DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G...

100

Transcript of DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G...

Page 1: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX
Page 2: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

DOLE.qxd:Ad 7/27/12 4:54 PM Page 1

Page 3: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 3

22 MARKETING EXCELLENCE AWARDS

TwentyWell Rounded CompaniesGarner Industry Recognition

10 THE FRUITS OF THOUGHT

Is United/PMAMerger Dead?

94 RETAIL PERSPECTIVESense Of Urgency

96 EUROPEAN MARKETTransparency Needed ToUncoverPotential Contamination Problems

97 VOICE OF THE INDUSTRYProduce Roots GoDeepAt TheNational Grocers Association

4 THE QUIZ

8 WASHINGTON GRAPEVINE

12 TRADE SHOW CALENDAR

14 PRODUCE WATCH

18 RESEARCH PERSPECTIVES

19 COMMENTS AND ANALYSIS

98 INFORMATION SHOWCASE

98 BLAST FROM THE PAST

AUG 2012 • VOL. 28 • NO. 08 • $9.90

p. 86

20 FROM THE PAGES OFTHE PERISHABLE PUNDITA Closer Look At The Dynamics That LedTo The Collapse Of The United/PMAMerger

31 DOLE CONSUMER RESEARCHYIELDS SHOCKING INSIGHTIt may be time to rethink the producedepartment and howwe’re selling to consumers.

48 ETHNIC GUIDEBOOK

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.

p. 31

36 TRANSPORT PACKAGING: UPHOLDING QUALITY THROUGH THE SUPPLY CHAIN

Even before fruits and vegetables are put on display for the consumer, the choice of packagingused to bring produce to the warehouse or retail store impacts a wide range of bottom line issues.

44 ON STAGE AND IN THE SPOTLIGHT: TAILGATING SEASON BEGINSTailgatingmay bemore a state of mind than a specific event. However you choose to define it,the idea offers great promotional opportunities and ways to capture customer loyalty.

50 WASHINGTON APPLE VARIETY REPORT:WHAT’S HOT, WHAT’S NEW, WHAT’S NEXT?With new varieties popping up at breakneck speeds,Washington applesare proving their power at produce departments around the country.

59 FOUR WAYS TO SELL MORE AVOCADOS IN THE FALLWith a year-round supply and plenty of produce-centered holidays,avocados can bring ring to your produce department in the fall months.

66 ALL ABOUT FRESH JUICE IN PRODUCEWith a continuous focus on health and wellness, juices placed inproduce departments are practically jumping into consumers’ carts.

REGIONAL MARKET PROFILE70 Chicago: A Town As Diverse As Its Produce

With a centralized location, plenty of local farms and thriving wholesale, retail andfoodservice markets, Chicago plays an important role in the American producemarket.

MERCHANDISING REVIEWS79 Onion Opportunities

By educating consumers and properly merchandising onions,produce departments can capitalize on this lucrative segment.

86 Mushrooms: Five Top Challenges & OpportunitiesAs consumers focus on healthful eating,mushroomsare a natural choice to shine the light on in produce.

DRIED FRUIT & NUTS91 Sell Raisins To Increase Produce Sales And More

This versatile dried fruit champion adds a unique presence in anyproduce section, providing opportunities for greater sales all year long.

TOC.qxd:Layout 1 8/8/12 5:01 PM Page 1

Page 4: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

PRODUCE QUIZ

AUGUST 2012 • VOL. 28 • NO. 08 • $9.90

P.O. Box 810425 • Boca Raton • FL 33481-0425Phone: 561-994-1118 • Fax: [email protected]

PRESIDENT & EDITOR-IN-CHIEFJames E. [email protected]

PUBLISHER/EDITORIAL DIRECTORKen [email protected]

SPECIAL PROJECTS EDITORMira [email protected]

ASSOCIATE EDITORJennifer Leslie [email protected]

CIRCULATION MANAGER

Kelly [email protected]

EXECUTIVE ASSISTANTFran [email protected]

PRODUCTION DIRECTORDiana [email protected]

PRODUCTION LEADERJackie Tucker

PRODUCTION DEPARTMENTSUNSHINE GORMANFREDDY PULIDO

TRADE SHOW COORDINATORJackie [email protected]

EDITORIAL INTERNMadeline [email protected]

CONTRIBUTING EDITORSStathi Afendoulis, John Aiello,Meredith Auerbach, Carol Bareuther,Bob Johnson, Jodean Robbins, Lisa White

ADVERTISINGEric Nieman, Associate [email protected]

Sandy [email protected]

Bill [email protected]

Ellen [email protected]

FLORAL DEPARTMENT MARKETINGE. Shaunn [email protected]

Send insertion orders, payments, press releases,photos, letters to the editor, etc., toPRODUCE BUSINESS, P.O. Box 810425Boca Raton, FL 33481-0425PH: 561.994.1118 FAX: 561.994.1610

PRODUCE BUSINESS is published by Phoenix Media Network,Inc. James E. Prevor, Chairman of the BoardP.O. Box 810425, Boca Raton, FL 33481-0425.Entire contents © Copyright 2012Phoenix Media Network, Inc. All rights reserved.Printed in the U.S.A.Publication Agreement No. 40047928

Photocopies of this form are acceptable. Please send answers to:AUGUST QUIZ PRODUCE BUSINESS • P.O. Box 810425 • Boca Raton, FL 33481-0425

WIN COMPACT ZOOM BINOCULARSThese compact binoculars combine the best image quality, ease

of use and durability. A grip-enhanced rubberized coating preventsdamage after repeated drops. The lenses provide up to a 261-footfield of view at 1,000 yards and offer 8 or 16X magnification. Tripodmount included.

This issue was: � Personally addressed to me � Addressed to someone else

Name ______________________________ Position ______________________________

Company __________________________________________________________________

Address ____________________________________________________________________

City _______________________________________________________________________

State _____________________________________ Zip _____________________________

Phone ______________________________ Fax __________________________________

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 thequestions 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 drawing fromthe responses received before the publication of our October issue of PRODUCE BUSINESS. The winner must agree to sub-mit a color photo to be published in that issue.

QUESTIONS FOR THE AUGUST ISSUE1) According to Avocados FromMexico, howmuch have avocado sales increased? _____________

______________________________________________________________________________

2)What social media site does Baero use? _____________________________________________

______________________________________________________________________________

3)Who is the executive director at UC Davis’ Center for Produce Safety?_____________________

______________________________________________________________________________

4)What year was Anthony Marano Company established?________________________________

______________________________________________________________________________

5) Research shows that each of POMWonderful’s display bins generates howmuch money in sales?

______________________________________________________________________________

6)What is the name of the children’s promotion created by Yakima Fresh? ___________________

______________________________________________________________________________

Inter-Valley Produce open-ed in 1964 as a commissionmerchant buyer. June Baldez,the company’s current pres-

ident, joined the team in 1976 as afield produce buyer. “I was a farmer at thetime, and my family was in the quality pack-ing business, so it was quite a natural transi-tion for me,” says Baldez.

Baldez met her husband at Inter-Valley;it was his family’s business, and the tworan the show side-by-side. “Since my hus-band passed in 2001, the business hasevolved into a storage and warehouse facil-

ity. It’s a good thing my late husbandtaught me how drive a forklift, becausenow I do it all,” Baldez says with pride.“We mostly store fresh produce from farm-ers or distributors like CF Fresh, and thenload their trucks. There’s also one roomreserved for Bonnie Plants, a national plantwholesaler that sells to Home Depot,Loews and the like.”

Baldez has been getting PRODUCE BUSINESSfor years. “I read it cover to cover to keepmy finger on the pulse of the industry. We’vebeen reading it for as long as I can remem-ber,” she says.

THIS MONTH’S WINNERJune BaldezInter-Valley Produce Inc.PresidentWapato, WA

4 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

Quiz.qxd:Layout 1 8/8/12 12:42 PM Page 1

Page 5: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Vision.qxd:. 7/27/12 5:19 PM Page 1

Page 6: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Wonderful P.qxd:Ad 8/1/12 1:03 PM Page 1

Page 7: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Wonderful P.qxd:Ad 8/1/12 1:05 PM Page 2

Page 8: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Highway Reauthorization BillFinally Hits the Open Road

After years of extensions of currentlaw and many fits and starts, a rareincident of bipartisanship brought

Congress together to finally pass the HighwayReauthorization Bill earlier this summer. Thebill outlines specific benefits for the produceindustry, noting the perishability and otherunique factors involved in transportation ofproduct. There were attempts to includelanguage that would allow an increase intruck weights, which would increase efficien-cies along the produce supply chain, but astudy on the safety of the increase wasincluded instead. Hours of Service rules,licensing and logging provisions are alsoincluded in the bill, which allowmuch neededflexibility for the entire agriculture industry.

President Obama signed the bill into lawon July 6, after Congress had previouslypassed nine extensions of the 2005 law, due tothe inability to reach an agreement on trans-portation spending priorities or budget. Thepackage, formally referred to as MovingAhead for Progress in the 21st Century, orMAP-21, retains current funding for trans-portation programs at slightly more than$100 billion and reauthorizes these programsthrough September of 2014. In addition tohighway transportation programs, the legis-lation also reauthorizes a variety of othersurface transportation programs. Given thehighly partisan, volatile atmosphere onCapitol Hill, the passage of the HighwayReauthorization Bill is looked at as a rarebright spot in the 112th Congress.

The conditions of America’s roadways andthe regulations for commercial driving arecritical to the produce industry, which makesa number of the legislation’s provisionsparticularly relevant.

Truck Size And WeightA provision regarding the ability of states

to allow for increased truck weights, which

United Fresh supported, was the subject ofintense debate. Unfortunately, no increase insize and weight limits was included in the bill,other than an increase in allowable weight foridling reduction devices from 400 pounds to550 pounds. The bill requires the Departmentof Transportation to conduct a comprehen-sive size and weight study that is due in twoyears. United worked with industry partnersto include language in the legislation for thestudy to be done as expeditiously as possiblein hopes of gathering data that supports theargument for increased truck weights in thenext reauthorization. While it is disap-pointing that Congress did not includelanguage to give states the flexibility to allowincreased truck weights, which has beenproven to be safe many times, United willcontinue to work with like-minded coalitionpartners to ensure that the study is completedat the earliest possible date and that policy-makers and their staff are as informed aspossible about the safety of increased truckweights as well as the needs of the agriculturesector on this issue.

Transportation Of AgriculturalCommodities And Farm Supplies

Of particular interest in the legislation is theprovision regarding the agriculture exemptionto the Hours of Service (HOS) rules. MAP-21clarifies that the movement of farm supplies,as defined by the measure, include trans-porting supplies, from a terminal ordistribution point to the retail site or farm.

The language also increases air mileagefrom 100 to 150 and eliminates “in the state”from the language.The inclusion of this phraseclarifies the intent for the exemption to bothinterstate and intrastate commerce. This clari-fication is much needed to ensure thatagriculture has the flexibility to adapt to avariety of changing factors, such as weatherand business conditions.

Commercial Drivers’ LicensesThe law also contains language exempting

farm vehicles from the requirements relatingto commercial drivers’ licenses.

Electronic Logging DevicesThe bill requires the Department of Trans-

portation to develop regulations mandatingelectronic logging devices (EOBRs) for motorcarriers who must now complete paper logs.The regulations must be in place within oneyear; after which, carriers will have two yearsto adopt/install the devices.

Broker BondThe bill increases the broker bond to

$75,000 and applies it to freight forwarders.It also tightens requirements on bondingcompanies to respond to carrier claims andincludes amending language allowing author-ized motor carriers the flexibility to subhaulduring the busiest times of the year.

While the law is certainly not perfect anddoes not contain all the provisions thatUnited Fresh would have liked to seeincluded, it is important that Congress hasfinally passed a proposal that gives thosewho rely on the nation’s highways toconduct business a level of certainty aboutthe requirements they must meet and thatwill provide crucial funding for infrastruc-ture needs. However, the work to ensure wehave policies in place that will keep ournation’s infrastructure safe and efficient isfar from over, and United will continue tohelp ensure that agriculture’s transportationneeds are met.

Attending United’s Washington PublicPolicy Conference, inWashington D.C., October1-3, is a great way to engage with federal poli-cymakers on transportation, food safety, laborand other industry priorities. Visit United-Fresh.org to learn more.

8 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

By Julie Manes, Director of Government RelationsUnited Fresh Produce Association

Grapevine.qxd:Layout 1 7/31/12 12:40 PM Page 1

Page 9: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

POM Wonderful.qxd:Ad 7/27/12 5:07 PM Page 1

Page 10: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

There are two ways of approaching theidea of combining the ProduceMarketing Association (PMA) and the

United Fresh Produce Association (United).One approach is to see each association as anindividual entity “owned” by organizationsthat happen to bemembers today. In this view,the board of each association has a responsi-bility to its members similar to the fiduciaryresponsibilities that the board members of a

for-profit corporate board have to shareholders.Another way of approaching the issue is to view both associations as

“owned” by the broad-based produce industry, to see them both ascreations of the trade developed to serve the various needs of the tradeand subject to change or elimination when the needs change. Becausethe ownership of both associations in this view is identical, there are nofiduciary issues, and the sole question is how the industry wishes toarrange its affairs.The notion that the associa-

tions have different ownerships isgiven credence by the fact thatPMAhas over 1,500members thatare not members of United. Itseems a strong point, but, uponexamination, may say less thanone would think. A substantialportion of the membership ofPMA comes from companies that exhibit and/or attend itsmany events,especially Fresh Summit. There are significant discounts offered tomembers for participating in these events and benefits given tomembersin terms of badge recognition, etc.These discounts and benefits certainlylead people to join, but whether they actually represent an emotionalbond to a membership organization is not clear.The focus with which one views this issue is crucial. If you view the

associations as separate entities with separate agendas and ownership, itis hard to build a strategic case forwhyPMAwouldwant to“own”United.It is almost impossible to build a case that PMA should change in anysubstantial way tomake that happen.After all, from a financial perspec-tive, at least, PMA is the more successful association, with substantialassets and a business model that produces continuing surpluses.On the other hand, if one views the two associations as sharing a

commonownership,onewould be hard-pressed to claim that if the tradewas starting with a blank sheet of paper, it would choose to organize itscommunal affairs in thisway.After all,United’s primary function is essen-tial: It advocates for the industry in the corridors of power inWashington,DC, yet its funding for that mission is thin and not fully reliable, as thecommunal resources of the industry flow through PMA’s Fresh Summit.It is this difference of visions that has thwarted merger attempts fordecades, including,most recently, the collapse in July of the talks focusedonmerger which had begun 18months previously.Arranging a merger between two wholly owned subsidiaries of the

same “produce corporation” is not very hard. Sure there are occasionalissues, say the PACATrust orNAFTA,onwhich different segments of the

industry have different perspectives, so the grower/shippers may needtheir own small and focused association—perhaps some kind of leagueof state and regional grower groups— tohandle these issues.This iswhatthe big terminal market wholesalers did in creating the National Associ-ation of Perishable Agricultural Receivers (NAPAR). The wholesalersrecognized that any large vertical produce association would never givethem representation on certain key issues where their interests divergefrom those of the overall trade. Still, these issues are few and far betweenand, for the most part, it is one industry, and one association can easilybe envisioned and arranged.Yet every effort at combining the associations collapses. The recent

talks fell apart, after 18months of bridging every gap,nominally over theissue of whoought to be theCEO.PMA insisted its CEO leadwhatwouldhave been a newly created single association. United was willing to passthat responsibility to the new board, aware that as the new board wouldbe composed of 50 percent of members from each of the prior associa-tions, United’s board would, if unified,maintain the ability to block any

CEO choice.This is, of course, silly. Execu-

tives retire, get new jobs, passaway… the notion that creating awhole new association and elimi-nating two existing associations is agreat ideawith lots of upside for theindustry but can be allowed tocollapse because of a personnelissue simply doesn’t make sense.

Except, in this case, itmakes perfect sense.Themerger talks produced an“agreement” that was acceptable to all parties because it avoidedmakingany tough decisions. It never prioritized one association’s initiatives overanother. It left staffing decisions – and in these arenas, staff and policyare often synonyms – to the new CEO. So both United and PMA parti-sans could envision this working. One could see the new association asPMAwith aWashington,DCoffice and an increased focus onDC repre-sentation. Or one could see the new association as United with a moresophisticated governance structure,more networking activities and a lotmore money.So the key became the CEO. His actions and his staffing decisions

would very quickly define the new association. Because the shape of thenew association hadnot been defined by the negotiations, each side knewthat choosing theCEOof the other associationwould cause them to losethe association they hoped to create. Thus the talks reached an impasse.Are the efforts to merge dead? Is there a chance they will be revived

quickly? The industry – with staff and travel and consultants – spentover amillion dollars on this effort.Was it all for naught? Leadership onthis issue won’t come from the association CEOs. It probably won’tcome from the association boards. Both are too close to the situationand too wounded from the breakdown of the talks. The question iswhether the leaders of large companies of the industry are willing torouse themselves and assert that they own these entities and they wantthem consolidated.There is no question that these leaders care about thesituation, but whether they care enough to make it happen is still anopen question. pb

10 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

IS UNITED/PMA MERGER DEAD?

THE FRUITS OF THOUGHT

By James PrevorPresident & Editor-in-Chief

Are the leaders of large companies ofthe industry willing to rouse themselvesand assert that they own these entities

and want them consolidated?

Jim's Column.qxd:Layout 1 8/8/12 9:43 AM Page 1

Page 11: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Mann Packing.qxd:Ad 7/27/12 4:57 PM Page 1

Page 12: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

AUGUST15-17, 2012TEXAS PRODUCE ASSOCIATION CONVENTIONConference Venue:GrandHyatt Hotel,SanAntonio,TXConference Management: Texas ProduceAssociationPhone: 956-581-8632 • Fax: 956-584-3307Email: [email protected]:www.texasproduceassociation.com

August 16-18, 2012APPLE CROP OUTLOOKConference Venue:Ritz Carlton,Chicago, ILConference Management:U.S.AppleAssociationPhone: 703-442-8850 • Fax: 703-790-0845Email: [email protected]: www.usapple.org

August 22- 25, 2012AMHPAC 2012Conference Venue: Presidente Intercontinental Hotel,Jalisco,MexicoConference Management: Mexican Association ofProtected Horticulture,Guadalajara, Jalisco,MexicoPhone: (33) 38-23-36-52Website:www.amhpac.org

SEPTEMBER4 - 9, 2012JOINT TOMATO CONFERENCE 201236thAnnual Joint Tomato ConferenceConference Venue:Ritz Carlton,Naples,FLConference Management: Florida Tomato Committee,Maitland,FLPhone: 407-660-1949 • Fax: 407-660-1656Email: [email protected]:www.floridatomatoes.org

September 18 - 21, 2012FFVA CONVENTION 2012FFVA 69thAnnual Convention 2011Conference Venue:Ritz Carlton,Naples,FLConference Management: Florida Fruit & VegetableAssociation,Maitland,FLPhone: 321-214-5200 • Fax: 321-214-0210Email: [email protected]:www.ffva.com

September 20 - 22, 2012SEPC FALL CONFERENCE 20122012Annual Fall ConferenceConference Venue:Grove Park Inn,Asheville,NCConference Management: Southeast ProduceCouncil Inc.,East Ellijay,GAPhone: 813-633-5556 • Fax: 813-653-4479Email: [email protected]:www.seproducecouncil.com

September 22-24, 2012FLORIDA RESTAURANT & LODGING SHOW 2012Conference Venue: Orange County Convention Center,Orlando,FLConference Management:ReedExhibitions,Norwalk,CTPhone: 203-840-5910 • Fax: 203-840-9910Email: [email protected]:www.flrestaurantandlodgingshow.com

September 24 - 25, 2012AMERICAS FOOD AND BEVERAGE SHOW 201216thAnnualAmericas Food and Beverage ShowConference Venue: Miami Beach Convention Center,Miami,FLConference Management: World Trade Center Miami,Miami,FLPhone: 305-871-7910 • Fax: 305-871-7904Email: [email protected]:www.americasfoodandbeverage.com

F O RWA R D T H I N K I N G

To submit events to our Forward Thinking calendar,please email [email protected]

OCTOBER1 - 3, 2012WASHINGTON PUBLIC POLICY 2012The produce industry’smost powerful public policy eventConference Venue:Hyatt Regency Capitol Hill,Washington D.C.Conference Management:United Fresh ProduceAssociation,Washington D.C.Phone: 202-303-3400 • Fax: 202-303-3433Email: [email protected]:www.unitedfresh.org

October 14 - 17, 2012SIAL PARIS 2012The 25th global international food products exhibitionConference Venue: Paris NordVillepinte - Pac desExpositions,Paris,FranceConference Management: IMEX Management Inc.,Charlotte,NCPhone: 704-365-0041 • Fax: 704-365-8426Email: [email protected]:www.imexmgmt.com

October 26 - 28, 2012PMA FRESH SUMMIT 2012Conference Venue:AnaheimConvention Center,Anaheim,CAConference Management: ProduceMarketingAssociation,Newark,DEPhone: 302-738-7100 • Fax: 302-731-2409Email: [email protected]:www.pma.com

NOVEMBER8 - 10, 201244TH NOGALES PRODUCE CONVENTIONAND GOLF TOURNAMENTConference Venue: Rio Rico Resort & Tubac Golf Resort,Rio Rico,AZConference Management: Fresh Produce Association oftheAmericas,Nogales,AZPhone: (520) 287-2707 • Fax: (520) 287-2948Email: freshfrommexico.comWebsite:www.freshfrommexico.com

November 10 -13, 2012NTERNATIONAL HOTEL, MOTEL ANDRESTAURANT SHOWConference Venue: Javits Center,NewYork,NYConference Management:GLM,White Plains,NYPhone: 914-421-3346 • Fax: 914-948-6197Email: [email protected]:www.ihmrs.com

November 11 -14, 2012WESTERN GROWERS ANNUAL MEETING 2012Conference Venue: Fairmont Resort,Scottsdale,AZConference Management:Western GrowersAssociation,Newport Beach,CAPhone: 949-863-1000 • Fax: 949-863-9028Email: [email protected]:www.wga.com

DECEMBER4-6, 2012NEW YORK PRODUCE SHOW AND CONFERENCEThe 3rd Annual iteration of Celebrating Fresh! in themagical city of Manhattan.Conference Venue: Pier 94,NewYork,NYConference Management: PRODUCE BUSINESS,Boca Raton,FLPhone: 561-994-1118 • Fax: 561-994-1610Email: [email protected]:www.nyproduceshow.com

Trade Calendar.qxd:Layout 1 8/1/12 12:02 PM Page 1

Page 13: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

NYPS H 2012_3.qxd:Ad 7/27/12 5:00 PM Page 1

Page 14: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

14 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

PRODUCE WATCH

Produce Watch is a regular feature of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry,corporate and personal milestones and available literature, along with a color photo, slide or transparency to: Managing Editor,

PRODUCE BUSINESS, P.O. Box 810425, Boca Raton, FL 33481-0425, or e-mail us at [email protected]

COLORFUL HARVESTSALINAS, CAColorful Harvestwelcomes Jeremy Burrisas the new vice presidentfor sales and sourcing forits Florida division. Theaddition of Burris is thelatest in a series ofmoves to expand a verysuccessful Floridaproduce operation. Burrisbrings to the positionover 10 years of straw-berry industry experienceas the former vice presi-dent of sales for WishFarms of Florida.

L&M PARTNERS WITH HIGH COUNTRYL&M Companies Inc., Raleigh, NC,announces its partnership with Idahopotato grower-shipper, High Country.Located in Rexburg, ID, High Country isone of Idaho’s largest Russet potatopackers, currently shipping about 1.5million sacks annually. By teaming upwith High Country, L&M becomes a solidindustry player in Russet potatoes andcompletes its year-round program.

TRANSITIONS

DUDA FARMFRESH FOODSOVIEDO, FLDuda Farm Fresh Foodswelcomes SusanNoritake to the team asthe director of fresh-cutsales. Noritake will beresponsible for leadingthe entire sales divisionand will be taking thelead on developingsales programs andpromotions, maintainingstrong relationships withkey customers, buildingnew accounts andenhancing the overallperformance of thefresh-cut sales teamthrough improved salesprocesses and profes-sional development.

COLUMBIAMARKETINGINTERNATIONAL CORP.WENATCHEE, WAColumbia MarketingInternational has hiredKatharine Grove to themarketing team.Katharine brings morethan seven years ofprofessional marketingexperience. She will beresponsible for CMI’sonline content,including social media,collaboration onmarketing materials andattending industry tradeshows. She will alsospearhead research thatwill benefit thecompany’s customersmoving forward.

FRESH TEXALAMO, TXChris Hoffman joins Fresh Tex after atwo-year position handling outside salesfor Glaziers. He will be tasked withkeeping an account for the increasedlime customers and focusing on growingthe lime base with increased value offer-ings of thecompany’s bagprogramsand promo-tions.Hoffman isa BusinessManage-ment grad-uate ofTexas TechUniversity.

Armando Palacios arrives at Fresh Texfollowing a sales position with AztecaMilling. Palacios brings a wide range ofexperience with ethnic products and howthey work within a market. He will befocusing on building the company’s chilipepper category and other ethnic itemsout of Mexico. Palacios is fully bilingualin English and Spanish, and thus has theability to significantly expand Fresh Tex’scustomer base throughout the market.

THE OPPENHEIMERGROUPVANCOUVER, B.C.CANADAJulia Hashim recently joinedthe Oppenheimer team asthe new business develop-ment representative in thecompany’s Newark, DE,office. She will be focusingon executing impactfulpromotions for primarybrands, providing solutionsfor retailers, and creating

interest in and excitement for each of Oppenheimer’skey categories at retail. Before coming to Oppen-heimer, Hashim worked as a business operationsassociate for TEKsystems in Hanover, MD, where shewas responsible for customer service and financialforecasting and analysis.

ANNOUNCEMENT

Watch.qxd:Layout 1 7/31/12 11:15 AM Page 1

Page 15: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Baero.qxd:. 7/27/12 4:39 PM Page 1

Page 16: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

ANNOUNCEMENTSPURE HOT HOUSE FOODSDOES IT AGAINFor the third time in a row, Pure HotHouse Foods took home the “SpecialtyPepper Award” with its Aurora Bites™sweet mini peppers at the PerfectPepper Competition, put on by REACHInternational in Leamington, Ontario, Canada, over the weekend of June 15-17. Pure Hot HouseFoods is a year-round grower, shipper and marketer of a full line of greenhouse-grown productsand value-added fresh-cut Grillers and Roasters.

PROGRESO PRODUCE EXPANDS PRODUCT MIX WITH PERUVIAN AVOCADOSProgreso Produce, Boerne, TX, has expanded its product mix toinclude avocados from Peru. Progreso has been importing Mexicanavocados for over a year and offers a year-roundMexican avocado program. The addition of Peru-vian avocados fills a short 12-week marketwindow and is a complement to the company’sMexican program. In addition to Peruvianavocados, Mexican avocados will also be availableand ripening programs can be set up to customerspecifications.

READY PAC FOODS OFFERS DISNEY-THEMEDKIDS MEALS IN TIME FOR BACK-TO-SCHOOLReady Pac Foods Inc., Irwindale, CA, in conjunctionwith Disney Consumer Products, is announcing anew line of Disney-themed Mini Meal and Saladsformulated for kids six to 12 under the Ready PacCool Cuts® brand. Ready Pac is thrilled to provide aselection of great tasting foods that meet the strictDisney nutrition guidelines and encourage kids toeat better by making nutritional foods fun andappealing. According to the company, the meals arealso a great value when compared to lunches andsnacks purchased at restaurants for kids.

On page 131 of theJuly issue of PRODUCEBUSINESS, PaulAuerbach ofMaurice A.Auerbach Inc. wasmisquoted. AlanNapolitano worksat Vision ImportGroup in RiverEdge, NJ. Weregret the error.

NATURIPE FARMS LAUNCHES VERYBERRY SUMMER TRIVIA CONTESTNaturipe Farms, Estero, FL, officially launched its firstVery Berry Summer Trivia contest on its Facebook pagewith the intent of spreading awareness about thehealth benefits of fresh berries. Trivia questions will bebased on nutritional and historic fun facts about straw-berries, blueberries, raspberries and blackberries foundon Naturipe’s website. Every Monday, one prize of fivecoupons redeemable for free packages of fresh Naturipeberries and a $50 American Express gift card will beawarded to a randomly selected user with the correctanswer. The contest ends on August 20.

MARKET FRESH PRODUCEEXPANDS TOMATO LINEMarket Fresh Produce LLC, Nixa,MO, expands its packaged tomatoline, with the addition of the two-pack clamshell. This design allowsMarket Fresh customers to offerconsumers large slicing tomatoes,either hothouse or vine-ripened, ata very competitive price point.Retail feedback is claimed to bepositive as well since retailers seea reduction in shrink with this newproduct.

AMHPAC HOLDS FIFTH BUSINESSAND TECHNICAL CONVENTIONThis year, the Mexican Association of ProtectedHorticulture (AMHPAC) will hold its fifth Businessand Technical Convention in Guadalajara, Jalisco,Mexico, from August 22-25th. With the purpose ofanalyzing and discussing the challenges faced bythe protected agriculture sector in North America,this event will bring more than 500 local and globalindustry leaders together.

16 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

NEW PRODUCTS

CORRECTION

SOUTH AFRICAN SUMMER CITRUSARRIVES IN U.S. MARKETS NATIONWIDESouth African summer citrus’ Clementines andNavel oranges have arrived from South Africa.The fruit will be distributed to grocery and otherretail stores across the United States. Consumerdemand for South African summer citrus hasbeen increasing, as the citrus is recognized as asweet, delicious and nutritious staple to summermenus and meals. Growers expect consumerswill be especially pleased with the taste, textureand overall eating quality of this season’s crop,which continues to October.

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

Watch.qxd:Layout 1 7/31/12 11:15 AM Page 2

Page 17: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

a convenient hand-held tool to helpyour floral business bottom line

FLORAL BUSINESS is . . .

· a new magazine concept exclusivelydevoted to supermarket floralexecutives

· a magazine addressing marketing,merchandising, management andprocurement concerns

· a magazine providing importanthow-to information on topics suchas pricing, labor, space-to-sales,seasonal promotions, care andhandling and value-added services

· a magazine that seeks answers fromwithin the industry and reaches outto the retailers themselves – as wellas leading floral marketers – forsolutions

· a magazine that is easy-to-read andpass along – all the way down to thestore-level floral managers

FLORAL BUSINESS – your tool kit to prosperity

Catch it Quarterly and online Every Day!Quarterly: March, June, September and December

Available online every day at www.FloralBusinessMagazine.com

PBH Floral.qxd:Ad 7/27/12 5:02 PM Page 1

Page 18: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

The average U.S. family spends$6,129 a year on food, accountingfor 12.7 percent of average total

expenditures of just over $48,000, accord-ing to Demographics of Food Spendingfrom The Food Institute, a research andtrade association. The publication looked atexpenditure data from the Bureau of LaborStatistics as it has done for the past 15 years— the latest from surveys conducted in2010. Those food expenditures are downfrom prior-year levels, however, as the so-called “Great Recession” was in full swingat that time and frugality started to becomea common term in the consumer vocabu-lary, and continues to be today.

But that should be put into perspectiveas The Food Institute reminds its members,compared with other nations across theglobe, U.S. families still enjoy the lowest costfood. In a ranking of food expenditures as apercent of disposable income by nation, theU.S. consistently leads the pack with thesmallest share, lately followed by Singaporeand the United Kingdom. And if you arewondering, in Cameroon, nearly one-half offamilies’ disposable income goes to food.

