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Annual report
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Permanent Link: http://ufdc.ufl.edu/UF00076084/00002
 Material Information
Title: Annual report
Physical Description: v. : ; 28 cm.
Language: English
Creator: Florida Citrus Commission -- Dept. of Citrus
Publisher: The Dept.
Place of Publication: Tallahassee?
Creation Date: 1993
Frequency: annual
regular
 Subjects
Subjects / Keywords: Citrus fruit industry -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
serial   ( sobekcm )
 Notes
Statement of Responsibility: The Florida Department of Citrus.
Dates or Sequential Designation: 1969/70-
Numbering Peculiarities: Report year ends June 30.
 Record Information
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 40694066
System ID: UF00076084:00002
 Related Items
Preceded by: Annual report

Full Text




The Florida Department of Citrus


Annual


ort


1993-94


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1993/94


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The Florida Department of Citrus (FDOC), an executive agency
of state government, conducts marketing, research and
regulatory programs on behalf of Florida's citrus industry.

The Florida Citrus Commission, which serves as a board of
directors for the FDOC, consists of 12 members appointed by
the governor of Florida and confirmed by the state Senate
for staggered three-year terms.








The mission of the Florida Department
of Citrus is to enhance the welfare of
Florida citrus growers and the groves
they operate.


FDOC programs are funded through an excise tax paid by the
industry on each box of citrus moved through commercial
channels. The agency does not receive general revenue
support. In fact, a portion of the tax contributed by the industry
is deposited in the state's general revenue fund to offset
state of Florida administrative costs.







The Florida Citrus Commission
1993-94


Name
George H. Austin
Joe L. Davis, Sr.
James E. Huff
Rex V. McPherson, II
John L. Minton
William E. Owens
Margaret W. Paul
Talmadge G. Rice
Quentin J. Roe
J. Brantley Schirard
Howard E. Sorrells
George W. Truitt


Daniel L. Santangelo


District
2
2
3
1
3
3
1
2
1
3
2
1


City
Alva
Avon Park
Wabasso
Winter Garden
Ft. Pierce
Indiantown
Winter Haven
Dade City
Winter Haven
Ft. Pierce
Arcadia
Auburndale


Executive Director, Florida Department of Citrus




O2Qot

,WOL0










EXECUTIVE SUMMARY
(Highlights from the minutes of the Florida Citrus Commission)

The four new Commissioners seated in June 1993 were George Austin, Rex McPherson,
Brantley Schirard and Howard Sorrells. George Truitt was elected chairman, and Howard
Sorrells was elected vice chairman. The Commission appointed Mr. Craig Massey as
general counsel, Mr. Michael W. Sparks as secretary and Ms. Kathryn J. Bradley as
assistant secretary.

Areas currently designated as the Interior production area were renamed the Florida
SunRidge Production Area. (The production areas are more of the types and varieties
of fruit grown, i.e., Indian River grapefruit.) An initiative to amend Sec. 601.091, Florida
Citrus Code, to establish Sarasota, Manatee, Hardee and DeSoto counties as the Peace
River Valley Production Area failed to mature, but the effort continues.

A strategic plan for the Department of Citrus was prepared, covering the years 1993-97,
and was sent to the Commission for approval.

In August 1993, the Florida Citrus Commission hired Mr. Daniel L. Santangelo as the new
executive director. Mr. Santangelo brings to the Department a rich background in private
sector marketing. He appeared before the Senate and the House Agriculture committees,
and quickly became part of the Florida state and citrus industry system.

A major new marketing direction for Florida citrus products was outlined, and a multi-
dimensional strategy was employed under the umbrella of a health/nutrition/wellness
theme to grow the all-Florida share within a growing market. Part of the marketing shift
directed advertising dollars from television advertising to talk radio. A creative foods
program was introduced to advance new ways to use citrus products in cooking, and to
create entirely new foods made from Florida citrus ingredients. An all-Florida section was
designed and adopted to promote Florida 100% juice products segregated from other
beverages in retail supermarkets to emphasize the superior quality of Florida citrus.

