LOS ANGELES, CA - The possibility of porch pirates stealing away with our online goods before we can enjoy them is too much to bear, but luckily for us online shoppers, Amazon has come up with a solution that benefits more than just us consumers. As a rising grocery duo, Amazon and Whole Foods are mixing services, with Whole Foods groceries now offered via Amazon Prime and Amazon lockers—spots where online shoppers can pick up their online goods—now found in Whole Foods stores.
And thanks to these lockers, Whole Foods stores are seeing an influx of shoppers making quick trips to locations with one thing in mind—their online purchases—but who end up staying and browsing the distractions aplenty you can only find at brick and mortar.
According to Reuters, location data advertising firm inMarket studied 98 stores, 76 of which had lockers, in the New York, Los Angeles, Chicago, Philadelphia, Dallas-Fort Worth, San Francisco, Washington, Houston, Boston, and Atlanta metro areas and found that short “micro” visits, defined as three to five minutes in length, were up 11 percent at stores with lockers since Amazon closed its purchase of Whole Foods last year. In comparison, stores in the same cities without lockers, were only up seven percent.
“There’s a serendipity and immediacy to the in-store experience,” said Todd Dipaola, Chief Executive and Founder of inMarket. “As good as delivery is getting–one-day delivery, sometimes one-hour delivery–that still can’t compete with the one-second immediacy of being in store and picking up that avocado that I’m about to make guacamole out of because I thought about it in that moment.”
And with more foot traffic, Whole Foods is taking advantage of the lockers as a new way to boost sales. Specifically, Reuters noted, the grocer is driving impulse sales by placing products near lockers and providing quick and easy payment options that boast an ease-of-purchase online shoppers can’t resist.
Will more brick-and-mortar behemoths fuse online shopping with traditional grocery as a way to boost sales? AndNowUKnow will continue to report with the latest.
CALIFORNIA - As we’ve reported, a series of supercharged storms blustered through California this month. The storms brought some much-needed rain to the valley and snow to the Sierra region, but also carried with them the threat of crop damage and increasingly difficult growing conditions. But with the constant warning of drought hanging over the heads of Californians and California-based growing operations, it is difficult to remain ambivalent: thank goodness for the snow!
The National Weather Service Sacramento, via its twitter handle @NWSSacramento, tweeted, “In about a month, the water in the Sierra snow pack has more than tripled! Feb 22nd, there was an average of 4.6", Mar 23rd there was 15.5", going from 16% to 56% of the Apr 1st average.”
In response to this tweet, Daniel Swain, Climate Scientist at UCLA, via his twitter handle @Weather_West, tweeted, “California's snowpack has experienced a pretty amazing recovery in recent weeks, which is great news! And yet despite the feet of new powder, stored snow water still remains far below long-term average—a testament to just how bad things were in February.”
The California Department of Water Resources, which measures the snowpack annually on April 1st, reports that, as of yesterday the 27th of March, all regions—Northern Sierra/Trinity, Central Sierra, and Southern Sierra—are at normal percentages for this date. Based on data provided by the California Cooperative Snow Surveys, the snow level percentages of each region respectively are 48, 65, and 56 of long-term averages.
The snowpack is a major element to California drought prevention, meeting 30 percent of the state’s water needs, according to SF Gate. Due to weak storms in November and January, on February 20th the snowpack was just 20 percent of average with a high-pressure ridge on the West Coast blocking moisture-rich storms from the Pacific Ocean.
Luckily, March’s atmospheric storm seems to have largely remedied the situation, dropping 212 inches of snow in Squaw valley, according to SF Gate.
We will continue to report on spring storms that bring both the promise of drought relief and the threat of growing challenges and we hope you’ll stay with us at AndNowUKnow as we do.
LOS ALAMITOS, CA - The Eastern Produce Council (EPC) is honoring Dr. Frieda Rapoport Caplan, Founder of Frieda’s Specialty Produce, at the 52nd Annual John J. McAleavey Dinner Dance on April 7th.
