ESSEN, GERMANY - Just last week, we reported that German retailer Aldi opened its newest and largest distribution center in England. Aldi’s growth streak, however, is pivoting directions as recent news revealed the grocer is set to enter a $700 million AUD (about $471 million USD) sale and leaseback of a number of its logistics centers in Australia.
According to The Urban Developer, Aldi enlisted real estate firm JLL to sell the logistics centers, which are expected to reach a combined valuation of $700 million AUD and generate $30 million AUD (about $20 million USD) in annual income. The initial four Aldi warehouses, located along the east coast of Australia, will be sold and likely leased back in order to place proceeds back into the front line of its supermarket operations.
“We expect corporate sale and leaseback to be a significant driver in 2020, which will help corporates reinvest their capital back into their operating streams,” JLL Head of Capital Markets Tony Iuliano said.
The news site stated the move by Aldi comes as demand strengthens for logistic space, due to the growth of e-commerce and online retailing.
Where will Aldi focus on next in its strategic plan? Keep reading ANUK as we follow the newswire.
TAMPA, FL - This year, Shuman Farms’ own Sales Director, Brandon Parker, is serving as the Southeast Produce Council’s Chairman. With one of the industry’s first key events of the 2020 calendar being the council’s Southern Exposure, I was more than a little excited to catch up with the company’s President and CEO John Shuman.
“Obviously, we are excited to see Brandon’s vision of the produce industry making a difference come to life,” John begins. “This year's Southern Exposure theme, Make a Difference, is very important to us as we hold giving back as one of our company's four pillars and firmly believe in making a difference in the communities where our products are sold. Several of our programs, including Produce for Kids® (PFK), are designed to raise funds for important causes and organizations.”
Both Shuman Farms and PFK will be exhibiting at Southern Exposure this year, at booths #400 and #610, respectively. Together, they perfectly encompass the SEPC and what it stands for.
“At Produce for Kids’ booth, we will continue the conversation about how produce companies and organizations can give back and make a difference. Since our inception in 2002, we have donated over $7 million to those in need and more than 10 million meals through our work with Feeding America,” John details, sharing that PFK has several programs that produce suppliers and retailers can participate in.
Among them are:
- Produce for Kids Flagship Retail Campaigns
- Mission for Nutrition in March celebrating National Nutrition Month
- Power Your Lunchbox, helping families smoothly transition to back to school in August and September
- Healthy Family Project Podcast and Facebook Group, where PFK steps outside the world of produce to talk about other important topics impacting families’ mental and physical health
PFK will also host its annual reception on Friday, February 28, at 5 pm at the Tampa Marriott in the Florida Salons 1-3, celebrating another successful year with its tremendous partners, sharing the highlights of the year, and giving a sneak peak at what is coming down the line in 2020 and beyond.
“Our retail partners and sponsors will be in attendance and it provides us an opportunity to thank them for their continued support,” John says of the annual PFK reception before we dive into what to expect on the show floor for Shuman Farms. “At the Shuman Farms booth, we’ll be talking about the Vidalia® crop and our plans for the upcoming season, including how, this year, we will be focusing on the excitement of Vidalia season.”
Consumers wait eight months for RealSweet® Vidalia onions to hit store shelves and, when they do, John says the product brings a lot of excitement to the produce department. Visit booth #400 for several promotions to maximize that energy for the precious window that is Vidalia season.
And continuing the spirit of Making a Difference, John adds that June will bring RealSweet Vidalia onions in special bags supporting Feeding America.
“In the U.S., one in six children face hunger every day. We know that summer break, without school breakfasts and lunches, is a particularly vulnerable time for those in need. Through the support of our Feeding America bags, Shuman Farms will provide 50,000 meals to families and will continue to work with Produce for Kids to spread awareness about childhood hunger,” he shares.
To learn not just about human initiatives, but also ecological ones the company is implementing or growing, be sure to bookmark Shuman Farms and PFK when navigating your Southern Exposure schedule.
NOGALES, AZ - The grower/shipper Divine Flavor is currently looking to wrap-up the final shipments from its Peruvian grape partners and transition to its next growing region, Chile. Divine Flavor has started receiving the first loads of the season from Chile, primarily consisting of Thompsons, Sugraone, and Sweet Globes, among other greens.
