CPMA 2019
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.
EXPECT HIGH WINDS TODAY OUT WEST
Today and tomorrow most of California and Arizona will see above normal wind speeds. In the desert regions of the Coachella Valley and Yuma, they will see wind speeds of 28 mph today and 26 mph tomorrow.
Along the coast, Santa Maria will see wind of 32 mph today and 24 mph tomorrow, while Oxnard will get to 27 mph today. The entire San Joaquin Valley will also see high winds, with Fresno topping out at 30 mph today.
By Thursday things should return to normal.
COACHELLA BREAKS 100° FOR THE FIRST TIME THIS YEAR
California is experiencing a mini heatwave that will last through today. Yesterday, Coachella got to a temperature of 101° and today is forecasted to be 96°. By tomorrow, the highs will be in the 80°s and by Friday they can expect a high of only 78° before heating up again next week.
Yuma reached 99° yesterday and 97° today, but will also cool down into the 70°s before heating up again next week.
The cooler temperatures on Friday are due to some unstable air passing through that as of today has a 15 percent chance of bringing light showers to parts of California.
FLORIDA TO SEE OFF AND ON SHOWERS THIS WEEK
Today, all Floridian growing regions will see some rain. Totals will range between .25 - .40” of rain depending on the area. Please check the app for specific totals by location. There are more showers predicted for this Sunday through Wednesday of next week. Maximum temperatures will remain in the upper 80°s and touch 90° by next Monday.
I wouldn’t think the rains today should affect harvests but please check with shippers.
SALINAS
Salinas was warm yesterday getting up to a maximum temperature of 71° and a minimum temperature of 53°. Things will cool off today, with a maximum of only 65° and a minimum of 47°, and don’t forget about the high winds. High temperatures will remain in the 60°s the rest of the week. Saturday will warm up again above the 70° mark, but will be back in the 60°s by Sunday, with minimum temperatures in the upper 40°s.
There is a 20 percent chance of rain on Friday as the unstable air makes its way through California.
GEORGIA
Expect scattered thunderstorms through the state today with rain totals of around .25”. Daily rain chances are around 20% until Sunday when the possibilities rise to 50% and a total of .25”. Temperatures throughout Georgia will max out in the lower 80°s and minimum temps will be in the low 60°s over the next ten days. Georgia is waiting for their spring harvest to begin.
MEXICO - CULIACÁN
Temperatures have been very warm in this region of Mexico, but will cool off as we go through the week. Yesterday saw a maximum temperature of 98° but temperatures will drop daily and by Saturday the high will only be in the upper 80°s where it will remain through Tuesday of next week. The minimum temperature will range from the mid-50°s to upper 50°s. This region is now on the backside of its production cycle and the plants are not as strong. With the extreme warm temperatures they have seen over the last 10 days you might want to keep an eye on quality from this region.
COASTAL EASTERN MEXICO
The citrus growing regions of eastern Mexico has seen stable temperatures with highs in the upper 90°s throughout the week. Some regions will see some rain while other will stay mostly dry. Please refer to the app to determine exact locations for rain.
TORREÓN
The shadehouse growing region in the state of Coahuila will see high temperatures ranging from the mid-80°s to the mid-90°s and low temperatures in the mid-50°s over the next 10 days. We should production out of this region within the next two weeks.
OBREGÓN
Temperatures have been very warm over the last week. Today will see a high temperature of 100° but will begin to cool off starting tomorrow and by Saturday the maximum temperature will only be 81°. Minimum temperatures will remain stable in the mid-50°s all week.
MICHOACÁN
The avocado growing regions of Michoacán can expect high temperatures in the low to mid-80°s this week with minimum temperatures in the mid to upper 40°s. The coolest minimum temperatures will be the nights of Friday and Saturday when it will dip to 44°. This is about 7° below normal for this time of year.
BAJA CALIFORNIA
Temperatures along the peninsula will cool off throughout the week dropping from a high of 78° yesterday to a high of only 65° on Friday with a chance of rain in San Quintín. Further down the peninsula Vizcaíno will drop from a maximum high of 97° today to only 74° on Friday.
Thank you again for your support, and we will be back later this week with another update.
ORLANDO, FL - We’re in the thick of show season, and let’s be real, would we all have it any other way? It’s the time to see the latest and greatest in produce, like the offerings from Pure Flavor’s new Georgia greenhouse, under its new Georgia Grown brand. I spoke with Chief Marketing Officer, Chris Veillon, to learn a bit more.
