Jan. 5 - Congressional expectations and other top headliines

We've had enough negative news without Congress being in session, but the infighting, the disputed seats and posturing is just getting started. Here are some other top headlines snatched from the Web.

Locally produced v. organic Best of both worlds is organic and local, says this green author


Engines of recovery flame out Private sector forces of inventory rebuilding, household spending, home construction and payroll growth may be largely missing during 2009, with experts saying government spending will have to fuel recovery

Burris won't rule out court to keep disputed seat political drama for Democrats

FDA top job soon to be vacant Dr. von Eschenbach, a cancer surgeon, plans to return to Texas as of Jan. 20.

Mexicans with U.S. relatives targeted by kidnappers Prompts new exodus from Mexico as lawlessness increases

Fed officials say "pull out the stops" Big stimulus package endorsed

Oil shock shares blame for recession Housing downturn and oil both shoulder blame


Mandatory unit pricing for supermarkets in Australia Corner grocers exempt

Foreclosure crisis in Virginia

Wal-Mart workers in Canada organize

Acai berry juice fuels health craze

RFID revolution "a forced march"

Wal-Mart's RFID revolution has been a "forced march," says one source quoted in this Network World story. From the piece:

And in 2003, when Wal-Mart CIO Linda Dillman shocked the retail world by announcing that Wal-Mart was going to require all of its suppliers (beginning with the top 100) to tag pallets and cases of merchandise with RFID chips, the technology was immature and untested.

Today, 600 of Wal-Mart's 60,000 suppliers (plus 750 Sam's Club suppliers) have deployed RFID. On Wal-Mart's end, RFID has been rolled out at 1,000 of the roughly 4,000 Wal-Mart and Sam's Club stores in the United States.

Wal-Mart's original goal was to have 12 of its roughly 120 distribution centers outfitted for RFID by 2006. Today, only five are set up for RFID, as the company has shifted its RFID focus to in-store implementations.

TK: Still, WM is given credit for being on the bleeding edge of seeking ROI from RFID. And while the first generation chips were $1.25, the second generation chips are more like 7 to 10 cents each and read rates have jumped above 90%. So there is competitive advantage in RFID after all - maybe. Speaking of setting timelines, one wonders if the Produce Traceability Initiative will come out with a timeline that is suitably ambitious without being practically unrealistic.

Wal-Mart v. Fresh and Easy and other W-M news

Wal-Mart continues to attract coverage for its Marketside concept, and commentary why the stakes are high both in its attempt and the Fresh & Easy U.S. roll out. Here is a sampling:

Wal-Mart may try smaller store in county From Sign on San Diego:

Food industry analysts say Wal-Mart's Marketside concept is a response to rival Tesco's entry into the United States with its Fresh & Easy grocery stores. Last month, the British retailer opened its seventh store in San Diego County and announced plans for five more.

Bill Bishop, chairman of the firm Willard Bishop, which advises supermarkets, said Wal-Mart can't afford not to take Tesco on.

“In many people's minds, Tesco is the best retailer in the world, not the biggest but the best,” Bishop said. “They are in 14 different countries and have demonstrated that they play with a very hot hand – Wal-Mart would be asleep at the switch not to challenge them.”

Tesco's Fresh & Easy plans three more inland stores

From the Press Enterprise:

Even as British grocer Tesco's Fresh & Easy Neighborhood Market continues to add merchandise and open new stores -- including three Inland debuts in the next month -- a U.K.-based equity analyst says the fledgling chain remains far behind its initial sales and expansion projections.

The retailer so far has opened 82 stores in three states, and last week opened its 10th Inland market in Murrieta. Also last week, senior research analyst Mike J. Dennis of Piper Jaffray Ltd. issued the firm's second downbeat evaluation this year regarding the small-format concept's progress in the U.S.

Among his conclusions, Dennis said weekly unit sales per store on national-brand goods are as much as 50 times lower than its main supermarket competitors. Also, he said Fresh & Easy is likely to have 168 stores open by February 2009, falling short of its projected 203, possibly due in part to construction delays at its Stockton distribution and kitchen facilities.

Small box retailers From FT

For retailers, the attraction of smaller stores is better sales densities, up to two or three times higher than a typical superstore, as well as better gross margins. But the challenge with rapid turnover is to keep the shelves constantly restocked; customers have little tolerance of missing items. Meanwhile, rents are higher and there is a smaller top line to absorb overheads. It took Tesco five years to get the hang of running its smaller "Express" format in the UK.

