INDIANAPOLIS, IN - In the latest installment of turbulence from the retail arena, Marsh Supermarkets has announced that it has filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware.
"While today's decision was extremely difficult, we believe this action is necessary to preserve the value of the business as we seek a sale," said Chief Executive Officer Tom O'Boyle. "After reviewing every alternative, we concluded that Chapter 11 clearly provides the most effective and efficient means to ensure the best recovery for the Company's stakeholders."
According to a press release, the company has taken this step in order to continue business as usual while it continues seeking a buyer at all of its 44 locations. Filing Chapter 11 allows the 86-year-old grocery chain to remain open and serving customers, continue employing staff with their usual salary and benefits, and pay for the purchase of goods and services in the ordinary course of business. As is customary, the filing triggers an automatic stay, which precludes the company from paying amounts owed for pre-petition goods and services without a court order. Marsh also has sought approval to continue customer programs as normal, and to continue the closing store sales at select locations.
Marsh has asked the Bankruptcy Court's permission to use its available cash to fund operations during this period, since the company's secured lenders have already agreed to allow the company to do so. The retailer expects to have sufficient liquidity to fund operations throughout the sale process.
As we've previously reported, the company has been on shaky ground for a while, with rounds of prospective store closures in March and earlier this month. In recent years, the company has struggled to compete effectively against larger national and regional chains that have made the Indiana and Ohio grocery marketplace among the nation's most competitive.
According to the release, the crowded environment has led to price-cutting and other forms of promotional activity that have put profit margins under extreme pressure. Marsh has reacted this year by closing 21 unprofitable stores and, in late April, the sale of its in-store pharmacy business. The result is a chain of 44 stores that Marsh believes can be a valuable acquisition or merger partner for a grocery company or other buyer.
Earlier this month another supermarket chain, Central Grocers, also announced it was voluntarily electing for Chapter 11 Bankruptcy, while other retailers have been massively shifting strategies. As the retail landscape continues to shift with new formats and technology, how will traditional retailers fare? Continue checking in with AndNowUKnow as we report the latest.
WASHINGTON, DC – Fairway Georgetowne LLC, operating out of Brooklyn, N.Y., has posted a $25,000 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 a 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.
IRVINE, CA – Over Memorial Day weekend, the avocado industry estimates that 123 million pounds of Hass avocados will be eaten, and the California Avocado Commission (CAC) is rolling out its sixth annual program supporting avocado sales during summer holidays with a big push.
“Memorial Day continues to be a sweet spot for California avocado merchandising activity,” said Jan DeLyser, Vice President Marketing, in a press release. “For the targeted retailers who carry California avocados, the timing of Memorial Day and crop availability plus California’s origin create a golden opportunity for thematic marketing.”
For 2017, the commission has developed the promotional theme, “United Plates of America,” and the CAC is working to make California avocados synonymous with the key American summer holidays by highlighting their origin and ability to make recipes and get-togethers even more special.
As part of the push, the commission has created a United Plates of America retail recipe booklet—currently available to retailers who merchandise California avocados—that includes 18 recipes and tips pairing California avocados with “plates” from the USA, particularly from California and Western states.
“There really isn’t anything that brings people to the table–and to the store–better than the fresh, creamy taste of California avocados in season, and CAC’s United Plates of America marketing activities will give shoppers more reasons to do so,” added DeLyser.
Other CAC retail programs for Memorial Day and summer holidays include demos, point-of-sale material, and display bins. The commission’s advertising support will also include in-store radio and Pandora radio targeted ads, online advertising, social media, and consumer public relations outreach to drive home the United Plates of America theme.
The commission noted that the California avocado harvest is on track to hit 200 million pounds by the end of the season, and harvesting and distribution is well underway and is anticipated to be strong through Fourth of July. The CAC is planning email blasts to its fans and Memorial Day and Fourth of July blog posts that encourage usage of California avocados for summertime picnics and parties.
For more on all things produce, check in with us at AndNowUKnow.
ELGIN, MN – With the Chilean apple season kicking off to great acclaim, U.S. consumers are soon to have their pick of premium Honeycrisp apples from Honeybear Brands. The company has reported a record shipment of the variety due to arrive this week, with the biggest volume crop to date.
“We made a commitment to our retail partners a long time ago to bring them premium varieties with a just picked freshness wherever and whenever they need it,” said Don Roper, Vice President, Sales and Marketing.