Unfortunately for the food industry —from farm to fork — it has felt the impactof the Great Recession even more than thetotal expenditure line. While the totaldropped 2 percent from the prior year, foodexpenditures during 2010 dropped nearly 4percent— a pretty big hit for everyone fromfarmers to retailers.

Looking at it another way, food expendi-ture cutbacks accounted for 25 percent ofthe overall decline in average annual expen-ditures in 2010, even though onlyone-eighth of the total is spent on food.

Fortunately, expenditures for fruits andvegetables bucked the downward overalltrend for food spending in 2010, rising 3.5percent from the prior year to $656, withfresh fruit and vegetable expenditures ris-ing 3 percent to $442, while processed rose4 percent to $237. And, while the averageconsumer spent $1 more on fresh vegeta-bles compared to the prior year, $14 morewas spent on processed vegetables — sug-

RESEARCHPERSPECTIVE

18 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

Convenience Driving Increase In ProcessedFruit And Vegetable ExpendituresBY BRIAN TODD, PRESIDENT, THE FOOD INSTITUTE

The Food Institute, in Upper Saddle River, NJ,strives to be the best “single source” for cur-rent, timely and relevant information about thefood industry from “farm to fork.” The FoodInstitute delivers information through multiplemedia so that industry professionals worldwidecan tap in when and how they choose. Formore information, go to www.foodinstitute.com

on fresh fruit and 1.2 percent more on freshvegetables than consumers in the Northeast,those Northeastern consumers aged 25 to34 spent 0.5 percent more of their totalbudget on fruits and vegetables than theirWestern counterparts.

Looking at expenditures by householdsize, the convenience of processed fruits andvegetables is borne out by the data show-ing that single-parent households with atleast one child under 18 years old spend 40percent of their fruit and vegetable expen-ditures on processed fruits and vegetables— more than any other such demographicgroup. For “couples only” fully two-thirds oftheir expenditures for fruits and vegetablesgo to fresh fruits and vegetables, however.

Researchers at The Food Institute alsopoint out the wide fluctuation in fresh fruitand vegetable pricing has contributed to thesteady increase in consumer expenditures forprocessed foods. In the Institute’s Retail andWholesale Food Price Review 2012, the asso-ciation reported that processed fruit andvegetable prices increased 3.7 percent at thewholesale level in 2011, comparedwith a 2.3percent increase in consumer prices. And onamonth-to-month basis, processed vegetableprices change little. But that’s not the case forfresh fruit and vegetable prices, which fluctu-ate dramatically frommonth-to-month.

gesting that the frugal consumer will pur-chase the product with the longer shelf-lifeand greater convenience.

The Food Institute notes that ease of uselikely played a large role in that increase inprocessed fruits and vegetables, due specif-ically to the popularity of frozen steammicrowave vegetable packs that havebecome a staple in the freezer case for bothbrands and private labels, and now accountfor a large portion of frozen vegetable sales.

Another factor that may be aiding thetrend toward greater processed vegetablesales is an expanding number of freezercases beyond the traditional supermarketinto alternative retailers such as chain drugstores and dollar stores, making those prod-ucts more readily available to consumers.Just consider that the number of U.S. dollarstores has now surpassed 22,000 — evenmore than the number of chain drug stores.And, The Food Institute projects that num-ber will top 33,000 by the end of the currentdecade — many with freezer cases, andmajor players looking to expand the num-ber of freezer cases in their stores.

Looking back five years from 2010, TheFood Institute found that processed vegetableexpenditures in that period rose an impressive30 percent, far outpacing the 5 percentgrowth in processed fruits, the 9 percentgrowth in fresh vegetables and even the sub-stantial 19 percent gain in fresh fruits.

And while the data in the Demographicsreport may confirm some assumptions thatconsumers in theWestern region of the U.S.spent 2.3 percent more of their food budget

Perspective & Analysis.qxd:Layout 1 8/7/12 12:39 PM Page 1

Page 19: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

One way research can help us dobusiness better is by focusing ourefforts on inflexion points or areas

in which our efforts can make a difference.This piece of research by The Food Institutepoints to three such points:

1) By emphasizing the percentage ofincome spent on food in general and foodat home in particular, this research leads toquestions about the utility of focusing onprice-reduction as a key component ofincreasing demand.

2) By focusing on the question of relativegrowth of fresh versus processed fruits andvegetables, this research leads to a broaderassessment of competition and raises thequestion of whether fresh product develop-ment and fresh marketing are really hittingthe nail on the head. It even raises into ques-tion whether industry institutions, such asthe Fruits & Veggies — More Matters initia-tive, which promotes fresh, frozen, driedand 100% juice, help or hurt the freshindustry by building overall demand or bysharing the fresh halo of healthfulness withcanned and frozen product.

3) In analyzing expenditures for produceoverall and fresh produce particularly bygeography, income and family size, we aremoved to question our product develop-ment and marketing to see if we areeffectively targeting all the available marketopportunities.

If we leave foodservice aside for amoment and just look at expenditures forfood consumed at home, we see the latestfigures indicating that just 7.5% of familyexpenditures goes for food consumed athome. We don’t have separate fresh pro-duce numbers but, roughly speaking, about10% of a supermarket’s sales go to the pro-duce department. So we are talking aboutaround 0.75% of family expenditures goingfor fresh produce — and that numberincludes salad dressings and other ancillaryitems sold in the produce department.

Now, of course, these are broad-basedstatistics. Individual families are in all kindsof circumstances based on income and psy-chographics. There are probably some

COMMENTS &ANALYSIS

Can Fresh Overcome FrozenAnd Canned Advantages?BY JIM PREVOR, EDITOR-IN-CHIEF, PRODUCE BUSINESS

impoverished vegans who only will eatorganic produce but might spendmore thanhalf of their food budget on fresh produce,and there may be some carnivore-centric bil-lionaires who spend heavily on lobster, filetmignon and fine wines — for whom pro-duce is infinitesimal as a percentage of theirfood expenditures... let alone their totalexpenditures.

Still, on average, if something costs0.75% of the family’s total expenditures, itraises into question whether price reduc-tions are a particularly effective way ofboosting demand.

Perhaps the real drivers of relative sales iscompetition with frozen and canned. Thecompetitive advantages these products haveare easy to identify, but less spoilage usuallybubbles to the top of the list.

In today’s hectic world, few families areas predictable in their eating habits as inOzzie and Harriett. That vision of life —where the man finishes work at 5:00 everyday and comes home for dinner made bythe wife who has been focused on makingit, is no longer reality. Today families are tornin more ways; work schedules are less pre-dictable, sports and activities pull children onunpredictable schedules, and workingwomen have schedules of their own.

So perishable purchases increase inspoilage risk. Maybe that long-planned din-ner gets postponed when Mom has to runoff on a business trip, Junior’s game goesinto overtime and the family hits fast foodfor dinner, or Dad has a pizza delivered tothe office as he has to work late. All thismeans that the fresh produce purchasedwith the intent to make dinner that nightmay go to waste.

Of course, the lack of risk of spoilagemakes it easy to keep reserves, which justmight boost consumption. So if theteenager brings six friends over and youwant to whip up smoothies for all — afreezer full of frozen fruit is going to makethat unscheduled event into an occasion formore produce consumption. Otherwise, youmight break out Coke and Chips.

How R&D and marketing can effectively

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 19

This research suggeststhat another shift — inbreeding, packaging,fresh-cut R&D andindustrymarketing —may be called for.

address this competitive environment isunclear. But fresh is generally perceived asthe optimum product, so this raises thequestion: Is it really a “win” for fresh pro-duce to allow for joint promotions withmore processed product as the Fruit & Veg-gies — More Matters program does bypromoting fresh, frozen, canned, dried and100% juice products?

The commodity heritage of the fresh pro-duce industry has led to a focus oncommodity concerns. Common critiques ofthis condition include an excessive focus onyields and shipping abilities as opposed toflavor. The industry, though, is increasinglyaware of these concerns and the breedingfocus has shifted. This research suggests thatanother shift — in breeding, packaging,fresh-cut R&D and industry marketing —may be called for.

Instead of just focusing on flavor as anabstract, perhaps there would be a substan-tial upside to focusing in on characteristicsthat would appeal to specific segments ofthe population. This might involve differentflavor profiles, packaging or marketing toappeal to different ethnicities, incomegroups, family sizes, geographies, etc.

These are complicated questions andhave complicated answers. Good researchcan help provide both an impetus to askingthe right questions and clues to what theright answers might be. This piece from TheFood Institute can’t help but provide fodderfor such thoughts.

Perspective & Analysis.qxd:Layout 1 8/7/12 12:41 PM Page 2

Page 20: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

W ith all the sturm and drang over the issue of the mergerbetween United and PMA, it is worth a moment toconsider the role of buying organizations and the style

of association board members in the industry discussions.The thrust toward a merger has always been driven by vendors

— by grower-shippers. Structurally, this is because it is United’sadvocacy work that they see as the most important job of a tradeassociation, and they would like to find a way to use the proceedsfrom Fresh Summit to fund these efforts.

Buyers Versus SellersRetailers and foodservice distributors/operators have their own

associations—namely the FoodMarketing Institute (FMI), theNationalRestaurantAssociation (NRA) andthe International FoodserviceDistributors Association (IFDA)— to defend their interests inWashington, D.C., and so theyrely on one or the other producetradeassociationmore topromotesupply chain efficiencies andprovidenetworkingopportunities.The buyer groups supportadvocacy for the grower supplybase but don’t worry somuch about the advocacy portion.

Emotionally, the drive to merge comes from grower-shippersbecause they are the ones who write the checks. Whether payinghigher dues rates, exhibiting, doing sponsorships or donating toone of the association’s foundations, this is where the moneytypically comes from. Indeed, many times when representativesfrom buying organizations have made comments that differ fromwhat some of the big grower-shipper advocates of merger believe,the grower-shippers will dismiss the comments, pointing out that“XX doesn’t write any checks.”

There are many people bitter over the preferential treatment thatbuyers get in a membership organization. If everyone is an equalmember with an equal vote, it is hard to justify why one class ofmember should get into events free or at a reduced price or have alower cost dues structure.

Of course, these ideas all make perfect sense, except they defycommercial reality.

In business, it can often be difficult to really ascertain the sourceof the profits. Let us take, for example, the PMA FoodserviceConference. This is a successful event, and if you look for the sourceof the profits in the checks received, you would clearly say that it isthe grower-shippers who are the key ingredient in the profitabilityof the event.

All those booths and sponsorships bring in the big bucks andpay for the event with a surplus left over for PMA.

Of course, stopping the analysis at the checks begs the questionof why people send in those checks. For that, you have to credit thebuyers. Sysco, US Foods, Pro*Act andMarkon all hold bigmeetings

20 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

A Closer Look At The DynamicsThat Led To The Collapse Of TheUnited/PMA MergerFROM JIM PREVOR’S PERISHABLE PUNDIT 08.02.2012

before or after the show and bring hundreds of people to the event.Add in the individual operators and distributors who attend and youhave an explanation for why the grower-shippers support the event.

So the checks come from the sellers but the value creation comesfrom the buyers.

Of course, the definition of “buyer” has become hazy. WhenLisa McNeece, Vice President of Foodservice and Industrial Sales atGrimmway Farms, runs into Lorri Koster, Vice President ofMarketing and Co-Chairman of the Board at Mann Packing, at thefoodservice conference, Lisa smiles. This could be because they areold friends, women pioneers in the business, compatriots inproduction ag out in California, but it could also be because MannPacking, conventionally seen as a seller, buys a lot of carrots from

Grimmway to put in its variousvegetable mixes.

This is the dynamic JohnPandol was referring to in theletter he wrote recently when hesaid that he found as an exhibitorat various trade shows that hewas paying to be a captive buyer.

This whole dynamic adds tothe frustration because shippersand processors get charged as

vendors whether or not they also buy. Indeed, because registrationfees are typically set by business classification, not job classification,even the actual buyers from grower-shippers wind up paying thehigher rate.

Of course, regardless of the frustration vendors may have withthe dues and rate differentials for buyers given by the associations,sellers still need the buyers.

This makes for successful events and, also, complicatesenormously the merger issue. If PMA and United were bothhorizontal trade associations serving just grower-shippers, themerger would have happened long ago. Five big guys in a roomwould have decided they didn’t want to spend their money thisway and that would be that.

All this elaborate process is really a kind of Kabuki dance in whichthe different sectors of the industry try and interact, expressing theirpreferences, without giving too much offense.

One reason the talks looked like they would succeed when theyfirst began is because United’s board had changed. Reggie Griffin,in particular, had changed the dynamic. Reggie, a former PMAboard member, knew PMA well. As Corporate VP of Produce andFloral Merchandising and Procurement at The Kroger Co., he stoodat the very pinnacle of produce procurement in America.

It is not unreasonable to think that the PMA board memberswould have had a little trouble delivering the ultimatum it ultimatelydid to United if Reggie had stayed in his Kroger position. If PMAhad still delivered such a strong statement, explaining it would endthe talks if United’s board didn’t agree with PMA’s position on theCEO, then a few well-placed calls to the big grower-shippers on

If PMA and United were bothhorizontal trade associationsserving just grower-shippers,

the merger would havehappened long ago.

Pundit.qxd:Layout 1 8/8/12 1:58 PM Page 1

Page 21: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

the PMA board and even to his retail peers on the PMA boardwould have made an extension of the talks much more likely.

When Reggie left his position back in October of 2011, a lot ofheft left the United negotiating team. PMA shrewdly included inits task force both Mike Agostini, Senior Director of Produce/Floralat Wal-Mart, and Rich Dachman, Vice President of Produce atSysco, representing the largest retail buyer of produce and thelargest foodservice buyer of produce. Very little can happen in theindustry with the active opposition of those two organizations.

Beyond that, it is also very hard for grower-shippers and importersto take strong stands in active opposition to these players. So, thoughthere has been talk of doing petitions and sending letters to theboards demanding action — we were even asked to draft one —fear of alienating these important customers has stayed the hand.

There clearly is a disconnect between the broader produce industry,which seems to find the present state of affairs bizarre, disgusting andinexcusable, and the actions of the boards, which don’t seemmotivated to overcome their differences in the choice of CEO.

Consensus-builders Versus NonconformistsSome of that difference is properly understood as this dance

between buyers and sellers, but much of it is also explained as amatter of personal style — in this case, the kind of style that leadspeople to want to serve on boards or leads companies to want toassign particular employees to boards. Although there areexceptions, almost by definition, the ones who enjoy this type ofwork and would be good at it are those who have a kind ofconsensus-building, consultative style that is at odds with thetemperament of many in the trade.

Many, probably most of the people who have spoken to usabout this subject, respond with profanities and say fire both Bryanand Tom and hire a new guy. To them, it is obvious: You have twowell paid guys who would like to keep their jobs and their friendswho are more concerned with protecting their friends than withtheir responsibility to a more anonymous industry.

Even suggestions that we havemade— such as that the rejectedCEO should be treated generously with extra severance or aconsulting agreement— have been generally greeted with hostility.“Why?” we were asked. “The guy has a contract; it has aseverance clause negotiated in case the industry wants to get rid ofthe guy. Why should we give more? You only say that because the

cost will be divided between a thousand companies. None of thesebig shots would pay extra if it was their money.”

There is a lot of truth in all this. But actually these types of thingsare common in large businesses. You pay money to smooth thingsover, to buy silence, friendship, avoid lawsuits, to keep employeesfrom competitors and a myriad of other reasons.

We proposed it not only because we thought rewarding thelongtime service of these executives was appropriate, but alsobecause we thought that the board members who were close tothese executives needed a consolation prize to give out if they hadto pass on the bad news. Of course, if one is going to pass outmoney, you hope to do it in the most productive way possible, sayreally using someone as a consultant.

Yet the consensus-building model of leadership is problematic.It is, by far, the most effective technique. It builds support in anorganization for what is coming next, and that very support makespossible what is coming next.

Sitting through meetings, hiring consultants, building a base ofsupport for what you hope to accomplish — all this is crucial.

Indeed, part of the problem is that it was not carried out broadlyenough. The consensus-building approach was not carried outthrough the industry. So there is no industry consensus on the “fourcornerstones” or the priorities among those “cornerstones” or theright board composition or how a CEO should be selected.

Because no industry consensus for this plan was built as the plandeveloped, there was relatively little reaction when it collapsed. Ifconsensus had been developed — at a grassroots level — the planwould have never collapsed because a thousand companies wouldhave resigned membership if it had.

On the other hand, at the executive level, one has to say thatthis process also shows the limits of the consensus-buildingapproach. You need to build the consensus that one association isoptimal — and this process did that. Once that decision is reached,however, you need to act. You need to fire people, closedepartments, eliminate functions, slaughter the sacred cows, allactions that will offend many and cause cries of unfairness — allactions for which leadership will be vilified.

Think of our industry representatives on the boards as likeMoses: they were the leaders perfectly suited to build the consensusthat brought the trade to the brink of the Promised Land, but thesame traits meant that they were fated not to lead the entrance tothe land itself.

That is what Steve Scaroni, Owner of Valley Harvesting &Packing, Inc./Vegpacker de Mexico, was alluding to in his letterwhen he suggested putting Rick Antle in charge because Stevedidn’t think we needed a consensus-builder; we needed somethingtotally different for the next stage of the journey.

The Jews were led into the Promised Land by Joshua. He wasone of the 12 spies that Moses had ordered to check out thePromised Land. Although the spies reported back with a consensusthat the land was fruitful, 10 of the 12 spies said the occupants ofthe land were too powerful and that the Jews should not enter. Thisso enraged God that His chosen people did not have faith in hispromise that he sent the Jews back to wander for another 40 years.He said that all men over 40 had to die off before the Jews couldonce again approach the Promised Land. The only two spared wereJoshua and Caleb, the two spies who had shown faith.

So now we stand with our two task forces. Like Moses, theyhave brought us to the brink. Will we also have a shortfall of faithand will we too be condemned to walk the wilderness for 40 yearsbefore we make it happen? And who shall be our Joshua?

FROM JIM PREVOR’S PERISHABLE PUNDIT 08.02.2012

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 21

Because no industryconsensus for this plan wasbuilt as the plan developed,there was relatively little

reaction when it collapsed.If consensus had been

developed — at a grassrootslevel — the plan would have

never collapsed becausea thousand companieswould have resignedmembership if it had.

Pundit.qxd:Layout 1 8/8/12 1:58 PM Page 2

Page 22: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Congratulations to the following companies thathave won PRODUCE BUSINESS'24th Annual Marketing Excellence Awards:

The Avocado Producers AndExporting Packers Association ofMichoacan (APEAM)California Avocado CommissionColumbia Marketing International Corp.Concord FoodsCrunch PacIdaho Potato CommissionNational Mango Board

Network for a Healthy California/Harvest of the MonthOcean Mist FarmsSage Fruit Co.Stemilt Growers LLCSunkist GrowersSunlight InternationalUniversity of Massachusetts, AmherstVidalia Onion Committee

22 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

The Avocado Producers AndExporting Packers Association of

Michoacan (APEAM)Los Angeles, CA

Avocados from MexicoPMA Promotion

OBJECTIVES: To secure 195,000 mediaimpressions in key trade publications; to build 40new relationships with retailers and wholesalersand strengthen existing relationships; to educatethe trade about the breadth of innovativemarketingprograms offered by Avocados from Mexico, inaddition to reaffirming the unique qualities thatmake Avocados from Mexico the U.S. categoryleader; to increase Avocados fromMexico's expo-

sure to the PMA Fresh Summit Expo.CAMPAIGN: Integrated Marketing Works, in

conjunctionwith its client, Avocados fromMexico,used a variety of tactics to boost the impact of thecompany's booth at the PMA Fresh Summit Expo.A number of traditional and nontraditional tacticswere used, including a celebrity chef appearanceby Roberto Santibanez, who offered signed freebooks to the first 100 people in line for autographs.There was also a model/actress who played therole of "Miss Ava Cado" available for photo ops.

Therewere several APEAM Industrymeetings,as well as scheduled and facilitated in-personmedia briefings. The booth itself was alsorevamped, allowing for a better flow of traffic andimproving its functionality. New cohesive graphics

were used throughout thebooth, including an extra-large light box in the center ofthe booth space displayingthe central theme of "LeadingThrough Innovation," and theaddition of an overhead logo sign thatcould be seen throughout the convention center.

RESULTS: PR efforts executed by IMW andAvocados From Mexico resulted in 261,669impressions, which exceeded their objective bymore than 37 percent. In addition, IMW met withnine reporters onsite and facilitated interviews atthe PMA booth. In addition, 40 new relationshipswere cultivated with retailers, and wholesaler atthe PMA Expo.

20 WELL ROUNDED CAMPAIGNS GARNER INDUSTRY RECOGNITION

24thAnnualMARKETING EXCELLENCEAWARDS

Marketing Excellence.qxd:Layout 1 8/8/12 4:36 PM Page 1

Page 23: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Sunlight.qxd:Ad 7/27/12 5:15 PM Page 1

Page 24: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

24 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

The Avocado Producers AndExporting Packers Association

of Michoacan (APEAM)Los Angeles, CA\

Avocados from MexicoSweepstakes with

DreamWorks Puss in Boots

OBJECTIVES: To generate buzz forAvocados from Mexico and increase brandawareness; to increase consumption ofAvocados from Mexico; to support retail salesand promotion of Avocados from Mexico.

CAMPAIGN: Working with IntegratedMarketing Works, Avocados From Mexicoplanned a consumer sweepstakes with Dream-Works’ Puss in Boots over the course of eightmonths. The sweepstakes was hosted throughthe Avocados From Mexico Facebook page.Prizes included one grand prize of $2,500 iCardGift Card, two second-place prizes of $500 iCardGift Cards and 500 third-place prizes of a pair ofmovie tickets. The sweepstakes was promotedthrough an integrated marketing campaignincluding online advertising, trade e-newslettersand various in-store POS materials.

RESULTS: Over 20,000 site visits to theAvocados from Mexico website pages wereachieved during the four-week promotion. Morethan 19 million consumers were reached viatargeted e-blasts, display ads and in-store POS.Coming in at 73 percent ahead of its goal,30,346 sweepstake entries were received. Inaddition, 4,115 total POS orders were receivedfor the Puss in Boots materials leading into thepromotional program in key sales markets forAvocados from Mexico.

The Avocado Producers AndExporting Packers Association

of Michoacan (APEAM)Los Angeles, CA

Avocados from Mexico“Wake Up a Winner!”

SweepstakesOBJECTIVE: To increase usage of Avocados

from Mexico for breakfast; to drive consumerengagement through a sweepstakes promotionon Facebook; to increase Facebook fan base.

CAMPAIGN: While avocado usage is typi-cally thought of for appetizers and entrees, theyare rarely used for breakfast. Avocados FromMexico wanted to educate consumers thatavocados are a great way to "power up" break-fast through simple and quick recipes. To do so,a Facebook sweepstakes ran from April 2 toMay 6, 2012. Daily prizes were awarded in theform of $200 grocery gift cards plus one finalgrand prize of a trip for two to a bed & breakfastin Napa Valley, CA. To further reinforce thebreakfast message at retail, Avocados fromMexico displayed shelf-talkers highlightingavocado spread on toast in over 1,000 stores.The promotion also used banner andmobile ads,blogger outreach, e-blasts and social mediaengagement.

RESULTS: The campaign's objective wasmet with 58 blog posts mentioning avocadosfor breakfast, reaching over 89,000 views. TheAvocados from Mexico Facebook fan baseincreasedwith a total of 14,570 new fans, a 182percent increase over goal.

California Avocado CommissionIrvine, CA

California AvocadoIn-Season Support

OBJECTIVE: To increase demand andloyalty for California avocados in season.

CAMPAIGN: From June 1, 2011 to June 1,2012, the California Avocado Commission(CAC) entered its fourth season of the innovativeCalifornia Avocado Grower campaign with aHand Grown in California theme. The CAC'smarketing program addresses consumerinterest in who grows their food and exactlywhere it is coming from. National print ads inepicurean and lifestyle magazines as well asonline advertising ran in-season and werecomplemented by regional radio spots. Anumber of different programs within thecampaign created thorough and completemessaging to a variety of consumers. Forexample, the Avo Babies program promotes thenutritional benefits of feeding children Californiaavocados. Combining social media, retailactivity and public relations, the CAC createdthe California Avo Babies photo contest, whichpromoted avocados as a great first food andencouraged users – and moms alike – from theearliest possible age. The CAC also employedthird-party nutrition experts to serve as spokes-people, including Dr. Connie Gutterson, R.D.,PhD, an internationally renowned registereddietician and best-selling author. The CAC alsoused foodservice publicity programs and ArtisanChef programs to spread the word about Cali-

fornia avocados.RESULTS: These insights inspired

consumer messaging communicatingCalifornia avocados as meticulously andresponsibly grown by nearly 5,000 multi-generational family farmers who stillcultivate, nurture and harvest by hand.Radio and on-line ads achieved more then1 billion impressions in 2011 alone andreinforced the premium quality of Californiaavocados.

2 4 T H A N N U A L M A R K E T I N G E X C E L L E N C E A W A R D S

Marketing Excellence.qxd:Layout 1 8/8/12 4:37 PM Page 2

Page 25: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Columbia Marketing InternationalWenatchee, WA

CMI’s One-of-a-Kind Display “Dolly”OBJECTIVE: To create a look of an old-fashioned wooden

dolly/hand cart that would appeal to consumers and that alsoshipped with everything in one box; to create a display thatwas unique and eye-catching, but also very easy for producemanagers to build.

CAMPAIGN: Inside the one box are two Euro cases ofCMI apples, or pears, a folded display piece and header. Inan instant, a box transforms into an old-fashioned woodendolly/hand cart. A QR code explains to retailers exactly howto set it up.

RESULTS: Results have been outstanding. Retailers lovethe ease of the display and both retailers and customers areamazed at the likeness of an old-fashioned wooden dolly.

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 25

Concord FoodsBrockton, MA

Nuts for Banana BreadOBJECTIVES: To increase awareness for the Chiq-

uita Banana Bread Mix and California Walnuts – thepromotion’s partner; to drive consumers to website,and to increase sales of Chiquita Banana Bread Mix.

CAMPAIGN: This campaign, which ran fromOctober 1, 2011 - December 1, 2011, featured theversatility of the banana bread mix and how well ittastes with walnuts. Concord Foods partnered withCaliforniaWalnuts to provide consumers with a rangeof versatile recipes using banana bread mix and

walnuts such as BananaWalnut Whoopie Pies andBanana Walnut Streusel Coffee Cake. Recipes wereheavily promoted in-store and online with the use ofattention-getting graphics in the form of posters, on-pack stickers and recipe tear-pads. An online elementincluded Nuts 4 Banana Bread Trivia Tuesdays on Chiq-uita’s Facebook page. To support the campaign,Concord Foods also sponsored a store display contest.

RESULTS: The campaign created over 700,000impressions for the Chiquita Banana Bread Mix andCaliforniaWalnuts. Thewebsite was visited by almost4,000 consumers. During the campaign period, therewas a 32% increase in banana bread mix sales.

2 4 T H A N N U A L M A R K E T I N G E X C E L L E N C E A W A R D S

Marketing Excellence.qxd:Layout 1 8/8/12 4:37 PM Page 3

Page 26: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

2 4 T H A N N U A L M A R K E T I N G E X C E L L E N C E A W A R D S

Crunch PakCashmere, WA

Crunch Pak Goes Backstagewith the Stars

OBJECTIVE: To generate awareness for itsproduct line and to reach third-party influencers(media, PR agencies, etc.) by providing its prod-ucts as snacks backstage at entertainmentaward shows for music, television and themovies.

CAMPAIGN: Crunch Pak donated applesand other fresh fruit snacks for Hollywood elites,including the host, presenters, nominees,performers, as well the executive and produc-tion office staff at the recent Billboard MusicAwards, Nickelodeon Kids Choice Awards andthe 84th Annual Academy Awards ceremony,held in Los Angeles. Crunch Pak provided freegrab-and-go snacks and custom trays of fresh-cut apples, grapes, carrots and other freshproduce at each the show.

RESULTS: Crunch Pak is excited by theresponse its products garnered at the awardshow. The company came away from theshowswith new relationshipswith PR firms andother key influencers and plans to work withproduction companies on future award shows.

Idaho Potato CommissionEagle, ID

Comic Book HeroesCampaign

OBJECTIVE: Reinforce and grow the repu-tation of Idaho potatoes as America’s highestquality, No. 1 selling potato; to increase retailersupport for Idaho potatoes, thus driving volumeand growing the potato businessthroughout the country.

C A M PA I G N :Building upon thetremendous success of the “Comic Book”Campaign, which is in its fourth year, the latestiteration of the campaign depicts IPC's retailpromotions directors Ken Tubman, Bill Savilonis,Larry Whiteside and Kent Beesley as modern-day superheroes who, in traditional comic bookformat and fashions – bright costumes included– bring to life everyday issues retailers face andoffer practical, yet heroic solutions. The comicbooks, which are distributed at produce tradeshows, along with the ads they are used in,builds camaraderie between produce execu-tives and potato reps, and serve as a reminderthat Idaho potato reps are always ready to help“save the day” by increasing sales and profits.Comic book ads ran in produce trademagazines,and actual Comic Books were distributed atproduce trade shows. Additionally, animatedwebisodes were posted on idahopotato.comand youtube.com and direct-mailed on DVDs.Bobbleheads and pint glasseswith scenes fromthe comic books were also mailed to groceryproduce managers.

RESULTS: Based on the amount of retailerfeedback and support “Comic Book” hasdramatically improved Idaho’s reach to the tradeindustry through a consistent, integratedapproach and a touch of humor. The campaignhas also won many awards for excellence andinnovation in marketing communications.

Idaho Potato CommissionEagle, ID

Idaho Potato BowlSponsorship

OBJECTIVE: To rally consumers – andcollege football fans – around the country toembrace the spirit of the inaugural FamousIdaho Potato, previously named the Humani-tarian Bowl, and continue the tradition of bowlgames named after the state's top agriculturalexport.

CAMPAIGN: The promotion ran onDecember 17, 2011, the day of the FamousIdaho Potato Bowl, which was televised onESPN and attended by over 30,000 fans. Formonths prior, IPC worked with its advertisingagency, Evans, Hardy & Young, to prepare forthe sponsorship package of naming the bowlgame. The IPC received extensive recogni-tion during the televised game, as well asthroughout the stadium, including but notlimited to: year-long signage in multipleprominent locations; nine televised and radioads that aired during the game; logos on the25-yard lines; end zone sideline and fence

signage; game tickets and passes; Boise airportvideos; newspaper ads; and game-day programadvertisingwith the IPC logo on the cover. Addi-tionally, the IPC rallied consumers around thecountry throughout the fall with a special tail-gating recipe page on its website, a vignettewith culinary icon Mr. Food, and all-expense-paid trip sweepstakes.

RESULTS: The Idaho Potato Commissionhad more than 4.3 billion media impressions asa result of multiple marketing initiatives. Thissingle event generated positive and consistentmedia coverage for the Idaho potato brand overa five-month period.

26 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

Marketing Excellence.qxd:Layout 1 8/8/12 4:37 PM Page 4

Page 27: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

2 4 T H A N N U A L M A R K E T I N G E X C E L L E N C E A W A R D S

Network for a HealthyCalifornia/Harvest

of the MonthSacramento, CA

Fruit and VeggieFest - Santa Ana

OBJECTIVE: Over the month of May, theNetwork for a Healthy California’s Fruit andVeggie Fest partnered with retailers to takeadvantage of retail promotions of fresh produce,in-store events and displays to promote thehealth and taste value of fruits and vegetables.The program catered to the area's predomi-nantly Latino population, illustrating how freshproduce can be incorporated into everydaymeals.

