NORTH AMERICA - Yes, there is still a debate over El Niño, but the gap is continuing to close.
The National Weather Service Climate Prediction Center has reported that it is now 95 percent likely that El Niño will last through the Northern Hemisphere's coming winter, weakening as it progresses through Spring 2016. This is up five percent from the center’s positivity last month, when it said the chances were 90 percent.
As for the weather pattern itself, climatologists say that it is already here and is the strongest ever seen.
"The atmospheric response to the equatorial sea-surface temperature anomalies, measured by their atmospheric ENSO index (AEI), is the strongest event since at least 1948," Dr. Todd Crawford, Chief Meteorologist at the professional division of The Weather Company, said in a Sept-Nov seasonal outlook, according to the Weather Channel.
But while weather experts’ confidence in regards to El Niño builds, the amount of help it will bring during an equally record-setting drought along the West Coast continues to remain up in the air.
“Current El Niño conditions cannot tell us how many storms may cross California this coming winter or how much rain and snow will fall in our state,” State Climatologist Michael Anderson said in a prepared statement, according to the Sacramento Bee. “Strong El Niño events in the past have led to wetter-than-average conditions in the southern part of the state but offered mixed results for California’s main water supply regions in the north. This uncertainty means that Californians should continue to use water carefully and sparingly in the face of the ongoing extreme drought.”
As we previously reported, El Niño is a warming of a certain patch of the central Pacific that changes weather patterns worldwide, associated with flooding in some areas and droughts in others. This is the first since 2010, and has been progressively building.
AndNowUKnow will continue to keep you up to date on all weather events affecting the produce industry.
CINCINNATI, OH - Kroger has released its Q2 2015 financial report, and after earnings rose well above Wall Street’s expectations for the company, shares jumped up nearly 7%.
"We are pleased with our second quarter performance,” commented Kroger’s Chairman and CEO Rodney McMullen. “Our core food business continued its strong performance and we benefitted from fuel margins that expanded throughout the quarter. We continue to earn customer loyalty and gain market share.”
Second-quarter earnings reached up to 44 cents a share while analysts had only projected 40 cents on average, according to data compiled by Bloomberg. The company also adjusted its expected fiscal year earnings to as much as $1.98 a share, up from the previous forecast of $1.95. Total sales, excluding fuel, increased an impressive 5.7% over the same period last year.
McMullen also commented on the recent decision to expand its business by hiring 20,000 new employees. "We are investing to grow our business for the future while delivering on our promises today,” he said. “For example, our stores are hiring to fill 20,000 new, permanent jobs and we are expanding our digital and e-commerce offerings. Our confidence in Kroger has never been stronger.”
Other highlights from Kroger’s Q2 2015 financial report include:
- Achieved 47th consecutive quarter of positive identical supermarket sales growth, excluding fuel
- Total sales increased 0.9% to $25.5 billion in the second quarter
- Reporting a $21 million LIFO charge during Q2 2015 compared to a $26 million Q2 2014
- Total operating expenses excluding fuel decreased 35 basis points as a percent of sales
- Return on invested capital on a rolling four quarters basis was 14.24%.
As of 1:15 PM EDT, Kroger’s shares were up 4.72% to $37.07.
Stay tuned to AndNowUKnow as we continue to follow Kroger’s financial performance in Q3 2015 and beyond.
SANTA PAULA, CA - Limoneira, in a partnership with Produce Alliance, is sponsoring the PA Puckerface Challenge, a new social media campaign to raise funds for, and to promote awareness of, childhood hunger in America.
Kicking off on September 18 in a campaign similar to the popular ice bucket challenge, both adults and children are encouraged to participate. In the PA Puckerface Challenge, participants start by biting into a lemon to show their best “puckerface.” PA Puckerface Challenge champions then post the videos or photos onto social media with the hashtag #PApuckerface and a short caption about childhood hunger while nominating three friends and family members to also complete the challenge and to donate.
A sample caption for users’ posts could be: “Over 20% of children in America live in food insecure households. I’m showing my puckerface to raise awareness for childhood hunger across America. I nominate (@friend) (@friend) (@friend) to show their #PAPuckerface for #KidHungerAwareness.”
Watch one family's video below:
According to a press release, both Limoneira and Produce Alliance will combine their network of over 20,000 food industry partners to engage in the PA Puckerface Challenge. In addition, they will collect donations through the Produce Alliance Foundation to donate to various local and national organizations dedicated to fighting childhood hunger.
