WASHINGTON, DC – Two key appointments to the USDA were announced this week. The department has selected Carmen Rottenberg to serve as Acting Deputy Under Secretary for Food Safety and Paul Kiecker to serve as Acting Administrator for the Food Safety and Inspection Service (FSIS). The two are expected to serve in these interim positions until presidential nominees are confirmed by the Senate for those roles.
U.S. Secretary of Agriculture Sonny Perdue, nominated by President Donald Trump this January and confirmed in April, made the two appointments and issued a statement in which he praised the two appointees.
“Ensuring the safety of our nation’s food supply is our most important responsibility, and it’s one we undertake with great seriousness,” said Perdue. “Both Carmen and Paul have dedicated their careers to the mission of food safety and I am pleased to have appointed them to these important roles within the USDA. I commend the work of the entire USDA’s food safety team for painstakingly safeguarding the food we serve our families every single day.”
In her new role as Acting Deputy Under Secretary for Food Safety, Rottenberg will oversee development, implementation, and enforcement of all of FSIS regulations, policies, and programs. Her appointment follows six years in leadership roles in the FSIS Office of the Administrator, including serving as Chief of Staff, Chief Operating Officer, and most recently, Deputy Administrator. According to the USDA’s statement, in her previous leadership roles, Rottenberg executed a budget of over $1 billion, spearheaded strategic planning, implemented major reorganizations that led to increased efficiencies, and undertook a number of other successful initiatives.
Paul Kiecker comes to the role of Acting Administrator for the FSIS after nearly 29 years with the organization. Since joining FSIS in 1988 as a food inspector, Kiecker has served in a number of roles at the agency, most recently as Deputy Assistant Administrator for the Office of Field Operations. Kiecker’s experience with FSIS also includes work with the Office of Investigation, Enforcement, and Audit, where he served as a Compliance Investigator and as Supervisory Compliance Officer.
For more on important regulatory changes and their potential impact on our industry, check in with us at AndNowUKnow.
PHOENIX, AZ - Having taken on a strategy of rapid store growth, new products, online engagement, and more, Sprouts Farmers Market is happy to report these undertakings are paying off in stride. Reporting its Q2 2017 financial results, the company has announced a 15% increase in its net sales and 10% increase in net income over last year.
“Sprouts’ accelerating comp sales and strong top-line growth during this competitive grocery environment demonstrates the power of our brand,” said Amin Maredia, Chief Executive Officer. “Strategic initiatives focused on product innovation, online customer engagement, and knowledgeable customer service are driving new store productivity and customer loyalty.”
Sprouts has been in the news making improvements to many of these sectors mentioned by Maredia in recent months, including expanding its online engagement through growing its partnership with Amazon Prime delivery, adding upwards of 13 new store locations, expanding its fresh distribution footprint through a new facility with Americold, and adding 2,000+ new employees in order to further enhance customer service.
If you look at the numbers, these strategies seem to be making an impact. Other highlights of Sprouts Q2 financial report include:
- Net sales of $1.2 billion; a 15% increase from the same period in 2016
- Comparable store sales growth of 1.4% and two-year comparable store sales growth of 5.5%
- Net income of $41 million; a 10% increase from the same period in 2016
- Diluted earnings per share of $0.29; a 16% increase from the same period in 2016
- Increased full-year sales, comps and EPS guidance for 2017
For more on the company as it continues on through its 2017 financial year, AndNowUKnow will have you covered.
SALINAS, CA – Innovative supplier of premium fresh vegetables, Mann Packing broke ground today on its new processing facility in Gonzales, California. The company will eventually relocate 65 percent of its manufacturing volume from Salinas to the new facility, and company representatives, local government officials, and business leaders were on hand to celebrate the occasion.
“We are proud to announce our new home in Gonzales and excited to be part of this thriving business community,” said Lorri Koster, Chairman & CEO. “This project represents the beginning of a partnership and a culmination of years of planning to create a facility which will serve as an anchor for the company’s fresh processing needs."
The Salinas-based company selected the City of Gonzales for its 130,000-square-foot expansion project because of its convenient location and zoned industrial area. And Mann’s noted that it has a further land base at the same location to accommodate future expansions. 250 people will be employed at the new facility.
“We are so proud of our continued growth and the opportunity for expansion in the Salinas Valley and particularly Gonzales where so much of our vegetables are grown,” added Gina Nucci, Director of Corporate Marketing. “It's a very exciting time for Mann's.”
