GOODLETTSVILLE, TN - Dollar General has released its first quarter 2018 financial results, reporting positive sales growth and reaffirming its 2018 guidance despite trying condition.
"Our team delivered strong net sales growth, a solid same-store sales increase, and gross margin expansion, while continuing to execute our cost containment strategy," said Todd Vasos, Dollar General's Chief Executive Officer. "We are proud of our execution and solid performance, particularly given the significant weather-related headwind we faced during the first quarter. We are pleased with the start of the second quarter, and based on our year-to-date performance and outlook for the remainder of 2018, we are reiterating our full-year guidance. We offer a unique value and convenience proposition that continues to resonate with customers, and we are excited about the initiatives we have in place."
According to a press release, the following statistics detail its financial results:
- Diluted Earnings Per Share ("EPS") increased 33.3% to $1.36
- Cash Flows from operations increased 7.5% to $549 million
- $228 Million returned to shareholders through share repurchases and cash dividends
- Company reiterates Fiscal Year 2018 Financial Guidance
- Board of Directors Declares Second Quarter 2018 Cash Dividend of $0.29 per share
- When looking to the future, the company projects that the 52-week fiscal year ending on February 1st of 2019 will show growth, as discussed in its previous store outlook issued on March 15th.
The company’s net sales rose 9 percent to $6.1 billion, due to new stores’ sales contributions. This was moderately impacted by store closures, but the store saw an overall spike. Further, the company’s same-store sales jumped 2.1 percent, which the company expresses were due to higher averages on transactions. The growth in same-store sales was a result of large sales of consumables, which were offset by apparel, seasonal, and home categories.
The cold and damp weather on certain product categories also negatively impacted same-store sales for this first quarter; nevertheless, the company's net sales increased.
While the company's report was generally positive, Reuters and several other news sources have reported that the discount retailer narrowly missed analyst's estimates for the quarter.
Dollar General expects that its 2018 fiscal year will ultimately lead to an unchanged operating margin rate when compared with 2017’s. It also expects that its 2018 diluted EPS will land between $5.95 and $6.15, and its diluted EPS guidance will likely assume an estimated effective tax rate between 22 and 23 percent. In addition to these stats, the company expects a cash benefit of about $300 million for fiscal 2018, as a result of TCJA, according to the press release.
To top off these expectations, Dollar General has its mind set on opening 900 new stores, remodeling 1,000 stores, and relocating 100 stores within this 2018 fiscal year.
For more details on the company’s fiscal results, check out the full press release here.
For more fresh produce news, check back with us at AndNowUKnow.
NEW YORK, NY - D’Arrigo New York’s operations have helped the company become an Empire State staple, with a business culture and traditions that allow them to excel. This year, the practices are getting a recharge with a series of renovations and rebrands, not to mention a whole new side of business that will take its operations to the next level.
I was able to get the inside scoop from Gabriela D’Arrigo, Vice President of Marketing and Communications for the company, and she enlightened me to all of the changes that lie ahead.
“Last January, we purchased what was formally the John Georgallas Banana Distributors of New York, which is a company that is right outside the Hunts Point Terminal Market and across the street. The company has been an institution for bananas for a very long time—and we have become friends with the owners over the years. In the last couple years, the two companies saw some opportunities and synergies that could really work well. We’re always looking for ways to diversify our revenue stream and our business. We thought, ‘Why not?’” Gabriela explains.
Since purchasing the facility in January, D’Arrigo has been gutting and renovating the space. While the facility is going through this transformation, more big changes are on the horizon—the facility is under renovation, with different segments making it through stages. There are currently 13 ripening rooms to provide space on-site for both organic and conventional bananas. In addition to the ripening rooms for the bananas, there are two for plantains.
This purchase has really prepped the company for more successes. They jumped into the deep end, Gabriela jokes, but with a calm that assures me that this move is a natural fit for the company. Kevin D’Arrigo, Vice President of Operations, is captain of the banana ship, and Gabriela tells me that he is steering the new operations successfully and with ease.
