GRAND RAPIDS, MI – This week, SpartanNash released its financial report for the fourth quarter and fiscal year 2017, as well as revealed its 2018 plans to ride the wave of retail growth. After an increase in net sales–driven by growth in the food distribution and organic segments–SpartanNash confirmed plans to invest 50 percent of its tax reform savings into associates and programs in order to leverage itself amongst competitors in the coming year.
“We ended 2017 with the company positioned for growth despite the ever-evolving retail landscape,” David Staples, President and Chief Executive Officer, said in a press release. “During the year, we expanded our food distribution customer base and private brand offerings, diversified our sales channels, continued optimizing certain aspects of our supply chain, and invested in both the Caito management team and our retail store base. While the retail environment remains challenging, we are focused on capitalizing on our growth opportunities and leveraging our differentiated business model to drive sales and profitability. We continue to take actions that we believe will enhance the convenience and value that we provide our customers and continue to see positive results from our investments. To enhance this momentum, we intend to invest approximately 50 percent of our tax reform savings in our associates and programs designed to improve our competitive position.”
Capping off a year of continued progress in its key strategic initiatives, SpartanNash experienced sales growth in food distribution, something Staples attributes to its expanding relationships with existing customers and drive of new business. Other fourth quarter results included:
- Consolidated net sales for the fourth quarter increased $96.0 million, or 5.3%, to $1.92 billion from $1.83 in the prior year quarter
- Gross profit for the fourth quarter of fiscal 2017 was $254.8 million, or 13.2% of net sales, compared to $259.3 million, or 14.2%, in the prior year quarter
- Reported operating expenses for the fourth quarter were $235.9 million, or 12.3% of net sales, compared to $234.6 million, or 12.8% of net sales, in the prior year quarter
- Operating earnings for the fourth quarter were $18.9 million compared to earnings of $24.6 million in the prior year quarter
Fiscal Year 2017 results included:
- Consolidated net sales for fiscal 2017 increased $393.5 million, or 5.1%, to $8.13 billion from $7.73 billion in the prior year
- Adjusted EBITDA for fiscal 2017 improved to $236.4 million from $231.0 million in fiscal 2016, representing 2.9% of net sales in fiscal 2017 and 3.0% of net sales in fiscal 2016
- For fiscal 2017, capital expenditures were $71.0 million, depreciation and amortization expense was $83.2 million and interest expense totaled $25.3 million
Moving into the new fiscal year, SpartanNash is anticipating year-over-year sales growth to continue in the food distribution segment, and is expecting an improvement in retail stores’ comparable sales as it works to position new offerings. SpartanNash will also continue to pilot and test innovative concepts and incorporate the learnings into its retail operations and distribution customer offerings as a means to strengthen its position in the retail running.
To see the full fiscal report, click here. For more news like this, stay tuned to AndNowUKnow.
WENATCHEE, WA - Stemilt is bringing the fiesta to retailers nationwide with its Piñata® apples. The variety is in peak season right now, and here to talk with me about the excitement swirling around the company’s fan-favorite apple is Brianna Shales, Communications Manager.
If you’re wondering how long your store will be able to tap into the fun merchandising opportunities that this apple offers, Brianna tells me that the seasonality for Piñata is going strong and has a long ways to go.
“The apples are harvested in mid-October, and then it runs all the way through June into July. And at that time, we have some really great imported partners in Argentina and Chile. So, we can actually supply retailers nearly year-round with this varietal,” she tells me.
The company is looking to offer something for everyone, with conventional and organic Piñata to catch consumers’ interest. To merchandise festively, the company has a high-graphic box that is adorned with tropical island imagery to pair with the pineapple-like, crisp finish that the apple variety offers. On top of that, consumers can walk away from their local retailers with the Lil Snappers® 3 lb. pouch bag program for kids that showcases the Piñata variety. On top of that, 5 lb. apple-lover bags are available for retailers looking to offer more of the fun variety.
“There’s a lot of opportunity to just fold it into the monthly apple activities at retail. Carry Lil Snappers in a Piñata varietal. Experiment with organics with this variety. And then really just make a big splash about it around that Cinco de Mayo holiday,” she tells me, expanding that Cinco de Mayo is a great opportunity to rev up excitement that this variety offers. “We’re going to be doing a lot of social media activity and digital excitement around that apple as we approach that holiday, so whatever retailers are doing at stores is going to tie in really well with what we are doing to educate and make shoppers aware of the variety nationwide.”
For more details on how you can tap into the fun that Piñata apples offer, tune into the interview above to hear the inside scoop.
AndNowUKnow will keep you updated with the latest industry trends!
CORAL GABLES, FL - It has been a busy few weeks for Del Monte news. Having recently announced its welcoming of Mann Packing into the fold, the company is now investing further into its shareholders with a new share repurchase program on its fresh side.
