ROSEMONT, IL - US Foods has announced the commencement of $500 million aggregate principal amount of senior notes by its direct and wholly-owned subsidiary, US Foods, Inc. This announcement comes on the heels of the company’s successful launch of its IPO, last month.
Together with proceeds from US Foods’ IPO borrowings, and under a new senior secured term loan B facility current with the notes’ issuance, the company said that it will use the funds for the following, according to a press release:
- Repay existing secured term loan B facility
- Redeem the outstanding 8.5% senior notes due 2019
- Repay CMBS fixed facility
- Pay related fees and expenses
- Remaining proceeds to be used for other corporate purposes
The company stated the notes will be guaranteed on a senior unsecured basis by the company’s wholly-owned domestic subsidiaries that guarantee its senior secured credit facilities. The notes may not be offered or sold in the U.S. without registration or applicable exemption from Securities Act registration requirements, and applicable state laws.
The notes will be offered to qualified institutional buyers in a private offering that is exempt from the registration requirements of the U.S. Securities Act of 1933, and also to non-U.S. persons outside the U.S. in reliance on Regulation S under the Securities Act.
The offering will be due 2024, but with no assurance that the proposed will be completed.
Stay with AndNowUKnow as we keep a close eye on industry financials and US Foods announcements, and the impact it has on the retail sector.
CINCINNATI, OH - As the retailer continues to grow its portfolio of stores, Kroger’s CEO Rodney McMullen reported a successful spring hiring of 11,500 new employees.
"So many people come here for a job but stay here for a career," McMullen said, according to USA Today Cincinnati, commenting that Kroger has a history of building mutual trust with employees by quickly giving them responsibility. "I remember I was 18 and had keys to close the store on Saturday and open it on Sunday morning."
This responsibility has been entrusted to nearly 12,000 people in the last few months amidst a continuously hungry job market, part of the retailer’s prior promise to add 14,000 new associates to its ranks as it seeks to bolster its capacity.
"There's still a lot of underemployment out there. On the flip side: lower unemployment means the economy is stronger, which is good for everybody," McMullen commented.
And the shopping spree isn’t over yet. McMullen added that we can expect hundreds more in the months to come.
"We're still hiring for summer – if you love people and you love food, it's a fabulous place to work," the CEO stated.
The positions are both full and part time, ranging from department heads, to assistant store managers, to clerks and cashiers. Cincinnati also reported that, should Kroger succeed in filling the announced number of positions, it could stand to become the second-largest U.S. employer.
As we previously reported, Kroger plans to further grow its footprint in geography as well as the employment market, with moves in the works to invest upwards of $4 billion into further growth, including expansions, renovations, and store replacements. Keep checking in with AndNowUKnow as we continue to track this and other growing chains in the retail segment.
OSAKA, JAPAN - I, for one, am a huge fan of both sushi and Star Wars, but could I really take a bite out of BB-8 or his predecessor R2-D2?
In the wake of the revived Star Wars sensation, one sushi chef is bringing a shining light to veggies with an artistic skillset—Okitsugu Kado is sculpting Star Wars characters out of anything from carrots, to cucumbers, to potatoes.
Because who wouldn’t want the veggie platter of any kids party, or kids at heart, to be crafted out of a Master Yoda spud battling some cucumber stormtroopers and Darth Vader?
Kado is a committed fan, according to source Nerdist, who reported that the chef is part of a “Star Wars” community that meets weekly, for whom he started sculpting the figures. The craft falls under traditional Japanese art mukimono, or decorative food garnishing.
While the Star Wars theme was definitely the attention grabber at a recent comic book convention, that is not the only area in which he commits his veggie craft. One of his more recent blog posts says, “I made dragon with a lot of carrots,” which apparently became the healthy garnish to a large sushi cake.
How’s that for making vegetables cool? To see more of Kado's produce-focused talent, visit his blog here.
