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| Issue: 119 |
February 2020
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Limoneira.com
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Fresh Trends Report
According to the Packer's 2019 Fresh Trends Report, Lemons were among the top fruits that consumers bought in the past year.
Lemons were liked by people of all ethnicities. Consumers in the top income bracket earning more than $100,000 annually comprised the
group most likely to
buy lemons overall.
One-tenth of buyers said they chose organic products each time they made a lemon purchase. Twenty-eight percent of buyers reported making periodic organic lemon purchases in the past 12 months.
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The Produce Marketing Association Highlights Limoneira New Sustainability Case Study
CEO Harold Edwards Interview
(Seeking Energy Self-Sufficiency, Limoneira finds Competitive Advantage)
Although the term "sustainability" hadn't yet entered the vocabulary when Limoneira was formed in 1893, its founders inherently understood the business value of treading lightly on the land, developing the communities in which it operates, and being good stewards of its natural, human and other resources. Today, those tenets continue to serve the company, its shareholders and other stakeholders well.
While "they were focused on the practical economic and social realities of that time, it turned out that our founders were real visionaries and pioneers as it related to value creation," says Limoneira CEO Harold Edwards. "By investing in the land, water, local communities and the environment, we are able to make more long-term value than if we'd focused on short-term, immediate gain."
Today, Limoneira is on target to being 100 percent energy-efficient, even selling clean energy back to the electricity supply grid, in the near future. At the same time, the company has found that its commitment to sustainability has helped generate new business and cement its relationships with customers and consumers.
Headquartered in Santa Paula, California, Limoneira grows and harvests lemons, oranges, other citrus and avocados from 14,500 acres on ranches in California, Arizona and Chile. Strategic alliances also supply fruit from Argentina, Mexico and South Africa. The publicly-held company is a diversified packing, sales and marketing company with related agribusiness activities and real estate development operations. The company reported 2019 revenues of $170 million, and EBITDA of $1.5-2.0 million.
The opportunity: Generate enough clean electricity to work off the grid
Limoneira is no stranger to harnessing solar power to reduce the cost of the electricity needed to power its operations. The company made its first large-scale investment of $8 million in solar in 2006 and 2007. Limoneira's solar "orchard" became the world's first solar array in the world to be designated a LEED Gold Certified green building.
"The technology was very inefficient at the time," notes Edwards. "It took five acres of land and 6,500 solar panels to generate one megawatt of energy."
That said, even then its investment proved financially viable, in large part because of how Limoneira financed the project. The company partnered with Farm Credit West, which fronted the capital on 10-year terms. The lender enjoyed the benefit of being able to depreciate the expense, while Limoneira fixed its energy costs at 7 cents per kilowatt - a significant savings from its previous expense of 20 cents or more per kilowatt. After 10 years, Limoneira bought the solar field from the lender, providing the company with even more ROI.
But to truly become energy self-sufficient, Limoneira needed to be able to store energy produced during sunshine hours for use at night.
"The company's goal is to generate as many clean kilowatt-hours as we use," says Edwards. "The future will be to provide a combination of solar-generated kilowatts, plus the ability to store that energy on batteries so that when the grid hits peak demand, they can take self-sustaining producers like us off."
The solution: Store by day, draw by night with Tesla batteries
A good friend of Edwards' was one of the original backers of Tesla; perhaps best known for its iconic electric vehicles, Tesla also supplies solar panels and batteries to generate and store clean energy.
"Ten years ago, we began to talk about ways to incorporate their battery technology to truly get us off the grid - load the batteries during the day [with solar energy or the grid's low-cost kilowatt hours], and then operate [from] them at night," says Edwards. "This will give us the opportunity to arbitrage that market."
A simple contract was signed, and Limoneira became Tesla's battery beta-test site with no capital upfront. The relationship is mutual, Edwards notes; Limoneira gains the energy storage solution it needs, to achieve its goal of self-sufficiency while Tesla gains valuable insight into how their batteries interact with solar arrays and the grid.
The takeaway: Limoneira's sustainability focus has attracted customers
Limoneira's first investment in 2006 of $8 million generated an internal rate of return of 20-25 percent and paid for itself in 4-5 years. "And the technology continues to evolve," notes Edwards. "What cost $8 million then now costs $4 million to generate the same kilowatt-hours in half the footprint."
