MEXICO - Controladora Comercial Mexicana (Comerci) is rumored to be closing in on a deal with Grupo Comercial Chedraui to sell the majority of its 200 retail locations for over $4 billion dollars to the rival company. While nothing has been finalized as of yet, a deal of this magnitude between Mexico's 4th-largest supermarket by market capitalization and its 3rd largest supermarket could have dramatic ramifications on the Mexican retail industry, and by extension the North American produce industry which trades heavily with it.
According to Bloomberg, sources have reported that under the current structure of the deal, Comerci would maintain ownership of the real estate and would lease it to Chedraui. Chedraui would use its own brand name on the stores it purchases.
News of this deal comes just under two months after Comerci's sale of its Restaurantes California and Beer Factory eateries to Grupo Gigante SAB for $80 million. With a price tag north of $4 billion, this new deal would easily dwarf its predecessor. Comerci is reportedly pushing Chedraui to fund the deal in cash.
Bloomberg notes that any deal of this magnitude would require regulatory approval from the Mexican government. Over the past month Comerci shares have risen 1.9%, while Chedraui’s have dropped 7%.
Neither company has as of yet issued an official statement about these negotiations.
Stay tuned to AndNowUKnow for future updates on this sale agreement and the Mexican retail industry as a whole.
LOS ANGELES, CA – 4Earth Farms is currently harvesting and shipping its first major crop from its new Kalettes™ program. Due to the high demand surrounding this new produce offering, 4Earth Farms expanded the acreage devoted to its Kalettes™ earlier this year. It is now in the midst of reaping the benefits of that expansion.
“Here at 4Earth we constantly strive to bring new and unique items to the marketplace while maintaining the highest of quality standards for our customers. Our testing of Kalettes™ crops began over 18 months ago, leading to our increased growing acreage following customer demand that far exceeded our expectations,” said Mark Munger, VP Sales & Marketing at 4Earth Farms. “We are thrilled to finally have the product on shelves and available in significant supplies to retail and foodservice across the US.”
According to a press release, Kalettes™, a cross between Russian Red Kale and Brussels sprouts with a light, peppery taste, are easy prep items which can be sautéed, roasted, or eaten raw with excellent results. Because of the immense popularity kale and Brussels sprouts have enjoyed in recent years, the excitement surrounding Kalettes™ has been very encouraging for 4Earth Farms.
“The response to Kalettes™ has been overwhelmingly positive and we are excited to be at the forefront of their availability to the market,” Munger said.
4Earth Farms will be offering Kalettes™ year-round from its farms along the Baja-Mexico peninsula. They will be offered in a 6oz size for retailers as well as a 3lb bag for foodservice use. In order to help support sales the grower will be providing its retail partners with POS support materials which answer many of the common questions consumers might have about this new product.
“With any new offering comes the task of educating customers on aspects of the product they may be unfamiliar with,” Mark Munger explained. “Making Kalettes™ POS materials available is our way of helping consumers get the information they want quickly and easily right there in the store.”
4Earth Farms shares that it has sample packs and pricing information available for any interested retail parties.
Congratulations on the start of this exciting harvest season, 4Earth Farms!
AUSTIN, TX – Whole Foods has rolled out its new “good,” “better” or “best” produce ranking system based on supplier farming practices to nearly 400 stores in the U.S. and Canada. AndNowUKnow previously covered the initial announcement of this program last year.
“After three years of research and planning, Responsibly Grown is the result of our collaboration with suppliers, scientists and issue experts to continue our strong commitment to organic, while embracing additional important topics and growing practices in agriculture today,” said Matt Rogers, Global Produce Coordinator at Whole Foods Market. “We are excited to broaden the conversation to recognize additional growing practices and drive more transparency in the industry.”
To receive a “good” ranking, the lowest of the three tiers, a farm must take 16 major steps to protect air, soil, water, and human health, according to a press release. Growers must also comply with the Responsibly Grown pesticide policy, which restricts growers to using only U.S. Environmental Protection Agency registered pesticides, regardless of the country of origin.
The full list of prohibited and restricted pesticides can be found on the Responsibly Grown website.
Now how will this affect growers and suppliers? To be ranked, suppliers will have to submit compliance information online. If that application is flagged for any reason, the company may be asked for additional documentation or on-site audits before ranking.