SALINAS, CA – Increasing distribution and growing areas to its Hydroponic Boston Lettuce program, Tanimura & Antle has announced it both expanded its East Coast program and debuted new operations on the West Coast.
“Hydroponic Boston is just a start for the West Coast! We continue to find new, innovative, and sustainable ways to grow the category and we can’t wait to see how this technology will shape the future of farming,” stated Ryan Mazzuca, Hydroponic Manager, T&A.
According to a press release, this new hydroponic program will enable T&A to distribute Hydroponic Boston Lettuce year-round and nationwide from Salinas, CA, and Yuma, AZ.
“Having a West Coast operation will allow us to provide a nationwide solution for our foodservice and retail partners, and grow only the best products that protected agriculture has to offer,” continued Mazzuca.
T&A stated that its total growing area has expanded to nearly 16.5 acres for its East Coast operations, which will also increase distribution for the company. This expansion brings a new state-of-the-art clear glass greenhouse to grow the lettuce in a protected agricultural environment.
The company said that with this added growing capacity, it looks forward to new explorations into the category as T&A continues growing Hydroponic Boston Lettuce.
Stay with AndNowUKnow as we continue to report on the latest in industry expansions and category announcements.
CALIFORNIA & MEXICO - As temperatures heat up, so shall the melon category it seems. Currently a steady market, SunFed’s VP of Sales N.A., Craig Slate, Country Sweet Produce’s Commodity Sales Manager, Nick Martinez, and Western Veg Pro’s Head of Melon Sales, Dylan Lym, took the time to share with me how the market is shaping up as we head into summer.
"Watermelon supplies and quality have been better this year versus last,” Craig tells me. “Plants and fruit set look very good, indicating excellent fruit quality and sizing going forward.”
As we move into the time of year where consumers become “watermelon hungry,” Craig adds that he expects demand to continue to be strong. “We are moving into the time of year where consumers are hungry for watermelon.”
“Our spring crops are winding down, with our summer crop of MelonHeads® and seedless watermelon production moving into our summer growing region,” Craig says.
Over at Western Veg, Dylan also says that quality is looking good throughout all regions, with expectations for it to remain that way.
“Central Florida and Nogales are beginning to slow down, but Arizona, California, Northern Florida, and Georgia are all starting within the next week, so I expect supply to remain steady through the month of June,” Dylan tells me of what he anticipates in the coming weeks, adding that the biggest challenge as of late is some poor weather around the country.
“Luckily, the country is heating up and we should see an increase in demand over the next couple of weeks,” Dylan says.
This is good news for both the melons and the consumers. Dylan adds that, as weather around the country continues to improve, he expects movement to continue to pick up as we approach the 4th of July.
In California, Country Sweet Produce is seeing consistent volume for organic seedless mini-melons, with early summer weather playing a major factor in producing an exceptional melon for the upcoming holiday.
“The demand for California Watermelons is definitely on the rise for the 4th of July holiday,” Nick shares. “The consumers are excited for the ruby red flesh and sweet flavor that California Watermelons consistently provide year after year.”
When it comes to what the retail side should know about Country Sweet’s program, Nick tells me, “At CSP, we have decades of experience in variety selection, along with the ideal climate for growing the perfect watermelon. Cool springs, warm summers, and the fertile soil of the San Joaquin Valley combined with the Bako Sweet brand make watermelons that the consumers will remember."
Country Sweet currently expects that Organic Regular size and Mini watermelons will start June 20th and go through the week of July 25th, he says. “Volume is good and we expect good movement through the end of July.”
Are you summer-ready? Keep checking in with AndNowUKnow as we continue to report on all current markets through the summer season and beyond.
SAN FRANCISCO, CA - California’s Westlands Water District is coming under fire from federal litigators this month for a $1.4 million loan to one of its executives to purchase a riverfront home. Described as “a little Enron accounting,” according to the Los Angeles Daily News, the loan has earned Westlands “a rare federal penalty” of more than $100,000.
