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Annual report
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Permanent Link: http://ufdc.ufl.edu/UF00076084/00003
 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: 1994
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: UF00076084:00003
 Related Items
Preceded by: Annual report

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







The Florida Citrus Commission 1994/95


9-' ~-r
I


Howard E. Sorrells
Chairman
District 2
Grower


Martha R. Burke
District 1
Grower Shipper


James E. Huff
Vice Chairman
District 3
Grower


W--
Joe L. Davis, Sr.
District 2
Grower


George H. Austin
District 2
Grower


Ronald P. Grigsby
District 1
Grower Processor


~i"l~F'








The Florida Citrus Commission 1994/95


Rex V McPherson, II
District 1
Grower Processor


Margaret W. Paul
District 1
Grower


John L. Minton
District 3
Grower


Talmadge G. Rice
District 2
Grower Processor


William E. Owens
District 3
Grower


m- m
J. Brantley Schirard
District 3
Grower Shipper





Organization of the Florida Department of Citrus













Table of Contents
Page
M mission Statem ent ................................................................................. ....................... i
Florida Citrus Com m mission ............................................................................................. n1
O organization Chart, Florida Departm ent of Citrus .................................................... iv
Table of Contents .............................................................................................. .... .. v
M message from the Executive Director ........................................................................... 1
Processed Business Unit ................................................................................................ 3
Fresh and Gift Fruit Business Unit ............................................................................... 6
International Business Unit ........................................................................................ 11
Foodservice Business Unit .......................................................................................... 14
Scientific Research, Processed and Fresh..................................................................... 18
Econom ic and M market Research ................................................................................. 22
Financial D ata............................................................................................................... 24
Florida Departm ent of Citrus M anagem ent Team ...................................................... 31










"! Message from the Executive Director

IIL 5d4mjeh.

Through the hard work of the Florida last two years alone have been introduced, while
Department of Citrus' (FDOC) business units the fresh produce section has grown from 60
and staff, this year's programs achieved promising items in the late seventies to 300 items, today.
results. In fact, orange juice sales were the second
highest, according to A.C. Nielsen. We are giving Consumer demands and tastes are evolving and so
consumers more reasons to buy Florida citrus. is technology. Our industry stands at the thresh-
old of this important evolution, which necessi-
FDOC marketing objectives for 1994/95 were: states us breaking through our traditional barriers -
the conventional utilizations and methods for
* Enhance industry returns, marketing the Florida citrus product. Currently,
* Grow the demand for Florida citrus. growers have two sources of income fresh and
* Grow the overall market. juice. We must concentrate our efforts on these,
but we also must seek out new sources of income
Achieving these objectives are critical to Florida's for the Florida citrus grower.
citrus industry because we are facing an important
evolution. Coupled with an abundant supply, our Florida Citrus 2000
products are competing in a marketplace that
provides a previously unheard of number of other "Florida Citrus 2000" is the blueprint we adopted
beverages and fresh fruits fighting for retail shelf in 1994/95 to move the industry into the next
space over 4000 new beverage products in the millennium. Using the analogy of a three-legged







stool, we identified three key areas on which to
focus health, retail, and solids.

Health The first leg provides unique platform of
health and nutrition benefits combined with great
taste that is natural to Florida citrus a point of
differentiation.

This past year, the consumer was informed of the
wealth of health benefits to be gained from
consuming the Florida citrus product. The
message that Florida citrus may help prevent
certain types of cancer, heart disease, birth defects,
and aid in weight reduction was widely advertised.

Retail- The second leg is dedicated to getting our
fair share of shelf space to move the tonnage that
is being produced.

Retail shelves have been flooded with new bever-
age products. In 1994/95, we were very successful
in convincing many of the top retailers in the
country that because of the terrific profit margin
the Florida citrus product gcncrates for the
retailer, we deserve 75% of available shelf space
instead of the 50% we have been receiving.

Solids The third leg consists of developing new
ingredient products to keep up with the increas-


ing tonnage of Florida solids a point of
diversification.

Orange is one of the most preferred tastes in
America. Through our research, we have focused a
great deal of attention on developing new ideas for
the food industry that will appeal to the consumer.

Co-branding the Florida citrus solid with an
existing product, comparable to Kellogg's Pop-
Tarts with Smucker's Real Fruit or Betty Crocker's
M&M Cookie Bars, will give consumers the tastes
they like and nutritional advantages.

The cookbook of Florida citrus recipes we devel-
oped was tremendously successful. The hard-bound
version was a best seller for the publisher, Meredith
Corporation. The soft-bound version sold in the
top 4% of all magazines this past year.

Summary

Although we have much more to do, last year's
marketing programs prove that we are moving in
the right direction. The FDOC's 1994/95 Annual
Report describes the program objectives and
accomplishments of each business unit and
research unit.







Processed
S. "()\ Business Unit

J Orange Juice

Marketing Objectives

Enhance industry returns.

* Grow the demand for Florida citrus.

* Grow the overall market.

1994/95 Program

The 1994/95 Processed Business Unit's marketing
program represented the first full year of focus on
the "Wellness Strategy." The goal was to position
Florida citrus products as an important part of a
wellness lifestyle because they provide a unique
combination of taste, health and nutritional
benefits.

