LYON, FRANCE - European food retail and supply chain transportation, logistics, and freight forwarding company Norbert Dentressangle has just been purchased by XPO Logistics for €3.24 billion ($3.53 billion).
"This is a defining moment in the growth of XPO. Our planned acquisition of Norbert Dentressangle will catapult XPO to a top ten global logistics company,” Bradley Jacobs, Chairman and Chief executive of XPO Logistics, told Insider Media. "It will more than triple our EBITDA to $545 million and increase our revenue to about $8.5 billion upon completion of the tender offer, nearly achieving our 2017 financial targets two years ahead of plan. The acquisition of Norbert Dentressangle is a major leap forward, but we’re still in the early innings of our long-term growth plan."
XPO Logistics is currently, according to its website, the second largest freight brokerage firm and the third largest provider of intermodal services in the U.S., with top rankings in last mile logistics for heavy goods, expedited shipments, and technology-enabled supply chain solutions. The company now apparently has its sights on growing its global base. According to the Wall Street Journal’s Maria Armental, the combined company would be the world’s second-largest freight brokerage firm by net revenue and have about $8.5 billion in annual revenue.
Currently Norbert Dentressangle is composed of more than 42,350 employees across 662 global locations, giving XPO Logistics access to one of Europe’s largest fleet networks. While the final details are subject to both U.S. and German approval, XPO is set to buy all shares owned by the Dentressangle family, which comprises a 67 percent stake at about $239 a share.
Hervé Montjotin, Chairman and Chief Executive of Norbert Dentressangle, will reportedly continue to serve as Chief Executive of XPO's European business and President of the parent company, according to Insider Media. "By joining XPO, we will become part of an organization that shares the ambition that has guided us since the creation of Norbert Dentressangle 36 years ago: to become a global partner able to effectively support our customers in the management of their supply chains,” he said, adding that he is proud to lead this growth for both companies with the rest of the current management board.
The head office will reportedly remain in Norbert Dentressangle’s current Lyon base, and XPO has also announced that it will not reduce its number of full-time employees for at least 18 months.
CINCINATTI, OH - Kroger has announced it will buy all seven Hiller's Market locations and close the Commerce Township location.
"They're going to operate six of the seven stores," Hiller's Vice President Justin Hiller said in The Detroit News. "The only store they will not operate is our location on Union Lake Road in Commerce Township because they have a brand-new store and fuel center directly across the street."
The six remaining stores will operate under the Hiller's banner until the sale is finalized in early July, when the locations will officially switch to the Kroger brand.
The companies have been in discussions about the acquisition for several months, but Hiller and Ken McClure, Consumer Communication Manager for Kroger, declined to comment on the financial terms of the sale.
"Hiller's associates are encouraged to apply for positions. Kroger is going to be hiring most of Hiller's employees,” McClure said. "Our intention is to take as many associates as possible who are a good fit and who are willing."
Kroger also partners with the same collective bargaining unit as Hiller's, according to The Detroit News, and keeping the union in place is expected to ease the transition for employees.
“We are excited to welcome Hiller’s customers into our stores and introduce them to our great people,” said Jayne Homco, President of Kroger’s Michigan division. “Hiller’s has a decades-long reputation of great customer service and outstanding selection of local and ethnic foods, and we look forward to continuing those traditions as we expand in this market.”
According to WXYZ Detroit, Hiller’s locations that are part of the sale agreement include: West Bloomfield, Ann Arbor, Northville, Plymouth, South Lyon and two stores in Commerce Township.
LEUVEN, BELGIUM - Tomra Sorting Solutions has announced that it is unveiling its Falcon Sorting Machine to the nation’s food market at this year’s United Fresh Expo.
“The Falcon facilitates the removal of most gross defects at an early stage by analyzing the biological characteristics and chlorophyll levels of each item passing along the processing line, allowing the sorters further along to work at a higher efficiency rate and boosting final product quality,” Karel Strubbe, Sales Manager for Americas and Oceania, said in a press release. “The compact design of the Falcon means it can be easily integrated into existing production lines and processors will like the easy-to-use interface, open design for cleaning and maintenance, and low cost of ownership.”
