Posts Tagged “feature”
By Jim Prevor, PerishableNews.com
It was just February 28, 2020, right before the shutdowns began in America for the coronavirus, that Joe Coulombe, the founder of Trader Joe’s, passed away. He was 89 years old.
We’ve been visiting Trader Joe’s since before it was purchased by brothers Karl and Theo Albrecht, of Aldi fame, in 1979. We confess that we never once considered it to be racist or in any other way objectionable. We would have said the store was kind of light-hearted in its promotion, with staff running around in Hawaiian shirts, nautical décor, etc.
Coulombe grew up on an avocado farm in Del Mar, CA. He did a stint in the Air Force and then earned a Bachelor’s degree with a major in economics. He continued at Stanford to get an MBA.
The genesis of Trader Joe’s was competition. Coulombe worked for Owl-Rexall, the drugstore chain, and he had been asked to develop Pronto Markets, a convenience store concept. Eventually, Rexall was going to close the division, and Coulombe bought the company—having to sell his house, borrow from Bank of America and get his employees to buy stock. He ran it for several years as a convenience chain and then heard that 7-Eleven was coming into the Pasadena market. He felt he would lose out in a competitive battle. He explained his thoughts in a 2006 article in Stanford Business, which is published by Stanford’s Graduate School of Business:
“The guy with the most money wins. He gets the best locations. It’s very simple,” Coulombe says now, but he knew it then.
His best hope for survival was to come up with a new idea so the stores didn’t compete head on with 7-Eleven. He had to appeal to a particular demographic group that would seek out his stores, even if he couldn’t put them in the best locations.
It took more than a year for the idea to crystallize. Part of his inspiration came from an article in Scientific American detailing a new generation of college-educated adults. Up to 60% of young people would be going to college, the article told him, up from just 2% in the early 30s, when he was born. Clearly, college was a factor that would transform society.
Second, he read about the coming of the Boeing 747, a larger plane that would greatly reduce the cost of foreign travel. Coulombe began to see the demographic slice he wanted to attract: the growing group of people who were well educated and looking for something different—perhaps a bit exotic—but with a keen eye for a bargain.
As he tells it today, he saw his customers as teachers, musicians, journalists—the overeducated and underpaid.
The final piece of the puzzle fell into place on a Caribbean vacation. Lounging on the beach, he saw what Trader Joe’s would look like: a South Seas trading post with fishing nets and oars adorning the walls.
Trader Joe’s became a leader selling premium items, such as specialty cheese. For a while, it was the number one seller of Brie in America.
After he retired, Coulombe served on many boards, including those of Denny’s and Bristol Farms. He was always focused on the idea retailers needed to be uniquely aligned with their clientele. For him, that was often the idea of a new generation of Americans who were far better educated than in the past but not necessarily highly paid. Coulombe used to joke that Trader Joe’s would get great press because journalists fell in that well educated but not necessarily well paid bracket.
May Joe rest in peace.
Now, all of the sudden, a high-school senior claimed that Trader Joe’s was an exemplar of cultural exploitation because it markets many ethnic products under trade names such as Trader José for Mexican foods or Trader Ming’s for Chinese food.
By mock way of explanation of its theme, the Trader Joe’s website says the Trader Joe’s name came from Joe having “been to the Disneyland Jungle Trip ride.” The Wall Street Journal suggested that the inspiration behind Trader Joe’s name may have been the Trader Vic’s restaurant chain, which claims to be the home of the original Mai Tai.
The culture being what it is today, The Wall Street Journal explains that Trader Joe’s surrendered instantly. Trader Joe’s claims it had already decided to phase out the “offensive” names:
“While this approach to product naming may have been rooted in a lighthearted attempt at inclusiveness, we recognize that it may now have the opposite effect—one that is contrary to the welcoming, rewarding customer experience we strive to create every day,” said Kenya Friend-Daniel, the company’s director of public relations.
When the current period of ultra-cultural sensitivity is past, perhaps it will be realized that these “concerns” help no one at all. Nobody gets better educated. Nobody makes more money. Nobody is happier.
Indeed, as The Wall Street Journal pointed out, the high school student who did this will now get into an Ivy League school. Aside from that, we can say the world will be a little less fun and the real problems of the world today will be neglected a little longer.
Wisconsin potato shipments remain light as the harvest has recently started. Good, steady volume is expected in September.
Farmers Potato Exchange of Antigo, WI started digging chip potatoes in late July and tablestock potatoes about two weeks ago.
Alsum Farms & Produce of Friesland, WI believes this may one of the best crops in years with 90 percent of the fields being average or above average for reds, gold and russets.
The company started with red and gold potatoes the last week of July and russets August 12th.
Okray Family Farms of Plover, WI reports Wisconsin’s potato production is located in the state’s 1.75 million-acre Central Sands region, which rests on deposits of sand and gravel.
Grower-shipper RPE Inc. of Bancroft, WI. expects a good potato crop, which has started on time.
Gumz Muck Farms LLC of Endeavor, WI notes potato quality is above average with good size and started harvest over a week ago.
