SALEM, OR - NORPAC Foods, a grower-owned produce cooperative founded in 1924, has announced it is forming an asset purchase agreement with Oregon Potato Company (OPC) under which OPC will acquire nearly all of NORPAC’s assets. To facilitate a free and clear sale, NORPAC has initiated proceedings under chapter 11 of the United States Bankruptcy Code.
"NORPAC is pleased to have found a partner who shares our vision and will ensure the best possible future for our growers, employees, customers, and partners," said Shawn Campbell, CEO of NORPAC. "Our business operations will continue as normal through the bankruptcy process. Our 2,700 employees will continue to receive their wages and benefits, our vendors and suppliers will be paid in the ordinary course of business going forward, and our customers can continue to rely on us for unparalleled produce and products thanks to our family of farmers."
According to a press release, the transaction is expected to be swift, closing within 60 to 90 days, during which time current NORPAC management will continue to oversee operations supported by debtor-in-possession (DIP) financing provided by CoBank. The transaction is subject to customary closing conditions, federal regulatory, and Bankruptcy Court approvals.
"We intend to work as quickly as possible through the forthcoming process,” commented Frank Tiegs, President of Oregon Potato Company. “We are excited about bringing the growers, employees, partners, and various assets of NORPAC together with our family of companies. The combined businesses will enhance the offerings and service to customers across all business channels."
For more produce industry acquisition news, keep reading AndNowUKnow.
EDINBURG, TX - Who doesn’t love the perfect onion to compliment their dish? Well, definitely some. My sister, for example, will sort out every onion no matter how small we mince. Onions aren’t palatable for everyone. J&D Produce saw the tragedy in this and set out to create a mild-tasting sweet onion for everyone to enjoy. We sat down with Jeff Brechler to find out more about J&D’s HoneySweet® onion program.
“Folks are migrating from other states to Texas and are being introduced to the HoneySweet for the first time. They comment on the flavor, and how they have never tasted an onion so mild. Even if they’re not an onion lover, when a recipe calls for an onion, this is their go-to,” said Jeff.
The low pungency of HoneySweet onions is due in large part to the extensive testing carried out by J&D.
“We focus our testing efforts on the pungency of an onion, we’re not too concerned about sugar content,” Jeff boasted. “The industry classifies a sweet onion as testing between a 1 and 5 with 5 being hot and our HoneySweets are consistently testing between 1.5 to 2.5.”
But how do I get my sister to give this onion a try?
“The trick is getting new consumers to taste it for the first time. Once they do, they’re hooked. Our goal is to continue introducing the HoneySweet onion to new customers and expanding our reach," Jeff said. "If we promote the flavor as well as overall health and wellness of eating fruits and veg, we’ll be better for it.”
The company is invested in its home state, as Texas’ soil content is teeming with nutrients that promote growth of fruits and vegetables. J&D, along with Viva Fresh Board member and company President James Bassetti, is a fierce advocate for health, wellness, and taste in the produce industry, providing the company solid ground on which to stand.
New to J&D’s program is the availability of organic onions year-round. The company has organic certification in all producing areas, now with the addition of Peru. New to the program this year will be Peruvian organic onions. With this in mind, we asked Jeff what the current state of the HoneySweet onion program is.
“The Peruvian crop is progressing nicely and we anticipate seeing arrivals in the first ten days of October,” replied Jeff. “The Vidalia crop went a little bit longer than what initially anticipated, so we’re just now getting through and seeing a full transition from Vidalia to New Mexico.”
With organics on the rise, J&D is continuously working towards consistency in the market. According to Jeff, the company measures its growth in acres, and that has doubled in the past few years since it began the organic HoneySweet onion program. There’s no guarantee how retailers will allocate space for organic products, but J&D is working with its retail partners to extend the three- to four-month offering period to ten to twelve months.
“Not everyone is on an organic program in retail. It becomes a regional and time thing, there’s different thought processes on which item to devote space to and for how long to carry that item,” Jeff added.
Despite the market’s rise and fall, HoneySweet onions maintain their consistency by using the same seed variety for each crop. The size, shape, and taste are all essential components of the product’s unique makeup.
We, at AndNowUKnow, marvel at the innovation of this product. I know one thing’s for sure: my sister will reconsider onions. Stick with us for more produce news coming your way.
IRVINE, CA - This past Sunday, the G-7 summit was held in France, where President Donald Trump and Prime Minister Shinzo Abe reached a possible trade deal. American farmers have expressed an overall approval on the matter, especially Western Growers' President and CEO Tom Nassif.
“Western Growers is extremely pleased to learn of the deal in principle between the U.S. and Japan, the third-largest market for American agricultural products. We are encouraged that the agreement will lead to substantial reductions in tariff and non-tariff barriers to access to the Japanese market, which will level the playing field for U.S. farmers, in particular, producers of fruits, vegetables, and tree nuts,” Nassif stated in Western Growers’ press release.
