STELLARTON, CANADA - Rocking the industry this a.m. is Empire Co Ltd.’s announcement that the Sobeys-parent-company will be acquiring privately-held and Ottawa-based grocer Farm Boy Inc., which is valued at $800 million Canadian dollars, in an effort to boost its presence in Ontario and more.
The newest retailer to join the Empire lineup specializes in farm-to-table wholesale, but it will have to jump through a few hoops before its roots settle. The company will be acquired by Berkshire Partners, following which it will settle as a separate company within Empire’s structure.
“This is a great addition to our portfolio at a time when we are moving from defence to offence. We believe that with the leadership of our new colleagues, current CEOs Jean-Louis Bellemare and Jeff York, we can turbo-charge Farm Boy’s growth. We intend to enable the leadership team of Farm Boy to do what they do best—grow a highly successful retail format at double digit rates,” added Empire President and CEO, Michael Medline, according to a press release. "As we continue to make excellent progress with Project Sunrise and emerge from the heavy-lifting phase, we are excited to advance our growth agenda with this powerful and proven concept."
As part of the deal, 26 Farm Boy locations will strengthen Empire’s stance in markets like Toronto and southwestern Ontario, according to a press release. New sites will pop up and some existing Sobeys locations will convert into the new Empire banner. Medline shares that the company hopes for Farm Boy’s business to double in size.
“Farm Boy is a superb strategic and financial acquisition. It strengthens our reach in the key Ontario and GTA markets, it will be a growth vehicle in urban and suburban markets, and its very strong private label program will bolster our Ocado-driven e-commerce business,” said Medline. “Farm Boy has a best-in-class brand with stellar customer loyalty. Its fresh, ready-to-eat and private label offerings are particularly appealing to urban and suburban consumers – it truly is ‘all about the food’ at Farm Boy. We believe we will be able to build on their historical industry leading same-store sales growth of 5.3% and five-year EBITDA CAGR of 21% to double the size of the business in the next five years.”
Further, Farm Boy products will join Sobeys’ Ocado-based e-commerce business that is set to launch in the Toronto area in 2020.
Farm Boy’s current Founder and Co-CEO Jean Louis Bellemare and Co-CEO Jeff York will continue to lead, and they have also agreed to reinvest in the company return for a 12 percent interest of Farm Boy’s continuing business, according to the news source.
At the beginning of 2019, the deal is expected to close, subject to closing terms.
“As you prepare for the next phase of growth, you don’t just team up with anyone. Empire understands what it will take, shares our vision for the brand, and in President and CEO Michael Medline, and CFO Mike Vels, we have access to executive leadership with deep experience in making acquisitions like this successful. We had many choices, but our trust and confidence in Empire and its dedication to our brand and its growth made this the perfect partnership,” Bellemare shared.
York shared in this sentiment and looks forward to the prospects with this next move.
“What an extraordinary opportunity for Farm Boy. Together with Empire, an iconic Canadian brand with a national grocery presence, Farm Boy will significantly accelerate its growth agenda,” York commented. “We will strengthen the already strong Farm Boy brand, starting with urban and suburban markets in Ontario and eventually rolling out to other areas of Canada. We are particularly excited by the eventual reach of the Ocado e-commerce platform and can’t wait to showcase our high-quality, local products to many more Canadians.”
For more news on how retailers are banding together to strategically strengthen business, stick with AndNowUKnow.
SACRAMENTO, CA - Hello again! It’s us, The Snack Magazine, with another round of our Find the Apple contest! So, get those fingers a-going and send us a photo of yourself pointing out the AndNowUKnow logo on the September issue of The Snack for a chance to win $100 cash.
If you haven’t received a hard copy of this month's issue that features a gorgeous green pear, click here for the digital cover and try your luck. But before you snap that selfie—or have a teammate do it for you —be sure to do the following:
Show your face
I know it’s Monday, but we still want to see your beautiful, smiling faces!
Be sure you are pointing at the AndNowUKnow apple logo
Pictured below is what our logo looks like, but it certainly won’t be that easy to spot!
If you can answer yes to both questions, email your photo to [email protected] to qualify; the race starts now! Remember that we choose two winners, one from the buy-side and one from the supply-side.
Join the coveted winners circle with the likes of:
- Irene Jamarillo of Beachside Produce
- Laura Bartlett, Beachside Produce’s Sales and Marketing Administrator
- Two-Time victor Danny Ortiz of Sysco
- Sobey’s Produce Sourcing Specialist, Organic Dry & Wet Veg Lead, Monina Knox
- Sherry Harper of Beachside Produce
- Francesca Fordice of J. Marchini Farms
- David Carrick of EarthFresh Foods
- Jennifer Velasquez of Golden Sun Marketing
- Kate Reeb of Veg-Fresh Farms
- Scott Hakes of Ciruli Brothers
Interested in receiving a copy of The Snack so that you’ll be prepared for our next challenges? Subscriptions are valued at $129 per year, click here to subscribe.