Retail potatoes sales in the U.S. have skyrocketed during the Covid-19 pandemic, increasing 31 percent in dollars and 32 percent in volume in the three months from mid-March. Consumers are believed to be cooking more at home over recent months and favoring produce items with long shelf life. All potato categories across the retail store, except deli-prepared sides, increased in dollar and volume sales.
Most potato categories saw double-digit growth in both measures as dehydrated potatoes experienced the largest increase in dollar and volume sales. Dollar sales increased by 59 percent, and volume sales increased by 49 percent.
Deli-prepared sides decreased by 23 percent in dollars and 51 percent in volume. Over the 13 weeks, total potato sales saw dollar sale increases of 13 percent or more. Fresh potato sales increased by 46 percent, and volume increased by 35 percent.
Every fresh potato type except for fingerlings showed double-digit dollar sales growth. Fingerling potatoes were the only category that decreased in volume sales, down by 7 percent. Yellow potatoes showed the largest increase in both dollar and volume sales. Dollar sales increased by 54 percent, and volume sales increased by 42 percent.
California table grapes are in full swing for 2020 with fruit shipping a little faster than previous seasons and following slightly lower volumes in the Coachella Valley.
Grape shippers are looking at what it considers a new normal volume for 2020. The two major grape-producing regions of the state, the Coachella and San Joaquin Valleys ship 99 percent of the nation’s commercially grown table grapes.
The transition between the Coachella and San Joaquin Valleys was smooth with the demand likely a reflection of shorter volumes from the Coachella Valley and Mexico and excellent San Joaquin Valley fruit quality.
The California Table Grape Commission estimates 104.9 million 19-pound boxes will be shipped this year. This means the 2020 estimate is the same volume as was harvested in 2019.
This season there will be a few new table grape varieties, even if their availability doesn’t impact volume all that much over all. The top 15 varieties harvested in 2019 represented 75 percent of the shipments.
Grapes and stone fruit – grossing about $5400 to Chicago.
Mexican berry exports will be down from originally forecast to its leading market this year due to the COVID-19 pandemic, but is still expecting an increase over 2019.
National Association of Exporters of Berries (Aneberries), reports the country had expected a double digit rise in exports to North America. But in light of the pandemic, it now expects Mexico to see a 5 percent increase over last season in berry exports.
The industry currently has more than 116,000 acres of crops in 22 states and it exports over 400,000 metric tons (MT) each year, a figure that represents $2.5 billion to Mexico. However, 97.5 percent of exports are concentrated in the United States and Canada, so Mexico is looking to diversify into other markets, mainly in Asia and the Middle East.
The primary challenges to gain a foothold of these markets are logistics and commercial relationships. Berry exports must be shipped by air, especially raspberries and blackberries. However, the pandemic has interrupted intercontinental flights.
Aldi will open another 70 stores by the end of the year and currently has 2,000 stores.
The company’s continuing expansion will also include entering the greater Phoenix market and, in 2021, building a new distribution center in Loxley, Ala., to support more expansion on the Gulf Coast, according to a news release. Aldi has invested more than $5 billion in recent years to remodel existing stores and add hundreds of new ones.
“Each new store is an opportunity to serve another community, which is an honor and responsibility we do not take lightly,” Jason Hart, ALDI U.S. CEO, said. “As we continue to expand, we promise to do everything in our power to offer the lowest prices, every day, without exception. In fact, as food costs are rising across the country, we’re lowering prices on hundreds of items to meet our customers’ increased need for savings.”
Along with its aggressive growth in recent years, Aldi has increased its fresh food selection by 40 percent. It has also expanded its e-commerce presence, with delivery available through third-party services for more than 10,000 zip codes and curbside pickup an option at nearly 600 stores.
Aldi’s entry into the greater Phoenix market later this year will include four new stores. Arizona is the 37th state for Aldi.
The company’s new distribution center in Alabama will serve new stores in southern Alabama, the Florida Panhandle and Louisiana, which will be the 38th state for Aldi. The retailer already has 180 stores in Alabama and Florida, plus four regional headquarters and distribution centers in the area.
The Peruvian blueberry industry is expecting a huge 40 percent rise in exports this season to about 165,000 metric tons (MT).
The South American country overtook Chile last season becoming the world’s largest exporter of fresh blueberries, sending 120,000MT to overseas markets. The Peruvian blueberry association ProArandanos reports peak volumes were forecast for early November, when a little over 10,000MT of fruit is expected to be shipped.
Asian countries are set to receive the biggest increase in percentage terms, with exports to the region due to double over last year. Meanwhile, exports to Europe are expected to increase by 50 percent, and to the U.S. by 25 percent. Peru exports about half of its blueberry volume to the U.S., 30 percent to Europe, 15 percent to Asia and the remaining 5 percent to other countries in South America, as well as the Middle East and the Caribbean.
Peru expects to export to Taiwan for the first time this coming season, having gained market access in March. The country began its export season in May, with shipments to Brazil and Thailand.
The four most valuable crops in Monterey County remained unchanged from 2018 to 2019, led by leaf lettuce, which saw an increase of nearly 15 percent, boosted by better pricing for romaine.
