BENTONVILLE, AR – Following Costco’s recent shift in credit card providers, it looks like the consumer competition between the two wholesalers will get a tad tighter over the next few days. Sam’s Club has announced that it will accept all Costco memberships for free for a limited time.
This move follows Costco’s strategic shift in credit card providers from American Express to Citi Visa. As we previously reported, Costco hoped to attract more customers to its membership plan with the increased benefits of the Visa card. According to Fortune, and several other news outlets across the country, the shift in providers has left many Costco members with an unusable credit card at check-out.
"We don't take it lightly, but we are trying to convey to people that this was well planned out," Richard Galanti, CFO at Costco, told Bloomberg. "It is not without its issues, but we are addressing them and working hard to do that."
Sam’s Club, in efforts to increase its own customer base, has announced that all Costco membership cards will be accepted as a Sam’s Club Card from now through July 4. Fortune said that this move is in line with Sam’s Club commitment to bettering its business model by upping its sales growth and improving its products.
Sam’s Club has noted interest in opening stores in higher-income zip codes, and offering gourmet and natural foods to compete in the highly competitive wholesale market. “This is absolutely a reset for our business,” Sam’s Club Chief Executive Officer Rosalind Brewer told Fortune.“We realized that we have the ability to take Sam’s to a higher household income.”
As wholesale and retail markets alike look to streamline their consumer bases, stick with AndNowUKnow in the latest for breaking news.
INDIANAPOLIS, IN - Indianapolis Fruit is wishing a fond farewell to Nick Mascari, the company’s Assistant Director of Sales, New Business Development, who recently accepted the position of Vice President of Sales with All Fresh GPS. During Nick’s time with the company, he has contributed greatly to Indianapolis Fruit's growth and success.
Indianapolis Fruit's President, Greg Corsaro, took some time to tell me about Nick and shares how he has been involved in several areas of the company’s business.
“Nick is the oldest child of one of Indianapolis Fruit’s owners, Mike Mascari, and as so, has served many functions within the company. He has been one of the leaders of our procurement team, with vendor relations being one of his primary responsibilities. Nick has also has been one of the leaders of our sales team, focusing on new business development,” Greg tells me. “As such, he played a vital role in establishing and developing relationships with several of our key suppliers and customers.”
Indianapolis Fruit is a leading regional distributor of fresh fruits and vegetables, floral, and other essential produce items and has been family owned and operated since 1947. It wasn’t until 1997 that the company joined with another Indianapolis produce supplier, Piazza Produce, Inc. and today, they work together to serve both the foodservice and retail industries.
“While I am sad for Indianapolis Fruit, I am happy that Nick is able to pursue such a great opportunity within the industry,” Greg adds.
All Fresh GPS is a one-stop apple growing, packing and shipping solution located in the middle of Michigan apple country. The company’s network of growers spans more than 20,000 acres of prime apple-growing land and are supported by two packing and storage facilities in Western Michigan and a third in Southeast Michigan.
Good luck, Nick, on this next step in your career and the road ahead!
CHARLOTTE, NC – As the company looks to remain a lasting presence in the Dallas-Fort Worth area, Chiquita Brands International has announced that it is buying a refrigerated facility for $19.5 million in Grand Prairie, TX.
"This institutional grade industrial asset combined outstanding functionality with an incredible opportunity for the tenant to expand the building footprint in one of the strongest sub-markets in the country, Dallas-Fort Worth," said Marc Bonilla in a statement. Bonilla is an Executive at Colliers International's Phoenix office, a company office who represented both the buyer and seller in the deal.
The 113,000-square-foot industrial warehouse is already 100 percent occupied by Chiquita Brands and its subsidiary, Fresh Express, as Chiquita previously leased the warehouse for its operations. The companies currently distribute bananas, salads, and snack fruits from the location.
"This was a strategic purchase on behalf of the tenant — Chiquita Brands International Inc.," Bonilla continued, according to the Dallas Business Journal. Bonilla also stated that Chiquita intends to "create the largest premier and sustainable fresh produce platform in the industry," after being previously acquired for $1.27 billion by an affiliate of Cavendish Acquisition Corp.
Chiquita purchased the refrigerated facility from Rose FP LLC, a Chicago-based company. Chiquita currently reports an annual revenue of more than $3 billion, according to the Dallas Business Journal, and employs more than 21,000 people.
AndNowUKnow will continue to have the latest in this sizable announcement by the company, and its impact on the Texas market.
UNITED KINGDOM – As the United Kingdom made headline-breaking news last week with its vote to Leave the European Union, the subsequent debate is still continuing its impact, reaching that of the U.K.'s agricultural industry. Farmers are now hoping that assurances they received prior to the actual vote will still withstand.
