PARSIPPANY, NY - Kings Food Markets and Balducci’s Food Lover’s Market is welcoming one of its longtime leaders into a new executive position. Stephen Palisi-Reynolds, formerly CPA, has been promoted to Vice President and Controller, in which he will assume additional responsibilities of the treasury function.
Palisi-Reynolds first began his career with Kings in 2008. He worked in the finance department as General Accounting and Financial Systems Manager. In 2015, he was then promoted to the Controller position, in which he was responsible for all internal and external company financial reporting, corporate tax filings, and Accounts Payable and Accounts Receivable, according to a press release.
“Stephen has consistently demonstrated that he is a collaborative, results-oriented business manager, and we’re thrilled to expand his portfolio and elevate his role,” said Jim Moriarty, Executive Vice President and Chief Financial Officer.
Palisi-Reynolds will report to Moriarty in his new role.
Congratulations to Stephen Palisi-Reynolds from the AndNowUKnow team!
NOGALES, AZ - Consumers in the U.S. may be paying a lot more for their Mexico-grown tomatoes, according to a recent Arizona State University (ASU) study.
If the U.S. Department of Commerce withdraws from the Tomato Suspension Agreement and applies duties on Mexican tomatoes, the Fresh Produce Association of the Americas (FPAA) warned in a recent press release, consumer prices could rise up to 40 percent on average in the period from May to December, according to the analysis conducted by economists at ASU. And prices on particular varieties of tomatoes could see increases as high as 85 percent.
“This makes no sense. Most Americans crave certain kinds of vine-ripened tomatoes, and now they are going to have to pay more, significantly more,” said Lance Jungmeyer, President of the FPAA. “The unmistakable conclusion of the study is that withdrawing from the Tomato Suspension Agreement will cost American consumers substantially more for a product that has become a major part of their daily diets. Americans can’t afford this kind of sticker shock.”
The study cited by the FPAA was led by Dr. Timothy J. Richards, Morrison Chair of Agribusiness at ASU. The analysis evaluated the impact the withdrawal from the Suspension Agreement will have on prices consumers pay for four varieties of tomatoes—including tomato-on-vine (TOV), vine ripe, Roma, and field/beefsteak—under several market scenarios. The analysis employs data from AC Nielsen.
Terminating the suspension agreement, the ASU analyst found, would reduce the supply of tomatoes in the U.S. market, and raise prices paid by American consumers, particularly during the winter tomato season (October through June).
The analysis noted that, during periods such as the winter, prices for certain varieties like vine-ripened tomatoes, tomatoes on the vine, and Romas could rise more than 85 percent.
“In general, tariffs levied on imports of fresh produce from Mexico are borne disproportionately by U.S. consumers. In this analysis, we show that retail tomato prices in the U.S. may rise by an average of approximately 40 percent if tariffs remove a substantial proportion of the Mexican supply during the critical winter-tomato supply period,” said Richards, according to the FPAA. Richards also noted that, should other factors affect supply of domestic tomatoes, the effects of new tariffs could be even more substantial. “In this regard, imports serve a critical shock-absorber function for U.S. retail markets, given the frequency and severity of supply shocks from weather, disease, or even labor-related events.”
The U.S. Department of Commerce intends to take up the issue of the tomato suspension agreement on May 7th. To learn more about the study, read the FPAA’s press release in its entirety here.
BOISE, ID - As we’ve reported previously, Jim Donald’s last day as Albertsons’ CEO is today, which coincides rather nicely with the retailer’s fourth quarter report results. As his sucessor, Vivek Sankaran, steps onto the scene, what state has Albertsons been left in? According to the Q4 results, it’s in a slightly better state than what Jim Donald inherited, thanks to growth in e-commerce and improving profitability.
