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COALDALE, ALBERTA - The Star Group has opened its latest growing and packing facility in Culiacán, Mexico, which includes state-of-the-art packing facilities, text fields, propagation facilities, and greenhouses.
Prepped throughout the fall, the facility is completely functional and the main staple of the new location, the company’s Big Taste roma tomatoes, will first hit the market later this week. They will also be available in bulk format, bags, clams, and a brand-new top-seal package starting this January, according to a press release.
“We are thrilled to be shipping Big Taste romas into both Nogales and McAllen,” said Matt Bates, President of Mexico operations for The Star Group. “The crop looks great and the packaging presentation is really striking.”
Throughout the winter season, the Culiacán location will be shipping roma tomatoes, beefsteaks, grape tomatoes, and slicer cucumbers. Despite the severe weather conditions in Mexico, the new facilities and crops are holding their own.
“Our goal was to be able to grow and pack up to the standards of the Big Taste brand,” said Matt. “We are so thrilled with our Culiacán team and their passion to be able to achieve Big Taste right out of the gate.”
AndNowUKnow will continue to report on the latest facilities and packaging in the industry.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has cited Tumi Produce International Corp., Bronx, N.Y., for failure to pay for produce.
According to a press release, the company failed to pay $563,831 to seven sellers for produce which was purchased, received, and accepted in interstate commerce from October 2016 through May 2017. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, Tumi Produce International Corp. is prohibited from operating in the produce industry until Nov. 19, 2020, and then only after they apply for and are issued a new PACA license by USDA.
The company’s principals, William Bracho and Catherine Bracho, may not be employed by or affiliated with any PACA licensee until Nov. 19, 2019, and then only with the posting of a USDA approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by, or affiliated with, any PACA licensee without USDA approval.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industries.
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.
UNITED STATES - If it ends with the FDA and the CDC, it has to start there. This is what I have been hearing in droves when I ask suppliers in our industry where we fix the faulty system put in place to address foodborne illness, its impact on consumer perception, and its financial repercussions and aftermath. Our hearts go out to all those affected, and this article does not minimize those horrible experiences.
As an advocate for the produce industry, I wanted to see where the challenges and hindrances lie in the policies and procedures enacted by the CDC and FDA to address the E. coli outbreak and in the subsequent announcement advising consumers, restaurants, and retailers not to eat, serve, or sell any romaine lettuce as it investigates.
In response to the recent industry dialogue after the November 20th advisory that resulted in a purge of the category, industry sources concerned about government repercussions who chose to remain nameless, joined me to open up a dialogue on the issue.
“Best by dates on romaine products are around 16+/- days. Why are we looking for lettuce that's so old? Why did romaine that was consumed at the end of September/early October account for the purge of the category that followed the FDA and CDC’s announcement on November 20th?” as one source told me. “We need to put the right people in the room to make better decisions. Are the right people anywhere near the room? The apparent approach to solve things is by purging. This behavior is very expensive and may become habit-forming. Is purging really the way to reduce government liability? If so, the system is broken.”
At the end of the day, it appears that there are more questions than answers. Speaking with sources from the industry, it would be correct to assume that the early October product harvested at the end of September and end of October would have past its shelf-life and would not even have been a factor. So, should the announcement have been more specific: Consumers, purge your refrigerators, not your businesses.
Sources also tell me that a few lettuce processors knew in advance when the ban was going to be lifted. They started harvesting on the Saturday prior to the announcement that romaine was okay to harvest on Monday, three days before.
“It feels like the current process is a blame game,” another source adds. “Who can get out of the liability the fastest? I think it is time we start concentrating more on blockchain as a tool to streamline the process and bring transparency.”
One industry friend called the tact “A rush to judgment,” resulting in chaos. As they shared, the financial implications are judged by a very weak system put in place. Growers already have to, and mind you want to, jump through so many food safety hoops that protect the health of their own families, consumers at large, and retailers. I don’t know one company that sits on their laurels when it comes to food safety. But the problem is that we all speak the same language as an industry for the most part, but the consumer is bombarded with not only misinformation, but a lack of information at all.
Yes, safety first, always—but why can’t produce industry knowledge of shelf-life, harvesting transitions, and soil help improve the way we breach info to the public?