According to the company, the Falcon fulfills its intention to provide a cost-effective pre-sorting solution specifically created for the fresh cut industry. It was designed to remove unwanted material, such as rodents, bugs, plastic, wood, soil clumps, and stones, that tends to be brought onto the production line from the field.
The Belgium-based company launched its latest sorting machine onto the European market in 2014, and has reportedly secured one of its leading lettuce producers as a customer. Now it sees the United Fresh 2015 Expo as the right setup to unveil the Falcon to the U.S.
“United Fresh provides a great opportunity for us to engage directly with our customers to help us find out their specific needs,” Strubbe commented in the release. “This ensures we can work towards developing the sorting machines we have now, into what our customers require for the future. We understand that sorting food isn’t a one-size-fits-all process and that is why exhibiting at events such as United Fresh is so important. We can speak directly to customers and find out how we can tailor our approach and service to suit them.”
Stubble also added that the company’s food sorting machines are not only the most efficient way to sort products, they are also a smart investment for businesses.
United Fresh is one of the industry’s major annual events. This year it is co-located with FMI Connect 2015 and the International Floriculture Expo, bringing together retail, fresh produce, and floral leaders seeking unique products and looking to enhance valuable business relationships.
Tomra will be exhibiting at Booth 2332 from June 8 to 10, at the McCormick Place Convention Center in Chicago, where you can stop by to learn more about the Falcon and the company’s other sorting solution products.
GRAND RAPIDS, MI - SpartanNash has bought North Dakoka-based independent grocer Dan’s Supermarket. As part of the deal, SpartanNash will acquire six Dan’s stores in the Bismarck-Mandan area, following up its previous purchase of the Dickinson area stores in December 2013. Financial terms of the deal were not disclosed.
“SpartanNash is excited to welcome Dan’s Supermarket into our family,” said Dennis Eidson, SpartanNash CEO, according to the Bismarck Tribune. “We have enjoyed serving the Dickinson community and look forward to the opportunity to provide the Bismarck-Mandan area with quality products, competitive pricing, exceptional customer service, and community support.”
The acquired stores will continue to operate under the Dan’s name. SpartanNash will ship products to the Bismarck-Mandan stores via its Fargo distribution center, replacing Supervalu as the former distributor.
Dan’s Supermarket said in a statement, “SpartanNash has previously shown us in Dickinson that they will be dedicated to continuing to provide quality stores to our customers and being a good responsible local citizen.”
Following the announcement of the purchase, Terrance Rockstad, Chairman of the Board, and Dennis Bosch, CEO, have decided to retire from Dan’s Supermarket after more than 40 years to spend more time with their families.
“While I have enjoyed all my various roles and immersed myself in all the new challenges, it has been difficult to always balance my personal life with my professional life,” said Rockstad, according to the Bismarck Tribune. “My family and also my friends are very important to me, and, this year, it just seemed like the right time to spend more time with my wife, my daughter, and all my treasured friends.”
The deal is expected to be completed by early June.
SHERMAN OAKS, CA - California citrus is in demand as Springtime gets underway and Sunkist Growers is answering the request for flavor and quality with its delicious Sunkist citrus varieties. Joan Wickham, Manager, Advertising and Public Relations for Sunkist, sat down to speak with me about the current citrus season, with an emphasis on quality and varieties.
“With its distinctive sweet-tart flavor, the California Star Ruby grapefruit is in season now and is offering a unique and versatile eating experience,” Joan tells me. Star Ruby grapefruit has a thick yellow skin with a rose blush, and a bright, rich ruby flesh. Available mid-April through July, this grapefruit is an excellent source of Vitamins A and C.
Amidst challenging conditions this year, Sunkist has had a strong citrus season thus far. “Every year has its challenges, but our growers have continued to produce premium quality citrus just as they have for generations,” added Wickham.
Another springtime citrus fruit is the unique Gold Nugget variety mandarin. Sweet and easy to peel, this late-season seedless variety originally received its name from its beautiful, bright and bumpy rind.
“Gold Nugget mandarins are larger than traditional mandarins and are considered by professional taste panels to be one of the best-flavored varieties of citrus in the world,” Joan notes.
The variety is available mid-March through June, and is an excellent source of Vitamins C and A.
Stay tuned for more on the California citrus season from AndNowUKnow.
