CHARLOTTE, NC - Chiquita shareholders have terminated the merger deal with Fyffes and are now negotiating with Brazilian firms Cutrale/Safra following their most recent $682 million bid for the banana giant. The original merger, worth $1.07 billion, would have created the world’s biggest banana supplier.
Chiquita President and CEO Ed Lonergan made the following statement shortly after the shareholder meeting held today: “Given today’s results, we have determined to terminate the agreement with Fyffes and to engage with Cutrale/Safra regarding its revised offer. I want to thank David McCann and the entire Fyffes team for their efforts throughout this process. While we are convinced they would have been a strong merger partner, we will now go forward as competitors. We would also like to express our gratitude to Chiquita’s employees for their hard work and dedication on behalf of Chiquita and our customers.”
Some shareholder advisors, including proxy-advisory firm Glass Lewis Co., voiced their opinion on Cutrale/Safra’s acquisition deal. Glass Lewis Co., in particular, had suggested that Chiquita shareholders vote down the merger with Fyffes and consider other options, including operating as a stand-alone company, according to Wall Street Journal.
This decision effectively shuts down a merger that was three years in the making. An SEC filing made earlier this year illustrates that in 2011, Chiquita had apparently been exploring various merger options with Fyffes as it announced its move to a new headquarters in Charlotte, North Carolina.
Cutrale/Safra’s bid values Chiquita at $14.50 a share. The revised offer represents “the highest comparable transaction multiple for an acquisition of this scale in the fresh produce sector based on the EBITDA multiples of comparable transactions,” Cutrale/Safra said in a statement, according to Reuters.
While a definitive agreement has not yet been reached with Cutrale/Safra, Chiquita expects to update the market with any further information unless and until the Board has reached a final decision.
As of 1:08 PM ET, Chiquita's stock is up $0.39 to $14.15, a 2.83% increase. Meanwhile, Fyffes' stock is down $6.15 to $74.85, a 7.59% decrease.
Stay tuned to AndNowUKnow as we continue to bring you the latest on any Chiquita merger updates.
WASHINGTON D.C. - José Andrés, the Chef and entrepreneur behind George Washington University's soon to open Beefsteak restaurant, has a new vision for the future of the fast casual dining industry, and it's one headlined by fresh produce. Andrés believes that broccoli and cauliflower can easily upstage fast-food classics like burgers and fries. In fact, Beefsteak is modeled on this vision of vegetable-focused, quick-eating fare.
“[Take] a so-so vegetable, boil it in water, add some salt, it’s delicious,” he told the Portland Press Herald. The Beefsteak pitch is a simple one: “We don’t like to call it vegetarian. We want to call it tasty, fun, sexy, good-looking.”
What about meat? “It’s a side dish,” he says.
Andrés isn't the only chef taking this veg-centric vision of fast-casual dining to the next level. Chef Richard Landau of Philadelphia's Vedge shared a similar philosophy with the Portland Press Herald.
“Vegetables are moving from the side of the plate to the center of the plate,” he explained.
At Vedge, produce is given “the meat treatment.” Salt-baked kohlrabi with pho-spiced rice enjoys the same kind of exquisite care another chef at a traditional restaurant might give to a cut of steak or chicken. The key is to normalize vegetable-centric foods, to make them palatable to the on-the-go consumer that might frequent McDonald's and Burger King on a typical lunch break.
“We shun the word ‘vegan’ because it comes with a lot of preconceived notions,” Landau elaborated to the Portland Press Herald. “They think there’s a bunch of stoned hippies back there listening to the Grateful Dead, stirring vegan chili and kale salads.”
In the process, these chefs strive to bring vegetables front and center, fleshing them out as a category that can carry a menu all on its own.
“We’re not trying to have a mock meat. We’re not trying to mimic meat,” agreed Dirt Candy’s Owner and Chef, Amanda Cohen. “It’s its own cuisine, and it’s really coming into its own right now.”
Talk to Andrés and you'll realize he sees this movement only growing.
“I’d prefer to have the army of great chefs we have in America opening multiple restaurants,” he says. “More than the McDonald’s and Burger Kings of the world opening restaurants.”
A veg chef army sweeping the country? That's certainly a future I'd sign on to.
