172
MARCH 2009 • VOL. 25 • NO. 3 • $9.90 inside... PUNDIT LOOKS AT YOUNG T ALENT •WHOLESALERS FIND WAYS TO MAKE IT WORK •TRANSPORTATION •CALIFORNIA SPRING VEGETABLES CABBAGE SALES •BERRIES •CARROTS •AVOCADOS •REGIONAL PROFILE:SAN FRANCISCO •SWEET POTATOES •SPORTS SNACKS •FLORAL PRODUCT BALANCE MARKETING MERCHANDISING MANAGEMENT PROCUREMENT MASTERS OF MERCHANDISING SUPPLEMENT 8th Annual Starts on page 51

8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

MARCH 2009 • VOL. 25 • NO. 3 • $9.90

inside... PUNDIT LOOKS AT YOUNG TALENT • WHOLESALERS FIND WAYS TO MAKE IT WORK • TRANSPORTATION • CALIFORNIA SPRING VEGETABLESCABBAGE SALES • BERRIES • CARROTS • AVOCADOS • REGIONAL PROFILE: SAN FRANCISCO • SWEET POTATOES • SPORTS SNACKS • FLORAL PRODUCT BALANCE

M A R K E T I N G • M E R C H A N D I S I N G • M A N A G E M E N T • P R O C U R E M E N T

MASTERS OFMERCHANDISING

SUPPLEMENT

8th Annual

Starts on page 51

Page 2: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 43

Page 3: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

MAR. 2009 • VOL. 25 • NO. 3

COVER STORYTHE 21ST ANNUAL MYSTERY SHOPPER REPORT . . . . . 18

COMMENTARYTHE FRUITS OF THOUGHTGood Decisions In Bad Times . . . . . . . . . . . 8

RETAIL PERSPECTIVEHealth Is More Than Diet . . . . . . . . . . . . . 167

EUROPEAN MARKETProgressive Strides In Denmark Affect Produce Consumption . . . . . . . . . 168

IN EVERY ISSUETHE QUIZ . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

WASHINGTON GRAPEVINE . . . . . . . . 6

PRODUCE WATCH . . . . . . . . . . . . . . . . . 10

RESEARCH PERSPECTIVES . . . . . . . . 12

COMMENTS AND ANALYSIS . . . . . . 13

FLORAL WATCH . . . . . . . . . . . . . . . . . . 164

INFORMATION SHOWCASE . . . . . 169

BLAST FROM THE PAST . . . . . . . . . 170

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 3

FEATURESWHOLESALERS FIND WAYS TO MAKE IT WORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Wholesalers survive in an uncertain economy by tightening their reigns, changing their product offerings, increasing marketing tactics and continuing to put customers first.

TRANSPORTATION LOGISTICS FACE CHALLENGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40As the economy takes its toll, the trucking industry finds ways to remain relevant.

BEEF UP CALIFORNIA SPRING VEGGIE SALES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Get creative with promotional efforts this spring to buildprofits of California’s lineup of outstanding vegetables.

GREEN UP CABBAGE SALES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131Smart merchandising, proper pricing and quality packaging can build profits for this leafy favorite.

DEPARTMENTSMERCHANDISING REVIEW: Top 10 Ways To Boost Berry Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133Generate excitement, sales and consumer traffic in the berry category through effective merchandising and marketing.

MERCHANDISING REVIEW:Five Ways To Sell More Carrots . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140Boost sales by offering bountiful displays with plenty of variety and value-added carrots.

MERCHANDISING REVIEW:Merchandise Avocados With Ease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144Creative marketing and regionalized consumer education can significantly boost avocado sales.

FOODSERVICE MARKETING: Sweet Potatoes Take Center Stage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159Foodservice operators take advantage of the low cost of sweet potatoes in many unique ways.

DRIED FRUIT AND NUTS:Score Big With Sport Snacks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162Good nutrition adds appeal to dried fruit and nut sport snacks.

FLORAL & FOLIAGE MARKETING:Keep Sales Fresh With Product Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings.

SPECIAL FEATURESFROM THE PAGES OF THE PERISHABLE PUNDITLesson For Hiring Companies: Give Young Talent Wings. . . . . . . . . . . . . . . . . . . . . . . . . . . 14

PMA LEADERSHIP SYMPOSIUM . . . . . . . . . . . 16

REGIONAL PROFILE: SAN FRANCISCOSan Fran Sophisticate . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151San Francisco terminal markets will continue to be in high demand, despite a troubled economy and industry happenings.

Coi Puts Produce On Parade . . . . . . . . . . . . . . . . . . . . . . 157Chef Daniel Patterson approaches his produce-centric cuisine with innovation and admiration.

Andronico’s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158A longstanding institution revamps itself to stay current in the San Francisco food scene.

32

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.

158

MASTERS OF MERCHANDISING

SUPPLEMENT

8th Annual

Starts on page 51

Page 4: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

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

WIN A PAIR OF BUSINESS CLASS NOISE-CANCELLING HEADPHONESEffectively eliminating over 85 percent of ambient noise, the headphonesfeature a detachable cord providing the added option of listening to music.

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

Name __________________________________ Position ____________________________

Company ____________________________________________________________________

Address ______________________________________________________________________

City__________________________________________________________________________

State ____________________________________ Zip _________________________________

one ____________________________________ Fax _________________________________

THIS MONTH’S WINNER:Joseph CavalierPresident\Cavalier-Gulling-Wilson Co. Inc.Cleveland, OH

PRODUCEQUIZ

SPONSORED BY

How To WinTo win the PRODUCE BUSINESS Quiz, the firstthing you have to do is enter. The rules aresimple: Read through the articles andadvertisements in this issue to find theanswers. Fill in the blanks correspondingto the questions below, and either cut alongthe dotted line or photocopy the page, andsend your answers along with a businesscard or company letterhead to the addresslisted on the coupon. The winner will bechosen by drawing from the responsesreceived before the publication of our May issue of PRODUCE BUSINESS. The winnermust agree to submit a color photo to bepublished in that issue.

P R O D U C E B U S I N E S S • M A R C H 2 0 0 94

MM AA RR .. 22 00 00 99 •• VV OO LL .. 22 55 •• NN OO .. 33

President & Editor-in-Chief • JAMES E. [email protected]

Publisher/Editorial Director • KEN [email protected]

Managing Editor • JAN [email protected]

Special Projects Editor • MIRA [email protected]

Assistant Editor • AMY [email protected]

Assistant Editor • JENNIFER LESLIE [email protected]

Circulation Manager • KELLY [email protected]

Executive Assistant • FRAN [email protected]

European Bureau Chief • ROBERT [email protected]

Production Director • DIANA [email protected]

Production Leader • JACKIE TUCKER

Production DepartmentFREDDY PULIDOJOANNA ARMSTRONG

Trade Show Coordinator • JACKIE [email protected]

Contributing EditorsMEREDITH AUERBACH, CAROL M. BAREUTHER, DUANECRAIG, MIKE DUFF, JACQUELINE ROSS LIEBERMAN, LISALIEBERMAN, COLLEEN MCGINN, JODEAN ROBBINS, BAR-BARA ROBISON, JON VANZILE

AdvertisingERIC NIEMAN, ASSOCIATE [email protected] [email protected]

SANDY [email protected] [email protected] [email protected] Department MarketingE. SHAUNN [email protected] Solutions and Integrated SalesJIM [email protected] insertion orders, payments, press releases,photos, letters to the editor, etc., to:PRODUCE BUSINESSP.O. Box 810425Boca Raton, FL 33481-0425Phone: 561-994-1118 Fax: 561-994-1610E-mail: [email protected]

PRODUCE BUSINESS is published byPhoenix Media Network, Inc.James E. Prevor, Chairman of the Board P.O. Box 810425Boca Raton, FL 33481-0425Phone: 561-994-1118 Fax: 561-994-1610Entire contents © Copyright 2009Phoenix Media Network, Inc.All rights reserved.Printed in the U.S.A.Publication Agreement No. 40047928

With 35 years of experience in the pro-duce industry, Joseph Cavalier, president ofCavalier-Gulling-Wilson Co. Inc., knows theimportance of building positive relationshipswith the people he works with on a dailybasis. In business for 85 years, the family-owned and operated wholesale distributor isbased in Cleveland, OH.

“We work with just about every producecommodity except for bananas,” heexplains. “There’s a lot of characters in thisindustry. I enjoy developing and maintainingbusiness relationships with my customersand shippers.”

As president, Joseph is responsible for thesales and management side of the company.He says keeping up with his customers’needs is one of the major keys to being suc-cessful in the produce business.

A PRODUCE BUSINESS reader since its incep-tion or a brief time thereafter, Joseph likes toread it from cover to cover. “It gives you thewhole ball of wax!”

As the winner of the PRODUCE BUSINESSQuiz, Joseph wins a survivor’s pack.

QUESTIONS FOR THE MARCH ISSUE1) How much money has PFK raised to benefit children? __________________________________

2) How many weekly sailings does Crowley conduct? _____________________________________

____________________________________________________________________________________

3) How many years has Ocean Mist been growing artichokes? _____________________________

____________________________________________________________________________________

4) What is the phone number for The Live Gourmet Family? ______________________________

____________________________________________________________________________________

5) What is the slogan for the U.S. Sweet Potato Council? ___________________________________

____________________________________________________________________________________

6) What is the color of Calavo’s “Ripe Now” sticker? _______________________________________

Page 5: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 63

Page 6: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Last month, the 111th Congress anda new Administration took officeand prepared to move forward withmuch-publicized change on manyfronts. As new legislation hits the

House and Senate floor, many industrieswith representation in Washington findthemselves closely monitoring what effectsthis change will have. While there is a greatdeal of promise in the air in Washington,D.C., there is also a definite feeling of appre-hension on behalf of United Fresh and alliedproduce industry partners surrounding oneparticular piece of legislation.

The Employee Free Choice Act (EFCA),or “card-check” legislation, has seen itsprospects for passage vastly improve afterthe November elections. Although the EFCAhas been introduced in successive sessionsof Congress, it has, to date, failed to gain thenecessary votes for passage. Additionally,strong opposition from the Bush Administra-tion ensured a veto if the legislation waspassed.

The recent elections have significantlyimproved the prospects for the EFCA, how-ever. Current Congressional sponsors arevery close to having the necessary votes forpassage. Given President Obama’s previousco-sponsorship of the legislation and hisstrong advocacy on the campaign trail, aveto seems highly unlikely.

United Fresh is strongly opposed to thegoals and objectives of EFCA. The inaccu-rately named legislation will only serve tolimit employees’ freedom to choose whonegotiates on their behalf. Backers of thelegislation seek to modify the 75 year-oldNational Labor Relations Act (NLRA), signed

by Franklin Roosevelt, by eliminating feder-ally overseen secret ballot elections inwhich workers decide whether or not toestablish a union as a collective bargainingrepresentative. As an alternative, unions

want to circulate petitions to employees,thereby keeping a watchful eye on who doesand does not support the organizing effort.

Adding to concerns, upon certification ofa union under the EFCA, employers arestripped of the authority to negotiate andagree to an initial collective bargaining

agreement. If the employer and union can-not come to agreement after the unusuallyabbreviated timeframe of 120 days, the mat-ter would be referred to binding arbitrationwith a mandatory contract ultimately beingforced upon the employer. Furthermore, thelegislation also includes language sanction-ing employer actions against union organiz-ing, while at the same time requiring nosuch accountability on the part of unions fortheir actions during workplace organization-al campaigns.

The elimination of union employees’right to federally overseen, secret ballotelections for the purposes of union certifica-tion is a massive issue for the fresh andfresh-cut produce industry, as well as theallied industries that help ensure the suc-cess of the businesses that United Fresh andother industry organizations represent. Theelimination of this right will erode employ-ees’ workplace security, expose workers tointimidation and most importantly, upsetthe precarious balance between the interestsof union leadership and those of employers.

In the interest of educating our industrypartners about this potential harm, UnitedFresh has launched an online resource cen-ter dedicated to the effort against card-checklegislation. Additionally, we have joinedwith like-minded stakeholders on the steer-ing committee of the Coalition for a Democ-ratic Workplace, a broad-based industrygroup strongly opposed to the EFCA.

United Fresh will continue to representthe produce industry and all allied indus-tries in an effort to defeat these legislativeand regulatory actions that seek to under-mine the most basic of worker’s rights. pb

Employee Free Choice ActThreatens The Produce Industry

A report on the inside happenings of government.

WASHINGTON GRAPEVINE

Passage of card-check legislation will:• Eliminate secret ballot

elections• Impose binding

arbitration if a contract isnot ratified during a trun-cated negotiating period

• Restrict employers’actions during workplaceorganizing campaigns

P R O D U C E B U S I N E S S • M A R C H 2 0 0 96

SUBMITTED BY KAM QUARLES, VICE PRESIDENT, GOVERNMENT RELATIONS & LEGISLATIVE AFFAIRS • UNITED FRESH PRODUCE ASSOCIATION

Page 7: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 93

Page 8: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 98

Good Decisions In Bad Times

When times are good, businesses often sustainmoney-losing operations. Partly it is becausethey can, as they have other businesses produc-ing good profits. Partly it is out of an abundanceof hope that with just a little more investment

and tolerance of a bit more in the way of losses, the business willturn around and become profitable. Partly it is because closingdown losing operations is often emotionally difficult, and it maymean admitting one was wrong or telling people who may havedone no wrong themselves that they are fired.

Bad times tend to simplify such decisions. If core operations areno longer producing bountiful profits, the decision to not spendmoney one doesn’t have is fairly easy. Theseare company-by-company decisions, but on theproduction side of the produce industry theytend to group around a common theme: Firethe customers or customer segments that won’tpay enough to allow you to make a living.

Tanimura & Antle was ahead of the curveon this, announcing last winter that it would nolonger sell to unaffiliated processors as the busi-ness wasn’t profitable. The months since haveseen a bloodbath in Salinas, with River Ranchbasically being taken over by the banks andcompany after company engaging in layoffs.Chiquita stock tumbled recently in no smallpart because of the results from its FreshExpress subsidiary, which included significantvolume declines based on a decision to stopserving foodservice customers that are unwill-ing to pay a profitable price.

Now it is, of course, easy to fire customers and hard to get newones. So careful attention has to be paid as to why these customersare unprofitable. If a producer’s food safety program is world class,its traceability investment is substantial and its focus on sustainabil-ity is meaningful, perhaps it may well be difficult to sell to cus-tomers that are not willing to pay for these values. In circumstancessuch as these, the whole industry has a stake in understanding whysegments of the business are not profitable. In all too many cases, itis about buyers not being mindful of supply chain responsibilities.

Sometimes well capitalized producers intentionally sell cheap.They absorb losses as part of a “last man standing” philosophy,thinking everyone else will reduce production while they will gainmarket share until they are in a position to raise prices. It is a theo-ry, but usually markets can remain cheap long enough to exhaustanyone’s capital. Mostly, though, producers sell cheap not out ofany grand strategy but because they don’t know what else to do.

Some very progressive firms have transformed their whole busi-

nesses, striving to get away from being a pure commodity shipper.Producers such as Sun World have done this by focusing on propri-etary varieties, and firms such as Mann Packing morphed intovalue-added powerhouses.

Sometimes it is as simple as deciding to no longer invest in areasearning inadequate returns and gradually transitioning to moreprofitable ventures. Of course, looking at the situation this wayrequires one to define oneself and one’s business in less limitedterms. If one is simply only a “round, white potato farmer,” thenone will certainly face challenges.

But that is very much an old version of the business. Theyounger participants are often very flexible, not looking to mimic

Grandpa but looking for opportunity, whichmay be the silver lining to the recession. If thiseconomic slump forces us to look at what weare really good at, to think about what cus-tomers really need, to open our eyes to howconsumers think and to consider how newtechnologies can intersect with new businessstructures to create new opportunities, thenthe recession will lay the groundwork for greatsuccess in the years to come.

It can take courage to tell a customer no.But time and again, we have seen good produc-ers get called back when the cheaper alterna-tive turns out not to be so great.

One place producers need to start improv-ing is gathering better numbers. It actually isnot always easy to know which customers arereally profitable. One customer may bargain

hard for a bargain price, but live with it. Another chain may seem-ingly let you have more margin, but bother you every week for anew fee or booth at a trade show or a hundred other demands. Onecustomer may make orders and stick to them; another can changethem 50 times and then reject half the product. Only careful analy-sis can give insight as to where the real profit lies.

And, of course, today is not all that matters. Many companieswouldn’t talk to Bruce Peterson when he joined Wal-Mart, and ithad all of seven supercenters; others partnered with Wal-Mart rightaway. It is not a coincidence that some of those early partners arenow the biggest players in the industry.

Nobody wants to speak well of a recession. People lose jobs,homes, businesses, and many get hurt very badly. Yet the truth isthat in tough times we all make the tough decisions that enable usto get better. What seems like terrible loss in closing operations isreally like pruning little branches that were sapping strength fromthe main trunk. If you clear them clean, the fruit comes in largerand sweeter than ever. pb

By James Prevor President & Editor-in-Chief

THE FRUITSOF THOUGHT

In tough times

we all make the

tough decisions

that enable us to

get better.

Page 9: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 72

Page 10: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 910

Reader

Reader Service No. 300 Reader Service No. 300

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]

PRODUCEWATCH

MURANAKA FARM INC.MOORPARK, CARick Goodside was hired as sales executive. Anindustry veteran with more than 20 years of buy-ing and selling experience, he previously workedas senior buyer of produce for Jack in the Box. Heis also a former member of the United Fresh Fruitand Vegetable Association's Foodservice Board.

Spencer Osborne was hired as sales executive. Anindustry veteran with more than 20 years in thefoodservice and retail sectors of the industry, hehas held various positions throughout the countryin sales, purchasing and operations. He previouslyworked for FreshPoint Inc.

BROOKS TROPICALS LLCHOMESTEAD, FLBilly Pritchett was named vice president of oper-ations. In his new capacity, he will manage thecompany's Belize operations and Homestead pack-ing and distribution facilities. He has worked forBrooks since January 1991. After a series of pro-motions in the 1990s, he was promoted to vicepresident of Homestead packing-house operationsin 2004.

NMB ELECTS NEW OFFICERSThe National Mango Board (NMB), Orlando, FL,elected its 2009 officers. They include chair IsabelFreeland of Coast Tropical Distributors; vice chairJohn-Campbell Barmmer of Chestnut Hill Farms;treasurer Sue Duleba of GM Produce Sales; and sec-retary Bonifacio Bustamante Hernandez of CCTropicals SA de CV.

MAC AWARDS APPLE QUEEN TITLEThe Michigan Apple Committee (MAC), DeWitt,MI, awarded Amber Nyblad of Casnovia (right)the title of 2009 Michigan Apple Queen at the 57thAnnual Michigan Apple Queen Pageant. A panelof judges selected Nyblad based on poise, appleknowledge and beauty following a private inter-view.

SALYER AMERICAN FRESH FOODSMONTEREY, CATony Incaviglia was hired as a sales team member.He will take the lead in green onion commoditysales. An industry veteran with more than 12 years ofsales experience in the produce market, he mostrecently worked for Misionero Vegetables. Accordingto the company, Incaviglia has a proven track recordin the produce industry and possesses a vast array ofindustry expertise.

Reader Service No. 303

Reader Service No. 305

WELL PICT REVAMPS WEB SITEWell Pict Berries, Watsonville, CA, updated andimproved its Web site to include more informa-tion and resources. Retailers can find an array ofinformation on Well Pict's product line, availabil-ity and regularly updated merchandising ideasto help boost profits in the produce department.Well Pict began shipping winter strawberriesfrom Florida in January.

FITNESS EXPERT LAUNCHES ‘WIDGET’FOR HEALTH-CONSCIOUS CONSUMERIdaho Potato Commission (IPC), Eagle, ID,released Dishin' Nutrition With DeniseAustin, a portable, personal lifestyle assistantfor health-conscious consumers. Availableonline at IPC's Web site, the widget serves upsimple health/fitness tips and recipes thatwill inspire consumers to incorporate health-ful habits into their everyday activities.

Reader Service No. 304

ANNOUNCEMENTS

Reader Service No. 302

TRANSITIONS

GROWER DIRECT MARKETING LLCSTOCKTON, CATroy Mesa was hired to manage the company'snewly opened eastern U.S. branch office inPompano Beach, FL. An industry veteran with 24years of experience working in produce, he will beresponsible for handling direct sales for GrowerDirect Marketing, a year-round shipper of freshcherries, blueberries, asparagus and apricots.

MISSION PRODUCE INC.OXNARD, CASteven Martin was hired as director of businessdevelopment. He will work closely with retailersand produce wholesalers throughout NorthAmerica to introduce Mission's new ultra-high-pressure guacamole. An industry veteran withmore than 40 years of experience, including 16years at Dole Food Co. Inc., he has worked on thesupply side and in retail.

SWEET ONION PACKAGINGSweet Onion Trading Co., Palm Bay, FL, began ship-ping medium Sunbrero brand Mexican sweet onionsgrown from Granex seed in new, 2- and 3-pound,orange and green vertical D-pack recipe bags. A hitwith both produce managers and consumers in pre-liminary market tests, the easy-to-display packagingfeatures sweet onion recipes by Chef Billy Parisi.

DIP-N-GO CUPSPWP Industries, Vernon, CA, introduced the Dip-N-Go, a hinged, 10-fluid ounce, tamper-resistant cup. Itlooks like a standard, straight-walled container with alid, but the lid can be filled with a variety of dips andsauces and transformed into a dipping cup whenopened and snapped into the cup rim.

NEW PRODUCTS

Reader Service No. 301Reader Service No. 300

Page 11: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 11

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]

PRODUCEWATCH

SALYER PALLETS GO "GREEN"Sayler American Fresh Foods, Monterey, CA,switched from using wood pallets to light-weight, durable, hygienic, all-plastic palletsembedded with radio frequency identification(RFID) tags from iGPS. The change marks asignificant technological advantage in Salyer'sdomestic distribution systems while support-ing efforts for environmental sustainability.

APEAM MARKETING CAMPAIGNEXCEEDS EXPECTATIONSThe Avocados Producers And Exporting PackersAssociation of Michoacán (APEAM), Los Angeles,CA, announced the success of its fully integratedmarketing campaign, which reached more than301 million general market and Hispanic con-sumers between Nov. 17 and Feb. 2. During thepromotion, avocado sales increased 79 percent inparticipating stores in Texas and 25 percent inparticipating stores in Chicago.

NPC ANNOUNCES TWONATIONAL POTATO AWARDSThe National Potato Council (NPC), EastGrand Forks, MN, awarded MarkThompson (left), co-chair of the NorthernPlains Potato Growers Association(NPPGA), the NPC Seed Grower of theYear Award. NPC also awarded GreggHalverson (right), who is involved in sev-eral potato organizations, theEnvironmental Stewardship Award.

PFK RAISES MORE THAN$162,000 FOR KIDSProduce For Kids (PFK), Orlando, FL,raised more than $162,000 this past fall aspart of the "Eat Smart For a Great Start"campaign. Five participating retailers part-nered with 25 produce companies to makea monetary donation. All donated fundsbenefit PBS KIDS and support PFK' efforts to provideeducational content, resources and outreach materialsthat promote healthful eating behavior among kids.

IMAGINATION FARMS PROMOTESVALUE-ADDED SECTIONImagination Farms LLC, Indianapolis, IN, launched4-foot Disney-themed, refrigerated sections with POSand modular product placement to draw moms andkids to its Disney Garden line of products. Someretailers who have incorporated the kid destinationinto their produce departments have reported dou-ble-digit growth across value-added Disney GardenSKUs.

DMA SOLUTIONS LAUNCHES BLOGDMA Solutions Inc., Irving, TX, intro-duces The Core, an online blog dedicatedto connecting, inspiring and engagingcreative minds within the fresh produceindustry. The blog features best practices,business-planning strategies, recipes aswell as a question-and-answer section.The Core will be published weekly tosubscribers who sign up online.

YETZEN CONSULTING CREATESCHILEAN PRODUCE WEB SITEYetzen Consulting, Las Condes, Santiago,Chile, launched Portal Fruiticola, a Website providing valuable daily decision-making information and centralizedcommunication for the Chilean produce industry. TheWeb site allows users to access daily updates on marketprices, economic market data, weather information and avariety of tools.

DOLE RECEIVES GOOD HOUSEKEEPING AWARDDole Fresh Fruit Co., a Westlake Village, CA-basedsubsidiary of Dole Food Co. Inc., announced thatDole vitamin D Portobello mushrooms were select-ed by Good Housekeeping magazine as one of the Top10 Very Innovative Products of 2009. The magazineshowcased Dole's award-winning products in itsFebruary issue and on its Web site.

CAC ANNOUNCES DISPLAYCONTEST WINNERSThe California Avocado Commission (CAC),Irvine, CA, awarded 15 produce managers aspart of its seasonal display contest. ConductedMay 12 through Sept. 30, the contest drewmore than 260 entries. Luis Alcantor ofAlbertsons in Southern California (right)earned the grand prize in a random drawingamong all qualified entries.

CURRY & CO. ROLLS OUTMARKETING PROGRAMCurry & Co., Brooks, OR, launched its“Favorites” program aimed at building excite-ment in the onion category by not only provid-ing a premium onion but by also supporting itwith creative and colorful graphics and market-ing. The year-round program includes reds,whites and yellows. The program is available inhigh-graphic bags in a variety of sizes.

Reader Service No. 306

Reader Service No. 311

Reader Service No. 312 Reader Service No. 313

Reader Service No. 315

Reader Service No. 317

USHBC REPORTS SUCCESSFULMARKETING EFFORTSThe U.S. Highbush Blueberry Council(USHBC), Folsom, CA, continued to increaseblueberry consumption through a variety ofmarketing programs in 2008. Its winter mar-keting kit, "Lighten Up the New Year," was dis-tributed to more than 800 food and lifestyleeditors. The council projects a record 2008highbush blueberry crop of more than 413 mil-lion pounds, up from the 357 million poundsproduced in 2007.

MAXCO AND PROACTIVEFORM ALLIANCEMaxco Supply Inc., Parlier, CA,and Proactive Packaging & DisplayInc., Ontario, CA, signed a multi-year, strategic alliance agreementto better serve the agricultural industry's packagingneeds by producing premium packaging with as littleimpact on the environment as possible. This alliancewill provide for superior package contraction and graph-ics for consumers.

Reader Service No. 307

Reader Service No. 316

Reader Service No. 310

Reader Service No. 314

ANNOUNCEMENTS

Reader Service No. 308 Reader Service No. 309

Page 12: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 912

The incredible see-sawing of this win-ter’s weather in Delaware brings tomind the rollercoaster ride our industryhas faced the past year, with costinputs soaring up and then plunging

down along with the global financial crisis.Where inflationary pressures consumed ourattention last summer, we now read dailyabout deflation as the current threat to watch.Are we in the produce industry better protect-ed than most businesses to adjust to thisrollercoaster ride?

The results from Produce Marketing Asso-ciation’s (PMA) latest consumer survey signalrelief sprouting from under the cold economicdownturn that took root last fall. Consumerresponses show that, in general, fresh fruitsand vegetables have been insulated from theharshest blows of the horrible economic con-ditions. In fact, the vast majority of the 500shoppers surveyed by Opinion Dynamics forPMA say they have maintained their produceconsumption at around the same level as sixmonths prior to the survey, which was con-ducted Dec. 29-30, a time when holidayspending can add insult to injury for alreadyrecession-stretched shoppers.

One of the most interesting insights intoshopper behavior uncovered by this latestresearch is that part of their steady consump-tion may be due to the fact that an over-whelming 95 percent of the primary shoppersample expects prices of fresh fruits and veg-etables to naturally fluctuate during any givenyear. In other words, it is precisely becausemost fresh produce is viewed as a seasonalproduct whose price is impacted by shifts inweather and other factors that consumersgive us some leeway in this poor economy.That fresh fruits and vegetables afford goodeconomic and nutritional value because theypack many essential nutrients at a low costper serving should only add to consumer loy-alty these days.

At the same time, I need to draw yourattention to continuing signs that I previouslymentioned in my State of the Industry speechlast October, which is that more consumersare looking at frozen foods as a cost-driven

Economic Challenges And Opportunities

alternative to fresh produce. We have toremain very watchful of the competitive chal-lenges posed by some frozen products, whosesensory quality, price points and conveniencehave improved markedly.

Retailers are being pressed to adjust toconsumer demands for greater value through-out the store. Our research shows that pro-moting customer loyalty and purchases by re-exploring coupon solutions could go a longway in this economic downturn. Forty-threepercent of the sample says they would beextremely likely to use coupons for produce,contrasted with only 33 percent who say theyare not likely at all to use coupons.

Among the coupon clippers, circulars aretheir most likely source, followed next by mailand then in-store distribution. New technolo-gy offerings are still a small factor here —even in this age of constant connectivity,respondents cited e-mail and mobile devicesas far less popular coupon-delivery vehicles.It will be very interesting to watch how thisnumber changes over time once shoppersbecome more comfortable with their portabledevices.

The fundamental demand for our freshproducts is undeniable, and we have so manysocial trends on our side to drive demand. Butwe must also keep vigilant and focusedthrough the current market turbulence longenough to plan for our future. In January, Iwas struck by the outstanding turnout andenergetic dialogue at the Leadership Sympo-sium hosted by PMA’s Foundation for Indus-try Talent and co-sponsored by PRODUCE

BUSINESS and Cornell University. In the depths of winter, and with the

economy at its darkest, 100 industry lead-ers came together to discuss the skills need-ed to build a stronger produce industry.This was yet another sign of the enduringoptimism of our industry, of businesses thatare built by people looking ahead, ratherthan dwelling on the past. Whether at theSymposium, the upcoming Produce Solu-tions Conference in Nashville, TN, or theFoodservice Conference & Exposition to beheld July 24-26 in Monterey, CA, industryleaders continue to look for valuable educa-tion and relationship-building opportunitiesto spark ingenuity.

I am always thrilled to see member com-panies capitalizing on PMA’s free resources,such as the crisis management and productrecall guides and the complete consumerresearch reports highlighted monthly in thiscolumn. In the past two months alone, Ihave presented research to chronicle con-sumers’ produce purchase behavior beforeand during an escalating recession, achronicle that will build in the comingmonths. This research can be routinely andproactively mined by members seeking tounderstand consumer behavior.

Spring weather brings rain as much as itdoes warm, refreshing breezes, and therecession’s unrest will undoubtedly stirmore threatening days ahead. But like spy-ing the season’s first robin, this recent newsof consumer’s produce loyalty during thetoughest financial times is a welcome sign.

It is precisely because most fresh produce

is viewed as a seasonal product whose price

is impacted by shifts of weather and other

factors that consumers give us some leeway in

this poor economy.

Page 13: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 13

approach marketing and business duringchallenging economic times.

When we were urging people to attend theSymposium, we knew that many woulddecline to attend, pointing to the recession. Sowhat? The program is limited to 100 industryexecutives. That is such a small percentage ofthe industry that macroeconomic conditionsare only trivially important, compared to theactual efforts made to attract attendees.

This is true for most produce companies.The vast majority of companies in the indus-try have sales that are insignificant comparedto the entire scope of the trade. So whetherconsumers buy more or less is typically notthe determinant of success for individualplayers. That’s a question of attitude, intelli-gence and hard work.

So we enthusiastically join with Bryan insaying that retreating into one’s shell isextremely counter-productive. Read. Go toconferences. Visit customers. Think.

Focus not on the tiny dip in demand youmight have experienced. Concentrate insteadon the percentage of the industry volume thatyou are not selling. In such a highly frag-mented trade, that is almost always over 99%of the industry volume.

All of a sudden, you will find your attitudechanging. Instead of feeling a loss, you willrealize how vast the opportunity is beforeyou. Engage that opportunity and your roadto success suddenly becomes clear.

That consumers report produce con-sumption remaining steady is not par-ticularly surprising. People change eat-ing habits slowly, if at all, and produceis not the kind of big-expense, high

profile item — such as, say, lobster — thatconsumers are likely to focus on giving up foreconomic reasons.

Despite the trade’s always-present interestin consumption, however, asking about con-sumption may be the wrong question for theindustry in recessionary times.

After all, it is possible to maintain one’sconsumption by buying at less expensivevenues, purchasing items on sale, switchingfrom fresh-cut to do-it-yourself bulk produceand buying items that are less likely to bethrown out. So consumption, which is a mea-surement in pounds, can be flat or evenincreasing, while dollars spent can decrease.

The issue is not just “share of stomach,”it’s also “share of wallet” — and that’s a sub-ject for PMA another day.

The challenge posed by frozen foods issubstantial and growing. Quality hasimproved, and the ability exists to buy prod-uct when and where it’s cheap and then passon economies to the consumer. Add in thevirtual elimination of the waste factor andone sees a formidable competitor.

On the other hand, frozen food has sus-tainability, carbon footprint and food securityissues, along with the inherent limitations infrozen food merchandising. So fresh producehas its weapons, but one wonders if irradia-tion — spoken of mostly in the context offood safety or insect disinfestations — willnot one day save fresh produce by extendingshelf-life adequately to make fresh less likelyto be wasted.

Although we have little doubt that manywould use coupons if offered, we see onlylimited application in fresh produce. In pack-aged goods, a marketer can plan a retail priceby building in a margin for marketing efforts,including coupons. In fresh produce, itemsare typically sold at a market price, so there isno opportunity to build in excess margin.

The few successful couponing schemes

tied to fresh produce have usually been cross-merchandising programs, such as bananasand cereal, or salad dressing and salad veg-etables, in which the cost of the coupon ispaid for by the packaged product.

New technology, particularly store-basedcoupons, helps solve the other couponingproblem: the lack of availability of specificbrands in all outlets. For example, as big asthe Chiquita brand may be, at any given timemost supermarkets don’t stock Chiquitabananas. So giving out coupons in mailersand newspapers is a recipe for consumerfrustration. What’s more, since stores typical-ly only carry one brand at a time of most pro-duce items, it would be nearly impossible forevery chain to carry Chiquita bananas due tothe simple fact that the brand itself doesn’thave enough bananas. So couponing in pro-duce will have to evolve as some kind ofstore-based promotion using new technology.

Couponing is designed to get price-sensi-tive consumers to buy one’s product, withoutlowering the price for everyone. It has a place,but adds costs and complexity, and seemsunlikely to dramatically transform the pro-duce industry anytime soon.

As a partner in the Leadership Sympo-sium, we were actively involved in gettingindustry leaders to Dallas (see our photomontage on page 16). Does the high atten-dance reflect optimism? Yes, but it may actu-ally teach a more important lesson on how to

Engage The Opportunities

Focus not on the tiny dip in demand you

might have experienced. Concentrate

instead on the percentage of the industry

volume that you are not selling. In such a highly

fragmented trade, that is almost always over 99

percent of the industry volume.

Page 14: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 914

From The Pages Of The Per i shable Pundi t

We wrote this piece in San Francisco after we spent a littletime visiting with Matthew Enny, a relatively new mem-ber of the produce industry who works for Duda Farm

Fresh Foods. We gave him a pass to visit with us at the Fancy FoodShow in San Francisco where Pundit sister publication, DELI

BUSINESS, has long exhibited.Matthew Enny is something of a poster

boy for the PMA Foundation for IndustryTalent (PMAFIT). He went through thePack Family/PMA Career Pathways Fund,which brings promising students to thePMA convention each fall, eventually tak-ing a position with Duda working in Sali-nas. To put it another way, he is a living,breathing example of what PMAFIT is try-ing to do — raise awareness of the produceindustry among college students so thatthey will consider careers in produce.

Last year, Matt attended the LeadershipSymposium in Dallas, which is producedby a partnership between PMAFIT, CornellUniversity and PRODUCE BUSINESS — and wewrote about the Symposium in previousposts. Last year, we also wrote about Matt’sattempt to blog about the Symposium.

Matt came back this year to give theSymposium another try. In chatting withMatt we learned that, still working forDuda, he had relocated to San Francisco,which is how we came to suggest himbroadening his horizons in the food indus-try by checking out the Fancy Food Show.

Yet in the fact that Matt is now living inSan Francisco, we found an important les-son about the limitation of the PMAFITeffort and the type of change likely to berequired if the industry is going to be successful at attracting andretaining quality employees.

Matt is a young, single man, and he requested permission torelocate to San Francisco because he wanted to have a more activesocial life than he found in Salinas.

He is proud to represent Duda and thinks the world of Bob Gray,Duda’s CEO, and he didn’t really mind Salinas and might well moveback there one day. Although Matt spoke only of “a more activesocial life,” we suspect he wouldn’t mind finding a wife and thenmoving back to Salinas to settle down and raise a family.

Obviously Duda thinks highly of Matt, as the company was will-ing to make a deal with him. He is working from home, but will

spend one week a month back in Salinas. The arrangement is alsofacilitated because San Francisco is only a couple of hours from Sali-nas and, in a pinch, they call Matt at 6:00 AM and he will be in theoffice before 9:00 AM. And finally, Matt’s job, which involves a lot ofnumber-crunching, doesn’t require him to be in the office.

Still, the important point is that an accom-modation had to be made, and Duda realizedthis. This is in line with the column wewrote recently in the December issue ofPRODUCE BUSINESS, titled “Attracting TalentBeyond The Abstract,” in which we pointedout that PMAFIT’s promotional efforts are tobe encouraged but, in the end, in order toattract good candidates into the produceindustry, we need to offer attractive jobs —and that is something only the private sectorcan accomplish.

This is not always easy to do. Some yearsago, the Hunts Point Market switched itshours of operation to become a day market,and buyers were banned from the propertybefore some specific morning hour. This wasa response to the difficulty the market wasexperiencing in attracting quality employees— even the sons of owners didn’t want topursue a career that involved mostly nightwork.

The experiment failed and the marketwent back to being primarily a night market.This was for good reason. The very nature ofthe market, where customers buy product inthe evening for early morning delivery totheir stores and restaurants, demands nightoperations, and the produce quality isenhanced when it is exposed to the coolnight air, not the heat of a New York summer.

So sometimes, operational realities make it essential that peoplework at certain times and in certain places.

Yet, this is not true all the time, and there is a danger for theindustry if executives think that the PMA Foundation for IndustryTalent can solve this problem all by itself. Companies need to thinkcarefully if they are creating jobs appealing enough to compete withother industries.

One wonders if in the story of Matthew Enny there might be apattern that could help a predominantly rural industry attractyoung workers who often have social and personal goals best servedin urban areas.

www.perishablepundit.com

From Jim Prevor’s Perishable Pundit, Jan. 22, 2009

Lesson For Hiring Companies: Give Young Talent Wings

One wonders if in the story

of Matthew Enny there

might be a pattern that

could help a predominantly

rural industry attract young

workers who often have

social and personal goals

best served in urban areas.

Matthew Enny

The most effective avocado displays are placed near other ingredients used tomake guacamole, such as tomatoes.

Page 15: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 91

Page 16: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 916

PMALEADERSHIP SYMPOSIUM

Front of the class

Jim PrevorPRODUCE BUSINESS

PERISHABLE PUNDITCarla Hempfleng

THE KROGER CO.Eric Nieman

PRODUCE BUSINESSErin Liu

COAST PRODUCE COMPANY

Jessica Peri-Cummings PERI & SONS FARMS

Debi Jacobs THE KROGER CO.

Lorri Koster, MANN PACKING, Maurice Totty, FOODBUYS,Robin Fisher, BOSTON MARKET, Garry Koppers, WEGMANS

Lisa McNeece, GRIMMWAY FARMS

Todd Bragg FOUR SEASONS PRODUCE

Manny Gomez and Patty Salcedo

DRISCOLLS

Victor RobeletCARLSON AIRFLO Back of the Class

Nick MascariINDIANAPOLIS FRUIT

In mid-January, PRODUCE BUSINESS partnered with Cor-nell University and the Produce Marketing Association topresent the Leadership Symposium, a unique conferencewhere industry leaders gathered to hear four high-poweredbusiness writers talk about their areas of expertise. One-hundred industry professionals from all segments went toDallas for two days to think “outside the box,” networkwith one another and learn about new ways to approachtheir businesses.

Page 17: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

PRODUCE BUSINESS is accepting nominations for its Fifth Annual 40 Under Forty Project, which recognizes the produce industry's top young leaders.

Honorees will be selected based on their professional accomplishments, demonstrated leadership and industry/community contributions. To be eligible, nominees mustbe under the age of 40 as of January 1 (People born after January 1, 1969).

To nominate someone, please fill out this form by March 1, 2009, and fax back to 561-994-1610.

Once nominated, the candidate will receive forms from us to fill out asking for detailed information. A candidate only needs to be nominated one time. Multiple nominations will have no bearing on selection.

ABOUT THE NOMINEE:

First Name ___________________ Last Name ____________________________Approximate Age ____________________________________________________Company __________________________________________________________Position ____________________________________________________________Address ____________________________________________________________City ______________________________ State ______Postal Code ____________Country ___________________________________________________________Phone ____________________________ Fax ____________________________E-mail _____________________________________________________________

In 100 words or less, describe why this person should be nominated:(You can use a separate sheet for this)__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Nominee's Professional Achievements:______________________________________________________________________________________________________________________________________________________________________________________________________

Nominee's Industry/Community/Charitable Activities:______________________________________________________________________________________________________________________________________________________________________________________________________

ABOUT THE NOMINATOR:First Name ___________________ Last Name ____________________________Company __________________________________________________________Position ____________________________________________________________Address ____________________________________________________________City ______________________________ State ______Postal Code ____________Country ___________________________________________________________Phone ____________________________ Fax _____________________________E-mail _____________________________________________________________

Nominator information is for our use only and will not be shared with candidate or have a bearing on selection.

For more information email: [email protected]

Page 18: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 918

As the economic downturn hits every corner of the United States,people are beginning to eat out less and head straight to theirnearest grocery store. Pacing the aisles of the produce depart-ment, you’ll find a cross-section of America — with many newcustomers who may not have been frequent produce shoppers

— hoping to cross off items on their lists before pulling up to the cashier. Here at PRODUCE BUSINESS, we want to be sure that produce department

staff across the country is knowledgably and helpfully engaging their customers.First of all, are they available when they are needed? Are they able to conversewith shoppers when encountered? Do they know the difference between kaleand Swiss chard? Would they be able to recommend a substitute for a rare SierraBeauty apple? Basically, are they prepared for a barrage of questions that newhome cooks might ask?

In an effort to better serve retailers and reveal the areas in which produce staffneeds to improve, PRODUCE BUSINESS conducted our 22nd Annual MysteryShopper Report. We grouped together a handful of our contributing and staffeditors and sent them to various stores across the country between late Decem-ber and early January. They were all armed with the same two recipes from epicu-rious.com: Shrimp and Avocado Salad with Grapefruit Vinaigrette and Sweet Pota-

toes, Apples and Braising Greens.Our editors were instructed to ask simple questions and try to engage the

employees in an effort to see how well each produce department is representedby its staff.

While our report is not meant to criticize any one store or chain, there are afew that could definitely take some pointers from our report, while others — asyou’ll see — set seriously high standards. Here’s what we found.

SOUTHEAST REPORTStore 1 - Knowledgeable About Avocados/Ginger Root

The first store I visited is part of a large regional chain known for its lowprices. I approached the produce department and immediately noticed anemployee stocking various leafy greens. With the recipe for Shrimp and AvocadoSalad with Grapefruit Vinaigrette in hand, I quickly found conventional grapefruitand I picked up two limes.

While I found Mexican avocados prominently displayed in a wooden bin, Idid not see any from California. I approached the employee, explained that I’mtrying to gather ingredients for a salad recipe and asked him if he had any Califor-nia avocados.

Page 19: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 25

Page 20: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 920

MMYYSSTTEERRYY SSHHOOPPPPEERR RREECCIIPPEESS

Sweet Potatoes, Apples and Braising Greens4 medium sweet potatoes, peeled and cut lengthwise into quarters,

then cut crosswise into 1⁄8-inch slices

5 tablespoons unsalted butter, plus 3 tablespoons melted

1 tablespoon fine sea salt

2 teaspoons freshly ground black pepper

3 medium baking apples, such as Sierra Beauty or Granny Smith,

peeled, cored and cut into quarters

6 cups loosely packed braising greens such as kale, chard or

collard greens, stems removed and torn into 2-inch strips

1/4 cup loosely packed fresh parsley leaves, coarsely chopped

PREPARATION:

Preheat oven to 400° F.

On foil-lined baking sheet, toss potato slices with 3 tablespoons melted butter, 1 teaspoon salt and 1⁄2 tea-

spoon pepper. Bake until cooked through and slightly caramelized, about 20 minutes. Keep warm.

In heavy medium skillet over moderate heat, melt 3 tablespoons butter. Add apples and sauté until tender

and golden brown, about 15 minutes. Keep warm.

In heavy large pot over moderate heat, combine remaining 2 tablespoons butter and 3 tablespoons water.

Add greens and sauté, stirring occasionally, until wilted, about five minutes. Lower heat to moderately low and

add sweet potatoes and apples. Continue cooking, stirring occasionally, until warmed through, three to four min-

utes. Stir in parsley, remaining 2 teaspoons salt, and 1 1⁄2 teaspoons pepper. Serve hot.

Source: Epicurious.com

Shrimp and Avocado Salad with Grapefruit VinaigretteFor Vinaigrette:

1/4 cup fresh grapefruit juice

2 teaspoons fresh lime juice

1/4 teaspoon finely grated peeled fresh ginger

1 tablespoon vegetable oil

For Salad:

1 pink or red grapefruit

1 white grapefruit

1/4 cup hazelnuts, lightly toasted and any loose skins rubbed off

1 tablespoon unsalted butter

2 firm-ripe California avocados

1 teaspoon fresh lime juice

1/2 pound large shrimp (8 to 10), shelled and deveined

1 tablespoon vegetable oil

2 cups baby spinach (2 ounce)

1/4 cup trimmed sprouts (preferably radish)

PREPARATION:

Make vinaigrette: Whisk together vinaigrette ingredients with salt and pepper to taste.

Assemble salad: Cut peel, including all white pith, from fruit with a sharp paring knife and cut segments free

from membranes. Halve enough grapefruit segments to measure 1 1⁄2 cups (reserve any remaining segments for

another use).

Coarsely chop hazelnuts. Melt butter in a 12-inch nonstick skillet over moderate heat until foam subsides,

then cook hazelnuts with salt and pepper to taste, stirring, until a shade darker, about five minutes. Transfer nuts

to paper towels to cool, reserving skillet.

Quarter avocados lengthwise, then pit and peel. Cut lengthwise into 1⁄4-inch-thick slices. Drizzle with lime

juice and season with salt and pepper.

Pat shrimp dry and season with salt and pepper. Heat oil in skillet over moderately high heat until hot but not

smoking, then sauté shrimp, turning them, until golden and just cooked through, about three minutes.

Toss together spinach, half of grapefruit segments and half of vinaigrette with salt and pepper to taste.

Arrange avocados and remaining grapefruit on four plates and top with shrimp, salad and sprouts. Spoon

remaining vinaigrette over salad and sprinkle with nuts.

Source: Epicurious.com

“California avocados are seasonal,” he replied.“They’re best in the summer time, but Mexican avo-cados are available year-round.”

Concerned about the taste, I asked him if usingMexican avocados would affect my recipe. He con-fessed it wouldn’t make a major difference, but heconsidered California avocados the better-tastingfruit between the two, adding, “Personally, I like theFlorida avocados because they’re bigger and meatierthan Mexican avocados. They’re lighter in color, too.”

I picked up two Mexican avocados that felt firmand asked the employee about peeling techniques.“They can be tricky,” he said. “Slice it in half, separatethe halves, strike the pit with a blade so the knife cutsinto it and twist the knife away. That should take thepit out. Use a spoon to separate the skin from thepulp, then slice it as you wish.”

I moved to the organic section and picked up apackage of baby spinach. A few steps to the right, Ipicked up what looked like just over 1⁄4-cup of Brusselssprouts. At the time, I didn’t realize the recipe pre-ferred Radish sprouts over Brussels sprouts. Had Inoticed earlier, I would have asked one of theemployees to differentiate the two.

I had trouble locating the ginger root so I asked asecond employee for assistance. She walked me tothe ginger root.

“How can I tell if it’s fresh?” I asked.“The darker and harder the skin, the stronger the

flavor,” she replied. “My recipe calls for finely-grated, peeled, fresh

ginger,” I noted. “What’s the best way to do this?”“I would suggest you use a cheese grater,” she

answered. “That should work just fine.”Both employees were helpful and quick to pro-

vide assistance. They were knowledgeable andanswered my questions as expected.

Store 2 - Helpful EncouragementThe second store I visited is part of a popular

regional chain that recently expanded its extensivepresence in the Southeast to focus on natural andorganic items. I entered the produce department withthe recipe for Sweet Potatoes, Apples and BraisingGreens. I saw two employees, one talking to a con-sumer and another stocking potatoes in the back.

I found several nicely displayed bins in the centerof the department. I picked up four sweet potatoesand I asked the man stocking potatoes if he knewwhat braising greens were.

“What exactly are you looking for? Turnip? Col-lards?” he asked.

“Collards will do,” I replied. “What about kale?Where can I find that?”

“Over here,” he said, pointing to a display, markedfor $3.99 each.

“Doesn’t that seem high to you?” I asked. “I don’tusually eat leafy greens, but I’m making a dish forpeople who do.”

“No, not really,” he stated. “Kale is very goodsautéed. You may like it.”

I picked up one bunch of fresh kale and thankedhim for his assistance. I turned to locate parsley and

Page 21: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 68

Page 22: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 922

quickly found it. By now, the younger employee wasdone talking with his customer, so I asked him aboutthe last produce item on my list.

“Do you have Sierra Beauty apples?” I inquired.“I don’t think so, but I’ll ask,” he said, walking over

to the first employee who was helping me earlier. “No, we don’t,” he said, “but the Granny Smiths

are good this time of year.”“Great,” I replied. “I’ll buy some. Thanks.”The employee at this store was helpful, but I

wished he would have offered a less expensive substi-tution item, such as loose braising greens, for thehigh-priced kale.

Store 3 - Friendly EmployeesThe third store I visited is part of a regional chain

of specialty markets with a European feel. The open-air market felt immediately inviting as I approachedthe produce department just to the right of theentrance. Before I had a chance to remove my recipefor Shrimp and Avocado Salad with Grapefruit Vinai-grette from my purse, an older female employeeasked me if there was anything I needed.

“Yes, I’m looking for pink or red grapefruit for asalad recipe. What’s the difference between the two?”

“Rio Star grapefruit from Texas is very sweet andhas a nice, red flesh to it,” she replied. “It’s very juicyand should go nicely in a salad.”

“I’ll go with that,” I said, picking up one piece offruit marked “Grown in Texas” and priced two for $3.

I soon located several bins full of nuts displayed in

bulk. I found one with toasted hazelnuts, filled a smallplastic bag and added it to my basket.

As I moved through the department, I picked upa lime, what looked like two cups’ worth of babyspinach and two Mexican avocados.

Realizing I overlooked the line “preferably radish”while reading the recipe at the first store, I decided toask the produce clerk if Brussels sprouts would work.

“I think so. They are right over there,” she replied,pointing to a semi-hidden display of Brussels sprouts.

“Thanks, but do you have Radish sprouts?” “Sometimes we do,” she said, scratching her head.

“I think all we have are Daikon sprouts. They’re prettyspicy and go well in salads.”

Both employees were approachable, knowledge-able and friendly. Both offered good information andI will mostly likely return to the store in the future.

NEW ENGLAND REPORTStore 1 - Better Deal Than Organics

It was a busy Sunday at this large supermarketknown for its organic, natural and local offerings. Inthe middle of the produce section, I found two staffmembers stocking items. Referring to my recipe forShrimp and Avocado Salad with Grapefruit Vinai-grette, I approached the two employees asking, “Ihave to make this salad for a party, but I don’t likegrapefruit,” I said. “Is there something else I can use?”

One of the men walked me to a display of citrus.“Well, our grapefruits are really sweet. You might likethem,” he said. I wrinkled my nose. “How about CaraCara oranges?” he suggested. “They’re pink inside, sothey look like grapefruit.”

“That might work,” I said. I picked out two CaraCaras, which later rung up as Navels, and a Navelorange to stand in for white grapefruit.

I returned a minute later. “Do you have any bagsof spinach that are smaller than this?” I asked him,holding up a 5-ounce bag of organic baby spinach.

“No,” he replied. “Nothing smaller, but those overthere are a better deal,” he added, pointing to some6-ounce bags of conventional baby spinach.

“But that’s not organic,” I pointed out. He agreed,

“I showed himthe recipe andasked how many

bunches of greens Ishould buy to get six

cups. He did the mathof converting ounces

to cups and figuredthat two buncheswould do nicely.”

Rea

der

Serv

ice

#10

2

Rea

der

Serv

ice

#79

Page 23: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Rea

der

Serv

ice

#10

maintaining that they are a better deal.Finally, I inquired about Radish sprouts. The store

had some, and I asked the produce employee who Ispoke with earlier what they tasted like. “They’re likeradishes, but milder,” he explained, and he openedthe box so we could smell them. The scent wasn’tmuch of an indication, but I thanked him and addedthem to my cart.

Store 2 - Pleasant Talk About RipenessAt this small supermarket, part of a local upscale

chain, the first thing I saw when I walked through thedoors was a display of ruby and white grapefruits,which was handy since I was shopping for Shrimpand Avocado Salad with Grapefruit Vinaigrette.

“Hi,” I said to a man in a green apron. “I have toget a pink or red grapefruit and a white grapefruit.How can I tell what it looks like inside?”

“These are reddish inside and these are whitishinside,” he said, holding up two. “See, the skin on thisone is darker.”

“So you can tell by the skin?”“Well, I can,” he smiled.“I need some avocados, too, from California,” I

said, holding up my list. It was late December, and thesign said they’re all from Mexico.

“This is all we have,” he said.“What’s the difference?” I asked.“Well, where it’s from.”“Okay. How can I tell which ones are good?”“You need it for tonight?” I nodded. “So you want

it to be ripe? You can tell by feeling them. And thedarker ones are riper than the lighter ones.” Well, he’shalf right, I thought.

“I also need some Radish sprouts.” We walkedover to the sprouts and I spotted them tucked inamong the others, but kept quiet.

“I can’t say I’ve ever heard of those,” he said. Iasked for a substitute. After giving it some thought,he told me that Alfalfa sprouts are popular.

We discussed the pros and cons of fresh limejuice versus bottled and settled on a fresh lime, forbetter flavor and because I only needed a little. Then Iasked where I could find toasted hazelnuts. Wechecked out the display of nuts and dried fruit withno luck. Then he directed me to the baking aisle. Weexchanged a pleasant “thank you” and “you’re wel-come,” and I was on my way.

Store 3 - Lack Of InterestAt this independent supermarket known for its

well-priced, high-quality produce, I quickly spotted ayoung man stocking bananas. “Hi. Can you helpme?” I asked. He nodded, and I held up my recipe forSweet Potatoes, Apples and Braising Greens. “What’sthe difference between kale, chard and collardgreens?” I inquired. He looked confused for amoment and pointed to another man. I began to sus-pect he didn’t speak English.

I showed the second man my list and asked thesame question.

“Over there,” he said, directing me to the kale

and collard greens. “But what are they?” I asked. He shrugged. “Can

anyone else help me?”“Just a minute,” he said, disappearing into the

back. About five minutes later, he came back out.“He’s coming,” he said. I waited a little longer and athird worker arrived to help me.

I asked my question and he lead me to the kaleand collards. “But what do they taste like?” I persisted.

“I don’t know,” he said with a smile. He had alsonever heard of chard, which was displayed just a fewfeet away.