According to Kyodo News, Trump and Abe met on Sunday on the sidelines of the Group of Seven summit in France and agreed in principle on the bilateral trade deal and to step up remaining work to sign it in September.
“We applaud the efforts of President Trump, Prime Minister Abe, and trade representatives from both countries to secure a mutually beneficial deal that will result in significant export opportunities for Western Growers members and the broader agricultural industry,” continued Nassif.
Kyodo News further stated that Japan also decided during the Abe-Trump meeting to purchase around 2.5 million tons of excess corn in the United States as the U.S.-China trade dispute has taken a toll on such farmers, according to government sources.
Nassif also commented that “the anticipated reductions in tariffs and SPS barriers will result in true market gains and much needed economic relief for an industry that has already been caught in the crosshairs of trade wars on other fronts.”
Abe said negotiators will continue to fine-tune the language, but the two leaders said they hoped to sign the agreement in New York in late September when the U.N. General Assembly meets. There was no mention of whether Congress would have a role in approving the agreement. The possible deal could open Japanese markets to $7 billion in U.S. goods, according to Roll Call.
“Tariff equity for U.S. fresh produce is one of our most important international trade priorities, with Japanese tariffs on American agricultural products reaching as high as 35 percent for some commodities,” commented Nariff. “Of equal importance is the need for sanitary and phytosanitary (SPS) reforms, as Japan’s current SPS regulatory regime prohibits many high-quality U.S. fruits, vegetables, and tree nuts from entering the Japanese market.”
How will this new deal further affect both growers and consumers? ANUK will continue to report.
IRVINE, CA - Good morning, AndNowUKnow readers!
After some time away, I am back bringing you some of the category and weather news from around the industry. Check back twice weekly to see where the rain is falling, the sun is shining, and everything in between.
Here are a few of the regions to be aware of...
EXCESSIVE HEAT COMING TO THE NORTHWEST
Parts of Oregon and Washington can expect excessive heat today and tomorrow. In Oregon, the entire length of the Willamette Valley from Eugene in the South up to Portland in the North will see high temperatures today and tomorrow in the upper 90°s, with some isolated 100° temperatures. These temperatures are about 10° above Monday’s highs. This valley is a big player in the berry markets this time of year and these warm temperatures might cause a bump in production.
The Wenatchee and Yakima Valleys of Washington will also see high temperatures in the mid-to-upper 90°s this week. Items coming from these regions may see a small spike in production as well. Temperatures in Washington will cool off on Sunday of this week.
EXCESSIVE HEAT CONTINUES IN THE SAN JOAQUIN VALLEY
The latest heat wave to hit the SJ Valley, which started Sunday, will continue through tomorrow. Maximum temperatures up and down the valley are ranging from 103° to 106° depending on the day and location. Possible bump in production on items coming from this area? Please check with shippers.
LATE WINTER HEAT WAVE IN CHILE
Major Chilean fruit growing regions are currently experiencing a late winter heat wave. The high temperatures are ranging from the upper 70°s to the mid 80°s and lows in the mid 50°s. Today will be the peak of the heat wave that started late last week and will continue through tomorrow. These temperatures are 15°-20° above normal for this time of year. By the weekend, highs will be back down in the 60°s and minimums in the low 40°s. Could these temperature swings have any effect on upcoming tree fruit blossoms?
HURRICANE CENTER UPDATE
The main concern now is Tropical Storm Dorian, which is just off the northern coast of South America, making its way west toward Puerto Rico and the Dominican Republic where it should hit sometime Thursday morning. There is about a 90 percent chance of the storm forming a cyclone. Rains along the way will range from 3” to 9”. If the storm makes it way through the island of Hispaniola intact, then there may be a chance it makes landfall somewhere in Florida this weekend. We will have an update for you on Friday.
Thank you as always! We'll be back on Friday with another report.
WASHINGTON, DC - As part of its efforts to enforce the Perishable Agricultural Commodities Act (PACA) and ensure fair trading practices within the U.S. produce industry, the U.S. Department of Agriculture (USDA) has imposed sanctions on The Fruit Club, Sioux Falls, South Dakota, for failing to meet its contractual obligations to the sellers of produce it purchased. These sanctions include barring the business and the principal operators of the business from engaging in PACA-licensed business or other activities without approval from USDA. By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
Direct from the USDA Agricultural Marketing Service:
The Fruit Club failed to pay $367,040 to four sellers for produce that it purchased, received, and accepted in interstate commerce from June 2016 to October 2017. This is in violation of the PACA. As a result of these actions, The Fruit Club cannot operate in the produce industry until August 16, 2021, and then only after they apply for and are issued a new PACA license by USDA.
