WATSONVILLE, CA – California Giant Berry Farms has deepened its commitment to being a leader in the fresh blueberry industry, with the promotion of 4 year company veteran Nader Musleh to Executive Director of the Blueberry Division. According to a press release, he will be taking on full responsibility for all of California Giant's non-strawberry operations, working closely with senior executives to develop company policies and growth strategies for the domestic and international berry markets.
“Nader has proven to be a leader in the development of the company’s blueberry program. We understand this is a big move for him and his family and are very pleased he will take a larger leadership role within the company as we take this program to the next level”, said Bill Moncovich, President and CEO.
For his part, Nader said he was excited to assume his new position and get to work for the company.
“I will be moving my family here in January and even though it is a big change for all of us we are excited about the new opportunity ahead and I look forward to expanding our berry program,” he said.
Nader will assume his new role effective August 12th, 2014. According to a press release, his first task will be working on plans to expand the grower's geographical reach in order to increase California Giant's market share and ensure volume continues to meet growing sales needs. To do this he will be working with the existing Bush Berry sales team composed of Jerry Connery, Bush Berry Category Manager and Evan Pence, Blueberry Operations Manager for North America.
Congratulations on the promotion Nader!
CINCINNATI, OH & BOCA RATON, FL – The Kroger Co. has successfully closed its acquisition of Vitacost.com Inc with Kroger’s tender offer to purchase all outstanding shares of common stock of Vitacost.com for $8.00 per share in cash.
Street Insider quotes Analyst Stephen Grambling as saying, “We continue to believe the deal provides KR with a testing bed in direct distribution, adds talent to its digital staff, and complements its expanded natural and organic offering, all critical in positioning the company to benefit from secular shifts in the industry."
As we reported earlier, the $280 million purchase is expected to complement Kroger’s strategy to enter new markets, as well as Harris Teeter’s online order and pick up service.
Kroger expects to complete the acquisition of the remaining eligible shares as well. When the merger is complete, Vitacost.com shares will cease to be traded on the NASDAQ, according to a press release.
RTT News reports that as of the expiration of the tender offer, approximately 29.84 million shares were validly tendered and not withdrawn. This figure represents 86.68% of Vitacost.com’s outstanding shares.
Kroger CEO Rodney McMullen expressed his support of the deal noting that Vitacost.com’s “core focus on healthy living products is complementary to our fast-growing natural foods business, and we intend to grow Vitacost.com’s strong position in the online nutrition market. At the same time, we will build on Vitacost.com’s e-commerce platform by integrating it with our existing digital offerings to create exciting new levels of personalization and convenience for our customers.
For the full story on this merger proposal, check out our previous article by clicking here.
Stay tuned to AndNowUKnow as we continue to track the potential effects this merger will have.
OAK BROOK, IL - McDonald's is throwing open the doors to fresh produce with the introduction of Cuties into Happy Meals this fall, as well as some newly announced market tests for blueberries and Chiquita's junior bananas, and even grapes.
According to Greg Watson, Senior Vice President of Menu Innovation with McDonalds, if all goes well these new fruit options could soon be joining Cuties as seasonal menu items for parents and families looking to make healthier choices when going out to eat.
"It's potentially a big deal, as long as parents order — and kids eat — the fruit," Hope Warshaw, a dietitian and author of The Guide to Healthy Restaurant Eating, told USA Today. "Due to the sheer volume of Happy Meals that McDonald's serves, little changes can make big impacts on the health of American children."
This menu shakeup is as big a deal for growers as it is for parents. As AndNowUKnow previously covered, the introduction of apple slices at McDonald's restaurants, led to over 850 million packages being sold since 2012. The sheer size of McDonalds' market power in the food industry means huge order numbers for any fresh produce featured on its menu, happy news for the produce community.
So far the feedback on these new fruit choices has been strong. "The feedback was overwhelmingly positive" in our Cuties market tests, Watson told USA Today.
Watson explained that the long term goal is a whole lineup of fruits that would rotate through the menu according to what is in season.
I applaud the steps McDonalds is taking in this regard. Everyone agrees that Americans should be eating more fruits and vegetables. In fact ANUK just reported on a study by the WHO that says we should as much as double our produce consumption in order to meet nutrition recommendations. If McDonalds is able to use its menu to drive more produce purchases, then that is something I am 100% behind.
PERU - Camposol Holding has released its Q2 financial report and with volume up 68.3% and sales up 55.6% compared to its numbers from Q2 of 2013, financial experts certainly like what they're seeing.
