WASHINGTON, DC - The U.S. Department of Agriculture (USDA) announced that Martinez Fresh Produce LLC satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA).
According to a recent USDA press release, the Dallas, Texas, company has met its obligations and is now free to operate in the produce industry. Arturo Martinez Isguerra was listed as the officer, director, and major stockholder of the business and may now be employed by or affiliated with any PACA licensee.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license of a 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.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named responsibly connected individuals. USDA will only reinstate the license of a business to an active status if all reparation awards are satisfied and if the license is not terminated.
In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. USDA 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.
GRAND RAPIDS, MI – Produce for Kids® has joined forces with Meijer this month to raise funds for the Jump with Jill education program, a rock and roll nutrition show, and bring the educational program to schools within the Meijer footprint. Armed with catchy songs, upbeat dance moves, and a hip wardrobe, Jump With Jill is a program designed to engage kids on the subject of health and leave them empowered to eat better.
“With the growing number of shoppers using grocery delivery services, it’s important that Produce for Kids campaigns evolve along with the shopper,” said Trish James, Vice President of Produce for Kids. “In our efforts to create a healthier generation, we must now capture the shopper both in-store and in the digital space.”
In a press release, Produce for Kids noted that this year’s campaign features new digital elements that will enhance the campaign and reach the growing segment of grocery delivery shoppers and digital coupon users through Shipt and the Meijer mPerks program.
During the Produce for Kids campaign, Meijer shoppers using home delivery service from Shipt can identify Produce for Kids campaign produce sponsors in a dedicated in-app category. The call out is designed to drive sales of campaign partner products through the Shipt app and provide additional consumer exposure during the campaign.
“At Meijer, our mission is not only to provide our customers with a fresh and healthy experience every time they enter our stores, but also to create strong local communities through school programs like Jump with Jill,” said Tina Miller, MS RD Meijer Healthy Living Advisor. “We are proud to partner with Produce for Kids on an effort that encourages our shoppers to introduce fresh fruits and vegetables to their families.”
In-store displays and signage showcasing the world’s only rock & roll nutrition show and housing recipe card takeaways, will be displayed in Meijer produce departments, complete with a list all partner produce companies. Signage will direct shoppers to www.produceforkids.com/meijer, a page featuring more than 300 registered dietitian-approved and family-tested recipes, meal planning tools, a chance to win a Shipt membership, grocery store-specific campaign details, and healthy tips from real parents. Signage will encourage shoppers to share their own healthy recipes and ideas using the hashtag #poweryourfamilymeal.
Through its partnership with Produce for Kids, Meijer and produce company partners have raised more than $1.2 million to benefit children's charities. Produce for Kids and its partners have supported the implementation of 100 Jump with Jill rock ‘n roll nutrition shows at schools in Michigan, Ohio, Illinois, Wisconsin, Indiana, and Kentucky.
The Jump with Jill show will perform at four Meijer grand opening events. A complete listing of events can be found at jumpwithjill/tour. For more information about the Meijer and Produce for Kids campaign, visit produceforkids.com/Meijer.
AUSTRALIA – A recent decision to drop a damages case against self-proclaimed Spud King Tony Galati has several potato growers considering suing the state government.
According to ABC (Australian Broadcasting Company) News, growers had been seeking millions of dollars in damages from Galati for failure to obey the strict limits imposed by the Potato Marketing Corporation (PMC), a now defunct organization overseeing potato growing regulations.
The PMC originally filed a civil case seeking $5.8 million in damages from Galati, but late last year, the industry was deregulated, the PMC’s authority dissolved, and the government inherited the case.
Premier Mark McGowan, a longtime supporter of Galati who campaigned for the abolition of the PMC, told Parliament last month that the government decided to drop the civil proceedings.
"Suing someone for growing potatoes is wrong, stupid, absurd, ridiculous, out of touch, and quite frankly, preposterous," Mr. McGowan said. "And so we took the action we did."