Mirroring recent trends in the private sector and other governmental entities, the FDOC,
under the leadership of the executive director, reorganized the marketing department into
teams. The advertising, merchandising, international, foodservice, school marketing and
public & industry relations offices were abolished as separate units and reassembled with
personnel from the original units allocated equally to four teams, namely: Processed
Products, Fresh Fruit, International and Foodservice/School Marketing business units.
Each team has a representative familiar with advertising, merchandising and public
relations, plus a research specialist drawn from the Scientific Research office to lend
technical expertise. The reorganization was intended to give each unit a proprietary
interest in its team goals and objectives, and allow executive management to deal more
effectively with each aspect of the FDOC marketing programs.








The FDOC also began an intensive training program for its field personnel in the area of
category management in retail sales, and is continuing personnel training in related
subjects.

Representatives from Europe and Japan visited the Florida citrus industry for an in-depth
orientation tour, which was also attended by FDOC's USDA liaison.

A retail workshop, in November, was attended by key decision makers from top U.S. retail
businesses, and reflecting its success, was destined to become an annual event.

The FDOC operating budget was revised to $66,781,000, down $1,905,650 from the
preliminary budget, following the USDA October crop forecast upon which the grower
taxes and the FDOC budget are based. Tax rates for the 1993-94 season were the same
as prior year with the exception of grapefruit juice which was down materially, 350 to 170.

NBC-TV's Dateline show on November 16 reported on the adulteration of orange juice
by a company (or companies) who sold to schools. The federal Department of Justice,
for the U.S. Food and Drug Administration, filed suit against a Kentucky company, in
which the FDOC was involved and prevailed in ancillary cases. This afforded the FDOC
an opportunity to promote the pure quality of 100% Florida orange juice in school districts
nationwide.

An advisory council was appointed to study the procedures for issuing licenses and bonds
for the citrus industry, following a recommendation by the Auditor General's office citing
perceived duplication of effort between the DOC and Department of Agriculture in this
area.

The FDOC closely followed the NAFTA and GATT trade accords as they impacted the
Florida citrus industry. The Federal Trade Commission issued an inquiry concerning
FDOC advertising claims, which has ultimately been satisfied after thorough review by the
FTC of all of FDOC's electronic media and print advertising.

Rules passed by the Florida Citrus Commission affecting the citrus industry, included
several pertaining to the export of citrus fruit and payments for performance under the
federal international Market Development Program, as well as rules of domestic trade
such as those concerning additives to juice.

A citrus harvesting program was initiated with the appointment of an advisory council and
a think tank that was held to identify and prioritize the citrus harvesting problems and
recommend a course of action. Both short- and long-term recommendations were drafted
which included hiring a harvesting director at the FDOC to oversee the program.

The following pages highlight the FDOC's programs and progress during 1993-94.







CITRUS PRODUCTION

The 1993-94 Florida citrus crop was substantially larger than the earlier freeze reduced
crops of the 1980s and is following the expected trend towards larger crops in the
upcoming seasons. The upward trend in the size of Florida's citrus crop is due to the
larger investment growers have made in replanting following the freezes. Florida's citrus
tree population increased by 12.7% from 1992 to 1994, and now totals a record 103.7
million trees.

Citrus production in 1993-94 totaled 235.6 million boxes. Orange production totaled 174.2
million boxes with 10 million boxes being utilized in the fresh market. Orange juice
processed from the remaining 164.2 million boxes produced 1,048.5 million single
strength equivalent gallons, the third largest orange juice production in the history of the
Florida citrus industry. The 1994-95 orange juice production is forecast to set a new
record high.

Grapefruit production totaled 51.5 million boxes with 23.3 million boxes utilized in the
fresh market. The 1993-94 fresh grapefruit exports were the third highest level on record
due in part to the expanding markets in Japan and other Far East countries.










