CINCINNATI, OH; CHICAGO, IL; DEERFIELD, IL - Kroger and Walgreens continue to build on the exploratory pilot they announced in early October of this year, combining forces to offer customers a one-stop shop for all things grocery. Its latest initiative, Kroger Express—a curated assortment of 2,300 products—builds on this promise and will soon be offered at the 13 Walgreens test stores in Northern Kentucky. This selection will include Home Chef meal kits, national products, and Kroger’s Our Brands products. It will also include dairy, meat, produce, frozen, and meal solutions.
"We are redefining the customer experience in a variety of ways through Restock Kroger, including innovative partnerships like our test-and-learn pilot with Walgreens. We are excited to enter the next phase of the pilot," said Robert Clark, Kroger's Senior Vice President of Merchandising. "The Kroger Express concept creates easy access to our most popular Our Brands products through a fill-in grocery shopping experience for Walgreens customers, and our Home Chef Express meal kits provide customers with an on-demand solution for tonight's dinner."
According to a press release, the first concept store is operational in Florence, Kentucky. The remaining 12 pilot stores will be operational early next year.
"We're pleased to continue working together to explore new concepts that expand product selection to provide a better shopping experience and greater value for our customers," said Richard Ashworth, Walgreens President of Operations.
In addition to expanding this pilot program, Kroger also launched its Home Chef Express meals in 65 Walgreens locations in the Chicago area. Now, these select Walgreens will offer three Home Chef Express meal kit options, with recipes rotating bi-weekly.
"Customers have responded favorably to the retail meal kits at our Mariano's stores in the market and other Kroger Family of Stores located in different cities. The Walgreens expansion provides more Chicagoans convenient access to a quick, simple meal," added Clark.
Pat Vihtelic, Home Chef CEO and Founder added, "Making Home Chef Express meals available at Walgreens is another way Home Chef is making meal time easy. The Express recipes, which cook in 15 minutes, are meals anyone can cook and everyone will love."
AndNowUKnow will continue to report updates of Kroger and Walgreen’s latest pilot.
FRESNO, CA - Grape growers are giving thanks after more than 450,000 boxes of California table grapes were purchased by the USDA as a part of its tariff mitigation program. The fruit was included in the USDA’s Food Purchasing Program for the first time due to a 53 percent tariff imposed on U.S. grapes by China.
“The 2018 season has been a tough one for table grape growers,” explained Kathleen Nave, President of the California Table Grape Commission. “The tariffs on table grapes have been painful, but the real harm has been caused by the fact that tariffs on multiple competing commodities, such as cherries, stone fruits, and apples, caused more fruit of all kinds to be sold in the domestic market. The USDA purchasing program comes at a good time for table grape growers and is appreciated.”
The most recent data from the department found that shipments of table grapes to China were down 42.2 percent in volume and 41.2 percent in value this year when compared to 2017. Suppliers who were interested in the opportunity to participate in the USDA Food Purchasing Program had to become an official USDA vendor and submit bids in a competitive selection process.
Several California companies succeeded in the bidding process and were chosen to supply California table grapes to consumers nationwide. The grapes will be shipped to food banks and other food distribution programs across the U.S. starting this month. AndNowUKnow will continue to report on the progress of the Food Purchasing Program, and the effects of this massive purchase on the tariff-torn industry.
UNITED STATES and CHINA - Washington and Beijing have declared a 90-day ceasefire in the trade war between the two countries, prompting speculation—and hope—that the escalating tariff tension between the two countries will come to an end.
According to a Business Insider report, in a sideline meeting at Saturday’s G20 Summit in Buenos Aires, Argentina, Chinese President Xi Jinping and President Donald Trump agreed to temporarily suspend plans that would more than double the rate of U.S. tariffs on a $50 billion in Chinese goods.
The deal also entailed China agreeing to buy more U.S. agricultural goods, and Trump was quick to tout the agreement as a victory for farmers.
