Tuesday, July 18, 2006

Dueling tomatoes

Competition is pervasive in American society and the government often takes action that distort the market place. Here's a little story about how a little company built a brand that enabled them to change the playing field. What makes this story interesting is that the brand has an unusual name - the UglyRipe tomato.

The Florida Tomato Committee (FTC), a group of competing growers sanctioned by federal law dating to the 1950’s, set all size and shape standards for tomatoes entering the US market from mid-October to mid-June. The competing growers claimed the UglyRipe was too misshapen and would damage the reputation of the Florida marketplace. I'm not sure how the UglyRipe tomato was acceptable in September but not acceptable in October, but growers convinced the FTC to limit sales during the northern winter season.

The UglyRipe tomato, developed over decades with over $3 million in research funding by Procacci Brothers Sales Corporation was previously forbidden for sale outside of the Florida winter growing region. However, during a three-year window when the FTC offered the UglyRipe a temporary exemption, sales skyrocketed as consumers across the country were afforded a fresh, tasty tomato during the winter. The growers moved to close the exemption, and for the last three years the tomato has been unavailable in the winter season. Can't stand the competition, get the government to limit your competitors.

Fortunately, people came to their senses and eliminated the restrictions on free trade. And this is within the US. Next winter, Americans will experience something they haven’t had for years - a delicious, homegrown style tomato in the middle of the cold months, thanks to a rule change offered by the Agriculture Marketing Service of the United States Department of Agriculture (USDA).

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