PHOENIX, AZ - Sprouts Famers Market reported another strong financial quarter today, showing a 16% increase in Q3 2017 sales over last year, due, in part, from a strong showing in the produce department. As a result, the retailer increased its estimates for 2017 across the majority of its financial goalposts, including net sales, comparable store sales growth, and diluted earnings per share.
“Sales were strong across all departments, while inflation was muted and ended flat for the third quarter. The momentum in our non-perishable departments continued, and our produce department benefited from a very strong growing season this year,” said CEO Amin Maredia in a call with the company’s investors.
The boost in produce department looks to come as a surprise for the company, and may have influenced the increased outlook for its total 2017 finances. CFO Bradley Lukow added, “In the third quarter, we did have a benefit from a very strong produce growing season that we would not anticipate in the ordinary course to exist in the fourth quarter, which is traditionally a seasonally less robust produce period.”
In total, net sales for Q3 of 2017 were $1.2 billion, a 16% increase compared to the same period in 2016. Net income for the quarter was $31 million, a 32% increase compared to net income for the same period in 2016. Diluted earnings per share was $0.23, an increase of $0.07 or 44%, as compared to diluted earnings per share of $0.16 for the same period in 2016.
“Sprouts is pleased to report strong top-line growth and demonstrate our ability to leverage those sales into exceptional earnings growth for the quarter. Sprouts’ hallmark of fresh, healthy, affordable products continues to resonate with our customers and positions us as a leader in the industry,” Maredia said in a statement. “We’ll continue to accelerate strategic priorities that will enhance our business–from product assortment to the digital experience to customer service. These, coupled with our technology investments to drive efficiencies, will provide the flexibility to make future investments where needed to ensure Sprouts is well-positioned for the future.”
As mentioned above, this strong quarter was motivation for Sprouts to update its guidance, and, according to a press release, the new outlook is as follow for 2017:
- Net sales growth: 14.5% to 15%, up from 13% to 14% prior
- Comparable store sales growth: 2.5% to 3.0%, up from 1.5% to 2.0% prior
- Diluted earnings per share: $0.98 to $0.99, up from $0.88 to $0.92 prior
- Capital expenditures: Approximately $170M, up from $155M to $165M prior
To learn more details about Sprouts’ full quarter, you can read the retailer’s press release here. And until next quarter, keep checking back with AndNowUKnow for the latest updates.
LOS ANGELES, CA – As more and more consumers become accustomed to food delivery, delivery companies are looking for ways to cut costs, increase profits, and expand offerings to gain an edge on the competition. One such company is DoorDash. The popular delivery app is now offering its customers cuisine from delivery-only “virtual” restaurants—commissaries where chefs can skip the service and offer dishes directly through DoorDash.
A Reuter’s report describes the new pilot DoorDash Kitchens —in which restauranteurs lease kitchen space directly from the delivery service—as a way to “cut costs on labor and rent while adapting to fast-changing consumer tastes and demands in a highly-competitive market.”
The virtual restaurant model is not new, though DoorDash is one of the more prominent adopters of the model. Culinary news source Eater notes that U.K.-based Deliveroo has been employing virtual restaurants for some time now, as have U.S.-based startups Munchery and Momofuku Owner David Chang’s recently-launched delivery-only restaurant Ando.
And DoorDash competitor GrubHub, who Reuters described as the “delivery leader,” has reportedly invested in Green Summit Group—a privately held company that operates virtual restaurants in New York and Chicago, but the company’s COO Stan Chia told Reuters that Grub Hub doesn’t plan on adopting the model anytime soon.
Will virtual restaurants raise the profile of door-to-door delivery, and how will this effect the future of fresh? AndNowUKnow will continue to report.
PULLACH, GERMANY - Since IFCO's 1992 founding, the company’s Reusable Plastic Containers (RPCs) have generated supply chain savings in the amount of $5.2 billion.
“IFCO RPCs have inherent attributes that make them the ideal choice for packaging, transporting, storing and displaying fresh food,” said CEO Wolfgang Orgeldinger in a recent press release. “This impressive data confirms our shared and reusable business model benefits our customers and helps make the world a better place at the same time.”
What is helping to fatten customers’ wallets? Reduced labor and handling costs, reduced product damage rates and equipment, space, and transport efficiencies provided by using RPCs versus one-way packaging have all been major contributors to the cost-savings.
The company’s RPCs have been utilized on 9.5 billion trips since the company’s beginnings, which led to labor and handling savings of over $1.1 billion, a reduction of damaged products that shows a $3.6 billion savings when compared with one-way packaging. Further, RPCs generated $605 million in savings from equipment space and transport efficiencies.
“RPCs are the fastest type of fresh produce packaging because forward-thinking retailers and growers understand they are more efficient, cost-effective and sustainable. We look forward to working with our value chain partners for another 25 years and beyond to build a better supply chain,” said Orgeldinger.
