Blog

This blog is designed to thoughtfully, respectfully and candidly address important issues impacting the produce business in the 21st Century. Although there are plenty of valuable periodicals in print and on-line already that cover many of these topics – this blog is meant to be different.

Our business has changed dramatically in the past 25 years. Not just the pace but the complexity. We need a safe space where we can openly discuss contrasting views about how best to address the challenges and opportunities that produce companies and our entire industry are now facing. This blog will attempt to provide that space. I do not claim to have all the answers. I do intend to begin by asking important questions. Join me and share your thoughts as well.

-Craig A. Padover / CAP Marketing and Sales. October 1, 2021

How much impact will New York City’s first vegan Mayor, Eric Adams have on fruit and vegetable consumption in the big Apple? He has promised to use public monies to encourage a healthier plant-based diet. The city spends over $1 billion annually for food in schools, institutions and social services. Adams has also promised to establish Lifestyle Medicine Programs in all 5 boroughs.

On the federal level, effective October 1, 2021, the Supplemental Nutrition Assistance Program (SNAP – formerly known as food stamps)  increased by 15%. Over 1.8 million NYC residents receive this assistance – nearly half are children. This program is implemented on a statewide basis and eligibility requirements can vary according to local guidelines. Fresh fruits and vegetables, dairy products, breads and cereal, and protein sources are all acceptable purchases covered by SNAP.  Monthly benefits depend on total family income.      

In a recently completed study commissioned by Produce for Better Health in 2020, despite an 11 % increase in overall fresh produce sales, Americans eat less fresh fruits and vegetables every year. In fact, most Americans eat less than one fresh fruit and vegetable every day. Almost 25% do not consume any fresh produce the entire week. So although produce dollar sales are up, per capita consumption remains stubbornly low. A minority of Americans comprise the heavy users of fresh produce. 

Stanford sociologist and researcher Dr. Priya Fielding Singh in her groundbreaking new book How the Other Half Eats, The Untold Story of Food Inequality in America outlines in stunning detail the many factors that determine how what and why families eat. Financial access and availability is important but so is the attitude we have toward the food we eat. Our identities are shaped by our food. Singh outlines the complex reasons why so many people in America are unhealthy.

To change this situation many organizations have been launched that encourage more whole foods and a plant-based diet.  Plant-Powered Metro New York is an independent organization that partners with community leaders and the medical community. It was formed following the 2015 documentary Plant Pure Nation. NYC Health and Hospitals Plant-Based Lifestyle and Medicine Program offers a holistic approach to treating diabetes, high blood pressure, heart disease, and obesity. Dr. Michelle McMacken is the director.  

Green Guerrillas, Green Thumb NYC, Grow NYC  and local Community Supported Agriculture (CSA’s). have all helped to connect New Yorkers with nature by building community gardens and establishing direct relationships with local farms. Urban vertical and rooftop companies like Bowery Farming, Aerofarms, and Brooklyn Grange are also increasing their footprint and production in metropolitan New York.  

                             

How is fresh produce currently being sold in metro New York?

Stefanie Katzman, Executive Vice President of  Katzman Produce in the Hunts Point Market appreciates the value these initiatives have in changing New Yorkers to a healthier plant-based diet. “Early intervention can teach children to eat properly and set them up for success – but it will take time”. Like every other business in the short term, Katzman’s retail and foodservice mix was impacted by the Covid 19 Pandemic. It has recently stabilized due to outdoor dining and increased vaccination rates. Some items normally associated with restaurants like Garlic, Ginger, and Tumeric Roots have shown an increase in demand by retailers due to more home cooking and greater emphasis on healthy eating. As for local produce, even though fuel expense and driver and truck shortages have raised costs,  Katzman says their strategy of having a full line of California products is a real advantage for many customers. Katzman does also has long-standing relationships with many local growers and shippers on the east coast including Canada. This diversification of supply reduces their reliance on cross-country shipments.    

