ROSEMONT, IL - One of the largest foodservice distributors in the nation, US Foods, shared results for the Q1 of its 2017 fiscal year. The company highlighted growth across a range of categories and credited it to a targeted and disciplined approach to business.
“Our business delivered solid results in the first quarter of fiscal 2017,” said President and CEO Pietro Satriano, in a press release. “Solid volume growth with our targeted customer types helped us deliver Net sales growth of 3.5%, and our disciplined focus on improving profitability led to Adjusted EBITDA growth of over 6% against a strong fiscal 2016 first quarter.”
Highlights of the report include:
- Total case volume increased 4.3%; independent restaurant case volume increased 4.0%.
- Net sales increased 3.5% to $5.8 billion.
- Gross profit of $991 million increased 3.2%.
- Operating income of $77 million decreased $8 million.
- Net income of $27 million increased $14 million.
- Adjusted EBITDA increased 6.1% to $215 million.
- Diluted EPS of $0.12; Adjusted Diluted EPS of $0.18.
“Our M&A pipeline remains active, and the two new acquisitions closed in the first quarter provide opportunities to increase our independent restaurant share and center of the plate capabilities in protein,” added Satriano. “We are confident that the continued execution of our strategy will drive solid results as the year progresses.”
The company noted no changes in its outlook for fiscal 2017.
For more on this and other important companies in the produce industry, stay tuned to AndNowUKnow.
ORLANDO, FL – The National Mango Board (NMB) is raising its profile with a new superstar spokesperson; Ayesha Curry, star of the Food Network’s show “Ayesha’s Home Kitchen” and author of The New York Times bestselling cookbook “The Seasoned Life,” will join the board in its campaign to promote mango consumption.
According to a NMB press release, the celebrity supermom and the board recently partnered in New York City for a media day to meet with several national media outlets and ultimately reach consumers with mango messaging and Ayesha’s mango story.
“I grew up eating mangos so I love that I can always get my hands on them year-round. Jerk chicken is a family-favorite recipe, and adding the sweet flavor of mango gives it a delicious twist,” said Ayesha, who grew up enjoying mangos from a tree in her Jamaican grandmother’s backyard.
Now a spokesperson for several health causes and a culinary celebrity, Ayesha brings her love of mangos to a variety of activities; whether entertaining on gameday or cooking for her little ones, Ayesha has a ton of unique ideas on incorporating the fruit to add flavor and texture to a variety of dishes.
“Ayesha’s culinary enthusiasm and genuine love for mangos make her a perfect fit for joining forces with the NMB,” said Valda Coryat, Director of Marketing. “She exudes great energy and brings a fun and innovative twist to home cooking that can inspire more consumers across the U.S. to experiment with fresh mangos in their homes.”
During the media day, Ayesha conducted interviews with popular food, lifestyle and entertainment outlets, sharing some of her favorite mango recipes like Mango Crab Avocado Salad, Jerk Rubbed Chicken Skewers with Mango Salsa, Honey Shrimp and Mango Stir-Fry, and Mango Lemonade.
In addition to usage ideas, Ayesha also shared insights on mango nutrition, selection, and varieties, while demonstrating easy steps on how to cut a mango to various media platforms including day-time television, web, and social media outlets in the U.S.
The NMB encourages readers to tune into the Rachael Ray Show, on May 12, 2017, where Ayesha will talk about her love of mangos and their versatility and flavor.
For more on all things produce, stay tuned to AndNowUKnow.
PULLACH, GERMANY - As one of the leading reusable packaging solutions for fresh foods, IFCO is furthering its impact around the globe. Today the company released estimates quantifying the positive impact the company has had on the environment since its founding in 1992.
“Our customers’ use of IFCO’s shared and reusable assets has been driving supply chains toward a global circular economy and advancing ‘zero-waste’ goals for 25 years,’” said Wolfgang Orgeldinger, CEO. “We are proud to work with our retailer and grower partners to improve the sustainability of the fresh food supply chain, and to nourish and improve the lives of people around the world.”
According to a recently published life cycle analysis and previous damage rate studies, over the past 25 years IFCO has:
- Eliminated 3.4 billion kg of CO2 emissions, the equivalent of removing nearly 500,000 cars from the roads
- Prevented more than 951,000 metric tonnes of solid waste, enough to fill approximately 104,000 dump trucks
- Reduced water consumption by 43 billion litres (11 billion gallons);
- Saved 317,982 metric tonnes of produce from damage and waste.
“If all points along the fresh food value chain come together to consistently operate in the most sustainable way possible, future generations will thank us for passing onto them a better world than the one we inherited,” concluded Mr. Orgeldinger.
