ATLANTIC COAST - A storm over the Atlantic Ocean will bring heavy rains and gusty winds to part of the eastern coast of the United States this week, and last all the way through the weekend.
The storm will cause problems at the coast and could lead to shipping delays to parts of the Interstate 85 and 95 corridors, AccuWeather is reporting.
Rain is expected to affect areas from Florida to southern Virginia through Friday, where most cities will get rainfall in the amount of 1-3 inches. During Friday into Saturday, the storm will likely expand northward through Virginia and into New Jersey, AccuWeather says.
Even Pope Francis may get rained on come Sunday during a speech in Philadelphia, The Washington Post warns.
According to The Weather Channel, the current rainfall forecast through Sunday is:
- Philadelphia, PE: <1’’
- Washington, DC: <1’’
- Norfolk, VA: <1’’
- Raleigh, NC: 2-3’’
- Charlotte, NC: 1-2’’
- Wilmington, NC: 5-8’’
- Charleston, SC: <1’’
- Savannah, GA: <1’’
For more on how this may affect the industry, stay tuned to AndNowUKnow.
EMERYVILLE, CA - Grocery Outlet has stated that it is on a mission to spread its nearly 70-year-old brand across several western states, as well as Pennsylvania, and in the latest move to do so has launched a new independent owner recruitment website.
Called ownagroceryoutlet.com, this next step is a portal in enlisting independent owners to operate its stores and share in profits, according to a press release.
"We are the largest extreme-value grocery retailer in the nation, with up to 60 percent off conventional, name-brand retail products," MacGregor Read, Co-CEO and grandson of Founder Jim Read, said in the release. "Our buyers travel thousands of miles to find the best bargains from manufacturers and producers. Our independent owner-operators sell products that are outside the retail channel, including packaging changes, product overruns, and surplus inventories. These operators sell, and not buy, our products so that they can focus on retail while we search far and wide for the best deals."
The new website features:
- Q&As with several owner-operators.
- Video interviews with the Grocery Outlet leadership team.
- Startup cost information.
- Details about the industry and what separates the Grocery Outlet store from its competitors.
The company added that candidates often come from other grocery or retail chains, as well as having some management experience, and often make substantially more in income than they would in a store manager position.
Grocery Outlet holds a unique partnership with its owner-operators. Benefits listed for Owner-operators include:
- Not paying for consigned merchandise until products are sold.
- The land is bought and the store constructed by Grocery Outlet.
- Only being responsible for opening costs -- such as hiring and training staff, as well as equipment.
Grocery Outlet acquired Amelia's Grocery Outlet in Pennsylvania, effectively giving the chain a foothold on the East Coast. Now, backed by private equity firm Hellman & Friedman, the chain has more than 210 stores throughout five western states and Pennsylvania combined.
According to the release, Grocery Outlet captured a $1.4 billion share of the $131 billion in annual sales grossed by the independent grocery market, though it competes with larger corporate grocers due to the independent structure of its owner-operators.
For in-depth details about the Grocery Outlet independent ownership opportunity, go to ownagroceryoutlet.com.
PLEASANTON, CA - For all the reasons companies would put off updating the core technology upon which your business runs, such as Enterprise Resource Planning (ERP), there are more reasons not to delay than you might think.
Joan Bell, Director of Program and Product Management for Junction Solutions, took the time to share with me how the company has catered specifically to the technology needs of the produce, food and beverage, and retail industries, delivering Microsoft solutions and industry-specific services for more than ten years.
“ERP, or Enterprise Resource Planning, softwares are the backbone solution sets that run today’s businesses - from field, to manufacturing and pack operations, to distribution channels as well as internal department functions such as finance and HR,” Joan explains. "We see lots of companies running outdated ERP systems that no longer fit their needs, and that in turn can inhibit their growth as a company. They may be hesitant to update that technology because an ERP implementation sounds daunting and risky.”
She explained that Junction looks to take the fear out of ERP implementation with its industry expertise, setting it apart from other solutions available.
“We truly understand what it takes to deliver solutions that optimize processes for the produce industry. We do this in part through what we call ‘Rapid Optimize Implementation’ (ROI).”
Just like it sounds, ROI is an implementation methodology built on Junction Solutions’ knowledge of the produce industry’s specific processes. Using the Microsoft Dynamics AX platform, the methodology and pre-configuration allows Junction Solutions to focus on their customers’ differentiators instead of simple, common software configurations. Because of this, the company is able to add value above and beyond core requirements.
