MONTVALE, NEW JERSEY - Great Atlantic & Pacific Tea Co. (A&P) could file for its second bankruptcy in two years as soon as next month.
“[A&P is] open for business as usual and will remain so throughout the strategic review process,” Hugh Burns, Spokesman for Montvale, New Jersey-based A&P at Sard Verbinnen & Co, told Bloomberg in an email. “The company is committed to continuing to serve its customers and communities as it always has and intends to keep its stores fully staffed.”
People close to the situation said in the report that a filing for bankruptcy could happen next month as one of the current financial options for what was once the nation’s largest grocer. The sources told Bloomberg they would like to remain anonymous, as the company’s current discussions on the matter are not yet public.
“No decision has been made regarding a particular outcome, and it would be inaccurate and irresponsible to suggest otherwise,” Burns stated in his email.
As we previously reported, the company had recently announced it was auctioning nearly half the chain, and had not received a viable offer for the entire chain when that was put up for sale in 2013.
The company’s financial hardships reportedly continue, with two loans totaling $270 million and a $300 million revolving line of credit that matures in September of 2019, according to data compiled by Bloomberg.
Considering that data also included court documents listing that A&P acquired a $420 million junior-ranking debt upon exiting its first bankruptcy, it is understandable that the company would treat the decision with care before filing for a second time.
YERINGTON, NV - Grilling season is here, and Peri & Sons is ramping up consumer excitement for onions with its new Bloomin’ BBQ Onion retail promotion.
The new promotion encourages consumers to get creative with their onions this summer with an artistic, yet flavorful and healthy recipe.
“The Bloomin’ BBQ Onion contains only a fraction of the calories and fat that some other recipes have,” Teri Gibson, Director of Marketing & Customer Relations, tells me. “It’s a perfect dish for summer grilling and can be made in just a few easy steps.”
Only four steps are required. Simply cut the onion, spice and wrap, and grill it for a quick summer BBQ or pot-luck. Peri & Sons touts the recipe as a healthy low-fat alternative to the deep-fried onion.
A QR code on POS material and product tag takes consumers to a webpage where they can learn how to make the Bloomin’ BBQ Onion and a fresh herb blend, or enter to win a portable BBQ grill with matching carrying case. The webpage also offers tasty dipping sauce recipe ideas, including Spicy Sour Cream Dip, Cheddar Ale Dip, and more.
For the latest on all your produce promotions and news, stay tuned to AndNowUKnow.
ORLANDO, FL - Darden Resturaunts has announced that it will set aside a significant part of its real estate to create a separate, real estate-only business. The new real estate investment trust, or REIT, will be independent and publicly traded.
Darden, which owns restaurants such as Olive Garden and LongHorn Steakhouse, has said it will spin off about 430 of its more than 1,500 restaurants into the REIT. Most of the restaurants will be leased back to Darden, the company expects, and will be completed by the end of the year. The new deal is expected to give the company the opportunity to acquire more real estate, Darden revealed in a statement.
"This strategic real estate plan is the result of a comprehensive review of alternatives to best take advantage of our real estate portfolio," said CEO Gene Lee. "While a significant amount of work remains in order to proceed with the REIT Transaction, we believe this plan will result in a more optimized capital structure and will create long-term shareholder value. We appreciate the valuation differential between restaurant and real estate companies and are excited to create a new company, which we believe will unlock current value while growing through acquisitions of other properties.”
Darden has also listed about 75 properties for individual sale leasebacks. Proceeds from the real estate sales are expected to let Darden retire nearly $1 billion in debt.
“We anticipate a net book gain of approximately $50 million on the total 75 properties, with a $65 million gain being recognized over the next 15 years, and a loss of approximately $50 million that we recorded in the fourth quarter of fiscal 2015,” Lee added.
This announcement comes on the heels of the announcement of Darden's fourth-quarter earnings.
Highlights from Darden’s Q4 financial report include:
- Earnings of $105.3 million, or 82 cents a share
- Adjusted earnings per share were $1.08
- Sales jumped 13.8% to $1.88 billion
- Positive same-store sales jumps at all of the company's brands
- Olive Garden, Darden's largest chain, same-store sales increased 3.4%
As of 11:25 AM Pacific Time, Darden’s stock was up 1.86 to 71.35, a 2.86% increase.
