OAK BROOK, IL - McDonald’s appears to be continuing to pursue possible menu changes to reach an eluding audience, and it is going where it said it wouldn't to do so.
The company is now reportedly testing items with a kale-centric splash.
As we reported recently, the company has taken a financial hit due to what CEO Steve Easterbrook called not being “on our game.” The company is now reportedly going where no one thought McDonald’s would go before -- testing out kale in prospective menu items.
McDonald’s spokeswoman Lisa McComb told Reuters that one item currently being tested in nine Southern California locations is a breakfast bowl containing egg, kale, spinach, and turkey sausage, currently priced at $4.00.
We had previously reported whispers of McDonald’s exploring kale as an aid to getting it out of its current rut, though the company had refused to comment on confirming or denying these rumors.
Now the company continues to keep its lips tightly sealed on any plans to make superfood-esque produce a permanent addition, however, despite the testing that is currently happening.
"We'll share news on our menu when the time is right," McComb told Reuters.
The company has only just begun to tap into the kale trend, and how testing these waters will fare for the traditionally burger-fueled giant will be interesting to see. So keep checking in with AndNowUKnow as we keep you up to date on what is influencing the industry.
WENATCHEE, WA - Stemilt Growers has issued a new Stemilt-O-Graphic that provides retailers insight into cherry category performance over the past two seasons.
Stemilt’s category management program, FruitTracker, looks at cherry category performance across the U.S. from early May to early September 2014, and compares it to the same timeframe the year prior. Below is a snapshot of some of the insights provided in the infographic.
- On average, cherries contributed 3.2% of total dollars to the produce department in 2014, down from 3.5% the year prior. This is due to a reduced crop out of California in 2014.
- Average weekly volume was up in 2014 at 544 lbs. per store per week.
- Cherries contributed $70 less per week on average in 2014 than in 2013, which was likely a result of a larger crop in Washington State and lower retail prices.
- Dark-sweet cherries dominated the category in 2014 with 94% of pounds sold and an average per pound retail of $2.98. On the other hand, the considerably smaller volume, yet premium-priced, Rainier cherries made up 6% of sales with an average retail price of $4.70 per pound.
For a full look at the infographic, click the image below.
Roger Pepperl, Stemilt’s Marketing Director, said in a press release that 2015 is “shaping up to be early with great volumes, leading to lots of opportunities to promote Stemilt cherries at retail from now through August.”
The early spring in the West brought on an earlier start for the cherry season, and Stemilt is trending about 10 days earlier than normal in California and Washington, according to a press release. Stemilt’s California cherries will be picked, packed, and shipped during the month of May, while harvest in Washington will begin in late May and produce large volumes in June, leading up to the July 4th holiday.
“California is up in volume considerably over 2014, yet still about half of a crop,” said Pepperl. “We’ll have two peaks there, the first running from 5/7 through the middle of the month, and then our second peak with classic, high-quality Bing cherries will begin on May 18th and run through the end of May.”
Pepperl recommends that retailers promote dark-sweet and organic dark-sweet cherries during the two weeks leading up to July 4th. Memorial Day will also be an important holiday for promoting California cherries, Pepperl added.
“With good volumes and great quality, the 2015 cherry season has lots of potential at retail,” said Pepperl. “We’re excited that our season is underway and look forward to delivering lots of great-tasting Stemilt cherries now through mid-August.”
Time to start planning for the Memorial Day and July 4th holidays!
AUSTIN, TX - Whole Foods Market has announced the launch of a new store format that targets millennial shoppers. The retailer says its yet-unnamed store will offer characteristics that millennials value, such as transparency, convenience, and lower prices.
“Today, we are excited to announce the launch of a new, uniquely-branded store concept unlike anything that currently exists in the marketplace,” said Walter Robb, Co-Chief Executive Officer of Whole Foods Market. “Offering our industry leading standards at value prices, this new format will feature a modern, streamlined design, innovative technology and a curated selection. It will deliver a convenient, transparent, and values-oriented experience geared toward millennial shoppers, while appealing to anyone looking for high-quality fresh food at great prices.”
Whole Foods says it is currently building a team that will focus exclusively on the millennial concept and is already negotiating leases. According to a press release, the plan is to begin opening these stores next year, and given the more standardized design and product assortment, the company expects a fairly rapid expansion from there.
“We believe the growth potential for this new and complementary brand to be as great as it is for our highly successful Whole Foods Market brand,” added Robb. “We look forward to sharing more details about this exciting new venture sometime before Labor Day.”
This news came along with Whole Foods’ Q2 2015 financial results, which reported a sales increase of 10% to a record $3.6 billion.