“Farmers will be a a very BIG and FAST beneficiary of our deal with China. They intend to start purchasing agricultural product immediately. We make the finest and cleanest product in the World, and that is what China wants. Farmers, I LOVE YOU!” Trump tweeted on Monday.
Some farmers, though, according to Business Insider, may not be able to recoup their losses after the threat of a 25 percent tariff stymied markets, caused current crops to languish and rot in storage, and resulted in shifting supplier relationships, with China looking to Europe and Latin America for commodities they had traditionally purchased from the United States.
The threat of this 25 percent tariff has already permeated the greater U.S. grocery industry in a number of ways; the Wall Street Journal reported last week that major U.S. retailers—including Walmart, Amazon, Target, and Dollar General, are already shifting their tactics in an effort to indemnify themselves against rising costs. And Chinese buyers have already shifted to markets like Brazil as they looked to secure supply and avoid the eventuality of prohibitively expensive 25 percent duties.
And though Trump cast the accord as a victory, the New York Times has reported that the appointment of Robert Lighthizer—“a veteran trade negotiator with deep skepticism toward China”—to lead U.S. negotiations may bring about additional hurdles.
AndNowUKnow will continue to report with updates.
CALIFORNIA - There was no need to move your space heaters out to the fields yesterday morning—California produce growers have narrowly avoided a crop freeze, with most products having already shifted down to southern growing regions in November. Mother Nature brought freezing temperatures across parts of the North Bay, East Bay, and Salinas Valley early Monday, giving growers across the region plenty of reason to be thankful that their Yuma and Imperial transitions had already been completed.
“We just wrapped up our harvest in King City and don’t plant again until the spring,” Megan Jacobsen, Vice President, Sales & Marketing for Gill’s Onions tells me, noting that the company’s crops were safe and sound. “Our onions are now growing out of growing areas in the Imperial Valley.”
On Sunday evening, the National Weather Service issued an advisory for "imminent or highly likely" below-freezing temperatures in parts of Santa Rosa, Napa, Concord, Livermore, and King City that would threaten crops and vegetation.
Other ANUK grower sources noted that there is little concern for frost in the area right now, as there are few products currently being grown in the Bay Area, including some cauliflower, broccoli, and onions.
For more on weather affecting fresh produce globally, keep following our updates at AndNowUKnow.
SANTA CLARA, CA - The greatest thing since avocado toast just hit headlines! Landec Corporation’s subsidiary Apio has acquired Yucatan Foods, expanding its operations with two guacamole brands, Yucatan® and Cabo Fresh®. The company’s latest acquisition bolsters its position in the plant-based food category and expands its portfolio of products with even more avo-tastic products sure to encourage more consumers to tap into the plant-based trend.
“We are excited for the team at Yucatan Foods to join Landec Natural Foods as we create a different kind of food company,” said Molly Hemmeter, President and CEO of Landec Corporation. “At Landec Natural Foods, we are re-imagining the way fresh, plant-based foods are grown, prepared, and delivered.”
Rooted in its 27-year-heritage, Yucatan brand guacamole (available in the deli section) offers an authentic Mexican taste that honors the traditions of local people, places, and ingredients, according to a press release. With unique blends of fresh ingredients and bold flavors from regions around the world, Cabo Fresh brand products—made with 100 percent clean ingredients and fresh Haas avocados and sold in the produce section—target plant-forward food consumers.
Following its acquisition of Yucatan Foods, Landec Natural Foods will transform from a packaged, fresh vegetable business to a branded, natural foods business with a plant-based focus. According to a press release, the U.S. guacamole category is approximately $375 million in consumer retail dollars and is projected to continue to grow as current household penetration of guacamole is 21 percent. In addition, Landec’s proprietary research shows that 17 percent of the U.S. population and 23 percent of the Canadian population are plant-forward consumers. As a result, Landec expects Yucatan and Cabo Fresh brands to help significantly grow its business.
