Chicago distributors approach holidays warily

Thanksgiving wasn’t a blockbuster holiday for Chicago area produce distributors, but they said it wasn’t a total disaster saleswise.

Suppliers didn’t expect to set sales records during December, either, with businesses as well as individuals eliminating or cutting back holiday parties and gatherings.

Mark Pappas, president of Coosemans Chicago Inc. on the Chicago International Produce Market, said he didn’t know what to expect for the Thanksgiving holiday.

“I had a number in my mind that I thought we would hit for the week, and it came in under that number — not substantially but marginally,” he said.

“I thought we would do more in retail.”

The Christmas season didn’t jump off to a strong start, either.

The week after Thanksgiving, Coosemans typically would gear up with specialty items like lettuces and baby vegetables for corporate Christmas parties that would start as early as the first weekend in December, he said.

“We didn’t see that at all today,” he said on the Monday after Thanksgiving.

TJ Fleming, vice president at Strube Celery and Vegetable Co. on the market, had not yet seen the official sales numbers for Thanksgiving, but he sensed that they were “solid.”
He was surprised with the amount of business the company did the day after Thanksgiving.

“Historically, it’s one of our slowest days of the year, but it was a halfway decent day,” he said.

Retailers appeared to be restocking.

“I think they got a little more business than they anticipated,” Fleming said.

“I think it was a good holiday.”

He described 2020 in general as a very unusual year.

“Retail is up, and foodservice is down because of the shutdowns and the rules and regulations when it comes to restaurants,” he said.

“Thanksgiving was a little bit strange because no one quite knew what to expect,” said Janice Honigberg, president and founder of Schiller Park, Ill.-based Sun Belle Inc., which specializes in berry sales.

Overall, sales were good with a slight pullback on prices for blueberries, possibly because of increased supplies from Peru, she said. But markets for blackberries and strawberries were “extremely strong and active.”

Berry business generally has been robust, she said. 

“Our sales are up substantially this fall.”

The holidays typically are a strong period for berries with lots of promotions and lots of movement, she said, though it remains to be seen how the holiday season will shape up this year.

Many holiday parties won’t be happening, but consumers undoubtedly will continue to buy berries to enjoy at home, so sales should be as strong as ever, Honigberg said.

Conditions as Thanksgiving approached were “chaotic and hectic” at times because of elevated freight and commodity markets, said Josh Wolff, director of growth and strategy for The Ruby Co., Buffalo Grove, Ill.

But he said retail business seemed consistent.

“Compared to last year, retail is pretty steady — maybe a little bit of an increase — while foodservice has definitely taken a hit in the industry,” he said.

'(COVID-19) has turned everything into a little bit of disarray in terms of being able to predict when it’s going to be busy or when it’s going to be slow.' — Jose L. Gonzalez II, J L Gonzalez Produce Inc.

The Ruby Co. also was experiencing growth in areas other than retail, such as with manufacturers and processors who provide ingredients for things like soups, canned goods or frozen dinners.

“Those areas are definitely growing and expanding, and that’s helping to offset some of the areas that have been a little bit slower this year,” Wolff said.

Throughout the holiday season, hardier staple items are popular, like potatoes, onions and sweet potatoes as well as winter squashes, cauliflower, broccoli and Brussels sprouts, he said.

Because of COVID-19, there has been more uncertainty and more unpredictability as the holidays approach, said Jose L. Gonzalez II, chief financial officer at J L Gonzalez Produce Inc. on the Chicago market.

“Before, we had a fairly consistent idea as to when we were going to be busy — what days or what seasons or around what holidays,” he said.

“(COVID-19) has turned everything into a little bit of disarray in terms of being able to predict when it’s going to be busy or when it’s going to be slow,” Gonzalez said.

On the market in general, especially in the early days of COVID-19, there was a significant increase in sales because consumers were going to the grocery store much more frequently, he said.

“People were stocking up, and people were concerned about the food supply chain.”