MINNEAPOLIS & VIRGINIA BEACH, VA - SuperValu announced that it has entered into three separate definitive agreements to sell 21 of its 38 Farm Fresh Food & Pharmacy (“Farm Fresh”) stores for ~$43 million cash; with some going to Harris Teeter (an appendage of Kroger), Kroger Mid-Atlantic Division, and Food Lion (an appendage of Ahold Delhaize). SuperValu will continue discussions to sell the remaining 17 Farm Fresh stores.
“Over the past two years, we’ve been working diligently and rapidly to transform our business to become the wholesale supplier of choice for grocery retailers across the United States,” said Mark Gross, SuperValu’s President and CEO in a press release. “In 2016, we sold Save-A-Lot and its network of approximately 1,350 retail locations. Last year, we acquired Unified Grocers and Associated Grocers of Florida, which when combined with substantial organic growth, added more than $5 billion in run rate sales to bring our core wholesale business to nearly $13 billion. Exiting the Farm Fresh banner will enable us to allocate greater resources and energy toward the strategic growth of our wholesale business. We also continue to aggressively pursue other important initiatives, including the monetization of real estate through sale leaseback transactions and cost reduction across the company. We are confident our efforts are driving growth and enhancing our competitive position.”
Gross continued, “This decision was not taken lightly given the impact on our employees and the communities we serve, but we strongly believe this decision is in the best long-term financial and strategic interest of our business. Our leadership team and board of directors remain committed to taking proactive steps to transform our business and drive stockholder value.”
All in all, the purchases are as follows:
- Ten stores being sold to Harris Teeter, including six in-store pharmacies and three fuel centers
- Eight stores being sold to Kroger Mid-Atlantic Division, including eight in-store pharmacies and four fuel centers
- Three stores being sold to Food Lion, including three in-store pharmacies
“We are thankful for the tremendous service our employees have delivered at Farm Fresh through the years and are grateful for the opportunities we’ve had to share in the lives and special events of our customers and employees across the Hampton Roads, Richmond, Williamsburg, and Elizabeth City communities,” said Anne Dament, Executive Vice President, Retail, Marketing, and Private Brands. “We are working with the buyers to ensure a smooth transition and we expect them to offer positions to many Farm Fresh employees. In addition, we plan to offer eligible employees severance and other job transition support.”
The transactions, which are expected to close in May 2018, subject to customary closing conditions, were unanimously approved by SuperValu’s Board of Directors. SuperValu pharmacies not included in the agreement will have their prescription and pharmacy files transferred to Rite Aids and CVS Pharmacies in the region.
According to Daily Press, Kroger plans to invest $30 million in renovations for the stores—updating the newly-acquired locations with fuel centers and pharmacies.
To stay in the know on all big industry agreements, stay with us at AndNowUKnow.
SUNBURY, PA - Weis Markets finished its fiscal 2017 year on a high note. Among its achievements was a record sales number during the year, including a 2.2 percent increase in the fourth quarter alone.
"In 2017, we achieved record sales of $3.5 billion and generated our 15th consecutive quarter of increased comparable store sales. During this time, we also worked to efficiently integrate 44 newly acquired stores," said Jonathan Weis, Chairman and Chief Executive Officer, in the financial release. "We have done much to position our company for future profitable sales growth."
Approximately $1.8 million of the difference between fiscal 2016 and 2017 was due to an additional week in 2016, according to the release—while the remainder of the difference in operating income was due to the company's promotional programs and price investments, as well as continued retail deflation combined with cost inflation and assimilation of 44 stores acquired in 2016.
Highlights for the company’s 13 week fourth quarter, which closed on December 30, 2017, included:
- Sales were $883.7 million compared to $925.1 million for the fourteen-week period ended on December 31, 2016
- Fourth quarter sales increased 2.2 percent while comparable store sales were up 1.2 percent when adjusted for the extra week in 2016
- The company's net income increased 54.7 percent to $63.7 million
- Earnings per share totaled $2.37, primarily driven by a $49.3 million decrease in deferred income tax due to the U.S. Government enacting the Tax Cuts and Jobs Act (Tax Reform)
- Fourth quarter operating income was $22.3 million compared to $27 million for the same period in 2016
For the latest in financial and other key reports from the buy-side of our industry, continue to follow AndNowUKnow.
PAYSON, UT – Consumers want convenience, but not at the cost of health. With the convergence of both high in consumer demand, retailers looking to offer home chefs a quick solution to cooking fresh vegetables will want to keep Temkin International’s latest innovation top of mind. This year, Temkin International, a leading producer of flexible film packaging, announced an innovative new smart label steamable technology, U-Vent™, providing consumers a better way to microwave.
