CHICAGO, IL - At this year’s United Fresh conference in Chicago, IL, I spoke with Pete Overgaag, President and CEO of Hollandia Produce about the company’s Organic Butter Lettuce and Organic Watercress programs.
“What’s special about our products is that we grow them hydroponically in the greenhouse, and by doing so we’re able to leave the roots on when we harvest them,” Pete tells me. “Hydroponics are really in the spotlight in a good way at the moment, especially in California because of the drought. Hydroponics conserve a lot of water versus regular farming.”
Pete also showed me Hollandia’s clamshells, or what they refer to as “mini greenhouses.” These are used to protect the lettuces so the consumers can bring them home while they are at the peak of quality. Hollandia’s living watercress is also bagged to maintain the same high standard for quality.
To learn more about Hollandia’s Living Lettuce programs, watch my full interview with Pete Overgaag in the video above.
KANSAS CITY, KS - Associated Wholesale Grocers’ Board of Directors has announced that current company EVP of Operations David Smith has been selected to succeed Jerry Garland as President and CEO beginning in January of next year.
David has had a long and successful career in the food industry, beginning as an independent store owner and then rising the ranks to work in various assignments at the wholesale level in positions with Fleming Companies nearly 30 years ago. David joined AWG in 2003 and opened the new Gulf Coast Division in Louisiana in 2013 as Senior Vice President, General Manager, according to a press release.
“AWG is fortunate to have someone as experienced in family-owned businesses as David with an experienced leadership team in place to support his efforts,” said Barry Queen, Chairman of the Board for AWG. “The AWG board has worked closely with Jerry over the past few years on a succession plan that will provide a smooth transition and continue the momentum that the company and our members have benefited from over his time as CEO.”
Jerry has been serving AWG as President and CEO since 2009, and has grown the company into a nine billion dollar wholesale cooperative operating nine distribution centers. During his tenure the company says that sales have grown by 31%, increasing net income by 70% while lowering operating expenses.
Barry added, “On behalf of the entire membership we want to thank Jerry for his 25 years of service and particularly for the outstanding results during his tenure as CEO.”
The Board of Directors announced that Jerry will continue to serve AWG in an advisory capacity after the transition is complete, as well as continue his role of Chairman of the Food Marketing Institute until the end of his current term.
LA CAÑADA FLINTRIDGE, CA - The Allen Lund Company has been named one of Food Logistics’ Top 3PL & Cold Storage Providers for 2015.
David Lund, Vice President of Sales and Operations, said in a statement that the company was honored to be chosen as a Top 3PL and Cold Storage Provider.
“We want to thank the hard work of our employees, and their exemplary customer service, for helping the company achieve this listing,” said Lund. “Our carriers and customers are deeply appreciated and we respect their loyalty to the company throughout the years.”
Food Logistics is a publication that is dedicated to global supply chain solutions for the food and beverage industry. The Top 3PL & Cold Storage Providers serves as a resource guide of third-party logistics and cold storage providers whose products and services are critical for companies in the global food and beverage supply chain.
This year’s list of providers reveals that more providers are adding new services to their portfolios to meet industry demands, including compliance with food safety and transportation regulations, according to Food Logistics. These same 3PLs and cold storage providers are improving their existing services to achieve more accuracy, improved efficiencies, and cost reductions.
This is the next honorary title in a series of awards the Allen Lund Company has won since its establishment. Among these previous awards, the Allen Lund Company was also selected as a 2015 Top 100 Logistics IT Provider by Inbound Logistics.
INDIANAPOLIS, IN - Tanimura & Antle and The Produce Mom® have announced that together they have launched a #FamilyFarming Campaign to bring consumer awareness to Tanimura & Antle’s company blog, titled Family Farming.
“At Tanimura & Antle, we pride ourselves in being innovative conventional farmers and true stewards of the land,” says Caitlin Antle-Wilson, Sales & Marketing Director at Tanimura & Antle. “Our blog, Family Farming, as well as our partnership with The Produce Mom, are great ways for Tanimura & Antle to share our story.”
Including a Pinterest contest to encourage consumers to follow Tanimura & Antle on Pinterest, the campaign encourages social sharing of specific blog content. Particularly, the company would like to highlight Brian Antle’s recent Forbes Award for Plant Tape, sustainable hydroponic farming, and factual answers to common consumer inquiries surrounding farming practices, produce shelf life, and at-home vegetable preparation.
“The celebration of Tanimura & Antle as an American Family Farm is ideal for Labor Day conversation on Social Media,” elaborates Lori Taylor, Founder of The Produce Mom. “Tanimura & Antle consistently pays tribute to their farm workers, through programs such as the T&A 20 Year Club, housing developments, and more. I’m excited to tell the #FamilyFarming story!”