Due to arrive at major retail stores this week, the company stated that this shipment comes just in time to supplement its customers’ inventory when domestic Honeycrisp supply is low, and flavor is waning from months of cold storage. Retailers can find boosted sales with the just picked freshness, color, and taste of the 2017 Chilean crop.
This year marks the biggest volume to date in Honeybear Brands’ ten-year program. This increase in volume is due to the natural maturation of the Chilean orchards, excellent conditions, and the exceptional growing partners who understand the many nuances of growing and optimizing premium apple production in local micro climates.
The company stated that Chilean Honeycrisp is a big opportunity for its retail partners. Each retail customer of Honeybear Brands can provide an exceptional, differentiated product in addition to Honeybear’s programming which aggressively drives new and increased sales at a traditionally slow time of year for apple sales.
“Clearly our just harvested Southern Hemisphere crop provides a much improved flavor profile for customers versus domestically-grown Honeycrisp at this time of year,” continued Roper. “Honeycrisp grown in the United States was harvested eight months ago and has lost its distinctive crispness as well as the delicate balance of sweet and tart flavors that really sets the apple apart from all others. Honeybear’s Chilean Honeycrisp crop capitalizes on the fresh orchard-picked eating experience consumers have now come to enjoy and crave.”
Leading retailers offering the Honeybear Chilean Honeycrisp include Hy-Vee, Publix, Loblaws, United Supermarkets, Cub Foods, SuperValu, Central Market, Coborns, and Sam’s Club. Honeybear Brands’ Honeycrisp apples can be found in more than 100 markets across the country.
Honeybear Brands and its parent Wescott Agri Products were granted exclusive production and commercialization rights for the Chilean Honeycrisp by the University of Minnesota, developer and owner of the original variety. The company stated that it was one of the first to grow Honeycrisp in Washington state and Chile, and is widely recognized as a premier Honeycrisp label in the United States.
As apples continue to ramp up, stick with AndNowUKnow for all the latest.
SALINAS, CA – Moxxy Marketing has announced the promotion of Debbie Blevins. The erstwhile Account Coordinator has been named Junior Account Manager.
"Debbie is a super star," said Karen Nardozza, Principal of Moxxy. "She holds herself, and all of us at Moxxy, to the highest standards, which results in exceptional work for our clients. She is a trusted and valued colleague to her coworkers and her clients, and this promotion is well deserved. Plus, she is a joy to be around—her skills and enthusiasm for all she does are only eclipsed by her demeanor and smile. We are proud to have Debbie on our team."
Debbie joined Moxxy in February of 2016, according to a company press release. At that time, the ambitious and career-focused manager was a recent graduate of California State University, Stanislaus, where she earned Bachelor’s degrees in both graphic design and business administration, marketing—graduating summa cum laude in both disciplines. She also received the Dean's Award of Excellence for Outstanding Student Achiever in Marketing, and was accepted into the Phi Kappa Phi and Beta Gamma Sigma honor societies.
Debbie had also worked in graphic design and social media for the Downtown Turlock Property Association and the CSU Stanislaus Police Department.
In her current position, Debbie will support the Moxxy account service team and handle projects ranging from packaging design to print and digital ad campaigns, sales collateral, email campaigns, tradeshows, PR, photo and video shoots, web development, and more. Debbie has worked with clients including Braga Fresh Foods, Sakata Seed America, Smith Family Wines, and other food and agriculture brands.
The company’s press release also noted that Debbie has long been active in her community, volunteering from a young age for the "Little Hands for Agriculture" exhibit at the Merced County Spring Fair, then for the Merced County 4-H Science and Adventure Camp, and as an assistant music teacher. In college, Debbie volunteered for the Sociology Club Christmas in a Shoebox program, and served as Vice President of Outreach for the CSU Stanislaus Faculty Mentor Program. She also designed and sold jewelry under her business, Mermaid Accessories, and tutored K-12 students in math, language arts, Spanish, and science.
Debbie lives in Los Banos. When she isn't working, or driving insanely long distances to get to and from work in Salinas every day, Debbie enjoys art and culture, and makes trips to San Francisco with friends as often as possible. She also enjoys travel, and is currently planning her honeymoon. She will marry her longtime sweetheart, David Cintora in June.
Congratulations, Debbie, on the promotion! AndNowUKnow wishes you the best in all your future endeavors.
