SALINAS, CA - With a swift move to the cooler temperatures of Oxnard, Huron, and Salinas, California, Tanimura & Antle have completed its harvest operation transition. As the Sonoran Desert Valley have soared to sizzling temperatures, I spoke with Anthony Mazzuca, Senior Director of Commodity Management at Tanimura & Antle, about the rising customer demand for new crops from the San Joaquin and Salinas Valleys, how the transition played out, and what innovative products the company will focus on next.
“Grower/shippers that remain in the Sonoran Desert are experiencing temperatures in excess of 95 degrees, resulting in a rapid decline in quality on lettuce and leafy greens,” Anthony explains. “This is pushing customer demand towards new crops in the San Joaquin and Salinas Valleys.”
Anthony shared that the initial harvest of several categories in Salinas and Huron was pushed slightly behind schedule due to cold weather in late February and early March, alongside the wet weather the region has seen in recent weeks. He warned that the mix of late harvesting and delayed plantings could result in a slight dip in produce volumes once late May and early June hits. But, remember last year’s transition where the industry felt extreme delays in harvest and prolonged volatility in supply? Anthony says that 2018 has been much more fluid, with the Salinas-transition even resulting in a lift for key markets.
“The previously depressed market conditions of this year's Sonoran Desert season have greatly improved since transitioning northward, most notably for romaine,” Anthony continues. “Despite weather related challenges, sizing is consistent and quality has been excellent. Looking further out, volatility of supply in late May resulting from March’s rains will likely result another period of strong market conditions.”
Lettuce, leafy greens, and cole crops have all made a timely exit from Yuma, but Tanimura & Antle will have one last hurrah out of the desert. Anthony says the new crop of Artisan Sweet Italian Red Onions is gearing up for first shipments out of the valley for May 1st, offering unrivaled quality and flavor during the summer months.
Those retailers who want to capitalize on merchandising opportunities for the unique sweet onion can keep an eye out for Tanimura & Antle’s Be Bold display contest, happening May 14th through July 8th at retailers all across the U.S. Display bins and other point of purchase materials are available to all participating customers at taproduce.com/be-bold.
LEAMINGTON, ON - NatureFresh™ Farms has started full production for the 2018 season at its Leamington, ON, greenhouses, and it has a few new things in store. In addition to traditional favorites like the company’s greenhouse-grown peppers, tomatoes, and cucumbers, it is now introducing organic sweet bell and mini sweet peppers to its portfolio.
“By increasing the variety of commodities grown at our farm, NatureFresh is further defining itself as a leader within the fresh produce industry,” commented Retail Account/Procurement Manager Niels Klapwijk. “This form of growth for the company is very exciting.”
Now adding organic sweet mini peppers for North American consumers to its previous options of organic sweet bell peppers, the company said in a press release that the 2018 season is especially exciting for bell pepper growing because of this recent expansion of organically-grown offerings.
Not to be forgotten as one of the largest bell pepper growers in North America, NatureFresh Farms emphasized it continues to offer red, orange, and yellow sweet bell peppers for North American consumers.
Additionally, the popular TOMZ® Snacking Tomato line will be grown in both Ontario and Ohio greenhouses using the same growing processes and methods at both facilities. This is part of the company’s commitment to providing the same exceptional flavor and great quality that consumers expect from TOMZ grown in both locations.
Sold in vibrant, convenient packaging, which will be easy to spot as products hit store shelves this season, the TOMZ Snacking Tomato line includes:
- The newly-introduced Tomberry® Tomatoes
- Red Grape
- Orange Grape
- Yellow Grape
- Cocktail
- Red Cherry
A recent expansion also boosted production of NatureFresh Farms high-quality, consistently fresh Long English and Mini Cucumbers, now available year-round.
Produce grown in NatureFresh Farms Ontario greenhouses will consistently be shipped to North American retailers starting in April, 2018. With a diverse range of commodities now being grown in Leamington, ON, NatureFresh Farms said it continues to develop its greenhouse operations to successfully serve retail partners and respond to the evolving needs of consumers.