He encourages anyone interested in investing in solar to understand the investment costs versus energy savings they will realize and to look into tax rebates and credits that might be available from states. For example, Edwards reports, there are opportunities for companies that have roof space but don't want to go out of pocket to get clean energy.
"We just invested in another .75-megawatt array. The way we structured that was to create a power purchase agreement - we provided the space for utility suppliers to put panels on our roof, and in return, we get a fixed price per kilowatt on some of the energy they produce," says Edwards. "We paid no capital out of our pocket, but we get the full benefit of the array because we get the reduced cost per kilowatt than if we had purchased them straight from the utility."
Edwards points out that there are two ways to look at sustainability investments. While generating energy more efficiently has delivered a clear return on the company's capital investment in solar technology, the other ROI has been a bit more obscure: the company's sustainability focus has attracted customers.
"The economics have been fantastic, but the ancillary benefits have been greater," says Edwards. "Being able to be a sustainable producer of clean energy to drive our operations has allowed us to become more attractive to our retail and foodservice customers, giving us greater market access."
He tells the story about when head buyers from two large foodservice customers visited Limoneira's facilities after its first solar investment. "Their reaction was almost disbelief, they both came back and said they wanted to buy their citrus from Limoneira," says Edwards. "That gives us the confidence that investing in clean energy was not only the right thing from an environmental perspective while also providing value to our shareholders, it also [helped us to] capture greater patronage and even pricing with customers who were willing to work with us."
Even the school field trips that Limoneira sponsors as part of its commitment to developing its communities return a myriad of value to the company. Visiting schoolchildren love seeing the herd of miniature English sheep that "mow" the dust-busting grasses under and around the solar arrays, Edwards reports, but there's more.
"We bring school kids in to talk to them about how the energy we produce fuels the foods we grow and they find in their supermarkets," says Edwards. "This helps our large-scale ag operation to relate with the community around us... And when they leave, they tell their moms they want them to buy Limoneira lemons."
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Limoneira Grows Along With Vietnam
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The Vietnamese economy is expected to become the world's 21st-largest by 2025. HSBC Holdings, the British multinational investment bank has predicted that Vietnam's total GDP would surpass those of Norway, Singapore and Portugal by 2050. It is also predicted that Vietnam could be the fastest-growing of the world's emerging economies by 2025, with a potential growth rate of almost 10% per annum in real dollar terms.
In 2019 Limoneira established a Southeast Asia Regional Sales office in Ho Chi Minh City, Vietnam lead by Francis Lee, Limoneira's Asia Pacific Regional Manager.
"Limoneira has been exporting to the Asia Pacific region for more than 60 years says Alex Teague, Chief Operating Officer at Limoneira. "The growth of both established markets and emerging markets is a key component of our One World of Citrus strategy. Francis' knowledge of the entire region is extensive".
"Given the significant growth and the dynamic nature of the Southeast Asia markets, there is a real benefit to having more local representation to extend our reach into local foodservice and retail customers," says John Carter, Vice President of Global Sales at Limoneira. Our local presence is a function of our overall growth in Asia.
Francis notes that "Limoneira has a great reputation and several strengths that resonate with customers including fast, real-time, customer service, vertical integration, sustainability leadership and their longevity in the market".
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The Month of Love With Limoneira
Limoneira Spokesperson, Megan Roosevelt introduces sweet, delicious, and healthy meal ideas that you will love
February is known as the month of love and this month we're loving some of Megan Roosevelt's delicious recipes that we're excited to share with you.
Gluten-Free Blood Orange Donuts will keep everyone at your table happy whether they are gluten sensitive or not. Blood Orange Heart-shaped Cookies will provide an assist in lifting your Valentine's Day festivities and 3 Heart Healthy Citrus Breakfasts will keep your energy up and provide some options for the perfect start to any morning.
Don't forget to subscribe to
Limoneira's YouTube channel
- videos with more great recipes, tips, and tricks not detailed in this release will be added weekly.
