Wed. November 11th, 2015 - by Christofer Oberst

ODESSA, TX – Market Street, a supermarket chain operated by The United Family®, held its grand opening ceremony on Wednesday, touting a new look and exciting changes.

Formerly an Albertsons store, the new Market Street features a revitalized produce section with more than 140 organic or locally grown options. Most interestingly, however, the store’s produce department invites shoppers to “Ask for a Taste,” allowing guests to try before they buy. 

Market Street

Known as the place “where everyday meets gourmet,” the chain provides extensive options for consumers to maintain a healthy lifestyle, as well as everyday items, according to a press release.

Market Street

Robert Taylor, President of the United Family, said that this store will “change the way Odessa guests think about an everyday grocery store.”

Robert Taylor, President, United Family“In the new Odessa Market Street, our guests will find the latest innovations and offerings that are unmatched in the area,” he said. “We are excited to officially introduce our Odessa guests to the Market Street experience.”

A full-service deli department offers a large “grab-n-go” section with salads, specialty cheeses, tamales, pizza, fried chicken, and other hot prepared foods to serve at home or at the store’s dining area.

To help entice healthy-minded consumers, shelf tags featuring “healthy attributes” such as low-sodium, heart-healthy, organic, and gluten-free, as well as the company’s “Dietitian’s Top Pick” program. Registered dietitians are also available to guide consumers through the store on free tours to help guests make healthy choices at checkout.

Market Street

The new Market Street supermarket is located at 4950 E. 42nd Street in Odessa, Texas. This is one unique store format you don’t want to miss out on seeing. The 15 Market Street stores can be found in 13 communities in Texas, including Abilene, Allen, Amarillo, Colleyville, Coppell, Flower mount, Frisco, Lubbock, McKinney, Midland, Odessa, Plano, and Wichita Falls.

Market Street

Wed. November 11th, 2015 - by Melissa De Leon Chavez

IMMOKALEE, FL - Drew Yurko, former financial executive for Sysco’s FreshPoint, has joined Lipman as its new Chief Financial Officer.

Kent Shoemaker, Chief Executive Officer, Lipman Produce“We are fortunate to have someone of Drew’s caliber join our team,” Kent Shoemaker, CEO of Lipman, said in a press release. “His wealth of experience in finance and accounting, along with his deep understanding of operations and our industry, will assist us in continuing our growth strategy.”

Drew Yurko, Chief Financial Ofiicer, Lipman ProduceThat wealth of experience includes nearly 20 years of financial management experience. Before serving more than 11 years as FreshPoint’s CFO, Yurko worked for global manufacturing and technology company Emerson for almost five years.

Along with his executive and managerial experience, Yurko also has an abundance of produce industry knowledge, working in a number of executive financial positions for the Produce Marketing Association, including as its current Treasurer.

Left to Right: Kent Shoemaker, CEO, Gerry Odell, Chief Farming Officer, Toby Purse, Chief Administrative Officer, at a Lipman tomato packing house in Immokalee. (Photo Source: Business Observer/Brian Tietz)

While Yurko is succeeding Toby Purse as CFO, Purse will continue to serve as Chief Administrative Officer for Lipman while expanding his leadership in the farming and packing operations of the company.

According to Lipman, Yurko will be based in its Immokalee office as he begins the next chapter of his career with one of North America’s largest open field tomato growers.

Lipman Produce


Wed. November 11th, 2015 - by Christofer Oberst

WENATCHEE, WA - Roger Pepperl, Stemilt’s Marketing Director, joined AndNowUKnow recently to discuss a brief update on the apple season. Listen to the full interview above, or keep reading for a brief summary of what Roger had to say.

Roger Pepperl, Marketing Director, StemiltWith an earlier crop, retailers need to prepare for a different kind of season this year. Roger suggested a few tips to take advantage of the situation.

First, gala apples, which commanded 32.7% of the apple category, will have to go into bags. Although typically you would see more bulk ads this time of year, there is more bagged material this season. Retailers will also have to look at substitutions for gala apples in the bulk category.

