Archive For The “News” Category
Shoppers of produce who purchase fresh cut (referred to value-added) items often or whenever possible tend to fall into several categories.
Core value-added shoppers were found by The Food and Marketing Institute in a study found that 47 percent have a six-figure household income, 47 percent make three or more shopping trips a week, and 43 percent order produce online. The results have been released in the 2019 Power of Produce report.
Additonally, 40 percent of core value-added buyers are also core local buyers, and 36 percent are also core organic buyers.
“Core value-added shoppers are interesting to retailers, with above-average spending and weekly trips,” FMI wrote in the report. “Much like seen in organic, the presence of children is a point of entry, particularly among high-income shoppers. In urban areas, expanded assortment is likely to do well, including organic value-added assortment and kid-focused solutions.”
Two years ago, 20 percent of shoppers fell into that category. Now the number is 28 percent.
“Despite the increase in purchase frequency, there is significant room for growth, with 64 percent of shoppers being occasional users, at best,” FMI wrote. “Overall, value-added users skew toward higher-income shoppers, older millennials, often with young kids living at home.”
The core value-added shoppers reported several variables that would prompt them to purchase more — better prices (57 percent), longer shelf-life (39 percent), greater assortment (39 percent), greater variety of flavors (36 percent) and better organic offering (32 percent).
Many consumers who land in the category of sometimes buying value-added produce are Gen X (47 percent). Within that periphery group, 49 percent eat fresh fruits and vegetables 4-5 days a week, 47 percent make two trips a week, and 47 percent have a household income of less than $35,000.
For that shopper segment, key triggers to buy more were better prices (63 percent) and longer shelf-life (37 percent), according to the report.
Among consumers who hardly ever buy value-added produce, many are baby boomers (37 percent), limited-assortment shoppers (31 percent), two-person households (33 percent) and people who eat produce less than three times a week (35 percent).
In that group, 58 percent said better prices would prompt them to buy more, but 17 percent said they were unlikely to buy more regardless of changes made.
The cost of eating out is rising faster than eating at home.
The latest USDA Economic Research Service food price outlook reports restaurant food prices in October were up 2.5 percent higher than year-ago.
By contrast, the USDA reports food purchased at grocery stores was just 0.1 percent higher compared to a year ago.
“Between the 1970s and early 2000s, food-at-home prices and food-away-from-home prices increased at similar rates,” the report said. “Since 2009, however, food-at-home and food-away-from-home price growth has diverged.”
While grocery prices have shown signs of price deflation in recent years, restaurant prices have steadily increased.
In part, the different price responses are attributed to variations in the cost structure of restaurants versus supermarkets or grocery stores. Labor and rental costs are a bigger factor with restaurants than grocers.
For this reason, decreasing farm-level and wholesale food prices, which have exerted downward pressure on food-at-home prices, have had less of an impact on restaurant menu prices.
Outlook
For 2018, the USDA notes retail food prices are expected to change between zero to 1 percent, below the 20-year historical average of 2.1 percent.
The USDA said while fats and oils, pork, nonalcoholic beverages, dairy, and processed fruits and vegetables could potentially decline in price, prices for beef and veal, poultry, fish and seafood, eggs, and fresh fruits and vegetables are expected to increase.
“Due to deflation in 2016 and 2017, expected price increases would still leave overall price levels in 2018 lower than in 2015,” the USDA said.
For 2019, the USDA said retail prices are expected to rise between 1 and 2 percent, which would mean the fourth year in a row with lower-than-average inflation.
Fruits and Vegetables
Retail prices for fresh fruits in October were down 1.5 percent compared with October 2017, with apple prices off 3.6 percent and banana prices were off 0.7 percent.
The USDA expects fresh fruit prices to increase 1 to 2 percent in 2018 and increase 2 to 3 percent in 2019.
Retail fresh vegetable prices in October were 0.7 percent higher than in October 2017. Fresh vegetable prices are expected to change between zero and 1 percent in 2018 and increase an additional 2.5 to 3.5 percent in 2019.