Gluten-Free Blood Orange Donuts
- 1 1/2 cup of Bob's Red Mill Gluten free 1 to 1 baking mix
- 1/2 cup of brown sugar
- 1 tsp of baking soda
- Juice from (1) Limoneira lemon
Blood Orange Heart Cookies
- 2 cups of almond flour
- Zest from (2) Limoneira blood oranges
- 1/4 cup of melted coconut oil
- 1/4 cup of maple syrup
Navel Orange Avocado Toast
- 1/2 Limoneira navel orange
- 1 avocado
- 1 tbs of fresh squeezed Limoneira lemon juice
- 2 radishes
- 3 slices of your bread of choice
Limoneira has also partnered with additional global chefs and mixologists, nutritionists, and beauty lifestyle and green cleaning experts to share their knowledge with the customers of our grocery and foodservice partners around the world. Their biographies can be found on
Limoneira's website.
About Megan Roosevelt and Healthy Grocery Girl ®
Megan Roosevelt is an internationally published author, cooking show host and producer as well as a nutrition expert for regional and national television and magazines. In addition to being a plant-based Registered Dietitian, Roosevelt through Healthy Grocery Girl® provides her extensive audience with online cooking videos and says, "I love helping people get healthy in ways that are realistic and fun".
Roosevelt is the spokesperson for Limoneira's Take a Healthy Stand- Nature's Pharmacy™ educational campaign and says, We all know that citrus is among the healthiest products people can integrate into their diets". Take a Healthy Stand-Nature's Pharmacy™ highlights a variety of ways that lemons can be integrated into consumer's lives. These include recipes, natural cleaning, beauty and health tips as well as lifestyle applications.
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Limoneira's Healthy Kids Master Chef and Gardening Kits Provided for United Fresh's Fresh Start Conference
The FreshStart Conference is the United Fresh Start
Foundation's annual event where attendees from across the fresh pr
oduce industry kick off the year working towards a common goal: to increase fresh produce access for kids and families. Attendees jump-started their year by learning how their businesses can grow opportunities to serve the next generation of consumers and their families.
Limoneira supplied our Kid's Master Chef Kits and Gardening kits for this great event's annual Bids for Kids silent and live auction.
Master Chef Kit:
These delicious little Master Chef Kits ensure that your child gets a jump start as the next celebrity chef. Little chef hats and aprons provide the professional career touch. Miniature rolling pin, whisk, serving spoon, spatula and measuring spoons - the necessities that got Wolfgang Puck and Alice Waters off and running are also here. Limoneira kids recipes are included for preparation for the next nutritious fun family feast.
Master Gardening Kit:
Let your kids get a jump start on gardening success with this fun, educational and "green" kit. Each garden kit contains one packet of lemon herb seeds, 2 small eco-friendly biodegradable pots, garden gloves, Agromin soil, small garden shovel, garden rake, garden trowel and kid's educational activity book. Children will love watching their own herbs spring to life with this easy - to - plant - and - grow set.
This kit provides a fun way for learning about life cycles, plants and responsibility.
To find out how to purchase these kits for the young professionals in your home, please visit marketing@limoneira.com.
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Getting Your Employees Healthy-Limoneira's Fresh Focus Program Introduced at Investor ICR Conference
The ICR Conference is a unique platform where public and private company management teams, institutional investors, sell-side research analysts, investment bankers, private equity professionals and select media connect with one another with the goal of understanding consumer trends and public company prospects as the year begins.
Receiving the benefits of great information at conferences requires focus and feeling parched can make the mind wander. Attendees of the recent ICR Conference in Orlando received some thirst-quenching advice. It was suggested that if they thirsty and searching for a healthy and delicious alternative to soft drinks or coffee, look no further than Limoneira's Fresh Focus™ citrus-infused water stations at each end of the foyer!
In addition to an amazing fresh flavor, this citrus water has zero calories and is packed with Vitamin C and antioxidants to boot! Winter is a prime time for catching all manner of nagging ailments like colds and coughs, so grab a cup or fill up your water bottle! You'll be quenching your thirst and bolstering your immune system in the process. Come stop by one of Limoneira's Fresh Focus ™ dispensers at either end of the foyer, grab a drink and learn more about Limoneira and its "Take a Healthy Stand" mission today!
Limoneira provided the citrus fruit for these stations and CEO Harold Edwards and CFO Mark Palamountain presented at the conference.
About ICR
Established in 1998, ICR partners with companies to execute strategic communications and advisory programs that achieve business goals, build awareness and credibility, and enhance long-term enterprise value. Today, ICR is one of the largest and most experienced independent communications and advisory firms in North America, maintaining offices in New York, Norwalk, Boston, Baltimore, San Francisco, San Diego and Beijing.