“We are very pleased with the trends in our business as demonstrated by our strong results in the fourth quarter and full year,” stated Donald in a recent press release. “This performance in our core four-wall business is helping fund necessary investments into the business in both the four-wall and no-wall environments. We continue to deliver the balance sheet with a total net debt to Adjusted EBITDA ratio of 3.5x at the end of fiscal 2018, and have a clear path for further reduction.”
Highlights from the fourth quarter and full year reports include:
- Identical sales increased 1.1% during the fourth quarter and increased 1.0% for the full year
- Growth in GAAP pre-tax earnings in both the fourth quarter and full year
- Adjusted EBITDA of $727 million in the fourth quarter and $2,741 million during the full year representing over 14% growth in fiscal 2018
- eCommerce sales growth of 52% and 83% during the fourth quarter and full year, respectively
- Continued strong Own Brands sales penetration of 25.2% in the fourth quarter
- Total net debt to Adjusted EBITDA ratio reduced to 3.5x at the end of fiscal 2018
To read the entirety of Albertson’s financial report, please click here.
And for the latest in retail news, keep reading us here at AndNowUKnow.
BRENTWOOD, MO - The Produce for Better Health Foundation (PBH) has revealed its new Have A Plant™ consumer movement, which replaces the Fruits & Veggies-More Matters™ public education program, as a transformational approach to shifting fruit and vegetable behaviors, particularly among millennials and Gen Z.
Rooted in behavioral science and extensive consumer research, Have A Plant was created to answer consumers’ call for a simple, straightforward dialogue that speaks to their emotional food drivers and gets to the root of what all fruits and vegetables are—plants.
“If we want Americans to eat more fruits and vegetables, we need to engage them in relevant ways that align with how they are living in today’s rapidly changing, digital world. This is particularly true with millennial and Gen Z consumers, our target audience, which collectively, represent the largest demographic group in the United States,” said Wendy Reinhardt Kapsak, MS, RDN, President and CEO. “That’s why Have A Plant rallies around putting an end to prescriptive recommendations to eat a certain amount of fruits and vegetables each day and instead, fires consumers up with actionable, realistic, and FUN steps to connect eating fruits and vegetables with feeling happier and healthier. And, with more people trying to enjoy plant-packed meals more often, Have A Plant reminds them that all fruits and vegetables are delicious, nutrient-rich plants.”
According to the company’s press release, nearly nine in ten Americans still don’t eat enough fruits and vegetables each day. And, science continues to show that boosting consumption of these plant powerhouses can promote healthier, happier lives.
“The Produce for Better Health Foundation dares to inspire change and collaboration as well as push boundaries within the produce industry and beyond, to bring fruits and vegetables to the center of the plate when it comes to the plant-centric dialogue,” said Reinhardt Kapsak. “Our direct line to information-seeking influencers and consumers as well as our insights into their habits and desires drove us to create a lasting, behavioral science-backed movement, which will allow us to authentically and credibly advocate for healthier, happier lives by enjoying all types of fruits and vegetables every single day.”
PBH initiated an extensive behavioral science and consumer data analysis effort last year to identify effective strategies that could help motivate Americans to meet daily recommendations for fruits and vegetables and reverse lack-luster consumption trends. This multi-faceted research effort included conversations with 300 consumers; analysis of 1.2 million social posts; interviews with 23 produce industry stakeholders; and a deep-dive assessment of over 100 consumer behavior studies.
The findings were compelling to the foundation:
- Behavioral research suggests that content targeting millennials and Gen Z can be most effective when it shifts from a “knowledge-based” story of facts and figures, to more powerful, yet straightforward, ideas and actions based on “feeling” and “doing”
- Consumers are motivated by the immediate emotional satisfaction of eating fruits and vegetables, more so than longer term physical benefits. People report feeling happier and a greater sense of overall satisfaction in life when they eat these plant foods more often, which can often be more motivating as a driver than an emphasis on disease risk reduction
- Millennials and Gen Z categorize fruits and vegetables, each, very differently—and they want resources that speak to this differentiation. For many, fruit means sweet and happiness, while vegetables convey savory and smart, for example
- Social content analytics identified a current of advocacy naturally flows within digitally connected millennials and Gen Z, which can offer a compelling opportunity for the produce promoters to tap into, to boost fruit and vegetable consumption
PBH is unveiling Have A Plant with a comprehensive, consumer-driven suite of resources to support the produce industry and other produce promoters in their quest to help Americans increase their fruit and vegetable consumption and to meet dietary guidance such as MyPlate, which recommends consumers to “make half your plate fruits and vegetables.”