California Sun Dry Foods, a leading brand of sun-dried tomatoes, launched the company’s first-ever Sun-Dried Tomato Bruschetta. The new appetizer caters directly to consumers’ preferences for all-natural spreads and conveniently packaged snack foods, and it is a unique addition to the company’s already extensive portfolio.
“We’re excited to expand our segment in the produce category,” said Charles Olin, vice president of sales and marketing at Saco Foods LLC, based in Middleton, WI. Saco Foods acquired California Sun Dry in January of this year. “We’ve come up with a recipe that meets shoppers’ snacking needs, making it easy to enjoy a fast and healthy bite or serve to a crowd.”
The Sun-Dried Tomato Bruschetta, comprising fresh tomatoes, diced onion, a zesty herb blend and the company’s signature sun-dried tomatoes, is the first ready-made appetizer for the company, adding a distinctive item to the brand’s produce set. California Sun Dry’s comprehensive product portfolio includes jarred and bagged sun-dried tomatoes, sauces and spreads.
“We approached the creation of this product by looking at what is trending in consumer purchasing and came up with a solution that meets the growing interest in healthy diets and elevated snack platters. It appeals to ingredient-conscious consumers at a price that is accessible to all,” said Pam Statz, vice president of sales at Saco Foods.
The new bruschetta is adaptable in the kitchen for a wide variety of uses. Suggested retail price for California Sun Dry Sun-Dried Tomato Bruschetta is $4.49 per nine-ounce jar. It is shipped in a six-count case.
East-West routes have been added to Georgia’s Port of Savannah for its chilled produce business.
The port serves as a gateway for perishable products after joining the U.S. Department of Agriculture’s Southeast In-Transit Cold Treatment Pilot Program, according to a news release. Before, the port received produce from Chile, Peru, Uruguay and Argentina that had been cold treated. Now the port serves all of South America, with the ability to import from Spain, Morocco and Italy.
“This is an exciting development that opens Savannah as a new option for growers around the world to reach the U.S. Southeast with greater speed and efficiency,” Georgia Ports Authority Executive Director Griff Lynch said in the release. “Georgia’s central location means shorter overland routes to inland markets, allowing time-sensitive cargo to reach customers faster, fresher and at lower cost.”
Proximity to large cities like Atlanta and Memphis sets the port up as a hub for refrigerated produce. Ships call on the port 35 times a week.
Earlier this year, Americold Realty Trust, which owns and operates temperature-controlled facilities and infrastructure, acquired PortFresh Holdings, which serves the fresh produce industry primarily through the Port of Savannah.
“We’ve got kiwis on the water, and we are getting our first few containers in from Morocco now,” Ken Burke, vice president of client relations at PortFresh, said in the release. “We’re gearing up to handle very heavy business starting with the summer citrus program from Chile and Peru, and for next season, the Spanish and Moroccan produce will really start to come online.”
Savannah can handle time-sensitive items like asparagus, previously shipped as air cargo, but now delivered in containers to the port.
“Not only can we now handle produce that has undergone cold treatment while in transit, Savannah also has a local facility certified to perform re-treatment should that prove necessary,” Cliff Pyron, Georgia Ports Authority chief commercial officer.
A variety of fruit comes through the port, including blueberries, mangoes, apples, pineapples, grapes, bananas and avocados, according to the release.
PortFresh has 100,000 square feet for chilled produce storage, and Americold plans to add an additional facility with 37,000 pallet positions.
By Allen Lund Company
La Cañada Flintridge Calif. –Allen Lund Company has announced the promotion to vice president of three current office managers. These promotions include Bob Rose (in photo), manager ALC San Francisco promoted to vice president produce sales, who will report to ALC President, Eddie Lund; Tracey Lewin, manager ALC Los Angeles now vice president brokerage operations and Lenny Sciarappa, manager ALC Boston also promoted to vice president brokerage operations. Lewin and Sciarappa will both report to Executive Vice President, Jim McGuire.
