TORONTO, ON - Total Produce of Dublin, Ireland has agreed to purchase a 50% share in Gambles Ontario Produce, a distributor of fresh fruits and vegetables.
“This partnership with Total Produce will enable us to grow strategically to the benefit of our growers and customers,” said Jeff Hughes, President at Gambles Produce. “We will continue to operate autonomously but will have the support of Total Produce and their global affiliations alongside us.”
Gambles Produce is a leading fresh produce distribution company that services customers throughout eastern Canada, according to a press release. It operates out of two facilities; the Ontario Food Terminal Market and a 65,000 square foot distribution centre in Toronto. Its comprehensive delivery-based system services independent retail, wholesale, and foodservice operators throughout the Ontario on a daily basis.
Total Produce is one of Europe’s premier fresh produce providers. It grows, sources, imports, packages, distributes, and markets over 200 lines of fresh fruits, vegetables and flowers. Total Produce distributes 300 million cartons of fresh produce to the retail, wholesale, foodservice and processing sectors across Europe and North America annually and employs more than 4,000 people in over 100 locations across 20 different countries.
This acquisition is just one in an effort to expand Total Produce’s North American reach. Its introduction to this continental market was in 2013, with the acquisition of shares in the Oppenheimer Group, based in Vancouver, BC.
“We see this as a great opportunity for our team to continue to learn, develop and explore new opportunities to collaborate with other produce professionals around the world,” Gambles Vice President of Sales, Tom Kioussis, said. “This will provide our team with opportunities to share new and innovative best-in class operating practices.”
“Our day-to-day interactions with our customers and growers will not change,” says Hughes. “We will remain the same ‘Gambles’ that our friends in the industry know and enjoy doing business with. If anything, our relationships should only strengthen with new synergies we have with Total Produce.”
It will be “business as usual,” says Hughes. He believes the industry will be able to expect the same high quality experience they have always had with Gambles Produce.
PHOENIX, AZ – Is Sprouts Farmers Market looking to enter the Florida market? Sources say yes.
Real estate brokers and developers are telling the Tampa Bay Business Journal that the Phoenix-based retailer is actively seeking sites in the Tampa Bay region.
Real estate sources say that Sprouts is telling them that it is interested in multiple stores in the market and would like to have stores open there by 2016 or 2017.
A Spokeswoman from Sprouts tells the Business Journal that there is currently no news to share on Florida locations, but noted, however, that the retailer has already announced the states it will enter in 2015 which are Alabama, Tennessee and Missouri.
“The Southeast is a priority given our recent success in Atlanta, but beyond that it’s too far out to project any potential openings in other states,” said Donna Egan, Corporate Communications Director.
The Business Journal notes that Tampa Bay is a growing retail market. While Publix and Wal-Mart control the majority of the market share, several specialty grocers have expanded there in the last few years, including Whole Foods, The Fresh Market, Trader Joe’s, Lucky’s and Earth Fare.
Is Sprouts going to be the next grocer to join this list? For now, we will have to wait and see. Stay tuned to AndNowUKnow for the latest updates.
WASHINGTON, D.C. - Attention California pear growers! A new pear cultivar called Gem has been jointly released by the U.S. Department of Agriculture, Oregon State University, Michigan State University, and Clemson University.
Gem combines high yields with excellent appearance, fruit quality, and long storage potential, according to the USDA. The new cultivar is resistant to fire blight and isn't prone to brown discoloration, called "superficial scald," that affects some pear varieties. The source of Gem's fire blight resistance is the cultivar 'Barseck'.
Horticulturist Richard Bell, at the Agricultural Research Service's (ARS) Appalachian Fruit Research Station in Kearneysville, West Virginia, and his colleagues describe Gem in the March 2014 issue of HortScience. The Kearneysville location also evaluated Gem for fruit quality, fire blight resistance and productivity in replicated trials.
Gem requires at least 3 weeks of cold storage before normal fruit softening, but it will last for at least 28 weeks in cold storage without core breakdown or superficial scald. The fruit can also be eaten immediately after harvest without softening, as it has a crisp, juicy texture. Its flavor is sweet and mildly aromatic. Sensory panelists described Gem as similar in appearance, flavor, and purchase intent to the Bartlett pear.
Gem is recommended as a fresh-market pear for both commercial and home orchards. While budwood of Gem is limited, genetic material of this release will be deposited in the National Plant Germplasm System, where it will be available for research purposes, including development and commercialization of the new cultivar.