BAKERSFIELD, CA - When it comes to fresh produce, keeping it short and sweet is always best. Matching the namesake of its label and the industry’s need to get to the point, Western Veg-Pro has introduced its Short N Sweet Market Updates. A twice-weekly newsletter, the recently launched tool looks to ensure retail partners have the inside track to all it offers.
“We want to keep our customers informed and further enhance our business-to-business communication. In our industry, knowledge is power, and this will give retailers and those we work with everything they need to know every Tuesday and Friday,” Dylan Lym tells me.
In these updates, subscribers can expect everything from crop and weather updates, to voices from the company and even recipes to inspire cross-merchandising and retail strategies. And because Western Veg understands the inbox can get crowded, it’s offering an extra incentive to show you Short N Sweet’s merit.
“We are sure once buyers try this they will find it valuable, so we are offering the chance at a $100 giveaway for those who subscribe now through December 31,” Dylan reveals.
This is just the beginning, he assures me, as the company also looks to increase its consumer-facing content through its Short N Sweet website. A taste of what that boost has to offer might even make its way into the market updates now and then for operators to see the company’s market and brand strategy on the shoppers’ side.
Curious? You can subscribe here, and might even find yourself $100 richer. Still need convincing? Western Veg-Pro will be holding an exclusive event at PMA Fresh Summit in Orlando Florida, October 19-20. Keep an eye out for more information on where you can see what this expanding company has up its sleeve.
ZAANDAM, THE NETHERLANDS - Ahold Delhaize introduced a new store concept last week. The Delhaize banner opened the first iteration of a new convenience-focused supermarket based on the brand’s recently updated positioning.
"Delhaize is listening more than ever to its customers in order to respond even better to their current needs,” said Delhaize CEO Xavier Piesvaux, in a press release. “I believe that we have succeeded with this new store, and we will soon launch even more new concepts.”
In that press release, the company noted that the new store concept was developed after a thorough analysis of customer needs; it leaves the classic store design to respond to the ever-evolving expectations of today’s consumers.
The renewed store location opened September 20th, 2018 in Nijvel, Belgium. It’s the first of nine newly reconceptualized stores expected to open in 2018, and the company is launching an additional 36 more in 2019. The remodels are part of an ongoing commitment on the part of the Delhaize brand to invest €200 million ($235.27 million USD) each year to renovate its owned and independent stores.
The new stores will feature the following:
- A “Fresh Atelier” offering ready-to-eat meal solutions freshly prepared on a daily basis, using recipes that contribute to a balanced diet. In order to combat food waste, the company plans to use fruit juices and soups of the day made using unsold products from the fruit and vegetables department
- A “fresh triangle” that the brand calls “the heart" of Delhaize’s new store concept. The fresh triangle includes the bakery department, fruits and vegetables, prepared meals, sushi, fish, meat, a new concept butcher’s shop, cheese and charcuterie, and a vegetarian range of products—all staffed by expert associates
- A wider selection of products—as many as 20,000 in-store items—and a spotlight on organics and environmentally friendly formats such as the bulk department
The new concept store will also offer digital channel shoppers a more streamlined experience. The store offers both “Collect,” which enables customers to pick up products they have ordered via Delhaize.be, and the chance to order online while shopping through five screens positioned within the store.
To read more about the new store format, click here.
AndNowUKnow will continue to report with important retail news.
SAN FRANCISCO, CA - For the first time since 2012, Del Monte Foods is undergoing a massive rebranding initiative that shines a light on its relationship with growers, health, and produce.
The move was orchestrated by its new Chief Marketing Officer, Bibie Wu, who started in March of this year and has hit the ground running with the marketing launch.
Wu worked with Doner LA to create the company’s first branding work since starting her role: “Growers of Good,” a video exemplifying its new strategy. This piece is part of a larger whole that includes TV spots that will air on TNT, TBS, Lifetime, Food Network, Cooking Channel, Bravo, and TLC. In addition to getting some time on the small screen, the campaign will get some digital and social media love, spanning the company’s platforms.
“We believe our brand can help provide delicious nutrition to today’s busy families and also connect with consumers on a personal level by telling the story of how we care for the produce, the farms, and our environment today—and how that will benefit our world tomorrow, so we can nourish families for another 100 years,” Wu shared in a Q&A with Marketing Daily.
The goal for the campaign is to focus on the company’s relationship with its farmers, the communities that it serves, and its natural resources.
