NEW YORK, NY - With its April deadline quickly approaching, Fairway Market could face bankruptcy if it does not increase its cashflow.
“Our current limited cash resources and significant leverage will adversely affect our ability to open new stores,” the company said, according to the New York Post.
Fairway says its main plan to raise funds is by opening new locations. The report also states that the company has had a series of “significant losses,” a total of more than $300 million over the past five years and $35.7 million just in the most recent quarter ended December 27th. For this reason, the report expects the company to have a hard time meeting certain debt obligations.
Among its list of struggles, Fairway says the company's biggest competitors have “more experience operating multiple store locations or have greater financial or marketing resources,” the report shares. Namely, the competitors included were Whole Foods, Trader Joe’s, and Stop & Shop.
If the company does end up choosing to file for bankruptcy, Fairway may find it difficult to find buyers in the current market. A&P, who also recently liquidated the last of its stores and assets, had notable issues in selling its over 100 locations withing the region.
“The question is whether there is a turnaround in the future of this company,” David Tawil, President of Maglan Capital, told the New York Post. “There is not a big pool of potential buyers as we saw with the A&P bankruptcy.”
AndNowUKnow will continue to follow the situation as further details unfold.
SAN ANTONIO, TX - As competition continues to grow in the ever-evolving greenhouse-grown tomato category, NatureSweet is ramping up distribution of its new Constellation medley pack to retailers across the U.S. This new pack, launched at last year’s PMA Fresh Summit, features five different tomato varieties that are tailored to a range of eating experiences.
“The popularity of Constellation continues to grow, and as demand increases we are distributing in new regions across the country,” Michael Joergensen, Vice President of Marketing, tells me. “Currently, the variety pack is in multiple divisions of club stores and several retail banners. We started out with just a handful of retailers in Midwest, now retailers on both coasts are interested in the Constellation medley pack.”
NatureSweet continues to refine its variety R&D through consumer research to perfect the right mix of product.
“We have found that consumers gravitate toward the idea of a tomato for every occasion - salads, snacking, sandwiches and cooking,” Michael adds.
Constellation is a predetermined mix featuring the SunBursts and Glorys varieties, as well as three new tomatoes, the Jubilees, a chocolate grape tomato, and an orange grape tomato. All these tomatoes have been bred for flavor with each answering a different calling – SunBursts are ideal for a sweet, healthy snack; the new orange grape tomato adds a burst of color and flavor to salads; Glorys tomatoes are for cooking; the new Jubilees are ideal for sandwiches; and the new chocolate grape tomato offers versatility for multiple uses.
“Each offers a size and flavor profile that can be used across the kitchen. For example, Jubilees are high-flavor with a brix of about 6.5 and can be used as a single-serving tomato. The medium, round tomato cuts into about 5 to 6 slices, the right amount for one sandwich with no waste,” Michael says. “A variety pack is also a great way to introduce more specialty varieties, like a brown grape tomato, to the consumer who may not be as eager try them if the varieties are packaged individually.”
2016 definitely looks to be a year of growth for NatureSweet. The company will continue to evolve the Constellation medley pack, and will also be expanding its everyday lineup in more retailers with more sizes. The company has also moved all of NatureSweet’s products into proprietary packaging, and will continue to work on new packaging designs that will elevate its items.
With additional programs on the horizon for NatureSweet, stay tuned to AndNowUKnow for the latest news and updates.
MISSISSAUGA, ONTARIO - Chantler Packaging Inc. is introducing a new product, PrimePro® Core. PrimePro® Core uses proprietary equipment to create an ethylene absorbing film technology incorporated into micro flute material, developed specifically for retail ready merchandising and displaying of between 4 to 10 fruits or vegetables.
“The produce industry is always looking for innovation and we are proud to offer a new and competitive advantage in packaging,” explains Francisco Vercher, International Sales Manager for PrimePro® Europe. “What we have is something that is effective throughout the entire supply chain, even on the retail floor.”
In a partnership with Spanish packaging printing and graphics company, Flexomed, the PrimePro® Core solution was first piloted overseas. Flexomed took the PrimePro® shelf-life extension technology and laminated it to corrugated trays and compact boxes, giving to easy application of ethylene absorbing material without the requirement of additional materials or labor, such as tying, sealing, or gassing, according to a press release.
