By Category Partners
Idaho Falls, ID – Why aren’t consumers eating more produce; and, how can the produce industry respond to meet their needs and bolster sales?
These are precisely the critical questions Category Partners (CP) and Beacon Research Solutions (BRS) sought to answer, in their just-released “Barriers to Purchase” study.
Understanding specific challenges the industry needs to overcome, in its sales and marketing efforts, is a key step in accelerating growth; particularly in today’s complex retail environment and among an ever-changing consumer base, which spans four generations and comprises diverse motivators. This is the intent of the “Barriers to Purchase” approach, which – opposite typical research – focuses first on what prevents consumers from buying, vs. triggers.
The study revealed a sizeable portion of shoppers, across a nearly 70-year age range, who aren’t consuming much produce – not even half of consumers eat produce daily and around 10% only eat weekly – and for a multitude of reasons (often, generation specific). The study also presented an opportunity, as all generations seemingly want to eat more produce; if the industry can respond to their unmet needs. The study identified 17 relevant barriers and possible implications, including:
Price/too expensive – even with an improving economy, price was the top barrier, selected by more than 50%. Price competitively and promote strategically, so consumers perceive value – and are incented – in their purchases
• Spoiling/inability to eat it all – ensure shoppers know how to select, store and use. Also consider package size in overcoming this barrier, as more consumers “right size” their purchases
• Poor appearance/quality/color – reinforce quality and related control practices throughout the supply chain (especially store-level rotation, culling and merchandising). Similarly, ensure
shoppers understand proper selection practices, per item (i.e., appearance is not the leading factor for all produce; consider shopper education for flavor, touch and smell)
• Preferred type/variety not available – establish awareness of shoppers’ preferences, provide a responsive assortment and avoid controllable out-of-stocks
• Packaging is too large and lack of bulk/loose items – U.S. households are shrinking, so ensure shoppers have a balanced choice
Related to the barriers, the study also pinpointed meaningful motivators, throughout shoppers’ decision-making process for produce. The results surprisingly indicated consumers – while planning for, and selecting, produce – may be slower to adhere to broad trends; like social media/blog use, convenience and veg-based diets. Study findings include:
• More consumers are deciding in store vs. planning
• When planning, shoppers are leaning toward traditional vehicles (ads/circulars, personal recipes, cookbooks), vs. newer sources (social media, blogs)
• Produce brings shoppers in store, with zero percent selecting home delivery as a purchase format
• Flavor, as a driver, is nearly as important as health
• While “locally grown,” “natural,” “organic” and “non-GMO” are top of mind for many, 31% of shoppers are not seeking this information
• Pescatarians, vegetarians and vegans receive much attention, but 95% of shoppers still are meat eaters
• Most consumers enjoy cooking, often devoting more than 30 minutes and several ingredients
CP & BRS worked with leading produce suppliers and commissions, including Domex Superfresh Growers, Chelan Fresh, Wada Farms, Duda Farm Fresh Foods, Farm Fresh Direct, B&C Fresh, International Fruit Genetics and the California Strawberry Commission, to conduct a multi-generational study. In June 2017, CP & BRS surveyed 4,000 produce shoppers nationwide – evenly split among Millennial, Generation X, Baby Boomer and Silent generations – to better understand what deters shoppers from eating and buying more produce; and what changes can be made to positively influence their behaviors
The study’s ultimate goal is to provide the industry actionable insights, both barriers and motivators, so all members – especially retailers and suppliers – can align to develop sales and marketing programs that connect with shoppers and strengthen consumption and sales. Stay tuned in coming weeks, as we’ll follow up with “Barriers to Purchase” findings specific to Millennials, Generation X, Baby Boomers and the Silent generation.
About Category Partners:
Aa nationally recognized resource, among produce companies and retailers, for delivering actionable business/consumer insights, marketing/sales plans and technology/data solutions. Category Partners is grower/shipper owned and headquartered in Idaho Falls, ID, with offices in Denver, Atlanta and Laguna Hills, CA.
