BERLIN, GERMANY - Word on the street is that German retailer Metro AG has plans to sell its hypermarket chain Real, which has been struggling recently. The chain is worth $1.2 billion, and the sale of Real could attract interest from heavy-hitting buyers, such as Amazon, according to some analysts. After Whole Foods was taken under Amazon’s wing for $13.7 billion last year, the e-commerce giant could be interested in taking on additional food retailers.
According to a report from LiveMint, potential buyers have been leery to enter the German grocery market since Walmart took a loss of $1 billion after it sold its stores to Metro. The retailer subsequently pulled out of the country in 2006.
“Germany’s grocery e-commerce is very underdeveloped and Germany is a very important country for Amazon,” said Bernstein analyst Bruno Monteyne, adding that a likely price tag of around $1.2 billion would be of little consequence to Amazon.
Metro AG CEO Olaf Koch said earlier talks with interested parties had not come at the right time as Metro began restructuring its business. The retailer said that it wanted to focus on its wholesale business, which serves independent traders, hotels, and restaurants and is more shielded from e-commerce, while doing more delivery to customers. LiveMint reported that the wholesale food business has higher margins than grocery retail, and is growing faster as people spend more on eating out rather than cooking at home.
Koch also pointed out that Metro had seen “express interest from a number of parties,” but that the sale process could take up to eight months.
An Amazon spokesman has declined to comment.
Will the sale of Metro’s Real signal to Amazon that more opportunities in grocery await? AndNowUKnow will keep you updated with the latest growth in our industry.
CALIFORNIA - For Golden State growers, sweet potato season is in full swing this September. The state’s spud farmers kicked off a slightly early season late this summer, and all signs suggest a strong crop—in terms of both quality and quantity—continuing throughout the fall.
Darren Barfield, Chief Operations Officer for Quail H Farms, noted the high-quality and ample quantity of this year’s harvest.
“This year, we started rocking and rolling,” Darren told me. “We started harvest a little early this year, and we’re in full swing right now. Quality appears to be a little bit better than last year, and yields are comparable to last year. From a farming standpoint it looks like a really good year for California sweet potatoes.”
Retail Sales Specialist Jeremy Fookes, of A.V. Thomas Produce, also noted that California season is currently in full swing and predicted ample supply of California-grown product in the coming months.
“All our machines are fired up, and everything's going into storage. As far as the outlook on crop yield, it looks like it’s about average so far. It's a little too early to tell over all. The percentage of acreage we’ve harvested is still on the low end,” said Jeremy. “Quality has been very good. We’ve had really good conditions—nice dry weather during the last few weeks that allows the potatoes to cure out in the field and allows us to harvest them without any trouble. They'll be plenty of supply, as far as California product, to carry over throughout the holidays, with good quality and supply when people are looking for sweet potatoes the most.”
Likewise, Nick Martinez, Director of Operations for Country Sweet Produce, noted that conditions in California are currently optimal, and all signs point to those conditions continuing through the remainder of the season.
“With harvest in full swing and ideal weather conditions in California, all early indications point to a great sweet potato season,” said Nick. “Sweet potatoes are a year-round staple, which equates to no days off as we get all acres prepped for demand.”
For more updates on key categories and growing regions in our industry, keep reading AndNowUKnow.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a press release, the following businesses and individuals are currently restricted from operating in the produce industry:
- Sanchez Bros. Produce LLC, operating out of Chicago, Illinois, for failing to pay a $6,515 award in favor of a Texas seller. As of the issuance date of the reparation order Cesar Sanchez was listed as a member of the business.
- Intermex Products LLC, operating out of Bronx, New York, for failing to pay a $38,849 award in favor of a Texas seller. As of the issuance date of the reparation order, Juan Garcia was listed as a member of the business.
- Castros Distribution LLC, operating out of Dallas, Texas, for failing to pay a $30,386 award in favor of a Texas seller. As of the issuance date of the reparation order, Dimas Castro was listed as a member of the business.
- Benny F. Hall & Sons LLC, operating out of Oak Hall, Virginia, for failing to pay a $5,280 award in favor of an Idaho seller. As of the issuance date of the reparation order, Benny F. Hall, Sr., was listed as a member of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. 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 3,400 PACA claims involving more than $58 million. PACA staff also assisted more than 8,500 callers with issues valued at approximately $151 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
ROSEMONT, IL - US Foods recently announced that Cheryl A. Bachelder has been appointed to the Board of Directors, effective October 1, 2018.
