NEW YORK, NY - This is officially the greatest Friday news ever, and my excitement is sure to carry over to Monday. As a longtime Bob’s Burgers fan, I saw this bit of news come down the pipeline, and my mouth practically dropped. Blue Apron, known for partnering with celebrities like Chrissy Teigen to up its consumer engagement, recently announced a partnership with 20th Century Fox Consumer Products to bring three burger recipes from Bob’s Burgers to life. These recipes, which include the “Quantum of Salsa Burger” and the “Gouda Wife Burger,” feature produce superstars like cucumbers and sweet potatoes, and they will be available for aspiring burger chefs to make in their own kitchens during the weeks of July 23 and August 20.
“Bob’s Burgers has built a highly engaged and loyal fan base over the past eight years,” said Blue Apron's Head of Partnerships, Christine Fu. “In collaboration with the incredibly talented Chef Alvin Cailan, we look forward to bringing the creative and whimsical recipes that are featured on Bob’s Burgers to life through the Blue Apron meal experience.”
The recipes were designed by Chef Alvin Cailan of Los Angeles restaurant Eggslut who has been responsible for previous Bob’s Burger pop-up restaurants in Los Angeles and New York City.
“Until now, my recipe creations were only accessible where my restaurants are located in Los Angeles or New York,” said Cailan. “I am thrilled to partner with Blue Apron and Bob’s Burgers to bring three of my original burger recipes to homes across the country this summer!”
The recipes, available only to Blue Apron customers on its Two-Person and Family Plan offerings, include the following:
- Week of July 23: The Quantum of Salsa Burger with Corn-Pepper Salsa & Onion Rings
- Week of August 20: The Gouda Wife Burger with Cucumber-Radish Salsa & Roasted Sweet Potatoes
- Week of September 17: The Absentee Shallot Burger with Caramelized Shallots & Fontina Cheese Fries
“We are so excited to bring the Bob’s Burgers and Blue Apron brands together with this fun, new partnership that allows the many passionate and enthusiastic Bob’s Burgers fans to directly connect with––and create––recipes featured on the show,” said Brian Gartland, Vice President of Global Partnerships and Business Development for 20th Century Fox Consumer Products.
Blue Apron x Bob’s Burgers recipes can be ordered for the week of July 23 starting now. In the official words of Linda Belcher: “Alright!”
STELLARTON, NS - Just six months after Sobeys inked a deal with Ocado to build its online presence, and mere weeks following its announcement of an executive shakeup, the company’s parent, Empire Company, has released fourth quarter results reflecting the changes it has made over the course of the past year and more.
The quarter, which ended May 5th, shows that Sobeys brought in $5.89 billion Canadian dollars, or $4.48 billion U.S. dollars. The results hiked 1.5 percent from about $5.80 billion for last year’s fourth quarter. Up 0.5 percent was same-store sales, but were flat excluding fuel. Nevertheless, the slight increase is a reprieve from last year’s decreases of 1.1 percent overall and 1.6 percent excluding fuel.
Further, Sobeys' total revenue for fiscal 2018 brought in $24.21 billion—which is 1.7 percent higher than last year’s $23.81 billion.
“We are proud of our achievements this year,” President and CEO Michael Medline shared in a press release. “We have restructured our company, taken out significant costs and stabilized our margins. This has generated an improvement in adjusted earnings of 80% and an increase in free cash flow of 27%. Going forward, our principal mission will be to grow sales and take back market share. This is not a simple task, but we now have the strategy, tactical game plan and team to get it done.”
Overall, Empire’s adjusted net earnings, net of non-controlling interest, came out to $93 million, or $0.35 per diluted share—this is nearly double of what it made last year, which came out to $50.2 million, or $0.18 per diluted share.
The closing of 10 Safeway stores in British Columbia, as well as other aggressive business strategies made by competitors, had a negative impact on Sobeys' parent company, Medline expressed on an earnings call. These factors impacted the company by 13 basis points on comparable store sales. Moving forward, though, the company is zeroing in on its restructuring efforts.
“As I said before, the biggest challenge we faced in Q4 and continuing into Q1 has been the material organizational restructuring changes we have seen especially in merchandising,” Medline said on the call. “Almost every single person in merchandising is in a new and/or expanded role. It is not reasonable to expect we would be on top of our game through this time. However, this was all expected as we discussed with all of you [indiscernible] over the last 13 months. In fact, we were exceedingly proud of our people, in the midst of a great deal of disruption they grew food comps, improved margins and took out cost in this disruptive period.”
According to the company’s press release, Empire launched Project Sunrise, a comprehensive three-year transformation to address the organization’s structure and to reduce costs by a whopping $500 million+ in annualized cost savings by the end of fiscal 2020. This launch is on track after its first year and benefits are seen as in-line with management’s expectations.
