Produce Wholesalers: Solving Customer Challenges Through Service

As retail and foodservice operators continue to feel the pinch of labor and supply chain issues, wholesalers step in to fill the gap.

When Joel Fierman, president of Fierman Produce in Bronx, NY, started in produce over 45 years ago, customer service looked different.

“Most customers came to the market, picked up and handled it themselves,” he says. “They still relied on our expertise, but service was different and most of the houses specialized in one product. Now, customers expect a full-service house with a lot of logistics support. The customer relies on you to be good at everything and do more for them.”

Though rooted in the same foundations, services offered by wholesalers have evolved and become even more crucial in today’s supply chain. “Quality assurance, delivery, and additional support are so important to our customers,” says Gabriela D’Arrigo, vice president of marketing and communications at D’Arrigo New York in Bronx, NY. “It’s about going the extra mile.”

For retailers, that extra mile is crucial. Price Mabry, vice president of sales and marketing at Roberts Company in Hattiesburg, MS, third-generation grocers operating 19 stores under the Corner Market and Grocery Depot formats, relays that their wholesaler is a game-changer for produce.

“The customer-first approach of Indianapolis Fruit is something we value deeply,” Mabry says. “We’ve built a solid, long-term relationship with them that continues to benefit us year after year.”

“The reality in a competitive market like ours is if we don’t step up to take care of our customers, someone else will.”
— Hutch Morton, J.E. Russell Produce, Toronto, Ontario

The exciting part of wholesaling, according to Hutch Morton, senior vice president at J.E. Russell Produce in Toronto, Ontario, is the need to meet the market and customers where they are. “We have to adjust to be the best partner we can be,” he says. “The reality in a competitive market like ours is if we don’t step up to take care of our customers, someone else will.”

EVOLVING BUSINESS

Once specialists in a particular commodity, wholesalers now provide customer service by offering a wide line. And wholesalers increasingly fill crucial gaps for customers in multiple service areas.

Customer service differentiates produce wholesalers from broad liners, emphasizes Tony Mitchell, president of Indianapolis Fruit (a FreshEdge company) in Indianapolis, IN. “We focus on a lot of customer-facing services,” he says. “We have an outside team and inside sales team supporting our customers with ad planning, sales planograms, and space allocation in the department.”

Some of the challenges wholesalers step up to answer for customers include filling out-of-stocks, delivering on time, cross-docking and redeliveries, says Andrew Scott, vice president business development and marketing at Nickey Gregory Company in Forest Park, GA. “We also work as their value-added, fresh-cut processed partner, and provide training sessions with customer employees.”

“We’ve grown tremendously as a one-stop-shop for our customers,” says Anthony Andreani, director of walk sales at Katzman Produce in Bronx, NY. “Our customers needed more items to be available year-round, so we’ve increasingly sourced from all over the world to fulfill this demand. Our customers wanted more organics, and now we have a dedicated organics department. Our customers rely on us for convenience, so we’ve invested in logistics and the last mile to ensure we’re as reliable and consistent as we can be.”

A significant change in the Ontario Food Terminal, according to Morton, is how many houses now have full lines. “Gone are the days of specializing in just a category or two.”

Management of multiple lines lets wholesalers help customers offer must-have variety.

“With the explosion of SKU counts in produce departments related to value-added, beverages, fresh cuts, salad kits, other convenience items, and organics, wholesalers work to use scale to support the burgeoning variety that helps customers differentiate,” says Jon Steffy, vice president and general manager at Four Seasons Produce in Ephrata, PA. “We also help customers figure out what is best to offer and when, versus not.”

EMPLOYING TECHNOLOGY

Adapting technology in the wholesale environment allows wholesalers to more effectively — and efficiently — serve customers.

“These help us stay relevant to solve tomorrow’s problems for both customers and suppliers,” says Steffy. “The ‘capability bar’ related to compliance, efficiency and execution keeps getting raised. Yesterday’s processes need to change to support tomorrow’s marketplace needs. Partnering and collaborating with customers is where progress happens.”