Bachelder served as CEO of Popeyes Louisiana Kitchen from 2007 to 2017. Prior to that, she served as President and Chief Concept Officer of KFC Corporation. According to a press release, Bachelder’s earlier career included brand leadership roles at Domino’s Pizza, RJR Nabisco, Gillette, and Procter & Gamble. Currently, Bachelder is a Director of Pier 1 Imports, Inc. She is also the author of the book, Dare to Serve: How to Drive Superior Results by Serving Others.
“Cheryl is among the most respected executives in the food industry,” said Pietro Satriano, Chairman and Chief Executive Officer. “Her unique experience building brands and leading sustained growth in the restaurant industry will provide valuable guidance to US Foods as we execute on our ‘Great Food. Made Easy.’ strategy.”
Bachelder holds a Bachelor of Science in Business Administration and a Master of Business Administration in Finance and Marketing from the Kelley School of Business at Indiana University.
“We’re excited to welcome Cheryl to the board,” said Robert Dutkowsky, Lead Independent Director and Chairman of the Nominating and Corporate Governance Committee. “She’s an accomplished leader with an exceptional track record of creating strong brand value that drives performance. We’ll benefit from her insight and expertise.”
Congratulations to Cheryl on this new appointment!
PHILADELPHIA, PA - AgroFresh Solutions is bringing its award-winning, time-tested SmartFresh™ technology to its U.S. customers after announcing the launch of SmartFresh™ InBox earlier this month.
“Our aim is to support our customers in providing high-quality fresh produce to more consumers around the world and to help them decrease food waste,” said CEO Jordi Ferre. “SmartFresh InBox is our latest innovation to help growers overcome challenges and supply fresh, healthy produce to their customers.”
SmartFresh technology has provided benefits for growers, packers, and retailers for almost two decades, and the latest installment, InBox—grounded in the most advanced plant physiology science that works with fruit and veg’s natural ripening process—continues that legacy, while also expanding the availability of SmartFresh technology by offering growers a smaller, more accessible option via convenient, easily applied sachets. The sachets, once applied, then offer effective protection from internal and external threats, and in the long run, extend freshness, increase shelf-life, reduce shrinkage, and improve profits for growers.
“At AgroFresh, we are committed to growers’ success and work closely with them to develop and provide tailored solutions to fit their specific needs,” said Global Core Portfolio Project Lead Veronika Mangin. “SmartFresh InBox is the latest example of our long-term collaboration with growers. It’s a small, easy to administer yet powerful treatment that prolongs freshness.”
According to a press release, SmartFresh InBox is registered in all U.S. states except California for apple, pear, plum, kiwifruit, persimmon, broccoli, and tomato crops, while in California, SmartFresh InBox is just registered for kiwifruit.
For more of the latest technology and solutions rolling out across our industry, stay up-to-date with AndNowUKnow.
THE NETHERLANDS - We all love the beautiful and comforting feeling when we are able to cut off a fresh sprig of this herb or a head of that lettuce. Enza Zaden is hoping to create a wave of change in the industry by introducing its Resistance Makes the Difference initiative, which seeks to make customers aware of which products will enhance their production and end-users’ consumption. The goal, here, is to push fresh to a new level and promote it as the gift that keeps on giving.
“We put Enza Zaden on the map as breeders of herbs,” Business Manager Erica Renaud shares with me. “Around 10 years ago, we tightened the breeding objectives of several herb varieties to gear them more to the needs of our customers and end users. Customers want plants with good resistance and year-round homogeneous, reliable production. Therefore, we now actively focus on resistance and quality traits, breeding by selecting and crossing specific genetic characteristics that make the plants resistant or less susceptible to common diseases with extended shelf-life.”
This action plan was intentional and strategic in nature. The company sought to cater to the current trends on the food scene, as well as what consumers can purchase to make life easier and more culinary pursuits effective.
“Cooking is hot, and fresh herbs are part of that trend. In the western world, the demand for live herbs in pots, in clamshells with roots intact and/or freshly cut has been steadily increasing for many years now. No surprise there!” Marketing Manager Jean-Francois Thomin shares. “What could be easier and more satisfying than snipping a fresh bouquet garnish on your own window ledge, balcony, or patio? Enza Zaden supports this development by offering both growers and end-users herb varieties that are less susceptible to diseases.”