“Plant-forward consumers are currently seeking solutions outside of retail stores—in foodservice, direct-to-consumer meal kits, and home preparation. Our growing portfolio of plant-based products enables us to work strategically with our customers to evolve the fresh perimeter of the store by offering solutions that attract the growing population of plant-forward consumers and bring them back in store,” said Hemmeter.
Landec Natural Foods’ current portfolio includes a range of products with 100 percent clean ingredient plant-based brands, like the Eat Smart® nutrient-dense superfood salads, the Sweet Kale Salad, the single-serve Salad Shake-Ups®, O Olive Oil and Vinegar, and Now Planting® pure-plant soups.
“The acquisition of Yucatan Foods provides Landec Natural Foods with on-trend products that consumers are craving. In addition to new guacamole recipes, Yucatan recently launched its Guac-N-Chips product, meeting the needs of the on-the-go consumer, and avocado butter products. The addition of Yucatan Foods not only broadens our plant-based product offering, but enhances the Landec Natural Foods capabilities within sales, customer service, supply chain and innovation to better serve our customers for the long-term,” concluded Hemmeter.
To get the inside scoop on the latest fresh produce acquisitions, mergers, and sales, keep following AndNowUKnow.
YAKIMA, WA - Domex Superfresh Growers® is taking the “launch” of its 2018 Autumn Glory® apple season literally—propelling the apple to new heights by actually lofting an apple into the stratosphere aboard a weather balloon.
“We originally pursued this project to have some fun and generate a little publicity for Autumn Glory apple,” CEO Robert Kershaw said, in a press release. “Customers and friends really enjoyed watching the video last year and learning about the creativity and energy of our team. This year the team took it to another level by involving kids in our community who are passionate about science and will someday be leaders in agriculture, which increasingly relies on technology and the people who operate it.”
This marks the second consecutive year that Superfresh Growers has launched its season in this fashion. Kershaw first conceived the project three years ago when he “discovered the skills and passion for such an adventure within the company.”
Information Technology teammates and tech enthusiasts Steve Potter and Jeff Johnston led the project for its second straight year—with the help of several members of the Superfresh team who participated in the launch and recovery effort.
“As with this balloon, it has been fun to watch the trajectory of Autumn Glory apple,” explains Kershaw. “Demand grew dramatically again last season, and this year continues to compound.” He added playfully, “The balloon adventures certainly play a big role in this, but I hate to break it to the launch team that the apple’s unique flavors—hints of cinnamon and subtle caramel notes—are probably what keep consumers and retailers returning for the apple.”
Team members designed and built the balloon system—with the help of students from three local programs focused on science and technology: Wide Hollow Elementary School’s Program for Advanced Learning; third-grade classes from East Valley and Wide Hollow elementary schools; a first grade class from Ahtanum elementary and the Yakima Valley Technological Skills Center (YV-TECH).
“A large part of what drives these projects is the involvement with schools,” said Johnston. “We want kids to see what is possible with technology today so they will be inspired to explore the technologies of tomorrow.”
Elementary school students learned about weather balloons and Earth’s complex atmosphere. They decorated the payload box with artwork and photos. Eli Potter, a student from Wide Hollow, narrated the launch to students in the classrooms via a livestream he set up himself, and students from YV-TECH were on hand to film the balloon release using a drone-mounted camera.
The cosmos-bound Autumn Glory began its voyage in an apple orchard in Selah, Washington. Two cameras documented the 28-mile trip. The balloon reached an altitude of 105,377.3 feet and experienced temperatures of -53 degrees Celsius before rupturing at the apex of its flight and drifting to earth under a parachute. Potter, Johnston, and Kershaw, who followed the balloon’s path using an elaborate array of HAM radio and satellite equipment, reportedly had a much easier time recovering the apple, cameras, and vehicle this year.
Watch Domex Superfresh Growers' video documentation of the flight here.
PROVIDENCE, RI - News surfaced last week that UNFI's subsidiary SuperValu is set to sell seven Hornbacher’s stores, as well as one currently under development in West Fargo, North Dakota, to Coborn’s Inc.
