Jeff Shilling - Produce Business

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
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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.
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