FOWLER, CA – With rains continuing to bring wet weather to California, how has this deluge of winter precipitation impacted 2017 crops? Recent weather included, Bee Sweet Citrus says that the outlook is still favorable for the citrus category.
“The weather has definitely slowed down harvest, but we’re still on time,” Director of Communications Monique Bienvenue tells me of the company’s current offerings. “As our farm and field teams continue to prepare for wet weather, we’ve made it a priority to get large amounts of picking done at one time.”
Monique tells me that the company has lost a few days of picking because of the recent storms across California, which is also contributing to the market’s current high demand for citrus.
As the company moves through working with its selection of Navel oranges, mandarins, Minneolas, Blood oranges, Cara Caras, Meyer Lemons, and regular lemons, Monique says that Bee Sweet hasn’t been negatively impacted by the wet weather as the company was ahead of schedule to begin with.
Even at this stage, Monique says that the quality of this year’s crop has been exceptional. Bee Sweet has noted sugar levels that are higher than usual, with fruit that peels easily and eats well.
As wet weather continues to spatter California and its growing crops, AndNowUKnow will keep a close eye on the state of the citrus market, and other impacted segments.
SEATTLE, WA – Amazon is keeping itself on the move this year, with new reports surfacing of another possible distribution center in the making. The online retail giant has just been revealed as the incoming tenant for property in Elkton, Maryland.
On the agenda for the local council last night, Jan. 17, the city was to vote on a $120,000 forgivable county loan to support the development, according to local news source Cecil Daily.
If approved, and the plan were to move forward, the property would become a new 1 million plus square-foot distribution center with as much as 700 full-time jobs for the region by 2020.
This would make for Amazon’s second distribution center in the state, with Amazon expected to invest $90 million in capital improvements to the site.
The vote is reported to also serve as a $1.2 million conditional loan’s endorsement, which would be from the Maryland Economic Development Assistance and Authority Fund (MEDAAF).
There seemed to be strong support according to the source, mainly due to the need for jobs the project would bring; local representatives like Cecil County Executive Alan McCarthy and County Councilwoman Jackie Gregory both expressed favorable opinions about the deal.
This prospective move comes on the heels of Amazon’s recent plans to boost its workforce and hire upwards of 100,000 full-time employees in less than two years.
What’s next for Amazon and its growth plans? AndNowUKnow will continue to report.
WENATCHEE, WA - Peak season for the distribution and sales of top branded apples is fast-approaching, according to CMI Orchards. And the exclusive U.S. grower of Ambrosia™ and co-marketer of U.S. grown KIKU® Kanzi®, Jazz®, Envy® and Pacific Rose®—has tips on how retailers can drive sales in late-winter and early-spring.
“Mid-January to mid-April are the key months when leading retailers entice consumers to try these new apples,” said Steve Lutz, Vice President of Marketing, according to a company release. “During this period, branded apples are perfectly positioned to replace category dollars that are lost as local and regional apples decline in availability.”
CMI Orchards initiated a study to evaluate key category trends and opportunities, and its analysis shows that mid-January to mid-April is the peak time for maximizing sales of branded apples. The study also indicated that expanded distribution of premium branded apples and aggressive retail promotions during this period drive consumers’ transaction size and increase overall apple category performance for supermarkets.
“The data reveals that retailers with the strongest performance in the overall apple category focus on extracting incremental sales by highlighting branded apples for their customers,” said Lutz—noting that the strongest performing retailers develop distribution and promotion strategies to transition customers into branded apples as regional apples disappear from supermarket shelves.
According to CMI’s study of national scan data, distribution and sales of branded apples like those marketed by CMI have traditionally jumped in January and this jump carries the category’s momentum into April.
“The scan data shows in the fall branded apples typically generate about 5% of total sales but this number doubles after the first of the year. Retailers that miss this window to fully promote branded apples sales leave dollars on the table,” said Lutz. “It shouldn’t surprise anyone that the retailers with the strongest performance in branded apples are also the retailers with the strongest overall apple category.”
