ZAANDAN, NETHERLANDS - Ahold has seen increased market pressure during the second quarter of 2014. The company is reporting net sales of €7.4 billion, down 1.1%. However, the retailer did see strong online Q2 sales of €29 million, an 18.6% increase.
“In a challenging competitive environment, we remain focused on executing our Reshaping Retail strategy and continue to make investments in our customer and value offering, making our stores a better place to shop,” said Ahold CEO Dick Boer.
In the United States, Q2 net sales were €4.4 million, which represents a 1.7% decline under last year for the same period, according to the company's Q2 financial report. Ahold says that Easter falling into the second quarter had a negative impact on sales.
Check out Ahold CEO Dick Boer discussing the company's Q2 results by clicking below.
Ahold’s U.S. online grocery operation, Peapod, saw double-digit sales growth in the second quarter. With the opening of a new warehouse in New Jersey, Peapod’s capacity will almost double and will consolidate its position as the leading online grocer in the U.S., according to a press release.
“In the United States, the roll-out of our program to improve our customer proposition is progressing well, bringing better quality, service and value to our customers. By the end of this quarter, the program was active in 320 stores and will be rolled out to more than half of our stores by the end of this year. The accelerated roll out of the program together with our decision to absorb commodity price increases resulted in an investment in margin that was partly offset by cost savings from our Simplicity program,” Boer said.
Looking ahead, Ahold expects ongoing investments in its customer proposition and further development of its product range across multiple categories to result in improving sales trends. The retailer remains focused on executing its Reshaping Retail strategy and investing in its Simplicity program.
What can we expect from Ahold’s continued investments online, and how will the retailer’s new program improve sales in the next quarter?
Stay tuned to AndNowUKnow as we keep an eye on Ahold’s performance as the fiscal year continues.
WASHINGTON D.C. - Uber is testing out The Corner Store, a new online grocery delivery service to complement its already exceedingly popular private taxi services. During this month long trial period, Uber app users in the Washington D.C. area will be able to select over 100 items with their smartphones for free same day delivery to their home addresses.
While the new feature is so far limited to just shoppers in the D.C. Area, Uber has hinted that if it is met with sufficient success, it could be expanding the program in the future.
"The more you love it, the more likely it will last,” read a post on Uber's blog.
Uber is just the latest in a long line of companies to jump onboard online grocery delivery. Google and Amazon for example have already debuted their own delivery service programs. Whether any of these programs meet with enough economic success to continue into the future is still up in the air however, according to Stephen Mader, Director of Digital Retail at the Kantar Consultancy.
"The biggest hurdle that a lot of these delivery companies have is how can you make the economics of last-mile grocery deliveries add up?" he told BBC. "On average, Uber's price points are on a par with what you would find in a physical store such as Walgreens, so what it is trying to do is take the pricing equation out of it from the shopper's perspective. But long-term this is most likely not going to be economically feasible unless Uber starts to figure out other ways to monetize this, through adding delivery fees or charging advertising fees to brands that take part in the programmer."
If the service does start drawing in profits could Uber one day expand the program to include fresh produce? Considering that many of its competitors in the field like AmazonFresh have already done so would suggest that the likelihood is high.
Stay tuned to AndNowUKnow for any further updates in this expanding grocery delivery marketplace.
Claudia Pizarro-Villalobos, Sales Specialist for D’Arrigo Bros. Co. of California, has been featured in the latest edition of AndNowUKnow’s print publication, The Snack Magazine. As a commodity manager for Nopalitos and Cactus Pears, Claudia talks life, prickly pears and everything in between.
Check out The Snack article by clicking here, or read the full text below:
Claudia Pizarro-Villalobos: Secret Sweet Gem
"Be yourself, share your talents as a volunteer or mentor, and make time for yourself and your family," Claudia Pizarro-Villalobos tells me.
Born in Salinas, California, this former Cal Berkeley point guard is a jack of all trades. The youngest of three siblings, she received her B.A. from UC Berkeley and her M.A. from Harvard before returning to Salinas to work for Hartnell College as the Director of the AmeriCorps/America Reads Program. After working three years at Hartnell, she moved to Cambridge and graduated from Harvard’s 9 month intensive Master’s program.
Claudia’s positive outlook, drive, and ambition have taken her across the country and the ocean. “I climbed Villarrica Volcano – an active volcano in Pucon, Chile (it’s one of only five volcanoes in the world known to have an active lava lake within its crater) as an international student at the Universidad de Chile in Santiago, during my junior year away from CAL,” she tells me.