“Kevin really has a knack for it. We now are able to accelerate the growth of our tropical department that we started a few years back because of the success we are seeing with this new venture. Because it’s outside of the market, we have a little bit of freedom as far as what we can sell in and out of there. In the Hunts Point Terminal Market’s cooperative, you can only sell fresh fruits and vegetables,” she shares. “At that facility, since we are a little bit outside of it, if we wanted to sell teas or juices or packets, we have the freedom to do so there. We also have the ability to be open seven days a week, 24 hours a day. That has changed a lot of our business, and has enabled us to compete with other markets that have those capabilities.”
The new purchase resides right outside of Hunts Point Produce Market, inside of which D’Arrigo Wholesale sits. There is much to be done throughout the process of onboarding the banana operations and creating a new life for the company’s image.
“We’ve also been doing construction here on our stalls on the wholesale side. We’ve been doing that in phases, as well—starting with our fruit department and moving toward our other departments—giving our company a much-needed facelift,” Gabriela says.
D’Arrigo is both revamping its currently occupied locations and giving the new facility an exciting boost. To tie all of the happenings together, Gabriela teases that a rebrand for the banana facility is in the works.
“These renovations give us an additional 25,000- to 30,000-square-feet, which in Hunts Point, which is like gold,” she laughs. “We will be done by the beginning of June. The final stage of the construction will be coming up this fall—when we will debut all new sales booths. With this construction happening, we want to become more efficient and up-to-date with the times. Now we need to build for the next generation.”
Once all of the construction is done, the next stop in the company’s pursuit of furthering its growth, Gabriela explains.
“While we have been waiting for the city of New York to invest in the needs of the market, we have decided to invest in ourselves at this this point. With that construction and facelift, we have also started a rebrand for the D’Arrigo New York brand. We’ll have the unveiling in the coming months. The same family, just new generation attitude coming up with the rebrand,” she shares with me. “It’s making it relevant to today and continuing to make sure that it is relevant for the next 10 years and more. We’ll probably do it all over again.”
The fearless and aspirational leader shows that there is nothing this brand can’t take on, and her remarks make me wonder what successes the company will enjoy with these ventures as it reaches new heights—and new categories.
KYODO, JP - A set of Yubari melons—a variety of cantaloupe—were sold to winning bidder Shinya Noda, President of Hokuyu Pack, a fruit and vegetable packing company, for a mind-bending $29,000 (3.2 million yen) at a Sapporo wholesale market in Japan.
According to Mainichi News, these melons—which were purchased in the first auction of this harvest season—went for more than the previous record-holding pair, which sold for 3 million yen in 2016.
“I wanted to make a record-setting bid by all means,” said Shinya Noda.
Mainichi reported that the luxury fruit would be on display until the month’s end. After that, the melons will be sliced up and given to Noda’s customers, free of charge.
For the latest in record-breaking fruit purchases, keep following AndNowUKnow.
LOS ALAMITOS, CA - Just about everyone knows that summertime in the Los Angeles area provides parties not to be missed. Plant Power: The No Beast Feast took center stage on May 19th, when over 250 foodies showed up to the LA Food Bowl event at Border Grill in Downtown Los Angeles.
Frieda’s stepped up to the plate to donate all fruits and vegetables used in food and beverages served at the event, as well as a produce and floral wall where attendees could gather round for a beautiful backdrop for the picture-perfect moment.
“What you see on the plates at this event represents the best of Frieda’s. We have been inspiring chefs and home cooks for over 50 years, focusing on new varieties of products with superb flavor like that of Stokes Purple® sweet potatoes. It’s amazing to see our produce so deliciously and gorgeously on the center of the plate,” Assistant Sales Manager Alex Jackson Berkley said, according to a press release.
Chefs Susan Feniger and Mary Sue Milliken of Border Grill hosted the event, which highlighted vegetable-forward cuisines of international nature and from prominent female chefs.
“Frieda’s is always a step ahead,” Milliken tweeted. “I’m inspired!”
Proceeds from the fun event went to Girls Inc. and the James Beard Foundation women’s leadership programs, supporting young girls’ advancement and women in the hospitality industry’s empowerment.
