SANTA PAULA, CA – Shares in Calavo Growers were on the rise this morning after the avocado company shared the financial results of its “most successful year ever.”
As of 12:50 pm EST, Calavo’s stock was up 1.51% to $50.26 on news that it had reached record levels for revenues, gross margin, and earnings per share (EPS) for the full fiscal year 2015, including double-digit growth of the latter two metrics.
Lee E. Cole, Chairman and CEO, said that the continued success is “gratifying and reflects focused implementation of our strategic business agenda,” according to a press release.
For the full year of fiscal 2015, Calavo reported record revenues of $856.8 million versus $782.5 million last year, gross margin of $85.2 million versus $71.2 million last year, and diluted EPS of $1.57 from $0.01 per share last year.
“These record-setting results were achieved in spite of a challenging pricing environment for avocados,” Cole said in a statement, acknowledging the downward pricing pressure on per-unit avocado prices. “This was a unique situation, reflective of an avocado industry rapidly transitioning to annual consumption well in excess of two billion pounds.”
For the fourth quarter, the company’s fresh avocado unit volume increased 22% and gross margin climbed 90% to $5.2 million from $2.8 million during the same period last year.
Sales for the Renaissance Food Group business segment rose 12% and gross margin increased 41.8% to $7.2 million from $5.0 million during the same period last year.
Looking ahead, Cole said that Calavo is in ideal position to achieve yet another record year in 2016 with total avocado consumption expected to reach 2.5 billion pounds next year, up about 20% from 2015.
New facilities in Jacksonville, FL and Jalisco, Mexico are also expected to open in early 2016, which will expand the company’s service capabilities and geographic reach.
“We have built an outstanding company – with multiple revenue and profit drivers – that enable it to successfully navigate challenging cross-currents when they arise,” Cole concluded. “With so much to build on – including our breadth and depth of human, financial, and operational resources – I am highly optimistic of Calavo’s prospects ahead and confident of fiscal 2016 being a record-setting year with respect to revenues and earnings per share.”
Stay tuned to AndNowUKnow as we continue to track Calavo’s financial progress in the first quarter of 2016 and beyond.
MONROVIA, CA – Trader Joe’s is gearing up to launch its first Oklahoma store in February 2016, with a second location not too far behind.
The retailer plans to host its grand opening for the Tulsa store on February 26, 2016. The store will span approximately 9,500 square feet and will serve items ranging from fresh produce to artisan breads and deli items, as well as other specialty products.
A second store in Nichols Hills has not yet been given an opening date, but spokeswoman Alison Mochizuki told The Oklahoman that it would probably launch in the second half of 2016.
As we previously reported, Mayor Dewey Bartlett called Trader Joe’s announcement of its planned expansion great news and believes the company will open a new retail market for the city.
“With the announcements of Costco, Urban Outfitters, and now Trader Joe’s, Tulsa is a place where retailers want to be as we have a strong economy, philanthropic and business community, and have a uniqueness that is hard to find anywhere else in the country,” he said in a statement.
Applications for store associates will be accepted starting January 2nd, and will continue through the 6th.
WASHINGTON, D.C. - It’s no secret that we are in an El Niño year and that the numbers have meteorologists certain that this is one for the record books.
Previously referred to as the “Godzilla” of El Niños, NASA has been tracking the pattern to monitor its growth and learn more about the impact it could have.
“El Niño is a fascinating phenomenon because it has such far-reaching and diverse impacts,” Lesley Ott, Research Meteorologist at NASA’s Goddard Space Flight Center in Greenbelt, Maryland, said in an earlier NASA release. “The fact that fires in Indonesia are linked with circulation patterns that influence rainfall over the United States shows how complex and interconnected the Earth system is.”
Now, NASA has placed satellite images from the U.S./European Ocean Surface Topography Mission (OSTM)/Jason-2 mission side by side with those of the El Niño event of 1998 (the strongest on record) and the resemblance is striking.
"In 2014, the current El Niño teased us -- wavering off and on," Josh Willis, Project Scientist for the Jason missions at JPL, said in the latest release. "But in early 2015, atmospheric conditions changed, and El Niño steadily expanded in the central and eastern Pacific. Although the sea surface height signal in 1997 was more intense and peaked in November of that year, in 2015, the area of high sea levels is larger. This could mean we have not yet seen the peak of this El Niño."
This adds to our previous report, in which it was announced that despite seeing more precipitation and stronger storms this year than the last, the peak for El Niño wasn’t expected to hit until late January-early February, 2016.
Though NASA is still trying to understand the correlation between El Niño’s warming of the Pacific and how that effects weather around the world, it did say that one anticipated result is some relief for California and the Western U.S.
"The water story for much of the American West over most of the past decade has been dominated by punishing drought," Bill Patzert, JPL Climatologist, said. "Reservoir levels have fallen to record or near-record lows, while groundwater tables have dropped dangerously in many areas. Now we’re preparing to see the flip side of nature’s water cycle -- the arrival of steady, heavy rains and snowfall."
