IRWINDALE, CA and VILLENEUVE-d'ASCQ, FRANCE - In a move to expand its fresh business to the U.S., Bonduelle has entered into an agreement to acquire Ready Pac Foods. Bonduelle (Euronext: BON) is a world leader in healthy living through vegetables, with products across fresh, processed, canned, and frozen goods. While terms of the transaction have not yet been disclosed, it is expected to close by the end of March 2017 following routine regulatory reviews and approvals.
Upon closing, Bonduelle, with more than $2 billion in revenue, will acquire 100% of the common stock of Ready Pac Foods, and plans to run the business as the largest of its five wholly-owned subsidiaries.
“We were impressed with the strength of Ready Pac Foods operational excellence, commitment to innovation, and talented management team,” said Bonduelle Chairman and Chief Executive Officer, Christophe Bonduelle. “Our interest in Ready Pac Foods was not only because of its attractive product segment and rapid growth, but the value the company delivers to their customers and their committed workforce.”
Bonduelle’s acquisition of Ready Pac Foods will help fuel the growth of both entities in the fresh food space and will make the U.S. the largest country of operation for Bonduelle, according to a press release. Ready Pac Foods will benefit from a greater level of investment in its growth, innovation, and global reach.
Moving forward, there will be no changes to Ready Pac Foods senior leadership team, and Chief Executive Officer Tony Sarsam will continue to lead at the helm, reporting directly to Christophe Bonduelle.
“For nearly 50 years, Ready Pac Foods has been at the forefront of innovation in the fresh produce space. We pride ourselves on our performance and the value we bring to our customers and consumers. This agreement with Bonduelle will bring greater level of investment and the global reach that will propel the company into the next phase of growth,” Tony Sarsam, said. “This is a fantastic new chapter for our 3,500 associates and a great step forward. We are thrilled with this investment in our company strategy, and know Ready Pac Foods is going to be right at home with the Bonduelle family of companies.”
Sarsam, who joined Ready Pac Foods in 2013, led the company to significant growth and profitability through his focus on expanding fresh prepared meals and driving operational excellence.
The French company owns four brands of canned, frozen, and fresh vegetables, with presence in 100 countries around the world. In addition to shared business goals, the companies also share strong cultural ties, including corporate social responsibility and key core values.
Congratulations to Bonduelle and Ready Pac Foods on the exciting path of growth and evolution ahead!
NOGALES, AZ – Amidst the ever-shifting climate of the nation, the Fresh Produce Association of the Americas (FPAA) is looking to position the industry with a host of tools to capitalize even further on emerging opportunities. In this vein, the company is gearing up for another long awaited Spring Policy Summit at the end of this month.
“FPAA’s Spring Policy Summit will feature a broad range of issues, from general trade issues to food safety to infrastructure. We have invited experts to discuss a path toward harmonizing North American Food Safety efforts,” President Lance Jungmeyer said in a recent statement, elaborating on some of the points of focus for the upcoming event.
Held from February 28 – March 1st, 2017, the Spring Policy Summit will bring together industry members against the backdrop of Tubac, Arizona. The annual two-day summit will encapsulate a diverse yet selective range of topics, all positioned to further the efficiencies and interests of fresh produce companies. Among these workshops and discussions are the following focal points, in addition to many more:
- How imports of avocados, berries, and other cold chain-sensitive items can be increased with the addition of a cold storage inspection area at the Mariposa Port of Entry in Nogales
- Identification of various infrastructure projects that will allow for future growth of FPAA importers
- Exploring trade dynamics between Mexico and the U.S.
- Harmonizing food safety laws throughout North America
For a full list of event’s agenda, and the prospective issues and industry challenges it looks to challenge, click here. Attendees of the event will hear a host of well qualified speakers covering these crucial topics, against the welcoming Tubac Golf Resort & Spa.
“So, what does all this mean? It means a time of incredible change and opportunity. Companies that are well-positioned to capitalize on the changes will thrive and prosper,” continued Jungmeyer, emphasizing the impact and inherent possibilities within today’s changing climate. “Companies that hide their heads in the sand are likely to find themselves instead upside down - buried up to their neck in uncertainty.”
As Lance himself stated, numbers speak volumes, so register now for a chance to express yourself at the event, give your input on such critical issues, and keep your business one step ahead.