That explains Wal-Mart's caution. The US's largest retailer has opened just 140 of its Neighbourhood Market stores - a quarter of the size of its typical 200,000 sq ft format - in a decade. That is a snail's pace for the expansionist group, which opened on average 240 new stores in each of the past five years. It is only now experimenting with a 15,000 sq ft convenience format. But, if food retailers are to keep pace with shifting consumer tastes, they must master the art of miniaturisation.

Wal-Mart keeping close eye on Tesco's U.S. stores : From Reuters

Wal-Mart has remained tight-lipped about its plans for Marketside. In June, Eduardo Castro-Wright, head of Wal-Mart's U.S. division, said the Marketside stores would feature a smaller assortment than a traditional grocery store and focus on fresh goods.

He said Wal-Mart shoppers might shop at the company's large supercenters once a month and go to its grocery-based Neighborhood Markets once a week, but would use Marketside for quick trips to buy perishables.

Tesco rivals testings smaller formats

TK: Wal-Mart's heart may not be with the smaller format - particularly with the potential growth for supercenters in California still significant - but Fresh & Easy will keep them working the model. May the better retailer win. Fresh & Easy said yesterday it is having no troubles filling its labor needs, with 14,000 applications received in August, or about 72 for every position available.

Wal-Mart seeks retailer support of GFSI

Luis of the Fresh Produce Industry Discussion Group posted this story that speaks of Wal-Mart's effort to seek retail support of the Global Food Safety Initiative. From that Supermarket News story:

In the wake of this year's high-profile food recalls, Wal- Mart Stores' Vice President of Food Safety Frank Yiannas called upon food retailers to join the retail giant and several other global retailers in embracing the Global Food Safety Initiative (GFSI), an effort to create and adopt uniform food safety standards. The hope is that more retailers and foodservice organizations are going to join us in this effort,” he said. “[GFSI] is our greatest opportunity to create a universal standard of safe food, and advance food safety and the quality of life for consumers around the world.”

TK: Questions remain how appropriate/adaptable the GFSI/SQF audit is for the produce growing community, particularly smaller operators. What is the GFSI? I found a powerpoint on the Web that covers the basics.

Wide world of produce - Sept. 2 headlines

Got a message from Gary Fleming about the time line for the Produce Industry Traceability Initiative..developing. Meanwhile, what's on the Web this morning related to produce?

Apple moth quarantine expands

Small farms chafe under big demands

USDA FAS: Mexico ag news

USDA FAS: India's almond imports

USDA FAS: US food safety Web site in China

USDA FAS: Canada Ag Biotech report

Outbreak ends, mystery remains

Landec Corp. conference call

Excess tomatoes

Keep children healthy with fruits, veggies

Wal-Mart rolls on

Recent salmonella outbreak shows benefits of irradiation

About gleaning

UK: more forecasts predict recession for next 18 months

Arizona called ground zero in immigration fight

NYT: End immigration incentives

Obesity society hails Republican platform

UK: Schools should lead obesity fight

UK: Aldi enjoys sales boom

Your wages are working harder

Growing produce to save cash

Wal-Mart delays Md. DCs

State food banks face staggering needs

Meijer, Marsh answer questions on local food

Hydroponics offers sustainability

Apple festival in NC

Marketside photos

Arizona based Fresh Produce Industry Discussion Group legend Luis has posted a couple of pictures of Wal-Mart's Marketside store on the discussion group - yet another reason for you to join the group. Here is what Luis says in a recent post:


Store is located on a side arterial street with fairly good traffic, close to relative new suburbs and positioned on a corner facing two convenient stores, one of which features a gas station. An intriguing feature of the store is the old drive-thru left over from the drug store which Walmart is likely to use as a take out. This is a feature not found on Fresh & Easies (that I know of). Talk about convenience, the American way. Developing..


Also, Luis linked to some coverage from FT on the concept. From that piece:

The design of Wal-Mart’s new small format Marketside stores, which will open in the Phoenix, Arizona area in coming weeks, marks a dramatic break with the branding of the rest of Wal-Mart’s more than 3,400 low-cost US stores.

Pictures of one of the first four new 15,000 sq ft stores, which Wal-Mart says are part of a pilot, have appeared on the website of the city of Mesa, southeast of Phoenix.

Later....

The first four stores have been built in former drugstore sites. Wal-Mart has indicated that the pilot will involve up to ten stores. It has acquired at least two other sites in the Phoenix area where it is planning to build new stores from scratch.

The new Wal-Mart stores will be competing directly with Tesco’s new Fresh & Easy small format stores. Tesco has opened 20 stores in the Phoenix area in less than a year, with another 16 sites announced so far.