FLORIDA ORANGE-JUICE PRODUCTION
I


1,400



1,200



1,000



800


78-79 80-81 82-83 84-85 86-87 88-89 90-91 92-93 94-95

SEASON




FLORIDA CITRUS TREE AND ACREAGE INVENTORY


I I I I I I I I -- I '--
1966 1970 1974 1978 1982 1986 1990 1994
YEAR


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700


110


100


80 -


70-


103.7

S \

S. ACRES






TREES \ ,
-- S'
5,




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REORGANIZATION

Traditionally, the Department of Citrus has been structured as are most governmental
bureaucracies. We believe, however, a more viable organizational structure with
respect to our marketing activities is the newer "team concept" which is in use in many
private sector organizations today.

Mirroring this trend in the private sector and other progressivegovern mental entities,
the department, under the leadership of the executive director, opted to reorganize the
marketing department into teams. Because we are a relatively small organization, it is
thought that we can utilize the team approach to great advantage. As a result,
advertising, merchandising, administration and public & industry relations were
abolished as separate units and reassembled with representatives from the old
organizational units being allocated equally under four smaller teams: Processed
Products, Fresh Fruit, International and Foodservice/School Marketing business units.
Under this arrangement, each team has a representative familiar with advertising,
merchandising and public relations. Additionally, each team was assigned a trained
research specialist from the Scientific Research Unit to deal with the teams' more
technical fresh/processed product needs.

It was felt that such reorganization would give each unit a proprietary interest in its
team goals and assignments and, at the same time, allow executive management to
deal directly and more effectively with each aspect of the Department's marketing
programs (Fresh, Processed, International and Foodservice/School Marketing).









FRESH FRUIT
Director, Valerie Barnett



Formed shortly after the start of the
1993-94 fresh season, the FDOC's Fresh
Business Unit, led by Valerie Barnett,
developed an exciting new marketing
and promotion program for 1993-94,
featuring individually themed promotions
tied to the FDOC's overall "wellness"
strategy. FDOC merchandising field
representatives implemented the
programs at the retail level with great
success.

A chronological summary Fresh
promotions kicked off during the early
part of winter, focusing on the beneficial
role citrus can play in fighting colds and
the flu. Promotional kits included
illustrated feature ads, various point-of-
sale material, and consumer information
brochures.

February was promoted as National
Grapefruit Diet Month. Consumers were
introduced to the new Florida Grapefruit
Weight Loss Program, which was
developed for the FDOC by Dr.
Lawrence Cheskin, Medical Director for
Johns Hopkins Weight Loss Clinic in
Baltimore. The program was heavily
promoted through feature ads, in-store
displays, recipe cards and more. A
special brochure was developed to
explain to consumers how the Grapefruit
Weight Loss Program works. The
brochure was part of a comprehensive
promotional kit that included window
banners, price cards and other materials.


Nearly 20,000 kits were shipped to
retailers across the country.

The Florida Grapefruit Weight Loss
Program proved to be extremely popular
with both retailers and consumers. A
produce buyer for one Midwest retail
chain said, "The demand (for the
grapefruit weight loss brochure) has been
incredible. I've never seen anything like
it. A lot of point-of-sale material ends up
collecting dust in the warehouse, but we
can't seem to keep enough of the
grapefruit brochures on hand."

In total, more than six million Florida
Grapefruit Weight Loss brochures were
distributed throughout the United States.
Consumers wrote highly complimentary
letters about how well the program was
working for them; some said it was the
first program they'd found that actually
helped them lose unwanted pounds and
maintain a desirable weight.

Florida grapefruit continued shining
brightly under the retail spotlight with the
debut of the FDOC's Florida Grapefruit
Bin in February. The high-graphic
grapefruit bulk bin functions as a
pre-packed display, providing incremental
cases of Florida citrus in the store. The
bin works as an in-store advertisement
for produce, increasing traffic and total
volume movement in the produce
department.

