REEDLEY, CA - Wintertime is inside time in California, and what better way to enjoy cozying up in the warmth than with a refreshing mandarin? I recently caught up with Bianca Kaprielian, Co-Founder of Fruit World Co., to see what varieties are currently being harvested, and boy did she have some sweet updates.
“We are currently in what we call the ‘peak flavor’ part of the season. All of our citrus fruits have the optimal flavor profile right now and taste wonderful,” Bianca said. “We’re a little past the midway point of the season in our citrus programs, and the quality has been great so far.”
Despite a dip in the beginning of January, Bianca says the current market is trending back up.
“Things started picking up in mid-January, and we saw strong sales toward the end of the month,” she noted. “However, we are feeling the effects of some oversupply of lemons and navel oranges.”
When founding Fruit World, Bianca, along with Co-Founder CJ Buxman, believed that sustainability and taste shouldn’t have to conflict, as we previously reported. That belief and determination is still strong today with Fruit World’s robust organic and conventional citrus programs.
To help with retail sales, Bianca informed me of a new packaging concept just released this year.
“Fruit World introduced a new, high-graphic pouch bag for our 2 lb organic mandarins that we are excited about,” Bianca commented. “We also offer a couple of fresh and fun retail pack styles on the conventional end, ranging from a 1 lb bag to a 5 lb bag and a 5 lb gift box.”
In mid-October, the company began harvesting its first conventional mandarins of the season. Shortly after, in November, Fruit World’s organic mandarin program kicked off with Satsumas, then Clementines.
“The organic Page mandarin shipments just wrapped up, and we have transitioned into organic Murcotts and Tangos,” continued Bianca. “On the conventional side, we are harvesting Tango and Klondike varieties concurrently with the organic program through late March, with additional varieties filling out the season until early June for both our organic and conventional programs.”
Along with mandarins, Bianca informed me that Fruit World offers organic grapefruit; organic Cara Cara, Navel, and blood oranges; organic Minneolas; organic seedless, regular, and Meyer lemons; and organic Valencia oranges in the summer.
With a diverse organic and conventional citrus program, as well as varying options in packaging, Fruit World is set to offer convenience and quality to retailers.
For more updates in the produce industry, keep reading ANUK.
GRAND RAPIDS, MI - Recently, the retailer announced its financial results for its 12-week fourth quarter and 52-week fiscal year ended December 28, 2019. SpartanNash, retailer and distributor, saw its fifteenth consecutive quarter of growth, ending with a 5.3 percent increase. The company cites its expansive growth is in part due to its acquisition of Martin’s and supply chain investment.
“We are pleased with the progress that was made in the last quarter,” said Dennis Eidson, Interim President and Chief Executive Officer. “By focusing on execution, we were able to deliver positive retail comparable store sales for the second consecutive quarter, reduce working capital, and increase our free cash flow, while making improvements in our supply chain operations. As a result, we were able to deliver results consistent with the guidance we provided following the third quarter and are optimistic about our future outlook.”
According to its financial results, the company reported operating earnings of $11.6 million compared to a loss of $11.9 million in the prior year quarter. The improvement was primarily attributable to the decrease in asset impairment charges as well as sales growth, partially offset by higher supply chain costs and administrative expenses, including higher healthcare costs and the Transition Costs associated with the CEO transition last August.
Some of SpartanNash’s fourth quarter fiscal 2019 highlights include:
- Net sales growth of 5.3 percent, to $2.00 billion from $1.90 billion in the prior year quarter, representing the fifteenth consecutive quarter of growth
- Retail comparable store sales of 0.5 percent, were positive for the second consecutive quarter
- EPS of $0.15 per share; Adjusted EPS of $0.23, including $0.11 in CEO transition and supplemental incentive program costs (“Transition Costs”)
- Significant working capital improvements over the prior year, including over $45 million in inventory reductions, excluding the impact of the Martin’s Super Markets (“Martin’s”) acquisition
- Ceased production within the Fresh Kitchen during the fourth quarter of fiscal 2019 and entered into an agreement to sell the facility and related equipment with an expected closing date late in the first quarter of fiscal 2020
Consolidated net sales for the fiscal year ended December 28, 2019 increased $471.5 million, or 5.8 percent, to $8.54 billion from $8.06 billion in the prior fiscal year. The increase in net sales was generated through the acquisition of Martin’s, as well as higher sales within the Food Distribution segment prior to the elimination of the intercompany sales for the acquired business.