“I am so honored to have been chosen by the Eastern Produce Council for this honor,” said Caplan. “Some of my first direct customers are EPC members: Wakefern, D’Arrigo Brothers, and Kings Supermarkets.”
The Woodland Park, New Jersey-based event will honor two women for decades of produce industry contributions, one being Caplan, a recent press release reported.
“Frieda is an amazing pioneer in our industry,” said EPC Vice President and Wakefern Senior Produce Buyer Marianne Santo. “I join all my peers at the Eastern Produce Council in recognizing her contribution to the industry.”
The other female honoree is Annabel Donio Arena, who receives the honor posthumously for her second-generation leadership of Hammonton, New Jersey-based Frank Donio Inc.
Congratulation to Dr. Frieda Rapoport Caplan and to the whole Frieda’s team on this incredible achievement!
WASHINGTON, DC - Growers Organic LLC, operating out of Denver, Colorado, has posted a $175,000 cash surety bond with the U.S. Department of Agriculture (USDA).
According to a USDA press release, the company posted the bond to obtain a license to operate in the produce industry.
Under the regulations of the Perishable Agricultural Commodities Act (PACA), the company was required to post the bond following its prior involvement in bankruptcy.
USDA will hold the bond for three years, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct business according to PACA rules.
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, dealersm 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.
HOUSTON, TX - Brothers Produce Chief Innovation Officer Brent Erenwert moved up to Chief Executive Officer this month, taking the reins as the company continues to expand in various areas. The newly-named CEO took the time to chat with me about the direction he sees for the company, as well as some of the growth already in the works for 2018.
“I expect 2018 to be one of our biggest growth years in packages to put through the company,” Brent starts when I ask about the months ahead. “What we're doing now is evolving. Amazon started with books, and will always sell books, but look at them now. At Brothers, we have grown to be a major logistics and service company that sells produce. That's what we were founded on, and that's what we will continue to do.”
Through his former role as Chief Innovation Officer, Brent told me he has been hands on in all aspects of the company’s brand and marketing. Taking that a step further in this new role, he sees a surge of items Brothers Produce will be carrying, both in produce and non-produce items.
“We’ll be enhancing and introducing fresh items in schools and hospitals, particularly, and I’m already looking for a separate space for the recent cold chain expansion we just had. I have a feeling cold storage will be one of the biggest growing segments to come, and that is another area we are currently looking to grow,” Brent shares.
Not only does Brothers plan to grow in those areas, but in the team to operate within those spaces.
With 110 refrigerated trucks in Houston, Texas, plans to grow in fresh distribution, and the pursuit of another facility, Brent says that the sales staff will also expand this year.
“It all comes back to that service. You can have the quality and the price, but if you don’t deliver when you say that you will, then the quality and price won’t be there. At the end of the day that's what we are—the company that will bring the best we can in produce and more.”
Congratulations, Brent, on this new role and all that is ahead!
FRANCE - Amazon is saying “Bonjour” to its newest partner, France’s Casino Group. The e-commerce giant is partnering up with Monoprix, a Casino Group company, to offer the grocery retailer’s products to Amazon’s customers through the Prime Now service.
“Thanks to this unique partnership between Amazon and Monoprix, Casino Group reinforces its omnichannel distribution strategy and gets even closer to its customers and their needs,” said Chairman and CEO of Casino Group, Jean-Charles Naouri, according to a recent press release. “This commercial partnership is a new milestone in Casino Group strategy to innovate even more for tomorrow’s urban commerce.”
Customers can find their grocery necessities through the virtual store, Prime Now, which is available to those who either download the service on their iOS or Android phones or use the website www.primenow.fr. In addition to fresh products, this partnership will offer Monoprix store brand options, such as Monoprix, Monoprix Gourmet, Monoprix Bio, and La Beauté Monoprix.