“We previously pursued individual campaigns to support each of our businesses: vegetables, which were more meal-centric, and Del Monte Fruit Cup Snacks, which were more for snacking and lunches. We feel it’s time to reconnect the brands under this platform, given the product innovation we are planning, and to drive more scale and efficiency across the portfolio,” she commented
Wu explained the approach builds on Del Monte Foods' most recent vegetable advertising, which has been focused on the product benefit of three simple ingredients: Just green beans, water, and a dash of sea salt.
"The new campaign brings all subcategories—vegetable, fruit, and tomato—under the Del Monte brand together under the ‘Growers of Good’ message,” Wu said. “The new direction plants us firmly in our great farming heritage but also moves the brand forward to connect with consumers of all ages, including millennials, about what matters most to them: families and communities.”
The company’s campaign is integrating more digital and social aspects, but it continues to focus on strong ROIs on its TV investment, as well as coupons supporting item launches, a Pinterest partnership, and PR and shopper marketing.
How will Del Monte Foods' new marketing measures increase interest in the growers our industry knows and loves, and will that transform the face of produce, fresh and beyond, in other ways as part of a ripple effect? AndNowUKnow will keep you updated with the latest.
LONDON, UK - A UK grocer sentenced to 16 years in prison for his role in smuggling cocaine in crates of pomegranates, watermelons, strawberries, cauliflower, and broccoli is back in court this week.
John Fowler, who operated a greengrocer in the Covent Garden neighborhood of London’s West End, has been ordered to pay back more than £416,739 in profits he had gained through the drug trade—more than $540,000 USD—or face additional years in prison, according to the Evening Standard.
Fowler was described by the Standard as a “top lieutenant” and “right-hand man” of Kevin Hanley—a “top, top man” in the cocaine trade who transported “vast quantities of cocaine,” sourced from Venezuela, across Europe and the UK. Fowler was the front for the operation that ferried through at least £5 million ($6,452,000) of drugs.
Fowler appeared in court via video link from prison—and detailed plans to sell assets, including a flat in Bermondsey, to settle his debt. If Fowler fails to pay his debt in a timely fashion, he may face another four years in prison.
For more produce news, keep reading AndNowUKnow.
WASHINGTON, DC - Sarah Grady—U.S. Strategic Supply Chain Manager at McDonald’s Corporation for Produce, Fruit, Potato, & Beverage categories—has been appointed to the United Fresh Produce Association’s Board of Directors by Chairwoman Cindy Jewell.
Grady is stepping into her new position with the Association as Shannon Mikulskis with Chik-fil-A exits the Board. Mikulskis shared that she and the Chik-fil-A team will continue to support United Fresh’s work moving forward.
“We appreciate Shannon’s service on the United Board, and congratulate Sarah on her new appointment to the Board,” Jewell expressed. “McDonald’s has been a long-time supporter of United, and we appreciate the company’s commitment to providing great-tasting, high-quality, fresh produce to consumers at their restaurants across the world.”
Grady will step into the Vice Chairman role of the Retail-Foodservice Board at United Fresh, a Board of which she is a current member.
In her current role with McDonald’s, Grady focuses on strengthening strategic partnerships between the corporation’s produce and fruit suppliers along with other companies throughout the industry in an effort to find resolutions for important issues impacting the produce and fruit supply chains.
Prior to her career and endeavors, Grady received her Bachelor’s degree in economics from Knox College and an MBA from Kellstadt School of Business at DePaul University. In addition to her participation on United Fresh’s Board, Grady is a board member of the Illinois Medical District Guesthouse Foundation.
Congratulations to both Sarah Grady and the United Fresh Produce Association’s Board of Directors on this exciting addition to the organization!
LAGUNA NIGUEL, CA - LIV Organic Produce is making moves to build its sales team and grow its profile in the landscape of organic produce. The grower partnership, launched earlier this year, has added Carrie Briones to its team—in order to oversee sales and grower relations. Carrie brings nearly two decades of produce experience to her new role—building out the burgeoning company’s citrus program.
“Having our relationships with many families and multi-generational growers, over decades of service, has given us a tremendous start in achieving our goal—to continue to help them establish, maintain and leverage a stable spot in the supply chain,” Carrie said. “We are here to be long term partners, but we also understand we need to show results sooner than later. There’s an immediate need for these established family farms to have a presence and some level of security in the changing marketplace.”
Carrie began her career as a coordinator at Riverside Arlington Heights Fruit Exchange—a Sunkist-affiliated exchange—at the age of 20. She has, since then, accrued 17 years’ experience in the produce industry—including 15 years in sales and 12 years working with organic commodities.
LIV Organic Produce’s inaugural citrus season is currently heating up, Carrie tells me, and customers can look forward to a strong season—with year-round supply of a citrus staple and good supply coming in a variety of key citrus categories.
“We currently have year round lemon supply and a good season coming on for California-grown minneolas, navels, and grapefruit—with packaging to fit retailer’s needs.