Stay tuned as AndNowUKnow continues to update you on the new restructured companies.
GLENDALE, WI - Meet the award winning new packaging that has the industry talking! Maglio Companies has released its readyripe watermelon packaging this year to much success, having earned an endorsement from the National Watermelon Association and a “Best New Packaging” award at this year’s United Fresh.
“We’re very excited to have been honored with the United Fresh Innovation Award for Best New Packaging, as this gives us the opportunity to increase exposure of Maglio Companies products through innovative design,” said Joe Delgadillo, Product Innovation Manager at Maglio Companies. “We hope to continue to drive innovation in the category of fresh produce by providing new ways for consumers to enjoy fresh fruits and vegetables with a longer shelf life.”
Maglio’s program includes two gusset bag designs custom sized for ¼ cut and ½ cut sliced watermelon. They feature a large window area to allow consumers easy viewing of the quality of the fruit before purchasing. According to a press release, the patented design, which is exclusively used by Maglio Companies, keeps the fruit fresh for an extended period of time—up to 11 days from the date of production - as compared to conventional plastic overwrap methods.
Along with the extended shelf-life, this packaging benefits consumers with a carry handle, a compact, resealable storage bag to use at home and the ability to purchase only the desired amount of watermelon. The benefits to retailers include the elimination of wet and unsanitary displays, lower labor rates and lower shrink rates with each piece being 100% saleable upon arrival.
WENATCHEE, WA - Kyle’s Pick™, Stemilt’s signature program for premium cherries, is making its return with a host of large sized fruit presenting dessert flavors for retailers this season.
Built around flavor and a dessert eating experience, Kyle’s Pick™ offers premium cherry varieties like Skeena, Stemilt Hill Bings, Sweetheart, and Staccato®, and its largest sized fruit with high firmness, in specially marked Kyle’s Pick™ pouch bags.
Roger Pepperl, Marketing Director at Stemilt, briefly discussed what Skeena cherries can bring to the retail aisles.
“Stemilt is the leading producer of Skeena cherries in Washington State and we are strategically planting more,” said Pepperl. “This firm, deep red, large-sized and high-flavored cherry is the best variety available during this timeframe, and one that will deliver a great eating experience, and with it, sales in the cherry category.”
Pepperl went on to say that the Northwest cherry crop has been in a “demand exceeds supply situation throughout June” and that the industry anticipates a smaller crop of about 16 million boxes (20# equivalent), according to a press release.
“Merchandising is key during the cherry peak and promoting quality is the best way to differentiate your cherry program and help consumers make the impulse purchase decision that cherries are. This is what Kyle’s Pick is all about,” said Pepperl.
Using state-of-the-art electronic packing lines with high-definition camera imaging and computer software, Stemilt digitally sizes and sorts cherries based on set firmness, size, and sugar level standards.
Stemilt will pack Kyle’s Pick cherries until late July when it transitions to its high-elevation cherry package, called A Half Mile Closer to the Moon™ cherries.
“Retailers who promote size and dessert flavors will experience the best results during this unique Northwest cherry season, which is both early and in high demand,” Pepperl explained. “Stemilt’s signature late-season cherry programs, Kyle’s Pick and Half Mile Closer to the Moon, deliver premium quality fruit and the stories to drive impulse and repeat sales.”
This is the third season Kyle’s Pick cherries have been available. Built around quality-first fruit, the program is named after Stemilt Co-Owner and fourth generation cherry grower Kyle Mathison.
EUROPE - Just six weeks after whispers began circulating through the industry of merger talks restarting between The Delhaize group and Ahold, the contract has been drawn and the dotted line reportedly signed on a $28 billion merger.
Ahold Delhaize is now a worldwide retail group.
"This is a true merger of equals, combining two highly complementary businesses to create a world-leading food retailer,” Jan Hommen, Chairman of Ahold, and Mats Jansson, Chairman of Delhaize, said together in a press release. “The transaction delivers a compelling value proposition for our shareholders, a superior offering for our customers and attractive opportunities for our associates."
As we previously reported, the two retailers together have more than 6,500 stores, nearly 2,300 of which are in 14 states and the District of Columbia, according to both company websites.
