ATLANTA, GA - Publix is bringing its Sunshine State-based GreenWise Markets to Georgia with its latest plans for expansion. Organic, natural, and specialty foods store—headquartered in Lakeland, Florida—is looking at sites in the Peach State, according to Atlanta Business Chronicle, with plans to unveil three to five stores in the metro Atlanta area. In addition to Atlanta locations, the company has three stores in the works—Tallahassee and Lakeland, Florida, and Mount Pleasant, South Carolina.
This will be a major move for the retail chain, which currently operates three locations of its niche store format and hasn’t opened a new GreenWise Markets location since 2008—all three can be found in Florida.
While yet to be confirmed by the company, the news source relays that one of the first store locations would be at East Cobb, a new project set for Sandy Plains and Shallowford roads that Atlanta-based Fuqua Development is spearheading. GreenWise could potentially take the space that Mountain View Elementary School formerly held. Other than this first spot, parent company Publix is looking at other Atlanta locations for its GreenWise Markets, where it could compete with Whole Foods Market and Sprouts Farmers Market.
“Publix launching GreenWise in Atlanta could be a game changer,” Executive Vice President of Retail for Commercial Real Estate firm JLL John Bemis said, according to the news source. “They seem to have a good handle on the concept. And, their launch should be smoother because it comes with the Publix name recognition.”
In a unique strategy, GreenWise would be positioned a little south of a Publix at the potential East Cobb location. The market’s footprint will be around 25,000 square feet, while the average for parent Publix is almost double that at 44,000 square feet.
“The target market for GreenWise is those areas that have a strong Publix presence already,” Senior Director of Retail Tenant Services for Franklin Street Real Estate's Atlanta location's Greg Eisenman said. “GreenWise could function as a complementary destination for a core Publix location, helping to spread out customer density in their busiest markets.”
The news source relays that Publix announced a relaunch of GreenWise in March of last year, which would consist of different merchandise than Publix holds and a wine bar with prepared foods.
“We think foodies and health-conscious customers alike will love what the store will offer,” Publix’s Senior Vice President of Retail Operations Kevin Murphy said last March.
The Southeast could see up to 100 GreenWise stores, with plans for more expansion in the works, the news source expresses.
“We don’t really know what will happen in the grocery industry a year or five years from now. Change in the grocery business, as part of retail all together, due to technology and changing consumer patterns is happening so quickly,” Eisenman said. “I’m excited to see a big company like Publix believe in the market enough to make this significant investment.”
How will a GreenWise Markets expansion shape the retail landscape in the Southeast and beyond? AndNowUKnow will keep you updated.
NEW YORK CITY, NY - The culinary community and beyond are mourning the loss of Anthony Bourdain, celebrated chef, author, and television personality of shows like Parts Unknown, The Layover, and Anthony Bourdain: No Reservations, who was found dead this morning, June 8. He was 61 years old.
"It is with extraordinary sadness we can confirm the death of our friend and colleague, Anthony Bourdain," CNN said in a statement today. "His love of great adventure, new friends, fine food, and drink and the remarkable stories of the world made him a unique storyteller. His talents never ceased to amaze us and we will miss him very much. Our thoughts and prayers are with his daughter and family at this incredibly difficult time."
He has been celebrated as “the original rock star chef” that broke the mold for many, as well as having opened up a world of food and culture to millions through his touring reality TV shows and documentaries. His 2001 memoir Kitchen Confidential: Adventures in the Culinary Underbelly was translated into 15 languages, according to the Washington Post, and transformed him into a household name and public figure.
The older of two sons, Bourdain was born in New York City on June 25, 1956, and grew up in Leonia, NJ. His father was a Columbia Records executive, and his mother was an editor at the New York Times.
According to the Post, his first memory of a life-altering meal was a summer trip to France, his father’s birthplace, where he was startled to find more than hamburgers and peanut butter and jelly sandwiches on the menu.