New York has always had a very high percentage of smaller independent retailers. This is due to many factors, including high expenses and the challenges of doing business in such a densely populated area. NYC is home to the most varied ethnic communities in the country. It is estimated that over 600 languages are spoken. First and second-generation American businessmen and women cater to this diverse immigrant population. They use the retail food industry as their stepping stone to economic success and independence. Many of these hard-working entrepreneurs purchase a wide variety of fresh produce from vendors at Hunts Point. They are also supplied by leading wholesale service providers like Unfi and C&S. 

Wakefern and Stop n Shop continue to have a huge presence in the greater metro New York market. However, most of their stores are located outside of New York City. Since the departure of A&P five years ago, Whole Foods and Trader Joe’s have significantly increased their store count,  including in New York City. There has been a steady increase in at-home shopping during the Pandemic – and almost all retailers offer it. Supermarkets are trying various methods to implement this service in a cost-effective manner. Companies that specialize in online shopping like Fresh Direct have a loyal customer base, but the majority of retail fresh produce is still purchased in person at store level. 

During the past three years, Aldi has greatly increased their presence in metro New York. More recently Lidl has opened stores in this lucrative market.  Both companies have plans for continued expansion. These foreign retail banners with limited SKUs,  smaller footprints, and aggressive pricing fit well in urban areas like New York City. They have deep financial resources and a track record of success in Europe. Costco, BJ’s, and Target are sprinkled throughout the region and are an important part of the food retail mix. However, they require a large amount of space and are limited in number. Due to consistent local opposition, there are only a handful of Walmart stores in metropolitan New York.

How are individual produce companies and the federal government responding?

Over the past 25 years, individual produce companies have made breathtaking changes in their product line. In many categories, seasonality has been virtually eliminated due to supplies from Mexico, Central America, and the southern hemisphere. Industrial greenhouses in the United States and Canada are adding much-needed continuity of supply by category as well. There are many new varieties of fresh fruits and vegetables that have improved taste and shelf life. Companies continue to offer an abundance of new packaging in response to changing American lifestyles and demographics. Fresh produce companies are constantly improving. But are we expanding usage and consumer base or competing for the same customer dollars?

The federal government is trying to encourage greater consumption of fresh produce. In 2020 the USDA issued a revised dietary guideline that recommended half your plate include fresh fruits and vegetables.  During the height of the pandemic last year the Department of Agriculture offered a special assistance program called “the farmers to families-food-box program” that included fresh produce. The federal government’s SNAP program impacts over 42 million Americans. On the other hand government subsidies that reduce the cost of corn, grain and soybean have contributed to our high calorie, low nutrient diet. Americans are among the unhealthiest in the developed world due to obesity, high blood pressure, heart disease, and diabetes. 

The new 2020 census results are in. It will take a while to fully understand it – but they report a noticeable change in the U.S. population.  The Hispanic and Asian communities in particular have expanded significantly in the past 10 years.  The fresh produce industry needs to understand on a demographic level what challenges and opportunities exist that reflect this new more diverse America.

Summary

Experts agree that per capita fresh produce consumption is related to ACCESS – availability, price, and convenience and ATTITUDE  toward fresh produce in general and specific items in particular.  The produce industry is in the end persuaders – competing in the food marketplace.   If we want to thrive – in addition to coming up with the best possible products at a reasonable cost – over the next decade – it is in our own self-interest to partner with local and federal agencies, not for profit organizations and produce industry trade groups to persuade Americans to adopt a healthier plant-based diet that includes fresh fruit and vegetables.  

The fresh produce industry should continue to solicit business from current heavy users but real sustainable growth will come when we change the eating habits of the 175 million Americans that eat less than one fruit and vegetable per day. If we can do that everyone wins.  

-Craig A. Padover

CAP Marketing and Sales

“I don’t believe the government should tell you what you can have on your grill in your backyard on Saturday. What the government should do is not feed the crisis. So we can’t have a department of Health and Mental Hygiene fighting childhood obesity, diabetes, and asthma and a Department of Education preparing 960,000 meals a day that cause childhood obesity, diabetes, and asthma. So what you do with your dollar is up to you. But on taxpayers dollars, we should not be feeding a health care crisis”

NYC Mayor Elect Eric Adams speaking to Grub Street/ New York Magazine

September 28, 2021.