For more on influential events within our industry, keep up with AndNowUKnow.
HANGZHOU, CHINA - Alibaba Group Holding, China’s massive e-commerce powerhouse, may be following in rival Amazon’s brick and mortar footsteps with its latest move. The company announced it has formed a strategic partnership with Bailian Group, one of the world’s the largest retailers by store numbers, in a greater effort to take on a greater portion of the globe’s physical retail market share.
According to a report by Reuters, the firms will initially be cooperating on supply chain technology that taps into Alibaba's wealth of data, later integrating the Alipay online payment service with Bailian Group's existing membership program. With a user base of near 500 million, Alibaba has previously noted its intention of tapping into China's entire $4.8 trillion retail economy and beyond, especially through the use of data-driven management tools for brick and mortar retailers.
News of the deal comes on the heels of Amazon making its own big announcements on physical retail stores. As we reported earlier this year, the company revealed its Amazon Go retail concept, where shoppers scan their mobile device at a turnstile, taking items off the shelf, and walk out the door with no other steps.
Reversely, Walmart has steadily been inching closer to Alibaba’s e-commerce territory, acquiring companies like Jet.com and Moosejaw, as well as recent moves to streamline, expand, and further integrate online operations.
Reuters reports that Bailian currently operates 4,700 outlets in 200 cities, including supermarkets, convenience stores and pharmacies—more than double the stores owned by the country’s staple retailers—Suning, Intime, and Sanjiang—combined.
U.S. EAST COAST - As employees call for a work stoppage in U.S. East Coast ports, could produce transportation in the region face disruption in the coming days?
The International Longshoremen’s Association (ILA) Vice President, and President of the union's Charleston branch, Kenneth Riley, has called for the region’s ports to shut down, according to news source The Loadstar, in an act of protest over increasing job losses.
“Today’s longshore workers are skilled craftsmen who operate expensive and dangerous equipment. The work of these dedicated professionals is responsible for much of America’s economic wealth,” said Mr Riley, according to the source.
While initial reports stated that the action would begin on Monday, February 27, which would coincide with the first day of the Transpacific Maritime Conference when union leaders and terminal employers would engage for the next round of master contract negotiations, Riley stated that would not give the union enough preparation time, according to source the Charleston Post and Courier.
The U.S. Maritime Alliance has reportedly called the possibility of work stoppage "disturbing."
"The master contract between the ILA and (the alliance) forbids any unilateral work stoppage by the ILA for any reason," the organization declared in a written statement. The alliance said it "will enforce the contractual rights of its members to the fullest" if a work stoppage occurs.
“It will be business as usual for us,” Jim Newsome, President and CEO of the State Ports Authority, commented, continuing to state that while the SPA operates the terminals, it does not control work on ships that visit the port.
Newsome added that the ILA’s contract includes a no-strike clause, “so one could assume someone would seek injunctive relief that could be rather quickly granted.”
Riley has commented that government-operated ports, including Charleston’s, are reducing union jobs by hiring non-ILA workers to operate cranes, receive and deliver cargo, and perform other duties. Also, the Waterfront Commission of New York Harbor is creating new layers of background checks and other regulatory that are creating job shortages there.
Check in with AndNowUKnow as we continue to report on this story and its impacts on fresh produce.
LOS ALAMITOS, CA – Passover is right around the corner, and that means retailers should begin to stock staple foods like horseradish root traditionally associated with the important cultural holiday.
The traditional Jewish celebration, celebrating the liberation of the Israelites from slavery in Egypt, begins at sundown on Monday April 10 and ends Tuesday April 18; during this time sales of foods associated with the holiday tradition tend to spike.
“Horseradish and parsley sales go through the roof the week before Passover as they are the most traditional produce items used for the holiday meal,” said Karen Caplan, President and CEO of Frieda’s Specialty Produce, in a press release. “In addition to Passover, fresh horseradish is also used as a condiment for fish and seafood during the Christian observance of Lent, which begins March 1 and ends on April 13. It is a great opportunity for retailers to increase basket ring.”
Additionally, the traditional root has been gaining popularity, in recent years, as part of the growing weekend brunch trend. Horseradish is used as a key ingredient in Bloody Marys and is increasingly-popular in other chef-inspired creations. Baum + Whiteman's Hotel 2017 trends report lists horseradish among the year’s “buzzwords”—noting that use of the root was up 29 percent last year.