According to a press release, U-Vent is different from other microwave technologies because it provides a leak-free seal—available for pouches, rear-weld bags, flat bags, and roll stock—perfect for storage. U-Vent is also temperature activated to relieve internal bag pressure, which allows steam to build inside and the fresh produce to fully cook without concerns that the seal will burst. U-Vent can even be micro-perforated to a specific O2 flux to function for both modified atmosphere control and as a microwave vent.
Not to mention, U-Vent is efficient, cost-effective, and safe thanks to technology removing the need to pierce or cut the steamer bag before heating and is produced with materials that readily accept printing inks.
Since 1980, Temkin International has provided customers with packaging products and manufactures premium custom and stock flexible film packaging that is fully adjustable for material, size, and print.
Perfect for the produce aisle and cross-merchandisable, Temkin International’s U-Vent is sure to fly off of retail shelves.
For more news on the latest in the produce industry, stay tuned to AndNowUKnow.
SELAH, WA - With its latest partnership, Rainier Fruit is flexing both its business prowess and its organic cache. The produce of organic and conventional apples, pears, cherries, and blueberries announced a new partnership with Wanderlust—the world’s largest producer of yoga lifestyle events.
“For generations, we focused on growing great fruit. Today, our family and growing partners are focused on more than growing fruit; we are focused on growing healthy families and communities and making a commitment to support positive lifestyles that will influence generations to come,” said Mark Zirkle, CEO of Rainier Fruit, in a press release. “When we talk about ‘Wholesome to the Core,’ we’re talking about more than just our fruit, we’re talking about an entire philosophy that includes our sustainable growing practices, a commitment to organics, being of service to our employees, contributing to our community, and growing nutritious fruit that fuels the future to help people reach their goals and live happy, healthy lives.”
Rainier Fruit will be the presenting healthy lunch sponsor at 24 of the Wanderlust 108 events throughout North America. The company also noted, in its press release, that Rainier Fruit is, in addition to being a farming and food company, an active lifestyle brand that partners with the Boston Marathon, Portland Marathon, Charleston Marathon, and the Mesa-Phoenix Marathon. And with its newest partnership, Rainier Fruit plans to further expand the active-lifestyle focus of the company, focusing on universal fitness activities like running and yoga that collectively reach millions of consumers.
“We’re excited about this new relationship,” says Andy Tudor, Vice President of New Business Development at Rainier Fruit. “Our mission is living Wholesome to the Core, which is about cultivating your best self and living your best life. The whole focus of yoga and the mission of Wanderlust is in total alignment with our mission and our healthy products including our expanding organic program making this a great fit.”
The yoga community, Rainier Fruit noted in its press release, is a powerful demographic that is highly educated and brand loyal—with a focus on overall health and fitness. 82 percent of the more-than-80 million yoga practitioners prefer organic and natural foods, and yoga is also one of the fastest growing sports.
“Rainier Fruit is second-to-none when it comes to high-quality organic fruit, and their commitment to the environment through conservation and sustainable growing practices makes them an ideal partner for Wanderlust,” says CEO Sean Hoess of Wanderlust—who noted the two company’s shared passion for creating for high-energy, high-impact events that build community around sports and create a focus on healthy choices.
In addition to on-site activation at Wanderlust 108 events, the company noted, Rainier Fruit will work with market retailers to establish ad promotions and communication tools that help the more than 2000 attendees at each event find Rainier Fruit in their local stores.
For more fresh produce news, stay tuned to AndNowUKnow.
MISSION, TX - Viva Fresh Produce Expo has announced that this year’s educational sessions will consist of a lineup focused on aiding attendees in proactively capitalizing on trends currently shaping the produce industry, particularly in the Tex-Mex region.
“We’re excited about the diverse range of topics, as well as the quality of our speakers,” said Melinda Goodman, Education Committee Chair. “Our main focus is to bring in the right thought leaders to address the challenges facing our industry and provide insight on how attendees can best position themselves for lasting success.”
Topics broached by this year’s Viva Fresh Education Committee will include the following:
- Mergers and Acquisitions: The Game Changing Lottery of Private Equity and Big Business Dollars | Hosted by AndNowUKnow’s very own Robert Lambert, this panel will discuss benefits, implications, and processes surrounding mergers and acquisitions with respect to the influence of private equity firms. Panelists include Jay Pack, former owner and CEO of Standard Fruit & Vegetable Co., Inc.; Joel Montminy, Founder and CEO of CREO/Montminy & Co.; and Ferrell Daste, President of Agriglobe Capital.
