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.
CULIACAN COOL ALL WEEK
The production slowdown in Culiacan has begun. Sunday night and last night saw a minimum temperature of 48°. Tonight will be the coldest night of the week, with a minimum of 44°. The minimum temperatures are predicted to remain in the high 40°s through Monday, February 25th. Maximum temperatures this week will be in the high 70°s and low 80°s. Production will be affected. Please take precautions to not be caught off guard as supplies tighten.
FLORIDA CONTINUES ITS HEATWAVE
Look to Florida to replace volumes this week that will be lost in Culiacan. Florida is right in the middle of a heat wave, with all major growing regions experiencing temperatures 10 to 15° above normal. Belle Glade, Immokalee, Homestead, and Plant City are all experiencing maximum temperatures in the mid to upper 80°s and low temps in the mid to upper 60°s. These warmer than normal temperatures will last into the middle of next week at least.
This heat wave Florida is experiencing will probably bring the state's peach deal on a little earlier this year. We will do some more investigation about this and bring you a report on Friday.
FREEZING TEMPERATURES IN THE SAN JOAQUIN VALLEY MAJORITY OF WEEK
More freezing temperatures in the SJV this week. These freezing temperatures are expected to last all week. Look for issues to the citrus harvest and any vegetables that may be coming from these regions, such as asparagus and broccoli.
Another major issue that may come from these freezes is damage to the early flowering of almonds and peaches. As we move into the second half of February, there should be some early varieties already blossoming. We will do some more research on this over the next few days and will have more details for you on Friday. These freezing temperatures are expected to last through Friday night. There is also a chance of some rain on Wednesday up and down the SJV. The highest possibility of rain will come tomorrow with up to .5 inch.
ROUGH WINTER CONTINUES IN CENTRAL COAST OF CALIFORNIA
Oxnard and Santa Maria are experiencing a tough winter. Over the weekend, fields were still wet, preventing harvesters from getting in and picking strawberries. Now, this week, these two regions will experience cold temperatures at night, getting down into the mid to lower 30°s. The max temps will mostly be in the mid-50°s this week. This should keep production detained even more. These regions won’t see highs in the 60°s and minimums in the 40°s until this Sunday or Monday of next week at the earliest.
BAJA CALIFORNIA, MEXICO RAIN THIS WEEK
Ensenada Mexico will see rain on Wednesday and Thursday of this week, which will most likely affect strawberries coming from this region. The region will see up to 1 inch of rain over the next two days. It will also experience below average temperatures, with highs remaining in the mid 50°s and lows in the upper 30°s to low 40°s.
Thank you again for your support, and we will be back later this week with another update.
ROCHESTER, NY - Who doesn’t want to be associated with the best of the best? Wegmans has once again been included on the FORTUNE 100 Best Companies to Work For list. Since it began 22 years ago, Wegmans has been included every single year—and among the top ten companies for 16 of the 22! Talk about bragging rights.
This year, the retailer ranked #3, coming out on top of other retailers such as Publix and Nugget Market.
“There is nothing more important to us than being a great place to work for all,” stated President & CEO Colleen Wegman in a recent press release. “The values we share across our company, starting with caring and high standards, are the foundation, and our customers appreciate our people for demonstrating those values. We are so grateful to our employees and continue to make the commitment that Everyday You Get Our Best.”
According to Great Place to Work, this year’s list is based on survey feedback that represents more than 4.3 million employees, with respondents rating their workplace culture on 60-plus elements of the workplace, such as trust in managers, compensation, fairness, camaraderie, and workplace traits linked to innovation. The rankings account for experience of all employees, including women, people of color, LGBTQ individuals, older team members, and employees with disabilities.
“The 2019 100 Best are the leaders in creating the most innovative workplaces built on trust,” said Michael C. Bush, CEO of Great Place to Work. “Employees at these organizations feel values, respected, and heard, and are inspired to be their best selves because of the commitment these winning companies have made to creating a great workplace for all employees, no matter who they are or what they do for the company.”
To see the full list of the 2019 FORTUNE 100 Best Companies to Work For, click here.
Congratulations to Wegmans from all of us here at AndNowUKnow!