“The Allen Lund Company has made changes to the organization, elevating current vice presidents to executive vice president status,” stated Eddie Lund, president of the company, adding “this gave us the ability to promote three very successful managers to vice president positions. Both Tracey and Lenny will oversee brokerage operations which will enable them to mentor offices and provide additional leadership. Bob will work with specific ALC produce customers and continue to focus on the development of larger accounts.”
“I look forward to working with even more ALC people along with some of the best customers in the produce industry,” stated Bob Rose, “In my 33 years with the company, I’ve had the good fortune to work with and witness many market changes, technology innovations, and forward thinkers. I thank the leadership team for giving me this opportunity.”
“Joining the Allen Lund Company 23 years ago was one of the best decisions in my career. After meeting Allen, it was clear that this was a high integrity company, and that people that worked within the organization were a true extension of his family,” Lenny Sciarappa stated. “I am honored and thankful to the executive team who gave me this opportunity.”
Tracey Lewin added, “The day I landed at the Allen Lund Company over 30 years ago, was the beginning of some of the most rewarding parts of my life, to date, both personally and professionally. I discovered not only a second family at ALC but a sense of purpose and drive that was consistently met with trust and opportunity.”
About Allen Lund Company:
Specializing as a national third-party transportation broker with nationwide offices and over 500 employees, the Allen Lund Company works with shippers and carriers across the nation to arrange 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. If you are interested in joining the Allen Lund Company team, please click here.
Established in 1976, the Allen Lund Company was recognized by Logistics Tech Outlook for our software division ALC Logistics as a 2018 Top 10 Freight Management Solution Providers, 2018 Food Logistics’ Top 3PL & Cold Storage Providers list, 2017 Supply & Demand Chain Executive Top 100, 2017 Food Logistics 100+ Top Software and Tech Provider, a 2016 Top IT Provider by Inbound Logistics, 2015 Coca-Cola Challenger Carrier of the Year, 2015 Top Private Company in Los Angeles by the Los Angeles Business Journal, 2015 Top 100+ Software and Technology Providers, 2015 Top 100 Logistics IT Provider by Inbound Logistics, a 2014 Great Supply Chain Partner, and was placed in Transport Topics’ “2014 Top 25 Freight Brokerage Firms.” The company manages over 365,000 loads annually, and received the 2013 “Best in Cargo Security Award.” In 2011, the company received the TIA 3PL Samaritan Award, and NASTC (National Association of Small Trucking Companies) named Allen Lund Company the 2010 Best Broker of the Year. More information is available at www.allenlund.com.
By Transparency Market Research
Albany, New York: Raisins are formed by the drying of grapes. Raisins are considered to be the second-most important product of grapes after wine production. When the water content of grapes is reduced to 15%, they are considered as raisins. Raisins are mostly solar/air dried in fields. Raisins are used in many regional dishes, cuisines, desserts, and bakery products. In the global raisins market, Turkey and the U.S. hold prominent market shares as far as the production of dried grapes is concerned. Turkey is the world’s largest producer of raisins, and their production was 429,000 tons in 2014, a remarkable growth of 27% since 2000. Followed by Turkey, major producers of raisins are the U.S., Iran, China, and Chile. In the global raisins market, majorly consumed raisins are natural seedless raisins, which also have many applications in food and beverages. In addition, raisins are used in the garnishing of food dishes to enhance their texture, aroma, and taste.