Now unpaid for nine years, the loan was reportedly for the district’s former Deputy General Manager, Jason Peltier. The loan’s value has since risen to $1.57 million with a 0.84 percent annual interest rate.
While this deal is allowed under the agency’s salary rules, such lax loan details raised red flags for federal officials. The real issue here, the Daily News reports, is whether Peltier and Westlands were compliant with set laws that mandate disclosure of the use of public funds.
Under California law, public officials are required to file financial disclosure forms annually, including public loans. Peltier reported that he had begun disclosing the loan in his most recent annual filings, although his reports through 2015 make no mention of the outstanding loan.
“Show me the statute that allows this,” added Peter Detwiler to the news source, retired consultant for the California Senate’s local government finance sector. “Where else could you borrow $1.6 million dollars for 0.84 percent? Who wouldn’t want a real-estate deal like that?”
Terms for the deal initially required Peltier to repay the money within a year, the 2007 housing crash persuaded the district into allowing greater flexibility. Records show Peltier signed repeated one-year loan extensions, and in 2012, he and Westlands revamped their agreement giving him until 2021 to pay off the loan. The filing shows Peltier made monthly payments of about $5,000 from January 2013 to February 2015.
Westlands first became the subject of federal scrutiny this March, when federal regulators imposed a $125,000 penalty. The Securities and Exchange Commission has since concluded that Westlands misled bond investors about its financial condition.
CARPINTERIA, CA – Recognizing one of the company’s newest retail and foodservice products, Hollandia Produce and its Live Gourmet Living Baby Romaine have been nominated for Best New Vegetable Product for United Fresh’s Produce Innovation Award.
“As the leader of innovation for the Living Lettuce and Greens category, Hollandia prides itself on introducing items that are different from what you see in stores today,” stated Brian Cook, Vice President of Sales. “Our latest item, Living Baby Romaine Leaves is completely different than the Romaine Hearts and field Romaine you see currently on the shelf.”
Hollandia stated in a press release, that when compared to other varieties, the younger romaine boasts a longer lasting freshness, richer green hues, a crunchier texture, and sweeter flavor. The Live Gourmet Living Baby Romaine also features the following benefits and characteristics:
- Heartless romaine that contains only dark, nutrient-dense leaves
- Sold with roots intact
- No bitterness
- Rich in Vitamins A, C, and K
- Contains protein
- Non-GMO verified
The product is sold as individual heads packaged in single or two-pack counts, in micro-perforated flow wrap bags. The company said that each head of lettuce is ideal for one or two-person servings, and sold in these “perfect portions” to minimize waste. The Living Baby Romaine also upholds the company’s commitment to using all-natural ingredients.
“The product reduces food waste and provides highly nutritional leaves, sized appropriately for exciting consumer uses like lettuce wraps and salads. We’ve had a wonderful consumer response to this item and look forward to giving the Romaine category a new look,” finished Cook.
As a nominee for the award, Hollandia and the Living Baby Romaine Lettuce will be displayed along with other Produce Innovation Awards at the United Fresh Membership Booth in this year’s upcoming event in Chicago. Atteendees can vote for their favorite innovative product on Tuesday, June 21, and Wednesday, June 22. Winners will be determined by number of total votes received by 2:00 p.m. on Wednesday, with the winners announced an hour later.
Visit Hollandia Produce at booth #1711, and keep your cursor over AndNowUKnow as we continue to update you on United Fresh and other industry news.
WASHINGTON, DC - From its beginnings a graduate thesis for Georgetown University, BlueCart is now a full-functioning ordering platform between suppliers and buyers for the fresh produce industry, and the best part is, it’s free.
As BlueCart Co-Founder Konstantin Zvereff recently told me, the service was born from a need to fix the broken communications channel between suppliers and their buyers.
