WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has imposed sanctions on five produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a press release, the following businesses and individuals are currently restricted from operating in the produce industry:
- Alpha Omega Produce Inc., operating out of Wellington, Florida, for failing to pay a $28,177 award in favor of a Tennessee seller. As of the issuance date of the reparation order, Marco A. Spataro was listed as the officer, director, and major stockholder of the business.
- Jose D. Pena Tamez, doing business as Pena Brothers Produce Distribution, operating out of Dandridge, Tennessee, for failing to pay a $10,577 award in favor of a Florida seller. As of the issuance date of the reparation order, Jose D. Pena Tamez was listed as the sole proprietor of the business.
- Veracity Produce LLC, operating out of San Antonio, Texas, for failing to pay a $23,816 award in favor of a Colorado seller. As of the issuance date of the reparation order, Andrew J. Blakeman and Ramiro Ruiz, Jr., were listed as members of the business.
- Border Produce Services LLC, operating out of McAllen, Texas, for failing to pay a $2,460 award in favor of a California seller. As of the issuance date of the reparation order, Arturo J. Garcia was listed as a member of the business.
- Azteca International Produce LLC, operating out of McAllen, Texas, for failing to pay an $83,396 award in favor of a Texas seller. As of the issuance date of the reparation order, Luc Delorme was listed as a member of the business. Another principal of the business at the time of the order was Hilda Rivera. She has challenged her responsibility connected status.
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 suspend the license or impose sanctions on an unlicensed 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.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. PACA staff also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
VIRGINIA BEACH, VA - After recently divesting 21 of its stores, Farm Fresh is restructuring its workforce, with some sources reporting that the chain is laying off 1,000 of its employees, or about one-third of Farm Fresh’s current employee count. The Virginia Employment Commission recently listed the layoffs. The agency’s website hosted the Worker Adjustment and Retraining Notification (WARN) Notices.
Parent company SuperValu recently announced that it would be selling 21 of its Farm Fresh banner stores to Harris Teeter, Kroger, Mid-Atlantic Division, and Food Lion; SuperValu implied it had intentioned to seek buyers for the other locations. In the wake of the announcement of the purchased stores, a newer announcement revealed that 11 Farm Fresh stores would feel the effects with 1,000+ layoffs located in the Hampton Roads and Richmond, according to WVEC. Now, the company is reportedly letting another 1,000 employees go, according to Southside Daily. The news outlet reported that the total of let-go employees is estimated at 3,100.
“We continue to work with the buyers of the 21 stores to ensure a smooth transition and expect them to offer positions to many Farm Fresh employees,” SuperValu's External Communications and Public Relations Manager Michael Wilken wrote in an email, according to Southside Daily. He added that eligible employees were likely to receive severance and “job transition support.”
According to Virginia WARN, the number of employees who will be let go from each location on May 14th, in this most recent round of layoffs, is as follows:
- 69 employees: 521 Laskin Road, Virginia Beach
- 58 employees: 1385 Fordham Drive, Virginia Beach
- 94 employees: 2058 S. Independence Blvd., Virginia Beach
- 86 employees: 799 Chimney Hill Shopping Center, Virginia Beach
- 71 employees: 4876 Princess Anne Road, Virginia Beach
- 134 employees: 2110 Great Neck Square Shopping Center, Virginia Beach
- 71 employees: 4001 Virginia Beach Blvd., Virginia Beach
- 98 employees: 1069 Independence Blvd., Virginia Beach
- 92 employees: 2129 General Booth Blvd., Virginia Beach
- 77 employees: 1615 General Booth Blvd., Virginia Beach
- 88 employees: 928 Diamond Springs Road, Virginia Beach
- 104 employees: 230 E. Little Creek Road, Norfolk
- 65 employees: 201 E. Berkley Avenue, Norfolk
- 78 employees: 1200 N. Military Hwy. Norfolk
- 81 employees: 730 W. 21st St., Norfolk
- 94 employees: 309 S. Battlefield Blvd., Chesapeake
- 58 employees: 701 N Battlefield Blvd suite A, Chesapeake
- 82 employees: 1620 Cedar Rd #100, Chesapeake
- 78 employees: 1464 Mt. Pleasant Road, Chesapeake
- 85 employees: 1400 Kempsville Road, Suit 109, Chesapeake
- 88 employees: 115 Norge Lane, Williamsburg
- 88 employees: 4511 John Tyler Hwy., Williamsburg
- 69 employees: 460 Wythe Creek Road, Poquoson
- 92 employees: 353 Chatham Drive, Newport News
- 100 employees: 4000 Victory Blvd., Portsmouth
- 80 employees: 3675 Bridge Road, Suffolk
- 95 employees: 1401 N. Main Street, Suffolk
- 100 employees: 1282 Smithfield Plaza, Smithfield
- 77 employees: 6500 George Washington Memorial Hwy., Grafton
- 87 employees: 7254 George Washington Memorial Hwy., Hayes
- 84 employees: 2320 E Main Street, Richmond
- 77 employees: 1459 Armory Drive, Franklin
- 82 employees: 30 Towne Centre Way, Hampton
- 102 employees: 2190 Coliseum Drive, Hampton
- 111 employees: 227 Fox Hill Road, Hampton
- 70 employees: 608 E Mercury Blvd., Hampton
For more fresh produce industry news, keep checking back with us at AndNowUKnow.
