Pennsylvania’s famous capital city, Philadelphia, is alive with landmarks and historic figures ranging from Benjamin Franklin and Betsy Ross to Edgar Allen Poe.
In a metro area that thrives on its buzzing diversity and modern flair. In a city where the historic and contemporary merge. The Philadelphia Wholesale Produce Market is no exception and reflects the same energy as its eclectic hometown.
The hearth of the original wholesale produce market on Dock Street dates back to Colonial times; while the new high-tech market celebrated its fourth birthday this year on Essington Avenue and continues to ring in praise from vendors and customers alike.
AT THE MARKET Talking About Imports The PWPM has seen an increase in imports as product lines evolve. The swelling numbers in both variety and quantity are predominantly due to the region’s many ethnic communities.
Since the summer of 2014, John Vena, president of the nearly century-old John Vena, Inc., says the company has increased its volume of pears from China, and recently added both green and yellow plantains. “We have our own ripening rooms, so we’re able to control the process ourselves, which has allowed us to increase volume on a wider range of tropical roots and vegetables.”
Another receiver on the market, Mark Levin, CEO of M. Levin & Company, Inc., works to carry a full line of tropicals to accommodate all tastes and culinary influences. Some of the newer items the 109-year-old company imports include rambutan, white and red dragon fruit, mangosteens, and passion fruit. Although the company also procures coconuts, tomatillos, okra, and an extensive list of traditional Hispanic items, Levin notes that Korean, Chinese, and Russian commodities are also gaining popularity at the market.
“We’re continuing to offer staples in many Latin American, Caribbean, and West African diets such as yuca, chayote, calabaza, and others,” confirms Mike Maxwell, president of Procacci Bros. Sales Corporation. Although demand for avocados, mangos, and papayas has grown substantially in recent years, he believes we’ll see other “exotic and tropical produce skyrocket as population dynamics change and consumer preferences shift.”
This is not to say more ‘ordinary’ fruits and vegetables are not hot commodities at the market. Potatoes, onions, carrots and the like are still big sellers, and the kale craze is in evidence as well. “We definitely sell a ton of kale, over the past two years the volume has increased by 40 percent,” confirms Stephen Secamiglio, a partner at Colonial Produce, Inc.
Pennsylvania’s famous capital city, Philadelphia, is alive with landmarks and historic figures ranging from Benjamin Franklin and Betsy Ross to Edgar Allen Poe.
In a metro area that thrives on its buzzing diversity and modern flair. In a city where the historic and contemporary merge. The Philadelphia Wholesale Produce Market is no exception and reflects the same energy as its eclectic hometown.
The hearth of the original wholesale produce market on Dock Street dates back to Colonial times; while the new high-tech market celebrated its fourth birthday this year on Essington Avenue and continues to ring in praise from vendors and customers alike.
AT THE MARKET Talking About Imports The PWPM has seen an increase in imports as product lines evolve. The swelling numbers in both variety and quantity are predominantly due to the region’s many ethnic communities.
Since the summer of 2014, John Vena, president of the nearly century-old John Vena, Inc., says the company has increased its volume of pears from China, and recently added both green and yellow plantains. “We have our own ripening rooms, so we’re able to control the process ourselves, which has allowed us to increase volume on a wider range of tropical roots and vegetables.”
Another receiver on the market, Mark Levin, CEO of M. Levin & Company, Inc., works to carry a full line of tropicals to accommodate all tastes and culinary influences. Some of the newer items the 109-year-old company imports include rambutan, white and red dragon fruit, mangosteens, and passion fruit. Although the company also procures coconuts, tomatillos, okra, and an extensive list of traditional Hispanic items, Levin notes that Korean, Chinese, and Russian commodities are also gaining popularity at the market.
“We’re continuing to offer staples in many Latin American, Caribbean, and West African diets such as yuca, chayote, calabaza, and others,” confirms Mike Maxwell, president of Procacci Bros. Sales Corporation. Although demand for avocados, mangos, and papayas has grown substantially in recent years, he believes we’ll see other “exotic and tropical produce skyrocket as population dynamics change and consumer preferences shift.”
