NEW YORK, NY - If you’re Rodney McMullen, not a lot that happens in the grocery biz can surprise you, including Amazon’s acquisition of Whole Foods. Kroger’s CEO seems to always be prepared; that’s why long before anyone else had the e-tailer on their radar McMullen was already readying a digital strategy—one he has plans to further in 2019.
"We assumed that at some point, Amazon was going to do something in the physical world," McMullen told CNBC at the National Retail Federation's 2019 Big Show and Expo in New York City. He explained that Kroger had been working for years under the assumption that Amazon would either establish its own grocery business or acquire a retail chain. Then along came the Whole Foods deal in 2017.
McMullen explained that e-commerce has long been Kroger’s defense when it came to preparing for Amazon’s move into physical retail, and he even reached back to name the retailer’s 2014 merger with Harris Teeter as part of the strategy.
McMullen was able to "leverage" Harris Teeter's technology and tech team to "accelerate" its own digital position, Business Insider reported, and the proof is in the pudding. In 2018, Kroger's digital sales were a $5 billion business. McMullen said he predicts that number to nearly double in 2019.
More recently, Kroger has made other moves to bolster its defenses against Amazon, including partnerships with Microsoft and Ocado, as well as a new pilot with Walgreens. McMullen also noted Kroger’s Simple Truth brand as an area of investment. Simple Truth products are private label and are marketed as being largely natural, organic, and “free from.”
"It's over a $2 billion brand today, growing in double digits," McMullen said.
When asked if Simple Truth was a response to the reputation of Whole Foods’ stores, he pivoted a bit, but explained: "This was our solution to customers telling us that they don't want to have to look at the labels to understand what's in the product. They love it. The quality is outstanding."
But will Kroger still be a major player in grocery 10 years from now? Certainly, he said.
"It's such a big industry," McMullen continued. "Fortunately people will always eat. It's a $1.5 trillion industry, so I think there's plenty of room for a lot of players."
With McMullen at the helm, Kroger will undoubtedly bring us more major retail news in the months to come. Stay tuned for the latest.
NOGALES, AZ - As one of the most talked about growing regions and ports around thanks to its prime location smack dab on the border, it’s no surprise that Nogales is once again the star of produce industry news. This week, the Fresh Produce Association of the Americas (FPAA) is celebrating a facility expansion in Nogales that is set to broaden the availability of fresh fruit and vegetables, boost employment, and increase economic development for the region.
Governor Doug Ducey’s proposed budget of $700,000 will be invested in the construction of a cold inspection facility at Mariposa Port of Entry. This funding will also help Arizona companies expand operations to be year-round, which will bolster the Grand Canyon State’s job market and tax base.
“Imagine Nogales companies selling strawberries, raspberries, sensitive leafy vegetable items, and more,” said FPAA President Lance Jungmeyer, who also noted that Arizona’s ability to distribute high-value, temperature items like berries—which Mexican exports to the U.S. total more than $1 billion, according to the USDA—would help reduce unemployment during the normally low summer months. “Presently these items are not imported very much in Nogales because inspection infrastructure is not adequate during warmer months. Now, Arizona can participate in these lucrative markets.”
According to a press release, in order to demonstrate the value of adding a cold inspection facility, the University of Arizona conducted an economic impact study, which showed the project could add:
- Between $43 million and $48 million in additional output (sales)
- Between $27 million and $30 million increase in gross state product (value added)
- Between 214 and 241 additional jobs
- Between $15 million and $17 million in labor income (wages and business owner income)
- Between $3.7 million and $4.1 million in additional state and local tax revenues
This study was commissioned by the FPAA, which along with Santa Cruz County seeks to invest in the cold facility. The facility would be administered by the Greater Nogales and Santa Cruz County Port Authority. To add to the state investment, the FPAA and Santa Cruz County jointly have pledged up to $500,000 toward the project. Learn more about the study here.
For more fresh produce news like this, stay tuned to AndNowUKnow.
BENTONVILLE, AK - Retail giant Walmart is doubling down on its commitment to tech, with plans to hire 2,000 technology workers in 2019 to bolster its e-commerce business and in-store innovations. Whether it’s the robots scrubbing floors or the apps for online ordering, it will be exciting to see what tech innovations result from the hirings in the coming year.
All of the current positions will be a part of the Walmart Labs division, a division that is responsible for almost all of the company’s technological innovations that enhance the customer experience online and in stores. Included in Walmart Labs’ function are "any technical capabilities that power our stores, website, or app," said a Walmart spokesman, as reported by Northwest Arkansas’ Democrat Gazette.