PrimePro® Core has already won Barcelona’s LiderPack Award for 2015’s Best Food Packaging, which the company says is one of the most recognized awards in packaging and point-of-sale advertising in Spain. To be considered for the award, PrimePro® Core’s efficacy was tested extensively on various fruits and vegetables by Centro Tecnológico de la Conserva y Alimantacion (National Technology Centre of Packaged Food).
“This new product and test results really show how versatile the PrimePro technology is, without any complicated application methods. It’s not just your ordinary MAP technology,” says Grant Ferguson, VP of Sales and Marketing for Chantler Packaging Inc. “Its incorporation into rigid produce retail corrugate and paperboard easily extends shelf-life, but more importantly, it reduces food that goes to waste.”
Now, Chantler Packaging Inc. will offer PrimePro® Core to more customers throughout Europe and beyond. Ferguson adds, “We are confident that this solution can help our friends in Canada and USA, and even South America. We’re excited to expand PrimePro Core to high-value commodities such as pears, cherries, stone fruit, and organics.”
PrimePro® shelf-life extension technology is available in a variety of formats, the company says, including pallet covers, sheets, bags, and rollstock and does not require sealing or gassing.
CALIFORNIA - It looks like the weather is turning around in time to supplement those Valentine’s promotions with the ever-popular strawberry.
Cooler conditions have made volume a challenge for growers, Cindy Jewell, VP of Marketing for California Giant Berry Farms, tells me, but it looks like a little bit of luck could come their way.
“We are definitely ramping up for the Valentine’s Day pull and doing our best to supply customers with the stem berries they are all ordering,” Cindy says. “We have challenges in supply due to the weather conditions we have been dealing with over the last few weeks and the cold nighttime temperatures we have been getting for the last few nights don’t help either.”
But with the warmer turn the weather took this last weekend, as well as much of this week, Cindy said that the company is expecting more help in that arena before the holiday arrives.
Naturipe’s Director of Marketing, Kyla Oberman, also had a confident outlook for the strawberry circuit when it comes to those Valentine’s promotions, telling me that the weather has cooperated nicely in the last few weeks, giving strawberries a chance to bounce back to promotable volumes for Valentine’s Day and beyond.
“The 2016 season for strawberries looks strong – both supply and quality are looking excellent,” Kyla says, adding that Mexico’s production is currently going strong and is expected to reach peak all of February. “Oxnard is expected to peak late-February, with Santa Maria and Salinas/Watsonville coming on strong in March and April through the summer.”
As for retailers, Kyla suggests going big with large colorful displays of berries in the produce department to catch the eye and inspire those impulse buys.
“Naturipe’s long stemmed strawberry bouquet packs are uniquely designed to resemble long-stemmed roses; these are ideal for a retailer's Valentine’s display,” Kyla tells me. “Merchandise with complimentary products such as Dulci Frutta chocolate dipping kits, whipping cream or even champagne!”
California Giant currently has a promotion in place for the special occasion, as well as offering a contest to offer that extra push of incentives.
“We have a fun Valentine’s Day consumer promotion in place right now offering great recipes for the big day and a contest offering berries,” Cindy says.
To see the several recipes and temptations, go to the California Giant’s Valentine’s Day Dessert Guide here.
For more updates and ideas to go big in produce for the holidays, keep checking in with AndNowUKnow.
UNITED KINGDOM - Tesco has been sent the bill for the costs of the Grocery Code Adjudicator (GCA) investigation into the company’s business practices.
GCA’s Christine Tacon has instructed the retail giant to pay the watchdog organization £1.2 million ($1,730,286) for the year-long investigation, according to The Guardian.
As we previously reported, the GCA looked deeply into Tesco’s practices after questions were raised about it and other major retailers acting unfairly within the supply chain, finding that the chain would delay or not pay suppliers in instances where disagreements occurred. Many of those that were denied or delayed payments for months or year were farmers and ranchers.
After the findings were announced, Tesco’s CEO Dave Lewis accepted the allegations publicly, releasing a company statement detailing implemented fourteen new initiatives the company has implemented to improve the way it works with suppliers.
A clip of that statement can be found below.
While the GCA would normally have the power to levy fines up to 1% of turnover in value, this was not granted to them until after the infractions it found in Tesco’s practice took place. Therefore, while its findings were made publically known, the GCA was unable to bring any monetary penalties to the retailer.
“I asked Tesco to contribute this money, which is a sizeable sum for any business,” Tacon said, according to The Guardian, in regards to the $1.7 million charge.
The investigation was launched in February of last year, with the findings having been released last month on Jan. 26th. To view the full findings, click here.
