MINNEAPOLIS, MN - SuperValu today has announced its plans to explore the possibility of separating its Save-A-Lot business to allow for a possible spin-off of Save-A-Lot into a stand-alone, publicly traded company.
“Over the last two and a half years, Save-A-Lot has repositioned its brand, refocused its efforts on fresh produce and meat, and remerchandised its stores and product offerings to better appeal to a broader group of customers,” said President and CEO Sam Duncan. “Today’s announcement reflects our commitment to continuing to explore ways to maximize value for our shareholders.
Duncan also added that the company believes a separation of the Save-A-Lot business could allow the banner to better focus on its operations and pursue strategies specific to its business characteristics and growth potentials, for the benefit of our shareholders, customers, licensees and employees.
There has not been a time table released for the separation yet and no assurance that a separation will be completed, but according to a press release, SuperValu has already engaged Barclays and Greenhill to serve as financial advisors, and Wachtell, Lipton, Rosen and Katz as legal advisor, in connection with this possible separation.
In other SuperValu news, the company also released its Q1 2016 financial results reporting sales increases in all operating segments.
Other highlights from the Q1 report include:
- Net sales for Q1 2016 reached $5.41 billion
- Net earnings from continuing operations hit $63 million
- Q1 marked the seventh consecutive quarter of positive Save-A-Lot network ID sales
- Operating earnings of $158 million, $23 million higher than last year's first quarter
- Adjusted EBITDA of $246 million for Q1 fiscal 2016
Keep watching AndNowUKnow for continued updates on this developing story.
MONTEREY, CA - More than 1,700 fresh produce and foodservice professionals connected at the PMA Foodservice Expo this year, beginning with the nearly 450 attendees who visited the Annual Opening Reception. Watch the highlight reel from this record-breaking event, hosted by PMA Public Relations Manager Ashley Boucher.
Key executives for PMA took the time to share some advice, information, and their favorite aspects of PMA Foodservice 2015.
“It’s a must-attend for us because the industry is here - all of the growers, all of the shippers, all of the customers that we do business with, competitive distributors that we compete against, but we’re all here as one family in the produce industry,” PMA Co-Chair Jeff DeBoer, Senior Director of Produce Sourcing for Sysco Corp.
As we previously reported, there were a number of events and highlights to the weekend, including a 5K run, the Women’s Fresh Perspectives Conference, and the Joe Nucci Memorial Golf Tournament.
“For me, the highlight's been the level of engagement, the energy that I’ve really felt throughout the weekend, and then of course the record numbers we had in a variety of different areas,” PMA CEO Bryan Silbermann stated.
While PMA President Cathy Burns agreed wholly on the communal and family-like feel of the show atmosphere, her favorite was the educational session that took place on Saturday.
“The content was so rich,” she said. “The amount of innovation that is coming from the chefs to technology, to research and development, incredibly inspiring. We need more people to hear more of those messages.”
Among the education presentations given, Celebrity Chef and Restaurateur Jet Tila appeared with must-see names to talk about trend forecasting. Tila took the time to discuss the veg-centric movement, but not in the usual way of saying that veggies need to take the center of the plate.
“We’re actually here to show people how to do it,” he said, lending his expertise to attendees on ways to bring produce to the spotlight.
And of course there were the awards. Watch below as Silbermann announces the winner of the PMA Luncheon, followed by Burns’ announcement of the Product Showcase winners.
Next year will be a bit of a change up. Due to remodeling at the usual venue, next PMA Foodservice 2016 will be held at the Hyatt Regency in Monterey, California. According to Silbermann, this will be a great opportunity to try some new things while still maintaining the same energy. See you there on the weekend of July 29th-31st, 2016!
PULLACH, GERMANY - The team caught up with IFCO’s North America President Daniel Walsh, who told us some of the focuses the company has this year.
“We’re focusing on three themes this year: ‘respect’, which is related to the positive impact that RPCs can have on the environment; ‘protect,’ which is about the quality of products that are transported in RPCs; and ‘change,’ which is how RPCs work in conjunction with the merging supply chain trends,” Daniel tells us.
He also explained that RPCs are rapidly becoming more and more popular in the U.S., Europe, and other parts of the world for transporting fresh produce.
To hear more about RPC’s, IFCO as a partner, and more, you can watch our entire interview with Daniel in the 59 second video at the top of the page.
YUMA, AZ - Sandstone Melon Company is a consumer, flavor-driven company. Just ask Milas Russell III, Sandstone’s Vice President of Sales and Marketing.
“Everything we do is done with the consumer experience in mind,” said Russell III. “From proprietary seeds to our progressive growing practices, which are handled by my father Milas Russell Jr., to our unique quality control and harvesting protocols managed by my mother, Diana Russell. Our family is focused on giving each consumer a great flavor-driven experience each time they purchase a Kiss Melon.”
Sandstone’s proprietary seeds are selected from the thousands of seed trials the company runs each season. Each seed must perform consistently in a growing area to be considered for the Kiss Melon program.
Retailers, such as New Season Markets and Reasor’s, have raved about Sandstone’s Kiss Melons, noting that their consistent flavor profile and unique textures bring them and their consumers back each season.