Lutz noted that many retailers build a following for branded apples during the winter months and carry that momentum into future seasons. He added that most new branded apples like KIKU®, Kanzi®, and others carry retail prices in excess of $2.00 a lb. “As supermarkets shift consumer purchases they simultaneously drive the average category transaction because shoppers buy apples with a higher average price.”
CMI’s Vice President of Sales, Robb Myers, said that broader distribution of branded apples after the holidays historically tends to reinvigorate the apple category.
“With Ambrosia™, the three strongest weeks of the entire season occur in mid-January, mid-March and two weeks in April. With some of the local and regional competition wrapping up we’re entering one of the best periods of the year to expose customers to branded apples,” noted Myers. “We’re really excited about the quality and size of the Ambrosia™, KIKU® and Kanzi® we have coming out of storage. We also see strong opportunities with larger sizes in Envy® and Pacific Rose®.”
Myers added that CMI’s supply of branded apples this year is excellent, and noted that retailers should consider two-pound pouch bags as a prime opportunity to introduce consumers to branded apples. According to Myers, colorful, high-graphic packaging reinforces the quality of the product, and can drive repeat sales.
“Look at CMI's two-pound Ambrosia™ pouch bag. It’s the number one selling two-pound apple bag in the U.S. No other apple out-sells it, even Honeycrisp. We expect to see record sales of Ambrosia™ over the next 10 to 12 weeks. Supplies of KIKU®, Kanzi® and Jazz® are also strong so there is every reason retailers should expect to drive big sales with these apples.”
For more on opportunities to drive category sales and ways to take advantage of exceptional produce offerings, check in with AndNowUKnow.
SALINAS, CA - Josh Ruiz has been announced as Church Brothers Farms’ new Vice President of Ag Operations.
Ruiz is being moved up from his previous position with the company as Director of Harvest Innovation, bringing not only familiarity, but also an impressive portfolio before his time at Church Brothers.
Prior to joining the company, Ruiz spent time at Tanimura & Antle as General Manager of Harvesting, working directly for Bob Antle. He was then promoted to Director of Harvest, having developed and refined cauliflower harvest equipment for the company that saved 25 percent of the labor costs, increased efficiencies, and crew capacities, according to a press release.
In addition to his work with Church Brothers, Ruiz also works for his family’s commercial winery, Twisted Roots.
In this new position with Church Brothers, Ruiz will report directly to the company’s CEO, Steve Church, and Vice President of Quality, Food Safety, and Regulatory Affairs, Drew McDonald.
“Josh is passionate about farming and he puts his passion first and foremost and will compromise nothing in its pursuit,” McDonald said. “Josh is constantly thinking about the next generation of harvest, growing, and methods to improve our operations.”
He will now be responsible for all its farming and harvesting operations, seeking to lead both areas into a new age of innovation and automation.
Congratulations to Church Brothers new Vice President of Ag Operations!
BENTONVILLE, AR - Consistent with the company’s growth of previous years, Walmart has announced it anticipates creating approximately 10,000 retail jobs in the U.S. this year, and 34,000 jobs overall with the consideration of other sectors.
"Walmart is investing to better serve customers,” said Dan Bartlett, Walmart Executive Vice President for Corporate Affairs. “With a presence in thousands of communities and a vast supplier network, we know we play an important role in supporting and creating American jobs. Our 2017 plans to grow our business–and our support for innovation in the textile industry–will have a meaningful impact across the country.”
Currently, Walmart employs about 1.5 million workers, and the additional retail jobs would represent less than 1 percent of its total workforce, according to source Reuters. The majority of Walmart's new retail jobs will be in 59 new stores planned for the fiscal year beginning in February as well as in e-commerce services, the retailer said on Tuesday. The new stores will also support about 24,000 construction jobs, which will make for a final number of 34,000 created jobs.