Where do we balance the “Consumers want safe food, but they want it affordable,” concept? How do we keep produce accessible to all and perfect and imperfect system? Is there a lack in communication with the FDA and CDC and suppliers that could account for this gap? United Fresh shared with us in a recent article how the industry gains information and why potential conflicts of interest limit our ability to help tighten the system. When an announcement is to be made public, depending on how quickly the agencies can work, associations may get a heads up 30 minutes to an hour beforehand, adding that conflict of interest prohibits involving the industry in the federal investigation.
We will continue digging into these questions if, for nothing else, the questions pave a road and create a dialogue for answers.
HOUSTON, TX - Major food distributor Sysco is cutting jobs at its shared services center in Cypress, Texas, in early 2019, according to a report by the Houston Chronicle. The number of layoffs has not been disclosed by the company, but Sysco has said the cuts are an effort to stay afloat amid rising transportation and food costs.
“As part of this initiative, the company anticipates the loss of employment for a modest number of associates at each of our U.S. broadline operating companies,” Sysco said in a statement. “We take seriously any decision that impacts our associates but feel this is a necessary step to better serve our customers and continue to position the company for success.”
While administration roles, like accounting, customer support, and payroll, allegedly could be the jobs under fire in this round of job cuts, a Sysco spokeswoman said the company also plans to hire other workers at its Cypress facility that will result in a net gain in jobs over the long term, the news source relays.
This year, a record-breaking trucking shortage rocked quite a few industries, with Sysco one of many unable to avoid the rising wages, overtime pay, and incentives needed to retain drivers in the current market.
“We continue to see expense challenges in the warehouse and transportation areas of our supply chain, which we anticipate will persist,” said President and CEO Tom Bené earlier this year. “We remain focused on the execution of our strategic priorities, which we believe will serve as the roadmap for additional growth and value creation.”
In a conference call with analysts, according to Seeking Alpha, Bené added: “Our problem is our operating expenses. They’re growing faster than what we’re getting on case growth. That’s our issue, and we’ve got to get back in check.”
Will Sysco’s latest strategy be enough to revive its bottom line? AndNowUKnow will continue to report.
SOUTH KOREA - Good Food Holdings, the California-based holding company of upscale grocery chains Bristol Farms, Lazy Acres Market, and Metropolitan Market, has been acquired by Emart, South Korea’s largest retailer, for $275 million. The Korean supermarket has shown interest in expanding in the U.S. but this sale marks its first foreign acquisition.
According to news source Korea Joongang Daily, Emart announced the purchase on Friday and promised that nothing would change after the acquisition.
“We are not planning to make any changes in the management of Good Food Holdings,” said an Emart spokesman. “Nothing in the operations of the three grocery chains will change in the immediate future.”
Good Food Holdings has a current revenue of nearly $598 million a year and a total of 3,100 employees that work for the company and its operations.
With this acquisition, the chain will gain Bristol Farms’ 12 stores across the LA and San Diego areas, as well as Lazy Acre’s five stores in the two cities. It will also take under its wing the Seattle-based Metropolitan Market, which operates seven stores.
How will this acquisition better position Emart’s expansion into the United States grocery market? AndNowUKnow will be on the lookout for the latest news.
POMPANO BEACH, FL - As I sit in California’s capitol celebrating our first real sight of winter weather, Peru is seeing a summer’s day and the right conditions for asparagus. Charlie Eagle, Vice President of Business Development for Southern Specialties, tells me that weather conditions have been normal for the season thus far.
“We are fortunate there have been no dramatic weather occurrences this year. December is summer in Peru. Typically, we may expect to see some light seeding as the month progresses,” he shares, commenting that importers are supplying abundant quality asparagus volumes to retailers with confidence this season. “Quality and availability have made U.S. retailers certain that asparagus should be a staple to consumers tables during the holidays.”
Peru has good volume as we head towards Christmas, he adds, saying that Southern Specialties expects that to start to come down by December 17-20, as well as Mexico’s asparagus. The main season is currently on track to run up to January 15.
“Peru remains a reliable source for high-quality asparagus,” Charlie concludes when I ask him what retailers should keep in mind. “Consumers look forward to enjoying asparagus throughout the year, particularly during holiday seasons.”
