AUSTIN, TX - As the rumor mill continues to turn with regard to a Whole Foods' potential buyer, skeptics are wondering if Co-Founder John Mackey will even entertain prospective suitors as he looks to protect the artisan, organic legacy he has built for Whole Foods.

As we previously reported, word on the street in recent months suggests that Kroger is one buyer eyeing the company. Maybe they have already tried and failed? Maybe not.

With that in mind, we reached out to sources close to ANUK to ask the question: Will Whole Foods sell?

To begin responding to the question, Whole Foods has begun actively consolidating shippers, and minimizing its local sourcing program, as industry friends recently shared with us; a move that makes Whole Foods more attractive to potential buyers like Kroger. Some see the match-up as too fractured of a fit to work well in the long-haul. So, what does this mean?

Marriage Made in Heaven? Or Not?

In a nutshell, it only makes sense for certain national chains to acquire a more artisan-driven retailer, like Whole Foods. The philosophies must align.

Mackey may be looking for a company that shares in the same model and vision that he built. Whole Foods demands a different focus than most national retailers, we are told, and you have to appreciate the cost Whole Foods is willing to incur to keep its mission alive.

Others echo this sentiment as well, noting that Whole Foods is in the business of raising awareness, promoting planet generosity, and paying it forward. Other companies have different perspectives and are in the business of retail more than social consciousness–where Mackey grounds his vision for Whole Foods.

In addition, some sources shared with us that some prospective suitors are too aggressive, and Mackey’s end-game is essentially to protect his legacy and founding principles. Yet others argue that some large national chains have successfully purchased other banners, over the years, and have managed to keep their differentiating attributes within their respective markets and/or channels, while at the same time benefiting from their system and economies of scale.

Another interesting thought to come to the table from some of our industry friends is that Amazon would not be a too far-fetched candidate for Whole Foods. A company like Amazon can embrace what Whole Foods has done with its mission and values, potentially more so than other retailers who are profit-driven. So many large scale retailers are trying to find ways to increase profits by driving prices down and decreasing service levels, and Amazon could surface as an option simply because it is different from the pack.

If Whole Foods wants to talk legacy, then it may be beneficial for them to have that conversation with a less traditional retail corporation, sources add. Amazon wants to expand its footprint in grocery, the company is progressive, tech-driven, and has the kind of money to invest in a move like this.

En Garde – Poison Pill

While some people think that a Kroger acquisition of Whole Foods is imminent, others are saying that Mackey could use a poison pill in his back pocket if pushed by a large national train that does not share the same values. Now that he has full control of the company with the elimination of its current leadership structure, and with whispers of a mass exodus from the company ensuing, the future looks more uncertain than ever.

So, what is a poison pill? It is a mechanism used by public companies to prevent hostile takeovers. A company targeted for a takeover utilizes the poison pill strategy to make shares of the company’s stock look unattractive or less desirable to the acquiring firm.

According to Investopedia, there are two types of poison pills:

1. A “flip-in” permits shareholders, except for the acquirer, to purchase additional shares at a discount. This provides investors with instantaneous profits. Using this type of poison pill also dilutes shares held by the acquiring company, making the takeover attempt more expensive and more difficult.
2. A “flip-over” enables stockholders to purchase the acquirer’s shares after the merger at a discounted rate. For example, a shareholder may gain the right to buy the stock of its acquirer, in subsequent mergers, at a two-for-one rate.

While it is obvious to many players that Whole Foods is being prepped for sale, it might be some time before this all shakes out.

So, what’s next as the Whole Foods’ rumor mill plays out? We will keep you posted here at AndNowUKnow.

Whole Foods

BATAVIA, IL - Aldi US has announced that it’s extending its reach with more offerings in fresh produce, organics, and bolstering its online fresh resources.

“At Aldi, we want our customers to know we are dedicated to making living healthier not only attainable, but affordable, too,” said Aldi's Director of Marketing, Liz Ruggles. “In addition to providing high-quality groceries at the lowest possible prices, we developed these new resources to help our shoppers achieve their goals in health and wellness.”

The additions launch this month and are slated to continue through March, according to a press release, with fresh produce expansions including:

• Organic bananas
• Organic apples
• Organic tomatoes
• Organic avocados
• Organic salad mixes

The company offering customers fresh online resources at ALDI.us/hellohealthy to help them say “hello, healthy” in the New Year, visitors can find new resources each week, including weekly meal plans, new recipes, and more for multiple eating styles.

