Armed with a professional background in organic chemistry and fruit processing, as well as trading, Greg Kaiser and Lisa Hiday-Baca made the decision two decades ago to launch a new venture of their own. They founded Encore Fruit Marketing, San Dimas, CA, as a way to connect prospective customers with a wide variety of processed fruit ingredients from all over the world.

The decision to concentrate on processed fruit ingredients was an important one. "There are a lot of broad spectrum brokers in food ingredients and we really wanted to differentiate ourselves, so we chose to focus specifically on fruit (and later vegetable) ingredients," Mr. Kaiser said. "In recent years we've seen a real interest from companies that want to incorporate natural, fruit-based ingredients in their retail products."

Breaking down its customer base, Mr. Kaiser said roughly 15-20% reside in the dietary supplement market, particularly the MLM segment, while the remainder reside in the functional food/beverage as well as mainstream food business. Currently, some of the most popular requests at the company revolve around the more exotic ingredients, such as acai, mangosteen, goji and sea buckthorn. He attributes most of their success to the stories behind the fruits, as well as their unique health benefits, as opposed to taste or flavor. "Many of these exotic fruits possess an acquired taste," he commented. "This is why there are so many flavor houses working with these ingredients to make them more palatable."

For Encore Fruit, each year is different in the fruit and vegetable business due to the constant variations in crop cycles. Per Mr. Kaiser, "Some years you see wholesale changes in items, or you see new ingredients come to market, along with new suppliers." He also credits a society constantly looking for something new and different for fueling the dynamic nature of this market.

Apart from that aspect of the business, Mr. Kaiser says the biggest change during the last decade relates to the shift in manufacturing to offshore, lower cost global suppliers. "These countries have become much more dominant in supplying the U.S. market," he said, adding, "And these are changes you have to deal with in order to be successful."

But the most dramatic change, according to Mr. Kaiser, is today's emphasis on food safety, documentation and facility inspections. "There is so much required to bring a qualified ingredient to the U.S. market." And while safety is important, Mr. Kaiser pointed out that these sometimes burdensome efforts can thwart innovation, especially for small to medium-sized companies. "In many cases, you can't even deliver a sample without a third party audit of ingredients," he said. "As a result, innovation cycles slow and new product introductions are stymied."

As far as sourcing new and distinctive ingredients, Mr. Kaiser turned his attention toward South America and Asia. "Right now, if I had to pick two regions, I believe these areas offer the majority of the new exotic fruits today," he said. "A lot of the tropical and subtropical fruits are very interesting to consumers. Plus, there is an interesting story to tell about their origin and unique health benefits." And consumers can now find some of these fruits in the fresh market, thus developing a greater awareness and appreciation for them.

As for how long he thinks America's love affair with exotic fruits will last, Mr. Kaiser is optimistic. "I think this particular category will remain interesting and robust for the next five to 10 years and longer." For now, he says this is one of the healthiest segments in the food market today. "Right now the major retailers are interested in developing functional food products with these exotic ingredients because of their attractiveness to consumers and the premium they can charge." -R.W.


Encore Fruit Marketing, Inc.
120 West Bonita Avenue, #204
San Dimas, CA 91773
Telephone: 909-394-5640
Fax: 909-394-5646
E-mail: sales@encorefruit.com
Website: www.encorefruit.com