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Ricardo M Sardáns, Latin American Relations – [email protected]
November, 2008
The Organic Food Consumer In The United States
Overview...
Introduction to POP
The Economy
Organic Consumption Trends
The Future
Creating a chain of support that linksgrowers, buyers, and
consumers in the enjoyment of high quality organic Produce,
Juices and More…
About...
Pacific Organic Produce (POP) was established in 1993 with anapple orchard in Hood River, Oregon.
15 years later, POP is the largest, most established and mostdiverse organic tree fruit marketer in North America.
We market fruit for thousands of differentgrowers, dozens of packing houses andshippers from Latin America and USA.
In 2004, we created five Purity.Organic Juices to increase the binreturn to the grower and add value & recognition to the Purity.Organic
label.
In 2007, we developed four Purity.Organic Functional Fruit Waters tocapture the low sugar/functional water market and to give produce
managers the ability to access the high volumeof a water product in their department.
About (cont)...
Strengths…
POP’s sales team has a combined 60 years of experience inORGANIC produce retail, marketing and sales.
Constant communication w/key partners & customers inCanada, Europe, Latin America, and all over the US keep usinformed and in front of emerging global and domestic trends.
“1 Stop-shopping” for all customers thanks to a great diversityof commodities (23) and varieties (115). Never out of season orout of touch!
Year round programs on highest demand products: Apples,Pears, Lemons, Oranges, Avocados, Mangoes, etc.
Strong, established relationships with our growers provideconsistent supply and the ability to plan strategically with ourcustomers.
Consolidation & Distribution…
10+ cold storage & repackaging facilities located on the Westand East Coasts, Southwest and Pacific Northwest help
guarantee the strength of the marketing chain and providecustomers with choices and flexibility.
POP has very strong business and commercial relationships not onlywith the largest organic retailers and distributors but also with massmarket and specialty stores located in the United States, Canada,Europe and Asia.
Pacific Organic Produce satisfies the needs of:
Supermarkets
Specialty Grocery & Cooperatives
Distributors
Food Service & Institutional
Clients & Markets…
USA: Apple, Pear, Cherry, Peach, Plum, Pluot, Aprium, Apricot, Nectarine,Orange, Lemon, Grapefruit, Pumello, Tangerine, Tangelo, Avocado, Berry,Grape, Mango, Pomegranate,Persimmon, and FingerlingPotato.Argentina: Apple, Pear,Cherry, Peach & Plum.Chile: Apple, Cherry,Avocado, Melon, Plum& Berry.Mexico: Avocado, Orange,Blackberry & Mango.Ecuador: Mango &PineappleBrazil: Mango & MelonPeru: Mango
Growers and Products...
The Economy…The economy is creating a food crisis
Today, average family of four spends $904 per month, up $80(2006)*
Food Costs are creating major concern about being able to putfood on the table
- Over the years, US consumers spend average of less than 10% of income on food. Today it is somewhere between 15% 25%
Food prices climbed 4% in 2007, the biggest annual increasesince 1990, and prices are projected to rise 4.5% to 5.5% in 2008USDA
*Sources: USDA/Iconoculture
5% 4%
19% 21%
51%
Not at all
Serious
2 3 4 Extremely
Serious
MARKET FACT
More than half of USHouseholds rate theseriousness of rising food prices
in terms of impact on the foodthey buy for their family asExtremely Serious. This is the
highest among women andpeople under 25.
Source: Produce Marketing Association,
Rising Food Prices – July 2008
The Economy (cont)...
Retailers are feeling the effects
Value-based grocery is doing well at the expense of supermarkets
ShoppedSupermarket in the last 30
days 86%down from
95% in 2005
ShoppedSupercenterlast 30 days
45% up from35% in 2005
73% Sayprice is “veryimportant” upfrom 62% in
2005
Source: Food Marketing Institute
The Economy (cont)...
Restaurants are feeling the effects
Eating habits
71% are cooking more and eating out less
58% are eating more leftovers
48% are eating less expensive restaurants
46% of those eating out less often are doing so becauserestaurant prices have gotten too high
Source: Business Week & Technomic
The Economy (cont)...
The Organic Marketplace
Organic Consumption
Nearly a quarter of American shoppers now buy organicproducts once a week up from 17% in 2000 Time Magazine
The Organic Consumption Trends…
Organic Food
Sales of Organic Foods will reach $18 billion in 2008 – up from$10 billion in 2003 USDA
Branded packaged goods account for 49.2%
All perishable goods account for 40%
Fresh vegetables/fruit = $2.5 billion Natural Marketing Institute
The Organic Consumption Trends (cont)…
Source: IRI/FreshLook
Organic Retail Performance
Total US Organic retail trends (04v07)
Organic Produce Dollar trend (+121%)
Organic Fruit, +253%Organic Vegetables, +69%
Organic Produce Volume trend (+104%)
Organic Fruit, +192%Organic Vegetables, +63%
Trading up to Healthy - 2009
In 2009: Avocados, Raw Almonds, Blueberries, andPomegranates take center stage as Super Foods
TODAY’S NEW CONSUMER CURRENCY: The new face ofaffluence. No longer limited to income, assets or material goods…increasingly consumer “wealth” is being assessed by HEALTH &WELLNESS
MARKET FACT
Health has become the new status
symbol for Americans across all age
groups, income brackets and
ethnicities…today we place even more
value on striving for good health than
we do on achieving financial and
professional success in our lives.
Anita Bose, senior vice president Business Wire
– 1.28.08
The Organic Consumption Trends (cont)…
1 (lowest pesticide load)Onions45 (best)1Avocado442Sweet Corn-Frozen437Pineapples429Mango4111Sweet Peas-Frozen4011Asparagus3914Kiwi3816Bananas3717Cabbage3618Broccoli3519Eggplant3421Papaya3324Blueberries3225Watermelon3130Sweet Potatoes3030Tomatoes2931Winter Squash2831Grapefruit2731Honeydew Melon2631Lemon2534Cantaloupe2437Mushrooms2338Tangerine2239Cauliflower2146Grapes-Domestic2046Oranges1946Plums1847Raspberries1752Cucumbers1653Hot Peppers1555Green Beans1457Carrots1358Potatoes1260Spinach1165Pears1068Grapes - Imported969Lettuce875Cherries783Strawberries684Nectarines585Celery486Sweet Bell Peppers396Apples2100 (highest pesticide load)Peaches1 (worst)SCOREFRUIT OR VEGGIERANK
The Organic Consumption Trends (cont)…Pesticides in Produce
The Future: Integrated Branding Approach...
Thank You !
