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P r o d u c e S h o w D a i l y S u n d a y, O c t o b e r 2 0 , 2 0 1 3 4 By Kei Tanaka, Vice President, Foreign Exchange Advisor, Bank of the West, and Steve Herrick, Vice President, Senior Trade Manager, Bank of the West Produce and fresh fruit have "gone glob- al," and even small businesses buy and sell internationally. Some try to eliminate the hassles and risks by selling COD and by doing transactions in dollars. COD sales can work for franchises and big box stores, but they could also cost you sales to credit-worthy buyers. Your dollars-only policy could eliminate potential customers who wish to pay for goods in their own currencies. Investigate the advantages of buying or selling your product in currency of the suppliers and customers. For example, an importer thinks it's easier to ask a producer in Mexico to invoice in U.S. dollars. However, the producer's costs are in Mexican pesos. If the producer takes on the peso/dollar exchange rate, he takes on the exposure to the exchange rate risk. If the buyer is able to contract all or part of the produc- tion in Mexican pesos, both the buyer and seller would have a fixed cost. The buyer would know in advance what his cost was going to be, and the seller would know what his income would be in his local currency. The buyer can manage the exchange rate risk by buying a forward con- tract on the amount of pesos he knows he will need to pay for the product. An American company selling its product overseas can quote prices in the buyer's local currency on a spot or for- ward contract basis. Typically you will be able to benefit from the effort of having managed the exchange rate risk for your customer. Hedging foreign currencies is avail- able primarily in major currencies such as the Mexican peso, Canadian dollar, INCREASE YOUR RETURN ON CROSS-BORDER BUSINESS WITH BANK OF THE WEST FORMAGGIO DEBUTS NEW JUST ADD LETTUCE ITALIAN CHEF SALAD An interview with Anthony Mongiello, "The Big Cheese"™ PSD: Just Add Lettuce™ was Formaggio's initial move from deli into the produce department, and has showed formidable success. This has led to a fourth flavor being added to the line. Tell us about this line and the new addition. AM: Just Add Lettuce 3D is the kind of product that I see as a truly consumer friendly item, something that can make our lives easier but without compromis- ing the flavor profile. Formaggio set out to create three different kinds of salads that we thought would be popular. We decided on three kinds initially and now a fourth, Italian Chef Salad, which includes Italian-style meats like pro- sciutto and soppressata, cheese, herbs and seasonings. Authentically old-world style and utter- ly delicious. Then there are our original three. Greek would be one of them. It's like a tradi- tional Greek salad – feta cheese, kalama- ta olives, red onion, fresh oregano, etc – everything you would want in a Greek salad in a restaurant. We have a Spanish Just Add Lettuce 3D which is absolutely one of the most flavorful ones we offer. There's such a nice vinegar bite that comes from the banana ring peppers. I Continued on Page 46 Continued on Page 51 Lee M. Oser CEO and Editor-in-Chief Lyle Sapp Senior Associate Publisher Director of Sales Kim Forrester Jeff Rosano Associate Publishers Lorrie Baumann Editorial Director Hayden Neeley Senior Associate Editor Jeanie Catron Associate Editor Yasmine Brown Keaton Kohl Graphic Designers Margarite Marquez Ruth Haltiwanger Customer Service Managers Jules Denton Paul Harris Ryan Harter Lynn Hilton Chuck Kenney David Lopez Account Managers Enrico Cecchi European Sales Produce Show Daily is published by Oser Communications Group ©2013. All rights reserved. Executive and editorial offices at: 1877 N. Kolb Road, Tucson, AZ 85715 520.721.1300/Fax: 520.721.6300 www.oser.com European offices located at Lungarno Benvenuto Cellini, 11, 50125 Florence, Italy. AN INDEPENDENT PUBLICATION NOT AFFILIATED WITH PMA