“One more question,” I said. “Have you everheard of these apples?” I held up my list and pointedto Sierra Beauty.

“No,” he replied. “But we have Granny Smith.”Of all the employees I encountered on this assign-

ment, the staff here seemed to have the least knowl-edge and interest in helping customers, but I know I’llbe back, because the produce looked beautiful.

MID-ATLANTIC REPORTStore 1 - Educational Experience

My first stop was at a very large Northeast chainowned by a national company. The store I visited is inthe suburbs of Philadelphia. I went in with very lowexpectations because I have never found the qualityof its produce to be outstanding.

It was a busy, late Sunday morning and the storewas packed with many shoppers stocking up for theafternoon’s football game. Three employees were

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 23

Page 24: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 924

hurriedly re-stocking displays, and as I paused todebate whom I should approach, all three disap-peared into the backroom. After about two minutes,one employee reappeared, briskly walking by me andoffering a barely audible, “Hiya.” I pursued him andproduced the Shrimp and Avocado Salad recipe ask-ing for assistance. My first question was about howmany grapefruits I needed to produce a 1⁄4-cup ofjuice. Without hesitation, he replied one or twoshould do it, depending on how juicy they are, andadvised me to buy two just to be safe. I then askedthe same for the lime juice. He suggested one limewould be sufficient for two teaspoons of juice, andoffered the additional advice of rolling the lime withsoft pressure on a cutting board or microwaving it for10 seconds before cutting it to help extract the juice.

I then asked where the red and white grapefruitswere and noted I needed both for the salad. Heshowed me the red grapefruits and helped me selectone. He told me the store didn’t have any whitegrapefruits. He explained white grapefruits are veryhard to come by these days since everybody wantsthe pink or red and likened it to trying to find a seed-ed watermelon. He took a look at the recipe and sug-gested I use another citrus product, such as a Navelorange, to substitute for the white grapefruit.

I asked about the fresh ginger, noting I didn’tknow what it was. He walked me to the display, askedhow much the recipe called for, selected a root andbroke a small piece off so I could smell it. He then

explained how I could use a cheese grater to grate it.Additionally, he mentioned the piece of ginger wouldonly cost about 10¢ and then asked what else therecipe called for.

He helped me select two ripe California avocadosand explained how to select for ripeness. He thenwalked me to the bagged salad and lettuce displayand showed me the options available in baby spinach.Lastly, I asked about the sprouts and he took me to asmall display, noting that they did not have any

Radish sprouts. Instead, he suggested broccoli as agood substitution, as it is less peppery than some ofthe other sprouts.

Throughout our entire exchange, he was verypleasant and friendly and I had the feeling he enjoyedhelping me. Besides just finding me what I needed, heeducated me about the products, especially how toselect and use them. As I thanked him for his help heoffered, “For a small fee, I’ll come to your house andcook it,” and laughed. I left the department with ajovial feeling and a new impression of the store. Per-haps I’ll give them the benefit of the doubt in myfuture shopping trips.

Store 2 - Professional OrientationMy second stop was to a very upscale indepen-

dent store in a highly affluent neighborhood. Many ofits patrons are private chefs or foodies. I visited on aweekday morning when the store was quiet.

When I entered the beautifully stocked producedepartment, I didn’t see anyone on the floor. I walkedaround for five minutes browsing the aisles and stilldidn’t see anyone, so I went in search of an employee.In the next aisle over, I found a younger gentlemanworking with fresh juices and asked him where I couldget some help. He replied he could help and walkedwith me back to the produce department.

I produced the Sweet Potatoes, Apples and Brais-ing Greens recipe and asked for the apple varietieslisted. He correctly pointed out the Granny Smith

“Throughout ourentire exchange,

the employee wasvery pleasant andfriendly and I had

the feeling he enjoyedhelping me. Besides

just finding me what I needed, he educated

me about the products.”

Rea

der

Serv

ice

#51

Rea

der

Serv

ice

#77

Page 25: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

apples, but didn’t know what the Sierra Beauty varietywas and asked me to wait while he went to check. Afew minutes later, he returned and told me he didn’thave any Sierras. When I asked what I could substi-tute for it, he asked me to wait again and left to con-sult the unknown source.

He returned with the produce manager who thentook over. He explained he didn’t have the Sierra vari-ety and unfortunately, he didn’t know much about itstaste profile. He mentioned remembering seeing it inhis nursery book and promised he’d make some callsand find out for the next time. When I told him notto worry about it, he explained how he expected oth-ers to come in with the same or similar recipe and hewould need to be more prepared. I asked him whatsuggestion he had for the recipe. We seemed at animpasse until I offered the thought of maybe using acontrasting flavor, then he recommended the Gala orHoney Crisp.

I asked him about the different sweet potatoes,noting they had a display of yams, as well as a displayof yellow sweet potatoes. He looked at the recipe andsuggested I use the yams, saying they are most com-monly thought of as sweet potatoes. I asked aboutthe greens and he walked me to a display of kale,Swiss chard and collards. When I asked, he explainedthe difference. I said I’d probably take the chard sinceI liked sweeter things, but he suggested using the kaleto offset the sweetness of the apples and sweet pota-toes. When I agreed, he handed me a bunch. When Ibalked at the amount, he explained how I shouldstore it and mentioned I could use it for up to a weekif stored well.

Lastly, I asked about the parsley and mentionedbeing confused about seeing different types of herbsthat looked like parsley. He explained the differencein taste and texture between the curly parsley andItalian parsley and even mentioned how cilantro isactually a type of parsley. He recommended usingthe Italian parsley for this recipe and selected a nicebunch for me. Again, I balked at the amount andagain he explained how to properly store it for useup to a week. I thanked him and he nodded his headand disappeared.

My overall feeling of the visit was more that ofhaving conferred with another industry member,someone talking very matter-of-factly about theitems. Perhaps its experience with its chef clientelelends them toward having a more profession-orient-ed service.

Store 3 - Awkward SilenceMy last stop was to a small local chain priding

itself on freshness and quality. I went late afternoonon a weekday. After walking through the department,I spied someone re-stocking the bagged lettuce andapproached, armed with the Shrimp and AvocadoSalad recipe.

My first question was if he could help me figureout how many fresh limes I needed for two tea-spoons of lime juice. He recommended I buy thesqueeze bottle of lime juice instead and walked me tothe display. When I proceeded to ask about the

grapefruit juice, he said the manager could probablyhelp me better and pointed out another man stock-ing on the wet rack. I was left on my own toapproach the manager as the gentleman hurriedback to the bagged salad section.

I explained about the recipe to the manager andasked him how many fresh grapefruits would make 1⁄4cup. He looked a bit startled and walked with meover to the grapefruits. After a few moments of pauseand staring at the grapefruits, he suggested I buy six. Iasked him about the white grapefruit and he repliedthey didn’t have any without any further explanation.I asked about what he thought I could use as a substi-tute and he shrugged his shoulders and said he didn’t

really know. The manager looked so uncomfortable that I felt

the overwhelming urge to just get out of there andforget about it. I held my breath and asked about theginger. He walked with me to the ginger display. I toldhim I needed 1⁄4 teaspoon and he pulled out a hugeginger root and put it on the scale. He broke abouthalf of it off and then continued to fiddle with it onthe scale, in what seemed like and effort to buy him-self some time to think. Finally, he handed me a hugepiece, and said it was what I needed.

I then asked him about the sprouts and he tookme back to the bagged lettuce and pointed out beansprouts. He said they didn’t have any of the sprouts I

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 25

Rea

der

Serv

ice

#65

Page 26: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 926

was looking for and apologized. At that point, helooked at my cart and said he thought the ginger wasmore than I needed and took the piece out again. Hewalked back over to the ginger display and took amuch smaller piece and handed it to me.

I then asked him about the California avocadosand he led me to the display. He picked up a Floridaavocado and told me the California ones weren’t ripeand the Florida ones would be better for me to use.He selected two and handed them to me.

Overall, the conversation was very uncomfort-able, and although he was friendly, I felt pity for themanager who seemed startled and unprepared forthe questions. While he answered most of the ques-tions — sometimes in excessive quantity — his obvi-ous lack of experience and familiarity in interactingwith customers resulted in a painful silence surround-ing each and every question. If I would have beenshopping on my own, I would have given up and leftthe department after the first question.

MID-WEST REPORTStore 1 - Clueless About Greens

It was three days before Christmas when I strolledinto one of the five large chain stores in a large met-ropolitan area. This particular store is arguably thecity’s largest and most upscale supermarket. Not sur-prisingly, I was greeted by an impressive producedepartment. Immediately, I began scanning the areato see if anyone was actively tending to it. I soon

noticed a man wearing managerial attire whoappeared to be taking inventory.

Doing my best to appear like any other harriedholiday shopper, I began filling a cart with my usualweekly produce buys before making my move.Pulling out a recipe for Sweet Potatoes, Apples andBraising Greens, I casually meandered past the pro-duce manager. “Oh! Can I ask you a question?” Iblurted out. “This recipe calls for Sierra Beauty orGranny Smith apples. I see the Granny Smiths overthere, but do you have any Sierra Beauty?” He doesnot, he politely tells me. “Do you know what theyare?” I continued, screwing up my face in a perplexedlook. “I’ve never even heard of them.” Shaking hishead, he conceded that he didn’t know either. Ithanked him and began making my way to the dis-play of Granny Smiths. Apparently seeking to bemore helpful, he called out to me, informing me thatGranny Smiths are a tart apple.

After I carefully selected the three medium apples,four medium sweet potatoes and fresh parsley calledfor by the recipe, I decided it was time to ask aboutbraising greens. This time, I posed my question to ayoung man busily stocking a nearby display of car-rots. According to the recipe, I can use collard greens,kale or chard, I explained. “What’s the differencebetween the three?” I asked. “Do they taste different?”He quickly confessed that he had no idea, but offeredto ask his manager. Disappearing into the back, heemerged a couple minutes later, only to report that

his manager didn’t know anything about them either.Much like his superior, the stock boy made the effortto be more helpful, however, telling me the greens Iam seeking are also available pre-washed and baggedin the organic section.

Store 2 - Spanish Only HereJust after New Year’s, I headed to my next destina-

tion, a small local chain store known for its extensiveproduce department and large selection of multicul-tural products. Upon entering, I noticed two employ-ees hard at work stocking the store’s produce depart-ment. Once again, I posed as someone shopping foringredients for the same sweet potato recipe. Unfor-tunately, I quickly discovered that a language barrier

Rea

der

Serv

ice

#17

“The conversa-tion was very

uncomfortable, andalthough he was

friendly, I felt pity forthe manager who

seemed startled andunprepared for the

questions.”

Rea

der

Serv

ice

#39

Page 27: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 27

made it extremely difficult to be a clueless shopper atthis particular store. The first man I approached did-n’t seem to understand that I was looking for a kindof apple the store didn’t stock. Hearing the word“apple,” he merely pointed me in the direction of theapple section, which I had already scoured for theelusive Sierra Beauty.

I then approached the second stocker, and askedabout the difference between the three kinds of brais-ing greens. When it became obvious he didn’t under-stand me either, I called over my Spanish-speakinghusband who tagged along for the ride. Given the

opportunity to converse in his native tongue, thestocker politely replied that Swiss chard and collardgreens are equal.

Store 3 - Not Very FruitfulThe next day, I drove to an established, indepen-

dent produce store. This time, I was shopping for adifferent recipe, Shrimp and Avocado Salad withGrapefruit Vinaigrette. The store owner was nowhereto be found, so we made our way to the grapefruitdisplay where a blonde woman was stocking applesnearby. Posing as someone not too familiar with pro-

duce, I loudly pondered what makes white grapefruitdifferent from pink. The pink variety is sweeter, thewoman informed me. While I had her attention, Iasked if we could possibly substitute a different kindof citrus because my mother can’t eat grapefruit dueto certain medications. Specifically, I asked if orangeswould be all right. “Sure,” the woman replied. “I wouldthink so.”

Unfortunately, the latter part of my shoppingexperience was not as fruitful as the first. Coming updry in my search for spinach, I asked for assistancefinding it, only to learn that the store is completely

Page 28: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 928

sold out. Likewise, when all I can find is an empty avo-cado box, I was told those are all gone, too. All in all,the store boasted the most knowledgeable staff, butcame up short in terms of stock.

WESTERN REPORTStore 1 - Mathematically Inclined

This regional chain caters to an upscale andgourmet clientele, and I was hoping that I could findall of the ingredients I needed for my two recipes. Iwandered in as a non-foodie looking for aid, tooknote of the store’s immaculate produce displays andwas immediately approached by a friendly producedepartment employee. I offered him the printout ofthe recipes and he got right to work. He didn’t havethe Sierra Beauty apples I was looking for, but he didhave Granny Smith. To test him, I showed him therecipe and asked how many bunches of greens Ishould buy to get six cups. He did the math of con-verting ounces to cups and figured that two buncheswould do nicely.

I was hoping for a bag of pre-washed braisinggreens, but I couldn’t find one. When I inquired aboutRadish sprouts for my salad, the employee lookedpuzzled, admitting had never heard of them before.To his benefit, he showed me the store’s selection ofsprouts, which included Alfalfa and Broccoli, andoffered to go look in the back for this item.

The hazelnuts I needed weren’t located in hisdepartment, so he found someone else to show mewhere they were. I left satisfied and only slightlyvexed that I had to go elsewhere for the elusiveRadish sprouts.

Store 2 - Honest EscortWhen I visited the second store, a national chain

of high-end grocery stores, I anticipated findingeverything I needed. The produce department boastsa huge selection, with beautiful artsy displays, but itcan be a bit overwhelming. An employee asked meright away if I needed help. The produce assistantwalked me all around the department, helping mefind everything I needed. I really put him through thepaces, but he had solid product knowledge.

The employee showed me hazelnuts in a 6-ounceclamshell and he also suggested that I could buy aspecific quantity in the bulk aisle. I also told him Iwanted to buy just two ounces of baby spinach.Upon hearing my request, he escorted me to the bulkbaby greens section and went so far as to weigh mygreens for me. This was the only store that had anytype of Radish sprout, and they actually had two:Spicy and Daikon. When I inquired as to which wouldserve my recipe better, he said he hadn’t tasted them,so he couldn’t give me any guidance.

I walked out pleased that I was able to procure allthat I needed and had a pleasant shopping experi-ence overall.

Store 3 - Anguished LanguageThe third, family-owned test store was pretty

much in line with my expectations that it would havethe standard ingredients I needed such as ginger,

limes and spinach. The store caters to Middle-Easternand Eastern European communities and offers someexotic items. However, the majority of the producedepartment looked picked over, and many of thefruits and vegetables seemed dirty. To be fair, it wasearly in the day and employees were in the middle ofrestocking the shelves.

While there was someone there to assist me, I hadto ask for help. However, the employee didn’t seemto speak English that well, and we had trouble com-municating. When I asked for Radish sprouts, heshowed me every radish in the store, but he didn’tseem to understand that people eat Radish sprouts.After our trip around the produce department, I gotthe feeling that he was overwhelmed and just wished Iwould leave. I detected a note of anguish in the man’seyes, but I persisted with a request for hazelnuts. Heimmediately said no, the store did not carry them,but I think the problem was actually that he didn’tknow what they were, despite the fact that the entirefront of the store was stacked with European hazelnutchocolates and cakes.

I managed to find the hazelnuts and the rest ofthe ingredients myself. While I left a bit frustratedwith the language barrier, I was pleased with theprices and exotic offerings. I just wouldn’t go backexpecting a great deal of assistance.

NORTHWEST REPORTStore 1 - Friendly Advocate

On a Saturday morning, I wheeled my cart intothe department of a large, remodeled store in a busy,suburban location. I was delighted to see a middle-aged woman working the displays and figured shewould be a great person to answer my questions. Shetoured me all over the department to find what Ineeded and chatted about the recipes for the holidayseason. She suggested I think about using bulk, fresh,loose braising greens when I expressed concernabout a bunch of colored kale priced at $3.99. Thatwas a great substitution referral.

While she was very comfortable with the cookingcharacteristics of apple varieties, her best guess on thejuice yield of a large lime was a tablespoon, and heropinion was that sweet potatoes and yams have thesame flavor and are interchangeable in any cookingmethod. This staffer was patient with amateur ques-tions, willing to be drawn away from her assigned taskand was a friendly advocate for the store.

Store 2 - Ten-Minute ConversationThis Northwest chain operates large conventional

grocery stores and is known for its value pricing andlarge selection. Walking into the store, the layout, pre-sentation and lighting made it appear quite upscale. Ishopped this store midafternoon on the Sundaybefore New Year’s. It was busy with shoppers, but abit light on availability of help in the produce depart-ment. I wandered around the large, clean departmentlooking lost and unsure.

Finally, I spotted a man wearing an apron, but alsoa winter jacket coming through the swinging doorsfrom the prep room. When I called out to him, heR

ead

erSe

rvic

e#8

9

Page 29: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 1

Page 30: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 930

came right over and asked if he could help. I told himI had been assigned a couple of recipes for a party,but I wasn’t much of a cook and needed help. He saidhe had to leave, but to wait a moment there and hewould find someone to help me. In less than aminute, he was back with the produce manager forthe shift. He thanked me for my patience and left.

The produce manager was very helpful and knewevery product in the department, but not muchabout its preparation. He was also stumped by thelime juice question, but came in at the other end ofthe range, predicting 1⁄2 cup of juice per lime. He alsocouldn’t help with the hazelnuts, since this storestocks them in the baking aisle.

He was very helpful with one product. When Iasked him how much fresh ginger to buy to get a 1⁄4teaspoon, he laughed and said, “Not very much, asmall knob will do it easily, but there are many otheruses for fresh ginger, and it’s easy to store in yourfreezer.” He gave me several other ways to use freshginger so I put a good-sized piece in my basket. Heeasily spent 10 minutes with me, making sure I couldfind everything else I needed.

Store 3 - “A” For EffortOn a Tuesday afternoon, I arrived at a smaller,

upscale store in a popular urban/suburban neighbor-hood with a reputation for great service and an eclec-tic product mix. I was pretty sure it would be impossi-ble to stump them, and was concerned that ourrecipes would be too simple to fully test them.

When I walked in, I noticed three associates work-ing on the floor of a fairly small department. I headedover to the youngest-looking team member, showedhim my recipes and started asking questions. Justabout 20 years old, this employee worked very hardto get my answers, even if he didn’t know muchabout food or cooking beyond the ability to locateeverything on my list.

The salad called for trimmed sprouts, preferablyRadish. He lead me to the sprout section and said, “Iknow we’ve had them before, but I’m not seeing themtoday,” as he pulled out and checked every package,finally pointing out the row of Daikon sprouts. I askedhim if he’d ever tried them and what they tasted like?He responded, “I think they are kind of bitter,” thencut me a slice.

He was just as responsive and helpful whenanswering my questions about removing the skinsfrom hazelnuts. He escorted me to the bulk sectionand found the nuts. “I don’t know how to get theskins off, but I’ll find someone who does,” he said. Hecame back twice to make sure I was still therebecause he was having trouble getting the answer.Finally, another customer in the area spoke up andexplained how he did it. We both peppered the manwith questions until the produce staffer was sure heunderstood, and then told the customer, “We shouldhire you!”

In every case, the produce staffers I spoke withwere generous with their time, clearly enjoyed inter-acting with customers and tried hard to satisfy myneeds for information. pb

Page 31: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 4

Page 32: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 932

Across the sector, business owners and man-agers are seeing softer pricing, increases in thesales of lower-cost staples, reductions in volumeorders and slower payment by account holders. Butthe net effects of those situations are being partiallyoffset by increased efforts to wring more value outof operations.

One company making a concerted effort to

extend value to its customers is Los Angeles, CA-based Coast Produce Co., which created the FarmerSelect program to offer its customers a way to con-nect with the end user. Marketing manager, EmilyFragoso, explains the year-round program tries tofeature a new item and highlight its shipper eachmonth. “While we are a wholesale distributor, weare also experts in procurement, merchandisingand marketing. We always think of the end user.With Farmer Select, it’s important to show the field-to-fork transition and create a more personal rela-tionship with our food, especially now, as peopleare going out to eat less and dwelling more.”

Ted Kulpik, sales manager for Coast to Coast

While the U.S. economy struggles throughthe current economic challenges, it is appar-ent to some in the wholesale sector thatbusiness as usual will not necessarily equalbusiness survival.

Wholesalers Find Ways To Make It WorkWholesalers survive in an uncertain economy by tightening their reigns, changing their product offerings, increasing marketing tactics and continuing to put customers first.

B Y D U A N E C R A I G

Coast Produce Co.’s Farmer Select programincludes vivid marketing material.

Page 33: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 76Reader Service # 76

800-223-8080 • 718-991-5900www.darrigony.com

Page 34: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 934

good deal on zucchini, they will just use thatfor a week. When white potatoes are cheapand red potatoes are expensive, they willput mashed potatoes or roasted potatoes onthe menu instead.”

“People are worried about theirincomes,” adds Pete Carcione, president ofSouth San Francisco, CA-based Carcione’sFresh Produce Co. Inc. “One of their familymembers might lose their job, so they arewatching what they are spending and arebuying their produce to bring home and

Rea

der

Serv

ice

#71

“Now is our chance

to really fine-tune

our distribution and

customer service

practices and find

the real value.”

—Shane TowneIndianapolis Fruit Co. Inc.

Rea

der

Serv

ice

#60

Produce LLC, in Cheshire, CT, says as pricesmove to higher points, holding market highsfor extended periods is becoming more diffi-cult.

Marketing and new business develop-ment manager for Indianapolis, IN-basedIndianapolis Fruit Co. Inc., Shane Towne, isseeing more staples going out the door. Aspart of its effort to help customers find newopportunities in challenging times, his com-pany published a paper outlining six stepsthey can take to position themselves com-petitively and grow their businesses. Thatincludes sticking to the basics by focusingon key staples offered in bulk and featuringthem on a rotating basis. Towne names pota-toes, apples, onions and even greens for sal-ads as some of those key staples.

“They are generally going more to thebasics like potatoes and carrots,” agreesSteven Piazza, president of Community-Suf-folk Inc., headquartered in Everett, MA. “Ithink the low-volume, high-priced items aregoing to have to start playing second fiddleto items that you can buy, such as a poundof carrots and a pound of potatoes, and feeda family. A lot of the restaurants are actuallyshopping the markets first to see what itemsthey can put on a plate to provide value andkeep their entrée cost down. Instead ofalways having asparagus, if they can get a

Rea

der

Serv

ice

#55

Page 35: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

cook, rather than eating out.”Ron Carkoski, president and CEO of Four

Seasons Produce Inc., in Ephrata, PA, sayshe is seeing demand for lower cost itemsbeing based more upon commodity sizesand package sizes. His company sells on a 3-tier program that ranges from premiumquality product, regardless of label, throughto value product. He says he has noticedsome customers who used to buy upper-tieritems who are now opting for lower-tieritems. “It is definitely a demand that resultsin lower costs,” he reveals. “We have thingslike 88-size bagged navels that we do onSunkist’s behalf here, going to 113s, and 14-count broccoli going to 18-count. They arestill looking for the quality that is perceivedthrough high color, labels, and things likethat, yet they are also looking for the oppor-tunity to reduce retail cost through sizing.”

John Vena, president of Philadelphia, PA-based John Vena Inc., sees a shift towardlower volumes of some things in his line, ashis customers make up for lower sales, espe-cially in foodservice. Still, he says the itemshe handles have baseline demands so hiscustomers always require some.

Also seeing a change in volume is ChrisGrizzaffe, sales/buying manager for Pro-duce Exchange of Atlanta Inc., based in For-est Park, GA. “They used to come in andbuy the whole pallet, but now they are justcoming in and buying exactly what theyneed,” he admits. “They are not buyingexcess, they are not buying bulk and theyare buying day by day.”

Brendan Comito, chief operations officerfor Norwalk, IA-based Capital City Fruit Co.

Inc. hasn’t seen any major shift in packsizes, but he senses some angst within themarket. “I think a lot of people are just try-ing to find out what the right formula is tomake sales at this time,” he says. “Every-body is struggling with the fact that the con-sumer is just not spending. The good newsis that they have to eat and produce pro-vides more nutrition per calorie than mostfoods do, so people are still being drawn tothis commodity.”

Beyond the produce itself there are thosewho credit the system under which the pro-duce is traded as a source of some comfort

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 35

in trying times. Matthew D’Arrigo, vice pres-ident for the Bronx, NY-based D’Arrigo Bros.Co. of NY Inc., believes, “The supply anddemand model that we all operate under isextremely resilient and natural, so in theend, when things rebound, we will still see avery viable wholesale sector.”

CREDIT CRUNCHWhile the credit crunch has had nearly

catastrophic affects on other sectors of theeconomy, the wholesale produce trade hasalso been affected. “We are seeing anincrease in days outstanding,” discloses

Indianapolis Fruit Company publishedthis document in an effort to help itscustomers find new opportunities inchallenging times.

Rea

der

Serv

ice

#99

Page 36: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Rea

der

Serv

ice

#62

Rea

der

Serv

ice

#20

Amplifying Valuechanges. We just figured out every way thatwe could to cut costs and make things asefficient as possible. There were just a lot oflittle things that we did, but they all add up.”

Carkoski notes the importance of flexibil-ity and preparation. “I know something forsure, and that is that our business model ischanging and if we hadn’t had the vision tobe prepared to make it, and be ready forthat, we would be playing catch-up rightnow,” he says.

“That is something for everybody to lookat right now, the difference between whole-saler and distributor and what it trulymeans, and what it requires you to be ableto do in terms of adding value to the supplychain and be the business solution for con-sumers,” continues Carcione. “That is a cru-cial part that has to be examined movingforward. You can try to be all things to allpeople, like we tried to do here in the dis-tant past, but you soon learn you will fail.Rather, we focus on what we do well andwhat can we do better for our customers.That is our winning formula.” pb

Through it all, wholesalers are watch-ing their business practices closelyand adjusting as the times dictate.

“Our gross profit margin as a percent hasdropped over the past year, simply becausethe prices have gone up significantly,”reveals Ron Carkoski, president and CEO ofFour Seasons Produce Inc., based in Ephrata,PA. “We have experienced at least a $2 percase increase in costs over the past year.The margin that we are able to get on thatas a percent has decreased. Our dollars areabout the same. We haven’t added fees,since we have decided that it’s not some-thing we want to do, but we are definitelypassing costs along, while also making surewe keep things transparent.”

Everett, MA-based Community-SuffolkInc. is doing something different as well.President Steven Piazza explains, “We areactually staggering our help a little bit so wecan extend our hours without increasingcosts. That’s just so we can continue beingbetter buyers and sellers, while providingthe value that the restaurants and other cus-

tomers are looking for.”Emily Fragoso, marketing manager for

Coast Produce Co. Inc., located in Los Ange-les, CA, points out that diversification is key.“We are paying attention to diversifying thebusinesses that we service to make sure wedon’t have all of our eggs in one basket,”she declares. “How we do that may meanbeing in contact with our customers, andmaking sure that we are providing great ser-vice to them, but it could also be thinkingfrom the point of view of our 5-year plan.We ask questions like, ‘What can we do dif-ferently?’ and ‘What new areas of businesscan bring new areas of revenue?’“

“We have been doing really well sinceabout mid-September,” admits BrendanComito, chief operations officer for CapitalCity Fruit Co. Inc. “Some of that may bebecause we kind of saw this coming monthsago and really tightened our belts and didsome things to prepare starting last year. Ithink that part of the reason we are sittingreally well is because we didn’t wait until itwas right in our face to make some

P R O D U C E B U S I N E S S • M A R C H 2 0 0 936

Page 37: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 37

Carkoski. “It is especially apparent rightnow in the foodservice sector. Also, therearen’t the efficiencies of delivery there havebeen in the past. Because some of the busi-nesses are down, we are going with fewercases to those customers and that reducesthe efficiency of the delivery and creates ahigher cost for that delivery.”

“We just have to say no,” agrees Griz-zaffe, admitting that he is experiencingmore people asking for extended creditterms. “We understand their business isslow, but we have bills, too.”

Community-Suffolk’s Piazza sees bothsides of the coin. “The credit problems havenot bothered us, but I wouldn’t want to bestarting out in the produce business right

now,” he asserts. “Transportation costs havecome down somewhat, but the biggestchange that we are seeing is the extensionof time on credit. The economy is taking alot of cash out of the system. We try to abideby the produce industry rules and get all ofour bills within 25 to 28 days. Fortunatelyfor us, we have been around 70 years andwe have great relationships with our banks.”

“When I wrap up 2008, I am going to beable to say that overall, it really wasn’t a badyear, but it ended badly,” admits JohnVena’s Vena. “Sales in November andDecember were really off, partly because ofthe way the holidays fell. I think that it real-ly has to do with a slowdown in the indus-try. We are particularly concerned aboutrestaurants. Many of the customers in therestaurant business depend on cash flow, soit’s a question of how long they can go ifpeople stay home. We saw a couple close inDecember and we have heard more willclose. We are watching very closely in thefood service business, and we feel we mayneed to tighten our credit terms a little bitwith these customers.”

Coast to Coast’s Kulpik says his long-term customer base has stayed current, butin the industry overall, he says there is “def-initely a concern.”

Carcione of Carcione’s Fresh Produceadds that he has seen some credit issues,but when compared to the 70s, he says it’snothing like that, when people would justrun out.

STAY ING AL IVEAs with any business, those in the

wholesale produce sector that aren’t posi-tioned well for challenging economic times

“Many of the

consumers in the

restaurant business

depend on cash flow,

so it’s a question of

how long they

can go if people

stay home.”

— John VenaJohn Vena Inc.

may not make it. “I don’t know what thelong-term consequences will be, but certain-ly the industry is not immune,” revealsVena. “But because of the business we arein, and where we are located, I feel like wehave an opportunity to make the best of it. Ithink that having grown up in this industry,one of the philosophies that was passeddown from generation to generation is thatduring tough economic times, in a terminalmarket, you can always make a living, and Ibelieve that.”

“I think that if you don’t change with thetimes and the conditions of the times we are

Rea

der

Serv

ice

#14

Page 38: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 938

experiencing right now, you could be inserious trouble,” adds Piazza.

Carkoski, of Four Seasons, worries aboutthe effects of the economy on food-safety.“As you start addressing the issues of theindustry and the systems that have to beput into place to assure customers and sup-pliers that you are working in a food-safeenvironment, I can’t help but think thatthere will be wholesalers that will end upmaking the decision not to do any of that,”he states. “Not because they don’t believe init, but because the profitability of their busi-ness doesn’t allow that, so they will make adecision to sell or take their business in adifferent direction.”

“I’d say that these times separate thegood from the excellent distribution andwholesale companies, but it also raises a redflag for those wholesale and distributioncompanies that can’t change,” adds Indi-anapolis Fruit’s Towne’s, who believes thespiraling economy will act as a type of nat-ural selection. “If you are not striving to bebetter than your competition, and you arenot staying two to three steps ahead, you arenot going to be around long anyway.”

F INDING THE OPPORTUNIT IES

People often say that some will findopportunities regardless of the economic

Rea

der

Serv

ice

#13

Rea

der

Serv

ice

#84

Page 39: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

picture. For those in the wholesale producebusiness, those opportunities have mostrecently come in the form of refining busi-ness practices.

“Our opportunities have been in ourmarketing strategies and looking at differ-ent ways of improving that,” says Coast Pro-duce’s Fragoso. “Right now, there is a needfor reconnection. Consumers really want tofind places where they can embrace theircommunities. Our Farmers Select programanswers those kinds of needs, and our POSmaterial stresses the fact that these prod-ucts are going from one family to another.”

For Kulpik of Coast to Coast, new oppor-tunities continue to develop, but one inparticular is adding value simply by beingthere at the right time. “It seems as if a lotof retailers today are even more consciousof their inventory, so being a local distribu-tor allows us the opportunity to make dailydeliveries to chain stores,” he says.

Towne views the current economic situ-ation as a chance to perfect his operation.“Now is our chance to really fine-tune ourdistribution and customer service practicesand find the real value,” he expresses. Oneof the things his company is offering to itscustomers is passive or active demos inorder to help boost impulse sales, whichtend to wane under negative economic con-ditions. He is also seeing a lot of his retailcustomers refocusing their efforts in theareas of customer service, and offering vari-ety that is backed up by a “perfect mix ofvolume, bulk opportunities and specials.”

For others, the opportunities are tied tothe market segments they serve and thesizes of those segments. “The little guy canbuy from the wholesalers, and we can

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 39

Rea

der

Serv

ice

#61

“The good news is

that they do have to

eat and produce pro-

vides more nutrition

per calorie than

most foods do, so

people are still being

drawn to produce.”

— Brendan ComitoCapital City Fruit Co. Inc.

make a fair profit on it and mark it up nicelyand still compete with the big guy,” explainsCarcione. “That’s why all the little guys dowell. Being able to buy on the wholesaleproduce market is also a real plus. The buy-ers today are skilled, and they walk the mar-ket and they can see what they are buyingand they can taste it before they buy it.”

Community-Suffolk’s Piazza agrees thatthe markets are advantageous. “There are alot of good, experienced, independent gro-cers here that are used to buying from the

market, and I think that in times like this,they are more flexible than the chains andthey will react to the situation better.” hestates. “That, in turn, provides opportunitiesfor them, which then provides opportunitiesfor us. These stores have local expertise thatthe management of the chains doesn’tunderstand. If you have three or four stores,you probably have managers that have beenin those stores for awhile. You and your chil-dren have worked in those stores for sometime, so you know what people want.” pb

Page 40: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 940

In the face of the economic downturnand fluctuating gas prices, manychanges are taking place in the trans-portation industry.

The good news is that there appears to be moretruck drivers available to work. The bad news,though, is that there may be fewer trucks for thesedrivers to operate since so many trucking compa-nies have gone out of business in the past year.Also, there may not be as much freight to haul asthere once was, since consumers — some industryexperts are saying — are buying less produce.

According to Charlie Dominguez, vice presidentof Latin American sales for the Crowley AmericanTransport Inc., based in Doral, FL, “A year ago,there was a shortage of drivers, so you had toscramble to cover your deliveries — especially per-ishables — and you had to pay somewhat of a pre-mium. Today, we have ample availability of drivers,but that may change again once the economywakes up.”

In terms of actual produce sales, Dominguez,along with other produce industry experts, saysales are relatively stable. At the same time,though, very few people believe produce is com-

pletely recession proof. Paul Kazan, president of the Bronx, NY-based

Target Interstate Systems Inc., notices the declinein business but tries to look on the bright side. “Peo-ple still have to eat, so the produce industry is notnecessarily as devastated as other industries, butthere’s less volume than there was before. Manyproduce purchases are impulse buys,” he adds.“People may have lettuce, tomatoes and celery asstaples, but they might think twice about anythingelse they put in their salad bowl.”

Target Interstate Systems, which runs about a50-50 split between regular freight and produce, hasexperienced a decrease in overall business. “Regu-lar freight dropped off this January from last Janu-ary by 25 percent. Produce dropped by about 17 to20 percent,” Kazan reveals.

ECONOMIC EFFECTSIn terms of the slowdown in the trucking indus-

try, the major problems began when fuel pricesstarted skyrocketing so fast that the trucking com-panies couldn’t keep up with the price increases.Kenny Lund, vice president of operations at AllenLund Co., headquartered in La Cañada, CA,explains the dilemma. “Some fuel surcharges wereset every week or every month, so some compa-nies couldn’t keep up with how fast fuel priceswere rising.” Now that fuel prices are dropping,that’s good news for the industry, overall. Nonethe-less, the fact remains that consumers are buyingless because of the economic downturn.

Robert Goldstein, owner and president of Gen-pro Inc., based in Rutherford, NJ, began preparingfor a troubled economy when the cost of gas startedto rise. “When gas was becoming more expensive,we started to plan ahead. The unfortunate thing isthat margins and profits are affected, but operatingcosts remain the same, or if anything, increase.”

Another problem is that trucking companies arebecoming more selective about which loads they’llrun. “Rates are off in the trucking industry, so moretrucks are laying up for more days than they have

Transportation Logistics Face ChallengesAs the economy takes its toll, the trucking industry finds ways to remain relevant.

B Y L I S A L I E B E R M A N

The slowdown in the trucking industry began with rising fuel rates.

Page 41: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 12

Page 42: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

United FreshTakes On A

New Challenge

No one has ever doubted the stead-fast commitment of Washington,DC-based United Fresh Produce

Association in its effort to facilitate thegrowth and development of the produceindustry. The organization has recentlytaken one step further with the creation ofits latest project, the Supply Chain Logis-tics and Technology Program. The pro-gram, which will be lead by Dan Vache,aims to “deliver education, hands-on toolsand direct services to assist companiesthroughout the fresh produce supply chainin meeting challenges in transportation,cold chain management, informationtechnologies, traceability, facilities man-agement, energy efficiency, packing andpackaging needs,” according to UnitedFresh’s recent press release.

Vache, who brings more than 30 yearsof experience in the industry, will bejoined by a panel of experts from all areasof the industry, and maintains that Unit-ed’s new program will touch everything,from beginning to end. “We want toaddress priorities, issues and processes forimproving the industry, all the whilesqueezing the most dollars we can out ofthe supply chain, because in the end, allof those saved dollars will improve thebottom line.”

The program will provide a forum forexperts to come together and have openlines of communication, enhancing theefficiency of product distribution and find-ing effective solutions to industry-wideproblems. For example, one of today’s hotbutton issues is climate change. “As anindustry, we are aware that we need toreduce our greenhouse gases and fuelemissions,” declares Vache. “There areemissions from cooling and storage facili-ties, as well as transportation and redistri-bution centers. This is why the council isso great. It provides a venue for the indus-try to come together to find solutions.” pb

P R O D U C E B U S I N E S S • M A R C H 2 0 0 842

in the past,” Kazan states.Ralph Massey, vice president of new

market opportunities at Trinity TransportInc., located in Seaford, DE, says his compa-ny sometimes has to scramble to find trucksto deliver its produce. “There are just fewertrucks available right now,” he says, “and thetrucks that are there are demanding moremoney to run the same lanes as they didbefore.”

Part of the problem is that with lessfreight to deliver overall — both produceand regular freight — trucking companiesare more reluctant to deliver loads from the

West Coast to the East Coast, unless theyknow that the trucks are going to have areturn load to bring back. For example, Trin-ity used to work with a trucking companyout of Chicago that had 50 trucks that wouldrun anywhere in the country. “Now thecompany is only targeting certain areas fordelivery where it knows it won’t have tohunt for backloads,” Massey declares. “Thatmeans the company will no longer deliverto certain areas they used to.”

Dan Vache, vice president of the newlyformed Supply Chain Logistics and Technol-ogy Program for United Fresh Produce Asso-

ciation, notes a need for cooperationbetween companies that haul perishablegoods and those that don’t. “There’s no rea-son a cold carrier should be heading backempty-handed. Even if you have a refriger-ated unit, it can be turned off. The truth is,trucks are better off hauling furniture than

Rea

der

Serv

ice

#49

Page 43: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

nothing else,” he admits. But he warns,“Rates for trucking perishables are muchhigher than that of dry goods. So freightcompanies might have to lower prices to beable to compete in a competitive market.”

On top of the fact that trucking compa-nies are getting finicky about which routesthey’ll run, another problem is that therearen’t as many trucks to drive as there wasbefore. According to Lund, part of the prob-

lem is that when a number of small truck-ing companies went out of business due torising fuel prices, some ended up sellingtheir trucks. “When the dollar was weak,many trucks were shipped abroad and pur-chased by buyers in Russia and Asia,”explains Lund. “There was just a mass exitof trucking capacity. I’ve never seen any-thing like that before.”

Goldstein notes there has always been ashortage of trucks. “We’ve always been facedwith a transportation crisis. It started withescalating fuel costs and then it was escalat-ing insurance rates and escalating operatingcosts. It all means less trucks on the road.There will always be a gap between what’savailable and what you need.”

Vache agrees. “To some extent, there willalways be carriers. We have been spoiled bythe efficiency of the trucking industry,” hesays. “But now, more frequently than ever,we see equipment laying idle, and newerequipment is slower getting on the roads.Right now, in this economy, how doessomeone get financed to buy a new refriger-ation unit? They are either forced out of thebusiness or forced to use an older unit, andwe don’t want either one of those situations.It’s obviously an economical equation.”

Lund points out another indication ofthe ongoing diminishing supply of trucks isthe fact that the truck manufacturing indus-

try is producing only half the number of theClass 8 trucks. “In a normal year, we need250,000 new Class 8 trucks to replenish theindustry. This year, we’re only producing125,000 trucks,” Lund says. “This is helpinga bit now because we’re not transporting asmuch freight, but when we have more vol-ume of freight, we’re not going to have thecapacity of trucks to turn it around.”

As if that wasn’t enough, by 2010, theU.S. Environmental Protection Agency(EPA) is going to require trucking compa-nies use cleaner running Navistar engines.“This is going to create even more of a

shortage, especially since Caterpillar hasjust announced that the company is haltingproduction of Class 8 engines because ofthese new standards,” Lund expresses.

BUILD ING RELAT IONSHIPSEventually, when the economy starts

picking up, it’s likely that there’s going to bea shortage of trucks and drivers — many ofwhom may have given up on the industryby then because of a lack of work. In orderto prevent too many drivers from leavingthe industry, Lund underscores the impor-tance of building solid relationships with

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 43

“In a normal year,

we need 250,000

new Class 8 trucks to

replenish the indus-

try. This year, we’re

only producing

125,000.”

— Kenny LundAllen Lund Co.

Rea

der

Serv

ice

#5

Page 44: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 944

them right now. “When things are tight likethey are now, that’s the time for companiesto solidify their relationships with driversfor the long-term,” Lund states.

Jesse Peay, operations manager for HighStreet Logistics Inc., headquartered in San

Luis Obispo, CA, is taking steps to ensurehis drivers are still there when the economyimproves. “We try to retain truckers by pay-ing them a fair rate,” he asserts. “We don’twant to gouge them just because prices aregoing down. Our goal is to keep them haul-

ing for us.” Money aside, studies show the reason

most drivers leave the industry is due to themanner in which they’re treated. “I’vealways pushed the idea that you have totreat drivers well,” says Allen Lund Co.’sLund. “It doesn’t make sense to spend allthat time and energy growing, picking,packing and cooling a full load of produceand then put it in the hands of someone youtreat poorly. It’s important to count thesedrivers as an integral part of the process,rather than a necessary evil.”

This is a message that both receivers andsuppliers have begun taking to heart overthe past few years. Shippers are using pack-aging that’s getting easier to load andunload, and receivers are making it easierfor drivers to check in and check out at thedocks. “You have appointments for checkingin and out, and receivers are providingbreak rooms where the drivers can restwhile they’re waiting for the doors to open,”explains Lund.

VALUE -ADDED SERV ICESIn addition to trying to retain drivers by

providing them with better working condi-tions, many transportation companies arealso working hard to provide shipping and

Rea

der

Serv

ice

#24

Rea

der

Serv

ice

#16

Rea

der

Serv

ice

#31

Railways Or Highways?

D an Brooks, produce freight coordina-tor for Wegman’s Food Markets Inc.,a 79-store chain based in Rochester,

NY, admits that in the face of fluctuating gasprices and uncertain supplies of labor in thetrucking industry, Wegman’s is consideringthe possibility of shipping more produce byrail. “We’re looking into doing 5 percent ofour produce by rail,” Brooks reveals. “There’sa lot of opportunity to start utilizing rail. Youcan get a consistently low price that doesn’tfluctuate with fuel increases.”

The disadvantage of rail, however, is thatit usually takes at least one extra day to shipproduce by rail, rather than truck. “Mostshipments coming out of California take sixor seven days, so if you add an extra day,

that can be a lot,” Brooks says. “The otherproblem with rail is that once you send out ashipment, there’s no way you can changethe delivery appointment time once it’sloaded, and it’s also not as easy to changedestination points like you can when you’redelivering product by truck.”

While railways might not be practical forevery kind of perishable out there, UnitedFresh’s Vache does see some benefits tousing the rail system. “Steel on steel is avery fuel efficient method of transport. Whilestrawberries and peaches may not fit in tothis mode of transport, root vegetables, suchas potatoes and onions — where there is alittle more leeway with time —might workvery well.” pb

Page 45: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 54

Page 46: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 946

receiving companies more value-added ser-vices. John Druckenmiller, transportationaccount manager at Lange Logistics Inc., inFranklin, TN, reveals all of his wholesaleand chain store customers are runningtighter inventories and looking to cut costswherever they can. “We’re doing a lot ofscheduling for pickup and delivery appoint-ments, which helps take more off our cus-tomers’ plates, and it’s a way for us to differ-entiate ourselves from the competition. Wemight also do other things, like managingthe financials for the carriers that are get-

ting dispatched. That way, instead of thebuyer having to talk to 15 or 16 differentcompanies, they just talk to us and we’llhandle the entire distribution of the load.”

Lund’s company is also offering morevalue-added services than ever before.“We’re getting more into fourth-party logis-tics, where we work with other brokers onbehalf of shippers and help them do thescheduling, receiving, pricing, claims man-agement and freight payment,” he adds. Forone customer, Lund built a Web site thatallows the customer to track loads, upload

“We try to retain

truckers by paying

them a fair rate. We

don’t want to gouge

them just because

prices are going

down. Our goal is to

keep them hauling

for us.”

— Jesse PeayHigh Street Logistics

invoices and schedule pickup points at dif-ferent loading locations with several differ-ent crews.

Trinity’s Massey says his company hasset up a freight-management service so itscustomers can log onto the computer todetermine which shipping company willoffer the best rate for any given delivery —even if that company isn’t always Trinity.“Sometimes, we’ll have a customer thatneeds to move 1,000 different shipments allover the country, and we’ll tell them thebest way to move it. Hopefully, Trinitymakes it to the top of the list most of thetime. But even if we don’t get the businessfrom the freight, we still come out aheadbecause we get the business for selling themthe packages.”

Transportation companies are also goingthe extra mile when it comes to safety. “Inthe past, it was understood that a broker orshipper didn’t have any liability if there wasan accident,” says Lund. “Now, if you haveknowledge that the guy was an unsafe oper-ator, you’re liable.”

Instead of simply choosing the carrierwith the best price and making sure theyhave cargo insurance, transportation brokersmust also look at truckers’ safety ratings,check their W-9s and verify their locationsand liability insurance. “It’s not just a mat-ter of qualifying these carriers once ayear,” Lund adds. “You have to qualifythem for every load.”

High Street Logistics has an 11-pointsafety check on carriers. “We try to makesure that the carriers we hire are in goodstanding and have good safety recordsand references,” says Peay. “We also con-tact the drivers directly, which is some-thing our customers like about us.” pbR

ead

erSe

rvic

e#

108

Page 47: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 47

“California vegetables are basically the best,”states Allan Sabatier, senior vice president of salesand marketing for Salyer American Fresh FoodsInc., in Monterey, CA. “They have legs. Due togreat soil and climate conditions, California springveggies are so good they practically walk out thedoor.” But that doesn’t stop Sabatier from promotingthem. Salyer works with each of its customers tohelp promote California spring vegetables.

This year, Salyer is working to move its line oforange, purple and green cauliflower items. POSmaterial on each item may include recipes,coupons and nutritional information. Consumersmay find themselves surprised to learn orange cau-liflower, for example, contains 25 times as much vit-amin C as white, and the purple variety is especial-ly high in antioxidants. Green cauliflower is high in

vitamin A and folacin. “We’re also buying printmedia with our customers,” adds Sabatier.

Sam Duda, divisional vice president of the Sali-nas, CA, branch of Duda Farms Fresh Foods Inc.,headquartered in Oviedo, FL, says industry-wideoverall planted acreage of California cauliflower isup six percent from 2008. “Cool weather is benefit-ing crop growth this year.”

Nothing says “spring” like asparagus, and 2009looks to be an especially good year for Californiaasparagus, according to Tom Tjerandsen, head ofdomestic marketing at the California AsparagusCommission (CAC), located in Holtsville, CA.“Mother nature, to date, has been very kind toasparagus. We’re confident that we’re going to haveenough of a high-quality crop to send to customersaround the country.”

Industry-wide acreage of other California com-modities is down. Celery acreage is down 1 percentfrom 2008. “Rain and cool weather in the SalinasValley has slowed maturity of the crop,” reportsDuda. While overall planted acreage of head lettuceis down 10 percent from 2008, “So far the crop isgrowing well.” Lastly, overall crop acreage for broc-coli is down 8 percent, “The cool weather is boost-ing crop growth.”

PROMOTIONAL PROGRAMSTo help move asparagus, “We have an aggressive

program that has been refined by input from grow-ers, shippers and retailers around the country,”notes Tjerandsen. The program includes “sales-proven” POS materials, recipe booklets, handlingbrochures for retail employees and other employee-education tools.

“We have a program designed to help retailersunderstand how to most effectively promote Cali-fornia fresh asparagus,” Tjerandsen explains.“Retailers are learning to give consumers a choicein size of asparagus — thick and thin.” By offeringseveral sizes, which can be utilized in different

California spring vegetables — notablyasparagus, cauliflower, celery and leafygreens — are poised for another great year,and retailers can take advantage of theseitems through effective promotions andother merchandising techniques.

Beef Up California Spring Veggie SalesGet creative with promotional efforts this spring to buildprofits of California’s lineup of outstanding vegetables.

B Y J A C Q U E L I N E R O S S L I E B E R M A N

Page 48: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 948

types of recipes, “They’re generating sub-stantial additional revenue.”

On CAC’s Web site, “We’ve added manymore recipes for consumer and foodserviceuse, and we’ve updated a lot of the growing

and shipping dates,” Tjerandsen says. Retail-ers can expect to see articles about Califor-nia asparagus in consumer newspapers andmagazines. “We are putting a number ofconsumer press releases into circulation,”

he adds.Individual asparagus growers, such as

Mission Produce Inc., headquartered inOxnard, CA, are also helping to promote thecrop. This spring, Mission will offer promo-

Rea

der

Serv

ice

#8

Safer Greens For A Wary Public

In light of recent food scares, consumers may be glad to know Cali-fornia’s leafy greens are among the safest in the world, thanks tothe California Leafy Green Products Handler Marketing Agreement

(LGMA). “The LGMA represents an unprecedented commitment to pro-tect public health,” reports Scott Horsfall, CEO. “It provides mandatoryfood-safety audits by government inspectors of all of its members andtheir growers. These audits take place on a regular and random basisthroughout the year. By working with California’s handlers of leafygreen products to ensure the safest possible food supply, the LGMA isbuilding confidence in California products and offering retailers assur-ance that the leafy greens they sell have been grown according tohigh food-safety standards.”

The LGMA offers a food-safety certification program for leafy greenproducts grown in California, Horsfall explains. “Through mandatorygovernment audits, the program certifies that its members are imple-menting a set of commodity-specific, food-safety practices. By onlypurchasing from LGMA-certified companies, retailers can be confidentthat the leafy green products they sell have been grown according toLGMA-accepted, food-safety practices verified by mandatory govern-ment audits.

“Consumer research validates the approach taken by the leafygreen industry and the LGMA,” he continues. “A national survey con-ducted in 2008 showed that when the program is explained to them,89 percent of consumers said the LGMA program gave them moreconfidence in the safety of leafy green products.”

Retailers can ensure they are buying leafy green products onlyfrom certified members of the LGMA. Horsfall notes several waysretailers can verify whether or not their suppliers are in good standing.

Certified members are suppliers that have been audited by govern-ment inspectors and found in compliance with the program’s food-safety practices. Certified members use the LGMA Service Mark oneach of their bills of landing.

The LGMA Web site maintains a list of currently certified membersat all times. Members in good standing are issued a certificate of com-pliance on a quarterly basis, which they can provide to their cus-tomers upon request.

Retailers can sign up for LGMA Updates. These e-mail alerts areprovided whenever there is a significant change to the LGMA Web sitesuch as a de-certification action taken against a member for non-com-pliance with the mandatory LGMA food-safety practices. pb

Page 49: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

To participate, send us the following:

1. Your name, company, address and phone.

2. Type of business.

3. Names and dates of promotion (must have taken place betweenJune 1, 2008 and June 1, 2009).

4. Promotion objectives.

5. Description of promotion.

6. Promotion results (sales or traffic increases, media attention).What made this program a success?

7. All support materials used in the promotion – such as POP, ads, posters, TV commercials. High-res photos are requested.

Send entries to:

PRODUCE BUSINESS MARKETING EXCELLENCE AWARDS

P.O. Box 810425 • Boca Raton, FL 33481-0425

Deadline for entries is June 5, 2009

For additional information, call: 561-994-1118, Ext. 101

2008 Marketing Excellence Award Winners

• California Giant Berry Farms • Colemans Food Centre • Colorful Harvest, LLC• Columbia Marketing International Corp. and Rainier Fruit Company• Del Monte Fresh Produce, North America, Inc. • Fresh Quest, Inc. • FreshSense, Inc. • Gourmet Trading Company • Idaho Potato Commission• Mann Packing Company, Inc.• New York Apple Association, Inc., and T. Marzetti Company• Ocean Mist Farms • Pear Bureau Northwest • Sage Fruit Company • Stemilt Growers, Inc. • Sunrise Growers, Inc. • Tanimura & Antle, Inc.• The Oppenheimer Group and American Diabetes Association• University of Massachusetts Amherst and the U.S.

Highbush Blueberry Council• Virginia-Carolinas Peanut Promotions

Turn YourMarketing

Into AnAwardingExperience

Turn YourMarketing

Into AnAwardingExperience

Right now, and on through June 5, 2009, we’re takingentries for the 21st Annual Marketing ExcellenceAwards Program, presented by PRODUCE BUSINESS.The awards recognize excellence in marketing in eachof five categories: retailers, restaurants, wholesalers,shippers and commodity organizations. Print, broadcastand other media are eligible to win.

Page 50: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 950

Nichole Towell, Duda’s marketing devel-opment manager, suggests retailers partici-pate in the California Grown campaign,which is part of the Buy California Market-ing Agreement. “Retailers can sign up toreceive the free California Grown Lift Gift,”she notes.

Looking ahead, the quality of promotionswill become more important to consumersthan quantity, she adds. “Consumers arescrutinizing values at retail and overlookingthose items which they do not perceive as

Rea

der

Serv

ice

#29

Rea

der

Serv

ice

#19

Rea

der

Serv

ice

#52

providing enough value for the price. It willbe about quality over quantity of promo-tions. Retail, large store, and club stores areseeing increased sales growth due to thecurrent economic conditions. The con-sumer trade-down behavior means bulk veg-etables are in again, because they may becheaper by the pound than their value-added counterpart. Retailers should effec-tively merchandise items that are on promo-tion in the produce department and high-light available savings.” pb

Spring is prime season for California leafy greens.

tional ad opportunities to its retail customerbase during peak volume periods, as well asdiscount and contract pricing, reports retailsales manager Cruz Carrera.

Although California grows leafy greensyear-round, spring is the prime season. Tan-imura & Antle Inc., based in Salinas, CA,will do most of its promoting during thistime, according to president and CEO RickAntle. In addition to its core products, ice-berg and romaine lettuces and onions, Tan-imura & Antle has a line of “artisan lettuces”that was introduced in spring 2008.

Tanimura & Antle plans to promote itsitems through ads in trade publications anddirect mail to retailers. The company alsoplans to work directly with retailers to reachconsumers. “We find the best promotionsare ones where we work together,” saysAntle. He is hoping to convince retailers tocross-merchandise lettuces with non-pro-duce salad components such as croutonsand dressings.

The best way to move California springlettuces is to give them the attention theyneed, suggests Antle. Ads have becomemore important as the economy is forcingcash-strapped consumers to look for the bestbargains. “You’re hearing more about peopleshopping the ads.”