AUSTIN, TX - As rumors continue to swirl of a potential buyout of the popular retailer, Whole Foods is pursuing a shakeup to its leadership in order to further strengthen its buy-side position. The company has announced that it has replaced five members of its Board of Directors, in addition to naming a new chairwoman and a new Chief Financial Officer.
“We are accelerating our path to enhanced value creation to deliver better returns for our shareholders,” said John Mackey, Co-Founder and CEO. “Today’s announcement is a powerful combination of accelerated initiatives and new cost savings with clear timelines to deliver. We are on a path to return to positive comparable store sales and earnings growth next year. Our increased dividend and new share repurchase authorization demonstrate our Board’s confidence in our long-term growth strategy and continued ability to generate strong cash flow. The Board will continue its comprehensive review of all opportunities to create value. We look forward to continuing our dialogue with shareholders and providing future updates on our progress.”
Whole Foods has appointed Keith Manbeck as its new CFO, according to a press release. Nasdaq.com reported that Manbeck would be stepping into his new position, effective May 17, 2017, bringing 20 years of financial and operations experience with him. Manbeck will be looking to help the company engage in an accelerated plan to enhance shareholder value. Most recently, Manbeck served as SVP of Digital Finance, Strategy Management, and Business Transformation at Kohl’s Corporation.
Further boosting its new operational focus, Whole Foods has announced a sizable reshaping to its Board of Directors. As the company appoints five new faces and a new leader to the Board, the Wall Street Journal speculated that this move was made in an effort to show that the chain is open to change, and resultant of efforts to “fend off a potential Board fight with activist investor Jana Partners, LLC.” As we previously reported, Jana Partners scooped up an 8.3 percent stake in Whole Foods, and there has been speculation that the group is pushing the retailer for a sale.
As its new Chair of the Board, and its Chair of Nominating & Governance Committee, Whole Foods has named Gabrielle Sulzberger to the positions. Sulzberger has served as an independent director of the company since 2003, according to a release, in addition to serving on public company boards. Through her experience, she is able to provide Whole Foods with financial, M&A, and risk assessment expertise.
The Whole Foods Market Board of Directors will now encompass 12 Directors, 10 of whom are independent, with 6 having been replaced in the past 7 months. Mackey stated in a release that the new five appointments, listed as follows, will well position the company for its next stage of growth:
- Ken Hicks: former Chairman, President, and CEO of Foot Locker. Bringing over 29 years of marketing and operational experience to the role.
- Joe Mansueto: Founder and Executive Chairman of Morningstar, and executed more than 30 strategic acquisitions during his tenure.
- Sharon McCollam: former EVP, Chief Administrative, and CFO of Best Buy. Bringing nearly 20 years of experience as a retail senior leader.
- Scott Powers: former EVP of State Street, and President and CEO of State Street Global Advisors, with more than 30 years of executive experience and shareholder insights.
- Ron Shaich: Founder, Chairman, and CEO of Panera Bread with over 35 years of CEO experience.
The New York times stated that this Board Member refreshment, and new CFO, comes from the company’s restless shareholders, including Neuberger Berman. The source cited that Jana Partners was urging Whole Foods to select four new nominees, with Whole Foods opting for its own five appointments.
As Whole Foods looks to gain more ground, the company also announced the following updates to its strategic initiatives:
- Accelerated Affinity Program rollout to all U.S. stores by end of 2017
- Restructuring purchasing program by end of 2017
- Implementing category management by end of fiscal 2018 to all U.S. stores
- Updated total sales goal of over $18 billion by 2020
- Positive comps and earnings growth by fiscal year end of 2018
- Realizing $300 million in additional cost savings by fiscal 2020
The company also reported a total sales increase of 1.1 percent to a record $3.7 billion, net income of $99 million, in addition to other movement in its 2017 Q2 that can be viewed here. Seeking Alpha reported that the retail beat expectations on its revenue by $10 million.
Is Whole Foods still poised for a sale, or will these strategies help the retailer boost its own prowess? AndNowUKnow will report.
MONHEIM/ABBENES - Behind the United States, The Netherlands is one of the world’s largest exporters of agricultural products, making it a key player in the global economy. As such, Bayer has announced the launch of ForwardFarming, an initiative working with independent farms to advance sustainable ag, with Het Groene Hart in Abbenes, North Holland.
"We have lively discussions and debates here among various stakeholders about new innovations and opportunities for local and global farms," said Damien Viollet, Head of Benelux Region for the Crop Science Division of Bayer, according to a press release. "Het Groene Hart serves as a representative role model for others in the area, and around the world."
