SONORA, MEXICO - In business as in running away from a horror movie killer, sticking together is often the best policy. Molina Group has taken this to heart and has recently announced the merger of its two U.S. sales and distribution companies. The two companies, Visalia Produce of Kingsburg, CA, and Fresh Farms of Rio Rico, AZ, will be grouped into one sales and distribution company called Fresh Farms, with an anticipated start date of late March of this year.
Molina Group is making the move to take full advantage of both companies’ sales staff’s strengths and abilities, and both offices will retain the same staff. There will be more sales fire power for both offices by merging the offices into one company, as well as a wider distribution of products, since both offices’ sales staff will be sharing inventories.
According to the press release, parent company Molina Group has grown into one of the largest farming families in Mexico, and have expanded farming operations into California. Molina Group grows a wide range of produce including Mexican and California table grapes, bell peppers, soft and hard squash, eggplant, English and American cucumbers, corn, watermelon, round beans, pickles, in-season citrus, and specialties like quince and persimmons—most of these products are also available from organic farms. The consolidation places the companies’ products that they market in a better position for distribution throughout North America and beyond.
Will this merger bear fruit? And will my puns make people groan? Keep reading AndNowUKnow to find out.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) announced that Utopia Produce Inc. satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA).
According to a press release, the Glendale, NY, company has met its obligations and is now free to operate in the produce industry. Li Zhi Wang was listed as the officer, director, and major stockholder of the business and may now be employed by or affiliated with any PACA licensee.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to impose sanctions on a 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.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named responsibly connected individuals.
The PACA Division, which is part of USDA’s 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. Our 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.
CINCINNATI, OH - Is Kroger pivoting away from certain goods in favor of doubling down on other divisions, like produce? After finally selling its Turkey Hill business—which offers a full line of fruit drinks, iced teas, milk, frozen dairy treats, and ice cream— after months on the market, the answer could be yes.
This week, the grocer announced that Peak Rock Capital, an Austin, Texas-based private equity firm, has agreed to purchase Turkey Hill for an undisclosed amount of money. Kroger first put this business on the market in August 2018.
“We believe this is the right step to ensure the Turkey Hill business can meet its full potential and continue to grow its successful ice cream and beverage brands," said Erin Sharp, Group Vice President for Kroger Manufacturing. "Throughout this process, we were extremely impressed with Peak Rock's professionalism and vision for the future of the Turkey Hill business. We look forward to working with them to ensure a smooth and successful transition for all parties."
According to a press release, as part of the sale agreement, the Peak Rock Capital affiliate will continue to operate the Turkey Hill business out of its Conestoga, Pennsylvania, facility and offer products under the Turkey Hill brand. In addition, Peak Rock Capital will move forward with Turkey Hill's 800 full-time, part-time, and seasonal associates.
"We believe that Turkey Hill represents an excellent platform for growth through near-term organic initiatives and strategic acquisitions,” Anthony DiSimone, Chief Executive Officer of Peak Rock Capital, said. “We will be aggressively pursuing complimentary acquisitions to extend the product and brand portfolio."
Robert Pistilli, Peak Rock Capital’s Managing Director, added, "Turkey Hill represents an exciting opportunity to invest in a premier brand with an established reputation for quality, flavor variety, and authenticity, within the large and growing ice cream and refrigerated drinks space. We are impressed with the accomplishments of the business under the stewardship of Kroger and look forward to completing a seamless transition of the business to a standalone entity and partnering with Turkey Hill's management team to drive significant growth through continued product innovation."
The transaction is expected to close during Kroger’s first quarter.
As we wait to see what this move on Kroger’s part means for produce, AndNowUKnow will continue to bring you the latest fruit and veg coverage.
DELANO, CA - In a recent announcement, Kern County grape grower Vincent B. Zaninovich & Sons Inc. (VBZ) confirmed that the company has made decisions to close a large share of its business after negotiating with The Wonderful Company to sell land in the Delano area, as reported by Bakersfield Californian.
"VBZ has been my family's pride and joy for more than 80 years, but this restructuring is important to our future," VBZ President John Zaninovich reportedly confirmed.
The Wonderful Company commented in a statement: "We are in the process of purchasing a portion of the farmland owned by VBZ." The company could provide no additional information.
Last year saw a record table grape harvest as well as a shortage of skilled field labor, driving down grape prices. In light of the price drop, VBZ had announced layoffs of around 511 employees, including 379 field workers, starting on or after May 4 in unincorporated land in Kern and Tulare counties near Delano, with no explanation or comment. Now, as a result of the downsizing, the company announced it would soon be cutting up to 542 jobs in Kern and Tulare counties, reported Bakersfield Californian.
According to Bakersfield Californian, there was no direct connection between downsizing and The Wonderful Company’s purchase of "an undisclosed share of around 6,000 acres that VBZ owns near Delano."