ISTANBUL, TURKEY - Authorities in Turkey uncovered roughly 80 kilograms of cocaine en route from Ecuador this week—disguised in containers of bananas. Approximately 176 pounds worth of the illicit substance was seized at the port of Istanbul.
According to a report by Hurrieyet Daily News, anti-drug teams seized the cache of cocaine from a container ship carrying bananas from South America. A source spoke to the news source on the condition of anonymity, due to restrictions against authorities talking to the media.
The illicit substance was uncovered in 70 packages spread throughout six containers. An investigation has reportedly been launched into the case—though no information has been forthcoming on arrests or the fate of the container ship and its cargo.
Transportation of cocaine and other illicit substances from South America to Europe is not an altogether uncommon phenomenon. The trial of Mexican drug lord Joaquín Guzmán recently revealed details about drugs smuggled in plastic bananas. And a recent report by The Guardian outlined ways in which an expansive cocaine ring brought as much as two tons of cocaine into Germany in shipments of bananas between April 2017 and September 2018.
AndNowUKnow will continue to report of illicit activities and criminals infiltrating the fresh produce industry.
CHILE - Blend ‘em up in a smoothie, sprinkle ‘em on breakfast yogurt, eat ‘em plain, or just chuck ‘em at your siblings (was I the only one who did that as a kid?)—blueberries have endless applications. Consumers love them for their versatility, health benefits, and taste, and that is clearer than ever due to the recent exceptional Chilean blueberry season. Both conventional and organic blueberries have seen an outstanding response in North America and across the globe. Fruits From Chile is currently in the heart of its main promotional period, and with Chilean blueberries available through March, consumers will be berry satisfied.
“The Chilean Blueberry Committee has increased its forecast for blueberry exports this season, and it expects total fresh exports to reach 110,000 tons, roughly the same as last season,” explained Karen Brux, Managing Director North America. “This is great news, especially since the Committee was originally anticipating a decrease in volume following last November’s hailstorms.”
Here are some facts and figures about this year's Chilean blueberry season:
- Chile exported 3,945 tons of blueberries in Week 6, global exports reached 98,427 tons for this season (up 3% from last season)
- Organic blueberries are at their peak with 11,785 tons exported globally (season to date), up 41% over last season
- 9,084 tons of fresh organic blueberries from Chile were shipped to the U.S. through Week 6 (77% of total organic volume)
- Organic blueberry imports are up 30% from last season
- Organic volume expected to be around 12-13% of the total fresh blueberry volume shipped to the U.S. (17% if looking at volume shipped through Week 6)
- Total volume shipped to the U.S. through Week 6 (including conventional and organic) is 52,955 tons
2018 saw enormous growth in the organic fresh produce category, with sales hitting $5.6 billion, Karen said. Organic blueberries made serious headway, with the category growing by $63.9 million. Still, Fruits From Chile has plans in mind when it comes to conventional and organic blueberry promotion.
“We have a long history of working with retailers across the country to promote Chilean blueberries, and we’re now extending that support to organic-specific promotions,” said Karen. “We’re committed to expanding the category, so it’s key that we work with retailers to drive sales of both conventional and organic blueberries.”
For more produce updates, keep reading AndNowUKnow.
SOUTHERN CALIFORNIA - John Savidan is taking on 2019 with a passionate drive and a fresh outlook having recently assumed the position of Gelson’s Markets new Senior Director of Produce and Floral.
Having officially stepped into the new role this past January, John joins me to share his insights and excitement as he continues to make Gelson’s his new home.
“Gelson’s is really a great company that truly lives up to it’s impeccable reputation of phenomenal quality and customer service. I love that Gelson’s is committed to their mission statement and what they were founded upon,” John shares. “The company isn’t trying to be something that they are not or trying to be like any other of its competitors. This type of structure starts at the top with our CEO Rob McDougal and Paul Kneeland, our Executive Director of Fresh.”
When it comes to forward-thinking, the company is very practical and really does a great job with strategic planning, empowerment, and execution. These business attributes make for a very strong detail oriented company, John adds. And he has seen quite a bit during his tenure in the industry.
