable products can also joinforces to form associations in the minds ofconsumers, and demos are a key part of thiscross-marketing partnership. For Brux, a likelyally was Denver-based Bing BeverageCompany, which produces a naturally-flavored,caffeinated beverage made with Bing cherriescalled Petey’s Bing Juice.
“This past season, the Chilean CherryCommittee partnered with Bing Juice ondemos in select retail chains,” says Karen Brux,managing director of the Santiago, Chile-based Chilean Fresh Fruit Association NorthAmerica. “Bing has a cherry-flavored varietythat is very popular around the holidays, so itwas a perfect tie-in with fresh Chilean cherries.Bing developed signage that showed boththeir juice and Chilean Cherries, and then wealso sent our own materials including table-topcards with easel stands and recipe handouts.”
A good mix of traditional displays andsignage, combined with the latest trends inpackaging and labeling, cross-merchandising,marketing partnerships and the use of socialmedia and e-commerce platforms, giveproduce executives many tools with whichthey can successfully market cherries. Usedindependently or in concert with each other,retailers can practice these methods toimprove sales and increase profits year-roundas well as help ensure Americans continue toenjoy the sweet taste and great health bene-fits of cherries. pb
than a yellow Rainier and has an orange-redhue, yet not the deep burgundy color of theDark Sweet. “This cherry has completely different DNA
from any Dark Sweet or Rainier cherry andtruly is the first really distinctive cherry variety,”says Pepperl. The Skylar Rae variety is uniquebecause the fruit’s sugar content of 25 brix,which is higher than that of the Dark Sweet (atabout 19 brix), and Rainier cherries, whichaverage about 21 brix. According to Pepperl,the firmness tests about 35 to 40 percent aboveother varieties. “The flavor, crunch and juice areaddictive as they are hard to quit eating. Thiswill become a huge variety for Stemilt and itspartnered retailers over the next several years asorchards come into production. This cherry isunbelievable.”For Family Tree Farms, whose growing area
is in the central and southern part of the SanJoaquin Valley, there are some new varieties instore for consumers this year as well. Thebrand’s usual varieties of Brooks and Tulare willbe complemented by newer cherries like CoralChampagne, Minnie Royal and Royal Tioga,to name a few, says Dovey Plain. These vari-eties are harvested in a short time and broughtto market quickly. “Our season is from late
distinguish between the different varieties.“Most consumers are familiar with the Bing
variety and its deep, red color,” explains Plain.“Most of the early varieties are a bright, vibrantred — simple variety signage can helpconsumers understand that difference. Varietyinformation also helps feed the knowledge offruit connoisseurs.” Maria Brous, director of media and
community relations at Lakeland, FL-basedPublix Super Markets, agrees signage is animportant part of any complete marketingpackage. “Successful merchandising of cherriesoccurs when the displays are full, with signage,supported by ad placement and secondarydisplays.” Each part of the promotionalprogram supports the other.
VARIETY EQUALS CHOICEBing is one of the most recognizable cherry
varieties, although shoppers may know it by itscolor and shape and not necessarily by name.Besides the beloved Bing, there are other vari-eties that are sure to get cherry lovers excitedabout the new season. At Stemilt Growers,Pepperl predicts Skylar Rae will be a popularvariety on the cherry market this year. Thecolor of the Skylar Rae is a much darker yellow
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April through the end of May — very fast andfurious,” says Plain.
PACKAGING TRENDSPackaging is another way to engage shop-
pers. Sinks at Sage sees a trend in consumerpreference that leans toward pouch bags. “Moreconsumers are starting to look for the pouchbags,” says Sinks, “as opposed to the traditionalcherry bag.”Pepperl would agree with that assessment
and says pouch bags are good for randomweight packages, but he also sees success withclamshells. “Clamshells continue to flourishespecially for club stores and large 3# or 4#units,” he says. “Many retailers are upping theirrandom weight bags from 2.25# bags to 2.5#bags to increase the purchase size. Smaller sizepackages are a diminishing item as drivingpurchase size down below a pound is foolish forany retailer. If you can’t afford to sell a pound ormore, you are selling too much packaging perounce of cherries.”While pouch bags and clamshells are effec-
tive ways to package cherries, alternativepackaging ideas can serve a variety of consumerneeds as well. Chelan Fresh’s Cup o’ Cherries isa way for consumers to eat cherries on the go.
5 WAYS ONE OF THE LARGEST NORTHWEST CHERRY GROWERS HELPS RETAILERS BOOST CHERRY SALES
BY CAROL BAREUTHER, RDNorthwest growers are enjoying a 20/20
cherry season. That is, the five states of Wash-ington, Oregon, Idaho, Montana and Utah areprojected to harvest nearly 20 million, 20-pound boxes of red and Rainier cherries fromMay through August, according to Yakima, WA-headquartered Northwest Cherry Growers.Columbia Marketing International (CMI), willship some 2 million, or 10 percent, of this crop, making the Wenatchee-based companyone of the largest cherry grower/shipper/marketers in the Northwest. Because of thishigh volume, CMI devised a variety of ways inwhich the company works in concert with itsretailers to move the lucrative and seasonalfruit through its fast and furious marketingwindow. Here are a few tips from thecompany’s playbook.
1. Do Your HomeworkAdvance work and analysis of category
performance is one way CMI works with itsretailers to most profitably sell cherries. Thisincludes an assessment of past performanceand how a retailer’s cherry category salesstacks up against its competitors as well as todocumented category best practices. Forexample, an analysis this year revealed howcritical the first few weeks of the season are inoptimizing cherry performance.
“The top retail chains (based on thepercentage of cherry dollars to total produce)start the cherry season very aggressively and
build sales into the peak,” explains Steve Lutz,CMI’s vice president of marketing. “Lowperforming chains lay out the first few weeksand don’t get behind the category until at leastthree to four weeks after the Washington cropstarts. The result is missed sales. Earlymomentum springboards cherry sales at topretailers to over 9 percent of total producedollars by the key Fourth of July holiday. Low-performing retailers fail to establish this earlyseason buying habit with their customers by notpromoting the category. As a result, on average,their category contribution rarely reaches above5 percent of total produce contribution.”
2. Plan CarefullyIt is crucial for suppliers and retailers to work
together closely to plan weekly volume andproduction forecasts. This gives retailers theability to forecast and align their planning toensure they can fully cover their supply needs.
“Cherries can be extremely volatile inproduction, so we think it’s helpful for everyoneto support this advance volume and promo-tional planning,” explains Lutz.
approximately 2 percent of the total crop,according to Northwest Cherry Growers. Yet,they can be a potentially lucrative ring.
“We added cherries to our line of Daisy Girlorganics this season. Daisy Girl is the No. 1selling organic apple brand in the United States,
so we’re pretty excited to add red and Rainiercherries to the Daisy Girl product line,” says Lutz.
4. Packaging That SellsNearly the entire Northwest cherry crop is
sold in some type of packaging. It is a retailer’schoice of packaging that can boost sales.
“We have done a lot to perfect our cherrypouch bag over the past two seasons. Wemade significant advancements and improve-ments in our cherry pouch bag in terms ofmaterials, graphics, colors and even how thebag design is tapered and cut. All of this workis focused on helping retailers put a packageon the shelf that maximizes the impulse appealof cherries,” explains Lutz.
5. Secondary Displays SellRetail studies conducted on behalf of North-
west Cherry Growers document that consumercherry purchases are highly impulsive. In fact,this research reveals that secondary displayscan drive a 25 percent increase in weeklyvolume, even though displays are relativelysmall. This information underscores the impor-tance of secondary displays as a valuableselling tool.
“We offer retailers our ‘3D window display’unit. This free-standing unit can be merchan-dised anywhere in the produce department oreven any high-traffic area in the store to driveincremental sales. These units can be shippedpacked with fruit or flat if that is preferred bythe retail account,” concludes Lutz pb
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“More consumers arestarting to look for thepouch bags as opposedto the traditionalcherry bag.”— Chuck Sinks, Sage Fruit Company
long way toward increasing sales. So doessimply letting the cherries market themselves.“I saw a retailer that had a large bulk display ofcherries,” says Brux. “Yes, there was a lot of self-sampling taking place by consumers, but whenthey discovered the fabulous taste, manygrabbed a bag and bought some to take home.”
Pepperl also sees value in the connection tocooking and baking and he sees retailers havesuccess with these types of programs, such ascherry festival ads that create a link betweenbakery and grocery cherry items. Stemilt’s“Who Grew my Cherry” program, whichfeatures the fifth generation Mathison familyin posters, digital ads and point-of-sale displays,is also used by in-store dietitians to stress theimportant health aspects of cherries. pb
reduce the risk of stroke, heart disease anddiabetes. With such great health benefits,consumers should be eating cherries year-round, yet many may be unaware that this iseven a possibility.
Karen Brux, managing director of theSantiago, Chile-based Chilean Fresh FruitAssociation North America, wants consumersto know that cherries are available most of theyear. “When it’s winter here, it’s summer inChile,” says Brux, “so from November throughJanuary, U.S. consumers can get the fresh,flavorful cherries they love from Chile. Chile’sSouthern Hemisphere location allows U.S.consumers to enjoy their favorite summerfruits, like cherries, during our winter months.”
If making shoppers aware that cherries areactually available during winter months is theonly setback, there are ways to reverse this andget consumers thinking about this fresh fruitoption. The shiny red sheen of cherries canmake a great tie-in with the Christmas holidaywhen desserts abound. Brux advises produceexecutives to “communicate easy wintery ideas,like cherry pie pops, hearty wild rice salad withcherries, cherry chocolate muffins, or grilledcheese with cherry compote.”
Associating cherries with cooking goes a
The 16-ounce cup holds 8 ounces of cherriesand is topped with a two-compartment “smartlid,” which dispenses the cherries from one sideand allows the consumer to dispose of the seedsin the other, for what Riggan calls “a one-handed eating experience.”
FOREVER CHERRIESA good source of antioxidants, cherries are
linked to pain relief for arthritis, gout andheadaches, while tart cherries are said to
SWEET PROMOTIONSWith the arrival of the 2015 cherry season,
growers are busy and so are the folks at North-west Cherry Growers (NWCG). It’s the missionof the NWCG, as a part of the Washington StateFruit Commission, to promote this sweet,versatile fruit to retailers and ultimately toconsumers. James Michael, promotions directorfor the organization, explains, “We're a directvoice for more than 2,100 growers withorchards of all sizes. Our messaging dovetailswith the current focus of consumers andretailers alike.”
The Fourth of July is one of the biggestproduce holiday of the year for retailers, andMichael is looking forward to strong cherryvolume this year. “We're anticipating one ofthe earliest starts in Northwest cherry history,”says Michael, “which will mean cherries couldbe the No. 1 dollar-per-square foot item forJuly.” That’s reason enough to celebrate a fruitthat already has ties to American history. Afterall, it was a young George Washington whocould not tell a lie and confessed to choppingdown his father’s favorite cherry tree.
Numbers don’t lie either, and they show anincrease in demand for Rainier yellow cherries,especially among Hispanics, with the varietymaking up for 10 percent of the crop producedby Northwest Cherry Growers. Retailers show-casing this delicately flavored variety can takeadvantage of this growing market segment.
