WENATCHEE, WA - Stemilt’s Lil Snappers® apples and pears will be making their way back into kids’ lunchboxes this fall just in time for back-to-school promotions.
According to Nielsen scan data from the 2014/15 season, Lil Snappers 3 lb. pouch bags outperformed other pear pouch bags in the marketplace.
In 2012, Nielsen data showed that the average size of pears to be 1.7 pounds per trip. During the 2014/15 season, Lil Snappers 3 lb. pouch bags of pears had an average retail of $1.59 per pound while 2 lb. other brand pouch bag pears averaged $1.78 per pound, according to a press release. At three pounds, Lil Snappers pears averaged $4.77 per bag at retail, while 2 lb. pouch bags of pears averaged $3.56 per bag. The larger package size of Lil Snappers results in 25 percent increase in dollars over 2 lb. pouch bags of pears.
Roger Pepperl, Stemilt’s Marketing Director, explained that Lil Snappers boost the purchase size for pears and ensures dollar sales increase in the category as well.
“The data shows that Lil Snappers 3 lb. pouch bag pears return the highest retail dollar transaction size of all pear pouch bags in the marketplace,” said Pepperl. “In 2014/15, Lil Snappers 3 lb. pouch bag pears also moved 7 times more volume than 2 lb. pear pouch bags.”
The Lil Snappers line offers the following apple varieties: Gala, Fuji, Braeburn, Honeycrisp, Pinata®, Granny Smith, and Pink Lady®. There are also four pear varieties available, including: Bartlett, d’Anjou, Bosc, and Red Pears.
“Bulk displays will be the main merchandising vehicle for apples and pears this season, but with greater volumes of premium, kid-sized fruits available, Lil Snappers are a great line to carry to attract today’s busy parents who want to give their kids healthy snacks and school lunches,” Pepperl continued.
Pepperl also took the time to comment on the apple and pear harvest in Washington State. An early spring and warm summer temperatures have led to an early harvest this season. Gala apples and Bartlett and Starkrimson pears are among the first varieties harvested each August. Washington’s apple crop and the Northwest pear crop are both down in volume over last year, but with Lil Snappers offering smaller fruit in its 3 lb. pouch bags, promotional opportunities are still abound.
“The warm temperatures we experienced in the Northwest this summer tend to slow down the size development of apples and pears, and as a result, we expect these fruits to be down a size from last year,” Pepperl said. “This adds volume of premium kid-sized apples and pears, making our Lil Snappers line a great promotion vehicle, especially during the fall as the new crop comes off the tree and parents are thinking of what to put in lunches as their kids head back-to-school.”
Each Lil Snappers 3 lb. bag features a sturdy handle and a press-to-close re-sealable ziplock. There is an average of 9-11 apples or pears inside each bag, which is the ideal size for fruit purchasing households with kids.
DELANO, CA - With an early kick-off to the grape season, new packaging, and using new technologies to promote grape usage and consumption, Columbine Vineyards is lined up for a busy season.
“We are off to the races and out the gate fast! We were ten days earlier than normal and we are having a bountiful and abundant harvest,” Anthony Stetson, Sales Manager at Columbine, tells me. “Yields are up across the board due to larger berry size and quality is excellent.”
Right now the company is currently offering Thompsons, Majestics, Summer Royals, and Red Globes, with its proprietary Milano® just around the corner.
“Milano® will start the first week of September,” Anthony said, adding that it is named after one of the founding fathers of Columbine Vineyards, Milan (Mila) Caratan.
Not only did Anthony say that this grape is unique in itself due to its delicate flavor profile, but it will also be coming out wearing a new outfit to the grape packaging line. “We are looking forward to launching this tasty treat in our new high graphic logo stand-up eco-friendly bag!” he said.
Columbine’s new petite bag offers a different option from the standard grape bag size for retailers and consumers alike when it comes to the fall product mix. According to Anthony, it fills a niche for retailers with higher FOB varieties by reducing the cost per bag to the consumer.
“Retailers like the smaller bag due to a lower ring at the register per bag and consumers love the convenience of a smaller portion to snack on. Across the board, we have received wonderful comments and positive feedback regarding our new packaging.”