The company’s Principal, Matthew Kleinsasser, may not be employed by or affiliated with any PACA licensee until August 16, 2020, and then only with the posting of a USDA approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. Those individuals, including sole proprietors, partners, members, managers, officers, directors or major stockholders may not be employed by or affiliated with any PACA licensee without USDA approval.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,350 PACA claims involving more than $63 million. PACA staff also assisted more than 8,000 callers with issues valued at approximately $156 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
To read the USDA’s press release in its entirety, click here.
MISSISSAUGA, ONTARIO - Horacio (Haio) Barbeito has been named President and CEO of Walmart Canada, effective in October, pending work authorization. The news accompanied the announcement that Lee Tappenden, the current President and CEO, will be departing the company at the end of the year. Tappenden has been a part of the Walmart team for 23 years.
“I’m very excited by the opportunity to lead the Walmart Canada team,” said Barbeito, who first began his Walmart career nearly 25 years ago. “We will continue to work to drive the growth and innovation our Canadian customers expect.”
When he first joined Walmart’s team, Barbeito started as a Trainee Buyer. From there he developed his career through various sectors and roles, including replenishment in Argentina and the U.S., supply chain and store operations in Puerto Rico, and many other leadership positions like CEO of Walmart Argentina (2012) and CEO of Walmart Argentina and Chile (2015).
According to a press release, as the incoming CEO of Walmart Canada, he is an example of the career opportunities that can be found at Walmart.
“We’re pleased that Haio’s next role will be leading Walmart Canada, where the team will benefit from his engaging approach and breadth of experience,” said Dirk Van den Berghe, EVP and Regional CEO, Walmart Canada and Asia. “During his time in Argentina and Chile, Haio has led the business to consistently deliver strong performance while at the same time focusing on people through digital talent acquisition, talent development, and diversity and inclusion—resulting in increased engagement across the business.”
Through October, Tappenden will work with Barbieto. Tappenden will then take on a global role on the International Support Team, where he will focus on global sourcing and supplier leverage until his departure on January 31, 2020.
“Lee is a servant leader with a strong connection to associates, customers, and our communities,” continued Van den Berghe. “He drove improvements in both associate engagement scores and customer satisfaction metrics. Lee’s passion for elevating charitable causes, such as Children’s Miracle Network and Walmart’s Fight Hunger.Spark Change campaigns, and his energy will be missed.”
Congratulations to Horacio Barbeito on his new position and to Lee Tappenden on this next step in his career!
IDAHO FALLS, ID - After announcing his retirement from PMA in July, the industry veteran has landed with a new company. Category Partners announced recently that Steve Lutz will join its executive team as Senior Vice President of Insights and Innovation.
“I’m honored to join the Category Partners team,” stated Lutz. “As I spoke with Tom [Barnes] and his team about collaboration opportunities, the more we talked the more it seemed that joining Category Partners simply made the most sense for me, for Category Partners, and especially for our clients. I’ve always enjoyed looking deeply inside the data as well as emerging consumer trends to identify new business opportunities. It’s been central in my professional journey and is what I love to do.”
Prior to joining Category Partners, Lutz served with PMA as its Vice President of Member Engagement. Prior to that role, Lutz was Chief Strategist and Vice President of Marketing for CMI Orchards. He has also served as President and CEO of the Washington Apple Commission.
“Steve is a pro and we’re absolutely delighted to have him join our team,” said Barnes, CEO. “Steve’s ability to dissect complex business challenges, dig into the numbers, zero in on the heart of the matter, and offer realistic and tangible solutions to clients is second to none. He is a proven leader in the fresh foods, retail grocery space.”
In the news release, Barnes added that he sees Lutz aligning perfectly with Category Partners’ mission to utilize a broad spectrum of data sources and proprietary reporting tools along with primary consumer research to help its clients efficiently and effectively drive top line and bottom line growth in the retail channel.
Congratulations to Steve on this new position!
RIDGE SPRING, SC - Titan Farms and Harris Teeter formed a peachy partnership for the fifth year in a row, culminating their donations to Second Harvest Food Banks in Winston-Salem and Metrolina/Charlotte. This year’s donation to the Peaches with a Purpose program substantially contributed to a total of 219,000 lbs of peaches donated in the past five years.
“Five years ago, we never would have imagined the impact Peaches with a Purpose could have on these communities,” said Lori Anne Carr, Vice President of Titan Farms. “Giving back and supporting local communities has always been important to us, and we are grateful we have been able to partner with Harris Teeter to help the food impoverished for so many years in a row.”
According to a press release, the partnership began five years ago when East Coast peach grower, Titan Farms, sought out to feed the underserved through its Peaches with a Purpose program while also raising awareness around the food insecurity epidemic in the U.S. From the beginning, North Carolina-based retailer Harris Teeter jumped at the opportunity to fight hunger alongside another produce industry leader.
