SINT-JANS-MOLENBEEK - The Delhaize Group held a General Meeting yesterday to go over the company’s previous financial year, new challenges and strategies, and responsibilities and discharges of the retailer’s directors. In the meeting, Chairman of the Board Mats Jansson addressed the significant changes in the food retailing industry.
“Food Retail has been and will continue to be a highly competitive industry,” Jansson stated during the meeting, according to the company’s transcripts.
The main challenges he said that the company should address were:
- The growing importance of e-commerce with a rise of digital in food retail.
- The increasing attention that consumers place on “sustainability” issues.
- Consolidation in the food retailing industry.
Jansson commented that the changing consumer needs and demands prompt traditional grocers to continue investing in order to remain relevant. “To deal with these challenges, the food retail market, particularly in the United States, is experiencing an acceleration in consolidation as companies look to realize scale benefits in order to continue funding these investments.”
In regards to the company’s discussion with Ahold about a potential merger, Jansson particularly addressed his own side concerning J.P. Morgan and setting aside any possible conflicts his role with the bank could have with potentially merging with Ahold.
The Delhaize Chairman is also a member of the J.P. Morgan European Advisory Council, and has chosen to step down from the role despite not being able to confirm that J.P. Morgan is an advisor to Ahold.
“While I cannot confirm that J.P. Morgan is advisor to Ahold, I can confirm that my advisory role to J.P. Morgan does not create any conflict of interest given the scope of my consulting mission,” the Chairman reportedly stated in the meeting. “Nevertheless, in light of Delhaize Group’s discussions with Ahold and in order to avoid any future possibility of the appearance of any potential conflict of interest, I have decided to temporarily suspend my consultancy role at J.P. Morgan. I believe this is the highest integrity decision I can take with respect to this matter.”
As we previously reported, the two companies confirmed that they had begun discussions of a possible merger agreement, but have not since disclosed anything further on the matter.
“As you have all read, we have confirmed that Delhaize Group and Royal Ahold N.V. have entered into preliminary discussions to explore the opportunity of combining our two companies,” Jansson reiterated during the meeting. “At this point, I cannot say whether these discussions will or will not result in a future transaction. However, I will commit to you to communicate material updates, if any, in accordance with regulatory requirements.”
To keep up to date with this story as it develops, keep checking in with AndNowUKnow.
LADERA RANCH, CA - Peak melon season is upon us, and Dulcinea is gearing up for a busy summer ahead with the start of its domestic deal in Yuma, Arizona.
“Our Yuma, Arizona crop is healthy and is producing very high yields. We’re seeing great quality and demand so far,” Steve Dabich, Dulcinea’s Vice President of Sales, tells me. “We anticipate producing 15 percent more volume in 2015 versus 2014.”
Summertime favorites are key to this year’s crop. The latest addition to Dulcinea’s portfolio of products is the new Sunny Gold mini watermelons with a bright yellow flesh and sweet flavor. Dulcinea is also currently harvesting its Tuscan cantaloupe and Pureheart mini watermelons.
“We produce some of the our highest yielding and best tasting Dulcinea products in Yuma, Arizona and Huron, California, which will start around July 1,” continued Dabich. “We’re looking forward to providing consumers with more great tasting Tuscan cantaloupes, Sunny Gold yellow mini watermelons, and our Pureheart mini watermelons.”
Steve says that consumers can look forward to the quality eating experience, consistent flavor, and high brix the Dulcinea Tuscans bring to consumers, as well as the “more taste, less waste” selling point Pureheart mini watermelons bring to retailers.
The melon market has been in flux due to the abundance of product being produced in Mexico and the finish of offshore melons. Steve tells me, however, that that will change over quickly given that customers look forward to U.S. grown product and that it’s the start of peak melon season.
Stay tuned to AndNowUKnow as we continue to track the domestic melon season.
MEXICAN COAST - The first tropical depression of the season has appeared this week off the coast of southern Mexico, and quickly strengthened into the tropical storm now known as Andres.
Andres is expected to continue to strengthen throughout the weekend, AccuWeather reports, and could even become a Category 1 or 2 hurricane as it remains on warm ocean waters.
The storm is expected to weaken by early next week when the storm moves to cooler waters and southwest Baja California.
While Andres is not expected to make contact with the Mexican coastline, The Weather Channel predicts that some high surf may eventually reach the Baja peninsula, and as far as Southern California next week. The storm could also produce dangerous rip currents throughout these areas.