Columbine also provides informational, colorful POS and POP materials to give retailers the tools to best utilize grape promotion opportunities, as well as unique cooking and information videos for grape usage and the growing process like the one below.
The company is showing off all things grapes, from how to use them to life through its eyes.
“We have also began to broadcast live videos via Periscope under the CoVi Grape Girls!” Lauren Olcott, Marketing Representative for Columbine, tells me.
To see the newest videos from Columbine Vineyards, check out this YouTube channel here.
Keep checking in with AndNowUKnow for all the latest packaging and product updates for the produce industry.
PLANT CITY, FL - “Robotics are changing the game. Our automated strawberry picker will be able to work at least 20 hours per day, including weekends,” Gary Wishnatzki, Co-Founder of Harvest CROO and Owner of Wish Farms, shares with me as we discuss the latest patent pending technologies that are gaining interest from strawberry growers.
This technology will allow growers to avoid picking during the hottest part of the day when berries bruise the easiest. “In this sense it will take less time and energy to cool the fruit by picking in the evening hours and will allow for better utilization of cooling facilities and increase throughput by spreading out the load of warm incoming fruit over longer harvest hours,” Gary adds.
Gary also tells me that shippers could add acreage without having to purchase additional cooling resources. Since the volume would be more spread out, there is also the potential to double the capacity that coolers can accommodate.
While they have yet to name the strawberry picker, they have created a logo to accompany the new harvest technology and appropriately dubbed it Harv.
Essentially this patent revolves around the concept of a picking wheel. Named after Gary’s Harvest CROO partner and Chief Technical Officer, Bob Pitzer, the Pitzer Wheel utilizes “conservation of motion principles” with robotic picking heads that can achieve 360 degrees of rotation and will decrease the amount of movement the robot has to accomplish. A series of claws on the wheel pick berries. They will then be transferred to a packing area, where they will be inspected and packed into consumer units.
See the entire video of the Pitzer Wheel here: https://www.youtube.com/watch?v=uB1JiVGTBo8
The picker uses Stereo Vision with two cameras mounted on the harvester with the lead camera situated to identify the berry’s color, mass and size to decide whether or not it should be harvested. The second camera uses triangulation to pinpoint the berry for the claw to gently pick and place in the packaging.
The benefits are far reaching for the grower, Gary tells me. “Essentially we will be lowering harvest costs by increasing the speed and duration at which it can pick and pack berries in the field.”
Gary adds, “Weighing packages will be a huge savings to growers, as well. Strawberries are currently packed visually until full. Over-packs can be 10% or more. Larger packs are estimated to be over-packed by even as much as 20-30%. On the opposite side of the spectrum, this technology can also eliminate rejections due to being short weight.”
Growers can also possibly reduce the usage of plastic by over 30%, by using a film lid versus a clamshell pack which the program plans to provide. In regards to precision agriculture, the machine will also be involved in scouting as it travels through the field, taking images of plants which will then be aligned with a database of hundreds of images that can provide early warnings of things like pest presence which will help growers manage and even reduce pesticide usage.
NEW YORK, NY - In a partnership with Roundy’s Supermarkets, BrightFarms has officially broken ground on the BrightFarms Chicagoland Greenhouse in Rochelle, IL. The BrightFarms Chicagoland greenhouse will be 160,000 square-feet and grow over 1,000,000 pounds of fresh produce exclusively for the Roundy’s chain.
“Consumer demand for local is growing exponentially—and for good reason: long distance produce hurts the environment and compromises freshness, quality and taste,” said BrightFarms Chief BrightFarmer (CEO), Paul Lightfoot. “This greenhouse farm will allow Roundy’s to provide its customers with year-round produce that is not only garden-fresh, but that conserves land and water, eliminates agricultural runoff, and reduces greenhouse gas emission."
Slated for completion in early 2016, the company expects the greenhouse to become the most productive farm in the Chicagoland market, the most sustainable source of year-round baby greens and tomatoes in the state, and among the most productive salad greens farms, per square foot, in the world. According to a press release, it's expected to create permanent green collar jobs, significantly reduce food miles, and improve the environmental impact of the food supply chain.
The BrightFarms Chicagoland greenhouse will provide salad greens, herbs, and tomatoes using 80 percent less water, 90 percent less land, and 95 percent less shipping fuel than conventional produce companies and, on average, 64 percent less energy to grow its products than the items it replaces on supermarket shelves. Furthermore, all produce will be pesticide-free.
