CINCINNATI, OH - Kroger has announced its Q1 2015 financial report this morning, beating Wall Street analysts' expectations by hitting $619 million in profits, a 23.6 percent increase over last year.
This also marks the 46th consecutive quarter of positive identical supermarket sales growth.
"Kroger continues to deliver strong sales and earnings results. We are pleased with our start for the year, with identical supermarket sales growth in every department and supermarket division,” said Chairman and CEO Rodney McMullen. "Kroger has produced consistently remarkable results for so long that it might be easy for some to take a quarter like this for granted -- so it is important to emphasize it is the efforts of our incredible team of associates, connecting with customers, that is driving our success. Time and again, we have shown that by taking care of our customers, Kroger is creating sustainable value for our shareholders.”
Total sales from Kroger also jumped a bit, hitting $33.1 billion in the first quarter. Kroger says its strong financial position has allowed the company to return more than $1.1 billion to shareholders through share buybacks and dividends over the last four quarters.
Other highlights from Kroger’s Q1 report include:
- Total sales for Q1 2015, excluding fuel, increased 6.4% over Q1 2014.
- Kroger raised identical supermarket sales growth guidance, excluding fuel, to a range of 3.5% to 4.5% for FY 2015.
- Kroger recorded a $28 million LIFO charge during the first quarter, consistent with Q1 2014.
- FIFO gross margin was 22.1% of sales for Q1 2015.
As of 1:38 PM Eastern Time, Kroger's stock was up 0.48 to 73.39, a 0.66% increase.
Keep watching AndNowUKnow for all the latest industry financial news.
DELTA, BC - SunSelect Produce has announced an expansion of its Tehachapi high-tech greenhouse that is expected to double the capacity of SunSelect’s original 32-acre facility, as well as increase volumes of sweet bell peppers and tomatoes.
“The concrete is poured, the full structure is up, and glazing is well underway,” said Len Krahn, SunSelect’s Vice President, Operations and Sales. “Everything is on schedule and we expect the construction to be completed in early August, when we’ll do our first planting in the new area.”
Opened in October of 2014, just one year later this expanded facility will now focus on growing all three colors of bell peppers, as well as diversifying SunSelect’s specialty tomato line-up. This lineup includes tomatoes-on-the-vine, cocktail tomatoes, and red bell peppers for the first phase of the greenhouse.
The new facility is providing changes to the existing lines that now allow for more types of value-added pepper and tomato packaging.
Mike Reed, Executive Vice President and Chief Business Development Officer for SunSelect, said, “We’re adding new ProSeal machines, and a grape tomato line which will enable us to offer more Euro-style packs with top film for all of our specialty tomatoes. Not only do the packs have terrific shelf and consumer appeal, they also reduce the amount of waste going into landfills by about 25 percent.”
In a press release, Reed added that SunSelect has already created a strong foothold with local retailers seeking high quality local tomato and pepper programs year round.
“The expanded facility will enable us to grow from here,” Reed continued. “Our location in California’s Central Valley gives us ready access to key markets. In some cases, we can get the product off the plant and onto the store shelf within 48 hours, making SunSelect tomatoes and peppers authentic and appealing ‘Buy California’ promotions.”
Once the expansion is complete, SunSelect says that it will be the only high-tech greenhouse pepper producer in California, and the largest in the U.S., growing on over 24 acres under glass, Reed said.
“The timing of the new Tehachapi production couldn’t be better,” said Aaron Quon, Executive Category Director, Greenhouse, for The Oppenheimer Group. “The BC greenhouse pepper season will wind down, just as SunSelect’s new production comes on line,” he said. “The new supply will create even more opportunities for us to serve customers in California and beyond.”
Oppy is SunSelect’s exclusive marketing partner and co-investor in the greenhouse. The marketer is currently offering red, yellow and orange sweet bell peppers and Long English cucumbers grown in BC, as well as red peppers, tomatoes-on-the-vine and cocktail tomatoes produced in California.
SAN ANTONIO, TX – After more than one million YouTube views and over 14 million page views on a blogger outreach, it is safe to say that SenaReider’s six-video animated web series is an internet success.
“SenaReider’s goal in this marketing campaign was to develop a digital campaign that educates the public about how Florida tomatoes are grown and what makes them so nutritious, delicious, and different from the rest,” Heather Ruiz, SenaReider’s CEO and Creative Director, said, according to a press release. “We are committed to serving clients in the promotion of healthy nutrition and lifestyles while leveraging top notch digital media expertise, which is exactly what we’re doing to get Florida Tomato Committee’s story out to the public.”
According to the release, the video series tells the story of Florida tomato growers and their commitment to growing the quality tomatoes. Comprised of six consumer-focused videos on behalf of its client, the experience uses fun animated characters to showcase the Florida Tomato Committee’s commitment to sustainable farming practices such as drip irrigation and hand picking under the Florida sun.
