LOS ANGELES, CA – As an industry, we produce people may not be immediately familiar with Joel Montminy, but as Founder, President, and CEO of CREO | Montminy & Co., a boutique investment bank specializing in the food industry, we’re almost certainly familiar with his work.
As head of the firm, Joel has been the person behind the scenes orchestrating many high-profile produce transactions—including the merger between Progressive Produce and Total Produce (best-known in North America for its strategic partnership Oppy). I recently had the opportunity to speak with Joel and learn more about his company and the services it provides.
“Since inception, our focus has been on providing highly-customized solutions to privately-held companies going through some form of critical transition—typically in the food industry that involves significant growth and capital requirements,” Joel explained to me. “As a firm, we’ve advised over 100 companies in the food industry, up and down the supply chain. I’ve worked with growers, shippers, packers, importers, exporters, marketers, distributors, retailers; from farm to table and domestically and abroad, we’ve had the honor of getting to know incredible founders, families, entrepreneurs, and boards—providing high-level corporate finance guidance at their critical junctures.”
CREO | Montminy & Co.’s advisory services to Progressive Produce and Total Produce were instrumental in the transaction that saw the latter company acquire 65 percent of the former operation.
“Progressive Produce had a stellar reputation in one of the largest produce markets in the country, Southern California. With an excellent facility, strong management team, and a diverse, long-standing customer and vendor base—they had all the pillars of what we know are the key value-creators” said Joel, explaining that after combing the market and receiving ample interest, the company ultimately chose Total Produce as a suitor. “Progressive found that among all of its choices, there was chemistry with their executive team and aligned philosophies of doing business. Total Produce is a unique public company. There is a huge opportunity for collaboration among its various businesses, but each business is self-managed and self-reliant, and that was very attractive to Progressive.”
Having arranged an amenable strategic and financial partnership, Joel noted, the two companies reached a mutually-beneficial agreement that allowed Progressive Produce to continue its trajectory.
“We sold a controlling interest in Progressive, combined with attractive terms that leverage expected synergies of the combination,” surmised Joel, noting that on the one-year anniversary of that closing, CREO | Montminy & Co. brokered another acquisition, this time with Progressive Produce acquiring Keystone Fruit Marketing. Joel added “Total Produce and Progressive continues to grow both organically and through acquisitions.”
CREO | Montminy & Co. is currently in the market with several major produce companies on the West Coast, Joel noted, and expects to announce transactions in the first quarter of 2018. To learn more about CREO Montminy, visit the company’s website.
ITALY - Now with its debut of a huge, Disney-esque food theme park completed, Eataly is rumored to be eyeing an Italian IPO. Eataly expects to post sales of approximately $554 million (€470 million) this year, almost 25% higher than its 2016 fiscal year.
Though Eataly would be listed on the Italian stock exchange, known as the Borsa Italiana, Financial Times reports that investors around the world, including those in the U.S., would—in theory—be able to purchase shares of the company.
Eataly currently stands at five U.S. locations, having recently expanded to the West Coast with a Los Angeles shop, and upwards of three dozen locations worldwide. With current plans to grow even further in the next couple of years, including raising stores in Las Vegas, San Francisco, Toronto, Stockholm, Paris, and London, this could just be the beginning.
On a broader scale, Executive Chairman Andrea Guerra told the Financial Times the team plans on a major expansion over the next decade, hoping to ultimately have “a store in every world capital.”
As for the IPO, the company said it could go public as soon as 2018.
As we keep an eye on this, and all other businesses opening up the beauty of produce and other fresh food items to consumers, continue to read AndNowUKnow for the latest.
CINNCINNATI, OH – There’s a new stage for the major retail showdown, with the likes of Amazon, Walmart, and now, American grocery brand Kroger, squaring off over their advertisement businesses. While Amazon has its in-house Amazon Marketing Group, and Walmart has Triad Retail Media, Kroger, as of three years ago, now has the data analytics sector of agency dunnhumby, 84.51°, to form its own consumer insights, and the purchase is finally bearing fruit. New to the ring, but a force to be reckoned with, Digiday reports Kroger is selling its suppliers ad units and solutions along with developing a programmatic platform set to go live next year.