The taste of cherries alone should beenough to put them at the top of summertimeshopping lists, but Michael reminds us, manytimes out-of-sight means out-of-mind forconsumers. Consumers need a reminder of thegreat taste and health benefits of thiswonderful pitted fruit. “How can one convincesomeone to strive for the cherry on top untilthey've tasted it?” asks Michael. The answer isin-store and street team demos combinedwith social media campaigns that jumpstartthe cherry conversation and gets this fruit backon the shopping lists of consumers. pb
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Untapped Consumers Are Key To Increasing Mango Sales
Four out of 10 consumers havenever purchased a mango,according to the National MangoBoard (NMB). This figure showsthe tremendous opportunity to
reach an untapped market. Once consumersstart purchasing mangos, they are likely tocontinue, according to the NMB’s 2013Consumers Attitude and Usage Study, which alsofound almost all current purchasers plan tocontinue buying mangos in the future.
The NMB also found consumers are mostinterested in purchasing “ripe and ready” fruitwith four out of five current mango buyersseeking ripe and ready fruit. However, NielsenPerishables Group’s FreshFacts shows retailmango purchases declined 12.6 percent from2013 to 2014. What can retailers do to changethis trend?
REACHING OUT TO FIRST-TIME MANGO BUYERS
Tasting is believing, according to manymango experts. In-store sampling events lure
in new consumers and remind those who’vepreviously tried mangos just how tasty theyare. “It may seem old-school, but a knowl-edgeable produce associate with a knife and awillingness to cut and sample ripe mangosfrom time to time can do wonders for mangosales and shopper loyalty,” says Angela Serna,communications manager, the NMB,Orlando, FL.
The taste appeal of mangos can also beused to promote the health appeal of the fruit.“I’ve seen success from demos,” says Tom Hall,sales manager, Freska Produce, Oxnard, CA.“Demos typically get people to try mangos andsee how sweet they are and how good theytaste, and they’re more likely to buy. Also, ithelps at the point-of-sale to have materialtouting the health benefits and that they’rehigh in Vitamin C.”
According to one mango expert, ripemangos are quite effective at selling them-selves. “Most people don’t know mangos otherthan what they’ve had in juices,” says LorenzHartmann de Barros, director of sales, HLBSpecialties, LLC, Pompano Beach, FL. “Cutone open and have them eat a ripe one first-hand and it sells itself. I’ve yet to find someonewho eats a good, ripe mango and says ‘I don’tlike that.’ It’s really hard not to like a mango.”
While the flavor of mangos delights
consumers, the idea of selecting a ripe fruit,slicing, and preparing it may be overwhelmingenough that many keep walking right past themangos and instead fill their shopping basketswith the more familiar apples and bananas.“Most people say they like the flavor ofmangos,” says Serna. “They have tastedmangos in salsa or smoothies, maybe at arestaurant, but if they don’t know how to select,ripen, or cut the fruit, they may be afraid topurchase it.” That’s why communicating howto select, slice, and prepare a mango is a keypart of the NMB’s strategy to reach out toconsumers to help them feel confident inpurchasing the fruit.
HOW DO YOU SLICE IT?Learning how to slice and dice a ripe
mango can be a barrier for consumers. TheNMB is working to educate people on the bestway to cut a mango, including featuring avideo and step-by-step directions on itswebsite. Dodging the flat, long seed in thecenter is the most important part, but otherthan that, there are a few different ways to cuta mango, including dicing, slicing it intospears, and even using a mango splitter.
“The No. 1 question that comes back fromretailers is, ‘How do you cut this thing?’ ” saysChris Ciruli, chief operating officer, Ciruli
82 / MAY 2015 / PRODUCE BUSINESS
PHOTO
COURTESY OF NATIONAL MANGO BOARD
merchandising reviewumangos
Store promotions, signageand associate educationcreate distinction. BY KRISTEN POPE
to build big, beautiful displays and rotate outany old or damaged fruit,” says Serna.
Those displays can incorporate a number ofdifferent varieties of mangos to present adiverse color palette and display. The six majormango varieties the U.S. imports are Ataulfo,Tommy Atkins, Kent, Haden, Francis andKeitt.
“I love it when people do multiple displaysof different varieties with different colors,” saysCiruli. “It gives shoppers an opportunity to seethem more than once and also see different
salad, then adding mozzarella, basil, and adrizzle of balsamic. Combining mango salsawith chicken, fish, or pork can liven up a classicmeal. Slicing mango into yogurt and granolafor breakfast is a way to add a fun twist to.
MANGOS ON THE MINDWith a fruit that might not already be on
the top of people’s weekly shopping lists, it’simportant to make sure it’s easy for consumersto find mangos, and that they’re appealing.“Mangos are usually an impulse buy, so it helps
Brothers, Tubac, AZ, who recommendstraining produce department members withback-of-store posters and many of the videosavailable online through the NMB and othersources.
“The National Mango Board is a goodsource of information for people to find outmore about mangos,” says Hall. “Manypeople may not even know what the MangoBoard is, but it’s good to look and have thatinformation. POS materials are always a goodway, and so are demos and showing peoplehow to cut mangos.”
Keeping information readily on hand forconsumers is key. “One of the best ways is tohave a bin program with a cutting diagramright on the bin,” says Ciruli. “The personbuying a piece of fruit can see how to cut it onthe diagram.”
CROSS-MERCHANDISING AND HOLIDAY SALES
Cross merchandising is another way toshow consumers the variety of ways they canuse mangos. “Market them with othercommodities and show people recipes,” saysRonnie Cohen, vice president of sales, VisionImport Group, Hackensack, NJ. “It’s a verydiverse fruit and has multiple uses. Maybesome people don’t realize what you can do witha mango.”
Cohen suggests adding mango toguacamole to enhance the sweet-and-savoryflavor profile. He also recommends a new twiston the classic PB&J: PB and mango, or evenswitching mangos for tomatoes in a Caprese
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PHOTO COURTESY OF NATIONAL MANGO BOARD
MANGO-SELECTION EDUCATION LEADS TO REPEAT SALESIt can be perplexing to look at a mango
display and try and pick out the best fruit.Consumers wonder whether they should selecta mango based on its color, softness, smell, orother factors. It can be a huge turn-off to bringhome a mango, anticipating a sweet and ripefruit only to find it’s rock-hard and not at all ripe.Educating consumers on ripeness and how toselect a mango can help boost repeat sales.
“It’s never about the color, it’s always aboutthe softness,” says Lorenz Hartmann de Barros,director of sales, HLB Specialties, LLC, PompanoBeach, FL. “Cup it in your hand, and use all fivefingers to give it a little squeeze. It has to havesome give; it can’t be hard. You can’t use justone finger — it will damage the fruit. You haveto use all five fingers, and if you see it give, it’sready. The ripe fruit usually has more aroma andyou can smell it.”
Like an avocado, gentle pressure should findthe fruit slightly yielding. Hard mangos can alsobe ripened at home. “When it’s hard, bring ithome at room temperature or in a paper bagand let it ripen for a few days,” says Cohen.
Ripeness is also based on personal prefer-ence. “I find that everybody has a different tasteprofile,” says Tom Hall, sales manager, FreskaProduce, Oxnard, CA. “It really depends onpersonal preference. Some people tend to likemangos a little more on the ripe side, some likethem over-ripe. Some people like themgreener.”
Consumers unaccustomed to tropical fruitsmay be surprised by some of the characteristicsof a mango. Some varieties, such as Ataulfomangos, will have small wrinkles at peakripeness. To unfamiliar customers, this mayappear to be a fruit gone bad.
Storing mangos at the right temperatures isan important thing retailers can do to make sureconsumers have the best experience with ripefruit. “If it’s held too cold, it will be too hard,”says Chris Ciruli, chief operating officer, CiruliBrothers, Tubac, AZ. “It needs to be 55 degreesor higher at the store level.”
The NMB recommends storing wholemangos between 54-60 degrees Fahrenheit,and never below 50 degrees. Mangos shouldbe displayed at room temperature only. Theboard also offers a Mango Ripening Webinaravailable for retailers and importers to learnabout the specific ripening of mangos, as wellas a backroom educational piece called “TreatMe Like a Banana.” The idea is everyone inproduce knows not to refrigerate bananas,” saysAngela Serna, communications manager, theNMB, Orlando, FL. pb
MULTIPLICITY OF MANGO USAGESmoothies and juices are favorite ways for
consumers to enjoy mangos, but there is awealth of other ways to enjoy their flavors.“The number one usage is smoothies andjuices,” says Ciruli. “But we want to convince aperson that mangos are good for more thanjust that. We’re seeing a lot of mangos mixedinto guacamole to add some zest, and in thetopping on fresh fish. Fresh fish and mangosgo really well together. There’s a recipe withgrilled mango for dessert, seared on a grill withsugar and honey and heated up. There are a lotof creative ways to eat it.”
Mangos are a great addition to manydifferent items. “Typically, we’re starting to seemore people use mangos as salsas,” says Hall.“Mangos go well with quite a few items, fromsmoothies to ham sandwiches with mangos.”
TRUST OVERCOMES CONSUMER INTIMIDATION
Offering samples, social media promotion,and recipe suggestions are some ways toencourage cautious consumers to sample themango. “Recipes work,” says Hartmann deBarros. “People say ‘I like that item, why notadd it to that to try it out?’ If you already likepork roast, might as well try mangos with it.”
Having knowledgeable produce staff is alsovery important, as it can spread informationand help build trust. “Employees of the super-market have to know what they’re selling,” saysHartmann de Barros. “No one really wants tobuy something from someone who doesn’tknow. Everyone wants to buy from a specialist.With fruit in particular, people want to go toa person who knows the fruit and can say ‘Pairit with this recipe’ or ‘Store it this way, cut itthis way.’ All these details transmit trust andthat’s ultimately what we’re looking for whenwe buy something. Having a knowledgeableproduce clerk develops trust.” pb
varying shelf life for different mangos. “Ifeverything goes right, a mango’s shelf life willbe 7-10 days,” says Hall. “Different varietiestend to have different ripening characteristics.It depends on the variety, what area it’s comingout of, and what time of year it is.”
With longer transit times, mangos can havea shorter shelf life depending on how far theyhave to travel. Cohen emphasizes the key is tosell ripe mangos. “Buy ripe, sell ripe,” saysCohen.
types.” Bin programs that display mangos bycash registers and in other departmentsthroughout the store, perhaps next to othermenu options, are also useful.
SHELF LIFEDetermining a mango’s shelf life isn’t an
exact science. It depends on many differentfactors, according to Serna. “There’s no easyanswer to the shelf life of a mango at retail,”says Serna. “It all depends on when it washarvested, the maturity level at harvest, thetime in transportation, and distribution. Onemistake we see way too often is retailersholding mangos too cold, probably in anattempt to increase shelf life. While theirintentions are good, the result will most likelybe chill damage that will show up later in thesupply chain or in the customer’s kitchen.”
Serna encourages customers to let mangosthat need a little extra ripening sit on thecounter at room temperature. “Once themango reaches just the right level of ripeness,it can be moved to the refrigerator for a fewdays or cut up and placed in the freezer for upto six months,” says Serna.
