MONTEREY, CA - Teaming up with marketing research firm Nielsen, Organic Produce Network (OPN) reported its produce sales for the first quarter of 2018. Organic packaged salads continued to be a high driver, dominating organic fresh vegetable sales. Another produce star was organic berries, whose explosive growth boasted over 40 percent of organic fruit sales. According to Matt Lally, Client Manager for Nielsen, the first quarter numbers reflect an uptick in growth for all organic fresh produce.
“Parents and millennials have led the surge in sales which could prove quite the combination in the coming years as more millennials become parents,” said Lally in a press release. “Today’s consumer is interested in eating simpler, cleaner products and this is seen in the continued growth of organic fresh produce.”
Highlights from the report include:
- $1.2 billion in organic produce sales for first fiscal quarter 2018
- Organic fresh produce sales saw eight percent dollar and volume growth
- Organic packaged salads responsible for 19 percent ($250 million) of organic fresh produce sales
- Organic berries made up 13.5 percent ($166 million) of organic fresh produce sales
- Organic berry category saw a 21 percent increase in dollars and a 26 percent growth in volume compared to the first quarter of 2017
- Packaged salads, berries, and apples combined to make up 40 percent of all organic fresh produce sales
- Organic fresh vegetables accounted for $632 million compared to $400 million for organic fresh fruit
- Herbs, spices, beverages, and dressing accounted for $205 million
“Organic fresh produce continues to be a major revenue generator at retail. In addition to berries, organic potatoes, mushrooms, herbs/spices, beverages, and avocados all increased by double digits in both dollar and sales volume compared to the first quarter of last year,” commented Matt Seeley, Chief Executive Officer of OPN. “At the same time, per Nielsen data, conventionally grown berries, beverages mushrooms, potatoes, and herbs/spices were all flat or declined in volume sales.”
For all things fresh produce, keep reading AndNowUKnow.
SACRAMENTO, CA - It’s easy to forget about how much good we are able to provide our communities until we actually sit back and think about the work we do, day in and day out. With that in mind, Raley’s hopped on an opportunity to cultivate a better Sacramento region through fresh produce. The West Sacramento, California-based retailer donated 25,000 pounds of fresh apples to Sacramento Food Bank & Family Services for an event held at Howe Park in Sacramento, California, on Tuesday, May 8th. The donation is part of the retail chain’s ongoing participation with Take a Bite Out of Hunger™, a program sponsored by FirstFruits Marketing of Washington. Tuesday’s event benefited those within the local community needing healthy food options, providing the apples to Produce for All.
“The event was pretty amazing! To be able to bring fresh fruits and vegetables to Sacramento communities in need of these options is really rewarding. Many of those attending this event don’t have access to fresh produce, so it’s really exciting we’re able to help provide it for them,” Raley’s Senior Director of Produce, Greg Corrigan, says to me. "We have fresh apples, strawberries, potatoes, and onions for people to be able to use throughout the week. There was one person who wasn’t sure of how to use strawberries, so some of the education processes have been really great. People are able to learn how to prepare some of the things they are getting.”
All in all, there were 178 households who found food relief thanks to Raley’s support of the community’s need for fresh food offerings. When tallied, the numbers amounted to 347 adults, 415 children, 36 seniors, for a grand total of 798 people.
“Sacramento Food Bank & Family Services is so thankful for this incredible donation because we’re trying to get healthy food for families in need in our community. Produce for All comes out to 15 different locations every month within Sacramento, and our goal is to be at a location that is closest for families to walk, ride their bike, or take public transportation. They are learning about beautifully-grown produce,” Vice President of Communications and Marketing for Sacramento Food Bank & Family Services, Kelly Siefkin, tells me of the event.
The assistance that Raley’s provided at this event is just one example in a series of commitments by the retailer, proving community is embedded in the chain’s makeup. Since the program’s inception in 2010, Raley’s has donated more than 1.8 million pounds of fresh apples have to help local food banks feed those in need. This drive helps the company to connect with consumers.