The Wellness Strategy was introduced in 1993/94
by a three-phased plan beginning with a Public
Relations educational program on television,
editorials in magazines, and feature articles in
major newspapers. This was followed by an
advertorial advertising effort which focused on
orange juice research studies. Television, maga-
zines, and talk radio were used in this effort. The


third phase was to evolve from an advertorial
approach to an image format that "humanized"
the message and communicated health benefits as
a part of an overall lifestyle. This third phase was
the basis of the 1994/95 program.

Network television, cable television, syndication,
network radio and national magazines were
utilized to generate top-of-mind awareness of the
specific health and nutritional benefits of Florida
orange juice. This national effort reached almost
90% of adults, 18-49, an average of 4.5 times. In
addition, a spot radio co-operative with major
retailers was implemented in
top category development FLORIDA CITRUS:
markets. Each 60 second Ar OF.-
commercial communicated I
the wellness strategy while AN
featuring individual retail
promotional events, further-
ing orange juice benefit
communication.


The Processed Business Unit
also embarked on the Cre-
ative Foods Program, de-
signed to address one of the
industry's greatest challenges:
to slow or arrest the long-







term decline in sales
of frozen orange
juice concentrate
I (FCOJ). The key
element of this
I,I! Program was the 30
minute infomercial
called, "The Great
Cooking Challenge"
Infomercial which
wit Flrinitiated a recipe
contest using FCOJ
between three chefs.
The audience was
invited to send in to
the FDOC the name
of the winner and receive a free cookbook filled
with Florida citrus recipes.

Results

There is hard evidence that the Wellness Strategy
is working. The first report from the Consumer
Tracking Study, conducted by Data Development
Corporation, one of the countries biggest market
research organizations, indicated that consumers are
very aware of the Wellness advertising and that it has
positively enhanced consumer perceptions, the image
of orange juice, and most importantly, increased the


consumption among "core users." The tracking
study research indicates that the Wellness message is
being strongly communicated and has enhanced
consumers' perception of other valuable orange juice
attributes -- "feel good about drinking," "tastes
great," "refreshing," and "a good value for the
money." Indications are that the FDOC has success-
fully executed a wellness message without "making
orange juice too medicinal," an initial concern of
some.

"The Great Cooking Challenge" Infomercial
generated over 50,000 responses, far exceeding
expectations and more than doubling the response
from a typical infomercial.

Awareness of this "new news" and its impact on
consumer behavior also can be seen in the market-
place. In 1994/95, orange juice sales represented the
second best year in history, although total orange
juice sales were off by one percent. The loss was
attributable to the continuing decline in frozen
concentrate gallonage although the rate of decline
was slower than the previous year. Yet, despite FCOJ
sales, the overwhelming beverage choices, the glut of
competitive beverage advertising, the eight percent
average price increase for a gallon of orange juice and
the decline in our share-of-voice of advertising,
Nielsen reported that total 1994 chilled orange juice







volume was up three percent froms 1993, which was
the highest volume year in history.

Grapefruit Juice

Marketing Objectives

* Increase demand for Florida grapefruit juice.

* Improve perception of grapefruit juice as part of
a balanced healthy diet.

* Contemporize the image the grapefruit juice.

1994/95 Program

The 1994/95 Grapefruit Juice Program continued
its focus on the Grapefruit Juice Weight Loss
Program developed by Dr. Lawrence Cheskin,
Medical Director for the Johns Hopkins Univer-
sity Weight Loss Clinic in Baltimore. The pro-
gram offers a blueprint not only for losing weight,
but for keeping weight off through a healthy diet
and lifestyle.

The program was not designed just for people on
diets, but rather as a plan for healthy living that
includes drinking grapefruit juice every day.


The Grapefruit Juice Weight Loss Program
featured 30 second local spot television commer-
cials including 6 second retail tags. In addition to
its advertising value, these spots were used by
FDOC merchandising staff as a bartering device
to provide participating chains the opportunity to
advertise a grapefruit-oriented promotion in
exchange for additional shelf space for grapefruit
juice.

Results

For the first time in two
years, the rate of sales
decline for grapefruit
juice slowed to one
percent despite in-
creased competitive
pressure and retail prices
which remained high,
averaging $4.26 per
4 Gallon. Furthermore,
the decline in grapefruit
sales and revenue came
from frozen and canned
product. Chilled sales
were at all-time highs.
^^^^^ ^01-9








-s ^Fresh and
Gift Fruit
Business Unit

Marketing Objective

Increase demand for fresh Florida citrus by
increasing consumer demand and shelf space for
whole fruit and fresh-squeezed juice at the
retail level, especially with the top 40 retailers in
the U.S. and Canada.

1994/95 Program

When challenged with developing a new and
innovative program to achieve our marketing
objective, the Fresh Business Unit answered with
two core marketing programs: the Fresh Florida
Section and the Florida Citrus Bin. These market-
ing strategies received media coverage in Produce
Business, Produce Merchandising, The Packer,
Produce News, Progressive Grocer, and other
trade publications.

Additional promotional activity included: the
Florida Grapefruit Weight Loss Program, Kids
Promotion, Grapefruit Spoons, a retail tour, and
the Florida citrus variety education program.