IFCO is celebrating the 25th anniversary of the company’s founding in 2017 with a series of announcements, events, and a donation of 25,000 € (approximately $27210 USD) to food banks across Europe and North America.
Since joining the Brambles family of companies in 2011, IFCO has continued to span the globe. Today, with a pool of more than 270 million containers, more than 1.4 billion shipments of fresh goods arrive at grocery stores around the world in IFCO reusable plastic containers every year. In September, IFCO announced it delivered fiscal year 2016 annual revenue of US $992 million, representing 16 percent growth over the prior year at existing currency.
For all the latest in fresh produce supply chain impact and innovations, follow along with AndNowUKnow.
Update: As of 12:15, 5/9/17, according to source IndyStar, the retailer has confirmed that all 44 remaining stores share this fate if a buyer cannot be found. The sixteen locations in the WARN notice were called out because they have 50 or more employees each.
INDIANAPOLIS, IN - As Marsh Supermarkets hangs in limbo searching for a potential buyer, as many as 16 additional stores throughout Indiana are in jeopardy of closing. If all 16 stores close, 1,464 associates and 885 full-time equivalents would be terminated, according to local news source RTV6.
According to a WARN notice dated May 8 from Marsh Vice President of Legal Affairs Ben Habegger to Carmel Mayor James Brainard: "We deeply regret and understand the uncertainty this action will cause our valued employees and the community," Habegger wrote.
According to the source, the 16 locations are all over central Indiana. The locations at risk of closure are:
- 1825 Kinser Pike, Bloomington
- 843 E. Main St., Brownsburg
- 2140 E. 116th St., Carmel
- 2904 S. State Road 135, Greenwood
- 15151 E. 82nd St., Indianapolis
- 1435 W. 86th St., Indianapolis
- 227 W. Michigan St., Indianapolis
- 6965 W. 38th St., Indianapolis
- 2350 Broad Ripple, Indianapolis
- 320 N. New Jersey St., Indianapolis
- 208 Southway Blvd. E., Kokomo
- 1013 Forest Ave., Marion
- 1500 W. McGalliard, Muncie
- 715 S. Tillotson, Muncie
- 10679 N. Michigan Road, Zionsville
- 5 Boon Village, Zionsville
As we previously reported, the company had stopped paying rent on as many as six locations throughout Indianapolis in March, and at least two ownership groups have sued Marsh over nonpayment of rent. So far, more than 20 central Indiana Marsh stores have closed in 2017.
The Indiana-based business supermarket chain was founded in 1931, and was acquired by Florida-based Sun Capital Partners in 2006. The company had 120 locations as of the time of the acquisition—but has shrunk steadily to 67 stores.
Will a buyer swoop in to help save this chain? Stay tuned to AndNowUKnow as we continue to report.
ECUADOR – The world’s streets are just a bit safer from the perils of a half ton of drugs, thanks to authorities in Ecuador and a plucky bunch of bananas. Officials uncovered a shipment of cocaine hidden in the fruit over the weekend, that was originally intended for the shores of Belgium.
The seizure took place at the Port of Machala in Ecuador’s El Oro province, according to news source Prensa Latina. During a physical control and inspection, the true contents of a cargo of banana boxes were revealed. This recovery then led to another, named Operation Freedom.
Together with the Colombian police, officials in the Santa Elena province successfully carried out a raid that seized 250 bricks of cocaine, one vehicle, two outboard motors, and 23 detainees. Freeing any other bananas from potential abuse.
Deputy Minister of Homeland Security Diego Fuentes stated on his Twitter account that the initial detainee was being held at the Ports and Airports Information Unit and the Regional Center for Canine Training.
The news source stated that the illegal trespassers of the bananas may also have been bound for the United States as well.
This isn't the first time German-bound Ecuadorian bananas have been vessels for cocaine. As we reported last month, 384 kilograms of the drug were found hidden within 26 cases of bananas that originated from Ecuador.
Will authorities and fresh fruit and vegetables continue to prevail over the nefarious intentions of the criminal underworld? AndNowUKnow will report.
MORGAN HILL, CA - Sakata’s Hulk pumpkin variety—I think it’s easy to say that the name of this pumpkin speaks for itself. But I wouldn’t be a writer if I left it at just that. Taking R&D to the next level this year, Sakata is looking to meet industry expectations for quality seed, strong performance, and excellent yields, as well as retail and consumer demand for delicious fresh produce options. And one of the ways this company is achieving their standard of excellence is with the advantages and benefits of the Hulk pumpkin.