This is not to say more ‘ordinary’ fruits and vegetables are not hot commodities at the market. Potatoes, onions, carrots and the like are still big sellers, and the kale craze is in evidence as well. “We definitely sell a ton of kale, over the past two years the volume has increased by 40 percent,” confirms Stephen Secamiglio, a partner at Colonial Produce, Inc.
More Ethnic Produce As the area’s diversity grows and evolves, those on the produce market are no longer focused on only the demands of different ethnicities, but working with “adventurous shoppers” who wish to experience a broader range of cultural culinary options, says Maxwell. “It’s not so much about bringing new items into focus, though we’re always looking for new ones to introduce, it’s more about new ways to use these items to create excitement for consumers not accustomed to seeing or eating them.”
This is helped by cooking shows, social media marketing campaigns, and companies providing consumers with a wealth of preparation options and recipes. Prime examples include avocados, which continue to rack up sales, and mangos, one of the world’s most consumed fruits— just not in the United States.
MARKET FACTS
Philadelphia Wholesale Produce Market The massive, cutting-edge Philadelphia Wholesale Produce Market (PWPM) delivers in every sense of the word for those who make their livelihood in fresh produce. “We have the most modern market in the world,” boasts Mark Levin, CEO of M. Levin & Company, Inc. It is also the largest such market in the world as well, at 700,000 square feet, and unlike some wholesale establishments, it is open to the public.
Among the top achievements is an unbroken cold chain, with both the loading dock and sales floor kept at 50˚F every day, year-round. Merchants can further adjust temperatures in their individual warehouses to suit particular commodities. “If I were a shipper, this is where I would want to send produce,” says Levin. Not only can wholesalers keep product in premium condition, the market’s location is a huge advantage. It provides easy access to Canada and the tri-state area from where it rests in the northeast corridor.
Mike Maxwell, president of Procacci Bros. Sales Corporation, champions the market for its features as well: “We’re located near key ports, have optimal temperature control for product, and a great layout for customers to walk through.”
Contact Information 6700 Essington Avenue, Philadelphia, PA 19153 Phone: (215) 336-3003 Email: info@pwpm.net Website: www.pwpm.net
Hours of operation Weekdays: 10:00 pm to 1:00 pm (anytime by appointment) Peak hours: 4:00 am to 10:00 am Sunday 10:00 am to Monday 1:00 pm Closed Saturdays and July 4, Christmas Day, and New Year’s Eve. The PWPM is open to the public with a nominal fee based on vehicle size.
Todd Penza, in sales for Pinto Bros., Inc. at the market, is one of the wholesalers who has been selling mangos and observing a steady increase, due in part to consumer curiosity. “Our mangos have been growing; we’ve always specialized in them, and are finding that customers are more interested than before.” Among the varieties sold are Keitt, which Penza sources from growers in Puerto Rico.
Changing demographics drive Procacci Brothers to continually research what, how, and where consumers are eating, Maxwell says, to “help our customers win these shoppers over. We can help introduce these items at a low risk to our customers, and work with them to attract shoppers of different ethnic backgrounds.”
CHALLENGES Mother Nature & Weather This past winter, just like the one before it, was not so kind to wholesalers, retailers, or restaurants. Levin described it as “horrible,” with excessive snow and ice preventing many from getting to the market and participating in the daily ritual of buying and selling. Losses, even if only from one day, are difficult to take in the perishables industry, with its slim margins. “You never recoup that business,” he laments. “People will shop the next day, but they’re not buying double.”
Maxwell agrees it is an issue, but believes communication is key. “Our ultimate goal is to minimize the disruption and inconveniences,” he explains, “and remain transparent with customers about what’s going on around us.”
