Mon. November 23rd, 2015 - by Christofer Oberst

BAKERSFIELD, CA – Rio King and RIOblanco, two of Chile’s top grape producer-exporters, are joining Sun World’s family of marketer licensees.

David Marguleas, Executive Vice President, Sun World

Both companies will add “noteworthy supply and distribution capacity” to Sun World’s proprietary branded grape program, said Executive Vice President, David Marguleas.

“As a result of their involvement – and the tremendous capabilities of our existing Chilean licensees – retailers and consumers around the world will have increased access to Sun World branded grapes,” Marguleas said.

Rio King and RIOblanco

Rio King is a fully integrated export company with farming operations on 3,700 hectares in Chile and Peru, importing offices in USA and China and a first-class worldwide customer network.

RIOblanco is a family-owned company focused on growing, packing, and exporting premium fruit primarily from its own farms.

The two new marketers have been granted a license to distribute fruit from new varieties developed by Sun World and to use Sun World’s brands, including MIDNIGHT BEAUTY®, SCARLOTTA SEEDLESS®, AUTUMNCRISP®, ADORA SEEDLESS®, and SABLE SEEDLESS® in the marketplace, according to a press release. 

Sun World

Both companies join Sun World’s existing portfolio of marketer licensees, including Subsole, Unifrutti, Dole, Compania Frutera Santa Maria, Gesex, Santa Elena, and Exser.

Sun World

Mon. November 23rd, 2015 - by Jordan Okumura-Wright

SAN ANTONIO, TX – NatureSweet is ushering in the holidays with its recently debuted, limited-edition winter packaging.

The new package, available for the company’s Cherubs®, Glorys™, and SunBursts®, features a cheerful snowflake pattern and festive gold labels to deck the produce aisles with some holiday cheer this year.

NatureSweet

In addition, NatureSweet will ship out colorful three-case shipper displays and mini pallet wraps also featuring a festive, seasonal look. POS cards and recipe tear pads will also be included to catch the eye and encourage shoppers to add NatureSweet tomatoes to their seasonal menus, according to a press release.

Michael Joergensen, Vice President of Marketing, NatureSweet“We hope that our consumers revel in the spirit of the season with our tomatoes gracing their tables, whether it’s set for a special family gathering or a simple meal on a cold winter night,” said Michael Joergensen, NatureSweet’s Vice President of Marketing.

This promotion will last until December 18, 2015.

NatureSweet

Hand-picked year-round and brix-tested for sweetness, NatureSweet gives each of its greenhouse-grown tomatoes extra love and attention to ensure consumers remain satisfied regardless of the time of year.

Don’t miss this latest holiday offering from NatureSweet!

NatureSweet

Mon. November 23rd, 2015 - by Christofer Oberst

YUMA, AZ – Though the unseasonably warm weather and the rain provoked a quicker end to the season in Salinas, the cooler weather in Yuma is resulting in a slower crop this time of year. As resilient as ever, however, growers are tackling these challenges head-on to try and meet the holiday pull.

Nighttime temperatures in Yuma lately have been hovering in the low thirties, with daytime temperatures in the seventies. The high winds that growers are currently experiencing will likely bring cooler weather and the possibility of freezing temperatures, which tends to slow growth and could possibly create a gap.   

Nevertheless, quality continues to improve for items such as lettuce, celery, broccoli, cauliflower, and more. Growers are trying to stay as optimistic as they can with the holidays quickly approaching and volumes still being on the light side, as expected.

Yuma Market Update

“Volumes look to be very similar to last year,” C.R. Waters, Desert Operations Manager at Duda Farm Fresh Foods, tells me. “Availability will be tight for the next couple of weeks as volume will be lighter than expected due to weather.”

Duda Farm Fresh Foods has just started harvesting and is still planting. Iceberg lettuce started on November 2, while romaine/mix leaf started November 9. The harvesting is about ten days ahead of schedule right now.

“We are close to planned volumes,” he continued. “We will have promotable volumes of celery going into the holidays and New Year.”

Yuma Market Update

Doug Classen, Sales Manager with The Nunes Company, the shipper of “Foxy” brand fresh produce, had a similar sentiment with the weather in Yuma so far.

