By Michael Worthington, CEO PMA Australia-NZ.

he fresh produce industry will look back on the extreme weather of the summer of 2010/11 and just hope that it was a one-in-100 year event.

Australia is used to cyclones, droughts, fires and floods but what made this year so notable was that so many parts of the country were affected.

Felicity Robson-Rous, Marketing Director of OneHarvest, one of the country’s leading packaged salad companies, said: “As standard business practice, we are very well diversified geographically when it comes to the supply of our fruits and vegetables, but this year it was almost as if the storms sought out all our areas of production and tried to hit them as hard as possible. And then, just to rub salt into the wound, Western Australia is having one of its worst droughts on record, affecting our supply from that region.”

We all see the short-term impacts of these disasters, but what does it mean for the next 12 months as far as supply goes and therefore prices?

The banana industry is by far the worst affected, with up to 75 per cent of the production area wiped out. As with Cyclone Larry, this will mean substantial shortages over the coming year. As it is such a unique product (and not easily substituted by other fruits), this is a major inconvenience for consumers.

For growers it will be an especially difficult time, coming so soon after the wipeout from Larry and made worse by the fact that in the 12 months leading up to Yasi, returns from bananas barely covered the cost of production. Ironically, the strong ‘bounce-back’ from Larry contributed to this period of over-supply and poor prices for growers. It will be interesting to see if the same happens post-Yasi.

That said, banana growers learnt a lot about risk mitigation from Larry and therefore, from mid-2011 onwards, the supply position will improve, with full supplies available by the end of the year.

Across the board, in other fruit industries from Queensland to Victoria, orchards and vineyards have mostly survived the floods and will recover in time for next season. Obviously, some farmers have had certain blocks more affected than others but, generally, there have been no wholesale wipeouts that will affect supplies over the coming year, although quality could be affected with some crops.

The summer fruit (stone fruit, grapes, mangoes) season will gradually give way to good supplies of citrus, apples and avocadoes through the winter months.

An example of this quick recovery is Abbotsleigh Orchards, west of Bundaberg, whose citrus orchards were badly hit by the floodwaters from the Burnett River.

“With trees almost submerged, we expected the worst,” Managing Director Michael McMahon said, “but apart from the need to wash mud off the young fruit, and remove the fish from the trees [picture], we are still expecting a good harvest in May.”

With vegetables, there is no reason (other than more unfavourable weather) for production not to recover quickly. The worst-affected area, the Lockyer Valley west of Brisbane, will be back in production for its main winter/spring crops and flooded regions of Victoria and Tasmania will also recover in time.

Yes, there will be shortages of certain products at times, but with the ability for consumers to switch from one vegetable to the next, it is unlikely that consumers (from all socio-economic groups) will be ‘priced-out’ of fresh vegetables.

The greatest impediment to a quick recovery is financial capacity. So many producers lost crops or suffered from lower yields and quality downgrades that their income over the past six months has been seriously impacted.

Add to this the required cost of repair to farm buildings, irrigation systems and general infrastructure and it is not difficult to imagine the financial impact, all of which will contribute to how quickly these growers can return to normal production completely.

The medium-term impact of Australia’s natural disasters on fruit and vegetable prices

28 Retail World March 28, 2011

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Did you know? Did you know that 1.5 billion

tonnes of fruit and vegetables were produced worldwide in 2010 and only 10 per cent of fruits and three-four per cent of vegetables are traded across borders?

Michael Worthington CEO PMA Australia-New Zealand

28,30,32-35.indd 28 21/3/11 5:09:55 PM

TRUE OR FALSE: OLDER SHOPPERS ARE THE MOST IMPORTANT TARGET GROUP TO DRIVE MUSHROOM SALES

For more information, please contact your Nielsen representative or email michael.locke@nielsen.com

WANT THE ANSWER? JUST ASK NIELSEN.

You have an idea of your key consumers, but how can you really target them without resorting to guesswork? With your sales data, you only get half the picture. Imagine quantifying the potential for your products by focusing on your most important consumer – wherever they are and wherever they shop in Australia. Nielsen integrates best-in-market data sources with geo-demographic data to help you match products to consumers to stores and maximise your potential, without the gamble.