The financial further stated the Board of Directors has continued a comprehensive process to identify the company’s next Chief Executive Officer and has made progress in the search over the last quarter. More information can be obtained here in the press release.
For more updates in the retail, foodservice, and fresh produce world, keep reading ANUK.
CHILE - I thank my lucky stars, as both a member of the trade and a consumer, that year-round retail table grape programs are in abundance for the health of the bottom line and the belly. As North America has moved offshore for much of its table grape supplies, Karen Brux, Managing Director, Chilean Fresh Fruit Association a.k.a Fruits From Chile, joins me to talk about the category and what we can expect in the weeks ahead.
“North America is by far the largest export market for Chilean grapes. Chile has shipped 84,135 tons of grapes—73 percent of season to date shipments of Chilean grapes—to North America, with a total of 115,427 tons exported worldwide this season,” Karen tells me. “Export estimate for 2019/20 is 642,161 tons, so we still have a long way to go. We’re already promoting, and marketing programs will continue through April.”
Karen adds that the industry is working harder than ever to supply what the market wants.
“That means volumes of varieties like Flame Seedless continue to fall—66 percent decrease between 2017/18 and 2018/19—with volumes of varieties like Sweet Celebration, Allison, Timco, and Jack Salute continuing to rise—just to name a few. There’s been a huge focus on varietal development in Chile to meet the demands of the North American market,” she adds.
The table grape industry has truly elevated its game in terms of flavor and reading the room for what today’s consumer is looking for.
“There are so many new, delicious varieties of grapes, and there are huge opportunities for retailers to communicate more about the unique attributes of specific varieties at the store level,” Karen expresses. “Most consumers who I talk to still identify grapes as green, red, or black, and don’t have any idea of the choices they have when it comes to flavor. Shoppers buy multiple varieties of apples based on different flavor profiles, so there’s no reason why they shouldn’t pick up a few varieties of grapes at their local supermarket.”
To help retailers get the most out of the Chilean table grape season, the association is offering more in-store signage that can help drive sales. There are also great opportunities to educate shoppers on retail social media channels, like Facebook and Instagram.
“We’re working with numerous chains on demos, which are still an incredibly effective way to introduce shoppers to the great taste of Chilean grapes. It’s a convenient, healthy snack, so if people try it and like it, they’ll most likely buy it!” Karen reveals.
Due to the Chilean Fresh Fruit Association promoting in the winter and spring months, the team has developed a number of “season-appropriate” usage ideas for consumers and retailers to tap into, like roasted cauliflower with Chilean grapes and plum salad with brown rice, chicken, pecans, and mixed herbs.
Keep checking back with AndNowUKnow as we look to the Chilean season, new opportunities, and continued growth throughout our industry.
MISSION, TX - When Ed Bertaud, IFCO’s Director of Retail Sales, began this year’s Clean Eating Challenge, sponsored by the Texas International Produce Association (TIPA), he looked at the experience as a pledge to the industry. Little did he know that it would entirely change his perspective on food and his commitment to fresh produce.
“I’m 46 and I feel better than I did in my 30s,” Ed shared with me as we dialed into where this journey began. “I wanted to prove my commitment to the industry and to my profession, and since then it’s become so much more.”
At the beginning of the challenge, Ed’s main motivator was essentially not to fail and to be a good example both for the industry and for Viva Fresh.
“I knew I needed to do this and I knew the accountability associated with everybody knowing about this challenge would keep me on the straight and narrow. I started where I didn’t want to fail, and I didn’t want to be the guy that didn’t make any gains or didn’t get any better,” he stated.
But something that Craig Slate, SunFed’s President and Chief Executive Officer, said to Ed in passing sparked an immediate and lasting change.
“‘I know one day it’s going to be the end for me, but how I choose that end to be I can affect now.’ And that really stood out to me. Am I going to be actually living my life all the way to end?” Ed reflected.
As most journeys go, perspective is essential. With this perspective shift, Ed took to the self-discipline necessary to successfully carry out Dr. Ian Smith’s clean eating plan like a fish to water.
“I didn’t expect to have the way I think about food change so much,” Ed shared, noting that one of the key changes in his food mindset was to look at food as a source of fuel. “When I really thought about food as a way to fuel my body, my life, and my lifestyle, it changed everything. I know it sounds corny, but I dare say it changed my life.”
When he began this challenge, Ed was on the borderline for needing medication for blood sugar and cholesterol, among other things. Since then, he’s dropped 31 pounds—an amazing feat that speaks to his commitment to the fresh industry and to making himself feel better than he has in years.
