MEXICO - With the departure of former CEO Scot Rank, Wal-Mart de México's Chairman of the Board, Enrique Ostalé, is preparing to assume a new mixed role as both Chairman and CEO, according to a press release.
“Mexico and Central America is a priority market for Wal-Mart,” said David Cheesewright, President and CEO of Wal-Mart International and Wal-Mart de México and Centroamérica Board Member. “Enrique has excellent global experience within the retail industry and will drive growth opportunities throughout the region, both in stores and through our growing e-commerce business. He is a strong leader, and his cross functional experience will ensure that we remain well positioned to serve the 2 billion customers that count on Wal-Mex every year. The dual role of CEO for both Wal-Mex and Wal-Mart Latin America will give Enrique the unique ability to leverage our expertise and capability across nine markets, taking advantage of the growth opportunities that the whole region has to offer.”
The longtime Wal-Mart executive, who also serves as CEO for Wal-Mart Latin America, is expected to provide some much needed stability for the retailer after setbacks involving a string of bribery allegations, high-level executive departures, and the loss of Rank. It is worth noting that Antonio Ocaranza, a Spokesman for Wal-Mart de México, has gone on the record saying that Rank’s resignation from his position as CEO and, more recently, from the Board position he held for 14 years was unrelated to the ongoing bribery investigations.
“We appreciate the leadership role that Scot played in the Wal-Mex business for 14 years and wish him success in his new endeavors,” added Ostalé.
Ostalé first joined Wal-Mart in 2009 after the retailer's takeover of D&S (present-day Wal-Mart Chile) where he had held several positions in merchandising, operations and finance stretching back to 1989. From 1997 to 2000, he served as Chief Financial Officer (CFO) for the Chilean retailer and later as President and CEO of Wal-Mart Chile from 2006 until March 1, 2013, when he was appointed President and CEO for Latin America.
According to the New York Times, Ostalé is expected to begin his new role on January 1st, 2015. Whether he will be able to turn around division's recent poor economic performance, including a 8% fall in profit during Q3, remains to be seen. Wal-Mart, however, appears to be confident that they have the right man for the mission in Ostalé. Stay tuned.
FRANCE & IRELAND - Chili lovers' ears perked up when reports began to emerge last week stating that a shipment of fresh peppers had triggered a fire alarm on an Air France jumbo jet, forcing the plane to make an emergency landing in Ireland.
Rest assured, no damage to the plane, pilots, or passengers occurred during the course of this surprising produce story. It did leave officials with a puzzle to sort out over the ensuing hours, however. How had peppers brought a several ton jumbo jet to the ground?
It turns out that condensation was the culprit.
“Have you ever put your vegetables in the refrigerator in a plastic bag, with no air whatsoever, and seen how they sweat?” explained Paul Hayes, a safety expert at Ascend Ltd. This condensation built to high enough levels to trigger the fire alarm which eventually brought the plane to the ground.
Talk about a wild produce ride!
UNITED STATES - The Dow Jones and S&P 500 hit historic highs on Tuesday, giving those in the produce industry much to celebrate.
As of 12:37 PM ET, the Dow is up 0.5% to 18,049, while the S&P 500 is up 0.2% to 2,083.
According to USA Today, the U.S. economy grew at its fastest pace since 2003 in the third quarter on stronger consumer and business spending. Subsequently, the final estimate of the U.S. gross domestic product (GDP) for the third quarter expanded at a seasonally adjusted annual rate of 5% in the three months ended September 30, easily beating the previous estimate of 3.9%. Consumer spending similarly rose by 3.2%, higher than the 2.2% previously estimated.
On hearing this news, analysts and investors were elated by the strong boost in GDP and consumer spending.
“That is a solid number, that is really what you want to see, you want to see it in demand,” Jack Ablin, Chief Investment Officer at BMO Private Bank in Chicago, told Reuters. “That is a huge plus, a five handle on GDP is astounding to me, but I’m not going to turn it away – Merry Christmas.”
Scott Keifer, Global Investment Specialist at JP Morgan Private Bank in Orange County, CA, agreed, telling Reuters, “You are going to see the consumer spending number continue to inch up and get better and better as we continue on in this expansion.”
The dollar also hit an 8-year high following the revised GDP report. According to Reuters, the dollar index was trading up 0.36% at 90.093 .DXY, its highest since April 2006. Importers in the industry will have the advantage of trading behind the backing of a stronger dollar.
Can we expect to see further gains heading into the new year? Reuters anticipates trading volume to be light due to the Christmas holiday, which could increase volatility. Regardless, today’s record highs are sure to spread some cheer this week.
Stay tuned to AndNowUKnow as we continue to track the Dow.