“We have been on a Kiss Melon program for five seasons. The Kiss Melon program has been a booming success because of the consistency and eating quality of the melons,” Jeff Fairchild, New Season Markets’ Director of Produce, explained. “Customers come back looking for the label and buy all season long.”
Jamin O’Connell, Director of Produce for Reasor’s, remarked, “Reasor’s produce has a reputation for quality and taste with our customers. Sandstone Kiss Melons are the embodiment of those qualities. When we discovered Kiss Melons a few years ago and brought it to our customers, they were blown away with the intense sweetness of the melons. Our customers now ask for them by name. We proudly carry Sandstone Kiss Melons at Reasor’s, where it’s all about taste for our customers!”
Sandstone continually reaches out to consumers via social media, enhancing its Kiss Melon program with their input and their retail partners’ support and guidance.
“We are very active on social media, continually reaching out to consumers,” said Russell III. “I personally answer every email, post, or tweet.”
The company has recently come up on its production out of the San Joaquin Valley and volumes and condition look to be the best it’s had in years.
CITY OF COMMERCE, CA - Jack L. Sinclair, former Executive Vice President of Wal-Mart’s U.S. Grocery Division, has been announced as the 99 Cents Only Stores LLC’s new Chief Merchandising Officer.
"Jack's significant experience in retail merchandising will be an asset to 99 Cents Only Stores as we continue to improve the execution of our core business plan that emphasizes a strong mix of seasonal, grocery, and close-out products," Andrew Giancamilli, Interim Chief Executive Officer of 99 Cents Only Stores, said in a press release. "His deep knowledge of the grocery and fresh food category will be particularly valuable, given the importance of these categories to our customers and for driving traffic in our stores."
Aside from serving over seven years leading the team responsible for Wal-Mart's grocery business, which 99 Cents Only noted generated substantial growth through a focus on local assortment and fresh foods, he spent 14 years working with the U.K.-based Safeway PLC supermarkets. Eventually, Sinclair became Group Marketing and Trading Director, running all store operations and merchandising for the third-largest grocer in the U.K. In total, Sinclair brings more than 30 years of grocery retail experience with both the North American and European retail markets to his new role.
Sinclair’s position as Chief Merchandising Officer for 99 Cents Only became effective yesterday, in which he will be responsible for the chain’s merchandising and marketing functions.
AndNowUKnow congratulates him on this newest chapter of his industry career!
SEATTLE, WA - With just about anything you could every want available for online order, going to the grocery stores is one of the few things left that consumers still get out of the house for—and Amazon has noticed. The e-commerce company that has perpetuated shopping in your pajamas is looking to bring us a drive-thru grocery format that would allow you to shop online and pick up your groceries like you would your Taco Bell or Starbucks.
Amazon does have its AmazonFresh program, which allows you to have your groceries delivered right to your door, but it’s not always available. And to be honest, a lot of consumers report being a little uneasy about ordering fresh products online. But going to physically pick up your groceries (while staying in the car of course) and having someone else fill your basket? Amazon seems to think this is the link that has been missing between online ordering and grocery shopping.
“We are seeing the emergence of the next generation of the food distribution system,” Bill Bishop, Chief Architect at retail and e-commerce consultancy Brick Meets Click, told the Silicon Valley Business Journal.
According to the report, the first format looks to be in a new 11,600-square-foot building and grocery pick-up area in the Sunnyvale area. Though the company is not named in the filed documents submitted by a real estate developer, but sources “familiar with Amazon’s concept” told the Business Journal that it is likely to be the first location.
Will it work? Kirthi Kalyanam, Director of the Retail Management Institute at Santa Clara University's Leavey School of Business, said that a new format is needed for online grocery shopping to catch on, and order-ahead pick-up could give consumers the control they need when it comes to grocery shopping.
“I don’t think there’s one modality for grocery shopping,” Kalyanam told the Business Journal. “Some customers are going to order online and are happy to have it delivered to the house. Some want to order online and pick it up on the way home. Even the same consumer has different shopping-delivery needs on different occasions. One thing we know is—the more options a company gives consumers from a retail shopping point of view, the better the chance of success.”
While it’s not a sure bet, it is an interesting idea on how to bring grocery shopping into the internet fold. And if it does succeed, what will this mean for grocery shopping as we know it? If it catches on enough that consumers see it as more beneficial than to visit a traditional format, Kalyanam said that demand will restructure, as will the industry.
Keep checking in with AndNowUKnow for all the latest in the retail and produce industries.
DALLAS, TX - Avocados from Mexico (AFM) has announced its new fall season promotions, this time for both the general and Hispanic markets. In addition to working with partners like Coca-Cola® and RO*TEL®, AFM will be focusing on Fiestas Patrias celebrations and the tradition of tailgating with guacamole-focused campaigns designed to drive consumption of Mexican avocados.
“Whether it’s a touchdown or a special holiday, our Fall campaigns focus on the foods we love to share when we’re celebrating with family and friends,” said Alvaro Luque, Avocados from Mexico President. “Big-name partnerships, creative displays, consumer incentives and retail contests, as well as event and ad support will help increase sales of the always in season Avocados From Mexico during this crucial period.”
