Pundit Interviews

Pundit Letters





Perishable Pundit
P.O. Box 810425
Boca Raton FL 33481

Ph: 561-994-1118
Fax: 561-994-1610


email:
info@PerishablePundit.com

a

Produce Business

Deli Business

American Food & Ag Exporter

Cheese Connoisseur



PMA Convenes First Country Council

Winston Churchill wrote a four-volume series entitled, A History of the English Speaking Peoples, which chronicled the historical journey and unique bonds that connected the peoples of the United Kingdom, Canada, New Zealand, Australia and the United States.

Alas, Churchill only told the story through to the end of the 19th century. So it falls to this lowly Pundit to tell you that a new volume must be added to this work:

PMA forms Australia-New Zealand Country Council

Newark, Del. — In a major step for the fresh produce industry, the Produce Marketing Association (PMA) has established an Australia-New Zealand Country Council with member representatives from both countries.

Alicia Calhoun, PMA presents Michael Simonetta, Perfection Fresh Australia with a token as he assumes the Chairmanship of the PMA Australia — New Zealand Country Council

Speaking at the first Council meeting in Sydney on May 21, Alicia Calhoun, director, industry technology & standards said PMA aimed to ensure its products, services and events are relevant to current and potential members in both countries.

“With almost 80 members in Australia and 20 in New Zealand, the Council will play an important role in recommending to PMA how to provide the best value and service to those members and potential members. Council members will help PMA establish long- and short-term goals and will participate in product and event development for both countries,” Alicia Calhoun said.

The foundation members of the PMA Australia-New Zealand Country Council represent the entire supply chain of the industry, including growers, exporters, importers, wholesalers, and retailers.

Serving under the chairmanship of Michael Simonetta, chief executive officer, Perfection Fresh Australia, the Australia-New Zealand Country Council members are:

Australia

Michael Batycki, Woolworths Supermarkets
Fabian Carniel, Mulgowie Freshex, Pty. Ltd.
David Harris, Harris Farm Markets Moraitis Group
Mike Nichol, Flavorite Hydroponic Tomatoes, Pty. Ltd.
Rob Robson, OneHarvest
Craig Spencer, Carter & Spencer Group
Michael Worthington, Timbercorp, Ltd.
Andrew Young, Brismark

New Zealand

Ingrid Hofma, Le Fresh International (NZ), Ltd.
David Smith, Freshmax Holdings, Ltd.
Kevin Wilcox, AS Wilcox & Sons, Ltd.


Top row: Andrew Young, Brismark; David Smith, Freshmax Holdings Ltd.; Kevin Wilcox, AS Wilcox & Sons Ltd.; Craig Spencer, Carter & Spencer Group; Michael Worthington, Timbercorp Ltd.; Paul Moratis, Moraitis Group; Michael Batycki, Woolworths Supermarkets; Michael Simonetta, Perfection Fresh Australia; Fabian Carniel, Mulgowie Freshex Pty Ltd.

Bottom Row: David Harris, Harris Farm Markets; Rob Robson, OneHarvest; Alicia Calhoun, PMA; Nancy Tucker, PMA; Ingrid Hoffma, LeFresh International (NZ) Ltd.

Also, for the first time, the Produce Marketing Association conducted member meetings in Sydney, Brisbane, and Melbourne, Australia in May.

“Our meetings were designed to provide members in Australia with convenient access to information that is tailored to their needs and local conditions. With the strong interest and attendance we received, we are definitely planning additional activities in Australia, including an annual conference and more member meetings,” said Nancy Tucker, PMA vice president of global business development.

“Many Australian fresh produce businesses continue to utilize our annual PMA Fresh Summit International Convention & Exposition as a key source of information and ideas. We anticipate the high level of attendance from Australia will continue at this year’s event to be held in Houston, October 12 — 15,” said Tucker.

This is really a wonderful moment. Across the boundaries of the broad Pacific representatives of the industry from three nations — Australia, New Zealand and the United States — join together as much to advance intellectually as to trade.

The enormous resources of PMA, the world’s largest produce-specific organization, now has a formal path of interaction with a roster of members with unique experiences that can enrich us all.