Walmart said the number of its new jobs would be consistent with previous years. They will be part of a previously announced $6.8 billion capital expenditure plan, which includes construction and remodeling of stores and distribution centers, for the fiscal year starting on Feb. 1.
Walmart also said that by July, it would open 160 training academies, adding to the 40 it already has. More than 225,000 workers will receive up to six weeks of specialty training and graduate from the academies in the coming fiscal year, the company said.
This follows news earlier this month, where people familiar with the matter revealed that hundreds of corporate jobs are on the chopping block. Does this outline a new strategy for the company, as it streamlines its corporate structure and focuses on expansion?
For more of the latest in retail expansion and its impact on the fresh produce industry, stay tuned with AndNowUKnow!
SPRINGFIELD, IL – Looking to focus on its global growth even further, The Tom Lange Family of Companies has brought a new veteran to its Seven Seas team. The company has announced Miles Fraser-Jones as Director of Global Business Development for its New Jersey office.
“I am extremely excited and am looking forward to the opportunity that the Tom Lange/Seven Seas Family have placed before me as the Director of Global Business Development. I believe the expertise and the experience of the team around me will aid in the company’s growth strategy for the future,” stated Miles.
Miles officially began his position on Monday, January 9. According to a press release, Miles brings 18 years of food-centered experience to the Seven Seas team, most recently as Senior Vice President of AMC Direct, Inc.
“Miles brings a wealth of knowledge in global sourcing and logistics experience which is a perfect fit for the New Jersey office,” said Greg Reinauer, President of the Tom Lange Family of Companies. “Additionally, his knowledge of the South African citrus industry will enhance and help grow a core piece of the New Jersey office’s business. Miles enhances our ability to provide outstanding service to our customers and growers.”
Seven Seas reaches across the United States, from coast to coast, in addition to having three international locations in Holland, Russia, and South Africa. Seven Seas serves as the produce sourcing arm for the Tom Lange Family of Companies, and grows, ships, packs, imports, and exports a full line of fruits and vegetables.
The company also has a bolstered focus on citrus and berry categories, providing selections from these categories to retailers throughout the U.S. and Canada.
As The Tom Lange Family of Companies continues to focus on new stages of growth, AndNowUKnow will be sure to have up-to-date announcements on its latest strategies.
RIO RICO, AZ - With MAS Melons and Grapes’ winter melon season well underway in Colima, Mexico, the company is continuing on its mission to provide the best-tasting, most consistent product out there. I spoke with MAS Salesman and 2nd generation distributor Mikee Suarez about how he sees the rest of the winter melon deal panning out, as well as what else is to come from the company in its 20th year of business.
“The MAS winter deal in west-central Mexico covers honeydew, watermelon, and mini watermelon, and will last from when we started on December 26th, and run until mid- to late-April,” Mikee tells me as we go over the season. “We grow our honeydew ten months out of the year from October through July—first in Caborca, then Colima, and back to Caborca. Growing out of Mexico gives us the advantage of a great quality honeydew with high brix thanks to the region’s warm weather.”
Mikee shares with me that there has been a boost in demand for conventional watermelons, and both MAS and the industry at large have responded by increasing acreage. Mini watermelons have also been seeing great demand and a high movement market, with MAS’ supplies of the new portfolio item selling out almost every day.
So, why are retailers responding so well to the MAS winter melon program? Mikee says the key lies in the flavor. “One of the things we’re really proud of at MAS is that we really take flavor into account,” he explains. “If we can’t provide our customers with a great tasting melon, why even bother? Our goal is to provide consumers with the best tasting fruit out there and get them to keep coming back for more. It's all about the eating experience.”
With the slower winter season winding down, MAS is just now looking towards the horizon for the busy spring and summer seasons. More melons and grapes will be on the way, but first out of the gate is the company’s growing asparagus deal.
“We will start our asparagus season out of Northern Mexico in the first week of February and expect to have supplies until mid April," Mikee says. "The industry has noticed that production is a little bit behind schedule, but this will make for promotable volumes right out of the gate when the crop begins to come in. We should have a great supply for our third year of production. Our volume has seen substantial growth between 2014 to now.”
