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 USDA press release, the following businesses and individuals are currently restricted from operating in the produce industry:
Tejada’s Produce Corp.
Operating out of Rio Piedras, Puerto Rico, for failing to pay a $19,538 award in favor of a Florida seller. As of the issuance date of the reparation order, Lilliam Rivera and Wilfredo T. Tejada were listed as the officers, directors and/or major stockholders of the business.
Ayotlan Produce LLC
Operating out of San Antonio, TX, for failing to pay a $19,821 award in favor of a Texas seller. As of the issuance date of the reparation order, Antonio Flores Cervantes was listed as a member of the business.
B &V Solutions LLC
Operating out of Edinburg, TX, for failing to pay a $37,500 award in favor of a Louisiana seller. As of the issuance date of the reparation order, Alejandro Badillo Jr. and Ramon Valencia were listed as members of the business.
Gourmet Home Food Inc.
Operating out of Dallas, TX, for failing to pay a $21,908 award in favor of a Texas seller. As of the issuance date of the reparation order, Srikanth Kandalam was listed as the officer, director and/or major stockholder 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.
KANSAS CITY, KS – Associated Wholesale Grocers (AWG) has announced the sale and closure of its Fort Worth division, its only current operation in Texas, as the company looks to maintain its operations as a low cost provider.
“Our mission at AWG is to provide our member-retailers all of the tools, products, and services they need to compete favorably in all markets served. This includes top-quality supermarket merchandise and support services, all at the lowest possible cost. To remain the low cost provider, we must constantly evaluate how we operate and what we can do to improve. This requires us to consider and implement change when necessary to stay true to our mission.”
The company stated in a press release that it has entered into an agreement to sell its Forth Worth facility and will consolidate the division’s remaining business into its “more efficient and productive Oklahoma City Distribution Center,” according to a statement from the company to its member-retailers. AWG further explained that consolidating its Texas business with its Oklahoma City facility will provide synergies for its entire organization, and provide its former Forth Worth members with an improved assortment.
“Please know that staying true to our mission and supporting our commitments to our member-retailers for the lowest possible cost sometimes requires us to make difficult decisions. That is certainly the case with regard to my writing today and we are deeply saddened to close our Fort Worth facility even though we know this is the right thing for us to do,” David continued. “We understand that the positive business implications do not overcome the tremendous impact this will have on our loyal Fort Worth employees and their families, and that is what made this decision so difficult and heart-wrenching. AWG has a tremendous group of employees and we will continue to need high-quality people to fill positions throughout our organization. We hope that many of those affected will be interested in pursuing continued employment with the Company in one of our other locations. We are truly thankful for their contributions to the organization and their unyielding dedication to AWG and its members.”
AWG will continue to concentrate its organic and strategic growth across its distribution areas. The company recently brought on over 550 new members which operate approximately 1,000 new stores.
The company expects the facility’s closure and transition of business to be complete by December 31, 2017.
CASTROVILLE, CA – As riders get ready to take on the California roads to supporting the Salad Bars to Schools initiative, Ocean Mist® Farms proudly announced that it too is returning to the fundraising fray. The company is sponsoring riders for the Tour de Fresh for its second year in a row.
“It’s important to Ocean Mist Farms to provide nutritious meals for the younger generation because they are the ones who will help carry out our vision one day,” said Director of Marketing Diana McClean.
Ocean Mist Company employees John Pattullo and Paul Scheid will ride along with 50 industry peers to make fresh fruits and vegetables more accessible to schools across the country, according to a press release. Together, they have raised a combined $1,725 toward their $7,000 goal.
“We are motivated to give back to causes that align with our company’s core values and couldn’t be more proud of John and Paul for making the time to train and fundraise for a cause they believe in personally as well,” Diana commented.
John will ride for Colorado’s Boulder Valley School District, and Paul will be riding to support Fairfax County Public Schools in Virginia.
As we previously reported, this year’s event will see riders bike upwards of 275 miles from Pismo Beach to Monterey, California, from July 25 to July 27. The Tour de Fresh has set its eyes on a new record, looking to raise at least $150,000 to privately finance 50 salad bars in U.S. schools this year, having already achieved $131,000 to date.
To help make this year’s goal a reality, donate now at the link below.
Ocean Mist Farms said that, as previous salad bar donors through the Grower-Shipper Association, it expects their riders will be able to provide both salad bars in their respective districts.
The 93-year-old legacy at Ocean Mist Farms is to continuously invest in the community, health, and wellness, which aligns with the mission of Tour de Fresh. The company encourages donations through the website at www.tourdefresh.com.