Page 51: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

MASTERS OF MERCHANDISING

SUPPLEMENT

8th Annual

Sponsored by

Page 52: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Each vendor worked hard to produce a piece of advice for the industry onhow to more effectively merchandise the product category at hand. By sharingknowledge acquired while working with retailers throughout North America,these vendors help retailers move more product, help producers find outlets forproduction and help the world by encouraging a more healthful diet.

Increasing sales of fruits and vegetables is not only a matter of big pro-nouncements, such as the Fruits & Veggies — More Matters! program. Sales ingeneral can increase only if sales of specific items increase. That means knowinghow to build consumer trial and how to offer the most effective assortment; itmeans knowing how to market things on a day-to-day basis and how to do someout-of-the-box things just to keep consumer interest high.

Retailers, please take the time to review this offering carefully. When did youlast think about how to increase sales of celery? Or plantains? Or leafy greens?Here is a chance to think of things in a different way. When did you last reallyconsider how to best sell bananas — was it when you were a produce departmentmanager 10, 20 or 30 years ago? Here is an opportunity to revisit old subjectswith a different perspective.

Every once in a while, the opportunity presents itself to do well while alsodoing good. Such is the case with this, our eigth annual Masters of Merchandis-ing supplement. The industry owes a tip of the hat to the collection of industryleaders who elected to invest with us in a marketing vehicle that is both promo-tional and educational.

TABLE OF CONTENTSCATEGORY SPONSOR PAGE

Light-Skinned Avocado ..............Brooks Tropicals, Inc. ..........................................96

Mangos ..........................................Ciruli Brothers, LLC................................................98

Mushrooms ..................................Monterey Mushrooms, Inc. ..............................100

Onions ............................................Idaho-Eastern OregonOnion Promotion Committee ............................102

Organic Fruit..................................Columbia Marketing International....................104

Organic Vegetables......................Albert’s Organics, Inc. ........................................106

Papayas ........................................Brooks Tropicals, Inc. ........................................108

Pears ..............................................California Pear Advisory Board ........................110

Pineapples ....................................Turbana Corp. ......................................................112

Plantains ........................................Turbana Corp. ......................................................114

Potatoes ........................................U.S. Potato Board ................................................116

Pre-Conditioned Fruit ..................Trinity Fruit Sales Co. ..........................................118

Steam Vegetables ........................Mann Packing Co., Inc. ......................................120

Stone Fruit ....................................FreshSense ..........................................................122

Sweet Onions................................Keystone Fruit Marketing ..................................124

Sweet Potatoes ............................U.S. Sweet Potato Council ................................126

Vegetable Snacks ........................Mann Packing Co., Inc. ......................................128

Back Page ....................................Produce For Better Health Foundation ............130

CATEGORY SPONSOR PAGE

As retailers consolidate, they are in a position toexpect more support from producers, and intellectualcapital is just about the most valuable support one canprovide.

52 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

MASTERS OF MERCHANDISING

SUPPLEMENT

8th Annual

Apples ............................................Domex Superfresh Growers..................................54

Artichokes ....................................Ocean Mist Farms ..................................................56

Asparagus ....................................Peruvian Asparagus Importers Assoc. ..............58

Avocados ......................................California Avocado Commission ..........................60

Bananas ........................................Dole Fresh Fruit Company......................................62

Berries............................................Driscoll Strawberry Associates, Inc. ..................66

Carrots............................................Grimmway Farms ....................................................70

Celery ............................................Duda Farm Fresh Foods, Inc. ................................72

Cherries..........................................Domex Superfresh Growers. ................................74

Chili Peppers ................................Coast Produce Company ......................................76

Citrus ..............................................DNE World Fruit Sales............................................78

Cucumbers ....................................Rosemont Farms......................................................80

Fresh-Cut Meal Solutions ..........Apio, Inc. ..................................................................82

Garlic ..............................................Maurice A. Auerbach, Inc. ....................................84

Grapes............................................Sunlight International Sales..................................86

Herbs ..............................................Herb Thyme Farms, Inc. ........................................88

Hydroponic Butter Lettuce ........Hollandia Produce ..................................................90

Kiwifruit ..........................................Cal Harvest Marketing, Inc. ..................................92

Leafy Greens ................................Walter P. Rawl & Sons, Inc. ..................................94

MASTERS OF MERCHANDISING

Page 53: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

YES, please send me ______ copies of the Masters of Merchandising Supplement Cost: $5 for one copy, $10 for 5 copies. Amount enclosed $____________

Please make checks payable to: PRODUCE BUSINESS

FOR MORE INFORMATION ...... on any advertisers in this special section, please copythis page, circle the number(s) below that correspond(s) tothe advertiser’s reader service number, fill out the form atright and fax the page to 561-994-1610.

READER SERVICE NUMBERS2 3 6 7 9 26 27 28 30

32 33 34 35 36 37 40 41 4244 45 46 47 48 58 59 64 6667 70 73 74 75 82 83 90 96

109

Please print legibly

Name:

Company:

Address:

City:

State/Province: Postal Code:

Country:

Phone: Fax:

■ Amex ■ MasterCard ■ Visa

Credit Card Number:

Signature:

Expiration Date:Fax this form with your credit card information to:

561-994-1610 or mail with your check to:PB Masters of Merchandising

P.O. Box 810425 • Boca Raton, FL 33481

FOR ADVERTISERS ONLY

Yes! I am interested in having my cate-gory represented in next year’s Masters ofMerchandising supplement.

Please send me additional information.

The sponsors of this year’s Masters of Merchandising section are a special breed. Wespoke to many producers who declined to participate, saying they simply had no ideahow to merchandise their own items effectively. When we offered to help them researchthe matter, we encountered all too many vendors who said, “That is the retailer’s problem;we just book loads.”

Merchandising is everyone’s problem, and in the produce industry, “The Times, TheyAre A-Changin’.” As retailers consolidate, they are in a position to expect more supportfrom producers, and intellectual capital is just about the most valuable support one can provide.

So kudos to our Masters of Merchandising sponsors. If you would like additionalcopies of the Masters of Merchandising supplement, please use the order form below. Ifyou are a vendor and would like to see your category included next year, please use thesame form.

There is always a temptation to try to keep knowledge tightly protected and con-trolled, but oftentimes what goes around comes around, and in sharing their knowledge,our sponsors are giving the industry a great gift. May it return to them many times over.

As an added service to our retail readers, we’re printing additional copies of thisguide, so if you would like extra copies of the 2009 Masters of Merchandising supplementto give to your colleagues, please fill out the form below and fax or mail it to us. For thecost of shipping and handling, we’ll send you up to five supplements, so they will beavailable on a first-come basis.

If you require larger quantities for distribution to store-level personnel, please call ouroffices at 561-994-1118 for information on customized reprints. pb

MARCH 2009 l MASTERS OF MERCHANDISING l PRODUCE BUSINESS 53

MASTERS OF MERCHANDISING

Page 54: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSProvide a large assortment of varieties –you just might find the next “hot” apple foryour customers

Promote apples year-round – they trulydrive sales dollars

Create promotions around all Holidays andmajor sporting events

APPLES

Over the past ten years apple consumption hasaveraged 16.8 pounds per capita. In 2006, the yearwith the most recent information, apple consumptionincreased 6.9% from 2005. The anticipation is thatthe official numbers for 2007 will be similar to 2006and that consumption will continue to increase in2008 and 2009. This is due to an interest in newvarieties as well as additional retail promotions. Nowmore than ever, savvy apple merchandising will gen-erate huge year ‘round return on investment.

RECOMMENDED DISPLAY IDEASNothing attracts attention and generates sales

like a large apple display. The display should be wellsigned and placed at the front of the department inyour primary selling location. During the peak of theseason, a secondary display toward the back of thedepartment will generate additional sales.

PACKAGING OPTIONSThere are more options than ever when it comes

to displaying fruit. Clamshells, poly bags, mesh bags,display-ready boxes and high-graphic bins areamong the tools you can use to increase your applecategory performance.

Increase Sales with Bins: Domex SuperfreshGrowers® has developed a high-impact-graphic totebag display that will drive impulse sales and incre-mental sales at the same time. Pair this display withour Flavor Pairings® tote bags and you have the per-fect opportunity to sell apples anywhere in the store.These are especially convenient for doing cross-pro-mos using the suggestions on the tote bags. Thesebins are also handy for creating bulk or bag water-fall apple displays.

Bags: Create a separate section for your bag pro-gram to deliver incremental volume and sales. Overthe last 3 years mesh bags have increased volume byas much as 11% to 16% every year. However, if yourcustomers prefer poly then that is what you shoulddisplay. Our hottest new item is our 2lb SuperfreshKids® bags. These are a great way to take advantageof this year’s apple crop and promote real value toyour customer.

Promotion: Plan promotions with bins and half-bins. Also available is our new Display Ready Case

54 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEASUse Flavor Pairing™ tote bags to cross pro-mote apples across all departments

Build Apple-Rama displays in October andNovember when all varieties become avail-able

Offer samples of new varieties like HoneyCrisp to create excitement for all apples

Use Domex Superfresh Growers high-impact-graphic full and half size bins topromote value-driven 3lb bags and 2lbSuperfresh Kids® bags in high traffic areas

(DRC) that enables you to display in your lobby area.These beautiful displays create consumer excitementand increase impulse sales.

PROMOTIONAL/ADVERTISING IDEASApple-Rama: Almost any combination of apple

varieties can be featured in your full-blown applevariety ads. It is recommended to run a major applead in early November as all varieties of new cropapples are available for promotion.

Gala: Historically the first apples picked everyyear in Washington. Plan your ads to run beforeLabor Day. Announce “new crop” in early ads inorder to create maximum consumer demand acrossall varieties.

Frequency: Starting September 1, it is recom-mended you feature apples at a minimum every twoweeks. Maximum sales result from retailers that run8 ads every quarter.

New Year: After the Holidays as your customersget back to basic foods, this is the ideal time for amajor ad and display push of your “healthy” applecategory.

Holiday-Specific Ads: Christmas, Hanukkah,Valentines Day, and St. Patrick’s Day are the tradi-tional holidays for apples, but don’t forget to includeapples in your ads around major sporting events too.

Timing: Continue to feature apples year-round.In fact, Domex Superfresh Growers Category Man-agement team has conducted research revealing thatstores lose sales and margin when they decreaseshelf space for apples when stone fruit arrives. Theaverage margin loss over a four-month period is

20.5%! Other studies have shown that when youposition apples adjacent to, or just behind, stonefruit the average increase in gross profit is $595 perstore per week. With SmartFresh® treatment, appleskeep their pressure (crispness) so you can now easilyfeature apples into June, July and even August thatdeliver a great eating experience along with greaterprofits.

National Apple Month: Every November isNational Apple Month. This program receivesnation-wide support from USApple and apple ship-pers and can really help kick off the holiday season.

Ad Features: Plan bag ad features in conjunctionwith your loose apple program. Value sizes like 2lbor 3lb bags increase your movement. Contact yourDomex Superfresh Growers account manager formore information.

CROSS-MERCHANDISING OPPORTUNITIESThe Flavor Pairings® tote bag program developed

by Domex Superfresh Growers addresses consumerdesires for new and interesting ways to includeapples in their diet. Each of the variety-specific bagshas a recipe designed to showcase that particularapple’s flavor. The bags also suggest what otherfoods, i.e., meats, cheeses, wines and other produceitems, pair well with that variety. These bags are aneasy way to cross-promote apples with food from theentire store.

DISPLAY CARE AND HANDLINGCulling several times a day along with proper

rotation are critical to building consumer interest inapples. Bruised or scattered apples lower consumerconfidence in the product and they will turn to othersources for good apples.

Temperature: Store cartons under constantrefrigeration at 32°F with relative humidity of 90%.

Carton Protection: Keep apples in cartons withlids closed and away from strong scented foods andheavy moisture.

Handling: Move cartons as little as possible toavoid bruising and skin damage.

Rotate: Insure oldest product is staged to moveto shelf display first.

DOMEX SUPERFRESH GROWERS 151 Low Road, Yakima, WA 98908Phone: 509-966-1814 Fax: 509-965-3088Website: www.superfreshapples.com Email: [email protected]

Page 55: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 35

Page 56: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

ARTICHOKES

AVAILABILITYOcean Mist Farms is the only year-round grower

of fresh artichokes. Three growing areas allow us tohave a 52-week harvest schedule.

The peak of the annual Castroville, CA, crop willstart in March and go through the end of May. Tra-ditionally, the larger sizes peak at the front end inMarch and April with the smaller sizes peaking inApril and May.

• APRIL: Heavier volume on larger sized artichokes (12-18-24 count)

• MAY: Heavier volume on medium and babysized artichokes (30- to 36-count and baby sizes)

We suggest retailers utilize the variation of thecrop volume (by size) to maximize their sales.

PROMOTIONAL IDEAS: HOLIDAY PROMOSArtichoke sales exhibit sharp peaks in volume

and dollars during holiday weeks and elevate fromFebruary through May, including the following holiday weeks: Valentine’s Day, Easter, Mother’s Dayand Memorial Day.

Seasonality shows Memorial Day weekend thesecond biggest event of year. Opportunity exists tocapitalize on key grilling occasions such as MemorialDay, Fourth of July and Labor Day weekend.

RECOMMENDED DISPLAY IDEASMost artichoke shoppers (72 percent) prefer to

purchase individual artichokes from bulk displays.This preference increases with age and income.

BEST PRACTICES FOR MERCHANDISING ARTICHOKES

Shoppers say the quality of artichokes on displayis the single most important factor when deciding tobuy artichokes. Top 5 Reasons for impulse sales ofartichokes:

• On sale/price reduction – 29 percent• Attractive display caught my eye – 22 percent• In-store advertising – 14 percent• Coupon – 10 percent• Signage in the store – 8 percent

KEY CATEGORY TRENDSArtichoke household penetration is approximate-

ly 30 percent nationally, at approximately the samelevel as Brussels sprouts.

With less than half of consumers making the

56 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

decision to buy at the store, it increases the importance of reaching out to consumers at home onartichoke usage, nutrition and preparation.

The antioxidant level of fresh artichokes seems topresent a potentially powerful sales opportunity.

Seventy-nine percent of survey respondents saidthe fact artichokes are higher in antioxidants thanany other vegetable will have a significant impact onfuture purchases.

Fiber content is another great selling point. MostAmericans consume only about half the daily recom-mended amount of fiber. Artichokes provide a simplesolution. One medium artichoke, which contains 10grams of dietary fiber, provides half the dailyrequirement of fiber.

TRENDS IN ARTICHOKE PACKAGINGMore than half (54 percent) of consumers who

buy packaged artichokes say it is because they aremore convenient. Others purchase packages becauseof perceived value (31 percent).

Ocean Mist offers the following clamshell packs:• 4-count (48- or 36-count size artichoke)• 6-count (36-count size artichoke)• 9- and 12-count baby size artichoke

Other artichoke trend items: • Organic Artichokes• Long Stem Artichokes

Both have Large Hang Tags with UPC code andcooking instructions.

CROSS-MERCHANDISING IDEAS FOR ARTICHOKES

Promote the “Edible Flower” for Valentines orMother’s Day.

Cross-merchandise the following items:• Lemons• Mayonnaise• Olive oil and balsamic vinegar• Stuffing Items such as Brie or Gouda

cheese with bread crumbs

RETAIL PROMOTIONAL TIPSRetailers can build sales by converting

occasional purchasers into everyday consumers.Strategies include:

• Reducing discount percent on some promotions while maintaining a few “hot” promotions to generate excitement

• Heightening visibility of the category withPOS messaging

• Increasing display space with secondary display locations to get artichokes into more consumers’ minds and into their shopping carts

DISPLAY IDEAS AND TIPS FOR RETAILThe photo below shows how a great

display showcases the artichoke’s attractiveness and color.

Go to our merchandising Web page for ideas:www.oceanmist.com

FROST KISSED ARTICHOKESWinter months bring Frosted Artichokes from the

colder temperatures causing the artichoke to “flake &peel.” Most foodies know that once cooked the peel-ing disappears and the frosted artichoke has an

enhanced nutty flavor. Go to our webpage to learnmore on Frost-Kissed artichokes and order POS:www.oceanmist.com

ANTIOXIDANTSPromote the health benefit message of

artichokes — cooked artichokes have more antioxidants per serving than any other fresh vegetable.

Go to our Web page to learn the facts on antioxidant content: www.oceanmist.com

OCEAN MIST FARMS10855 Ocean Mist Parkway, Castroville, CA 95012Tel: 831-770-6435 Fax: 831-633-4363Website: www.oceanmist.com

Page 57: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 90

Page 58: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

OUT-OF-THE-BOXPROMOTIONAL IDEASUse in-store demo programs and meal-theme-related promotions to increase con-sumer awareness of fresh asparagus as aconvenient purchase and economical dinnercomponent as well as a nutritious snack. In-store demo programs have proven highlyeffective in increasing consumer awarenessof fresh asparagus as an “everyday” item.

ASPARAGUS

Per capita consumption of fresh asparagus hasincreased by more than 45 percent since 1998.....inthe last decade alone consumption of asparagus inthe United States has almost doubled, exceeding therate of growth exhibited by nearly all other vegeta-bles. Retailers can help promote consumption andincrease sales of asparagus with just a few simplemerchandising, promotion and handling techniques.

In addition to the U.S. supply sources, Peru hasbecome a major supplier of asparagus allowing U.S.retailers to have year-round availability and thusbuild the category. In 2007, Peruvian asparagus rep-resented 57 percent of the total U.S. Import DollarValue for fresh market asparagus, a 24 percent year-over-year increase.

RECOMMENDED DISPLAY IDEASThe year-round availability of asparagus supports

category management programs designed to build thecategory not only during peak holiday periods butthroughout the year. Strategically displaying the cate-gory to ensure consumers see it will increase sales.Make sure displays are especially visible and well-positioned in the produce department to gain atten-tion.

This highly nutritious vegetable is a convenientconsumer purchase and now includes different formsof packaging available to assist display practices.Fresh asparagus is available in white, as well asgreen, and tips as well as whole spears. Large displaytables of different product forms (whole spear bunch-es, microwave tray-packed trimmed spears which,packaged and bunched asparagus tips, and whiteasparagus) will increase sales and add profits to theproduce department.

SUGGESTED SIGNAGE/POSEffective signage should stress suggestive usage

ideas as well as the many nutritional benefits of freshasparagus. Signage should recommend serving ideasdepending upon the time of the year, such as “greatfor baking”, “easy-to-barbecue” and “microwave-able.”

Nutritional information is also a key element ineffective retail signage. Asparagus is a good source ofpotassium, vitamin A, and vitamin C. Asparagus islow in fat and contains no cholesterol. Asparagus is

58 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

PERUVIAN ASPARAGUS IMPORTERS ASSOCIATIONContact: Priscilla LlerasTel: 817-793-3133Email: [email protected]

Health-related promotional programs are a provenmethod of gaining sales because of fresh asparagus’proven nutritional benefits as well as its delightfultaste.

The Peruvian Asparagus Importers Association(PAIA) has developed a Category Management PlanOutline for Fresh Peruvian Asparagus. Their focus inthe development and distribution of the CategoryManagement Plan Outline is to share information withretailers, consumers and the industry at large regard-ing the health benefits of asparagus, as well as providedata pertaining to the trade. Encompassed within thePlan are statistics identifying market growth andtrends, industry detail, including informational datathat will aid retailers in marketing and promotion,ultimately assisting in efforts to increasing sales. ThePlan also provides retailers and consumers with detailspertaining to the nutritional value of fresh asparagus.

FRESHNESS RECOMMENDATIONSGreen and white asparagus is bright-looking with

closed, firm tips. The butt-end of fresh asparagusshould be cleanly cut and sufficiently hydrated.

DISPLAY, CARE AND HANDLINGIdeally, fresh asparagus should be displayed under

refrigeration or with the butt-end in water or touchinga wet pad. Fresh asparagus has a ninety percent watercontent and care should be taken to avoid the chancefor dehydration. If the butt-ends do not look fresh,they can be trimmed to provide a fresh appearance. Ifthe tips are slightly wilted, they can be freshened bysoaking them in cold water or by misting them.

BACKROOM RECEIVING AND PREPARATION PROCEDURES

Fresh asparagus needs to be kept cold (34-36degrees F) and moist (damp room) prior to display. Therefrigeration chain should not be broken. Freshasparagus is not ethylene-sensitive but is susceptibleto absorbing very strong odors.

CROSS-MERCHANDISING OPPORTUNITIESFresh asparagus has numerous cross-merchandis-

ing opportunities such as with salad, oils and dress-ings, with deli products like ham and cheese, winesand during the Summer, barbecue meats and fish.Tray-packed fresh asparagus can also be cross-mer-chandised with packaged salad.

Fresh and packaged asparagus can also be cross-merchandised in the meat department, for examplewith steaks, to provide a meal solution for customers.

QUICK TIPSDisplay fresh asparagus in a prominent position that is visible and easily accessible.

Display multiple SKU’s of fresh asparagus to increase consumer purchase penetration and frequency of purchase.

Refrigerate and hydrate to maintain quality.

Educate the consumer to the ease-of-preparation and high nutritional benefits.

also rich in rutin and folacin, which has been provenimportant in the duplication of cells for growth andrepair of the body.

VARIETY AND AVAILABILITY GUIDEThe Peruvian season complements the supply of

domestically grown fresh asparagus allowing forstores to offer customers a year-round product. U.S.domestic product usually peaks in the spring andearly summer months. Product from Peru is availablestarting in June, peaking October through December,and wraps up in February.

In 2007, the U.S. imported more than 273,470,208pounds of fresh-market asparagus of which Peruvianasparagus represented over 56 percent of the TotalSupply.

VALUE ADDEDIn an effort to increase household penetration

and reach new consumers, a number of Peruvianasparagus importers are working closely with theirsuppliers and/or farms to bring value-added options— including microwaveable and ready-to-eat — tomarket that are designed for both retail and foodservice. These value-added programs provide the consumer with convenience and savings.

PROMOTIONAL/ADVERTISING IDEASFresh green asparagus is traditionally heavily-

promoted for the Easter, Thanksgiving and Christmasholidays, but increased promotions occur during theSummer with barbecue themes and Fall cross-promo-tions with products. Merchandising white asparagusnext to green offers the consumer more choices aswell as providing a contrasting and attractive display.

Page 59: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Rea

der

Ser

vice

#96

MIS

SIO

NP

ER

ISH

AB

LE

SP

EC

IAL

IST

PR

OG

RE

SS

IVE

PR

OD

UC

ES

OU

TH

ER

NS

PE

CIA

LT

IES

TE

AM

PR

OD

UC

EM

ISS

ION

PE

RIS

HA

BL

ES

PE

CIA

LIS

TP

RO

GR

ES

SIV

EP

RO

DU

CE

SO

UT

HE

RN

SP

EC

IALT

IES

TE

AM

PR

OD

UC

E

KEYSTONEFRUITDOLECUSTOMIZEDBROKERSCHESTNUTHILLFARMSAYCOFARMS

AYCOFARMSCHESTNUTHILLFARMSCUSTOMIZEDBROKERSDOLEKEYSTONEFRUIT

Page 60: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSVisit CaliforniaAvocado.com/Retail for allyour merchandising information, materialsand retail support

Order Hand Grown in California POS materials to drive demand

AVOCADOS, CALIFORNIA

KEY STRATEGIES TO INCREASE SALES• Promote and advertise RIPE California

Avocados throughout the California season(April-Sept)

• Offer a two-size avocado program • Merchandise bagged avocados for value-

conscious consumers

WHAT MAKES THIS CATEGORY IMPORTANT TOTHE PRODUCE DEPARTMENT?

• Avocados are ranked the Number 7 fruit in theproduce department (Source: IRI/FreshLookData)

• Consumer demand continues to climb, withretail sales growing across the country andconsumption of one billion pounds annually isthe norm — and it is still growing

RECOMMENDED DISPLAY IDEAS• Display Hand Grown in California Avocados

in a large prominent, permanent location andalso in a secondary impulse location to boostshopper awareness and sales

• Bagged avocados make an excellent secondarySKU and can generate sales of up to 53 moreunits per store, per week than stores withoutbags*

• A two-size strategy (selling both large andsmall size avocados) can increase category volume and sales by nearly 100 percent*

• Avocados stickered as “RIPE” can outsell non-stickered fruit by as much as 28 percent*

RIPENESS RECOMMENDATIONS• Advertise and display Ripe California Avocados

to capitalize on your shoppers’ demand for ripeavocados (as much as four to one over firmfruit)*

• 77 percent of shoppers purchasing avocadosplan to eat them within 48 hours*

SIGNAGE• Use Hand Grown in California POS materials

to increase shopper awareness and help boostsales

• Use “RIPE” and “Ready to Eat” signage on dis-plays of RIPE California Avocados

• Feature recipes and usage ideas to spark con-sumer purchase

• Draw attention to displays of Organic Califor-nia Avocados with point-of-sale signage

60 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEASConsumers think of avocados as a celebration food

Special occasions and events drive avocado sales, for example: March Collegiate Basketball, Cinco de Mayo,Mother’s Day, Memorial Day, Father’s Day,Fourth of July, Labor Day, St. Patrick’s Day,Tailgating opportunities, World Series,Thanksgiving, New Years, Super Bowl,and local events and celebrations

NUTRITION Provide shoppers with nutritional information toencourage purchase:

• Avocados are included in Fruits & Veggies-More Matters™ consumer educational program to promote increased consumptionof fruits and vegetables for good health

• Avocados contain 81 micrograms of thecarotenoid lutein, which some studies suggest may help maintain healthy eyes

• Avocados contribute nearly 20 vitamins,minerals and beneficial plant compoundsthat can contribute to the nutrient qualityof your diet

• Avocados, due to their mono and poly-unsaturated fat content, are a healthy substitution for foods rich in saturated fat

• One-fifth of a medium avocado (1 oz) has50 calories and contributes nearly 20 vitamins and minerals making it a goodnutrient choice

• Avocados contain 76 milligrams beta-sitosterol in a 3-oz serving of avocado.Beta-sitosterol is a natural plant sterolwhich may help maintain healthy choles-terol levels

• Visit CaliforniaAvocado.com for completenutritional details

CROSS-MERCHANDISING OPPORTUNITIES • California Avocados provide excellent cross-

merchandising opportunities with both groceryand produce items to maximize sales opportu-nities: bagged salads, limes, lemons, peppers,tomatoes, chips and snacks, sandwich andhamburger items, soups, pizzas, ethnic foods,wines and more

DISPLAY CARE AND HANDLING• Always rotate and refresh displays daily• Always handle avocados gently to avoid

bruising• Never display avocados near misting systems,

on wet-racks or on refrigerated displays below42° Fahrenheit

BACKROOM RECEIVING AND PREPARATION PROCEDURES

• Bring the avocados inside the store immediate-ly upon arrival

• Place boxes with soft fruit on top and thosewith firmer fruit on the bottom

• Breaking and ripe fruit may be stored in acooler

• In general, firm preconditioned fruit can beheld at room temperature for three to five daysand breaking-to-ripe fruit for two to three days

• Do not store hard, non-breaking fruit below45° Fahrenheit to avoid chill damage

VARIETY AND AVAILABILITY GUIDE• In additional to Hass (which represents nearly

96% of the national retail avocado volume*),other delicious Hand Grown in Californiavarieties include Lamb Hass (a summer Hass-like variety), Bacon, Gwen, Fuerte, Pinkerton,Reed and Zutano

• Organic Hand Grown in California Avocadosprovide an excellent opportunity to build yourcategory

Contact the California Avocado Commissionfor more information about:

• Nutritional research and studies• In-store ripeness audits• Best practices merchandising research• Avocado business reviews (category data)• Promotional opportunities• Co-marketing programs • Point-of-sale material • Consumer advertising

Insist on California Avocados

*Based on California Avocado Commission BestPractices Research and data

California Avocado Commission38 Discovery, Suite 150, Irvine, CA 92618-3105Phone: 949-341-1955 Fax: 949-341-1970Website: CaliforniaAvocado.com/Retail Email: [email protected]

Page 61: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 6

Page 62: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSEnsure proper backroom handling conditions and procedures

Keep your DOLE Banana display fullystocked and clean during business hours

Have nutrition and recipe information available for your customers or direct them to www.dole.com

BANANAS

62 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

Other higher priced retail items, including apples,avocados, and melons, did not fare so well. For theseitems, dollar sales increased, but the number ofpounds sold decreased. The national trend is quiteconsistent across the regions of the United States;however, the competitive effects of changes in retailpricing had significant market share implications.Contact your Dole representative to review theresults from your region and ensure you are gettingyour fair share of the market.

BACKROOM RECEIVING AND PREPARATION PROCEDUES

Dole Fresh Fruit Company provides its retail andwholesale customers with services that improve theway products are received, handled, ripened and displayed. A knowledgeable team of technical servicerepresentatives work directly with Dole customers to perfect ripening, equipment management and handling procedures.

Our team of merchandising representatives worksat retail stores to help develop displays that willmove more DOLE Bananas.

RECOMMENDED DISPLAY IDEAS When building a profitable banana display at

retail, there are several items to take into account.Brand recognition and loyalty are key. A recentindependent study showed that consumers look forspecific brands that they trust to buy. The studyfound, “DOLE continues to stand out as the brandconsumers say they seek out and buy when avail-able.” Thirty-five percent of respondents surveyedsaid they buy DOLE products. The next brand men-tioned received only 14 percent.

Your DOLE Banana display should be positionedin a prominent area, preferably the front-end displayunit in the produce department.

A beautifully stocked display will draw con-sumers into your produce department. Stocking isimportant. With the busy lifestyles that most peoplelead today, the time people shop is scattered aroundthe clock. The morning and afternoon will bring inthe stay-at-home-mom crowd, as well as seniors.Both of these demographic groups are loyal DOLEBanana consumers. In the evening, late at night andon weekends, you will have an influx of shoppers

DOLEOne Dole Drive, Westlake Village, CA 91362Tel: 818-874-4000 Fax: 818-874-6501Wesite: www.dole.com

OUT-OF-THE-BOXPROMOTIONAL IDEASEntice consumers with incentives toincrease their banana transaction size

Feature “Fourth Pound Free” Promotions

Arrange for Bobby Banana tomake a surprise visit to your

store

BANANAS ARE WELL POSITIONED TO PROMOTE IN A DIFFICULT ECONOMY

Consumers are faced with very difficult choicesas economic conditions worsen. Policymakers andpundits have made it clear that the economy is likelyto get worse before it gets better and recentlyreleased economic statistics appear to confirm thisoutlook for the future.

In addition to the nutritional value, convenience,and flavor that bananas offer to consumers, bananasare also the lowest cost fruit in the produce depart-ment. Consumers clearly understand this. The tablebelow demonstrates this by showing the change inretail dollar sales, pounds sold, and average retailprice between 2007 and 2008 for the total UnitedStates.

Despite experiencing the highest national aver-age retail price increase (except cherries),18.6%, thebanana pound sales still increased 2.5% banana in2008 compared to 2007, according to Fresh LookMarketing data.

who work full time and fit shopping into theirschedules.

All these consumers have one thing in common;they all like to buy their DOLE Bananas from a neat,fully stocked banana display. If the display appearshalf-empty, they get the impression the fruit hasbeen picked through, leaving them with the leftovers.This is why it is critical to keep your DOLE Bananadisplay fully stocked, cleaned and culled throughoutbusiness hours

GIVE YOUR CONSUMERS MORE OF WHAT THEYLOVE… MORE OF WHAT IS GOOD FOR THEM

Bananas continue to be a top selling item sold ingrocery stores with household penetration exceeding90%. Consumers love the banana’s sweet taste,nutrition, and convenience. Still, the average retailbanana transaction size remains at roughly 2.5pounds.

This is due in part to the established daylightbanana consumption patterns by consumers centering around breakfast or a snack early in theafternoon. Dole has seized upon an opportunity toeducate consumers about delicious and exciting newusages for bananas, nutritional benefits, and otherincentives that promote purchasing more of thebananas they already love.

The goal of this integrated promotional strategyis to increase the average retail transaction size byone-half-pound without resorting to steep retail promotional price reductions. Dole provides its cus-tomers with customized turn-key, easy to executepromotional programs that will increase the bananatransaction size and banana profits!

Dole provides retailers with all of the customizedcomponents to ensure success; including eye-catch-ing point of sale materials that communicate clearmessages to the consumer, in-store posters, take-oneeducational materials, and retail-specific webpages.Total US Retail Conventionally

Grown Fresh Fruit Sales

% Change 2007 - 2008

Product $ Sales Lbs Sold Retail Price

Apples 6.3% -7.0% 13.9%Avocados 10.2% -0.6% 9.3%Bananas 19.3% 2.5% 18.6%Berries 9.6% 6.4% 3.4%Cherries -6.7% 3.4% 19.9%Grapes -0.6% -0.9% 5.4%Melons -0.4% -6.5% 5.2%Oranges 12.3% -1.1% -12.7%Peaches 5.8% -4.8% 2.4%Pineapple 1.2% 0.0% 2.0%

Source: FreshLook Marketing

Page 63: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

ORGANIC/SPECIALTY BANANAS

MARCH 2009 l MASTERS OF MERCHANDISING l PRODUCE BUSINESS 63

The banana category is dominated by themighty yellow Cavendish, 96.9% of US bananacategory sales to be precise. However oppor-tunities for growth lie in a small sliver of thebanana category.

According to FreshLook Marketing data,plantain dollar sales increased 19% in 2008

compared to 2006, up 15% alone from2007. Plantains comprised 2.9% of

banana category sales in 2008. Futureplantain sales growth is expected as His-panic populations continue to grow and

spread out throughout the US.Sales of Manzanos, aka the Apple

Banana, have also soared 63.1% over thepast two years, and 15% in 2008 over 2007.Sales of Niños, aka Baby bananas, declinedlast year, and red bananas sales in 2008 wereflat.

Frequently, these specialty bananas aremerchandised as mere decoration on thebanana display. Make sure specialty bananasare clearly visible, in good condition, andmerchandised with point of sale material thatprovides consumers with sufficient informa-tion on how to select and best enjoy theseexotic treats.

These tasty varieties can add excitementand color to your produce department as wellas generate additional margins. Your Dolerepresentative can help customize a specialtybanana program tailored to the demographicmakeup of your stores.

ARE YOU LOSING REVENUE AT THE CHECK STAND?

Consumer interest in fresh organic fruit has sky-rocketed. From 2007 to 2008, fresh organic fruit dol-lar sales increased 25% and pound sales jumpedmore than 50%, according to FreshLook Marketingdata. Consumers have shown a willingness to pay apremium price for organic fruit in exchange for thereassurance that the bananas were grown in a moreearth-friendly manner. Berries, apples, and bananasare the top selling organic fruits in the producedepartment, while bananas are largest when rankedby pounds sold.

Unfortunately, retailers do not always realize theprice premium between the organic and convention-al produce item at the register. Unlike packagedgoods with UPCs that are scanned at the checkoutfor an accurate ring every time, random weight per-ishable produce items still rely on the cashiers to keyin the correct PLU code for the right price. Whileexpediting the purchases of busy consumers, it is

Total US Retail OrganicFresh Fruit Sales

% Change 2007 - 2008

Product $ Sales Lbs Sold Retail Price

Apples 18.8% 41.0% 11.8%Avocados 38.5% 40.8% 12.8%Bananas 25.3% 48.2% 11.3%Berries 34.1% 123.6% 12.6%Cherries 54.5% 94.3% 15.9%Grapes 13.5% 85.1% 11.5%Melons -18.4% -9.6% 3.2%Oranges 29.2% 47.1% -7.1%Peaches 51.7% 148.3% 7.1%Pineapple 14.5% 104.6% -6.4%All Other 22.3% 49.4% 9.6%Total 25.0% 53.5% 11.4%

Source: FreshLook Marketing

organic banana clusters. The band prominently high-lights ORGANIC and the PLU code, making it easierfor cashiers to identify it.

In parallel, the industry is now making stridestoward the adoption of a new barcode: the GS1DataBar. The DataBar is encoded with a14-digitGTIN (global trade identification number) that identifies the product and its supplier and also distinguishes from conventional and organic. Thisbar is small enough to fit on bananas and most otherproducts, and ensures the correct price is charged tothe consumer.

Having cashiers scan the DataBar on a bananainstead of entering a PLU will allow retailers to ringthe correct price for organic bananas and not loseany revenue at the check stand. Wal-Mart andLoblaws are already scanning the DataBar in somestores. Your Dole representative can assist you tomaximize organic banana sales and reduce shrinkdue to misidentified product at the checkout stand.

difficult for a cashier ringing large numbers of itemsto differentiate between organic and conventionalbananas.

To ensure retailers do not lose any banana rev-enue and to avoid confusion at the check stand, Dolehas developed an attractive band to wrap around

DON’T FORGET SPECIALTY BANANAS

Page 64: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 58

Page 65: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE
Page 66: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

BERRIES

EXPANDABLE CONSUMABLEExpandable consumable is a marketing term that

describes the product as consumable, like food, asopposed to durable, like a washing machine.Expandable means that there are opportunities toincrease consumption, user base or usage of theproduct. Expandable consumable is the perfect defi-nition of the berry category. Not only are berries ofall types consumables, but they are rapidly con-sumed — completely consumed within days of pur-chase. That is why very few products in your super-market offer virtually unlimited opportunities toincrease sales and profits like the berry category.

USER PROFILEEach berry in the category has its own user base

and consumption profile with opportunities for con-tinued growth. Strawberries are the largest of theberry items. They have an almost universal user base— over 94 percent! The way to grow the use ofstrawberries is to increase consumption. Over theyears, data shows that, as long as strawberries areavailable, great tasting and of good quality, con-sumers will keep buying them. People who like toput strawberries on their cereal in the morning willdo so twelve months out of the year, every day ifthey can. Per capita consumption of strawberries isat 6.1 pounds and still growing — up 50% in the lastdecade.1

Blueberries are one of the fastest growing pro-duce items in both expansion of the user base and

66 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

per capita consumption. Even with this greatincrease in demand, the user base for blueberries isalmost 75 percent2 and per capita is 0.6 pounds1—still a long way from reaching full growth potential.

Raspberries and blackberries may both be on thesteepest growth curve. Raspberry consumption, forexample, has increased four and a half times thisdecade.1 Both are extremely popular with berrylovers, but per capita and user base for both berrieshave unlimited growth potential — as long as theyare available, delicious and well merchandised.

Sources: 1. USDA/EMS data, 2. High Bush Blueberry Council

THE BERRY PATCH DYNAMOWhy don’t we put all of these very popular, high

growth, high velocity, expandable- consumables inone spot in the produce department and see whathappens? Savvy produce marketers have been doingso with phenomenal results. Berry patch displays arebecoming a destination spot in most supermarkets.The result is one of the highest dollar-and profits-per-square-foot locations in the store. And, again, weare talking about expandable-consumable so thereare increased sales and profits to be gained with anaggressive Berry Patch strategy.

WAYS TO PUMP UP THE VOLUMEDriscoll’s believes that the first step to increase

the volume, sales and consumer satisfaction is to usea branded Berry Patch approach. Driscoll’s mission isto continually delight berry consumers. That meansfocusing on flavor, texture, appearance, aroma —everything that gives the consumer a delightful eat-ing experience with every berry, every day. With

year-round availability of Driscoll’s strawberries,blueberries, raspberries and blackberries continuingto grow, you can count on Driscoll’s great qualityand distinctive flavor every day.

Another great strategy is to move the berry patchfrom the store to the home. Buy one get one free(BOGO) is a frequent promotional strategy. Tryexpanding that concept to multiple berry purchases— buy two raspberries and get a strawberry free.When customers try the idea of buying and usingmultiple berries in common situations — on cereal inthe morning or with cottage cheese as a snack —they will continue to do so even when not on promotion.

DRISCOLL’S STRAWBERRY ASSOCIATES, INC.345 Westridge Drive, Watsonville, CA 95076Phone: 831-763-5000 Fax: 831-761-5988Website: www.driscolls.com

Page 67: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

LET’S TALK ABOUT HEALTHY EATINGAnd, the good news keeps coming in about all of

the berries in the category. Strawberries are low incalories with no fat and a huge daily contribution ofantioxidants. Blueberries are well known for theirnutritional benefits and research continues to showthat raspberries and blackberries may have evenmore health benefits.

SAFETY FIRSTIn addition to producing berries that delight con-

sumers, Driscoll’s berries are grown with the higheststandards of care and food safety possible. All inde-pendent farmers around the world that growDriscoll’s berries must adhere to the same strict GAPand GlobalGAP guidelines enforced by a rigoroussystem of internal and independent third-partyaudits — second to none in the produce industry.

BACKROOM RECEIVING ANDPREPARATION PROCEDURESReceive berries directly into refrigerated warehouses.

If berries arrive wrapped in plastic, remove the plastic immediately.

Optimal temperature for berries is between32° to 34° F with humidity levels at 90 to 95percent.

Transport to the store on refrigerated trucks.

Quickly move berries from the loading dock to the cold storage room.

DISPLAY CAREAND HANDLINGKeep your berries refrigerated from thereceiving dock to the shelf.

Keep berries dry. Any moisture will hastenbreakdown, shorten shelf life and shrink sales.

Make sure your Berry Patch display is fullystocked at all times.

Remove packages with leaky or moldyberries. One bad berry package will impactyour sales and store image.

Raspberry Goat Cheese Salad (above) and Mixed Berry and Cheese Crostini (below)

PRODUCE MERCHANDISER’S DREAMIndeed, the berry category is a produce merchan-

diser’s best dream — a product that people love, buyand use quickly, and come back to buy more. Abranded, destination Berry Patch display featuringDriscoll’s berries gives even more potential to arapidly expanding, profitable category.

MARCH 2009 l MASTERS OF MERCHANDISING l PRODUCE BUSINESS 67

Page 68: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 82

Page 69: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 83

Page 70: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

PROMOTIONAL/ADVERTISING IDEASDue to their brilliant orange color, carrots can be

part of eye-catching displays.Carrots and carrot products are appropriate for

sampling. You can keep up with Grimmway’s latestad campaigns on our Web site: Grimmway.com.

DISPLAY, CARE AND HANDLINGWith bulk carrots, maintain temperatures from

33° to 35° F with relative humidity of 98 to 100 percent. Bulk carrots can be lightly misted but areethylene-sensitive and should not be stored or transported with ethylene-producing items as theygive carrots an off flavor.

The tops of bunched carrots should be fluffed tomaintain air circulation. Beware that the tops drawmoisture from the carrots themselves and will causethese carrots to have a shorter shelf life.

If the exterior of carrots starts to appear white,dunk them in ice water to freshen the carrots.

Maintaining the cold chain is of prime importance with value-added carrots including babycarrots.

CROSS-MERCHANDISING OPPORTUNITIES Carrots and fresh-cut carrots are traditionally

cross-merchandised with dips and salad dressings;one can also use peanut better, yogurt, etc.

Carrot cake is a favorite for everyone. So cross-merchandise with all the ingredients. Samplecarrot-cake cupcakes and give out a recipe.

Soups and stews cre-ate many cross-mer-chandising opportuni-ties. And signage indi-cating that any saladcan be enhanced withcarrots is always agood idea.

Finally, don’tforget to suggestcarrot curls as agarnish with holi-day meals.

CARROTS

RECOMMENDED DISPLAY IDEASCarrots are among the categories that have most

benefited from the value-added revolution. The mer-chandising opportunities available have led to dra-matic increases in carrot category volumes, whichjustify substantial attention being paid to the propermerchandising and marketing of carrots. Some keydisplay points:

1) Carrots sell best when they receive a high-visibility central display that includes thefull range of carrot items plus a generous secondary display in the produce department,tying into similar items and being used ascolor breaks throughout the department.

2) The main carrot display should include babycarrots, microwavable petite carrots for cook-ing, carrot chips, carrot Stixx, crinkle-cutcoins, shredded carrots, multipack baby car-rots and Carrot Dippers snack packs, jumbocarrots, table carrots, cello carrots, bunch car-rots with tops.

3) A large secondary display with other value-added produce should include baby car-rots, carrot chips, carrot Stixx, crinkle cutcoins, shredded carrot and microwavablepetite carrots for cooking.

4) In addition, both baby carrots and tablecarrots, with their natural orange color, shouldserve as a terrific color break for use through-out the department.

5) Don’t forget to include carrots as part of yourorganic display. BunnyLuv and Cal-Organicbrands offer 52-week-a-year avail-ability of a largerange of certifiedorganic carrots.Organic carrotsconsistently rankamong the topselling organicitems.

OUT-OF-THE-BOXPROMOTIONAL IDEASMerchandise carrots in the deli next tofresh roasted chickens and other ready-to-eat items to integrate a healthful, colorful,vegetable meal-solution display.

Put carrots in the meat case next to theassortment of ready-to-cook meal items toremind consumers to serve healthful freshcarrots with their protein-based maincourse.

A display of baby carrots at the seafoodcounter reminds consumers of the need fora fresh vegetable with their fine fish.

GRIMMWAY FARMSP.O. Box 81498, Bakersfield, CA 93380Tel: 661-845-9435 Fax: Website: www.grimmway.com

70 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

6) Salad bars also benefit from a full complementof carrot items. Grimmway offers foodservicepacks perfect for putting baby carrots, carrotchips, carrot Crisps and shredded carrots inany salad bar.

7) Finally, all juicing programs require fresh carrots to be a success — the sweet juice of thecarrot makes it a perennial favorite for thoseordering fresh juices.

POINT-OF-PURCHASE / SIGNAGECarrots are a naturally healthful snack. Let

consumers know that the top messages are:• All natural• No fat, no cholesterol• The kid-friendly vegetable™Channel strips are an excellent way to grab the

shoppers’ attention. At Grimmway.com, we offer arange of point-of-sale material including a set of 1x 8-inch strips to add eye-catching clarity to your carrot displays.

VARIETY AND AVAILABILITY GUIDEGrimmway Carrots are available year-round with

consistent quality. California’s abundant sunshineand range of growing areas produce approximately85 percent of the nation’s carrots.

QUICK TIPSCarry the full variety of value-addedGrimmway carrot products.

Emphasize the healthful attributes of carrots.

Display carrots in multiple locations in the store.

Page 71: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 28

Page 72: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

CELERY

VARIETY AND AVAILABILITY GUIDENobody knows celery like Duda Farm Fresh

Food, Inc. Since 1926, when we brought our firstcommercial crop of celery to market, we’ve grown tobecome one of the world’s most successful producersand processors of agricultural products. Consideredto be the largest celery growers in the world our rep-utation stands on the research and development ofnew and exciting celery varieties. Through our celeryresearch program Duda Farm Fresh Foods is generat-ing 1,000 to 1,200 lines of celery a year, focusing oncharacteristics such as flavor, nutrition, texture andappearance. Consumers benefit from Duda FarmFresh Foods years of celery breeding expertise.

Today we grow Dandy® brand celery from one ofour many proprietary varieties, specifically adaptedto our regional growing conditions. Our year-roundavailability provides options for regional specificprograms supplying sustainable options for retailers.

RECOMMENDED DISPLAY IDEASResearch on celery destination shows consumers

are looking for convenience in their shopping trips.

72 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEASShoppers of celery are cookers or snack-ers. To capitalize on the cooker consumercategory, cross-promote private brandedeggs, sugar, flour, or milk since these tendto be basic staples in the cook’s kitchen.

Center-of-the-plate proteins (meat or delicounter) offer a great way to cross pro-mote for this category as well.

The snackers category would enjoy seeingcelery next to the fresh dips and saladdressings.

Merchandising can help provide this convenience bylocating celery products adjacent to one another.Whole celery, hearts, sticks and branches located inthe same display space make it easy for consumersto find and make selections.

There are two types of celery consumers — thoseconsuming celery primarily as a snack and thoseusing it as an ingredient in recipes. The snackers arehelping grow the value-added segment as celerysticks are gaining in popularity. This presents a greatopportunity for retailers to increase their celery busi-ness through sticks, sticks with dips, and snack packsfor lunch boxes.

Research also indicates consumers in generalwould like to see more choices and new productoptions for celery like Dandy® brand washed andready-to-eat celery sticks and trimmed, washed andready-to-use Dandy® celery branches.

POINT OF PURCHASE/SIGNAGECelery is a natural and healthy snack. Key health

messages on in-store signage should include:* Naturally Fat Free* Naturally Cholesterol Free* A Low Sodium Food* Good Source of Vitamins A, C and K* Good Source of Dietary FiberChannel strips and danglers are a great way to

grab your shoppers’ attention. Consider offeringthese in multiple languages if that makes sense foryour store demographics. Duda Farm Fresh Foodswill help you customize in-store display signage.

PROMOTIONAL/ADVERTISING IDEASBack page advertisements and the buy one get

one free (BOGO) promotions are the most effectivetype and result in large dollar and volume lifts andpositively impact the entire category.

DISPLAY CARE AND HANDLINGMaintain temperatures from 32 to 36° F with

relative humidity of 90-98 percent. Bulk celery maybe lightly misted to maintain freshness but are ethyl-ene sensitive and should be kept away from ethylene

producing fruits. Celery tends to absorb odors fromother commodities and should not be stored ortransported with apples or onions.

If discolored or damaged, ribs should be removedfrom the stalk. If celery appears white at the ends orlimp submerge in ice water to freshen. Maintainingthe cold chain is of utmost importance in keepingcelery fresh and crunchy.

CROSS-MERCHANDISING OPPORTUNITIESTraditional cross merchandising items for celery

include fresh dips and salad dressings. Peanut butter,caramel, and chocolate work well as additional items.

Hand out recipes for traditional celery stuffingduring the holidays and merchandise all the recipeingredients together. For an everyday recipe itemsuch as peanut butter stuffed celery with raisins,merchandise the recipe items alongside the celerycategory items.

A mirepoix mix, consisting of diced celery,onions and carrots is at the heart of countless flavor-ful recipes, from stocks and sauces to hearty soups,stews and braised meats and casseroles. A mirepoixis used all over the world to build the first layer offlavor in many familiar specialties. Providing this tipnear the celery, onions or carrots and tips on knifeskills and proportional dicing of vegetables willshow the cooker how these items further fit into theirlifestyle.

DUDA FARM FRESH FOODS, INC.P.O. Box 620257, Oviedo, FL 32762Phone: 407-365-2111 Fax: 407-365-2010Website: www.duda.com Email: [email protected]

Page 73: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 64

Page 74: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSProvide an assortment of packaging — allconsumers are not alike.

Promote cherries in a high-traffic area —their seasonality creates excitement.

Promote dark sweets and Rainier together— they make a great team.

CHERRIES

Sweet cherries remain one of the few truly sea-sonal items and are viewed by consumers as “anaffordable luxury”. For many consumers, cherriessignify that an exciting time of year has arrived — atime of picnics, barbecues and other fun outdooractivities with the family. So make sure you let themknow when cherries are available. Large displays,signs and feature ads are money well spent on thisamazing growth category.

CHERRY CATEGORY PERFORMANCECherries are the #1 selling produce item in terms

of sales per square foot of retail space. In the monthof June, weekly per store cherry dollar sales for eachsquare foot of display space outsell the 2nd leadingproduce item by 194%! In the month of July, cher-ries outsell the 2nd leading produce item by 96%.This translates into category contributions that aver-age nearly 7% across the United States for the monthof July. Many retailers enjoy cherry category contri-butions of over 10%.

Domestic per capita cherry consumption contin-ues to grow. Widening popularity amongst con-sumers and a growth in understanding of thetremendous health benefits associated with cherrieshave contributed to a 400% growth in per capitacherry consumption over the last 12 years. Despitethis impressive growth, cherries continue to have avery low penetration rate, indicating tremendousopportunity for continued growth.

RECOMMENDED DISPLAY IDEASNothing attracts attention and generates sales

like a large cherry display. The display should bewell signed and placed at the front of the departmentin your primary selling location. During the peak ofthe season, a secondary display toward the back ofthe department will generate additional sales.

Make sure you offer a mix of dark sweet cherriesand delicious Rainier cherries. Rainiers continue togrow in popularity each year, and are critical to suc-cessful cherry category sales. Also offer a choice ofcherry packaging options: large clamshells for heavyusers and 2-pound bags for those who prefer less.

Finally, the key to a great cherry display is to

74 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEASPlace cherry clamshells in the dairy sec-tion next to the yogurt — a delicious snackfor low-fat diets.

Run a summertime cherry promotion usingclamshells or bags — they’re ready-to-gofor family outings.

Offer samples of Rainier cherries to drivesales — one taste and the higher costwon’t affect consumers’ decisions.

Run a “Superfresh Cherry” ad featuringlarger sized cherries.

have cherries for the entire season. Cherry seasonnow extends for multiple weeks; plan early to lock-in your supplies and work closely with DomexSuperfresh Growers for merchandising ideas, point-of-sale materials and packaging opportunities.

POINT OF PURCHASE SIGNAGESince cherries are seasonal, it is important to

remind your customers when cherries are back. Thiscan be done through in-store signage, circulars andin-store radio/TV. In fact, studies show that in-storeradio and TV can increase sales of cherries by asmuch as 14%. Signage is also a great way to educateyour customers about special items such as Rainiercherries, extra large cherries and more. The Rainiercherry demands a premium price, and a quick signidentifying its super sweetness and unique color canhelp drive sales.

VARIETY AND AVAILABILITYDomex Superfresh Growers cherries are available

from May into mid-August. While the primary variety remains the Bing, there are several other darksweet cherries that help extend the season on thefront and tail ends. The Rainier cherry is typicallyavailable from June 25th through July 25th — asmall window with huge opportunity. It is imperativethat you run ads promoting Rainier cherries during this period, and increase shelf space by atleast 25% to realize the category’s maximum liftpotential. Make sure to offer your customers a

premium large Rainier cherry. Although the per-pound price might be more, consumers who experience them keep coming back for more duringthe entire season.

AD FREQUENCYSuccess in your cherry program involves sched-

uling ads and setting pricing goals before the seasonbegins. This will help you realize maximum categoryperformance and keep your cherry supplies depend-able. As the crop can vary widely year-to-year it isimportant to look at what each season can offer.

A SUPERFRESH CHERRY IS SUPER HEALTHYThe health message continues to drive consumer

purchasing decisions and this “sweet health” message is a great tool to reach out to shoppers concerned about a healthy lifestyle. A University ofCalifornia study revealed mechanistic evidence suggesting that specific anti-oxidants found in sweetcherries can modulate oxidant stress and inflamma-tion associated with ailments such as gout andarthritis. Likewise, cherries are a good source ofpotassium, Vitamin C and fiber.

DISPLAY The cold chain is king when it comes to cherries.

Keep cherries in your cold room until they’re readyto be displayed. If a refrigerated display is not anoption, make sure you properly rotate your suppliesand put cherries back into the cold room in theevening.

Display cherries in your high traffic area. Allowample shelf space in that high-traffic area andsteadily rotate your supplies during the course of theday. Maintaining an ample supply of cherries is criti-cal for a successful cherry season; your cherry planneeds to include securing supplies from early Juneinto early August.

BACKROOM CARE AND HANDLINGKEEP CHERRIES COLD. The higher the storage

temperature, the shorter the shelf life. In fact, inter-nal fruit quality drops more in 1 hour at 68° F (20°C) than in 24 hours at 32° F (0° C).

DOMEX SUPERFRESH GROWERS 151 Low Road, Yakima, WA 98908Phone: 509-966-1814 Fax: 509-965-3088Website: www.superfreshcherries.com Email: [email protected]

Page 75: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 36

Page 76: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSThink outside the box, place pepperseverywhere throughout the store.

Don’t feel as if you have to segregate chilipeppers; group them together and show offtheir colors, shapes, and variety.

Check the demographics of your area; thenyou will know what peppers are best tofeature.