Doug Classen, Sales Manager, The Nunes Company“We are nearly complete with our transition to Yuma. We are seeing multiple weather-related challenges on the crop that have affected yield, and therefore, markets across all categories,” said Classen. “We expect these challenges to continue until the first of the year under the current weather conditions and holiday pulls.”

It’ll be a bumpy road the next few weeks with Thanksgiving almost here, but the moral of the story is to hang tight and get those orders in. Stick to AndNowUKnow for any further updates as we start heading into December.

Duda Farm Fresh Foods Foxy Produce

Mon. November 23rd, 2015 - by Jessica Donnel

SPOKANE, WA - It looks like the Cold Train versus Burlington Northern Santa Fe (BNSF) Railway saga will continue a little bit longer, with Cold Train now adding additional charges to its original $41 million lawsuit.

Filed in a United States District Court in Spokane, WA, Steven Lawson, the former President and CEO of Cold Train, LLC., and Mike Lerner, the Managing Member of Cold Train, LLC., this week have unveiled details about what they say are even more significant issues about BNSF actions, which caused Cold Train’s downfall. 

Cold Train Carriers

Allegedly, and according to the amended lawsuit, BNSF engaged in “unfair and deceptive trade practices,” including but not limited to:

  • Requiring Lerner, Lawson, and Cold Train, LLC. to agree to a 95% carriage requirement—effectively prohibiting Cold Train from using other rail carriers.
  • Deceptively causing a significant slowdown in BNSF’s service schedules on its Northern Corridor line including the termination of an existing “Z train” service and replacement with a slower “Q train” service.
  • Deceiving Lerner and Lawson into agreeing to a 72-hour service from Quincy to Chicago, before abruptly dropping its on time percentage (OTP) for the shipment to 3% by April of 2014. Cold Train’s business plan relied on allowing fresh produce to be directly loaded into a refrigerated container, delivered by truck to the intermodal terminal at the Port of Quincy, and loaded onto an eastbound train the same day.
  • Persuading Lawson and Lerner to sell the Cold Train business to Federated Railways, Inc. (Federated) with promises that the sale would allow for further expansion of its business and traffic on the BNSF line from Quincy, WA to Chicago, IL.
    • The sale was worth approximately $32 million at closing and another $10 million from the ongoing operations, and also and was contingent upon Lawson accepting ownership in the new entity, a multi-million dollar cash payment and a long term employment contract to remain as President & CEO of new entity, Federated Cold Train. The total benefit to Steven Lawson personally was in excess of $21 million, separate and apart from Cold Train.
  • BNSF continued to encourage Lawson, Lerner and Federated to proceed with the sale and promised another 5 year term of the existing Z train service at Quincy, WA. Immediately thereafter, as a direct result of the encouragement, Federated provided Cold Train a $1.25 million capital infusion based solely on that meeting and then publicly announced that it was acquiring Cold Train.

According to the amended lawsuit, BNSF informed Cold Train that it was cancelling the 72-hour service and substituting a new 125-hour service nearly doubling BNSF’s rail transit time. This caused Cold Train’s costs of equipment, fuel and other costs to double, and caused many customers, especially fresh produce shippers, to look for other transportation service options.

BNSF’s business decision to direct its resources away from Cold Train resulted in millions of dollars in operating losses and millions of dollars in capital investment losses, they say, and as a direct result of the service change and BNSF’s refusal to revise its wrongful 95% carriage requirement despite promises to the contrary, Federated withdrew its offer to purchase Cold Train. Lawson and Lerner say this resulted in the two walking away with nothing from a business that had been worth over $40 million prior to April 24, 2014.

Furthermore, the termination of the Z train service left numerous Washington State residents unemployed as well as many Washington State companies and other secured and unsecured creditors with significant receivables and debts.

The amended lawsuit states that BNSF’s actions were deliberate, and contrary to its known promises and representations to Cold Train, Mike Lerner, and Steve Lawson.  

Currently, several parties are challenging the original BNSF settlement with Great Western Bank in a Kansas Court, but for more updates on this lawsuit as they’re unveiled, check back with AndNowUKnow.

