SAN ANTONIO, TX - They told me it would be fun. They told me it would be informative. They told me it would be meaningful. What can’t be conveyed until actually attending the event, though, is the sheer magnitude of excitement and motivation that is instilled in attendees walking away from Viva Fresh. As the event wound down, I took inventory of my first produce show experience, and boy, was it grande! Professionals from all corners of the produce realm made the 4th annual migration for the festivities. The show continues its regional influence that impacts the industry at large, with a nearly 200 percent increase in retail attendance since its 2015 beginnings.
With the number of buyers double the number of booths, a 25 percent increase from last year, and a crowded show floor keeping all exhibitors busy, Viva Fresh was buzzing with business enthusiasm! The show also touted a 15 percent increase in new attendees from the region, further embedding those attending the Tex-Mex-focused event in the industry.
AndNowUKnow got a chance to catch up with Texas International Produce Association President Dante Galeazzi at the show to hear more about how Viva Fresh has grown this year and why its footprint in the industry has been so impactful.
“It’s really amazing after four years to still see such excitement. Retail attendance is up 190 percent from 2015, and we are hearing from more and more that want to come see the show,” Dante tells me. He says the recognition of Texas’ importance in the market is the draw to Viva for buyers. “Texas is only getting bigger as far as its importance in the market, and they are wanting to come and make sure they have the right resources, right connections, and the right retention points. That is why, while we don’t plan to add many more booths—we plan to stay relatively the size we are in terms of exhibitors—we want to become more regional and highlight even further why this is such an important part of the produce industry. Our focus is going to be to continue telling the story of the Tex-Mex region, why it's important to tell our story throughout North America, and why it continues to be applicable to produce purchasers throughout the year.”
Those attending were able to network with the best of them, movin’ and shakin’ along the showroom floor. Before Saturday’s show, though, attendees went back to school with the education panels. First up on Friday was Merger & Acquisitions—The Game Changing Lottery of Private Equity and Big Business Dollars with panelists industry expert Jay Pack, CREO | Montminy & Co CEO Joel Montminy, and Agriglobe Capital LLC President Ferrell Daste, with our own CEO, Robert Lambert, moderating. The second educational session was brought to attendees by Tom Edwards, Chief Digital & Innovation Officer of Epsilon, who dove into post-Amazon produce industry challenges with How Amazon and Technology are Fueling a New Food Retailing Paradigm.
Director of Sales at Grow Farms Texas, Tommy Wilkins, sat down with me for a moment to talk shop about this year’s event in the midst of the educational sessions, and there, he told me just what made this year’s panels and speakers so exceptional.
“I think we’re really trying to increase the number of Tex-Mex regional suppliers to solve the issues around this area. We want to become a regional show. We find that value in putting Texas and Mexico on a platform and educating the retailers about that. We believe that we’re providing resources that the retailer needs. This is an incredible way to connect retail to the dirt,” Tommy explains to me. “The sessions talked a lot about what retailers want to know—the acquisitions and mergers session, who our customers are with the Amazon session, and others. We’re trying to really give educational sessions that our retailers are asking us to provide. The show, to have 330 retailers for a day in a 168 booth show is priceless.”
After being showered with breakfast options before the first two educational sessions; including a decadent yogurt dish, a mango smoothie, and a coffee bar; participants in Friday’s activities enjoyed a healthy luncheon while Keynote speaker Phil Gwoke of BridgeWorks took the stage with his informative session, The Multi-Generation Marketplace: How It’s Changing the Face of Produce Consumption, wowing participants with themes seen throughout generations and empowering those attending with knowledge to tackle consumers thoughtfully and strategically moving forward. The last education session was Can You Say Inocuidad? Examining Food Safety Initiatives in Mexico, where Luis Alberto Cruz Garcia informed attendees of the safety regulations and procedures seen on both sides of the border.
All of the aforementioned happenings have piqued interest in many retailers, including San Antonio, Texas-based H-E-B, because each year just keeps getting better and better with more opportunities to engage with industry members, making businesses run more effectively and smoothly.
"The H-E-B organization has continued to find great value in the Viva Fresh Expo, both for the important regionality of the event and its vendors, as well as the show's constant drive to elevate the program and the experience," Brian Boutin, Business Development Manager for H-E-B shares. "We are excited to see what the show will bring to the table in 2019."