“It’s the time of year when everyone is thinking about making a fresh start and resolving to eat better, and I’m so excited that Aldi is offering these resources to help introduce better-for-you foods, whether it’s a new fruit or vegetable, or a smarter way of preparing a favorite recipe,” said Sally Kuzemchak, Registered Dietitian, Author and Aldi Advisory Council Member. “And, many people don’t realize that Aldi carries several dietitian-recommended products–at a fraction of the cost compared to other grocery retailers.”

This change includes a number of modifications to be a healthier food provider, such as removal of added MSG, certified synthetic colors, and other additives, and new product lines.

Aldi operates more than 1,600 stores in 35 states, serving more than 36 million customers each month.

Aldi US

SANTA PAULA, CA - Limoneira closed out 2016 on a high note, with revenue increases and records to show for it as the company kicks off a new year.

"Fiscal 2016 was a record year in terms of operating results for our company as we continued to execute on our long-term growth strategy,” said Harold Edwards, President and Chief Executive Officer, in a press release. “In fiscal 2016, we sold lemons to approximately 170 U.S. and international customers and we expect this to grow in fiscal 2017 as we continue to service new markets and new customers in our existing markets. As an example, earlier this year, we announced the formation of Limoneira South Africa, which underscores our goal to become a leading global, year-round citrus agribusiness. We are working with business partners in South Africa, Chile, Argentina, and Mexico, and Limoneira plans to manage the marketing and sales function from locally sourced lemons."

Highlights for the quarter overall included:

• Revenue increased 37% to $19.5 million, compared to revenue of $14.2 million in the fourth quarter of the previous fiscal year.
• EBITDA was $2.0 million in the fourth quarter of fiscal year 2016 compared to $2.4 million in the same period of fiscal year 2015.
• Agribusiness revenue was $18.2 million, compared to $12.9 million in the fourth quarter last year, primarily due to stronger lemon sales.
• Fourth quarter fiscal year 2015 net income includes a $5.0 million gain associated with the sale of 140,000 shares of Calavo Growers, Inc. common stock and a $0.9 million gain on the sale of the Company's Wilson Ranch.

"In addition to very strong agribusiness performance in fiscal 2016, this year also highlighted our ability to strategically monetize investments and non-core assets, including the sale of Calavo stock and the sale of a conservation easement on a portion of one our Ventura County ranches, which combined generated approximately $4.4 million of gain in the year,” Edwards said.

Alex Teague, Senior Vice President, expressed optimism for 2017 based off of operations that opened in the last year.

"In June, we announced that we are adding oranges and specialty citrus varieties to our 'One World of Citrus' model,” Teague said. “We began our direct selling program for lemons six years ago and have been very pleased with its success. We are excited to have our oranges and other citrus varieties marketed in Limoneira cartons. As our lemon business grows, our customers recognize the quality and consistency they receive with Limoneira lemons, and we are seeing increased demand from our customers for other citrus varieties."

So, what’s to come for Limoneira in the year ahead?

“We continue to make progress expanding our agribusiness. As we begin fiscal year 2017, we expect to benefit from the investments we made in fiscal 2016 including our more efficient packing house,” Edwards concluded. “We are very well positioned to capitalize on opportunities to expand our acreage of productive land, as well as driving organic growth."

You can access details in a company conference call through the Investor Relations section of its website at www.limoneira.com. Limoneira noted that the webcast will be archived and accessible on the same website for 30 days following the call, which took place yesterday, January 10. 

Limoneira

HENRICO COUNTY, VA – A recent trucking spill has tossed lettuce across Interstate 295 and left one driver in hot water. A New York man has been charged after a tractor trailer he drove containing lettuce overturned in a two vehicle accident. 

According to local news affiliate CBS 6, the accident occurred Sunday morning, January 8, just before 8:15 a.m. when a 2003 Freightliner tractor trailer containing 30,000 lbs of lettuce attempted to pass a 2014 Chevrolet Silverado. The tractor trailer, traveling northbound in the center lane, began to fishtail as the vehicle accelerated in the move, and lost control.

The lettuce truck collided with the Chevrolet and careened off the road before striking a guard rail, bouncing back into the road and overturning, spilling its contents into the road.

No one was injured in the accident, but cleanup of the leafy greens, or road salad–if you will, lasted until 5:00 p.m.

The driver of the tractor trailer, identified by local news source NBC 12, as a 32-year-old New York man, was charged with reckless driving and defective equipment as a result of his truck having bald tires.