“Yesterday’s processes need to change to support tomorrow’s marketplace needs. Partnering and collaborating with customers is where progress happens.”
— Jon Steffy, Four Seasons Produce, Ephrata, PA

Billy Itule, chief executive at Willie Itule Produce in Phoenix, AZ, explains foodservice customers continue to look for higher levels of technology from their wholesaler. “Especially with FSMA, being able to report and have full traceability from grower/shipper to end user is vital,” he says.

Technology has also affected the way sales are done. “More and more buying is done off the street,” says T.J. Fleming, vice president at Strube in Chicago, IL. “Customers now email or text an order rather than taking the time to walk the markets.”

The increase in technology makes everyone even more responsible and accountable, explains Dominic Russo, buyer and sales manager at Rocky Produce in Detroit, MI. “Everyone is on 24/7 and we need to be available to service our customers that way.”

For example, Indianapolis Fruit has implemented an e-commerce platform called Pepper that allows customers to access the wholesaler through an iPhone, iPad or desktop, says Mitchell. “It shows product photos, and we have the ability to send messages to the app about opportunity buys.”

Itule increasingly relies on technology to make logistics more efficient. “We deliver on tablets and we are paperless,” he says. “The tablets serve as our routing capacity. Because it’s wireless, we can make routes more efficient in real-time, and see on a large-scale map where we’re hitting certain traffic patterns to find if a better route exists for that customer. As a distributor, the name of the game is efficiency. Going paperless also helps with our sustainability initiatives to reduce our carbon footprint.”

IN-STORE SUPPORT

Offering merchandising services is more common and more important for wholesalers.

“Having this service for your customer is crucial,” says D’Arrigo. “The customer may not have the labor, knowledge or time to do their own merchandising. Our accumulated knowledge helps customers have success. For example, knowing about placement of product and displays, or strategic use of banners and signage, are invaluable for customers. We also do complete resets for stores overnight and create a schematic they can use moving forward.”

In-store support is especially important to independent retailers who might not have access to experienced teams of merchandisers in the field, says Brian Dey, Four Seasons senior merchandiser and natural stores coordinator.

“Retailers rely on us for writing ads, helping to develop merchandising plans and setting financial goals, as well as providing guidance and leadership for their produce staff and teams,” Dey says. “Having dedicated sales reps, pricing teams and merchandising assistance available to our retailers has filled a big void for customers, helping them through challenges, and created opportunity for them.”

One of the biggest challenges retailers face is labor, especially when it comes to training and ensuring consistency across stores. At Roberts Company, Mabry credits Indianapolis Fruit as an incredible partner in this area via their field specialists who work directly with produce managers.

“They help with everything from training on the ordering process to merchandising strategies,” he says. “An example that stands out is how their buying team works directly with us to bring in an incredible variety of products from top suppliers like Driscoll’s. Their weekly ad quotes help us draw customers in with a focus on high-quality, eye-catching produce that creates excitement in-store. They’ve helped us tackle every challenge a retailer could face in the produce department, and their expertise truly makes a difference.”

Nickey Gregory recently started a Retail Support Division to service independent retailers across Georgia, South Carolina and Alabama. “We work with the produce managers of these independents to set pricing each week, work up and create store sets and displays in the stores, and forecasting,” says Scott.

Wholesalers provide in-store support in a variety of ways. “The wholesaler’s role in merchandising really depends on the retail customer’s needs,” says Dominic Riggio, president of Riggio Distribution in Detroit, MI. “Wholesalers can provide full service to include merchandising, or simply supply product. We provide as much as needed, based on the needs of each customer.”

Fierman offers merchandising services by working with some of the commissions and grower/shippers. “We’re helping especially the smaller retailers with access to POP materials and advertising dollars,” says Fierman.

J.E. Russell makes available display or merchandising materials from shippers. “We love to provide that value to our customers,” says Morton. “Our salesmen also talk with customers about best ways to merchandise and, as needed, provide tips for storage and display.”

