- Read more about Tuesday Morning, September 19th, 2017
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WENATCHEE, WA - With its organic apple production estimated to be 15% higher, CMI Orchards’ Daisy Girl Organics™ brand is looking to expand distribution even further before the year is out.
“For the second year in a row, Daisy Girl is the #1 selling branded organic apple package in the U.S.,” said George Harter, Vice President of Marketing, in a press release. “It really shows that organic consumers continue to respond to the Daisy Girl brand.”
Washington’s organic apple harvest is just starting up, and Harter said that prospects for the year look strong.
“We have a number of Daisy Girl orchards just coming into production,” Harter added. “We’re seeing strong increases in our organic supply that will fuel retail distribution and promotions beyond the 9,000 stores that carried Daisy Girl last season.”
Harter added that, with a smaller size profile of the crop in Washington State this year, retailers should expect to see significant sales gains in organic bags, commenting, “Mother Nature set us up for success this year and we’re ready to drive organic sales like never before.”
He observed that co-mingling issues meant organic and conventional apples could not be displayed side by side previously, while packaging eliminates this issue.
"Our most successful retail partners have discovered that putting a strong organic brand like Daisy Girl pouch bags in a premium up-front position is driving consumer conversions and strong sales gains,” he said.
On the note of packaging, CMI cited Nielsen scan data for the past season, showing Daisy Girl as:
- Top-selling branded organic apple package overall
- Top sales rank by variety for packaged organic Gala, Fuji, Red Delicious, Ambrosia, Granny Smith, and Rosalynn
- #2 for Daisy Girl Pink Lady pouch bag in U.S. organic sales in 2016 for the variety
Senior Strategist Steve Lutz stated that the company introduced the two-pound organic pouch bag to lower the retail price point for consumers, while upgrading the packaging to change the shelf presentation from a commodity product to a high-value branded item.
“We saw an immediate sales lift with the Daisy Girl two-pound pouch,” said Lutz, commenting on his belief that the biggest sales impact is coming from the Daisy Girl brand itself. “At first we thought the smaller package might be driving success, but after evaluating the data for competitive products, it was very apparent that the sales success was being driven by the Daisy Girl brand.”
Lutz cites Nielsen data showing that while Daisy Girl Organics are leading, branded organics in total are driving overall category performance. “This past season, branded organic apple packages, led by Daisy Girl, generated a 26% year-over-year sales increase. During the same period, unbranded and private-label organic apple bags showed a decline of 10.2%.”
Citing pricing as a key factor in driving sales, he continued, “If you look at performance on just a per-pound basis, the Nielsen data shows that branded organic apple packages like Daisy Girl deliver a price premium over unbranded organic bags of $.90 cents per pound. Effectively, we’re trading consumers up from a generic to a premium brand. Everybody wins.”
With sales reflecting a strong consumer response to the two-pound organic pouch bag, and harvest kicking off, AndNowUKnow will keep an eye on this and other growing brands in the produce department.
- Read more about Monday Afternoon, September 18th, 2017
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WASHINGTON, DC – La Plaza Market LLC, operating out of California, has posted a $75,000 cash surety bond with the U.S. Department of Agriculture (USDA).
According to a USDA press release, the company posted the bond to obtain a license to operate in the produce industry.
Under the regulations of the Perishable Agricultural Commodities Act (PACA), the company was required to post the bond following its prior involvement in bankruptcy.
USDA will hold the bond for three years, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct business according to PACA rules.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. Its experts 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.
CARLSBAD, CA - If you’ve walked through a grocery store recently and found yourself marveling at an innovative package on the shelf, chances are, Schur Star Systems has had something to do with it. Schur specializes in developing and engineering new bags, creating its offerings using unique materials and shapes, all with a goal of becoming a “one-stop-shop” for its customers. Schur both manufactures packages and provides the equipment used to fill them, and as the company continues on its mission of “disrupting the shelf,” I spoke with Hans Christian Schur, the company’s Chief Executive Officer and Director about what’s to come from the innovative company for the produce realm.
“We’re always working to address our customer’s needs, as well as their wants and desires, by developing the most innovative packaging in the industry,” Hanstells me as we discuss what is on the horizon for the company, who has just begun to delve into produce industry solutions. “Our goal is to allow our customers to differentiate their product line from their competitors. We firmly believe that disrupting the shelf through packaging is the ultimate way of branding or re-branding yourself. In this case, the produce sector calls for more packaging for food hygiene purposes, so our thought is, ‘why not take this opportunity to develop something new and innovative?’”