"As we previously discussed, our strategy is to focus on the wholesale business going forward, so finding a strategic buyer for Hornbacher's with continued supply opportunity was a top priority," stated SuperValu CEO Sean Griffin in a press release. "Coborn's is a long-standing SuperValu wholesale customer, and we're excited that they will carry on the Hornbacher's name and tradition of quality products and service."
The Hornbacher's store in Grand Forks, ND, is not included in the sale to Coborn's and will still close. Liquidation will begin at the store on Monday, December 3, and will close as the liquidation of inventory is complete.
Details of the sale, set to close on December 25 of this year, include the stipulation that Coborn’s retain the Hornbacher's name and enter a long-term agreement to utilize SuperValu as the primary supplier of all Hornbacher's locations. Coborn’s will also enter into an extended supply relationship with SuperValu, and both of the supply agreements will have minimum purchase requirements that are yet to be determined.
“We appreicate the tremendous service of our associates and their unwavering dedication to our customers through the years," said Anne Dament, SuperValu EVP, Retail, Marketing and Private Brands. "I know the store teams and staff will do an amazing job supporting Coborn's and continuing to make Hornbacher's a popular choice for the local community going forward."
AndNowUKnow will keep its eyes peeled for any developing details of the sale.
KINGSVILLE, ON and ONEIDA, NY - Mastronardi Produce is providing a big boost to its Backyard Farms® brand; the company has announced plans to grow the beloved brand by introducing a new high-tech greenhouse in the United States.
“This expansion allows us to meet the incredible loyal consumer and retailer demand for this brand," said Paul Mastronardi, President and CEO, and the fourth-generation family member to lead Mastronardi Produce, in a press release. “It also ensures that all Northeasterners can enjoy what New Englanders have come to expect—fresh-from-the-vine Backyard Farms tomatoes delivered within hours.”
The company promises its new greenhouse, located in New York state, will be the largest-ever single build in North America.
According to the company’s press release, the 71.6-acre glass greenhouse is only Phase I of the company’s mission to satisfy customer appetites—and exceed flavor expectations—for locally grown Backyard Farms tomatoes.
In total, Mastronardi produces and delivers fresh, flavorful produce to retailers from more than 4,000 productive acres of growing capacity. The company’s new greenhouse will more than double Backyard Farms’ greenhouse growing acreage and increase Mastronardi Produce’s internal greenhouse network to seven locations across the United States.
New York-grown Backyard Farms tomatoes are slated to hit stores by Fall of 2019.
WASHINGTON DC - What power, if any, does the produce industry have over its fate when the CDC and FDA makes what seems like snap decisions, much of that to taboo romaine lettuce weeks ago? With this question in mind I went to the voices of our industry on government issues.
Taking me into something of a reverse chronology, United Fresh’s Jennifer McEntire, VP Food Safety & Technology, explains 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, we get a heads up 30 minutes to an hour beforehand. It never feels like enough time,” Jennifer admits, but explains that with public safety in mind the FDA and CDC have to move fast. “Prior to that there might be rumors. Upon hearing any concerns from the industry, we will reach out and the FDA and CDC will be prompt to respond but often don’t have much they can share.”
Between confidentiality issues and ongoing questions in its investigation, the agencies can rarely give the industry answers that might help it circumvent the losses that accumulate in a massive advisory like that of romaine lettuce days before Thanksgiving.
“We are definitely strengthening our relationship with the FDA, but the best way to cultivate this is when we’re not in crisis mode,” Jennifer shares, explaining that the FDA and/or CDC will usually give industry representatives a heads up that an announcement will be made and organize a call prior to that announcement.
“These calls are usually limited to 30 minutes with a strict structure: here's what happened, here's what we are doing, do you have questions? To that, we’ve gotten much better at asking those questions, and sometimes the answers are comprehensive and very helpful. Sometimes, though, there’s just not a lot they are able to disclose,” she comments.