ANSWER: TRUE. THE 55+ SHOPPER GROUP DOES NOT PURCHASE THEIR FAIR SHARE OF MUSHROOMS, ACCOUNTING FOR ONLY 35 PERCENT OF TOTAL SALES DESPITE REPRESENTING 40 PERCENT OF THE POPULATION. IMAGINE THE IMPACT ON SALES IF WE WERE TO REALIZE THIS OPPORTUNITY AMONGST THIS EVER GROWING GROUP OF SHOPPERS?

29 Nielsen FP.indd 25 18/3/11 1:09:46 PM

30 Retail World March 28, 2011

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Stage 2 of tomato glasshouse in South Australia officially openedBy Cheryl Harty.

epartment of Trade and Economic Development deputy chief executive officer Lachlan Bruce officially opened

the $30 million Stage 2 expansion of the d’VineRipe tomato glasshouse at Two Wells in South Australia on February 22.

The glasshouse, on Adelaide’s northern fringe, has the capacity to produce up to 10,000 tonnes of truss and specialty tomatoes a year and the expansion will double d’VineRipe’s output inside four years.

The $65 million high-tech tomato glasshouse is a showcase development which aligns perfectly with the South Australian Government’s strategic plan by reaping commercial, environmental and social dividends, according to Mr Bruce.

“South Australia aims to become the ‘state of choice’ for investors – a state in which outstanding projects can be realised by government and industry working together. The d’VineRipe glasshouse facility is a great example of that,” Mr Bruce said.

Spanning a total of 17 hectares, the $65 million facility is Australia’s largest tomato glasshouse using leading-edge pad and fan climate control technology. Stage one opened in 2007. The glasshouse is a joint venture between d’VineRipe and Perfection Fresh and diverse investment company The Victor Smorgan Group.

Mr Bruce said the world-class glasshouse used the latest technology to intensify and expand food production in an environmentally sustainable way. It had also created local employment and generated valuable economic activity.

Other speakers at the official launch included Perfection Fresh Chief Executive Officer Michael Simonetta, and the Victor Smorgon Group Managing Director, Peter Edwards. More than 120 key stakeholders, including joint venture company shareholders, fresh produce industry leaders, retailers and local and state Government delegates were also in attendance.

Mr Simonetta said the glasshouse’s expanded capacity better placed d’VineRipe to provide consistent year-round supply, minimise peaks

and troughs and respond faster to shortfalls. He paid tribute to the company’s retail customers who had supported the development from the project’s inception.

Perfection Fresh and its retail partners continued to collaborate by researching and developing new, better-tasting varieties, he said.

The d’VineRipe tomato glasshouse is the largest in the southern hemisphere. It was built by Dutch glasshouse construction company Van der Hoeven Greenhouse Builders, which designed and built both glasshouse stages. More than 100 new jobs have been created within the glasshouse and packing facility.

Incorporating leading-edge technologies and operating systems, the facility includes a co-generation plant that runs on natural gas to control the glasshouse climate. It sources water from Adelaide’s waste-water supply via the Bolivar Water Reuse Project and has a closed watering system and innovative packing lines. The feasibility of generating renewable energies such as biogas to compost its own waste and an on-site nursery to propagate seeds are on d’VineRipe’s future agenda.

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1 2

3 4

5 6

1. The d’VineRipe glasshouse at Two Wells, near Adelaide. Stage 2 – A $35 million expansion has resulted in total glasshouse production of some 17 hectares.2. The d’VineRipe glasshouse at Two Wells, near Adelaide. Stage 2 – A $35 million expansion has boosted annual production capacity to some 10,000 tonnes of tomatoes.3. L-R: Michael Simonetta, Chief Executive Officer Perfection Fresh, with Greg Yeats, Produce Operations Manager South Australia/Northern Territory; Rob Cavallaro, Business Manager, Paul Harker, Senior Business Manager (Produce) and Tim Rice, Vegetable Buyer (Produce), all from Woolworths.4. L-R: Brad Latham, Chief Executive Officer, Sydney Markets; Michael Simonetta, Chief Executive Officer Perfection Fresh; and John Pearson, Chairman Sydney Markets Limited.5. L-R: Vince Simonetta, Director of Sales, Perfection Fresh, and Lachlan Bruce, Deputy Chief Executive Officer Department of Trade and Economic Development South Australia.6. L:R: Joseph Cartisano, Business Manager Key Accounts (Vegetables), Perfection Fresh; Campbell Stott, General Manager Merchandising, and Adam Heitmann, General Manager Merchandising, both from Coles, inspect fruit during a tour of the d’VineRipe glasshouse.