Cold Train

Mon. November 23rd, 2015 - by Christofer Oberst

WENATCHEE, WA – In the newest Stemilt-O-Graphic, retail scan data from the month of October reveals that retail prices for the Honeycrisp apple have risen when compared to the same time last year. Retails are expected to increase for this popular item due to escalating prices driven by consumer demand, according to Stemilt’s Marketing Director, Roger Pepperl.

Roger Pepperl, Marketing Director, Stemilt

“Consumers love [Honeycrisp] and consistently show they are willing to pay a higher price for its unique flavor and crunch,” he said in a press release. “Going forward in 2015, retailers must continue to highlight Honeycrisp on apple displays but promote other key varieties, including Gala, Fuji, Red and Golden Delicious, Granny Smith, and Pink Lady®, in order to boost the entire category.”

Stemilt Honeycrisp Apples

Below is a brief summary of some of the other insights provided in Stemilt’s infographic. Scroll down for the full image.

  • Apples made up 7.5% of total produce department dollars from September 27 to October 24, down from 8.1% the year prior
  • Average weekly volume in the U.S. was 2,291 pounds from September 27 to October 24, down from 2,464 pounds the year prior
  • Gala led the category, followed by Honeycrisp, Fuji, Red Delicious, Granny Smith, McIntosh, Golden Delicious, SweeTango, Ambrosia, and Pink Lady.

For a full look at the infographic, click the image below.
Click on the image above to see the full Stemilt-O-Graphic

To help boost the category even further, Pepperl also recommended that retailers focus on multi-variety apple promotions for the months to come.

While bulk apples should be the focus of promotions, Pepperl said that Stemilt has two bag items that have proven to sell at retail. These items include Stemilt’s 3 lb. Lil Snappers pouch, which offers families a great value following holiday breaks, and 5 lb. Fresh Blenders, which are designed to merchandise health and wellness by creating a juicing/blending destination in the supermarket.

Stemilt Gala Lil Snappers

He also added that Gala Lil Snappers are an ideal bagged item to promote given the smaller sizing on the first-to-harvest apple this season.

There are still plenty of apple selling months left to go. Stay tuned as we continue to follow the season ahead.

Stemilt

Mon. November 23rd, 2015 - by Melissa De Leon Chavez

GREENSBORO, NC – The Fresh Market's CEO Rick Anicetti addressed investors on an earnings call to go over a detailed turnaround plan after the company's third quarter results for 2015 were revealed.

As we previously reported, a series of alterations that included store closures and leadership changes impacted a tumultuous Q3 for the chain.

Anicetti, despite having only been with The Fresh Market for a few months, brings 35 years of foodservice and retail experience to the position and has been familiar with the chain since 1996.

Rick Anicetti, CEO, The Fresh Market“The Fresh Market is still loved by millions of shoppers, the company’s overall value proposition has been challenged in today’s dynamic food retail shopping environment,” he said during the November 19th earnings call. “There are many more competitors across the food retail spectrum, from specialty to conventional supermarkets, that have narrowed the gap with The Fresh Market on a number of fronts.”

With that, and keeping in mind those latest challenges, the new CEO outlined a four-part turnaround plan to keep The Fresh Market in the retail sector that involve further improvements in fresh, reduction in shrink, and investment in store format changes.

These steps of focus and improvement include:

  • Significantly improving operating effectiveness.
  • Stabilizing and beginning to grow comp store sales.
  • A greater emphasis on quality and freshness to further differentiate stores from the competition.
  • Own a greater share of guests’ minds and compete more effectively with the “noise of the marketplace” and improve customer engagement.

The majority of bringing this plan to fruition, according to Anicetti, will require investment and time (about three to five years depending on the measures taken). Already he stated that The Fresh Market has worked to identify and implement actions to significantly reduce shrink in-store as well as supply chain.

Besides setting itself apart with freshness and quality in its perishable departments, the retailer is looking to take a phased approach to reinventing its existing center store, looking into remodels beginning in 2017, with ongoing innovation as as the chain evolves for the future.

“We will improve our value perception with customers by reinvesting in service, merchandising, and price. We expect that the net results of these future operating efficiencies and value investments will translate into increased comp store sales and earning.”

