UNITED STATES - With last week’s news that the U.S. Department of Commerce intends to withdraw from the 2013 Tomato Suspension Agreement with Mexico came plenty of buzz from across the produce industry. Though buyers and sellers must continue to abide by the terms of the 2013 Tomato Suspension Agreement with Mexico until May 7 (when the withdrawal from the pact officially goes into effect), many members of the fresh produce industry have already expressed concern for, or cheered on, the U.S.’s decision. Below are just a few perspectives from tomato stakeholders.
“The Tomato Suspension Agreement has brought stability to the U.S. tomato market for over two decades, and it has been updated as the market has evolved,” said Lance Jungmeyer, President of the Fresh Produce Association of the Americas. “These updates have resulted in a wide selection of fresh tomatoes for U.S. consumers, while complying with U.S. trade laws, and adding enforcement mechanisms as the agreement itself has evolved. Despite Florida’s rhetoric, the record has shown that both Mexican growers and U.S. distributors have complied with the rules of the agreement.”
Jungmeyer noted that he believes there is still time to reach a new agreement that serves both U.S. growers of tomatoes, as well as importers of Mexican tomatoes. He said what the Florida tomato industry is trying to do is intended to discourage U.S. businesses from selling Mexican tomatoes and outside the scope of law. He also reiterated that it would be regrettable if the change caused an increase in tomato pricing or a reduction in varieties on supermarket shelves.
On the other side of the coin is Michael Schadler, Executive Vice President, Florida Tomato Exchange (FTE). He believes that the current suspension agreement has not been working as intended.
“The FTE appreciates the efforts of the Commerce Department to ensure that unfairly trade Mexican tomatoes do not continue to injure the American tomato industry,” Schadler said. “The Commerce Department recognizes that the suspension agreement is not working as intended under the U.S. antidumping law, and the American tomato industry appreciates Secretary Ross' decision to terminate the suspension agreement.”
Schadler said that the FTE has been working with the Commerce Department in its effort to negotiate a new and effective suspension agreement, though he also believes the Mexican tomato industry will need to join in on negotiations. If Mexican tomato interests do not join in the conversation, the American industry will have no choice but to pursue antidumping duties imposed on imports of tomatoes from Mexico, he warns.
Matt Mandel, VP of Operations for SunFed, also commented on the news.
“The news coming out of the Commerce Department that the suspension agreement will be terminated is sad, frankly,” Mandel said. “The choice to withdraw is a politically-motivated choice as negotiations have been continuing on and should be allowed to come to a proper conclusion. The real losers here are American consumers who will bear the burden of higher prices.”
Dante Galeazzi, President and CEO of the Texas International Produce Association (TIPA), echoed many of the same sentiments as Jungmeyer and Mandel and called on the Department of Commerce to justify its actions.
"To say the least, TIPA is disappointed about the Department of Commerce’s decision to withdrawal from the 2013 Tomato Suspension Agreement,” Galeazzi commented. “It’s an unexpected move, especially considering DOC did not point to any violations or other evidence of companies failing to adhere to the terms of the agreement. I think our members would welcome DOC explaining what they found to cite as ‘unfair trading practices.’”
He continued: “We would also like to see what the International Trade Commission (ITC) has to say regarding their findings. Hopefully, with the results from ITC as well as DOC, all parties can approach this process with an accurate picture as to the effectiveness of the agreement. It seems hard to fathom that, in the last 6 years, conditions have changed so much so that a renegotiation of the agreement would be necessary.”
AndNowUKnow expects more news to come out of the deal as we get closer to the May 7 deadline. Stay tuned for the latest.
BAKERSFIELD, CA - Sweet potatoes are my favorite spud, and Gina Pettit, at Country Sweet Produce (CSP), is inclined to agree with me. I had the chance to speak with the Director of Sales and Marketing about the company's organic sweet potato program, and boy, are you all in for a treat.
