HOUSTON, TX - Rich Dachman, CEO of Brighter Bites, has honed in on industry collaboration in order to increase the consumption of produce. Recently, the nonprofit organization gained another partner in this fight as Chelan Fresh has made a commitment to provide fresh produce to approximately 7,000 Texas families by participating in Brighter Bites’ program. Through this partnership, the two will provide families and teachers in underserved communities with fresh fruits and vegetables and nutrition education.
“We know that less than half of children eat the recommended amount of fruits and vegetables daily. Brighter Bites is changing that by sending home approximately 50 servings of 8-10 varieties of fresh product weekly,” said Dachman. “In order to really make a difference, we need more produce industry partners like Chelan Fresh supporting our mission to improve health by changing the dietary behaviors of our families. By receiving more and more industry support, Brighter Bites will help create even more produce consumers and that will help move the needle on children’s health.”
According to a press release, three out of 10 children in the U.S. are overweight or obese and children now have a 30 percent chance of developing Type 2 diabetes. Through its innovative program, Brighter Bites is working to prevent obesity and improve long-term health outcomes in the communities it serves around the U.S.
“At Chelan Fresh we have observed an encouraging dynamic of kids naturally gravitating toward healthier snacking options when they are made available,” said Chelan Fresh Director of Marketing Mac Riggan. “If they are only offered snacks like chips and candy bars—then obviously, that is what they are going to crave and ask for. But, good news, kids also love apples! The unique little Rockit® apples are incredibly crisp, very sweet, and ridiculously delicious. And, they are the perfect size for kids—making them fun to eat! Rockit is everything everyone loves about apples—miniaturized into a perfect snackable size.”
Chelan Fresh, one of Washington State’s largest suppliers of apples, pears, and cherries, has committed to providing its proprietary Rockit apples nearly every week of Brighter Bites programming to families in Austin and Dallas through May. Chelan Fresh began donating these sweet, small, crispy apples to the Brighter Bites Austin program in December. At that time, Chelan Fresh also made a financial donation and sponsored the printing of bright, co-branded, bilingual materials that provided information about the apples and where to buy them.
“Each family typically goes home with 2-3 pounds of apples, and they are loving them,” said Brighter Bites Sourcing Manager Jennifer Boone. “Children are eating them as soon as their parents pick up their produce bags. The apples are a hit. We’re creating a love for fresh produce in children – what could be better.”
Brighter Bites has data-proven outcomes that show that two years after participating in the program, an average Brighter Bites family consumes 19 additional servings of fresh fruits and vegetables over one week. Chelan Fresh decided that partnering with Brighter Bites was a great way to give back to the community and introduce families to kid-friendly, snacking fruit.
Hats off to these two industry pioneers for their dedication to giving back through fresh produce.
IRVINE, CA - Good morning, AndNowUKnow readers!
Today, I am bringing you some of the category and weather news from around the industry. Check back twice weekly to see the latest around all growing regions.
HEAT WAVE IN FLORIDA HAS OFFICIALLY ARRIVED
Last Friday, we had talked about warming temperatures coming to Florida this week. The heat started over the weekend and will continue through the week, with tomorrow and Thursday being the hottest days of the week. Look for the strawberry growing region of Plant City to hit a high of 88° degrees tomorrow, while Immokalee will touch 89° tomorrow and Thursday. Belle Glade will see a maximum temperature of 89° on Thursday. The nightly lows will also be above average with minimum temperatures reaching as high as 70° in some growing areas.
I would look for an increase of production coming out of all major growing regions of Florida throughout the week. This may relieve some pressure on the tight supplies coming out of Mexico right now.
Temperatures in Florida will cool off a few degrees over the weekend, but next Monday, February 17, the temperatures will warm up again, reaching into the upper 80s.
CULIACAN REMAINS UNSEASONABLE COOL
Nogales shippers are still feeling the effects of the rain and cold temperatures last week in Culiacán and the surrounding areas that have reduced supplies, caused quality issues, and tightened markets. Weather over the weekend was nice but another storm front came through the region yesterday bringing cooler temperatures and a slight chance of rain. At the time of writing this article, yesterday afternoon, no rain had fallen, but there is the possibility that there was rain last night. Please check with shippers.
