VANCOUVER, B.C. - Village Farms International, Inc. has announced the financial results for its first quarter of the fiscal 2015 year.
According to the report, Chief Executive Officer Michael DeGiglio commented that while the first quarter of 2015 continued the quarter on quarter trend of improved market conditions over previous corresponding year’s quarterly period, the company also experienced historically low light levels throughout the entire first quarter and into the second quarter at its Texas locations.
The tomato price reportedly increased for the three months ending March 31, 2015 as a result of an increase in TOV price of 18%, as well as an increased mix of specialty tomatoes grown by the company.
“The lower light levels were the lowest since the inception of our west Texas operations in 1996,” stated in the report. “Over the first 16 weeks of the year our average light levels were 21% lower than the historical average with some weeks 45% lower. If not for the lower light levels our 2015 first quarter results would have exceeded our expectations.”
The operating results summary, according to the report, for the first quarter of 2015 were:
- (Note amounts in U.S. Dollars) Net sales increased 16% to $27.7 million for the first quarter of 2015 compared to $24.0 million for the first quarter of 2014
- EBITDA increased 96% or $1.0 million to $2.0 million in the first quarter of 2015 compared to $1.0 million in the first quarter of 2014.
- (Loss) per share of ($0.02) for the first quarter of 2015 versus ($0.01) for the first quarter of 2014
- Net (loss) increased ($0.6) million to ($0.9) million in the first quarter of 2015 compared to ($0.3) million in the first quarter of 2014.
“The low light levels continued until the end of April and will negatively impact our second quarter results,” DeGiglio continued, adding that the produce that is normally harvested in the first quarter was delayed and is now being harvested in the second.
According to the report, ample supply currently exists in the marketplace.
The company is also pleased that a US retailer has recently taken one of its new exclusive varieties national under the retailer’s private label, while other retailers are in the process of launching the same variety, as well as additional exclusive products in the coming months.
Another highlight the company noted was its first supplemental lighting investment at its Permian Basin facility. As to looking forward, DeGiglio stated that the company will remain focused on strategic developments and operational enhancements to positively impact its 2015 performance over 2014, as well as to put itself in a position to increase its market share with national retailers in both the U.S. and Canada.
LAKELAND, FL - US Foods is closing a 150,000 square foot distribution center in Lakeland, Florida, due to a “significant loss of business.”
In a memo obtained by the Lakeland Ledger, US Foods Chief Operating Officer Stuart Schuette and Keith Knight, President of the Southern Region, stated, “Lakeland has experienced a significant loss of business and can no longer sustain its current level of operational costs.”
Operations at the warehouse, which is located at 330 N. Ingraham Ave., will be moved to facilities in Tampa and Port Orange, according to the Ledger.
About 150 employees will be affected by the move, but Schuette and Knight state in the memo that “many Lakeland division employees will be provided with the opportunity to follow the Lakeland business.”
“While we cannot guarantee that everyone will be offered a position at another US Foods division, it is our goal to try hard to help everyone find a job,” Schuette and Knight said in the memo.
US Foods and Sysco are currently engaged in antitrust hearings for the proposed merger between the two foodservice companies. As we previously reported, U.S. District Judge Amit Mehta has added an extra day to the hearing that was supposed to have ended as of Wednesday, May 13, with closing arguments not to be heard until the end of the month.
US Foods Executive Vice President David Schreibman claimed that the company would not proceed if the legal delays continued, reportedly stating in federal court that it would “terminate if this court enjoins the transaction.” No further comments, however, have yet been made in regards to the delay.
CHICAGO, IL - Though hundreds from all over the United States were nominated, only a few could win. The United Fresh Produce Association has just announced the 25 recipients of its 2015 Retail Produce Manager Award.
According to a press release, the United Fresh Retail Produce Manager Award, sponsored by the Dole Food Company, honors exceptional produce managers that work every day on the front line to increase the sales and consumption of fresh fruits and vegetables.