"We're thrilled that our stores will be able to deliver consumers the freshest, most local greens, herbs and tomatoes possible,” said Bob Mariano, CEO and Chairman of Roundy's Supermarkets. “BrightFarms is a model for the future of food and we look forward to exemplifying, together with them, what that future should look like."
Rochelle Mayor Chet Olson also chimed in about BrightFarms’ new development, saying the city is honored to be involved with the project. Olson also revealed that by 2016, the project will have created over 23 local green collar jobs and over 100 local construction jobs, meaning more dollars for the Rochelle community.
MONTVALE, NJ - The A&P saga continues. The Wall Street Journal reports that the retailer’s plan to sell 120 stores and close 25 more has hit a roadblock from those that depend on a successful conclusion.
To read Joseph Checkler’s full report, click here.
As we previously reported, the chain announced its intention to file its second bankruptcy in five years, as well as selling or closing more than half of its nearly 300 stores as quickly as possible.
“Great Atlantic & Pacific Tea Co. is facing opposition to its plan to quickly sell or close nearly half of its stores in bankruptcy court, including from landlords and the Pension Benefit Guaranty Corp.,” Checkler wrote.
According to the report, pensions for 25,815 A&P multi-employer plan workers are currently underfunded by $302.5 million, as listed in the PBGC’s filing.
In order to account for the bidder assuming that a portion of pension liabilities would reduce the PBGC’s claim made in the case, the corporation calls for a change in A&P’s auction procedures to “encourage assumption” of pension liabilities by a proposed buyer, the WSJ reported.
“The global bidding procedures should require all bidders to expressly state their intention with respect to the pension plans,” PBGC lawyers said in their filing, according to the report.
A group of landlords for some stores being sold are also wary, with concerns that they will not be properly informed of possible new tenants before next week’s hearing. Checkler wrote that the landlords’ lawyers only request enough time and information, and are currently working with the counselor’s council to make sure their needs are met.
AndNowUKnow will keep you posted on this story as it develops.
CHINA - Last week, Bayer CropScience took to China to showcase its latest contributions to sustainable potato production at the 9th World Potato Congress, near Beijing at the Badaling International Conference and Exhibition Center. Under the theme ‘Innovating Together for Sustainable Potatoes,’ experts from the company presented new products and approaches that underline Bayer CropScience’s role as a potential innovator in the field.
"At Bayer we are fully committed to delivering on our mission statement ‘Science For A Better Life’ by sharing our vast expertise and providing new technologies to farmers," said Albert Schirring, Global Potato Manager for Bayer CropScience. "Our core competencies lie in developing and supplying integrated crop solutions that are locally adapted and tailored to the individual needs of our customers, who are mainly farmers but also include other stakeholders along the potato value chain. The common goal is to help drive a sustainable productivity increase and to improve crop quality."
Bayer CropScience has already developed a strong portfolio of crop protection products, according to a press release. Key innovations presented at the congress include:
- Emesto™, a high performing fungicide to manage tuber and soil disease.
- Movento™, an innovative tool to provide sustainable control of the Zebra disease vectored by psyllids.
- Velum™, a powerful tool for control of nematodes with a favorable safety and environmental profile offering long-lasting control at very low application rates.
In addition, to these products, the company also recently innovated the biological fungicide Serenade™, which enhances Integrated Pest Management systems and provides a new tool in resistance management when used in combination or rotation with chemicals.
"With the Chinese central government’s decision to position potatoes as an alternative staple food, the crop is expected to play an important role in safeguarding the domestic food supply," says Rob Hulme, Country Head of Bayer CropScience in China. "The country is already today the largest producer of potatoes worldwide and potato cultivation still has huge untapped potential in terms of quantity and quality. Apart from contributing to Chinese food security and more diversity in diets, higher consumption of the tuber crop could help promote long-term sustainability of the local agriculture. Compared to other staple crops, growing potatoes is less demanding in terms of water requirements and relies much less on irrigation.”