Continue to donate and spread the word through July 27th, and stay tuned to AndNowUKnow for more coverage of the individuals that help make this ride happen.
SAN QUINTÍN, BAJA CALIFORNIA and WATSONVILLE, CA – More than 1,600 members of the San Quintín community have received free access to healthcare thanks to BerryMex—one of Driscoll’s largest independent growers in Mexico—as part of the grower’s first Health Fair held in May.
Farmers also gathered to elect Fair Trade Committee members to represent them in the implementation of projects using $200,000 in funds generated during the first year of Driscoll’s growing Fair Trade Certified™ organic program.
“It’s powerful to witness the positive impact that our program in partnership with Fair Trade USA has on San Quintín thanks in large part to the passion and efforts of workers who make up the Committee,” said Soren Bjorn, President of Driscoll’s of the Americas, in a press release. “We recognize the importance of empowering farmworkers to lead initiatives like this to benefit their local communities.”
Through surveys and focus groups, the San Quintín Community’s Fair Trade Committee and Premium Participants identified three potential areas where projects would be most beneficial: health, education, and housing. The Health Fair involved more than 80 volunteers, 38 doctors, and 100 medical students from across Baja California. Participants convened at the Restaurante Misión Santa Isabel in San Quintín on May 6th and 7th to provide hundreds of medical exams to community members and their families.
Healthcare services provided during the Health Fair included pediatric, women’s health, dental, and optometry services. Additionally, more than 500 contact lenses, 1,200 toothbrushes and toothpastes, and dozens of education seminars were offered to community members at no cost.
This June, the same community benefited from a delivery of over 1,700 school supply packages ahead of the next school season. In an effort aimed at ameliorating the high cost of school supplies and reducing the number of children who drop out of school in the San Quintín community, the Fair Trade Committee worked with volunteers to deliver school supplies to children of BerryMex employees at the primary, secondary, and high school levels. Packages included notebooks, pencils, crayons, scissors, and other essential items, and were delivered to more than 250 families at no cost.
In its press release, Driscoll’s noted that the Fair Trade Certified program is just one of many initiatives Driscoll’s has implemented as part of its commitment to sustainable business practices. According to the company, Fair Trade USA standards complement Driscoll’s existing independent and comprehensive global Worker Welfare standards, which represent criteria that apply where local laws do not exist, are not consistently enforced, or provide inefficient worker protection.
The Fair Trade Certified process introduces a democratic system in which Fair Trade Committees made up of local farmworkers are elected to represent their communities and determine how to invest funds generated each time consumers buy Fair Trade Certified berries. These Committees work with all workers who are included in the scope of the certificate to determine how premiums will be invested, based on the needs of all beneficiaries.
Based upon the initial success of the Fair Trade Certified program, Driscoll’s noted that it is expanding efforts this year to include more independent growers, expand retail distribution, and increase sales of Fair Trade Certified to include organic blueberries and organic blackberries. In turn, more workers in Baja California will benefit from the program and receive additional funds for community improvement.
CHARLOTTE, NC - No stranger to innovation in the logistics field, ALC Logistics looks to have a few more tricks up its sleeve. As an answer to the recent Food Safety Modernization Act, the company has introduced a new dock scheduling program, promising to streamline docking and loading for all types of produce businesses. I spoke with VP of Operations Kenny Lund, who was more than happy to share the inside scoop with AndNowUKnow.
“Right now, we have the Food Safety Modernization Act that just went into effect in transportation and we also have electronic logging devices that are mandatory in December of this year,” Kenny tells me about the recent changes. “It’s going to put pressure on the supply chain to be more efficient.”
Enter ALC Logistics’ new dock scheduling program, with over 1 million scheduling appointments available for just one of the company’s customers. The aim here is to streamline the time it takes to dock and load, eliminating the need to wait and potentially incur detention charges.
“It’s going to save our customers a lot of money,” Kenny explains.
Want to see an in-depth explanation of the new product from Kenny Lund himself? Check out my full interview above.
BOSTON, MA - Oppy partner T&G Global knows the importance of providing young people with a healthy diet. The grower and seller of Envy™ apples in the U.S. and other key markets, T&G Global has launched a new, awareness-building, mobile sampling campaign throughout the city of Boston, and with it, an important investment into the city’s high school population. In a partnership with the United Fresh Start Foundation’s Salad Bars to Schools™ campaign, T&G Global donated a salad bar to Boston’s Brooke High School.