About Beacon Research Solutions:
a leading consumer research and data analysis firm, who works with clients to deliver need-based insights. Beacon’s methods for identifying and evaluating key business insights, include: consumer surveys; focus groups; syndicated research; category reviews; trade research; in-store testing; loyalty-card data analysis and promotion/pricing analysis.
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Florida citrus losses are reported the worst in 75 years between Hurricane Irma and citrus greening, plus nearly two dozen Florida counties are declared disaster areas.
by Malena Carollo, Tampa Bay Times
After a decade of fighting a losing battle against a tree-killing disease (citrus greening) and declining yields, growers thought this year’s abundant crop promised a turnaround. Then, just weeks before harvest, Hurricane Irma hit.
“This was a real punch in the face,” said Andrew Meadows, spokesperson for citrus trade organization Florida Citrus Mutual.
Overcome by almost $800 million in losses from the hurricane, the state’s citrus industry is suddenly facing its lowest orange yield in 75 years, far worse than forecasts expected just a couple of months ago.
Although damage is still being assessed, the latest numbers released by the state put expected losses at roughly $761 million. Early estimates suggest that this year’s crop will be the single lowest yield since 1942.
To read the rest of the story, please go to: Tampa Bay Times
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19 Florida Counties Declared Disaster Areas
A natural disaster declaration for 19 Florida counties issued by the USDA acknowledges widespread damage by Hurricane Irma.
As a result of the declaration farmers and ranchers in those areas are able to seek support, including emergency loans, from the Farm Service Agency, according to a news release.
“I thank U.S. Secretary of Agriculture Sonny Perdue for taking action to support Florida’s farmers and ranchers still picking up the pieces from Hurricane Irma, Florida agriculture commissioner Adam Putnam said in the release. Our preliminary estimates peg the total damage at more than $2.5 billion, but it’s important to recognize that the damage is still unfolding.
“The disaster declaration provides much needed support, and I will continue working with (Florida Gov. Rick Scott) and our leaders in Washington to get Florida agriculture the relief it needs to rebuild,” Putnam said.
The USDA released its first citrus crop estimate recently, but industry members say the department grossly understated the extent of the damage from Irma.
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By Pure Flavor
Leamington, ON – With demand for its premium greenhouse vegetables continuing to grow, Pure Flavor® announced recently the investment of more than $105 million USD to build a 75-acre state of the art high tech greenhouse facility & distribution center in Peach County, GA south of Atlanta.
The first crop of Tomatoes-on-the-Vine and Long English Cucumbers will be planted in Summer 2018 to be harvested in mid fall that year.
“We at the Georgia Department of Agriculture and Georgia Grown are proud to welcome Pure Flavor® to our great state”, stated Gary W. Black, Georgia Agriculture Commissioner. “I am confident this innovative venture will prove to be a real asset to Peach County and to Georgia’s entire agricultural sector. Pure Flavor® has indeed found the ideal location for this type of operation and I look forward to working with them as they continue to grow and expand”, said Black.
The new greenhouse complex, located just 90 minutes south of Atlanta and less than 3 miles from I-75, will grow tomatoes & cucumbers year-round. Coupled with Pure Flavor’s existing farms throughout Canada, USA, and Mexico, growing in Georgia will further expand the company’s reach along the eastern seaboard as far north as Virginia, west to Texas, and all the way down to south Florida with premium greenhouse grown vegetables.
“The strategic investment in Peach County, GA is one that will not only expand our acreage but also creates opportunities to strengthen & grow our retail & foodservice partnerships across the southeast with Georgia grown vegetables”, said Jamie Moracci, President. Moracci & his partners spent nearly 2 years researching locations across the USA for this expansion. With the Midwest region, already over saturated with a variety of projects and an abundance of product, developing in Georgia with the first significant high-tech build of its kind in the state, is going to be a game changer.