A number of different factors can cause
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A MANGO FOR ALL SEASONSIn the U.S., consumers can find mangos available year-round. Six varieties are most common,
with peak availability shifting so different mangos from different regions are available at differenttimes.
Ataulfo from Mexico ..............................................................March-JulyFrancis from Haiti ..................................................................May-JulyHaden from Mexico ..............................................................April-MayKeitt from Mexico and the U.S. ............................................August-SeptemberKent from Mexico, Ecuador, and Peru..................................January-March and June-AugustTommy Atkins from Mexico,
Guatemala, Brazil, Ecuador, Peru ....................................March-July and October-January
Source: National Mango Board
A FRESH-CUT OPPORTUNITYFresh-cut mangos are a way for consumers
to overcome the obstacles of selecting theperfectly ripe mango and finding the best wayto slice or dice it. However, fresh-cut sales doprovide obstacles for retailers. “If you peel abanana, it looks great the second you peel it,but 5-10 minutes later it starts getting brownfrom oxygen,” says Lorenz Hartmann deBarros, director of sales, HLB Specialties, LLC,Pompano Beach, FL. “The skin protects it. Ifyou cut fruit open, it has oxygen attacking it.”
Distributors want to deliver a product “withoptimal ripeness, not too crunchy but sweetenough,” says Hartmann de Barros. “If it’s tooripe and mushy, people don’t like it either ...It’s challenging to have something ready to eatand keep it that way longer than half an hour.”
Consumers are latching onto the fresh-cutmango market. In 2014, as whole mangosdeclined in sales, fresh-cut mango salesincreased, with “fresh-cut mango dollars perstore per week” increasing by 6 percent,according to the NMB. “Lots of people are notreally familiar with how to cut a mango, butwhen it’s already cut, they are more apt to tryit,” says Tom Hall, sales manager, FreskaProduce, Oxnard, CA.
It also helps consumers overcome the
intimidation factor when choosing a ripepiece of fruit. For the retailer, however, it canbe difficult to get the ripeness level right. “Anunder-ripe mango will be too crunchy and notsweet enough, but let the mango ripen toomuch and it may not hold up to the rigors ofcutting and transportation,” says AngelaSerna, communications manager, the NMB,Orlando, FL.
And the preparation and transportationprocess can be difficult for such a tropical fruit.“The challenge is always temperature and howthey ship it, because mostly when dealingwith pre-prepped or cut fruit, it’s a lot colderthan tropical fruit should run,” Chris Ciruli, chiefoperating officer, Ciruli Brothers, Tubac, AZ. Henotes when the fruit is perfect for slicing, it’snot at peak ripeness, yet at peak ripeness, it’snot as easy to slice since it’s softer.
“Offer the pre-cut the way it’s supposedto be,” says Hartmann de Barros. “Mangosare a tropical item ... If it’s crunchy and theydon’t like it, next time they’ll buy a bananaor an apple. Give them a mango in the rightcondition — ripe and ready to eat. If not, youhave to work twice as hard to overcomemistrust instead of, if from the get-go, theyhave a ripe product.” pb
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Bulk Lettuce ‘Romaines’ On Top
Arenaissance of sorts descendedon the bulk lettuce category, asred, green and oak leaf varietiestake their place next to iceberg;as lolla rosa becomes a familiar
term; and as a deep red lettuce with a nutri-tional punch — even greater than thesuperfood blueberry — is on the way.
Fresh-cut salad products touch all the basesin current food megatrends — they areconvenient, interesting and nutritious — butbulk lettuces refuse to relinquish their role infresh produce.
“With the phenomenal growth of thevalue-added category and the growing numberof SKUs that fill produce departments today, itis tempting to reduce the displays of bulklettuce,” says Pierre Dolbec, vice president ofsales and procurement at Veg Pro Interna-tional, Sherrington, Quebec. “Bulk lettuce isalso more labor intensive, and with tight oper-ating budgets, retailers are continuouslyseeking ways to optimize labor in the depart-ments.”
It is worth the effort, however, to find the
resources needed to maintain the role of bulklettuce as a refreshing centerpiece in produce.
“Bulk lettuce, in my opinion, is a keycomponent in giving the produce departmenta fresh and vibrant appearance,” says Dolbec.“The size and disposition of produce depart-ments vary greatly, and produce managers needto adapt to their individual customer bases. Ifeel it is important to maintain an importantpart of the overall display dedicated to bulklettuce.”
EFFECTIVE DISPLAYS ARE THE TIP OF THE ICEBERG
Lettuce should be given the respect thatcomes with an eye-catching spot in theproduce department.
“Bulk lettuce should be merchandised in ahigh-traffic area, refrigerated at eye level,”advises Claudia Villalobos, marketing andculinary manager at D’Arrigo Brothers ofCalifornia, Salinas, CA, which ships under theAndy Boy label.
Regardless of the abundance or simplicityof the offering, the lettuce display must aboveall convey freshness.
“Bulk lettuce is the cornerstone to the freshlook in grocery stores,” says Caitlin Antle-Wilson, sales and marketing director atTanimura & Antle Produce, Salinas, CA. “Itshould take up 25 to 30 percent of the fresh
bulk category space. It should be merchandisedin a way that allows customers to see it fromafar. In addition it should be refrigerated andmisted properly.”
Nothing says “past its peak” like limplettuce, which means freshness demands acommitment to care for the product after itreaches the store.
“If lettuce is unwrapped, you put it in thewet rack and mist it; if it’s wrapped it’s notgoing to be sprayed,” says Diana McClean,director of marketing at Ocean Mist Farms,Castroville, CA.
Retailers must have the staff available toprovide additional care for unwrapped lettuce,to make sure it keeps that fresh-from-the-garden look.
“The wrapped lettuce is more shelf-ready,”says McClean. “You can just take it out of thecase and put it on the rack. With the nakediceberg lettuce you have to have the labor avail-able for crisping and trimming.”
Appealing lettuce anchors a fresh saladsection that answers the call for healthy eating.
“We recommend bulk iceberg lettuce bemerchandised on the wet rack near its otherleafy green counterparts to create a salad-making destination and color-blockingdisplays,” says Kori Tuggle, vice president ofmarketing at Church Brothers Produce,Salinas, CA.
lettucetmerchandising review
Still a produce leader evenwith the proliferation offresh-cut salads.
BY BOB JOHNSON
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“A full-service grocerystore or super centershould merchandise a full range of bulklettuce items ... .”— Caitlin Antle-Wilson, Tanimura & Antle
lettuce category with different varieties thatbring a little excitement to the category.
“As a spin-off of our foodservice offering— we grow, pack and sell a Tuscan LettuceMix Clamshell: a combination of small, wholeheads of six different red and green leaf lettucevarieties,” says Tuggle. “This allows theconsumer to create their own salad tailored totheir color and texture preferences.”
Tanimura & Antle found its product, acombination of petite gem, tango and oaklettuce, enjoys crossover appeal in both retailand foodservice outlets, according to Antle-Wilson.
Even retailers who consider bulk lettuce arelatively simple category carry more productsthan would have been common in the past.
“I don’t believe it is a category that has anextended number of varieties,” says Riverasfrom Fry’s Food Stores. “It’s just Romaine,green leaf, red leaf, Boston or bibb. We alsocarry a clamshell pack of artisan lettuce. I thinkthat’s important.”
Retailers face a challenge composing themix of available lettuce varieties suited to theircustomer base.
“A full lettuce category should reflect each
Salads have grown so popular that the bulklettuce section, like its fresh-cut cousin, keepssprouting new and interesting alternatives.
“In the past few years, consumers placedmore focus on healthy eating and becomemore open to different types of produce items,including a wider variety of lettuces,” saysAntle-Wilson. “A full-service grocery store orsuper center should merchandise a full rangeof bulk lettuce items including iceberg,Romaine, red leaf, green leaf, artisan lettuce,gem lettuces, and butter, to name a few.”
‘LETTUCE’ MIX IT UPMany grower-shippers jazz up the head
Some creative retailers combine wrappedand bagged bulk lettuce in a separate drysection that lends itself to merchandisingnumerous salad ingredients.
“We are building a dry pack salad destina-tion,” says Aaron Riveras, produce salesmanager at Fry’s Food Stores, Scottsdale, AZ,a subsidiary of Kroger. “There’s the Romainehearts in the dry lettuce section. We alreadyhave a dry butter lettuce. Iceberg is doing well,and we’re trying to convert to a new flow.Traditionally, we had iceberg next to the leaflettuces, but we’re separating the wet from thedry and will put wrapped iceberg with the dry.”
A salad “section” opens up the possibilityfor also displaying other ingredients, includingsome from outside produce.
“Cross-merchandising grocery products inthe produce department such as bacon bits,croutons and dressing — as many retailers arealready doing — stimulates sales of bulklettuce,” says Veg Pro’s Dolbec. “Many shop-pers enter the store with a vague idea of whatthey are looking for, but they generally want toeat healthy. What better way to sell bulklettuce than to have all the ‘fixings’ there atarm’s reach to put together a delicious salad.”
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FINER RESTAURANTS PREFER SMALLER HEAD LETTUCETo see the trends in bulk lettuce, look to the
finer restaurants where customers are hopingto escape salad ennui.
“People get bored and they’re reading thefood blogs and watching the food shows onTV,” says Paulette Satur, founder and owner ofSatur Farms, Cutchogue, NY.
“I only grow baby lettuce heads. They areinto the three and four-star restaurants, andupscale food stores such as Whole FoodsMarket. The restaurants like it because they canmake the plate look different; they’re not justputting a handful of spring mix on it.”
Satur specializes in finding and learning togrow lettuces that can be harvested as smallheads. “They are varieties chosen to headwhen they are small,” says Satur. “We have redand green oak, summer crisps, bibb, Romaines,lolla rosa, and spotted freckles. They head everso slightly. We do frisee as well.”
Small, young lettuce heads are in vogueand some producers concentrate on themexclusively. “We do baby head lettuce for food-service only,” says Ande Manos, marketingdirector for Babé Farms, Santa Maria, CA.“We’ve been doing it for 30 years. It’s mostlythe continental varieties like red oak, green oak
and lolla rosa. Baby head lettuce has becomemore popular ever since we started growing it30 years ago, but it took off in the late 1990s.”
The market appeal of these smallerlettuces is attracting an increasing number ofgrower-shippers. “We started offering minia-ture varieties of lettuce to restaurants andother foodservice outlets in a small way lastseason and were satisfied with the interestfrom customers,” says Pierre Dolbec, vicepresident for sales & procurement at Veg ProInternational, Sherrington, Quebec. “We willdefinitely be growing that program for thecoming season.”
New and interesting greens play a majorrole in enticing consumers to try restaurantsalads. “Some 83 percent of restaurantconsumers say the type of salad green is animportant factor in their decision to order asalad at a restaurant,” says Kim St. George,director of marketing and communications atMann Packing, Salinas, CA. “Menu analysis indi-cates foodservice operators are moving awayfrom Romaine lettuce and are experimentingwith a wider selection of salad green varieties.”
That information was gleaned from a MannPacking-commissioned Technomic survey that
produced a wealth of information on changinglettuce tastes.
“Six in 10 consumers say that a darker coloris more appealing,” says St. George. “Two-thirds of respondents report they perceive saladgreens with a darker color as more upscale orpremium, and four in 10 consumers indicatethey are willing to pay more for darker saladgreen varieties.”
