KANSAS CITY, KS - Associated Wholesale Grocers has announced Bob Pickerill as the company’s new SVP & Division Manager for the Kansas City Division.
Pickerill began his career with AWG in the Springfield Division as the Director of Bakery, but was quickly given responsibility for deli as well. Pickerill has had many roles at AWG, including Member Services Director, Vice President of Merchandising, and most recently SVP and Division Manager in Fort Worth, TX.
To fill Pickerill’s former position, the company has promoted Linda Lawson to SVP & Division Manager for the Fort Worth Division. Lawson has worked at AWG for 20 years, and began her career in the Oklahoma City Division, working her way up through the organization. Prior to joining AWG, Lawson held leadership roles for both SuperValu and Kroger in store operations, store management, and deli/bakery operations.
Tye Anthony was also recently promoted to VP Sales & Marketing for the Fort Worth Division. According to a press release, Anthony has been with AWG in Nashville since August of 2013 as VP of Sales & Merchandising. Anthony has worked in the food industry for over 25 years, holding leadership roles at retail for Randalls/Tom Thumb, Safeway, BI-LO, and Ahold USA. Anthony has also worked as an in-house consultant at Family Dollar.
And to fill Anthony’s position, Terry Roberts has been promoted to VP Sales & Merchandising for the Nashville Division. Roberts brings 40 years of grocery experience, and has been with AWG since 2003, holding a number of positions including Group Sales Manager, Senior Group Sales Manager, Grocery Merchandising Director, and most recently Director of Fresh Sales. Prior to joining AWG, Roberts worked with Malone & Hyde and Fleming in various leadership roles.
WASHINGTON, D.C. - The Federal Aviation Administration has given the first ever go ahead for an aerial drone to spray crops.
According to the Tech Times, the Yamaha Motor Corporation’s 207-pound RMAX crop dusting drone has successfully obtained consent.
While drones were previously allowed to fly over to provide farmers with pictures of areas that would need to be sprayed, they were never previously allowed to carry and execute a load of pesticides or even fertilizer. Until now.
“The FAA finds that a grant of exemption is in the public interest,” the administration said in a 23 page report. “The enhanced safety achieved using a UA (Unmanned Aircraft) with the specifications described by the petitioner and carrying no passengers or crew, rather than a manned aircraft of significantly greater proportions, carrying crew in addition to flammable fuel, gives the FAA good cause to find that the UAS operation enabled by this exemption is in the public interest.”
To see Yamaha’s RMAX in action, you can view the video from Tech Times below.
The green light does come with stipulations, however. According to the Tech Times report, the news came with 28 conditions the FAA imposed, including that the RMAX cannot fly higher than 400 feet off the ground and cannot fly more than 45 miles per hour. It was also expressly declared that this approval is only for the RMAX, and no other drones at this time. But it is still a start to a new approach in crop dusting.
“I think this is a great advance for the drone industry and for people who have invested and worked with these, waiting for the day they would be approved for commercial use,” said experienced drone owner and flyer Gary Clevenger, Managing Member and Partner for Freska Produce International. “This will allow farmers to apply insecticides in hard-to-reach places effectively and cost efficiently. This is just the beginning of the possibilities of what drones can do for businesses across the world, both efficiently and effectively, [providing] low cost alternatives for a wide array of things from applying pest control, to mapping and monitoring farm watering activity, and more.”
Per the FAA’s restrictions, the drone will have to remain in the direct line of sight of whoever is operating it, as well as a secondary person, whenever it is in use.
AUSTIN, TX - As we reported last week, Whole Foods has announced a new store banner that is targeted towards millennial shoppers.
"Clearly this is where the customer is and we are trying to serve the customer," said Whole Foods Co-CEO Walter Robb. "The younger-generation customer continues to look for new choices. You see lots of new formats coming into the market."
This however, has many analysts and investors concerned.
"The new format has caused some investors concern that maybe this is a sign that we’re heading down the price and margins curve for the industry, and maybe there is some concern that this could be some distraction for management that should be focusing on improving the same store sales at existing stores," says Jeffries Analyst Mark Wiltamuth.
