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SALINAS, CA – Munger Brothers, LLC and Hortifrut S.A., partners of Naturipe Farms, have announced an intent to merge, signing a memorandum of understanding.
“Both are leading berry companies, highly innovative with experienced and knowledgeable management teams who have consistently focused on exceptional customer and consumer experiences,” said Naturipe Farms CEO Dwight Ferguson, in a press release. "This integration will provide greater synergies and capabilities to the entire Naturipe Farms organization; implementing exciting new berry development projects with a focus on proprietary varieties.”
Munger-Hortifrut North America, Inc, resultant company from the merger, will function as a new subsidiary of Hortifrut S.A., and will manage the company’s North American berry operations.
Following the merge, Naturipe and its subsidiaries will have extended its reach to:
- British Columbia
- Washington
- Oregon
- California
- Mexico
- Peru
- Brazil
- Argentina
- Chile
- Europe
- Africa
- Asia
The companies expect the merger to take place during the fourth quarter of 2016.
“With this unique event in the produce industry, we have integrated berry production across the spine of the Pacific coast line from British Columbia in the north to the southern tip of Chile,” said Victor Moller, Founder and Chairman of Hortifrut S.A. “With this merger, Hortifrut S.A. strengthens its position as a leading integrated blueberry grower/distributor globally. Additionally, this will enable us to consolidate our position in other important markets such as Europe and Asia.”
Hortifrut said that this merger is aligned with its initial public offering, as announced in 2012. Moller also stated that the company expects a stable future partnership from the merger, due to the success of past collaborations.
“Our family is thrilled to be merging with Hortifrut and the Moller family, our cultures and values are closely aligned and we are confident this will be a seamless transition,” remarked David Munger, Co-Founder of Munger Brothers, LLC.
Munger Brothers, LLC produces blueberries from a recently expanded 3,000 acres of land, and cited its growing techniques and harvesting technologies for innovations such as its 2011 Ready to Eat blueberries.
Kable Munger, Co-Founder of Munger Brothers, LLC, added “This merger will enable even greater synergies and dedication of resources to implement new projects in North America, as well as expanding upon many excellent opportunities to better serve our customers worldwide.”
Continue to check in with AndNowUKnow for more industry acquisitions and leadership news.
DELANO, CA, McALLEN, TX, & MARTINEZ DE LA TORRE, MX – Wonderful Citrus announced two big citrus acquisitions this morning.
Included in the purchase are Mexico-based Persian lime distributor Kunik Company (I. Kunik), and the operations of B&S Grupo Exportador, S.A. de C.V. (B&S), a major supplier of Persian limes to the worldwide market, according to a press release.
“The addition of this infrastructure and supply of Persian limes provided by these major acquisitions is a perfect complement to the other citrus varieties we already offer,” David Krause, President of Wonderful Citrus, commented. “This will enhance our ability to be the ultimate one-stop shop for citrus for our customers across all channels, and round out Wonderful Citrus’ basket of fresh citrus offerings.”
Wonderful added that I. Kunik’s operations, located in McAllen, Texas, will be renamed “Wonderful Citrus, I. Kunik Division,” becoming a centric location for all Persian lime distribution to the U.S. and Canada by Wonderful Citrus.
Wonderful Citrus also acquired almost 2,000 acres of Persian lime orchards in Mexico within the transaction that, combined with its current acreage, will make it one of the largest lime growers in the country upon the close of the deal.
With the two new additions comes a 65,000-square-foot packing and cold storage facility, as well as established customers developed over decades of operation.
Wonderful Citrus added that this purchase is in line with its commitment to a vertical integration strategy in the Persian lime market.
The company stated that financial terms will not be disclosed, but that grandson of I. Kunik’s Founder, Lawrence Kroman, will continue his role in the business on a consulting basis for at least two years.
ROSEMONT, IL - US Foods has confirmed plans to officially close its Severn, MD, distribution center this June, effectively removing the company’s presence in the state it once called home. The foodservice company will be shifting its operations to other facilities in the region.
According to a report from the Baltimore Sun, this decision comes in part due to declining sales in the Washington, D.C., area and after failing to reach an agreement on concessions with the facility’s unionized workers.
"Moving forward with a closure is always a very difficult decision; however, we need to better align our distribution network so we can more cost-effectively serve all of our customers throughout this important market," John O'Carroll, US Foods' Northeast region President, said in a statement.
According the Baltimore Sun, US Foods was seeking $8 million in annual concessions from its unions, including switching from pensions to a 401(k) and an average pay cut of $5.75 an hour for warehouse workers. These demands were too large to meet, according to Denis Taylor, President of Teamsters Local 355, one of two Teamsters locals that together represent about 180 workers in Severn.
According to the union, US Foods’ plan would amount to a loss of about $40,000 in wages and benefits for a worker each year, with the average worker currently earning about $24 an hour.
