In her State of the Industry, Cathy Burns pointed out that we should fight the urge to wait for the “new normal” and instead create the “new extraordinary.” The Center for Growing Talent’s general session, Women’s Fresh Perspectives -Taking a Seat at the Table, will be an open and honest discussion about one such way we can work to make that a possibility. While there has been a national and global conversation on the importance of diversity and inclusion for many years, 2020 has seen a growing sense of urgency and a shared sense of responsibility to model this in our business environment.

This session will welcome back Johnny C. Taylor Jr., CEO and President of the Society for Human Resource Management (SHRM), as the moderator of a conversation with two powerful leaders: Sara Menker, CEO of GroIntelligence, and Beth Newlands Campbell, EVP & president of Supermarket and Market District of Giant Eagle, Inc. These leaders will share their own personal stories of their career paths, the organizational cultures that have influenced them, and tangible ways we can create a more inclusive environment.

Taylor will navigate the conversation and highlight where we’ve been successful in building diverse teams, what new challenges that has introduced, and how the pandemic has changed what our workforce needs to be successful. Tune in for this session to hear how the conversation and the challenge are evolving; for example, as we build more diverse workforces, how do we create a culture of inclusion to ensure that we can retain this talent as well?

Our industry has always relied on expertise to guide us, but we have found ourselves in a time when we don’t have expertise to count on. In this time of relentless change, in the absence of experience and tested knowledge, what can we use to not only survive this time, but thrive? Sally Dominguez from Singularity University, a collective of world-class experts, will share the 10X Mindset to help navigate this period of exponential change.

Dominguez will take a close look not just on what has changed in the face of COVID-19, but what we must do to properly respond, adapt and thrive. It has been said multiple times that the business rules have changed and what used to work, may not be the recipe for success in today’s world. Dominguez reframes the current environment as one of great challenge, to create multiple opportunities and exponential growth.

The session will be more than theory, asking attendees to engage in an exercise to go outside our traditional thinking processes and experiment with adventurous thinking. Dominguez will connect this thinking to action, helping our industry to connect further to the focus on purpose that has been a theme throughout the Fresh Summit week.

The highlights from this session will be updated once the session has ended.

This time last year, we were discussing how consumers knew the healthiest options but often chose less healthy options that appealed to emotional connections. With the global pandemic and increased attention on personal health, we’re seeing that many consumers are looking to the products they purchase to contribute to their overall wellness. This includes food – where fresh fruits and vegetables are uniquely positioned to capitalize on this heightened focus on health. It also includes the products we surround ourselves with and research is showing the power of floral to increase our moods, alleviate anxiety and even speed up healing.

In this session, experts Dr. William Li, of the Angiogenesis Foundation, and Dr. Charlie Hall, of Texas A&M University, both will address the research that supports the physical, emotional and psychological impacts of our industry products on consumers. Dan’l Mackey Almy, of DMA Solutions and Jiunn Shih of Zespri International will join to provide insights into how to turn this research into effective marketing strategies to help grow demand and grow a healthier world.

A full recap of the session will be posted when the session broadcast finishes.

Many of the challenges arising during the global pandemic are not new. In many cases, these challenges have been with us for some time and are only becoming more amplified, magnified, or otherwise more disruptive in the wake of the pandemic.

While our challenges may not all be new, the need for meaningful, and thoughtful solutions is greater than ever. The General Session: Inspirational Ways to Grow a Healthier World, feature two remarkable leaders who have identified immense challenges facing humanity and applied sustainable and effective solutions that have inspired great change.

Doc Hendley, founder of Wine to Water, will share his personal story about his journey from tending bar in Raleigh, North Carolina to living in Darfur, Sudan installing water systems for victims of the government-supported genocide. His organization has grown to include five international offices in the U.S., Nepal, the Dominican Republic, Colombia, and Tanzania where they are not only looking to provide clean drinking water, but also the technology that can empower communities to solve their own challenges.

