Archive For The “News” Category

Avocado Consumers Spend More Money, Study Claims

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015Keys to the Cart: Driving Hass Avocado Sales at Retail, unveils how avocado purchases impact the value of the retail market basket, and identifies key shoppers and purchase behaviors driving these results, according to a new study by the Hass Avocado Board.

For example, the retail market basket analysis shows that shoppers spend 65 percent more in-store overall when avocados are in the basket; and millennial shoppers spend 73 percent more in-store overall when avocados are in the basket.

“The study, based on IRI household panel data, yields actionable insights into how high-value shoppers, such as millennials, are driving the category by purchasing avocados more frequently and spending more each time,” Emiliano Escobedo, executive director of the Hass Avocado Board, said in a press release. “Equally as interesting is how regional segmentation sheds light on areas that may be poised to deliver the next big wave of category growth.”

When viewing information on total U.S. households, the study found that over half of U.S. households purchase avocados with an average of 33 days between purchases. On average, shoppers purchase avocados six times per year and spend $3.49 per purchase. This equates to an annual avocado dollar spend of $20.76 per household.

The study offers in-depth insight into various consumer groups and geographic regions:

  • Millennial Avocado Buyers — Millennial households are more likely to buy avocados and spend more on avocados than non-millennials. Millennials spend 22 percent more per occasion. Millennial baskets with avocados are $76.36, which is $8.74 above the average basket with avocados and $10.08 greater than non-millennial baskets with avocados.
  • Bulk and Bagged Avocado Buyers — Buyers who purchase both bulk and bagged avocados spend more each year and purchase more frequently than bulk-only and bagged-only buyers. Bagged-only buyers have the highest avocado market basket at $137.93; both buyers also drive a higher-than-average avocado basket at $81.22; and the avocado market basket for bulk-only buyers is slightly below the average at $61.57.
  • Avocado Buyers in Geographic Regions — The retail market basket with avocados in Emerging Regions (Aggregate of Midsouth, Great Lakes, Northeast, Plains and Southeast) is higher than in Developed Regions (Aggregate of California, West and South Central). Emerging Region baskets with avocados are $69.11, which is $1.49 above the national average for baskets with avocados and $2.92 greater than Developed Regions. However, the annual avocado spend is increasing at a faster rate in the Emerging Regions.

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Allen Lund Co. Celebrates 10th Season Supporting Charity Drive

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DSCN4660By Allen Lund Company

La Cañada Flintridge Calif. – The Allen Lund Company (ALC) will be participating in Navidad en el Barrio for the 10th consecutive year.  Working together with growers, shippers, and carriers Navidad is able to provide food baskets to over 15,000 families-in-need during the holiday season.

This year ALC worked with companies such as Wada Farms, Dayka+Hackett, Rainier Fruit Company, Wonderful Citrus, and Grimmway Farms to provide food donations. “We are thrilled with the great response our customers and shippers have given to Navidad this year,” stated Nora Trueblood, Director of Marketing and Communications. “Adding fresh produce to the dinner baskets is of huge value to the families.”

This year ALC also had the privilege of running a shoe drive in the Corporate office. We were able to collect 130 pairs of brand new shoes ranging in all sizes from toddler to teen. On December 12th the shoes will be handed out at St. Vincent de Paul’s annual shoe and toy drive to hundreds of families that wait in line for hours.

This will make the second year that with the Allen Lund Company’s coordination, Navidad Christmas dinners will also be given to 500 families at St. Vincent de Paul during their annual toy and shoe drive.

About Allen Lund Company:

Specializing as a national third-party transportation broker with nationwide offices and over 400 employees, the Allen Lund Company works with shippers and carriers across the nation to transport dry, refrigerated (specializing in produce), and flatbed freight; additionally, the Allen Lund Company has a logistics and software division, ALC Logistics, and an International Division licensed by the FMC as an OTI-NVOCC #019872NF.

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Profits vs. Drought When it Comes to Figs and Almonds

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Figs require very little water.  Even amid long-term forecasts of limited rain and higher temperatures, Kevin Herman believes the trees are likely to produce a good living for the Madera County, CA farmer.

However, the landscape around Herman has changed over the past 20 years.  Fig trees still sprawl for miles across the sweltering flatlands near Fresno, but the orchards in the area have been shrinking for decades.  During the 1990s, there were more than 20,000 acres of figs here — mostly of the black mission and Calimyrna varieties.  Ten years ago, there were 12,000 acres. Now, just 7,000 acres remain, and the problem isn’t going away.

Pragmatic farmers know there are better ways than growing figs to get rich.  Herman is just one of many growers who have traded figs for almonds.  More than a million acres of almonds now grow in California, and the orchards are still expanding.   Herman is convinced there is a financial incentive to grow nuts, including pistachios and walnuts. A n exceptional fig orchard can generate $5,000 per acre, though most don’t do nearly that well.  On the other hand, one can expect $10,000 from an acre of almonds.