Despite its small size, The Netherlands is an optimal place to test efficiencies and environmentally sustainable practices that will help support a food system that faces a growing global demand. Het Groene Hart is an independently owned farm that will work with Bayer and other partners to implement innovative agricultural practices. With the ForwardFarming network, Bayer provides an opportunity for demonstration, dialog, and collaboration through integrated crop solutions, proactive stewardship, and partnerships.
According to the release, Het Groene Hart is run by sixth-generation farmer Jasper Roubos and produces potatoes, wheat, onions, and sugar beets on 85 hectares of very fertile polder soil. Digital farming techniques, such as GPS informed precision spraying, operational safety procedures, and biodiversity enhancement methods are all demonstrated on the farm. Such elements enable Roubos to take a holistic approach to sustainable farming.
"I decided to participate in the Bayer ForwardFarming program because I want to show that economic success can co-exist alongside an innovative and responsible environmental approach," said Jasper Roubous, Head Farmer at Het Groene Hart. "I frequently have productive discussions with partners, community members, and fellow farmers who visit, and I’m able to implement new ideas that raise my farm’s sustainability to a higher level."
This year, The Netherlands hosted the Global Forum for Innovation in Agriculture Utrecht. An event celebrating the official launch of Het Groene Hart as a BayerForwardFarm was the perfect way to close the week of discussions about sustainable practices spurred by new innovation and insights.
"We are very proud of the work that has already been accomplished at Het Groene Hart, and look forward to supporting the advancement of sustainable agriculture on this farm, and throughout our ForwardFarming network in years to come," added Liam Condon, Member of the Board of Management of Bayer AG and Head of the Crop Science Division. Het Groene Hart is the fifth role-model farm in Bayer’s ForwardFarming network, which will be further expanded in Europe as well as in Latin America and North America.
Join the dialog by visiting http://www.forwardfarming.com and following #ForwardFarming.
BROOKS, OR – Spring is sounding its song as we move full force into May, with berries fully in bloom for the upcoming blueberry season. As the industry preps for a later start to the Oregon season, Curry & Co. is gearing up for a tight market to kick things off, and ample volume to last throughout the season.
As President Matt Curry tells me, the company expects to start harvesting consumers’ favorite blues by the end of June, putting the season’s start 7 and 21 days behind the 2016 and 2015 crops, respectively. This, Matt assures me, makes for a more “typical” timeframe for the Oregon berry industry.
“This year we project a strong crop with good volumes and nice quality, just a bit later in the year than last year,” Matt tells me. “Oregon and Pacific Northwest berry crops continue to grow, both in new plantings and through Oregon routinely harvesting the highest crop yields per acre than other states.”
Oregon saw a longer winter than usual with higher levels of rain and snow. This kind of weather pushed the blueberry crop back further than initially projected, but this was the only effect that the winter had on the upcoming harvests.
“The market will likely be a bit tight once the season gets going, as imports didn’t fill U.S. demand this year,” Matt shares. “Retailers are eager for a homerun. If we market the crop correctly, we should have enough promotions booked to make it without a dip in price and demand. Blueberries remain a leader in produce departments, however, so they are able to weather some price changes.”
The category should hit a shoulder in early June as the season ramps up, and again at the end of September when imports are slated to begin. Matt expects the season to peak during the months of July and August, starting strong with Fourth of July promotions with continuous steady and heavy volumes into late August.
“Our Oregon berries have a strong and loyal following on the West Coast specifically. This year, we will once again be offering a series of ‘locally grown’ blueberry stickers on the clamshells to help drive ‘local’ in the Pacific Northwest,” Matt continues.
As Curry & Co. looks to drive forward all things blues this season, keep up with AndNowUKnow for the latest in berries and beyond.
BROOKLYN, NY – In what’s being dubbed “the world’s first,” Avocaderia has opened a quick serve avocado bar with a menu predominated by dishes derived from the pale green treat.
Located inside the Industry City Food Hall in Brooklyn, Avocaderia’s all-avocado offerings include bowls, salads, toasts, and smoothies, according to ABC News.
“Avocados make just about anything better,” notes the Avocaderia's website. “We have developed tasty recipes just for you: we smear 'em onto toast, mash 'em into guacamole, or top your morning eggs with a couple slices. Whatever your day feels like, we give it the perfect taste.”