According to a press release, the #FamilyFarming Pinterest contest will run through September 2, 2015. Blog posts, social media promotion, and fresh produce giveaways will also be part of the #FamilyFarming campaign, so stay tuned!
YAKIMA, WA - Borton Fruit and Tajin® seasonings are joining forces for in-store demos to ramp up excitement for the new apple crop this season.
The demos begin this weekend in southern California and will run through the end of the month. Additional demos featuring the proprietary mix of Mexican chilies, dehydrated lime juice, and sea salt are currently being planned for September.
“We have several retail partners who were looking for something new to start the season, and Tajin seasonings helps provide a great interactive demo experience for consumers,” said Lindsay Ehlis, Assistant Director of Sales and Marketing for Borton Fruit. “Fresh apples and Tajin seasonings are a great flavor combination and appeal to a broad ethnic demographic.”
Juan Carlos Limon, U.S. Marketing Manager for Tajin seasonings, said that the unique blend adds a ‘zing’ to a wide variety of fruit and vegetables. He added that Tajin seasonings have been imported in the U.S. for over 10 years and the popularity and acceptance of seasoning fruits and vegetables continues to grow.
“You could once find Tajin only in select Hispanic stores, but Tajin is now distributed in local, regional, and national retailers,” he said.
Borton Fruit also offers bagged apples featuring Tajin sachets (packets) in either .14 oz or 0.05 oz sizes.
Keep an eye out for these special retail demos if you’re in the area!
ZAANDAM, NETHERLANDS - Ahold has released its Q2 2015 financial report, the first since the official confirmation of its impending merge with Ahold. In the report, sales records indicated that the company saw a significant boost in sales, which CEO Dick Boer believes may be due to increased produce offerings.
“We launched many new initiatives for our customers especially in the area of healthy living, as we’ve improved our fresh and produce offerings across our businesses in the U.S., the Netherlands, and the Czech republic,” Boer said in the company’s Q2 2015 video presentation. “We are rolling out a new produce department format and during the quarter it was rolled out to another 92 stores, bringing the total to 167 stores.”
In total, Ahold rose sales by 17.1% to reach over $9.7 billion. The company grew in sales, operating income, and net income, and delivered strong free cash flow. As far as the company’s U.S. operations, sales grew by 22.5% to hit over $6 billion. Also, just last month, Ahold USA announced that Stop & Shop New York Metro has entered into a conditional agreement to acquire 25 stores from A&P in the Greater New York region.
As far as the much-anticipated merger with Delhaize, Boer had little to add that has not been previously reported, but did comment on the company’s excitement to get things moving.
“I understand that you probably have some questions related to the merger with Delhaize, today I can only say that we are on track and our pleased with the progress we are making,” Boer said during a call to investors. “As previously communicated, we expect to have an AGM in the first half of 2016 and transaction to be completed mid-2016. And we are look forward to an exciting future together.”
Other highlights from Ahold’s Q2 2015 financial report include:
- Sales excluding gas up 4.8% at constant exchange rates
- Underlying operating margin of 3.8%, down 0.1 percentage points
- Strong free cash flow of €367 million, up €297 million
- Sales in the Netherlands up 6.8%
- Sales in the United States excluding gas up 2.1%
- Consumer online sales up 22.8% (at constant exchange rates)
Keep checking in with AndNowUKnow as we continue to follow Ahold and its future merger plans.
MINNEAPOLIS, MN - Target has announced its Q2 2015 financial report, with CEO Brian Cornell citing fresh foods and healthy foods as a major contributor to its positive sales growth in the quarter.
“We're also focused on ways to elevate our food presentation and experience to fit the way the guests live and shop,” Cornell said on a conference call to investors. “We know we have an opportunity to provide fresh, healthy options and more relevant and localized assortment, as our guests are responding to healthy choices we're offering today. Within food, our market share and wellness is already double our food share overall.”
On the call to investors, Cornell shared that Target has seen double-digit sales growth in fresh and natural categories, which he believes shows that consumers are responding well when they enhance those offerings.
In total, second quarter sales increased 2.8 percent to $17.4 billion, reflecting a 2.4 percent increase in comparable sales combined with sales from new stores. According to the release, Target returned $1 billion to shareholders in the second quarter through both dividends and share repurchases.
Other highlights from Target’s financial report include:
- Second quarter Adjusted EPS was $1.22—above the company’s expectations of $1.04 to $1.14.
- Target expects full-year 2015 Adjusted EPS of $4.60 to $4.75, up from $4.50 to $4.65.
- Segment EBIT was $1.3 billion in second quarter 2015, an increase of 17.5 percent from 2014.
- Second quarter EBITDA and EBIT margin rates were 10.9 percent and 7.7 percent, respectively.
