PHOENIX, AZ - Sprouts could see upwards of around 1,200 U.S. stores in the next decade and a half, if its growth plans stay on course for the natural foods-retailer. Currently at about 170 stores, the company has begun targeting more traditional supermarkets such as Kroger Wal-Mart, by rivaling them on their produce prices by as much as 25%, according to Bloomberg. Natural-food stores that include Whole Foods and Trader Joe’s have also come within its competitive circle.
A Bloomberg Industries study of 148 brand-name items reports that Sprouts is undercutting Whole Foods’ prices by nearly 13%. The chain has taken market share from Whole Foods, Kroger and Wal-Mart since 2011, according to a New York-based ITG Investment Research report last month.
Sprouts revenue jumped 26 percent to $722.6 million in the first quarter as it opened new locations and same-store sales gained about 13 percent.
In regards to the 1,200 store mark, CEO Doug Sanders, noted in an interview at an Atlanta-area store that was slated to open this week, “That was the low end, the most conservative estimate.” He continued, “We’re able to appeal to a much broader customer.”
Sprouts may increase its store count by as much as 14% yearly, which means it would reach the 1,200 stores it forecast within about 15 years. The CEO noted, expanding to as many as 1,500 stores isn’t out of the question in that time and that growth will come from building stores rather than through takeovers.
“We just don’t have anything under review from an acquisition standpoint,” he said. “When you think about our box size and some of the industries that are in transition right now, whether its books or office supplies or electronics, we fit in a lot of those boxes, so I think there is going to be a lot of opportunity for us to expand organically.”
Sanders attributes the company’s ability to open more stores in a market than your typical natural-foods store due to the retailer’s broad appeal. More grocers, like Wal-Mart and Kroger, are selling organic and natural goods as Americans increasingly seek healthier food.
It's defintely an interesting time to be a consumer and a reporter.
Clear Lam Packaging - Growth in fresh-cut, ready-to-eat produce is fueling demand for new packaging innovations that enhance produce protection, extend shelf life and promote healthy eating through better merchandising. Here are a few of the new packaging technologies from Clear Lam Packaging, Inc.
• Flexible, stackable and reclosable, the PrimaPakTM Packaging launched with the first commercial applications in North America last fall. Clear Lam is highlighting new applications for the produce aisle, along with packaging closures and benefits for preserving freshness and extending shelf life. The revolutionary PrimaPakTM Packaging System replaces rigid trays, cans, bottles, jars and select flexible packaging. Produced on proprietary vertical form-fill-seal (VFFS) equipment from custom rollstock, the PrimaPakTM technology improves the package cube 30 percent or more compared to PET jars. Lightweight, the PrimaPakTM package uses less plastic than traditional rigid packaging. Each benefit offers opportunities for cost savings and sustainability improvements throughout the supply chain. Because the PrimaPakTM package merchandises on six sides, it offers improved brand visibility and marketing impact. Applications include sliced fruits and vegetables.
• Peel and ReSeal Lidding Film developed by Clear Lam eliminates the need for pre-formed rigid plastic lids and shrink bands resulting in a 30 percent or more weight savings. The film is hermetically sealed to a tray allowing for the use of modified atmosphere to help extend shelf life. By eliminating pre-forms and shrink bands from the supply chain, the Peel and ReSeal Lidding technology helps reduce truck shipments, improving fuel consumption and reducing greenhouse gas emissions. Recent applications include award winning Country Fresh Sliced Apple Trays.
• Snap Apart Multipack Packaging – To meet growing demand from health-conscious consumers, Clear Lam produces rigid rollstock for a snap-apart package that provides portion control for cut fruits and vegetables served in multi-packs. Produced in Clear Lam’s Forming Films division, the new rollstock is designed for horizontal form-fill-seal (FFS) equipment and can be produced with traditional petroleum-based resin or with bio-based materials. Clear Lam enhances the rollstock with compounded additives produced by its CL Polymers Division to achieve consistent snap-apart strength. Clear Lam works closely with processors, equipment manufacturers and suppliers to ensure the unique needs of each application are met.