RETAILER & RESTAURANT SCENE
Philadelphia’s retail and restaurant landscape is evolving to include more fresh produce options in the urban region, increasing competition and reinventing the fast food and produce markets. Three notable recent developments are Fresh to Order, Everything Fresh, and MOM’s Organic Market.
Philadelphia’s Fresh to Order marks the first in Pennsylvania of the restaurant chain known for quality food available quickly and at an average price point of $10 for soups, salads, and sandwiches. Along with the restaurant’s debut in the summer of 2015, two new supermarkets have made an appearance on the map. Everything Fresh opened an organic specialty store last December, with plans to open seven more locations around Philadelphia ranging from 3,000 to 20,000 square feet, with a mission to provide fresh, organic produce at a good value.
MOM’s Organic Market, opening a 16,000-square foot store in downtown Philadelphia’s East Market redevelopment project, prides itself in environmental responsibility. Not only does the store offer food for a variety of health and environmentally-conscious diets (local and organic meats, sustainable seafood, gluten-free foods, and an all-organic vegetarian eatery), but also offers shoppers a few unusual customer service perks such as free electric car chargers and recycling for light bulbs, batteries, cell phones, and shoes.
Weather woes also affected growers across the country and into Mexico, at times disrupting or slowing supply.
Tom Curtis, president of Tom Curtis Brokerage, Inc. at the market, commented on excessive rain and heat damage in parts of Texas, which harmed parsley, dill, and cilantro crops, as well as conditions at times in Mexico and Florida, which led to higher prices. “Beans are ridiculously priced at $40, $50, and even $60,” he notes, adding, “peppers and squash are through the roof. The weather is causing everything to go through the roof.”
There were also problems with fruit. “Berries were a real problem in the fall with too much heat and too much rain,” Courtis explains.
And then there’s California, and its ongoing drought. “They’re growing less acreage, so we have to find alternatives,” says Curtis. And though he was able to find other suppliers in Canada and other areas of country to source from, it is proving difficult for some commodities, like cantaloupe and honeydew. “There aren’t many alternatives,” he admits, noting the company has been fortunate in being able to “supply customers from connections we’ve had for 20 years. California was the gold standard and now all of a sudden it’s not.”
Shipping & Transportation Levin commented on the high cost of transportation, especially with multiple pickups. He’s seen a trend toward consolidated buying with customers purchasing more items in one place to cut down on rising shipping expenses.
“Freight goes up and down,” points out Penza. “We shop freight on a daily basis to stay competitive.” He admits it can be rather difficult sometimes to cover costs, when freight rates climb. But he takes it in stride, saying simply, “It’s part of the business.”
For John Dohanicz, in buying and sales at G&G Produce, Inc., timing can be more problematic. “We can always get trucks,” he asserts, but many “want to go to the maximum amount of days to get to you—and right at the end, they get it there.” The reverse, he notes, is sometimes true as well, when a truck shows up early when no one was expecting it.
Traceability & Food Safety Traceability and food safety are not new issues to the produce industry, though the Food Safety Modernization Act (FSMA) and its myriad regulations can be complicated depending on who you talk to. For Filindo Colace, vice president of Ryeco LLC, it’s more about preparation, knowing the ins and outs of the various rules and regulations. “It’s not a major challenge, but just from a produce wholesale standpoint, understanding food safety standards and our responsibilities on the PWPM are important.”
Being able to trace back product to a particular lot and grower, of course, will provide peace of mind for vendors, retailers, and consumers. “From a traceability standpoint,” Colace says, Ryeco wants to ensure it can take its business “and our customer’s business to the next level so they can find anything they want. They can trace [product] back to the farm it came from in case of an outbreak.” In the past, depending on the type of produce business, he explains, few businesses had to deal with traceability issues, “but with FSMA, our role is changing.”
Labor Shortages For Philly’s purveyors of produce, labor is not the same type of challenge as it is for growers out west. Both Colace and Secamiglio say there are plenty of able-bodied workers out there, just few with the necessary skills.
“No labor issues with finding people,” confirms Colonial Produce’s Secamiglio. “The only labor issues we’ve had is finding good help.”
