ARGENTINA - To view Walmart’s strategic moves is to look to the global scale in which the retailer reaches, the latest move being a step away from the Agrentenian market it has been active in for a quarter of a century. Walmart announced it is selling its business in Argentina to Latin American group Grupo de Narváez, entrusting new ownership to push the existing business even further.
“We are very proud of our Argentina business and associates as they’ve led and shown resilience throughout this year serving customers when they needed them most. We are excited by the local retail expertise the new owners bring to this already strong business, and we believe this deal creates the right structure to help it truly flourish for many years,” said Judith McKenna, President and Chief Executive Officer of Walmart International.
Grupo de Narváez has retail operations in Argentina, Ecuador, and Uruguay, bringing strong local expertise that makes the sale, according to Walmart, an exciting new chapter in the business’ 25-year history.
“We are very proud and excited about this new investment. We share the same values: a customer-centric philosophy, focus on operational excellence and commitment to the communities in which we operate. The company’s performance and dedication of its incredible associates through the COVID-19 pandemic have demonstrated the fundamental strength and resilience of the business, and we are thrilled to support the team, drive long-term growth, and create new opportunities for associates and suppliers across Argentina,” Fernando Minaudo, Grupo de Narváez CEO, said.
Under the new structure, Dolores Fernandez Lobbe will continue to support the business through a transition period, after which she will move into a new role within Walmart, which will continue to support the business through transition services and sourcing agreements under the new ownership. The company noted in a press release, however, that it will not retain an equity stake.
Walmart Argentina has grown to more than 90 stores and 9,000 associates under banners Changomas, Mi Changomas, Walmart Supercenter, and Punto Mayorista since it started in 1995. While Walmart Supercenters will be rebranded following a transition period, the Changomas, Mi Changomas, and Punto Mayorista banners will continue to serve customers in Argentina and the company said it will remain one of Argentina’s largest employers, continuing to work closely with suppliers to provide the best value for customers while maintaining its commitment to supporting domestic suppliers and small businesses.
The financial terms of the sale were not disclosed in the release, though both companies noted the dynamic retail environment and optimism for the chain’s continued success.
WENATCHEE, WA - When those in the produce industry are recognized for their contributions to the community it has a way of making our hearts happy here at AndNowUKnow. Our hearts are definitely smiling as CMI Orchards has announced that it has been recognized as the 2020 Washington Apple Education Foundation (WAEF) Volunteer Organization of the Year.
Every year the non-profit organization recognizes an organization for its volunteer work as it continues to make a difference in the community. CMI was presented with this year's award during a ceremony at its headquarters on November 4.
“CMI is honored and humbled to be named WAEF’s Volunteer Organization of the Year. We are extremely thankful for the time, effort, and enthusiasm our employees have demonstrated to help further the mission and work of such an impactful organization. WAEF is the leading charitable organization for the treefruit industry and works to champion and guide students through educational opportunities with direct links back to the industry. It is an honor to support this important effort,” explained Bob Mast, President of CMI Orchards.
In addition to providing financial support to the organization, CMI Orchards’ staff had 16 volunteers who supported eight events and activities with WAEF as it furthered its goal of impacting lives through education, according to a press release.
"The desire to make a difference is evident throughout this company. The genuine commitment of CMI employees that take time to connect with students, help with events, and serve on Foundation committees is inspiring. Our thanks to the individuals that volunteered this year and to the company for encouraging their involvement,” said WAEF Board Chairman Chris Willett.
CMI Orchards’ employee volunteer contributions include:
- December Career Tour Hosts: nine volunteers
- December Holiday Dinner Table Facilitators: two volunteers
- Scholarship Committee Members: three volunteers
- Student Mentors: two volunteers
- Virtual Learning Circle and Workshop Presenter: one volunteer
- Event Support: two volunteers
- WAEF Board of Directors: one volunteer
- Care Package Organization: four volunteers
“CMI Orchards was one of the earliest supporters of the WAEF mission. In fact, they joined with two other industry partners to create our first scholarship and have been a tremendous partner since,” explained WAEF Executive Director Jennifer Witherbee.
Annually, WAEF relies on the help of over 200 volunteers as they provide outreach and support to recipients of the Foundation’s scholarships. CMI Orchards and its employees have played an integral role in helping shape the lives of those involved with WAEF, and continue to do so.
We would like to thank CMI Orchards for continuing to go above and beyond, setting an example for the produce industry. We would also like to congratulate the team on this honor.