TK: Luis wryly observes that Marketside is no "Jackalope" or ficticious creature after all:

All this activity focused on the big and the small, makes one wonder if the traditional supermarket footprint and assortment model is in danger of extinction. Perhaps an exaggeration but for some time, there has been evidence that it is under pressure while as noted on previous posts, the real state crunch and business failures may have freed small commercial retail space (i.e. strip malls etc), like urban swiss cheese in some places. It is going to be interesting to see what WalMart's experiment looks like.}

TK: Yes, it appears the traditional supermarket is under a tremendous amount of pressure, from dollar stores, Aldi, convenience marts, club stores, supercenters and now concepts like Fresh & Easy and Marketside. In any event, consumers are frequenting alliterative channels in increasing numbers and the fresh produce trade must adjust.

Consumer motivation - to have and have not

John Stanton of Philadelphia-based St. Joseph's University has been a speaker on the produce convention circuit for some time. The first time The Packer's library notes Stanton was in 1998, when Jody Shee covered Stanton giving remarks to the National Grocers Convention. At the time, Stanton predicted the rising influence of television chefs, among other food trends. Since then, Stanton's name pops up some 15 times, as he has been quoted in stories ranging from Wal-Mart ("Everyone has an Achilles heel, and, at some point, Wal-Mart will find something they can't overcome. If you asked me in 20 years if Wal-Mart will be in a dominant position, I would answer no. But I don't have the foggiest idea of why they won't," Mr. Stanton says. Global Produce, 2000) to warning marketers about leaning too heavily on a trendy health message for fruit and vegetable promotion, and the fickle ways of journalists. ( "What are they going to write about next year?" he asked. "They're not going to say, ‘Hey, you know what we told you last year about blueberries? Well, it's still true.'" The Packer, 2002)

At the Aug. 22 session of the U.S. Apple Association Marketing Conference, Stanton provided on the more livelier presentations at the show with the topic of consumer motivation. Stanton's presentation dealt with the changing dynamics of the American economy - particularly a widening gulf between the "haves" and the "have nots."

Stanton presented some thought provoking statistics that reveal that 48% of Americans polled in 2008 think the country is divided along economic lines, up from just 34% who felt that way in 1988.

What are the implications for produce marketers? "Have not" consumers will "trade down" on their choice for produce and shop price-oriented channels. What's more, Stanton boldly said the organic food movement has "jumped the shark" and is now waning. However, Stanton does buy in to the notion that the local food movement is here to stay.

All in all, Stanton tried to tailor the message to apple marketers . For example, what would "generic apples" look like as a price play? Can the industry sell more ugly apples like Europe does to achieve a better price point? How can the industry get more of a presence in dollar stores and convenience marts? A few misses in some of those speculations, perhaps, but Stanton's intelligent and thoughtful presentation braces the industry for an extended period of sober economic realities.

Amish paradise ?

I recently received an email from a source who said one of the big questions about the USDA's Good Agricultural Practices audit is this: Should the use of horse drawn wagons by the Amish in their fields during harvest prevent those growers from passing a USDA Good Agricultural Practices audit? Apparently, as of now, the USDA has determined that such a practice wouldn't stop the farm passing a GAP audit. We'll try to get some clarification from the agency next week when I get back to the office. The issue is relevant one, given the rising importance of local sourcing by larger buyers. Here is some recent coverage from the Associated Press about local/homegrown produce and how that meshes with demand from big time buyers. From the story:

At the wholesale produce market in this Mennonite community, farming families arrive by horse and buggy and pallets are stacked high with freshly harvested Shenandoah Valley onions, corn, green peppers and squash.

The setting evokes a simpler, pre-industrial era. In reality, small-scale farmers are experiencing growing pains as they adapt to the country's expanding diet for locally grown foods and the exacting demands of high-volume distributors of their produce.

Companies such as Sysco Corp., Whole Foods Market Inc. and Wal-Mart Stores Inc. want guaranteed volumes, set prices for an entire season and the ability to trace produce back to its source in the event of a food-related health scare, among other things.

However, such standards, and other formal trappings of the business world — contracts, attorneys, technology — often conflict with the ethics, and practical considerations, of small-scale farmers, especially those who are deeply religious.

"They feel they are producing something as safe and secure as their relationship with the Lord," said David Watson of the Association of Family Farms.

Moreover, growers in temperate climates don't have a 12-month supply of produce. "Trying to match what the buyers need with what's being planted" is one of the biggest challenges, said Richard Rohrer, a Mennonite farmer and manager of the Shenandoah Valley Produce Auction.

When one large buyer recently demanded insurance — which is needed in case a fruit or vegetable makes someone ill — the Dayton farmers balked.