Headed by Jeremy King, Chief Technology Officer, Walmart labs currently employs about 7,500 people, after a mass hiring last year of 1,700 people. The source reported that more personnel are needed, however, including software engineers, data scientists, designers, project managers, and other “technologists.”
In addition to these positions, the company is also looking for a Chief Executive Officer for a “stealth company,” a new startup in the company’s Silicon Valley tech incubator, Store No. 8. The source said that job duties for this position include “building a business from scratch,” working alongside the company’s senior executives, and also serving as a “public champion” for the business. The ability to handle competitive threats is a key skill listed in the job posting.
New jobs will be partly filled by current employees who desire to learn about the technological side of retailing, and partly by tech workers from outside the company, said Cameron Smith, Founder of an Arizona-based executive recruiting firm. "Finding these workers on both sides will involve heavy communications on exposing its internal and external labor pool to the amazing things that Walmart is doing with data," he commented.
With much of the company’s outside recruiting taking place on university campuses, Walmart plans to bring its story of growth into the future. Its fast expansion in the 1990s resulted from the company’s strong emphasis on its grocery line, with the supercenter concept, and mastery of data, said Smith.
"They gave away data to suppliers to run their businesses effectively," Smith noted, adding that targeting a younger hiring pool brings its own set of challenges. He suggested that the company should change the narrative, to step away from thinking of Walmart only as stores, in an effort to compete for top talent with companies like Google.
The new positions are to be spread across Walmart Labs’ nine locations, which are Bentonville AK; San Bruno, Sunnyvale, and Carlsbad in California; Portland, OR; Reston, VA; Hoboken, NJ; Dublin, Ireland; and Bangalore, India. Some of these locations are more desirable than others, and Smith admitted it can be difficult to convince professionals from other parts of the country, or world, to move to Bentonville, AK. However, he believes that after professionals arrive in Northwest Arkansas for their first visit, "the region sells itself and most of them never leave."
AndNowUKnow will keep you up to date on the goings-on of the Walmart tech division.
DES MOINES, IA - Hy-Vee is taking a page out of Blue Apron’s comeback strategy, launching a new partnership with WW—better known as the reinvention of the Weight Watchers brand—that will bring chef-inspired, nutritionist-approved meal kits to more than 200 locations throughout the retailer’s footprint. Hy-Vee will be offering brand new WW Fresh™ meals—all of which are ready-to-eat in 10 minutes or less and highlight at least one fresh produce category. The news comes just under a month after Blue Apron launched a meal kit program in partnership with WW.
"People are looking for nutritious meals that they can put together quickly at home, work, or even on-the-go," said Stacey Mowbray, WW’s President of North America. "Our WW Fresh meals feature quality ingredients inspired by WW Freestyle™, our most livable and effective program ever, making it easier than ever to enjoy delicious meals without spending time prepping and cooking."
Each WW Fresh meal serves two people and ranges in price from $14 to $20, according to a press release. Ingredients included are all pre-prepped and proteins are pre-cooked, so only three simple steps are required: combine, heat, and enjoy.
So far, Hy-Vee has announced plans to roll out the the following six meals:
- Beef Baja Bowl with Fire-Roasted Corn and Black Beans
- Grilled Chicken Tacos with Roasted Chipotle Sauce and Pineapple Slaw
- Two-Cheese Butternut Squash Rotini with Bread Crumbs
- Dragon Bowl with Thai Peanut Sauce
- Creamy Cavatappi with Parmesan, Chicken, and Mushrooms
- Lemon, Chicken, and Kale Salad with Parmesan and Almonds
"We believe WW Fresh will really stand out in the market," said Ryan Nathan, Vice President of the company’s WW Fresh division. "Curated by WW, the new quick-prep meals are nourishing, convenient options for anyone looking to pick up a meal on the way home and enjoy a home-cooked dish, ready and on the table in minutes."
Produce on the plate with little-to-no effort? Sounds like a win for our industry to me!
NEWARK, NJ - AeroFarms is welcoming Roger Post to its executive leadership team. Post will be taking on the Chief Operating Officer position in which he will oversee operations, food safety and quality assurance, engineering, farm construction, STACK/data systems, and R&D.
“I am excited to join AeroFarms on their mission to build sustainable farms globally to feed the world by leveraging my deep experience in large-scale food and supply chain, and I am looking forward to helping them create a positive culture where business can be a force for good,” Post said.
Post has a passion for people and organizational development which he cultivated over his 28+ years of manufacturing and supply chain operations experience with leading CPG food companies including Danone and Kraft Nabisco. He also holds a B.S. in Industrial Engineering from the New Jersey Institute of Technology and an MBA from the Lake Forest Graduate School.