The Fresh Florida Section


As a first-year program, the Fresh Florida Section
was implemented on a scale unprecedented in
produce merchandising history. Fresh Florida
Sections were established in more than 4,000
stores, all representing top 40 retail accounts for
Florida citrus.

More than half of the top-40 North American
retailers participated in the Florida Section
program. Following is what some of the those
retailers had to say about the program:

"We saw a big increase in the sale of grapefruit."
southeastern retailer

"We experienced a bigger push on bagged
oranges." midwestern retailer

"Customers thought Florida fruit was better than
California." midwestern retailer

"We felt the promotion was excellent."
southeastern retailer

Results

Independent follow-up research revealed that
stores that implemented Fresh Florida Sections in







1994/95 experienced an average 20% jump in
overall yearly citrus sales. One chain's sales shot
up an amazing 48% for the year.

Before the program was put into place, Florida
citrus typically had a scattered presence in pro-
duce departments, and occupied an average eight
linear feet of shelf space.

After Fresh Florida Sections were implemented, a
destination spot was created for citrus shoppers.
Average linear feet rose to twelve an overall 60%
increase in shelf space!

Florida Citrus Bins

Florida Citrus
Bins were placed
in stores repre- l
sending 55 of the
top retail ac- ORANGES
counts in the U.S.
and Canada. Each
bin represented
incremental
volume of Florida
citrus equivalent
to 3.5 linear feet
of shelf space.


The Fresh Business Unit also introduced a
Canadian Fresh Grapefruit Bin early in the
1994/95 season, and began working toward the
development of a half-bin for the future.

The sales operations manager for one of Florida's
largest packing houses said, "This is the greatest
program we've seen in the last few years. The bins
give Florida citrus 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."

To further increase sales, nearly 2,000 special
shipper displays which promote an expanded
version of the Florida Grapefruit Weight Loss
Program while moving incremental volume of
fresh Florida citrus through Florida Citrus Bins -
were placed in supermarkets around the country.

Each shipper display contained 128 32-page
weight-loss booklets titled "Fresh Start." The
booklets, which also gave shoppers a chance to
win a Florida Spa Vacation through a special
recipe contest, were offered free to consumers
who purchased two Florida grapefruit products,
i.e., a carton of grapefruit juice and a 5-pound bag
of fresh grapefruit.








The shipper displays were offered free to retailers
who ordered a minimum of two Florida Grape-
fruit Bins.

Results

Florida Citrus Bins thrived in their first full retail
season. Over two million cartons of Florida citrus
were shipped in more than 100,000 bins. One
prominent retail chain reported that the bin
program helped triple normal weekly movement
of grapefruit. Another major chain said average
movement increased fivefold when bins were
used.

OTHER PROMOTIONAL ACTIVITIES

Florida Grapefruit Weight Loss Program

The Florida Grapefruit Weight Loss Program was
heavily promoted through feature ads, in-store
displays and more, and was an integral part of the
Fresh Florida Section.

The program explained to consumers that Florida
grapefruit is fat-free, cholesterol-free, sodium-free
and rich in nutrients, making it an ideal part of a
healthy eating program. The Florida Grapefruit
Weight Loss Program was part of a comprehen-


sive promotional kit that included window
banners, price cards and other materials.

The brochure was distributed as an insert in
Reader's Digest. An expanded version of the
program also was developed for use in a special
volume-oriented promotion.

Results

The Florida Grapefruit Weight Loss Program
brochure was placed in the hands of nearly 30
million people.

Grapefruit Spoons

The industry also asked for a program to encour-
age in-home grapefruit consumption. The Fresh






"3-IA


Business Unit answered with a program to offer
high quality Oneida@ grapefruit spoons to







consumers at the special price of $3.95 for a set of
four, plus $1 for shipping and handling.
Two attractive styles of spoons were offered. The
contemporary "Palisades," with its sleek, con-
toured lines, and the elegant, elaborately crafted
"Rembrandt."

Results

Approximately 100,000 spoons were distributed
to grapefruit users during 1994/95. The FDOC
continues to receive orders.

Fresh-Squeezed Juice

Florida's citrus packers asked the Fresh Business
Unit to explore the opportunity of developing a
niche market for fresh-squeezed juice. In re-
sponse, the team designed a program to promote
fresh-squeezed juice in ten major markets. Ele-
ments of the program included the development
of special promotional materials and consumer
promotions; the use of in-store merchandisers;
sampling; and research on juice-blending
possibilities.

Results

Sales doubled during the promotion period and
maintained a 10 to 12% increase after the promo-


tion. When retailers reduced their prices sales
quadrupled.

Kids Promotion

Florida's citrus industry requested that the FDOC
develop promotions geared toward children. The
Fresh Business Unit responded by developing a
promotion specifically targeting kids as part of its
Fresh Florida Section program.

Results

Materials from that promotion (coloring books/
crayons) were distributed in 13,000 stores.

Retail Tour

In April, for the second straight year, the Fresh
Business Unit helped bring the industry together
with key produce executives from retail chains
around the U.S. and Canada. The Fresh Business
Unit's retail tour gave guests a firsthand look at
nurseries, groves, and packing houses throughout
the State, as well as the opportunity to meet with
and talk to members of Florida's fresh fruit
industry.

