Endless Summer

An increasingly global industry feeds demand for fresh produce year-round.

'T is the season for local produce, but where would we be without imported bananas, apples and tomatoes?

The answer, of course, is that we'd be up a tree with regard to bananas, which aren't grown commercially in the United States. As for apples and tomatoes — other top produce imports — demand would far exceed supply.

Today's health-conscious consumer has developed a year-round yen for a wide variety of fresh fruits and vegetables, from tropical treats to plump berries to slender asparagus. A heightened focus on nutrition, coupled with a more sophisticated American consumer, has driven the demand for produce from around the world.

According to data from the USDA Economic Research Service, the value of U.S. vegetable imports doubled handsomely from just over $3.6 billion in 1999 to nearly $9.6 billion in 2011. The value of U.S. fruit imports also increased more than twofold during that time, swelling from about $4.9 billion to $12.3 billion. Industry analysts expect both the volume and value of imported produce to continue their upward climb.

Wickedly Popular

A recent report from the consumer research experts at Chicago-based Mintel found that tomatoes and peppers both made the top 10 for greatest dollar share of fresh vegetables for the 52 weeks ending Oct. 31, 2011; bananas, apples and citrus, meanwhile, ranked among the top five for largest dollar share in the fresh fruit category. The data puts the importance of our global greengrocer marketplace into perspective, as tomatoes, peppers, bananas, apples and citrus are all produce-aisle heavyweights and among the department's top imports.

"Imported fruit now makes up almost half of all fresh fruit sold in the U.S.," notes Nancy Tucker, VP of global business development for the Newark, Del.-based Produce Marketing Association (PMA) in Key Trends & Their Impact on the Fresh Produce Industry. The 2011 report further notes that bananas, the most popular fruit in the United States, "account for more than half [of] all imported fruits." In looking at all other fruits, Tucker found that apples have the largest market share of imported fruit.

Citrus, another fan favorite, also represents a significant share of imported produce. Together, the market share for oranges, grapefruit, temples and lemons comprises 32 percent of the imported fruit market outside bananas, Tucker reveals.

When it comes to vegetables, Tucker's Key Trends report found that tomatoes and peppers are the most popular imported vegetables. Asparagus and cucumbers are third and fourth, respectively. The lion's share of imported vegetables (two-thirds) comes from Mexico, and Canada is the next most significant exporter, providing 19 percent of imported vegetables to the United States

A Global Garden

Whether it's blueberries from Argentina, cherries from Chile or avocados from Mexico, there's no denying the increasingly international dynamic of our fruit and vegetable supply. These days, however, any discussion of imported produce must include one of the department's fastest-growing sellers. "Berries are the clear produce department sales leader," says Mintel. The firm found that berries comprised 17 percent dollar share of fresh fruit sales for the 52 weeks ending Oct. 31,2011, making them the No. 1 performer across the fresh produce market.

In perfect sync with increased demand, both Chile and Argentina have recently launched U.S. campaigns for their blueberries. The Argentinean Blueberry Committee created a "Fall for Argentinean Blueberries" campaign for 2011-12. Meanwhile, the Chilean Fresh Fruit Association, which recently redesigned the logo for all produce from that country, has been working with the U.S. Highbush Blueberry Council in Folsom, Calif., on a "Little Blue Dynamos" promotion. The new logo will premiere with the next Chilean blueberry season, which typically begins in mid-December.

Globetrotters: The Oppenheimer Group Takes Five

One of North America's top fresh produce companies, the Vancouver, British Columbia-based Oppenheimer Group imports and delivers more than 100 varieties of produce from 25-plus countries, and also markets its own branded products as well as those of its partners.

To get a pulse on the latest in global produce,Progressive Grocer caught up with John Anderson, Oppenheimer chairman, president and CEO, to gauge his views on everything from locally grown to tips for boosting the bottom line.

PG:How has the increasingly global nature of the produce industry influenced your business?

Anderson: Oppenheimer has been an international produce marketer for a very long time — since we first brought Japanese mandarins into Canada over 120 years ago. We've enjoyed partnerships with growers in Chile, New Zealand and over two dozen countries for many years, so we've seen a great deal of growth and change.

