LOS ANGELES, CA - ProducePay is looking to bring a revolutionary idea to produce, and it now has the resources to do so.
Founder and CEO Pablo Borquez tells me that his team has successfully raised $77 million in debt and equity, a huge achievement for the company that only just celebrated its first birthday.
As we reported when it first made its debut, ProducePay brings a new concept to the table in an effort to alleviate financial stress for both sides of the produce industry: A service specifically focused on fulfilling growers’ financial needs while produce is in transit based on the monetary value. The grower has his/her security next day without putting pressure on the shipper.
This latest milestone, Pablo tells me, is a big step in achieving that goal.
“First stage is to become the best we can be in the industry. This achieved capital is a huge step in reaching that,” he shares with me. “Now the sky is the limit, we can approach any produce company in the U.S. and beyond–domestic or international.”
With his sights now set on growing his company 2-, even 3-fold in the next year or so, I ask Pablo what it is he feels gives his company a leg up on partnering with investors.
“The growing life is sometimes hard for investors to understand, but we can help them to do so. We’re created with the mentality of industry-focused first, and finance comes in as a close second. I grew up in this industry, and I can’t forget to be a farmer first. It’s very seasonal and based on so many things that you need to be able to address in real-time. We help partners to understand the food industry and the time sensitivity,” he shares.
It’s the son of a farmer, he says, that goes to potential partners in the industry and beyond. That approach–speaking from an inside perspective while bringing finance to the forefront–is what Pablo feels has lent such a speedy success to ProducePay since its debut in December of 2015.
“This is one of the few industries so exposed to outside factors, making farmers a unique kind of people,” Pablo continues. “It takes a certain character to be able to take on that level of risky, but necessary, job. Their financial partner should understand that, and we do.”
And with this latest $77 million milestone achieved, ProducePay has the resources to do just that. “We are looking for bigger partnerships as we look to help take everyone to market,” Pablo says. “If we want to be the best we can be, we need to be able to reach everybody.”
So produce partners get ready, ProducePay is open for business.
JAPAN - At the ANUK office, we have all been eagerly awaiting the upcoming cherry season. So when this mouthwatering new offering from Starbucks came across our desks, you can imagine there was a bit of Friday morning pandemonium. Behold, the misleadingly titled American Cherry Pie Frappuccino. Despite the local name, this delightful produce-packed beverage can currently only be found at Starbucks Japan locations.
Essentially a cherry pie in a cup, American Cherry Pie Frappuccinos feature a thick dollop of real cherry compote, then a layer of the classic vanilla Frappuccino with bite-sized bits of pie intermixed, and then one more decadent layer of cherry compote and whipped cream.
But the real kicker is what sits atop of the drink—a domed pie-crust topping that needs to be pierced by a straw, essentially recreating the experience of digging into a pie with a fork, as explained by my favorite Asian pop culture news site, RocketNews24. What you get here, the source reports is that delicious bittersweet flavor of American-grown cherries fruit in every bite.
This American Cherry Pie Frappuccino will be available in Japan from April 13 to May 16, at a price of 640 yen, or about $5.80. How can we get this fruit-focused beverage to cross the Pacific Ocean? If you find out, let me know!
LOS ALAMITOS, CA – Spring is everywhere, and consumers are looking to produce to enliven their dishes and seasonal affairs. With winter fading behind us and new springtime merchandising unfolding, Frieda’s Specialty Produce is looking to attract shoppers with its bountiful and colorful displays of fruits and vegetables.
“The change of season brings the change in what shoppers want to cook and eat. Warm weather means light, crisp, refreshing food—maybe even grilled,” said Karen Caplan, President and CEO. “Spring also provides great opportunities for retailers to promote key drivers starting with fresh horseradish root for Passover, artichokes and colored cauliflower for Easter, and rhubarb and berries with value-added specialties like ready-to-eat French style crêpes for Mother’s Day.”
The company emphasized in a press release that retailers can increase sales and attract more consumers to the produce aisle with Instagram-perfect spring vegetables such as the following:
- Purple asparagus
- Watermelon radishes
- Heirloom cherry tomatoes
- Specialty radishes
- Fennel
Even further, sales can be found in the assets of other spring top-sellers and consumer faovrites, such as Brussels sprouts, baby carrots, baby beets, endive, mini sweet peppers, radicchio, Shanghai bok choy, fava beans, sugar snap peas, and English peas.
Looking to spruce up your spring aisles with specialty? Contact Frieda’s today.