How will Empire’s phoenix-like efforts in this next phase of restructuring continue Sobeys growth? AndNowUKnow will keep you updated with the latest.
IRVINGTON, NY - BrightFarms, known for its locally-grown packaged salads, announced today that it secured $55 million in a Series D equity financing. The round, led by Cox Enterprises, a leading communications, media, and automotive services company, was joined by existing investors Catalyst Investors, WP Global Partners, and NGEN Partners. The company noted that this financing enables the continued rapid national expansion of BrightFarms’ network of local and sustainable farms.
“Cox is a long-standing, successful investor and operator, with a proven track record across multiple industries, and a long-time leader in corporate sustainability,” said Paul Lightfoot, BrightFarms Chief Executive Officer. “We have a bold vision to change the way Americans gettheir produce and this round will help us achieve our goals.”
According to a press release, BrightFarms, which operates greenhouses near metropolitan areas to provide supermarkets with consistent and year-round supply, has a one-week freshness advantage, innovative varieties, a more reliable and safe supply chain, and consistently higher category sales. BrightFarms has achieved success in the market with national retailers such as Kroger, Ahold, Albertsons, and Walmart.
The company currently operates facilities in Pennsylvania, Virginia, and Illinois. A new farm in Ohio will open this summer, followed by a Texas facility in early 2019. BrightFarms’ operations use 80 percent less water, 90 percent less land, and 95 percent less shipping fuel than long-distance, centralized, and field-grown suppliers. The company noted that all of its produce is pesticide-free and non-GMO.
For Cox Enterprises, the investment in BrightFarms supports a joint strategy in social responsibility and diversified growth. In 2007, the company launched its national sustainability initiative, Cox Conserves. Since then, it has invested more than $100 million toward environmental goals, including sending zero waste to landfill by 2024 and becoming carbon and water neutral by 2044. More recently, Cox has expanded its investment strategy to include sustainable technology businesses in water, energy, and food and agriculture.
“Since our founding in 1898, Cox has embraced innovative, game-changing businesses in their earliest stages like radio, television, cable TV, and broadband,” said Dallas Clement, Chief Financial Officer of Cox Enterprises. “BrightFarms presents a unique opportunity to reshape agriculture production and drive positive environmental change by growing in local, controlled-environment agriculture farms. We are excited about the opportunity to support BrightFarms’ growth as it scales into a national brand.”
In accordance with this news, David Blau, Vice President of Strategy & Corporate Development, and Lacey Lewis, Senior Vice President of Finance, Cox Enterprises, have joined the BrightFarms Board of Directors. Barclays acted as Placement Agent on the transaction.
NEW YORK, NY - The public sure seems to have missed BJ’s Wholesale Club—the retailer knocked its initial public offering (IPO) out of the ballpark, after being a private company for the last seven years and, just now, returning to the public markets. On Thursday’s close, shares for the wholesaler were up over 29 percent of the company’s IPO price.
On Thursday, stock for what was simply dubbed “BJ” for its ticker symbol on Wall Street closed at $22 per share, which is $5 above the IPO price of $17 per share. Ultimately, BJ’s Wholesale Club ended Thursday with a bang, as market capitalization reached around $2.78 billion, according to Wall Street Journal. This is a far cry from what BJ’s originally thought its market capitalization would be, which was $2.15 billion, as we previously reported.
The wholesaler offered 37.5 million shares in the offering, first expecting that its IPO would be somewhere between $15 and $17 per share.
Interestingly, the company had underestimated how well Thursday would go. It said it was expecting net proceeds to be in the range of $563 million, if shares landed around $16. Now, with plans to pay down debt—as of May 5th, $2.7 billion in fair value of total debt—the company CVC Capital Partners and Leonard Green & Partners, which took the retailer private in 2011, will keep a stake of about 69 percent once the deal is completed.
The Westborough, Massachusetts-based company employs around 26,500 and has about $12.75 billion in annual sales, with $50.3 million in profits in its most recent year’s results.
What’s next for the retailer? Well, CEO Chris Baldwin said that three to five club houses will be added to the family of locations per year. With these expansions, the company plans to further move into delivery services, as can be seen in its partnership with Instacart, CBS News reported.
“The retail industry continues to innovate as it reacts to what consumers want,” Baldwin expressed.
Will BJ’s successful step back into the public market boost its sales and give it a leg up on competition moving forward? If so, how will that take shape? AndNowUKnow will keep you updated.
WATSONVILLE, CA - As consumer demand grows for both organic options and convenience, Monterey Mushrooms works to deliver on both of these factors. Recently, due to the expanding number of natural and organic retail outlets, Monterey Mushrooms has upped its capacity to meet that demand.