"The proposed merger with Delhaize is an exciting opportunity to create an even stronger and more innovative retail leader for our customers, associates and shareholders worldwide,” Dick Boer, CEO of Ahold, said in the release. “With extraordinary reach, diverse products and formats, and great people, we are bringing together two world-class organizations to deliver even more for the communities we serve. Our companies share common values, proud histories rooted in family entrepreneurship, and businesses that complement each other well. We look forward to working together to reach new levels of service and success."
Will this be the year’s largest retail merger? As we previously reported, 2014 was a "year of consolidation" with the recently merged Albertson’s/Safeway chain having turned a number of heads when it was made final in January, reporting final numbers at 2,230 stores, 27 distribution facilities and 19 manufacturing plants across 34 states and the District of Columbia.
Ahold Delhaize will account for almost 5 percent of the fragmented U.S. grocery market, according to market data firm Euromonitor, behind Wal-Mart, Kroger Co. and Albertson's/Safeway, a Reuters report stated.
The highlighted financial facts of the merger include:
- Run-rate synergies of €500 million (about $559.5 million) per year anticipated in the third year after completion.
- Aggregated net sales of €54.1 billion (about $60.5 billion), adjusted EBITDA of €3.5 billion (about $3.9 billion), net income from continued operations of €1.0 billion (about $559.5 billion) and free cash flow of €1.8 billion (about $2 billion) in 2014.
- €1 billion (about $1.1 billion) returned to Ahold shareholders by capital return and a reverse stock split prior to completion of the transaction due to ending its ongoing share buyback program.
- Ahold shareholders owning c. 61% of the combined company's equity.
- Delhaize shareholders owning c. 39% of the combined company's equity.
According to the release, the new key executive positions for Ahold Delhaize will include:
- Mats Jansson, Chairman of Delhaize Group, as Chairman.
- Jan Hommen, Chairman of Royal Ahold, and Jacques de Vaucleroy, Delhaize Group Director, as Vice Chairmen.
- Dick Boer, Chief Executive Officer of Royal Ahold, as Chief Executive Officer.
- Frans Muller, Chief Executive Officer of Delhaize Group, as Deputy Chief Executive Officer and Chief Integration Officer.
With six banners in the U.S. including Food Lion, Hannaford, Giant, Martin’s, Stop & Shop, and Ahold’s online grocery and delivery Peapod, concentrating mostly on the East Coast, it will be interesting to see what effect this has on the U.S. grocery chain.
WASHINGTON, D.C. - The USDA has imposed sanctions on two produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).
According to the USDA, the following businesses and individuals are currently restricted from operating in the produce industry:
- Lansal Inc., doing business as Hot Mama’s Foods of Springfield, MA, for failing to pay a $156,751 award in favor of an Oregon seller. As of the issuance date of the reparation order, Matthew D. Morse was listed as the Officer, Director, and major stockholder of the business. Another principal of the business at the time of the order was Joseph D. Ward. He has challenged his responsibly connected status.
- San Jose Trading LLC of Nashville, TN, for failing to pay a $13,500 award in favor of a California seller. As of the issuance date of the reparation order, Enrique Lozano Dominguez was listed as a member of the business.
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, 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.
MEXICO and PERU - With just a over a week left between us and the Fourth of July holiday, growers are reporting that asparagus volume is up and movement is doing well for the category.
“We’re up year-over-year on volume. We have very good supplies of product,” said John Shaw, Asparagus Manager for Ocean Mist Farms. “We’re hitting our peak going into this week and the market’s been building up for a few weeks at this point.”
As of June 22, pricing out of Mexico has ranged from $16.75 to $18.75, with moderate demand. Growers report that despite the few hurricane scares in Baja California, quality hasn’t been affected at all.
“The tips are nice and tight, beautiful green color, and very good sizing,” Shaw continued.
Similarly, out of Peru, growers are reporting that they have received 5 percent more volume than last year so far as a result of opening some fields ahead of time.
“Recent warmer weather in Peru has affected the yields, but because there is not much product going to IQF freezers, the overall volume for fresh has not been affected,” said Carlos Solf, Director of Procurement for Southern Specialties. “Volume will come mainly from Peru and Central Mexico. By the end of the month we should start to see more demand and more ads.”