Gala Apples

“Here at Stemilt, we’re proposing putting the Pinata as a replacement to gala in the ads,” Roger tells me. “Last year in the bulk category, Pinata showed a 40 percent increase in sales.”

And because bulk items drive the category, Roger also suggested pushing items like Fujis, Grannies, Honeycrisp, Pink Lady, Braeburn, and Red Delicious.

“Honeycrisp is going to continue to be a real dominating force - it’s going up, limited only by the crop size itself,” Roger continued. “One new item, too, is Pink Lady apple. We see Pink Lady continue to rise. We’re getting higher and higher increases in sales here at Stemilt as our crop gets larger. I think it’s going to be a real winner in the future.”

Pink Lady Apples

For more on the apple crop this season, check out our full interview with Roger above.

Stemilt

Wed. November 11th, 2015 - by Jessica Donnel

ZAANDAM, THE NETHERLANDS – Ahold has announced its Q3 2015 financial results, and with it, further updates on its pending merger with Delhaize.

Dick Boer, CEO, Ahold

In a conference call to investors yesterday, CEO Dick Boer explained, “As we announced in June, the merger will create stronger international food retailer with local brands that have market leading positions in complementary neighboring geographies. Substantial synergies at a trend rate of €500 million a year will lead to significant value creation and we’ll also be able to use strong cash flow generation to invest in future growth and deliver attractive return to shareholders.” 

Dick Boer (L), chief executive of Dutch-based supermarkets operator Ahold, and Frans Muller, chief executive of Belgian supermarket chain Delhaize, shake their hands after a joint news conference(Source: Reuters/Eric Vidal)

Boer added that while the company remains highly focused on running its day-to-day operations, it is making good progress with the integration planning. The transaction is still on schedule for completion by mid-2016, Boer says, and as we’ve previously reported, both he and Frans Mueller will be going together on a number of road shows to meet investors in the coming months. 

The CEO also took a few moments during the investor call to mention the company’s new, millennial-focused banner, bfresh, saying that while its still early, Ahold has high hopes for its effectiveness. 

bfresh

“We have seen nice appetite of our customers in the markets where we are now testing these stores,” he explains. “But you can imagine, if bfresh works, we have an opportunity really in the larger cities to expand. On the East coast, we have opportunities to expand in these larger cities, but it’s too early to give a number on that I would say.” 

Other than the developments in the Delhaize merger and its new bfresh banner, Ahold came through with a strong financial performance in its third quarter, reporting increases in sales, operating income, and net income.

Other highlights from Ahold’s third quarter report include:

  • Group sales up 13.0% (up 1.7% at constant exchange rates)
  • Sales excluding gas up 3.3% at constant exchange rates
  • Underlying operating income increased to €319 million; underlying operating margin at 3.8%
  • Strong free cash flow of €230 million, up €160 million
  • Identical sales in the Netherlands up 4.0%, reflecting positive sales trends at Albert Heijn and in online
  • Underlying sales trends in the United States continued to improve, with identical sales growth of 1.8% excluding gas, adjusted for competitive disruption last year
  • Agreement reached for Stop & Shop to acquire 25 A&P stores in New York 

For more on the upcoming merger, the company’s developing bfresh banner, and more, keep watching AndNowUKnow.

Ahold

Wed. November 11th, 2015 - by Jordan Okumura-Wright

EAST HARTFORD, CT - It’s no secret within the produce industry that the colony count for honey bees a concern.

BioSafe, a family-owned manufacturer of biodegradable disease-control products, has been examining OMRI listed and EPA approved bactericide, OxiDate 2.0, to make sure that it is honey bee safe while still being an effective crop solution for the past six months.

“Here at BioSafe Systems, where sustainable solutions are a top priority, we are constantly striving to solve real world issues that affect our stakeholders, from our customers and growers, to their customers, and in this case, the far reaching effects of colony collapse disorder,” the company said, according to a press release, of its decision to assess OxiDate 2.0’s acute contact toxicity potential.