Tonight, the minimum temperature will be 10° cooler than last night, getting down to 49°. Tomorrow will be the coldest night of the week, dipping to 46° and then 49° on Thursday. It won’t be until Friday that minimum temperatures will be back in the 50°s. Look for supplies to remain tight and prices to remain strong in Nogales on all items coming from the Culiacán region.
Temperatures will finally begin to warm next week with highs climbing into the upper 80°s by Tuesday, the 18th.
YUMA HAD RAIN YESTERDAY AND COOLER TEMPERATURES THIS WEEK
The Yuma Valley received rain from the same storm that made its way through California on Sunday and through Culiacán yesterday. From around noon yesterday until 2:00 pm, Yuma received heavy rains, with totals of up to 1.00”. Please check with shippers to see if harvests or quality will be affected today.
Temperatures will be cool today on the backside of the storm with a high of 64° and low of 40° today. Temperatures will begin to climb starting tomorrow, with maximum temperatures back into the mid-70°s Thursday where they will stay into the weekend.
Thank you as always! We will be back later this week with another report.
WALNUT CREEK, CA - It’s always nice to be recognized for your work, it’s even better when you come out as a winner for it. Del Monte® Foods, on the other hand, scored a hat trick. This year, the company was recognized across three value-added categories as 2020 Product of the Year winners.
“At Del Monte Foods, we’re on a mission to bring people accessible and great-tasting nutrition through the goodness of fruits and vegetables,” said Greg Longstreet, President and CEO, Del Monte Foods. “It is fantastic to see that these new products are already becoming people’s favorites.”
According to the press release, the plant-based food company won recognition for its Veggieful Veggie Bowls™ in the convenience meals category, Fruit Crunch Parfait™ in the snack cups category, and Contadina® Pizzettas in the frozen snack category.
Product of the Year is the world’s largest consumer-voted award for product innovation with this year seeing the largest number of participants to date, as stated in the press release.
“We couldn’t be more proud to see three of our products honored this year,” said Bibie Wu, Chief Marketing Officer, Del Monte Foods. “To be selected as ‘winner’ within a brand new category like frozen snacks is very exciting and demonstrates the strength of our R&D and Innovation teams.”
Winners are determined by the votes of 40,000 consumers in a nationally representative survey conducted by research partner Kantar, a global leader in consumer research. This year marked the 12th year of the award in the U.S. and more than 30 years globally.
Congratulations to Del Monte Foods for the awards! For more developments in the plant-based and fresh produce industry, keep reading AndNowUKnow.
MISSION, TX - From paleo and keto to gluten-free, there’s a diet for all types and needs. However, plant-based is one such preference that spans across almost every diet and, as such, has risen in popularity in recent years. Dr. P.K. Newby, dubbed “The Nutrition Doctor,” will review the science and the importance of a plant-based diet this year as part of the 2020 Viva Fresh Produce Expo.
“With the launch of the Clean Eating Challenge, our participants are modeling what it means to embrace a plant-based diet with more fruits and vegetables. Each week, we’re seeing amazing results among the four participants, but we also want to understand the science behind diet-related diseases and how eating fresh, whole foods can help to prevent illness,” stated Dante Galeazzi, President and CEO of Texas International Produce Association (TIPA). “Dr. Newby will not only help provide these answers but she’ll also discuss how we can use this information to educate consumers.”
According to a press release, Dr. Newby, ScD, MPH, MS, is a scientist, gastronome, and author with 25 years of experience researching diet-related diseases, studying how people make food choices, and teaching why, from farm to fork, eating matters. Dr. Newby will be discussing the key role that fruits and vegetable play during her workshop on Friday, May 1 at 8:30-9:30 am.
Dr. Newby is a thought leader who speaks locally, nationally, and internationally. She holds a doctorate from Harvard, two master’s degrees from Columbia, and served on the faculties at Tufts University (Research Scientist and Assistant Professor) and Boston University (Associate Professor). She’s currently an Adjunct Associate Professor and award-winning educator at Harvard and dedicates most of her time to fighting anti-science in all the ways that she can. Dr. Newby will also be available to sign her book, Food and Nutrition: What Everyone Needs to Know, after her workshop.
Continue following along with us as we bring more Viva Fresh news here at ANUK.
ASHEVILLE, NC - Ingles Markets has been on a record-breaking path since 2018, after two consecutive years of breaking records and taking names in its financial reports. This week, the grocer announced its financial results for the three months ended December 28, 2019, and once again growth was trending positively for Ingles Markets.
