GLENNVILLE, GA - With the official April 22nd pack date for the 2019 Vidalia Onion® season under our belts, growers are off to a dynamic start as they look to the harvest this spring. G&R Farms has had an enthusiastic but careful outlook on the season with supplies slated to ship through August.
Co-Owner Walt Dasher joins me to peel back the layers on the season from where he resides in Tattnall County and shares that he thinks the crop looks very good despite the weather issues faced during December.
“There were late plantings due to the rain in December, but the size and quality are looking very good as we aim to respond to the high-demand for the coveted Vidalia onion category,” Walt tells me. “It is yet to be determined how late plantings will yield in size for the storage crop, but we put all of our best practices in place for harvesting, storage, handling, and shipping which ensures we are able to put our best foot forward for our partners.”
Walt suggests that retailers offer good consistent promos during the fresh season and consumer pack promos possibly during storage, to tap into the value of the category during the spring and summer.
“As a 100 percent family-owned and operated company and one of the oldest active fully-integrated growers, packers, shippers in the industry, we offer a history of quality and premier product that is a testament to our business,” Walt says. “We are also able to offer some of the most unique packaging available. We really listen to our customers and allow them to tell us what we can do to help them to help their consumers and then give them the tools to do so.”
G&R Farms offers various packaging options throughout the season to give its customers various looks. This allows customers many options in which they can choose from to better suit their consumers’ needs.
And right out the gates, G&R Farms is hitting the ground running. Stay tuned to AndNowUKnow as we bring you more on the Vidalia onion harvest and from our friends in the category.
BOISE, ID - You say potato, I say potatobnb! The Idaho Potato Commission is entering a new market—the hotel market—with an all-new immersion experience unlike any before. Now, travelers can lay their weary heads to rest in a six-ton potato that has been completely renovated into an Airbnb room, according to a Facebook announcement.
“So, if you really just wanted to know what it’s like to be inside a potato as opposed to have a potato inside you, here’s a great opportunity to experience it,” said Frank Muir, President and CEO of the Idaho Potato Commission.
The Big Idaho Potato Hotel, as it’s listed on the Airbnb site, was formerly a part of the Big Idaho Potato Truck, which has been touring the country for the last seven years. Now, there’s a new spud (2.0) being pulled around the States, leading the commission to reach out to Kristi Wolfe. Wolfe then worked her tiny home magic and recycled the Big Idaho Potato 1.0 into a hotel room in honor of Earth Day.
According to the Airbnb listing, two lucky guests can stay at this surprisingly stylish one-bedroom-one-bath for $200 per night. The potatobnb, as I like to call it, sits on 400 acres outside of Boise on real Idaho farmland and even comes with, and I quote, the “cutest jersey cow in the world who will be your fuzzy pet for the stay.”
There you have it: For $200, you can stay in a giant potato in the middle of Idaho and rent a cow as your pet. This is the world we live in today—cool, yeah?
While it looks like the room is booked until June, check out the great potato getaway here.
IDAHO FALLS, ID - Food recalls are no fun for anyone in the supply chain, from producers to retailers to consumers. But what happens after the recall, when those food products return to shelves? Can shoppers find it in their hearts to forgive and forget? A recent study conducted by Category Partners (CP) asked those questions to determine what actually happens to recalled fresh food items once they re-enter the retail space. The study polled 1,000 consumers throughout the U.S., aged 25-65+.
The study reports good news, finding that consumers begin to buy formerly recalled products relatively quickly, though there is some discrepancy between retail departments. 49 percent of respondents say they would buy a bakery item within a week of its return to shelves, compared to 45 percent buying meat items, and just 38 percent buying a seafood item, according to the press release.
“Consumers are generally open to buy fresh foods after a recall, despite there being differences among departments, regions and demographic groups. It is important for the industry—producers and retailers—to rebuild consumers’ trust and do everything possible to provide food that is safe to eat and to communicate when and why it is safe again,” said Cara Ammon, Director of Research for Category Partners. “Some may take longer than others, but eventually the vast majority of consumers will feel comfortable buying these once-recalled items again.”
There are, however, some shoppers who will wait months to purchase a previously recalled item and some who never will again. Seven percent of shoppers reported they would only buy a product several months after the recall ends, and four percent reported that they will never buy it again.
Across departments, it was with seafood that consumers were least likely to buy a previously recalled item, with 11 percent waiting several months to buy again, and 11 percent who will never buy the item again.