The Board of Directors for Fresh Del Monte Produce Inc. approved a three-year share repurchase program at yesterday’s annual meeting that will add another $300 million overall to its existing share repurchase.
The company already had an existing three-year repurchasing program of $300 million in place, which is set to expire on July 29, 2018. This new plan for the same amount of the company's ordinary shares will expire on February 21, 2021, according to a press release.
With much in the works, AndNowUKnow will continue to keep you up on all the latest with this and other key players influencing our industry.
TAMPA, FL – When bananas last arrived in Port Tampa Bay it was 1989; pastels were all the rage, everyone had a perm, and cell phones were brick-sized. According to FOX 13, bananas were unloaded by hand in the 1920s, a process which was switched over to trucks and conveyors by the 1940s. Now, after decades away, Chiquita bananas have arrived at the port once again.
"We feel very honored that we have bananas as our first shipment. They are Chiquita bananas," said Raul Alfonso, the Executive Vice President & Chief Commercial Officer at the Tampa Port Authority, to FOX 13. "We want not only the shippers and distributors, but the retailers, the ones that receive the product, to say, 'Hey, this is a great opportunity.' By becoming a gateway, the community is also going to be able to enjoy fresher products at a better cost."
The port is now receiving bananas again, starting with a test run of 3,900 pallets of the fruit, according to the news source, the first shipment since Del Monte pulled out nearly three decades ago.
With hopes to expand offerings as demand for fresh goods along Interstate 4 grows, the source added the port may have pineapples soon.
Councilman Charlie Miranda of Tampa’s District 2, spoke to FOX 13 about his memories of the port in the 1950s.
"It looked dirty. It looked dingy. It looked unacceptable," Miranda said noting that as a hungry youth the port's bananas were ripe for the taking. "I would take the banana, to be honest with you. We would ride bicycles all the way through here to Ballast Point to go fishing."
To stay in the know, keep reading AndNowUKnow.
DALLAS, TX – This week, the Dallas Fresh Food Association (DFFA), a group dedicated to raising the profile of fresh food in North Texas, announced appointments to its 2018 Board of Directors. The association—devoted to showcasing careers, pursuing a food-education agenda, and increasing fresh food consumption—announced the makeup of its new board in a press release, and it also encouraged local North Texas companies and workers to become members.
“The value of having a local association dedicated to serving the DFW area means being able to connect with and train the future leaders of the fresh food industry, while empowering our community to choose more fresh food,” said Dale Long, Association President. “In order to truly impact DFW the way we know it desperately needs is to activate our individual talents together to create hands-on opportunities that make an impact across the very areas that we serve in our businesses.”
The following officers were elected to this year’s Board of Directors:
- President, Dale Long of North Texas Food Bank
- Treasurer, Michael Grinstead of The Grinstead Group
- Marketing, Beth Keeton of DMA Solutions
- Membership, Steve Monson of C.H. Robinson
- Philanthropy, Lucian LaBarba of Ben E. Keith
- Technology, Bobby Grinstead of FreightFlow
The Association also acknowledged many of its founding members—members that brought the DFFA’s mission and values to life in late-2017, including:
- Ben E. Keith
- Del Monte Fresh
- DMA Solutions
- Hardie’s Fresh Foods
- Kroger
- North Texas Food Bank
- Robinson Fresh
- SunFed
- The Grinstead Group
To connect with this group of change-makers and attend the next luncheon, the Association encourages interested parties to email [email protected]. Members are not required to live within or have businesses in Dallas/Fort Worth but are expected to attend the bi-monthly meetings.
For more fresh produce news, stay tuned to AndNowUKnow.
PASADENA, CA – The last 100 days have been full of extra sweetness and sunshine after Cuties and iHeart Radio inspired families to share recipes, DIYs, and family-friendly activities online and on-air in honor of the latest Cuties seasonal campaign. And, this past weekend during Random Acts of Kindness Day, the brand celebrated the finale of its 100 Days of Sunshine campaign with one last hurrah.
“Throughout 100 Days of Sunshine, we shared ways families could spread sweetness at school, at home, or in the community,” said Howard Nager, VP of Marketing and Business Development at Sun Pacific, in a press release. “So, it was incredibly rewarding to see the tables turned and experience how our fans put their own ideas about what sweetness means into action.”
For weeks, the brand tapped into Mario Lopez, Ryan Seacrest, and Bobby Bones’ radio shows and encouraged listeners to share their stories of kindness for a chance to win $500. The brand asked fans to share how they promote kindness in their community through a Cuties radio jingle, sung and mixed by musical collaborators the Jingle Punks, aired every hour on flagship stations, and radio reads from Seacrest and Lopez that directed fans to share small acts of kindness on Facebook and Instagram to win Cuties prizes.
