TORONTO, ONTARIO - The Canadian wholesale distributor landscape is getting a shake up in 2017, as Costco has plans to open its first Costco Wholesale Business Centre north of the border.
“Sometimes we call it internally the Costco retro–we’re going back to our base, back to our roots,” said Marc-André Bally, Vice-President Business Centre for Costco Wholesale Canada, according to Metronews. “It still remains attractive for somebody that has a big family or somebody that is organizing an event, either a BBQ or a soccer mom.”
The new Toronto location is slated to open in March of 2017, according to Torstar News Service. The format is open to all card carrying Costco members, but will be primarily aimed at small-to-medium business owners such as restaurateurs, lawyers, doctors, gym-owners.
“This could devastate some wholesale distributors,” said Bruce Winder, Partner in Toronto-based Retail Advisors Network, according to the Financial Post.
According to Metronews, the format got its foothold in the U.S. three years ago, and has grown to 14 domestic locations. This will be the first Canadian version. The format features a slightly smaller space than the standard format, without ancillary services, but will still offer approximately the same number of products. Additionally, the Business Center will offer unique brands compared to the regular format, with little overlap.
According to the Costco Business Delivery website, in addition to business supplies, the format offers the following fresh departments:
- Fresh produce
- Fresh meat, poultry, and seafood
This news comes on the heels of a positive Q1 financial report from Costco. Additionally, the company has announced it will open 31 new locations this year, with 16 in the U.S. and 8 in Canada, among other global locations.
SALINAS, CA – Operators seeking healthy and convenient new foodservice options this Winter should take note; Markon’s Ready-Set-Serve® (RSS) Cauli Creations satisfies demand for a versatile, nutrient-packed cauliflower dish that can be used in a variety of creative ways across the menu.
“It’s important we provide our operators with innovative, on-trend produce items that not only meet the front-of-house culinary creations patrons want, but also save backhouse preparation time,” said Sean Walsh, Gordon Food Service’s North American Director of Fruits, Vegetables, and Dairy. “Markon’s Cauli Creations offers 100 percent usable product without sacrificing quality, taste, speed, or safety.”
The company’s Cauli Creations are comprised of rice-like cauliflower crumbles, ready-to-use straight out of the bag. The product offers foodservice operators an easy way to begin creating fresh, healthy, on-trend menu items like cauliflower rice, pizza crust, tortillas, and tots.
“Cauliflower has numerous culinary applications and can be used in hot and cold dishes,” said Chef Bud Andersen with Ben E. Keith Foods, one of Markon’s foodservice members. “Chefs will love that Ready-Set-Serve Cauli Creations is ready to go, provides a consistent product for each use and allows them to focus on creating an outstanding dish instead of prepping the vegetable for use.”
Cauli Creations can even be used as a flour substitute in baked goods, making them an excellent option for operators courting the gluten-free and low carb crowds. According to Nielsen, sixty four percent of consumers are looking to eat healthier, and nutrient-packed cauliflower has been steadily growing in popularity because of its health benefits and extraordinary versatility as a gluten-free, low calorie substitute for traditional ingredients like flour and potatoes.
Serving ideas and more can be found on the company’s product usage video, and an introduction video produced by Markon gives a brief introduction to the way in which Cauli Creations are made.
Cauli Creations are harvested year-round in Arizona and California and available to operators through Markon’s foodservice members:
- Ben E. Keith Foods
- Gordon Food Service
- Maines Paper & Food Service
- Nicholas & Company
- Reinhart Foodservice
- Shamrock Foods Company
For more on innovative foodservice products, stay tuned to AndNowUKnow.
DENVER, CO – In response to the challenges facing its business, Chipotle is going back to its roots and appointing a single CEO to lead its operations. The company announced that Steve Ells will remain as Chipotle CEO, while its current Co-CEO Monty Moran will step down from the position.
“Chipotle is based on a very simple idea: We start with great ingredients, prepare them using classic cooking techniques, and serve them in a way that allows people to get exactly what they want,” said Ells. “Even though it’s a simple idea, operations have become over-complicated. I’m very much looking forward to relentlessly focusing on ensuring an excellent guest experience, removing unnecessary complexity from our operations, championing innovation, and pursuing our mission of making better food accessible to more people.”