When I asked Ed if there were any secret tips/produce hacks that helped him stay on track, he didn’t disappoint.
“I’ve never eaten so much cauliflower,” he said with a laugh. “I’ve never had a problem with eating fruits and veggies, but this challenge has really opened my eyes to kale, Swiss chard, and eggplant. I’ve also continued to eat staples like apples, bananas, and berries, alongside mangos, avocados, and grapes. Also, switching out mineral water for soda has been a life saver."
As we get closer to the end of the Clean Eating Challenge and the start date of Viva Fresh, Ed noted why this show in particular is so valuable for the industry as a whole.
“The excitement around the show is palpable. Part of this energy created is due in part to standing relationships, but this show is all about generating new business and finding new connections and opportunities. Highlighting a region that’s very important to the entire country from a supply perspective is very exciting,” Ed explained. “Viva Fresh adds value in business and personal relationships.”
Here’s to folks truly living that produce dream. As we cover what’s up-and-coming for Viva Fresh, keep reading AndNowUKnow.
WASHINGTON, DC - Recently, the U.S. Department of Agriculture (USDA) announced it has reversed its previous decision and has determined that Michael S. Rawlings, Drew Johnson, and Jonathan Dyer were not responsibly connected members of Adams Produce Company LLC (Adams), Birmingham, Alabama, and has released an update to its Press Release No: 114-14.
Direct from the USDA Agricultural Marketing Service:
Adams failed to pay $10,735,186 to 51 sellers for 9,314 lots of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA). Subsequently, the USDA imposed sanctions on individuals deemed to be responsibly connected to the business and required that all principals not be employed by or affiliated with any PACA licensee for a period of at least one year without USDA approval.
The USDA made an initial determination that Steve Alexander, API Holdings LLC, Scott Grinstead, Michael S. Rawlings, Drew Johnson, Jonathan Dyer, and Steve Finberg were responsibly connected to Adams and subject to employment sanction. Michael S. Rawlings, Drew Johnson, Jonathan Dyer, and Steve Finberg disputed this initial determination. USDA has now determined that Michael S. Rawlings, Drew Johnson, and Jonathan Dyer were not responsibly connected to Adams.
Therefore, Michael Rawlings, Drew Johnson, and Jonathan Dyer are under no employment sanctions and may be employed by or affiliated with any PACA licensee. Steve Finberg is continuing to challenge his responsibly connected status with the company.
The PACA Division, which is a part of AMS’ Fair Trade Practices Program, regulates fair trading practices of produce businesses that are operating subject to the 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.
TRAVERSE CITY, MI - Because an image is worth more than a thousand words, North Bay Produce has launched a video segment to highlight its strategic logistics program. The company has a centrally located warehouse to ensure all its fresh fruits and vegetables arrive to consumers as quickly as possible. This warehouse is located in the middle of America—Mascoutah, Illinois, to be exact—which helps North Bay reach 90 percent of the population in North America in 18 hours or less by truck.
“At North Bay Produce, fruits and vegetables are what we sell, yet our lives revolve around global logistics,” the video began. “The story of our success is clearly rooted in our planning. People ask us how do we get newly-ripened produce to people year-round. It’s no big secret. At the heart of North Bay Produce are strong operational logistics and facilities, like the state-of-the-art mid-America airport packing facility.”
The video goes on to explain that the Illinois-based warehouse features one of only 12 USDA-certified cold treatment facilities in all of the United States. Additionally, this is only one of two such facilities that is adjacent to a runway handling international flights. Through the strategic placement of its warehouse, the company is able to evenly distribute its product while maintaining its high quality.
“With the vital use of 32 grower-owned farms, located both north and south of the equator, offering a great range of climates, differing seasons, and select microclimates, this makes it possible for us to supply the fresh harvest to tables every day of the calendar year,” the video explained. “What many may call a logistical nightmare ultimately comes down to the coordination of thousands of people who work in symphony with one another.”
To watch this innovative video in full, scroll up and view the link on Youtube. Stick with us at ANUK as we continue to cover the strategic initiatives coming to light across the industry.
SANTA CLARITA, CA - The Southeastern Produce Council (SEPC) recently initiated the Golden Rule Challenge. Stepping up to the challenge is Sunkist Growers, sharing some of the ways the citrus cooperative has given back in the past year.