Still, Herman plans to keep most of his 4,000 acres of figs; about a million trees.  The reason is water.  Figs need very little — just two feet or so. That’s less than half what it takes to keep most almond trees healthy and productive.  The profits on almonds still offset the cost of giving them more water, but Herman believes that in the future there simply might not be enough water to sustain so many almond groves.  And the California drought continues.

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Cold Train Lawsuit Against Railroad is Amended

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DSCN5413Former Cold Train LLC executives have file an amended complaint for damages against Burlington Northern Sante Fe Railway (BNSF).

An original $41 million lawsuit was filed in April 2015 against BNSF by Cold Train’s former President/CEO Steve Lawson and Managing Member Mike Lerner.  The amended complaint was filed November 20th in U.S. District Court, Spokane, WA.  It details even more significant issues about BNSF actions, which allegedly caused Cold Train Express Intermodal Service’s failure.

In particular, the amended lawsuit states that BNSF engaged in unfair and deceptive trade practices and violated the Washington Consumer Protection Act by wrongfully requiring Lerner, Lawson, and Cold Train, LLC to agree to a 95 percent  carriage requirement, which effectively prohibited Cold Train from using other rail carriers.  BNSF allegedly refused to revise its wrongful 95 percent carriage requirement despite promises to the contrary, and by refusing to allow the Cold Train to ship more than five percent of its traffic on other railroads.

BNSF’s unfair and deceptive trade practices were conducted in the course of its railroad business and caused significant harm to Lerner, Lawson, and Cold Train, LLC

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Younger Consumers are More Apt to Buy Peaches

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Young consumers are more likely to buy peaches than older people, and those 18- to 24-year-olds prefer crisp, firm peaches with good flavor, a new University of Florida study shows.

In fact, people aged 51 to 68 are the least interested in buying peaches. Those of that age who do buy peaches prefer sweet, melting-texture peaches. Although they did not study the reason older people don’t like peaches as much, UF/IFAS scientists think older consumers may have repeatedly bought poor-quality peaches in the past, triggering an interest in other fruits.

Overall, consumers want sweet, tasty peaches that melt in your mouth, she said.
In the newly published study titled: “In Pursuit of the Perfect Peach,” Olmstead led an experiment in which 300 consumers took an online survey, then sampled peaches at two Florida farmers’ markets.

The study showed the “ideal peach” depended on combinations of fruit qualities. Peaches labeled as “so sweet … no sugar was needed” were most likely be purchased, reflecting what previous UF/IFAS research has found about strawberries and blueberries.

Furthermore, like the prior UF/IFAS research on blueberries, even though peaches are known to contain antioxidants, consumers buy them more for their taste than their nutritive value, the study showed.

Although consumers wanted sweet, absolute sugar concentrations, there is something other than sweetness that leads to overall liking, the study showed. It could be acid content and aromas, Olmstead said.

Most consumers prefer melting peaches, but small segments also like crisp and firm fruit, the study showed.

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Overall Apple Sales Decline Due To Smaller Crop

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appleSalesby Columbia Marketing International (CMI)

Wenatchee, WA – Despite some of the earliest shipments on record, a smaller Washington apple harvest is driving tighter supplies and higher prices—particularly on larger-sized fruit and managed varieties. The result has been slower sales on many traditional varieties as supermarkets look to fill shelves with high demand new crop apples like Honeycrisp and Ambrosia.

Washington State apple shipments through November 2nd are 19.3% below the same period in 2014, but nearly 9% higher than two years ago. Early season predictions of smaller-sized fruit and supply reductions, particularly in Gala, Red Delicious and Golden Delicious are proving to be accurate.

Apple category growth continues to be propelled by the newer managed varieties and brands. The overall decline in apple category performance was offset by double digit sales increases among many emerging varieties. Honeycrisp, Pink Lady, Ambrosia™ Sweetango and KIKU® brand apples all posted strong sales increases over last year for the four-week September start-up period.

Some traditional popular apples showed significant sales declines. Gala (-8.0%), Red Delicious (-16.9%), Golden Delicious (-12.1%) and McIntosh (-9.9) all lost sales dollars in September compared to the same period last year.

Don Patella, Regional Marketing Director for CMI, noted that McIntosh sales dropped by nearly 10% year over year despite having one of the lower retail price points in the category. Conversely, Ambrosia had the largest sales increase in the category while selling at roughly $2.40 per pound, one of the higher retail prices of any apple in the month of September.