BENTONVILLE, AR - Walmart is streamlining its technology division in the United States, eliminating roughly 300 jobs in the company’s Information Systems Division (ISD) in an effort to maximize efficiencies and cut costs.
Insiders told news source Talk Business & Politics (TBP) that the retailer is planning to lay off ten percent of its ISD workforce in the next few days—beginning in Bentonville this week and continuing throughout the month.
“As we said in January, to fuel our growth and our investments we have to manage our costs and our capital decisions with discipline,” Randy Hargrove, Walmart’s Senior Director, National Media Relations, told TBP. “This means we will continue to find ways to operate more efficiently and effectively, true to our cost-conscious heritage…In some areas, we’ll invest in new positions but in other cases, we’ll operate more efficiently and work to change our processes and become more digital to change the work itself.”
These job cuts are part of an ongoing effort to restructure the division. In January, Walmart U.S.’s E-commerce CEO Marc Lore announced a restructuring plan that would impact 200 Information Systems jobs.
“To deliver the changes we ultimately want customers to see on the outside, we have to change on the inside," said Walmart CEO Doug McMillon, earlier this year, in reference to streamlining jobs. "We need more speed and less bureaucracy. We need lower costs.”
While streamlining corporate costs, the company has doubled down on its retail presence, adding distribution centers, stores in new markets, and thousands of employees to its retail operations.
These cuts also come on the heels of a concerted effort to prioritize e-commerce. The company has made waves over the past year, acquiring several online banners and increasing operational efficiencies throughout its online operations.
AndNowUKnow will continue to report on the retailer’s efforts to streamline.
BOISE, ID – There’s more to instilling a timeless program than just consumer interest and a well thought out campaign. As J.R. Simplot has recently shown with its latest investments, the company is pinpointing new varieties with reduced bruising, chemicals, and pesticides as the latest answer to its success.
The new varieties will fall under the White Russet™ brand. As Director of Marketing and Communications Doug Cole recently shared with me, the new varieties will debut this summer in limited quantities with future expansions in the works.
“Late blight disease is the top disease in the World, and farmers have been consistently asking for a solution that provides increased protection with less fungicides,” Doug shares. “As farmers ourselves, we sought to produce a more sustainable potato, and have delivered with the second generation of Innate potato-only breeding technology which is available in the White Russet™.”
The White Russet™ Burbank and Ranger Russet varieties also answer a need for farmers to have a more storable potato, that can withstand colder temperatures in order to withstand rot and sprouting. The potatoes will be grown primarily in Idaho and Wisconsin.
“The White Russet™ are the most sustainable potatoes of their kind and a healthy option for consumers because they have about half as much bruise as conventional potatoes, and also contain 90 percent less of the chemical acrylamide when cooked,” Doug adds. “For retailers who want to reduce millions of pounds of potato waste from their supply chain, White Russet™ is a viable solution.”
With limited initial supplies of the varieties as they kick off this summer, the company will have more to add in the coming season as more seed is grown, J.R. Simplot has already received a deluge of positive response for the offerings. Retailers are buzzing with the new opportunity to find non-bruised potatoes in the late season from May to August.
“Our customers started out by giving us a trial for the new varieties, and then kept us on their shelves. We have grown to 4,000 retail outlets across 40 states, and the response has been significant,” Doug finishes.
What innovative means to answer buy-side demand with J.R. Simplot evoke next? AndNowUKnow will have all the latest in new fresh produce varieties.
NORTHERN CA - This year is bringing out a whole new side to California. While April showers might be expected, a strong storm is rolling in with more in store for the northern region than a few water drops.
The weather pattern is coming through with heavy rain, snow, and strong winds, according to AccuWeather, which will impact part of the Interstate 5 corridor.
"Winds can top 60 mph along the coasts, over the ridges and through the passes," according to AccuWeather Senior Meteorologist Brett Anderson. The report cautions that impacts could approach some of the biggest storms of this past winter in terms of potential flooding and damaging winds.
Major rivers and reservoirs will experience another surge of water, with alerts for wind zeroed-in from southwestern Oregon to Central California.
Those in affected regions can expect:
- An average 3-6 inches of rainfall along the west-facing slopes of the Coast Ranges, the Olympics, and the lower elevations of the Cascades and Sierra Nevada
- Locally higher amounts topping 8 inches in those areas
- 1-2 inches of rainfall over the Sacramento and upper San Joaquin valleys of California
- 1-3 feet of snow in high country of the Sierra Nevada and Cascades
Delays should be expected for motorists in San Francisco and Sacramento, California, through Friday, while Donner Pass along I-80 in California will make for wintry and slippery travel conditions. The pass could be subject to closure for a time.