“At T&G Global, we are delighted to support programs that encourage everyone to choose fresh fruits and vegetables,” said Joe Barsi, the company’s President. “The eating habits that students develop in school can last a lifetime, so having the opportunity to feature Envy apples on their plates alongside other fresh foods is an honor, and one that we believe will benefit them long after graduation.”
According to a press release, this salad bar actually came in response to demand for more produce from the students of Brooke High School themselves. Prior to the student’s summer break, members of the Cooking Club at Brooke submitted a request to school administration to provide a salad bar in the school’s cafeteria, citing their desire for more fresh produce options to be made available at lunch. T&G Global reportedly learned about the students’ request, and took its team straight to Boston to present the donation at Brooke on July 13. In addition to the salad bar, the company will also deliver fresh supplies of Envy apples to the school throughout the year.
“The salad bar initiative is 100% driven by the students and their own motivation to eat healthier. We tested a pre-packaged salad program this year, which was very popular, but we heard from students that they wanted to elevate it to a ‘fresher level,’ with additional produce choices and the ability to customize their own salads,” said Corey Yarbrough, the Founding Director of Operations for Brooke High School at Brooke Charter Schools. “Offering a salad bar is something the administration fully supports, and we are so appreciative to T&G Global and Envy apples for helping make this possible.”
In tandem with T&G’s salad bar donation, the company has also brought an Envy apples’ Summer Roadshow Tour to the Boston area, introducing apple-loving taste buds to Envy’s memorable sweetness and delicate crispness. The event includes staging sampling events at select retail locations and high traffic public areas in an effort to driving increased purchase and heighten interest both at point-of-sale and through innovative social media engagement.
As part of the company’s campaign, T&G Global is giving away $200 Visa Gift Cards and a shipment of Envy apples to samplers each week. Participants can also enter a sweepstakes to win a grand prize of $2,500 and a shipment of Envy apples.
Want to learn more about the Envy apple roadshow? Click this link here, or contact your Envy apples sales representative.
LOS ANGELES, CA – With the steamy days of summer upon us, consumers are looking to the sweet notes of citrus to cool down. In this vein, Giumarra is launching its new Bright Bites™ brand mandarins at today’s Fresh Produce & Floral Council’s Southern California Expo.
“Mandarins are the top seller in the citrus category and show no signs of slowing down,” stated Kellee Harris, Western Region Business Director. “We are pleased to offer our customers an exciting new bag option that emphasizes the fun, playful nature of this ‘easy peel’ fruit.”
Brand Bites will make for ideal “grab and go” merchandising displays for retailers, and will be available in both 2 lb or 3 lb bags. According to a press release, each bag will feature orange mesh with a bright green wrap, adorned with the signature Bright Bites monster graphic.
“We are currently shipping mandarins grown in Australia and Peru, with Chile to begin shortly,” says Fernando Soberanes, Sales Manager of the company's Southern Hemisphere. “Our Bright Bites season will conclude at the end of September and return again when the domestic mandarin season begins in early 2018.”
Giumarra stated that Bright Bites' availability will pick back up in January of next year through local California farmers, and run through March. The high-quality fruit will be available in a variety of bag sizes to fit all retail needs.
“We want to encourage healthy snacking for kids of all ages with our new Bright Bites packaging,” said Jeannine Martin, Director of Sales for Giumarra Reedley. “Mandarins are high in vitamin C and the perfect addition to a lunchbox or after-school snack.”
At FPFC’s Southern California Expo yourself? Stop by booth #704 to see Bright Bites, and more from Giumarra.
MONTEREY, CA – For consumers looking for a juicy and flavorful produce item to round out their baskets, stonefruit will always be top of mind. With organics continuing to grow, that passion for stonefruit is extending into the category and boosting sales across the board. As attendees of the Organic Produce Summit found out, Homegrown Organic Farms is able to answer the call for organic stonefruit in spades.
“The Organic Produce Summit is a great chance to show off our product and talk through our program to quality connections,” CEO Scott Mabs tells me of the hit event’s second year. “When it comes to understanding what we’re shipping on a week-to-week basis, customers have a chance to really engage with our full booth of product and knowledgeable team members.”
This year, HGO had a wide selection of its high-quality organic products on display. From peaches, plums, and nectarines shipping out of the company’s Kingsburg, CA, facility to Dapple Fire pluots, yellow nectarines, and peaches, HGO pulled no punches when it came to their premium lineup. Attendees of OPS also got a glimpse of the company’s organic Oregon blueberries, Asian pears, and summer citrus.
“The Organic Produce Summit is our favorite show of the year. There’s no dilution to this concentrated event, with only organic shippers there to seek out quality organic suppliers,” Scott continues. “Every person that comes by our booth is interested in talking. For the time spent there, it’s extremely worthwhile.”