"The company is now offering larger organic pack sizes, such as a 16 oz package, to meet consumer demand," said Mike O’Brien, Vice President of Sales and Marketing. "Our growers and harvesters embraced this market and we are pleased with the results."
Monterey Mushrooms will be exhibiting its entire organic line at the Organic Produce Show in booth #813. This year, the company noted that it has a new booth design that will showcase its new packaging. All new organic labels will be on display for the first time and the booth backdrop will have a life size image of an ideal mushroom set as well as an illustration of how mushrooms are grown.
“We know shoppers want organic mushrooms because organics are the fastest-growing segment in the mushroom category,” O’Brien added.
According to the Organic Trade Association, sales of organic food increases by the double digits annually, and more than 80 percent of parents reported buying organic food for their families. According to a press release, Nielsen research found dedicated organic buyers will cross channel shop and purchase private label organics to sustain their lifestyle commitment.
It took me a while to feel the mushroom love, but I think Monterey Mushrooms will give me the final push toward being hooked!
WASHINGTON, DC- The $428-billion farm bill has passed its next major hurdle, with the Senate version passing in a 86-11 vote. Included in the bill is continued funding for the specialty crop research, new funding in the fight against citrus greening, continued support of export programs, as well as support for both the Supplemental Nutrition Assistance Program (SNAP) and Food Insecurity Nutrition Incentive (FINI) program, which allow additional access to fresh produce for low income and food insecure families. Several associations that represent fresh produce have already voiced support for the bill.
“Yesterday’s vote is a testament to the tenacity of Senators Roberts and Stabenow, and demonstrates that a bipartisan approach to important policy measures is the best way to make improvements to policies and programs the fresh produce industry relies on,” said Tom Stenzel, President & CEO of United Fresh Produce Association. “As the Farm Bill process moves towards the convening of a Conference Committee, we look forward to working with members in both houses, and on both sides of the aisle, to achieve a final bill that advances the interests of the fresh produce industry in the areas of research, trade, nutrition, and other areas.”
When I asked the association to elaborate on a few elements of the bill that will most be of benefit to the produce industry, its team noted that an $80 million budget for specialty crop research initiatives and an additional $25 million fund to address citrus greening were important factors. Both the Market Access Program (MAP) and Technical Assistance for Specialty Crops (TASC) were also supported in the bill, helping to support crop exports and mitigate issues that arise with overseas contracts and compliance. FINI would also be increased if the bill were to pass, and SNAP would be continued.
Despite the support of the bill by many in fresh produce, analysts still question if the bill will be able to pass and be signed into law due to clashes between the Senate, the House, and President Donald Trump over new work requirements and SNAP benefits. The Senate bill doesn’t include the work rules, according to a report by Bloomberg, and the House version would make work requirements stricter and shift some SNAP benefits to job-training programs. The source also noted that Trump backs the work rules in the House plan, which just barely snuck by, passing 213-211.
With current farm programs beginning to expire on September 30th of this year, the legislature is being pressured from all sides to come to a compromise. AndNowUKnow will continue to report on how the proceedings will affect the produce industry once the bill progresses.
CHICAGO, IL - With so many people looking for inspiration in produce aisles, Mucci Farms is stepping up as a company wanting to lasso in consumers’ interest in new and interesting ways. Mucci's very own CuteCucumber Poppers won the Best New Packaging for this year’s United Fresh Produce Innovation Award at 2018’s Chicago-based FreshMkt Expo. The awarded company was selected after exhibitors and attendees voted on their favorite from a list of seven nominated packages in the category.
“We are delighted to win the packaging award for CuteCumber Poppers because we really feel like we’re bringing something new to the greenhouse produce category by including a tasty dip inside each container,” Director of Marketing Emily Murracas said. “In addition, our focus was to create multiple convenient packages to accommodate a variety of customers in the rapidly growing snacking category.”
The one-bite variety used in CuteCucumber Poppers are on a roll, having recently won the People’s Choice Award at the Leamington Greenhouse Competition. Offering incredible flavor paired with an irresistible crunchy texture, the product will be available in three pack styles to stay in tune with club stores, retailers, and foodservice.
“With this product, we decided to create a lineup of new packages to give our partners multiple options based on their demographics and value proposition,” Fernanda Albuquerque, New Product Development Manager, shared in a press release. “The 1.5 lbs and 5 oz top-seal packages are custom thermoformed trays that securely hold the dip container in place. The 9 oz tray is a 3 x 3 oz format with EZ Snap convenience, allowing consumers to tear off each container for 3 individual snack size packs.”
Attendees had the opportunity to check in with the company at their booth. The greenhouse grower also co-sponsored the breakfast session, which announced recipients of the 2018 Retail Produce Manager Awards. This segment of the show celebrated produce and foodservice industry professionals from across the continent.