But while hopes continue to raise, NASA continues to caution that no one can predict the exact timing or intensity of U.S. El Niño impacts. "Looking ahead to summer, we might not be celebrating the demise of this El Niño. It could be followed by a La Niña [associated with less moisture in the air over cooler ocean waters], which could bring roughly opposite effects to the world’s weather," Patzert added.
While large El Niños delivered about twice the average amount of rainfall to Southern California back in 1982-83 and 1997-98, Patzert cautioned that, over the long haul, big El Niños are infrequent and supply only seven percent of California’s water.
As 2016 shapes up to be one of the largest El Niños yet, we will keep crossing our fingers that it could bring record relief as well.
HONG KONG, CHINA - McDonald’s continues to freshen up its format with the introduction of McDonald’s Next, serving up asparagus, quinoa, couscous, and customizable salads to honor its 40th anniversary in Hong Kong.
The twist for the U.S. Market? Speculations are circulating that this latest concept, in line with many other produce-centric experiments McDonald’s is testing in foreign markets, are a hint to the future direction of the traditionally unhealthy fast food chain.
Business Insider reports that this latest market to receive a fresh-focused menu is seeing a multitude of methods McDonald’s has been testing elsewhere, such as the previously reported berry-decorated belgian waffles from Australia, the salad options reminiscent of the Canada probe McCafe, and the Create Your Taste offerings currently offered in select U.S. cities like New York City, as well as New Zealand and other markets.
The customizable salads section of the restaurant is the heaviest produce offering McDonald’s Next will offer its Hong Kong consumers. Here, they can also choose from items like couscous, quinoa, asparagus, crayfish, and more.
Overall, it’s one more step in a direction that emphasizes more items from the produce industry, moving with the growing demand in fast food to offer healthier options and change the image the Golden Arches have long been associated with.
AndNowUKnow will continue to follow any moves the company makes that could put a larger emphasis on placing fruits and vegetables at the forefront of the fast casual food industry.
USA - In all the craze of the holidays it is almost too easy to forget minor things like registering your holiday gifts and latest technological tools. So, the FAA is providing a strong incentive: fines upwards of $27,000.
As we previously reported, the FAA issued a ruling that all drones purchased after December 21st would have to be registered before it even takes off, while those purchased before have until February 19th to register.
Register Your Drone by Clicking Here
Registration is free for the first 30 days of the program, and $5 dollars per drone after that. Infinitely better than the maximum civil penalty fine of up to $27,500 you could be hit with for flying without the proper paperwork.
If criminal penalties are applied, which can happen if flying in “no fly” zones, penalties can be a fine of up to $250,000 or three years in prison, according to NBC.
The strict reprimands the FAA have in place seem to be working. Gizmodo reports that more than 45,000 drones were registered within the first 48 hours of the launch of the online registration.
Registration is valid for three years, and can be applied for online by going here. Once the application is processed, applicants will receive a certificate with an identification number which must be marked on the aircraft. The FAA also stated when it announced the process that the owner should have a copy of his/her registration on hand while flying their craft.
The FAA requires registration for all drones weighing between 250 grams and 55 pounds at takeoff.
MATTHEWS, NC - Harris Teeter is looking to grow its distribution power by about 1.5 million square feet and 400 workers.
Virginia Business reports that the Matthews, NC-based arm of Kroger Co. is breaking ground on a brand new Virginia distribution center in 2017, a $95 million investment for the retail banner.
“The location makes sense for our existing distribution structure, and we look forward to contributing to the county’s economic growth as well as job market as we move forward with this project,” Danna Robinson, Harris Teeter’s Communication Manager, said in a statement, according to the report.
The first phase of the center will be a minimum of 650,000 feet, and once completed will bring at least 400 jobs to Virginia’s Caroline County.
Harris Teeter will be eligible to receive a Major Business Facility Job Tax Credit, and employees will receive assistance such as funding and training services from the Virginia Jobs Investment Program. Additionally, to assist the county with the project’s construction, Virginia Business reports that State Governor Terry McAuliffe gave the go-ahead on a $650,000 grant from the Commonwealth’s Opportunity Fund.
Overall, this new facility will be the latest addition to a network of 28,000 employees throughout more than 200 store locations under the Harris Teeter banner.
SANTA CRUZ, CA - Awe Sum Organics is kicking off its exclusive Peruvian grape program this winter for the third season.
Supplies are already rolling in for the company’s organic red seedless crimson grapes, as well as its organic green seedless sugraones, which Founder and CEO David Posner said were “wonderfully sweet, crisp, and delicious.”
Awe Sum Organics will finish its program with organic seeded red globes sometime in January. Red Globes offer the largest berry size among all of Awe Sum’s grape variety and will also be available in larger volumes than the company’s organic seedless crimsons, according to a press release.
“Two years ago there was concern about selling seeded grapes,” said Nick Moless, Program Manager. “But our accounts found their customers bought them in similar volumes as the seedless varieties and were incredibly successful with them.”
