WASHINGTON, DC - The U.S. Department of Agriculture (USDA) recently imposed sanctions on four produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

Direct from the USDA Agricultural Marketing Service:

These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA.

The following businesses and individuals are currently restricted from operating in the produce industry:

• Marlon Abarca, doing business as New Water Co., operating out of Rancho Cucamonga, California, for failing to pay a $13,248 award in favor of a Texas seller. As of the issuance date of the reparation order, Marlon Abarca was listed as the sole proprietor of the business
• J. Mendez Produce, operating out of Los Angeles, California, for failing to pay a $2,000 award in favor of a California seller. As of the issuance date of the reparation order, Jose Mendez was listed as the sole officer, director, and stockholder of the business
• Global Import With MK, operating out of Atlanta, Georgia, for failing to pay a $36,032 award in favor of a Texas seller. As of the issuance date of the reparation order, Mikael Fede was listed as the sole member of the business
• Bonimex Produce NYC Corp., operating out of Woodside, New York, for failing to pay a $1,536 award in favor of a New York seller. As of the issuance date of the reparation order, Rene Cortes Alonso and David Alonso were listed as the members of the business

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders, may not be employed by or affiliated with any PACA licensee without USDA approval.

By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

For contact information, and to read the release in its entirety, click here.

SAN FRANCISCO, CA - Texas-based Brothers Produce is on track to continue its foodservice prowess with this latest announcement. GrubMarket recently completed the acquisition of the distributor, a move that strengthens the company’s position.

"Over 40 years ago, I had a dream to build a reputable produce business founded on the principles of taking exceptional care of the customers and hard-working employees who helped us achieve our success. Today, Brothers Produce is one of the most powerful brands in the fresh produce industry, and we are thrilled to join GrubMarket to take our business to the next level,” Martin Erenwert, Chief Executive Officer, Brothers Produce, noted. “Mike and his team clearly understand our vision, and GrubMarket is one of the fastest-growing, most recognized food companies in the entire country. I feel great knowing that being a part of GrubMarket will allow us to preserve our brand and history while creating a new growth path through vertical integration and technological innovation."

According to a press release, Brothers Produce currently operates three distribution centers across Texas which allows it to service over 6,000 customers across Texas, Louisiana, Oklahoma, and Mississippi.

The impressive scale and efficiency of Brothers Produce's distribution operation enable it to ship over ten million cases of food every year. It was founded in the 1980s and has since grown to an operation with an extensive fleet of over 200 vehicles spanning state-of-the-art refrigerated trucks, vans, and trailers designed to preserve product freshness during transit.

"Brothers Produce has a sterling reputation in the Texas fresh produce ecosystem, and it is simply incredible how the business grew from a single van operation over 40 years ago to a multi-generational family business doing hundreds of millions of dollars in annual sales today,” added Mike Xu, CEO of GrubMarket. “Martin, Brent, and the outstanding team at Brothers Produce have truly built a strong and impactful fresh produce business, and we respect their focus on delivering stellar customer service as well as their strong commitment to food safety standards throughout their operations. [...] This acquisition enables GrubMarket to further strengthen our presence across Texas and the Southwestern U.S. We are excited to welcome the Brothers Produce team to the GrubMarket family."

After the acquisition, the business will continue to be managed by its current experienced, mission-driven, and service-oriented leadership team led by Martin and his son, Brent Erenwert, who runs the Houston division.

For more information, click here.

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OXNARD, CA - Just in time for summer grilling, Westfalia Fruit is debuting a 100 percent pure avocado oil, available at select retailers in the United States soon, including online. The avocado oil market is projected to see steady growth driven by a variety of health and wellness trends, and Westfalia is responding.

"Quality and authenticity are crucial," said Raina Nelson, President and Chief Executive Officer. "We are thrilled to introduce the first avocado oil with a purpose—to do good. Our dedication to actionable sustainability spans decades. We use the flesh of the avocados and return the seeds and skins to the orchards for soil conditioning and mulch. Our entire process, from beginning to end, supports zero waste and carbon footprint reduction initiatives."

The oil will be available in three flavors, garlic, as well as lemon, available in 250 ml recyclable glass bottles, and 500 ml bottles for the plain avocado oil.

The company also partnered with CIRT (Can I Recycle This?), the first among the fresh produce industry, in order to give shoppers the ability to check the recyclability of the bottle per zip code. This is done through a convenient QR code found on the label.

