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WASHINGTON, DC - ANUK has been following the tariff situation for many months, and we’re happy to report that an accord seems imminent. Last Wednesday, February 27, U.S. Trade Representative Robert Lighthizer stated that the United States was—for now—abandoning its threat to raise tariffs to 25% on $200 billion worth of Chinese goods.
Last Sunday, February 24, President Trump announced that the higher tariffs would be delayed; he did not, however, give a time frame for the delay.
“In accordance with the president’s direction, the Office of the United States Trade Representative (USTR) will publish a notice in the Federal Register this week to suspend the scheduled tariff increase until further notice,” USTR said in an emailed statement.
Beyond the 10% tariffs that are now in place, USTR currently has no plans to hike up tariffs. According to a report from The Wall Street Journal, the statement was issued after Robert Lighthizer’s testimony to the U.S. House Ways and Means Committee. During this tesimony, Lighthizer stated that the United States and China had reached a “tentative agreement” on a mechanism that would enforce the trade deal—an issue that has consistently been a stumbling block in talks.
With the threat of higher tariffs seemingly abating, will the trade war between two of the largest global economies be closer to an end? AndNowUKnow will continue to report the latest.
SEATTLE, WA - One of the preeminent promoters of e-tail continues to expand aggressively into brick-and-mortar grocery; according to the Wall Street Journal, Amazon has a new U.S. chain in the works, and the first outlet could make its debut as soon as this year.
According to the WSJ’s sources, this new grocery operation would be entirely separate from the Whole Foods Market brand acquired just over a year ago.
One Amazon insider told the news source that the first grocery store is planned for Los Angeles at the end of this year, with leases already signed for at least two other grocery locations to open early in 2020. Sources shared with WSJ that rather than competing with its Whole Foods banner, the new stores will offer products at a lower price point, with a different variety of products than what is on the shelves at the more upscale Whole Foods Markets.
It’s unknown whether Amazon plans to acquire another grocer or launch its own grocery operation from scratch. And sources weren’t forthcoming about whether Amazon will attach its own name to the chain or offer a new banner entirely.
The report did note that Amazon is now in talks to open grocery stores in shopping centers in a number of large metros like:
- San Francisco, CA
- Seattle, WA
- Chicago, IL
- Washington, DC
- Philadelphia, PA
The (r)e-tailer is also exploring an acquisition strategy to widen the new supermarket brand by purchasing regional grocery chains with about a dozen stores under operation, one person told WSJ, and noted that though leases have already been signed, that doesn’t guarantee it will open the grocery stores.
Amazon has reportedly been targeting new developments and occupied stores with leases ending soon, with insiders explaining to WSJ that the company has asked for more flexibility in lease negotiations as it doesn’t want restrictions on the type of goods it may sell.
AndNowUKnow will continue to report with updates as they occur.
SACRAMENTO, CA – Boy, do I have a CRUNCH on the produce industry! This round of our Find the Apple Logo contest brought some of the cutest smiling faces I’ve ever seen to ANUK’s inbox in true Valentine-gram style. While a fair share of competition bent time and space to land those coveted top spots, this round goes to a Snack cover contest vet and a first-timer!
On the supply-side, Paytynn Thomas, Procurement Analyst for Fresh Concepts, took the cake for the fastest time and, in the process, nabbed the $100 cash prize.
Upon learning of her win, Paytynn exclaimed, "FRESH CONCEPTS LOVES THE SNACK!"
Former champ Kimberly Chan, Associate Buyer – Produce & Floral for 99 Cents Only, returned to her rightful place as our buy-side winner, receiving the honor of starting the new week off $100 richer.
"Thank you ANUK and The Snack! I always look forward to your magazine," Kimberly shard with me. "I love your content, and every month it keeps getting more interesting and informative."
If you didn’t win this time, no biggie! This isn’t the last you’ll see the Find the Apple contest. Be sure to subscribe to The Snack Magazine here (subscription is valued at $129 per year), and keep an eye out for future contest announcements on ANUK.
February 2019 Snack Magazine-Volume 38
Remember that contest rules require that submissions include a person pointing out the logo on the cover of The Snack Magazine, and the countdown only begins once we announce the contest in AndNowUKnow’s newsletter.
Congratulations to our February winners! We’ll be back in April with Volume 39 and would be over the moon if all of you could once again grace our inboxes with your lovely smiles and flexed fingers. So be on the lookout and we’ll see you soon!
DOWNERS GROVE, IL - Consumer perception and satisfaction help the wheels go round, and it’s that philosophy Fresh Thyme says has helped it see double-digit dollar growth and the opportunity to expand across the Midwest despite a challenging retail market in 2018.
