FPFC Releases First Market Data Report Grocery Outlet Thrives With Unique Model
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october / november 2011 Fresh VOLUME 39 NUMBER 5 D IGEST A PUBLICATION OF THE FRESH PRODUCE & FLORAL COUNCIL FPFC Releases First Market Data Report Grocery Outlet Thrives With Unique Model 2011 Oct-Nov Fresh Digest Final.indd 1 9/26/11 5:27:20 PM
TABLE OF CONTENTS FEATURES 10 FPFC Releases Regional Market Data Focus on Research 12 Grocery Outlet Continues Same Mission That Launched It Focus on Retail 16 QR Codes Gaining Use in Produce Industry Focus on Technology 18 You Say “Tomato.” I Say “Dulcinea.” Focus on Product Development 20 The Keyword is “Growing” at Domex Superfresh Growers Focus on Apples 22 Presentation Matters Focus on Category Mangement 24 NoCal September Luncheon Thank Yous and Event Photos ON THE COVER: Photo provided by 27 AMS Exotic Shows Its “Metal” with New Easy Veggie Grillers Focus on Innovation User Friendly, Ink. 28 NoCal Bocce Ball Thank Yous and Event Photos 32 SoCal August Luncheon Thank Yous and Event Photos 36 SoCal Golf Tournament Thank Yous and Event Photos DEPARTMENTS 4 Editor’s View by Tim Linden 6 Executive Notes by Carissa Mace Volume 39, Number 5 october / november 2011 FRESH Digest (ISSN-1522-0982) is published bimonthly for 8 Council News FPFC Highlights $15 of FPFC membership dues; $25 for annual subscription for non-members by Fresh Produce & Floral Council; 16700 Valley View Ave. Suite 130; La Mirada, CA 90638. Periodicals postage paid at Buena Park, CA, and at additional mailing offices. Postmaster: Send address changes to FRESH Digest, 16700 Valley View Ave. Suite 130; La Mirada, CA 90638. october / november 2011 3 2011 Oct-Nov Fresh Digest Final.indd 3 9/26/11 5:27:25 PM
Is Bigger Better? VIEW As a backyard raves they bring with them. That is no small thing farmer, I am often (pun intended). At my station in life, accolades are forced to contem- a good thing for any reason. And for our industry, plate whether bigger anything that creates positive conversation about is better or is the our products should also be considered a plus. reverse true. (And Since I do nothing special to produce these by the way, I am a large zucchini, I am assuming that professional farm- backyard farmer, not ers could also produce giant zucchini if they wanted a gardener. I’m not to. For some reason, they obviously aren’t interested sure what the differ- Tim Linden or someone would be doing it. Someone is missing ence is but farmer a great marketing opportunity. I have only anecdotal sounds more masculine. Not that there is anything evidence but it is compelling. A recipient of one such wrong about sounding less masculine but I also cook zucchini gift from me recently sent me an email titled and shop and I just don’t want to add “gardener” to “Yummy Zucchini.” It read in part: “We loved the my list of weekend activities.) So back to my bigger is better conundrum. As you see from the picture, I am growing very large By Tim Linden zucchini on my backyard farm. While I harvested plenty of normal sized zucchini this summer, this one plant also produced a half dozen of these EDITOR'S monstrous specimens. On the other hand, my prolific tomato plants tended to produce great, sweet tasting fruit but it was undersized. And my Japanese eggplant topped out at about seven inches with many in the five inch range, much smaller than the nine inches that the plant care tag promised. My jalapeno peppers were also very small as were my bell peppers. Now each of these small fruit and vegetable items were great tasting and received polite verbal applause from my dinner guests when informed that they came from my own backyard. But the accolades I got for my zucchini was off the charts. In fact I heard many of my female guests ask their zucchini that you brought over from your garden! “gardener” husbands why their zucchinis were so Zucchini pancakes, zucchini soup - it was so fresh much smaller than mine. Maybe it is because they and sweet. Thank you for sharing it with us.” are gardeners rather than farmers, but that would A lawyer who works in the office where my be pure speculation on my part. daughter interned this summer heard of my pro- What is most important is whether large or digious Italian squash and begged for one. He said small tastes better. My taste buds might be suspect he loves to stuff zucchini and the ones in the store because by the time I get around to tasting I have are just so small he can’t do anything with them. He always consumed a bit of wine (How can one was totally floored by the size of my zucchini. cook dinner without a glass of wine in hand?). But So there you have it squash industry (and any I can never tell the difference. My small tomatoes other farmer of crops), another free idea to help are very tasty and sweet but so are the large ones. you sell fruits and vegetables. Bigger is better. Of The small zucchini also are pretty good but not any course, with that said, we all know of the success better than these giant ones. baby vegetables have had over the years, including While I cannot objectively judge which is baby sweet peppers, a relatively new product that better by taste, I have come to the conclusion that, is currently doing very well. Maybe the key mar- all things being equal, large zucchini are better than keting concept is “Different Is Better.” No thanks small ones if for no other reasons than for the necessary. 4 FRESH DIGEST 2011 Oct-Nov Fresh Digest Final.indd 4 9/26/11 5:27:28 PM
Lunch with Carissa EXECUTIVE NOTES There is one affliction that all writ- by Tom Fielding Annual Dinner Dance, which always incorpo- ers fear more than rates a fun theme to anything on earth, the add to the festivities. dreaded writer’s block. “Who comes up with So when FPFC Presi- that theme, by the dent Carissa Mace way?” I asked her. suddenly came down “We have an with a case and asked eight to ten member me to assist her in Carissa Mace Tom Fielding committee who each writing this column, I year evaluates the could empathize with her predicament. previous dinner dance and then suggests ideas for Because of my imminent concern for her the next one,” she answered. well being, I immediately dropped everything on I asked her for some of the ideas that have my schedule to make myself available to help her not made the cut. in her time of need. Plus, she had offered me a “Well, each year there is one idea always free lunch. proposed and always rejected called ‘Under The As usual, there was lots of traffic as I headed Sea.’ I don’t want to say who originally proposed it down to Orange County, so on my drive I had and brings it up year after year, so I will only say we time to jot down some questions. After narrowly call it ‘The Chris Puentes Memorial Theme’.” I could averting a collision with a semi (driving and writing see she was starting to open up to me. is never a good idea), I arrived at the FPFC office. Carissa added that FPFC independent con- Forgetting momentarily that she could fire tractor Angela Taylor had proposed a Titanic theme, me at any time, I pondered the question, “What but it was rejected because the FPFC did not have do I not know about Carissa that would be fun the budget “to flood the ball room at the end of the to tell the world (or at least FPFC members who night.” I surmised there would be no appearance read this publication)?” Little did I know that my line by Celine Dion either. of questioning would eventually lead her to reveal With all the different committees that meet a tale about a back stage rendezvous with a Hol- at the FPFC, I wondered if Carissa knew just how lywood star who was wearing his bathrobe. More many there were over the course of a year. I won- on that story later. der no more. I decided to start the interview with some “Last year, I was involved in 83 different meet- easy questions to make her comfortable. “There ings,” Carissa said. And when she says involved, are so many FPFC events,” I said. “Do you have a she means involved. Not only does she attend favorite?” the meetings, but she also writes the agenda, the “I think it is the events where we get our meeting notice, the minutes and back-up materials. members out of the usual business environment,” So it looks like she is working and not avoiding my she said. “I really like the family events like the FPFC phone calls. Day At The Races and the Bowling Tournament, where Luncheons are a big part of the FPFC experi- it is not so much a work-like atmosphere. We hope ence, and the addition of the two Northern Califor- we have the same type of event with the inaugural nia luncheons have proved quite successful. Bocce Ball Tournament in Northern California.” “There was a definite need to create lun- Carissa added that the FPFC Day At The Races cheons in Northern California,” Carissa said. “They has exploded in attendance the past few years. “I always have great crowds, and there is a waiting list remember when we only had about 70 people of sponsors. It just keeps on growing.” attend, and now we sell the event out with a cap Of course, the bi-monthly Southern Califor- of 400 people.” nia luncheons have been a great place to network Now, my personal favorite FPFC event is the for decades. The FPFC changed the location of 6 FRESH DIGEST 2011 Oct-Nov Fresh Digest Final.indd 6 9/26/11 5:27:29 PM
the luncheon to the Cerritos Sheraton a couple of years ago. “Has the transition to a new venue been a smooth one, and how do you secure your featured speakers?” I asked. Carissa said, “We really like the change to the new facility.” She admitted there have been some complaints about the parking, “but I try to tell them that we are ‘helping people’s health’ by having them walk more.” “Since 2007, when you started” I said,“has one luncheon speaker proven to be the favorite among the respondents to your luncheon questionnaire?” “Lyle Waggoner,” she answered quickly. “How about that? People absolutely loved him.” Along those lines, I wondered what types of speakers attract the biggest luncheon crowds? Without missing a beat, she laughed and said, “The most popular luncheons are the ones where a major retailer is the emcee.” As far as where she gets the speakers, Car- issa joked, “We go through a speaker’s bureau or call Bill Laliberte to see who he’s playing golf with that day.” A young Carissa with ‘Gomer’ Proving to Carissa that I pay attention to details (hey, you only get so many moments to which our exhibitors requested. We are always shine), I said, “The Northern California EXPO and evolving.” the Southern California EXPO each has its own By the way, her favorite Expo speaker was distinct personality. Is that by design?” Jerry West. “He is such a generous man and so “Yes,” she said. “The committee for Northern sincere. The Lakers were in the playoffs when he California determined they just wanted a trade was our featured speaker, yet he called me to talk show. ‘Keep it simple,’ they said. We have tweaked about the Expo.” the Southern California show, and switched the I realized by now I had softened her up long lunch to a breakfast to allow more floor time, enough with those easy questions. It was now time to find out the story behind the president. Not be- ing completely stupid, I made sure she had paid the bill before I asked her the next question. “What do we not know about Carissa Mace?” I asked innocently. First of all, did you know that I went to the same high school as Linda Stine, the prior FPFC staff FPFC OFFICE president? “We both went to Chaffey High School 16700 Valley View Avenue, Suite 130 in Ontario, albeit at different times,” said Carissa. La Mirada, CA 90638 Hardly earth shattering, but it was a start. 714-739-0177 • fax: 714-739-0226 I then found out that instead of being on stage Website: www.fpfc.org at the FPFC EXPO, Carissa had once contemplated a career on a completely different sort of stage. “I CHAMP PUBLISHING was a theater major at NYU. For a while, I had a Advertising Office friend who worked for a major Broadway producer 2311 W. Olive Street Burbank, CA 91506 and I was enlisted to be a “seat filler” for big open- 818-563-2228 • fax: 818-563-2722 ing nights, when they always want a full house. I email: tomfielding1@mac.com would get in free and take the bad seats that no Editorial Office one wanted. I can’t tell you how many Broadway 925-258-0892 • fax: 925-258-0893 email: tim.linden@ymail.com Continued on next page october / november 2011 7 2011 Oct-Nov Fresh Digest Final.indd 7 9/26/11 5:27:31 PM
