LAKELAND, FL and AUSTIN, TX - We’ve examined why a Whole Foods and Publix deal might make sense, but it’s still one of the more bizarre rumors to come out so suddenly. Whole Foods’ shares saw a spike in heavy volume on June 5, and interest in options was triple the normal amount in early trading, according to options analytics firm Trade Alert, fueling unsubstantiated reports of the rumored acquisition.
Spokesmen from both Whole Foods and Publix have commented on the rumor, saying that they either don’t comment on rumors or that the rumors “have no merit.”
Additionally, Gavin Maguire, a senior analyst at Briefing.com, which provides financial commentary and analysis, claimed, “We see rumors like these 20 to 30 times a day, and very few of them end up coming to fruition. All the clues are there that this would kind of make sense. But you see this kind of activity all over the market, especially in a stock that got crushed.”
With that said, the Austin Business Journal gives three more reasons why the deal seems unlikely…
1) Acquisition history: Rather than buying entire chains, Publix has only bought a handful of stores such as the $500 million purchase of 49 Albertsons stores in Florida in 2008, or last year’s acquisition of seven Bi-Lo stores in Charlotte, North Carolina, Austin Business Journal reports. If a deal were to happen, it might be more likely to see Publix buy blocks of Whole Foods stores, especially those in the southeastern region of the U.S.
2) Geographic disparities: The majority of Publix stores are based in the Southeast U.S., with 1,077 supermarkets in Florida, Georgia, Alabama, South Carolina, Tennessee, and North Carolina. Whole Foods, on the other hand, has approximately 383 stores across the U.S. and District of Columbia, Canada, and the United Kingdom. Although Publix has been expanding outside Florida in recent years, analysts say it’s a bit of a stretch for the chain to broaden its scope nationwide with a Whole Foods acquisition, according to Herald Tribune. Publix has spent a considerable amount of time building a strong network of stores in Florida. For now, it seems unlikely that it will budge. These maps from Big Think show you how the two retailers compare geographically.
3) Strategy: Since 2011, Whole Foods has maintained a goal of 1,000 stores in the U.S. and Canada and has since expanded that goal to 1,200. Whole Foods CEO John Mackey said that while competition has accelerated, Whole Foods is still gaining market share. “We continue to differentiate. We continue to innovate. We continue to upgrade the experience that we’re giving our customers. We think it’s a good strategy and that’s why we’ve gone for the first time and laid out how we see the next five years happening,” said Mackey, according to Austin Business Journal.
Check out our previous articles on the rumored Whole Foods and Publix deal below...
Will Publix Acquire Whole Foods?
Three Reasons Why a Whole Foods-Publix Deal Makes Sense
What do you think about a Whole Foods-Publix deal? Let us know by voting in the survey below!
FOLSOM, CA – Technomic surveyed more than 300 foodservice professionals and found that customer interest in healthy dining options is pushing colorful fruits onto restaurant menus.
Though they are normally found in breakfast items, blueberries are showing up in dished served all throughout the day. They are reported as the third most-purchased fruit, trailing only strawberries and apples, according to a press release.
“We learned from a top 500 chain menu survey earlier this year that blueberry mentions on menus boomed 97 percent between 2007 and 2013,” says Mark Villata, executive director for the U.S. Highbush Blueberry Council (USHBC). “Now, this usage and attitude study gives us insight into why. That is, what are the drivers influencing decision makers to increase their use of blueberries?”
When asked why they like using blueberries, the survey reports that chefs and operators say:
- Blueberries are a healthy option for customers (82 percent)
- Blueberries are low-labor and easy to use (82 percent)
- Blueberries give the entire operation a health halo (58 percent)
- Menu prices can be higher for items that include blueberries (42 percent)
“Blueberries are delicious, healthy and versatile, and add to our menu,” says David Goldstein, executive chef at Los Angeles-based Sharky’s Woodfired Mexican Grill. “Our menu is loaded with fresh, healthy foods so when we put together our Harvest Quinoa Superfood Salad, we added dried blueberries. These days, I think customers expect to find blueberries in the healthiest options.” In addition, Sharky’s offers handmade, freshly prepared lemonades; one of their newest is Blueberry Mint made with fresh blueberries.
A survey conducted by Hebert Research in 2013 showed that 99% of Americans believe blueberries are healthy, according to a press release. With demand for healthy menu items increasing, it will be interesting to see what dishes start showing up on menus.