In addition to on-air time, Cuties was featured on iHeart Radio’s mobile app homepage, on outdoor boards in major metros, and online through 30 second pre-roll video ads on iHeartRadio websites. The brand also suggested sweet acts fans could perform with Cuties via stories and videos on Instagram, Snapchat, and Facebook, which were viewed more than 200,000 times in 24 hours.
“Random Acts of Kindness day was the perfect finale to our 100 Days of Sunshine campaign,” continued Nager. “From care packages and cooking meals to driving neighbors to the grocery store and helping those in need, our fans are truly practicing kindness every day.”
The brand’s kindness day takeover kicked off Friday, February 16, with a media blitz on iHeart Radio that exceeded an estimated 35M impressions. On Friday, one contestant was rewarded an extra $1,000 for their sweet act. And online, Cuties rewarded social fans for sharing photos and videos on the national Random Acts of Kindness holiday, February 17.
While the 100 Days of Sunshine just concluded, Cuties will remain in stores through April so the sweetness doesn’t have to end just yet. For more information on 100 Days of Sunshine and Random Acts of Kindness Day, visit CutiesCitrus.com. And for more on what’s shaking up fresh produce, stay tuned to AndNowUKnow.
SAN DIEGO COUNTY, CA - Gelson’s Markets has just the fix for peckish consumers pacing the aisle; after remodeling two of its Southern California-based locations, the supermarket is debuting a tapas bar, new wines, and new beers. The company's Del Mar and La Costa/Carlsbad-area locations will open after the redesign on February 24th and February 25th, respectively.
To ring in the launch of these new tapas areas, the company will offer great deals on beer, wine, and spirits, as well as freebies and samples at the on-site Gelson’s Grill.
In addition to the new wine types, craft beer options, and fun tapas, consumers can enjoy cold-pressed juice available at a kiosk and delicious eats from a seafood and sushi bar at the Gelson’s Del Mar location at 2708 Via De La Valle.
Specifically, upgrades to the La Costa/Carlsbad location sitting at 7660 El Camino Real in Carlsbad include new wines and beers to choose from, tasty tapas to enjoy, fresh salads and sandwiches to bite into, and a Wolfgang Puck build-your-own pizza station so the whole family can join in on the fun.
According to NBC San Diego, Gelson’s President & CEO Rob McDougall thinks the remodels further enhance the company’s pursuits of achieving a “relaxing, multi-sensory experience while shopping.”
McDougall explains that having access to the exciting additions will inspire consumers to try new foods and drinks.
On top of these two re-openings, the company’s Riverside County-based Rancho Mirage store will open doors once more this month.
Will these newly redesigned layouts assist in the company’s consumer engagement and, consequently, boost sales? AndNowUKnow will fill you in with the latest!
WILLIAMSVILLE, NY – Citing the need to restructure “a substantial portion of debt,” Tops Markets has officially announced that it is pursuing financial restructuring under Chapter 11. The company noted in a press release that Chapter 11 bankruptcy protection will offer a path to right the company’s debt-heavy balance sheet and position Tops for continued long-term success.
“Tops has built strong market share and our stores continue to distinguish themselves by offering quality products at affordable prices with superior customer service,” said Frank Curci, Chief Executive Officer, in a press release. “We believe the financing that we received from our noteholders is a vote of confidence in our business. Our operations are strong and we have an outstanding network of stores and a talented team to support them. We are now undertaking a financial restructuring, through which we expect to substantially reduce our debt and achieve long-term financial flexibility. This will enable us to invest further in our stores, create an even more exceptional shopping experience for our customers and compete more effectively in today’s highly competitive and evolving market.”
Tops' announcement follows a week of speculation on the subject of bankruptcy. The company noted that Tops' 169 stores throughout the Northeast will continue to serve customers with no impact to day-to-day operations, and the company expects operations to continue unhindered throughout the financial restructuring process.
“We are continuing to provide our customers the convenience, savings, and friendly service that they expect from us,” added Curci. “Our priorities, values, and commitments to our customers and our communities will not change. On behalf of everyone at Tops, we thank our customers for their continued support and look forward to ensuring that their every need is met. I also want to thank our 14,262 employees and associates for their continued hard work and dedication.”
The Company elected to file for reorganization under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, and Tops noted, it is working cooperatively with holders of more than 65 percent of its Senior Secured Notes due 2022 and continuing constructive discussions with these debtors.
In a Wall Street Journal report on the filing, the news source noted that Tops accrued $2.5 billion in revenue in 2017—a net loss of $80 million. In total, the company has assets of roughly $977 million and approximately $1.2 billion in liabilities.
The company also noted, in its press release, that it has received a commitment for a $125 million debtor-in-possession (DIP) term loan financing facility from unnamed noteholders and a $140 million DIP asset-based revolving loan from Bank of America, both of which are expected to support the Tops’ continued operations during the court-supervised restructuring process. Tops noted that it intends to continue to support its business operations, to pay employee wages and benefits without interruption, and to pay vendors and suppliers in full.
