NEW YORK - Nearly a month after the appointment of Nelson Peltz to Sysco’s Board of Directors, the company has presented a three-year plan that aims to improve its annual operating income by $400 million.
Sysco presented the plan during its 2015 Investor Day on Tuesday, in which the company also announced that it is targeting a 15 percent return on invested capital by fiscal 2018.
The foodservice giant proclaimed that it would achieve these goals by accelerating local case growth, improving gross margins, leveraging its end-to-end supply chain, reducing administrative costs, and generating more than $1 billion in free cash flow per year, according to a press release. Reuters reports that an estimated 15 to 20 percent of the operating income growth is expected to come from reducing administrative costs.
“This plan leverages a variety of new capabilities and initiatives developed over the past several years that together provide a strong foundation for ongoing value creation,” Bill DeLaney, Sysco’s Chief Executive, said in a press release. “We are confident that this plan is the right one for Sysco shareholders, customers, and associates, and we look forward to delivering on these commitments.
As of September 16 at 1:21 PM EDT, Sysco’s stock is up 0.03% to $39.47.
In an interview with Reuters, DeLaney also added that the company is looking to grow its cases and accelerate its case growth with the locally managed customers it has.
Just one week after Trian Partners became the largest individual shareholder in Sysco, the firm’s Nelson Peltz and Josh Frank joined Sysco’s Board of Directors in an attempt to enhance the company’s performance after its failed merger with US Foods.
“Obviously, they're a big shareholder, and they’re on our board, so we’re certainly going to listen to all of that,” DeLaney told Reuters. “We need to take costs out, but one of the things we’ve learned over the years is if you do it the wrong way or if you do it before you’re really ready to execute it well, there can be ramifications on the customer side, which you don’t want to have. It just needs to be executed well.”
Reuters also reports that Sysco has already cut approximately $700 million in annual costs over the past three years.
How will Nelson Peltz’s addition continue to shake things up at Sysco? Stay tuned to AndNowUKnow to find out.
BOISE, ID - It looks like legal woes won’t be getting in the way of Albertsons' planned $24 billion IPO, sources are reporting.
According to Reuters, sources have confirmed that Albertsons' majority owner, Cerberus Capital Management, will continue its plans to carry out the IPO despite the recent $1 billion lawsuit from Haggen and increasing volatility in the stock markets. Confidence remains high that the firm will be able to retain Albertsons’ high valuation.
As we’ve previously reported, Haggen accused Albertsons of misrepresenting the financial health of stores that Albertsons sold to the retailer. Albertsons sold the stores as part of an effort to win approval for a $9.2 billion merger with Safeway. As part of the merger, Albertsons divested 168 stores, 146 of which were to Haggen.
Despite these allegations, which Albertsons vehemently denies, Cerberus sees an IPO as a way to capitalize on the strong performance of rivals like Kroger, the sources told Reuters. Kroger's most recent financial report, announced last week, beat analysts' expectations in both profit and same-store sales and has been trading at approximately 8.23 times its projected 12-month EBITA, according to Thomson Reuters data.
Albertsons will use its “still unrealized synergies” from the Safeway merger and potential acquisition opportunities to gain investors attention, the sources said, while also confirming that the listing date could change based on market conditions.
FRIESLAND, WI - Alsum Farms & Produce Inc. has a new item in store for those attending Southeast Produce Council's (SEPC) Southern Innovations Symposium Bright Ideas Platform September 17-19, 2015. The company has announced it will introduce new Fast & Fresh! potatoes, a 12 oz package of microwave-ready russet potatoes, for the Bright Ideas Platform showcase for the best innovative ideas in produce.
“The Microwave-Ready Russet Potatoes bring fresh, convenient potato solutions to the time-starved consumer,” says Heidi Alsum-Randall, National Sales and Marketing Manager of Alsum Farms & Produce. “Demanding lifestyles coupled with the desire for healthier meals make the Alsum 12 oz Microwave-Ready Russet Potatoes a convenient side dish for today’s busy consumers and millennial shoppers.”
