Weekly CFFA Merchandiser Report West and Western Canada Steve Hattendorf
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1 Weekly CFFA Merchandiser Report West and Western Canada Steve Hattendorf February, Weeks 7 and 8 (Feb ) General Market Overview Below are articles on 2 retailers who have been receiving a lot of attention the past few weeks. 1. The Cerebus buying which recently purchased the Supervalu Divisions and will now be called Albertsons LLC. They have selected the Division Presidents that will lead the stores it will acquire from Supervalu when the anticipated transaction closes in the third week in March Executives from the former Albertsons chain will be taking the reins for the acquired chain again, along with other companies. In addition, the company is also forming a new Northwest division office based in Portland, Oregon, which will oversee operations for stores in Northern Idaho, Oregon and Washington. This is good news because we have run programs in the past with the current Albertsons LLC Phoenix divisions. 2. Safeway is doing its best to eliminate print advertising in favor of more personalized digital ads. The fifth largest grocery player in North America spent $20 million on newspaper ads through November of "As people become more digital, there's an opportunity, which we're working hard at, [to] actually get out of the paper ads and make the ad itself personalized for every household," said Chairman- CEO Steve Burd during a fourth quarter earnings call with analysts. Mr. Burd highlighted the retailer's digital Just for U Program, an online loyalty program offering digital coupons and personalized deals. The program now counts 5.4 million U.S. households, or 45% of Safeway's sales base. That number could reach 55% by year's end and ultimately max out at about 65%, Mr. Burd said. Just for U will roll out in Canada later this year. Safeway operates nearly 1,700 stores in the U.S. and Canada and reported $44.2 billion in annual sales. This is a program we can customize on specific Chilean Fruit species. Dannie Timblin the Fruit Category Manager had mentioned the print reduction in our meeting, plus I talked with Jon Holder at the FPFC Luncheon this past week and he mentioned Raleys, 130 store chain in Sacramento is looking to eliminate print ads in the next 1-2 years. Chilean Fruit Overview The number of grapes ads doubled this week vs prior week. Ad prices continue to fluctuate: anywhere from.99lb (Northgate Markets, 34 store Hispanic chain in Anaheim, CA sales to $3.99lb. Greg Corrigan, Raleys,
2 VP of Produce mentioned at the FPFC luncheon he didn t feel comfortable about their current ad at $2.49lb, but noticed competitors advertising as high as $3.99lb. He also mentioned the small sizing on red grapes. We let him know grapes volume would be increasing in March. I noticed on store checks that grapes retailing at $3.99lb look tired and the movement was not there. Quality was much better on price ranges of $1.99lb to $2.99lb. where product was selling. Soft fruit item selection continued to vary by retailer. I visited a few stores in the San Francisco area and chains like Lunardis 8 store San Franciso chain, had a wide variety of Chilean Soft Fruit 1 st in line in the produce department. The produce clerk let me know soft fruit had had this great location for the past 3-4 weeks and movement has been very good. Plus Lunardis has been advertising Chilean Soft Fruit every week. Save Mart(Lucky), 240 store chain from Modesto, CA has good shelf space on soft fruit. Raleys is carrying the Chilean specialty Lemon Plum. On the other side there were a few poor store visits including Safeway (1700 stores, Pleasanton, CA) with only a few piece of soft fruit available and Mollie Stone (8 store Chain, San Francisco) retailed at a high retail of $4.49lb. The Mollie Stone Produce clerk mentioned they did not carry Chilean Cherries this season and had a lot of unhappy customers.
3 Mi Pueblo, 22 store Hispanic Chain in San Jose, CA, ran a great $1.98lb red grape and $2.48lb peach ad this past week. Their Produce Director requested our logo for the ad and IGA Marketplace, 42 store chain in Vancouver ran a large feature on flame seedless grapes, I resent our new logo to the Produce Director, plus Asian retailer.99 Ranch Market (37 store chain in Los Angeles) ran a $1.79lb. red grape ad.