Moving forward, the company hopes to grow its product offerings to benefit both customers and their consumers.
“Enza Zaden will continue to steadily expand its range of resistant and tolerant herb varieties for sale in pots,” Renaud says. “Those varieties lead to higher yields, fewer product losses at retail outlets, and greater satisfaction among end users—all in all, major advantages that will support the further growth of this category of products."
Fresh ingredients, fresh take on business, and fresh interest in an industry that keeps us all on our toes—what more could we want?
BENTONVILLE, AR - Walmart is expanding its operations in Latin America and accelerating its omnichannel capabilities after acquiring Cornershop, an online marketplace for on-demand delivery from supermarkets, pharmacies, and specialty food retailers in Mexico and Chile, for $225 million.
“We are focused on making life easier for customers and associates by building strong local businesses, powered by Walmart,” said Judith McKenna, President and CEO of Walmart International. “Cornershop’s digital expertise, technology, and capabilities will strengthen our successful businesses in Mexico and Chile and provide learning for other markets in which we operate.”
Bloomberg reports that Walmart will subsequently sell Cornershop’s operations to its Mexico-based subsidiary, Walmex, as a means to bolster the company’s expansion into e-commerce. The news source also notes that Mexico is a hot market right now, with Amazon also eyeing a possible strategic move in the country.
According to a press release, Cornershop—founded by CEO Oskar Hjertonsson, Chief Operating Officer Daniel Undurraga, and Chief Technology Officer Juan Pablo Cuevas—is rapidly expanding, with the number of unique users that are tapping into its online marketplace doubling in the past year.
“This is an opportunity to leverage both of our brands, as well as Walmart’s strong supply chain and store network. Combining Cornershop’s innovative, crowdsourced delivery platform with Walmart’s unique assets will allow us to accelerate growth for both companies, delighting our customers by saving them both time and money. We are excited to welcome Cornershop to the Walmart family,” McKenna continued.
Pending regulatory approval at the end of this year, Cornershop will remain an open platform that will continue to deliver from a variety of retailers.
With another acquisition under its belt—the retailer also invested in China-based Dada-JD Daojia and Japan-based Rakuten earlier this year—will Walmart come out on top in the global grocery marketplace? AndNowUKnow will continue to keep you in the loop on all grocery retail happenings.
NASHVILLE, TN - Every new year I spend in the produce industry, I fall deeper and deeper in love with our commitment to supporting and benefitting our peers. And now, after attending the Southeast Produce Council’s (SEPC) Southern Innovations in Nashville, TN, I am sure there are few opportunities more exemplary of that commitment than the Southern Roots program. Southern Roots, the SEPC’s leadership program for women, meets semi-annually for a luncheon during both of the council’s conferences. At this most recent event, attendees were lucky enough to be lead through an interactive discussion on “Making and Maintaining Meaningful Connections” by the always candid and sincere President and CEO of DMA Solutions, Dan’l Mackey Almy.
It’s no secret that the fresh produce industry is experiencing a shift in the culture of how we communicate with one another, and to that point, Dan’l was happy to share the insights she’s learned over her career on how to connect on a real level, whether that be through texting, emailing, or social media in all of its various forms. Despite all our differences—across generations, positions in the supply chain, time spent in the industry, and more—how do we use these methods of communication to create impactful connections? Curiosity, empathy, self-awareness, authenticity—these are all keys Dan’l says can help unlock meaningingful connections with fellow industry members.
I could write on and on about all the great points and wise words Dan’l and the rest of our group of women had shared, but really, I think they’d rather tell you themselves. I’d like to share a few words from the women I spoke with after the luncheon—on takeaways, on value, and the future of Southern Roots...
Dan'l Mackey Almy, President and CEO, DMA Solutions
"It was so moving to have the opportunity to open up a discussion in which 120 women could find common ground and share different ways we can foster and maintain relationships in this industry. Everyone in the room was so engaged, and I do believe we all left that session inspired to improve ourselves and strengthen our relationships. That is exactly the outcome the Southern Roots leaders had hoped for.”