He grew to specialize in French cuisine with an overall eclectic style, having graduated from the Culinary Institute of America in 1978 and working in some of New York's finest restaurants.
Anthony Bourdain also actively represented issues in the food industry and beyond, having introduced the documentary Wasted! The Story of Food Waste last year and writing a number of best-selling pieces exposing abusive behavior in professional, even elite, kitchens.
He is survived by a daughter, loved ones, and many he left inspired.
AndNowUKnow gives our deepest condolences to all affected by this loss. His voice will be missed.
BAKERSFIELD, CA - June is the month of graduations and graduation parties, as high school students prepare for their next chapter in life. 55 recent high school graduates had even more of a reason to celebrate, as Grimmway Farms announced it awarded these students with college scholarships as part of its annual Rod and Bob Grimm Memorial Scholarship Program. The program is a company-wide initiative designed to reward superior academic performance; all applicants must have a parent or guardian employed by Grimmway Farms.
“Grimmway has a long history of giving back to our communities and one focus that is very special to us is education,” said Jeff Huckaby, President, in a company press release. “Many of these students will be first-generation college graduates and we’re proud to help them achieve their dreams. By investing in them, we are investing in the future success of our company, our industry and the communities we serve.”
The Rod and Bob Grimm Scholarship Program was named for the company’s founders and has awarded more than 600 scholarships, totaling more than $1.65 million to high school seniors since it was created in 1997. The scholarships, which are renewable for four years, are based on academic achievement and provide financial support for students attending two- and four-year colleges and universities. This year’s recipients will attend a variety of top-ranked schools, including UC Davis, UC San Diego, UC Irvine, Cal Poly San Luis Obispo, Roanoke College, and the United States Naval Academy.
For the latest in how the produce industry invests in the community, stay tuned to AndNowUKnow.
HERMOSILLO, SO, MX - Mexican officials uncovered more than mere mangos when army officers at a checkpoint pulled a tractor-trailer over for inspection this Wednesday.
Hidden among a shipment of 27 tons of mangos, the military found approximately 550 pounds of crystal methamphetamine, opium, marijuana, cocaine, and heroine—valued by la Secretaría de la Defensa Nacional (Sedena) at roughly $11 million USD.
According to a Sedena press release reported on by local news source Excelsior, soldiers detected the contraband cargo by x-raying the truck and its contents—carbon paper and plastic mango shippers full of the fruit. The seizure took place a the “Querobabi” Strategic Military Post in Opodepe, Sonora, along a stretch of Federal Highway Mexico 15 between Hermosillo and Santa Anna.
In total, the shipment included more than 380 pounds of methamphetamine, 95 pounds of cocaine, 9 pounds of heroin, 50 pounds of opium gum, and nearly 10 pounds of fentanyl.
Soldiers arrested the driver of the trailer who is currently in the custody of Mexico’s Agente del Ministerio Público Federal who are pursuing ongoing investigations.
For more on the bitter fruit buried beneath our sweet produce industry’s exterior, keep reading AndNowUKnow.
MEXICO - The 2018 East Pacific hurricane season is upon us, AccuWeather meterologists report. Considered to be the first tropical storm of 2018, Aletta developed south of Mexico on Wednesday morning and began as a tropical depression south of Mexico on Tuesday night.
"Aletta should become a hurricane later today or Friday," said AccuWeather Hurricane Expert Dan Kottlowski.
Aletta is expected to strengthen into the weekend, as the tropical systems tracks west-northwest, south of the Mexico coastline. According to AccuWeather, the forecasted track of Aletta will keep the worst conditions offshore, limiting potential damage on land.
Damaging winds and widespread flash flooding are not expected. However, widespread showers and thunderstorms are expected to occur from Oaxaca to Jalisco through Friday. AccuWeather warned that some localized events of flash flooding could be possible, but most locations should expect only an uptick in rainfall.
While there is no imminent risk for the produce industry, avocado, blueberry, and mango growers may see some rain and flooding in their growing regions.