“If I would say the one thing that has changed more than anything since I first started in this business, it would be how technology has made for such great efficiencies,” he says. “The fresh produce and floral business is just a fantastic business to be in. The relationships that have been made over the years with so many great people is what’s made it a great journey. I have truly been very blessed to be in a position where I can share so many of the things that I have learned over the years and give back to an industry that I love so much.”
John started out as a box boy bagging groceries at Ralphs where he then moved up the ranks to Produce Department Manager. After 15 years at Ralphs, he then moved to Bristol Farms where he held positions of Produce Manager, Produce Merchandiser, Buyer, and Produce Director.
The industry vet is a graduate of the Cerritos College Retail Management Program, Cornell Executive Leadership program and attended USC’s Marshall School of Business. He has a very strong passion for the wellbeing of the fresh produce and floral industry and an overwhelming aspiration for personal growth.
John has been married to his beautiful wife, Ana, for 14 years and resides in Redondo Beach, California.
John, congratulations on the recent move, and we are looking forward to all the great work you will do with Gelson’s Markets!
WASHINGTON, DC - The United Fresh Produce Association has announced that registration for the United Fresh 2019 Convention & Expo is officially open. This year, a Convention Committee of over 40 industry leaders are switching things up, revamping the show, and touting the expo as one that will change the way attendees and exhibitors do business—so mosey on over to registration to be sure your name is on the list!
“We’re excited to gather with our attendee and exhibitor communities this June to experience the energy of United Fresh 2019 in Chicago,” said United Fresh President and CEO Tom Stenzel. “The infusion of excitement this year throughout our education, networking, and expo activities allow industry decision-makers to discover a total store solution driven in a dynamic environment. By bringing industry partners together through new programs like the Partner X-Change, we are helping the fresh produce industry grow in consumer impact, direct sales, and consumption, and of course, profitability.”
This year, the show takes place on June 10-12, in the North Hall of McCormick Place in Chicago. The event kicks off at noon on Monday with a Produce Outlook General Session, in which industry leading CEOs will offer their predictions for the future of our industry. The session will then be followed by an afternoon of workshops on buzzy topics relating to job function and business type and the big Opening Party, which this year is held at Chicago’s Crystal Gardens at Navy Pier.
“This year’s enhancements have been strategically positioned to ensure all attendees see added value in their participation at United Fresh,” said Greg Corrigan, Senior Director of Produce & Floral at Raley’s Family of Fine Stores and United Fresh Convention Committee Chairman. “I’m most looking forward to the opportunity to build new relationships through the Partner X-Change program, and to then further develop those relationships on the show floor.”
According to a press release, a few of the new networking activities that will be featured at United Fresh 2019 include:
- The Partner X-Change, a B2B matchmaking program where buying and selling communities will come together throughout the afternoon for meetings, engaging new retail and foodservice operators to present new products, pitch new programs and develop new relationships
- VIP attendees will depart McCormick Place following the new Partner X-Change, to travel to the United Fresh Opening Party on a VIP Cruise on Lake Michigan
- Tuesday evening, the inaugural United Fresh Late Night at House of Blues is where attendees will gather to celebrate the first day of the expo with an evening of entertainment and energy in downtown Chicago
This year, attendees can also return to the Listeria Learning Lab—a hands-on educational workshop connecting industry peers with the products and services that support their Listeria prevention efforts.
In addition, prior to each expo day, United Fresh is offering General Session Breakfasts, which will focus on setting the tone for the event before the show floor opens up for business. On Tuesday, attendees will have the opportunity to tip their hats to the graduating United Fresh Produce Industry Leadership Class 24 fellows. On Wednesday, attendees will then get the chance to toast this year’s Woman in Produce honoree, hear her story, and learn from a panel of past honorees at the Women in Produce Breakfast General Session.
