BENTONVILLE, AR - Wal-Mart is slashing the expected growth rate for its chain of big box supercenters by half. According to a press release, the retailer only plans on opening 60-70 of these stores in fiscal 2016, a notable decrease from the 120 new locations set for fiscal 2015.
Instead, Wal-Mart will be channeling the $6.1-$6.6 of billion capital investments it projects for fiscal 2016 into the expansion of its Neighborhood Market chain of stores. Wal-Mart has revealed that it plans on building 240 of its smaller format stores, such as Neighborhood Market, in fiscal 2015, and another 200-220 in fiscal 2016. This represents a sizable jump from the 121 smaller format stores Wal-Mart put up in fiscal 2014.
“We know that our supercenters are an important format for the stock-up trip, but we want to be thoughtful about our investment, ensuring that we align the space to evolving customer needs,” said Wal-Mart U.S. President and CEO Greg Foran. “To do this, we will moderate supercenter growth in fiscal 2016. Our investment in Neighborhood Markets will go forward because they continue to show strong results across the box and they provide our customers with convenient access to grocery, pharmacy services, and other quick-trip needs.”
In the same way that Wal-Mart is backing away from its current rate of supercenter expansion, the growth rate of Sam's Club stores will also be cut as the industry moves into fiscal 2016. The retailer will be putting up 20 Sam's Clubs in fiscal 2015, but in fiscal 2016 this number drops by half to 9-12 stores. According to Wal-Mart, this slowdown is a result of its desire to reinvest in new technologies which will set the stage for future retail growth.
“Our new clubs continue to perform well. Starting in the third quarter of this year, our new clubs incorporate several layout improvements, including an expanded fresh area and a combined health and wellness solutions center. These updates enhance the member shopping experience, and drive stronger sales and leverage labor efficiencies,” said Sam’s Club President and CEO Rosalind Brewer. “We are reducing the number of new club openings for next year and accelerating technology initiatives that integrate our physical locations with our digital capabilities.”
Wal-Mart has also revealed that it will be investing heavily in e-commerce going forward.
“We expect capital investments in e-commerce worldwide to be between $1.2 and $1.5 billion next year and these investments will include technology, infrastructure and other areas to support e-commerce and digital initiatives to serve customers,” explained Charles Holley, Wal-Mart’s Executive Vice President and Chief Financial Officer.
Overall, the company will be adding between 26 and 30 million in net retail square feet in fiscal 2016. The face of these new buildings are changing however as Wal-Mart adapts to the shifting retail environment. Stay tuned to AndNowUKnow to find out more about how Wal-Mart will respond to the future challenges and opportunities of the global retail industry.
EDEN PRAIRIE, MN - C.H. Robinson has begun operating out of a new facility for Robinson Fresh® customers in Corona, CA.
The state-of-the-art service center provides temperature controlled distribution services for national and regional programs, repack, consolidation, cross dock, forward distribution, and floral services, according to a press release. The facility is PTI compliant, PrimusGFS certified, and certified organic.
Coming in at over 187,000 square feet of warehouse space, the building provides over 135,000 square feet of temperature controlled operations, eight cold rooms with varying temperature zones, 28 docks doors, as well as air purification technology and cold chain handling processes, according to a press release.
Ray Griffin, Director of Global Sourcing at Robinson Fresh, notes that the facility’s close proximity to multiple retail distribution centers, major U.S. shipping ports, and West Coast metropolitan areas will provide customers with expanded and efficient supply chain solutions.
“Strategically located operations provide a value-added service that complements our sourcing and transportation expertise and provide a single source solution for customers who seek end-to-end supply chain services,” said Griffin. “The service center provides an accommodating suite of solutions that are customized and supported by a team of supply chain experts.”
Robinson Fresh currently manages seven additional facilities located in the Northeast, Midwest, South, and Southeastern regions of the U.S.
CHARLOTTE, NC - News out of Chiquita keeps rolling in, with the appointment of former Vice President & General Manager for Chiquita Brands North America Craig Stephen as Senior Vice President of Sales & Marketing for Fresh Express. In his new position, Craig will be responsible for overseeing Fresh Express' sales, marketing and customer service operations, as the company continues to provide expanded category offerings in retail value-added and private label salads.