WASHINGTON, DC - President Donald Trump may be preparing to jump back into the agreement known as the Trans-Pacific Partnership (TPP), a multilateral trade deal that could affect the U.S.’s dealings with countries such as China and Japan. Trump originally withdrew from the deal just days after assuming the presidency, citing that TPP did not represent the American people and their financial well-being.
According to a report from The New York Times, the president decided to reconsider his orignal stance after hearing complaints from Republican lawmakers who said farmers and other businesses in their states would suffer from his international trade approach.
Senator Joni Ernst, Republican of Iowa, described her meetings with the president as “productive” and said that she had urged him to re-engage in discussions with countries in the Trans-Pacific Partnership, having explained, “Iowa farmers aren’t looking for another subsidy program; rather they want new and improved market access.”
Senator Ben Sasse, Republican of Nebraska, added, according to the source, “The best thing the United States can do to push back against Chinese cheating now is to lead the other 11 Pacific nations that believe in free trade and the rule of law. It is good news that today the president directed [Director of the National Economic Council] Larry Kudlow and Ambassador Lighthizer to negotiate U.S. entry into TPP.”
However promising this may sound to American farmers, including those in the produce industry who do dealings internationally, it appears Trump has not quite made up his mind. In a Twitter post made last night, the president stated he would consider re-entering the agreement only if it were “substantially better” than the deal offered to President Barack Obama. He continued, “We already have BILATERAL deals with six of the eleven nations in TPP and are working to make a deal with the biggest of those nations, Japan, who has hit us hard on trade for years!”
As explained by The New York Times, the deal, which was negotiated by the Obama administration, was "intended as a tool to prod China" into making changes in its economic policy that would be in the best interests of the United States and other countries. Some economists argue that the best way to combat China’s rising economic stature is to create favorable trading terms through multilateral trade deals like the Trans-Pacific Partnership.
Rejoining does not look to be simple, however. Countries that remained in the deal such as Japan have already spent several months renegotiating a pact, The New York Times explained, and finally agreed to a sweeping multinational deal just earlier this year. Trump, who seems to be looking for further concessions in the deal, would likely add additional complications to the talks and delay a deal even further.
AndNowUKnow will continue to watch TPP negotiations as the move forward, so stay tuned for the latest on what American produce companies can expect going forward.
BOISE, ID AND CAMP HILL, PA - The ink is not yet dry on Albertsons’ deal with Rite Aid, and it seems some of the would-be subsidiary’s shareholders are not keen on seeing the merger come to fruition. Concerns that the approximately $24 billion deal would undervalue the chain have flared intentions to block it, according to The Wall Street Journal, with opposed investors arguing Rite Aid would be better off overhauling its pharmacies on its own.
“The deal is absurd based on fair value of Rite Aid’s existing stores and what it could do with them,” Steve Krol, a Florida investor whose shares in the drugstore chain are worth around $415,000, told WSJ.
The move comes as a surprise following the deeply intertwined plan Albertsons already released following the close of the deal, which included Rite Aid’s Chairman and Chief Executive Officer John Standley becoming Chief Executive Officer of the combined company.
A Rite Aid spokeswoman said Wednesday that its board had “engaged in a thorough review of the merger with Albertsons and believes it is in the best interests of the company’s shareholders.”
Standley affirmed that view on Thursday, commenting, “It makes sense for us strategically and financially. The merger will transform Rite Aid,” he said on a conference call with investors.
Even so, it seems that the blockade has strong favor, with one of Rite Aid’s 10 biggest shareholders, which declined to be named, telling WSJ it planned to vote against the deal because it doesn’t give shareholders a fair premium.
Under the deal, Rite Aid investors may exchange 10 of their shares for a share in the combined company, plus $1.83 in cash. Alternatively, they could exchange 10 shares for 1.079 new shares and would own about 30 percent of the new business.
