July 2004 Meeting Summary
Commission approves revised 2004-2005 budget The Florida Citrus Commission approved a revised $60.9 million budget Wednesday, a 14 percent drop from last year's budget.
The final 2004-2005 budget is $6.3 less than the initial one proposed in June. To fund the budget, the FDOC will levy a 16.5 cent tax on processed orange, a 24 cent tax on processed grapefruit, a 20 cent tax on fresh orange, a 25 cent tax on fresh grapefruit, a 16.5 cent tax on processed specialty and a 21 cent tax on fresh specialty.
To fit within the revised budget, the FDOC made cuts in scientific research, mechanical harvesting research, salaries and benefits, a co-op grapefruit juice marketing program and some international marketing.
A 1.5 cent hike on processed oranges represents the sole tax increase from last year's rates. A smaller crop forecast is a factor in the reduced budget.
Commissioner committee assignments announced
The Commission revamped its committee structure at the July meeting. Here are the new assignments.
Processors and FDOC will work together on retail/food service program
The FDOC's new retail/foodservice communication program will be a cooperative effort between the Department and the Florida Citrus Processors Association.
Pete Palmer, head of the FDOC's retail/foodservice program, said Wednesday the FDOC will not approach retailers or foodservice operators with promotion and marketing information without consulting the processors first.
The program, which is scheduled to start in September, is designed to give processors and retailers information about changes or trends within the retail, foodservice and school marketing venues.
The program is important because the decline in orange juice consumption can, in part, be attributed to less grocery store shelf space for the beverage, according to Rick Pensa, president of Insight, Information and Consulting Services.
Pensa, who gave a shelf space presentation at the meeting, said adding only one foot of orange juice shelf space at every grocery store nationwide would increase total store inventories by 300,000 gallons. He said the industry can't sell more juice if retailers don't have more inventory.
Insight, Information and Consulting Services is putting the finishing touches on a shelf space study that will give the industry the information it needs to approach retailers and convince them orange juice is a profitable product and should get more shelf space.
Commission approves two fresh marketing programs
The Commission approved two marketing programs Wednesday designed to move more fresh Florida oranges, grapefruit and tangerines.
The first is a cooperative effort between the Florida Department of Agriculture and Consumer Services and the FDOC.
The FDACS' "Power Grid" program employs 14 field representatives that offer retailers incentives to promote Florida's 19 field grown fruits and vegetables in "best food day" newspaper advertisements. The FDOC will invest $300,000 dollars into the program. With the money, the FDACS reps will be able to offer up to a $500 per ad incentive to promote Florida citrus instead of the standard $200.
The Power Grid program placed 137,000 ads during the 2003-2004 season.
The second marketing program is the revitalization of fresh-squeezed juice market. The FDOC program will develop a comprehensive guid
e for the introduction of fresh squeezed juice into grocery stores. The FDOC wants to provide retailers with a "turn-key" fresh squeezed operation including training, in-store inspection, category management information, packaging and machinery. In the next few weeks, the FDOC plans to have its counsel look into any legal issues that may arise.
The fresh-squeezed program is scheduled to start on December 1, 2004.
Richards Group contract finalized
The Commission finalized a new contract for The Richards Group of Dallas, Texas to remain the advertising agency of record for the Florida Department of Citrus.
As part of the new contract, The Richards Group will bill the FDOC hourly for work completed as opposed to the flat fee-based system employed by the FDOC in previous advertising contracts.
There will also be a $1.8 million cap per year on agency fees.
The Richards Group is eligible to receive a bonus equal to 5 percent of its total billings.
The bonus is based on sales of 100 percent orange juice.
In June, The Richards Group, the incumbent, won the five-year contract totaling approximately $100 – 125 million. The advertising firm created the FDOC's current "Blender" television advertisement. It has been well received by consumers.
Next month the ad agency will take a handful of new advertising concepts to focus groups in order to build on the momentum created by "Blender." The focus groups, located in Cincinnati and New York, will help decide which concept is the most effective. The new ad is scheduled to air in October.
FDOC's gathering information on "low-carb" and "Lite" orange-flavored cocktails
In the next week, the FDOC plans to begin polling consumers to find out whether they are confusing new "low-carb" orange juice cocktails with real, 100 percent pure orange juice.
More than 500 people will be questioned in 10 cities about their knowledge of the new "low-carb" and "lite" orange juice cocktails on the market. The study will also look at how the beverages are presented on retailers' shelves.
The FDOC wants to find out if the drinks have insufficient or misleading labeling.
Many of the juice beverages use colorful pictures of oranges and orange groves despite being comprised of less than 50 percent juice.
One juice cocktail uses green wording on a green background to inform consumers it's an "orange juice beverage" rather than 100 percent juice.
The FDOC also wants to discover whether low-carb juice is cannibalizing sales of 100 percent pure juice.
The FDOC's labeling findings, scheduled to be completed by mid-August, will be shared with the brands and the U.S. Food and Drug Administration
Commission approves revised 2004-2005 budget The Florida Citrus Commission approved a revised $60.9 million budget Wednesday, a 14 percent drop from last year's budget.
The final 2004-2005 budget is $6.3 less than the initial one proposed in June. To fund the budget, the FDOC will levy a 16.5 cent tax on processed orange, a 24 cent tax on processed grapefruit, a 20 cent tax on fresh orange, a 25 cent tax on fresh grapefruit, a 16.5 cent tax on processed specialty and a 21 cent tax on fresh specialty.