The press release also noted that the following include a few trade show floor opportunities to look forward to:
- The United Fresh Expo which will continue to address the innovative solutions in the industry in response to the challenges faced throughout the supply chain. The expo will showcase the latest developments in technology, robotics, and other supply chain solutions and marketing and product development trends that have consumers adding fresh fruit and vegetables to their carts in grocery stores across the country
- SmartFood will return to United Fresh as part of the expo floor. This B2B event, focused entirely on better-for-you nutrition across all food and beverage categories, will allow fresh produce companies to find new collaborations and be exposed to more retail and foodservice buyers than even before
- Global Cold Chain Expo, now in its fourth year, provides tech solutions to ensure quality control throughout the cold chain from field to table. Attendees will experience and find innovation throughout the full supply chain, ensuring improved cold chain services and food safety and quality maintenance and accountability
- Enhanced educational opportunities will be taking place during the two days of the expo. In addition to the return of the X-Change Sessions, the facilitated discussions that gather like-minded professionals to a dialogue on industry topics, education enthusiasts will be delighted by an elevation of content to the new Main Stage and Stage Next
- The Main Stage will provide constant engagement and entertainment throughout the event. This destination will bring to life the passionate people, business and energies created in the fresh produce industry, as attendees will enjoy, learn and engage during the expo
- Stage Next is where innovation comes to life. This destination will spotlight new technologies, future-oriented topics, concepts and strategies that will advance the fresh produce industry
United Fresh 2019 will conclude on Wednesday afternoon with the Retail-Foodservice Celebration, which will transform the show floor into a closing celebration for the best-of-the-best. At the celebration, the top 25 produce and chefs will be honored for showcasing excellence in implementing fresh produce strategies on the front lines and in kitchens. The last hurrah will also give attendees the chance to get a sneak peek at United Fresh 2020, slated to be held in San Diego. For the first time, this event will be open to all registrants.
Registration includes the All Access Package, which provides attendees and exhibitors the ultimate show experience, allowing admittance to everything the show has to offer. Early bird rates for 2019 are available through May 10. Explore these details and register for the event at www.unitedfreshshow.org.
For more trade show updates as they occur, keep following AndNowUKnow.
NORTH AMERCIA - A week ago, the U.S. Department of Commerce announced that it plans to withdraw from the 2013 Tomato Suspension Agreement with Mexico, and this announcement stirred up many emotions across the industry. As we’ve previously reported, buyers and sellers must abide by the current terms of the agreement until May 7, and many have expressed either support or chagrin at the decision.
I spoke with Oscar Woltman, AMHPAC President, to hear another side of the story and what effects he foresees for the industry and the consumer.
“First, any compensatory duty will eventually fall onto the consumer, because producer, trader, and retailer cannot afford to reduce their prices and swallow the duty. If we don’t have an agreement before May 7, Mexican exporters will have to pay a 17 percent deposit prior to export. This will increase the sales price, and all new tomato contracts will include this surcharge in the final price,” he began. “Second, the industry always reorganizes once it encounters a new situation. Do not forget that if there is no agreement by May 7, we will fight for our rights at the International Trade Commission. We are sure we have complied with all the requirements we agreed upon in 2013 when we signed the last suspension agreement, so we can expect to win. Then there will be no suspension agreement or dumping. I do not believe that will favor the local producers.”
I asked Oscar what he would suggest people who support the deal do ahead of May 7—when the deal officially ends.
“I believe in a solution before May 7. I believe our proposals for better and clearer enforcement are very good and will be accepted once the counterparts really study them,” he explained to me. “We are looking for a clear, organized market where all involved have their share of the market based on product and quality. We ask all involved to review the proposals presented to the Department of Commerce. If there is no will to negotiate before May 7, we will await the International Trade Commission’s verdict the beginning of November.”
In the meantime, Oscar stated that, as a producer, you should prepare yourself in case the duty does start on May 8.
As the deadline looms closer, AndNowUKnow will continue to report the latest news.
SAN FRANCISCO, CA - As plant-based food trends continue and retail potato sales top $11 billion in 2018, Side Delights®, the popular potato brand is offering consumers healthy and convenient new menu options, supporting the growing Food as Medicine and plant-based food movement in an effort to combat or cut off chronic illness.