The survey also found a preference forcrunchier texture in greens, and darker greencolor. “Seven in 10 consumers agree that curly,robust, leafy salad greens enhance the visualappeal of salad,” says St. George.
There are crossover products offering food-service operations larger quantities of specialtylettuces that can also be found in some super-market produce sections.
“Our 8-pound bulk Tuscan lettuce mix isgrowing in popularity with foodservice opera-tors,” says Kori Tuggle, vice president formarketing at Church Brothers Produce, Salinas,CA. “It makes it easy for chefs to customizetheir salad offering from one carton versusmultiple cartons. The eight-pound box includesa combination of small, whole heads of sixdifferent lettuce varieties.” pb
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that have palates that like a variety of prod-ucts,” says Villalobos at D’Arrigo Brothers.But, she adds, “Romaine hearts sell the best.”
ROMAINE-ING FRESHMost of the nation’s lettuce comes from the
Salinas Valley, where growers reduced theiriceberg lettuce production over the past decadeby 20 percent, according to the MontereyCounty Crop Report, with the lion’s share ofthat harvest sold wrapped or in bulk for shred-ding into salad products. Meanwhile, leaf lettuce production in the
“Salad Bowl” climbed more than 10 percent,to one-and-a-half times as much as iceberg, asthe new leader Romaine is joined by signifi-cant production of red leaf, green leaf andbutter lettuce. Romaine three to a pack, Romaine singles,
and iceberg head lettuce done well are theheart of bulk lettuce. “Iceberg and Romaine are a must,” says
Dolbec. “Traditional bulk Romaine is losingground to the packaged hearts, but still remainsan important SKU in the bulk section; espe-cially during the summer months. Dependingon available space, red and green leaf shoulddefinitely find some space.” Other lettuces provide variety, but Romaine
and iceberg account for volume in bulk lettuce. “There are also red leaf, green leaf and
butter lettuce, because our retail partners wanta complete selection to offer to their shoppers,”says McClean from Ocean Mist. “For ourcustomers the Top 3 are going to be Romaine,Romaine hearts and iceberg.” There are demographic and regional differ-
ences in the relative popularity of these threestaples. “Iceberg is most popular in the Midwest,”
says McClean. “You see more of the colored
end with Nugget Markets grocery store in theSacramento area, Andronico’s in the San Fran-cisco area, a Whole Foods Market inMonterey, and a restaurant in Paso Robles thatI will deliver to personally.” Whether it is artisan, oak leaf, lolla rosa or
the new Nutraleaf, retailers are charged withlearning for themselves which varieties willexcite their customers. “The number of bulk lettuce items is going
to depend on what their shoppers want to buy,”says McClean from Ocean Mist.There are many SKUs to consider for bulk
lettuce from field and greenhouse alike. “Boston, butter or bibb lettuce are sold
mostly in clamshells and are greenhousegrown,” says Veg Pro’s Dolbec. “In certainmarkets, field butter has a limited popularity,but very few stores on our market actuallycarry it because of minimal sales. With thegrowth of the value-added category, the leaflettuce sales definitely shrunk, but during thesummer months when in season locally, it isdefinitely wise to have them in stock.”
As much as the newer varieties boostexcitement in the bulk lettuce section, threeproducts, done well, remain the backbone ofthe category: Romaine singles, Romaine heartsthree-to-a-pack, and iceberg. “I don’t think there are any big changes in
the varieties,” says Matt Seeley, vice presidentfor marketing at Nunes Company/ Foxyproduce, Salinas, CA. “The varieties vary bythe retailer. I would say Romaine is probablythe most popular variety, and the single heador three-in-a-pack depends on the retailer.Iceberg is No. 2.” Lettuces are growing more varied and
interesting, but a core product continues tocapture the largest marketshare. “They are all in high demand by consumers
store’s demographics; what may be appealingin one part of the country may not fit another,”says Kim St. George, director of marketingand communications at Mann Packing,Salinas, CA. “We can provide that insight toour customers based on an overall categoryreview.”The next lettuce to make a splash could be
a red variety offering more antioxidants thanblueberries, and a powerful vitamin punch. “At a minimum, Nutraleaf has double the
polyphenol antioxidants of blueberries, and ishigh in vitamins A and C, and manganese,which is good for diabetics,” says SteveHenderson, president of Coastline FamilyFarms, Salinas, CA. “This plant is not goingto be as large as a regular head of red leaflettuce, and can’t take the place of red leaf.”Coastline’s new lettuce garnered enthusi-
astic reviews at its public debut among retailerslast fall. “We rolled it out at the PMA inAnaheim and the interest was unbelievable,”says Henderson.Unfortunately, the Nutraleaf plants already
growing in the California desert region at thetime of the Anaheim convention set seedprematurely and were unfit for market, butHenderson remains undaunted. “This is too good to abandon; we’re going
to retool,” says Henderson. “It has the nutri-tional attributes and a color that is dramatic.It’s probably going to end up being just aSalinas season thing, from April to mid-November.” Nutraleaf faces another agronomic chal-
lenge because there was a tradeoff in thebreeding that left the variety vulnerable to themost important lettuce disease as the price fornutritional and visual superiority.“It doesn’t have resistance to mildew, and
organically you can’t spray fungicides,” saysHenderson. “I believe if we could grow itorganically, we wouldn’t be able to produceenough of it.” If Nutraleaf has a future it will have to be in
bulk lettuce, because it performs poorly insalad packages. “We sell it in cartons; it doesn’t lend itself to
processing,” says Henderson. “Ready Pac didsome tests with it, and it just doesn’t have theshelf life. It’s more of a commodity and wouldbe in with the regular red leaf lettuces.” Merchandising Nutraleaf and other more
exotic head lettuces is a matter of matching thevarieties to the demographics. “Going forward, I think we’re going to
retool and do a grassroots campaign to build amarket,” says Henderson. “Our feeling is togradually build up a market starting at the high
PRODUCE BUSINESS / MAY 2015 / 89
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throughout the year.”Romaine is so dominant some retailers
strive to identify themselves through theirofferings of this variety.
“As of last year, 2014, private label makesup 39.5 percent of volume sales of the conven-tional Romaine heart category, according toNielsen’s Perishable Group,” says Tuggle. “Wesee retailers continuing to offer their shoppersboth organic and conventional Romainehearts.” pb
Many grower-shippers report Romainehearts sold three-in-a-pack are leading singlehead Romaine.
“In our markets, the three-to-a-packRomaine grew tremendously over the pastseveral years,” says Veg Pro’s Dolbec. “BulkRomaine is still present in most producedepartments especially during the local seasonwhen freshness and price are more appealing.However, the practicality of the packagedRomaine makes it a favorite among consumers
leaf lettuces on the coasts and the culinarydynamic areas like Chicago, the East Coastand the West Coast.”
Despite the regional taste differences,Romaine enjoys continued growth as the No.1 bulk lettuce.
“Both three Romaine to a pack and singleshave growing sales,” says Antle-Wilson fromTanimura & Antle. “Romaine hearts, threeheads, outsell Romaine lettuce, one head, atmost retailers.”
What is a Pundit?Merriam Webster — a person who gives opinions in an authoritative manner usually through the mass media.
What is the Perishable Pundit?Just ask our readers —
“... providing substance, thought-provoking opinions and, at the very least, waking up many.”
“Excellent commentary on the status of regulators’ positioning on food safety for the produce industry.”
“... bringing some common sense to the E. coli issue of late.”
“... a lively and engaging forum for discussion of issues relevant to the produce industry.”
“... thought-provoking commentary with robust dialog.”
“... keeping the debate going...”
“... kind of an investigative reporter...”
“... extensive coverage leaves no subject without great healthy discussion, and no topic is too sacred.”
“Your courage in stating your opinion and your reaction to criticism is respectful and honest.”
“... focused on the complicated issues relating to food safety in produce.”
“... teaching the industry quite a bit about the power of the internet.”
“... an education for those of us who are still refining our computer skills.”
“... a valuable service.”
“... the most important journalism in the industry, and now we get them every day... you have become the ‘voice’ ...”
“Your analysis of the state of leadership in the produce industry past, present, and future is right on!”
“... a welcome part of the day that stimulates the mind and encourages us to think about and consider a different point of view.”
“... writing with heart and insight...”
“... one of my ‘must-read’ e-mails everyday!”
“Our industry has traditionally not been associated with being ‘deep thinkers’, and you have definitely become our Thought Leader.”
“... a resource that delves deeply into issues impacting our industry. Kudo’s!”
“Keeps us thinking.”
“... spreading your abundant common sense on a daily basis.”
“... most refreshing.”
“The Pundit does, in fact, incite reactions and cause good thinkers to think harder and longer on topics that are current and newsworthy.”
Catch the Perishable Pundit every day. Go to www.perishablepundit.com click onthe “Subscribe Today” button and receive a daily copy of Jim Prevor’s Perishable Punditvia e-mail.
Salad dressings provide additionalcross-merchandising and add-on
sales opportunities.
BY LISA WHITE
92 / MAY 2015 / PRODUCE BUSINESS
Dressing_Layout 1 4/21/15 8:16 PM Page 1
Although numerous reports revealclose to 50 percent of all Amer-ican households use ranchdressing most often, new flavorsare making much headway in
today’s produce departments.This is good news for retailers, who have
more opportunities for cross merchandisingand incremental sales.
“Overall, we’ve seen a definite consumertrend with people moving from the center ofthe store to the perimeter, so there has beenincreased sales in the produce department,” saysAlison Kellogg, brand manager at LitehouseFoods, based in Sandpoint, ID. “This ties inwith [increased sales of ] refrigerated dressingfound in the produce set.”
The proliferation of fresh refrigerated dress-ings and new flavors is partially due toexpanded usage occasions. These products areoften used as dips, marinades and sauces. Also,with healthier versions becoming more avail-able, even those consumers seeking to cutcalories or find more nutritional options areable to find a dressing that fits the bill.
“Millennials have been driving sales,” saysKellogg. “This demographic has been raised onmore ethnic and unique flavors, which havebecome more common in the salad dressingsegment.”
DRESSING TRENDSRetailers are expanding their offerings, due
to the added opportunities in the salad dressingsegment.
Priceville Foodland, a single-store operatorlocated in Decatur, AL, offers three brands andseveral fresh dressing varieties in its producedepartment and doesn’t charge slotting fees.Tye Newburger, the store’s produce manager,says Blue Cheese and Ranch are the mostpopular.
Another independent, Freeburg, IL-basedTom’s Supermarket, offers seven dressing vari-eties in a grab-and-go salad case. There are noslotting fees for suppliers.
“This display faces our checkouts andincludes 18 salad types,” says Kenny Carel,produce manager. “Our biggest sellers areslaw dressing, with the regular selling four-to-one over the light, and Poppy Seeddressing, which sells five-to-one against theother dressing varieties.”
Although Ranch and Blue Cheese remainperennial favorites, according to manufacturersand retailers, more consumers are experi-menting with different dressing varieties.
“There have been more fruity and artisanalflavors launched recently,” says Suzanne Gine-
PRODUCE BUSINESS / MAY 2015 / 93
fresh taste, along with premium ingredients.This has been the catalyst for growth with
Waukesha, WI-based Ventura Foods’ Marie’sline.