This year’s winners included:
- Scott Baker, Harris Teeter Supermarkets, Chapel Hill, NC
- Mario Branco, Lucky Supermarkets, Oakley, CA
- Tom Dubrowski, King’s Food Markets, Cresskill, NJ
- Tony Gilliam, K-VA-T Food Stores, Inc., Weber City, VA
- Gary Gillispie, Altus AFB Commissary, Altus, OK
- Bernadine Godeck, Pick’N Save, Eagle River, WI
- Martin Gomez, Grocery Outlet, Chehalis, WA
- Esteban Gonzalez, Rouses Supermarkets, Gretna, LA
- Juan Graciano, Safeway, Inc., Redding, CA
- Tom Johnson, Hannaford Bros. Company, Taunton, MA
- Brad Johnston, Brookshire Grocery Company, Shreveport, LA
- Chuck Kauffman, Andronico's Community Markets, San Francisco, CA
- Sue Knop, Food Pride, Ida Grove, IA
- Henry Kryeski, River Valley Market, Northampton, MA
- Michelle Lee, Ball Foods, Ball, LA
- Justin Lorson, Weis Markets, Inc., Lewisburg, PA
- Anthony Machado, Raley’s Family of Fine Stores, Granite Bay, CA
- Cedric Patrick, The Kroger Company, Atlanta, GA
- Dale Schoenefeld, Hy-Vee, Inc., Watertown, SD
- AJ Sleasman, Price Chopper, Clifton Park, NY
- Ryan Tanner, Raley’s Family of Fine Stores, Reno, NV
- Ron Tarini, Big Y Foods, Inc., Brandford, CT
- Josh Teifel, Food Maxx, Concord, CA
- Kevin Thalken, Hy-Vee, Inc., Blue Springs, MO
- Mike Underwood, Coborn’s Inc., New Prague, MN
United Fresh will host a celebratory dinner in honor of these “stars of our industry,” at its 2015 conference and exposition in Chicago, Illinois, on Wednesday, June 10, from 7:30 to 9:30 p.m. at the Sheraton Chicago.
With other notable happenings, such as the Women in Produce event with featured speaker and honoree Karen Caplan, as well as numerous new product debuts and networking capabilities, this is an event you don’t want to miss. So mark your calendars for a trip to Chicago next month.
LEAMINGTON, ON - NatureFresh™ Farms is bringing greenhouse growing directly to you.
“For the last few years we have taken a micro version of our greenhouse to both trade and consumer related shows & events with great success,” Peter Quiring, President of NatureFresh™ Farms, said in a press release.
Quiring is talking about the company’s Greenhouse Education Center (GEC), a mobile, cutom-designed, interactive demonstration of how greenhouse growing works.
“We saw an opportunity to take the lead and educate people on how we grow greenhouse produce at NatureFresh™, right from seed to picking ripe fruit off the plant. What really captivates people is that when they see the greenhouse, they see how simple the growing process really is,” Quiring said.
The company unveiled the GEC to hundreds of customers in Cambridge, Ontario at a Loblaw-owned ZEHRS store, presenting a 38-foot-long produce attraction.
The GEC was customly designed and built by NatureFresh™ Farms’ greenhouse builder and sister company South Essex Fabricating. Mimicking what a greenhouse would be built with to provide as close to a hands-on experience on the road as possible, the GEC has a unique heating, venting, and irrigation system resembling that of a true greenhouse, as well as a variety of mature, live produce plants, including tomatoes, bell peppers, and cucumbers.
The system even has a live bumblebee eco-system to educate customers on how bees pollinate live plants.
“To say the unveiling at ZEHRS was a success would be an understatement,” Quiring stated in the release. “The reception we received was fantastic. Customers throughout the entire day were very keen to learn how we grow, what type of medium we used, how were the plants fed, and if the fruit they saw on the vines in front of them was actually real.”
In addition, NatureFresh displayed eatbrighter!™ themed packaging in the store for purchase.
“Our idea of taking a greenhouse in to the city (#GreenInTheCity), direct to the consumer is to not only educate but help people make informed decisions going forward,” Chris Veillon, Director of Marketing, commented additionally.
According to the company, part of its brand position for the GEC involves using the PMA endorsed eatbrighter!™ movement messaging to encourage customers of all ages to make healthier choices. The back door of the GEC trailer reportedly has a full graphic promoting eatbrighter!™ with images of different Sesame Street characters and produce. NatureFresh™ is also in the process of developing a variety of traditional & interactive materials to distribute at future events.
The GEC is set to tour throughout North America into the late fall of this year, according to the company, making key stops at select retailers, schools, and consumer events.