Continued from page 7 old I was a huge Gomer Pyle fan. My parents took me to a Las Vegas show where Jim Nabors was shows I went to for free.” performing.” Not exactly payola, but I kept digging. I immediately thought. “Aha, underage gam- It was actually in New York City where Carissa bling!” changed career paths that would eventually lead her She continued. “After the show, we were in- to the post she holds today. vited to go back stage to see him. When he came “I worked at the New York City Opera in a out to meet us, he was wearing a big yellow bath- fundraising role, which in turn led me to being hired robe, and I sat on his lap for a photo.” Golly! by non-profits which eventually led to the City of I knew at this point I had gotten the “hidden” Hope, and then, the FPFC.” story I had been searching for throughout the in- Just when it seemed I hadn’t gotten any deep, terview. My work was done. And after she reads hidden secrets from Carissa, the truth spilled out. this, my guess is Carissa will never have writer’s “Oh yeah,” Carissa admitted,“when I was five-years- block again. COUNCIL NEWS FPFC Floral Achievement Award Winner Deborah Jackson, who is the senior floral field buyer for Supervalu/Albertsons, received the FPFC Floral Achievement Award at the Southern California Expo in July. Pictured here with her daughter Charisse, Ms. Jackson was noted for her service on behalf of the industry. She has been in the floral business for more than 20 years as both a supplier and a buyer, including the last decade with Albertsons/Supervalu. In a recent interview with the Fresh Digest, she expressed her affinity for the industry. “I still have a passion and a love for the industry and I have great respect for my vendors. I wouldn’t know what to do if I didn’t wake up every day stressed out over my job,” she laughed. 1/3 h 4c ad Henry Avocado Call: 714-447-4306 or 760-497-6373 www.henryavocado.com 8 FRESH DIGEST
COUNCIL NEWS The Fresh Produce & Floral Council FRESH DIGEST Welcomes the Following New Members: Carissa Mace Publisher Gary DeAtley, Loucy DeAtley, Tim Linden Editor Jeanne Riley Tom Fielding California Sun Dry Foods Advertising/Editorial Heather Gray Design/Layout Roger Niebolt, Budd Pohle, Jan Williams FRESH PRODUCE & FLORAL COUNCIL Cargo Data 2011 Board of Directors OFFICERS Barb Metheny Jeff Miller Fresh Connect, LLC Westlake Produce Company Chairman of the Board Norma Cardenas, Edna Dollarhide, Rick Cruz Vons/A Safeway Company Lindsay Orozco, Abundio Ruiz Chair Elect Gourmet Specialties, Inc. Mike Casazza Apio/Eat Smart Therese Ferrara, Kirsten Gallegos, Treasurer/Secretary Patty Knoll Michael Gallegos Temkin International The Laura Scudder’s Company, LLC Immediate Past Chair Harland Heath Heath & Lejeune, Inc. Manuel Morales Honorary Past Chairman Representative Monterey Bay Nursery Inc Ken Ewalt Ready Pac Produce Paul Weinroth Past Chairman Representative Carissa Mace The Nut Boy Inc. Fresh Produce & Floral Council President Robert Degnan, Kellee Harris, David Hinkle DIRECTORS Package Containers, Inc. Mark Carroll Gelson’s/Mayfair Markets Greg Corrigan Brian Klesmith, Randy Shell, Raley’s Supermarkets Melissa Sylte Dan De La Rosa Ralphs Grocery Company RPE, Inc. Dave Howald California Avocado Commission Alan Ecker, Craig Graupe Debbie Jackson Sun-Rype Products LTD. Supervalu/Albertsons Kent Kuwata Smart & Final Corp. Wes Liefer Pura Vida Farms Brad Martin Perimeter Sales & Merchandising Jeff Oberman United Fresh Produce Association Mike O’Leary Boskovich Farms, Inc. Marvin Quebec Quebec Distributing Co. Roger Schroeder Stater Bros. Markets Rich Van Valkenburg Deminski, Van Valkenburg & Associates october / november 2011 9 2011 Oct-Nov Fresh Digest Final.indd 9 9/26/11 5:27:35 PM
FPFC Releases Regional Market Data In September, the Fresh Produce & Floral benefits of membership in the FPFC.” Council released the first FPFC market report, The report released in September covers a which provides sales figures and analysis for all items 52-week period ending April 24, 2011. “This is the recorded under the vegetable and fruit categories data we have been working with while we tweaked for the entire state of California and for four key the format,” Mace says. Another report with fresher markets: Los Angeles, Sacramento, San Diego and data will be available in October. A third report will San Francisco. cover the 2011 calendar year; and in 2012, reports The FPFC has been working with industry will be available based on quarterly data. Focus on Research volunteers and Fusion Marketing of Chatsworth, Steven Muro, founder and president of Fu- Calif., to create the report, and it will now be pro- sion Marketing, said this first report serves as the duced on a quarterly basis and provided free of baseline and each subsequent report will add to this charge exclusively to FPFC members. In addition to data base and soon a very valuable picture will be specific produce items,The FPFC Market Report™ painted. “This first report is a benchmark and gives provides comparative data on fixed-weight product, us a point in time and as we move forward we will organic items and non-produce items like dressings, be able to identify trends and have a much clearer juices and nuts. picture” of what is going on in California as a whole The FPFC Market Report™ is one of the and in each of these four major markets. most significant new member benefits to emerge While the full report is only available to from the planning that followed the Council’s FPFC members, Muro did share a few nuggets that Member Needs Assessment in 2009, according to were unearthed. For example, the report showed FPFC President Carissa Mace. “We saw that what that consumers spent more on fruit and vegetable members wanted, especially retailers, was informa- consumption over the past year but they actually tion about the region we serve,” she said. “The FPFC bought slightly less product. Muro said there has is in a unique position to provide this market data been a worldwide increase in costs in the fruit and and we are the only ones providing it.” vegetable sector and the report reflects that. He Because The FPFC Market Report™ is avail- said other data is interesting to ponder but it will able only to members of the Fresh Produce & Floral take several reports to determine if specific data Council, Mace and the FPFC Board of Directors is an anomaly or a bankable trend. For example, expect it to provide a new incentive for companies of the four markets studied, Sacramento was by to join. “Prior to the introduction of this product, far the leading market for organic vegetables. Is the primary benefit of FPFC membership has been Sacramento a hot bed of organic consumption or our networking events,” Mace revealed. “Now we was there some factor that skewed the numbers for have something to offer companies who can’t take this particular time frame? Only time will tell…and advantage of the networking. We believe that The only FPFC members will know the answer. FPFC Market Report™ is now one of the major 10 FRESH DIGEST 2011 Oct-Nov Fresh Digest Final.indd 10 9/26/11 5:27:35 PM