“Each company is unique. We help our customers embrace the differences that set them apart from the competition and contribute significantly to the success of their business.” Joan tells me.
Junction Solutions works exclusively as a Microsoft partner, touting several award recognitions and solutions as flexible and ever-changing as the produce industry itself.
“We are in Microsoft’s top tier for their food and beverage industry partner program,” Joan said. “We have a focus, a specialization and a proven track record of delivering Microsoft Dynamics AX. That makes us a go-to partner for Microsoft when it comes to produce companies looking to update technology.”
While there are several solution options for produce industry-focused software, Joan says that it is the years of experience as a leading Microsoft Partner, deep produce industry experience and expertise, and the capability to structure its solutions around its clients that sets Junction Solutions apart.
As for what it means to be a Microsoft partner, Joan said that this offers a solidarity, consistency, and dependability that you can’t often get with other ERP systems.
“Junction Solutions’ goal is to deliver solutions and services that help companies stay as flexible and connected as possible, so they can continue to innovate and grow,” she said.
And because many companies are already Microsoft-integrated with solutions such as Outlook, Windows, and Office, deploying an ERP solution such as Dynamics AX provides a single, connected enterprise platform for growth.
Junction Solutions services most of the segmentations for the produce industry. Whether it be working with growers, shippers, or produce processors, the company says it can provide solutions that are customizable for each sub-segments, and each business within that segment.
To find out more, go to the company’s website here.
FOWLER, CA - Bee Sweet is making efforts to save precious resources by recycling water amidst one of the strongest droughts to hit California.
“The California drought has significantly impacted the agriculture industry in many ways,” Jim Marderosian, President of Bee Sweet Citrus, said in a press release. “We need to make sure we are doing our part in conserving water and being a leader in California’s water wise movement.”
For landscaping purposes, the company is looking to recycled water via a newly-installed pump designed to collect water in a facility cold storage defroster.
“Water and agriculture go hand-in-hand,” Thomas Marderosian, Bee Sweet Citrus Industrial Technology Manager, stated in the release. “Our new pump will help us conserve water and will help shed light on California’s drought.”
The company’s Industrial Technology team installed the system, which it stated has been fully operational since July, reusing water that was once discarded for landscaping activities.
To keep up on steps the industry is taking for water conservation and other sustainable measures, keep checking in with AndNowUKnow.
UNITED KINGDOM - With only one bidder remaining for its data branch Dunnhumby, Tesco may be scrapping the idea of a sale all together in a matter of days, sources say.
Tesco CEO Dave Lewis is expected to hold talks with colleagues and advisers later this week, Sky News reports, and will discuss the decision to proceed with a sale of Dunnhumby, which utilizes data gathered from the supermarket giant's Clubcard loyalty scheme.
Company insiders told the publication while no decision has yet been made the Dunnhumby's sale, Lewis has expressed he was more than ready to reach an ultimate verdict on the matter so he can refocus on how else to transform the company.
Price expectations for Dunnhumby have dropped from $3 billion to $1 billion since the sale was announced, and the number of potential bidders has dropped by a substantial number. Currently, the Financial Times names the one remaining bidder as British advertising and PR firm WPP, but it doesn't seem like Tesco execs are yet sold on forking over the business.
Sky News reports that it may be possible that WPP would opt for a partnership agreement with Tesco rather than a complete acquisition.
Earlier this month, Tesco announced the sale of Homeplus, its business in South Korea, for over $6 billion to MBK Partners-led consortium, with the retailer netting over $5 billion after taxes and transaction costs.
Currently, Tesco’s debt has reached over $33 billion, according to The Wall Street Journal, but this latest deal, as well as a potential deal for Dunnhumby could be vital for Tesco’s revitalization plans.
Stay tuned as AndNowUKnow continues to update you on this developing story.
PHILADELPHIA, PA - Procacci Brothers is continuing to enhance its sales team with the promotion of Carlos Rodriguez.
Rodriguez will now be taking up the mantle as Procacci’s new Director of Sales in its tropical produce department. Prior to this latest role, he was employed as a manager at Procacci Brothers’ store in the Philadelphia Wholesale Market (PWPM), where he had the opportunity to strengthen his skills in sales, customer service, procurement, receiving, and transportation, according to a press release.
Mike Maxwell, President, said he was thrilled to bring Carlos on board as a member of the sales team.
“It’s going to be very exciting to watch him flourish in this new role,” said Maxwell. “Our customers will soon come to know that they can trust and depend on Carlos. He’s a very sharp guy with a great work ethic.”
