AUSTIN, TX - Since being acquired by Amazon in early last year, Whole Foods has been attempting to reshape its vendor policy, to realize synergies with its parent and new efficiencies brought about by scale and remain true to a brand identity that is deeply tied to the retailer’s relationship to small scale vendors.
The company even convened a summit for small scale vendors to vent concerns over changes in vendor policy and reach consensus on what a mutually beneficial vendor relationship between the retailer and its suppliers would look like earlier this year. But a report by The New Food Economy suggests that, despite inroads made by smaller vendors, Whole Foods may be passing the cost of its recently rolled out Prime price cuts on to its suppliers.
The New Food Economy’s reports that Whole Foods is planning to implement a 10 percent “scanback charge” for products on sale through the company’s Prime Savings Program.
An internal email obtained by the news source outlines the new charge—describing a scheme in which, when a customer purchases a sale item, the extra 10 percent offered to Prime customers will mandatorily be charged back to the vendor—potentially compounding the hit the that vendors take on sale priced items.
And while The New Food Economy notes that promotional pricing is a key tool for many vendors attempting to grow their brands, Whole Foods has, so far, provided no information on how many shoppers will be taking advantage of its new discount program and how new scanback charges are anticipated to affect sales.
To read the news source’s report in its entirety, click here.
How will Whole Foods attempts to remake its pricing and vendor policies affect fresh produce? AndNowUKnow will continue to report with updates.
CASTROVILLE, CA - Organics are everywhere, and that’s thanks, in part, to Ocean Mist Farms. Having grown organic artichokes since the year 2000, the company has broadened to become one of the most varied organic vegetable companies in California, offering upwards of 20 different items marketed under the Ocean Mist Organic label. With that in mind and the Organic Produce Summit (OPS) right around the corner, July 11th and 12th, I sat down with Ocean Mist Organic Sales Manager Joe Angelo to get the scoop on all thing organic at Ocean Mist Farms.
“The Ocean Mist Organic brand is born out of the same quality growing principles that date back to 1924 when the company first began growing farm fresh vegetables in Castroville, California. Since introducing the Ocean Mist Organic brand in the summer of 2015, we have grown our product line, increased our production by over 600 percent, and transitioned land so that nearly all of our product is in-house grown,” Joe tells me, explaining that Ocean Mist Farms will be the sponsor of this year’s morning field tours at OPS on Wednesday, July 11, in order to demonstrate that commitment to organics for attendees first-hand.
Along with sponsoring two OPS field tours, bringing attendees up close and personal with the expanding program at both Ocean Mist’s fields and facility, the company will also showcase its full line of organic fresh vegetables. Categories included in the line run the gamut from beets to Brussels and kale to cauliflower, covering the bases of any organic vegetable program at retail.
“Many of our key retail partners attend this show,” Joe explains when I ask him to expand on why Ocean Mist Farms is once again attending and sponsoring OPS. “We can showcase our organic program and product line in our own ‘backyard,’ offering facility tours and spending quality time with customers both before and after the show dates.”
But achieving a successful organic program after less than two decades of investment won’t slow Ocean Mist Farms down, Joe tells me. When I ask him what is on the horizon for organics, he concludes, “Ocean Mist Farms is dedicated to meet the continued increased demand in the organic fresh produce category.”
Come see all the action for yourself. Following the field tours, the Ocean Mist Organic team will be exhibiting at OPS booth #303.
NEWPORT BEACH, CA - GreenFruit Avocados recently announced that Kraig Loomis has been appointed Sales and Marketing Manager, effective July 2.
“Produce is an exciting business that is finding itself in the right place and right time in history and continues to grow as a category when other areas of grocery are struggling,” Loomis stated in a press release on the occasion of his appointment. “And even more exciting, avocados are one of those produce items that has found a fan following to grow in consumption and deliver new dollars in both retail and foodservice. Going to work with a company like GreenFruit also puts me at the right time and right place in history to work with an up-and-coming company that is equally passionate about the industry, quality, and customer service, and I’m excited to see what we can do together.”
Loomis comes to this role with 18 years of experience, 16 of which was spent in retail as a Produce Clerk, Produce Manager, Produce Inspector, Produce Specialist, and Produce Buyer with companies including Kroger and Fresh & Easy. Loomis transitioned to the grower/shipper side of business as the Sales Manager for asparagus, wet veg, and varietal berries at Progressive Produce.
