CHESHUNT, ENGLAND - The saga of Tesco’s accounting drama may soon be coming to a close, with the U.K.-based retailer agreeing to pay nearly $269 million (214 million pounds) in order to resolve its issues with Britain’s Serious Fraud Office and Financial Conduct Authority.
According to a report by Bloomberg, Tesco has shared its U.K. unit will pay $161 million (129 million pounds) under a deferred prosecution agreement with the Serious Fraud Office, as well as $107 million (85 million pounds) to compensate its investors under a separate settlement with the Financial Conduct Authority.
This payment stems from Tesco’s 2014 announcement that it had overstated profits by $328 million (263 million pounds), which was later found out to be low by about $70 million by independent auditors, as we’ve reported previously. At the time of the error, eight senior staff members were suspended, and Chairman Sir Richard Broadbent had resigned.
Tesco has shared it expects to record a one-time charge of 235 million pounds to cover the penalty, compensation and related costs, Bloomberg reports. Investors who bought shares between August 29 and September 19, 2014, will also be eligible for compensation of 24.5 pence a share, plus interest.
Tesco and the SFO will seek final court approval for the proposed regulatory deals on April 10.
INDIANAPOLIS, IN - The Produce Mom® and Indianapolis-based video production company United Media Now Productions, are teaming up to create job opportunities for teens with disabilities.
"In the produce industry, sustainability is everything," said Lori Taylor, Founder & CEO of The Produce Mom. "Through partnership with United Media, The Produce Mom promotes fresh produce with sustainability by empowering teens with jobs and life-sustaining career skills. It's a complementary relationship: my business receives a quality product and the employees of United Media are paid well to do a variety of interesting work."
A group of talented teens has produced over 80 recipe videos for The Produce Mom, according to a press release. Together with United Media, the team has produced videos for a number of produce companies. Amongst them are:
- Chelan Fresh
- Duda Farm Fresh Foods
- Josie's Organics
- Kroger
- Mann Packing
- Monterey Mushrooms
- Military Produce Group
- NatureSweet Tomatoes
- Naturipe
- Ocean Mist Farms
- Sage Fruit
- Wada Farms
- The National Watermelon Promotion Board
United Media Now initially began as a YouTube show started by Valerie Strohl in 2012. Entitled “Sarah’s Great Day,” the channel looked to help Strohl’s daughter Sarah—who has Down syndrome and was struggling in school—about math through cooking.
“My goal with 'Sarah's Great Day' was to change the culture and perception of people with disabilities," explained Strohl. "Through United Media's partnership with The Produce Mom, we have made great strides towards our mission. One way we accomplish this is through empowering teens, both with and without disabilities, by providing jobs, experience, and competitive wages in the hyper-relevant field of commercial video production."
"Our tagline is 'There's a produce mom in all of us!'" said Taylor. "And it's so true! Our team of advocates has always been diverse, including women who aren't moms, as well as men. I love how working with these teens shows, again, that anyone can advocate for the benefits of eating more fresh fruits and vegetables, while at the same time providing the students a valuable, résumé-building opportunity to work in an inclusive setting on national and international produce brands."
Now, United Media's program with The Produce Mom, which started in August of 2015, is an official part of the curriculum at Zionsville Community High School, giving students the ability to earn school credit or receive a competitive and equitable wage. For many students with disabilities, the company said, this may be the best path they have for current and future employment.
MISSION, TX - Viva Fresh Produce Expo has the buy-side community singing its praises for its full scope of interactive educational sessions this year. With a focus on providing attendees with proactive ways to grow their business and capitalize on 2017 produce trends, the upcoming sessions touch on current affairs, uncertainty around trade policy, labor supply, and more. One session even features our own Vice President of Sales, Whit Grebitus!
“The continued demands on agriculture from supply-side economics to consumer perception continue to raise the stakes not only for producers, but for all of us as retail and foodservice buyers,” Gary Campisi, Senior Director of Quality Control, Fresh Grocery Division at Walmart, shared about the importance of educational sessions. “The need to stay on top of current issues and educate ourselves has never been more important.”
According to a press release, 2017’s agenda was guided by the Retail and Foodservice Advisory Board, which was established earlier this year to provide strategic guidance, as well as give attendees a “behind the curtain” look at what retailers and foodservice companies are looking for from their produce partners.