"We deal more on the handshake, personal commitment — look the grower in the eye," said farmer Vernon Hoover, the Dayton auction's independent buyer.

Still, Amish and Mennonite and even non-religious small-scale growers in Virginia, Pennsylvania, Ohio, Iowa, Tennessee, New York and other states are mindful of the money to be made from this emerging relationship with big distributors. And they are willing to engage in some horse trading to create business relationships.

For example, they want industry demands such as specialty boxes and company labels to be factored into their price, according to Rich Pirog, associate director of the Leopold Center for Sustainable Agriculture at Iowa State University. And while wholesale markets, or auctions, benefit the food industry by bringing together larger numbers of growers in one location, they also make it easier for smaller growers to make connections to representatives of big companies and their resources, including refrigerated trucks and bar-code labels.

"If you have a quality product, consistently packaged, don't top dress by taking the worst and putting it on the bottom — all that is the way you build your name here at the auction," Charlie Martin, the Dayton auction's board chairman, said. He proudly stood before a large stack of unblemished yellow and green squash that his 16-year-old daughter picked that morning, wearing surgical gloves to avoid marring their flesh.

The demand for what small-scale farmers have to offer is burgeoning.

_ Wal-Mart last month said it would sell $400 million worth of locally grown produce this year, making it the largest player in that market. Its suppliers include "many Amish and Mennonite growers" who work through third party suppliers, spokeswoman Deisha Galberth said.

Tuesday headline roundup - Top headlines

Here are a few headlines of note for Aug. 12...

Junk bond defaults rise as economy slows From Investors Business Daily:

U.S. corporate bond defaults are already on the rise. Moody's on Aug. 7 reported a sharp rise in July defaults and now expects the global default rate to climb over 6% over the next year. That's up from less than 1% in late 2007.
Standard & Poor's predicts that 4.9% of all speculative grade borrowers will default over the next 12 months. And there is a chance — estimated at 20% — that things could get much worse, with over 8% defaulting. Default, of course, sets the stage for bankruptcy court. "Default typically precedes Chapter 11," said Diane Vazza, head of global fixed income at Standard & Poor's.

Critics blast Wal-Mart for lobbying against carbon offset guidelines From U.S. News

Wal-Mart is one of the largest consumers of electricity in the United States and presides over one of the largest truck fleets in the world. And for these reasons, even the little steps the company takes to go greener—such as selling sustainable products or local produce—make a big difference, and the company has been commended for them.
Despite this, critics from Wal-Mart Watch, a group that tracks the company's growth and influence, re
port that the company is lobbying against defining and standardizing carbon offsets for proposed cap-and-trade programs—a move some deem hypocritical in light of the company's public campaign to cut its footprint.


U.S. may not be in recession, but 170 metro areas could be From The Modesto Bee;


Using June data, Moody's estimates that 170 metro areas are in recession. Together they make up about 43 percent of metropolitan employment nationwide. That's up from 142 metropolitan areas in May.
Moody's research suggests that 116 metro areas are at risk of recession, about 25 percent of metropolitan employment nationwide. That leaves roughly 32 percent of the nation's biggest metro areas, 94 of them, with expanding economies. In May, 106 metropolitan communities were expanding.
The biggest losers include industrial Midwestern states such as Ohio, Michigan, Indiana and Wisconsin. Deep problems in auto manufacturing, exacerbated by bad bets on SUV production as gasoline prices rose, have hurt those states. The housing crunch has made a bad situation worse.
"Michigan is either the weakest or second weakest economy, mostly due to the misfortunes of the auto industry," said Mark Vitner, senior economist for Wachovia, the big national bank based in Charlotte, N.C. "Aside from Michigan, the rest of the Midwest is generally struggling with weakness in the auto sector and other consumer durable goods."
Other obvious losers include Florida, Nevada and Arizona, states that are experiencing the biggest collapse in home prices after the biggest run-up in prices during the boom of 2001 to 2005. Their turnarounds will depend largely on when the housing freefall bottoms out.

GOP hits Dems on access to power

Obesity may be contagious

Nebraska group aims for immigration policy

Wal-Mart, retailers may gain on reports

Locally schmocally

The local food movement continues to get a ton of press this summer. This isn't surprising because the runup in fuel prices set up local vegetable and fruit deals to have greater demand this season. The emergence of "local produce" at supermarkets brings to mind a couple of questions, however.

How do consumers trained to look for local food react when "local produce" is no longer available? Do they cut back on their purchases of produce?
How does the halo effect of pristine food safety in local produce impact the sales of not-so-local fresh produce from other regions?
When most supermarkets have local produce to offer, what is the next competitive advantage that can be wrought from the locavore movement? Or does the mere fact that "local produce" is so widely available eventually reduce its appeal?
Is the food safety "double standard" (the heavier hand of regulation on larger firms compared with local food producers) a potential threat to consumer perceptions of local food?

