Sunkist to roll out cut-fruit-in-glass line
Sunkist to roll out cut-fruit-in-glass line
MONTEREY, CA -- Randall Freeman, at one time the national director of sales for the cut-fruit-in-glass line for Del Monte Foods Co., has entered into a multi-year licensing agreement with Sunkist Growers Inc. to launch a cut-fruit- in-glass line under the "Sunkist" brand name to compete with Del Monte.
Mr. Freeman's newly formed Freeman Foods LLC, based here, will handle all sales and marketing logistics. Under terms of the agreement with Sunkist, Freeman Foods can sell product in plastic or glass in the United States and Canada.
National distribution is set for Jan. 23, 2006. The product won't launch in Canada -- or club stores or any other channels other than U.S. retail -- until the operation's second quarter, Mr. Freeman said.
While at Del Monte, Mr. Freeman helped to develop the category, which now exceeds $100 million in annual sales and is controlled nearly exclusively by Del Monte.
Mr. Freeman, who most recently was with Watsonville, CA- based California Giant as its vice president of sales and marketing for fruit products, left the company a few months ago and approached Sunkist with his idea of launching a cut-fruit-in-glass line. Sunkist had been looking at the category anyway, Mr. Freeman said.
Del Monte has grown its line to more than 15 items packaged in a variety of glass and plastic containers. Sunkist is launching with 17 SKUs - nine items in 24-ounce glass and eight items in eight-ounce plastic. Sunkist will focus on eight or nine core items that parallel Del Monte's line, namely red grapefruit, peaches, citrus salads, apricots, mandarin oranges, pears, pineapple, mangos and tropical salad. Every item packaged in glass also will be packaged in plastic except pears, Mr. Freeman said.
"The category has 100 percent distribution by one player," Mr. Freeman said, adding that he couldn't have found a better company to market cut-fruit-in-glass products than Sunkist.
Mr. Freeman said that the sales and marketing infrastructure is in place, and an f.o.b.-based, produce- specific distribution system for the product has been created. "We will service the retailer with the most efficient cold-chain system," Mr. Freeman said.
"We will have consistency year round," Mr. Freeman said, adding that his company will source product from the United States, Mexico, South Africa and China. His company will have two processing facilities in China and "likely will have two processing facilities in Mexico," he said.
The category's value-added products are packaged in a natural juice preservative and have a shelf life of anywhere from six to 12 months, Mr. Freeman said. The mason-jarred product will have a price point at retail of $3.49 to $3.99; eight-ounce plastic containers will have a price point at retail of $1.79 to $1.99 in both multi-packs and variety packs, Mr. Freeman said. The biggest growth in the category is with single-serve plastic containers.
Mr. Freeman has hired Ed O'Malley -- most recently with Dole Food Co.-owned Coastal Berry Co. in Watsonville, CA -- as vice president of sales for Freeman Foods. Freeman Foods has hired about 50 sales and marketing people, including four regional sales managers. As of late October, there was a six-person sales staff in the Monterey office.
Mr. Freeman's newly formed Freeman Foods LLC, based here, will handle all sales and marketing logistics. Under terms of the agreement with Sunkist, Freeman Foods can sell product in plastic or glass in the United States and Canada.
National distribution is set for Jan. 23, 2006. The product won't launch in Canada -- or club stores or any other channels other than U.S. retail -- until the operation's second quarter, Mr. Freeman said.
While at Del Monte, Mr. Freeman helped to develop the category, which now exceeds $100 million in annual sales and is controlled nearly exclusively by Del Monte.
Mr. Freeman, who most recently was with Watsonville, CA- based California Giant as its vice president of sales and marketing for fruit products, left the company a few months ago and approached Sunkist with his idea of launching a cut-fruit-in-glass line. Sunkist had been looking at the category anyway, Mr. Freeman said.
Del Monte has grown its line to more than 15 items packaged in a variety of glass and plastic containers. Sunkist is launching with 17 SKUs - nine items in 24-ounce glass and eight items in eight-ounce plastic. Sunkist will focus on eight or nine core items that parallel Del Monte's line, namely red grapefruit, peaches, citrus salads, apricots, mandarin oranges, pears, pineapple, mangos and tropical salad. Every item packaged in glass also will be packaged in plastic except pears, Mr. Freeman said.
"The category has 100 percent distribution by one player," Mr. Freeman said, adding that he couldn't have found a better company to market cut-fruit-in-glass products than Sunkist.
Mr. Freeman said that the sales and marketing infrastructure is in place, and an f.o.b.-based, produce- specific distribution system for the product has been created. "We will service the retailer with the most efficient cold-chain system," Mr. Freeman said.
"We will have consistency year round," Mr. Freeman said, adding that his company will source product from the United States, Mexico, South Africa and China. His company will have two processing facilities in China and "likely will have two processing facilities in Mexico," he said.
The category's value-added products are packaged in a natural juice preservative and have a shelf life of anywhere from six to 12 months, Mr. Freeman said. The mason-jarred product will have a price point at retail of $3.49 to $3.99; eight-ounce plastic containers will have a price point at retail of $1.79 to $1.99 in both multi-packs and variety packs, Mr. Freeman said. The biggest growth in the category is with single-serve plastic containers.
Mr. Freeman has hired Ed O'Malley -- most recently with Dole Food Co.-owned Coastal Berry Co. in Watsonville, CA -- as vice president of sales for Freeman Foods. Freeman Foods has hired about 50 sales and marketing people, including four regional sales managers. As of late October, there was a six-person sales staff in the Monterey office.
