NEW YORK, NY - Although the merger between Albertsons and Rite Aid has yet to go through, speculation has arisen regarding what the future Rite Aid will look like. According to The Buffalo News, an analyst presentation put forth by the two companies shared ideas of what innovations such a merger could bring, and the focus on fresh produce has tongues wagging.
For instance, a merger with Albertsons would allow Rite Aid to see a focus on fresh grocery. The publication noted that the move toward food, health, and wellness would mean Albertsons would beef up its pharmacy under the Rite Aid brand, and Rite Aid would beef up its offerings of fruits, vegetables, and other fresh foods. In addition to a higher variety of food and beverage options cropping up on Rite Aid's shelves, fresher items like fruit cups and sandwiches would also be available to consumers.
The drug store would also gain access to Albertsons private label brands, which includes its popular O Organics line. Albertsons has been piloting an Amazon-Go type technology that would let customers buy certain products—such as the Plated meal kits it acquired last September—without interacting with a cashier.
In a letter to its shareholders, Rite Aid cited multiple reasons why it would be best to merge with Albertsons. The drug store claimed that its ability to deliver long-term value in the face of a rapidly evolving retail health store landscape would be strengthened by the merger.
However, some investors and analysts have been vocal in their opposition of the merger. In a Forbes report, Proxy advisor Glass Lewis recommended that Rite Aid shareholders vote against Rite Aid’s sale to Albertsons, citing a “poor execution review process” and “nil or negligible premium.” Lewis does not hold any Rite Aid shares himself, but the firm is known for offering analysis to investors.
With the vote expected to take place on August 9th, will this focus on fresh get shareholders to vote yes? AndNowUKnow will continue to report the latest.
WOODLAND, CA - Always one to advocate for the produce industry, Wegmans' VP of Produce and Floral Dave Corsi is adding yet another hat to his collection. The Center for Produce Safety (CPS) recently announced Corsi as its latest Board Chair.
“I am truly honored to be an integral part of the Center for Produce Safety, an organization whose sole mission is to improve food safety in the global produce industry. Because of CPS’s leadership and dedication supporting the health and well-being of consumers, research and implementation of best practices in the area of food safety will continue,” Corsi said.
Corsi brings 32 years of expertise from his role with Wegmans' produce deparment to CPS’s table. In his current role, he is responsible for procurement, merchandising, design, fixturing, and pricing—all of which will funnel experience into his new position with CPS.
“CPS is fortunate to have a dedicated group of volunteers who bring their time, expertise, passion and perspectives. We have been well-served by outgoing board members and thank them for their service. Chairman Corsi has assembled a great team for this next year. It has been an honor and a privilege to lead the board of directors since 2016, and I look forward to continuing participation,” Markon Cooperative’s Tim York, Corsi’s predecessor as Board Chair, shared.
According to a press release, officers elected to the Board of Directors, in addition to Corsi, are the following:
- Mike Stuart, Florida Fruit and Vegetable Association - Secretary
- Bob Whitaker, Produce Marketing Association - Treasurer
Continuing their term through June 30, 2021 are:
- Jimmy Bassetti, J & D Produce
- Tony DiMare, DiMare Fresh
- Natalie Dyenson, Dole Fresh Vegetables
- Steve Kenfield, HMC Farms
- Drew McDonald, Taylor Fresh Foods - Technical Committee Chair
- Stephen Patricio, Westside Produce
- Toby Purse, Lipman Family Farms
- Tim York, Markon Cooperative
The organization outlines its goal as uniting industry, government, scientific, and academic leaders in a partnership that works toward produce safety. The CPS Board of Directors provide guidance to ensure produce-specific food safety questions are answered with science-proven results.
Thanks to Corsi for once again advocating for the produce industry!
MONTEREY, CA - In a fashion fit for produce, the 5th annual Tour de Fresh rode into a crowd of waiting onlookers just after noon yesterday to cheers, applause, and even some cowbells, after nearly 300 miles of sweat, spills, and (of course) cycling.
“On behalf of Tanimura & Antle I’d like to welcome you to the official Finish Line Festival; we’ve been a premier sponsor for five years, and we’re very very proud to be connected with and support Tour de Fresh and support Salad Bars for Schools,” Tanimura & Antle’s Helena Beckett, who has previously ridden for the tour and acted as a key member of the support squad this round, said at the festival.