CHILI PEPPERS

RECOMMENDED DISPLAY IDEASWorking with beautiful product such as chili pep-

pers makes it easier to find successful ways of dis-playing and increasing chili pepper sales. There are avariety of ways you may find chili peppers highlight-ed in a store — separated into baskets on a wet rackor perhaps piled high on an end cap. Each of thesedisplay techniques provides opportunities. Dividingchili peppers into baskets allows for clear labeling ofeach variety, while a large display of one variety onan end cap works well in an area with a larger His-panic or Asian population. A best practice for dis-playing chili peppers is placing them near bell pep-pers and presenting chilies all together highlightingthe variety and their rich colors.

Another great way to introduce or reacquaintcustomers with chili peppers is to package a varietyof peppers together. Personalize a customer’s experi-ence by including a usage guide/recipe. This willserve as an effective way to share the variety of heatlevels, color, and variety.

SUGGESTED SIGNAGE/POSChilies come in a variety of sizes, colors, and

heat levels. Store signage and POS highlighting heatlevel are effective ways to help customers identifythe variety and the intensity of spiciness. Recipes,care and handling guides, and health benefits areother unique ways to capture additional sales andspark creativity among shoppers. A bit of informa-tion to help educate the customer can go a long way— something as simple as a reminder to wear gloveswhen slicing, dicing, and deseeding hotter varietieswill prevent customers from having an unpleasantprepping experience.

Education can also go a long way with your salesstaff. Be sure to keep them educated on pepper vari-eties. Popular cooking magazines often highlightmany unique pepper varieties, which often encourageshoppers to ask their friendly grocery staff. Keepupdated to ensure optimal sales.

When recommending the perfect peppers formeal ideas, choose peppers that have firm and shinyskin, and avoid soft spots or ones that are shriveled.Also, remove peppers that have black stems as this isan indication of old age. Other hot tips includereminding customers to drink milk if they happen toindulge in a spicy pepper. Chili peppers come in awide range of spiciness; therefore, it is important to

76 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEASChili pepper eating contestIt is clear that chili peppers can spice upany department by variety, color, and heatlevel. They also lend themselves well tofood demonstrations. Get interactive andfeature a chili pepper eating contest forbrave customers. Pacifico beer featuredan advertising campaign that highlightedchili peppers in pepper roulette.

break previous misconceptions of all chili peppersbeing hot. Signage is an effective way to communi-cate heat level and encourage shy customers to try anew variety.

VARIETY AND AVAILABILITY GUIDEChili peppers are available year round and lend

themselves to colorful displays. Originating in SouthAmerica, they are grown throughout the U.S., Mexico, and Central America.

While there are many varieties, here is a sampling of various varieties:

BananaHungarian WaxAnaheimPoblano (also known as the Pasilla)Yellow HotJalapenoRed FresnoSerranoThaiHabanero

PROMOTIONAL/ADVERTISING IDEAS The Super Bowl revs up excitement for teamwork

and snack foods. Jalapeno poppers, spicy guacamole,Habanero salsa, nachos with Jalapeno slices, andspecialty drinks like the Flaming Jalapeno are sure toliven up any party.

Color each season with chili peppers — deck thehalls with green and red chili peppers during Christ-mas, inspire the festivities of the Chinese New Yearwith red chili peppers, and decorate to celebrate St.Patrick’s Day with an array of green chili peppers.Any holiday becomes more exciting whether it isCinco de Mayo or Christmas.

COAST PRODUCE COMPANY1791 Bay Street, Los Angeles, CA 90021Tel: 213-955-4900 Fax: 213-955-4949Website: www.coastproduce.com Email: [email protected]

Highlight a few features of the super chili pepper: Battling a powerful migraine or sinus headache,

chili peppers to the rescue...the natural occurringcapsaicin (chemical that makes chili peppers hot) aidsin reducing pain by affecting the brain’s main paintransmitter.

Power healer, capsaicin, fights nasal congestionand chronic sinus infections — a great way to helpcustomers through the flu season. Be sure to recommend making a tea or lozenges with chili peppers to combat that pesky sore throat.

The benefits of capsaicin do not end in the fluseason…capsaicin is also beneficial in fighting cancer. Cancer studies supported by the NationalCancer Institute indicate that capsaicin acts as natural inhibitors in the cancer process.

Support any New Year’s resolution or diet planby promoting the natural benefit chili peppers haveto burn body fat. Chili peppers turn up the heat bybeing a natural thermogenic and increasing metabo-lism and generating heat.

Reducing high blood pressure and cholesterol,loaded with more vitamin C than an orange, and thepotential to keep your feet warm in the winter areadditional benefits of this super food.

DISPLAY CARE AND HANDLINGChili peppers are easy to handle; they require no

misting, and typically have a shelf life of 14 to 21days. Fresh chili peppers are best received and kept at38 to 44° F with a relative humidity of 60 – 70%.

Avoid rough handling as damaged chilies willdecay rapidly.

CROSS-MERCHANDISING OPPORTUNITIESBell peppers complement chili peppers beautiful-

ly. They are a part of the same family, come in anarray of colors and make for great partners in mealsand on the shelf. Placing Jalapenos near avocados,tomatoes, onions, garlic, and cilantro give customersan upper hand in guacamole and salsa preparations.

Chili peppers also go hand in hand with limes.Not only are they utilized in salsa and guacamole,but they are a perfect match for Baja style tacos,marinades, fajitas, or adding any additional flavor.Poblano peppers placed near cheese give customersincentive to make chili rellenos. Grab Anaheim orBanana peppers and link them to the meat depart-ment for a great recipe to make stuffed peppers.Spice up lemonade with Jalapenos or add some flareto nacho fixings.

Page 77: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 30

Page 78: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPS

Promote citrus during its Peak Flavor

Offer both Bulk and Bagged Citrus

Conduct in-store sampling

Provide recipe and usage suggestions

CITRUS

YEAR-ROUND SUPPLIES AND PROFITSWith the availability of great tasting citrus year-

round, retailers now have the opportunity to growcitrus sales and profits significantly. Navel orangesfrom Florida complemented by imported summernavels from Australia and South Africa lead the wayfor a full year of navel profits. Clementines withtheir nearly year round availability are importedfrom Chile (mid May — Aug), South Africa (avail-able June-Sept), Morocco and Spain (Oct — Feb).They continue to be very popular with all agesbecause they are easy to peel and virtually seedless.

Specialty items such as Minneolas in the summerfrom Australia and South Africa and

during the winter from Floridaalong with a full line of Tangerines(Fall-glos, Sunburst and Honeys)

can bring even more profits to theline up. And finally, delicious juice

oranges from Florida are availableduring most of the winter season foryour customers who love freshsqueezed orange juice.

Florida and Texas grapefruit offerconsumers the best tasting grapefruitavailable in the world. Peak flavor oftencomes in January and February. Howev-er, fruit is eating well as early as lateOctober to November depending on the

season. Pre-Christmas large sized fruit always seemsto sell better. After the holidays through the cold

78 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEAS

Conduct contests or promotional give-aways to drive traffic and increase sales.

Use child-friendly packaging to attract children to the product while promotinghealthful eating. Mothers will buy fooditems that their children want and that arenutritionally good for them.

winter months, a 3- or 5-pound bag offers a goodvalue and convenient way to take home some vitamin C, and they mix well in fruit salads or for cooking.

The lemon and lime category is growing with anearly year round supply from Mexico, Florida andCalifornia.

PROMOTIONAL/ADVERTISING IDEASPromoting citrus regularly will help boost citrus

sales. Create awareness by designing themed ads(such as National Grapefruit Month) that promotethe variety in season and the benefits of includingfresh citrus into your daily diet. Consumers are look-ing for diversity and there are enough different cit-rus varieties to have a weekly citrus ad with a differ-ent item.

It is important to provide an assortment of pack-aging to maximize your sales. Offer both bulk andbags to appeal to the different consumer segments;some consumers like to pick their own fruit and feelthey are getting value while your convenient orient-ed shoppers find bagged produce appealing.

Since 75% of customers’ buying decisions aremade in the store, in-store sampling is a key way topromote and sell citrus. Sampling stimulates trial,builds awareness, generates a sales lift and increasesrepeat purchasers. Roughly 25% of consumers whosample the product will become buyers.

Focus your promotions during the peak flavorperiods to meet the needs of the consumer by offer-ing good quality tasting fruit to entice them tobecome repeat buyers.

DISPLAYSConsumers today are looking for valued added

information pertaining to the product such as whereit was grown, health benefits, serving suggestionsand nutritional value. It is important to include thisinformation in your signage or POS materials.

DNE WORLD FRUIT SALES1900 Old Dixie Hwy, Fort Pierce, FL 34946Phone: 800-327-6676 Fax: 772-465-1181Website: www.dneworld.com Email: [email protected]

Proper displays are animportant vehicle forincreasing sales. Create avisually pleasing displayof multiple citrus varietiesin season that are wellorganized with informa-tive signage. Always keepdisplays well stocked androtate the fruit throughoutthe display.

CROSS-MERCHANDISING OPPORTUNITIESShowcasing citrus through promotions and

cross-merchandising attracts consumers to the category and maximizes sales. At DNE we offeropportunities to cross merchandise with Ocean Sprayjuices. This not only increases product sold duringthe promotion but also grows both of the categoriesby introducing fresh citrus to the juice consumersand Ocean Spray branded juice to the fresh citrusconsumer. It is a win win situation.

Right after New Year’s it’s a great time to crosspromote the Ocean Spray Grapefruit juices with the 5# bags of Ocean Spray fresh grapefruit eitherfrom Florida or Texas. It’s during the cold and fluseason and kicks off a diet program as well for theNew Year.

Page 79: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 47

Page 80: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSAlways have cucumbers positioned nearboth the bulk salad items and the bagged salad mixes.

Use the rich green color of cucumbers aspart of a color break.

Signage near the fresh-cuts remindingconsumers to add zest to fresh-cut saladmixes boost sales of cucumbers and othersalad ingredients

CUCUMBERS

RECOMMENDED DISPLAY IDEASCucumbers offer an unusual opportunity

because, although the core of the category functions as a high-volume staple item, a basicbuilding block of the salad, other parts of the category function as high-margin specialty items.

The key to maximizing cucumber sales and prof-its is large bulk displays of the basic salad cucumberaccented with special varieties.

Large bulk displays of slicing cucumbers typically should be placed near lettuce and othersalad ingredients. When lettuce prices are high, con-sumer substitution can occur, so extra large and sup-plemental displays may be required as well as carefulattention to restocking of the displays.

The rich green color of the cucumber also makesit a perfect color mate to radishes, carrots and othercolored vegetables.

Although slicing cucumbers traditionally are sold in bulk, film-wrapped packages containing several smaller cucumbers and, more recently, meshbags filled with several cucumbers are often goodsellers. Together they create interest in a familiar staple.

Sales also can be boosted with additional varieties. English/hothouse varieties — elongated,seedless versions of traditional slicing cucumbers —add a note of elegance and interest to the categoryand often support higher margins.

Kirby dills and other varieties can be marketedspecifically for pickling and make a store appear tobe a variety leader. In certain areas they can actually drive consumer store choice.

The growth in fresh-cut has created a doubleopportunity for merchandising cucumbers. First,fresh-cut cucumbers can be included in crudité trays,and packages of cut cucumber can be sold on theirown as a snack.

In addition, retailers have found success with a secondary display near the fresh-cut lettuce packages, often involving cucumbers, tomatoes, peppers, onions and mushrooms, thus remindingconsumers to add ingredients to fresh-cut mixes.

POINT OF PURCHASE/SIGNAGEConsumers may appreciate a quick tip to keep

partially used cucumbers fully wrapped so as toextend the life of the product.

80 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEAS

Demo cucumber cooking ideas such as deep fried cucumber slices served with tangy horseradish sauce or hot mustard.

Showcase a fleet of baked and raw cucumber boats. Show baked ones filledwith melted cheeses or meats. Show rawboats filled with cream cheese or cold sal-ads including tuna salad, egg salad, chick-en salad, lobster salad etc.

Encourage cucumber snacking by sampling cucumber slices right in thedepartment. They are addictive.

Signage near the fresh-cuts reminding con-sumers to add zest to fresh-cut salad mixes boostsales of cucumbers and other salad ingredients.

Pickling cucumbers can be profitably accented with a small reproduction pickle barrelfilled with instructions on pickling.

VARIETY AND AVAILABILITY GUIDEThe U.S. grade system for field grown

cucumbers is as follows: U.S. Fancy, U.S. Extra 1,U.S. 1, U.S. 1 Small, U.S. 1 Large, U.S. 2. However,the trade typically identifies the cucumbers as SuperSelect, Select, Small Super, Small, Large and Plain.These terms do not refer to any USDA grade stan-dard but are common lingo in the industry. Buyersshould be cautious to understand what standardsthey are actually purchasing.

Cucumbers are available year-round. Florida,which produces a majority of the U.S. commercialcucumber crop, ships all year except for a brief lullin summer. Mexico is typically the largest supplysource for cucumbers, with especially heavy importsin winter and spring. Canada produces a significantshare of the English/hothouse cucumbers consumedin the United States. Most states produce cucumbersat some time of the year.

PROMOTIONAL/ADVERTISING IDEASBecause cucumbers can be eaten by themselves,

they make an excellent choice for demos and sam-pling with salad dressings.

The key to promoting cucumbers is to build upconsumption through the three basic usages:

1) Snacking — With weight loss on the minds ofso many, snacking on a cucumber is a great choice.Not only are they better than chips and cookies, butthey also contain fewer calories than a traditionalsnack fruit.

2) Salads — This is the No.1 use for cucumbers.The more interesting salad ideas retailers put out there, the more cucumbers sell.

3) Foods — Cucumbers can be cut up and bread-ed, they can be turned into baked cucumber boatswith selections of cheeses, bread crumbs and pro-teins, etc. Chilled cucumber soup is a summer treat.Remember, ideas spark usage. If you suggest newways to enjoy them, consumers will try the idea.

RIPENESS RECOMMENDATIONS/DISPLAY CARE AND HANDLING

Cucumbers should be maintained at 45° to 50° F.Of particular importance is adequate humidity — 90to 95 percent — as cucumbers can shrivel as a result of moisture loss. Most cucumbers are waxedto retard this loss of moisture. Misting, however, is not recommended for cucumbers, as sitting watercan result in spotting, pitting and even tissue col-lapse.

Generally, attractively shaped, deep green colored, firm feeling cucumbers are the choice ofconsumers. If the cucumber is yellow, it is generallyoverripe.

Cucumbers are sensitive to ethylene and highlysensitive to injury from freezing.

Cross-Merchandising Opportunities• All Salad Items • Bagged Salads• Salad Dressings • Dips

ROSEMONT FARMS2700 N. Military Trail, Suite 410, Boca Raton, FL 33431Tel: 561-999-0200 Fax: 561-999-0241Email: [email protected]

Page 81: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

ROSEMONT FARMSToll Free: 1-877-877-8017

Reader Service # 109

Fanatic about Results!

Locations in: Nogales, AZ • McAllen, TX

Cobden, IL • Fort Worth, TX • Tifton, GAPlant City, FL • Pompano Beach, FL

Boca Raton, FL • Faison, NC

Page 82: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSCreate a prominent fresh-cut vegetablesection. The best place is alongside thesame commodities sold in bulk.

Focus on the category and develop period-ic promotions and display tactics that maxi-mize sales.

Frequent promotions and cross merchan-dising keep fresh cut top of mind and bringnew users to the category.

FRESH-CUT MEAL SOLUTIONS

82 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

selling party tray in the U.S. with 29 percent marketshare.

THE KEY IS FOCUS! One store program that applies periodic display

strategies during peak periods saw volume triple inthe first year, and has seen consistent increasesbetween 20-25 percent annually.

VARIETY AND AVAILABILITY GUIDE Over 40 Eat Smart fresh-cut bags, salads, trays

and salads — including popular dips, dressings andingredients — are available every day, 365 days ayear. New items include 18-ounce value pack med-leys and vegetable-based salads, which offer moreantioxidant power than lettuce-based salads.

RECEIVING AND PREPARATION PROCEDURES

Fresh-cut vegetables should be received fromadequately refrigerated trucks and transferred imme-diately into storage rooms ideally cooled to 33° to38° F. Shelves should be well stocked and productsculled with attention to code date.

CROSS-MERCHANDISING OPPORTUNITIES Promoting fresh-cut vegetables with center-of-

plate items such as poultry or fish helps shoppersquickly identify healthful solutions for their entirefamily. A few key ingredients such as a bag of EatSmart fresh-cut vegetables paired with whole grains,lean meat and spices can open the door to a varietyof custom-tailored meal options. In addition, EatSmart Party Trays complement deli, meat and snackdisplays during peak holidays. Large cross-promo-tional displays featuring barbeque themes, tailgateparties, summer picnics or sporting events will enticeshoppers to pick up all of their supplies for enter-taining in one central location.

Innovative merchandising and cross promotionswith refrigerated dips and dressings or slaws andsalad toppers also keep focus on the category andincrease the opportunity to bring in new users.

APIO, INC.PO Box 727, Guadalupe CA 93434Tel: 800-454-1355Website: www.apioinc.com Email: [email protected]

Apio Inc. is the recognized industry supplier ofvalue-added fresh-cut vegetables and a categorygrowth leader at retail, offering a complete selectionof Eat Smart® brand fresh-cut vegetables in a variety of product sizes and configurations. Whenyour focus is on results, now more than ever, gowith a name you know will outperform the rest.Nationally, Eat Smart sells the fastest and has con-tributed $580 per million of total store sales, exceed-ing our closest competitor by $162 (AC Nielsen Mar-ketTrack data, 52 weeks ending 11/29/08).

SUPERIOR QUALITYAt Apio, we take pride in our extensive quality

assurance and food safety programs. Our food safetyprogram from field to consumer includes post har-vest physiologists on staff, a microbiological lab onpremises, annual third party and retail food safetyquality audits, a complete HACCP program, vendorcertification program, GAP and GMP/ Food SafetyTraining Programs as well as a California LeafyGreens Agreement signatory. Apio also utilizes proprietary Breatheway® modified atmosphere tech-nology. A patented temperature switch featureadjusts membrane permeability to compensate formild fluctuations in the cold chain and extends shelflife naturally by providing ideal package atmosphere.Breatheway helps to reduce shrink and increasesales, as well as provide a better eating experience.

DISPLAY STRATEGIES Creating a prominent fresh-cut vegetable section

within the produce department is a key componentto driving sales in the category. Whether it is a 4-foot vertical, a 4-foot with half, maybe two or threeshelves — whatever quantity of fresh cut productsthat are sold best — it is important to display themseparate from the salad category. Our research hasshown that consumers looking to purchase fresh cut

vegetables don’t look in the same area where baggedsalads are kept. The best place is actually alongsidethe same commodities sold in bulk. Consider eye-catching channel strips or shelf talkers to drawattention. Generate interest with periodic new prod-uct introductions and a variety of sizes — like Apio’snew 18-ounce value pack.

ADVERTISING AND PROMOTIONSTo make the most of peak holiday periods and

special events, display Eat Smart Party Trays nearthe front of the produce section to stimulate incre-mental sales. To maximize impulse “special occa-sion” sales, promote larger format Eat Smart PartyTrays, which are available with beef, turkey andcheese for added variety. Year-round, offer smallerformat trays as a healthful snack item for the office,home or as a “grab and go” alternative to chips andsoda.

Our patented flip tray design, which includes arigid serving base unmatched in both durability andconvenience, has contributed to Apio being the #1

Page 83: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 3

Page 84: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSDisplay and promote the full range of garlic items.

Use jarred and fresh garlic, red, white, elephant and conventional garlic and garlicbraids to make the section intriguing toconsumers.

Focus on increasing usage, as that is thekey to increasing sales long term.

GARLIC

RECOMMENDED DISPLAY IDEASGarlic lies at the confluence of all that is hot and

happening in produce. Ethnic cuisines? Garlic is key.Health-oriented eaters? Garlic is prominent. Dieters?Garlic instead of salt anytime. It also is a productfamily that runs the gamut from staple to specialtyitems — red garlic, elephant garlic, peeled, packaged,braided and certified organic.

It is a category that includes both fresh garlicand various processed and semi-processed items,such as whole peeled garlic, chopped garlic, mincedgarlic and a multitude of jarred products. There areeven garlic options that can serve highly decorativepurposes — such as braided garlic. Garlic can also beused to adorn holiday wreaths and other holidaydecorations. Many items are sold in both bulk andconsumer package sizes.

The key to making good garlic displays is toavoid the specialty jinx in which a small area is setaside for a tiny row, or worse, a little basket of garlic. Instead, think of the romance of garlic: TheEgyptians, Greeks and Romans all knew of garlic,and this rich heritage carries through to the cuisinesof today, justifying generous space with a full rangeof garlic products displayed.

And it is well worth it to cultivate a garlic-buying clientele because garlic is never consumed alone. So every sale of garlic means thesale of other items both in produce and in otherareas of the store.

POINT-OF-PURCHASE/SIGNAGESignage and POP material near garlic should

always have a three-fold message: First, make sureto highlight variety items, such as elephant garlic;this attracts attention to the overall garlic sectionand sparks consumer interest. Second, always highlight the health benefits of garlic: fat-free, saturated fat-free, sodium-free, cholesterol-free andcertified 100 percent organic are all watchwords thatare permissible with garlic and attract the interest ofhealth-oriented consumers. Third, always providerecipes and usage ideas.

Garlic is a product whose sales directly relate toconsumers adopting recipes that require garlic, soalways have one type being promoted. Also remem-

84 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEASHave a demo with the bakery in whichroasted garlic is served with sliced Frenchbaguettes. The mild flavor, without the fatof butter, will make it a favorite with manyconsumers.

Educate your customers about the tastebenefits of rubbing the outside of theirEaster lamb with cracked garlic prior toroasting.

Provide recipes encouraging holiday chefsto insert whole peeled garlic cloves intoslits cut with the point of a sharp knife intotheir holiday roasts prior to cooking. Watchyour garlic (and meat) sales take off!

Do a sauce competition in which con-sumers make homemade pasta sauceusing garlic. Get a local newspaper tojudge it and have the winning saucerecipes be part of a “saucy special.”

ber that a festive arrangement of garlic braids isgreat signage pointing to a garlic display.

VARIETY AND AVAILABILITY GUIDEGarlic is available year-round with supplies

coming from California and outside of the UnitedStates, including Argentina, Mexico, Chile andSpain. In recent years, Chinese-grown garlic hasbecome prominent in the marketplace. Its use as botha seasoning and an ingredient in food means thatyear-round promotion is appropriate.

PROMOTIONAL/ADVERTISING IDEASBecause of its comparatively long storage life,

deep discounts on garlic are likely to steal sales fromfuture periods. As such, the focus in garlic promotion should be on usage.

If it is barbeque season, promote the use of garlicin salads, marinades and rubs. Suggest that con-sumers try cooking whole garlic on the barbeque toserve whole as a butter substitute.

If the Super Bowl or another sporting event iscoming up, do a promotion in which you suggest theuse of fresh garlic to make salsa with a kick.

Salad dressing is a great garlic use. Have a saladdressing of the month that is always under promo-tion and always uses garlic.

Suggest ways that garlic can add flare to oldfavorites. Garlic mashed potatoes, for example, are agreat way to jazz up a dish that may have grownboring.

And at major holidays, suggest adding an ethnicdish. For example, it is an old Italian custom to servea fish dish, almost always prepared with garlic, atmajor holidays. Use the trend to ethnic food, health-ful eating and variety to tie in garlic.

DISPLAY CARE AND HANDLINGGarlic should not be misted, and rotation is

important since fresh garlic sitting out for long periods will tend to dry out. In addition, the skins ofgarlic tend to shed with handling so frequent atten-tion to the display to keep it clean and dry will resultin better sales.

BACKROOM RECEIVING AND PREPARATION PROCEDURES

Garlic should be stored in a cool, well-ventilatedplace and kept dry.

CROSS-MERCHANDISING OPPORTUNITIESGarlic is a cross-merchandiser’s dream as it is

always used in conjunction with other products.Cross-promote in the produce department with saladitems since garlic is frequently tossed into salads asan ingredient as well as used in salad dressing. Putgarlic next to ripe tomatoes, basil, cilantro, etc., topromote salsa. Suggest a make-your-own-pasta-sauce center with garlic, tomatoes and other ingredients.

Also consider secondary displays of garlic nextto meat and poultry to promote as a rub and evennext to baguettes in the bakery, promoting roastedgarlic as a delicious and healthful alternative to but-ter.

MAURICE A. AUERBACH, INC.490 Huyler Street, South Hackensack, NJ 07606Phone: 201-807-9292 Fax: 201-807-9596Website: www.auerpak.com

Page 85: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Fast and Fresh!

At Maurice A. Auerbach, Inc., location is the key to getting produce toyou fast and fresh.

From our South Hackensack location, our network of refrigerated truckscovers the tri-state area. With unsurpassed service to all Northeast arearetailers and distribution centers, we provide the highest quality garlic,asparagus, radicchio, sno peas, ginger root, Belgian endive, shallots andmany other produce specialties.

Maurice A. Auerbach, Inc.490 Huyler Street • South Hackensack, NJ 07606

Call 888-AuerpakPaul Auerbach • Jeff Schwartz • Ian Zimmerman • Bruce Klein • Jim Maguire • Josh Auerbach

Reader Service # 75

Page 86: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSCarry several colors and varieties —green, red, black, seedless and seeded.

Rotate stock frequently for bright, fresh-looking product.

Promote grapes frequently with expanded displays.

Fruit must be kept at proper temperatureto preserve shelf life. Once chilled, keepchilled. The grapes should be kept refrigerated whenever possible.

GRAPES

Grapes are available on a year-round basis.Besides adding bright colors, which help driveimpulse sales, the bottom line is very impressive.From a seasonal standpoint, grapes can generate $96per square foot and are the highest dollars per squarefoot for the produce department’s fruit category forSeptember through December. Moreover, for thesame period, grapes ranked as second highest dollarsper square foot for the produce department. (Source:California Table Grape Commission)

We at Sunlight International Sales are specialists in California Table Grapes. As the marketing arm of Jakov P. Dulcich & Sons LLC, weare growers, packers and shippers of the finest quality and most flavorful grapes in the world.

RECOMMENDED DISPLAY IDEASCalifornia table grapes should be prominently

displayed from Memorial Day through Christmas.Two fundamental goals should always be kept inmind when building a display: quality and abundance. An abundant, fresh, high-quality displaywill generate even greater grape sales. Customers areinclined to buy more grapes from an abundant display. No matter how good the quality of producton display, partially stocked displays will make cus-tomers think they are getting lower quality, leftoverproduct other shoppers did not want. To protect their quality while visually providing a picture ofabundance, grapes should not be stocked more thanone layer high. Fill and maintain the display frequently throughout the day/evening.

POINT-OF-PURCHASE/SIGNAGEPoint-of-purchase materials are used to draw

customer attention to the display and drive impulsepurchase activity. The key to success with point-of-purchase materials is to use the materials to create excitement at the display without takingaway from the image of the produce department.

Signage is yet another call to action for customers to buy more grapes. Nutritional and variety information at the display or in the informational directories in the produce department

86 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

fulfill customer needs while generating increasedsales. With high consumer trust and preference forCalifornia-grown grapes, signage highlighting California provides additional sales opportunities.

VARIETY AND AVAILABILITY GUIDEVariety is the spice of life, and we have plenty of

variety. Jakov P. Dulcich and Sons produces 15 dif-ferent varieties of California Table Grapes, includingtwo new green seedless varieties, Luisco and AutumnKing and two new red seedless varieties, Magentaand Scarlet Royal. All four will be in good produc-tion in 2009. With today’s sophisticated shopper, displaying and promoting a wide range of red, green

and blue-black grapes will generate excitement andsales. Research shows that chains promoting multiplevarieties received a minimum of 200 percent item liftover baseline volume. Try displaying an eye-catch-ing mix of product that generates a greater choice ofproduct availability. Variety, display creativity andfreshness all stimulate impulse purchase behavior.

PROMOTIONAL/ADVERTISING IDEASRed, white and blue for the Fourth of July; back-

to-school with grapes packed in a lunch box forsnacks; festive holiday ideas with recipe cards thatinclude grapes for Thanksgiving, Christmas andEaster. Marketing studies show front page grape adsgenerate a 72 percent increase in volume as opposedto back page placement, which generates only a 20percent increase in volume.

RIPENESS RECOMMENDATIONSGrapes will not mature or gain sweeter flavor

after harvest. We at Sunlight and Dulcich harvestonly fruit that has matured to the optimum flavorand sweetness nature provides.

DISPLAY CARE AND HANDLINGTo maximize sales, straighten grape displays

when passing by to work on other displays. Whenrotating the display, always move older product tothe top and center of the display. Whenever low orpoor quality product is found, it should be removed.When product on display begins to look tired,remove or rework the product to maintain a freshquality image and maximize profitability.

Refrigerated displays will extend the shelf life ofgrapes. Cool temperatures will prevent grapes fromdrying out.

BACKROOM RECEIVING ANDPREPARATION PROCEDURES

Never wash grapes in preparation for display.The natural protective layer created by the grapes,called bloom, will be removed, allowing for dehydration or water loss to occur. While water maybe refreshing for some produce, it will harm grapes.Always store with other fruits that require cold tem-peratures. Grapes should be kept at 34° F and highhumidity. Never store grapes next to onions or otheritems that emit strong odors.

CROSS-MERCHANDISING OPPORTUNITIES1. Wine, cheese and crackers.2. Whipped cream and gelatin.

Sunlight International SalesP.O. Box 1027, Delano, CA 93216Phone: 661-792-6360 Fax: 661-792-9070Website: www.dulcich.com Email: [email protected]

Page 87: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 70

Page 88: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSMerchandise basil with tomatoes, especially larger size packages.

Don’t get basil too cold — it is best at 50° F.

Order more basil — it is 40 percent of thecategory. And don’t run out — check your stores in the evening, especially on Sunday. No basil = lost opportunity.

HERBS

Fresh specialty produce is one of today’s hottesttrends, and fresh herbs are at the forefront of thisgrowth. Produce trends follow public awareness created by celebrity chefs and TV cooking shows,along with national food and home magazines. Thistrend to fresh flavors, coupled with the desire forquick flavors that are not high in sugar or fat, makethe fresh herb section a destination for both homechefs and soccer moms who want to prepare healthful, flavorful food quickly.

Top quality fresh herbs, then, can be the decisioncriteria for store choice for these “fresh” customerswho are called the “best produce customers.” Theyare called this because:

1) They buy more fresh produce than any othercustomer;

2) They buy more high-margin specialty itemsthan any other customer.

RECOMMENDED DISPLAY IDEASFresh herbs do well prominently displayed in

high traffic areas near other specialty produceincluding exotic mushrooms and specialty peppers.They can be displayed on multi-deck case shelving,on pegs or in specially designed display racks.

A secondary display of basil in the tomato section will help maximize the sales of the category’sNo. 1 item.

POINT-OF-PURCHASE/SIGNAGEHerbThyme Farms provides Herb Center header

88 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEASBuild a display with larger basil clamshells(2- to 4-ounce) or our new extended shelf-life 2.5-ounce basil shippers, withpine nuts and garlic for a pesto feature. A$10 to $15 ring! And it won’t take away from other produce purchases, so it is allnew money!

Promote fresh herbs as a way to “MakeHome Cooking Fancy” or as a restaurantalternative. Provide recipe ideas or cross-merchandising displays to help customersunderstand how to use different freshherbs.

signs to make the fresh herb section clearly visible toconsumers. HerbThyme also provides educationalHow to Use Herbs multifold handouts designed bothto educate the first-time buyer and to encourageexisting users to try additional varieties.

VARIETY AND AVAILABILITY GUIDEHerbThyme Farms operates over 500 acres and

over 3 million square feet of greenhouse ranges, all in California. We deliver a year-round supply ofall major varieties of fresh culinary herbs both conventionally and organically grown.

HerbThyme offers a full variety of merchandisingvehicles including clamshells in .66-, 1-, 2-, 2.5-, 3-and 4-ounce sizes, along with bunches, sleeves,

foodservice packs and new Organic Fresh HerbTubes. Additionally, we offer 12 varieties of seasonal promotional shippers.

PROMOTIONAL/ADVERTISING IDEASFresh Herbs are an ideal Basket Builder for retail-

ers in today’s economy. Fewer trips to restaurantsbring retailers opportunities to build sustainablebusiness by offering customers fresh flavors on acook-at-home budget. We suggest a “Make YourHome Cooking Fancy” theme to use fresh herbs as across merchandising vehicle to add restaurant flavorsto the back to basics retail trend.

We recommend quarterly full- line promotionsand promoting basil with expanded tomato sectionsin the summer. Additionally we offer seasonal in-and-out shippers to generate excitement for thecategory and incremental sales for your bottom line.

Our display shipper offerings range from SalsaBlend shippers for Super Bowl to Rosemary Skewersshippers for summer holidays to Poultry Bouquetand Holiday Assortment shippers for the Thanksgiv-ing and Christmas seasons.

DISPLAY CARE AND HANDLINGBasil does not like temperatures below 40° F so

merchandise away from direct cold air. Build a secondary basil display with the tomatoes, especiallyfor larger value-pack and jumbo-pack basil offerings.

BACKROOM RECEIVING AND PREPStore basil at 50° F, other herbs in the cooler.

CROSS-MERCHANDISING OPPORTUNITIESCross-merchandising opportunities are endless.

Cross-merchandise basil with tomatoes, dill withseafood, rosemary with potatoes, rosemary skewersat the meat counter and Poultry Bouquet with theturkeys or stuffing ingredients. Our 12 varieties ofseasonal shippers include recipes designed to moveadditional produce items.

HERBTHYME FARMS1575 W. Walnut Parkway, Compton, CA 90220Tel: 831-476-9733 Fax: 831-476-3710Website: www.herbthyme.com Email: [email protected]

Page 89: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 9

Page 90: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSThe prime location for our Live Gourmetbutter lettuce is directly next to iceberg lettuce in the leafy green section of yourproduce display.

Place and reface frequently; with theclamshell package, daily trimming andproduct refreshing will be nominal.

HYDROPONICALLY GROWN LIVING BUTTER LETTUCE

Since 1996, Live Gourmet brand hydroponicallygrown living butter lettuce has offered an improvedcategory solution for innovative produce merchandisers across America. With its extendedshelf-life and protective, interlocking, and easilymerchandisable clamshell package, Live Gourmetbutter lettuce has saved hours of labor, significantlyreduced shrink and generated higher dollar rings,creating increased gross margins for the butter lettuce category.

Live Gourmet butter lettuce is “Absolutely Freshbecause it is still Alive!”

By harvesting our butter lettuce with its rootsintact, we provide each delectable leaf with a sourceof nutrition after harvest, helping the leaf remainfresher and more flavorful for days longer than butter lettuce harvested in the conventional manner.Fresher lettuce means higher flavor profiles andgreater nutritional value, which generates higher levels of consumer satisfaction and helps driveincreased purchase frequency.

Our lettuce is pest free naturally as we utilizeintegrated pest management (IPM) regimes — a natural, more ecologically sound pest controlmethod. IPM incorporates naturally occurring pestregulators and beneficial predatory insects thatreduce harmful insect populations in the growingenvironment. No organophosphates or carbamatepesticides are ever used.

The Live Gourmet clamshell packaging concept— we like to call it a mini-greenhouse — provides amicro-environment around the lettuce helping it stayfresher longer. The clamshell protects each delicateleaf from physical damage during handling and actsas a food-safety barrier between the product and theconsumer, an area of increased interest for manyconsumers.

The clamshell’s interlocking feature aids in easeof maintaining a presentable, attractive display onyour produce section shelf. Just place and replenishthe facings daily. Our clamshells are made from post-consumer recyclables and are Level-1 recyclable, a very important feature for most oftoday’s shoppers.

90 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEASBe the first in your region to offer a greenhouse-grown section in your producedepartment. Merchandise greenhouse-grown lettuce, cucumbers, tomatoes, bellpeppers and herbs in one central location.

Stress the benefits of controlled environment growing, uniform quality andreduced pesticide use to generate cross-selling and up-selling of your producedepartment shoppers.

Live Gourmet Advantages:• Absolutely fresh because it’s still alive!• Consistent uniform product quality

all year-round• Pest free naturally • Extended shelf-life and reduced shrink that

helps you sell more units• Attractive, see-through and easily

merchandisable packaging

RECOMMENDED DISPLAY IDEASLive Gourmet butter lettuce is truly a value-

added offering and can be merchandised successfullyin several locations within the produce section ofyour store. Refrigerated free-standing island displays,end-cap displays and second- and third-level shelving above the wet rack can prove to be excellent merchandising zones, depending upon yourstore’s produce department configuration.

Our research suggests the prime location for ourLive Gourmet butter lettuce is directly next to iceberg lettuce in the leafy green section of yourproduce display. This requires closing of the wet-rackmist system nozzle directly above our product display, thereby eliminating unattractive water spotson the container.

We find that merchandising the product in thebagged salad case is often the area of last resort, andit may lead to buyer confusion. The bagged salad

shopper is looking for tear-and-pour convenience,and our product requires processing before use. Inevery instance, eye-level multiple facings that createattractive displays help generate increased salesvelocity for our product.

CROSS-MERCHANDISING OPPORTUNITIESCombining offers with other salad ingredients —

from croutons to gourmet cheeses and salad dressings — can help acquaint your shoppers withthis uniquely fresh butter lettuce.

Promoting your private-label salad dressing inconjunction with our butter lettuce is a great way togenerate increased velocity for both categories. Interdepartmental cross-promotional offers, such asa BLT promotion that offers the ingredients for abacon, lettuce and tomato sandwich, can drive trafficto several areas throughout your store.

Use of cents-off coupons for ingredients locatedat displays of the corresponding items can be used to draw your meat department shopper into yourproduce section and bakery goods section of thestore.

RECEIVING, STORAGE AND HANDLING TIPSMaintain the cold chain at all times and observe

suggested temperature ranges to extend the product’sshelf-life.

Inspect all shipping cartons for the enjoy-by-date or best-if-used-by date and maintain properproduct rotation in the storage cooler and on thestore shelf.

Visually inspect each clamshell during placementon the shelf to insure your display is the very best itcan be.

BACKROOM RECEIVING AND PREPARATION PROCEDURE

Observe the enjoy-by-date stamped on eachpackage and maintain a proper rotation to insuremaximum value for your customer.

Place and reface frequently; with the clamshellpackage, daily trimming and product refreshing willbe nominal.

HOLLANDIA PRODUCEP.O. Box 1327, Carpinteria, CA 93014Tel: 805-684-8739 Fax: 805-684-9363Website: www.livegourmet.com Email: [email protected]

Page 91: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 44

Page 92: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

KIWIFRUIT

RECOMMENDED DISPLAY IDEASMore consumers are concerned with the health

benefits of the food their families eat. Promoting theimpressive nutritional benefits of kiwifruit willencourage first-time consumers to purchase andincrease sales to already established consumers.

Displaying kiwifruit as a “SuperFood” that hasone of the highest nutrient densities of the majorfruits will push sales. Featuring the nutritional valueof kiwifruit (vitamin C, folate, potassium, fiber,carotenoids, polyphenols, chlorophyll, glutathione,pectin and vitamin E) compared to its low-caloriecontent will place kiwifruit at the top of the shop-ping list. Allowing consumers to choose among bulk,clamshells and bagged kiwifruit is a great way todrive increased sales. One can also increase sales bymerchandising ripe or near-ripe kiwifruit and by dis-playing two sizes of kiwifruit.

Kiwifruit sell best when positioned with main-stream seasonal fruits in a high traffic area. Howev-er, caution must be followed when placing kiwifruitnext to bananas and apples as the ethylene emittedfrom these fruit causes kiwifruit to ripen quickly.Likewise, shelf life can be extended when placednext to tree fruit, grapes and citrus.

POINT-OF-PURCHASE/SIGNAGEKiwifruit are best promoted when consumers see

the inside of the fruit. Play up the eye appeal of theinside by cutting a few kiwifruit in half, sealing withplastic wrap and scattering the halves throughout thekiwifruit display.

Signage should promote the health and nutri-tional benefits of kiwifruit. In addition, make sure

92 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

QUICK TIPSFeature ripe kiwifruit to encourage purchase.

Build bigger displays in high traffic areasand feature multiple pricing.

Advertise: Sales of kiwifruit increase asmuch as three times when advertised.

Display kiwifruit with Dr. Steven Pratt’slatest book, SuperFoods Healthstyle.

Promote specials throughout the year.Kiwifruit is plentiful all year, and is alsoavailable in gold and organic.

For more sales market kiwifruit by the pound

the consumers see placards showing the ease of cut-ting and scooping the fruit.

Since gold and organic kiwifruit are relativelynew to the category, signage drawing attention tothese varieties should also be displayed near thefruit.

VARIETY AND AVAILABILITY Kiwifruit is available year-round. Cal-King green

and organic kiwifruit is available from Octoberthrough May, and Chile and New Zealand green,gold and organic kiwifruit are available Aprilthrough November.

PROMOTIONAL/ADVERTISING IDEASThough kiwifruit have been readily available in

North America for many years, there are still someconsumers who have never tried one. Efforts shouldalways be made to get consumers to try the fruit andexperience its unique taste. Sampling and multiplepricing (three and four for $1) will encourage trialand purchase with consumers. You can sell morekiwifruit by selling by the pound.

In addition, consumers need constant remindersof the convenience, versatility and nutrition/healthbenefits of kiwifruit.

Since kiwifruit are a year-round item, there aremany opportunities to tie kiwifruit in to holidays byproviding recipes and positioning the multiple vari-eties near fruit dips and seasonal fruit.

RIPENESS RECOMMENDATIONSEarly season kiwifruit should be pre-ripened or

“triggered” at shipping point or in the receiver’s

ripening room. Kiwifruit are ripe when they yield togentle pressure. Use pre-ripened or “triggered”kiwifruit for early season sales.

Cal-King conventional and organic kiwifruithave been picked and packed based on Californiaand New Zealand research and recommendations tofully assure consumer acceptance.

Gold kiwifruit arrive ready to eat and requiregentle handling. For best results, rotate all kiwifruitoften. Storage at 32°F will give optimum storage life.Warmer temperatures will hasten ripening.

DISPLAY CARE AND HANDLINGWhen refilling displays, take care in assuring

proper rotation of fruit (place new fruit on bottom).Remove shriveled fruit and maintain a neat andfresh display.

BACKROOM RECEIVING AND PREPARATION PROCEDURES

Store firm-to-ripe kiwifruit at 32°F to maintainmaximum storage life. Firm kiwifruit can be storedat room temperature to hasten ripening.

Do not mist on display. Spots of dry mold can bewiped off, but discard fruit with wet spots. Unripekiwifruit are ethylene-sensitive and ripe fruit is anethylene-producer.

CROSS-MERCHANDISING OPPORTUNITIESCross-merchandise with other “SuperFoods” such

as apples, blueberries, avocados, oranges or pome-granates. Locate secondary displays of kiwifruit nearprecut salads and fruit dips.

OTHER SUGGESTIONSNutrition: Kiwifruit is a nutrition powerhouse,

packed with phytonutrients that contribute to ahealthy heart and help in the fight against cancer.

CAL HARVEST MARKETING INC. 8700 Fargo Avenue, Hanford, CA 93230Tel: 559-582-4000 Fax: 559-582-0683Website: www.CalHarvest.com Email: [email protected]

Page 93: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 67

“Cal-King", being the oldest continuously used label of kiwifruit, represents one the largest kiwifruit growers in California.

This label is marketed by Cal Harvest Marketing, Inc., a family-owned farming and marketing organization that has been

at the fore-front of the kiwifruit industry in California since the 1970’s. This kiwifruit has been grown, picked and packed

with care and pride for over 30 years. And as your customers start asking about food safety and the environment, you can

assure them that Cal-King kiwifruit is safe and has one of the lowest carbon footprints of any kiwifruit sold in North America.

The label is now available in both conventional and organic styles. Cal Harvest also markets kiwifruit from Chile and New

Zealand to assure you have a high quality, year-round source of kiwifruit.

For information contact: Donna Fagundes • [email protected] • John Fagundes • [email protected]: 559-582-4000 • Fax: 559-582-0683 • www.CalHarvest.com

Page 94: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

LEAFY GREENS

RECOMMENDATION OF DISPLAY ITEMSThe sales of leafy greens can be increased by

spotlighting their wonderful nutritional value andutilization ideas. Since today’s consumers are morehealth conscious, the sales potential of greens will behigher particularly if nutritious ideas are displayedalong with the greens. Also it is good to point outthat greens are available 12 months out of the yearfor healthy eating.

These can be in the form of recipe cards and/orpictures. Whet consumer’s taste buds by displayingtantalizing pictures or colorful recipes cards in closeproximity to the greens. Also it is good to displaydifferent colored vegetables, making the exhibit verycolorful; for example, placing colorful (red and yel-low) peppers next to the greens.

Another good idea is to rotate the bunch andloose greens to attract customers. The difference willattract consumers, resulting in higher sales.

POINT OF PURCHASE/SIGNAGEColorful signs depicting the fantastic nutritional

value of greens will draw attention to these deliciousproducts. Today’s consumers are geared toward get-ting the healthiest product in the produce sectionand catchy, colorful signs featuring the great nutri-tional value of greens would be a great way to getthe message across. Coupled with tasty, healthyrecipes and beautiful pictures of finished products,these signs would further convey the important mes-sage of good nutrition which is a major focus oftoday’s consumer.

VARIETY AND AVAILABILITY GUIDEValue-added Nature’s Greens and Rawl Brand

bulk greens are available throughout the year. Origi-nally greens were only available during the fall andwinter seasons; however, with the emphasis onhealthy eating resulting in a higher demand fromconsumers, these excellent products are available alltwelve months. They are definitely good and goodfor our health!

ADVERTISING/PROMOTIONAL IDEASSpotlight leafy greens by featuring both basic

94 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEASServe sautéed greens on yellow stoneground grits or pasta for a tasty idea.

Use greens as one of the vegetables insoups and stews.

Since greens are packed full of good nutri-ents, encourage children to enjoy them.

Serve collards that have been cooked inchicken broth, then stir fried with garlic,onion, and bell pepper. Sprinkle with a littlesalt, black pepper, and sugar; toss andserve.

and unusual ways to use them. Because of their ver-satility, greens can be used with various other ingre-dients to create interesting, tasty snack ideas, sidedishes, soups, and salads. Consumers’ interests willbe sparked when featuring tasty ideas on coloredrecipe cards. (Some recommended colors are brightyellow, lime green, and light purple — when therecipes are printed in black on these cards, they arevery easy to read.)

Every month of the year, different utilizationideas can be featured to tie in with health, goodtaste, and availability. The Southern folklore statesthat by enjoying greens with black-eyed peas onNew Year’s Day, one will be prosperous with goodluck during the year.

In-store promotions are a very good way tointerest consumers since everyone is looking for newrecipes. Both the great aroma and the samples fea-tured will result in consumer interest and potentialadded sales since recipes are a welcomed addition tomost kitchens. A win-win situation will be created ifthe consumer likes the samples and takes a recipe.

Celebrations on a national, regional, and locallevel are perfect times to promote and market greens.Suggested times are New Year’s Day, National Nutri-tion Month (March), St, Patrick’s Day (March 17th),and National Cholesterol Education Month (Septem-ber). Also a great time to promote greens is duringFebruary since this is Heart Month and greens defi-nitely are heart-healthy foods making them perfectfor heart-healthy menus.

DISPLAY CARE AND HANDLING Greens are very sensitive to moisture loss; there-

fore, moisture is crucial to bulk greens. Temperaturesfrom 34 degrees to 36 degrees Fahrenheit are theabsolute best temperatures for keeping greens. Also,misting is very detrimental on packaged greens;therefore, do not mist packaged greens. Good air-flow and the recommended temperatures are veryimportant for increasing shelf life.

Make sure the PLU tags are readable for con-sumers when culling displays and make sure thatstems/leaves showing any off colors such as yellowor brown are trimmed.

BACKROOM RECEIVING AND PREPARATION PROCEDURES

The temperature of 34 degrees Fahrenheit needsto be maintained immediately after receiving greens.Since ethylene gas causes discoloration in greens,close proximity to this gas should be avoided at alltimes. For restoring greens, a good suggestion is thefirst in, first out (FIFO) method. Also it is a good ideato check backroom products often for proper rota-tion.

CROSS-MERCHANDISING OPPORTUNITIESAn excellent idea to promote leafy greens is to

feature them with other items such as red and yellowbell peppers, garlic, and onion for stir frying. Cross-merchandising by promoting good health is anexcellent way to promote greens since good health isforemost in all consumers’ minds.

Another great idea is to use a mustard green leafrather than an iceberg lettuce leaf to garnish a veg-etable tray or on a grilled meat sandwich.

WALTER P. RAWL AND SONS, INC.824 Fairview Rd, Pelion, SC 29123Tel: 803-894-1900 Fax: 803-894-1945Website: www.rawl.net

QUICK TIPSLook for FRESHNESS in the bag! TheseNature’s Greens are fresh, delicious, andeasy to prepare. These already cut andtripled washed greens make preparation asnap!

Nature’s Greens are very good for the heartsince they contain extremely little fat andno cholesterol.

The versatility of Nature’s Greens hasexpanded! Traditionally prepared withwater and some type of meat, these highlynutritious vegetables make tasty soups,salads, entrées, pasta dishes, hors d’oeu-vres, and dips.

Visit our website at www.rawl.net for sometasty ways to prepare our Nature’s Greens.

Page 95: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 59

Page 96: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

LIGHT-SKINNED AVOCADOS, SLIMCADOS

INCREASE AVOCADO CATEGORY SALES WITH SLIMCADOS

It’s the green-skinned avocado from SouthernFlorida with less fat and fewer calories.*

The SlimCado’s large size complements your current avocado offering, grabbing attention fromthe value-conscious customer and even the dieter – normally an infrequent visitor in the avocado aisle. Don’t forget your Hispanic shopper,who will appreciate having a wider selection of afavorite fruit.

What avocado aficionado wasn’t thrilled to hearthat avocados contain ‘good’ fat? Still doctors sug-gest even ‘good’ fat be eaten in moderation (70 calo-ries a day). Those 70 calories go much further withSlimCados. SlimCado’s distinctive light avocado tastecan be added to:

• Green salads — morsels of SlimCados whentossed in make each forkful more delectable.

• Hot soups — cold cubes of these avocadosfloating on the top push the soup’s zest appealover the top.

• Chunky guacamole — mashed, SlimCadosbecome the party favorite of the buffet table.

• Sandwiches or hamburgers – diced into sandwich spreads or sliced thin to top the feast,these green-skinned avocados make baggedlunches hard to beat.

• SlimCado bowls — cut in half and filled withyour favorite seafood salad, SlimCados give anew meaning to dishing it out.

• And finally, there’s the simple joy of a Floridaavocado cut in half with just a squeeze of limeon top and eaten with a spoon.

So it’s official, avocados aren’t just for parties.Any meal can be made into a little celebration withSlimCados. Besides being lower in fat and calories,the Florida avocado is also rich in vitamin A, high inpotassium and cholesterol free. SlimCados are notgenetically modified — they come by these charac-teristics naturally.

PROMOTIONAL/ADVERTISING IDEASMake a big splash in mid-July to kick off the

SlimCado season. Look for promotional volumes of12-count fruit in July and 10-count in August — justin time for chopping up into salads that make theiryearly debut during summer barbeques.

Play up how SlimCados add gusto to the

96 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

guacamole, hamburgers and salads of tailgate parties. The Florida avocado’s tropical taste goes wellwith autumn’s typical fare.

And for traditional holiday dinners, SlimCadosmake a healthy alternative side dish for those special meals.

DISPLAY CARE AND HANDLINGDisplay enough to sell in one day, roughly 15 to

30 pieces (depending on the traffic in your store).When replenishing, rotate any leftover day-old fruitto the front. Remember, avocados are sensitive toethylene.

OPTIMUM SHELF LIFEBrooks’ Continuous Cold Chain® keeps

SlimCados at their best from the field to your store.The first link in the chain is the hydro-cooling that isdone immediately after harvesting. Hydro-coolingtakes the tropical heat out while keeping the fruit’sfreshness in. The chain continues with these green-skinned avocados being stored in dedicated coolersset at optimum temperature and humidity levels. Thefinal link is the refrigerated loading docks that allowSlimCados to be shipped to your store at optimumfreshness.

As the largest grower, packer and shipper of

green-skinned avocados, Brooks Tropicals has a rep-utation for delivering this fruit with the best in shelflife. SlimCados have approximately a 4-day shelf lifewith the fruit being ready to eat for another one totwo days.

BACKROOM RECEIVING AND PREPARATION PROCEDURES

Store SlimCados by keeping their environmentcool and humid, between 42° and 48° F. Do not storebelow 40° F. Optimum humidity is between 85 percent and 95 percent.

SlimCados are UPC/PLU coded and boxed inflats, doubles and bruces.

RECOMMENDED DISPLAY IDEASAdd SlimCados to your avocado section and give

your customers a choice of great avocado tastes. Butdon’t stop there. Place SlimCados near other saladingredients. These green-skinned avocados makedelicious sense in salads. When the avocados are displayed near bagged salads, your shoppers have aquick and easy way to make their salads special.

When you’re rounding up ingredients for yourguacamole display, make sure to include SlimCadosfor a fresh-tasting guacamole.

Merchandise Florida avocados targeting yourSouth and Central American customers. This is theavocado of choice for many Hispanic dishes.

VARIETY AND AVAILABILITYAvailable July though February, Florida

avocados are generally pear shaped and greenskinned. Their weight can vary from 14 ounces to ahefty 34 ounces. The avocado will vary in size fromfour to 12 inches long and up to six inches wide.

*50% less fat and 35% fewer calories than theleading California avocado.

SlimCado, Continuous Cold Chain and the BrooksTropicals logo are registered trademarks of BrooksTropicals, LLC.

BROOKS TROPICALS18400 SW 256th Street, Homestead, FL 33090Toll free: 800-327-4833 Fax: 305-246-5827Website: www.brookstropicals.com • www.brookstropicals.com/chefscorner

QUICK TIPSMake sure customers know the SlimCadostays green as it ripens. To determineripeness, give it a squeeze and if it gives a little, it’s ready to eat.

Keep SlimCados cool but not cold. To ripen,keep them at room temperature. Communi-cate this to your customers as well.

Retail customers and culinary professionalscan find great recipes and tips at Chef’s Corner on the Brooks Tropicals Web site.

Download a one page factsheet with moreinformation about merchandising, storing anddisplaying at www.brookstropical.com/fact-sheets

OUT-OF-THE-BOXPROMOTIONAL IDEASThink big displays at the beginning of the season. SlimCado aficionados wait for itsarrival. As the season progresses, createsmall multiple displays to cross-merchandisewith bagged salads and guacamole ingredients.

Remember the SlimCado in mid-July; the 12-count is available in promotional volumes. It’sa great spark for summer produce sales. InAugust, ask about promotional volumes forthe 10-count.

For a handy pocket care guide for SlimCado® Avocados, e-mail [email protected].

Page 97: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 33

Page 98: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSFamiliarize produce staff with mangos,including their maturity process and handling instructions. They in turn will bebetter prepared to help answer customers’questions.

POS signage (ripeness charts, cutting diagrams, nutritional content) are useful for encouraging sales and educating consumers about the fruit.

Sampling is one of the most effective waysto encourage impulse purchases. Providecustomers with ready-to-eat mango slicesor cubes on toothpicks and have a demon-strator show them different ways to cutand eat the fruit.