“Refrigerated produce dressings continue togrow, as compared to shelf-stable dressings,which are flat to declining,” says AmandaBaiada, senior brand manager for Marie’sRefrigerated Salad Dressings. “Shelf-stablepremium dressings are also increasing in theirretail pricing, making the difference betweenthese and refrigerated produce dressings’ pricemuch less, with some being priced higher.”
HEALTHFUL DEVELOPMENTSIn response to the increasing number of
consumers seeking healthier salad dressingoptions, a number of manufacturers haveexpanded their lines to offer low-calorie, low-fat and/or more nutritious yogurt-basedvarieties.
stro, chief marketing officer at Bakersfield, CA-based Bolthouse Farms. The company recentlyintroduced its Cilantro Avocado dressingvariety, which has become almost as popular asits Ranch line, as well as Caramelized SweetOnion and Creamy Balsamic flavors.
Litehouse Foods’ biggest sellers are Ranch,Blue Cheese, Caesar and Dill, but RoastedPepper and Kalamata olive flavors are trending,as well.
“Consumers are excited to step out of theircomfort zone and try new dressing varieties,”says Kellogg.
At Makoto Dressing Inc. in Melbourne,FL, fruit-flavored vinaigrettes and yogurt-based ranch alternatives have been popular.
“Our consumer research has revealed brandloyalty exists when it comes to a decision topurchase,” says Charles “Buzzy” Blyer, salesmanager at Makoto Dressing.
In addition, more consumers are seeking a
nINNOVATIVE DRESSING OPTIONSDressings aren’t just for salads anymore.
With the proliferation of flavors, consistenciesand unique ingredients, consumers are discov-ering more uses for these products, with helpfrom manufacturers.
Produce departments that help promotealternative ways to consume salad dressingcan not only expand sales of these products,but also increase add-on sales of complemen-tary products.
For example, today’s dressings havebecome a catalyst for creating restaurant-styledinners at home.
Marie’s Refrigerated Salad Dressings’website offers a search engine to helpconsumers pair their need — whether entrée,side dish or dessert — with their favoritedressing.
“They will then receive a suggested recipefrom our collection of more than 1,000 avail-able on the site,” says Amanda Baiada, seniorbrand manager for Marie’s Refrigerated SaladDressings, produced by Ventura Foods, basedin Brea, CA. “We recommend grilled chickenbreast marinated with Marie’s Balsamic Vinai-grette or Lemon Herb Vinaigrette.”
The company’s new Marie’s coleslawflavors provide another opportunity to extendusage of its dressing line.
Last fall, Ventura Foods collaborated withfood bloggers to develop recipes for each of itsfour coleslaw flavors, including OriginalColeslaw, Sesame Ginger, BBQ andChipotle. These recipes are available on Marie’s
Pinterest board and Facebook page. “From a more flavorful coleslaw recipe to
twice-baked potatoes and grilled shrimpskewers, Marie’s is inspiring its consumers togo beyond the basic salad,” says Baiada.
Today’s salad dressings are more likely tobe used as spreads and dips rather than just asalad topper.
“We’ve also seen varieties used as mari-nades and sauces on proteins,” says SuzanneGinestro, chief marketing officer at BolthouseFarms, based in Bakersfield, CA. “This isbecause today’s flavors lend themselves tomore usage occasions.”
For example, Bolthouse Farms’ CaramelizedSweet Onion dressing works well as a substi-tute for onion dip when paired with chips andvegetables, but also can be used as a sand-wich spread.
“Salad dressings have transcended theproduce department and grocery aisle, makingtheir way into meat departments and as acomplement to foods other than lettuce andvegetables,” says Alison Kellogg, brandmanager at Litehouse Foods, headquartered inSandpoint, ID.
Salad dressing portion packs also havebecome increasingly popular, furtherexpanding the use of these products.
“These packets are becoming increasinglypopular as a grab-and-go item for choppedsalad kits and sauté packages,” says Charles“Buzzy” Blyer, sales manager at MakotoDressing, Inc., located in Melbourne, FL. pb
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cross-merchandising opportunities in conjunc-tion with other compatible companies, such ascrouton or other salad topper suppliers.
“The most successful way to merchandiserefrigerated produce dressings continues to bein a vertical set adjacent to or within thebagged-salad section,” says Baiada. “Severalcustomers who have experimented with thehorizontal sets have come back to the verticalsets, recognizing that the small amount ofengagement time the consumer has with theshelf is maximized by having all productslocated together.”
The fact remains refrigerated salad dress-ings can build basket rings and offset the shrinkof companion fresh items. “Anytime you canlink a refrigerated dressing to a related item thathas higher household penetration than the 20percent currently associated with the segment,you build more sales and satisfaction with theconsumer,” says Baiada.
Consequently, dressings are best paired withcompanion items that have higher householdpenetrations to build the category and basketring.
While bagged salads are a natural in termsof cross merchandising, Romaine hearts, kale,tomatoes, cucumbers and peppers are otheroptions.
“With the shift toward healthier eating,salads have become the star of a meal instead ofjust a starter or side,” says Kellogg. “As a result,refrigerated salad dressings are playing a largerpart in consumers’ eating habits.” pb
dressings directly adjacent to the packagedbagged salads.
“This is a very effective way to sell theseproducts,” says Newburger. “We also keep babycarrots, celery and other compatible items inthis vicinity to help spur sales.”
After placing these dressings in thevegetable case by the lettuce and cucumbers,Tom’s Supermarket relocated these products bythe pre-packaged salads and has had moresuccess.
“We cross-merchandise refrigerated dress-ings with grape tomatoes, croutons, sunflowerseeds, honey-roasted pecans, honey-roastedwalnuts and dried peas, which are all displayedin our stand-up grab-and-go case by thecheckout section,” says Carel. “The traffic flowis perfect.”
The fact that these dressings require refrig-eration can be a challenge in terms ofcross-merchandising and marketing. But withmore shoppers visiting the perimeter of thestore looking for healthier alternatives, this hasprovided greater visibility for these items.
“Today’s consumers are looking for fresheralternatives and dressings that provide healthbenefits and fresh taste,” says Ginestro.“Although these dressings haven’t moved intothe dip or sauce space yet, this would be alogical place to evolve.”
Litehouse Foods recommends that itsdressing be merchandised by bagged salad andfresh-cut vegetables to help drive sales. Thecompany works with retail partners to provide
In some regions, these versions have notbeen well-received.
Although Priceville Foodland used to carryGreek yogurt dressing, it stopped when the linewas discontinued by its distributor. “It sold wellat first, but then sales slowed down signifi-cantly,” says Newburger.
Tom’s Supermarket currently carries onlyone Greek yogurt salad dressing, which has notyet caught on.
Yet, data from Bolthouse Farms shows thegrowth in fresh salad dressings is driven by vari-eties with healthier profiles. “Our entire line fitsthis healthier profile,” says Ginestro. “Ourbrands are made with yogurt, not mayonnaise,which provides improved taste and nutritionalbenefits.” The company also launched a line ofGreek yogurt dressing earlier this year.
Litehouse Foods introduced its Opa Greekyogurt dressing line in 2013. In response to thissuccess, the company recently unveiled OpaDippity, a Greek yogurt dip.
“Today’s consumers are looking more atlabels and seek fresh, plant-based or naturalingredients when looking at dressings,” saysKellogg. “There are still occasions where moreindulgent dressings like Ranch and BlueCheese are preferred.”
“While some consumers are looking forlower-calorie products, such as light dressings,we continue to see growth in these top Marie’sflavors,” says Baiada.
MARKETING AND MERCHANDISING
The merchandising opportunities for freshsalad dressings in the produce department arepart of what gives these items an edge overshelf-stable varieties found in the grocery aisle.
Priceville Foodland displays its refrigerated
94 / MAY 2015 / PRODUCE BUSINESS
“Today’s consumers are looking more at labelsand seek fresh, plant-based or natural ingredi-ents when looking at dressings.” — Alison Kellogg, Litehouse Foods
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Our selection of produce bags are available in many sizes, inboth plastic and paper. Enhance the quality of your product
by packaging them in our new Grab-N-Go bags. These strong anddurable products provide a great solution for end consumer use,while maintaining quality and freshness of your fruits and vegatables.Resealable and designed with a handle for easy consumer transport,Monte Package can create custom branded bags, allowing you toconnect your name to your product.
Y our produce department’s fruits and vegetables command today’s consumers’ attention. Produce departmentmanagers must present the concept of “field to shelf” with an understandable, eye-appealing approach. Dynamic,beautiful and creative displays must be effective and attractive to customers.
We, at Monte Package, have the “real world” elements to make your produce department exciting and engaging.With 65% of supermarket buying decisions made on impulse, appetizing produce displays are vital to success.
Consumers are choosing eco-friendly alternatives when they shop, buying productswhere packaging can be recycled. Monte Package offers sustainable packaging for
Fresh Produce,proudly carrying the Earth Choice brand, which is renewable,biodegradable, and eco-responsible.
The elements needed are; the standard wood bulk produce bins, one bushel nailed field crates,and baskets from 1/8 peck to 2 bushel baskets. These products create a true “field to shelf”
presentation.
Let our packaging allow your produce department managers become your on-site masters of merchandising.Increase your sales and profits with packaging and props that can be used season after season, “year after year.”
Founded in 1968, Inline Plastics Corp. is aprivately owned plastic thermoformingcompany that manufactures more than
400 different clamshell and two-piececontainers. All of the company’s containers areFDA-compliant for direct food contact, and areused in the bakery, produce and foodservicemarkets. Inline Plastics has manufacturingand warehousing facilities in Shelton, CT; SaltLake City, UT; and McDonough, GA; as well asan R&D facility in Milford, CT.Inline is dedicated to developing innovative
new products directed by the voice of themarketplace and committed to providing world-class service to their customers. In response to customer demand for environmentallyfriendly, sustainable packaging, Inline Plasticsconverted its entire line of containers to poly-ethylene terephthalate (PET), the samerecyclable material used to make water andsoda bottles. In fact, Inline’s PET material isproduced using a patented, new super-lowenergy efficient process that reduces the
carbon footprint of the material to match thatof material containing 50 percent post-consumer recycled bottles but without the lossof clarity and resiliency commonly found inrecycled PET containers.One of Inline’s most well-known innovations
in packaging design has been the developmentof the first thermoformed clamshell containersthat are resistant to in-store tampering withoutthe addition of a wrap-around label or a shrinkband. The Safe-T-Fresh® line of clamshellcontainers features a leak-resistant seal and aretamper-evident and tamper-resistant uponclosing. The containers incorporate a uniquetearstrip called Safe-T-Gard®, which is removedby the consumer to gain access to the contentsof the container, but discourages tampering inretail outlets. Safe-T-Fresh® containers are idealfor cut fruit, deli, salads, snacks, salsa, sand-wiches, and bakery products, and are availablein round or rectangular styles in 6-ouncethrough 64-ounce sizes. In response to customer demand for
unique, innovative, and reliable grab-and-gopackaging options, Inline developed a line ofSafe-T-Fresh® Snack Cup Containers. Thesecontainers are available in both dome and flat-lid options in 8-, 12- and 16-ounce sizes. InlinePlastics also offers a 2-ounce and 4-ounceinsert cup that fits inside the Snack Cups. Arecently introduced option for these cups isvented lids — for produce that needs venting tomaintain freshness. A group of packaging automation systems
tailored to handle and process the packing ofthe containers supports Inline Plastics’ line ofcontainers. Experienced engineering staff arehappy to assist customers in the integration ofthe automation systems into their currentprocesses and facilities. From container fillingand locking, to top, bottom, or wrap-aroundlabeling, Inline Plastics is the only company inthe industry that provides in-house developedautomation solutions to help its customersreduce costs while increasing throughput andoperating efficiencies.