Most recently, Post was SVP of Manufacturing Operations and Fulfillment at Danone Foods North America, where he responsible for over 15 manufacturing sites and attached distribution centers, engineering, continuous improvement, co-Mfg operations, environmental health safety, and the leadership of 3,800 employees, according to a press release.
“AeroFarms continues to lead the way for commercial production for indoor vertical farming, and Roger Post, with a proven track-record, is a great addition to our team to ensure the highest levels of safe, high quality production all year round for our key global selling partners as we look to transform agriculture overall,” said the company’s CEO David Rosenberg.
Congratulations to Roger Post on your new position!
FORT LAUDERDALE, FL - Everything is awesome; everything is cool when you’re part of a team—especially when that team is Chiquita Brands International and THE LEGO® MOVIE 2: THE SECOND PART. The two are joining forces in a new action-packed partnership and marketing campaign that includes new Chiquita stickers, a big screen debut, and even a new LEGO character.
“Chiquita bananas are bright and fun just like our fellow iconic brand LEGO, which is why we are thrilled to team up with THE LEGO MOVIE 2: THE SECOND PART,” said Jamie Postell, Chiquita’s Director of Sales North America. “Chiquita shares the common values of brightening up our consumer’s days and encouraging fun and laughter for all. We hope to provide a little bit of sunshine and happiness this winter season, inspiring fans to discover our special stickers, collect them, and share the love.”
The global partnership kicks off mid-January and runs for the four-week period leading up to the February 8th North American release date of the movie. During this time, Chiquita will unleash 300 million blue stickers featuring the most recognizable characters from THE LEGO MOVIE, including Banarnar—a LEGO brick-built banana character making his big screen debut. The stickers will also feature codes that will allow banana fans to play online games and win themed prizes. And, if consumers collect the film-themed Chiquita stickers and submit the unique codes (from the stickers or Facebook), fans will also be entered to win the ‘Chiquita Build For A Chance to Win’ promotion, which include prizes like movie tickets, LEGO brick sets, LEGO e-gift cards, and more.
Chiquita is also developing healthy and delicious film-inspired recipes that encourage building and teamwork amongst shoppers and their families. According to a press release, these recipes include Lucy’s Chiquita Banana master builder cheesecake, and General Mayhem’s healthy Chiquita Banana sweet sandwich, with more found here.
For more information about Chiquita, its Blue Sticker Program, and partnership with THE LEGO MOVIE 2: THE SECOND PART, click here. And, to stay ahead of the latest producey partnerships, keep enjoying AndNowUKnow.
BRITISH COLUMBIA - Anyone else get excited when they hear the phrase “new grape variety”? I can’t possibly be the only one. Here to amp me—and the industry—up just a little bit more is Oppy’s Bill Poulos, Grape Category Director.
“The South American grape industry, including producers in Chile, is growing new varieties that not only suit the palate of the marketplace but also offer advantages at home,” Bill explains to me.
Currently offering new varieties from Peru, Oppy is looking forward to these emerging varieties out of Chile in the next month. The company will offer the following:
Red Seedless
Timco: available Mid-February through mid-May
Allison: available February through April
Sweet Celebration: available February through April
Green Seedless
Arra 15: available February through April
“These grapes tend to be larger in size and are more flavorful than traditional varieties because they have higher brix, which makes them popular with our customers and their shoppers,” he says. “Meanwhile, the grape yields tend to be larger than other varieties, creating efficiencies for the grower.”
Bill tells me that timing is also an advantage to these new Chilean varieties because they are harvested later than the grapes they are replacing, increasing the availability of strong, sweet, and juicy grapes in the market come April and May.
“Last year, new varieties accounted for about 10 percent of the grape exports from Chile to the North American market. This year that number could double,” Bill shares. “Oppy looks to keep pace with this proportion, with approximately 600,000 cases of new varieties coming out of Chile.”
Due to Oppy’s impressive variety assortment, its customers are sure to delight consumers with flavorful grapes in the upcoming months.
PELION, SC - As January comes to a close, so do many of our healthy New Year’s resolutions, but leafy greens grower, processor, and shipper WP Rawl is poised to keep the health party going. In a recent announcement, the company detailed its freshly launched 2019 campaign, Farm Fresh Greens.
“As a company that has been in business for 94 years, we are excited to tell our story and remain the go-to Leafy Greens Guide for our customers and consumers,” said Ashley Rawl, Vice President of Sales, Marketing, and Product Development. “Produce doesn’t magically show up on retail shelves and we are excited to share this educational journey with our consumers.”