MANGOS

Mangos, the most consumed fruit in the world,are an important dietary staple across many culturesworldwide. Known for their mouth-watering taste,culinary versatility and nutritional benefits, mangosare an important category because of their increas-ing sales potential. Consumption of fresh mangos inthe U.S. has near doubled in the last ten years, andwill continue to augment, partly as a result ofchanging demographics, and as a result of increasedconsumer awareness along with collaborative indus-try promotional efforts.

MERCHANDISING AND DISPLAY IDEASTo help bolster sales at the retail level, we

recommend setting up large, eye-catching displaysto showcase the fruit. By the same token, retailersshould take time to educate consumers on how toselect, handle and consume mangos. This can beachieved through POS material, such as ripeningguides and cutting diagrams. Sampling fruit on traysis also an effective way of helping consumersbecome familiar with the fruit and encourage pur-chases.

Produce managers can also mix up their displaysby merchandising mangos using a wider assortmentof varieties, sizes and fruit that is in varying stagesof the ripening process. Offering ripe, ready-to-eatfruit plays an important role for customers whodon’t want to wait for the fruit to mature, and forthose who have not tried a mango before and wouldbenefit from an in-store sample. Repeat purchasesare more likely to occur if consumers experience asoft, sweet, ripe fruit the first time they try it.

VARIETY AND AVAILABILITY GUIDEAvailable year-round, mangos are primarily sup-

plied to the U.S. by Mexico, with increasing importsfrom Peru, Ecuador, Brazil, Guatemala and Haiti.Though there are hundreds of mango varieties in theworld, the U.S. primarily markets these varieties:

— Ataulfo (February - August): This smaller,kidney-shape variety is a deep golden yellow whenripe, and has an intensely sweet taste. Only the finestAtaulfo is marketed in the U.S. under the Cham-pagne® mango label, which has a velvety texturedue to minimal fiber and a small pit.

— Haden (February - June): This larger fruit hasan oval-round shape and has a firm texture with

98 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

slightly more fiber. Its skin develops a red blushwith some yellow when ripe.

— Tommy Atkins (March - July): This varietyhas a more oblong, oval shape and has a moderatelyfibrous texture. The skin develops a deep red blushwith some green areas.

— Kent (June - September): Slightly larger,these mangos have green skin with a slight hint of ared blush. They have a sweet flavor with mild fiber.

— Keitt (June - October): This oval-shaped fruithas green skin with a hint of a rosy blush. It has aflavorful aroma and smooth texture.

PROMOTIONAL/ADVERTISING IDEASThere is mango availability in many varieties all

year long, creating untapped promotional opportuni-ties for retailers. The fruit can be promoted as a keyingredient during the spring and summer months foruse in salsa and guacamole recipes, or as a differenttake on glaze for barbequing fish and chicken in thefall. Mangos are also a great addition to frozendrinks, including fruit smoothies for the family, ormango mojitos and daiquiris for when you are enter-taining.

By displaying appealing, easy-to-prepare recipes

alongside mango displays, retailers can help per-suade customers to purchase the fruit. Mangos arevery versatile. They are a scrumptious and whole-some snack eaten alone, and they are a great com-plement to fresh salads, main entrees, and tastydesserts any time of year. For photos and recipeideas, please visit www.champagnemango.com.

RIPENESS RECOMMENDATIONS:Mangos are very firm when green, and gradually

soften as they become more mature. Allow them toripen at room temperature to help them achieve opti-mal maturity and sweetness. To accelerate theprocess, display them with other ethylene-producingitems such as avocados, tomatoes and honeydewmelons. Retailers should know that their customerscan speed up a mango’s ripening process at home byplacing the fruit in a sealed paper bag and letting itsit at room temperature until it yields slightly whengiven a gentle squeeze.

A mango is ripe if it feels soft when you gentlypress your fingers on it, and if a sweet-smellingscent emanates from the stem-end of the fruit.Unlike bananas, color is not the best indicator ofripeness for mangos because some varieties do notchange color and stay green, even when fullymature. Among the varieties more prone to colorchange are Haden, whose smooth green skin turns asoft yellow with a rosy blush, and Ataulfo, whichturns from a lime green to a deep golden yellowwhen fully mature.

DISPLAY CARE AND HANDLINGIt is important that produce managers know how

to handle mangos on the back end, to prolong shelflife and to uphold the integrity of the fruit. Mangosare best stored at temperatures between 50 – 55degrees Fahrenheit. Anything lower makes mangossusceptible to chilling injury. Mangos do not requiremisting, and their typical shelf life is 7 to 14 days onaverage.

Relative Humidity: 85-90 %Primary Box Size: 5 KgPackage Counts: 8-14 ct (Red and Green varieties)

12-20 ct (Ataulfo variety)

OTHER PROMOTIONAL OPPORTUNITIESAcross supermarkets, mangos are frequently pro-

moted in multiples. However, there are many oppor-tunities in promoting mangos using a variety ofpackaging. Retailers can also promote mangos inboxes. Traditional casing is one way of setting updisplays, yet retailers may opt for more innovativepackaging options like plastic clamshells or smallerboxes scanned with barcodes at the register. Boxpromotions are gaining favor because they allowretailers to display more information about the fruit,its handling, and consumption ideas on the packag-ing itself.

P.O. Box 1476, Tubac, AZ 85646Tel: 520-281-9696 Fax: 520-281-1473Website: www.cirulibrothers.com • www.champagnemango.com • www.iloveeggplant.comEmail: [email protected]

Page 100: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSKeep mushrooms refrigerated and dry.

Promote mushrooms consistently year-round and particularly throughout the summer. Deep discounts are not necessary. In-store promos help, too.

Utilize multi-item advertising highlighting all category segments.

Merchandise based on department sales and consumer demographics. Use sampling, educational info and recipes toencourage trial, repeat purchase and todrive sales. Definitely add a second displayof sliced mushroom packages in the saladsection.

MUSHROOMS

RECOMMENDED DISPLAY IDEASResearch shows that sales can increase up to 40

percent by grouping all varieties together, providingproper space allocation and positioning mushroomsnext to the salad section. Demographics play animportant role in determining space allocation.Exceptional departments can allocate 32-plus linearfeet for mushrooms in the multi-deck case, or 4-8foot shelves; larger departments should allocate 24 to28 linear feet; smaller departments with lower incomeshoppers should allocate 16 linear feet; lastly, storeswith small departments and higher income shoppersshould allocate 20 to 24 linear feet for mushrooms.

SECONDARY DISPLAYSBecause of the versatility of fresh mushrooms,

secondary displays are effective in bringing mealsolutions to the mind of the consumer. On-going sec-ondary displays in the salad case and the meat casewill generate 12 percent growth in category sales. Inaddition, seasonal displays can be utilized to featureeggs, potatoes, rice, pasta, tortillas, cheese, onionsand other cooking vegetables. Organic, natural, anddiet meal solutions are other ideas that are effectivewith mushrooms.

POINT OF PURCHASE/SIGNAGEAttention brought to the category through use of

section signage, recipe cards, shelf talkers (on usage,selection, care & handling) will drive sales. Mush-room consumption will grow only if consumersbecome more educated on usage and benefits, such asmushrooms’ contribution to nutrition and weightmanagement. Most stores carry 15 to 25varieties/package types; so consumer education aboutwhat to do with various types of mushrooms isimportant.

CROSS-MERCHANDISING OPPORTUNITIESMeal solutions can easily be achieved year-round

by cross-promoting sliced mushrooms with baggedsalads and capitalizing on grilling opportunities withsteaks, stir-frys and shish kabobs on the grill. Steak-Mate thick sliced mushrooms are outstanding dis-played in the meat section, as are portabellas duringgrilling season. Substitution of portabellas as a meat-

100 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEASPromote and merchandise Monterey’sSunBella® Grill-A-Bella mushrooms in thehigh profile biodegradable tray. Provides100 percent daily requirement of Vitamin Dfor consumer health benefits.

Sell bulk Portabellas by the unit versuspound — sales increase up to 300 percent.

Merchandise Monterey’s SunBella® SlicedMushrooms in the new “Resealable Bag”on pegs for maximum visibility near thebagged salad section, to increase yoursales and expand your profits.

less alternative is also very popular. Mushrooms arean ideal item to utilize as a flavor enhancer and com-plementary ingredient in pastas, soups, eggs, rice,casseroles or pizza.

VARIETY AND AVAILABILITY GUIDEMaintaining a full variety of white, portabellas,

specialty, and dried mushrooms will help drive sales!Practice maximum assortment, which includes a vari-ety of whole, packaged, sliced, portabellas, organics,Baby Pearls and value-added, specialty mushrooms,dried and bulk. Look for new varieties, such as Mon-terey’s new SunBella® Grill-A-Bella, and SunBella®sliced whites and browns that provide Vitamin Dbenefits for the consumer. Since mushrooms areavailable throughout the year, it is important thatthey continue to be well displayed and promoted,especially when you consider the average mushroomdollar ring is over two dollars, and mushrooms gen-erate over $60 in sales per square foot display space.

PROMOTIONAL/ADVERTISING IDEASMushrooms are an impulse buy and need promo-

tion activity to help bring new shoppers to the cate-

gory. However, they are not price-sensitive, so deepdiscounts are not necessary. On average, promotionsshould be utilized six to eight times per quarter tomaximize overall sales. Discounts should generally bebetween 20 to 33 percent. Two-for-$X, or multiplepricing, tends to be the most effective method of pro-moting mushrooms. Research shows that multiple-item ads in the mushroom category generate the mostvolume and profit for the category.

Feature advertising should be utilized once perquarter to highlight mushrooms. It is important tonote that mushrooms sell well during the holidaysand that promotions would be more wisely spent dur-ing non-holiday weeks. In other words, do not dis-count mushrooms during the holidays.

RIPENESS RECOMMENDATIONMushrooms are highly susceptible to breakdown

and should be refrigerated upon receipt. On average,mushrooms have a shelf life of 6 to 8 days; thereforeit is critical that backroom inventory be kept to aminimum. It is important to note that mushroomsgain more flavor as they age, so white mushroomswith a tinge of brown can still be sold as fresh.Brown and specialty varieties usually have an extraday or two in shelf life.

DISPLAY CARE AND HANDLINGMushrooms must be displayed and stored

between 32 to 36 degrees, 85 to 90 percent humidity.For every five-degree increase in temperature, mush-rooms lose a day of shelf life. Due to their high per-ishability, mushrooms should never be stacked morethan two high. Rotate product properly. It is also crit-ical to circulate air ventilation for mushrooms as theyare one of produce’s most perishable items.

RECEIVING, STORAGE AND HANDLING TIPSTo manage shrink effectively, holding coolers

should carry minimal overstock. Avoid out-of-stocks.Plan accordingly for promotions and feature ads.Refrigerate mushrooms immediately. Additionally,store mushrooms up high and off moist floors, awayfrom warm doorways, out of direct airflow and awayfrom odorous perishable items.

MONTEREY MUSHROOMS260 Westgate Drive, Watsonville, CA 95076Tel: 831-763-5300 Fax: 831-763-0700Website: www.montereymushrooms.com

Page 101: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 27

Page 102: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSPromotional materials and recipe cardsshould tout Idaho-Eastern Oregon Onions as great raw, on burgers and for cooking.

In-store sampling and co-op advertisingdrive retail sales and product awareness.

Don’t forget: “The bigger the better.”

ONIONS

RECOMMENDED DISPLAY IDEASIdaho-Eastern Oregon Onions are versatile

onions that may be used at any meal or in anyfavorite onion recipe. The appeal of Idaho-EasternOregon Onions is their golden globe shape and theirremarkably mild flavor. Idaho-Eastern OregonOnions retain their texture when cooked, adding fla-vor and consistency to any dish.

When it comes to displaying Idaho-Eastern Ore-gon Onions, we say, “The bigger, the better.” The big-ger and more dramatic you can make your displays,the better your sales will be.

Good signage that distinguishes the differentvarieties and versatility of onions will go a long wayin increasing sales. Full-color Idaho-Eastern OregonOnion price cards will make the display evenstronger.

POINT-OF-PURCHASE /SIGNAGEMake quick-idea recipes available near the onion

section to encourage impulse purchases. To help consumers decide which onion to pur-

chase, display an Idaho-Eastern Oregon Onion sizingchart and poster next to the onions. For example,large-size onions reduce preparation timewhile their firm flesh makes them idealfor blooms, ringing,slicing and dicing.

102 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEASOnions are one of the most frequently usedingredients in recipes around the world.The onion-shaped cookbook titled OnionsMake the Meal celebrates the worldwidepopularity of onions with more than 100recipes featuring Idaho-Eastern OregonOnions. Copies of the book are available for$10, which includes shipping and handling.Try placing samples of the cookbook nearthe onion display to let your customersknow about the many ways to use onions. Contact the Idaho-Eastern Oregon OnionCommittee for more details.

VARIETY AND AVAILABILITY GUIDEIdaho-Eastern Oregon Onions are available in

yellow, red and white varieties. Harvest begins inAugust with onion availability lasting from Augustthrough March.

During the growing season, the Idaho and Eastern Oregon Onion region provides from 35 to 40percent of the bulb onions consumed in the UnitedStates.

PROMOTIONAL/ADVERTISINGIDEAS

Want to increase profits inyour produce department? Justfeature Idaho-Eastern Oregon

Onions. Well-tested research showsan average volume gain of 221 percentwhen Idaho-Eastern Oregon Spanish

Onions are featured in retail advertising.And further, Spanish Onions maintain an

average gross profit of 31 percent even when fea-tured at a special price. (Other produce items usuallysacrifice one- to two-thirds of their gross profit whenfeatured.) In fact, onions are one of the highest profitmargin items in the store.

In-store sampling and co-op advertising driveretail sales and product awareness. The aroma ofonion rings sampled in the produce department is

sure to draw a crowd. Contact the Idaho-EasternOregon Onion Committee office to learn about thepromotional opportunities for your store.

DISPLAY CARE AND HANDLINGIdaho-Eastern Oregon Onions are known for

their long shelf life. You can increase profitability byreducing shrink if you follow these simple steps:

• Onions should be kept dry and unrefrigeratedat retail. Good air circulation is critical foronions.

• Keep product rotated and remove separatedand loose skins from the display bin.

BACKROOM RECEIVING AND PREPARATION PROCEDURES

When onions are received, they should be placedone foot away from the wall for proper air circula-tion. Air circulation is crucial for long-term storageof onions.

Remember not to use plastic pallet wrap ononions in storage, as the plastic wrap limits airmovement.

Onions should be kept cool and dry, ideally at34° to 45° F with about 65 to 70 percent humidity.

Onions should not be stored with other producethat gives off moisture, such as potatoes.

CROSS-MERCHANDISING OPPORTUNITIESPrecut onion blooms filled with a variety of cut

produce could be offered in microwavable containersfor take-and-bake onion blooms.

In addition, try cross-merchandising onions inthe meat department. Idaho-Eastern Oregon Onionsare the perfect size for topping hamburgers, andking-size onion rings will just naturally have yourcustomers thinking steak for dinner. For summer, trymerchandising onions along with barbeque sauces tosuggest a perfect outdoor grilling accompaniment.

Salad tie-ins have proven successful, too. Display onions right next to other salad ingredi-

ents and see how they help sell more of your otherproduce items.

IDAHO-EASTERN OREGON ONION COMMITTEEP.O. Box 909, Parma, ID 83660Tel: 208-722-5111 Fax: 208-722-6582Website: www.BIGONIONS.com

Page 103: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 26

Page 104: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

ORGANIC FRUIT

RECOMMENDED DISPLAY IDEASThe key to a successful organic apple display is

to create a true “organic section”. This section shouldbe a destination within your department where all ofyour organic produce items are displayed together.Apples are naturally bright and beautiful and colorplays an important role in merchandising as consumers buy with their eyes first and foremost.The most effective way to use color within yourorganic department is to group all of your applestogether using the varieties themselves to make thecolor breaks. First impressions are everything, sokeep displays neat, attractive and full of high-qualityapples.

POINT OF PURCHASE/SIGNAGEBecause organic produce is typically displayed

within its own section, it is vital that you have effec-tive signage designating the organic area of yourproduce department. Ideally there would be a largebright colored banner over the organic section. Inaddition, the banner would have a brief explanationof organic agriculture. Information and education

are crucial to enhancing organic sales.Organic Point of Sale material

(POS) should be easy to distin-guish from your conventionalPOS material with the word“Organic” being very prominent.

It’s important to supplement yourmerchandising efforts with attrac-

OUT-OF-THE-BOXPROMOTIONAL IDEASDid you know adding apples to your dietcan help you lose weight? One applebefore each main meal is an effective andhealthy way to lose weight by increasinghydration, reducing appetite and increas-ing fiber.

Hold “apple tastings” or “Flights of Apples”events at which different varieties are sam-pled like fine wines. Find your favoriteapple!

tive, informative POS materials including, signage,usage charts, and recipes. The more customersunderstand flavor differences and recommendeduses, the more they will buy. CMI carries a variety oforganic POS materials that will help educate the customer understand flavor differences and usages.

VARIETY AND AVAILABILITY GUIDECMI organic apples have excellent availability

with domestic organics being available from Augustthrough April and imported organics available uponrequest over the summer months. CMI has developeda 3 X 5 pocket card designed to fit in the pocket ofthe produce clerk which includes the CMI sweet totart meter, taste profiles and suggested usages.

PROMOTIONAL/ADVERTISING IDEASThe most effective promotional strategy for your

organic section is to regularly advertise that youcarry these items and that your store is a destinationpoint for organic produce. Consumers are seekingout organics more than ever before. Promote organics in print and in store by advertising organicsas often as possible as features or liner ads as a supplement to conventional apples.

CMI has developed an Organic Farm Stand Binto help create a Farm Fresh look for consumers. TheFarm Stand bin is the size of a two-thirds bin and isa fully contained module that includes everything toassemble the Farm Stand — including 10 cases offresh organic apples.

RIPENESS RECOMMENDATIONSApples ripen 10 times faster at 70 degrees than at

32 degrees, and five times faster at 40 degrees. Theideal storage temperature is 32 to 34 degrees. So ifpossible, sell apples from a refrigerated display ifspace permits and keep the air flow moving. If not,don’t put out any more than you can rotate and sell

COLUMBIA MARKETING INTERNATIONAL (CMI)PO Box 3361, Wenatchee WA 98807Tel: 509-888-3418 Fax: 509-888-0401Website: www.cmiapples.com Email: [email protected]

QUICK TIPSShow it off! Build organic displays frontand center.

Make it Big! Carry several varieties oforganic apples.

Shout about it! Use colorful boxes and POSmaterials to draw attention and help educate consumers about the benefits ofeating organic.

Take Care of it! Refrigerate to maintainquality.

104 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

in a timely fashion. The general rule is no more thanthree days without refrigeration.

DISPLAY CARE AND HANDLINGApples are easily bruised, especially the

thin-skinned varieties, so be gentle. Whether they arein trays, bags, or loose, proper handling and rotationreduces bruises and blemishes and is the key to highapple profits and customer satisfaction. Throughoutthe day the display should be culled for freshness andquality. Organic consumers will consistently shopyour store for organics if you have removed fruit that has bruises, stem punctures and blemishes. Usebins, baskets and trays that have been designated for organic product only. Consumers should be able to easily identify the organic section and buy withconfidence.

BACKROOM RECEIVING AND PREPARATION PROCEDURES

Keep organic fruit separated from non-organicfruit. Designate a specific part of the cooler and storage area for organic produce storage and keepyour apples in refrigeration at all times. In order tokeep apples crisp and juicy, the cold chain should notbe broken. Avoid misting apples or using high-temperature lighting and consistently sort, culland rotate to keep displays fresh. Proper rotation procedures both in the back room and on display arecrucial to maintaining the quality and freshness ofyour organic apple display.

CMI organics are shipped in colorful eye-catchingboxes that will help identify the apples as organic. In addition, the apples are stickered with a colorfulscannable DataBar sticker that helps the consumerand the checker identify the apple as organic andprevents them from being rung up as conventionalfruit at the register.

CROSS-MERCHANDISING OPPORTUNITIESOrganic apples make a perfect promo item with

cheese and grapes for cheese trays. Apples arebecoming a common ingredient in salsa, green salads, stir fry as well as in smoothies and juice.

Page 105: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 40

Page 106: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

ORGANIC VEGETABLES

Recommended Display IdeasThe key to a successful organic vegetable display

(as well as an effective organic category display ingeneral) is to create an organic section within yourproduce department, a place where all of yourorganic produce items are displayed together. Typi-cally this organic section is a 6-foot or larger uprightcooler designated solely for organic produce sales.This section will be most effective when promoted bya large, prominent banner over the display case anddeclaring your organic section.

In displaying the organic vegetables within yourorganic section, the key factor is product selection.Rather than attempting to squeeze as many items aspossible into a relatively small space, be selective inthe vegetable items you choose. What’s important isthat your shoppers have an opportunity to create anice organic salad, make a tasty casserole or puttogether their favorite organic stir-fry. The most pop-ular-selling lettuces, salad greens and cooking veg-etables are usually the best choices.

Despite having a limited space for display-mak-ing, it’s important that your organic vegetable dis-plays reflect the same abundance and creativity that

go into merchandising the otheritems throughout your depart-

ment. If you do not have aseparate section for yourorganic vegetables (ororganic produce in gen-eral), it is important tomake sure you complywith the National Organic

Standards in yourdisplay-making, partic-ularly with regard to

“product commingling”(mixing organic and conven-

tional items).

QUICK TIPSCreate an organic section within your produce department.

Secure a copy of the USDA’s NationalOrganic Standards for reference.

Have a visible organic banner hanging over your organic section.

Point-Of-Purchase/SignageBecause your organic produce (and therefore

your organic vegetable items) are typically displayedwithin their own section, it is vital to have effectivesignage that designates the organic area of your pro-duce department. Ideally there would be a large ban-ner over the organic product case announcing thisarea as your organic section.

In addition, the banner would have a brief expla-nation of organic agriculture.

Information and education are crucial to enhanc-ing organic sales.

The organic POS signage should be easy to dis-tinguish from your regular-style POS signs with theword organic being very prominent. The organicsigns work best when a different color scheme isused to differentiate them from your regular signage.All products labeled on your signs as “organic” mustbe certified by a USDA-accredited certifying agency.

Variety And Availability GuideOrganic vegetables are available year-round.

During the peak of their season, you can sourceexcellent product from local and regional areas aswell as from the primary growing regions.

Promotion/Advertising IdeasThe most effective promotional strategy for

organic vegetables is to regularly advertise that youcarry these items and that your store is a destinationpoint for organic produce.

September is National Organic Harvest Month,and it is an excellent time to have promotional saleson organic items. An often-used strategy during thistime is to discount all organic items for the entiremonth a certain percentage, such as 10 percent.

Earth Day in April is also an excellent opportuni-ty for promoting organic produce. Your organicshoppers will look to this day as a time of celebra-tion and feasting.

Display Care And HandlingThink of your organic produce section as a mini

produce department, displaying all of your vegeta-bles together and keeping your wet vegetables sepa-rate from your vegetables that need no regularhydration.

Backroom Receiving And Preparation Procedures

It is necessary to be in compliance with theNational Organic Standards for both prepping andstoring organic vegetables.

When prepping organic lettuces and greens, youmust have a clean sink (using cleaners approved bythe National Organic Standards) as well as freshwater that is used only for prepping organic product.

When storing organic vegetables, it is ideal tohave a separate area for storage. Avoid situationswhere you have iced and hydrated conventional andorganic items commingling.

Cross-Merchandising OpportunitiesNon-produce items that complement organic

vegetables can be very effective when cross-mer-chandised in your organic section.

Such items as organic salad dressings for saladsor organic sauces for vegetable stir-fries can workquite well.

Other SuggestionsAlbert’s Organics is proud to recommend the

Organic Produce College. Founded on over 25 yearsof successful retail organic produce experience, ourprogram focuses on the unique needs of organic produce operations and merchandising. We offerProduce College as a free service to the natural foodsstore community, as well as to our mass market customers.

With the organic market growing rapidly, ourprogram focuses on the unique needs of organic produce operations and merchandising. It is our fondwish that this learning will contribute in some wayto the profitable growth of organic produce sales andconsumption.

Please visit www.albertsorganics.com to learnabout Organic Produce College.

ALBERT’S ORGANICS200 Eagle Court, Bridgeport, NJ 08014Phone: 1-800-899-5944 Fax: 856-241-9676Website: www.albertsorganics.com Email: [email protected]

106 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

Page 107: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 2

Page 108: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

PAPAYAS, CARIBBEAN RED AND CARIBBEAN SUNRISE

RECOMMENDED DISPLAY IDEASDisplay papayas as whole fruit as well as cut in

half and shrink-wrapped. Use both methods simulta-neously for increased sales.

Cutting a ripe papaya lengthwise shows customers that it might have green on the outsidebut inside the fruit is red, juicy and ready to eat.Demonstrate that the papaya can be eaten by thespoonful or cut up for salads, salsas or smoothies.Increase overall sales by selling it as an edible bowlfilled with other fruits, yogurt or salads.

Whole papayas, when displayed with other tropical produce, make for a colorful, unique andinteresting display, piquing the curiosity of new consumers. Generate excitement by displaying alarge number of papayas — 15 or more pieces ofCaribbean Red and 30 of Caribbean Sunrise.

Maximize your papaya sales by selling both.Your customers will appreciate having the choiceand may factor in value or convenience when shopping.

Keep an eye on your papaya display. Be quick tosort out any fruit that is less than cosmetically-appealing. This fruit is still great tasting, so chop itup to add a tropical taste to prepared fruit salads orblend into fabulous smoothies or as Hispanics callthem - batidas.

108 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

POINT-OF-PURCHASE/SIGNAGEBrooks Tropicals provides placards and tear-off

pads for your produce department. The placards provide details on the papayas’ origin, taste, color,availability, size and quality, as well as preparationand storage tips and nutritional information.

VARIETY AND AVAILABILITY GUIDEBrooks Tropicals is the exclusive grower of

Caribbean Red and Caribbean Sunrise papayas,which are available year-round.

PROMOTIONAL/ADVERTISING IDEASBrooks Tropicals actively works to increase con-

sumer awareness. We work with food editors, TVproducers and celebrity chefs to promote the benefitsof including papayas in healthful diets. Our Web site(the URL, brookstropicals.com, is on our label) is afavorite go-to spot for answers on papayas.

RIPENESS RECOMMENDATIONSCaribbean Red and Caribbean Sunrise papayas

are ripe starting at 50 percent color break. If the fruitgives when gently squeezed, it’s ready to eat

BACKROOM RECEIVING AND PREPARATION PROCEDURES

Caribbean Red and Caribbean Sunrise papayascan be stored at 42° to 58° F to minimize ripening.Storing them at higher temperatures will speed the ripening process. Storing at 40° or below for prolonged periods may cause injury to the fruit.

DISPLAY CARE AND HANDLINGPapayas have soft skins, so they are delicate

when ripe. Stack up to two or three deep. If usingwicker baskets (uneven bottoms and sides), provide alayer of protection between the wicker and the fruit.Do not mist papayas. Keep at room temperature.Caribbean Red papayas have a shelf life of two tofive days depending on ripeness; Caribbean Sunrise,three to seven days.

CROSS-MERCHANDISING OPPORTUNITIESDon’t fence these papayas in. Occasionally dis-

play outside the tropical produce section by group-ing with other popular recipe ingredients, such assalsas or fruit salads. Display a cut-in-half papayawith lime wedges and a plastic spoon in the meals-to-go section.

BROOKS TROPICALS18400 SW 256th Street, Homestead, FL 33090Toll free: 800-327-4833 Fax: 305-246-5827Website: www.brookstropicals.com • www.brookstropicals.com/chefscorner

OUT-OF-THE-BOXPROMOTIONAL IDEASSalad bars take on tropical flair withchopped papayas ready-to-go. A little signage can tempt first time eaters pavingthe way to additional whole fruit sales inthe produce aisle. Don’t stop there, makechopped papayas a part of ready-to-gofruit salads. Salad bars and fruit salads areeasy and effective ways to use great tasting papayas that are past their visual prime.

For a salad to go, cut a papaya in half andfill with mixed berries. Overwrap and display for a grab-and-go meal.

Build a salsa ingredients display includingthe tasty papaya. Show how easily an exotic tropical salad can come together bygrouping papayas and other tropical fruits.Suggest using a tropical-flavored yogurtinstead of mayonnaise.

QUICK TIPSCaribbean Red and Caribbean Sunrisepapayas have an abundance of vitaminsand contain papain, an enzyme that aidsdigestion. For more nutritional informationgo to www.brookstropicals.com.

Sprinkle fresh lime juice over cut papayasto preserve the fruit’s naturally bright flesh.

Retail customers and culinary profession-als can find great recipes and tips at Chef’sCorner on the Brooks Tropicals Web site.

Page 109: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 32

Page 110: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

PEARS

AMERICA’S PEAR SEASON STARTS IN CALIFORNIA

California kick-starts the summer pear seasonwith promotable volumes of Sunsprites, Red Pears,Boscs and category-leading Bartletts. Starting inJuly, fresh, new crop Bartletts drive category perfor-mance, contributing 67.4 percent of total categorysales! Fresh, new crop Bartletts available in Julyshould be the number one pear on your shelf for thebig summer months of July and August. Make themost of this profitable opportunity by following afew simple, proven guidelines:

CONDITION FOR COLORThree out of four consumers prefer Bartletts with

“more yellow, less green.” So make sure yourBartletts receive proper conditioning and handling.Treated pears to “breaking” stage generate an aver-age of 18 percent greater sales than non-treatedgreen Bartletts — the more golden the skin, the moregolden your opportunity for optimum sales!

110 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

CALIFORNIA PEAR ADVISORY BOARD1521 “I” Street, Sacramento, CA 95814Tel: 916-441-0432 Fax: 916-446-1063Website:www.calpear.com Email: [email protected]

FEATURE WITH THE FLAVORS OF SUMMERMost consumers consider the Bartlett to be a

“summer pear.” Capitalize on that connection by dis-playing Bartletts alongside tree fruits during Julyand August. Retailers displaying Bartletts next totree fruit instead of apples enjoyed an 11 percentincrease in sales during the summer!

STAY PROFITABLE FROM SUMMER TO FALL!California pears are available far beyond summer

Bartlett season, with varieties like Bosc, Comice,Seckel, Forelle and Red pears. Extend your sales sea-son by letting these varieties ride on the popularityof the Bartlett. Retailers displaying other varietieswith their Bartletts keep consumers interested in thepear category and enjoy a 14 percent increase insales!

Start in California — stay in California — withresources from California Pears!

Page 111: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 37

Page 112: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSKeep pineapple displays fully stocked and fresh.

Offer both whole and pre-cut pineapple forincreased sales.

Use signage emphasizing health/nutritioninformation and preparation suggestions.

Promote pineapple frequently.

Demo pineapples frequently to stimulateimpulse sales.

PINEAPPLES

RECOMMENDED DISPLAY IDEASFresh whole pineapple should be displayed in a

manner that both capitalizes on its strong visualappeal and maximizes consumer impulse purchases.Increasing the size of the pineapple display rarely, ifever, has a detrimental effect on sales of other fruitsin the department. This fact further underscores theimportance of maintaining a large, well-stocked dis-play of fresh, high quality pineapple. Additionally,cored and peeled pineapple offers the consumer theopportunity to see the flesh of the fruit prior to pur-chasing and also cuts down preparation time. Effec-tive pineapple merchandising entails offering a goodmix of cored and whole product.

PRICINGPineapple pricing at retail is usually determined

by a combination of market conditions and the grossmargin objectives of the particular retailer. Themajority of fresh whole pineapple is sold on a perunit basis, with typical pricing averaging $3.99 -$5.99 per unit. A smaller percentage of fruit is soldby the pound, with the average retail price per poundfluctuating within the $1.99 - $2.49 per lb. range.

POINT OF PURCHASE/SIGNAGEValuable consumer information can be transmit-

ted via informative P.O.S. materials. Some importantfocal points include: (1) nutritional benefits of freshpineapple, (2) recipe/serving suggestions, (3) rela-tionship of shell-color to taste attributes, i.e., pineap-ple with relatively higher shell color will not neces-sarily be sweeter or exhibit the ideal brix, acidity,and translucency mix.

VARIETYTurbana’s pineapple program consists entirely of

Fyffes Gold and Pirates of the Caribbean label supersweet pineapples. This variety has gradually takenon an almost generic trade moniker of “MD2” or“golden” pineapple. While the smooth cayenne isstill the most widely planted pineapple, other vari-eties such as Sugarloaf, Pernambuco, Red Spanish,and Queen are also commercially cultivated.

112 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

PROMOTIONAL ADVERTISING IDEASThe exotic, tropical persona of fresh pineapple

provides a limitless amount of advertising and pro-motional opportunities. Pineapple can be promotedas a stand-alone item emphasizing nutrition andhealth and fitness, or featured as an ingredient incakes, pies, cookies, various Polynesian and AsianDishes, and smoothies. Retailers participating in Tur-bana’s Pirates of the Caribbean program also haveaccess to a full range of Disney oriented promotionalthemes.

RIPENESS RECOMMENDATIONSFyffes Gold and Pirates of the Caribbean label

super sweet pineapples are harvested when brix,acidity, and translucency are all exhibiting levelsthat ensure the consumer the optimum taste experi-ence. Fyffes specifications on these criteria are con-sistent regardless of the fruit’s exterior shell color, sothere is never a need to worry about whether yourFyffes pineapple is “ripe” or not.

DISPLAY CARE AND HANDLINGPrior to retail display, pineapples should be

TURBANA BANANA CORP.550 Biltmore Way, Suite 730, Coral Gables, FL 33134Tel: 305-445-1542 Fax: 305-443-8908Website: www.turbana.com Email: [email protected]

OUT-OF-THE-BOXPROMOTIONAL IDEASPineapple has always had somewhat of an exotic persona that evokes images oftropical locales, blue sky and water, andadventure. For those retailers utilizing ourPirates of the Caribbean label, thoseimages offer an excellent platform for contests, sweepstakes and tie-in advertising in their print circulars and/ornewspaper ads.

stored at an ambient temperature between 48 and55° F. Pineapple are quite odor sensitive, so do notstore or transport pineapples in a proximity to odorproducing items such a peppers and onions. Freshpineapples make their best visual impact when displayed upright or laid down with crowns facingoutward. To minimize bruising, do not display thefruit more than 2 to 3 layers deep.

CROSS MERCHANDISING IDEASA great way to attract attention to pineapples is

to make them the main attraction in a tropical dis-play featuring items such as coconuts, mangos andpapayas. Pineapples and bananas are another excel-lent tie-in. Cross promotional activities with otherDisney Garden items are also available to thoseretailers participating in a Pirates of the Caribbeanpineapple program.

Page 113: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 45

Page 114: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

PLANTAINS

RECOMMENDED DISPLAY IDEASTo appeal to everyday shoppers, it is important

to keep the display full, well maintained and in avisible area of the produce section. This is importantfor two reasons. First, many shoppers who consumeplantains are of ethnic origin, and they look forgood quality. If they see a plantain display that isunappealing, they may decide to purchase theirplantains at an ethnic or other store. Secondly,mainstream American shoppers may be interested intrying new products for variety if they look appeal-ing. A great display with adequate padding will def-initely spark their interest.

Another key element, which can double sales, isto implement a two-color program by displayingboth green and ripe plantains together. Many ethnicshoppers eat plantains when they are in the greenstage, when the plantain has a starchy quality, andalso in the dark stage, when the plantain is muchsweeter.

PRICINGIt has been proven that plantain sales increase

when they are priced at a quantity sold by the dollarinstead of by the pound (i.e., 4/$1). Since plantainsare purchased largely by ethnic shoppers, such asHispanics, many are not completely familiar with aper-pound pricing structure because they use themetric system.

POINT-OF-PURCHASE / SIGNAGEAt the display, it is important to include signage

and POS material. Turbana offers our customersleaflets with helpful information, which includes adescription of the plantain in its various stages andhow to store it. We also offer an array of recipes formainstream Americans who are interested in sam-pling them. It is important to educate mainstreamAmericans on how to prepare the plantain becausethey have an overwhelmingly positive response oncethey realize how easy and delicious they are!

Turbana also offers bilingual signage, whichincludes a description of the plantain and its nutri-tional content in both English and Spanish. It is

114 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

advantageous to offer bilingual signage at the dis-play, because many shoppers who eat plantains areHispanic and seeing their own language in yourstore will help them to feel welcome and create loy-alty among this important growing population.

VARIETYTurbana Corporation produces the Harton plan-

tain variety exclusively because it provides the bestmarket flexibility. It is the unique variety that can bemerchandised in both its green and ripened stages.

PROMOTIONAL/ADVERTISING IDEASSince plantains are in demand among ethnic

populations, there may be an untapped potentialaround stores, depending on the demographics. Forstores with high numbers of Hispanic households,advertising in Spanish through local Hispanic mediaor targeted flyers would have a tremendous impact.Another important way to advertise is through thelocal Spanish radio stations and cable TV. Turbanacan help you with your advertising needs in Spanish.

RIPENESS RECOMMENDATIONSDifferent from the banana, the plantain can be

TURBANA BANANA CORP.550 Biltmore Way, Suite 730, Coral Gables, FL 33134Tel: 305-445-1542 Fax: 305-443-8908Website: www.turbana.com Email: [email protected]

QUICK TIPSPlantains should always be cooked,never eaten raw.

Keep plantain display full and well maintained.

For increased sales, display both green and ripe plantains.

Price plantains in unit pricing.

Use bilingual signage around display.

prepared and enjoyed at many stages in the ripeningprocess. This versatility is why most consumerswould like to see them offered in both the green andripened stages. By presenting the consumer plantainsin their different stages of ripeness, not only willyour shelf life of this product increase dramaticallybut your sales will also double.

Unlike the banana, plantains are grown with theintention of being cooked in every stage of ripeness,from green to yellow to black. The riper it is, thesweeter the taste. The reason for the change in tasteis that the plantain goes through a series of bio-chemical reactions as it ripens, which is an ongoingprocess of converting starches to sugars. For exam-ple, the green plantain can be enjoyed as a substituteto the potato and may be prepared in the same ways.The riper plantain can be prepared as a sweeter sidedish or a delightful dessert.

DISPLAY CARE AND HANDLINGStore plantains at an ambient temperature

between 47° and 50° F, away from freezer and load-ing dock doors.

Use original cardboard cartons to transport fruitto display area to minimize handling.

Plantains should be displayed on padded shelvesto avoid scarring and/or bruising. Display both greenand ripened plantains; studies have shown largeincreases in sales when both green and ripe plan-tains are available to consumers.

CROSS-MERCHANDISING OPPORTUNITIESPlantains are most commonly consumed with

black beans and rice among Hispanic populationsthat consume plantains, so putting black beans andrice around the display would make good businesssense.

To appeal to mainstream Americans, placehoney, whipped cream, chocolate or other fruit withthe display to encourage sweet dessert ideas.

Page 115: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 46

Page 116: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSDon’t succumb to the holiday pressure.Promote potatoes prominently at Thanksgiving, Christmas and Easter but do not discount more than 20 percent offretail. Even consumers who don’t eat themregularly are buying potatoes for their holiday meals. You are leaving money onthe table by deep discounting an item consumers will be purchasing anyway.

66 percent of the U.S. consists of one andtwo-person households. Ensure that youare carrying smaller offerings like 1.5# and3# bags, clamshells or tray packs that meetthe needs of smaller households.

POTATOES

The United States Potato Board (USPB) is commit-ted to creating a consumer-driven potato category thatwill drive sales and profits throughout the supplychain. The first step is to fully understand the con-sumer and use that information to create a categorythat makes it easy for shoppers to say “yes” to pota-toes. Next, apply the proven category best practicesand watch sales grow.

RECOMMENDED DISPLAY IDEAS Consumers are as time-starved as ever. Trips to the

store are shorter and more frequent. Consumer researchhas shown that merchandising all potatoes together, inone location, helps the consumer shop the category.

Consumers say they shop the category by type(variety) and use, (i.e., russets for baking to serve withsteaks). By merchandising each variety together on thetable, placing bag next to bulk, the shoppers haveevery offering of that variety in front of them to aidtheir decision.

Placing the promoted potato item in the front of the department negates the need to visit the potatotable; shoppers don’t see all the offerings and try something new.

POINT OF PURCHASE/SIGNAGE There is a vital need to communicate the nutrition-

al value of potatoes to consumers, particularly in theaftermath of the low-carb diet craze. If you are seriousabout creating a consumer-driven potato category,educational point of sale is the silent sales person youcan’t afford to do without and has proven to increasesales.

A new opportunity exists for the industry to unifyefforts and have a significant impact with consumersby rallying around the new “Potatoes…GoodnessUnearthed™” campaign. This campaign is based onextensive consumer research to identify the right mes-sage that will reach the target consumer in the mosteffective and meaningful way.

USPB is advertising September 2008 - March 2009in food lifestyle, women’s service, health and parentingtype publications. The media plan will generate 90.3million impressions and reach 45 percent of the targetaudience, or approximately 35.6 million adults. Thefirst ad made a powerful debut in the September issueof Southern Living, proven by a reader survey measur-ing advertising effectiveness: 21 percent of readers

116 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

reported a more favorable opinion of potatoes afterseeing the ad and a record 66 percent reported pur-chasing or planning to purchase potatoes after seeing the ad (13points higher than the average advertiser for this measurement)!

Leverage this ad buy by reinforcing the ads at thepotato table with newly created POP available from the USPB. This creative will STOP consumers in theirtracks, HOLD their attention by providing new infor-mation about potatoes; specifically it will debunk anynegative nutrition myths that may have existed aboutpotatoes and CLOSE the sale with its motivational mes-saging.

VARIETY AND AVAILABILITY GUIDE Retail data analysis clearly shows that retailers

who carry a broad selection of potatoes in each seg-ment had higher dollars and volume than retailers withpartial segmentation. Why? The specialty and premiumsegments generate incremental volume sales and profitdollars. Offering a high-end potato alternative indemographic-appropriate stores shows your chain ison the leading edge of variety offerings that createconsumer interest.

PROMOTIONAL/ADVERTISING IDEAS In 2008, a promotional analysis was conducted on

behalf of the USPB (refreshed from the 2006 report) toinclude 16 national retailers, using the latest 104 weeksof data ending May 31, 2008 for a total of 1,114 pro-motional events used in the analysis. Promotional per-formance was evaluated on item and category volumeand dollar impact. This analysis identifies optimumdiscount levels, promotional frequencies, promotionprice types, number of items, promotional item mixand packaging mix. To make the analysis more robustand understand the impact of promotions on retailergross profit, cost data analysis was included using asubset of six of the 16 retailers. A full report is avail-able by contacting the USPB, but key takeawaysinclude:

• Promote 9 to 10 times per quarter • On average, discount potatoes by less than 25

percent when on promotion • Include bagged potatoes in each promotion • Feature multiple potato subcategories in the same

promotion; include Mainstream potatoes with

other subcategories • Include multiple potato items in the same

promotion • Feature multiple potato varieties in the same

promotion • When promoting organic potatoes, include

conventional potatoes • Include the “X FOR” (e.g. 2 for $5) price in

potato promotions • Vary whether multiple potato items are

featured on the same circular page or on different circular pages based on objectives.

DISPLAY CARE AND HANDLING Greening has become the most significant quality

issue as reported by consumers. In recent consumerintercepts 23 percent of consumers stated they will shyaway from the potato table entirely and not purchasepotatoes that day if they see green potatoes on thetable. Another 70 percent say they will purchase a dif-ferent variety of potato if their variety of choice hasgreening bags on the table.

Additional research has shown that standard in-store lighting will green potatoes on the display in oneto two days. Ensure you are offering your shopper thebest quality possible by following these simple tips:

• Do not wet rack potatoes. Misting potatoes caus-es them to break down and shrink more quicklythan dry potatoes on the table.

• Refrigeration turns potato starches to sugar caus-ing the potato flesh to turn black when cooked.

• Lighting on the wet rack is closer to the productand causes them to green even faster than thoseon the dry table.

• Turn directional or track lights away from shining directly on the potato table.

• Examine your space-to-sales ratio when any segment of the category is shrinking.

• If you do nothing else, check the bag and bulkdisplays daily and remove all greening potatoes.

CROSS-MERCHANDISING OPPORTUNITIES Keeping all fresh potato items together in the

produce department is key. However, tests of cross-merchandising a small display of fresh potatoes in themeat department increased the category’s net volumeby a whopping 35 percent!

U.S. POTATO BOARD7555 E. Hampden Ave Ste 492, Denver CO 80231Tel: 303-873-2312 Fax: 303-369-7718Website: www.potatogoodness.com Email: [email protected]

Page 117: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 41

Page 118: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSPreconditioned fruit will be protectedagainst internal breakdown if the shipperhas conditioned fruit for at least 24 to 48hours with proper humidity (85-95% Relative Humidity).

Monitor storage temperature and fruitpressures daily to maximize fruit qualityand minimize loss. Pressures must be takenon fruit that is room temperature and representative of a given shipper’slot specifications.

The aroma of pre-conditioned fruit is great for advertising because the aromaticappeal catches customers’ attention.

PRE-CONDITIONED TREE FRUIT

RECOMMENDED DISPLAY IDEASThe combination of peaches, plums and nec-

tarines displayed side by side with signage thatdepicts their special ripe characteristics would workvery well.

POINT OF PURCHASE/SIGNAGESignage should let the consumer know that this

fruit has been pre-ripened naturally in order to givethem an outstanding piece of fruit every time.

PROMOTIONAL/ADVERTISING IDEASIn-store tasting demonstrations are the ultimate

promotional tool for these commodities. The tastewill sell the product since all the ripening work hasbeen done at shipping point. When done in tandemwith conventional newspaper ads, look forward toan explosion in sales.

118 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEAS

Fabulous Tie-In whether it be a garnish,appetizer, salad, dessert or an extraordinaryaddition to your favorite dish. Think California Pre-Conditioned Fruit.

For conventional or organic, Trinity Fruit willassure that you and your customers areguaranteed a sweet and fresh taste.

RIPENESS RECOMMENDATIONPeaches and nectarines should be displayed at

eight to ten pounds, plums at four to six pounds.

RECEIVING, STORAGE AND HANDLING TIPS1. Upon receiving, take firmness pressures on 10

pieces of fruit per lot. Pressures should betaken on the shoulder, tip and both cheeks,then averaged. Pressures should be taken onfruit that has pulp temperatures in the 68 to 70degree range.

2. Fruit with pressures at eight to ten poundsaverage should be stored at 34 to 36 degrees.Higher temperatures will increase rate ofripening.

3. Pressures should be monitored daily to guardagainst over-ripening.

VARIETY AND AVAILABILITY GUIDE• Peaches, plums and nectarines are available

from late May through September.• We can provide a continuous supply of all

three commodities throughout the season.

TRINITY FRUIT SALES CO.9479 No. Ft. Washington Road, Suite 103, Fresno, CA 93729Tel: 559-433-3777 Fax: 559-433-3790Website: www.trinityfruit.com Email: [email protected]

RIPEWAY®

Page 119: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 66

Page 120: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

STEAM VEGETABLES

These steaming items make an ideal breakbetween the packaged salad section and refrigerateddip/dressing section of the value-added produce category.

POINT-OF-PURCHASE/SIGNAGE Utilize point-of-purchase signage to communi-

cate to consumers these items are packaged in cooking vessels — No dishes or mess to clean up!

It is also important to communicate that sometimes a sauce component is included, thus theslightly higher price point. At first glance, the consumer may not recognize these added benefits.

VARIETY AND AVAILABILITY GUIDEMann’s Steam & Serve items target everyday

home cooks who are asking themselves at 4:30,“What’s for dinner?” Popular side dish offerings suchas vegetable medley with a fresh garden herb sauceare family-friendly with broad appeal. All are available year-round.

PROMOTIONAL/ADVERTISING IDEASThese steam vegetable items are ideal for

120 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

“build-a-meal” types of advertising vehicles. Partnerthem with your store’s rotisserie chicken or otherready-to-eat protein products, a packaged salad anda loaf of bread. Dinner is served! Another idea is toincorporate them into any weekly meal planner toolsyou offer consumers.

DISPLAY CARE AND HANDLING Merchandise steam vegetable items in the value

added produce case next to packaged salads andrefrigerated dips/dressings. Proper temperature control is paramount to the success of these items.Keep constantly refrigerated between 34° and 38° F.

BACKROOM RECEIVING AND PREPARATION PROCEDURES

Refrigerate immediately upon receipt. Even a fewminutes at room temperature will greatly impact theshelf-life and quality of these items.

CROSS-MERCHANDISING OPPORTUNITIES Partner with a packaged salad and ready-to-eat,

center of plate proteins, so consumers can quicklyand easily build a meal.

MANN PACKING CO., INC.P.O. Box 690, Salinas, CA 93902-0690Tel: 800-884-MANN (6266) Fax: 831-422-5171Website: www.veggiesmadeeasy.com Email: [email protected]

Page 121: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 73

Page 122: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSSample California peaches, plums and nectarines every week.

Use non-price promotions to boost profits.

Partner with your shippers.

Educate your store level produce staff —your customers will appreciate their knowledge.

STONE FRUIT

OUT-OF-THE-BOXPROMOTIONAL IDEASGo local! Capitalize on community summeractivities by sponsoring summer fairs,events and other outdoor activities. BringCalifornia peaches, plums and nectarinesalong for consumers to sample as arefreshing summer snack. Bring flavor totheir fun while encouraging a healthylifestyle!

POINT OF SALE SIGNAGEConsumers are always

interested in knowing moreabout the food they are eating,so educate your customersabout the peaches, plums andnectarines they are purchasing. Ripe ‘N Ready, Zealand Treehouse Kids each have their own unique pro-gram of informative posters, display cards, cartontalkers and recipe cards. Selection tips and usageideas from these POS pieces could increase yourstone fruit category volume by 50%.

Your signage program can be enhanced withPOS pieces that help the consumer get to know thegrower. Gain the trust of “locavores” and eco-savvyconsumers by displaying grower profiles availablefor download at FreshSense.net. Each enables you toshare stories, photos, farming history and the uniquegrowing practices from the family of growers repre-sented by FreshSense.

VARIETY AND AVAILABILITY GUIDECalifornia stone fruit is available from early May

through September. There are over 600 differentvarieties of California peaches, plums and nectarines,each with their own unique flavor and harvest window. Stone fruit growers develop new varietiesevery year to make sure there are fresh, new flavorsready throughout the season. To find out the whenyour favorite varieties are available, go to eatcalifor-niafruit.com and click on the Retailers section.

PROMOTIONAL/ADVERTISING IDEASPromote Ripe ‘N Ready’s “Great Taste Guarantee”

in your weekly print ads using logos and graphicsavailable at FreshSense.net. Go green by partneringwith Zeal and give away eco-friendly reusable grocery bags with qualifying fruit purchases. And

highlight the fun, friendly face of Treehouse Kids by partnering with FreshSense for an in-store sweepstakes that offers qualified customers thechance to win a custom summer treehouse!

RIPENESS RECOMMENDATIONSYellow flesh peaches and nectarines can be

enjoyed when soft, juicy and yielding slightly togentle palm pressure. Some consumers prefer themslightly more firm, when they’ll be a bit more tart.White peaches and nectarines are sweet when stillfirm and crunchy; they can be enjoyed that way orallowed to soften. Both varieties will become sweeterand juicier as they soften.

Red coloring on peaches and nectarines is not anindicator of ripeness — look for uniform overall

color with little to no green around the stem. Plums are best when firm with a little

“spring.” While plums are generally known fortheir tart skin and sweet flesh, the skin will becomeless tart and the flesh sweeter as the plums ripen andsoften.

DISPLAY CARE AND HANDLINGExperience a personalized FreshSense seminar

with your staff! Hands-on training with FreshSensewill give your staff the tools they need to answerquestions from your curious consumers. Or takean online course at CalStatePPN.com to learn abouteverything having to do with peaches, plums andnectarines, from seedling to storefront. Become an expert in the category from the leaders in the industry, and receive a diploma at the end of your training!

BACKROOM RECEIVING AND PREPARATION PROCEDURES

• Don’t break the cold chain. Keep stone fruitrefrigerated under 38° F. The ideal temperatureis between 34° F and 37° F.

• No in and out. Once fruit has left refrigerationfor the store, it begins its ripening cycle andshould not be placed back in cold storage.

• Rotate properly. The first fruit received shouldbe the first fruit to the shelf.

• Handle with care to avoid unnecessary bruising.

FRESHSENSE150 NewMark Ave., Parlier, CA. 93648Tel: 866.747.3673 Fax: 559.646.3662Website: www.FreshSense.net

122 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

Custom partnership opportunities with Ripe ‘NReady, Zeal and Treehouse Kids product lines canhelp you capitalize on the unique demands oftoday’s consumer. FreshSense provides the best pre-conditioned stone fruit available with Ripe ‘NReady, backed by the industry’s only “Great TasteGuarantee.” Eco-friendly consumers will appreciateknowing that all Zeal fruit is grown under the Protected Harvest program, a certified sustainablegrowing standard. And health-conscious moms canfinally find stone fruit that their children like withthe kid-tested Treehouse Kids brand.

FreshSense, backed by its partners, BallantineProduce Company, Fowler Packing and SunWestFruit Company, is full of proven resources to trainretail staff, build the PPN category and connect toyour consumers!

RECOMMENDED DISPLAY IDEASArrange the uniquely designed Ripe ‘N

Ready cartons to amplify your water-fall display. Use Zeal POS to conveythe unique story of sustainablefarming. And attract active momsconcerned about their children’s

health with a freestanding TreehouseKids display.

Merchandising Best Practicesresearch commissioned by the California PPN Network has shownthat placing complementary fruitsnear a display of peaches, plums andnectarines results in increased sales.California peaches and nectarines arebest displayed adjacent to berries,melons and grapes, while Californiaplums show sales increases throughthe use of educational POS. Plumsare often misunderstood, so teaching

the consumer what to look for when choosing a California plum increases the likelihood of a favorable eating experience. Set up your peach, plumand nectarine displays with complementary fruit andeducational POS from FreshSense, and enjoy optimalresults. Download your own Consumer Insights andBest Practices brochure from FreshSense.net underthe Retailer Resources section.

Page 123: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 42

Page 124: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

SWEET ONIONS

Onions are the most consumed produce item in the world. Average annual onion per capita consumption in the United States is 21 pounds. Flavor Matters…The ability to ensure a consistent sweet onion flavor profile is important. Retailers can

now ensure their consumers an enjoyable eating experience every time! That equates to repeat sales and loyal customers.

Since Certified Sweet® onions are available year-round it is easy to see why Sweet Onions are the recognized driver of the onion category.

124 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

KEYSTONE FRUIT MARKETING11 N. Carlisle St., Suite 102, Greencastle, PA 17225Tel: 717-597-2112 Fax: 717-597-4096Website: www.keystonefruit.com

CCROSS-MERCHANDISING OPPORTUNITIES

Sweet Onion usage is very diverse and cross-merchandising opportunities are virtually limitless.Their sweet mild flavors make them fantastic on a hamburger or in a fresh salad — simply slice andenjoy. As an ingredient they are guaranteed to enhance your favorite recipes; sweet onions will takeany menu offering to a whole new level!

Emphasize Certified Sweet® onions’ great taste and nutritional benefits with salad ingredients for ahealthful New Year’s “New You” resolution. Great with guacamole and fajita mixes for Super Bowl andCinco de Mayo promotions. Perfect with steaks, burgers and kabobs — “grillin” promos are always a hit!And don’t forget the fresh fruit baskets – sweet onions are terrific with fresh fruit. Available: Spring and Summer

Available: Summer and Fall

Available: Fall, Winter and Early Spring

AVAILABILITY GUIDE:GREAT NEWS – Certified Sweet® onions

are available 365 days a year. Feature year-round availability to consumers and useregional freshness as an educational vehicle toeducate consumers on uniqueness of recog-nized sweet onion growing districts whilemaintaining the same great taste they expect.Creating brand awareness translates to con-sumer loyalty and repeat sales.