The tour wrapped up with a roundtable discus-
sion, open to the industry, which led to a healthy








exchange of ideas for promoting and selling fresh
Florida citrus.

Results

Among the comments retailers made during the
discussion:

"Of all the commodity boards out there, two
stand head and shoulders above all the rest -
The Washington Apple Commission and the
Florida Department of Citrus."

"You (the industry) should be proud of the job
these folks (the FDOC) are doing. They truly
make a difference in the way your product is
promoted at retail."

Variety Education

In an effort to educate retailers about some of the
different varieties of citrus grown in Florida, the
Fresh Business Unit initiated a variety mailing
program. Six different mailings were sent to key
retail accounts in the U.S. and Canada. Each
included a greeting from the Fresh Business Unit,
as well as samples of a specific variety of Florida
citrus and a fact sheet on that variety.


Gift Fruit


Marketing Objectives

* Increase demand for gift fruit within Florida.

* Enhance the image of gift fruit in selected
markets.

Through a comprehensive in-state advertising
campaign, two full-color ads were placed in all
Florida newspapers. The ads included a discount
coupon and ran in November to promote gift
fruit during the holiday season. Print ads also
were placed during November and December in
targeted national publications, including Reader's
Diges, New Yorker, Yankee, and Gourmet
magazines.

All advertising included a special, toll-free number
directing callers to participating gift fruit shippers.
More than 4,000 orders were generated through
promotion of the toll free number.

Results

The Florida gift fruit message was carried to an
estimated 35,000,000 consumers through the
FDOC's print advertising program. Approxi-
mately 3,000,000 gift fruit parcels were shipped
during the 1994/95 season.








,.^ INTERNATIONAL
BUSINESS UNIT

Marketing Objectives

* Continue growth in core high volume
markets: United Kingdom, France, Germany,
Japan, Korea, and Taiwan.

* Initiate market development activities in new
markets.

* Focus primarily on three products: fresh
grapefruit, 100% pure Florida orange juice
and 100% pure Florida grapefruit juice.

Market Constraints

In Europe, Florida grapefruit is faced with much
lower priced competition from Brazil, Cuba,
Honduras, Spain, Cyprus, Israel, and Turkey.
Recent recessions have pushed consumers to be
more price conscious, while the greengrocer
outlet system has become fragmented.

Florida's not from concentrate juices are the
fastest growing segments in Europe as consum-
ers begin to recognize the quality of the product,


but 100% Florida citrus juices encounter similar
problems as fresh grapefruit. Brazilian juice is
priced significantly lower, consumer awareness of
the all-Florida product is low, and Europe has a
poor distribution system outside of the major
chains.

In Asia, particularly in Japan, Florida's early season
grapefruit competes with Israeli grapefruit. Tariff
barriers to protect their domestic product still exist
in Taiwan. In Korea, awareness levels of Florida
grapefruit are increasing in the upscale affluent
urban consumer.

Key FDOC juice promotions in Japan are reinforc-
ing the upscale premium end of the market with
not from concentrate juices. However, Brazil
continues to heavily target the country with high
volumes of much lower priced concentrate. 100%
Florida citrus juices face difficult hurdles in Taiwan
and Korea due to market dynamics and the high
cost of the Florida juice product versus other
consumer choices.

This season, quality issues affected our ability to
increase fresh export volumes as low pack-out rates
reduced the quantity of product available for
export, especially white grapefruit destined for
Japan.








1994/95 Program

Florida's competitive advantages for fresh grape-
fruit provided the basis for our fresh marketing
programs much juicier, less peel, sweeter taste.
Our competitive advantage with the not from
concentrate juice provided the basis for our juice
programs tastes more like fresh squeezed.

The International team focused on demonstrating
these advantages at the retail level and in our
advertising. Tactics included comparative product
tasting, display/incentive programs at retail, in-
store billboards and


dramatically. Volume in the U.K. grew nearly 30%
and produced an all-time volume record of
869,000 cartons. Likewise in Asia, Korea grew
volume over 11%.

In Japan, a new region, Kyushu, was targeted for
expansion. A marketing program featuring both
infomercials and in-store promotions resulted in
over 300,000 cartons of Florida red grapefruit
being shipped to this southern island versus the
previous year of 50,000 cartons.

Exports of 100% Florida citrus juice to Europe
continued to grow as volumes to this important


radio, "best food
day" advertising,
co-op advertising/
advertorials,
infomercials and PR
events covered by
the press.

Results

Overall volume in
Europe grew nearly
8%. In particular,
the United King-
dom performed


30,000

25,000
Z
0
< 20,000

60 15,000
U-
0
S10,000
13
z 5,000

0


DIRECT SHIPMENTS OF FLORIDA GRAPEFRUIT
TO ALL OFFSHORE DESTINATIONS








523 9.328





78-79 790 851 8142 8243 838 4 84-85 85-86 8&87 87-88 8889 808 9001 91-92 92-93 93 93 4 95
SEASON


Source: DOC/ERD and CAC
(*) As of June 25, 1995


market reach 45 million
single strength equivalent
(SSE) gallons in the
1994/95 season versus 34
million gallons one year
ago. France alone ex-
ceeded its goal of 19
million SSE gallons by 7
million gallons.