Grocery Outlet Continues Same Mission That Launched It By Tim Linden Focus on Retail In 1946 with World War II over, Jim Read means using a real life example. Several years ago purchased military surplus and began selling it to when the movie Shrek was in the movie theaters, the public in vacant stores in San Francisco under a major cereal manufacturer partnered with the a “Cannery Sales” banner at hugely discounted producers of the film and created promotional prices. packaging for the movie’s release that featured the Today, the company he started is still owned Shrek character. When the promotion ended, the and run by members of his family and both the cereal manufacturer still had a lot of Shrek cereal operation and the mission have remained true boxes. So they filled them up with brand new prod- to his vision of 65 years go. Over the years, the uct and sold them to Grocery Outlet at a fraction company has expanded and changed its name to of the original cost.The Grocery Outlet stores sold the point that there are now 155 Grocery Outlets that perfectly good cereal for about half the price in six western states. They are headquartered in of the regular branded product, which was exactly Berkeley and the firm’s largest concentration of the same. stores is in Northern California. Porter said most of the company’s daily inven- About 75 percent of the products sold in tory is sourced in this manner from manufacturers these typically 15,000 square foot stores could all over the world. Produce, she said, is typically not still be classified as surplus items that are heavily an opportunistic buy, but the firm’s produce buyers discounted. The firm’s vice president of marketing, still look for good buys. Melissa Porter, calls them “opportunistic buys.” The Scot Olson, director of produce and floral for company’s website spells out exactly what that Grocery Outlet, said the company began offering 12 FRESH DIGEST 2011 Oct-Nov Fresh Digest Final.indd 12 9/26/11 5:27:39 PM
produce in 1999 as a convenience to its customers. He joined the retailer a couple of years later and has helped build the produce department to a very respectable division within the company, though he said it clearly is not an extreme value department. “The typical store carries 125 to 135 SKUs of fresh produce and flowers,” he said, “which includes all the basics.” Those SKUs include the top brands in the country often at a discounted price. Olson said he is not tied to any particular sized product so he can pick and choose when deals become available. One day he may get a good buy on small pears and a week later it may be a size at the other end of the spectrum where the deal makes sense. Olson is helped by the fact that of the 155 Grocery Outlets, only three of them are company- run stores. The other 152 are independently oper- ated in a unique partnership with the individual store owners, so there is no need for every store to carry every product every day. Grocery Outlet builds the store and owns the lease as well as the major equipment, fixtures and the product itself. The inde- pendent operators provide the labor, the day to day supplies and expenses such as shopping carts and bags, and extras that they might want to purchase to set their store apart, such as a Grocery Outlet shade banner for parking lot merchandising. Grocery Outlet also recruits the operators, their business in a brand new store. Today,Tod calls trains them and sets them up in the store locations. it the “best move he ever made.” The independent operators and Grocery Outlet He said he and his wife come into the store split the resulting gross margin on a 50/50 basis. seven days a week but they have a good crew and Porter said it is difficult to label the relation- are able to work only a half day on Sundays and ship because it is different than any other grocery take off other days every once in a while. “Yesterday store chain. “We act as supplier but we are more was Debbie’s birthday,” he said. “So we came in and than that because we actually provide and own the checked everything and she did some of the books inventory,” she said. and then we left.” The operators own their business, includ- The couple have divided the workload in half ing the rights to the Grocery Outlet name, their with Debbie doing the books, handling the one aisle employees and the customer relationship. If an of hard goods and running the checkout stands. Tod operator wants to get out of the business, Gro- handles the rest of the stock and the rest of the cery Outlet works with them to find a suitable employees, including produce. replacement. Olson said the operators are typically “My philosophy with produce is the more husband/wife teams. “We have found that works SKUs the better,” he said. very well,” he said. A tour through his relatively small produce de- One such team is Tod and Debbie Jackson partment revealed many bargains which he pointed who operate a 10,400 square foot Grocery Outlet out in delight, including three pounds of pears for store in San Leandro, Calif., which is in the East Bay, $1.99. “You are not going to find pears priced like south of Oakland. Tod was working at a discount that anywhere else,” he said. “Scot (Olson) gets us chain in the state of Washington when Grocery some great deals.” Outlet recruited him from a career builders web- One thing is evident. There are no scales in site that he was listed on. The couple reached an the produce department nor at the checkout stand. agreement with the supermarket chain, trained for “Everything is sold by the piece or the bag,” said eight months and then moved to California to start Olson. “We look for bargains in produce but it is a october / november 2011 13 2011 Oct-Nov Fresh Digest Final.indd 13 9/26/11 5:27:43 PM