“CSP is focused on leading the category with fresh ideas and innovation,” she shared with me. “We want to make sweet potatoes more accessible and more convenient. Buying trends and interests are changing—and we are constantly looking ahead to forge a new path for new opportunities and product offerings.”
Some of these new offerings include the expansion of the company's organic sweet potato tray, which now offers a 2 ct and 4 ct in 2019. The organic baby sweet potato also made its debut during the 2018 holiday season and continues to grow throughout the beginning of this year.
“Engaging retailers in new product development is important to us,” Gina explained. “When people come to us with an idea and engage in the process, they are invested in the result and success of the item. Many retail stores are fortunate to have tenured decision makers who started as stockers or store clerks, and they understand what works best at the store level.”
With organic ring essential to retailers, I asked Gina for some of her tips on merchandising opportunities as we step into the new year.
“Extracting them from their neighboring potatoes and pairing them with produce items of similar nutritional value for a healthy lifestyle ad would certainly do them justice,” she said. “Consumers see potatoes, and all they see are unwanted carbohydrates, which is not true of sweet potatoes. Reclassifying and correctly referring to them as sweet potatoes pulls them away from the marshmallows and cinnamon during the holidays and into an everyday item that can be prepared with healthy ingredients such as kale and ground turkey.”
Tapping into this nutritional messaging and flavor versatility, retailers can easily drive traffic and sales in the category.
“At CSP, we are invested in organics,” Gina concluded. “This is our first year-round organic program. We expect to continue this trend moving forward. Every year, our farm is committed to transitioning more acres to organics and contributing to the the growth of our organic items.”
Stick with us here at AndNowUKnow for the latest in fresh produce updates.
ARLINGTON, VA - Looking to make further inroads into the U.S. market, Lidl recently announced the appointment of Roman Heini to its leadership team as Chairman. Having joined the company last October, Heini will be relocating to the company’s Arlington, VA, headquarters for his new position, which will be effective March 1, 2019. Heini will be collaborating with the management team led by Lidl US CEO Johannes Fieber. The team’s focus will be on supporting and optimizing the company’s U.S. store operations, its Best Market integration in New York and New Jersey, and it’s ongoing expansion into new East Coast markets.
“Roman’s decision to relocate to our Arlington headquarters with this appointment underscores Lidl’s commitment to the U.S. and is a major step forward in positioning us for dynamic growth,” said Fieber in a press release. “I look forward to welcoming Roman to the U.S. and driving Lidl’s success together.”
The new Chairman will be reinforcing Lidl’s commitment to the U.S. market, strengthening the company’s ability to support dynamic business development in the future. By taking responsibility for the U.S. side of the business, Heini will build on the successful work of International Board member Michael Aranda, who will subsequently assume new responsibilities on the company’s management board in Europe.
“I am honored to have the opportunity to join the capable team at Lidl US and to contribute to our expansion in the United States,” said Heini. “I look forward to working closely with the team as we continue to tackle the priority projects of our U.S. business.”
For more in corporate management news as it pertains to the ag and retail business, keep reading AndNowUKnow.
FORT LAUDERDALE, FL - The company behind the ubiquitous banana brand, Chiquita Brands International, announced a new, dedicated and integrated container service.
The new service is intended to set an even higher standard to safeguard the premium quality of Chiquita bananas across the world, the company noted in a press release, and in doing so, Chiquita is also reducing its carbon footprint.
“Looking back over these past years' work with the container fleet upgrade, we can proudly say we have achieved something remarkable” said Carlos Lopez Flores, Global President of Chiquita. “We’ve saved an unprecedented amount of energy—the equivalent of the CO2 emitted by 3,000 cars per year.”
According to the company’s press release, the new logistic service will now operate five full-container vessels to transport bananas from Central America to Europe’s Vlissingen port in The Netherlands—a modern hub that will allow Chiquita to serve all Northern European destinations with the best transit time in the industry.