The larger steps are slated to begin in 2016, so stay tuned to AndNowUKnow as we continue to report on the retail market and its influence on the produce industry.

The Fresh Market


Fri. November 20th, 2015 - by Melissa De Leon Chavez

ATLANTA, GA - Frieda’s Specialty Produce, a 53-year-old pioneer in expanding the U.S. market’s perception of “fresh,” has rebooted its label to better reach the newest generation of consumers.

Karen Caplan, President, CEO, and second generation to the Frieda’s company, took time out of her busy Fresh Summit schedule to tell us about the decision that fueled the change.

Karen Caplan, President and CEO, Frieda’s Specialty Produce“As you know, we’re a 53-year-old specialty produce company, and we thought it was time to look at how we can resonate with today’s shoppers,” Karen tells us, adding that the company is very excited about the launch. “Within the next two to three months we will have converted all our products to the new brand.”

Karen added that, besides a fresh label, the company is stepping outside of its very purple comfort zone to incorporate more bright colors as well.

“You notice that even though purple is our ‘home color,’ we’ve actually brightened it up quite a bit with some bright, fun colors.”

As we previously reported, Frieda’s announced that it was unveiling a new look and a new message after finding that millennials crave new food experiences and favor brands that engage them, and wished to showcase its fun, quirky culture.

Karen was also very excited about the screening of Fear No Fruit, a documentary based on the pioneering efforts made by her mother and company founder, Frieda Caplan, in both the expansion of the produce category and for women and the produce world.

“The documentary that was made about my mom and our family business was showing this very weekend (Oct 23-25) at the Carmel Film Festival. We’re very, very excited to have the story told of the woman who introduced the kiwifruit to America.”

For reasons why you, your employees, and your friends should watch this important film about an influential chapter in produce history, see this previous feature on Fear No Fruit from AndNowUKnow’s sister publication The Snack Magazine.

To see the full interview with Karen, watch our brief 57 second video above. And, as always, keep checking in with AndNowUKnow for all the latest on what is influencing the ever-changing produce industry.

Frieda's Specialty Produce

Fri. November 20th, 2015 - by Jessica Donnel

SALINAS, CA - The results of this year’s Ag Against Hunger fundraiser “The New York Express” are in—Salinas companies and S. Katzman Produce earned a record $30,000 through New York’s Hunts Point Market.

Grower/shippers in the Salinas Valley donated pallets of fresh vegetables, that were then sold by S. Katzman Produce at New York’s Hunts Point Market. Sales of the produce totaled $14,720, with an additional donation by Katzman of $15,280, and all proceeds went to benefit Ag Against Hunger.

Katzman Produce General Manager Mario Andreani, left, and buyer John Guerra, check out cartons of fresh produce from Salinas Valley shippers.

“It’s a tremendous opportunity to work with the grower/shipper community in the Salinas Valley to help raise money for a truly worthwhile organization like Ag Against Hunger,” said Stephen Katzman, President of S. Katzman Produce. “Their goal of helping to end hunger by providing fresh, healthy surplus fruits and vegetables from local farms to food banks and schools is inspirational for all of us in the produce business.”

According to a press release, Salinas companies that donated fresh vegetables to the cause included: 

  • Steinbeck Country Produce
  • Mann Packing
  • Taylor Farms
  • Tanimura & Antle
  • The Nunes Company
  • Dole
  • Ocean Mist

Transportation of the donated produce and the cost of freight services were provided by C.H. Robinson.  

Lynn Fignone, Executive Director, Ag Against Hunger. Photo via The Californian.“Thank you just does not seem adequate for what not only our produce partners, C.H. Robinson and S.Katzman Produce have done for Ag Against Hunger with this fundraiser,” said Executive Director of Ag Against Hunger, Lynn Figone. “The generosity is so amazing and inspiring. I would also like to thank Mr. Katzman for his very generous donation to our organization, we are so grateful for his support to help us continue to forward our mission.”

For the last 25 years, Ag Against Hunger has worked with growers, shippers and processors in Monterey, Santa Cruz and San Benito Counties to channel fresh, healthy surplus produce to food banks, food assistance programs, and schools. The organization currently services 21 food banks within California, 4 food banks throughout the West coast, and participates in the More Produce in Schools program.

