UNITED STATES - Results are in for America’s favorite grocery store. At least according to Customer insights firm Market Force Information. The new set of grocery rankings polled more than 10,000 people. The rankings were based on a composite loyalty index with criteria that included satisfaction with the food quality, checkout speed, value and customer service. The top spot went to Wegmans, with Publix as a close second and Trader Joe’s (the previous top spot holder) at third.
Wegmans took the crown with a loyalty rating of 76 percent, according to an article by CNBC, with Publix scoring a 75 percent rating and Trader Joe's with 73 percent. Coming in at the fourth spot was Hy-Vee Food Stores with a loyalty score of 68 percent.
These recent survey results mark a change for Trader Joe’s, who has held the top spot for four years.
We often report on the competitive grocery industry as retailers strive to address the growing needs and changing behaviors of the consumer. Demographics evolve the palates of families and communities and the new generation of shoppers straddle a demand for more accessible food options and new technologies.
How do you keep up? It would probably be a good idea to ask a couple questions of these top chains. On the other side of the coin and particularly noticeable this year is the stat that one in five consumers reported that they would not recommend their grocer to a friend or even a colleague. On the other hand, only 4.3 percent of customers considered switching grocers, according to Market Force Information.
Cheryl Flink, Chief Strategy Officer of Market Force, told CNBC "When you look at the top brands, I do want to be clear that the top three — Wegmans, Publix, Trader Joe's — they are very, very competitive.”
She went on to tell CNBC, “There is hardly any difference in between the three of them."
I’d be curious to know what the industry thinks.
Flink added, "Trader Joe's has not gone backwards on service," explaining that competitors have improved on this issue.
Flink attributes Wegmans move to the top spot as testament to the retailers success from offering specialty items and brands to its quick cash-out shopping experience.
One of the biggest trends we’ve noted in recent years is a trend towards prepared meals at retail and, Flink notes, that some two-thirds of respondents reported that they purchase prepared foods at least once a month. Also, 19 percent making these purchases once per week.
"The grocers are putting time and effort in this idea of ready-to-eat," Flink said, explaining that consumers are seeking convenience, an alternative for dining out, and food quality.
Coming up the ranks in terms of competition are fresh concepts like Blue Apron, offering ready-to-cook items, Flink adds.
Congratulations to the top runners for this year’s customer insights survey from Market Force Information. Stay tuned as we bring you more on the competitive grocery industry.
CANADA - Prince Edward Island is the “Idaho of Canada” when it comes to the country’s potato growing, Mid Isle Farms’ Jennifer Harris, Director of Sales and Marketing for the company, tells me as she explains the region’s stake in the company’s category.
In the middle of it, Mid Isle Farms has its eye on further growth and evolution.
“There's a lot going on, and CPMA is a great gateway into the western region where demand for PEI potatoes has risen as many eastern consumers have gone there for work,” Jennifer tells me, explaining that the company actually has an entirely new brand launching in the fall.
The FoodTrust brand, she explains, will reflect the company’s concern for, and loyalty to, the consumer, environment, and community.
“We recently acquired the Food Trust company and its focus has been on sustainability and working closer with the grower- something we believe in."
In addition to the successful offerings at retail within the last few years which have helped bolster customer loyalty, such as the Yukon Russet and Vales Sovereign, Jennifer tells me that Mid Isle Farms has also added to its technological capabilities in order to offer a safer and more secure product.
“We had experienced what is, in our opinion, food terrorism towards the PEI potato industry. We decided, instead of being victims of these attacks, we would be leaders and we installed a state-of-the-art X-ray machine to monitor all products and guarantee safety.”
Jennifer adds that the company is well-positioned for further growth, “We want to go above and beyond for our customers, and we look forward to showing that to those we meet at CPMA.”
Keep checking in with AndNowUKnow as we continue to maintain a pulse on the growth of all North American produce companies and their impact on the industry.
CALIFORNIA - It has been a couple days since we shared the news about the recent California land grab by Metropolitan Water District of Southern California for $175 million worth of real estate in Northern California’s Sacramento-San Joaquin Delta. And the conversation around this purchase is continuing to remain a heated dialogue.
