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SANTA PAULA, CA - Calavo Growers has reported its Q1 2016 operating results, showing record revenue, gross margin, net income, and per-share results. As a result, the company’s stock rose nearly 10% following the big announcement.
“Calavo has begun fiscal 2016 in fine form, posting improvements in several key metrics. The company has posted year-over-year revenue growth in each of the past 13 consecutive quarter,” explained Calavo Chairman and Chief Executive Officer Lee E. Cole in a statement. “We packed approximately 10 percent more cartons of fresh avocados in this year’s first quarter versus last year, while driving higher margin on lower year-over-year average selling prices for avocados, underscoring sourcing and production-management capabilities that are among Calavo’s hallmarks.”
During the quarter, net income rose 19.8 percent to $6.3 million, approximating $0.37 per diluted share. This is a substantial jump from the company’s output during last year’s Q1, where net income reached $5.3 million, or $0.31 per diluted share. Total revenues grew to $204.6 million in this year’s first quarter, up nearly 10 million over last year.
Cole also commented on the anticipated growth for the avocado industry in general for 2016, explaining that over 2 billion pounds of the crop are expected overall.
“Industry projections continue to point to consumption that is expected to reach 2.5 billion pounds this year. To this point, consider that on the recent Super Bowl Sunday alone, avocado consumption was estimated at 139 million pounds, up from 99 million pounds two years ago and it puts this growth rate in perspective,” Cole added. “The fresh avocado crop this year will be substantial, as well, with a larger expected volume from California supporting the supply of Mexico-grown fruit.”
Other highlights from Calavo’s financial report include:
- Diluted EPS rises to 37 cents versus 31 cents the year earlier.
- Gross margin reached 17.9% to $21.0 million up from $17.8 million.
- Revenues grow to $204.6 Million, up from $194.8 Million in 2015.
- Sales for fresh rose to $113.1 million from $111.6 million in the corresponding fiscal 2015 period.
- RFG business segment sales grew 10.8 percent in the most recent quarter to reach $75.9 million.
- Calavo Foods business segment climbed to $15.5 million, a 5.9 percent increase from $14.6 million.
According to Analyst Ratings Net, Calavo traded up 9.8%. The analyst website reports that following the results, the company’s stock reached as high as $55.47, ending at $54.21.
For more industry financial news, continue to check back with AndNowUKnow.
BATAVIA, IL - Aldi U.S. is promoting one of its division Vice Presidents to help pave the way as it looks to grow its footprint in the country.
20-year company veteran and Vice President of the Saxonburg division, Brent Laubaugh, has been announced as a third incoming Co-President for the retailer’s U.S. arm, effective on March 28, 2016.
"ALDI has a different style when it comes to grocery shopping and that differentiation has helped make us one of the fastest growing retailers in the U.S.," Jason Hart, CEO of Aldi U.S., said in a press release.
Laubaugh joins current Co-Presidents David Behm and Chuck Youngstrom, all of whom will report directly to Hart.
"To support our significant expansion, it was important that we strengthen our leadership team to ensure our success,” Hart added. “With the addition of Brent to our team, we have the right leaders in place to continue growing the Aldi business."
In the two decades that he has served the company, Laubaugh has worked his way up the ladder, gaining more resposibility and leading larger teams. Now he will help lead the way in Aldi’s large expansion plan, which includes investing more than $3 billion in land, facilities, and equipment over the next few years in its goal to have nearly 2,000 U.S. stores in the next five years.
As we previously reported, Aldi is in the process of opening a number of stores in California, its first in the region, starting at the end of this month when Laubaugh’s promotion goes into effect.
AndNowUKnow will continue to report on this and all other retail chains looking to expand their influence in the market and, in turn, the produce industry.
TORONTO, ON – Red Sun Farms has been named as one of Canada’s Best Managed Companies in 2015, achieving the coveted Gold Standard level of awards.
Jim DiMenna, Red Sun’s President and CEO, shared a few thoughts with us on the achievement, and remarked that he is extremely proud and humbled to be recognized for this prestigious award once again.