CARMEL-BY-THE-SEA, CA - Gathering around a table, enjoying a fantastic meal and good conversation, is one of my favorite pastimes. Food as sustenance is great, but as a vehicle for storytelling, innovation, and creativity—its potential is immeasurable. One of those artists creating wonder through food is Chef Todd Fisher, who recently set up shop in The James Beard House to cook the meal of a lifetime.
“Cooking at the James Beard House has truly been a dream of mine since I first worked in fine dining restaurants. I remember buying my first cookbook about sauces to learn more and increase my kitchen IQ,” Chef Todd tells me. “The book I bought had a gold seal on it for an award of excellence from the James Beard Foundation (JBF). And, although I didn’t know exactly who or what the JBF was, that gold seal resonated with me and would be an inspiration for what has been my entire career.”
Bringing West Coast flavor to the East Coast dinner table, Chef Todd Fisher, Founder VP of Culinary Operations for Seventh & Dolores Steakhouse in Carmel-by-the-Sea, California, cultivated a masterpiece of a menu with the help of Chef de Cuisine Jeremiah Tydeman, Chef Danny Leach, and Pastry Chef Adam Wulf, who calls Seventh & Dolores home as well. The catalyst for cooking at the JBH came from a strong desire of Chef Todd’s: to receive a James Beard Nomination for Seventh & Dolores. As Chef Todd’s team researched the possibility of being recognized, the invitation to cook at the house was presented.
“The greatest highlight was standing in the middle of the kitchen hoisting a glass of sparkling wine in celebration of the exceptionally-executed dinner,” Chef Todd says. “Simply walking into the kitchen and standing on the culinary hallowed ground was inspiring, then to stand there knowing how many chefs had stood there before was incredible.”
Now, you are probably wondering what the menu was comprised of and, believe me, that was my first question as well. From the Niman Ranch Steak Tartare with Beef Tendon and Truffles to Kampachi with Duda Farms Celery, Capers, Chervil, Meyer Lemon, Pink Peppercorns, and Fried Anchovy, and a dish with Big Sur Salt and Cultured Butter-Roasted Red Abalone, the dinner seemed flavorful and flawless. To see the full menu, click here.
“The multi-course menu was designed around my personality and the team that made the trip to New York. The goal was to showcase the uniqueness of Seventh & Dolores and Folktale Winery & Vineyards which brought wine pairings to the table. I created a menu that told the story of the West Coast and the region we live in,” Chef Todd reflects. “It was also important to me to showcase the long-standing relationships I have with my partners like Duda Farm Fresh Foods and Niman Ranch.”
As for produce, Chef Todd envisioned fresh produce’s role in the dinner the same way he does every dinner.
“Being a chef in California, and in Monterey County especially, we have the best produce. So my philosophy of incorporating fresh produce was exactly the same. Use the best, serve it simply, and let it shine!” he tells me. “This event was a dream come true, a dream that took a tremendous amount of dedication to my trade, a lot of hard work, long hours, and a ton of fun and experiences that I wouldn’t change. The experience has afforded me two very significant lessons. One, you can’t do it alone, it took a team to make this dream a reality, and I am fortunate to have a great team around me. Second, the real work has only just begun, the bar has been raised, the goal of a James Beard Nomination and award has not been achieved, so we will continue to strive for excellence and be better today than we were yesterday and better still tomorrow."