As we previously reported, Metropolitan shared Monday that it has inked a 103-page contract to purchase five agricultural Delta islands from Delta Wetlands Properties. Delta landowners and Northern California officials are none too happy.
According to an article by KQED, even within Metropolitan, the $175 million purchase remains controversial. Two of Metropolitan’s own members - Los Angeles and San Diego – have opposed the sale, as well as Santa Monica. Metropolitan’s executive board is slated to revisit the contract later this month, at a special meeting called for April 26th, as a result of a debate at a meeting in March.
The Delta land is being sold to Metropolitan by Zurich American, a subsidiary of a Swiss insurance company, in a deal that ecompasses 20,000 acres, including Bacon Island, Bouldin Island, Webb Tract, most of Holland Tract and a piece of Chipps Island.
“Metropolitan Water District is positioning itself so that it can have as much water as it wants to export in a watershed that is actually in decline because of climate change,” Barbara Barrigan-Parrilla, Executive Director of Restore the Delta was cited by KQED as saying.
While Jeff Kightlinger, Metropolitan’s General Manager, denies this.
“It’s not a water grab there, in the sense of getting more.” Knightlinger says, “our water supply depends on a healthy functioning delta ecosystem, and we don’t have that.”
Metropolitan is also the major financial backer of the California WaterFix which is Gov. Jerry Brown’s $15.5 billion plan to re-engineer the Delta’s plumbing system by building a pair of underground tunnels.
Purchasing the land could help get those tunnels built, Kightlinger acknowledges, which could “head off” potential eminent domain fights over access to the route. Knightlinger does note that the deal wouldn’t dramatically increase the populous South’s rights to Northern California water.
“It actually just makes it safer and more effective to move that water,” he is quoted in the article as saying.
Zurich American, the current owner, has sought to use some of the land for water storage and marketing. While Metropolitan notes water storage isn’t under consideration.
It is suggested that the land could possibly serve as “staging areas” for the Governor’s WaterFix program, and storage for construction materials and the tunnels could wriggle under Bacon and Bouldin Islands. From where Kightlinger stands, he notes that it’s preferable to an agricultural use.
“Every year there is further farming causing these islands to shrink and subside, and as they subside they become a threat to the entire state of California,” he says.
Delta interests disagree. The article notes that Stockton lawyers George V. Hermann and Dante Nomellini say that restrictions on land use in existing covenants may be able to block Metropolitan’s plans.
Nomellini represents neighbors to the island in the Central Delta Water Agency and says that Zurich American inked agreements in 2013, restricting activity on the land which included conditions that could keep the tunnels out of the area. Nomellini suggests those signed agreements should be honored fully.
“What I want is, I want the new buyer to sign our settlement agreement,” Nomellini says.
At this point in time, according to KQED, Metropolitan has not called Hermann or Nomellini to discuss the issues. For Kightlinger, since Southern California’s land use plans in the Delta don’t include reservoirs, the agreements that arose from a dispute related to reservoirs do not apply.
Those representing Delta interests as well as elected officials from Northern California are continuing to protest passionately.
AndNowUKnow will continue to keep you updated on this situations and others, as things progress.
VANCOUVER, B.C. – Against the backdrop of the 2016 CPMA Convention in Calgary, Oppy announced the promotion of Steve Young as its Sales Director for Canada. Young will oversee its Vancouver, Calgary, and Toronto sales teams and lead the company’s Canadian sales strategy.
Young has been with Oppy since 2008, first as a Sales Rep in Vancouver and later as the Sales Manager in Calgary. He will return to Vancouver in August to assume his new role in the company.
“Steve built and led a high-performing team while in Calgary,” said Walt Breeden, Vice President of Canadian Sales, adding “We’re looking forward to having him back in Vancouver where he can contribute even more to our overall Canadian strategy.”
Young expressed his excitement to spearhead Oppy’s growth initiatives. “Oppy’s Canadian business has been growing at a remarkable pace,” Young said in a statement. “I’m looking forward to supporting that momentum and discovering new opportunities for our growers and their products in the market.”
Young is a member of the CPMA Board, and the 2014 recipient of the CPMA’s Mary Fitzgerald Award honoring young leaders in the industry.
Keep track of the industry's leadership changes on AndNowUKnow.
