IFPA Retail Conference Report 

Here are some takeaways from the International Fresh Produce Association (IFPA) BB #:378962 Retail Conference in Phoenix, AZ earlier this week. 

Conference host Pete Wilder, in sales and engagement for IFPA, was joined by Katarina Ivanovic, assistant marketing manager for Potatoes USA BB #:162347, in getting things underway on Tuesday, April 28.   

The Pulse of Retail 

Gina Jones, IFPA’s vice president of innovation and market integration, opened the first general session with a straight-up assessment: “Produce is at a critical inflection point”—where it’s caught between health demands and affordability. 

With many in the industry using what she called an “old playbook,” she stressed now is the time to make changes. Part of the equation revolves around which consumers suppliers and retailers are trying to attract and retain.  

One strengthening segment is Gen Z and Alpha. Two college students, Eleanora Bernstein from Arizona State University and Isaac Rej from Michigan State University, shared their perspectives. Like most consumers today, cost is top of mind, with each considering price and how far they can stretch a dollar or meal.  

Although both care about healthy eating, price matters more. Other insights: social media often influences meal choices, especially if ingredients are reasonably priced; frozen vegetables are a frequent substitute for fresh, due to pricing and perishability; and convenience is still important, so value-added items are occasional splurges. 

Both like to connect with brands they consider as authentic. They enjoy learning about growers and value info about sustainable efforts and reducing waste, though are leery of greenwashing. When it comes to where to shop, both seek consistent freshness: if a retailer regularly culls less than desirable produce, they’re more likely to come back and spend their limited dollars there. 

EPR Unpacked  

For everyone along the fresh produce supply chain, Extended Producer Responsibility (EPR) has arrived and is ramping up. Seven U.S. states have passed legislation, 15 more are working on it, and 40 European countries have EPR laws.  

Session moderator Vonnie Estes, vice president of innovation for IFPA, points out what was once considered a “nice to have” in terms of sustainability has now shifted to a “must have” with significant penalties for those who don’t track, report, or misreport package volume and weight. 

As Matthew Wright, founder and executive director of Specright, explained, now that trash is harder to get rid of, and more expensive, producers are responsible for reducing waste and the impact their packaging has on the environment.  

Janis McIntosh, director of marketing innovation and sustainability at Naturipe Farms, LLC BB #:165382 and Wright are both heavily immersed in EPR already with McIntosh on the grower-shipper side and Wright as a service provider.  

California already has EPR legislation, and for produce businesses in other states, it’s imperative to understand who must comply. Simply put: if your company name or brand is on the package, you’re responsible, and for grocery retailers, this applies to private label products. 

For its part, Naturipe has a newly developed compliance department to handle EPR and uses Specright to help track all the details. McIntosh mentioned there is a possible silver lining in California—SB 54—which will make any produce packed in the field exempt from EPR, but only if growers apply and are granted the exemption.  

If not exempt, it’s a tough hit for growers already struggling with high production costs and low returns. McIntosh says the rate can range from 30 cents to $1.68 per case, and consumers will pay more at the register with no idea why.  

So how can businesses adapt and deal with it? Educating consumers is a good place to start. “It will take time for the cost to be passed on to the consumer,” Wright says. “It could be months or a year, but it will be passed on—retailers and brands need to be vocal and spread the word.” 

Supply Chain of the Future 

Led by Drew Zabrocki, CEO of Totem, Ltd., members of the Supply Chain of the Future initiative (Martha King, vice president of global programs for Totem, Jack Lagier, senior sales logistics manager of Driscoll’s, Inc. BB #:116044, Tom Pierce, national director of supplier development and direct store delivery for Sobeys Inc. BB #:116615, and Liz Sertl, senior director of supply chain visibility for food at GS1 US) discussed collaboration, progress, and the release of several pilots.  

The initiative is designed to “demonstrate tangible value through industry-owned toolkits, globally recognized standards, and collaborative demonstrations.”  

Harmonization is key, and this comes from sharing data and experiences for the betterment of all. In addition to the six pilots, there are reports available from various Supply Chain of the Future “collabathons” held around the world. 

Initiatives and pilots, of course, are nothing new, but Pierce stresses this effort is different due to the group’s “willingness to be able to fail—but doing it together.”   

Sertl acknowledged standards can be boring, but she points out GTINs are already working by removing silos and allowing disparate parts of the supply chain to work together. “Marrying all transactional data with a barcode can help everyone.” 

Lagier noted, “The need is real, so we have to move forward to address the pressures of the industry and have no choice but to adopt innovation on the supply chain.” Echoing the day’s second session, he added such transformation was not a “nice to have,” but “a need to have.”