So, if that didn’t whet you palate, I can’t imagine what could! Want to taste it yourself? Chef Todd will be recreating the dinner at his Seventh & Dolores restaurant on April 4th. Tickets are $155 plus tax and gratuity. Capacity is only 80 seats. Passed Canapes will be at 6:00-6:45 PM, and then guests will be escorted through the kitchen to their tables with dinner at 7:00 p.m.
Congrats, Chef Todd, on this amazing achievement and the exciting road ahead that we are all excited to follow you down!
PARAMOUNT, CA - Mexican supermarket giant Grupo Comercial Chedraui—parent of U.S.-based Bodega Latina Corporation—has announced plans to acquire Texas Hispanic grocery chain Fiesta Mart—an acquisition that would create one of the largest Hispanic-focused supermarket companies in the U.S., operating a total of 122 stores across California, Arizona, Nevada, New Mexico, and Texas, and earning revenues of approximately $3 billion USD.
“The acquisition of Fiesta allows us to meaningfully expand into Texas via an established, well-known supermarket operator,” noted Carlos Smith, President and CEO of Bodega Latina, in a press release. “Through the combination of the strengths of our two organizations, we will be well positioned to significantly accelerate our vision of efficiently offering high-quality products at the lowest possible prices. We believe this transaction will be beneficial for all of our stakeholders, including customers, suppliers, employees, and vendors. We look forward to welcoming Fiesta's talented employees and working together to create the premier Hispanic grocery retailer.”
The merging companies noted, in a joint press release, that over 50 percent of the growing U.S. Hispanic population resides within the five states in which the company operates, and noted that the merger of these high-profile Hispanic supermarket chains would further enhance the customer shopping experience via improved pricing, quality, and customer service.
“Combining the strengths of Bodega Latina with those of Fiesta will accelerate the evolution and growth of Fiesta through combining the parties’ scale, geographic reach, talented teams, and market knowledge,” Sid Keswani, CEO of Fiesta Mart, said. “Our team members are excited about becoming part of the Bodega Latina family and continuing to grow the combined company.”
José Antonio Chedraui Eguía, CEO of Chedraui, also noted that the acquisition is a major step for Chedraui as the company looks to further expand its reach throughout the U.S.
“We are excited about the combination of Bodega Latina and Fiesta, which further expands our U.S. footprint,” said Chedraui Eguía. “Grupo Comercial Chedraui is committed to growing our U.S. business both organically and through acquisition.”
The acquisition is expected to close early in the second quarter of 2018, and Fiesta stores are expected to continue to be operated under their own banner.
For more fresh-focused retail news, keep reading AndNowUKnow.
LEAMINGTON, ON - NatureFresh™ Farms’ General Manager, John Ketler, announced that the company’s newest greenhouse expansion is slated for later this year in Leamington, Ontario. Construction of a new 32-acre greenhouse facility will commence this summer, increasing the team’s presence in the tomato category in 2019, when production is scheduled to begin.
The new facility will house a variety of tomato crops, including TOMZ® Snacking Tomatoes, Tomatoes-on-the-Vine, and Beefsteak Tomatoes. The range of tomato varieties are to be grown using supplemental lighting, allowing for year-round production of fresh, Canadian-grown tomatoes, according to a press release.
NatureFresh Farms expanded its greenhouse production into the United States in 2015 with the construction of a 45-acre facility in Delta, Ohio, where it also grows TOMZ® Snacking Tomatoes, Tomatoes-on-the-Vine, and Beefsteak Tomatoes, but using High-Pressure Sodium (HPS) lighting, allowing year-round availability of Ohio-grown Tomatoes.
With supplemental lighting and other innovations being launched in the new facility, the company said that its new Leamington greenhouse will be equipped with the same state-of-the-art growing technologies as seen in Ohio.
“The first full growing season in our Ohio greenhouse has been very successful so far, so with the same technology that we use in Ohio being implemented in our new Leamington greenhouse, we expect similar success,” said Matt Quiring, Executive Retail Sales Accounts Manager. “We should see higher production, greater efficiency in the growing process, and consistently high-quality products from our new Canadian greenhouse.”
This latest expansion will mean that NatureFresh Farms will be growing flavorful, high-quality tomatoes across 90-plus acres of greenhouses, and said that it looks forward to further development as a leader within the industry as it continues to meet increased market demands within the tomato category.