“You can say that we borrowed the Triad model, but the differentiation is our ability to personalize the experience,” said Cara Pratt, VP of Customer Communications Product Strategy and Innovation for 84.51°, according to Digiday. “We can connect 96 percent of Kroger transactions to a customer, which allows us to serve very targeted product placement and drive better conversion.”
One way Kroger is gathering program and purchase data from its mobile apps, brand website, and 2,800 stores across 35 states in the U.S., is through the retailer’s loyalty card program, which drives 90 percent of the retailer’s sales, and is allowing the company to help its suppliers post targeted ads on Kroger’s properties and around the internet–a tactic Amazon and Walmart also rely on.
The retailer will also offer an increase of on-site advertising on Kroger.com, managed by 84.51°, who is also responsible for developing the programmatic platform that will be available in the next year to let advertisers buy ads on Kroger.com.
Last month, Kroger also reported 4.5 percent growth between July and September after generating $27.7 billion in sales.
With Kroger fully in the ring, squaring off against competitors like Amazon and Walmart, will the retailer’s new advertisement tactic pay off in the long run as sales continue to increase? AndNowUKnow will continue to report on the latest.
YUMA, AZ - As a self-proclaimed iceberg lettuce enthusiast, it is good to know that production is alive and well. However, a warmer fall than usual has been a catalyst for an abundant production of iceberg lettuce, which has consequently brought a temporary inundation of supplies in the market. As demand increases this feast-friendly season, how will the market as a whole see a shift?
Doug Classen, Vice President of Sales at The Nunes Company/Foxy Produce, takes a moment to share the latest with me on production out of Yuma.
“The warmer-than-normal weathe
The Nunes Company offers a full line of foodservice and retail packs to supply the broad spectrum of needs within the marketplace, regardless of market conditions.
To this point, he explains, “With iceberg lettuce being our flagship item, The Nunes Company also offers over 35 different commodities. All of the items we market are available conventionally and organically, which gives our customers and the end-user consumer a choice that best fits their needs and lifestyle.”
Another avenue Nunes' team is taking to set itself apart from the pack comes about when the shipment process occurs. “With transportation and logistics becoming a greater challenge, The Nunes Company offers one-stop shopping on our entire product line with both our conventional and organic programs loading off the same dock,” he shares.
Further, Doug expresses an excitement that the quality and condition of iceberg lettuce are in good condition; on that token, Foxy Produce and The Nunes Company are looking forward to the upswing in the market moving forward. While feasts are abundant during the holidays, the company is looking forward to a mutually successful season with its trading partners.
BAY OF PLENTY, NEW ZEALAND – Kiwano horned melon grower Enzed Exotics kicks off its season come January. After seeing nearly 50 percent growth in U.S. sales since 2015, the company noted expectations of a continued upward trend in the horned melon’s use as a staple item in various recipes.
“Enzed Exotics is known for having consistently high quality because our fruit is timed perfectly to be picked, shipped, and arrive at peak quality,” said Vanessa Hutchings, Owner and Managing Director. “Thanks to mixologists and chefs, the Kiwano can be found on menus across the country, and food influencers continue to encourage the re-creation of Kiwano-inspired recipes for at-home chefs and health enthusiasts alike.”
Packed full of nutritional benefits including magnesium, zinc, and calcium, Kiwano provide crucial health essentials as well as a good source of beta-carotene, which gives the fruit its vibrant color and converts to Vitamin A in the body.
Following a sustainable farming practice, Enzed Exotics has mastered the art of growing premium natural Kiwano for 30+ years using New Zealand’s ideal growing conditions paired with the company’s experience in seed selection and quality handling techniques, according to a press release.
As filling as a watermelon but with less sugar and low in calories and fat, the flavor is often described as a cross between a banana, passionfruit, and lime.
As a first time exhibitor at this year’s New York Produce Show, Chief Grower/Owner Alan Hutchings and Vanessa Hutchings will be available to meet in the Big Apple, December 12-14, at booth #162. Those interested in touching base can also email Savannah Blake at [email protected] to schedule an appointment.