CAMPAIGN: The Santa Ana Unified SchoolDistrict and Orange County Regional Networkhosted the Fruit and Veggie Fest at the North-gate Markets, setting up a collection of in-storebooths and displays allowing shoppers tosample and learn about nutritious food options.On hand to help the nutrition experts wereHarvest of the Month Moms, a group of momsfrom Santa Ana School District who are all

veterans of the district’s Harvest of the MonthParent Cooking Class. From the collections ofdisplays and volunteers, shoppers at themarketwere given tips and ideas on how to gainaccess to healthy and affordable food options.Harvest of theMonthMoms prepared a BananaBerry Split for shoppers, who were also given acopy of Flavors of my Kitchen, the new cook-book from Network for a Healthy California.

RESULTS: About 250 shoppers took part inthe campaign, most reflecting the target Latinopopulation of the event. Mothers who attendedsaid they learned helpful ways to serve morefruits and vegetables to their children.

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 27

Idaho Potato CommissionEagle, ID

Chef's Statements CampaignOBJECTIVE: Evans, Hardy & Young Inc.,

helped the IPC target the foodservice industrywith a campaign designed to demonstrate howIdaho potatoes could be used in excitingcontemporary recipes.

CAMPAIGN: The campaign, which began inAugust, 2011, had renowned restaurant andinstitution chefs develop creative new Idahopotato dishes that “made a statement,” whichwere photographed by award-winning photog-raphers. The photographswere then used in thecreation of ads that appeared in restaurant andinstitutional trade magazines. Recipes includedChef Rick Tramonto's Twice Baked Idaho Potatowith Truffles and Cheddar, Chef Mindy Segal'sIdaho Potato, Lardon and Aged Cheddar Quiche,Chef Kent Rathbun’s Idaho Baked Potato Saladand many more. The ads, which were titled,“Passionate About Potatoes,” also includedeach chef's personal passion, which ran thegamut from community service and charitywork to feeding American soldiers overseas.

RESULTS: The visually arresting promotionhas been a great success, inspiring restaurantand institution chefs to order Idaho Potatoes andadd them to their menus.

National Mango BoardOrlando, FL

Mango Hometown Tour

OBJECTIVES: The campaign was createdto reach out to multiple audiences, whileworking with local foodservice professionalsand retailers; to connect with consumers inopportunistic markets across the United Statesto increase mango consumption; to teachconsumers the versatility of using mangos in avariety of healthful recipes.

CAMPAIGN: The National Mango Boardvisited six cities across the United States duringthe tour from May through August 2011,including St. Louis, MO; Charlotte, NC; Portland,OR; Tampa, FL; and Cleveland, OH. Cities werechosen based on mango consumption, mediamarket potential, presence of a strong momcommunity and several other factors. In eachmarket, two top local chefs were enlisted tocreate unique mango recipes inspired by theirhometown cuisine. The chefs participated in ataste-off event with local media, food bloggersandmango fans to see whosemango dish trulyreflected the essence of the mango andcaptured the flavor of the region. The NMB alsoworked with a retailer in each market to show-case mangos for consumers before, during andafter the event. A mango gift bag was given toeach attendee to help them bring home themagic of mangos. In conjunctionwith the taste-off event, the NMB also hosted a luncheon forlocal chapters of popular online mom commu-nities, where moms learned more aboutmangos in kid-friendly mango cooking demoand mango cutting lesson. The program alsoincluded media outreach in both local andnational markets to consumer media outlets.

RESULTS: The tour had approximately 400attendees. With an investment of $215,000,Mango Hometown Tour reached consumersmore than 115 million times for a return invest-ment of 536 impressions per dollar invested.

Marketing Excellence.qxd:Layout 1 8/8/12 4:38 PM Page 5

Page 28: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

2 4 T H A N N U A L M A R K E T I N G E X C E L L E N C E A W A R D S

Sunkist GrowersSherman Oaks, CA

Sunkist Valencia Oranges“Green is Good” Campaign

OBJECTIVE:To educate consumersabout green color that shows up on Valenciaoranges (known as re-greening) during thesummer months; to drive consumers to theSunkist Valencia YouTube video featuring ChefRobert Danhi that explains the process of re-greening; to build new relationships withbloggerswho can help spread themessage that“Green is Good” and drive consumers to theSunkist website for more information onValencia oranges and other citrus fruits.

CAMPAIGN: Working with its agency,Integrated Marketing Works, Sunkist usedstrategically targeted IZEA bloggers to helpeducate consumers about Sunkist Valenciaoranges and the re-greening process. Bloggerswere provided with a link to the Robert Danhi“Sunkist Valencia Oranges Re-greening Video”where consumers could view a short two-minute video about why the oranges re-green,along with brief educational information on re-greening, a Sunkist Caprese recipe and SunkistValencia Orange Tips. Bloggers were thencharged with disseminating the information toconsumers worldwide.

RESULTS: Seventy blogs were postedabout Valencia Oranges, resulting in 191,236consumer views. The YouTube video featuringChef Robert Danhi received 1,524 views todate. Sunkist also built new relationships with70 bloggers with over 10,000 unique monthlyvisitors for a total blog reach of 2,365,949.

Ocean Mist FarmsCastroville, CA

Artichoke Aficionado ClubSweepstakes: Take Your Pic

OBJECTIVES: To generate consumerawareness for Ocean Mist Farms artichokes;engage shoppers, artichoke club members andretailers nationwide, prompt purchases in-store,increase membership in the ArtichokeAficionados club and drive consumers to theOcean Mist Farms website.

CAMPAIGN: The company’s consumersweepstakes ran for four weeks during the peakspring season fromApril 2-30, 2012. During thattime, artichoke shoppers were encouraged totake pictures of fresh artichokes wherever theysaw them on sale, or in print ads, and uploadthem to the Ocean Mist Farms mobile site. Onewinning picture was selected each week inApril and received a $2,000. Entrants had tobecome members of the Artichoke AficionadosClub to be eligible to win, and were rewardedfor being Ocean Mist Farms’ eyes and ears inthe retail market and for helping othercustomers find artichokes on sale. Ocean MistFarms promoted the sweepstakes with emailblasts to its more than 34,000 artichoke clubmembers, in-store signage, petal inserts, andits Facebook, Twitter and Pinterest accounts. InNorthern California, SaveMart, Lucky and FoodMaxx participated in artichoke display contestsduring the sweepstakes period.

RESULTS: Ocean Mist Farms had 5,255visitors to the sweepstakes web page, 2,388photo entries overall and 422 new membersenrolled in the Artichokes Aficionados Club. Thecombination of media outreach, in-store point-of sale, online and social media outreachdelivered more than 65 million consumerimpressions during the sweepstakes period.

Network for a HealthyCalifornia/Harvest

of the MonthSacramento, CA

Cilantro to Stores

OBJECTIVES: The goal of the programwasto bring more healthy food alternatives for resi-dents and visitors to under-served areas ofWestern Chula Vista; to increase access tohealthy food by giving these stores the supportand resources to begin selling fresh produce; tocreate a distribution systemwith local, certifiedfarmers, providing easier access to their freshlygrown produce.

CAMPAIGN: The campaign, which startedin December, 2011, and is still ongoing, beganwith education and preparation for four chosencorner stores, where local San Diego Countyresidents often shop. Each storeowner receivedtraining from the Network for a Healthy Cali-fornia Retail Fruit and Vegetable MarketingGuide, learning about the details of produceretail, from marketing to display techniques.Since the kickoff, corner stores have continuedto host Harvest of the Month taste tests,focusing on quick tips and nutritional informa-tion for healthy food choices. Some of the mostexciting events include Farmer Steve, a localproduce provider who personally delivers truck-loads of fresh produce from his nearby farm tothe participating stores. Unique “Meet theFarmer” posters were created to complementthe Farmer of the Month newsletter.

RESULTS: Cilantro to Stores has resonatednot only with customers, but also with localmedia and the community as a whole. Prelimi-nary surveys showed that more than 90% of theresidents said they would purchase freshproduce offered at the stores. All four originalparticipating corner stores have agreed tocontinue carrying fresh produce at least throughthe end of the year, with some of them evenadding more variety. An additional four storeshave joined the program.

28 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

Marketing Excellence.qxd:Layout 1 8/8/12 4:38 PM Page 6

Page 29: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

2 4 T H A N N U A L M A R K E T I N G E X C E L L E N C E A W A R D S

Sage Fruit Co.Yakima, WA

Sonya Apple Sale & DeCAProduce Managers Display

Contest

OBJECTIVES: To reward commissaryproduce managers for creative displays whilepromoting Sage’s premium specialty Sonyaapple; to increase Los Angeles-based whole-saler Coast Produce’s and each commissary’soverall apple category sales and distribution; toincrease customer awareness of a new applevariety in Sonya apples.

CAMPAIGN: Working with Coast ProduceCo. and DeCA, Sage Fruit promoted its Sonyaapple for two weeks between February 20 andMarch 4. Sage Fruit and Sonya POS materialwas prominently featured in all ads and in thedisplays. Displays were then judged on size,originality, theme, signage, and usage of Sageand Sonya products and point of sale material.Prizeswere awarded to the top four displays outof 18 participating commissaries supplied byCoast Produce in the Los Angeles area.Supporting material included Sonya apple pop-up bins, header cards, Sage Fruit tote bags andSonya apple posters.

RESULTS: The promotion was a hit with36,000 pounds of Sonya apples sold. The totalapple category showed a double-digit increaseover the same time period last year.

Stemilt Growers LLCWenatchee, WA

Lil SnappersOBJECTIVE: To sell snappy, juicy, kid-sized

apples and pears available in convenient grab-n-go 3-lb. bags.

CAMPAIGN: Stemilt created a thoroughcampaign to promote its brand Lil Snappers. Thecompany introduced new resealable packagingwith a quilted tear-resistant handle and an

enhanced slider zip. The gusseted bag easily standsup in the fridge. Packaging also included eye-catching graphics for kids andmoms on shipping and displaycartons. The colorful one-touchdisplay bin held 12 3-lb. bags andwas easily assembled by retailersand encouraged cross-merchandisingthrough various department and othersatellite displays. A QR Codeeducated and engaged moms and

kids alike providing nutritional information, funapple facts and a number of different children's

games. Many conventional and organic vari-eties were included,ranging from Galas andGranny Smith to Pinataand Pink Lady.RESULTS: The program

was a success, attracting theattention of both retailers andconsumers.

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 29

Marketing Excellence.qxd:Layout 1 8/8/12 4:38 PM Page 7

Page 30: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Vidalia Onion CommitteeVidalia, GA

Vidalia Onion MuseumNational Media

Relations CampaignOBJECTIVE: To introduce and celebrate the

Vidalia Onion brand to more people nationwidevia the new Vidalia Onion Museum in Vidalia,GA. Studies from the Georgia Department ofEconomic Development showed that travelerslooking for information and tourist destinationspertaining to Vidalia onions brought in $26million annually. Thus, the impetuswas born forvisitors to learn what makes Vidalias so unique,the crop's basic history and the field-to-forkfundamentals.

CAMPAIGN: A five-year collaborationbetween a volunteer board, the city of Vidaliaand the Vidalia Onion Committee (VOC) finallyled to the grand opening of the Vidalia OnionMuseum on April 29, 2011, which correlated tothe annual Vidalia Onion Festival and the kickoffof the 2011 onion harvest. Media were invitedto cover the grand opening, where a strong line-up of speakers included the GA Commissionerof Agriculture and well-known chefs, whocreated original Vidalia recipes for attendees.The entire event was planned around an elegantcountry theme, showing off the state pride.Even floral centerpieces included Vidalia onions!Plenty of coverage via the VOC was executedbefore, during and after the opening, which high-lighted the event and the new facility'sattributes.

RESULTS: The event was a successful startto the national campaign, which will continueuntil December 2012. Two-hundred guestsRSPV'd with a whopping 250-plus attending,including more than 30 media outlets. Nationalcoverage of the event includedUSA Today, CBSNews, ABC, Yahoo! and more. In the first ninemonths, tourists came from 36 states and sixforeign countries, with those figures continuingto increase.

2 4 T H A N N U A L M A R K E T I N G E X C E L L E N C E A W A R D S

30 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

Sunlight International SalesDelano, CA

Harvest HobgoblinOBJECTIVE: To highlight Sunlight's autumn

grapes and increase sales during the Halloweenseason, with a fun seasonal brand, labeling andgraphics that appeal to kids and adults alike.

CAMPAIGN: Between June 1, 2011, andJune 1, 2012, Sunlight used a Halloween-themed graphic design for the Hobgoblin brandfeatured on grab-n-go bags. The tagline, "Notrick, all treat," brought home all the Halloweenmessage of grapes as a fun and healthful snack,and maybe even one to serve at a Halloweenparty. POS materials, such as store bins andshelf-danglers were made available to retailers.A QR codewas also included on the display bin,which takes readers to amobile site where theycan learn about the Dulcich family behind theSunlight brand. Sunlight's booth at the PMAtradeshow featured costumed characters andthemed decorations to go along with theHalloween promotion.

RESULTS: The promotion was verysuccessful. The company received industrymedia coverage, increased sales, visibility andretailer interest. Customer feedback has encour-aged Sunlight to continue the promotion on anannual basis. The success of the Hobgoblinpromotion has also inspired other options forseasonal promotions.

University ofMassachusetts, Amherst

Amherst, MA

Mango Mania

OBJECTIVE: To promote simple food andhealthy eating, educate students on the healthaspects of mangos, and create excitement.

CAMPAIGN: UMass Dining conducted amassive marketing campaign to promote theweek-long event fromApril 30-May 4. Outreachbegan with information on the school's websiteand a campus-wide promotion. Studentsattending the event received pamphlets aboutcutting and scooping mangos and cases ofmango lip balm as a kick-off promotion.Throughout theweek, studentswere introducedto a variety of mango dishes, including Cinco deMango Quesadillas, Thai Green Mango Salad,Shrimp andMango Tacos, Mango and Pine NutSalad andmore. These dishes not only delightedstudent diners but also showed them new andinteresting ways to incorporate mangos intohealthy dishes.

RESULTS: UMass dining spent over$10,240 on mangos for the event this yearcompared with only $6,370 for the same weekin 2011. Average traffic count was up 15percent for the week and customer satisfactionwent up to 8.8 out of 10. A total of 15 newrecipes were used during the event that incor-porated mangos in a number of menu items.The school plans to host a many day once ayear as part of its produce awareness series.

For information about enteringthe2013

MARKETING EXCELLENCE AWARDcompetition,

please visit our Web site atwww.producebusiness.com

Marketing Excellence.qxd:Layout 1 8/8/12 4:39 PM Page 8

Page 31: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Surprising results from recent research by Dole chal-lenges the produce industry to reinvent the way itperceives promotion and merchandising in theproduce department. “Produce is the biggest drawin the store, and yet it hasn’t changed much over

the years,” says CarrieAnn Arias, director of shoppermarketing for Monterey, CA-based Dole Fresh Vegetables.“We undertook this research to look at how produce affects

the entire store and shopper behavior, and to discover if ourstandard practices are optimizing produce department sales.The results revealed areas where retailers and our industry canmake substantial progress.”

Implemented by London, UK-based TNS Retail & Shopper,a world leader in market research and global market informa-tion with offices throughout the world, the unique study“triangulated” the shopper using multiple methodologies to

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 31

Dole ConsumerResearchYields

Shocking InsightIt may be time to rethink the produce department

and how we’re selling to consumers.

BY JODEAN ROBBINS

CASE STUDYEXCLUSIVE REPORT

Dole Research.qxd:Layout 1 8/1/12 3:27 PM Page 1

Page 32: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

role priceplays in thes h o p p e r ’sd e c i s i o n -making process.Finally, we watchedhow the shopper navigates the sectionand which products serve as signposts.”

The interviews helped reveal theshoppers’ attitudes and motivations.“Through the Exit Interviews, wediscussed other areas of the storeshopped, store selection factors and therole of produce in store selection,produce shopping satisfaction andproduce purchase drivers and barriers,”says Arias. “The Qualitative Interviewshelped obtain a deeper understandingof the why to some of the tracking andbehavior we observed.”

Startling ResultsThe study exposed some surprising

and likely controversial results withrespect to how produce is merchandisedand promoted. “Because of the method-ology, we were able to identify manythings we have considered the ‘gospel’of produce shopping that in reality mightnot be so true,” says Arias. “We also sawsome distinct results that may contradictsome of the more recent innovation inthe retail world today. There are a lot ofnuggets that came out of this study.”

The first notable result of the study isthe confirmation that the producedepartment should be first in flow. “ThePathTracker information illustrates theimportance of locating the producedepartment first for highest sales,” saysArias. “For stores that do not have

after shoppers left the produce depart-ment and Qualitative Interviews wereconducted while viewing eye-track videowith the shopper to help better under-stand motivations while shopping.

“With PathTracker, we looked at howpeople shop the produce departmentwith the goal of helping to identify whatthe optimal produce department organ-ization and adjacencies would be,”reports Arias. “We wanted to pinpointwhat should be first and last in flow andconsider design, like how fixtures anddisplays should be laid out.”

Eye-tracking revealed what peoplenotice and how long it interests them.“We used this to look at how shoppersuse POS,” states Arias. “What is effectiveand what is not? We also looked at what

yield richer results. The study wasperformed in six stores of differingformats throughout five geographicregions. Its goal was to determine whatshoppers are doing in real time.

“Multiple research methods arerequired to provide robust learning andinsight,” says Arias. “Observational tech-niques must be used to understandshopper behavior properly since shop-pers post-rationalize when surveyed.Integration of secondary data andindustry knowledge is also a powerfuladdition.”

Multi-Method StudyThe study, performed during August

and September, 2011, and released inJuly, 2012, utilized four primary methodsof investigation: PathTracker, Eye-Tracking,Exit Interviews and Qualitative Interviews.PathTracker shoppers were selected atrandom as they entered the store andwere unobtrusively followed. Videocameras tracked shoppers’ paths andcaptured behaviors. Eye-Tracking respon-dents were recruited and outfitted withhigh-tech camera glasses that recordedexact points where shoppers werelooking. Exit Interviews were conducted

32 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

REVOLUTIONARYIDEASThe Dole Produce Reinvention studyrevealed the following potentiallymutinous results:• The produce department should be

first in flow.• The faster shoppers buy, the more

they will buy.• Shoppers won’t spend time

puzzling out products outside theirusual routine.

• Placing produce in service deli andprepared foods is not the optimumlocation.

• Dairy is a better adjacency than theservice deli.

• Current POS is not engaging theshopper.

• Non-produce items in producemust be directly relevant to shop-pers.

The study wasperformed in six stores

of differing formatsthroughout five

geographic regions.“The PathTrackerinformation illustrates theimportance of locating theproduce department firstfor highest sales. Forstores that do not haveproduce first in flow,research shows trafficflowing into thedepartment wasnegatively impacted andsales of produce werelower.”— CarrieAnnArias,Dole FreshVegetables

Dole Research.qxd:Layout 1 8/1/12 3:27 PM Page 2

Page 33: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

average of 25 percent of space in aproduce department, but only accountfor four percent of sales.”

The study pointed to a correspondingdecrease in sales with an increase in non-produce items. “Shoppers expressedthat there was too much paraphernalia inthe department and didn’t get theconnection to produce for many of theitems,” explains Arias. “Retailers mustlook for the right combinations of prod-ucts that make sense and build sales.This is a tremendous opportunity forretailers to make some quick changesthat would impact their sales. If you’regoing to devote one-quarter of thespace, you want to get one-quarter ofthe sales.”

The study also illustrated how currentPOS is not engaging the shopper. “TheEyeTracker data showed that the store’s‘barker’ or price sign is the only POS theshopper views,” reports Arias.“And, even pricing POS islargely overlooked.Shopper attention is onthe product.”

produce first in flow, research showstraffic flowing into the department wasnegatively impacted and sales ofproduce were lower.”

The study also indicated the trend ofplacing produce in service deli andprepared foods is not the optimum loca-tion. “The research showed howproduce shoppers frequently bypasssignificant sections of these areas,”explains Arias. “Displays around andbetween the two departments becamedead zones. We learned that dairy is abetter adjacency than the service deli.”

TNS research also showed that thefaster shoppers buy, the more items theywill purchase. “Contrary to popular belief,slowing down the shopper by addingobstacles doesn’t increase sales as muchas speeding them up does,” reportsArias. “For every one second we slowed ashopper down we got about 2 cents, yetfor every one second we sped a shopperup we got about 21 cents (of total basketring). Decreasing purchase time at theshelf results in larger baskets more effec-tively than encouraging longer trips.”

More NuggetsAdditional revelations

revolved around two producepowerhouse techniques — theaddition of SKUs and use ofPOS. The inclusion of non-produce items in the producedepartment was raised as a potentialstumbling block. “It is important to havenon-produce items, but the researchshowed that relevancy is very impor-tant,” says Arias. “Research shows thatnon-produce items currently occupy an

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 33

Effective POS must concentrate onquicker communication methods. “Text-heavy POS doesn’t work,” adds Arias.“The amount of time a sign is looked atis .3 seconds on average. Communica-tion must link to usage through imagesand icons.”

The Qualitative Interviews revealedtime constraints hinder new productpurchases as well. “Most shoppersexpressed they won’t spend timepuzzling out products that are outsidetheir usual routine,” says Arias.

A Call To ReinventThe study results indicate the produce

department is ripe for reinvention. “Theresearch points to the opportunity toapply some of the things that happen incenter-store to produce and experiencegreat success,” advises Arias. “Tradi-tional CPG (Consumer Packaged Goods)practices in produce can be effective and

lead to big wins.”Reinvention starts with part-

nering. “One of the maindrivers of this study was toensure we’re being the bestpartners we can be with ourretailers,” states Arias. “No

one has ever done researchlike this, and we undertook it

because it makes us a betterpartner. In addition to our retail part-

ners, we also partnered with all parts ofDole — fruit, vegetables, and packagedsalads. We wanted to ensure a compre-hensive approach.”

Moving forward, Dole looks to utilizethe information to help lead transforma-tion. “As the biggest brand, Dole is wellpositioned to partner with retailers to

Results from thestudy confirm what

industry insiders havealways said about

produce being “firstin flow.”

Shoppersthought therewas too much

paraphernalia in thedepartment and didn’t

see the connectionwith many of the

items.

Dole Research.qxd:Layout 1 8/1/12 3:27 PM Page 3

Page 34: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

lead a reinvention,” says Arias. “Part ofour commitment to the partneringretailers was to present the results of theresearch and help them find the poten-tial advantages. We’re exploring withthem the things they want to focus onwith us in the future.”

In the end, it comes down to under-standing shopper expectations. Ariasexplains, “We’re being progressive andshopper-centric. A whole new set ofquestions came out of this research, butthat’s the nature of research. We muststay focused on the shopper.”

Dole hopes for the industry, ingeneral, to glean and apply helpfulnuggets of information from theresearch. “It may be unreasonable tothink all the results can be imple-mented,” says Arias. “But we’d like tosee companies at least undertake someof the top things and implement them.We just want more produce in the basket— if there is more produce in the basket,everybody wins.”

As the retail landscape changes, somust produce. “Consumers arebecoming more demanding,” statesArias. “They are becoming increasinglymore connected and requiring morecustomization. Competition for thegrocer retailer’s produce business isfierce, and shoppers want more fromtheir grocery stores. As an industry, wemust continually look at how we canwork together to ensure we’re maxi-mizing our opportunity and meetingshopper needs.” pb

34 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

“It may be unreasonableto think all the results canbe implemented. But we’dlike to see companies atleast undertake some ofthe top things andimplement them.We justwant more produce in thebasket — if there is moreproduce in the basket,everyone wins.”— CarrieAnnArias,Dole Fresh Vegetables

Dole Research.qxd:Layout 1 8/1/12 3:28 PM Page 4

Page 35: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

BROKERS GOURMET TRADING COMPANY HARVEST SENSATIONS JACOBS, MALCOM & BURTT KEYSTONE FRUIT MARKETING

BROKERS GOURMET TRADING COMPANY HARVEST SENSATIONS JACOBS, MALCOM & BURTT KEYSTONE FRUIT MARKETING

PAIA

THE

PERISHA

BLESPECIA

LISTPRO

GRESSIV

EPRO

DU

CERO

SEMO

NT

FARM

Sa

C.H.RO

BINSO

NCO

MPA

NY

SOU

THERN

SPECALTIES

TEAM

PROD

UCE

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 35

PERUVIANASPARAGUS.qxd:. 7/31/12 5:42 PM Page 2

Page 36: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Whether in corrguatedcardboard or RPCs,transport packagingoptions run thegamut.

Retail stores in the United Statesthrew out more than 9 billionpounds of fresh fruits and vegeta-bles in 2008, according to a studypublished in the Journal of

Consumer Affairs. The right trade packagingcan go a long way toward reducing that scan-dalous and expensive waste. Food safety isfront-and-center in the minds of consumersand retailers, alike, and here, too, packagingcan play a vital role. The packaging used tobring produce from the field to the store is afirst step in answering the environmental andeconomic challenges of sustainability. Withmany trade-packaging options available, thechoice begins with a question long familiar inthe retail produce business.

Paper Or Plastic?Or, to be more precise, corrugated card-

board or reusable plastic containers (RPCs)?Safeway weighed in on this question in a big

way with the announcement this June that ithas transitioned to RPCs for the transport ofmany produce items from field to store.According to the Arlington, VA-basedReusable Packaging Association, the Safewayinitiative has eliminated the use of more than17 million pounds of corrugated boxes,avoided the harvesting of approximately114,000 trees, and reduced emissions of37,518 metric tons of greenhouse gas emis-sions from the environment, equivalent totaking 6,872 passenger cars off the road.

Safeway’s transition to RPCs for trans-porting produce through the chain from thefield to the store continues a trend among thelargest retailers that began more than adecade ago. Jerry Welcome, president of theReusable Packaging Association, contends,“Most of the major retailers want theirproduce in reusable plastic containers. In themid-1990s, Bruce Peterson at Wal-Martwanted the company’s produce delivered in

36 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

Transport Packaging: UpholdingQuality Through The Supply ChainEven before fruits and vegetables are put on display for the consumer,the choice of packaging used to bring produce to the warehouse or retail storeimpacts a wide range of bottom line issues. BY BOB JOHNSON

RPCs, and Phil Davis at Kroger played amajor role, too. A big part of the reusablepackaging is in plastic bins and RPCs. It’s apretty high percentage of produce.”

RPCs are expensive to produce, but theycan provide efficiency in storage and trans-port from the field, to the warehouse, and onto the store. “They are more efficient, andinvolve less waste,”Welcome says. “It’s easierto move product without damaging it, andyou can stack cases on top of each other,which is a more efficient use of space in trucksand warehouses. When companies see thevalue of RPCs in terms of protecting theirproduct, they make the switch.”

The cardboard industry has not goneaway. In fact, it has stepped up its game to tryto match the competition. “When comparedwith reusable plastic containers, the key bene-fits of corrugated packaging add up to makeit the complete packaging solution,” says DonWallace, director of produce for International

PHOTO AT RIGHT COURTESY OF INTERNATIONAL PAPER CO.

Trade Packaging.qxd:Layout 1 8/7/12 12:46 PM Page 1

Page 37: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

RPCs is becoming more prevalent,” he says.Monte dates the trend toward RPCs toaround 10 years ago, and attributes the shiftto a straightforward advantage of the plasticcontainers: “They never hit a landfill, and theproduct is in a continuous loop.”

However, there is a limiting factor to thecontinued growth of RPCs, according toMonte, and that’s the up-front cost ofproducing the package. “These things areexpensive to build,” he says.

the particular needs of growers with theparticular needs of retailers it supplies.“We’vebeen in the packaging business for over 87years, and we only supply the agriculturalindustry,” says president Tony Monte. “Wesupply wood, corrugated cardboard andplastic. We have no allegiances to onecommodity over another.”

Among all the optionsMonte makes avail-able to his customers, he sees a definite trendin their choices. “Every year, the volume of

Paper Co., in Memphis, TN. “InternationalPaper’s corrugated packaging can be used inthe field by retailers and by consumers. Ithelps lower grower-shippers’ supply chaincosts, while also driving sales by being consis-tently available, ensuring product protection,providing vibrant, eye-catching graphics toconvey brand and product messaging, opti-mizing cube utilization, and reducing shrink.”

There can even be practical advantages forthe retailer in handling the corrugated card-board packaging after it has been used, pointsout Kurt Zuhlke Jr., president andCEOof KurtZuhlke & Associates Inc., headquartered inBangor, PA. “You don’t have to recover thecontainers, wash them, sell them back to thesupplier and wait for them to be collected,” hedetails.“The retailer can collect the corrugatedcardboard, bundle it and sell it to the recyclers.”

Zuhlke believes this ease of disposing ofboxes has fueled a trend back to corrugatedthat began about a year ago.“Themajor trendis that packaging has returned mainly tocorrugated cardboard. Retailers are more andmore asking for corrugated cardboard,” hesays. “Retailers got tired of holding on to thereturnables; it requires too much space.Corrugated prices have also been steady orgoing down, because the consolidation of theplants has taken care of earlier problems.”

But most observers believe the trend is inthe direction of RPCs, and the largest retailersare leading the charge. “The use of reusableplastic containers for produce continues togrow both in the USA and Canada,” says FredHeptinstall, president and general manager ofIFCO’s RPCManagement Services, located inTampa, FL. “Seven of the 10 largest retailersin NorthAmerica are in some stage of conver-sion to RPCs for produce.”

How Green Can You Get?Monte Packaging of Riverside, MI, has

been supplying agricultural producers withpackaging for three generations, spanningnearly nine decades. Its specialty is matching

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 37

PHOTO ABOVE COURTESY OF IFCO

Trade Packaging.qxd:Layout 1 8/7/12 12:47 PM Page 2

Page 38: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

and CCOF-listed for organic produce.”The Organic Materials Review Institute

(OMRI) has approved seven materials in theProcessing Packaging and Containers category.According to Roy Ferguson, CEO of ChantlerPackaging, in Mississauga, ON, Canada,“OMRI has the following organic packaginglisting program: ‘It may be used in certifiedorganic production or food processing andhandling according the USDA NationalOrganic Program Rule.’ With this in hand,organic producers would now be able to showa complete differentiation between the organicmovement and conventional growers.”

Although there are organically acceptedmethods of packaging, few, if any, producersor retailers attempt to gain a merchandisingedge from their use of OMRI-approved pack-aging. “Organic produce differentiates itselffrom conventionally grown by touting itshealth benefits, and the lack of conventionalpesticide use in the growing process,” saysFerguson. “The vast majority of the organicproduce, if not all I see in the stores today, ispacked in conventional packaging. In myview, the organic producers omit the finalstep in their value proposition to thecustomer, which is that the packaging is partof a healthier lifestyle. This, coupled with theperception that the shelf-life of organicproduce is not as long as conventionalproduce, can discourage potential customers,”Ferguson contends.

Keep It FreshChantler Packaging produces an OMRI-

approved film that delays ripening intransport by absorbing ethylene. “Prime ProFilm is modified atmospheric packaging filmthat extends shelf-life of fresh fruit and vegeta-bles in a natural way,” describes Ferguson.“Now the organic movement has a film that isOMRI-listed, and naturally extends the shelf-life of their organic products.”

of potato food processing,” says Wallace.“While the composition of this product isgreen, it can still provide a remarkable spec-trum and vibrancy of color.”