"We were pleased with our sales growth during the important holiday period,” said Robert P. Ingle II, Chairman of the Board. “We completed a successful long-term financing that will lower our interest cost for many years to come."
In a press release, the grocer outlined the following results in its quarterly earnings, many of which did not beat last year’s records only because of the steepness of gas prices. Despite this setback, Ingles Markets is still on a path for further growth in 2020.
- Total sales for the December 2019 quarter were $1.08 billion, an increase of 1.6 percent over the December 2018 quarter
- Net income totaled $17.7 million for the quarter ended December 28, 2019 (compared to $22.2 million for the quarter ended December 29, 2018—a decrease attributed to $3.7 million of refinancing costs during the current quarter, which will result in lower interest expense for future periods)
- Net sales totaled $1.08 billion for the quarter ended December 28, 2019, compared with $1.06 billion for the quarter ended December 29, 2018, an increase of $16.5 million
- Comparable store sales, excluding gasoline, increased 2.4 percent
- Gross profit for the December 2019 quarter was $257.5 million, or 23.9 percent of sales
To read Ingles Markets’ report in its entirety, click here. To stay ahead of our industry’s growth trends, stay right here with AndNowUKnow.
ROSEMONT, IL - US Foods is still riding the high of acquiring the Food Group of Companies late last year for $1.8 billion. This week, the foodservice distributor released financial results from its fourth quarter and full fiscal year 2019, in which the company noted growth across the board thanks to its key acquisitions, new product introductions, and ever-implementable strategy.
“Our Great Food. Made Easy. strategy continues to resonate with customers, with 56 new Scoop products launched during the year and continued enhancements to our value-added services platform,” said Chairman and CEO Pietro Satriano. “The integration of the Food Group is progressing as planned with a new leadership organization in place and the successful launch of our best-selling Scoop products in our Northwest markets now complete. We are confident in the future growth prospects for our business and our ability to achieve the 2020 guidance targets we have set for the year."
According to a press release, highlights from US Foods’ fourth quarter fiscal 2019 include the following:
- Total case volume increased 12.3%; independent restaurant case volume increased 11.9%
- Total organic case volume increased 0.4%; independent restaurant organic case volume increased 2.9%
- Net sales increased 14.8% to $6.9 billion; organic net sales increased 3.0% to $6.2 billion
- Gross profit increased 13.3% to $1.2 billion
- Income from continuing operations before income taxes decreased $10 million to $122 million
- Net income decreased $8 million to $92 million
- Adjusted EBITDA increased 12.8% to $335 million; organic Adjusted EBITDA increased 6.7% to $317 million
- Diluted EPS of $0.42; Adjusted Diluted EPS increased 10.0% to $0.66
“In fiscal 2019, we continued to profitably grow our business while expanding our operating leverage for the fourth consecutive year,” continued Satriano. “Full year organic Adjusted EBITDA growth of 6.2% was in line with our guidance for the year and we grew Adjusted Diluted EPS by almost 10%.”
Additional highlights from fiscal year 2019 included the following:
- Total case volume increased 4.6%; independent restaurant case volume increased 7.1%
- Total organic case volume increased 1.1%; independent restaurant organic case volume increased 4.4%
- Net sales increased 7.3% to $25.9 billion; organic Net sales increased 3.8% to $25.1 billion
- Gross profit increased 6.5% to $4.6 billion
- Income from continuing operations before income taxes increased $15 million to $511 million
- Net income decreased $22 million to $385 million
- Adjusted EBITDA increased 8.3% to $1,194 million; organic Adjusted EBITDA increased 6.2% to $1,171 million
- Diluted EPS of $1.75; Adjusted Diluted EPS increased 9.7% to $2.38
With such a successful ending to its 2019, US Foods is already charting the same growth for 2020. To read the distributor’s financial report in its entirety, click here.
For more updates on how our industry’s giants are integrating, digesting, and positioning key acquisitions into their bottom lines, stay right here with AndNowUKnow.
YAKIMA, WA - The Southeast Produce Council (SEPC) Southern Exposure is practically here, and in produce time it has passed. So, if you don’t yet have your floor plan strategy, sit back and enjoy what we have in store for you. Kicking off the decade with a fire hot enough to expect some roasted apples from, I’m assured that Superfresh Growers® will have plenty to share with any who visit booth #303.