“This year, we’ll have more Muscat Beauty, which is a great tasting hybrid,” said Gonzalo Mery of Santa Elena, Grower. “We’ve also planted more AUTUMNCRISP® and Sweet Globe, both being specialty and high-flavored greens. Krissy (a red variety) is another special one, having great size, sugar, and acidity. The flavor is quite special. The grape markets in the U.S. will continue seeing more of these grapes because the quality has been excellent and it’s a great tasting product.”
Last season in 2019, Chile exported over 70 million boxes, 60 percent of which were designated for U.S. markets, according to a press release. Despite drought concerns for the growing regions and an estimated 15 percent decrease in overall volume for 2020, Divine Flavor and its Chilean partners anticipate having decent volumes and more exclusive, high-flavored varieties for the North American retailers.
“This movement and our decisions are being backed up by data and testing blocks trials,” said Arturo Hoffmann, Commercial Manager of Don Ricardo. “Next season, we anticipate having 85 percent of our production to be of the specialty, high-flavored varieties.”
In a similar concept, Divine Flavor partners in Peru have also planted more high-flavored varieties. Divine Flavor grower, Agricola Don Ricardo, will be planting more hectors of the exclusive varieties such as the fan-favorite Jellyberries and Gummyberries.
The company’s season in Peru runs from October to the first weeks of February, while its regions in Chile go from January until April, with inventory holding off until the company’s highly anticipated first season of table grapes starting in Jalisco, Mexico. Consumers can find Jellyberries and Gummyberries in stores now.
Keep your eyes peeled for Divine Flavor’s premium grapes! For all the latest in produce and grocery, stick with us here at ANUK.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses operating out of Illinois, Maryland, New York, and Pennsylvania. These four businesses were sanctioned for failing to meet their contractual obligations to the sellers of produce they purchased from and for failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA) totalling to the cumulative amount of $101,620.
Direct from the USDA Agricultural Marketing Service:
These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from the USDA. By issuing these penalties, the USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
The following businesses and individuals are currently restricted from operating in the produce industry:
- Lurie Brothers LLC, operating out of Chicago, Illinois, for failing to pay a $26,163 award in favor of an Arkansas seller. As of the issuance date of the reparation order, Salvatore Cimino, Alex Dernis and John Dernis were listed as members of the business. Another principal of the business at the time of the order was Frank Cione. He has challenged his responsibly connected status.
- Central America Specialties Inc., operating out of Beltsville, Maryland, for failing to pay a $2,575 award in favor of a Florida seller. As of the issuance date of the reparation order, Benecio Reyes was listed as the officer, director and major stockholder of the business.
- A & A Vegetables Inc., operating out of Hicksville, New York, for failing to pay a $70,200 award in favor of a California seller. As of the issuance date of the reparation order, Amandeep Singh was listed as the officer, director and major stockholder of the business.
- Hunter Bros. Inc., operating out of Philadelphia, Pennsylvania, for failing to pay a $2,682 award in favor of a New Jersey seller. As of the issuance date of the reparation order, Frank J. Wiechec III was listed as the officer, director and major stockholder of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in the USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. The USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. 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 in the Fair Trade Practices Program in the Agricultural Marketing Service, 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, the 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 the USDA continues to support the fruit and vegetable industry.
For further information, contacts, and to read the press release in its entirety, please click the link here.
LOS ANGELES, CA - It seems that plant-based everything is popping up across the grocery store. The produce aisle, however, is plant-based in itself! Even so, The Wonderful Company is driving home the plant-based craze with its launch of a new multimillion-dollar marketing campaign that highlights plant-based protein. Spearheaded by Wonderful® Pistachios, the campaign emphasizes that the best protein is grown on trees, not bred or developed in a lab.
“As more consumers make changes in their diet to eat less meat, but simultaneously crave more protein, Wonderful Pistachios represents the perfect snack because it’s a real, whole food containing six grams of plant-based protein per serving,” said Adam Cooper, Senior Vice President of Marketing. “When it comes to plant-based protein, you can’t beat the original, and our new campaign drives that message home.”
The new integrated campaign features print ads, social media, digital, public relations, emails, and Wonderful Pistachios retail bins featuring imagery of pistachio trees. The bins provide retailers a lift in sales and will propel the campaign throughout 2020.
The brand will promote plant-based messages at events throughout the year, influencers will continue to share plant-based protein benefits with their followers, and the company will host a live virtual symposium dedicated to sharing the latest trends on plant-based protein with retailer partners, supermarket dieticians, and other nutrition experts.