“This commercial partnership, which further enlarges Prime Now service selection, will enable Amazon Prime customers to benefit from ultra-fast deliveries for their Monoprix orders,” said Amazon France’s Country Manager, Frédéric Duval.
While Casino noted in November that it was looking to British-based Ocado to expand its e-commerce platform, according to Reuters, U.S.-based retailer Amazon has made a point of entering France’s grocery delivery industry.
“Monoprix further differentiates and increases its unique position as urban omnichannel leader. Monoprix will benefit from the most comprehensive grocery delivery service in Paris,” explained Chairman of Monoprix Régis Schultz.
This could signal more partnerships all over the globe, Reuters explained in a recent report. According to the news source, the two companies were in Brazil negotiating a possible partnership or sale of Via Varejo SA, an electronics and appliance chain. While those Via Varejo SA reports are speculative, more concrete evidence shows that Casino Group shares jumped 9.7 percent after news of the partnership with Amazon and the possibility of a larger deal in the future.
How will this new partnership shape the industry both abroad and on the homefront for Amazon? And will the e-commerce powerhouse set its eyes on more global partnerships moving forward? AndNowUKnow is looking for answers and will continue to report with the latest industry news!
SHENZHEN, CHINA - Mission Produce and its partners Lantao and Pagoda announced at PMA Fresh Connections in China that they have reached an agreement to build a second avocado ripening center in Southern China, which will complement the group’s already existent center that opened in Shanghai early last year.
“We believe in this country, and we think the opportunity is huge,” Steve Barnard, President and CEO of Mission Produce, said.
This new center is set to open in September 2018 and will help supply ripened avocados to Pagoda’s 2,800 stores and additional retail outlets throughout China.
“We thank Mission Produce and Lantao for their support,” Qidong Zhu, General Manager for Pagoda, added. “We are committed to working together to make the project a success. After opening the first ripening center in Shanghai, we experienced strong demand from Southern China. This new center will give us the opportunity to supply this region.”
The partners have intentions of opening more avocado ripening facilities across China in the next five years, according to a press release.
“Launching a ripening program in China has been a great success, and we’ve seen strong consumption increases over the past year,” Lantao CEO John Wang stated.“The next center will position us to better serve customers in the south.”
To follow expansions at home and abroad, keep reading, AndNowUKnow.
DALLAS, TX - Viva Fresh Produce Expo is almost here! And who better to bring to this year’s Expo then the future of the fresh produce industry? This year, DMA Solutions is bringing nine top performing students from Texas A&M University, hand selected by Dan’l Mackey Almy herself, as a part of the Aggies for Fresh scholarship, supported by Texas International Produce Association (TIPA).
“For the past two years, we have had the joy of mentoring and helping Aggies find their place in the fresh produce industry at the Viva Fresh Expo thanks to the support of TIPA,” said President and CEO of DMA Solutions, Inc. Dan’l Mackey Almy. “We believe that these students are the next generation of great minds who could really help shape the future of fresh—we’re hopeful to continue the success of placing students in this growing industry.”
After expressing an interest in pursuing a career in fresh produce, the students selected are eager to learn more about what a role in fresh produce could look like for them following graduation, including possible internships or full-time positions. Industry leaders will have an opportunity to meet these students on the tradeshow floor as well as during the Aggies for Fresh reception, taking place Friday evening at 4:30 pm–5:30 pm.
According to a press release, this year’s Viva Fresh scholarship recipients include the following:
- Shelby Counter, Bachelor’s in Agribusiness (May 2018)
- Jacob Jordan, Bachelor’s in Agricultural Leadership and Development (December 2018)
- Maria Alejandra Ramirez Lopez, Master’s in Agribusiness (May 2019)
- Chase Mayfield, Bachelor’s in Horticulture (May 2018)
- Bridget Santana, Bachelor’s in Bioenvironmental Science (May 2019)
- Jessica Schaffer, Bachelor’s in Agricultural Leadership and Development (May 2019)
- Monica Swei, Bachelor’s in Business Administration in Business Honors (December 2019)
- Cheyenne Upton, Bachelor’s in Agricultural Communications and Journalism (May 2019)
- Claire Wilson, Bachelor’s in Agricultural Communications and Journalism (May 2018)
Aggies for Fresh also invited Codie Wright, Sales Program Coordinator at Texas A&M University, whose leadership and passion for bridging the gap between industry and academia has been invaluable in creating material that is setting students up for success in our industry.
