DELANO, CALIFORNIA & MISSION, TEXAS - Wonderful Citrus is growing its business, having just announced that it has acquired Texas Citrus Exchange (TCX), based in Mission, TX.
“The operations of TCX are a perfect complement to our citrus business,” David Krause, President of Wonderful Citrus, said in a press release. “The addition of the team from TCX expands our already robust operations in Texas.”
All of TCX’s current employees, one hundred total, are expected to join the Wonderful Citrus team upon closure of the deal, according to the company. John Glenn, former Chief Operating Officer of Sun Orchard, Inc., will join the TCX management team as Vice President, with the rest of the current team remaining in place.
Wonderful Citrus is one of America’s largest fresh citrus integrated growers, as well as shipper and packer, while TCX is one of the largest citrus juice processors in Texas. Though the company did state that TCX will now be a new division of Wonderful Citrus under the name Rio Grande Juice Company, it did not list an estimate of when the deal would be closed.
AndNowUKnow will continue to keep you up to date on expansions and acquisitions across the industry.
CINCINNATI, OH - Kroger is advancing in the Tennessee region. Included in the retailer’s growth spurt are expansion and relocation plans, as well as big plans for a former Kmart store.
“This will be the ‘wow’ of the market,” Chris Miller, Assistant Real Estate Manager for Kroger’s Nashville Division said to planning commission members, according to The Tennessean.
The six-acre property that will house the 100,000 square-foot Kroger is valued at upwards of $7.2 million, according to the report, purchased by Nashville-based Maple Row Partners LLC in September of last year. The new store will incorporate Kroger’s Clicklist, a new concept that allows consumers to shop online for their groceries.
Melissa Eads, Community Relations Manager for Kroger, told The Tennessean that Clicklist will be up and running in a number of Kroger stores in the greater Nashville area by the time this new location opens next fall. Eads added that it will replace Kroger’s current store in the area, which is open less than a block away
A hop-skip away, Kroger has also submitted plans for a sizeable expansion project in the Brentwood, Tennessee-area, combining two stores to create an 89,012 square-foot Kroger superstore.
Soon to be born of an existing 58,315 square-foot Harris Teeter and an adjacent space, The Tennessean reports that this will be considerably larger than the retailer’s surrounding locations. The Nolensville, TN Kroger measures at 63,000 square feet while another Brentwood store is 58,890 square feet.
While the new 100,000 square foot store is due to open in the fall, the 89,012 square-foot is reportedly planned for a 2016 opening.
USA - With September dubbed National Mushroom Month, followed closely by the holidays, it's not too early for retailers to start thinking about those mushroom promotions. Summer demand for mushrooms has been higher than usual, according to reports, and the holiday season is expected to bring more demand signifying a tightening market up ahead.
“While Summer is usually our slow time, we are experiencing record sales as it is grilling season and more consumers are catching on to using mushrooms,” Mike O’Brien, Vice President of Sales & Marketing for Monterey Mushrooms, tells me, adding that now is a great time to promote the category.
As of August 4th, the USDA reported that the market is a steady one. Med-sized whites packaged in 10 pound cartons are priced at a steady $13.00 out of Pennsylvania when whole or sliced, while 5 pound cartons of med-large sized portobellos are at $8, as well as creminis. Shitake and oyster mushrooms are both currently at $9 for 6 carton 6 ounce film-wrapped trays.
Pete Wilder, Marketing Director for To-Jo Mushrooms, emphasized that any quiet period mushrooms might have experienced can end quickly when the holiday season hits.
“The peak time for mushroom sales is late fall through the Christmas Holidays,” Pete tells me. “Mushroom demand can increase by as much as 30% during that time frame, so although mushrooms are harvested 24/7, 365 days a year there are some challenges that need to be planned for around the holidays.”
Pete also shared that mushroom supply has been sufficient for To-Jo, allowing it to serve its current customer base without interruption, but some tightening of the belt could soon be seen in the industry. “Industry-wide supply is starting to tighten up a little as we finish out the summer grilling season and begin gearing up for the strong holiday season,” he said.
According to Mike, the mushroom category dollar sales growth has been driven mainly by Brown mushrooms, though the conversion from white button mushrooms to brown mushrooms continues.
“I like to think of the conversion from white mushrooms to brown mushrooms is like the wine drinker that moves from Chardonnay to red wines,” Mike tells me. “I still love a good Chardonnay but prefer a bold red wine.”
Overall the category has seen strong growth in recent months, with a 15 percent growth in organic mushrooms and foodservice up to and 85 percent high.
“In foodservice, overall menu penetration for mushrooms is at an all-time high, reaching close to 85 percent, and the Mushroom Council's promotion behind “The Blend” has really caught the attention of many operators and retailers, helping to lift the category,” Pete said.