Chiquita’s new investment in this new service will both result in fresher bananas and a longer shelf life; new ultra-efficient containers will positively impact fruit quality by using software that automatically regulates the containers’ compressor thereby controlling the atmosphere. And the implementation of this software will also result in a positive environmental impact, as consumption of CO2 has been reduced by 17,000 tons annually. In total, each new container is 50 percent more energy efficient than older models.
The company’s new vessels have also helped to reduce the handling of fruit at ports and increased stowage capacity by 12.5 percent, with more efficient storage from origin to destination guaranteeing the cold chain. These improvements will mean more bananas can be moved per trip, using less energy whilst still ensuring the fruit quality is prioritized.
For more fresh fruit and veggie news, keep reading AndNowUKnow.
WENATCHEE, WA - Hans Christian Andersen once said, “To travel is to live.” To that I say, “To travel via apple is to live even more.” Feel free to quote me. In an all-new marketing campaign, titled Apple Flavors of the World, CMI Orchards is celebrating not only a few of the top apple brands, like Ambrosia Gold®, KIKU®, Kanzi®, Smitten™, Jazz™, Envy®, and Pacific Rose™, but their homelands, too.
“We’ve assembled a compelling program that gives retailers a destination to display the best performing, hottest branded apples available and drive customer trial,” said George Harter, Vice President of Marketing. “The idea is that retailers can evaluate sales and then build plans for long-term variety improvement. From sweet to tart, crisp, and juicy to delicate and intense, there’s a winning flavor for every customer out there.”
According to a press release, the aforementioned popular apples were originally discovered in orchard locations in Italy, Belgium, Canada, and New Zealand, and are now grown in select orchards in the U.S. To highlight these destinations, CMI’s Apple Flavors of the World promotion includes special signage, in-store displays, high-graphic packaging, and country flags. The campaign also offers special pricing to bolster retail success, drive excitement, and transform the produce aisle into an apple-tourist hot spot.
“This promotion features seven of the top twelve performing branded apples in the USA,” said Harter. “Nielsen scan data for the last 52 weeks of apple sales, ending December 29, 2018, shows the top three ranked branded apples, Ambrosia, Jazz, and Envy, totaled $186 million in sales versus a combined $77 million for all other branded apples in the top twelve combined.”
CMI is also helping retailers by offering them the ability to tailor or customize the Apple Flavors of the World promotion to fit any format, including store sales contests, display contests, and customer events.
“We have all the tools in place to tee up a powerful sales plan for our retail accounts, maximizing the tools included in the promotion,” said Robb Myers, Director of Sales. “We’re offering a turnkey solution that will ultimately expose more consumers to premium branded apples to help retailers pump up sales during the slower spring months.”
Harter added, “Our Apple Flavors of the World promotion is the winning ticket for retailers to capture incremental sales and drive excitement in stores.”
To trip on more produce whimsy and wonder, keep journeying through the latest fresh fruit and veg news with AndNowUKnow.
BERLIN, GERMANY - A year ago, the Migavia Group and United Exports announced their joint venture, at the heart of which was a strategy to speed up the delivery of next-generation OZblu blueberries to end consumers. Recently, the joint venture announced a significant entry into the Northern Hemisphere with Red Sun Farms of Mexico.
“Being able to pivot from precision agriculture in vegetables into a super fruit, is an exciting and absolute privilege for us to conclude this joint venture agreement with OZblu. For us, being part of this family not only fits well with our company DNA, but is a win-win, and we are delighted to be joining this exciting journey together with OZblu," said Thierry Legros, Managing Director, Red Sun Farms.
More than 80 percent of global fresh blueberry consumption is in the Northern Hemisphere, a press release noted. With OZblu growing the new genetics in the Northern Hemisphere, they will now be able to supply the discerning blueberry consumer a consistent and superior product experience all year round.
“This is good news for the entire blueberry category. We strongly believe that if the whole blueberry industry can elevate the consumer eating experience with new varieties of this superfood, it will lead to a transformative uplift and broader consumption for the entire blueberry industry and drive future growth,” explained Roger Horak, Global CEO and Founder of United Exports and Co-Founder of OZblu.
