AUSTIN, TX - As reports swirl of changes to come to the Whole Foods strategy, investors appear to be pushing for the retailer to cut prices and boost profits.
Many of the changes, Wall Street Journal reports, are being pushed by former Target exec Don Clark, who joined Whole Foods in November of 2015 to run its grocery operations.
While the Journal notes that Clark looks to bring data analytics, centralized purchasing, and strict shelf management to help shave costs and, in effect, bring profit up, it’s a move analysts reportedly are skeptical of as Whole Foods would be limiting hard-to-find items it currently provides in an effort to match prices on a wider array of items.
A Kantar Retail survey noted that nearly a fourth of consumers shopping at Whole Foods over the last month were seeking products not available in other chains, the Wall Street Journal reports, adding that it would be less likely to make this offer if it doesn’t update the product it stocks following this strategy.
Co-Founder and Chief Executive John Mackey told the Wall Street Journal that this new strategy brings balance between the ‘remaining autonomy of regional executives’ and making for an easier process for national brands to pitch products. He said that this streamline will bring lower prices, but that it’s still a specialty store.
“Our culture is still very unique,” Mackey said. “What Whole Foods needs to do is to take the best ideas of the traditional supermarket industry and integrate them into our company.[...] We think there are tremendous savings we can have that we can pass on to our customers with lower prices.”
This is the latest in a string of possible directions as Whole Foods’ future continues to change shape. As we reported recently, shares boosted when activist investor Jana Partners LLC grabbed up a nearly 9 percent stake in the company, piquing interest on whether the chain was further exploring sale options. Whole Foods’ stock spiked yet again when it was revealed that Amazon had explored interest in buying the name last year, but did not go far in pursuing a deal.
This all comes after a series of moves to streamline locations, operations, and even a change in its leadership structure from two CEOs to one.
AndNowUKnow will continue to report as we wait to see the developments of this latest strategy, and what is to come from Whole Foods, and other retailers in the market.
SACRAMENTO, CA - It’s been less than two weeks since Governor Jerry Brown declared the official “end” of California’s drought crisis, and already the state is breaking records for the wettest year ever. According to the National Weather Service office in Sacramento, California’s northern Sierra Mountain range has achieved its wettest water year in recorded history.
Following a survey of eight different weather stations in the mountain range, totals showed the average rain and melted snow level to be 89.7 inches. According to The Washington Post, this passes the previous 34-year record of 88.5 inches set in 1982-1983. What’s even more notable about this record is that California is not even done measuring for this water year. The state will continue totaling its record wetness all the way until September 30.
RECORD BROKEN! Northern Sierra 8-station index now has wettest water year on record at 89.7" surpassing old record of 1982-1983! #cawx pic.twitter.com/USkE6j7ZkP
— NWS Sacramento (@NWSSacramento) April 13, 2017
As you may have noticed from our coverage of storms rolling through California over the past few months, rain and snow have been perpetually been falling in the state since this past October. According to the Post, every single month except November produced above-average amounts. WeatherBell Analytics Meteorologist Ryan Maue even calculated that California has received the equivalent of 90-trillion gallons of water since October, the greatest volume on record, the source reports.
“This drought emergency is over, but the next drought could be around the corner,” said Governor Brown in his statement earlier this month. “Conservation must remain a way of life.”
This news also comes just a few days after the federal government announced that California officials upped its water allocations this year so farmers will receive 100 percent in Central and Southern regions.
As more precipitation is expected in the state throughout the rest of this week and beyond, keep updated with AndNowUKnow as we continue to cover California’s water situation.
IDAHO FALLS, ID - With Viva Fresh 2017 just around the corner, the supply-side of the industry is bringing a host of exciting products to forefront of fresh produce for the 3rd annual event. One of the companies exhibiting at this year’s trade show is Potandon Produce, who is showcasing its impact on the value-added and bulk potato category, as well as the retail spread.
Glen Reynolds, Vice President Business Development, joins me in the lead up to Viva Fresh to share the latest on the company’s offerings and what we can expect from Potandon’s program.
This year, the company is featuring its proprietary Klondike Brand mini potato program.
“Potandon Produce has been involved in new variety seed development for some time and is poised for the future with additional varieties continually being tested,” Glen tells me. “Our Klondike seed is a unique creamy variety with a very high flavor profile. Consumers cooking with our Klondike’s will have a great eating experience. We have year-round availability with very limited gaps in supply.”
This variety has been extremely well-received by consumers, Glen adds, and popularity is in increasing significantly. Right around the corner in just a few short weeks, Potandon will also begin harvesting its new crop, Arizona Klondike’s, to meet retail demand.