Growers who took the lawsuit to court initially were frustrated with the decision and accused McGowan of siding with Galati against law-abiding farmers.
"For [the Premier] to come in and play judge, jury, and executioner and drop the damages claim against the grower is extremely disappointing," said Pemberton Grower Glen Ryan, a former PMC board member. "So we decided to get that legal advice, and there are several opportunities, I suppose, that we could look at—including what role the Government has played in removing this case and if there is in fact a claim by growers against the Government."
With aggrieved growers considering their options, will the Spud King be deposed and punished as a scofflaw? AndNowUKnow will continue to report on this and other legal matters in the produce world.
CANADA – The ongoing legal battle between Trader Joe’s and its counterfeit counterpart, Pirate Joe’s, may just well be over. The Founder of the illegitimate Canada-based retailer closed its doors earlier this week.
Pirate Joe’s made the announcement on its Facebook page, stating that it planned to close its doors on Wednesday. The New York Times reported that Pirate Joe’s officially stopped selling at 12:01 a.m. local time on Thursday.
Both sides of the lawsuit reached a settlement on Wednesday, the New York Times stated. Trader Joe’s has yet to comment on the settlement, or the case at large. Trader Joe’s first extended a cease-and-desist letter to the single-store unauthorized retailer when it opened, followed by a lawsuit that alleged trademark infringement, unfair competition, false designation of origin, and false advertising.
This announcement comes after nearly five years of a legal battle brought forth by Trader Joe’s. First opened in 2012 by Mike Hallatt, Pirate Joe’s shelves were stocked by goods purchased from the nearest Trader Joe’s in the U.S., nearly 55 miles from Vancouver.
Hallatt was banned from Trader Joe’s in order to prevent him from purchasing the goods and then reselling for his own business, but Hallatt persisted the purchases by using disguises or had other people purchase the items.
"I'm mostly relieved, I have to tell you,” said Hallatt, according to The Guardian. “Many times I’ve thought, 'I’ve got to just give this up, this is ridiculous.'"
The case was first dismissed by U.S. courts, only to be recently revived by the 9th Circuit U.S. Court of Appeals. Pirate Joe's and Trader Joe's were due to meet this November in court. Legal analysts noted the unique and important nature of the case, previous to this development, as the case would’ve addressed trademark concerns that had happened in Canada but with U.S. jurisdiction.
Aldi-owned Trader Joe’s has yet to expand its footprint to Canada.
For more updates on the legal issues and the buy-side sector at large, AndNowUKnow has you covered.
PHARR, TX - It’s not easy to become a one-stop shop in the produce industry, but Triple H Produce is up to the challenge. Having launched its comprehensive new fruit division earlier this year, I spoke with Midwest Sales Manager Juana Elortondo about how the company plans to be a full-service provider for all of its retail customers.
“Our main goal is to become the one-stop shop solution for our customers in the U.S. and Canada for produce out of Mexico and we’re one step closer to achieving that goal,” Juana tells me as we discuss the company’s plans for the future. “We’re excited about this because we want our clients to feel confident in our ability to provide solutions and be the go-to partner for their business”
Persian limes and table grapes are hot for the summer, but Marketing Manager Alicia Garza told me earlier this year that strawberries, blueberries, and mangos out of Mexico are also part of the company’s new all-star lineup.
Want to learn more about Triple H’s fruit division and the company’s full line of products? Watch my full interview with Juana above.
SANTA PAULA, CA - Limoneira has closed out the second quarter of fiscal 2017 on a high note, touting an increase in revenue and an eye on further growth.
"Our solid lemon sales in the second quarter coupled with the efficiencies we are realizing from our packing facility drove a significant increase in our profit margins and cash flow,” said Harold Edwards, President and Chief Executive Officer. “We are very proud of the team's efforts at our new lemon packing facility, which resulted in a per carton packing cost reduction of 19% in the second quarter. We continue to focus on the strategic expansion of our One World of Citrus™ marketing program and increased relationships throughout the world which are enabling us to expand our share of the global citrus market."