“I commend the Viva Fresh Education Committee for bringing us so many good ideas and relevant content to choose from and select for the Viva Fresh Expo audience,” Frank Pagliaro, VP National Produce/Floral Procurement at Loblaw Companies, added. “As a buyer, I know first-hand the responsibility I have, to not only understand the mind of the consumer, but the challenges of the producers to bring high-quality, affordable produce to the market in an ever-changing and dynamic marketplace and my continued education is critical to my success as a valuable partner.”
Melinda Goodman of Full Tilt Marketing and Chair for the Viva Fresh Produce Expo Educational Committee, touched on the importance of the expo’s providing quality educational sessions to its attendees.
“Looking through the broad lens of current challenges and opportunities in our industry—a range of topics was on the table for consideration including trade policy, consumer issues, food trends, and farming technology,” she commented. “We have a responsibility to deliver actionable content that helps attendees improve themselves and their businesses, and our retail and foodservice advisory committee has played a critical role in aiding the decision making process.”
Beginning on Friday, April 21, at the Hilton Austin Hotel in Austin, Texas, the following interactive sessions are available for attendees:
- Our own Vice President of Sales, Whit Grebitus, will be providing his insights during, “How Technology and Marketing Drive Growth,” touching on making attendees’ marketing strategy more effective through the use of technology.
- “Fresh Produce Rx,” will feature Chef and sustainable food leader Michel Nischan discussing the critical role that produce plays in combating health issues, offering attendees tips on leveraging this trend to support the well-being of their customers and their bottom line.
- Professional agrologist, Rob Saik, will be discussing both the perception and reality of GMOs, in an effort to help attendees make an informed decision about using genetically engineered crops on their own farms or incorporating those products into their item mix.
- This year’s virtual tour will follow Red Sun Farms, which will use video footage to share the latest innovations in controlled atmosphere agriculture, as well as showcasing its hi-tech greenhouses that produce sustainable, high-yield crops with a smaller footprint.
- National Mango Board’s Wendy McManus, and Dennis Kihlstadius, Principal of Produce Technical Service, will provide hands-on advice, explaining the value of ripening programs, as well as touching on the growing consumption and category sales in emerging produce categories.
- Last but not least, experts on trade policy in the agricultural sector will examine how potential changes to the North America Free Trade Agreement (NAFTA) could impact the produce industry at large. This will include panelists Robert Guenther, Director of Policy and Public Affairs at the United Fresh Produce Association, Luis Ribera, Ph.D; Associate Professor and Extension Economist at Texas A&M University, Ron Lemaire, President of the Canadian Produce Marketing Association and Raul Urteaga, General Coordinator of International Affairs at SAGARPA in Mexico, who focus on issues including pricing, supply, and demand.
To learn more about these sessions and the expo in its entirety, visit the VivaFreshExpo.com.
SEATTLE, WA – With fresh produce top-of-mind for Amazon’s future strategies and successes, the retailer is looking to capitalize off of today’s consumers need for fresh, and fast. Launched today, the online retailer has unveiled a new physical store format called AmazonFresh Pickup.
Exactly as its name sounds, this new format was tailored specifically for the grocery-minded consumer to receive their groceries quickly and on the go. After placing their orders through AmazonFresh either on the, shoppers can receive their order from a Pickup location as soon as 15 minutes after hitting “place order.”
The physical locations are designed primarily for ease. After place their order and picking a time slot to receive their goods, consumers then drive to their Pickup location, pull into a parking space, and wait a brief amount of time for their groceries to be loaded directly into their vehicle. Want to see the plan in action yourself? Watch the video above.
This move comes on a string of investments by Amazon into fresh grocery realms. The retailer is continuously looking for innovative ways to further enamor consumers with the possibilities of fresh fruits and vegetables, such as a new partnerships with Martha Stewart, Amazon Go stores, and expanded availability.
The concept plans were discovered only earlier this month, marking Amazon’s quick moves towards expanding its grocery capabilities and this strategic focus. The drive up grocery store will allow consumers to order fresh produce, meats, and dairy, in addition to some household goods as well.
As of today’s launch, there are only two AmazonFresh Pickup locations, both in the retailer's homebase of Seattle. TechCrunch noted that while the program is currently in its pilot mode and is only available to Amazon employees, the service will be free to all Amazon Prime members once it expands.
What else does Amazon have in store for our beloved fruits and veggies? AndNowUKnow will continue to report.