IFCO is celebrating its 25th anniversary throughout 2017 with announcements of the company's successes, events, and a 25,000 € donation to food banks throughout Europe and North America.
According to the press release, additional research shows:
- RPCs are a more effective method for replenishing fresh produce versus cardboard boxes. The study showed RPCs are six times faster for apples and five times faster for peppers, confirming the critical role RPCs play in reducing labor costs.
- IFCO RPCs have had a positive impact on the environment. Over the past 25 years, they have:
- Eliminated 3.4 billion kg of CO2 emissions, the equivalent of removing nearly 500,000 cars from the roads.
- Prevented more than 951,000 metric tonnes of solid waste, enough to fill approximately 104,000 dump trucks.
- Reduced water consumption by 43 billion litres (11 billion gallons).
- Saved 317,982 metric tonnes of produce from damage and waste.
Congratulations IFCO! For more fresh produce news, check back with us at AndNowUKnow.
LAKELAND, FL - Publix is closing out the third quarter of its fiscal 2017 on a strong note, with boosted sales and stock price. Part of the impact, according President and CEO Todd Jones, is from Hurricane Irma, which hit the company’s Florida home earlier this fall.
“We have faced many hurricanes in our past, but none with the size and impact of Hurricane Irma,” said Jones in the financial release. “I could not be more proud of our associates for their passionate service to our customers before and after the hurricane.”
In addition to a 6.2% increase from the same time last year’s quarterly sales, from $8 billion to $8.5 billion, comparable-store sales for the third quarter of 2017 increased 4.3%.
Highlights from the statement included:
- Net earnings for the third quarter of 2017 were $474.9 million, an increase of 12.8% compared to $421.1 million in 2016
- Earnings per share for the third quarter increased to $0.63 for 2017, up from $0.55 per share in 2016
- Net earnings for the first nine months of 2017 were $1.53 billion, a 3% increase over $1.48 billion in 2016
- Publix’s sales for the first nine months of 2017 were $25.6 billion, a 3% increase from last year’s $24.9 billion
Comparable-store sales for the first nine months of 2017 increased 1.2%, according to the release, which it estimates the impact of Hurricane Irma resulted in a 1% percent jump for the first nine months of 2017.
Likewise, the company attributes 3.1% of its sales increase to Irma, as well as the profit on the incremental sales having more than offset inventory losses “due to power outages and other additional expenses.”
While Publix is not publically traded, the retailer noted its stock price increased from $36.05 per share to $36.85 per share as of its financial report’s release yesterday, Nov. 1.
The amounts listed in the report are based on unaudited reports that will be filed with the U.S. Securities and Exchange Commission. For the latest in retail and other news that could influence fresh produce, keep checking in with AndNowUKnow.
MONTEREY, CA – The first ever Organic Grower Summit (OGS), a joint production between California Certified Organic Farmers (CCOF) and Organic Produce Network (OPN), has finalized its keynote speakers, rounding out the line-up with Sun Basket COO Don Barnett.
“Our mission at Sun Basket is to make healthy cooking easy and delicious by delivering Northern California’s healthy food culture to the rest of America,” Barnett said, in a recent press release. “We’re re-imagining the food supply chain with state-of-the-art technology that allows amazing food from the best organic farms to reach a wider American audience. To be able to share information and network with organic growers at OGS benefits all of us in the world of organic food.”
With over 25 years of fresh produce experience, including acting as Co-Founder/Partner and CFO of NewStar Fresh Foods, Organicgirl Produce, and Pessagno Winery, Barnett has been confirmed as the final keynote presenter and will represent Sun Basket, a leading nationwide delivery service that provides recipes and pre-portioned organic ingredients for home-cooked meals, at this year’s OGS.
“We are thrilled Don is able to talk to OGS attendees about the growing direct-to-consumer marketplace and the challenges and opportunities for those producing organic fresh products,” said Tonya Antle, Co-Founder of OPN. “Sun Basket has made a tremendous commitment to the organic and sustainable space and is positioned to be a leader in this category."
The inaugural OGS will bring together organic growers, producers, and processors for two days of education, information, and networking opportunities with organic production supply chain and service providers in Monterey, CA. Held on December 13-14, the event includes a series of educational sessions, keynote presentations, meal functions, and a sold-out trade show floor exhibiting over 75 service providers and supply chain companies, sponsored by Western Growers. Among participating exhibitors are leaders in the fields of seed, packaging, soil amendments, and food safety, who will be connecting with organic field production staff, supply chain managers, pest management advisors, and food safety experts.