SAN MATEO, CA - Sometimes it's worth rethinking your central operations in order to continue growing a business. Walmart recently took a closer look at its source-to-pay process and ultimately decided to make a change. Expanding its partnership with Coupa Software, a leader in Business Spend Management (BSM), the retailer hopes to enhance visibility into its global spend, create better efficiencies across its business, and drive incremental savings in the company's end-to-end procurement process.
"Today, we have multiple, complex procurement systems across our business. Coupa's unique technology solution will help us optimize and harmonize our source-to-pay processes, providing cost savings, a simplified system and greater ease of use," said DK Singh, Chief Procurement Officer at Walmart.
Walmart selected Coupa to leverage its modern and comprehensive platform, industry-leading source-to-pay and contracting solutions, and like- minded focus on delivering the best value to its customers. The retailer currently uses Coupa to optimize the sourcing of significant third-party spend in North America, according to a press release.
The two will now embark on a phased rollout to expand adoption of the Coupa BSM Platform with procurement and advanced management solutions. This will help Walmart to not only optimize spend for highly complex sourcing events and categories, but also drive incremental savings through spend efficiencies.
"We are thrilled to be selected as Walmart's Business Spend Management provider to help optimize performance, visibility and control, and value across their spend and contracting processes," said Rob Bernshteyn, Chairman and CEO at Coupa. "We look forward to bringing the same cost-conscious mindset to their business spend activities that they employ through their omni-channel, everyday low price approach to serving millions of customers each week."
How will this strategic move continue to drive growth for Walmart? Stay tuned as ANUK reports.
SPARTA, MI - I will never forget my kindergarten trip to an apple orchard, learning perhaps for the first time where my food came from by exploring beautiful orchards and dipping apples into a vat of caramel for my very own treat. With a new partnership and new packaging, fourth-generation grower Applewood Fresh® is ensuring the students of 2020 make fruitful memories of their very own despite extenuating circumstances.
“Right now, it’s obviously not possible to physically offer field trips to students to see the wonderful operations behind Applewood Fresh’s uniquely delicious Michigan apple crop. We were not going to let that stop us from giving them the same field trip experience virtually!” Antonia Mascari, Vice President of Marketing for Applewood Fresh, explained.
The grower has teamed up with known produce influencer The Produce Moms® to introduce co-branded apple packaging just in time for the holiday baking season.
In addition to being resealable for 3 and 5 lb increments, as well as featuring popular Applewood Fresh Michigan-grown apples riding in the back of The Produce Moms car filled with The Produce Moms’ characters, the new packaging features a way to bring virtual classrooms to the orchards via QR code.
“At The Produce Moms, we have a resounding increased demand for more virtual education content as well as virtual experiences focused on fresh produce. People of all ages, in any part of the country, where Applewood Fresh and The Produce Moms co-branded apples are sold, will be able to ‘travel’ to Michigan to learn more about how apples are grown. Our suite of downloadable lesson plans not only incorporates fresh produce into the virtual or in-school classroom, but also fulfills pre-kindergarten through third grade national academic standards,” Lori Taylor, CEO and Founder of The Produce Moms, pointed out. “With this new packaging we’re bringing the Michigan apple farm to the consumer with a unique educational tie-in!”
The QR code serves as a call to action, according to a press release, linking consumers to an online treasure trove of curriculum perfect for distance learning, including activity sheets and the grower’s pièce de résistance—a virtual online field trip to a Michigan apple farm and production facility.
“Educators and parents are looking for more ways to enrich the Zoom classroom, and virtual field trips are wildly popular right now,” Mascari concluded. “We believe visiting a Michigan apple orchard online through our packaging will appeal to everyone, not just students!”
Distribution kicks off in the Midwest next week as the new co-branded bags begin shipping Monday, November 9, with room to expand south following demand. As baking season sets in and the 2020 syllabus seeks freshening up, this seems a strong and innovative way to launch your produce into any classroom!
HOUSTON, TX - As COVID-19 continues to force companies across all industries to be nimble with their strategies, Sysco has begun to implement changes as it now looks to divest its 106-acre property in Houston, Texas. Sysco has partnered with JLL to list the property, originally purchased in 2010, for sale.
According to an article from the Houston Business Journal, JLL has not disclosed the price of the property on its listing, but it was valued at $28.4 million on January 1, based on Harris County Appraisal District records.