Rodriguez first joined Procacci in 2012 as a cooperative education student through Saint Joseph’s University’s Food Marketing program. Receiving much praise from George Binck, Executive Vice President at Procacci, he was later hired full-time in September 2014. It was during this time Rodriguez worked under the guidance of Mike Barber, Procacci’s Director of Banana Sales, to oversee quality control and inventory management for bananas and yellow plantains.
Having already displayed exemplary performance in various production, customer service, sales, and management roles, Procacci is confident that Rodriguez will be able to prove his worth as Director of Sales.
CEDARBURG, WI - A new record has been made for the produce books that would humble James and his giant peach, just in time for the Halloween season.
Illinois grower and factory worker Gene McMullen brought a gourd weighing over a ton to the Cedarburg Wine & Harvest Festival in Wisconsin, where officials clocked it at 2,145.5 pounds, according to Fox News.
With the previous U.S. record standing at 2,058 pounds, McMullen now holds the title for largest pumpkin in the U.S., having just fallen short of the world record by 177.5 pounds.
This still marks a huge win for the factory worker, who told the Associated Press, "I don't do anything different than any other growers do."
It is evident, however, that a lot of passion went into “not doing anything different” when viewing the reaction of the final count in the below video from weather.com.
McMullen was a return competitor, his last year’s entry weighed in at 1,600 pounds.
And while this victor may not hold the world title (yet), the post on Facebook above shows that second place is still a victory.
Congratulations, Gene, both on this sizeable achievement, and the amount of pumpkin seeds and pie you’re sure to be enjoying until Halloween does come!
U.S. & MEXICO - The organic category has seen immense growth in recent years, which has had a direct impact on growing practices and exports for our neighbors in the south. Erica Renaud, Regional Business Manager, North America for Vitalis Organic Seeds, the organic division of Enza Zaden, took the time to share with us some of the strides the country has made in this rapidly expanding category.
“The Mexican government has made two major regulatory changes in direct response to the growth of the organic sector,” Erica tells me. “After a decade long process, Mexico (SENASICA) has launched a domestic organic standard for organic production and processing, while almost simultaneously, SAGARPA has modified its mandatory chemical seed treatment requirement for imported seed.”
Recognizing the growth in the organic market and the potential for Mexican growers, organic growers needed easier access to organic and conventionally untreated seed in order to comply to organic standards. Through the modification of the seed importation requirement, organic growers now have legal access to a broader assortment of high quality organic seeds.”
Previously, Mexico’s import regulations prevented many organic growers from obtaining the seed necessary to meet the organic standards for the U.S., Canada, and the EU (which all require organic growers to use organic seed when commercially available). Chemical seed treatments, such as Thiram, are not permissible under global organic standards. Now, Erica tells me, that door is slowly being pushed open by the evident growth seen in the category.
“One of the major points Mexican growers need to consider is that, while organics is a burgeoning market, transitioning from conventional to organic production needs to be done slowly. There are many challenges in an organic production system that differ substantially from a conventional system, namely biological soil fertility management and non-chemical management of diseases and insects. If one does not develop their organic production area slowly, they risk failure and non-compliance to organic certification requirements, which could jeopardize the integrity of Mexican organic production for all growers,” Erica said.
Developing a longer term organic management plan supports the market demand that organic growers can supply retailers with a year-round production in consistent supply and quality.
Right now, organic is an industry grossing more than $60 billion per year on a global scale. Approximately $32 billion of that gross is within the U.S. As we previously reported, this is an 11 percent increase over the 2014 organic category as a whole, and fruits and vegetables make up the majority of sales by a wide margin at 36 percent.
Considering over 90 percent of Mexico’s organic produce is exported to the U.S., the interconnectedness of the markets is fundamental, Erica says.
Currently the country is reporting over 600,000 hectares in organic vegetable alone, and with the government acknowledging the category's growth with enhanced organic agriculture policies and the removal of trade barriers, that number will only continue to grow.
Top Seal packaging, one of the latest trends to hit the produce industry, is innovating the way companies are preserving the freshness of a variety of categories. Not too long ago, however, this was an idea that was an out-of-the-box concept that many considered, well, crazy. In AndNowUKnow’s sister publication The Snack Magazine, we sat down with Costco Wholesale's General Merchandising Manager, Oleen Smethurst, one of the champions for Top Seal technology's implementation in the produce industry.
Check out the full article in The Snack magazine by clicking here, or continue reading the full piece below.
To request a copy of The Snack magazine, click the green button below.