For more on tossed greens, jumbled fruits, logistics snafus, and all things produce, check in with us at AndNowUKnow.

BENTONVILLE, AR - Walmart is planning more job cuts before the end of January, according to a report from the Wall Street Journal, where people familiar with the matter reveal that hundreds of jobs are on the chopping block. As reported by the paper, the job cuts will mainly affect headquarters and regional personnel that support stores. Walmart has yet to publicly claim the validity of the report.

“As we’ve previously shared, we are always looking for ways to operate more efficiently and effectively,” Randy Hargrove, Senior Director of Corporate Communications tells news source Consumerist. “While we continually look at our corporate structure, we have not made any announcements. Like any organization, we make decisions based upon what’s best for our business and the customers we serve.”

The source reports that Walmart’s human resources department is a primary target of the company’s cuts, citing senior executives’ claims that the department could be more efficient or have their duties handled by outside consultants. 

This announcement comes on the heels of last September's revelation that Walmart would cut around 7,000 office jobs in areas including accounting and invoicing in its U.S. stores. As we’ve previously reported, the job cuts followed the company's plans to invest in a $2.7 billion incentive plan to increase productivity and customer satisfaction, having awarded about $200 million in second-quarter bonuses to 932,000 hourly store employees. 

Are these cuts signaling a greater change in the retail giant’s overall plans for 2017? Time will tell, and with it, so will AndNowUKnow.

Walmart

LOS ANGELES, CA - Bringing a mouthful of juicy flavor to the colder winter months, the Giumarra Companies has announced the entrance of its Nature’s Partner Mystic Treat™ grapes. Hailing from Chile, the first arrivals of the variety are available to retailers.

“We have enjoyed success with our niche Mystic Treat offering for several years,” stated Craig Uchizono, V.P. Southern Hemisphere for the Giumarra Companies. “We are happy to see increased volumes this season. The timing is really special for us due to the proximity of Valentine’s Day. We feel that promotional opportunities abound.” 

The Mystic Treat is an exceptionally sweet and crisp variety that is specifically grown for its flavor, according to a press release. The variety has medium to large-sized berries and is a memorable eating experience out of hand or when paired with a variety of cheeses, nuts, and beverages.

“At a timeframe when consumers are still gathering for social events, Mystic Treat makes an excellent addition to the table,” said Kellee Harris, Western Region Business Manager for Giumarra. “Given the popularity of grapes with consumers, we’re excited to offer them a special new eating experience within the category.” 

Mystic Treat is sold in fixed weight 2 lb clamshells, with eight units per master case. Retailers can take advantage of the variety’s marketing opportunities through its colorful label, which communicates both the look and feel of a premium product. 

Giumarra is also offering a variety of POS materials which were specifically designed to promote the unique and memorable flavor of Mystic Treat grapes at store level.

Nature’s Partner Mystic Treat-branded grapes are available now through March.

Giumarra Companies

SACRAMENTO, CA - Want to win $100? We've hidden a surprise in the latest issue of The Snack, and you can win a $100 gift card if you're the first to find it!

LOS ALAMITOS, CA- As the President and CEO of Frieda’s Specialty Produce, Karen Caplan can tell you a thing or two about tapping into so-called trends.

Frieda’s has an impressive track record of bringing previously unknown items to household ubiquity over the course of its 55-year existence. The company boasts a compelling portfolio, having carved out categories in everything from kiwifruit, to tropical fruits, to Stokes Purple® sweet potatoes.

Propelling the company to its current success, the multi-generational Caplan family seems to have a preternatural knack for understanding what will compel consumers to flock to an item, and giving retailers the right tools to sell it. For this reason, many in the industry might consider Karen a produce prophet who knows how to stay ahead of the curve.

But, while most companies want to be the first to predict what is going to be hot this year, Karen is here to tell you why that might be a bit short-sighted.

Q: How would you define a trend versus a movement?

Karen Caplan: Some trends are like fads, are fickle, and may die out by the end of the year. Some longer lasting trends suffer a backlash like kale has. Luckily, I believe that putting more vegetables on our plates is not just a flash in the pan, but our new way of living.

More specifically, I would equate a true trend to the beginning of an ocean wave. It starts low and slow and gains momentum. As the wave swells…it becomes a movement. An example would be Meatless Monday, which started as a campaign to reduce meat consumption and save water. But really, it was indicative of the underlying trend of eating vegan or vegetarian. Now, nobody blinks an eye if you go vegetarian once a week, and the movement has become the norm. Root-to-stem cooking really started with the trend of chefs wanting to make their vegetable dishes look more rustic and to be unique. That trend ended up merging with the movement around reducing food waste.

