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SEATTLE, WA - Last weekend, reports that Amazon had agreed to acquire grocery chain Whole Foods Market for $13.7 billion sent stock prices into fits as investors attempted to grapple with the inevitable disruption to the grocery industry.
The online retailer’s stock immediately jumped more than 30 points, raising the company’s market cap by more than $15 billion, and prompting CNBC Analyst Bob Pisani to say that essentially Amazon was acquiring Whole Foods “for free” and pocketing nearly 2 billion in profit.
Others in the brick and mortar grocery industry were not as fortunate. News of the acquisition sent the stocks of rival retailers like Walmart, Kroger, and Costco spiraling.
CNN Money reported Walmart’s stock tumbling five percent on Friday, wiping out nearly $11 billion in the retailer’s market value in one fell swoop.
Kroger and Target stocks dropped nine and ten percent respectively (though Target rebounded to close at only five percent down), SuperValu dropped seventeen percent, and Costco—a company oftentimes thought of as “Amazon-proof”—sank seven percent.
All told, CNN reported that nearly $22 billion of market value disappeared from Amazon’s competitors in the grocery market on Friday.
Monday saw grocery stocks rebounding, according to news source Fox Business, as many investors eyed depreciated grocery stocks as a deal.
AndNowUKnow will continue to report on Amazon’s acquisition and its disruptive effect on the grocery industry.
BAKERSFIELD, CA - As June brings warmer weather and more ideas for delicious and nutritious treats to summer spreads and year-round favorites, Atlas Produce is bringing its premium California-grown dates to retailers under the popular Caramel Naturel brand.
The new crop in Coachella, California, looks very nice as President Robert Dobrzanski shares. The weather has been ideal to grow excellent quality fruit and the company is looking forward to growing the category with its retail partners and new customers.
“We are currently setting up our deals for the winter Holiday push,” Robert tells me, adding that sales spike during that time of year. “With all our fruit being jumbo in size and having the best taste in the industry, our volume has been steadily increasing every year and is poised to grow 20 plus percent from last year. Present supply is good as well, and strong enough to get us to the new crop that will start this September. Now is a great time for retailers to take advantage of promotional opportunities and showcasing a specialty item that is growing in both supply and demand.”
When I ask Robert what tips and insights he has for retailers when it comes to promoting the category and taking advantage of holiday sales, he shares that retailers should create destinations for the various date offerings that Caramel Naturel offers, and not just to display them seasonally, but year-round.
“An item like Caramel Naturel dates in your produce department will help drive repeat purchases and differentiate your produce spread,” he says.
Caramel Naturel’s date sales have been on an upward trajectory for the past five years, and the demand for Atlas’ product has seen a double-digit growth for those past five years, as well.
“We see this trend continuing in the future, especially with our new and revamped brand of Fresh Energy™ by Caramel Naturel,” Robert adds.
With household penetration in the U.S. now up to 35 percent, Atlas Produce is on a growth trajectory that is taking dates from niche to the main stream.
JACKSONVILLE, FL - In a move that has surprised many across the retail landscape, Southeastern Grocers has announced President and CEO Ian McLeod will be departing the company to focus on a new venture, while current COO Anthony Hucker will assume his positions on an interim basis. Hucker will begin this new role as soon as July 1, 2017, and McLeod will remain in his current role through June 30, 2017 to assist with the transition.
"It has been a difficult decision to leave my role as President and CEO of Southeastern Grocers, but I believe the new position will be a positive opportunity for me and in the best interests my family," said McLeod, who has not revealed details on his new role as of yet. "I want to thank our thousands of loyal and dedicated associates—it’s your hard work and dedication that has helped set this company on a path to an even brighter future. I have tremendous confidence in Anthony and the rest of the leadership team, and I know that I'm leaving Southeastern Grocers in good hands."
Southeastern Grocers, which has already initiated a search to find a permanent successor for McLeod, has high hopes for Hucker’s performance as interim President and CEO. According to a press release, Hucker has a strong familiarity with the business, its stakeholders, as well as its challenges, opportunities, and the strategic direction of the company. Hucker has worked within retail for more than 18 years, including stints as President and COO of Schnucks, President of Giant Food, Head of Walmart's Strategy and Business Development division, and a decade as part of the original start up team with Aldi UK.
"It has been a privilege to work with Ian, and I wish him all the best,” Hucker shared. “I am humbled and honored that the Company has selected me as the interim President and CEO of Southeastern Grocers. I look forward to working with the rest of the leadership team and representing our outstanding associates as we continue to focus on our strategic transformation and positioning the business for long-term success."