Currently working for D’Arrigo Bros. Co. of California as a Sales Specialist, she is a commodity manager for Nopalitos and Cactus Pears. This shining star actively participates in the Salinas Rotary Club Member/Board of Directors, YMCA Board of Directors, HELP Board of Directors (Healthy Eating Lifestyle Principles), California Women in Ag Member/Progressive Dinner Co-Chair, and IMPOWER Board of Directors (Inspire, Motivate, Prepare, and Organize Women to Engage and Reinvest).
Claudia resides in Salinas and is married to Mathew Villalobos, VP of Coast Automotive Warehouse, and they have a 20 month old son, Dylan Mateo. If you are looking for a pick-up game in Salinas, just give Claudia a call. She’s always down.
Who has influenced your career and personal growth?
Margaret D'Arrigo-Martin. There are some relationships that really build a person. She saw my potential. We were in the rotary together and Margaret spearheaded the board. I was just getting my bearings and she brought me into the fold. Margaret brings energy to the table and really leads each movement or commitment she gets behind. With Margaret, everyone gets involved. She has been such a leader and I only hope to be able to give back in the ways that she has for our community and industry.
Are you really a Prickly Pear a.k.a Cactus Pear?
Ha. Well, I definitely have a tough skin, but I am sweet on the inside. It does you well to be colorful and unique, but more than anything I am persistent and resilient. So, in a way yes, I am a prickly pear.
What is your greatest regret?
President Bill Clinton stopped into our family restaurant Chapala, and it was literally the only day I wasn’t there! My mother called me and told me the President was in the area and stopped in for lunch. I didn’t believe her. The next day she had the newspaper clippings to prove it.
Chapala was a mainstay in Salinas for 25 years. When my parents came to the U.S. from Northern Mexico they had no education and spoke no English. My father worked at the Spreckels Sugar Refinery and my mother worked in the fields before they opened Chapala. I learned how much hard work, hope, and determination can pay off.
What goes into marketing and merchandising Cactus Pears?
The biggest challenge I face is in educating the retailer and the consumer about the versatility and possibilities of fruits and vegetables. Many people simply don’t even know how to cut a cactus pear, which means preparing it is out of the question. By educating each point person between myself, the retailer, and the consumer, Cactus Pears as a specialty item can become more mainstream. You can use them in jams, sorbets, ice cream, smoothies, sushi, purees, cocktails…but, people don’t even know how it tastes. Prickly pears come in five colors, ranging from purple to green-orange, blood red, and magenta. It’s a vibrant and wonderful product to keep stocked on the produce shelf with the right marketing tips. The flavor is incredible and plays between watermelon and kiwi.
What can retailers do to take Cactus Pears to the next level?
I have seen great success with retailers who conduct food tastings and demos for shoppers. While the appearance itself can entice the consumer to ask questions, your best bet is to beat them to it. Demo the item fresh-cut in store with yogurt and granola. It’s a great opportunity for yogurt companies and ice cream companies to partner with a unique item that could be the next pomegranate. It’s our secret sweet gem!
D’Arrigo is the largest commercial grower in the U.S. and as more consumers look to buy produce based on origin, we hope that retailers will realize that we have a marketing program that is in their backyard. California grown. Food safety and Kosher certified.
Over the years, we’ve combined the best fruit characteristics of cactus pears, also known as prickly pears, through controlled hybridization to cultivate the sweetest and most flavorful cactus pears. Ours are ripe, ready to eat, de-thorned, and exclusively grown in the Salinas Valley, California. We offer an exclusive signature series, 4 of which are hybrid offerings. In addition, Andy Boy Cactus Pears undergo a unique cleaning process that removes a vast majority of the plant’s tiny prickers. The result is a smooth, safe surface. No sticks or slivers. So it’s easier to enjoy the delicious and healthy fruit of the cactus.
The Monterey Health Consortium was an important time in your personal growth, tell us about it.
I’ve always enjoyed grass roots endeavors and at the time I wanted to give back to the community and at the same time work for myself. In 2002, I was working in Washington D.C. for Congressman Xavier Becerra (LA). I took the opportunities I had working alongside constituents and public officials to find out about the politics of creating a non-profit organization. And let me tell you, they don’t make it easy.
I asked myself, what was important to me? My parents were farm workers; education and health policies were top of mind and I wanted to be my own boss.
After asking around in Monterey and finding out that much of the smoking cessation funds were being misappropriated, I decided to try and funnel the support toward creating a nonprofit. The Monterey Health Consortium was created to assist low-income farm workers with health education and benefits. The stint was short and sweet, but one of the most important things I have ever done.