AccuWeather reports that another tropical threat may also take shape off the coast of southern Mexico early next week, and could become the second tropical system of the season. This possible storm would have greater direct impacts on Mexico than Andres, as it would be closer to the Mexican coastline and could bring some rain and wind to the southern coastline of Mexico.
Stay tuned as AndNowUKnow updates you on these developing weather system.
WENATCHEE, WA - Mild weather throughout winter and spring has bloomed into an early stone fruit season for Oneonta, bringing the company’s conventional and organic tree-ripened fruit a week to ten days sooner than usual.
The timing, according to the company, has not affected the quality of the fruit.
“Volume and sizing of the conventional [apricots] will be similar to last season, but our organic volume will be up slightly this season, mostly due to new acreage of Robadas coming on line,” Oneonta Marketing Director Scott Marboe said in the press release, stating that certified apricots will ship through July 15, with conventional cots shipping from June 10 through July 20.
The first organic apricots are set to ship on Monday, June 1st.
“For the past several seasons, we have been working to increase our organic volume in all categories,” National Sales Representative Bruce Turner commented. “Consumer demand in organic and natural continues to grow, and our customers demand it. We plan to continue adding more organics to our manifest every year.”
The company noted that it expanded its entire stone fruit program last year, with nearly 30 percent of total volume being composed of:
- Organic apricots
- Organic peaches
- Organic nectarines
- Three varieties of organic pluots
The white-fleshed laCrème variety, also notable in the apricot category, is packed in the 12/1-pound clamshell, which Turner reportedly said are “ just too good not to try.” Oneonta is also adding late-season Gourmet Apricots in its reportedly popular one-pound pouch packaging.
Marboe said the apricots are of excellent quality, as well as being small, sweet, and good for snacking. He also added that California is finishing its apricot season early, with demand anticipated to be excellent for Washington fruit.
The late-season fruit, according to Turner, are New Zealand-originated varieties that start July 25 and run about six weeks.
The company stated that consumers can expect to see its organic peaches on shelves June 25th through Sept. 1st, with conventional peaches shipping on Aug. 1st, through Sept. 15th, finishing somewhat earlier than normal.
“The volume and sizing on conventional peaches is similar to last season,” Marboe commented, saying the 2015 crop looks excellent. “Our organics will be off just slightly as acreage is grafted to newer white-flesh varieties.”
Nectarines are down somewhat in volume this year, according to the release, with an early start. Organics will ship June 25th through Sept. 1st, and conventionals will start Aug. 1 and ship through mid-September with strong demand anticipated in both categories, according to Turner.
The Robada pluot variety, according to grower Scott Kehl, "melts in your mouth." The proverbial “new kid on the stone fruit block,” pluots will start up with organics around Aug. 25th, finishing three weeks later.
EDMONTON, AB, CANADA - The Little Potato Company has its sights set on the future with a slate of new investments, products, people, and packaging to continue its penetration in the North American market.
The company has recently invested in new packing facilities and distribution centers across North America to boost production for its proprietary, unique varieties of Creamer potatoes across all 52 states in the U.S. and all provinces in Canada.
The Little Potato Company now has three main packing facilities and five distribution centers to facilitate efficient and on-time delivery throughout North America, according to a press release. This includes a new washing, sorting, and packing facility built in 2014 that tripled flow-through capacity. To support continued expansion, the company is looking at further infrastructure opportunities in the U.S.
Aiming to meet the increasing demand for what the company calls “the fastest growing segment in the potato category across North America,” The Little Potato Company has increased field production by 30 percent in 2015 by expanding its dedicated Creamer potato acreage and employing 25 new potato professionals.
“It takes our team many years to create and deliver a new variety,” said Angela Santiago, Co-Founder and CEO of The Little Potato Company, one of the largest companies in the world to focus solely on Creamer potatoes. “It takes experience, care, and planning to make sure all our Creamers taste and look fantastic, and that our growers can grow enough to satisfy increasing demand from Creamer potato lovers.”
Each Creamer is harvested, washed, sorted, and sized before packaging. Last year, The Little Potato Company rebranded all of its material and packaging to incorporate a new logo and colors, as well as launched a new 1.5 lb. gusset bag. In all, The Little Potato Company’s proprietary Creamer potatoes are sold in 1.5 lb., 3 lb., and 5 lb. sizes.