We have been paying much attention to things going on in Australia and New Zealand. When Rob Robson of OneHarvest was named to the PMA Executive Committee, the first person from outside North America to obtain such a position, we asked Is It Possible To Have A PMA Chairman From Outside The US? Then we reported on the positive feedback we received in our piece Pundit’s Mailbag — In Support Of Rob Robson. We offered a profile of a Canadian who has obtained an important position in New Zealand in Pundit’s Pulse Of The Industry: Enza’s Dawn Gray then we wrote up Pundit’s Pulse Of The Industry — OneHarvest’s Rob Robson And His Food Safety Team which was followed up by Pundit’s Mailbag — More Insights On OneHarvest’s Leaders.

It is important to cross-fertilize, and getting ideas flowing back and forth across the Pacific is the beginning of greater wisdom for all of us. This is the achievement of a dream for Nancy Tucker, PMA’s Vice President For Global Business Development, who is giving presentations all over Australia now but was just the other day in Chile.

It is doubtful it would have happened without PMA’s President, Bryan Silbermann. The fact that he is an immigrant doubtless reminds him of what we native-born Americans often forget: Most of the world’s population doesn’t live in the U.S.A.

John Baker, who is the “on the ground” representative for PMA in Australia, was also instrumental in seeing this happen.

We hope it is just the beginning. Once value is established, as we wrote after the PMA convention last year, we would like to see even more formal links:

It was interesting that at the recent PMA convention in San Diego, the largest single contingent from outside North America was Australia. Considering the Australian population of only 20 million, this is wildly disproportionate. And considering the very, very small scale of produce trade between the two countries, it is astonishing.

What it tells me is that Australians, almost uniquely, interchange with our industry in the U.S. for their own education and not, particularly, to capitalize on trade opportunities. This involvement so motivates people that at the Australian/New Zealand reception at PMA, there must have been well over a million dollars in airfare alone represented.

One wonders if PMA shouldn’t look at setting up an Australia/New Zealand Chapter. This might be an opportunity to use the two-tier funding mechanism the Pundit suggested in our discussion about the prospect of PMA/United merger talks. Basically PMA would collect membership dues and rebate, say, half, to the Australia/New Zealand Chapter of the Produce Marketing Association. This would hook the produce industry down under into all the information and activity of PMA, while giving them funds and structure to maintain a strong local association that can run activities and programs while drawing on PMA expertise and resources.

Of course there are challenges to all this international cooperation. As we wrote in the same article:

Without a doubt, an international perspective adds a great deal to the PMA Board. A growth in international membership, however, may run head on into PMA’s moves to enhance its role in government relations. Yes, there are trade relations issues that would certainly apply to both sides, but almost by definition, government relations is a domestic matter. This is a conundrum for the future.

Certainly this has to be thought of as we consider the future shape of our association structure in the U.S.

However we resolve this, one thing is certain: we must not turn our backs on international engagement. There are many challenges ahead, and our combined strength and wisdom will be needed to overcome those challenges. As Churchill told us in the face of the challenges of his age:

"If we are together, nothing is impossible. If we are divided, all will fail. I therefore preach continually the doctrine of the fraternal association of our two peoples, not for any purpose of … territorial aggrandizement … but for the sake of service to mankind."

So, in this union, we may not clean up on trade between our nations but we can surely get rich in knowledge and international comity, and these are prizes that have a price beyond measure.




Colin Powell To Speak At PMA Convention

This year PMA is changing the schedule of its annual trade show and convention, Fresh Summit which will be held in Houston, TX October 12-15, 2007. The new schedule goes like this:

Schedule

2007 Schedule of Events

Friday, October 12

7:30 am — 12:30 pm Retail Produce Tour *
1:00 pm — 2:30 pm Lunch General Session
2:45 pm — 4:00 pm Workshop Series I
2:45 pm — 4:45 pm Floral Solutions Workshop
5:00 pm — 6:00 pm President’s Invitational Reception (Invitation Only)
6:00 pm — 8:00 pm Welcoming Reception *

Saturday, October 13

7:30 a.m. — 9:20 a.m. Breakfast General Session
9:35 a.m. — 10:50 a.m. Workshop Series II
11:00 a.m. — 5:30 p.m. Exposition
5:30 p.m. — 7:00 p.m. Floral Networking Reception *

Sunday, October 14

7:30 a.m. — 9:00 a.m. Breakfast General Session
9:15 a.m. — 10:45 a.m. Workshop Series III
11:00 a.m. — 5:00 p.m. Exposition
5:30 p.m. — 7:30 p.m. International Partners Reception *

Monday, October 15

8:15 a.m. — 9:45 a.m. Breakfast General Session
10:00 a.m. — 2:00 p.m. Exposition

* May require separate registration.