HGO also highlighted one of its newest and hottest products; its Freeze-Dried Organic fruit line. As a sponsor of OPS’ luncheon, HGO treated hungry organics professionals to its freeze-dried grapes, apples, and blueberries adorning each table. This line, Scott says, always generates lots of interest as the company adds no sugar or additives to secure the unforgettable sweet taste of this cruncy line.
“We came away being able to have a lot of conversations with our customers on how to grow their programs and develop additional business. We also connected with several new customers that want to pursue growth,” Scott tells me. “Our favorite aspect of the show is being really able to connect with the buyer community.”
Looking forward to next year, HGO only sees room to grow alongside and with the event. As Scott is sure to assure me, OPS is integral to the success of the organic marketplace, and one HGO will continue to thrive in.
For all the latest in organic, keep up with AndNowUKnow.
MCLEAN, VA - Gladstone Land Corporation is on the move again, this time announcing an acquisition of four contiguous farms in the Fresno County area of California.
Last month the company bought up five farms; four in Arizona for $27.5 million, and one span of organic property in North Carolina for $2.2 million.
Now, the company has purchased a total of 847 gross acres, approximately 327 acres of pistachio trees and 318 acres of almond trees, for approximately $13.6 million (about $16,056.67 per acre.)
"This acquisition allows us to continue to grow our portfolio of farmland focused on growing healthy products, such as fresh produce and nuts," said David Gladstone, President and CEO, in a press release. "The lease on this property should allow us to generate strong returns, thereby helping us to achieve our goal of regularly increasing the distributions we pay to our shareholders. We have increased the distributions rate on our common stock in each of the past four quarters."
The farms were all planted between 2002 and 2009. Gladstone said that the seller is a leading almond and pistachio grower, harvester, and processor but did not name them or the farms in the release. The company did say that upon acquisition, it entered into a leaseback agreement with the seller for a 10-year, triple-net lease that includes one 5-year extension option.
"This acquisition is another fine example of the productive relationships we have developed with our tenants," said Bill Reiman, Managing Director for the Western United States. "The sale-leaseback transaction is a hallmark of our investment thesis, and we hope to continue providing this service to current and new tenants all over the Western United States."
The lease consists of a fixed cash rent component plus a revenue-sharing component based on the crops harvested on the farms, according to the company.
With this being its third land purchase in two months, what region and category will Gladstone look to next? Keep checking in with AndNowUKnow.
ARLINGTON, VA – Lidl has responded to a lawsuit filed by Kroger this week, citing a “striking absence of evidence” that it had infringed on the Midwest-based grocer’s trademark.
According to news source Business Insider, Lidl filed papers in Virginia U.S. District Court last Friday, July 14th, rebuffing Kroger’s claims that Lidl’s private label brand, “Preferred Selection” too closely resembles Kroger’s “Private Selection.”
“Kroger is using this lawsuit to try to: disrupt the on-going launch of a new, emerging competitor that offers consumers high-quality products at far lower prices; distract from the positive reviews garnered by Lidl’s launch by painting Lidl as a copycat—when in fact Lidl is a decidedly different and (better) grocery experience; and drive up Lidl’s costs by having to defend against Kroger’s spurious claims,” Lidl stated in court documents reported on by Business Insider.
Kroger’s lawsuit, which was filed less than two weeks after Lidl’s U.S. launch in mid-June, alleged that the close resemblance between Kroger’s longstanding house brand and Lidl’s newly-copyrighted one would allow Lidl to “compete unfairly” as customers associated the two brands with one another.
"As a direct result of Lidl’s wrongful conduct," Kroger's initial filing alleges, "Kroger has suffered and will continue to suffer irreparable injury, including, but not limited to, injury to its trademarks and to the goodwill and business reputation associated with those trademarks."
Lidl countered, in its subsequent filing, that Kroger's lawsuit is instead an attempt to stifle emerging competition.
“Against that backdrop and in reaction to this increased competition, Kroger—two weeks later and without notice to Lidl—filed this suit and motion for a preliminary injunction on the Friday evening before the long July 4th weekend, and sought to have a hearing just days later to try to ram through extraordinary competitive relief to which it is not entitled,” Lidl’s filings state. “Although Kroger learned in November 2016 that Lidl intended to offer private-label products under the ‘Preferred Selection’ name and had more than six months to prepare its moving papers, Kroger has offered a striking absence of evidence in support of its claims.”
How will the dispute resolve itself, and will these rivals see their day in court? AndNowUKnow will continue to report.