In his new role at GreenFruit Avocados, Loomis will be responsible for building on the existing sales and marketing programs of GreenFruit and creating a culture of quality and service experience for every customer. This will include mentoring the Sales and Marketing team to achieve company goals, as well as personal goals.
“Our company might be young, but it’s not without passion or experience. Kraig’s hiring highlights our commitment to securing the best talent and utilizing the best resources to help all of our customers grow their avocado category sales,” said Brian Gomez, Vice President. “Kraig’s experience in retail will certainly be an asset in serving our customers and meeting their changing needs in a dynamic retail environment.”
When not involved in produce, Loomis keeps busy with his wife and family through a variety of sports and outdoor activities, including coaching his daughter’s soccer team and supporting his son’s Boy Scout Troop as an Assistant Scoutmaster.
Congratulations to Kraig on this new position!
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) announced that Fresh Seasons LLC satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA).
According to a press release, the Doral, FL, company can operate in the produce industry upon applying for and being issued a PACA license. Mario Baez, Fredy Martinez, and Jamie Penaranda were listed as members of the business and may now 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 includes 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. Its experts 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.
CHICAGO, IL - Jewel-Osco President Doug Cygan passed away this Thursday morning, July 5th, following a brief illness. He was 55 years old.
According to the Chicago Tribune, Cygan was “a well-liked and respected figure in Chicago’s intensely competitive grocery industry” who started with Jewel-Osco as a parking lot cart clerk nearly forty years ago at 17 years of age. Cygan moved up through the ranks of the company and was named President last year, replacing Mike Withers after Withers was promoted to EVP of Retail Operations for Jewel-Osco’s parent company Albertsons.
“Doug was a popular president, a strong leader within the company and in the community. Everyone at Jewel-Osco is devastated by his passing,” Mary Frances Trucco, Communications Manager for Jewel-Osco, said in a statement reported on by the Tribune.
During Cygan’s tenure as President of Jewel-Osco, the company launched a delivery service, increased its focus on bringing in local vendors, and expanded efforts to engage with the community; in November of last year, Cygan presented a $1 million check from Jewel-Osco to Chance the Rapper’s Social Works nonprofit—an organization working to improve Chicago Public Schools.
Cygan also served on the Board of Directors of the Greater Chicago Food Depository and the Northern Illinois Food Bank.
“He shared our belief that no one should go hungry, and we are very grateful for his contributions to our mission,” Jim Conwell, Senior Director, Marketing and Communications for the Greater Chicago Food Depository, told the Tribune.
Cygan is survived by his wife, Shonna, and six children.
LOS ANGELES, CA - It's hard to even think about organics and quality without thinking about some of the major growers making strides in our industry, and one of them is 4Earth Farms. With the third annual Organic Produce Summit (OPS) just days away, you won’t have to. As organic demand continues to grow, companies across the board are rising to meet the needs of retailers, foodservice operators, and consumers and, as always, you can count on the team at 4Earth Farms to respond to that need with its evolving year-round organic program.
Mark Munger, Vice President of Sales and Marketing, joins me in the lead up to OPS, to dish on the changing organic landscape and how its network of worldwide strategic partnerships allows the company to offer more and more organic SKUs year-round.
“Organics are no longer a niche in the produce department—they have become a destination,” Mark tells me and he reflects on that pace of change. “It seems like overnight demand has begun to outpace supply and, as we listen to the needs of our retail and foodservice customers, we are continuing to invest in our organics program to bring more value to the marketplace and the consumer. 4Earth Farms is uniquely qualified to tackle the year-round supply challenge—that is our promise.”
With more than 40 year-round SKUs within its 120 organic SKU portfolio, it is easy to see how 4Earth Farms can deliver on that promise. From green beans and Brussels sprouts to mini sweet peppers and kiwifruit—just to name a handful—the company is covering all its bases in terms of its organic supply and reach. Add in innovative packaging concepts, rich graphics, and messaging that pops on the shelf—retailers won’t only find value in the produce itself, but in the complete presentation.
“The Organic Produce Summit has really been a great avenue and resource for building those relationships with our customers and future customers,” Mark says. “The quality of the attendance and the opportunities for elevating and furthering the organic conversation, make it an event we look forward to every year.”
Curious about what is new with 4Earth Farms? Then add OPS booth 504 to your schedule, because believe me, you will not want to miss out.