Top of Her Game
“Are you crazy?”
When Oleen Smethurst first began her push of the Top Seal packaging program, a few of her initial suppliers had this response.
“Those first critiques were that this innovation would not work. Years ago, peelable and peel-reseal technology was not achieving the same goals we are striving for today,” Oleen, GMM Produce, Costco Wholesale Canada, tells me. It’s been leaps and bounds since then, as Costco’s produce packaging has evolved across the board.
Oleen is one of the chief advocates of Top Seal technology and a driving force in its implementation across the produce industry. Technology has vastly evolved and as Oleen tells me, the packaging that people may be using as a reference from years ago, is not the packaging of today.
“When you replace clamshell lids with Top Seal you also reduce the plastic use by up to 25 percent."
Top Seal brings a host of advantages to produce, from creating higher product visibility to supporting the quality and freshness of the item. In addition, Top Seal promotes a longer shelf life by controlling the respiration rates with micro and macro-perforated film. Top Seal’s technology, also referred to as Heat Seal technology, can be utilized through a simple peelable format or peel and reseal, depending on the demands and uses of the product.
“When you replace clamshell lids with Top Seal you also reduce the plastic use by up to 25 percent, creating more sustainable packaging - a big talking point with members,” Oleen notes.
Top Seal aligns with North America’s drive toward sustainability across all industries by using more and more of the continent’s recyclable plastic bottles to lessen Top Seal’s environmental impact. For some suppliers, there is also the opportunity to transport more produce with Top Seal and its more efficient stackability component. The strength of the packaging allows more rows to be utilized and can travel well over longer distances. In addition, stackability provides a more effective use of retail shelf space. While the easy-to-open container provides quick access to produce, the flexible closure comes with the unique ability to reseal multiple times without losing functionality.
"I feel it is the right thing to do for the environment, our industry, and members alike."
One concern with similar resealable technology has been possible tampering during its journey through the supply chain. Peel and reseal features a tamper evident seal to lift member confidence in the integrity of the packaging.
“At Costco Wholesale Canada, we are hoping to transition as many commodities and vendors to Top Seal as possible. I feel it is the right thing to do for the environment, our industry, and members alike," Oleen continues.
When I ask Oleen how she discovered the innovation, she tells me that her journey began in the United Kingdom. A couple years ago, after wrapping up a Fruit Logistica event, Oleen went with one of Costco’s packaging specialists, Jason Shuttleworth, to check out packaging advances that were being utilized by U.K. retailers. Chains like Tesco and Marks and Spencer were using Top Seal on almost all of their produce items. Pair the clean presentation with its quality and visibility factors, and it just seemed like a perfect fit.
As Oleen began to build on her knowledge of Top Seal, Costco looked for suppliers who would be willing to partner and commit to transitioning their categories to the new packaging. Mastronardi/SUNSET® had already been in the advanced stages of working with Top Seal on new peelable packaging.
“Mastronardi was the first company to partner with us on the Top Seal conversion,” Oleen tells me. “They had been working with Top Seal before I came to them and had initiated the peelable packaging with grape tomatoes. This conversion alone saved 36,000 lbs. of plastic a year just on grape tomatoes on the East Coast,” Oleen says. Mastronardi also found out that they could save on cases – instead of stacking the product just one layer high, they could stack two layers of product since the packaging is much sturdier and durable than most people think.
Paul Mastronardi, CEO of Mastronardi Produce/SUNSET®, tells me, “Top Seal packaging has many advantages for both the member and retailer. The design allows for opportunity snacking, which means members are more likely to eat tomatoes throughout the day. Simply peel the film, rinse in the bowl, and set it out on the counter.”
Since snacking tomatoes are typically consumed quickly, relative to shelf life, SUNSET® had gone with the peelable, as opposed to resealable, option to promote the snacking component throughout the day.
“The package has a sleek look with a preprinted, high graphic film and of course, less material than a traditional clamshell, meaning less waste. Not to mention the entire package is 100 percent recyclable. We’re proud to share our Top Seal vision with Costco and work together with key suppliers to increase sales,” Paul adds.
Costco Canada has also been working with vendors in its blueberry category that have already transitioned, as well as vendors that are transitioning for summer programs. Take Naturipe for example, who has already adopted the Top Seal program. The company is using Top Seal/Heat Seal’s peel-reseal technology, to enhance its product prowess.
“Typically, members will not eat 2 lbs. of blueberries in one sitting and so the resealable packaging makes more sense,” Oleen says.