Page 125: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

OUT-OF-THE-BOXPROMOTIONAL IDEASBack to our Roots campaign: Feature pictures, biographies, history ofgrowers (real people) who produce sweetonions.

Education: Sweet Onion University featur-ing preparation tips, such as cooking andcutting; educational tips, including storageand handling; and usage ideas, such asrecipes and how-to’s. Issue certificates ofcourse completion and use in advertising.

Utilize Keystone Kitchen Web site, VidaliaOnion Association, Walla Walla SweetOnion Committee Web sites, etc…

Schedule a celebrity chef demo at newstore openings.

Feature customer testimonials and sharereal consumer’s photos and stories regard-ing new recipes, first time users or specialdinner party/favorite recipes using sweetonions.

RECOMMENDED DISPLAY IDEASGO BIG!!! Capitalize on one of today’s hottest

trends – fresh produce. It’s healthful, colorful andbursting with freshness. Nothing says, “Buy Me,”quite like big, prominent bulk and consumer bag dis-plays. End caps, stand-alones, value-added product offerings, multi-size strategies and consumer bagged displays offer consumers multiplebuying options and ensure incremental sales lift!

Establish secondary display areas, especiallyduring promotional periods, to increase sales andconsumer awareness. Effective point-of-purchasematerials and signage also help to showcase thenutritional benefits and outstanding flavor of high-quality sweet onions to consumers. Thirty percent of consumers said they would buy and eatmore fruits and vegetables if they knew how to usethem – go ahead and help them…

FLAVOR AND NUTRITION DIFFERENTIATIONProduct differentiation gives consumers

reasons to buy with confidence. Emphasizing thequality, flavor, nutrition and food safety differencesof Certified Sweet® onions over regular cookingonions will promote higher rings at the cash register. The top two reasons people eat fruits andvegetables are taste and nutrition. Product education and tasting demos allow consumers to experience products and always generate sales lifts.

PROFITABLE PARTNERSHIPSConsumers respond to brand recognition.

Consistently purchasing the highest quality sweetonions brands from only reputable industry leadersis the easiest way for retailers to provide consumerswith confidence that they are buying the highestquality, safest, freshest and most flavorful sweetonions all year long. Forming a win-win relationship between vendors and retailers provideslong-term, sustainable and uninterrupted supply.

KEYSTONE FRUIT MARKETING11 N. Carlisle St., Suite 102, Greencastle, PA 17225Tel: 717-597-2112 Fax: 717-597-4096Website: www.keystonefruit.comKeystone Vidalia® grower Jim Cowart

In-store demo with Chef Dave

MARCH 2009 l MASTERS OF MERCHANDISING l PRODUCE BUSINESS 125

Page 126: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

SHIPPING CONTAINERS40 lb. cartons/RPC’s

20 lb. cartons

15 lb. cartons

5 lb. and 3 lb. bags

Individually Shrink Wrapped

• • •

For recipes, go to the Council’s websitewww.sweetpotatousa.organd its links, as well as the Weight Watchers website:www.tinyURL.com/sweetpotatoes

SWEET POTATOES

KEY SELLING STRATEGIES• Offer two sizes: U.S. #1 for regular customers,

Jumbos for value conscious customers• Offer loose, bagged and individually wrapped• Offer two colors: For example, Rose and Cream

colored• Stock up for four (4) big Holidays and build

large displays: (1) Easter; (2) Mother’s Day; (3)Thanksgiving and (4) Christmas/New Years.

SELLING MESSAGES, OR PHRASES, TO USE IN RETAIL ADS

• Bursting with Beta Carotene (antioxidant)• Cholesterol Free• Contains Folate• Fat Free• Good Source of Fiber• Great for Grilling• Healthy, Delicious and Nutritious• High in Vitamins A and C, and Potassium• Naturally Sweet• Rich in complex carbohydrates• The Versatile Vegetable

126 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

THE UNITED STATES SWEET POTATO COUNCIL12 Nicklaus Lane, Suite 101, Columbia, SC 29229Tel/Fax: 803-788-7101Website: www.sweetpotatousa.org

CCOOMMMMEERRCCIIAALL VVAARRIIEETTIIEESS SSHHIIPPPPEEDD

VARIETY SKIN COLOR FLESH COLOR

Beauregard Light Rose to Tan Dark or Deep Orange

Covington Rose Dark Orange

Diane Burgundy Deep Orange

Evangeline Light Rose to Tan Bright Orange

Golden Sweet Gold to Tan Light Yellow

Hatteras Rose Dark Orange

Kotobuki (Japanese) Purple Cream

O’Henry White or Cream Cream

CROSS MERCHANDISINGDisplay with nuts (pecans and walnuts); with

various dips and dressings; with spices (cinnamon,curry, garlic, ginger, nutmeg, and rosemary); andwith brown sugar, pie shells, marshmallows andmaple syrup

IMPORTANCE TO YOUR PRODUCE DEPARTMENT• Consistent, Year Round Supply• High Profit Margin• Increasing Demand and Production (2008

annual production: 1.8 bbiilllliioonn pounds)• Increasing Per Capita Usage • Variety of Skin and Flesh Color

RECEIVING, HANDLING AND DISPLAYING• Do Not Refrigerate. Sensitive to chilling and

freezing• Do Not Mist• Store at 55 Degrees Fahrenheit (13 Degrees

Centigrade) and 85 % R.H.• Ethylene Sensitive. Should nnoott be stored or

transported with commodities that produceethylene. Typical Shelf Life: 10 to 14 days after packaging (Before packing, sweet potatoes store well under proper conditions for 52 weeks.)

—————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————————

———————————————————————————

Page 127: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 7

The Sweet Potato:A Powerhouse of Nutrition

(“Low in calories and sky-high in everything else”)

According to Ms. Colleen Doyle, MS, RD and director of nutrition and physical activity at the American CancerSociety, sweet potatoes “just happen to be loaded with cancer-fighting beta carotene, phytochemicals andfiber”. Ms. Doyle goes on to say that “sweet potatoes are just loaded, loaded, loaded with beta carotene andphytochemicals” (Source: www.cancer.org)

Dr. Janice Bohac, a research geneticist and sweet potato breeder, formerly at USDA’s ARS Vegetable Lab inCharleston, SC, says “sweet potatoes contain a high-quality protein, similar to that found in eggs, and arepacked with nutrients, including high levels of carotenoids (especially beta carotene), copper, vitamins C andE, and fiber”. (Source: www.prevention.com).

In an article entitled “Healing With Dr. Andrew Weil”, the headline states that “The Sweet Potato is King: Anearly perfect food that’s low in calories and sky-high in everything else”. (Source: www.prevention.com) “Whilenearly all plant foods contain health-promoting phytochemicals” sweet potatoes are listed among the mostphyto-dense food sources. (Source: www.askdrsears.com)

For recipes, go to the Council’s website (below) and its links,as well as the Weight Watchers website: www.tinyURL.com/sweetpotatoes

www.SweetPotatoUSA.org

THE UNITED STATES SWEET POTATO COUNCIL

12 Nicklaus Lane, Suite 101Columbia, SC 29229

Phone/Fax: (803)788-7101

Page 128: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

QUICK TIPSMonitor inventories closely to avoid out-of-stocks.

Keep displays consistent so consumersknow where to find their fresh-cut vegetables.

Use point-of-purchase signage to drawattention to the snack pack items.

Promote, promote, promote...leverageMann’s customer support programs tobring new users to the category and keepcurrent customers coming back.

VEGETABLE SNACKS

RECOMMENDED DISPLAY IDEASMerchandise vegetable snack packs next to baby

carrot products. In larger stores, dual placement byrefrigerated dips is successful. Build a snack sectionor a grab-and-go refrigerated display case near thestore entrance or checkout stands for impulse sales.Snack packs sometimes come in smaller bags, soeye-level placement proves most effective.

Fresh-cut vegetable sections make an excellentbreak between packaged salad displays and refriger-ated dressings and dips. Keep displays well stockedwith product rotated by best-if-used-by date, first in,first out.

POINT-OF-PURCHASE/SIGNAGESKU-specific channel strips and shelf talkers are

available to draw attention to the vegetable snackarea. These products tend to be in smaller packages,so point-of-sale support material can help draw theshopper’s eye and spur trial.

Mann Packing offers a year-round promotionschedule including on-pack coupons and othercross-promotions with leading store brands.

128 PRODUCE BUSINESS l MASTERS OF MERCHANDISING l MARCH 2009

OUT-OF-THE-BOXPROMOTIONAL IDEASCross-promote during back-to-school! Put a lunch box display case near the vegetable snacks to promote healthfulsnack ideas for families.

Team with the deli and offer vegetablesnacks instead of potato chips as part oflunch time sales.

VARIETY AND AVAILABILITY GUIDEMann’s line of fresh-cut vegetable snacks is

available at a stable price on a year-round basis.Also available are larger pack sizes suitable forentertaining bigger groups. Mann also offers Veggieson the Go party platters, “Veggiecatessen” platterswith unique dips and snack crackers as well as “Tail-gaters” with more savory ingredients like turkeybites and cheese cubes.

PROMOTIONAL/ADVERTISING IDEASCross-promote fresh-cut vegetables with dips or

place in a refrigerated case near the deli counter tocapture lunch time sales from the sandwich crowd.Promote during back-to-school events and post Holiday Healthy eating themed programs.

RIPENESS RECOMMENDATIONSKeep all of Mann’s vegetable snack products

refrigerated at a constant 34° F. Rotate first in, firstout, according to the best-if-used-by date.

All of Mann’s fresh-cut vegetables are availableyear-round.

DISPLAY CARE AND HANDLINGShingle the packages on the shelf like tiles on a

roof top. Do not stack on top of each other. Keepconstantly refrigerated, allowing adequate airflow in

MANN PACKING CO., INC.P.O. Box 690, Salinas, CA 93902-0690Tel: 800-884-MANN (6266) Fax: 831-422-5171Website: www.veggiesmadeeasy.com Email: [email protected]

between packages. Avoid excess moisture by keepingthe product away from misters. Try to keep SKUplacement consistent on the shelf and utilize shelfchannel strips so consumers have an easier timefinding their favorite products.

Consistency in displays and avoiding out-of-stock situations are key to building sales.

BACKROOM RECEIVING AND PREPARATION PROCEDURES

Refrigerate immediately upon receipt. Keep shelfwell stocked, but do not overcrowd the display space.It is better to replenish frequently than to present acluttered display that is harder for the consumer tonavigate and for you to keep organized. StoreMann’s fresh-cut vegetables away from excess moisture.

CROSS-MERCHANDISING OPPORTUNITIESCross-promote with any type of “topper” product

— dips, cheese spreads, other produce snack itemssuch as baby carrots, sliced apples or fresh-cut fruit.Build dual displays in high traffic areas to capturegrab-and-go sales. Merchandise near the sandwichproduction area of the deli to capture lunch timesales.

Page 129: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 74

Page 131: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 131

Cabbage has never been an exotic vegetablesought after by foodies and connoisseurs, and somemight even say it is primarily a low-volume staple.That reputation stems from its value as a do-every-thing kind of vegetable that easily cozies up to meatand fish, while lending a hearty flavor to soups andstews. But like a diamond in the rough, cabbagepossesses aspects that make it a prime candidatefor aggressive merchandising that should begin topull its numbers up again.

According to a commodity profile produced bythe Agricultural Marketing Resource Center(AGMRC) at the University of California in Davis,CA, per capita consumption of fresh green cabbagehas never rebounded to its 1920s high of 22 pounds.Still, consumption was quite stable for at least the

15-year period leading up to 2005. From 2006 to2007, the category experienced a sales decline of alittle more than 4 percent, reports the U.S. Depart-ment of Agriculture (USDA), Economic ResearchService. It declined again 8 percent from 2007through the fall of 2008.

According to GMRC, coleslaw and sauerkrautare eaten most often by upper-income consumerswhile total cabbage consumption is highest amongmiddle-income households. Men consume 25 per-cent more cabbage than women, and womenyounger than 20 hardly eat it at all. Two-thirds of allhead cabbage sold is consumed at home, whichmay be a good sign as consumers are eating outless these days.

Those who grow and sell cabbage to the retailsector say they haven’t noticed a significant declinein sales, and they continue to view cabbage as aviable and necessary staple that offers opportuni-ties for growth, along with acceptable profits.

DEVELOP ING PROF ITTim Greene, director of marketing and farming

for the Boone, NC-based Hollar & Greene ProduceCo., says profitability of cabbage lies in the fact thatit is consistently in demand and has a long shelflife. While margins are about the same as others inits category, it has less shrink. But because it is soreadily available, retailers need to use cautionwhen pricing so people don’t go elsewhere to get it.

Ray Clark, president of the Leafy Greens Coun-cil in St. Paul, MN, agrees, describing cabbage mar-gins as steady. While cabbage isn’t something tomake a killing in, its shelf life adds a lot of value forthe retailer.

“Cabbage is one of the best values,” adds JeffWilliams, president at William P. Hearne Produce,based in Winauma, FL. “Most of the time, you canget a head of cabbage for $1, $1.50 or $2 tops, and ifyou take that and add a few potatoes and carrots,you’ll have a pretty healthful meal.”

Lee Anne Oxford, marketing director for L&MCompanies Inc., in Raleigh, NC, sees profit poten-tial of cabbage in its characteristics. She sites itshealth benefits and many uses as prime promotion-al factors, but says it takes some effort to conveythese things to consumers to ultimately grow sales.

As economically strapped consumers begin tofocus on value, it’s critical now more thanever to energize this staple using creativemerchandising techniques.

Green Up Cabbage SalesSmart merchandising, proper pricing and quality packaging can build profits for this leafy favorite.

B Y D U A N E C R A I G

Two-thirds of all head cabbage sold is consumed at home, a good sign asmore consumers are eating out less these days.

Page 132: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9132

PUSH REC IPES , LOCAL AND HEALTH

Hollar & Greene’s Greene envisions afuture of increased cabbage sales by educat-ing the consumer on various ways to use itin cooking. Including recipes either on thewrap or in tear-sheet displays near the prod-uct immediately gives the buyer some ideason uses and preparation techniques.

“It’s a low-volume staple and it’s hard toexpand that business,” explains Mike Riner,vegetable farm manager and sales represen-tative at the Elba-NY based CY Farms LLC,“but sales can be helped if you put recipesout there and you help people notice it.”

“The older people make cabbage rollsand stuffed cabbage and those recipes justneed to be put out there,” adds William P.Hearne’s Williams. “Educating the con-sumer will increase sales since many timespeople just don’t know how to prepare it.”

According to AGMRC, the cabbage indus-try, unlike other portions of the U.S. pro-duce industry today, is domestically orient-ed. As such, it lends itself to locally grownpromotion. Hollar & Greene heavily pro-motes locally grown where it is appropriate.

L&M’s Oxford says cabbage is a strength-ener of the local connection for consumers.“We supply recipes and we also do a goodlocally grown program. Cabbage is grown inquite a variety of areas up and down theEast Coast and it also grows in a lot of differ-ent regions, so it is a good locally growncommodity.” From a retailer’s perspective,sourcing the locally grown may providesome price advantages, too, she adds.

Riner of CY Farms stresses the impor-tance of communicating cabbage’s health

benefits. Including a fact sheet near the dis-play not only provides recipes, but it alsonotes the anti-cancer characteristics of cab-bage, which will help people to understandits value in a healthy lifestyle.

Low consumption by women is onepotential opportunity for more sales. ThePolish Women’s Health Study, as reported inOncology Times in New York, NY, foundwomen who consumed three or more por-tions of raw or short-cooked cabbage a weekduring adolescence lowered their cancerrisk by 72 percent when compared towomen who consumed fewer than one-and-a-half servings a week. The magic bullets incabbage are called glucosinolates, which aremetabolized into derivatives that have anti-cancer characteristics.

ST. PATR ICK ’S DAY AND YEAR -ROUND

The peak demand for cabbage occursduring the time surrounding St. Patrick’sDay, according to AGMRC. December andFebruary are also times of peak demand.While cabbage is harvested year-round inCalifornia, other states such as Pennsylva-nia, Michigan and Wisconsin have seasonsthat extend sometimes six months beyondtheir typical October harvest due to the useof cold storage.

Near St. Patrick’s Day, Hearne Producesupplies cabbage in a high graphics boxshowing a leprechaun and a pot of gold andwhen placed on an end cap they help tohighlight the product. Retailers can takeadvantage of other opportunities to promotecabbage beyond St. Patrick’s Day. Oxfordsays promoting cabbage slaw with fish

would work most anytime of the year. Oth-ers point to wintertime promotions withrecipes featuring stews as additional cab-bage sales boosters.

Some retailers are using varieties of cab-bage with smaller heads to position thecommodity as attractive to small house-holds. L&M sells one of the varieties thatproduces a smaller head. Oxford says theseheads are a 2-person serving and that theyhave done fairly well in that market.

SMART PACKAGINGSome see wrapping heads of cabbage in

cellophane or other similar materials asthe solution to several packaging issues.Hollar & Greene’s Greene says the firstadvantage is that it provides a place for therecipe. Beyond that, it helps with sanita-tion, country-of-origin labeling (COOL)laws, traceability and check-out accuracy.

Additionally, since the supplier typicallytrims the cabbage head prior to wrapping,that is one less step store employees wouldhave to complete. Greene also says that therecipe opens the door for cross-promotingwith other products and for collaboratingwith suppliers of other recipe ingredients.

One example Greene uses features aprocessed food, such as salad dressing, inthe recipe and having that manufacturerpay for the wrap. He says this might help toaddress the major resistance to packaging ofcabbage, which is cost.

L&M provides wrapped heads, too, thatinclude recipes, adds Oxford.

PR ICE THE R IGHT WAYPricing cabbage by the head requires

some uniformity in head weight, but Hollar& Greene’s Greene says if that is present,this pricing strategy works well. Even forchains that use distribution centers, per-head pricing works well as long as theregional variances in head sizes is taken intoaccount when calculating the price.

William P. Hearne’s Williams sees cab-bage typically being priced by the pound. Insome locales, he has seen retailers cut headsin half and wrap them up to be sold by thepound, creating a size that appeals to small-er households. Especially with red cabbage— since it is most often used for garnish ormixed with other greens — smaller sizes,like heads cut into quarters, work well whenlarge quantities aren’t needed. Plus, reveal-ing the colorful interior of the red cabbageadds eye appeal to the department. “Theaverage head of (green) cabbage that we areshipping is probably about four pounds,”Williams adds. “That seems to be the idealretail size.” pb

The cabbage industry lends itself to locally grown promotions.

Page 133: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 133

MERCHANDISING

REVIEW

MERCHANDISING

REVIEW

Top 10 Ways To Boost Berry SalesGenerate excitement, sales and consumer traffic in berry category through effective merchandising and marketing.

B Y C A R O L M . B A R E U T H E R , R D

Strawberries, blueberries, blackber-ries and raspberries have evolvedfrom seasonal profit producers tokey contributors to the producedepartment’s annual bottom line.

“The berry category is huge for us,” reportsJose Manzano, director of produce forDorothy Lane Markets, a 3-store chain basedin Dayton, OH. “In fact, it’s our No. 1 catego-ry considering all berries together and 52-week availability.”

The berry category contributed 6.9 per-cent to total produce sales in 2008, accord-ing to W. Dundee, IL-based PerishablesGroup FreshFacts data powered byACNielsen. Since berries have the potentialto have a large impact on sales in the pro-duce department, it’s important that retail-ers take advantage of a variety of ways todisplay, merchandise and promote all vari-eties of berries on a year-round basis.

1 . BU ILD BERRY CATEGORYAROUND STRAWBERR IES

Strawberries “are definitely king of theberry category,” says Paul Kneeland, vicepresident of produce and floral for KingsSuper Markets Inc., a 25-store chain basedin Parsippany, NJ.

Strawberries contributed 3.9 percent tototal produce sales for the 52-week periodending Oct. 31, 2008, according to Fresh-Facts data.

In spite of other berries gaining shares,“Strawberries still dominate the categoryand continue to grow sales,” reports VincentLopes, vice president of Dole Berry Co. LLC,based in Monterey, CA. “It’s a very healthycategory that is still increasing.”

California produces the lion’s share of

Most leading retailers promote strawberries more than 40 weeks per year.

(FSGA), in Plant City, FL. “This acreage hasremained stable, however, there’s been anincrease in productivity over the years.”Retailers tend to automatically switch theirsourcing of strawberries from Florida to Cal-ifornia come the beginning of April.

According to Gary Wishnatzki, presidentand CEO of Plant City, FL-based WishnatzkiFarms, “We still have good quality and vol-umes into the first two weeks of April.”

The bulk of strawberries sold in the Unit-ed States are domestically grown. Mexico isthe leading exporter to the United States,shipping in the winter months, especially toWest Coast markets. Chile is the secondlargest source of U.S. strawberry imports,but perishability has limited this withimports at only 5,000 cases for the 2007/08season compared to 15,000 cases in 2006/07.

Tom Tjerandsen, spokesman for the

domestic strawberries. “State acreage is up3.8 percent over 2008,” states Chris Christ-ian, vice president of trade and nutrition forthe Watsonville, CA-based California Straw-berry Commission (CSC). “This, in part, isdue to increased demand over the past 10years. There’s also now a long, steady peri-od of supply from late March into Augustthat has allowed for more consistent promo-tions at retail. We also continue to seeincreased availability of strawberries intoSeptember and October due to secondary orsummer plantings.”

The Florida strawberry crop begins har-vest in November and runs through earlyApril, providing the wintertime counterpartto California’s supply. “The state producesabout 22 million flats on 8,300 acres,” notesTed Campbell, executive director of theFlorida Strawberry Growers Association

Page 134: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9134

Blueberries are second in sales to straw-berries at Kings, Kneeland says. “They’re onthe increase because of better availablequality. Plus, they have a taste profile differ-ent from strawberries that leads consumersto pick up both berries.”

The real opportunity with blueberries isin incremental sales, notes Naturipe’sBocock. “Most categories grow around 2 to 3percent, but the potential with blueberries isupwards of 10 to 15 percent.”

Blueberries contributed 1.7 percent tototal produce sales for the 52-week periodending Oct. 31, 2008, according to Fresh-Facts data. This percentage is poised to riseas fresh-market production skyrockets.

Production of fresh market blueberries inNorth America was 227 million pounds in2008 compared to 171 million pounds in2007, reports the Folsom, CA-based NorthAmerican Blueberry Council (NABC).

“Blueberry production for the fresh mar-ket continues to increase in response to con-tinued consumer interest in the healthful-ness of blueberries,” adds Mark Villata,NABC executive director.

On the import side, blueberry exports tothe United States from Chile were 14.5 mil-lion cases in 2007/08 compared to only 11million cases in 2006/07, according to datasupplied by the CFFA.

“Imported winter fresh blueberries havehelped the category grow by making blue-berries a year-round fruit,” explains NABC’sVillata. “Volume from South America isincreasing as new plantings start to mature

M

E

R

C

H

A

N

D

I

S

I

N

G

R

E

V

I

E

W

M

E

R

C

H

A

N

D

I

S

I

N

G

R

E

V

I

E

WChilean Fresh Fruit Association (CFFA),located in Stockton, CA, notes, “Strawberriesare a larger berry. They tend to jostle morein the container than do bushberries, whichcreates quality issues.”

2 . BOOST TOTALBERRY SALES

Strawberries may be king of the berrycategory, but, “Bushberries are increasingdramatically faster than strawberries,”reports Brian Bocock, vice president of salesfor Naturipe Farms LLC, in Salinas, CA.

The point to remember is that “strawber-ries begin with an almost universal userbase, so the increased consumption instrawberries is based on increased availabili-ty and on consumers eating strawberriesmore frequently,” adds Gloria Chillon, direc-tor of marketing for Driscoll StrawberryAssociates Inc., headquartered in Wat-sonville, CA. “Blueberries are on a rapidgrowth curve in terms of both user base andfrequency of usage, and raspberries andblackberries have even more room to growin terms of user base and consumption.”

Doug Perkins, director of sales at Hurst’sBerry Farm, based in Sheridan, OR, says,“Blueberries, blackberries and raspberriesare now mainstream in just about all pro-duce departments. Times of the year inwhich blackberries and raspberries are limit-ed in production still exist. However,stronger varieties are closing that gap, givingretailers more confidence to promote allthree on a more regular basis.”

“ Our research shows

consumer

knowledge of the

nutritional content

of berries has con-

tributed to the

increase of

consumption.”

— Patty Boman Giumarra/

VBM International Berry

and bear fruit.” Family Tree Farms, based in Reedley,

CA, is one grower that is entering the blue-berry market in a big way. “Our mission isflavor,” states Don Goforth, director of mar-keting. “To this end, we’ve obtained exclu-sive North American rights to grow andmarket several varieties of blueberries fromAustralia developed by a breeder with amutual passion for flavor. These haveintense flavor.”

“Our current blueberry varieties includeStar, O’Neils, Spring High and a very earlyvariety called Snow Chaser that actuallybloomed in November and was severelyhurt during a hard freeze late in the year,”Goforth continues. “The company’s currentproduction is centered in the KettlemanHills area of California, which produces fruittwo to three weeks earlier than fruit fromthe San Joaquin Valley. We expect our mainproduction to begin in late March and con-tinue into June. This gives us the advantageof going to market with one of the firstdomestic blueberries of the season at a timewhere imports are wrapping up and startingto look tired.”

The early domestic blueberry deal isgaining ground in Florida as well, where theberries harvest from early April to mid-May.“Florida is a relatively small player in blue-berry production, but acreage is increasingand production will grow in the next severalyears,” says Wishnatzki Farm’s Wishnatzki.

Raspberries are the No. 3 selling berriesat Kings, Kneeland reports. “The quality ofraspberries has much improved, especiallyin the domestic market and less so in theimports. Customers are looking for size, adeep red color and flavor.”

Jim Grabowski, merchandising managerfor Well-Pict Berries Inc., located in Wat-sonville, CA, says, “We’ve seen a remarkable

A destination berry patch is an important trend in the produce department.

Page 135: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 95

Page 136: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9136

increase in demand for raspberries and Ithink this has to do with newer varieties thattaste better.”

Raspberries contributed 0.8 percent tototal produce sales for the 52-week periodending Oct. 31, 2008, according to Fresh-Facts data.

Flavor is also propelling blackberry salesat retail, notes Kneeland. “There’s been ahuge improvement in blackberries. Becauseof this, they’ve become more mainstreamrather than just sit in the corner.”

Jerry D’Amore, director of new businessfor the Winter Haven, FL-based SunnyridgeFarms Inc., agrees, adding, “There’s been alot of good genetic work and cultural prac-tices done on blackberries to improve theireating experience and it’s paying off. Flavoris better now and so is their shipability.”

According to data provided by Fresh-Facts, blackberries contributed 0.4 percentof total produce sales for the 52-week periodending Oct. 31, 2008.

3 . STOCK A VAR IETY OF BERR IES

When it comes to berries, size offers anincremental sales opportunity. “I thinktoday’s consumer has more of a focus on fla-vorful berries,” reports Cindy Jewell, direc-tor of marketing at Oxnard, CA-based Cali-fornia Giant Inc. “Consumers want to pur-chase berries that taste like berries. Size issecondary in priority.

“Don’t forget to include stem berries inthe product mix,” Jewell continues. “Sincestem berries are also sold in clamshells,shrink on this item has been significantlyreduced compared to the days when theywere sold bulk on an “each” basis. However,shrink on this item can be higher than stan-dard berries, so they should be refrigeratedor have fewer quantities on display sinceturns on this item may not be as rapid.”

Driscoll’s Chillon adds, “For stores withthe right demographic mix, long-stem straw-berries present another venue to increasethe dollar value of consumer purchasesthrough the berry patch display.”

Some consumers still consider stemberries as a luxury or special occasion berry.“Promote during holidays such as Valen-tine’s Day, Easter and Mother’s Day,” sug-gests D’Amore.

However, “If featured with meltingchocolate for dipping, suggestive selling likethis makes any time a special occasion andsupports additional impulse purchases,”states Jewell.

As for bigger blueberries, Hurst’s Perkinssays, “There are times of the year, such asMay, July and December, where the fruit isquite large or jumbo in size. This is an

M

E

R

C

H

A

N

D

I

S

I

N

G

R

E

V

I

E

W

M

E

R

C

H

A

N

D

I

S

I

N

G

R

E

V

I

E

W

Hook Berry Sales During Holidays

Holidays, such as Valentine’s Day andMother’s Day, provide retailers withthe perfect opportunity to boost

berry sales. “I think there is great opportu-nity to promote at graduation and thebeginning of summer with fruit trays, fruitand dip displays, as well as fun barbecueand entertaining recipes that bring thisunique presentation into play,” explainsMichelle Deleissegues, marketing directorfor Red Blossom Sales Inc., headquarteredin Oxnard, CA. “Christmas and New Year’sare also great times to present berries as aspecial holiday treat. Berries are great withcocktails, cheeses, desserts and cham-pagne toasts.”

Tim Wetherbee, sales manager at Ham-

monton, NJ-based Diamond Blueberry Inc.,agrees. “Close to 50 percent of the NewJersey blueberry crop moves over theFourth of July holiday. This is a big promo-tional time for us.”

It’s important “to promote pre-holiday,holiday and in the post-holiday weeks tomaximize sales,” stresses Chris Christian,vice president of trade and nutrition for theCalifornia Strawberry Commission (CSC),located in Watsonville, CA.

Don’t forget to plan orders in advance,reminds Stephanie Hilton, director of mar-keting at Beach Street Farms, based in Wat-sonville, CA. “Order aggressively whenberries are on ad, because sales can morethan triple.” pb

opportunity to promote something differentwith an item that is available on a year-round basis.”

4 . OFFER ORGANICSStrawberries are the top-selling variety of

organic berries at Kings. “Raspberries aresecond due to availability, third is blueber-ries and then blackberries,” says Kneeland.

The same ranking in sales exists atDorothy Lane Markets. “Growers are doing agood job at increasing the amount of organicblueberries,” states Manzano. “We can carrythem almost year-round.”

“One-third of our blueberries out of Chilethis season are organic and we’re the largestblueberry shipper in Chile,” reportsNaturipe Farm’s Bocock.

According to research conducted duringthe first quarter of 2008 by Encore Associ-ates Inc., in San Ramon, CA, on behalf ofthe CFFA, best performing retailers whostocked a 1-pound clamshell of organicstrawberries and a 4.4-ounce clamshell oforganic blueberries, but did not necessarilypromote these products, saw a 250 percentsales increase over retailers who did notcarry the products at all or carried themsporadically during this time. The price oforganic blueberries per unit averaged $3more than their conventional counterparts.

Organic berries rose 35 percent in dollarsales and 19 percent in pounds during the52-week period ending Oct. 28, 2008,according to FreshLook Marketing data pro-vided by Giumarra/VBM InternationalBerry LLC, a Los Angeles, CA-based jointventure of The Giumarra Companies andVital Berry Marketing.

California Giant’s Jewell points to talkabout the poor economy having a potentialnegative effect on consumer purchases oforganics. “This may be the case with theconsumer who occasionally purchasesorganic berries and other produce items,”she explains. “However, some consumershave a very strong commitment to buyingorganic items on a regular basis.”

5 . CH ILL OUTMaintenance of the cold chain is the key

to berry quality. “Fresh berries are one ofthe few items in the entire supermarket thatcan make a broad statement about thatstore’s overall commitment to quality,”notes Driscoll’s Chillon.

During transport, “Maintain 32°F,” advis-es Dole’s Lopes. “Many carriers and dis-patchers worry berries will freeze at 32°Fand therefore they err higher, which, accord-ing to post-harvest studies, actually increas-es respiration, reduces shelf life and makesthe berries more prone to bruising in transit.We actually use discharge air in some of ourprecoolers as low as 29.5°F and strawberriestypically need to be held below 29°F for anextended period of time before freeze dam-age can occur.”

“To maximize cold chain management,retailers should immediately move berriesonce they’re received into refrigerated stor-age,” explains Chillon. “If the berries arecovered during transit, remove the plasticimmediately. Keep them dry and away fromall water and moisture sources.”

Hurst’s Perkins recommends displayingberries on refrigerated tables. “Maintaining acooler temperature on berries is important

Page 137: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 85

Page 138: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9138

for not only the shelf life while in the storebut also for the shelf life in the consumer’shome and ultimately repeat sales.”

If berries are displayed on unrefrigerateddisplay tables, “they need extra care and re-working since they will break down faster,”states California Giant’s Jewell. “Researchshows that one hour out of refrigeration canreduce shelf life by one full day. The bestmerchandising practice when displayingberries on un-refrigerated tables is to pricethem accordingly to ensure rapid sales andlimited time on display.”

Consumers can now comment directly tothe grower/shipper on the quality of theirberries. In December, Wishnatzki Farmsinstituted its FreshQC traceback system thatcan accurately trace a clamshell of strawber-ries all the way from the consumer back tothe individual who picked those strawber-ries in the field. “We are using this systemevery day for quality control,” notes Wish-natzki. “It gives us the ability to relate feed-back from consumers and retailers to a par-ticular grower, field and picker with pin-point accuracy. This provides everyoneadded incentive and the ability to stayfocused on quality.”

Driscoll’s is also introducing a systemthat allows people to trace an individualclamshell from the consumer back to thefield where it was grown via an on-pack, 12-digit identification code.

6 . OFFER LARGER PACKAGE S IZES

Today’s consumers “are looking forvalue,” points out Kings’ Kneeland. “Theysee bigger pack sizes, they do the math, andthey find the price connection. We promote2-pound clamshells of strawberries and 18-ounce clamshells of blueberries whenthey’re available.”

Stocking larger pack sizes “is a trend thatcould mean more movement for both grow-ers and retailers,” states Michelle Deleis-segues, marketing director for Red BlossomSales Inc., in Oxnard, CA. The 4-pound unitfor strawberries continues to have increasedsales and the 18-ounce size blueberry hasbeen very popular this winter.”

Hurst’s Perkins agrees, adding, “Strongerquality fruit is allowing bigger pack styles tobe introduced. This includes a 12-ouncepacks of raspberries and blackberries.”

The 1-pound clamshell of strawberries isthe workhorse of the berry category. “The 1-pound clamshell represents 67 percent ofdollar sales at retail, the 2-pound represents16 percent and the 4-pound represents 7percent,” says CSA’s Christian. “Interesting-ly, three years ago, the 1-pounder represent-ed 90 percent of dollar sales.”

“We recommend that the 1-pound pack-age should occupy 60 percent of the displayspace and the 2-pound and 4-pound pack-ages should each occupy 20 percent of thedisplay space from March through August,”Christian continues. “This display spaceshould be expanded during peak availabilityand holiday promotional periods.”

As for bushberries, “Most retailers lookfor the 4.4-ounce clamshell at the start ofthe season to achieve a certain price point,”adds Sunnyridge’s D’Amore. “Once volumeincreases, the trend now is to go with a 6-ounce pack as the standard.”

7 . ALLOCATE ENOUGH D ISPLAY SPACE

Dorothy Lane Markets displays allberries together, says Manzano.

The unique aspect of the berry categoryis that it doesn’t cannibalize itself, statesNaturipe’s Bocock. “Retailers who build siz-able displays see an exponential lift in salesfrom all berries. Display contests amongproduce managers add that much moreexcitement and sales increase to the catego-ry as a whole.”

Driscoll’s Chillon agrees, adding, “Retailmarketing of a destination berry patch dis-play as a permanent part of the producedepartment is an important trend. In a veryhigh percentage of supermarkets through-out the United States and Canada, con-sumers can find a large display of freshberries in the same location practically year-round. This gives the retailer the flexibilityto expand or contract the share of the dis-play dedicated to each type of berry depend-ing on what has the greatest availability or ison promotion. At the same time, they con-tinue to merchandise other berries — oftenwith higher margins — as part of the samedisplay. This leads to add-on sales andincreased movement of all of the berries allyear long.”

Rotation is the key to keeping displayslooking fresh, notes Stephanie Hilton, direc-tor of marketing at Beach Street Farms,based in Watsonville, CA. “Also, keep dis-plays well stocked, especially during peakshopping hours of 4:00 pm to 8:00 pm.”

Hurst’s Perkins recommends buildingsecondary displays throughout the store,saying, “Put them up front. Put them in thedeli area. Put them in the prepared foodsarea. Berries have proven to provide high-profit margins.”

8 . CROSS MERCHANDISEAND CONDUCT DEMOS

Pairing berries with other ingredientsoffers meal solutions and sales opportuni-ties. “Display berries with complementary

M

E

R

C

H

A

N

D

I

S

I

N

G

R

E

V

I

E

W

M

E

R

C

H

A

N

D

I

S

I

N

G

R

E

V

I

E

W

“The best merchan-

dising practice when

displaying berries on

un-refrigerated

tables is to price

them accordingly to

ensure rapid sales

and limited time on

display.”

— Cindy Jewell California Giant Inc.

food items such as whipped cream andangel food cake,” suggests Stan Crafton, gen-eral manager at Giumarra/VBM Internation-al Berry.

Get creative with cross-merchandising,too, adds Red Blossom’s Deleissegues. “Pairberries with spinach, melons, smoothieingredients, non-alcoholic and alcoholicdrink ingredients, salsas and salads.”

Some retailers have found success withcross-merchandising berries in the cerealaisle, according to Sunnyridge’s D’Amore.“This is more complicated than bananasbecause you must have a rolling, refrigerat-ed unit to maintain the best berry quality.”

Chilean blueberry growers’ voluntarycontribution of an additional $100,000 perseason in the 2007/08 and 2008/09 seasonsto promote blueberries has sparked innova-tive recipe ideas for cold weather cross-mer-chandising for this fruit.

Ruth Lowenberg, senior vice president ofthe New York, NY-based Lewis & Neale Inc.,and spokeswoman for the U.S. HighbushBlueberry Council, located in Folsom, CA,explains, “With the winter availability offresh blueberries, we’ve worked with chefson wintertime usage ideas such as hot cob-blers, sauces and chutneys. There’s a trendnow for fruit-flavored cocktails and blueber-ries fit right in with this trend.”

Winter recipes and usage ideas for blue-berries have been communicated to con-sumers through print-media campaigns,radio and TV placements on PBS’s Chefs A’Field: Kids on the Farm and Mr. Food, and aSky Radio interview on American Airlinesand Northwest Airlines.

9 . SELL HEALTH BENEF ITSBerries “are low in calories and fat, but

high in antioxidants, vitamins and fiber,”

Page 139: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

reports says Driscoll’s Chillon. “They tastegreat, too.”

“The media does an excellent job ofinforming consumers about the nutritionalattributes of berries,” states Patty Boman,director of category management for Giu-marra/VBM International Berry.

“Retailers can capitalize on this byadding nutritional signage and other POS,”Boman continues. “Our research shows con-sumer knowledge of the nutritional contentof berries has signigicantly contributed tothe increase of consumption.”

The latest research regarding the rela-tionship berries have with a variety ofhealth benefits is the focus of the 2009International Berry Health Benefits Sympo-sium to be held in June in Monterrey, CA.The National Berry Crops Initiative — apartnership of industry, academia and gov-ernment — will host the conference.

10 . ADVERT ISE AND PROMOTE YEAR -ROUND

Dorothy Lane Markets actively promotesberries year-round. “Frequent promotions iswhat makes this the No. 1 category for us,”says Manzano.

At Kings Super Markets, “We’ll promoteblueberries, raspberries and blackberries atthree for $10 at the height of the season toencourage consumers to mix and match,”notes Kneeland. “This spurs volume move-ment and incremental sales.”

According to Driscoll’s Chillon, “It wasn’tthat long ago when berries were regarded asa loss leader, but that has changed dramati-cally. Consumers have indicated that they

are willing to pay a price for berries of alltypes. In fact, our research shows that in thesummer, fresh berries generate a per-square-foot profit that outpaces almosteverything in the produce department.”

Just because the price goes up on berriestoward the latter part of the year, “It doesn’tmean retailers can’t promote and sell lots ofstrawberries with well-managed berry pro-motional displays,” remarks Doug Ranno,chief operating officer and managing part-ner of Colorful Harvest LLC, in Salinas, CA.

Dole’s Lopes agrees, adding, “Most retail-ers that are leading this category promote

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 139

strawberries in excess of 40 weeks per yearin some combination of front page, backpage, line item and/or in-store promotion.This really is a promotion-driven item.”

Consider assortment-type ads featuringmix and match bush-berry types all at thesame price, states California Giant’s Jewell.“Be sure to include POS material and nutri-tional information for the consumer to helpinfluence purchase.”

Giumarra’s Crafton recommends runningads for buy-one-get-one on 1-poundclamshells of strawberries. “They’reextremely effective.” pb

“We’ll promote blue-

berries, raspberries

and blackberries at

three for $10 at the

height of the season

to encourage con-

sumers to mix and

match.”

— Paul Kneeland Kings Super Markets Inc.

Rea

der

Serv

ice

#11

Page 140: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9140

MERCHANDISING

REVIEW

MERCHANDISING

REVIEW

Five Ways To Sell More CarrotsBoost sales by offering bountiful displays with plenty of variety and value-added carrots.

B Y C A R O L B A R E U T H E R , R D

Consumers will continue to buy carrots regardless of the economy, but perhaps ina different form.

Consumers dig carrots. Despitetough economic times, sales ofthis staple root vegetable remainstrong, contributing 2.6 percentto total produce sales in 2008,

according to W. Dundee, IL-based Perish-ables Group FreshFacts data powered byThe Nielsen Co.

“Carrots are a year-round consistent sell-er for us,” states Jose Manzano, producedirector for Dorothy Lane Markets, a 3-storechain based in Dayton, OH. “We carry themall — cellos, babies, organics, lunch sizesand value-added.” Yet, some cost consciousshoppers are opting for a less expensive, andtherefore less convenient form of carrot.This is changing the category’s landscapeand driving retailers to ditch old merchan-dising strategies and plant a few new ones.

1 . CELLOS & BAB IESREMAIN BEST SELLERS

Baby carrots remain the No. 1 seller atKings Super Markets Inc., a 25-store chainbased in Parsippany, NJ. “The 2-pound babyis second, followed by the 1- and 2-poundcellos,” reports Paul Kneeland, vice presi-dent of produce and floral.

Baby carrots represented 56 percent oftotal U.S. carrot category dollar sales for the52-week period ending Oct. 26, 2008,according to Information Resources Inc.(IRI) data, as supplied by Bakersfield, CA-based Grimmway Farms. This represented a1 percent decrease compared to the sametime period last year.

Harry Sheaffer, sales manager at Marker29 Produce Inc., in Lake Park, GA, says,“Baby carrots flourish because there are somany forms and uses, including being afavorite in lunchboxes.”

Meanwhile, fresh carrots represented

20.5 percent of total U.S. carrot category dol-lar sales, according to IRI data, a 7 percentincrease from the prior year. Doug Willis,sales manager, at Arvin, CA-based KernRidge Growers, says, “It seems like we’reselling more of the cellos these days, more1-pounders and more of the 2-pounders, too.There’s been a bit of a drop off in baby car-rot sales.”

This is indeed a trend, agrees BillWolfert, general manager of Wolfert’s FamilyFarm, headquartered in Bradford, Ontario,Canada. “While baby carrots and cellos arebest-sellers, we’re seeing a swing back tomore cellos due to the declining economy.We’ll see this trend for the next three to fiveyears. Consumers will buy carrots regardlessof the economy. They’re a staple. We’ve sold

no less volume over the last 12 to 24months, but we have sold them in a differ-ent form.”

On this theme, Sheaffer adds, “I think theswitch to cellos is going along with a swingback to more cooking at home. Consumersare getting back into the kitchen and they’remore willing to do some peeling, choppingand cooking. For example, they’re pickingup a bag of carrots, a stalk of celery and abottle of ranch dressing and making theirown party trays. They’re also picking up abag of carrots for their soups and stews,rather than quickly throwing baby carrotsinto the pot.”

As a result, some retailers are starting tocarry more 3-pound and 5-pound cellobagged carrots. “We’re not going to see a real

Page 141: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 101

Page 142: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9142

decline in baby carrot sales as a result,”Sheaffer states. “I think we’ll just see a slow-ing of their sales growth.”

2 . GA IN INCREMENTALSALES WITH VALUE -ADDED

The two biggest growth areas in the car-rot category today are value-added andorganic,” notes Phil Gruzka, vice presidentof marketing at Grimmway Farms. “Forexample, our 1-pound, microwavable, petitecarrot is a big seller. It’s up significantly indouble-digit sales, and this has occurred forthe past few years. It’s about convenience.”

Kings’ Kneeland, who hasn’t seen a hugeresurgence in cellos, says, “Value-added car-rots — the coins, shreds and petites, forexample — have really helped to grow cate-gory sales.”

Value-added carrots represented 10 per-cent of total U.S. carrot category dollar salesfor the 52-week period ending Oct. 26, 2008,according to IRI data. This represents a 1percent increase compared to the same timeperiod a year ago.

“We’ve seen a drop off in sales in coinsand matchsticks,” reports Wolfert ofWolfert’s Farm. “I think it’s due to the pricepoint. Consumers want to save those extracents these days.”

3 . CONS IDER STOCKINGCOLORFUL CARROTS

Think carrot and a neon-orange colorsprings to mind. “We’ve carried the yellowand maroon carrots intermittently, but theyhaven’t done all that well,” says DorothyLane’s Manzano. “They don’t fit customers’image of a traditional carrot.”

On the other hand, Kings’ Kneelandreports, “It’s the novelty, the uniqueness,that entices consumers to pick these up. Wecarry the yellow organic, rainbow carrotsand maroon baby carrots on the bunch andthey’ve done well.”

M

E

R

C

H

A

N

D

I

S

I

N

G

R

E

V

I

E

W

M

E

R

C

H

A

N

D

I

S

I

N

G

R

E

V

I

E

W

Rea

der

Serv

ice

#87

“ Consumers are get-

ting back into the

kitchen and they’re

more willing to do

some peeling, chop-

ping and cooking.”

— Harry SheafferMarker 29 Produce Inc.

Are colorful carrots catching on? Yes andno, says Jeff Brechler, sales and productionmanager for J & D Produce Inc., an Edin-burg, TX-based grower of maroon carrots.“Some retailers are behind it and position itas another variety, or for its superior nutri-tional benefits. Others just see it as anotherSKU taking up shelf space.”

The answer is definitely “yes,” accordingto Doug Ranno, chief operating officer andmanaging partner at Salinas, CA-based Col-orful Harvest LLC. “When I first startedgrowing and packing these colorful carrots,most of the other larger carrot companiestold me that it would not work and that Iwas wasting my time. However, we’ve seena very steady growth each year, and I seeothers trying to get into colored carrots now.This alone should be an indicator that moreand more consumers want colorful carrots.

“Why wouldn’t consumers want to try arainbow of different colored carrots?” Rannocontinues. “Especially when they providesuch a diversity of nutrient benefits andgreat, sweet, crunchy taste? They are a per-fect way to help moms get kids interested inhealthful eating.”

Suppliers of colorful carrots have intro-duced a number of products, includingvalue-added. For example, Colorful Harvestoffers its traditionally bred rainbow carrots,which come in shades of red, orange, tanger-ine, yellow, white and cream, in poly bags ofwhole carrots, baby whole-peeled carrots,carrot shreds and carrot sticks.

In 2008, J & D Produce introduced itsBeta Bites, which are carrot coins sold in an8-ounce package, notes Brechler. “Themaroon color on our carrots is only 1/8- to1/4-inch deep. The inner core is orange.Therefore, peeled baby carrots are not some-thing we can make with this carrot withoutlosing its identity. But, we are looking at asnack-pack size of the maroon carrot coins.”

Also in 2008, Grimmway Farms addedtwo new value-added carrot products underits Cal Organic Farms label: organic, yellowbaby carrots in a 1-pound bag and shredded,yellow carrots in a 10-ounce bag.

4 . CREATE A COMPELL ING D ISPLAY

Maximizing dollar sales and moving vol-ume in the carrot category “depends onwhere you merchandise them,” states KingsSuper Markets’ Kneeland. “For example, wekeep the cellos all together over by the cook-ing vegetables. The shreds are displayednext to the bagged salads. The baby, peeledcarrots serve as color breaks on the wet rackso there’s not just a sea of green. These arethe best sellers; then again, maybe they’rethe best sellers because we put them in

Page 143: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

consumers,” reports Manzano.At Kings Super Markets, much of the

carrot category goes on promotion at strate-gic times during the year. “We just ran anad where we grouped several carrot prod-ucts together in our signature column,”says Kneeland. “This included items likethe bunched maroon carrots as well as reg-ular baby carrots. Best-sellers combinedwith the less familiar gets customers to trysomething new.”

There are no significant peaks and val-leys in supplies or sales of carrots through-out the year, according to Grimmway’sGruzka. “However, the largest sales takeplace from Thanksgiving to Super Bowl. It’sall the parties, plus cooking cold-weatherdishes like soups and stews. Carrot sales arelowest during the hottest months of June,July and August. A successful way to pro-mote carrots is to offer 1- or 2-pound bags ofbaby carrots for a deep reduction, say 50¢off, then offer a lower level promotion onancillary items at the same time, for exam-ple, 10¢ off carrot shreds.”

Promote other “hard goods” in the samead, adds Marker 29’s Schaeffer. “Potatoesand onions, for example, have the samelong shelf life as do whole carrots. This canbe a value to consumers — the fact thatthese items don’t go bad easily. Inform cus-tomers of this and tie-in a recipe.”

Demos are a successful way to promotecolorful carrots, says J & D Produce’sBrechler. “We’ve had a huge success withdemos. The problem is that sales don’t stayup afterwards until you keep promoting thecarrots regularly.”

When advertising organic carrots, “Theprice doesn’t need to be as low and the dis-count as deep as for conventional,” Gruzkanotes. “Don’t always put the pack or prod-uct on ad week in and week out. Vary thesizes. It’s a good way to trade consumers upto larger size packs.” pb

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 143

“Maximizing dollar

sales and moving

volume in the carrot

category depends on

where you merchan-

dise them.”

— Paul KneelandKings Super Markets Inc.

Organic Carrots 101

O rganic carrots are among the Top 5selling SKUs at Parsippany, NJ-based Kings Super Markets Inc.,

notes Paul Kneeland, vice president of pro-duce and floral.

According to Information Resources,Inc. (IRI), in Chicago, IL, organics represent-ed 13.5 percent of total U.S. carrot catego-ry dollar sales for the 52-week periodending Oct. 26, 2008. This represents a 9percent gain compared to the same time

frame a year ago.The demand for organic carrots “is

coming from consumers who don’t wantto eat synthetic pesticides in their foods,”explains Phil Gruzka, vice president ofmarketing at Grimmway Farms, headquar-tered in Bakersfield, CA.

Yet, “Like other value-added carrots, wesee organics down due to the higher pricepoint,” adds Doug Willis, sales manager atKern Ridge Growers, in Arvin, CA. pb

more than one location.”“The category for us has grown into an

average 4-foot wide section,” reports Man-zano of Dorothy Lane. “That’s what it takesto display all the variety consumers arelooking for today.”

As a consumer, “I like to see all carrotproducts in one place in the department,”adds Marker 29’s Sheaffer.

Wolfert Farms’ Wolfert agrees, adding,“Lining up the carrot products side-by-sideallows consumers to see the entire line ofwhat’s available, see the price points andmake their choices.”

Colorful carrots “should be displayedright next to traditional carrots and promot-ed to tell consumers about their benefits,”suggests Colorful Harvest’s Ranno.

But don’t let the smaller SKU of colorfulcarrots “get lost on the shelf,” advises J & DProduce’s Brechler. “Prevent this by placingthem within the display and giving themproper signage.”

Fresh-cuts should ideally be merchan-dised “alongside the same commodities soldin bulk,” recommends Candice Blackmoore,director of marketing at Apio Inc., based inGuadalupe, CA. “For bagged carrots, thatwould be near the bulk carrots. For carrots

in party trays, we recommend having a sep-arate set under the bagged vegetables or atthe bottom of the salad case.”

As a novelty, “Buy a 50-pound bag of car-rots and put them out in a loose display,”suggests Marker 29’s Sheaffer. “It gives afarm-stand look and feel and consumersmight like picking their own carrots muchas they do ears of corn.”

Timesaving continues to be a big draw tomany consumers, and this impacts whichSKUs of carrots to carry, explains Black-moore. “The economy has driven con-sumers to look for value first, which oftenmeans bulk or larger pack sizes. However,single servings and smaller packaging arestill popular with consumers looking totrade time for convenience.”

“Cross-promote carrots with dips anddressings, for example, for making a salad orslaw or for snacking,” adds Blackmoore.“This offers easy options and is a valuableresource for shoppers.”

5 . PROMOTE YEAR -ROUNDOne-pound packages of baby carrots in

conventional and organic varieties are pro-moted regularly at Dorothy Lane Markets“because they are the most popular with

The largest sales of carrots occur between Thanksgiving and Super Bowl.

Page 144: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9144

MERCHANDISING

REVIEW

MERCHANDISING

REVIEW

Merchandise Avocados With EaseCreative marketing and regionalized consumer education can significantly boost avocado sales.

The most effective avocado displays are placed near other ingredients used tomake guacamole, such as tomatoes.

B Y J O N V A N Z I L E

Lee Reynolds, director of producefor the Bellingham, WA-basedHaggen Inc. chain of supermar-kets, knows he can count on avoca-dos for consistently strong sales

and good margins. The fruit is easy to pro-mote, turns over quickly and yields ahealthy margin. In order to take advantageof avocados’ high profit margin, Haggenoffers the popular product year-round.

Once considered a seasonal exotic fruitwith a strong ethnic following, avocados arepoised to become a national staple, thanksto improved handling and packing tech-niques, and the introduction of Mexicanavocados to the entire U.S. market. Untilrecently, Mexican avocados were prohibitedin certain states. Due to a U.S Departmentof Agriculture (USDA) rule change in 2007,Mexican avocados are now available 365days a year anywhere in the country. Today,Mexico is the largest supplier of avocados inthe country. When combined with the Cali-fornia and Chilean crops, this means anyretailer in America can permanently stockripe, ready-to-eat avocados.

The avocado industry has worked dili-gently to translate increased availability intoincreased demand. The Hass Avocado Board(HAB), which has representatives from eachof the major avocado growing countries, hasdeveloped a highly effective communicationstrategy to increase avocado sales.

At the retail level, packers have made itpossible to offer ripe fruit through innova-tive ripening programs that can consistentlydeliver ripe, ready-to-eat fruit on demand.

Taken together, the increased availabili-ty, visibility and quality of avocados meansany retailer can launch a successful avocadoprogram. The key is knowing product veloc-ity, displaying the fruit using proven strate-

gies and aggressively promoting avocadoswhenever possible — not just on Cinco deMayo and Super Bowl weekend.

Retailers that follow these steps are likelyto be rewarded. According to Jan DeLyser,vice president of marketing for the Irvine,CA-based California Avocado Commission(CAC), annual avocado consumption is 3.2pounds per person in the United States, upabout 15 percent from 10 years ago.

“Avocados are one of our Top 10 com-modities on an individual basis,” Reynoldssays. “It’s one of those items consumers pickup on an impulse.”

STOCK MANY VAR IET IESAlthough there are several varieties of

avocados, the Hass avocado — a semi-aridfruit that grows readily in California andCentral America, as well as parts of SouthAmerica — dominates the U.S. avocadoindustry. Hass avocados represent at least95 percent of the avocado market. In someareas, they may be the only type of avocadofor sale.