Conducted by exposing honey bees (Apis mellifera) to direct topical application of OxiDate 2.0, the company was sure to adhere strictly to EPA guideline 850.3020. Overall the assessment was comprised of:

  • A toxicity test totaling in 96 hours
  • Observing the honey bees about four hours after initial dosing
  • Observing the honey bees about 24 hours after initial dosing

During the observations, the company stated it was observing through 96 hours for mortality and clinical signs of intoxication, including ataxia, lethargy, hypersensitivity, etc.

“The conclusions of the study clearly show that BioSafe Systems’ OxiDate 2.0 is non-toxic and completely safe on Honey Bees when crops are sprayed at labeled concentrations and bees are actively visiting the treatment area,” the company said, proudly adding “proven Be Friendly” to their declaration of simply sustainable and always effective.

The exposure to pesticides, as well as bactericides and fungicides, has been linked to the decline in honey bee colonies and is a continued concern for both manufacturers and suppliers.

For a copy of the StillMeadow, Inc. toxicity limit test, visit www.biosafesystems.com.

BioSafe Systems

Wed. November 11th, 2015 - by Jordan Okumura-Wright

WENATCHEE, WA - Following what CMI is calling a successful apple import season, U.S. growers of KIKU® brand apples announced this week that this year’s packing will be starting early to respond to strong and rising retail demand.

Steve Lutz, Vice President of Marketing, CMI

“If you look at the most recent 13 weeks of apple category data, KIKU® rocked the category for retailers,” explains Steve Lutz, Vice President of Marketing for CMI, as he reveals that retail sales data touts KIKU® brand apples as one of the “hot brands” in the apple category. “Among the top 15 apples, only six increased year over year sales. Among those, KIKU® apples had the second highest dollar growth rate at 64%.”

KIKU Apples

Tim Welsh, Chief Horticulturist for Columbia Fruit Packers, confirmed that the KIKU® season will launch early in response to strong retail demand for increased production. As the primary U.S. license holder for KIKU®, Columbia Fruit Packers says the company has aligned with growing partners Applewood Orchards in Michigan and Rice Fruit Company in Pennsylvania to help ramp up production quickly for retailers. 

Tim Welsh, Chief Horticulturist, Columbia Fruit Packers“All three licensed producers of KIKU® brand apples increased plantings based on strong feedback from retailers and consumers,” said Welsh. “It’s been tough to keep KIKU® on the shelves. Now with the 2015 harvest, total KIKU® production will have doubled from just two years ago.”

John Rice, President of Rice Fruit Company in Pennsylvania said in a press release that he is not surprised by KIKU®’s success. 

John Rice, President, Rice Fruit Company“Our family has been growing apples here in Pennsylvania for seven generations,” explained Rice. “We grow all kinds of apples and we’ve never seen anything like KIKU®. It’s simply the sweetest, best tasting apple we have ever grown.”

Scott Swindeman, Vice President, Applewood OrchardsScott Swindeman, Vice President of Applewood Orchards, Inc. in Michigan, says that as KIKU® trees mature, quality has continued to improve. With growers in Washington, Michigan, and Pennsylvania all reporting that this is one of the finest crops of KIKU® yet, he says, color, condition, and eating quality are excellent, and Applewood Orchards is excited about starting the season in time for the holidays.

Lutz continued by saying that apples like KIKU® are vital for retailers in continuing to respond to changing consumer purchase behavior while building a stronger apple category. 

KIKU® Brand Apples

“Nearly all of the major apple varieties had dollar declines at retail last year despite the large harvest” he added. “In a way, KIKU® is similar to Honeycrisp. The unique flavor profile allows for stronger pricing while trading consumers up to a more expensive purchase.”

This will in turn drives sales dollars for retailers, Lutz finished explaining in the press release, while bringing consumers back to the store sooner because of the outstanding eating experience.

CMI

Wed. November 11th, 2015 - by Christofer Oberst

WASHINGTON, D.C. – It’s that time of year again, and I’m not just talking about the holidays. The United Fresh Produce Association is asking the industry to submit their nominations for the Retail Produce Managers Awards.

Why should you participate? Keep reading to find what Raley’s Greg Corrigan and Dole’s Howard Roeder have to say about the program.

Submit your nomination before January 5, 2016 to make sure your top retail produce manager can be recognized before the industry. Click the green button below to begin the nomination process.