The switch to a Saturday, Sunday, Monday show from the longtime Sunday, Monday and Tuesday show was driven by attendee and exhibitor input that they preferred to have more of the event over the weekend.

The switch in schedule means the opening party will be Friday night and the first General Session will be a Friday luncheon at 1:00pm.

To make sure everyone has plenty of motivation to get there on time, PMA has retained a headline caliber speaker:

HONORABLE COLIN POWELL
IS FEATURED SPEAKER
AT PMA’S FRESH SUMMIT

Newark, Del. — The Produce Marketing Association (PMA) announces General Colin L. Powell, USA (Ret.) will be the general session speaker Friday, October 12 from 1:00 — 2:30 p.m. during the 2007 Fresh Summit International Convention & Exposition. The convention will be held October 12-15, 2007 in Houston, Texas, USA.

“We are both honored and excited that The Honorable Colin L. Powell has accepted our invitation. We are eagerly anticipating learning his view of leadership and how we can apply his insights to our own lives and businesses,” said PMA president Bryan Silbermann.

The Honorable Colin L. Powell, military leader, political icon, speaker, and author of his best-selling autobiography My American Journey, will draw from his own experiences and those he obtained as an eyewitness to leadership to convey what he believes are the necessary elements for leadership success. He will speak about effective strategies to gain control of change and crises and the notion that being a leader is far more than a bestowed title.

During his tenure as a leader on the world stage, General Colin L. Powell, USA (Ret.) served 35 years in the United States Army and was also the first African-American chairman of the Joint Chief of Staff before being named U.S. Secretary of State by President George W. Bush.

You can learn more about Colin Powell and other PMA speakers here. You can register right here.




Pundit’s Pulse Of The Industry — Information Resources’ Thom Blischok

Our piece, Pundit’s Pulse Of the Industry — Willard Bishop Consulting’s Bill Bishop included this quote from Bill Bishop:

“…for some period of time AC Nielsen was out in front by itself in category management including perishables. Now, there is a strong initiative on the part of IRI to win a piece of that business.”

We wanted to learn more about IRI’s interest in this field and thoughts on category management and retailing, so we asked Pundit Investigator and Special Projects Editor Mira Slott to speak with Thom Blischok, President, Retail Solutions North America & Strategic Consulting, Information Resources, Inc. (IRI), to find out more:

Thom Blischok
President, Retail Solutions
North America & Strategic Consulting
Information Resources, Inc. (IRI)

Q: Has there been a turning point in category management strategy and direction? Is retail competition fueling the science?

A: For background, it’s fair to say for probably the past 50 years, retailers and grocers have used various forms of technology heavily focused on the center-store to analyze what sells and what doesn’t. There is good science around useful local assortment and findings that 20 to 25 percent of merchandise could come out and not disappoint customers.

Q: Is the current retail environment infusing new life in category management?

A: In the past few years, there has been a focus on key strategic differentiators in retailing; one is clearly perishables, another private label, another pharmacy, and the fourth is organic. People are looking for unique ways to differentiate. Category management is a catalyst.

In perishables, there has been an explosion and redirection of thinking. Although fresh is critical, the concept of assortment and localization is more critical as retailers for the first time jump outside the conventional ideas behind the shopping trip. There’s the “shop interrupt”. I walk into the store midweek for a quick trip to pick up bread, milk, eggs, a basic stock adjustment, and all of a sudden the freshest looking perishable display catches my eye; defining, innovative merchandising that instantaneously appeals to the consumer and changes the dynamics of the trip.

Aisle displays are prolific. Consumers are bombarded by an average of 75 to 100-plus in-aisle displays a week. People have become numb when they walk into a cacophony of produce displays. The use of displays can have tremendous payoff if you get that right. All of a sudden, you begin to appeal to the different senses and desires; healthy, exotic, family-stable, convenient, comfortable, self-indulgent. That’s when a consumer will pay $3.50 for a Chinese pear apple.

Q: How is IRI partnering with retailers like A&P?

A: Leading-edge retailers today are using information technology to manage perishables in new ways, tracking and analyzing POS data to better understand the customer and store market segment, to begin to get a stronger picture of the landscape, of what’s important in market penetration, store trends, cluster performance. We provide a detailed analysis of how and what we track, and we try to help the retailer understand not only the value of packaged, but non-packaged produce in the stores.