“Our results reflect another quarter of record sales and healthy returns on invested capital,” said John Mackey, Co-Founder and Co-Chief Executive Officer of Whole Foods Market. “Our Whole Foods Market brand has helped lead the shift in consciousness toward fresh, healthy foods by offering the highest quality, broadest selection, and best customer service, and we believe we can triple the number of Whole Foods Market stores in the United States. At the same time, we also see an opportunity to leverage our long history of retail innovation and extend our reach in the marketplace.”
Other highlights from the report include:
- Comparable store sales increased 3.6%
- EBITDA were $355 million, or 9.7% of sales
- Diluted earnings per share were $0.44, a 14% increase over the prior year
- Q2 cash flow from operations was $322 million
- Quarterly dividends to shareholders were $47 million
- Total cash and cash equivalents, restricted cash, and investments were $1.1 billion
- Return on invested capital increased 68 basis points to 15%
Stay tuned as AndNowUKnow continues our reports on Whole Foods' new format and all your industry financial news.
SALINAS, CA - D’Arrigo Bros. wants you to know what it is like to experience a day on the farm, creating a video from before dawn throughout the entire work day in the fields.
Panning through as the workers efficiently pick and process the produce, the company’s newly-released video entitled “A Day in the Life” shows fields of fresh broccoli rabe being wrapped up, bagged, and crated before being trucked away.
The video follows the driver to his destination, where you see stop-motion footage of the boxes being stacked and stored. Viewers are then brought inside the company’s cooler, before finally being loaded and driven away.
To watch the full video, which condenses a full day’s work into 6 minutes and 45 seconds, you can view it below.
The entire video is in dedication and celebration of the company’s 95th anniversary that we previously reported on earlier this week, and lets the day-to-day life in the D’Arrigo fields do all the talking.
SACRAMENTO, CA - The California State Water Resources Control Board has unanimously approved Governor Jerry Brown’s unprecedented water restrictions earlier today.
As we’ve previously reported, these restrictions will theoretically force California cities to limit watering on public property, encourage homeowners to forgo watering their lawns, and put restrictions on hundreds of local agencies and cities that supply water to the state’s customers.
Governor Jerry Brown’s executive order required water agencies to cut their usage by 25 percent from levels in 2013. The savings will equal to approximately 1.5 million acre-feet of water over the next nine months, or nearly as much as is currently in Lake Oroville.
“It is better to prepare now than face much more painful cuts should it not rain in the fall,” State Water Board Chairwoman Felicia Marcus said. “[This is] a collective issue that we all need to rise to in this time of emergency.
USA Today reports that the State Water Resources Board will have the authority to issue fines of up to $10,000 against cities or water districts that don't reach their targets and that violate state orders. Under the regulations approved by the board on Tuesday night, water agencies will have discretion in determining how they achieve their overall reduction targets. They will be able to choose, for instance, how much of the cutbacks are borne by commercial and industrial customers as well as by domestic customers.
Water agencies reported a total of 10,877 complaints of wasteful water use or violations of drought rules, as well as 8,762 warnings issued and 682 penalties assessed.
The panel’s final vote was 5-0 to approve the new rules, AP reports.
SACRAMENTO, CA - The California Leafy Greens Marketing Agreement (LGMA) has welcomed Ron Ratto, President of Ratto Brothers, as its newest Chairman. Several other new members and officers were also elected members during LGMA’s meeting of the Advisory Board held Friday in Salinas.
Ron Ratto was previously the association’s Vice Chairman, where he has been serving for the past three years. Victor Tognazzini, General Manager of Tri-Valley Vegetable Harvesting Inc., is the new Vice Chairman, rising from his former position as Treasurer. Outgoing Chairman Ryan Talley of Talley Farms, will remain on the LGMA Board.
Ratto’s family began growing vegetables in California over 100 years ago and today produces a number of leafy greens products including chard, mustard greens, leaf lettuces and cabbage. Ron will serve as the fourth Chairman of the LGMA.
Vice Chairman Tognazzini is a founding LGMA Board member. In addition to his farming activities, Tognazzini oversees Tri-valley Vegetable Harvesting operations and is the founder and director of Food Safety Consulting Services.
LGMA’s new Treasurer Steve Church has also been a long-time Board member. Church is Co-Founder of Church Brothers Produce and has been involved in many facets of the vegetable industry since the early 1960s.
New additions to the Board include:
- Juanita Jenny Chavez, Dole Fresh Vegetables
- Manny Alcala, Duda Company
- Gurmail Mudahar, Tanimura & Antle
- Steve Brazeel, Sunterra Produce
- Kristina Nunes, The Nunes Company
According to a press release, all new representatives are from the District One growing area, which encompasses Salinas, Watsonville, the San Joaquin Valley and Kern County.
