Opportunities explored at FPAA convention
Opportunities explored at FPAA convention
RIO RICO, AZ -- Members of the Nogales produce industry convened at the 38th annual Nogales Produce Convention & Golf Tournament, here, Nov. 29- Dec. 2 to explore ideas about promoting the quality and availability of their products.
Highlighting the gathering were educational sessions held Nov. 29 and a two- day golf tournament Dec. 1-2.
In the first of three educational sessions held Nov. 29 at the Esplendor Resort, Jim Degen of J.M. Degen & Co., which conducts research about foodservice trends, outlined the shifting relationship between buyers and sellers, stating that "buyers are in the driver's seat." As a result, in order to secure business, suppliers need to look for ways to help buyers reduce costs, increase profits and solve operating problems.
Luckily, said Mr. Degen, produce is well positioned to help foodservice operators increase their bottom line. "When you add produce to anything [at foodservice], it makes money," he said, citing a story published in The Wall Street Journal earlier this year that revealed that when McDonald's added salads to its menu, the average check rose 5 percent.
Mr. Degen said that for casual dining operators, the addition of produce to the plate adds value to the overall dining experience by adding flavor, color and texture; meeting diners' desire for a healthy meal; providing plate coverage; and improving the overall plate presentation.
Organic produce is just beginning to take off in foodservice, according to Mr. Degen, who said that it appeals to a segment of the population that spends a lot of money on food. Exotic and supersweet fruits are currently a popular trend in menu development.
One challenge that suppliers face when working with foodservice operators is staying ahead of menu trends, since menu development requires a long lead time. Mr. Degen also said that there is much competition on menus for a limited number of items, meaning that suppliers must work closely with operators to assess their needs.
Roberto DeAngelis, culinary director for PF Chang's restaurant, followed up on the point of heavy competition on menus during the second educational session. He said that currently, the pipeline for menu development at the roughly 150 locations in the chain stretches to 2008, meaning that those wishing to supply the chain need to work about two years out.
Mr. DeAngelis broke down the chain's menu into three distinct groups. The top tier is comprised of the mainstay items on the menu that draw the regular customers; this tier, which includes lettuce wraps, has 11 dishes and makes up 51 percent of sales. The second tier is comprised of 41 items and makes up 39 percent of sales. The third tier he described as appealing to those customers who step down from an expensive steakhouse and are looking for "a $50 experience for $20."
The chain, he said, has purchased $33 million in produce during the past eight months.
Don Harris, vice president of produce for Wild Oats Markets, spoke about the opportunities present for the Nogales trade, which he said plays a crucial role in supplying produce during the winter months.
At Wild Oats, the second largest natural foods market behind Whole Foods, approximately three-quarters of the produce sold is organic; at conventional supermarkets, by comparison, an average of 6 percent of produce sold is organic.
At Wild Oats, typical organic customer's includes college students, health professionals, young mothers, aging Baby Boomers and "foodies" with families. The top reasons for eating organic, he said, are a desire to eat healthy and take control of one's own health; providing the best nutrition for one's family; a desire to eliminate pesticide residue and genetically modified organisms from one's dietary intake; supporting environmental and sustainable causes; and supporting local growers. In 2005, the top five organic produce items in terms of sales were bananas, broccoli, vine-ripe tomatoes, Fuji apples and baby peeled carrots.
Mr. Harris said that mutual opportunities exist between Wild Oats and Nogales-area producers because the cost of organic production is going down, as growers are getting better at organic growing practices. He cited organic green beans and organic eggplant as two items that have great potential.
"They are in short supply and they sell well whenever we can get them," he said.
On the social side of the gathering, the convention kicked off with a rousing opening party at La Roca, just over the border in Nogales, Mexico. The popular golf tournament was held Dec. 1-2 at the Rio Rico Country Club and Tubac Country Club. A reception Dec. 2 brought the 38th annual convention to a close.
(Additional photos from the event appear in the Dec. 11 issue of The Produce News.)
Highlighting the gathering were educational sessions held Nov. 29 and a two- day golf tournament Dec. 1-2.
In the first of three educational sessions held Nov. 29 at the Esplendor Resort, Jim Degen of J.M. Degen & Co., which conducts research about foodservice trends, outlined the shifting relationship between buyers and sellers, stating that "buyers are in the driver's seat." As a result, in order to secure business, suppliers need to look for ways to help buyers reduce costs, increase profits and solve operating problems.
Luckily, said Mr. Degen, produce is well positioned to help foodservice operators increase their bottom line. "When you add produce to anything [at foodservice], it makes money," he said, citing a story published in The Wall Street Journal earlier this year that revealed that when McDonald's added salads to its menu, the average check rose 5 percent.
Mr. Degen said that for casual dining operators, the addition of produce to the plate adds value to the overall dining experience by adding flavor, color and texture; meeting diners' desire for a healthy meal; providing plate coverage; and improving the overall plate presentation.
Organic produce is just beginning to take off in foodservice, according to Mr. Degen, who said that it appeals to a segment of the population that spends a lot of money on food. Exotic and supersweet fruits are currently a popular trend in menu development.
One challenge that suppliers face when working with foodservice operators is staying ahead of menu trends, since menu development requires a long lead time. Mr. Degen also said that there is much competition on menus for a limited number of items, meaning that suppliers must work closely with operators to assess their needs.
Roberto DeAngelis, culinary director for PF Chang's restaurant, followed up on the point of heavy competition on menus during the second educational session. He said that currently, the pipeline for menu development at the roughly 150 locations in the chain stretches to 2008, meaning that those wishing to supply the chain need to work about two years out.
Mr. DeAngelis broke down the chain's menu into three distinct groups. The top tier is comprised of the mainstay items on the menu that draw the regular customers; this tier, which includes lettuce wraps, has 11 dishes and makes up 51 percent of sales. The second tier is comprised of 41 items and makes up 39 percent of sales. The third tier he described as appealing to those customers who step down from an expensive steakhouse and are looking for "a $50 experience for $20."
The chain, he said, has purchased $33 million in produce during the past eight months.
Don Harris, vice president of produce for Wild Oats Markets, spoke about the opportunities present for the Nogales trade, which he said plays a crucial role in supplying produce during the winter months.
At Wild Oats, the second largest natural foods market behind Whole Foods, approximately three-quarters of the produce sold is organic; at conventional supermarkets, by comparison, an average of 6 percent of produce sold is organic.
At Wild Oats, typical organic customer's includes college students, health professionals, young mothers, aging Baby Boomers and "foodies" with families. The top reasons for eating organic, he said, are a desire to eat healthy and take control of one's own health; providing the best nutrition for one's family; a desire to eliminate pesticide residue and genetically modified organisms from one's dietary intake; supporting environmental and sustainable causes; and supporting local growers. In 2005, the top five organic produce items in terms of sales were bananas, broccoli, vine-ripe tomatoes, Fuji apples and baby peeled carrots.
Mr. Harris said that mutual opportunities exist between Wild Oats and Nogales-area producers because the cost of organic production is going down, as growers are getting better at organic growing practices. He cited organic green beans and organic eggplant as two items that have great potential.
"They are in short supply and they sell well whenever we can get them," he said.
On the social side of the gathering, the convention kicked off with a rousing opening party at La Roca, just over the border in Nogales, Mexico. The popular golf tournament was held Dec. 1-2 at the Rio Rico Country Club and Tubac Country Club. A reception Dec. 2 brought the 38th annual convention to a close.
(Additional photos from the event appear in the Dec. 11 issue of The Produce News.)