In addition to traditional chartreuse fare like guacamole, the bar offers specialties like tuna and avocado ceviche, according to the New York Times, and Fox News notes that the restaurant incorporates influences from around the globe. Among international flavors, the menu offers pico de gallo from Mexico, shichimi from Japan, and duqqa from Egypt—all in a fast, to-go format.
All Avocaderia’s dishes are made from organically-grown fruit from Michoacán. The restaurant is a partnership between avocado-loving chefs Francesco Brachetti, Alberto Gramini, and Alessandro Biggi.
And while some have noted an all-avocado bar in Brooklyn approaches self-parody, this reporter wishes them a fruitful future and hopes the concept makes its way to the West Coast straightaway.
UNITED STATES - As the United Fresh 2017 trade show in Chicago sits around the corner, the industry is abuzz with celebration, and the United Fresh Produce Association has hit the pavement to kick off festivities for the winners of the 2017 Retail Produce Manager Awards. The program pays special recognition to produce managers on the front lines in supermarkets, working everyday to increase sales and consumption of fresh fruits and vegetables.
As we previously reported, Jeff Oberman, Vice President of Trade Relations, United Fresh has traveled throughout North America to meet with the esteemed award winners on their own turf to find out more about what makes them so exceptional.
“We have visited over half of this year’s 2017 Retail Produce Manager winners and their work ethic and merchandising strategies continue to raise the bar of excellence. This year’s winners have showcased merchandising strategies that help drive increased sales and consumption. Highlights include capitalizing on their communities, such as partnerships with local Universities, as well as taking advantage of good weather to promote fruits and vegetables in colorful displays welcoming customers at the entrance to their stores.”
In this installment of our coverage, I spoke to retail leaders about honorees from Big Y Foods, Tops Friendly Markets, and Price Chopper.
First up is Lou Kwisnek from Big Y Foods in Northampton, MA. I asked Kevin Barry, Director of Produce and Floral for Big Y Foods to share his sentiments on Lou and his thoughts on the honor.
“For several years, Lou has been the produce manager in one of the busiest Big Y stores. His commitment to excellence can be seen on a daily basis in his outstanding and creative merchandising throughout his department. He is an outstanding communicator and teacher, and has trained several young associates in the art of running a first class produce department. Taking care of the needs of his customers is his number one priority. Lou was responsible for initially and successfully executing the Big Y partnership with the University of Massachusetts Student Farm in Amherst, MA. We are all excited that Lou has been chosen for this award by the United Fresh Produce Association. We also thank Dole for sponsoring such a prestigious award,” Kevin told me.
Next, I touched base with Jeff Cady, Director of Produce/Floral for Tops Friendly Markets, to ask him about John Dedie, an honoree from Tops Friendly Markets in its Henrietta, NY location, and what makes Dedie such a great team member for the banner.
“John is a very passionate veteran produce manager who is well deserving of this award. John excels at managing all aspects of the produce department, is a fantastic merchandiser and leads his team not just by example, but shares the 'why' behind the 'what,'” Jeff shares. “When asked how a new program is doing, he communicates both the positives and negatives in a professional, constructive manner. I can't leave out the most important quality, customer service. While he may not interact with every customer, the example he sets for his team encompasses the whole dept.”
Lastly, I spoke to Price Chopper’s Richard Reed, VP, Produce & Floral Merchandising, about Patrick Odell’s achievement and what makes this produce manager an asset to the company’s Oneonta, NY store.
“Patrick is an outstanding produce manager who goes above and beyond for customers to help drive fruit and vegetable consumption. We are proud of his achievement, and we congratulate him on receiving the 2017 Retail Produce Manager Award. His drive, ambition, and commitment to sharing knowledge, are truly assets to the Price Chopper team,” Richard told me.
Since the program's inception in 2005, nearly 300 retail produce managers, representing more than 90 different retail banners, have been honored for their contributions to the industry. Now in its third year as title sponsor, Dole’s Bil Goldfield, Director of Corporate Communications, shares that the company is excited to play a part in recognizing these produce managers and their important contributions to our industry.
"These produce managers need to be a farmer, a chef, a marketer, a salesperson at any given time. That takes knowledge, passion and dedication. It's time that they received the recognition and thanks that they deserve," Bil added.
Award winners will be honored by United Fresh and Dole at United Fresh 2017 in Chicago this June 13-15. To see the full list of winners, visit: http://www.unitedfreshshow.org/retail-foodservice-celebration-dinner