CINCINNATI, OH - Annually in August, folks mark their calendar for Crosset’s Produce and Floral Conference at the Great America Ball Park in the great city of Cincinnati. And we knew without a doubt that this year the Crosset Company would once again make the event a home run with a show featuring approximately 40 vendors that drew in a crowd eager to see the growth and future of the produce sector in our industry, with an emphasis on its organic advantge.
Overlooking the sparkling Ohio River and the Cincinnati skyline, show-goers were wowed by vendors such as Lady Moon, Cal Organic, Braga, Greenfield Farms, and more.
With organics on the rise more than ever before, the show highlighted both up-and-comers and those first-string companies who have continued to make it their mission to offer consumers what they’re looking for. As Lauren Scott stated in her keynote, this is the first time in history that organic produce is being sought after by five generations at the same time, and the ‘organic consumer’ is ‘anyone with lips.’
The highlight of the Crosset event was the panel, which took this idea and expounded upon it, shedding some light on the future of organics and what retailers and suppliers should expect in the next ten years. The people who sat on this panel were Todd Linsky of Todd Linsky Consulting, Sherrie Terry of Sherrie Terry Consulting, and Anaïs Beddard of Lady Moon Organic Farms.
“The conversation was lively and centered around ethics, policy, promotion, and the sustainability and viability of how we go about conducting business,” Todd explains. “Many wanted to know what was next for the organic industry and the retail sector as a whole. I spoke to the effects of ‘dumbing down’ the food supply and what it means to the farmer, retailer, and the consumer.”
He added that the most heartening moment of the panel was seeing people have an “aha!” moment, as attendees understood the message he was there to share with them. The audience was genuinely interested in examining their businesses from a new perspective, Todd tells me.
With over 300 people in attendance, panel viewers were excited to hear more about the potential of organic growth, and Sherrie was more than happy to offer her insight.
“Organic produce sits at the convergence of emerging and enduring consumer wants, needs, attitudes, and beliefs,” Sherrie explains to me when I ask her about the future of organics and how it will affect retailers. “The size of the category today and its potential for continued exponential growth makes ‘getting organics right’ essential. There is tremendous opportunity for those who consistently deliver quality, freshness, and a broad assortment that is always in stock, while maintaining the integrity of organic certification across the supply chain.”
She continued, stating that, “It’s tough because of the complexity of the production system, the scope and dispersion of the grower base, and the challenge of optimizing supply chain costs and efficiencies while delivering the right assortment, quality, freshness, and value. But the size of the prize warrants finding innovative solutions. It also reinforced the need for greater consumer education on what organic means, and the opportunity to create loyal, engaged shoppers by delivering that education through well-trained, organic advocates in-store and the creative use of both in-store and digital media.”
Anaïs had a particularly special side of the coin to share, as she explained to me that the greatest highlight of the experience for her was sharing information regarding organics from a grower’s perspective.
“Organics has a bright future as long as we keep the standards strong and maintain its reputation as the gold standard of agriculture,” she tells me. “I loved connecting with the people who bring Lady Moon product into their stores; it’s really nice hearing how our produce is received. Organic has become a brand so anytime it can be connected to the complex production system is a good thing.”
Once again, Crosset has knocked it out of the park. Bringing people across the industry that represent organic produce allows for new ideas to spark and opportunities to flourish.
WESTBOROUGH, MA - A new month and season are almost upon us, and BJ’s Wholesale Club is wrapping up this quarter with some good news. This week, the retailer announced its first financial results as a, once again, public company for the 13 and 26 weeks that ended August 4, 2018, reporting strong second quarter results that beat the company’s expectations.
“We are pleased with our second quarter results, which exceeded our expectations,” said Christopher J. Baldwin, Chairman and Chief Executive Officer. “We’re still in the very early stages of our transformation. Our progress is accelerating as we work to attract and retain members, get them shopping, and make it more convenient to shop at BJ’s. As a result of our performance, we have increased our expectations for the full-year.”