Check out one of the videos below:
The campaign has been headed up by Samantha Daves, Director of Education for the Florida Tomato Committee, with an agency team that included Lou Sena, Founder of SenaReider, and Christian Lepley, Creative Strategist for SenaReider being headed up by Heather Ruiz, CEO and Creative Director for SenaReider. Liz Gonzales, Media Director for SenaReider’s parent agency, Interlex Communications, was also greatly involved, according to the company.
The series is supported by:
- The Florida Tomato Committee website
- Paid digital media
- Social media engagements
- Blogger outreach
The rest of the videos can still be viewed through the Florida Tomato Committee social media channels, the YouTube channel, or on the specialty blog site.
CALIFORNIA - In recent weeks, celery prices have been on the lower end of the spectrum with the amount of supply currently in the market. Now, growers anticipate seeing a stronger market within the next week or two as the Oxnard deal finishes up and transitions to Salinas, CA.
“We are in a transition period right now, moving from Oxnard to Salinas,” said Rick Alcocer, Senior VP of Fresh Sales for Duda Farm Fresh Foods. “There is more celery supply right now than there is existing demand. No doubt that since the beginning of last week through all of this week, you’re still dealing with lingering supplies. When that cleans up, you’ll see a strengthening market.”
As of June 17, 2015, the USDA reported celery prices out of Oxnard as the following:
- $6.75 - $10.50 for 2 dz sizes
- $7.50 - $10.56 for 2 ½ dz sizes
- $7.75 - $11.55 for 3 dz sizes
- $10.50 - $13.75 for 4 dz sizes
Out of Salinas – Watsonville, California, the USDA reported prices as the following, as of June 17, 2015:
- $8.50 - $12.55 for 2 dz sizes
- $8.50 - $12.55 for 2 ½ dz sizes
- $10.45 - $13.50 for 3 dz sizes
“The market is oversupplied and demand is light, so that curtailed the pricing,” Russ Widerburg, Sales Manager for Boskovich Farms, said. “Until Oxnard finishes in a couple weeks you won’t see much change in the market.”
Growers have reported no issues with weather, with cool evenings and an overall mild climate.
“There’s nice growing conditions in Salinas,” continued Alcocer.
It sounds like it’s going to be another productive season out of Salinas. Stay tuned as we continue to report on this transitional phase.
AUSTIN, TX - When you think organic produce and Whole Foods, you may think they go hand in hand. But recently, due to the company’s latest organic rating system, that relationship could see some strain.
According to The New York Times, some organic farmers are now arguing that Whole Foods' new rating system (which designates produce as only “good,” “better,” or “best”) is “misleading” consumers to believe that conventionally grown produce is an equivalent to organic. These longtime suppliers to Whole Foods are arguing that the program titled “Responsibly Grown,” can grant a company that does not meet federal organic certification the same quality of rating as an organic company. The New York Times adds that conventional growers may even receive higher rankings than organic farmers by implementing things like garbage recycling programs, alternative energy sources, pesticides reduction, and field conservation.
“Whole Foods has done so much to help educate consumers about the advantages of eating an organic diet,” five farmers wrote to Whole Foods Co-CEO and Co-Founder John Mackey in a letter obtained by The New York Times. “This new rating program undermines, to a great degree, that effort.”
Vernon Peterson, a grower and packer of organic fruit in Kingsburg, CA, spoke with NPR about this new system, calling it "dumbfounding."
"Organic is responsibly grown, for goodness sake," he told NPR. "Organic should be the foundation of anything that Whole Foods might do."
Peterson added that organic certification is more difficult to achieve and means more than Whole Foods' new ratings. To follow organic rules is expensive and requires third-party auditors to make sure growers follow those rules. There are no outside auditors in Whole Foods' system.
During a conference call from Whole Foods in May, Mackey acknowledged that the rising demand in organic foods was having a substantial benefit to the company's business.
“We’re doing all we can, but the reality is, there’s more competition,” Mackey said. “Everybody is jumping kind of on the natural- and organic-food bandwagon, and that’s really, frankly, due to our success.”
When Matt Rogers, Associate Global Produce Coordinator at Whole Foods, was asked about the company’s produce rating system, he said it was merely an attempt to help consumers make choices. Rogers also noted that by forbidding some pesticides and awarding points for conservation and reduced water use, Whole Foods is both raising the bar for conventional suppliers and inching them closer to organic standards.
“Organic is an incredibly deep standard, and at Whole Foods we celebrate that in very consistent, long-term ways,” Rogers told The New York Times. “But the organic standard does not cover water, waste, energy, farmworker welfare, and all of these topics are really important, too.”