Whole Foods’ goal of expanding to 1,200 stores from the current 400, especially in competition with the new, smaller-format stores, "seems like a big stretch," said Barclays Capital Analyst Meredith Adler, according to Market Watch.
While investors have expressed concerns about the launch of this new chain that can be perceived as a decline in Whole Foods' faith in its business model, Robb describes the move as an offensive one, which will give the company "another growth vehicle to take Whole Foods into the future."
The new chain will complement Whole Foods' current one, Robb said.
"We will be able to leverage the common structure, but also be able to create new growth for the company in both directions," added Robb.
Adler said she has yet to see any food retailer successfully create an entirely new and different format. She believes that multiple formats only work if retailers acquire a new chain and its management team. Many retailers have tried discount formats, including Kroger, but she said that Kroger only found success in buying Food 4 Less and keeping its management in place, Market Watch reports. She also pointed to Supervalu’s purchase of Save-a-Lot stores.
"We see this as a capitulation," continued Adler. “Management has pointed out [that] the current concept can never offer consumers a true value experience.”
It’s not all bad news from investors, however, some believe there is room for cheaper organic formats.
"We have a broadening out of demand occurring, if you look at whats happening in the marketplace today, its looking like a democratization of organics,” Wiltamuth said. “As the price is coming down, we’re seeing the middle class and even lower income consumers start to come into this base, and Whole Foods can look across and see Sprouts and Trader Joe's and others playing this low price card and I think this is a way that they can get after that opportunity."
Stay tuned to AndNowUKnow for continued updates on Whole Foods Market’s new format.
CALIFORNIA - With California’s winter weather being one of the warmest on recent record this year, the state’s stone fruit volumes have been fluctuating more than average.
I spoke with Jeannine Martin, Director of Sales for Giumarra Reedley, about dealing with the weather and what’s next for California stone fruit.
“As the weather forecasters say here in California, our winter was our spring and our spring is our summer. We had a winter that did not give us enough chill/dormancy hours, and possibly the least amount of chill hours ever recorded,” Martin told me. “Most varieties of stone fruit need accumulated chill hours so the tree can do its job and produce fruit.”
I also spoke with Homegrown Organic Farms’ Marketing Manager, Cherie France. Homegrown’s crops have also been affected by the above-average heat, with start dates 10 days earlier and lighter volumes for most varieties.
Despite the lack of cold weather, it's too early to tell exactly how big of an impact it will have on the stone fruit market.
This has been a difficult and interesting time to grow in California, with both warmer weather and severe drought conditions threatening most of the state’s stone fruit companies. Despite these difficulties, both Giumarra and Homegrown have been making efforts to increase sustainability. Giumarra has been a huge propagator sustainable water usage, while Homegrown has its new “Committed to Caring” program.
“We recently launched our new sustainability program called Committed to Caring that we’re using to showcase the company’s efforts in caring for the land, the environment, and our communities,” France tells me. “We offer a full line of resources to help retailers merchandise and promote Homegrown products including grower photos and bios. Consumers love to know where their food is coming from and who their farmer is so we’ve recently included a QR code on our packaging that links with our grower stories on our website.”
Homegrown will also be adding a 4ct Peach, 4ct Nectarine, and 1lb Plum clamshells that allow for merchandising displays while also giving consumers complete viewability of the fruit. The company says that customers can expect a steady supply of premium organic peaches, nectarines, plums, and pluots available from May through the middle of August.
Also new in California stone fruit is the implementation of the new DulceVida Premium Proprietary line. The DulceVida program includes Red Apricots, White Nectarines and Yellow Nectarines with characteristics that are fragrant, rich and intensely sweet. Giumarra is the exclusive grower for the conventional line of DulceVida, and have sublicensed Homegrown to grow the organic line.
This will be the first year of commercial production for Giumarra’s conventional line, while Homegrown expects to have the organic line ready for production in 2016.
Martin explains, “DulceVida translates to “Sweet Life,” emphasizing the rich combination of superb tree-ripened flavor and European heritage. This new proprietary program is the result of an exclusive license with a 4th generation French breeder consortium. Over the last 10 years, these varieties have been extensively tested in France, as well as at our test orchards in California.”
Stay tuned to AndNowUKnow as we continue to track the season.