STOCKTON, CA - Grower Direct is championing asparagus this year as a key driver for increased Winter sales. Despite challenging weather conditions in Mexico and Baja, the grower's skilled team has persevered and current estimates project a crop which should be 40% higher than volume from last year. This accomplishment would put them in serious contention for being the 2nd largest asparagus grower in the United States.
Grower Direct is not content, however, to rest on its accomplishments. Rather, the grower is carrying its message forward to retailers, demonstrating the strong value proposition its produce offers.
“Every year we strive to offer a stronger product to our retail partners,” Jim Hanson, Managing Partner of Grower Direct, shared with me. “Our '3 Day Rule' sets an internal company standard which retailers can rely upon. Grower Direct works to ensure that no more than 3 days pass between the time of harvest and the point of sale. For a category like asparagus, which requires consistency and quick turnaround for strong sales numbers, our policy serves as a valuable tool for retailers looking to drive produce sales.”
“Freshness comes first at Grower Direct,” he continued. “Together with our emphasis on pricing our produce at a point which facilitates quick sale, we seek to give our retail partners the tools they need to succeed. That starts with asparagus.”
Today, Grower Direct focused on Caborca where the season is set to kick off in January. Production is expected to come in ahead of schedule and together with production from Baja, the size of this year's harvest will ensure that there will be more than enough supply to meet market demand.
Congratulations on a great season, Grower Direct!
Paul Kneeland, Vice President of Produce, Floral, Seafood and Meat for Kings Food Markets, has been featured in the latest edition of AndNowUKnow’s print publication, The Snack Magazine. Paul discussed the Kings difference and the company’s latest expansion and rebranding efforts.
Check out The Snack article by clicking here, or read the full article below:
Paul Kneeland: Crown Jewel of Jersey
“When you are in a constant state of improvement and enriching your personal and professional experiences, you can only really succeed,” Paul Kneeland, Vice President of Produce, Floral, Seafood, and Meat for Kings Food Markets, tells me. Paul jumped on board the East Coast powerhouse in 2007 and seven and half years later, he is helping to fuel the company’s efforts to rebrand with its foodie, fresh forward message.
“I have always been drawn towards produce and the possibilities of really great food. The leaders at Kings have this wonderful creativity and zest for all things delicious. As a consumer walks into the store they may not have predetermined their dinner spread, what’s on the menu for this weekend’s BBQ, or what fresh seasonal produce they’ll want to stock in the fridge,” Paul notes. “This is where we come in, or rather, how we address the customer from the door in.”
Now a part of Kings Food Markets’ new strategic plan to refresh the 80 year-old grocery format, Paul is forging a path for converting the unique grocery format into a foodie-inspired platform.
“It’s important for us to look and taste good,” he tells me. “The entrance to each location is prime real estate for communicating Kings’ priorities to our foodie audience and our latest endeavors are showcasing produce and perishables front and center.”
“It’s something we like to call the Kings Difference. We don’t just tell you that we make our selections daily, but convey the message through our presentations and attention to perishable offerings,” Paul notes.
Paul got his start at Roche Bros. in Boston, where the now-produce exec was born and raised. In 1981, Paul started as a grocery bagger, and by the time he wrapped up his 26 year stint at Roche and made his way to his current gig at Kings, he was carrying the title of Produce and Floral Director. Currently, Paul is also the President of the Eastern Produce Council.
Paul not only oversees the work he loves, he also writes about it. The produce exec is a Featured Columnist for Gardener News, a role he took on in 2007, writing for columns such as "King of Produce," a feature on healthy eating using fruits and vegetables, as well as "Passionate about Produce.”
“It’s been a great journey,” Paul tells me. “I have been at every rung of the ladder…bagger, maintenance, night crew for grocery, you name it.” Paul got his foot into perishables at Roche Bros. right after high school and became the youngest individual to hold a position there, in produce. He also became the company’s first Produce Merchandiser.
During Paul’s time at Roche, he had the opportunity to work under Tom Murray, the current Vice President of Produce and Floral for Roche Brothers Supermarkets. “Tom was one of my first mentors in the industry. He’s been with the company for 40 years and he imparted an amazing amount of knowledge on me as I was trying to get my bearings in fresh produce. I followed Tom up the ladder and he helped pave the way for my success,” Paul tells me.
Paul’s passion for produce is only matched by his passion for running, something that helps him stay focused and fit for his 12 hour work days. “Luckily, with Smartphone technology, I am able to work even later… well into the evening and on weekends,” he laughs. The avid runner currently has 3 marathons under his belt including the NYC Marathon and numerous half marathons, 10ks, and 5ks.
“My wife was really the driving factor when I started running. She was doing a triathlon one day, and I went down to watch and support her. I ended up volunteering at the finish line, and next thing you know, I had the itch for running,” Paul reflects.
Growing up in the Roslindale area of Boston, Paul is a die-hard hockey fan as well and considers the Bruins his go-to team. When I ask him about the Red Sox, he tells me, “I was a life-long Red Sox fan, until there was this one game…” We laughed and left it at that.