Keep watching AndNowUKnow to see the future of Target’s fresh ventures.
SOLEDAD, CA - Twenty-five products marketed under the Josie’s Organics line have been verified by the Non-GMO Project.
These products include USDA-certified organic beets, radishes, broccoli, cauliflower, celery, herbs, kales, lettuce, and green, according to a press release.
Rod Braga, President and CEO of Braga Fresh Family Farms, said in a statement that the Non-GMO Project verification of Josie’s Organics products is a tribute to the way the company has always farmed and will continue to farm in the future.
“At Braga Fresh Family farms and through Josie’s Organics, we have a responsibility to continue our family tradition – remember the past, be mindful of the present, and always look to the future,” he said.
Inspired by Rod Braga’s grandmother Josie, the Josie’s Organics brand offers more than 25 USDA-certified organic vegetables, and continues to grow with new products in trial on a regular basis. The Non-GMO Verification assures customers and consumers of the Braga family’s commitment to sustainable farming.
The Non-GMO Project is North America’s only independent verification for products made according to best practices for GMO avoidance.
WENATCHEE, WA - This year’s Washington Bartlett harvest is officially underway, with initial harvests revealing an increase in small-sized pears.
“Our horticulturists told us to anticipate having more small Bartlett pears to sell and that’s the story,” said Steve Castleman, Senior Vice President of Sales for CMI. “This will require most retailers to rethink their Bartlett pear plans because for the first time in several years the promotable pears will be small bagging-sized fruit.”
Castleman explained that sizing in Anjous and Bosc may be normal, but the boost in small Bartlett pears creates new opportunities for retailers for the year.
“Last year we had to turn retailers away who wanted to jump on our pouch bags because we didn’t have the supply of small fruit,” he said. “That’s completely changed this year with fewer large Bartlett pears and significant, promotable volume in our bagging sizes.”
This year, the increased supply of smaller Bartlett pears for bags will allow retailers to get creative, according to Steve Lutz, Vice President of Marketing for CMI. He says small fruit is perfect for premium pear packages and Nielsen data for the past 52 weeks shows that pear category growth is currently being driven by pear pouch bags.
Over the past year for the total U.S., Nielsen scan data shows that random weight pear volume declined by 9.4% while bagged pears increased by 18.2%, Lutz shared. “The growth is being driven by bag sizes of 3 lbs and smaller. Any retailer that hasn’t jumped on these packaged pears is missing sales.”
While the Nielsen data shows packaged pears driving category increases, the two-pound pouch bag is the key opportunity for rapid growth. Over the past year, sales of 2 lb pouch bags are up by 125%. According to a press release, consumer feedback is indicating that shoppers like the 2 lb pouch because it is small enough to encourage trial by light users.
“50% of U.S. households have two people or less,” said Lutz. “The average pear consumer is an infrequent buyer so they are cautious. With a lower price point consumers see CMI's 2 lb Sweet Gourmet™ Bartlett pear pouch as lower risk than buying a larger, more expensive bag enabling us to attract new consumers into the category.”
CMI also believes the success of pouch bags is related to the strong graphic presentation on the packages. Bagged pears were traditionally packed in low-cost poly bags conveying a low-quality message to consumers, Lutz shared but the new images of CMI’s pouch bags appeal strongly to consumers looking for both high-quality fruit and the convenience of not having to select individual pears.
IRWINDALE, CA - Consumer Packaged Goods veteran Dan Redfern is joining Ready Pac Foods as its new Chief Financial Officer.
Redfern will be responsible for overseeing Ready Pac’s financial goals and objectives, financial planning, record-keeping, and company reporting. He will report to CEO Tony Sarsam as he assists management with all matters relating to budget management, cost benefit analysis, forecasting needs, and securing new funding, according to a press release.
“Dan’s track record of more than 30 years of strategic planning, extensive knowledge of financial operations, and collaborative leadership makes him an excellent partner to have at the table,” said Sarsam. “I am thrilled to welcome Dan and look forward to the immense amount of experience he has to offer to help grow our business.”
Redfern has a significant track record for improving the bottom line across various industries, including Consumer Packaged Goods, Finance, and Consulting.
Prior to joining Ready Pac, Redfern served as CFO for Pop Chips, Inc., where he developed operating plans, implemented KPIs, and improved company gross margins by 10 points. During his time at Circle Foods/Tyson Foods, he managed large capital projects and drove a $9 million EBITDA turnaround within one year of his time at the company. Lastly, his accomplishments at PepsiCo include re-engineering a “go-to market” strategy and leading a business turnaround initiative of the PBG operating division, which led to increased market share and unprecedented profits.
Redfern will be based in the Irwindale, CA headquarters.