IDAHO FALLS, ID - Wada Farms is well known for its innovative products and sustainability initiatives. To further reinforce this, Wada has been honored with one of Grocery Headquarters’ 2015 Produce Trailblazer Awards.
Chris Wada, Director of Marketing tells me, “When it comes to words like innovation and sustainability, we recognize how tempting they can be to promote just about any company today. As a result, we are always mindful when addressing them by making sure we develop smart and creative solutions, in partnership with the customer, that align with these somewhat aspirational goals. At the end of the day it comes down to being able to provide tangible proof and being honored with this award is just that.”
It’s easy to see why the company’s tagline is “It’s Gotta be Wada.” The company is constantly reinvesting in R&D and helping to raise the bar in innovation. For Wada’s family of companies, sustainability is a comprehensive philosophy that motivates every part of its operations, including: farming, packing, sales, and transportation of fresh potato, onion, and sweet potato products.
One of the newest items to the program, the exclusive Tater Made Eco-Friendly Bag, aligns with the company’s ‘green’ ambitions and sustainability practices. With up to 25% of the packaging made using annually renewable resources, in this case reclaimed potato starch, Wada is hoping to also address the corporate sustainability goals for its customers and retail partners.
As we previously reported, Chris ensured us that, "No whole potatoes were harmed during the making of this bag." Now, how can you knock that?
The company’s objective moving forward is to increase the SKUs in the program. Currently, the packaging is offered for 5 lb. bags of Idaho and 10 lb. bags of regional Russet potatoes.
Congrats to the team at Wada Farms!
CALIFORNIA - Californians are in for an unexpected sight in the upcoming days. You guessed it, rain! As California’s drought goes on longer and longer, us locals are getting increasingly more excited every time the wet stuff hits our soil.
Luckily, a late-season storm is set to roll through California at the end of the week, bringing rain, thunderstorms, and even some snow.
“A cold, winter-like storm system… will drop southward over the next several days, bringing showers and isolated thunderstorms to the area Thursday into Friday,” says the National Weather Service Los Angeles office.
The National Weather Service forecast office in Sacramento says up to a foot of snow is possible in the Sierra Nevada area.
"Rain and snow this time of the year does not happen too often and it will be nice to see some," said AccuWeather Meteorologist Ken Clark. "Snow levels will be the lowest on Friday, between 6,000 and 6,500 feet south and 6,500 to 7,000 feet north."
While this storm alone is not expected to put a significant dent in the drought, of course, every bit helps.
According to The Washington Post, Los Angeles could receive 0.75 to 1.0 inches or so of rain this week, when the city averages only 0.25 inches for the entire month of May. After April, any substantial rainfall is somewhat unusual in California, especially down south. Los Angeles averages 0.37 inches of rain between May and August, according to The Post, so in other words, this storm could produce more rain than it usually receives in an entire summer.
As we’ve previously reported, an El Niño event has begun that could increase the odds of above normal rainfall when the wet season arrives.
Stay tuned as we follow this state's continuing tumultuous weather.
NOGALES, AZ - Vision Produce Company has announced the beginning of its La Vision Honey Dew season, with the first harvest running between May 12 and mid-June.
Sam Aguiar, Sales at Vision’s Phoenix Division said, “This grower direct program has been extremely successful because it partners us once again with Agricola Los Chacuales, who also produces our cucumbers. Their dedication to quality, performance, and food safety is top notch.”
As we’ve previously reported, Vision began its partnership with Agricola Los Chacuales for the La Vision Cucumber program.
John Caldwell, VP of Sales Arizona said, "We are excited to develop another partnership in Caborca with Agricola La Chacuales and continue our growth in the region."
Caldwell continued that Agricola Los Chacuales are a socially responsible company that offers a safe work environment, competitive wages, and supports non-profit endeavors.
According to a press release, this is the 5th season for the La Vision label out of Caborca, Mexico and the grower is anticipating heavy volume in 5ct and 6ct to start.
SINT-KATELIJNE-WAVER, BELGIUM - A final agreement has been reached regarding the merger of Greenyard Foods, UNIVEG, and Peatinvest. The three companies combined will have over €3.7 billion ($4.2 billion) in sales, creating one of the world's largest produce companies.