Over 20 percent of children in America equaling over 16.2 million, live in food insecure households and struggle with hunger, the USDA reports. To join the fight against childhood hunger, make a donation through the Produce Alliance Foundation. For more information about the PA Puckerface Challenge, please visit www.showmeyourpuckerface.com.
With roots 125 years deep into U.S. soil and an outlook as fresh as the industry itself, AndNowUKnow’s sister publication The Snack Magazine asked Domex Superfresh Growers President Robert Kershaw about the culture behind the company and how it stands apart from the rest.
Check out the full article in The Snack magazine by clicking here, or continue reading the full piece below.
Fresh to the Core
Young, engaged, and positioned for continued growth. That’s what comes to mind while I sit with Robert Kershaw at Domex Superfresh Growers’ newly expanded Yakima office to talk about what exactly makes the company tick. While the current President and fifth generation grower may typically shy away from the limelight, today he is sharing one of his biggest passions with me - the people.
“We like to break the watch apart every single day and find a better way of putting it back together, with an emphasis on we,” Robert tells me. “That’s our culture. It’s about striving to be the best and never sitting still, and that starts with those people who make our program possible.”
Superfresh Growers isn’t just one of Washington’s largest apple growers, it is also home to one of the most progressive and unique work cultures in our industry. Domex prides itself on being true to the soul of the company, which communicates an immeasurable source of passion for the community and for the well-being of each employee.
“I don’t want to look back when I am at the end of my career and say I didn’t help improve the lives of the people around me."
"Our teammates can spend up to 12 or even 14 hours a day here in the office, and I try and make the environment one where we can work hard, thrive, and have fun and stretch our legs when we want to,” Robert smiles.
The Domex team is an eclectic mix of personalities, ages, and demographics, which keeps the atmosphere dynamic and ever-focusing on the road ahead.
“It isn’t about titles here. We welcome the younger team members’ input as much as the older generation, something we like to call building a demographic curve,” Howard Nager, Vice President of Marketing, tells me. “It is about developing talent and retaining it. Having a range of voices allows a unique dialogue between different generations to share varying levels of expertise in technology, growing practices, marketing concepts, and business models.”
Within that all-inclusive mentality, there is also a delicate balance to maintain. When working in this extremely competitive industry, recognizing the importance of the ‘team’ is essential to the culture at Domex.
“We look for very competitive people who can appreciate the team over the individual. That is a very big part of our selection process. Take basketball for example. The point guard doesn’t score a lot of points, but the team can’t win without them,” Robert tells me as he walks me through some of his most-frequented sports analogies.
“If you don’t have a good team member, it affects the health of the whole and can bring down an entire organization."
“One of my favorites is the locker room analogy," Robert tells me. "It’s close quarters in here, and you have to enjoy being in a place where you spend more than half of your waking hours. It’s where you have the possibilities to earn or lose trust, build on your strengths, or succumb to your weaknesses.”
“We are a family and a community with a sense of responsibility,” Loren Queen, Marketing & Communications Manager, tells me. “Whether it is the company’s latest project in social and corporate responsibility, or nurturing the next generation of great leaders in Washington State, the focus for Domex Superfresh Growers has always been the health of the team, to ensure the health of the company.”
While the efforts to support the growing Yakima community are currently at their peak, this family mentality began long before Robert took the reins, and speaks to five generations of Kershaw growers.
The history of the Kershaw Companies in the Yakima Valley begins with family...
A vein that runs deep throughout the company’s business model. The roots of Domex actually took hold in different form more than 125 years ago when the Kershaw pioneers headed west to ultimately settle in the Naches Valley. Originally, one of those pioneers, Robert Kershaw, focused on raising cattle, but the expanded availability of irrigation water following the passage of the Reclamation Act of 1902 encouraged him to move into fruit ranching, starting with pear orchards and then adding apples to the portfolio as the company looked to differentiate.
What began as the Kershaw Companies quickly evolved into a vertically integrated organization to include farming, warehousing, sales, marketing, and logistic services. In 1981, fourth generation Ed Kershaw and his brother, Bob, launched Domex Superfresh Growers to help bring the company’s fruit and other grower partners’ fruit to market. The company is now led by President Robert Kershaw.
In 2009, as growth continued and the need to work even more closely with customers continued to escalate, Kevin Kershaw, also a fifth generation family member, created a transportation division called DSG Logistics. As the Director of Transportation, Kevin and his team work closely with not only Domex customers, but many additional grower/shippers that may need transportation and logistics assistance.
So, how does this family-run group of entrepreneurs ensure that they remain competitive in an era of labor shortages, growing consumer demand and a younger, more discerning group of millennials?