The sales operations manager for one
major packing house said the bin was
something Florida's citrus industry really
needed. "This is the greatest program
we've seen in the last few years," he
said. "It gives Florida grapefruit increased
visibility in the supermarket. Unlike three







feet of shelf space, this isn't something
shoppers can miss when walking through
the store. The high-quality graphics make
the bin a real eye-catcher. Our
customers are excited about it, too. The
program reduces labor for the produce
clerk. Instead of continuously stocking a
shelf area, he just wheels the bin out
onto the floor. The process of unpacking
and disposing of the 4/5-bushel cartons
is eliminated."

As a follow-up to the "tremendously
successful" (to use the words of one
retail produce buyer) Florida grapefruit
bin program, the FDOC introduced the
Florida orange bin in March. Both adults
and children are featured through the
design of the Florida orange bin. Like the
grapefruit bin, the orange bin uses full-
color graphics to emphasize the health
and wellness benefits of Florida oranges.

Keeping in line with the FDOC's strategic
focus on nutrition and wellness, the bin
program ties into the National Research
Council's "5-A-Day" program, which
recommends that people get five daily
servings of fruits and vegetables,
including citrus, for better health; the "5-
A-Day" logo appears on both the orange
and grapefruit bins.

The FDOC bin can be packed with both
bulk and bagged oranges and grapefruit.
The bin program has proven that by
putting incremental cases of fresh Florida
citrus on the floor, retailers sell more
fruit. One prominent retail chain reported
that the bin program helped triple normal
weekly movement of grapefruit. Another
major chain said average movement
increased five times over when the bin
was used.


In April, the Fresh Team helped bring the
industry together with key produce
executives from retail chains around the
country (and Canada). The Fresh Florida
Citrus Retail Tour gave retail guests a
firsthand look at nurseries, groves and
packinghouses throughout the state, as
well as the opportunity to meet with and
talk to members of Florida's fresh citrus
industry.

The three-day tour wrapped up with
presentations from the Fresh Team and
the DOC's economic and market
research staff. Following those
presentations, DOC Executive Director
Dan Santangelo hosted a roundtable
discussion which led to a healthy
exchange of ideas for promoting and
selling fresh Florida citrus. It was a
positive learning experience for everyone
involved.

The Fresh Team rolled out yet another
promotional program toward the end of
the season. "A Great Way to 5-A-Day"
was the theme. Consumer brochures and
retail price cards suggested creative
ways for using citrus, during breakfast
and at other times of the day, to help
reach the recommended five servings a
day of fruits and vegetables for a healthy
diet.

Throughout the year, the Fresh Team
worked aggressively to educate retailers
and consumers about the specific health
benefits of Florida citrus. The top three
messages they communicated were
these:

1) Studies show that diets low in fat and
high in dietary fiber-containing fruits and
vegetables such as Florida citrus may








reduce the risk of heart disease and
some types of cancer.

2) Florida oranges and grapefruit are fat-
free and sodium-free, making them an
ideal food to include as part of a diet
designed to help people lose excess
pounds and maintain a healthy weight.

3) Florida oranges and grapefruit contain
more dietary fiber (6g) per serving than
any of the other top 20 most popular
fruits (including apples, bananas and
strawberries), and more than any of the
top 20 most popular vegetables
(including broccoli, potatoes and green
beans).

Gift fruit

A cooperative newspaper advertising
program ran in major Florida markets,
with local shipper names and phone
numbers on all advertising.

Also, a special 1-800 Gift Fruit program
was developed to generate out-of-state
leads for participating gift fruit shippers.
The number was promoted extensively
through advertising and public relations
efforts.


Processed Products
Director, Eugene Richmond



PROCESSED ORANGE

Mission: Enhance the welfare of Florida
citrus growers and the groves they
operate.


Objective: Enhance industry returns,
grow demand for Florida citrus, grow the
overall market.

Strategy: Position Florida citrus products
as an important part of a wellness
lifestyle because they provide a unique
combination of taste, health and
nutritional benefits.

Orange juice continues to dominate the
pure juice market, accounting for 61.3%
of retail sales and 58.3% of retail
revenue. Total retail sales were
$2,492,210,000.