Here is some recent coverage of local foods:

Wal Mart local produce Web site

Locavores promote locally grown fruits and vegetables

Local food: better for the conscience but not the wallet

Area colleges aim to provide local food

Why the hype about local food may be more than just a trend

Salmonella headline roundup - Wal-Mart gets sued

Why not a salmonella headline roundup? Let's have another go with Google and see what is being written about this never-ending story....

Jalapenos at Valley Bashas' test positive for salmonella

Bill Marler finds someone to sue in salmonella outbreak From the story:

This morning, Marler, joined by David Woodruff, a Colorado attorney, made his first move, filing a lawsuit against Wal-Mart and a John Doe jalapeño supplier on behalf of Brian Grubbs, a resident of Dolores, Colorado. The salmonella suit, which makes claims for, among other things, strict product liability, negligence and negligence per se, was filed in Colorado’s aptly-named Montezuma County court.

First salmonella lawsuit filed From the story:

"Mr. Grubbs became sick after eating jalapenos purchased from Wal-Mart," says Marler, "and it was the only thing he ate different from his wife." Fortunately, Mrs. Grubbs had the wherewithal to contact the local health department and insisted on getting the peppers tested. "She really pestered them to get the test done and now it has become a crucial piece of evidence," says Marler.

Marler explains that health departments are inundated with requests to test food and most of the time those requests are unfounded, mainly because people think the food that sickened them was the last food they ate. In this case, Marler says they got lucky: The Grubbs family still had some of the jalapenos that sickened Mr. Grubbs.


TK: Mr. Grubbs and the "smoking gun" pepper. One would assume Wal-Mart will fight this lawsuit with vigor. Here is a somewhat dated Marler Clark powerpoint...

Jalapeno: testing positive

A pepper reportedly purchased at Wal-Mart by a consumer sickened by Salmonella Saintpaul has tested positive for the same DNA pattern as the Salmonella Saintpaul pathogen involved in the multi state outbreak. Doug Powell of the Food Safety Network passes on this link from a newspaper in La Junta, Colo. with the story.
Meanwhile, here is the link to the Colorado Department of Public Health, and excerpts from that news release, which has been the foundation for most media reports:


DENVER - The Laboratory Services Division of the Colorado Department of Public Health and Environment has confirmed that a jalapeno pepper provided by an ill individual from Montezuma County has tested positive with the same DNA pattern of Salmonella Saintpaul-the strain that has caused a large, multistate outbreak of salmonella.
The pepper was purchased at a local Wal-Mart, likely on June 24, and the individual became ill on July 4. This is the first pepper linked directly to an ill person in this outbreak.
The state health department is working with the U.S. Food and Drug Administration (FDA) to determine the origin of the pepper.
On Friday, the FDA advised consumers that all fresh jalapeno and serrano peppers grown in the United States are not associated with the Salmonella Saintpaul outbreak. However, jalapeno and serrano peppers grown outside of the United States should be eaten only if they have been processed or canned. They should not be eaten raw.
This advisory was based on evidence gathered during a multiweek, intensive investigation conducted by the U.S. Centers for Disease Control and Prevention (CDC) in partnership with the FDA and several states to find the source of the contamination that led to the outbreak.
State health officials advised consumers who are going to purchase jalapeno or serrano peppers to first ask their grocer’s manager where their peppers were grown.
The CDC reports that since April 1,304 people have been infected with a strain of Salmonella Saintpaul having the same genetic fingerprint. Cases have been identified in 43 states, the District of Columbia and Canada, with 16 confirmed cases reported in Colorado-Adams (2); Denver (2); Douglas (1); El Paso (3); Montezuma (2); Otero (2); Pueblo (3); Weld (1).
Salmonella causes diarrhea, oftentimes bloody, and is accompanied by stomach cramps and fever. Symptoms typically begin within one to four days after exposure to the bacteria. Although most people recover without treatment, severe infections may occur. In infants, people with poor underlying health and those with weakened immune systems, Salmonella can invade the bloodstream and cause life-threatening infections.
Consumers are advised to follow the general food safety guidelines below:
Refrigerate within two hours or discard cut, peeled or cooked produce.
Avoid purchasing bruised or damaged produce.
Discard any produce that appears spoiled.
Thoroughly wash all produce under running water.
Keep produce that will be consumed raw separate from raw meats, raw seafood and raw produce items.
Wash cutting boards, dishes, utensils and counter tops with hot water and soap when switching between types of food products.
Consumers are reminded that vegetables are an important part of a healthy diet and that cooking vegetables kills bacteria, including Salmonella.
FDA information on this investigation can be found at http://www.fda.gov/oc/opacom/hottopics/tomatoes.html.