Today’s savvy consumers have changed their perspective to reduce the amount of meat they consume, and it’s more than just a passing trend, according to a press release. 55 percent of consumers say their change is permanent, according to HealthFocus data.
At the same time, Mintel data confirms 75 percent of people are adding more protein to their diet. To attract these protein-seeking shoppers, new retail display bins—hitting store floors early this year—will stand out at point of purchase, drawing attention to the plant-based origins of Wonderful Pistachios and offering a solution to those hungry for a plant-protein-powered snack.
These efforts continue the momentum from the Plant-Based Nutrition Leadership Symposium, which was hosted by Wonderful Pistachios in April 2019, and drew an exclusive audience of nutrition experts for an immersion into plant-based nutrition science, culinary applications, and leadership dialogue, while celebrating pistachios in a plant-based context.
The entire campaign will ensure consumers know pistachios are one the highest protein snack nuts, and, unlike meat, protein-powered pistachios are naturally cholesterol free and offer the added benefits of fiber.
Who knew plants could become even more plant-based!? For more innovative campaigns popping up in the produce aisle, keep checking in with us at AndNowUKnow.
COACHELLA VALLEY, CA - As a kid, I always loved when my mom would boil artichokes as a side dish—not only because they are delicious, but because they provide a fun and simple eating experience unlike any other. Now that Ocean Mist Farms’ artichoke season is in full gear, retailers can tap into the convenience of fresh artichokes that will appeal to their consumers. To get a better sense of the current artichoke market, I spoke with Diana McClean, Senior Director of Marketing.
“We are in our winter artichoke season with the majority of production and harvest in the Coachella Valley with some in Baja California,” Diana explained. “Our artichoke production is year-round, seasonally, in four locations: Castroville, Baja, Coachella, and Oxnard.”
Ocean Mist Farms has perfected its proprietary seed varieties that grow in each location, and customers flock to the long-awaited return of its unmatched quality. The company’s superstar during this season is the Desert Globe Artichoke, according to Diana.
“We have promotional volumes through about mid March,” she said. “As the season progresses, our mid-sized artichoke volume will increase and those are perfect in the retail-ready packs. Quality has been excellent with a great crop of jumbo and large-sized artichokes (size 12 and 18). At this time of year, we are prepared for frost-kissed artichokes.”
The company has also started shipping the newest items in its Organic Artichoke product line. Each of the new packages contain two size 24 artichokes in either a handle bag or a recyclable corrugated clamshell. To highlight the kickoff of a successful season, Ocean Mist has launched a six week consumer sweepstakes to drive home artichoke consumption.
“Our Get Up and Groove Consumer sweepstakes has started off with a bang! With less than one week in, we have over 4,000 new consumer contacts,” Diana concluded. “This means we will gain much more consumer preference data to share with our customers about artichoke shoppers. Plus, we are driving a lot of traffic to our Destini locator page to ensure that consumers can find our products in a store near them.”
Retailers, be sure to stock up on Ocean Mist Farms’ premium supply of artichokes while they’re hot! For more categorical updates in the fresh produce sector, keep checking in with us at AndNowUKnow.
SAN FRANCISCO, CA - Grocery delivery is perhaps one of those innovations that is likely to stay. But how much of an effect does it have on everyday lives that attributes to almost $27 billion in spending? Dr. Robert Kulick of NERA Economic Consulting was curious about that himself, and he sought to measure the impact of what he dubs “The Instacart Effect” in his new study.
“Instacart is changing the way customers engage with grocery stores by creating a complementary online service that would be prohibitively expensive for traditional retailers to offer on their own. The result is increased grocery demand, which translates into higher grocery store employment and revenue. The data indicates that in 2019, ‘The Instacart Effect’ was responsible for an increase of more than $620 million in revenue and over 23,000 jobs in the grocery sector in California, New York, Illinois, and Washington. These findings demonstrate that Instacart has played an important role in helping the grocery industry compete in a challenging economic environment,” said Dr. Kulick. “It is often assumed that disruptive innovations necessarily displace traditional modes of commerce and employment. However, with Instacart the opposite is true. While Instacart is changing the way customers interact with grocery stores, it is an example of how innovation can benefit industries and their workers.”