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FRESH FOCUS™
and The Benefits of Drinking Lemon Water
Many health practitioners note that water is a nutrient that our bodies need that is present in liquids, plain water, and foods. All of these are essential daily to replace the large amounts of water lost each day. Kaiser Permanente nephrologist Steven Guest, MD said "Fluid losses occur continuously, from skin evaporation, breathing, urine, and stool, and these losses must be replaced daily for good health.
There Are Even Further Benefits To Drinking Water With Lemon Juice
Adds flavor to regular water
An excellent source of Vitamin C
It's good for the skin
Helps balance pH
Aids in weight loss
Freshens breath
Removes toxins from the body
It's good for teeth and gums
Reduces bloat
Aids in digestion
What's PH And Why Does It Matter?
Our bodies are smart-they tell us what they need, and when they're in an alkaline state, the body is in balance. Too much acid in the body (from stress, poor sleep patterns, improper diet, etc.) can cause problems such as chronic fatigue, allergies and arthritis.
A blood pH level of 7.0 is neutral, A pH below 7.0 is acidic and a pH above 7.0 is alkaline. Human blood pH should be slightly alkaline (7.35 - 7.45) If blood levels are consistently above or below this range, negative conditions can exist.
An acidic pH can occur from an acid-forming diet, emotional stress, toxic overload, and/or immune reactions or any process that deprives the cells of oxygen and other nutrients. The body will try to compensate for acidic pH by using alkaline minerals. If the diet does not contain enough minerals to compensate, a buildup of acids in the cells will occur.
An acidic balance will decrease the body's ability to absorb minerals and other nutrients, decrease the energy production in cells, and decrease the body's ability to repair damaged cells.
Click here to learn more about Limoneira's Fresh Focus ™ program and how you can get your employees healthy.
A six-week study of 50 companies in Central and Southern California demonstrated a great value proposition. Health, balance and great taste for less than coffee!
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Limoneira Participates in Duke University's Chief Marketing Officer Survey
Duke University's CMO Survey was born out of three frustrations that became opportunities to further the field of marketing. First, marketing leaders are often not interviewed by the press or investors for their views on critical marketplace trends or company marketing activities. CMOs need more exposure to promote their role as marketing experts. Second, marketing leaders have limited benchmarks for marketing spending and actions within and across their industries.
Armed with better information, marketing leaders can build a stronger case for resources they need to grow their companies. Third, because marketing disclosures often are not required from companies, and because a great deal of marketing happens within business units but is reported at the overall firm level, marketing strategy scholarship often uses imprecise measures of marketing, which limits its implications.
With the support of Bob Lusch, then Chairman of the Board of the American Marketing Association, and colleagues at the Fuqua School of Business at Duke University, Christine Moorman began interviewing marketing leaders and CEOs to determine their most important marketing questions.
A set of seven topics and related questions was created and the first survey was administered in August 2008. By 2009, an electronic survey was in place and over time, three new topics examining social media marketing, mobile marketing, and marketing analytics were added. Questions are added in each survey to examine new and timely marketing topics. Because the goal of the survey is to improve the value of marketing in firms and society, reports are provided free of charge to all practitioners, educators, students, and members of the press. Current partners are Deloitte, the American Marketing Association, and the Fuqua School of Business.
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Limoneira's Cinco De Mayo Promotional Possibilities in Produce Business in UK
It's hard to believe but Cinco de Mayo is right around the corner. Produce Business UK reached out to Limoneira to find out how produce is used in this increasingly important holiday.
PBUK- How important are citrus fruits/avocados for Cinco de Mayo holiday entertaining? In what ways are consumers using citrus fruits/avocado in their entertaining?
LMNR- Cinco de Mayo is very important for avocados, and lemons offer the perfect complement for avocado and other Cinco de Mayo recipes.
Americans eat a staggering 81 million pounds of avocados on Cinco de Mayo. In the U.S., Cinco de Mayo is associated with drinking. The spicy, salty beverage makes up 14% of American cocktail spending. That's $2.9 billion spent on margaritas every year.
We have the perfect Meyer Lemon Margarita recipe that you can find on Limoneira's web site as well as several other great Cinco de Mayo recipes.