I also had a chance to check in with Jimmy Bassetti on the showroom floor, where he filled me in on what this show means to J&D Produce's President and the industry at large.
“This show brings an amazing value to the industry. Our increased retailer attendance is a plus. This venue is amazing, keeping it nice and intimate. It’s turning out to be a great produce show,” Jimmy tells me, before divulging his favorite part of the show. “I would say the keynote speaker has always been my favorite. That is one that J&D always sponsors. It’s a time when we can have mostly everybody together to get our message across. Health and wellness is one of the key components of the show, as well as having the buyers that attend be able to go home and go back to their companies and share something positive that we are able to provide.”
And did this show give everyone something inspiring to talk about, or what!
“I thought the 2018 Viva Fresh Expo was another huge success! The show offered many great opportunities for us to make new connections, strengthen current relationships, and keep us on trend with what is going on in the industry,” Joseph Bunting, Produce Business Director at United Supermarkets and Advisory Board member shares with me. “It’s a true regional event that we look forward to attending again next year.”
The powerful connections created over time and nurtured at Viva Fresh, though, are the heart of the event, pushing it forward in new and exciting ways. This year’s happenings added new flavors to this sentiment with a stronger focus than ever before on the lifestyle that fresh produce entertains, but the people attending the event were just as eager to suck the marrow out of this opportunity to grow their industry in this key region, making the event a string of jolly festivities that consumed the entirety of the weekend in a blur of professional growth.
Those attending caught a glimpse of this as they descended the escalator into the event, where they were welcomed with the Gateway to Innovations showcase. Congratulations are in order for ScanTech Sciences, who walked away from this year’s event winning Best in Show!
The stats for this year's show are as follows:
- Total Expo Spaces = 168
- Total Number of Retailer and Foodservice Companies Attending = 330 from 98 companies
- Number of Tex-Mex regional based companies = 135
- Number of allied industry exhibitors = 37
- Number of non-regional grower/shippers = 19
- Number of NEW/1st exhibitors = 26
- New regional grower/shipper/Importer = 20
- New allied companies = 4
- New non-regional grower/shipper = 2 (both were sponsors)
Because of the event’s steadfast guidance and determination to provide the industry with a regional expo catering to the Rio Grande Valley’s continued growth, professional growth is made easier and more fun, and I think we can collectively say, “Time flies when you’re having fun!” See you next year, Viva Fresh!
KINGSVILLE, ON - A leader in fresh-focused innovation, SUNSET® is earning accolades and raising the bar with its value-added offerings. This weekend, the company took home honors in the first-ever Viva Fresh Produce Expo Gateway to Innovation Awards—winning Most Innovative Value-Added Solution for its You Make Me™ line of pasta kits.
“We’re thrilled to receive the first annual Gateway to Innovation Award for our You Make Me pasta kits,” shared CEO Paul Mastronardi. “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.”
According to a company press release, the You Make Me pasta kits, launched by SUNSET in 2017, were designed to provide busy consumers with a healthy and fast meal solution using fresh produce. Each pasta kit contains fresh SUNSET tomatoes, perfectly portioned pasta, a spice packet, and some come with gourmet infused oil.
SUNSET’s You Make Me offerings are available in four different flavors, including:
- Classic Italian (“You Make Me Fresh”)
- Spicy Arrabbiata (“You Make Me Hot”)
- Creamy Parmesan (“You Make Me Blush”)
- 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.
SUNSET was one of only eight honorees to receive Gateway to Innovation Awards in the program’s inaugural year. Innovation Award recipients were selected and assessed by a team of judges that included retail, foodservice, and produce industry veterans. Entries were selected and reviewed based on a set of strict criteria, and each finalist was displayed at the Viva Fresh Expo for attendees to view.
From all of us at AndNowUKnow, congratulations to the SUNSET team for a well-deserved prize.
SAN FRANCISCO, CA - With profitability a long way off for Postmates, the company may look toward rival DoorDash and its recent investment from SoftBank. According to Recode, multiple sources stated that Postmates and DoorDash have discussed a merger from which position the companies would be better equipped to take on GrubHub, Uber, and Amazon.
