LOS ANGELES, CA - As retailers try and stay at the forefront of consumers’ consciousness, they might realize the importance of branding as a paramount step to building up a relationship between the consumer and the produce department. Having someone associate a name with product is the key to building brand recognition when consumers are out shopping—whether they’re at a brick-and-mortar or online.
I caught up with Adam Cooper, The Wonderful Company's Vice President of Marketing, to talk about some of his branding insights and how partnering with The Wonderful Company can be a benefit to retailers.
After The Wonderful Company went through its own rebranding process three years ago, Adam explains to me that building up a brand is essentially about trust. Online or in-store, consumers want brands they recognize and it’s the reason the company continues to invest hundreds of millions of dollars in branding. As consumers begin to connect the dots between brands the importance of being vertically integrated, offering a portfolio of brands that stand for quality and aligns with Wonderful's shared mission and values as a source for “healthy snacks” is essential to success, as well as inspiring healthier choices.
“The truth is we make a huge investment to support retail sell-in that private label can’t do. From building our brand personality to better connect with shoppers, to building trust with our customer, trust with our retailers, trust with our growers, and all of our other partners,” Adam says. “We want The Wonderful Company to stand for high-quality.”
Adam and I got to chatting about the benefits of produce branding for the retailer, and how ultimately, this type of thinking benefits the consumer as well. There’s a lot more than meets the eye when it comes to produce branding, and The Wonderful Company understands the significance and weight that branding carries. It can be a huge benefit to the retailer to partner with companiesthat understand the importance of branding to the consumer.
For example, in their most recent campaign for POMWonderful, Wonderful successfully branded itself as both health-conscious and humorously entertaining. The campaign entitled, “Dolphin” features a man living with a live dolphin impaled through his chest and is aimed at increasing the conversation about health awakenings. Memorable, and sure to get people talking, it’s another way The Wonderful Company is using humor to reach a health-conscious consumer and encourage people to talk about how to become healthier after experiencing a health scare.
“Our brand doesn’t just talk about how wonderful our products are,” Adam tells me. “We make it a fun brand, one that you want to be associated with. I think that’s important, especially over time, as consumers are going to be looking for things that they recognize, and brands like ours play a role in that.”
What’s driving these decisions? According to Nielsen, 71% of total produce dollar growth is from brands. As produce as a whole has been stagnant, “private label and non-branded items are going to have a harder time building the same level of trust with consumers,” Adam tells me.
“Consumers are looking for healthier options, but they haven’t had as many choices when it comes to healthy-branded products and snacks,” Adam shares. “That’s been a need in the market so we’re excited to fill that gap and make is easier for consumers.”
As retailers prepare for the summer boom in the produce department, stick with us at AndNowUKnow for the latest in produce branding updates.
LE GRAND, CA - A brand new era is about to begin for Live Oak Farms’ pepper program. The California-based grower and shipper is not only introducing jalapeños to its offerings for the very first time, but also will be employing a new multi-million-dollar and high-tech pepper pack line.
“We’d set out to raise the bar on field bell pepper quality, and today a new era has begun for Live Oak Farms. Well over two years of planning went into the design of the new pack line, which incorporates the latest grading technology and high levels of automation,” said Ed Beckman, Chief Operations Officer.
Its no surprise that Live Oak Farms has invested substantial time and money into the new line given the company’s known commitment to quality.
“We’d benchmarked quality at over twenty bell pepper operations throughout the world,” Beckman explained. “There are elements of the most advanced Holland-based greenhouse operations found in this line, which can pack multiple types of bell peppers with a fraction of the workforce that had been required in the past.”
The new line incorporates multiple camera systems developed by pepper grading technology leader Aweta, and allows Live Oak to broaden the number of packs, including private label projects. Customers have been asking that the company expand its quality standards to a wider range of product, and Live Oak has more than answered their needs.
“We’re now positioning our colored bell production around a model of product flexibility,” said Beckman. “We’re up for the challenge of meeting the most demanding requirements. Our quality standard may begin with the quality of our peppers, but our vision of quality extends to the service we provide our customers. And that means we’re looking to grow the pepper category through innovation in packaging.”
Along with packaging, Live Oak Farms has also been committed to providing its customers with only varieties that have been tried and tested. According to a press release, the company evaluates dozens of varieties each year, with only the best advancing to its commercial production.
“Our colored bell program begins in late July and features both elongated red and blocky yellows,” stated Donna Giampaoli Vaughan, a partner and sales team member. “With the new packing line, we have greater options to meet the needs of our existing customer base and new customers. We’re excited about the possibilities and have already entertained inquiries from customers throughout the U.S. and Canada.”