The possibilities for today, tomorrow and the future are endless, Hans says of why produce companies will find Schur as the perfect answer to their needs. Schur does not want its customers to be locked into one bagging option or one size, so the company actually allows them to purchase equipment that will grow with their product line. Each purchase with Schur is an investment in the long-term, Hans says.
“It is our job to make sure to maximize the degree of flexibility in this equipment so that many other SKUs can be added at a later date on the same machine,” Hans continues. “We are focused on providing the value-added solution that the industry is wanting, and our over 171 year history has proven to lead to trusting long-term business relationships with our customers. We stand behind what we do, with both the machines and the bags we make. The Schur Star concept is a total system solution.”
Over this 170+ year history, Schur Star has created a reputation for itself of thinking outside the box, and welcoming ideas that others may have dismissed as too “crazy.” Just in the past year, Schur has found success with microwavable bags that come with a separate compartment for a spice mix, anti-fog packaging, and another offering you may be familiar with—SunSelect and Oppy’s Outrageously Fresh specialty tomato mason jar bags.
“The flexibility of our equipment allows Schur Star the ability to run the widest range of sizes and a variety of material structures and bag configurations all on one machine. In produce, this means we can create an extensive range of bag features to allow our customers to have an endless array of possibilities for future packaging needs,” Hans explains. “But beyond that, it’s the reliability of our equipment that really sets us apart. 90+ percent of issues can be resolved over a phone call—we make a point to develop equipment that is easy to set up for new SKUs, while also simplifying the overall operation of the equipment. This allows for a production environment in which anybody regardless of skill level can undergo a quick training session and operate the equipment.”
Want to learn even more about Schur Star Systems and all of the company’s shelf-disrupting packaging and euipment options? Check out the company’s website at www.schurstarusa.com.
VALENCIA, CA - With the competitive citrus category heating up as a year-round staple for produce departments and consumers, Sunkist Growers is responding to the heightened demand with a new development in its growing portfolio. The company is kicking off the 2017-18 citrus season with a fresh take on its mandarin program as the recent addition of Mulholland Citrus to the Sunkist cooperative expands the program’s reach and potential.
“All of our grower and shipper members are working together ahead of what we expect to be another strong citrus season. It’s this type of collaboration that I think makes Sunkist truly unique,” Joan Wickham, Director of Communications at Sunkist Growers, shares with me. “Mulholland joining the group gives us even more knowledge and experience to draw upon and also a significant lift in volume, which presents an opportunity to put a new twist on our mandarin program.”
Both Sunkist’s and Mulholland Citrus’ sales and marketing approaches align, as well as the organizations’ values. With eight million additional bags, Mulholland’s volume is doubling Sunkist's existing program. Mulholland Citrus will join the network of packinghouses that comprise the Sunkist cooperative.
“We expect to start shipping California mandarins on November 1, 2017, and will be offering retailers the same support and partnership they expect from Sunkist, along with fresh packaging and point of sale materials that stand out in today’s consumer marketplace,” Joan shares.
The Sunkist cooperative brings more than 40 fresh citrus varieties to market with thousands of grower members in California and Arizona. As stewards of the land, Sunkist is always looking to balance their values, business strategies, and growth, to meet the demands of the consumer, the environment, and the evolving category.
BENTONVILLE, AR - On the heels of Amazon’s call for proposals for the location of its second headquarters, Walmart is looking to fortify its own corporate facilities while also downsizing from six divisions to four. The company has announced that it is building a new Home Office in its hometown of Bentonville, AR.
Walmart's current home office is in Bentonville, though it has grown considerably since Sam Walton first established it in the 1970s. CEO Doug McMillon commented on the growth in a statement, “As we grew in the years that followed, so did our Home Office footprint, but without a holistic long-term plan. The result was today’s patchwork of more than 20 buildings in Northwest Arkansas. Many of these facilities, including the current Home Office, are significantly beyond their shelf-life. They are expensive and inefficient to maintain, costing millions of dollars of accelerating upkeep every year. And because they are so dispersed, they literally encourage us to work in silos and cause us to waste time and energy traveling between locations, many of which have inadequate parking options.”
In a media packet, the company has estimated that the project will take five to seven years to complete, and much planning needs to be done before the groundbreaking. Additionally, there is no current estimated cost, as the project will be completed in phases and worked into the annual budgeting process.
“We intend to bring most of our Home Office associates in Northwest Arkansas onto a central campus with accommodations for a more digitally native workforce and space that encourages greater collaboration and speed,” McMillon noted in the statement.
How will this streamlining of corporate headquarters push Walmart forward in the competitive retail environment? Stay tuned to AndNowUKnow as we continue to report.