The education-rich program of OGS includes six different sessions covering an array of subjects from technology to soil optimization and will feature some of the industry’s leading experts. Among the scheduled educational sessions are: “Issues Facing Organic Farmers Today,” “Clean and Renewable Technology,” and “Tools for Plant and Soil Health.” Additionally, a Grower Roundtable titled “From Wall Street to Main Street, Organic Means Good Business” is slated as a keynote presentation and features Scott LaRue of Piper Jaffray as moderator, and Bill Reiman of Gladstone Land Corp, founder of Mission Ranches Stan Pura, and President of Grimmway Farms Jeff Huckaby.
Participating grower attendees also will have an opportunity to meet with a team of Costco buyers as part of a special "Meet the Organic Farmer" session. This unique session provides certified organic farmers and grower representatives the opportunity to meet one-on-one with Costco organic produce, dairy, meat, and wine buyers to discuss operations and products.
“Costco is committed to meeting directly with organic farmers, who are truly on the front lines of bringing top quality organic products to market,” said Heather Shavey, Assistant Vice President for Costco. “We appreciate the work OPN has done in putting together this unique opportunity to meet face to face with those responsible for actually growing organic products. Our buying team is looking forward to learning more about organic production, hearing about new product innovations, and building new supplier opportunities to meet the growing demand for organics for our shoppers.”
Additionally, OGS is finalizing an educational outreach program for PCA, PRC, and qualified applicators to kick off the event. Attendees are eligible for two hours of approved continuing education credit and can learn about new requirements for pesticide use near schools and worker protection standards.
For a complete schedule of events and more information, visit organicgrowersummit.com. For more produce industry news, stay up-to-date with AndNowUKnow.
CASTROVILLE, CA - As consumers enter the busiest season where kitchen convenience is most crucial, Ocean Mist® Farms is looking to enhance the ease of its popular Season & Steam® product line with a new campaign.
The company is launching ‘Tis the Season to Steam Sweepstakes, a 7-week consumer promotion. Starting November 13th and running through December 31st, this sweepstakes will be providing recipe inspiration, preparation tips, and cookbook resources.
Featuring the Season & Steam ready-to-use, award-winning packaging, its unique convenience might be lost in its powerful presentation, Senior Director of Marketing Diana McClean observed.
“We recognize that some of our products may be intimidating to people who are unfamiliar with these vegetables,” Diana said in a recent press release. “The Season & Steam product line features many different options and encourages people to try them with a more approachable preparation method.”
Everyone loves a good serving of steamed vegetables, but the preparation can sometimes bite into already jam-packed schedules. Ocean Mist is setting out to eliminate this issue with the popular product line, which gives users the option to pre-season the vegetables, reseal the zip lock, and steam in the microwave–all in the same bag!
With this no muss, no fuss meal option for your customers, they can enjoy Season & Steam’s vegetables, including:
- Whole artichokes
- Sweet baby broccoli
- Whole, halved, and shredded Brussels sprouts
As a reward for the promotion, consumers can take home a prize pack, including Ocean Mist products, a Williams Sonoma® vegetable steamer, and more.
With the holidays right around the corner, Ocean Mists’ new launch is focused on making dinner preparations for your shoppers easier, healthier, and more joyful throughout the season.
Stay tuned into AndNowUKnow for more fresh produce news!
CULIACÁN, MX - Floriza en Los Parajes organic produce, marketed by Bridges Produce under the Aztlan Organic label, is ending October with a bang, taking home its first Fair Trade USA certification. Located in Culiacán, Sinaloa, Mexico, Floriza en Los Parajes has 52 acres of shade houses, where it grows organic bell peppers, eggplant, and cucumbers, as well as Anaheim, jalapeño, poblano, and serrano chili peppers. Come mid-November, these organic commodities will be available to be sold under the Fair Trade label.
“The mission of Bridges Produce is to ensure that every stakeholder in our food system is not only protected, but also thrives—the consumer, the retailer, the farm, the farmworker, and the environment,” said Ben Johnson, President at Bridges Produce. “Fair Trade certification is a great way to formalize this commitment to the farm workers and to empower consumers to vote with their dollars.”
Bridges Produce has been marketing Floriza en Los Parajes’ organic produce since 2012, according to a press release, and with this new distinction, is adding bell peppers and chili peppers to it’s growing list of Fair Trade offerings. In addition to Floriza, Bridges also markets Hermosillo based Rico Farms’ organic hard squash, eggplant, zucchini, green beans, and melons, which have been Fair Trade USA certified since 2013, as well as what the company says are the only Fair Trade USA certified apples and pears in the USA. Grown by Lago Verde in Argentina, these apples and pears are available from March through June.
For the multi-generational family farm of Floriza en Los Parajes, Fair Trade USA certification came naturally, having always been dedicated to its rural community and to a compassionate business model.