In 1993/94, television was the major
vehicle used to reach consumers.
Network and cable TV reached more
than 95% of U.S. households; more than
50 times. Magazine advertising was
used to communicate the health and
nutritional benefits of vitamin C and
orange juice, and network radio helped
expand the frequency of health and
nutrition messages.

Retail emphasis was focused on
category management which stresses
profitability of the entire category rather
than individual brands. Increased shelf
facings, secondary cooler locations and
value-added advertising was
emphasized.

Radio was used during drive times to
remind people that Florida orange juice
was on sale and to suggest they pick
some up now! (On the way to work or
on the drive home.) Each commercial
was tagged with a 15-second tagged
retail message which contained the name
of the retailer, the featured price, and














TOTAL ORANGE JUICE GALLON & DOLLAR SALES

Stores with Sales Over $4 Million Annually


*7 Y


U,

3a
0
"1 60 -
0-
.0


50-




40


I I I I I I I I I I I I I I I I I I I I I I
1/25 4t22 7/15 10 12/30 3/24 1 0 12/1 2W24 5/19 l0 W 1/2 V 1i 2 4/1 7/t I 0tl 3 12/26 3/20 /12 W 11/24 s1e l 514
1989 1990 1991 1992 1993 1994
Date


Source: Nielsen ScanTrack


-$5



- $4


0
- $3

Q.
- $2
.-


S$1



S$0


TOTAL GRAPEFRUIT JUICE GALLON & DOLLAR SALES

Stores with Sales Over $4 Million Annually


.7 -


4.5-


45
" 4


3.5 -


3-


I I I I- I 11 I I I I I I I I I I
12 422 7/1 10/7 120 32 tI Wa 12/1 22"W 4 /19 WI 11 1 1/2 '5 4/ 7/11 4an Im .12 W4 W I1/ 2 a1S9 14
1989 1990 1991 Date992 1993 1994
Source: A.C.Nielsen ScanTrack


-$5



- $4.5



0
-$4 )



- $3.5 .



-$3



$2.5


$4.59 PRICE PER GALLON

$4.03

$3.68 $3.69 $3.43
5 $"43
62.5 62.8
S 59.7 58.6 6



53.6 53-
50.6
49.0

MILLIONS OF GALLONS
42.9


$4.57


$4.23








some key benefits of Florida orange
juice.

In-store advertising provided FDOC
merchandising representatives with a tool
to promote price in stores at the actual
point of sale. In-store advertising is an
electronic sign with the flexibility of
promoting the particular brand of Florida
orange juice that is on sale at any given
time. This system is installed in 5,400
major supermarkets accounting for more
than 40 percent of all commodity volume.
Research has indicated that stores using
the in-store advertising signs increased
Florida orange juice retail sales 12 to 15
percent.

Training programs for the field staff
preparing them to be the retail "Category
Captain" for each chain were begun.
The FDOC field representative should be
the expert in category management so
that when retailers have questions they
will contact the FDOC. The FDOC has
creditability with retailers because their
objectives are the same to increase the
sale and profitability of the "category,"
not the individual brands.

GRAPEFRUIT JUICE

Merchandising Objectives:

1) Introduce a new grapefruit weight loss
diet called "Florida Grapefruit Wellness
Program."

2) Tie-in with fresh grapefruit where
appropriate.

Television tags will be used to support
the Grapefruit Juice Wellness Program.
Field personnel will work with top


retailers in key category development
markets. Each chain will run a feature
newspaper ad, retail price reduction, and
add additional shelf positions for
grapefruit juice in return for TV support.


Marketing Objective: Enhance demand
and develop "niche" positions for
premium Florida citrus products in
markets outside of the United States--
primarily Europe and Asia.

International programs in 1993-94
focused on both fresh grapefruit and
100% pure Florida orange and grapefruit
juices. Fresh grapefruit and juice exports
continue to expand dramatically, due in
large part to continued participation in the
federal government's Market Promotion
Program (MPP), formerly called the
Targeted Export Program.

