"Eleven years ago, we didn't exist as an overseas importer and so far, this season, we are the largest importer of table grapes from Peru into the U.S.," says Carlos Bon, Senior Vice President of Sales at Divine Flavor, a U.S. marketer of table grapes. "First and foremost, we're farmers who want to grow the most flavorful grapes. As Grupo Alta, we started growing table grapes in Mexico a long time ago, based on the foundation of flavor. It wasn't until 2006 that we established a marketing company to sell our Mexican grown grapes in the U.S. market."
By coincidence Divine Flavor became involved in importing table grapes from other parts of the world. "It was 2010 and I worked for Grupo Alta where I was overseeing the R&D side at the time. We had a lot of programs in breeding, and I was participating in a trip to South Africa where I had an opportunity to see many grape varieties that were being tested." Many breeders had testing sites in the Hex River Valley and organized their own field days.
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Carlos Bon.
Passion for grapes
Instead of joining the tour bus, Bon rented a small car as it gave him the flexibility to combine the group tours with some satellite meetings. "It was my first time driving in South Africa and driving on the left side of the road was a true adventure." During that trip, he met an advisor from Chile, who introduced him to a gentleman from Chile, called Gonzalo Tocornal. "The advisor called us the two craziest and most passionate people in the grape industry and felt we had to meet each other." Bon and Tocornal started talking and instantly related because grapes were their hobby and passion. Gonzalo joined Bon in his little car and shared how he owned a grape variety that he didn't breed. It was found in the backyard of his father-in-law's house back in Chile and appeared to be a natural mutation of a seeded muscat variety. It mutated into a seedless variety and today, it is still called Muscat Beauty.
Tocornal suggested to bring some of his grapes from South America to the U.S. and just see what would happen. He was working with a grower partner in Piura, Peru as well as a partner in Ica, Peru and at the time, they were already sending fruit to the U.K. "He suggested to replicate this model in the U.S., and I loved his idea because this was an opportunity to represent a story and a grower," commented Bon. "I didn't just want to import stuff in hopes we could sell it. This was an opportunity to bring in product that has a place in the market, grown by people who share the same values and vision as us."
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Gonzalo Tocornal and Carlos Bon.
Flavor
It was a group effort and together, they started the project. Bon, Tocornal, and the owners of the two Peruvian farms visited five retailers in the U.S. in five days. They shared their idea of supplying them with the most flavorful fruit they know, coming from a single origin and a single brand. "We explained how we would bring in grapes from Chile, the two farms in Peru as well as from Grupo Alta's farms in Mexico and build a grape program together." The response was overwhelming. "By that time, Divine Flavor had already made a name for itself with grapes from Mexico and retailers trusted us tremendously," shared Bon. Thanks to their trust, Divine Flavor made its first step out of Mexico.
Mexico's grape season has a short window in spring. "Back then, the Mexican grape season was just a seven-week deal and retailers trusted us because we gave them a solution to provide high-quality grapes during a very tough time of year for the category." Adding supply from South America appeared to be such a success that demand exceeded the growers' supply. Together with the grower-partners in Peru and Tocornal's operations in Chile, more growers were identified that fit the mindset and commitment to flavor, quality and service. That's how the group was able to increase their supply base and develop a larger and more robust grape program, including organics, specialty grapes, and year-round supplies. "We focused on transition windows and having volume during times of the year when availability was limited."
Trust
In the first year, in 2015, 1,500 boxes were shipped to the U.S. markets. In 2016, this increased to 45,000 boxes. "This year, we will be doing a tad over seven million boxes from South America, making us the largest importer from Peru, and I am immensely proud of what we have accomplished in a fairly short amount of time. It's something we could have never achieved without the trust from our people, growers, and customers. The growers had a leap of faith in us, and simultaneously, we trusted them to do the right thing. Retailers trusted us in being committed to the same concept of flavor and quality they had come to know us for with our Mexican grapes. At the same time, we trusted the retailer that they would follow through and actually buy our fruit." Trust was the main ingredient in all of this.
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Performance
While trust is a key ingredient, ultimately, it's all about performance and commitment. Grapes are still an impulse product, and flavor is what drives repeat purchases. "We need to commit to what we promised, although it sometimes costs money," Bon admitted. Waiting for the right flavor costs money, because the price was higher when the fruit was immature. Farms that are owned by private equity firms in particular are looking for short-term return on investment. They are in a hurry to get their money back. Family growers, however, are thinking about their grandkids and about building generational wealth. "That mindset is required to be committed in the long run and that's the mindset we have." It's about transcendence. "Thanks to the commitment to quality and flavor, consumers come back for more, resulting in retailers paying a premium for our fruit."
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Muscat Beauty grapes.
Continuously evolving
"We're very much aware that if we're doing the exact same thing five years from now, we're not going to be the best company. We need to continue evolving when it comes to technology and varieties." There isn't a single variety that isn't being tested in different growing regions. With six test plots and a robust R&D department, the company is able to test different techniques, areas, types of soil, and rootstocks. This year, Divine Flavor will have the first crop of a very exciting red grape variety, called Applause™. It has a good window of opportunity at a time when there's not a lot of flavorful grapes available. Although it is a long-term investment, replanting into new varieties is important in offering the consumer's favorite grapes. This year, the company will make a strong jump out of traditional grapes like Flames and replace them with varieties like Ruby Rush®.
Extended windows
In addition to investing in new varieties, what has also contributed to offering high-flavor grapes, is an expansion into Jalisco, Mexico. Growing grapes in Jalisco is very difficult, but the advantage is a long window. "Last year, we shipped the last Autumncrisp grapes of the season from Jalicso around June 10 and this year, we're going to stretch it all the way to June 18." During this time frame, there are no other Autumncrisp® grapes available in the U.S. market. It certainly means taking a risk and it takes a lot of effort. "We're not stretching the season to just bring grapes into the U.S. We're stretching it because there is a need in the market to have a premium grape for that particular time frame where right now there isn't one. The bar keeps getting raised every year. If we don't get better, we're going to be left in the dust."
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Autumncrisp® grapes.
People are the drivers to success
The path to growth has been very motivating and encouraging. Bon is very grateful for what has been accomplished in a little over two decades, and he realizes strong values and a strong team are crucial. "People have been, and always will be, the driver that fuels our success. From the grower partners we work with and their farm workers, to our retail partners, each has played a vital role in our grape journey over the past 20 years. I'm incredibly proud of my sales team — Dennis Hay, Antonio Escobar, Sam Richardson, and Fernando Soberanes — for helping shape what our grape programs stand for today. I would also like to extend a special thank you to the entire Divine Flavor team for being such remarkable people to have by our side. Together, we look forward to continued growth, supplying our customers with exceptional-quality fruit, and continuing our grape story."
For more information:
Michael DuPuis
Divine Flavor
Tel: +1 (520) 281-8328
[email protected]
www.divineflavor.com