It was just the day before that the group traversed Mount Hamilton in triple-digit weather, which Kelly Ansaldo, sponsored by Tanimura & Antle, shared with event attendees.
“It’s so nice to be able to participate year after year; the different routes they really make you dig inside and challenge yourself, but it’s also about the camaraderie. I just want to thank my teammates; I think that’s the coolest thing. We all struggled—I don’t know if you guys got to know where we traveled. We were climbing hills at 111 degrees. We drank more water than we’ve ever drank here on the Tour de Fresh. You guys are awesome. Thank you for allowing me to be your teammate just one more time,” she said.
Even Olympian and former Tour de France rider Axel Merckx said the ride was a challenge—but promised to continue to return for love of the crew and the cause.
“Last year Anthony [Gallino] told me I had to come. When I showed up last year, someone asked, 'do I do this often'—I don’t. But I have to say I had such a blast, and it’s such a good cause; I didn’t have to be asked if I was coming out this year. I usually don’t do climbs, but I’ll do climbs for you guys,” Axel told the group at our final Tour de Fresh dinner, before DMA Solutions Dan’l Mackey Almy surprised California Giant Foundation and Tanimura & Antle with a story of when she was a young marketing assistant and two men made a lasting impression.
Rick Antle and Pat Riordan both, Dan’l said, never forgot her name and were among the first to call when she set out on her own to market for the fresh produce industry. In their honor, she and DMA Solutions made a generous contribution to putting salad bars in schools, promising even more to the first five riders who sang at karaoke after dinner!
Witness to it all at our final dinner, and in attendance on behalf of Virginia’s Fairfax Public Schools, was School Foodservice Director and school salad bar pioneer Rodney Taylor.
“School foodservice is not the butt of jokes anymore; we’re part of a transformation. It’s not a fad. In 1997, I started the first of its kind in the country, and today, it’s all over the country. So this is not a fad; you’re transforming our food system; you’re changing the way children will eat; you’re helping determine not only the quantity but the quality of their lives,” Rodney said at the finish line.
In addition to Mr. Taylor’s school district, Laredo ISD in Texas, Pueblo City School District in Colorado, and Vista School District in California will be receiving salad bars from the $141,000 check the California Giant Foundation presented to United Start.
United Start Foundation’s Andrew Marshall was also there to thank and get to know riders, introducing Robert Cuellar, School Foodservice Director for Laredo ISD, who shared that Tour de Fresh is helping to serve 23-plus thousand students in his district.
“You have impacted the lives of children that do not have access to many fruits and vegetables,” Cuellar said. “It isn’t easy to do for others, but you have reached and impacted the lives of children, not just in Laredo but in other districts as well.”
I cannot believe, even with an extra day, that my fourth Tour de Fresh is wrapped up and in the books. Donations however, are not. You can continue to help raise the bar (pun intended) as the foundation continues to raise money through August 31st.
Donate to Put Salad Bars in Schools
As for next year, in the word of Anthony Gallino, we are “back to the big show” as the tour returns to PMA Fresh Summit for its Anaheim, California, show October, 2019. Can’t wait to see the Tour de Fresh family return bigger and better than ever!
BRAMPTON, ON - Loblaw released its second quarter results, reflecting the current state of the market and how the company has implemented a strategic approach to business.
"Our base businesses continued to perform well in a very competitive marketplace despite significant cost pressures," Galen G. Weston, Chairman and Chief Executive Officer, said. "We are executing our strategy, improving processes, reducing cost, and expanding our digital presence to deliver the best in food, health, and beauty, for Canadians."
But beyond the issues the company highlighted in its press release was the following conference call. During the call, Weston expressed concerns over the current state of tariff tensions and what the future holds.
“We see a very strong possibility of an accelerating retail price inflation in the market,” Weston said, expressing that the new tariffs imposed by the Canadian federal government on July 1st on $16.6 billion of U.S. imports contributed to the market’s state, as well as higher transportation costs and low loonie contribute to the mounting pressures surrounding the conversation on prices, according to the Calgary Sun. “We don’t think it’s going to be meaningful, you know, super significant, but it certainly will be higher than what it is today.”