Now available year-round, Alsum Farms & Produce’s Fast & Fresh! Potatoes are a 12 oz package of fresh baby russet potatoes that are triple-washed and ready to cook. The company says that these potatoes allow for today’s busy consumers to go from the microwave to their plate in 5 minutes or less. According to a press release, Fast & Fresh! potatoes are the perfect side dish that’s delicious, good-for-you and easy to serve with any meal.
These convenience packed potatoes are now available at select retail grocers alongside Alsum Farms & Produce full-line of conventional, organic and specialty potato offerings. Showcased in am eye-catching steamer package, the company says its new product capitalizes on the trust and expertise of the farmer, Larry Alsum, as well as protects the potatoes from light to prevent greening when on the store shelf or in the home cooks pantry.
PHOENIX, AZ - VPC Freight Solutions has announced that its truck fleet is now equipped with Electronic Logging Devices (ELDs). This comes ahead of the time when these devices will be required for all trucks by the US Department of Transportation in the second half of 2016.
“E-logs are now an essential piece of technology that will be mandated to be in all commercial trucks in the near future,” says Steve Day, Sales Manager for VPC Freight Solutions. “With the integration of E-logs to our fleet, we will chauffeur in a new era of safety and it will assist in driver and company accountability. Think of E-logs not just as electronic log books, but also they function as a GPS, navigation, and email. Essentially a small office located inside the cab of a truck, ready to transmit pertinent information.”
According to a press release, ELDs installed in interstate commercial trucks will help ensure compliance with safety rules that govern the number of hours a driver can work. The early transition to E-logs will also allow VPC Freight Solutions to remain competitive and maintain its premium customer service.
The USDOT law has four basic parts, VPC Freight Solutions reports:
- The requirement to use ELDs
- Protections against driver harassment
- Hardware specifications for the devices
- Hours-of-service related supporting documents drivers must continue to carry after the mandate
“It was a priority to get these systems in our trucks and have our drivers fully trained prior to the law going into effect,” said Daniel Holmes, General Manager for VPC Freight Solutions.
Holmes also sees improved productivity as an advantage of these new systems, he says, as well as helping the company to manage its business costs.
LOS ANGELES, CA - Watch out LA, there’s about to be a new contender in your city’s grocery wars.
Grocery Outlet Bargain Market has announced the addition of 14 new stores throughout the Los Angeles area beginning this December, and continuing at a rapid pace throughout 2016. All this less than one week after Haggen announcing it has failed to make a significant impact in the Southern California market.
Grocery Outlet says the company sets itself apart from other discount retailers by offering name brands at prices up to 60 percent off traditional supermarkets. This year alone, the chain claims that shoppers have saved more than $1 billion on products purchased at Grocery Outlet as compared to traditional grocery stores.
"It's fun to watch eyes pop and jaws drop when people come to our stores the first time and see such extreme bargains on the brands they love," said Eric Lindberg, Co-CEO of Grocery Outlet. "There is a reason we label products with discounts over 50 percent as 'WOW' deals. It's often the first thing shoppers say when they realize how much money they'll save.”
The first stores are scheduled to open in Costa Mesa on December 3 and Westminster on December 10, marking a comeback for the 227-unit chain in the area. Grocery Outlet previously operated outlets in Buena Park and Fountain Valley, but closed those stores a few years ago when the leases expired, saying the company wished to regroup at the time, according to the OC Register. Now, it appears the retailer is ready for its next moves, with a total of 35 stores planned over the next two years in the Los Angeles area.
Grocery Outlet Bargain Market uses a unique buying model to achieve its low prices. According to a press release, Grocery Outlet buyers negotiate directly with manufacturers to buy overstock and surplus products at deep discounts and pass those savings directly on to customers.