AndNowUKnow will continue to follow any influential moves by Tesco and other retailers that could affect the produce industry.
SANTA CLARA, CA - Peyton Manning and Beyoncé weren't the only winners at last night's Super Bowl. The real winners this year were those of us who found ourselves laughing, maybe even crying in front of our television sets to some of the more awe-inspiring commercials in recent memory. And being your source for produce industry news, we at AndNowUKnow thought we’d round up our five favorite food industry picks from this year’s Super Bowl Sunday:
1) Avocados From Mexico
You guys had to have seen this first pick coming—the produce industry’s first ever Super Bowl commercial got a sequel this year with Avocados From Mexico’s Avocados in Space ad. Harkening back to such classic cultural icon’s as 2015’s “the dress” and the 1980’s “Scott Baio,” this commercial showcased Mexican grown avocados as one of the main things us Earthlings will be remembered for.
2) Kraft/Heinz
The cutest weiners you’ve ever seen met a whole new family of condiments in this now instant classic of a commercial. You’ll not soon forget the sight of hundreds of dachshunds in hot dog costumes happily bounding through a field in search of the perfect ketchup. And if Kraft/Heinz’s ad actually served its purpose, you wont forget the company’s several less familiar condiment selections as well.
3) Taco Bell
This is one I had on my personal radar this year. The quasi-Mexican food giant unleashed its long-awaited culinary masterpiece, the Quesalupa, with this 30-second spot. Comparing its new item, which is essentially a quesadilla wrapped around a fluffy tortilla-ed taco, to such cultural phenomenons as the “man bun,” Tinder, and the hoverboard, Taco Bell hit all the right marks to pull in its millennial demographic.
4) Mtn. Dew
What was some people’s favorite moment of the night, and some people’s worst nightmare materialized, Mtn. Dew used its bloodcurdling hybrid of a puppy, a monkey, and a baby to shuck its hybrid juice and energy drink, Mtn. Dew Kickstart. Expect this to go viral, but more in the same kind of way that something like ebola goes viral.
5) Doritos
Put the horror of the Puppy Monkey Baby behind you with this feel-good Doritos ad. A finalist in its fan submitted commercial contest, this ad combines, cute dogs, costumes, and a classic comedy gag to win the hearts of tortilla chip fans everywhere.
There you go, less-than sports fans! Now you won't look entirely out of the loop when the water cooler talk inevitably switches to Super Bowl ads this morning.
LODI, CA – Rivermaid Trading Company is welcoming Kyle Persky as the new Sales Manager for its fresh Pear and Cherry business.
While working out of the company’s Lodi, California office, Persky will be responsible for working together with the sales team to optimize distribution opportunities in California cherries and pears.
Looking forward to his new role, the 14-year industry professional said, “Over the years, I’ve developed strong relationships with retailers and wholesalers throughout North America. My experience has given me the knowledge of how to deliver fresh produce across many distribution channels.”
Prior to joining Rivermaid, Persky worked at Scully Packing Company, managing domestic and international sales from 2008 – 2015 and focusing his efforts primarily on key North American retail and wholesale customers, according to a press release. Before Scully Packing, he was employed at Carter Thomas, managing pear sales in the U.S. and Mexico.
CEO Patrick Archibeque previously worked with Persky at Carter Thomas, and felt strongly about his experience and skills in the pear business.
“I have first-hand knowledge of Kyle’s capability and work ethic,” he said. “And, as a long time competitor I know Kyle understands Rivermaid in ways only a competitor can. His knowledge will bring additional strength and insight to our team.”
Rivermaid owns and manages 7,600 acres, and operates 80,000 square feet of packing facilities, including 5 pear packing lines, 2 cherry packing lines, and 7 forced-air cooling tunnels.
“I’m particularly excited about the fast-approaching cherry season,” Persky continued. “Rivermaid has made significant investments in the field and packing house over recent years and are set to thrive in the intensely competitive market. I think we have the best cherry program among the California shippers.”
With this latest addition, Rivermaid is confident that it is poised for success in the near future.
LIMA, PERU – Camposol closed the year with a record-breaking fourth quarter, reporting a massive spike in earnings.
Higher volumes of blueberries, tangerines, mangos, and seafood, as well as higher prices of avocados and blueberries, have sent the company’s EBITDA up 209.4% higher than its fourth quarter of 2014, according to a press release. The company reported a record EBITDA of $19.2 million for the fourth quarter of 2015, as well as a record EBITDA of $42.8 million, up 24.1%, for the same reasons mentioned previously, for its full year 2015.
