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Fruit of the boom
01/May/2006
Fruit of the boom Demand for berries and cherries is exploding because of their proven health benefits, but there`s plenty of potential for even more growth.

 

Fruit of the boom

Recent studies have proclaimed the dark red and blue fruits of the produce department to be super foods, capable of preventing cancer, improving heart health, easing pain, increasing energy and improving memory. Long overshadowed by citrus, cherries and berries are now coming into their own, pushed to the fore by their high content of antioxidants and pectin, a dietary fiber that supports the digestive system.

And as summer approaches, retailers can take advantage of customized signage programs that tout the health benefits of berries and cherries in their produce departments.

Berries' antioxidant compounds, called anthocyanins, reduce free radicals that accelerate the body's aging process. Blueberries, which contain the highest amount of antioxidants among fruits and vegetables, are experiencing a rebirth in grocery sparked by the recent publicity about their health benefits. According to Chris Mayhew, vice president of marketing for Global Berry Farms, based in Salinas, Calif., fresh blueberries now have a 37% household penetration rate. The implications for retailers looking to optimize sales is to offer a variety of sizes, use the 'berry patch concept' of marketing and cross-merchandise with cereal and cake mixes, for example, she says.

Berries are also a natural fit with the 5 A Day The Color Way campaign, which encourages consumers to eat five deeply hued fruits and vegetables each day for their wide range of vitamins, minerals, fiber and phytochemicals.

Many retailers already promote locally grown produce, and growers such as Global Berry Farms make this practice easier by labeling their year-round line of berries with their location, says Mayhew. The organization works with retailers to create customized marketing campaigns, as well.

The California Strawberry Commission is creating new, customized bright-red signage for retailers on the health benefits of strawberries, including vitamin C, antioxidants and fiber. Just eight strawberries a day may improve heart health, reduce your risk of cancer and improve memory, says Mary DeGroat, director of public relations for the commission, which is based in Watsonville, Calif.

The commission is assisting retailers with category management efforts by analyzing in-market information and reviewing it with senior executives. We show retailers where the gaps are and where they can profit more, says DeGroat.

Well-Pict Berries will be taking the commission's message of promoting the health benefits of strawberries to retailers. The grower plans to target children at retail. Put a bowl of berries in front of children, and they love it, says Dan Crowley, sales manager at Watsonville, Calif.-based Well-Pict. They are our next cycle of shoppers, because baby boomers are already on board. It's one thing to eat something that's good for you, but strawberries taste good as well.

Well-Pict is introducing a couple new varieties this year. There is a constant evolution in the flavor, appearance and aroma of our berries, so we offer the best quality product, Crowley says.

Cherries are one of the few remaining truly seasonal fruits, and many retailers have recognized that consumers are willing to pay extra for these sweet, short-lived delicacies. In most regions of the country less than 50% of the population has purchased cherries within the last year, proving there is tremendous potential for more volume, says Suzanne Wolter, director of business development for Rainer Fruit Co., based in Selah, Wash.

According to a study conducted for the Yakima, Wash.-based Northwest Cherry Growers, 96% of consumers prefer packaged cherries and are willing to pay more for their convenience and quality. Retailers with the best cherry sales maintain highly visible displays with a diverse product and packaging mix throughout the season.

According to the Cherry Marketing Institute, based in Lansing, Mich., ongoing research shows that tart cherries are a rich source of antioxidants, including melatonin, which may help to relieve the pain of arthritis, gout and possibly fibromyalgia. To date, no other fruit or vegetable has been found to have the pain-relieving properties of tart cherries.

Stemilt Growers, based in Wenatchee, Wash., will be working with 5 A Day promotions to push cherries' health message at retail. Cherries taste fantastic. Kids love them, and since mom is the primary shopper, she will continue to buy them because they are good for you and kids love them, says Roger Pepperl, marketing director.

Despite the winter's rains, the cherry crop is expected to be the largest ever, says Pepperl. He adds that Stemilt's season is predicted to start earlier and last three to four weeks longer, because of the company's new ranches in Arvin and Bakersfield, Calif. Planting cherry trees in a warmer climate than northern California is expected to extend the season.

At processing plants, Stemilt is pushing optical sizing instead of roll sizers to pack cherries more accurately. Optical sizing measures the diameter of each cherry by using digital camera images. This feature helps improve the size accuracy of the fruit going into the packed boxes. To pack the gentle Rainier line of creamy yellow cherries, Stemilt added to one of its facilities two more sorting and packing tables with semi-automatic bag fillers and automatic clamshell fillers.

Over the last four years, Rainier Fruit has increased its consumer package capacity, so retailers are selling more packaged cherries and less bulk, says Wolter. She points out that last season 100% of Rainier's U.S. retail sales were in a consumer package, the majority in 2.2-pound catch-weight bags. Demand for bulk cherries domestically is practically nonexistent, she says.

Retailers are looking for larger sizes and better quality. They've found they don't have to promote a 99 cent-a-pound cherry, says Wolter. Consumers are willing to pay $1.29 to $3.99 per pound on ad with everyday retails set between $2.99 and $4.99 per pound.

As markets for berries and cherries become competitive, prices are being driven down and growers are looking for the larger packaging that just a few years ago was mainly found in foodservice and in club stores. Pacific AgPak's modular packaging is growing tremendously, says Ted Behrmann, general manager of the Watsonville, Calif. company.

As more retailers move to the common footprinteuro footprint format for their produce packaging, Pacific AgPak's modular clamshells are designed to fit both the corrugated and returnable plastic container versions of the common footprint trays. The one- and two-pound clamshells are in full production and already being shipped to retail locations.

We are constantly listening to our growers and listening to retailers, packers, shippers and shoppers on how to redesign and improve our products, says Behrmann. Also, as we're doing that, we are making sure to work throughout the whole system. Sometimes, you have to work backward from the retailer to the growers, and it takes some detective work at times.

Pacific AgPak is looking at a recently created starch-based plastic for use in containers and packaging, but we need to make sure the application is right, says Behrmann.