“We’re excited to rise up to the Golden Rule Challenge at this year’s SEPC. It’s great to see the industry come together and celebrate all the good produce brings to the world,” commented Christina Ward, Director of Global Brand Marketing.
Some initiatives highlighted were:
- Contributed to over 20,000 meals for Hurricane Dorian Relief
- Donated 5,000+ pounds of lemons to L.A. Loves Alex’s Lemonade and the fight against childhood cancer
- Donated oranges to 120+ families across the Santa Clarita Valley for Thanksgiving through the Samuel Dixon Family Health Center
On another golden note, Sunkist’s Gold Nugget mandarin season is here and SEPC attendees will get a taste of this specialty variety. The company is celebrating peak citrus season and is excited to share its fruit-forward look, merchandising displays, packaging options, and specialty citrus samples at SEPC (booth #329).
“It’s peak citrus season, and we have good supply in all varieties,” Ward continued. “We’re looking forward to giving SEPC attendees a taste of our specialty citrus, including Sunkist Cara Cara oranges, Ojai Pixies, and Gold Nugget mandarins. Stop by booth #329 to share the fruits of our labor.”
According to a press release, this variety always takes consumers by surprise. Sunkist Gold Nugget mandarins are one of the sweetest, juiciest mandarins, plus they are super easy to peel. Named for its beautiful, bright, and bumpy rind, the Gold Nugget mandarin is in season with peak flavor, available now through May.
The company’s specialty citrus varieties, including Cara Cara oranges, Blood oranges, and Minneola tangelos, are now available through May. Cara Cara oranges have a pink interior with a bright and sweet flavor, packed with more than 100 percent of the daily vitamin C requirement, which is why Sunkist calls it The Power Orange. Blood oranges offer a savory and sweet flavor that has a hint of raspberry, delicious for any cooking, baking, or mixing need. Minneola tangelos, a cross between a grapefruit and a tangerine, are super easy to peel and are identified by their knob-like formation. Plus, Sunkist Minneola tangelos are its juiciest variety and have a bold and exotic flavor perfect for snacking or cooking.
Sunkist offers flavor-forward secondary display bins and packaging to help educate the consumer and promote trial and increase purchase intent. Sunkist also offers customizable merchandising options and category management insights to help its customers with their specific category needs.
Here’s to exercising the Golden Rule through premium fresh produce! Keep a tab open for AndNowUKnow as we continue to bring you the industry’s latest.
CHILE - The consumer’s shopping basket is as diverse as ever these days, with more and more companies expanding their programs to offer greater availability across the best of the best in today’s fresh produce programs. One of those premium, in-demand programs is stonefruit—a segment that elevate the flavor and quality across retail.
Karen Brux, Managing Director, Chilean Fresh Fruit Association a.k.a Fruits from Chile, took a beat to talk imports with me as we took the temperature on the current stonefruit season and what lies ahead.
“Shipments of nectarines and peaches peaked in weeks four and five, and are winding down, with promotions running through March. For nectarines, Chile had exported 51,121 tons through week six and, of that volume, 11,954 tons—or 23 percent—were destined for North America,” Karen tells me. “Asia is the largest market for Chilean nectarines, receiving 49 percent of season-to-date shipments. Export estimate for this season is 68,696 tons, a small increase over the 66,889 tons shipped during the 2018/2019 season.”
There is much opportunity to be tapped across Chilean stonefruit. And as Karen notes, there are still some retail chains who don’t sell stonefruit in the winter/spring months, and they’re missing out!
“Over the past few years, we’ve worked with numerous regional and national retail chains on in-store demos, and the numbers speak for themselves. Whenever we run in-store sampling programs and consumers get a tasty, juicy piece of fruit, they buy it,” she says. “I mean, really, who wouldn’t like to eat a sweet, juicy nectarine in the heart of winter? As we say in some of our promotion material, ‘A Taste of Summer. Fresh from Chile.’ Retailers who sell and promote Chilean stonefruit will see that it adds to their bottom line. We have merchandisers throughout the U.S. and Canada who are ready to work with retailers to design custom, tailored stonefruit promotions.”
In addition, the association has numerous merchandising materials, and can support retailers on anything from demos and sales contests to digital coupons and social media programs.
Karen adds that the global export estimate for peaches is 29,132 tons, very similar to last year’s 29,454 tons. Chile had shipped a total of 20,448 tons, with 12,162 tons—or 59 percent—to North America through week six.