Not content to target only the millennial market, the company is going after baby boomers too, with a campaign lasting the full year. The campaign is centered around the idea of providing guidance and education on incorporating leafy greens into different lifestyles and knowledge of produce production, according to the press release. As a Leafy Greens Guide, the company will impart on consumers behind the scenes details and a peek into modern-day farming, including growing, processing, and distribution processes.
The company has brought on several registered dietitians in key market areas as part of the Farm Fresh Greens campaign, in order to serve as “Leafy Greens Guides” for nutrition and wellness. The dietitians will detail specific leafy greens, outlining key health benefits and a thorough nutritional analysis. Each month, the company will continue to partner with social media influencers, providing delectable recipe content using its processed leafy greens brand, Nature’s Greens.
At the center of the campaign, the company, registered dietitians, and social media influencers will share wellness tips, original recipes, recipe videos, nutritional information, and more on their websites, blogs, and social media channels. Offering a direct line of communication between consumers and registered dietitians, the Farm Fresh Greens website will serve as a place for questions about nutrition and wellness.
AndNowUKnow will keep you posted on how this exciting marketing campaign plays out.
SALINAS, CA - Know a mid-career grower, farmer, rancher, agricultural professional or individual working in an allied organization who is well on their way to becoming a leader in the California agricultural scene? Applications are now being accepted for Class 50 of the California Agricultural Leadership Foundation’s (CALF) California Agricultural Leadership Program.
“The founders and early supporters of the Ag Leadership Program would be extremely proud to know that we are recruiting our 50th class and that the program is still relevant, valuable and strong,” said CALF President Barry Bedwell, in a press release. “We look forward to seeing the pool of quality candidates for this milestone class.”
The Ag Leadership Program, operated by the CALF, is considered to be one of the premier leadership development experiences in the United States, according to that press release. The 17-month program is in operation from October 2019 to February 2020 and includes approximately 56 days of formal program activities.
To date, more than 1,300 men and women have participated in the program and are influential leaders and active volunteers in agriculture, communities, government, business, and other areas.
The costs of the program are underwritten by individual and industry donations, CALF invests approximately $55,000 per fellow to participate in the Ag Leadership Program.
The Ag Leadership Program operates in partnership with universities—Cal Poly Pomona, Cal Poly San Luis Obispo, Fresno State, and UC Davis—to deliver comprehensive, diverse and high-impact curriculum designed to improve leadership skills. In addition to monthly seminars, fellows participate in national and international travel seminars and receive individualized development coaching.
Candidates for the program are strongly encouraged to talk with Ag Leadership alumni and to attend a regional recruitment event.
For more information on the program and application process (the application is due no later than April 29), visit www.agleaders.org.
CALIFORNIA - The Golden State is still being pummeled with rain, and while we in California welcome the extra love to our reservoirs and snowpack, some growers are having to kick operations into high gear to protect their crops from damage.
Multiple news outlets are saying this storm has brought a record amount of rain to many parts of the state, and according to a report in the Sacramento Bee, runoff from the storms has flowed into the Central Coast all the way to Los Angeles as well as from the San Francisco Bay Area to the Sierra Nevada foothills. The National Weather Service has issued high surf warnings for San Francisco County through Friday, with 30-foot breakers along the coast of the North Bay, Monterey Bay, and Big Sur.
“All hands are on deck to evacuate water from the fields. It is our understanding that the heaviest rainfall is yet to come and we are anticipating another 2.5’’-3.5’’ over the next 24 hours,” said Greg Lewis, Director of Western Production for Duda Farm Fresh Foods when I asked him how how crops in Ventura county were expected to fare last night. “The fields are at carrying capacity, so flooding will occur. Many of our fields are close to the ocean’s coastline which means tides play a role in the clearing of water. We are hoping for minimal crop damage throughout the industry and that all remain safe during this event.”
Even greenhouse growers have been wary of the storm’s effects, which I found out when I spoke with Brian Cook, President of Pete’s Living Greens.
“As greenhouse growers, we are very lucky to be protected from the rain, but the overcast that comes with it will slow down crops. Lights are on to keep up with demand so we don’t expect any shortages to our customers,” Brian confirmed.
Jason Lathos, Manager of Commodities for Church Brothers Farms said harvests are much slower while conditions remain this wet.
"Wet weather has two major impacts," he said. "It slows harvest down to a snail’s pace due to muddy conditions, and although we use plastic on the pallets, we will get wet boxes. Number two is mildew—always a side effect."
We are still in the midst of the storm, so only time will tell what the true effects on fresh produce might be. Until then, AndNowUKnow will keep you updated with the latest.