“One of the key drivers for this company is that we’re always trying to work together the best we can,” DiMenna tells us. “Not only does this award speak volumes about our intensely-driven team, but it’s also a great opportunity for us to stay top-of-mind twelve months of the year. We’re proud to be one of the recipients of the 50 Best Managed Companies award, and we look forward to continue doing what we do best – delivering great products to our customers and keeping the company financially secure and solid for the many years to come.”
The Best Managed award, sponsored by Deloitte, CIBC, National Post, Queen’s School of Business, and MacKay CEO Forums, recognizes Canadian owned and managed companies with revenues over $10 million for sustained growth, financial performance, management practices, and the efforts of the entire organization, according to a press release.
“I would like to recognize the entire efforts of Red Sun Farms. It takes a dedicated effort from an entire team to focus on a core vision, create stakeholder value and excel in the global economy to achieve this level of success,” said Peter Brown, Partner, Deloitte and Co-Leader, Canada’s Best Managed Companies program.
Another sign of its success as a company is the forward-looking, team-oriented culture that is so prevalent at Red Sun. In 2014, the greenhouse grower was also recognized as one of Canada’s 10 Most Admired Corporate Cultures.
“We are always looking to re-invent ourselves every year, and this year is no exception,” DiMenna continued.
The 2015 winners of the Canada’s Best Managed Companies award will be honored at the annual Canada’s Best Managed Companies gala in Toronto.
YUMA, AZ - Natural Delights™ Medjool Dates is kicking up its game to drive consumer demand on the retail side, as well as support in-store performance, with the launch of its “Your Date with Fitness” promotion.
“We are connecting directly with consumers to drive awareness around the Natural Delights™ brand year-round and have built an exciting retail program that brings these promotions into the aisle with a full suite of partnership opportunities,” Erin Hanagan-Muths, Director of Marketing for Bard Valley Date Growers, said, according to a press release.
The first in a year-long series, the campaign looks deliver demand-generating activities through an ad campaign spanning digital, mobile, and social media channels, giving Natural Delights and participating retailers with over 150 million impressions.
The company’s sales teams stated that it is currently seeking retail partners to join forces with what looks to be a series of strong campaigns.
Options for retail partnership include:
- On-pack National Sweepstakes
- Tie-in Social Media Programs
- Content Integration
- In-Store Radio Merchandising Displays
- Demo Program With Store Registered Dietitian
- Tie-in Store Level Incentives
In today’s health-aware market, Natural Delights™ Medjool Dates offers a Non-GMO Project Verified, pesticide-free, and additive-free option that provides 50% more potassium by weight than bananas, and supplying 12% of your RDA of fiber.
To sweeten the deal, not only is Natural Delights offering consumers what it is calling “Nature’s Power Fruit™,” but also a chance to win a FitBit® Charge HR fitness tracker.
Below is the Natural Delights Consumer Promotion Calendar:
- Your Date with Fitness March 1, 2016 – April 30, 2016
- Let the Good Times Roll May 1, 2016 – June 30, 2016
- My First Date August 1, 2016 – September 30, 2016
- Naughty or Nice November 1, 2016 – December 31, 2016
Interested retailers can contact Bard Valley by emailing [email protected].
ORLANDO, FL – Shares in Darden Restaurants were on the rise in mid-day trading after the company posted an encouraging third quarter earnings forecast that surpassed analyst expectations.
On an adjusted basis, the restaurant operator said that it expects diluted net earnings per share from continuing operations to be approximately $1.18 to $1.21, topping estimates of $1.06 per share, according to MarketWatch. The adjusted results exclude debt breakage costs from the early retirement of debt and other fees associated with the spin-off of Four Corners Property Trust.
Other highlights from Darden’s third quarter outlook include:
- Net earnings per share from continuing operations are expected to be approximately $0.81 to $0.84
- Same-restaurant sales are expected to increase approximately 6%
- On a comparable calendar basis, Darden expects same-restaurant sales to increase approximately 4%
In addition to its third quarter financial expectations, Darden appointed former Chief Strategy Officer Ricardo Cardenas as its new Senior Vice President and Chief Financial Officer. Cardenas is replacing Jeffrey Davis, who has left the organization to pursue other opportunities.