IDAHO FALLS, ID – Potandon Produce updated its Klondike Brands website making navigation easier and placing larger emphasis on potato recipes and preparation tips.
Since 2008, the Klondike Brands website has been Potandon’s main consumer website and has already gone through two earlier versions, according to a press release. In this update, the Home Page offerings have been moved above the fold for easier recognition, and the Store Locator has been made more prominent.
The recipe section has been revamped to cater to its growing database of recipes. The section has been reorganized in a way that includes specific preparation and cooking times and a more dynamic search feature.
The site now contains a 30 minute potato salad recipes sections, a preparation secrets section which will be constantly updated and a new Events/Blog area.
AVONDALE, PA - To-Jo Mushrooms announced today that Kevin Delaney has been hired as VP of Sales and Marketing, and Amy Steenrod has been appointed to Director of Human Resources.
Mr. Delaney’s responsibilities will include managing To-Jo’s national sales team and overseeing the marketing strategies for both the Fresh and Food Products Divisions of the company. Previously, he served as Director of Marketing at Procacci Brothers where he worked since 2007. Kevin also serves on the PMA Foundation Board of Directors, according to a press release.
“Kevin will give To-Jo a national perspective that further strengthens our competitive position in both the Foodservice and Retail segments of the industry. We are excited to have him on board as we continue to expand our business and develop new territories,” said President Anthony D’Amico.
Amy Steenrod was previously Sr. Human Resources Business Partner at Embraer Aircraft Holdings where she was an integral part in their three year run as one of “Florida’s Best Companies to Work For,” according to a press release. She brings 20 years of HR experience and a proven set of business practices.
“The addition of Amy to our senior leadership team will allow us foster our company’s core values, enabling To-Jo to become an employer of choice in the industry,” said D’Amico.
Congratulations, Kevin and Amy!
ROSEMONT, IL - US Foods plans to open a new distribution center in Seabrook, New Hampshire. This development will better serve its customers throughout the New England area.
“We are thrilled US Foods has selected Seabrook as the hub of its New England operations,” said Bill Manzi, Seabrook town manager. “We look forward to partnering with them on a major economic development project that will bring quality jobs and much needed tax revenue to the Town of Seabrook.”
Currently the company services its New England customer base from a center located in Peabody, MA. The facility there is approximately 188,000 square feet, and the new facility will be more than 500,000 square feet and include additional dry and cold storage, fleet fueling and maintenance areas, according to a press release.
“This new building will allow us to better serve our more than 2,000 customers throughout New England and operate from a more efficient and modern facility which will benefit the company, its customers and the nearly 300 employees in the Boston Division,” said John Glynn, President, Boston Division, US Foods.
US Foods is partnering with the ESI Group on the renovation of the new facility to make sure that it operates as efficiently as possible. Construction is planned to begin at the end of June with a tentative opening in the first quarter of 2015.
CHICAGO, IL - It is an exciting time in fresh produce, especially when it is your first time in Chicago! As the trade show portion of United Fresh Produce Association's annual convention and expo in Chicago wrapped up yesterday, attendees joined together to cast their votes throughout the show for fresh produce innovation and recognized this year's New Product Awards in five categories.
This year’s event represented 328 companies – a 15% growth in exhibitors over last year. Attendees matched San Diego numbers, which is over 4,500 attendees for the United Fresh show.
The award categories were competitive and brought some of the best of our industries innovations to the forefront of the industry. The category awards were delivered in the areas of Best New Food Safety Solution, Best New Fruit Product, Best New Packaging, Best New Packing/Processing Equipment, and Best New Vegetable Product. More than 40 fresh fruit and vegetable innovations competed in the showcase.
The 2014 New Product Award winners announced today are:
Best New Food Safety Solution: FoodLink Fresh - FoodLink
Best New Fruit Product: Crunch Pak with Marvel Apple Snacker, Crunch Pak
Best New Packaging Product: Josie’s Organics Romaine Hearts, Braga Fresh Family Farms
Best New Packing/Processing Equipment: STRAWBERRY CAPPER Mod. Frazer, Turatti S.R.L.
