UNITED STATES - In May of this year, Amazon made retail tongues wag when people familiar with the matter reported that the e-tailer was looking at J.C. Penney as a potential acquisition. Building upon that rumor, the largest mall owner in the United States, Simon Property Group, has been in talks with Amazon to take over space left by increasingly out-of-demand department stores.
According to a report from The Wall Street Journal, Simon Property Group has been exploring with Amazon the possibility of using these department stores as new fulfillment centers or distribution hubs. People familiar with the matter noted that these talks have centered around the acquisition and conversion of stores formerly or currently occupied by either J.C. Penney or Sears.
Although uncertain how many stores are under consideration, these talks exemplify why Amazon has maintained its position as a retail tour de force. Utilizing the power of e-commerce with the strategic positioning of brick-and-mortar hubs, Amazon is one such competitor always looking to the future.
How will these potential centers help Amazon enter into new markets? Will we soon see grocery blend with traditional department outlets? AndNowUKnow will be here to report.
WASHINGTON, DC - As a part of its efforts to enforce the Perishable Agricultural Commodities Act (PACA) and ensure fair trading practices within the U.S. produce industry, the U.S. Department of Agriculture (USDA) has imposed sanctions on Double D Sales Company, Inc. (Double D), based out of Visalia, California, for failing to meet its contractual obligations to the sellers of produce it purchased.
Direct from the USDA Agricultural Marketing Service:
These sanctions include barring the business and the principal operators of the business from engaging in PACA-licensed business or other activities without approval from USDA. By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
Double D failed to pay $378,663 to three sellers for produce that was purchased, received and accepted in interstate and foreign commerce from July 2018 to September 2018. This is in violation of the PACA. Double D cannot operate in the produce industry until August 4, 2022, and then only after it applies for and is issued a new PACA license by USDA.
The company’s principal, Derrick Daniell, may not be employed by or affiliated with any PACA licensee until August 4, 2021, and then only with the posting of a USDA approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA approval.
The PACA Division, which is a part of AMS’ Fair Trade Practices Program, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. PACA staff also assisted more than 7,800 callers with issues valued at approximately $148 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
For more information and to read the press release in its entirety, please visit the link here.
WATSONVILLE, CA - California Giant Berry Farms recently came in full force for the first-ever PMA Foodservice: Delivered event. Foodservice and collaboration come to a head on a global stage, and Tom Smith, Director of Foodservice and Organic Sales, shared his experience and how the team is serving its category.
“It was great to hear from the industry on so many levels on what is most important to each of them right now in this new reality. Attendees from divisions such as corporate research and development to culinary to procurement and buying are facing a new set of challenges, and the grower-shipper community has to be a part of their solution,” Tom shared. “There are new limitations in place, and the grower-shipper community has to be looking at the opportunities we have to help the industry survive.”
With quality at the heart of the berry grower’s operations, California Giant is pushing forth in implementing advancements in food safety, packaging, and value-added applications. The grower is also bringing new items and ideas to the table to help kitchens utilize perishable products to reduce spoilage and shrink.
“California Giant hangs our hat on being a premium quality grower-shipper of all four berries year-round. We’ve put in a lot of time and hard work into building that reputation. It’s not an easy task to deliver fresh berries on a daily basis, but it’s one instilled by our owners, and we take pride in our growers and the work that they do to uphold that premier status,” Tom asserted. “Right now, we have to look at where there are other opportunities in the services we provide in order to alleviate the stress on the supply chain. We have to be listening, and we have to be willing to pioneer these challenges to provide real solutions.”
This type of forward-thinking opens the grower up to possibilities and solutions such as consolidation, cross-docking, and logistics to streamline the supply chain; product innovation to offer value-added items to cut labor costs in the kitchen; or packaging innovation such as smaller volumes or mixed cartons for use.
Since the start of the pandemic, our industry has banded together to face a common obstacle—bringing quality food products to consumers while adhering to safety measures. The collaboration between operators, distributors, and grower-shippers is as important as ever, and that collaborative spirit has spurred innovative thinking and adaptability for California Giant.
“We all have to find ways to continue to work together while we get through this,” Tom explained. “Relationships have always been the most important thing in this industry—that has not changed. If anything, they are more important now than ever before.”
Foodservice will continue to thrive thanks to the innovation and determination provided by industry leaders such as California Giant. Find out more that our industry has to offer right here on ANUK.