John Vena, president of John Vena Inc. (JVI) in Philadelphia, PA, relates the company recently provided product and financial support for in-store tastings for a customer. “It resulted in a successful promotion for a relatively new product,” he says.

AN INFORMATION LINK

Communication and information is crucial to servicing customers. “Information is valuable,” says D’Arrigo. “It strengthens the relationship with the customer, and creates a stronger bond of trust.”

Brian Gibbons, produce director at Highland Park Market in Farmington CT, with three stores, relates a major area of customer service provided by wholesalers is nonstop communication. “This includes everything from ‘when I can expect deliveries’ to the minute, market trends on which produce items are going up or down in price, which new growing areas are coming up, new items and constant deals that they are offering to drive sales,” he says.

Customers want open communication, emphasizes Itule of Willie Itule. “When we, as produce experts, come in, we can save money and help in menu development, especially as customers assess budgets, ideation for menu creation, or look at how to optimize spend.”

Katzman is in constant communication with suppliers and customers, particularly when it comes to supply and demand. “We share actionable feedback up and down the supply chain,” says Andreani. “Our customers share which varieties and specs their shoppers prefer, especially at various points throughout the year, and we share that information back with our suppliers so they can produce more.”

PRIZED EXPERTISE

The extensive experience of produce wholesalers is an additional benefit in serving customers. JVI’s Vena explains part of the wholesaler’s job is to know the principal products inside and out.

“Retail and foodservice buyers are often stretched thin and, although they may know their items very well, it is still our job to help them avoid surprises and to support their planning, both long and short term, by ensuring they have the supply and quality information they need,” he says.

Riggio’s mix of old school and new school produce people, spanning three generations, helps suppliers and customers fulfill needs, adjust to supply and demand, and promote as much product as possible, relates Riggio. “Many of our customers have similar generational experience, we are all always learning and growing together as suppliers and customers.”

Roberts’ Mabry notes their wholesaler’s ability to quickly adapt to market trends and understand customer needs has helped drive impressive results. “Our teams work seamlessly together, and this partnership has been pivotal in pushing our business to new heights,” he says.

Wholesale expertise in sourcing from different areas becomes priceless in times of challenge. “The flexibility we have to shift from source regions in case of challenges is a real service we offer customers,” says Francisco Clouthier, owner and general manager of Maui Fresh International in Los Angeles, CA. “For example, if there are production issues in Mexico, we can go to Holland or Spain to supply customers.”

Dey explains Four Seasons’ training also produces results for stores. “Our team expertise comes out with the training we have done with retailers to help grow their sales through training,” he says. “Our training ranges from basic produce operations and merchandising on an entry level all the way through teaching and understanding department financials at a high level for manager/directors.”

The challenge of analytics is another area wholesalers fill with expertise. “Some of the larger independents have analytics, but smaller ones do not,” says Mitchell. “We share our analytics with customers to give them access to this information. We look at what categories are driving the business, what categories show the best gross profit, and where the best placement of that product is in stores.”

Wholesalers also harness expertise to ensure transportation. “We don’t experience gaps in transportation,” says Strube’s Fleming. “We use a handful of truck lines that we load all the time. They know what we need, so when transportation tightens up, they can plan ahead to ensure we are not without trucks.”

ESSENTIAL LOGISTICS

The wholesaler warehouse provides a high-value service for customers. “Since the New York City metro area doesn’t have a lot of space, retailers don’t have room to warehouse product,” says Fierman. “They depend on wholesalers to be their warehouse.”

In Detroit, Rocky Produce brings in so much fresh produce, its customers don’t have to buy so far ahead of time, according to Russo. “They can use our coolers and warehouse as a place to shop from and pick and choose,” he says.

Delivery has become another crucial service area. “Many of our customers now depend on us to deliver to save the cost of a truck and driver,” says Vena. “Frequent deliveries for some customers allow them to carry a little less inventory, producing a little savings in their warehouses or back rooms.”