“We’re focusing on everything grown in Georgia,” Chris told me on the show floor when I asked him what the company was showcasing this year. “Pure Flavor created a brand-new greenhouse that was built in late fall 2018, and with the first crop of tomatoes and cucumbers picked in early December.”
As we’ve previously reported, the greenhouse grower's new facility was built to service key retail and foodservice partners in the region, allowing Pure Flavor to open other markets with additional products.
“We are the first large-scale greenhouse operation producing year-round in Fort Valley, Georgia,” Chris said, “and we’re currently producing tomatoes on the vine, sweet cocktail tomatoes, long English cucumbers, and mini seedless cucumbers.”
To learn more, watch our brief video interview above, and as always, stick with us here at AndNowUKnow to hear about everything produce-related.
RIVERSIDE, CA - Index Fresh is pleased to announce the appointment of Santiago Pacheco, Manrique Palacios, and Juan Valdez to new roles in which they will lead teams at its California and Texas locations. The California-based company hired Pacheco as VP of Operations, while Palacios transitioned to his new role as Plant Manager, Bloomington, CA, with Valdez taking on Distribution Center Manager, Pharr, TX.
“I enjoy that people go out of their way to teach you the avocado business at Index Fresh,” said Pacheco. “I love eating avocados, and I am very happy to be a part of a team that sells and distributes healthy food while building meaningful partnerships.”
Pacheco joined Index Fresh in June of 2018. According to the company’s press release, as VP of Operations, Pacheco will oversee Index Fresh’s facilities in Bloomington and Pharr, logistics and transportation, as well as all third-party warehouses and ripening centers across the country. With over 30 years of experience in the food and beverage industry, Pacheco joins Index Fresh with an understanding of operations from planning, production, procurement, transportation, warehouse operations, customer service, human resources, maintenance, and engineering.
Palacios brings over 15 years of supply chain, logistics, project management, and operations experience in consumer packaging goods, fresh produce, import/export, and transportation from his previous roles at PepsiCo, Verenium Corporation, and Wonderful Citrus. Palacios joined Index Fresh as the Distribution Center Manager of the then newly-opened Pharr facility in June, 2017.
“Running the Texas facility helped me learn about the avocado industry,” expressed Palacios. “I’ve gained a strong understanding of operations at Index Fresh as I continue learning about the business. Now, I’m looking forward to working even more closely with our great team in California to run a safe and efficient operation.”
He was promoted to Plant Manager in Bloomington this year. Palacios helped start up the state-of-the-art Index Fresh facility in Pharr, TX, building a high-performance team to create a successful distribution and packing operation for the company. In his new role, he is responsible for overall plant operation in Bloomington, including packing, ripening, warehouse management, procurement, demand planning, and shipping and receiving.
Valdez, a Texas native, brings with him years of experience in producing and distribution, specializing in warehouse management. Valdez has stepped up as a Distribution Center Manager in Pharr, TX.
“I’m looking forward to growing as a leader at a company that continually demands excellence, while still promoting a healthy and positive work environment,” disclosed Valdez. “And, a big plus is that I love avocados.”
He joined the Index Fresh Pharr team as Warehouse Manager in September 2017, working closely with his predecessor, Palacios. His familiarity with the operations at Index Fresh, especially the Pharr facility, strengthens his transition into overseeing overall plant operations in Texas.
The company has been aiming to improve operations and efficiency over the last six months and, as stated in the press release, Index Fresh is delighted to have familiar faces in its new Texas and California operations roles.
For updates on the Index Fresh team, keep reading AndNowUKnow.
MEXICO - If the grocery retail landscape was a medieval jousting tournament, I think it is safe to assume that all the grocers attending would come armed, even if secretly—you never know what your opponent might pull, so it’s better to be ready. Walmart Mexico, however, not only came ready but is now advancing upon Amazon with an unsheathed sword as a means of protecting one of its hottest markets and preventing the e-tailer from growing any further.
This week, news broke that Walmart Mexico is “penalizing” food companies supplying groceries to Amazon, which has led some suppliers to sever their ties with the e-commerce giant, according to Reuters.
The news source interviewed two Mexican suppliers, who said that the disparity between the prices both Amazon and Walmart listed their products at resulted in Walmart forcing its suppliers to choose between the retailers by docking their payments. Both suppliers explained that this has costed them tens of thousands of dollars collectively and ultimately forced them to remove their products from Amazon’s listings.