In the press release on the quarter itself, the following points were reflected:
- Revenue was CA $10.923 billion (US $8.357 billion), a decrease of CA $157 million (US $121 million), or 1.4%, compared to the second quarter of 2017
- Normalized for the disposition of the gas bar operations, Retail segment sales were CA $10.6 billion (US $8.11 billion), an increase of CA $105 million (US $80.3 million), or 1.0%, compared to the second quarter of 2017
- Operating income was CA $561 million (US $429 million), a decrease of CA $66 million (US $50 million), or 10.5%, compared to the second quarter of 2017
- Adjusted EBITDA was CA $1.027 billion (US $785 million), an increase of CA $41 million (US $31 million), or 4.2%, compared to the second quarter of 2017
- Net earnings available to common shareholders of the company were CA $50 million (US $38 million), a decrease of CA $309 million (US $236 million), or 86.1%, compared to the second quarter of 2017; diluted net earnings per common share were CA $0.13 (US $0.10), a decrease of CA $0.77 (US $0.59), or 85.6%, compared to the second quarter of 2017
- Adjusted net earnings available to common shareholders of the company were CA $421 million (US $322 million), a decrease of CA $25 million (US $19 million) or 5.6%, compared to the second quarter of 2017
- Adjusted diluted net earnings per common share were CA $1.11 ($0.85), flat compared to the second quarter of 2017
- The company repurchased 4.6 million common shares at a cost of CA $300 million (US $230 million)
For more fresh produce industry news and details on how the market is going, stick with us at AndNowUKnow.
DUBLIN, CA - There are so many moving pieces in our industry, and it takes a mountainous effort to keep track of them all. Insert iTradeNetwork, bound and determined to streamline the quality inspection process with its new program: iTradefresh.
Having quietly debuted iTradefresh earlier this year, the company brought the program to United Fresh, where it was met with more than a few incredulous “Why wasn’t this introduced sooner?”comments. Designed to streamline the inspection process, Fresh allows those on the retailer/buy side to standardize, automate, record, and react to their inbound inspections.
“A lot of the research we did in the industry showed that retailers had non-standardized processes to do quality inspections on all their produce,” Trey Ruello, Product Manager for Trace and Fresh Products shares with me, explaining where the need for a modern, advanced solution came into play. “We knew the industry needed a solution that enabled a more thorough and actionable inspection on all of its produce, be it in the field or inbound to a distribution center.”
Currently, the system focuses on the retailer side, although Trey informs me that the company is working on a system that the supply-side can use, too.
“What it does is it allows you to, across your entire enterprise, define and standardize inspections for your inspectors,” he explains to me. “And then the platform will guide your inspectors through those inspections, which are custom tailored to each product and each product category that you’re receiving. This guides the inspectors through the workflow of that inspection, allows our customer’s inspectors to hone in on the metrics they want to focus on, and automates the necessary calculations.”
Trey gives me an example to solidify the process: if retailers know they want strawberries to come in at a certain temperature, that information will be directly input when the inspector takes the temperature of the incoming items. Rather than being kept on paper records, the information is conveniently dropped into the system, compared to allowable thresholds, and recorded so that a retailer can view that data later. With respect to defining an inspection, for any given commodity, there can be about upwards of 20 different metrics, Trey shares.
“It was the goal to really streamline the inspection process,” Trey tells me. “It’s hard to get people to change, but once you have a platform that automates the process, it’s easier to move forward with standardizing that process.”
For those who attended United Fresh, the feedback was unanimously positive.
“People really like the platform. It’s something they benefit from and they wished we’d released this earlier,” Trey shares with a laugh. “They in particular shared that they liked the reporting component of Fresh, which leverages the inspection data to provide additional insights.”
In addition to the program’s success, the company will be hosting a webinar at the end of this month, where iTrade will be talking exclusively about inspections and how Fresh relates as a solution to problems within the industry.
“We’re going to talk about inspections within the produce industry and what the positives and negatives are,” shares Alexander Swart, Product Marketing Manager, giving me the rundown on what retailers can expect to learn from this webinar. “We’re going to use fresh produce as an example of what tools in the industry help improve the inspection process. We’ll also be talking about and our product does and how it can benefit retailers and suppliers.”