Additional information is available at www.topsrestructuring.com.
BOISE, ID - From JR Shields and Nash Finch to Associated Grocers and Albertsons, Dan Sutton has more than seen the grocery landscape change, he has grown up within it. With nearly 48 years under his belt and a wealth of retail expertise to spotlight his career, Dan is looking to the next chapter in his life with the announcement of his upcoming retirement this month.
“Albertsons has been a great company to work for, and I am tremendously appreciative to have had such an amazing opportunity,” Dan shares with me. “From Joe Albertson to our current CEO, Bob Miller, the leaders have come up through the retail-side of the business, bringing insight and vision to the company. The culture they have created is an incredible one I won’t soon forget.”
Dan’s passion and appreciation for our industry root deep and began back in high school, where he started working for—in his mind—a very tough grocer while in Hill City, Kansas.
“I wish now that I could have been more like JR Shields, who was the Owner of Shields IGA. He was a phenomenal trainer, mentor, and business owner and taught me the meaning of hard work and also a sense of community and charity,” Dan shares with me. “JR was the kind of guy who would send me out on a delivery in his car, and when you got there, the family didn’t know why I was delivering stuff because they couldn’t afford it. And he didn’t expect to be paid.”
After building a career across retail, Dan joined Albertsons in Denver, Colorado, in 1982 as a Produce Buyer. In 1992, Albertsons moved his family to Boise and Dan into a new position as Director of Produce Procurement. Then, in 2001, Dan was promoted to VP of Produce Procurement. In 2006, the produce veteran went to work for Albertsons LLC—a Cerberus company—as VP of Produce Sales and Procurement. When the LLC company grew through acquisitions, Dan moved back over to VP of Produce Procurement.
In addition, Dan, along with several others started Basket of Joy back in 1988, an annual project of Volunteers of America, The Denver Post, and Safeway to bring holiday fruit baskets to limited income seniors in the Denver area. Thanks to the help of over 1,000 volunteers and valuable community partners, Basket of Joy provides 5,280 nutritious baskets to seniors every year.
You can tell that passion is not an area where Dan is lacking. When I ask Dan what his aspirations are for the industry, he tells me that he hopes that the next generation will see the immense number of possibilities they can discover in its fold.
“I think that the grocery industry is amazing, but it seems to be somewhat misunderstood by career seekers,” Dan says. “There are tons of career opportunities, not only in the retail environment, but also in logistics, IT, marketing, HR, and procurement. Whether local, regional, or at a corporate level, there are potential careers for about anyone who wants to apply themselves. But you don’t hear those opportunities being touted much outside the industry. I hope that will change.”
So what is next for Dan as he moves toward officially retiring at the end of this month?
“I am very much looking forward to retirement and will mainly continue doing what I already do—minus coming to work every day. So, I’ll be playing with our granddaughter Rosie, golfing more, woodworking to master hand-cut dovetails, and doing a bit of traveling. I will also be doing a little voice-over work to finance the other hobbies,” he smiles and says.
Not a bad way to enter retirement and the road ahead if you ask me! Dan, congratulations on an amazing career, and thank you for sharing your story with AndNowUKnow and the industry!
SALINAS, CA – In my opinion, you can never have enough of a great thing. Thankfully, Ippolito International has taken to this philosophy to satisfy every consumer’s asparagus want and need by expanding its conventional program, with its California production in Salinas Valley at Coastal View Packing, as well as introducing its organic program, with new 1 lb bunches and value-added pack sizes.
"California production allows us to service our customer base for a longer period as well as offer up Organic Asparagus. This provides us with a great opportunity to grow the category," said Dan Canales, Senior Vice President of Sales, Marketing, and Processing, in a recent press release. "We now offer our customers an asparagus program supplying product roughly 8 months out of the year."
Industry veterans Alicia Blanco and Patrick Collins are taking the stage as the newest additions to the executive team to guide these expanding efforts to success. Both joined the company in January.
Blanco, who previously held the title of Marketing Manager for Misionero, is now settling into her newly-created Marketing Manager position.
"I am excited to be part of the Ippolito team and look forward to developing marketing strategies with our retail and foodservice partners that continue to bring awareness to the category and Queen Victoria brand," said Blanco.
Collins, whose career includes his time as Senior Director of Farming Operations for Dole Fresh Vegetables, is stepping into his new position as the Vice President of Ag Operations for the company’s corporate office based in Salinas.
"I am ecstatic to join the Ippolito team, and I look forward to leading some of the strategic growth initiatives in order to expand our product offerings and add value to our customers," said Collins.
Congratulations to Alicia Blanco and Pat Collins on their new roles, and we wish every success to the Ippolito team with their newest executive members and expansion endeavors!