Currently, the European Union’s Common Agricultural Policy provides some farmers with half of their annual income from agricultural subsidies, according to the abc.net.au. The actual value varies depending on the current Euro-Pound exchange rate.
"Before the referendum, before the vote, farmers were being told by the Leave campaign, 'don't worry, there will be a replacement, the money we're sending to Brussels will be in a pot and distributed to farmers, the National Health Service, and education,’” stated Belfast-based freelance agriculture reporter, Chris McCullogh.
As some speculate the impact that Brexit could have on the Euro-Pound exchange rate, U.K. farmers are concerned that a drop in subsidies could cause their produce and other offerings to become less competitive than other European producers.
"But since we've known the outcome on Friday, nothing has been announced, at the minute we're having a political meltdown, and we don't know who'll be in power tomorrow," stated McCullogh.
The National Farmers Union (NFU) echoed these concerning speculations in a statement to the Independent. NFU President, Meurig Raymond, stated that U.K. farmers have cause for concern over the impending Brexit as 60 percent of the food consumed is imported, in addition to the value subsidies provided to farmers.
“The average income of a farmer was just over£20,000 in 2014, and 55 percent of that was EU money, so that’s how important that money is,” said Raymond.
Minette Batters, Deputy President of NFU told MailOnline that food prices will have to rise in order to ensure U.K. farms stay in profit, as the region has the highest pay rates in Europe and most farms are already being paid below the cost of production prices already.
“For fruit and vegetables in particular we are going to have to secure higher prices or we risk losing farms and will have to rely on imports,” stated Batters.
NFU President Meurig Raymond calls for British Agricultural Policy after #EUReferendum vote https://t.co/GbwU15lQQF pic.twitter.com/r3vcouc0wf
— NationalFarmersUnion (@NFUtweets) June 24, 2016
George Dunn, CEO of the Tenant Farmers Association, which voted to Stay in the EU, stated that the industry can expect a turbulent period in the near future, but should remain steady.
"We need to have wisdom and diplomacy, so we both have a successful [transition] from the EU, and to create the necessary structures to ensure our industry has the ability to continue to compete in a world market," Dunn stated.
Despite these points for concern, McCullogh continued to speculate to abc.net.au, that there may also be upsides for farmers exiting the EU, as a chance to produce and operate free from what many call excessive regulation and permit requirements as imposed by EU legislature.
"This one size fits all approach is what the farmers are concerned about, that it's not the same rules universally, and there's too much red tape, too much paperwork, and too much hassle from Brussels," finished McCullogh.
According EU rules, the U.K. can have two years to negotiate its exit from the European Union.
As more information is released on Brexit’s impact on U.K. subsidies, tarrifs, and access to the global market, stay with AndNowUKnow for the latest.
CORONA, CA- Veg-Fresh Farms is welcoming a new face to the team with the hiring of 30-year produce veteran Stephen Botnick to expand the company’s sales and distribution of fresh tomatoes, peppers, cucumbers, and chiles to the East Coast. Botnick is located in Veg-Fresh Farms’ Marlboro, New Jersey office.
“As Veg-Fresh Farms' growing acreage increases, we feel that Stephen Botnick is ideal for developing our sales expansion into the east coast,” Adam Cancellieri, a Veg-Fresh Farms partner said. “Stephen’s knowledge in greenhouse growing operations will be instrumental in executing sales programs for our mid west and eastern retailers.”
Before joining Veg-Fresh, Botnick owned his own brokerage firm for 20 years and most recently, according to a press release, has been involved in importing fresh produce from Mexico, Spain, Holland, Canada, Israel, and the Dominican Republic for Greenery North America. Botnick has also worked for Greenery North America in both procurement and sales.
Looking for a competitive edge? Cancellieri noted that the year-round production of over 500 hectares of shade house Roma and grape tomatoes, green bell peppers, cucumber, and chiles can give East Coast retailers a competitive advantage. Veg-Fresh Farms has invested in year-round hothouse production of over 200 hectares of grape tomatoes, tomatoes on the vine, HH colored bell peppers and HH cucumbers, in addition to the shade house grown acreage.
“Our customers are seeing the quality difference and responding positively to our programs, our year-round production provides consistency and reliable quality they can count on," Botnick added. "Adam and I work closely together with our growers to coordinate production schedules and distribution to ensure our programs are meeting the retailers’ needs for accurate communication, supplies, and promotions.”
A third generation family-run agribusiness, Veg-Fresh Farms currently provides fresh produce to national food service chains and national retailers under the Veg-Fresh Farms, Crystal Cove Berry Farms and Good Life Organic™ labels.