The health consciousness wave has inundated the global market with nutrition-rich foods and beverages, with an authentic brand commitment to quality, taste, and flavor. In the global market, raisins have gained significant applications in households, food processing industry, and baking industry, Raisins are also very popular among food service providers, owing to their multiple health benefits and good taste, which is helping them in attaining customer attraction. With the frequent launching of food products, the dried fruit market has become more competitive, and manufacturers are following the customer-centric approach to become leaders in the raisins market. Many food manufacturers are very keen on incorporating raisins in their products to enhance the organoleptic properties of their products. Consumers are increasingly moving towards food products that are made from natural ingredients without any chemical or artificial additives. There is also a noticeable shift towards the consumption of dried fruits such as raisins. Manufacturers are developing products with natural ingredient compositions and reduced processing to cater to the burgeoning consumer demand for nutritional and sustainable foods. They are also offering convenience and on-the-go foods with a healthy twist to satiate the millennial palates of consumers.
Many food companies are using raisins in their products, and introducing different types of snacks and bakery products consisting raisins; they can be used as toppings in various bakery products, which add the essence and good flavor of the raisins to the particular food product. Dried raisins is the most common dried fruit, and are widely used in various bakery products to increase their flavor and nutritional value. With the increasing flavor inspiration and demand for healthy food ingredients in food products, food manufacturers are emphasizing on incorporating healthy foods in their final products to cater to the demand from their broad range of customers. In the bakery industry, raisins are used in baked goods to enhance their texture and flavor. Incorporating raisins in bakery food products imparts a tangy flavor to these products, and also add to their nutritional value.
Over the last few decades, there has been a noteworthy boom in the bakery industry, which directly results in the increased demand for raisins among manufacturers in this industry. Innovation in the product line and frequent product launches have made the raisins marketplace more competitive than earlier, which compels manufacturers incorporate natural and healthy food ingredients into their product lines to become leaders in the market.
Growing economies have increased the essence of customization in final products. Manufacturers are now using mass customization as a strategy to fulfill the demand of their broad range of customers. The same trend is also being followed in the breakfast cereals market. According to data published in 2013, the varieties of morning breakfast cereals have increased from 160 varieties in 1970 to 340 varieties in 2012. In order to increase the variety of breakfast cereals, manufacturers are utilizing dried fruits as an ingredient in morning breakfast meals to fulfill the nutritional demand. Raisins are one of the most commonly used dried fruits that are incorporated in breakfast cereals.
Transparencey Market Research
Transparency Market Research is a global market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants, use proprietary data sources and various tools and techniques to gather, and analyze information.
Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.
By Bailey Farms
OXFORD, NC. – Due to positive consumer reception of its DulceFina peppers, Bailey Farms, the leading shipper of specialty peppers in the country, announces expanded acreage for its premium sweet pepper line.
Since 1989, Bailey Farms Incorporated has been growing peppers. Beginning as a father and son duo, Bailey Farms now has family farms in North Carolina, Florida and Mexico offering a wide variety of chile, BellaFina and mini-sweet peppers.
A crave-able mini-pepper, the new DulceFina is sweet-tasting, crispy and deliciously snackable. Additionally, DulceFina boasts an exceptional flavor and a distinctively crunchy texture.
Rolled out in 2018, DulceFina is brightly colored, filled with flavor and is crispier and sweeter than other peppers.
“Our research and retail partner feedback has revealed a growing trend within the pepper category of consumers looking for a premium tasting snacking pepper that stands apart on the shelf” said Randy Bailey, president of Bailey Farms, Inc. “Last year was our initial rollout pilot to validate this and 2019 will be the year where we expand acreage to meet the consumer demand.”
In consumer taste tests against current yellow and orange mini sweet peppers, DulceFina was preferred 3 to 1. It’s no surprise consumers most often used the word “sweet” to describe their flavor—DulceFina peppers have an average higher Brix than retail yellow and orange mini sweets. One sweet, crispy bite will have everyone coming back for more!
DulceFina is available year-round and is packed loose and in 12 oz bags.
Mexican producers are growing an increasing amount of product in greenhouses each year.
In 2017, there were 9,083 acres of greenhouse production in Mexico. In 2018, there were 57,454 acres of Mexican produce grown under protected agriculture, such as shade houses.
Greenhouses can increase yields and allow growers to control variables such as heating, cooling, humidity and irrigation as well as provide a barrier against pests.
