MILPITAS, CA - AC Foods has been making waves in the produce industry over the course of the last year—swooping up big brands like Suntreat and Columbine Vineyards in key produce categories.
I recently spoke with Daniel Kass, Vice President of Sales for AC Foods, Suntreat Packing, and Columbine Vineyards, to learn more about the company’s growing operations and mission-based approach to ag.
“We've had tremendous response to our Sumo Citrus® and Holiday® Seedless Grapes—two of our flagship varieties—which we grow in California as well as in Australia,” Daniel told me, noting that, while AC Foods has been growing prodigiously, acquiring legacy brands throughout the western U.S., the company’s core mission is a commitment to regenerative agriculture. “AC Foods represents a number of sustainable, regenerative food products including blueberries, hazelnuts, citrus, and table grapes.”
The company is currently in an exciting place in terms of both its growth and seasonality, and Daniel tells me that the AC Foods family is looking forward to a solid early winter season.
“We're in the midst of our California grape season right now. We'll be—let's say—in the last two months of our Holiday® Seedless program,” Daniel said, as of PMA Fresh Summit this October. “California citrus is just launching in California.”
To learn more, watch our brief video interview above.
WENATCHEE, WA - Consumers might be swapping in their mistletoe for Smitten™ apples, with how much growth the fruit has seen since this time last year. Boasting more volume and better flavor as the trees of this proprietary apple age, Honey Bear Tree Fruit’s Don Zornes tells me “’tis the season to be Smitten.”
Smitten’s license holder, Pegasus LLC, is owned by the families of Randy Steensma and Barclay Crane, with Honey Bear Tree Fruit serving as the lead marketing partner.
“We are finishing up on the first season of our organic deal and it did better than we could have ever anticipated,” Don shares with me, adding that conventional Smitten apples also ran strong. “We saw remarkable movement. This first year of organic Smitten was incredible and conventional saw significant growth versus last year.”
Barclay shared with me some of the details on that growth and what it has meant for some of the team’s retail partners.
“Smitten has lit up apple categories at every chain that featured it this fall, including setting a record at one major chain for monthly apple sales across hundreds of high-volume stores,” he tells me. “Additionally, Smitten increased whole-store sales across an entire 160-store division in a national chain seeing declines across all divisions not carrying Smitten during the same period—an extraordinary result unmatched in Steensma or Crane’s careers. These results are not empty claims, but based on metrics supplied by the chains themselves. Smitten could very well be the most important SKU in an entire high-end supermarket for drawing in new customers and getting repeat business. Consumer response is over-the-top.”
Set to ship through the end of January, Don also adds that this will be a great holiday apple for its ideal baking quality—Smitten stays firm when baked and is known for being incredibly crunchy, offering sweet flavor with tones of tartness, and having a beautiful rosy blush to match that holiday decor.
“A lot of people do have wholesale brands, but as far as we can tell this is the first consumer-branded apple in the industry’s history. It’s a bit more unique and I think very memorable. Branding also helps as we start to export into Asia and beyond. It is critical for markets that don’t speak English—we make sure to have a very large PLU sticker emphasizing the two pink kisses so people see it and know that’s the apple they are looking for,” Don explains.
As for 2019, Don and his team says we are going to see exponential growth for both organic and conventional Smitten apples, so keep an eye out for this tasty fruit.
OXNARD, CA - Pete’s Living Greens is expanding its product line with two new additions, Organic Red Butter Lettuce and Organic Spring Mix. Not only are these new living greens offering a new meaning to "bringing the life to the party" this holiday season (living greens, get it?), the new products also showcase Pete’s efforts to double down on its commitment to answering consumer demand for more organic living greens.
“Demand for organic produce, and lettuce in particular, is at it at an all-time high and is showing no signs of slowing down anytime soon,” said Senior Director of Marketing Corrie Hutchens. “We are excited to be able to offer consumers sustainable, organic living lettuce varieties that are consistently high in quality all year round.”
Like all of Pete’s products, which are hydroponically grown and non-GMO verified, the new Organic Red Butter Lettuce and Organic Spring Mix have roots attached for extended shelf-life and superior quality and flavor, according to a press release. The company first revealed the new products at PMA Fresh Summit 2018 in Orlando, Florida.
“As we continue to grow, our focus is still on providing our retail partners across the nation with innovative, top-quality organic produce,” said company President Brian Cook.
Pete’s existing line of living lettuces and cress varieties are available at select foodservice outlets, grocers, specialty health markets, and club stores on the East Coast through 2019.
To stay ahead of the newest items in fresh produce, stay tuned to AndNowUKnow.