Keller Rinaudo, CEO of Zipline, will share the inspiration behind his company which aimed to be the first logistics system to serve all people equally. Logistics, Rinaudo points out, is linked to countless deaths in many countries, including Rwanda, where the organization began. After years of innovation, iteration, and optimization, Rinaudo’s organization has scaled beyond any expectations to deliver 75% of the national blood supply in Rwanda using autonomous drone aircraft. Zipline has expanded to Ghana, and in response to challenges caused by the global pandemic, to the United States as well. Rinaudo will speak about how their model generates growth, profit, and technological advancements for countries to address fundamental problems they’ve faced for years.

The preview will be updated with a recap of the session once the presentation broadcast is finished.

 “I have no desire to go back to normal…I’m far more interested into a new extraordinary.”

PMA’s Cathy Burns launched Fresh Summit 2020 with a virtual State of the Industry (SOI), with perspectives from industry members who shared their experiences from the past several months, and where the industry was before COVID-19: working together in the office, traveling and networking in person, and growing our business operations with efficiency in mind. It was business as usual, but business was good.

“If we really want to grow a healthier world, we must take an honest look and resist the urge to think it was all great.” 

Burns reminds us that even in the old normal, there was work to be done. We were facing food safety issues with distressing frequency, contending with weather events, peak markets and short supply. Our industry is built on a constant flow of perishable product and the pandemic caused us to pause, postpone, and suddenly accelerate at a rate our industry has never experienced before. Burns pointed out that while foodservice shut down operations across the world, in the U.S. we saw two of the biggest sales weeks in the history of grocery retailing.

The pandemic led to shut downs across industries, but it also opened the door to incredible growth in other channels including e-commerce. Burns explains how businesses who had invested in e-commerce were able to reap rewards for existing online infrastructure while those who had to adapt on the fly struggled. As we all learned more about COVID-19, early fears centered around the safety of fresh produce evaporated and we’ve seen this impact in the increase of online sales of produce over the summer. Floral, which is seeing record sales as people explore ways to beautify their homes (which in some cases is also their workplace and school), is a place of opportunity for those looking to amplify their online sales.

“As alluring as the old normal was, I ask you: was that normal really good enough?”

In light of the difficulties that we faced in the immediate chaos that followed the immediate shutdowns, Burns recognized the one important word that rose above the noise: Essential. Finally, our products and all of the people involved in growing, shipping, making those products available to consumers became essential to life, health and our future. The newfound respect for those of our frontline workers helping to keep our food moving from our fields to our forks has been long overdue, but incredibly well deserved.

There was work to be done and that work was sometimes dangerous, and in many cases hadn’t been done before. Some companies, as Burns pointed out, embraced the power of the pivot by stepping in to address needs that may not otherwise be within their scope. For example, Dyson, the vacuum company, utilized their knowledge of air filtration and created ventilators. The power of the pivot, as Burns described, was also embraced by many of our industry members as well.

The industry created new direct-to-consumer solutions shipping boxes of food from farm to families. Countless others saw the growing need to address hunger in their communities and stepped into the breach with a variety of solutions. Burns highlighted the work by PMA strategic partner Brighter Bites, which shifted their produce delivery to alternate locations when schools closed and created an innovative partnership with H.E.B. to provide 10,000 of their families with almost $600,000 in vouchers to continue their access to produce.

“Together we will solve the gap between produce access and produce excess.”

Burns celebrated the new partnerships that grew out of necessity and creativity, proving that collaboration is the new currency. There are countless examples, and Burns described a few, where businesses are creating new partnerships to bring new value to their consumers. Burns recalled a statement from former PMA Board Chair John Oxford during his Fresh Summit remarks years before. “PMA,” he said, “is for the members, by the members.”