It should be used to drive strategy and assortment based on what’s important to the customer.

Whole Foods has driven its entire strategy around wholesome freshness; Trader Joe’s on freshness and uniqueness.

Q: Do you see more venues using category management to bolster perishables strategies?

A: Very clearly in the next three to five years, more grocers are looking to reinvent the perishable category. In the next five years, you’ll see the trend spill over to unconventional venues. We expect to see pretty strong representation of perishables in convenience stores and drug stores for very small market baskets. We’ve validated that with consumer panel data. You will see a continuation of the trend in alternative channels to introduce coolers and freezers for perishable foods.

Q: In my discussions with dollar stores, integrating produce has been a slower process than anticipated due to the complex nature of the business. What have you found?

A: Dollar stores would love to move to the perishable world, but the segment has an uphill climb. You really have to understand how a store gets fixtured and specifically what types of products the fixtures and the store can handle. I’m not convinced the dollar store framework has the propensity to become a force in this area.

Q: Is customer-centric thinking really new?

A: Every retailer is working on the concept of the relevant customer. Everyone essentially is struggling to understand the consumer who shops in their stores, what sells and what doesn’t sell. Loyalty programs are being created, an entire wave of segmentation and analytics is being created.

Q: What comes of that?

A: Some are deciding to abandon certain customer segments, short-term and long-term. Today, if you take a typical grocery store, the real winners will be those that pick select customers to target by shopping experiences and strategically implementing category management abilities from there. If I believe in the fresh shopper looking for health and wellness and having fresh snack attacks, I’m interested in being the best of the best in fresh snacks so my customer won’t switch to a competitor.

Determining the useful customer is probably the biggest single struggle. How much I spend on each trip as opposed to how much I spend on an item or category. That 59 cents for the five pounds of sugar is interesting, but what’s more important is what the baking customer does during the rest of the shopping trip, and capturing all the necessary items to support that customer.

This is a strategic change in loyalty-card thinking from how much the customer spends to how well I’m supporting my shopper. Choose to create differentiation in three to five shopping experiences, and those shoppers never wander away.

Q: Don’t most consumers vary shopping experiences based on occasion, time of the week, etc.?

A: If you go into market basket data, it can tell you what the compelling shopping experiences inside your store are. There are probably 27 to 30 different ones. It could be weekly stock-ups, snack attacks, pet lovers, nature lovers, all with very structured reasons and interpretations.

You point to the traditional mistake of defining characteristics of a weekly shopper, when in fact they may be here for four or five reasons at different times of the month.

The key is to find three to five dominant ones in the stores and determine how to change merchandise displays based on that information.

Assume all three of us go to the grocery once a month to maintain our homes. If the concept of home maintenance turns out to be one of the reasons, you have to develop your selection so that you are the category authority in home maintenance. That involves a change in the physical displays.

Bloom is one of the first stores in America creating a separate express [grab-and-go near the front of the store] section, a very powerful strategy.

Q: So when you say that 20 to 25 percent of merchandise could be eliminated and not disappoint customers, is that all customers or just the majority?

A: A major initiative is useful assortment. In the average grocery store today, without question 20 to 25 percent of merchandise is not needed. To document this statistically, we took 25 stores including major combo, drug and grocery, looking at 16 million transactions. There was one whole category in convenience food and drink where 72 percent of the stores didn’t sell a single item in 16 weeks. Determining useful assortment by category is painstaking. There is wonderful folklore on what the customer buys and doesn’t buy.

Q: As retailers weed out that 25 percent of merchandise that’s not selling, what will fill the voids?

A: You will see a big shift in product development. Retailers are now trying to move to useful assortment and 25 percent of shelf space is open now. This will drive a whole different level of innovation. Retailers don’t spend enough time in new product innovation.

The largest single marketplace in the next five years won’t be Hispanic. Baby boomers will be the largest single segment of the U.S. market in the next five years, with an additional $46 billion of spending over what they spend today. And it doesn’t matter what products you introduce if they’re on the top shelf and older Boomers can’t reach them. Plannograms are critical to productivity of facings.

Q: With all the technological advances in information gathering, I imagine there is no shortage of data available, but are retailers actually using it, and if so, are they able to sift through it to effective ends?

A: Most retailers have a plethora of IRI data and demographic statistics on consumers, but part of the strategy is packaged insights. How do I use information to determine what items to sort and delete, space layout, pricing, the best communication strategy for my consumer base? It’s not simple.

