WASHINGTON, DC - As part of its efforts to ensure fair trading practices within the U.S. produce industry, the Department of Agriculture (USDA) has imposed sanctions on five produce businesses for failing to meet their contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to the USDA’s press release, these sanctions include suspension of the businesses’ PACA licenses, and barring the principal operators of the businesses from engaging in PACA-licensed businesses or other activities without approval from USDA. By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
The following businesses and individuals are currently restricted from operating in the produce industry:
- Felix Farm Supermarket, operating out of West Covina, California, for failing to pay a $2,613 award in favor of a California seller. As of the issuance date of the reparation order, Fei Fan was listed as the officer, director and major stockholder of the business
- Unikorn, operating out of Riverside, California, for failing to pay a $10,091 award in favor of a California seller. As of the issuance date of the reparation order, Jorge Avalos and Evelyn Figueroa were listed as members of the business
- Simply Fresh Markets, operating out of Corona, California, for failing to pay a $38,097 award in favor of a California seller. As of the issuance date of the reparation order, Abdulrazik Dean Taha, Omar Milbis and Hanni Abdulrazik Taha were listed as the officers, directors and/or major stockholders of the business
- I5 Fresh Produce, operating out of Oakland, California, for failing to pay a $13,073 award in favor of a Nevada seller. As of the issuance date of the reparation order, Yahya Ahmed was listed as the officer, director and major stockholder of the business
- Black Hog Farms Inc., operating out of East Palatka, Forida, for failing to pay a $14,772 award in favor of a Florida seller. As of the issuance date of the reparation order, Jonathan Insetta and Luke A. Watkins were listed as the officers, directors and/or major stockholders of the business
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order 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 3,350 PACA claims involving more than $63 million. PACA staff also assisted more than 8,000 callers with issues valued at approximately $156 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
MINOT, ND - SpartanNash has announced plans to close a distribution facility in Minot, North Dakota, effective early next month. The company plans to transition the 39 customers its Minot facility services to its Fargo distribution center.
“Making a decision that affects associates’ lives and the communities in which we operate is never easy,” Meredith Gremel, VP, Corporate Affairs and Communications, noted in a statement reported on by local FOX affiliate KFYR-5. “However, we are obligated to make tough decisions when it is necessary to improve efficiencies and secure the long-term future of SpartanNash. We value our Minot associates’ contributions and are grateful for their service and dedication over the years.”
The statement continued, outlining the company’s efforts to relocate the Minot facility’s 42 employees.
“This decision is not a reflection of the 42 hard-working Minot associates but rather a strategic decision the company has made to optimize its network,” the company noted. “SpartanNash is committed to making this transition as seamless as possible for its approximately 39 Minot customers, while at the same time improving our efficiencies and product offerings. The goal is to complete the transition by early May. Minot distribution center associates were informed of the transition on Monday, March 4, 2019. The Human Resources team is working with associates who may be interested in relocating for an open position within another SpartanNash facility. Some Minot associates have been asked to remain with the company to maintain a relay hub in Minot. The building will be listed for sale.”
SpartanNash outlined an expansive strategy when reporting its fiscal year 2018 financial results this May. Will the closing of this facility be key in freeing up capital for future investment? AndNowUKnow will continue to report.
IRVINE, CA - As California avocado harvesting starts ramping up, the California Avocado Commission (CAC) has plans to get avocados into every Californian’s pocket! The commission recently kicked off its 2019 California advertising campaign, which focuses on its defined target of “premium Californians” and super avocado users—like me! The media plan is expected to run from now through beyond the peak Fourth of July avocado consumption period.
“Customers are chomping at the bit and we are excited that our marketing campaign is starting,” said Jan DeLyser, CAC Vice President, Marketing, in a recent press release. “With California avocado distribution focused in California and the West this year, it is critical that CAC targets our advertising geographically and we are using partners who have fine-tuned location targeting tactics to serve our retail messages.”
The press release also noted that CAC’s advertising plan uses highly-targetable media, including audio, outdoor, social, and digital streaming videos. Targeted audio advertising via Spotify communicates that California avocados are in season. CAC’s digital content partners weave together recipe usage ideas and California avocado-specific messaging.
CAC’s “Made of California” campaign graphics are extended for use in California outdoor ads, as well as digital and social advertising. Newly created videos on popular streaming platforms—like Hulu—feature California avocado growers and California avocado groves. Last year’s marketing program research showed that a video shot by a drone camera over a California avocado grove was the campaign’s most well-liked video. This season, CAC is building on a long history of featuring growers by creating more grower and grove videos.
CAC also is using social media and retailer-specific programs, including targeted digital throughout the California avocado season. These tactics support early season harvesting, mid-season peak volume availability, and will do the same for late-season supply.