Dennis Thome, Area Sales Manager says there is so much to love about this latest addition from Sakata, and with a team dedicated to bringing the most popular traits of a pumpkin into one variety, the recognition and client appreciation for the Hulk is on the rise
“Hulk is the ideal pumpkin: extra-large size, dark orange color, with a large dark and embedded handle that matches the pumpkin size,” Dennis shares with me. “In addition, it yields consistently large fruit in the 30 lbs. range with medium-early maturity. Plus, it has shown wide adaptability in both the northern and southern pumpkin growing regions.”
The large barrel-shaped pumpkin is high in productivity as well, and offers incredibly uniform fruit with the ability to set several large fruits per plant. Sakata prides itself on listening to the needs and challenges or the industry and the Hulk is its ways of addressing these demands.
With research facilities that include stations in Salinas, California; Yuma, Arizona; and Fort Myers, Florida, that focus on vegetable breeding and trialing for the convenience of their customers, there is never a new variety too far down the pipeline.
Stay tuned for more of the latest and greatest from the team behind the Sakata standard.
CALIFORNIA – The world-renowned plant breeding program at UC Davis is making its way into headlines for different reasons than usual; a suit filed against two of its former scientists, with the researchers filing a $45 million lawsuit of their own. At the center of the case are intellectual rights over a highly valuable collection of varieties.
Plant scientist Douglas Shaw and his partner Kirk Lawson developed 24 new strawberry varieties while working as part of the UC Davis breeding program for over 25 years. According to SF Gate, Shaw headed the world famous program for more than two decades, alongside his biologist partner, Lawson. Varieties created included those that were pest- and disease-resistant, more durable, drought resistant, capable of growing fruit in spring and fall, and succulent fruits with higher production.
The Sacramento Bee reported that the case is centered around a particular collection of plants that an official called “the crown jewels of the breeding program.” Shaw and Larson stated that they developed the plants and have been trying to gain control of them for almost five years, since giving notice they were leaving the program.
The partners retired from UC Davis in 2014, as they stated the school was winding down the program, and their work was no longer appreciated, according to the Sacramento Bee. Shaw and Lawson then launched their own company, California Berry Cultivars based in Watsonville, California, that looked to develop new strawberry varieties.
UC Davis is now accusing the researchers of taking some of their work with them when they left, citing patent infringement and violation of a signed oath to not enrich themselves by continuing research using descendants of plants developed at the university.
The scientists have rebutted with a $45 million lawsuit of their own, accusing the University of locking up the plants and destroying hundreds of others to keep a better strawberry from the market. Shaw and Lawson’s legal council has also stated that UC Davis hasn’t released a new variety of strawberry for commercial use since the scientists left. UC Davis has countered, and stated that is program is in full swing with new varieties in the pipeline.
U.S. District Judge Vince Chhabria, according to the Sacramento Bee, stated in a pretrial ruling that UC Davis has the right to hold onto the physical plants, but not the intellectual property. Lawson and Shaw proposed that it is nearly impossible for them to develop new varieties without physical possession of the plants.
The trial will begin on May 15 in San Francisco, California. ABC7 reported that some in the industry are concerned that this lawsuit will slow research into new varieties.
How will this issue resolve, and what kind of effect will it bear for the strawberry segment? AndNowUKnow will report.
SACRAMENTO, CA - When it came to bell pepper knowledge last Friday, so many industry members brought the heat. It was a tight race to the finish, with top marks going to competitors like Jewel Osco’s Michael Vesely, 4Earth Farms’ Mark Munger, and Oppy’s Karin Gardner.
As we know by now, though, there can only be one overall title holder, and it’s not just knowledge, but speed. This round’s Quiz Quix crown went to NatureFresh™ Farms newcomer Paul Schockman of the company’s sales team.
When I asked Paul what he had to say on the win, his comment was short and sweet–literally. “Save a chocolate bar, eat a bell pepper,” said the newest addition to our Quiz Quix Hall.
See who made the top of the ranks in the leaderboard list below:
If you got stumped, you likely weren’t alone! The most missed question for our quizzers was:
Most Missed Question:
True or false, Christopher Columbus influenced the naming of bell peppers?
Answer:
True
If you didn’t get a chance to try your skills, you can challenge yourself and set your scores up against the best here. You are already armed with the most challenging answer, after all.
And to compete in Quiz Quix events to come, just sign in either via email or one of several social media accounts, and you’ll be all ready to jump into the competition for $100 cash!
Quiz Quix is our way of encouraging some healthy, fun, informative competition within the industry. Signing in will give us a token to verify you and allows us to put your name in the ranking. It doesn't give us access to more than your name and email address.
Catch you on the next round!