"We’re called the Avo Experts for a reason," said Zac Bard, Business Development Executive. "It has everything to do with our years of experience, dedication to quality and innovation, and incredible research and development investments. From this, we are also avocado oil connoisseurs and have been making avo oils for over 20 years with input from edible oil specialists."

According to a release, avocado oil’s high smoke point of 500 degrees Fahrenheit makes it an ideal oil for grilling, baking, and any high-heat cooking. Additionally, consumers are drawn by the oil’s healthy fats and antioxidant benefits, as well as its skin and hair care potential.

"This specialized methodology ensures a pure flavor profile by using only the pulp," Bard added. "It makes for a clean and premium product, and how we create it is unique to Westfalia. Avocado is a fruit, so it makes sense that it should be handled a bit differently, and we test every batch for quality and purity."

Avocado oil has a two-year shelf-life and is recommended to be stored away from light and heat.

Check back with AndNowUKnow as we continue to share every beat of the industry.

MODESTO, CA—The Jim Pattison Group has acquired the Save Mart Companies, a transaction which also includes its Lucky and FoodMaxx stores. According to The Modesto Bee, Save Mart will continue to call its home base Modesto, California, with business proceeding as usual and no planned changes to its employees or current management.

“This acquisition supports our group’s desire to continue our growth in the retail food business,” Jim Pattison President Ryan Barrington-Foote said in the publication.

Just a couple of years ago, Save Mart Companies revealed that it had been acquired by private equity firm Kingswood Capital Management.

As a diversified holding company operating primarily in the United States and Canada, The Jim Pattison Group accounts for diverse operating divisions, including agricultural equipment, food and beverage, entertainment, exporting, financial, real estate industries, and more.

As of 2022, when this previous acquisition took place, The Save Mart Companies was comprised of roughly 200 stores across California and Northern Nevada operating under the banners of Save Mart, Lucky California, and FoodMaxx. The terms of the Kingswood transaction were not disclosed. Kirkland and Ellis served as the legal advisor to Kingswood.

As consolidation continues to occur across the retail landscape, keep checking back with AndNowUKnow for the details of the day.

IMMOKALEE, FL - With the organic purpose honed in on conscious consuming, it makes sense this would extend to packaging as well. As the Organic Produce Summit (OPS) approaches, Lipman Family Farms will be showcasing new offerings housing its organic items to accomplish a complete package—pun intended—of sustainability.

“The pack includes an eco-friendly band wrap intended to replace traditional plastic flow wrap trays for organic cucumbers. This plastic-free packaging solution is environmentally responsible and fully recyclable, aligning with sustainable practices,” Morgan Stuckert, Marketing and Communications Manager, shares. “Its design incorporates a tension wrap mechanism that securely holds the organic cucumbers in place, ensuring they remain stable and undamaged on the shelf. The packaging not only prioritizes functionality and sustainability, but also enhances the product's presentation with an attractive, eye-catching appearance.”

The new packs are available for a variety of products, including organic cucumbers and long crinkle peppers. Designed to accommodate different customer preferences and needs, Lipman also offers custom pack options, allowing for flexibility in packaging solutions tailored to specific requirements.

So, whether a retailer is interested in the existing offerings or has unique product specifications, the company’s customizable packaging ensures an attractive and sustainable presentation.

“Lipman values the OPS because it allows us to forge strategic partnerships with organic growers, retailers, and industry leaders. OPS not only keeps us informed about the latest market trends and consumer preferences, but also provides a platform to showcase Lipman's commitment to sustainable farming practices and innovative organic produce solutions,” Morgan said of the upcoming show. “This event is integral to our mission of delivering high-quality, environmentally responsible products to our customers and reinforcing our leadership in the organic produce sector.”

Sixty-six percent of U.S. consumers—and 80 percent of young U.S. adults (ages 18-34)—are willing to pay more for sustainable products versus less sustainable competitors, according to Sustainable Brands. This, Morgan shares, showcases the growing consumer preference for environmentally responsible choices, which these new packaging solutions support.

“There is significant growth potential in the organic food and beverages market. According to Spherical Insights, the global organic food and beverages market was valued at USD 227.45 billion in 2023. Statista estimates that this market will nearly double by 2026, reaching 437.4 percent. This rapid expansion underscores the increasing consumer demand for organic products and aligns with Lipman's mission to provide high-quality organic produce to retailers, supporting sustainable and healthy food choices for a growing market,” she concludes.

Don’t miss a chance to see how these offerings can adapt to your shelves and displays. Be sure to swing by booth #800 when in Monterey, California, next week.