“At Raley’s, we feel we have a higher responsibility to the communities in which we serve than to just sell them goods, but to really be part of the fabric of the community, and that means feeding people. We are not just feeding people with means, but feeding people within our community holistically. This is a great event, and we really loved partnering with FirstFruits Marketing of Washington,” Raley’s Category Manager for Produce, Michael Schutt, says. “To be able to come out here today and make sure all these people walk away with a generous donation of fresh apples is outstanding. Many of the people who go to these type of events are offered high-caloric and low-nutrient value food, so to really flip that equation upside down and offer nutrient-dense and fresh food is incredible.”
FirstFruits Marketing was built with a focus on delivering to those in need Regional Marketing Manager of FirstFruits Marketing, Tim Corkill, says to me. To do this, the company reaches out both globally and locally with programs like Take a Bite Out of Hunger. With programs like these, he explains, there are 1 in 5 people, or 20 percent of the population, that are food underserved in the Sacramento region. This gives the company the opportunity to get delicious fruits and vegetables into the households that really need them.
Thanks to Raley’s participation, those walking away from the event will have healthier food options for themselves and their families, as well as the education needed to make the most of their delicious goods.
BENTONVILLE, AR - Online grocery delivery is no joke, and in order to keep up with Amazon, many are making aggressive moves. Just last week, Sprouts Farmers Market announced it was dropping its Amazon Prime Now delivery partnership in order to expand the breadth of its delivery reach. This week, in a similar move, Walmart announced it will no longer be partnering with Uber and Lyft for its own online grocery delivery endeavors.
According to Reuters, despite being one of its largest partners for its ‘Rush’ service, Walmart has dropped Uber as a partner as it was hindering the retailer rather than boosting it ahead in the race with Amazon. In addition, Uber’s vision to quickly and efficiently deliver anything on-demand, including both people and goods like groceries, at the touch of a smartphone app was not reaching its full potential with Walmart.
“It is incredibly hard to deliver people and packages together,” said a source from a delivery company that works with Walmart, according to Reuters. “They are two completely different business models.”
This news comes as a shock as Walmart recently revealed Uber would be integral in plans to deliver groceries to more than 40 percent of the country.
“Customers shouldn’t notice any difference as the transition takes place,” said Walmart's Director, National Media Relations, Molly Blakeman, in an email to Bloomberg. While choosing not to elaborate on the reasoning behind the decision, Blakeman did note that Walmart will use other delivery service providers in the four markets where it had previously used Uber.
Uber spokeswoman Ellen Cohn told Reuters that the company had stopped the grocery partnership after informing Walmart in March that it would no longer participate in delivery operations after June 30. Instead, Uber will now focus on expanding its newer services like Uber Eats.
“We are coordinating with Walmart to make this change as seamless as possible,” said Cohn.
Blakeman also added that the partnership with Lyft never went beyond the initial Denver test market, and thus was not benefitting the company as well. Lyft declined to comment.
After recently joining forces with startups Deliv, Postmates, and DoorDash, will Walmart replace Uber and Lyft with these other partnerships? And will the retailer’s latest move give it an edge over competitor Amazon? AndNowUKnow will continue to report.
WASHINGTON, DC - Cindy Jewell, marketing maven of California Giant Berry Farms, is set be honored at the Reception Honoring Women in Produce, June 26 at United Fresh 2018 in Chicago. Held every year, the reception recognizes the contributions women have made in the produce industry. Cindy has been chosen as both honoree and featured speaker based on her involvement in the industry and how inspiring she’s been to others within it.
“Cindy’s strength and curiosity drive her to advance strategic marketing and communications innovation for every project she touches,” said United Fresh President & CEO Tom Stenzel in a press release. “She has worked tirelessly to stay engaged with the industry in order to harness her expertise and commitment to increasing consumption. We’re honored to have her leading the United Fresh Board of Directors this year and to also be able to celebrate her dedication with this honor.”
In her role as Vice President of Marketing at California Giant in Watsonville, CA, Cindy has been responsible for planning, developing, and executing all marketing and communications programs. Having built brand loyalty through California Giant’s social media and image campaigns, Cindy knows how to engage with consumers. On top of an already impressive resume, she has developed and maintained the crisis communications program at California Giant, served two terms on the United Fresh Grower-Shipper Board; two more with the United Fresh Produce Marketing & Merchandising Council, and a full term on the United Fresh Start Foundation Board of Trustees. She has previously held leadership positions at the Produce for Better Health Foundation and is a graduate of Class 30 of the California Agricultural Leadership Program.