SPAIN – While bananas are making their debut as a royal wedding cake flavor across the pond next year, the fresh produce variety has also been exploited of late for more nefarious purposes off a Spanish port. Earlier this month, Spain’s interior ministry announced that law enforcement officers seized six tons of cocaine stashed in banana boxes found aboard a container ship arriving from Medellín, Colombia.
Attempting to conceal over 5,000 bundles of the drug within one of six containers in a consignment of bananas, The Maritime Executive reports three culprits—including the head of the fruit and vegetable importer that had ordered the consignment—were arrested in connection with the discovery of $250 million worth of cocaine set to arrive at Catalonia’s international airport for different distributors.
While officials have intercepted cocaine in hollowed-out pineapples, pallets of papayas, bags of coconuts, and boxes of limes over the years, this banana bust is the nation’s largest cocaine seizure in 18 years, and the second largest in Spain’s history.
For more crime solving and drug busting in the produce industry, keep checking back with AndNowUKnow for the latest.
UNITED KINGDOM - Gone are the days when parents look to bargaining chips to get their kiddos to eat their daily fruits and veggies. Lidl UK has created a holiday-themed line of various vegetables, which is sure to inspire awe in tiny ones’ imaginations; to top it off, the veggies are small, just like them!
"Our Penguin Parsnippers and Santa Sprouts have been designed to help convince even the fussiest of eaters that veg is something to look forward to, rather than being a battleground at mealtimes," said Emma Byrne, Head of Fresh Produce for Lidl UK, in a recent article from The Sun.
According to that same article, the fun-size veggie varieties that come in festive-themed packaging include Rudolph Noses, commonly referred to as mini red potatoes, Snowman Snouts, also known as baby carrots, and Santa Sprouts, which have been called mini Brussels sprouts from time to time. The colorful, fun, and festive names attract younger customers, according to Lidl. The Mirror reported that the veggies hit Lidl UK’s shelves yesterday, December 11.
While some parents might argue that getting their children to eat right is difficult, especially during the holidays when chocolate somehow becomes a food group, they now have one less thing to worry about because the holiday-inspired veggies are very affordable. The ingenious packages are only made more appealing when the 79 pence per pack price tag is attached.
This idea is an off-shoot from the brand’s efforts to continuously engage kids in healthy eating options. Other varieties that the company has offered using this tactic are Unicorn Carrots and Sweet Potato Piggies. A grand total of 17 new items have been introduced this year alone, with more reportedly on the way—and Santa is always watching, right?
"Our Oaklands Fun Size range has been a huge hit with families, and we hope these new, festive additions will be equally popular," said Byrne, according to The Mirror.
How will the introduction of these kid-focused items attract and keep consumers throughout the holidays and into the new year, and will we be seing them on Lidl US shelves as well? AndNowUKnow will continue to report with the latest industry news.
KINGSVILLE, ON – With convenience more and more becoming a selling point in the produce aisle, value-added produce offerings and fresh-focused meal kits are gaining shelf space and increasingly driving sales. And with its latest line of pasta kits, SUNSET® is offering retailers all the tools to capture on-the-go consumers’ dollars keep ahead of the curve.
I had a chance to speak with Culinary Director Roger Mooking to find out more about SUNSET®’s You Make Me™ line of pasta kits.
“We’ve got four new pasta kits that we’re talking about this year: You Make Me™ Blush!, You Make Me™ Hot!, You Make Me™ Chill!, and You Make Me™ Fresh!” Roger tells me. “Everybody’s busy; everybody’s running around. They have short-time, but they don’t want to sacrifice feeding their families healthy meals on the fly. What you want is a pasta kit!”
From You Make Me™ Blush!, with its Creamy Parmesan flavor, to You Make Me™ Hot!, with it’s Spicy Arrabbiata, each kit includes perfectly portioned pasta, spice packets, and infused olive oil, and features eye-catching graphics, delicious flavors, and of course, SUNSET’s iconic tomatoes.
