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PROVIDENCE, RI – United Natural Foods Inc (UNFI) announced today that it has acquired all remaining stock of family-owned and operated distributor, Nor-Cal Produce Inc, assets valued at approximately $68.6 million.
“We are excited to expand the breadth of our fresh perimeter product assortment and distribution network with the acquisition of Nor-Cal,” said Steven Spinner, UNFI’s President and Chief Executive Officer. “This acquisition further illustrates UNFI’s growth into fresh and we look forward to working with Todd Achondo, President of Nor-Cal, who will remain at the company in a leadership role, and their entire team.”
In addition to the stock UNFI’s purchase also includes some real estate, the company said in a press release. Nor-Cal’s annual net sales, which ended on February 29, were valued at approximately $151 million.
“The entire Nor-Cal team is excited to be a part of UNFI. We look forward to working together to grow the combined company and better serve our customers nationwide,” stated Mr. Achondo.
UNFI said that it financed the purchase price with available cash and borrowings under its revolving credit facility. The company expects the acquisition to be accreditve towards its 2017 earnings, and that the financial move was geared specifically towards increasing its national presence in produce.
Continue to check in with AndNowUKnow for more acquisition and expansion announcements for the industry.
United Natural Foods Inc Nor-Cal Produce Inc
UNITED KINGDOM - It’s no secret that Tesco has been trying to cut costs in recent years, reporting a $9.6 billion loss in 2014, and recently being part of rumors the chain may cut 39,000 jobs over the next three years. Now, new information has come to light that Tesco plans to cut out a large chunk of locations from its health-focused Nutricentre branch, as well as exiting from its Giraffe restaurant chain in its entirety.
According to news source Retail Week, the struggling grocer will close 12 of its Nutricentre stores and 11 of its concession stand off shoots. This will reportedly affect as many as 137 of the chain’s employees, with 79 floor staff members, 26 head office employees, and 7 concession staff members, and several other miscellaneous employees.
This is on top of reports from several news sources that Tesco will be eliminating its entire Giraffe restaurant chain. As explained by Sky News, private equity firms and other bidders are have been in private talks with Tesco about buying Giraffe, which operates about 60 sites across the United Kingdom.
Acquired by Tesco under Philip Clarke’s leadership as CEO in 2013 for £50 million, the chain was a way of “diversifying” and filling “redundant space” in its stores, Sky News reports. Dave Lewis, the CEO that took Clarke’s vacated position, made it a point to vacate businesses and brands which were unprofitable or distracted from Tesco's core U.K. business.
As of now, the sale of Giraffe is not yet a certainty, but could occur in the next several months, sources say.
As we previously reported, under Lewis’ leadership the company has approved the sale of Tesco's South Korean branch Homeplus for $6 billion U.S., but recently called off an auction of Dunnhumby, its data analytics business, after it failed to attract strong enough offers.
For more on Tesco’s developing turnaround plan as information is divulged, keep reading AndNowUKnow.
LEAMINGTON, ON – With a tight market across the bell pepper category in recent months, NatureFresh™ is looking to its upcoming crops to bring a some relief to retailers. The company is currently in its 4th week of Canadian bell pepper production.
“The winter market has been a challenge in many respects this year,” Matt Quiring, Key Account Manager, said. “Production has been limited across North America and Europe due to inclement weather. With new crops being picked this past month, it’s a breathe of fresh air after mediocre quality, limited availability, and high prices. Ontario grown bell peppers are a welcome sight at retail for retailers and consumers alike.”
He adds that the demand for bell peppers is reaching an all-time high and NatureFresh™ is well established to ship to all regions throughout the mid-west and Canada, according to a press release. In addition, the company increased its organic bell pepper acreage by 100% this season to meet the increasing demand for organics in both the U.S. and Canada.
“The organics market is a unique segment that is focused on consistency from a quality and availability perspective”, Ray Wowryk, Director of Business Development, says. The significant increase in acreage this season was prompted the success of the NatureFresh organic program.
NatureFresh™ successfully launched its operations at its Delta, OH greenhouse this winter and is bringing OhioRed Tomatoes year-round to customers as well. NatureFresh’s social media channels have been seeing plenty of conversation and inquiries from consumers wondering about adding locally grown bell peppers to either of the company’s facilities in USA or Canada.
