Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Friday, March 13, 2009

Mushrooms - how well positioned?

I recently posed these questions by email to Bart Minor, president of the San Jose, Calif. based Mushroom Council:


How are retail promotions of mushrooms being impacted by the recession? Frequency/type of product promoted/etc?

We have findings that show mushroom sales were up 4.3% in 2008 (IRI Food Store Sales research), demonstrating that despite the current economy, consumer demand for fresh mushrooms remains strong. The data also revealed that fresh mushrooms were the fourth largest growth category in produce with positive sales– and the only vegetable to show positive growth in sales and volume. Furthermore, this data is in line with a recent survey that found consumers point to mushrooms as their third favorite vegetable, after tomatoes and broccoli (May 2008 Rose Research).

A recent study commissioned by the Mushroom Council (Encore Associates January 2009 Retail Best Practices study), revealed that incorporating a fundamental promotion strategy can strengthen mushrooms’ sales performance. In fact, during a recession like we are experiencing now, the frequency and type of mushroom promoted greatly impacts mushroom sales potential.


What’s the message to retailers about the value of promoting mushrooms?


The message to retailers is that mushrooms are a reliable value generator for the produce department and their stores. During a year when consumers are monitoring how they spend money, mushroom demand increased. In fact, Mushrooms were among 6 of 20 produce categories with a positive volume increase; They were a top 15 produce category in terms of dollars spent; Consumer spend rate on mushrooms was among the highest, trailing only potatoes and tomatoes; and aA shopping basket with mushrooms is more than double the value of a shopping basket without mushrooms.

What type of adjustments are growers/marketers making because of the recession?

Marketers can make adjustments to be proactive in this economy, starting with incorporating the best practices marketing strategy mentioned above to increase overall store sales.

As far as growers, specific adjustments may vary by the grower and specific economic conditions in that region.

PBH names supermarket role models

Sliding across the inbox this afternoon....


The Produce for Better Health Foundation (PBH) has named Food Lion, Safeway Inc., Schnuck Markets, and SUPERVALU Retail Role Models for their extraordinary support of the Fruits & Veggies-More Matters® national public health initiative in 2008. The companies will be formally recognized during the foundation's annual Board of Trustees meeting on April 3 in Monterey, Calif. The four retailers, representing over 5,600 stores, were selected from the more than 60 licensed PBH retail member companies because of their efforts to promote the Fruits & Veggies-More Matters brand in advertising, POS, packaging, promotions, websites, corporate wellness programs and community outreach activities. Out of over 60 retailers licensed to promote Fruits & Veggies-More Matters, these four have taken their promotion of the brand to unique and extraordinary levels. PBH wants to thank them by rewarding their efforts with an official designation of role model status. Look for consumer media outreach focused on these retailers this month as we celebrate the anniversary of Fruits & Veggies-More Matters. "We're extremely proud and appreciative of the efforts contributed by all of our retail donors to spread the word that increasing fruit and vegetable consumption is important," said Elizabeth Pivonka, Ph.D., R.D., president and CEO of PBH. "However, Food Lion, Safeway, Schnuck Markets, and SUPERVALU exhibited role model attributes by going above and beyond in their diverse support of the Fruits and Veggies-More Matters brand and PBH. We are especially grateful to these four companies for exhibiting a true commitment to Fruits & Veggies-More Matters, PBH and our mission." To achieve Role Model status, retailers must meet all of the following criteria:
provide regular, ongoing advertising and promotional support
provide in-store messaging via point-of-sale materials such as signs, bag rolls, stickers, and labels
create and promote a link to PBH's consumer website,
www.fruitsandveggiesmorematters.org, and integrate the Fruits & Veggies-More Matters message on the retailer's own website
carry the brand's message to additional media, such as an in-store magazine or newsletter, in-store radio, consumer handout or out-of-store broadcast
expand the Fruits & Veggies-More Matters logo beyond the produce department to highlight the message that all forms of fruits and vegetables count
integrate Fruits & Veggies-More Matters into retailer community outreach activities
enhance involvement with the foundation by serving on PBH committees Pivonka added that a few other PBH retailers were also very close to Role Model status, and that PBH is looking for their list of role models to grow each year. Retailers interested in learning more about becoming a Retail Role Model should
view PBH's retail role model criteria, or contact PBH Senior Executive of Retail Marketing Bryant Wynes via e-mail at bwynes@pbhfoundation.org. PBH is also looking for growers, shippers, and processors whose efforts and support of Fruits & Veggies-More Matters are exemplary. The foundation will identify and reference these role models in the ongoing public relations activities of Fruits & Veggies-More Matters. For more information, view our criteria for being a grower/shipper/processor role model or contact PBH Licensing & Partnership Manager Kathleen Ruf via e-mail at kruf@pbhfoundation.org.

Organic future - split verdict

The Fresh Talk poll drew from a wide range of opinions about the volume growth of organic produce in 2009. Here are the results of the poll that ended today:

How much will fresh produce organic sales grow in volume in 2009
Negative - volume will decline 8 (23%)
0 to 3% 9 (26%)
3% to 6% 6 (17%)
6% to 9% 6 (17%)
9% to 12% 5 (14%)

Votes so far: 34 Poll closed

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US Apple holdings - Februrary 1

From US Apple this afternoon....