SALINAS, CA - There have been a host of challenges for vegetable growers on the West Coast during the past year, but as Mother’s Day approaches, growers tell us that increased demand and tight supplies don’t mean that the quality has been sacrificed.
Tanimura & Antle is noting strong markets across many of its vegetable categories as we move into early May, as Mike Antle, Executive Vice President, forecasts.
“The whole deal is accelerated because of the drought, shortage of labor, and the weather,” Mike tells me. The Salinas, California deal started two weeks early this year for most, because it was so warm. On lettuce, Tanimura & Antle forecasts that the company will be close to budget as next week gets underway but will be holding everyone to 6 week averages, as week 18, 19 and 20 will be very short.
“Now we are finding ourselves in this gap because of the cooler, and more to be expected, weather,” he notes. “Next week is supposed to be normal, but several items will gap as demand exceeds supplies on all our major items.” Week 18, 19 and 20 will have lighter lettuce volumes for T&A. While quality is excellent, expect higher markets.
“Volume is also at budget on celery and celery hearts, and other shippers have firmed up their pricings as volume has decreased. Paired with tight labor in Oxnard, the market will be steady to rising slightly,” he notes. “But again, you can find good quality on this harvest.”
Broccoli is also experiencing lighter volumes with an increase in demand. The company said that there is a little hollow core, but that is purely cosmetic with no discoloration.
Cauliflower markets are also continuing to stay strong and Mike adds that on consolidated items, artichokes continue to be tough to source.
In addition, John Scherpinski, Sales Director, D’Arrigo Brothers agrees that the shortages in supply are mostly caused by shippers harvesting ahead of schedule in Salinas.
“Our supplies across all commodities will continue to be short of budget. The most pressure will be on the mix leaf, iceberg lettuce, broccoli rabe, and cauliflower in the upcoming weeks. Our struggles stem from the warmer weather in the late winter/early spring, which moved supply harvest dates forward 12-14 days in most instances,” John notes.
Fennel has been an extreme example for D’Arrigo this season, and has been as much as 34 days ahead of the harvest schedule. Now with the colder nights and windy days, D’Arrigo is moving closer to being on a normal schedule.
“It’s been difficult to harvest budgeted numbers even when we have the supply, due to the labor shortage. With Mother’s Day trucks loading this weekend and Monday, it will only create more pressure to service our customer’s increasing demand for our products. Thankfully, quality across all commodities has been strong as of late,” John notes.
Stay tuned to AndNowUKnow as we follow the spring and summer season in Salinas, California.
SHORT HILLS, NJ - Paul Kneeland, Vice President of Produce/Floral/Seafood/Meat for Kings Food Markets/Balducci's, completed his two-year term as President for the Eastern Produce Council this week, along with the rest of the current officers.
Kneeland will be succeeded by 18-year-long member Vic Savanello, who is the Director of the Produce/Floral Allegiance Retail Services, according to a press release, and plays a supportive role on the Leadership Committee. He is also Chairman of the New York Produce Show and Conference Committee, co-chairs the Phil LaRocca/Pete Piastra Golf Outing, as well as the Strategic Planning Committee. Like Kneeland, Savanello will serve a two-year term in his presidency.
Other two-year term positions the council elected include:
- 1st Vice President - Marianne Santo of Wakefern Food Corp.
- 2nd Vice President - Greg Veneziano of Bozzuto's, Inc.
- Secretary - Rob Goldstein of Genpro, Inc.
- Treasurer - Sal Zacchia of RDD Associates
Marc Goldman of Morton Williams and Chris Keetch of Ahold also joined as directors for Eastern Produce Council, which will add a stronger retail presence, according to the release.
The council reportedly appreciated Kneeland's leadership and vision over the last two years, thanking him for his time served as President.
NEWARK, DE - Together with Costco, Wal-Mart, and 19 other organizations, the Produce Marketing Association (PMA) has written a letter to congressional leaders urging them to increase the U.S. Food and Drug Administration’s (FDA) food safety budget for Food Safety Modernization Act implementation.
The letter, which can be read in full by clicking here, expresses support for FDA’s $109.5 million FSMA funding request. The letter states, “FSMA places prevention as the cornerstone of our nation’s food safety strategy. It includes new requirements for manufacturers and provides the FDA with the authorities it needs to adequately fulfill its food safety mission. This new focus on prevention and expanded authority as granted by Congress necessitates an update and increase to FDA’s food safety tools, from regulations to infrastructure.”