Potandon offers retailers and consumers alike, multiple pack sizes to tailor to their needs including 6/24 oz., shelf-stable microwavable packs.
“Currently, we have four flavors of our refrigerated Steamers: Four Cheese, Mesquite Smoked Bacon, Roasted Garlic Butter, and Three Chili Sauce,” Glen shares. “We strive for unique and trendy favors with heavy emphasis on consumer feedback and focus groups.”
To help showcase these items, Potandon is offering a free-standing shipper unit for additional selling space to support the 6/24 oz. product line.
So, what’s next for Potandon? Glen notes that the company is currently working on some unique seed varieties and has plenty of promotional plans available to help drive sales and the ring at the register for retail partners.
And Glen knows retail. His produce career started on the retail-side having been Director of Produce for both Lowes Foods in North Carolina and Seessels Supermarkets in Memphis Tennessee.
“I moved to the supply side with a startup company, Imagination Farms Inc., which created the Disney Garden Brand of fresh produce for kids. When the program was taken in-house by Disney, I found my way into the potato and onion business which I have been involved in for the past eight years,” Glen says.
Glen has now been with Potandon for two-and-a-half years, and is loving every minute of it.
But don’t just take my word for it! Stop by and visit the Potandon team next week at Viva Fresh 2017, booth #708. See you all there!
MCALLEN, TX – Keeping a finger to the pulse of innovation, Fox Packaging™ and Fox Solutions™ have joined together to offer the fresh produce industry a new tool to stay at the forefront of industry issues and trends. The companies have combined to create Fox News, a blog centered around packaging and equipment information.
“To support the needs of growers, shippers, and retailers, we are creating an information hub to find thoughtful insights in the areas of packaging and packing equipment,” said Aaron Fox, President of Fox Solutions. “This is a way to address common topics in our area of the supply chain with relevant, industry-specific content.”
The blog, according to a press release, will provide thought leadership on a range of topics like packaging trends, equipment solutions, food safety, and sustainability. Fox News will also divulge how the companies are facing these issues and trends head-on.
Fox Solutions and Fox Packaging stated that together, the companies are looking to spur the industry forward with innovative solutions, such as through the launch of Fox News.
Visit the new site here!
IRWINDALE, CA – Looking to better showcase the company’s innovative single-serve salad line, Ready Pac Food has introduced new packaging for its elevĀte™ Salads.
“Ready Pac Foods was the first to introduce single serve salads and today is the market share leader for the category we created” said Tristan Simpson, Chief Marketing Officer. “This position has created strong brand equity and trust with consumers, which will undoubtedly help to strengthen and further build the elevĀte brand.”
In a press release, Ready Pac Foods noted that its updated packaging is intended to showcase the company’s organic ingredients in an easy-to-read and visually-impactful way. The new branding effort promises to both freshen the elevĀte brand and reinforce the connection and trust consumers have with the Ready Pac Foods brand.
As part of the line’s new look and feel, elevĀte Salads have been renamed. The new names are intended to accentuate the brand’s dedication to simplicity and organic eating; they include:
- Spinach Salad with Chicken
- Southwest Veggie Salad
- Baby Greens & Ancient Grains Salad
- Spring Mix, Cranberry & Nut Salad
- Sunflower Caesar Salad with Chicken
“The new packaging showcases the product in an eye-catching way with simple messaging emphasizing key product features our consumers are looking for,” said Nannette Richardson, Vice President, Portfolio Marketing. “We know consumers shop by flavor and variety first and foremost, and our research shows the new packaging will highlight these features.”
According to data provided by AcuPoll Research, the company noted that “the descriptors organic and superfoods are the most desired claims by consumers for prepared salads.” In research including Ready Pac Food’s new elevĀte packaging, consumers gave the new packaging an Outstanding Rating (A+) overall, with criteria including purchase probability, uniqueness, and price value.
For more news from the fresh produce industry, check in with us at AndNowUKnow.
PALO ALTO, CA – The electric touch of Tesla is coming to the world of supply chain transportation, as CEO Elon Musk has confirmed reports of an electric tractor-trailer coming soon. Musk estimated that the official reveal would break this September.
In true tech fashion, Musk took to Twitter to break the news. Musk marked this fall for the semi truck’s big date, and stated that the Tesla team had “done an amazing job. Seriously next level.”