Ignacio Caride, Walmart Mexico’s VP E-Commerce, however, asserted that, “We [Walmart] could never tell anybody that they can’t sell to someone else. If we think there’s an opportunity to lower our prices, because we see better prices at other retailers, we’re going to negotiate for that access.”
The Daily Star reports that Walmart is one of the largest retailers operating in Mexico, dominating nearly 60 percent of its grocery sales both on- and offline. Amazon, while only having joined the market in 2015, and just the e-commerce sector at that, has already caught up to Walmart. This has led many in our industry to wonder if Walmart Mexico’s latest move is to counter any of Amazon’s advancements before they happen in, what Reuters notes, is Walmart's second-largest overseas market.
“They’re worried that Amazon will grow in Mexico,” said Bill Bishop, Co-Founder of Brick Meets Click. “They’re saying: Be aware of the fact that we’re not going to make it easy for you to grow here.”
Will Walmart’s supplier strategy help it in the long-run stay one step ahead of Amazon in one of its hottest markets? AndNowUKnow will continue to report.
SALINAS, CA - As far as the spotlight goes, this should be a high time for celery, which is branching out from its reputation as a vehicle for peanut butter and cream cheese. Low supplies and uncharacteristically high demand, however, has created the perfect storm for a tight market. Sammy Duda, among the fourth generation to help lead Duda Fresh Farms, took some time to walk me through the current climate.
“Supply is significantly short due to the amount of volume and yield we lost from weather on both coasts,” Sammy shares, telling me that weather anomalies on both the East and West Coast growing regions made it impossible to offset one another. In other words, we are in the midst of a change, with the experts already working to bring balance back. “Change does not happen overnight—supply will improve once we respond and adjust to this new normal of celery consumption. Working with Mother Nature, this will take roughly 6 months for supply to meet the new demands of the category. It’s important to note that supplier and retailer communication is key to capitalizing on trends like this."
The new demand spike is at least in part thanks to celebrity interest inspiring a new prospective fanbase.
“The celery market as a whole is afflicted with considerable crop/yield loss. Towards the end of 2018, the celery market supply was flat, but aligned with typical industry demand. Then in late December, we saw demand go through the roof with celebrity endorsements for celery juice,” Sammy says. “The market was unable to react because the supply was still aligned with historical demand patterns. Erratic weather coupled with this exponential increase in demand has caused prices to skyrocket, and new consumers who’ve never bought celery before are beginning to buy at this never before seen retail price.”
Per capita consumption of fresh celery in the U.S. was recently decreasing after remaining steady. The Duda team shared that USDA Economic Research Service showed in 2017 per capita consumption of fresh celery was 4.6 pounds per person. The high of 6.4 pounds per person was reached in 2001.
“Never did we ever anticipate such an increase in demand. With this historical spike in demand, we as farmers can’t react quickly enough to increase supply. It takes roughly 6 months from planting to harvesting, so we did not have time nor could we really react to this top consumer trend,” he explains.
Even so, as the industry looks to put steps in place to tip the scales back, Sammy says we need to entice a younger demographic to purchase celery and encourage consumers to utilize it. According to IRI data, national total celery dollar sales showed an increase of 3% over the same period a year ago for the 52-weeks ending Dec. 30, 2018 and volume showed a 5% increase over the same time period. Snacking and convenience, he adds, have both been factors in increasing demand across retailers all over the country.
“We continually look at the category to determine movement and consumer interests,” Sammy tells me. “When celery production decisions are made, it takes about a year to turn it around. While demand continues to rise, supply is not expected to increase until summertime. We have never seen market conditions like this in the celery category and the Duda family has been farming celery since 1926.”
Celery was Duda’s first cash crop; who better to help guide us through this ambiguous time? As we continue to follow this and other key categories, keep reading AndNowUKnow for the latest.
ORLANDO, FL - Florida grocery king Publix clearly has no intention of giving up its crown to some young upstart, as it is currently sizing up a new location in downtown Orlando. The retailer plans to use this location for one of its small-concept stores in an attempt to court consumers’ favor by offering up fresh, specialty products.