SOUTHERN CALIFORNIA – Looking to engage the next generation of shoppers, the Chilean Citrus Committee has partnered with 99 Ranch Market on its Culinary Adventure Program, a program designed to teach children important skills like food preparation and food safety.
“Kids cooking classes are a wonderful opportunity for us to get kids excited about and engaged with our fruit,” said Karen Brux, Managing Director for the Chilean Fresh Fruit Association (CFFA), in a press release. “They develop an appreciation for healthy food and also take away skills that they can build on throughout their lives.”
The association noted that this program is the latest to be supported with Chilean Fruit, noting that the CFFA has sponsored over 100 kids cooking classes at other Southern California retail outlets. During the Chilean Citrus cooking class, chefs in training made a Chilean Mandarin Jelly Roll with an Orange Dipping Sauce and received Chilean fruit activity booklets and a free apron.
As the largest Asian supermarket chain in the United States (46 locations in California, Nevada, Texas, Washington, Oregon, and New Jersey), 99 Ranch Market recently started offering the Tawa Culinary Adventure program in four locations. The company noted that the classes have been an instant hit, with waiting lists for many of them.
“Eating fruits like Chilean Mandarins provides numerous health benefits,” noted a spokesperson for 99 Ranch Market. “We’re happy to be teaching our little chefs how to cook dishes that are not only tasty, but also incredibly healthy.”
CFFA noted that, while overlooked by many marketers, the Asian market is a powerful one. From 2009-2014, the Asian-American population grew 25 percent, the association noted, and U.S. Census projections show the Asian-American population will reach 25.7 million by 2019, with a total buying power reaching $1.1 trillion–or 6.7 percent of total U.S. buying power—by 2020.
The Chilean Citrus season will continue through October, with mandarins the main focus, and, the CFFA added, Chilean mandarin volume shipped to North America through Week 35 exceeded 52,000 tons, an 84 percent increase over same time last year.
For more on all things produce, stay tuned to AndNowUKnow.
WASHINGTON, DC – The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a recent USDA press release, the following businesses and individuals are currently restricted from operating in the produce industry:
United Foods Inc.
Operating out of Medley, FL; for failing to pay a $2,726 award in favor of a North Carolina seller. As of the issuance date of the reparation order, Adrian Samaroo and Howard Teamkin were listed as the officers, directors and/or major stockholders of the business.
CHK Corp.
Operating out of Bronx, NY; for failing to pay a $23,424 award in favor of a New York seller. As of the issuance date of the reparation order, Kil Chin Kim was listed as the officer, director and major stockholder of the business.
Moza LLC
Operating out of Moscow, PA; for failing to pay a $24,165 award in favor of a Texas seller. As of the issuance date of the reparation order, David M. Martin was listed as a member of the business.
J.R. Gaw Produce Co. Inc.
Operating out of Cookeville, TN; for failing to pay an $11,533 award in favor of an Illinois seller. As of the issuance date of the reparation order, Ronnie L. Gaw and Ronda A. Gaw were listed as the officers, directors and/or major stockholders of the business.
The PACA Division, which is part of USDA’s Agricultural Marketing Service (AMS), regulates fair trading practices of produce businesses that are operating subject to PACA including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. Its experts 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.
WESTLAKE VILLAGE, CA - Is produce giant Dole Foods really thinking of selling off its business? According to Wall Street Journal’s sources, the answer is yes. In a new report, people familiar with the matter told WSJ that there has already been a first round of bid offers.
Just months after filing for its public offering, people told the source that the first round of bids for the Dole’s business were due last week, noting that so far, several private-equity firms have expressed interest. WSJ reports that both Morgan Stanley and Deutsche Bank AG are advising Dole of the potential transaction.
While Dole is not publicly traded yet, and it is hard to pin down exactly what the company is worth, analysts can make an estimate. As reported in Dole’s fiscal year 2016 financial results, the company’s adjusted EBITDA reached $215.6 million, and, according to WSJ, shares of comparable companies are often traded at eight times EBITDA. Based on these finding, WSJ predicts Dole could be valued as high as $2 billion.
Dole was taken private by Chairman and CEO David Murdock in 2013, who filed for the company to go public once again in April of this year. There have also been reports that Murdock plans to sell Dole’s corporate headquarters in Westlake Village, California, outside of Los Angeles. As we reported late last month, the Los Angeles Times has speculated that Dole’s headquarter sell off strategy is to make the company a more attractive stock buy ahead of the public offering, but this could also make it a more attractive buy for would-be purchasers of Dole in its entirety.