While the lion's share of the manufacturing volume will shift to the Gonzales facility, Mann’s location at 1250 Hansen Street in Salinas will continue to process fresh-cut vegetables, but will mainly serve as the company’s central warehouse, cooling, and shipping facility.
Construction of the facility is slated for completion in early 2018, with production expected to begin in spring. The facility was designed with the goal of achieving electric sustainability and will utilize a windmill turbine to supply energy for heating and cooling.
At the groundbreaking, speeches were delivered by members of the Mann’s team, and local luminaries and important community members like California State Assemblymember Anna M. Caballero were on hand for the occasion.
The ceremony was followed by a guided tour of Fresh Leaf Farms lettuce fields, where reporters, family, and friends got a first-hand look at the innovative partially-automated process whereby the company’s Better Burger Leaf®, Better Green Leaf, and Better Romaine Leaf lettuce heads are harvested, washed, cut, and packed in traceable pallets in the field.
And finally, tour-goers were treated to a luncheon held at the Hahn Estates winery in the nearby Santa Lucia Highlands. The occasion, hosted in conjunction with Rancho Cielo, featured a menu highlighting sugar snap peas, Brocollini, kohlrabi, and other tasty concoctions sourced from the Mann’s stable of products.
For more updates on all things fresh produce, stay tuned to AndNowUKnow.
BENTONVILLE, AR - If we were watching the buy-side like a sports series, Oppenheimer & Co. would call Walmart the top seed, while rising players like Amazon, Lidl US, Kroger, and others eye the challenging position to compete for the trophy of consumer love.
And the analyst is confident the top seed will reign, commenting that the retailer is "fresher than it's been in years," according to a report by CNBC.
Besides a focus in broadening and freshening up its grocery offerings—groceries now account for more than 55 percent of its U.S. sales and the company recently shook up its grocery leadership—Walmart has also squared itself up for virtual clientele in addition to brick & mortar.
"In our view, in acquiring eCommerce operators, Walmart is much more focused upon purchasing key, unique capabilities and technologies, rather than upon simply adding sales," said Oppenheimer Analyst Rupesh Parikh, saying the retailer has set itself up to go "toe-to-toe" with any online or offline competition.
The numbers seem to speak for themselves, with Walmart closing out Tuesday at $80.50 (up about 6.4 percent from this time last month). Oppenheimer initiated an outperform rating on the stock with a $90 price target, CNBC noted. Likewise, Walmart shares have climbed 10 percent over the past 12 months, and the stock is up more than 16 percent since the start of the year.
Amongst its initiatives in perishables that caught Oppenheimer’s eye, were improving not only its fresh offerings, but reaching its Hispanic shoppers more, boosting the accessibility of groceries for its online pick-up services, and increasing its focus on private labels.
When it comes to Amazon’s Whole Foods acquisition, Parikh noted that the market still doesn’t know the e-commerce giant’s intentions for this grocery move.
“It is still unclear how the company plans to sell conventional products in a brick & mortar setting… This remains a big unknown and an area of intense focus for us,” the analyst commented, saying that “it feels as if the battles have only started between Walmart and Amazon.”
Lidl US and other retail competitors were not quite as rough a challenger, according to the report, though the retail battle over pricing, freshness, and other high-demand offerings continue to wage.
"Key metrics such as traffic and comp sales have picked up lately. We look toward FY18 as the first year of more meaningful positive (earnings) growth for WMT since (2013)," Oppenheimer said.
With Walmart’s latest quarterly report set to release August 17, it will be interesting to see the next move in this match to say the least.
INDIANAPOLIS, IN – There’s a new brand joining the lineup of valued partners of The Produce Mom®. The company has announced a new partnership with Eat Smart®, to promote Eat Smart’s Superfood Vegetable Salad Kits.
“The Produce Mom audience is always looking for quick, convenient, and delicious ways to consume more vegetables,” said Kristin Ahaus, Director of Content and Communications for The Produce Mom. “We are excited to share Eat Smart’s salad kits with our audience and know they will appreciate the ease to which Eat Smart helps moms get veggies to their dinner tables.”
The Eat Smart brand is distributed by Apio, Inc. Eat Smart’s Superfood Vegetable Salad Kits are prepackaged salad mixes, designed to be tossed and served, making for an easy and delicious food option for consumers. According to a press release, each kit contains five or more superfoods, along with its own toppings and salad dressing packet.
