Fri. May 22nd, 2015 - by Christofer Oberst

PASADENA, CA - In the two years since Sun Pacific bought the exclusive rights to the Cuties brand, the company's seedless, easy-to-peel mandarins have quickly gained notoriety throughout supermarkets, but has the deal paid off?

For some parents and kids alike, mandarins have become synonymous with the name "Cuties," just as tissues have been called Kleenex. While it is a bit premature to say whether or not Cuties are a household name, Sun Pacific's $20 million annual marketing campaign has made huge strides since May 2013 when it was announced that the Cuties brand would be exclusively sourced by the California grower. Now, two years later, Cuties have appeared on our television screens and even fast food menus, encouraging parents to look for that recognizable logo and packaging. 

Sun Pacific Cuties

Partnerships with companies like McDonald’s have strengthened brand recognition among moms and children, two of Sun Pacific’s biggest target audiences for Cuties. Since the inclusion of Cuties in McDonald’s Happy Meals, Sun Pacific has been exceeding expectations and feedback has been positive thus far. 

Television ads, such as McDonald’s Penguins of Madagascar commercial, have also featured Cuties as one of the star attractions, building an even stronger connection with children. A big part of Sun Pacific’s marketing strategy is to create an emotional connection with moms so that they feel confident that they’re giving their kids a healthy, nutritious snack guilt-free. 

Brand power, however, is just one of the factors behind the success of Cuties thus far. Sun Pacific is determined to match the growing demand with a consistent supply of quality mandarins. The company brings twelve years of experience growing mandarins to the brand, and has since added Moonlight Companies, LLC and Wawona Packing Company to the Cuties Cooperative to further bolster the supply, service, and merchandising support to its growing customer base. 

Sun Pacific didn’t just stop at television ads. The latest Cuties digital marketing campaign gave “playing with your food” a whole new meaning when Sun Pacific introduced the Cutie Curl photo contest. The campaign encouraged children and “children-at-heart” to show off their Cutie-peeling skills for a chance to win an all-expenses-paid trip to privately tour Sun Pacific’s Cutie orchards. 

Campaigns like this, along with Sun Pacific’s partnership with fast food icon McDonald’s, have proven that Cuties is a brand to be reckoned with in the citrus category. Though Cuties have been relatively successful for these past two years, competing brands such as Wonderful Halos have also been stepping up their game with widespread marketing efforts on television. In the meantime, it will be interesting to see what new strategies Sun Pacific may employ to keep this momentum going in the years to come. If these past two years are anything to consider, can we expect to see more ads targeting parents and their children or more partnerships with fast food giants? Time will tell.

Sun Pacific


Fri. May 22nd, 2015 - by Jordan Okumura-Wright

STOCKTON, CA - O-G Packing & Cold Storage is finishing up its California Brooks Cherry variety and is now preparing to transition to Corro and Tulare varieties next.

Tom Gotelli, Plant Manager and fourth generation Gortelli to work with the company, gave AndNowUKnow an exclusive peek into the company’s technology moves as they have improved and, in turn, contributed to providing a better product.

“Everybody’s moving this way, to electronic sorting and sizing throughout the world,” Tom tells us. “Chile’s been doing it a little longer than we have, but you can see California’s really moving and Washington’s coming right along with it, too.”

As for O-G Packing, with 72 lanes and partnering with Unitec for its own electronic sorting and sizing, the company has “both feet in.”

Tom also told us that the company is happy with the season, stating that a bit of rain helped the cherries out by cooling things off.

To see all that Tom had to say about cherries and the sorting technologies that company uses, watch the short video above.

O-G Packing & Cold Storage 

Fri. May 22nd, 2015 - by Jordan Okumura-Wright

SALINAS, CA - Mann Packing is now shipping an 18-ounce veggie tray in time for parties, picnics, and other on-the-go summertime events that require refreshing food choices.

Kim St George, Director of Marketing and Communications, Mann Packing“Mann has designed eye-catching Summer-themed graphics for our small & large vegetable trays to give the retailer a seasonal in and out promotional opportunity while providing the consumer a fun look on their veggie trays for warm weather entertaining,” Kim St George, Director of Marketing and Communications for Mann Packing said.

According to a press release, the company’s seasonal Summer Fun-themed veggie tray contains assorted vegetables that are washed and ready to serve. The packaging itself features a white sand beach with lawn chairs and a castle in-the-making in a top seal container.

Mann Packing’s Summer Fun veggie tray contains:

  • Celery
  • Carrots
  • Sugar snap peas
  • Broccoli florets

And consumers don’t have to shop for dips either. The tray is served up with its own 3-ounce container of Ranch dip, ready to go.

The Summer Fun vegetable tray can already be purchased, and will be available through the summer months into September, according to the company, to customers in both the United States and Canada.