Some highlights from Camposol's financial report include:
Volume of 31.786 net metric tons, a 68.3% increase from 2013 Q2, the majority of which comes from increased volumes of fresh avocados
Average price of $2.29 per net kilogram, down 7.7% from 2013 Q2
Total sales of $72.8M, up 55.6% from 2013 Q2
A $18M increase in avocado gross margin numbers, due to increased price and volume sold
165.5% increase in EBITDA to $16.3M
The company's forward looking guidance statements reveal that Composol Holding's expectations for the long term growth prospects for exotic fruits and vegetables are especially strong, especially for fresh avocados, blueberries, asparagus and grapes. According to its financial release, due to the expected effects of El Nino, Camposol does reveal it expects asparagus volumes to decline by about 25% going forward, however it says that almost all of this decline will be offset by increasing asparagus prices. Similarly avocado prices are expected to fall in the future, but with increasing volume for avocado production Camposol does not expect to be strongly effected.
Congratulations on an excellent Q2 Camposol Holding. I'll be looking forward to more good news from Camposol in the future.
MEXICO CITY – The Mexican Ministry of Agriculture, Livestock, Rural Development, Fisheries and Food, or SAGARPA, reports that avocado exports for the first half of this year have increased 29% over the same period in 2013.
Total avocado sales equaled $794,446,000 between January and June 2014, which represents an estimated 353,000 tons.
According to the SAGARPA report, avocados from Mexico were marketed in 21 markets including the United States, Japan, Canada, China, the Netherlands and many more. China saw the most growth in this time period with $2,970,000 representing 260 tons, according to Informador.com.mx. This represents a 724% increase.
The Netherlands also experienced a significant increase with $647,000, which was almost three times more than last year for the same period.
SAGARPA reports that the top importers of Mexican avocados are the United States, Canada, Costa Rica and El Salvador in that order. The US imported avocados worth $651,328,000 in sales representing a 31% increase over last year.
SIAP, the Mexican Food and Fisheries Information Service, reports that Mexico produces approximately 1,467,000 tons of avocados per year in 27 states.
The Inter-American Institute for Cooperation on Agriculture, IICA, believes that Mexico may become a major player in world agriculture. Victor Villalobos, the Director General of IICA, tells informador.com.mx that Mexico is very strong in the cultivation of fruits and vegetables like avocado, mango, tomatoes and more as well as being a leading producer of blueberries, strawberries, raspberries and blackberries.
He adds that Mexico should focus on more open policy and campaigns to position its products in the world to fully maximize on this agricultural boom.
With this in mind, I will definitely be keeping my eye on the Mexican agricultural markets.
MICHOACAN, MX - For the 4th year in a row, Michoacan is the largest strawberry growing region in Mexico, with the town of Los Reyes at the center of this strawberry empire. According to Mario Alejandro Andrade, President of the National Association of Producers and Packers of Berries, Michoacan's strawberry production ranks even higher than northern Baja California and Jalisco, with a production area of 22,982 hectares. This enormous growing region produces 538,912 tons of produce, a value of over 9 billion pesos.
"Michoacán has a privileged geographical position and climate, because it has the perfect climate to produce these strawberries, and production can be easily distributed to the entire country, and even for the export market. We hope to involve between 700 and 800 producers, traders and members of the general public in the upcoming Congress, " Andrade said.
That Congress, the 4th International Aneberries Congress more specifically, will be taking place in the city of Morelia in Michoacan from August 20-22nd, in honor of Michoacan's special place in the produce industry.
Michoacan is not just known for its strawberries however. According to Mimorelia it is also a national leader in blackberry production, generating between 70,000 - 80,000 jobs for agricultural workers.
With crops like this behind them, the future is looking bright for Michoacan. The Director of Information and Press of the General Coordination of Social Communication, Eduardo López Nolasco explained that the International Aneberries Congress had chosen its slogan, Asian Market: A Window of Opportunity, because of the increasing opportunity in the growing Chinese export market for Mexican growers.
With the way production and trade in this reason is expanding, who knows what this number could be as we move into the future. What I do know for sure is, I'll certainly be keeping my eye on Michoacan as we move forward.
UNITED STATES - The newly released Global Phytonutrient Report in the British Journal of Nutrition reveals that in order to meet World Health Organization guidelines, most adults would have to at least double their current produce consumption. According to the study, 60-87% of adults across 13 geographic regions failed to meet this dietary recommendation, putting their bodies at risk for serious long term health problems.
"No matter where they live, many adults today lead busy and active lives and/or may have limited access to some fruits and vegetables," said Dr. Keith Randolph, Nutrition Technology Strategist at the Nutrilite Health Institute and co-author of the study. "That's why it's important for adults to eat whole foods, including fruits and vegetables, whenever possible.”