Overall, the county’s ag production value increased 3.5 percent in 2019, to almost $4.41 billion, according to the Monterey County 2019 Crop Report, issued by the county’s agricultural commission.
Of the top 10 crops, ranked by production value, seven categories are vegetables, with the exception being strawberries, in the No. 2 slot again, and wine grapes and nursery products. All 10 crops are the same crops from the 2018 list.
Strawberries saw an increase of about 5 percent, with a bump of more than $34 million, to $732.76 million, mostly due to improved fresh strawberry prices.
Head lettuce, Monterey County’s third-most valuable crop, increased almost 12 percent to $514.09 million. Increased production and higher average prices for carton-packed lettuce are the main reasons for the increase.
Overall, vegetable crops saw an increased production value in 2019 of about $228 million, at just under $3.1 billion. The fruits and nuts category dropped about $15.7 million in value to $1.03 billion, but that includes a 25 percent drop in wine grape crop value. Dropping wine grapes from the category gives fruit and nuts a $46 million (5.7 percent) boost from 2018 to 2019.
Monterey County’s top crop values, followed by 2019 and 2018 rankings, are:
Leaf lettuce: $840.56 million, 1/1;
Strawberries: $732.76 million, 2/2;
Head Lettuce: $514.09 million, 3/3;
Broccoli: $457.39 million, 4/4;
Cauliflower $212.38 million, 5/6;
Misc. vegetables: $196.84 million, 6/7;
Celery $186.39 million, 7/9
Wine Grapes: $186.1 million; 8/5
Nursery: $143.98 million, 9/8; and
Spinach: $127.12 million, 10/10.
New York apple shipments should total 30 million bushels this coming season, which would be on par with volume for the average of the last five seasons.
At Hudson River Fruit Distributors, Milton, N.Y., the company added about 25 acres of orchards in 2019 for a total of 500 acres of apples. The company has removed older varieties on 5 to 10 percent of the acreage to fuji and EverCrisp varieties, which keep growing in popularity. More gala and Pink Lady varieties continue to be planted every year.
Hudson River Fruit expects to start shipping for the 2020-21 season by mid-August — the start of the company’s 58th harvest.
Northwest potato shipments will be down this season from Oregon due to drought, and from Washington state because of too much rain. The COVID-19 virus also plays a role.
Washington and Oregon rank second and third, respectively, among the 50 states in potato production, with processing accounting for as much as 90 percent of shipments. Demand is reported strong, for both processed and fresh product.
An estimated 80 to 85 of Oregon grown spuds go to processing, and the hard hit foodservice industry has affected all potato growers in the Northwest and the nation.
Riverside Potato Inc. of Merrill, OR reports no snow pack, and a lack of rain resulting in 300,000 to 330,000 acre feet of water being cut to 140,000. The result is the company estimating it will be down 30 to 35 percent in potato acreage in the valley this season.
Riverside will ship product from 200 to 250 acres this year, compared to 550 to 580 acres a year ago.
Wong Potatoes Inc. of Klamath Falls, OR reports drought conditions were worse than any since 2006. Last season, the operation planted over 900 acres, compared to this year, which totals a little over 600 acres.
To the north in the Columbia Basin, along the Washington-Oregon border, rainfall wasn’t a problem, but acreage likely will be down, according to Potandon Produce of Idaho Falls, ID.
Overall, Potandon sees its fresh potato loadings basically being down, although volume might be up slightly in August. However, September and October, product coming out of storage will definitely be up lower.
In Northwest Washington, Valley Pride Sales of Burlington, WA has had too much rain.
The USDA says production in 2019 totaled 11.6 million pounds, compared to 11.3 million in 2018. Potatoes in storage accounted for 17 percent of 2019 production, compared to 18 percent a year earlier.
Oregon production in 2019 totaled 2.82 million pounds, compared to 3.02 million in 2019. Potatoes in storage accounted for 14 percent, unchanged from the previous year.
Northwest region potatoes remaining to be shipped out of storage on June 1, 2020, totaled 5.3 billion pounds.
June 1 potato stocks in Oregon totaled 403 million pounds. Shipments to date was 2.41 billion pounds. In Washington, June 1 potato in storage totaled 1.97 billion pounds. Loadings to date totaled 85.6 million cwt., or 9.6 billion pounds.
Nationally, the 13 major potato states held 7.5 billion pounds on June 1, 2020, down 4 percent from last year.
Potatoes in storage accounted for 16 percent of the states’ 2019 production, compared with 17 percent for a year earlier.
Potato diggings have just got underway, which is normal.
Following Labor Day, growers will be putting some product in storage and still pack out of the field. Packing out of the field continues until October 10. Potandon will finish on a Friday, packing old crop, and start a new crop Monday or Tuesday and continue on with the crop out of the field. The company then switches into storage and continues to the next July.
South Basin Packing of Gresham, OR notes the crop is coming along for shipments to retailers, although foodservice is certainly down due to the COVID-19 pandemic.
Norman Nelson Inc. (Double-N Potatoes) of Mount Vernon, WA reports acreage in the Skagit Valley, whose season will start around September 1, appeared to be about normal. Acreage is expected to be similar to a year ago.
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