“Fresh ingredients are very important to Thai cooking, and what Frieda’s provided to us were some of the best-looking produce I’ve seen in a long time,” said Jazz Singsanong, Chef and Owner of Jitlada, a Los Angeles-based Thai restaurant. “We put a lot of love into our food, and it looks like Frieda’s puts a lot of love in their products and services as well. It was a pleasure to work with the Frieda’s team.”
In addition to Milliken, Feniger, and Singsanong, other chefs include the following:
- Nadine Redzepi (Noma)
- Monique Fiso of New Zealand (Hiakai)
- Akasha Richmond (Akasha)
- Antonia Lofaso (Scopa Italian Roots)
- April Bloomfield (The Hearth & Hound)
- Brooke Williamson (Playa Provisions)
- Dahlia Narvaez (Mozza)
- Dakota Weiss (Sweetfin Poké)
- Niki Nakayama (n/naka)
- Nina Curtis
- Nyesha Arrington (Native Santa Monica)
- Roxana Jullapat (Friends & Family)
- Sara Kramer and Sarah Hymanson (Kismet)
- Sherry Yard (iPic Theaters)
- Shirley Chung (Ms. Chi)
- Tanya Holland (Brown Sugar Kitchen)
- Valerie Gordon (Valerie Confections)
For more fresh produce news on how our industry professionals are shaping our world, check back with us at AndNowUKnow.
IRVINE, CA - Year after year, June means the sweet spot for promotable California avocado volumes is here, and 2018 will see no exception. Welcome to “California Avocado Month,” as June has been dubbed by the California Avocado Commission (CAC) since 2012. This year’s California Avocado Month is carrying on the tradition, celebrating the fruit with a full slate of marketing activities, including a partnership with online meal kit delivery service Chef’d.
“Many retailers already have plans in place for exciting California Avocado Month promotions, including programs with special displays, demos, and wellness components,” said Jan DeLyser, Vice President of Marketing. “CAC representatives are working closely with customers who merchandise California avocados, creating customized programs for the summer season.”
Aside from brick and mortar retail promotions, CAC is also tackling the e-commerce arena via a partnership with Chef’d. The Chef’d culinary team adapted the following four California avocado recipes into convenient meal kits that can be purchased online:
- California Avocado Grilled Pizza with Watercress Salad
- California Fish Tacos with Grilled Avocado and Pico de Gallo
- California Roll with Spicy Garlic Edamame
- Easy California Eggs Benedict with Citrus Salad
Beginning June 14, Chef’d will promote the kits on its website, in emails, in a blog post, and through social media. Additionally, the meal kit provider's website will feature a dedicated partner page showcasing information about the California avocado meal kit collection.
CAC will also be reaching its consumers through more targeted sponsorships at both the historic Grand Central Market in Los Angeles and the Pine Street Market in Portland. For the entire month of June, select vendors in each market will feature California avocado dishes at their restaurants, encouraging consumers to try unique and exciting menu applications. These sponsorships will be supported with social and digital content promoting the venues, the dishes, and California avocados.
CAC began drumming up support for California Avocado Month earlier in May, according to a press release, hosting media previews at these popular food halls. There, bloggers and other influential media were taught about California avocados from chefs and California avocado board members Rick Shade and Jessica Hunter and participating vendors treated the media to samples of their featured dishes.
“Media coverage of CAC’s Grand Central Market sponsorship last year exceeded 80 million impressions, and we’re anticipating even better pick up this year with the addition of Portland,” added DeLyser.
Additional CAC recipes will also be available through two-star Michelin Chef Josiah Citrin of Melisse in Santa Monica and Charcoal Venice, and Kevin Meehan of Kali. Theses chef recipes will be promoted online and via public relations outreach including blog posts and a press release.
AndNowUKnow will be continuing our coverage of California Avocado Month throughout June, so stay tuned for the latest and greatest in all things avocado.
DECATUR, AL - After announcing plans to open 100 locations in the United States by mid-2018, Lidl US is reportedly slowing its roll. According to Decatur Daily, Lidl initially announced last September it would be opening its first Alabama location after purchasing 4.4 acres of property that included a 35,000-square-foot “free-standing store” in Decatur, Alabama. However, Lidl will no longer be purchasing that property, or any property in Alabama, according to city officials.