Stephen, congrats on the move to Veg-Fresh, and we look forward to what’s to come from the Corona, California-based company.
OHIO and WISCONSIN- With the $866 million acquisition of Roundy’s under its belt, the supermarket giant Kroger is now looking to incorporate some new elements to its Wisconsin Pick ’n Save and Metro Market stores. At the forefront of these details are the stores’ aesthetics, product mix, and pricing.
According to Biz Times, Milwaukee Business News, Kroger is consolidating the Roundy’s brands under the Pick ’n Save and Metro Market banners. Under the acquisition, Kroger inherits 151 stores and 101 pharmacies in new regions, as we previously reported, including Milwaukee, Madison, Northern Wisconsin, under the Pick 'n Save, Copps, and Metro Market banners, plus two Wisconsin-based distribution centers.
“Usually Kroger, after they acquire a store, they integrate their own product in the store; they try to sync their frequent shopper card up with those stores,” grocery industry analyst David Livingston was quoted in the Biz Times, as saying.
James Hyland, Vice President of Corporate Communications and Public Affairs at Roundy’s, also echoed the news noting that among the changes coming down the pipeline this year are store remodels, and pricing and product shifts.
“There’s obviously going to be changes in product that people will see and there will be pricing changes and there may be some changes to the store,” said Hyland. “We have committed to increase our capital spending throughout all of our Wisconsin banners. While we don’t publicly disclose our spending plans, over time our customers will notice changes in merchandising, pricing and store aesthetics.”
Livingston noted that these benefits could trickle down to the consumer.
“It’s going to work out pretty good for the customer because it will give them a little more access to some better deals,” Livingston added.
As for employees, the integration may be a bit more up in the air.
Hyland noted that there are just more than 500 employees at the Roundy’s corporate headquarters in Milwaukee and also has a total of 23,000 employees, with 13,000 of in Wisconsin alone. While Metro Market stores may see some changes this summer, Hyland wouldn’t answer questions about any employment decisions occurring at corporate offices in Milwaukee.
“You’re asking strategic questions and we don’t reveal strategy to the media,” Hyland said. “If I’m Hy-Vee or Festival (Foods) or somebody else, I would love to know what Roundy’s is doing. Like any other industry, those are things we keep close to the vest and we have to do that for competitive reasons.”
On another note Livingston did comment that the point of acquisitions like these, is to eliminate redundancies.
“A lot of those (corporate) functions are already being done in Cincinnati and Roundy’s has a lot of good people, so it wouldn’t surprise me if they made some offers to people to move to Cincinnati,” he said.
This summer Kroger is also renaming the Copps stores to Pick ’n Save in the Fox Valley.
So what about the mix of Kroger vs. Roundy’s brand products as well as national brands? A Roundy’s manager who declined to be named told the Biz Times that the pricing department has been told to cut prices in half on some Roundy’s brand and national brand products to make room for those Kroger branded.
While there may be some product changes, Hyland said, the 120,000-square-foot commissary will remain in operation. Pick ’n Save and Metro Market stores currently carry Roundy’s brand products, which are made at the company’s commissary in Kenosha. Fresh and prepared food is supplied to 150 stores in Wisconsin and Illinois from this facility.
And, as with most price changes, the move is being motivated by the competition from retailers like Meijer and Walmart, Livingston said.
“I could see prices being lowered around 4 percent,” he said.
Livingston also added, “I think they’re going to close probably up to 20 percent (of the Roundy’s stores). They’re just too close to the other stores. It just wouldn’t make sense to keep them open.”
So, what’s next as Kroger looks to diversify across its network of banners? Stay tuned to AndNowUKnow for continued updates.
WASHINGTON, DC – The U.S. Department of Agriculture (USDA) announced that Kelly Brothers Inc., satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA).
The Exeter, CA, company can continue operating in the produce industry upon applying for and being issued a PACA license, according to a recent USDA press release. Christopher J. Kelly was listed as the officer, director, and major stockholder of the business and may now be employed by or affiliated with any PACA licensee.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, the USDA lifts the employment restrictions of the previously named, responsibly connected individuals. The USDA also requires any unlicensed company that fully satisfies all unpaid reparation awards to obtain a license if it continues to operate in the industry.
In the past three years, the USDA resolved approximately 3,700 PACA claims involving more than $66 million. Its experts also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how the USDA continues to support the fruit and vegetable industry.
WAPAKONETA, OH – In a furthered commitment to social responsibility and innovation, Red Sun Farms has announced an investment in VectorBloc housing for its new greenhouse location in Wapakoneta.
“We are setting the bar by creating an environment which creates a sense of community and home. Our plans include an additional unit for our retail partners and customers to stay while visiting on-site, so they are able to gain first hand insight in the total experience of our operation,” said Paul J. Mastronardi, Ohio Greenhouse Operator.
