CHICAGO, IL - Hazel Technologies is rising to meet increasing international demand, announcing a new partnership with Dominican Republic-based AMR Agro—one of the country’s largest green-skin avocado packer and exporters.
“International interest in Hazel Technologies products has increased faster than anticipated,” said Aidan Mouat, CEO and Co-Founder of Hazel Technologies. “We look forward to building our relationship with AMR Agro and continuing to build traction in the United States and Latin America in the coming months.”
The partnership will initially focus on one of Hazel’s most recent innovations in post-harvest quality technology: Hazel® Avocado, a small packaging insert that is placed in the box during packing to reduce respiration rate and increase resistance to ethylene. The result, according to a press release, is longer fruit shelf-life and a higher-quality presentation following shipping.
The company explained that after successful commercial trials with Hazel® Avocado, AMR has adapted its use across a variety of its export programs from the Dominican Republic in order to maintain excellent-quality products with minimal waste during transport.
“Over the past decade, AMR Agro has grown to be a premier packer and exporter of agricultural products from the Dominican Republic,” said Raul Reyes, General Manager at AMR Agro, which was originally founded in 2007 and now exports to international markets including the U.S., Canada, Caribbean, Spain, Holland, France, and the U.K. “Through our dedicated partnerships and investments in new, proven technologies, such as Hazel® Avocado, we are able to provide higher quality fruit to our customers, increase profits, and reduce waste.”
The 8th in global avocado production as recently as 2011, the Dominican Republic is reportedly now 2nd globally in total production by volume, behind Mexico.
In the past year, more than 100 fresh produce shippers have partnered with Hazel®, including DFI Marketing for use with melons, and Agritrade Farms for use with okra.
Continue to read AndNowUKnow for the latest in produce industry technologies and partnerships.
WASHINGTON, D.C. - The U.S. Department of Agriculture (USDA) has determined that Oscar A. Lopez was not a responsibly connected member of Coram Deo Farms Inc., Tubac, Ariz.
According to a press release, Coram Deo Farms Inc. violated the Perishable Agricultural Commodities Act (PACA) by failing to pay a reparation award totaling $73,600 in April 2018. The USDA made an initial determination that Oscar A. Lopez was a responsibly connected member of the company. Oscar A. Lopez disputed the initial determination and the USDA subsequently determined that Oscar A. Lopez had separated from Coram Deo Farms Inc. before the reparation award was issued. Oscar A. Lopez may be employed by or affiliated with any PACA licensee.
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 impose sanctions on a 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.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named responsibly connected individuals. USDA also requires any unlicensed company that fully satisfies all unpaid reparation awards to obtain a license if it continues to operate in the industry.
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 3,400 PACA claims involving more than $58 million. PACA staff also assisted more than 8,500 callers with issues valued at approximately $151 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
SALINAS, CA - Icons bring industries, demographics, and yes...fresh fruits and vegetable brands to the forefront of the consumer’s mind, and if you are looking for a pop culture and fashion icon to bring together generations, look no further than Brooke Shields’ partnership with Foxy Brand Produce.
Not only did she rock the '80s and '90s alongside names like Linda Evangelista, Naomi Campbell, Madonna, Cindy Crawford, Iman, and Cindy Lauper, but she also penned that Foxy partnership in 1989 that added fresh produce to her resume.
This partnership elevates actress and model Brooke Shields in her role model status as an icon of wellness, fitness, and healthy lifestyles for the company’s brand.
“Our goal is to bring value to our retail partnerships and beyond, and with Brooke Shields as a face for our campaign it not only provides our company with great publicity, it is also an effective differentiator across the United States' produce departments and peer groups,” President Tom Nunes, Jr., shares with me. “It is all about bringing brand recognition that can span multiple generations while also encouraging fresh fruit and vegetable consumption. We are excited to continue building on this campaign and partnership.”
The campaign has already kicked off and will run through June of 2019, featuring trade advertising and a series of billboards throughout the Northeast, Southeast, Southwest, and Great Lakes region that target millennial parents, Generation X, and Baby Boomers.
“Brooke Shield’s presence in health and wellness really aligns with our brand and mission. These elements were a huge part of our goal to reignite the program,” Laura Hastie, Communications and Marketing Coordinator, reflects.
Looking forward to watching this campaign go viral! Congrats, Foxy on the road ahead!
ZAANDAM, THE NETHERLANDS - As the online market for grocery continues to intensify, Ahold Delhaize recently told the Wall Street Journal that it is looking to stabilize its position in the e-commerce aspect of U.S. business. This move includes consolidating separate online platforms operated by its various stateside banners, including Stop & Shop and Giant Food, which were formed before their parents’ merger.
This unified presence, Chief Financial Officer Jeff Carr told CFO Journal, is planned to be under Peapod’s delivery service.