According to a press release, results for the second quarter (13 weeks) ended August 4, included the following:
- Net sales increased 4.3% to $3.2 billion compared to $3.1 billion in the second quarter of fiscal 2017
- Comparable sales increased 5.0% compared to the second quarter of fiscal 2017. Merchandise comparable sales for the quarter increased 2.0%, representing the fourth consecutive quarter of positive merchandise comparable sales
- Membership fee income ("MFI") increased 9.7% to $70.4 million compared to $64.2 million in the second quarter of fiscal 2017
- Gross profit increased to $588.5 million from $553.3 million in the second quarter of fiscal 2017
- Operating income was $38.7 million compared to $74.8 million in the second quarter of fiscal 2017
- Loss from continuing operations was $5.5 million compared to income from continuing operations of $19.8 million in the second quarter of fiscal 2017
- Adjusted EBITDA increased 5.4% t $143.0 million compared to $135.7 million in the comparable period last year
- Adjusted net income was $43.3 million, or $0.31per diluted share, compared to $30.5 million, or $0.22 per diluted share, in the second quarter of fiscal 2017
For the 26 weeks ended August 4, highlights included the following:
- Net sales increased to $6.2 billion from $6.0 billion in the first half of fiscal 2017
- Comparable sales increased 4.2% compared to the first half of fiscal 2017
- MFI increased 8.4% to $138.4 million compared to $127.7 million in the first half of fiscal 2017
- Gross profit increased to $1.14 billion from $1.06 billion the first half of fiscal 2017
- Operating income increased to $103.2 million from $47.0 million in the first half of fiscal 2017
- Net income was $8.5 million, or $0.09 per diluted share, compared to a net loss of $39.2 million, or $0.44 per diluted share, in the first half of fiscal 2017
- Adjusted net income was $71.4 million, or $0.51 per diluted share, compared to $38.1 million, or $0.27 per diluted share, in the first half of fiscal 2017
As a result of its strong financial earnings, BJ's shares surged 6 percent in premarket trade, according to a report by MarketWatch.
To read the financial report in its entirety, click here.
Will BJ’s Wholesale Club’s strong financial results bode well in the competitive retail marketplace and help keep it afloat against rivals Costco and Walmart? AndNowUKnow will continue to report on grocery retail developments.
KINGSVILLE, ONTARIO - Shining a light on organics this coming September as the company ramps up its product portfolio, is greenhouse powerhouse Red Sun Farms. With SEPC's Southern Innovations Organics and Foodservice Expo in Nashville, Tennessee, just around the corner, Red Sun is looking forward to sharing its ever-expanding organic series which includes a variety of tomatoes, cucumbers, and peppers.
Marketing Specialist Costin Beliciu joins me as we wrap up August to share the latest and greatest for Red Sun Farms.
"At this year’s show we will be showcasing our organic mini cukes, mini peppers, and our always popular grape tomatoes," Costin tells me as he reflects on the program. "The demand for organics has been increasing year after year, not only in sheer volume but in different varieties as well. Our customers are feeling the demand from their consumers, so we need to provide them with the same quality and innovation that they already rely on from our conventional product lines."
In terms of packaging, POS, merchandising support, and materials, what innovation best represents the Red Sun Farms commitment to organics?
"For our organic line, it is our goal to provide packaging that reflects, and complements, the ideologies associated with organic food. Our organic grapes, for example, are packaged in a completely biodegradable fiber bowl, to which we have received tremendous feedback about," Costin tells me.
For this year's show, Red Sun Farm's key message will concentrate on the company as a major player in the organic industry, with the team growing some of the best tasting, highest quality products in North America. This is a result of Red Sun Farms controlling every aspect of the production process from seed to plate.
UNITED STATES - News broke yesterday that President Trump and President Enrique Peña Nieto agreed to dissolve the North American Free Trade Agreement in favor of The United States-Mexico Trade Agreement.
However, many have reported that Trump will need Congress’ approval for any new trade agreement, leading POTUS to clarify he was doing away with the name NAFTA—but that The United States-Mexico Trade Agreement will still exclude Canada.
"They used to call it NAFTA," President Trump said in a press conference at the Oval Office. "We're going to call it the United States-Mexico Trade Agreement. We'll get rid of the name NAFTA. It has a bad connotation because the United States was treated very very badly for NAFTA."
As one of the biggest issues our industry faces, many representatives from produce and agriculture have come forward with their thoughts on this latest development.
“I am pleased that the United States and Mexico have found a way to sort out their differences in what has been a lengthy re-negotiation fraught with highs, lows, tariffs, and tweets,” Matt Mandel, Sunfed’s VP of Operations, told ANUK. “Mexico is the United States’ third largest trading partner and the success or failure of our economies is intertwined. While we are still a ways off from a new agreement being in place, this is tremendous progress, and I look forward to a successful tri-lateral agreement (including Canada) sometime in the very near future.”
Not everyone in the industry is so optimisitic about the transition. CBS News reported it is unclear yet whether Canada will be a part of the revised agreement, reporting that President Trump said “we’ll see” if Canada can be a part of the deal with Mexico or if the U.S. and Canada will have to strike up their own deal.