“Craig is highly regarded and respected by all stakeholders across the fresh produce industry,” said Brian W. Kocher, Chiquita’s Chief Operating Officer. “We are confident that his extensive operational experience, coupled with his leadership and industry insights will help us consistently deliver superior customer service as we continue to profitably grow our Fresh Express business.”
Paired together with the release of Chiquita's preliminary Q3 earnings numbers, this news certainly paints the picture of a strong company ready to continue growing. According to a press release, net sales for this most recent quarter were approximately $739 million and Chiquita stated it expects operating income on a U.S. GAAP basis to be between $0-$2 million, compared to U.S. GAAP operating income of $1 million during Q3 in 2013. These numbers beat analyst expectations, who only expected $731 million in net sales, according to the Wall Street Journal.
Perhaps spurred on by these strong showings from Chiquita, the Cutrale/Safra Group which has been the main competition to Chiquita's proposed merger agreement with Fyffes, upped its buyout offer to $14/share for all of the company's outstanding stock. As AndNowUKnow covered in a previous story, the Cutrale/Safra group had previously offered Chiquita $13/share, or roughly $610 million, a move which Chiquita rejected in favor of the Fyffes merger. This new bid amount would bring the total value of the proposed takeover offer to $658 million. Chiquita has not yet released an official reaction to Cutrale/Safra's new offer, although the company did officially acknowledge receiving the offer.
When Chiquita does come to a decision about this matter, you can count on AndNowUKnow to bring you the news first. Until then, we would like to congratulate Craig on his new position with Chiquita!
SPRINGFIELD, IL –Tom Lange Company is launching Actual Produce, a new line of grab & go fruit cups at this year's Fresh Summit conference. According to a press release, Actual Produce will be featured in the New Products Showcase and in booth #2232.
Offered in six different varieties, Actual Produce fruit cups are single-serve containers, each of which hold 5oz of washed, hand-cut fresh fruit. They were developed as a lead brand in Tom Lange Company's “Foods with Benefits” strategy to help retailers respond to the growing consumer demand for fresher, more convenient snack products
The cups are made of a recycled resin and affixed with a label which resembles a smiling face. As consumers enjoy the fruit cup, the reverse label reveals the tagline “EAT. SMILE. REPEAT.”
Tom Lange shares how the cups were designed specifically to appeal as a grab-and-go snack item with their stackability and easy-open tab features.
Actual Produce cups are currently being sold in select American Target locations.
Be sure to check Tom Lange's booth, #2232, out at this year's Fresh Summit!
SAN JUAN BAUTISTA, CA – Earthbound Farm is celebrating its 30th birthday, unveiling its newly re-designed booth featuring a café theme and more at Fresh Summit.
Along with sharing new products, the company’s booth will be highlighting the versatility of its products and ways to incorporate delicious greens into every meal, according to a press release. The schedule below features culinary demos by Earthbound Farm Executive Chef Sarah LaCasse and Earthbound Farm Ambassadors Amelia Winslow from Eating Made Easy and Tess “The Blender Girl” Masters.
Aside from the cooking demos and samples, visitors will also be able to discover their “Salad Sign” by taking a quiz. ‘What’s Your Salad Sign’ was officially launched September 1, 2014 as part of Earthbound Farm’s 30th birthday and identifies four personality pillars, or salad signs, of the company’s founders, farmers, employees and customers – Innovator, Explorer, Champion and Nurturer.
Earthbound has a lot to celebrate. Its two new products, Kale Italia and PowerMeal Bowls, are finalists for the 2014 PMA Impact Awards in Excellence in Packaging, and the company was just named to Women’s Health Magazine’s 2014 SuperMarket Super Stars in the Healthy Packaged Lunch category.
Here is Earthbound Farm's booth schedule.