According to the press release, the study demonstrates a robust relationship between Instacart adoption in local markets and employment and revenue in the grocery industry. Some key findings of the study include:
- Grocery Employment Increases When Instacart Enters a Market - On average, Instacart's entry is associated with a 4 percent increase in retail grocery employment. These roles are direct employees of grocery stores and include jobs such as cashiers, stocking associates, and deli counter clerks, among others
- Instacart Creates Net Grocery Jobs - In 2019 specifically, Instacart's adoption was directly responsible for more than 23,000 jobs across the metropolitan statistical area in the four states studied
- Instacart Drives Significant Incremental Grocery Revenue - Instacart increased incremental grocery revenue by over $620 million in 2019 alone
- "The Instacart Effect" is a National Phenomenon - The results indicate that the magnitude of "The Instacart Effect" is statistically equivalent for each state
As for “The Instacart Effect,” the study finds:
- In California, over 11,500 additional jobs were created and $337 million in incremental revenue
- In Illinois, over 3,400 jobs were created and $75 million in incremental revenue
- In New York, over 6,600 jobs were created and $154 million in incremental revenue
- In Washington, over 1,900 jobs were created and $56 million in incremental revenue
“Today in the U.S., grocery is almost a $1 trillion industry—but it’s only now going through its first big wave of tech innovation. Change in a business sector often comes at the detriment of incumbents, and we've seen this play out again and again across industries. But, it doesn't have to be that way. Since day one, our goal at Instacart has been to lift up our brick-and-mortar grocery partners and give retailers of all sizes an edge in an increasingly competitive industry,” said Nilam Ganenthiran, President of Instacart. “While we’ve long seen in our own internal data that Instacart can incrementally boost retail partner sales between 50 percent to 80 percent, this study shows that when Instacart enters a market the tides turn and ‘The Instacart Effect’ drives meaningful job creation and increased revenue for the grocery industry.”
Online food delivery is worth billions and is growing at an astronomical rate, according to PaymentsSource. Based on a study done by NPD Group, the site claims that restaurant digital orders (defined as meals or snacks ordered via mobile app, internet, or text message) have grown by 23 percent over the past four years and now represent 3.1 billion visits and $26.8 billion in spending. NPD is forecasting that digital orders will continue to grow by double-digits through 2020.
“Investing in an online retail experience is critical to the success of grocers competing for consumer attention today. The technology and fulfillment needs are complex, and the cost is prohibitive for many. But, with Instacart's support, more than 75 California retailers across 3,500 stores are now online, offering delivery and pickup services that meet the growing needs of their customers,” said Ron Fong, California Grocers Association President and CEO. “What Instacart is bringing to the state of California and the rest of the U.S. is a growth runway for brick-and-mortar grocers that deserve the opportunity to continue to serve their local communities for many generations to come.”
Instacart today partners with more than 350 popular national, regional, and local retailers to offer delivery from more than 25,000 stores across more than 5,500 cities in the U.S. and Canada. Instacart delivery is currently available to more than 85 percent of households in the U.S. and more than 70 percent of households in Canada.
With a reach like this, what will Instacart accomplish next? To read the full study, click here. Keep reading ANUK as we bring you more industry news.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failing to meet their contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA). The four businesses operating in Florida and Texas failed to pay a total of $277,523.
Direct from the USDA Agricultural Marketing Service:
These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from the USDA. By issuing these penalties, the USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
The following businesses and individuals are currently restricted from operating in the produce industry:
- Basic Meats Supermarket Inc., doing business as Bravo Dixie Supermarket, operating out of Miami, Florida, for failing to pay a $17,723 award in favor of a Florida seller. As of the issuance date of the reparation order, Robert E. Gomez was listed as the officer, director and major stockholder of the business.
- Farmway Inc., operating out of Hudson, Florida, for failing to pay a $27,558 award in favor of a Utah seller. As of the issuance date of the reparation order, William Moore was listed as the officer, director and major stockholder of the business.
- Organic Harvest LLC, operating out of Miami, Florida, for failing to pay a $12,089 award in favor of a Florida seller. As of the issuance date of the reparation order, Patricia Davila was listed as a member of the business. Another principal of the business at the time of the order was Thomas B. D’Agostino. He has challenged his responsibly connected status.
- Mibo Fresh Foods LLC, operating out of Fort Worth, Texas, for failing to pay a $220,153 award in favor of a Washington seller. As of the issuance date of the reparation order, Uzor U. Nwoko was listed as a member of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in the USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. The USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. 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 in the Fair Trade Practices Program in the Agricultural Marketing Service, 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, the 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 the USDA continues to support the fruit and vegetable industry.