Administered by the U.S. Department of
Agriculture's Foreign Agricultural Service,
MPP is an export market development
program that provides funds to qualified
U.S. agricultural groups for advertising
and promotional activities in foreign
markets. A recent study produced by the
FDOC's economic research staff has
proven the value of MPP and other
programs that support export sales. This
comprehensive study estimates that
every $1 million spent generates more
than $3 million in sales, creates 165 jobs


INTERNATIONAL
Director, Robert Roy









DIRECT SHIPMENTS OF FLORIDA GRAPEFRUIT
TO ALL OFFSHORE DESTINATIONS
"t ,,


30,000

t 25,000 -
0
< 20,000 -
0
O

Q 15,000 -
u-
0
10,000 -

S5,000 -

0-


I I I I I I F 1 T
7879 79-80 881 81-82 82-83 83-84 8485 8586 87 87 8 8889 89-0 90 911-92 92-93 93-94
SEASON


Source: DOC/ERD and CAC
(*) As of June 1994


and results in about $6.25 million in
additional economic activity.

Marketing activities were conducted in 20
European and Asian countries. Total off-
shore shipments of grapefruit reached
approximately 20.4 million cartons--
47.3% of total fresh grapefruit movement.

Europe continues to be the most
competitive fruit and vegetable market in
the world. Research has shown that
better than 66% of buying decisions are
made at point-of-purchase. As a result,
we have adjusted our marketing
approach to focus primarily on in-store
merchandising activities with leading
retailers in our seven core fresh
grapefruit markets--France, Germany, the
United Kingdom, Holland, Belgium,
Switzerland and Scandinavia. An eighth
"new market" was added this season--
Spain--which offers a great deal of
promise in years to come.


100% pure Florida orange juice has
experienced double-digit growth in the
1993-94 season. Better than 34 million
gallons of juice were exported to Europe,
with the most dramatic growth being
noted in France and the United Kingdom.
Germany offers the most promise of any
European market and will be targeted for
expansion in upcoming seasons.

A clear example of the effectiveness of
the FDOC's merchandising Trade
Incentive Program (TIP) was witnessed
in a Florida holiday/vacation sweepstakes
with the J. Sainsbury Company in the
United Kingdom. This May, 1994
promotion, which required a purchase to
enter, increased volume from 4,200
cartons of Florida grapefruit per week
prior to the promotion, to 49,636 cartons
per week during the event--nearly an
eleven-fold increase An added bonus
included the emphasis placed on Florida
as an ideal vacation destination. Overall


I POST-TEA/MPP


(0.523 0'!In

^ "* ., ,


( PRE-TEA/MPP i
PRE-TEA/MPP








volume to the U.K. was up year-to-year
10.5% as compared to Europe as a
whole at 5.8%.

Again, this impressive growth for both
Florida fresh grapefruit and juices has
occurred in a most competitive
environment. Consumers have the ability
to choose grapefruit from more than
seven countries-of-origin and at prices
40% below Florida's. Relating this same
comparison to juice, Florida's premium
pasteurized orange juices will sell for as
much as three times the cost per liter as
a lower quality Brazilian, Israeli,
Moroccan or Spanish product. Clearly,
superior taste, quality and a proven
preference for Florida grapefruit and
juices are key factors that have impacted
Florida's impressive export growth to
Europe.

Japan continued to be the dominant
Asian market for most Florida citrus
products. Marketing activities were
undertaken there for fresh grapefruit,
grapefruit juice, fresh oranges and
orange juice.

FDOC marketing efforts helped increase
exports of fresh grapefruit to Japan from
9.2 million cartons in 1992/93 to 11.5
million in 1993/94--an increase of 26%.

The FDOC conducted its first infomercial
in Japan during the AprilMay period.
The target audience for this program was
housewives. The program aired during
the noon hour, and by the end of the day
most retailers had sold out of all stocks.
Sales increases for the day were
reported at 168%. The average increase
for six days after the program was
153.2%. The retailers and wholesalers


were extremely happy with the
infomercial as it helped move the product
through the trade channel.