Key Project Facts:
- Location: Fort Valley (Peach County), Georgia – 3 miles off I-75
- Start of the art, high tech 75-acre greenhouse complex
- Built in three (3) phases of 25 acres over 5 years
- Investment: $105 million
- Distribution area: Georgia, Florida, North/South Carolina, Alabama, Louisiana, Arkansas, Mississippi, Tennessee, Virgina, Kentucky, Missouri, Texas
- New 75,000 sq. ft. distribution center on site to service the southeast
- Installation of High Pressure Sodium (HPS) lighting to assist with year-round growing
- Phase 1 commodities: Tomatoes & Cucumbers
- Creating 200+ new year-round job opportunities over 5 years
- Largest facility of its kind in southeastern USA
“Built in 3 phases of 25 acres over the next 5 years, the financial investment we are making further demonstrates our goal of growing our business in a significant region and not looking at the investment as just growing in a state”, said Jeff Moracci, Chief Financial Officer. With a potential reach of nearly 80 million people in less than a 24 hrs. drive, a regionally grown message featuring the Georgia Grown emblem will help leverage the brand with consumers. The first phase of the project of 25 acres broke ground in September.
International greenhouse manufacturer Havecon has been retained to build the facility in Georgia. Using state of the growing systems, Pure Flavor® will have diffused roof glass installed to take advantage of the southern US, nutrient rich sunlight during peak season. Pure Flavor® will also be installing High Pressure Sodium (HPS) lights to be used as supplemental energy to help grow through the winter months.
““A leader in the global marketplace, Georgia has become a hotspot for international companies who are looking to expand their footprint in the U.S.,” said Pat Wilson, Commissioner, Georgia Department of Economic Development. “Pure Flavor® is taking a highly-specialized, dynamic approach to agriculture that our workforce is well suited to support. With a solid logistics infrastructure and robust network of companies, Pure Flavor® will have all they need to thrive in our state. Congrats to Peach County on this incredible win.”
Under the Pure Flavor® brand, the company grows & markets an extensive variety of greenhouse tomato, bell pepper, cucumber, eggplant, and living lettuce that is grown in Canada, USA, and Mexico. Founded in 2003, Pure Flavor® has experienced significant growth year over year with its expanding product offering. With distribution centers strategically located in Leamington, ON, Detroit, MI, San Antonio, TX, and soon to be Peach County, GA, Pure Flavor® provides year-round availability of premium greenhouse grown vegetables.
“Having Pure Flavor invest in Peach County is proof positive that our community is attractive to newcomers and major international companies’, said BJ Walker, Executive Director, Development Authority of Peach County. “It is confirmation that we possess all of the necessary qualities and assets that are ideal for a business to succeed and grow and we are thrilled and excited to welcome Pure Flavor into the Peach County family!”, said Walker.
“Being strategically located in Georgia with our new greenhouse will enable Pure Flavor® to significantly extend its reach to open more distribution channels along the southeastern seaboard while further supplying existing key retail & foodservice partners across the southern US”, commented Matt Mastronardi, Executive Vice-President.
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In typical fall fashion here are some of the better loading opportunities from four important produce U.S. shipping states.
Washington:
While apple shipments may not set a record this season, plenty will be available for hauling as another big crop is forecast. Last season harvest was so huge, believe it or not, some shippers are still loading “old” apples from last season. That’s okay, if your receiver is aware of it. Just make sure they know what is being loaded. Nearly 1800 truckload equivalents of apples are being loaded weekly primarily from the Yakima and Wenatchee valleys. Around 400 truckload equivalents of Washington pears are being shipped as well, with the best volume yet to come.
Idaho and Oregon
Another big crop of Idaho potatoes will be shipped between now and late next summer. Nearly 1600 truckload equivalents of primarily russet potatoes are being loaded weekly from the four primarily Idaho shipping areas lead by the Idaho Falls area.
Western Idaho and Malhuer County Oregon are shipping over 600 truckloads on storage onions per week. Last winter a number of onion storage sheds and other buildings were heavily damaged in Nyssa and Ontario, Oregon due to two separate winter storms, but adequate facilities appear to be in place for the new shipping season.
South Texas Produce Shipments
Literally dozens of tropical fruits and vegetables are crossing the border from Mexico at Pharr, Texas, but a majority of the are in light volume at this point. Vine ripe tomatoes are perhaps providing the heaviest volume with about 500 truckloads per week. Limes may be among the heavier volume tropical fruits with nearly 350 truckloads weekly.