FreshEdge recently launched 19L Logistics. “Logistics and freight play a major role in what we do,” says Mitchell. “By managing logistics, it helps us manage the supply chain. Our goal is to run our trucks as efficiently as possible and, ultimately, help the cost of goods.”

SIGNIFICANT SERVICES

The sector of the wholesale business as a service provider is increasing, including expansion of ripening, packing and cross-docking.

“Both retailers and foodservice operators have need for extra services, the most obvious include pre-conditioning and repacking,” says Vena. “More and more, we are seeing demand for cross-docking and distribution. In some cases, we share a shipper with the customer and it makes sense to facilitate that as a service to both the customer and to the shipper.”

Roberts Company’s wholesaler offers a variety of services to help streamline its operations and enhance the customer experience, according to Mabry.

“We’ve taken full advantage of their banana program, which ensures a consistent supply of high-quality bananas, ripe and ready for sale,” he says. “Their pre-cut fruits and vegetables have been a huge hit with our customers who are looking for convenience and freshness. Additionally, their unique and hard-to-find varieties of produce continue to wow our customers and set us apart from the competition.”

More wholesalers are ripening multiple products. For example, in addition to bananas, D’Arrigo New York now offers ripening of avocados, mangos and other tropicals. “This service is not just for big box stores, but also for smaller independents, and it’s more affordable,” says D’Arrigo. “For example, we can ripen and deliver six boxes. Previously smaller stores had to go to Costco or Restaurant Depot because ripened products were not available to them at wholesale. Now they are.”

Nickey Gregory ripens bananas and avocados for customers, and its company, Gregory Family Express, handles all inbound and outbound lanes, says Scott. “We also cross-dock and redistribute for customers without warehouse space.”

Cost and efficiency drive cross-docking. “Some of our suppliers have closed DCs due to the cost of operating them,” says D’Arrigo. “These companies recognize the efficiency wholesalers offer. They ship everything to us and we break it down, stage it and deliver it for them.”

Highland Park Markets uses its main supplier, Shapiro Produce in Boston, to cross-dock additional vendors. “These are items such as pre-cut veg and packaged nuts and fruit companies,” says Gibbons. “It’s easier for them to deliver right to the Boston market as opposed to going to each of our stores.”

PACKING AND PROCESSING

As convenience and variety packaging increase in demand, wholesalers step up this service. “Wholesalers have taken repacking to a more sophisticated level,” says D’Arrigo. “We’re doing private label repacking for customers and in different pack sizes that aren’t more readily available in the industry.”

Maui Fresh provides repacking services in multiple pack types. “Customers ask us for all types of packing and we’re very flexible,” says Clouthier. “Our business is modeled so we can do things for our customers in a short amount of time, and be responsive to customers quickly. We do seven-day-a-week delivery, direct store drops, and minimize inventory with more frequent delivery.”

Value-added produce wholesalers are aiding retail and foodservice customers by offering fresh-cut produce to help ease the labor crunch.

“Restaurants and retailers want pre-cut, pre-washed, or specialty produce options to save on labor costs,” says Johnny Karrat, director of sales and operations at Capital City Produce in Troy, NY. “Wholesalers are offering pre-cut produce and customized blends, as well as custom packaging for the kitchens. We have created custom blends of items for stores or restaurants based on items they use or items that would fit well in a mix, stir fry, or sauté recipe.”

Wholesalers continue to expand their value-added processing lines, according to Karrat. “Customers have been proven to save time, labor and money by using value-added, fresh-cut produce in all types of kitchens,” he says. “Chefs are not wasting time or money on prep and are keeping their inexperienced prep staff away from knives and machines.”

Indianapolis Fruit’s in-house processing facility processes 400 different SKUs of retail packs. “We do some foodservice packs and support our intercompany folks,” says Mitchell. “It’s high on our list this year to help grow that category. People are looking for fresh food that is easy and convenient.”