The last few years have been unprecedented, however, with new products gaining access to the U.S. market, like citrus and avocados from Peru, for example. We have also seen shifts in preferences due to changing demographics. There's a great opportunity to build consumption with high-quality, flavorful produce from around the world.

But at the same time, the U.S. dollar has weakened significantly alongside the currency of many producing countries. That makes it difficult to attract product to this market at times, because of the negative impact on returns once the sales proceeds are exchanged into the grower's currency. As a result, we're striving for greater efficiencies across the supply chain, so the value to the consumer remains high, and the return to the grower is as strong as it can be.

PG:Buying local is a strong food trend, especially when it comes to produce. How do you respond to this phenomenon, and are foods from far and wide equally sought after? Anderson: Local produce in season certainly has strong appeal, and can deliver value for domestic growers and retailers alike. It can also make consumers feel closer to the grower, and create a greater understanding and level of comfort about the food they eat, while they are supporting their community.

Globetrotters

At the same time, just as a pint of fresh berries grown nearby is very difficult to resist in the summertime, people are looking for those same berries (and many other items) all year long. The only way to meet that demand is to import the fruit from other countries.

As consumers, we have become accustomed to finding what our families like to eat in the produce department 365 days a year. Because very good-quality produce is available from other parts of the world, the idea of seasonality remains a bit blurry for many, despite the high-profile locavore movement. Year-round availability of preferred items increases access to healthy products and builds consumption of fruits and vegetables.

PG:What advice can you give to retailers who want to boost sales of fruits and vegetables from other countries? Anderson: Imported produce sales can be lifted through strategic promotions. Most retailers do a really good job of this. We see many peach, plum and nectarine ads in January and February, for example, when consumers start to crave a little taste of summer. We have seen boosts in imported cherries in the last year as well. During the summer, cherries deliver greater revenue per square foot than any other item in the section. Retailers promoting cherries from Chile and Argentina can do well in the wintertime, while also giving shoppers something special to bring home to their families.

PG:Please share your merchandising tips for increasing sales of produce from around the globe.

Anderson: Regardless of where produce is grown, it has a story to tell. Retailers who convey that story to their shoppers — via point-of-sale material, social media, blogs and websites, for example — describing the flavor or unique nutrition benefits or featuring the grower, earn positive results.

Several of our international growers are taking the extra step by joining the Rainforest Alliance or becoming Fair Trade Certified. When these stories are told, consumers discover that while the product may have traveled a little further than a locally grown item, the eating experience will be similar, as are the growing practices behind it.

PG:What's the latest from Oppenheimer?

Anderson: We are particularly excited about a new apple called Envy, which is grown under license to Enza. We market it from New Zealand, where it originated, in the summer months, and Washington state in the winter. It is a natural cross between a Royal Gala and a Braeburn, and has a distinctive, crisp sweetness. But perhaps what sets Envy apart the most is that it does not brown when it is cut.

PMA Knows Global

In response to the increasingly international nature of the produce industry, the Produce Marketing Association (PMA)has launched a series of Fresh Connections education and networking events in the United States and around the world. "Both the global and domestic Fresh Connections have attracted hundreds of produce industry professionals for years," says Meg Miller, public relations manager.

PMA VP of global business development Nancy Tucker spoke with PGfrom Mexico, where she was wrapping the fifth installment of the Fresh Connections series there. For Tucker, the event, which drew a record 300 participants, reinforced the advantages of an international produce community. "It's a global industry, and we're all facing many of the same opportunities and challenges," she observed. "The contacts that can be made through events like this are invaluable."

After five years of Fresh Connections in Mexico, Tucker has witnessed firsthand the positive impact of global collaboration: "What impressed me was the commitment to food safety and trace-ability at a higher level than I've ever seen in Mexico before, and the growth of the Mexican market, where certainly price is still important, but quality and presentation are making a difference in the marketplace."

Newark, Del.-based PMA holds Fresh Connections events in countries including Mexico, Chile, Peru, Brazil, South Africa, New Zealand and the United States. For details on upcoming events and informative snapshots of the world's most important produce suppliers, visit www.pma.com/global.