In addition to a new PBH Foundation logo and refreshed vision and mission, as well as the new Have A Plant consumer call-to-action, key components of the transformation include:
Comprehensive Digital Ecosystem and Integrated Content Strategy
- Tech-savvy millennial and Gen Z consumers crave food inspiration through various digital channels, so PBH is launching a visually stimulating and highly interactive website at fruitsandveggies.org. The new site is highly intuitive to fruit and vegetable information-gathering consumers and also contains numerous resources for industry members and influencers, featuring nearly 3,000 pages of content, more than 450 recipes, nearly 100 third-party contributors, and almost 20 new series of articles. More than 40 additional series of articles will be unveiled later this year
- With more than one million followers on Facebook alone, PBH recognizes the power of digital and social media with millennials and Gen Z. PBH has already refreshed its e-newsletters and social channels with improved content and images to answer consumers’ call for relevant information that makes shopping for, preparing and eating fruits and vegetables easier and more enjoyable
Expanded and Elite Influencer Network
- Millennials and Gen Z are inspired by individuals, including health and wellness professionals and beyond. That’s why PBH has created a new, elite network of 16 Fruit & Vegetable Ambassadors in Action, comprised of registered dietitians, chefs, sports nutrition and fitness gurus, and lifestyle experts, to offer consumers actionable, no-nonsense advice about enjoying more fruits and vegetables every single day. In addition, PBH is working with its members on a key opinion leader outreach strategy to increase the prominence of fruits and vegetables in the broader food dialogue, complementing its consumer-facing efforts
Enhanced Research and Thought Leadership Platforms
- PBH will continue to support food, nutrition, and behavioral research as well as consumer insights and education to better understand the health, well-being, cultural and lifestyle benefits of enjoying a wide variety of fruits and vegetables. The organization will also elevate its existing efforts to convene critical value chain stakeholders, health and wellness professionals, and thought leaders to identify and collectively activate against solutions to increase Americans’ fruit and vegetable consumption as part of the Have A Plant
For updates on the Produce for Better Health Foundation’s new campaign, keep reading AndNowUKnow.
PHARR, TX - It’s beginning to look a lot like VIVA. As the event quickly approaches, Red Sun Farms’ CEO of USA and Canada Operations, Carlos Visconti, and Senior Director and Head of Sales for North America, Harold Paivarinta, took the time to tell me why this is a must-attend, and in their case a must-exhibit, fresh produce gathering.
“Viva Fresh is a great venue to showcase the southern produce industry, including that of Texas, which is important for Red Sun Farms as it is our first U.S. location, and we currently ship over 18 million cases annually through our Pharr, Texas, facility,” Carlos says. “The show is filled with networking opportunities and educational sessions, while the trade show promotes conversations in a fun intimate environment.”
It is quite a schedule, kicking off with the fifth annual golf tournament Thursday, April 25, and finishing off with the Expo itself Saturday, April 27. When I ask what we can expect from Red Sun at booth #65, Harold’s answer is, in short, much.
“This year at Viva Fresh, Red Sun Farms will be showcasing our speciality lines, from snacking varieties to our savory cocoa tomatoes. However, our main focus will be our ground-breaking Sweetpops snacking tomatoes and our brand-new Sweetpeps, a 100 percent greenhouse-grown colorful mini pepper that comes in a convenient 8 oz bag,” he shares.