In its press release, the company noted its appreciation for McLeod’s tenure with Southeastern Grocers. Southeastern Grocers confirmed that under McLeod’s direction, it had made substantial progress in its previously announced transformation plan.
AndNowUKnow would like to wish both McLeod and Southeastern Grocers the best on each’s new ventures.
RIO RICO, AZ – I don’t think I’m alone when I say: with spring heating up and summer fast approaching, my mind tends to wander pleasantly toward tomatoes, bell peppers, eggplants—traditional summertime veggies that are great for grilling as well as snacking.
And as year-round demand increases from consumers looking to keep that good feeling going, SunFed® is working hard to meet customers’ needs with expanding distribution and operations in Texas, increased value-added offerings, and even new sustainably-sourced products to bolster the company’s lines.
“We’ve been operating in Texas for many years, but in terms of having a facility there and a full-on program, this is our third year,” said Craig Slate, VP of Sales, in a press release. “So we’re anticipating a much larger program than we’ve had in the past. We’re excited to have squash as well as cucumbers, a large Roma program, and we will also be adding eggplant this year. Eggplant is not something we’ve had in Texas in the past, and that will hit mid- to late-summer.”
From this point forward, the company’s eggplant program will be year-round, and SunFed hopes to eliminate seasonality from all its offerings in the long term.
“We envision a year-round program on everything that we’re doing,” Craig said, “with a smaller offering from November 1st through June 1st when Nogales will make up the larger portion of our operation.”
For SunFed, Texas serves as an important distribution hub from which the company can leverage its proximity to coastal markets to its advantage—particularly in the off season when decreased travel time can be a significant boon—providing optimally fresh product to consumers across the country.
“During the summer months, Texas is the natural destination point due to proximity of growing regions than anything else, whereas, because it’s a year-round opportunity, during the winter months, that is when we’re going to utilize our Texas operations to give us access to the entire East Coast,” said Matt Mandel, Vice President of Operations. “It’s a freshness advantage in that the supply chain going to the east coast will shave a day—sometimes two—off of transit times compared to Nogales.”
With new category expansions, increased logistical capabilities, and the promise of new product offerings to be announced later this summer, the future is as bright as the Texas sun for SunFed.
AndNowYouKnow will continue to report on this and other dynamic companies within our industry.
NEW YORK, NY - According to an updated regulatory filing submitted on Monday from meal kit purveyor, Blue Apron, the company has plans to raise up to $586.5 million in its initial public offering.
After public preparations for the move, the company, which announced plans to go public earlier this month, is saying that it will sell 30 million shares to investors at an estimated IPO price ranging from $15 and $17 per share, according to the New York Times. The company will trade under the ticker symbol APRN on the New York Stock Exchange.
Blue Apron ships ingredients and recipes for meals to its subscribers. The company has seen continued success in subsequent years. According to the source, approximately 1 million customers paid for Blue Apron kits in the first quarter of this year.
Meal kit companies have grown increasingly competitive over the past few years, and the upward climb for market share has been a steep one. One of Blue Aprons competitors, organic meal kit company Sun Basket, has reportedly hired investment bankers for its own IPO which may come as early as the second half of 2017.
How will evolving food formats continue to change the industry? AndNowUKnow will keep you informed.
COACHELLA, CA - The highly coveted California table grape season is getting underway, and helping to lead the pack in innovation, flavor, and quality, is industry powerhouse Castle Rock Vineyards. With ranches spread throughout California’s fertile growing regions, the company is positioned to provide grapes to its customers from May through December.
As the California harvest moves from south to north, I’m joined by Sales Manager Laura Berryessa and Sales Account Manager Steve Shearer, who share the exciting outlook for the season thus far, and what we have to look forward to as we move through the summer.
“We are seeing great quality and supplies on our grapes as the harvest in Coachella gets underway,” Laura shares. “Sizing and color have been very nice, and we are hitting the high marks on flavor. It’s setting up to be a great year for our customers.”
Castle Rock did get a later start this season, like most in the industry, but as always the team at Castle Rock waits till the fruit is just right, before they harvest.
“Although it was a later start than usual, we are building momentum across our program as we look to transition to California's Central Valley in early July,” Laura tells me.
Steve shares that Castle Rock has had great customer support on all of the company’s varieties, “But our premium varieties have been a major success around the world. We look forward to working with our partners to begin promotional volumes of these by mid-July in the San Joaquin Valley.”
Castle Rock has been a leader in the category for more than 20 years, growing and marketing premium California table grapes. By controlling every aspect of the growing, picking, packing, cooling, and shipping of its grapes, the company is able to consistently bring a premium product to market. Higher quality means a better eating experience for consumers, and reduced shrink at the store.
