Period Ending July 12, 2006 CTFA Vice President of Marketing Sheri Mierau We are in the third week of the Tasty Tunes promotion. On day 20 of the 80-day promotion, we’ve already reached a number of redemptions that’s over 25% of the total number of redemptions from last year. During that time, only six out of the 18 divisions that will participate were active in the promotion. These numbers excite us and early signs for a profitable promotion are very good. Over 2,000 image files have been downloaded from the website. Users include retailers, industry members and media. Many editors have been ecstatic to have images readily available for their use. We have had many great articles written in trade publications as well as food features in other periodicals utilizing the images available. Additional photography is being completed this summer to enhance the selection for all. Northeast U.S. / Eastern Canada Ken Berger Markets Visited: New York, New Jersey, Pennsylvania, New England, Ontario, Québec, Atlantic Canada Accounts: New England BJ’s, Big Y, Hannaford, Market Basket, Shaw’s, Stop & Shop, PPO NY/NJ/Western PA A&P Atlantic, Pathmark, Shoprite, Food Town, Price Chopper, Wegmans, Acme, Giant Ontario A&P Canada, Loblaw Companies East, Sobeys Canada Québec Métro, Sobeys Québec, Provigo Atlantic Canada Sobeys Atlantic, AWL Market Observations: Front page flyer ad activity has been reserved almost exclusively these last couple of weeks for either New Jersey blueberries or Northwest cherries – the two hottest produce items by far. With a plethora of peaches available from a variety of regions now, retailers have, for the most part, gone back to identifying origin in their flyer ads, with a great number indicating California as the source. On the other hand, several retailers, particularly in Canada, have gone to premium pricing on yellow peaches and nectarines, mixing and matching conventional fruit with tree ripe, as may be noted in the PLU codes recorded in the store audits below. Acme in particular, took a varied approach the week of July 10, featuring Southern-identified peaches at $0.99 per lb., California identified nectarines at $1.78 per lb. and “Ripe ‘n Ready” identified peaches and nectarines at $1.99 per lb. NORTHEAST U.S. SCHEDULED CTFA PROMOTIONS RETAILER ACTIVITY DATE(S) Acme Category review Presented to CM in May Tasty Tunes and CTFA POS package July Ahold USA Category review Presented to corporate Stop & Shop and to banner CMs in Giant May Big Y Nutrition Consumer Newsletter June/July B.J.’s Customized signage hardware and CTFA POS w/o July 8 Pathmark Category review Presented to CM in May Shaw’s Tasty Tunes and CTFA POS package July Retailers featuring both California identified or tree-ripe tree fruit and Southern tree fruit during this reporting period: w/o 7/3: Acme - “Ripe ’n Ready” peaches or nectarines - 2#/$5 (3rd week running); Southern peaches - $0.99 per lb. (5th week running) w/o 7/10: Acme - “Ripe ’n Ready” peaches or nectarines - $1.99 per lb. (4th week running); California nectarines - $1.78 per lb.; Southern peaches - $0.99 per lb. (6th week running) w/o 7/10: Shoprite - California sweet and juicy nectarines - $1.49 per lb.; California white peaches or nectarines - $1.99 per lb.; tree-ripe plums or nectarines - $1.99 per lb.; California red or black plums - $1.99 per lb.; sweet juicy peaches - $1.29 per lb. Retailers featuring California identified or tree-ripe tree fruit during this reporting period: w/o 7/3: A&P Atlantic - Repeating its California peach, plum and nectarine ad of last week again with the bold advertorial claim, “Left on the tree longer for a more mature flavor.” w/o 7/3: Big Y - “Sweet California Peaches or Nectarines; Extra Large, High in Vitamin A, Good Source of Vitamin C - $1.88 per lb.; White Fleshed Nectarines or Peaches; Fat Free, Sodium Free, Good Source of Vitamin C and Beta Carotene - $1.88 per lb.” w/o 7/3: The Food Emporium - “Tree Ripe Peaches, Plums and Nectarines, From California, Good Source of Vitamin C, the best tasting summer fruits available - $3.99 per lb.” w/o 7/3: Food Town - “Fresh California Nectarines - $1.99 per lb.; California White Flesh Peaches or Nectarines - $2.99 per lb.; California 50 size Large Red or Black Plums - $2.99 