“I get hundreds of applications,” agrees Colace, “but the quality isn’t there. You just don’t see people with produce experience, or produce people looking for jobs. If someone in the industry has a good person, they do what they can to keep them. Finding good labor has been tough.”
GIVING BACK Despite the ups and downs of the wholesale world, merchants at the PWPM are driven to give back to their community, especially by donating food and trying to keep otherwise safe and edible—though imperfect—food from landfills. The PWPM donates between 1.5 and 2.2 million pounds of produce annually to a local group, Philabundance. Philabundance, the area’s largest hunger relief organization, distributes food to those in need, ranging from 20 to 30 million pounds annually.
Philabundance’s refrigerated truck makes daily stops at the PWPM, and some wholesalers on the market such as Procacci Brothers and M. Levin & Company, Inc. load items from their warehouse locations and coordinate additional donations through trading partners. Three years ago, Philabundance opened the nation’s first nonprofit grocery store called ‘Fare and Square’ in Chester, about 15 miles southwest of the city, erasing one of the Delaware Valley’s 35 food deserts in the process.
FRESH FORUM What keeps you up at night?
Stephen Secamiglio – Colonial Produce, Inc. What keeps me up at night? I love this business; there is no business like this in the world. It’s a challenge every day, and no one day is the same as the previous day. You never know what to expect doing this.
John Dohanicz – G&G Produce, Inc. Maintaining good integrity with good product on a consistent basis. It’s not a problem getting product, we just hope the quality of the product is consistent, that it comes in clean and consistent, so we can maintain good standards with our customers.
John Vena – John Vena, Inc. Besides the everyday challenge ofmanaging a small business, I spend a lot of time trying to determine what changes in shopping and shipping styles will mean to my business. As wholesalers, we face strong direct competition each day, but the indirect competition growing out of new and innovative technology applications is really daunting. Our biggest challenge is to maintain our relevance in the marketplace for our customers.
Mark Levin – M. Levin & Company, Inc. I buy the grapes, watermelons, berries, and one is always keeping me up at night—it’s produce and it’s perishable, so I’m always thinking about it. We treat it like ourchildren. For forty years, I’ve looked at every package and tried to make sure it leaves the same way it came in.
Todd Penza – Pinto Bros., Inc. I think the produce industry just needs to keep pushing to increase consumption. We sell the healthiest food in the supermarket, and the industry needs to get the next generation on board with enjoying fruits and vegetables.
Mike Maxwell – Procacci Brothers This business moves fast, so any number of factors will tend to stick in your mind in that regard. From products to packaging to service, we’re continually trying to innovate and be of the best value we can to our customers. This business and the consumers who affect it move fast, and we need to ensure we’re doing our best to move even faster.
Filindo Colace – Ryeco, LLC We want to be a full-line provider and small family business service—that’s what keeps me up. We want to move large amounts of produce and have the service of a mom-and-pop deli. We need good people, good technology, and shippers that supply year-round with quality items. I want my customers to have everything they need and no reason to go anyplace else.
Tom Curtis – Tom Curtis Brokerage, Inc. Weather and trucks: getting trucks with the least amount of problems, whether it’s loading, coming, or a responsible truck driver to check in if there’s a problem. In this day and age, the biggest sin is not calling. And the weather—I don’t think anyone in California thought it would be this bad five years ago.
CONCLUDING THOUGHTS When speaking of the challenges and obstacles faced by distributors, Levin jokes that his ‘dynamic personality’ is how he has gotten through the years. It is, however, less of a joke than any shared laughter may insinuate.
As Benjamin Franklin wrote, “Diligence is the mother of good luck”—and just like the generations prior to the many dors who share space at the Philadelphia market, they work hard to make their own luck.
Through character, charisma, and a continuous cultivation of relationships, the Philadelphia Wholesale Produce Market and its merchants keep their evolving supply of fruits, vegetables, and herbs fresh, healthful, and inviting.