As one of the largest Agricultural Science schools in the world, Texas A&M University seeks to enable students with the resources necessary to answer the grand challenges agriculture faces daily as well as provides the fresh produce industry a tremendous talent pool.
This year, Viva Fresh Produce Expo will be held in San Antonio, Texas on April 6-7, 2018. For more information about the nine scholarship attendees, please visit this website. And for more of what’s to come at this year’s expo, keep checking back with AndNowUKnow.
FOWLER, CA - Bee Sweet Citrus is fighting this year’s terrible flu season on two fronts: by supporting the health of its employees and by bringing vitamin C-packed citrus to its consumers. I spoke with Monique Bienvenue, Director of Communications, about the origins of the company’s social sustainability initiative and how Bee Sweet can help consumers battle the common cold.
“Last year, Bee Sweet Citrus established a partnership with United Health Centers to provide its employees with basic health, dental, and nutritional services,” Monique said. “If an employee isn’t feeling well, they have the option of visiting one of the 15 local UHC clinics in the surrounding area, and can even schedule an annual eye exam if need be.”
Through its partnership with United Health Centers, nutritionists and health practitioners often visit Bee Sweet’s packing facility to discuss meal planning and administer basic health services, like checking one’s blood pressure. The benefits provided through this partnership aren’t just limited to employees either; spouses and dependents can take advantage of these benefits as well.
In addition to the care provided by United Health Centers, Bee Sweet also offers its employees a variety of healthcare plans and access to a 401K retirement plan and other savings plans.
“Bee Sweet Citrus works hard to make sure its employees know they are family,” said Monique. “Their hard work is vital to the success of our company, and we want to make sure they have access to services that benefit the health and well-being of them and their families.”
Beyond the doors of its packing facility, Bee Sweet also spreads health and happiness with vitamin C-packed citrus fruit.
“Citrus fruits are versatile: you can throw them in smoothies, use them in parfaits, put them in salads or eat them as they are,” Monique explained. “With our domestic season in full swing, consumers currently have access to several different citrus varieties—each one providing amazing health benefits and unique flavors.”
Not only does Bee Sweet offer natural remedies for the common cold, but it’s doing so in a way that appeals to foodies, families, and the everyday health enthusiast.
“Consumers want access to healthy, delicious meals that don’t take long to make,” explained Monique. “Through our #EatMoreCitrus campaign, consumers can look to our website and social media platforms for healthy recipes, nutritional content, and variety-specific information.”
Bee Sweet’s #EatMoreCitrus campaign aims to inform consumers about the nutritional benefits of citrus varieties, as well as the characteristics that make each variety unique. More information can be found on their Facebook, Twitter, Instagram, and Pinterest accounts.
To follow the industry’s efforts to support the health and well-being of both its employees and consumers, keep reading AndNowUKnow.
LOS ANGELES, CA - Over the course of the past year, it seems like our industry in particular was awash in mergers and acquisitions. From the high-profile purchase of Mann Packing by Del Monte Fresh Produce to the private equity investment made in Dole by Total Produce, owners and operators in our industry took advantage of propitious economic circumstances to buy, sell, invest, and otherwise transact in ways that will affect the produce industry for years to come.
So, how can a potential seller best prepare for a sale or investment and reap the benefits of this frothy investment market? I spoke to Joel Montminy, Founder and CEO of CREO | Montminy & Co.—a Los Angeles-based boutique investment bank with extensive experience advising companies in the food industry—to find out more about the process from the field up.