The following text was copied verbatim from a Concord Foods press release:
BROCKTON, MA - Concord Foods is introducing a new addition to its line of fruit dips – GINGERBREAD FLAVORED CARAMEL DIP. This delicious, seasonal dip combines the taste of baked gingerbread with sweet, creamy caramel. It is perfect for dipping apples and other fresh fruit.
Consumers will be able to purchase the product in the U.S. starting in November 2014. The GINGERBREAD FLAVORED CARAMEL DIP will be sold in produce departments with apple displays. The product is packaged in attractive 10.5 oz. tubs. The suggested retail is $3.29/tub and is available to retailers in 12 pack cases and 32 pack shipper displays.
MISSISSAUGA, ON - After investing over $6 billion in its Canadian operations, could Target be considering withdrawing from the Canadian market? Retail Analyst Perry Caicco of CIBC World Markets suggests that if its market doesn't shape up by the end of 2015, it very well might.
“[So far] we have seen few examples of remarkable improvements,” he remarked. “The shelves and displays do not appear to be stocked much better, the pricing and value strategy make little sense to us, and there are few exciting new programs in most parts of the store.”
“Target has been a disaster in Canada, producing sales at about half of our initial projections, and running deep operating losses,” he concluded.
According to the Globe and Mail, Target executives attribute much of these early struggles to overzealousness when launching Target's Canadian expansion in 2013. 124 stores in one year proved to be too much too quickly and resulted in operating profit losses of almost $1 billion on sales of $1.3 billion. Similar ill news carried over into 2014, during which Target opened 9 more Canadian locations, but watched as its operating losses grew 11% to $415 million during the first fiscal half of the year. In Q2 2014 same-store sales at locations open at least one year fell 11.4%.
In all, Caicco predicts that Target will lose about $1.2-billion in its first two years of operations in Canada, according to the Globe and Mail. If this trend is not reversed, he argues that the best course of action might be a departure.
If Target does leave, the most likely suitors for its hundreds of retail locations would seem to be fellow retail giants Wal-Mart and Loblaw, although Shoppers Drug Mart and Hudson's Bay Co. have also been included in speculation, according to the Globe and Mail.
For now however, Target Spokesman Eric Hausman revealed that Target's focus is on ending 2014 on a strong note through the holiday season and carrying that momentum into 2015.
"Target's focus is on driving improvements to the business, and as we have shared previously, we look forward to continuing to assess our progress, the work ahead, and the opportunity in the Canadian market,” he shared in an email with the Globe and Mail. “With the fourth quarter just around the corner, our teams are focused on ensuring we offer guests an exceptional shopping experience this holiday season."
If Target does decide to hold an asset sale, he shared that the retailer would certainly work to retain a Canadian presence and “try to squeeze some value from this tough decision.”
Stay tuned to AndNowUKnow for future updates on Target's Canadian operations and the strategic operating decisions the company makes going forward.
WENATCHEE, WA - At this year's PMA Fresh Summit Convention and Expo, CMI won a PMA Impact Award for Excellence in Packaging with its new Go-Go Fresh cherry snack pouch bags.
“With Go-Go Fresh snacking cherries, CMI created the first single serve cherry package designed specifically for the convenience store channel,” said Steve Lutz, VP of Marketing for CMI. “We were pretty certain if we created a fixed weight single serve package for cherries we could leverage the seasonal power of cherries to drive incremental sales through convenience stores, a largely untapped market for the industry. We’re delighted that the PMA Impact Awards recognized the power and creativity of our new package by naming CMI as one of the 2014 winners.”
CMI explained how, unlike traditional retail locations, convenience stores require smaller fixed weight packaging in order to fit in the small square footage space available and capitalize on the quick trip nature of the format.
“We have been consistently hearing from consumers and customers that they really want convenient, on-the-go snack products for smaller format stores,” said Katharine Grove, Marketing Specialist for CMI. “We developed Go-Go Fresh cherries to directly target the convenience store channel to appeal to consumers looking for healthy food choices.”
She further shared that CMI used extensive consumer and retail feedback to craft the packaging. For example, it highlighted the keywords ”GMO free”, “Low-calories” and “Fat-Free,” which focus panels suggested would spur impulse purchasing.