But the RPCs have the distinct environ-mental advantage of being used over and overagain. “By definition, RPCs are more envi-ronmentally friendly than traditionalpackaging, and thus meet the organicproduce shopper’s expectations,” says IFCO’sHeptinstall. “IFCO RPCs are OMRI-certified

All packaging producers and suppliers areworking to respond to the growing demandfor sustainability. The corrugated cardboardindustry jumped on board in the early yearsof the recycling movement, and now suppliersare responding with more earth-friendly inkoptions. “Since sustainability continues togrow in importance to both grower-shippersand retailers, International Paper developedEarthSaver Ink which is a new, environmen-tally friendly ink made from the bi-product

38 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

Inmy view, theorganic producers

omit the final step intheir value propositionto the customer, whichis that the packaging is

part of a healthierlifestyle.

— Roy Ferguson, Chantler Packaging

Trade Packaging.qxd:Layout 1 8/7/12 12:47 PM Page 3

Page 39: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

just tomatoes, lettuce, cabbage, broccoli,pears, avocados and apples.Chantler offers an investment in plastic

film packaging for the more sensitiveproduce items that reduces spoilage byabsorbing ethylene, and should pay off inreduced shrink both in transport and on theretail shelf. “Obviously, a film that extendsthe shelf-life on produce must have a higher

And the Journal of Consumer Affairs studyshowed that more than $6 billion in freshfruits and vegetables is lost at the retail level tospoilage in the United States annually, whichis more than 10 percent of all the producesupplied to retailers.Most of this damage is to products that are

particularly sensitive to ethylene. Losses atstore level, for example, were $4.5 billion for

Shrink caused by spoilage in transport oron the retail shelf is of such staggeringeconomic impact that management of theproblem benefits conventional as well asorganic produce. A study by the GeorgeMorris Center at the University of Guelph, inGuelph, ON, Canada, found that nearly one-third of all fresh food waste in Canada takesplace between the farm and the consumer.

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 39

“Clamshell-packedberries in corrugated

trays have been thestandard. That said,

there has recently beensome improvements

and developments withRPCs to make that a

more accceptableshipping vessel

for berries.”— Jim Scattini, Sambrailo Packaging

Trade Packaging.qxd:Layout 1 8/7/12 12:47 PM Page 4

Page 40: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

“With the passage of the Food SafetyModernizationAct this past year, the entirefood industry will need to raise the bar on

quality throughout the supply chain.As the newregulations are issued, we believe RPCs are well

positioned to helpmeet any packagingrequirements for growers, shippers and retailers.”

— Fred Heptinstall, IFCO

of sales and marketing at Watsonville, CA-based Sambrailo Packaging, in the berrycategory, among others, more and moreproduct is shipped in packages rather thanbulk. Much of this shift has to do with thedemand for vigilance in protecting foodsafety. Packages like clamshells reduce expo-sure of produce to contamination fromhandling. And if there is a problem with food-borne pathogens, the packages lendthemselves to being able to trace producefrom the retail store all the way back to aparticular field. “It gives you traceability,

price than a film that does nothing,” saysFerguson. “Having said that, let’s look at thecost. When you factor in less waste, lowerclaim rates, happier customers and increasedmarket share, the cost is lower. The savingsfor one of our chain stores in Canada is esti-mated at $95 million,” he reports. “This,coupled with Prime Pro’s recyclable factor,provides a lower than expected carbon foot-print to its value proposition.”

Walk On The Safe SideAccording to Jim Scattini, vice president

40 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

labeling and food safety advantages,” hedetails.“It began 25 years ago and it continuesto grow.”

Extrapolating one step further, Scattiniasserts that while many retailers prefer RPCs,many grower/shippers would rather packtheir berry clamshells in corrugated trays, asthey are more forgiving and allow a morecomplete air flow. “Clamshell-packed berriesin corrugated trays have been the standard.That said, there has recently been someimprovement and developments with RPCsto make that a more acceptable shipping

Trade Packaging.qxd:Layout 1 8/7/12 12:47 PM Page 5

Page 41: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

holiday season to display as gifts. However,once full of produce, the baskets are trans-ported in corrugated boxes.”

One of the goals of dual-purpose pack-aging is to maintain temperature controlfrom the field to the consumer, and to designtransport packaging with eye-catchingappeal. “We are successfully using POS mate-rial with RPCs to have a positive impact onsales,” reports Heptinstall. “Consumers buyproduce by sight, smell and taste experience,so much of the branding effort is focused onthe item. Still, RPCs provide superior productprotection and temperature control fromharvest to consumer.When handled properly,this presents consumers with produce thatnot only has a better appearance, but also alonger shelf-life.”

The use of transport packaging to displayproduce at retail can have the added benefitof reducing spoilage by reducing handling ofthe product. “We have observed a markedincrease in the use of RPCs to display produceat retail to reduce handling and labor duringthe last few years. The side impact has beenimproved quality and less unsaleables,” saysHepinstall. pb

particular, have become even higher prioritiessanctioned by federal law. “With the passageof the Food Safety Modernization Act thispast year, the entire food industry will needto raise the bar on quality throughout thesupply chain,” says IFCO’s Heptinstall.“As thenew regulations are issued, we believe RPCsare well positioned to help meet any pack-aging requirements for growers, shippers andretailers.”

Strut Your StuffMany suppliers are offering packaging that

serves as a retail display after it is used totransport produce from the field. “Display-ready boxes continue to grow in popularityamong both grower-shippers and retailers, asthey provide many advantages, such asopportunities to share brand and productmerchandising or country-of-origin infor-mation, quick and easy in-store setup, whichreduces labor requirements, and the ability tofunction as either primary or secondary pack-aging,” explains International Paper’sWallace.“Smaller, consumer-sized boxes are also beingrequestedmore frequently by retailers. Severalof our customers use baskets during the

vessel for berries.”The ability to label produce in the field

brings enormous advantages in traceability.“If you have packaged product, you can put asticker on it with a number,” Scattini details.

Food safety in general, and traceability in

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 41

Display-ready boxescontinue to grow in

popularity among bothgrower-shippers and

retailers, as theyprovide many

advantages, such asopportuities to sharebrand and productmerchandising orcountry-of-origin

information...”— Don Wallace, International Paper Co.

Trade Packaging.qxd:Layout 1 8/7/12 12:48 PM Page 6

Page 42: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

ADVERTISEMENT

EXPAND BERRY CATEGORY WITH MEXICAN SUPPLYMexico is a high quality producer and exporter of blackberry, blueberry, raspberry, and strawberry. Mexican berry production

provides supply at important times during the year so that U.S. marketers can offer almost a year-round supply in the berry cat-egory. Mexico offers a full line of complementary, high quality berry items to fit the increasing demand of the marketplace.• As of 1992, the focused attention of Mexican berry producers resulted in crop production increases of close to

390% in a five year period.• Since the year 2000 planted area for berries in Mexico has almost doubled — from

9000 hectares (22239 acres) to 16000 hectares (39536 acres) in 2010.• In 2010 the total value of berry production in Mexico approached aprox-

imatly US$420.0 million.• In 2010, blueberries in Mexico reached production of 1,039,000 tons

with a production value of US$1.9 million.• Raspberries in 2010 reached production levels of 14,000 tons with a

production value of US$66.2 million.• Strawberries in 2010 saw a production level of 233,000 tons with a

production value of US$210.3 million.• Blackberries in 2010 had a production level of 62,000 tons at a pro-

duction value of US$142.9 millions.

IMPORTANT BERRY STATISTICSWhen berries are in the shopper’s cart, the shopper spends 77% above average.The berry category is a crucial profit center as evidenced by the following facts:

STRAWBERRIES• Strawberries, the Queen of berry sales, account for 4.6% of total fruit and vegetable sales.• In the berry category, strawberries represent 74% of total volume and 58% of total berry income.• Strawberries hold the 35th position among ALL products in the supermarket, including liquor and medicine categories.

BLUEBERRIES:• Blueberries account for 1.9% of total fruit and vegetable sales.• Blueberries represent 16% of total berry volume and 24% of total berry income.• In blueberries, demand exceeds supply.

RASPBERRIES:• Raspberries account for .9% of total fruit and vegetable sales.• Raspberries represent 5% of total berry volume and 11% of total berry income.• The Mexican blackberry has differentiated itself on flavor and contributes 0.6% to total fruit and vegetable sales.

BLACKBERRIES:• Blackberries represent 4% of total berry volume and 7% of total berry income.• Blackberries hold important market potential, despite having the lowest market contribution currently.

Source: ANEBERRIES

SAGARPA.qxd:Layout 1 8/1/12 12:59 PM Page 1

Page 43: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Join the biggest berry exporters in Mexico in one single event to dis-cuss issues of importance to the Mexican berry industry.

More information on berries from Mexico can be obtained from theMexican Berry Association, Aneberries A.C., (Asociación Nacional deExportadores de Berries). The Association’s objective is to promote andfacilitate the export of berries from Mexico. It works to further theestablishment of internal and external regulations with the purpose ofguaranteeing the consolidation of a common front for producers andexporters and to establish a comprehensive operation for continuousimprovement in various issues including food safety, quality control,promotion, and development of berry production.

Some of Aneberries accomplishments include:

• Developing a Good Agricultural Practices Guide for the industry and aFood Safety Commission integrated by Aneberries members.

• Unified list of pesticides with official registration for Berries in ourcountry and countries of destination.

• Established and executed a “Clean Fields” program in Michoacán andJalisco.

• Initiated an ongoing risk study about potential for contamination instrawberries, raspberries and blackberries with the University ofGuadalajara.

• Implemented a single industry-wide minimum quality standard forblackberries.

• Carrying out projects of social and environmental impact

• Generation of plans of working with agencies, national and interna-tional, of interference in the sector.

• Participation in key international events like PMA’s Fresh Summit,ANTAD, Fruit Logistica, Sial, and CPMA.

• Develop relationships with national and foreign authorities, gettingsupport on issues of infrastructure and equipment, technical assis-tance, training, commercial certification; as well as being a supportmanager with authorities on issues such as intellectual property,specifications, plant health and food safety.

• Successful implementation of the first Aneberries International Con-gress in September 2011, and now developing the Second Aneber-ries International Congress to be held on October 3-5, 2012.

ANEBERRIES, A.C.Contact: Blanca Nelly Partida

Tel: 52 33 38133643Nextel: 52 33 16615515

Id 92*13*58341Email: [email protected]

Web: www.aneberries.mx/

HECTOR CORTESAgricultural Attache

(202)[email protected]

1911 Pennsylvania Ave NW •Washington, DC 20006

For more information on trade andbusiness opportunities with Mexico:

Agricultural Office at the Embassy of Mexico

SECOND ANNUAL ANEBERRIES INTERNATIONAL CONGRESSOctober 3-5, 2012 RIU Plaza Hotel Guadalajara, Guadalajara, Jalisco, Mexico

SAGARPA.qxd:Layout 1 8/1/12 1:00 PM Page 2

Page 44: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Retailers are helpingconsumers find new waysto incorporate old favorites,such as avocados, corn onthe cob and pineapples,into their tailgating menus.

Watch a few episodes of TheFoodNetwork’s Guy Fieri orBobby Flay and you begin torecognize the size andimportance of the trend of

grilling and its show-business arena called tail-gating. Consider it the culinary equivalent ofthe weekend sports challenge going on instadiums across the country.

Tailgating should also be viewed as anoutstanding opportunity for produce retailersto ride the wave and appeal to customers withflavorful and healthy ideas using produce forgrilling and for appetizers, sides and desserts.

The practice has moved far beyond hotdogs and burgers. Consumers are ready toplunge into grilled radicchio, asparagus,jalapeno poppers, avocados, peaches andnectarines. At this time of year, football fromcollege to pro is simply the venue most in thespotlight, drawing consumer interest andattention. What has far greater implications,however, is the focus on portable foods, readyto take along, not just to stadium parking lots,but also to the beach or ski slope, park or play-field, even your own backyard to create a

special experience and a stage to show yourentertaining chops.

Catch Consumer AttentionIt is really up to retailers to pull together

ideas and suggestions to help shoppers connectwhat they see in the produce department withrecipes and food ideas ideal for the require-ments of tailgating and other outdoor events.Robert Schueller, director of public relations forVernon, CA-based Melissa’s/World VarietyProduce Inc., puts together an annual list forretailers of the company’s Top 20 list of essen-tial foods for tailgating, ranging from salsa andguacamole kits toDutch yellow andRubyGoldpotatoes, baby vegetables for veggie trays,jalapenos for grilled poppers, edamame andsugar cane swizzle sticks.“We don’t specificallypackage for tailgating, but our packaging isgood for grilling,” he states. “The kitchen hasmoved outside, and retailers can take advantageof that.People are constantly seeking new flavorexperiences and more exotic combinations.Great displays will sell ideas and drive addi-tional revenue. It’s definitely worth the effort.”

“We started a big picnic promotion in July

44 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

On Stage And In The Spotlight:Tailgating Season BeginsTailgating may be more a state of mind than a specific event. However you chooseto define it, the idea offers great promotional opportunities and ways to capturecustomer loyalty. BY MEREDITH AUERBACH

and it will run through September,” reportsGreg Calistro, director and category managerof produce and floral for SaveMart Supermar-kets, headquartered inModesto,CA.“We bringin barbeques and coolers to display at the frontof the department.Other departments tie in aswell. We put out fresh corn and watermelon,summer squash and mushrooms. In produce,specifically, we’ve been working with GardenHighway [Ranch Cordova, CA-based Renais-sance Foods] with pre-cut vegetables; some areseasoned and some just pre-cut. They’re in thevalue-added salad section, so it extends themessage throughout the department. A bigdisplay is key.”

Get Ready To CookThere are two approaches for tailgating and

other less competitive grilling and outdoorentertaining occasions.Most love to be the starof the show, but only a select group qualify asextreme grillers for whomno new technique istoo difficult, and no special ingredient is toomuch trouble to find.Tailgating.com, awebsitedeveloped and hosted by an extreme grillerwho sold his business, his house and his old

PHOTO ABOVE COURTESY OF CALIFORNIA AVOCADO COMMISSIONPHOTO AT RIGHT COURTESY OF DEL MONTE FRESH PRODUCE N.A. INC.

Tailgating.qxd:Layout 1 8/7/12 12:55 PM Page 1

Page 45: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

condiments, seasonings and ingredients, suchas specially flavored oils and vinegars. Theretailer who helps organize these variedelements has an advantage, and can buildpromotional rapport between partners,including other store departments, suppliersand advertising.Jay Alley, vice president of retail sales for

Fresherized Foods, headquartered in SaginawTX, promotes a consumer-centric approach,saying, “What works best is creating a desti-nation for entertaining, and not just for mybrand.We built Homegating.com as a websiteto focus on cooking, parties and entertaining,both at home and at the stadium. We’vebrought in partners including distributors ofrecliners, spirits and equipment to buildexcitement. A regular promotion is ‘Build abetter burger,’which also allows a broad rangeof partners. Themes transcend just tailgating.”

Flavor Trumps All“Mann Packing Co. Inc. takes a broad view

of how to appeal to both sports fanatics andconsumers as they seek new flavors and ideas,”reports Elena Hernandez, marketing coordi-nator for the Salinas CA-based company.“Our new crinkle-cut sweet potatoes have

marketing at Del Monte Fresh Produce N.A.,based in Coral Gables, FL, advises a practicalapproach.“It’s important to educate consumerson themany ways products can be used. Fruitsand vegetables are not just for salads; they canbe combinedwith other foods and eaten at anytime of day. Our communications send asteady streamof recipe ideas andways tomakeour products more delicious and exciting. Weget ideas from all over the world andconsumers feed back their ideas to us.”Pure Hothouse Foods Inc., based in Leam-

ington, Ontario, Canada, grows hothousevegetables and has assembled over 15 differentwashed and ready-to-cook blends packed intothree different sizes of foil griller trays ready fora barbecue, an oven or even amicrowave. SarahPau, marketing assistant, notes, “It is thecombination of flavorful fresh vegetables andthe convenient package thatmake this series soappropriate for events like tailgating andpicnics. The filled trays are sealedwith a plasticfilm and hand-labeled. Every label has sugges-tions and directions to get recipes.”Many tailgating aficionados keep the family

SUV or RV well stocked with hardware: a gas-fired or charcoal grill, cooking tools, servingpieces, plates and flatware and their favorite

way of life totravel thecountry in arecreational vehicle tracking the tailgatingpractice, ran an unscientific poll several yearsago with results indicating that close to half ofregular tailgaters spend over $500 a year ontheir hobby. If your stores are in the vicinity ofa popular college or pro team, what share ofthat spending belongs in your produce depart-ments?Dionysios Christou, vice president of

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 45

Fresherized Foods’ popular“Build a Better Burger”campaign allows a broadrange of partners and getsconsumers excited aboutgrilling with a new twist.

PHOTO COURTESY OFFRESHERIZED FOODS

Tailgating.qxd:Layout 1 8/7/12 12:55 PM Page 2

Page 46: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

46 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

THE OTHER SIDEOF THE STADIUM

Side

Note

PHOTO COURTESY OF MELISSA’S/WORLD VARIETY PRODUCE INC.

selections available at stadiums acrossthe country. While there is no dearth oftraditional high-fat, salty snacks, espe-cially in the bleachers, suites andrestaurants, fans are now demandingrestaurant-quality choices and flavors. Forproduce suppliers ready and willing tomeet the needs of these part-timepurchasers, the opportunity to expandproduce business is waiting.

Robert Scheuller, director of publicrelations for Vernon, CA-basedMelissa’s/World Variety Produce Inc.,reports, “We’ve experienced growing salesin the range of 10 to 20 percent a yearover the past three seasons with farmer’smarket displays at Yankee Stadium,” heshares. They are set up along the first andthird baselines and display washed,

ready-to-eat items such as tangerines,apples, pears, bananas and clamshells ofgrapes. It’s a far cry from the old approachto snacks at games. “At the New YorkMets stadium, there’s an actual storecalled World’s Fare Market. We servicerestaurants, box clubs and suites atstadiums including Staples Center for theKings, Dodger Stadium, Angels Stadium,Dallas Cowboys and the San DiegoChargers stadiums. People are looking forrestaurant quality foodservice in pleasantenvironments to watch the games or toentertain.”

Sports organizations also see advan-tage in fresh produce and sendmerchandisers and agents out to set upjoint promotions in stadium and at ballfields. pb

recipes for pan-frying and baking on thepackage; how to prepare them on the grill ison the website. The rich flavor is perfect forany venue.”

Hernandez continues, “For an easy, non-cook angle,Mann has combined cheese cubesand sausage beef bits with washed andprepped vegetables and ranch dressing in a

sectioned tray called the Tailgater, just rightfor a game, a backyard party or even as ameeting snack.”

“All of our products could be described asflavor intensifiers,”maintains Fesherized Foods’Alley, “In addition to our signature WhollyGuacamole,we’ve developed fresh, refrigeratedsalsas like red pepper mango, pineapple,

roasted red tomato and a tomatillo blend calledAvo Verde. Even if you’re not an actual starcook, you can serve star-quality burgers, sand-wiches, dips and wraps using these ascondiments. The packages are refrigerated —not shelf stable — and sold in sections withrefrigerated dressings, cut fruit and baggedsalad.”

Equally subject to evolving trends inconsumer tastes are the foodser-vice venues and concession

Tailgating.qxd:Layout 1 8/7/12 12:55 PM Page 3

Page 47: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

listen to them talk about their lives. GreenGiant’s new website combines product infor-mation, recipes, consumer trends andconversation in one place through socialmedia.It tells us about their lives and interests.We dotrack trends through social media to build acloser community. Visitors to our site can findflavorful, healthy and interesting ideas andrecipes to use at their events, such as grilledhearts of romaine, marinated Brussels sproutsgrilled on skewers, great dips andmarinades forartichokes and corn and, always, assortedvegetable trays. pb

You can grill firm avocados, for example.Avocados work great in potato salad, and folkslove our firecracker salsa made from water-melon with guacamole served in the cleanedout, well-chilled melon shell.” You can call it ahealth message, but one perhaps made softerand more appetizing.

Mishalin Modena, senior marketingmanager at Growers Express LLC, located inSalinas, CA, makes another valuable point,“Interest in events like tailgating offersmarketers—both production and retail— theopportunity to engage with consumers and

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 47

Save Mart’s Calistro reveals, “We’ve startedusing grilling photos in our ads during thesummer. A picture of peaches on a grillcommunicates how simple it is to do some-thing easy, intensely flavorful and quite new.”

Convenience Is King“Del Monte fresh-cut fruits and vegetables

are cleaned, cut and ready-to-eat. All theconsumer needs to do is pick it up at the storeand throw it in the cooler on the way to thegame,” says Christou.“We have kabob kits andmixed vegetable trays. In some form oranother, most whole fruits and vegetables canbe cooked or flavored on a grill. Shoppers canlook for our ‘Grill Me’ secondary stickers onseveral fresh-cut products, such as Extra SweetPineapple Spears for anyone interested intrying something new. It makes it so easy.”

The industry’s surge of development andinnovation helps drive convenience. “Thespecial trays Pure Hot House Foods use arethe result of technology,” says the company’sPau. The same aluminum pan can be used ina microwave, an oven or on the grill. Thewrapping changes for individual blends ofvegetables to control the oxygen transfer rate(OTR) of the blend. These steps are in thebackground, but they are essential for productquality, flavor and shelf life— all very impor-tant to consumers.”

The “Ah-Ha” MomentsBeyond a focus on flavor, concept counts

too. Promotions are more about the theme—like tailgating — than a specific product.Because tailgating conjures up such greatvisions of old memories from years ago, theexperience viewed on TV, tweets from friends,photos on Facebook, entertainment cooking isabout selling a lifestyle. For the produceindustry, getting your product or store involvedand attached to the theme is an effective way todrive sales. Plenty of producers are findingwaysto introduce and package novel ways ofpreparing fresh produce to ensure retailers havea steady stream of ideas to encourage theirconsumers to increase purchases of fruits andvegetable, and feel satisfied about doing so.

Second, selling more forcefully the lifestyleand flavor experience than the health messagemakes sense. Are there consumers anywherewho don’t know fruits and vegetables are goodfor them? Jan Delyser, vice president ofmarketing for the Irvine-based CaliforniaAvocado Commission (CAC), shares, “Weprovide people with ideas, often taking tradi-tional items and making them different withingredients people can feel good about eating.

Tailgating.qxd:Layout 1 8/7/12 12:56 PM Page 4

Page 48: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Why does your product appealto this specific ethnic group?

Avocados are a food staple in the Latinohousehold. According to new researchconducted by Avocados from Mexico in April2012, about 50 percent of Hispanics saythey buy avocados at least once a week.Avocados from Mexico evoke a sense ofnostalgia for Hispanic consumers who grewup eating avocados and prefer fruit fromMexico. Additionally, Mexico is the world’slargest producer and offers the number 1selling avocado in the United States,providing a year-round supply of avocadosin a full range of sizes so customers can getwhat they want, when they want it.

Are there other marketsegments for this product?

Avocados are in high demand. Accordingto Nielsen’s Perishables Group, avocado salesare up 8 percent and avocados are now the4th fastest growing fruit in the producedepartment. Furthermore, avocado saleshave consistently increased more than $40million dollars per year over the past twoyears. With the popularity of avocadoscontinuing to rise, it’s more important thanever for retailers to rely on the unsurpassedquality, consistent flavor and year-roundavailability of Avocados from Mexico.

What are you doing to betterunderstand the Hispanicconsumer?

APEAM recently completed HispanicMarket Research* in order to better under-stand Hispanic female consumers and theiravocado usage habits and perceptions. Thestudy looked at three market segments:

• Least acculturated: Born outside U.S.;rely mostly on Spanish in everyday lives

• Bicultural: Largest of three groups;speak and consume media in Englishand Spanish

• Most acculturated: Majority born here;speak primarily English

Key Findings from the study showed that:• All segments are interested in new uses• 70% of all participants report year-round avocado usage

• Taste is #1 for the bicultural and mostacculturated groups, while “family and

MMEERRCCHHAANNDDIISSIINNGG TTOO EETTHHNNIICC CCOONNSSUUMMEERRSSBrand: AAvvooccaaddooss ffrroomm MMeexxiiccoo Product Focus: AAvvooccaaddooss Target Ethnic Group: HHiissppaanniicc

health” rate slightly higher than taste forthe least acculturated, and “family enjoy-ment” is important for all three groups

• All groups know that avocados arehealthy and nutritious

Are there any upcoming Avocadosfrom Mexico programs targetingthis ethnic group?

Avocados from Mexico continuouslyinvests in sales-building integrated marketingprograms targeting Hispanic consumers whichincludes television, radio, online and mobileadvertising in select markets, as well asNational print advertising, public relations,promotions and social media programs tokeep Avocados from Mexico top of mindamongst Hispanic consumers. This fall,Avocados from Mexico will also build engage-ment through exciting promotions specificallytargeting the Hispanic market.

*Study conducted April 2012 by Knowledge Network.

Avocados from Mexico is building onthe “Spookamole” campaign that waslaunched last year to position rich, creamyavocados as a must-have Halloween partyfood. Efforts are being extended to theHispanic market with a promotion themedaround “Dia de los Muertos,” the Hispanicequivalent to Halloween.

In December, Avocados from Mexicowill launch a promotion centered aroundthe popular Hispanic celebration of“Posadas” featuring Celebrity Chef Pepinto support this beloved holiday tradition.Hispanic consumers will be reached throughonline and mobile advertising, bloggeroutreach to influential Latino bloggers, aspecial online coupon offer on theAvocados from Mexico Spanish websiteand more.

What other support is available to retailers from Avocados fromMexico?

Avocados from Mexico works withretailers to develop customized programs tohelp build their avocado sales and offersmerchandising materials as well as training inSpanish so that they can promote avocadosto Hispanic consumers in store. Avocadosfrom Mexico recently introduced a newcompact circular display that can be usedwith their existing display for maximumimpact. In addition, Spanish language POSmaterials are available to retailers year-roundthat can be ordered online at www.avoca-dosfrommexico/trade.

APEAM Ethnic Gude.qxd:Layout 1 8/1/12 12:52 PM Page 1

Page 49: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

APEAM.qxd:Ad 7/27/12 4:36 PM Page 1

Page 50: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Eye-catching displays andplenty of POS materialswill make apples standout from the crowd in anoften overflowing producedepartment.

Fred Wescott, president of WescottOrchards and Agricultural Products in Elgin,MN, and grower of Honeycrisp apples, underWenatchee,WA-based Honey Bear Tree FruitCo. LLC, acknowledges, “Washington is apowerhouse in apple production.Any varietythat wants to bemore than a regional or nichefavorite and have serious production needs tobe able to perform inWashington.”

Climate is one reason whyWashington is aperfect place to grow apples. Chuck Sinks,president of sales and marketing for SageFruit Co. LLC, in Yakima, WA, says, “Ourwarm sunny days and cool nights are ideal forgrowing flavorful apples. We also have a veryarid climate, and thus haveminimal pests andbugs to deal with in the orchards.”

Washington has been a leader in culti-vating some of the most successful varietiesto be marketed. Honeycrisp, for example, hasreceived rave reviews from retailers andconsumers alike, andWashington growers areputting a lot of stock in this variety. Wentz

50 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

Washington Apple VarietyReport: What’s Hot, What’s New,What’s Next?With new varieties popping up at breakneck speeds, Washington apples areproving their power at produce departments around the country. BY CAROL M. BAREUTHER, RD

confirms, “Honeycrisp has been the mostexciting variety for everyone. It has a greatflavor profile and crunchy texture. It’s alsobroken the glass window on pricing, retailingfor as much as $2.98 or $3.98 per pound, andcustomers still can’t get enough.”

According to Loren Queen, marketing andcommunications manager for Domex Super-freshGrowers LLC, inYakima,WA,Honeycrispis one of the fastest growing varieties inWash-ington. He reports, “Acreage of Honeycrispwent from4,300 in 2006 to 9,100 acres in 2011.”

Todd Fryhover, president of theWenatchee-based Washington AppleCommission, reveals, “Washington produced3.7 million bushels of Honeycrisps thisseason, with projections of 13-plus million inthe state by 2021.”

“In addition to Honeycrisp,” says Sinks,“the fastest growing apple varieties in Wash-ington are Gala and Fuji. We have increasedour planting of all three of these varieties andanticipate increases next year and for the next

PHOTO ABOVE COURTESY OF NORTH ISLAND COMMISSARYPHOTO AT RIGHT COURTESY OF CMI CORP.

In a field already full of variety, it’sconsumers’ never-ending desire for“something new” that is driving devel-opment of innovative apple varieties. Forretailers, it’s the opportunity to differen-

tiate themselves from the competition and gainincremental sales that makes a new applevariety especially sweet.

Duane Wentz, director of produce forYokes Fresh Markets, an 11-store chain basedin SpokaneValley,WA, says,“New apple vari-eties are fun. It’s exciting to see our customersand associates get enthused about somethingthat is new, interesting and appealing. Itboosts sales for us, too.”

Perfect ClimateIt’s no wonder that future trends for new

U.S. apple varieties happen out West. Wash-ington is the No. 1 apple-growing state in thenation, with its apple industry valued at $1.44billion in 2010, according to USDA NationalAgricultural Statistics Service data.

Washington Apples.qxd:Layout 1 8/1/12 11:59 AM Page 1

Page 51: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Yakima.qxd:Ad 7/27/12 5:23 PM Page 1

Page 52: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

“In addition toHoneycrisp, the fastestgrowing apple varietiesinWashington are Gala

and Fuji.We haveincreased our planting

of all three of thesevarieties and anticipate

increases next yearand for the nextseveral years.”— Chuck Sinks, Sage Fruit Co.

stagnating insales or have fallen by the wayside. Forexample, there will be no focused marketingprograms this year for 1997-introducedWashington-grown Cameo apple. KevinPrecht, marketing program director for theCameo Apple Marketing Association, inWenatchee, WA, explains, “Production hasdecreased due to supply and demand. There-

dollar increases at retail this past season.Thesetwo varieties, along with Honeycrisp, boostsales dollars due to their higher retail pricingand have all seen strong increases in householdpenetration. Additionally, Honeycrisp andPink Lady showed increased trips per buyerand both volume and dollars per transaction.”

Some established Washington apple vari-eties, as well as newer ones, are either

several years.”“Gala has overtaken Red Delicious in

dollars and volume sold in the United States,”adds Queen, “although Red Delicious is stillthe biggest hitter grown in the state becausemuch is shipped to export markets.”

Suzanne Wolter, director of marketing forRainier Fruit Co., in Selah, WA, says, “PinkLady and Jazz have all seen double-digit sales

52 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

PHOTO COURTESY OF SAGE FRUIT

Sampling and plenty ofeye-catching POS helpconsumers learn aboutHeirloom varieties such asthe Lady Alice.

Washington Apples.qxd:Layout 1 8/1/12 11:54 AM Page 2

Page 53: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Columbia Marketing.qxd:Ad 8/1/12 6:27 PM Page 1

Page 54: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

TOP 12 NEW WASHINGTON VARIETIES

Side

Note

So what exactly are retailers looking for to‘wow’ their customers? Yokes’Wentz explains,“No. 1 is flavor, texture and eating experience.Secondly, it doesn’t have to be pretty, but ithelps. Customers buy with their eyes. Third,the name is important. Honeycrisp, forexample, perfectly describes the apple toconsumers. We’ve successfully introducedHoneycrisp, Pink Lady, Jazz, Kiku and Junamiover the past several years.”

It’s not a quick or inexpensive task to bringa new apple variety to market. Andy Tudor,

risk of cultivating new varieties. WAC’sFryhover states, “The old ‘grow-it-and-they-will-buy’ mentality is unprofitable andunsustainable. Our industry is very dynamicand responsive to consumer needs and pref-erences with a focus toward profitability.”