Clear Lam Packaging, Inc. is a developer and manufacturer of engineered flexible and rigid packaging materials used for a variety of foods, industrial goods and personal health care products. Founded in 1969, Clear Lam operates three manufacturing plants in the United States and China and employs over 500 people. Vertically integrated from design to manufacturing, Clear Lam specializes in innovative, printed films and rigid rollstock. Clear Lam is focused on developing packaging that meets consumer needs and that supports its customers’ long-term sustainability initiatives.
TAMPA, FL – IFCO had reached a milestone this fiscal year; 1 billion annual reusable plastic container (RPC) shipments from producers to retail locations throughout the world. This number represents more than 20 years of growth for IFCO RPCs.
“We are excited to share this momentous achievement with our customers, partners and employees,” said Wolfgang Orgeldinger, CEO of IFCO, “Our growth is a testament to the value IFCO RPCs offer the fresh supply chain in each of IFCO’s 29 countries of operation.”
RPCs help reduce environmental impact, food waste, and supply chain costs for retailers and producers across the world. The yearly environmental impact of shipping 1 billion RPCs instead of cardboard is equal to the elimination of CO2 emissions of nearly 75,000 vehicles, the solid waste generated by over 400,000 people and the water consumed by nearly 600,000 people, according to a press release.
IFCO owns and operates its RPC business in North America, South America, Europe, and Africa, and operates via joint venture in Asia.
Congratulations on reaching this milestone IFCO!
WASHINGTON, DC - The USDA’s Animal and Plant Health Inspection Service (APHIS) is announcing proposed changes to fees charged to recoup the costs of conducting agricultural quarantine inspections (AQI) at U.S. ports of entry.
APHIS is proposing the adjustment of hourly rates charged for employees performing work associated with AQI activities on Sundays, holidays or other after-hours period. This marks the first proposed change in overtime rates since 2002. These rates would be raised to match the anticipated costs of providing services through 2018, according to a press release.
The proposed AQI fee structure will also adjust current rates to ensure that no one party is paying more than the costs of the services they incur. Since this proposal aligns fees with actual costs, some fees will go down while others go up.
APHIS is proposing to lower fees for international air passengers from $5 to $4 and railroad cars from $7.75 to $2. It is also proposing to raise fees for inspections of commercial aircraft from $70.75 to $225, commercial maritime cargo vessels from $496 to $825, commercial trucks with a transponder from $105 to $320 a year and commercial trucks without a transponder from $5.25 to $8 per crossing, according to a press release.
APHIS is also proposing to add a $2 fee per sea passenger to make up costs associated with inspecting cruise vessels and passenger baggage as well as adding a $375 fee to recover the costs of services for monitoring the application of or providing treatments to imported cargo to minimize risks.
APHIS has been using Department of Homeland Security funds to make up the difference in cost in services, and these fees adjustments are expected to fully fund the actual costs of running the AQI program.
The AQI program is responsible for inspections conducted by the Department of Homeland Security’s U.S. Customs and Border Protection of conveyances, cargo and passenger baggage entering the country as well as APHIS’ analytical and scientific work to track pests overseas, focus inspections at ports of entry and develop the import regulations that protect U.S. animal and plant health from foreign pests.
This proposal will be available for a 60-day comment period, and APHIS will consider all comments as it works to finalize the changes to the fees.
Recently, Western Growers, along with a number of statewide and national agricultural employers and organizations, signed on to an amicus curiae (friend of the court) brief in support of Peri & Sons Farms’ Petition for Writ of Certiorari (request for review) to the U.S. Supreme Court.
The petition came after an adverse ruling in the Ninth Circuit Court of Appeals. The petition asked the high court to consider the following two issues, according to Western Growers:
1 - whether H-2A employers are responsible for reimbursing foreign workers’ pre-employment travel and immigration expenses during the first work week as required by the Fair Labor Standards Act, or after the employee has completed 50 percent of the contract, as provided by the H-2A regulations; and …
2 - whether deference is owed to the Department of Labor’s (DOL) interpretation of the Fair Labor Standards Act (FLSA) and its regulations.
Should you have further questions on the issue, please feel free to contact: Jason Resnick Vice President / General Counsel
On June 16, 2014, the Supreme Court denied Peri & Sons Farms’ petition for certiori. This ruling means that the Ninth Circuit Court of Appeals’ decision requiring reimbursement of pre-employment travel and immigration expenses during the first work week will stand.