According to a press release, OZblu has helped to redefine the blueberry eating experience, with bigger, crunchier, and more flavorful fruit developed with new leading genetics by Dave and Lease Mazzardis.
“Too often consumers will buy blueberries and be disappointed with them. We have worked hard to create and develop blueberries that are firm, sweet and crunchy, which is how they should taste,” said Dave Mazzardis, Co-Breeder of the OZblu varieties.
The press release noted that Migiva, a diversified agri-group based out of Peru, is no stranger to precision agriculture.
“Being world-class growers ourselves, it is not every day that one is able to connect and partner with a professional and scale grower like Red Sun Farms. Not only do they complete our footprint in Latin America, but they too bring tremendous value in precision agriculture,” said Jonathan Geller, CEO of Migiva Group.
For the latest in fresh produce news, stick with us at AndNowUKnow.
BELLE GLADE, FL - Although I love the stuff, it was the bane of my existence way back when I had braces. I’m talking, of course, about corn—sweet corn, to be exact. What used to be a summertime staple has become a year-round treat. I spoke with Duda Farm Fresh Foods' Sweet Corn Commodity Manager, Bert Barnes, who enlightened me to the growing popularity of sweet corn and the impact of some precarious weather.
“The corn market is currently red hot with moderate supply and high demand,” said Bert. “Market conditions tend to climb this time of year, although this was not the case last year! Supply was extremely heavy with demand being really low.”
As with many crops, Duda’s sweet corn faced some tumultuous weather in its Florida growing regions, with over 6 inches of rain in January, most of which fell over just two days. While the rain and cold impacted harvesting, the more recent cooler temperatures and sunshine have given way to ideal growing conditions. However, the weather did have some impact on price and demand.
“A spike in price occurred after the cool, wet weather slowed growing and all but stopping harvest,” commented Bert, though he added that the overall quality during the growing season has been great.
It’s a good thing that corn crops are going strong, as I don’t know what I would do without my stalk-y snacks, especially now that I’m sans braces. I could wax poetic about my favorite cobbs, but I think it would get a little corny.
AndNowUKnow will keep you posted on all the crop updates you can handle.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a press release from the USDA, the following businesses and individuals are currently restricted from operating in the produce industry:
- JW Produce Inc., operating out of Watsonville, California, for failing to pay a $27,223 award in favor of a California seller. As of the issuance date of the reparation order, Veronica Martinez Vazquez was listed as the officer, director and major stockholder of the business.
- Listo Produce Inc., operating out of Los Angeles, California, for failing to pay a $1,484 award in favor of a California seller. As of the issuance date of the reparation order, Pedro L. Astorga was listed as the officer, director and major stockholder of the business.
- So Fresh Wholesale Corp., operating out of Weston, Florida, for failing to pay a $4,472 award in favor of a Florida seller. As of the issuance date of the reparation order, Mitchel G. Brandfon and Robert Vesco were listed as the officers, directors and/or major stockholders of the business.
- Weng Farms Inc., operating out of Garden City, Georgia, for failing to pay an $84,897 award in favor of an Oregon seller. As of the issuance date of the reparation order, Liya Weng was listed as the officer, director and stockholder of the business.
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 suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders, may not be employed by or affiliated with any PACA licensee without USDA approval.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,350 PACA claims involving more than $63 million. PACA staff also assisted more than 8,000 callers with issues valued at approximately $156 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
GRAND RAPIDS, MI - Effective February 18, 2019, SpartanNash will have a new Chief Merchandising and Marketing Officer (CMMO). The company announced that it has hired former Albertsons Division President Lori Raya to assume the role of CMMO.
Raya brings thirty-one years of experience in the grocery business to the new role. According to SpartanNash’s press release, Raya’s accomplished career extends over 30 years with Safeway, moving through the ranks from a store associate to store manager, district manager, Vice President of Retail Operations, Group Vice President of Strategic Initiatives, and multiple food category senior management positions. Raya served as the first female divisional president in VON’s 107-year history from 2012-2015 and, most recently, occupied the role of Division President of Albertsons from 2015-2018.