His drive to stay on top of the game is constantly being re-imagined in the fresh produce department. “Keep things interesting,” he notes. How does that translate for Kings? The company provides the “strange” and the “funky” in the produce category while also offering recipes for everything from artisan sandwiches to spicy shrimp and cantaloupe kabobs.
Kings is always striving to stay in the “know.”
“Stay on top of the trends,” Paul notes. “Maybe more importantly, try and get ahead of them. The company’s ‘store prepared’ concept goes beyond just fresh cut fruit, but also prepares ready-to-eat and ready-to-cook ingredients that can be combined to create a dish, or be the dish.”
Take kale, Paul says. “We used to use kale as an afterthought, a garnish on a dish or something we added to decorate the meat cases. Now, we can’t keep it on the shelf. Staying in front of trends shows our dedication to enhancing the food experience.”
Or what about dragon fruit? It took years to find it at a local grocery store here in the states. Paul tells me that where some stores don’t want the hassle of “shrinking it out,” Kings has made a way to keep a steady demand for such exotic items.
As the retail grocery market continues to gain momentum and competition, Kings’ evolving message is ensuring the retailer remains situated at the top. “The best thing about us is that we will never be complacent, there is always an opportunity for growth and improvement,” Paul says.
“Our priorities are always going to align with industry growth and developing our competitive edge,” Paul notes. “But not at the expense of the consumer.”
This level of care isn’t an abstract philosophy for Paul, but a notion he addresses himself in each project and at every level of the business. Paul will be the first person at a store remodel to walk up to a display and start constructing or deconstructing it to meet the demands of the new concept. And from what we have heard from produce suppliers, actions like this are contagious. Paul’s hands-on approach earns the respect of all the people in his company, from the part-timers all the way to Kings’ executives. Suppliers tell us that a partner like Kings is what they have been looking for, an exciting regional chain that forces everyone to sharpen up.
In an industry where everyone is looking for a piece of the pie, Kings strives for the moment when it all just comes together; a place where quality meets flavor and inspiration meets availability. If you are looking for a piece of the action, check out this New Jersey grocer, where inspiration strikes.
BELLINGHAM, WA – With Haggen's recent acquisition of 146 Safeway and Albertsons stores, the Pacific Northwest retailer is expanding its footprint from 18 to 164 stores across Arizona, California, Nevada, Oregon and Washington. With the anticipated growth, we decided to take a deeper look at this soon-to-be West Coast player. Here are 5 things you should know about Haggen.
CEO
According to a press release, CEOs John Clougher and Bill Shaner will lead the company. Clougher, CEO, Pacific Northwest, will have the primary responsibility for the northern division of Washington and Oregon. Shaner, CEO, Pacific Southwest, will have the primary responsibility for the southern division of California, Nevada and Arizona. After the close of the transition in early 2015, the two CEOs plan to convert all 146 Safeway and Albertsons stores to the Haggen banner in phases during the first half of 2015.
Fresh Produce
Haggen has developed a large network of farmers across the Northwest to supply its stores with fresh seasonal produce offerings. According to the company’s website, Haggen works hard to source produce from hyper-local farmers when possible. On the news of the acquisition, John Caple, Chairman of the Haggen Board of Directors and partner at Comvest Partners, reiterated this commitment saying, “We will continue our focus on sourcing and investing locally even with this exciting expansion.”
Suppliers
As we previously reported, Unified Grocers has entered into an agreement with Haggen to become the retailer’s primary and preferred supplier for all of the new California, Nevada and Arizona locations. Unified, along with Supervalu, will also act as a key supplier in the new Oregon and Washington store locations as well.
Origin
According to the Orange County Register, Ben Haggen (rhymes with Reagan), Dorothy Haggen and Dorothy’s brother Doug Clark founded the store in 1933 during the Great Depression with just $1,100 (approximately $19,500 today) in Bellingham, Washington. The company is now Washington’s sixth largest company. Ben and Dorothy’s sons, Don and Rick, have served as co-Chairmen of the Board and maintain minority stakes in the company.
Ups and Downs
Seattle Business reported that Haggen was hit hard during the economic downturn, with revenue sliding to $740 million in 2009 from $844 million in 2008. In 2011, Haggen family members gave majority ownership to private investment firm Comvest Partners. Between 2011 and 2014, the company closed nearly a dozen stores. Then, Haggen announced that it would be acquiring the 146 new stores this month.
Stay tuned to AndNowUKnow as we continue to track the trajectory of this retailer.
SANTA PAULA, CA – Limoneira has promoted Mark Palamountain to the position of Senior Director, Agricultural Operations.
“With our continued growth in the agriculture arena here and abroad and to keep Limoneira’s great team coordination together, Mark’s skill will be important as we move forward,” said Alex Teague, Limoneira’s Chief Operating Officer and Senior Vice President.