Meanwhile, Harald Herrmann, President, Specialty Restaurant Group, said that he will be stepping down from his position, effective August 2016. He will serve as Senior Vice President, Special Projects until his departure.
Lastly, Darden said that it has implemented a new reporting structure for its dining brands. The Capital Grille and Eddie V’s and Yard House will become direct reports to CEO Eugene Lee, Jr. Olive Garden President Dave George will assume additional responsibilities through oversight of Seasons 52 and Bahama Breeze along with his current role.
“Our continued success and momentum is a direct result of executing against our plan and maintaining our focus on consistently delivering outstanding guest experiences,” Lee said in a press release. “I am confident that the leadership appointments and organizational changes we announced today will further strengthen our organization and will allow us to maintain our positive momentum.”
Stay tuned for more upcoming news on Darden’s financial performance.
BELLINGHAM, WA - It looks like it may all come full circle for Haggen in the end. The recently bankrupt retailer’s union says that government regulators have already given approval to a potential deal where Albertsons would purchase the remaining 33 core Haggen stores.
While Haggen has yet to comment on the potential transaction itself, the United Food and Commercial Workers (UFCW) International Local 367 issued a written statement claiming the Federal Trade Commission (FTC) has approved a potential acquisition of the core stores. UFCW Local 367 reports that Albertsons and Haggen are currently finalizing the purchase agreement.
“It appears that other bidders are not going to raise their bids or otherwise make them qualified bids, so the scheduled auction is canceled and the sale to Albertsons will be put before the court for approval in the next week,” reads a written statement from Local 367, the Bellingham Herald reports.
The news source also reported that UFCW Local 367 President Denise Jagielo commented, “This news will hopefully end the uncertainty for our members and our communities. Our members look forward to continuing their unparalleled dedication to the neighborhoods and their customers.”
If there is, in fact, a purchase agreement and it is finalized and approved by the bankruptcy court, this could mean the end of the Haggen saga entirely. Since filing for Chapter 11 bankruptcy in September 2015, the company began to quickly pull out of the new regions it gained from Albertsons, laying off employees, and entering into a $5 million legal battle.
While Haggen’s original plan was to restructure its business around the 33 “core stores” the company determined to be the most strong and profitable, it was given permission by the courts to also auction those in mid-December of 2015.
AndNowUKnow will continue to update you on this story as information is revealed.
MISSION, TX - After a successful debut of bringing innovative technology to the conference room, Viva Fresh Expo is looking to bump up the stakes with what it is calling “a glimpse into the future.”
Adding on to last year’s real-time virtual farm tours, Texas International Produce Association (TIPA) is now incorporating sky views with drone technology.
“When we launched the original virtual field tours during the inaugural expo in 2015, we received tremendous positive feedback,” Dante Galeazzi of Crescent Fruit & Vegetable and manager of the tours, commented in a release. “Buyers were able to see and speak to the grower in the field in real time. This year, we’ll be expanding the virtual tours using drone technology during our tour with Tenaza Farms providing additional aerial views and a unique perspective that cannot be seen from the ground level.”
This year’s virtual field tours will take attendees to Triple H Produce in Sonora, Mexico, and Tenaza Farms in the Rio Grande Valley of South Texas without ever having to get into a vehicle.
As exciting as this might be, it is just one aspect of insights Viva Fresh looks to offer its attendees, according to TIPA President and CEO Bret Erickson.
“We’re really pleased with the comprehensive range of topics and expert speakers this year,” Erickson stated. “Education is a key component of the Viva Fresh Expo and the variety of topics is relevant to all attendees and relates to what is currently impacting the produce industry both today and in the future.”
Sessions kick off on Friday, April 1 at the JW Marriott Hill Country Resort in San Antonio, Texas, promising quite the educational lineup, including Mexico Mythbusters, a session moderated by Grow Farms Texas’ and former retailer Tommy Wilkins, which will review misconceptions about doing business in Mexico with a dialogue on food safety, quality control, and Mexico’s growth in importing.