“Employees have to have passion and believe in their product. We uphold our end of the bargain by producing the highest quality and safest fruit shipped to all corners of the world, but we also focus on maintaining an enthusiastic, involved and healthy workforce,” Howard notes. From boot camp workout sessions during lunch and field staff fiestas to continuing education and scholarships, Domex Superfresh Growers has established programs that help create a better working environment for all of its employees.
Domex has a campus-style facility that promotes the opportunities to run, walk, or just breathe the crisp, clean air during breaks. The company also enlists trained fitness professionals and offers access to on-site showers. In addition, the company has constructed custom-built soccer and football fields to exercise or compete on, during breaks or after work. At the end of each harvest and packing season the company also hosts celebratory lunches and fiestas with staff as a way to say “thank you.”
“We are farmers at our core.”
“Farmers for centuries have understood that we are stewards of the land, and of everything around you… including the people," Robert says. "It is the ultimate irony in life, that if you focus and truly care about others you are rewarded. On the flip side, companies and people who only focus on themselves never figure out why they are not successful.”
The company is also doing much to enhance the opportunities in communities throughout the region. Take the Domex sponsorship and involvement in a local youth community center, the Madison House.
This program is run by the Union Gospel Mission and offers summer and after-school programs that provide a safe haven for youth to help guide them through their educational, emotional and spiritual life.
“It really is a beacon of safety for kids who come from some of the roughest parts of Yakima. They can come here and get away from the challenges in their daily lives, from the violence and poverty, and can get tutoring, meals, even someone to talk to,” Loren tells me. “Ed Kershaw sits on the board for Madison House and has really been engaged with the staff to create a ‘Journey of Hope’ to allow these kids access to more opportunities.”
Bob and Ed Kershaw have always been committed to developing employees’ potential. When the opportunity came up to participate in the University of Washington’s Foster School of Business, they jumped on board. This program offers a Business Certificate Program, which gives participants an opportunity to make a major impact in the Yakima Valley.
"When you give back to the community, you are giving back to those families that have sacrificed so much to help their families succeed.”
Robert tells me, “In some cases, there are first generation immigrants working with us now who have children that are first in their family to become college graduates. These employees work at Domex as sales managers or are traveling the world with incredible careers."
For a company that has grown in leaps and bounds over the past 100-plus years, you’d think the team would be a little more comfortable with its bragging rights.
“We don’t like to come out of the gates beating our chests. It has always been a ‘fly under the radar’ mentality,” Howard notes. “We have a diverse range of growing practices and multiple packing locations. It gives us and our customers the flexibility to adapt and grow.”
The future does not come without its challenges for Domex. Elevating and retaining their talent will only become more of a challenge as the industry becomes more competitive and the company continues to vie for a larger part of the market share.
“We want to make sure we’re still around and providing for the next generation and beyond."
"We asked ourselves how do we go about doing this? How do we find that talent, develop it, and retain it?” Robert asks. “Hopefully people will continue to recognize the genuine appreciation we have for our teammates, and that appreciation will help us continue to recruit talented people to become part of the team. I believe if we do that, our customers will reward us, and our farms, growers and the rest of the business will be rewarded as well.”
In essence, if it is the people that are driving the success of Domex, then it is the people who will remain the primary investment.
“Because we all share the same thinking and the culture is so prevalent, the opportunities are always presenting themselves when you keep the dialogue open,” Howard notes. And they do love to have fun.
Take a certain Will Ferrell sketch from SNL for instance.
Howard laughs, “More cowbell.”
“When someone gets a new customer, we ring a cowbell to celebrate the sale,” Howard says. You can’t help but thrive in an environment that gives you the freedom to contribute openly, inspires you daily, and comes equipped with a Will Ferrell reference for every new opportunity you grab.
“We dream pretty big around here and have a culture of continual improvement. I always say that there are no bad ideas. The only bad ideas are no ideas. Everyone in the company has the obligation to speak up and bring new thoughts and perspectives to the table,” Robert says. “Even if we borrow from SNL.”
So with that said, more cowbell please.
AUSTIN, TX - Marking the one-year anniversary of their fruitful partnership, Whole Foods Market and Instacart have released statistics on just how successful they have been together—particularly in the area of fresh produce.
In just this first year of the partnership, Whole Foods Market customers collectively saved 970,000 hours by shopping with Instacart. Instacart delivered millions of items from Whole Foods over the past year, including:
- 2.2 million bananas, enough to stretch from Boston to Philadelphia if placed end-to-end
- 1.25 million apples, enough to bake an apple pie that would cover the entire infield at a professional baseball game
- 4 million cage-free eggs, enough to serve an omelet to all 971,000 residents of Austin, Texas
- 500,000 avocados, enough to make a cup of guacamole for every fan at four sold out pro football games
Walter Robb, Co-CEO of Whole Foods Market, said the results speak for themselves.