challenge. We are not looking for quality problems. wine at deep discounts when purchasing labels that We are looking for overruns. Probably our best ad- have been overproduced. (On this particular day, vantage is that we are not stuck on any specific spec. I found a bottle of sauvignon blanc that typically We don’t need a 72 count Red Delicious apple. I retails in the high $20s for $5.99.) typically ask my suppliers, ‘What size do you have Grocery Outlet is a third-generation fam- the most of?’ or ‘What are you stuck with?’” ily run business, recognized as the nation’s largest While he tries to carry the basics every day, grocery extreme-value retailer. The co-CEOs — Olson said he knows the firm’s customers and if a MacGregor Read, grandson of the founder, and price point gets too high, he won’t buy it. A case his brother-in-law, Eric Linderg, both began their in point was when cartons of onions skyrocketed careers with Grocery Outlet in 1996. Read, who a couple of years ago, Grocery Outlet just didn’t once worked for Del Monte Foods as a product buy them. manager, advanced through several positions within But with that said, Porter allowed that Gro- the company until he ultimately became the vice cery Outlet customers come from all stations in president of real estate and construction in 2004, life. “There is a very rich class that might not shop responsible for the most aggressive new store at a Grocery Outlet, but every other demographic growth in the history of the company. That growth does,” she said. “We actually co-exist very well with continues today as Porter said the firm is expanding conventional supermarkets. Some people come by about 10 percent each year. into our stores two or three times a week just Lindberg’s career has taken him through the to look for the opportunities. Others do all their entire purchasing department, including perishables. shopping with us.” He was promoted to vice president of purchasing In fact, the company touts some high ends in 2001, where he managed a team of 26 profes- deals such as its wine buys as again it is able to sell sionals. 14 FRESH DIGEST 2011 Oct-Nov Fresh Digest Final.indd 14 9/26/11 5:27:47 PM
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QR Codes Gaining Use In Produce Industry By Tim Linden It is an idea seemingly built for a techie. A of scans is nominal, “but it’s growing.” small two-dimensional code can be read by pointing He said the typical consumer of living butter a camera-equipped smart phone at it and clicking. lettuce is not usually from the techie generation so The Quick Response code (QR) immediately sends he did not expect tremendous volume this early in the user to a website where more information the game. “But as more and more people become about that product can be downloaded. familiar with this technology and as more and more The concept is popping up everywhere in- companies use it on their products, you are going to cluding on signs at events and on consumer packag- see use become more commonplace. We wanted ing. And more and more produce companies are to be ahead of the curve,” he said. also getting into the game. While scanners of the Hollandia QR code Focus on Technology “It is just one more way to connect with the are directed to a mobile website with less graphics consumer,” said Cindy Jewell, director of marketing and easier for the smart phone to navigate, Choate for California Giant Berry Farms, Watsonville, Calif. said that distinction will soon be unnecessary. He Cal Giant has placed the code on each of its said smart phone technology continues to improve consumer packs. Though there is a different code quickly and soon those devices will be able to for each item, currently the codes send all users to navigate a regular website as well as a laptop or a the same URL that Cal Giant has developed specifi- stationary computer. cally for smart phone users. It is a mobile website, Choate said the cost of adding the QR code which, practically speaking, means it has less graphics to the packaging is insignificant and so the only real and is designed to interface with the smaller smart cost was the development of the mobile website, phone type screens. which he said, was also insignificant as it is just part For this specific purpose, Cal Giant has devel- of the company’s monthly website charge. oped what Jewell calls a “promotional event page” The QR code was actually designed for inven- that encourages interaction by the consumer. The tory control by the automobile industry in Japan. page takes the user to specific promotions includ- A subsidiary of Toyota, Denso Wave, owns the pat- ing a $100 per week gift card giveaway. This has ent on the code but it has not chosen to enforce definitely driven use as Jewell said the firm’s QRs that patent. Technologically speaking, the code was were scanned 9,000 times in August. About 200 created as a two dimensional barcode that allows of those scans came from iPads while the other its contents to be decoded at a very high speed. 8,800 were split pretty evenly between iPhones While it is similar to the barcode used on virtually and Android smart phones. all retail products, the difference between the two Cal Giant started adding QR codes to its is the amount of data they can hold. Barcodes are packaging in January of this year. linear one-dimensional graphics that can only hold Hollandia Produce LLC, Carpinteria, Calif., up to 20 numerical digits. The QR code is a two- started printing the QR codes on its living lettuces dimensional matrix barcodes that can hold thou- and other items in April. The company has a differ- sands of alphanumeric characters of information. ent code for each product that directs consumers Apps have been written for the cameras in each of to a webpage specific to that product. At this point, the popular smart phones to allow the code to be just a little more than four months into the project, read almost instantaneously. Director of Marketing Vince Choate said the number 16 FRESH DIGEST 2011 Oct-Nov Fresh Digest Final.indd 16 9/26/11 5:27:49 PM
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You Say “Tomato.” I Say “Dulcinea.” By Tom Fielding For the better par t of the past decade, Hill said, “Dulcinea has also long supported Dulcinea Farms has brought a little bit of Italy to the Produce For Kids program that educates families consumers thanks to its tasty Tuscan-Style canta- on the importance of eating healthy which is a goal loupe, and now the authentic flavor of Italy can be we believe in strongly.” savored in another Dulcinea product. In addition to account-specific programs, the In the past year Dulcinea has rolled out two firm has also dropped FSI (Free Standing Inserts) new varieties of tomatoes. According to Caley Isbell, coupons in select markets. According to Isbell, FSI’s Focus on Product Development “We now offer consumers two distinctive types are “a great way to interact with customers. We of Italian tomatoes, the Primodoro and Amadoro.” have reached more than eight million consumers Isbell said that the Primodoro variety is the number by these promotions.” one selling tomato in Italy. Dulcinea has updated information on their “Thanks to its unique flavor, it’s