“They canceled the deal just like they canceled a bunch of others along the East Coast,” said Jeff Parker of Parker Real Estate, who also noted that the Calvary Assembly of God’s property Lidl had inked a deal to purchase is back on the market for $2.85 million.
Lidl first joined the American market last year after opening nine stores along the East Coast. And, while the retailer announced it would be opening 100 stores by mid-2018, Lidl has only successfully opened 20 locations in North Carolina, South Carolina, and Virginia, with no word about the remaining 80 locations. The news source reports that Lidl could be restructuring its expansion plans and reverting back to the familiar territory of opening smaller 15,000- to 20,000-square-foot stores similar to its European format.
City Director of Development Wally Terry told Decatur Daily that while Lidl won’t be opening up shop in Alabama, competitor Aldi is increasing its Decatur store by 30 percent and will be expanding into the adjacent storefront. Aldi currently has 1,600 stores in 35 states, with 20 locations in Alabama.
While Lidl runs more than 10,000 stores in 28 countries, will the retailer continue to push into the American market with a modified expansion plan? AndNowUKnow will continue to keep you in the loop on all things grocery retail.
LUGO, ITALY - And just like that cherry season is in full swing in California, and like every year, harvest is keeping growers and packers on their toes as the season comes to a close in just a few weeks.
This season, thanks to UNITEC lines equipped with Cherry Vision technology, 12 cherry growers in California, including O-G Packing Company, Morada Produce, Chinchiolo Stemilt, Felix Costa & Sons, M&R Packing, Podesta Packing, and Warmerdam Packing, are approaching the peak of the season with ease. Nine of these lines were already operational in the past season, while three were successfully installed this year, with all of them providing great results since their launch.
“The start-up of our New UNITEC 20 lanes went well and the machine is great for Rainiers. The distribution is very even and with minimal drops. The drops are very shot and gentle on the product. The whole atmosphere of the line is calm,” Tom Gotelli, Partner of O-G Packing Company, said.
While this California season has been challenging, particularly due to adverse weather conditions during the winter that drove a significant reduction in volumes and quality issues, UNITEC’s Cherry Vision proved to be valuable for the automatic sorting of the quality.
“This year we purchased a 12 lanes UNITEC line with Cherry Vision 2. The start-up went well and we are very happy with the sorting,” said John Warmerdam, General Manager of Warmerdam Packing and Co-Founder of The Flavor Tree Fruit Company.
According to a press release, Cherry Vision, designed and developed by UNITEC’s R&D, is a reliable and strategic ally for cherry packers and marketers, and offers several advantages to customers in seasons where the quality of incoming product is affected by bad weather.
This season, Cherry Vision made a difference as the automation and high reliability of its sorting abilities based on internal and external quality helped save in labor while also allowing uniform and consistent final packs that continue to create a positive relationship with customers and ensure a top quality product.
“We installed 16 lanes equipped with UNITEC Cherry Vision this season. Start up went really well. UNITEC had a lot of support onsite to insure the start up. We all installed a UNITEC Cluster cutter that is working extremely well and a UNITEC Eliminator sizer that is very gentle and does a good job at taking out the small fruit,” said Fred Podesta, Owner of Podesta Packing. “We also installed a AC_350 high speed box fillers. This filler is gentle and handles the volume that UNITEC said it would. All in all this was a very good investment for M&R and Podesta Packing.”
For more of the latest news on technology benefiting our industry, keep reading AndNowUKnow.
HURON, OH - Mucci Farms announced that it’s officially harvesting from the first 24-acres of its 60-acre greenhouse expansion in Huron, Ohio.
“After years of hard work and strategic planning, we’re excited to hit another milestone in the Mucci Farms story,” said Bert Mucci, CEO, in a company press release. “We’re very appreciative of the strong partnership we’ve developed with The City of Huron, Huron Township, and Erie County officials to get the first 24-acre project off the ground.”