SOUTH CAROLINA - Publix’s innovative GreenWise Markets banner has tested the waters in multiple markets, most recently announcing plans for its first Georgia-based store and its fifth Florida-based store. As the grocer continues to build out its banner, new expansion strategies have come to light. Publix announced earlier this week that it had made the decision to close its two South Carolina-based GreenWise stores in order to target the Florida market.
"We have made the difficult decision to close both GreenWise Market locations in South Carolina," remarked Maria Brous, Director of Communications, in a statement. "Both locations were acquisitions that fit our needs at the time of opening; however, as our concept has evolved, the locations have space constraints (approximately 21,000 square feet) that will not fit our current vision for GreenWise Markets. We have shared this information with our GreenWise associates, and we are offering to relocate associates to neighboring Publix locations."
According to news source Iron Blade Online, the South Carolina-based specialty markets will officially close their doors later this month on August 29. The upcoming Florida location, however, is still full-steam ahead as Publix turns its attention to success in the state of Florida.
The news source teased that three additional Florida-based GreenWise locations may be in the works, with the grocer narrowing in on Fort Lauderdale, Tampa, and St. Augustine. The fresh-forward, natural foods banner has experienced booming business in Florida, and the upcoming South Carolina closures are merely the next step in Publix’s methodical expansion plans.
Stick with us at ANUK as we continue to cover the strategic GreenWise Markets expansions.
NEW ZEALAND - As they say, the numbers don’t lie. And this year, the numbers for T&G Global’s premium Envy™ apple supply are in. Further securing the category as a leading apple during the 2019-2020 Washington season—evident by double-digit growth in sales, volume, and velocity and strengthened retail partnerships—the company has created significant momentum for the New Zealand Envy crop which is available now.
“The phenomenal growth Envy achieved this past season has catapulted the brand to stardom, consolidating our strong position in the category and building foundations from which to continue to grow,” said Cecilia Flores Paez, Head of Marketing for T&G Global in North America. “Shoppers confirmed what we knew all along, Envy delivers the ultimate apple experience. The brand is driving high levels of preference and loyalty. One bite is all it takes.”
As Washington Envy volumes increased 20 percent, so did its retailer support, with increased distribution, stronger shelf space, and more robust and consistent promotional activity.
According to a press release, the retail feedback on Envy apples has been overwhelmingly positive, facilitating further growth for the variety and the apple category as a whole.
“Envy has proven to be one of those apples you can rely on. That sweet crunchiness makes it perfect,” said Anthony Chanka, Category Manager for Giant Food. “Once you put that apple in front of the customer, they’re very receptive, whether it’s for snacking, baking...we supported it tactically, but Envy can stand alone and do a lot of good.”
Chris Park, Director of Procurement at Lotte Plaza Market, an East Coast Asian-focused retailer, agreed, saying “Envy is truly the best apple I’ve tried, and, more importantly, my shoppers have tried. Envy is a destination in the apple set, and I have someone daily telling me how they can’t get enough, due to its unique sweetness and juiciness.”
Envy focuses on consistent, dynamic, and customized promotions with retailers, spanning all formats and regions, ranging from strategic merchandising programs to digital marketing and media to charitable partnerships to aggressive circular support.
Another high-quality Envy season begins in late October, featuring increased volumes, large bulk sizing (and increased pack options), high brix and pressures, and clean fruit. Volume is expected to reach more than five-million cases by 2025.
“We’re confident Envy quality will be maintained through its growth, by carefully chosen growers who follow T&G’s stringent standards and are technically supported, pack houses featuring state-of-the-art sorting equipment, and fruit that is shipped to higher standards than the industry,” Flores Paez said.
Key Envy partners, including Lubbock, Texas-based United Supermarkets, also look ahead to a bright future for the apple, within the category and among shoppers.
“It’s moving up the charts as a better selling apple, as most people give them a try,” said Joseph Bunting, United Supermarkets’ Produce Business Director, noting Envy has the right sweet and crunchy blend for his guests. “We think it will keep moving up the rankings as one of the best-selling apples, as some fade, near the top three or four.”
Envy is marketed by CMI Orchards, Rainier Fruit Co., and Oppy. Collectively, the marketers celebrate the performance of Envy, which competed with Honeycrisp, Cosmic Crisp, Gala, and Fuji in independent sensory testing, crediting retailer partners willing to showcase the apple despite the intensely crowded category. The trio anticipates high demand for the new crop which begins shipping in late October.
The apple category continues to be one to watch, so keep a tab open for us at AndNowUKnow for all of the latest and greatest.