Limoneira also successfully closed its acquisition of 90% of the outstanding stock of privately owned Chilean corporation Pan de Azucar S.A ("PDA") for $5.8 million in cash at the end of February, according to the financial report.
"The acquisition of PDA continues to position us to execute on our long-term strategy to expand our agribusiness internationally as a year-round supplier of citrus, complementing our One World Of Citrus™ strategy,” commented Senior Vice President Alex Teague. “We are also pleased with the performance of our new lemon packing facility. During the first six months of fiscal year 2017, we packed 300,000 more cartons of lemons for approximately $300,000 less cost compared to the same period last year. We are proud of the gains we are making in our new packing house and intend to maintain this momentum in the future."
Additional highlights from the company’s second quarter, ended April 30, 2017, include:
- Total net revenue of $36.9 million, a 35% increase from a total net revenue of $27.4 million in the second quarter of the previous fiscal year
- Total costs and expenses were $30.7 million, compared to $25.2 million in the second quarter of last fiscal year, primarily attributable to increases in agribusiness costs and are consistent, Limoneira said, with its strategy of increasing sales volumes for fruit procured from third-party growers.
- Operating income for the second quarter of fiscal year 2017 increased to $6.2 million, compared to income of $2.2 million in the second quarter of the previous fiscal year.
- Adjusted EBITDA was $7.8 million in the second quarter of fiscal year 2017 compared to $3.4 million in the same period of fiscal year 2016.
Much of the increased revenue was attributed to strong lemon sales, and Limoneria said in the report that, based on improved total lemon revenues for the second quarter of fiscal year 2017 and an improved pricing outlook for avocados, it’s raising its earnings guidance range for the fiscal year ending October 31, 2017.
"As we enter the third quarter of fiscal 2017, we remain confident that the key drivers of our growth that contributed to our first half performance will remain in place in the second half. Based on anticipated favorable avocado pricing and robust lemon revenues, we are raising our full year fiscal 2017 earnings guidance," Edwards concluded.
With a leading global agribusiness that includes prime agricultural land and operations, real estate and water rights in California, Arizona, and Chile, and a monthly strategy to continue to boost citrus consumption, AndNowUKnow will continue to keep you up to date on this and other growing produce companies.
KINGSVILLE, ON & MADISON, ME – Mastronardi Produce has announced a new extension to its professional family. The leading grower and distributor of specialty and commodity greenhouse produce in North America announced that it has acquired New England year-round greenhouse tomato grower Backyard Farms®.
“We have long been impressed with Backyard Farms’ commitment to fresh, high-quality tomatoes,” said Paul Mastronardi, fourth generation President and CEO of Mastronardi Produce. “Backyard Farms® not only is a growing, customer-focused tomato grower with a strong and well-known presence in the Northeastern United States, but it also shares the same community-centric ethos that drives Mastronardi. Being a family-operated business, we have long prioritized our local communities and a ‘fresh from the farm’ commitment to our customers that we believe are critically important to our success.”
The Backyard Farms brand name will be retained and continue to represent high-quality locally grown produce, according to a press release, and greenhouse operations in Madison, Maine will continue uninterrupted, as it has since it was founded a decade ago.
Together, Mastronardi Produce and Backyard Farms will supply flavorful world-class, non-GMO verified tomatoes, peppers, and cucumbers to the top food retailers in North America.
“With Backyard Farms’ complementary capabilities, loyal and passionate customer base, growing footprint and enthusiasm for premium, vine-ripe tomatoes, we are excited for what our future holds together,” Mastronardi continued. “We look forward to working alongside Stuart Jablon and his talented team as we continue serving customers the great produce they have come to expect from the familiar SUNSET® and Backyard Farms® brands.”
