FPAA records big turnout at its 39th annual convention
FPAA records big turnout at its 39th annual convention
RIO RICO, AZ -- The 39th annual convention of the Fresh Produce Association of the Americas, held here Nov. 29-Dec. 1, was memorable for several reasons: It was the swan song of departing President Lee Frankel, it brought more than 650 attendees to this southern Arizona location that is the hub of winter vegetable production, and it featured a strong educational session that touted the importance of Mexican produce for four U.S. retail chains.
Mr. Frankel, who has led the association for the past 12 years, announced that he was leaving FPAA to take a similar position with United Potato Growers of America in Salt Lake City.
The Nov. 29 educational session was kicked off by Ron McCormick, vice president of produce for Wal-Mart Stores Inc., who spoke of the mega-chain's Heritage Agriculture initiative.
The initiative, said Mr. McCormick, looks to achieve sustainability and social responsibility by reducing food miles, the term used to denote the distance a food item must travel to reach a consumer. Noting that an item can travel an average of 1,500 food miles before it reaches its ultimate destination, he said that Wal-Mart is looking to reduce that impact by sourcing products locally and bringing them through regional distribution centers.
He acknowledged that Wal-Mart will still import product from Mexico, Chile and other foreign sources when products are not available in the United States, but the Heritage Agriculture program is a priority of the chain's chief executive officer, Lee Scott.
More specific to the Nogales area, Mr. McCormick said that Wal-Mart recently opened a small, leased facility in Nogales to give it a presence in this important area and help facilitate getting its agricultural products across the border. "Wal-Mart is fully committed to direct import and is looking to develop it more, but it is a process that will take some time," he said.
He also said that another advantage to having a presence in the region is that Wal-Mart buyers will be able to learn more about what's involved in producing a product, and that the chain will be able to wean itself off bad suppliers and do more with good suppliers as a result.
"In the past, Wal-Mart let suppliers do all the work as long as they were able to get us the necessary quality," Mr. McCormick said. "That system bred a whole set of [produce] buyers that knew nothing about produce. Now, by getting more involved, buyers will be more educated and will be able to make better decisions."
Mr. McCormick's presentation was followed by a panel discussion, which featured retailers Bill Price of Associated Food Stores, Mike Lobaugh of Haggen and Rick Smith of Save Mart, and their views of the importance of Mexican produce to their chains.
Mr. Price of Associated, which is a cooperative of 480 stores in eight western states, said that the company's mission is to provide world-class service, which includes carrying high-quality produce. He said that the co-op currently carries 16 items grown in Mexico, and he is looking to continue -- and possibly increase -- the offerings from south of the border.
"In the past, I was reluctant to tell customers if things were from Mexico," he said of the former stigma involving food-safety issues with Mexican produce. "Now, the quality is so good, it is a source of pride."
He said that marketers of Mexican products need to continue the emphasis on quality and food safety, and they should look to differentiate their products any way they can.
Mr. Lobaugh, who is vice president of perishables and fresh foods for Haggen, which operates 32 stores in Washington and Oregon under the Haggen Food & Pharmacy and Top Food & Drug banners, stressed the importance of "telling the story of Mexican produce," including how it is grown, handled and inspected.
"There is still something of a stigma attached to Mexican products, and it is important to get the word out about the focus on quality."
To illustrate how the chain "tells the story" of other agricultural producers, he showed slides of point-of-purchase materials it used for an apple grower and a peach grower, which told of them being family farms and described the care and attention given to their crops. Noting that the price was not included in the signage, he said that the materials resulted in increased sales for the apples at a premium price.
For Mexican product, he said that it important for marketers to tell how it is grown, handled and inspected. "It's important to get the word out about your quality," he said. "Tell the story of the families that produce it. Try to convey their passion, why the product is special."
With the p-o-p materials, Mr. Lobaugh said that it is important to keep it simple and informative, and he recommended using high-graphic signage that captured the attention of shoppers and gives them a takeaway message. He also said that it is important to properly train store associates to be able to effectively communicate with customers so that they can build consumer confidence in Mexican product.
Rick Smith, who oversees perishables for Save Mart, said that the chain's location in California's Central Valley means that consumers are very sophisticated when it comes to farming practices, so he also stressed the need for marketers of Mexican produce to tell the story of the product and what makes it stand out among other products.
Mr. Smith said that the company currently does a lot of business with Mexican producers, and this will continue, especially in light of the chain's acquisition of 131 Albertson's stores in Northern California.
A question-and-answer session followed the presentations during which Chuck Thomas of Thomas Produce Sales in Nogales, AZ, asked the retail representatives their view of the most effective merchandising techniques. Mr. Lobaugh replied that any medium at the point-of-sale is effective, especially videos. Mr. Smith agreed and added that sampling works well for the Save Mart chain.
Veronica Kraushaar of Viva Marketing, which helped organize the FPAA convention, asked about the importance of educating store associates. "Store associates are valuable sources of information about what consumers are saying," said Mr. Lobaugh, who again stressed the importance of training. "We have periodic produce manager meetings, and we would welcome a guest speaker who could tell the story of Mexican producers," said Mr. Smith.
John Pandol of Pandol Bros. in Delano, CA, asked about the importance of commodity sales data to retailers.
"It's important," said Mr. Price. "All of that material helps, and you would definitely have an advantage over a supplier who doesn't offer it."
