Tag Archives: Sales

It’s nice to talk food safety, but sales rule: Walmart memo orders stores to improve grocery performance

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Last month, Walmart, according to the N.Y. Times, issued an “urgent agenda” memo to managers across the country pushing them to improve performance on “Chilled and Fresh” items in its dairy, meat and produce departments, part of an effort by Walmart to stem long-sluggish sales. It also reflected customer complaints that Walmart has received in recent years as it has expanded offerings of organic foods and produce, often at cheaper prices than its competitors.

walmart_groceriesThe memo, marked “highly sensitive,” tells Walmart marketing managers to make sure that the company’s 4,965 United States stores discount aging meat and baked goods to maximize the chance that those items will sell before their expiration dates. The memo — leaked for public use by a Walmart manager unhappy about understaffing — also tells stores to be sure to “rotate” dairy products and eggs, which means removing expired items and adding new stock at the bottom and back of display cases.

In discussing produce, the memo tells managers to “validate that stores are fully executing on ‘Would I Buy It?’ ” — a plea to make sure that every store removes moldy or rotting fruits and vegetables.

Sent on Oct. 2, the memo reminds managers that their No. 1 concern must be sales. For the last 18 months, Walmart’s sales have been sluggish in stores open at least a year. The memo also urges managers to reduce backup inventory to trim costs, and warns them not to exceed budgets for their stores.

California cantaloupe sales crumble in wake of listeria outbreak

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Instead of picking the melons and supervising a work crew, Dora and David Elias of Mendota, California – the cantaloupe center of the world — were unemployed — laid off along with hundreds of others as the cantaloupe listeria outbreak traced to Colorado rippled across the nation.

Associated Press reports the pangs were particularly felt here in the top cantaloupe-producing state. Sales of California cantaloupes plummeted, even though their fruit was safe to eat. Farmers abandoned fields. Farmworkers lost jobs.

"We can’t sell the fruit," said Rodney Van Bebber, sales manager for Mendota-based Pappas Produce Company. "Retail stores are taking cantaloupes off the shelves, and growers are disking in their fruit because people are afraid to eat them."

Federal officials quickly isolated the contamination to Jensen Farms in the Colorado town of Holly, which recalled its cantaloupes in mid-September. The tainted cantaloupes should be out of stores now because their shelf life is about two weeks.

But farmers said the outbreak’s source mattered little. In recent weeks, Van Bebber fielded more than 300 phone calls from customers asking whether his cantaloupes were contaminated. This despite the fact that the company has put California stickers on every piece of fruit; that the California Cantaloupe Advisory Board sent letters to customers informing them that California’s crop is safe; and that supermarkets have put up signs explaining that California cantaloupes were not part of the recall.

Growers are making similar efforts in Arizona, the second-biggest cantaloupe-producing state, where the season has just begun.

Cindi Pearson of Santa Rosa Produce in Maricopa, Ariz., who started harvesting 3,000 acres of cantaloupes last week, is labeling fruit with Arizona-grown stickers. She has placed laminated

"I say we should just quit," Van Bebber said. "There is no reason for us to keep picking."

California-grown cantaloupes have never been linked to any foodborne illness outbreak, Patricio said. In fact, growers here funded research that helped refine their food safety practices. California and Arizona growers — who share a similar desert climate — have limited the use of water when growing cantaloupes by minimizing irrigation (it’s turned off several weeks before packing), field packing the fruit and no longer dunking cantaloupes in water to cool or sanitize the fruit.

Will PB&J as a hedgehog boost Jif sales?

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An 8-year-old Wisconsin girl is heading to New York City next week to compete for a $25,000 college scholarship in a national peanut butter competition for her sandwich shaped like a hedgehog.

Jif peanut butter announced Tuesday that Alexandra Miller’s sandwich created in the image of a hedgehog received enough votes in an online competition last month to earn her one of five finalist spots in the Jif Most Creative Peanut Butter Sandwich Contest (the Jif website totally sucks and I can’t find the picture; it’s also quite sexist; here’s a hedgehog, right).

The recipe, dubbed The Happy Hedgehog, places 1 tablespoon of Jif Creamy Peanut Butter and 1 teaspoon of Smucker’s sugar-free red raspberry preserve between two slices of whole wheat bread. It’s cut into a circle, with the edges pressed together to seal it. Ten pretzel sticks form the hedgehog quills, and almond slivers create ears with raisins for eyes and a Bugle chip for a nose. The hedgehog is complete with raspberry fruit strip feet, and green apple slices with peanut butter piped on top for grass.

Will the gimmick help sales?

Americans bought 41.8 million pounds of jarred peanut butter in the four-week period ending Feb. 21 – 13.3 percent less than in the same period the previous year, research firm Nielsen reported Tuesday.

The period’s sales were the lowest of any in the three years Nielsen has tracked the U.S. food, drug, and mass merchandisers segment, which includes Wal-Mart Stores Inc., the nation’s largest retailer.

Executives said last month that they were seeing weakness in Jif sales because of the outbreak, even though Jif was not affected. The company ran ads in more than 100 papers and aired national consumers saying the Jif brand is safe.

But that safety data is not publicly available. The best food producers, processors, retailers and restaurants should go above and beyond minimal government and auditor standards and sell food safety solutions directly to the public. The best organizations will use their own people to demand ingredients from the best suppliers; use a mixture of encouragement and enforcement to foster a food safety culture; and use technology to be transparent — whether it’s live webcams in the facility or real-time test results on the website — to help restore the shattered trust with the buying public.
 

Sales drop 25% as parents shun peanut butter

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A story in Saturday’s  N.Y. Times will report that sales of all brands of peanut butter are down by nearly 25 percent – and those numbers will get worse.

The contaminated peanut butter traced to the Georgia plant represents a small percentage of the total $800 million in annual sales by the peanut butter companies in the United States. But the public relations problem for the rest of the industry is unlikely to ease anytime soon. …

So far, the salmonella outbreak has been linked to 575 illnesses and eight deaths, and more than 1,500 products have been recalled, including cookies, ice cream and pet food.

In response, brands like Jif and Peter Pan are taking out ads to tell shoppers that their products are not affected, and giving them a coupon.

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Oh, I’m sorry, I fell asleep.

Instead of telling consumers what they aren’t, maybe the big peanut butter types could tell people what they are – the food safety steps they take to produce a product that won’t make people barf.

The best food producers, processors, retailers and restaurants should go above and beyond minimal government and auditor standards and sell food safety solutions directly to the public. The best organizations will use their own people to demand ingredients from the best suppliers; use a mixture of encouragement and enforcement to foster a food safety culture; and use technology to be transparent — whether it’s live webcams in the facility or real-time test results on the website — to help restore the shattered trust with the buying public.

The makers of Jif and Peter Pan have already gone on record saying they will not disclose their own food safety test results.