FPAA program works to increase retail promos during peak season
FPAA program works to increase retail promos during peak season
NOGALES, AZ -- One of the major activities of the Fresh Produce Association of the Americas, here, according to Lee Frankel, the association's president, is "increasing the number of retail promotions during our peak season." The program was introduced just last year, and it has been going "very, very well this year," Mr. Frankel said.
"This year we have seen ads in virtually every market every week for [at least] one of our main products, be it tomatoes, peppers, cucumbers, squash, watermelons. & And usually multiple items are featured." Those promotions have "really helped support" the prices association members receive for their products by increasing demand, he said.
The association represents companies in the United States, most of them in Nogales, that market fresh fruits and vegetables grown in Mexico.
There are two primary components to the FPAA retail program. One is better crop information to give retailers more confidence in the supply and the other is financial incentives "to support activities that will increase purchases from the previous year."
Surveys conducted with retailers in the past have shown that one concern among retailers was "the lack of crop information that would allow them to source more product from Mexico," Mr. Frankel said. So one of the things the FPAA is doing in its retail program is to send field merchandisers out to meet with retailers "and show them some of the historical volumes and different variations." Additionally, current crop information is related, "so the retailers can have more accurate numbers" to use in their planning process.
The financial incentives generally take the form of money to help with activities such as in-store demos or "helping offset some of the printing costs of their circulars," Mr. Frankel said. "Those tend to be the two main items."
At times, retailers have been reluctant to promote Mexican produce during the winter and spring season when they get "signals" that product may be scarce, he said. Having better crop information this year has helped retailers "feel comfortable promoting," he said. "Supplies are down slightly this year," but there have still been "ample supplies to do multiple aggressive promotions."
(For more on the Nogales deal, see the March 6 issue of The Produce News.)
"This year we have seen ads in virtually every market every week for [at least] one of our main products, be it tomatoes, peppers, cucumbers, squash, watermelons. & And usually multiple items are featured." Those promotions have "really helped support" the prices association members receive for their products by increasing demand, he said.
The association represents companies in the United States, most of them in Nogales, that market fresh fruits and vegetables grown in Mexico.
There are two primary components to the FPAA retail program. One is better crop information to give retailers more confidence in the supply and the other is financial incentives "to support activities that will increase purchases from the previous year."
Surveys conducted with retailers in the past have shown that one concern among retailers was "the lack of crop information that would allow them to source more product from Mexico," Mr. Frankel said. So one of the things the FPAA is doing in its retail program is to send field merchandisers out to meet with retailers "and show them some of the historical volumes and different variations." Additionally, current crop information is related, "so the retailers can have more accurate numbers" to use in their planning process.
The financial incentives generally take the form of money to help with activities such as in-store demos or "helping offset some of the printing costs of their circulars," Mr. Frankel said. "Those tend to be the two main items."
At times, retailers have been reluctant to promote Mexican produce during the winter and spring season when they get "signals" that product may be scarce, he said. Having better crop information this year has helped retailers "feel comfortable promoting," he said. "Supplies are down slightly this year," but there have still been "ample supplies to do multiple aggressive promotions."
(For more on the Nogales deal, see the March 6 issue of The Produce News.)