Research conducted by Nielsen during the California avocado season last year from April 4 through September 4 compared opinions of consumers exposed to CAC digital advertising (tracked via ad tags) to those in the same markets who were not, and showed the approach is working. According to the commission, after campaign exposure brand awareness increased, and the percent of consumers who said they would recommend California avocados rose to 93 percent. CAC also learned that adults with household incomes over $75,000 were directionally more likely to say they preferred avocados grown in California after ad exposure.
“We are confident that our media plan reaches our 'Premium Californians' target, which includes male and female avocado shoppers as well as more specific demographic and mindset criteria,” concluded DeLyser.
For the latest on the California avocado season, keep reading us here at AndNowUKnow.
ORANGE COUNTY, CA - Zespri has announced that Jason Donaldson, Operations Manager for the Americas, unexpectedly passed away at the age of 46 on March 22, 2019 while on a business trip overseas.
“We are devastated by the unexpected passing of a great colleague and friend,” said Ben Hughes, General Manager, Americas. “Jason brought a contagious energy and enthusiasm to work each day and was liked and admired by everyone that worked with him. Most importantly, Jason was a devoted husband and very proud father who was very involved in his kids’ lives.”
Donaldson had a very successful career in the food industry, according to a press release. Prior to joining Zespri, he worked in operations management across a variety of food and beverage categories, including carbonated beverages and sushi, for twenty years. He also earned his MBA during that time. After being recruited to join Zespri Americas’ team as its Operations Manager, Donaldson formed a talented team and made a step change in the capability of Zespri's operations function in the region.
He is survived by his wife, Melinda, and their three children, Jake (13), Jenna (11), and Hank (7). Donations to help the family with unforeseen burdens can be made at the GoFundMe page.
The ANUK team would like to offer our deepest condolensces to the Donaldson family and the Zespri team at this time.
DONNA, TX - It is rare to see produce’s inside perspective portrayed in consumer-facing news, especially in the political ring, but that’s what happened this past weekend when CBS featured 40-plus year industry veteran Tommy Wilkins.
The Director of Sales for Grow Farms, Texas, was interviewed by the national syndication in pursuit of the ripple effects of border delays and possible closures on the consumer’s access to fresh produce.
“What has typically been a five-hour window to cross the border has gone to at least a full day—it’s just not the best thing for the commodities we handle,” Wilkins told CBS of the shift in CBP resources a few weeks ago. To give viewers perspective, he shared that Grow Farms is currently in the peak of avocado harvest, key to upcoming Cinco de Mayo meals, and that if we did not have the supply out of Mexico “we wouldn’t see the guacamole that we have opportunity to consume 52 weeks a year.”
While this is something we in the industry are well aware of, it was a huge step to see it come from CBS reporters, who in studio discussed that the average consumer doesn’t realize how critical the border is to what we eat.
As hosts Dana Jacobsen and Michelle Miller put it, “When it hits you at home in your refrigerator, and the price suddenly jumps, you wake up to it.”
Dante Galeazzi, President and CEO of Texas International Produce Association, shared with CBS that it isn’t just a food issue but an employment one as well.
“Politics aside, business is business. Trade is there, without the trade, without the flow we are going to start talking about job losses and no one wants to see that, it doesn’t matter what side of the aisle you sit on,” Galeazzi commented.
CBS reported that $14B worth of fresh produce comes into the U.S. every year from Mexico, half of it through the Texas ports of entry. Already, U.S. Senator John Cornyn asked that any long-term strategies keep trade in mind because it affects the entire nation.
Cornyn sent a letter to Acting Homeland Security Secretary Kevin McAleenan to make produce issues at the border a priority, writing, “The diversion of frontline CBP personnel from these ports, and the threat of a possible closure in the future, threatens to have a debilitating impact on the overall health of Texas’ economy.”
While solutions continue to be sought out to existing issues on both sides of the border, Wilkins implored officials to keep the fight in the ring, so to speak.
“For the food supply either there or here to be used as a political tool is a little discouraging to me. And they are using the produce consumption to battle the immigration issue,” he concluded. “Everybody in Washington needs to go to work, agree we have a problem, and fix it. Not use or disrupt the food supply to do that.”
As all sides continue to seek a resolution that will not impact the welfare of the food supply, AndNowUKnow will report the latest.
LAS VEGAS, NV - Terra Exports is ready to expand its South American division with the recently hired industry expert Manuel Escandon to be based in Chile. The company opened a new Tropicals Division in January 2019.
“Terra exports was an easy decision—I know the work team and I know their operations,” expressed Escandon. “It is a very dynamic company, and I was excited to work in a company that does business around the world. Thanks to my experience and knowledge of the industry, I know I will have great achievements here. I have a clear mission of growing the business in Chile, Argentina, and Peru in the short term, and am excited to be a part of Terra Exports’ long term vision.”