CHELAN, WA - In a new partnership move, Chelan Fresh announced that it will begin to distribute apples and pears from longtime Washington grower, Crane and Crane. Chelan will begin marketing Crane and Crane’s traditional varieties in fall of this year.
Tom Riggan, CEO of Chelan Fresh, commented in a press release, “We have been close friends with Crane and Crane for many years, and we know the outstanding quality of their fruit and their people. Together we can deliver additional volume to our customers who demand excellence."
Crane and Crane is a family-owned business that has been growing in the Northern Washington area for near to 100 years. The Crane family said that they hope to leverage Chelan’s extensive distribution network to increase its market presence.
“We have chosen to join forces in marketing our fruit with our longtime neighbors in the northern district of Washington State through Chelan Fresh,” said Rachel Crane Sullivan, the fifth-generation family President of Crane and Crane. “Our high-elevation location allows Crane and Crane to produce firm, high-quality fruit that fits well in the Chelan Fresh program.”
In addition to apple and pear distribution through Chelan Fresh, Crane and Crane will continue to market its ENZA club varities through channels that are exclusive to them.
You can continue to harvest the best of produce business news with AndNowUKnow.
SALINAS, CA - As always, the market is constantly keeping fresh produce industry members across the board on their toes. And as the transition between the desert growing regions to Salinas, California is wrapping up, that is definitely so. Broccoli is a category that has definitely been in flux in recent months and as shippers tell me, the market could possibly firm up in the next couple weeks but recent rains could also bring on more volumes. I spoke with Ippolito and Tanimura & Antle who gave me the 411 on the recent conditions.
Ippolito’s Broccoli Manager, Bill Vargas, tells me, “We were split between Yuma and Salinas last week on broccoli as we wrapped up and Yuma had been heavier than Salinas on production in terms of supplies. Demand this week will improve as more orders will be transitioning north for us. With our current contract base, orders will transition to Salinas starting this week and will give us a solid base to work from, and should allow pricing to improve as we move forward.”
For Ippolito, sizing was a little irregular the first week, but Ippolito is reporting that while production can be up and down, the team sees that improving as the season gets going for Salinas.
Bill talks to me about the interesting dynamic between the two regions and how it essentially affects the day-to-day sales models, “Demand has been steady here in Salinas this week, Yuma had the better demand due to lighter representation of product in the desert. It has allowed us to firm up our pricing when we have had to be more flexible in Salinas to attract customers.”
Growers tell us that another thing that may affect the market could be that the Central San Joaquin Valley has been finishing up with possible lighter supplies coming out of Santa Maria as well.
But as it always goes, growers have to see how the week plays out and what Mother Nature has in store next.
Janelle Seebeck Commodity Manager for Tanimura & Antle tells me that the company has been back in Salinas 100% for a few weeks now and finished Yuma pretty abruptly and moved right to Salinas without much of an overlap.
“We did gap on broccoli for a few days,” Janelle notes. “Broccoli supply is right on point for the next couple weeks for us with growing demand and with no large dips expected as of now. But, things can always change.”
When I ask her if she has noted any challenges thus far in terms of weather, Janelle tells me that T&A doesn’t anticipate any issues right now but reiterates that things can truly change on the span of a week.
“Our broccoli guys are troopers and the rain doesn't affect them much as far as harvesting goes. If anything, it may bring on a bit more product,” Janelle says. “So, look for promotional opportunities up ahead.”
With Salinas production underway for the spring and summer months, stay tuned to AndNowUKnow as we follow the categories in California.
IDAHO FALLS, ID- The Vidalia® onion pack date is quickly approaching and Potandon Produce is gearing up for a promising 2016 season. The company debuted a new look for its packaging last season for its vertical full-panel bag, and the change has been a key enhancement in driving Potandon’s growth.
“This year’s crop is one of the best looking crops we have seen,” said Chris Woo, Onion Sales Manager. Potandon is expecting the season’s Vidalia onion crop to be about three times larger than last year, according to a press release.
One of the most significant contributors to Potandon’s program is the bagged onion segment which drives sales through the strength of the Green Giant™ brand and in the marketplace. Potandon is the exclusive marketing agent for the Green Giant™ brand of fresh potatoes and onions.