The entire 60-acre facility will be growing primarily tomatoes on-the-vine, in addition to some snack-sized specialty tomatoes. Mucci also announced that the entire 60-acres will be equipped with supplemental High Powered Sodium (HPS) lighting in order to grow through the winter months, allowing them to harvest Ohio grown tomatoes 365 days per year.
“We chose tomatoes on-the-vine because of its high demand year-round, particularly in the winter months,” said Joe Spano, Vice President of Sales & Marketing. “With grow lights in the entire facility, it was important to have a product that was always in demand.”
In addition to the remaining 36-acres of greenhouses being built in two remaining phases, Mucci Farms Ohio will include a 272,000-square-foot distribution facility that will be operational this summer. Harvesting from the final two phases will begin in the spring of 2019 and 2020.
“Expanding into Ohio allows us to reduce the food miles for our U.S. retailers and gives U.S. consumers their own locally grown vegetables,” explained Danny Mucci, President of Mucci International Marketing. “With such a high volume of our product already being shipped to the U.S., expanding into Huron was strategically done to improve efficiencies with logistics and food safety. Our proximity to market and avoiding a border crossing improves our opportunity to offer consumers with fresh, flavourful products with maximum shelf.”
Owning and operating over 200-acres of tomato, pepper, cucumber, lettuce, and strawberry greenhouses in Kingsville, Ontario, Mucci Farms also markets on behalf of 700 acres across the continent. An active community partner for initiatives focused on health, fitness, and education, the company plans to extend these commitments into Erie County.
“We are looking forward to getting familiar with Huron and Erie County over the next several months to find ways that we can be effective members of the community,” said Emily Murracas, Director of Marketing. “Once we are fully operational, we’ll be setting up a grand opening week to welcome city officials, media members, educators, and residents of Huron to tour our facility, learn about what we do, and share their ideas on ways we can be helpful to the local community.”
What will this latest move continue to look like for Mucci Farms? AndNowUKnow will report the latest.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has filed an administrative complaint under the Perishable Agricultural Commodities Act (PACA) against Unified Ltd., doing business as Pan American Banana.
According to a press release, the company, operating from California, allegedly failed to make payment to 14 produce sellers in the amount of $557,297 from September 2015 through March 2017.
Unified Ltd., doing business as Pan American Banana, 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.
SEATTLE, WA and AUSTIN, TX - After announcing plans to provide large-scale discounts to Amazon Prime members at select store locations earlier this month, Whole Foods Market and its parent Amazon have outlined plans to immediately expand the benefit program to 12 states—including California, Colorado, and Texas. Additionally, the company announced plans to offer Prime discounts at all Whole Foods Market 365 stores.
“From delicious dinner options like shrimp or rotisserie chicken to fresh organic raspberries, we're offering savings on products customers love and can enjoy with their families,” said A.C. Gallo, President and Chief Operating Officer at Whole Foods Market, in a press release. “Exclusive deals like the sustainably-caught halibut were a huge hit in Florida, and we're excited to partner with our suppliers to bring Prime members even more discounts on seasonal favorites and everyday staples.”
This week, the company noted, Prime members in these new locations can enjoy exclusive offers on many popular products, including:
- Organic raspberries for $2.50 per 6 oz. container
- Two lb bags (31-40 ct. per lb) of responsibly farmed tail-on white shrimp for $12.99—a $5 savings
- Antibiotic-free rotisserie chicken, $6 each on the day of May 30
- Back to Nature crackers and cookies, 2 for $5
- 40 percent off all probiotic supplements (weekend sale, June 1st through June 3rd)
The company also said that Prime members will enjoy an additional 10 percent off hundreds of sale items throughout the store and exclusive weekly deep discounts on select popular items.
Prime discounts are currently available at Whole Foods Market stores in Arkansas, Colorado, Florida, Idaho, Kansas, Kansas City, Missouri, Louisiana, New Mexico, northern Nevada, northern California, Oklahoma, Texas, and Utah and at Whole Foods Market 365 stores nationwide. Additionally, the discount will be applicable through the retailers grocery delivery program Prime Now—currently available in Austin, Dallas, Denver, Sacramento, and San Francisco—with new locations planned throughout 2018.
For more important retail news in fresh food, keep reading AndNowUKnow.