As Naturipe continues to reinvent its product line, Robert Verloop, Executive VP of Marketing for Naturipe Farms, tells me, “Innovations in packaging are part of our DNA at Naturipe. Several years ago we used heat seal technologies to enable the development of our Ready-to-Eat blueberry snack products. We saw the opportunity to expand to our large packs, and have worked closely with a range of packaging experts/suppliers and our customers to bring the current version to the marketplace. Our heat seal film, with a peel and reseal top, is another step forward in implementing sustainable technologies that make healthy great tasting fresh blueberries more convenient for members, enhance merchandising of the berries on retail displays, and give chefs more flexibility for their restaurant operations.”
Naturipe offers heat sealed blueberries in the 18 oz. and 2 lb. trays and are available from operations in GA, CA, NJ, MI, OR, and BC. In the coming year, Costco has a goal of moving all produce categories to Top Seal, based on their adaptability to the program.
Highline Mushrooms is currently in the works and is slated to make its debut this year. Costco also has a smaller TOV in the East, which they are working to transition to Top Seal. In addition, packaged salads are also making their way to the Top Seal program with items like Misionero’s Garden Life Washed and Trimmed Lettuce and Misionero Earth Greens Organic Salads.
Dan Canales, Vice President of Sales and Marketing at Misionero Vegetables, tells me, "Oleen has a great sense and knowledge of new and emerging packaging and products. She is willing to be a leader in order to continue bringing value and uniqueness to Costco's members. The ‘peel and reseal’ technology is a prime example of that.”
“There were challenges to transitioning to the Top Seal program in the early stages. But the ROI proves that this program is worth every penny. There is quite a bit of initial investment right from the start."
Costco Canada is also testing Coronation grapes, nectarines, and kiwi fruit. As with implementing any new program or business model, there are always the hurdles and the concerns.
“There were challenges to transitioning to the Top Seal program in the early stages. But the ROI proves that this program is worth every penny. There is quite a bit of initial investment right from the start," Oleen says. "But those that have partnered with us have our commitment to them, and we have theirs in return.”
In some cases, Costco Canada even partners with its vendors all the way to the seed, traveling with suppliers to Holland for hot house seed tours. As everything is transitioning back towards quality and flavor, Oleen likes to be involved right from the beginning to observe the development of varieties, each step of the way. Top Seal machinery can handle heavier volumes at a quick pace as well, and depending on the facility it may be even more efficient for packer and shippers.
“From a packing standpoint, Top Seal’s efficiencies become one of those elements that affect a higher ROI,” she notes.
"The growers have been my teachers."
The Top Seal program is gaining ground, as macro and micro-perforated film is now produced by multiple suppliers from Italy to the U.S. In Canada, Costco is not repacking product, which is a concern that suppliers might have had with similar peel-reseal technology.
“It comes down to providing better quality for the member. Everything about the end product is beneficial, and it is selling well,” Oleen says. “Members can be a little bit hesitant when it comes to packaging changes and understanding the dynamic, but with Top Seal they are loving it.”
While Oleen remains at the forefront of packaging trends, she reminds me that she did not initially begin in produce with Costco, but was promoted into the role 10 years ago. Previously, she worked throughout just about every other food category during her time in Food and Sundries.
“I had very little hands-on, produce-focused experience when I first put my toe in the water. The suppliers were a huge part of the learning process. They put up with all my questions - the growers have been my teachers," she says.
Perhaps taking a cue from suppliers that she's come to know and respect, Oleen tells me that produce is ever-changing. "In a word, produce is dynamic,” she notes.
Top Seal is proving to be a win-win for both Costco and its vendor partners, providing the quality, visibility and freshness members have come to depend on, while aligning with the industry’s sustainability initiatives.
Crazy? More like inspired.
BANCROFT, WI - Among the busy atmosphere of the PMA Foodservice Expo, RPE’s Account Manager Mike Shamberg took the time to show off the company’s Tasteful Selection’s line of baby potatoes.
So why are these particular spuds so unique?
“Every potato in each box is no more than four, five, six millimeters in difference in size,” Mike tells us, explaining that it’s the size profiles that sets this product apart.
The full line of potatoes come in “one bite,” “two bite,” and “three bite,” sizes, are pre-washed, and ready to go.
Available in medleys and three various colors, the similarity in sizes means the same prep and cook times, which Mike explains makes them a chef favorite.
Watch the brief video above to see our full interview with Mike, and keep checking in with AndNowUKnow to continue to get up close and personal with the industry’s latest products.