“We’re starting negotiations with Canada pretty much immediately,” Trump said.
The Canadian Produce Marketing Association (CPMA) responded to the news with its own statement, asserting that it was “encouraged” by the news.
“CPMA was reassured by the Mexican President’s continued reference to including Canada in future discussions and moving towards a new trilateral trade agreement given the integration of trade between NAFTA countries. Canadian negotiators have been steadfast in their support for the industry and are well briefed on issues affecting fresh produce, including the seasonality provision, the elimination of Chapter 19, and the sunset clause. It is our understanding that the seasonality provision has been removed from the U.S.-Mexico agreement and will not be part of the discussions moving forward. CPMA has long advocated for the removal of the seasonality provision and is pleased that it will not be a feature of a future trilateral agreement,” CPMA stated.
The end of NAFTA did not speak positively to everyone in our industry, however, with Mike Stuart, President of the Florida Fruit & Vegetable Association, issuing a statement that outlined the plight low-costing fruit and vegetable imports from Mexico have caused for family farms in the U.S.
“This is not the outcome we have worked for,” Stuart said about President Trump’s decision to end NAFTA. “However, the President has promised to help safeguard farmers, and we will continue working diligently and persistently with the administration on solutions to stop Mexico’s unfair trading practices and to help our fruit and vegetable industry survive,” Stuart stated. “FFVA appreciates the support and efforts of our Congressional delegation on this issue. Our members of Congress understand the unfair trade environment fostered by NAFTA. Working with them and the Administration, FFVA is committed to fighting destructive trade practices through all means possible to help our farmers compete on fair terms and stay in business.”
AndNowUKnow will continue to report as development pertaining to NAFTA and a trilateral agreement occur.
SALISBURY, NC - This week, Ahold Delhaize-owned banner Food Lion will introduce a new look, layout, and feel for residents of the greater Norfolk, Virginia, market. Following a $168 million capital investment in 105 area stores—which included plans to hire 4,000 new associates and perform remodels on stores throughout the region—the company announced plans to unveil “a new, easier shopping experience” for Virginian consumers.
“Food Lion has nourished the greater Norfolk community for nearly 40 years, and we're excited to bring these improvements to our 105 local stores,” said Meg Ham, President of Food Lion, in a press release. “We've created a new grocery shopping experience through the significant investments in our stores, customers, associates, and communities.”
Each of the banner’s newly-remodeled stores will open to the public at 8 a.m. on Aug. 29, following a 7:45 a.m. ribbon-cutting ceremony. New stores will reportedly feature a number of improvements designed to help consumers navigate each store more efficiently.
“From our expanded variety and product assortment, newly reorganized stores, new signage to a more efficient check-out experience, every change we’ve made will make it easier for our customers to find fresh, quality products at affordable prices every day,” added Ham. “And true to our heritage, we always offer everyday low prices along with weekly sales and promotions, making it easier for you to nourish your family on a budget. We invite our customers to come and experience the fresh, new changes at your neighborhood Food Lion.”
Changes to the stores will include the following:
- Fully remodeled stores featuring new signage and groupings of like products, to make it easier to locate items faster
- A more efficient checkout process
- Improved quality and freshness of products throughout the store
- Low prices on thousands of items across all departments
- Expanded variety and assortment across all departments relevant to our customers in each store, such as more local produce in our “Local Goodness” section, an expanded variety of craft beer, limited reserve wines, and more local, natural, organic, and gluten-free items
- An abundant selection of fresh produce and meat backed by Food Lion's double-your-money-back guarantee and a larger selection of Nature's Place beef, salads, fruit, and other items
Additionally, six stores include expanded deli departments that offer items such as handmade artisan pizza and premium coffee. And twelve of the 105 stores also feature walk-in garden coolers designed to keep produce fresher longer.
“We not only invested in our stores, we also invested in promoting great associates and hiring promising new talent,” concluded Ham. “It's also why, as part of our grand re-opening celebrations, we're partnering with the Food Bank of Southeastern Virginia and the Eastern Shore and the Virginia Peninsula Food Bank to help end hunger in the towns and cities we serve. Giving back to our communities is something we're just as passionate about as serving our customers every day in our stores.”
The completion of Food Lion’s Norfolk-area remodels will bring its grand total to 649 of a total 1,030 stores remodeled in the last four years.
For more fresh produce news, keep reading AndNowUKnow.