In Japan, gaining new
distribution continues to
be a key in increasing
export volume growth.
After more than a year of








negotiations, 7-Eleven began selling 100%
Florida orange juice and grapefruit juice in April
1995. In excess of 3,000 metric tons will be
purchased by 7-Eleven during 1995/96. Further-
more, two additional convenience store chains
signed contracts with Florida processors to pur-
chase 3,000 metric tons each of 100% Florida
orange and grapefruit juices.








U.S. OFFSHORE EXPORTS OF ORANGE JUICE
200 I 140


150-

LL
0
) 100-

S50
50-


- 120 z

- 100

-80 W
ILl
0
-60 o

-40 3


-I I I I I I 2U

SEASON
Source: U.S. Department of Commerce
* As of June 25, 1995


Opening new markets will continue to be a major
objective in an effort to move the ever-increasing
production volumes anticipated through the year
2000. Florida Citrus Commissioners, FDOC
staff, and key industry representatives attended a
Foreign Agriculture Service sponsored trade fair in
China in an effort to begin the process of gaining
access to this large and yet untapped market. (7~....








U.S. OFFSHORE EXPORTS OF GRAPEFRUIT JUICE
80 1 r,50


70-
-
m
S60-
o-

0 50-
a0

S30-
120-
10-
_


3 I I I a I I I I I I
78-79 7-0 f-I1 81U2 823 80 4 Meas 856 8687 S78 0-49 890o 90-91 9142 23 44 94-95.
SEASON
Source: U.S. Department of Commerce
* As of June 25,1995


U)
-40 z
_J
-30O
u.
-200
z
0


Dollars SSE Gallons
.......


; n


Dollars SSE Gallons








Foodservice
S W Business Unit

Marketing Objectives

* Increase movement of Florida-identified
orange juice by 5%.

* Increase the availability and sale of fresh
Florida citrus through major distributors
and chains.

* Assist the industry with research and
development projects applicable to
foodservice.

With the continued growth of sales dollars
through the
foodservice
segment, the
FDOC .
placed
increased
emphasis on
operator and
distributor
educational B


programs on the profitability of serving/selling
processed and fresh Florida citrus. In 1994/95,
consumers spent 42% of their food dollar on food
purchased in a foodservice environment, with the
balance of 58% purchased in retail grocery stores for
preparation/consumption at home.

The Foodservice Business Unit entered new oppor-
tunity segments and continued with current pro-
grams that resulted in meeting our marketing
objectives. These included: Convenience store (C-
store) promotions, the Florida First Program,
fundraising activities, and new educational
publications.

C-Store Promotions

For the first time the Foodservice Business Unit
entered the C-store segment. C-stores are a growing
foodservice opportunity as store operators find
themselves competing for the same food dollars as
the quick service restaurants next door. An effective
advertising message and sales merchandising materi-
als were offered.


Results

The Foodservice Business Unit received over 700
requests for information on how to bundle orange
juice with their breakfast items and coffee sales, as







well as suggestions on how to sell orange juice at
other times of the day.

Florida First

In an effort to promote Florida citrus sales and
consumption within the State of Florida, phase
one of the "Florida First" program was imple-
mented. The Citrus Success newsletter, which
generates awareness for Florida citrus products
through information on citrus recipes, merchan-
dising tips, etc., was sent to chefs and restaurant
operators throughout the State. The newsletter
encourages increased usage and menuing of citrus
in their establishments, as well as suggestions on
how to promote citrus during National Grapefruit
Month, etc.

Another tactic to promote "Florida First" directly
to consumers was through displaying attractive
signage in six key Florida airports during the peak
tourist season. These signs encourage visitors to
enjoy Florida citrus while visiting the State and to
extend their Florida experience by taking Florida
citrus back home to family and friends.
In addition, we continued to promote the success-
ful suggestive selling and carafe programs, which
encourages the ordering of a full carafe of Florida-


identified orange or grapefruit juice for the whole
table, rather than a single serving.

Results

The FDOC data base consists of over 15,000 restau-
rant operators and continues to grow each month.

The carafe program has proven to increase operator
profits and waitstaff tips.

Fundraising Activities

A rejuvenated opportunity for the Foodservice
Business Unit was using Florida citrus as a
fundraising activity for schools, civic clubs, and
churches outside the State of Florida. New contem-
porary materials that explain how simple it is to
conduct a successful fundraising event with Florida
citrus were prepared. Invitational mailers were sent to
11,000 private and public school personnel inviting
them to purchase Florida citrus to raise money for
their cause.

Results

Last year saw an excellent response. Fundraising sales
increased by 80% over the previous year.







* Increase fresh Florida citrus purchases.


In an effort to train distributors and their sales
representatives, an informative publication
insert was designed. Filled with variety,
seasonality, and sizing information, it will
help increase sales within the foodservice
operator's customer base.


Florida-Identified Juice

During 1994/95, the School Marketing Group
continued its focus on influencing the food buyers
of the largest school districts in the U.S. to specify
and purchase Florida-identified orange juice.