For further information, contacts, and to read the press release in its entirety, please click the link here.
MOUNT VERNON, WA - Viva Tierra Organic, a grower and marketer of organic apples and pears, recently nabbed a key player for its leadership team, appointing longtime organic expert Chris Ford to the role of Business Development and Marketing Manager. His new position will play an integral role as the company looks toward a strong season of South American fruit.
“I’ve known Chris for many years and I’ve always admired both his organic commitment and his business savvy,” said President and CEO Luis Acuña. “We are thrilled to have him on our team. His deep experience and strategic perspective will be of tremendous value as we continue to build the business to meet the needs of our customers.”
According to a press release, Ford comes to Viva Tierra with more than 25 years’ experience in organic produce, always a champion for organic integrity and social responsibility while expanding accessibility and opportunity for farmers, retailers, and consumers.
“Viva Tierra has truly been organic to its core since 1984, with real dedication to both our growers and our customers,” said Ford. “Regenerative farming practices and social fairness are integral to how we do business. But we’re also working with emerging technologies that support our growers in the quest to improve return to the ranch, eating experience for the consumer, and packaging innovation to reduce plastics. That’s stuff that really matters.”
Prior to joining Viva Tierra, Ford’s career has spanned leadership roles in sales, strategic planning, supply chain management, and grower relations from Earthbound Farm to Whole Foods Markets to, most recently, The Oppenheimer Group.
“I’ll be working with all my talented colleagues at Viva Tierra to expand our portfolio with some highly desirable new items grown by dedicated farmers around the world with great stories and even better produce. Look for some exciting new items later this year,” he added.
The company’s all-organic program includes year-round apples and pears, featuring premium fruit from Argentina and Chile (where Viva Tierra maintain its own farm and cold storage) during the southern hemisphere season as well as Washington and California during the northern hemisphere season. A portion of the southern hemisphere fruit is also Fair Trade certified. The Viva Tierra portfolio also includes seasonal items such as onions, kiwi, and stonefruit.
“We are very excited about the new crop Bartlett pears from our growers in Argentina,” concluded Acuña. “The weather has really been ideal during the growing and harvesting season. Just a bit cooler. Our fruit is exceptionally high-quality this season and we expect to be first to market with Bartlett Pears from Argentina the week of February 17th.”
Congratulations to Chris Ford on this next step in his career.
RIVERSIDE, CA - California-based global avocado marketer, Index Fresh, recently announced another Colombian avocado season, offering high-quality fruit in limited volumes. This is the second season of Index Fresh bringing Colombian avocados to the U.S. market since starting its partnership with Colombian growers last year.
“We are very enthusiastic about this opportunity. After 20 years of volume growth exceeding 10 percent per annum, supply for the U.S. market has been relatively flat for the last four years. Colombia represents an opportunity to diversify the supply of Hass avocados in the United States,” said Giovanni Cavaletto, Vice President of Sourcing, adding that volumes will be low in the near-term but will grow significantly over the next three to five seasons.
Index Fresh has been building relationships with growers in Colombia since 2012-13, according to a press release. The 2017 rule allowing Colombian Hass into the United States has helped grow Index Fresh’s mission to supply high quality avocados as demand continues to grow around the world.
“The groves are very young and the number of groves certified for the U.S. is relatively low. Its proximity to the market is one of the big advantages. They can ship from the Pacific and the Caribbean, allowing them to reach several important ports in less than a week,” said Cavaletto.
The traviesa bloom (or off bloom) comes off June-September and represents 35 percent of the total harvest, while the normal harvest for Colombian Hass takes place November through February and represents two-thirds of the total harvest.
“Due to altitude differences in separate growing regions, Hass will eventually be virtually year-round in Colombia, with peak months of production,” Cavaletto added. “The growers we have identified in Colombia represent forward-thinking, progressive farmers that very much align with the way Index Fresh approaches the avocado market.”
Index Fresh has long had a keen focus on sourcing in Latin America with Mexico and South America each playing important roles. The global marketer has worked in both Michoacán and Jalisco for years, and continues to lead importers from Chile and Peru since they entered the U.S. market.
Keep a tab open for us at AndNowUKnow as we continue to report on the latest news in produce.