Wal Mart and Aldi

I was out and about today and took some digital pictures of produce at Aldi and Wal-Mart. Gives you a sense the value those markets offer the cash-strapped consumer. No jalapenos to be found however.

Killer links - they are all here

I have to say putting links on this site is more of an art than a science. I sometimes change for the sake of change, as you know. The latest tinkering is evident at the bottom of the blog, where I added a weather map with updated temps listed numerically right on the map. Too many weather maps? You have a point....

I welcome any input from you all on what links you use and which you have no use for. Lately, I feel like the Wal Mart blog and the Fresh and Easy blog have been kind of stale, so they may be on the chopping block.

Here are my top 5 information rich links from the blog, excluding RSS feeds of other blogs.
1. Triple A Fuel Cost Calculator Nifty trip planning tool
2. FAO Trade Flow Map - Import and export flows
3. Association/foundation finder - Provides IRS 990 forms for U.S. nonprofits
4. U.S. Regulations portal - Type in a search word and see where this site takes you
5. EDGAR SEC Company Search - Searchable database of Securities and Exchange Commission filings

In the unlikely event that I'm missing any "killer' links, please leave a comment and I'll check out your suggestion.

Fruits & Veggies More Matters - Topping 1,000

I think the Produce for Better Health Foundation's Fruits & Veggies More Matters campaign is a remarkable PR generating machine. It seems that not a day goes by that I don't see a story - captured by Google news alerts scanning for f/v news - about the benefits of eating a colorful variety of fruits and vegetables or some other facet of the More Matters campaign. Kudos to the staff at PBH whose work is sometimes taken for granted by produce traders distracted by less happy news.

This morning I saw another example of the steady drumbeat of coverage PBH generates, published on Market Watch online. A sampling:


WILMINGTON, Del., July 14, 2008 /PRNewswire via COMTEX/ -- Logo Helps Moms Make Healthy, Informed Purchases
WILMINGTON, Del., July 14 /PRNewswire-USNewswire/ -- Moms shopping for healthy options can now find the Fruits & Veggies--More Matters(R) logo on over 1,000 different food labels in stores nationwide. To carry the Fruits & Veggies--More Matters logo, food products must meet strict nutrition guidelines for total fat, saturated fat, trans-fat, added sugar, fiber, and sodium content. Consumers can look for the logo when shopping as a designation that a product is nutritious and to remind them to eat more fruits and vegetables for better health. Healthful habits, like eating fruits and vegetables, may help lower the risk of obesity and other related diseases such as diabetes and hypertension.
Retailers, growers, packers and manufacturers across the country support the importance of fruit and vegetable consumption by including the Fruits & Veggies--More Matters logo prominently on both nationally marketed, brand name products, like those from Green Giant, Sunkist, Welch's, and others, as well as on the private label products of several grocery chains. A&P is the latest grocery retailer to have some of their private label frozen and canned fruits and vegetables approved to include the Fruits & Veggies--More Matters logo on their packaging. Other retailers featuring the logo on a number of select items from their private label line include: Bi-Lo, Kroger, Meijer, Publix, Safeway, Schnuck's, SuperValu, Ukrop's, Wal-Mart, and Weis.
"When you see the Fruits & Veggies--More Matters logo on a package of frozen, canned, 100 percent juice, dried, or fresh-cut fruit or vegetables, you know we've already done the label reading for you. It makes purchasing decisions easier," said Elizabeth Pivonka, Ph.D., R.D., president and CEO of PBH, the nonprofit entity who, together with the Centers for Disease Control and Prevention (CDC), is behind the Fruits & Veggies--More Matters health initiative.

Salmonella impact - June retail tomato sales

Developing...David Mitchell of The Packer to develop this story... figures below from The Perishables Group...

For the four weeks ending June 28, 2008, total tomato volume was down 17 percent from the same period a year ago, while dollar sales were down 5.4 percent to $136.3 million.

Raw red plum, red Roma and round red suffered the most, decreasing an average of 46.1 percent in volume and 36.2 percent in dollar sales; while other tomatoes increased 3.4 percent and 8 percent in volume and dollars, respectively.

Perishables Group Produce Data Facts:

ü The data represents retail census sales data of the total U.S. grocery store chains having more than $2 million sales annually.

ü Data represents approximately 62 percent ACV* and 15,000 stores nationwide.