Panelists include Will Steele, President of Frontera Farms, and Guillermo Martínez, General Manager, Kingdom Fresh Farms.
Melinda Goodman of FullTilt Marketing and Senior Vice President of the Nielsen Perishables Group, Sherry Frey, will turn the focus to the future with a combination of consumer trend data and research to offer insight into both consumer behavior its influence in future shopping experiences.
“We have an exciting and relevant lineup of topics and speakers,” Goodman, who also serves as the Education Committee Chair, said. “Our goal is push the boundaries of traditional lecture sessions with innovative topics and interactive presentations that engage the audience and create an ongoing dialogue that shares key learnings from examining what’s happening in Mexico, to the impact of global weather patterns and predicting the future of the grocery shopping experience with the growth of Technology.”
Frey added that the industry often thinks of products as commodities and fails to understand the power of the consumer experience, as well as how products and the environments in which they are offered impact paths to purchase and, ultimately, consumption.
Looking to water challenges and the weather, Joe Bastardi, Chief Forecaster at WeatherBELL Analytics will also be there to speak on how greater understanding of global and historical weather patterns and the science of forecasting the weather can help to provide important information for business growth and profitability.
For more information on what to expect at the end of this month in San Antionio, Texas, visit the expo website at www.VivaFreshExpo.com.
IMMOKALEE, FL – Lipman has hired Suresh DeCosta as its new Director of Food Safety, North America and Latin America.
Bringing more than 15 years of quality management experience, industry knowledge, and executive expertise to his new role, DeCosta’s mastery of the food science field is highly regarded. He has received multiple industry awards, including the UFPA technical award for his leadership in helping standardize agricultural food safety practices, according to a press release.
“Food safety is a top priority for Lipman and our industry. We are fortunate to have someone with Suresh’s knowledge and experience join our team,” said CEO Kent Shoemaker. “Suresh is widely recognized as a food science industry expert, and I’m confident he will be a tremendous asset for our company.”
Prior to joining the open field tomato grower, DeCosta was employed at McDonald’s Corp. as its Manager Quality Systems for U.S. Supply Chain Management. He is also the Chairman of the United Fresh Produce Association Food Safety and Technology Council and also serves on its Board of Directors.
DeCosta received his bachelor’s degree in environmental science from Slippery Rock University and his master’s degree in food science from Chapman University. He will be based in Chicago.
PITTSBURGH, PA - The trend to push produce that doesn’t fit in with the traditional aesthetic standards looks to be growing within the retail circuit.
Giant Eagle is offering “ugly” produce that it would normally toss at a discounted rate to tempt consumers, according to the Pittsburgh Post-Gazette.
“Cosmetically challenged produce is just as delicious and nutritious as its more eye-catching counterparts,” Giant Eagle said in a statement Thursday, according to the report.
The chain is testing the pilot program in five area stores. If successful, this could trigger a large practice in shrink reduction on the retail side, as Giant Eagle is one of the biggest grocers in the Pittsburgh area.
“We were noticing this more global trend and wanted to play our part,” Dan Donovan, Manager of Corporate Communications for the retailer, said in the report. “We’re always looking for new ways to deliver value to our customers. If you can participate in the worldwide effort to reduce food waste, that is fantastic as well.”
Donovan added that it is consumer demand and the availability of reliable, quality supplies that will ultimately determine the program’s continuation and expansion outside of the pilot stores.
Referred to as “Produce with Personality,” the program will offer three produce categories to start: navel oranges, russet potatoes, and apples.
The savings in price will vary; however, the Gazette notes that right now a four-pound bag of ugly navel oranges is priced at $2.99, saving the shopper 40 percent off the regular price but more conventional navels in the same bag size for $4.99. On the other hand, potato savings are posted at about 17 percent.
Now on the shelves about two weeks, Donovan said that the retailer has received positive feedback from consumers thus far. But finding suppliers is “more challenging,” he said.
Currently, Giant Eagle is bringing its imperfect apples from Western Pennsylvania, while other items are being sourced from the south and west coasts.