a great snack- website, too. You can check out some great new ing tomato.” Corey Hill added, “The Primodoro is recipes that include Grilled Watermelon with Greek a really flavorful and sweet tomato that brings out Yogurt,Watermelon Minted Popsicles, Simply Zesty a savory Italian taste that consumers can enjoy any Dulcinea Melon Salad, Amadoro Italian Caprese time of the day.” Salad and Primodoro Italian Skewers. Amadoro is a vine-ripened tomato that bursts If consumers have a question about one of with sweetness and is the perfect complement to the Dulcinea products or recipes, Isbell said they put into your favorite salad. It has authentic on- will receive a reply. “Our goal is to always respond the-vine Italian flavor that is sweet and juicy. Ama- to consumer inquires within 72 hours.” doros are shipped from January to May, while the Over the course of the past few months, there Primodoros are available through October. have also been a few changes in senior management While the tomato category is relatively new at Dulcinea Farms. John McGuigan, who had joined for Dulcinea, the company has been in full marketing the Dulcinea team in 2008 as vice president of sales mode to help move its core products: PureHeart and marketing, has been appointed to the new Mini’s and Tuscan-Style cantaloupes. Dulcinea general manager position. McGuigan looks forward has been focusing primarily on account-specific to overseeing all company operations as well as programs. In addition, for the second consecutive developing strategic direction for the group. year, the marketing team has executed a PureHeart Marketing Director Monique McLaws has ex- outdoor campaign with posters and billboards in panded her responsibilities to include new product selective cities throughout the country. This year, development. McLaws said she is excited to work Denver, Grand Rapids, Houston, San Antonio and closely with Dulcinea’s product development ex- Phoenix were the selected cities for that consumer perts to “help expand the portfolio as well as deliver promotion. new and exciting products that meet the Dulcinea With autumn upon us, that means children brand promise.” With Dulcinea’s two new tomato have headed back to the classroom. Dulcinea is varieties, they are off to a big start. in full gear with a new back-to-school program In addition to heading the finance department, that targets parents and their kids to eat healthier. Tessa Sarrazin is the new director of operations. Isbell said,“We have some awesome back-to-school Managing the financial and administration portions displays that we believe can let parents make some of the company will continue along with developing healthy choices for their children. The front and crop plans and negotiating grower contracts. Sar- center in-store displays highlight PureHeart Mini’s razin will lead the interaction with growers and area and Tuscan-Style cantaloupes which make it fun and managers to plan for Dulcinea’s current production easy for consumers to grab and go. as well as future expansions. 18 FRESH DIGEST 2011 Oct-Nov Fresh Digest Final.indd 18 9/26/11 5:27:50 PM
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The Keyword is “Growing” At Domex Superfresh Growers By Tom Fielding Focus on Apples Autumn Glory According to Loren Queen of Yakima’s through-put capability at several of those packing Domex Superfresh Growers, the company is more lines.” than living up to the last name in its title. Now is a good time to be an apple grower, “We have been and continue to be in an Queen related. “There are more people in more aggressive growth stage,” he said. “We have always markets that are becoming apple consumers, and by been aggressive when it comes to Superfresh expanding we have the access to continue to supply Growers’ infrastructure, and during the past year more product. We look for grower partners that we have been adding more growers and acreage can fill the variety, size and quality needs for those as demand increases.” up and coming markets.” Queen said Superfresh Growers remod- Superfresh Growers currently has 1,100 eled several of its facilities in order to handle the growers aggressively pursuing the same goals of increased volume of fruit. “Six projects have already the company by being proactive in how they grow been completed that will more than double the fruit and helping to meet consumer demands by, as 20 FRESH DIGEST 2011 Oct-Nov Fresh Digest Final.indd 20 9/26/11 5:27:53 PM
Queen says, “being ahead of the curve.” fruit. Earlier this year, in just a three week period, Every apple has a market, Queen stated, and there were more than 2,000 scans of our cherry it is up to Superfresh Growers to know where QR codes that brought consumers directly to our all these apple varieties will be in demand. “We website. By year end we will have QR codes on all are always looking ahead to future potentials,” he our apple and pear bags.” said. “For instance, there has been a swing toward Organic apples are also achieving steady sweeter apples in the United States in recent years, growth at Superfresh Growers. “We represent like Galas and Fujis.” 15 percent of all the organics (apples) grown in There has also been a big market increase in the state, and we now have a 52-week supply of the consumption of uniquely flavored varieties such organic Red Delicious, Fuji and Granny Smith variet- as Pink Lady and Honeycrisp, an apple that in recent ies,” Queen said. years has been Washington’s rising apple star. He added that organic apples make up about “Sales of Honeycrisp,” Queen said, “are still 10 percent of Superfresh Growers’ supply. going crazy. This year, our Honeycrisp volume is up Although this year’s Washington crop is a little more than 120 percent and the numbers continue behind schedule due to Mother Nature’s propensity to increase.” to make things unpredictable, Queen is bullish on He said in Asia sweet apples are the fruit of the season. “We had a cool, wet spring followed by choice. In the United States and Canada, consumers a cooler than normal summer that slowed down the are also much more interested in taste than they growth and timing. The side benefit of that weather are the shape of an apple. is that it has created a terrific eating apple that will When you break down U.S. consumption be sweeter and crunchier.” even further, it is interesting how there are regional He added that a warm September has added differences. Queen said that in the southern states, “a size or two to the fruit.” sweet apples seem to