Making The Case for Nuts And Dried Fruit In Produce
BY ANTHONY STOECKERT AND LINDA BROCKMAN
Things are getting nuttier inproduce departments. Nuts anddried fruits are becoming moremutally exclusive with theproduce department alongside
fresh vegetables and fruit.“The total dried fruit category is most prof-
itable when positioned/sold in the producedepartment,” says Joe Tamble, vice president ofretail sales execution-North America forKingsburg, CA-based Sun-Maid Growers.“Syndicated data shows that dollar velocity fordried fruit is up to 30 percent higher in theproduce section compared to center store.”
Tamble says the produce department is anideal location for the dried fruit category, and“Sun-Maid Growers of California supportsthis in-store position.”
While these products might not seem liketraditional produce, marketers agree they make
for a good fit in produce departments, becauseitems like dried cranberries, raisins, peanuts andvarious trail mix combinations are popularamong shoppers looking for a convenient andhealthy snack.
“More consumers are looking for healthysnacks; what better place to find them than inthe produce section,” says Mark McHale,national sales director for Crispy Green, head-quartered in Fairfield, NJ, which sellsfreeze-dried fruit under the brand Crispy Fruit.“Crispy Fruit is an excellent complement tonatural fruit when snacking on a fresh mangoor apple is not readily available or the mostconvenient.” He adds that Crispy Fruit’s line offreeze-dried products should be in the producesection because they are pure fruit. “It’s just ina different form.”
Consumers are increasingly interested innon-GMO foods with no artificial ingredients,says Howard Brandeisky, senior vice presidentof global marketing and customer solutions forJohn B. Sanfilippo & Son in Elgin, IL. Thecompany’s brand, Orchard Valley Harvest,appeals to the produce shopper who is “funda-mentally different than the core center storeshopper. By meeting their needs, OrchardValley Harvest helps drive incremental sales forboth the produce department and the entirestore,” he says.
VARIETY IN FRUITWhile raisins, prunes and figs have been
around for centuries, today there are plenty ofother varieties. As McHale notes, Crispy Fruitoffers seven flavors: apple, Asian pear, mango,banana, pineapple, cantaloupe and tangerine.“Apple and mango are quite popular, but all ourflavors are loved by consumers across thenation,” he says. One reason he says those fruitsare a good fit for produce departments is“nothing is added,” says McHale. It’s almost asif it were picked right off the tree, but tastes likea crunchy snack.”
This year, Carlsbad, CA-based MammaChia released two new products — OrganicChia Granola Clusters and Organic ChiaVitality Bars — that are perfect for the producedepartment, says Janie Hoffman, companyfounder and chief executive. The company,which infuses its snacks with chia seeds, isexecuting a merchandising program thatcreates a kind of ‘chia destination center,’ whereone rack displays all of the brand’s products.
While location within a store is dependenton each retailer, “our primary focus on place-ment is in the produce department where theMamma Chia beverages and the Chia Squeezeproduct lines launched in most conventionalretailers,” says Hoffman. “Most retailersconsider our new products a brand extension
98 / MAY 2015 / PRODUCE BUSINESS
dried fruits & nutsucategory merchandising
Variety and health benefitsare earning these popularsnack items a place alongside fresh fruits and vegetables.
Dried Fruit_Layout 1 4/28/15 1:38 PM Page 1
produce department from the start,” he says.“We are an all-natural and organic companyand people connect that with fresh product.”
The preferred choice is to be marketed inproduce, says Sun-Maid’s Tamble. “Dried fruitenjoys better exposure as shoppers today aremore likely to shop the perimeter of the store.Retailer profit margins — which can vary fromretailer to retailer — are up to 30 percenthigher. Tamble says Sun-Maid’s products sellat a higher rate when shelved in produce andthe produce departments usually do a better jobof marketing dried fruits.
McHale of Crispy Green says health andconvenience are the biggest selling points whenit comes to marketing dried fruits and nuts.
“Crispy Fruit is promoted as the perfectgrab-n-go snack, because it is 100 percent purefruit — nothing added,” he says. “Consumersknow they are purchasing pure fruit, in a verysnackable, take-along form.”
Health factors are a key point in Aurora’smarketing strategy. “More people areconcerned with their health and are eatingmore fresh produce and organic foods,” saysBellacero. “With more people shopping theproduce section, and spending time and moneythere, it translates into more sales for any itemin the department.” pb
PRODUCE BUSINESS / MAY 2015 / 99
website, dried fruits (such as raisins, figs andprunes) are the perfect way to eat the rightamount of fruit. Most Americans eat far lessfruit than recommended by the U.S. DietaryGuidelines, according to the website. “A goodway to add fruit to your diet is with somethingportable, convenient and readily available likeraisins,” suggests the National RaisinCompany. “Not only do raisins fit into today’sbusy lifestyles, they provide a wide range ofhealth benefits. They’re packed with powerfulphytochemicals and antioxidants, contain nofat or cholesterol, they’re naturally low insodium and a good source of iron, fiber andpotassium. And as every mom knows, raisinsare an excellent source of all-natural energy.”
The National Raisin Company, whichpackages dried fruits for Newman’s Own, otherbrands and its private label, considers twotablespoons of raisins to be one serving of fruit,with 15 grams of carbohydrate and 60 calories,according to the website. It also states raisinsare gluten-free and fit diets that avoid addedsugar. Raisins might be dusted with sugar forcereals and other items, but packaged raisinscontain no sugar.
FITTING IN THE PRODUCE SECTION
Health is just one reason dried fruits andnuts are making their way in the producesection. Versatility is another. Dried fruit canbe eaten on its own as a healthy snack orincluded in recipes such as salads.
“People like seeing dried fruit next to freshfruit,” says Asmar of the National RaisinCompany. “In Produce, where products areconstantly being handled and rotated, driedfruit is comparatively easy to stock andmerchandise with minimal shrink levels.
According to Paul Bellacero, director ofsales development for Aurora Products Inc.,based in Orange, CT, dried fruits have had aplace in the produce department for a longtime. Aurora produces packaged dried fruit, aswell as granola, trail mix and nuts.
“Aurora Products has been selling into the
and want to leverage our brand’s strength bycross-merchandising all of the Mamma Chiaproduct lines in the produce department tomaximize sales opportunities.”
BY THE NUMBERSChicago-based Information Resources Inc.
(IRI) found one of the biggest trendshappening across all demographic groups is anincreased frequency in all kinds of snacking. Inits 2013 State of the Snack Industry report, itfound “snacking behavior has clearly escalatedin recent years, catapulting the blurring ofeating occasions to a whole new level.”
That’s a welcome trend for Sun-MaidGrowers. Tamble cited an IRI study whenexplaining dried fruit’s appeal.
“About 40 to 50 percent of U.S. retailershave dried fruit as a category in produce, andthis percent has been stable during the pastfew years. Produce managers recognize it as afruit that is dried, and dried fruit can alsoserve as an alternative to salty and sugarysnacking,” says Tamble. “They know thetrend toward healthier snacking continues togrow. Parents looking for healthier optionsfor their kids and themselves know dried fruitcan meet those needs.”
According to Chicago, IL-based NielsenPerishables Group FreshFacts 2014, there aresome big sellers for the overall dried fruit andnut category, with the Top 3 being dried cran-berries ($130.2 million in revenue), snack mixes($96.2 million) and raisins ($32.9 million).
Maria Brous, director of media andcommunity relations of Lakeland, FL-basedPublix Super Markets, says these healthysnacks are growing in popularity.
“Nuts and dried fruits are popular with ourcustomers and are seeing double digit increaseseach year,” says Brous. “We began offering aselection of Publix [private label] nuts, driedfruits and dried vegetables more than eightyears ago. Today, that selection is comprised ofmore than 60 options. Raw nuts, such asalmonds and nut mixes are strong sellers.”
HEALTH FOODS FOR A HEALTHY LIFESTYLE
Jane Asmar, senior vice president ofmarketing and sales for the Fowler, CA-basedNational Raisin Company, says there are“numerous health and wellness themes that canbe applied across dried fruit promotions. It’s agreat category to get behind; it’s moderatelypriced, requires no special handling or refrig-eration, it has significant householdpenetration and it appeals to most consumers.”
According to the National Raisin Company
Dried Fruit_Layout 1 4/28/15 1:38 PM Page 2
BY DON HARRIS
During strategy meetings, the subject of the cost of productoften comes up, and management wants to know if there isany way to decrease the costs of products for sale in the
stores. They often ask how we could reduce the costs of freshproduce to allow for more profitability. Their question often is “Whydo we have to pay for the best quality when other retailers use goodquality and create additional profit as well as reduce their pricesaccordingly?” The answer is far more complex than they realize and,once again, “they just don’t get it!”In discussions about the quality of fresh fruits
and vegetables it is inevitable that we discuss theUSDA grading standards. We, as an industry, areguilty of conditioning the customer to acceptaesthetic beauty as a prerequisite for a product tobe deemed of high quality. Product with less attrac-tive appearance is judged to be of lesser qualityand is assigned a grade accordingly. While thereare still some minimum requirements for sugar andother attributes, the primary determination ofgrade is made on the appearance and condition ofthe product. Through years of experience, onelearns that the best quality must include the deliverable to the consumer — flavor and thepleasurable aspects of consumption. Many retailers rely exclusively on buying the
best quality available, and presume this factor willguarantee the best experience for their customersand spark repeat business. Given the presentgrading standards and requirements, this strategy often delivers thebest potential experience for the customer. The problem is producedoes not behave or perform like manufactured goods that aremanipulated to exacting standards, recipes, and specific proceduresto ensure the same flavor, texture, and “eating experience” eachtime it is purchased. Produce, on the other hand, is dependent onmultiple factors including weather conditions, soil makeup, watersources, and harvest schedules. All of these variables are difficult toisolate, measure, and quantify, which leaves ample space for variance in quality.Among the top tier of growers and shippers, there are a few of the
very best who focus not only on the appearance and condition of theproduct but also on its “eating quality.” These growers and shipperstake the time necessary to monitor their harvest. During this moni-toring, they watch the maturity of the fruit, the ratio of sugar andstarch (Brix) readings, and the texture of the fruit. It is vitally impor-
Quality Redefinedtant these factors be considered, especially in fruit, to deliver thetype of “eating experience” expected by the consumer — who isjudging and basing their expectations on the appearance of the fruit. Identifying which of the top growers and shippers produce these
types of products takes diligence and exploration. Many buyersgarnered these relationships over many years of experience andobserved their best-in-class procedures for growing and harvestingfruit that is at its peak of performance and flavor. This complete atten-
tion to detail comes with a cost that is justifiablyreflected in the premium price for the fruit. All toooften, many lesser experienced buyers and thosenewcomers to the industry rely on the reputationof a grower to provide this type of quality. It is acommon trap many retail buyers fall into whenthey believe paying a premium price will allowthem to receive premium quality. This often resultsin a beautiful looking produce department but withproduce that tastes like “cardboard.”The group that stands to lose the most from
this type of activity is the consumer. There aremany documented cases where product, especiallyfruit, is developed and produced for beauty andhas not been successful due to a lack of flavor ordelivery of perceived “eating quality.” If the industry expects to continue growing, not
only among the present customer base, but alsogather new generations of customers to produce, itmust revise and adopt new standards for every
grade specification that provides the customer with the type of “eatingexperience” promised by the outward appearance of the item. In addi-tion, retailers must do their part and check on the execution byadopting inspection standards that not only check on the appearanceand condition of the product but also look at the maturity and flavorprofile ensuring they are receiving what they paid for. It will require thistype of joint effort by both sides of the industry if we are to convincethe customer that not only does the produce look healthy and attrac-tive, but it also delivers a truly enjoyable “eating experience.”