Currently, Cindy is serving as Chairman of the United Fresh Board of Directors. She also serves with the Salinas Grower-Shipper Association, on the Board and Communications Committee for the Alliance for Food and Farming, and as Director for the California Giant Foundation leading the annual Tour de Fresh ride to support salad bars for schools.
Cindy will join a remarkable group of women including:
- Dan'l Mackey Almy, DMA Solutions, Inc.
- Tonya Antle, Organic Produce Network
- Frieda Rapoport Caplan, Frieda’s, Inc.
- Karen Caplan, Frieda’s, Inc.
- Margaret D’Arrigo Martin, Margaret, Inc.
- Jan DeLyser, California Avocado Commission
- Lorelei DiSogra, United Fresh Produce Association
- Jan Fleming, Strube Celery & Vegetable Company
- Janice Honigberg, Sun Belle, Inc.
- Lorri Koster, Mann Packing Company
- Julie Krivanek, Krivanek Consulting Inc.
- Kathleen Nave, California Table Grape Commission
- Lisa McNeece, Grimmway Enterprises Inc.
- Teri Miller, The Fresh Market
- Dr. Martha Rhodes-Roberts, Roberts Associates
- Steffanie Smith, Andrew Smith Company
- Heather Shavey, Costco Wholesale
- Mayda Sotomayor-Kirk, Seald Sweet International/Greenyard USA
- Rosemary Talley, Talley Farms
- Jenney Tenney, The Kroger Company
Congratulations to Cindy for this incredible achievement and to all the women honored at this event!
UNITED STATES - Summer is hitting the western United States early this year, as states like California, Arizona, Nevada, Oregon, and Washington experience boiling temperatures atypical for May. And, with temperatures climbing thanks to a northward bulge in the jet stream, the possibility of new wildfires is climbing, too.
“Extreme temperatures and a lack of rain will heighten the wildfire threat across the Southwest, threatening lives and property across the region,” said Brett Edwards, AccuWeather Meteorologist, according to an AccuWeather report.
The National Weather Service reported temperatures in the lower elevations of Arizona, southern Nevada, and eastern California will rise to 100 degrees or higher this week, with high pressures remaining until a cold front from the Northwest descends into the area. Already, Thermal, California, hit a daily record of 110 degrees last Sunday—the highest temperature in the United States this year, according to a report by UPI.
“Relief from the heat can be found along the California coastline,” said AccuWeather Senior Meteorologist Kristina Pydynowski. “Temperatures at Downtown Los Angeles will be held to near 80 early this week as highs in the 60s are expected for San Francisco.”
How will the sweltering temperatures impact the crops growing throughout the region this season? AndNowUKnow will continue to report on the latest weather highs and lows.
WENATCHEE, WA – Beloved by consumers, Stemilt's Honeycrisp is off for the finish line as it continues its race to be top apple. In its March 2018 Fruit Tracker Fast Facts video analysis, Stemilt reveals why this apple is performing so well, as well as the company’s overall U.S. apple category performance.
“Honeycrisp keeps showing its strength in the apple category and is acting very much like the hare from the popular fable,” said Brianna Shales, Communications Manager. “It’s outpacing its fellow top 5 apples, especially Red Delicious, which saw a double-digit dip in volume share in March.”
Highlights from the video include:
- Honeycrisp apple saw volume share increase 31.5 percent in March 2018 when compared to last year
- Apple’s retail price dipped because of the increase in volume, but dollars earned from Honeycrisp sales grew 14.4 percent
- Organic apple shares jumped from almost 1 percent year-over-year to 9 percent of apple category volume
- Average retail price for organic apples in March 2018 was $2.20 per pound—a drop of 6 cents year-over-year but still a 30 percent lift above conventional apple pricing
- Average price of all apples was $1.67 per proind, up 5 cents from March 2017
- Apples accounted for 5.9 percent of total produce sales in March 2018, which was down half a percent in March 2017
With the summer season fast approaching, Stemilt noted that retailers should plan to use apple ads to boost their sales. 3 and 5 lb bags account for 76 percent of bagged apple volume in March 2018, according to Stemilt.