“Shoppers are looking for ways to integrate more plant-based foods into their diets as they become increasingly aware of the health benefits,” said Kathleen Triou, President and CEO of Fresh Solutions Network. “With our growing recipe database and partnerships with consumer-favorite food bloggers, the partners of Fresh Solutions Network, exclusive suppliers of Side Delights brand of fresh potatoes, [are] providing extra value to its retail customers by driving consumers in-store for plant-based food ingredients that are flavorful, easy-to-prepare, and on-trend.”
According to the company’s press release, Side Delights’ fresh potato lines are a naturally plant-based, healthy, and flavorful option. The brand’s value-added kits offer gourmet, convenient, and organic eating experience, as do its fresh-cut and bagged potatoes.
Side Delights noted that plant-based eating and Food as Medicine trends are making an impact at the store level, with a 20 percent growth increase in plant-based food at retail and plant-based foods dollar sales outpacing dollar sales of all retail foods as much as ten times over. The popularity of the potato, with its versatility and compatibility with other plant-based foods, is also growing, with total retail potato sales reaching a value of $11.6 billion in 2018, an increase of 2.1 percent over 2017.
And the company noted, while nutritionists and medical professionals have been embracing the concept for decades, the concept of Food as Medicine gained national attention last year as House lawmakers created a “Food is Medicine” working group, dedicated to improve health and reduce chronic disease. In December, the signing of the 2018 Farm Bill brought about provisions for healthier eating including the Supplemental Nutrition Assistance Program (SNAP), which included expansion of the fruit and vegetable subsidy program to $250 million, and a new $25 million Produce Prescription Program.
For more on Side Delights and other healthy and convenient offerings in fresh produce, keep reading Deli Market News.
MEXICO CITY, MEXICO - While transportation and e-commerce are eating up costs for stateside retailers, the market in Mexico is clear of such margin-squeezing expenses. As a result, one of Mexico’s largest retailers has solidified its lead in the growing market. Walmart de Mexico (Walmex) beat the street in its fourth quarter earnings thanks to efficiencies, cost reductions, and an improved supplier strategy, according to Reuters.
“Our buyers are doing great work and are negotiating in a more efficient way with our suppliers, which has allowed us to keep our leader position in price and improve profitability,” Walmex said in statement.
Walmex reported an 11 percent increase in net profits, a 22.5 percent growth in gross margins, a net profit of 11.8 billion pesos ($598 million), and revenue of 177.4 billion pesos ($9.188 billion) for its fourth quarter. Reuters reports that analysts only expected Walmex’s net profit to rise by 1.9 percent.
The retailer’s latest growth is partly due to 134 new stores Walmex opened in 2018, which Reuters noted was the most stores the retailer has opened in five years, contributing a 2.3 percent increase in total sales growth. In addition, Walmex has placed a greater emphasis on its e-commerce business, with Chief Executive Guilherme Loureiro calling e-commerce one of the retailer’s “biggest assets” that it will be leveraging to continue to buoy its brick-and-mortar stores.
For more grocery retail updates like this, keep checking back with AndNowUKnow.
HOUSTON, TX - All great chapters must come to an end, unfortunately, but there is nothing quite like looking back on our favorite pages nonetheless. Looking back right now is Max Henderson Jr., who just announced his retirement from his role as President of C&S Wholesale Grocers subsidiary Grocers Supply. Henderson’s last day was January 31st, he explained in a post, ending his over nine-year tenure with the distributor.
“This time with C&S has afforded me the opportunity to work with the largest wholesale grocer and industry leader,” Henderson wrote. “And it has been a great run! I have had the good fortune to gain excellent experience, work on challenging acquisitions (both buy and sell), and have been able to work with some great people. I especially want to thank all my colleagues at C&S for their tremendous support and assistance during this period.”
Henderson has long been a member of the retail grocery industry, according to his LinkedIn. Over his 30-plus year career, Henderson has worked for names like Bi-Lo, Giant Food Stores, and Ahold. He had a stint as President of Southern Food Markets, another subsidiary of C&S, and by 2014, Henderson became President of Grocers Supply—the role from which he has just retired.
“And now, on to the next chapter,” Henderson wrote. The industry veteran announced he will use his extensive experience as a consultant for retail and wholesale operations.
Congratulations to Max Henderson, Jr., on a career well-spent!