CASTROVILLE, CA - While it is no secret that California has experienced a deluge of strong storms, Ocean Mist® Farms cautions retailers to expect a delay on artichokes. Artichoke lovers eager to get their hands on Ocean Mist Farms Frost Kissed® artichokes, a “limited-edition” flavorful variety only available when the temperature drops below 32 degrees, may wait a little longer than anticipated due to weather conditions across the state of California, our reporting on which has been ongoing.
“In mid-February, both of our growing regions in Coachella and Castroville, California, experienced heavy frost followed by rain. These two successive weather events have caused not only the frosted appearance but also has reduced supply,” explained Dale Huss, Vice President of Artichoke Production.
Though this limited-quantity production means that there will be fewer artichokes available for purchase in stores, the most ardent of artichoke shoppers should still be able to find some chokes in time for the Easter Holiday, according to a press release.
“Unfortunately, this year, artichoke availability is severely limited at a time when there are usually good quantities,” commented Diana McClean, Senior Director. “Typically, we launch an annual artichoke consumer promotion late March or early April and align our messaging to inspire consumption around the Easter holiday. This year, however, we are postponing the launch until artichoke conditions recover.”
Ocean Mist hopes to have quality artichokes available in the next few weeks, so long as the frost stays at bay. And, Huss said, “Once the weather situation smooths out, we anticipate solid supplies for the rest of the year.
To follow crop supply and quality in our ever-changing industry, keep reading AndNowUKnow.
STILLWATER, MN - Tulips are not the only things returning this season. SuperValu has announced plans to return to its 3900 Industrial Road, Harrisburg, Pennsylvania, location, as it invests $69 million into the wholesale distribution center that will serve Northeastern customers. While the company announced in 2008 that this same distribution center would close by 2010 in an effort to consolidate into a Lancaster County facility, the new announcement of its reopening was made by Governor Tom Wolf.
The reopening of this distribution hub, which is nestled off Interstate 81 and next to the Norfolk Southern intermodal railyard, will hire 350+ people over the course of the next three years, a necessary move as the $16 billion in annual sales that the company currently has requires more space and people to accommodate its growth.
After selling the property for $30.3 million in 2008 to a private equity firm, the company purchased the 750,000-square-foot distribution center for a whopping $37.1 million last year, according to Dauphin County deed records. And after the purchase was completed, the company began renovation of the facility to begin shipping operations.
"Shipping for certain departments has already begun with additional departments coming online throughout the year," said External Communications and Public Relations Manager Mike Wilken, according to Central Penn Business Journal.
Minnesota-based SuperValu has gained funding from the Department of Community and Economic Development, including a $740,000 Pennsylvania First grant and a $166,500 allotment from WEDnetPA for employee training.
The new deal was facilitated by the Governor’s Action Team, professionals dedicated to Pennsylvania’s economic development who report to the governor.
"This speaks to the strength of the Harrisburg market as a distribution hub," said President and CEO of the Harrisburg Regional Chamber and Capital Region Economic Development Corp Dave Black, who added that this decision by SuperValu points to the region’s economic recovery. He expressed that, after economic trials 10 years ago, the region is seeing many businesses returning and investing in new facilities, including distribution centers like that of SuperValu’s.
The company currently distributes to 3,300+ stores throughout the country—3,100 of which are independent and franchise grocers, and 200 of which are grocery stores operating under any of the following banners: Cub Foods, Hornbacher’s, Shop ‘N Save, Shoppers, and Farm Fresh, which saw 21 stores recently depart.
For more fresh produce industry news like this, keep checking back with us at AndNowUKnow!
OXNARD, CA - After the success of Mission’s Small but Mighty avocados in conventional bags, the company announced the launch of the line in organic format. The organic line will be a facsimile of the conventional line with the added attraction of Mission’s signature purple straps to signal to consumers that the product is organic. The Organic Minis are ~2.5 oz and perfectly-sized for a sandwich, smoothie, or stand-a-lone snack.
“This Organic Minis bag holds true to our initiative to efficiently sell what the tree produces,” said Brent Scattini, Vice President of Sales and Marketing. “By creating this package for small organic fruit, it gives us the opportunity to develop a retail organic bag that addresses a consumer need while optimizing our fruit utilization from the tree.”
The Organic Minis are supplied out of Mexico and California, and Mission will provide additional product out of Peru as sales ramp up in summer. Available in 2-pound value bags with 8-10 minis, and 6-count bags, the avos are Heart-Certified by the American Heart Association®, according to a press release.