Teri Miller, Senior Category Manager, The Fresh Market
“Early in my finance career, I learned that self-development was a key factor for my success. But self-development can be lonesome and incomplete without feedback or guidance. After joining the produce industry, I was astonished at the amount of support that was given to me from coworkers and business partners. However, I could see that NOT every woman had experienced the same. There was limited access to the ‘how to’s’ and a narrow outlet of people who would generously give feedback or guidance. This is what drove the creation of Southern Roots. Like everything else, I did NOT do this alone. A group of diverse leaders in the produce industry helped me work through the details. I then presented this to the SEPC Board—led by Terry Vorhees at that time—and they overwhelmingly supported the creation of Southern Roots.
The most difficult challenge is to provide topics, conversations, services, etc. that cross the generations and multi-leveled careers represented. But that is our committee’s single focus. Two sessions are offered each year, and at both sessions in 2018, this focus was achieved in an outstanding fashion. I’m not one to cry at all—not even for a Hallmark movie—but when I sit back and watch these women connect, share, and grow...I can’t help but to drop a few tears.”
Nicole Hulstein, Category Manager, Food Lion
“A key value for Southern Roots is providing the platform for meaningful connections. These connections are deepened through events like Southern Roots at Southern Innovations. The experiences that were shared allow for newcomers in the industry to glean ideas, leadership skills, and confidence to grow in this industry. It was magical!”
Sabrina Pokomandy, Account Manager, Highline Mushrooms
“Southern Roots encourages the growth and nourishment of relationships in this industry. The event was a success. Dan’l is a wonderful speaker—I feel she created a safe forum through story for attendees to share openly. I am thrilled to see our Southern Roots blossom from only 30 attendees to over 120 talented group of women at Southern Innovations. I am looking forward to connecting once again at Southern Exposure in March 2019.”
Leslie Simmons, Vice President, Dave's Specialty Imports
“You can't find someone more genuine and authentic than Dan'l. Her passion for fresh produce and people is tangible. Dan’l’s presentation was dynamic and heartfelt. It gave the women in the room a unique space to interact and open up about their challenges and the tools they use to overcome them. I was present at the first Southern Roots gathering and I think they have done a wonderful job serving the needs of the SEPC women. I look forward to more!”
Kim St George, Director of Sales & Marketing, Mann Packing
“Southern Roots does a fantastic job of bringing together influential women in produce from all backgrounds in a fun, yet intimate setting. The conversations, networking, and motivational learnings are invaluable and I always look forward to every Southern Roots gathering!”
Krysten DeGiglio, Regional Sales Manager, Village Farms
“One of my many takeaways from the Southern Roots Luncheon was to ‘be you.’ This was an underlying message throughout the luncheon that resonated with me, and many of the other women I spoke to at the conference. It reminded me of a quote I always liked from Sheryl Sandberg’s book Lean In: ‘As we learn to speak appropriately, we lose something in authenticity.’ While it is important to remain professional, never lose your authenticity because being yourself is what makes people trust you, remember you, and want to build a relationship with you.”
Amanda Keefer, Director Marketing Communications, Produce for Kids
“The Southern Roots reception is always a highlight for me at Southeast Produce Council events. Dan’l Mackey delivered a powerful, yet humbling message that spurred an engaging group conversation that lingered on long after the reception ended. To hear women in our industry of all ages and career stages stand up, share their experiences, and support each other was inspiring and motivating. The women within the produce industry are certainly a force to be reckoned with.”
MINNEAPOLIS, MN - I can hardly believe that we are quickly approaching holiday season—My God, did those words really just come out of my mouth, err, roll off my fingertips? Well, yes, they did, and it seems that Target is looking to get a jump start on the season’s necessities by hiring 120,000 new employees to be Santa's helpers. This is a 20 percent increase over last year’s hiring commitment. Further, the retailer is going to offer team members more hours to tap into their interest and availability.
As interest continues to surge in online and delivery options, the company aims to expand its Order Pickup and Drive Up services by increasing the number of team members. Target will be nearly doubling the amount of employees for digital orders when compared with last year. In addition to these added roles, Target will fill over 7,500 positions in its fulfillment and distribution centers this holiday season.