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Network! Do business!

Speakers include:

Maggie Beer ...getting consumers to love your product

Greg Foran, GM Supermarkets Woolworths... what retailers are doing to increase fruit and vegetable consumption

... why independent retailers are so important

Joe Cross, film-maker ...how eating fruit and vegetables changed my life

Lisa Cork, Fresh Produce Marketing…using packaging as a consumer billboard

Wing Mau...opening the doors to doing business in China

Rich Dachman, VP Produce, Sysco Corporation...how the US foodservice industry is aiming to double fruit and veg consumption by 2020

And, by popular demand:

Bryan Silbermann, President & CEO PMA...positioning our industry to meet the fast-changing consumer trends

Conference and Trade Show

Brisbane Conventionand Exhibition Centre 8-10 June 2011

www.freshconnections2011.com.au

Brought to you by

Bringing the industry together

Do you buy or sell fruit, vegetables or flowers?Are you a grower of fresh produce?Are you a supplier to the fresh produce industry?

If so, this is the event for you.

Register now! Visit www.freshconnections2011.com.au to subscribe to our newsletter and receive the latest news on registration and program.

Follow us on

Raymond Jin, Managing Director Golden

Lou Jardin, SPAR Australia

31_MCI_FP.indd 25 18/3/11 12:51:09 PM

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‘Truss Me’ campaign to boost awareness of vine-ripened tomatoes

omato lovers can rest assured that truss tomatoes, the vine-ripened

tomatoes, are flourishing, in spite of recent natural disasters that threatened supplies of fresh produce nationally.

In response to market demand for top-quality Australian tomatoes, leading truss tomato growers d’VineRipe, Moraitis and Blush have increased production of truss tomatoes this Autumn. This leading truss tomato-growing trio have teamed up to establish ‘Truss Me’ – a campaign aimed at educating the consumer about the appeal of premium truss tomatoes – in a bid to increase sales.

“Many consumers cannot distinguish a truss tomato from a field tomato and have little knowledge about hydroponic growing, which is responsible for the outstanding flavour that distinguishes the two,” ‘Truss Me’ grower Godfrey Dol said.

“‘Truss Me’ is a collaboration of proud Australian truss tomato growers who have

increased production levels of the premium fruit and invested in a joint venture to transform the way consumers choose and experience the truss tomato.”

At a time when climate control appears critical, the operational performance of hydroponic growing has many advantages. Truss tomatoes are grown hydroponically in glasshouses in controlled environments, protecting them from harsh weather conditions year round.

Hydroponic farming means the plant is grown in a soil-less medium, but the term also relates to the process of tending to the plants.

Truss tomato growers control the climate within the glasshouse through correct irrigation, fertilisation and other production techniques.

This sustainable farming practice

is extremely water efficient. In fact, truss tomato growers use 90 per cent less water and 80 per cent less fertiliser than tomatoes that are grown in fields.

“The key to a perfectly ripe, flavoursome tomato is in the practice of growing it,” Mr Dol said. “Water and nutrients are fed into the crop in controlled quantities, so there is little waste and a considerable reduction of nutrients leaking into the soil. This practice reduces carbon footprint and ensures the tomato has all the necessary vitamins and minerals to produce a perfect tasting fruit every time.”

Truss tomatoes are easily identified by their green vine (truss), which acts as an indicator of freshness. The tomatoes should remain on the truss until ready to be consumed, as the truss continues to feed water and nutrients into the fruit, maximising

its flavour and juiciness. The nutrient content of

these tomatoes makes them appealing to

consumers. “Truss tomatoes

are high in natural sugars and are tastier than other varieties of

tomatoes, making them ideal for eating

fresh, in salads,

sandwiches and many other dishes,” Mr Dol said.