YAKIMA, WA - Domex Superfresh Growers® is looking forward to a sweet Washington State apricot crop this season. Weather has been ideal for growing the tree ripened fruit, the company says. Above average sizing and flavor is expected, and the industry is estimating approximately 8,000 tons, a 10% from last year.
“Domex Superfresh Apricots will begin shipping around the 7th or 8th of June through the middle of July. This start is a full two weeks earlier than last year. Peak volume should occur around the 19th or 20th with Organic Apricots available around June 12th. Domex Superfresh volume for the season is estimated at 15% of the industry’s estimated 800,000 boxes,” stated Howard Nager, Vice President of Marketing for Domex Superfresh Growers. “We are also excited about having promotable volumes for the 4th of July holiday!”
According to a press release, Domex Superfresh Growers is the only company offering volume and shipping from both the Yakima and Wenatchee areas. Domex will ship a variety of sizes in its Summerfresh Fruit® boxes including a 15-pound Panta pack, 24-pound volume fill cases and 1.6-pound zippered poly bags.
“We are also ramping up our consumer communication on Apricots this year, and will be featuring fun and engaging graphics,” included Nager. “We have created interesting and informative social media content that makes engagement between retailers and consumers a breeze.”
Nager ended that apricots are ideal for baking, making preserves or eaten on their own. Domex says it is looking forward to sharing the great taste of Washington apricots this season.
MT. LAUREL, NJ – Sbrocco International, Inc. has signed with Elmo, Oscar, and their friends for its apples and pears, joining into the kid campaign sweeping through produce.
“The decision to join the eat brighter! program was an easy one,” Christina Regan, Marketing Manager for Sbrocco, said in a press release. “We’re thrilled to be part of this movement, which we truly believe has the potential to increase consumption of fresh fruits and veggies among children. We’re very excited to be able to use the loveable Sesame Street characters on our apple and pear bags to make healthy eating fun for kids.”
The New Jersey-based importer of fresh fruits joins the campaign that features support from First Lady Michelle Obama, not to mention television favorites like Big Bird, the Cookie Monster, and more. The objective of the movement is to make produce consumption fun and appealing for children ranging from ages 2 to 5.
The company will begin selling its apple and pear bags this month featuring favorite Sesame Street characters.
SALINAS, CA - It is continuing to be a tight lettuce market as we move further into May with a gap looming for some, if not already here for most. With an increased demand for high-quality lettuce and leafy greens, we could be in for a rollercoaster ride of price fluctuations as we continue through the month of May.
Martin Jefferson, Production Manager, for Duda Farm Fresh Foods, tells me that, “While volumes may be lighter, and the gap is here, if not around the corner, the in-field quality across all commodities is excellent. There are little bits of sunburn caused by the short heat waves this spring, but not enough to be significant.”
On the gap front, Duda does its best to plan for the anticipated shortages with a number of processes on the harvest end. Whether it's evolving the fields to push some of the harvest further down the line or identify the fields that they can begin harvesting earlier to help close the gap, the company is always working to bring a quality supply to customers.
Labor has also been a challenge, Martin notes. “While the quality has been great, we have had to bypass small amounts of product for the sake of optimizing our labor resources and maintaining full, productive crews in order to reduce the potential of a labor shortage for ourselves.”
Caitlin Antle Wilson, Sales and Marketing Director for Tanimura & Antle, gave me a read on the industry this week, and what we can expect in the near future. “The gap is here and lettuce will be tight for 2-3 weeks,” she said.
“The East Coast local deal, mainly in New Jersey for Boston Lettuce as an example, will not be coming on for about two to three more weeks. The region usually comes on in the early to mid part of May. So, with that being said, the local deal that usually lets us catch our breath will be late this year. This could lead to prices that will stay high because of demand,” Caitlin continues.
In addition, Boston Lettuce seems to be incredibly tight as the item is trending more this year on the East Coast, in the New York area in particular. Also, it has been a colder week in Salinas, California, where many vegetable growers have their operations, slowing down growth.
Coastline’s Mark McBride tells me that the unusually mild, dry conditions that occurred during January, February & early March brought all of the company’s commodities on ahead of schedule- by about 10-21 days.