ORLANDO, FL – Darden Restaurants, Inc. announced this Monday that it has agreed to acquire Cheddar’s Scratch Kitchen for $780 million. The deal will add Cheddar’s to a portfolio of brands that includes Olive Garden, LongHorn Steakhouse, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, and Eddie V’s.
"Cheddar's is an undisputed casual dining value leader with broad appeal and strong average restaurant volumes," said Darden President and CEO Gene Lee. "Cheddar's is a great fit in the Darden portfolio because it complements our existing brands. This addition will also enable Darden to further strengthen two of our most important competitive advantages: our significant scale and our extensive data and insights."
The Arlington, Texas-based Cheddar’s operates 165 locations across 28 states and, Darden noted in a press release, has significant growth opportunities in new and existing markets and average annual restaurant volumes of $4.4 million.
Highlights of the transaction include:
- Net of certain tax benefits extimated at approximately $30 million, with the purchase price representing a 10.4x multiple of trailing twelve month adjusted EBITDA ending December 2016.
- Darden expects between $20 and $25 million of annualized pre-tax run rate synergies by fiscal 2019.
- Total acquisition and integration-related expenses are expected to be approximately $25 to $35 million.
- Darden will also pay $10 million for certain Cheddar's transaction-related tax attributes and reimburse its equityholders for pre-closing capital expenditures on new restaurants under development.
Cheddar’s President and CEO Ian Baines will remain in his position at Cheddar’s and report directly to Lee.
"We are excited about the opportunity to be a part of Darden,” noted Baines. “Our operating philosophy and values are similar and we believe this transaction provides a great opportunity for our team members to continue to grow and develop in their careers. Additionally, Darden's expertise will enable us to further capitalize on our growth potential."
The transaction is expected to occur in Darden’s fiscal 2017 fourth quarter. According to a CNBC report, the announced acquisition sent restaurant group’s stock soaring more than six percent this morning.
The company also announced robust third quarter financial results this morning, with highlights including:
- Total sales from continuing operations increased 1.7% to $1.88 billion.
- Reported diluted net earnings per share from continuing operations increased 57.1% to $1.32 and increased 9.1% from last year's adjusted diluted net earnings per share.
- Same-restaurant sales increased 0.9% for the quarter.
"We continued to gain market share as we outperformed industry same-restaurant sales by a considerable margin again this quarter," said Lee, in the company's financial statement. "Our teams remain incredibly focused on driving strong operating fundamentals, and I'm very proud of the work they are doing to create memorable experiences for our guests."
Darden also revised its 2017 outlooks this week—raising expected earnings per share from $3.87-$3.97 to $3.95-$4.00—reflecting an updated outlook for same-restaurant sales of approximately 1.5%.
For more on this and other important goings-on in the produce industry, stay tuned to AndNowUKnow.
MURRIETA, CA - What says, “I love you” quite like a bag of free avocados? If you look at the results of a recent West Pak Avocados campaign, it seems like sending fruit to your loved ones may be the new bouquet of roses.
Ahead of Valentine’s Day 2017, the company kicked off its Send Avocado Love #YouGotAvos event, providing consumers the opportunity to send complimentary I Love Avocados™ branded bags to their special someones. The campaign reportedly sent fans, bloggers, and online influencers on Instagram abuzz, growing engagement by 258% in just a matter of hours. In a matter of days, the reach on social topped 140,000—as if you needed more proof that true love and this tasty superfood go hand in hand.
“We were genuinely thrilled with the response of the initial campaign, as it just proves the power of avocados and how people are so very passionate about them,” shared Marketing Manager George Henderson. “I Love Avocados is planning to create more fun avocado freebies and giveaways throughout 2017 to spread avocado love everywhere. Fans can keep in touch through news, giveaway announcements, and coupons by signing up at iloveavos.com and following on social media.”
In the weeks that followed the campaign’s launch, complimentary bags of I Love Avocados emerged on the doorsteps of delighted avocado fans across the country. Each delivery included clues to unlock the identity of their secret admirers—all they had to do was spread the word on Instagram with the hashtag #YouGotAvos. In addition, the goody bag gifters could repost an e-card from I Love Avocados’ Instagram to notify their recipient, #YouGotAvos.
Since Friday, March 17, 2017, I Love Avocados realized a combined reach of 89,000 (and growing) on Instagram from both mentions and hashtag posts by the brand's influencer family and community of avocado lovers, according to a press release.