Before receiving this promotion, Mark served as Director of Business Development and Business Integration since August 2013.
“We have set aggressive goals for our Agricultural Operations,” said Harold Edwards, Limoneira’s CEO. “Our teams in Northern and Southern California are strong, and recent acquisitions in Arizona and Chile have integrated very successfully. Mark has demonstrated great skill over the past year to ensure plans are synchronized.”
Mark also served as Limoneira’s Director of Energy, Waste and Water projects. According to a press release, he was instrumental in the development of Limoneira’s solar installation, one of the largest private solar facilities in California.
Before joining Limoneira in 2011, he co-founded Perpetual Power, a renewable energy company with annual revenues exceeding $20 million. He also held senior positions at Broadpoint Securities, Thomas Weisel Partners and JP Morgan Chase.
Congratulations on the promotion, Mark!
FRESNO, CA – PureSense, a real-time irrigation monitoring company, has announced that it will be closing its service to growers at the end of the year.
The company stated in a letter to growers, “After eight years of being a market leader in real-time irrigation monitoring, PureSense, its Board of Directors and its primary investor have decided to shut down the business.”
The company’s primary investor has committed to keeping the servers up and running through at least the end of 2014. The sites will continue to collect data, upload to the company’s servers and translate through growers IMDesktop or IMWeb access.
According to the letter, there will not, however, be any PureSense field maintenance or field service provided going forward. Also, any sites that are down or not communicating will need to be self-serviced.
Click here for training videos regarding self-service.
Participating growers will be contacted in the next 30 days by an ‘assignee’ to discuss any outstanding transactions.
COMMERCE, CA - Unified Grocers has entered into an agreement with Haggen to become the retailer's primary and preferred supplier for all of the new California, Nevada and Arizona locations acquired from Safeway and Albertsons last week.
"Haggen was born and raised in the Pacific Northwest. Over the past 80 years we've grown to become one of the region's leading grocery chains," shared Bill Shaner, CEO, Pacific Southwest, Haggen, Inc. "This is a great opportunity to not only grow our presence in our home region but to take the Haggen commitment to quality and in-store guest experience to shoppers in the vibrant California, Nevada and Arizona marketplaces. In partnership with Unified — the West's largest wholesale grocery cooperative — we will continue to focus on something that has been central to our business all along: buying locally."
"This is an exciting opportunity for Unified to partner with a flourishing, dynamic member of the Unified cooperative, build on our already strong relationship and help Haggen grow its business," agreed Unified President and Chief Executive Officer Bob Ling. "It's great news for consumers, creating additional choice in the marketplace, and puts Unified in position to add significant business to the cooperative. The agreement will enable us to lower our costs of operation as the company benefits from economies of scale and ultimately provide better pricing for all our customers."
"Everything we do is designed to strengthen the trust and confidence our owners place in us every day, and the best way to accomplish that is to grow the business," Ling continued. "The fact we were able to agree to a deal of this size and scope demonstrates the company's strong fundamentals, flexibility and agility."
Together with Supervalu, Unified will also act as a key supplier of Haggen's new Oregon and Washington store locations. Its Market Centre subsidiary will be charged with supplying specialty products for all of these locations.
Stay tuned to AndNowUKnow for additional updates on Haggen and the Safeway/Albertsons sale.
FRIESLAND, WI – Alsum Farms & Produce Inc. is debuting its new Fast & Fresh! 24oz Microwave-Ready Gold and Red Potatoes this holiday season. This new product is expected to be a big hit in the produce aisle, offering on-the-go shoppers:
- Year-round availability
- Freshness and quality
- Triple-washed and ready-to-cook out of the bag convenience
- Quick 7 minute cook time
“Consumers are spending less time planning and preparing meals,” shared Heidi Alsum-Randall, National Sales and Marketing Manager of Alsum Farms & Produce. “Demanding lifestyles coupled with the desire for healthier meals make the Alsum 24 oz. Microwave-Ready Gold and Red Potatoes a convenient side dish for today’s busy consumers and millennial shoppers.”
The microwaveable/steamer segment for the fresh potato category has seen 30% dollar sales gains over the previous 52 week period ending September 27, 2014, according to Nielsen Perishables FreshFacts® data. Alsum is looking to capitalize on this growing trend with this new product.
Fast & Fresh! 24oz Microwave-Ready Gold and Red Potatoes also feature eye-catching steamer packaging intended to showcase the trust and expertise of the farmer, Larry Alsum, while protecting the potatoes from greening due to light exposure.
Currently available at select retail locations, Fast & Fresh! 24oz Microwave-Ready Gold and Red Potatoes will be marketed alongside Alsum Farms' full-line of conventional, organic and specialty potato offerings.
Great work, Alsum Farms & Produce!