“After our warm late-winter temps, we are experiencing a much cooler than normal weather pattern, this has slowed growth of upcoming fields and helped to create a shortage of several items including: green & red leaf lettuces, celery & cauliflower. We anticipate lighter volume on head lettuce & broccoli in the next couple weeks as well so stay tuned as the tight market continues,” Mark says.
Stay tuned to AndNowUKnow as we follow the lettuce market in May, as well as the many other hot categories that keep us on our toes.
MISSISSAUGA, ON - Wal-Mart Canada has bought 13 former Target spaces, with expectations to invest C$350 million ($289 million) total to make them operable under the Wal-Mart Canada banner.
“Wal-Mart is committed to the Canadian market, and this agreement helps us accelerate our growth plans,” Dirk Van den Berghe, Wal-Mart Canada Chief Executive, said in a press release.
Wal-Mart paid Target C$165 million ($136 million) for the 12 store leases it bought, as well as one owned property, according to the release, which will add about 1.6 million feet of retail space to Wal-Mart’s presence in Canada.
“The 13 stores acquired are well situated, and we are excited to bring Wal-Mart’s successful Supercentre offer to customers in these markets,” Van den Berghe continued. “We have served millions of loyal customers, and look forward to continuing to serve them through our stores and growing e-commerce business.”
As we previously reported, Target had put up 55 store leases and 19 spaces for office and warehouse use and had released a small list of interested buyers. Wal-Mart had been at the top of that list of inquirers.
The transactions between the companies are still subject to the approval of the court, reportedly in accordance with Target Canada's Companies' Creditors Arrangement Act (CCA) proceedings, as well as other customary conditions.
BASEL, SWITZERLAND - Syngenta AG has rejected a takeover offer from U.S. rival Monsanto Co. Syngenta says the offer, valued at roughly $45 billion, undervalues the Swiss agrochemical giant.
"The offer fundamentally undervalues Syngenta's prospects and underestimates the significant execution risks, including regulatory and public scrutiny at multiple levels in many countries," Syngenta said in a statement.
“Monsanto, which initially approached Syngenta last year, has long been interested in its Swiss rival and the potential to base itself in Switzerland and benefit from lower taxes,” a source told Reuters.
Merging Monsanto, the world’s largest seller of agricultural seeds, and Syngenta, the leading pesticide marketer in terms of sales, would create a huge force in the Ag industry. Combined, the two companies have have about 45 percent of the global market for seeds, according to The Wall Street Journal. The annual revenue of the two companies is around $31 billion.
The Wall Street Journal reports that Monsanto had believed that its 45 percent cash offer would provide “a very attractive premium” for Syngenta shareholders.
“Monsanto, in conjunction with its financial and legal advisors, has devoted significant time and resources to analyzing a potential combination of Syngenta and Monsanto and is confident in its ability to obtain all necessary regulatory approvals,” the company said.
Many investors warn that any merger of the two companies may be challenged by antitrust regulators, primarily in North America. According to Bloomberg Business, Monsanto’s dominance in the seed industry has been the subject of U.S. antitrust probes at the federal and state levels.
Reuters reports that Syngenta shares rose 17 percent to 390 Swiss francs by 0715 GMT on Friday after Monsanto’s bid approach was confirmed, according to Reuters.
PHILADELPHIA, PA - The Philadelphia Wholesale Produce Market hosted 250 members of the produce industry as they attended the Eastern Produce Council’s Cinco de Mayo dinner meeting.
New Eastern Produce Council (EPC) President Vic Savanello addressed all those in attendance after Philadelphia symbol the Ferko String Band opened up the festivities, according to a press release.
Activities for the evening included a cocktail reception and dinner, a silent auction sponsored by the council’s Women’s Leadership Committee and a donation of $2,500 from the EPC to Philadelphia’s largest hunger relief organization- Philabundance.
Sponsors that helped make the evening possible included:
- Avocados from Mexico
- Dole
- John Vena, Inc.
- West Pak Avocado, Inc.
- USA Pears
- United Savings Bank of Philadelphia
How did you celebrate your Cinco de Mayo? Tell ANUK by emailing us at [email protected], or post a picture on Instagram and tag @andnowuknow.