Many Mexican items are just getting underway and in the coming weeks will provide better hauling opportunities ranging from strawberries to raspberries, honeydew, papayas and pineapples among others.
The Lower Rio Grande Valley grapefruit harvest is barely underway with good volume arriving in November.
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Expansion plans have been announced by BrightFarms and Metro Distribution.
BrightFarms has broke ground October 16th on its fourth greenhouse, this one in Wilmington, OH.
The facility will be 120,000 square feet and supply salad greens and herbs to retailers in the Cincinnati, Dayton and Columbus metro areas, according to a news release.
Based in New York City, BrightFarms envisions building greenhouses around the U.S. to provide local product.
“There is a large opportunity for the supermarket produce department to grow if they can source locally, CEO Paul Lightfoot said in the release. “BrightFarms sees a clear opportunity in the market to expand our model for local produce across the country.”
BrightFarms continues to report increasing interest in its product, as it did earlier this year when an early finish for leafy greens in Yuma, Ariz., and a late start in Salinas, Calif., resulted in gaps in supply.
“We have seen demand for our local greens climb sharply as retailers have come to rely on the stability and consistency of our product,” Lightfoot said.
According to its website, Bright Farms has been working in urban agriculture since 2006. Since 2011, the company has been on a quest to bring commercial scale urban agriculture to the market, take our farms and the industry to the next level, and change the way we eat as a society.
METRO DISTRIBUTION
Metro Inc. announced a projected $400 million investment over six years in its Ontario distribution network. The firm will modernize its operations in Toronto between 2018 and 2023 by building a new fresh distribution facility and a new frozen distribution facility, both of which will leverage technological improvements like automation.
The company’s distribution network in Toronto was built mostly over 50 years ago and no longer meets the evolving needs of the business.
Metro currently operates six distribution centers in Ontario. Four centers are located in Toronto and two in Ottawa. Together, they provide employment to over 1,500 employees. Metro’s
decision to modernize and automate a part of its distribution network will result in an anticipated loss of approximately 180 full-time and 100 part-time positions starting in 2021.
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More container volume is being handled at the Port of Los Angeles, and a California company is expanding its presence in South Texas.
Container volumes increased over 16 percent from over the previous year at the Port of Los Angeles, which had its busiest July ever. This took place as U.S. ports continue to post record traffic numbers, including the major West Coast entry point for many Central and South American fruits and vegetables.
L.A. had almost 797,000 20-foot equivalent units (TEUs) came through the port, the most in any July since it opened 110 years ago, according to a news release.
The port also set a 12-month shipping record for a Western Hemisphere port during the most recent fiscal years.
Port officials expect the calendar year to break records as well. Container volumes are 9.5 percent over 2016 volume to date, a year that also saw records fall.
The International Longshore and Warehouse Union recently extended their contracts with the terminal operators at the port until 2022.
NEW TEXAS DISTRIBUTION CENTER
Index Fresh of Bloomington, CA broke ground earlier this year on a new distribution center in South Texas that should be ready to receive fruit sometime in November. The company is anticipating continued growth with the U.S. consumption of avocados.
Index Fresh has used a commercial warehouse facility in the Rio Grande Valley for several years at Crosspoint Cold Storage, but decided it was time to expand and build its own facility.
Located in Pharr, The Index Fresh distribution center is being built a stone’s throw from the Pharr-Reynosa International Bridge, which is a major entry point for Mexican avocados and other fruits and vegetables originating south of the border. The facility will be used to pre-cool and condition the fruit.
It will have the capacity to handle 2,600 pallets of avocados, with 10 separate ripening rooms. Mexico exports more avocados to the U.S. than any country, with South Texas being the most popular port of entry.
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Asparagus imports are rising. Meanwhile, a diet avocado is being introduced.
Imported Peruvian asparagus is now arriving a U.S. ports in normal volume after experiencing tight supplies, at least compared to this time last year. .