Healthy and bursting with nutrients, truss tomatoes contain lycopene, an antioxidant responsible for the red colour of tomatoes. Lycopene has been known to decrease the risk of a host of chronic diseases and cancers, with prostate cancer being the most notable.

Truss tomatoes contain calcium and vitamins C and A. These minerals and vitamins help the body to absorb iron and contribute to healthy skin, muscles, hair, bones and teeth. The tomatoes are also a good source of fibre, which is known to benefit the digestive system as well as lower cholesterol.

Consumers are being greatly encouraged to take advantage of the plentiful reserves of truss tomatoes this autumn.

SelectionHarvested when perfectly ripe,

truss tomatoes are delicately hand picked and handled to ensure the tomatoes are consistently high in quality. When selecting truss tomatoes, choose even-sized ones which are deep red in colour. In particular, the first few tomatoes on the vine should have their full red glow.

StorageTomatoes begin to break down

under 4ºC, so they should never be stored in the fridge. Instead, truss tomatoes are best stored at room temperature on a kitchen bench or in a fruit bowl and will last for an average of five to six days.d’VineRipe, Moraitis and Blush

are all proud growers of ‘Truss Me’ tomatoes. Look for the ‘Truss Me’ label in all leading grocery stores and supermarkets.

T “Truss tomatoes are tastier than other varieties and ideal for eating fresh.”

32 Retail World March 28, 2011

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March 28, 2011 Retail World 33

Fresh product of the month: almonds

elect Harvests is one of the world’s largest almond orchard managers, with farming operations just outside

of Robinvale, on the iconic Murray River in Northern Victoria.

A diverse almond-growing, processing and marketing company, Select Harvests is equipped with best-in-class infrastructure, production and processing facilities. These are set to jump into full gear, as the first trees are about to be shaken, signifying the beginning of the 2011 harvest, and the arrival of the new-season almonds.

The global almond market is currently worth an estimated US$4.5 billion and has experienced consumption growth averaging nine per cent per annum since 2000. Almond supply has been restricted by a slowdown in plantings by some major producers in recent years, a lack of suitable growing conditions globally and the relatively long lead times from planting to full production.

Australia is already a significant global manager, processor and seller of almonds with a growing market share. More than 70 per cent of Australia’s almond orchards have been planted since 2004, giving us an enviable maturity profile. Production in Australia is projected to grow 17.5 per cent annually and, on that basis, is likely to exceed Spain as the number two producing country by 2015 (behind California, US, which supplies an estimated 80 per cent of world supply).

The quality of our crop also sets Australia apart, as 50 per cent of Australian almonds are

the premium nonpareil variety, which is highly sought after both domestically and in our export markets. We are particularly well positioned to serve fast-growing emerging economies such as China and India. India is already Australia’s largest almond export market and we are seeing continued growth in demand from the Middle East, which in 2009 exceeded Europe as a market for Australian almonds.

Select Harvests has been, and continues to be, a major driver of growth in the Australian almond industry.

It has more than 30 years’ experience in orchard development, management, processing and marketing. Globally, it is the second largest manager of almond orchards, which gives the company unrivalled scale and expertise. At full maturity and based on existing plantings, a throughput of 52,000 metric tons per annum is expected, based on standard industry yields, equating to 62 per cent of Australia’s almond crop.

As recently as two years ago, Select Harvests commissioned a state-of-the-art processing plant at Robinvale, the most advanced facility in Australia, enabling it to undertake the shelling and packing of harvested almonds. The plant has been built with sufficient capacity and room for future expansion to accommodate the growing crop.

Select Harvest almonds are harvested in the months of February, March and April, and yield occurs when the outer hull splits and the kernel is ready. The orchard floors are cleared of large weeds and swept of all foreign material. Shakers are used to vibrate the tree trunks, so that the husks, shells and nuts inside fall to the orchard floor. After drying, they are swept into rows and picked up ready for storage.

As the first trees are about to be shaken, it

signifies the beginning of a fresh harvest and heralds the arrival of the new season almonds. The newly harvested almonds will generally reach retailing outlets around the country as soon as late March or early April. Promoting these new-season almonds will offer Australian almond consumers the opportunity to enjoy the unique flavour of almonds fresh from the trees. Light in colour, they are sweet and crunchy to taste.