Besides assisting farmers in the field with its products, Bayer CropScience aims to foster stronger links along the supply chain to promote sustainable agriculture as well. In its Food Chain Partnership projects, the company tries to bring together farmers, traders, processors, and retailers for the benefit of all partners involved and ultimately the consumer at home. Customers and partners benefit from efficient traceability systems, support for global certification and extensive market access know-how, Bayer says.
Keep looking to AndNowUKnow as we update you on what’s next for Bayer CropScience.
CHINA - Movies and cartoons, and some kung pao experiences, have brought to mind images of white lights and smoking ears when it comes to biting into peppers. But a recent study is arguing quite the opposite: spicing up the food of your life could actually prolong it.
A seven-year longitudinal study examining the diets of nearly 500,000 people showed a 10 percent reduced risk of death in those who consumed chili peppers and other spicy foods one to two times a week, The Guardian reports.Those who ate spicy food between three and seven days a week saw a 14 percent decrease in risk of death.
The study was performed by a team of international authors, led by researchers at the Chinese Academy of Medical Sciences and published in BMJ.
It is a debate that continues to heat up (pun intended).
“There is increasing scientific interest in spicy foods. Many potential benefits have been suggested for chilli or its bioactive compound capsaicin, including but not limited to antimicrobial, anti-oxidant, anti-inflammatory, and anti-cancer properties, a beneficial influence on gut microbiota, and anti-obesity effects through thermogenesis and appetite, energy balance, and weight management,” Dr. Nita Forouhi, Programme Leader of the Nutritional Epidemiology Program at the MRC Epidemiology Unit and Public Health Physician in Cambridge, UK, wrote in a BMJ follow up.
Questions were raised about the difficulty between correlation and cause when it comes to this form of study because of other factors that could be involved between those who do and do not incorporate spicy foods and chili peppers into their diets.
“Maybe this is something in the way spices are used in Chinese cooking, or [it is] related to other things people eat or drink with the spicy food,” Kevin McConway, Professor of Applied Statistics at the Open University, told the Guardian. He added that the relationship between eating spicy food and a lower death rate was apparent really only in people who didn’t drink alcohol at all, as well as a number of cultural differences that could have contributed to why this pattern was found.
Dr. Forouhi agreed that the study should be seen more as grounds for hypothesis and more questions than a definitive conclusion, though she listed it merited several strengths, such as including ten different regions of China representing both urban and rural settings, a prospective design, and applying statistical methods appropriately. She also commended the authors for acknowledging common epidemiology issues and their efforts to prevent them. But here, conclusion was sound.
“Future research is needed to establish whether spicy food consumption has the potential to improve health and reduce mortality directly or if it is merely a marker of other dietary and lifestyle factors,” she wrote. “The added contribution of spicy food intake to the benefits of a balanced healthy diet and healthy lifestyles also remains to be investigated. However, the current findings should certainly stimulate dialogue, debate, and further interest in research.”
So while the questions still remain, the increase in scientific and consumer interest continues to bring peppers further into the spotlight.
OAK BROOK, IL - McDonald’s announced it has cut 225 corporate employees in what the company says is part of a push to recapture profitability for its fast food business.
Cuts so far have included about 135 positions at its corporate headquarters in Oak Brook, IL, around 15% of its corporate workforce there. An additional 90 positions are being cut overseas, the company added, all of which were notified last month. According to AP, the company has cut a total of 350 jobs within the past nine months.
Today's corporate restructuring does not come as a surprise to shareholders, the publication Eater reports. Just months after ousting former its CEO and replacing him with Marketing Executive Steve Easterbrook, Easterbrook announced a broad turnaround plan acknowledging the tight financial position the company was in, as well as increased competition in the U.S. and abroad. Now putting a greater emphasis on healthy eating with trials of kale bowls in Southern California, avocado and spinach centric breakfasts in Australia, and customizable lettuce burgers, the company has still not found the success it's been counting on.
In its flagship U.S. market, the company last month reported its seventh straight quarterly decline in sales at established locations.
Stay tuned as AndNowUKnow continues to follow the business’ restructuring plans and its ventures into produce.
WENATCHEE, WA - Apple season is on the way, and reports are indicating marked changes in trends for demand. Steve Lutz, Vice President of Marketing at CMI, took the time to discuss some of the company’s expectations as far as sizing, packaging, and a shift in consumer apple tastes.
To hear my entire conversation with Steve, listen to the audio interview above.
