IN THE TRENCHES: What lies ahead for your produce operation in 2007?
IN THE TRENCHES: What lies ahead for your produce operation in 2007?
Before the current National Football League season got underway, who would have predicted that the 2005 Super Bowl Champion Pittsburgh Steelers would have compiled such a losing record thus far this year? Hard to believe, isn't it? It's amazing how professional sports teams can be so highly victorious one year and fall flat on their backs the next. It's a whole lot easier becoming number one than it is to remain number one.
The produce industry is a lot like any sport. Every company works hard to build a winning team and reach a top recognizable spot in the industry. But what lies ahead after success for all the victorious champions?
As this year rapidly draws to a close, a number of companies are probably enjoying satisfactory results thus far. In spite of some grueling challenges along the way, the produce industry should experience another positive growth year.
If your company achieved suitable progress and is one of the successful businesses for 2006, what will 2007 be like? After celebrating your victory during these next few remaining weeks, be especially careful not to merely take the following year for granted. Any company can go from champ to chump in a short time by simply becoming complacent. If it happened to the Steelers, it could happen to any company.
In order to sustain positive growth, it will take a serious effort to not allow any areas to carelessly slip away. It can happen swiftly and without notice if company management continues to over-celebrate the previous year's results.
Keith Horder of Business Visions in Phoenix, a produce industry expert and associate, commented, "My thoughts for the produce industry in 2007 are that on the supply side, I believe the banana market will be far less volatile than this past year. It will take all of next year for the producers of the world to establish their share of the market in Europe, which will ultimately affect the U.S. market. I also believe that we will see more acquisitions and consolidations on the supply side as more companies try to establish their best product mix for their buying customers."
He continued, "In retail, I feel the independent operators that cater to neighborhood customers will continue to grab market share from the major supermarket chains while those chains continue to ignore the independent operators as competitors. The bigger discount-type stores will also suffer from these competitors. We will see the retailers that cater heavily to the organic customers continue to rise in sales and expansions, with the more traditional retailers using this year to determine if they really will stay in the organic portion of the business."
Mr. Horder concluded, "Consumers will forget quickly about the recent health-scare issues and purchase fresh produce as before. The recent issues should actually be a plus next year when retail comp sales will automatically increase during that time period. I feel these recent scares will serve to put more emphasis on food safety and traceability from this point forward, which would ultimately be good for the consuming public and our industry. Having said that, we as an industry tend to also forget quickly."
In order to stay on top of the game in 2007, your company will have to be aware of specific vital business areas. These focal points could mean the difference between success and failure.
Be consistent. Several companies can't seem to find themselves. They hop around from one theme or format to another trying desperately to connect with customers. Establish a program, stick with it and then build new segments off it. Just settle down and make it work.
Keep it elementary. Whether your customers are wholesalers, retailers or consumers, refrain from making them jump through hoops with complicated product items and programs. Simple and easy is everybody's primary desire. Get opinions. Before you step over that commitment line, ask other close associates for their views and opinions. If you're a grower, packer or shipper with a new idea, run it past a few outside experts before producing 50 million cartons. Test it.
Be first in something. Create something on your own and be first to kick it off. Who was the first person on the moon? Neil Armstrong. Who was the first to institute the $4 generic prescription program? Wal-Mart. Nobody really knows or cares about who was second. Get the idea?
Watch trends: Keep a sharp eye on the cool stuff to which people take a liking around you. If your company is an innovator, come up with something to fit in with the cool trends of today. Remember when companies jumped all over the "low-carb" craze? That was the cool thing at the time. Be a cool operator. Get out in the trenches: Visit your company. That's right, get out into the deepest areas and check things out. Be sure programs are working and your product is the best. If it isn't and you don't know about it, you're in big, big trouble. Concentrate on selling, not setting up camp in an office.
For all the successes until now, the produce industry will still have to face some very tough challenges as it moves into 2007. Bolstering this year's success requires work.
Avoid being led into areas where you don't belong. Do something better than anyone else. And, above all, never lower your standards.
I wish everyone a very healthy, happy and successful 2007.
The produce industry is a lot like any sport. Every company works hard to build a winning team and reach a top recognizable spot in the industry. But what lies ahead after success for all the victorious champions?
As this year rapidly draws to a close, a number of companies are probably enjoying satisfactory results thus far. In spite of some grueling challenges along the way, the produce industry should experience another positive growth year.
If your company achieved suitable progress and is one of the successful businesses for 2006, what will 2007 be like? After celebrating your victory during these next few remaining weeks, be especially careful not to merely take the following year for granted. Any company can go from champ to chump in a short time by simply becoming complacent. If it happened to the Steelers, it could happen to any company.
In order to sustain positive growth, it will take a serious effort to not allow any areas to carelessly slip away. It can happen swiftly and without notice if company management continues to over-celebrate the previous year's results.
Keith Horder of Business Visions in Phoenix, a produce industry expert and associate, commented, "My thoughts for the produce industry in 2007 are that on the supply side, I believe the banana market will be far less volatile than this past year. It will take all of next year for the producers of the world to establish their share of the market in Europe, which will ultimately affect the U.S. market. I also believe that we will see more acquisitions and consolidations on the supply side as more companies try to establish their best product mix for their buying customers."
He continued, "In retail, I feel the independent operators that cater to neighborhood customers will continue to grab market share from the major supermarket chains while those chains continue to ignore the independent operators as competitors. The bigger discount-type stores will also suffer from these competitors. We will see the retailers that cater heavily to the organic customers continue to rise in sales and expansions, with the more traditional retailers using this year to determine if they really will stay in the organic portion of the business."
Mr. Horder concluded, "Consumers will forget quickly about the recent health-scare issues and purchase fresh produce as before. The recent issues should actually be a plus next year when retail comp sales will automatically increase during that time period. I feel these recent scares will serve to put more emphasis on food safety and traceability from this point forward, which would ultimately be good for the consuming public and our industry. Having said that, we as an industry tend to also forget quickly."
In order to stay on top of the game in 2007, your company will have to be aware of specific vital business areas. These focal points could mean the difference between success and failure.
Be consistent. Several companies can't seem to find themselves. They hop around from one theme or format to another trying desperately to connect with customers. Establish a program, stick with it and then build new segments off it. Just settle down and make it work.
Keep it elementary. Whether your customers are wholesalers, retailers or consumers, refrain from making them jump through hoops with complicated product items and programs. Simple and easy is everybody's primary desire. Get opinions. Before you step over that commitment line, ask other close associates for their views and opinions. If you're a grower, packer or shipper with a new idea, run it past a few outside experts before producing 50 million cartons. Test it.
Be first in something. Create something on your own and be first to kick it off. Who was the first person on the moon? Neil Armstrong. Who was the first to institute the $4 generic prescription program? Wal-Mart. Nobody really knows or cares about who was second. Get the idea?
Watch trends: Keep a sharp eye on the cool stuff to which people take a liking around you. If your company is an innovator, come up with something to fit in with the cool trends of today. Remember when companies jumped all over the "low-carb" craze? That was the cool thing at the time. Be a cool operator. Get out in the trenches: Visit your company. That's right, get out into the deepest areas and check things out. Be sure programs are working and your product is the best. If it isn't and you don't know about it, you're in big, big trouble. Concentrate on selling, not setting up camp in an office.
For all the successes until now, the produce industry will still have to face some very tough challenges as it moves into 2007. Bolstering this year's success requires work.
Avoid being led into areas where you don't belong. Do something better than anyone else. And, above all, never lower your standards.
I wish everyone a very healthy, happy and successful 2007.