“On the behalf of children and families who struggle daily with hunger in our communities, we want to thank Harris Teeter and their partner Titan Farms for their commitment to help end hunger,” said Kay Carter, Executive Director for Second Harvest Food Bank of Metrolina. “It is imperative that those living in poverty can afford and have access to healthy food options and produce. We are very grateful for this support that has made such a difference in so many lives.”
We, at AndNowUKnow, applaud the initiative taken by both Titan Farms and Harris Teeter. Stick with us for the latest in the produce biz.
DAVIS, CA - Engage3 has done it again! For the third year in a row, the company has snagged a spot on the prestigious Inc. 5000 List of Fastest-Growing Private Companies in the U.S.—an accomplishment to celebrate as only a fraction of the tens of thousands of companies that have been considered make it to the list more than once. And only 1 in 8 company ever make it on the list for three consecutive years, with Engage3 being one!
“It’s an honor to be awarded this prestigious recognition for a third year in a row. In addition to growing the company on a customer, revenue, and employee basis, we have been investing heavily in proprietary and disruptive pricing capabilities that enable retailers to measure and take control of their Price Image,” said Ken Ouimet, Engage3’s CEO and Founder. “The innovations will accelerate as we build out our Price Image Management Suite™ offerings.”
The Inc. 5000 list represents a unique look at some of the most successful companies within the American economy’s most dynamic segment—its independent small businesses—which over the years has included the likes of Microsoft, Dell, Domino’s Pizza, Pandora, Timberland, LinkedIn, Yelp, Zillow, and more.
“We are very proud of our team for accelerating the company’s growth in the midst of closing our Series C financing, implementing and expanding programs with the world’s largest retailers, and adding disruptive capabilities to our product portfolio,” added Edris Bemanian, Engage3’s Chief Operating Officer. “We’re fortunate that our customers and partners are the industry’s thought leaders. Through these partnerships, we expect to continue our aggressive growth rate in the years to come.”
According to a press release, not only have the companies on the 2019 Inc. 5000 been very competitive within their markets, but the list as a whole shows staggering growth compared with prior lists, including an astounding three-year average growth of 454 percent, and a median rate of 157 percent. The Inc. 5000’s aggregate revenue was $237.7 billion in 2018, accounting for 1,216,308 jobs over the past three years.
“The companies on this year’s Inc. 5000 have followed so many different paths to success. There’s no single course you can follow or investment you can take that will guarantee this kind of spectacular growth. But what they have in common is persistence and seizing opportunities,” said Inc. Editor-in-Chief James Ledbetter.
Engage3 helps retailers and manufacturers manage their Price Image through accurate competitive data, data science, and Artificial Intelligence-powered software solutions.
Congratulations to Engage3 on this year’s honor!
WASHINGTON, DC - The United Fresh Start Foundation announced the date for its 2020 FreshStart Conference, taking place January 14-16 in Tucson, Arizona. The event includes an annual conference, golf tournament, and gala dinner, all of which is aimed to increase fresh produce access for kids and their families. Industry leaders will come together for silent and live auctions that will benefit the foundation, as well as Workshops to educate and motivate attendees.
“I’m looking forward to this year’s FreshStart Conference as a way to get the industry thinking about what we can all do, both personally and professionally, to grow opportunities for kids to enjoy the healthiest foods on the planet, fresh fruits and vegetables,” said Greg Corrigan, CEO of United Vegetable Growers Cooperative, and United Fresh Chairman of the Board. “This year’s event will be at a beautiful, sunny location, and we invite the industry and our volunteer leaders to join us in supporting a great cause while we kick off the new year together!”
According to a press release, the golf tournament and auction are known to raise over $100,000 a year, all of which is contributed to United Fresh’s mission. Funds such as these aid in the movement to bring nutritious salad bars to schools that provide a variety of fruit and vegetable choices for students. The association takes additional steps to provide children with fresh produce after school, on weekends, and during the summer by partnering with like-minded stakeholders.
“The FreshStart Conference is an opportunity to empower our industry and focus attention on new and creative ways of cultivating the next generation of produce consumers,” said Phil Muir, President and CEO of Muir Copper Canyon Farms, and Chairman of the United Fresh Start Foundation Board of Trustees. “This year, I’m excited for attendees to experience a packed lineup of engaging events, networking with colleagues, and the opportunity to come together for a worthwhile cause.”
United Fresh’s 2020 Lifetime Achievement Award recipient will be named at the event’s Gala Dinner in addition to traditional volunteer leader meetings. To register for the FreshStart Conference, visit www.unitedfresh.org. Admission requires a $295 fee from members of the association and a $495 fee from non-members. More details on this exciting event can be found at www.unitedfreshstart.org. Follow along with AndNowUKnow for more updates on this conference.