At Chamberlain Distributing Inc. in Nogales, AZ, all of its cucumbers, vine-ripe tomatoes and bell peppers are grown under protected agriculture, while 80 percent of its roma tomatoes grown under protection. Overall, it is estimate 60 percent of the firm’s volume is grown under protected agriculture. This is up from about 10 percent a decade ago.
Greenhouses and shade houses are credited with allowing shippers to provide customers with consistent, high quality perishable items in a reliable manner. It also allows seasons to start earlier and for harvests to be extended.
At Ciruli Bros. LLC in Rio Rico, AZ, its Mexican grown cucumbers, bell peppers and other vegetable are all grown under protection. It is cited as being more cost effective and growing in open fields, allowing more control, better harvests and better crops.
In the U.S. the trend toward growing more profitable cannabis has contributed to the growth of greenhouses and shade houses in Mexico, where Mexican operations are replacing or complementing greenhouse vegetables in the U.S. and Canada.
Los Angeles, California – Pacific Trellis Fruit is bringing back JAM GRAPES, the new black seedless grape variety from Brazil it introduced late last year. During its initial launch, the premium grape variety had only been available from October through January.
“We saw good interest when we started talking to retailers late last fall. In order to ensure a good balance between quality and supply, we closely monitored availability – to confirm everything is exactly where we wanted it to be,” explains Josh Leichter, General Manager of Pacific Trellis Fruit/Dulcinea Farms and added: “Very quickly, we were able to confirm that this grape fulfilled our expectations – and those of our retail partners – so we decided to bring them back as soon as possible.” Positive feedback from retailers was echoed by consumers and JAM GRAPES will be back on supermarket shelves in May and June, taking advantage of Brazil’s first semester harvest.
“For the current season we are adding a 1 pound clamshell as an option. It is the preferred pack style for high-margin grape varieties,” Leichter explained. The fruit will continue to be available in 2 pound clamshells as well as random weight bags.
About Pacific Trellis Fruit / Dulcinea Farms:
Established in 1999, Pacific Trellis Fruit and is one of North America’s top year-round growers, packers and marketers of premium fresh fruit, including grapes, peaches, plums, nectarines, cherries, and citrus as well as pears, apples, kiwis and mangos. With the acquisition of Dulcinea Farms in 2014, Pacific Trellis Fruit added PureHeart® mini seedless watermelons, Tuscan Style™ Cantaloupe and SunnyGold® yellow mini seedless watermelon amongst other premium melons to its portfolio. Pacific Trellis Fruit is headquartered in Los Angeles, CA – with sales offices in Fresno, CA, Gloucester, NJ and Nogales, AZ.
An increase in fruit imports of South America fruit is expected by The Port of Virginia due to the recent completion of the USDA’s Southeast In-Transit Cold Treatment Pilot program.
“We’re the U.S. East Coast’s leading vegetable exporter, and this designation positions us to achieve the same success with imported fruit,” John Reinhart, CEO and executive director of the Virginia Port Authority, said in a news release. “This is important for logistics and supply chain managers importing agricultural products because it means this cargo will get to its market more quickly.”
Through the USDA program, which the port joined in October 2017, refrigerated fruit from South America can enter the port. The program includes containers of blueberries, citrus and grapes from Peru; blueberries and grapes from Uruguay; and apples, blueberries and pears from Argentina, according to the release.
The program allows South American fruit to enter more ports in the U.S., following a two-week cold treatment process to guard against pests. Before the program started in 2013, fruit from certain export markets were limited to Northeast ports, according to the release. From there, they were distributed to southern states.
The new port of entry will cut transportation costs and increase fruit shelf life, according to the release.
Other participants in the USDA program include ports in Wilmington, N.C.; Charleston, S.C.; Port Everglades, Fla.; Palmetto, Fla., Jacksonville, Fla.; Fort Lauderdale, Fla.; and Savannah, Ga.