Page 60 - Index

DES MOINES • ST.LOUIS • KANSAS CITY MARKET PROFILE
Produce arrives by tractor-trailers, 24-hours a day, seven days a week, from 49 states and more than 76 foreign countries.
CAPITALIZING ON TRENDS
Wholesalers harness regional and national trends, including the move to more packaged product, health awareness and increasing ethnic diversity. “ ere is increasing demand for pack- aged produce,” says C&C’s Conforti. “ is is driven by the grab-and-go need. At our sister company, processing facility Cool Creations, we’ve been fresh-cut processing for seven years. Demand continues to increase.”
Another trend is the growth of ethnic retail markets. St. Louis retailer Global Foods Market presents a perfect example of how retail serves the region’s diverse cultural populations. e region’s Latino community is growing. Conforti reports C&C has a dedicated buyer/salesperson for the Hispanic market. “He does the buying and selling for this segment and it’s become a good piece of business,” he says. “Logistically it makes sense for us to be primary suppliers for these ethnic markets because we can consoli- date everything for them.”
And it doesn’t stop there. “We’ve also had a tremendous in ux of Eastern Europeans,”
VMP’s Pupillo says. “We have the largest Bosnian population in the country. e growth of such demographic groups is positive for produce.”
Healthy eating also contributes to increasing business. “We are excited about research promoting the nutritional bene ts of a plant-based diet,” says Capital City’s Comito. “We want to be on the front lines in making America a healthier country. e challenge is getting the end-user to change life-long habits.”
EVOLVE OR DIE
Still, these wholesalers are challenged to improve. “We know that acting as a traditional wholesaler is a death sentence,” says Comito. “You must innovate, and you must provide value to your customer. If you are merely cross- docking produce, your days are numbered.”
DeMatteis of Des Moines Truck Brokers in Des Moines, IA, points out the value of exi- bilityandkeepingupwiththetimes.“Wehave become more and more technology driven,” he says. “We can o er better options determined from data than ever before. Our group is extremely focused on perishable transportation; we have been for 50 years and that will continue to be our focus moving forward.”
Wholesalers’ ability to react and the conve- nience they o er form their competitive formula. “We have an advantageous position in that we’re a one-stop shop,” says Conforti. “We have fresh-cut, our own ripening rooms, a repack facility and millions of dollars of fresh product on hand for short buys. ere isn’t any aspect of the produce business we’re not able to handle, and we can react quickly to changes.”
As a transportation provider, Des Moines Truck Brokers plays in volatile market spaces everyday.“Weareencouragingmorededicated lanes to help our customers drive down their spend,” says DeMatteis. “We are hearing more online purchasing, consolidation and nal mile opportunities being discussed.”
Pupillo emphasizes the importance of providing quality and specialized service to customers. “Some of my customers have tried to buy direct but found the investment required doesn’t pay o because they weren’t getting 100 percent what they needed,” he says.
Summertime Potato is evolving by transi- tioning from a repacker to a grower/packer/ shipper, according to Petersen. “We’re in our third year of growing potatoes in Iowa, and we’re o ering repack from other growing regions. We source locally and regionally.” pb
60 / AUGUST 2019 / PRODUCE BUSINESS