Awe Sum Organics grapes are available in two pack styles: an 18 lb. carton, containing twelve Handle Pouch Bags (all three varieties), and an 11 lb. carton containing ten 500 gram – 1 lb. 1.6 oz – Clamshells (Sugraone, Green Seedless, and Red Globe Seeded).
“All three of our grape varieties are Fair for Life certified by IMO Switzerland which guarantees fair wages, good working conditions, and social responsibility at each and every stage of production and throughout the distribution chain,” Posner continued.
The Fair for Life social premiums from the sales of last year’s grapes helped complete a preschool for the children of the worker community. The funds collected from this season will be used to build another classroom and to train primary and secondary teachers in the community.
Awe Sum Organics grapes are also Non-GMO Project Verified. The company says that not only is it committed to outstanding taste and quality, but also doing what’s right for humankind and the environment as a whole.
CANADA - Okanagan Specialty Fruits’ flagship, the non-browning Arctic Apple, is a new frontier for fruit as the first genetically modified apple on the market approved by the USDA. Two varieties are currently available, Arctic® Goldens and Arctic® Grannies, with the ability to showcase all the favorite attributes of apples without the time sensitivity browning brings after being sliced or peeled.
Often referred to as its flagship by Okanagan, the company did not add anything to the product, but instead used biotechnology to suppress the majority of the polyphenol oxidase (PPO), the agent responsible for the browning that occurs when apple cells are ruptured and can damage the benefits from consumption.
The Arctic Granny in particular adds to the Granny’s pre-existing popularity as a slicing apple, making it one that can be on display for coming New Years and football parties without browning on the tray.
As for the Arctic® Golden, Okanagan says that the “Arctic Advantage™” addresses the browning issue currently plaguing Goldens while eliminating the need for warm-packing.
And now the Arctic® brand is preparing to grow. Already growing in Okanagan’s fields are Arctic® Fuji & Arctic® Gala apples, which, once ready, will effectively expand the brand’s reach as far as consumer variety preference and offerings to retail aisles.
“They’re already growing in our field trials, and we’ll be sure to share updates once they’re getting closer to market, so keep an eye on the Find Our Apples section,” the company says on its website, expressing excitement for the future of Arctic® apples.
You can track the growth and apple offerings of this Canada-based grower by going to the Find Our Apples section of its website.
For the latest products influencing the produce industry, keep checking in with AndNowUKnow.
LEAMINGTON, ON – For a company to thrive, it begins with the foundation you lay, and for family-owned, boutique greenhouse grower Orangeline Farms, that is its leadership team. And this team has a mission - ensure each staff member feels valued for their commitment and hard work.
“We are so impressed by the effort being put in by our staff at Orangline Farms. Many have literally never missed a day of work this year – I think that’s a true testament to the culture we’ve created here,” Jordan Kniaziew, VP of Sales and Marketing, said in a press release.
Catering to the ongoing demand for specialty produce, Orangeline is currently focused on its expansion initiatives and is looking to launch more new products in 2016. The company’s popular Zing™! Healthy Food line has grown in popularity and is offered to retail locations across North America with items that include European Runner Beans, Super Sweet Strawberries and a variety of specialty peppers.
None of this would be possible without the dedication of the Orangeline staff, as President Duffy Kniaziew shares.
“As we continue through the holiday season, we want our employees to know that, whatever their job title, we are truly grateful for the work they do each and every day,” he says. “For employers to recognize their staff at every level, especially in this business, it’s just the right thing to do.”
Six staff members were honored with a very special holiday gift that recognizes their continuous dedication to the company throughout the year. One Orangeline team member said it well, “It really means a lot to us, just to know that they appreciate the work that we do. It motivates us to do even more.”
As we move into 2016, we look forward to more growth across the industry and recognizing more teams that help to make that a reality.
HOUSTON, TX – Sysco has appointed Tom Bené as its new President and Chief Operating Officer.
The former Executive Vice President and President, Foodservice Operations will assume his responsibilities on Friday, January 1, 2016. While reporting to CEO Bill DeLaney, Bené will oversee all of Sysco’s business operations and commercial functions, as well as its supply chain organization, according to a press release. It is unclear whether the promotion will put him in a position to eventually to succeed DeLaney, but the Chief Executive was very confident of Bené’s talent as a veteran foodservice distribution executive and remained optimistic of his abilities.
DeLaney complimented Bené on his ability to contribute significantly to the company’s ongoing progress to strengthen the brand after its failed merger with US Foods, praising his leadership skills and consistent results.
He added, “Expanding Tom’s role will provide me with additional capacity to lead the execution of our recently announced three-year strategic plan, work closely with our Board of Directors on long-term strategic opportunities, and further engage with Sysco’s key stakeholders.”
Prior to joining Sysco, Bené held a 23-year career at PepsiCo in a number of positions relating to merchandising, sales, operations, franchise development, and general management. He was ultimately promoted to President of PepsiCo Foodservice before joining Sysco in March 2013 as its Executive Vice President and Chief Merchandising Officer. He was later promoted that same year to Executive Vice President and Chief Commercial Officer, and finally took on his most recent position in January of 2015.