“Washington State’s organic apple season will carry into the early summer months so this growth is a positive for retailers,” continued Shales. “Promoting organics a few more times before the season is up can boost the category. Stemilt recommends organic Fuji and Granny Smith for promotions in the coming months. Though apple volume and dollars are trending down year-over-year, apples are still delivering more than $3,000 per store per week on average across the U.S. Focusing on multi-variety apple promotions is a great way to ensure success for this key produce category. The spring is the final sprint for many apple varieties, but there are still opportunities for retailers to run once-a-month bulk apple ads in the summer. Supplement bulk ads with specials on bagged items like Lil Snappers® kid-size fruits, and you’ll continue to drive dollars from this staple category during the summer season.”
For more info on Stemilt’s apple category, watch the video above!
VISALIA, CA - Kim Flores and Christine Raymer have recently joined Pro Citrus Network (PCN), as VP of Marketing and Business Development and VP of Sales, respectively. This move, the company noted, will strengthen its multi-coast operations as it continues to expand its programs, adding depth and experience to the company’s sales and marketing team.
“Following our growth and expansion in the last few years to better serve our customers, it was important to take the next step,” announced Executive Vice President, Jacquie Ediger, in a press release. “We are a service-oriented company and continually strive to be the best in all we do. We are excited that Kim and Christine are joining us, bringing a high caliber of leadership, knoweldge, and skills to our growing organization. They are both great additions to our team and will be instrumental in achieving our growth objectives, taking our programs and company to the next level.”
Both industry veterans, Flores and Raymer bring to the PCN team a bounty of experience. Flores has over 17 years of experience under her belt, working in global fresh produce industry marketing, most recently at Seald Sweet and Greenyard Foods. PCN announced that Flores will lead and develop the company’s marketing and promotional strategies, in order to support and advance PCN’s new and existing programs.
“It is an honor to be a member of PCN’s team, which has a fantastic culture, strong values, and a great reputation for integrity and quality, especially among the customers and growers it serves,” Flores stated. “I look forward to serving our customers and growers, while further building upon PCN’s programs as an integral part of the PCN family. I am excited for the opportunities on the horizon and our continued growth trajectory.”
Once a former customer of PCN, Raymer joins the company with over 21 years of experience in the global produce arena, including exports and imports of citrus, grapes, stonefruit and other commodities. She will lead the Sales team, focusing on the company’s growth in retail, foodservice, and export programs.
“As a customer, I’ve had the pleasure of working with the PCN team for over a decade, while expanding citrus programs," said Raymer. “I am incredibly excited to be joining such an exceptional company, dedicated to providing customers with quality, value, and great service. I look forward to leading a truly dynamic sales team and helping to optimize opportunities for continued growth.”
Congratulations to both Kim Flores and Christine Raymer on their new positions!
For the latest in fresh produce news, keep reading AndNowUKnow.
ROSEMONT, IL - US Foods has reported solid growth despite challenging transportation conditions during the company’s first quarter fiscal 2018.
“During the first quarter we saw solid growth with independent restaurants and expanded gross profit per case by $0.19, our highest quarterly per case growth rate in recent history. Execution on our gross profit and operating expense initiatives drove 4.2 percent Adjusted EBITDA growth despite headwinds from weather and inbound freight costs,” said Chairman and CEO Pietro Satriano. “Our outlook for independent restaurants and the overall industry remains strong and we are well positioned to deliver on another successful year.”
Though the company’s total case volume decreased during the first part of the year, independent restaurant volume increased, and the foodservice provider reported nearly unprecedented gross profit per case alongside solid growth in net income, sales, and profits.
Highlights from the company’s first quarter include:
- Total case volume decreased 2.3%; independent restaurant case volume increased 4.3%
- Net sales increased 0.6% to $5.8 billion
- Gross profit of $992 million increased 0.1%
- Income before income taxes increased $28 million to $63 million
- Net income of $67 million increased $40 million
- Adjusted EBITDA increased 4.2% to $224 million
- Diluted EPS of $0.31; Adjusted Diluted EPS of $0.35
US Foods’ results reportedly beat independent estimates on profits, but sales fell just short of expectations. The company adjusted its guidance for total case volume growth—now approximately 1 percent—and net sales—approximately 3 percent—from a more optimistic 1-2 percent and 3-4 percent, respectively. All other guidances remaining as outlined in the company’s last quarterly report in February.
For more details, read US Foods' report in its entirety here.
