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.
TROPICAL STORM NARDA MOVING UP MEXICO WEST COAST
When we last talked on Friday, this storm did not yet officially have a name. Over the weekend, the storm strengthened and became Tropical Storm Narda. Our reports show the storm dropped heavy amounts of rain along coastal growing regions of Colima and Michoacán over the weekend.
The storm is hugging the Pacific coast, moving up through the states of Sinaloa and will be into Sonora by tomorrow. Ciudad Obregón and Hermosillo, Sonora, are fall growing areas for vegetables.
COOLDOWN COMING TO THE MID-ATLANTIC
Tomorrow will be an extremely hot day in New Jersey with a high temperature of 92° and a low of 61°. Starting Thursday, the weather will change and begin to cool off. The maximum temperature for Thursday will be 77° and by Saturday will only be 65°. The low temperatures will also begin to cool. By Friday night, expect low temperatures in the 40°s where they will stay until at least next Tuesday.
FLORIDA EXPERIENCING GOOD WEATHER
The Southern Florida winter vegetable growing regions of Belle Glade and Immokalee have great weather at the moment. High temperatures are hovering around 88° while the low temperatures are holding at 73°. There are daily chances of afternoon showers, but nothing more than ½” per day. I would assume crops are progressing nicely for a mid-October start to many commodities from these regions.
HURRICANE CENTRAL
There are a couple of disturbances in the Caribbean creating showers in the area, but the chances of these storms turning into a tropical disturbance are less than 5 percent at this time.
In the Pacific, we are following Tropical Storm Norda, which we mentioned above.
Thank you as always! We will be back later this week with another report.
REDWOOD CITY, CA - Impossible Foods is having a bit of a moment in the world of grocery, as demand for its products continues to soar through the roof. To keep up with this, the company has hired a tech industry sales leader, Dan Greene, to be its Senior Vice President of U.S. Sales.
“Impossible Foods is the hottest startup in the world—and it’s thrilling to join this company as it launches into retail and scales up production and capacity to become ubiquitous. It’s also an incredible opportunity to not only build a great business but have a profound impact on our world and our environment at the same time,” Greene stated in a press release. “Most importantly, I’m excited to meet and listen to our customers so I can understand how to better serve our clients and consumers.”
Effective immediately, Greene will lead Impossible Foods’ sales teams as it continues to ride this growth phase. The company’s press release noted that its flagship product, the award-winning Impossible Burger, is now served in more than 17,000 restaurants and launched earlier this month in grocery stores.
Prior to his role with Impossible Foods, Greene served as Chief Revenue Officer for a conversational artificial intelligence startup, and served as an executive consultant with other early-stage software companies. Prior to that, he spent 11 years overseeing large teams and revenue-generating business units at Google and Twitter. Greene graduated from The United States Naval Academy and served over 10 years as a Navy fighter pilot and Director of Operations for multiple aviation units. He left active duty in 2004 and earned his MBA at the University of California Los Angeles before going to Google.
Congratulations to Dan on this next step in his career! AndNowUKnow will continue to report the latest on executive news in our industry.
LOS ANGELES, CA - Mere months after the industry was sent abuzz with rumors of a possible new Amazon-backed grocery chain, the e-tail behemoth is reminding the industry that it’s not just all talk and no game. The Wall Street Journal reports that Amazon could be kicking off its new grocery chain as early as the end of 2019 thanks to the addition of more than a dozen Los Angeles-based store leases to its brick-and-mortar portfolio.
The news source cites people familiar with the matter, who claim that leases in Woodland Hills, Studio City, Irvine, and Orange County have all been acquired by Amazon for its new grocery chain. The company is also looking to add locations in New York, Chicago, and Philadelphia soon.
The Wall Street Journal’s sources also confirmed that Amazon has been granted permission to change the facades of its new leases and begin electrical work and installation of kitchen equipment—leading many to believe that Amazon’s new chain will offer prepared foods of some kind.
Amazon’s latest venture is another ploy to attract more consumers to its burgeoning platforms. One way Amazon is accomplishing this goal via the new grocery chain is by planting outposts outside urban cores in order to meet the needs of middle-income shoppers, according to The Wall Street Journal.
While Amazon has remained tight-lipped on any additional details regarding the new chain, AndNowUKnow will continue to keep its nose to the grindstone and follow all leads as they pertain to the fresh produce industry.