Excited for Castle Rock’s California table grape season? I know we are.
LEAMINGTON, ON - One of the year’s hottest greenhouse competitions saw Pure Flavor® bringing in another slew of awards this year, being recognized for the company's innovations in taste across all its full line of offerings. At the 10th Annual Greenhouse Competition at the Leamington Fair, the company’s gourmet Baby Cucumbers, Roma tomatoes, Aurora Sweet Long Peppers, English Cucumbers, Beefsteak tomatoes, and cluster on-the-vine tomatoes all garnered awards from the prestigious flavor-focused tournament.
“At Pure Flavor, we pride ourselves on delivering fresh, flavorful, great-tasting produce to the market. Year after year, these awards really help to confirm that we’re succeeding in doing so,” shared Jamie Moracci, President. “We know how strong the local competition is, so we really are very excited about our first place wins in the Best Mini Cucumber and Best Roma Tomato.”
Snacking cucumbers were once again a big win for the company, gaining recognition at the competition for the fourth year in a row. These award-winning cukes can be found in Pure Flavor’s Mini Munchies Vegetable Snacks for kids, newly wrapped in its child-friendly monster-themed packaging. The company’s new Mini Munchies vegetable packs feature products including Poco Bites® Cocktail Cucumbers, Aurora™ Bites Sweet Mini Peppers, and Juno® Bites Grape Tomatoes—perfect for any kids’ lunch or on-the-go snack!
The annual competition was again hosted by R.E.A.C.H. International, a local charity that works towards building clinics and schools, drilling water wells, and sponsoring and caring for impoverished children and families in Uganda, according to a press release.
“Knowing that all of the proceeds go towards such a great cause makes the event even better,” Moracci added. Pure Flavor also urged those who wish to learn more about R.E.A.C.H. International or make a monetary donation to visit www.reachint.org.
Congrats to our friends at Pure Flavor for another big win, and here’s to more flavorful innovations to come!
LOS ANGELES, CA - Giumarra has announced the transition of Gary Caloroso to its corporate marketing team. Caloroso will assume the role of Regional Business Development Director, having previously served as the Director of Marketing for Giumarra’s avocado and asparagus divisions.
“I’m so honored to have this incredible opportunity to serve the Giumarra Companies in this expanded role,” said Mr. Caloroso, in a company press release. “I’m truly blessed that I get to work with more of our great team.”
In his new role, Caloroso will manage select customer accounts across the Midwest and East Coast regions and be responsible for growing business and executing targeted promotions, advancing Giumarra, the Nature’s Partner brand, and its corporate tagline, “Feeding the world in a healthy way.”
“We are pleased to have Gary join the marketing team in a role that allows him to apply his strong marketing and promotional background to our complete line of products,” noted Hillary Brick, Senior V.P. Marketing. “He brings great knowledge of our company and customer base developed through his past five years spent working with our avocado and asparagus teams.”
In his new role, Caloroso will operate out of Los Angeles, California.
We at AndNowUKnow congratulate Gary on his new role and wish him and Giumarra the best in their future endeavors.
KINGSVILLE, ON - Another year, and SUNSET® has done it again! This year at the Leamington Greenhouse Competition, the company won seven awards and secured the honor of the most award-winning contestant over the last ten years.
Along with Most Awarded, SUNSET® took home top honors in six other categories, including: Specialty Tomato, Kids’ Choice Tomato, Specialty Bell Pepper, Red Bell Pepper, Kids’ Choice Cucumber, and best of all, the coveted People’s Choice Tomato.
“We’re very excited this year’s competition was so successful,” said Paul Mastronardi, CEO, according to a press release. “It’s especially rewarding to be honored as the most-awarded contestant over the last decade. These numerous awards over the years are a testament to the strength of the SUNSET® brand and its commitment to innovation and flavor.”
This commitment to innovation and flavor were exemplified at the competition as SUNSET® won a People’s Choice award, as well as two Kids’ Choice Awards. In addition, SUNSET® dominated the Specialty Tomato category, taking all 3 top spots with Mini Kumato® taking first place.
“People’s Choice Tomato is a special award, because it comes directly from our consumers and our community,” shared Paul Mastronardi. “Along with that, winning all three spots in the Specialty Tomato category and taking first place in Specialty Bell Peppers just confirms that consumers really love SUNSET® flavor.”
The annual greenhouse competition is hosted by R.E.A.C.H. International, a locally funded charitable organization, with proceeds going toward the funding of schools and clinics in UGANDA.
From the staff here at AndNowUKnow, congratulations to the SUNSET® team for this accomplishment!