Driscoll's has been featured in the lastest edition of AndNowUKnow's print publication, The SNACK Magazine. Kevin Murphy, Driscoll’s new President and Chief Operating Officer and Soren Bjorn, the new Executive Vice President of Driscoll’s of the Americas share the company's delightful berry philosophy which acts as the driving force behind Driscoll's plans for global expansion.
Check out The Snack article by clicking here, or read the full text below:
A Delightful Berry Philosophy
To continually delight berry consumers with fresh, delicious, and beautiful fruit, has been the philosophy driving Driscoll’s slow and steady global expansion across new markets spanning both Asia and Europe. For a successful international powerhouse like this Watsonville-based company, Driscoll’s belief in organic growth on its own terms means that quality and flavor will never be sacrificed. Family-owned and operated for more than 100 years, Driscoll’s believes future success lies with becoming a beloved brand that positively enriches the lives of everyone they touch. Meet the two vanguards who are now at the helm of that initiative – Kevin Murphy, Driscoll’s new President and Chief Operating Officer, and Soren Bjorn, the new Executive Vice President of Driscoll’s of the Americas (DOTA).
“We want to be proud of our evolution and rewarded for a job well done,” Kevin tells me. “While growing quality fruit will continue to drive our market share, we know the opportunity is much larger if we focus on the vision of our company and strive to positively impact communities across the world.”
“Thinking about the next generation of Driscoll’s evolution is critical for us, and advancing our global business strategy takes time and effort on all fronts. Here in the Americas, we have been held together by a really important and compelling set of values: passion, humility, and trustworthiness. These values must stay consistent as we expand our operations around the world,” Soren adds.
Kevin’s competitive spirit, yet technical approach to leadership may run perpendicular to Soren’s resource-oriented mindset, but together, the two of them are more than capable of taking an already successful foundation to greater heights with this clear mission. That’s precisely what makes them so efficient at the forefront of the organization’s strategic long-term success.
Born and raised in South Africa, Kevin earned his undergraduate degree in agricultural economics from the University of Natal before arriving in the United States in 1989. Soon afterward, he began working for FreshCo, which later become known as Fresh Express, for a little over a decade in various strategic capacities before moving on to Capurro Farms. Kevin remembers his days at Fresh Express fondly, noting that those years were what helped shape who he is at Driscoll’s today. “The reason I’m here is because of everything I learned in those days,” he says.
After Capurro Farms merged with Growers Express, Miles Reiter, the CEO of Driscoll’s, approached Kevin about running supply and operations at the company. “I think Miles understood that on some level I had the combination of produce knowledge, along with having been in the business for almost 20 years, coupled with being part of various growth companies and feeling comfortable with what Driscoll’s was trying to do,” Kevin tells me. He has since served as President of the Americas business unit before being promoted to his current role in late 2013.
As Kevin settles into his new role as President and Chief Operating Officer, Soren will be responsible for Driscoll’s of the Americas’ business unit leading all cross-functional aspects related to its financial success. Soren has held a number of top executive positions with various companies in the industry, including Flavorfresh Limited as Vice President and CEO of Unimark Foods, which was later sold to Del Monte Foods. His ambitious nature and passion for sports, especially golf, has cultivated his growth in the industry.
“Unimark was an interesting introduction to the produce business. This is one of those industries where if you decide you really like it, you got to stay in it. It’s like a drug,” Soren laughs.
Since its humble beginnings in California’s Pajaro Valley, Driscoll’s has maintained U.S. market leadership in fresh berries, and its growth continues to be primarily driven by its successful go-to market strategy. Kevin puts it simply, “It will always be about delighting the consumer with consistently great tasting berries. That’s what builds brand loyalty and a true relationship with your consumers – you try to never disappoint.”
“There are many people focused on our mission of delight from our internal dedicated breeding team, to independent growers and our customer partners,” Soren adds. “If we work together around this common objective, we can succeed. There isn’t one stakeholder who isn’t working on making that happen.”
It amazes me how in sync Kevin and Soren are, and it speaks volumes about their drive to deliver great fruit and achieve a common goal. Their cooperation together and foresight and understanding of the company’s core mission allow the company to consistently drive innovation and push the needle forward in terms of growth and direction.
Research and development into patented berry varieties is a pivotal first step in finding new ways to delight the consumer year-round. Driscoll’s relies on natural cross-pollination techniques to continue meeting demands for safe, better tasting, and more attractive fresh berries. “It’s all about continuous innovation,” Kevin explains.
“We’re always looking at new and different varieties. It’s important to us that we make sure the value/price relationship is right and that we’re always putting good quality berries out there,” he says. “Berries are right at the intersection of convenience and health.”