ORLANDO, FL - Shifting its focus to be more inclusive, Produce for Kids (PFK) announced a partnership with Cory Warren of the Lean Green Dad website and podcast. Market research from Saatchi & Saatchi NY found that most millennial fathers think today’s ads don’t ring true to the engaged roles they play in maintaining the home and raising their children, but PFK’s new partnership with Lean Green Dad aims to provide a stream of content that is attractive to this audience. It will include a Facebook LIVE show titled Cooking with Lean Green Dad, which will air on PFK’s Facebook page.
“In our digital community of more than 300,000 parents and families, we have seen first-hand a shift in family dynamic,” Vice President Trish James said in a company press release. “Each family is unique, and the majority of our society is not necessarily made up of the nuclear family of the past. We regularly have dads, grandparents, and guardians tapping into our outlets for information, and we want them to feel welcome in that space.”
The show will air bi-weekly, starting this month, and will feature quick and easy plant-based recipes to help busy families cook at home more often. The show will welcome like-minded brand partnerships to inspire original recipe creations with full recipes available free on its website.
Cory Warren is a husband, father, and founder of the Lean Green Dad blog. He creates plant-based meal plans, ensuring that feeding your kids all their veggies is a cinch.
“At a very basic level, I think we can all agree that eating more fresh fruits and veggies is a good thing,” stated Warren. “Every parent wants what’s best for their family, but sometimes eating raw kale doesn’t work for kids and families. This show will help parents make healthy eating easy and fun, while helping serve the PFK mission of supporting parents and families nationwide.”
According to recent Pinterest analysis, the company reported that fathers make 1 out of 3 meals in their households, and they’re mindful of health. In 2018, Produce for Kids shifted much of its digital strategy that was previously focused on moms to incorporate dads, as well as grandparents.
For the latest in what's moving and shaking in the produce industry, stick with us at AndNowUKnow.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has filed an administrative complaint under the Perishable Agricultural Commodities Act (PACA) against Moza LLC (Moza).
According to a press release, the company, operating from Pennsylvania, allegedly failed to make payment to ten produce sellers in the amount of $357,144 from July 2016 through June 2017.
Moza will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry for two years. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.
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.
A press release from the team at Mastronardi Produce:
KINGSVILLE, ON & WAPAKONETA, OH - North America’s leading grower and distributor of specialty and commodity greenhouse produce announced that it has expanded with its sixth greenhouse in the USA, a 20-acre state-of-the-art facility in Wapakoneta, Ohio.
The farm will operate as The Ohio Greenhouse Company, and uses the latest innovative technology to provide fresh, local produce to the area year-round. The Ohio Greenhouse Company will focus on offering flavorful, non-GMO produce under the SUNSET® brand, and will be locally available at top retailers for Ohio and surrounding states including Michigan, Pennsylvania, New York, Indiana, Illinois, Kentucky and West Virginia.
“This new location perfectly complements our vision and plan for providing fresh, local produce to our retailers and consumers,” said Paul Mastronardi, President and CEO and fourth generation family member to lead the Mastronardi Produce organization. “Growing our local footprint and delivering on our long-standing ‘fresh from the farm’ commitment to our customers is something we are incredibly passionate about. We will be growing Ohio’s best red and flavorful tomatoes in the middle of the winter!”
In total, Mastronardi Produce grows and delivers fresh, locally grown flavorful produce to retailers from more than 4,000 productive acres of growing capacity. The new location offers the company the ability to triple the site’s greenhouse acreage in the future.
SAN ANTONIO, TX, and ROCHESTER, NY - It’s a rough game out there, but someone has to end up on top. Glassdoor released its list of 100 best CEOs, dubbed the Top CEOs 2018: Employees’ Choice, in which H-E-B’s Charles C. Butt and Wegmans Food Markets’ Colleen Wegman landed within the top 10! Butt sits at #7 and Wegman holds the #9 spot.
H-E-B and Wegmans were the only two supermarket to have their CEOs make it to the top 10. Zoom Video Communications’ Eric Yuan came in at #1 on the list.
The company looks into reviews and ratings from employees, as well as anonymous feedback from surveys about jobs, work environment, and employers over the course of the year.
CEOs are rated according to their employment experience, including leadership. In addition to survey responses for the CEO, contributors also rate senior management and other workplace experiences. One important aspect of the survey includes the approval, disapproval, and neutral stance employees have toward their CEO’s work.
Wegmans also landed on Glassdoor’s 2018 Best Places to Work: Employees’ Choice list, coming in at #49.
Congratulations to both Charles Butt and Colleen Wegman on this tremendous achievement. We look forward to seeing how your leadership will guide the industry and shape more success stories moving forward.