While this has always been true, this year, we have leaned into that and members have leaned back. From “Members Helping Members” events and resources to Virtual Town Halls and Interviews With the Experts – Burns recalled the collaboration and agility that PMA members showed to provide much needed insights, experiences, and learnings to other members of our community in a time when it was needed most.

“Purpose is the new strategy – the power that brings people together and embeds meaning into every aspect of the work every day.” 

Burns tapped into the data and research revolving around ‘purpose’ as a guiding north star for organizations. She identified the business impact of being a purpose driven organization which includes higher performance, more engaged employees and more. As an industry with such an important role in creating a healthy world, we have a special competitive advantage that we cannot take for granted. Not only must we consider the power of our purpose as an industry, but also how we can engage, elevate and create a diverse and inclusive community of talent that can enhance and advance our industry.

As we get to know how diverse and unique our talent is, we will also want to consider our unique and diverse consumers with the rise of personalized nutrition. The value for shoppers, who are beginning to see food as medicine, has endless potential if we can continue to take ownership of the message that produce and floral have a role in our personal health and wellness.

“We must dwell on what is possible, not what has worked in the past.”

Burns completed her SOI with a special announcement that PMA will be working closely with partners at the United Nation to amplify activities around a Year of Fruits and Vegetables – a global initiative to celebrate education around the role of fruits and vegetables in the health of those around the world. The convergence of consumer interest and the supporting science about how our products can improve the health of the human body and spirit has given us all a once in a lifetime moment to impact our consumers. Burns stressed the importance of our role as an industry to step up for this moment to be relentless in the pursuit of what is possible and create the new extraordinary.

“Because of us: The world is fed, the world survives, and the world finds joy.”

Retail experts discussed the consumer data collected over the past year and illuminated consumer behavior, identified current trends, and addressed how the industry can meet consumer needs going forward.

Jonna Parker, Principal at IRI Fresh Center of Excellence, dove right into the data, kicking off the session by setting the foundation for the conversation. She highlighted that in the beginning of the pandemic, we saw a boost in basket size, where people were making fewer trips and stocking up for the unknown. That shopping behavior evolved and while they maintained fewer trips, consumers were spending more each time and focused on exactly what they needed to make their meals at home. Parker mentions that this and other factors have led to sales in all areas coming in above 2019 levels for the majority of the past seven months.

In addition to talking about what people were buying, Parker addressed where and how people were buying as well. She recognized that while we were seeing a trend with specialty and discount grocers eroding sales for traditional retailers leading up to the pandemic, consumers making fewer and more focused shopping trips reversed this trend over 2020. People were not just buying in-person, Parker mentioned, pointing out that e-commerce has exploded and while fresh initially lagged, it has been growing throughout the pandemic.

The data tells us that it is critical for retailers to get produce right. Produce, especially vegetables, are growing in depth, in interest level from consumers, and in spend. As the demand rises, it’s important for the industry to take advantage of the captive audience and position their products in a way that connects with consumer wants.

Anne-Marie Roerink, Principal at 210 Analytics, provided another layer to the data, giving an inside look at key trends in consumer experiences, behaviors, and perspectives driving how we consume fruits and vegetables. Roerink started with the increase in meal occasions that consumers are preparing each day. Pre-COVID, breakfast and lunch were often on-the-go but as many of us have begun working at home we are preparing more meals. Helping to market and educate how consumers can use produce in all meal occasions can make a huge impact on our share of the basket.

Roerink echoed Parker’s initial points on the interest in the frozen category. While the major concern that frozen addresses is shelf-life, fresh can participate in this messaging as well. Roerink shared examples where retailers and growers were showing how consumers can ripen bananas or avocados or how they can extend their shelf-life as well.

Citrus has benefited from perceptions on shelf-life, but also has benefited from a perception that they boost immunity. Roerink’s third trend showcased examples about successful ways we’re communicating the health benefits of our products. Articulating and reinforcing the connection to health and immunity is powerful in today’s environment as consumers have a heightened level of concern and awareness about their own personal health.