DENVER, CO - Two of SuperValu’s Colorado distribution facilities—operated by Advantage Logistics USA West, a distribution arm of SuperValu—may be closing, according to two notices filed with the Colorado Department of Labor and Employment. These filings state that the company plans to close warehouses in Aurora and Fountain, Colorado, in February 2019.
According to a report from The Denver Post, Advantage Logistics noted that another firm, Windigo, may take over and run the two warehouses.
“Windigo will be taking over the operations of the facility and the work that was done there; it is our understanding that they will offer employment to many of our associates. The work will still continue out of these facilities,” said Jeff Swanson, Vice President of Communications and Enterprise Learning, SuperValu.
The news source reported that Swanson did not provide an estimate of how many people would keep their jobs should Windigo take over the facilities. As of now, an estimated 750 workers are employed at the two warehouses.
AndNowUKnow will keep you up-to-date on the latest in what’s happening distribution-side.
LANDOVER, MD - Giant Food, one of the greater Washington D.C.-area’s preeminent retailers, has announced a $175 million capital investment into expansion and the improvement of its stores over the next two years. The investment will include a new store location opening in Fairfax Circle, VA, as well as 24 store remodels.
“As the region's leading grocer, this announcement is part of our long-term commitment to deliver a consistently exceptional experience for our shoppers,” noted President Gordon Reid, in a press release. “We look forward to updating and enhancing our existing stores and constructing both new and replacement locations to give our shoppers a fresh and imaginative selection, unique in-store experiences, and superior customer service.”
New and remodeled stores will reportedly feature new amenities such as enhanced perishable, produce, beer, wine, and spirits offerings; full-service florists; expanded natural and organic departments; hot Asian food bars; fresh squeezed juice bars; enhanced check-out zones; full-service pharmacies; and more.
Giant Food's latest investment investment comes in addition to a $21 million investment in a new Olney, MD, location—slated to open in spring of 2019—and new locations in Herndon and Alexandria, VA, that opened last month.
To learn more about the project, read Giant Food’s press release in its entirety here. And stay tuned to AndNowUKnow for the latest in fresh produce news.
MEXICO - I think it’s safe to say North America’s obsession with avocados is evergreen. With the green fruit only picking up speed in converting more into avo-believers, Catania Worldwide recently expanded its Mexico operations to include avocados to keep up with trends and its own business model.
I had the chance to speak with Andrew Amodeo, Sales, to find out more about Catania Mexico’s avocado certification and what retailers need to know about the company’s deep dive into the new category.
“The demand from our customers and growers for the past couple of years spiked our initial interest in the fruit, and it started to feel natural as we began to look into it more,” Andrew said to me when I asked why the sudden move into avocados. “Avocados also fit into our business model. We are heavily invested in Mexico and have access to preferred growers, facilities, and management that was ready to handle this. If we want to sell, it’s always to our advantage if we can grow, pick, pack, and ship as it gives us control over the process. Not to mention, the retailer gets to deal directly with the grower and packer.”
Catania’s avocados hail from Jalisco and Morelos and are available to buyers and retailers in Canada from October to June. Andrew noted that Catania is especially proud of the quality assurance it gives its customers to ensure the best eating quality avocado around. From the moment the avocado is picked and packed, Catania makes sure only the best product is selected for its Emerald Empire label avocados.
In addition to expanding into avocados, Catania has also taken notice of the recent resurrection of imperfect produce with retailers, distributors, and produce companies alike.
“For too long we have bought with our eyes and kept our focus on appearance, not quality. Avocados, in particular, lend themselves to the imperfect produce category because skin blemishes and other minor imperfections have no bearing on the actual fruit. And the consumer seems to be well aware of this,” Andrew told me, alluding to Catania’s possible imperfect produce offering to come.
Where will Catania head next on its produce empire journey? AndNowUKnow will continue to report on fresh fruit and veg expansions and more.
LOS ANGELES, CA - Avocados may offer us a bit of a wild ride in the way of promotable volumes, but on the demand side it seems that the way is consistently pointed up. Gary Caloroso, Regional Business Development Director for Giumarra Companies, updated me on the latest market details for this popular green fruit.
“Avocado quality is very good. There is promotable Mexican avocado volume now through the spring,” he shares, explaining this is a slight increase over last year’s season.
Gary says that California avocado volume will be less in the beginning of 2019, but that there will be a lot of demand for it.
“Avocado demand will increase toward the end of December as we approach New Year’s Eve and professional and college football playoffs,” he assures.
Avocados are among the produce categories enjoying the most growth in recent years, with an explosion of options and applications as consumers enjoy its versatility. As we look to what the new year has in store for this and other produce items, keep checking in with AndNowUKnow.
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.