The letter was addressed to the House Committee on Appropriations Chairman Harold Rogers and Ranking Member Nita M. Lowey, and the Senate Committee on Appropriations Chairman Thad Cochran and Ranking Member Barbara A. Mikulski, according to a PMA press release.
“FDA and stakeholders have put a great deal of time, effort, and thought into development of regulations that protect public health and assure confidence in our nation’s food supply,” said Dr. Jim Gorny, Vice President of Food Safety and Technology for PMA. “Those regulations – and consumer safety – are critically dependent on a properly funded implementation plan.”
FDA has requested funding specifically to address these priorities:
- Inspection modernization and training;
- Advancing the National Integrated Food Safety System,
- Education and technical assistance for industry;
- Technical staffing and guidance development at FDA;
- Building the new import safety system; and
- Risk analytics and evaluation.
“In the near future we’ll be sharing our thoughts on funding allocations and prioritization to support FSMA implementation based on the needs of the produce industry,” added Gorny.
The letter concludes with a statement noting that with the $109.5 million in new budget authority, all 21 organizations that have signed the letter support congressional oversight to ensure those investments are implemented effectively and to make certain the agency’s regulatory implementation of FSMA is consistent with what the law requires, and what Congress intended in adopting the law.
VIENNA, VA - The USDA is making its largest apple purchase in history to support its supplies for nutrition programs.
The bonus buy includes 34.9 million pounds of fresh apples and 16.1 million pounds of processed apple products for approximately $18.3 million.
“Coming on the heels of what was likely the largest crop in US history, this USDA purchase is welcome news and we thank the department for it,” said Jim Bair, US Apple Association President & CEO. “Adding this action to USDA’s recent success in opening the China market for US apples, it is an understatement to say we are grateful.”
As we previously reported, opening the Chinese market to US apples is expected to increase fresh apple exports from the United States by approximately 10 percent.
Bair also thanked Mark Seetin, USApple’s Director of Regulatory and Industry Affairs for his initiative and hard work on this bonus buy.
The bonus buy will be used to supplement USDA’s supply for nutrition programs, such as the school lunch program, according to a USApple press release.
The USDA’s Agricultural Marketing Service is expected to make an announcement soliciting offers to sell within a month.
KINGSVILLE, ON - During the Spring and Summer months, consumers look to bright, refreshing fruit as one of their go-to produce purchases for everything from dessert to snacking. At the top of that list, is berries…and in this case, strawberries.
Joe Spano, VP of Sales and Marketing for Mucci Farms, joined me to discuss the company's new Smuccies strawberry program and what this soft roll-out has in store.
“Smuccies are the newest launch in our assortment of products for 2015… we experimented last fall with an initial planting and have gone into commercial distribution this spring with a handful of our closest retail partners,” Joe tells me.
Volume for Mucci’s strawberry program is still considerably low as the company moves into this next phase of growth, with approximately 600-700 retail ready case packs available per week.
“But, quality has been beyond expectations,” he notes. “The Smuccies program is still very new to us….we believe we can stay in full production until late July, then back in for October harvest to support our retail partners in their most unpredictable time of the year.”
When I ask Joe what went into building this program, he laughs, “A leap of faith. It has been topic of discussion for many years and the timing just seemed right.”
This program expansion was a full collaboration with growers, marketers and retailers to help support a very delicate item. The right varieties, the right environment and the right team will help make Smuccies a successful program, Joe hopes.
In reference to the entire Mucci portfolio, Joe tells me that he believes Mucci offers one of the most well rounded assortment of products in the Industry.
“From our claim to fame Beefsteak tomatoes and wonderful Bell peppers… Mucci Farms has not gone more than a year without introducing a new item, a new package, and or a new marketing strategy to our retail partners and the trade,” Joe tells me. “It is our expectation that if this first round of commercial introduction of Canadian greenhouse strawberries is successful…we will have two more very flavorful fruits ready to launch next. Our best work is yet to come.”
Stay tuned to AndNowUKnow as we follow the evolving Mucci Farms program.