Sun. December 14th, 2014 - by Christofer Oberst

LOS ANGELES, CA - A roaring tornado ripped through Los Angeles on Friday morning as the week’s deluge brought flash flood warnings, mudslides, and fierce winds throughout California. The twister spun through a 10-block span, damaging at least five homes and ripping off the roof of a duplex.

“It was crazy. It was crazy,” Jamie Mena, a Los Angeles resident who captured the event on film, told CNN affiliate KABC. “I am shaken up.”

You can see the impact of the tornado in the Mena's video, from CBS news affiliate WIBW, below.

The National Weather Service confirmed that the tornado ranked as an EF0 on the tornado damage scale, with wind gusts ranging between 65 and 85 mph. Tornadoes can get as strong as an EF5, with winds exceeding 200 mph.

“We’re going to call it a small tornado,” said National Weather Service meteorologist Eric Boldt, according to LA Times. “The damage was sporadic. That’s typical of a tornado.”  

While California tornadoes are not as rare as some may think, the amount of tornadoes seen in the Los Angeles basin is “comparable to what they get in the Midwest but it’s much weaker,” said Scott Sukup, a National Weather Service meteorologist.

Last week’s weather system, commonly referred to as a Pineapple Express, dumped an average of 2.5 inches of rain across the state, with approximately 3.46 inches of rain in San Francisco alone. Another 1 or 2 inches of rain is expected to hit the area by Wednesday. Statewide, reservoirs remain only about 58 percent as full as they usually are at this point in the year, the San Francisco Chronicle reports. Precipitation levels following last week’s storm were estimated at 18.3 inches in the northern Sierra Nevada mountain range.

Credit: Wired

The Los Angeles Department of Public Works noted that it had collected 1 billion gallons of rain on Friday, which officials say is enough to supply more than 30,000 people for a year. However, according to the California Department of Water Resources, the state will need six similar storms to fill its 12 major reservoirs and ultimately end the drought.

Wind speeds in Kern County topped at 89 mph, with 51 mph winds in the Bakersfield area on Thursday night and into Friday morning, resulting in one of the biggest storms to hit the region, according to CBS news affiliate KBAK.

Overall, though the storm elevated the amount of precipitation in the Sierras to about 145% of average for this time of year, snowpack is estimated to be at approximately 40% of average for the date, according to San Francisco Chronicle.

Showers are expected to continue throughout the week with California residents living on the coast anticipating about an inch of rainfall and about half as much on the Salinas Valley, according to Monterey Herald.

Last week’s downpour once again brought up the question as to whether we’ll see El Niño bring further storms to the state. As of December 4, 2014, the National Oceanic and Atmospheric Administration (NOAA) says there is an approximately 65% chance that El Niño conditions will be present during the Northern Hemisphere winter and last into the Northern Hemisphere spring 2015.

“We might be going into a weak El Niño this year, but it doesn’t tell us how wet of a year we’re going to have or how many storms we’re going to have,” said Sukup.

With all that said, the greatest of my peril here in Sacramento were a few puddles on the edge of the sidewalk and some scattered showers on my way to work. Still, I, like many other Californians, welcome any and all rain.  

Stay tuned to AndNowUKnow as we continue to track the California rain showers throughout the week.  

Fri. December 12th, 2014 - by Christofer Oberst

YAKIMA, WA - Over 6,000 Opal apples were given away earlier this month in New York as part of Giving Tuesday – a global day dedicated to giving back.

Keith Mathews, CEO, FirstFruits Marketing“After Black Friday and Cyber Monday, Giving Tuesday is a great counterpoint to focus on others,” said Keith Mathews, CEO of FirstFruits Marketing, exclusive distributor of Opal apples. “Giving is a core value of Opal so this event was a great way to give to others and also introduce them to this sweet, crispy apple variety and its purpose.”

Opal brand ambassadors gave away 5,000 bright yellow Opal apples from a life-sized constructed Opal tree and Opal backpacks in midtown Manhattan to raise awareness for the Opal Youth Make a Difference Initiative. In addition, 1,000 Opal apples were donated to the Sienna House, a family shelter in the Bronx, where they were distributed that week, according to a press release.

Opal Apples

Through its Youth Make a Difference Initiative, Opal funds youth-based initiatives serving communities in the U.S. where youth (ages 6-25) take leadership roles in the project. The initiatives must address food security and politics, nutrition, agriculture, or education. Last season, the grants amount to $75,000 with more funding anticipated for the current season.