As part of the company’s further expansion into the Florida market, it has been eyeing a 15,000-square-foot location, formerly occupied by Ferg’s Depot bar and restaurant, which closed last August, reported the Orlando Business Journal. While the retailer operates another store about one mile away, this new store will be decidedly smaller. GreenWise Market, the company’s new small-concept banner, first debuted in Tallahassee last year, we reported earlier, and is most likely the store that would take up residence in this location.
However, the plans for this new location are in line with the booming Orlando urban market, one which many competitors are trying to corner. Both Lucky’s Market and Southeastern Grocers are attempting to expand their presence in the area, and the Orlando Business Journal reports that Dollar General and Duckweed Urban Grocery are also looking to move in on the competition.
Publix is committed to continuing to build on its small-concept stores, as the Tampa Bay Business Journal reported that the grocer disclosed its prototype sizes in its March regulatory filings. The stores ranged from 20,000 to 60,000 square feet; the annual report for 2017 lists the size range beginning at 28,000 square feet.
According to the Orlando Business Journal, Publix has recently ramped up efforts to invest in real estate and technology, allegedly spending $1.53 billion on “supermarkets, remodeling existing supermarkets, new or enhanced information technology hardware and applications, and the acquisition of shopping centers with the company as the anchor tenant.”
Will Publix lock down this new Orlando location? Will the new-concept store upend the competition? AndNowUKnow will keep you updated.
MONTREAL, CANADA - Lots to see and do at this year’s Canadian Produce Marketing Association (CPMA) Convention and Trade Show. If you weren’t too busy, then I’m sure your eyes were arrested by Litehouse’s latest product innovations, namely its reformulated dressing line. The new line features products such as Organic Pourable Dressings, new Apple Cider Vinaigrettes, Pourable Vinaigrettes, Snack Packs, and Freeze Dried Herbs.
According to a recent press release, the reformulated products deliver on consumers’ growing hunger for healthier foods.
Details of each new product are as follows:
Organic Pourable Dressings: Fresh New Look, Even Better Taste
The reformulated Litehouse Organic Pourable dressings address consumers’ demands for healthier products with cleaner ingredient panels. Featuring a fresh new look and improved dairy-free formula, the Organic Pourable dressings are Certified USDA Organic, gluten free, non-GMO, and made with sugars from natural sources, including honey, agave, and juices. The organic, dairy-free dressings are available in a mix of top-selling flavors including: Balsamic Vinaigrette, Caesar, Ginger with Honey, Lemon Herb Vinaigrette, Ranch, and oil-free Raspberry Vinaigrette. The dressings are packaged in a 332 mL pourable glass bottle with labels that feature real food photography. Litehouse Organic Pourable dressings have an SRP of $4.99-$5.99.
Apple Cider Vinaigrettes: Lower in Calories, Big on Flavor
New Apple Cider Vinaigrettes are the latest RSD innovation from Litehouse, and will cater to consumers seeking lower-calorie dressing options with simple ingredients and unique flavors. A trending product category, apple cider vinegar is expected to see double digit annual growth over the next three years, driven by consumer interest in the perceived health benefits. The dairy-free, better-for-you vinaigrettes are made with an apple cider vinegar base, contain 5 calories or less per serving, and are available in four flavor-forward combinations: Lemon Ginger Turmeric, Cranberry Orange, Maple Apple, and Spiced Fig. Available in a 332 mL pourable glass bottle with a transparent label that highlights a simple ingredients list, Litehouse Apple Cider Vinaigrettes are dairy-free, vegetarian, and certified gluten-free. They have an SRP of $4.99-$5.99.
Pourable Vinaigrettes: Reformulated with Less Fat and Sugar, Only 25 Calories or Less
In response to growing demand for high-quality ingredients and exceptional taste, Litehouse is unveiling a refresh to its core line of Pourable Vinaigrettes, now made with less fat and sugar, but the same delicious taste consumers know and love. Available in an assortment of flavors including Balsamic, Sesame Ginger, Poppyseed, and Raspberry, the reformulated vinaigrettes are now only 25 calories or less per serving. Litehouse Pourable Vinaigrettes have an SRP of $3.99-$4.99.
Litehouse Organic Pourable dressings, Apple Cider Vinaigrettes and Pourable Vinaigrettes do not contain artificial preservatives, colors or flavors, and are made without high fructose corn syrup or added MSG. Litehouse dressings are available in the refrigerated produce department at grocery retailers in the U.S. and Canada.