“Our job is to convince customers that this is how you do it,” Soren explains. “We have data that shows how we can continue giving the consumer a better experience. Consumer insight is a very large part of our DNA as a company.”
Driscoll’s receives tens of thousands of responses in feedback from consumers on how well the company is performing. “We can take that data to retailers to show them how they’re doing and compare it to how someone else is doing, and identify the reasons why there are those differences,” Soren continues. “I ask myself, ‘how can we do a better job to delight the consumer?’ We have enough data to compare different ranges. Technology allows us to do that; it allows us to push the envelope.”
Kevin reminds me, however, that Driscoll’s wants to grow in a way that’s consistent with its values. Trustworthiness, humility, and passion are the three values of the company and are at the center of its efforts. “We’re not interested in growth for growth’s sake,” he reiterates.
Indeed, though the company’s global aspirations seem to reach toward major expansion, the real goal is to get delightful, quality berries into consumers’ hands – an initiative which Driscoll’s executes through great people, business development, and a focus on the consumer experience over growth.
At the end of the day, the goal remains the same; deliver delightful berries to consumers while aligning Driscoll’s global operations around the world. With great assurance, Kevin and Soren both note that with some degree of humility and focus, the company will advance that cause.
“We’re always thinking of the next generation of growth and exploring where we can deliver and where we can continue pushing innovation forward,” Soren tells me.
Reflecting back on our conversation, I wonder what advice Kevin would give to his fellow peers on growing a global brand.
“There was a time when I thought I had the answers to all the questions, and as you get older, you realize you don’t even have all the questions,” Kevin laughs. “But I have learned that it’s a great industry and there’s a world of resources still to tap into. You’ve got to earn your place every day and stay focused on things that matter. If you think you’re too good, you’ll get yourself in trouble. The relationships we have with ourselves, our customers, our growers… we can’t take that for granted. It’s good to have a healthy dose of paranoia.”
Already a market leader in Australia and ramping up production in China, Driscoll’s systems of values and empowering executive leadership has allowed the company to form its business model in a very targeted and strategic way. With that said, I look forward to seeing the continued brand penetration and expansion to come as the company continues to forge ahead on the global stage. Here’s to another one hundred years of success, Driscoll’s.
HOUSTON, TX – Sysco Corporation has posted in-line earnings for its second fiscal quarter, ending December 27, 2014.
According to the report, the company saw Q2 sales of $12.1 billion, a 7.6% increase. Also, gross profit increased 6.1% to $2.1 billion while the company’s gross margin decreased 23 basis points to 17.25%.
“Our second quarter financial results were generally in-line with our expectations, as we made consistent progress on our business transformation initiatives and did a good job of remaining focused on the needs of our customers. As a result, we generated solid case volume growth of nearly 4% and managed acute inflationary pressures effectively,” said Bill DeLaney, Sysco’s President and CEO.
Other notable highlights from the report include:
- Adjusted operating income increased 3.1% to $396 million
- Operating income decreased 10.3% to $315 million
- Adjusted diluted earnings per share (EPS) increased 5.1% to $0.41
- Diluted EPS decreased 25.0% to $0.27
“We continue to have opportunities to improve our management of operating expenses and have multiple initiatives underway to address this area of our business,” added DeLaney.
The report also touched on Sysco’s recently announced new proposal to sell 11 distribution centers, currently run by US Foods, Inc., in order to attain approval from the FTC.
The centers would be sold to Performance Food Group, currently owned by an investment firm by the name of Blackstone Group LP, and generated $4.6 billion in revenue for the most recent fiscal year, according to Sysco. This more than doubles Sysco’s most recent offer of selling only $2 billion in annual revenue.
For now, it remains unclear as to when and if this merger would be completed. Stay tuned to AndNowUKnow for the latest updates.
CORONA, CA - Salinas Valley local and produce industry veteran Jeff Davis has joined the Veg-Fresh Farm team as its newest Sales Manager, according to a press release.
Bringing 15 years of experience in the business with him, Davis is to play a key role in the company’s expansion of its National Restaurant Solutions Division. Joining Joe Marchese, Geoff Bell and Monica Medrano, Davis will be assisting in the servicing of 41 distribution centers in 30 states that support and supply to Veg-Fresh’s restaurant consumers.
"Jeff will be an integral player in the growth of our National Restaurant Solutions Division," Randy Cancellieri, Veg-Fresh Farms General Partner, said in the release. “His varied experience will enable him to immediately begin developing and delivering with innovative solutions that align with our customers’ strategies.”