SANTIAGO, CHILE - What pairs best with avocados? If you said your tee time’s finest argyle, then you guessed right! In an exciting advancement for the Chilean Avocado Importers Association (CAIA), professional golfer Joaquin Niemann has agreed to become the organization’s Avocados from Chile ambassador. In his new role, Niemann will hone in on celebrating his Chilean roots while addressing consumers through the company’s U.S. marketing program. This is the first partnership of this magnitude for the association, and as the organization moves forward with Niemann, it will focus on social media and television spots in the U.S. market throughout the 2019 Chilean avocado season.
“This partnership is an exciting milestone for the Chilean Avocado Importers Association, and we’re thrilled to bring on Joaquin as part of our mission to shine the spotlight on Chile, the land of avocados,” Chairman Jorge Covarrubias shared in a press release. “Joaquin has an impressive list of accomplishments at only 19 years of age, and we know he is only just beginning.”
Niemann has much to celebrate alongside his roots in Chile—including being the number one ranked golfer in the World Amateur Golf Ranking for 44 weeks, from May 2017 to April 2018, when he took his love of golf to a whole new level and become a professional. Since going pro, Niemann has four achieved top-eight finishes and has earned enough FedEx Cup points to become a Special Temporary Member on the PGA Tour—a remarkable feat because he will be the youngest to do so since Sergio Garcia in 1999. All of these achievements, though, circle back to Niemann’s love of Chile and spreading love for and attention toward avocados stemming from his home country.
“I’m very proud to be Chilean, and I love my country,” said Niemann. “Working with Avocados from Chile is a natural fit for me, as I incorporate avocados into my diet to stay healthy and perform my best on the course. I’m looking forward to helping share that message with American consumers.”
Talk about a driver!
COALINGA, CA - Is a dish truly complete without a clove of garlic…or five? Without this trusty crop, much of our lives would be flavorless and our dishes bleak; I shudder just thinking about it. Luckily, the U.S. garlic season is underway with Spice World’s largest California crop ever hitting retail shelves now!
I spoke with Chris Whitson, Senior VP of Sales, and Arden Caneza Laughter, VP of Sales, to learn more about its record harvest taking place in the San Joaquin Valley.
“We are in the middle of our 2018 new crop California garlic season. Currently we are harvesting, grading, and packing the garlic, and we’ve already begun shipping new crop to our customers,” Arden shared with me. “Quality is excellent. Our early variety garlic that came out late June was really pretty, and now we’re moving into our late variety and looking forward to another round of good results.”
While California has been enduring a few heat waves and fires of late, Arden and Chris assured me that except for a few bouts of rain, Mother Nature didn’t tamper with their beloved crop this season.
“This is our largest harvest ever as we reach our goals of providing our customers with our California-grown garlic year around. Not all customers have the same needs; therefore, we will also offer other global options so we can meet each customer’s specific requests,” Chris explained. “Every year since the drought, we have increased planting, harvesting numbers, and acreage. The market on California garlic is strong, and as a result, we continue to grow more garlic each year to meet the rising demand. We expect another great season as more consumers seek Spice World California garlic.”
Spice World is led by multiple generations of Caneza family members, who continue to operate the business out of its headquarters in Coalinga, California, and Orlando, Florida. As operations and market share continue to grow, the company is expanding its family by bringing on a new partner, Palladium Equity Partners.
“Our new partnership with Palladium will position Spice World to continue our 70-year legacy as a family-operated business doing what we love: growing garlic and serving our customers; we are very excited about the future,” Arden told me.
Chris added, “As ‘America’s Favorite’ garlic brand, we are always striving to increase resources that will lead to improved efficiencies and creative innovations, along with health and wellness initiatives for consumers and in the workplace.”
With conventional, organic, and fresh ready-to-use and squeeze product options, Spice World is one to watch as garlic continues to capture taste buds and hearts around the world.
UNITED STATES AND MEXICO - After months of deliberation that has left much of the agriculture community searching for answers, President Trump has reached a conclusion with Mexico and is calling for an end to the North American Free Trade Agreement. Trump is introducing its replacement, The United States-Mexico Trade Agreement, which currently excludes Canada.
Trump has called NAFTA a job-killing “disaster,” according to AP News.
Details on the new agreement between the two lower North American nations will be revealed later today, but President Trump has plans to meet with the U.S.’s northern neighbor to begin negotiations.
"We are starting negotiations with Canada pretty much immediately," Trump said, according to Fox News.
Both, the U.S. and Canada, are looking forward to moving the trade agreements forward.