Rainier’sWolter says,“We specifically havethe acreage and flexibility to respond quicklyto changing consumer demands. Forexample, we replant or graft over 10 percentof our existing acreage annually to new vari-etal strains or different varieties altogether.”

fore, we’ve decided to leave it to the individualshippers to market it.”

Another example is the Rubin. “We putfour years into marketing it, but it’s notdifferent enough from a Gala,” says MacRiggan, vice president of marketing forChelan Fresh Marketing, in Chelan,WA.

The Next Best AppleAnother reason whyWashington is such a

hot bed for apple varietal development is aprogressive grower base willing to take the

54 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

There are a number of new apple vari-eties now being grown in Washington.Suzanne Wolter, director of

marketing for Rainier Fruit Co., in Selah,WA, says, “Six to eight years ago webegan planting in response to consumerand retailer requests. We are now seeingincreasing volumes as this new acreagecomes into production.”1. AAmmbbrroossiiaa:: Discovered as a chance

seedling in British Columbia, Canada, thisyear’s production will break the 600,000carton mark with widespread distribu-tion, says Bob Mast, vice president ofmarketing at Wenatchee, WA-basedColumbia Marketing International Corp.“It’s available from October to November,has a sweet honey flavor, and orange-redblush over a yellow background thathelps it stand out on the shelf.”2. AAuuttuummnn GGlloorryy:: Bred from a Golden

Delicious and Fuji cross, this firm-fleshed,spicy-sweet, red apple with hints ofyellow harvests in mid- to late-Octoberwith good storage potential. LorenQueen, marketing and communicationsmanager for Domex Superfresh GrowersLLC, in Yakima, WA, says, “We hadaround 5,000 cartons last year and antic-ipate growing to 100,000 boxes in fourto five years.” The majority of volume iscurrently organic.3. JJuunnaammii:: “The tangy, fruity, juicy

flavor has been well received byconsumers and sold out in just threeweeks this past January,” says Rainier’sWolter. Approximately 100,000 cases ofthis September-harvested (then storeduntil January) variety will be available thisyear, with production tripling over the nextthree to five years. It’s a cross between anIdeared and Maigold with Elstar.4. KKaannzzii:: This Gala and Braeburn

cross is the second largest variety

planted in Europe after Pink Lady. “TheKanzi has an intense flavor, like a sweettart,” says CMI’s Mast. Harvest begins inOctober, but the well-storing apple isn’treleased until January or February, whenstarches turn to sugars.5. KKiikkuu:: Discovered in Japan in a Fuji

orchard, this chance seedling is supersweet, brixing 10 percent higher thanFuji. “We expect 85,000 to 90,000cartons from Washington this fall,” saysCMI’s Mast, of this late October applethat will be released in January.6. LLaaddyy AAlliiccee:: Some 160,000 cases

are expected of this chance seedlingdiscovered in a Washington orchard, withvolume doubling in 2013 and showing abig increase again in 2014. “Lady Aliceharvests in late September, but storesexceptionally well, so we market it fromFebruary through mid-April,” saysRainier’s Wolter. Heirloom characteristicsinclude a firm, dense, sweet flesh with ahint of tartness and pink stripes over acreamy yellow background. 7. OOppaall:: A cross between a Golden

Delicious and Topaz, Andy Tudor, directorof marketing for Yakima-based FirstFruitsMarketing of Washington LLC, themarketing arm for Broetje Orchards, says,“Consumers love it for the complexflavor, exceptional firmness and resist-ance to oxidation, while retailers love itfor shelf-life and a brilliant yellow colorthat stands out on the shelf.”8. PPiiññaattaa:: Some 250,000 million

cartons of this Golden Delicious, Cox’sOrange Pippin and the Duchess of Olden-burg cross will harvest in November andmarket from January to May, with thistotal nearly doubling over the next fiveyears, says Roger Pepperl, director ofmarketing at Stemilt Growers LLC, basedin Wenatchee, WA. “Piñata is a stripy

bright red apple that’s crisp and juicywith a hint of a tropical taste.”9. PPiinnkk LLaaddyy’’ss SSiibblliinngg:: A sister of the

Pink Lady apple will be in volume in thenext four to five years, says Alan Taylor,the Yakima, WA-based marketing directorfor Pink Lady USA. “Marketed only underthe Pink Lady Trademark, this applebrings the same color and quality of the‘original’ apple, but picks in earlyOctober. It can also be consumed rightoff the tree with a pleasant sugar/acidbalance, compared to the original, whichis tarter when harvested.”10. RRoossaallyynnnn:: This chance seedling is

more tart than sweet, with exceptionalcrunch and a dark red color over a lightgreen background, says Sage Fruit’sSinks. “It’s harvested in lateSeptember/early October, and volume isapproximately 20,000 boxes. We antici-pate volume being similar for the nextthree to five years.”11. SSoonnyyaa:: Developed in New

Zealand, this sweet apple brixes higherthan Fuji, is crunchy and juicy, and has ared blush over a yellow background.“The marketing niche is a gourmet-typeapple excellent for fresh eating, salads,paired with cheese and baking intopastries,” says Sage Fruit’s Sinks. Sonyaharvests in mid-late September, with150,000-200,000 boxes projected for2012-2013 season.12. SSwweeeeTTaannggoo:: A cross between

Honeycrisp and Zestar, this deep redapple with a yellow blush is sweet andcrisp and harvests in September, approx-imately 10 days before Honeycrisp. “It’s agreat in-and-out apple; we sold out infive weeks last fall,” says Stemilt’sPepperl. Volume is expected at 80,000cartons this season and expected todouble in three to five years. pb

Washington Apples.qxd:Layout 1 8/1/12 11:54 AM Page 3

Page 55: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Sage.qxd:Ad 7/27/12 5:11 PM Page 1

Page 56: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

not demo it and expect it to sell. Instead, it needsgood space, good pricing and a way to enticecustomers with a treasure hunt experience.”

This is just what Fabrizio Casini, directorof produce and floral operations at Hiller’sMarkets, a 7-store chain based in Southfield,MI, did last season with the Kiku. “First, it’simportant to tell the story, where the applecame from and what makes it special,” heexplains. “Then, we display it in one of thebest spots: in the front of the produce depart-ment, which is also in the front of our stores.The real secret to selling a new apple variety is

How To Introduce A New VarietyThe bringing of a new variety to the

market provides an opportunity to offersomething unique to a specific retailer. SageFruit’s Sinks shares, “Typically, the new applevarieties command a higher price per pound,so it is an opportunity for retailers to capturea higher dollar ring and provide a uniqueexperience to consumers. Some of the chal-lenges include conveying the varietalcharacteristics to the consumer.”

Riggan agrees and adds,“You can’t takewhatcustomers don’t know, give it a higher price and

director of marketing for Yakima-based First-Fruits Marketing of Washington LLC, themarketing arm for Broetje Orchards, says,“The first big challenge is literally the years ittakes after the decision to develop a newvariety.Nurseries grow a finite amount of treeroot stock each year. The cost-per-acre for irri-gation, trellis and land is astronomical. Ifaccepted, a new variety must get to 400 or 500acres just to sustain a domestic retail programin a limited fashion. As an example, since thelate 1990s, Broetje Orchards invested atremendous amount of money to grow botha club and exclusive new variety. From thegrower standpoint, both failed due to convo-luted marketing programs and/or lacklusterconsumer response. The ROI was never recap-tured, and those orchards have been replaced.”

This timeline to bring a new variety tomarket can be up to eight years or longer, saysChelan’s Riggan.“That’s whywe have nine to 10apples inourbreedingprogramat anyone time.”

“What growers are really hoping to eitherfind in a chance seedling or breed,” says First-Fruit’s Tudor, “is the next Honeycrisp in theconsumers’ eyes, but that is more grower-friendly than Honeycrisp.”

56 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

“The real secret to selling a new apple varietyis sampling.Our produce staff walks aroundthe store for one to two hours at a time on

Saturdays, Sundays andMondays— our busiestdays— and samples the apple to customers,in addition to telling them about the variety.We also set up self-sampling locations for

the other days of the week.”— Fabrizio Casini, Hiller’s Markets

Washington Apples.qxd:Layout 1 8/7/12 12:33 PM Page 4

Page 57: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

displays.Fore x amp l e ,R a in i e r ’sWolter states,“Displays are critical to the successof a new variety. This season, we’ve developedhigh-graphic, litho-print boxes for ournewvari-eties,which canbeused to create impactful retaildisplays.Wealsoprovide retailerswith secondarydisplay bins. These have been used to create thespace needed for a new variety or to use as asecondary display. Our bins, as well as postersand shelf cards,all contain aQRcode,which linkto a video discussing the origin, growing region

built aggressive 8-ft. wide displays and ran theapple on a price promotion at slightly abovecost for two weeks. Then, we lifted the retailsome, but not enough to prevent themomentum of trial-and-repeat sales. Thepromotion wasn’t as much about makingmoney as it was always offering somethingnew to keep customers coming back. We’vealso implemented this strategy with the LadyAlice, Sonya and SweeTango,” says Wentz.

Many apple grower/marketers offer extensiveassistance to retailers in the merchandising ofnew varieties, especially in creating selling

sampling.Our produce staff walks around thestore for one to two hours at a time on Satur-days, Sundays and Mondays — our busiestdays — and samples the apple to customers,as well as tells them about the variety.We alsoset up self-sampling locations for the otherdays of the week. We were very successful indoing this with the Kiku.”

Successful new apple introductions alsorequire the development of supplier-retailpartnerships. An excellent example of this isYokes Fresh Market’s introduction of Junamilast year. Wentz explains, “We featured theJunami apples for six weeks in January andFebruary. It’s a great time of year, when theapple market is less crowded. Prior to this, weasked our supplier, Rainier, for as much infor-mation as we could get about the variety. Thisenabled our marketing department to createinformational signage for the displays. Then,we wanted to get the chain behind it, so wesent out a case to every store and askedproduce staff to put it in the break room soeveryone could sample.

“Sampling is big for us; it’s especiallyimportant to get something new intocustomers’ mouths for the first time.We also

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 57

CMI expects upwards of90,000 cartons of Kikuapples this seasons,which will be releasedto retailers in January.

PHOTO COURTESY OF CMI CORP.

Washington Apples.qxd:Layout 1 8/1/12 11:58 AM Page 5

Page 58: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Stemilt Growers LLC, headquartered inWenatchee, WA, says, “We have a Facebookpage for both Piñata and SweeTango; useTwitter and Mom bloggers to push informa-tion out; send product and information tofood editors at consumer magazines; get the

and characteristics of the variety. We noticedconsumers scanned the QR codes morefrequently on the new varieties compared to theQR codes off our bags.”

An effective display to introduce the Sonyaapple to its military customers won a GrandPrize for the North Island Commissary in SanDiego, CA, in the Sage Fruit-sponsored SonyaApple display contest with Los Angeles, CA-based Coast Produce. The store built amassive display of Sonya apples, incorpo-rating colorful POS materials and ads topromote the displays. Drew Peach, commis-sary director, explains, “Our display was20-by-8-feet, built at the entrance to thestores. Products such as apple juice andcaramel dip were cross-merchandised withinthe display. We also included signage withsuggestive usages, such as eating the applesfresh, pairing with wine and cheese, andbaking into pastries.We sold through 24 cases— nearly a whole pallet — during the March20 to April 4 contest.”

Finally, thinking outside the apple box iswhat many companies also do to get theirnew apple on the retail shelf and selling.Roger Pepperl, director of marketing at

58 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

apple on foodshows; send to chefs at culinary institutes; andeven advertise on billboards that generate 1to 5 million impressions a month. You’ve gotto keep chipping away in every avenue avail-able with new apples.” pb

PHOTO COURTESY OF SAGE FRUIT

Sonya apples are knownto be sweeter than Fujisand attract gourmetfoodie consumers.

Washington Apples.qxd:Layout 1 8/1/12 11:55 AM Page 6

Page 59: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Large eye-catchingdisplays withplenty of POSremind consumersavocados are ayear-round option.

No longer is the prime avocadopromotion time from Super Bowlthrough Cinco de Mayo. The fallis now a ripe time thanks to over-lapping supply from four major

growing areas: California, Mexico, Chile andPeru. This has boosted October throughDecember availability of avocados in the U.S.market from 159.9 million pounds in 2003 to281.8 million pounds in 2011, or a 76 percentincrease, according to the Irvine, CA-basedHass Avocado Board’s AvoHQ. It’s alsoincreased avocado contribution to producedepartment dollar sales 1.9 percent inQ4 2011,not far away from the peak 2.3 percent contri-bution in Q1 2012, according to the NielsenPerishables Group, a West Dundee, IL-basedfresh food consulting firm.David Merjimekyan, part owner and

director of produce operations for JonsMarketsInc., a 14-store chain based in LosAngeles,CA,states,“The advantage to selling avocados in thefall is the available supply, plus there are somany food holidays and sporting events thistime of year.”

1. Capitalize On SupplyAccording toGiovanni Cavaletto, vice pres-

ident of operations for Index Fresh Inc., head-quartered in Bloomington, CA, there once wasa gap fromOctober until Februarywhen virtu-ally no avocados were available in the U.S.market. That is no longer the case.“Early September, California and Mexico

will equally sharemost of the volume,”says RobWedin, vice president of fresh sales andmarketing for Calavo Growers Inc., in SantaPaula, CA. “California’s decline in volume willaccelerate in late October, but there will besupplies well into November. In October,Mexico will start at 55 percent share of market(SOM). By November, Mexico will be over 75percent SOM.”This fall, Mexican avocado growers antici-

pate that volumewill continue to increase withprojections to once again be the category leaderfor the 2012/2013 season, reports EduardoSerena, marketing director for the AvocadoProducers and Exporting Packers Associationof Michoacán (APEAM). At the close of the2011/2012 season in June, APEAM shippedmore than 750million pounds of avocados intothe United States, exceeding the amountexported in the previous year by more than 20percent. The continued rise in volume shippedfromMexico is the result of an increase in local

Four Ways To Sell MoreAvocados In The FallWith a year-round supply and plenty of produce-centered holidays, avocadoscan bring ring to your produce department in the fall months. BY CAROL BAREUTHER, RD

avocado production inMexico.”Peruvian avocados are enjoying their first

full season of import into the United States.Bill Tarleton, director of marketing andcommunication for Oxnard, CA-basedMission Produce Inc., comments, “Thisshould be a nice addition to have come in asCalifornia starts to wind down.”Cavaletto expects, “four million pounds a

weekof Peruvian avocados throughSeptember.”Chile will hit its peak around October,

making it excellent for fall promotions. ChrisHenry, director of sales and marketing forGiumarra Agricom International LLC, inEscondido,CA, shares,“We expect that supplieswill be similar to last year,withChilean arrivalsslightly delayed to account for late season Cali-fornia and Peruvian product.”Maggie Bezart, marketing director for the

Chilean Avocado Importers Association(CAIA), adds,“The drought inChile continuesto have a strong effect on the growing andproduction of our avocados. However,promotable volume will be available fromOctober through February, with an estimatedvolume projected at 135million pounds for theupcoming season.”Some shippers, such as Mission Produce,

PHOTO ABOVE COURTESY OF MISSION PRODUCEPHOTO AT RIGHT COURTESY OF THE CHILEAN AVOCADO COMMISSION

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 59

Fall Avocados.qxd:Layout 1 7/31/12 12:00 PM Page 1

Page 60: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

send out weekly e-newsletters to updateretailers. “This enables the buyers to key theirbuying to specific characteristics, know whento switch countries or when there are two sizeopportunities,” explains Tarleton.

2. Don’t Fall Behind InMerchandising Basics

One way to keep avocado sales rising in thefall is to offer customers more choices.APEAM’s Serena recommends, “Displaydifferent ripeness levels, bagged fruit, large andsmall sizes and different price points. Researchshows that many top-tier markets, like Cali-fornia and Texas, offer an assortment of threeavocado items per store per week: small, largeand 4-count bags.”

At United Supermarkets LLC, a 51-storechain based in Lubbock, TX, director ofproduce procurement, Tom Wilkins, reports,“We only sell 100 percent pre-conditioned orpre-ripened fruit.”

According to Serena, ripe avocados typicallysell twice as fast as unripe. “To maximize thisripe opportunity, identify fruit with stickers orsignage and display firm avocados separately,”he recommends. “Doing so will increase salesand prevent customers from squeezing andbruising the fruit and shortening its shelf-life.”

Calavo’s Wedin adds, “Avocados from Cali-fornia andMexico are ideal for ripening becausethe ‘time-off-tree’ is short and controllable.”

Bagged fruit is experiencing increaseddemand, adds Index Fresh’s Cavaletto, “dueto it being convenient.”

CAIA’s Bezart adds, “Bagged avocadosallow for easy display and reduce the frontchecker error.”

Avocado shoppers are looking for differentsize and price options.

Mission Produce’s Tarleton says,“Peru tendsto have larger size fruit, which is an excellent

60 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

PHOTO COURTESY OF APEAM

Fall Avocados.qxd:Layout 1 7/31/12 12:01 PM Page 2

Page 61: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Brooks Slimcado.qxd:Ad 7/27/12 4:43 PM Page 1

Page 62: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

62 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

prove beneficial.”A two-size program is in place at United

Supermarkets, and Wilkins specifies, “Wecarry a large size 40 and small size 84. We’llsell the large at $1.79 or 2-for-$4 in ourhigher-end markets, while we’ll sell thesmaller fruit 2- to 5-for-$1 in our Hispanicformats where it’s well received.”

3. Make Room With Themed DisplaysSupermarkets change their summer

displays throughout the store to those that arefootball-oriented in September [see relatedarticle on Tailgating, pg. 44]. CAIA’s Bezartnotes, “Sporting tailgating and homegatingevents — football being the No. 1 — are thelargest consumer usages for avocados.

and October.”Doug Meyer, vice president of sales and

marketing for West Pak Avocado Inc., inTemecula, CA, explains, “The size of theavocados appeals tomany of the heavy users asit is believed the taste profile is enhanced withthe larger fruit, while the price-consciousconsumers are more price-point focused andless concerned with the yield that the fruitprovides. Therefore, if you are in a well-devel-oped market, having a two-size program may

complement to the smaller fruit from Cali-fornia andMexico this time of year.”Lamb Hass is a Hass-like avocado variety

that is available and gaining traction in the falldue to its larger size. JanDeLyser, vice presidentof marketing for the Irvine-based CaliforniaAvocadoCommission (CAC),details,“The besteating quality for the LambHass runs from theend of July or beginning of August toNovember.Growers have started plantingmorewith a special emphasis on August, September

“The advantage to selling avocados in the fall isthe available supply, plus there are so many foodholidays and sporting events this time of year.”

— David Merjimekyan, Jons Market Inc.

Fall Avocados.qxd:Layout 1 8/7/12 12:29 PM Page 3

Page 63: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 63

can hold up to two cases of bulk avocados andis available in addition to the traditionaldisplay,”says Serena.“We recommend placing itin the bread aisle, deli aisle or near the cashregisters to encourage impulse sales.”

“The idea of capitalizing on football andother fall sports themes,” says Index Fresh’sCavaletto,“is to move merchandising avocadosbeyond a one-day holiday like Super Bowl andexpand it to a whole season or seasons.”

4. Holidays SellHolidays represented 26.3 percent of total

avocado dollar sales in 2011. While the SuperBowl in February was the biggest contributor,accounting for 2.6 percent of dollars, three fallholidays — Labor Day (2.1 percent), Halloween

avocados in secondary locations like the chipaisle, and even a third location like next to thebeer,” he details. “We’ve seen sales increases of40 to 42 percent in the fall by using theseshipper units.”

Bezart shares, “Last year, we had retailersplace secondary display bins with their toweringFrito Lay Chip displays throughout the store.Many of our retail partners offer display racksfor bagged avocados that are utilized in comple-mentary sections of the supermarkets. The keyis that a good maintenance program is set up forthe produce personnel to keep the displaysrotated and filled.”

This fall, APEAM has introduced a newcompact secondary display. “The new,hexagon-shaped Avocados from Mexico display

Avocados from Chile’s promotions are theperfect complement to build big displays ofavocados. This fall, the ‘Grab Some for theGame’ promotion and retail display contestswill feature over $120,000 in awards and prizes.New in-store signage is available to generateexcitement and commitment to our displaycontests and product promotion. Theenhanced signage campaign will also increaseshopper participation in our Chilean AvocadoLover’s Club consumer awards programs.”

Increase shelf space by displaying avocadosin multiple locations. At Jon’s InternationalMarketplace, Merjimekyan takes advantage ofshipper display units provided by the ChileanAvocado Importers Association.“These help toprovide extra display space and allow us to sell

Fall Avocados.qxd:Layout 1 8/7/12 12:29 PM Page 4

Page 64: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

“The size of the avocados appeals tomany ofthe heavy users as it is believed the taste profile

is enhanced with the larger fruit, while theprice-conscious consumers are more price-point

focused and less concerned with the yield thatthe fruit provides. Therefore, if you are in awell-developed market, having a two-size

program may prove beneficial.”— Doug Meyer, West Pak Avocado Inc.

good time to promote avocados. Therefore,retailers shouldn’t rely on last year’s ordersheets when planning ahead for holidaypromotions. In addition to Labor Day, thereare harvest festivals, chili cook-offs and avariety of opportunities to explore to builddemand in the fall.”This year, the CAC is focusing on ways to

put the green in the red,white and blue for holi-days such as Fourth of July and Labor Day.Radio in ad markets, point-of-sale materialsand themed recipeswill all be part of theCAC’sLaborDay retail-oriented promotions.Recipesinclude Firecracker Guacamole that hasmultiple produce ingredients and even uses amini watermelon as a bowl, and Picnic PotatoSalad and California Avocado Coleslaw, whereavocado substitutes for some of the mayon-naise, thus providing healthier fats per bite.

Halloween:“PromoteGreen forHalloween”is the theme of a month-long October promo-tion by Avocados fromMexico. “As Halloweencontinues to grow as a major holiday with

(1.7 percent) and Thanksgiving (1.5 percent)—added up to a significant 5.6 percent of sales.Mission Produce’s Tarleton reminds,“There areplenty of holiday-related promotional oppor-tunities in the fall, and now we have theavailability of fruit to take advantage of these.”

Labor Day: Avocados are on ad for LaborDay at Jon’s International Marketplace.Merjimekyan says, “It’s a time of picnics andbarbecues and avocados fit right in.”At United Supermarkets, Wilkins says,

“Avocados are a big deal whenever you havehamburger situations.We’ll run them on adand cross-merchandise at the same time.For example, we’ll display avocados withItalian red onions, lettuce and slicing toma-toes along with hamburgers. Or, we’ll builda big display of tomatoes-on-the-vine,jalapenos and avocados for guacamole, orTOVs with avocados, mozzarella, basil andolive oils for salads.”The CAC’s DeLyser acknowledges, “Any

opportunity to bring people together is a

64 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

Brooks Tropicals’Slimcado capitalizeson the latest healthand wellness craze.PHOTO COURTESY OF BROOKS TROPICALS INC.

PHOTO COURTESY OF MISSION PRODUCE

increased spending, we plan to build on the‘Spookamole’ campaign that was launched lastyear to position avocados as a must-haveHalloween party food,” reveals APEAM’sSerena. “We’re also extending efforts to theHispanic market in celebration of Dia de losMuertos, the Hispanic equivalent toHalloween.” This promotion will include aconsumer sweepstakes, full-page FSI deliveredto more than 13 million households onOctober 7, Facebook ads and a microsite withspecial guacamole recipes, party drinks andHalloween-themed dishes.

Thanksgiving: Turkey and avocado sand-wiches have soared in popularity ever sinceSubway ran its nationwide “Grab the Green”marketing campaign last summer. “Ride thiswave of fame by promoting avocados for useon turkey leftovers after Thanksgiving,”suggestsIndex Fresh’s Cavaletto.Mary Ostlund, director of marketing for

Brooks Tropicals Inc., in Homestead, FL,points out, “It’s the time of year that oneworries about eating toomuch and eating theright stuff. Lighter SlimCados reduce worries.Our ‘Hold the Mayo’ promotion is whereSlimCados star as a healthier sandwichspread, just in time for Thanksgiving turkeyleftovers. This promotion uses signage toconvey that SlimCados are a lower-fat way toadd a condiment to sandwiches. Retailers cancapitalize on this by cross-merchandising. Forexample, at in-store cooking stations or atdemos, put all the ingredients for a SlimCadoturkey sandwich. Or, merchandise loaves ofbread next to the avocado display. Displaysignage that connects the two as fixings for agreat turkey sandwich.” pb

Fall Avocados.qxd:Layout 1 7/31/12 12:11 PM Page 5

Page 65: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Blue Book.qxd:. 7/27/12 4:40 PM Page 1

Page 66: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

There’s a juiceout there tomatch everyconsumer’staste.

market. “As with any item in the producedepartment, juices must be profitable for us orthey will not be carried,” says Don Sutton, vicepresident of produce forAlbertson’s LLC,head-quartered in Boise, ID. “Category reviews ineach division ensure that any particular juiceitem deserves to be carried.”

Location! Location! Location!Deeper exploration into the ever-expanding

world of fresh juice shows that placementwithin the produce section is the key to long-term success.“There are a lot of companies outthere that want to be in produce,” states GregHolzman, CEO of San Francisco, CA-basedPurity Organic Holdings, a company that isowned/partnered with First Beverage, whichpresently sells a line of organic fruit juices invarious supermarkets. “The reason for this issimple: Juice makers see this as an easier entryinto the market. Things are so much tighter indeli, and grocery is usually held for shelf-stableitems. Also, in grocery, there is often a slottingfee required. That means companies arerequired to pay a fee for space on the shelf ifthey want to break into the market.”

“We’ve never experienced a slotting fee,”saysAllyn Brown, owner of Preston, CT-basedConnecticut Currant and Maple Lane Farms,one of the largest growers of black currants in

66 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

All About Fresh Juice In ProduceWith a continuous focus on health and wellness, juices placed inproduce departments are practically jumping into consumers’ carts. BY JOHN AIELLO

North America that also produces three vari-eties of juicemarketed under theCurrantAffairbrand. “But many manufacturers have tradi-tionally been required to pay a stocking fee to amarket, providing one or two free cases ofproduct per store as a one-time start up fee. It’sthe cost charged by a store for starting up witha new vendor.”

“I’ve not encountered slotting fees inproduce,” saysMichael D’Amato, national salesdirector for Fort Pierce, FL-based Natalie’sOrchid Island Juice Company, concurring withBrown’s assessment.“Produce is the best depart-ment in the store for business. In otherdepartments, slotting fees are integral to thewaythey operate. With traditional slotting fees,manufacturers pay tohave their product occupya ‘slot’ on the shelf. It’s like real estate, almost.”

In the world of the retailer, these juice prod-ucts often carry themselves, with shopperdemandgreat enough to allow for suspensionofslotting fees.“Some retailers charge slotting fees,but K-VA-T doesn’t,” notes Keith Cox, producecategory manager for K-VA-T Foods, anAbington, VA-based supermarket chain thatserves the states of Kentucky, Virginia andTennessee.“Weworkoff an every-day-low-price-program in order to get products on the shelf atthe best possible retail price for the consumer.”

In reality, only the juices that are in raw form

PHOTOS COURTESY OF BOLTHOUSE FARMS, CONNECTICUT CURRANT,ODWALLA, POM WONDERFUL AND NAKED JUICE

It used to be that the supermarketproduce section was reserved for farefrom the garden and orchard, whilejuices were stocked strictly in dairy ordeli, usually at the rear of the store. But

that was yesterday.A cursory tour through grocery store

produce departments these days often revealsmore than just tomatoes, apples, lettuce andpears.There,on a cooled shelf above the endlessbins of fruits and vegetables, often sits an arrayof different juices all battling for the dollars ofhealth-savvy consumers. Over the past decade,this vast line of vegetable and fruit-based“juices” has evolved, with product lines nowextending from coast to coast. These drinksoffer a substantial variety of nutritional choices,with many markets featuring as many as 10 or12 juice products in their fresh produce sections—manufacturers artfully pointing consumerstoward these processed forms of fruits andvegetables via a tacit mantra: If it’s in theproduce section, it must be good for you.

Good for you or not, the cold reality is thatgrocers won’t stock anything that the publicdoesn’t want and that doesn’t adequately covertheir margin. Obviously, this juice market hasgrown profitable enough to support a varietyof different niche manufacturers that arewaging war for a place within the same narrow

Juice.qxd:Layout 1 7/31/12 11:32 AM Page 1

Page 67: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

“Juice manufacturerscertainly prefer theitems to be carried

in the producedepartment because itbenefits their products’image to be displayed

with other ‘fresh’products.”

— Don Sutton, Albertson’s LLC

in a store wanting to buy something cold thatcan be consumed immediately.”

“But the produce section is not exclusivelywhere you will find Odwalla’s beverages,”stresses Susan Stribling, a spokesman for theHalf Moon Bay, CA-based company. “Theirplacement within a store depends on the indi-vidual retail arrangement. In some cases, youmay even find the brand inmore than one loca-tion, including the produce section and instand-alone coolers.”

K-VA-T’s Cox points out the fact thatmanyof these juices require refrigeration helpsmanufactures attain maximum visibility.“Consumers consider these juices to be fresherproducts because they’re refrigerated and inproduce. Thus, big companies go after place-ment in produce for this reason. Secondly,manufactures don’t want their products to getlost in other departments where they won’t beseen as easily as they are in produce.”

Holzman agrees. In his eyes, location is thekey to catching shoppers’ attention. Moreover,henotes produce arenot only capitalizingon thequality of the products, but are also artfullymaking use of swatches of space that wouldotherwise go fallow.“Stores are getting a sale in apart of the store that was not going to generateany dollars with produce anyway,” he reasons.“Beyond that, they also get to use juice as abanner to promote the ‘organic island.’”

Health SellsBusiness arguments aside, most of these

current juice lines nonetheless loom head-and-shoulders above those old-style canned drinksthat were the staple of every mother’s pantryfrom the 1950s through the 1990s. In retrospect,many of yesteryear’s juiceswere full of sugar andother preservatives— additives that blunted thevitamincontentof the fruit, rendering themlittlemore than sodawith a soft-sounding name.

“Naked Juice smoothies doneed to be refrig-erated, but we made the strategic decision to

many versions of the same thing all out to capi-talize on aworldwide obsession to‘eat organic.’“I think produce executives are only confusingconsumers with so many options,” contendsD’Amato of Natalie’s Orchid Island. “I thinkthey’re doing it because it’s profitable, but alsobecause it’s a misguided attempt to satisfy amore health-conscious consumer.”

Just as technology has evolved over the past25 years, so too has the structure of the grocerystore, with individual departments nowcompeting against each other for the chance toclaim shopper-dollars. “In the old days, juiceswent to the dairy case,” recalls ConnecticutCurrant’s Brown. “Now they are put inproduce, and referred to as ‘functional’ or‘nutrient-rich’ juices.But I think something elseis happening, too. In large chains, produce anddairy stand on their own and are always lookingfor a way to add revenue to their departments.In the case of juices, I think produce saw anopportunity to expand their revenue bykeeping them there.”

“Refrigeration is an absolute requirement forus,”asserts Dan Petry, vice president of foodser-vice sales for Lambeth Groves Juice Co., inVeroBeach, FL. “The main reason we’re in theproduce section is that our product is basicallyliquid produce. The orange juice wemake has ashort shelf-life — it’s limited to only 17 days bytheFloridaDepartmentof Citrus.But this is howit should be. Any fresh product not pasteurizedbelongs in the fresh section with produce.”