Another avenue of concern are those wary of the competition in grocery and are unsure it is an area they wish to invest.
“Grocery is too difficult,” said Barry Endelson, a corporate real-estate broker from White Plains, NY, who has a roughly $18,000 stake in Rite Aid.
Executives from both Albertsons and Rite Aid, however, have said the merged business would appeal to customers who want to buy food and drugs at the same store.
Federal regulators are allowing the merger to proceed, according to a Rite Aid regulatory filing, and Standley said he expects the shareholder vote to take place in July, with the merger closing soon after.
AndNowUKnow will report further as the deal develops.
BENTONVILLE, AR - It appears that Walmart is turning over a new leaf this season. The powerhouse retail chain announced plans to relax deadlines for some supplier deliveries in the wake of prior shifts to tighten deadlines. The move is thought to be in an effort to ease pressure felt by manufacturers, who, like we previously reported, are currently dealing with transportation woes and a shortage of drivers.
Walmart’s own trucking fleet and outside transport providers currently ship many of its suppliers’ goods. The result of this change is that shipping schedules have now eased, so stocks of food, household goods, and health and beauty products that arrive one day early to the regional distribution centers will not be subject to fines now—as opposed to last year’s shipments, which were.
The reason they were fined to begin with is they worry that overstocks would be created, but this is one way the company is navigating the changes made to driving regulations, which have relayed into higher shipping costs, a recent Bloomberg article explains. The news source goes on to explain that the tighter shipment schedules originally implemented, which were put into place last August, were designed to boost sales and cut back on out-of-stock items. On the flip side of this, the company saw a risk of deliveries coming late to its 4,700 U.S.-based stores, which is why it is easing up on this plan of attack during the current delivery chaos.
“This capacity crunch is real, and it’s getting tighter,” said CaseStack Vice President of Sales and Marketing, Colby Beland. “Walmart understands that, so they’re relaxing those windows so suppliers won’t have to take price increases.”
In the same Bloomberg piece, the company relayed that the early-shipment option that it is now trying on for size is not a result of the trucker shortage and will only be made available to some distribution centers, not all; however, the capacity crunch can be seen within the decision to make this move.
How will this move reflect in overall sales for the company, and will we see more strategic shifts in trucking plans moving forward as we navigate this current driver shortage? AndNowUKnow will continue to keep you updated with the latest!
VALENCIA, CA - Just about everything tastes better with a little citrus, be it a splash of juice here or a slice of it there. But how are varietals precious to citrus lovers doing this year, and how can retailers draw even more attention? Lucky for us, we’re getting answers that we like to hear!
“We are right in the thick of peak season and peak flavor. Navel and all orange varieties are peaking at large sizes this year, as well. The crop is down a little bit, which makes for larger fruit. We’re seeing good flavor and quality right now, in the heart of the season. And the same thing goes for organic navels, which we have available,” Sunkist Growers' Director of Communications, Joan Wickham, explains to me. “This is the best time to eat and buy citrus. Great quality, taste, and flavor with navels and cara caras.”
The company offers a promotional Peak Season bag in both 3 lb, 4 lb and 5 lb Giro and net options. And, since demand is hot right now with the season in full-swing, the company expects these bags to make their way out the door sooner, rather than later. Expecting a strong close at the end of the season, Joan tells me that we are currently in the midst of a high-demand market. While navigating the pressure to provide the produce essential, Joan goes on to express the burgeoning interests in the citrus category.
“When it comes to citrus, the biggest opportunity, as the backbone of the industry, is navels, but we’re seeing a lot of increased movement in specialty items. Sunkist has made a concerted effort to encourage our growers to produce more specialties because we’re seeing interest in citrus as a category grow. A lot of that was fueled by mandarins, of course. Consumers are becoming more interested in the full category. Things like cara cara navel oranges—we, in the industry, have known them for a long time, but consumers are just now starting to become acquainted with them. It’s a special variety for a number of reasons: its gorgeous pink color; its bolstered nutrition profile, being 30 percent higher in vitamin A and 20 percent higher in vitamin C, which people pay attention to during flu season; and its really great flavor, being slightly sweeter than navels. It has been a great growth opportunity. Specialty, as a whole, is growing in produce and, more specifically, citrus.”