strike consumers’ fancy, while in the Midwest, apples like Honeycrisp and Braeburns shine. Moving to the East Coast, McIntosh and Granny Smiths get their due, while out in the West the Fuji and Gala have gained a lot of admirers. Of course, with all the relatively new vari- eties, the old standby, the Red Delicious, still has its devotees, though it has been overtaken by Gala, which is now the number one Washington apple when it comes to dollars and volume in the United States. Superfresh Growers also has added a new 1/3 sq 4c ad player to the variety lineup, an apple dubbed Autumn Glory. “It is a cross between a Fuji and a Golden Delicious that has received great re- Barsotti Juice views from focus groups and in-store sampling,” Queen said. “Our production on this variety has increased dramatically (up double digits), and we are very excited about its prospects in the future.” Superfresh Growers has added QR codes (Quick Response barcodes) to the Autumn Glory display boxes. Consumers can scan the QR code and it will take them to the Super- fresh website to tell them more about this new variety. “We have had amazing success by putting QR codes on our cherry packaging,” Queen said. “Consumers can get quick information on our OCTOBER / NOVEMBER 2011 21
Presentation Matters By Tim Linden Increasingly, complex data is driving decisions program to a retailer, the retailer is the consumer. in the retail produce department. But a new study Just as the programs themselves rely on visuals to finds that the willingness of retailers to use that help drive sales, the presentation must do the same data is largely dependent on how it is presented thing. Category management, Muro said, depends to them. on understanding the consumer. Retailers and sup- For the past 15 years, Fusion Marketing has pliers rely on scanned data and other data sets to Focus on Category Management established a solid industry presence, providing its analyze trends and information to determine what broad client base with expertise in produce market- motivates a shopper into purchasing. Price, promo- ing and consumer packaged goods. With its strategic tional strategy, point of sale displays, and merchandis- alliances with NPD and U.S. Marketing, the firm has ing are other marketing elements factored into a created an extensive data base that continually helps category management review to obtain a clear and to drive decisions at retail level. However, along the concise picture of each business segment. way, the company has discovered that sometimes He said the presentation has to do the the data is very well received by its clients’ retail same thing. “Category management is essential partners, and sometimes it is ignored. to building a sound marketing plan based on facts Company founder and president, Steven and trends. It becomes a vantage point to success. Muro, told the Fresh Digest that while some retailers But, our unparalleled retail analysis is really central are still skeptical of data driven decisions and would to drive the retailer into action. If a retailer doesn’t rather “go by their gut” that alone did not explain fully understand the meaning behind the data, the the varying success rates of the category manage- report is essentially useless. So, now we know, based ment presentations. “We would see the same data on our research, what elements help motivate a or very similar data presented with very different retailer into action and what information is most results. So we started researching the research to important to them.” come up with some answers.” As far as the concept of category manage- Fusion, which often accompanies its clients on ment is concerned, Muro said most retailers are their category management presentations at retail, very open to suggestions and to making changes began studying the effectiveness of those reports. “but it has to be a change that they can convey It looked back five years and evaluated every aspect in a phone call or an email. You are not going to of each report to determine which were successful convince a retailer to do a reset in all of his produce and which were not. What started to become very departments. That’s just too expensive.” clear is that the look of the presentation itself was The key to category management, Muro very important. said, is making incremental changes that can be ac- Muro said type face, font size, the colors used complished one step at a time. He said in making and the look of the graphics all seem to play a role the case for change, the argument must be laid out in the success of the presentation. “Unlike one-size- one step at a time in a clear, concise and visually fits-all or canned reports, our reports are uniquely pleasing manner. created and designed as an extension of our client’s While Muro did give away a few of the secrets brand,” explained Muro. “We found that the order of his research, he said he was saving most of the in which we presented information and the amount jewels for his clients. He did say that retailers prefer of information offered during a presentation were softer font faces and graphics, and coloration that key in creating a more successful outcome.” is muted or pleasing to the eye. “But we are not The research has led Muro and his team to re- going to publish a paper on this research project,” alize that when presenting a category management he quipped. 22 FRESH DIGEST 2011 Oct-Nov Fresh Digest Final.indd 22 9/26/11 5:27:53 PM
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NoCal Luncheon September 22, 2011 Thank You Sponsors! Key Sponsors Avocados from Mexico Earthbound Farm Gourmet Garden Herbs & Spices IFCO Systems Mann Packing Co., Inc. Keynote Speaker Dr. Bob Whitaker of Produce Marketing Association Marzetti Master of Ceremonies Randy Ducommon of Whole Foods Photo Sponsor North Shore Sales & Marketing, Inc. Décor Sponsor Bay City Flower Margo Robinson of Augustine Ideas and Steve Tsujimoto of Safeway 24 FRESH DIGEST 2011 Oct-Nov Fresh Digest Final.indd 24 9/26/11 5:28:14 PM
Associate Sponsors A.M.S. Exotic LLC Cabo Fresh Gills Onions Grimmway Farms ICD/Davis Lewis Orchards Juiceology Marie’s/Ventura Foods LLC The Oppenheimer Group Produce Marketing Association Westlake Produce Company JJ Garcia of Quebec Distributing, Tran Nguyen and Audrey Desnoyers of Oppenheimer Jon Nicosia of Earthbound Farms, Michelle Narain of Safeway and Dave Moore of Earthbound Farm october / november 2011 25 2011 Oct-Nov Fresh Digest Final.indd 25 9/26/11 5:28:26 PM