- How Amazon and Technology are Fueling a New Food Retailing Paradigm | Tom Edwards, Chief Digital & Innovations Officer at Epsilon and expert on emerging technology and its influence consumer behavior, will discuss the impact of Amazon and technology in general on the future of fresh produce retailing and purchasing habits, forcing attendees to confront the question, “What lies ahead?”
- The Multi-Generation Marketplace: How it’s Changing the Face of Produce Consumption | Alongside Phil Gwoke, Generational Expert and Consultant at Bridgeworks, attendees are invited to ponder how and why consumer perceptions and motivations differ generation to generation, how these disparities impact the produce industry, and how grower, packers, and retailers may capitalize on patterns.
This year’s educational series on the 6th of April will take place at the JW Marriott San Antonio Hill Country Resort & Spa as part of the 2018 Viva Fresh Expo, which will be held April 5th through 7th. To stay in the know on produce industry events, keep reading AndNowUKnow.
CENTRAL CALIFORNIA - When I was a kid the only thing I knew of pomegranates, was that they grew outside my grandmother’s house in Sacramento, California, and had a sweet but tangy flavor that seemed foreign to me for years. Jump ahead just a few decades and the pomegranate is one of the most widely coveted fruits in the world.
Joining me to talk about the evolution of the fruit for The Wonderful Company is Adam Cooper, Vice President of Marketing, who touches on the growth of the category and the operation’s blossoming POM Wonderful business.
“We currently have 9,000 acres of Wonderful Variety pomegranates in Central California. During fresh pomegranate season—running from October through January—consumers can also purchase POM POMS pomegranates arils, sometimes beyond the fresh season,” Adam shares with me, adding that POM POMS are ready-to-eat pomegranates, which allows the company to reach consumers looking for the sweet tart taste of its Wonderful variety pomegranates while also looking for convenience. “POM Wonderful is one of the largest growers and producers of fresh pomegranates in the United States.”
The Wonderful Company wrapped up its Wonderful POM POMS season at the end of January with the brand’s biggest season ever, reflecting a +37 percent increase in shipments compared to last season (2016-2017). The key to POM POMS success, Adam notes, includes cross-merchandising with POM Juice and keeping product in stock at primary and secondary display locations. When paired with berries and other fresh cut fruit, POM POMS help The Wonderful Company attract new customers and generate excitement.
“Throughout the season, The Wonderful Company promotes POM POMS with a multi-million-dollar marketing campaign that includes advertising, FSIs, in-store displays, online promotions, PR, and cross-merchandising efforts across our family of products,” Adam tells me. “Our Crazy Healthy campaign which runs in print and broadcast runs throughout the year and elevates awareness for both juice and POM POMs.”
In addition, the company launched four packs of 4.3 oz. cups in Costco that brought in new consumers. Because of the company’s success with POM POMS, POM Juice, and other brands, The Wonderful Company continues to add more and more dollars to the produce department for retail partners.
Current movements in consumer buying behaviors have shown that they are increasingly looking for easy and convenient solutions to better snacking.
“Our POM POMS offer that convenience of our delicious Fresh Pomegranates but in easy on-the-go packaging. POM continues to be uniquely positioned in the produce department, cross-selling our family of products,” Adam says. “When POM POMS cross promote with POM Wonderful 100 percent Pomegranate Juice, consumers can bundle the two products for a grab-n-go, healthy meal.”
POM POMS bins feature both fresh pomegranates and 100 percent Juice, and both include $1 off any two POM Wonderful product coupons on tear pad coupons.
“We focus on reaching consumers in-store where they are looking for convenient, great tasting and healthy fruits, “ Adam shares. “For instance, we merchandise POM Arils with berries in the berry cooler to drive trial. The association in the berry cooler reinforces that POM POMs are perfect for snacking or throwing on simple recipe, just like the other berries. We’ve found retailers get four times the velocity when they merchandise in the berry cooler. The cut-fruit section is also great because they are grab-n-go, healthy coolers and consumers are looking for something healthy, delicious, and convenient.”
Curious to see what The Wonderful Company has in store for its 2018 pomegranate season? Stay tuned to AndNowUKnow for more on this category leader.
MCLEAN, VA - Gladstone Land Corporation has acquired a 176-acre blueberry farm in Van Buren County, Michigan, for $2.1 million, or about $11,900 per acre.
Upon acquisition, Gladstone Land entered into a 10-year, triple-net lease with True Blue Farms, one of the most prominent blueberry growers and marketers in the country, according to a press release.
"This acquisition adds another top-tier farm growing healthy produce to our portfolio," said David Gladstone, President and CEO. "We look forward to continuing to build on our existing tenant-farmer partnerships during 2018. Our current acquisition backlog remains healthy, and we hope to be able to acquire several additional farms that grow a variety of crop types throughout the year."