Careful inspection of how producesections are aligned and how little space thesejuice displays actually use, and one realizes it’sreally a can’t-lose proposition for the retailend of the train.

“Juice is seen as a grab-and-go item,” notesPurity’s Holzman, who entered the freshbeverage market in 1993. “Even though refrig-eration is not mandatory for a lot of theseproducts that are actually shelf-stable, refriger-ating the items helps because a lot of people go

and not shelf-stable (shelf-stable equates toproducts that have undergone a process knownas “ultra-pasteurization” or “sterile pasteuriza-tion”) need to be docked on the cold shelf inthe produce section. Even though many juicesdo not technically require refrigeration,manu-facturers nonetheless fight to feature their waresin this department because the produce sectionis strategically located in most modern-daysupermarkets — at the front of the store, theinitial threshold shoppers cross as they grabtheir baskets and unfold their lists.

And this is absolutely crucial, since the 21st-century generation tends to be impulse-driven,grabbing what they see, yielding to that ‘whimpurchase.’ Retailers have surely analyzed thisfact closely and are targeting these kinds ofshoppers for quick sales.

“Juice manufacturers certainly prefer theitems to be carried in the produce departmentbecause it benefits their products’ image to bedisplayed with other ‘fresh’ products,” notesSutton of Albertson’s, “while the temperaturerequirements limit the display possibilities inmost other areas of the store.”

“The produce section is a place in thegrocery store where consumers know they arebuying the purest, freshest products,”saysMarkOrsi, vice president of beverage sales for POMWonderful’sNorthAmerica division, located inLos Angeles, CA. “POM has a ‘tree to-bottle’philosophy, and the produce section is whereconsumers expect to find these unadulteratedproducts. They expect they are buyingpremium, high quality products when shop-ping in produce,”Orsi continues.“Unlike othersections of the store, the juice category inproduce is pure juice from all-natural ingredi-ents. Consumers shop here because they arelooking for the healthiest options withouthaving to check the label.”

Still, other juice producers don’t see thepicture the same as Orsi, believing that theproduce shelves are being clogged with too

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 67

Juice.qxd:Layout 1 7/31/12 11:33 AM Page 2

Page 68: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

“Themain reasonwe’re in the produce sectionis that our product is basically liquid produce...

Any fresh product not pasteurized belongs in thefresh section with produce.”

— Dan Petry, Lambeth Groves Juice Co.

nutrients are located in—or just under— theskin of the fruit; including that pulp in the juice,which provides maximum nutrient density.Since a bottle of juice may contain the equiva-lent of several pieces of fruit or vegetables, it isa quick and convenient way to get the recom-mended daily servings.”

These are all sentiments thatOdwalla’s Stri-bling echoes in her observations. “There’s apositive association with merchandising theproduct in proximity to many of the ingredi-ents— fruits and vegetables— that are used inOdwalla beverages. It’s a good fit because juicesmade from fruits and vegetables are an appro-priate complement to the fresh produce section.It reminds consumers of the connection andalso gives them a one-stop-shopping option.”

organic ingredients and refined processingtechniques collectively meant to preserve thenutritional value of the beverage. D’Amatoasserts, “At Orchid Island, we don’t use flavor-packs. We don’t fool around with our juice.What comes out of the fruit goes into the jug.”

“I think that the popularity of juices isdriven by their close association with Super-foods,” adds Sutton of Albertson’s. “Many

place them in the produce section versus thedairy or chilled juice aisles,”saysVictoriaNuevo-Celeste, director of brand marketing for theMonrovia,CA-headquartered company.“NakedJuice carries three servings of fruit or vegetablesin every 15.2-oz. bottle, with absolutely nopreservatives or added sugar, so we feel it fits inbest in the fresh produce section.”

Today, many manufacturers stress these

68 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

Understandably, with so many quicksales at stake in a market that showsno signs of regression, companies

continually vie for position, often irritatingthe competition along the way. “There aresome companies out there that try and getinto produce with shelf-stable products,that don’t need refrigeration,” laments AllynBrown, owner of Preston, CT-basedConnecticut Currant and Maple Lane Farms.“They shouldn’t take space in produce ifthey don’t need to be there.”

If human nature guarantees one thing,it’s that if money is to be made, everyonewill want their piece of the proverbial pie. Inthis case, with so little shelf-space availablein produce to house a product for which thepublic has developed an unquenchablethirst, are some juice-makers now stretchingthe definition of “fresh” to land a piece ofthe store’s premium real estate?

“The produce executives of Americaneed to understand that consumers are veryconcerned with healthy products,” saysMichael D’Amato, national sales director forFort Pierce, FL-based Natalie’s Orchid IslandJuice Company. “The perception is that thejuices in the produce aisles are healthyalternatives. That’s why the produce aislebusiness is booming. Consumers are shop-ping this aisle looking for something that’shealthy and not full of preservatives. But Ithink the reason a lot of these juices sell isthat consumers are being fooled a little bit.In reality, a lot of these products are madefrom concentrates and contain flavoringsand preservatives. Why would you enrich apure fruit drink?” pb

MISLEADING THE SHOPPER

Side

Not

e

Juice.qxd:Layout 1 7/31/12 11:33 AM Page 3

Page 69: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

business. Fruit goes bad. So we started to thinkabout ways to deal with this and serve anothermarket, creating a pasteurized product that wasshelf-stable that would be good for a year. Itmade sense to take these process-grade piecesand use them as juice.”

Here To StayThe journey of fresh juice from the dairy

aisle to the produce section took decades, asstore managers and consumers slowly recus-tomized their attitudes in order to accept thenew ways farmers and manufacturers werebringing fresh drinks to market. It was a longtime coming, but the juice bottles that nowframe thosewire-mesh bins in produce sectionsthroughout the country are destined to stay

A Broader MessageAside from the profitability of selling fresh

juice, there is also a socially conscious elementto the process. Even though most consumersdon’t ruminate on it, everything that comes tothe produce department is not everything thefarmer harvested from his crop.

Out of every ton of produce, there is often300 to 400 pounds of ‘process-grade’ fruit —items that still taste good and are still safe to eat,but that can’t be sold as show-quality pieces inthe grocery bins. In essence,many of these juicecompanies brew pieces of food that mightotherwise go to waste into a valuablecommodity. “We come from a fruit back-ground,” says Purity’sHolzman.“Mybusiness ismoving fruit. And there’s a lot of loss in this

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 69

right where they are.“I think the fresh juice market has grown

and will continue to grow,” says Lambeth’sPetry. “Food is trending toward fresh, naturalhealthy products. The organic section isgrowing by the day. Lifestyles are changing andpeoplewant to eat and drink healthier.They arelooking for alternatives.”

Cox of K-VA-T agrees.“It’s the same reasonthe organic category has taken off and thereason the gluten-free category has taken off,”he says, pointing to the core of why these juiceitems are now so popular.“Themore informa-tion the consumer receives prompts them to eatmore nutritiously. I think this is one of thegreatest driving forces behind the expansion ofthe juice line in produce.” pb

Juice.qxd:Layout 1 8/1/12 3:09 PM Page 4

Page 70: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

70 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

CHICAGO MMAARRKKEETT PPRROOFFIILLEE

CHICAGO: A Town AsDiverse As Its Produce

With a centralized location, plenty of local farms and a thrivingwholesale, retail and foodservice market, Chicago plays an important role in the American produce market. BY LISA WHITE

Chicago is known for its tall skyscrapers, Lake Michiganbeaches, restaurants, nightlife and world class museums. Butit is the melting pot of ethnicities and nationalities that makethe country’s third largest city of close to three million peoplethe most unique.

The diversity of Chicago’s 77 neighborhoods is evident and celebrated. Interms of demographics, the city is 32.4 percent African-American, 31.7percent Caucasian, 28.9 percent Hispanic and 5.4 percent Asian, according tocity-data.com. In terms of ancestries, the city’s population is 7.3 percentPolish, 6.6 percent Irish, 6.5 percent German, 3.5 percent Italian and 2 percentEnglish. Approximately 628,900 of its residents are foreign-born, with 12.2percent from Latin America, 5 percent from Europe and 3.9 percent from Asia.It’s this mixture of cultures and centralized location that keeps Chicago’sproduce industry thriving.

“Chicago is a logistically invaluable city for the entire produce industry,”says Damon Marano, vice president of business development for wholesalerAnthony Marano Co. “We’re the last stop before the East Coast, we have alarge population and this is a produce city. Everyone benefits when truckscome into Chicago. We have the ability to move a lot of produce through thistown, and vendors all over the country realize that.”

To provide a better perspective of this town’s girth, the city, which wasincorporated in 1875, covers an area of more than 227 square miles, and sits

578 feet above sea level on the southwestern shores of Lake Michigan, thefifth largest body of water in the world.

Most of its residents — more than 70 percent — live and work in the city,even though the cost of living index is 107.7, more than the U.S. average of100, according to city-data.com.

Despite the economic challenges, the area remains a hotbed for inde-pendent markets hawking local and organic produce, as well as a bevy ofworld-class restaurants that highlight unique fruits and vegetables.

A Retailer’s ParadiseThere are close to 1,500 grocery stores in the city, or almost three for

every 10,000 people, according to city-data.com.An upscale family-owned neighborhood supermarket with locations in five

Chicagoland suburbs, Sunset Foods, headquartered in Highland Park, IL, wasfounded in 1937 and is known for its wide selection of organic produce. “Ourcustomers are looking for variety,” says Vince Mastromauro, Sunset Foods’director of produce operations. “Right now, stone fruits like white peachesand nectarines are in season.” He says it’s important for retailers to alignthemselves with the right growers because it pays off at the store level.“Chicagoans are basically looking for the right fruit at the right time, andretailers need to offer it,” Mastromauro says.

It helps to be loyal to growers and brands that offer quality and consis-

Chicago.qxd:Layout 1 8/6/12 5:37 PM Page 1

Page 71: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Marano.qxd:Ad 7/27/12 4:59 PM Page 1

Page 72: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

72 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

RREEGGIIOONNAALL MMAARRKKEETT PPRROOFFIILLEE :: CHICAGO

“Chicago is a logistically invaluablecity for the entireproduce industry.We’re the last stopbefore the East Coast,we have a large popu-lation and this is aproduce city. Everyonebenefits when truckscome into Chicago. Wehave the ability tomove a lot of producethrough this town, andvendors all over thecountry realize that.”

— Damon Marano, Anthony Marano Co.

tency. “We have increased our sales by building abrand,” Mastromauro says. Sunset Foods hasrecently begun offering private label produce,including mixed melons, cantaloupe and honeydewin one-pound containers. “These are in our value-added section, which we have just added,” hesays. “We have our own fresh fruit branding withinour departments.”

In the summer months, it can be difficult forstores like Sunset Foods to go up against the area’smany farmer’s markets. In the city alone, there areclose to 50 in the various neighborhoods. One

would be hard-pressed to find a Chicago suburbthat does not have a farmer’s market in thesummer. “We have developed a strong rapportwith customers, which helps us go up against thefarmers markets,” Mastromauro says.

The store also has created a marketing programcentered around its local and organic produce thatit calls its “Farmer’s Market.” This incorporatessigns and POP materials. The company also isrelying more on social media, including e-mail andFacebook, to increase the buzz for its offerings.“We promote the fact that we buy local, which, for

us, means purchasing from Midwestern states,”shares Mastromauro.

Sunset Foods also recently aligned itself with alocal grower, Didier Farms, of Praireview/Lincolnshire, IL, which is well known in the area.“We’re not the least expensive,” Mastromauroadmits, “but our produce offers quality, flavor anda great shelf-life.”

Another long-standing independent retailer,Chicago-based Pete’s Fresh Market on the city’sSouth Side, has been in business since 1974. Thestore purchases the majority of its produce fromlocal suppliers and breaks down, hand-cleans andre-bands products on site to remove dirt andensure there is no decay or spoilage.

Independently owned and operated on thecity’s north side for the last decade, NewleafNatural Grocery Inc., based in Chicago, is adifferent type of concept. “We began as a buyingco-op for the Chicago Waldorf School, whichembraces the philosophy of utilizing whole andorganic foods,” says co-owner Karen Keane. Theoperation morphed into a neighborhood grocerythat services customers in Chicago’s north RogersPark area.

The store is well known for its produce boxsubscription program, which Keane describes as amodified CSA (Community Supported Agriculture).Traditional CSAs charge between $300 and $600 fora share of a farmer’s harvest. At Newleaf, becausepatrons purchase organic produce by the box, itsfruits and vegetables are more affordable. Boxesinclude a variety of in-season fruit, such as Ladypeaches, Sunburst squash and spinach for $15.

The store is a strong advocate of local family-owned farms and strives to fill its boxes and

Chicago.qxd:Layout 1 8/6/12 5:38 PM Page 2

Page 73: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 73

Pappas, president of Coosemans Chicago Inc., awholesaler located in the CIPM. “Competitionmakes you sharper, and it’s what made us thriveand be better. In this business, we will always seea certain percentage of wholesalers that are forcedout after a certain amount of time. It doesn’t matterhow much you do, how great a buyer or salesmanyou are, or if you have the highest quality fruits andvegetables. It’s not a sale until you get paid.”

The struggling economy has been a big factorimpacting business at the CIPM. “People arebuying conservatively, watching pennies and

the market is one of the few of its kind left in thecountry. Its services include ripening, customrepacking and packaging, full truckload services,forward distribution and daily delivery. Cartagecompanies on site offer product delivery to areastores and restaurants.

The CIPM is a competitive marketplace and, asa result, the number of merchants who are basedhere has been shrinking. “When we came in, therumor was that there would be attrition, and theredefinitely was, but when a competitor goes out ofbusiness, we don’t feel good about it,” says Mark

shelves with locally grown produce. During Illinois’growing season, most produce is from local farms.In the winter, items are pulled from California,Texas, Florida and Mexico. “In terms of trends, non-GMOs are huge,” Keane says. “We expect thepopularity to continue spreading to big cities.”

A Thriving Wholesale MarketChicago has been a vital transportation and

distribution point since the city was founded, andin the past, was an important link between theGreat Lakes and Mississippi River waterways. Dueto its centralized location, the city remains one ofthe world’s busiest shipping hubs. In 1959, Chicagobecame the port it is today when the St. LawrenceSeaway, which provides a direct link from the GreatLakes to the Atlantic Ocean, was created. Marine,rail and overland freight are all handled through thePort of Chicago.

The area around Chicago is well traveled. Thestate of Illinois maintains the third-highestcombined mileage of railroads and paved highwaysin the country, according to city-data.com. Approx-imately 750 motor freight carriers serve themetropolitan area, and trucking companies shipmore than 50 million tons of freight each year; rail-roads average more than 40 million tons. Chicago’sairports handle more than one million metric tonsof cargo annually.

The city’s location near the center of thecountry; accessibility to water, air and rail trans-portation; and extensive roadways all add up to athriving wholesale scene in terms of produce.

Wholesale fruits and vegetables are centeredon the Chicago International Produce Market(CIPM), which provides a one-stop-shop forMidwest produce buyers that include those repre-senting area supermarkets, independent markets,chain restaurants and mom-and-pop eateries.Comprised of 22 independent produce merchants,

RREEGGIIOONNAALL MMAARRKKEETT PPRROOFFII LLEE:: CHICAGO

PHOTO

COURT

ESY

OF

LETT

UCE

ENTE

RTAIN

YOU E

NTE

RPRIS

ES

Chicago.qxd:Layout 1 8/6/12 5:38 PM Page 3

Page 74: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

74 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

ground or air. “Wholesalers are the link betweenthe farms and the customers and help to advancethe growth and availability of the local movementin the Midwest region,” says Angie Bader,marketing coordinator at Chicago wholesaler TestaProduce Inc., a CIPM merchant. “Since most farmsare many miles and sometimes states away,wholesalers make it easier for foodservice entitiesto get the product they need, with the highestquality and best food safety practices available.”

Another advantage to buying wholesale isconvenience to customers. “Buyers don’t have towork with multiple vendors for their orderingneeds, when they can work directly with a whole-saler. It saves them time, money and overall carbonfootprint by consolidating their vendor options,”Bader says.

Demand For LocalWith the spotlight on food safety and sustain-

ability in recent years, local produce is a growingsegment in the Chicago area. “In the case of localproduce, wholesale is likely the easiest and safestoption for customers,” Bader says. “Having acompany facilitate the connection between thefarm and the customer is the most effective way toget what fruits and vegetables are needed andensure that the proper food safety procedures have

RREEGGIIOONNAALL MMAARRKKEETT PPRROOFFIILLEE :: CHICAGO

dollars and looking for value,” acknowledges NickGaglione, president and owner of Dietz & KolodenkoCo., a produce wholesaler located in the CIPM.“People are now focused on not overextendingthemselves.” Dietz & Kolodenko’s hottest sellersare soft fruit likes peaches, nectarines and plumsout of California, Mexican grapes and importedapples from New Zealand and Chile.

Still, the market is known as the place forbuyers who want to cut out the middle-man.“CIPM is still a very competitive market, but itdoesn’t offer as much value-added items as in thepast,” says Anton Marano, the third-generationpresident and CEO of Anthony Marano Co. “Whole-salers who are not good at what they do and can’tservice customers won’t stay in business.

Staying SalientDiversification has been one way wholesalers in

the terminal market have attempted to set them-selves apart. In addition to fresh fruits andvegetables, some CIPM merchants have expandedtheir offerings to include nuts, dried fruits, herbs,spices and specialty dry goods.

Service also has been expanded to provideadded convenience for buyers in the area and inter-nationally. For example, delivery can be arrangedfrom the market to anywhere in the world via

Chicago.qxd:Layout 1 8/6/12 5:38 PM Page 4

Page 75: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Centre 4 Produce.qxd:. 7/27/12 4:46 PM Page 1

Page 76: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

76 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

source produce locally. “Sourcing produce fromneighboring states is easier for me in terms ofprocurement,” says Tim Fleming, Jr., executive vicepresident and general manager of vegetables atStrube Celery & Vegetable Co., a Chicago-basedwholesaler. “I can plan ahead a day or two, ratherthan four to five days. Our location is beneficial,with Midwest farms all around us.”

Strube’s location in the city also is beneficial interms of logistics and transportation. “It’s a goodhub. It can be difficult for people to send trucks todifferent places around the Midwest, but we canbe innovative with cross-docking,” Fleming says.“We can consolidate shipments here and have

been put in place.”The biggest effect in terms of proximity to local

growing regions is the difficulty in defining ‘local.’Some farms are 200 miles away in the same stateand others are 150 but across state borders. Inaddition, people have different ideas and expecta-tions of what they want local to be, so it’s difficultto always fit the criteria that various people havethat meet their local needs and wants.

“We are able to work around the distance ofthe farms, as there are several great farms that wework with that are not located too far from us inIllinois, Michigan andWisconsin, but we make sureto feature a wide array of farms and products to

meet various demands,” Bader says. “We makesure that we represent several different farms fromvarious growing locations to support as many localfarms as possible and meet volume expectationshad by our customers.”

In terms of locally grown produce, there ismuch room for improvement. A study by the Illi-nois Department of Commerce and EconomicOpportunity showed that of the $14 billion Illinoisspent on fruits and vegetables in 2009, only 6percent of it was grown in the state. Illinois hasthe ability to grow 85 percent of that volume,according to the department.

Summertime is obviously the easiest season to

RREEGGIIOONNAALL MMAARRKKEETT PPRROOFFIILLEE :: CHICAGO

The foodservice industry in Illinois produces$19.2 billion in annual sales and is thelargest private sector employer in the state,

with 501,000 jobs projected in 2011, reports the Illi-nois Restaurant Association. There are 3,516full-service restaurants in the city alone, accordingto city-data.com.

Produce is a hallmark of Chicago’s foodservicesegment, and there is one innovative partnership inparticular capitalizing on the popularity of buyinglocal. Chef Marc Barnard of Chicago’s renownedLettuce Entertain You Enterprises (LEYE) alwayshad an interest in the produce industry. He studiedhorticulture in college and worked in a greenhousewhile in high school. It’s always been a dream of histo own a farm. He oversees LEYE’s Big Bowl chain,which sources its produce from Heritage PrairieFarm in LaFox, IL.

After a fundraising dinner that included fiveLEYE chefs cooking at the farm, Barnard looked intothe restaurants’ produce needs to see if they wouldwarrant leasing some acreage for planting. “Wefound that most of the produce we utilized on themenu was basic, including 400 pounds of lettuce aweek, in addition to a good amount of carrots andonions,” Barnard says. “There were some specialtyitems, too, and everything we use is organic, whichcreated a challenge, in terms of sourcing produce.”

Barnard set up a program where up to 30 of

LEYE’s staff, including chefs, servers, managers andcooks, went out to the farm at one time to see theprogress of the crops. Throughout the growingseason, Big Bowl employees assist on the farm —hoeing, weeding and transplanting crops. “This way,people outside of the leadership roles knew aboutthe program and were able to get some exposureto become farm-fresh food experts and ambassa-dors,” Barnard says.

LEYE even held its annual chef’s conference atthe farm. On the final day of the event, 130 guestswere in the field eating farm-fresh food. Due to theprogram’s success, LEYE created an RSA (Restau-rant Supported Agriculture) program, which is avariation of retailers’ CSAs. With this arrangement,the restaurant group would deposit $15,000 — or10 percent of the $150,000 worth of produce itpurchases annually — to assist the farm with itsexpenses. “We would get money credited backevery time we purchased our fruits and vegetables,”Barnard says.

In addition to Heritage Prairie Farms, LEYE alsoinstituted the program with Kinnikinnick Farm inCaledonia, IL; Hazzard Free Farm in Pecatonica,outside of Rockford, IL; and Growing Home, aChicago-based farming program that reclaims landand helps put unemployed people back to work.“We’ve always worked with farmer’s markets andthen we had people deliver the produce to us,

before getting Heritage Prairie to grow our food.Now we have four farms with the commitment that,if they grow food, we will buy it,” Barnard says. “Wepay a premium, so we expect quality product.”

When Barnard was informed by Heritage Prairiethat a nearby 51⁄2-acre farm was for sale, he beganthe journey of fulfilling his lifelong dream. AlthoughBarnard purchased the farm as a personal invest-ment, the chef is growing produce that is used inLEYE’s restaurants. This includes sugar snap peas,squash and beans. Big Bowl recipes require a lot ofgreens, as well. “Black kale is a hot item right now;it has a wonderful Tuscan taste,” he says. “Also,garlic scapes have become popular. These have amild garlic flavor and the texture of green beans.Winter spinach is popular, too, as is organic food, ingeneral.”

In their quest to include more local produce onthe menu, a number of Chicago restaurants areplanning urban rooftop gardens to grow fruits andvegetables for their dishes. At press time, LocalRoot Cafe, in the Streeterville neighborhood ofChicago, was on the verge of opening its doors. Thiseatery is planning to create a 20,000-square-footrooftop garden that would be the largest of its kindin the Midwest. In addition, Fifty/50 RestaurantGroup is partnering with the Bleeding Heart Bakeryand Café to open a rooftop garden and restaurant inthe city. pb

Innovative Foodservice Solutions

Chicago.qxd:Layout 1 8/6/12 5:38 PM Page 5

Page 77: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 77

of the country don’t have the number of inde-pendent chains we have in Chicago. This isbecause there is opportunity for these operationshere,” Anton Marano says. “The unique offeringsin these stores allow independents to competewith big box and chain stores. These retailers arebetter at what they do and willing to make biggerinvestments to compete.”

Flexibility Is KeyStill, to adapt to changing and challenging

market conditions, area wholesalers and distribu-tors have had to be flexible. “We now need to takeon any produce-related business, including food-service, value-added, retail and wholesale,” Damon

In addition, chain stores from other regions inthe Midwest are moving to Chicago due to theopportunities in this market. Case in point isMariano’s Fresh Market, a high-end chain ownedby Roundy’s that now has two locations in thecity with another three in Chicago’s suburbs. Itsexpansive produce department was recentlyrecognized by the Produce for Better Health Foun-dation. Its department includes more than 10varieties of mushrooms, peppers and tomatoes,in addition to imported specialty fruits andvegetables; organic produce; fresh-cut items; andfresh-squeezed juice.

Independent markets are successful in this areadue to the variety of produce offered. “Other parts

people pick items up from our warehouse, ratherthan go to five different locations around theMidwest.” Last year, Strube expanded its businessto include herbs. The company partnered with alocal greenhouse that supplies basil and rosemary.

Chicago wholesalers also are seeing moreconsumers looking to support local farmers andcommunities through farmer’s markets. In thesummer, these temporary selling stations come intoplay and thrive on locally grown, seasonal produce.

The Growth OfIndependent Retailers

Along with an increased focus on local produce,the Chicago region has experienced the continuedgrowth of independent retailers that focus on hard-to-find, ethnically diverse produce. “We attributethis to retailers being able to build stores that arebetter representatives of what they can offer,” saysDamon Marano. “Independents are investing morein their stores, so an $8 million operation cancompete with any national chain. These marketsare forces to be reckoned with.”

Independent retailers also are expanding theirreach. Those that once had two to three storesnow have four or five locations, for example. “Wehave found that there are a few independents thatare getting more powerful,” says Gaglione of Dietz& Kolodenko. “These operators have gone from twoto 10 stores, which makes them a volume buyer.Those buyers are down at the market between fourand five days a week. These stores don’t keep alarge inventory, so produce on site is rotated tokeep it fresh. Independents in the area are fillingholes quicker than larger chains.”

RREEGGIIOONNAALL MMAARRKKEETT PPRROOFFII LLEE:: CHICAGO

“Wholesalers are thelink between the farmsand the customers andhelp to advance thegrowth and availability of the localmovement in theMidwest region. Sincemost farms are manymiles and sometimesstates away, wholesalersmake it easier for food-service entities to getthe product they need,with the highest qualityand best food safetypractices available.”

— Angie BaderTesta Produce

Transportation ChallengesProduce transportation continues to be chal-

lenging, reflecting the rest of the country. “Inbusiness, generally it seems like things were

after the 2008 housing market and financial marketcrash. We’re still trying to come out from underneathit,” says Fred Plotsky, president of Cool Runnings, aproduce transportation company in nearby Kenosha,WI. “In 2010, things were coming around and werepicking up. We felt momentum in the business. By themiddle of last year in May or June, it seemed like thebrakes were put on again. It will seem like there’s agood start, but then there is no steam behind it.”

There are fewer businesses in Chicago due to theeconomic downturn, and, as a result, trucking compa-nies are significantly downsizing. “Companies thatused to have 20 trucks now have only eight, andsmaller guys with six to eight trucks are down tothree. This has made produce transportation evenmore expensive,” Plotzky explains.

Freight rates also have increased. The averageprice for a load out of California is now $5,800 versus$1,500 in years past. “Even though everything is more

expensive, there is still not enough money to coverfuel and repair costs,” Plotzky says. “Every year,companies are required to spend money to updatetheir trucks to comply with California’s truck regula-tions.” The regulation requires diesel trucks andbuses that operate in California to be upgraded toreduce emissions, according to the California Envi-ronmental Protection Agency.

“Trucking is a huge issue, even in the beginning ofsummer,” says Strube’s Fleming. “Trucks out of Cali-fornia are very expensive. This is a trickle-downeffect, and everyone has to fight with it. Everyone is paying the same for trucks, so there is not a wide variance.”

Despite the challenges, Chicago is the hub of theMidwest. With its access to the East and West Coasts,in addition to the southern and northern states, thisarea is logistically suited for produce buying andselling. With independent markets and restaurantsexpanding in the area, there will be increased oppor-tunities for those in the fruits and vegetablesindustry. pb

Chicago.qxd:Layout 1 8/6/12 5:39 PM Page 6

Page 78: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

78 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

Marano says. “We’re designed to be agile. If wesee the industry going one way, we can adapt toservice our customers.”

With more foodservice chains focused onproduce due to the media attention on healthiereating, there are more opportunities for whole-salers. “Restaurants are trying to incorporate moreproduce on their menus and will highlight oremphasize what they are using,” Damon Maranosays. “This puts more of a value on the ingredients.For example, McDonald’s using blueberries in itsparfaits and oatmeal helps drive this commodity.”

Despite everyone’s best efforts, the economyhas taken its toll on all businesses, includingChicago wholesalers. “It’s been a struggle moreand more during the past three to four years, butthose wholesalers who continue working hard forcustomers, pay attention to details and communi-cate are doing well,” says Coosemans’ Pappas.“Companies like ours may have to work harder, butthe business is still out there.”

Formerly a specialty house, Coosemans hasdiversified to keep pace with the market and alsofocuses on conventional produce. “We have agreat Michigan shipper and are looking forward togetting more local produce in,” Pappas says. “Witha good quality shipper, we can really make it cost-effective by making a fair markup and passing the

savings on to customers.”This can be challenging, especially with the

rising cost of fuel and transportation. “With regu-lations and fuel costs, anything you can get local issomething you can pass on to customers,” Pappassays. “Also, being central is an advantage for us.Anything we can do to eliminate freight from Cali-fornia and air shipments is an advantage.”

In addition to being centrally located, Chicagooffers demographic diversity, which wholesalerssay equals greater opportunities in sellingproduce. “We have a large cross-section of

RREEGGIIOONNAALL MMAARRKKEETT PPRROOFFIILLEE :: CHICAGO

Thanks to its central location, the CIPM is a hub for buying and selling produce that will make its wayaround the country.

everyone here, which is the city’s biggest advan-tage,” Gaglione of Dietz & Kolodenko says. “Thereare a variety of people who eat many differenttypes of fruits and vegetables.”

The area has large Hispanic, eastern Europeanand Asian populations, which are known for theircuisines that include a variety of produce. “Whetherit’s simple pizza and basil to high-end steak housesusing specialty potatoes, lettuces and mini vegeta-bles, it’s a big city with big opportunities,” Pappassays. “Chicago is a great city that offers opportuni-ties to reach different customers.” pb

Chicago.qxd:Layout 1 8/6/12 5:39 PM Page 7

Page 79: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Onion OpportunitiesBy educating consumers and properly merchandising onions,produce departments can capitalize on this lucrative segment. BY LISA WHITE

Onions may be one of the mostversatile vegetables available interms of usage, which equalsmuch opportunity from a retailperspective. Yet, the ubiquitous

commodity is typically taken for granted, andconsequently, easily overlooked in supermarketproduce departments when it comes tomarketing and merchandising. This is a bigmistake, as the result may be the loss of poten-tial revenue.This is one produce category where educa-

tion at point of sale is key. “Today’s researchillustrates that usage is one of the key decisiondrivers at the point of sale,” saysMarty Kamer,vice president of Keystone Fruit MarketingInc., based in Greencastle, PA. “Consumerswant to know how to utilize the products theyare buying. Recipes, educational videos anddemos are all ways retailers can capitalize onthe onion category.”Onions are the third largest vegetable

commodity — at around 20 pounds per year— in terms of per-capita consumption in theUnited States, according to the U.S. Depart-ment of Agriculture.Onion consumption hasincreased more than 63 percent in the pasttwo decades — from 12.2 pounds per personin 1983, to an estimated 20 pounds perperson in 2008.Much of the increase can be attributed to

growth in the prepared food segment.“Approximately 15 to 18 percent of onions areprocessed for use in prepared food items, suchas salsa, soups and appetizers,”Kamer shares.The increase in onion consumption also

may be due to the vegetable’s health benefits.Onions provide a number of nutrients thatmany are not aware of, such as high levels ofvitaminC.They are also low in sodiumand fat-free, and a good source of dietary fiber and folicacid. They contain calcium and iron, and havea high protein quality. Onions also containquercetin, a flavonoid in the category of antiox-idant compounds, which has been shown toeliminate free radicals in the body, inhibitatherosclerosis and coronary heart disease,protect and regenerate vitamin E and inactivatethe harmful effects of chelate metal ions.There is no disputing that onions are a

staple in most consumers’ kitchens. Whileseasonality can affect sales, the average onionsales per store per week are reportedly steady.Still, a key challenge for retailers is educatingconsumers about the flavor profile of each typeof onion to help garnermore attention for thisversatile vegetable.