Previously owned by Hewlett-Packard, Sysco purchased the property in 2010 to establish a shared services facility for its North American Distribution centers. Based on JLL’s listing, the property has 94.11 usable acres and also includes a vacant 660,717-square-foot building standing on the property.
Although affected by the ongoing pandemic, Sysco beat out estimates of $11.75 billion for its most recent quarter revenue, recording $11.78 billion. Sysco also recorded net earnings of $216.9 million, which surpassed analyst estimates.
Although the motivations behind Sysco’s divestment are not completely clear yet, what will the company’s future strategy look like? ANUK will continue to report.
LAGUNA NIGUEL, CA - Some companies simply ride the waves of change. Others make them. With organics on a skyward trajectory, LIV Organic Produce is one of those key operations making waves this year as it invests in its key categories and evolution with the introduction of a new member to its forward-thinking and innovative Sales and Grower Relations team, industry veteran Ken Rutledge.
“I am very excited to be a part of the team at LIV Organic Produce,” Ken tells me, diving into his goals. “The main priority in this position will be planning, designing, and implementing a strategy to expand organic farming and packing opportunities in the Pacific Northwest, beginning in Washington. This incredible investment will allow LIV Organics to continue to enhance year-round supplies of onions and potatoes for our customers."
In Ken’s new role, he will oversee grower relations for onions and potatoes and so much more.
One of the greatest motivations for joining the LIV Organics team for Ken was the company’s commitment to strong relationships with its growers.
“Relationships are critical to any business’ success, and LIV Organic understands this,” Ken reflects. “There are great things in the works, and I can’t imagine growing my career anywhere else but with LIV Organic Produce."
And, the feeling is mutual. With passion to rival the most driven in the industry, Ken not only aligns with the company’s values, but has a keen eye for the strategic evolution that LIV Organic is looking for.
“We are incredibly excited to welcome Ken onboard. His knowledge and expertise in organic potatoes and onions further exemplify LIV Organic’s commitment to the future of our vertically integrated growth,” Co-Founder Anthony Innocenti shares.
Ken brings nearly a decade to his role with LIV Organic, cultivating his knowledge with companies from Wong Potatoes and Chin Farms to CSS Farms in Pasco, Washington.
“My experiences in the industry so far have been invaluable, and I have learned how large and small companies work to impact the industry throughout the world,” Ken says. “Now, I have the amazing opportunity to jump in with a young and nimble company that I am sure is ready to do some really great things in the fresh produce space, and I am excited to be a part of it all.”
With the times a-changing, companies must follow suit in order to thrive and LIV Organic Produce is riding a full-scale wave of change as it maps out a future primed for success.
THE NETHERLANDS - A new strategy is leading growth for Ahold Delhaize as it enters 2021. The company announced today that it has authorized a new €1 billion ($1.17 billion) share buyback program. This is expected to build on the strength the company continues to see in its business model.
Additionally, the company has reported strong quarter three results with net sales at €17.8 billion (around $20.8 billion USD), which is up 6.8 percent or 10.1 percent at constant exchange rates. Ahold also announced initiatives to solidify its position in the local omnichannel market in 2021 and beyond.
"We continue to adapt to changes we are seeing in consumer shopping patterns and behavior,” said Frans Muller, President and CEO. “Over the coming years, we will invest in our business to solidify our position as an industry-leading local omnichannel retailer and increase our share of the consumer wallet. We will find ways to improve our online productivity and are on track to achieve the €1.9 billion ($2.23 billion) cumulative cost savings target by 2021. To benefit all of our stakeholders, we aim to strike the appropriate balance between investing in the health and safety of associates and customers, supporting our local communities, prioritizing environmental, social, and governance (ESG) initiatives, and returning capital to shareholders.”
Maintaining a balanced approach between funding growth in key channels and returning excess liquidity to shareholders is part of Ahold Delhaize’s financial framework and supports its Leading Together strategy. As COVID-19 continues to pose challenges, Ahold aims to strike an appropriate balance between important investments in additional safety measures, enhanced associate pay and benefits, and significant charitable donations, which has thus far resulted in approximately €470 million ($555.44 million) in COVID-19-related costs year to date.
According to a press release, the purpose of the share buyback program is to reduce the capital of Ahold Delhaize, by cancelling all or part of the common shares acquired through the program. The program will be executed within the limits of relevant laws and regulations, the existing authority granted at Ahold Delhaize’s 2020 annual general meeting of shareholders on April 8, 2020, and the authority (if granted) by the 2021 annual general meeting on April 14, 2021.