This concern for personal health and safety has also been a force behind a major growth in e-commerce. Similar to Parker’s commentary on trips and spending, Roerink identified that new groups were moving to e-commerce, spending more than average, and returning to the online platform. A successful e-commerce experience could build consumer loyalty. Roerink also pointed out that, traditionally, produce is the No. 1 reason why consumers choose one store over another. Capitalizing on this in-store is necessary, but as shoppers move online, it’s essential that this experience translates to online shopping.

Lastly, Roerink named one of the most important trends facing the U.S. market specifically. As the pandemic has caused great economic disruption leading to unemployment rates skyrocketing, it’s important to address price and value to ensure that consumers can choose our products when they’re on their shopping trips.

PMA’s retail expert and vice president, Joe Watson and Paul Kneeland, vice president of Fresh Food operations at Gelson’s Markets, joined the conversation to provide in-store experience to give life to the data. The questions spanned a great variety of topics including how we would fare if we faced another strict lockdown this winter to how we can pivot to take advantage of produce snacking trends. The panelists even address how the industry can be aware of trends and restrictions around gatherings going into the holidays. While we may not see the same success with party-sized fruit and vegetable trays, smaller versions may be just right for family get-togethers.

The panelists addressed that while the pandemic evolved, merchandising fell away in the beginning. Kneeland pointed out that there was no time to merchandise as the products were off the shelves within hours of stocking them. However, as we have more time, we can see the rise of merchandising and there is a great opportunity now to be thoughtful to help consumers address concerns like meal fatigue.

Fatigue is an unfortunately consistent consumer experience right now and it’s connecting to the increase in frozen and fresh-cut products. Convenience is more than just saving time in preparation but also decreasing food waste and saving time in planning and shopping. The shopping experience came back to the forefront of the conversation, with panelists recognizing that if the consumer experience isn’t well developed, people can have trouble finding new products. It also means that we can miss out on the ever-important impulse buys. Floral, traditionally an impulse buy, has seen sales rise in-store as people seek out products to beautify their home but can be a lost opportunity online if not positioned well.

“Value is in the eye of the beholder.”

Parker helped to close the session reminding that price is not the only important part of the value equation that drives consumer behavior. Our products are valuable to consumers when considering their health and when it comes to completing or creating meals. Tapping into this, and as Joe Watson mentioned in closing, knowing who we are and who are customers are will allow us to provide the experience and the products our customers want and need.

This session and all other concurrent sessions are available on the Fresh Summit platform on-demand within 24 hours of their original broadcast. This content will be available to all registered attendees through November 13.

CEO de PMA, Cathy Burns en inauguración del PMA Fresh Summit 2020
Un trabajo unido de toda la industria y con propósito claro de las empresas, puede ayudar al “nuevo extraordinario”

“El cambio es lo que nos pasa, pero la transformación es lo que sucede gracias a nosotros, y gracias a nosotros el mundo se alimenta. No se detengan y únanse al resto de la industria para crear un nuevo extraordinario. Creo firmemente en la colaboración, ésta será la nueva moneda”.

“El propósito es la nueva estrategia; el poder que una a las personas y otorga significado a cada aspecto del trabajo todos los días. Tiene más peso e intención hoy que hace 7-8 meses. Complementa nuestra razón colectiva y compromiso con los productos frescos”.

Son dos citas de Cathy Burns, CEO de PMA en el discurso inaugural, este martes 13 de octubre, de PMA Fresh Summit 2020, evento virtual que reúne a miles de representantes de la industria global de frutas, verduras y flores. Son dos frases que resumen algunas de sus ideas centrales de “cooperación y unidad de los miembros de la cadena alimenticia” y a “la importancia del propósito” como una forma de enfrentar de mejor manera las necesidades de los consumidores finales.