AccuWeather reported that a second tropical threat is expected to develop south of southern Mexico this weekend or early next week. There will be a higher risk for direct impacts from this potential tropical system as it tracks closer to the Mexico coastline.
AndNowUKnow will continue to follow these storms as they develop and their potential impacts on fresh produce, so stay tuned.
SANTA PAULA, CA - Calavo Growers’ business is seeing nothin’ but net these days. Beyond the basketball metaphor, the global avocado provider reported net income and earnings per share for its fiscal 2018 second quarter and initial six months—from the looks of it, the company is quick on its feet and alive on the court.
“Calavo completed a solidly profitable second quarter, making notable advancements across our three principal business segments. This progress included strong avocado volume growth in our Fresh segment and higher revenues, gross profit and gross profit margins in both our Renaissance Food Group (RFG) and Calavo Foods segments,” Chairman, President and Chief Executive Officer Lee E. Cole. “The Fresh business experienced double-digit growth in avocado unit volume. Avocado market pricing remained near historic norms in the most-recent quarter versus last year, when the industry experienced a rapid increase toward historically high market pricing in the second quarter of 2017. Despite this year’s higher volume, the combined result was lower year-over-year avocado sales. Calavo’s Fresh segment gross profit remained strong in the second quarter, above historic norms, albeit lower than last year when the industry experienced extraordinary market dynamics in which consumer demand dramatically exceeded available supply.”
In the results, the company reported a net income totaling $14.1 million, which equals out to $0.80 per diluted share—a nine percent increase from last year’s second quarter, $12.9 million or $0.74 per diluted share.
Additional second quarter highlights included:
- Diluted EPS Rises to 80 Cents from 74 cents in fiscal 2017, second Period
- Double-digit volume increase in fresh avocado units sold
- Renaissance Food Group gross profit advances 36% year-over-year
- Calavo Foods segment revenues and gross profit climb 30-plus%
Net income for the six months ending on April 30, 2018, jumped 17% to $21.3 million, or $1.21 per diluted share. This is a big spike from last year’s first half, which reported $18.2 million or $1.04 per diluted share.
According to a press release, the number of fresh units sold in the most recent quarter comes out to 4.7 million, not too far off the 4.8 million during the year prior.&
In the RFG business segment, sales rose 7% to $104.6 million from $97.7 million in the same quarter last year. Gross profit climbed more than 35 percent to $9.3 million, or 8.9 percent of segment sales, from $6.9 million, or 7.0 percent of segment sales in last year’s corresponding quarter. Delays in certain new programs and an industry-wide food safety concern over romaine lettuce constrained RFG’s revenue growth this past quarter. However, manufacturing efficiencies across the segment’s production footprint, as well as favorable raw material costs, drove the considerable increase in year-over-year gross profit.
Moving forward, the company has high hopes for the rest of this year and beyond.
The team noted looking forward in fiscal 2018:
- Approximately 20% growth in avocado-industry volumes
- Double-digit revenue and gross profit growth for RFG
- Double-digit revenue and gross profit growth in Calavo Foods
Cole expressed hopes for continued growth and record-making revenues to create a double-digit increase in earnings per share for the full year.
“Overall fresh avocado demand and consumption continues to trend upward, and the larger all-source supply for this year–as much as 20 percent above last year–bodes well for our company as a category leader. During the second half of the year, we expect to source from multiple geographic regions, including California, Mexico, Peru and Colombia, and anticipate continued year-over-year, double-digit volume increases in avocado units sold. While unit volumes are expected to remain strong, last year’s second half was marked by unprecedented avocado market dynamics which may skew year-over-year avocado comparisons throughout the remainder of the year,” Cole shared, adding that the team is on a path to register high-teen revenue growth and gross profit margin, in line with historic levels during this year’s third and fourth quarters.
To read the full report, click here.
For more fresh produce news, stick with us at AndNowUKnow.
BELLEVUE, WA - This week, Arable Capital Partners announced the acquisition of Farmington Fresh Cuts, a Stockton, California-based processor of fresh sliced apples, oranges, pears, and other packaged fruits.