Aside from the department the item is from, there are several other factors influencing consumers’ decisions to purchase recalled items again, including region, age, household income, and presence of children.
“While the differences are not quite outside the margin of error, we did notice that across all five fresh fresh departments, slightly more consumers in the South and Northeast said they would be willing to buy previously recalled fresh food items within a week of their return to the shelves, while consumers in the West are slightly slower to buy these items again,” Ammon commented.
Younger consumers, it turns out, are more forgiving than older consumers when it comes to recalled items. Over half of respondents aged 44 and under reported that they would buy produce, meat, deli, and bakery items within a week or less of the item returning to stores. Respondents aged 65 and older were much more stringent, with only 37 percent reporting they would purchase produce items, 33 percent for meat, 33 percent for deli items, and 29 percent for seafood items within a week or less of the product returning to stores.
The study reports that though consumers aged 44 and younger are more likely to have children in the home, consumers with children are more likely to purchase recalled items sooner than those without children.
Statistics for consumers with and without children include:
- 53% of respondents with children report that they would buy a produce item within one week or less or its return
- 43% of respondents without children report that they would buy a produce item within one week or less or its return
- 54% of respondents with children report that they would buy a meat item within one week or less or its return
- 39% of respondents without children report that they would buy a meat item within one week or less or its return
- 47% of respondents with children report that they would buy a seafood item within one week or less or its return
- 31% of respondents without children report that they would buy a seafood item within one week or less or its return
Women, the study reports, are more cautious than men when purchasing previously-recalled items, again, particularly with seafood.
Statistics for gender-based purchasing of previously-recalled meat and seafood items include:
- 54% of female respondents report that they would wait more than a month to buy recalled seafood items
- 42% of male respondents report that they would wait more than a month to buy recalled seafood items
- 39% of female respondents report that they would wait more than a month to buy recalled deli items
- 25% of male respondents report that they would wait more than a month to buy recalled deli items
Across all departments, consumers with higher incomes and higher levels of education are more forgiving when purchasing previously-recalled items.
Statistics for income- and education-based purchasing of previously-recalled items include:
- 58% of respondents earning over $150,000 per year report that they would buy recalled meat items within a week of the item’s return
- 41% of respondents earning less than $35,000 report that they would buy recalled meat items within a week of the item’s return
- 56% of respondents with a master’s degree or higher are likely to buy a recalled produce item within a week of the item’s return
- 44% of respondents with a high school diploma or less are likely to buy a recalled produce item within a week of the item’s return
For more produce-related reports, keep reading AndNowUKnow.
IRVINE, CA - Good morning, AndNowUKnow readers!
Today, I am bringing you some of the category and weather news from around the industry. Check back twice weekly to see where the rain is falling, the sun is shining, and everything in between.
HEAT WAVE IN CALIFORNIA CONTINUES THROUGH SUNDAY
The extreme high temperatures for California and Arizona, which started Wednesday, will continue through Sunday. Temperatures this week in the San Joaquin Valley are averaging 17° above normal for these dates.
What is the significance of these temperatures? Many crops in the San Joaquin Valley are only now coming on line and this heat will speed up the process. Cherries, blueberries, stone fruit, and veg such as broccoli are new crops that should all benefit from the heat.
As we have mentioned in the past, the cold winter in California provided a great number of chilling hours (much more than normal) and the tree and bush crops should be busting at the seams with fruit this year. Please check with shippers to confirm.
Bakersfield at the southern end of the San Joaquin Valley had a high yesterday of 97° while today and tomorrow will be 95° and 92° on Sunday.
Fresno in the middle of the valley saw a high of 96° yesterday and 95° today. Weekend highs will be in the low 90°s, but by Monday temperatures will drop down to the low 80°s.
Modesto in the north of the valley had a high of 93° yesterday and will be 91° today and tomorrow.
In the desert region of Coachella, high temperatures yesterday and today are 103° and will be 101° tomorrow and 97°on Sunday. Look for volumes of bell peppers to come on strong along with the other spring crops such as eggplant and tomatoes.
These temperatures should also be good for the upcoming melon crops out of the desert regions of Arizona and California. Please check with shippers on all commodities.
NEGATIVE EFFECTS
Crops that are at the end of the season will most likely be negatively affected. Citrus in the San Joaquin Valley for example will probably be stressed by these temperatures. Fruit still on the trees for this season's crop could be affected and they also might see some bloom drop for next season’s crop. Please check with shippers.