The combined company stated it will be better positioned to serve the underrepresented Northeastern region of the United States, where retailers focus on meeting consumer demand for locally grown, fresh produce.
“We are excited to be taking our business to its next level of operations,” said Stuart Jablon, who will continue to lead Backyard Farms, which is now an operating wholly-owned affiliate of Mastronardi. “Joining the Mastronardi team allows us to continue expanding our business to reach more customers while remaining committed to growing the freshest, best-tasting fruit possible and deepening our community relationships. We look forward to being a part of a market leader and making sure that customers continue to receive fresh and high-quality produce throughout every season.”
Backyard Farms operates two greenhouses totaling 42-acres in Madison, Maine, producing and delivering fresh tomatoes to the Northeastern United States year-round, including:
- Tomatoes on the vine
- Cocktail tomatoes
- Beefsteak tomatoes
Backyard Farm’s items appear on the shelves of grocery stores from Maine to Maryland. The addition of Backyard Farms will increase Mastronardi Produce’s internal greenhouse network to six locations across North America, and will increase the combined company’s headcount to approximately 3,000 employees, the release noted.
In total, Mastronardi produces and delivers fresh, locally grown flavorful produce to retailers from more than 4,000 productive acres of growing capacity.
BATAVIA, IL - Aldi is giving its southeastern Wisconsin stores a produce-based facelift, investing $37 million to remodel 23 stores. The competitive market should see the remodels take place over the next two and a half years, according to a report from the Milwaukee-Wisconsin Journal Sentinel, placing a further emphasis in fresh produce and organic fruits and vegetables.
The source states that the $37 million store revamps will include, along with produce and organics, bolstered bakery and dairy sections. Stores will be brightened up with natural light and a repainting, ceilings will be raised, and more space will be added to smaller locations.
“I think what they’re trying to do is retain the customer that they have, and that’s certainly an income-constrained shopper, but also expand a little bit to reach more of a middle-income shopper as well,” Neil Stern, Senior Partner at Chicago’s McMillanDoolittle told the Sentinel.
Aldi’s Wisconsin locations typically have 10,000 to 11,000-square-feet of floor space. Atty McGrath, Vice President of Aldi’s Oak Creek division confirmed that expansions would not increase that space to more than 12,000-square-feet.
Aldi isn’t the only grocer looking to refresh its presence in the Wisconsin market. Kroger and subsidiary Roundy’s reported will spend more than $50 million remodeling its Milwaukee-area stores this year.
Last month, Aldi announced a similar remodel plan in the Washington, DC-market. That $30 million investment included new looks for 30 DC locations.
As competition increases in Wisconsin and the rest of the Midwest, the battle will continue to rage on. Stay tuned as AndNowUKnow covers the latest strategic moves.
WENATCHEE, WA – As summer snacking season comes knocking, Stemilt Growers has announced that its summer apple program is opening its doors to unleash some of its best apples yet.
“Summer is really a big time for apples, even though it’s not traditionally thought of as apple season,” said Marketing Director, Roger Pepperl, adding his belief that the summer months play a large role in apple sales and can increase produce department dollars significantly with effort through the end of August. “With the ability to store apples in our controlled atmosphere (C.A.) storage rooms, we are able to provide retailers with high quality, high color, and flavorful apples year-round.”
In a recent press release, the grower names a number of key varieties to boost retail summer apple programs, including:
- Consumer favorite Fuji
- Increasingly-popular Pink Lady®
- Red Delicious and Golden Delicious, available all summer long in various sizes
- Galas, which will last steadily through July and can be great for Lil Snappers®, Apple Lovers, and bulk promotion
- Piñata® will last through the summer, with plenty of options in sizes, including bulk sizes and Lil Snappers
The Fuji apple, whose high brix levels help it store exceptionally well in CA storage rooms, came in as one of the top varieties last year behind the Gala and Red Delicious apples.
Stemilt’s Aztec, the grower’s high color and high flavor strain of Fuji, has grown increasingly popular among consumers, resulting in an 8 percent increase in volume year-over-year.