Opal Apples

Opal brand ambassadors will continue to make appearances at events in Chicago, Houston, Minneapolis, Los Angeles, Seattle, and San Francisco.

Opal Apples

Youth Make a Difference

Fri. December 12th, 2014 - by Jordan Okumura-Wright

WASHINGTON - Three PACA violators in Texas and Michigan have been restricted from operating in the produce industry, according to a USDA press release.

JD Rodriguez Produce Inc., a Dallas, Texas-based company, has failed to pay a $28,801 award in favor of a Texas seller. Johnny D. Rodriguez, Valerie J. Rodriguez, and Esmeralda G. Rodriguez were listed as the officers, directors, and/or major stockholders of the business.

Sierra Brava LLC, a Hidalgo, Texas-based company, was barred for failing to pay a $17,056 award in favor of a Georgia seller. Jose A. Amezcua and Octavio Arcila were listed as members of the business.

Platabancol C I LLC, a Grand Rapids, Michigan-based company, has failed to pay a $51,471 award in favor of a California seller. Felipe E. Wated was listed as a member of the business.

In the past three years, the USDA resolved approximately 4,600 claims under the PACA involving more than $87 million. Individuals, include sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.

Agricultural Marketing Service

Fri. December 12th, 2014 - by Andrew McDaniel

FARGO, ND – A federal jury has found North Dakota potato farming brothers Aaron and Derek Johnson guilty of all felony counts of crop insurance.

The Grand Forks Herald reports that jury members unanimously found the Johnsons guilty of intentionally destroying crops to get unfair gains in crop insurance and federal disaster payments, which totaled to approximately $2 million.

Both brothers were convicted of conspiracy and false statements to the U.S. Department of Agriculture Risk Management Agency and to law enforcement on different occasions. Aaron Johnson was also found guilty of lying to the USDA Farm Service Agency.

As we previously reported, the brothers, who operated the North Dakota potato company Johnson Potato, were charged with conspiracy and making false statements. The defendants were accused of applying chemicals, including a substance known as "Rid-X" that's designed to dissolve solid materials in septic systems, while also adding spoiled and frozen potatoes to their stored crop. The actions resulted in the potatoes rotting. They then exploited the federal government’s crop insurance program.

Nick Chase, the Lead Assistant U.S. Attorney in the case, told the Herald that this successful prosecution is important because the USDA agencies and programs are “built on trust and that trust was broken in an extreme way, and they were flouting the law.”

Chase added, “A lot of people knew what was going on and didn’t approve. A lot of people came forward at great personal and professional cost. I view those people as heroes. I felt a lot of pressure to not let them down.”

The Herald also notes that the brothers have been ordered to have no contact with the approximately 20 witnesses in the prosecution's case.

Valley News reports that the Johnson brothers face up to 30 years in prison and millions of dollars in fines, restitution and criminal forfeiture. The sentencing hearing is set for March 9 at 1:30 p.m. in Fargo, ND. They were released on their own recognizance.

Fri. December 12th, 2014 - by Kyle Braver

STELLARTON, NOVA SCOTIA - Sobeys' parent company, Empire Company Limited, released a robust Q2 2015 financial report on Friday, December 12th, 2014, revealing across the board double digit increases in sales, EBITDA and net income. The impact of the recent acquisition of Safeway Canada played heavily into these gains, according to Marc Poulin, President and CEO of Empire.

Marc Poulin, President and CEO of Empire"We are pleased with our second quarter results and our progress year-to-date,” he shared. Growth in consolidated sales in the second quarter of 35.8 percent and in adjusted net earnings from continuing operations of 53.7 percent largely reflects the impact of the acquisition of Canada Safeway combined with Sobeys' sales and merchandising initiatives, including new and innovative commercial programs as part of the Company's purpose to help Canadians Eat Better, Feel Better, and Do Better.”

"We realized synergies from the Canada Safeway acquisition of $31.5 million in the quarter and are on schedule with our integration plan,” Poulin continued. “We remain focused on the ongoing promotion of our food-focused culture, while continuing to secure operational efficiencies and cost reductions across the organization."