No en vano, agrega, lo que hemos vivido los últimos meses entrega oportunidades para afrontar de manera distinta el futuro y lanza la pregunta: ¿Era ese normal previo a la pandemia suficientemente bueno?

Profundizando en el tema de la cooperación, agrega que en este tiempo “se están formando nuevas asociaciones entre personas que nunca lo creyeron posible en la etapa previa a Covid-19. Algunos minoristas dieron la bienvenida a restoranes comunitarios en sus tiendas para ayudarlos en el servicio de alimentos que venía con dificultades. Hubo nuevos vínculos entre operaciones de cultivo o de restoranes con instalaciones agrícolas urbanas. Las reglas del negocio han cambiado drásticamente y no importa dónde uno se encuentre en la cadena de suministro, estamos todos juntos en esto”.

Respecto de sus dichos en torno al propósito, añade que éste es clave en tiempos en que las personas han sufrido un transtorno físico, mental, emocional, e incluso, espiritual. “El propósito puede ayudar a dar un sentido de pertenencia y seguridad; es una herramienta poderosa para alinear gente con sus recursos y alcanzar resultados estratégicos.”

Algunos estudios al respecto: Un informe de Deloitte identificó el propósito como un área clave en donde los empleadores deben enfocarse los próximos 12-18 meses. La Universidad de Harvard indica que las empresas impulsadas por un propósito superan a las que no lo tienen por un 5 a 7% en participación de mercado. Y PwC indica que el 73% de los empleados que trabajan en una empresa que tiene un propósito están comprometidos con ella en comparación con solo el 23% de aquellas empresas que no lo hacen.

Mundo de héroes

También hizo referencia a los “héroes” que están presentes en toda la cadena alimenticia, dentro y fuera de PMA; desde granjeros y transportistas hasta cajeros y empacadores de supermercados, quienes se han convertido en la primera línea en los meses de pandemia. Destacó a empresas que han colocado refrigeradores con frutas frescas en zonas pobres de manera gratuita, han donado productos frescos a los bancos de alimentos y otras que facilitan frutas frescas con sistemas de entrega online a domicilio, gratuito para sectores pobres.

Esta industria dio un paso adelante cuando el mundo más lo necesitaba, para proporcionar productos frescos que ayudaron a aumentar la inmunidad. Tras semanas de encierro, “sucedió algo notable, en donde nuestros productos fueron reconocidos como esenciales para la vida, la salud y nuestro futuro”.

“Juntos resolveremos la brecha entre el acceso a los productos y el exceso de productos, no podemos permitir el hambre en un mundo donde existe abundancia de frutas y verduras frescas”, añade Cathy Burns.

Boom del eCommerce

Sus palabras también hicieron referencia al peak alcanzado el comercio electrónico.

“En un año lleno de cambios inesperados en la forma en que hacemos negocios entre nosotros y con los consumidores, hemos sido testigos de un auge increíble en el crecimiento del comercio electrónico de comestibles. Los minoristas que invirtieron en su experiencia de comercio electrónico están cosechando los beneficios de los consumidores impulsados por preocupaciones de conveniencia y seguridad. Desde que comenzó la pandemia, han aumentado el número de compradores de comestibles en línea en un 30% a nivel mundial”.

Si bien los bocadillos y las comidas reconfortantes experimentaron un aumento en las ventas, las frutas y verduras frescas también se beneficiaron de un aumento en los compradores en cuarentena. El foodservice también continúa avanzando en recuperación, con algunos operadores desdibujando las fronteras con los supermercados tradicionales al vender alimentos básicos y suministros a sus clientes.

Desde el cambio climático y los disturbios políticos, hasta la salud y las preferencias de los consumidores, hay muchos factores externos que tienen un impacto en el mercado global de productos frescos.