The news source reported that the DoorDash CEO Tony Xu and Postmates CEO Bastian Lehmann have discussed the potential deal at least once in the past year and that Lehmann privately expressed confidence in the merger’s occurrence.
Though there is currently no concrete deal, timeframe, or combined leadership plan, Postmates and its investors are under increased pressure to execute an agreement following DoorDash’s infusion of $535 million from SoftBank, according to Recode. This cash infusion leaves Postmates, who last raised $140 million in 2016, in the difficult position of being one of the least-funded company’s in an industry that includes the massive GrubHub with a public market value of $8.5 billion.
By the year 2022, Morgan Stanley Research Projects, 11 percent of U.S. restaurant sales will come from delivery orders and restaurant delivery will represent a $32 billion market opportunity.
Combined, Postmates and DoorDash would account for 32 percent of the market, still trailing far behind GrubHub’s 52 percent share.
Though Postmates grew 85 percent in 2017, the start-up is still losing 75 million a year. Postmates has also reportedly discussed a sale to GrubHub. DoorDash, declined discussing financials with the news source.
To stay in the know on market shifts, keep reading AndNowUKnow.
SAN ANTONIO, TX - Rapid growth is the new normal for fresh produce, and to keep in step with that growth, the industry needs top-notch solution providers pushing us forward. Enter CHEP and IFCO—a leading supply chain solutions provider and leading supplier of reusable fresh food packaging, respectively, who recently took to the show floor at Viva Fresh 2018 to tout its commitment to supply chain efficiency, sustainability solutions, and grower success stories.
“We are committed to providing growers with the products and solutions they need to provide their customers and consumers with year-round access to high-quality, nutritious, and affordable fresh food,” said Rick Overholt, Director of Sales, Produce, for CHEP. “Our platforms, containers, and supply chain solutions, combined with our expertise and global network advantage, form a winning combination that helps growers meet their marketplace and social responsibility goals.”
When our reporters spoke to the CHEP and IFCO team on the Viva show floor, Rick was happy to expound upon this sentiment.
“We have different programs that we have worked on with our customers. One of the biggest ones for produce has been customer storage. It drives very good environmental sustainability benefits, and it helps the customer get off to a very solid start to the season and have some inventory that is ready to go,” Rick shared.
In a press release, CHEP and IFCO named a few growers who have found success with the companies’ solutions over the last 24 months. Winning partnerships include:
- CHEP and IFCO eliminated more than 5 million pounds of carbon emissions, saved nearly 92 million gallons of water, eliminated over 4 million pounds of food waste, eliminated the solid waste produced by more than 3,000 homes annually, and saved enough energy to power over 32,000 homes for one year.
- Partnered with IFCO to ensure on time delivery of its fresh produce during peak harvest seasons, maximize operational efficiency, and reduce costs through the using IFCO Reusable Plastic Containers. IFCO and Pure Flavor developed a forecasting model to track the company’s produce orders and growing seasons, ensuring on-time delivery of the right number and type of RPCs throughout the year. In addition, some RPCs are stored on-site, providing the Pure Flavor operations group with greater flexibility to manage its product flow. IFCO now provides Pure Flavor with over one million RPCs annually.
- Partnered with CHEP to eliminate more than 1.63 million pounds of solid waste and more than 1.23 million pounds of CO2e from its supply chain. CHEP also identified process improvements to reduce pallet damage, reduce costs, and further improve sustainability.
- Increased efficiency and sustainability with CHEP’s pallet storage program and through its conversion to CHEP shared (pooled) pallets for international shipments. In addition, since 2009, as the result of Melon 1’s share and reuse of CHEP pooled (shared) pallets, the company has reduced nearly 1.3 million pounds of carbon emissions and kept nearly 1.7 million pounds of solid waste out of landfills.
- Converted to CHEP shared (pooled) pallets, which helped the company generate improved sustainability returns and meet its social responsibility goals, helping to provide 30,000 Mexican families with sustainable plancha wood stoves.
“No one understands the supply chain needs of growers better than IFCO and CHEP, and we know from experience the best solutions are achieved through partnership and collaboration with growers and the entire fresh food supply chain,” finished Craig Kelly, Vice President, Grower Sales, IFCO, in the release. “That is what separates us from our competitors.”