ORLANDO, FL - Wendy McManus’ flagship group leadership development program is currently in progress for the third time. However, Lean into Leadership will be facing a rebrand next year as McManus is looking to elevate and re-vamp her leadership development program for produce industry professionals. Early next year, the new Thriving Leaders Project will benefit from these changes and also benefit leaders in the industry, now being offered to both men and women in the new co-ed program.
“Having offered Lean into Leadership several times for women only, I’ve heard the calls to make it a co-ed program,” said McManus. “Both men and women in the industry have encouraged me to embrace this new model for supporting leadership development amongst produce professionals.”
According to the press release, men and women from all sectors of the produce industry will dig deep to work on the inner game of personal leadership and the outer game of leading others. The re-evaluated efforts not only came from voices in the industry, but also from McManus having completed a rigorous training program. McManus completed an 18-month coach training certification program with The Coaches Training Institute (CTI), a highly respected organization that has trained coaches across the globe for the past 25 years.
The program included more than 200 hours of training and resulted in McManus earning her Certified Professional Co-Active Coach (CPCC) designation. McManus’ efforts have culminated in over 300 hours of one-on-one coaching. Based on these milestones, she now holds an Associated Certified Coach (ACC) credential from the International Coach Federation, an organization dedicated to upholding high standards for training, ethics, and delivery in the coaching profession.
“As a life-long learner, I’m always looking to the next opportunity to immerse myself in additional training. I’m on a journey toward coaching mastery, and for me that path includes learning and coaching as much as I possibly can,” McManus continued. “The best way to get really good at coaching is to coach and coach and coach some more, so that’s what I’m doing.”
McManus will be at PMA Fresh Summit in Anaheim, California, this year and looks forward to meeting with industry members interested in learning more about one-on-one coaching or the Thriving Leaders Project. Sounds like PMA is shaping up to truly be a can’t-miss event. For more news in the weeks leading up to PMA, keep reading ANUK.
SAN CARLOS, CA - Another September is behind us, and now we enter a new season of growth and prosperity. Fruits from Chile announced this morning that fresh blueberry exports will grow again during the 2019-2020 season, expected to reach 115,000 tons, which is a four percent increase compared to the previous season. This growth stems from new plantings implemented the past few years with the goal of variety renewal, and the ultimate result of an increase in the planted area and production in Chile.
The new area is estimated at more than 4,000 hectares and will come into full capacity during the coming years when new plants reach their full production. However, climatic conditions this seasons will reduce the productive potential due to a lower accumulation of chill hours during the winter, as well as a series of frost events that have been occurring since August. Furthermore, the Chilean Blueberry Committee members have decided not to export a number of older varieties with insufficient shelf life. Due to all these factors, The Committee estimates total production of around 160,000 tons, with 115,000 exported as fresh fruit, 41,000 going into the processed market, and 4,000 headed for the domestic market.
The new planting statistics show a net growth of 2,500 hectares, reaching a total of 18,374 planted blueberry hectares in Chile. In previous years, the total acreage stabilized as new varieties essentially replaced older ones. However, this net growth in the planted surface will increase production, especially through the renovation of varieties with better quality and higher yields. Much of this growth (92 percent of it) is concentrated in the regions of Maule, Ñuble, and Bio Bio, which are the main production areas in Chile.
Another change in the season is the early sprouting of blueberries. The lower winter chill hours and days with higher temperatures in August have “woken up” blueberries earlier and the fruit is one week ahead in development compared to previous years. The Committee plans to distribute an updated forecast early this month, which will consider the effect of September weather conditions on total export volume as well as the expected impact on harvest dynamics during the 2019-2020 season.
With all these unpredictable factors, we may be looking at a Chilean blueberry season like we’ve never seen before. Stay tuned to find out how the crops progress, and keep reading ANUK for the most pressing news in produce.
NEW YORK CITY, NY - On September 24, Senator Kirsten Gillibrand (D-NY) wrote a letter to Agriculture Secretary Sonny Perdue, in which she called on the U.S. Department of Agriculture (USDA) to investigate if fruit and vegetable farmers in New York and across the country are receiving fair prices for their produce.
“Our New York farmers are facing a produce-pricing crisis. Throughout the state, fresh fruit and vegetable growers are hurting because the prices they get for their produce have stayed flat, and in some cases have even gone down, while the middlemen who move the produce from farmers to grocery stores and grocery store shoppers have seen the prices for the same produce increase,” Senator Gillibrand wrote in the letter. “Despite this, the USDA has not reviewed the fruit and vegetable industry in decades. We need to understand what is causing these unfair prices for our farmers, and I am calling on the USDA to complete a top-to-bottom review of the fruit and vegetable industry so that we can help New York’s farmers better price their produce and plan for their future.”