HOUSTON, TX – Sysco Corporation has announced its third quarter financial results. After surprising analysts with positive earnings for the last five quarters and completing the acquisition of the Brakes Group last year, the company met estimates and grew revenues.
“I am very pleased with our third quarter performance,” said Bill DeLaney, Sysco’s Chief Executive Officer, in a company release. “We saw solid operating income growth, driven by strong local case growth and effective expense management. We are making continued progress on our strategic multi-year initiatives, which provide a platform for ongoing value creation for our customers, associates, and shareholders. Going forward, we remain focused on growing our business in a disciplined, profitable manner and are confident in our ability to achieve our three-year plan financial objectives.”
Highlights of the report include:
- Sales increased 12.7% to $13.5 billion; excluding Brakes, sales increased 2.3% to $12.3 billion
- Gross profit increased 18.3% to $2.5 billion; gross margin increased 89 basis points to 18.74%; excluding Brakes, gross profit increased 4.3% to $2.2 billion and gross margin increased 34 basis points to 18.20%
- Operating income increased 15.5% to $436 million; adjusted operating income increased 14.3% to $500 million; excluding Brakes, adjusted operating income increased 13.6% to $497 million
- Earnings Per Share (EPS) increased $0.06 to $0.44; adjusted EPS increased $0.05 to $0.51; excluding Brakes, adjusted EPS increased $0.04 to $0.50
- The company saw growth in both its domestic and international foodservice operations during the period. Sales from U.S. foodservice operations reached $9.2 billion (up 2.2% from last year), and international sales totaled $2.5 billion—up significantly from $1.3 billion a year prior. Gross profit increased 4.0% to 1.8 billion for U.S. operations, and gross margin increased 35 basis points to 19.89%.
U.S. foodservice operations also involved the following:
- Operating expenses increased $25 million, or 2.2%, compared to the same period last year
- Adjusted operating expenses increased $26 million, or 2.3%, compared to the same period last year
- Operating income was $689 million, an increase of $46 million, or 7.1%, compared to the same period last year
- Adjusted operating income was $689 million, an increase of $45 million, or 7.0%, compared to the same period last year
The company noted that these changes were in large part the result improved business performance, improved working capital, and favorable year-over-year comparisons due to the US Foods termination payment last year, offset by higher cash taxes from deductions related to the US Foods settlement and a deferral from flood relief.
TORONTO, ON - As the weather heats up, there is inspiration abound for ways to pump up fresh summer citrus sales. The Sunkist crew will be bringing their newfound marketing inspiration all the way to Toronto this week, ready to warm up the 2017 Canadian Produce Marketing Association Convention and Trade Show.
“Now is the perfect time to plan for summer citrus promotions at retail,” shared Director of Retail Marketing Julie DeWolf. “Sunkist offers a variety of marketing tools for retailers to build custom programs that generate demand and sales throughout the store. Display bins, which provide additional shelf and promotional space, have proven to be a highly effective tool for retailers to merchandise citrus. In addition, summer sampling programs featuring freshly squeezed lemonade or salads with homemade ‘citronette’ dressings can also help keep consumers in the citrus category all summer long.”
Robust new point-of-sale display bin offerings will be one highlight found at Sunkist’s booth in Toronto. According to a press release, these print-on-demand bins offer powerful marketing advantages for retailers, highlighting Sunkist citrus and educating consumers about varietal characteristics, flavor profiles, and nutritional information. As an added bonus, the bins offer on-trend usage and recipe ideas to drive sales, and can usually ship within just one week of ordering.
“Consumer demand for fresh beverages offers fantastic merchandising opportunities for retailers to leverage in store,” continued Director of Communications Joan Wickham. “Driven by millennial health and wellness trends, consumers are seeking freshly squeezed juices in the produce and deli sections and also juicing at home throughout the day—from energizing juices in the morning, meal replacement smoothies at lunch, and refreshing cocktails in the evening. Sunkist offers fresh beverage recipes, juicing tips, and even garnish techniques to help retailers capitalize on this trend to drive citrus sales.”
Want to see what the buzz is about for yourself? The Sunkist booth will provide trade show attendees with samples of freshly squeezed California Star Ruby grapefruit juice, Valencia orange juice, and water infused with fresh lemons and Meyer lemons—highlighting the unique taste of Meyer lemons. Always a delight, Chef Jill Davie will also be cooking up Sunkist Flatiron Steak with Citrus Spiked Butter Beans and a Sunkist Grapefruit, Avocado, Bacon, and Shrimp Salad with Little Gem Leaves. Yum!
Check out Sunkist’s booth #920, for an in-depth look at everything this company has to offer.