“We have a number of exciting projects in the works. We are building our Superfresh Organics™ brand, and you will see our new logo on our booth backdrop. We are doing a slow roll-out of the brand with new packaging coming in the fall,” Catherine Gipe-Stewart, Communications Manager, tells me. “We are also working on sustainable packaging options and currently in researching and trialing mode. The trials are going well and we will have more to share as we continue to gather more data and understanding of what works best to protect fruit quality and be environmentally friendly.”
As retailers get into planning for the year to come, Superfresh is looking back at the success of the Autumn Glory® apple while preparing for the summer program that will be here before we can say “fruit salad.”
“We will be highlighting our summer cherries, blueberries, and kiwi berries,” she shares. “This is our second year partnering with Norris Farms blueberries and kiwi berries, grown out of the Umpqua River Valley of Southern Oregon. Our blueberry fields are the most southern in Oregon, and have the longest growing season in the Pacific Northwest.”
Superfresh’s kiwi berries are smaller than their larger cousins, the kiwifruit. An increasing trend on foodie favorites like Instagram, Cat says they are popular for charcuterie boards and fruit salad bowls.
The Autumn Glory season is going strong, as is its demand.
“This is the only apple with continued triple-digit year-over-year growth, which we contribute to retailers bringing it back year after year,” Cat details, adding that consumers are asking for the variety by name and expecting to see it on produce shelves.
Not only does Superfresh have a key apple ready for lunch boxes and beyond, now it offers the recently-launched Superfresh Kids™ pouch bag program—convenient-sized bags with a family-friendly dollar ring.
“Each bag features engaging graphics and a ‘spot-the-difference’ game on the back. The Superfresh Kids program is designed to create shelf uniformity, while also capturing the lunch-box sales share with kid-sized fruit. We will be showing them off in the booth, so make sure to come by to check them out,” Cat promises.
In speaking on the show itself, her enthusiasm is contagious as we look to the weeks ahead.
“SEPC’s Southern Exposure is one of the best shows of the year, with excellent retailer attendance and opportunities for quality intimate interactions with our customers and the produce industry. The SEPC has created key moments within the show to help develop our network and nurture the relationships we have,” Cat explains of the industry event.
These remaining weeks are sure to fly by as we get ready to kick off the 2020 show season. See you all in the Sunshine State!
NEW YORK, NY - As we reported recently, the food industry forecasting developer, Crisp, recently made its signature software platform available to retailers, distributors, and food industry suppliers. The platform went through extensive beta testing, during which Crisp customers could test the technology. To get a better sense of how this will impact our industry, I spoke with Are Traasdahl, Co-Founder and CEO, and Trevor Hough, Vice President of Products.
“We’ve had some really encouraging feedback. We’re focused on the reduction of waste and the increase of revenue, all while reducing the time it takes to accomplish both,” said Are. “Nounós Creamery said waste dropped by about 80 percent and reduced the out of stock by 10 percent and that almost directly transfers in people’s revenue. We’re seeing that across the board from other customers as well, showing that we’ve had some real impact on these numbers. This speaks to the trends we are seeing in produce and expecting on this side of the fresh sector as well.”
While this innovative platform can be beneficial to all operators in the industry, whether you are buy- or supply-side, I was curious to find out who has shown the most interest in this technology. Are said that everybody is benefiting from this technology, but it’s particularly taking off in the fresh category.
“It truly is an interconnected industry where everybody is dependent on each other. The platform allows for one set of truths across multiple internal departments and companies, as well as the information exchange between companies,” he explained. “It all leads toward an extremely accurate, real-time updated forecast, so everybody can take the actions that they need.”
As we all know, you can’t get the good without getting some of the bad. Only, in Crisp’s case, the bad is simply another challenge that this innovative team is working its way past. According to Trevor, the incredible technology has practically solved this challenge itself.
“It’s unfamiliar and uncharted territory. Our goal from the beginning has always been to make this approachable and easy to use for somebody who doesn’t understand technology. We are giving them the tools to excel with the technology that we know will ultimately help them be successful,” said Trevor. “From a product principles perspective, our goal is to not overwhelm the customer but to make it so that they can get set up and running without an expensive IT project. They can start for free and get up and running in less than 30 to 60 minutes.”