You Make Me™ pasta kits make their debut this month. Watch our brief interview above for more.
And to learn more about the innovative line and other SUNSET® offerings, visit www.sunsetgrown.com.
LA CAÑADA FLINTRIDGE, CA – With the holidays almost upon us, the opportunity to give is needed more than ever as families across the United States struggle to make ends meet in time for the holidays. This week, the Allen Lund Company is once again doing what it can to help its community by supporting Navidad en el Barrio, a program that assembles holiday food baskets to provide to low-income families in Southern California. As the company prepares to deliver the food baskets to families this Saturday, December 16th, the Allen Lund Company is asking produce growers and shippers to donate any extra pallets to the good cause.
“It’s so wonderful to be able to provide fresh produce and meals to these families during the Christmas season,” Nora Trueblood, Director of Marketing for the Allen Lund Company, says. “Navidad was launched in 1972, and we’ve been so committed since becoming involved in 2004, which is why we’re willing to go and collect the donations from any grower or shipper located nearby. This year, we recognize there are a lot of challenges going on right now between the fires and the truck shortage, and so anything that a shipper can do is hugely appreciated.”
This week, beginning yesterday December 11th, fresh produce from as far away as Washington and Idaho will be headed to Bell, California, to provide extra nutritional value to the Christmas baskets. Along with fresh produce, the food baskets include chicken, tortillas, cheese, and canned goods, but Nora notes the fresh produce makes a huge difference for the families.
Along with Rainier Fruit Company’s apple donation, Dayka & Hackett’s grapes, Mission Produce’s avocados, Wada Farms’ potatoes, and as of Monday, 15,000 bags of carrots from Grimmway Farms en route this week, Nora also asks produce growers and shippers as far as Arizona to consider donating, as ALC will provide transportation.
“My mom and dad instilled in us the value and importance of giving back, and we as a company completely embrace that concept,” Kenny Lund, Vice President of Operations, says. “Navidad en el Barrio is such an important effort and one that we are able to actually see the impact by participating in the distribution of the dinners and meeting the grateful families.”
Through the efforts of Navidad en el Barrio, over 75,000 people are served and more than 15,000 food baskets are distributed annually. If you have any extra pallets, please contact Nora Trueblood at (800) 475-5863 or [email protected] in order to participate in this season of giving.
ALC is available to pick up donations from growers and shippers through Thursday. However, ALC would need the donation notification/confirmation made by end of day Wednesday.
Should your team choose to participate, your company logo will be featured in any promotional materials that are developed, as well as placed on the program’s website, so rally around this special initiative and join the Allen Lund Company in giving back this holiday season today!
HOUSTON, TX – There is no time like the future, according to Sysco Corporation. As it looks to the evolution of the market, when companies are becoming increasingly environmentally aware, Sysco has requested 50 of Tesla’s new fully-electric Semi tractors, which will begin production in 2019. Sysco’s reservation is one of the biggest electric truck orders the automotive company has received from the food industry thus far.
“We are excited to begin the process of incorporating alternative-fuel trucks into our fleet,” said Tom Bené, Sysco’s President and Chief Operating Officer in a recent press release. “This reinforces Sysco’s commitment to Corporate Social Responsibility by reducing the environmental impact of our operations. In addition to the positive environmental impacts, we will also benefit from reduced fuel and maintenance costs and drive associate enthusiasm with the introduction of new and unique technology.”
Sysco’s partnership with Tesla is now joining the ranks of Meijer’s and Loblaw’s, as companies look to the automotive ingenuity of the trucks for ways to keep their pockets fuller and the air clearer. What makes these trucks so special is their ability to traverse up to 500 miles on a single charge while lessening the cost of cargo transport—all the while helping to reduce the global foodservice distribution company’s environmental footprint. Sysco’s initial request for 50 trucks is an effort to move towards a completely electric fleet.
As the industry looks to electric vehicles for adherence to eco-friendly business practices and as a new way to save money on transportation, how will the growing number of partnerships with Tesla affect the industry? AndNowUKnow will continue to report.