Nominate a Retail Produce Manager

Greg Corrigan, Sr. Director Produce and Floral, Raley's & Chairman of the United Fresh Retail-Foodservice Board

“This program is a powerful way for retailers to recognize their outstanding produce managers for their hard work and commitment to the industry,” said Corrigan, Raley’s Senior Director of Produce and Floral and Chairman of the United Fresh’s Retail-Foodservice Board. “The winning produce managers are recognized as leaders in their field and excellent representatives of the produce industry for our customers. We have made this a very important aspect of staff development at Raley’s.”

Howard Roeder, President, Dole Fresh VegetablesRoeder, the President of Dole Fresh Vegetables, added, “Dole, like all members of United Fresh that grow and farm fresh produce, wouldn’t be successful without the knowledge, passion, and day-to-day dedication of the produce manager. They stand on the front line of our industry and represent our products to the shopper. For that we are grateful.”

The award honors top retail produce managers for their commitment to fresh produce, innovative merchandising, community service, and customer satisfaction, according to a press release.

2015 Retail Produce Manager Award Winners

Still not convinced? Check out these 3 reasons why you should submit your nomination today:

Produce Consumption Continues to Rise

Produce managers obviously play a significant role in helping to increase retail sales of fresh produce, but did you know that, according to the United Fresh FreshFacts® on Retail Q2 2015 report, seven of the top 10 fruit categories and six of the top 10 vegetable categories have enjoyed increased volume sales since Q2 2014? Way to go!

Retail Produce Managers Hold Your Brand in Their Hands

Produce managers ensure that your in-store displays are properly stocked and maintained. When this job is done well, it’s a reflection on the retail banner, the produce brand, and the produce manager themselves.

Consumers Have Questions. Produce Managers Have Answers

As the store expert on produce, produce managers are prepared to engage consumers by presenting new or seasonal fruits and vegetables, offering preparation tips, and providing recipes and SKUs from other departments that aid in the sale of produce items.


So, what are you waiting for? January is just around the corner. Click here to nominate a retail produce manager today.

United Fresh

Wed. November 11th, 2015 - by Melissa De Leon Chavez

CINCINNATI, OH & MILWAUKEE, WI - Kroger is cracking into yet another new market as the company continues to widen its footprint in the retail sector. This time, however, the chain has acquired the established Roundy’s banner rather than putting new stores in the state of Wisconsin.

Rodney McMullen, Chairman & CEO, Kroger CO.

In a one-on-one interview with CNBC, Rodney McMullen, Kroger's Chairman and Chief Executive Officer, McMullen addressed the decision to buy into the market and build from there with the viewpoint that Roundy’s is already established in the market share.

“Part of our strategy in going to a new market is fill in, we think this is a much more efficient way to go into a new market and [Roundy’s] really has a great market share already.”

Today’s TMJ4 reported that though Kroger is acquiring Roundy’s for about $178 million, it valued the deal at around $800 million, including debt. Kroger stated in the release that it will pay approximately 65 percent premium over its closing price for each share.

McMullen said in a press release that he was delighted to welcome Roundy's to the Kroger family. "With a team of 22,000 talented associates, outstanding store locations, and a shared commitment to putting customers first, we are excited about Roundy's future growth."

With this latest addition, Kroger inherits 151 stores and 101 pharmacies in new regions, including Milwaukee, Madison, Northern Wisconsin, under the Pick 'n Save, Copps, and Metro Market banners, plus two Wisconsin-based distribution centers.

Kroger also stated that this transaction will add an innovative store format in the Chicago area, where Roundy's operates 34 stores under the Mariano's banner. Roundy's had revenues of nearly $4.0 billion for fiscal year 2014.

McMullen said that Kroger admires what President and CEO Robert A. Mariano has done with the Mariano’s banner in Chicago, and that together with Kroger’s scale and strong financial position they will be able to both reinvest in Roundy’s Wisconsin home and Chicago.

Mariano's (Image Source: Gilbert R. Boucher II, Daily Herald)

“[Mariano] has created an urban format that is resonating with customers and we expect to apply Roundy's experience to our stores in urban areas around the country,” McMullen said, adding that any merger Kroger goes into involves both parties bringing something to the table.