While specialty citrus enjoys the spotlight at the moment, Joan explains that the magic to maintaining that is all in the marketing design. These babies are made for the limelight and ready for their close-up, which the company offers with unique merchandising offerings.
“Many people look to social media to identify trends, and in the case of citrus – look no further than Instagram to see the colors of specialty citrus lighting up feeds. I think citrus in general is made for Instagram. It’s exciting to see consumer interest grow in these distinctive varieties,” Joan tells me, before expanding upon other avenues of consumer engagement that retailers can take. “Our retail team continues to be very successful with our display program–we have shipped many more display kits this year than ever before. This push around specialty items helps to educate consumers about the different varieties and showcase the fruit. Those secondary displays have been an option that are growing in popularity with retailers as a way to do that without adding additional shelf-space. It’s a win-win. They are getting added promotional space while being able to tell that story. We do the designing in partnership with the retailers, building collateral to fit the retailer’s space.”
The versatility of the citrus is what makes them such a great sell throughout the store, Joan continues, since they have flawless partners throughout retail—seafood, bottled water, cocktail necessities, you name it! In addition to the obvious pairings, Joan explains that having citrus placed alongside citrus works well for consumers looking to find what they need—the easy comparing on the sales floor makes life simpler, and that is something I can cheers my lemondrop to.
As we move further into the season, citrus continues to pave its own way in produce in new and exciting ways. AndNowUKnowwill continue to keep you updated with more industry trends like Sunkist’s this spring and beyond.
SANDPOINT, ID - Spring always makes me crave bright, bold flavors, and this season, Litehouse is tapping into the flavors and ingredients us millennials love with its special spring promotion, “Make More with Less!” The promotion supports retailers and highlights OPA by Litehouse® Greek yogurt salad dressings, a line of full flavor dressings with fewer calories and less fat, with exciting in-store campaigns and a consumer sweepstakes.
“The growth of OPA by Litehouse dressing showcases the impact of Greek yogurt-based dressings at grocery,” said Brand Manager Alison Kellogg. “Greek yogurt is a go-to for many consumers looking for healthy options, so our delicious, lower-calorie Greek yogurt-based dressings are the perfect option, allowing consumers to make more with less!”
The “Make More with Less!” promotion runs April 16th-April 30th and will be supported by online and offline initiatives, including:
- In-store campaign with signage, sampling, and promotional pricing at select retailers
- Coupon for $1 off OPA by Litehouse dressing with the purchase of bagged salad
- Downloadable coupon from www.litehousefoods.com for $1 off OPA by Litehouse
- “Easy Meals for the Whole Family” Satellite Media Tour hosted by a notable lifestyle expert
- Recipes from bloggers and social influencers
- Consumer sweepstakes for a chance to win a 16-piece cookware set valued at $800
Starting April 16, consumers can enter the sweepstakes by posting and sharing a picture of their favorite healthy dish with #MoreOPAPleasePromo on Instagram, Twitter, or the Litehouse Facebook page.
A $7.7 billion category in the U.S., according to a press release, Greek yogurt is a favorite among health-conscious millennials due to its creamy texture, protein content, and low-fat options. With bright, bold flavors like the refreshing OPA by Litehouse Strawberry Poppyseed dressing, which pairs perfectly with a kale summer berry salad and is only 50 calories per serving, and the creamy OPA by Litehouse Avocado Cilantro dressing, which adds cool flavor to spicy dishes and is only 50 calories per serving, Litehouse’s Greek yogurt dressings are tapping into the unique flavors millennials crave, according to a proprietary study.