PBUK- How significant do you think this holiday has become an opportunity to drive sales/up-sell citrus fruits/avocados?
At Limoneira, we like to say "When Life Hands You Lemons, Make Cinco de Mayo".
It's important to note the history of this holiday. Cinco de Mayo's stature in the United States grew because it was a more convenient time for migrant farmworkers to celebrate. Southern California communities were some of the earliest to celebrate Cinco de Mayo in the U.S.
Mexican workers made up the majority of the labor force working in the thousands of acres of lemon groves. Lemons were grown in winter months but harvested in springtime, just in time for Cinco de Mayo.
The timing of the lemon harvest made Cinco de Mayo a well-timed holiday when people would welcome a reason to rest and celebrate and have a little more disposable income than usual, not to mention ideal weather. When May 5 fell on a weekday, employers paid workers early, and students were dismissed from class early to attend the festivities. As early as 1939, the Los Angeles Times reported, "All work in the citrus industry was suspended for the Cinco de Mayo holiday and several thousand persons came to participate in the celebration."
Businesses began promoting Cinco de Mayo as a day-long happy hour where consumers could down cervezas and margaritas when it recognized the demographic growth of the Latino population in the 1980s.
Advertising, sponsorship, and promotion of Cinco de Mayo events enabled businesses to tap into that young consumer market. The U.S. is such a diverse place and we're a nation of immigrants. This holiday that was initiated by Hispanics has now become integrated into calendars for all U.S. demographic groups. Everyone loves a party!
Celebrating Cinco de Mayo in the produce department can help drive sales
Cinco de Mayo is the second-largest holiday for avocados, trailing only to the Super Bowl.
The average retailer will promote avocados 24 times throughout a year, but 90% of retailers will promote this particular week.
Most retailers make strong efforts to promote consumption in this particular period, allowing consumers to cross-promote a variety of produce items that are ingredients or complement Cinco de Mayo recipes.
Retailers build big, festive displays and put a few recipes - especially drink recipe ideas near the displays.
Cinco de Mayo, as celebrated in the U.S., is about fun, and retailers do a great job with merchandising that conveys a sense of fun and encourages entertaining, It's a perfect opportunity for colorful produce displays including avocados and complimentary produce.
Strategically placing secondary displays both inside and outside of the produce department can also encourage impulse purchases and promote pairings with any type of product.
The liquor section as an ideal area to set up a secondary display. Placing a display of lemons and avocadoes in the liquor section is proven to increase sales.
The USDA has been encouraging everyone to make the Cinco de Mayo celebration a Citrus de Mayo affair by celebrating citrus' role in the holiday's food and culture.
From the limes, lemons and oranges used to marinate the carne asada, and the lemon we squeeze over our guacamole and tacos to bring out the flavor, to the delicious margaritas and the lime and lemon wedges with which we top an ice-cold beer, citrus is at the center of the festive Cinco de Mayo event.
Cinco de Mayo is just not the same without citrus.
SOURCES: Limoneira, Zocolo Public Square, Forbes, California Avocado Association, USDA
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It's a New Family Member for Limoneira Spokesperson Megan Roosevelt
Megan Roosevelt aka the Healthy Grocery Girl and spokesperson for Limoneira's Nature's Pharmacy-Take a Healthy Stand™ Educational Campaign is one talented individual. Not only is she articulate and passionate about getting people healthy, but she's also efficient.
Megan didn't miss a beat when she planned for her second child. She ensured that her business stayed on track and created wonderful content way in advance of the big day.
Leo Robert Roosevelt was born at home on Tuesday, Dec 31st at 9:35 pm and was a New Years' Eve Baby! Leo w
eighed in at 7 pounds 11.5 ounces. Big sister Ella was thrilled with the new arrival.
Kudos in the assist department to Father Aaron who also helped keep the family boat afloat!
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Limoneira's Winner Block
This month our lucky winner is Frank Hendricks from Santa Fe New Mexico. As our monthly winner, Frank Hendricks has won a Limoneira Orchard Fresh or Lifestyles Gift.
Congratulations Frank!
For your chance to win, make sure you're on our mailing list to be entered into our monthly drawing. To join
click here
or visit our website at
www.Limoneira.com.
Be sure to check out our other contests and drawings for additional changes to win prizes.
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