All in all, with both sides having both logical and financial reasonings behind their arguments, this battle may go on longer than either group would hope for.
Stay tuned to AndNowUKnow as we continue to follow this new wave in produce rating conventions.
UNITED KINGDOM - From dusting drones to pruning animatronic arms, aspects of the industry are becoming more and more the stuff of science fiction brought to life. And broccoli could be next, if the University of Lincoln has its way.
“Broccoli is one of the world’s largest vegetable crops and is almost entirely manually harvested, which is costly,” Prof. Tom Duckett, Group Co-Ordinator of the Agri-food Technology Research Group at the University of Lincoln and Leader for the project, said, according to The Engineer.
According to the article, the project is currently getting ready to test 3D camera technology to see if it can be used to identify and select broccoli ready for harvest, which is seen as an important step towards the development of a fully automatic harvesting system that could ultimately be used for a variety of crops.
Jointly funded by BBSRC and Innovate UK, the goal is to reach a fully automatic robot system that can significantly reduce production costs for broccoli.
“In all our agri-related research work, our mission is to develop new technological solutions for the business of producing food through agriculture,” Prof. Duckett said. “The long-term impact of our research includes safer food, less waste, more efficient food production, and better use of natural resources, as well as promoting human health and happiness.”
Broccoli production is far from the only crop that the University of Lincoln is attempting to aid, according to Phys Org. The department is working towards the early detection and biocontrol of prevalent diseases in both mushrooms and potatoes, also funded by Innovative UK. This aspect involves developing diagnostic tools for farm use and alternatives to chemical pesticides, enabling primary producers in these industries to rapidly diagnose the existence of disease and make counter decisions sooner.
The University of Lincoln was reportedly one of more than 70 businesses and universities in the UK to share the £70 million (nearly $111 million) Agri-Tech Catalyst funding, which aims to improve the development of UK agricultural technology.
To read about similar agricultural innovations, check out the stories below:
5 Favorite Bots for the Produce Industry
Tanimura & Antle's New Plant Tape
Harvest CROO Robotics Developing an Automated Strawberry Picker
NOGALES, AZ - Del Campo is bringing your favorite veggies this season, but with a twist!
Introducing Del Campo’s t’mates and Sweet Baby Bells to your nearest produce department. The uniquely packaged t’Mates break through the sea of plastic clamshells with its 100% recyclable and beautiful box display, all while providing consistent cocktail tomato flavor. This variety is exclusive to Del Campo, and has been voted Best Tomato on the Vine.
Also available are the company’s greenhouse grown Sweet Baby Bells. These consumer favorites come in 3 crisp flavors, and are the ideal convenient snacking peppers.
If you’d like to see your product in this segment, please send samples to 2020 L Street, Suite 320, Sacramento, CA 95811.
MCLEAN, VA - Gladstone Land Corporation (NASDAQ: LAND) is a public company that owns 34 farms, comprised of 8,787 acres in 5 different states across the U.S., valued at approximately $213 million. Now anyone can own farmland by buying stock in the public company.
What is Gladstone Land Corporation?
The real estate investment trust has been buying up farmland across the nation, and it’s not in any hurry to be worth billions of dollars. As David Gladstone, CEO, tells me, the goal is to simply own the land and lease it out.
"We would like to work with farmers that want us to buy farms for them to lease on long term leases," said Gladstone. "Many farmers are worried that if they do not own the land they will not be able to farm it. But we want the same farmer to lease our land for very long periods. Most businesses do not tie up their equity to own their real estate but rather use their equity to build their operations."
“It’s a simple business model,” Gladstone continued. “I’m a very methodical lender and investor. We just want to buy a good farm, lease it to someone and hope it sits there forever and a day with the same farmer farming it. Our goal is to continue to buy land and put good tenants in place on the same farm for the next 20 years. I like the idea of being worth billions of dollars, but we’re not trying to do it overnight.”
How did Gladstone get started?
Gladstone’s deliberate approach to investing in land has led many to wonder: What is Gladstone Land Corporation? Just over a decade ago, David Gladstone, who formerly ran Coastal Berry Co. in Watsonville, CA, leased approximately 5,000-6,000 acres at the time and thought he’d be better as more of an investor than an operator. In 2004, he sold the operations of growing and selling to Dole, which became his only tenant at the time. After raising additional equity and better lines of credit, Gladstone started to build the company up. Gladstone has other funds such as Gladstone Investment (NASDAQ: GAIN) and likes the agriculture area. Gladstone recently bought a company called Jack Rabbit, a nut harvesting equipment maker in California.
“That original shot of land that was leased by Dole was the first thing that sparked our interest going forward,” said Gladstone.