According to a press release, a “better” rating indicates advanced performance and a “best” rating indicates exceptional, industry-leading performance in a scoring system covering multiple topics in each of these key categories:
- Pest management (e.g. using beneficial insects to control pests)
- Farmworker welfare (e.g. providing protective equipment for workers)
- Water conservation and protection (e.g. using efficient irrigation techniques)
- Enhancing soil health (e.g. adding compost to soil; planting cover crops)
- Ecosystems and biodiversity (e.g. planting wildflowers to restore natural bee habitat for pollinator protection)
- Waste reduction (e.g. recycling plastics used in the field)
- Air, energy and climate (e.g. solar panels for renewable energy)
The ranking system will rate hundreds of products with key suppliers, which will be about 50% of its produce nationwide.
The Tennessean quotes Rogers as saying that this program shouldn’t result in higher prices for shoppers because they will feel better about what they’re buying.
It will certainly be interesting to see how sales and profits trend for Whole Foods with the roll out of this ranking system, and what affect it will have on suppliers. Stay tuned to AndNowUKnow for the latest updates.
CAMARILLO, CA – Houweling’s Tomatoes has been honored with a 2014 Cool Planet Award (Agriculture Sector) in recognition of its efforts in sustainability relating to energy conservation and efficiency.
“Houweling’s commitment to sustainability is rooted in the values established by Casey Houweling, our CEO. As a company, we believe sustainability must integrate environmental stewardship, with practical, commercially viable solutions that enhance our ability to grow and harvest fresh, flavorful, nutritious tomatoes,” said company CMO, David Bell.
The award recognizes Southern California Edison business customers for demonstrating exemplary leadership in energy and carbon management, according to a press release. Highlights from Houweling’s nomination include a 6.6 million kWh energy efficiency savings since 2010 and its 13.2 MW heat-and-power cogeneration installation in Camarillo, CA.
“I’m proud of our team and what this award represents. Taking a leadership position in sustainability is not without risks, headaches and challenges, but I believe it is the right thing to do,” said CEO Casey Houweling. “As business leaders, we need to continue to push forward, innovate and invest in projects that allow us to do more with fewer resources.”
Aside from the Cool Planet Award, the company was also a recipient of the California Energy Solutions Center (ESC) Partnership Award for Innovative Energy Solutions during the ESC Technology and Market Assessment Forum.
Houweling’s commitment to sustainability and conservation is only matched by its commitment to flavor. In the last 3 years, the company has partnered with seed companies and conducted trials over 100 new varieties.
According to a press release, those partnerships have led to the launch of new products like Houweling’s Signature Medley Snacking Tomatoes, Signature Heirloom Tomatoes and the decision to move 100% of its grape tomato acreage to a higher flavor, lesser yielding variety.
“In a competitive market with rising cost pressures, it is not easy to make a decision to take 10% less yield, but I firmly believe delivering a consistent, premium eating experience will ensure Houweling’s Tomatoes long-term success,” said Houweling.
Make sure to stop by booth #4532 at PMA Fresh Summit to check out this company’s latest.
Congratulations on these honors, Houweling’s!
WASHINGTON - It has been an exciting year for the SweetTango apple, with the 2014 crop proving to be the biggest and best quality ever harvested. Tim Byrne, President of Next Big Thing, A Growers’ Cooperative and exclusive marketer of SweeTango apples, sat down and talked with me about the unique apple variety and how 45 growers from Nova Scotia to Washington State are helping to enhance the program and the brand.
“Our program has grown so much in just a few years. In 2011 we sold around 150,000 bushels in the U.S. and Canada and this year we have already sold upwards of 450,000 bushels,” Tim tells me. “Qualitatively and size-wise, it has been an impressive crop for market.”
This year, retailers can look forward to a bonus month for SweeTango supplies. There will be greater availability through Thanksgiving with the increased inventory this season and the company is optimistic that supplies will last through November this year.
“New varieties do not come with an owner’s manual,” Tim laughs. But the Co-op has gone to great lengths to create consistency and a well-developed flavor profile for the SweeTango apple. “It is all hands on deck when it comes to the progress of the program. There are a lot of great scientists as well as 3 independent research companies in addition to our growers, who have helped us to achieve the characteristics of the unique varietal.”