March 1 holdings of fresh apples were at 62 million bushels, down 13 million bushels from February 1, according to the U.S. Apple Association (USApple) in a report released today. The fresh market holdings reflect a 30 percent increase over March 2008 holdings and 25 percent more than the five-year average. During the February to March period, movement of fresh apples was robust, exceeding prior year monthly movement by 11 percent and the five-year average fresh apple movement by 14 percent.

Processing apple holdings of 24 million bushels were 7 percent below year earlier levels and 11 percent below the five-year average for the March reporting period.

The U.S. Department of Agriculture (USDA) reported prices received by growers for fresh apples fell to 24.2 cents per pound, three cents below the five-year average for the February-March period. Retail prices for Red Delicious apples as reported by the Bureau of Labor Statistics rose from $1.18 per pound to $1.23 per pound in February.

“Driven by delicious taste, abundant variety and real health benefits, consumer demand for apples nationwide continues to be robust across all market segments,” stated Mark Seetin, USApple’s director, regulatory and industry affairs.

Details are included the March 2009 edition of USApple’s Market News. Please click here to access:
http://www.usapple.org/media/publications/marketnews/2009/march2009.pdf

Tomatoes of wrath and other news

Our good friend Jay Martini referred to this topic in a post called Harvest of Hypocrisy this week, and now I see another reference to PBS coverage of the supposed seemy underbelly of the  tomato industry in Florida. From the PBS Web site:
 
Think slavery is a thing of the past? Think again. The Coalition for Immokalee Workers (CIW), a group comprised of 4,000 low-wage, immigrant workers in southern Florida, says the practice still exists in the Sunshine State's tomato fields.Lucas Benitez of CIW told NOW that the group is pressing Governor Charles Crist to take aggressive action against the instances of virtual and actual slavery uncovered earlier this month by Gourmet Magazine.
TK: Let's hope the crescendo of media coverage on this issue at least strives for balance, and that association and industry leaders can present a credible and clear response to the sensational charges.
 
 
Other headlines this morning.....
 
 
 
An estimated 61 million Americans are affected by the department's nutrition programs. Recently, the recession has boosted demand for assistance. A record 31.8 million people received food stamps at the latest count and other programs are at or near record levels.Kelly Brownell, a professor at Yale University's Rudd Center for Food Policy and Obesity, said he did not believe there was sufficient evidence to show USDA's programs were leading to more obese Americans.

"I believe it comes up in the context of critics of these programs using this as an excuse for wanting to cut back," he said

 

According to civil rights experts, the investigation, one of the few times the government has ever conducted a civil rights investigation into a local police agency's immigration enforcement practices, could be a sign of things to come, as the Obama administration moves toward more comprehensive immigration reform. "It's hard to imagine this happening in the previous administration. In fact, it seemed to me that the Bush administration encouraged the Sheriff Arpaios of the nation to do what they're doing," says Kevin Johnson, dean of the University of California-Davis School of Law. "It is a signal the Obama administration is going to look a lot more carefully at the proper role for local government in immigration enforcement."

 
Kroger Co. said yesterday that its profits rose 8 percent in the fourth quarter as shoppers increasingly bypassed restaurants, going to the grocery more often and loading their carts with store brands at record rates. Its stock soared 10 percent. Net income rose to $349.2 million, or 53 cents per share, from $322.9 million, or 48 cents per share, the previous year. Total sales edged up to $17.26 billion from $17.23 billion, with gasoline revenues dropping with prices at store service stations. Excluding fuel, sales increased 4.4 percent. While Kroger executives voiced caution about the near-term economy, the nation's largest traditional grocery store chain is benefiting from recession
 
The bank estimates that up to three trillion dollars of public and private loans in developing countries must be repaid this year. Some nations have enough foreign currency reserves, but others will struggle to find new financing to pay their existing debts.  
 
This omnibus bill amended past language and clearly denoted that E-Verify should remain operational until September 30th. This was clearly the right move for Congress. But next time around, Congress should not wait until September 29, 2009 to decide whether or not to extend the program. Congress must work to re-authorize the program for longer periods of time. Re-authorizing E-Verify every couple of months only imbeds doubt in the American employers and causes unnecessary concern to those who are trying to do their due-diligence when hiring workers.
 
 

New Zealand company Compac has signed a multi-million dollar contract with one of Chile's largest growers' co-operatives to install a completely automated fruit sorting system.Based 120 kms north of Santiago, the Propal co-operative is currently Chile's largest avocado producer and second largest lemon producer.In 2007, Propal called for tenders to upgrade its existing four hectare plant in order into meet increased annual growth forecasts.Compac won the tender, presenting a solution that its management describe as arrived at through 'typical Kiwi ingenuity'.

 
 

The supermarket Wm Morrison said yesterday it would open small shops for the first time as the economic downturn gave it scope to speed up its expansion.Marc Bolland, chief executive, said the group had identified more than 100 locations for new stores and had halted a £1bn share buyback to "preserve its firepower". The recession has weighed heavily on commercial property values and Morrisons said it wanted "maximum financial flexibility" to go shopping for stores.

Mexican drug cartels buying public support LA Times

 

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