Also on the horizon for MAS Melons and Grapes this year is the company’s long awaited 20th anniversary. MAS will hit the impressive two decade mark this upcoming August 14, and you can bet Mikee will be ready to celebrate.
“As a 2nd generation member of MAS, it’s been amazing to see what my father Miky and our grower partners have been able to create over the past 20 years,” Mikee says. “Being able to see everything our company has accomplished together over the years is a beautiful thing.”
As MAS continues into its 20th year of providing great quality produce, stay tuned to AndNowUKnow for continued updates on the spring and summer seasons.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) cited George Melton, doing business as GM Brokerage, Collierville, TN, for failure to make full payment promptly in the total amount of $440,902 to 22 sellers for multiple lots of produce in violation of the Perishable Agricultural Commodities Act (PACA).
According to a press release, USDA and George Melton entered into a consent decision and order finding that the company engaged in willful, repeated, and flagrant violations of the PACA. However, because the company subsequently paid the unpaid produce sellers in full and paid a civil penalty in the amount of $37,500, the finding of violation was permanently abated without further process and the case has been closed.
The PACA Division, which is part of USDA’s Agricultural Marketing Service (AMS), regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.
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.
BENTONVILLE, AR - For the second time in less than a year, Walmart has announced major managerial changes.
According to Reuters, last Friday, January 13, the company circulated an internal memo stating that it will reshuffle its executive structure—for the second time since August of 2016, when the company acquired Jet.com.
The company intends to extend broader authority to Nate Faust, former head of Jet, in an effort to integrate the management of brick-and-mortar and online operations.
In November of 2016, Walmart announced a number of management changes and tasked Faust with leading fulfillment operations for both Jet.com and Walmart.com. Analysts expect the latest changes to Walmart’s executive structure to continue the integration of Jet into its broader business.
Among the other changes described in the company’s announcement, Jeremy King, Walmart’s current CTO of Global E-commerce, will now oversee technology teams for the retailer’s physical stores as well as its ecommerce business.
Michael Bender, COO for E-commerce, will be leaving the company. As will current Chief Information Officer Karenann Terrell, who will be replaced by GE Power executive Clay Johnson come February.
Tony Rogers, CMO of Walmart, will now be responsible for overseeing online marketing efforts as the retailer makes strides to grow its online presence.
Walmart surpassed $14 billion in e-commerce sales last year, but those sales remain sluggish when compared to sales at the retailer’s physical stores.
Will these new changes have serious reverberations in e-commerce—and fresh food sales in general? Stay tuned to AndNowUKnow for further developments.
EUROPE- In the latest criminal activity on the seedy underside of the produce world, six people have been arrested on suspicion of belonging to a criminal group linked to a string of 24 fruit and veg thefts. The string of crimes allegedly has resulted in around 58,422 lbs of poached produce, according to source EuroWeekly.
The suspected produce pillagers, three from Spain and three from Romania, are believed to have participated in the thefts of avocados, mangos, peppers, aubergines, courgettes, and custard apples throughout the Malaga, Granada, and Almeria provinces in Europe.
Investigations by the National Police began in November 2016 after catching seven people stealing 2,401 kilos of avocados from a farm in Velez-Malaga. Due to the nature of the crime, investigators believed the thieves formed a faction of a criminal group, and looked into similar crimes.
Upon discovering a similar investigation being carried out by the Guardia Civil’s ROCA rural crime branch in Motril, the two agencies joined forces to pursue the produce crooks.
The investigation led to Almeria, where the group was discovered to organize thefts of large quantities of fruit, primarily mangos and avocados, from farms along the Andalucian coast.
The primary suspect is a businessperson who made the most of his profession as a wholesaler, boxing up and selling the hijacked fruit mixed in with legal produce of lower quality.
How will criminals use fresh produce in their future plunders? Follow along with AndNowUKnow to keep tabs on the latest.