per lb.” w/o 7/3: Genuardi’s - “Tree Sweetened Peaches and Nectarines, Large Size - 2#/$4” w/o 7/3: Giant Foods (Carlisle) - “California Nectarines, Large Size - $0.99 per lb.” (Front page) w/o 7/3: Pathmark - “Large California Black Amber Plums – 2#/$5” w/o 7/3: Price Chopper - “Fresh California juicy and sweet, fresh, ready to eat peaches or nectarines - $1.68 per lb.” w/o 7/3: Shaw’s - “Ripe ’n Ready” peaches, nectarines or plums - $1.88 per lb. w/o 7/10: A&P Atlantic - “California Peaches; large size - 2#/$4” w/o 7/10: Big Y - “Sweet California Peaches or Nectarines; Extra Large, Fat free, sodium free, good source of vitamin C and Beta Carotene - $1.88 per lb.; Sweet California Jumbo Red or Black Plums; Low in calories, low in fat - $1.82 per lb.” w/o 7/10: The Food Emporium - “Tree Ripe Peaches, Plums and Nectarines, the best tasting summer fruits available - $3.99 per lb.” (2nd week running) w/o 7/10: Food Town - “California 64 size large Nectarines - $1.99 per lb.; California White Flesh Peaches or Nectarines - $2.99 per lb; California 45 size Red or Black Plums - $2.49 per lb.” (2nd week running) w/o 7/10: Giant Foods (Carlisle) - “California Peaches, Large Size - $0.99 per lb.” (Front page – coming off a front page California nectarine ad last week) w/o 7/10: Pathmark - “Extra large California peaches or nectarines - $1.99 per lb.; Extra large white peaches or nectarines – 2#/$5; Large California Red or Black Plums – 2#/$5” (2nd week running on the black plums) w/o 7/10: Price Chopper - “Fresh California White peaches or White nectarines, sweet and juicy - $1.68 per lb.” w/o 7/10: Shaw’s - “Ripe ’n Ready” peaches, nectarines or plums - $1.88 per lb. (2nd week running) w/o 7/10: Stop & Shop - “Orchard Perfect fresh peaches - $1.79 per lb.” w/o 7/10: Wegmans - “California red or black plums - $1.49 per lb.” Retailers featuring “Southern/Eastern/Local” tree fruit or with no origin specified during this reporting period: w/o 7/3: A&P Atlantic - (Eastern) peaches - $0.99 per lb. w/o 7/3: Pathmark - (Southern) peaches - 2#/$3 w/o 7/3: Shoprite - (no origin) peaches or nectarines - $0.99 per lb. w/o 7/3: Stop & Shop - (Southern) peaches - $0.99 per lb. w/o 7/10: A&P Atlantic - (no origin) nectarines - $1 per lb. (Front page) w/o 7/10: Genuardi’s - (no origin) red or black plums - $1.50 per lb. w/o 7/10: Price Chopper - (Southern) peaches - $0.78 per lb. (Front page) Retailers featuring organic tree fruit during this reporting period: w/o 7/3: Giant Foods (Carlisle) - “Organically grown peaches, large size - $1.99 per lb.” w/o 7/3: Shoprite - “Peaches or nectarines, organic - $2.99 per lb.” CANADA SCHEDULED CTFA PROMOTIONS RETAILER ACTIVITY DATE(S) COMMENTS Loblaw Companies East, Category review for all To be compiled by Awaiting ’05 PPN data from including Provigo, QC regions Fusion at end of this CM and AWL, Atlantic season 90-Day Challenge direct Distribution through to store tear-off June distribution Store visits to be Consumer research conducted through MAP funded activity project August A&P Canada “Fresh Start” in-store Ongoing through end signage program of August 90-Day Challenge direct Distribution through to store tear-off June distribution Store visits to be MAP funded activity Consumer research conducted through project August Métro Consumer research Store visits to be MAP funded activity project conducted through August Sobeys Atlantic "TasteUS!" ad/demo/Air w/e July 8 MAP funded activity Miles promo Sobeys Québec Consumer research Store visits to be MAP funded activity project conducted through August Sobeys Ontario 90-Day Challenge direct Store visits to be MAP funded activity to store tear-off conducted through distribution August Consumer research Distribution through project June Retailers featuring both California identified or tree-ripe tree fruit and “Southern/Eastern/Local” tree fruit during this reporting period: none Retailers featuring California identified or tree-ripe tree fruit during this reporting period: w/o 7/3: Colemans - “California #1 Label Fresh Juicy Nectarines - $1.99 per lb.” w/o 7/3: COOP (The Produce People) - “Ripe ‘n Ready Peaches - $2.49 per lb.” w/o 7/3: Loblaws Québec - (see account recap below) w/o 7/3: Longo’s - (see account recap below) w/o 7/3: Métro - “Ready to eat peaches and nectarines, product of California - $2.99 per lb.” w/o 7/3: Sobeys Atlantic - “One Taste and You’ll Smile, Ripe ‘n Ready Peaches or Nectarines - $1.47 per lb.” (back page of flyer) Also included is the following advertorial: “Ripe ‘n Ready fruit is carefully controlled from the time it is harvested until it reaches you. The right varieties, timing of the harvest, and handling post harvest, deliver a consistent enjoyable eating experience.” w/o 7/3: Sobeys Québec - “Ready Now! Peaches or Nectarines - $1.29 per lb.” (Front page) w/o 7/10: COOP (The Produce People) - “Ripe ‘n Ready Plums, new crop, large size, fresh and juicy, product of California - $1.99 per lb.” w/o 7/10: Colemans - “California #1 Sweet Juicy White Peaches and Nectarines - $1.49 per lb.” w/o 7/10: Loblaws, Québec - “Peaches or Nectarines from California - $0.99 per lb.” w/o 7/10: Métro - “Ready to eat peaches and nectarines, product of California - $2.99 per lb.” (2nd week running); “Ready to eat large red or black plums - $2.99 per lb.” w/o 7/10: Provigo - “California peaches or nectarines - $0.99 per lb.” (Front page) w/o 7/10: Sobeys Québec - “California 56 size white flesh peaches - $2.49 per lb., California 50 size black plums - $1.79 per lb.” Retailers featuring “Southern/Eastern/Local” tree fruit or with no origin specified: w/o 7/3: Loeb - (U.S.A.) Large red or black plums - $1.99 per lb. w/o 7/3: Sobeys Ontario - (U.S.A.) peaches or nectarines - $1.49 per lb. w/o 7/10: Canada Safeway - (U.S.A.) nectarines, white peaches, red plums, peaches and black plums - $1.99 per lb. w/o 7/10: Loblaws, Ontario, Fortinos, Zehrs - (U.S.A.) peaches and nectarines - $1.49 per lb., white peaches and nectarines - $1.99 per lb. w/o 7/10: Real Atlantic Superstore (Loblaws) - (U.S.A.) peaches or nectarines - $0.99 per lb. (Front page) w/o 7/10: Real Canadian Superstore, ON (Loblaws) - (U.S.A.) red or black plums - $0.99 per lb. w/o 7/10: Sobeys Ontario - (U.S.A.) red or black plums - $1.49 per lb. Retailers featuring organic tree fruit during this reporting period: w/o 7/3: Longo’s - fresh organic plums - $1.99 per lb. w/o 7/10: Sobeys Québec - “California 70 size organic nectarines” - $1.99 per lb.; “California 70 size organic plums” - $2.49 per lb. ACCOUNT RECAP: NORTHEAST U.S. ACME - Ordered 150 of the backroom handling posters after receiving the electronic file proof from CTFA on July 7. RLB - Contacted via email by this New Jersey wholesaler: CANADA LOBLAWS QUÉBEC – Front page flyer ad w/o July 3, with California-identified assortment of fruit: peaches and nectarines: conventional - $1.49 per lb.; tree-ripe - $2.49 per lb.; organic - $2.99 per lb.; white flesh - $1.99 per lb.; red and black plums - $2.49 per lb. LONGO’S (ON) - w/o July 3 full page tribute ad to its California shipper. Certainly one of the most spectacular features yet seen. STORE CHECKS RETAIL STORE DATE SPECIES PLU # PRICE LABEL NAME CA yellow peaches TR – 4044 $1.49/lb Ripe ‘n Ready lg 4036 $1.49/lb Ripe ‘n Ready, Z&S CA yellow nectarines – lg 4378 $1.99/lb Kingsburg Sobeys, Toronto 7/4 n/a $1.99/lb Z&S CA red plums 4039 CA black plums – sm CA yellow peaches TR – 4044 $2.99/lb Wawona lg 4378 $2.99/lb Prima Dominion (AP), CA yellow nectarines TR 4401 $2.99/lb Wawona 7/4 - lg Toronto 3035 $2.99/lb CA white peaches – lg CA white nectarines – lg CA yellow peaches TR – 4044 $1.99/lb Fruit Patch, Prima lg 4038 $1.69/lb CA yellow peaches – lg 4378 $1.99/lb Prima CA yellow nectarines TR 4036 $1.69/lb - lg Loblaws, Toronto 7/4 3035 $2.49/lb Prima CA yellow nectarines - lg n/a $1.99/lb Fruit Patch CA white nectarines - lg n/a $2.99/lb Jasper CA red plums CA black plums 4044 $2.99/lb ADV CA yellow peaches TR – 4401 $2.99/lb Ripeway lg Métro, Montreal 7/4 4378 $2.99/lb ADV CA white peaches - lg 3035 $2.99/lb 4042 $3.49/lb CA yellow nectarines TR 4040 $3.49/lb - lg CA white nectarines TR - lg CA red plums – lg CA black plums – lg CA yellow peaches - lg 4038 $1.49/lb ADV CA white peaches – lg 4401 1.99/lb ADV Kingsburg CA yellow nectarines – lg 4036 $1.49/lb ADV Loblaws, 7/4 CA white nectarines – lg 3035 $1.99/lb ADV Kingsburg Montreal 4042 $2.49/lb ADV CA red plums – lg 4040 $2.49/lb ADV CA black plums – lg CA yellow peaches 4038 $1.99/lb CA white peaches - lg 4401 $2.99/lb Kingsburg Provigo CA yellow nectarines – 4035 $1.99/lb (Loblaws), 7/4 sm 3035 $2.99/lb Kingsburg Montreal CA white nectarines – lg 4042 $2.99/lb CA red plums – lg 4040 $2.99/lb CA Black plums - lg CA yellow peaches N/a $1.29/lb ADV CA white peaches – lg 4401 $3.49/lb CA yellow peaches TR – - $4.99 ADV ReadyNow! 