“The Green Giant™ logo and eye-catching graphics make this onion bag an instant favorite with retailers, especially those who already have Green Giant™ potato program,” said Ralph Schwartz, Vice President of Marketing, Sales, & Innovation.
Potandon will start shipping on the official start date for the season, Monday April 25th. These consumer bags are currently available in 2#, 3#, 4#, or 5# packs. Stickered jumbo and colossal Vidalia® onions are available in 40# cartons and 50# sacks.
Stay tuned to AndNowUKnow as the Vidalia onion season heats up.
CALGARY – The CPMA 2016 convention kicked off this week, and Thomas Fresh has a treat in store for attendees by the unveiling of its new brand identity at the show.
Thomas Fresh said that the new brand logo more clearly reflects the company’s relationships between food, business partners, and consumers that it has fostered since the 1950s.
“We have a long tradition of trusting relationships with producers, vendors and retailers, and we wanted a look and feel that better told that story,” said Thomas Fresh CEO, Roy Hinchey, in a press release.
Thomas Fresh’s new imagery was developed in partnership with Tugboat, a Vancouver-based creative agency. “We’re starting with a new logo, color palette and tagline, and have grand plans for our presence and identity to springboard off of it in the coming year,” said Erin Power, Director of Marketing for Thomas Fresh.
Hinchey, who is also the chairman of this year’s CPMA convention, added “Anyone who knows us knows that that’s exactly who we are. When our peers see the new Thomas Fresh logo at the 2016 CPMA show, they’ll immediately recognize us in it.”
Those at the CPMA conference this week can check out Thomas Fresh’s new look at booth 1003.
Check out more fresh new looks in the produce industry with AndNowUKnow.
WASHINGTON, D.C. – The U.S. Department of Agriculture (USDA) has cited Ricardo Bombella of Goodyear, Ariz., for failing to comply with employment sanctions under the Perishable Agricultural Commodities Act (PACA).
According to a USDA press release, the USDA and Ricardo Bombella entered into a consent decision and order finding that Bombella violated section 8(b) of PACA by being employed by a PACA licensee between April 2012 and April 2014 while under employment sanctions. As a result of the consent decision and order, Ricardo Bombella’s employment sanction was extended for a one-year period beginning April 6, 2016.
In a discussion with Mr. Bombella, he told AndNowUKnow that he could still conduct business in the produce industry as long as he did not ship more than 2,000 lbs. per day of produce during this time period.
In the past three years, the USDA resolved approximately 3,700 PACA claims involving more than $66 million. Their 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.
DUBLIN, OH – Wendy’s is heating up its menu options with a new product, starring recent retail trendsetter, the ghost pepper. Utilizing the spicy kick of a ghost pepper, the flavor is now featured in both Wendy’s Jalapeño Fresco Spicy Chicken Sandwich and Ghost Pepper Fries.
“Both are great examples of what makes Wendy’s so Deliciously Different,” said Kurt Kane, Wendy's Chief Concept & Marketing Officer, in a press release. “Both of these products are game changers because the heat and spice are intense, while the flavor combination is truly craveable. It’s products like these that you can only get (and will keep getting) at Wendy’s.”
While the Jalapeño Fresco Spicy Chicken Sandwich boasts at least 10 different heated contributors, the ghost pepper, reputably known as one of the world’s hottest peppers, is the star flavor which gives this item its kick. The sandwich’s taste is also complimented by jalapeños, paprika, black pepper, and cayenne to name a few choice seasonings.
Wendy’s Ghost Pepper Fries are topped with a layer of cheese sauce, jalapeños, and a special ghost pepper sauce. The company said that consumers can now take on each item in tandem if they feel brave enough to take on the chili pepper combination.
The release of Wendy’s ghost pepper invasion is accompanied by the following marketing campaigns:
- Digital campaign spotlighting humerous reactions to spicy taste reactions
- TV advertising
- Focus on the “yaysayer” consumer, or rather, those who can handle the spice
Wendy’s said that the Jalapeño Fresco Spicy Chicken Sandwich and Ghost Pepper Fries will be available for a limited time only.
Keep kickin with AndKnowUNow for innovative produce uses, and trending industry items.