“We will be integrating the platform with the stores and our loyalty cards,” Carr said, according to WSJ, adding that the retailer is considering opportunities related to technology and e-commerce. “We will keep our eyes open for acquisitions and partnerships.”
While the company declined to tell the news source how much it could spend on the transformation of its U.S. online business, Carr stated that there are “some synergies” from the 2016 merger that can be used for just that. The company said previously it expects €500 million (approximately $570 million) of net synergies until 2019.
Ahold Delhaize just released the results for its second quarter of fiscal 2018, showing growth in the Netherlands but -0.1% sales growth in the U.S., which it adjusted to 1.0% adjusted for the timing of Easter, according to CEO Frans Muller, who added plans for innovation and a revamp of the Stop & Shop banner in addition to the plans for partnering with Peapod.
"As part of these investments, we have announced the launch of Peapod Digital Labs, which will drive innovation, expertise and accelerate growth by creating a shared e-commerce infrastructure for all of our brands in the United States,” Muller commented. “We look forward to provide more detail on this at our Capital Markets Day on November 13 in New England. In addition, we will be sharing our exciting initiatives to update the Stop & Shop brand, our largest business in the United States, with a fresh new format which will be launched later this year."
AndNowUKnow will follow this and other retail growth strategies influencing fresh produce in the U.S. and beyond.
HOUSTON, TX - Sysco’s ambitious three-year plan has officially come to a close, not only hitting its initial goal of improving annual operating income by $400 million, but vastly exceeding it. From the plan’s launch in 2015 till now, operating income had increased by $665.1 million.
“Overall, I am pleased with our performance in fiscal 2018,” said Tom Bené, President and CEO, “which culminated in the successful delivery of our initial three-year plan, including the achievement of our adjusted operating income growth target. As we head into fiscal 2019, we remain confident in our ability to profitably grow the business and accomplish our objectives.”
Throughout the course of Sysco’s three-year plan, the company more than proved it had been using its investments to generate returns, surpassing its return on invested capital goal of 15.0% to reach 20.2%. The foodservice provider has made a number of investments in recent years, including the acquisitions of Mayca Distribuidores, Kent Frozen Foods, HFM FoodService, Supplies on the Fly, and Doerle Food Services.
As for Sysco’s Fourth Quarter and Fiscal Year 2018 reports, which were released alongside the company’s three-year plan results, the following highlights were noted:
Fourth Quarter Year 2018:
- Sales increased 6.2% to $15.3 billion
- Gross profit increased 5.7% to $2.9 billion; gross margin decreased 9 basis points
- Operating income increased 23.2% to $687.7 million; adjusted operating income increased 15.7% to $771.2 million
- EPS increased $0.28 to $0.85; adjusted EPS increased $0.22 to $0.94
Fiscal 2018:
- Sales increased 6.1% to $58.7 billion
- Gross profit increased 5.0% to $11.1 billion; gross margin decreased 19 basis points
- Operating income increased 13.4% to $2.3 billion; adjusted operating income increased 8.4% to $2.5 billion
- EPS increased $0.62 to $2.70; adjusted EPS increased $0.66 to $3.14
Sysco’s stock was up over 7% in the hours after the results were released, hitting a 7.41% increase as of 1:05 p.m. EST, according to Google Finance. As of the time of writing, Sysco’s market capitalization is at $38.09 billion.
DALLAS, TX - Much excitement swirls when we hear that a new speaker is announced for different events—our ears perk up with eagerness to find out what will be discussed. The Dallas Fresh Food Association (DFFA) announced that it is tapping into the power of produce and the expertise that Produce Marketing Association CEO Cathy Burns has to offer. Burns will be a guest speaker at the August 29th luncheon, from 11:30 a.m. to 1 p.m., which is sponsored by Wonderful Citrus, as the organization looks to increase consumption and careers in fresh food in the Dallas/Fort Worth area.
The topics explored by Burns will center around consumer demand—such as trends impacting foodservice, global retail, and technology positively impacting the industry as a whole. In addition to these points, Burns will dive into DFFA’s approach to community outreach, offering insight with her more than 30 years of experience in fresh produce and successful leadership with associations and community outreach programs.
“I love what the DFFA is doing to reach local community members to encourage more fruit and vegetable consumption, while emphasizing opportunities for careers in the fresh food space,” said Burns. “I’m honored to speak to this group of passionate leaders and look forward to sharing ideas and insights to help this group to go out and create positive change in North Texas.”
Other speakers for the association’s lineup of influencers include United Fresh’s Tom Stenzel, who spoke at the April 4th luncheon that was sponsored by Freightflow. Stenzel went over legislation, as well as shopper behaviors and how they compare to what was happening on the scene over 10 years ago. This spurred the group’s first committee planning meeting in June, according to a press release. Sub-committees that zero in on the association’s key goals, consumption and careers in fresh food, have met to create local events, in-school activities, and job training.