Also in Japan, the Ohta Jobbers
Association, in conjunction with the
FDOC, conducted a free sampling of
Florida grapefruit on the street in Ginza
on Sunday, May 8, 1994. They
distributed 20,000 grapefruit to 10,000
people. In addition, brochures on the
health and nutritional benefits of Florida
grapefruit were distributed. The
organization then donated 10 cases of
Florida grapefruit to the welfare
department of a ward office in Chuo
Ward. Both events were extremely
successful and will be considered again
next season.

In other markets of the Far East, a full
range of marketing activities was carried
out on behalf of fresh and processed
grapefruit.


Foodservice Marketing

Marketing Objectives:

1) Promote and generate awareness for
the positive attributes of Florida orange
juice nutrition, health, taste, energy.

2) Heighten awareness and communicate
the positive attributes of Florida citrus,
including specialty fruit.


FOODSERVICE
Director, Clifford C. Wright







As more families are being provided for
by dual wage earners, less time is
available for home cooked meals and
family time. This scenario has had a
solid impact on food "away-from-home"
growth. Because of this growth, it is vital
that Florida citrus products are visible
and available in all foodservice locations.
This could include restaurants, colleges
and universities, vending, health care,
and airlines.

We have made a strong impact with our
programs in both the commercial and
non-commercial markets. According to
our latest research, 92% of casual
restaurants and 99% of hotels and
motels menu citrus products. In the non-
commercial sector, 99% of colleges and
universities, and 99% of hospitals menu
some form of citrus product.

The Department's foodservice trade
advertising places strong emphasis on
100% Florida orange juice as well as
fresh Florida citrus.

Suggestive selling was a key message in
our processed orange advertising. Our
fresh ads focused on various preparation
and recipe suggestions.

Over 500 suggestive selling videos have
been distributed to restaurant chains for
use in their training programs.

The trade incentive program remains one
of the most valuable foodservice
marketing programs. During FY 93/94,
307 trade promotions were run with end-
user accounts. The results of these
programs provided substantial
incremental sales as well as increased


awareness to Florida citrus products in
the foodservice marketplace.

Our public relations effort with the
foodservice media received excellent
pick-up during the year. Over 77
releases have been published at an
estimated value of $65,000. This is a
19% increase versus FY 92/93. Our
Citrus Success newsletter continues to
increase in readership. Over 10,000
foodservice professionals now subscribe
to this complimentary publication.

School Marketing

Marketing Objectives:

1) Increase overall growth in school
volume by 4% during one school year.

2) Establish baseline movement figures
for targeted districts to further refine
growth objectives for each school district.

The School Marketing department
focused on expanding usage of Florida-
identified orange juice in school districts.
Larger school districts were targeted to
change their bid specifications to require
a Florida-identified brand of orange juice.
As a result, 58 of the top 100 school
districts used Florida-identified orange
juice for their bid period.

The objective of trade incentive
promotions with schools was to increase
the amount of orange juice used by the
school district. Promotional efforts
targeted new opportunities such as a la
carte sales of orange juice, serving
orange juice during achievement tests
(for an added energy boost) and
breakfast expansion programs. As a








result of these efforts, schools increased
usage during their promotions from 6,000
cartons to 25,000 cartons, or from 285
cartons to 883 cartons and from 15,000
cartons to 20,000 cartons of 4 ounce
orange juice.

Sampling fresh grapefruit in schools was
a completely new program this year.
Nine school districts participated in the
pilot program. Of the 1450 children
responding to the sampling, 77% liked
the grapefruit, 80% said they would try it
again and 55% said they ate it at home.
The school foodservice operators were
impressed with the results and indicated
they would add fresh grapefruit to their
menus.

A newsletter directed to school
foodservice operators was developed this
year with an 8-9% response rate for
materials and information on Florida
citrus. The responses also provide new
leads for the field staff to develop
promotional activities.