Now both Peru and Mexico are hitting stride when it comes to volume. As a rule, Peruvian asparagus imports move into good volume in May, which continues through the middle of January. At this time there will be heavier imports of Mexican asparagus from Caborca and central Mexico in the winter and summer.
This year, imports of Peruvian asparagus have been lower compared with year-ago levels due to adverse weather conditions earlier in the year, which took a toll on yields. Season-to-date volume from Peru is down 800,000 to 1 million boxes compared with a year ago. Through September 30th, the USDA reported total imports of Peruvian asparagus totals 6.01 million 11-pound cartons, off from 7.35 million cartons at the same time a year ago. The U.S. receives about 70 percent of Peru’s fresh asparagus exports.
So far this year, Mexican asparagus shipments to the U.S. were 5.8 million cartons through September 30th, up seven percent from the same time a year ago.
Peruvian Avocado Imports
The United States received a record 145 million pounds of Peruvian avocados this year, helping meet demand in a market short of domestic supplies.
Diet Avocados
A Spanish fruit company has invented a diet avocado with 30 percent less fat.
Eurobanan has introduced a diet avocado under its Isla Bonita brand. It is describe as having a mild flavor and juicier pulp, and also ripening fast yet oxidizing ie, turning so a shade of gray much more slowly. This means it should outlast a full-fat conventional avocado. It is said to be great for the preparation of smoothies, cold soup, gazpachos, cocktails, and many other dishes.
Its official launch is later this month at a trade show in Madrid. However, but unfortunately for Americans, the diet avocado will only be sold in Spain for the time being.
Spanish heart-health advocates tested the fruit’s nutritional claims, and have since affixed seal certifying it does have almost one-third less fat and can be grown almost year around.
Avocados have the type of fat deemed good by doctors because it is monounsaturated, and helps lower bad cholesterol if eaten in moderation.
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A new box for organic avocados has been introduced, while another company has come out with Duo Potatoes.
Mission Produce of Oxnard, CA. has introduced a new box for organic avocados so it will be distinctive to employees in the back room and consumers in a supermarket.
The box, with a purple stripe on white background, comes in a single-layer flat and double-layer box.
The company continues to use purple mesh bags for some organic avocados and purple price look-up stickers to distinguish the organic avocados.
“This box will call out organic avocados in the back room as well as on the sales floor,” Megan Berenbach, organic category manager for Mission Produce, said in a news release. “It helps to highlight the organic fruit for backroom staff and will help them identify inventory as they pull Mission organic avocados for display.
“As the organic category grows, we made it a priority to support our customer’s needs with updated packaging,” she said.
“Based on the popularity and growth of the avocado category — and especially organic avocados — we feel strongly that we need to do more to highlight organic for retailers and consumers alike,” said vice president of marketing Robb Bertels. “According to the Hass Avocado Board, over 50 percent heavy avocado users consider organic to be an important attribute when they are on the path to purchase. We don’t expect that to slow down, and anything we can do to highlight organic will benefit the category.”
SIDE DELIGHTS
Triple-washed red and yellow potatoes in the pack can be cooked in the bag in eight minutes and is being launched as Duo Potatoes, according to a news release.
“Colorful potatoes scream ‘healthy’ and Side Delights Steamables provide that extra pop of color to dinner plates in eight minutes or less,” Kathleen Triou, president and CEO of Fresh Solutions Network said. “We are researching and listening to what our customer wants and continue to provide variety and excitement to our popular product line, helping our retailers’ bottom line.”
The Steamables lineup also includes Russet Potatoes, Medley Potatoes, Golden Potatoes, Red Potatoes, Fingerling Potatoes, Purple Potatoes and Petite Sweet Potatoes.
Fresh Solutions Network reports the microwaveable/steamable fresh potato segment is growing, citing Nielsen data.
The category is up 12.6 percent in volume sales and up 28.4 percent in dollar sales from last year.
Fresh Solutions Network, a group of growers and shippers, is the exclusive supplier of Side Delights items.
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Increased shipments from Mexico with ocean carrier World Direct Shipping is coming to Port Manatee in Central Florida with addition of another weekly stop to the port. At the same time, damage estimates to Florida produce are coming from the state.