To sign up for the webinar, click here.
For more up-to-date news on how iTrade and others in the industry are looking to make headway in standardizing processes, stick with us at AndNowUKnow.
WENATCHEE, WA - Stemilt Growers’ Rushing Rivers® pear crop is nearly upon us, and the premier provider of pears is urging retailers to get the first Rushing Rivers® pear promotions of the new crop set in place now.
“Harvest is trending a week ahead of last year, with increased crop volumes over last season and the ideal bulk size range coming retailers’ way,” said Brianna Shales, Communications Manager. “We’ll start the season in mid-August and recommend bulk and bags for the first promotions aligned with back-to-school timing. The time is now for retailers to shift their focus onto summer pear varieties. A strong early season promotion sets retailers up for a strong season which will result in elevated sales dollars, high volumes sold, and some very happy customers.”
With fruit the company describes as “perfect, pristine, [and] palatable,” retailers can drive sales throughout the back-to-school season—beginning with Tosca and Bartlett pears the week of August 20 and Starkrimson coming on the following week.
And Stemilt notes, the majority of Stemilt’s Tosca pears—an early variety with a short season and sizing ideal for Stemilt’s Lil Snappers® kid-size program—are now certified organic and available under the Artisan Organics™ brand.
“Retailers should plan pear promotions on multiple varieties at least once a month starting in late August and running throughout the season,” said Shales. “The emphasis will be on bulk fruit, but Lil Snappers® 3lb bags will remain a great option for building purchase size and young fans of this heritage fruit.”
The industry can expect about 20 million boxes to be packed and shipped in this promising Northwest pear crop, Stemilt noted in its press release, with the company contributing upwards of 12 percent of overall volume.
“It’s been an ideal growing season for pears, with a long spring and great summer weather for growing sizeable pears,” noted Shales. “Stemilt has been a leader in the pear category for years and looks forward to another season of top quality, flavorful pears to delight consumers.”
To support pear category promotions, retailers can look to Stemilt’s easy-to-set-up display bins and branded packaging that highlights the pear’s origin. Retailers can also rely on the grower story that will help with brand transparency and give consumers a product they can trust.
And the company noted, in conjunction with its Operation Flavor program—a 360-degree commitment from Stemilt to elevate the consumer eating experience for pears from field to box—Stemilt has also built two Thermal Tech Tarpless® ripening rooms in the Fresh Cube to ripen Anjou and Red d’Anjou pears. And this season’s Summer pears will benefit from the high cooling capacity of the company’s jet coolers.
“Cooling is essential to the quality of pears harvested in August, and our cooling process is designed to back the high flavor, ready-to-eat pear process,” added Shales. “Our teams use a Stemilt-specific sequence that is designed for the best airflow and cooling patterns, giving our pears the exact things they need to ensure a ready-to-eat experience right out of the box. Trust goes a long way in the pear category. We have seen a decrease in the pear category over the last decade and Stemilt is working hard to reverse that trend through programs like Operation Flavor and our Rushing Rivers® pear brand.”
Stemilt’s Rushing Rivers® pears are produced in conjunction with Peshastin Hi-Up Growers in the Wenatchee River Valley and the Entiat River Valley—in close proximity to Stemilt’s packing, ripening, and shipping facilities—by multi-generational pear farmers who, the company noted, bring a world of knowledge and expertise to bear on growing.
For more fresh produce news, stay tuned to AndNowUKnow.
PROVIDENCE, RI - While SuperValu has been involved in a showdown with investor Blackwells Capital, it appears the company might have found a quick solution. United Natural Foods, Inc. (UNFI) announced today that it has entered into a definitive agreement to acquire SuperValu for $2.9 billion, paying $32.50 per share in cash—a 67 percent premium over SuperValu’s closing price Monday, according to Business Journal.
“This transaction accelerates UNFI’s ‘Build out the Store’ growth strategy by immediately enhancing our product range, equipping us to bring an attractive, comprehensive product portfolio to an expanded universe of customers,” said UNFI’s Chief Executive Officer and Chairman Steve Spinner. “Combining our leading position in natural and organic foods with SuperValu’s presence in fast-turning products makes us the partner of choice for a broader range of customers. Together, we can provide our ‘better for you’ products as well as other high-growth segments, improving customers’ competitive advantages in a dynamic marketplace. These benefits, plus our increased efficiency and productivity, will enable us to create value for our shareholders, enhance opportunities for our suppliers, provide a broader assortment for our customers, and create new prospects for our associates over the long term.”