 

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Fresh Apples Rank No. 1 with Kids

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IMG_6870Fresh apples are the No. 1 fruit consumed by children.
A new study, called  Fruit Consumption by Youth in the United States,  published in the online journal Pediatrics, surveyed more than 3,100 youth from ages two to 19 years, examining fruit consumption and differences by age, gender, race and poverty status.
The study found that nearly 90% of total fruit intake came from whole fruits (53%) and 100% fruit juice (34%), according to the study.  Apples, apple juice, citrus juice and bananas make up about half of total fruit consumption, according to the study.
Fresh apples accounted for 18.9% of total fruit consumption among children, according to the study, and apple juice accounted for about 10%.
“This is fantastic news,” said Wendy Brannen. director of consumer health and education for the U.S. Apple Association, Vienna, Va. “The great thing about this study that has come out in Pediatrics magazine is that it has been repeated everywhere from CNN to U.S. News and World Report to local and regional morning shows from Chattanooga to New York City, and the exposure for us is priceless.”
Brannen said the study, which has been covered by dozens of media outlets since it recently came out, will encourage families to consume more apples.
The study said apple juice accounted for 16.8% of fruit consumption for children ages two to five years, but that fell to 8.8% for children six to 11 years old.  On the other hand, fresh apples represented 22.4% of fruit consumption for children six to 11 years old, but just 8.8% of total fruit consumed for two- to five-year-olds.

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Did You Know Maine Ships Cranberries?

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IMG_2991+1While Maine cranberry shipments are not  considered to be a major player among states that have cranberries, this season it did produce an estimated 2 million pounds of fruit.

Although this year’s cranberry harvest was good, prices were unusually low, making for a “depressing” market, according to a cranberry specialist with the University of Maine Cooperative Extension. “The price was … horrendous for water-harvested berries,” said Charles Armstrong, of the extension.

About 84 percent of all cranberries in Maine are wet harvested, which involves flooding the bog and collecting the ripe berries when they float to the surface.   According to Armstrong, the “break-even point” for wet harvesting requires getting about 35 to 40 cents per pound for the berries.  For the 2015 season, however, the price dipped to between 12 and 20 cents a pound.  In contrast, at $1.50 to $2.50 per pound, prices were good for dry harvested berries, which are picked by hand or raked mechanically.

But only about 16 percent of Maine’s crop is dry harvested because the market for fresh cranberries it is relatively small compared to the market for processed cranberries, which are wet harvested for making juice and cranberry sauce.

Some growers cut their losses and did not harvest this year because of the low prices.  About five of the approximately 30 cranberry growers in Maine declined to harvest a total of about 25 acres.  The biggest costs in cranberry farming are associated with trucking and processing the fruit . Fuel and manpower are other costs avoided by not harvesting.

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Pie Shortages This Thanksgiving?; Canadian Cranberries

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002Canned pumpkin has become scarce in supermarkets in Illinois.  This is a huge concern for Thanksgiving.

Nestlé, whose Libby brand of pumpkin filling is the largest in Illinois, has said their yields of sugar pumpkins have declined as much as a third this year, due to the amount of rain in the summer.   Pumpkins require 90 to 120 frost-free days and, since they are a warm-season annual, are harvested from September through October.

Once Nestlé ships all their canned pumpkin, used specifically for pies, they will not have any to distribute until the new year.  However, there is concern that the issue may be more long-term and there may also be a shortage in 2016.

Illinois is, by far, the top sugar pumpkin producing state in the nation, with more than 19,800 acres harvested in 2014.

Canadian Cranberry Shipments

Amid a record season for Canadian cranberry shipments, most of Canada’s cranberry production is exported to the United States.  In recent years, Quebec surpassed British Columbia as Canada’s biggest cranberry producer.  New Brunswick, Nova Scotia and P.E.I. account for a much smaller share.  While the vast amount of fresh cranberries are shipped for the U.S. Thanksgiving, a relatively small amount will be for Christmas.

 

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Quebec Replaces Massachusetts as No. 2 Cranberry Producer

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005Cranberries are the largest agricultural food product in the state, with an annual crop value of $99.8 million. The industry provides 6,900 jobs and total economic benefit of more than $1.4 billion, according to the Cape Cod Cranberry Growers Association’s 2015 report.
With the climate expected to warm in the decades to come, farmers can expect more insects and more fungal and other plant diseases. The cranberry grows best in temperate climes, DeMoranville said, and long, hot sunny days produce smaller berries that don’t get top prices.
Studies have shown that Cape Cod cranberry growers can expect conditions similar to those now experienced in New Jersey, at the southernmost range of the plant. That area has the highest level of rotted berries, Wick said. The winters also have to be cold enough for ice to form over the flooded bogs so farmers can apply sand that seeps down in the spring and forms a new bed for the plants.
“Eventually, if it got hot enough, you would come to a time when you couldn’t grow cranberries, what may happen is that the entire industry just shifts north,” DeMoranville said.
In essence, that has already happened, as newcomer Quebec overtook Massachusetts in 2013 as the No. 2 cranberry growing region.

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