Viva’s well-noted for its convenient size and easy-to-navigate setup, but there is more Carlos says retailers and operators should know going into the show: “We would like our buyers to know that Red Sun Farms is a leader in the produce industry, and our Seed to Plate approach ensures the best in quality and flavor, as we control every aspect of the supply chain from seed selection to delivery. With farms located in Mexico, USA, and Canada, we are able to ensure service our customers demands 365 days a year.”
Don’t miss this and all other innovations and insights. The festivities kick off April 25 at the JW Marriott in San Antonio, Texas!
CHICAGO, IL - As the popularity of meal kits continues to rise, expansion and innovation are the next logical step. At least, it is for Kroger-owned meal kit company Home Chef, who recently announced plans to move its headquarters into the redeveloped Old Post Office in Chicago. The move will take place later in 2019, with hopes that the new location will accommodate further team growth. Home Chef will use the new 75,000-square-foot space to accelerate growth and innovation, develop new products, and expand the availability of current meal solutions. Joining Home Chef in the Old Post Office will be 84.51°, a Kroger-owned marketing agency that will occupy 57,000 square-feet of the new space.
"The growth we are seeing in both our e-commerce and retail channels has led to expansion in all areas of the business," said Patrick Sullivan, CFO of Home Chef. "It's important to us to have a space where we can continue to attract and retain top talent, while always remaining focused on our core commitment to our customers. We aim to deliver the best possible experience to anyone who wants an easy, convenient, and delicious answer to the dinner-time dilemma."
Delivering over 3.5 million meals per month, Home Chef is a major player among meal kit providers, and, according to the press release, was rated the top meal kit in customer satisfaction for two consecutive years. Following its $200 million acquisition by Kroger in 2018, Home Chef kits are available in more than 700 Kroger locations in the U.S., and plans are already underway to continue to grow its retail footprint in 2019.
"We're looking forward to bringing our whole corporate team back under one roof," said Sullivan. "As we are growing, we are identifying more opportunities to work cross functionally and believe that the Old Post Office, steeped in Chicago history, is the right space for us to do that."
Home Chef’s current Chicago headquarters in the Wrigley Building, satellite offices for the culinary and customer service teams, and state-of-the-art distribution center in Bedford Park, IL, house over 750 employees. There are even more Home Chef employees operating out of the company’s distribution centers in San Bernardino, CA, and Atlanta, GA, both of which opened in 2016.
"With our thriving tech and business communities, the State of Illinois is the proud home of countless entrepreneurs and startups, and we're thrilled to have Home Chef among the companies founded and growing roots here," said Illinois Governor JB Pritzker. "Innovators know that our top talent, world-class universities, and transit systems make us highly competitive and will support the growth of their businesses and our entire economy. As a businessman, I'm excited to see businesses grow, and we're excited for Home Chef's future in Illinois."
Home Chef got its start in 2013, when Founder and CEO Pat Vihtelic wanted to find a better way to get a delicious, healthy dinner on the table after working long hours. Founded in Chicago, Home Chef’s love affair with the city is still going strong.
"Chicago has become a real hub for technology and marketing with the arrival of some of the world's most innovative companies over the past few years," said Vihtelic. "It's also an incredible food city, full of inspiration and talent at every level and across every function. We are proud of our own history in Chicago and with an ambitious growth and expansion plan this year, we look forward to continued success at our new headquarters."
Chicago, it seems, is as happy to house the company’s headquarters as Home Chef is to be there.
"The Old Post Office is no longer just a vacant relic of Chicago's past, it is the new home of thriving companies that are contributing to our city's future," said Chicago Mayor Rahm Emanuel. "We are proud to welcome Home Chef to the growing list of organizations putting down new roots in the Old Post Office."
Keep reading AndNowUKnow for more retail updates.
PORTERVILLE, CA - Homegrown Organic Farms recently announced the retirement of Fred Berry, Senior Account Manager, effective May 31, 2019. After decades of service to the produce industry, Berry joined the company in 2015. During his tenure, he cultivated significant direct-to-retail relationships with the company’s citrus category and beyond.