“Weekend brunch has become a part of the culture, and the trend continues to grow. Fresh horseradish is going to grow along with it,” said Caplan. “Once shoppers experience fresh horseradish while dining out, they will try to replicate it at home.”
Frieda’s notes that you can contact the company to pre-order horseradish—as well as other Passover essentials including parsley, beets and baby beets, fingerling potatoes, parsnips, parsley root, specialty carrots, and baby apples.
For more on retail opportunities in the produce industry, check in with us at AndNowUKnow.
MCLEAN, VA - Land concerns are an expanding issue in agriculture. The population is growing and creating more mouths to feed, while farmland is being converted to commercial use faster than ever. And, as acreage continues to disappear, it drives prices of existing land up.
That’s where Gladstone Land Corporation comes in. I connected with David Gladstone, CEO and President, to discuss how the industry can address this problem.
“At Gladstone Land, we do not have, as part of our business plan, the desire to sell any of our farms for development. We buy farms to remain as farms for eternity,” David tells me. “We like to buy farms that have been placed in a program for conservation as farmland. We like to rent the farmland to farmers that want to stay on the farm for a very long time. We want to be the real estate partner to the farmer. In essence, we seek to preserve the farmland for our farmers.”
Gladstone is a publicly traded real estate investment trust. According to David, people should know there are strong returns from investing in farmland. There are many benefits to becoming a shareholder; according to the NCREIF, the overall average return is 13.2% over the past ten years, compared to 6.8% for the NAREIT index, and 5.8% for S&P Index. In addition, for those who hope to help the industry, this model also allows farmers to curb the problem and preserve high-value acreage.
The company focuses on acquiring high-value land. David explains that land can be defined as high-value when revenues and profits derived from farms are higher than the average farm. This means:
- Adequate water supply and clean water
- Soil that is fertile and rich in nutrients
- Sunny and low-wind conditioned weather
- Long growing seasons, with year-long sunlight
- Location in prime growing region with established rental market and abundance of strong farmers to lease
- California has the highest-valued farmland, followed by Oregon, Arizona, and Florida
Gladstone helps by buying land and renting it back to farmers, offering triple net leases to tenants. As we previously reported, there are innumerable benefits for the tenant, as the sale allows them to free up additional capital which can be reinvested into the operation of the farm business.
Currently, Gladstone has its priority on annually-planted fresh produce crops, many of which are organic or in the process of converting. This type of farmland offers advantages through its water access, price volatility, lack of government dependence, and overall lower risk.
The Gladstone Land model relies on the ability to borrow money at lower rates than the land is being leased, so that shareholders see the return on the difference between what is collected through farmer’s rent and what the company has to pay the lending institution in interest for helping them buy the land. Since 2013, Gladstone has made 48 consecutive monthly cash distributions to common stockholders, and over the past 24 months, the company has increased distribution rate five times for a total increase of 43.3%.
“People buy our stock for the steady dividend and the safety and security of knowing that the dividend comes from the oldest profession in the world: farming. People have to eat, and you cannot grow food to eat without dirt. We own the dirt and rent it to the farmers,” David shares. “It is a very simple and reasonably safe business model. Once people understand this business model, they love it.”
As the industry continues to tackle this issue, Gladstone Land strives to provide solutions for farmers and those looking to empower them.
PHARR, TX – Pharr International Bridge has broken its all time record for total number of southbound crossings. January marked the auspicious occasion for the international point of entry, with the city’s Mayor, Ambrosio Hernandez, M.D., and other city leaders ready to celebrate at the scene.
"Our bridge continues to be a valuable asset to Pharr, to our region, to our country, and to our neighbors, as shown by the steady and continued increase in crossings," said Mayor Hernandez, in a press release from the Pharr International Bridge. "Here in Pharr, we are constantly working toward decreasing bridge wait times and have made great strides to improve the infrastructure, facilities, and processes at the bridge to get our trucks, vehicles, and goods crossing quickly, safely, and efficiently."
In January, total southbound truck crossings reached 47,660—an increase of 3,727, 8.48% up from the same period a year prior. This was the highest number of crossings ever recorded at the bridge in one month according to data from the Bridge’s monthly Crossings and Revenue report.