Best New Vegetable Product: Y.E.L.O., Mastronardi Produce/Sunset
"These winning products have been selected by United attendees as outstanding representations of the new approaches, ideas and processes that are driving the fresh fruit and vegetable industry forward, and we applaud them for their product development," said John Toner, United's vice president of convention & industry relations. "From its very beginnings, the United show has been the undisputed home of innovation for the produce industry, and these awards continue to showcase the best and brightest minds in the produce business."
The new products and solutions that graced the show are evidence of the leaps and bounds the industry is taking in innovation, partnerships and fresh concepts.
Other great highlights hits from the event were keynote addresses from Publix CEO Ed Crenshaw, who offered his insights on the future trends in the supermarket retail industry, while The Packer named Tony Freytag, Senior Vice President of Sales and Marketing, Crunch Pak Sliced Apples, as the company’s Person of the Year.
The Thursday evening festivities, brought together an amazing group of people for the Reception Honoring Women in Produce. While the reception honors all women working in the produce industry the event also recognizes one outstanding female industry leader. Teri Miller, Produce Category Manager, Delhaize America, received the award this year, presented by Lisa McNeece, Vice President, Foodservice and Industrial Sales, of Grimmway Enterprises Inc., who received the award in 2013. The room was complete with industry leaders, up-and-comers, both female and male.
The Fresh Marketplace Learning Center and FreshTech Learning Center on the show floor offered a variety of perspectives from our industry peers ranging from opportunities to drive produce sales at the school level and new fresh-cut equipment design developments, to food safety issues, restaurant trends and a Women in Produce panel to inspire the next generation of produce professionals.
Thanks again, United, for creating an atmosphere for promoting innovation, the sharing of ideas and fresh produce!
Stay tuned for an upcoming article on some of my United Fresh product favorites, almost too many to count.
KINGSVILLE, ON - Mastronardi’s newest SUNSET® product Y.E.L.O. Youth Energy Life Om™ took this year’s Best New Vegetable award at United Fresh in Chicago.
“We’re honored to receive the Best New Vegetable Award for Y.E.L.O.™,” said CEO Paul Mastronardi. “We knew from the start that Y.E.L.O.™ had incredible color, flavor, and quality, and this award certainly validates that.”
Since its debut at 2013 PMA Fresh Summit, Y.E.L.O. has become known as A Taste of Sunshine™, bringing bright color and flavor to consumers across North America. In the video below, SUNSET® Girl, Milla Mastronardi, gives you an inside look at these new tomatoes and Mastronardi’s Top Seal Packaging. Check it out!
“Mastronardi Produce has been leading the greenhouse industry for 60 years and has certainly become known for their flavor and quality,” said John Toner, Vice President of United Fresh. “I’d like to congratulate them for leading innovation within the industry and introducing such a great new vegetable product to consumers everywhere.”
Paul Mastronardi continued, “Y.E.L.O.™ comes from the same greenhouse as Campari® brand cocktail tomatoes, so consumers know it’s a product they’ll love. With such a bright, unique color and nearly 50% more Vitamin C than other red tomatoes, Y.E.L.O.™ has definitely become a foodie and family classic.”
Y.E.L.O.™ brand cocktail tomatoes are currently sold in SUNSET® top seal clamshells as well as Campari® combo packs, offering consumers two bright colors in one package.
Congratulations on the award, Mastronardi!
CHRISTIANSTED, VIRGIN ISLANDS – Coosemans Worldwide has opened a new specialty and organic produce division under the California Specialty Farms (CSF) banner at the Los Angeles Produce Terminal Market.
Danny Coosemans and James Macek purchased California Specialty Farms and its processing and shipping facility in 2010, according to a press release. CSF is the leading processor of the “California carrot,” along with varieties of hand-turned and carved produces specialties.
“We had long been fans of California Specialty Farms products and personnel, so when the opportunity to purchase CSF arose, Danny and I jumped on it,” said Macek, president of Coosemans-Denver, Phoenix and CSF. “The new location on the LA Market will help us to better serve the local and regional produce communities, and our product mix of organic and specialty produce (including a few new wrinkles), will be a nice addition to one of America’s most dynamic produce markets.”
Bruce Hoffman, partner and VP of CSF, brought in Martha Zavala as the Market Division’s General Manager. Zavala, a Market veteran, has experience with Malibu Farms, Davalan and Fresh Point Los Angeles, accoding to a press release.