“We put our shoppers first. We strive to connect with our shoppers in meaningful ways and be their go-to resource to jumpstart or help them continue their health journeys. It’s that philosophy that has allowed us to post strong growth in both store count and sales this year. We will continue to hire local residents, support local causes, and find new ways to connect with our community,” said Chris Sherrell, President and CEO. “We’re also very quick to address our customers’ needs and determine how to best serve them. In the last 12 months, we’ve successfully launched ten new stores, introduced online ordering and home delivery across all 75 of our stores, and expanded our private label offerings by 33 percent—all by being local in the way we manage and promote our shopping experience."
According to SPINS data covering the last 52 weeks ending December 2, 2018, the company saw a dollar growth of 19.8 percent over the period, which the company said in a press release outpaced almost all other retailers in the natural space, despite an unpredictable and retail environment.
Within that environment, Fresh Thyme reflected on its having opened new stores in Minnesota, Ohio, Missouri, Indiana, and Pittsburgh last year, bringing its Midwest store-count to 75. Looking ahead to 2019, the team said that expansion continues to be a priority with four new openings already scheduled.
The company said it will look to stock even more hyper-local products on shelves and provide technology that makes shopping at its stores a more seamless, convenient experience.
For example, 2018 saw Fresh Thyme launch its partnership with Instacart, allowing its shoppers to order online and have healthy groceries delivered directly to their homes. This level of convenience, the retailer said, is all part of the grocery chain's dedication to making fresh, organic food readily available.
In early January, Fresh Thyme also debuted a new website with a new look and content to inspire consumers. Other areas of growth the retailer recently implemented or expanded upon, and will continue to grow, include:
- Its private label offerings
- Its commitment to the community
- Strengthened in-store programming
To read all about these exciting changes in detail, find the full report here. As for the team at AndNowUKnow, you can be sure that we’ll continue to be on the lookout for the latest news in our industry to bring to you.
WENATCHEE, WA - It’s that time of year again, produce lovers! Everyone is packing their bags in anticipation for the flight down to Florida to attend Southeast Produce Council’s (SEPC) Southern Exposure. Here to hype us up even further is CMI Orchard’s George Harter, Vice President of Marketing, and Danelle Huber, Marketing Specialist, who let me in on what the company’s plans are for the show.
“We are really exited to showcase our Flavor of the World™ promotion, which allows retailers to highlight some of the tastiest apples discovered from orchards all around the world, grown both conventional and organically,” George shares. “We will also be showing our American Dream™ promotion, a promotion that is close to our hearts and allows retailers to give back to veterans and military families in their own communities.”
In addition to these two programs, Danelle explains to me that CMI wants to highlight its 4th tier method of selling in the apple category.
“As the average retail price of branded and organic apples stays strong—or in some cases continues to rise—the additional designation of ‘branded organics’ can increase category sales even more,” she tells me. “Most retailers carry first, second, and third tier items, which are the conventional core varieties, organic core varieties, and conventional branded apples. The retailers that are benefitting from large profits in their apple category recognize the value in adding a fourth tier of selling to drive interest and excitement by offering an additional price point.”
These fourth tier items are none other than CMI’s branded apples: KIKU®, Kanzi®, Ambrosia Gold™, and Envy®, all of which will be on display at Southern Exposure and readily available for samples.
“CMI is extremely focused on being our customers’ ‘one stop shop’ and proving assistance in all areas of our business relationship,” George adds when I ask him to elaborate on his intentions going into the show. “On top of growing quality pears and cherries, CMI offers seven of the top fifteen branded apples in sales dollars—according to Nielsen data—five of which we currently offer in our Daisy Girl Organics™ label, as well as all of the quality core varieties in both conventional and organic.”
Given the quality of Southern Exposure, its retailer attendance, and the networking opportunities available, Danelle impresses upon me that this show is especially valuable to CMI Orchards.
Be sure to pop on over and say hello to the team at booth #301! And for the latest in SEPC coverage, keep following us here at AndNowUKnow.
HOUSTON, TX - While fresh produce is meant to be enjoyed by everyone, we know that this tends to be a goal rather than a reality. But with Brighter Bites' boots-on-the-ground approach, this goal could just be achieved, and soon at that. With partners like Sysco/Freshpoint, Mann Packing, Taylor Farms, Southern Specialties, Church Brothers Farms, The Coastal Companies Foundation, Lipman Family Farms, D'Arrigo New York, Brothers Produce, PMA, Walmart, Target, and H-E-B, Brighter Bites is building produce-centric communities and assembling the next generation of fruit and veg enthusiasts.