The new housing investment will feature modular designs with 1,134-square-feet of living space, and is to include the following:
- Two living rooms
- Two kitchenettes
- Two bathrooms
- Four bedrooms
Each unit will be limited to eight residents, and will surround a beautiful courtyard for an outdoor living space. Red Sun Farms plans to build a minimum of five housing units on its Wapakoneta property this September, according to a press release.
Red Sun Farms said that it is the first greenhouse grower to offer these state-of-the-art modules, and values a commitment to quality of life with this revolutionary investment.
Keep a close eye on AndNowUKnow as we continue to report on social responsibility within the industry and its impact beyond.
SAN JOAQUIN VALLEY, CA - Legend Produce is transitioning production to the Westside, all while continuing to harvest in the Arizona desert through the second week of July. This transition is unique for Legend Produce, because this means the company will be shipping from both Arizona and California simultaneously for the next few weeks.
“This, by far, is one of the best crops we have seen out of California,” says Barry Zwillinger of Legend Produce.
“We are very fortunate in regards to the soil quality and great weather this year.” Since the domestic season began in May, harvesting has remained fast and furious to keep up with production, Barry continues.
The San Joaquin Valley will be no different, with California's warm weather allowing Legend Produce to launch into early harvesting. In this growing region, the company's fruit continues to be strong, aromatic, and produce what it refers to as an unmatched eating profile.
The Origami, Legend’s exclusive seed variety, is experiencing its highest demand since trials began six years ago. The company believes that as consumers begin to understand quality cantaloupes are available for great prices, they will want more.
Trends continue to reveal that customers want their eating experience to be a priority over price. While Legend continues to grow what it believes to be best tasting cantaloupe, customers are continuing to learn about what growers are capable of producing. They are demanding better quality from retailers through where they spend their money.
“I am excited that we can continue to produce quality melons that provide customers the eating experience they want and deserve,” Barry added.
CHICAGO, IL- At this point we all know that United Fresh is one of the major playing fields for the best and brightest innovations for the produce industry, and thankfully for me, my second visit to the annual show was no exception. From beautiful product debuts, to trending packaging pushes and beyond, here are some of the companies that stood out from the crowd.
Double Diamond Dolce Mix
Vaulting off the success of its Rosso Dolce peppers, it is no surprise that Double Diamond Farms looked to even more innovation in the sweet long pepper category. The Dolce Mix looked gorgeous on the show floor obviously, but the sweetness of the red, yellow, and orange collection is an asset that will undoubtedly marry well with summer grilling recipes, salads, and sauces to come.
CMI’s Cherry Pop-Top Lid
Something I know about my cherry buying is that a beautiful display truly makes all the difference. When you see the idyllic scene of the Columbia River Valley right on the display, it's not hard to get a little dreamy thinking about taking a stroll through those cherry orchards and biting into a few juicy Reds and Rainiers. All Produce Managers have to do in-store is pop the lid open and lock it in place to create an easily impactful display.
Naturipe’s Compostable Organic Top Sealed Blueberries
Compostable and Top Seal have made their way to blueberries! Much to my delight, two of my favorite packaging trends can now be found together in Naturipe’s recently launched blueberry offering. A molded, pulp fiber tray is top sealed, compostable, recyclable, and made from renewable resources—making it the perfect addition to the company’s Cultivate with Care™ program. That’s without even mentioning how lovely the green and natural looking packaging pops against the organic blueberries.
Volm's Volmpack AutoPack
Two of the company’s best machines have joined as one in Volm’s new Volmpack AutoPack. With new features that allow for a fully-automated system, it is a combination of the company’s popular Volmpack Semi-Automatic Bagger and its new Bag Placer, cutting out the need for packers to manually place bags. Reducing the need for manual labor and allowing for filling paper and mesh bags anywhere between 10 and 100 pounds sounds like a match made in heaven to this produce gal.
Hollandia's Live Gourmet Living Baby Romaine Lettuce
There’s nothing quite like biting into the crunchy goodness of dark, vitamin-rich Romaine, and with Hollandia’s latest living lettuce variety, you can do that more easily, and for a longer period of time. Harvested with roots-on for longer lasting freshness and perfectly portioned for one- or two-servings, I don’t have to stress about whether or not my salad will be fresh if I don’t get around to making it for a few days. Less food waste is always a great selling point, but of course it doesn’t hurt that the flavor and crunchiness are out of this world.
If you missed part one of our series, check out Melissa De Leon's favorites from the show by clicking here, and stay tuned to even more content from the show!
Double Diamond CMI Naturipe Farms Volm Companies Hollandia Produce