Ahold Delhaize will provide regular updates on the progress of the program by means of press releases. To read the buyback report in full, please click here. And to read the financial details of the quarter three release, please click here.
Keep coming back to AndNowUKnow as we report on the latest across the retail sector.
GERMANY - With the rise in at-home cooking, meal-kit delivery is also seeing a boost in demand. German meal kit delivery firm HelloFresh is one such company facing the increase in interest and has announced it will be expanding capacity to keep up with a surge in demand for its products in the United States.
“The trend toward eating more meals at home accelerated during the pandemic, and we consider the key drivers for this to have become permanent,” Chief Executive Officer Dominik Richter said.
HelloFresh, which considers the United States its key market, delivers pre-portioned meal ingredients with recipes to subscribers. According to Reuters, sales worldwide more than doubled in the third quarter for the meal kit provider. HelloFresh reported sales of 970.2 million euros ($1.13 billion) for the third quarter. The upper end of the company’s own forecast range provided last month 968 million to 971 million euros, up 120 percent from a year earlier.
Half of the growth in sales in the third and fourth quarters was coming from customers spending more time at home during lockdowns, while the other half was growth the company would normally have expected organically, Richter explained on an analysts’ call.
For more information, click here to view HelloFresh’s quarter three results and here for the report.
How will HelloFresh’s growth continue as consumers seek different avenues for cooking from home? ANUK will continue to report.
LOS ANGELES, CA - Miracles do happen, and green ones at that. Recently, residents of Pattada Sardinia, Italy, welcomed the world’s first green puppy named “Pistachio.” Pistachio’s unusual green coloring captured the world’s attention, especially those over at Wonderful® Pistachios. Residents in Pattada are in for a treat as the company announced plans to donate a bag of Wonderful Pistachios to all residents in the city to celebrate Pistachio. The company also announced it will be donating a lifetime supply of Wonderful Pistachios to Cristian Mallocci, the dog’s proud owner who runs a small farm in Pattada.
According to the press release, news of Pistachio’s birth quickly traveled across the globe, and while his coloring is temporary, green is known for luck and Mallocci views his birth as a beacon of hope during this difficult time.
“We’re excited about the attention and joy the new green puppy named Pistachio is bringing to the global pistachio family and to our team at Wonderful Pistachios,” said Adam Cooper, Senior Vice President of Marketing. “To echo Mallocci’s sentiments, we could all use a little green hope and luck right about now, and while we wish Pistachio could join our team as a mascot, we’d like to express our excitement by gifting all of his 3,000 neighbors with Wonderful Pistachios.”
No stranger to pop culture moments, Wonderful Pistachios has worked with some of the biggest names in Hollywood and sports to promote Wonderful Pistachios over the years. Most recently, the company teamed up with boxer Jose Ramirez, 49ers’ Richard Sherman, and the iconic Sheldon the Tortoise.
Wonderful Pistachios are available in traditional in-shell and also easy-to-eat and no-mess Wonderful Pistachios No Shells, which also include Honey Roasted and Chili Roasted flavors.
More fresh produce and plant-based news are coming your way, so keep checking back to ANUK.
THE NETHERLANDS - BASF, an ag partner known for driving growth in research and development (R&D), has recently acquired ASL in a bid to continue expanding its breeding and seed production in France. ASL, known for its innovative melon breeding initiatives, will help BASF secure a leading melon breeding program. The acquisition is expected to close on January 1, 2023.
“For the global vegetable seeds industry, melon is an important crop. BASF’s vegetable seeds portfolio marketed under the Nunhems® brand already covers hybrid melon seeds,” said Vicente Navarro, Senior Vice President of BASF’s vegetable seeds business. “By acquiring ASL, we continue offering a highly innovative melon pipeline to our value chain partners and consumers. They are the ultimate motive of all our business activities and the reason why we want to make healthy eating enjoyable and sustainable by breeding new varieties that meet their expectations in taste and convenience.”
ASL, according to a press release, specializes in orange flesh type melons, such as the Cantaloupe and Charentais types. The seed production and breeding facilities near Avignon, France, will complement BASF’s existing network of 23 breeding stations for vegetable seeds worldwide and will be the first station for R&D activities located in France.
BASF noted that the transaction with ASL covers all assets, including seed production, intellectual property rights, germplasm, research and development facilities, and staff.
How will this shake up the melon market in the years to come? AndNowUKnow will continue to report.