Some highlights from Empire's financial report include:

  • A 35.8% increase in sales to $5,995.1 million.
  • A 64.8% increase in EBITDA to $324.3 million, compared to $196.8 million from last year.
  • A 49.6% increase in adjusted EBITDA to $332.2 million compared to $222.0 million from last year.
  • A 93.2% increase in net earnings from continuing operations, net of non-controlling interest, to $116.9 million compared to $60.5 million from last year.
  • A 53.7% increase in adjusted net earnings from continuing operations, net of non-controlling interest, to $128.2 million compared to $83.4 million from last year.
  • A 13.9% increase in adjusted EPS from continuing operations (fully diluted) to $1.39 compared to $1.22 last year.

Regarding Sobeys' performance specifically, some highlights from the Q2 2015 report include:

  • A 1.7% increase in same-store sales.
  • A 49.1% increase in gross profit to $1,480.9 million.
  • A 58.6% increase in Sobeys' EBITDA contribution to Empire to $301.5 million (5.03 percent of sales), compared to $190.1 million (4.30 percent of sales) in the same quarter last year.
  • A 49.5% increase in Sobeys' adjusted EBITDA contribution to Empire to $309.4 million (5.16% of sales), compared to $206.9 million (4.68% of sales) from the same period last year.
  • A 78.3% increase in net earnings to $100.4 million compared to $56.3 million in the same period last year.
  • A 50.7% increase in adjusted net earnings to $111.7 million compared to $74.1 million from the same period last year.

Congratulations on this strong showing in Q2, Empire and Sobeys!

Empire Company Limited

Sobeys

Thu. December 11th, 2014 - by Andrew McDaniel

NORTH DAKOTA – A jury in North Dakota is deciding the case against Aaron Johnson and Derek Johnson, two brothers accused of defrauding the federal government out of about $2 million.

As we previously reported, the brothers, who operated the North Dakota potato company Johnson Potato, were charged with conspiracy and making false statements. The defendants are accused of applying chemicals, including a substance known as "Rid-X" that's designed to dissolve solid materials in septic systems, while also adding spoiled and frozen potatoes to their stored crop. The actions resulted in the potatoes rotting.

ABC News reports that prosecutors claimed the brothers exploited the federal government’s crop insurance program, which is meant to help farmers recover from losses due to naturally occurring events like bad weather and the wet breakdown of inner potatoes after harvest.

Several farmers who grew near the brothers testified at the 8-day trial that they had good potatoes that did not spoil during the time the brothers were being reimbursed. Speaking to the jurors, Assistant U.S. Attorney Clare Hochhalter said, “They looked for weaknesses in the system when the farmers who testified looked for faith in the system.”

At the trial, defense attorneys told jurors that prosecutors have no hard evidence against their clients and claimed that the key witness against the brothers is a convicted felon with no credibility.

For now, it is up to the jury to decide. Stay tuned to AndNowUKnow as we continue to follow this case.

Thu. December 11th, 2014 - by Kyle Braver

WENATCHEE, WA - With KIKU® apples set to return this coming January, Columbia Marketing International (CMI) shared the story of how one longtime fan lost 42 pounds just by eating one KIKU® apple every evening.

“I absolutely love these super sweet apples,” said Melinda Geda of Florida, noting that their flavor also helped control sugar cravings all while delivering beneficial nutrients. “I know drinking a lot of water helped me on my weight-loss journey, but KIKU® apples were the answer.”

Sales for the apple continue to be strong and shipments have already begun from CMI's growing partners. According to a press release, shoppers are willing to spend more to purchase premium KIKU® apples despite an average retail price approximately 40% higher than the category average for all apples.

In fact, data from the Nielson Perishables group indicates that sales for the KIKU® apple skyrocketed by over 300% between January 1 and February 1, 2014. Sales maintained momentum into February and remained at peak levels through mid-March. Last year, KIKU® sales did not fall back to the levels of early January until the first week of April.

Steve Lutz, Vice President of Marketing, CMIShipments are set to begin starting the second week of January. As CMI gears up for another successful year, Steve Lutz, CMI’s Vice President of Marketing, shared his excitement regarding this most recent crop. “Overall we are very pleased with the flavor profile of this year’s KIKU®,” he said. “Consumers will be happy with the vibrant red striping that they have come to expect with KIKU® and their incredibly sweet flesh.”

CMI notes that North American availability along with KIKU® apples available out of the Southern Hemisphere in the Spring and Summer months may eventually lead to a year-round program with tonnage increases as new orchards begin to produce more fruit each season.

CMI expects to ship U.S. grown brand KIKU® apples through March this season.