As we continue to keep out ear to the ground for all key produce categories through the holiday season, keep checking in with AndNowUKnow.
SANTA PAULA, CA - Bolstering its senior leadership team, Limoneira has announced four new promotions for the the roles of VP of Sales, VP of Packing Operations, VP of Farming Operations, and VP of Marketing.
“I want to congratulate each of these individuals and thank them for all of their contributions to making Limoneira a global leader in the citrus and agribusiness industries,” said Harold Edwards, Chief Executive Officer, in a recent press release.
He continued, “Each of these team members were already leaders within our organization, driving sustained results and value in their respective functions. These organizational changes will continue to strengthen our leadership team and further position Limoneira to execute on our ‘One World of Citrus’ strategy.”
John Carter was announced as the new Vice President of Sales, receiving a promotion from his previous position of Director of Global Sales. His new position will see him leading the entire sales organization, with responsibilities including: developing and executing sales strategy, promoting and coordinating foreign sourced product sales, internal team development, and continuing to ensure quality service to customers worldwide.
Previously the Director of Packing for Lemon Operations, Anthony Ecuyer, was named the Vice President of Packing Operations. He now oversees every aspect of packing worldwide, including operational strategy and execution, affiliated grower relations, and harvest operations.
The new Vice President of Farming Operations is Edgar Gutierrez, who was acting as the Senior Director of Agricultural Operations before his recent promotion. His new role will see him managing, administering, and growing the value of Limoneira’s farming operations worldwide.
Finally, former Director of Marketing for the company John Chamberlain was promoted to the position of Vice President of Marketing. He will now lead all facets of Limoneira’s marketing program, including: product marketing, event marketing, internal and external communications, and investor relations support.
AndNowUKnow congratulates all four industry leaders on their new promotions and looks forward to seeing how Limoneira continues to grow and innovate with their new Vice Presidents taking the reins.
KEENE, NH; OLEAN, NY - C&S Wholesale Grocers, Inc., recently announced that it has signed an agreement to acquire New York-based Olean Wholesale Grocery Cooperative, with the sale expected to close early next year.
“As proven by the nearly 100 years of success with Olean Wholesale’s premier service model, Bob and the Olean team have established themselves as outstanding operators in the wholesale food business,” said Mike Duffy, C&S CEO, in a press release. “We have admired Olean Wholesale and the impressive organization its talented employees have built, and very much look forward to partnering with the Olean team to continue this tradition and to expand the solutions available to their customers with the additional strength and scale of C&S.”
The press release noted that Olean Wholesale is a full-service grocery wholesaler with a variety of food products, such grocery, frozen, dairy, meat, and produce, in addition to other non-food, household, and personal care items. Currently, the wholesaler services over 270 independent food retail and convenience stores throughout New York, Pennsylvania, and Northeast Ohio. CEO and President, Robert Ketchner, will continue to manage the day-to-day operations, ensuring consistency for the employees, customers, and vendors.
“I am excited about the future and the new opportunities this partnership will offer the Members of Olean Wholesale. I believe that having the opportunity to combine the unquestioned service and dedication to our retailers with the scale and expertise of C&S will only make us better. I have had the pleasure of servicing our members for over 20 years, and I look forward to working with our team for many more,” said Ketchner.
For the latest in acquisitions, sales, and partnerships, keep reading us here at AndNowUKnow.
CORAL GABLES, FL - Del Monte Fresh Produce is ushering in the holiday season with a new consumer promotion and its first-ever holiday game for the most festive time of 2018.
A fun-filled way to encourage consumers to eat healthy fruit in lieu of traditional holiday sweets, Del Monte’s online game involves avoiding cookies and candies and collecting pineapples, grapes, and other fresh fruit with your playful snowman avatar.
Promotional tags on Del Monte Gold® Extra Sweet pineapples and stickers on Del Monte® branded fresh-cut products will encourage consumers to play.
In addition to promotional products in store, the game—available to play throughout the globe—is also being promoted through Del Monte’s social media channels and website.
To learn more about Del Monte’s products and promotions—and play the company’s new game—visit www.fruits.com.
Stay tuned to AndNowUKnow for more fresh produce news.