I ask Tim if he has plans to expand acreage in the near future. “I tell people, let’s wait until we have a few really big crops under our belt,” he tells me. “I don’t want us to get ahead of ourselves even thought the demand is there. It’s important that we don’t diminish the pricing power of the brand, just to see revenue. There is a balance and a line to walk.”
SweeTango apples have 3 characteristics that help it to stand out from other varieties Tim notes. Visual appeal, texture and flavor. The bicolored SweeTango is especially in high demand for its aesthetic nature and eye-catching attributes. In addition, SweeTango apples have fairly prominent lenticels, which are the breathing pores on the skin. They help enhance the visual appeal of the fruit. “As the starches turn into sugar, a gas is emitted, and the gas has to escape the apple in order to uphold the quality,” Tim says.
The texture of the apple also adds to its eatability. The fracturability, he tells me, is verbal. “It screams back at you, and reminds you that an apple’s eating experience can be as satisfying to the ears at it is to the mouth. SweeTangos have such a crisp and clean bite, along with plenty of juice.”
Tim describes the flavor of the apple, almost in wine terms. “The first burst of flavor is right on the front of the tongue and brings rich, sweet tones. As you ingest the apple, there is another level which brings a wave of bright acidity that kicks in right on the back of the tongue and stretches and lengthens the flavor profile.”
With supplies still available, this is one apple I will be keeping an eye out for in the market.
INDIANAPOLIS, IN – Braga Fresh Family Farms will be joining The Produce Mom's Family of Partners in order to promote its Josie’s Organic brand. Together with the Produce Mom, Braga Fresh will be working to educate consumers on the value of its offerings.
“We’ve developed everything about the Josie’s Organics brand to help today’s busy moms and families eat more fresh vegetables and put healthier meals on the table, like my grandmother ‘Nonna Josie’ did for our family,” said Rod Braga, President and CEO of Braga Fresh Family Farms. “Lori is working to accomplish the same goals we are. We see our partnership with The Produce Mom as a great opportunity to educate a wider audience about the benefits of fresh, organic vegetables and give moms everywhere new, creative ideas for adding more vegetables into meals and snacks.”
Lori Taylor, The Produce Mom, further elaborated on how it was Braga Fresh's commitment to sustainable farming that helped draw her to the Josie's Organics brand.
“Sustainable farming isn’t just a buzzword for Josie’s, it’s been a way of life at the Braga home ranch since the 1920s—three generations,” she said. “I love that they use sustainability practices such as controlling pests by planting beneficial flowers to attract ‘good bugs.’ They combine these tried-and-true methods with new technologies such as GPS-equipped tractors and fuel-efficient engines to help conserve our national resources.”
According to a press release, Josie’s Organics offer consumers a full range of premium quality, USDA certified organic vegetables, such as beets, radishes, broccoli, celery, herbs, kale, chards, lettuce and greens.
Congratulations on joining The Produce Mom's Family of Partners, Braga Fresh!
This text was copied verbatim from a ShopWell press release:
On Saturday the 18th, during Fresh Summit, we will be announcing our partnership with PBH to provide content that reaches millions of ShopWell members. ShopWell’s objective is to help people understand which foods are best for their health goals. PBH’s rich trove of content furthers this aim by promoting fresh produce as a vital element of a healthy diet.
"PBH’s mission is to help people eat more fruits and vegetables, as this is a well known path to better health.” said Elizabeth Pivonka, Ph.D., R.D., President & CEO of Produce for Better Health Foundation. "Our partnership with ShopWell gives us a powerful new channel to reach more shoppers with timely, helpful, personalized guidance wherever they are – in the aisle or in the kitchen. ShopWell is blazing a trail to use digital tools to make a positive impact in changing the way people eat for better health."
We would love to talk to you about the partnership as well as how ShopWell is helping growers, retailers, and food manufacturers understand the quickly changing retail environment, from shopper demographics to shelf space optimization.
CHINA - Costco will soon be entering the Chinese market for the first time thanks to a new partnership with e-commerce giant Alibaba. According to Forbes, America's largest warehouse chain will be opening a store on T-Mall, one of the online marketplaces which Alibaba owns and operates. This will allow Costco to market its wide line of consumer products to the immense Chinese market at “highly attractive” prices, all without opening a single physical store in the country.