Ag Against Hunger S. Katzman Produce

Fri. November 20th, 2015 - by Christofer Oberst

GREENSBORO, NC – Shares in The Fresh Market were on a slump shortly after the specialty grocer reported weaker results in its third quarter financial report.

The company’s stock slid approximately 4% to $23.23 after it reported a decline in sales for its established stores. Store closures and leadership changes also had a negative effect on its quarterly performance.

Rick Anicetti, President and CEO, The Fresh MarketRick Anicetti, The Fresh Market’s newly appointed CEO and President, was optimistic in light of these results, noting that the company’s brand has “enormous untapped potential.”

“With the holiday season fast approaching, we are making changes as quickly as prudently possible to our productivity, price optimization, and brand differentiation to help stabilize traffic trends and drive sales during this key shopping period,” he said in a press release.

Anicetti continued by saying the management team and the Board of Directors are “simultaneously moving forward aggressively with a number of initiatives to strengthen the company’s foundation, increase productivity, drive store traffic, and regain operating momentum.”

The Fresh Market

The news comes shortly after rumors emerged that The Fresh Market was considering a potential sale in mid-October. Just a few days later, the company announced that it is currently conducting a strategic and financial review of the business, which could result in The Fresh Market moving forward as a standalone company, a capital structure optimization, or a sale of the company or other business combination. No further update was given regarding the progress of the review in the report, however.

Though its third quarter results may seem bleak, it’s clear that the company is still looking to expand the business. The Fresh Market currently has leases signed for 24 new stores, expected to open during or after fiscal 2015. During its third quarter, the company opened six new stores, including two stores in Florida, and one each in South Carolina, Georgia, Alabama, and Connecticut. As of October 25, 2015, The Fresh Market operated 180 stores in 27 states.

The Fresh Market

In its third quarter of 2015, The Fresh Market reported that its sales increased 3.3% to $433.1 million. Comparable store sales, however, decreased 3.7% to $386.5 million.

Other highlights from the third quarter include:

  • Adjusted EBITDA was $37.5 million, compared to $39.1 million in Q3 2014. Adjusted EBITDA for Q3 2015 was 8.7% of sales, compared to 9.3% of sales in Q3 2014.
  • Gross profit increased 4.3%, or $5.9 million, to $144 million, compared to Q3 2014. Gross margin was 33.2%, compared to 32.9% in Q3 2014.
  • The company generated $28.1 million in cash flow from operations during Q3 2015, compared to $30 million in Q3 2014. The company ended the quarter with a cash balance of $37.3 million.

The Fresh Market has been facing increased pressure from competitors, but what can we expect to see from this “strategic review” and will Anicetti’s proposed changes be enough to turn things around in the fourth quarter? We’ll have to wait and see. Stay tuned to AndNowUKnow as we continue to follow any further updates.  

The Fresh Market

Fri. November 20th, 2015 - by Jordan Okumura-Wright

CHELAN, WA - It’s that time of year again, and with holiday feasts on their way, Chelan Fresh has offered a solution in its newest installment of its Healthy You in One Minute monthly video series.

Chelan Fresh's New Healthy You in One Minute Video

Debuted just last month, Healthy You is a website that offers visitors creative ways to keep their family’s healthy and nourished. In its latest video, Chelan Fresh shows you Thanksgiving recipe ideas that highlight fruits and vegetables while being perfect for gluten-free, nut-free, dairy-free, and vegetarian diets. You can watch the entire video at the link below.

Healthy You in One Minute Thanksgiving Video

Chelan Fresh's Autumn Skillet Roast

Beyond the video, Chelan Fresh’s Healthy You in One Minute website offers full recipes for Thanksgiving recipe’s like Raw Vanilla and Pear “Cheesecake" and Apple Pumpkin Muffins, as well as a link to receive Chelan Fresh’s complimentary Thanksgiving cookbook. Sign up to receive the cookbook at the link below.

Chelan Fresh' Thanksgiving Recipe Cookbook

Healthy You in One Minute Thanksgiving Cookbook

For all this and more, check out the Healthy You in One Minute website.

Chelan Fresh Healthy You in One Minute