As for Southern California, there is a chance for enough rainfall that the Los Angeles and San Diego areas could see slick conditions late Friday to early Saturday.
AndNowUKnow will update with further reports that could influence the industry.
READING, PA - Redner’s Markets has announced this week that its Founder Earl W. Redner has passed away at 91 years of age. Known for his warm approach to employees and his fast adoption of retail trends, Earl “The Chief” Redner will be greatly missed by the industry.
"My father was a role model for not only myself and our family, but also the food industry," the company’s current President and CEO Richard Redner said in a statement. "He lived a long, successful life and made a tremendous difference in the community. I'm thankful he was able to see his dream and company become more successful than he ever imagined. His spirit and enthusiasm remained high, and he continued to attend board meetings, visit stores, and would enjoy speaking with our employee-owners often."
As the company explains on its website, Earl began his career in food at just 15 years of age, when he joined the Grand Union Tea Co. in Middletown, NY, in 1940 as a potato bagger and furnace stoker. Earl’s next 29 years of life were spent in various positions at Grand Union, including Assistant Store Manager, District Sales Manager, Division Grocery Sales Manager, and Superintendent of stores in Washington, DC. He was the youngest Grand Union employee ever to hold the titles of Manager, District Manager, and Store Superintendent, the company added.
But 1970 brought the winds of change to Earl, who gathered up enough stock and pension money with his wife Mary to buy two small supermarkets near Reading, PA. After a successful start, the couple reportedly decided to expand, in part because their sons, Richard and Gary, wanted a career in the food business, but also to provide more career opportunities for their employees.
The Redners doubled down on this goal in 1975, forming an Employee Stock Ownership Plan. The Morning Call explained that this plan ensured that any employee who was more than a year into their service and working over 20 hours a week would receive company stock. This move made Redner's the first employee-owned grocer in Pennsylvania.
While the first nine years of operation, Redner’s went under the IGA Food Stores name, 1979 brought the official name change to Redner's Markets. In March 1987, Earl once again moved to stay on the cutting-edge, deciding to change formats and open its first Warehouse Market.
Redner retired in October 1990, with his sons, Richard and Gary, assuming management of the company. Richard Redner continues to lead Redner’s to this day, while his son, Ryan Redner, is Chief Operating Officer. Redner’s currently operates 44 warehouse markets and 21 Quick Shoppes throughout eastern Pennsylvania, Maryland, and Delaware.
AndNowUKnow would like to extend our condolences to those affected by Earl’s passing.
FALLS CHURCH, VA - The U.S. Apple Association’s “Apple Madness” consumer competition has declared the Envy™ apple America’s favorite. Of 32 apple varieties vying for top honors throughout March, a final four was selected with Envy winning out over its competitors.
“We love the opportunity to merge March’s National Nutrition Month and bracket fever with this campaign,” said Korenna Wilson, U.S. Apple Association’s Director of Consumer Health. “It was fun to see apple fans’ passion for their favorite varieties play out on social media. Congrats to Envy!”
The competition began February 22 and lasted for five week-long rounds, according to a press release.
“Envy is selling extremely well in the U.S. but also other key markets for us such as Thailand, China and Vietnam,” noted Joe Barsi, T&G Global’s North American President. “We’re intending to increase global production significantly over the next eight years to keep up with the growing demand for this premium apple, but being chosen as the number one apple in the USA is truly awesome for the consumers who get to enjoy it and our passionate growers.”
Envy was developed by Plant and Food Research in New Zealand by crossing Braeburn with Royal Gala apples using natural plant-breeding methods. The variety was first planted in Washington state in 2009 in a joint venture between T&G Global, which owns the Envy trademark, and its marketing partner Oppy.
Oppy’s Vice President of Categories David Nelley noted that winning the Apple Madness competition puts an exclamation point on what has been another high-demand season for Washington-grown Envy.
“We are incredibly excited that consumers picked Envy over several worthy opponents, bestowing the coveted number one spot and proving Envy’s truly exceptional widespread appeal,” said Nelley.
In 2014, Envy apples surpassed 100,000 cartons for production in the USA, and T&G anticipates a harvest of more than two million cartons by the year 2020.