At the helm of this ginormous feat is Lisa Helfman, Founder of Brighter Bites and self-monikered the produce industry’s best friend—all I’m saying is that if you know Lisa, you know there’s no one who fits this role more. I had the opportunity to sit down and chat with the produce industry’s bff to learn more about the company that is turning a grandiose idea into the foundation of America’s grocery shopping and eating culture.
“Brighter Bites is unique in that we go the extra mile to get fresh produce into homes. We’re not just a children’s program because we’re influencing the decision-maker, the adult and parent, to get food to their families and help healthy behaviors become normal,” Lisa shared with me. “We’re also not just delivering products but creating co-ops in our schools that act as touch points. We’re not just handing out produce and we’re not just educating people—we are creating communities that eat fresh food.”
As part of its programs in Houston, Dallas, Austin, New York, Washington D.C., Florida, and soon an undisclosed West Coast location (stay tuned!), Brighter Bites requires parents to volunteer and participate in the co-ops. This requirement has brought an unforeseen wave of parent volunteers to schools where this has not been the norm. And as more families get in on the action, communities across the country are coming together to live a healthier lifestyle and support each other on that journey.
“Brighter Bites is introducing excitement and passion centered around produce, which is creating a better environment for people. As a result, things are happening that are bigger than the mission. The communities we align ourselves with feel cared for and empowered to live healthier lives,” Lisa said.
In addition, Brighter Bites sends kids home with 20-25 pounds of fresh produce per week, which includes 8 to 10 different varieties. But rather than leave the kids and their families to it, Brighter Bites takes the time to educate communities on the benefits and uses of fresh produce via in-class curriculum and information and recipes included in each student's produce bags. This has helped over 20 million pounds of produce reach and be incorporated into the lives of 265,000 individuals (including teachers) across more than 240 schools and summer camps since 2012. This year alone, Brighter Bites is working with nearly 25,000 families across the country, which Lisa noted wouldn’t be possible without its produce partners.
“We are dependent on produce donations. The more produce we get donated, the more families and communities we can reach. We are so grateful to the organizations we’re already working with and are always on the lookout for new growers to partner with,” Lisa concluded.
If you’re a numbers person, check out Brighter Bites’ website for some hard-hitting data showcasing the truth behind the company’s efforts.
And, if you’re looking to see Lisa in action, she and the Brighter Bites team are headed to SXSW in Austin, Texas, to reach new audiences and change the conversation around fresh produce.
I’ll be the first to say it: Lisa Helfman for President 2020! It’s time to put produce back in the U. S. of A!
For more company profiles on those going great lengths to bring produce to the masses, stick with us at AndNowUKnow.
NEWARK, DE - It’s change time for the Produce Marketing Association and Center for Growing Talent, as the organization has recently named Doug Bohr as its next Executive Director. Longtime leader Margi Prueitt will be retiring after nine years at the helm, making way for Bohr to join the organization on March 20. Bohr’s role will be to oversee leadership for CGT, help advance its fundraising efforts, and continue to work to provide solutions to attract, develop, and retain the talent essential to the growth of the produce and floral communities.
“The mission of CGT is hugely important to the future of our industry,” said Marty Craner, CGT Board Chair. “For those of us on the search committee, it was critical that the new Executive Director would be able to continue the work establishing CGT as the source of solutions and initiatives to attract and retain the best talent in our industry. We have definitely found that with Doug.”
Bohr brings with him extensive experience in public programming in the nonprofit sector, serving most recently as Vice President of the Philadelphia Zoo—a position he held since 2017. His role as Vice President included overseeing the strategic planning, development, and implementation of new initiatives. Bohr also initiated a planning and evaluation unit aimed at improving the organization’s collection and use of data to measure impact and improve business intelligence. Before the Philadelphia Zoo, Bohr spent 12 years at the Pew Charitable Trusts where one of his successes was a three-part research study on the creation of a talent attraction and retention strategy for the city of Philadelphia. Margi Prueitt commented that Bohr’s wealth of experience in fundraising, program design, and public engagement will be crucial for his new role.
“CGT is able to offer invaluable programs and initiatives for the produce and floral industry because of the great support of our board, volunteers, and our contributors,” said Prueitt in a press release. “I’m thrilled someone of Doug’s caliber and background will be taking the reins to continue to grow CGT’s impact.”