Q: How does IRI address this complexity?

A: We have to understand what is in their stores, and their market, and then one higher. Consumer panels tell us where they shop; how much of their wallet is spent at A&P, a second retailer and third retailer. If we take the POS data and overlay that with the consumer, we can assess share of stomach in perishables by household. We can also see leakage, and the affects of putting something on promotion.

The world of category management, the way we know it today, is dead. The next generation is designed around customer segments and store clusters. Instead of managing items and categories, it’s applying items and categories to customer segments and store clusters for localization.

Q: What do you mean by localization?

A: Localization goes back to the concept of the fresh fruit cart in New York. The strategy and thought process for 10 years has been to build localized stores. A good way to look at it is that 80 percent of products are common with 20 percent localized based on ethnicity, age grouping, customer segments and shopping experiences.

Retailers are trying to get localization in place. It will be first realized in sister stores or like stores. This is a behavior model. When we talk segmentation, it’s not necessarily traditional, loyalty-based, profit-based. It will be behavior-based.

The next generation of category management looks at how consumers behave versus what they buy and don’t buy.

A&P is at the forefront of segmentation. Food Emporium is a brilliant concept. A&P is attempting to structure business differently with relevant tiers, addressing low-end customers with a budget-conscious store representing trust and value, in the mid-tier and upper-tier focusing on convenience/express service, comfort, self indulgence, and another one for health and wellness. They are trying to bring products and price points serving those strategic behaviors to be better positioned. A&P is attempting to have better stickiness with its customers, and I believe they are achieving that.

Wal-Mart is trying to redefine who they are in a dynamic world, which becomes a bigger issue when you’re talking about a $350 billion company. You can’t be everything to everybody. You need to be the important thing to the people you serve.

Q: What industry changes are set to take place moving forward? Where does produce fit in?

A: For a couple of generations, the 1950’s, 60’s, and 70’s, we’ve seen acquisitions and growth, leading to market saturation; in the 80’s and 90’s, a world of acquisitions and consolidations. The 2000’s are a time to change format, rethink strategies to focus on the consumer. It’s a tougher environment to compete in. The shopper is less loyal and more discerning than he or she has ever been.

The biggest sellers are generic; the touch points are specific, understanding the price points and markets. Some retailers will get out of some categories or portions of categories, and some will get into new ones.

The industry is dynamic and we’ll see further consolidations, format innovation and experimentation, reinvention of categories. The produce category will rise to a different level of healthiness. Look at Hannaford’s healthy star labeling program as an excellent example. Stores are hiring dietitians. A 54-year-old woman whose blood sugar is starting to rise will want display signage and messaging to help her choose what she should buy.

I hire a dietitian because it’s no longer about the physical vegetable; it’s how the product is suited to the consumer’s life. It’s a big shift in thinking. Why will they use the product? It’s about putting relevant product on the shelf. A big transformation is occurring.

Q: How does information regarding produce and perishables more broadly interconnect with category management strategies throughout the store?

A: Perishables always must be viewed as part of the overall strategies and over-arching requirements for the store. There is a mandate that retailers begin to understand the total store. We’re at a different level, perishables are critical to the store, but it is also important to understand their relationship and interaction to the rest of the store. The customer has product choices beyond the produce department and it is crucial to analyze how shopping behaviors influence those choices. A healthy eating person may shop perishables, but also purchase vitamin supplements, maybe look for certain types of red wine in the wine department, and shop both organic fresh herbs and organic dry goods.

Shopping behavior is paramount. Thinking of the store with a category isolationist perspective will give a little growth, but thinking of the linkage of each category to the rest of the store will lead to significant growth.

Thom certainly has his arms around many of the hot buttons in retailing today. We take a few points to be especially valuable:

1) There is good science around useful local assortment and findings that 20 to 25 percent of merchandise could come out and not disappoint customers.

This means that retailers are wasting a lot of space and money, vendors are vulnerable to having product lines discontinued by retailers, and there is a whopping opportunity for innovation.

2) In the last few years, there has been a focus on key strategic differentiators in retailing; one is clearly perishables, another private label, another pharmacy, and the fourth is organic.

So we are in a good area in perishables. Note, however, that a big part of the value equation for retailers in stocking organics is differentiation. As supply bottlenecks are cleared through and organics become ubiquitous, the value for retailers in stocking them may decline.