He continued, “We have this internal M.O., which is if you can send an email, you can use Crisp technology. All accounting software and ERPs have the ability to export reports and automate them from an email perspective—we just ingest the email reports and that’s all it takes to get set up with Crisp. Our forecasting platform is so fast that within about 60 seconds we start delivering all of the forecasts for a customer. Then they immediately get value out of the platform because they can see the forecast and start comparing it to what they’re doing today.”
What more will we see from the brilliant minds over at Crisp? We can’t say quite yet, but one thing is for sure: The company’s newly-available software platform will change the way we operate in the fresh produce industry. Follow along with us at AndNowUKnow as we observe this catalyst for change.
ENGLAND - Last December, Ocado, a big-name Kroger partner and a formiddable online supermarket, established a new partnership with Marks & Spencer to bring 6,000 M&S products to its site. Waitrose, a British grocery giant and former Ocado partner, is putting its own strategy in motion as it prepares to launch thousands of new and revamped products in the coming months to stay competitive without Ocado on its arm.
According to The Guardian, Waitrose’s deal with Ocado will finish at the end of August, when the online grocer will begin its partnership with Marks & Spencer. The switchover is a high risk for all the brands involved, stated the news release, since Ocado risks losing loyal Waitrose shoppers while Waitrose, which is part of the John Lewis Partnership, will have to persuade shoppers to use its own website instead. Ocado’s upcoming full-year results is anticipated to contain an update on the M&S joint venture.
Thomas Davies, a Retail Analyst at Berenberg Bank, asserted that Ocado's partnership with M&S will introduce new shoppers to M&S—shoppers who have potentially been waiting to buy M&S grocery items online.
In anticipation of the new partnership, Waitrose is staying competitive with a strategy that will introduce 5,000 new or reformulated products—almost a third of the 17,000 own-label products sold under house brands such as Duchy, Essential Waitrose, and No.1.
For more updates in the grocery and retail industry, keep reading ANUK.
CHELAN, WA - Punxsutawney Phil predicted an early spring for 2020, one that we will get a taste of when we head to Tampa, Florida, later this month for the Southeast Produce Council’s annual Southern Exposure.
“I’m definitely looking forward to that warm weather,” Mac Riggan, Director of Marketing for Chelan Fresh, tells me as we talk about what to look forward to for the event. “It’s cold up here in Washington!”
For his part, Mac is bringing some of the best of the state with him to the show as the Chelan team gears up to showcase its on-point packaging, variety of displays and POS materials, merchandisers, and offerings.
“We will be featuring our organic pouch bag packaging, which we love because it’s very clear and concise. In an instant the consumer knows they are buying an organic apple, they know how much they are buying, where it’s from, and what variety,” Mac says. And the consumer isn’t the only one benefiting from the knowledge gleaned from the bags. “There is so much shrink at the store level due to misrings, and this deters those losses for the retailer and brings that value back to the store.”
Another way Chelan is maximizing value for its retail partners is through its new, innovative cherry Top Seal pack.
“Our new cherry packaging featuring our Top Seal uses less plastic than the conventional clamshell, and is tamper-proof. Again, serving both our customers and theirs,” Mac emphasizes.
And of course, the company’s signature Rockit™ apples will be on display in the recently launched 3 lb shuttle pack, as well as 2 lb pouch bags.
“Something I love about the Rockit apple is it’s so consistent, it’s the most dependable fruit I have ever eaten,” he points out, before speaking to the variety of fruit Chelan offers to suit every palate.
Also in attendance will be Chelan’s KORU® apples, both in bulk and 2 lb pouches, and SugarBee® apples in bulk and 2 lb bags. The former will be just in time for the last surge of its season, meaning that those that want in on it before it's gone will likely be grateful for a visit to Chelan while in Tampa.
Speaking of attendance, this is the show to be at on the whole for buyers looking to innovate their department and those that want to meet them, Mac explained.
“Southern Exposure is a valuable show for Chelan Fresh because there are always a lot of retail decision makers. The Southeast Produce Council makes it easy for retailers to attend, and it shows,” he shares.
Chelan Fresh also aligns well with this year’s theme, Making a Difference, being actively involved in both local and international communities throughout several different programs. If you are looking for a brand with stories to share that will make you and your customers feel their support is going to a good cause, definitely swing by booth #317 and talk to the team about all that the cooperative has been a part of.
Catch you in the Florida sunshine this February 27 - 29!