In addition to bringing affordable, healthy options to the Los Angeles area, Grocery Outlet will be attempting to make an impact in the local communities as well. All of the company’s stores are independently owned and operated by residents in or near the communities they serve.
"Giving back to the Los Angeles community is a big priority," said MacGregor Read, Co-CEO of Grocery Outlet. "My grandfather started this business nearly 70 years ago. As a family-run business, we're proud to say our values are reflected in each of our stores. From supporting little league teams to donating food to those in need, our local owners share our commitment to making a lasting impact."
With the opening of the first 14 stores alone, the independent Grocery Outlet operators will create jobs for approximately 500 people.
FRESNO, CA – Culinary Competitions International (CCI) is paving its way into China with the opening of four new offices.
With new locations in Shanghai, Beijing, Guangzhou, and Hong Kong, this agricultural marketing company is confident it can continue meeting the export or import demands of its client-base.
Peter DeYoung, CEO of CCI, said he was very excited about this international expansion, noting that having offices in these specific regions can act as a “home base” for the company’s clients in their main target markets.
“We now have a greater presence in these target export markets, which opens doors often closed to U.S. exporters,” said DeYoung. “Our team in China is comprised of agriculture marketing experts and highly trained PR specialists.”
CCI’s target focus is helping its clients increasing overall exports and delivering key messages in-market with international marketing promotions. While culinary competitions comprise only one area of specialty, marketing strategies include but are not limited to foodservice promotions, coordinating trade relations, recipe contests, culinary and baking competitions, and the planning and execution of high profile marketing and PR events, according to a press release.
“Expanding internationally has made a big difference in helping us grow with our clients,” said Marilyn Cowley, Vice President of Marketing. “We are very excited for the future. We plan on opening more offices around the world to meet similar client needs.”
CCI is confident that with China being one of the lead export markets for U.S. agriculture, this expansion will serve as a huge benefit to its clients.
YUMA, AZ - Google Maps has made life a lot easier for everything from travel plans to dining choices, but for selecting planting grounds?
That is what seed producers in Yuma, Arizona, are saying, according to a KJZZ report.
“We were spending a lot of time just going back and forth trying to pin isolations on [a] board,” Jose Solorzano, Research Manager for vegetable and flower seed company Takii, told KJZZ.
Isolation is key for this aspect of the industry in order to maintain the purity of the seeds, Yuma County Extension Director Dr. Kurt Nolte explained.
“Cross pollination is vital within a field, but purity of the seed is at risk when bees move pollen to other fields," Dr. Nolte said, according to the report. "So if we have a white onion field right next to a red onion field, the possibility of getting a pink onion is very high.”
And of course, he added, nobody wants a pink onion.
Now these growers have “plugged in” so-to-speak, having a shared Google map that has moved the pins of isolated areas from a board in Yuma’s extension office, where everyone had to meet annually to sort out crops and areas, to one easily accessible forum online.
“As long as we have an Internet connection, we can do it anywhere in the world,” Solorzano told KJZZ.
While the workers of this aspect of the Arizona produce industry, which the USDA reports brings in more than $4.5 million, can’t control the bees, they now have a bit more control over how they compensate for them.
Though Google Maps does have many options for different mapping needs, including satellite, topography, transit and the like, it does not yet have a mapping option specifically geared toward agriculture. Perhaps with a few more stories like the seed producers of Yuma, Arizona, Google will provide the industry with one.
LAS VEGAS, NV - Two firsts were set last night when American Ninja Warrior, the NBC hit show, crowned a victor for the first time in its seven seasons.
Dahlia Reinkopf, POM Wonderful® Senior Director of Marketing, shook the hand of champion Isaac Caldiero, winner of a million dollars and the American Ninja Warrior title, celebrating a season-long partnership between the program and POM Wonderful® 100% Pomegranate Juice that ended in victory.
“Isaac’s spectacular performance throughout the competition and in conquering Mt. Midoriyama brought to life what it means to be ‘crazy healthy,’” Reinkopf said, according to a press release. “We are thrilled that we were a part of this historic season of American Ninja Warrior. It was an exceptional fit for POM 100% Pomegranate Juice.”