Following the educational sessions was the opening night gala, held at the popular La Roca restaurant across the border in Nogales, Sonora. The annual golf tournament was held Nov. 30 and Dec. 1 at the Rio Rico Country Club and the Tubac Golf Resort. The Grand Closing Fiesta was held Dec. 1 at the Tubac Golf Resort.
Mr. Frankel, who has led the association for the past 12 years, announced that he was leaving FPAA to take a similar position with United Potato Growers of America in Salt Lake City.
The Nov. 29 educational session was kicked off by Ron McCormick, vice president of produce for Wal-Mart Stores Inc., who spoke of the mega-chain's Heritage Agriculture initiative.
The initiative, said Mr. McCormick, looks to achieve sustainability and social responsibility by reducing food miles, the term used to denote the distance a food item must travel to reach a consumer. Noting that an item can travel an average of 1,500 food miles before it reaches its ultimate destination, he said that Wal-Mart is looking to reduce that impact by sourcing products locally and bringing them through regional distribution centers.
He acknowledged that Wal-Mart will still import product from Mexico, Chile and other foreign sources when products are not available in the United States, but the Heritage Agriculture program is a priority of the chain's chief executive officer, Lee Scott.
More specific to the Nogales area, Mr. McCormick said that Wal-Mart recently opened a small, leased facility in Nogales to give it a presence in this important area and help facilitate getting its agricultural products across the border. "Wal-Mart is fully committed to direct import and is looking to develop it more, but it is a process that will take some time," he said.
He also said that another advantage to having a presence in the region is that Wal-Mart buyers will be able to learn more about what's involved in producing a product, and that the chain will be able to wean itself off bad suppliers and do more with good suppliers as a result.
"In the past, Wal-Mart let suppliers do all the work as long as they were able to get us the necessary quality," Mr. McCormick said. "That system bred a whole set of [produce] buyers that knew nothing about produce. Now, by getting more involved, buyers will be more educated and will be able to make better decisions."
Mr. McCormick's presentation was followed by a panel discussion, which featured retailers Bill Price of Associated Food Stores, Mike Lobaugh of Haggen and Rick Smith of Save Mart, and their views of the importance of Mexican produce to their chains.
Mr. Price of Associated, which is a cooperative of 480 stores in eight western states, said that the company's mission is to provide world-class service, which includes carrying high-quality produce. He said that the co-op currently carries 16 items grown in Mexico, and he is looking to continue -- and possibly increase -- the offerings from south of the border.
"In the past, I was reluctant to tell customers if things were from Mexico," he said of the former stigma involving food-safety issues with Mexican produce. "Now, the quality is so good, it is a source of pride."
He said that marketers of Mexican products need to continue the emphasis on quality and food safety, and they should look to differentiate their products any way they can.
Mr. Lobaugh, who is vice president of perishables and fresh foods for Haggen, which operates 32 stores in Washington and Oregon under the Haggen Food & Pharmacy and Top Food & Drug banners, stressed the importance of "telling the story of Mexican produce," including how it is grown, handled and inspected.
"There is still something of a stigma attached to Mexican products, and it is important to get the word out about the focus on quality."
To illustrate how the chain "tells the story" of other agricultural producers, he showed slides of point-of-purchase materials it used for an apple grower and a peach grower, which told of them being family farms and described the care and attention given to their crops. Noting that the price was not included in the signage, he said that the materials resulted in increased sales for the apples at a premium price.
For Mexican product, he said that it important for marketers to tell how it is grown, handled and inspected. "It's important to get the word out about your quality," he said. "Tell the story of the families that produce it. Try to convey their passion, why the product is special."
With the p-o-p materials, Mr. Lobaugh said that it is important to keep it simple and informative, and he recommended using high-graphic signage that captured the attention of shoppers and gives them a takeaway message. He also said that it is important to properly train store associates to be able to effectively communicate with customers so that they can build consumer confidence in Mexican product.
Rick Smith, who oversees perishables for Save Mart, said that the chain's location in California's Central Valley means that consumers are very sophisticated when it comes to farming practices, so he also stressed the need for marketers of Mexican produce to tell the story of the product and what makes it stand out among other products.
Mr. Smith said that the company currently does a lot of business with Mexican producers, and this will continue, especially in light of the chain's acquisition of 131 Albertson's stores in Northern California.
A question-and-answer session followed the presentations during which Chuck Thomas of Thomas Produce Sales in Nogales, AZ, asked the retail representatives their view of the most effective merchandising techniques. Mr. Lobaugh replied that any medium at the point-of-sale is effective, especially videos. Mr. Smith agreed and added that sampling works well for the Save Mart chain.
Veronica Kraushaar of Viva Marketing, which helped organize the FPAA convention, asked about the importance of educating store associates. "Store associates are valuable sources of information about what consumers are saying," said Mr. Lobaugh, who again stressed the importance of training. "We have periodic produce manager meetings, and we would welcome a guest speaker who could tell the story of Mexican producers," said Mr. Smith.
John Pandol of Pandol Bros. in Delano, CA, asked about the importance of commodity sales data to retailers.
"It's important," said Mr. Price. "All of that material helps, and you would definitely have an advantage over a supplier who doesn't offer it."
Following the educational sessions was the opening night gala, held at the popular La Roca restaurant across the border in Nogales, Sonora. The annual golf tournament was held Nov. 30 and Dec. 1 at the Rio Rico Country Club and the Tubac Golf Resort. The Grand Closing Fiesta was held Dec. 1 at the Tubac Golf Resort.