3) … jump outside the conventional ideas behind the shopping trip. There’s the “shop interrupt”. I walk into the store midweek for a quick trip to pick up bread, milk, eggs, a basic stock adjustment, and all of a sudden the freshest looking perishable display catches my eye; defining, innovative merchandising that instantaneously appeals to the consumer and changes the dynamics of the trip.

Can retailers merchandise their stores to transcend their own limitations? Or, inevitably, does any attempt to do this detract from the core competency of the store. In other words, is that dynamic changing perishable display just in the way of another shopper?

4) Every retailer is working on the concept of the relevant customer. Everyone essentially is struggling to understand the consumer who shops in their stores, what sells and what doesn’t sell. Loyalty programs are being created, an entire wave of segmentation and analytics is being created.

One wonders if Wal-Mart did this before running those ads in Vogue?

5) Today, if you take a typical grocery store, the real winners will be those that pick select customers to target by shopping experiences and strategically implementing category management abilities from there. If I believe in the fresh shopper looking for health and wellness and having fresh snack attacks, I’m interested in being the best of the best in fresh snacks so my customer won’t switch to a competitor.

The question, though, is whether a general mass market format, such as conventional supermarket, won’t inevitably lose all these “select customers” to specialized outlets. So if “fresh snacks” are the thing, maybe Tesco will do it better and more conveniently. If “wholesome freshness” is what is being sought, maybe Whole Foods will open in the neighborhood. Is it reasonable to think a “general store” will be the “best of the best” — doesn’t that sound more likely to be a specialty store?

6) You point to the traditional mistake of defining characteristics of a weekly shopper, when in fact they may be here for four or five reasons at different times of the month.

As Coca-Cola revealed in a report they sponsored a few years ago, many people shop many different venues at different times. So, in many cases, the Whole Foods shopper is not a distinct person. The same person can normally go to a conventional supermarket but whenever she is doing a dinner party, shop at Whole Foods. The key to success is often to understand why people shop a particular store and then orient the store to successfully satisfy this reason the consumer selected the store.

7) Retailers don’t spend enough time in new product innovation.

This has long been a Pundit peeve, very evident in the articles in Pundit sister publication, DELI BUSINESS. In foodservice, operators are used to working with suppliers to develop new items designed to meet their customers’ needs as well as to be able to be cooked and stored in existing facilities. Most retailers, certainly in produce, have no idea what kinds of products their customers would value, and fewer still actually are working to develop these new products. The old retail mentality of sitting and waiting for suppliers to present new products is an enormous obstacle to maximizing sales and profits.

8) The world of category management, the way we know it today, is dead. The next generation is designed around customer segments and store clusters. Instead of managing items and categories, it’s applying items and categories to customer segments and store clusters for localization… This is a behavior model. When we talk segmentation, it’s not necessarily traditional, loyalty-based, profit-based. It will be behavior-based.

This is the mental shift that holds the best hope for refocusing food retailing for greater success. Can we look at the actual behavior of consumers and design stores and create products to work in the context of that behavior?

9) A&P is at the forefront of segmentation. Food Emporium is a brilliant concept. A&P is attempting to structure business differently with relevant tiers, addressing low-end customers with a budget conscious store representing trust and value, in the mid-tier and upper-tier focusing on convenience/express service, comfort, self indulgence, and another one for health and wellness. They are trying to bring products and price points serving those strategic behaviors to be better positioned. A&P is attempting to have better stickiness with its customers and I believe they are achieving that…Wal-Mart is trying to redefine who they are in a dynamic world, which becomes a bigger issue when you’re talking about a $350 billion company. You can’t be everything to everybody. You need to be the important thing to the people you serve.

It has been awhile since anyone had very much good to say about A&P, but in juxtaposing it with Wal-Mart, the issue is clear. Just as HEB created Central Market and A&P acquired Food Emporium, it seems likely that segmentation of store concept is more likely to be a success than trying to attract upscale purchases at the regular Wal-Mart.

10) The produce category will rise to a different level of healthiness. Look at Hannaford’s healthy star labeling program as an excellent example. Stores are hiring dietitians. A 54-year-old woman whose blood sugar is starting to rise will want display signage and messaging to help her choose what she should buy.

I hire a dietitian because it’s no longer about the physical vegetable; it’s how the product is suited to the consumer’s life. It’s a big shift in thinking. Why will they use the product? It’s about putting relevant product on the shelf. A big transformation is occurring.