4 Retail Visits/Contact Van Wholesale, Vancouver, BC, largest wholesaler in Vancouver. Raymond Tsang, Purchasing Director and recent attendee on the January 2013 Chilean Retailer trip. In regards to a promotion with T & T 20+stores and largest Asian Chain in Canada: As for T&T, I will wait a couple of weeks, when the price is better and we can do a promotion with them he is also working on potential direct shipments. Ralphs (Kroger Banner) 270 Stores, Southern CA, Brian Balladares, Produce Director: Quality is not at a level that I feel comfortable with. We will pass on the contest. 2 retailers below checked in this week regarding our TV commercials. They have seen the commercial running in their markets and communicated that they would be interested in our media tags. Bodega Latina Corp. Dba El Super, 39 Store Hispanic Chain in Los Angeles, CA I will be meeting with Beni Osses, Director of Purchasing, to discuss grapes and soft fruit promotions. Smart and Final, 187 stores chain in Commerce, CA, Will Miller, Director of Produce Purchasing noticed Ralphs and Stater TV ads in the Los Angeles Markets and would like to meet to discuss a program for Smart and Final. Promotions Scolaris, 17 store chain in Reno, Nevada. Set up display contest for the entire month of March. Items: CHILEAN GRAPES, PEACHES, NECTARINES, & PLUMS Timing: March 2012 Criteria: How to Win This Will be a Chilean Fruits Display contest featuring Chilean Fresh Fruit. Use Chilean Point of sale, Balloons, and tie- ins. Theme Pictures are a must, and need to be ed to Paul Dziedzic by March 22nd, Chilean Fruit will be advertised in the March 6 th Ad. The Markets, 17 store chain in Bellingham, Washington. Working on a display contest with Art Allbery the Product Director to start March 9 th. Will advertise 2 ads to tie in with the contest. Grocery Outlet, Berkely, CA, Northwest Divisions, 185 stores, contest starts this coming week February 25 thru March 17, will advertise all items to tie in with promo IGA Marketplace, 42 stores, Vancouver, BC, Chilean Summer Festival completed up on January 31st, waiting on results.
5 Raleys, 130 Stores, Sacramento, CA Banfi Wine Promotion: runs 2/27 thru 3/26, Raleys will have 2 weeks of CFFA TV running during the wine fruit cross promotion. Bashas (130 stores throughout Arizona) We ran a tagged ads for Bashas during the week of February 11 in Phoenix. Bashas tied in a fruit item in their February 13 th ad and is also featuring Chilean fruit in their EatSmart Newsletter, which has a circulation of 1.70 million. They have also reached out to CFFA to participate in the Basha Vendor Booth at the American Heart Associations s 21 st annual Phoenix Heart Walk on March 23. Giving out samples of Chilean grapes and stone fruit. Expected attendance of 15,000. Media Tie- Ins Week of 2/11: Los Angeles: Albertsons, Phoenix: Bashas, Denver: King Soopers(Kroger), Sacramento: Nugget Markets, Salt Lake City: Winco, San Francisco: Safeway, Seattle: Fred Meyer(Kroger), all tied in except King Sooper sin Denver. Nugget yellow plums $2.98lb Week of 2/18: Los Angeles: Stater Bros, 1.99lb yellow peaches and 2lbs/$5.00 Black Seedless Grapes and San Francisco: Raleys/Nob Hill, Red, Green and Black Grapes $2.49lb and 18 oz. Blueberries Tradeshows I attended the FPFC Nor Cal Luncheon on Thursday February 21 st in Pleasanton, CA with Karen. I talked to the following retailers: Safeway, 1700 Stores, Pleasanton, CA, Dannie Timblin, Category Manager, plus Davis Mochizuki, former fruit Category Manager, currently heading up Safeway Northwest Division, and Kristina Brite, Sales Analyst, SaveMart(Lucky and Food Maxx) 240 Stores, Modesto, CA, Greg Calistro VP of Produce,
6 Ed Corvelo, Produce Director and Rick Johnson, Food Maxx, Produce Director, Raleys, 130 stores, Sacramento, CA Greg Corrigan, VP of Produce, and Jon Holder, Sr. Produce Director, Grocery Outlet, 185 Stores, Berkeley, CA, Scott Olson, Produce Director, and Mollie Stone, 8 Stores San Francisco, Tom Wheeler, Produce Director. Most of the contacts would like the volume to pick up. Grocery Outlet was one of the chains that held off on a February contest promotion. Scott is excited that volume will pick up in March as he needs a big produce push to beat last year s sales.
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