100 / MAY 2015 / PRODUCE BUSINESS
If the industryexpects to continuegrowing … it mustrevise and adoptnew standards forevery grade specifi-cation that providesthe customer with
the type of “eating experience” promised by the
outward appearanceof the item.
Don Harris is a 40-year veteran of the produce industry, with most of thattime spent in retail. He has worked in every aspect of the industry, from “field-to-fork” in both the conventional and organic arenas. Harris is presentlyconsulting on all subjects of retail, category development and sales strategies,among others. Comments can be directed to [email protected].
INTERVIEW BY STEVEN MAXWELLFor the co-owner of Germany’s Global Fruit Point, Sven Heinsohn,
the roots of his involvement in the fresh produce sector can be tracedback to childhood when his family ran an apple farm and businessin the fertile Altes Land region in northwest Germany.
However, Heinsohn — now aged 42 — began his real apprentice-ship in the sector when he became a wholesale and foreign trademerchant for the Bremen-based Atlanta Group, now known as UnivegDeutschland.
Over the years, Heinsohn held a number of positions in the busi-ness until he was appointed co-managing director of Direct FruitMarketing DFM, Atlanta’s subsidiary focused on direct sourcing fromoverseas.
In 2007, with his colleagues Matthias Neuel and René Struve, Hein-sohn set up a new import and distribution company, Global FruitPoint, based in Buxtehude near Hamburg. The owner-managed busi-ness specializes in fresh fruit from overseas, mainly from the SouthernHemisphere.
What have been the key developments for Global Fruit Point’simport business during the past 12 months?
In 2014, we increased our import volumes in table grapes — oneof our key products — from South Africa, Namibia, Peru, Brazil andChile. As far as citrus is concerned, we intensified our easy peelerbusiness, mainly with the Nadorcott variety, and also lemons fromSouth Africa have developed very satisfactorily. The latter is a rela-tively new item for Global Fruit Point, but with very good prospects,as are blueberries from Chile and Argentina. We haven’t launched anynew product but rather concentrated on the consolidation and exten-sion of our existing business.
What would you identify as the key import products for GlobalFruit Point, and where are the most important import sources?
We source table grapes from South Africa, Namibia, Peru, Brazil,and Chile. They are by far the most important product for Global FruitPoint. Also pears from Argentina, South Africa and Chile play a majorrole within our product range. At present, we are in the full swing forthe overseas season, with the most important volumes coming fromSouth Africa, Chile, Peru, Argentina, New Zealand, Brazil, India, andCosta Rica.
I understand Global Fruit Point imports pears from the U.S. Couldyou tell us a little bit more about this business?
Imports of U.S. pears always depend on the European season andexisting European stocks. When the regional stocks are low, we havethe chance to import from the U.S., otherwise it is difficult to competewith the regional production.
Conversation With Global Fruit Point’s Sven Heinsohn
Our partner in the U.S. pear business is Odell, OR-based DuckwallFruit. We very much appreciate the cooperation with Rob Petersenwho has been a loyal partner for years. We feel Duckwall is the bestpear brand in the U.S., especially with regard to the outstandingquality of their Anjou variety. Anjou pears are sourced from the WestCoast, in close cooperation with Duckwall.
Also, Florida grapefruits are an interesting item, depending on theseasonal opportunities.
How did Global Fruit Point become involved in fresh produceimports from the U.S.?
When you are more than 20 years in the fruit business, havingvisited the main fruit fairs in the U.S. for years, over time you get toknow the right people and know where to source in the U.S. It’smainly a question of personal contacts and mutually trustful rela-tionships.
In your opinion, what further opportunities do you see for U.S.fresh produce in Germany and the rest of Europe?
I think pomegranates are a product with very good prospects forthe German and European market.
Are there any challenges that would have to be overcome beforethis could be achieved?
Sea freight is certainly an important cost factor for products suchas grapefruits and pears. Their competitiveness against the regionalEuropean production largely depends on the logistical costs.
Also the exchange rate euro/dollar is somewhat disadvantageousat present, though the situation may change again depending on thegeneral economic development.
Are there any products in the U.S. market you believe have thepotential for big success in Germany and the rest of Europe?
As I said, I see very good prospects for pomegranates, but alsopapayas may find a ready market in Germany and Europe. Further-more, all kinds of berries have a huge potential in our markets, as themega-trend for berries will certainly continue also over the years.Berries are very much appreciated by consumers due to their delicioustaste and nutritional benefits. Crown-less pineapples are anotherproduct that is very common in the U.S. market but usually can’t befound in German supermarkets.
european market
Sven Heinsohn is married and has three children and two dogs. The familylives in the small town of Jork, amidst one of Germany’s most important applegrowing regions. In his spare time, Heinsohn enjoys spending time with hisfamily and friends, and is a sports’ enthusiast, taking an active part in soccer,tennis, windsurfing, skiing and biking.
102 / MAY 2015 / PRODUCE BUSINESS
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Center 4 Produce Safety_Ad 4/23/15 10:29 AM Page 1
In February of this year, the Federal Trade Commission (FTC)blocked the Sysco/US Foods merger in a 3 – 2 ruling saying itwould be anti-competitive, as the new entity would control 27
percent of post-merger United States foodservice market share, and75 percent of national accounts market share.
The FTC further stated that if the merger did go through, 32 localmarkets would have only the new Sysco as a broadline distributor.Industry sales are estimated to be more than $230 billion; based onthe FTC’s 27 percent estimate, the merger would give the new entitymore than $60 billion in sales. Performance FoodGroup would be a distant second with sales atapproximately $15 to $18 billion.
Early in May, the FTC is scheduled to holdhearings on Sysco’s appeal of the ruling. ManyState Attorneys General, editorialists andconsumer advocates jumped on the FTC’s band-wagon, and claim the merger would create adominant national distributor and eliminate mostsignificant competition.
“Prices will increase,” “smaller distributors willbe pushed out,” and “costs at restaurants, hospi-tals, schools, and hotels will rise” are a few of thepredictions if the merger goes through. Interest-ingly, these comments are coming from everywhereexcept from those one would expect to hear from— competing foodservice distributors. The silenceof this industry segment indicates that the FTC’sconcern is unwarranted, and blocking the proposedmerger would be a mistake.
The FTC’s ruling is centered on the concept of a“national market”; in reality, this does not exist. Iffor no other reason than to ensure their primarydistributor is in line with the local pricing, mostnational foodservice customers without their owndistribution systems rely on more than onesupplier in each market, which quite often is USFoods. The proposed merger will result in US Foods disappearingfrom the marketplace, creating a void that will be quickly filled byother distributors that wish to grow their businesses.
The Sysco/US Foods merger will not stifle competition — it willstimulate it. Local and regional foodservice distributors across thecountry danced in their offices when the merger was announced.Plans are already being implemented to take advantage of thevacuum that will be created by the disappearance of US Foods. Likedistributors, customers also began moving to alternate suppliers inanticipation of the merger. Sysco’s competitors are planning to expand
SYSCO/US Foods Merger: Good Or Bad For The Wholesale Industry?
into other markets; this growth will require capital expenditure andcreate jobs.
Mergers of giant distributors can result in a cultural clash; the newentity can struggle to maintain momentum, let alone blow the doorsoff the competition. In December of 2001, US Foods acquired nationalbroadliner, Alliant Foodservice. In Western Pennsylvania, a mid-sizedmarket, the acquisition left the new company with three divisions inthe area: Cranberry, 22 miles north of Pittsburgh; Greensburg, 30miles east of Pittsburgh; and Altoona, an hour east of Greensburg.
Those of us in the marketplace waited to see whichone or two of the divisions would close their doorsafter the merger. Remarkably, there seemed to belittle or no coordination between the divisions.Sales representatives from one division solicitedcustomers from the other US Foods divisions, andoften offered deals that undercut their “brother”company’s prices. Eventually there was some inte-gration on the purchasing side, but it took almostfive years for corporate to finally close the Greens-burg facility. Sysco and the foodservicemarketplace are not standing and waiting for FTCapproval of the proposed Sysco/US Foods merger.Plans are in motion inside Sysco for the newcombined company. If the merger is prohibited, itwill cost Sysco millions of dollars in time allocatedto strategy, as well as legal fees. The competitionthat spent time and money on expansion in antic-ipation of the merger may scale back their plans abit, but they will be aggressive wherever they go.
The only folks not planning for their future asan operator in the marketplace has been US Foods.In the past several months, US Foods’ energy wasfocused on integrating into the new Sysco, and notat means for organic growth and collaboration withtheir supplier base. Meanwhile, the rest of themarketplace (both competitors and customers) is
planning a future that does not include US Foods.If the merger falls through, the question may very well be: “Can a
weakened US Foods make it on its own?” If US Foods does notsurvive, the FTC will end up with a marketplace that looks like the onethey fear from the merger.
wholesale market
104 / MAY 2015 / PRODUCE BUSINESS
If the mergerfalls through,the questionmay very wellbe: “Can a
weakened USFoods make iton its own?” IfUS Foods doesnot survive, theFTC will end upwith a market-place that
looks like theone they fearfrom themerger.
Alan Siger is chairman of Siger Group LLC, offering consulting services inbusiness strategy, logistics, and operations to the produce industry. Prior toselling Consumers Produce in 2014, Siger spent more than four decades growingConsumers into a major regional distributor. Active in issues affecting theproduce industry throughout his career, Siger is a former president of the UnitedFresh Produce Association.
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BY SCOTT J. SOARES
How do you create year-round demand for an iconic fruit that isso historically tied to one particular season? The short answer:create interest at the time of year when we are least apt to
think of it. As a native American fruit, cranberries are well aligned withFourth of July and summer grilling — a favorite American holiday andpastime that is also well served through the produce aisle. As aninroad to accessing cranberry products, placement of cranberry itemsin produce also allows the retailer to link complementary offerings andbuild on [cranberry] education. Creating a new seasonality and sales spike is not quick or easy.
Because of the commitment, cost and effort, the Wareham, MA-basedCranberry Marketing Committee USA (CMC) began with a pilot programto determine if in-store promotions, coupled with digital marketingand product sales events, would pique consumerinterest and result in a positive sales impact.