World Direct Shipping has announced the increase in service to the port by the company, which was first established in 2014. Ships depart from the north-central part of Veracruz, from Port Tuxpan, in a service starting January 12th.
“We couldn’t be happier with how the initial service has thrived, with our 2 ½-day transit time offering the fastest short-sea connection between Mexico and the U.S. Southeast, Northeast and Midwest for refrigerated produce and other cargos,” said Carlos Diaz, director of Palmetto, Fla.-based World Direct Shipping, in a news release.
The new service complements the other World Direct Shipping arrival at the port, starting from Coatzacoalcos, Diaz said. Tuxpan is the closest commercial port to Mexico City, providing for more opportunities for fruit exports.
The weekly schedules call for Friday departures and Monday arrivals for the new service. Currently, ships leave Coatzacoalcos on Saturday and arrive at Port Manatee on Tuesdays.
Florida vs. Hurricane Irma
While Florida isn’t exactly a mecca for produce loads during the fall and winter, there are going to be less opportunities than ever in the coming months as the state works to recover from the damages resulting from Hurricane Irma.
The early assessment of total damages to agricultural production in the state is $2.5 billion.
Over 420,000 acres of citrus production were hit, according to the Florida Department of Agriculture and Consumer Services.
Losses were heaviest in Collier and Hendry counties, which estimated losses at $2,500 an acre for about 94,000 acres. Eleven other counties projected losses of $1,750 per acre for about 254,000 acres, and Polk and Martin counties estimated damages at $1,100 per acre for about 72,000 acres.
Many trees were just a few weeks from harvest when the storm hit.
Along with fruit loss and infrastructure damage, growers are worried over trees dying due to flooding, which is not included in this initial estimate.
Florida citrus sales still hover near $1 billion, despite the downturn in the last decade due to citrus greening disease.
Damage to the other fruit and vegetable crops in Florida, were found on over 163,000 acres.
Because the planting season was just beginning for most vegetables, the crop losses will result in shorter seasons, market distortions and lower yields because of the storm diluting the pesticides that had been applied to fields.
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Californa prune shipments are expected soar by nearly 100 percent this season. Meanwhile, a significant expansion involving two produce companies is taking place in North Carolina.
The USDA’s National Agricultural Statistics Service believes the 2017 California prune harvest will total 105,000 tons, a 99 percent increase over 2016’s 52,851-ton crop.
This year, the industry is returning to a more normal size harvest. Harvest concluded about a month ago. Weather in recent years has created challenges for prune growers, but growers say the trees are rebounding this year. California is the world’s largest producer of prunes, accounting for 40 percent of the world’s supply and nearly of all the supply in the U.S.
LIPMAN EXPANDS FARMING NETWORK
By Lipman
TABOR CITY, N.C. — As a part of its commitment to sustainability and high-quality farming, Lipman Family Farms, North America’s largest field tomato grower, has partnered with North Carolina-based Table Fare Farms. Lipman will be the exclusive marketer for the farm, which currently grows watermelons in Tabor City, N.C., and is owned by Larry and Tammy O’Ferrel.
Currently affiliated with more than 50 local farmers in more than 20 states, Lipman partners with growers around the country through its Lipman Local program in order to bring its customers local, quality produce year-round.
“We are very excited to partner with Larry and Tammy O’Ferrel,” said Scott Rush, director of Lipman Local. “Table Fare Farms will be a great addition to the Lipman family and will allow us to expand our local produce offerings to our customers.”
Lipman plans to expand this partnership to include other commodities in the future.
“Working with Lipman is the ideal next step for us” said Table Fare Farms owner Larry O’Ferrel. “We are looking forward to a long and fruitful relationship.”
About Lipman
Based in Immokalee, FL., Lipman is the largest open-field tomato grower in North America, providing year-round fresh produce through an integrated network of research and development, farming, processing, and repacking. Farms in Florida, South Carolina, Virginia, Maryland, California and Mexico are totaling tens of thousands of acres, allowing Lipman to grow and ship fresh produce 365 days a year. For more information, visit www.LipmanProduce.com.
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