Ells has served as Chipotle CEO since 1993 when he first founded the company. According to The Motley Fool, Ells brought Moran on as Co-CEO in 2009 to share the position from his previous position of General Counsel. As Co-CEO, Moran oversaw store operations and helped to develop Chipotle’s corporate counsel. Moran will be leaving the company when he steps down in early 2017.
In addition to remaining as the company’s CEO, Ells will also serve as Chairman. In his now solo position, Ells will reportedly focus on pursuing employee incentives that tie more closely to the guest experience, as stated in a press release. The company stated that Ells will also re-envision the Restaurateur program for its General Managers to become more accessible and guest-focused.
“Steve founded Chipotle more than 23 years ago with a powerful vision to use great ingredients prepared skillfully by hand, but served very fast,” said Neil Flanzraich, Lead Independent Director of Chipotle’s board. “This approach has proven to be a very successful formula, but as the company grew, operations became more complicated and less consistent. Given the ongoing challenges facing the company, the board felt strongly that it was best for Steve to resume leadership of the company going forward. This will ensure that his high standards for the guest experience and his unyielding commitment to the company’s mission are top priorities.”
During a conference call after the initial announcement, Ells stated that the keystone to his new plans as sole CEO revolve around simplifying everything that is done in-store to improve customer experiences.
“I’d also like to thank Monty for his extraordinary contributions to Chipotle over the years. Monty inspired us with his vision for an enlightened people culture, and I wish him the best as he retires from the company,” Ells said.
Chipotle is not the first company in recent months to streamline its CEO operations for the sake of increased operations. Whole Foods recently announced that its Co-CEO structure would be again returning to a sole leader.
As Chipotle looks to reinvent its operations for further growth, AndNowUKnow will keep you apprised of further strategies.
ELGIN, MN - After several years of growing demand for Honeybear Brand’s new Pazazz apples, the company has announced it’s partnering with several retailers to bring the sensation to store shelves earlier and in more volume than ever before. Just in time for the holiday party rush, the variety will meet early demand from Hy-Vee, Loblaw, and Wegman’s shoppers by shipping one month early.
“Pazazz is in year three of commercial production, and is already showing incredible potential for our retail partners,” explained Don Roper, Vice President Sales and Marketing for Honeybear Brands. “It's smashed every retail goal we set, and thanks to the natural maturing of the crop this season, as well as the increase in volume of fruit produced by our family-owned farms across the United States and Canada, we’re able to bring Pazazz to market even earlier than usual. This is great news for grocery store shoppers and lovers of fresh holiday treats alike.”
Grown in Minnesota, Wisconsin, Washington, New York, and Nova Scotia, Pazazz will arrive in stores as soon as the second week of December, and be available through February while supplies last. According to a press release, the launch will be supported by:
- In-store demonstrations (second week in January)
- Integrated marketing and promotions campaign
- In-store POS materials
- Targeted advertising
- Social media marketing
- Communications to consumers
“We’re thrilled to be able to partner with industry-leading retailers like Hy-Vee, Wegmans, and Loblaw stores in this exclusive early sneak peek at Pazazz this year,” said Roper. “We’re convinced it will help drive extra holiday sales of a unique, new featured item as well as give us a real indication of what we can expect at retail during the busy January and February sales season when Pazazz is available at more retailers nationwide.”
Honeybear Brands refers to Pazazz as the star of its varietal development program, which now has close to 100 varieties in various stages of pre-commercial growing, testing, and production. Consumers can expect the family-grown variety to roll out nationally in 2018, and is currently being tested with growing partners in the southern hemisphere to potentially increase Pazazz’s in-season availability to retailers and their customers in the United States and Canada.
To learn more about the company and its landmark variety, visit www.PazazzApple.com and www.honeybearbrands.com.
LAREDO, TX - It’s not every day a new produce logistics company comes on the scene, but Elite Border Logistics (EBL) has not only been able to make a splash out of its Lardeo, Texas base, but also turn that into a steady stream of growth.
Arriving to the industry in 2011, Founder Juan Jose De Leon began his company by brokering international freight out of a one-man office. Today, less than six years later, the company has grown to 15 employees who broker thousands of loads a year.