After a three-year search for a premium pepper, jalapeños have now joined the Live Oaks lineup with limited volume in 2018.
“We have customers who’ve been asking for a better jalapeño, one grown in California that could be featured as part of a California-grown campaign,” said Vaughan. “We’re looking forward to growing and packing a better hot pepper to meet the demands of an ever-expanding hot pepper category.”
From the sounds of it, it doesn’t look like Live Oak Farms team will be slowing down anytime soon. For more on the company as it continues its growth, stay tuned to AndNowUKnow.
EDEN PRAIRIE, MN - SuperValu is looking out for its network of over 3,000 independent retail stores after entering into a reseller agreement with Instacart to create a new professional services offering and expand its e-commerce capabilities, including turn-key services like same-day delivery and in-store pickup.
“Consumers today want the ability to shop for food and groceries anytime and anywhere,” said Tom Kraus, Vice President of Digital at SuperValu. “Instacart allows retailers to meet consumers when and where they want to buy with delivery in as little as one hour.”
According to a press release, Instacart’s e-commerce platform requires limited capital investment, which when combined with SuperValu’s digital marketing services, will help retailers service more customers through contracted pricing, placement on Instacart.com, and marketing expertise and e-commerce support, without POS integrations or additional labor costs.
“Instacart’s success is driven by offering communities a same-day grocery delivery experience from the stores they love,” said Nilam Ganenthiran, Instacart’s Chief Business Officer. “We are proud to offer our services to SuperValu’s independent retail stores to give customers a convenient, time-saving option to get the products they have come to rely on from their beloved neighborhood brands.”
SuperValu’s latest move is in-line with its grocery-focused solutions, including consulting, websites, mobile apps, loyalty programs, and more, that are designed to boost retailers’ sales and profitability and build digital marketing and e-commerce channels.
Will SuperValu and Instacart’s partnership help differentiate their offerings in the expanding e-commerce retail arena? Stick with us at AndNowUKnow to follow along with retail developments.
FRESNO, CA - When one of the biggest retailers across the globe introduces new standards for its produce suppliers, it’s not surprising that a company might be concerned with how it will be able to meet those new standards. That was certainly the case when Walmart announced that it would be requiring both Produce Traceability Initiative (PTI) Labels and Advanced Ship Notification (ASN) information beginning mid-2017. Fortunately for many, there was a secret weapon to help ease the transition—Famous Software.
For Famous Software’s over 100 customers who trade with Walmart, complying with the retailer’s PTI and ASN requirements was as simple as accessing the Famous Integration Services (FIS) product line. Essentially, Walmart was requesting data from its suppliers in advance of receiving their shipments in an effort to expedite the process and give more visibility throughout the supply chain. Using the FIS line allows companies to electronically trade with their customers and suppliers either directly or via the iTradeNetwork, making sharing this additional information with Walmart efficient and accurate for large and small enterprises alike.
“With over 1,500 fresh produce customers we have a responsibility to be proactive and respond to industry changes. Famous Software has offered a seamless integrated EDI solution since 2001, and PTI data has been generated with the use of our ERP system for over 7 years. When Walmart required the ASN, we were already positioned to continue to provide value to our customers,” explained Natalie Kaita, Sales Manager.
As of today, Famous Software has processed over 1 million transactions between Walmart and its customer base through the use of FIS. The feedback from its customers seems to be a resounding sigh of relief, Natalie tells me. These are just a few highlights customers say make FIS products an obvious choice for their integration needs:
- Fewer Clerical Errors
- Faster Communication
- Improved Product Tracking
- Less Paperwork with Corresponding Cost Savings
- Famous to Famous
- Improved Order Tracking
- Meets Large Customers' Requirements
- Invoices Get Sent Sooner and Paid Sooner
One customer who can attest to the quality of Famous Software’s FIS program is Anthony Gallino of California Giant Berry Farms. Cal Giant was on the forefront of the Walmart ASN/PTI integration with Famous, and has long been a valued customer.
Anthony noted, “Famous FIS is a crucial part of our everyday business at California Giant. We rely on it to keep us #Poweredbyberries.”
Walmart will be continuing to implement these requirements for more and more customers based on seasonality of what each company supplies, so don’t wait to find out what changes your program needs to make. Need a hand sorting out the details? I think I may know of just the provider to help...
UNITED STATES - Tensions between China and the United States are spiking, and many growers and shippers wonder how this latest round of tariffs will affect their businesses. After last Friday’s announcement from the Trump administration to add a 25 percent tariff on $50 billion-worth of Chinese exports, China outlined its own plan to impose tariffs on U.S. goods worth $50 billion.