Another unintended consequence is the rapid melting of snow in the Sierra Nevada mountains that line the east side of the San Joaquin Valley. Certain rivers that flow from the mountains can expect flooding.
FLORIDA AND GEORGIA
Georgia will be in the mid-80°s to low 90°s the next ten days, with a chance of a light shower today.
Florida will experience the same temperatures with a greater chance of rain today, up to .35” in certain regions of the state.
Blueberries, peaches, and melons are the newest crops coming from these regions. The spring/summer crop of tomatoes out of northern Florida and southern Georgia is just around the corner.
MEXICO
Things in Mexico are very quiet at the moment. There doesn’t appear to be any weather patterns outside of the norm throughout the country.
Thank you again for your support, and we will be back next week with another update.
MONTEREY, CA, and WASHINGTON, DC - The United Fresh Produce Association and Produce Marketing Association (PMA) have recently commented on the collective efforts of the California-based leafy greens industry, who brought a months-long effort of improving auditable ag water standards to an LGMA Board vote and then adopting new, risk-based metrics.
Both organizations stated in a press release that they support the recent adoption by the California Leafy Greens Marketing Agreement (LGMA) to characterize, treat, and monitor all forms of surface water that will be used for overhead irrigation of leafy greens within 21 days of harvest.
“This effort represents a fundamental shift to better reflect well-established scientific knowledge on how we should think about water quality and risk,” said Dr. Jennifer McEntire, United Fresh’s Vice President of Food Safety & Technology. “We are no longer working on the assumption that water is safe based on a periodic, by the calendar, water test result; instead the industry assumes that surface water may present a risk to leafy greens and is proactively treating it during the period closest to harvest.”
According to a recent press release, the Romaine Task Force, co-chaired by United Fresh and PMA, has participated in the development of the new water metrics and will now evaluate this risk-based approach from the perspective of the leafy greens supply chain.
“This is a paradigm shift in ag water management,” said Dr. Bob Whitaker, PMA Chief Science Officer. “The key now is to undertake the education and training needed to implement the new metrics and most importantly, to begin learning about the effectiveness of the water metrics and continually improving them as the industry gathers data and distills the performance information.”
In addition to ag water, the Romaine Task Force also is focused on improving traceability through the supply chain, through retail and foodservice, developing a robust approach to root cause analysis, and improving the investigative process.
For the latest in fresh produce news, stick with us at AndNowUKnow.
IRVINE, CA - The California Avocado Commission (CAC) is taking advantage of its marketing tools to complement the launch of California avocado season and the start of advertising support. It will use a variety of influencers and their followers to share the benefits of avocados and commission messaging about California avocados specifically. CAC is taking up the opportunity to leverage popular topics of conversation, like hit television series Game of Thrones, among its targeted audience to get a quick response on social media.
“Winter is over. The California avocados are here,” said Jan DeLyser, Vice President of Marketing. “CAC’s topical, themed social posts are examples of the opportunistic, fleet-of-foot marketing that keep California avocados top-of-mind with our targeted consumers.”
According to the company's press release, the commission leveraged interest in the coming final season of Game of Thrones in early April, creating themed social media posts that asked, “Avocados or Dragon Eggs?” The posts had the highest level of engagement of any of CAC’s social posts to date, reaching more than 350,000 impressions, with 36,000 likes, more than 3,000 post shares or saves ,and over 800 comments. This engagement helped bring awareness to the start of California avocado season, with many consumers sharing their love for California avocados and excitement to begin using them.
“California avocado harvesting is going strong with one week’s volume this month reaching more than 11 million pounds, in time for the industry’s ramp up leading into Cinco de Mayo,” stated DeLyser.
During the California avocado season, influencer activity is ongoing. The commission is working with Registered Dietitian Nutritionist Liz Shaw to help spread the word about California avocado season and avocado nutrition information. Shaw contributed to CAC thematic content called “Cook Like a Californian” in April. Some of the content was featured on CAC’s The Scoop blog, and it included produce-rich recipes featuring California avocados. Further expanding the reach of the program, Shaw’s recipes are also included in communication used by retail dietitians.
For updates on CAC and the avocado season, keep tuning into AndNowUKnow.
LEEDS, U.K. and BENTONVILLE, AR - The $9 billion merger between Walmart-owned Asda and Sainsbury’s has been blocked by the U.K.’s Competition and Markets Authority (CMA). The CMA made the announcement this morning in a statement—noting that the merger between two of the U.K.’s largest supermarket chains would, in its estimation, result in “price rises, reductions in the quality and range of products available, or a poorer overall shopping experience.” The merger was first announced roughly a year ago.