“Lori’s success as a strategic thinker, collaborative influencer, change manager, community contributor, and visionary leader has enabled her to lead marketing and merchandising teams to deliver innovative, customer-focused changes while driving sales and supporting associate development,” noted President and Chief Executive Officer David M. Staples, to whom Raya will report in her new role. “Her career path is also inspiring to all those who love this industry and want to help take the company to the next level. We look forward to having her onboard.”
In her new role as SpartanNash’s CMMO, Raya will be responsible for the development and execution of the enterprise-wide merchandising and marketing strategy, ensuring alignment with the enterprise's overall business strategy, and providing strategic direction to develop, analyze, and implement product assortment, brand positioning, sales planning, pricing, promotion, sourcing, and distribution for independent customers and corporate owned stores.
Raya will direct in-depth research and analysis of consumer trends and sales performance and attempt to drive innovation to enhance the customer experience in-store and online. Raya will also be responsible for increasing sales and market share, improving productivity and profitability, and cultivating an engaged, customer-centric work force.
In the CMMO role, Raya will succeed Larry Pierce who will retire this September. Pierce joined the company in 2008 and has served as Executive Vice President, Merchandising and Marketing, since 2014.
“Larry’s leadership, knowledge of the wholesale and grocery industry, and commitment to innovation have been key to our success,” said Staples, “and we appreciate his assistance throughout this transitional period.”
According to the company Pierce will transition his CMMO duties over to Raya, focusing on special projects until his retirement this summer.
For more retail and foodservice news as it pertains to fresh food, keep reading AndNowUKnow.
FOWLER, CA - California’s domestic citrus season is heating up as cold temperatures continue in the Golden State. And Bee Sweet Citrus is here to meet seasonal demand for specialty varieties like Cara Cara Navels and Blood Oranges—just in time for Valentine’s Day promotions.
“A perfect blend of taste and appeal, Cara Cara Navels and Blood Oranges are perfect for the upcoming Valentine's Day holiday,” said Director of Communications Monique Bienvenue, in a press release. “Both varieties are popular for their bright, colorful flesh and unique flavor profiles.”
Blood Oranges are available now until March, and Cara Cara Navels are available until April.
An increasing popular variety available just in time for Valentine’s Day is the Blood Orange. With it’s blushing rind and bright red flesh, the variety promises to have holiday revelers clamoring for their own Bloody Valentine.
“Blood oranges are as tasty as they are photogenic,” said Bienvenue. “The fruit's unique color comes from the pigment, anthocyanins. Like lycopene, anthocyanins also act as powerful antioxidants, and its berry-like flavor make them perfect for dessert and cocktail recipes.”
The photogenic fruit has unknown origins—though many speculate it traces its roots to the Sicilian countryside. Blood Oranges are generally medium-sized and are pleasantly sweet and a great source of vitamin C and fiber.
Another healthy and striking-looking variety available for Valentine’s Day promotions is the Cara Cara. First discovered in Venezuela in 1976, Cara Cara Navels are the product of a natural phenomenon. While the fruit's exterior looks like that of a Navel orange, its interior boasts a less-acidic, sweet, and raspberry-like flavor.
In its press release, Bee Sweet noted that Cara Cara Navels are perfect both as an everyday snack or as an ingredient for upscale culinary dishes.
“Cara Caras aren't just a delicious citrus variety, they are a nutritional powerhouse,” continued Bienvenue.“The fruit's attractive pink color comes from lycopene, a naturally occurring pigment and powerful antioxidant. Antioxidant rich foods, like Cara Caras, have been known to help reverse skin damage and can help contribute to a healthy immune system.”
In addition to antioxidant properties, the company noted, Cara Cara navels have approximately 20 percent more vitamin C than regular Navel oranges.
For more promotional opportunities in fresh fruit and vegetables, continue reading AndNowUKnow.