Select Harvests works closely with the key industry body, the Australian Almond Board, to execute a number of key promotional activities across retail channels, helping to communicate the ‘arrival’ of new season almonds in stores all across the country.

This year, creative types have conjured up the slogan ‘New-season almonds taste as good as they look’.

Public promotional events will feature a special dress made from 3000 almonds. This eye-catching dress is being used to promote the freshly harvested almonds.

The dress will also be featured in both print and in-store advertising celebrating the arrival of the 2011 new season almonds.

Some retail partners of Select Harvests will also see the addition of the Almond Snack Tin attached to packs.

This tin holds about 30g of almonds (the recommended daily intake) and provides a portable solution to ensure that almonds can be taken to work, school or are simply handy to snack on during the day.

In addition to being a tasty snack or delicious addition to any recipe, Australian almonds have received the National Heart Foundation tick of approval, as they contain many nutrients needed to maintain a healthy heart and well-balanced lifestyle.

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Production of almonds in Australia is expected to grow 17.5 per cent annually as health-conscious consumers drive demand.

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34 Retail World March 28, 2011

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Flavour trends 2011: opportunities for fresh produceDr Hazel MacTavish-West explores the relevance of flavour trends in fruit and vegetables.

lavour trends are of great interest to manufacturers of processed foods including

confectionery, beverages and sauces. But are these assessments of trends in taste preferences also relevant to the fruit and vegetable sector?

We have been working with a number of innovative fresh produce producers, using these key trends for innovation and improvement. Here is some background and some examples:

Major flavour and fragrance houses have predicted flavour trends for 2011 globally.

Ongoing trends in beverages are for increased healthy, indulgent products, and there is much demand for superfruit, including new and exotic fruits, some with high levels of antioxidants and interesting flavours.

For sweet flavours, the trends are for back to basics, indulgence, fuelling desires to feel comforted and in familiar territory (eg, vanilla in all its forms, dark chocolate).

Savoury trends are for flavours from around the world, as a result of tastes experienced on travels (presumably before the GFC hit). Flavours such as black garlic (fermented garlic to develop molasses-like richness with tangy garlic flavours), rich umami (the fifth taste sense, savouriness), truffle, cayenne pepper (hot), calamansi lime (sour fruit with sweet rind), harissa (hot chilli with olive oil), and Aji Panca (mild pepper with smoky, fruity taste).

Across the new product launches, the fastest growing flavours are chocolate, mango, spearmint, marzipan, cranberry, hazelnut, licorice, peppermint and bitter chocolate.

It is interesting how many of these flavours are actually fruit and vegetables – did you know that one of the key attributes of potato flavour is umami? The flavours used in many applications for processed foods, however, will be synthetically manufactured in a factory, or developed from dried or extracted forms of the produce.

They will be added to branded products in minute amounts, usually along with quite a lot of varied combinations of salt, sugar, fat and more sugar.

The manufactured food companies know that food flavour is integral to our experience of food, and that it is the number one attribute we value, above convenience and price. We are hot-wired from (before) birth to react in a deep, primitive and instinctive way to flavour and fragrance compounds, whether natural or synthetic.

Our perception of flavour is directly linked to the limbic system in our brains, the area that controls sexual urges and memory, which is absolutely why the taste and aroma of an apple pie doused in cinnamon and dripping in hot custard makes some of us remember Granny’s house and makes us feel safe.

This is also why the fresh, green smell of cut grass makes some of us remember lazy summer days, with dad mowing the lawn and us running under sprinklers to cool down, making

us feel relaxed and happy. So, I can hear you asking,

what are the opportunities here for fresh produce? To find those opportunities, first we must seek to understand the specific flavour of the produce.

Flavour of fruits and vegetables is generally a combination of sweetness and acidity, and key aroma or flavour volatility. It is the volatility that has all the power in terms of the impact on preferences and mood: sweetness is nice but, without flavour, one might as well eat sugar.

Secondly, we have to make sure the produce has the best flavour it can possibly have: working with the best varieties, understanding how agronomy, harvest maturity, post-harvest handling/storage, packaging, processing and consumer cooking impacts on flavour.