In these situations, Jennifer says the FDA and CDC have strict codes of conduct that United Fresh respects and adheres to in the interest of maintaining and strengthening that relationship. When I ask how much, if anything, the produce industry can do in aiding an investigation prior to the seemingly drastic measure of purging the market of a core product, she says they do everything possible without treading over the line.
“Unfortunately, conflict of interest prohibits involving the industry in the federal investigation. We are exploring ways of how we can do that while being cognizant of those restrictions, and I think there a lot of areas worth exploring, but it’s important to remember that you are always in danger of interfering in an investigation, and of course we would never want that.”
While the waters of how these decisions are made and where the buck falls are still a bit murky, one key takeaway for me is that the voices of our industry remain strong and continue looking for ways to better the process.
MONTEREY, CA - The Organic Grower Summit is nearly here, and among events not to be missed is the honoring of this year’s Grower of the Year. California Certified Organic Farmers (CCOF) and the Organic Produce Network (OPN) announced they will together honor long-time organic grower Thaddeus Barsotti of Farm Fresh To You as the 2018 recipient.
“Capay Organic is honored to receive this award and would like to pass on the credit and a special thank you to the individuals who have kept us farming organically for over forty years—our customers and family of dedicated employees,” Barsotti said on receiving the award.
Barsotti was born on his family farm, Capay Organic, one of the first farms to be organic-certified in Yolo County near Sacramento. There he heads up farm management while being active in growing and maintaining over 40 types (60 varieties) of organic fruit and vegetable crops. He is also co-CEO of Farm Fresh To You, a Community Supported Agriculture (CSA) and home delivery service that provides fresh, local, organic produce to consumers’ doorsteps, delivering organic produce boxes throughout the state of California.
CCOF and OPN said Barsotti was selected based on his ongoing commitment and dedication to excellence in organic production and organic industry leadership and innovation.
“Thaddeus Barsotti exemplifies the energy and innovation of a next generation of organic producers that now leads American Agriculture. His family legacy is part of our legacy, and his hard work and accomplishments pave the way to our future,” said Cathy Calfo, Executive Director and CEO of CCOF.
The Grower of the Year award, sponsored by AGCO, will be presented to Barsotti at the second annual Organic Grower Summit, December 12-13 in Monterey, CA.
“We are honored to present the annual Grower of the Year award to Thaddeus Barsotti. Thaddeus exemplifies what a hardworking, passionate organic farmer is all about," said Greg Milstead, Director of Sales, Southwest Region for AGCO.
Barsotti serves on the board of CCOF, a nonprofit organization that advances organic agriculture for a healthy world through organic certification, education, advocacy, and promotion. He also serves on the board of the Davis Farmers Market, according to a press release. He holds a degree in Agricultural Engineering from Cal Poly in San Luis Obispo. Barsotti’s parents began farming in 1976 and selling produce at farmers markets in the Bay Area, ultimately co-founding the well-known Davis Farmers Market.
The Organic Grower Summit, a joint production between CCOF and OPN, brings together organic growers, producers, and processors for two days of education, information, and networking opportunities with organic production supply chain and service providers. Attendee registration is $499, is all-inclusive, and includes admittance to the opening reception, educational sessions, keynote presentations, breakfast and lunch, and trade show floor. Discounts are available for CCOF members, as well as government and educational members.
While the tradeshow floor is sold out, attendees also have the opportunity to purchase tickets to a pair of additional activities:
- The 2018 CannaBus Tour from 8 am – 12 pm on Wednesday, December 12th
- The CCOF Foundation Dinner on Wednesday evening at 7:30 pm
Over 60 sponsors have confirmed support of OGS, the release noted. Exhibitors include soil amendment, bio-pesticide, seed, packaging, food safety, Ag technology, and equipment manufacturers who will be connecting with organic field production staff, supply chain managers, pest management advisors, and food safety experts.