According to the company’s press release, with many large importers in the industry exporting fresh fruits, Escandon holds nearly two decades of industry knowledge growing exports for fresh fruits substantially. He has experience growing exports from inception, expanding into different markets, and reaching 3,000,000 boxes. He carries an excellent reputation throughout Chile, Peru, and Argentina with fresh fruit suppliers.
“To hire someone like Manuel reflects what has been happening lately at Terra Exports,” said Rodrigo Fernández, Managing Director of South America. “We have been growing organically and quickly, and need to hire people who thrive in this circumstance, like Manuel. His expertise, knowledge and his impressive industry will help the company reach its goals faster.”
As Terra Exports persists to see fast financial growth, innovation remains to be the company’s focal point. The company also continues to make strategic hiring choices to ensure it moves forward in the right direction.
Congratulations to Manuel from all of us here AndNowUKnow.
LOS ALAMITOS, CA - Passover will be celebrated from April 19 to sundown on April 27, the highlight of which is the Seder, a fifteen-step family-oriented tradition observed on the first two nights of the holiday. As Frieda’s Specialty Produce noted, the traditional celebration includes specific essentials like horseradish, but that doesn’t mean shoppers’ meals have to be completely conventional. Newer generations are celebrating Passover by incorporating other produce in their modern versions of Passover Seder plates—such as Stokes Purple® sweet potatoes!
“Those of us in the fresh produce business know that Passover has some very distinctive foods that are used at the Seder,” said Alex Berkley, Sales Manager, in a recent press release. “We know that shoppers will be looking for exciting Passover items at their local markets so we want to make it easier for them to find these holiday must-haves through merchandising. Try cross-merchandising horseradish and Stokes Purple sweet potatoes as a way to increase the basket ring during this springtime Jewish holiday.”
In a company press release, Frieda’s cites a recent article by reformjudiasm.org, in which it is explained how and why new additions are showing up on modern Seder plates. Such is the case for tubers, including potatoes and sweet potatoes. Frieda’s offers its own recipe: organic Stokes Purple sweet potato fritters with green tahini, created by chefs Heather Sperling and Emily Fiffer of Botanica. Located in Silverlake, CA, Botanica was named one of the Top 10 Best New Restaurants in 2017 by LA Magazine.
For the latest in fresh produce news, keep reading us here at AndNowUKnow.
AUSTIN, TX - Earning recognition from a retail giant like Whole Foods must feel extra special. The winners of the retailer’s seventh annual Supplier Awards have been announced, and it’s a fine group of companies. The Supplier Awards were created to honor suppliers that embody Whole Foods’ values and mission through proven commitment to quality, environmental stewardship, innovation, organic integrity, and partnership. The 2018 winners were honored at a reception held in Austin, TX, on April 10.
“We’re proud to recognize these suppliers who offer outstanding products aligned with our mission, values, and the high quality standards that we’ve championed for nearly 40 years,” said A.C. Gallo, President & Chief Merchandising Officer, in a press release. “This year’s honorees were selected from thousands of brands and represent the best-in-class in sourcing, industry-leading innovation, and win-win partnership.”
In total, 30 awards were distributed, with recipients including local, regional, and national brands across perishable and non-perishable product categories. Two global suppliers and 11 regional partners were named “Supplier of the Year,” with a variety of others recognized for outstanding achievements in various categories that reflect Whole Foods’ core values. The winners and honorees were selected by the company’s category experts and buyers who work closely with suppliers.
Forever Cheese was recognized for Raising the Bar for Quality
Among the companies receiving Special Recognition was Vive Organic, a health-conscious juice “shot” company, working in line with Whole Foods’ mission of delivering healthy foods. Driscoll’s was another company that received Special Recognition for its outstanding efforts to provide consumers with access to more fresh, delicious berries.
Awe Sum Organics was honored for its Organic Commitment to ensuring great tasting organic fruit supplies are plentiful. In the Rookie of the Year category, Alpine Fresh Inc. received honors for bringing fresh fruits and vegetables from its farms to Whole Foods customers. The coveted Local & Regional Supplier of the Year, Southwest region, went to Val Verde Vegetable Co., Inc., a company whose cutting-edge farming and ranching operations supply Whole Foods with more than 50 produce items year-round.
Global Suppliers of the Year included Wild Planet Foods, named for Environmental Stewardship, and Luke’s Lobster, named for Purpose Driven Empowerment. Both were honored for elevating Whole Foods’ standards for sustainable seafood sourcing.