PORTLAND, OR - Could your produce be driving itself down the road within the decade? Daimler Trucks North America says yes.
The company has unveiled the first self-driving commercial truck legally licensed to drive on U.S. highways. The aptly dubbed "Inspiration Truck" allows drivers to relinquish full control of operations, given appropriate traffic and environmental conditions, reports Time Magazine. Daimler claims these automated trucks could revamp the shipping industry, reducing accidents, road congestion, and fuel consumption.
“We’d like to take the human factor out of the equation, and make sure the system takes over to do the steering, the acceleration, and the breaking,” Head of Daimler Trucks North America, Wolfgang Bernhard, told CNBC. “First of all, these vehicles are a lot safer, they are much more attractive to drivers, and it comes with better fuel efficiency.”
The Inspiration Truck has been awarded a “NHTSA Level 3" rating, the same rating awarded to Google's self-driving car, reports tech publication ARS Technica. This means that it's fully autonomous, but drivers are still required to control the vehicle when exiting the highway, driving on local roads and docking for deliveries.
Another feature Daimler is pushing for the truck is reducing driver fatigue. According to Daimler, 90 percent of truck crashes are due to driver error, and driver fatigue plays a role in about 1/8th of those crashes. Bernhard, has been quoted as saying, ”driver drowsiness decreases by about 25 percent,” with the company’s technology in place.
“We don’t believe this system will be very expensive, it will be affordable. In 5 to 10 years from now, we will see widespread use of these systems,” continued Bernhard in his CNBC interview.
Will Daimler’s Inspiration truck be the next big thing for the produce industry? Stay tuned to AndNowUKnow as we follow this developing technology.
BRAMPTON, ON - After strategic moves such as the completed acquisition of the Shoppers Drug Mart Corporation, Loblaw Companies Limited posted a successful spike in revenue for its first quarter of the 2015 fiscal year.
"In 2015 we continue to execute against the clear strategic framework we set out a year ago," Galen G. Weston, Executive Chairman & President of Loblaw Companies Limited, said in the report. "Our entire organization is focused on delivering the best in food, the best in health and beauty, operational excellence and growth. Although the grocery industry remains highly competitive and health care reform continues to challenge our pharmacy business, we are maintaining stable business performance, gaining incremental efficiencies, delivering synergies on schedule, deleveraging the balance sheet and achieving continued earnings growth."
According to the report, Loblaw’s overall revenue for the quarter, which ended March 22, was C$10.05 billion (U.S. $8.3 billion), an almost C$3 billion (just over U.S. $2 billion) boost (37.8%) from the same time last year. The company’s net income was up 21.7% from this time in 2014, rising to C$146 million (U.S. $121 million). Its adjusted net income was up 96.7%, totalling in C$301 million (U.S. $250 million).
Same-store sales for the company’s food retail grew 4%, excluding 1.2% from gas bar and a .8% negative impact when it changed its distribution model by a tobacco supplier, as listed in the quarterly report.
Food retail same-store sales growth, with these impacts included, was 2.0%, a significant jump from 0.9% in 2014.
Financial highlights from the first quarter included:
- Consolidated sales of C$10,048 million (U.S. $8,350 million), an increase of 37.8% compared to the first quarter of 2014.
- Consolidated adjusted EBITDA(2) of C$789 million (U.S. $656 million), an increase of 63.7% compared to the first quarter of 2014.
- Retail segment sales of C$9,830 million (U.S. $8,168 million), an increase of 38.5% compared - to the first quarter of 2014, including C$2,596 million (U.S. $2156 million) of retail sales contributed by Shoppers Drug Mart.
- Financial Services revenue of C$199 million (U.S. $165 million), an increase of 10.6% compared to the first quarter of 2014.
- Choice Properties Real Estate Investment Trust’s adjusted funds from operations(2) of C$75 million (U.S. $62 million), an increase of 8.7% compared to the first quarter of 2014.
- Adjusted basic net earnings per common share(2) of $0.73, an increase of 35.2% compared to the first quarter of 2014.
- During the first quarter of 2015, the Company realized approximately C$44 million (U.S. $37 million) of net synergies.
- In the first quarter of 2015, free cash flow(2) was C$144 million (U.S. $1196 million) compared to negative free cash flow of CA $282 million (US $234 million) in the first quarter of 2014.
- During the first quarter of 2015, adjusted debt(2) increased by C$43 million (U.S. $36 million), primarily driven by normal seasonal working capital requirements. The Company remains on track to meet its debt reduction target.
- Quarterly common share dividend increase of approximately 2.0% from $0.245 per common share to $0.250 per common share.