“Canada is encouraged by the continued optimism shown by our negotiating partners,” Chrystia Freeland, Minister for Canada’s Foreign Affairs, said Monday, according to Fox. “Progress between Mexico and the United States is a necessary requirement for any renewed NAFTA agreement.”
To put some more pressure on the relationship between Canada and the U.S. in the hopes of moving a deal forward, Trump threatened to tax Canadian auto imports, the news source relayed.
How will the agreement between the U.S. and Mexico take shape, and will that result in a similar agreement between the U.S. and Canada? With all of these moving pieces, AndNowUKnow will keep you updated as the story evolves.
NORMAN PARK, GA - The Southeast Produce Council’s 2018 Southern Innovations Organics and Foodservice Expo is almost upon us, and long-time partners like Southern Valley Produce are gearing up to bring their latest and greatest innovations to the Gaylord Opryland Resort & Convention Center in Nashville, Tennessee.
I recently had an opportunity to talk to Shelby Rakestraw to learn more about Southern Valley’s plans for the second annual event—including plans to highlight a new website designed to give the company’s customers an even easier way to get in touch with the growing company.
“We’re very excited to reconnect with our current customers and partners, as well as meet new potential customers. A member of our team is on the SEPC board, and we love working together to influence the produce community,” Shelby told me. “We’re all very much looking forward to featuring our line of foodservice products and pack sizes, as well as discussing the new possibilities of moving toward organics.”
I asked Shelby about the company’s latest in a long line of innovations designed to service Southern Valley’s various retail and foodservice partners—the new southernvalley.us website.
“We decided to give our website a facelift and redesign due to our recent internal growth and expansion so that our customers and end consumers had a faster, sleeker, more modernized way to see who we are and get in touch with us,” said Shelby. “We’ve added the ability to sign up for our newsletter via the webpage, we’ve updated our leadership page, and we’ve built in functions on the back end of our site that will allow us room for more development and growth in the future.”
As a company deeply dedicated to innovation and giving back, Shelby noted, Southern Valley is ideally suited to pair up with the SEPC. From investments in the company’s workforce to initiatives in the communities it operates, Southern Valley is committed to the same community values that SEPC espouses.
“Just by looking at the values and mission of SEPC, it is clear that Southern Valley is equally devoted to educating and investing in our local community,” Shelby said. “We provide our community, from elementary school kids to adults, with the chance to tour and visit our farm and packing facility. In addition, we strongly believe in a well-trained workforce and in continuing to utilize innovative methods and approaches to provide premier service at every opportunity.”
Southern Valley is currently in its Tennessee harvest season, with plans to wrap up in late-October. And, Shelby told me, the company will begin its Georgia harvest in mid-September.
“Our list of products includes: pole-grown cucumbers, green beans, mini sweets, eggplant, bell pepper, squash and zucchini, cabbage, corn, hard squash, and cilantro,” said Shelby. “And we’re also transitioning into growing traditionally West Coast-grown produce—including broccoli, cauliflower, and green leaf lettuce—on the East Coast.”
For more fresh produce news, keep reading AndNowUKnow.
KEENE, NH - C&S Wholesale Grocers is making moves to keep up with the evolving grocery landscape by appointing Joe Cavaliere as Chief Commercial Officer, effective September 4, 2018.
“C&S has an impressive legacy of innovation and delivers distribution excellence for the lowest cost in the food business,” said Cavaliere. “In the years ahead, we have a unique opportunity to build on this success to leverage industry-leading capabilities to become the undisputed partner of choice for growth.”
With over 30 years of industry experience in roles like President and Global Chief Customer Officer, Cavaliere has proven successes in customer development with brands like Kraft Foods, Unilever, and Newell Brands. Throughout his career, he has served on the boards of Habitat for Humanity, Breakthrough Atlanta, The National Association of Chain Drug Foundation, RILA (Retail Industry Leaders Association), and Enactus. He has a B.A. in economics and business administration from Ursinus College.
“Joe is a result driven, strategic leader focused on people leadership, customer development, and identifying creative solutions for solving customer issues,” said Mike Duffy, Chief Executive Officer. “He has a passion for building high-performing teams and developing new capabilities and will be instrumental in defining solutions to help our customers win.”
According to a press release, C&S’s addition of a Chief Commercial Officer exemplifies an enhanced focus on customer collaboration to keep up with the evolving grocery retail landscape. Tapping an executive with Cavaliere’s breadth of industry experience will help position C&S to stay up on consumer trends and provide top quality service to its current and new customers.
Congratulations to Joe Cavaliere on the new role! For more industry hires, executive shakeups, and retail happenings, stay tuned to AndNowUKnow.