As part of the acquisition, Supervalu will no longer operate its retail business, and while UNFI forecasts $175 million will be realized in “cost synergies” over the first three years, the supplier also outlined compelling strategic and financial benefits in a press release, including:
- Diversifying its customer base
- Enabling cross-selling opportunities
- Expanding market reach and scale
- Enhancing technology, capacity, and systems
- Delivering significant synergies
- Accelerating growth
“The combination of UNFI and SuperValu provides a substantial premium and delivers certainty of value to our stockholders, meaningful benefits to our customers, expanded opportunities for our employees, and the ability for us and our vendors to efficiently serve a varied customer base,” said SuperValu’s Chief Executive Officer Mark Gross. “We have been executing an ambitious strategic transformation for over two years. We believe that this transaction is the best and natural next step for our stockholders, customers, and employees. I am very proud of the unwavering commitment and focus of our employees in driving our strategic transformation and serving our customers. I am confident that, together, SuperValu and UNFI will be well positioned to succeed—and to help our customers succeed—in today’s grocery landscape.”
As part of SuperValu’s ambitious strategic transformation, the company reported in its first quarter fiscal 2019 results that it has successfully closed the sale and leaseback of seven owned distribution centers, completed the exit of its Farm Fresh banner after selling 21 stores to Harris Teeter, Kroger, and Food Lion, and announced its intent to sell its Shop ‘n Save retail operations. In addition, SuperValu reported:
- Consolidated net sales of $4.76 billion increased $1.24 billion, or 35 percent, including $1.34 billion from Unified Grocers and AG Florida
- Wholesale net sales of$3.81 billion increased $1.26 billion, or 49 percent
- Retail identical store sales of positive 0.4 percent
- Net loss of$27 million compared to net earnings of $9 million last year
- Adjusted net loss of$7 million compared to adjusted net earnings of $21 million last year
- Adjusted EBITDA of$98 million compared to Adjusted EBITDA of $118 million last year
- Total outstanding net debt, including capital leases, of$1.56 billion, a reduction of $305 million since the end of fiscal 2018
For the full details of UNFI’s latest acquisition or of SuperValu’s financial report, click here and here.
Will UNFI and SuperValu’s merger save the latter from Blackwells Capital and help the two stay strong in the volatile grocery retail market? Stick with us at AndNowUKnow as we continue to report.
FOWLER, CA - Whether you love them immensely because you have a few in your social and family circles or can barely tolerate their tech savvy tomfoolery (I can say this; I’m a millennial), the millennial generation is out in full force in the job market and Bee Sweet Citrus is celebrating the skills that they bring.
“As of right now, millennials make up approximately 20 percent of Bee Sweet’s labor force,” said Monique Bienvenue, Director of Communications. “Several of them now hold upper management positions after pursuing an internship or a part-time job with the company.”
One of these employees that Bienvenue speaks of is Chelsey Skooglund, a member of the Marderosian family and of Bee Sweet’s upper management team. Skooglund noted, as a millennial herself, that her generation is often more adept to working with new technology—something Bee Sweet has benefitted from in the past decade. Specifically, the company realized many of its technological advancements, including its state-of-the-art packing equipment like its brand-new lemon line that uses an automatic palletization system, have occurred in the last ten years.
“Millennials like to take on work that means something to them: purpose over paycheck,” Skooglund said. “Here at Bee Sweet, millennials find great purpose in what they do, and will act as a driving force behind the company’s future growth.”
In order to create a good relationship between itself and millennials and future generations, especially those seeking careers in industrial technology, crop production, mechanical engineering, and business management, Bee Sweet has strengthened its ties with California State University Fresno, California Polytechnic University, San Luis Obispo, and more. One Fresno State Agriculture Business graduate, Salvador Calderon, interned for Bee Sweet and found that his knowledge regarding the demand for California-grown citrus pulled back the curtain on the vast career opportunities available in our industry.