The company participated in a research study, in partnership with the Ontario Farm Innovation Program (OFIP), to evaluate the effectiveness of supplemental light from overhead High Pressure Sodium (HPS) light bulbs & LED bulbs at plant level. While still ongoing, NatureFresh™ continues to research innovative technologies to be able to provide local, year-round greenhouse vegetable production to customers and consumers.
Stay tuned for more updates on the bell pepper market and the companies that are striving to meet the growing demand.
DOVER, DE – This summer will see watermelons in a more advocatory role than usual, following Melon 1 Inc’s new partnership with the Delaware Office of Highway Safety to promote safe driving.
"We're proud to be partnering with the Delaware Office of Highway Safety to promote safe driving. We hope to help remind all customers that buckling up and driving sober protects drivers, passengers, pedestrians and our farmers in Delaware," said Melon 1 in a press release.
The “Protect Your Melon” campaign will center around a label promotion between Delaware grocery stores and the Delaware Office of Safety, said Melon 1 in a press release. The watermelon safety campaign schedule is as follows:
- May to June: retailers to carry watermelons bearing “Protect Your Melon” and #BuckleUp stickers
- July to September: DUI awareness campaign
Delaware Office of Highway Safety and Melon 1 also plan to carry the promotion theme through a partnership with JD Motorsports in the NASCAR Xfinity Series. Both logos will be featured on cars participating in the event, during the following races:
- Dover Race on Saturday, May 14: sponsors of No. 4 JD Motorsports Chevrolet Camaro, driven by Ross Chastain.
- Drive Sober 200 Race on Saturday, October 1
Melon 1 said that it is offering the free UPC barcode labels to any watermelon distributors currently interested in joining the “Protect Your Melon” campaign for Delaware Retailers. Those wishing to utilize its stickers, said the company, can contact Tony Priscaro with JD Motorsports at 864-488-1270.
Stay tuned to AndNowUKnow for your public safety and watermelon needs.
ROSEMONT, IL- In another move as the company looks to move forward its IPO, US Foods Holding Corp. has filed an amended Form S-1 with the U.S. Securities and Exchange Commission as of March 31, 2016. According to Reuters, the company has officially named KKR as underwriter to its IPO. And Renaissance Capital notes that US Foods Holding reported financial results in that amendment filed with the SEC today.
US Foods Holding reported $23.1 billion in sales for the 53 weeks which ended January 2, 2016 and has been growing its efficiency and productivity with recent moves like the acquisition of New England-based wholesale distributor, Cara Donna Provision Co., and family-owned foodservice distributor Dierks Waukesha. US Foods also decided to double the size of its 123,000-square-foot facility in Fife, Washington.
As of now, US Foods has not revealed any pricing details for the initial public offering price per share, according to the SEC document. US Foods intends to list its common stock on The New York Stock Exchange (the “NYSE”) under the symbol “USFD.”
As we previously reported US Foods’ parent company, US Foods Holding Corp., filed a proposal for an initial public offering (IPO) on Feb. 9th. While the number of shares and the price range for the offering had not been determined, Fortune had reported that US Foods planned to raise $100 million, and that this number is likely to increase as the filing moves forward.
This latest filing also notes that, "After the completion of this offering, affiliates of Clayton, Dubilier & Rice, LLC and Kohlberg Kravis Roberts & Co. L.P., acting as a group, will continue to own a majority of the voting power of all outstanding shares of our common stock. As a result, we will be a 'controlled company' pursuant to the corporate governance standards of the NYSE."
Stay tuned to AndNowUKnow as the news around US Foods’ IPO continues to develop.
CALIFORNIA - The California avocado season is really ramping up, with growers reporting lots of quality pickings to meet the season’s demand.
Dave Patterson, Sales for Freska Produce, is confident in the continued selection of California avocados and shares that Freska is focusing immediately on its harvest before moving on to avocado retail. “We’re really looking forward to our first season,” he says. “There’s lots of supply, though movement is a little slow because more Mexican fruit came in within the past two weeks. But the California market will catch up soon.”