Talk of a Tesla shipping vehicle first surfaced last year, according to The Verge, when Musk stated in the company’s Q2 report that Tesla would be pursuing a Tesla Semi. Musk indicated that the unit would be unveiled in the middle of this year, making the reveal to come not too far behind the projection.
News source Wired hailed this coming addition to the Tesla lineup, noting that the infrastructure of a tractor-trailer would make a suitable house for the necessary battery packs. Also, the source speculated, this new semi truck could make for a smaller space-saving motor, which would also allow for tidier packaging and increases in traveling efficiencies, though the range of the vehicle will depend on the battery used.
Tesla Semi truck unveil set for September. Team has done an amazing job. Seriously next level.
— Elon Musk (@elonmusk) April 13, 2017
In the same series of Tweets, Elon confirmed to other Twitter users that the company is also planning to unveil a pick-up truck within the next 18-24 months, and that the next sports car will be a convertible.
What will the Tesla semi truck look like, and how will this tech move impact the industry? Stick with AndNowUKnow for all the latest in breaking news.
WATSONVILLE, CA - As all the wheels that keep our industry turning, from grower/shippers, to retailers, to consumers, continue to raise the sustainability bar, Sambrailo Packaging is looking to take the challenge to the next level with the launch of ReadyCycle™.
With Earth Day coming up later this month, Juana Ramirez, Sambrailo’s Director of Sales and Marketing, took the time to share with me why ReadyCycle, the company’s latest introduction that is 100% recyclable, versatile, and marketable, might just be the next step in the evolution of eco-friendly produce packaging.
“We’ve created game-changers in the past,” Juana tells me, alluding to the company’s 94-year history of packaging innovations, including the introduction of the plastic clamshell in 1987. “As consumers push growers and retailers to be more environmentally aware, we decided that we needed to develop a solution that would achieve the same, or better, packaging functionality without the carbon footprint.”
The footprint for plastic packaging is imaginably quite large. Even though the plastic itself may be recyclable, if it has a paper label applied with regular adhesives the entire package potentially ends up in a landfill. “ReadyCycle is truly 100% recyclable in existing recycle streams,” states Juana.
ReadyCycle is manufactured with food-grade adhesives and printed with water-soluble inks, making it a packaging option which aligns with the ideals and standards of those that produce, sell, or buy organic produce—a continuously high-demand category.
“We want to connect with those concerned about the amount of plastic packaging used for produce items, and we want to partner with retailers and grower/shippers that really want to make an effort to reduce plastic,” Juana shares.
Not only does it tout complete recyclability, but ReadyCycle’s paper-based format makes it completely versatile for use with a wide variety of produce items. Just to name a few:
- Berries
- Tomatoes
- Green beans
- Peppers
- Small squash
- Zucchini
With an extremely condensed development timeline for prototypes compared to thermoformed plastics, pack sizes and weights can be adjusted easily and efficiently. But, there are still other key benefits for users as well, Juana says.
“The surface, inside and out, can be branded,” she explains of the marketability. Quick print turns make it ideal for seasonal messaging and promotions, and the increased marketing real estate allows for recipes and other nutritional information to be printed right on the pack.
Hungry for more? Visit www.readycycle.rocks for more information about ReadyCycle, or stop by the Sambrailo Packaging booth #419 at the West Coast Produce Expo in Palm Springs May 19-21.
AndNowUKnow will keep you up to date on the latest with these and all other produce innovations within the industry.
CALIFORNIA - April showers are bringing May cherries, and as bloom is happening for orchards in Washington State, the coveted cherry season is nearing kick-off in California. In anticipation of the cherry deal, I connected with Brianna Shales, Communications Manager of Stemilt Growers, to discuss what retailers can expect from this year's season, the grower's newest brand, and retail tips for capitalizing on this key summertime fruit.
“We’re two weeks away from the California season, with the earliest fruit expected around May 1st,” Brianna shares. “Production will ramp up quickly from there, and retailers should expect key promotional periods between May 11 through June 3rd, with Memorial Day offering a great opportunity for sales.”
Stemilt, who grows cherries in multiple California regions, will see a heavy emphasis on cherries out of the Patterson/Tracy area north of Kern County, with unique new varieties coming into production. Brianna tells me that, as a whole, customers can expect to see good volumes out of California this season, barring any weather interruptions.
“You will see lots of Corals and Royal varieties from Stemilt. These varieties ripen early and have turned the historic Patterson growing district into one that is booming. Both are very high-quality, size nicely, and look great on the tree this year,” Brianna tells me. “Retailers can anticipate a long cherry season with Stemilt, starting in May in California, before moving to Washington in June, and wrapping up with our high-altitude orchards in late August.”