“Fred brought savvy business acumen and extensive knowledge of the industry to the Homegrown team,” Craig Morris, Citrus Category Director, stated in a recent press release. “He will be greatly missed as he enters into this new retirement chapter.”
Berry earned his B.S. degree in Agriculture Economics and Business Management from the University of California, Davis, and was a member of the California Agricultural Leadership Program—Class 20. Prior to his time with Homegrown, he worked with Mulholland Citrus as its Director of Marketing. Throughout his career, Berry has maintained relationships with industry boards and affiliations such as California Citrus Mutual and California Fresh Fruit Association.
Homegrown noted that Berry’s contributions to the company and the ease with which he exuded its mission, vision, and values will be missed.
Congratulations to Fred on this new chapter in his life!
BENTONVILLE, AR - After finishing the year with a historical Q4, Walmart released its annual report and proxy statement this week in preparation for the company’s upcoming Annual Shareholders’ Meeting. The company touted robust earnings—including $514.4 billion in revenue—and the strongest two-year period of U.S. comp sales in nearly a decade.
“We had a good year, and I want to thank our associates for their great work and openness to change. They continue to inspire us as we strive to serve our customers better every day,” said President and CEO Doug McMillon, in Walmart’s earnings release earlier this year. “Progress on initiatives to accelerate growth, along with a favorable economic environment, helped us deliver strong comp sales, and gain market share. We're excited about the work we're doing to reach customers in a more digitally-connected way. Our commitment to the customer is clear—we'll be there when, where, and how they want to shop and deliver new, convenient experiences that are uniquely Walmart."
McMillon also outlined the ways in which the mega retailer was making efforts to continue to expand and strengthen its operations in a letter to Walmart’s shareholders released at that time—efforts that include expanding e-commerce operations and autonomous vehicle delivery, the implementation of more digital tools to streamline in-store shopping, and other forward-thinking initiatives.
McMillon also noted that “e-commerce has finally come to the food business and in a big way.”
Highlights from the company’s 2019 fiscal year included:
- Total revenue was $514.4 billion, an increase of $14.1 billion, or 2.8%. Excluding currency, total revenue was $515.1 billion, an increase of $14.8 billion, or 3.0%
- Walmart U.S. comp sales increased 3.6%. Grocery pickup and delivery are available in more than 2,100 and nearly 800 locations, respectively. Walmart U.S. eCommerce sales increased 40%
- Net Promoter Score and the company's Customer Value Index continue to improve
- The company generated $27.8 billion in operating cash flow and returned $13.5 billion to shareholders through dividends and share repurchases
The company also noted progress in the realm of grocery pickup, noting that pickup and delivery are available in more than 2,100 and nearly 800 locations, respectively.
“This is a period of significant change at Walmart,” McMillon concluded his letter. “I think the pace and magnitude of our changes are critical to the company’s future as we adapt to an environment that is changing more quickly all the time. We are changing how we work and what we do without changing our purpose and our values. To our customers, thank you. We’ll continue to work hard every day to earn your trust and business. To our associates, we are proud of you. Keep it going. To our shareholders, thank you for your interest in our company and your continued support.”
Walmart maintained its fiscal 2020 guidance projecting at least 3% consolidated net sales growth (adjusted for currency), 2.5% to 3% comp sales growth for Walmart U.S., and robust e-commerce net sales growth—up 35% for Walmart U.S.
Walmart's Annual Shareholders’ Meeting will take place on Wednesday, June 5, 2019. To browse the company's proxy statement in its entirety, click here.
To learn more, browse the highlights of Walmart’s annual and Q4 fiscal 2019 results here. For the company's complete shareholder presentation, click here.