2# clam 4378 $1.29/lb ADV Fruit Patch IGA (Sobeys), CA yellow nectarines TR 3035 $3.79/lb 7/4 Montreal - lg - $4.99 ADV ReadyNow! CA white nectarines – lg 4042 $2.99/lb CA yellow nectarines TR – 2# clam CA red plums – lg Western U.S. / Western Canada Matt Ellison Markets Visited: Portland, Seattle, Northern California, Southern California, Phoenix, Cincinnati. Accounts: *Fred Meyer, *Winco, *Kroger Corporate, Albertson’s Corporate, *Costco, *Safeway Corporate, Food 4 Less, *Savemart, *Ralphs, *Stater Brothers, *Fry’s, *Bashas’, *Safeway Buying Office, Raley’s *visited this period Market Observations: Nice weather, larger sizes and lower retail prices have increased sales for Washington and Oregon stores. Many retailers continue to offer two sizes at this time. Washington Fruit Commission is reporting a full crop on peaches and nectarines. They estimate 1.5 million cases of peaches and 700,000 cases of nectarines. Product should start entering stores the week of July 24. Account Recap: Attended the Fresh Produce and Floral Council Trade Show in Anaheim, CA with Sheri Mierau and Angela Davis. The new backroom poster, featuring answers to common questions about peaches, plums and nectarines, was well received by attendees. Brian Balladares, Ralph’s Director of Produce Merchandising, is reporting a good season so far. ”We’ve been running lots of ads with good pricing and quality,” stated Mr. Balladares. Ralph’s stone fruit buying will move to Kroger’s corporate offices in Cincinnati, OH within the next four weeks. Southwest David Anderson Markets Visited: Bentonville, AR; Dallas/Ft. Worth, TX; Austin, TX; San Antonio, TX; Kansas City, MO; Des Moines, IA; Minneapolis, MN; Wichita, KS; Oklahoma City, OK Accounts: Wal-Mart*, Sam’s Clubs*, Schnuck’s, Save A lot, AWG KC*, Ball’s Food Stores*, Hy- Vee*, King Soopers, Minyards, Albertsons Ft. Worth, Brookshire Grocery Company, Fiesta Mart, First Quality, Kroger SW*, FoodTown, HEB*, Central Market, Whole Foods SW, Dierbergs, Dillons*, United Supermarkets, Kroger Cincinnati, Kroger Indianapolis, Kroger Louisville, Kroger Great Lakes, Marsh, Meijer, W. Newell Company (Super Valu), Super Target* *visited this period Market Observations: Ad activity is robust in Central U.S., although quality of ads could improve. Frequency is there but the size, quality and message of ads generally are not. With plum harvest well underway, the last two weeks showed a marked improvement in multi- product ad insertions. Account Recap: Wal-Mart - Met last week with buyer who indicated their intent to message in- store but the ability to match our intent continues to clash with Wal-Mart’s corporate directive to simplify the shopping process, and take down barriers of sight lines, etc. When delving further, it appears there may be some hope, however, to take the significant resource we have available, which is in-store messaging copy, and at least look at testing this concept via some kind of rpc flap / flip top. More to come on this as the concept is further discussed and reviewed. This will be presented to co-managers chosen by Wal-Mart as possible partners. Meanwhile, buyer indicated their intent to visit CA still holds, but their ability to define when that might be is a problem. Volumes are off but improving. Contact is fighting to secure endcap space for the category and in- store positions are excellent. Another action alley display is seen here, taken from an Arkansas market. Quality is excellent, and both size and price are in line with what consumers might view as value. Sam’s - Met with category buyer and reviewed demo sales from weekend of June 23 and provided recap by accounts payable rep at Wal-Mart Corporate. Sales on demo were only fair and will be reviewed in depth, as clearly we need to develop some alternative promotional options here. Demos can be an excellent choice, but this event can only be described as adequate vs. dollars