Many of us within the industry understand the seriousness of this request and responded in kind.
“The fresh produce industry operates on extremely tight margins, at every stage from grower to wholesaler to retailer. Our industry is the ultimate supply-and-demand economy, and our real goal must be to increase demand for fresh fruits and vegetables,” stated Tom Stenzel, President and CEO of United Fresh Produce Association. "That’s the key to raising prices paid to farmers, allowing reinvestment for growth. Transparency in any supply chain is a good thing, and we always welcome USDA’s analysis of our markets. It’s important for each sector in our supply chain not to lose sight of our goal to grow fresh produce consumption, while fighting with one another over whose share of a dwindling pie is bigger.”
Richard Owen, the Produce Marketing Association’s (PMA) Vice President of Global Membership and Engagement, also shared with ANUK his thoughts regarding the letter and industry pricing.
“While there are many factors in pricing, fresh produce sales are largely driven by supply and demand,” he remarked. “The perishable nature of fresh fruits and vegetables is a major concern at each step of the supply chain, and throughout the global marketplace, making produce a more costly and demanding product to handle and transport. Our industry is invested in developing and adopting technology that can improve efficiency and transparency, with the goal of increasing our capacity to meet demand and drive consumption and profitability for all of our members along the supply chain. We are open to USDA’s analysis and look forward to helping our industry communicate, and in turn consumers understand, the unique challenges facing the produce supply chain."
Tom Nassif, President and CEO, Western Growers, gave ANUK his perspective on the issue, and how he's seen produce pricing affect Californian growers.
"The trends noted by Senator Gillibrand in her letter to Secretary Perdue are being experienced by fresh produce farmers in the West, as well. In California, for example, we lost nearly 2,000 fruit and vegetable farms between 2012 and 2017, more than four percent. The long-term trend in California, as it is in New York, is toward the declining viability of family farms."
He continued, stating that, "Senator Gillibrand has part of the equation right. Prices paid to fresh produce farmers have trailed prices paid by consumers at the retail level. In fact, the spread can be as high as 300 percent to 400 percent for certain commodities. The consolidation of the retail industry is partly to blame for this phenomenon, which limits the ability of farmers to negotiate better prices for their fruits and vegetables, as well as the preference of retailers to purchase foreign produce at lower prices. However, another element jeopardizing the future of American family farms, and one absent from Senator Gillibrand’s analysis, is the increasing and unnecessary burdens placed on the fresh produce industry by state legislative and regulatory action, which is rendering domestic fruit and vegetable farmers uncompetitive relative to foreign suppliers."
He concluded, "We thank Senator Gillibrand for raising this important issue, and welcome her involvement in creating policy solutions that will ensure the competitiveness and profitability of American fruit and vegetable farmers."
Dante Galeazzi, CEO and President of Texas International Produce Association, offered further insight.
"The more information the industry has about the supply chain, the more informed and the better decisions each of those entities can make about their roles in providing fresh fruits and vegetables to the final consumer," he stated. "A study could prove extremely helpful, and all the stakeholders have a right to understand the flow and pricing of their goods through the marketplace. However, we would encourage the Senator to opt for more dialogue with these various entities before moving to accusations of 'unfair pricing.' We do not want regulations influenced strictly by politics, nor do we want to see limited markets or less fresh produce on store shelves. More can be accomplished together as an industry, rather than divided."
As we await the USDA’s response, AndNowUKnow will continue to report the latest.
SALINAS, CA - Taylor Fresh Foods is growing thanks to its recent purchase of substantially all assets of Club Chef in Covington, Kentucky. As part of the acquisition, Taylor Farms is adding a distribution partnership with the Castellini Company to its operations.
“Club Chef has a long history of leadership in the foodservice fresh-cut vegetable industry,” said Bruce Taylor, Chairman and CEO, Taylor Farms. “We are honored to complete this transaction and establish a distribution partnership with the Castellini Company.”
Brian Kocher, CEO of the Castellini Group of Companies, added: “Castellini Group of Companies looks forward to the expanded relationship with Taylor Farms and overwhelming our current and prospective customers with the value that we can provide.”
According to a press release, as part of the transaction, Taylor Farms is welcoming Club Chef employees to its team and is looking forward to earning the trust of Club Chef’s customers.