SATURDAY, OCTOBER 18:
Time
11:00a – 11:30a
Featured Product
Frozen Triple Berry
Power Greens
Recipe
Triple Berry – Power Greens Smoothie
Power Greens, Potato, Parmesan Frittata
Talent
Executive Chef, Sarah LaCasse
Time
12:15p – 1:00p
Featured Product
Kale Italia
Recipe
Kale Italia Salad
Kale Italia Risotto
Talent
Executive Chef, Sarah LaCasse
Time
2:00p – 3:30p
Featured Product
Kale
Zen
Recipe
Tastes-Like-Ice-Cream Kale Smoothie
Incredibly Edible Edamame Dip
Talent
The Blender Girl, Tess Masters
Time
3:45p – 4:30p
Featured Product
Kale
Butter Lettuce Leaves
Recipe
Kale Lemonade Cocktail
Appetizer Assortment
Talent
Executive Chef, Sarah LaCasse
SUNDAY, OCTOBER 19:
Time
10:30a – 11:00a
Featured Product
Power Greens
Zen
Recipe
Power Greens Smoothie
Zen Bland Zucchini Bread
Talent
Executive Chef, Sarah LaCasse
Time
11:00a – 12:30p
Featured Product
Kale
PowerMeal Bowls
Recipe
Kale Breakfast Quesadilla
PowerMeal Bowls
Talent
Eating Made Easy blogger, Amelia Winslow
Time
1:00p – 1:45p
Featured Product
Various Salad Greens
Recipe
Spicy Kale Caesar Salad
Garden Party Salad
Sun-Washed Mediterranean Salad
Talent
Executive Chef, Sarah LaCasse
Make sure the check out Earthbound Farm booth #830 at Fresh Summit.
HOUSTON, TX – Executives from Sysco are in talks with the U.S. Federal Trade Commission (FTC) to try to save its $8.2 billion merger with US Foods from a potential antitrust lawsuit.
"We continue to engage in productive discussions with the FTC and other stakeholders regarding our merger with US Foods. We are confident that those discussions will lead to completing the merger in the fourth quarter of this year," Sysco spokesman Charley Wilson said to Reuters.
Last June, Bill DeLaney, Sysco President and CEO, spoke on the FTC decision saying, “We continue to believe that the Commission, once it finishes its investigation, will conclude that our industry is – and will continue to be – fiercely competitive. Our proposed merger will benefit customers and help us become more efficient in this rapidly evolving marketplace.”
The New York Post reports that the FTC is expected to decide by October 31 if it will block the deal between the number 1 and 2 food distributors in the country. If the FTC does indeed approve the deal, the two businesses would represent more than 25% of the $231 billion U.S. food-distribution industry.
Sources tell the Post that Deborah Feinstein, FTC’s Head of Competition, has told the FTC’s five commissioners that she is ready to sue to block the deal unless certain conditions are met. Those conditions may simply force Sysco to divest assets in areas where there’s too much geographical overlap. A Barclays report states that a number of industry experts believe that Sysco would have to divest approximately 15 facilities, or $6 billion of its revenues.
Sources tell AndNowUKnow that the merger shouldn’t concern larger suppliers, but it could possibly have an effect on some smaller suppliers who have a greater allocation for their customer base.
In an ANUK poll, our readers said that they believe some divestments will be made, but the merger will go through. More than 50% said that they did not support the merger.
For now, we’ll have to wait and see how the FTC decides. Stay tuned to AndNowUKnow for the latest updates on the Commission’s examination of the Sysco and US Foods merger.
Mike Leone is joining Fru-Veg Marketing, Inc. as Senior Account Executive based in our new office at Manfredi Cold Storage in Toughkenamon, PA, effective Tuesday the 14th of October, announced Conchita Espinosa Chediak, CEO of Fru-Veg Marketing. Mike’s vast experience in marketing berries will provide instant growth in our year round program, but more exciting for him is the opportunity to expand his list of commodities. Mike will now be able to market a wide range of fruits and vegetable such as Clementines, Cherries, Stone Fruit, Asparagus, Value Added French Beans, etc.
Most recently, Mike was the East Coast Sales Manager of Giumarra International Berry, managing sales of imported and domestic blueberries, blackberries and strawberries throughout North America from their Avondale, PA office. Although berry sales were the primary focus of his nearly four year tenure with GIB, he was also directly involved with grower relations, procurement and logistics for the division.
Prior to joining Giumarra, Mike was employed with John Vena, Inc. and John Vena Specialties in Philadelphia, PA. During his five years at Vena, he served as Salesman and Buyer of many commodities such as Asparagus, Berries, Tomatoes, Hot House Veg, and Specialty Vegetables.
Residing in a nearby suburb of Philadelphia, Mike is married with two sons. In addition to his eagerness and commitment to continual growth in the produce industry, he enjoys spending almost all of his free time with family sports and activities.