ISSAQUAH, WA - Some of us choose to live in the now, but it seems that many of retail’s finest prefer to live in the future. Costco, for example, is always looking ahead. With each move the company makes, there is a methodical chain of events that are sure to follow. In its latest move, Costco acquired a pivotal property in Issaquah, Washington, for $6.4 million with plans for further expansion already on the horizon.
"I think we'll use the existing building for additional corporate capacity," Senior Vice President of Real Estate Dave Messner said of the facility which formerly housed a Barnes & Noble store.
According to Puget Sound Business Journal, the acquisition of this 1.5-acre property was announced yesterday, Wednesday August 5, and will be used to facilitate a future headquarters expansion. This follows another recent acquisition in which Costco purchased a nearby building which formerly housed a movie theater for $10 million.
Messner went on to note that each of these acquisitions are in addition to another of Costco’s ongoing projects, which includes a 1.2 million square-foot expansion. All of these buildings are now under construction, and Costco expects this most recent acquisition to facilitate an office building which will open in spring 2022. With room for 4,000 employees, the company plans to consolidate corporate employees to bolster the new headquarters.
Does Costco have even more acquisitions in the works as it champions this aggressive expansion? I’ve got my money on it, so stick with us at ANUK.
SANTA ANA, CA - As a leader in merchandising strategies, FreshSource has the inside scoop on how retailers can accept the challenges handed to them by the COVID-19 crisis and get ahead—even during times of uncertainty and market volatility. As the team at FreshSource shares, it is essential for retailers to pivot their game plans to address the new needs of today’s social distancing requirements and new consumer terrain.
Here are some of the crucial insights—straight from the mouth of FreshSource and its retailer partners—on the topics that are necessary to address in order to both pivot and evolve. The gold standard here is to anticipate the needs of the supply chain and the produce department, with an eye on the end consumer as well.
Don’t get left behind…
Retailers have been adjusting their game plan from day one, and will continue to do so for the unforeseen future. The new normal is here, and retailers need to meet the new safety demands and expectations created by the crisis with solutions, not inaction. There are still may OOS and manufacturers that cannot keep up in center store. Fresh is a great solution.
Set a pace and bar for fresh…
The produce industry and supply chain have been phenomenal at keeping fresh produce on the shelves for all customers. The produce industry has historically been faced with catastrophes like weather, crop diseases, and more. We have learned to overcome, and this has helped us handle the COVID-19 pandemic and set a standard on excellence and performance.
Packaged fresh products are impacting purchasing decisions…
Customers seem to be gravitating to packaged products. The question for merchandising will be integrated versus segregated. FreshSource is not sure if there is a right or wrong at this time, but the best in class merchandising will rise to the top, and FreshSource can help.
Finding a balance…
Some companies are simplifying the business and cutting out SKU’s to focus on the best-selling items that they can keep in stock—key word here is some. The problem is manufacturers spent years building up their variety (portfolios) to get a shelf presence in retail. It feels like a step backward for some of them, but the conversation may correct itself. However, you will never know without a bridge of communication. If you do not keep the dialogue open—both retailers and suppliers—the consumer’s buying behaviors will change before you have even caught your breath.
While there is a lot to chew on here, FreshSource and its retail partners are also sharing some of the best practices for retailers to keep their team, products, and shoppers safe.
- Plexiglas at the check stands
- No touch paying options at the check stands
- All employees and customers required to wear masks
- Designated employees constantly cleaning and sanitizing the carts, check stands, restrooms, and anything that will be touched by multiple people
- Taking temperatures and asking simple health questions to all employees
- Only allowing a certain number of customers in at one time to help with social distancing
Additionally, with the impacts of social distancing, merchandising provides that bridge between the product and the consumer in an effort to drive consumer loyalty and sales. With that idea in mind, FreshSource shared the insights and evidence that can help retailers better occupy the digital space.
- Online shopping has been a great way to avoid the physical parameters of merchandising during COVID-19 and get your brand out there
- Early adopters to curbside pickup, Instacart, and other delivery services have thrived—meaning this is another opening to create an opportunity.
- Retailers can promote their private label products online and get instant recognition. This is huge for them to build loyalty!
- Experts are saying we are heading for a recession and consumers will be looking for private label items that provide value. Again, a loyalty opportunity!
- Most retailers are thriving with sales right now. The question is who will win in the end when the sales fall off?
The big question that FreshSource is posing to its partners is: Will you adjust your game plan to accommodate the future shopping experience? Or will you get left behind?
Those companies that adjust will be the winners.