For more fresh food news, keep reading AndNowUKnow.
IRVINGTON, NY - There's nothing that excites a consumer more than finding delicious, fresh produce that was grown by a farmer in their own community. Keeping this at the forefront of its expansion strategy is the team at BrightFarms, who is launching into new markets to ensure that retailers and consumers have access to the freshest local pre-packaged salads and herbs.
I caught up with Paul Lightfoot, CEO of BrightFarms, to learn more about the grower’s latest facility openings as it looks to broaden to new markets.
“We feel a little bit lucky with our time and place in history,” Paul tells me. “Consumers want to know where their food comes from, right down to the address and the name of the farmer that grew it, more than ever. They want food that’s safer, fresher, tastes better, and is grown more sustainably, and we’re providing that. We’re in an industry where a lot of the salads are grown on the West Coast. By growing in Ohio and Texas, our product is a week fresher and tastes a lot better, which gives consumers something they can trust. We’re a company with a mission to make America healthier and to improve the environmental footprint of the food supply. By growing our network, we’re able to do more of that and respond to market demand.”
The latest markets BrightFarms has set its sights on are Ohio and Texas. Currently putting the finishing touches on a 140,000-square-foot, chilled-environment high-tech greenhouse, the newest facility in Willmington, OH, is slated to open by July and will service supermarkets in the Columbus, Dayton, and Cincinatti markets. And, with lots of encouragement from the city of Abeline, BrightFarms will be breaking ground on its Texas-based facility this spring, with hopes of finishing by the end of this year. Both the markets in Ohio and Texas, Paul explains, were craving fresh, making them the perfect spots to expand to.
“Our strategy is as clear as a bell,” Paul explains. “We’re taking what already works for us in markets like Washington, DC, where we’re working in partnership with Giant Food Stores, and we’re replicating it in other markets. It works and people like it. Moving forward, we’re just going to keep building until we have a national footprint. Local produce for people in every market in the United States is our plan.”
BrightFarms’ current local farm network extends from Bucks County, Pennsylvania, which is meeting the needs for stores in Philadelphia and Central Jersey; Northern Virginia, which is meeting the needs for the greater Washington, DC market, including Baltimore, Maryland, and Virginia; and Illinois, which is meeting the needs in the greater Chicago and Milwaukee areas.
“Everywhere we go, we’re driving category growth,” Paul says. “Our data shows that we are bringing new consumers into the category—people who were not salad buyers, but local buyers, but who are now salad buyers because they found a local program.”
Offering locally-grown, pesticide-free spinach, baby arugula, baby romaine, baby kale, and spring mixes in pre-packaged salad clamshells, BrightFarms is freshening up the salad category and growing with consumer demand. Retailers that are interested in sourcing from BrightFarms Ohio facility can contact the company at [email protected].
Where will BrightFarms head next? Stick with us at AndNowUKnow for the latest in our industry.
LEAMINGTON, ON - NatureFresh™ Farms is hitting the road again and may be headed to a city near you! This time around, it’s introducing the Greenhouse Education Center program, a mobile 38-foot-long greenhouse equipped with plants, innovative growing technology, and a Bumble Bee ecosystem. Led by impassioned student leaders interested in spreading the word about greenhouse grown produce, this program shares with retail stores, schools, and fairs why it’s so important to include fresh food in your daily life.
The NatureFresh Farms team created the Greenhouse Education Center in 2015 because it saw a gap in consumers’ knowledge about food’s journey from farm to table, according to a press release. Hoping to ameliorate this issue, the mobile unit shows consumers exactly how their food is grown in greenhouses. Upon visiting the unit, they can see the drippers, ventilation system, heating rails—everything it takes to grow fresh food. NatureFresh also explained that this behind-the-scenes look helps consumers understand how their food is grown and gets them excited about healthy eating.
Traveling with the mobile greenhouse is a number of passionate students, each with their own unique background. NatureFresh commented that this brings a fresh perspective to the greenhouse farming industry. The students’ experience ranges from Business to Agriculture to Health Sciences, but they’re all passionate about the future of fresh food. This brand new team be participating in over 70 different events across eastern North America, including parts of Ontario, and states like Ohio, Pennsylvania, and New York.
For more of the latest in fresh food, stick with us AndNowUKnow.