“The produce industry seems to offer new and exciting challenges every day. That's what excites and motivates me about my work, but most rewarding is seeing my kids get excited when they recognize our products in the supermarket; or enjoy the fruit that our farms produce; and especially when I hear them explain to friends how we help supply people with farm-fresh fruits and veggies. Their understanding and enthusiasm seems to bring it all full circle.
“I have been very fortunate to have worked for such high quality companies in my career, surrounded by so many hard-working and bright people. I look forward to continuing my path of growth with Fru-Veg and bringing the values and knowledge gained to this new and exciting endeavor!”
This article was copied verbatim from a press release.
LOS ANGELES, CA - Retired stone fruit grower Helen Krause is back in her kitchen to help Giumarra Reedley promote its new persimmon “Power Packs” this fall. Shipping now through November, these 4.5 pound boxes will feature Mrs. Krause's delicious baking recipes for consumers to enjoy.
“Mrs. Krause is a crowd favorite and just in time for fall, is offering her time-tested Hachiya Oatmeal Cookie and Pudding Cake recipes, along with hints on ripening, freezing, and making Hachiya pulp,” shared Jeannine Martin, Director of Sales for Giumarra Reedley. “We think her approachable personality and helpful hints will really help consumers discover new ways to use Hachiya persimmons.”
Giumarra first began its collaboration with Mrs. Krause during the spring through Giumarra's Nature’s Partner “Easy as Pie” plum promotion. After the success of that promotion, Mrs. Krause is excited to turn her eyes to persimmons, showing customers how to use the sweet fruit with innovative baking recipes and convenient “Hints from Helen” on 3-inch by 5-inch cards printed accordion-style and packed in every consumer box.
“I’ve been baking with persimmons for years, and there are tricks to working with Hachiyas in particular,” Mrs. Krause said. “One key is to know each piece of fruit ripens independently, and you must wait until each is fully ripened before using in recipes.”
According to a press release, the “Power Packs” were designed to stand alone and interlock for easy stacking in retail. Giumarra Reedley is excited about the potential of this new iron and Vitamin C packed, nutrient-rich product line and looks forward to marketing it over the next month as a healthy snack to children and adults alike.
IMMOKALEE, LA – Lipman is inviting Fresh Summit attendees to check out the artistic exploits of Patrick O’Brien, the “Fruit-Carving Ninja." This talented Fayetteville, NC produce artist creates his art from fruits and vegetables, carving intricate designs on everything from watermelons, to apples, to winter squash. His work has been featured in numerous competitions, bridal expos, and even at the 2014 U.S. Open in Pinehurst.
“Everyone has seen ice sculptures and cake, but when I show up, the camera phones come out,” Patrick told City View in a previous interview. He explained how he can see art in “any vegetable that will hold its shape when cut” and looks forward to bringing his unique talents to this year's Fresh Summit.
“We look forward to the Fresh Summit,” agreed Darren Micelle, COO at Lipman. “It is a prime opportunity for us to promote our products while learning about industry trends and news.”
If you haven't seen Patrick's produce creations before, I highly recommend giving them a look. The detail he puts into each carving is really quite impressive.
While admiring O'Brien's art, Lipman invites college football fans to check out the weekend's games, which will be playing live at its booth.
Lipman will also be promoting the upcoming fall harvest of its exclusively Florida grown Crimson Queen round and Ripe Bite grape tomatoes as part of its “We Bring the Farm to You!” theme.
Be sure to check Lipman out at booth #474 at Fresh Summit. The company says it will be holding a prize giveaway on both Saturday and Sunday for those who drop off their business cards when they do.
WASHINGTON, D.C. - The USDA has lifted PACA reparation sanctions on two Greeley, Colorado-based produce businesses – Buckboard Bean Inc. and Sunset Trading LLC.
The two companies can now continue operating in the produce industry after applying for and receiving a PACA license. Tammera A. Anderson and Darin D. Anderson were listed as members of Sunset Trading LLC. Darin D. Anderson was also listed as the Officer, Director, and major stockholder of Buckboard Bean Inc., according to a press release. Both principals may now be employed by or affiliated with any PACA licensee.
Buckboard Bean Inc. was formerly restricted from operating in the produce industry in December 2013 for failing to pay an $11,555 award in favor of a California seller.
Sunset Trading LLC was formerly barred from the industry last July for failing to pay a $29,584 award in favor of a California seller.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named, responsibly named individuals.
In the past three years, USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. Individuals, including 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.