According to a press release, “Go-Go Fresh” was one of 67 entries submitted by 56 companies for consideration. 20 finalists were selected by an independent board of judges and announced last September, of which only five were named PMA Impact Award winners.
Judges evaluated all PMA Impact Award entries based on:
- Marketing
- Sustainability
- Consumer Convenience
- Supply Chain Efficiency/Functionality
- Food Safety
Congratulations on winning this award, CMI!
The following story was copied verbatim from a press release:
WASHINGTON D.C. - The holiday rush is coming early, very early, this year for mushroom growers and shippers. Data just released shows that July, normally the slowest month of the year, set a new record high for the month and hit a level normally seen during the heavy holiday season.
Demand continues to grow at a steady pace, according to Mushroom Council statistics. At the current rate, the forecast through 2014 is for 20 percent growth over the past five years, an increase of nearly 30 million pounds each year. Retail sales remain strong, with foodservice operations and schools embracing the ‘blendability’ concept of adding mushrooms to popular meat entrees. Throughout the fall, mushroom supply has struggled to keep up with the growing demand as farms in some areas of the country have encountered production challenges and labor shortages. Farm closures in the United States and Canada have also impacted the volume of mushrooms available.
“It all starts with creating the composted growing medium for the mushrooms,” said Laura Phelps, American Mushroom Institute president. “Growers had difficulty finding adequate raw materials and other setbacks which have led to lower crop yields. Also since mushrooms are grown in highly automated, climate controlled buildings, quickly adding extra capacity isn’t possible or as easy as plowing up a few more acres. As a result, product shortages may occur at least through the end of the calendar year.”
In addition to the increasing awareness of mushrooms as a superfood for overall health and wellness, ‘blendability’ – combining ground mushrooms with ground meat – is striking a chord with consumers and foodservice operators. One major school foodservice supplier recently noted that after being introduced just last year, blended burgers now make up seven percent of all its beef patties sales to schools. Seven different mushroom and meat blended items are available, from taco filling to Bolognese sauce. With beef prices continuing to escalate, blending with mushrooms is a cost effective option – in addition to offering nutritional and flavor enhancements.
OTTAWA, ON – CPMA has revealed Wal-Mart Canada will be joining it as the first major retailer partner for its new Half Your Plate healthy eating campaign. According to a press release, the Half Your Plate campaign was a big hit on social media when it launched this past summer and is now moving into its next phase where it will be incorporated onto produce packaging and into retail locations across Canada. CPMA shared its excitement to have Wal-Mart join this effort.
“Rather than having people count servings or worry about serving size, our messaging is that at every meal, make half your plate fruit and vegetables. By the end of the day, you’ll have your recommended number of servings,” said Ron Lemaire, President, CPMA. “That also translates when you’re at the grocery store. Half your cart should be fruit and veggies, and having retailers promote the campaign re-emphasizes the importance of making healthier choices at the store.”
“We are excited to be the first major retailer to promote Half Your Plate in our stores and flyers,” agreed Sam Silvestro, Senior Director, Fresh Foods, Wal-Mart Canada. “We believe that healthy eating starts with getting enough servings of fruits and vegetables every day, and Half Your Plate provides an easy message for consumers to understand and keep in mind when doing their grocery shopping.”
The Half Your Plate campaign seeks to address an important nutritional deficit in Canada. The average Canadian only consumes 3.5-4.5 servings of produce each day, significantly less than Canada’s Food Guide's recommendation of 7-10 servings per day (depending on gender).
By encouraging consumers to break eating down and look at nutrition one meal at a time, analyzing the composition of their plate rather than specific servings, Half Your Plate offers a simple, consistent way to navigate the often conflicting nutritional information consumers may encounter in everyday life.
“It can be a bit confusing for some consumers to know what makes up a healthy meal,” Lemaire explained. “What we hear most from consumers is that they’re struggling with what a serving is in a lot of instances and are looking for ways to make healthy choices fast, easy and affordable.”
The success of this program would mean a healthier population as well as vastly expanded sales totals for growers and retailers. Now Wal-Mart Canada will be bringing its immense market share and influence to bear in making it a reality.
Congratulations on successfully coming together for this important cause, CPMA and Wal-Mart Canada!