“We essentially said, let’s develop a white label solution for every single supplier in the industry, regardless of if they are large or small,” Konstantin says, as we talk about the drive behind his and business partner Jagmohan Bansal’s operations. “We want to enable buyers and sellers to communicate through it, and enable sellers to manage and control their own infrastructure.”
Konstantin and his team are more focused on an integrated industry where all placed and received orders are organized in one app, for all involved parties.
“It doesn’t seem groundbreaking to us, but when you talk to a supplier there’s not a singular produce app that’s tailored to the sales rep. So we’re providing new sales opportunities, while increasing efficiency as well,” Konstantin says.
But the benefits go even further, as Konstantin continues to explain. Suppliers using the app have reported leaner inventories, less wasted produce and perishables, and increased reaction times.
But perhaps one of the most interesting aspects of BlueCart, is that it is completely free software. After spending three years working with farmers in rural Africa, Konstantin witnessed first-hand the use of technology as a barrier between small and large suppliers.
This experience found Konstantin wanting to impact the U.S. markets with opportunity. “Technology has to be a tool to enable the market,” asserts Konstantin. “Not to prevent people from entering it. Everyone should have access to that.”
BlueCart develops its services purely from user feedback, and pointedly stays away from spreadsheet buying or price comparisons. The app can be downloaded for iOS, Android, or desktop, and is able to function offline and remotely.
Konstantin said that users of the app only have more integration and sales opportunities to look forward to as the company surges forward, such as a mass messaging feature that would allow for suppliers to send out notifications and potential sales offers to every buyer.
“Features like this let the platform cater to the buyers needs through a centralized platform, whether it’s getting that repeat business, or offloading product,” finishes Konstantin.
Learn more about BlueCart and its suite of supplier-focused softwares here, and keep turning to AndNowUKnow as we report on innovative technology within the industry.
SAN ANTONIO, TX - H-E-B is giving its Central Market store in Houston a $10 million facelift, adding 10,000-square-feet to the location and emphasizing grocery and fresh growth.
The enhancements come with additions to the produce department that will expand it by one third, according to the Houston Chronicle, as well as a larger specialty grocery area offering more international selections and a bigger dairy department.
The changes are not only in line with a rising demand for international flavors, but the first major remodel the location will have seen since its opening 15 years ago.
"This will be an important restaging of the store for the future. It's been 15 years since we've invested significant capital,” Stephen Butt, H-E-B Senior VP of the Central Market Division, told the Houston Chronicle. “We want to stay current with products, but also keep the brand current in a competitive market."
Other additions and modifications in the renovation include:
- Changes to the appearance to “brighten” the interior of the market
- A new atrium at the entrance, complete with vaulted ceilings and skylight
- A single-lane-access checkout area
The store will continue to operate through the construction, which is expected to be finished next spring. Butt called the Houston store one of the strongest of the nine Central Markets in Texas, so it will be interesting to see if this emphasis on fresh spreads to other locations as the retailer continues to make moves to set itself apart from the rest.
GERMANY - What is a Friday without another installment in the epic ongoing battle between cats and cucumbers?
This time the cats are taking over all of grocery and, according to this German-made video, they win; save for the area which the cucumbers are holding down. Watch at your own risk below:
The video is actually a quirky advertisement for low prices at the German supermarket Netto, showcasing that everyone, feline and human, is made happy by markdowns.
While shopping for items you would expect cats to go for, like one in particular who just can’t seem to handle all the options tuna presents and even the option for vegetarian-friendly mice snacks, the produce aisle gets a special spotlight.
And, of course, cucumbers inevitably wreak havoc for the furry shoppers.
View post on imgur.comFeaturing other popular cat-related internet sensations like grumpy-faced cat and jazz paws cat, not a single stereotype was missed.
Enjoy a little Friday amusement and, if you find yourself wondering how the addition of a few cats can help your ad campaign, note that the two-day old video has already garnered nearly 2 million views.