Additionally, VBZ Payroll Service Inc., a company related to VBZ announced it would be cutting 31 positions, including personnel in positions from controller to director of food safety, as well as three produce salespeople.
For updates on this story, keep reading AndNowUKnow.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) announced that Moceri Food & Beverage Inc. satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA).
According to a USDA press release, the San Diego, California, company can operate in the produce industry upon applying for and being issued a PACA license. Salvatore Moceri and Grace Moceri were listed as the officers, directors, and major stockholders of the business and may now be employed by or affiliated with any PACA licensee.
As we previously reported, the company had failed to pay a $23,092 award in favor of a California seller.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to impose sanctions on a 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.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named, responsibly connected individuals. USDA also requires any unlicensed company that fully satisfies all unpaid reparation awards to obtain a license if it continues to operate in the industry.
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 includes 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. Our experts 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.
GONZALES, CA - Misionero, a company that helped lay the groundwork in the organic leafy greens category, has hired a new Chief Financial Officer (CFO) Jeff Cook, who has more than three decades of industry experience and an extensive background in financial management, sales forecasting, and risk management.
“I’m honored to join the incredibly talented team at Misionero,” expressed Cook. “I can’t wait to jump into the business and I look forward to helping the company grow into its next chapter.”
A veteran executive with CFO experience at Mann Packing by Del Monte and Earthbound Farm, as well as a stint serving as Vice President of Finance for Fresh Express, Cook is excited to get started with new ideas. His proven track record in streamlining financial processes, creating valuable sales forecasting systems, and implementing company initiatives will bring a solid strategy to Misionero’s logistics and sales departments as stated in the company’s press release.
“We are thrilled to have someone of Jeff’s caliber join our team,” said President Joe Merenda. “His deep understanding of the fresh produce industry, alongside his exceptional leadership, and vast sales and financial knowledge, will be an invaluable asset to our team.”
Cook graduated from Sacramento State University with a concentration in Accounting and a minor in Economics. Merenda also noted that he is confident in Cook’s ability to bolster the company's financial and reporting systems and bring even more strategic thinking to its team.
“As Misionero continues to grow,” added Merenda, “all of our teams, from sales to operations, will benefit from clearer expectations and a metric driven analysis to foster elevated performance.”
To learn more about Misionero’s innovative practices, keep reading AndNowUKnow.
BURLINGTON, MA - The land of the Sox is gearing up for the New England Organic Produce Conference on May 1st at the Gillette Stadium. Conference organizers, the New England Produce Council (NEPC) and Organic Produce Network (OPN), have announced the retailer participants for the roundtable session at the upcoming conference. The highly experienced participants include Brian Fleming (Stop & Shop Supermarket, Kevin Barry (Big Y Foods), and Mark Jewell (Hannaford Bros. Supermarket).
“We are very excited these produce professionals are taking time out of their busy schedules to share their expertise,” said Laura Sullivan, NEPC Executive Director, in a press release. “Matt Seeley (OPN) and Mark DeMichaelis (Olivia’s Organics/State Garden) will co-moderate this session. A special thank you to Olivia’s Organics for sponsoring the retailer roundtable.”
Roaming the hallowed halls of Gillette Stadium will be buyers from a range of retail companies, including Big Y Foods; Bozzuto’s, Inc.; BJ’s Wholesale; C&S Wholesale Grocers, Inc.; Boston Organics; Crosby’s Markets Inc.; Hannaford Supermarket; Donelan’s Supermarket; Roche Bros.; Market Basket; Shaw’s Supermarkets, Inc.; RI Organics; Whole Foods; and Stop & Shop. Even more retailers are expected to join the list of attendees in the quickly dwindling time before the conference.
The conference will feature no exhibitor booths, save for the product displays offered to event sponsors, but will include dynamic speakers and enriching educational sessions.
“Hannaford is looking forward to the New England Organic Produce Conference in Foxborough this spring,” said Mark Jewell, Category Manager of Produce and Floral, Hannaford Bros. Supermarkets. “Great set up where we can gain some education, trends, and ideas around the growing segment of organics. Strong lineup of speakers and presenters that will make this a must attend event. Hannaford has already committed to send their Produce Director, CM’s, few buyers, and looking to extend to its local Produce Managers.”
Registration is currently underway at the conference website.
Keep reading AndNowUKnow for more news about upcoming conferences and shows.
NEW YORK CITY, NY - New York law firm Cravath Swaine & Moore has been accused in a shareholder lawsuit of "improperly steering" the $1.6 billion leveraged buyout of The Fresh Market, as first reported by The Financial Times. The sale was to Apollo Global Management and the company’s CEO, Ray Berry, who together won the bidding. However, foul play seems to have been involved, as the suit alleges that the law firm created the appearance of a fair sale to ensure that the sale would go to Apollo.