expended. Meanwhile there remains an interest from Sam’s to take advantage of messaging options provided by CTFA. Meeting is tentative, but intended for late season to review options for 2007. HEB - Below is some of the ad activity occurring here in the last two weeks. CA fruit is beginning to take a larger role. Nectarines also appeared on the front page during the reporting week but that ad has not yet been recorded by Adview and so was not available to include in this report. Fiesta Mart - Heading to Houston the week of July 24 to report on this very competitive market area. Kroger SW - Contact confirms we are good to go on Tasty Tunes, with POS arriving to stores the week of July 17. Major ad insertion will take place the week of July 24. Much hotter ad pricing as of late at this account. King Soopers - Significant plum promotion that was developed with much fanfare and input from supplier and CTFA breaks as we speak. Next report will share input from merchandiser. Scheduling market visit to Denver August 4. Note in picture the local deal is starting up with organic peaches from Colorado in ad. Super Target - In visit to Minneapolis last week, met with contact at Super Target who noted volumes on 2 lb. bags were exceeding expectations, while volumes on bulk fruit were average. Affiliation with Super Valu remains intact, albeit on a smaller scale as they move forward. Super Target is opening 30-40 new locations per year, and clearly targeting the upper end of the discounting spectrum. Contact noted their “corp policy” prevents them from taking advantage of typical board / commission resources, although he did show some interest of using some of the imagery from the Download Center to possibly enhance their internal in-store messaging concepts and efforts. Ad insertions are tough here, as they get limited space, and do limited ads (26 per year). Web was a thought, and we discussed working through some of the PR offerings as a consideration. Much work to be done here, as out-of-the-box thinking will be required. Kansas City Market - Hy-Vee visit to the Des Moines office location. Contact pleased with volumes overall, but discouraged at their inability to further develop white flesh portion of category. Indicated there needs to be clearer delineation at retail and thought packaging might play a part in this effort. Ad activity is strong – see here for recent ad insertion. 90-Day Challenge posters were of interest and contact asked that we send them what we could for placement in key retail locations. I sent 93, exhausting inventory on hand. AWG KC - visit with corporate procurement. Field buying consolidator confirmed their intent is indeed to move to a consolidated purchasing model. They intend to visit CA grower, packer, and marketing locations in next couple of weeks, with the intent to move all divisions into “program.” What that will be remains to be seen, but their combined operations supply well over 1,000 supermarket locations. Ball’s Food Stores - Hen House and Price Chopper banners showed as usual a lot of polish and flourish at retail. This customer continues to push the bar in Kansas City with first-class merchandise promoted aggressively. Showed strong interest in the Download Center and reviewed the site during the meeting to examine both content and how it works. Jewel-Osco - Feature pricing finally getting aggressive. Contact on vacation last week – will have further input on next report. Kroger Cincinnati, Great Lakes - Ad activity and pricing sharpening here as well. Some of them used PPN to differentiate themselves from supercenter competitors. Albertsons LLC - Denver and North Texas ads shown here. White peaches were on endcap display in two stores audited in Texas - $1.99 per lb. retail, but it appears most activity on PPN at this point is towards three- to four-day weekend sales. There remains much industry talk about what LLC Albertson’s divisions will become or what they in fact are, although it should be noted they’re being staffed both corporately and regionally with some accomplished industry veterans. They claim their intent is to reverse their four- to five-year share slide and pull these divisions out of red and into black.
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