RET ROS PECT IV E JEFF SHILLING, VICE PRESIDENT PROCUREMENT FOR FRESHPRO FOOD DISTRIBUTORS, REMINISCES ABOUT HIS EARLY DAYS IN PRODUCE AND SHARES ADVICE FOR FUTURE GENERATIONS. BY JODEAN ROBBINS W ith 42 years in produce, Shilling encountered significant shifts in the industry during his career. He started as a part-time clerk in Kings Food Markets in 1973 at the age of 16 during high school and remained in retail, holding positions such as produce manager, night manager and assistant store manager. After 10 years, he moved into the warehouse (owned by Kings at the time) as an assistant produce buyer, then produce buyer, head produce buyer, sales manager, and director of produce procurement. He is currently vice president procurement for FreshPro and responsible for overseeing all purchasing in all departments. Where were you in 1985? I was working in the warehouse as produce buyer and assisting as sales manager for Kings. My responsibilities included produce purchasing and store merchandising, in addition to managing retail pricing and advertising programs for the stores. What was the produce department like in 1985? We had about 250 regular SKUs in the produce department — almost all of which were fresh. I remember a few years later, we remodeled a store, and in effort to show our variety, we brought in around 450 items, which was unheard of at that time! In the mid 1980s, just about everything still had a season. When the season was over, we went to the next item. Imported produce was beginning to become popular around then, with products like colored peppers from Holland and Jet Fresh peaches and nectarines from Chile. There was no marketing of organic produce in our supermarkets until the Alar scare of the late 80s. Whatever fresh-cut products were in the department were cut in the store. Strawberries were still sold in 24 / APRIL 2016 / PRODUCE BUSINESS When did things start to change, and what were the drivers? In my opinion, the single event with the greatest impact on produce was the introduction of the Jane Fonda workout videos in 1982. Suddenly, women (and eventually men) had a new interest in exercise and eating healthy. This caused an explosion in the produce industry, as everyone wanted to add fresh fruits and vegetables to their diet. Produce department cut-out percents [the percentage of produce sales compared to total store sales] went from the low teens to the high teens — even low 20s in some stores. Jeff Shilling loose pints. There were no packaged salads to speak of; in fact, if something was packaged, it usually meant it was being reduced for quick sale. Loose bulk displays of product were synonymous with freshness. We had our own product identification numbers for the cashiers to identify product with at the front end. PLU numbers and UPC numbers were just being introduced in produce. How was the overall retail environment? This was probably the most exciting time in the produce business. Fresh produce was in and we could do no wrong. Just pile it high and watch it fly! Tonnage was constantly increasing and new items were arriving all the time. Farmers were starting to pay attention to flavor, rather than how long the product would hold in a cooler. Improvements in trucking and refrigeration helped get product to the destination faster and in better condition. The increase in popularity of air containers meant more imported produce from overseas could be introduced to the mix. What were some if the biggest innovations in the industry during the past 30 years? Starting in the early 80s, we saw the introduction of salad bars, juice machines, pineapple corers, and we even had pea shuckers and sprout growers in some departments. Educating the consumer on how to prepare fresh produce and the nutritional value of fresh produce was starting to become popular. We had produce “Tip Tapes” in the departments. They were a looped VHS tape — put out by United Fresh Produce Association — to help educate consumers on specific products. Recipe cards were marketed by several companies and point-of-sale signs were becoming more informative. As we entered the 90s, organics became a hot button for us. While few supermarket chains carried organic produce in the early 90s, just about everyone had some organic presentation by the end of the decade. Packaged produce began to become more popular with packaged salads increasingly replacing fresh salad sales. Produce variety went wild in the 90s with new items constantly introduced. Companies like Frieda’s helped retailers sell these new products to the consumer with informative and attractive packaging. Flavor was key to repeat sales, and growers were finally planting only flavorful varieties. How would you describe the produce department today? After the turn of the century, it seemed nothing had a beginning or end to the season. More variations of the same items were introduced, which cut into available shelf space. In just about every chain, this made the once overflowing displays turn into small, neat cubbyholes requiring constant attention to keep them stocked. Once bountiful looking departments were replaced with departments appearing to be more concerned with the number of items carried rather than the number of total cases sold. As supermarket family owners were replaced with corporate and financial owners, it became more about margins and less about sales. What was the greatest lesson you learned about retailing during the past 30 years? Without a doubt, one has to love this business to be successful in it. Produce is a living, breathing commodity. Every day is as different as it is exciting. It’s really simple too: take care of the product and the product will take (L-R) Jeff Shilling and Harry Taylor (now deseased) photographed in a Kings sometime in the 1980s showing off the “Tip Tapes” — looped VHS tapes distributed by United Fresh Produce Association — to help educate consumers on specific products. care of the sales. If you do what is right for the product, it will sell itself. Cold items need to be kept cold, wet needs to be kept wet, dry needs to be kept dry. It’s not that hard. It drives me crazy when I see apples displayed out of refrigeration and pears in refrigeration. It should be the other way around if you really want to do what’s best for the product. What will drive the industry in the next 10 to 20 years? If I knew this answer, I’d invest in it and retire. However, the ridiculous demand for high gross-profit margins needs to be replaced with a push for increased tonnage. If the demand for fresh produce does not keep increasing, there is no incentive for young people to get into the farming business. Without new farmers, our fresh food supply will be forced to rely more on imported produce. This negative spiral can still be controlled, but there needs to be a conscious effort to do so. At the same time, the retail environment needs to attract “career” produce people, not just those looking for a weekly paycheck. What are the challenges holding us back? Government over-regulation continues to interfere with industry growth. We seem to be more concerned with fresh produce safety than we are with fresh produce consumption. Obesity is a serious problem, yet the answer is staring us in the face. Increase fresh fruit and vegetable consumption and the obesity problem will start to go away. What are your thoughts on choosing produce as a career today? I don’t know if there are enough financial or motivational incentives for young people to enter the produce industry, or the supermarket industry in general. Due to the need for companies to constantly show an improved bottomline, full-time positions are hard to come by as they have given way to part-time. It is difficult to make this a career if you are only working part-time hours. What advice would you give young retailers entering the produce industry? Know your product, and know your customers. Do what is right for your product and give the customers what they want. PRODUCE BUSINESS / APRIL 2016 / 25
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