AndNowUKnow was lucky enough to be on hand for the I Love Avocados debut at last year’s Produce Marketing Association (PMA) Fresh Summit Conference and Expo. You can watch our exclusive interview from the show floor here for more on this millennial targetted brand.
ORLANDO, FL – Looking to further enamor consumers with the fresh fruits and vegetables ripe from Florida soil, Sunripe Certified Brands is finding springtime success in strategic investments.
CEO of Sunripe Certified Brands, Jon Esformes, recently met me on the show floor of SEPC’s Southern Exposure to talk proprietary tomatoes and growing a program.
“Our brand, the Bella Roma, was started back in the 80s. We used an old Italian variety,” Jon says of the exclusive offering.
The variety, Jon tells me, was cultivated by the company to differentiate from current selections on the domestic market. A partnership with the company’s seed developer led to the proprietary offering, which the company has done a $2 million revamp to its packing facility in order to support.
This high-quality tomato isn’t all Sunripe is focusing on as consumers prepare for spring possibilities. The company is also launching into its second year with fresh Florida-grown strawberries. Jon tells me that so far, the program has received great retail support for both its organic and conventional berries.
“It’s March, it’s Florida, spring is here. Come buy your produce from Florida!” John says.
What else is the Bella Roma known for, and where is Sunripe Certified Brands heading from here? Watch our exclusive video above to find out.
VALENCIA, SPAIN - A discovery by Spanish authorities has shown fresh produce being dragged once more into the seedier side of import/export, with some impressively-crafted bananas carrying more than potassium to their destination.
The country’s police uncovered 57 pieces of artificial fruit, according to source RT News, stuffed with a total of seven kilograms of cocaine. The faux fruit was packed amongst real bananas to avoid detection, and an additional 10 kilos were found packed in the cardboard boxes. The estimated street value for the 17 total kilos uncovered was not reported.
The bust was made during an "operation" ran in Malaga and Valencia, two cities on the Spanish coast, on Sunday, March 26.
While in Valencia, Ruptly video agency shot footage of officials removing the banana-looking cover to reveal black electrical-taped bags stuffed with the illicit drugs. Officers used hand tools like screwdrivers to break open the fruit and reveal the powder inside.
Police reported that two were detained for drug trafficking charges, with a third under investigation related to the crime.
It was not reported what the local charges might mean for the perpetrators, or if there were more suspected to be involved. But, AndNowUKnow will continue to report on successful apprehensions of those looking to tie fresh produce to the dark side of trade.
SAN FRANCISCO, CA – Fresh Solutions Network is giving props to Dr. Oz this week, for the celebrity MD’s March 23 broadcast. On that show, Dr. Oz gave his audience “permission to eat potatoes again”—noting that the sometimes maligned vegetables are, in fact, “nutrient power houses” packing a mere “100 calories per spud” with no fat content.
“We are excited that consumers are finally hearing the great news about potatoes that those of us in the industry have known for a long time,” said Kathleen Triou, President and CEO. “Products like Side Delights® fresh potatoes are a natural, healthy, family favorite side dish, and we expect to see an increase in purchasing habits as the medical community and consumer media help restore the reputation of the potato.”
In a press release, the company noted how the low-carb craze damaged the reputation of potatoes by creating the misconception that they were “fattening” and generally unhealthy. Medical experts have countered that potatoes have many nutritional benefits that might surprise consumers. In addition to being fat free, gluten-free, sodium free, vegan, and low-calorie, potatoes are rich in vitamin C and have more potassium than a banana or broccoli.
Fresh Solutions Network lauded Dr. Oz’s efforts to correct the misconceptions of “tater haters” with nutritional facts on spuds. Dr. Oz’s syndicated series is entering its 10th season next year and has, since its beginnings, aimed to be a “field guide in helping viewers navigate their path to wellness.”
For more on all things produce, check in with us at AndNowUKnow.
WASHINGTON, DC – The U.S. Department of Agriculture (USDA) has cited World Best Tropical LLC, Doral, Fla., for failure to pay for produce.
According to a recent USDA press release, the company failed to pay $341,917 to eight sellers for 45 lots of produce. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, World Best Tropical LLC cannot operate in the produce industry until March 17, 2019, at which time it may reapply for a PACA license.
The company’s principal, Marcos R. Wood, may not be employed by or affiliated with any PACA licensee until March 17, 2018, and then only with the posting of a USDA-approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. 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.
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.