Attracting AttentionSuppliers say there are a number of ways to

increase the onion category’s profile in theproduce department.“They are one of the best

PHOTO COURTESY OF VIDALIA ONION COMMITTEE

Onion commodity boardssuch as the Vidalia OnionCommittee provide retailerswith plenty of eye-catchingPOS and display materialsto promote.

categories to cross-merchandise SKUsthroughout the produce aisle,” says DerrellKelso Jr., president and co-owner of OnionsEtc. Inc., based in Stockton, CA.Because consumers commonly store these

vegetables on the kitchen counter, Onions Etc.has developed “Kitchen Counter Merchan-dising” programs for retailers. “The days ofset-it-and-forget-it are done,”Kelso says.“Themore people eat at home, themore onions theybuy in the store.”To make an impact in this segment,

produce department offerings can include upto 10 onion varieties, including yellow, red,white, sweet yellow, pearls, boilers, Cipollinis,as well as organic yellow, red andwhite onions.The key is to educate consumers on the use ofthe different onion types at point of purchase,which will help increase sales. In addition, themore points of purchase for these products inthe department, the better to draw attention tothese items.“One of the easiest ways to bring more

attention to the onion category is to placesecondary smaller displays throughout thestore,” says Greg Smith, marketing andcommunications manager at Glennville, GA-based Bland Farms LLC.“For example, retailersmight place secondary onion displays in themeat department. Displaying onions withmeal ideas and recipes that include these

MERCHANDISING REVIEW

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 79

Onions.qxd:Layout 1 8/7/12 1:09 PM Page 1

Page 80: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

menu ideas.”It’s also important for retailers to stay in

touch with resources like commodity groups,which can provide marketing and merchan-dising tips for onions. “We provideback-of-house storage and handling posterswith kits for individuals working on theproduce floors daily,” says Wendy Brannen,executive director and marketing director ofthe Vidalia, GA-based Vidalia OnionCommittee.“It’s also essential to remember themerchandising basics, such as keeping a clean,neat display.”

Proper handling, especially for softer sweetonions like Vidalias, is key. This variety doesnot tolerate being dumped in a display bin orstacked more than five feet high.

Unclear labeling also is a commoncomplaint with onions. Customers should nothave to dig through a bin and locate a PLUsticker to find the variety they are seeking.Displays should be clearlymarked and signagemust be visible.

“Although the onion category is oftenunderappreciated, it has a nearly unlimitedpotential when you stop to look at how manymeals include onions in one form or another,”says Ralph Schwartz, director of value-addedmarketing and category management forIdaho Falls, ID-based Potandon Produce LLC.

Retailers can capitalize on this potential byhighlighting the onions’ origins, flavors anduses. This is one category where educatingconsumers at the retail level is essential. “Thebiggest thing retailers can do to bring moreattention to the onion category is not take itfor granted,” says Matt Curry, president ofCurry & Co. Inc., headquartered in Brooks,OR.“By understanding the customer base andconsumer demographics, you can really

MERCHANDISING REVIEW

the onion’s value and usage possibilities.”Co-promoting onions with other fresh

produce items that are typically used togetheris another way for retailers to market andmerchandise this vegetable.This is onemethodwhere the sale of one produce itemmay attractattention and lead to the sale of another.According to RickAntle, president andCEOofTanimura &Antle Inc., located in Salinas, CA,“Onions are already a destination in theproduce department. A second display withgrilling vegetables helps stimulate creative

vegetables has been successful.”Onions are a vegetable category commonly

taken for granted, so focusing on seasonalitycan provide a sense of urgency that will notonly draw more attention to these items, butalso encourage impulse sales.“Most consumersdon’t pay attention to the seasonality of onionsor where they are from, but if this informationis presented to them, it can add value to theproduct, especially if the onion is locallygrown,” Smith says. “Additionally, providing adescription of the flavor helps consumers see

80 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

PHOTO COURTESY OF KEYSTONE FRUIT MARKETING INC.

Onions.qxd:Layout 1 8/7/12 1:09 PM Page 2

Page 81: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Curry & Comp.qxd:. 7/27/12 4:48 PM Page 1

Page 82: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

82 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

“One of the easiest ways to bring moreattention to the onion category is to place

secondary smaller displays throughout the store.For example, retailers might place secondary

onion displays in the meat department.Displaying onions with meal ideas and recipes

that include these vegetables has been successful.”— Greg Smith, Bland Farms

capture more of the consumers’ dollars.”Attracting attention starts with a properly

rotated display free of loose onion skins. “I’malways surprised when I see an onion displaywhere you seemore loose onion skins than youdo actual onions. I look at all the missedopportunities,”Curry says.

He recommends offering amix of bulk andbagged yellow onions displayed with rootsdown and loose skins removed.“White onionscan be a destination in many regions of thecountry,while red onions offer niche productsand provide a pop of color,” Curry says.“Retailers can also celebrate local and regionalonions, if they are within a growing region,with photos of the growers and a brief story.”

Suppliers recommend that sweet onions beplaced in a central location in the producedepartment, with a secondary display duringthe weeks leading up to late summer and fallholidays.“As summer grilling season gives wayto tailgating season, this is the perfect time topromote onions, as they are a staple at cook-outs,” says John Shuman, president anddirector of sales at Shuman Produce inReidsville, GA.

Shuman Produce has created packaging forits bagged onions that provides consumerswith nutritional information, storage tips andseasonal recipes to enhance sales at the pointof purchase. “We also recommend retailerssupplement merchandising efforts throughattractive, educational point-of-purchasematerials to communicate type, use optionsand nutrition information about sweetonions,” Shuman says.

Category TrendsThere are a number of ways retailers can

capitalize on current onion trends to provideadded sales opportunities for these products.“Training store merchandisers is key,” saysKelso of Onions Etc. “I tell retailers constantlythat they should merchandise like a chef.”

Because more people are cooking at hometo savemoney, retailers can educate consumerson what onions to buy and how to prepare

them. There’s an onion for every purpose, butconsumers won’t know this unless retailersinform them. “Consumers continue to spendmore time in their kitchens versus theirfavorite restaurants in the wake of theeconomic downturn,” points out Shuman.“This trend toward dining in has allowed theonion category to grow, as these vegetables area staple item in most consumers’ kitchens. Infact, research shows that consumers purchaseonions on a regular basis and consistentlyinclude them on their shopping lists.”

This provides opportunities for retailersthat focus on the onion category and properlyposition these products in their producedepartment.“Stores can increase sales of theseproducts by carrying a wide assortment andproviding menu ideas that communicatewhich onion is best suited for each applica-tion,” says Antle of Tanimura & Antle.

There are rarely hot merchandising trendswhen it comes to onions. However, somecreative applications have been popping uparound sweet onions, thanks to the VidaliaOnion Committee, which has created addi-tional value over the past few years by utilizingseasonal selling tools. Also, some state oniongroups promote their locality of onions usinghigh graphic boxes.

Potandon’s Schwartz recognizes, “Withonionsbeing sucha largepart of existing culture,it is difficult to create new usage events. Theblooming onion did well, but not on a game-changing level.The trends that are emerging thatmight have an impact tend to be slow and notoverwhelminglywell received.Examples of thesewould be peeled onions, or processed onionssold in the produce department.”

Curry of Curry & Co. states, “Onions areoften seen as a maintenance item, and a lot ofstores we work with see spikes in onion salesthe first two weeks of the month and then adecline after that. Perhaps a promotion in thethird or fourth week would provide an unex-pected lift,”he suggests.“Some of our partnersfocus on bagged sales at the start of themonthfor customers who purchase a lot of their items

Onions.qxd:Layout 1 8/8/12 10:10 AM Page 3

Page 83: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

with theBreastCancerResearchFoundationandprovide retailers with materials to bring atten-tion to in-store promotions that include POSmaterial as well as secondary smaller displays.

More retailers are seeking point-of-purchase feedback, since many are utilizingin-house signage for onion displays. TheNational Onion Association (NOA), located inGreeley, CO, provides POS information aboutwhen and where to use different onion typesand what flavors are available from one seasonto the next. “Seasonal cross-merchandising

tomatoes, squash and meat. Burger toppingsare another option, with onions displayedamidst iceberg lettuce, ground beef, buns,condiments, tomatoes, cheese and pickles.Stores can promote grilled vegetable dishesthat include onions, bell peppers,mushrooms,asparagus, squash, potatoes and eggplant.

Ready-to-display shippers are another greatoption available to retailers. Onions Etc. prod-ucts are shipped to retailers in high-graphicboxes and bins, in addition to a variety of bags.During September, the company will partner

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 83

MERCHANDISING REVIEW

for the month in that first week.”The trend in healthier eating can provide

another marketing opportunity for onions. Inrecent years, the Food Network and celebritychefs have increased the awareness of fresh fruitand vegetable use, including onions. “Onionsare a big part of this awareness as a staple ingre-dient, which naturally resonates through toincreased consumption and higher salesnumbers at the store,”Keystone’s Kamer says.

Bulk and consumer bag displays, along withvalue-added product offerings, should beprominently merchandised in end-caps andstand-alone displays for enhanced visibility.Signage with produce information, nutritionfacts and recipe suggestions provide addedattention. The basics still apply, including fulland fresh displays, attractive signage andquality products. “In general, retailers areemploying much more sophisticated merchan-dising techniques than four or five years ago,”Kamer adds. “They now have messages, POSmaterials, educational brochures, demonstra-tions and product education boards.”

One of the biggest challenges for theindustry, growers, marketers and retailers is tomeet consumer expectations. The fact is,consumers respond to brand recognition inthe onion category. Sweet onions, for example,are a fast-growing segment and a categorydriver due to this type’s versatility.“Even if theyear-round sweet onions have become a main-stay in the department, there continues to be alot of imposters — or onions that are labeledsweet but fail to meet consumer expectationsand destroy consumer confidence — ulti-mately slowing the sales and profits foreveryone,” Kamer says.

Tools Of The TradeSuppliers and associations offer a number

of merchandising tools that can increase thevisibility of onion displays on the store floor.“We have retailers that do what we call RecipeMerchandising,” Onions Etc.’s Kelso says.“These are recipes that utilize four to sevenSKUs in the produce aisle.”A shopping list onthe back of Onions Etc. bags helps provideretailers with ideas to build unique displaysthat cross-merchandise complementary items.“This increases what is known as incrementalsales, or the sale of a product that was not orig-inally on a consumer’s shopping list whenhe/she walked into the store,” he explains.

There are endless cross-merchandisingopportunities with onions, including alongsidemeat, pasta ingredients and bagged salads.Retailers can provide recipes for kabobs nearthe onions, mushrooms, bell peppers, cherry

Onions.qxd:Layout 1 8/7/12 1:21 PM Page 4

Page 84: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

84 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

“We have retailers that do what we call RecipeMerchandising. These are recipes that utilizefour to seven SKUs in the produce aisle. This

increases what is known as incremental sales...”— Derrell Kelso Jr., Onions Etc.

ideas are always great, but this can be moredifficult in the growing season, since produceand meat items tend to stick to their respectivedepartments,” says Kim Reddin, director ofpublic and industry relations for the NOA.“Anything retailers can do to pull these itemstogether for roasts, stews and soups is benefi-cial. Stores can even offer slow cookers withrecipes to help drive sales.” The NOA iscurrently working on a joint project with theU.S. Potato Board to develop onion and potatoPOP merchandising tools for produce depart-ments. Consumers are looking for guidance,especially with onion use. Any recipes thatoffer value and save time will be appealing to amajority of consumers.

“The only challenge in selling onions is notstocking what the consumer wants, thus losinga sales opportunity,” says Antle of Tanimura &Antle. “Sourcing quality onions with a long

shelf-life eliminates shrinkage issues.”Merchandising tools can also be geared

around seasonal onion varieties, like Vidalias,which are popular around the Fourth of July.This is a good opportunity to incorporatefamily-friendly displays that catch kids’attention.For example, incorporating swim toys, like innertubes and noodles, is a creative way to highlightthe limited availability of these products.

Brannen of the VOC shares, “We’re devel-oping POP materials that assist retailers withdisplays.”In fact, she attributes a big jump in theVOC’s Facebook traffic to these marketing tools.

It’s important to think outside of the boxwhen merchandising onions. Potatoes are thetraditional item onions are merchandised near,but there are many more ideas that can beemployed. For example, Potandon’s Schwartzpoints out, “Onions near displays in the meatdepartment invoke cooking reminders to

Onions.qxd:Layout 1 8/7/12 1:22 PM Page 5

Page 85: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

MERCHANDISING REVIEW

and harvesting process,” Shuman says. “Aconsistent, year-round promotional planincluding all onion category segments will go along way in the pursuit of achieving optimalpromotional impact.”

Although the onion category offers manyopportunities for growth, it is not one that ishighly visible in the produce department. Byeducating consumers on the use of theseitems, utilizing merchandising tools availablefrom suppliers and trade groups andproviding complete and neat displays of

shoppers, but also near lunch meat counters,as these products remain a key sandwich ingre-dient. Onions with salad vegetables would beanother great impulse placement area, aswould a mixed display with onion soup fare,such as cheese and breads.”

Building a complete display with a widerange of products that can be used interchange-ably is even more effective. “We believe thatpairing our product with other items includedin these recipes is a greatway to increase sales ofsweet onions,” Shuman says. “For example, werecommend stocking RealSweet onions neardisplays of tomatoes, avocados and packagedsalads. We also believe including related prod-ucts, such as salad toppings, crumbled baconbits and onion ring batter next to sweet oniondisplays is a functional way to build a successfulcross-merchandising campaign.”

Growers, shippers and retailers continu-ously strive to develop state-of-the-artpackaging and displays to catch consumers’attention, while at the same time providinginformation on nutrition and utilizing prod-ucts to boost retailer sales. Keystone’s Kamernotes, “Thirty percent of consumers said theywould buy and eat more fruits and vegetablesif they knew how to use them.”This is why it’simportant for retailers to include effective POPmaterials and signage that help showcase thenutritional benefits and flavor of the widevariety of onions available.

Shuman Produce provides retailers withcolorful bins designed to enhance the visibilityof the retail display. The company also offersretailers a number of merchandising programsand tools, including a new consumer-focusedwebsite, a mobile website and presence onsocial media networks, where the companycommunicates directly with consumers.

The packaging Shuman Produce is knownfor was redesigned last year to include newrecipes and a QR Code connected to a newmobile-friendly website.With one click from aSmartphone or handheld device equippedwitha code reader, consumers can access onlinecontent such as video, storage tips and addi-tional recipes. “This year, we’ve also used ourpartnership with Atlanta chefs and radio hostsChef and the FatMan to share how-to videos ofsome of our favorite recipes through ourwebsites and Facebook page,” Shuman says.

Some of Shuman Produce’s retailer part-ners also use grower profiles to shareinformation about the company and Real-SweetVidalias with their customers.“We enjoyusing these opportunities to bring the story ofthe product to life through photography fromour farms and information about the growing

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 85

these products, produce departments cantake advantage of the revenue-buildingopportunity that onions provide. “Onionsdon’t have the sizzle of fresh fruits or theseasonality of asparagus,” says Curry. “Butwhat they do have is consistent shelf-spacefor the entire year. As marketers, we need toshow our retail partners what they can do tonot take their onions for granted. They havethe real estate already, but the question is howcan retailers make that real estate shine anddrive more onion sales?” pb

Onions.qxd:Layout 1 8/7/12 1:22 PM Page 6

Page 86: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Mushrooms: Five TopChallenges & OpportunitiesAs consumers focus on healthful eating, mushrooms area natural choice to shine the light on produce. BY CAROL M. BAREUTHER, RD

White mushrooms continueto lead the category insales while brownmushrooms are continuingto show strong growth.

Meatless Mondays, flexitarianeating-styles and the recom-mendation to fill half ourplates with produce are all hotdiet trends helping drive sales

opportunities for mushrooms. Just look at thenumbers.Themushroom category representednearly 2 percent of produce department dollarsales for the 52 weeks ending April 28, 2012,according to the Nielsen Perishables Group, aWest Dundee, IL-based fresh food-consultingfirm. In addition, mushrooms represented 4.8percent of total produce department vegetabledollars and 1.7 percent of vegetable volume,according to Fresh Look Marketing Groupdata for the 52 weeks ending April 22, 2012.

Yet, there are challenges inmushroompara-dise. Offering the right variety, enough displayspace,minimizing shrink, educating customersin order to increase consumption and movingbeyond just price promotions are potentialpitfalls that, once solved, offer the opportunityfor increased sales.

1. Get It Right: VarietyWhitebuttonmushrooms lead the category in

sales, representing 64 percent of dollars and 68.1percentof volumeforthe52weeksendingApril28,2012,according to theNielsenPerishablesGroup.

However, Jane Rhyno, director of sales andmarketing for Highline Produce Ltd. Co., inLeamington,ON,Canada, notes,“We continueto see strong growth of brown mushrooms,especially the Cremini. This past year, Creminigrowth in theU.S.marketplace has been around6 percent, with double this in the Canadianmarketplace.Creminis have a heartier flavor anddenser texture thanwhites,which is a key reasonwe see a lot of consumers converting.”

Brownmushrooms,which include Creminisor baby Bellas and Portabellas, represented 29.6percent of category dollars and 27.4 percent ofvolume for the 52 weeks ending April 28, 2012,according to theNielsen Perishables Group.

Demand for Creminis is outpacing that ofPortabellas at Bristol Farms, a 13-store chainbased in Carson, CA, according to RaulGallegos, senior director of produce and floral.“The reasons include versatility. Due to theirsmaller size, consumers can use them in avariety of recipes.”

Another reason for the current growth ofCreminis is the ‘something new’ factor, addsDennis Chrisman, director of produce andfloral for Dorothy Lane Markets, a three-storechain based in Dayton, OH. “Portabellas are amore mature mushroom.”

Fred Recchiuti, general manager for

Basciani Foods, in Avondale, PA, points out,“We’ve seen demand increase for Portabellasduring the summer for grilling applications,and this is more so than usual this year.”

“The merchandising opportunity is to givea bigger slice of facings to brown mushrooms,both Creminis and Portabellas,” specifies GarySchroeder, managing member and CEO ofOakshire Mushroom Sales LLC, in KennettSquare, PA.

Joe Caldwell, vice president of Watsonville,CA-headquarteredMontereyMushrooms Inc.,agrees and adds, “To be most profitable, theamount of room allotted to browns needs tochange seasonally. For example, home panelsurveys show us more that brownmushroomsare bought during the summer. This meansthat during the summer, there needs to be ashift toward upwards of 50 percent of thedisplay as browns.The opportunity here is thatyou can get a higher ring of 10 to 15 percentmore on brownmushrooms over white.”

Consumer interest is picking up forspecialty mushrooms, as well. According toKevin Donovan, national sales manager forPhillipsMushroomFarms LP,based inKennettSquare, PA. “Shiitakes are gaining ground dueto their flavor. We offer a gourmet blend withbaby Bellas, Shiitakes and yellow Oysters to

MERCHANDISING REVIEW

86 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

Mushrooms.qxd:Layout 1 8/7/12 3:37 PM Page 1

Page 87: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

where to find product; significant amount ofproduct on the shelf so as to not run short at thebusiest times of the day— between 5 to 7 p.m.on weekdays and weekends— good lighting todisplaymushrooms attractively; and high valueitems placed at eye-level,”details Caldwell.Harvey Mitchler, director of sales and

marketing for Champ’s Mushrooms Inc., inAldergrove, BC, Canada, recommends,“Increase displays by 25 to 50 percent for ads. Inaddition,definitely displaymushrooms inmorethan one place.”

MERCHANDISING REVIEW

perception of total store quality and freshness,“so give them their due space,” says Rhyno.Mushrooms are displayed in a 4-ft. wide

refrigeratedmulti-deckcaseatBristolFarms,withadditional space devoted during promotions.FletcherStreet,directorofmarketingandsales

for Ostrom Mushroom Farms, located inOlympia, WA, says, “The optimal amount ofdisplay space depends on store size andgenerallyvaries from four to eight to asmuch as 12 feet.”“Characteristics of gooddisplays are a desig-

nated destination so that consumers will know

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 87

introduce customers to these mushroomswithout them having to buy a big portion ofeach.This has proven to be successful product.”Oystermushrooms are not growing in sales

as fast due to their short shelf-life, contendsSchroeder.“Many times in a display the oystersare the ones that have sat too long, and itdetracts from the overall display,” he reasons.Specialty mushrooms, which include vari-

eties such as Shiitake, Oyster and Enoki,represented 2.6 percent of category dollars and1.6 percent of volume for the 52 weeks endingApril 28, 2012, according to theNielsen Perish-ablesGroup.Combos or blends contributed 0.9percent of sales and 0.6 percent of volumeduring the same time period.“At Bristol Farms,”saysGallegos,“white and

browns, as well as Shiitakes,Oysters and Enokisare all part of our offerings.”In addition to seasonal influences, space

allocation for each variety is influenced by thetype of store and clientele serviced. Highline’sRhyno comments, “Allocation for a large,variety-focused store would be 50 percentwhite, 35 percent brown and 15 percentspecialty,whereas a smaller or low-assortment-focused store would be 65 percent white, 25 to30 percent brown and 5 percent specialty.”Seasonally available specialties such as King

Trumpets, Golden Chanterelles and freshPorcini mushrooms are sold at Dorothy LaneMarkets, addsChrisman.“These varieties attracta different type of customer— a foodie who iswilling to pay $20 to $60 or more per pound.”According to Paul Frederic, senior vice pres-

ident of sales and marketing for To-JoMushrooms Inc., in Avondale, PA, “Slicedmushrooms are commanding a bigger portionof sales, and this is true across varieties. This isbeing driven by consumers’ need for conven-ience.” Sliced mushrooms represented 43.5percent of dollars and 41.2 percent of categoryvolume, for the 52weeks endingApril 22, 2012,according to Fresh LookMarketing Group.Pre-washed slicedwhitemushrooms are the

No. 1 selling SKU at retail, reports MontereyMushroom’s Caldwell. “Now, we’re seeingretailers carry both 8- and 16-oz. packages ofwhite and brown sliced mushrooms.”Bart Minor, president and CEO of the

Mushroom Council, in San Jose, CA, says, “Inaddition to whole and sliced mushrooms,value-added mushroom sales are on the rise.Consumers want ready-to-eat items that areconvenient, easy to cook and serve.”

2. Make Space For MushroomsMushrooms provide goodmargin and sales

and are a key item that influences consumers’

Mushrooms.qxd:Layout 1 8/7/12 3:37 PM Page 2

Page 88: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

‘weak,’discount it or remove it from the displayand replace it with fresh items. Third, bulkmushrooms still sell well in certain markets.Keep displays refrigerated and compact.Displaythem in the original case. Do not dump orhandle the product to display.”Bulkmushroomsgenerally experiencehigher

shrink thanpackagedproduct.Highline’sRhynoreports, “Bulk mushrooms average closer to 25to 30 percent shrink, while packaged mush-rooms typically have about 7 to 9 percent.”Inventory control is crucial to minimizing

shrink, adds the Mushroom Council’s Minor.“With data analysis, supply chainmanagementand store procedures, retailers can begin tooptimize shrink levels in their produce depart-ments,” he says.“Of course, shipping, handlingand proper storage will improve shrinkage.”Litvin adds, “It is extremely important for

retailers to display mushrooms at the propercooler temperature. Cool the product to 34degrees Fahrenheit for maximum shelf-life.”However, unrefrigerated mushroom

displays are something that Bristol Farm’sGallegos says hemay explore.“I’ve traveled andseen fresh mushrooms merchandised on end-caps off refrigeration,”he shares.“The exposure,in a highly visible location, and the quick turnsthat result shouldn’t increase shrink, and couldperhaps lead to even greater sales due to visi-bility. This would be something that wouldneed to be done at a perfect storm time ofdemand. For example, right before a holiday,while on promotion, and on a high-traffic dayof the week.”

4. Educate Customers On Usage Ideas“Education is important,” says Ostrom’s

Street.“Mushrooms are still a bit of amystery tomany consumers.”One way to teach usage ideas is by cross-

merchandising. Dorothy Lane’s Chrismanshares, “We’ll put packages of Morels or KingTrumpets on the service counter in meat andseafooddepartments.Themeat guys are usuallyoutdoorsy and can easily relate to mushroomsand answer customers’ questions. It’s some-thing that differentiates us from the big boxstores and something that encourages two ormore high-margin purchases at once.”Historically,POShave been anothermethod

of educating consumers. Champ’s Mitchlerlaments,“Retailers seemreluctant todisplayPOSthese days. I think they rely on consumers doingtheir own research on the Internet to get recipeideas. I think the i-Phonehasmademorepeoplelook to this as a free source of information.”Recipes are the key to educating consumers

aboutmushrooms and one of themain drivers

highly perishable item like mushrooms.Monterey’s Mushroom’s Caldwell points out,“The average is typically over 10 percent,although 15 percent is too high.”Mitchler acknowledges,“Shrink can happen

in many ways. Some of the most commonissues I see at retail are too much product ondisplay, i.e., stacking packages two or threelayers deep. Displays need to be replenishedevery few hours to keep fresh and looking full.Secondly, poor rotation of slow-moving itemscan be problematic.Once product starts to look

The Mushroom Council encouragessecondary displays of fresh mushrooms adja-cent to complementary food items in order tostimulate impulse purchases. Bill Litvin,national account manager for Giorgio FoodsInc., in Temple, PA, details, “For instance,retailers could place Portabella mushrooms inthe soy/veggie burger section, or sliced whitemushrooms alongside bagged salads.”

3. Shrink ShrinkShrink of five percent or less is excellent in a

88 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

Mushrooms.qxd:Layout 1 8/7/12 3:37 PM Page 3

Page 89: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

MERCHANDISING REVIEW

of new purchases. Bristol Farm’s Gallegos,shares,“We use our website and store-level QRcodes to provide customers with recipes.”

Mushroom growers such as Highline haveaddedQR codes to their packagedmushrooms.“This allows us to inspire and educate theconsumer at the point of purchase,”says Rhyno.“Our codes provide recipes, nutritional infor-mation, videos andmuchmore.The content isdynamic and varies by variety, which helps tokeep the consumers interested as they comeback for their next purchase.”

The Mushroom Council’s social mediaefforts are geared toward educating consumerson the versatile and nutritional benefits of

mushrooms.By replacing a portion of themeatin a recipe with mushrooms, which have asimilar taste and texture to meat, consumerscan use mushrooms to cut calories and loseweight. Like other produce items that are highin water content and dietary fiber,mushroomscan help an eater feel full.

5. Variety Is The Spice Of PromotionsPrice is a prime method to promote mush-

rooms, but not the onlyway.“Themost effectiveways retailers canmerchandise and increase thesales of mushrooms is throughpromotions andBest Food Day ads,” statesMinor.

Don’t give away margin with a too heavilydiscounted price,warnsMontereyMushroom’sCaldwell. “Mushroom consumers aren’t asprice-driven. Therefore, a 15 percent discountcan be just as ormore effective than 50 percent.What ismore important is to point out a specialopportunity that is driving the promotion. Forexample, mushrooms and bagged salads, ormushrooms,onions and peppers for kabobs, ormushrooms, cheese and tortillas.”

An advertised price and recipe ideas areboth part of the “Passport to Saving” promo-tion held for an 8-week period twice annually atBristol Farms. Cremini mushrooms were

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 89

mushrooms. Minor reports, “Our consumerresearch indicates that mushroom usage isincreasing during breakfast and lunch meals.Recipes for breakfast, lunch and dinner mealscan be found on the Council’s website andsocial media sites.”

On the nutrition front, retailers can partnerwith the Mushroom Council to activelyencourage consumers to substitute a portion ofmeat in dishes with mushrooms. The “Mush-room Swapability’ campaign aims to draw onmushrooms’reputation as amore healthful, lessexpensive option to meat. The Council offersrecipe suggestions, such asmaking hamburgerswith a mix of 50 percent meat and 50 percent

Mushrooms.qxd:Layout 1 8/7/12 3:38 PM Page 4

Page 90: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

“The beauty ofmushrooms is that

they are available in aconsistent supply. Plan

at least threepromotions eachmonth...Planning

ahead assures that youare moving product,

turning the wholecategory and

maximizing sales.”— Paul Frederic, To-Jo Fresh Mushrooms LLC

included in the spring promotion. Gallegosexplains, “It’s a store-wide clipless couponpromotion where we work with participatingsuppliers to highlight specific items with avariety of delivery vehicles such as recipe tear-pads and shelf-talkers.We let customers knowwhich items are included by way of a brochurethat is available in store, as well as mailed.”

The effectiveness of a promotion reallydepends on your goal. Highline’s Rhyno says,“Packaged white mushrooms are still the keyitems for driving volume on an ad. If the goal isto increase variety sales and margin, use lessaggressive features on brown mushrooms orbrown/white combo to help grow incrementalsales. We have seen that customers whopurchase brown mushrooms buy mushroomsmore frequently and buy more varieties thanothers. Focusing features and education to helpgrow this brown consumer base will help growthe total category.”

“Smaller volume items such as Shiitake orOyster mushrooms are never going to make itin a circular ad because they won’t generate thereturn,” says Ostrom’s Fletcher.“Therefore, putspecialtymushrooms on in-store ads every twoto four weeks. It’s important to mix it up.”

To assure allmushrooms in the category arepromoted, set up a promotional calendar thatspans the year, recommends To-Jo’s Frederic.“The beauty of mushrooms is that they areavailable in a consistent supply. Plan at leastthree promotions each month. For example,grilling promotions for brownmushrooms onthe Fourth of July, and advertising large whitemushrooms for stuffing during thewinter holi-days. Planning ahead assures that you aremoving product, turning the whole categoryandmaximizing sales.” pb

90 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

Mushrooms.qxd:Layout 1 8/7/12 3:38 PM Page 5

Page 91: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

DRIED FRUIT & NUTS

Sell Raisins To IncreaseProduce Sales And MoreThis versatile dried fruit champion adds a unique presence in any producesection, providing opportunities for greater sales all year long. BY STATHI AFENDOULIS

If you had a nutritious, profitable, highlyversatile product with a substantial shelflife and good value in the eyes ofconsumers, where in a supermarketwould you sell it? The answer, when it

comes to raisins, is elusive.And yet, in speakingto growers, distributors, marketers andretailers, one thing appears to be true: theywould all like to see them sold in produce.However, according to the Fowler, CA-basedNational Raisin Company, only one-third ofretailers sell raisins in the produce department.Are they lacking the proper imagination andmarketing tools? Is the product difficult tomerchandise?Are producemanagers restrictedby store policies and delivery practices? Theanswers seem to be a mix of both yes and no.Food is life, and nowhere is food more

alive than in the produce section. Jane Asmar,vice-president of sales and marketing forNational Raisin Company, states, “Peoplespend more time in the produce departmentthan in any other part of the grocery store.”In other words, they take their time. Produceis the mainstay of the modern day grocerystore, where people stop and evaluate whatthey are going to purchase for themselves andtheir families.