“Cathy is a shining example of what passion, drive, and intentionality look like in this industry, and we could not be more grateful for her insights this month,” said Beth Keeton, Marketing Chair for the Dallas Fresh Food Association. “As our committees continue to grow and bring new ideas to the table for community activation, people like Cathy and Tom have been instrumental in giving us the tools we need to be strategic and make the biggest impact.”
We look forward to seeing what innovations and progress stem from Burns’ interaction with DFFA members.
LOS ALAMITOS, CA - You can ask my family and friends, and they will all tell you a long established fact about me: there is nothing I like to celebrate more than a birthday. Thankfully, we have a birthday in the industry to celebrate to start the week on a high note. Frieda’s Specialty Produce celebrated its Founder and produce industry prioneer, Dr. Frieda Rapoport Caplan, on August 10th for her 95th birthday.
While most people would jump at the opportunity to have their birthday off, Frieda went into the office on her special day because, as the tireless and hardworking industry vet put it, “I already have Thursdays off, that’s enough PTO for me.”
Frieda has made a long-lasting imprint on the produce industry. This can be seen in the 2015 documentary film, Fear No Fruit, which highlights the fact that Frieda became the first woman in the U.S. to own and operate a produce company on the all-male Los Angeles Wholesale Produce Market, according to a press release.
In 1962, Frieda started with more unusual and new-to-market specialists, such as the introduction of consumers to kiwifruit, but she and her company would move forward with aspirations to inspire new culinary experiences for chefs and home cooks. The company introduced over 200 exotic fruits and vegetables to American consumers throughout the years—Sunchokes®, dragon fruit, habanero peppers, jicama, and Strokes Purpole® sweet potatoes being just a few of the items.
In 1990, the Los Angeles Times’ “A Dozen Who Shaped the ’80s” shined a light on Frieda alongside Steve Jobs, Michael Eisner, and Jane Fonda—what an accomplishment! While this recognition was outstanding, Frieda has been seen for her accomplishments throughout the years in a number of ways, including receiving an honorary Doctorate of Humane Letters from CSU-Cal Poly San Luis Obispo to celebrate her work as one of the country’s most successful female entrepreneurs.
Frieda’s achievements reach beyond our industry, too. She is currently on the Board of Dramatic Results, which is a nonprofit organization that solves issues in education by offering integrated arts programs to students and teachers on more than 40 California, Oregon, and Alaska public school campuses.
From all of us at AndNowUKnow, happy birthday, Frieda! We’re thankful for your tenacity and hard work!
MORGAN HILL, CA & CAPE TOWN, SOUTH AFRICA - Sakata Seed America (Sakata) has two things to announce: that its onion seed breeding program was sold to Zaad Holdings Limited (Zaad) and that it will be hosting its annual California Field Days in a few short weeks.
“We are excited about the partnership to market these genetics globally,” said John Nelson, Vice-President of Sakata. “Zaad has an outstanding reputation and capabilities that will enable them to expand production and supply channels in the onion market.”
Zaad is a vertically-integrated agriculture company headquartered in Cape Town, South Africa. According to a press release, Dr. Sean Fort—the program’s breeder for over 18 years—will continue onion breeding efforts for the company. Sakata will maintain the right of first refusal to market the acquired commercial onion genetics in their existing territories.
Zaad explained in the press release that it would continue to advance innovation and introduce quality new genetics to the market through the established breeding program and will supply the program’s seed moving forward.
“We at Zaad look forward to continuing to expand the genetics of this program. In addition, we are pleased about our new marketing partnership with Sakata, which is a win-win for both companies,” said Antonie Jacobs, CEO of Zaad Holdings.
Sakata is also excited to host their traditional California Field Days, which is a company tradition that has been going on for the past 32 years. Visitors join Sakata staff at both the Salinas and Woodland, California, facilities to explore an array of Sakata fruits and vegetables in the field.
“We have been hosting this week-long event since 1986. It’s our largest event of the year, and the one we look forward to most. Being able to experience the best of our products right in the field with our customers and growers really puts what we do day in and day out into perspective,” stated Justin Davis, Sakata's Sales and Marketing Associate Director.
California Field Days hosts seed distributors, growers, retail, foodservice professionals, and Sakata subsidiaries. In Salinas, the trials focus on cool crops, such as broccoli, baby leaf, beet, chard, and spinach.
Sakata’s new Woodland Innovation Center—comprised of over 200 acres in Yolo County—recently completed Phase one completion and will host all warm crops: melon, onion, pepper, tomato, pumpkin, squash, and watermelon.