As of June 23, 2015, the USDA reported prices of 11 lb cartons bunched asparagus imported from Peru at South Florida ports at $24.00 - $28.00 for jumbo sizes, $18.00 - $21.00 for extra large sizes, $17.00 - $20.00 for large sizes, $16.00 - $19.00 for standard sizes, and $10.00 - $14.00 for small sizes.
“Since the percentage of small grass has increased coming from Peru, customers should take advantage of promotion opportunities for those sizes,” Solf recommended. “Southern Specialties can provide value-added presentations that utilize smaller sizes also. The Fourth of July is a great time to promote grilling asparagus. They are a great addition for summer cook outs.”
Time to fire up those grills. For the latest on the asparagus market, stay tuned to AndNowUKnow.
WENATCHEE, WA - With the Northwest cherry season underway, Stemilt Growers is nearing the peak of harvest with delicious fruit and continued innovation in the supply chain. It’s been warm in Washington State, and one of the ways that the company consistently maintains cherry quality is by focusing on maintaining a very tight cold chain from field to final destination.
Check out the video above for an in-depth exclusive look at Stemilt's new technology.
“It’s critical that we reduce the temperature of cherries as soon after harvest as possible, and investing in on-farm hydrocooling has allowed us to do that. We get a head start on the cold chain process and deliver cherries to our packing facilities at a temperature that helps maximize fruit freshness, firmness, and flavors,” said Stemilt Marketing Director Roger Pepperl.
This starts at the farm with mobile hydro cooling. During this process, the goal is to hydrocool cherries at the farm and within an hour after harvest. Hydrocooling brings down the pulp temperature of cherries by drenching the fruit in cold water for several minutes. For Stemilt, hydrocooling starts the critical cold chain process for cherries.
From here, Stemilt cherries are transported to nearby packing facilities where they are packed on lines equipped with in-line hydrocooling. Once in their final pack and on a pallet, Stemilt’s cherries go through a final cool down process before they are shipped on refrigerated trucks. Stemilt is doing this in a new way this season with recent investments in engineered fans and proprietary tunneling processes. The Engineered fans are designed to cool cherries more efficiently and consistently throughout each individual box and pallet as a whole.
“We’re constantly working to develop and tweak what we call our ‘recipe’ for cooling cherries in order to consistently deliver fresh, firm, and high-quality cherries to consumers worldwide. The introduction of jet cooler—which are specifically engineered for forced air cooling of produce—is helping us in our goal to deliver an even fresher product by considerably bringing down the time it takes us to cool cherries prior to shipping,” said Pepperl. “Freshness goes hand-in-hand with the cold chain and is the primary factor in our ability to provide consumers with a great eating experience, and keep them coming back to the store for more cherries.”
Knowing that for every hour a cherry spends over 40 degrees equates to a day of shelf life lost at retail, the cold chain process is top priority at Stemilt every day. From field to final destination, the company’s efforts in maintaining the tightest cold chain for cherries in the industry is all about putting shelf life back in the retailer’s pocket in order to consistently deliver a dessert eating experience to consumers.
SAN JOSE, CA & CENTENNIAL, CO - The Mushroom Council is teaming up with the Beef Checkoff to highlight and promote its “star of the summer”- the Muenster Stuffed Veal Mushroom Burger.
“We are excited to be working with the Beef Checkoff on the veal summer grilling promotion,” Bart Minor, President of the Mushroom Council, said in a press release. “By working together, we can help consumers understand the appeal and nutrition offered by The Blend and veal. It is a unique opportunity to promote two perimeter departments—meat and produce— with one promotion.”
According to both companies, this is a new summer retail partnership whose purpose is to raise consumer awareness (and hunger) for mushroom blends, especially when it comes to the grill.
Incorporating the Mushroom Council’s Blend model by mixing finely diced mushrooms into ground veal patties, the Muenster Stuffed Veal Mushroom Burger was developed by the Culinary Institute of America (CIA) and is meant to be grilled and topped with sautéed mushrooms for an extra serving of vegetables, vitamins and nutrients. To see the burger in action, check out the video below.
As the video stated, the promotion will include a $500 grocery sweepstakes, which consumers will find the details about with the new burger recipe on specially marked package labels. The companies also stated that a digital and social media advertising campaign will drive promotion awareness and provide contest entry at VealMadeEasy.com.
The promotion began on June 19th and will run through September 6th, with 19 retail chains that represent over 2,000 stores across the nation are already participating to date.