Mann Packing Employees supporting Red Nose Day

The company also supported Red Nose Day yesterday, May 21st, which serves to raise awareness and funds to fight global childhood poverty. For each #rednoseday25, the Bill and Melinda Gates Foundation has pledged a $25 donation. According to the company, the nationally-selected recipient for the funds raised by the event was the Boys & Girls Club of America.

Fri. May 22nd, 2015 - by Christofer Oberst

SAN FRANCISCO, CA - If you’re looking to get a piece of that drone action but you still haven’t quite set your heart on it, you’re in luck. Meet SkyCatch, the “Uber for Drones.”

With unmanned aerial vehicles on their way to becoming a hot new technology among companies in need of land surveying, SkyCatch’s “Workmode” service provides businesses with a drone and a certified pilot without having to dole out the dough to own the technology for themselves. That’s a massive selling point for companies that are interested in drones, but don’t yet see them as a necessary investment.

Source: SkyCatch

Check out the 39 second video below to see what drones can do for agriculture...

The business model works both ways. Companies can now afford drones for quick, one-off surveying projects, and independent trained pilots for hire can make money by leasing their drones and flying them on-site. According to Wired’s Klint Finley, pilots interested in joining Workmode need to pass both a flight test and a knowledge test that includes topics such as photogrammetry, aerospace law, and more, to appear as “verified” pilots on the website.

SkyCatch

For those of us in the produce industry, drones can be outfitted with cameras that can map and monitor farm activity. Skycatch’s platform, in particular, can scan companies’ farms on a daily or weekly basis to develop vegetation indices that offer insights on irrigation and disease management, according to the company website. Skycatch also tracks assets in the field and provides information on equipment conditions.

SkyCatch

The San Francisco, California-based startup is backed by major investors such as Google Ventures, and is currently working with the FAA to solve a number of legal issues with flying drones for commercial purposes.

“The FAA’s biggest worry is public safety, which we share,” Christian Sanz, SkyCatch Founder, tells Wired. “They don’t want these drones flying around in parks, in highly populated areas.”

Earlier this year, the FAA issued the first-ever drone authorization permit to a company in the agricultural industry to use drones for “crop sourcing.” The FAA has already made steps to approve Yamaha Motor Corporation’s RMAX crop dusting drone for crop spraying purposes, as well.

So if you’re itching to see a drone in action, but aren’t yet convinced of this technology, SkyCatch could be an interesting option to try out.

SkyCatch

SkyCatch Workmode

Fri. May 22nd, 2015 - by Jessica Donnel

COMMERCE, CA -Smart & Final has a new branding campaign in the works, and this time it's all about the “&”. The “&” symbol, or the ampersand as it’s otherwise known, has been in the logo for the past 144 years, but now the company wants to showcase it front and center to highlight Smart & Final’s relationship with both its customers and the communities it serves.

Eleanor Hong, Chief Marketing Officer, Smart & Final"Smart & Final has a rich history and commitment of inclusion. The ampersand signifies many different components of our company, including the partnership between our founders Mr. Smart & Mr. Final, treating our customers like friends & neighbors, and serving as a warehouse & market," said Smart & Final's Chief Marketing Officer, Eleanor Hong. "We are rebranding to ensure customers know who we are, what we offer and what we stand for so that they can choose Smart & Final as their primary shopping destination."

The roll out for this new campaign will include print, radio, television, and outdoor advertising in select markets and digital outreach now through July 3rd, and aims to tell the story of what the value-oriented food and staples retailer has become through its growth initiatives and will highlight the company's heritage. Smart & Final says it is seeking to increase presence and aggressive store growth plan by highlighting the "&".

According to a press release, the "&" in the company's name symbolizes the powerful pairings that give Smart & Final its identity including Warehouse & Market, Business & Households, Restaurant Quality & Low Prices, among others. 

"Our successes are marked by connections," added Hong. "Households rely on us for the finest meats and freshest produce for their families while local restaurant owners depend on us for the right products, prices and sizes. They will find all of these offerings and more at Smart & Final stores located in the communities we build together."

As we’ve previously reported, Smart & Final is scheduled to open more Smart & Final Extra! stores in 2015, although it has lowered its expectations from 20 new locations to 16.

Smart & Final

Thu. May 21st, 2015 - by Christofer Oberst

CORONA, CA - Veg-Fresh Farms has announced that it has earned a license from Fair Trade USA to use the Fair Trade Certified™ label on a variety of its produce.  

Randy Cancelleri, Partner, Veg-Fresh Farms“Our efforts have paid off to align ourselves with farmers who are Fair Trade Certified™,” says Randy Cancelleri, a Veg-Fresh Farms Partner. “We currently have Fair Trade Certified™ for select Roma, heirloom, and grape tomato growers, in addition to squash and bell pepper growers in Mexico.”