Miranda Ackerman,marketing director atVacaville, CA-basedMariani Packing Co. Inc.,agrees, adding,“Since amajority of dried fruitis purchased for snacking, as opposed tobaking uses, placement in produce helps todrive impulse purchases and cater toconsumers looking for healthier snacks.Plus,” she continues,“dried fruit products, likeraisins, are a natural fit for the producedepartment as they provide consumers withconvenient, shelf-stable fruit snacks, whileproviding retailers with high-margin items,with virtually no shrink, which help combatthe challenges with high shrink in theproduce department.”

Out Of Sight, Out Of Mind“It makes sense to merchandise raisins

where shoppers do not have to search forthem,” recommends Joe Tamble, vice presi-dent of sales at Sun-Maid Growers ofCalifornia, in Kingsburg, CA.Visibility is keyand display is king when it comes to sellingdried fruits and raisins. Companies like Sun-Maid, Sunsweet and Earthbound Farms wanttheir products sold in produce, and for thisreason, they create display materials retailerscan use to immediately create a footprint that

is versatile and easy to merchandise.Shipper displays are a vital tool in selling

raisins year-round. Industry professionalssight this as the No. 1 factor in creating sales.Raisins are an impulse buy, and their place-ment in produce can stimulate sales. EdKellenbenz, produce category manager forPatterson,NJ-based A & P, strategically placesdisplays throughout produce and createsindividual sales areas dedicated to dried fruitsin produce.When asked why, he explains,“Welike the umbrella effect produce has for sellingraisins. Large aisles, close proximity to freshproduce and the ability to merchandise withattractive displays helps us drive our driedfruit sales. We pride ourselves on making itattractive to consumers.”According to sales data from IRI, dried

fruit sales increase by nearly 60 percent dueto displays, and raisins make up 31.4 percentof dried fruit sales. But more importantly,parents — who spend more time in producethan anywhere else — are seeing these itemsnicely packaged next to the lettuce for salads,or the nuts for trail mix and school snacks.Mariani makes it easy for retailers to cross-

merchandise its products with display-readyshippers. “Secondary placement and POP

Raisins come in all shapesand sizes, perfect forhealthful year-roundsnacking.

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 91

Raisins.qxd:Layout 1 7/31/12 11:47 AM Page 1

Page 92: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

“We like the umbrella effect produce has for selling raisins.Large aisles, close proximity to fresh produce and the ability to

merchandise with attractive displays, helps us drive our dried fruit sales.We pride ourselves on making it attractive to consumers.”

— Ed Kellenbenz, A & P

Hill Foods, of Grand Rapids, MI, sells hisorganic raisins in produce.Merchandised in amulti-deck produce case, Forest Hill Foodsfeatures all of its organic dried fruit productsthere and in grocery. VandenBerge notes,“We’d like to see all our raisins in produce,”but shipping practices fromwholesale distrib-utors makes it difficult for him to split thiscategory and move conventional raisins outof grocery and into produce. So organics hasa dual footprint in his store.

Samantha Cabaluna, director of commu-nications for Earthbound Farm, based in SanJuan Bautista, CA, relates the power oforganics. According to Cabaluna and theOrganic Trade Association, 4.2 percent of allfood sales are organic, translating into 29billion dollars in sales a year. Sun-Maid andForest Hills Foods are definitely on trend.Marketing organic raisins in a special sectionof produce is highly recommended by Earth-bound Farms, and Jeff VandenBerge buys thatphilosophy. “Getting these items in front ofthe consumer is our first priority,” he says.“Visibility is a key to better sales.”

The Power Of The Dried Fruit CategoryAccording to IRI, dried fruit represents

$682 million dollars in sales as of April 15,2012. Raisins represent $214 million dollarsof that amount, or a 31.4 percent share. Cran-berries, prunes and apricots make up the rest,along with organics. But more importantly,raisins and dried fruits are highly profitablein produce for a number of reasons. Puttingaside the fact they last for up to 18months onshelves and require little or no care whatso-ever, raisins and dried fruits are valued by theconsumer for their versatility and nutritionalvalue — and there’s no shrink.

Given the efforts of growers and distribu-tors to help retailers market raisins in theirproduce department, with attractive shipperdisplays and promotional pricing, thenumber of retailers selling raisins in produceshould be a lot higher than 31.4 percent.Tamble of Sun-Maid points out, “A bag ofraisins is rarely rolling on the floor with thegrapes or being eaten by toddlers in the store.It’s pretty simple — sell more raisins, makemore money.” pb

DRIED FRUITS AND NUTS

September and December, when back-to-school days create the need for healthful andnutritious snacks. The merchandising of minipacks for school lunches and adult snacks inproduce is a smart move, given that perishablefruit sales are lower in the fourth quarter, andparents are looking for a nutritious alternative.

Halloween and the holiday season offerretailers additional opportunities to displayraisins in produce. Customarily, the bakingaisle has been home to raisins for those whoare creating their special holiday recipes, butplacing raisins in produce, next to the freshvegetables, nuts and dried fruits offer anopportunity for greater sales.

After the holiday season has ended, theseasonality of raisins continues to exert itsinfluence if the retailer is imaginative andwilling to see beyond the fourth-quarter box.Sun-Maid’s Tamble offers excellent suggestionsto stimulate sales between the holidays, such asoffering recipe suggestions in ads and otherstore literature, including websites, and byproviding ongoing nutritional education toconsumers with on-shelf nutrition ratings.“Raisins and many other dried fruits haveexcellent nutritional scores in these ratingsystems, typically equivalent to their fresh fruitcounterparts,” he says. Displays, cross-merchandising, highlighting year-round usesand ongoing education are four simple waysretailers can increase sales between the holidays.

Growing OrganicsOne thing is for sure: organic raisins and

dried fruits are the fastest growing segmentsof the dried fruit category. Since 2008, therehas been steady growth in organics, asconsumer interest grows, even in times ofeconomic downturn.While 2009 was a toughyear, 2010 saw a rebound in organic sales.Sun-Maid Growers has responded to thisrebound by offering multiple organic raisinitems that are perfect for produce sections toappeal to shoppers looking to increase theirpurchase of organic food items. Based on IRIdata, the Sun-Maid 6-pack Organic Raisinitem is the top-selling single-serve organicdried fruit item in the United States.

Jeff VandenBerge, owner and chief oper-ating officer of independently owned Forest

displays are an imporatant way to drive incre-mental sales and extra volume during keypromotional periods,” says Ackerman. “Whilemany store departments are looking to ‘clean-floor’ policies, display-ready shippers are agreat way to drive impulse purchases, commu-nicate key promotional messages, as well ascross-promote in other sections of the stores.”

Stephanie Harralson, product manager forYuba City, CA-based Del Monte Dried Fruit,contends, “Retailers are missing an importantopportunity to increase sales, drive impulsepurchases and create more profits by notcreating highly visible displays in produce.” Andif it’s out of sight, it’s not in yourmarket basket.

Today And EverydayBecause of their versatility and 18-month

shelf-life, raisins can be sold throughout theyear, at lower cost and higher profit. Tradition-ally, raisins sell well between the months of

92 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

PHOTO COURTESY OF SUN-MAID

Raisins.qxd:Layout 1 7/31/12 11:47 AM Page 2

Page 93: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Sun Maid.qxd:. 7/27/12 5:13 PM Page 1

Page 94: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

In all my years of produce experiencethere have been many meetings dealingwith subjects that require action on the

part of management and employees. Thesemeetings have included strategic visions,new programs, changes in direction, andother such subjects within the retail world.My experience, as well as that of otherretailers, has inevitably come to the pointin the execution of these new programs that

management shows his frustration by saying,“They just don’t get it!”This frustration is borne of the feeling that the employees don’t sharethe same sense of urgency as management. I have experienced thisfeeling before, and for a time, wondered how to overcome the chal-lenge represented in getting employees to have the same excitementor sense of urgency about the execution of new programs. The solu-tion presented itself by simply placing oneself in the position of theemployee being presented this new challenge or change in direction.

As I place myself in the shoesof the employee, it became clearas the presentation of the newdirection was being made, onequestion was unanswered in theemployee’s mind. That one ques-tion was a simple one; “What’s init for me?” I was amazed at howsimple it was to obtain the keyelement in executing any newprogram: employee buy-in.Mostpresentations by management ofand these types of new programsand new direction often overlookthe need to convey the reasoningfor these new programs beyondcorporate goals. Adding thebenefits to the employees of thenew program in terms of advancing their own skills and career wouldhelp to ensure higher levels of execution of these new programs.Other benefits that can be used to obtain this type of buy-in wouldinclude job security, improved esteem (self-worth), and additionalhours gained from driving additional sales results.

I recall when amodified corporate presentation of a new programincluded the benefits to the employee, as well as the benefits to thecompany, was presented to employees. It was astonishing to see theincrease in not only interest but also the excitement among theemployees to execute this program to its fullest extent. A key elementof this presentation was the ability to show the benefits of executingthis program to each employee and the impact they can have on

making it a success. It didn’t matter what the benefits were, the keyaspect of the presentation was how these benefits to the employeewould help execute the plan, and ultimately benefit the company. Thepitfall in this is over describing the benefits to the employees and notallowing them the tools to accomplish these goals. This type ofapproach may take additional training of the employees to go alongwith their new responsibilities under the new direction. In an overallsense, showing the employees what the benefits would be for this newprogram instills in them the value and interest the company has intheir career advancement, as well as provides the motivation for theemployee to get the new job done.

Time after time, the simple inclusion of the benefits to theemployee of the new program or direction being presented hasresulted in better execution of the program. The more times this isrepeated, the more that the employees feel the proposal is to bettertheir own careers as well as the company’s goals. This provides forcontinuing successful results. This also boosts the morale of thepeople who are being asked to execute this new change in their oper-

ation. It also fosters a sense ofbeing a part of the changes andallows complete buy-in by theemployee as to the importanceand urgency of the execution.

If anyone doubts the successof this type of approach all oneneeds to do is to prepare such apresentation and observe theresults. In my experience, thesuccess of this type of approachbecomes obvious as results in thedepartments reflect thesuccessful adoption of the newprogram or direction. If younever tried this approach, itwould behoove you to do so andsee if this is successful within

your operation.While this may seem to be a very simple fix, it requires a great deal

of thought to be sure that the proper message is being conveyed tothe employees as to the benefits as well as the requirements of the newprogram and how it applies to them. These must be realistic andattainable or the entire exercise will prove to be futile.Many efforts todo this have met with failure by not being realistic in not only theexpectations, but also the benefits to the employees. When preparedcorrectly with foresight and thought, these types of presentations willbecome the cornerstone of a successful, ever changing, and cuttingedge produce operation with dedicated employees willing and eagerto move forward with the true sense of urgency. pb

Time after time, the simple inclusion ofthe benefits to the employee of the newprogram or direction being presentedhas resulted in better execution of the

program. The more times this isrepeated, the more that the employeesfeel the proposal is to better their owncareers as well as the company’s goals.

SENSE OF URGENCY

By Don HarrisDon Harris is a 38-year veteran of the produce industry, with most of that time 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 presently consulting on all subjects of retail,category development and sales strategies, among others. Comments can be directed to [email protected]

94 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

RETAIL PERSPECTIVE

Harris.qxd:Layout 1 8/3/12 11:40 AM Page 1

Page 95: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Produce 4 Better.qxd:Ad 7/27/12 5:09 PM Page 1

Page 96: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Just as the EU Commission was about tocommunicate the lessons learned of lastyear’s E. coli outbreak, which caused

more than 50 casualties, a seemingly unre-lated event highlights the need for industrynot to lose sight of chemical contaminants.

The communication of the EUCommis-sion did not put into question industrypractices; instead themost important lessonscover the review and improvement of crisis

management procedures and communication activities by authorities.However, specific rules on the production of sprouts and seeds forsprouting have been adopted, given the vulnerability of this productcategory and its implication in last year’s outbreak.

Traditionally, the EU fresh produce industry approach with regardto microbiological contamination has always focused on prevention,particularly in primary production. The EU regulatory approach alsofavors prevention over decontamination practices; just think of the EU-US chlorine chicken trade dispute.

Whether producers and ship-pers wanted to take additionalprecautionary measures in theaftermath of last year’s crisisremains hard to assess.Yet the useof sanitizers has come under thespotlight in recent weeks due tothe presence of QuaternaryAmmoniumCompounds (QAC)on fruit and vegetables,which ledto considerable disruptions in thetrade. These compounds are mainly used as disinfectants, but in somecountries also as pesticides. In certain cases, they are also used as co-formulants in pesticides and biostimulants. Whereas the strictregulatory status regarding QAC residues was clear (0.01 ppm), theextensive presence of unintentional residues on a variety of foodstuffsrequired an urgent temporary solution.

The swift and responsible attitude from the fresh produce supplychain, investigating all possible contamination routes and providinganalysis results, has contributed to a fast response from the EUCommission and Member States. A temporary safety level of 0.5 ppmwas introduced, pending further investigations by authorities. Theadopted guidelines provide the industry with enough time to furtherinvestigate the exact causes of cross-contamination and discontinueany non-essential uses throughout the supply chain.

The story is very similar to the morpholine-incident in 2010, whenthe discovery of the unauthorized carrier morpholine in fruit coatingsled to a chain of events which, given the magnitude of the use, couldhave led to major trade disruptions. At that time, the EU Commissionand Member States exceptionally granted the industry a transitionperiod to clear the supply chain of any fruit treated with coatings

containing morpholine.While thesemeasures prevented a potential crisis for the fruit sector,

the search for alternative products and coatings fully complying withEU food law raised considerable challenges for various operators.

Whereas these two incidents were contained tomanageable propor-tions by being granted temporary solutions, the legal uncertainty stillled to considerable volumes being lost and operators losing millions.What can the industry learn from these events?

As the industry continues to look for innovative solutions to containmicrobiological contamination, improve the quality and extend theshelf life of fresh produce, while trying to minimize pesticide residues,it starts to hit the boundaries of legislation and sometimes even ends upin unregulated areas.

In reality, the regulatory approachwith regard to food contaminantshas barely changed and remains largely fragmented in separate verticalchapters covering biocides, fertilizers, food additives, plant protectionproducts, etc., creating gray areas and potential loopholes in whichoperators can get easily lost. Meanwhile registering new solutionsremains burdensome and time-consuming, and inmany cases prohib-

itive for the ‘small’ volumes fruitand vegetables represent. Whilstindustry associations try toaddress these issues, legislativeprocedures take ever more time,and public money to supportspecialty crop solutions remainsscarce.

In the absence of regulatorysolutions, industry will need to beeven more cautious and trans-

parent with regard to the choice and use of protective solutions.Despitelast year’s deathly E. coli outbreak, EU customers and consumersremain very much focused on the issue of chemical residues. Manu-facturers, whether distributing biocides, fertilizers, food additives orplant protection products, will have to becomemore transparent withtheir customers with regard to the formulations of their products. Inorder to comply with specifications of export markets, producers andshippers should be able to verify whether any product ingredients maycause problems.

Such caution should not be limited to new solutions. Indeed,morpholine and QACs have been used for years without anyonenoticing. As the scope of residue detection methods continues toexpand, similar incidents are likely to occur in the near future unless theindustry adopts a pro-active approach in which all chemical productsare scrutinized and potential problems are reported and dealt with,rather than hoping no one will notice.

As an industry association, we clear the regulatory jungle and evencan support registrations. Whilst our incident management has anexcellent track record, better yet would be to anticipate the next inci-dent. It is all about transparency! pb

96 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

In order to comply with specifications ofexport markets, producers and shippers

should be able to verify whether anyproduct ingredients may cause problems.

TRANSPARENCY NEEDED TO UNCOVERPOTENTIAL CONTAMINATION PROBLEMS

EUROPEAN MARKET

By Frédéric RosseneuFrédéric Rosseneu is the director of food quality and sustainability at Freshfel Europe, Brussels, Belgium

Euro Market.qxd:Layout 1 8/8/12 12:39 PM Page 1

Page 97: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

When we peel away 130 years ofAmerican history, and look back tolearn how raw frontiers gave way

to new communities, attracting families withthe promise of schools, new roads and neigh-bors, we see that the vitality of thecommunity was centered on the “generalstore.” Not only did it offer necessities — fromrifles and saddles to flour and canned goods— but the store also was the place to meet for

exchanging gossip and hearing news about happenings elsewhere.Gradually, the family-owned “general store” became the new center

of community activity, vigorously competing in the early 1900s againstthe A&P “chain stores,” which, by 1930, grew to an extraordinary 15,000stores across the country. Independent grocers not only remainedinvolved with local interests and family life in their communities, butalso were becoming aware of important issues that lay beyond thehorizon of their own communities, eager to become involved in publicpolicy activity.

The beginning of aformal national structureof independent grocersfrom different parts of thecountry, working togetherto address national issues,occurred in 1893 at theChicago World’s Fair,when a small groupformed the National Asso-ciation of Retail Grocers ofthe United States(NARGUS). Over the nextseveral years, NARGUS

joined with other organizations to voice its support of congressionalaction for enacting strict measures to assure consumers of safe food.This collective action resulted in the Pure Food Act of 1906, whichincluded creation of the Food and Drug Administration (FDA), thewatchdog for food safety, which continues to function today.

When NARGUS and the Association of Cooperative Food Distrib-utors of America (CFDA), representing wholesalers of foodproducts, merged in 1982 to create the National Grocers Associa-tion (NGA), the interest in consumer issues not only remainedstrong, but also expanded.

As NGA marks its 30th anniversary in October this year, we arecommitted to our original mission of promoting the common interestand relationships of independent food retailers, retailer-owned coop-eratives and voluntary wholesale distributors with two key objectives:providing consumers with a diverse, competitive and safe food supplywith choices in price, variety and value, while also fostering productivetrade relations among all sectors of the food industry.

A key to the success of independent retail grocers and wholesalers

has been the strongworking relationship thathas existed with theirtrading business partners,like those in the produceindustry. Produce alwayshas been an importantcategory that independ-ents have utilized torespond to consumerdemand for fresh andnutritious food. Over theyears, independents havereached out to local

farmers as well as distant suppliers to feature fresh fruits and vegeta-bles. More recently, local, independent merchants have joined withlocal farmers to market locally grown tomatoes, corn, apples andhundreds of other products.

Each year, NGA recognizes independent retailers for innovationsinmerchandising and advertising through the “Creative Choice AwardsContest.” In recent years, fresh produce has been the focus in winningentries submitted by Macey’s, Harp’s Food Stores and Big Y Foods.While contest winners are the “best of the best,” creativity and imagi-nation by store associates are evident every day in a store’s producepromotion, designed to attract shoppers.

The importance of produce to the independent retailer was furtherdemonstrated last year when NGA partnered with Produce MarketingAssociation (PMA) to create a produce pavilion in the 2012 NGA Show.We are excited to look ahead to our 2013 showwhere PMAwill repeat thepavilion, in a larger space, as a testimonial to the success enjoyed by thePMA exhibitors in their face-to-face contacts with independent retailers.

It’s fascinating to consider that although 100 years have elapsedfrom when NARGUS members supported the Pure Food Act of 1906,the same sense of responsibility for food safety is evident today inNGA’s collaboration with the Food and Drug Administration and othertrade associations to develop workable and cost effective produce trace-ability standards for the benefit of consumers.

As we begin our fourth decade of service in the food industry, NGArecognizes the significant value for independent retailers and whole-salers in strengthening their relationship with the produce industryfor our mutual benefits. pb

PRODUCE ROOTS GO DEEP AT THENATIONAL GROCERS ASSOCIATION

By Peter LarkinPeter Larkin is the president & CEO of the National Grocers Association (N.G.A.), the national trade association representing the retail and wholesale

grocers that comprise the independent sector of the food distribution industry, representing over $225 billion in annual domestic sales.

Fisher’s general store in Oakley, KS, before the turnof the 20th century.

ALL PHOTOS COURTESY OF NATIONAL GROCERS ASSOCIATION

A U G U S T 2 0 1 2 • P R O D U C E B U S I N E S S 97

VOICE OF THE INDUSTRY

Produce always has been animportant category that

independents have utilized torespond to consumer demand for

fresh and nutritious food.

Rodgers Bros. grocery in Topeka, KS, before theturn of the 20th century.

VOI.qxd:Layout 1 7/31/12 4:17 PM Page 1

Page 98: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

98 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2

BLAST FROM THE PAST

One of Alameda, CA-based Frieda’s most memorable historic events was the introductionof kiwis and their inaugural shipments to the United States from Auckland, New Zealand,which occurred in October, 1962. The photo at right was taken a few years after the first ship-ment of 200 10-lb. flats of kiwifruit were received.Welcoming the shipment on the back dock of Frieda’s produce stall on 7th Street of the

Los Angeles ProduceWholesaleMarket was GrahamTurner, president of Turners and Grow-ers, one of New Zealand’s oldest distributors, marketers and exporters of fresh produce;Frieda Caplan, founder and chairman of the board of Frieda’s Inc; Bill Bennett, producebroker with C. H. RobinsonWorldwide Inc.; and Norm Sondag, customs broker from Ziel& Co., of San Francisco, CA.Although Caplan often gets credit for naming the fruit, she notes it was in fact Sondag who

suggested the name. “He thought it would be very difficult to sell something called ChineseGooseberries to the American public,” she recollects. “He told me the fruit resembled the na-tional bird of NewZealand, theKiwi,which I then suggested to the growers back inNewZealand.”Indeed, kiwis are a beloved fruit today, according to Caplan, “It took nearly 18 years for

them to really catch on in this country, and we can’t forget the boost the fruit received fromrestaurateurs like Wolfgang Puck and magazines like Bon Appétit and Gourmet for featuringthe unusual green fruit on their covers and in recipes.”While Frieda Caplan will always have a fond place in her heart for the little green fruit that

could, her stomach heartily disagrees, as she is actually allergic to them!

Receive supplier information fast using the Produce Business Information Showcase. Here’s How:Contact the advertiser directly via the Website, e-mail, or phone listed in the ad.

COMPANY PAGE # PHONE WEBSITE COMPANY PAGE # PHONE WEBSITEA&A Organic Marketing, Inc. ..................62 ..............831-768-0300 ..................................www.aaorganic.comAlbert’s Organics......................................62 ..............828-298-7776..........................www.albertsorganics.comAlpine Fresh ............................................34 ..............800-292-8777 ................................www.alpinefresh.comAnthony Vineyards, Inc. ..........................90 ..............661-858-8300......................www.anthonyvineyards.comAPEAM (Avocado Producers & Exporting

Packers of Michoacan)..................48-49 ................................................ww.avocadosfrommexico.com/tradeApio, Inc...................................................45 ..............800-454-1355 ......................................www.apioinc.comAyco Farms, Inc. ......................................34 ..............954-788-6800..................................www.aycofarms.comBaero North America, Inc. ........................15 ..............314-692-2270....................................www.baerousa.comPhilip Balsamo Company ........................74 ..............630-575-8000 ..........................www.phillipbalsamo.comBard Valley Medjool Date Growers Assn 29 ..............800-794-4424 ................www.naturaldelights.com/retailBlue Book Services..................................65 ..............630-668-3500 ....................www.producebluebook.comBorton & Sons Inc...................................57 ..............509-966-3905 ................................www.bortonfruit.comBrooks Tropicals ......................................61 ..............800-327-4833 ........................www.brookstropicals.comCanadian Produce

Marketing Association ........................41 ..............613-226-4187....................................www.freggietales.caCapital City Fruit Co., Inc. ..........................8 ............4515-981-5111 ..............................www.capitalcityfruit.comCarbAmericas ..........................................34 ..............954-786-0000 ............................www.carbamericas.comCastle Rock Vineyards ............................90 ..............661-721-8717....................www.castlerockvineyards.comCenter for Produce Safety ......................75 ..............530-757-5777 ..............................www.cps.ucdavis.edu/Christopher Ranch ..................................63 ..............408-847-1100........................www.christopherranch.comColumbia Marketing International ..........53 ..............509-603-1955 ..................................www.cmiapples.comConcord Foods ........................................47 ..............508-580-1700 ............................www.concordfoods.comCrystal Valley Foods ................................34 ..............800-359-5631......................www.crystalvalleyfoods.comCurry & Company ....................................81 ..............800-929-1073 ................................www.curryandco.comCustomized Brokers ................................34 ..............305-471-8989......................www.customizedbrokers.netDel Monte Fresh Produce ......................100 ..............800-950-3683 ..........................www.freshdelmonte.comDiMare Fresh ............................................68 ..............209-862-2872 ..............................www.dimarefresh.comDole Fresh Vegetable Co. ..........................2 ............800-333-5454..............................www.dole.com/saladkitsDouble D Farms ......................................63 ..............559-884-2000............................www.doubledfarms.comdProduce Man Software..........................25 ..............888-PRODMAN ..........................www.dproduceman.comEclipse Berry Farms, LLC ........................68 ..............310-207-7879 ......................www.eclipseberryfarms.comEclipse Dist., Inc. ....................................78 ..............630-365-9680Floral Business ........................................17 ..............561-994-1118 ..............www.floralbusinessmagazine.comFlorida Restaurant and Lodging Show ..85 ..............203-840-5950 ....www.flrestaurantandlodgingshow.comGiorgio Fresh Co. ....................................89 ..............800-330-5711 ..............................www.giorgiofoods.comThe Giumarra Companies........................60 ..............760-480-8502....................................www.giumarra.comGourmet Trading Company ....................34 ..............310-216-7575............................www.gourmettrading.netGourmet Trading Company ....................56 ..............310-216-7575............................www.gourmettrading.netHarris Produce Vision ..............................40 ..............269-903-7481Harvest Sensations..................................35 ..............305-591-8173......................www.harvestsensations.comHighline Mushrooms................................88 ..............866-454-7986..................www.highlinemushrooms.comIdaho-Eastern Oregon Onion

Promotion Committee ........................80 ..............208-722-5111 ..................................www.usaonions.comInline Plastics Corp. ................................37 ..............800-826-5567 ............................www.inlineplastics.comJAB Produce ............................................74 ..............312-226-7805Jacobs, Malcolm & Burtt, Inc...................35 ..............209-367-0990

Jem D International..................................68 ..............800-286-0691..................................www.jemdfarms.comKern Ridge Growers, LLC ........................62 ............661-854-3156 ......................................www.kernridge.comKeystone Fruit Marketing, Inc. ................35 ..............800-498-1577 ............................www.keystonefruit.comKeystone Fruit Marketing, Inc. ................84 ..............717-597-2112 ..............................www.keystonefruit.comL&M Companies, Inc. ..............................52 ..............509-698-3881 ............................www.lmcompanies.comLa Hacienda Brands, Inc. ........................72 ..............12-243-2755........................www.lahaciendabrands.comMandolini Co. ..........................................74 ............312-226-1690..................................www.mandolinico.comMann Packing Company, Inc. ..................11 ..............800-884-6266......................www.veggiesmadeeasy.comAnthony Marano Company......................71 ..............73-321-7500 ..........................www.anthonymarano.comMaxwell Chase Technologies, LLC ..........40 ..............404-344-0796............................www.maxwellchase.comMIXTEC Group ..........................................41 ..............626-440-7077 ........................................www.mixtec.netMooney Farms ........................................69 ..............530-899-2661 ..............................www.moneyfarms.comMucci Farms ............................................69 ..............866-236-5558................................www.muccifarms.comRaymond Myruski....................................82 ..............845-651-7900N2N Global ..............................................12 ..............888-783-5088 ..............www.n2nglobal.com/foodservicePacific Organic Produce ..........................63 ..............415-673-5555..............................www.purityorganic.comPacific Tomato Growers ..........................69 ..............209-835-7500 ........................www.sunripeproduce.comPeri & Sons Farms ..................................84 ............775-463-4444 ................................www.periandsons.comThe Perishable Specialist, Inc. ................35 ..............305-477-9906 ............www.theperishablespecialist.comPeruvian Asparagus

Importers Association ........................35 ..............817-793-3133Phillips Mushroom Farms........................87 ..............800-722-8818 ............www.phillipsmushroomfarms.comPom Wonderful ..........................................9 ..............800-380-4656 ..........................www.pomwonderful.comProduce for Better Health Foundation....95 ............302-235-2329..............................www.pbhfoundation.orgProgressive Marketing Group..................35 ..............800-900-0757 ..............................www.pmgstrategic.netRosemont Farms Corporation ................35 ..............561-922-7201 ..........................www.rosemontfarms.comSAGARPA - Embassy of Mexico ........42-43 ..............202-728-1727 ................................www.sagarpa.gob.mxSage Fruit Company ................................55 ..............913-239-0060 ....................................www.sagefruit.comSambrailo Packaging ..............................39 ..............800-563-4467 ..................................www.sambrailo.comSandrini Sales, Inc...................................90 ..............805-792-3192......................................www.sandrini.comSouthern Specialties................................35 ..............54-784-6500 ....................www.southernspecialties.comSpice World, Inc.......................................25 ..............800-433-4979............................www.spiceworldinc.comStrube Celery & Vegetable Company ....73 ..............773-446-4000........................................www.strube.comSun-Maid Growers of California ..............93 ..............800-786-6243 ..................................www.sun-maid.comSunlight International Sales, Inc.............23 ..............661-792-6360 ......................................www.dulcich.comSunview Marketing International............90 ..............661-792-3145......................www.sunviewmarketing.comTeam Produce International, Inc. ............35 ..............305-592-5562 ............................www.teamproduce.comTorrey Farms, Inc. ....................................82 ..............585-757-9941United Fresh Produce Association ..........58 ..............202-303-3400 ................................www.unitedfresh.orgUnited Fresh Produce Association ..........46 ..............202-303-3400 ................................www.unitedfresh.orgThe USA Bouquet Co. ..............................14 ..............800-306-1071 ........................................www.usabq.comVillage Farms............................................69 ..............877-177-7718................................www.villagefarms.comVision Produce Company ..........................5 ............201-968-1190 ..........................www.visionproduceco.comJ.C. Watson Company ..............................83 ..............208-722-5161Wonderful Pistachois..............................6-7 ..............800-528-NUTS ................................www.getcrackin.comYakima Fresh LLC ....................................51 ..............800-541-0394 ..............................www.yakimafresh.comKurt Zuhlke & Association ......................38 ..............800-644-8729 ....................www.producepackaging.com

The B l a s t f ro m t h e Pa s t i s a regu la r fea tu re o fPRODUC E BUS I N E S S . We we lcome submiss ions o f youro ld photos , l abe l s o r adve r t i sements a long wi thsugges ted capt ions . P lease send mate r i a l s to :Ed i to r, PRODUC E BUS I N E S S , P.O . Box 810425 , Boca Raton ,FL 33481 -0425 , o r e -ma i l i n fo@producebus iness . com

INFORMATION SHOWCASE AUGUST 2012

KIWISCELEBRATEGOLDENANNIVERSARY

Blast&Showcase.qxd:Layout 1 8/8/12 4:51 PM Page 1

Page 99: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

PerishableNews.com is an outlet for news about all the perishable categoriestypically featured in a retail store:

DAIRY, DELI, BAKERY, MEAT & POULTRY, SEAFOOD, PRODUCE, FLORALPlus we cover top-level happenings in Retail and Foodservice that are of specialinterest to a perishable food executive at a supermarket or other retail chain andat a foodservice chain operation or foodservice distributor.

PBH PeriNews.qxd:Layout 1 7/27/12 5:05 PM Page 1

Page 100: DOLE.qxd:Ad 7/27/12 4:54 PM Page 1 - Produce Business · 12 P R O D U C E B U S I N E S S • A U G U S T 2 0 1 2 AUGUST15-17,2012 TEXASPRODUCEASSOCIATIONCONVENTION ConferenceVenue:GrandHyattHotel,SanAntonio,TX

Del Monte.qxd:Ad 7/27/12 4:50 PM Page 1