The Hass avocado possesses many quali-ties that make it perfect for retailing. It is anexcellent tasting fruit with a high fat contentthat blends well into guacamole and other

Page 145: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 38

LGS Specialty Sales, Ltd.718-542-2200 • 800-796-2349 • Fax: 718-542-2354

www.lgssales.com

Page 146: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9146

studied the best way to successfully sell avo-cados. The most effective displays feature avariety of sizes of ripe fruit, ideally placednear complementary vegetables and herbs.Avocados should be displayed near onions,tomato, lime and cilantro — basically, theingredients used to make guacamole.

The size of the display, and even theripeness of the fruit, depends on the detailsof the market itself. It’s important to onlydisplay the number of avocados that willsell, as they are not very forgiving when itcomes to ripeness, and shrink can rapidlyeat into margins if too many avocados arelost on the display.

The United States can be loosely dividedinto several regions based on avocado pref-erence. The Pacific crescent, which runsfrom Washington down to California andthen east to Texas, is the largest market foravocados. In this region, so-called “superusers” buy up to 150 avocados annually, orthree per week. These consumers are expe-rienced avocado buyers. They buy baggedfruit in large quantities and they know howto ripen hard fruit at home.

The second largest market runs alongthe East Coast, from Florida up into theNortheast. In this market, consumers mayhave been exposed to avocado as a healthfood or through innovative menu items atrestaurants. These areas also have large His-panic populations that eagerly seek out thefruit. However, there is still plenty of roomfor growth and consumer education.

The Midwest and Great Plains are con-sidered developing markets, where avoca-

dos are sometimes unfamiliar fruit to con-sumers. In some cases, avocados weren’tavailable here on a year-round basis until2007, when the USDA allowed national dis-tribution of Mexican Hass avocados. Con-sumers in these areas are less likely to knowthe various ways avocados can be used or toknow how to store, ripen and cut the fruit.

“There is still growth to come in the Mid-west market and Northern United States,”says Bill Tarleton, director of marketing andcommunications for Mission Produce Inc. inOxnard, CA. “They know what guacamoleis, but they don’t eat avocados on sandwich-es in place of mayo, or in salads or makeavocado soup.”

Within these larger regions, smaller mar-ket trends are important. Florida, forinstance, has distinct differences betweenNorth Florida, where fewer avocados aresold, and the Hispanic cities in South Flori-da, where tropical avocados are staple fruits.

“If a retailer is in a market where a con-sumer is a heavy-to-medium user, the key isto increase visibility,” explains EmilianoEscobedo, marketing director for AvocadoProducers and Exporting Packers Associa-tion of Michoacán, (APEAM) based in Uru-pan, Michoacán, Mexico. APEAM is a non-profit organization that represents 4,500growers and 29 packers in Mexico’s mainavocado growing state. “You can increasevisibility with an end cap or an island dis-play with contrasting colors, like those oftomatoes or onions. Displaying them withcomplementary products, such as tomatoes,will increase sales of both.”

M

E

R

C

H

A

N

D

I

S

I

N

G

R

E

V

I

E

W

M

E

R

C

H

A

N

D

I

S

I

N

G

R

E

V

I

E

W

Phot

oco

urte

syof

Broo

ksTr

opic

als

LLC

Florida avocados are typically larger than Hass avocados and they contain less fatand calories.

avocado dips. Unlike green avocados, theHass avocado also changes colors as itripens, with the pebbled skin morphing intoa darker greenish-brown. This helps con-sumers choose the perfect fruit. Additional-ly, it stands up well to shipping and han-dling, providing the cold chain is main-tained from packer to retailer.

“The Hass avocado has the best flavor, along season and an easily merchandised sizerange,” asserts Rob Wedin, vice president of

sales and fresh marketing for Calavo Grow-ers Inc., in Santa Paula, CA.

But Hass avocados aren’t the only fruitavailable. Along the East Coast, consumershave traditionally purchased Florida avoca-dos. These tropical avocados are typicallymuch larger than Hass avocados with asmooth bright green skin. They contain lessfat and calories, making them perfect choic-es for health-conscious consumers who liketo serve sliced avocados either as a stand-alone items or in salads. Although they are aseasonal product, Florida avocados are avail-able throughout the United States.

Avocados are available processed intoguacamole and other dips. In the past,processed guacamole dips relied on oils andother fats to achieve a consistent texture andshelf life. Today, however, new, high-pres-sure processing techniques make it possibleto produce a processed guacamole that isalmost pure avocado and includes tomatoes,onions and spices. These dips must bestored in cool cases and are typically offeredin either the produce section or the delialongside other prepared dips.

“Processed guacamole has improvedenormously,” says Wedin. “It used to be afrozen product. With the new, ultra high-pressured system that pasteurizes it, youcan add fresh tomato, onion and garlic andmaintain a shelf life of 40 days.”

BUILD D ISPLAYS TO MATCH DEMOGRAPHICS

Avocado growers and trade groups have

The size of the

display, and even the

ripeness of the fruit,

depends on the

details of the market

itself.

Page 147: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 98

Page 148: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9148

only hard fruit at the store, and consumershad a difficult time. These days, all the bigproducers have ripening programs wherethe fruit is ready to eat that day or in thenext few days.”

Ripeness was once a consistent obstacleto avocado sales. Only the most experiencedconsumers will buy a green avocado, andonly because they know how to correctlyripen the fruit at home. Inexperienced con-sumers who buy green fruit are often disap-pointed when their avocados don’t ripen,and they are turned off from the fruit. Also,shoppers are prone to squeezing green fruit,which bruises the avocado and causesincreased shrinkage.

The advent of ripening programs directlyaddressed these problems. Unlike manykinds of fruit, avocados don’t start to ripenuntil they are picked and the seed warmsup. As they continue to ripen, they give offheat and ethylene gas, which hastens theripening process. Thus, bins or pyramids ofavocados held at room temperature willripen very quickly and unevenly, leading toloss at the retail level.

Cold-chain management is essential atevery step of the process to control ripening.In the field, avocados are moved from thetree to a chilled room as quickly as possible.Then, they are moved to ripening roomsbefore shipment to retailers. In the sealedripening rooms, avocados are exposed tocontrolled levels of ethylene gas.

M

E

R

C

H

A

N

D

I

S

I

N

G

R

E

V

I

E

W

M

E

R

C

H

A

N

D

I

S

I

N

G

R

E

V

I

E

W

By contrast, in the medium- or light-useareas, consumer education plays an integralrole. Promotions can include guacamolerecipes, as well as tips for using, storing andripening avocados.

Demonstrations are also an effective wayto introduce avocados to consumers. Storeemployees can demonstrate how to cut, pit,peel and slice the fruit, and then servefresh, ripe fruit to shoppers. Guacamole canalso be made on-site and offered with a bagof tortilla chips, which will increase sales ofboth items.

Offering a variety of avocado sizes is alsoa good idea. The standard Hass avocado forsingle-sale is the 48, meaning there are 48

avocados in every 25-pound box. Each fruitweighs about half a pound. Both larger andsmaller varieties also exist. Smaller fruit isoften packaged four to five avocados perbag, especially in high-consumption areaswhere they are a regular part of the diet.Bagged fruit represents about 15 percent ofthe avocado market, says Avi Crane, presi-dent and CEO of Prime Produce Interna-tional LLC, in Orange, CA.

“If you have a mixed display of all threesizes, you’ve got it covered,” Wedin states.“The bigger fruit is usually in shortest sup-ply, so the price is higher while the displayis smaller.”

Haggen’s Reynolds stocks mostly 32s and60s instead of the standard 48s. “If you carryjust the 48s, it’s harder to carry two sizes,”he advises. “My customers like the big avo-cados, so I make sure to get them evenwhen they’re scarce.” He’s also hoping tosteer consumers toward the larger avocadosby permanently stocking 32s. “You make

more at the checkout and you’ve got fewerto sell,” Reynolds explains. “Hopefully,they’ll eat more avocados. If you buy bigones, you’ll have more to eat because theseed size is about the same as those foundin smaller avocados.”

Florida avocados tend to be much larger,although the price per pound is about thesame, so each individual fruit is moreexpensive. In some areas, especially in theNortheast, where Florida avocados werestandard until recently, a mixed display ofFlorida and Hass avocados often sells well.

Consider several tips when displayingavocados, as they can be a prickly fruitwhen not handled correctly. For example,they ripen quickly once warm, and con-sumers will shy away from a bin filled withoverripe or mushy avocados. The ripeningprocess is hastened by the presence of eth-ylene gas, which is produced in abundanceby bananas and apples. Thus, avocadosshould not be stored at room temperaturenear displays of bananas or apples.

REDUCE LOSSRipening programs are one of the biggest

factors driving increased avocado sales inrecent years. These programs enable pack-ers to deliver ripe, ready-to-eat avocados toproduce departments.

According to Mission Produce’s Tarleton,the company was among the first to developthis type of program. “In the past, there was

“If you have a mixed

display of all three

sizes, you’ve got it

covered. The bigger

fruit is usually in

shortest supply, so

the price is higher

while the display is

smaller.”

— Rob WedinCalavo Growers Inc.

Hass Avocado Board’sMarketing Efforts

Hass avocados in the United Statescome from California, Mexico orChile. The industry is represented by

the Irvine, CA-based Hass Avocado Board(HAB), which recently formed a marketingcommittee to help regional groups coordi-nate their promotional efforts. “The think-ing behind the HAB is one of communica-tion between the different groups thatallows for more organized planning,” saysJan DeLyser, vice president of marketingfor the California Avocado Commission(CAC) located in Irvine, CA. “The marketingboards work together to fund promotions.”

The regional organizations, includingthe CAC, the Mexican Hass Importers Asso-ciation (MHAIA) and the Chilean AvocadoImporters Association (CAIA), each con-tribute funds to the HAB, which then redis-tributes the money and helps organize pro-motions.

“The HAB has done a great job,” says

Ed Figueroa, a category manager of avoca-dos, for L.G.S. Specialty Sales Ltd. in NewYork, who also serves as a director atMHAIA and HAB. “The 2008 Super Bowl isa great example of that. Each group wasmarketing Hass avocados, but no twogroups were marketing in the same place.”

The groups also continue to marketindependently. Mexico, which is the largestsupplier of avocados to the U.S. market,offers fruit on a year-round basis, while Cal-ifornia and Chile have complementary har-vest seasons.

DeLyser says the board’s marketingefforts have been a success. “If you look atthe growth in availability of avocados overthe past five to eight years, it’s exploded.But despite the extensive growth in vol-ume, we’ve kept the value of the productsteady. That’s because of increased mar-keting. Avocados still make good profits forthe retailers.” pb

Page 149: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Whatever your role in the produce industry, the key to ablossoming bottom line is knowledge. About major trendsand developments, and the people behind them.... Aboutnew sales opportunities around the world.... New packagingand transportation technology.... New ideas in marketingand promotion.... New retail strategies.... New equipmentand services.... New techniques for managing individualbusinesses, and their personnel, more efficiently.

And your Number 1 source for all of the above is PRODUCEBUSINESS, the industry’s only monthly business magazineserving all buying segments. And the most widely read ofany publication in the field. If you’re not receiving everyimportant issue, call to start your subscription withoutdelay. It’s the only way to be sure you’re getting all theknowledge you need. And growing the way you should.

HOW TO MAKE THINGS GROWHOW TO MAKE THINGS GROW

Page 150: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9150

MERCHANDISING

REVIEW

MERCHANDISING

REVIEW

they are offered at lower prices.“A lot of the promotion depends on the

pricing,” Reynolds adds. “If it’s good, I’ll runpromotions every two to three weeks.”

PROMOTE AVOCADOS OFTEN

In general, avocados are wonderfullyeasy fruit to promote. Although they arenationally available, avocados are stillviewed as a specialty, and even exotic, fruitin many markets. Their close associationwith Mexican and Latino food, and theirreputation as a health food, lends them anupscale air. Better yet, because they are nowavailable year-round, they can occupy a per-manent piece of real estate in the producesection, increasing sales and allowing formore consistent promotions.

A number of industry groups are activelyworking together in an effort to increaseavocado consumption. In 2008, the industryspent $40 million on advertisements nation-wide to publicize the health benefits andversatility of avocados, according to Crane.At the retail level, avocado promotion is fre-quently tied to special events, especiallySuper Bowl and Cinco de Mayo, when avo-

Most of the large packers will sell avoca-dos at any stage of ripening, from hard,green fruit to ready-to-eat fruit, dependingon their customers’ preferences. Most agree,however, that the key to increasing salesand decreasing loss is to stock ripe fruit.“Offering ripe avocados is the best way tosell more fruit,” says Crane, Prime Produce’sCEO and president. “Consumers want avo-cados that are ready to eat that night.”

As ripening programs have taken off,some packers have gone one step further.Calavo, for example, offers a VIP program inwhich the packer measures the internalpressure of avocados to guarantee that onlyconsistently ripe fruit is packed. Other pack-ers offer some fruit that is ready to eat thatday and some that will ripen in a few days.

The success of the ripening programsdepends on communication with con-sumers. “Ripe Now” stickers are usedthroughout the industry to let shoppersknow that the fruit they are holding is readyto eat that day. The stickers also reducespoilage because consumers are less likelyto squeeze the fruit and damage it. “Nodoubt about it, ripe fruit is the best thingyou can do,” asserts Calavo’s Wedin. “Itprobably triples sales over non-ripe fruit.We’ve found that customers rely on thestickers and they stop pinching fruit.”

Some experienced produce buyers inhigher velocity markets still like to buyhard, green fruit in addition to their ripefruit. This allows them to offer firmer avoca-dos for consumers who want to wait a fewdays before eating their fruit. “We have aformula for retailers,” reveals RankinMcDaniel, vice president of the McDanielFruit Co. in Fallbrook, CA. “We suggest theyrun multiple displays with multiple sizes ofripe fruit and include a portion of firmerfruit so the consumers can pick an avocadothat is ready to eat immediately and onethey can eat tomorrow.”

CORRECTLYPR ICE AVOCADOS

Successfully pricing avocados dependson the market and the industry’s supply.There is a limit to how expensive avocadoscan get before consumers begin to shun thefruit. This is because avocados are typicallyimpulse purchases, especially outside ofheavy-use markets. “If you can price an avo-cado at less than $1.50, it’ll sell,” Haggen’sReynolds states. “But people will resist if itgets above that. They begin to classify it asan extra item.”

However, the California Avocado Com-mission’s DeLyser reveals that price promo-tions on avocados are highly effective andconsumers will come looking for avocados if

“A lot of promotion

depends on the pric-

ing. If it’s good, I’ll

run promotions

every two to three

weeks.”

— Lee ReynoldsHaggen Inc.

cados are used in guacamole. However, the calendar is full of dates

that can be used to promote avocados. “Ialways try to do Thanksgiving and Christ-mas and Super Bowl, obviously,” saysReynolds. “I like to do a Fourth of July pro-motion, but it’s tough because you onlyhave California avocados at that time andwe’re waiting for the Chilean avocados tocome in.”

Avocado trade groups run their owngeneric promotions, often tied to the regionwhere the fruit originated. Both Californiaand Mexican avocados are promoted basedon their origin. For example, APEAMrecently completed a three-month market-ing campaign that encouraged the use ofMexican avocados. The association’s effortsresulted in a 79 percent increase in Mexicanavocado sales in Texas and a 25 percentincrease in Chicago at stores that promotedavocados during the campaign. Additional-ly, Mexico secured the category leadershipposition for a second year in a row by sup-plying 70 percent of the avocado market.“Many times, people going to the storearen’t looking for avocados from Mexico,but if they see that sign, they might buymore,” states Escobedo, marketing directorfor APEAM.

Florida avocados are marketed under thebrand SlimCado, which was developed byBrooks Tropicals LLC in Homestead, FL topoint out the health benefits of Florida avo-cados, reveals Mary Ostlund, director ofmarketing. SlimCados contain 35 percentfewer calories and one-third less fat thantheir Hass counterparts. “We tell people thatif you want to make guacamole, use a Hassavocado because you’re not concernedabout the extra fat in a party dip. But if youwant to eat more avocados on a regularbasis, use the SlimCado. It still has the avo-cado taste, but it’s less oily. This is a way togrow a new product.” pb

Page 151: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

T he San Francisco Bay area is home to about 7.2 million people,765,000 of whom reside in the city itself, according to the U.S.Census Bureau.

The universities and high-tech industries in the region make for a largepopulation of highly educated consumers. At the same time, the region haslong been multicultural, and more than a third of San Francisco’s inhabi-tants are foreign-born. Strong Asian and Latino elements add their own fla-vor to a mainstream culture that is, in itself, diverse. Through the years,various population pulses have brought a range of influences, includingItalian culinary traditions and a hippie catalyst to organic eating.

The strength of the food culture has a powerful influence on both SanFrancisco’s terminal markets: the San Francisco Wholesale Produce Mar-ket (SFWPM) in the southeastern region of the city and the Golden GateProduce Terminal (GGPT), which is a few miles further beyond in thecommunity of South San Francisco.

The vibrant restaurant scene in San Francisco has long been critical tothe wholesale infrastructure in the Bay Area. Still, in the 1970s and 80s,terminal markets seemed destined to decline as food retailing consolidatedand brought wholesalers less business. Yet, in the Bay Area particularly,changing demographics, consumer interest in new kinds of food and anincreasing awareness of the nutritional benefits of fruits and vegetableshave helped to reinvigorate independent grocers, and through them, theterminal markets as well.

San Francisco’s independent grocers in the Bay Area serve many ethnicpopulations, but not exclusively, as cross-shopping is common and influ-ences cross demographic lines. Thus, a greengrocer in a more mainstreamcommunity is likely to carry a wide range of peppers and Asian vegetables,such as Bok Choy, as everyday items. In the meantime, it’s more commonthan ever to find customers from other ethnic backgrounds shopping inLatin or Asian grocery stores.

But it isn’t all about ethnicity, either. San Francisco’s restaurants andfood retailers have built upon an early interest in organics to embracebroader trends in sustainability and promote locally grown produce. “SanFrancisco dining is very seasonal, up to a point where it almost becomesamazing,” says Michael Sullivan, chef and partner at San Francisco’sSpruce. “People look at cuisine differently here than the rest of country.”

The terminal markets are evolving with the SFWPM reviewing plans fornew and expanded facilities in a project planned to launch in 2013. In themeantime, it’s weighing in on local issues. Some activists have questionedthe contribution of wholesale markets to a local food culture that favorsgrower-direct deliveries to neighborhood restaurants and farmers’ markets.In response, Michael Janis, general manager of the SFWPM, noted that themarket wholesalers are vital to local grocers who supply a breadth anddepth of produce to neighborhoods and even those growers who do adirect business as a distribution channel they depend on as they grow.Looking to demonstrate that wholesale markets aren’t antagonistic to directdistribution, the SFWPM is even considering establishing a farmer’s marketwithin its own facilities. At the same time, business is diversifying at theGGPT to serve a rapidly evolving clientele, sometimes speaking new lan-guages, sometimes looking for new services including that of the brokers,

San Fran SophisticateSan Francisco terminal markets will continue to be in high demand,

despite a troubled economy and industry happenings.

B Y M I K E D U F F

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 151

SAN FRANCISCO MARKET PROFILE

Page 152: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9152

who have proliferated in the facility.The scene in San Francisco suggests that

the terminal markets will be in heavy demanddespite industry gyrations and macroeconom-ic stumbles.

Changing DemographicsFood is a significant part of social life in

the San Francisco Bay Area with restaurantsand small produce-centric groceries critical tothe local culture, as are the pair of terminalmarkets that serve them.

The revitalization of smaller grocery andproduce markets in and around the Bay Areahas been a boon to the GGPT in South SanFrancisco, states Peter Carcione, president ofCarcione’s Fresh Produce Co. Inc. “The littleguy is doing well now. This wasn’t the caseseven or eight years ago.”

Supermarket industry developments inCalifornia over the course of the currentdecade have helped put local small groceryand produce retailers on a more equal play-ing field with the big chains. “All the insur-ance rates went up. Workman’s comp wentthrough roof,” Carcione points out. “Now, thelittle guy can buy something from the whole-sale produce market, make a decent profit onit and still be under the big guys.”

Already a health-conscious region, theBay Area has embraced the nutrition messageconsistently reiterated by doctors and publichealth authorities, Carcione asserts. What’smore, an exploratory impulse has driven con-sumers to cross ethnic lines when shoppingand dining out, which eventually drivesdemand as consumers favor a wider variety offood beyond common staples.

“Neighborhoods are intermingled today,”Carcione states. “So the Chinese stores notonly sell Chinese vegetables but also butterlettuce. A few years ago, ethnic markets wereonly selling to their same ethnic crowd.”

Given all the interest, the wholesale mar-kets have become a more important resourcefor restaurants and independent produce and

Although organic sales may not be growingat quite the same pace they were a fewyears ago, the sector continues to

expand in San Francisco. For example, Earl’sOrganic Produce is developing two businessessimultaneously, according to owner Earl Herrick,one as a regional wholesaler delivering anywherewithin a 1-day turnaround drive and another as abroker shipping beyond that range.

The company is also working with Safeway tosupplement its existing organic produce distribu-tion as it expands in the natural products arena.Essentially, Earl’s is acting as a facilitator, Herricksays, working with the supermarket chain onshorts and to ensure a consistent supply.

The economy hasn’t yet had a significantimpact on Earl’s business, although a bit of soft-ness has suggested itself. “We had a goodThanksgiving. We may have felt it a little in theChristmas season, but nothing serious,” statesHerrick. “We didn’t lay anyone off. San Franciscois a very mature organic market. That being said,the competition has grown and you’ve seen mar-ket share find its own level. You will see cus-tomers go and some new ones come, but it keepsus honest.”

According to Herrick, early signs suggest thatconsumers will cut back on higher-priced prod-ucts before more commonplace organic purchas-es, such as “the imported cherries at $10-a-pound rather than Navel oranges at $1.99. Butwe haven’t been able to make sense of that alto-gether yet. People are a little more conservative,definitely. People who were buying organic allalong have a strong bond, though. If that’s whythey buy organic, then people who still haveenough money are still buying. A small propor-tion can’t afford to do that anymore. Price doesmatter, but there is an understanding of the truecost of food among people who buy organics.”

Organic consumers in San Francisco also tendto support grower-direct delivery to restaurantsand farmers’ markets. The debate over the role ofwholesale produce markets in supplying organicand local produce has been relatively fierce inSan Francisco.

The produce markets are making a case thatthey have an important role as a secondary dis-tribution point for smaller growers, who other-wise go directly through restaurants or theplethora of farmers’ markets that operate in SanFrancisco’s neighborhoods.

Herrick admits he doesn’t take a positionagainst growers going direct, and even encour-ages some smaller ones to do so. Ultimately, hebelieves the debate is healthy, and the diversityof supply still sweeps attention in the right direc-tion, generating more interest in produce and anunderstanding that wholesalers contribute to theavailability of wholesome food.

In the region around San Francisco, organicgrowing continues to expand, which has createdopportunity for innovative businesses. PacificOrganic Produce, for example, today combinestwo operations that target the natural food anddrink market. In one, it’s the San Francisco-basedmarketing office for over 100 growers from Cali-fornia, Washington and Latin America. For 15years, it has helped generate demand by promot-ing produce — now mostly under its own label— and helped growers move products quicklyand directly to wholesalers and retailers.

According to Pacific brand manager SaraClow, “We package as much as we can under thePurity Organic label, but we continue to workwith some growers and support their establishedlabels such as with Twin Girls Farms. Some peoplewill still seek Twin Girls Farms in market so it’s stilla label.”

Pacific Organic ships to major chains includ-ing Whole Foods and Safeway, but its customersare wide-ranging and include wholesalers, andnot just in the United States. It has a major busi-ness in Canada, ships apples to the United King-dom and citrus to Asia.

While organic is strongest in particular hotspots, business continues to gain for the compa-ny and its growers, notes Clow. In part, that’sbeen based on a shrinking differential betweenconventional and organic products driven by theexpansion of the grower network. “Prices are get-ting smaller based on the most basic laws of sup-ply and demand.”

Pacific Organic’s other major operation is itsgrowing Watsonville, CA-based juice business,which has continued to expand in retailing byadding the Duane Reade drug store chain in theNew York Metropolitan area to their distributionpoints. This is based on a decision to aid growerswho were dealing with a larger volume of culls astheir businesses expanded.

Clow asserts that juicing provides a morelucrative alternative to deal with the 15 percentor so of product that doesn’t meet standards.These days, Pacific Organic is working to expandavailability of key items, such as apples, acrossthe calendar.

In contrast to the demand for locally grownand seasonal product, many consumers continueto look for favorite products year-round. In aneffort to meet their needs, distributors are work-ing to find better product internationally, andworking to improve logistics to meet the high-quality demands that local and seasonal prod-ucts have established.

Pacific Organic is tapping organic sources incountries including Argentina, Chile and Mexico.“We want to fill out gaps to provide consumersgood quality organic products consistently yeararound,” Clow says. pb

The Mechanics Of OrganicsSAN FRANCISCO MARKET PROFILE

“Neighborhoods are

intermingled today. So the

Chinese stores not only sell

Chinese vegetables but also

butter lettuce. A few years

ago, ethnic markets were

only selling to their same

ethnic crowd.”

—Peter CarcioneCarcione Fresh Produce Inc.

Page 153: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

sumer is changing a little bit.” The evolutionof the market is also making sourcing a littlemore complicated. “We now have more kindsof products to sell,” Franzella says.

As the market has evolved, so has Franzel-la’s staff, which includes salesman AbelAlvarez, whose responsibilities include serv-ing Spanish-speaking customers. Alvareznotes that the product range at Franzella hasindeed shifted with the client base, which alsoincludes restaurants and shorts-seeking super-markets with increasingly diverse needs. Sotoday, Franzella prides itself on the range ofchiles it offers on a daily basis as part of itsAsian and Latin vegetable selection.

Confronting ChallengesYet, not every factor influencing business is

indigenous to the produce world, and Alvarezremarks that the economy seems to be

impacting about 20 percent of Franzella’sbusiness. The slowdown is unpredictable,with customers ordering somewhat closer toneed rather than making more drastic adjust-ments while simultaneously asking for a fewspecial orders or special imports, concentrat-ing on what’s in season and in good supply.

Philip Franzella, Franzella’s president,adds, “We’re in a good spot, but money’stighter. People aren’t buying things they don’thave to replace. People shop around more.They’re stretching dollars. As a result, grocersand chains aren’t buying too far ahead.”

Franzella’s desire to serve the gamut of dis-tribution options is evident in the brokerage itcurrently operates from a second facility atGolden Gate. Nearly alone in the marketwhen it began operating a few years ago, JimKramer, a brokerage account manager, admitsFranzella brokers have seen competitionspring up and become more intense, makingservice and relationships increasingly impor-tant. As economic factors impose themselves,maintaining relationships becomes even morecomplex as customers’ demand for high quali-ty is tempered by a need to hold down cost.“They still want quality, but price has becomemore important,” Kramer says.

Operating out of a facility located justsouth of the Golden Gate market, Gilbert

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 153

SAN FRANCISCO MARKET PROFILE

“Ethnic customers are buying

more than ever before, and

we have less of the

traditional American stores.”

—Joe Franzella Franzella Produce Inc.

Rea

der

Serv

ice

#78

Rea

der

Serv

ice

#10

0

grocery retailers who have built their business-es around the availability of high-quality fruitand vegetable products.

“The most important advantage of thewholesale produce market is that the buyercan come down, look at it and taste it beforebuying it,” says Carcione. “The big stores aredoing the best job they can buying goodlabels and the quality is mostly good, butthere’s an advantage to being able to pick up apiece of fruit and look at it. We had can-taloupes this morning from Guatemala. If youdidn’t know, you wouldn’t believe it. Thebuyer has to be able to see what’s available,and this option makes produce departmentsmore exciting.”

Business on the GGPT has gotten morecomplex, and Franzella Produce Inc. hasfound ways to respond. Joe Franzella, a sales-man, and part of the younger generation at thelong-time family operated San Francisco pro-duce wholesaler, notes, “Ethnic customers arebuying more than ever before, and we haveless of the traditional American stores.” Thisevolving demographic results in a number ofimplications. For one thing, ethnic customersmay have a particular sense of how qualityought to balance with cost. As a result, “Wemight have more No. 2s,” Franzella admits.“We still have to have good stuff, but the con-

Rea

der

Serv

ice

#86

Page 154: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9154

Papazian, president of Lucky Strike Farms Inc.,observes many developments that are impact-ing local produce-based businesses, with theeconomy being just one. Lucky Strike’s busi-ness revolves around growing and distributinglettuce and carrots harvested in California andpoints further south into Mexico as the seasoncotinues to progress.

Lucky Strike is taking a cautious approachto growth, although it’s now exploring the SaltLake City market. However, to remain effec-tive, the company has to improve its standingin the markets it already supplies. “It’s whounderstands the customers best,” Papaziansays. “They want your input. We learn theirbusinesses well enough so we can counselthem on what they need to do, help themthink through problems and compete in themarket. It’s not just about pricing, but logisticsand how can we help our guys compete.”

While most produce wholesalers and bro-kers in San Francisco claim their businessesare only beginning to feel the pinch from therecession, Amy Richardson, vice president ofJohn Demartini Co. Inc., reveals demand hassuffered significantly in the economic down-turn as the restaurants who buy from the com-pany have seen their business decrease. Like-wise, some grocers have seen demand beginthe shrink and supermarkets have less need tobuy shorts, all of which hurts the company’skey citrus business. Thankfully, the company’sFresh Express and tofu businesses have helpedsustain it, observes Richardson, but moreaggressive action has become important.“We’re trying to find new business and look-ing for new customers.” The SFWPM slot nextto John Demartini is open at the moment, andshe hopes talk of a major player from theSouth San Francisco produce market taking it

will prove true. Its presence would generatemore traffic at the John Demartini storefront.

John Pizza, president of Washington Veg-etable Co., reveals his business has actuallybeen impacted by the economy in Japan. Hisexport business is centered around the PacificIslands, including the Marshalls, NorthernMarianas, American Samoa and Palau, localesthat have seen their regular Japanese touristtraffic drop as the global economy has sput-tered. Overall, though, Pizza said his business,based on commodity and specialty items soldto grocery stores, has continued steadily. Hisinventory is designed to service a range ofindependent grocers, including Latino andAsian specialty stores.

Pizza notes that despite cross-shopping ofvarious grocery stores by multiple demograph-ics, specialty wholesalers that service ethnicoutlets will continue to have a place in themarket. Distinctions continue to exist, particu-larly in how ethnic consumers want to shop.“If you go into Hispanic areas in San Francis-co, like the Mission District, you are going tofind an Hispanic grocery model that is moresimilar to the model you would see in Mexi-co,” Pizza says. “The Hispanic population inthe Mission District is more likely to shop atan Hispanic grocer than Safeway.”

Pizza said a major upcoming consideration

Peter Carcione of Carcione’sFresh Produce Co. Inc.

Leo Rolandelli of JacobsMalcolm & Burtt

Gilbert Papazian ofLucky Strike Farms Inc.

Stanley Corriea of Stanley Produce Co. Inc.

SAN FRANCISCO MARKET PROFILE

Rea

der

Serv

ice

#81

Rea

der

Serv

ice

#88

Page 155: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

for San Francisco wholesalers regards regula-tory demands and information processingassociated with issues such as country-of-ori-gin labeling (COOL). Wholesalers need to geton top of those issues to help their customerswho turn to them for support.

In the developing Bay Area market, pro-duce distributors face several issues, but theycontinue to hold their own, a testament totheir diligence. “Change is constant, but evo-lutionary,” states Grant Hunt, president ofGrant J. Hunt Co., located in Oakland, CA.“Hopefully, we’ve adjusted to the times.”Indeed, Grant J. Hunt is celebrating its 75thanniversary, “so we’ve been doing somethingright,” he adds. “The bottom line is this is asimple business. You recognize what con-sumers want and fill it.”

Hunt identifies food safety, for example, asa critical trend going forward, and the compa-ny has invested in upgrading systems to meetmore stringent international standards. Sus-tainability will also have a powerful impact onthe produce industry in San Francisco particu-larly, given local consumer interest in the sub-ject. Hunt cautions that produce industry par-ticipants have to weigh in on long-term issuessuch as sustainability. He urges support ofindustry sustainability standards and is againstnationally determined criteria polices. “Theyshould be fluid and changing market stan-dards,” he insists.

Leo Rolandelli, president of Jacobs Mal-colm & Burtt, says another issue that’s becom-ing more urgent is the impact internationalcompetition has been having on local grow-ers. Asparagus, a major business for the com-pany, is just one of the crops being affected. Atthe same time, low rainfall totals are making ithard for many growers to maintain their pro-duction volume and quality.

Still, the economy bears watching as someare concerned that more expensive specialtyitems might bear the brunt of consumer thrift,Rolandelli notes. Many higher end productsare holding their own right now, and theJacobs Malcolm & Burtt asparagus business isdoing all right. Fortunately for the company,big-box retailers, such as Costco, have been

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 155

A consensus has not yet emerged amongwholesalers and other distributors regarding themanner in which the recession will impact theproduce business over the next year. Point of viewis influenced by market position, of course. Somecommodity sellers and brokers predict that high-end specialties and value-added products will bemost effected, and suggest that consumers willturn more to bulk staples.

On the other hand, specialty fruit and veg-etable providers note that many high-end restau-rants and gourmet retailers continue to see rela-tively strong traffic, even if some are off a bit.They contend consumers will continue to treatthemselves, even if they shift a little more by eat-ing at home the majority of the time.

Still, produce wholesalers and distributors aretaking steps to cope with a gradual softening ofdemand. Everado Alvarez, a salesman withFranzella Produce Inc., says the wholesaler itselfhas become more cautious about its inventory,keeping its assortment trimmer than in the recentpast and just a little less deep to cut back onshrink in the softer environment. Yet even thoughFranzella is trying to keep business tight, thecompany will adjust to the degree that it haswhat customers are actively seeking. “We selleverything and try to have everything we canhere,” Alvarez states.

Like others on the market faced withencroaching credit and economic concerns, Stan-ley Corriea, president of Stanley Produce Co. Inc.,admits he has tightened up on payment terms asthe recession has deepened. “People we sell gotused to their ways. They got used to being 30 or40 days out, and we used to say, ‘Not a problem.’

Now, it’s 30 days or we won’t sell you. It’s affect-ed our relationship with people we’ve workedwith for years and years.”

David Camarda, vice president of North BayProduce Co. Inc., expresses that San Franciscogenerally has become more conscious of therecession. “It’s not just produce,” he says. “Theeconomy is on everyone’s mind right now, andeveryone is making adjustments. Credit’s tight.You have to be on top of receivables. Peoplewe’ve had on 30 days want 60. We can’t do it.”

Camarda has cut back on the frequency ofdeliveries to some of his restaurant customersfrom six to seven days a week to three to five. Thechange has not only been accepted by cus-tomers, but also appreciated. “They don’t have toinvest the energy on accepting another load andchanging prices,” Camarda explains.

Leo Rolandelli, president of Jacobs Malcolm &Burtt, says the market will carefully watch theObama administration’s efforts to bolster theeconomy, while simultaneously gauging the con-sumer response to the recession and how theymust react. “Produce prices are lowering in gener-al,” expresses Rolandelli. “Growers realize theyhave to price their products to move.”

Even upscale grocery chains, such as SanFrancisco, CA-based Mollie Stone’s Markets andWhole Foods, are being forced to reassess theirassortments and the price elasticity consumerswill tolerate on food, in part because of the pro-liferation of farmers markets offering bargainalternatives on high-quality produce items in therecession. “They are going to have to be morecompetitive with prices, and I would even putSafeway in that group,” Rolandelli says. pb

Will A Faltering Economy Flummox The Produce Industry?

Lauren and David Camarda of North Bay

doing relatively well in the recession. “We doa lot of business with those people,” he says.

The Importance Of FoodserviceGiven its diverse, educated population, it’s

not surprising that San Francisco’s food cultureis vibrant. Restaurants have played an impor-tant role in keeping the produce business rela-tively strong as the economy has weakened.“We see foodservice as the greatest, mosteffective sampling mechanism for our indus-try,” Hunt says.

William Wilkinson, president and co-owner of Greenleaf, a foodservice-orientedsupplier in the SFWPM, compares the BayArea to the South of France in terms of theimportance of food culture, “It’s a place wherepeople take a great interest in food. It’s a foodtheater in many cases.” Wilkinson credits

restaurateur Alice Waters, who founded ChezPanisse in Berkeley, just across the bay fromSan Francisco, with setting the tone of theregion’s food culture. Her restaurant empha-sizes informality, but is serious about sellingfresh food with a menu that changes everyday based on what’s fresh.

Greenleaf has evolved with the local foodscene, and was a pioneer in developing saladmixes for the American market, Wilkinsonpoints out. Today, the company not only deliv-ers daily from a catalog of 1,100 produceitems — 6,000 items are available year-round— but provides dairy, bread, frozen food andspecialty products, too.

Business remains strong because the pro-duce industry remains a committed contribu-tor to the region’s food culture. In fact, Wilkin-son believes that the foodie culture has helped

SAN FRANCISCO MARKET PROFILE

Page 156: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9156

follow that with us. By mid-February, we’ll seelocal asparagus from Stockton.”

Cooks’ customers also like to take advan-tage of local events and emphasized Asianitems as the Chinese New Year approaches.Cooks offers vegetables with shoots, for exam-ple, which symbolize longevity in Chineseculture. “We use a greengrocer’s approach,”Tombari explains. “Every week, we bring newstuff to people to keep their creative juicesflowing.” In fact, Cooks is so dedicated tokeeping its chefs informed about what’s in sea-son, it produces a newsletter with weeklytrends. The company even sends out new andnovel items on its trucks for chefs to sample.

Cooks is among the restaurant suppliers

SAN FRANCISCO MARKET PROFILE

Th e r e s t a u r a n t scene in downtownSan Francisco remains intensely cre-ative. Despite beginning to feel the

impact of the economic recession, chefs con-tinue to afford themselves with a range ofresources to keep customers eating out.

Joshua Nudd (below right), executive cheffor the Mandarin Oriental Hotel, located a cou-ple of blocks off Market Street and featuringthe restaurant Silks, says the preference fororganic and local produce in San Franciscoencourages restaurants to explore those ingre-dients, which are amply available throughrestaurant distribution, as well as from farmersmarkets. Healthful eating is also an issue, mak-ing the role of fruits and vegetables in diet and

restaurant dishesmore prominent.

Orlando Pagan,chef de cuisine, (left)reveals he arrived atthe Mandarin Orien-tal several years ago

with a background in French and Italian cuisine,and quickly had to learn Asian cooking, giventhe hotel’s emphasis on combining Pacific Rimand Western styles. That penchant suits themarket nicely. The Bay Area has long been acrossroads where East and West meet, and thelocal food culture is informed by that intersec-tion. To that end, Silks’ menu offers dishes,such as Braised Pork Belly with Black TrufflePotatoes and Matsutake Mushrooms.

Nudd admits that despite the relativestrength of the restaurant’s scene, the econo-my is having an impact. As a result, Silks isoffering customers options off the normal 3-,4- and 8-course menus in part to accommo-date its normal business customers who havebeen subject to office cutbacks. “Expenseaccounts are getting restricted and eliminated,”he says. pb

Restaurants Remain Relevant

Building Successful Relationships for Over 30 Years!

Apples, Pears, Cherries, Grapes,

Soft Fruit, Onions & Potatoes

Organic & Conventional

Craig Campbell, Rodney D’Acquisto,

Gus Navarro, Jason Fonfara,

Alberto Navarro, Fred Kasak,

Gina Parodi-Nelson, David Moen,

and Norbert Bothello

415-864-8588fax 415-864-0380

San Francisco, CA

www.cdsdist.com

Rea

der

Serv

ice

#10

7R

ead

erSe

rvic

e#

106

shield San Francisco from the worst effects ofthe recession. “Things are going alright in SanFrancisco,” he admits. “We’re feeling it a little,like everybody else, but maybe less here.There is more of a commitment to eating out.”

In line with Grant Hunt, Stanley Corriea,president of San Francisco, CA-based StanleyProduce Co. Inc., agrees food consciousnesshas made food safety a bigger issue over thepast few years, as consumers have seen moreproblems affecting produce. He believeswholesalers must take responsibility for thedistribution chain up to and through theirfacility because consumers are asking ques-tions and expect diligence. “There are con-cerns about mixed salad and spinach. Withthe spinach scare last year, the whole coldchain has become a bigger issue and ensuringthings are properly maintained in the coldchain the whole time,” explains Corriea. “It’simportant for the consumers. Somethingcomes along and people panic; then it’s a lin-gering thing. If I’m thinking of buying wildmushrooms and I don’t know the source, I’mnot going to do it. No way.”

In his specialty business, which servesother wholesalers as well as restaurants, Cor-riea has seen a proliferation of interest inorganic and local products, in large partbecause of quality concerns. “Many end users,such as restaurants, are all going to local cui-sine now because they’re interested in what’sfresh and what’s available at good quality for agood presentation,” he observes.

While food safety is a long-term, institu-tional issue, the economy is one that hasbecome more pressing. “I think people arelooking for deals,” Corriea continues. “A littleof that has hit our business.”

Washington Vegetable’s Pizza provideslocally grown produce as part of his business.He notes, though, that locally grown is moreof a restaurant issue and that, depending onhow the term is defined, just about all thefruits and vegetables he carries are locallygrown seven or eight months of the year, sincemost nationwide production is coming fromnearby valleys. Still, despite ambiguities sur-rounding the issue, Pizza says local produce isbecoming more significant to some con-sumers, and wholesalers will need to addresstheir preference to the extent that it impactstheir customers.

Seasonal produce is a focal point for CooksCo. Produce, as its foodservice clientele asso-ciates local product with freshness and envi-ronmental friendliness. “Our customers arealways excited by the seasonal stuff,” declaresowner, Ric Tombari. “Now, they’re usingthings like sour oranges, cocktail grapefruits,mid-season mandarins. In about a week, we’llstart moving on to mid-season fruit, and they

Page 157: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 157

Coi Puts Produce On ParadeChef Daniel Patterson approaches his produce-centric cuisine with innovation and admiration.

B Y M I K E D U F F

I n a restaurant community where ideasoften drive, rather than inform, cuisine,Daniel Patterson, chef and owner of Coi

isn’t an ideologue. Rather, he is someonewho wants to integrate local values into theexperience of eating at his restaurant, and isaware that hospitality is his first duty.

Patterson’s dedication to ingredients isrenown, and fresh fruits and vegetables tendto have a strong influence on his dishes. Thesecome from many different sources, includinghis own home where he grows a variety ofgoodies, such as edible flowers. He also visitsfarms to harvest some of the fruits and vegeta-bles he includes in his constantly changingmenu. He uses more conventional sources,too, including local farmers’ markets, and hisreputation is to check the entire range ofingredients before incorporating them into hisfood. Ultimately though, he wishes to incor-porate the fruits, vegetables and other foodsavailable in the regions surrounding San Fran-cisco to excite his guests with the bounty ofthe surrounding environment.

Some restaurateurs have developed theirown ideas about what local food traditionsshould reflect. Patterson, though, starts withthe ingredients and then expresses their specif-ic qualities through a wide range of tech-niques rather than following a rigidly tradi-tional approach. The end result is a harmo-nious dish that has the capacity to surpriseand satisfy guests at his restaurant. “Our phi-

losophy is to use the best ingredients and thenkeep an open mind about how they can beused,” he says. “I don’t like dogma.”

Integrating the entire eating experience iscentral to Patterson’s approach to food. Theunderstated earth tones and natural woodtables that set the stage in Coi’s dining roomreflect the name of the restaurant — pro-nounced “kwa” — as well as the style of thefood. Customers can choose between twomenus, an 11-course tasting menu available inthe 28-seat dining room and a standard, 13-item menu served in the 20-seat lounge.

Patterson’s approach to food is experimen-tal. He explains he is constantly on the look-out for new ingredients and combinations hecan develop into fresh dishes. He has no setcriteria or agenda to apply, beyond seekingingredients he can combine in flavorful andunique way. Take a signature menu item, PinkGrapefruit, for example. The menu alerts din-ers that the grapefruit is combined with ginger,tarragon and black pepper, which suggests itwon’t be the typical scoop-and-slurp experi-ence. Yet that hardly hints at the preparation,which renders the grapefruit and its accompa-

SAN FRANCISCO RESTAURANT PROFILE

Daniel Patterson, chef and owner of Coi.

nying ingredients as a mousse.Patterson’s technique relies on the essence

of fruits and vegetables to generate the dishes.San Francisco food critic Michael Bauer rateda Patterson dish consisting of cherry tomatoessuspended in gelatinous tomato water toppedwith miniature basil leaves as the best tomatodish he had ever eaten. Young ArtichokesPoached in New McEvoy Olive Oil accompa-nied by Fennel, Puntarelle, Rose Finn ApplePotato and Rangpur Lime is another exampleof Patterson’s ability to combine the flavors ofvarious fruits and vegetables to create aunique dish guaranteed to surprise diners.

Patterson’s method in creating such dishesis broadly philosophical, and he refuses sim-ple designations. Rather, he combines con-cepts and flavors that interest him. He drawsheavily from the San Francisco scene, seekingwild mushrooms in the hills, but he has noillusions about some unspoiled wilderness tobe rediscovered or innocent garden to berevisited. Patterson believes the Bay Area cul-tural traditions are just as important as itsgeography, and that each one has intimatelyinfluenced the other. Thus, he feels free tocombine them as he chooses. “It’s more abouta connection to the land and how it informsthe diner’s experience rather than promotingan agenda,” he states. The end result Pattersonintends for diners at Coi is great food and afine night out, rather than instruction in cook-ing high mindedness. pb

saying they’ve seen little impact from theeconomy. In fact, the company is expanding,taking on more space adjacent to its currentfacility in the market, following fourth quarterand early 2009 sales growth. “Part of our cul-ture in San Francisco is that people want goodfood and expect great restaurants,” Tombarisays. “We haven’t seen any lack of business.We have a young enough population thatpeople realize there will be an upside to theeconomy eventually.”

Shing Ho, owner of Vegiworks Inc.,remarks that the demand for local and season-al produce is strong and comes from a rangeof his foodservice accounts, including theGoogle campus in Mountain View, yet many

accounts want key items available year-round,and he does his best to accommodate them.“We try to encourage customers to visit ourWeb site to help them plan menus thatinclude seasonal vegetables and, if that isn’tenough, we try to order something from Aus-tralia or Chile,” he states.

The dynamism of the San Francisco marketis a big plus for Vegiworks, Ho says, and so isthe close proximity to the California Valleysthat provide much of the produce that flowsthrough the facility. Challenges come fromfarmers going directly to restaurants and shift-ing priorities in the recession, both of whichhe is addressing. “For the past couple of years,we’ve seen the need for better customer ser-

vice, more hands-on customer service,” Hoadmits. “Given the economy this year, peopleare looking for more value, not the highestprices or lowest price, but value in general, sowe’re more hands-on trying to source local,sustainable produce, but at value.”

David Camarda, vice president of NorthBay Produce Co. Inc, says the company’sbusiness has been bolstered by the location ofmany of its clients. “Our customers are morein Sonoma and Solano County, and a lot ofthose areas are touristy and affluent.” In fact,North Bay’s business is good enough that thecompany decided to expand recently, takingwhat had been the Muffei space to distributeon the market. pb

SAN FRANCISCO MARKET PROFILE

Page 158: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9158

Andronico’sA longstanding institution revamps itself to stay current in the San Francisco food scene.

B Y M I K E D U F F

ANDRONICO’Swww.andronicos.com1200 Irving St. San Francisco, CA 94122Phone: 415-661-3220Fax: 415-661-5294

Hours: Daily - 7:00 AM to 11:00 PM

Andronico’s has been a stalwart institu-tion within San Francisco’s gourmetgrocery scene for 80 years, and when

the grocery operator decided to remodel itsflagship location to satisfy the expectations ofBay-Area consumers, it put produce centerstage. President and CEO, Bill Andronico, isthe third generation to run the operation sincehis grandfather, Frank Andronico, opened thefirst store in Berkeley in 1929. According toAndronico, produce represents what makesAndronico’s unique, along with freshness,variety and a particular attention to the act ofeating.

The produce presentation at the flagshiplocation is piled high and arranged in visuallyarresting displays that include undulatingracks in a vertical dry case, demonstratingAndronico’s commitment to innovation withinSan Francisco’s gourmet food scene.

Andronico’s was determined to make astatement with its remodel, part of a $15 mil-lion investment in enhancing the 8-unit chain.Completed over this past summer, the remod-eling effort is part of a major turnaround. Twoyears earlier, Andronico’s rolled back anexpansion initiative, shuttering two stores afterclosing a distribution center six months earlier.When it decided to undertake a remodel, itwanted to show San Franciscans it was backon its A-game. “We wanted to make a freshimpression,” declares Andronico. “We wantedto provide a reminder of what the foundationwas for our stores, and that’s one major reasonwe have produce in the front.”

Customers of the San Francisco storeencounter produce even before entering thestore. A fully encased enclosure guarding theentranceway is filled with mobile carts offer-ing apples, strawberries, pineapples, oranges,cantaloupes and other fruits. Inside, the show-case dry case is compartmentalized on a topand bottom tier, while the middle space isdivided by a shelf that snakes along in curvesdividing yellow, red, orange and green pep-pers among other items along its length.Andronico’s intentionally designed the displaywith visual impact in mind and arranged it ina determined color scheme that mingles greenitems with white, red, yellow and orangethroughout. In fact, he even concedes it isn’teasy for every consumer to pluck top-shelf

items out of the display, but that’s not a prob-lem. The store is designed to encourage inter-action between shoppers and employees.

“You’re always dealing with premium lev-els of quality and staging is obviously criticalto doing that in its most dramatic way whileremaining practical,” Andronico maintains.“We wanted to do something eye-catching, sowe did this customized wave like the inter-locking pieces of a puzzle.”

Several table displays that cascade intocases are near the entrance. They provide asense of heft and splash the colors of oranges,pears and other fruit into the department. Tothe right of the entrance is a wall case with 20feet of clamshell berries that lead into tubs offresh-cut fruit displayed in a 4-foot front thatangles off the wall. This gives way to a sectionof refrigerated juices and tub salads that angleoff it. An extensive salad bar closes the pro-duce department and leads on to the deli.

Wedged between the dry case and the fruitdisplays, Andronico’s mounts another criticaldisplay. On a January day, organic apples tookcenter stage, while other fruit filled it out. Butit was the addition atop the main productcomponent that told the tale. There, Androni-co’s offered gourmet cheddar cheese andPinot Grigio wine. Cross-merchandising andsampling are critical to the store’s selling strat-egy. Indeed, sampling stations flank the cas-cading table displays.

Throughout the store, satellite displays andfixed, protruding shelves, or pop-outs, offer a

mix of novel items associated with the cate-gories offered in the aisle and cross-merchan-dised items. With produce, wine and cheeseget heavy emphasis in the store.

“The dry tables are a place that allows usto tie-in merchandise from one area to anoth-er,” Andronico reveals. “But what we’re look-ing for here are not the usual customizedislands. The displays are designed and con-structed to achieve just the right fit. Just likewe do on the end caps, we make an impres-sion of mass and abundance on the customer.Where we do cross-merchandising and tast-ings, we want to slow them down and showthem something they weren’t exposed tobefore. Where we add cheese and beverages,beer or wine, we add interest and surprise.Then we sample. Any time we put food intopeople’s mouths and slow them down, wehave a chance to show them taste is what wehave to offer.” pb

SAN FRANCISCO RETAIL PROFILE

Page 159: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 159

FOODSERVICE

MARKETING

FOODSERVICE

MARKETING

Sweet Potatoes Take Center StageFoodservice operators take advantage of the low cost of sweet potatoes in many unique ways.

B Y J O D E A N R O B B I N S

Sweet Potato Custard with Warm Caramel Sauce is a delicious dessert that usessweet potatoes in a new and unexpected way.

The tried-and-true sweet potato isproviding trendy and economicalways for foodservice operators todifferentiate themselves. “Theuse of sweet potatoes in foodser-

vice has increased in a slow, steady pace forthe past nine to 10 years,” says Sue Johnson-Langdon, executive director of the NorthCarolina Sweet Potato Commission (NCSPS),in Benson, NC. “Americans are looking forsomething new and unique in their diningexperience, and restaurants offering a bakedsweet potato rather than a baked potato givethe consumer the power of choice. Theavailability of value-added products forsweet potatoes, such as french fries, sea-soned chunks and fresh-cut sweet potatoeshas also fueled the increase.”

“More sweet potatoes are showing up onmenus,” agrees Stephanie Tyson, chef andco-owner of Sweet Potatoes, a Restaurant, inWinston-Salem, NC, where sweet potatoestake center stage. “Their versatility andnutritional value make them popular withoperators and consumers alike.”

According to Sondria Reynolds, formerbusiness development director for Nixa,MO-based Market Fresh Produce LLC,“Many restaurants, especially white-table-cloth, have added sweet potatoes to theirmenus as a complement or alternative towhite potatoes.”

As sweet potatoes increasingly appear onrestaurant menus, foodservice garners a big-ger share of shipments. “Based on whatwe’re seeing, there are more shipmentsgoing to foodservice and you see the prod-uct more frequently on menus,” statesCharles Walker, executive secretary of theU.S. Sweet Potato Council, in Columbia, SC.“For example, the USDA [U.S. Department of

Agriculture] Market News Service out ofRaleigh, NC, reported 84,000 cartonsshipped during the Jan. 4 - 7 period, ofwhich 27,000 went to foodservice, or about30 percent.”

“Sweet potatoes are holding up sales-wisebecause the organizations have done a greatjob promoting the health messages and ben-efits, and the chefs are doing a good job ofcooking them,” explains Jimmy Burch, part-ner with Burch Farms, in Faison, NC. “It’sbecoming a mainstream item.”

Although business may have slowed dueto the hit some restaurants are taking withthe economy, sweet potatoes are still an

integral part of the foodservice future. “Theoverall usage of sweet potatoes in foodser-vice is increasing,” declares George Wooten,president of Wayne E. Bailey Produce Co., inChadbourn, NC. “The economy is tough forfoodservice right now and some sweet pota-to movement may be holding its ownbecause we’re cannibalizing on white potatobusiness. However, overall the business isslower right now even though sweet pota-toes are an increasing trend.”

Ryan Quebedeaux, co-owner of HaroldQuebedeaux Produce Inc., in Mansura, LA,and a member of the Louisiana Sweet PotatoCommission in Baton Rouge, LA, agrees.

Phot

oco

urte

syof

Nor

thC

arol

ina

Swee

tPo

tato

Com

mis

sion

Page 160: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9160

looking for something new that boasts mul-tiple applications.”

The compatibility of the product allows itto be incorporated into existing recipes andwith typical kitchen equipment. “The sweetpotato is compatible with the white potatoor other products so you don’t need differ-ent techniques or equipment, yet it offers adifferent taste,” says Wooten. “It is very food-service friendly.”

Additionally, since the product conservesflavor and other important properties evenafter reheating and storage, restaurants canutilize all the cooked product. “Many restau-rants offer a baked sweet potato and capital-ize on turning unserved product into otherrecipes such as cheesecakes, pies andcasseroles,” reports Lee. “If they do it right,there shouldn’t be any waste with sweetpotatoes. The sweet potato can be frozenafter it’s cooked and it still maintains itsquality. It can also be warmed the next dayand will be fine, whereas a white potatocan’t — it will taste over-baked.”