“Fourth quarter and preliminary full year results are in line with our expectations (considering ‘El Niño’ effect) and reflect the significant increase in volume of our blueberries segment (4x compared to 2014),” said CEO Manuel Salazar Diez Canseco. “The company’s growth without any substantial additional capex will continue in the next years, as we continue to produce increasing volumes of avocados, blueberries, and shrimp.”
Other financial highlights from the report include:
- Record sales of $86.4 million in Q4 2015, up 18.4% from Q4 2014, due to an increase in volume sold of blueberries, tangerines, mangos, and seafood.
- Record sales of $289.3 million for the full year 2015, up 8.1% from 2014, due to higher volumes of blueberries and seafood
- As of December 31st, 2015, Camposol maintained a cash balance of $26.6 million
Previously it was announced that Camposol would enhance its fresh and frozen portfolio and exit the preserved business. The company believed that in so doing it would allow for “greater specialization, efficiency, and focus on product categories in which the company has made significant investments in recent years, and thus maximize opportunities for growth and consolidation of its business.”
Looking ahead, Camposol said that the long-term growth prospects for exotic fruits and vegetables are excellent with good demand for all fresh produce.
For more on Camposol’s financial performance, stay tuned to AndNowUKnow.
FRESNO, CA - With February underway and the first part of the year already flying by, weather is continuing to keep the produce game on its toes. And as Crown Jewel’s Partner, Atomic Torosion, tells me, the company is working with retail partners to bring much needed grape supplies to U.S. consumers as the industry works to get Chilean supplies back on track.
Currently shipping Chilean grapes to the West Coast (Long Beach) until early April, the company is looking to bring supplies to the retail community leading up to Crown Jewels’ Mexico grape deal kicking off in late April.
For the next few weeks the company will be shipping Flames, Sugraones, Thompson Seedless, and Crimson varieties. The Chilean season has been a challenge this year with El Niño throwing a curveball to many growers in the region, with untimely rains earlier in the harvest season. With these noted challenges during this Chilean season, I asked Atomic how quality and flavor were faring.
“The sugar brix should be good as the weather starts to warm back up and dry out. We need to keep and eye on the quality as we go and hopefully the weather cooperates,” Atomic tells me. “We work closely with our quality assurance team to ensure the best product gets to retail partners. The grape category continues to grow each and every year, driven by quality, flavor, convenience, health benefits, and new grape varieties.”
Grapes from Chile help to support Crown Jewels’ U.S. and Mexico grape operations. The company finished shipping grapes from California in late December before transitioning into the Chilean deal. The company will then go back to Mexican grapes starting in late April and finishing the first of July when the Central California deal starts up again.
“We are going full speed again until January. This keeps us in the grape deal almost 12 months of the year making it a smoother transition for our customer base,” Atomic says.
After celebrating Crown Jewels’ 25th Anniversary this past season, the company is growing as a diversified grower, packer, shipper, "with some of the best grower partners in the industry for fresh fruits and vegetables," he adds. Crown Jewels is also continuing to evolve its year-round supplies of many important produce items for the discriminating retailer, foodservice and wholesaler customers.
“We are already working on our next 25-year plan,” Atomic says. “It has been amazing to be a part of this company’s growth and vision.”
As grape demand continues to grow and Mother Nature decides her next pitch, stay tuned to AndNowUKnow for additional updates.
RANCHO CORDOVA, CA – Renaissance Food Group, a division of Calavo Growers, Inc., is bringing a festive St. Patrick’s Day favorite to produce departments with a new look this year.
The company is now taking pre-orders for its popular pre-cut and ready to cook Garden Highway brand Irish Stew Mix, which blends together green cabbage, red potatoes, carrots, and red and yellow onion, for a healthy fusion of St. Patrick’s Day flavors.
New this year, Garden Highway will feature a colorful St. Patrick’s Day themed label, which will help to draw consumers in search of holiday meals, according to a press release. The bottom label will also provide consumers with helpful cooking suggestions.
“As consumers’ lives grow increasingly busy, the need for simple, healthy solutions continues to grow. This is especially true of the holidays, when consumers are more time-strapped than ever,” said Nelia Alamo, Director of Marketing and Fresh Strategy. “Garden Highway is proud to offer our recipe-ready Irish Stew Mix, which takes the prep and waste out of cooking a holiday meal, giving families a chance to spend more time together.”
You can contact your Garden Highway sales representative to pre-order this item now.