Thirdly, we communicate this to consumers. We tell them about the flavour of the produce, what they will taste, why it tastes so good (ie, what we have done, naturally, to ensure this) and why it’s important to us and to them

(much like the descriptions on the back of a bottle of wine tell us what we will taste).

We let them know we care about their eating experience. That way they are more likely to come back for more.

In terms of wider utilisation of the flavour trends for 2011 in the fresh produce category, Australia surely leads the way in production of superfruit. At this point in time shelves are groaning under the weight of raspberries, strawberries, pineapples, apricots, plums, nectarines, grapes and more. The requirements here are to make sure fruit actually has more to its flavour than just the right balance of sweetness and acidity. Back-to-basics indulgence via vanilla and chocolate?

The rich exotic, creamy vanillic flavour of Australian calypso mangoes is fabulous and fulfils all the desires to feel comforted and in familiar (summer) territory. There is obviously no shortage of ways to promote and enjoy chillies, garlic, limes and capsicums based on flavour trends, but we are also developing ways to add these to other combinations of pre-prepared vegetable/salad/stir-fry packs, or collections of salad and other vegetables to make things more tasty and convenient.

There has been an increased interest in home cooking, and there has never been a better time to make things easy for busy mums by developing mixed packs of vegetables for salads, stir-fries, roasts, barbecues and (soon, with summer just gone), soups and casseroles. The addition of herbs (mint, rosemary, etc), relevant to the veggies and the meat they share a plate with, will enhance the flavour experience of the pack further.

For the most innovative producers, there also remains the opportunity to smoke produce, or dip it in dark chocolate! If one can’t beat them …

To find out more about using the natural flavours of fruit and vegetables to good end, contact us at www.mactavishwest.com.

Sources: ‘Perfumer & Flavorist 2011’s top 10 Flavor Trends’ and ‘Business Insights Future Flavor Trends in Food’.

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March 28, 2011 Retail World 35

POM Wonderful introduces new fruit juice blend

OM Wonderful has a delicious new addition to its range – POM Pomegranate Cranberry. The new

100 per cent fruit juice is a blend of sweet-tart pomegranates with the crisp taste of cranberries and is now available in Australia.

The juice is an excellent addition to a healthy Aussie lifestyle, with a blend of two antioxidant superpowers in one. It contains only pure pomegranate and cranberry juices with no added sugars, filler juices or artificial ingredients.

When making its pure pomegranate juice, POM Wonderful manages the entire process from tree to bottle. By growing, hand picking and crushing each pomegranate that goes into its pomegranate juice, POM Wonderful can guarantee that every bottle contains pure pomegranate juice with an authentic sweet-tart taste and a consistent dose of polyphenol antioxidants.

POM Wonderful takes the same care in producing its pomegranate juice blends by selecting pure healthy juices that will complement the unique sweet-tart taste of Wonderful pomegranates and by meticulously blending these juices together. This results in a delicious pairing of pomegranates and cranberries that delights the senses while providing a daily serving of powerful polyphenol antioxidants.

POM Wonderful is available in 100 per cent Pomegranate Juice, POM Blueberry and POM Cranberry all year round in the produce section at leading supermarkets nationwide.

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Scientific research programPOM Wonderful also offers the only 100

per cent pomegranate juice backed by more than a decade of scientific research involving top scientists from leading universities around the world. To date, POM Wonderful has funded AU$33 million in research and more than 50 studies have been published in peer-review journals. Primary research areas have included the prostate and cardiovascular, among others.

Antioxidant superpower A recent study showed that POM

Wonderful 100 per cent Pomegranate Juice is the true antioxidant superpower by demonstrating the most complete free radical scavenging activity and the highest polyphenol content compared to red wine, grape juice and green tea. Every bottle of POM Wonderful 100 per cent Pomegranate Juice contains a potent and superior blend of antioxidants including punicalagin (unique to pomegranates), anthocyanins (giving the juice its rich red colour) and resveratrol (the main active compound in red wine).

About POM Wonderful POM Wonderful is the largest producer

of California Wonderful pomegranates, which are grown in the company’s orchards in the sunny San Joaquin valley of central California. The Wonderful variety of pomegranate is renowned for its sweet flavour, beautiful colour and bountiful juice.

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