CMI

Thu. December 11th, 2014 - by Andrew McDaniel

IRWINDALE, CA – Ready Pac Foods, Inc. has named Cary Okawa as its Vice President and Corporate Controller. In this role, Cary will be responsible for the accounting operations of the company and will work closely with Ready Pac’s Chief Financial Officer, Sally Erickson.

According to a press release, he will also ensure quality financial reporting and the safekeeping of accounting records and company assets as well as maintaining internal controls and budgets.

Most recently, Cary served as the Vice President and Corporate Controller at Newport Corporation. In that role, he assumed global responsibility for financial reporting, planning and analysis, SEC/GAAP compliance, shared services and enterprise risk management.

He is joining Ready Pac with more than 24 years of finance and accounting experience, having developed his skills with companies like Newport Corporation, Ceradyne, Advanced Medical Optics and Tektronix.

He earned a Bachelor of Business Administration with a major in Accounting from the University of Hawaii. According to a press release, when he obtained his accounting certification, the results of his CPA Exam earned him the #1 ranking in the State of Hawaii.

Congratulations on this new position, Cary!

Ready Pac

Thu. December 11th, 2014 - by Jordan Okumura-Wright

CINCINNATI, OH - Kroger's Chairman of the Board, David B. Dillon, has announced his intention to retire from his position at the end of the year. When he steps down on December 31st, putting a capstone on 38 years of exemplary to the retailer, CEO Rodney McMullen will be assuming Dillon's former position as Chairman.

Rodney McMullen, CEO

"For Dave, Customer 1st– which truly put our customers at the center of how Kroger runs its business – was more than a successful business strategy," McMullen shared. "It was a philosophy that he believed and lived through his actions every day, and as a result he inspired thousands of our associates during his many years of service to Kroger and Dillons Companies. He understood that Kroger's greatest asset is the trust that our customers, associates and shareholders have in our company. We are all the beneficiaries of Dave's extraordinary leadership."

This was the second major change to Kroger's Board of Directors announced that day. According to a press release, Nora A. Aufreiter was also elected to the Company's Board of Directors during this period of decision making. 

David Dillon, Chairman of the Board (credit: Empora State University)"We are delighted to welcome Nora to Kroger," Dillon shared. "With her broad business experience and consumer and digital expertise, Nora will be a great addition to Kroger's Board."

McMullen, who has served on Kroger's Board since 2003, has worked closely with Dillon over the course of his career with the retailer. During their time together, the two were instrumental in crafting Kroger's Customer 1st Strategy through their creation of a long-term price investment strategy for the retailer. This strategy allowed Kroger to deliver sustainable business growth and shareholder returns, while saving shoppers $3 billion annually through price cuts. This laid the foundation for the growth plan Kroger revealed in October 2012, which expands the Customer 1st Strategy by:

  • Accelerating growth in Kroger's core business
  • Improving customer connections
  • Expanding Kroger's retail presence in new and existing markets
  • Innovating in order to foster unique competitive positioning going forward

Dillon also worked to establish Kroger as a leader in sustainability, working to reduce energy consumption in stores by 35% since 2000 and its carbon footprint by 4.4% since 2006. Today, over half of Kroger's manufacturing facilities are zero waste operations.

According to a press release, Dillon served as Kroger's chairman from 2004 to 2014 and as CEO from 2003 to 2013, before which he held a variety of executive positions with Kroger and Dillons Companies. Kroger and Dillons Companies merged in 1983.

AndNowUKnow would like to wish Dillon the best in this next exciting phase of his life!

Kroger

Thu. December 11th, 2014 - by Christofer Oberst

HOUSTON, TX - A New York Post report released today claims that Sysco is selling assets worth $5 billion to Performance Food Group in an effort to win regulatory approval from the Federal Trade Commission (FTC). This is equal to approximately one-quarter of US Foods’ revenue.

According to New York Post, Sysco had initially agreed to sell assets with $2 billion of revenue in the December 2013 merger agreement.

Rumors had initially suggested that aside from Performance Food Group, Sysco had also been in negotiations with Reinhart Foodservice and Gordon Food Service to buy assets.  

Last month, Sysco announced that its impending merger with US Foods would be delayed as a result of the FTC discussions, but the company is still expecting to complete the merger before the end of the first quarter of 2015.

Stay tuned to AndNowUKnow for continuing updates.

Sysco

US Foods