Step 1: We identified a retail chain located in oneof the country’s top cranberry growing regions —Southern New England.
Step 2: We reached out to the retailer andproposed building on an existing in-store dietitianprogram designed to enhance customers’ shoppingexperiences.
Step 3: We invited industry partners to considercoupling with these “off season” activities by runningin-store sales events for products that complementeddigital, print and in-store sampling as well as promo-tional activities.
The CMC reached out to retailer Big Y Foods, Inc., Springfield,MA, and proposed building on its existing Living Well Eating Smart(LWES) program, run by Big Y’s in-house registered dietitians (RDs).The CMC and Big Y worked together, leveraging the retailer’s nutri-tion program to introduce shoppers to the health benefits, flavorsand versatility of cranberries. LWES features healthy foods — alongwith their benefits and uses — in supermarket newsletters as wellas during key promotion windows.
Cranberry industry partners took advantage of the sales opportu-nities that accompanied LWES programming. We worked with Big Y toadd various layers of consumer engagement in the effort. When deter-mining additional elements of this program, we expected consumerswould appreciate not only the sale prices but also new ideas for whatthey could do with cranberries during the summer months.
Throughout the summer, cranberries in dried, frozen and sauceform were highlighted in the LWES newsletter and through socialmedia promotions; Big Y offered cranberry recipe giveaways and theCMC posted geo-targeted messages on Facebook and Twitter to driveawareness and sales. We enlisted a Connecticut-based registered dieti-tian who participated in several local television segments to amplifymessaging around the benefits and versatility of the fruit and referencethe cranberry news at the Big Y locations throughout Massachusetts
In Pursuit Of A Paradigm Shift For Cranberry Sales
and Connecticut. We also worked with Big Y to host culinary demos (two dried fruit
events, one juice and one frozen fruit event within produce) at high-traffic Big Y locations — featuring Fourth of July and summer barbequerecipes. Shoppers are looking for new recipe ideas, especially thosethat incorporate fruits and vegetables in unique ways, so we providedshoppers with summer recipe cards to take home post-demonstrationwith ideas such as a cranberry barbeque sauce, smoothie or potatosalad. When attending an in-store cranberry food demo at a Big Ystore in Massachusetts, we heard shoppers talk about how they neverthought of using dried cranberries in potato salad or coleslaw, butthey were enthusiastic about trying it.
The added benefit of sale prices and free recipe cards that accom-panied these demonstrations created a winningcombination for raising cranberry awareness. Bydesign, the execution of this pilot in a region wherecustomers are familiar with cranberry production alsoallowed shoppers to support local farmers and tothink about diverse year-round applications for thisfamiliar fruit.
One key learning with this experience was thevalue of partnering with an established in-houseretailer nutrition program. Health plays a role in foodpurchase decisions with 64 percent of consumers —according to the 2013 Food & Health Surveyconducted by the Washington D.C.-based Interna-
tional Food Information Council Foundation (IFIC), which is a nonprofitorganization whose mission is to communicate science-based infor-mation on food safety and nutrition to consumers. Other researchshows evidence that the cranberry may provide big health benefits,and a serving of fresh cranberries is a good source of vitamin C andfiber. We were able to leverage these health messages through ourpromotions to pique consumer interest for cranberries.
The LWES channels and additional promotions increased cranberryvisibility in-store and drove sales throughout the summer. Consumerswere very responsive to cranberries as a food fit for Fourth of Julyparties and the summer grilling season. Our 360-degree approachresulted in upwards of a 50 percent increase in sales compared to aproduct sale alone.
Through this pilot program, we proved what we already know tobe true. There is always an opportunity to educate consumers aboutthe versatility of food they enjoy but don’t always think aboutthroughout the year. We “simply” needed to provide them with theright tools: new and unique ideas; delicious and easy recipes; andhighlighting the nutritional value to make cranberries appealing.
Scott J. Soares is the executive director at the Wareham, MA-based CranberryMarketing Committee USA. The Cranberry Marketing Committee USA was estab-lished as a Federal Marketing Order in 1962 to ensure a stable, orderly supply ofgood quality product.
There is always anopportunity to
educate consumersabout the
versatility of a foodthey enjoy but
don’t always thinkabout throughout
the year.
PRODUCE BUSINESS / MAY 2015 / 105
voice of the industry
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Receive supplier information fast by using the PRODUCE BUSINESS Information Showcase. Here’s how:Contact the advertiser directly via the website, email, or phone listed in the ad.
COMPANY PAGE # PHONE WEBSITE COMPANY PAGE # PHONE WEBSITE
MAY 2015
information showcase
Kerian Machines, Inc. ......................69..........800-551-5188 ..............................www.kerian.comKeystone Fruit Marketing, Inc. ........60..........717-597-2112 ..................www.keystonefruit.comLakeside Organic Gardens ..............48..........831-761-8797 ............www.lakesideorganics.comLancaster Foods, Inc. ......................38..........410-799-0010 ................www.lancasterfoods.comLGS Specialty Sales, Ltd. ................71..........800-796-2349 ..........................www.lgssales.comLondon Produce Show ....................7 ..........44 20 3006 8568www.londonproduceshow.co.ukMann Packing Company, Inc. ..........9 ..........800-884-6266 ..........www.veggiesmadeeasy.comMIXTEC Group..................................36..........626-440-7077 ..............................www.mixtec.netMonte Package Company................95..........800-653-2807 ......................www.montepkg.comNational Mango Board ....................83..........877-MANGOS-1............................www.mango.orgNew Jersey Departmentof Agriculture ..............................63..........609-292-8853............www.state.nj.us/agriculture
New York Produce Show And Conference ................21..........561-994-1118................www.nyproduceshow.com
Northwest Cherry Growers ..............79..........509-453-4837Pacific Tomato Growers....................61..........209-450-9810 ..............www.sunripeproduce.comParamount Citrus Association ..........5 ..........213-612-9957..............www.paramountcitrus.comPeri & Sons Farms ..........................37..........775-463-4444 ..................www.periandsons.comProduce for Better Health Foundation......................101 ........302-235-2329 ................www.pbhfoundation.org
Spice World, Inc...............................53..........800-433-4979 ................www.spiceworldinc.comSunkist Growers, Inc. ......................31..........818-986-4800............................www.sunkist.comTanimura & Antle, Inc. ....................29..........800-772-4542 ......................www.taproduce.comTodd Greiner Farms..........................61..........231-873-2828 ...........www.toddgreinerfarms.comThe Tofurky Company ......................41..........541-436-3531 ............................www.tofurky.comUesugi Farms, Inc. ..........................60..........408-842-1294....................www.uesugifarms.comUnited Fresh Produce Association ..90..........202-303-3400 ......................www.unitedfresh.orgThe USA Bouquet Co. ......................20..........800-306-1071 ..............................www.usabq.comVillage Farms ..................................33..........888-377-3213 ....................www.villagefarms.comWell-Pict Berries ..............................49..........831-722-3871............................www.wellpict.comYakima Fresh LLC ............................75..........800-541-0394 ....................www.yakimafresh.com
Maurice A. Auerbach, Inc. ................53..........201-807-9292 ..........................www.auerpak.comBabe Farms, Inc. ..............................61..........800-648-6772......................www.babefarms.comBig Red Tomato Packers..................69..........772-466-0700 ....www.bigredtomatopackers.comBlue Book Services..........................25..........630-668-3500 ..........www.producebluebook.comBorton & Sons Inc...........................78..........509-966-3905......................www.bortonfruit.comCalifornia Avocado Commission ......17..........800-344-4333..www.californiaavocado.com/retailCalifornia AvocadoCommission ........................BELLYBAND ..800-344-4333..www.californiaavocado.com/retail
Canadian Produce Marketing Association ................68..........613-226-4187 ..................................www.cpma.ca
Capital City Fruit Co., Inc. ................37..........515-981-5111 ..................www.capitalcityfruit.comCenter for Produce Safety ..............103 ........530-757-5777....www.centerforproducesafety.orgChristopher Ranch ..........................53..........408-847-1100 ............www.christopherranch.comCiruli Brothers..................................85..........520-281-9696 ..................www.cirulibrothers.comColumbia Marketing International ..77..........509-663-1955 ......................www.cmiapples.comDel Monte Fresh Produce ..............108 ........800-950-3683................www.freshdelmonte.comDole Fresh Fruit Company ................2 ..........818-879-6600 ................................www.dole.comdProduce Man Software ..................38..........888-PRODMAN ..............www.dproduceman.comFierman Produce Exchange ............36..........718-893-1640First Fruit Marketing ........................40..........509-853-4710 ........................www.firstfruits.comFloral Business ................................97..........561-994-1118 ..www.floralbusinessmagazine.comFresh Farms......................................42..........520-281-2030Fresh Origins, LLC ............................58..........760-736-4072 ....................www.freshorigins.comThe Garlic Company ........................55..........661-393-4212............www.thegarliccompany.comGourmet Specialty Imports LLC ......54..........610-345-1113Harris Consulting Solutions ............68..........269-903-7481Hood River Cherry Company ..........81..........541-386-2183 ............www.hrcherrycompany.comHouse Foods America Corporation ..................59..........714-901-4350....................www.house-foods.com
I Love Produce LLC..........................54..........610-869-4664 ..................www.iloveproduce.comInline Plastics Corp. ........................96..........800-826-5567..................www.inlineplastics.com
BLAST FROM THE PAST
It was spring of 1984, and 22-year-old Al Murray was a year intohis position as products marketing representative with the NewJersey State Department of Agriculture when this picture was
taken. This was also his first job after graduating Susquehanna Uni-versity in Selinsgrove, PA, with a degree in business marketing andmanagement.“I answered an ad in the paper … and 32 years later, I’m still
here,” says Murray with a chuckle. Today, Murray is the assistantsecretary of agriculture. Throughout his time with the Department,he held the positions of Bureau Chief, Bureau of Market Develop-ment and Product Promotion, Director, and Division of Markets.Murray recalls the New Jersey Department of Agriculture’s Jersey
Fresh advertising and promotional program was in its infancy inthe early ’80s. “The Department was filming its first Jersey Fresh tel-evision ad featuring New Jersey Secretary of Agriculture Arthur R.Brown, Jr. and New Jersey Governor Thomas H. Kean,” says Murray. Part of the commercial was shot at the Vineland Produce Auc-
tion, a farmer-owned co-op that now generates around $67 millionin business — making it the largest co-op in New Jersey, accordingto Murray.“The average size farm in Jersey is about 71 acres, which can’t
generate much to sell to major retailers, so the co-op is for small
blazing newjersey trails
106 / MAY 2015 / PRODUCE BUSINESS
farmers to consolidate loads into one giant load that can be soldthroughout the country,” says Murray.“This commercial was the first in a series featuring the Gover-
nor and the Secretary, and it promoted New Jersey’s farm productsthroughout the New Jersey/New York/Philadelphia region. The JerseyFresh program was one of the first state-sponsored programs toadvertise and promote its state’s agricultural products.“I was taking photographs to be used for publicity photos in
later projects, possible news releases, and to document our activ-ities,” explains Murray. “It was a very exciting time, because wewere blazing new trails.” pb
(L-R) Al Murray, Arthur R. Brown, Jr. and Thomas H. Kean
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