Adam Cancelleri, Partner, Veg-Fresh FarmsAdam Cancelleri, another Veg-Fresh Partner is working to develop even more initiatives to strengthen Veg-Fresh Farms commitment to social responsibility, and will partner with growers who are committed to be good stewards of the land. 

Adam included, “At Veg-Fresh Farms we value our partnerships with our Fair Trade Certified™ growers, and believe by deepening our vertical integration we can both support sustainable farming communities and strengthen our global supply chain.”  

According to a press release, Veg-Fresh Farms currently partners with three ranches that are Fair Trade Certified™, and works with another grower who is Rainforest Alliance Certified. 

Want to learn how to get your business Fair Trade Certified™? Read our story about Fair Trade certification here.

Veg-Fresh Farms

Thu. May 21st, 2015 - by Jordan Okumura-Wright

GUADALUPE, CA - Apio, Inc. is introducing three new single-serve products to meet the demand for alternative protein options.

The company’s new Plant-Powered Protein™ Salad Kits contain 40 percent or more of the recommended daily value of fiber, contains at least 13 grams of protein per serving, and is powered by produce.

Anne Byerly, Vice President of Marketing, Apio, Inc.“Dieticians and chefs are leading the trend toward additive nutrition – the practice of powering up meals with more nutritious choices,” Anne Byerly, Apio’s Vice President of Marketing, said in a press release. “Eat Smart’s new Plant Powered Protein™ salad kits are the perfect solution for consumers looking for innovative, convenient, and healthy eating options that are easy to integrate into their busy lives.”

The salad kits are available in three flavors:

BBQ Ranch

The BBQ Ranch reportedly combines julienned cauliflower, red cabbage, savoy cabbage, kale, and carrots with chia seeds, roasted soy nuts, slivered almonds, and crunchy freeze-dried corn. It contains no preservatives, no meat, and is gluten-free, with a tangy BBQ Ranch dressing on top.

Super Caesar

This offers what the company calls a non-traditional take one of the top selling packaged salad kit flavors at retail. It blends nutritionally packed collard greens, Italian kale, red chard, broccoli stalk, and savoy cabbage with chia seeds, sunflower seeds, dried roasted edamame, parmesan cheese, and a classic Caesar dressing.

Yogurt Curry

According to the release, this flavor infuses a popular trend in ethnic-inspired cuisine with the nutritional benefits of hearty vegetables and plant proteins. The kit features julienned cauliflower, kale, carrots, multicolor kale, and green cabbage along with chia seeds, roasted chickpeas, slivered almonds, golden raisins, and a deliciously unique Yogurt Curry dressing.


According to the company, single-serve, ready-to-eat salads kit sales have jumped 22 percent from a year ago. With new federal dietary guidelines that recommend less meat, as well as the ongoing consumer quest for healthy meal options driving retail sales of alternative protein sources, Apio offers this as a solution to meet this demand.

The Plant Powered Protein™ salad kits join Eat Smart’s line of chef-inspired Gourmet Vegetable Salad Kits single serve salad kits, and are reportedly the first to offer a range of highly nutritious and complex vegetable blends with plant protein toppings.  

Eat Smart’s salad kits offer blends of superfoods like the Sweet Kale Vegetable Salad Kit, the Wild Greens & Quinoa Vegetable Salad Kit, and the Beets & Greens.

Apio, Inc.’s Plant Powered Protein™ salad kits will be available in June from Eat Smart®

Thu. May 21st, 2015 - by Melissa De Leon Chavez

FRESNO, CA - Volm Companies cut the ribbon on its new Distribution and Service Center on Thursday, May 14th, in Fresno, California, welcoming customers for an inside look with an open house.

President and CEO Daniel Mueller and Vice President Michael Hunter did the snipping to open the facility before welcoming everyone.

Daniel Mueller, President and CEO, Volm Companies, with guests.

Other key members of the Volm leadership team that aided the opening included:

  • John Bandsma, COO/CFO
  • Scott Erickson, Vice President of Equipment
  • Matthew Alexander, Vice President of Sales & Marketing

California account managers, field service technicians, and members of the Fresno distribution staff were also present, along with a number of ambassadors and representatives of the Fresno Area Chamber of Commerce. Also in attendance for both the ribbon-cutting and the open house was Director of Economic Development for the City of Fresno Larry Westerlund, who gave an address following Mueller’s welcome speech.

Larry Westerlund, Director of Economic Development, City of Fresno“Thank you for being here. We are excited about the opportunity to be located here and see your business grow and expand, being able to reach your customers more quickly and easily,” Westerlund said, adding that he and his team are excited for the jobs this will create and will be there for anything needed.

Marsha Richling, Marketing Coordinator, Volm CompaniesMarsha Richling, Marketing Coordinator, tells me, “The facility will not only help Volm grow, but allow us to better service our customers [such as] service their equipment, provide local delivery of parts, and packaging.”

