Stellar to talk figs and kiwi at United Fresh convention
Stellar to talk figs and kiwi at United Fresh convention
As May was winding down, Kurt Cappelluti of Stellar Distributing could hardly wait to get to the United Fresh Produce Association convention in Chicago a couple of weeks later.
“I’ll be talking Tiger figs and our other four varieties, as well as kiwifruit,” he said in late May. “Both of these items are hot — about as hot as I have seen them in my 28 years in this business.”
The Tiger fig is the newest fig on the market and by the kickoff of the United convention June 10, this Madera, CA-based company will have some fruit to show its customers.
“We will have Tiger figs, along with Sierra, Black Mission, Brown Turkeys and Kadotas in our booth,” said Cappelluti. “We’ll have all five varieties and some kiwifruit.”
Cappelluti pin-balled between discussing kiwi and figs and could hardly contain his excitement.
“The kiwi market is so good and it’s only going to get better,” he said. “It’s like the lime market (which was red-hot during the first several months of the year). I never thought I’d see limes above $60, and they were selling for $120. Later in the season there is going to be no kiwifruit on the market until California gets started.”
Stellar brought in 200,000 cartons of kiwi from Chile and is putting it into controlled atmosphere storage in the hopes of having kiwi for its customers in late summer and early fall.
“I hope I am able to keep it in [controlled atmosphere] and not be pressured to sell it earlier when there is nothing available,” he said.
However, it is not Cappelluti’s intention to see the kiwifruit market rise to dizzying heights. He said the current market of $24-25, which should soon rise a couple of dollars, would suit him fine if it holds all summer. He hopes it won’t continue to go up to a ridiculously high price.
“I hope I can take care of my good customers at a reasonable price all summer long,” he said.
As a point of reference, Cappelluti said that during the last week of May in 2013, he sold about 250 pallets of Chilean kiwi for about $8 per carton. This year, he had twice as much fruit in that time period and the market is three times higher. “We’re doing very well with kiwi this year,” he said.
The California fig market is typically strong in the beginning of the season, and this year’s crop, which is about three weeks earlier than normal, has produced the expected strong early market. The difference, according to the Stellar executive, is that this market should remain strong for the entire length of the season. He believes the fall will see a particularly strong market as the San Joaquin Valley production winds down and volume switches back to the desert.
“There are not going to be a lot of figs around come October, November, December and into January,” he said.
In fact, Cappelluti believes there will be a complete shortage of California tree fruit in the fall as the two- or three-week early jump on stone fruit, grapes and other items this spring will mean a two- or three-week earlier ending to the season. He believes the f.o.b. price on any late summer-fall fruit will benefit, including fuyus, persimmons and pomegranates.
Besides touting the figs themselves at the United Fresh convention, Stellar will also be showcasing eight new packs for the fruit. He said the company has designed its own clamshell that mirrors the shape of the fig rather than using a clamshell designed for apricots and other fruits.
Cappelluti is a big believer in marketing and said last year he upped his trade advertising budget and went to every trade show that he could find from Berlin to San Diego (United Fresh 2013).
“It has worked,” he said. “Our sales are up 30 percent.”
He said he looks for every chance to get together with existing customers or meet new ones and talk about Stellar Distributing “and educate them about our company and what we are doing. It is something I look forward to.”
He opined that the cost of these shows is easily justified if you just pick up one customer.
“I can do the math,” he said. “You spend a few thousand dollars but if you get one good customer worth a half a million in sales, that works.”