Two unique value-added products have also recently debuted in the company’s product line: Oven | Grill Ready kits and Microwave Ready kits that bundle 1 lb of Creamer potatoes with easy-to-use trays, and a choice of six unique seasoning flavors.
“We literally travel the world working with select, global breeder partners to search out just the right attributes in Creamer potatoes,” continued Santiago. “We only accept Creamers that are unique, bursting with delicious flavor, look great – and will stay that way from farm to shelf to plate.”
Keep an eye on the company’s Facebook, Instagram, Pinterest, Twitter, and YouTube pages for more information on its new Creamer variety to be launched later this year.
ISSAQUAH, WA - Costco has announced its Q3 2015 financial results, topping Wall Street analysts' expectations with above average profits. The company has also announced plans to add 15 additional warehouses prior to the end of its fiscal year on August 30, 2015. Costco currently operates 673 warehouses, including 474 in the United States and Puerto Rico.
“The percentage of annual openings each year will continue to grow outside of the U.S. Versus our expectations five years ago there's probably more openings in the U.S. than we’ve anticipated, so that’s good news for the U.S, but we’ll still see more growth internationally. Could it be 50-50 one day? Probably. But we’ll keep growing,” said Richard Galanti, Executive Vice President and CFO for Costco in a call to investors.
Net income for the quarter grew to $516 million, or $1.17 per diluted share, compared to $473 million, or $1.07 per diluted share, last year. Net sales for the quarter also increased one percent, to $25.52 billion over last year.
According to Bloomberg Business, Costco has outperformed two of its biggest competitors, Wal-Mart and Target, recently. Sales at Costco stores open a year or more rose 6 percent this quarter, while Target in its most recent quarter reported only a 2.3 percent gain. Both Wal-Mart’s Sam’s Club warehouse chain posted a 0.4 percent increase.
“It’s always a competitive field, and we still respect our direct competitors. I look at organic, it started off small, but it’s growing faster. It’s where we shine in terms of quality and value. That’s nothing but a positive for us going forward,” continued Galanti. “Fresh foods, gas, executive membership, and opening in new geographic locations is where we shine.”
Other highlights from the release include:
- Net sales for Costco’s Q4 are $25.5 billion.
- Sales in membership fees for Costco’s Q4 are $584 million.
- Merchandising costs for Costco’s Q4 are $22.7 billion.
Stay tuned to AndNowUKnow as we follow all the industry’s financial news.
WASHINGTON, D.C. - The USDA has reportedly lifted reparation sanctions on Atlanta Specialty Inc., finding that it has satisfied a reparation order issued under the Perishable Agricultural Commodities Act (PACA).
According to a press release, the Forest Park, GA company can continue operating in the produce industry upon applying for and being issued a PACA license. James M. Zeidler was reportedly listed as the officer, director, and major stockholder of the business and may now be employed by, or affiliated with, any PACA licensee.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, the USDA lifts the employment restrictions of the previously named, responsibly connected individuals. According to the release, the USDA also requires any unlicensed company that fully satisfies all unpaid reparation awards to obtain a license if it continues to operate in the industry.
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 (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.
BAKERSFIELD, CA - Despite a potentially tight onion market and a role reversal in the weather from April to May, Country Sweet Produce is going into the time of summer barbecues and long weekend holidays locked and loaded for a good onion season.
“So far what we’ve received hasn’t hurt us, it’s just making life interesting right now,” Duke Dodder, Commodity Sales Manager at Country Sweet Produce, tells me in regards to some surprisingly cool May weather, adding that the San Joaquin area got a quarter of an inch of rain with some cool, breezy weather a couple of weeks back. Something that the white onions apparently enjoy.
“The cooler weather in the end [of the month] could contribute to better whites,” Duke said, adding that they look better than usual and the company is expecting a nice crop on the first of June, right on time in comparison with last season.
While Duke also tells me that the onion market has been rough the last couple of seasons, it looks like this one might be hot with good demand and tight supply in between the transition from the desert area's harvest to the San Joaquin Valley’s.
“Demand is good right now,” Duke said, highlighting that the Memorial Day weekend and the quickly-approaching 4th of July celebrations are times when consumers want onions. “The desert is finishing up, and we aren’t in, Mexico isn’t in, so the market is very tight.”
But he also cautioned that the week’s pause in supply could change the market before kick-starting back into gear next week, saying that now is a hard time to project anything.