…As the specialty produce category continues to grow, Claudia tells me that the company plans on expanding its produce offerings to address the evolving demographics in the U.S. and abroad. Cactus Pears, the new pomegranate? I’ll bite.
SALINAS, CA – Mann Packing Company is welcoming Terence Billingsley to its retail sales team. According to Jeff Freeman, Vice President of Retail Sales, Billingsley's wealth of retail and sales experience will make him a valuable part of the Mann Packing team.
“Terence will bring a focus on increasing market share, driving shopper-centric programs and promotional planning and trade development programs to our sales team,” he said. “Along with his impressive background and proven skill set, Terence has an infectious enthusiasm that will serve him well as he manages accounts in his region.”
Before joining Mann Packing, Billingsley worked at Unilever as the Safeway Customer Business Manager. He has also served as Vice President of Sales at Promoworks where he worked with the Safeway marketing team to sculpt its in-store shopping experience and at Kraft Foods as a business leader of its brands at Safeway.
According to a press release, Billingsley received a Bachelor's of Science in Business Administration at Sonoma State. He and his family live in American Canyon in Northern California.
Congratulations on the new position, Terence!
CASTROVILLE, CA – Ocean Mist Farms is using new technology to combat the affects of drought conditions on its crops.
“The Salinas Valley is experiencing serious drought conditions, getting only 15 inches of rain in the past three years,” Chris Drew, Product Manager for Ocean Mist, told TechRepublic. To counter these conditions, Ocean Mist Farms has traditionally conserved water mainly through night irrigation and drip-line irrigation.
Now, however, Ocean Mist is looking to technology for help. According to TechRepublic, Chris, a graduate of Cal Poly San Luis Obisbo with a degree in crop science, is working to bring that tech to the field. To help Ocean Mist adapt to the drought conditions, he partnered with John Deere and installed Field Connect, a prototype sensor array, in the artichoke fields.
The Field Connect collects data like soil temperature, air temperature, soil electro-conductivity, soil-moisture content, leaf-wetness and solar-radiation level from the field and sends it to John Deere servers for analysis.
Checking the soil-moisture content allows Ocean Mist to determine the time to water based on moisture at root depth to more accurately conserve water. The soil electro-conductivity allows Chris to monitor when it is time to fertilize and how much water to add based on changes in salt conductivity, according to TechRepublic.
At John Deere, the information gets analyzed, manipulated and made available on servers that Chris can monitor via a secure web application. According to Chris, before Field Connect was available, Ocean Mist relied on 10-year averages when making decisions. Now, the company is able to react in real-time to the needs of the plants.
When asked about the main advantage of using Field Connect by Tech Republic, Chris said, “Time. Saving time by not having to dig holes to see the soil’s moisture content.”
Looking to the future, Ocean Mist is planning to use technology in its harvesting, total water management, equipment maintenance and soil prep, fertilizing and planting.
LAKE CITY, MN – SweeTango Apples is unveiling a new website in order to kick off its fall marketing season. SweeTango believes that the updated retailer section, new profiles and snapshots of its growing partners, and a host of delicious recipes and apple pairings will give its partners the content they have been asking for with apple season drawing close.
“SweeTango is a premium variety, and our customers love the snap of satisfaction that comes with biting into the apple,” says Tim Byrne, Executive Director of Next Big Thing, A Growers’ Cooperative which grows and markets SweeTango. “The new SweeTango.com is a great reflection of the SweeTango experience – bold, zesty and flavorful.”
To check out the new website for yourself, click here.
According to a press release, the new website is part of SweeTango's “The Sweet Spot of the Apple Season” national marketing campaign. This campaign focuses on combining traditional retail promotions with innovative new digital ones for an enhanced interactive customer experience.
Other new website features include:
- Biographies of SweeTango's growing partners in the U.S. and Canada
- “The SweeTango Story” – a video sharing the origin of the SweeTango variety
- Information about retailers, store locations, and SweeTango events
- Grower stories, sampling opportunities, and media clips as the season approaches
- Retail partners will be able to access grower sales, SweeTango images, logos, in-store signage and more.
According to a press release, SweeTango apples are sold for a limited time each fall. They are a crossbreed between the Honeycrisp and Zestar! apple varieties.
LOS ANGELES, CA – 4Earth Farms has announced that it has been granted the SQF CODE Edition 7.1 - Level 3 food safety certification, the highest protocol level the internationally recognized Safe Quality Food Institute can grant to industry members.
“Food safety has been the foundation of our business,” David Lake, 4Earth Farms CEO and Co-Founder, said. “We were always driven to have a state of the art warehouse, the cleanest packing room and the finest produce, but this process has allowed us to quantify it. We knew we were good at food safety and product quality control, but going through the SQF 7.1 Level 3 Certification process has taken us to a whole new level.”