To fit within the revised budget, the FDOC made cuts in scientific research, mechanical harvesting research, salaries and benefits, a co-op grapefruit juice marketing program and some international marketing.
A 1.5 cent hike on processed oranges represents the sole tax increase from last year's rates. A smaller crop forecast is a factor in the reduced budget.
Commissioner committee assignments announced
The Commission revamped its committee structure at the July meeting. Here are the new assignments.
Orange Juice Marketing Chair: Pat Carlton Vice Chair: Anina McSweeney Grapefruit Juice Marketing Chair: Ray Smith Vice Chair: Cody Estes Fresh Fruit Marketing Chair: George Pantuso Vice Chair: Pat Carlton International Marketing Chair: Cody Estes Vice Chair: Ray Smith In-State Promotions Chair: Bill Ferrari Vice Chair: George Pantuso Product Research Chair: Tris Chapman Vice Chair: Bill Ferrari |
Market/Economic Research Chair: Harry Falk Vice Chair: Tris Chapman Administrative & Budget Chair: Anina McSweeney Vice Chair: Steve Ryan Government Chair: Steve Ryan Vice Chair: Mike Carrere Legal Chair: John Alexander Vice Chair: Harry Falk Strategic Planning Chair: Mike Carrere Vice Chair: John Alexander |
Processors and FDOC will work together on retail/food service program
The FDOC's new retail/foodservice communication program will be a cooperative effort between the Department and the Florida Citrus Processors Association.
Pete Palmer, head of the FDOC's retail/foodservice program, said Wednesday the FDOC will not approach retailers or foodservice operators with promotion and marketing information without consulting the processors first.
The program, which is scheduled to start in September, is designed to give processors and retailers information about changes or trends within the retail, foodservice and school marketing venues.
The program is important because the decline in orange juice consumption can, in part, be attributed to less grocery store shelf space for the beverage, according to Rick Pensa, president of Insight, Information and Consulting Services.
Pensa, who gave a shelf space presentation at the meeting, said adding only one foot of orange juice shelf space at every grocery store nationwide would increase total store inventories by 300,000 gallons. He said the industry can't sell more juice if retailers don't have more inventory.
Insight, Information and Consulting Services is putting the finishing touches on a shelf space study that will give the industry the information it needs to approach retailers and convince them orange juice is a profitable product and should get more shelf space.
Commission approves two fresh marketing programs
The Commission approved two marketing programs Wednesday designed to move more fresh Florida oranges, grapefruit and tangerines.
The first is a cooperative effort between the Florida Department of Agriculture and Consumer Services and the FDOC.
The FDACS' "Power Grid" program employs 14 field representatives that offer retailers incentives to promote Florida's 19 field grown fruits and vegetables in "best food day" newspaper advertisements. The FDOC will invest $300,000 dollars into the program. With the money, the FDACS reps will be able to offer up to a $500 per ad incentive to promote Florida citrus instead of the standard $200.
The Power Grid program placed 137,000 ads during the 2003-2004 season.
The second marketing program is the revitalization of fresh-squeezed juice market. The FDOC program will develop a comprehensive guid
e for the introduction of fresh squeezed juice into grocery stores. The FDOC wants to provide retailers with a "turn-key" fresh squeezed operation including training, in-store inspection, category management information, packaging and machinery. In the next few weeks, the FDOC plans to have its counsel look into any legal issues that may arise.
The fresh-squeezed program is scheduled to start on December 1, 2004.
Richards Group contract finalized
The Commission finalized a new contract for The Richards Group of Dallas, Texas to remain the advertising agency of record for the Florida Department of Citrus.
As part of the new contract, The Richards Group will bill the FDOC hourly for work completed as opposed to the flat fee-based system employed by the FDOC in previous advertising contracts.
There will also be a $1.8 million cap per year on agency fees.
The Richards Group is eligible to receive a bonus equal to 5 percent of its total billings.
The bonus is based on sales of 100 percent orange juice.
In June, The Richards Group, the incumbent, won the five-year contract totaling approximately $100 – 125 million. The advertising firm created the FDOC's current "Blender" television advertisement. It has been well received by consumers.
Next month the ad agency will take a handful of new advertising concepts to focus groups in order to build on the momentum created by "Blender." The focus groups, located in Cincinnati and New York, will help decide which concept is the most effective. The new ad is scheduled to air in October.
FDOC's gathering information on "low-carb" and "Lite" orange-flavored cocktails
In the next week, the FDOC plans to begin polling consumers to find out whether they are confusing new "low-carb" orange juice cocktails with real, 100 percent pure orange juice.
More than 500 people will be questioned in 10 cities about their knowledge of the new "low-carb" and "lite" orange juice cocktails on the market. The study will also look at how the beverages are presented on retailers' shelves.
The FDOC wants to find out if the drinks have insufficient or misleading labeling.
Many of the juice beverages use colorful pictures of oranges and orange groves despite being comprised of less than 50 percent juice.
One juice cocktail uses green wording on a green background to inform consumers it's an "orange juice beverage" rather than 100 percent juice.
The FDOC also wants to discover whether low-carb juice is cannibalizing sales of 100 percent pure juice.
The FDOC's labeling findings, scheduled to be completed by mid-August, will be shared with the brands and the U.S. Food and Drug Administration