Dave emphasizes that the avocado market is stable now on larger fruit, with California avocados coming in a few dollars more than what might still overlap from Mexico. “Quality is very good, in both Mexico and California,” details Dave. “No issues or spotting issues have been seen yet.”
West Pak Avocado is also seeing strong supply from their grower base, Senior Vice President of Sales and Marketing Doug Meyer tells me, with good demand to meet the supply.
“The California season is definitely under way, and while many may still think of Cinco de Mayo as the traditional kick off for fresh California avocados, we have many of our core customers engaged already, and are encouraging more to ramp up in April leading into Cinco,” Doug says, adding that great quality is pushing even more desire from consumers.
“What is really helping with the early season push for California avocados is consumers are getting great quality avocados that are eating well and giving them a good experience.”
West Pak is seeing good results with ripening their California fruit, which Doug added is helping to increase sales velocity and contributing to positive consumer experiences.
To help promote their California Avocado Season campaign, says Doug, “We launched a digital campaign, The Grove Rush 2016 (#CAAvoGold), which celebrates the California season by engaging with our customers and audience with all things California Avocado-related from industry news to heritage and behind the scenes. We are also connecting very well with our valued customers through LinkedIn, so make sure to find us there."
With more clearly in store for the state’s season as we head into Cinco de Mayo, Mother’s Day, and beyond, keep checking in with AndNowUKnow.
UNITED STATES - The spring citrus season is well underway, and with it, a wide array of varieties coming into promotable volumes. And with demand for the category reaching new highs, now is the perfect time for retailers to start their push.
“So far this season, Mother Nature has given us a great hand when it comes to citrus—flavor has been fantastic,” Joan Wickham, Director of Communications for Sunkist tells me. “This year’s crop is large, with promotable volumes, and quality has been very good across our portfolio, with excellent color.”
Currently the company is in the middle of the Navel and Cara Cara Navel orange season, with Blood oranges also in peak production. Joan also notes that the California Star Ruby grapefruit season is just getting started and quality is fantastic.
“With temperatures rising, consumers are beginning to focus on eating healthier and weight management – providing a lot of promotional opportunities for grapefruit,” Joan reports, adding that demand for and sales of citrus this season are on the rise, and Sunkist is thrilled to help retailers capitalize on high demand for peak season citrus.
For Duda Farm Fresh Foods, Paul Huckabay, Western Citrus Sales Manager, tells me the company is currently packing and shipping navel oranges, mandarins, lemons, and Meyer lemons.
With El Niño bringing wetter-than-usual weather to California this season, the company hasn’t seen many problems with varieties, Paul says, and volumes are up across all of Duda’s citrus product lines.
“The rains we received this year were great, and the only real challenges were some harvest delays due to the wet weather,” he adds. “With lemons, the warmer coastal temperatures have brought on color and maturity a bit earlier than normal, which could lead to supply shortages this summer.”
While Navel orange pricing has been fairly static for a while, Paul says, the mandarin and Meyer lemon markets have been very strong. He adds that the lemon market is also very good, and expects that to continue on into the summer.
As the spring season wraps up, Duda will begin its summer citrus import program in early June, featuring navel oranges, mandarins, and lemons from several of Southern Hemisphere countries including Chile, Peru, and Uruguay. The company has shipping locations in California, Pennsylvania, and Florida, enabling it to service customers across the U.S..
For Florida citrus, Seald Sweet’s Florida Citrus Category Manager Dave Brocksmith says that its citrus season is winding down, with both grapefruit and tangerines finishing off with excellent quality. Dave expects the company to wrap up with juice oranges soon, projecting them to be available through July.
Florida is still combatting citrus greening, as we reported earlier this year, causing for another slight drop over last year’s volumes for several growers, Seald Sweet adds.
“Our biggest impact is due to greening, causing a decline in volume of about 70% this year from its peak in 1998,” continued Brocksmith.
This isn’t stopping the region from promoting, however. There is a new item this year, which is technically an old variety—the Florida citrus industry has reclassified Temple Oranges as “Royal Tangerines,” the company says.