“Reds and golds have sort of been the icons of the Northwest apple industry for over 50 years and this year Honeycrisp have been in high demand and there’s an anticipation of a 33 percent increase in the coming year,” Steve tells me.
CMI also just released estimates for the 2015 apple crop statewide in Washington, which reflects some significant changes in Washington orchards that could result in a predicted 10.5 percent decline from last year’s record harvest, something Steve stated in a press that is not uncommon after a bumper crop like that of 2014.
Steve also indicated a focus on the company’s pouch bag this season due to an expectation in smaller sizes for the 2015 season, which look to be a consistent result across the board.
“We’re hearing from horticulturists that fruit size is anticipated to be smaller this year, down one to two sizes, so certainly that’s coming in to play,” Steve said, explaining that it has been a warmer season which could influence the size. “That does indicate that we’ll have a greater percentage of our crop going into our pouch bags. The pouch bag offers a great value and a terrific package for consumers.”
Steve also added in the release that the hidden news in the crop report is newer variety apples continue to make up for the production declines in legacy varieties.
“CMI growers have made huge investments so that we have plenty of high-colored Honeycrisp on the way. To maximize the success of this variety, we’re introducing our new Happy Bee™ Honeycrisp pouch bag program, which will drive retail excitement this Fall. We’ll also have significant increases in production of our popular branded apples like Ambrosia™, KIKU® and Kanzi®.”
The company also added that organic apple and pear production are a spotlight for the coming season. “CMI leads the organic apple and pear category with our #1 Daisy Girl brand. Our growers estimate that in the coming year our production of our Daisy Girl Organic apples and pears will jump by about 10 percent.”
Steve expressed excitement for that news due to the increasing popularity for the organic category.
Keep checking in with AndNowUKnow for all the latest apple and fresh produce updates.
PHOENIX, AZ - With news of Sprouts Farmers Market’s recent executive shakeup, the company also reported its latest financial results for the second quarter of 2015.
Sprouts saw a 21 percent increase in net sales from the same period last year, topping $902 million for the quarter. This was driven primarily by strong performance of new stores, as well as comparable store sales growth of 5.1 percent.
Over the course of the second quarter, Sprouts opened eight new stores, one each in Alabama, Arizona, California, Colorado, Georgia, Oklahoma, Missouri, and its first store in Tennessee. To date, four additional stores have opened in the third quarter, for a grand total of 22 new stores opened in 2015. The company said in its report that it is still on track to open 27 stores this year.
Doug Sanders, the former President & CEO, and now, Executive Chairman of the Board, discussed these recent results in a conference call with investors. He explained that the company continues to make solid progress into 2015 with a strategic focus on broadening its appeal to everyday grocery shoppers across age groups and demographics.
As for Sprouts’ plans for expansion, Sanders said during the conference call that the company will continue to focus on growth in existing markets to offset the investment in its new market expansion strategy.
“We see this as an effective long term strategy for several reasons,” he said. “One, new stores in existing markets open with higher productivity and achieve expected returns much more quickly than new stores and new markets. Two, we’re able to gain leverage in existing distribution, advertising, and supervision cost which increases the overall profitability of the market. And three, we’re able to expand both our market share and brand recognition with a greater number of stores in the trade area.”
Sanders also discussed expanded daily offerings into four additional stores this quarter, including features such as a new salad bar, prepared proteins, healthy side dishes, and an improved assortment of pantry meals and side dishes. Sanders said that Sprouts plans to roll out these offerings into more stores in 2016 and beyond.
“I continue to be very optimistic about the future of our company and the tremendous growth still in front of us,” he said.
Other highlights from Sprouts’ Q2 2015 include:
- Net income of $31.3 million and diluted EPS of $0.20
- Adjusted net income of $35.0 million; a 16% increase from the same period in 2014
- Adjusted diluted EPS of $0.22; a 10% increase from the same period in 2014
- Adjusted EBITDA of $77.6 million; a 12% increase from the same period in 2014
- New $450 million revolving credit facility; $160 million outstanding after $100 million voluntary pay down
To see Sprouts Q1 2015 financial report, click here.
Stay tuned for more on Sprouts Farmers Market as we follow the company’s financial performance into Q3 2015 and beyond.