With sales experience spanning back to 1999 with companies such as River Ranch Fresh Foods, Sysco, and GreenGate Fresh LLLP, it will be interesting to see how Davis’s knowledge will help to further expand Veg-Fresh’s client base.
HIGHLAND, IN – Strack & Van Til has reorganized its executive management team as part of a plan to better position the chain for the future. Company President and CEO Ken Diehl made the announcement.
“I’m very excited and pleased to announce the hiring of several new members to our executive management team as well as the restructuring of responsibilities across the board,” said Diehl. “These changes will strengthen Strack & Van Til’s ability to excel in the highly competitive markets we serve. This team provides exceptional skills in the cornerstones of our stores, particularly store operations, financial management, and customer service.”
According to a press release, the new team, which is now fully in place, includes the following members:
- Chris Bengtson, Chief Operation Officer – Bengtson, a 25-year industry veteran, comes from Albertsons' Southwest Division where he held P/L responsibilities for 105 stores. He will be responsible for store operations, sales growth, store conditions, and identifying and developing talent in Strack & Van Til’s store management teams.
- Stan Swinton, Chief Merchandising Officer – Swinton most recently served as VP of Center Store for the Great Atlantic and Pacific Tea Company where he led center store marketing and merchandising for 301 stores. Stan will be responsible for company-wide sales growth initiatives, innovation, profit margins, and sales and merchandising planning in this new role.
- Jeff Strack, Chief Marketing Officer, Public Relations & Customer Relations Officer – Jeff Strack was part of the leadership team that grew the company from 10 to 38 stores. He will be responsible for all marketing and advertising programs, social & digital media initiatives, customer & public relations, and consumer affairs issues.
- Phil Latchford, Chief Financial Officer – Phil is currently Strack & Van Til’s Controller. He will be replacing the retiring Keith Bruxvoort. As a CPA, Latchford will manage shareholder value, budgeting, forecasting, internal and external audit, and cash management.
- David Negron, Vice President of Fresh and Perishables – David has more than 31 years in retail food operations and served most recently at Jewel Food Stores. His position will oversee key components of store merchandising initiatives.
- Andy Raab, Vice President of Real Estate – Raab, a Senior Business Leader for the last 16 years at Ultra Foods, will take on responsibility of Strack & Van Til’s real estate portfolio which includes acquisitions, new store & remodel construction initiatives, and store facility maintenance.
- Rex Mudge, Vice President of Human Resources – With over 25 years in Human Resources in the retail food industry, Rex will be responsible for training and development, workplace diversity, recruitment and compensation, and organizational development.
- Derek Kinney, Vice President of Labor Relations and Customer Service – Derek comes to Strack & Van Til with over 31 years in the industry. He most recently served as VP of Human Resources and Labor Relations for the Great Atlantic and Pacific Tea Company. He will oversee key aspects of labor relations and customer service initiatives.
- Tom Cohen, Vice President of IT – Tom has over 20 years in IT including serving as CIO with Toms.com. He will be responsible for managing strategies in technology, systems integration, process innovation, and emerging technologies.
While announcing these changes, Diehl spoke about the contributions made by retiring Vice President of Finance Keith Bruxvoort who has been with the company since 1989. He said, “We wish Keith and his wife Bev nothing but the best as they move on to a more enjoyable pace after his many years of service to our stores.”
In terms of restructuring, he added, “What pleases me most about this new team is that so many of them started their careers in stores working as baggers and clerks, learning the business from the ground up. They have already established successful careers in our industry and many are leaving great companies to move to the Midwest, clearly embracing the vision we have for Strack & Van Til and Ultra Foods. Our customers, employees, suppliers and vendors will all benefit from the more than 200 years of accumulated experience that this team will now bring to every aspect of our operation.”
Strack & Van Til operates 20 stores under the corporate banner, 16 Ultra Foods stores and 2 Town & County Markets located throughout the Chicagoland area and northwest Indiana.
HOUSTON, TX - Sysco has made another offer in an attempt to close the deal on its merger with US Foods, according to Reuters. The company has now proposed to sell 11 distribution centers, currently run by US Foods, Inc., in order to attain approval from the Federal Trade Commission (FTC).
“Unfortunately, the FTC has taken a different view of the potential competitive impacts of the merger,” Bill DeLaney, Sysco Chief Executive, said in a news release according to the Wall Street Journal.
The centers would be sold to Performance Food Group, currently owned by an investment firm by the name of Blackstone Group LP, and generated $4.6 billion in revenue for the most recent fiscal year, according to Sysco. This more than doubles Sysco’s most recent offer of selling only $2 billion in annual revenue.