CHARLOTTE, NC - Just days after their latest offer was rejected, Brazilian firms Cutrale/Safra have yet again raised their offer for Chiquita to about $682 million (before interest, tax, depreciation, and amortization), an approximate 4% increase from their previous $658 million bid. The offer is valid until October 26, with no assurance made that the new bid would be extended even if Chiquita’s shareholders’ meeting on Friday was “adjourned, postponed, suspended, placed into recess, canceled, or delayed.”
Chiquita has since acknowledged receipt of the new bid, saying in a statement that the Board of Directors will “carefully review and consider the revised Cutrale/Safra offer.”
In after hours trading, Chiquita’s stock was up $1.02 to $13.76, an 8.01% increase as of October 23, 2014 at 4:03 PM ET.
According to Reuters, Fyffes and Chiquita said that the implied present value of their deal ranges from $15.46 to $20.01 a share. In comparison, this latest bid from Cutrale/Safra values Chiquita at $14.50 a share.
The revised offer represents “the highest comparable transaction multiple for an acquisition of this scale in the fresh produce sector based on the EBITDA multiples of comparable transactions,” Cutrale/Safra said in a statement, Reuters reports.
Firms including Wynnefield Capital and Institutional Shareholder Services (ISS) voiced their opinion shortly following the announcement of the new bid. Wynnefield Capital, which holds 3.5% of Chiquita’s shares, called the increased offer “significant,” according to Reuters. Similarly, ISS said that the bid may be “more compelling to some shareholders,” though it had initially recommended a deal with Fyffes.
In a letter to Cutrale/Safra, Chiquita had declined the former $658 million bid, calling it “inadequate” and “not in the best interest of Chiquita shareholders.” Will this new offer be enough?
Stay tuned to AndNowUKnow as we continue to bring you the latest on any Chiquita merger updates.
WATSONVILLE, CA – New Go Greener!™ clamshells are the latest packaging innovation by Sambrailo Packaging. Introduced at this year's PMA Fresh Summit, the clamshells are made from 100% post-consumer recycled PET extracted from clear and green beverage bottles. The bottles give the clamshells the green translucent color key to capturing the attention of organic consumers at the retail aisle.
“More than 33 million pounds of green plastic could be reused in one year,” explained Sara Mailhot, Product Development Manager for Sambrailo Packaging. “This statistic is hypothetically based on all CCOF-certified organic strawberry growers in the U.S. and Mexico using the Go Greener! 1 lb. clamshells for one year, so the real potential could far exceed this number as sales grow and the product line increases.”
The bottles used to make this packaging, which would formerly have been food for landfills, can now be recycled thanks to Sambrailo Packaging's unique manufacturing process. This process complies with all FDA, Association for Postconsumer Plastic Recyclers, and Canadian recycling regulations and gives environmentally conscious consumers a new reason to look for Sambrailo packed products when shopping. Luckily, they won't have trouble finding them because, Go Greener! clamshells are in fact the first green packaging for organic berries on the market, according to a press release.
The Go Greener! clamshells are currently available in the Mixim® Classic 1lb Friction-Lock, 1lb LV Button-Lock, and 6oz LV (5x5) sizes. Ideal for for strawberries, raspberries and blackberries, they can also be used for organic produce items. Recyclable film labels applied with a water-soluble adhesive are also available for these clamshells, letting growers double down on the sustainability theme.
Congratulations on this exciting new product release, Sambrailo Packaging!
ORLANDO, FL - The National Mango Board (NMB) is hosting its next domestic industry outreach meeting in Nogales, AZ on October 29, 2014. All industry members, including importers, wholesalers, and others who handle mangos in the U.S. are invited to share details about mango programs, updates, and results.
During the meeting, the NMB will discuss the Ripe and Ready to Eat Mango Initiative with ripening expert Dennis Kihlstadius from Produce Technical Services, according to a press release. Kihlstadius will share his findings and recommendations for stores and distribution centers from extensive testing of fruit temperatures throughout the distribution system. There will be an opportunity for guests to ask questions.
The meeting will be held October 29, 2014 at noon and can be found at the following address:
Holiday Inn Express
850 W. Shell Road
Nogales, AZ 85621
The meeting is designed to help industry members discuss how to improve mango quality and superiority in the U.S. and increase consumption. This meeting is also open to the public and lunch will be provided.