EBL has located its offices in the prime strategic location of Laredo, Texas, housing itself with its sister company, Continental Forwarding Services, a 30-year veteran of the customs brokerage industry. The company’s facilities boast a wide array of high-tech features, including:
- Ample cold storage
- 24 temperature controlled doors
- In-house US and Mexican Customs Brokers
- An official USDA Inspection Point
De Leon tells me that the facility allows the company to specialize in door-to-door international freight, tying together the U.S., Mexico, and Canada, and offering services no other freight broker can match. The company’s unique set up allows benefits such as crossdocking, long-term temperature controlled storage, and the creation of Customs documents.
New this year is the introduction of another EBL sister company, EBT Logistics Inc. The new company was formed to expand the available services to clients, adding a fleet of 12 trucks and drivers dedicated to moving refrigerated and dry freight throughout the United States and, utilizing trailer interchange with partner companies, direct deliveries in Mexico.
And as EBL keeps its sights on even more growth come 2017, AndNowUKnow will keep the industry updated on the latest.
IRWINDALE, CA - What is a company without those who keep the wheels turning?
With that frame of mind, Ready Pac Foods was happy to honor top performing employees it refers to as “frontline associates,” from all over the nation at its third annual Circle of Excellence (COE) event.
“Recognition of our people is a key component of the culture here at Ready Pac Foods and I look forward to this event every year,” said Tony Sarsam, Chief Executive Officer of Ready Pac Foods. “I firmly believe that if we take care of our Associates, they will take care of our business.”
Among this year’s winners are Frontline Coordinators Esperanza Robles, a 31-year veteran, and Prabal Dewanjee, the only “three-peat” winner of the program.
The COE furthers the company’s commitment to safe, innovative, and positive work environment, according to a press release. Started in 2013, it recognizes frontline associates who’ve been ranked in the top one percent for performance the previous year.
“The best part of the COE event is meeting with, and learning from, my peers from different plant locations,” said Dewanjee. “While our backgrounds and personal interests may differ, we all take pride in our work and it means a lot to get the recognition from the company’s leaders.”
Those nominated are put up for the award by an internal committee, evaluating metrics in the following categories:
- Efficiency
- Safety
- Quality
- Process improvement
- Demonstrating Ready Pac Food’s Core Values
This year’s event was held at the Disneyland Resort in Anaheim, California. During that time, everyone participated in team-building activities, business sessions, scavenger hunts, and an award banquet. Each winner was also invited to spend time at the park and bring a guest to share in the festivities.
In total, thirty-five associates from Ready Pac Foods locations in New Jersey, Georgia, and California, gathered at the Anaheim resort. Congratulations to the most recent recipients of this honor.
CINCINNATI, OH - Effective January 1, 2017, one of the largest distributors of fresh produce in the U.S. will have a new President and Chief Executive Officer.
Beginning the first of next year, Brian Kocher will take over as President and CEO for the Castellini Group of Companies. As the new President and CEO, Kocher will focus on continued growth, operational efficiencies, and creating customer value.
“We are excited to have Brian transition into the role of President and CEO,” said Bob Castellini, Chairman of Castellini Group. “Brian is a natural leader who has earned the respect of his team, his colleagues and the produce industry. Brian will lead the company as we continue to pursue new business opportunities and innovate to serve our customers’ needs.”
Bill Schuler, who has served as Castellini Group’s President and CEO for the past 17 years, and logged over 31 years in total with the company, is retiring—though he will continue to serve as an executive advisor during the transition.
“We are grateful to Bill Schuler for his leadership, commitment, and dedication to the Castellini Group of Companies and its many associates, customers and supply partners,” said Castellini. “Under Bill’s leadership the Castellini Group of Companies has enjoyed significant growth especially in terms of expanding our distribution reach and growing our fresh-cut processing and logistics businesses."
"Bill has made many contributions to the produce industry over the past 30 years including serving as Chairman of the Produce Marketing Association in 2010,” he continued, according to a recent release.
Kocher had previously served as CEO of Chiquita Brands International before joining Castellini Group as COO in April of 2015. Kocher had also held various positions at Chiquita including COO, CFO, President of North America Operations, and President of Europe and the Middle East Operations. Kocher has also served as Chairman of the United Fresh Produce Association.
We congratulate Kocher on his new position and Schuler on his retirement and extraordinary body of work. For more developments in the produce industry, check in with AndNowUKnow.