T&G Executive General Manager, Pipfruit, Darren Drury added that the season for U.S-grown Envy has now ended, but North Americans can look forward to New Zealand-grown fruit currently being harvested for export and domestic consumption.
For more on this and other exciting produce offerings, stay tuned to AndNowUKnow.
WENATCHEE, WA – One of the top branded apples on the U.S. market, Jazz™, has been growing steadily, climbing to become the 10th best-selling variety overall in the nation’s supermarkets. And a key part of this retail performance is driven by surging sales in the months of April and May.
“The scan data documents that the eight-week period from early April to late May are among the strongest of the entire domestic season,” said Steve Lutz, Senior Strategist, in a company press release. “With supplies of many branded apples dwindling, this is the time when savvy merchandisers energize their apple category with Jazz.”
According to Lutz, April and May are two of the strongest sales months of the season for U.S.-grown Jazz apples, and he notes that the apple’s success during these months is likely a result of the quality characteristics of Jazz as well as fewer competitive apples on supermarket shelves during this period.
“Jazz is a crisp, flavorful apple that stands up well in storage as well as on retail shelves once the weather warms in the spring. Repeat purchases are driven by a quality eating experience and we know Jazz consistently delivers for consumers,” added Lutz.
Lutz noted that Nielsen scan data from the last two years shows that retail distribution of Jazz began to decline at the exact time sales jumped.
“In spring months, retailers begin to consolidate their apple offering,” Lutz said. “Unfortunately, some retailers unknowingly back off on Jazz at a time when sales actually accelerate. Over the past two seasons, U.S. Jazz peaked in late April and May, both in terms of total sales as well as ACV sales per point of distribution. In short, stores that got behind Jazz in April and May scored big, while those that backed off or discontinued Jazz probably had no idea they missed a significant sales opportunity.“
“At CMI, our Jazz inventories are in great shape for spring promotions. Retailers can plan on hitting records for the period,” said Robb Myers, Director of Domestic Sales, who also noted that Jazz supplies for Spring promotions are very strong.
“If the scan data teaches us anything about successful retailing of branded apples, it’s the importance of hitting these top seasonal opportunity windows,” said Lutz. “Right now is the prime time to jump on Jazz.”
Lutz noted that, based on scan data from previous seasons, there is still a lot of room to grow Jazz sales this Spring. In past years, Lutz said, years approximately 10,000 stores carried Jazz apples during the season—meaning that at least half of supermarkets have yet to capitalize on the opportunity the apples can provide.
For more on this and other exceptional offerings in the produce industry, stay tuned to AndNowUKnow.
CHARLOTTE, NC - To better boost its buy-side support, FreshPoint has a specific strategy at the forefront of its distribution operations; supporting its local community. In this vein, the company recently hosted farms in the area of its FreshPoint Charlotte office to better uplift its grower partners.
Getting high-quality products to its customers is no simple feat, but as Buyer Joshua Allen recently told me, this emphasis on local provides the company with innumerable opportunities and consistency in delivery.
“We hosted all 15 local farms to teach them about food safety, GAP compliance, insurance, and how to get into wholesale,” Joshua tells me, noting that attendees also received an inside look at delivery and packaging with a warehouse tour. “It was set up to let local farmers know that we support and want to sell local produce rather than purchase too far from outside our region.”
This event was the first local farmer meeting of its kind, but FreshPoint Charlotte has plans to host another in the fall after the peak of its season passes. Events and outlets like these provide the company’s growers with better tools to reduce waste and increase the already high quality of their produce items.
“To be a part of a company that helps to eliminate waste in our community and give local farms a new opportunity to increase their profits is a great feeling,” Josh continues. “Local farms are on the rise and now being noticed by consumers.”
Efforts like these help keep FreshPoint’s primary goals top-of-mind; to market and deliver great products to its customers with exceptional service for both the supply-side and buy-side. The company has also noted an uptick in demand for local from its customers as more companies look to join the Farm to Fork movement.
“The more food we can get to the tables in a timely manner, the better,” Josh says.
In more efforts to keep its supply chain fresh, FreshPoint Charlotte will be hosting its first ever food show on June 6, 2017. Showcasing new and existing products, the event will emphasize the company’s capabilities, in addition to showcasing its vendors, farmers, and FreshPoint Charlotte team.
With more innovations in the works to supply its customers with fresh and safe produce, while reducing waste, stick to AndNowUKnow for all the latest in FreshPoint news.