“This transaction provides a wonderful opportunity for our employees and customers who are joining Taylor Fresh Foods and allows us to be singularly focused on growing in areas of the produce supply chain where Castellini has, for over 120 years, provided great value to its customers,” continued Kocher.
The Covington facility will continue full operations under the leadership of the Taylor Farms Tennessee operating company.
Congratulations to all companies involved on this great opportunity for growth! For more breaking produce news, keep reading AndNowUKnow.
SUNBURY, PA - The retailer Weis Markets has been quiet on the newswire these past couple months, but today announced that it has entered into an asset purchase agreement with T.C.D. Realty to purchase two supermarket locations. The locations are the Thomas’ Foodtown in Dallas, Pennsylvania, and the Thomas’ Food Basics in Shavertown, Pennsylvania.
“We have great respect for the operators and associates of Thomas’ Foodtown and Food Basics in Dallas and Shavertown and look forward to continuing to serve the Dallas area,” said Jonathan Weis, Chairman, President, and CEO. “We look forward to interviewing their associates for possible employment with our company.”
The transaction is expected to be completed in the fourth quarter of 2019, according to the press release. After the purchase is complete, Weis Markets will convert and reopen the Dallas location, but will not reopen the Shavertown location. Once the store reopens, Weis Markets will operate seven stores in Luzerne County.
Congratulations to Weis Markets on this exciting purchase agreement! Stick with us at ANUK for more news in the retail sector.
CENTRAL CITY, PA -The California-based grocer has been expanding across the nation a lot more fervently lately. Recently, Trader Joe’s has reached into North Carolina, with talks of a new store opening up in Kansas as well. Now, Trader Joe’s is opening a new location in Center City, Philadelphia. With this recent development, it will be Trader Joe’s second venue in the City of Brotherly Love.
Local news site The Philadelphia Inquirer first reported Trader Joe's had an interest in the 1324 Arch Street location back in January. Seeing as how busy the first location in downtown is, the welcomed second location, a mere mile away, will be a sigh of relief and a welcome addition for the residents of Philly.
According to The Inquirer, the new 16,000-square-foot location will have an October opening date and join a continuing supermarket boom in Philadelphia. With competitors like Sprouts, MOM’s Organic Market, Giant’s Heirloom Market, and Aldi in the surrounding area, how will Trader Joe’s fare? Keep reading ANUK as we uncover more retail news.
BELLEVUE, WA - In an industry that never stops moving, the number of faces that represent it never stops growing. Today, Arable Capital Partners announced the addition of Thomas Flies as an Associate and Scarlett Caldwell as an Office Manager in the Bellevue, Washington, office.
“Scarlett and Thomas bring a broad range of skills and strengths. They will complement the existing Arable investment team as well as enhance our ability to effectively invest across the food and agriculture sector, while managing the business of Arable Capital Partners,” said Greg Richards, Managing Director in the Bellevue office.
Before joining Arable, Thomas was an Investment Banking Associate for Robert W. Baird in the Global Industrials Group in Chicago, Illinois. While at Baird, Thomas provided analytical support on mergers and acquisitions, equity offerings, and other financial advisory services. Prior to Baird, Thomas was an Investment Banking Associate with Cascadia Capital in Seattle, Washington, where he focused on executing capital raises and mergers and acquisitions for middle-market companies. Thomas began his investment banking career with Wedbush Securities where he executed mergers and acquisitions for Pacific Northwest community banks. In his new position, Thomas will be responsible for providing support on transactional work and due diligence on acquisitions, financial analysis, and portfolio reporting.
“The professionalism and experiences they both bring to Arable Capital Partners will provide immediate value to our current investment opportunities and portfolios, as well as strengthen our capabilities for the future,” said Derek Yurosek, Managing Director in the Bakersfield office.
Scarlett will be responsible for operations, human resources, project management, and administration. Prior to Arable, Scarlett ran the co-sell research team at Microsoft and had multiple operations management positions throughout the Pacific Northwest. She specializes in efficiency and effectiveness protocol, talent acquisition, re-organizations, and project management. Scarlett holds a B.A. in Business Administration from the University of San Francisco and comes from a customer service and operations background, working to assist companies with process management for over 10 years by organizing and streamlining business processes.
Congratulations to Thomas Flies and Scarlett Caldwell on their exciting new roles, and congratulations to Arable on snatching them up! Keep reading AndNowUKnow for all the news in the industry.