“It’s our responsibility to protect the millions of people who shop at Sainsbury’s and Asda every week. Following our in-depth investigation, we have found this deal would lead to increased prices, reduced quality and choice of products, or a poorer shopping experience for all of their UK shoppers,” said Stuart McIntosh, Chair of the CMA’s inquiry group, in a statement. “We have concluded that there is no effective way of addressing our concerns, other than to block the merger.”
Sainsbury’s CEO Mike Coupe issued a statement condemning the decision and contesting that the decision will, in essence, “take [money] out of customers’ pockets.”
“The specific reason for wanting to merge was to lower prices for customers. The CMA's conclusion that we would increase prices post-merger ignores the dynamic and highly competitive nature of the UK grocery market. The CMA is today effectively taking £1 billion out of customers' pockets,” said Coupe. “Sainsbury's is a great business and I am confident in our strategy. We are focused on offering our customers great quality, value, and service and making shopping with us as convenient as possible.”
Judith McKenna, CEO of Walmart International, likewise expressed her disappointment with the ruling.
“We have been clear from the beginning of the proposed merger about two things,” McKenna noted in a statement. “Firstly, that retail is rapidly changing and standing still is not an option, and secondly that we will always ensure our international markets are strong local businesses powered by Walmart...While we’re disappointed by the CMA’s final report and conclusions, our focus now is continuing to position Asda as a strong UK retailer delivering for customers. Walmart will ensure Asda has the resources it needs to achieve that.”
AndNowUKnow will continue to report with updates.
VANCOUVER, CA - Canadian grocer Sobeys is making plans to take its company in a new direction by expanding its network of discount grocery stores under its FreshCo banner. The retailer will open the first of twelve FreshCo locations in Mission, B.C., in an effort to grow market share and keep up with the competition.
“Sobeys is far behind our competitors in terms of having a presence in discount,” said Mike Venton, General Manager of the discount format at Sobeys, a subsidiary of Empire Co., according to news source Lethbridge Herald.
Sobeys plans to open all 12 of its discount stores by the end of 2019; two Winnipeg locations are set to open in early May, and two Richmond, B.C., stores will follow that month. The retailer plans to choose regions with two or more full-service locations and convert one of the locations to the FreshCo brand.
The retailer operates more than 1,500 retail stores under a number of different banners, reports Lethbridge Herald. 87 percent of those stores are full-service, like Sobeys, Farm Boy, and IGA, leaving only 95 stores in the discount category. One of the retailer’s largest competitors, Loblaw, operates 488 discount format stores by the end of its 2018 financial year. Another competitor, Metro, operates 228 discount stores, mostly in Ontario and Quebec. Compared to its competitors, Sobeys is behind the times with the growth of its discount banners.
“If you look at Western Canada, we have zero presence,” Venton said.
Growing its discount market share in Western Canada will be one of the company’s strategic priorities for its 2019 financial year. The retailer initially announced plans to convert up to one quarter of its existing Sobeys and Safeway stores in Western Canada to the FreshCo banner in 2017, according to Lethbridge Herald.
The 12 planned FreshCo stores will strategically shift the retailer’s ratio of full-service to discount stores, though Venton said, “it will be a long time before we move that number significantly.” Still, Sobeys is betting big that changing the ratio will pay off in the long run.
“The key to us is to make a big splash when we go in and then compete and grow market share,” said Michael Medline, CEO of Sobeys' parent company Empire, during the company’s most recent quarterly call with analysts.
This discount banner expansion plan comes on the heels of a major misstep following its acquisition of Safeway in 2013 for $5.8 billion. Safeway customers became upset with Empire after it cancelled a popular loyalty program and caused several issues, including failing to keep items in stock. As a result, Empire launched its three-year transformation plan, Project Sunrise, to turn things around for the company.
With consumers craving value more and more, Sobeys knows that the continued growth of its discount brands is essential. And despite its slip-ups following the Safeway acquisition, Sobeys is confident it will see success as it expands into Western Canada.
“We have a tried and tested model that we’re very successful within Ontario,” said Venton.
Will this discount banner expansion pay off for Sobeys and carve out a place in the market? AndNowUKnow will keep you updated.
MONTEREY, CA - With July 10th and 11th on the horizon, it is never too early to start planning for the 4th annual Organic Produce Summit (OPS). The two-day event will bring a host of industry leaders together, from the supply-side to the buy-side, to talk shop about the important challenges in fresh produce as well as the opportunities gracing the sector.