According to a press release, the distribution centers are located in: Corona, Calif.; Denver, Col.; Kansas City, Kan.; Phoenix, Ariz.; Salt Lake City, Utah; San Diego, Calif.; San Francisco, Calif.; Seattle, Wash.; Cleveland, Ohio; Las Vegas, Nev.; and Minneapolis, Minn.
“While we respectfully but vigorously disagree with the FTC’s analysis, we believe this divestiture package fully addresses its concerns,” DeLaney said.
"The collection of distribution centers and other assets that Performance Food Group will acquire along with related support services agreements will enable us to compete effectively for national broadline foodservice customers," said George Holm, Performance Food Group Chief Executive Officer and President. "We are excited by the opportunities for growth presented by this transaction and are confident that we will effectively execute our plans to become one of the country's premier broadline distributors serving customers coast to coast."
As we have previously reported, the merger has been delayed more than once since the official offer made in December of 2013. The only two companies with the current ability to offer delivery contracts nationwide to large consumer companies such as hospitals and hotels, the merger would combine the country’s two largest food distributors.
Stay tuned to AndNowUKnow to see if this offer wins the green light from the FTC.
PLANT CITY, FL - While the groundhog seems to think we’ll have 6 more weeks of winter, this weekend with Wish Farms may feel like spring is already upon us. Hosting Bright House Networks’ second annual Strawberry Picking Challenge, the farm company promises meals, music, and (of course) strawberry picking.
“By bringing this event to the farm, we hope to bring awareness and education to the hard work of our farm workers, while also making it a family-friendly event,” Gary Wishnatzki, Owner of Wish Farms, said.
The event benefits Redlands Christian Migrant Association, a nonprofit organization located in Florida, provides early education and care for children of migrant farm workers and rural low-income families. Last year it was able to donate almost $75,000 to the cause.
According to a press release, the event will kick-off this Friday night, Feb. 6, with a more adult-centric evening of dinner, drinks, and a silent auction to benefit TPepin Hospitality Centre located in Tampa, FL. Then Saturday, Feb. 7 starting at 11 a.m., the family fun begins.
Enjoy some fresh strawberry shortcake, refreshments, and from 12:30 to 2:00 p.m. listen to live country music performed by the locally popular Clemens Road Band. Watch as corporate teams compete for title of “Best Harvest Crew,” and enjoy some time with the kids.
Located at Futch Farms, 3536 Futch Loop, Plant City, FL 33566, general admission is free while parking and kids meals are $5, and adult meals are $10. All proceeds go to the RCMA, so have fun knowing that it all goes toward a good cause.
NORTHEAST U.S. – Winter Storm Linus is making its way to the northeastern United States after bringing snow and freezing rain to the Midwest.
The Chicago Tribune is reporting that Linus is the fifth largest blizzard to ever hit the Windy City, leaving more than 19 inches of snow on the ground there this morning, and the Weather Channel is saying that it is the third largest to ever hit Detroit.
In Chicago, the storm began Saturday night and produced almost non-stop snowfall, coupled with drifting snow and wind gusts of up to 45 mph.
According to NBC News, approximately 1,700 flights were cancelled in and out of Chicago’s airports by Sunday afternoon leaving at least 15,000 people scrambling to find other ways to their destinations.
The Weather Channel is forecasting that Linus will bring a swath of heavy snow across much of the Northeast, laying down a narrow zone of freezing rain across a heavily populated area near New York City and into parts of southern New England.
In New England, the heaviest snowfall totals are expected west and north of Boston to Downeast Maine, where totals could exceed 18 inches.
Snow began to fall in NYC last night and has since changed to freezing rain with occasional sleet. Though nearly 6 inches of snow have already accumulated in some areas of New England, the forecast for New York City is only 2-5 inches of snow.
NYC Mayor Bill de Blasio warned that ice would be the biggest threat and that commuters should be “very, very cautious,” according to NBC News. Mayor de Blasio was much more conservative about this storm after Winter Storm Juno only dropped 6 inches instead of the two feet which were warned against. He said that the city is prepared for the weather and will not shut down.
The Associated Press is reporting that the storm is currently affecting NYC-area airports with 560 cancellations at Newark-Liberty International, 325 at LaGuardia and 124 at JFK. Luckily, after today there is no snow or winter weather forecasted in New York City for the rest of the work-week.
Stay tuned to AndNowUKnow for the latest on Winter Storm Linus.