US: Produce important as C.H. Robinson seeks growth
The company is looking for growth in such items as apples and oranges.
It has promised an annual growth of around 15%, but last year only reached 11/5%, sparking fears about its future prospects.
Fruit and vegetables will not make up the full answer for the company, though they definitely have a part to play.
"Produce is one of the biggest reasons, besides location, that people pick a food store," said Drew Schwartzhoff, director of sourcing marketing at C.H. Robinson. "Our independent research shows that half of consumers find branding of produce pretty important."
Among Robinson's customers in the Twin Cities is Supervalu, which markets Robinson-delivered produce brands through its Cub Foods stores.
Robinson's produce strategy is three-pronged: It will sell grocers national name-brand produce, provide private-label produce with the grocer's name on it or just sell generic produce. Robinson says grocery retailers opt for different approaches: traditional grocers may see national name brands as a way to draw customers, while discount stores may opt for the bargain-priced generic produce.
Robinson started experimenting with branded produce in 1998 when it signed an exclusive agreement for the sale of apples under the Mott brand name.
Since then, Robinson's brand-name marketing has been expanded to cover more kinds of produce. Today, the company's brands include sweet corn (Sweet Elite), personal watermelons (Melon Up) and Southern vegetables (Glory Collard Greens.)
Robinson is far more involved with its branded fruit than one would guess from its obvious role as the company that delivers apples and oranges to stores.
"We start back in the early side of the supply chain, working with growers to determine what is needed and how to maximize the opportunity," Schwartzhoff said. "We're looking for new varieties at the seed end, working on specific sizing or color characteristics and making sure the produce is packed to order and has the shortest supply chain to reach our customers and consumers."
Source: startribune.com