The property currently consists of approximately 100 planted acres of blueberries and is fully irrigated with access to multiple water sources.
"We are pleased to announce the acquisition of another excellent blueberry farm and to expand our relationship with True Blue Farms," said Joseph Van Wingerden, Senior Associate. "Western Michigan offers fertile growing conditions due to the lake-effect climate and highly-productive soils. We hope to continue expanding our holdings in the region."
While this is the company’s first produce land acquisition of the year, it invested more than $60 million in ag land acquisitions in 2017 alone.
Keep checking in with AndNowUKnow for the latest.
SYRACUSE, UT - There is no better way to start a veggie dish or soup than with onions sautéing in oil, but sometimes the pain of chopping an onion can be a deterrent, even when countered against the complexity of flavor they add to any dish. Luckily, Onions 52 is bringing Sunions™ to the retail fold, with all the richness of an onion, without the tearful pain.
“Sunions is the first truly tearless onion to hit the market. You can cut it and it won’t make you cry. We had one retailer that actually cut the onion and rubbed onion juice on his eyelids and he didn’t cry! This onion is also a very sweet onion that gets sweeter with time as it sits in storage, and we didn’t introduce this onion to the market until it had reached a target level of sweetness. So a combination of a tearless and sweet onion—a rare combination!” said Bob Meek, CEO.
Sunions are already on the market, with shipping having begun in early January. Bob explained that supplies of Sunions have moved well, driven by mainstream media outreach through ABC TV, Huffington Post, Washington Post, The New York Times, and Good Morning America. In store, Onions 52 offers a variety of POS to promote Sunions, and an additional aisle display container rolling out next year. The company recommends that retailers train produce personnel to use the POS material to draw attention to the unique characteristics of the sweet, tearless onion.
“It is not often that a new onion product is introduced. Once consumers try this onion, they buy it again. Being tearless will attract onion consumers that may not normally buy onions, because they don’t want to cry, back to buying onions. These onions will not last long—our season is short—so buy while they last,” Bob exclaims.
To stay in the know on all onion breakthroughs, keep reading AndNowUKnow.
RIVERSIDE, CA - Index Fresh has announced that it is growing its team in the key Ventura growing region, welcoming industry expert Mauricio Jimenez as Ventura Field Representative. In his new role, he will be responsible for working with the field team to build strong relationships with new and existing growers, as well as ensure they receive maximum value.
“Mauricio’s grower relations experience from working with rubus growers has provided him with the necessary background to provide excellent field service for avocado growers in Ventura County,” said Keith Blanchard, California Field Manager, in a press release. “His accurate harvest forecast ability and cultural knowledge will add value to our field services and harvest planning and programs.”
Bringing several years of experience in cultural practices, crop forecasting, and grower relations, Jimenez’s most recent role was Forecasting Specialist in the rubus industry. He completed his bachelor’s degree in Biology at California Lutheran University in Thousand Oaks.
Congratulations to both Mauricio Jimenez and the Index team on this newest step!
BENTONVILLE, AR - The quest for Top Online Grocery Deliverer rages on, and this week Walmart is directly challenging Amazon with its latest expansion. Today, the retailer announced plans to expand its online grocery delivery option from six markets to more than 100 metro areas across the country. This will include bringing the service to over 800 stores by the end of this year, according to a report by CNBC.
“We’re saving customers time by leveraging new technology, and connecting all the parts of our business into a single seamless shopping experience: great stores, easy pickup, fast delivery, and apps and websites that are simple to use,” said Greg Foran, President and CEO, Walmart U.S., in a company press release. “We’re serving our customers in ways that no one else can. Using our size and scale, we’re bringing the best of Walmart to customers across the country.”
For a fee of $9.95 on $30 orders or more, Walmart’s online grocery service touts delivery as soon as the same day. The retailer also employs over 18,000 personal shoppers and counting, specifically trained to select the freshest produce and the best cuts of meat for online grocery customers, in-line with its recent food waste initiatives.
Walmart also announced its Online Grocery Pickup service is now available in 1,200 stores and plans to add 1,000 more by the end of 2018.
“Our commitment goes further than saving customers money,” said Tom Ward, Vice President, Digital Operations, Walmart U.S. “Ninety percent of Americans live within 10 miles of a Walmart store, and we serve more than 150 million customers a week, which gives us a unique opportunity to make every day a little easier for busy families. Today, we’re expanding this promise by helping even more customers save time and money without leaving their homes.”
This week, Walmart also shortened its grocery supply chain by moving into the ag sector with new patents and technology.
With Walmart making aggressive moves on all fronts, will the retailer pull to the front of the grocery pack? AndNowUKnow will continue to report as the story unfolds.