“When Whole Foods Market launched our partnership with Instacart a year ago today, we did so with the belief that our customers would love the speed and convenience of shopping our store shelves from wherever they might be at any given time,” said Walter Robb, Co-CEO of Whole Foods Market. “Our customers clearly love having this convenient shopping option, and Whole Foods Market will continue to provide our shoppers with innovative new choices that deliver great shopping experiences and help make their lives easier.”
Whole Foods Market shoppers had a favorite when ordering groceries delivered by Instacart, data shows—fresh produce. More than 40 percent of all Whole Foods Market shopping baskets delivered by Instacart featured fresh produce items, according to a press release. The top five most frequently purchased products over the past year were bananas, avocados, carrots, lemons, and limes.
"Instacart's partnership with Whole Foods Market has helped lead the way in bringing innovation to the on-demand grocery delivery industry," said Apoorva Mehta, Founder and CEO of Instacart. "By amplifying our shared vision to create a seamless grocery shopping experience, we have been able to provide customers across the country with access to quality, fresh groceries delivered right to their doorstep. We are happy to be working together to give customers a new way to shop that meets their needs and fits their busy lifestyles, and look forward to many great years ahead."
Instacart currently delivers Whole Foods Market groceries in 17 metropolitan areas: Atlanta; Austin; Boston; Boulder; Chicago; Denver; Houston; Indianapolis; Los Angeles; Miami; New York City; Philadelphia; Portland, Oregon; San Francisco; San Jose; Seattle; and Washington, DC.
SAN LUIS OBISPO, CA - After more than 400 tests and four years of research, Cal Poly has developed a new method to prevent browning and reduce the growth of aerobic bacteria, yeasts, and molds as well.
Dr. Wyatt Brown and his team in Cal Poly’s Horticulture & Crop Science Department in the College of Agriculture, Food & Environmental Sciences created a multi-functional formula as an alternative to current anti-browning methods that only focus on enhancing the aesthetic quality of fruits and vegetables.
Though the formula proved effective for various types of sliced fruits and vegetables, the researchers discovered that when applied to pre-cut Granny Smith and Fuji apples, the composition prevented browning and the growth of aerobic bacteria, yeasts, and molds for a minimum period of 21 days.
Cal Poly also states that special packaging is not required to utilize the formula. The formula also does not alter the nature of an organic, non-GMO, or GMO produce item.
The formula utilizes a combination of calcium ascorbate, calcium propionate, and calcium chloride to improve the shelf-life of fresh produce items.
Cal Poly was recently granted a United States patent in June 2015 (U.S. Patent Number 9,044,045) for the anti-browning/antimicrobial composition, according to a press release.
According to the patent, the desire to develop such a formula was motivated by a need for “new compositions and methods for preventing browning and microbial growth in food products with low cost and high effectiveness.”
Cal Poly is currently seeking licensees to commercialize the formula.
JAPAN - September is no longer what marks the coming autumn, Starbucks has seen to that. The coffee giant’s Pumpkin Spice Latte is as much a signal of the changing of the season as the colors of the leaves, but when it comes to this latest pumpkin-centric concoction is it just too much?
Great Ideas reports that Starbucks Japan has introduced a pumpkin sandwich, boiled kabocha to be exact, with lettuce, tomato, almonds, as well as a spread mixing honey, soy milk, and cream cheese.
Starbucks just recently shook up the PSL (pumpkin spice latte)-loving world with its addition of actual pumpkin within its popular latte, but this is a wholly different section of the menu. The report does state, however, that kabocha is a Japanese pumpkin frequently used in the nation’s cooking. Therefore, the item may not be as shocking to Japan’s consumers, and it’s unknown if this item will actually be brought to the U.S.
According to Great Ideas, the latest creation is going for a pretty reasonable sandwich price of $3.67 (440 yen), especially compared to the company’s usual treats like its Chicken BLT Salad Sandwich ($5.95) and its Roasted Tomato and Mozzarella Panini ($5.55). Add that to the fact that the company has a tendency to turn healthy, unconventional items into mainstream food demands, and perhaps this pumpkin will morph into Starbuck’s next seasonal signature.
For all the latest products within the industry, keep checking in with AndNowUKnow.