“We see great value in using Pinterest as a marketing tool. After learning about The Produce Mom’s reach of over 4 million Pinterest users a month, we knew it was a good decision to team up,” said Nathan Long, Associate Marketing Communications Manager for Apio, Inc. “We believe this collaboration will help Eat Smart reach more of our target audience and promote our innovative product lines.”
Apio is a respected name in its category that offers 100 percent Clean Label products, and is committed to being clean across its entire line by the end of 2018. 100 percent Clean Label foods contain no artificial colors, flavors, or preservatives.
Apio first launched Eat Smart in 1996. Since its founding, the brand has grown to now be found in the refrigerated produce section of local grocery stores and in club stores throughout the U.S. and Canada. With this partnership, the brand will connect with The Produce Mom’s engaged following. The Produce Mom ranks in the top 1 percent of all Pinterest pages both in followers and engagement.
As more industry companies partner in the name of increasing produce consumption, count on AndNowUKnow for all the latest updates.
WENATCHEE, WA - As summer reaches its end—and with it, the majority of cherry harvesting—many consumers are finding themselves clamoring to get a final taste of one of their favorite summer fruits. To the delight of consumers and retailers looking to boost their last-minute cherry sales alike, while many Washington companies are wrapping up their cherry seasons during the month of August, Wenatchee-based Stemilt Growers are just getting started on one of its highest-quality offerings—A Half Mile Closer to the Moon™.
“If you look at the information Nielsen has reported on the last three cherry seasons, you’ll find that the last 3 weeks of August resulted in 487 pounds of dark-sweet cherries sold per store per week, with a weekly profit of $2,025, or an average per pound price of $4.16, ” Brianna tells me as we discuss how strong of an impact late season cherries can make on a retailer’s bottom line. “That means a 100 store chain could see more than $200,000 in dark sweet cherry sales during the last 3 weeks of August alone.”
And what makes Stemilt prepared to offer cherries this late into the game? Brianna says August 10th will just be the beginning of harvest for one of the company’s late-season cherry programs, A Half Mile Closer to the Moon. Because of its choice of varieties and unique Amigos Orchard location above Wenatchee, WA, the company is able to make late August another prime selling period for retailers looking to catch last-minute sales.
“Stemilt will continue harvesting cherries fresh daily through this month because of our unique position of growing cherries at high-elevations. Our A Half Mile Closer to the Moon cherries will kick off mid-August, and are great for a final promotion on cherries at retail,” Brianna notes. “They are grown 2,640 feet (a half mile) above sea level and higher, which, when combined with late-ripening varieties, allows us to take cherry harvest later than anyone else in the state.”
An added bonus? Brianna tells me that Stemilt loves to focus on the unique story behind A Half Mile Closer to the Moon cherries, sharing eye-catching POS materials that help sway consumers to add that extra pouch bag to their carts before they leave the store.
“The Moon cherry program is built around quality fruit and storytelling, and offers retailers with a perfect grand finale to cherry season,” Brianna adds. “As research has shown that cherries are primarily purchased on impulse, this freshly harvested cherry pack is one that will be appealing to consumers on sight.”
Want to learn more about Stemilt’s A Half Mile Closer to the Moon cherry program? Visit the company at www.stemilt.com/fruits/cherrie
WASHINGTON, DC – The U.S. Department of Agriculture (USDA) has imposed sanctions on three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a USDA press release, the following businesses and individuals are currently restricted from operating in the produce industry:
Fresh Choice LLC
Operating out of Miami, Florida, for failing to pay a $24,120 award in favor of a Tennessee seller. As of the issuance date of the reparation order, Alejandro R. Hernandez was listed as a member of the business.
Family Budget Supermarket 2 Inc.
Operating out of Pompano Beach, Florida, for failing to pay a $10,834 award in favor of a Florida seller. As of the issuance date of the reparation order, Dicarlo Pujols and Jose A. Pujols were listed as the officers, directors, and/or major stockholders of the business.
AP Royal Produce Inc.
Operating out of Brooklyn, New York, for failing to pay a $54,120 award in favor of a Washington seller. As of the issuance date of the reparation order, Aleksandr Yakubov was listed as the officer, director, and major stockholder of the business.
USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA approval.