“We have benefited from the support of our workers through many crises, and have tried to help them whenever we can. We hope that being Fair Trade certified will allow us to help them even further,” said Fernando González Peña, Floriza en Los Parajes' Assistant Manager and Director of Food Safety, adding that he is excited to see what personal growth will come from the Fair Trade program. “The fact that the workers have to work together to administer funds for the general good is a very interesting proposition that will hopefully have a positive impact on their political awareness, social relationships, and personal economies.”
To learn more about Floriza en Los Parajes and all its Fair Trade offerings, contact Bridges Produce at [email protected], or by phone at 503-235-7333, and see all of what Bridges has to offer at www.bridgesproduce.com.
BENTONVILLE, AR – 'Tis officially the season, and all through the land, Walmart is stirring with festive holiday plans. Whether for an avid online shopper or in-store purist, there’s something for all consumers looking for lowered prices and triple the online selections this year.
According to a Reuter’s report, Walmart’s Chief Merchandising Officer Steve Bratspies said that for the third consecutive year the retailer would focus efforts offering the lowest prices and discounts in order to meet customer expectations with consistent pricing steals.
“We are buying as much inventory as we think we can handle and sell…we think we are in a really strong position,” Bratspies said after noting the retailer would offer “thousands of rollbacks” across products.
With 60 million online offerings and free two-day shipping, the internet isn’t the only place shoppers can feel warm holiday feelings.
Looking to improve the shopping experience, the retailer will be expanding the role of its employees, who helped customers find short register lines last year, according to a St. Louis Post-Dispatch report. Walmart will also be hosting more than 20,000 in-store events for little elves to try out and test if top-selling items are ready for Santa’s sleigh.
Will Walmart’s plans differentiate it from rivals and bring home that holiday cash? AndNowUKnow will continue to report with the holidays’ arrival.
MORGAN HILL, CA - With over twenty years of industry experience to offer, Justin Davis has been named as Sakata Seed America’s new Senior Manager, Vegetable Sales and Marketing.
Moving up from his most recent role with the company as its Production Manager, where he led the expansion of seed supply to support the growth of Sakata’s global business, Davis expressed excitement for this next step in his career.
“Accepting this new role is such an extraordinary honor,” said Davis, who originally started with Sakata as an intern when he was 19. “I am looking forward to working with our senior leadership, our customers, industry partners, and the entire Sakata team to continue to build on our progressive strengths. This is an exciting time for our industry and I am excited to have an opportunity to play a significant role in Sakata’s contribution to the future of seed and agriculture.”
Besides having held various positions at Sakata, the company said in a press release that a key attribute Davis brings is his deep respect and dedication to the brand. This announcement comes as Sakata continues its celebration of forty years of business in North and Central America.
“We’re excited to have Justin lead our vegetables marketing activities,” explained President and CEO, Dave Armstrong. “We continue to invest in people and to develop the company culture and infrastructure to achieve our goals and pursue our passion of providing innovative vegetable and flower genetics that better the world around us.”
As the new Senior Manager, Davis will assume responsibility for all of Sakata’s vegetables sales, product development, and marketing activities within U.S., Canada, Mexico, and Central America. He will be based out of the Sakata’s Morgan Hill office headquarter, reporting directly to Sakata Seed America’s recently-appointed Vice President, John Nelson.
Congratulations!
SALINAS, CA - With the last tendrils of summer heat waning and cooler temperatures settling in, Church Brothers is transitioning its iceberg lettuce to Yuma, Arizona despite ongoing harvest in Salinas and Huron, California. Church Brothers Farms’ Manager of Commodities, Jason Lathos, tells me we can expect an overlap between Salinas, Huron, and Yuma harvests. As a result, he expects a seamless transition as Church Brothers gears up for the Thanksgiving demand.
“The weather has been a roller coaster this year,” Jason Lathos says. “Last week it was 90 degrees, while this weekend is expected to be 60 degrees. You look at history and numbers, and you can always count on a 15-20% boost in demand for Thanksgiving. The weather might throw a wrench in it, but so far everything seems to be on schedule for a smooth transition.”
Some areas are on their last legs after starting behind schedule due to Mother Nature and cooler desert temperatures. Salinas currently has some iceberg and romaine while Church Brothers gears up to kick off harvest season in Yuma before this weekend.
“The Northeast just finished, so we may see an increase in lettuce demand from that region,” Jason shares. “I foresee lettuce and leaf still being fairly good. We’re also thinking there is going to be an increase in demand for the cold weather crops. When you identify the Thanksgiving pull, you identify celery, broccoli, and cauliflower. Even though I think there is an overlap transition coming, I’m optimistic that the cold weather crop demand is going to be pretty good through the transition.”
Church Brothers expects to move completely out of Huron and into Yuma by November 17th, and will be open for business and shipping by the 20th, just in time for a 15-20% increase in demand Jason says can typically be attributed to an active market for the Thanksgiving pull.
For more produce industry news, AndNowUKnow will continue to bring you the latest and greatest in the run up to the holidays.