A healthy and easy way to add flavor and fun to family meals, OPA by Litehouse has less fat and fewer calories than regular dressing and is available in classic favorites like Ranch and Blue Cheese and delicious flavor innovations like Tzatziki Ranch and Feta Dill. OPA by Litehouse dressings are refrigerated, gluten-free, contain no high fructose corn syrup, and are made without any artificial flavors or preservatives and are the perfect complement to our industry’s fresh produce this season.
To learn more about the sweepstakes and promotion and to discover easy, healthy, five-ingredient recipes, follow Litehouse on social media or visit www.LitehouseFoods.com. For more of the latest going on in our industry, stick with us at AndNowUKnow.
HOUSTON, TX - Global foodservice provider Sysco has announced the addition of a new Director to the company’s Board—expanding to 14 members. John M. Hinshaw has been elected to the position.
“We are pleased to welcome John to our board,” said Jackie M. Ward, Chairman of the Board, in a press release. “His leadership and service with significant public companies of various industries provide him experience in the operations of large, complex organizations and expertise in both information technology and management, enabling him to effectively collaborate with the board and Sysco management.”
Hinshaw brings decades of experience in various senior tech and information roles. He most recently served as the Executive Vice President, Technology and Operations (from November 2011 to October 2016), and Chief Customer Officer of Hewlett Packard Enterprises (from November 2015 until his retirement in October 2016).
Prior to Hewlett Packard, Hinshaw served as Chief Information Officer (from 2007 to 2010) and Vice President and General Manager (from 2010 to 2011) for The Boeing Company. Hinshaw also spent 14 years at Verizon Communications where he served in various senior executive capacities, including Senior Vice President and Chief Information Officer of Verizon Wireless, overseeing the IT function of the wireless carrier. Additionally, Hinshaw serves on a number of Executive Boards, including The Bank of New York Mellon Corporation, DocuSign, and NAF.
According to a company press release, Hinshaw will stand for reelection later this year at Sysco’s Annual Meeting of Stockholders on Nov. 16, 2018.
For more important news on the produce industry, keeping reading AndNowUKnow.
MEMPHIS, TN - Kroger is dropping a multi-million dollar investment this week, one that will translate to lower prices for as many as 3,000 items in 101 stores throughout parts of Arkansas, Kentucky, Missouri, and Tennessee. The price cuts span all store departments, including organic products, natural foods, grocery, and general merchandise.
“Our customers will find price reductions on every aisle, in every department, in each of our stores,” said Delta Division President Scot Hendricks, according to a report by the Memphis Daily News.
Alongside Hendricks, Teresa Dickerson, Corporate Affairs Manager for the Delta Division, noted that the retailer will leave its old prices in place above the new discounts in order to send a clear message to its customers that tangible changes have been made. Each specially-discounted item can be identified by yellow “Low Price” stickers, distinct from sale prices or discounts that are given to Kroger Plus Card holders.
Will this strategy translate to a fiercer competitive edge for Kroger as it continues to wage retail war? AndNowUKnow has our eyes on further developments.
SAN ANTONIO, TX - With the goal of recognizing excellence in technology, packaging design, new product development, food safety, machinery, and software, the Viva Fresh Expo launched its inaugural Gateway to Innovation Awards this year. I was honored to chair this year’s committee, which brought the 2018 program to fruition, and I’d like to take a moment to further highlight some of those award winners that graced the show, in Part 1 of this 2 Part series.
And it only makes sense to kick off this feature with Best in Show! Announced Saturday, April 7th on the show floor, ScanTech Sciences received this first-ever Viva Fresh Best in Show award, which was voted on by the show’s attendees and exhibitors. Find out a little bit about some of these award winners below...