CGT’s portfolio serves individuals at all levels of their professional journey within the produce and floral industy. As business needs change based on factors like consumer demand and technological disruption, so does the need for high quality talent. It is essential to attract new talent, especially from the new batch of young people entering the workforce—something Bohr is eager to do.
“This sector is poised for growth, particularly as issues of lifestyle, health, and sustainability are increasingly front-of-mind for today’s consumers and likely will be for generations to come,” Bohr said. “What will drive this growth is talent. Thanks to Margi’s leadership, CGT, working in close partnership with PMA, is well positioned to support the industry’s efforts to attract, develop, and retain talent with the diverse skills necessary to meet the challenges and opportunities of a rapidly changing world. Our ability to do so going forward will enrich the sector and benefit individual businesses across the supply chain. I look forward to leading CGT into this next chapter and working with our partners to tell the story of this industry as one of growth and opportunity.”
For more updates on corporate management musical chairs, keep reading AndNowUKnow.
WINDSOR, ONTARIO - LABELPAC is heading into March with renewed gusto, announcing an international expansion plan, a new partnership with Australia-based Label Press, and a revamped strategy to develop trust and relationships with growers around the world via its MOTOHEAD™ labeling system product.
LABELPAC offers its partners and customers 30 years of produce labeling experience. This experience coupled with its MOTOHEAD Print and Apply on-demand PLU labeling systems differentiates the company, which is one reason Label Press chose LABELPAC as its new strategic partner.
“At LABELPAC, we are always seeking strategic partners that place customer values first and offer local support and service. With nearly 40 years, Label Press has proven their reputation working with packing houses in Australia to provide labeling solutions while building long-lasting relationships,” said Sam Sleiman, President and Owner of LABELPAC. “We look forward to working with and supporting Label Press, which will bring positive changes and options to the Australian and New Zealand markets. Our systems are offered in a multitude of configurations to accommodate [customers’] labeling requirements.”
According to a press release, MOTOHEAD is the only labeler of its kind thanks to its ability to print on both high-quality, thin eco-friendly biodegradable glossy paper and polyethylene labels. In addition, the product touts the advantage of tracing back to the root of contamination via LABELPAC’s enhanced Item Level Traceability. It also helps customers save on label inventory because of the labeling system’s use of a multitude of generic PLU labels without the need to stock large label inventory.
“Since 1980, Label Press has provided quality printed labels and tags as well as innovative packing house solutions to the Australasian fresh produce industry. Along with LABELPAC’s expertise in fruit labeling technology and their internationally patent-pending and innovative Produce Lookup (PLU) labeling systems, Label Press can now offer unique options to PLU labeling requirements for the Australasian and New Zealand market,” said Cecil Hornbuckle, Director of Label Press. “Label Press has identified the MOTOHEAD system as proven technology that will facilitate smoother operations for Australasian growers and packing houses.”
On top of this new partnership, LABELPAC also has its eyes on expanding internationally.
“Recently, we added Peru, Germany, Australia/New Zealand, and Chile to the international team of distributors and label manufacturers,” continued Sleiman.
To stay apprised of powerhouse produce team-ups as they occur, keep checking back with AndNowUKnow.
WASHINGTON, D.C. - Another hurdle has been placed in the way of President Donald Trump’s proposed border wall plan. The House of Representatives voted to pass legislation to cancel President Trump’s declaration of an emergency at the U.S.-Mexico border that would allow his administration to build a wall there.
The House passed this resolution by a vote of 245-182, according to Reuters, with all but 13 of the in-favor votes belonging to Democratic representatives. Next, a vote on the resolution will go to the Republican-controlled Senate. Though, regardless of the Senate’s vote, both chambers of Congress would need to rally a two-thirds majority ruling to override what seems to be an inevitable veto of the resolution by President Trump.
Representatives that supported the resolution, including Democratic House Speaker Nancy Pelosi, argue that President Trump’s unilateral declaration of an emergency at the U.S.-Mexico border circumvents the powers given to Congress by the U.S. Constitution to allocate government funding. They believe this would set a dangerous precedent for future lawmakers.
President Trump, on the other hand, has pointed out that he believes he has the power to declare this emergency as a way to direct existing money for building a border wall because Congress has refused to fully fund the project thus far.
“The current situation at the southern border presents a humanitarian and security crisis that threatens core national security interests and constitutes a national emergency,” a White House-issued statement said.
Again, the resolution will make its next stop for a vote at the Senate, but garnering support for the two-thirds majority required for Congress to override President Trump’s likely veto of the resolution is doubtful at this point in time.
AndNowUKnow is continuing to monitor the situation at the U.S.-Mexico border closely, so keep checking back in with us for the latest.