“The season for plums starts later and runs later, with peak export volumes expected in week seven and eight. Total volume is estimated at 123,300 tons, a 13 percent increase over last year’s volume of 109,275 tons. So far this season, Chile has exported 28,420 tons of plums, with 7,383—or 26 percent—sent to North America. We will be promoting plums into April,” Karen shares.
The time is now—you've heard Karen! And keep checking back with AndNowUKnow as we bring you more updates on Chilean fresh produce in the weeks to come.
AUSTIN, TX - The relationship between buyer and supplier is essential to our food chain, helping to bridge the gap between farm and fork. Natural grocers like Whole Foods Market are truly spearheading this effort, bolstering fresh produce grown by our industry’s most prominent producers. Whole Foods recently honored some of its supplier partners, naming 32 of the top players for their outstanding achievements in 2019 and ongoing commitments to quality, environmental stewardship, organic integrity, innovation, purpose, and partnership.
“We’re honored to work with and celebrate the remarkable contributions of these suppliers that embody Whole Foods Market’s core values and consistently raise the bar in our industry,” said Don Clark, Senior Vice President of Non-Perishables Merchandising. “Their dedication to excellence, quality, innovation, and partnership is critical to our success and delivering on our mission to nourish people and the planet.”
According to a press release, this was the company's eighth annual Supplier Awards. The honorees were selected by Whole Foods Market global and regional leadership, category experts, and buyers who work closely with these suppliers on a daily basis. There were three outstanding produce suppliers who managed to nab a spot on the list this year: Braga Fresh Family Farms, Suntreat, and Del Rey Avocado Company.
Braga Fresh Family Farms received a Special Recognition awared for providing fresh, high-quality produce and offering excellent service. Farming from the Salinas Valley to Yuma, AZ, for three generations, Braga Fresh quickly became a key supplier for Whole Foods Market in the wet vegetable category, collaborating with the company to refine its offerings and demonstrating consistent engagement and commitment to partnership.
In the outstanding innovation category, Suntreat (Parent Company; AC Foods) was awarded an Outstanding Innovation award after being named for its commitment to selling the highest quality citrus and practicing a win-win partnership. Notably, Suntreat worked with Whole Foods Market to create a remarkable retail program for the widely popular Sumo Citrus variety since it was first launched. Suntreat is also a trusted supplier of a number of other conventional and organic citrus varieties.
Del Rey Avocado Company was awarded a Service and Partnership award, after being recognized for exceptional partnership and attention to service, both of which have made the company a top avocado supplier. In addition to always being readily available and providing transparency, the Del Rey team is committed to high quality and social responsibility by creating economically viable business relationships, utilizing technologies that minimize waste, and practicing environmentally sound agricultural practices in growing its avocados.
For the full list of winners, click here.
Congratulations to all of the incredible suppliers who were named in this year’s Whole Foods Market Supplier Awards.
OXNARD, CA - Any meeting of the minds of produce’s most preeminent thought-leaders is always newsworthy for us at ANUK. These meetings often signify the interwovenness of our industry’s community and what we can accomplish by working together. For Gills Onions, whose team recently convened with Deputy Secretary of Agriculture Stephen Censky on Friday, February 7, 2020, these meetings also help facilitate important conversations about the future of the industry—which, of course, includes one of the 21st century’s buzziest topics: sustainability.
As one of produce’s forerunners of sustainable and regenerative agriculture, Gills Onions is continuously going above and beyond to make sure its team isn’t just talking the talk but walking the sustainability walk however it can. I chatted with Steve Gill, Owner of Gills Onions, to find out how the company’s recent visit with Deputy Censky is doing exactly that and then some.
“We appreciate Deputy Censky’s time,” Steve shared with me. “We had a productive conversation, shared our sustainability story, and gave him a firsthand look at what we do at Gills Onions.”
The company’s sustainability story includes processes that have reworked Gills Onions’ operations into a greener format, like implementing healthy soil practices, partaking in water and land conservation efforts, and incorporating the Advanced Energy Recovery System (AERS) into its facilities.
“Healthy onions start with healthy soil. From the time each seed goes into the ground until it goes on a truck, we continually look at how to make our process more environmentally friendly and healthy,” Steve continued. “Responsible practices are necessary, and we value the conversation we had with the Deputy and listening to the USDA’s vision for supporting efforts to expand regenerative agricultural practices to all farming operations in the United States.”
As we wait for the seeds from Gills Onions’ conversation to sprout, AndNowUKnow will continue to keep you up to date on the latest comings and goings in our industry.