The parent company of US Foods filed to go public this February following a fall-through of its Sysco merger plans. The company remains the country's second-largest food service distributor, with $23 billion in sales last year.
TEXAS - Onion season is swinging away, with strong volume still left in the next couple of weeks to meet equally, if not stronger, demand.
“Quality has been excellent, especially recently,” Dante Galeazzi of Frontera Produce tells me, explaining that right now the company is seeing really good demand, especially for the Texas 1015 Sweets. “As far as sizing we are seeing primarily larger onions, jumbos and such.”
Jimmy Bassetti, President of J&D Produce, agreed that the market is in good standing right now, with some extra volume following a surge from Mexico and overlap from Texas.
“The market has been very good and will remain strong for our Texas season. Volume has been steady, with a little glut last week with late onions coming from Mexico and early Texas yielding good.”
But Mexico will finish next week, Jimmy added, meaning J&D expects we’ll see less supplies with a strong demand.
As far as challenges of the season, the tides seem to be in the onions’ favor. Naturally though, Jimmy adds, there is always that x-factor of whether or not nature will continue to cooperate.
“We are always challenged as growers, with Mother Nature leading the way. Onions need dry weather to be harvested and cured and we know what April brings…”
Dante also commented on a shift in the few weeks as the season evolves. But while quantity might fluctuate, quality stands firm. “Quality has been excellent, especially in the last month with temps in the mid 80s to 90s. We couldn’t have asked for better weather, especially in comparison to the last two years.”
Because J&D uses one variety for its sweet program that matures approximately two weeks later than other varieties, it is currently about two weeks behind competitors, Jimmy explains. “We are finishing our Mexico HoneySweets this week and we are 15% into our Texas HoneySweets. We should finish harvesting our Texas Sweet Onion crop by May 7.”
Frontera should also see onions up to Memorial Day, Dante said, so long as Mother Nature continues to cooperate. “Thus far we are optimistic that things will stay steady. The weather should cooperate, and if that is the case we should extend through May.”
Keep checking in with AndNowUKnow as we keep our ears to the dirt for the latest market news in the produce industry.
WACHAU, AUSTRIA - One company is making sure that something other than rain pours this April, promoting apricots in the process.
Family-owned Bainoli’s Apricot Liquer is distilled from apricots that are overripe, pitted, and then mashed, comprising 60% of the final product at the end of the two-year-long process and adding a tasty twist to the stonefruit category.
“Hand-selected apricots are de-stoned, pressed and processed into apricot juice, providing the base product for Bailoni Apricot Liqueur,” the company said in a press release, which described April as going hand-in-hand with apricots for the Wachau, Austria region.
“The apricot blossoming every April is a feast for the eyes for every visitor to the Wachau. The fruits are fully ripened by the end of July, when they are harvested,” the company explained in the release, to which they then become a spirit with 40% alc/vol described as having a full and fruity apricot aroma, exceptionally rich in apricot flavor, according to the website.
And the U.S. can enjoy this clever way to consume produce.
Bailoni Apricot Liqueurs can be found in specialty spirit and wine shops in most key U.S. markets, with more information available at www.hpsepicurean.com.
Cheers!
LOS ANGELES, CA - With Giumarra Nogales currently shipping expanded volumes of its Sonoran watermelon crop, it was a prime opportunity to host Bob Morrissey, Executive Director of the National Watermelon Association, on a tour of the growing, harvesting, and packing operations of its watermelon partner, Videxport.
“Mexico is such a significant part of our watermelon business in the United States, and it was important for me to visit the western side of Mexico,” explained Morrissey. “I consider this trip to be a major part of my educational tour in learning about the industry.”
In order to offer its Mexican watermelon program in both spring and fall, with a move toward 52-week availability, Giumarra has been trialling watermelon crops in several areas of Mexico. According to a press release, the company markets Nature’s Partner®-brand watermelon grown in the Mexican states of Sonora, Baja California Sur, Sinaloa, Colima, and Michoacán. Sonora represents the largest producer of Nature’s Partner watermelons, with more than 50 percent of the total annual crop, the company says.
“We felt it was essential to host Bob [Morrissey], as well as our domestic melon partner, Art Perry of Perry & Sons, in Mexico so they could experience firsthand the sophistication of Videxport’s growing operation and worker welfare programs,” says John Corsaro, CEO of the Giumarra Companies in a statement.
Giumarra’s watermelon partner, Videxport, has been Fair Trade Certified™ by Fair Trade USA as of 2012 and has practiced its own internal social responsibility program since its founding in 1999. The collective care taken by Videxport employees to harvest and pack a high-quality product for the North American market was noted Morrissey, adding that both workers and management took meticulous care of their farm and investment.
“It was the cleanest farm I’ve ever seen from a weed perspective,” added Morrissey. “Videxport represents a major investment in the land and its people. It was impressive to see a family of three generations all working in concert with one another. It’s clear the Videxport family owners are very committed to taking care of their employees, with the Fair Trade program front and center. As a result of the tour and hospitality from the ranch owners, their family is now a welcomed part of our watermelon family.”