A major point that CHEP and IFCO wanted to highlight during its meeting at Viva Fresh was their commitment to sustainability. CHEP and IFCO noted they are committed to achieving a sustainable circular economy, and parent company Brambles detailed its environmental stewardship progress in its 2017 Sustainability Review, including the progress it has made in meeting its 2020 sustainability goals.
“To say it concisely, RPCs use less energy [and] use less water. They have lower smog [and] lower carbon emissions. Probably, most importantly to the retail trade, is that we lower food waste, which is incredibly important to the industry,” Gregory Kurkjian, VP of Retail Sales for IFCO, told ANUK.
And to learn more on exciting announcements launched at this year’s Viva Fresh, stay tuned to AndNowUKnow.
MINNEAPOLIS, MN - It looks like we could soon see a sale from SuperValu not long after unloading its Farm Fresh banner. A person familiar with the matter revealed that the retailer is exploring the move following pressure from activist shareholders, including Blackwells Capital LLC, according to Reuters.
As we previously reported, SuperValu recently sold several Farm Fresh locations to Kroger and Ahold chains, with intentions to pursue selling the 17 that remained.
Now, the inside source, who asked Reuters not to identify them due to the matter still being confidential, said that the company is working with investment banks Lazard Ltd and Barclays Plc as it explores its options.
Blackwells called for the sale of around 30 percent of its stores, the divestment of several real estate holdings, and a “refreshment” of its leadership last October, as well as outlining four potential initiatives to reposition SuperValu and “unlock value.”
In February, SuperValu outlined a series of strategic goals and initiatives highlighting the success of its wholesale operations in response to investor criticism.
The retailer’s shares were up 9.3 percent at $16.75 on Friday, when the source spoke with Reuters, giving the company a market capitalization of $643 million.
Having been reluctant to shed the stores it owns despite its focus on growing its distribution side, it will be interesting to see where these talks take SuperValu as it explores sale options. AndNowUKnow will report on the latest.
VILLENEUVE-D'ASCQ, FRANCE - French veggie giant Bonduelle Group is continuing to make forward-thinking moves, appointing a new Chief Executive to lead the company forward; the company announced plans to reorganize its corporate governance structure and promote Guillaume Debrosse to the role of CEO.
The appointment—made by outgoing CEO Christophe Bonduelle, who will remain on in his capacity as Chairman of Bonduelle—was made following Debrosse’s nomination at an international convention gathering 1,300 managers of the Bonduelle Group.
“This organizational change, effective as of July the 1st 2018, reflects the group's new dimension, its international expansion, and the VegeGo! ambition: to be the world reference in "well-living" through plant-based food,” the company noted in a press release. “It maintains the group's organization into Business Units, while encouraging the synergies between them in the various geographical areas. Finally, it ensures the progressive succession of Christophe Bonduelle respecting the long-term sustainability objective set by the family shareholder.”
In his new role as CEO, Debrosse will oversee three Executive Co-Directors:
- Philippe Carreau, in charge of the Europe zone encompassing the following Business Units: BELL (Bonduelle Europe Long Life) and BFE (Bonduelle Fresh Europe),
- Grégory Sanson, in charge of the group's Financial and Development Department,
- Daniel Vielfaure, in charge of the Americas zone, encompassing the following Business Units BFA (Bonduelle Fresh Americas) and BALL (Bonduelle Americas Long Life).
Debrosse, the company noted in its press release, is a graduate from Paris Dauphine University and a member of the Bonduelle family. He began his career at l'Oreal before moving to the telecoms industry, where he headed Telefonica’s Financial Department of O2 in Singapore. Debrosse joined Bonduelle in 2007, where he held several positions in the fresh processed operating segment—first in finance and later in Executive Management.
Most recently, Debrosse served as Managing Director of the BEAM (Bonduelle EurAsia Markets) Business Unit. He has been based in Moscow overseeing BEAM since 2014, and the company noted, in his new capacity as CEO, the BEAM Business Unit will remain under Debrosse’s direct management.
For more important news in the world of fresh produce, keep reading AndNowUKnow.
