By Lorrie Baumann
The original Virginia Diner, a roadside family diner along the main highway route across Virginia towards the beaches, Williamsburg and Jamestown, has an 87-year history as that place where you stop if you’re making one of those road trips, and while you’re waiting for your meal and letting the vibrations of the road work their way out of your bones, you get some free peanuts to nibble on. “In Virginia and the Mid-Atlantic, people know the restaurant. They have a fond memory of going to the beach on vacation, and we’re part of that experience. It gives people a fond memory of what they’ve done,” says Scott Stephens, Virginia Diner’s Director of Sales. “People have been coming here since the Depression and all through World War II. It’s the longest-running roadside diner in the state.” Customers loved it. Then they started asking if they could take a piece of that experience home with them, and suddenly, Virginia Diner was in the peanut business. “The mail-order business grew from people coming into the restaurant, picking up peanuts while they were eating, and asking if we could send them some,” Stephens says.
Those peanuts were locally grown – they’re a major crop for southeastern Virginia. “What we grow in this area is the Virginia-type peanut, and we only buy the super extra-large size,” Stephens says. “There are a lot of peanut companies in this area, but the Diner is the most well-known of all the regional brands because of the restaurant.”
Today, Virginia Diner has turned a passion for peanuts, especially the super extra-large peanuts, a bit of nostalgia and home team pride into a product line comprising peanuts and cashews with multiple added flavorings or chocolate covering packaged in cans with art that honors the team mascots for colleges around the country and the artistic vision of Norman Rockwell. “We started licensing in 2007,” Stephens says.“Licensing really took off for us, and it became dominant.”
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Salted Peanuts are the company’s best sellers, along with Chocolate-Covered Peanuts and Old Bay-Seasoned Peanuts. They do well in both gift shops and in specialty food markets. All of the company’s salted and unsalted peanut products are non-GMO Project Verified, kosher and certified by the American Heart Association.
Products packaged in college colors do especially well during back-to-school season, while the Norman Rockwell-themed packaging moves a lot of nuts during the winter holiday season.
Virginia Diner is currently exploring other licensing partnerships to expand the products’ appeal throughout the year as well as continuing to develop the existing line of interesting flavors. “All of it’s for the purpose of giving someone a reason to pick up the can, compelling them to buy peanuts,” Stephens says. “We have some year-round licensing opportunities that we’re creating to pull the product off the shelf and into the shopping basket.”
How can supermarkets attract the newest generation of grocery shoppers, the much-publicized Millennials, and turn them into loyal customers? That’s probably the biggest strategic question facing retailers today and new research suggests that the answer may be found in the fresh departments along the store perimeter.
A nationwide survey of more than 1,800 shoppers age 20-29 by the Private Label Manufacturers Association reveals that Millennials love food but want food done their way. Fresh and healthy foods are at the top of their shopping lists, while prepared and portable foods are also very popular.
These food choices reflect a distinctive way of eating. For Millennials, eating is largely unscheduled. They incorporate food consumption—whether meals, snacks or bites—into a range of everyday activities, ranging from work and play to exercise and commuting, according to the research in PLMA’s latest report “How America’s Eating Habits Are Changing.”
While Millennials purchase from many different sources, they frequently shop at supermarkets. And once inside the store they often head to the fresh dairy, deli and bakery departments. The study found that three-quarters of shoppers buy deli items in the supermarket where they do their regular grocery shopping, 77 percent buy dairy items and 59 percent buy bakery items.
Reflecting their on-the-go eating habits, one third “always or frequently” purchase heat-and-eat food from the supermarket, 29 percent pick up prepared or ready-to-eat food, and 27 percent buy grab-and-go prepared food items from a source such as a supermarket or convenience store. Millennials are a generation of nibblers and experimenters, so in-store sampling and demonstrations are popular.
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Home or away, meals or snacks, this age group is drawn to all things fresh. On occasions when they eat at home, including meals and snacks, 57 percent of them “always or frequently” opt for fresh fruits, 35 percent for fresh baked bread products, 30 percent for fresh prepared meals and 30 percent for fresh and chilled deli salads.
The PLMA study indicates there is likely to be a big payoff for supermarkets who successfully adapt to the new eating habits of the Millennials. Contrary to expectations, these shoppers are more loyal to their favorite stores than their parents. Nine of 10 do their regular grocery shopping in only one or two stores. This represents a dramatic departure from recent PLMA studies that saw consumers spreading their shopping among a multiplicity of stores.
This loyalty has important implications for store brands. As they select products, Millennials are well informed about brands, including store brands, and where foods come from. Nine of 10 say they are aware of the ingredients in the food products they eat and three of four read the nutritional labels on products. Their awareness of store brands and national brands is virtually the same at 84 percent, compared to 86 percent, respectively.
Commenting on these findings, Brian Sharoff, President of PLMA, said, “Store brands remain the retailer’s most potent weapon in developing strategies for this age group. It offers flexibility and opportunities to be creative with product assortment and concept without waiting for national brands. But it requires an understanding of what this age group likes and will buy.”
By Lorrie Baumann
The U.S. Department of Agriculture is getting ready to release new regulations intended to ensure that consumers who buy organic meat, eggs and dairy products are getting products that came from animals that were treated humanely. At stake is possible adverse reaction from consumers who believe that organic certification already includes animal welfare rules – which it does – but who might be disappointed in the way that the rule is interpreted and applied by various organic producers. “This whole question of animal care and animal welfare is really important,” said Organic Trade Association Executive Director Laura Batcha, who cited a recent study funded by OTA which found that among the randomly selected consumer families with children in the home who were surveyed, the Millennial generation takes into consideration, not just possible pesticide contamination, but also animal welfare, environmental benefits and possible exposure to antibiotics as criteria for their decisions to buy organic items.