“We are excited to build on our investment in the value-added fruit and vegetable category. This merger allows both companies to continue their high level of service for their existing customers and to develop new customers on a regional and national level,” said Derek Yurosek, Managing Director of Arable Capital Partners.
As part of the acquisition, Farmington will merge with Arable’s portfolio company, Fresh Innovations, as a means to bolster its presence in the fresh sliced fruit category.
“The addition of Farmington will help us accelerate our growth plans for Fresh Innovations. We have a lot of confidence in the Fresh Innovations management team that will be running the combined companies,” said Greg Richards, Managing Director of Arable Capital Partners.
According to a press release, Farmington, an important member in the value-added fresh fruit category in Central Valley, California, since 1995, has a long-standing customer base in California that stretches across the school, foodservice, and retail segments. In addition, the company’s strategic location next to the Stockton Metropolitan Airport and nearby highways gives it unparalleled access to both its suppliers and customers.
“The acquisition of Farmington is consistent with our objective to continue expanding our national presence and enhancing the value proposition of our current and future product offerings,” said President of Fresh Innovations Toby Cohen. “My management team has identified numerous ways to translate the Fresh Innovation’s best practices into the Farmington business. This acquisition is going to give us much needed capacity to help accelerate our growth objectives.”
For more of the latest produce acquisitions in our industry, keep reading AndNowUKnow.
DELTA, BRITISH COLUMBIA - There are more ways than one to farm organic crops, but Oppy and Origin Organic Farms are bolstering greenhouse growing as a means to stay on top of high-demand products and year-round availability. And, with health—both the environment’s and consumers’—leading the grocery shopping charge these days, Oppy and Origin Organic Farms are tweaking the organic growing process in order to deliver the value and quality consumers have come to expect from the OriginO brand.
I chat with Raymond Wong, President of Origin Organic Farms, and Chris Ford, Organic Category Manager for Oppy, to learn more about what makes its evolving organic operations a stand-out in greenhouse growing.
“Oppy’s organic strategy centers on quality, assortment, and consistency for high-demand products, and OriginO fits perfectly into our strategy: it’s in demand, high quality, and produced by someone who shares our values around sustainability. We have established year-round availability by growing key items in strategic geographic areas and have a high level of confidence in our organic program,” Chris tells me. “OriginO was one of the first large-scale organic brands we ever offered, and we’ve invested in its success over the years. Alongside Raymond, whose expertise in this sphere is unparalleled, we’ve nurtured the brand to become a customer favorite.”
A Canadian pioneer in growing organics in greenhouses, Raymond first started with a small trial in 2005 alongside conventional produce before converting to solely organics in 2007. He now grows and ships long English cucumbers, tomatoes-on-the-vine, and colored bell peppers in Delta, British Columbia, and has a sustainable growing concept that uniquely produces in soil rather than hydroponically like other organic greenhouse growers.
“Raymond is a true organic pioneer, and he’s always learning, refining, and perfecting. As a result, OriginO is a brand that you can count on for quality and flavor,” Chris continues. “We do our best to represent a cohesive program on the shelf, between our signature organic brands and Oppy branded organic items.”
Raymond explains that growing organics in a greenhouse is very different from conventional greenhouse growing as conventionally hydroponic greenhouse systems are more predictable, adjustable, and optimizable in terms of chemical fertilizers and soil nutrients. Thus, Raymond developed an organic greenhouse system, which includes slow-release organic fertilizers that must be processed by the microbes in the soil before the plants can uptake the nutrients. This system, while slower, is just as effective at ensuring intensive growing is accomplished.
“After more than 10 years of research, we have come to realize that with organics, it is all about the balance. Still, we are always fine-tuning our growing processes in order to achieve better quality and yield,” Raymond shares with me. “As a result, we have developed a mini ecosystem to diversify and provide balance to the crops. With fertigation, we introduced a concept to feed the soil media instead of the crop, which includes top dressing solid organic fertilizers onto the soil in order to let the microbes break down the fertilizers, so plants can uptake the nutrients. We also rely on natural methods to control pests, including natural predator insects introduced in the right way to the create a balanced ecosystem.”