As an impulse item with a short season of four months, cherries offer retailers the opportunity for ample promotion. Because of this, the demand tends to swing upward year-after-year. Brianna tells me that, with the excellent quality expected out of California, there are good retail dollars to be made on cherries, and plenty of chances to delight customers. Brianna adds that retailers looking to boost the ring at the register should focus on cherries as an impulse item, and keep bringing consumers back with an emphasis on high-quality fruit.
In addition, towards the later half of the California deal, Stemilt will be packing cherries from the Delta region of the state, which provided inspiration for the company’s 5 River Islands Cherries brand.
“This new brand offers large sizes and great qualities, and gives retailers the opportunity to tie the product back to the location the fruit comes from,” Brianna adds. “The Delta is an agricultural gem and has a special story to make a great finale at retail for California cherries, before production shifts to Washington State.”
In addition to Corals and Royals, Rainiers are part of the California cherry deal. Brianna tells me that the key promotion timing for Rainiers will be May 8th through June 1st, starting in the southern part of the state, shifting in the next two weeks to all regions, and then moving north as the state wraps up.
When I ask Brianna what her number one tip would be for retailers this cherry season, she smiles and tells me, “Make sure you don’t treat any one cherry season the same! This year's California crop will be up in volume over last year, so it’s important to refresh plans and stay on top of the crop. Cherry season is always evolving.”
How will the season progress? Stay tuned with AndNowUKnow as we follow along.
WEST DES MOINES, IA – In an effort to reprioritize, last week, Hy-Vee announced that it would restructure several corporate departments and focus more resources on three key areas—IT, HealthMarkets, and restaurant development.
In upcoming weeks, a company press release noted, the company plans to add nearly 70 new positions to its corporate staff—including 50 new full-time IT positions at the company’s new facility in Grimes. The company noted that its new facility is intended to serve as a creativity center where those in IT and marketing will work together to develop future apps, programs and online content that will provide customers with more convenience and customer service, and showcase the company’s culinary expertise.
The remaining 20 positions will be added at the company’s Des Moines corporate office, where they will work to oversee future development and the expansion of the company’s Hy-Vee Market Grille restaurants and HealthMarkets, which provide organic, natural, gluten- and allergen-free foods. The company operates 103 Market Grille restaurants and 179 HealthMarkets across eight states.
Hy-Vee’s restructuring efforts are expected to impact approximately 60 existing corporate positions, with more than 50 of those affected being offered job reassignments within the company—including opportunities at the store level or the new positions being created.
"At this time, the majority of the people whose positions are impacted will be reassigned to other positions within the company, including opportunities at retail," Tara Deering-Hansen, Group Vice President, Communications, told the Des Moines Register. "As we continue to evolve our services and product offerings, we will grow other areas within the company. Unfortunately, this means that other administrative departments within our company will no longer require as much staff as they once did."
For updates on the company’s restructuring efforts, stay tuned to AndNowUKnow.
BAKERSFIELD, CA - With April 22nd’s Earth Day on the horizon, the produce industry has sustainability on the brain. And in that vein, Sun World International is honoring the sentiment of the holiday by unveiling its new brand promise: Better Farms. Better Flavor. The new brand promise comes following extensive consumer focus groups, shop-alongs, and survey research to determine target grape consumers’ purchase influences.
“The Better Farms. Better Flavor. promise communicates our ability and desire to deliver what consumers told us they seek most: consistently delicious grapes grown with care for the Earth and the hardworking people that make that flavor experience possible,” CEO Merrill Dibble said. “As an organization, every decision we make will be made to keep this promise to our consumers, customers, partners, and our people.”
Sun World plans to spread its brand promise through a series of events throughout the year including:
- Rolling out the newly branded Sun-World.com
- New packaging designs
- A Family Farm Earth Day Celebration for employees and families
- The formal launch of the Sun World Sustainability Program & Annual Report
While the company has long been implementing sustainable practices, including solar-powered vineyards, water reclamation, bee forages, and farm worker safety and empowerment programs, the new sustainability program will now benchmark and set target goals, according to a press release.
“The Better Farms. Better Flavor. promise will be a common thread throughout all of our global brand building efforts,” added Marketing Manager Natalie Erlendson. “When our customers carry Sun World grapes, they can have confidence that they are delivering to shoppers the best in premium quality grapes, backed by a consumer centric brand position that will create loyalty and repeat sales.”
Want to read more about Sun World’s new brand promise? Check out www.Sun-World.com for all the details.