With the diversity of the mushroom category inspiring meat blending, versatility, and stand-alone flavoring, it could be a busy holiday for mushroom growers and suppliers. Stay tuned to AndNowUKnow as we continue to bring you the most recent market news.
PACIFIC OCEAN - Billed as the largest storm yet in 2015, Typhoon Soudelor has been rapidly strengthening since Monday, officially reaching category 5 super typhoon status. Weather experts expect the typhoon to threaten China, Taiwan, and surrounding areas by the end of the week.
Soudelor became the fifth super typhoon this year Monday after undergoing a replacement of its eyewall, a process that occurs in intense tropical cyclones. According to the Weather Channel, a super typhoon is defined by sustained one-minute wind speeds of at least 150 mph.
AccuWeather has reported that Soudelor reached peak intensity late Monday with winds near 180 mph, making it the strongest tropical cyclone anywhere on the planet this year. Winds near 105 mph were reported as the typhoon passed over the island of Saipan, while Guam to the South was spared from most damaging winds, as gusts remained at 30-40 mph.
Conditions will worsen across northern and eastern Taiwan Friday afternoon with the worst of the weather expected Friday night and Saturday as the powerful typhoon makes landfall along the east coast of Taiwan.
As Soudelor takes its path across Taiwan, the typhoon is expected to weaken significantly before it makes landfall in China this weekend, but flooding, rainfall, and strong winds will still be a concern.
China is currently one of the largest producers of apples in the world, and as one apple producer here in the U.S. tells me, the crop is so large that there is significant production in all of the provinces within China. They are northern hemisphere, so their production season is essentially the same as the United States, give or take varying timelines.
Flooding could be a concern for growers in Fujian, Jiangxi, Anhui, and Jiangsu provinces this weekend into early next week. According to AccuWeather, rainfall will average 4-8 inches, with it reaching 12 inches in parts of the coastal plain.
SANTA MARIA, CA - Tozer Seeds America is offering its own selection of arugula, also known as wild rocket, with benefits for both growers and retailers as the fall season approaches.
“Tozer is at the forefront of developing and breeding new arugula varieties,” Kraig Kuykendall, Sales Manager of Tozer Seeds America, said in a press release. “We aim to develop a selection of new varieties with better flavor for retailers as well as an easier plant to grow for the growers.”
On the grower’s side, Tozer offers arugula varieties that the company says are easier to grow due to the plant being both slower bolting and more vigorous.
On the retailer’s side, these varieties have more interesting leaves and strong flavors to help push in-store sales.
According to Tozer, its arugula breeding program began in the late 1990s, but kicked off in 2004 with the introduction of one of the world’s first named varieties of arugula, Voyager. Since then, the company has released arugula varieties with improved agronomic, post-harvest, and consumer appeal characteristics.
The latest Tozer varieties come with extended shelf life, reduced bolting, improved vigor, and higher mildew tolerance.
NEW YORK, NY - Fairway Markets has announced its Q1 2016 financial results, and with sales falling by $4.5 million from Q1 2015, CEO Jack Murphy took to a conference call with investors to respond to some analyst’s hesitancies.
“If you focus on short-term results and you focus just on the short-term of this quarter, you obviously will have some questions which we will be happy to answer,” said Murphy in a call to investors. “But I am seeking and asking people to take a look now at the long-term opportunity of Fairway. We’ve talked a lot about the iconic brand that demonstrated the ability for us to run successful profitable stores in a very difficult, competitive market.”
In the company’s financial report, Fairway made it a point to highlight both its $2.8 million investments in advertising and promotional campaigns, as well as its future growth strategies.
“The Fairway team is also engaged in development and design activities for new Fairway locations, and we expect many of these elements will be reflected in our new store in the Mill Basin area of Brooklyn, which is scheduled to open in mid-2016,” Murphy said in the report. “The new store format improved gross margin and labor performance and the strategic actions to build our customer base are all important efforts in our long-term improvement plan for Fairway.”
For the future of Fairway, Murphy said the company is focusing on both monitoring and measuring to identify strategies to increase revenue.
“We’re not saying that we have all of the answers we’re not saying that we’re omniscient,” Murphy continued on the call. “What we are basically saying is that we are going to now start on some strategic initiatives that are going to help to build the top line.”
Other highlights from Fairway’s Q1 2016 Financial report include:
- Net sales of $193.8 million compared to $198.3 million in Q1 2015.
- Adjusted EBITDA of $9.1 million compared to $11.1 million in Q1 2015.
- Gross margin of 31.5%, up from 31.0% in 2015.
Stay tuned as we continue to report on financial news all across the industry.
IRVINE, CA - Urban Produce has announced the addition of two new products to its line of living greens, Organic Amaranth and Organic Arugula.
Developed in its research and development labs, the company’s unique microgreen blends have now graduated to full production in its patented High Density Vertical Growing System.
Urban Produce’s living organic Arugula microgreens are showcase a bold, peppery taste and petite crunch. Though small, these microgreens pack strong flavor, dense nutrition, and provide essential nutrients like calcium and vitamin C.