ü Not included in the data sets: Wal-Mart, club stores, small independent chains and alternative format retailers such as Whole Foods and Wild Oats.

ü The data represents items sold from the produce department including UPC, PLU and system 2 coded items.

ü The tomato category volume is reported in pounds.

Organic pullback?

Does trouble at Starbucks signal trouble for sales of organic produce? That seems like a stretch, but that is one observation in a story about signs of decreased demand for discretionary products like organic fruits and vegetables. Consumers who "dabble" in organic produce may be the most prone to wander back to conventional fruits and vegetables.

You might note the headlines I've linked to at the bottom of the blog each day or so. After they are posted here, I post them to an archive page at the Fresh Produce Industry Discussion Group.

Today, I noted one headline that carries some unsettling reports for organic marketers. From the Austin (home of Whole Foods) American Statesman, Organic retailers sees signs of a consumer pullback by Lilly Rockwell with a publish date of July 8.

Despite contrary views from organic retailers, Rockwell cites these factors in the organic consumer pullback:

But industry analysts say they're seeing signs that shoppers have shifted into "recession mode." The signs include strong sales growth at Wal-Mart Stores and discount clubs such as Costco and rising sales of store brand products, which are less expensive than national brands. Some say the recent troubles at Starbucks, which said last week it will close 600 stores, are a signal that consumers are pulling back on discretionary purchases.

On the dabbler....

But shoppers who had been dabbling in the pesticide-free lifestyle might cut back on their organic and natural purchases.
"They are more likely to pull back short-term as prices rise," Shea said. "They are not the committed organic consumer."
The growth of organic products has slowed from where it was two or three years ago, Shea said. Whole Foods' same-store sales growth rate has slowed down in the past two years.
But that is likely a short-term trend, Shea said, predicting that by next year, sales growth at Whole Foods will be more robust as the economy eases out of its deep slump.

On the idea that organic produce is rising in price at a slower rate than conventional....
"This notion of closing the gap between the price of organic items and conventional items is disputed within the industry.
Some experts, such as Shea, say they don't think the price of organics are rising at a slower pace. Others say organic prices are more steady than that of other foods in part because organic growers use natural fertilizers, instead of more expensive synthetics.


On the growth rate for Whole Foods....
Whole Foods Market:Same-store sales grew 6.7 percent in the first quarter, just over half the rate of a year ago.

TK: The challenge for organic retailers is to move the occasional shopper to the "committed" category in a time of economic weakness. It will be an uphill climb. Here is a Web link about measuring and communicating benefits of organic agriculture to consumers. The study notes, that for the most part, organic consumption is more about "me" and less about altruistic notions. From the European report:

An important aspect of communication with consumers is the concept of "credence characteristics" (6). The fact that a product is organic is not immediately apparent to the consumer. There is no way for the consumer to directly check whether a product has been produced organically or not. With the exception of direct sales from farmer to consumer, a well-functioning certification and labeling system is an important pre-requisite for successful communication with the consumer. It has to be made credible for the consumer that the product is actually organic, and organic products have to be easily distinguished from non-organic products.
Environmental advantages of organic food can also be regarded as a credence characteristic. Even if the consumer is sure that the product he or she is buying is organic, he or she must also believe that, during production, environmental advantages have been realized.
But are consumers really interested in the attribute "environmentally friendliness" of organic food? A review of the literature (15,17,19,20) shows that environmental friendliness of the production process of organic food is generally only the second most important argument for purchase. Magnusson et al. (15) found "health concern is a better predictor than concern for the environment" and interpret this as an indication "that egoistic motives seem to be stronger than altruistic motives." Wier et al. (19) conclude that consumers generally acknowledge non-use benefits of organic products, "but only those having use values in addition actually purchase organic to a high degree."
Two conclusions emerge from this: First, attempts to sell organic products to consumers based only on reference to their non-use values are likely to fail. On the other hand, evidence from the literature suggests that communication about the non-use values as a secondary aspect can have positive effects on sales.
This understanding of the organic farming market can, for instance, be found in the slogan used by the most successful German organic supermarket chain ALNATURA: "Organic — makes sense for man and earth." Another example of practical implementation is the information campaign on organic farming by the Federal Ministry of Consumer Protection, Food and Agriculture in Germany, which stresses the advantages of organic food for the individual and puts the societal advantages second (8).

Leaving Kansas City and other Wal-Mart news

Wal-Mart is pulling its managers' meeting out of Kansas City in favor of Orlando. The next thing you know, KC will lose its NBA franchise...Oh yeah, we don't have an NBA (or NHL) franchise. Another indignity to bear.