For now, Country Sweet’s “rockin’ away date” is set for June 8th, with a current focus on its specialty programs with Sweet Italian Red Onions and Yellow Specialty Sweet Onions, which Duke tells me the company has seen great success with.
“We are prepped and ready to go,” he concluded, saying that it should be a good onion year.
For all the latest in industry influences, stay tuned to AndNowUKnow.
CASTROVILLE, CA - Ocean Mist Farms has announced it will be sponsoring the Castroville Artichoke Food and Wine Festival as it returns to the Monterey County Fairgrounds May 30-31.
California’s official state vegetable is getting its 56th year of celebration, with the festival anticipated to attract more than 30,000 visitors. 2015 will feature more food and wine than ever before, and even bigger entertainment acts.
“We are excited that the festival continues to expand and is one of the region’s most anticipated events,” said Ron Stefani, President of the Castroville Artichoke Food and Wine Festival. “This event is a unique opportunity to highlight the impact artichokes have in Castroville and Monterey, and our goal is to share the good fun, delicious flavors and long-standing festival traditions with the local community and visitors from around the world.”
Festival attendees can enjoy activities such as a farmer’s market, the Ocean Mist Farms Agro Art competition, arts and crafts vendors, children’s activities, the opportunity to meet Ocean Mist Farm’s ambassador “Arti the Artichoke,” artichoke field tours and a competitive artichoke eating contest. Attendees can also expect a variety of foods prepared using fresh artichokes, including artichokes creamed, steamed, deep-fried and grilled, and in burritos, soup, ice cream, cupcakes and more. Guests over 21 can enjoy wine tasting, micro brews, and artichoke pairings.
According to a press release, Northern California’s well-known chefs, Tony Baker and Ryan Scott, will be showcasing the versatility of the artichoke and share unique preparation techniques. Scott, host of San Francisco’s KGO radio cooking show and a Top Chef Season Four contestant, will broadcast live from the festival on May 30.
Ed Boutonnet, CEO of Ocean Mist Farms, said, “We’re proud to support the Castroville Artichoke Food and Wine Festival and to celebrate Castroville’s long and storied artichoke history.”
Tickets for the 2015 Castroville Artichoke Food and Wine Festival are available for purchase at www.artichokefestival.org and can be purchased at the door.
IRVINE, CA - The California Avocado Commission (CAC) has announced its plans for the 4th of July holiday, and on the menu? Avocados of course. With 117.6 million pounds of avocados to be consumed for the holiday, the celebration of American independence is expected to be the second largest avocado consumption event of 2015. To encourage demand leading up to and during the holiday the CAC plans to build on the American connection between the holiday and domestically grown avocados.
"In 2012 CAC set out to build a mid-summer avocado consumption event around 4th of July and we’re proud that it has become one of the top-two consumption events of the year for avocados," said Jan DeLyser, Vice President of Marketing for CAC.
CAC advertising, promotion, and public relations create usage awareness in connection with the American Summer Holidays. General market radio, print ads, billboards, and a new video showcasing California avocado grower Tom Pecht and his family will anchor the company’s advertising campaign during this period. According to a press release, CHOW.com also will feature California avocado summer entertaining and 4th of July recipes.
Chef Charlie Kleinman of San Francisco’s Wexler’s BBQ is serving as CAC’s media spokesperson for the 4th, and has developed two new recipes: a Pulled Pork Sandwich with California Avocado Slaw and Cornmeal Crusted Fried California Avocado and Bacon Salad with Molasses Vinaigrette. CAC will promote Kleinman’s recipes via a press release and media outreach.
CAC’s website, CaliforniaAvocado.com will be including a 4th of July landing page, as well as offer consumers a chance to win prizes by participating in its All American recipe contest. Social media activity and advertising will promote California avocado recipe ideas and tips for the holiday. The Commission’s blogger ambassadors are creating American Summer Holidays-themed posts and will pin to CAC’s American Summer Holidays Pinterest board.
An example of CAC’s customer-specific marketing is its support of Albertsons/Vons/Pavilions Southern California in-store signage program. California avocado grower Chuck Bandy, who will be one of many local growers featured in the in-store signage as well as the weekly mailer, shared his story at a local Albertsons store for a recent CAC event. Its California-grown POS program is a natural fit with California avocado communication and shopper interest in locally grown produce.