Plans the company has for the future include growing its consolidated adjusted net earnings (2) (including synergies) relative to 2014, invest approximately C$1,200 million (U.S. $997 million) in capital expenditure programs, and remain on track with its deleveraging target with expectations to meet its target in the first quarter of 2016.
In addition, as we previously reported, Loblaw plans to open 50 new stores and invest C$1.2 billion into its Canadian business in 2015. This investment will include construction projects for dozens of new and existing stores, e-commerce expansion, and continued investment in supply chain and IT infrastructure.
Stay tuned to AndNowUKnow for the latest financial updates in the industry.
AVONDALE, PA - To-Jo Mushrooms has announced its continued support of the Produce for Kids campaign to help raise funds for local children’s organizations.
For the 13th annual campaign, To-Jo is partnering with Produce for Kids to support its relationship with ACME Markets and Feeding America. Feeding America is also Produce for Kids’s newest philanthropic partner. In addition to a direct contribution to Produce for Kids, To-Jo will be donating funds from the sale of its 8 oz. Whole and Sliced Mushrooms from April 24 to June 4 to support the cause.
“To-Jo’s culture is built around family values, by supporting Feeding America through this campaign, we can further our ongoing commitment to organizations that provide assistance directly to the communities where our products are sold. Produce for Kids does an amazing job of promoting healthy eating habits for children and we are proud to be partnering with ACME on this year’s campaign,” said Anthony D’Amico, President, To-Jo Mushrooms.
The campaign will be supported at local ACME Stores through in-store signage, online meal information, as well as at planned store demonstrations, special events, and displays featuring characters from the Cloudy with a Chance of Meatballs movie. According to a press release, recipes will include easy-to-prepare items featuring products such as To-Jo’s 8 oz. Sliced Mushrooms. In-store materials will direct shoppers to more than 150 produce centered recipes and healthy tips from real parents will be featured on the Produce for Kids website.
Over the past 12 years, Produce for Kids has raised over $5 million to support local and national charities through its retail campaigns, and the company’s new relationship with Feeding America is expected to focus its efforts even more on solving the ever growing child hunger issue.
To help gain awareness for the program, To-Jo will be co-hosting a #SimplySummer Twitter party with Produce for Kids, Well-Pict Berries, SUNSET Produce, and influential food bloggers on May 13 at 9:00 PM EST to promote the campaign and excite followers about healthy mushroom recipes and the summer grilling season.
CARPINTERIA, CA - After more than 30 years in the industry, our friend and colleague, Vincent Choate, Director of Marketing for Hollandia Produce, L.P., has announced his decision to retire, effective May 15.
“For the last 33 years I have been honored to participate in the growth and development of one of the most dynamic and progressive companies in the Ag business, Hollandia owned and operated businesses in all their different forms,” Vince wrote in a memo to the industry. “It’s been an unimaginably exciting and rewarding career and I’ve been privileged to wear many different hats.”
Vince’s enthusiasm and ability to easily adapt to any situation has given him the opportunity to learn a great deal at Hollandia, and he is quick to share how thankful he is for everything and everyone in the produce industry.
“I am and will always be thankful for the opportunities to develop and hone new skills and reach for the stars always knowing that a great team of people and the Overgaag family were right there rooting me on,” Vince continued.
Pete Overgaag, President of Hollandia Produce, L.P., had a few kind words to share about this produce maven.
“We will miss Vince both personally and professionally. Having worked side by side with him for two thirds of my life, he is like family! The company will of course feel his absence as well,” said Overgaag. “Our growth through the years has been quite an evolution, with Vince there every step of the way, making it happen. He helped drive our new initiatives, stepped up to learn what he might have been unfamiliar with and always helped mentor the rest of the team. Luckily, he will stay involved and continue to mentor our team and help with our growth in the coming years. Vince, from everyone at the company, congratulations on your retirement!”
Prior to meeting Art Overgaag, owner of Hollandia Nursery, during the early 1980s, Vince was learning about flowers and cutting meat at the Pasadena-based Preble’s Market, according to the Fresh Produce & Floral Council (FPFC). After Preble’s, Vince worked at Groen Rose Company and Yani Wholesale Florist on the LA Flower Market. He later met Art Overgaag and was offered a job in Carpinteria. The rest, as they say, is history.
In the memo, Vince says he looks forward to spending more time with his wife, Josephine, and his family, working in the garden, volunteering in the community, and contributing to the future of Hollandia Produce as the company’s Special Projects Advisor Emeritus.
AndNowUKnow congratulates Vince on his retirement, and wishes him all the best as he begins this new exciting chapter in his life.