A Volmpack weighing and bagging system was on display, as well as samples of the company’s newest packaging.

Everyone was welcome to take a tour of the 11,000 square foot facility, which is mainly composed of warehouse space with a few offices available for field service technicians, account managers, and warehouse staff.

Marsha also added that the warehouse will be stocked with supplies and packaging that is commonly used by the company’s existing customer base, with the tools and equipment parts available for field service technicians. The facility can be used as an equipment service or staging area if the need should arise, and Volm has warehouse staff that will provide local delivery via a dedicated Volm truck.

“We have a large equipment install base already in California,” Marsha noted. “Volm also has a large fresh produce customer base that it provides custom packaging for. Our customers are packing houses/facilities and growers in that region.”

Volm also played its brand video on a display, sharing the company’s history, culture, the team and people that are a part of it, and the products & manufacturing capabilities of the company.

The open house overall showcased every aspect of the company, conveying its excitement to be the newest addition to the Fresno produce community.

Thu. May 21st, 2015 - by Melissa De Leon Chavez

WASHINGTON, D.C. - The USDA has imposed sanctions on five produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA). 

The following businesses and individuals are now restricted from operating in the produce industry:

  • R & C International Inc. of Jessup, MD for failing to pay a $23,545 award in favor of a New Jersey seller. As of the issuance date of the reparation order, Steve B. Kim was listed as the officer, director, and major stockholder of the business.
  • Kenneth Mandell, doing business as Benny Mandell Produce of Ocala, FL for failing to pay a $37,913 award in favor of a Colorado seller. As of the issuance date of the reparation order, Kenneth H. Mandell was listed as the sole proprietor of the business.
  • Papita Produce Inc. of El Paso, TX for failing to pay a $72,038 award in favor of a Colorado seller. As of the issuance date of the reparation order, Daniel Canales was listed as the president of the business.
  • Eric Garzon, doing business as GSP Distributing of Los Angeles, CA for failing to pay a $7,466 award in favor of a California seller. As of the issuance date of the reparation order, Eric Garzon was listed as the sole proprietor of the business.
  • Saul Ventura, doing business as Ventura Produce of Los Angeles, CA for failing to pay a $10,910 award in favor of an Arizona seller. As of the issuance date of the reparation order, Saul C. Ventura was listed as the sole proprietor 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 principles 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 (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.

Agricultural Marketing Service

Thu. May 21st, 2015 - by Jessica Donnel

GREENSBORO, NC - The Fresh Market has announced that it will grow by a total of 19 stores in fiscal year 2015 and spend approximately $100 million to $110 million in capital expenditures.

The company says that two new stores opened in the first quarter, five to six new stores will open in the second quarter, and 11 to 12 new stores will open in the second half of the year. There will also be 10 store remodels or refreshes, with the majority completed in the first half of the year.

This revelation came along with the announcement of the company’s Q1 2015 financial results.

Sean Crane, Interim CEO, The Fresh Market

Speaking on the company’s financial results, Interim Chief Executive Officer Sean Crane, commented, “We achieved adjusted diluted earnings per share growth of 16.8%, reflecting the expense and operating improvements we have implemented in a challenging environment. These results demonstrate our ability to leverage expenses with relatively flat comparable store sales and we believe this flexibility will enable us to invest in initiatives and help increase customer frequency and attract new customers as we grow our store base and position The Fresh Market for long-term growth.”

Total net sales for the first quarter of 2015 increased 7.2% to $462.0 million for The Fresh Market, while comparable store sales decreased 0.1% to $404.2 million. The company says that winter storms forced temporary closures for a significant number of stores during the first fiscal quarter, which had an approximately 50 basis point negative impact on comparable store sales. At the same time, the company’s gross profit increased 8.4%, or $12.4 million, to $160.6 million in the first quarter of fiscal 2015, compared to the prior fiscal year period. 

Other highlights from the report include:

  • GAAP net income was $15.2 million, down from $16.6 million in Q1 2014.
  • Gross margin increased 40 basis points to 34.7% from Q1 2014.
  • Adjusted EBITDA was $57.9 million, an increase of 12.3% from Q1 2014.
  • Gross profit increased 8.4%, or $12.4 million, to $160.6 million, compared to Q1 2014.
  • Cash flow from operations were $62.6 million up from $56.2 million in Q1 2014.

“As we look at the remainder of fiscal 2015, we remain confident in our ability to drive earnings growth and generate strong cash flow,” Crane concluded. “Focusing on greater consistency of earnings, we continue to take steps across the organization to further leverage our cost structure to fund incremental investments that will support building brand awareness, enhancing our culture and improving our long-term prospects.”

Stay tuned as we continue to update you on the latest industry financial news.

The Fresh Market