'Fresh Pack' Debut Widens Chiquita's Distribution

Cincinnati -- As marketers at Chiquita Fresh North America LLC know, bananas are a fragile fruit. In the past, supply chain issues put serious restrictions on where the company's fruit could be sold. Now, with new packaging technology, Chiquita bananas are being merchandised in a variety of locations other than supermarket produce sections.The company's new product, called Chiquita To Go, actually extends the shelf life of bananas for up to seven days over traditional methods, allowing for distribution to c-stores and for displays in better cross-promotional areas of stores. The patented packaging technology, developed in agreement with Landec Corp., Menlo Park, CA, is what Chiquita calls its Stay Fresh Pack. "The special pack inside of the box [that holds the bananas] controls the amount of O2 and CO2 in the pack and creates its own little environment," says Lisa Lockard, marketing manager for Chiquita. The boxes are placed in stores in metal and wire display cases, which can be arranged in a flexible freestanding display.The key problem with bananas is that they have to be kept at the right temperature, Lockard says. Those sold in supermarkets are sent through a ripening room and even then they stay in the optimal color for just a few days. "It's really hard for a lot of these alternative channels to handle fresh fruit because they might only get one delivery per week," she says. Chiquita began its first shipment of this new initiative in March after it signed an agreement with Core-Mark International, one of the largest North American distributors to convenience stores. "As far as the product, this is our best banana," adds Lockard. "They are hand-selected for the perfect size and shape. You don't have to wait for them to ripen like traditional bananas because they come right at the perfect color for immediate consumption."Equally important, Lockard says, was then displaying the bananas properly in these new locations. "We need to make sure that they are in what I call a 'banana-safe environment,' where there are no sharp edges or things like that," she says.Enter the Chiquita "Wave" display, which Lockard says was designed to be very modular because of the various needs of different stores. The wire and metal permanent display has the ability to be in a one-, two-, three- or four-tier configuration, while maintaining a small footprint.A blue plastic, crescent-shaped insert comes with each display, which is the best way to showcase the bananas, says Lockard, but it was designed to be removable because some retailers prefer to put the entire box out at one time on the merchandiser and can do that after they remove the insert. Each shelf can accommodate up to 22 bananas.The graphics scream Chiquita from all angles of the display. Three-dimensional plastic panels on the sides and front boldly feature the banana wave and Chiquita logo with its signature yellow and blue colors. The front panels also feature the clean and simple tagline, "Fresh. Healthy. Good To Go." Lockard says the marketing team chose display copy and graphics that stress the fresh factor. "There are people that are seeing bananas maybe in places they haven't before and are wondering how fresh they could be," she says. "That's what we're trying to communicate, the fact that they are fresh, healthy and good to go."The banana imagery is another strong message, Lockard says, and all accompanying point-of-sale from the company (store clings, educational materials) features the same design. "A lot of these retailers have not really dealt with bananas before," she notes. "Part of our biggest challenge is training and teaching them about the number one consumed fruit." The company also provides a clip and price sign that attaches to the display for pricing information.The display was created primarily for the c-store environment, and has received a great response. The initial order of 7,500 units before the March introduction was followed up by another order in May.Consortium Cos., Erlanger, KY, is handling all production. Before rolling out, the unit was tested in more than 200 c-stores, and the goal is for it to reach more than 5,000 retail locations by the end of the year.Several other units are in test right now as part of the ongoing program. The company is trying out different sizes and types of displays to be able to fit into various environments. "This can go in a lot of different places," she says. "We're just to the point where we're really starting to roll this out on a bigger scale. It's still in its infancy in terms of the possibilities." Along with other fruits it provides (which can be housed on the display), Chiquita works with other fruit companies to give retailers the assortment they need. "We wanted to be more of a one-stop shop for the stores so they don't have different fruit suppliers," says Lockard. "It's something that the retailers requested." Along with periodic monitoring to make sure the displays are getting up how and where they should, Lockard says the company will continue to test new displays before they are sent to all retailers."We keep track of their performance and have seen initially that the Wave display has increased sales," she says, attributing that to the wider distribution the company is enjoying, the impact of the display itself and the enhanced environment for storing bananas.Merchandising them the right way and pushing them in the right place are two very important factors, Lockard says. "We have to make sure we have them in the right display mechanism, and that's why we feel the displays are so important. It reduces the shrink at retail and keeps them looking their best."

'Fresh Pack' Debut Widens Chiquita's Distribution

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