BRAZIL - Like most opening ceremonies, Brazil’s 2014 World Cup Opening Ceremony featured a wealth of colorful outfits, energetic performances, with an appearance by Pitbull, Jennifer Lopez, Claudia Leitte, and… wait, are those dancing fruits and veggies?!
“We Are One,” along with co-artists Jennifer Lopez and Claudia Leitte.
Is this the World Cup or a produce aisle come to life? Just watch the video above. You’ll see special guest star appearances from…
- Lettuce
- Radishes
- Blueberries
- Endives
- Eggplant
- Peppers
- Broccoli
They all swirled and pranced around to appease the giant LED ball in the center of the field - its bright, flashy lights expressing joy and jubiliation at its dancing minions. Just when you thought it couldn’t get any more absurd, the ball opened, and Pitbull emerged in all his glory. He was there to sing his World Cup theme song, “We Are One,” along with co-artists Jennifer Lopez and Claudia Leitte.
I thought I saw enough produce in my dreams, but Brazil took it to a whole other level.
WASHINGTON, D.C. - The Grocery Manufacturers Association (GMA) and other trade groups have filed a lawsuit in federal court challenging Vermont’s GMO labeling law. The lawsuit comes at a time when new, recent surveys revealed that an overwhelming amount of Americans believe that genetically modified foods should be labeled accordingly.
GMA issued a statement calling Vermont’s mandatory GMA labeling law, Act 120, a “costly and misguided measure that will set the nation on a path toward a 50-state patchwork of GMO labeling policies that do nothing to advance the health and safety of consumers.” The Snack Food Association, International Dairy Foods Association, and the National Association of Manufacturers are supporting GMA’s charge against Vermont.
Vermont became the first U.S. state to require labels on foods containing genetically modified ingredients when Governor Peter Shumlin signed the bill into law last month. Maine and Connecticut have previously passed similar laws, but they won’t take effect until other states follow suit, according to local news station WPTZ. Vermont’s law takes effect in July 2016. Lawmakers in Massachusetts, Oregon, Colorado, and New York are also considering labeling proposals, according to MintPress News.
“Act 120 imposes burdensome new speech requirements – and restrictions – that will affect, by Vermont’s count, eight out of every ten foods at the grocery store,” GMA said in a statement. “Yet Vermont has effectively conceded this law has no basis in health, safety, or science. That is why a number of product categories, including milk, meat, restaurant items and alcohol, are exempt from the law. This means that many foods containing GMO ingredients will not actually disclose that fact.”
Recent surveys by the International Food Information Council Foundation (IFIC) and Consumer Reports suggested that a majority of Americans support GMO labeling. IFIC’s survey showed that 63% of Americans endorse the FDA’s current voluntary policy for labeling genetically modified foods, according to a press release. Meanwhile, the April 2014 Consumer Reports survey revealed that 92% of respondents felt that foods made with GMOs should be labeled accordingly, MintPress News reports. The results also showed that 72% of those respondents felt that it was important or very important to avoid genetically engineered ingredients when making purchases.
However, GMA has gone on record to say that GM crops “are safe and have important benefits for people and our planet,” noting that they use “less water and fewer pesticides, reduce crop prices by 15-30 percent.” GMA also claims that a new study from Cornell University shows that New York’s proposed mandatory GMO labeling bill would cost families an average of $500 per year. The association encourages bipartisan federal legislation, the Safe and Accurate Food Labeling Act, HR 4432, which would require a label on foods containing GM ingredients only if the FDA determines there is a health or safety risk.
In response to the lawsuit, the Organic Consumers Association’s National Director, Ronnie Cummins, said that the move is a “desperate attempt to protect corporate shareholder profits at the expense of consumers’ rights and health.” Cummins added, “More than 60 other countries have either banned GMOs, or require mandatory labeling of foods that contain them. Consumers in the U.S. have every reasonable right to the same information that consumers in other countries have about foods and ingredients that have not been subjected to independent, pre-market safety testing.”
Clearly, this will be a fight that will continue for months, perhaps even years, to come as both sides of the debate throw down the gauntlet. Though California lawmakers recently rejected a GMO labeling law (see the link below for our previous story), it remains to be seen how other U.S. states will weigh these heated opinions when voting for their respective proposals.
California GMO Labeling Bill Rejected
Stay tuned to AndNowUKnow as we continue following any further developments on this lawsuit.