Expansion
Gladstone currently owns land throughout California, Arizona, Florida, Oregon, and Michigan. Most recently, the company purchased a $3.2 million organic farm in Florida and is moving up the east coast as far as New Jersey.
Gladstone tells me that the company is just now venturing into the Midwest after having opened an office just outside of St. Louis. William “Bill” Hughes has been welcomed to the Gladstone team to seek out potential acquisitions of farms in the Midwest. He will be looking for farms that grow fresh produce like sweet corn, green beans, melons, potatoes, cabbage, and more.
“We are beginning to look at tree and vine crops and trying to understand how they trade and where they go and try to find the best operators,” said Gladstone. “We’re only trying to work with the top 20% or 30% of farmers who represent the best and brightest in the growing area.”
Gladstone’s business model is highly dependent on being able to borrow money at lower than it’s being leased so that Gladstone’s shareholders get the difference between what they get in from the farmer’s rent and what the company has to pay the lending institution in interest for helping them buy the land.
“So far [our model] has worked very well,” said Gladstone. “We have plenty of firepower to go forward at our will.” Gladstone mentioned that they can buy farms for stock in a tax free exchange for those who want to keep the income coming in and not have to pay taxes on the capital gains from selling the farm. The company pays a dividend of four cents per share per month and recently increased the dividend by 33%.
Considering how much land the company has acquired within the past year, I don’t doubt Gladstone’s confidence. Stay tuned as we continue to follow this company's plans for the future.
MONTVALE, NJ - The grocery retailer A&P has announced they are now looking for buyers for 137 of its 301 stores. This comes just 2 years after the company tried to sell itself in 2013, the New York Post reports, but allegedly the company came up short.
Reportedly, UFCW representatives on Monday told its members that it had confirmed that A&P is, “actively seeking potential buyers for part or all of the company” and “several companies are interested in buying A&P in whole or in part.”
A&P’s banners include Food Emporium, Pathmark, Waldbaums, and A&P stores. Out of the 137 stores on the list, most are scattered throughout Connecticut, New Jersey and New York and includes both well-performing stores and poor-performing ones, the New York Post reveals. The ranges for the closing locations vary anywhere from $50 million revenue a year, to only 7.9 million in sales a year.
A&P confirmed that they had been reviewing its strategic options since March, saying, “The review includes raising new capital from investors, considering new business-partner relationships and exploring the sale of certain assets of the company.”
The New York Post cites both competition from rivals like Whole Foods, and Trader Joe’s, as well struggling management as major reasons for the companies waning success.
“They are deeply in debt and struggling to produce a profit,” said supermarket Consultant Burt Flickinger. Flickinger lists that Stop & Shop, ShopRite, and Key Food could be contenders to buy the stores.
A&P told The New York Post that currently, “no decisions have been made” and that there is “no timetable set for the completion of the process.”
CORAL GABLES, FL - Turbana is KEEN on growing.
The company received hundreds of applications from all over the country when it announced last year that it was looking to partner with a community cause in its “Win 25K For Your Cause,” and thousands of votes have declared a winner: Kids Enjoy Exercise Now (KEEN) New York.
“KEEN New York's mission has always been to provide programs designed to keep youth with disabilities healthy, while having fun,” Maggie Harrison, Executive Director of KEEN New York, said, according to a press release. “Our partnership with Turbana provides KEEN New York with an opportunity to create a gardening program right in the heart of NYC. This exciting collaborative project will teach our Athletes the importance of healthy eating and give them the skills necessary to grow an urban garden. KEEN New York is grateful to Turbana for its dedication to our "growing" KEEN New York family.”
KEEN is an organization that gives children and young adults in New York with developmental and physical disabilities recreational opportunities. Its new partnership with Turbana has allowed them to launch a new, more produce-focused initiative called “KEEN on Growing,” giving KEEN Athletes an opportunity to gain positive attitudes towards healthy eating, as well as having the chance to work collectively and develop responsibility.
“Our partnership is a perfect fit,” Marion Tabard, Marketing Director of Turbana, said. “Both KEEN New York and Turbana strive to empower communities, and the ‘KEEN on Growing’ program will give KEEN Athletes an opportunity to grow as individuals and develop social skills within a group setting.”
The partnering organizations had a kick off party on Sunday, June 7th, where they proudly reported an event of family fun, games, and where Athletes painted their own pottery and started their first vegetable garden.
According to the company, the “KEEN on Growing” program, which also shows Athletes the importance of community and environmental consciousness, is a product of Turbana’s larger “Growing Smiles, Sharing Goodness,” movement, which seeks to inspire individuals to eat smart, be active and get involved in their communities. It is based out of P.S. 206 Jose Celso Barbosa, where the kick off took place, and is open to members of the KEEN organization and students of the school with special needs.