Q: Tell me a little bit about how a potential seller would approach the process of selling a produce company. How would, say, a grower/shipper prepare for the process?
Joel Montminy: Anyone contemplating selling their produce business in today’s market should understand that preparation is key, and there are no shortcuts to maximizing outcome. Parties that think they can wing it on brains and personality alone are at a severe disadvantage. In this regard, a grower/shipper might want to take the following steps at a minimum:
- Get audited or reviewed financial statements or a sellers Quality of Earnings Report;
- Get internal books and records in order (for all relevant entities) with counsel;
- Address and ring fence any potential contingencies or liabilities;
- Build well thought out financial projections that are bottoms up and defendable;
- Assemble the deal team in advance of the process (e.g., investment banker, deal lawyer, accounting, and tax advisors).
Q: Can you walk me through some of the specific aspects of orchestrating a potential sale?
JM: We utilize four primary steps in our sale process, all of which play out in sequencing over what is typically a six to eight month period.
The first stage is “Due Diligence,” which involves reviewing the historical financial results and growth prospects, developing and refining the financial forecast, gathering operational and legal due diligence materials, analyzing structural considerations including tax planning and accounting issues, and reviewing tactical and strategic considerations.
The second stage is “Marketing,” wherein we prepare marketing materials that highlight individual attributes that might appeal to specific buyer/investors, identify and screen buyers/investors, prepare management presentation and coach management, proactively identify issues and develop mitigants, conduct a controlled process with strict guidelines, and minimize business disruption.
The third stage is “Bid Evaluation.” It involves comparing and analyzing bids and considering corporate governance and the ongoing roles of shareholders.
The fourth stage is the “Negotiation.” This stage involves obtaining the best possible price and terms and structure, advising on tactics, negotiating favorable agreement terms, the appropriate position for all shareholders, and last but certainly not least, managing for the 11th hour surprise that can come.
Q: What are some of the pitfalls that might derail a negotiation?
JM: Generally speaking, deals fall apart for one of four reasons. The first is a catastrophic shock to the economy or market, such as 9/11 or the Collapse of Lehman Bros and AIG. These rare events can completely freeze and derail M&A activity for weeks and even months. The second is that the seller has a meaningful and potentially long-term deterioration in their financial performance. The third is that the acquirer uncovers something materially different or problematic during due diligence, versus what was presented, that dampers their interest level. The fourth is that the acquirer loses internal capital and overall appetite to close due to things like another strategic mandate taking priority or changes in their financing.
Without getting too specific, we have found that when a seller gets personally invested in transaction specifics it is detrimental to the process. In any M&A transaction, there are a myriad of hurdles to overcome and points to be negotiated. If sellers feel personally slighted by potential issues, that changes the conversation and leads to emotional and oftentimes unnecessary decisions. There will always be contentious issues, lively debates, and last minute negotiations in any transaction process.
At the end of the day, deals are most successful when there is an overarching fair process involving professionals who know the M&A “rules,” rational and reasonable counter-parties, and an element of trust—the latter being the most critical when issues come to a head. An experienced advisor who does this every day will objectively assess, address, and advocate, which leads more often than not to the desired outcome.
While there may be room for error in a number of respects, the rewards of successfully executing a sale or orchestrating a private equity investment can far outweigh those risks—provided a seller is aware, prepared with the right financial advisors and services, and is prepared to strike while the iron is hot.
To learn more about private equity’s role in the fresh produce industry, interested parties can see and hear from Joel—alongside panelists Ferrell Daste, Jay Pack, and moderator Robert Lambert—at the M&A educational session at this year’s Viva Fresh Produce Expo in San Antonio. The session, to be held Friday, April 6, from 8:45 to 9:30 a.m. at the JW Marriott Hill Country Resort and Spa in San Antonio, Texas, promises insights into the role of private equity in our industry and how it is changing the face of business growth, acquisition, and innovation in produce.