We’re not sure about this example. Telling pre-diabetics what to do sounds like a recipe for a lawsuit. But the point that we need to think not about the product itself so much as what the benefit is that the consumer will derive from the product is to the point. Of course, selling benefits, not features, is Sales Training 101.

11) Perishables always must be viewed as part of the overall strategies and over-arching requirements for the store… Thinking of the store with a category isolationist perspective will give a little growth, but thinking of the linkage of each category to the rest of the store will lead to significant growth.

The very structure of our business into departments is problematic. We now know that your sales of fresh lemon can be tied to the freshness of the store’s fish. The sales of specialty cheese may depend on the wine selection, and only by attracting the wine and cheese customer can some specialty produce items move.

Success depends on understanding these interrelationships well enough to offer a compelling product to attract and retain the shopping behavior that is the opportunity for a given store.

Many thanks to Thom Blischock and IRI for sharing their insights with the trade.




Pundit’s Mailbag — English And Immigration

We have been following the immigration debate for some time with many pieces, including: Doubtful Immigration Policy, Pundit’s Mailbag — Immigration, Straight Talk On Immigration, Immigration And The Poultry Industry, Reducing Labor With Technology, AgJobs Take 2, Pundit’s Mailbag — AgJOBS vs. Lou Dobbs, Pundit’s Mailbag — AgJOBS Bill Needs More Support, AgJOBS Gets ‘Pull’ From PMA While United And Others Provide The Push and most recently Compromise Reached On Immigration Reform, But The Battle Is Far From Over and Pundit’s Mailbag — ‘Unworkable’ Immigration Plan.

Today the Pundit sits at his desk inundated with calls to action by various produce and ag associations and various direct messages from people in the industry, such as this one sent over, complete with photo, from Jon Schwalls at Southern Valley Fruit & Vegetables, a grower/shipper and importer based in Moultrie, Georgia:

The year is 1919, almost one hundred years ago…

Theodore Roosevelt’s ideas on Immigrants and
being an AMERICAN in 1919.

"In the first place, we should insist that if the immigrant who comes here in good faith becomes an American and assimilates himself to us, he shall be treated on an exact equality with everyone else, for it is an outrage to discriminate against any such man because of creed, or birthplace, or origin. But this is predicated upon the person’s becoming in every facet an American, and nothing but an American"… There can be no divided allegiance here. Any man who says he is an American, but something else also, isn’t an American at all. We have room for but one flag, the American flag… We have room for but one language here, and that is the English language… and we have room
for but one sole loyalty and that is a loyalty to the American people."

— Theodore Roosevelt January 3, 1919

This e-mail, which quotes Theodore Roosevelt in a letter written to the president of the American Defense Society just three days before Roosevelt’s death, along with other comments the Pundit is receiving, indicate that many in the produce industry are concerned for the future of the country. The communications sent out by the trade associations really are not addressing these concerns.

How can they? It is not that many want to disagree with the produce trade associations, most do not. Yet no trade association in any industry has special insight in weighing issues that go to the core of what kind of people we are and what kind of nation we want to be.

Senator James Inhofe, a Republican from Oklahoma, will probably introduce an amendment to make English the official language of the U.S. Many would say one language is essential if everyone is to be able to fully participate in the political life of the country. But surely there is no cucumber industry position on such an amendment, no particular axe for the potato farmers to grind.

The Pundit suspects a political trap anyway. The current bill is very unpopular among the Republican base.

Nancy Pelosi, the Democratic Speaker of the House of Representatives, has already indicated that she would not support the bill as it is.

So, lots of Republican Senators may take a difficult vote politically, then, once weakened by this vote, the Democrats in the House won’t let it pass anyway, preferring to keep the issue alive for the next election.

The initial plan was to try and get the bill through the Senate before the Memorial Day recess. That plan failed and now the plan is to offer amendments all through the week and then resume the process after Memorial Day. This means that senators will be back in their states and representatives back in their districts getting feedback.

One thing the associations clearly are correct on is that on the quality and quantity of that feedback, the future of this bill will surely depend. So whatever you believe, the time to express yourself is today. If you wish to support AgJOBS, click on the Support AgJOBS today button to the side of this page.

Many thanks to Jon Schwalls and to Southern Valley for reminding us of the big issues at stake in this battle.

Mail to a Friend

© 2017 Perishable Pundit | Subscribe | Print | Search | Archives | Feedback | Info | Sponsorship | About Jim | Request Speaking Engagement | Contact Us