Best in Show Awards and Most Innovative Food Safety Solution: ScanTech Sciences: Electronic Cold-Pasteurization
“At ScanTech Sciences, we are honored to be recognized by the judges for excellence in food safety, but we are even more grateful for the popular vote that showed support from the produce community,” Antonio Elosua, Customer Integration Manager, shares with me. “We applaud AndNowUKnow and the Texas International Produce Association for creating these awards to encourage and celebrate innovation in the produce industry. The ScanTech Sciences team has been working diligently to provide a next-generation food safety treatment to drastically reduce the incidence of foodborne pathogens.”
ScanTech’s Electronic Cold-Pasteurization is a post-harvest food treatment that showers food commodities with controlled amounts of electricity via high-energy ionizing electrons. According to the company, these electrons sterilize pests, destroy pathogens, and kill bacteria and can be used on commodities such as fruits, vegetables, herbs, and spices.
Most Innovative Value-Added Solution: Mastronardi Produce: SUNSET® You Make Me™ Pasta Kits
“We’re thrilled to receive the first annual Gateway to Innovation Award for our You Make Me pasta kits,” CEO Paul Mastronardi shared in a recent press release. “Our goal is to always lead our industry in innovation and I’m pleased to add You Make Me to our roster of award winning items.”
SUNSET’s You Make Me pasta kits were uniquely designed to provide busy consumers with a healthy and fast meal solution using fresh produce. Each kit features fresh SUNSET tomatoes, perfectly portioned pasta, a spice packet, and some come with gourmet infused oil. You Make Me is available in four different flavors: Classic Italian (“You Make Me Fresh”), Spicy Arrabbiata (“You Make Me Hot”), Creamy Parmesan (“You Make Me Blush”) and Cold Pasta Salad (“You Make Me Chill”). Each kit serves dinner for two or makes four sides, and can be prepared in 15 minutes or less, according to the company.
Most Innovative Equipment: Fox Packaging: Pouch Bagger
"Our team at Fox Packaging understands our customers' needs and we work tirelessly to innovate solutions and bring a high-quality product to market," Aaron Fox, Executive Vice President, tells me. "With shows like Viva Fresh, I hope that our industry can continue to raise the bar on ingenuity and Fox will be here to help lead that charge."
The Pouch Bagger, by Fox Solutions, was designed specifically for the fresh produce industry and can handle a wide variety of fresh produce items while simplifying the pouch bagging process and delivering maximum bagging efficiency, according to the company. It holds 300 empty bags at a time and filling up to 30 bags a minute. This piece of equipment uses its advanced “soft fill” feature to gently handle apples, peaches, pears, and plums to minimize bruising during the packing process. Utilizing, Fox Packaging’s Stand Up Combo Pouch Bag—which features a mesh component for increased ventilation—the Pouch Bagger is bringing together two innovations to bring more value to Fox’s customers.
Most Innovative Vegetable Product: Love Beets USA: Honey + Vinegar Golden Beets
“We are so excited to have won the Most Innovative Vegetable award for our new diced Honey + Vinegar Golden Beets. The flavor profile as well as the diced format of this product pushes the envelope of innovation and consumer convenience. It is the epitome of “no mess, no fuss” and the packaging’s peel and reseal format adds to the product’s appeal. This fresh offering of beets is unlike anything else on the market and adds a flavorful and colorful element to a variety of dishes,” said George Shropshire, General Manager of Love Beets.
The company’s Honey + Vinegar Golden beets are diced, steam-cooked, and ready-to-eat; containing fresh, all-natural ingredients that include golden beets, white vinegar, honey, and root fiber. The flavorful and unique product has a shelf-life of 36 days and will cut shrink at the store level significantly and create the utmost convenience for not only the retail space, but the consumer as well, as the company notes.
Congrats to the winners of this inaugural Viva Fresh Gateway to Innovation Awards program, I look forward to watching this program rise to the next level in 2019! Stay tuned for a snapshot of the awards for Most Innovative Vegetable Packaging or POS Solution, Most Innovative Technology Application or Software, Most Innovative Fruit Packaging or POS Solution, and Most Innovative Fruit Product.