“Sponsoring this event is important to us as it recognizes the front-line staff that bring our products to life through merchandising and recipes,” Vice President of Mucci International Marketing Joe Spano shared. “We’d like to congratulate all the award recipients and thank them for all they do to raise the profile of healthy eating.”
Congratulations to the Mucci Farms team! We look forward to seeing how your award-winning packaging pushes the category forward and inspires more consumers to fall in love with produce and the cute offerings our industry provides.
LA CAÑADA FLINTRIDGE, CA - Continuing its support of the Society of St. Vincent de Paul, Allen Lund Company (ALC) has kicked off its Christmas in July Toy Drive in downtown Los Angeles. ALC welcomes local communities to donate toys for underserved families at Christmas. Donated toys will be presented to families along with donated baskets of food to help families and children. The Christmas in July Toy Drive runs from July 2nd to July 31st. The company noted in a press release that it wants every child to have a Merry Christmas this year and no donation is too little.
"We are so happy to continue to support the Society of St. Vincent de Paul with our Christmas in July effort,” said Nora Trueblood, Director of Marketing and Communications. “We see up close the delighted faces when the children receive their Christmas gifts. While we are just one piece of this entire effort, Allen Lund Company remains committed to this annual event and making Christmas special for these most in-need children."
If you would like to donate, the company asks that you follow these guidelines:
- Toys must be new and unwrapped
- Sports equipment (Ages 3-17)
- Gift cards welcomed
The drop off location can be found at Allen Lund Company's Marketing Department.
4529 Angeles Crest Highway, Suite 101, La Cañada, CA 91011
For the latest in what our industry is doing to benefit the community, keep reading AndNowUKnow.
MCLEAN, VA - Gladstone Land is adding a 169-acre Oxnard, California, strawberry farm to its list of ag land leases. The new, 10-year lease is scheduled to commence on August 1, 2018 and provides for fixed, annual rent escalations throughout its term.
According to a press release, Gladstone Land made the move to take over the farm following the passing of the two owners of the prior tenant. David Gladstone, President and CEO said the company decided to plant strawberries and manage operations using the experience its management team has garnered from growing the berry over the course of many years. This new lease passes on those managerial responsibilites.
“Now that the strawberry crop is nearing the end of its harvest season, we have taken the opportunity to sign a lease with a quality farmer for the next ten years,” Gladstone continued. “We don't want to be the operators of our farmland, but our broad-based experience allows us to be, when necessary. We are pleased to have a long-term lease on this farm with a strong new tenant so that our management team can get back to doing what we believe we do best, which is being the landlord and long-term farmland partner with our tenants."
Currently, Gladstone Land owns a total of 75 farms, consisting of 63,351 acres in 9 states across the U.S. The value of that land weighs in at approximately $537 million. Of those 63,000-plus acres, the majority is concentrated in locations where its tenants are able to grow fresh produce such as berries, vegetables, almonds, blueberries, and pistachios.
BENTONVILLE, AR - The convenience of online shopping but the confidence of brick and mortar—how do you bring the consumer both? Walmart seems to be en route to cracking the code, having rolled out a 3D shopping experience that allows consumers to view a life-like setting as they shop.
“Starting today, we’re testing a new experience that enables customers to take a virtual shopping tour of a curated apartment showcasing nearly 70 items from both national brands and our private label offerings. As they virtually explore the apartment, customers simply click on different products in each room to get more information,” Anthony Soohoo, SVP and Group General Manager, Home, U.S. e-commerce, wrote on the retailer’s website.
While the rollout is currently just for its new home digital shopping experience, I clicked on the sample and, wanting to see how food items might pop up, went right to the kitchen. Before me were two apples, one half sliced, and already I can see how this could span to a grocery format as well.
My hopes, and perhaps those of some in our industry, do not appear completely unfounded.
“While we are launching these new features for dorm rooms and small space living, we know that they could have applications elsewhere and will continue to listen to customer feedback to determine how to implement them more broadly on the site,” Soohoo stated.
In July, the executive said Walmart will introduce a completely new way for customers to buy an entire look quickly and easily, knowing many tend to buy certain items together. For the first time, the retailer is making it possible to add a group of items to the cart to buy a complete look, another interesting concept should it choose to broaden the program’s reach.
The announcement comes at a time when retailers are seeking technological advancements to enhance in-store and online customer experience, as Reuters observed in its coverage of the rollout. Among its recent investments in the field are Walmart’s move for a significant stake in Flipkart and the expansion of its online grocery capabilities through a partnership with DoorDash, not to mention heading up a blockchain between a number of giant companies to expedite identifying recalls and reduce food risks for consumers.
Will this tech, too, find its way into the company’s strategy to expand its e-commerce presence in the grocery sector? AndNowUKnow will alert the industry as soon as we find out.