Constantly rolling with the punches, Raymond also notes that this season has been about fine-tuning the process and expanding its acreage to meet rising demand. Specifically, Raymond reveals that Origin Organic Farms is trying to grow its organic cucumbers on a high wire system.
“Thus far, the results have been promising and we are getting less culls. We are starting to do more research on doing our own propagation, while keeping in mind our main goal, which is get a better-quality crop,” Raymond says. “Also, the season is underway and going well. Last year, we saw a lot of demand for organic cucumbers and peppers, and in response increased our acreage of both this season.”
Look to offer Origin Organic Farms’ English cucumbers, colored bell peppers, and tomatoes-on-the-vine in your produce aisle today. For more of the latest innovation happening around our industry, keep reading AndNowUKnow.
PHOENIX, AZ - Sprouts Farmers Market CEO Amin Maredia sat down last week to discuss the rapidly growing fresh-food retailer’s business model and the way in which a focus on fresh, natural, and organic groceries has seen the company reap rewards at a time when center-store giants are struggling.
“Sprouts is different because we were born with fresh, natural, and organic in everything that we do,” Maredia explained. “We don’t have the center store, CPG products in our stores. So really for the last 15 years, since our founding, we have been focused on fresh, natural and organic food.”
Maredia sat for an interview with CNBC Squawk Box anchor Becky Quick, who asked the executive about the Sprouts model and its relationship to changing consumer preferences.
“You know, I think consumers are changing in two ways: in what they are eating and how they are eating,” noted Maredia. “And with the ‘what,’ consumers are eating more fresh, natural, and organic food. 30 years ago that was a $20 or $30 million dollar business, and today it’s an over-$200 billion dollar business. So it’s becoming more mainstream.”
Quick asked Maredia about increased direct competition from fresh-focused retailers and home delivery companies like Fresh Direct and Amazon and Whole Foods.
“As a company we’ve just continued to really understand the customer and evolve with the preferences,” he explained. “Over the last decade… We’ve continued to evolve our store in the fresh, natural deli departments, private label—really focusing on trends. And what that has allowed us to do over the last decade is to take our average store sales from $12 million a year to $18 million a year, and we aren’t done yet…it’s all about understanding the types of food the types of preferences—how consumers want to eat.”
Maredia also outlined changing consumer preferences in terms of in-store meal kits and delivery options, as well as addressing price pressure and shrinking margins in the grocery industry.
“What’s interesting is the mix has changed, but if you look over the past five years our merchandise margins have remained relatively consistent,” added Maredia. “Some department and categories in the store have lower margins but we have added fresh foods in other departments and private label in other areas with higher margins to offset that.”
For more, watch Maredia’s interview in its entirety, here.
ISSAQUAH, WA - While retail continues to combat on offering competitive wages for employees and prices for shoppers, Costco is boosting its hourly minimum next week by $1, to either $14 or $14.50, depending on the state. The jump applies to all U.S. hourly workers, a force of about 130,000.
Executives said the company was using some of its savings from last year’s U.S. tax overhaul to invest in its workforce, according to a report from The Wall Street Journal, which cited a lower corporate tax rate for companies like Costco with large U.S. operations.
The new wages take effect on June 11 and will nearly double the federal minimum wage of $7.25.
As we recently reported, the retailer saw an increase in both net sales and net income for its third quarter of the fiscal year, and Chief Financial Officer Richard Galanti estimated the annual cost of the wage increases will be between $110 million and $120 million pretax, according to the news source.
The company expects an effective tax rate of 28% this fiscal year, however, compared to about 35% last year, he said.
Will the move be echoed by other retailers as price and wage wars alike continue to wage? AndNowUKnow will report on the latest.