“The new Woodland Innovation Center is an exciting culmination of infrastructure and land that we are continuing to develop over upcoming years. Currently, we have completed work on an office space, farm shop, washery, head house, and greenhouses on the property. It’s truly a sight to behold, and we’re looking forward to showing our customers and guests the progress!” Davis continued.
With the trials comes new literature designed to assist and enhance the Sakata product experience. Last year, Sakata released the Broccoli Master Guide in Salinas. This year, Sakata is excited to release the Specialty Tomato Master Guide at its Woodland trials. The Specialty Tomato Guide is an all-encompassing piece of literature designed to answer any questions regarding Sakata specialty tomatoes, as well as snacking tomato trends.
For the latest in fresh produce news, stick with us at AndNowUKnow.
OXNARD, CA - If there is one message constantly running laps in my mind this year, it is this: organics, organics, organics—and for good reason. The trend has become a movement, and the niche a produce department demands. With SEPC’s Southern Innovations Organics and Foodservice Expo on the horizon and slated for September 6-8, companies are rallying their organic category efforts in preparation for the show.
Mission Produce is one of those companies looking forward to the coveted event. Organic Category Manager Megan Berenbach joins me as we look to September to talk about the company’s offerings, message, and vision for the sector.
“We have seen a lot of potential in the organic category and continue to grow our source of supply to meet the growing demand,” Megan shares with me. “This year we will be highlighting our bulk, bag, and Mini organics in our exclusive Mission organic box.”
Mission has been beefing up its programs in California, Mexico, and Peru, and notes that the company is finding tremendous opportunity in Peru’s growing regions.
“Our retail program has really evolved over the past couple years. We used to just carry a bulk and bag option and would pack it in our standard Mission lug. Now, we don’t only carry those options, but we added our organic Minis and everything is packed in our Mission organic box,” Megan tells me. “This has provided a higher degree of distinction in the market for not only Mission, but organics.”
The company has seen growth of over 40 percent year-after-year over the past couple of years, a result which Megan attributes to Mission’s continued focus on gaining supply and continuing to innovate.
“We strive to meet the growing demand and service our customer base. The launch of organic Minis has elevated the program. Many retail customers were not merchandising small fruit, and now demand outpaces supply for the program,” she adds.
The avocado powerhouse’s message at Southern Innovations will encompass Mission’s strength in supply and innovation—factors which have been driving the growth and elevating the category.
When I ask Megan what sets Mission apart in the category, she tells me that it is the "Mission Advantage.”
“It’s our global reach, expertise in supply chain management, national distribution and ripening network, customer service, and innovation in the marketplace with packaging, solutions, and category management, that help us differentiate and excel,” Megan says.
With a track record like Mission’s, you better believe it. Cheers to seeing everyone at Southern Innovations in Nashville in just a few short weeks!
CINCINATTI, OH - Kroger could be calling it kaput with one of the world’s largest credit-card companies, according to a Bloomberg report. Last month, the retailer announced that it would stop accepting Visa cards at its California Foods Co. Supermarkets’ 21 stores and five fuel centers. In total, the retailer reportedly pays approximately $90 billion in swipe fees each year.
“It’s pretty clear we need to move down this path, and if we have to expand that beyond Foods Co., we’re prepared to take that step,” Christopher Hjelm, Kroger’s Executive Vice President and Chief Information Officer, told Bloomberg, noting that when the amount paid to a service provider, even Visa, “gets out of alignment, as we believe it is now, we don’t believe we have a choice but to use whatever mechanism possible to get it back in alignment.”
Hjelm added: “If we have to expand that beyond Foods Co., we're prepared to take that step.”
In a statement reported on by MarketWatch, Foods Co. said it would no longer accept Visa cards beginning August 14 in order “to save on the high costs associated with the credit card company’s interchange rates and network fees.” And the financial news source suggested that the “battle over credit-card fees may only get worse.”
While a Kroger-wide ban on Visa cards is seemingly unthinkable, the Foods Co. move could result in a victory for retailers attempting to gain leverage in negotiations over credit fees. MarketWatch quoted CompareCards Chief Industry Analyst Matt Schulz, noting that “every retailer is going to be watching this really carefully.”
“It’s a gamble for Kroger,” said Schulz. “The average consumer doesn’t know anything about swipe fees. All they would know is that their favorite grocery store no longer accepts their favorite credit card.”
Visa commented that the credit provider is committed to working with Kroger in perpetuity.
“Our goal is to protect the interests of our cardholders to ensure they can use their Visa credit cards wherever they shop,” said Amanda Pires, Vice President of Communication for Visa, in a statement to the Wall Street Journal. “Visa remains committed to working with Kroger to reach a reasonable solution.”
For more on the situation as it develops, keep reading AndNowUKnow.