Moreover, specialty stores abound; there are 140 La Michoacana stores across the state with more than 50 in Houston and dozens more in outlying suburbs, and there’s also Phoenicia Specialty Foods, a Mediterranean/Middle Eastern retailer with two locations in Houston.
The proliferation of Asian markets is gathering momentum as well, with Korean supermarket chain H Mart (two locations) and Japanese grocery store Seiwa, which opened in 2016 after testing a first location in Costa Mesa, California. There is also a 99 Ranch Market and a number of Vietnamese specialty stores across the city.
FRESH FORUM
What do you consider the most critical issue facing the Texas produce industry this year?Jorge Vazquez, Latin Specialties, LLC
A “perfect storm” of two opposing forces. On the one hand, industry consolidation along with regulation is making it more difficult to compete with bigger and better capitalized companies. Increased competition is causing a price war between big companies that is having a deflationary effect on the whole industry.On the other hand, however, shortages of labor, increased regulation, and irregular supply due to climate change are increasing the cost of doing business for everyone else in the industry.
Scott Blanchard, Tomato Management Corp.
I think it’s going to be the political climate. What’s going to happen with the rules in Mexico?Is President Trump going to allow the same flow of product to come in? Or is he going to make [Mexican shippers] mad so they slow the flow of product?
I’m feeling more comfortable because I’ve seen more opportunities as more produce is coming in…; I see a lot more opportunities and less red tape.
Shane Barzilla, Tropic Brokers, Inc.
The cost of transportation… If you have to increase a day or two in transport times, what are you going to do with sensitive product? There will be massive demand for team trucks, which can deliver product in two days.The East Coast market has teams running to Miami and New York from California. The cost is going to go way up since we’re already short drivers.
Even with an onslaught of new entrants, established grocers like H-E-B and Kroger are coming up with ways to attract new customers while keeping loyal shoppers happy. With so many options, both online and bricks-and-mortar, the challenge is to innovate.