Bailey’s Wooten further explains, “Weworked with a restaurant that took its over-ages from sweet potatoes the night before,quartered them and used them in an appe-tizer the next day.”

HEALTH BENEF ITS ATTRACT CONSUMERS

Sweet potato dishes on the menu can beused to differentiate an operation and con-vince diners to eat there. “Due to the econo-my, operators are looking for ways to attractconsumers and using sweet potatoes sets

F

O

O

D

S

E

R

V

I

C

E

M

A

R

K

E

T

I

N

G

F

O

O

D

S

E

R

V

I

C

E

M

A

R

K

E

T

I

N

G

Rea

der

Serv

ice

#97

Rea

der

Serv

ice

#69

“The overall use of sweet potatoes in food-service has increased the past five years,however, they seem to have leveled off thispast year.”

ECONOMIC FACTORSSweet potatoes can actually help the bot-

tom line of a foodservice operation, espe-cially in the current economic climate. “In atight economy, sweet potatoes can be substi-tuted for higher-value products like butter-nut squash,” suggests Wooten. “Operatorscan substitute sweet potato soup for butter-nut squash soup, buying jumbo sweet pota-toes for a good price. This would be a smartreplacement since foodservice is trying tomaximize efficiency on meals.”

“Sweet potatoes can be much cheaperthan many products, and you can do manythings with them that turn out to be morecost efficient,” agrees Tyson. “Especially ifyou’re using the bigger size sweet potatoes,which provide a better value per pound.”

Debbie Lee, marketing specialist with J.Roland Wood Farms Inc., in Benson, NC,explains the value: “Based on a 40-poundbox, the cost per pound is about 35¢.”

“The product represents a good value tothe foodservice operator,” adds Walker.“There are also two or three different sizesavailable, which offers operators versatility.”

Operators can substitute sweet potatoesfor a variety of different products. TimGroody, executive chef for Sonoma Restau-rant Group, a Charlotte, NC-based companythat owns three restaurants in the area, fre-quently substitutes them for potatoes andsquash, because, “They are very versatile towork with.”

Wooten has another suggestion. “You canalso use sweet potatoes in place of carrots,such as shreds for salads and raw sticks,”says Wooten. “This could be a good substitu-tion if carrot supplies get tight.” The sweetpotato may also be an easier way to changeportion size without the customer thinkingthey’re being cheated. “In foodservice,everybody is downsizing portions and tryingto make the meal a value,” says Wooten.“Operators can easily downsize a bakedpotato for a smaller sweet potato without anoticeable difference — changing the sizeby two or four ounces.”

VERSAT IL ITY COUNTSThe flexibility of the sweet potato is

another big benefit for foodservice. Accord-ing to Quebedeaux, “They can be incorpo-rated into almost any dish.”

“The use of sweet potatoes is increasingbecause of their versatility and also becausethey have more flavor than regular pota-toes,” says Groody. “Foodservice is always

“In a tight economy, sweet potatoes can besubstituted for

higher-valueproducts like

butternutsquash.”

— George E. Wooten, Wayne E. Bailey

Produce Co.

Page 161: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

you apart,” says Tyson of Sweet Potatoes.“Consumers will patronize a place with a

sweet potato,” says Wooten. “They’re famil-iar with it, but it’s still different.”

“From a business standpoint, you alwayswant variety on your menu,” states Sono-ma’s Groody. “Consumers tend to associatewith them and they’re more mainstream.Sometimes, they add a sense of a moreupscale dish. The health benefits areappealing as well.”

As foodservice operators and patronsbecome more aware of the health attributesof meals, sweet potatoes provide anothersuper food to put on the menu. “Theirhealth benefit alone is why restaurantsshould offer sweet potatoes to their con-sumers,” says J. Roland’s Lee. “They are oneof the healthiest vegetables and providemany key nutrients, as well as being a goodsource of fiber. They’re virtually fat- andcholesterol-free and low in sodium.”

The NCSPC, the North Carolina StrokeAssociation, in Winston Salem, NC; theAmerican Cancer Society, in Atlanta, GA;and the American Heart Association (AHA)in Dallas, TX; all endorse sweet potatoes asa nutritious food helpful in the preventionof disease. Additionally, the vegetable ranksextremely high in nutritional value withhigh contents of both Vitamins A and C.

“By adding flavorful, nutrient-rich sweetpotatoes to the menu, foodservice operatorscan deliver both taste and health to con-sumers,” declares Reynolds of Market Fresh.“More than 72 percent of adults want to eatmore healthful meals in restaurants.”

OUT OF THE BOXCreative-thinking chefs are working to

provide more options for sweet potatoes.“Quite a few things can be done to enhancea menu using sweet potatoes,” states Tysonof Sweet Potatoes. “I have sweet potato corn

bread stuffing on the menu, for example. Ifyou think out of the box you can come upwith some really great things.”

“Some trendy uses at restaurants includefries as appetizers, as well as mashed sweetpotatoes with both sweet and savory flavor-ings,” notes Johnson-Langdon.

“Grilling is becoming a serious trend andsweet potatoes are a great item for the grill,”adds Wooten. “They make a delicious appe-tizer as individual fried potato chips, or youcan do cubes and make rosemary-roastedsweet potatoes.”

As consumers respond to sweet potatodishes, more unique appetizers and entréeswill create excitement in your operation.“Sweet potatoes provide diners with new

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 161

Broad Application

A ll ends of the foodservice spectrumcan utilize the sweet potato. “Thesweet potato can go white-table-

cloth or casual dining because of its versa-tility and nutrition,” states U.St. Sweet Pota-to Council’s executive secretary, CharlesWalker. “Once consumers are better edu-cated about the nutrition there will be evenmore demand for this product. Casual din-ing is a perfect place for the sweet potatoin terms of plate value and pricing.”

“White-tablecloth steakhouses, likeHeathrow, FL-based Ruth Chris, are offeringsweet potatoes as a side,” reports JimmyBurch, a partner with Burch Farms, in Fai-son, NC. “Then, we see chains like GoldenCorral, based in Raleigh, NC, that wentfrom not having any sweet potatoes tohaving several choices such as baked orcasserole. Now, even some of the pizzaand fast-food places are introducing sweetpotato fries. We have more than a thou-sand loads going to fries this year.”

The versatility of sweet potatoes meansthey can land anywhere on the menu.“Sweet potatoes can double as a dinneritem or a dessert,” says Sondria Reynolds,former business development director forMarket Fresh Produce LLC, in Nixa, MO.“Some examples include sweet potatohash browns, sweet potato chips, sweetpotato bisque and even ice cream. Otherapplications include baked sweet potatoes,mashed sweet potatoes, sweet potato fries,sweet potato pie, soufflé, crème brulée andsweet potato frittata.”

While some chefs push their creativityby incorporating sweet potatoes into newuses, the product also provides many con-sistent and easy uses for casual dining

operations and chains. “Sweet potatoes fitwell into casual dining,” reports StephanieTyson, chef and co-owner of Sweet Pota-toes, a Restaurant, in Winston-Salem, NC.“Sweet potato fries are excellent and easyto use. They may cost a bit more than reg-ular fries but they provide differentiation.The restaurant may see an increase in thesales of the item with which they’re paired.They’re great tasting and versatile.

“For restaurants that don’t have themon the menu already, one of the easiestways to incorporate them is to offer abaked sweet potato,” says George E.Wooten, president of Wayne E. Bailey Pro-duce Co., in Chadbourn, NC.

“You can do it in-house or there areregional processors who offer pre-cut sweetpotatoes,” continues Wooten. Another bigthing happening now is frozen sweet pota-to french fries. You can also do somethings with fresh-cut sweet potato frenchfries. One thing we think would be a goodproduct for a mid-level chain is a slab-cut,also called a filet. You can get by withmaybe six ounces of prepared product,which will help in cost effectiveness, asopposed to serving a 12-ounce potato.”

Consistent, easy or semi-processedproducts offer an advantage for chain orcasual dining operations. “For example,sweet potato fries and sweet potato chipstranslate easily to more informal restau-rants,” states Reynolds.

“Chain restaurants can take advantageof more mainstream products, such asfries or mashed potatoes,” notes Groody.“They should cater to what their clientswant and what can be duplicated withease and consistency.” pb

taste choices,” offers Johnson-Langdon. “Forexample, sweet potato fries with a savorydip, such as blue cheese, as an appetizerwill create a buzz.”

“A baked sweet potato is usually the mostprepared in restaurants,” says Quebedeauxof Harold Quebedeaux. “Besides bakedsweet potatoes and sweet potato pie, restau-rants are offering other dishes and dessertsmade with sweet potatoes, such as salads,breads, soups, soufflés and cheesecakes.”

“I do a lot of gratins with apple, onion,sweet potatoes and cheese on top,” reportsGroody. “They caramelize well and don’tdiscolor. You fry them a little differentlythan a regular potato but you get a sweeterproduct as opposed to a french fry.” pb

“If they do itright, there

shouldn’t be anywaste with sweet

potatoes.”

— Debbie Lee, J. Roland Wood Farms

Page 162: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9162

DRIED

FRUIT

&

NUTS

DRIED

FRUIT

&

NUTS

Score Big With Sport Snacks Good nutrition adds appeal to dried fruit and nut sport snacks.

B Y B A R B A R A R O B I S O N

The old phrase, “Buy me somepeanuts and Cracker Jack,” sungat ball games everywhere, says itall. Snacking goes hand-in-handwith watching or attending

sports events, or participating in sportsactivities. However, snack selections arechanging. Today, more consumers viewdried fruits and nuts as healthful snackalternatives because of increased attentionto good eating.

“The nutritional value of dried fruits andnuts remains a prominent reason for theselection of products we offer,” explainsDwaine Stevens, media and communityrelations manager for the Jacksonville divi-sion of Lakeland, FL-based Publix SuperMarkets Inc.

“Fifteen years ago, baking was the num-ber one use for dried fruits,” adds Joe Tam-ble, vice president of sales, North Americafor Sun-Maid Growers of California, locatedin Kingsburg, CA. “While there is still a siz-able core of bakers, more dried fruits arebeing eaten as healthful snacks. Youngerconsumers, especially, are discovering driedfruits as delicious natural snacks. Today, weoffer a greater choice of dried fruits thanever before.”

Tying in major sporting events with dis-plays of dried fruits for snacks in the pro-duce department can effectively introduceconsumers to the idea. “Dried fruits areimpulse items and when markets carry dis-plays in the produce section, they can see a20 to 30 percent increase in sales velocity,”states Jeff McLemore, product manager ofdried fruit for Sunsweet Growers Inc., head-quartered in Yuba City, CA. “Kroger hasdone an excellent job using display shippersto draw consumers. Publix has also usedsuccessful displays promoting dried fruits ashealthy snack choices.”

New nutritional information is continual-ly being developed regarding various driedfruits. Major benefits have centered on thenatural sugars and antioxidants they pro-vide. Calcium, potassium and trace miner-

als, such as iron, are important dried fig con-tributions to the diet, and interest in driedfigs as a snack is continually growing,according to Linda M. Cain, vice presidentof marketing and retail sales at Valley FigGrowers in Fresno, CA.

“A produce department’s merchandisingtie-in with dried fruits and nuts and sportingevents is one way to show the department isa center for healthful eating,” says AndrewStillman, president of the Minneapolis, MN-based Amport Foods. “Innovative displaysget consumers’ attention and once they pur-chase and taste dried fruit snacks, you’vedeveloped future customers.”

Amport Foods supplies plastic containersin the shape of a football to assist retailers inmarketing its dried fruit and trail mix prod-ucts during the Super Bowl season. “Weoffer flexible packages with resealable zip-locks, which can be carried in a pocket,purse or backpack,” notes Stillman. “Theymake ideal snack containers when attendinga ball game, going skiing or hiking.”

The sales of some items, such as driedcranberries, have become trendy with theexpansion of the dried fruit category. Sun-Maid Growers markets a 6-pack of dried

Tying in major sporting events with a display of nuts can increase sales.

cranberries that is popular to carry to sport-ing events or when participating in sportsactivities. Sunsweet’s individually wrappeddried plums are the fastest-growing item inits dried fruit line.

“Dried apricots, cranberries and blueber-ries are among the most popular alternativehealthy snack items we offer,” statesStevens. “We consistently promote varioushealthful snack alternatives throughout theyear for Spring Training, NBA and NFL Play-offs, the World Series and Super Bowl. Weregularly offer our stores promotional mate-rials and display units for assorted snacksand dried fruits, which they can use to tie inwith local sports activities.”

Jons Markets Inc., a Los Angeles, CA-based chain with 14 stores, promotespeanuts, pistachios, trail mixes and driedfruit for Super Bowl, baseball season andother sporting events, notes GeorgeSapondzhyan, produce supervisor and mer-chandiser.

Crispy Green Inc., located in Fairfield,NJ, promotes its snacks as having “no addedsugar, preservatives, colors, flavors, fat orcholesterol,” states president Angela Liu. “Ifa product is nutritious and delicious, con-

Page 163: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 163

sumers will discover that fruit can be fun toeat. Women, especially those watching theirweight, will welcome the Grab & Go 6-packswith small, snack-sized portions to enjoy atsports events.”

“As a major private-label dried fruit sup-plier, we consistently utilize many merchan-dising tools to help retailers align promo-tions with large sporting events,” reportsJane Asmar, director of branded retail sales,corporate accounts at National Raisin Co.,based in Fowler, CA, which offers a com-plete line of dried fruit, snack nut and trailmix products. “With the consumer move-ment toward more healthful products, wesee more retailer interest in tie-ins to localvenues such as college team match-ups,sponsored run-the-bases events, Coach’sCorner television shows and team exhibi-tions that teach sports fundamentals to localgroups. These tend to get outstanding mediacoverage and loyal followings. Our Disneybrand dried fruit has been used for con-sumer sampling at major Disney events.”

NUTR IT IOUS NUTS Trail mixes are a popular way to combine

both flavorful, nutritious dried fruits andnuts. Econo Foods, an Iron Mountain, MI-based chain with six stores, carries trailmixes year-around, according to Jim Weber,produce director. “We sell a lot of nuts fordifferent sporting events throughout theyear. We sell hundreds of pounds of peanutsduring the Wisconsin/Michigan huntingseason, and peanuts are popular during thefootball season with local Packer, Lion andViking fans. I order bins of pistachios forSuper Bowl time and they are also a favoriteof hunters.”

Nuts have taken on a new luster as cur-rent research shows individual nuts makemore valuable contributions to good health.“We represent nine different nuts and eachnut has its own special nutritional attribut-es,” reports Maureen Ternus, M.S., R.D., theexecutive director of the Davis, CA-basedInternational Tree Nut Council NutritionResearch and Education Foundation. “Theycontribute protein, fiber, vitamins and min-erals and no one nut is better than another.

The foundation provides its memberswith the most current nutrition and healthresearch information. “It is recommendedthat a person eat one and one-half ounces ofnuts per day to help prevent heart disease,”asserts Ternus. “The only thing we recom-mend is to be sure and watch the portionsize. Keep it to about one-third of a cup,which is the amount suggested to reducethe risk of heart disease.”

Peanuts — long a sport snack favorite —are still going strong, according to Betsy R

ead

erSe

rvic

e#

50

Owens, executive director of Virginia-Caroli-na Peanut Promotions, based in Nashville,TN. “We have provided sports-oriented dis-plays, posters and pricing signs for years. Wealso have held successful display contests.Today, we know health has a greater impacton consumers choosing peanuts and othernuts for sport snacks. Our most popularproduct is the 12-ounce size of in-shellpeanuts.”

Like dried fruits, pecans have been usedmost often as a baking ingredient, but now61 percent of those surveyed said they areeating pecans as a snack, states AshleyLansdale, an account executive at SahlmanWilliams, a Tampa, FL-based public relationsfirm representing the Georgia Pecan Com-mission. “Georgia pecans are not just acrunchy sports treat, but also a healthy nut.Recent research revealed consumers aremore likely to purchase pecans once theyare aware of the nutritional benefits. Pecansare rich in vitamin E and thiamine, and theyare a good source of fiber and antioxidants.”

Bryan, TX-based Texas Pecan GrowersAssociation promotes pecans as a healthfulsnack and can provide samplings andrecipes for special sporting event promo-tions, according to Blair Krebs, associatedirector of sales and marketing.

“Ninety percent of our pistachios are stilleaten out-of-hand, so they make an excel-lent sport snack,” states Richard Matoian,executive director of the Fresno, CA-basedWestern Pistachio Association. “The roastedsalted or just roasted in-shell nuts are stillthe most popular, but newer products withkernels removed from the shell are gainingin popularity.” In recognition of increasedconsumer interest in more intense flavors,the industry is experimenting with differentpistachio flavors, including salt and pepper,jalapeño and chipotle.

Health is the largest driving force behindthe marketing programs of ParamountFarms Inc., headquartered in Los Angeles,CA, reports Marc Seguin, director of market-ing. “People love pistachios as a social snack,especially for sporting events, but they alsofeel good about serving a healthy snack. Theweek prior to the Super Bowl is our singlebest week for pistachio sales.” ParamountFarms provides easy-to-use one-quarter andone-half pallet pistachio bins and encour-ages retailers to feature the nuts for all thedivisional games leading up to the SuperBowl itself.

For greater success in marketing pista-chios, especially for sporting events, Seguinsuggests three things: Have a hot price soconsumers think there is something special,run retail ads and be sure to display plenti-ful supplies. pb

To get ahead inthe produce business,

you need to stay aheadof the produce business.

For subscriptioninformation, please go to

producebusiness.comor call us today at

561-994-1118, Ext 109

Initiating IndustryImprovement

Page 164: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9164

FLORALWATCH

Floral Watch is a regular feature of PRODUCE BUSINESS. Please send information on new products, personnel changes, industry, corporate and personal milestones and available literature, alongwith 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]

ASB GREENWORLD, ONTARIO, CANADADavid Turnbull, CHT, CSP, was hired as salesmanager. He is a past-president of LandscapeOntario and has served on many volunteercommittees supporting the ornamental horti-culture industry during the past 20 years. Hecomes to ASB Greenworld with many years ofexperience in sales and marketing in all facetsof the industry.

FARMER’S WEST FLOWERS & BOUQUETS INC., CARPINTERIA, CALinda Giovannozzi recently joined thesales team as director of sales and market-ing. Formerly with Elite Flower, Miami, FL,she has more than 30 years of floral indus-try experience in sales and management.Marc Robinson, formerly with Dole FreshFlowers, Miami, FL, has joined theFarmer's West Flowers & Bouquet team assenior account manager. He brings withhim 24 years of floral industry experience in sales, marketing, managementand logistics.

DOUBLE TEAM EFFORTThe John Henry Company, Lansing, MI,recently added TGM Marketing Group,Garland, TX, to its organization.Headquartered in the company’s Dallas,TX, facility, the team develops custombranding and differentiated marketing pro-grams utilizing its unique technologies forvalue-added printing on plastic, paperboardand paper.

SENDING FLOWERS TO AMERICAThe American Florists’ Exchange Ltd., dba Los Angeles Flower Market, Los Angeles, CA,announces the publication of a hardbound, 288-page, full-color, pictorial history titled SendingFlowers to America: History of the Los AngelesFlower Market and the People Who Built anAmerican Floral Industry.

MERCHANDISING FOR MOMSburton & BURTON, Bogart, GA isencouraging retailers to remembermoms in a big way with these ready-to-fill, lined, tin planters. The 4-inchMom tins measure 4.5" H x 5.25" W x5.25" D and are shipped in sets of six.In sets of four, the 6-inch tins mea-sure 6.25" H x 7.25" W x 7.25" D.

Reader Service No. 322

NATURALLY GLOSSY FROM HAWAIIHawaiian Sunshine Nursery Inc., Hilo, HI,introduces a patent-pending plant with beau-tiful and consistent variegation calledDracaena ‘Hawaiian Sunshine.’ The plant issuperior to Dracaena Massangeana due to itsexcellent durability in the interior, smaller-leaf size, darker green leaves and its reten-tion of variegation.

Reader Service No. 323

MAKE IT VIBRANT FOR MOMNurserymen’s Exchange Inc., Half MoonBay, CA, introduces 4-inch Orange Starin an eye-catching decorative ceramiccontainer. Orange Star, an exclusive vari-ety to the company, is a compact plantwith large, vibrant flowers and excellentshelf life.

SHOW YOUR PATRIOTISMPotter Inc., Bryan, OH, offers 10-inch, 12loop, large decorative patriotic bows.They arrive on clip strips for convenientcross merchandising and include UPClabels. Also available in yellow to showsupport, the ready-made, poly ribbonbows bring a true punch of patriotism tofloral departments and are easy to usefor home patriotic displays.

Reader Service No. 324 Reader Service No. 325

BOOKING SUMMER ORDERSVaughan Inc., Sanford, FL, introduces Sand Castles— a whimsical collection of metal pails featuring athree-plant garden and beach scenes. Summerplant sales can be boosted by brightly colored mer-maids and fish. The collectible, 5-inch sand pail gar-dens ship nine to a case. Orders need to be pre-booked 90 days prior to shipping.

Reader Service No. 320

DISPLAY EFFORTS MATTERWillow Group Ltd, Batavia, NY, offers easy-to-use display shelves ideal for merchandis-ing plants and floral department col-lectibles. The sturdy, wooden shelving unitsare also simple to disassemble and store.These shelving units can accept optionaldisplay lights. The rustic-looking shelvesbring charm, simplicity and convenience tofloral departments.

Reader Service No. 321

ANNOUNCEMENTS

Reader Service No. 318 Reader Service No. 319

NEW PRODUCTS

TRANSITIONS

Page 165: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 165

FLORAL

&

FOLIAGE

MARKETING

FLORAL

&

FOLIAGE

MARKETING

Keep Sales Fresh With Product Balance How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings.

B Y C O L L E E N M C G I N N

Each Schnuck Market caters to its own geographic need.

Tapping into the emotions andneeds of floral customers, notic-ing color trends and reacting tochanges in the economy enablesretailers to better cater to floral

customers. Capitalizing on the strong appealof locally grown products, savvy floral exec-utives are re-examining their departmentsfrom the ground up. Creating a local floristatmosphere within a supermarket meansoffering consumers a welcoming environ-ment that features a wide range of floralproducts, services and gifts.

THE FEEL GOOD FACTOR Stater Bros. Markets, a San Bernardino,

CA-based chain, and Schnuck Markets Inc.,headquartered in St. Louis, MO, both haveboutique environments to make shoppersfeel like the floral department is its ownspecial place. Michael Schrader, Schnuck’sfloral manager, has organized many success-ful events within the floral department. “Wedid several open-house types of events atfour of our stores and they were very suc-cessful. We created an environment thatwas like a florist shop, serving cider andcookies, and we had floral designers on-siteshowing customers how to personalize theirwreaths. We had a peppermint-themed tree,as well as a more dramatic bronze, glassornament tree, and had signage clearly stat-ing that all the ornaments on the trees werefor sale,” he explains. “We love the holidayseason and having consumers come into thestore. This was so successful, we areexpanding to 12 stores next year.”

Schrader recognizes his core consumerbase and provides for them accordingly,without alienating his edgier and fashion-forward consumers. “This Christmas, I wentwith a very traditional theme,” he says. “Redand gold, as well as some all white. We live

in the conservative Midwest and I believethat people should not be told what theywant. They want to tell you. So, if thismeans poinsettias, I provide them. I wentfor items that appealed to customers’ senseof nostalgia, because of the downward spi-raling economy.”

Liane Mast, floral director of Stater Bros.,describes how her company has also capital-ized on this trend. “We have home-decorstores and we merchandise them like giftshops, displaying candles and candle hold-ers, picture frames, art glass, clocks, ceram-ics, wooden and metal boxes and even furni-ture. We cater to gift buyers and those con-sumers who make impulse buys.” Mastkeeps merchandise displays fresh and invit-ing by buying for the boutique quarterly. Toserve customers with a special event, StaterBros. prominently displays an order book toschedule services in advance for weddingsand other large events.

When making choices for new productofferings, Mast listens to her customers, aswell as her vendors, such as Martha

Moreno, a sales representative at Vista, CA-based Rose Gonzales Plants Inc. Morenoloves to create a value-added element to pot-ted plants, and takes responsibility for keep-ing consumers on the cusp of holiday trends— old and new. For example, “For Friend-ship Day, I added braided friendshipbracelets as a keepsake on potted plants. Itwas very popular with teen buyers,” revealsMoreno. Similarly, “Pet Appreciation Daywent over well with floral wrap imprintedwith cat and paw prints.”

CREATE BUY ING OPPORTUNIT IES

Despite a faltering economy, keen floralexecutives know everyone isn’t affected,and there are always some consumers will-ing to splurge for a special occasion or amust-have item. Schrader’s biggest Christ-mas surprise came from a decision to sellcollectible Santas. “These collectibles are notyour ordinary purchase, they are a very bigticket item. They stand six feet tall, have a6-foot tree attached and retail for $700,”

CASE STUDYCASE STUDY

Page 166: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9166

F

L

O

R

A

L

&

F

O

L

I

A

G

E

M

A

R

K

E

T

I

N

G

F

L

O

R

A

L

&

F

O

L

I

A

G

E

M

A

R

K

E

T

I

N

G

Suppliers See A Greener Horizon

C onfusion in the marketplace aboutwhat constitutes green flowers andplants has floral buyers and retail-

ers in a bit of a spin. Most people wouldconsider any living thing green, but someconsumers also want to know if growersare organic, local or sustainable or maybeeven some combination of all three.Adding to the confusion is the fact thatnot all sustainable farms are organic, norare all organic farms certified sustainable.The local label can also be confusingbecause it can mean different things todifferent people. It remains to be seenhow this labeling will influence consumersin the near future.

While much of the nation remains puz-zled from all these buzzwords, Californiaconsumers may be looking for locallygrown flowers. According to the Sacra-mento, CA-based California Cut FlowerCommission industry survey, 55 percentof California consumers would buy localflowers if given a choice.

Not every region has locally grownflowers available, and some growers arebetting that in the future, consumers aregoing to be looking for flowers and plants

that have earth- and worker-friendly cre-dentials instead, such as the VeriFlora cer-tification. B and H Flowers, located inCarpinteria, CA, has obtained the VeriFloracertification to demonstrate to buyers thatits farms meet VeriFlora requirements forsustainable farming practices, labor rela-tions and product quality assurance. ScottFulton, vice president of sales and market-ing at B and H, which markets VeriFlora-certified Gerbera daisies, lilies, tulips andirises to supermarkets across the country,observes that consumers are discoveringthe benefits of sustainably grown flowers.“Our quality is competitive, and retailersare getting savvy to the idea that con-sumers are requesting and buying prod-ucts that are sustainably grown.”

Sharon Mikulinski, marketing managerat Passion Growers, a Miami, FL-basedsupplier to Schnuck’s, has noticed a simi-lar change. “Customers ask if we are sus-tainably certified. This seems to be theforemost thought of retailers now.” Pas-sion Growers has a number of sustainablecertifications including GlobalGAP, VeriFlo-ra, as well as the newly acquired Rainfor-est Alliance Certification. pb

details Schrader. Even the most optimisticretailer would be pushing the bounds ofimpulse shopping with an offering like this.“I was shocked at the success of theseitems,” adds Schrader. “I didn’t think I couldsell one $700 Santa much less five, but I liketo leave myself open to being surprised. Ican’t always predict what the customer willwant, so it’s good to have some creativeitems. You never know what will strike achord in a buyer.”

Looking for opportunities in a downmarket, Schrader also opted to add $9.99rose bouquets to Schnuck’s offerings. “Ourvolume was up, but our margins were down.Nonetheless, we moved a great deal of thosebouquets and I’m really glad I made thedecision to offer them,” states Schrader.

Reaching out to younger buyers, Schrad-er also keeps brightly dyed daisies in stockfor his teenage customers. “They have along vase life and are lower priced. Evenyoung consumers are looking for value.”

REACH OUT TO LOCAL COMMUNIT IES

Mast makes sure Stater Bros. stores are

plugged in to the local communities. “Wemarket to the schools for proms, dances,graduations, etc. We currently have a hospi-tal that buys single roses twice a week forthe maternity ward,” Mast continues. “Storeswith cemeteries in the area are fully stockedfor holidays and memorial events.”

Schnuck’s allows each store to serve itslocal community by ordering out of a cen-tral warehouse. This way, stores near ceme-teries and hospitals can order what theircustomers need. According to Schrader,“Every market caters to its own geographicneed. Our stores near cemeteries andchurches order flowers based on what theircustomers need, and store managers getthem from a central warehouse, so we canalways be sure to have product where it isneeded and wanted.”

BUYING GREENMast runs a “green” sale twice a year at

Stater Bros. and markets the clean air bene-fits of having green foliage in the home andoffice. Another “green” initiative, which isthe marketing of sustainable products, is rel-atively new to her floral departments. “We

have several grower/vendors that have donea tremendous job of putting worthwhile pro-grams together, and we plan on takingadvantage of them sometime in the future,”reveals Mast.

Eco-friendly items aren’t very importantto Schrader’s customers in Missouri. “Wetried marketing [sustainable] floral, but itjust didn’t go over well,” he admits. “Ourcustomers assume that flowers are alreadygreen and won’t pay a premium for organicflowers and plants when the shelf life is notany longer than regular plants.” Nonethe-less, he continues to buy from PassionGrowers, a Miami, FL-based sustainablegrower that imports roses from South Amer-ica. According to Schrader, Passion Growershas an excellent product with great colorselection, and the company is competitivewith growers that don’t have eco-friendlycertifications. He orders sustainably grownflowers because it’s the right thing to do.

ATTRACT ING NEW CONSUMERS

Since hearing members of a consumerpanel express that they read the floral ads inthe mailers and some even look forward toseeing what’s new in the floral departmentfor the week, Mast makes sure Stater Bros.newspaper ads send a clear message. “It’simportant that the ad makes sense, whetherit’s a color, fragrance or charity theme, suchas breast cancer awareness, or rose promo-tions for National Rose Month in June,”explains Mast. “We have done several differ-ent types of programs marketing colorthemes, such as purple passion or mellowyellow, where all plants and flowers are inshades of purple or yellow. We also have aMum of the Month program that features aspecific kind of Mum and promotes theunique qualities of the plant.”

Stater Bros. also advertises in the PennySaver during holidays. “Floral has the domi-nant space in the weekly mailer and isstrongly advertised in the local newspapers,”states Mast, who also works with advertisingto market the benefits of flowers through in-store signage, as well as targeted ad content.“Our Healthy Selections magazine ran an arti-cle titled ‘Happiness Blooms with Flowers,’which covered a study done by Camden, NJ-based Rutgers University and the Society ofAmerican Florists,” says Mast. The studyrevealed flowers have an immediate impacton happiness, with recipients expressingtrue and delighted smiles, regardless of gen-der and age — a great reason to visit yourlocal floral shop. pb

Page 167: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 167

Health Is More Than Diet

At the beginning of each year, dieting becomes a popu-lar topic after most people have indulged in excessivecalorie consumption during the holidays. One of thefirst dieting stories of the year came from California’sSan Diego Zoo. In 2008, facing a crisis of reduced

income coupled with overweight elephants, the decision was madeto put the elephants on a diet. The diet included removal of theusual feeding area replaced by a type of feedingtrail that required the elephants to exercise inorder to obtain food, resulting in a weightreduction that averaged nearly 1,500 pounds foreach of the seven mammals. “It mirrors whatgoes on in the human world,” explains JohnLehnhardt, animal director at Disney World, inOrlando, FL. “Being lighter and getting moreexercise is better for your health.”

For years, the overweight population hascontinued to increase, even as more organiza-tions attempt to take advantage of the call forgood eating in an effort to enhance productsales. For many, the message is working, andthe Produce For Better Health Foundation’s(PBH) Fruits and Veggies More Matters pro-gram is among the best. But it only focuses onone side of the equation, and the current eco-nomic environment makes it more challengingfor consumers to react to the More Mattersmessage. According to a survey conducted thispast summer by the Produce Marketing Associ-ation (PMA), consumers noted that steep risesin fresh produce prices would cause them toreduce their consumption of fresh fruit and vegetables in favor ofother options.

While President Obama is amazingly fit at age 47, a recent car-toon characterization in USA Today showed the average, 40-some-thing male is 5-foot 9-inches and weighs an average of 190 pounds— obviously overweight. Likewise, the female population has evengreater concerns regarding weight-related problems. This newspa-per also ran a week-long weight loss challenge series with thetheme of losing pounds while saving money. Details for this home-centered inexpensive program are available on USA Today’s Website.

It is important we recognize how the population arrived at itscurrent state of physical fitness — or lack thereof. At the beginningof the twentieth century, 60 percent of the population was classifiedas rural. Through the years, the unintended consequences of mech-anization and information technology helped create a population

that settled in an urban area, many of whom are not regularly phys-ically active.

In an effort to fight the growing obesity epidemic, a number ofcorporate sponsors, such as Campbell’s Soup, Johnson & Johnson,Celestial Seasonings, Cheerios, Minute Maid, Quaker Oats andCoca-Cola have partnered with the National Heart, Lung and BloodInstitute (NHLBI). Recently, my wife received an e-mail referenc-

ing Coca-Cola as a continuing Heart Truth Part-ner. This program is directed at women andfocuses on diets low in fat, as well as 30 min-utes a day of moderate-intensity physical activ-ity. Part of the Coca-Cola program includes adownloadable exercise video for participantspurchasing Coke products.

The Centers for Disease Control and Pre-vention (CDC) Web site includes partnershipswith the American Cancer Society (ACS), theAmerican Diabetes Association (ADA) and theAmerican Heart Association (AHA), in addi-tion to the PBH and the major produce indus-try groups for support of More Matters. Addi-tionally, a growing number of retailers are cre-ating their own rating programs for identifyingthe nutritional attributes of various productsthroughout their stores, providing ample mes-sages about healthful eating for consumers.

Overall, there are numerous organizationsinvolved with the diet portion of the equation,but each individually fails to create a signifi-cant impact in the minds of most consumers.This is most likely due to the fact that coordi-

nated messages focusing on the importance of exercise programsare relatively few and lacking the depth necessary to motivate largepopulation segments.

Stanford University professor Hayagreeva Rao’s new book, Mar-ket Rebels, explains the role of activists in making or breaking newmarkets, products and services. Critical for many activists is articu-lating a hot cause that arouses emotion and creates a community ofmembers by emphasizing open lines of communication with con-sumers. Being responsive to consumers doesn’t mean doing some-thing to consumers; it means doing something with consumers.

Somewhere among all the numerous organizations with aninterest in health, the hope is that one organization can step awayfrom the pack and lead the others toward developing and imple-menting a coordinated diet and exercise program that will motivateconsumers to become slim, trim and healthy. Mirroring the SanDiego elephants would be a true stimulus package. pb

By Dave DiverRETAILPERSPECTIVE

There arenumerous

organizationsinvolved with

the diet portionof the equation,

but each individually fails

to create a significant

impact in theminds of most

consumers.

Page 168: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9168

Progressive Strides In DenmarkAffect Produce Consumption

PB: How exactly does your organization operate?Toft: We work through a public-private partnership with part-

ners from governmental food and health organizations, non-govern-mental health organizations and the fruit and vegetable industry.Our members include the Danish Veterinary and Food Administra-tion; the National Board of Health; the Danish Cancer Society; theDanish Heart Foundation; the Danish Fruit Vegetable and PotatoBoard; the Danish Meat Association; FDB (a consumer organizationowning Denmark’s biggest retailer organization) and Dansk Gartneri(the Danish green grocers).

PB: Why work through partnerships?Toft: We think partnerships are necessary

because they provide more resources andincrease credibility, relevance and legitimacy.They also help with dealing with regulations andcommunication channels, as well as giving afeeling of greater ownership and thus adding tothe sustainability of the program. Lastly, part-nerships expand the spheres of influence.

PB: What is your program’s main goal?Toft: Our principal goal is to get people to

eat more fruits and vegetables. We work toincrease availability by providing easy access tofruit and vegetables at home, in shopping cen-ters, in schools and at work. We also focus oncommunicating the advantages of fruit and veg-etables — going beyond the simple message ofthem being healthful, because people alreadyknow that — concentrating on the message ofhow they taste good and provide energy. We alsoprovide good ideas on how to eat more. Our work also involves lob-bying, networking and documentation.

PB: What is the focus of your activities right now?Toft: We believe not only in communication, but also in avail-

ability and ready-to-eat products. Simply make the product availableand ready-to-eat and they will eat it. Changing behavior first can bemore efficient than trying to change knowledge, attitudes and valuesto indirectly change behavior, especially in a society where knowl-edge is no longer an issue. Our main target group is families withchildren from ages 4 to 14 years old who are motivated to increasetheir intake. We are interested in lifting the bottom to get those whoeat less than 10 ounces per day to eat more. This group has beenchosen because many families do not eat enough fruits and vegeta-bles, and it’s important to begin healthful habits early in one’s life.

PB: What changes have you seen in consumer reactionand/or retailer reaction to increasing consumption in yourcountry?

Toft: It’s always difficult to find out where the changes comefrom, but since the beginning of the 6-A-Day Program in 1999, con-sumption in Denmark has gone up by 40 percent. Nearly 84 percentof all Danes know our slogan, although not necessarily the sameamount follow it. One of our main focus areas this year is to concen-trate on retail, and make it easier and more attractive to buy health-ful food that incorporates fruit and vegetables. In Denmark, conve-

nience food is not as common as in the UnitedStates. We do not think of it as healthful orfresh, and some mothers think they aren’t goodmothers when they don’t cook everything fromscratch. So we have some communication to doin the ready-to-eat area.

PB: What are some of the main activi-ties you’re doing now?

Toft: We’re working on a school-fruitscheme. We’re also working to provide easieraccess to healthful and quick food solutions inshops in partnerships with the retail chains.Additionally, we’re communicating that it’s OKto use easy, healthful solutions. We would liketo introduce families to the solutions that otherfamilies use to get their children to eat morefruit and vegetables. We will be highlightingreal people’s success stories. We want to pro-voke the parents a bit and help them see thatbeing a parent also involves healthful eatinghabits.

PB: What activity would you like to do if you had unlimit-ed resources?

Toft: I wish we could do TV commercials. We can learn a lotfrom the companies selling products that are not healthful. Thismedium really works with children.

PB: What do you consider one of your major successes sofar?

Toft: Our Workplace Fruit Program, which we started in 1999,has been a great success. It gives free fruit — paid for by employers— to employees during the workday. At that time, the concept wasalmost unknown. Today, about 40 percent of Danish workplaces reg-ularly provide free fruit to their employees. pb

EUROPEANMARKET

Nearly 84 percent of all

Danes know ourslogan,

although notnecessarily thesame amount

follow it.

By Jodean Robbins

An interview with Vibeke Toft, National 6-A-Day Coordinator for the 6-A-Day Denmark Program in Copenhagen, Denmark

Page 169: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

INFORMATIONSHOWCASE

Receive supplier information fast using the Produce Business Information Showcase. Here’s How:1) Please go to www.PRODUCEBUSINESS.com and click on The Electronic Rapid Response Card and enter the Reader

Service numbers that correspond to the ad and the information showcase.2) Contact the advertiser directly via the Web site, e-mail, phone or fax listed in the ad.

COMPANY PAGE # RS# PHONE FAX COMPANY PAGE # RS# PHONE FAXMARCH 2009

Agrexco USA, Ltd. . . . . . . . . . . . . . . . . . . . 24..........77 ..........718-481-8700 ......718-481-8710

Albert’s Organics . . . . . . . . . . . . . . . . 106-107............2 ..........800-996-9994 ......610-444-0316

Apio, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 82-83............3 ..........800-454-1355 ......805-343-6295

Maurice A. Auerbach, Inc. . . . . . . . . . . . 84-85..........75 ........888-AUERPAK......201-807-9596

Ayco Farms, Inc. . . . . . . . . . . . . . . . . . . . . . 59..........96 ..........954-788-6800 ......954-788-5600

Babe Farms, Inc. . . . . . . . . . . . . . . . . . . . . 30..........23 ..........800-648-6772 ......805-922-3950

Wayne E. Bailey Produce Co. . . . . . . . . . 160..........97 ..........800-845-6149 ......910-654-4734

Blue Book Services. . . . . . . . . . . . . . . . . . . 45..........54 ..........630-668-3500 ......630-668-0303

Brooks Tropicals . . . . . . . . . . . . . . . . 108-109..........32 ..........800-327-4833 ......305-246-5827

Brooks Tropicals . . . . . . . . . . . . . . . . . . 96-97..........33 ..........800-327-4833 ......305-246-5827

Cal-Harvest . . . . . . . . . . . . . . . . . . . . . . 92-93..........67 ..........559-582-4000 ......559-582-0683

Calavo Growers, Inc. . . . . . . . . . . . . . . . . 147..........98 ........800-4-CALAVO......805-921-3272

California Avocado Commission . . . . . . 60-61............6 ..........800-344-4333 ......714-641-7024

California Pear Advisory Board . . . . . 110-111..........37 ..........916-441-0432 ......916-446-1063

Canadian Produce Marketing Assoc. . . . . . 25..........65 ..........613-226-4187 ......613-226-2984

Capital City Fruit Co., Inc.. . . . . . . . . . . . . . 50..........29 ..........515-981-5111 ......515-981-4564

Carcione’s Fresh Produce, Inc. . . . . . . . . 153..........78 ..........650-583-8989 ......650-583-5985

CDS Distributing, Inc. . . . . . . . . . . . . . . . . 156........107 ..........415-864-8588 ......415-864-0380

Chestnut Hill Farms . . . . . . . . . . . . . . . . . . 59..........96 ..........305-592-6969 ......305-436-8969

Ciruli Brothers . . . . . . . . . . . . . . . . . . . . 98-99..........48 ..........520-281-9696 ......520-281-1473

Classic Salads, LLC . . . . . . . . . . . . . . . . . . 48............8 ..........831-763-4520 ......831-763-1542

Coast Produce Company . . . . . . . . . . . 76-77..........30 ..........213-955-4900 ......213-689-1298

Coast To Coast Produce Co. . . . . . . . . . . . 35..........99 ..........877-836-6295 ......617-381-0067

Colorful Harvest . . . . . . . . . . . . . . . . . . . . . 22..........79 ..........880-305-1101 ......831-422-0555

Columbia Marketing International . . . 104-105..........40 ..........509-663-1955 ......509-663-2231

Community Suffolk, Inc. . . . . . . . . . . . . . . . 37..........14 ..........617-389-5200 ......617-389-6680

Crowley Maritime Corp. . . . . . . . . . . . . . . . 41..........12........800-CROWLEY

Customized Brokers . . . . . . . . . . . . . . . . . . 59..........96 ..........305-471-8989 ......305-471-8988

D’Arrigo Bros. Co. of New York . . . . . . . . . 33..........76 ..........800-223-8080 ......718-960-0544

Del Monte Fresh Produce. . . . . . . . . . . . . 172..........80 ..........800-950-3683 ......305-520-8495

John DeMartini Co., Inc. . . . . . . . . . . . . . . 154..........81 ..........415-826-7122 ......415-826-7120

Des Moines Truck Brokers, Inc. . . . . . . . . . 44..........24 ..........800-247-2514 ......515-981-0923

DNE World Fruit Sales . . . . . . . . . . . . . 78-79..........47 ..........800-327-6676 ......772-465-1181

Dole Fresh Fruit Company . . . . . . . . . . 62-65..........58 ..........818-879-6600 ......818-879-6628

Dole Fresh Vegetable Co. . . . . . . . . . . . . . . 2..........43 ..........800-333-5454 ......831-754-5243

Dole Fresh Vegetable Co. . . . . . . . . . . . . . 59..........96 ..........831-641-4312 ......831-641-4332

Domex Superfresh Growers . . . . . . . . . 54-55..........35 ..........509-966-1814 ......509-966-3608

Domex Superfresh Growers . . . . . . . . . 74-75..........36 ..........509-966-1814 ......509-966-3608

dProduce Man Software . . . . . . . . . . . . . . . 34..........60........888-PRODMAN......650-712-9973

Driscoll Strawberry Associates, Inc. . . . 66-69..........82 ..........831-763-5000 ......831-761-5988

Driscoll Strawberry Associates, Inc. . . . 66-69..........83 ..........831-763-5000 ......831-761-5988

Duda Farm Fresh Foods, Inc. . . . . . . . . 72-73..........64 ........866-792-DUDA ......561-978-5705

East Coast Brokers & Packers, Inc. . . . . . 171........105 ..........800-557-7751 ......863-869-9850

Eaton & Eustis Co. . . . . . . . . . . . . . . . . . . . 38..........84 ..........617-884-0298 ......617-884-2611

Family Tree Farms . . . . . . . . . . . . . . . . . . 137..........85 ........866-FLAVOR-1 ......559-595-7795

Franzella Produce, Inc.. . . . . . . . . . . . . . . 153........100 ..........650-742-7910 ......650-742-7916

Fresh Partners AB . . . . . . . . . . . . . . . . . . . 50..........52..........46-8-742-1215 ....46-8-742-6201

Fresh Sense . . . . . . . . . . . . . . . . . . . 122-123..........42 ..........866-747-3673 ......559-646-3662

General Produce, Inc.. . . . . . . . . . . . . . . . . 39..........61 ..........800-782-5833 ......404-361-1841

Genpro Transportation Services, Inc.. . . . . 42..........49 ..........800-243-6770 ......973-589-1877

The Giumarra Companies . . . . . . . . . . . . . 23..........10 ..........323-415-8330

Greenleaf . . . . . . . . . . . . . . . . . . . . . . . . . 156........106 ..........415-647-2991 ......415-647-2993

Grimmway Farms . . . . . . . . . . . . . . . . . 70-71..........28 ..........661-845-9435 ......661-393-6458

Grimmway Farms . . . . . . . . . . . . . . . . . . . 141........101 ..........661-845-9435 ......661-393-6458

Grower Alliance, LLC . . . . . . . . . . . . . . . . . 22........102 ..........520-761-1921 ......520-377-9189

Herb Thyme Farms . . . . . . . . . . . . . . . . 88-89............9 ..........831-476-9733 ......831-476-3710

Hollandia Produce . . . . . . . . . . . . . . . . . 90-91..........44 ..........805-684-4146 ......805-684-9363

Idaho Potato Commission . . . . . . . . . . . . . 21..........68 ..........208-334-2350 ......208-334-2274

Idaho-Eastern Oregon Onion

Promotion Committee . . . . . . . . . . 102-103..........26 ..........208-722-5111 ......208-722-6582

Jacobs, Malcolm & Burtt, Inc. . . . . . . . . . . 153..........86 ..........415-285-0400 ......415-824-4844

J.R. Kelly Company . . . . . . . . . . . . . . . . . . 30..........22 ..........888-344-4392 ......618-344-2297

Kern Ridge Growers, LLC . . . . . . . . . . . . 142..........87 ..........661-854-3156 ......661-854-2832

Keystone Fruit Marketing, Inc. . . . . . . . . . . 59..........96 ..........772-316-0364 ......772-316-0366

Keystone Fruit Marketing, Inc. . . . . . 124-125..........34 ..........717-597-2112 ......717-597-4096

LGS Specialty Sales, Ltd.. . . . . . . . . . . . . 145..........38 ..........800-796-2349 ......718-542-2354

Lowry Computer Products . . . . . . . . . . . . . 27..........15 ..........800-733-0210 ......810-229-5189

Lucky Strike Farms, Inc. . . . . . . . . . . . . . . 154..........88 ..........650-877-8333 ......650-877-0727

M&M Farms, Inc. . . . . . . . . . . . . . . . . . . . . 28..........89 ..........800-634-7898 ......305-233-0813

Mann Packing Company, Inc. . . . . . . 120-121..........73 ..........800-884-6266 ......831-422-5171

Mann Packing Company, Inc. . . . . . . 128-129..........74 ..........800-884-6266 ......831-422-5171

Mann Packing Company, Inc.. . . . . . . . . . . . 9..........72 ..........800-884-6266 ......831-422-5171

The Marketsol Group, LLC . . . . . . . . . . . . . 29............1 ..........956-782-9933 ......956-782-9937

Miatech . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50..........19 ..........800-339-5234 ......503-659-2204

Mission Produce, Inc. . . . . . . . . . . . . . . . . . 59..........96 ..........888-549-3421 ......805-981-3660

MIXTEC Group . . . . . . . . . . . . . . . . . . . . . . 44..........31 ..........626-440-7077 ......626-440-1557

Monterey Mushrooms . . . . . . . . . . . . 100-101..........27 ........800-333-MUSH......831-763-2300

Mutual Produce Corporation. . . . . . . . . . . . 36..........20 ..........617-889-0035 ......617-884-2544

New York Apple Association, Inc. . . . . . . . . 19..........25 ..........585-924-2171 ......585-924-1629

Ocean Mist Farms . . . . . . . . . . . . . . . . . 56-57..........90 ..........831-633-2492 ......831-633-4363

Olivia’s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38..........13 ..........617-884-1816 ......617-884-4919

The Perishable Specialist, Inc. . . . . . . . . . . 59..........96 ..........305-477-9906 ......305-477-9975

Produce Exchange

Co. of Atlanta, Inc.. . . . . . . . . . . . . . . . . . 34..........71 ..........800-480-4463 ......404-608-0401

Produce for Better Health Foundation . . . 130..........53 ..........302-235-2329 ......302-235-5555

Produce Pro Software . . . . . . . . . . . . . . . . 34..........55 ..........630-395-0535 ......630-572-0390

Progressive Marketing Group. . . . . . . . . . . 59..........96 ..........323-890-8100 ......323-890-8113

Walter P. Rawl & Sons, Inc.. . . . . . . . . . 94-95..........59 ..........803-894-1900 ......803-359-8850

Red Blossom Farms, Inc. . . . . . . . . . . . . . . 15..........91 ..........805-981-1839 ......805-693-0032

Rosemont Farms. . . . . . . . . . . . . . . . . . 80-81........109 ..........877-877-8017 ......561-999-0241

Sambrailo Packaging . . . . . . . . . . . . . . . . 139..........11 ..........800-563-4467 ......831-724-1403

Saven/OSO Sweet . . . . . . . . . . . . . . . . . . . 26..........39 ..........231-946-9696 ......231-946-1420

Sensor Wireless, Inc. . . . . . . . . . . . . . . . . . 27..........92 ..........877-626-3952 ......902-626-3303

Shuman Produce, Inc. . . . . . . . . . . . . . . . . . 7..........93 ..........912-557-4477 ......912-557-4478

Silver Creek Software. . . . . . . . . . . . . . . . . 36..........62 ..........208-388-4555 ......208-322-3510

Southern Specialties. . . . . . . . . . . . . . . . . . 30..........18 ..........954-784-6500 ......954-784-5800

Southern Specialties. . . . . . . . . . . . . . . . . . 59..........96 ..........954-784-6500 ......954-784-5800

Spice World, Inc.. . . . . . . . . . . . . . . . . . . . 160..........69 ..........800-433-4979 ......407-857-7171

State Garden, Inc./Olivia’s . . . . . . . . . . . . . 38..........13 ..........617-884-1816 ......617-884-4919

Sunlight Int’l. Sales . . . . . . . . . . . . . . . . 86-87..........70 ..........661-792-6360 ......661-792-6529

Sunrise Logistics, Inc.. . . . . . . . . . . . . . . . . 43............5 ..........888-518-8502 ......717-721-2518

Sweet Onion Trading Company . . . . . . . . . 24..........51 ..........800-699-3727 ......321-674-2003

Tanimura & Antle, Inc.. . . . . . . . . . . . . . . . . . 5..........63 ..........800-772-4542 ......831-455-3915

Target Interstate Systems, Inc. . . . . . . . . . . 46........108 ..........877-778-2743 ......800-422-4329

Team Produce International, Inc. . . . . . . . . 59..........96 ..........800-505-0665 ......305-513-9596

Total Control Systems, Ltd.. . . . . . . . . . . . . 27........103 ..........514-233-3733

TraceGains . . . . . . . . . . . . . . . . . . . . . . . . . 27..........94 ..........800-287-8787 ......303-702-1299

TraceProduce.Com. . . . . . . . . . . . . . . . . . . 27..........21 ..........866-929-0658 ......208-674-3207

Trinity Fruit Sales . . . . . . . . . . . . . . . . 118-119..........66 ..........559-433-3777 ......559-433-3790

Trinity Transport . . . . . . . . . . . . . . . . . . . . . 44..........16 ..........888-479-2860 ......302-253-0235

Turbana Banana Corp . . . . . . . . . . . . 112-113..........45 ........800-TURBANA ......305-443-8908

Turbana Banana Corp . . . . . . . . . . . . 114-115..........46 ........800-TURBANA ......305-443-8908

United States Potato Board . . . . . . . . 116-117..........41 ..........303-369-7783 ......303-369-7719

United Fresh Produce Association . . . . . . . 21............4 ..........202-303-3400 ......202-303-3433

United States Sweet

Potato Council . . . . . . . . . . . . . . . . 126-127............7 ..........803-788-7101 ......803-788-7101

Virginia-Carolina Peanut Promotions . . . . 163..........50 ..........252-459-9977 ......252-459-7396

Well-Pict Berries . . . . . . . . . . . . . . . . . . . . 135..........95 ..........831-722-3871 ......831-722-6340

West Coast Tomato, Inc.. . . . . . . . . . . . . . . 26..........17 ..........941-722-4537 ......941-729-6778

YottaMark / HarvestMark . . . . . . . . . . . . . . 27........104 ........866-76-TRUST

M A R C H 2 0 0 9 • P R O D U C E B U S I N E S S 169

Page 170: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

F rom the archives of PRO-DUCE BUSINESS, we bringyou this interesting historyof fruit labeling. When itcomes to fruit labels, the

brand not only identifies the grower’sproduct, but sometimes provides inter-esting information about the company,its people and the time period in whichthe label was created.

Such is the story behind the Camellabel, used by Blue Anchor Inc., thenow defunct Sacramento,CA-basedgrower/shipper formerly known as theCalifornia Fruit Exchange. Blue Anchor

The Blas t f rom the Pas t i s a regu la r f ea ture o f PRODUCE BUSINESS . We we lcome submiss ions o f your o ld photos , l abe l s o r adver t i sements a longwi th sugges ted cap t ions. P lease send mater ia l s to : Ed i to r, P RO D U C E B U S I N E S S , P.O. Box 810425 , Boca Ra ton , FL 33481 -0425 , o r e -ma i l in fo@producebus iness. com

P R O D U C E B U S I N E S S • M A R C H 2 0 0 9170

Blastfrom the

Past

labeled its stone fruit sourced from theSierra foothills near Loomis and Plac-erville, CA. The Camel label traces backto Al Ackerman, who, in 1924, wasmanager of the Penryn Fruit GrowersAssociation in Penryn, CA, a small townin the Sierra foothills.

Ackerman was an avid cigarettesmoker who firmly believed there wasno finer cigarette made than the Camelbrand. He wanted to label the fruitpacked by his association after thenames he thought represented the best— Camel. Another member of this asso-ciation, however, was determined to

market this fruit under the Jack Rabbitlabel and had gone as far as having art-work created for his proposed label. Abattle over these names persisted forseveral months until Camel emergedthe winner. The label, depicting a camelin the desert, was never registered, butthe cigarette manufacturer agreed to letBlue Anchor use it on its fruit boxes.

While the Camel label no longerappears on plums, kiwifruit, persim-mons, Asian and Bosc pears, grapes,olives and nectarines, the interestinghistory behind the colorful collector’sitem lives on. ppbb

Page 171: 8th Annual MASTERS OF MERCHANDISING€¦ · How Stater Bros. and Schnuck’s create a balance between conservative and trendy offerings. SPECIAL FEATURES FROM THE PAGES OF THE PERISHABLE

Reader Service # 105