AFM’s Fall programs include:
Fiestas Patrias Guacamoments
Coinciding with Fiestas Patrias and Hispanic Heritage Month, AFM and Coca-Cola® will provide Hispanic shoppers meal solutions at a great value to make the holiday celebration special with family and friends. According to AFM, this program is aimed at the Nueva Latina and making authentic and fun guacamoments. The promotion will run from August 30 through September 26 and will include both consumer savings and a variety of Spanish and English lead bilingual POS materials.
Tastiest Tailgate
Next, from September 15 through October 31, AFM and national partner RO*TEL® will get consumers excited about football season with the Tastiest Tailgate promotion. Centered around the quick and delicious Rockin’ Guac recipe prepared with Avocados From Mexico and RO*TEL® Original Diced Tomatoes & Green Chilies this promotion utilizes the trendy “Speed Scratch” method. The success of this campaign last year proves that consumers can’t get enough of the convenience, freshness and homemade quality of Rockin’ Guac.
This campaign also provides the opportunity for retailers to win big prizes for creativity in the Tastiest Tailgate display contest. The Tastiest Tailgate chosen will be featured on an electronic billboard in Times Square, New York City and will go on the road with the Tailgate Tour visiting six college football tailgate events.
To learn more about these and other marketing and promotional activities, visit the Avocados from Mexico Facebook page or AvocadosFromMexico.com.
SACRAMENTO, CA - Jon Holder, Senior Manager of Produce and Floral for Raley's, has retired from the Sacramento, California-based family of stores.
Jon credits the difficulty in making this decision to the friendliness, passion and good nature of so many in the produce and floral business. Luckily, Jon will remain in the industry, and has chosen to enter into the Grocery Outlet owner operator program with his wife Yvonne.
Greg Corrigan, Sr. Director Produce and Floral, spoke to me about Jon’s time at Raley’s.
“Jon has been a tremendous asset to our team at Raley's. His absence will be missed on a professional and personal level. We wish him and his family nothing but the best in the next chapter of their lives.”
Jon and his wife Yvonne will train for four to six months in Atascadero, California and after successfully completing their training will be eligible to apply for locations.
“Combined, Yvonne and I have over 60 years of experience in most aspects of the business and with my background in perishables we feel confident that our store will be successful,” Jon tells me. “I have enjoyed my 31 years at Raley’s and will miss the team members that I had the privilege to work with as well as the relationships with so many of the great people in the produce Industry.”
Jon held his position as Senior Manager of Produce and Floral for Raley's for the past nine years and thanks his customers and colleagues for their support and friendship during his time with the company.
Congrats, Jon, on 31 successful years with Raley’s and good luck on the venture to come!
GLENMONT, NY - New York Apple Sales, shipper of one-third of New York’s annual apple crop, has a lot to be excited about.
The agency owns its own orchards, like Fish Creek, which plants up to 2,000 of its apple trees per acre, which is double the density of comparable orchards, New York Apple Sales says.
As a partner in two advanced, high-tech packing and shipping facilities, New York Apple Sales utilizes technology such as its internal defect sorter to see inside its apples and detect browning and more in real time. The agency also maintains what its calls an ultra-modern storage room that keeps its apples at the peak of freshness for retailers and wholesalers.
In addition to the KORU, Honeycrisp, and Fuji varieties the agency grows at Fish Creek, New York Apple Sales also imports KORU, Honeycrisp, and Gala from New Zealand and Chile. Even exporting its apples to Asia, Central America, Israel, the UK and more, the agency has its hand in all kinds of aspects of the industry.
To find out more about the dynamic apple agency and how it sets itself apart from the rest, watch the three-minute video above.
WASHINGTON, D.C. - The USDA has barred three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to a USDA press release, the following businesses and individuals are currently restricted from operating in the produce industry:
- Unique Produce Corp, a Riverside, California-based company, has allegedly failed to pay a $26,180 award in favor of a California seller. As of the issuance date of the reparation order, Jose (Joe) L. Cardenas and Gerard A. Corros were listed as the Officers, Directors, and/or major stockholders of the business.
- Michael J. Navilio and Son Inc., a Chicago, Illinois-based company, was named for failing to pay an $11,401 award in favor of a Minnesota seller. As of the issuance date of the reparation order, 5420 Cermak Rd. II LLC, James Navilio and Patricia K. Navilio were listed as the Officers, Directors, and/or major stockholders of the business.
- Top Choice Produce Inc., a Bronx, New York-based company, has purportedly failed to pay a $102,938 award in favor of a North Carolina seller. As of the issuance date of the reparation order, Robert H. Guiliano was listed as the Officer, Director, and major stockholder of the business.
The USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it, as well as impose restrictions against those Principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, Partners, members, Managers, Officers, Directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.
In the past three years, the USDA resolved approximately 4,250 PACA claims involving more than $77 million. USDA experts have also assisted more than 7,000 callers with issues valued at approximately $110 million. Individuals, including sole proprietors, Partners, members, Managers, Officers, Directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service, PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.