“Costco sees tremendous growth opportunities in China, especially in light of Chinese consumers’ increasing appetite for imported products,” shared Jim Murphy, Costco’s Executive Vice President, underscoring the tremendous upside potential of this Chinese retail play.
According to Forbes, it can take between 5-20 days to deliver these goods to a Chinese consumer after a purchase is made. Despite the wait however, Costco is confident that many foreign consumers will be attracted to the quality of its imported products. Forbes notes how recent scandals in the domestic consumer market, such as melamine-tainted infant milk formula, have pushed many Chinese consumers into the arms of importers. Costco hopes to be the biggest beneficiary of this trend.
In China Costco is slated to face stiff competition from Wal-Mart however. Wal-Mart owns a majority stake in Yhd.com, an online marketplace which sold 250 million imported items in 2013 alone. In addition, Wal-Mart has revealed plans to expand its current line of 10 Chinese Sam's Club locations.
As of today, Costco has declined to share whether it plans on building a physical store in the future.
Stay tuned to AndNowUKnow for future updates on Costco's expansion into China.
ORLANDO, FL – Darden Restaurants names Gene Lee as its new interim CEO following the Board takeover by Starboard. Lee, who has been Darden’s Chief Operating Officer for about one year, is replacing longtime CEO Clarence Otis.
Lee might not hold this post for very long. Jeffrey Smith, the Starboard CEO appointed independent, non-executive Chairman of the Board, told USA Today that the Board’s search committee will conduct “a full search for the next CEO of Darden.”
That could include some of the newly elected Darden Board of Directors including Brad Blum, a former CEO of Burger King and former Olive Garden President, and Jean Birch, a former President of IHOP Restaurants, according to USA Today.
Darden’s Board has also voted to add a 13th seat to the Board and appointed William S. Simon, a former CEO of Wal-Mart U.S. and former Darden Board member, effective immediately, according to a press release. “Darden has a solid foundation in place, and I’m excited to be a part of the new Board as we work to build on the current momentum and unlock the Company’s full potential.”
On Simon’s return, Smith commented, “My fellow Board members and I are pleased that Bill has agreed to return as a Director. As previously indicated, we were willing to consider the right former director with the skill sets, experience and perspectives that would best complement the new Board members. Given Bill's extensive experience leading global consumer retail companies as well as his experience with companies in the restaurant, food and beverage industries, he certainly fits that criteria.”
USA Today reports that a Fitch Ratings report from this week said Darden "could look like a different company two years from now with new executive leadership, fewer brands and less real estate ownership." For the Olive Garden chain, the report noted that "significant work still needs to be done to drive sustainable same-restaurant sales growth."
Are these appointments enough the turn this embattled company around? Stay tuned to AndNowUKnow for the latest updates.
LEUVEN, BELGIUM - TOMRA has launched Falcon, a new cost-effective pre-sorter for the fresh cut industry.
The Falcon sorter processes high volumes and removes unwanted materials brought into the production line from the field. “Through the Falcon, we get rid of most defects at an early stage to ensure that the sorters further down the line can work at a higher efficiency rate and can assure a final product with an outstanding high quality,” says Roel Molenaers, Product Manager at TOMRA Sorting Solutions.
Check out the machine in action in the video below:
In this machine, flexible product handling is facilitated through the integrated infeed belt and spreading of all leaves, while the high speed ejection fingers accurately remove all foreign material, including the heavy defects. Its high resolution cameras detect different characteristics like chlorophyll level of the product to enhance a high quality final product, according to a press release.
With an easy to use and stable interface, the operator can make snap shots of the raw material and defects. “Thanks to this Set & Sort feature the sorting machine does not need to be monitored all the time,” added Molenaers.
The Falcon also meets stringent sanitary requirements and is designed to facilitate maintenance and sanitation. “Thanks to the Falcon and its pre-sorting focus, the washing water remains much cleaner for a longer time. This results in savings for our customer,” said Molenaers.
The company will reveal its Falcon belt sorter at Sial in Paris Nord Villepinte, France, from October 19-23 at booth E-232 in hall 7.