This foreign labor case has a ripple effect beyond the H-2A employer community. The Ninth Circuit concluded that it was required to defer to the DOL’s interpretation of an ambiguous regulation, and that interpretation decided the case. Western Growers notes that, unfortunately after the Supreme Court’s denial of review, such deference to an executive agency’s interpretation of its own regulations remains alive and well.
With this decision in place, all employers that utilize H-2A foreign workers should review and revise their policies to ensure that workers are reimbursed for pre-employment travel and immigration expenses during the first work week.
Stay tuned as we follow the H-2A conversation.
SALINAS, CA - Mann Packing is releasing a new proprietary vegetable kit, Snap Pea Sensations™, in response to the popularity of their complete kits and the strong growth of their Sugar Snap Pea sales.
“Mann’s snap peas outsell the competitors’ 5:1; we know consumers love them and we also know time-starved parents are looking for creative and healthy meal solutions that are quick and easy to prepare for their families,” said Kim St George, Director of Marketing and Innovation.
“We’re very excited to roll out these first-of-their-kind snap pea kits,” St George said. Mann produced a couple of their own videos demonstrating the easy prep involved to produce a Snap Pea “Sensations” cold salad or sautéed dish. Check out the videos below!
“There are no other vegetable kits on the market with this versatility.” Mann's kits can be prepared as either part of a cold salad, a skillet sauté, an entree, or even as a side dish.
The 11-ounce Snap Pea Sensations kits are available in two flavors—Asian Sesame and Mediterranean Style. The Asian Sesame kit includes sesame seeds and an Asian-style dressing; the Mediterranean kit includes grated Parmesan cheese and a basil garlic-infused olive oil dressing. The kits will have a 16-day shelf life and will carry a suggested retail price between $3.99 and $4.99, according to a press release.
Mann Packing in in the process of a full rollout in the U.S. and Canada by July 2014.
WASHINGTON, DC – The USDA’s Agricultural Marketing Service is hosting a free Webinar called “An Introduction to the Perishable Agricultural Commodities Act (PACA).” The webinar will take place Thursday, June 26th from 2:00-3:00 p.m. Eastern Time.
Karla Whalen, Director of the PACA Division, will be the speaker for this webinar. Whalen will introduce the PACA and give practical tips on how it can help produce companies resolve business challenges like the interpretation of USDA inspection certificates and protecting their businesses if customers do not pay or file for bankruptcy, according to a press release.
After the presentation, an interactive question and answer session will end the webinar. This will be the time to address any remaining questions about PACA.
Since space is limited, the USDA asks that interested parties register to participate via the USDA Webex website.
As competition in the retail sector continues to heat up, companies are opting for price comparisons to stay on top of the game. Costco and Wal-Mart are among six major retailers that will add information to websites and mobile applications under an agreement with New York’s attorney general that will allow consumers to compare prices by unit, according to Bloomberg.
Other retailers getting on board are Walgreens, FreshDirect, CVS , and Drugstore.com. These companies agreed to put the unit prices on their web-based shopping platforms within nine months, New York Attorney General Eric T. Schneiderman noted.
Costco and Wal-Mart said they will provide unit pricing information on their websites and mobile stores throughout the U.S. by the end of this year, while the other stores will provide unit pricing online by March 2015.
“As the Internet becomes the shopping mall of the 21st century, we need to ensure that consumers have the same robust protections online that they do in brick-and-mortar stores,” said Schneiderman.
On another note, Amazon.com Inc. declined to participate in New York’s initiative. The company has unit pricing on some pages and doesn’t provide the information uniformly across its platforms, according to Schneiderman’s office.
According to the report, Amazon “claims it will extend unit pricing to its subsidiary Quidsi, which operates online stores like Soap.com, but refused to commit to that in a written agreement.”
The state’s unit pricing statute requires large retail stores to clearly display the price per unit of measurement for most types of food, cleaning and paper products, toiletries, pet food and over-the-counter medications.
What other major retailers could jump on board as this initiative takes off? Stay tuned as the story develops.
WENATCHEE, WA - In celebration of the start of cherry season, Stemilt Growers has launched its #CherrySweet Summer Sweepstakes this week on its website, blog, and social media networks.
The goal of the sweepstakes is to deliver new cherry recipes to consumers that highlight the flavor and nutritious qualities of the cherry.