“Estos factores pueden generar nuevas oportunidades o crear barreras para los negocios; por ello, es necesario comprender mejor lo que está sucediendo en todo el mundo, para tener las respuestas adecuadas a los factores externos en beneficio de su empresa”, dice Nancy Tucker, Vicepresidente Regional Global de PMA y quien moderó uno de los paneles de PMA Fresh Summit 2020, en torno a los “Desafíos y oportunidades internacionales para los productos frescos”.

Fernando Gómez Molina, Gerente General de Proexport España señala que en todas partes -incluyendo la diversidad que presenta Europa- se observan características comunes en mercados y sus consumidores, tendencias que pueden ser temporales, pero quizás algunas permanezcan por un largo tiempo, como por ejemplo, la preferencia por productos locales.

De partida, existe una mayor preocupación por la salud, lo que explica el porqué los supermercados han estado vendiendo más frutas y verduras, reforzándose mucho. También -dice- la gente está más cauta con sus finanzas personales, y eso puede impactar en los niveles de gasto, aunque en contraste “por fin está despegando la compra online de productos frescos, que hasta antes de la pandemia estaba rezagada respecto de otro tipo de productos”.

Entre las recomendaciones señaladas por Gómez Molina, parte expresando que hay que estar preparados por una presión por menores precios, y es así como los productores deben defender el valor de sus producciones, siendo clave “enfatizar los mensajes que comuniquen los beneficios de las frutas y vegetales para la salud de las personas. En tal sentido, los empaques y las etiquetas cumplen un rol muy importante”.

Por su parte, Nicolás Moller, vicepresidente ejecutivo de Hortifrut señala que la pandemia reveló la existencia de algunas megaoportunidades:
1. Sustentabilidad: Los consumidores quieren soluciones alimentarias que den respuesta a los mayores desafíos que impone la crisis ambiental. Por ello están seleccionando las soluciones más eficientes del mercado y castigan aquellas ineficientes. “La industria probablemente signifique un 25% de las emisiones globales de CO2, ese es un desafío que se debe enfrentar”, dice.

2. Tecnología y genética: Hay que incorporar más soluciones tecnológicas en cada área del negocio. “La genética es un punto esencial en la búsqueda de productos que puedan dar respuesta y enfrentar problemas como la sequía”, añade Moller.

3. Relación con el sector financiero: Como nunca antes, están llegando nuevos recursos a esta industria, pues se ha demostrado los buenos retornos que para los accionistas tienen las empresas agrícolas, todo lo cual, seguirá creciendo en un mercado de US$ 5 trillones en lo que a alimentos y agroindustria se refiere. “La alimentación y la agroindustria son negocios masivos a nivel mundial, y la necesidad de alimentar al mundo seguirá creciendo. Para responder adecuadamente a eso, se necesitan inversionistas dispuestos a apostar por este sector”.

Y por último, dice el ejecutivo, el mundo parece que está enloqueciendo absolutamente por los berries, por lo que ya están preparados para enfrentar el desafío.

Finalmente, Patrick Vizzone, de ANZ Banking Group, quien desde Hong Kong asesora en el área agrícola, expresa que al menos en China, la economía está de regreso debido a un fuerte repunte en el consumo y la demanda, así como un alza continua en el sector de servicios, respaldado por medidas fiscales bastante fuertes y proactivas del gobierno que apuntan a apoyar industrias clave. El ejemplo de China es decidor, en donde se espera un crecimiento de 2,1% para este año y de 8,8% en 2021.

En esta nueva normalidad existe un alto riesgo del proteccionismo y por ello recomienda diversificación de los orígenes. Frente a crecientes riesgos geopolíticos (alza de tarifas, por ejemplo) y riesgos de inestabilidad, existen grandes oportunidades, y el delta tendrá que ver con la administración que se realice y las elecciones que se tomen en los próximos meses. Aquí se torna clave una política país en desperdicio de alimentos y conservación de alimentos, desafíos que enfrenta el ámbito agroalimentario pero particularmente el de producto fresco dada la cantidad de pérdidas de cosecha que vemos en todo el mundo y en China.