Create extraordinary produce future, Burns says

Instead of pining for the “good old days” before the COVID-19 pandemic, Cathy Burns invited the industry to a “new extraordinary” in her state of the industry address at the Produce Marketing Association Fresh Summit Oct. 13.

Burns, president and CEO of PMA, recalled a line from the television series The Office: “I wish there was a way to know when you’re in the good old days before you’ve actually left them.” While last year’s Fresh Summit in Anaheim featured hugs, smiles, handshakes, laughter and conversations at hotels and the expo floor, that can’t happen in the same way in 2020.

Burns said it is no time to give up.

“I think all of this talk of a new normal is just a way of settling for whatever may come,” she said. “I’m far more interested in a new extraordinary one that we make together.”

Burns recounted the disruption in events and industry caused by the pandemic, from the shutdown of foodservice operators to the surge in business for retailers.

“Those who had invested in innovation found themselves in a much better position than those who had not,” Burns said. “Retailers with strong e-commerce platforms reaped the benefits of consumers turning to online shopping in response to convenience and safety concerns.”

The number of new customers in online grocery has increased 30%, Burns said, and online sales now account for nearly 8% of grocery sales, above the 6% expected before the pandemic.

Burns said contactless delivery brought on by growth in e-commerce and social distancing requirements created strong growth at the start of the pandemic. While only about half of customers initially included fresh produce in their orders because of freshness concerns, Burns said the tide may turning toward fresh.

“In recent conversations I’ve had with a number of retailers, produce is actually outperforming in e-commerce,” she said. 

Burns said there is value in pursuing purpose as an organization goal for any business.

The Harvard Business Review has reported that purpose-driven companies outperform the market by 5-7% per year, and another survey found 73% of employees who say they work at a purpose-driven company are engaged compared to just 23% of those who don’t. 

In that sense, the industry’s goal of feeding the world and providing joy to consumers through fresh produce is an “incredible competitive advantage,” she said.

Produce leaders also must make sure they are creating diversity and inclusion at work by gender, ethnicity, identity and more.

“Our vision is to grow a healthier world for everyone, not just a few,” she said.

Burns noted the growing trends of personalized nutrition and food as medicine.

“Studies continue to show how fresh produce and floral can play a key role in helping consumers enhance their health, be it physical or mental,” she said.

Finally, Burns said that a virtual event can still bring community and resolve to face another challenging year.

“We may not be in the same room, but we are together,” she said. “Some of us may be competitors, but all of us are a community.”

Burns said change happens to the industry, but transformation is what happens because of the industry.

“So don’t dwell on what used to be normal, and don’t wait for the new normal,” she said. “Join with every other PMA member to create the new extraordinary.”

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