"Insights from the research highlight a global need for increased awareness of the relationship between fruit and vegetable consumption, and phytonutrient intakes,” he added.
These phytonutrients, plentiful in fresh produce, are vital components in promoting eye, bone and heart health, as well as supporting immune and brain function, according to All Africa. Many of these phytonutrients are also important antioxidants which help prevent the damage done to our bodies cellular structure over time.
"Both the amount and variety of fruits and vegetables in a person's diet are important," said Mary Murphy, MS, RD, Senior Managing Scientist at Exponent, Inc. and Randolph's co-author. "In order to consume a range of phytonutrients people should aim to meet recommended intakes of fruits and vegetables and eat an assortment of fruits and vegetables."
This study just underscores the important role the produce industry plays in modern society. Our growers do not just supply consumers with a product, they are responsible for a vital component of what makes our bodies live and thrive. If this study is to be believed, it is very clear that we need them now more than ever.
ESSEN, GERMANY - Discount chain Aldi is projected to nearly double its sales by 2019, according to a new report released by investment bank UBS. Analysts suggest that the German-based retailer will increase its current sales from $5.3 billion to $9.3 billion in the next five years, potentially taking an estimated $250 million to $350 million worth of sales from Australian grocery chains Woolworths, Coles, and Metcash, which owns IGA.
UBS analyst Ben Gilbert, in particular, expects to see Aldi capitalize on three key areas to capture more of the market. “There’s a big opportunity for Aldi to improve perception of fresh foods, improve checkout queue times, and improve the in-stock position to drive more frequency of shop and higher spend in store,” said Gilbert.
Gilbert suggests that the retailer could grow sales by at least 12% a year over the next five years and have an especially large impact on the Australian grocery market if it continues its expansion in Western and South Australia. This research is based on the company’s progress over the last few years and the shopping habits of more than 600 individual customers, according to The Sydney Morning Herald.
In response to the report, Aldi’s joint group managing director, Stefan Kopp, said that UBS’s market share, sales, and store numbers were right around current company expectations. He argued that though he believes the company will continue growing, he suggested that the company will “never be a big player” or “even close to the size of Coles and Woolworths,” Sydney Morning Herald reports.
“Nine billion [dollars in sales] is achievable and slightly optimistic. I wouldn’t go beyond that,” he said. “We have 350 stores (in Australia) and we plan to open 25 a year for the next years. Most of those new stores will be fill-in stores and they’ll take some sales away from existing stores.”
He concluded by noting that the company is getting better by continuing to extend its produce range, adding meat items, a more sophisticated bread offering, and rejuvenating older stores.
This discount grocery store certainly seems like it’s getting a leg up on fellow retailers with an increased focus on fresh foods, but will it be enough to take away market share from the competition? Stay tuned to AndNowUKnow as we find out.
PERU - Produce Inspectors of America (PIA) is continuing its international growth with the addition of a new operation in Peru. The company’s goal is to offer new alternatives while providing the same quality services that PIA already offers in the U.S., Europe, ASIA and Chile.
“We would like to provide Peruvians growers, exporters and direct importers a source for quality information in making the most informed decisions before they ship the fruit to abroad. Our first steps in Peru is going to be working with Asparagus, one of the most emblematic products from Peru and also with blueberries; an industry that is starting in Peru with a huge potential. Later, we want to focus in Avocados, Grapes, Pomegranate and mangoes,” Juan Pablo Caballero, General Manager PIA-USA, tells me.
Matias Bustamante will be managing the new operation. His team will arrive in Peru at the end of August (2014) will plans to be up and running at the beginning of September. He is an agricultural engineer Graduated from Universidad De Chile. He also has a Master in Pest and Disease.
Matias has been working for PIA for more than 4 years. He spent his first 2 years working in the U.S. in Miami and Philadelphia. Since 2012 he has been in charge of our operations in ASIA, specifically China, Hong Kong, Japan and Korea.”
“We are excited to be expanding our business into Peru and are very confident that our experience and processes will help improve arrivals while avoiding quality issues and rejections,” Juan Pablo notes.
Congrats, PIA, on your international expansion and continued growth.
RICHLAND, WA - Railex has announced that it will be hosting this year's Potato Season Kick-Off Meetings & Luncheons in beautiful Washington State.
There will be two meetings altogether along with the luncheon and Railex says that it will be a great event for potato shippers to kick-off this year's harvest season.
The event will start with a meet-and-greet at Anthony's Restaurant, in Richland, WA starting at noon on August 26th. The second meeting will also start at noon the following day and will be held at Max Dale's Steak & Chop House in Mount Vernon, WA.
According to the press release, interested participants should send RSVP's to Railex by August 20th.