Q: Could you give an example of what backlash against a trend looks like?

KC: When kale was a unique menu item, or made popular for juicing, consumers welcomed and seemed “surprised” to see kale featured. But when kale shows up at your local fast food restaurant (e.g. Chick-fil-A, Wendy’s, or McDonald’s), consumers react with kale backlash! “Kale…really?” When Kale became ubiquitous, consumers got kale fatigue.  

Q: Why has vegetable-centric cooking and eating suddenly become a trend?

KC: Actually, it isn’t “all of a sudden.” Like all other food trends, the veg-centric trend has been gradually simmering for years. It has just now reached the boiling point.

A food or cuisine reaches “trend” status at the confluence of media attention, chef attention, and supermarket or CPG attention. But with fresh produce, a trend rarely happens overnight. Take kiwifruit, for example—it took 18 years to trend. Although our company, Frieda’s Specialty Produce, brought it to the U.S. from New Zealand in 1962, it wasn’t until the 1980s that it really took off, with the help of Wolfgang Puck and Alice Waters, who put it on their menus.

I have witnessed the ebb and flow of produce trends over the past 55 years. It took kale almost 20 years to achieve its celebrity status, starting in 1996 with a poem in the Los Angeles Times called “Oh, Kale.” Turmeric is another “gradually, then suddenly” trend example. Frieda’s has been marketing fresh turmeric root since 2003, and only in the past year or so has it reached a tipping point as the next superfood, appearing everywhere from Google’s Food Trends Report to Parade Magazine.

This year alone, Forbes picked turmeric as the item to watch. Baum + Whiteman called out vegetarian and vegan “butchery.” Pinterest noted the rise in jackfruit pins over the course of 2016. Whole Foods pointed to purple food, particularly purple vegetables like cauliflower, asparagus, and Stokes Purple® sweet potatoes.

Interestingly, back in 2013, Frieda’s declared it “the year of purple produce.” So, you might say we were a bit ahead of our time.

Q: What are the reasons behind this produce-centric movement?

KC: Almost ten years ago, Michael Pollan told us to “Eat food. Not too much. Mostly plants.” Today we are finally heeding his call with veg-centric eating.

Here are three reasons for this focus:

1. Vegetables are Photogenic

Health benefits aside, we eat with our eyes first, and our eyes are attracted to vibrant colors. Food Instagrammers are using fresh, colorful fruits and vegetables in their compositions, because—let’s face it—produce is just prettier to look at than meat or grain. Brilliant purple sweet potatoes dotted with bright red pomegranate arils. A crudité plate featuring gorgeously-red beet hummus and a rainbow variety of radishes like Easter egg and purple ninja. In this social media world we live in now, one great photo can boost a trend.

2. Vegetables Make You Look Good

We’re an image-conscious culture of instant gratification. Sure, we can preach about how eating more fruits and vegetables will make us live better longer. But honestly, we are not all eating healthy to extend our lives—we’re doing it for the now. When you eat well, you feel well. And when you feel better, you look better. So, we want to look good now, to feel good now. We’re going to eat fruits and vegetables now to look good in our selfies.  

Just look at the recent report from NPD Group: Millennials and Gen Zs are driving growth in fruit and vegetable consumption. They probably do it because they are supposed to, but they also eat more veggies because they want to look good—whether in their swimsuits, or on Snapchat.

3. Vegetables Are Comfort Food

Speaking of eating well and feeling good, comfort food is still a popular trend although the focus has shifted to include more fruits and vegetables. Spiralized vegetables are replacing pasta for a lighter, yet still comforting, dish. Vegetable-loaded soups are more satisfying than sipping bone broth by itself. And more people are discovering that vegetables like hard squash, celery root, Sunchokes®, and sweet potatoes are hearty, comforting, and filling.

Q: How do you keep your "ear to the ground" on produce trends and movements?

KC: Read, read, read! Everyone at our company is empowered to share what they notice. And it’s not always about ingredients. For example, we noticed the popularity of “bowls” as main dish meals a few years ago, and began to integrate this into our recipe development. Funny thing, though, anyone remember the fast casual restaurant Yoshinoya from 30 years ago? That’s probably when the “bowl” trend first started!

Q: How can retailers and restaurateurs utilize this information?

KC: It really depends on the philosophy of the enterprise. If a retailer or restaurateur creates a culture that respects and appreciates innovation and creativity, then they can more easily utilize this information and make it actionable.