Ed Odron (far left), Tony Nunes (near right) and Michael Maddan of Maddan & Company flank Randy Ducommon of Whole Foods. Fernando Azevedo of Mann Packing and Crystal Ball of Safeway Mark Soots and Walter Mathews of Barsotti Juice 26 FRESH DIGEST 2011 Oct-Nov Fresh Digest Final.indd 26 9/26/11 5:28:37 PM
AMS Exotic Shows Its “Metal” with New Easy Veggie Grillers By Tom Fielding Remember those dire warnings from your mother about placing metal objects in the mi- crowave oven? Well, in October, A.M.S. Exotic is introducing its new Easy Veggie Grillers packed in metal trays that can be placed on the barbecue grill, in the oven and, don’t tell your mother, in the microwave. Scott Lehmann, director of sales and market- ing for A.M.S. Exotic, said,“We have been testing this concept for the better part of the last year, and we will be rolling out our new Easy Veggie Grillers in early October. In addition, they will be displayed at Focus on Innovation the New Product Showcase at the PMA Conven- tion in Atlanta, and we’ll be showing them off in our booth.” products to make a more substantial meal. “I’ve put According to Lehmann, the new Easy Veggie in some salami in the French Bean Supreme, mixed Grillers will have four SKUs and all “are fresh, with it in with the veggies and all of a sudden I have a no preservatives or other additives such as, flavored center of the plate meal,” he said. butter. We prefer to let the consumer decide what A.M.S. Exotic will roll out these four SKUs of they might want to add to the product, it’s really fan- the Earth Exotic’s Easy Veggie Grillers, but, accord- tastic with a drizzle of olive oil, salt and pepper.” ing to Lehmann, there are a number of other SKUs One of the trays will be what Lehmann called waiting in the queue. “I can envision a number of the French Bean Supreme. “This tray contains fantastic varieties a bit into the future,” he said. French beans, yellow squash, green squash and red Lehmann is looking toward the future with onions and is packed with flavor,” he said. this new line of products. “I envision the Earth The other three veggie trays include the Golden Exotic’s Easy Veggie Griller as the evolution in the Butternut Supreme, which has butternut squash and fresh-cut vegetable category.” fresh red onions. “This one has just a little bit of a bite. I told him about my mother’s stern warnings The onions add a little something to the freshness about putting metal trays in the microwave, and of the butternut squash.” Lehmann said. he said that these new trays are constructed with California Sunshine Supreme, he said, “can be the latest technology that makes them microwave used in a primavera. This one consists of julienned safe. That is unless you have a microwave from the green zucchini, carrots and yellow squash.” late ‘70s. In that case it might be time to upgrade. The final Easy Veggie Griller A.M.S. Exotic The way these trays are made and the material is rolling out is the Tuscan Medley Supreme. This used makes them safe to place in the microwave. is a very colorful and flavorful tray full of veggies,” “I prefer to prepare them in the oven or on the Lehmann said. The Tuscan Medley Supreme tray grill,” he said. includes red onions, green zucchini, yellow squash, Easy Veggie Grillers will be packed eight to a and has green, red and yellow bell peppers. carton, and are expected to retail between $3.50 All of the Easy Veggie Griller trays are 16 and $4. Although the items are available nation- ounces and should be able to feed a family of three wide, Lehmann believes they will start out on the or four people. Lehmann said these items can be West Coast, where “the product definitely fits the served as a side dish, or you can add additional lifestyle.” october / november 2011 27 2011 Oct-Nov Fresh Digest Final.indd 27 9/26/11 5:28:45 PM
No Cal BOCCE BALL September 9, 2011 Thank You Sponsors! After a lesson and a little practice, everyone was Carissa Mace and Amy Wun bocceing like pros. of the Fresh Produce & Floral Council flank Greg Corrigan of Raley’s Supermarkets Let’s Bocce Players formed teams and met new people. JJ On Friday night, Sept 9, FPFC’s Northern Cali- Garcia from Quebec Distributing Co., Gene Miller fornia members gathered at the Campo di Bocce res- from Raley’s Supermarkets and Dave Howald of the California Avocado Commission played a taurant and court in Livermore, Calif., to socialize while round. playing the Italian game of bocce ball. The event was the first of its kind by the FPFC, which holds more than a dozen networking activities each year. Currently, golf, bowling and horseracing (or at least betting on horseracing) are the sports of favor of the FPFC. And in the past, racquetball and tennis tournaments have been in the mix. FPFC President Carissa Mace said the Northern California event com- mittee for the association wanted to do something a bit offbeat and settled on an evening of bocce. There was no tournament just many friendly games among the participants as they boccied the night away and supped on Italian cuisine. Besides some fun games for expert and novice alike, the evening was punctuated by a rare West coast thunderstorm that lit up the sky as it quickly moved through the area. 28 FRESH DIGEST 2011 Oct-Nov Fresh Digest Final.indd 28 9/26/11 5:28:57 PM
Shawn Dagen of Edge Sales & Marketing JJ Garcia of Quebec Distributing Co. demonstrates that bocce requires shows good form. determination and focus. Bocce Ball Sponsors Cabo Fresh Litehouse Foods Mann Packing Company Marzetti The Oppenheimer Group Paramount Farms/POM Wonderful Marla Mignacco, Nor-Cal Produce, Inc., celebrates a victorious roll. october / november 2011 29 2011 Oct-Nov Fresh Digest Final.indd 29 9/26/11 5:29:08 PM
L to R – Marylou Ureta from L to R – Teresa Estrada & Lisa Paramount Farms/POM Wonderful, Davis of Edge Sales & Marketing husband Jim Ureta – Frank with Frank Azevedo of Mann Azevedo of Mann Packing Co, Inc. Packing Co., Inc. and Shawn Dagen of Edge Sales & Marketing. Dave Moen (left) and his wife, Kim, of CDS Distributing talk bocce ball with Dave Howald of the California Avocado Commission, who, according to rumor, has a Pentanque court in his back yard, which is the French equivalent of bocce ball. Kristyn Lawson, Cabo Fresh, laughs with Mark Klein, Impact Sales; Angie Moen, Litehouse Foods; and Gene Miller of Raley’s with Darryl Bollack, Impact Nannette Anderson of Edge Sales. Sales & Marketing 30 FRESH DIGEST 2011 Oct-Nov Fresh Digest Final.indd 30 9/26/11 5:29:28 PM
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