Boasting a vibrant pink color from head to root, organic living Amaranth microgreens can be used to bring a pop of pink to any dish, the company says. They are rich in vitamins A & C, amino acids, and many other essential dietary minerals with a subtle nutty flavor and slight peppery taste.
According to a press release, Urban Produce’s team of growers are working constantly to seed new blends of 100% organic microgreens. All of the company’s products are packaged with the roots attached in order to harness nutrients from the coconut coir. Because the microgreens are living, they can last up to three weeks in the refrigerator and even longer if watered, Urban Produce assures.
PHOENIX, AZ - While a strong El Niño might not break the drought in Arizona, patterns in the area indicate that it may help to fill the reservoirs in the future.
The Daily Courier reports that previous El Niños have consistently brought wet winters and higher water levels over the years.
As we previously reported, weather services and meteorologists are expecting a strong El Niño this winter, so much so that it is expected to go into the spring season of 2016.
"With the stronger El Niño, there is a stronger likelihood for wetter conditions," Ken Daniel, Meteorologist with the National Weather Service, said, according to the report.
The moderate El Niño of 2010 filled SRP reservoirs considerably, according to the Daily Courier, setting a hopeful precedent for this upcoming winter.
"What we would ideally like is a good soaking rain before we get our first snowfall," Nancy Selover, State Climatologist, said explaining that the best precipitation to battle drought conditions is snow. "So the soil gets wet, then we have our snowpack on top of that. If we keep the snowpack all winter, when it starts to melt, the soil underneath it is already wet, so we don't end up with that moisture all soaking into the soil. We could get some really good runoff."
The usual snowfall levels for the Prescott, AZ region averages around 13 inches between the November and April months, with overall precipitation usually coming in under 9 inches. Previous strong El Niño winters have kicked those numbers up to almost 20 inches of snow in the region and 13 inches of precipitation overall, the Courier reports.
When this took place during the 2009-2010 El Niño winter, it wasn’t without cost. The sudden large amounts of water brought floods and water damages to the region with its 5-20 inches of snowfall.
With a little luck and a fair amount of water, however, hopefully the region will be able to see a lift in the reservoir levels soon. Though the report does caution that it will take more than one strong El Niño to reverse the dry conditions, every bit helps.
AndNowUKnow will keep you up to date on weather conditions and any other influences happening within the produce industry.
MADISONVILLE, TX - David Nesselrode, General Manager of Monterey Mushrooms, recently took the time to show AndNowUKnow behind the scenes of the new, organic mushroom facility in Madisonville, Texas.
Taking its mushroom production to new heights, the facility now bumps up Monterey’s harvest to as much as 20 million pounds of organic white and brown mushrooms a year. The new facility also has focused its energy on recycling and sustainability, using a 21-day composting process that uses 100% synthetic wheat straw.
During this visit with AndNowUKnow, Nesselrode takes us through the company’s entire five-step growing process, from composting, pasteurization, spawning, casing, pinning, and finally to harvest.
To find out more about how Monterey Mushrooms grows its White Button, Baby Bella, Portabella, and Oyster Mushrooms, watch the two-minute exclusive at the top of the page.
YAKIMA, WA - FirstFruits Marketing, a grower-owned collaborative apple marketing company and purveyor of the unique Sweetie™, early Fuji, and Opal® apple varieties, is gearing up for a successful season.
“Ralph Broetje of Broetje Orchards is an innovator in the industry and has traveled the world to find the best apple varieties,” Keith Mathews, CEO of FirstFruits Marketing of Washington, said in a press release. “The demand for our unique varieties continues to grow year after year and we’re excited to be able to offer them again to our customers.”
Representative of Broetje Orchards, who the company states is at the forefront of bringing new high-demand varieties to market, FirstFruits recently expanded its unique offerings with the planting of the Cosmic Crisp. This apple is a newly-developed hybrid from Washington State University to add to the company’s list.
After a “stellar 2014 season of growth and consumer build in purchase,” FirstFruits anticipates a strong 2015 round for its Opal® apple variety, which will be available in the beginning of November. It is the exclusive marketer for the variety, offering them in both organic and conventional, while expecting supplies to last through March, 2016.
FirstFruits’ early Fuji apple will also be available in conventional and organic options, slated to arrive by mid-September, while the Sweetie™ variety (a Braeburn and Royal Gala hybrid called Gala’s sweeter, crunchier cousin) is expected in stores in early September.
These unique varieties will be supported with:
- Point-of-sale materials
- Merchandising bins
- Social media content
- Produce manager education
FreshFruits will also have a comprehensive consumer campaign for Opal, which is planned for the winter. Those interested in these exclusive apples can contact the company’s East Coast Regional Marketer Dennis Jackson or West Coast Regional Marketer Tim Corkill.