The organic industry wants to get ahead of that potential backlash by clarifying the existing standards so that the rules mean the same thing to all organic farmers and can be enforced consistently and fairly across the nation. “What we’ve heard from the National Organic Program was that they’re intending to finalize the rule by the end of the year,” said Nate Lewis, the Organic Trade Association’s Farm Policy Director.
The proposed rule is opposed by the American Farm Bureau Federation, National Cattlemen’s Beef Association, National Pork Producers Council and the U.S. Poultry & Egg Association, which argue that the Organic Foods Production Act of 1990 doesn’t give the USDA the authority to prescribe practices to promote animal welfare. “With regard to livestock, the National Organic Program’s coverage should be limited to feeding and medication practices,” Indiana Pork Advocacy Coalition wrote in its comment on the proposed rule. “Animal welfare standards not relating to feeding and mediation are not within the scope of the [Organic Food Production] Act and should be removed from this proposed rule.” Organic industry advocates are anticipating that once the final rule is issued, its opponents may sponsor a Congressional lobbying effort to attach riders onto next year’s national budget and appropriations bills that could prohibit the USDA from spending money to enforce the rule.
Lewis anticipates that under the final rule, farmers will have one year to comply with most of its provisions, three years to comply with the rules for outdoor space requirements and five years to comply with the rules about indoor stocking densities. The three-year delay for the outdoor space requirement will give farmers who need to add land to their operations enough time to meet the three-year requirement for organic certification, and the five-year delay for indoor stocking densities will give poultry farmers enough time to get their money’s worth out of the barns they’ve already built, which are, on average, seven years old. They have a depreciation life of 12 years, so a five-year delay in the requirement that they provide more space will mean that they get the full 12 years of life that are allowed by depreciation rules.
The regulations for organic livestock already require that the animals must be raised in an environment that allows animals to express natural behaviors such as spreading their wings and having the space to lie down naturally. They must be provided with adequate health care and protection from conditions that can jeopardize the animals’ wellbeing, such as predators and blizzards. The proposed rule is designed to clarify those existing requirements so they’re enforceable and transparent, “bolstering consumer confidence and strengthening the market for organic products,” according to the USDA, which published the proposed rule in April of this year.
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The USDA received more than 6,000 public comments on the proposed rule, which would apply only to animals for which farmers receive organic certification, a voluntary program – it wouldn’t set up a mandatory standard for other livestock operations. According to the USDA, “the proposal aims to clarify how organic producers and handlers must treat livestock and poultry to ensure their health and wellbeing throughout life, including transport and slaughter.” It addresses the areas of the animals’ living conditions, health care, transport and slaughter. Among other things, it would clarify the existing regulation that organic livestock must have year-round access to the outdoors. This proposed rule specifies that “outdoors” means that the animals have to be allowed to go out into areas where they can see and feel the sun overhead and the soil beneath their feet – access to an open-air shelter or a porch with a concrete floor and a roof overhead wouldn’t qualify. Other provisions would set minimum standards for how much space is required for each chicken or turkey in a poultry barn, would require that organic pigs have dirt to root around in and would prohibit the transportation of sick, injured or lame animals for sale or slaughter and the use of cattle prods on sensitive parts of the animal.
The proposed rule follows recommendations from the National Organic Standards Board, a federal advisory committee of 15 citizens appointed by the Secretary of Agriculture that includes representation from the various stakeholders involved in the organic industry, including farmers, handlers, a retailer, a certifier, scientists, a natural resource conservationist and a consumer. The Board has been working on development of animal welfare standards for 10 years, Lewis said. “It’s all very transparent.”
The rule’s supporters include the OTA, which represents organic businesses, including growers, shippers, processors, certifiers, farmers’ associations and others involved in producing and selling organic products across the 50 states, and by The Humane Society of the United States, the country’s largest animal protection organization, which said in its comments on the proposed rule that “The HSUS supports higher animal welfare standards for the National Organic Program (NOP) and supports finalization of the proposed rule. In some areas, however, we advocate for stronger changes or wording clarification.”
Perdue Farms, which is the largest provider of organic-certified broiler chickens in the U.S., also supports the proposed rule, except that the company would prefer that the USDA lengthen the amount of time it would give broiler operations to reduce their indoor stocking rate from the 6 pounds (of poultry) per square foot that Perdue says is the current industry standard recognized by the animal welfare certifier Global Animal Partnership to the proposed rule’s level of 5 pounds per square feet to three years instead of the one-year timeframe specified in the rule. To adjust to the 5 pounds per square foot rule, the family farmers who supply Perdue Farms’ chickens will need to add at least the equivalent of 65 additional barns at a cost of more than $25 million to their operations. They won’t be able to do that with only one year’s notice, so if the rule goes into effect with the one year timeframe, they’d have to reduce their flocks, which would effectively reduce the country’s supply of organic broiler chicken by 20 percent, according to Perdue.
Nevertheless, “Perdue supports the NOP’s desire to strengthen what it means to carry the Organic seal. These proposed standards will significantly differentiate organic growing practices from conventional operations and meet consumer expectations that Organic production meet a uniform and verifiable animal welfare standard. We are with you; we need the 3 year timeframe to make it happen,” Perdue said in its comments to the USDA.