NOGALES, AZ - At Wilson Produce, an abundance of new and exciting initiatives is in the works. The company has earned an organic certification through PrimusLabs for its farms out of Sinaloa, Mexico, and, to top it off, Wilson has also decided to introduce new items to its portfolio including Shishito peppers and Roma tomatoes.
I spoke with General Manager Guillermo “Willy” Martinez about the new organic offerings, the company’s marketing strategies, and an update on growing conditions.
“We are in the process of brewing a new marketing strategy with an agency, but cannot discuss much yet until we fine tune the details,” Willy says. “The changes in the works will help us grow and generate excitement with our customers.”
But, while the company’s marketing strategies may be under wraps, Willy is happy to discuss market conditions.
“We are midway into our winter season with all of our products and are showcasing sweet mini peppers, summer squash, Roma tomatoes, and Shishito peppers,” Willy explains. We should be riding this winter season until late May or early June; by then we should be transitioning into our summer deal in Baja and Central Mexico.”
Wilson Produce has grown its program in Central Mexico, doubling the company’s acreage after having a successful trial last year in that region and knowing that its customers demand a year-round supply of excellent quality sweet mini peppers.
Stop by Viva Fresh booth #126 to visit with Wilson Produce, and to stay in the know about market conditions and crop conditions across the produce industry, keep reading AndNowUKnow.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) announced that Border Produce Services LLC satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA).
According to a USDA press release, the McAllen, Texas, company can continue operating in the produce industry upon applying for and being issued a PACA license. Arturo J. Garcia was listed as a member of the business and may now be employed by or affiliated with any PACA licensee.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to impose sanctions on a business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA approval.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named, responsibly connected individuals. USDA also requires any unlicensed company that fully satisfies all unpaid reparation awards to obtain a license if it continues to operate in the industry.
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. PACAstaff 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.
MCALLEN, TX - Springtime is always exciting because of the overall feeling of newness and fresh flowers blooming and popping up to bring us joy. To match the season’s penchant for fresh, Fox Packaging is celebrating the opening of its newest facility, spanning 32,000-square-feet. After eight months in the making, the facility is a thing of beauty, offering increased space and state-of-the-art printing and conversion equipment.
What does this mean for the company’s business endeavors? I checked in with Executive Vice President Aaron Fox to fill me in on the latest.
“It is a new facility from the ground up with state-of-the-art equipment,” Fox shares with me. “We needed to upgrade our printing capacity, and we found that the new press would not fit in our existing building. Once we started planning a new building for printing, we realized the efficiencies that we could attain by investing in the latest technology.”
This new move is strategic in nature, allowing the company to gear up for faster and more efficient business practices.
“Setting up a job takes a fraction of the time on the new equipment and speeds are more than doubled. Our flexibility is also increased. Every stage, from plate making on, is faster,” Fox shares. “We hope to see a big improvement in lead times and increase our flexibility while running more efficiently.”
Check out the video above for ANUK's exclusive drone footage of the facility in its early stages. As we continue our trek into 2018, Fox Packaging pushes the envelope forward with its latest facility opening, powering fresh produce with better tools for success.
BOISE, ID - After years of speculation that grocery giant Albertsons would launch an initial public offering (IPO) that would value the company at between $1.5 and $2 billion, the company announced it has withdrawn its bid.
Rumors had swirled around a potential IPO since early 2015, with Albertsons initially filing documents that would suggest the retailer planned to fetch around $100 million through the deal. Albertsons announced, then withdrew IPO plans several times over the past three years, but our most recent update suggested that the company would postpone the deal temporarily in the midst of the attention grabbing Amazon-Whole Foods deal. The offering would have been listed on the New York Stock Exchange as ABS, and was bookran by Goldman Sachs, BofA Merrill Lynch, Citi, Morgan Stanley, Deutsche Bank, Credit Suisse, and Barclays.
In an article on MarketWatch, the source suggests that Albertsons withdrew its plans for the offering due to the retailer’s deal with Rite Aid for a merger. There has yet to be official comment from Albertsons on the company’s press website as of 10 a.m. PST.
Where will Albertsons’ growth plan take it next? AndNowUKnow will keep our fingers on the retail pulse.