Results


School Marketing


Sixty-nine of the top 100 school districts purchased
Florida-identified juice last school year, an increase
of approximately 18%. Within those school dis-
tricts using Florida orange juice, usage was in-
creased through promotional efforts aimed at


Marketing Objec-
tives

* Increase orange
juice overall
growth in school
volume by 4%
during the
school year.


* Influence 10% more
school districts to specify and purchase
Florida-identified orange juice.

* Influence school foodservice directors to
purchase and serve Florida-identified orange
juice at school meals and functions.


Educational Publications


Fordo 0-d- 01 Cftl, 1992







getting orange juice on the menu more often at
breakfast and at lunch.

Fresh Florida Citrus Purchases

Last year, a fresh grapefruit sampling program in
schools was begun to encourage students to try
fresh grapefruit.


Results


Nearly 70% of students surveyed indicated they
would try grapefruit again. As a result, schools
are putting fresh grapefruit on their menus,
especially during February, National Grapefruit
Month.

New Segment Activities

New segments that were targeted included day
care, summer school meals, and parents. A joint
effort with the USDA produced a guidebook for
home day care providers with menus, food
guides, recipes, and activities aimed at increasing
orange juice consumption among very young
children. Promotional efforts by field staff were
aimed at the summer school market. Finally, a
network with the Parent/Teacher Organization
(PTO) was developed.


Results


Several large school districts will be serving
Florida orange juice during their summer
school programs. A newsletter is being devel-
oped for parents with information about
school meals and the value of Florida orange
juice in those meals. The newsletter will be
distributed to the PTO network.

Merger

During the 1994/95 season, the process of
unifying the Foodservice and School
Marketing field staffs into one cohesive
business unit began. This merger will result in
additional promotion opportunities, as well as
greater travel efficiencies, and broader terri-
tory coverage. Professional training will play
an important role in guiding the field staff as
they accept these new responsibilities and
challenges. ,







Scientific Research

In anticipation of substantially
N greater crops through the year
3 2001, the Department's scientific
research efforts were expanded to
ensure Florida's quality standards
and marketability of Florida citrus products.

During 1994/95, the Scientific Research Depart-
ment was reorganized into two units processed
research and fresh fruit research to allow the
Department to better address the scientific needs
of Florida's processed fruit and fresh fruit indus-
tries. Both units are guided by their own scientific
research directors who coordinate their respective
programs.

The Department's scientific research activities are
conducted primarily at the Citrus Research and
Education Center in Lake Alfred, Florida, where
staff actively participates in the research, education
and extension programs of the University of
Florida. The scientific research staff provide
important technical support on product expan-
sion, new technology for product development,
export quality, regulatory, nutritional, and food
safety issues important to the citrus industry.


Processed Research

Scientific Research activities on processed citrus
included:

1. NUTRITION LABELS: Nutrition labels for the
various types and forms of Florida-packed orange
juice and grapefruit juice, based on the 7-year
citrus nutrient database, were supplied to the
industry for use and guidance.

2. VITAMIN C: A promising new method was
developed to measure total vitamin C which
includes dehydroascorbic acid, an oxidized form
of vitamin C formed in citrus juices during
storage, which possesses biological activity ap-
proximately equal to that of the reduced (L-
ascorbic) form of vitamin C. Possibly higher total
values for vitamin C might be claimed in the
future in nutrition labeling for citrus juices after
storage.

3. FOLATE: A new method is being developed for
the more precise determination of folate, another
important vitamin found especially in orange
juice. Preliminary results indicate that there is







more folate in orange juice than is currently being
claimed in nutrition labeling, but this needs to be
substantiated with more research relating to
variety, treatments, and shelf life.

4. CENTER OF EXCELLENCE FOR GOOD LABORATORY
PRACTICES (GLP): The GLP was established and
initiated for nutrition labeling and product
monitoring programs to gain approval of nutri-
tion databases by the Food and Drug
Administration.

5. MICROWAVE PASTEURIZATION: The flavor
changes of sequentially heated microwave pasteur-
ized juices were compared to conventionally
pasteurized juices. Microwave pasteurized juices.
showed less development of off-flavor compounds
and the concept has now evolved from the pilot
plant to a full-scale commercial unit.

6. PRODUCT MONITORING: The product monitor-
ing program for eligibility in the Florida symbol
program and to detect juice adulteration was
continued. Efforts have been made to establish
contacts with European organizations to solve
some differences in standards of identity and
analytical procedures associated with the exporta-
tion of Florida processed citrus products to
Europe.


7. CANCER RESEARCH: The isolation and character-
ization of citrus phytochemicals and their possible
use as pharmaceutical agents or in human nutri-
tion has continued. Over 75 citrus natural prod-
ucts have been isolated in sufficient amounts to be
tested, and arrangements have been made to have
these products tested by the National Cancer
Institute's cancer/aids screening program. Medical
research sponsored by the Department was
continued with most studies on anti-cancer
properties of various citrus nutrients.

8. OTHER RESEARCH: Other processed research
projects included seasonal surveys of the flavor
and quality factors in juice; country-of-origin
identification; development of new monitoring
systems to evaluate quality deterioration, nonen-
zymic browning, and off-flavor development; and
evaluation of new colorimeters for use by the
industry in measurement of juice color. Coopera-
tion was given the State Test House Advisory
Council regarding recommendations for a pro-
posed evaluation of the State Test House System
Sampler.