“Organic avocado trees have always produced these extra small avocados, but they’re typically packed in bulk for foodservice. With the advent of healthy-snacking trends, to-go packaging, and 100-calorie packs, we knew there was a need for a value-added small organic avocado,” said Megan Berenbach, Organic Category Manager. “Our Organic Minis bag adds to the options that we can present to our retail customer base.”
To stay in the know on progress on the organic front, keep reading AndNowUKnow.
BAKERSFIELD, CA - Reaching a milestone year in 2018 is one of the major players in California’s date industry, Atlas Produce. Celebrating its 15th anniversary this year and having recently launched the company-wide brand refresh Fresh Energy™ by Caramel Naturel®, Atlas is primed to elevate its date program across retail produce departments with a program full of new highlights and initiatives.
Founder and President Robert Dobrzanski joins me to discuss the growing business and what we have in store for the new brand and the year ahead.
“We rolled out our new Fresh Energy by Caramel Naturel label in late 2017, and as we gear up in June and July for the upcoming 2018 growing season, we will be fully integrating the rebrand and investing in on our retail partnerships,” Robert tells me. “In addition, Fresh Energy will be focusing our messaging on our growing regions in Coachella, California, as a key selling point for the new brand. If you look back 25 years ago, Coachella was a blip on the map for the traditional consumer, but now everyone gets excited about the area. Between the booming popularity of the Coachella Music Festival and the growth of agriculture in the region, we have been able to direct our marketing efforts at millennial consumers who now recognize Coachella for a wealth of reasons.”
Retailers aiming to capture sales in the date category can also get excited about new merchandising solutions soon to come from the date powerhouse. Additionally, Fresh Energy labels were designed to pop on the shelf and bring a vibrant, eye-catching aesthetic to the specialty produce segment.
“Our date sales have been on an upward trajectory since the category began to make headway in mainstream consumer baskets, and we have grown our portfolio to include a variety of offerings to address the flavor demands of the consumer spread,” Robert shares.
Under the Fresh Energy label, the program now includes Whole and Chopped Medjool Dates, Golden Dates, and Date Coconut Rolls as well as Date Almond Rolls, Pitted Deglet Noor, and Organic Whole Medjool Dates. Fresh Energy’s dates are all jumbo in size and have some of the best flavors in the industry.
“Dates have gone from a seasonally promoted item to a year-round category, thanks to consumer demand,” Robert adds. “This will really be a big year for us. In 2018 we will be revamping our website as well and doing some special promotions with retailers. We have had such great success with Caramel Naturel and are extending that same commitment and value to our partners with the Fresh Energy rebrand.”
Congratulations, Robert, on your 15th anniversary year and the continuing success of your new Fresh Energy program!
SEATTLE, WA - In an effort to further tap into the audience that only plant-based food can appease, Starbucks announced plans to expand its vegan offerings. At the Seattle Center, Starbucks held its annual shareholder meeting, where the company’s COO, Rosalind Brewer, revealed the coffee chain’s plans to grow its vegan line.
“We have a line that we’d love to share with our customers later this year, so it is in our plans,” Brewer said. “We know our customers ask us that repeatedly, and we’ll be responding.”
The move, according to Inverse, was sparked by Compassion Over Killing (COK), an animal rights group that was at the shareholder meeting.
“Starbucks brightened our mornings when it became one of the first national coffee chains to pour out non-dairy milks,” said Jonathan Rosenberry, COK's Video Production Manager and a shareholder in Starbucks. “But millions of consumers are seeking hearty plant-based foods to enjoy with their coffee—and that’s where Starbucks’ menu still doesn’t live up to the buzz.”
Seattle will see a lot of mobile ads this week, after COK released them to align with the event. The ads are targeting Seattle’s 200,000 people, and feature Jane Velez-Mitchell, a journalist and animal rights activist.
Among other options, the company has released plant-based breakfast items, sweet and savory snacks, and a vegan lentil salad since its first launch of vegan options in 2015.
“Yet, while CEO Kevin Johnson has stated the company’s plan to boost slumping sales by offering more plant-based options, Starbucks has yet to offer filling vegan dishes across the country,” said COK.
Vegan options are aplenty these days, and Starbucks’ recent addition to its line will be right in line with others, including McDonald’s and Green Chef.
How will other chains react to the evolving Starbucks lineup? Will we continue to see a spike in interest and vegan offerings from diverse members of the industry? AndNowUKnow will continue to report.