So, as we move through the next year with a focal point of fresh, keep your eyes towards the horizon.

And if you take a page from Karen's book, be sure to set your sights a little farther.

Frieda's Specialty Produce

SOQUEL, CA & CASTLE ROCK, CO - SureHarvest Inc.—a prominent sustainability management systems provider for specialty crops—has been acquired by Where Food Comes From Inc. (WFCF)—one of the largest independent verifiers of food production practices in North America.

“SureHarvest has built a strong portfolio of solutions for the agri-food chain, and this deal takes us one step closer to being a one-stop-shop for growers who are facing increased pressures to streamline operations, and improve productivity, resource efficiency and profitability, while better meeting the needs of customers and consumers,” said John Saunders, Chairman and CEO of WFCF. “Together, SureHarvest and Where Food Comes From bring even more industry knowledge, expertise and resources than either company on its own.”

In a company press release, WFCF noted that the acquisition expands and diversifies the company’s reach with high-value specialty crops and programs certifying winegrapes, almonds, hazelnuts, strawberries, mushrooms, cut flowers, leafy greens, and other fresh produce.

“Where Food Comes From and SureHarvest both operate from the premise that consumers want and will continue to demand information about where food comes from, how food is grown and by whom,” said SureHarvest President and CEO Dr. Jeff Dlott. “In addition, both aim to create a smarter, more transparent food system by using technology to create greater connectivity between suppliers, buyers and consumers.”

Dlott also noted that the deal will allow more growers to tell their sustainability and production stories: “We also believe producers, packers, distributors and retailers can be better managers of natural resources and even achieve competitive differentiation through verification and traceability initiatives. Through this new deal, we can help even more agri-food suppliers tell their stories.”

SureHarvest employs a variety of sustainability and farming Management Information Systems (MIS) solutions, certification, compliance management and professional services including its flagship Sustainability Management Information System.

SureHarvest also brings to the deal five issued patents, eight 2016 patent allowances, and three pending applications that include devices, methods, and systems to capture farm level data, record chain of custody, and automatically certify or communicate agricultural production and product information to consumers. The company has identified 240 potential licensees in the ag industry for these devices, methods, and systems.

“Food producers from beef to almonds to wine grapes are challenged to meet ever higher standards of stewardship in managing natural resources in support of their supply chains, operations and corporate responsibility initiatives. Together, SureHarvest and WFCF can further provide much-needed solutions,” said Leann Saunders, WFCF President.

For more exciting developments in the fresh produce industry, stay tuned to AndNowUKnow

Where Food Comes From SureHarvest

NORTHERN CALIFORNIA - While the rains continue for Northern California, mudslides and flooding have not been the only product of the uncharacteristically wet weather.

Our reservoirs have also seen a significant boost to water content, according to Mercury News, with upwards of 350 billion gallons accounted for as of the last round of storms.

We are now seeing the upstart of yet another pattern. As we reported yesterday, Northern California’s coastal ranges are expected to receive up to a foot of cumulative rainfall, and between two and eight inches of rain are expected throughout the inland Sacramento and San Joaquin Valleys, as the result of what weather experts described as “torrential” rainfall.

While there have been dangerous conditions, the news for the record drought is optimistic.

The report noted that the Sierra Nevada snowpack is currently at 70 percent of historic average, a 126 percent leap from this time of the year, despite weekend concerns that the weather would remove recent progress.

The 154 largest reservoirs tracked by the state Department of Water Resources added 1.1 million acre feet of water from Jan. 1 to Monday, longtime state hydrologist Maury Roos told Mercury News, boosting their capacity to 97 percent of historic average.

California’s second-largest reservoir, Oroville, has risen 35 feet since New Year’s Day. It has added 250,000 acre-feet of water over last weekend, now standing at 64 percent full–102 percent of historic average.

“It’s excellent news,” said Roos. “I don’t make the decision on the official drought, but from the Bay Area north we are in good shape for this time of the season.”

Roos, however, did hold on to caution, stating that it’s still early yet and precipitation patterns could dry up at any time.

The drought does not officially come to a close until Governor Jerry Brown gives the word, and while the northern half of the state is seeing significant water additions, the southern half’s reservoirs are still low, particularly Santa Barbara and surrounding areas.

The report noted that Governor Brown should soon update the drought declaration to include recent regional differences.

AndNowUKnow will continue to report from our home at the state’s capital on this and all other issues affecting the produce industry.