HOUSTON, TX - Sysco has been making some big moves lately, and the public and shareholders seem to agree. With shares last month rising a notable 10.7%, analysts are pinpointing the company’s stock as indicative of its fiscal results as well as what may be to come.
The 10.7% rise, as reported by S&P Global Market Intelligence, came following the company’s posted Q1 financial report where Sysco surpassed Wall Street’s original prediction of $13.9 billion in revenue and $0.58 in EPS. Fox Business reported that Sysco beat out investors’ expectations through the following key points:
- 33% rise to its profits
- 11% jump in sales revenue to $14 billion
- Adjust earnings increased 29% to $0.67 per share
Sysco’s $3.1 billion acquisition of Brakes Group earlier in 2016 is also being credited for the stock jump, as the new business helped boost Sysco’s revenue numbers. Additionally, Sysco’s margin gains helped incite the surge in adjusted earnings, which in part boosted the company’s stock.
Since its stock boosted, Sysco has still been on the rise. As of today, at 12:47 EST, Sysco’s shares are still up 0.43% to $55.86 per share, with a price to earning ratio of 30.78.
Some analysts, Fox Business continued to report, are also speculating that these gains are just a sign of larger movement to come. These analysts stated that market predictors expect the restaurant business to increase with prospective legislation pushing tax cuts and fiscal stimulus that may be on the horizon as administrations prepare to shift. As the push for restaurants increase, thus would Sysco’s services.
Additionally, this shift in administrations to the Republican sector may see the revival of a Sysco and US Foods merger.
Will Sysco continue to beat out expectations? AndNowUKnow will have the latest as the financial reports roll in.
CAMARILLO, CA - With healthy options trending this holiday season, and consumers increasingly drawn to fruit- and veggie-filled diets, Houweling’s Signature Selection Sweetoms Premium Grape Tomatoes are a perfect way to add color and sweetness to holiday offerings.
Retailers looking to appeal to health-conscious consumers should take note of the company’s attractive 1 dry pint clamshells.
“We’ve had tremendous positive response from consumers about our Sweetoms, who rave about the sweet flavor and quality our locally-grown products provide,” said Brand Manager Lindsay Martinez. “The standard-size, 1 dry pint Diamond Clamshell with black and gold label really stands out on the shelf, creating opportunity for impulse purchases that lead to repeat purchases.”
Lindsay emphasized the importance of local growing and traceability to increasingly-conscientious consumers: “We identify on pack where the product is grown with our “CA Grown,” “Utah Grown,” or “BC Grown” license plate to focus on the locally grown advantage because it is important for consumers to know where their food comes from.”
Additionally, Houweling’s offers point of sale material focusing on local growing and in-store sampling opportunities to draw consumers looking for holiday snacks or easy on-the-go options during the busy season.
“Bright red Sweetoms work with many holiday-themed dishes. During this busy time of year, our BLT Skewers are as easy as assembling a piece of thick cooked bacon with one Sweetom and a leaf of baby lettuce for simple, delicious appetizer,” added Martinez. “Our Signature Selection pack declares the specific seed variety, Sweetelle, which ensures consumers who seek our Sweetoms that they will consistently enjoy the same premium eating experience time and again.”
In addition to 1 dry pint clamshells, Sweetoms are available in 2 lb. clamshells and top seal bowls. Houweling’s greenhouse farms are located in California, Utah, and British Columbia, and the company’s tomatoes are available year-round.
For more on products that can drive sales of fresh produce, stay tuned to AndNowUKnow.
WASHINGTON, DC - Under regulations of the Perishable Agricultural Commodities Act (PACA), Doud & Associates Inc., operating in Santa Maria, California, posted a $75,000 surety bond.
The surety bond was posted with the U.S. Department of Agriculture (USDA) to employ Juan Cardenas, previously named in a PACA action.
According to a recent USDA press release, Juan Cardenas was the only officer and a stockholder of The Lexy Group, Santa Maria, California, a company which failed to pay reparation awards issued against it under the PACA.
Any PACA licensee wishing to employ individuals who have failed to pay a reparation award, or have been subject to a USDA disciplinary action, must post a USDA-approved surety bond.
USDA will hold the $75,000 bond for four years, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct its business according to PACA rules.
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 the 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. These are just two examples of how USDA continues to support the fruit and vegetable industry.