Most recently, Videxport’s worker welfare developments include an on-site health care center and improved employee housing. These, along with education, childcare, and counseling, are no-cost for workers. The application of all funding by Fair Trade premiums is voted on by a worker council annually.
VALENCIA, CA – The annual CPMA convention approaches soon from April 12-14, and Sunkist said that it has quite the showcase planned to highlight its seasonal citrus at the trade show next week.
“With so many delicious, nutrient-rich citrus varieties in season now, we are excited to share the season’s best with our trade customers at this year’s CPMA show in Calgary,” said Sunkist’s Director of Communications, Joan Wickham, in a press release.
Visitors to booth 425, will be able to sample the following Sunkist in-season citrus varieties:
- Cara Cara Navel oranges (available through May)
- Gold Nugget variety mandarins
- Navel oranges
- Ojai Pixie tangerines
- Sunkist Smiles® mandarins
- Meyer lemons
“Convenience, flavor and nutrition continue to drive the easy-peel category’s popularity at retail,” said Sunkist Director of Retail Marketing, Julie DeWolf. “Sunkist offers highly customizable point-of-sale materials to help retailers share benefits and usage ideas for citrus, and these are particularly helpful in driving sales of specialty varieties like Gold Nugget variety mandarins and Ojai Pixie tangerines."
CPMA attendees will also be treated to a wide selection of dishes created by Sunkist Chef Jill Davie, said the company, highlighting the varied flavors of Sunkist’s current citrus.
“As the weather gets warmer, consumers are looking for healthy foods to celebrate spring and freshen up their routine," continued Wickham. "Retailers can capitalize on this demand by promoting the distinct flavors, nutrition profiles and versatility of springtime citrus.”
Dishes curated and on display by the Sunkist chef are as follows:
- Orange Chicken with Noodles and Peanut Sauce, using Navel oranges
- Basil Shrimp Cakes with a Sunkist Meyer Lemonaise Sauce and Cucumber Slaw
- Meyer Lemon cocktail with bourbon
Sunkist said that beverages being served at its booth are a juice made from California Star Ruby grapefruit, and the well-recognized iced drink, Meyer Lemon Snow Drop.
In addition to the samples and culinary creations, Sunkist said that it will have a variety of fresh point-of sale materials and merchandising ideas, for both consumers and buyers.
“Consumers are constantly seeking information in the produce department, and the uniqueness and relative newness of these varieties should be communicated to drive purchase intent,” finished DeWolf.
Keep checking in with AndNowUKnow for CPMA and produce coverage in the coming weeks!
AUSTIN, TX - Earlier this week, 365 by Whole Foods Market™ announced the opening date for its highly-anticipated first location, choosing May 25th for its Silver Lake neighborhood of Los Angeles debut. Designed to accompany the Whole Foods brand by bringing fresh, healthy food to a younger, maybe less-affluent demographic, 365 has hopes to streamline and curate its products specifically to maximize that target market.
As reported by the Washington Post, Jeff Turnas, President of 365 by Whole Foods Markets, said he and his team have “looked and turned over every stone to find efficiencies…. We’re not putting as much capital into these stores as we would a traditional Whole Foods.”
This means taking steps to lay out the stores to reduce work and stocking times, and creating cheaper, simply designed displays—all in an effort to keep product pricing down. Even providing fewer product options is on the agenda for these stores that are expected to be only about 30,000-square-feet, compared to the 40,000 to 50,000-square-feet that is typical for a Whole Foods.
“Rather than 50 or 60 olive oils, we’re going to have 10,” Turnas said about his strategy to streamline the company’s stock of products. “But they’re going to be well-represented from around the world and [different] price points.”
Another big key difference is an emphasis on “prepared foods” and foodservice opportunities. The Washingon post reports that Turnas refers to 365’s program as “a little more get-it-yourself, self-serve” than what you see in a traditional Whole Foods. 365 is also introducing a program called “Friends of 365,” in which it will give other retailers or foodservice companies their own independent retail spaces inside of various locations.
“We’ve really dedicated ourselves to partnering with like-minded companies that are doing new and interesting things in their respective field to bring a truly unique shopping experience that complements our thoughtfully curated selection of foods,” Turnas added in a press release.
The first store in Silver Lake will include a 1,245-square-foot vegan fast-casual restaurant called Chloe, a 396-square-foot Allegro Coffee Company bar that will serve craft coffee and beer, and a self-serve kiosk called TeaBot that allows shoppers to mix up to three of 18 different teas and herbal ingredients. Shoppers will also be able to order online and get delivery services through Instacart, the company says.
As Whole Foods plans to open two additional 365 locations in 2016, and another 10 in 2017, the company looks to be trying to take on a significant part of the retail space in the near future. As more information on the developing chain in released, be sure to check back with AndNowUKnow for the latest.
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