“What’s old is new again! This is a more appropriate classification since it is essentially an easy-peeler and has characteristics and eating qualities closer to the mandarin/tangerine category than oranges,” Brocksmith finishes. “This season the quality has been excellent and one of the best quality products we’ve had in our Florida citrus offerings.”
As we continue a strong season across regions, stay tuned to AndNowUKnow as we follow both the domestic and the upcoming citrus import season.
PORTLAND, OR – Pear Bureau Northwest has announced a new addition to its team in communications veteran, Morgan Cairns, as its Sampling and Event Coordinator.
“I can’t wait to sink my teeth into the Sampling & Event Coordinator position at Pear Bureau Northwest,” said Cairns. “I’m proud to join this creative and hard working team. Plus pears happen to be my favorite fruit.”
The company said that Cairns’ varied experience in foodservice, events, graphic design, and event planning will be an asset to its brand as she takes on the role of Sampling and Event Coordinator. Pear Bureau cited Cairns’ work with social media strategies for clients at Expand YOUR Brand as a most recent example. Cairns also has communications experience from work with Winning Mark and BRIX Tavern.
"In-store sampling and event sampling are essential parts of our marketing plan, encouraging consumer trial, impacting sales, and driving repeat purchases,” said President and CEO, Kevin Moffitt, in a press release. “With Morgan onboard, we can make demos more effective, increase consumer loyalty to pears, and increase pear sales. We are very pleased to have her join our team."
In addition to her vast personal experience, the company cites Cairns’ educational background as a plus to the position. Cairns earned a BA in Applied Arts & Sciences with focus on Graphic Design from San Diego University, and completed multiple Wings personal development seminars.
“Morgan’s enthusiasm, drive, and experience will be an asset to PBNW,” finished Moffitt.
Continue to count on AndNowUKnow for leading industry hiring news.
WENATCHEE, WA – Several weeks and over 25,000 online votes later, the U.S. Apple Association’s March Madness Chompionship is down to two finalists for the association's winning title of America’s Favorite Apple; one of which is CMI’s own Ambrosia™ Apple.
Wendy Brannen, Director of Consumer Health and Public Relations said in a recent statement released by the U.S. Apple Association, “After four exciting weeks of fiercely-close battles among popular favorites, potential upsets from up-and-coming varieties, and an all-round slam dunk in participation from members, we’re excited to unveil the two varieties consumers have selected to go head-to-head for the title of America’s Favorite Apple. And the final match-up is between Fuji and Ambrosia™.”
At the start of the competition, the U.S. Apple Association set up a national online contest, matching up each apple competitor in a 32 bracket system familiar to those who use the NCAA basketball bracking system. After a surprising bump of Honeycrisp, said U.S. Apple Association, only Fuji and Ambrosia™ are left to vye for the top spot.
“We are incredibly honored that Ambrosia™ apples made it this far, “said Steve Lutz, Vice President of Marketing at CMI, in a press release. “Ambrosia™ is one of the fastest growing apple varieties in America; consumers are remarkably passionate about their sweet, honey-like flavor and consistent crisp quality and can’t get enough of them. We had hoped this would show up in the voting and are so pleased that it did.”
Citing U.S. supermarket sales data from Nielson, CMI said that Ambrosia™ has delivered the highest volume growth date of any of the top 10 apple varities in the U.S., moving up in the numbers from last year.
“CMI growers are working hard to keep up with the explosion in popularity as more consumers discover Ambrosia™,” continued Lutz. “With production increasing annually and consistent year-round availability, Ambrosia™ is poised for continued success in the U.S. as more retailers discover the tremendous sales opportunity brought by adding Ambrosia™ to their offering.”
A CMI exclusive, Ambrosia™ apples are grown solely by McDougall & Sons, an owner of CMI. The company said that it has high hopes for the product’s performance in the Chompionship final.
“Fuji is a strong, popular apple,” finished Lutz. “But we like Ambrosia’s™ chances. We expect Ambrosia™ to emerge from the consumer voting in the March National Chompionship earning the title of America’s Favorite Apple.”
Keep checking in with AndNowUKnow for contest results and exciting product news in the industry.