The suit was filed late last week by shareholders in the Delaware Court of Chancery, in which they accused Cravath of “lend[ing] a patina of integrity to a sham auction.” Cravath’s client was the Board of Directors for The Fresh Market. The Board has been sued by the retailer's shareholders for breaching its fiduciary duties in approving the deal with Apollo. That lawsuit, previously dismissed by the lower Delaware court and then reversed by the Delaware Supreme Court, led to the trial that is making news headlines this week.
Since then, additional documents and emails were discovered, which led to the allegations filed against Cravath and JPMorgan, The Fresh Market’s investment banker. Within those emails, Cravath was allegedly paid a $5.5 million fixed fee for its work on the transaction. Both are accused of “aiding and abetting” the Board’s alleged breach of duty.
In a Reuters report, more misconduct was brought to light, particularly regarding the relationship between the Berrys and Apollo. Apollo first reached out to The Fresh Market in 2015, during which the private equity fund worked with both Ray and Brett Berry on a side deal. In this side deal, Berrys would roll over the family’s 9.8 percent stake if Apollo bought out the company. If the rollover occurred, Apollo would have to expend less capital to take The Fresh Market private. For the Berrys, an estimated upside from the takeover could result in as much as $930 million.
According to the complaint, JPMorgan “knowingly participated with Ray Berry in helping him and Apollo acquire the company at an unfair price, for example by tipping Apollo as to the lack of competition such that Apollo could lower its offer below the price it was previously willing to pay.” The complaint also argues that JPMorgan helped manipulate The Fresh Market’s financial projections to make the final deal price more lucrative.
“We believe the claims against Apollo have no merit, and we intend to defend the case vigorously,” an Apollo spokesperson said in a statement.
Cravath, The Fresh Market, and JPMorgan have declined to comment.
AndNowUKnow will continue to report on the latest in grocery.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has cited Penny Tsigaris, doing business as Manavi Produce (Tsigaris dba Manavi), Oceanside, New York, for failing to pay for produce.
According to a USDA press release, the company failed to pay $385,021 to three sellers for produce that was purchased, received, and accepted in interstate and foreign commerce from February 2015 to January 2016. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, Tsigaris dba Manavi cannot operate in the produce industry until September 24, 2020, and then only after they apply for and are issued a new PACA license by USDA.
The company’s principal, Penny Tsigaris, may not be employed by or affiliated with any PACA licensee until September 24, 2019, and then only with the posting of a USDA approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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.
MONTEREY, CA - The Organic Produce Summit (OPS) 2019 is a two-day event respectively arranged to bring together organic fresh produce growers, shippers, and processors with retailer and buying organizations from across North America. Over 1,400 attendees will meet July 10-11 in Monterey, CA, to exchange ideas, information, and insight of the organic fresh produce industry. This week, the summit announced its latest education session, “Tackling Food Waste—Good for the Planet and the Bottom Line."
“Food waste is a topic that continues to gain the attention of stakeholders throughout the supply chain as well as being on the minds of consumers,” Jan DeLyser, Vice President of Marketing for the California Avocado Commission. “The panelists represent diverse areas of expertise on the subject who will address the issues related to managing food waste and provide OPS attendees an opportunity to engage in the conversation with insight into their experiences.”
According to OPS’s press release, global food loss and waste is estimated to be “between one-third and one-half of all food produced.” Its impact on the environment and a company’s bottom line will be the subject of the third of six educational sessions at OPS 2019.
The educational session will provide an overview of how food waste is impacting the planet and some of the steps and measures being taken throughout the supply chain to reduce food loss and waste and will be moderated by Jan DeLyser.
Panelists for the session include:
- Lisa Spicka, Associate Director for the Sustainable Food Trade Association
- Carlos Rojas, VP Legal Risk and Sustainability, Sprouts Markets
- Ed O’Malley, VP of Supply, Imperfect Produce
The event is one of six educational sessions focused exclusively on the multi-billion-dollar organic fresh produce industry, as stated in the event’s press release. Further, two keynote presentations featuring organic consumer activist Robyn O’Brien and award-winning chef and author Dan Barber, as well as a Retailer Roundtable including three of the nation’s largest and most progressive retailers, highlight the fourth annual OPS.
Other educational sessions at OPS 2019 will include:
- Organic Sales Analysis and the Organic Consumer
- What Lies Ahead for Wholesalers of Organic Produce?
- The Future of Organic Meals at Retail
- International Insights and Trends on Organic Produce
- International Organic Produce Supply
OPS 2019 will also include a selection of field tours for retailers and buyers, a gala opening night reception, and a trade show featuring 148 producers and processors of organic fresh produce from across North America and the world.
For more updates of OPS 2019, keep reading AndNowUKnow.