The feeling appears to be a mutual one.

Robert A. Mariano, President and CEO, Roundy's"We are excited about becoming part of The Kroger Co.,” Mariano said, explaining that Kroger's scale, knowledge, and experience will make Roundy’s a more formidable competitor in the marketplace by allowing it to accelerate the strategic initiatives it has invested in previously. “This is a great win for our customers, communities, employees and our shareholders, and I personally look forward to continue to exceed customer and employee expectations.”

The Boards of Directors of both companies agreed unanimously to the terms, stating that the transaction is expected to close before the end of 2015's calendar year.

Kroger Co. Roundy's

Tue. November 10th, 2015 - by Melissa De Leon Chavez

CHILE - Chilean citrus saw powerful export North American numbers for 2015, with strong retail and consumer demand contributing to a record season for the country.

Juan Enrique Ortúzar, Chairman, Chilean Citrus Committee“We’ve had an incredible season in North America,” Juan Enrique Ortúzar, Chairman of the Chilean Citrus Committee, stated in a press release, adding that, despite strong competing supplies from South Africa, Australia, Uruguay, and Peru, Chilean citrus obtained double digit volume increases and strong market conditions across all commodities.

Chile Citrus Orchards

According to the committee, mandarins in particular saw a 54% jump, from 27,354 tons to 42,124 tons, in North America, which Managing Director for the Chilean Fresh Fruit Association Karen Brux attributed to an important shift within the citrus industry.

Karen Brux, Managing Director, Chilean Fresh Fruit Association“With the significant investment that’s been made in the marketing of mandarins, in particular, there is now strong year-round demand for easy peelers,” Brux, who directed Chilean Citrus’ promotion campaign, said. “Despite the more than 50% increase in mandarin volume out of Chile, we still had to cancel some promotions due to tight supply. This clearly demonstrates continued growth opportunities for Chilean citrus in North America.”

On a global scale, Chilean citrus export figures showed easy peelers at 37%, oranges 33%, and lemons 30%.

Several categories saw a jump overall, with increases as follows:

  • Late Mandarins - 57%
  • Lemons - 43%
  • Oranges - 18%
  • Clementines - 11%

As for what’s next, Ortúzar added that more growth is to come.

Oranges from Chile

“We foresee 20% annual growth in combined volume of clementines and mandarins for at least the next three years, so total volume will exceed 100,000 tons in the short term,” he said, adding that new citrus varieties continue to be evaluated as the Chilean citrus industry seeks to drive the category forward.

While total citrus exports from Chile saw a 30% increase over last season, shipping upwards of 204,000 tons total of navels, lemons, and easy peelers like clementines and mandarins, North America remains Chilean citrus’ primary destination, taking 81% of export volume between May and October, 2015.

Chilean Citrus

Tue. November 10th, 2015 - by Christofer Oberst

BELLINGHAM, WA – Haggen may have already put dozens of stores up for auction this week, but more may soon be on the way.

The company is now moving to sell all 32 of its most valuable, or “core,” stores, including at least 16 of its original locations. These were the so-called profitable stores that Haggen announced it would reorganize around, citing strong brand reputation in their respective areas. 

Haggen

A court document requesting a hearing to seek approval of this latest sale reads as follows: “As part of the Debtors’ overall sale strategy, the Debtors have decided, in their business judgment, to sell all of substantially all of the Assets – which collectively represent the Debtors’ most valuable store locations – in order to further maximize recoveries to the Debtors’ estates, their creditors, and all parties in interest.”

A hearing is to be scheduled on December 4th, with the auction to be held on January 8th.

As we previously reported, it was announced that Haggen would sell 28 California and Nevada stores to Smart & Final LLC and 8 California stores to Gelson’s Markets in a separate agreement.

No further announcements have been made in regards to the auction proceedings currently happening this week.

Below is a list of the “core” stores that Haggen would put up for auction early next year:

Haggen

Stay tuned to AndNowUKnow as we continue to follow Haggen’s auctions in the days ahead.

Haggen