Other honorees include:
- Forever Cheese - Raising the Bar for Quality
- Thompson Farms - Raising the bar for Qualtiy
- SmithFoods - Outstanding Innovation
- OSI Industries LLC - Outstanding Innovation
- Nature’s Path - Organic Commitment
- Cocokind - Purpose Driven Empowerment
- SmartSweets - Rookie of the Year
- Bonnie’s Jams - Rookie of the Year
- Tsar Nicoulai Caviar - Environmental Stewardship
- 4 x 400 Consulting - Service and Partnership
- Inno-Pak, LLC - Service & Partnership
- Aramouni International, Inc. & Nature’s Healthy Gourmet, Inc. - Local & Regional Suppliers of the Year, Florida Region
- Inspire Pure Botanicals - Local & Regional Suppliers of the Year, Mid-Atlantic Region
- FILLO’S Americas Made - Local & Regional Suppliers of the Year, Midwest Region
- UTEC, Inc. - Local & Regional Suppliers of the Year, North Atlantic Region
- Humphry Slocombe - Local & Regional Suppliers of the Year, Northern California Region
- Crown Finish Caves - Local & Regional Suppliers of the Year, Northeast Region
- Woodlot - Local & Regional Suppliers of the Year, Pacific Northwest Region
- SoulRise Tribe - Local & Regional Suppliers of the Year, Rocky Mountain Region
- La Farm Bakery - Local & Regional Suppliers of the Year, South Region
- Pensieve Foods LLC - Local & Regional Suppliers of the Year, South Pacific Region
Congratulations to all the winners!
LOS ANGELES, CA - Bolthouse Farms is officially under a new company, after months on the market. Private equity firm Butterfly announced today that it has signed a definitive agreement to acquire the formerly Campbell Soup Company-owned fresh food supplier for $510 million in cash. This transaction marks Butterfly’s fourth investment within its “seed to fork” approach.
“We are thrilled to partner with a vertically-integrated produce and fresh food leader with a history as rich as Bolthouse Farms, and we believe the company’s future is very bright especially given the continued rise of plant-based food in the diet of today’s consumer,” said Butterfly Co-Founder Adam Waglay.
Bolthouse Farms—a vertically integrated food and beverage company focused on developing, manufacturing, and marketing proprietary, high value-added natural, healthy products including fresh carrots and refrigerated premium beverages and salad dressings—operates over 65,000 acres of growing land; facilities in California, Illinois, Ontario, and Washington; nationwide fresh distribution capabilities; and a state-of-the-art carrot and beverage processing plant, according to a press release. The company employs approximately 2,200 workers.
“We are proud to support Bolthouse Farms in further bolstering its strong positioning within fresh carrots and chilled premium beverages, and are excited to back a group of seasoned operators as passionate about produce as Jeff and his team to lead what is already a strong organization,” said Dustin Beck, Butterfly’s other Co-Founder.
As part of the transaction, Butterfly’s Operating Partner Jeff Dunn will assume the role of CEO of Bolthouse Farms. He previously served as Bolthouse Farms’ President and CEO from 2008 to 2016.
“Bolthouse Farms holds a special place in the produce industry and my team and I are deeply committed to strengthening and broadening Bolthouse Farms’ unique legacy,” said Dunn. “We can’t wait to get started.”
The closing of the transaction is subject to regulatory approvals and customary closing conditions and is expected to occur in summer 2019.
For more of our industry’s freshest news, keep following AndNowUKnow.
IRWINDALE, CA - Bonduelle Fresh Americas has initiated a plan with its growers to ensure the safety of its leafy greens supply through the 2019 California growing season, effective May 1, 2019. This new policy comes after the wake of recent outbreaks involving leafy greens, which were possibly linked to agricultural water.
“Safety has always been our highest priority and Bonduelle Fresh Americas continues to be committed to delivering the safe, fresh and healthy products our customers and consumers have come to expect from us,” said Mary Thompson, CEO. “Since day one, we have been a part of the initiative to heighten agricultural water standards and truly believe it is critical to do so as soon as possible to protect our leafy greens supply from possible agricultural water contamination.”
According to the company’s press release, Bonduelle Fresh Americas Food Safety Team conducted assessments of 100 percent of growing fields over the last several months, focused on water sources, distribution systems, irrigation methods, treatment methods, and other important aspects of our growers’ agricultural irrigation systems in preparation for the upcoming 2019 California growing season. With this knowledge, the company established its agricultural water management requirements for its growers which include:
- Preseason Assessments: Treatment Requirement (Overhead Irrigation): For any open agricultural water systems (such as, surface water, water transported by canals or water held in irrigation reservoirs) we require our growers to treat the water during the last 21 days of the scheduled harvest to reduce the risk of pathogens
- Other Aerial Applications: For any other aerial applications, such as crop protection chemicals, we require our growers to either meet the microbial standards of drinking water or treat the water to reduce the risk of potential pathogens of all water sources.
For updates on Bonduelle Fresh Americas’ new water safety plans, keep reading AndNowUKnow.