According to a report by CNN Money, The White House announced Monday evening that if China went through with its promise to retaliate against U.S. tariffs, the United States would impose tariffs on an additional $200 billion worth of Chinese goods.
"Further action must be taken to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship with the United States," President Trump said in a statement issued this Monday.
This conflict has many looking to a possible disruption to their global supply chain. A 15 percent retalitory tariff is already in place on fruit items, and with this second round of tariffs, fresh fruits may be subject to a 25 percent tariff if they are in addition to the first.
When the first tariff was enacted in late March, CNN Money reported that apples and cherries were most likely to be affected.
"The tit for tat brings the two sides closer to a full-blown trade war," Louis Kuijs, Head of Asian Economics at research firm Oxford Economics, wrote in a note to clients. "While there is in principle still room for negotiation, attitudes seem to be hardening."
The Trump tariffs will be enacted in two waves. More than 800 exports, about $34 billion worth, will be subject to tariffs starting July 6. Another 280 or so still need to undergo a public comment period, and will take effect later.
Trump said Monday that China's response "indicates its determination to keep the United States at a permanent and unfair disadvantage." China's tariffs would target agricultural products, cars, and seafood, among other items.
Last week it included both fruit and pork categories in the second round of tariffs to be imposed on July 6, according to Reuters, which also noted that no other products have been listed twice.
Chinese customers informed a Reuters source on Wednesday that the latest tariff would replace the earlier one, while a Shanghai-based produce company manager, who declined to be identified, said he believed the new tariffs would not be compounded on existing tariffs, and their inclusion on the latest list was a bureaucratic “oversight.”
However, he added that “the document itself is a bit vague so we can’t rule out this possibility, if the trade situation further deteriorates,” the source noted.
President Trump directed Trade Representative Robert Lighthizer to identify $200 billion worth of Chinese goods for additional 10 percent tariffs, which would be enacted if China went forward with its retalitory tariffs.
The Trump Administration also said that if China retaliates again, the United States would pursue additional tariffs on another $200 billion of goods.
"If the United States loses its senses and comes up with a new list, China will be forced to strike back hard, and launch comprehensive measures that match the U.S. move in quantity and quality," said the Chinese Commerce Ministry in a statement on Tuesday.
AndNowUKnow will keep you updated with the latest.
CINNCINATI, OH - Kroger launched its Restock Kroger initiative, dove into meal kits by acquiring Home Chef, and upped the breadth of its tech presence after partnering with Ocado this past year, which resulted in positive financial results for its first quarter of 2018. As a result, Business Insider reported Kroger's stock surged nine percent, beating Wall Street expectations.
"Restock Kroger is off to a fantastic start. Everything we do supports our customers engaging seamlessly with Kroger. Kroger is creating the future of retail by innovating our core business and adding exciting partnerships like Ocado and our planned merger with Home Chef. We are on track to generate the free cash flow and incremental FIFO operating profit that we committed to in Restock Kroger. We are confident in our ability to deliver on our plans for the year and our long-term vision to serve America through food inspiration and uplift," said Chairman and CEO Rodney McMullen.
According to a press release, highlights of the first quarter of 2018, which ended May 26, are as follows:
- Great start to Restock Kroger, including progress on cost controls due to process change and space optimization
- Sold convenience store business unit for $2.15 billion ($1.59 per diluted share)
- Our Brands achieves highest-ever retail dollar share
- Ocado partnership and Home Chef merger agreement
- Total sales increased 3.4% to $37.5 billion in the first quarter compared to $36.3 billion, a 2.3% increase, for the same period last year
- First quarter adjusted net earnings were $626 million, or $0.73 per diluted share, compared to adjusted net earnings for the first quarter 2017 were $546 million, or $0.58 per diluted share
- Net earnings of $2.0 billion, or $2.37 per diluted share, compared to net earnings for the first quarter 2017 were $303 million, or $0.32 per diluted share, which was slightly ahead of the company’s internal expectations due to the great start to Restock Kroger, including process changes that led to especially strong cost controls and alternative revenue streams
- Identical supermarket sales of 1.4% for the first quarter of 2018, which the company intends to use this calculation going forward as a more appropriate measure to track Kroger’s performance as it redefines the grocery customer experience
In addition, Kroger raised the low end of its net earnings guidance range to $3.64 to $3.79 per diluted share for 2018, previously $3.59 to $3.79, as well as raised the low end of its adjusted net earnings guidance range to $2.00 to $2.15 per diluted share for 2018, from $1.95 to $2.15 previously.