FINANCIAL STATEMENT


Department operations are funded primarily with revenue collected from an excise tax
on each box of citrus moved through commercial channels in Florida. Other revenue
sources include funds from the federal Foreign Agricultural Service (FAS) Program,
and interest earnings. In 1993-94, nearly $7 million was received from FAS, which
represented 10 percent of the total revenue collections.

No money from the state's general revenue fund is used in the operation of the
Department, although the Department does contribute 3 percent of its revenue to
the general revenue fund to cover state administrative costs, as well as
additional funds to cover the cost of employee benefits.

All expenditures of the Department are approved by the Florida Citrus Commission
after a detailed budget review, and they conform to all state spending guidelines and
procedures. In 1993-94, approximately 90 percent of the Department's expenditures
were used in marketing efforts, including advertising, merchandising and public
relations. Research efforts accounted for 6 percent of the expenditures.

For a more detailed analysis of the financial status of the Department, please refer to
the Annual Financial Report for the fiscal year ending June 30, 1994, which was
prepared in conformance with generally accepted accounting principles as prescribed
by the Governmental Accounting Standards Board.


1992-93


1993-94


Revenue


Tax Assessments
FAS Funds
Investments & Other


$60,345,623
6,999,462
1,028,993
$68,374,078


$52,939,319
6,822,775
1,803.870
$61.565,964


Expenditures


Marketing
Non-marketing


$60,650,584
7.712,599
$68,363,183


$52,147,858
7,914.210
$60,062,068








TAX RATES
(in cents per box)
Variety 1991-92 1992-93 1993-94
Oranges
Fresh 29 29 29
Processed 16.5 17.5 17.5
Grapefruit
Fresh 35 35 35
Processed 35 35 17
Specialty Fruit
Fresh 35 35 35
Processed 16.5 17.5 17.5


VOLUME OF TAX-PAID FRUIT


Actual Revenue
Boxes 1992-93


Domestic


Actual Revenue
Boxes 1993-94


Orange
Fresh
Processed
Total Orange
Grapefruit
Fresh
Processed
Total Grapefruit
Specialty Fruit
Fresh
Processed
Total Specialty
Total Domestic
Fresh
Processed
Total
IMPORTS
Orange
Grapefruit
Total Imports
TOTAL ALL CITRUS


9,881,132
173,961.776
183,842,908

22,195,481
31,371,254
53,566,735

4,279,639
4,126,893
8,406,532

36,356,252
209,459,923
245,816,175

34,912,502
84,390
34,996,892
280,813,067


9,216,366
163.349.725
172,566,091

22,256,568
29.047,793
51,304,361


4,887,560
4,877,796
9,775,356

36,360,494
197.275.314
233,635,808

35,913,437
0
35,913,437
269,549,245








OPERATING EXPENDITURES


1992-93


Non-Marketing

Administrative & Support Services
State General Revenue Charge
Scientific Research

Subtotal Non-Marketing


Marketing
Economic and Market Research
All Variety Program
Processed Products Program
Fresh Fruit Program
Foodservice Program
Retail Program
Gift Fruit Program

Intemational Marketing DOC

Subtotal
International Marketing FAS

Subtotal Marketing
TOTAL EXPENDITURES


$3,038,870
2,016,928
2.656.801

7,712,599




1,559,692
2,166,659
30,397,451

8,259,837
2,989,148
1,632,470

654,228

5,991,637
53,651,122
6,999,462
60,650.584
$68,363.183


Increase/
(Decrease)


$487,880
(223,533)
(62.736)
201,611




19,319
(914,711)
(5,072,285)
(2,381,026)

(73,399)
115,302

86,501

(105.740)
(8,326,039)
(176,687)
(8,502.726)
($8.301,115)


1993-94


$3,526,750
1,793,395
2,594,065
7,914,210




1,579,011
1,251,948
25,325,166

5,878,811
2,915,749
1,747,772

740,729

5,885.897
45,325,083

6,822,775
52,147,858
$60.062.068
































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