“Coming off a strong second quarter, we’re anticipating a busy holiday season and want to make sure we have the right teams in place across all of our stores and distribution and fulfillment centers to deliver an exceptional experience for our guests. This always starts by having conversations with our current team members to see if they’re interested in working extra hours before making our seasonal hiring commitment,” Chief Stores Officer Janna Potts shared. “Adding 120,000 people to our current team will make the holidays easier and more convenient for our guests—whether they’re in our stores, picking up their Drive Up orders or having a package delivered to their home.”
The retailer is also investing $2 million to reward team members working this holiday season with its new Work.Win.Give appreciation program—which will select one hourly team member from each of Target’s locations, either stores or distribution centers, and offer them a $500 holiday gift card and the opportunity to choose a local community organization to donate $500.
“As the marketplace becomes more competitive, the significant investment we’re making in our team, including our increased minimum hourly wages, sets Target apart,” Chief Human Resources Officer Stephanie Lundquist said. “This year, we’re thrilled to offer our new seasonal team members competitive pay, beginning at $12 an hour, and introduce a fun new team member appreciation program that builds on our efforts to help team members take care of themselves, their families, and their communities during the holidays.”
Team members hired after September 16th will start at $12 per hour, or minimum wage, but the retailer is working toward increasing its minimum wage to $15 per hour by 2020, according to a press release. Team members will also gain access to the following benefits:
- A 10 percent discount at Target stores and Target.com
- An additional 20 percent merchandise wellness discount on fruits and vegetables and all Simply Balanced and C9 Champion merchandise
- The opportunity to earn holiday pay on Thanksgiving and Christmas
- Flexible schedules that allow team members to work a variety of hours
There will be nationwide seasonal hiring events from Friday, October 12th, to Sunday, October 14th, from 10 a.m. to 6 p.m. at stores throughout the country.
For more news on how retailers are keeping up with demand this year, stick with AndNowUKnow.
WENATCHEE, WA - With temperatures dropping across the U.S., retailers can expect the pear category to heat up this fall—with ample opportunities to promote a larger crop coming off trees. And Stemilt Growers is offering retailers the opportunity to take advantage of this pear boom to increase sales and rate of pear consumption through branded products like Lil Snappers® kid-size fruit.
“Harvest is underway on the 2018-19 pear crop and the new season is already presenting itself with great promotion opportunities,” said Brianna Shales, Communications Manager, in a press release. “Pear volumes are up significantly over last year’s crop, with a great range of sizing to fuel both bulk and bag promotions. Retailers who carry Lil Snappers pears can boost category performance by selling more volume and marketing intent to a key shopper group in their stores.”
According to that press release, Stemilt’s Lil Snappers kid-size fruit program has grown tremendously since its launch in 2011 and continues to do so with its wide variety of pears available today.
Retailers can promote Lil Snappers pears in both the Bartlett and Starkrimson varieties, which are currently available in an organic 2 lb and conventional 3 lb pouch bag, with D’Anjou and Bosc varieties joining the mix next month.
“These popular summer varieties are eating exceptionally this year, and Lil Snappers' focus on kids can help retailers promote healthy kids snacks throughout the school year,” continued Shales—who also suggested that carrying pouch bags in store will help boost impulse purchases and purchase size by selling more volume. The average pear consumer purchases less than 3 lbs in bulk during a store visit, Stemilt noted, making its 3 lb pouch bag larger than the average bulk purchase size.
Shales also noted the various ways in which Stemilt is working to keep Lil Snappers in the spotlight.
“Tapping into the power of influencers and bloggers in key markets is extremely beneficial for the brand,” said Shales. “Those influencers reach parents via authentic, word-of-mouth recommendations, helping us create brand awareness around Lil Snappers and giving parents another healthy snack option for their kids.”
The Lil Snappers brand is nationally recognized and supported by various public relation efforts, including influencers, bloggers, and targeted social media ads.
Lil Snappers kid-size pears aim to please the parent consumer thanks to their convenient stand-on-its-own packaging and resealable press-to-close bag. Lil Snappers packaging is designed to catch the eye of the consumer—no matter what age—with bright colors, playful characters, and wide variety of flavors encourage consumers to grab a pear for a healthy treat.
“Lil Snappers® pears are the perfect item to carry this fall,” concluded Shales. “The retailer will push volumes and increase pear sales, while parent consumers can offer another healthy snack option for their kids. How can you go wrong with that?”
For more on promotional opportunities in our industry, keep reading AndNowUKnow.