To read the financial report in its entirety, click here.
Among its recent strategic changes, Kroger also made produce suppliers aware of updates to supply payment policies. As this story continues to develop, keep an eye on AndNowUKnow for the latest.
NEWARK, DE - Center for Growing Talent (CGT) Executive Director and PMA Senior Vice President Margi Prueitt has announced her plans to retire from the organization, effective February of 2019. The executive made her announcement at the recent Center for Growing Talent (CGT) Board of Directors meeting in Seattle, Washington.
“None of the accomplishments of the past eight years would have been possible without the insight and commitment of the best board leaders an organization could hope for,” said Prueitt, according to a press release. “We also had the wholehearted support of PMA leaders Bryan Silbermann and Cathy Burns, and the PMA staff team. The accelerator of this incredible engine has been the energy and grit of the CGT staff, who are unparalleled in their commitment to our mission and our industry.”
According to that press release, over the past eight years, Prueitt grew the CGT into the robust organization that it is—working to provide tailored solutions to attract, develop, and retain the talent that both the fresh produce and floral communities need to grow.
“As a former search executive, I cannot stress enough how important this organization and its mission have become to the future of our industry. Under Margi’s leadership, Center for Growing Talent has grown and matured into the vital organization that it is today, and set us on a path for a strong future. Thank you, Margi, for your many contributions to our industry,” said CGT Board of Directors Chair Leonard Batti, Vice President at Taylor Farms.
Among Prueitt’s notable accomplishments, the organization listed:
- Global expansion of the Career Pathways program, which attracts top university students to consider careers in fresh produce and floral. To date, 67 percent of the 1,000+ students who have participated in Career Pathways programs took a job or internship in the industry; 78 percent remain in the industry today
- The launch of the CGT Immersion Academy, which prepares university seniors to immediately begin careers in the industry. Seventy percent of the inaugural Immersion Academy class took jobs in the industry
- Creation of a career continuum suite of programs for senior executives to mid-level managers to emerging leaders to young professionals. To date, 5,430 people from nearly 600 industry companies have taken advantage of CGT’s leadership development offerings
- Global expansion of the Women’s Fresh Perspectives portfolio, which has grown to include an annual conference, a leadership breakfast, and networking receptions throughout the year
- Creation of both a mentor-mentee matching program (with more than 350 participants) and an internship toolkit designed to help industry employers to create programs to attract potential employees
“Margi has brought her vision and expertise not just to Center for Growing Talent, but also to PMA’s senior management team,” added PMA CEO Cathy Burns. “We thank her for her dedicated, tireless service to the global fresh produce and floral communities and wish her and her husband Ned well in their much-deserved retirement.”
In addition to the accomplishments listed above, the association noted that HRVest, CGT’s newest endeavor and its first offering to help the industry retain talent, was Prueitt’s creation; the groundbreaking tool designed by the HR transformation experts at PricewaterhouseCoopers will help industry companies assess and benchmark their HR capabilities to help them approach HR more strategically.
The association is currently searching for a successor to Pruiett, with Burns and Batti leading a search committee that includes CGT Board Chair-Elect Marty Craner, President of B&C Fresh Sales, and CGT Board Director Chris Cervini, President of Lakeside Produce.
Congratulations, from all of us at ANUK, to Margi on a groundbreaking career. We wish you the best in all your future endeavors.
DINUBA, CA - King Fresh Produce is happily welcoming upgraded machinery to its grower’s, Katicich Ranch's, packinghouse, where the third-generation cherry farmers will utilize photo optic sorting equipment to stay up-to-date with what buyers are wanting most—the freshest produce. To increase volume for the 2019 season, the packinghouse is introducing updated machinery that has been designed especially by Red Pearl Systems and SMI.
Partnering up to grow Katicich’s Bing cherry variety, Keith Wilson, President for King Fresh, shares on what these upgrades entail and how it will benefit the company’s overall production.
“The Katicich family has been investing in upgrades to their packinghouse and cold storage on a yearly basis over the past 30 years. With proven photo optic sorting equipment on the market and buyers demanding fruit ran on photo optic equipment, a major remodel was in order to stay at the top of the game in the marketplace,” Keith explains. “Red Pearl Systems from Union Gap, Washington, and electrical and automation company SMI, from Stockton, California, came together to create a packing line that fits the needs of the existing on-site building.”
This is the second year that Katicich Ranch and King Fresh have teamed up for cherry season, with the latter helping the former with field harvest supervision and marketing of its Bing cherries. Family friends for many years, the two companies are excited for the machinery, as it promises growth in volume to optimize the close proximity of the facilities.