At midnight on January 1, 2022,  Eric Leroy Adams will be sworn in as New York City’s 110th mayor.  His life story is as big as the city he will soon lead. A strict vegan, Adams eats only fruits and vegetables, whole grains, and nuts. Six years ago a diabetes scare caused partial blindness and nerve damage in his hands and feet, Adams traveled to the Cleveland Clinic for answers. The Lifestyle and Integrative Medicine department at the clinic recommended that Adams dramatically change his diet. Mayor-elect Adams is now in the best shape of his life.  Last year he wrote a book about his experience called “Healthy at Last”.  During his campaign, this stylish hard-charging mayor-elect had been spotted at trendy nightspots and fundraisers downing plates of broccoli, spinach, and kale.

Eric Adams will be the second African American mayor in New York history. He will not hesitate to use his power of the purse to increase access to healthy food choices and his bully pulpit to encourage lifestyle and diet changes for New Yorkers – especially in nutritionally underserved communities. However, Mayor-elect Adams will not legislate good eating habits for New Yorkers. His friend and mentor, former Mayor Michael Bloomberg learned that lesson with his catastrophic “soda ban” proposal in 2014.  Adams has said though that he plans to launch “lifestyle medicine clinics” throughout New York City’s five boroughs. They will encourage increased consumption of fresh fruits and vegetables.

Adams is not afraid to mix it up with his fellow New Yorkers to take more personal responsibility for their health and well-being. Ten years ago when he was a Brooklyn State Senator representing the 20th district he started a “Stop the Sag” billboard campaign to encourage  Brooklyn teenagers to take more pride in how they dress. That fad has now passed.

The general perception inside and outside of New York City is that the politics of the city lean liberal – and they do. But there has always been a practical side to gritty New Yorkers. Adams, a Democrat, is considered a moderate. He describes himself as a “practical progressive” and has built a broad coalition of supporters across many demographic groups and constituencies  – including business.  He vows to be a “GSD Mayor – Get Stuff Done”.

There is no shortage of challenges for this Mayor-elect.  The Covid 19 pandemic has impacted the New York City economy more than many other areas of the country due to its reliance on tourism and white-collar jobs – many of which are now remote. Besides revitalizing the New York City economy, Adam’s promises to improve public safety, increase affordable housing, repair New York’s broken judicial system and create more educational opportunities for all New Yorkers. 

Adams has succeeded in his life by facing challenges head-on. This self-described “blue collar” Mayor was the fourth of six children.  He grew up in a rodent-infested tenement in Brooklyn. His mother cleaned houses and his alcoholic father was a butcher. When he was eight the family saved enough money to buy a modest home in South Jamaica, Queens.  As a teenager, he got in trouble with the law and was beaten by two New York City police officers. It was that experience that motivated him to reform the NYPD from within. Diagnosed late in his academic career as dyslexic – Adams went on to graduate second in his class at the Police Academy. Eventually, he became a captain at New York’s 6th precinct in Greenwich Village.  His sights though were set on higher office. After retiring from the NYPD. Adams went on to become a Brooklyn State Senator, and more recently the Brooklyn Borough President. His deeply religious mother, Dorothy passed away last year. She was in many ways his north star. To honor her memory he will take his oath of office on her well-worn bible. 

So what kind of impact can New York City Mayor-elect Adams have on the fresh produce industry? 

The answer will depend on how successful he is as mayor – his popularity and his ability to “Get Stuff Done”. His life story and record of achievement is compelling and bodes well for New York City.  Clearly, the fresh produce industry now has a once-in-a-generation ally and advocate in City Hall.  If he is successful his approach can be a role model for the rest of the country.  It is now up to the produce industry to work with Mayor-elect Eric Adams and his team to find ways to increase consumption of healthy fresh fruits and vegetables to benefit all New Yorkers.     Let’s get to work !  

-Craig Padover

CAP Marketing and Sales