“Our #Cherry Sweet Summer Sweeps is all about giving consumers what they’ve told us they want – healthy recipes for their favorite fruit of the summer – cherries,” said Brianna Shales, Stemilt communications manager. “We’ve partnered with two of our food blogger friends to serve up fresh cherry recipes and weekly prizes to consumers all summer long, in hopes of inspiring people to enjoy Stemilt cherries in new yet nutritious ways.”
For entering the sweepstakes, consumers will receive a weekly email throughout June and July from Stemilt, highlighting a healthy new cherry centric recipe created either by Carolyn Ketchum from All Day I Dream About Food, or Connie Ott from MiscFinds4U. The recipes will highlight the natural sweetness and nutritional value of Stemilt cherries.
“We’re thrilled to partner with Carolyn and Connie, both of whom are well-known and well-loved by consumers. Tapping into their experience and expertise will be a great way for us to get more Stemilt cherries in people’s hands this summer, and educate consumers about the many great health benefits that cherries provide. Cherries are the prized fruit of the summer, and we want to encourage as many people as we can to enjoy them in new and healthy ways,” said Shale.
The Gluten Free Cherry Pavlova, a recipe created by Carolyn, will be the first of four recipes that Stemilt will share with customers through its #CherrySweet Summer Sweepstakes.
In addition to the sweepstakes, @Stemilt is putting on two #CherrySweet Twitter parties this summer. The first, hosted by Carolyn from @DreamAboutFood, is next Tuesday, June 24th at 9 PM EST /6 PM PST.
According to Shales, the #CherrySweet Summer Sweepstakes is just one of the avenues Stemilt plans on using to directly engage with customers about its apples, pears, cherries, and other summer fruits.
“We recently surpassed 50,000 likes on Facebook and continue to share fresh content from our farms and the table on Twitter, Instagram, Pinterest, Stemilt.com, and our blog,The Stem. Consumers want to know who grew their food and we’re all about telling them our story by bringing the farm right to the places they spend their time, all the while offering up inspiration for enjoying our fruits in new ways,” said Shales.
The #CherrySweet Summer Sweepstakes will run through July 28th.
CORAL GABLES, FL - Turbana and Weber Grills are partnering together alongside ShopRite stores in New Jersey to raise awareness for a local cause while introducing a tropical twist to the 4th of July.
The event is called “Grillin’ Goodness with Turbana and Weber” and features grilling and gardening tents outside of six ShopRite stores in the New Jersey Area. Customers will get to see Weber grill masters at work and sample the summer flavors of grilled plantains while learning about Learning Through Gardening, according to a press release.
“Turbana is thrilled to be partnering with Weber and ShopRite on this initiative. Not only is this event fun and interactive, but it also benefits a community program that we have such a strong history of involvement with. Turbana has worked with Learning Through Gardening in the past to create an international garden exchange program between schools in New Jersey and Colombia, so it seems natural for us to tie a New Jersey grilling event to this organization and show the community what amazing things Learning Through Gardening is doing for their children,” stated Turbana’s Marketing Director, Marion Tabard.
Customers at ShopRite stores across the country who choose to purchase Turbana plantains using their Price Plus Club cards during the promotional period between June 20 to August 31 will be automatically entered to win a Weber Spirit E-310 LP gas grill. ShopRite will also donate a portion of the proceeds from these plantain sales to the Learning Through Gardening program, helping to provide more schools with materials and funds to build vegetable gardens and promote a healthy lifestyle for their students, according to a press release.
“Weber is excited to be involved with ‘Grillin Goodness with Turbana and Weber.’ This event encourages consumers to try something new and different on their grill – like plantains. ‘Growing Smiles, Sharing Goodness’ is an endeavor that Weber is happy to endorse as it encourages healthy eating and being part of a community,” commented Jeanine Thompson, Weber’s Events and Promotions Manager.
In support of the program, social media and online personalities, ranging from mommy bloggers to grill masters, will be working to host a Twitter party with the hashtag #GrillinGoodness, hoping to inspire consumers to integrate plantains into their 4th of July festivities. The party will be hosted on Wednesday, June 18th from 12 a.m. to 1 p.m. - two days before the program begins - and will provide ideas for recipes, grilling tips, and nutritional facts about plantains.
Additionally, the brands are extending an invitation for South Jersey bloggers and local media to participate in the in-store grilling events in New Jersey in order to garner the support of the local community.