OXNARD, CA - Endurance to overcome even the greatest challenges: that’s what I think of when I think of this industry. Operators like Mission Produce agree with me, understanding the difficulties that have arisen due to COVID-19. Speaking with Patrick Cortes Sr., Director of Business Development, and Bryan Garibay, Foodservice Manager, I got a sense of how the company is working to support its foodservice operators and how PMA Foodservice: Delivered helped further this goal.
“One of our main goals in attending was to let the industry know that we are hyper-aware of just how much more challenging it is to operate during a pandemic,” Patrick noted. “Food cost, inventory management, and shrink have never been more critical. With that in mind, we wanted to explain the benefit of our new shelf-life extension technology, Avolast, which can help operators add a few additional days of shelf life to their avocados. We also demonstrated a wide variety of solutions that we can customize to help manage their inventory and supply chain.”
As the strategic approach to business has changed across the board, I asked Bryan how Mission’s approach to the show was altered, as well.
“It’s definitely a challenge when everything has to be done virtually, but we tried to approach it similar to an in-person event. We are a solutions-based company, so it was important to hear what needs are out there and customize programs around those needs. We wanted to drive people to our landing page to outline some of those solutions and reach out for more information” Bryan explained.
We continue to approach reopening foodservice operations—a happy day for both suppliers and restaurants. Bryan remarked that Mission’s strategy to support supply chain members is already in place.
“We want to make sure that the industry knows we are here to help and support them through this pandemic. Our industry-leading ripe network is perfectly set up to remain nimble and agile,” he commented. “We have provided solutions and suggestions like multiple order deliveries per week, multiple stages of ripeness, and smaller pack sizes to help manage inventory. We can customize a program to fit even the most difficult of supply chains.”
Honored to win the PMA Foodservice: Delivered “Best Served” solutions contest, Mission continues to strive each day to provide value throughout the supply chain.
“I know it might sound trite, but this too shall pass and we will be stronger. We are focused on delivering the best avocados, at the perfect ripe stage, when our customers need it,” Patrick concluded.
And that optimism is exactly how we overcome.
PHARR, TX - Another cargo of fresh produce was caught in the crosshairs of dastardly deeds. Yesterday, the U.S. Customs and Border Protection, Office of Field Operations (OFO) at the Pharr International Bridge found a commercial trailer hauling fresh broccoli containing $16,094,000 worth of alleged methamphetamine.
“This is a substantial amount of hard narcotics that our officers have detected and seized from drug trafficking organizations attempting to smuggle these drugs across our border,” said Carlos Rodriguez, Port Director, Hidalgo/Pharr/Anzalduas Port of Entry. “By preventing this drug load from reaching the U.S., CBP advances its border security mission, protecting our citizens and communities.”
According to its press release, the shipment was found on August 3 at the Pharr-Reynosa International Bridge cargo facility. A CBP officer referred the shipment for further inspection, which included a non-intrusive imaging (NII) system inspection that allowed the officers to discover packages of suspected narcotics concealed within the trailer.
The inspection continued into the following day when ultimately officers removed 1,561 packages of alleged methamphetamine that weighed 804.69 pounds (365 kg).
CBP OFO seized narcotics, the conveyance, and arrested the driver. Agents with Homeland Security Investigations (HSI) continue with the investigation.
We are truly thankful for the hard work the CBP OFO performs to keep our produce safe and healthy.
IDAHO FALLS, ID - If you’re from the U.S. when you hear “Idaho” the first thing that may come to mind is the crop the state is famous for—potatoes. Eagle Eye Produce, a top grower and shipper of the recognizable Idaho potato is ramping up its production with a new crop of russet, red, and yellow potatoes to bring consumers and retailers the sought after spuds.
“Growing conditions for this upcoming crop have been excellent,” said Coleman Oswald, Director of Sales. “We are enthusiastic about what we are seeing in the fields at this point, and we are eager to get this new season underway. In light of what we have seen thus far in 2020, we are hoping to have a very uneventful, smooth, and successful harvest.”
The yearly harvest has already kicked off, and Eagle Eye is working overtime to make sure that the most perfect potatoes possible are being shipped out. According to a press release, the company’s farmers are harvesting thousands of acres of crops and working to ensure that the potatoes are the right size, density, and texture.
Once the Idaho potatoes are harvested, Eagle Eye will roll out its new packaging styles, which include Harvest Select® half and half bags. The pack will be available for the red, yellow, and russet varieties of potatoes.
With a year-round growing program in full swing, and packing facilities throughout the country, Eagle Eye will be bringing quality potatoes to the produce aisle all year long. Further ensuring that consumers will be able to enjoy their favorite potato dishes no matter the season.
For harvest updates and new crop news, keep checking back with AndNowUKnow for the latest.