Consumer Convenience: Snack Packs and Freeze Dried Herbs
As consumers continue seeking convenient, portion-sized snacks, Litehouse is bringing its classically-delicious, top-selling Homestyle Ranch Snack Packs to Canada. The single-serve, 43 g snack-size cup is conveniently portioned for on-the-go snacking or as an easy lunch pairing. Available in a six-pack of 43g cups with an SRP of $3.99-$4.49, Litehouse Homestyle Ranch Snack Packs can be found in the refrigerated produce department.
In addition to the new dressings, Litehouse unveiled a brighter, bolder look for its Canadian line of Freeze Dried Herbs, leveraging design cues from the recently refreshed core line of Litehouse dressings and dips. The new Litehouse Freeze Dried Herbs packaging features helpful usage tips and mouthwatering photography and delivers the same quality flavour found in fresh herbs. Litehouse offers 13 varieties of Non-GMO Project Verified freeze dried herbs, which can be found in the produce department for an SRP of $3.99-$4.99.
For the latest in fresh produce news, keep reading us here at AndNowUKnow.
ROCHESTER, NY - If you have had the good fortune to meet Mary Zink, Produce Category Merchant for Wegmans Food Markets, I dare you to try and guess how long she’s been in our industry. Having witnessed firsthand her ease in our business, I was surprised to learn she’s only been at it for a couple of years.
“I’ve been with Wegmans for 18 years now, and the past 2.5 years in produce. I started out on the veg side of the business and just recently moved over to fruit,” Mary shared with me.
When it came to spotlighting women of produce in our countdown to the Women’s Fresh Perspectives Conference (WFPC) later this month in San Antonio, Texas, Mary was a clear choice. If you factor in the culture at Wegmans, as she brought to my attention, this couldn’t be more fitting.
“Wegmans truly supports women in leadership positions as our President and CEO Colleen Wegman leads by example every day and inspires us all to help others, follow our hearts, and love what we do. Being able to support the WFPC allows for us to build relationships within the industry, network, but also strengthen our leadership styles. I know last year when I returned from Miami, I was fully engaged, energized, and inspired,” Mary recalled.
She tells me that efforts to empower the women in fresh produce is one among many reasons to love our business as a whole.
“There are so many reasons to love the produce industry! The people, the innovation and opportunities, the relationships, and being able to help our customers, families, and friends live healthier, better lives through great-tasting produce. More and more women are joining the industry and it’s great to be able to acknowledge their contributions. Spotlighting women in produce is empowering for all women, because it shows what can be done and provides how it can be done,” Mary said.
When I asked her about a challenge that comes to mind since joining Wegmans’ fresh produce side, Mary shared that, understandably, it was somewhat trying to come in without a background in produce.
“Thankfully, I have a great team, a team that has some pretty impressive backgrounds and experiences, that has always been there to help me along the way,” she said. “I think my proudest moment is being able to say I work for one of the top companies in America AND in the department for which they are most noteworthy. How cool is that?”
This resonates strongly with me; I get to share the stories of the amazing people in this industry. Indeed, how cool is that? Thank you to Mary and to all those that keep this business not just fresh, but fun. For more on who they are and what they do, keep checking in with AndNowUKnow.
PLEASANT PRAIRIE, WI - Good Foods is thrilled to bring on Jay Guzman as its new Key Account Manager to offer new vision and insight for the Good Foods team. In his new role, he will support the brand by building and maintaining strategic long-term partnerships with retailers in the western region of the U.S.
“I’m proud to be part of a team that values innovation and risk taking,” said Guzman, in a recent press release. “I look forward to diving right in with the Good Foods team to help elevate new ideas as we strive for higher levels of success!”
With more than ten years of experience in business development leadership roles, Guzman has positioned himself in the industry as a forward-thinking leader with excellent relational skills. Before being hired at his new role, he was the former Vice President of Business Development for the Fresh Produce and Floral Council (FPFC).
“We are delighted to have Jay join the Good Foods family and bring a new perspective to the team,” said Danyel O’Connor, Executive Vice President of Sales and Marketing at Good Foods. “His ability to maintain long-lasting relationships, in addition to his strategic thinking, makes him the ideal person for this role and we couldn’t be more excited to have him on our team.”
Guzman’s new position will also include working closely with the marketing team to collaborate and promote new product launches, as well as supporting the brand’s business development and trade relationships. He will be developing and presenting key consumer data and preferences to buyers and will support the brand at trade shows and events.
Congratulations to Jay Guzman from the AndNowUKnow team!