MONTEREY, CA - The eat brighter!™ campaign continues to sweep the produce industry as it endeavors to reach millennials and their children to encourage healthy eating.
Sunkist's Manager for Advertising and Public Relations, Joan Wickham, discussed working with PMA and joining the eat brighter!™ movements.
“Sunkist does a family brand and pairs really well with Sesame Street, so for us this is a really easy pairing,” Joan told PMA TV.
Joan added that being one of the first companies to join the campaign caused a few nerves that working with PMA put at ease, suggesting that any company interested in participating in the brand should contact the association.
To see Joan’s full experience in working with PMA on Sunkist’s adoption of the eat brighter!™ concept, watch the short video below.
Mucci Farms also joined the movement, and Key Account Manager Nick Williams shared that Elmo and Big Bird have made a marked contribution on sales for the company.
“Sales have increased with seeing Elmo’s face on the front of any bag, seeing Big Bird’s face on a bag increases sales” Nick said, saying that these characters, and hopefully Cookie Monster, help to promote the company and its message to parents as they shop.
Nick’s full interview featuring eat brighter!™ on Mucci’s packaging can be seen below.
As we previously reported, PMA’s second quarter reflected an average incline upwards of three percent in sales from participants in eat brighter!™, with some reporting increases as high as 11 percent.
To learn more about the at brighter campaign, or to join the movement, you can go to www.pma.com/events.
CINCINNATI, OH - It's another executive shakeup for Kroger this year. The company has announced the appointment of four new Executive Vice Presidents to lead key lines of the company’s business.
Mike Donnelly has been named EVP of Merchandising, Chris Hjelm has been named EVP and CIO, Fred Morganthall has been named EVP of Retail Operations, and Mike Schlotman has been named EVP and CFO. Kroger also said that each new appointee has been assigned additional responsibilities to help streamline the company’s decision-making under this new organizational structure.
"Kroger is fortunate to have an exceptionally strong group of leaders across our company," said Rodney McMullen, Kroger's Chairman and CEO. "Our entire senior leadership team brings unmatched depth and experience to achieve our goals. This new organizational structure will help Kroger achieve laser-focus to accelerate growth, improve our connection with customers and deliver value for shareholders."
Kroger also announced the retirement of Senior Vice President of Retail Divisions Geoff Covert, and the promotion of Sukanya Madlinger as his successor. Madlinger currently serves as the President of Kroger's Cincinnati/Dayton division. She will be subsequently succeeded by Tim Brown, who currently serves as President of Kroger's Delta division, based in Memphis. Brown's successor will be named at a later date.
"We have valued Geoff's insights and contributions to our manufacturing and retail operations teams. We thank Geoff for his many years of dedicated service to Kroger, and wish him and his family the very best in retirement,” McMullen continued. “Sukanya is an outstanding executive whose leadership has always reflected her passion for our associates and the customers we serve.”
This has been just the latest in a long list of executive restructuring this year. In June, Kroger named Fred Morganthall as SVP of Retail Divisions and Rod Antolock as President of Harris Teeter stores. Also in June, Kroger's President and COO Mike Ellis announced his retirement.
GUADALUPE, CA - Apio’s latest Eat Smart® salad kit is offering consumers a taste of Southwest flavor with a new generous superfood-packed blend.
Available this month in 10-ounce and 24-ounce bags, the Eat Smart® Southwest Vegetable Salad Kit combines savoy cabbage, red cabbage, radishes, carrots, and kale with crunchy corn, yellow and blue tortilla strips, cheddar cheese, and a chipotle ranch dressing for a fresh, gluten-free take on Southwest cuisine.
Anne Byerly, Vice President of Marketing, said in a press release that many consumers are looking for healthy eating options that are easy to integrate into their busy lives.
“This hearty, superfood-packed salad delivers an appealing taste experience that busy consumers can prepare in a snap,” she said.
Apio also offers several other popular salads in its gourmet line, including Sweet Kale, a gluten-free Wild Greens & Quinoa, and a Beets & Greens vegetable salad kit.
In an online survey of 7,500 purchasers of Eat Smart salad kits, conducted in April 2015, nine out of ten consumers who had tried one of Apio’s salad kits said they would buy it again, according to a press release.
“Our gourmet vegetable salads provide consumers with delicious, highly nutritious, restaurant-caliber salads that they probably wouldn’t have time to create from scratch,” Byerly continued. “The Southwest Vegetable Salad Kit gives them another good reason to keep coming back for more.”
Keep an eye out for this latest nutrient-rich salad kit from Apio. For the latest on the industry’s newest products, stick to AndNowUKnow.