The Board of Directors of Greenyard Foods believes this merger will create a global player in produce capable of offering a full range of fresh, frozen, and canned products.
Upon completion of the merger, Greenyard Foods, the new parent company of the merger, will own 100% of the shares of UNIVEG and Peatinvest. In return, 25.5 million new shares of Greenyard Foods will be issued to the shareholders of UNIVEG and Peatinvest, according to a press release. Following the merger, the percentages of shares for each company will be: 42.5% for existing Greenyard Foods shareholders, 49.6% for existing UNIVEG shareholders and 7.9% for existing Peatinvest shareholders, for a total amount of shares of 44.4 million.
The transaction is still subject to regulatory approvals, EU Commission competition clearance, and approval by Greenyard Foods' shareholders. UNIVEG expects to complete the merger in the summer of 2015.
A press release also stipulates that in order to increase the limited free float after the combination, a private placement of part of the shares held by Gimv-XL and Deprez Holding is being contemplated. Deprez Holding, controlled by Hein and Veerle Deprez, remains the strategic reference shareholder for the company’s long term plans. Other key shareholders will also keep and/or strengthen their holding in the combined company to create a stable platform for continued expansion. The corporate governance structure will be streamlined and existing shareholders’ agreements will be terminated.
WASHINGTON D.C. - The Federal Trade Commission’s antitrust lawsuit to block Sysco and US Foods’ attempted merger has been extended.
According to the Wall Street Journal’s Brent Kendall, U.S. District Judge Amit Mehta has added an extra day to the hearing that was supposed to have ended yesterday, with closing arguments not to be heard until the end of the month.
To read Brent Kendall's full article, click here.
So will US Foods continue to uphold its intended agreement with Sysco? Judge Mehta is reportedly considering a preliminary block on sealing the merger, Kendall reported, which US Foods has stated it will not stick around for.
As we previously reported, US Foods Executive Vice President David Schreibman said that the company would not proceed if the legal delays continued, reportedly stating in federal court that it would “terminate if this court enjoins the transaction." The company, however, has not reportedly made any further comments in regards to today's delay.
The judge has heard both sides consecutively, beginning with the FTC presenting its case that the merger would eliminate competition in the food distribution market last week. This week’s proceedings have been dedicated to Sysco and US Foods’ side, who argue that it would actually cut prices for consumers and increase competition. Yesterday, according to the Wall Street Journal report, the defense brought market analysts to argue that the FTC’s evaluation of the foodservice market is flawed, to which the FTC will offer a rebuttal today.
Judge Mehta has tentatively scheduled closing arguments to be made on May 28th to hear both US Foods and Sysco's final defense.
The FTC announced that it plans to hold a longer in-house trial on the merger in July, Kendall reported. Whether or not that will be necessary, however, remains to be seen.
BAKERSFIELD, CA - With Ramadan just around the corner, Atlas Produce is gearing up for the holiday push with its growing presence in the date category. Shipper of 100 percent natural, California-grown dates, Atlas Produce offers a variety of date options under its popular Caramel Naturel Brand.
Ben Antongiovanni, VP of Sales, took a few minutes to chat with me about promoting the category and taking advantage of holiday sales.
“Prior to Ramadan we get out in front of our customers and encourage them to pay attention to Ramadan. The month of Ramadan runs from June 17 to July 17. Date sales spike the three weeks before the start. With a little planning, retailers will be surprised with how well dates can move for Ramadan,” Ben tells me.
For Ramadan, Atlas, and Caramel Naturel advises retailers to build large displays of Fresh Medjool dates near the Bananas or berries.
“We also like to add Date Coconut rolls and Date almonds to the display for incremental sales,” Ben notes. “Dates are not just for your grandparents anymore. More and more consumers are experimenting with great date recipes and consumption is growing. We also see strong growth with Millennials. The younger generation sees the health benefits of dates and are snacking on them more often. We also see a lot of customers adding dates to their post workout or morning smoothies.”
This year’s Medjool crop was extremely good for Atlas. Quality is still very nice and should stay that way through the summer. The company is anticipating goods volume of conventional and organic dates going into Ramadan.
For some great recipe ideas visit www.CaramelNaturel.com and don’t forget to tap into the growing demographics that are beginning to make dates a staple in their daily diets.