Fresh Fruit Research

Scientific research activities on fresh citrus focused
on the following areas:
1. QUARANTINE TREATMENTS: Development of
viable quarantine treatment methods for citrus
fruit against the Caribbean fruit fly was contin-
ued. Irradiation and cold treatment tests were
conducted on different citrus varieties and results
were conveyed to citrus packers and shippers.

2. DECAY CONTROL: Postharvest Decay Control
research focused on the development of physical
treatment methods, particularly hot water. The
fungistatic activity of hot water maintained at
125F was enhanced by the addition of 5 or 10%
ethyl alcohol, however, excessive injury to the peel
makes it commercially infeasible for control of
postharvest decay control.

Newly approved biological decay control agents
were tested on citrus fruit. Biological control
agents provide the industry with an additional
tool for decay control, however, how best these
products may be used by the industry is still to be
determined. Cooperative studies with the manu-


facturers of biological control agents in a com-
mercial packinghouse will be conducted.

3. PEEL DISORDERS: The effects of waxing, storage
temperature, and gaseous exchange on grapefruit
peel pitting were evaluated. The beneficial effects
of cold storage following packing were conveyed
to Florida citrus packers and exporters. The effect
of high pressure washing on stem end rind break-
down, gas exchange and ethylene production of
citrus fruit was evaluated. Morphological charac-
terization of various types of peel pitting in
grapefruit was conducted using both electron and
light microscopy.

4. FRESH SQUEEZED JUICES: Over 100 fresh
squeezed citrus juice and juice blends were charac-
terized for physical, chemical, and sensory quali-
ties. Over 20 blends were judged above satisfac-
tory by a panel of experienced judges. Results
were conveyed to the industry through presenta-
tions at scientific meetings and a brochure devel-
oped by the Fresh Fruit Business Unit.


5. FRESH CUT CITRUS: A new method of peeling
citrus fruit was developed. A patent application
for the peeling process has been filed. Numerous
fresh-cut citrus products were prepared and evalu-








ated for flavor and keeping quality. A compara-
tive study of peeling with and without use of cell
wall degrading enzymes was completed at Pre-
Peeled Fruit, Inc. Section integrity and flavor
were superior in nonenzymatically peeled fruit
over fruit peeled with the aid of enzymes.

6. HARVESTING PROGRAM: A new harvesting
program was initiated in January 1995. The new
program focuses on the development of harvest-
ing equipment and systems for efficient and
economical harvesting of Florida citrus. Two field
tests of trunk shakers were completed. Research
on abscission agents is supported by the harvest-
ing program and training videos for harvesters
have been prepared.

7. Other Research: Staff also participated in
numerous processing and fresh fruit programs
including development of superior tangerine and
grapefruit juice products; evaluation of the
medical and nutritional literature on the health
benefits of citrus fruit; numerous workshops; and
provided technical information to individual and
group packers, shippers and growers. C-
,- N4:;







Economic and
SMarket Research

S- The Economic and
Market Research
Department continued providing both strategic
and evaluative support for the FDOC's marketing
and regulatory programs during 1994-95. A key
activity was research in support of retail merchan-
dising efforts, including analysis of shelf space and
"all-Florida" sections in grocery stores.

Other Economic Research activities included
ongoing applied and basic research addressing
issues related to marketing Florida's citrus prod-
ucts. Research provided long- and short-term
estimates of the supply/demand situation, evalua-
tions of impacts of regulatory/international trade
changes and estimates of long-term economic
impacts of the FDOC marketing program.

Market trends also were monitored to assist in the
development and evaluation of market research
programs. Market research activities were con-
ducted to monitor consumer trends with regard to
citrus products, evaluate the consumer impact of
FDOC marketing programs, and assist in develop-
ing the most effective strategies with which to
market Florida's citrus products. ,










































23







FINANCIAL
DATA







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 in 1994/95
include funds from the federal Foreign Agricul-
tural Service (FAS) Program, unused canker
funds, and interest earnings. In 1994/95, $5.6
million was received from FAS, which represented
8 percent of the total revenue collections. Unused
canker funds of $3.4 million, representing the
surplus of tax dollars assessed on citrus trees for
compensation of property lost in canker eradica-
tion, accounted for 5 percent of 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 1994/95,
approximately 87 percent of the Department's
expenditures were used in marketing efforts,
including advertising, merchandising and public
relations. Research efforts accounted for 4 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, 1995, which was prepared in conform-
ance with generally accepted accounting principles
as prescribed by the Governmental Accounting
Standards Board.