“Retailers should take advantage of the multiple sizes that Stemilt has available and is currently pulling out of C.A. rooms,” said Pepperl. “Our Aztec Fuji’s are peaking at size 72, with plenty of 88’s, 80’s, and 64’s to go around–with those various sizes, you will please a variety of consumers who like to purchase small, medium or big apples. During the summer, retailers should consider special in-store promotions on with our Apple Lovers 5 lb pouch bag to further drive sales.”
With a 4.7 percent stake, Pepperl said that apples are a huge portion of summer produce dollars. With this in mind, the Marketing Director added that, in addition to taking advantage of Fuji apple opportunities, retailers should push the increasingly popular Pink Lady varieties.
“Stemilt is a pioneer in orchard development with the Pink Lady apple variety. We’ve been growing it in a big way since it was first introduced, and that long-time leadership has culminated to this increased volume and dollar amounts,” commented Pepperl. In addition to being an industry leader in Pink Lady, Stemilt said it saw a 19 percent increase in volume and a 22 percent increase in dollars for the variety last year from June through August.
“Retailers will see large success with Pink Lady apples as they are a versatile fruit for summer,” Pepperl added. “Whether you use them to snack on or chop them up and toss them in a salad, they will add a refreshing flavor and a vibrant color without browning too quickly–a win-win for every type of consumer.”
Another advantageous in-store focus listed was targeting parent consumers using the Lil Snappers kid-sized fruit brand to display the full range of bulk sizes, as well as an in-store special promotion for the Apple Lovers 5 lb bag–a huge selling point for consumers who want value, according to the grower.
Pepperl added that retailers should also run promotions on d’Anjou and Red d’Anjou pears.
“Although not the focus in produce during the summer months, apples and pears can still do wonders for your produce department,” said Pepperl. “That 4.7 percent equals 1 in every $20 spent in the produce department, so continue to boost, boast, and bolster apples and pears until you get through the end summer season.”
With plenty of Rushing Rivers™ 5 lb Anjou and 4 lb Red Anjou pouch bags, retailers can see sales and volume increase with feature advertisements. To help pears not be overlooked amongst the fruits in the department, Stemilt advises in-store advertisements when print advertisements are not possible to drive sales volume up. Here too, retailers can use Lil Snapper d’Anjou’s as a refreshing, clean snack for kids throughout the summer.
As we approach the official start of the warmest season, keep checking in with AndNowUKnow.
IMMOKALEE, FL – Lipman Family of Farms is continuing its sizeable investment into the next wave of consumers and industry leaders. The company recently donated $13,500 in college scholarships to graduating seniors of Immokalee High School.
“Our founder, Max Lipman, never received a formal education,” said Jaime Weisinger, Lipman’s Director of Community Relations. “But he made sure that every one of his six children had the opportunity to go to college. At Lipman, we understand that a good education is part of the foundation for success, and we are dedicated to helping the youth in our community reach their full potential."
Nine students received the scholarships, according to a press release. The awards ranged from $500-$2,000. The scholarships from this year alone have the potential to be worth $80,000 in total, if all the recipients renew them every year.
“Going to college has always been a dream of mine,” said Azaria Howard, one of the recipients. “I am extremely thankful for Lipman’s generosity and am committed to making them proud of this investment in my future.”
Azaria graudated from Immokalee High School with a 4.63 GPA, and plans to attend the University of Florida this fall. Azaria was the captain of her high school volleyball and basketball teams, and is the oldest of six siblings.
In order to be considered for the scholarships, students had to fill out an extensive application, and submit their high school transcripts, financial information, and an essay.
Lipman has contributed more than $260,000 in scholarships to local students since 2012.This year, Lipman will also give out a total of $25,000-$30,000 in scholarship renewals.
As Lipman continues to focus on the future of our industry and all those involved, count on AndNowUKnow for the latest.