We at AndNowUKnow congratulate Carrie on her new role and the entire LIV Organic Team on an auspicious start to the season and to the company. Stick with us for more fresh produce news.
PROVIDENCE, RI - Earlier this year, United Natural Foods, Inc. (UNFI) announced it was acquiring SuperValu for $2.9 billion a day before its fourth quarter and fiscal year ended July 28, 2018. This week, UNFI reported its financial results from that time period, noting growth across the board and plans to continue that upward momentum through the 2018 calendar year.
“We are on track to close the SuperValu transaction in the fourth quarter of calendar 2018, and our teams are hard at work planning for the integration to capture the significant synergies and strategic benefits of this transformative combination, positioning our company for growth and value creation,” said Chairman and CEO Steven Spinner.
UNFI also announnced in its earnings conference call that it has appointed Sean Griffin as the new SuperValu CEO.
"We have a robust plan and team in place, and we're delighted that Sean Griffin is energized to lead this effort as the incoming CEO of SuperValu," said Spinner in the conference call. "Sean has more than 30 years of industry experience, and with him at the helm, we have a high degree of confidence that we'll be able to capitalize on the synergy opportunities and realize the full potential of this transformative combination."
According to a press release, the company’s fourth quarter fiscal 2018 results included the following:
- Supermarkets net sales of the fourth quarter of fiscal 2018 were $707 million, a 1.1 percent year-over-year growth compared to fourth quarter sales of fiscal 2017 of $699 million
- Gross margin for the fourth quarter of fiscal 2018 was 14.50%, a decrease of 125 basis points from 15.75% for the same period last year
- Operating expenses increased $19.1 million, to $326.2 million in the fourth quarter of fiscal 2018 compared to $307.1 million in the fourth quarter of fiscal 2017
- Operating income decreased $11.7 million to $49.8 million for the fourth quarter of fiscal 2018 compared to $61.5 million for the fourth quarter of fiscal 2017
- Net income for the fourth quarter of fiscal 2018 decreased 15.6%, or $6.1 million, to $32.8 million from $38.9 million, for the fourth quarter of fiscal 2017
“We continued to deliver solid top-line growth across our customer channels, demonstrating sustained strong demand for UNFI’s product assortment and services. On the bottom-line, our results reflected the impact of customer mix shift and higher than anticipated freight costs, while improvement in our working capital has resulted in record free cash flow for the quarter,” Spinner said about the company’s financial report.
For more information regarding the pending SuperValu acquisition, set to close in the fourth quarter of the 2018 calendar year, and UNFI’s financial report, click here.
For more fresh produce and grocery retail news, keep reading AndNowUKnow.
MURIETTA, CA - It’s no secret: avocados have taken over the world. Or at least, the world’s taste buds. Those at West Pak Avocado recognize this, as the company announced its continued export growth for 2018, and forecasts additional progress with global markets for 2019.
Having recently returned from Asia Fruit Logistica in Hong Kong, the avocado supplier experienced a marked increase in commitments with existing and new customers. The company noted that it has seen exponential growth in its export program over the last two years in traditional markets such as Japan and Canada, along with new emerging markets such as the Middle East, Korea, and other Southeast Asian countries.
"The popularity of avocados is increasing across the globe thanks to education efforts to help people realize the benefits of green fruit,” said Vice President of Global Sourcing and International Business Development Kellen Newhouse. “Also, avocados as a whole have been deemed a wholesome part of a healthy lifestyle, and more people want to be a part of it. As the popularity of avocados continues to expand, West Pak will do its part to supply the tremendous demand.”
According to a press release, West Pak has expanded its presence across Asia, into China, Singapore, Korea, Indonesia, and Malaysia. West Pak’s I Love Avocados™ brand of bagged avocados has also been placed into retailers throughout Singapore and Dubai.
“The growth of our export program has been pretty robust over the past few years. In addition to our dedication to supplying the best possible avocados and building strong long-term client relationships, I attribute our success with exports to the way that we manage things. We run West Pak differently than other companies and our export customers appreciate it. When they have a request, we make a decision and respond to them right away—whether it’s a price, a response to a price, or even marketing or other support. They are not waiting for a communication chain. Because of that speed and our attention to detail, business has been very good for us,” Newhouse added.
To meet the global demand for avocados, West Pak has tapped its mastery of transportation logistics, ripening technology, and marketing expertise. The company has increased production with local growers and processing facilities in the U.S. and Mexico, with additional sourcing from Chile and Peru. The idea is to supply year-round options for avocados to customers around the world.
“Looking ahead, we forecast continued growth into 2019 with increased avocado orders in existing territories,” he concluded. “The world is falling in love with avocados, and we will see growth in traditional export markets as well as new ones for the foreseeable future.”
For the latest in fresh produce buzz, keep reading here at AndNowUKnow.