MONTEREY, CA - Have you ever watched the X Games? Well, I’m here to tell you there’s an event more fearless, more extreme, more daring, and you, yeah you, can participate! With its Tech Knowledge Symposium, PMA isn’t just teaching old dogs new tricks. Rather, the association is making sure all dogs can do triple axels on a halfpipe—I don’t know if that’s possible in the world of sports, but it sounds cool, right? On May 1-2, PMA is gathering the produce industry in Monterey, California, as a means of helping the entire supply chain adopt, navigate, and take advantage of the flood of new technology solutions.
I had the chance to speak with PMA's Johnna Hepner, Director of Technology, and Vonnie Estes, Vice President of Technology, to find out why everyone on the supply- and buy-sides should be signed up and raring to go to this one-of-a-kind event.
“Tech Knowledge is unique in that it touches technology and innovation in all parts of the supply chain from growing, harvesting, post-harvesting, and distribution,” Vonnie shared with me. “The event is really about getting the right people in the room together. This year, we will include how innovation will be financially supported to provide solutions across the supply chain in the produce industry.”
This year, the event is all about education and conversation. Between high-profile speakers and roundtable sessions, PMA is ensuring attendees leave Monterey with a notebook full of products, applications, trends, and strategies all related to how to find, fund, and implement the latest tech solutions. This year’s speakers include an all-star lineup, with the likes of Microsoft’s Chief Scientist Ranveer Chandra, Harvest CROO Robotics’ CEO Paul Bissett, and PMA’s own CEO Cathy Burns, Chief Science & Technology Officer Bob Whitaker, and Vice President, Technology Vonnie Estes, and more taking the stage to share their industry knowledge.
When I ask Johnna what attendees should be sure to put at the top of their to-do list for the symposium, she emphasizes the roundtable sessions as the prime spot to network. Specifically, roundtables give attendees the chance to chat face-to-face with technology solutions companies about actionable insights.
“Over the years, Tech Knowledge has evolved from a trade show type of symposium with vendor booths and less education opportunities to the event it is today. This year’s event is packed with education around innovation and ways to provide solutions across the supply chain along with opportunities to network, build connections, and learn with each other,” Johnna explained. “We continue to look at how we can bring more value to the event for our members who are looking for solutions and opportunities to have meaningful connections in a small, intimate environment. The feedback we get from attendees and members alike has led to some of the changes and additions to the event that have evolved into what it is today.”
PMA Tech Knowledge Roundtables are by application only, business solution providers are encouraged to apply until March 22.
So, how can those in produce take advantage of the latest technology? The answer awaits you and your company at this year’s PMA Tech Knowledge Symposium! Register here before it’s too late!
To stay apprised of the latest produce events, stay tuned to AndNowUKnow.
DONNA, TX - Judging by top panel conversations at produce gatherings, not to mention the buzzwords of today’s industry, sustainability is a driving factor. While this has seen an increasing uptick, Kingdom Fresh’s actions say it saw the writing on the wall as far back as 2016.
“We have been offering biodegradable pack styles for three years now; we started before this recent movement from companies promoting these,” Jaime Garcia, General Manager, tells me, pointing to the announcement of the company’s compostable/biodegradable carton tray.
As suppliers continue to anticipate and react to retail demands for less plastic waste, Kingdom Fresh is only expanding an already existing focus.
As Alberto Gonzalez, CEO, shared with ANUK when making these initial strides known, “This packing is a huge reduction on the usage of plastic, which means less contamination in landfills. We believe that with a product grown from seed to tomato in a sustainable way, we have to also use packaging that reflects that.”
Having invested in lessening its environmental impact, the company is looking to expand what it packs in the compostable trays.
“We have seen how the industry is adapting to these changes from consumer pressure asking for a solution to the overconsumption of plastic and its years of decomposing. We now pack 35 percent of our organic grapes in these trays and are working on our organic roma and vine ripe 4 packs,” Jaime says, assuring me these will be available for buyers to view at Viva Fresh.
Don’t miss your chance to encounter this increasingly eco-friendly option in San Antonio, Texas. The Kingdom Fresh team will be there at booth #45.