“There’s no doubt that the accessibility millennials have to technology will help pave the way for prolonged success in agriculture. Not only do we have the opportunity to grow professionally by learning from experienced management, we can also utilize our technical skills on equipment that is meant to bolster the efficiency of production,” said Calderon, who joined Bee Sweet’s shipping management team full-time after completing his internship.
In a recent company press release, Bee Sweet cited Pew Research, which reported more than one in three American labor force participants are millennials—which includes those currently between the ages of 22-36—making them the largest generation in the U.S. labor force, with agriculture being no exception. And, according to Forbes, millennials are enthusiastic about collaboration amongst coworkers and value flexibility and feedback, which has, as a result, shifted traditional leadership styles amongst management teams.
Skooglund added, “Bee Sweet believes that employees should be shown appreciation in ways that align with their strengths and encourage productivity. Millennials tend to be more understanding of this concept and find it easy to implement in the workplace.”
For more on how our industry is changing with the bright minds of our collective industry members, keep reading AndNowUKnow.
SALINAS, CA - Mann Packing has welcomed three new additions to its executive team with the hiring of Lawrence Henrard, Bob Licker, and Jeff Hutterer to the positions of Vice President of Operations, Regional Sales Manager, and Regional Business Manager, respectively.
Senior Operations Executive Lawrence Henrard brings over 15 years of expertise to his new role as Vice President of Operations. He most recently held the position of Commercial Director/President for the Morning Star Company. Henrard has also worked for Dole, Tanimura & Antle, and Amy’s Kitchen. He will be based in the Salinas area and will report to Jeff Cook, Mann’s Vice President and General Manager of Operations.
Industry sales veteran Bob Licker brings more than 41 years of expertise to the role. For the past 5 years, he held the position of Southeast Produce Sourcing Manager/Northeast Produce Regional Manager for US Foods. He began his career at the Hunts Point Produce Market and grew up in a family foodservice business. With a passion for produce, he founded his own produce company at the age of 30 and successfully ran the business for 22 years.
Eventually, Licker joined US Foods as a Produce Specialist in 2009. In his new role at Mann’s, he will be based on the East Coast and will report to Cody Ramsey, Mann’s Director of Foodservice Sales.
Jeff Hutterer, another industry veteran, has rejoined Mann’s as Regional Business Manager for the central territory. Hutterer, who previously worked for the company from 2008-2011 as a National Account Manager, is bringing more than 20 years of expertise to the role. He most recently held the position of Director, Retail Sales and New Business Development for IFCO Systems. Hutterer has also worked for Earthbound Farm, Ready Pac, and Chiquita. He will be based in the Minneapolis area and will report to Jeffrey Freeman, Mann’s Vice President of Retail Sales & Marketing.
Congratulations to Lawrence, Bob, and Jeff on this next chapter!
CINCINNATI, OH - Kroger has promoted Keith Dailey to Vice President of Corporate Affairs, effective July 24. He recently held the title of Senior Director of Corporate Affairs, and in his new role, he will continue to report to Group Vice President of Corporate Affairs Jessica Adelman.
In 2011, Dailey began his career journey with Kroger as External Corporate Communications, where he was responsible for media relations. After holding that title for five years, he went onto the Senior Director of External Affairs position in 2016, when he took on the tasks for Corporate Communications and Government Relations under the function’s new vision of actively enhancing and protecting the company’s reputation as well as elevating its story. From there, he was promoted to his most recent role, when "Associate Communications and Engagement" was added to his responsibilities.
Dailey’s new role will include leading Kroger’s license to operate practice, such as public policy development, government relations and advocacy, industry association strategy and relations, and other key stakeholder relations with special interest groups, according to a press release. He will be tasked with Kroger’s newly integrated communications team that zeroes in on associate engagement; labor and benefits communications; external communications, including national media relations; financial communications; issues and crisis management; and executive communications.
Dailey’s work is exemplified in Kroger’s Zero Hunger | Zero Waste and his role in the core team managing benchmarking, narrative development, and awareness of Restock Kroger. According to the company, Dailey’s corporate affairs work ushered Kroger to become a national thought leader and advocate for ending hunger, eliminating waste, and other social impact endeavors.
Congratulations to Keith Daily and the whole Kroger team!