For those who have not seen the show, Caldiero conquered a four-stage, grueling and challenging obstacle course in Las Vegas before hitting the final buzzer that meant he had done what no one has yet to do.
POM Wonderful sponsored this seventh season of the popular show as an extension of its “Crazy Healthy” campaign, according to the company, integrated into each episode with spots such as the “POM Crazy Healthy Run of the Night” and the exclusive “POM Warm Up Zone” that held weekly interviews.
POM Wonderful’s sponsorship also included:
- Digital exclusives
- A consumer-focused digital sweepstakes
- An in-store partnership promotion
The historic season finale aired on NBC on Monday night, Sept. 14th.
WASHINGTON, D.C. - Immigration reform is still one of the industry’s biggest issues as we head into the 2016 presidential elections.
Yet, as the debates rage on and the speeches mount, growers are still struggling as they wait for skilled labor to harvest crops.
Last November, President Obama unveiled his immigration reform plans to the country, modifying detention and deportation procedures for illegal immigrants. Though his intentions provide minimal relief for agriculture, meaningful change can only come through congressional action.
At this year’s upcoming United Fresh 2015 Washington Conference, more than 500 produce industry executives will band together to advocate for immigration policies that support an adjustment of status for experienced, but authorized, agricultural workers who reside in the U.S.; call for the reform and replacement of the current agricultural worker program with a new agricultural worker visa program; and ensure that ongoing and future efforts for border security and enforcement continue as long as they are coupled with a solution to provide agriculture with a legal and stable workforce.
United Fresh is asking industry members to join together to shape a better future for the industry this September 28 – 30, 2015 in Washington, D.C.
Registration to attend the Conference is still available. You can sign up by clicking the link below.
Attend the United Fresh 2015 Washington Conference
To hear more about what to expect from this year’s Washington Conference, listen to my interview with Tom Stenzel, President and CEO of United Fresh.
This is your opportunity to meet with Congress members and industry leaders from growers to wholesalers to retailers and foodservice companies and make your voice heard.
Stay tuned to AndNowUKnow for more on the Washington Conference.
ALEXANDRIA, VA - Cabbage butts, chard stems, bread crusts… These are all items you’ll find on the menu at Virginia “food waste restaurant,” Teaism.
Conceived by Chef Alison Swope, Teaism offers a unique “trash or treasure” menu list, using food that might otherwise end up in the garbage to make healthy, flavorful dishes.
Following the recent trend of “ugly produce” and capitalizing on how it can help a company’s bottom line, the new menu items came as part of Teaism's menu reboot earlier this year, Co-Owner Michelle Brown told the Washington Post.
"We had to kind of clean up 20 years of cut and paste and get a little more serious about cross utilization of products," Brown said. The $5 "trash or treasure" items are intended in part to appeal to budget diners, and as soon as diners realize how filling these dishes can be, they’ll really start catching on, she says.
One dish, made primarily out of the tough and particularly non-leafy cabbage butts that chefs normally toss out, has been getting attention from guests since its inception. The tender leaves are just fine raw, but the cabbage butt—the end and first bit of leaves—would be too tough to use in the salad, Brown said. But Swope, being her resourceful self, decided she'd stir-fry them with a house-made gochujang sauce instead of giving up on the leftovers.
Another of Swope’s dishes uses discarded chard stems separated from their leaves. Swope dips them in coconut milk, coats them in panko crumbs, and fries them to give them new life as a tasty side. Swope even gives cut-off bread crusts a new home in her "trash or treasure" dishes. Like a panzanella salad, she mixes tomatoes, cucumbers, herbs, vinaigrette, and bread crusts from the focaccia that Teaism bakes for its burgers.
Will revamping wasted produce be the next big trend for top restaurants? Stay tuned to AndNowUKnow for more.