“This upgrade will increase the efficiency of our pack line by over 50 percent when compared with the previous equipment,” Keith tells me. “Our cherry quality and sizing is excellent this year due to a mild spring and a lighter-than-normal crop. We also have the advantage that all of our acreage is grown within four miles of our packinghouse. We can harvest, precool, and pack cherries within two hours of when the fruit left the orchard. You can’t get any fresher than that.”
More fresh and crisp cherries fresh off the tree? That sounds like the perfectly refreshing remedy for the weight of summertime heat.
WASHINGTON, DC - United Fresh attendees, hold onto your hats—U.S. Secretary of Agriculture Sonny Perdue will not only be attending this year’s show in Chicago, but will also be the opening keynote speaker on Tuesday, June 26.
“We’re honored that Secretary Perdue will join us in Chicago,” said Tom Stenzel, United Fresh President and CEO. “He’s a proven leader for agriculture, helping the Administration and Congress both to understand the importance of feeding the world. A task that requires a secure U.S. workforce, and a global trade system that supports both producers and consumers.”
As keynote speaker, Secretary Perdue will address issues the industry is currently facing, like immigration reform and the need for a legal workforce, and NAFTA and the need to retain a fair international trade framework for agriculture.
“The fruit and vegetable industry is highly dependent on our workforce in order to sustain and grow our industry to meet increasing demand for fresh fruits and vegetables. Likewise, our ability to trade around the globe in an open and equal import/export environment allows our businesses to grow beyond our nation’s borders in order to better serve U.S. consumers,” United Fresh noted in a press release.
From 8 a.m. to 10 a.m., Secretary Perdue will take the stage at the United Fresh 2018 Keynote Breakfast at the McCormick Place Convention Center, which requires a United Fresh All Access Package to attend. Don't miss out!
This year’s attendees will also be the first to lay eyes on the SmartFood Expo™, a co-locate with the Global Cold Chain Expo and the International Floriculture Epo that focuses on fresh, healthy foods.
If you have not yet registered or would like to learn more about this year’s exciting event, visit www.unitedfreshshow.org.
For more upcoming produce events that should be on your calendar, stick with us at AndNowUKnow.
LEAMINGTON, ON - New packages, new products, and recent accolades are just some of the fuel feeding growth for Pure Flavor®. Greenhouse vegetable production is in full swing in every region of North America to meet surging summertime demand, and the team’s family of growers are producing more than ever.
“We have a very positive momentum in the marketplace and are gaining more steam season-over-season. Coupled with our brand refresh, increased acreage and product offering, expansion to Georgia, and now receiving Greenhouse Awards for Best Overall Cucumber, Best Cocktail Cucumber, and Best Beefsteak Tomato Grower, it’s been a busy year for us, and we are only in June!” said company President Jamie Moracci.
With increased acreage and demand for more products, Pure Flavor announced it will be launching two new items at the United Fresh Trade Show and Convention: a Fresh Salsa Kit and a Fresh Guacamole Kit.
“The Fresh Salsa Kit and Fresh Guacamole Kit were created in formats that are convenient for both retail and club stores, the kits touch on everything fresh for the DIY enthusiast,” stated Matt Mastronardi, Executive Vice-President. “Consumers want to spend more quality family time together creating flavorful meals. Fresh-focused meal solutions like the Salsa and Guacamoles Kits are fast, easy, and fun! The beauty of these kits is that you can customize them as you see fit to add in your own flavors."
Pure Flavor will be showcasing these items, including its very popular and kid-friendly Mini Munchie Snack Sized Veggie Program, in the Featured Product Showcases at the trade show. The company noted attendees will be treated to even more, as it will also be rolling out new Top Seal packaging for its complete line of snacking tomatoes.
As a vertically-integrated grower/marketer, Pure Flavor’s year-round programs are supported by a family of growers across many regions to ensure consistency in supply, according to a press release.
“Our Georgia greenhouse project is moving along swiftly, with the first phase of 25 acres scheduled to be completed late this summer," said Moracci. “By growing year-round in the southeast, it will allow us to reduce food miles to our customers while consumers get to enjoy fresher product on the shelves.”
The company announced in late 2017 that the expansion to Fort Valley, GA, would be a three-phased approach, with a total of 75 acres of high-tech greenhouses being built over a five-year period.
All this, in turn, is setting up opportunities to connect with retail and foodservice partners at the United Fresh Trade Show and Convention in Chicago, June 26-27. Learn more and see all that is new and fresh with the Pure Flavor team by visiting booth #819.