Wal-Mart moves meeting from KC to Orlando

Wal-Mart to offer more South Carolina produce

After being overhyped, RFID starts to deliver (WSJ preview)

Why Wal-Mart may be good for small business

August hearing set for former Wal-Mart executive


Halffords poaches Wal-Mart man David Wild, who had been charged with seeing off Tesco as head of Wal-Mart’s new format team in northern California, is quitting the retailer to take the top job at Halfords. A former Tesco executive, he will take up the post at the car maintenance and bicycles chain in early August.


Wal-Mart sourcing produce from local farmers (Arkansas) Wal-Mart is working with farmers to incorporate more local sourcing into its produce assortment, Jack Sinclair, executive vice president for grocery merchandise, said Thursday.
Sinclair pointed to a selection of Healthy Harvest Blueberries sourced from Interstate Express Logistics, a Fayetteville-based company, during a media tour of Wal-Mart's Pleasant Grove store in Rogers.
"Local sourcing will be a new focus for us," Sinclair said.

Ultimate anecdotal

Just how big is the "backyard garden" trend going to be this summer? We may never know, but news editors at newspapers across the country are assigning stories to their reporters that tend to confirm and reinforce the trend. I have my doubts how much volume backyard gardens will account for this year, though it is true we may be on the leading edge of a movement that sees more people attempt to garden. We see recurring stories on the Web about victory gardens, but most of these stories interview one or two backyard gardeners and don't really flesh out the extent of the purported increase in vegetable gardens. From The Berkshire Record in Massachusetts, this is a typical approach:

The price of gas is not the only rising cost that is altering Americans’ summer plans. The soaring cost of fruits and vegetables at supermarkets across the nation is prompting people to, quite literally, rely on the “fruits of their labor” for their fresh produce. New Marlborough resident Nory Loeung is one of those creating her own vegetable garden this year.

TK: More sophistication in backyard growing is noted by advocates of greenhouse gardening:

Greenhouse gardening is a terrific way to provide fresh fruits and vegetables for your family at a fraction of the cost of purchasing those same items from a commercial retailer, like Wal Mart. Growing your own fruits and vegetables in the greenhouse also allows you to grow organically and to control what, if any, pesticides are used in growing your family’s fruits and vegetables. Greenhouse gardening produces fruits and vegetables all year-round, providing fresh, balanced nutrition for the whole family.


TK: Another theme is that backyard gardens are increasing in response to food safety concerns. This news release from Penn State follows that thinking but issues a reminder:

The recent tomato contamination outbreak has many people thinking about growing their own garden-fresh fruits and vegetables. But a food-safety specialist in Penn State's College of Agricultural Sciences says it's not where the produce is grown, but how it's grown, so amateur cultivators should know a few important tips about home-garden food safety.

Since many of the bacteria and parasites that make people sick are transmitted through animal and human waste, it's important to protect the garden from wild animals and household pets, said Luke LaBorde, associate professor of food science. While people are sharing their harvest with them, they could be sharing potential illnesses via saliva and droppings.

"It's just common sense," LaBorde said. "We don’t want droppings to contact the produce, particularly if we're going to be eating it raw -- which we often are.

"Treat your garden like something you want to eat," he added. "You don’t want birds and animals snooping around your food. Deer are cute, and they'll be attracted to your lettuce and green peppers. But they'll leave something behind, so try to divert them to another area.

TK: Until we see statistics that put backyard gardening in a measurable context, I think the trend is being over-reported in relation to its importance. Few people can commit the time and energy to grow their own vegetable gardens, but the trend merits watching for commercial produce marketers.

The news that would have been the news

Ever wonder what happens to the news that would have been the news if not for tomatoes and salmonella? We may have to keep asking that question, since the news cycle on tomatoes and salmonella is not over just yet.

Still, I have about 83 unopened email Google alerts in my Gmail account, and a lot them contain topics relating to the produce industry: a new study about snack choices for young children, "green therapy" (a study about the benefits of fruits and vegetables on the heart and blood vessels), the latest developments in sustainability, the nonstop flow of stories about Wal-Mart, Kroger, etc.

A lot of these topics are being covered in the pages of The Packer, but I haven't had time to comment on them or note them in TK headline picks. I'll work on getting caught up in that respect.

Look for some new audio files in my TK audio files link this week, including an FDA teleconference on the tomatoes/salmonella issue.

I'm headed off to Minneapolis Monday for the FMI Sustainability Summit, so look for a few posts from that site on Monday and Tuesday.

We added three new members of the Fresh Produce Industry Discussion Group today, and it continues to be a place where there is something fresh every day to look at.