Tax Assessments
FAS Funds
Canker Funds
Investments & Other


Marketing
Non-marketing


1993/94
$52,939,319
6,822,775
665,691
1,138,179
$61,565,964

$52,147,858
7,914,210
$60,062,068


1994/95
$56,578,484
5,633,904
3,470,605
1.810,448
$67,493,441

$55,727,462
8,611,535
$64,338,997


Revenue


Expenditures


TAX RATES
(in cents per box)

Variety 1992/93 1993/94 1994/95

Oranges
Fresh 29.0 29.0 29.0
Processed 17.5 17.5 16.5
Grapefruit
Fresh 35.0 35.0' 35.0
Processed 35.0 17.0 17.0
Specialty Fruit
Fresh 35.0 35.0 35.0
Processed 17.5 17.5 15.5


I







VOLUME OF TAX-PAID FRUIT


Actual Revenue
DOMESTIC Boxes 1993/94


Orange
Fresh
Processed
Total Orange

Grapefruit
Fresh
Processed
Total Grapefruit

Specialty Fruit
Fresh
Processed
Total Specialty


9,216,366
163,349,725
172,566,091


22,256,568
29,047,793
51,304,361


4,887,560
4,877,796
9,765,356


Total Domestic
Fresh
Processed
Total


IMPORTS
Orange


TOTAL ALL CITRUS


36,360,494
197,275,314
233,635,808


35,913,437

269,549,245


Actual Revenue
Boxes 1994/95


9,681,229
198,353,238
208,034,467


21,892,435
33,554,653
55,447,088


4,367,017
4,706,462
9,073,479


35,940,681
236,614,353
272,555,034


32,112,440

304,667,474








OPERATING EXPENDITURES


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
International Marketing
Foodservice Program
Retail Program
Gift Fruit Program

Subtotal Marketing

TOTAL EXPENDITURES


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
12,708,672
2,915,749
1,747,772
740,729

52,147,858

$60,062,068


Increase/
(Decrease)


$226,788
117,592
352,945

697,325


(139,732)
(230,321)
2,688,198
1,134,068
(334,329)
571,328
36,242
(145,850)

3,579,604


1994/95


$3,753,538
1,910,987
2,947,010

8,611,535


1,439,279
1,021,627
28,013,364
7,012,879
12,374,343
3,487,077
1,784,014
594,879

55,727,462


$4,276,929 $64,338,997








COMBINED BALANCE SHEET -- JUNE 30, 1995


Special
Revenue Funds
ASSETS
Cash and Cash
Equivalents $3,374,323
Pooled Investment
with State
Treasury 33,423,213
Due from Federal
Government 3,665,430
Accounts Receivable 51,871
Interest Receivable 202,139
Prepaid Assets 20,471
Inventories 906,194
Other Assets 8,814
Land
Building
Office Furniture and
Equipment
Scientific Equipment
Motor Vehicles
Amount to be Provided


Total Assets


$41,652,455


General
Fixed Assets
Account Group


246,125
713,148

736,820
2,488,356
71,421


$4,255,870


General
Long-Term Debt
Account Group


Total
(Memoradum
Only)


$3,374,323


33,423,213


3,665,430
51,871
202,139
20,471
906,194
8,814
246,125
713,148


1,183,690

$1,183,690


736,820
2,488,356
71,421
1,183,690

$47,092,015








COMBINED BALANCE SHEET -- JUNE 30, 1995


LIABILITIES
Accounts Payable
Due to Other
State Agencies
Other Liabilities
Compensated Absences

Total Liabilities

FUND EQUITY
Investment in General
Fixed Assets
Fund Balances
Designated
Undesignated

Total Fund Equity


Total Liabilities and
Fund Equity


Special
Revenue Funds

$12,222,929


General
Fixed Assets
Account Group


General
Long-Term Debt
Account Group


591,008
23,184


1,183,690


1,183,690


12,837,121


4,255,870


16,800,000
12,015,334

28,815,334


$41,652,455


4,255,870


$4,255,870


$1,183,690


Total
(Memoradum
Only)

$12,222,929

591,008
23,184
1,183,690

14,020,811


4,255,870


16,800,000
12,015,334

33,071,204


$47,092,015







Florida Department of Citrus Management Team
1115 E. Memorial Boulevard Lakeland, Florida 33801 -Telephone 941/499-2500 FAX 941/499-2374

Executive Director ................................................................................................ Daniel L. Santangelo
Deputy Executive Director ....................................................................................... Michael W Sparks

Marketing
Processed Business Unit .................................................................................... Eugene. L. Richmond, Jr.
Fresh and Gift Fruit Business Unit ................................................................................. Valerie K. Barnett
International Business Unit............................................................................................................... Vacant
Foodservice Business Unit........................................................................................... Clifford C. W right
School Marketing .................................................................................................. Linda K. Hawbaker
Economic and Market Research .................................................................................................. Vacant
Merchandising Manager-Northeastern Region.............................................................. Dennis L. Moleta
Merchandising Manager-Central Region ..................................................................... Charles H. Pickens
Merchandising Manager-Southeastern Region ............................................................ Edward J. Peterson
Merchandising Manager-Western Region .................................................................. Lawrence P Kaplan
Foodservice/School Marketing Accounts......................................................................... James W Swartz

Scientific Research
Scientific Research Processed .................................................................................... W illiam S. Stinson
Scientific Research Fresh......................................................................................... Mohamed A. Ismail

Administrative
Comptroller ....................................................................................................................... Linda P. English
General Counsel ..............................................................................................................Clark R. Jennings
Human Resources .................................................................................................... Patrick W. Jackson
Legislative/Industry Relations ..................................................................................... Jacqueline L. Fauls
Support Services................................................................................................... Dennis L. Boulnois, Jr.
31




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