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 the USDA continues to support the fruit and vegetable industry.
GARDNERS, PA - As Rice Fruit Company bids adieu to last year’s crop, it focuses optimistically on the upcoming season. Stonefruit, the shortest of its seasons, has just begun, and will last until around Labor Day. The hot weather has been ideal for the superior flavor of its Eastern tree ripened peach.
“We are very much looking forward to our upcoming season,” shared Brenda Briggs, VP of Sales and Marketing.
The weather has been good so far for both apples and peaches, and in just a few short weeks, the Premier Honeycrisp will make its debut mid-August. There have been some close calls with pocketed summer storms, but, thankfully, any damage has been localized and not very widespread—a much different story than the crop of 2016. Now, Rice has been focusing on strategically planning its new crop.
“We’ll begin with our stonefruit, which is always fast and furious, and then quickly transition into apples,” Brenda adds. “This will include the seasonal varietal Ginger Gold, and we also will be the first to market Premier Honeycrisp. Shortly thereafter, it will be time for Gala. We’re eager and ready to get to work.”
Want to learn even more about Rice Fruit’s full program of apples and peaches? Visit www.ricefruit.com for all the details.
LOS ALAMITOS, CA – As consumers and buyers alike try to ride the wave of the latest food fads, and look to those that will stay as lasting trends, Frieda’s Specialty Produce was recently featured in a Wall Street Journal article on the matter. The article, “Forecasting the Next Food Fad: Are ‘Kohlrabi’ and ‘Yacon’ the Next Kale” was published last month, exploring what makes produce trend.
Karen Caplan, President and CEO of Frieda’s, was featured in the piece, alongside top-trending chefs and farmers. The article, published July 27, explored the urgency of fruit and vegetable trends, and the increasing demand for the latest items at restaurants, grocery stores, and home delivery services.
“…Caplan has never seen anything like the current scramble for marquee produce. ‘Information travels at the speed of light’ in the Instagram era, she said. The next big thing gets a lot more exposure, and faces a lot more competition,” said the article, written by author Karen Stabiner.
The article discusses the collaboration and cooperation between farmers and chefs with exclusive new vegetables, on both a small and large scale. This includes hot items like kohlrabi, broccolini, escarole, and tropical root yacon.
For Frieda’s, the article illuminates that the national distributor takes a more strategic approach to trend-building. The company stated in the piece that it requires its products to have “volume and a decent shelf-life.”
“For example, yacon was brought to our attention a few years ago,” added Caplan. “But the volume was limited and shelf-life was just not viable for retail.”
Other items mentioned in the piece include jackfruit and Frieda’s exclusive Stokes Purple® sweet potatoes. Each of these items offers good shelf-life, great volume, and stable supply to be available anywhere and almost year-round.
The full Wall Street Journal article is available here through subscription. To get more of Karen’s take on produce trends, watch her video at Bitten LA.
Congratulations on the feature, Frieda’s!
SURREY, ENGLAND - A chili festival turned into a trip to the hospital after one brave (and perhaps senseless) man drank just one shot of vodka infused with Carolina Reaper peppers. Arguably the hottest pepper in the world, the Carolina Reaper is what gives ‘1786 Satan's Shot vodka’ a punch strong enough to claim on the back of its bottle, “Only Satan himself is brave enough to drink this vodka neat.”
The deliciously dangerous vodka, made by the Chili Pepper company and infused for three weeks with Carolina Reapers, was purchased in Surrey, England, at this year’s annual Guildford Cheese and Chili Festival, by friend of the hospitalized, Emma Mirrington.
"I bought the vodka at the festival and when I got home we thought we should share it with a group of friends," she said, according news source, International Business Times. "There were about eight of us affected—I have never seen anything like it."
While the Satan’s Shot bottle clearly reads, “If you feel fearless and want to drink with Satan, you will feel like you are burning in hell itself,” this was of no consequence to the one man, who soon became unconscious and required assistance from an ambulance.
"We know about hot things and know what happens when someone has something too hot for them,” the company which sold the vodka told source Get Surrey. "We're professionals as far as chili goes, and the reaction they have had sounds like the reaction from when someone has something too hot.”
The company, ”I know people have reactions when they have something too hot, but there's a warning on the back of the bottle."
Think you can take down Satan’s Shot? Inquiring and slightly insane minds can order the vodka here, but if you do, make sure to send ANUK all the details!