Vic Savanello, Vice President of Produce for The Fresh Market, joins me as we look towards the summer show, with his own set of to-dos and what he hopes to discover at this year’s event.
“Organic continues to be an area generating great opportunities for growth at The Fresh Market,” Vic shares with me, adding that he is looking to develop a few contacts in a couple of key categories where The Fresh Market can continue to up its game. “Any insights that I can garner regarding variety and specialty items which might be available, is always at the front of my mind. The diverse exhibitor turnout ensures that our team will be able to have those important discussions about the impact of organic across the fresh produce industry.”
An event like OPS is essential to elevating the conversation around organics and Vic notes that often times the smaller organic suppliers are lost in the larger scale events in our industry.
“A show which features and focuses on the supplier with the utmost attention is long overdue and greatly appreciated by the industry. Also, the organic educational content far exceeds anything you would find in any of the many of the larger-scale events that I attend,” Vic tells me, “which I think is critical for the growth and success of the overall organic business.”
The Fresh Market defines its organic program as progressive and is an area of deep passion for Vic, as the company seeks to source some of the highest grade, best quality, highest spec offerings of organic items available. But also, The Fresh Market opts to carry an organic offering over a conventional substitute, in order to be in that business.
“This means that I will carry an organic version of an item when volume and shrink constraints dictate choosing one or the other. I want our products to be fresh and turn quickly. I’ll choose a lower margin on an organic SKU instead of carrying both an organic and conventional version of an item and creating shrink for both, or risk not being at peak quality on the shelf!” Vic reflects.
When I ask Vic how he sees consumer buying behaviors toward organic impacting the way consumers shop and build their overall basket, he shares that he thinks more consumers are choosing organic versions of items now that the cost and retail differential has become less imposing, simply based on appearance, size, or assumed quality.
“Organics are not exclusively just for the organic consumer anymore,” he says. “On the other hand, many more people are becoming a lot more informed on what is considered both healthy and safe and make buying decisions based off of what offers them the most consumer confidence.”
When it comes to how Vic is seeing consumer buying behaviors around organics changing or evolving in his own backyard or the industry as a whole, one interesting dynamic he notices is the behaviors around the consumer that purchases both organic and conventional produce in the same basket. This is, Vic believes, a consumer that feels there are some categories of fresh fruits and vegetables that they have a comfort level with as conventional and some that they do not, and opt for the organic option.
While there is much more I would like to pick Vic’s brain about, I realize I might want to leave some of the insights and questions for his participation at OPS’ Retailer Roundtable where the group will dive into organic produce category strategies, product mix, and how technology is changing the game. Tonya Antle, Co-Founder of the Organic Produce Network (OPN) will act as moderator for the Retailer Roundtable that will include panelists Don Barnett, Chief Operating Officer for Sun Basket; Greg Corrigan, Senior Director of Produce and Floral for Raley’s; and Vic himself.
So, looking for a bit more from Vic as well? Mark your calendars for the OPS 2019!
FISHERS, NY - Cailin Kowalewski is rising rapidly through the New York Apple Association’s (NYAA) ranks! This week, the association announced that Kowalewski would be taking on a new role—that of Account Manager—after only being with the company for one year.
Kowalewski first joined NYAA last year as Assistant Account Manager. Prior to joining NYAA’s team, Kowalewski was with Cornell Cooperative Extension—Wayne County, where she served as the Nutrition and Consumer Science Team Coordinator developing and identifying programs to address nutrition and community health needs, according to a press release. In that role, she also planned and managed local, state, and grant-funded programs, as well as provided oversight of grant objectives for the regional Farmers’ Market Nutrition Program Outreach Team. She graduated from Tufts University, Friedman School of Nutrition Science and Policy in 2015, with a master’s degree in food policy and applied nutrition.
“Cailin is a wonderful addition to our organization,” said Cynthia Haskins, President and CEO. “Over the last several months, she has become knowledgeable about our promotional programs and is developing relationships within retail and foodservice industries. As Account Manager, Kowalewski will also support NYAA’s work with retail dietitians. As we prepare to market the 2019 apple harvest, we are creating new promotions and opportunities for retail dietitians. Cailin will provide valuable support to these efforts.”
In her new role, Kowalewski will work and report directly with the retail and foodservice accounts across the country, two teams that are led by Haskins and include Northeast Account Manager Susan McAleavey Sarlund.
Congratulations to Cailin Kowalewski on this next step in her apple career!