The bridge has seen a steady increase in monthly crossing numbers this year, and year-to-date totals are up, as well. Total crossings by both cars and trucks were up 8,327 (7.6%)—from 109,573 in January 2016 to 117,900 last month.
Year-to-date totals for FY 16-17 (October to January) were 469,164—up 20,539 (4.58%) from the same period a year prior. And total year-to-date revenue increased by $196,471 (4.61%) compared with the same four-month period last fiscal year.
For more on this and other important points of entry in the fresh produce industry, check in with us at AndNowUKnow.
GRAND JUNCTION, MI - One of the four partnering companies to make up Naturipe®, MBG Marketing is now making a strategic move into the global foods market with the establishment of MB Global Foods.
“This is a very exciting time for MBG Marketing and its grower members. Our cooperative just celebrated its 80th anniversary and this new business opportunity gives us a good start on the next 80 years,” commented President and CEO Larry Ensfield.
One of the world’s largest grower-owned blueberry and blackberry marketing cooperative, MBG Marketing said in a press release that this latest development will complement its commitment to growing its product portfolio in cooperation with Naturipe Value Added Foods.
Ensfield and MBG’s Board of Directors expressed excitement for the new venture in partnership with food industry veterans Stephen Mullin and Paul Gibis, who will be managing MB Global Foods.
Mullin and Gibis bring years of experience in servicing international food markets, and will be at the AFFI-Con 2017 meetings being held March 4-7 in San Diego, CA.
A new international frozen fruit and vegetable business based in Hudson QC, Canada, MB Global Foods is set to begin in March of 2017.
MBG Marketing said that it plans to make substantial capital investments into its two existing IQF and value-added processing facilities in Michigan and Georgia to support MB Global Foods’ key initiatives, which will include the procurement of food stocks from around the world to support these processing capabilities.
WENATCHEE, WA - The latest fruit to break interstellar boundaries is none other than CMI Orchard’s Kanzi® brand apples. Blasting off to the International Space Station from their Washington State orchards, this specially picked selection of Kanzi® apples made for a flavorful treat from home for this lucky group of astronauts.
“We think it’s an absolutely perfect fit for astronauts wanting a fresh taste from home,” said Bob Mast, CMI Orchards’ President, about the landmark journey. “NASA wants to work directly with growers to secure the freshest and most delicious fruit imaginable for the space crew and Kanzi® apples fit the bill.”
According to a press release, the unmanned SpaceX-10 cargo flight was launched on February 18, 2017, from Kennedy Space Center in Florida, headed directly to dock at the International Space Station. The flight’s primary mission was to resupply the Space Station, as conducted under the Commercial Resupply Services contract with NASA. Mast shared that the Kanzi® apples in this resupply mission were directly selected by the Food System Manager at the Johnson Space Center.
CMI Orchards was able to bring the Kanzi® mission to life with the help of Michigan-based Kanzi® Alliance grower, Applewood Orchards. The company’s Scott Swindeman, was delighted to partner with CMI to provide some of the very best apples to the crew of the Space Station, sharing, "With flavor that is out of this world, it is only fitting that Kanzi® apples have the opportunity to be universally appreciated.”
Have you gotten your hands on this galactic treat yet? Visit http://www.cmiapples.com/retailer/kanzi to learn more.
YAKIMA, WA - As you look to promote the best in your produce department, here’s What’s In Store for vertically-integrated family farming operation, Borton Fruit.
With over 100 years of farming expertise, Borton Fruit has been family-owned and operated for four generations. Growing nearly all our own fruit to ensure both quality and consistency in all our products, Borton Fruit was one of the early adopters of high-quality varieties such as high-color Gala, Aztec Fuji, Honeycrisp, and Pink Lady.
Today, we are not only one of the largest growers of Honeycrisp in the U.S., but are growing and developing new and exciting proprietary varieties like the popular Rockit™and KORU® apples.
Using innovative farming, including high-density plantings with state-of-the-art trellis training systems and continually replacing older orchards with the newest and best strains of each variety, we look to make sure our crops provide high-density and high-quality and a consistently fresh eating experience.
We do all this so that you and your shoppers have the peace of mind that our fruit is grown, packed, and stored with the utmost care and commitment to quality and food safety, leaving the eater consumer with nothing left to do but bite, and enjoy.
Thank you for watching What’s in Store.