Lake went on to add that the reason 4Earth Farms took these steps because of how highly it values the trust and confidence of its business partners.
“Confidence is what we want to provide to our customers,” he said. “Confidence that in an imperfect world, 4Earth Farms is investing time, money and energy to do everything in our power to make sure consumers of our produce are safe and satisfied - everyday.”
According to a press release, 4Earth Farms says that the new certification level essentially makes all of its workers a key part of the food safety team.
“We believe passionately that effective food safety must be embedded in our company’s culture. For 4Earth Farms, food safety is a company-wide initiative and our entire team is committed to constantly raising the bar and striving to be better!” said Mark Munger, V.P. of Sales and Marketing at 4Earth Farms.
”Over the past 12 months our team worked on researching and updating our program with guidance from SQFI and outside consultants to enhance our systems and establish new protocols,” he added. “For a 160,000 square foot complex that conducts warehousing, packing, organics and logistics – to obtain the this high level of certification is proof to our commitment and effort.”
According to a press release, SQF Level 3 Certification covers all aspects of company operations including food handling, risk analysis plans and procedures, systems development, employee training and management responsibility geared at maintaining the highest level of quality and performance.
Congratulations on attaining this impressive certification, 4Earth Farms. It's always great to see a company going the extra mile for something as important as food safety.
SALISBURY, NC – Food Lion has remodeled 31 stores in the greater Wilmington, N.C. market as part of the grocer’s new “Easy, Fresh and Affordable… You Can Count on Food Lion Every Day” strategy.
“Since announcing our new strategy, we’ve been doing a lot across the Food Lion chain to create positive change. We’re proud to continue that momentum by launching the first market of enhanced stores that bring all the elements of our new strategy to life to make shopping easier for customers,” said Beth Newlands Campbell, President of Food Lion.
The new format has expanded the selection in stores with thousands of new items with a dedicated Gluten Free section and a wide selection of quality fresh produce and meat that carries a Double-Your-Money-Back guarantee, according to a press release.
“Our customers told us that they want a grocery experience where it’s easy to shop, easy to save and easy to figure out what is for dinner tonight. In these enhanced stores, we’ve worked to deliver just that. We invite our customers and the Wilmington community to come out and experience grocery shopping reimagined at Food Lion and let us know what you think about our new stores,” she added.
To celebrate the launch of the new format stores, Food Lion is giving away $10 gift cards to the first 50 customers at each of the 31 locations every day from Wednesday, August 20 through Saturday, Aug 23, according to a press release.
“Despite offering low prices and great opportunities to save in our stores every day, we know that there are still many people in our local communities struggling with hunger. We want our customers and communities to know they can count on Food Lion to be their partner in eliminating the choices families are forced to make when they’re hungry, like choosing between dinner and rent or gasoline and buying groceries,” added Newlands Campbell.
Food Lion has also celebrated the launch of the 31 stores by donating 150,000 meals valuing $31,000 to the Food Bank of Central and Eastern North Carolina, Second Harvest Food Bank of Southeast North Carolina and 27 local feeding agencies in the Wilmington, N.C. region.
Food Lion will continue to roll out storewide enhancements in the market over time with the launch of additional 45 remodeled stores in the greater Greenville, N.C. market in November.
NEW MEXICO – The state of New Mexico is launching a “New Mexico Certified Chile” trademark to protect its chile from foreign competitors by putting it in the same protective status as Idaho potatoes or Florida oranges.
The Spokeman-Review reports that Governor Susana Martinez, members of the New Mexico Chile Association and other officials unveiled the program before a packed room of chile aficionados on Tuesday.
“Whether you prefer red, green or Christmas (a mix of both), you want to know that your chile was grown in New Mexico by farmers with generations of experience, in rich soil and the kind of intense sunlight that makes this flavorful food,” she said.
This program builds on an existing law that makes it illegal to advertise any products as New Mexico chile unless it is grown in the state.
KOB4 News reports that foreign competitors are known to flood American markets with lower quality and less expensive chile and even falsely label it as grown in New Mexico. Farmers say that these false claims take money away and weaken the overall reputation of the New Mexico product.
Chile farmers in New Mexico are currently seeing a robust harvest with farm workers hauling the state’s famous green chile by the ton.
“We did have some rain but we just had luck on our side,” said Glen Duggins, a local chile farmer. “Every time it rained, we needed the water, and it hasn’t hurt us. The chile is just beautiful – the mild, the hot, the extra hot – looks like a bumper crop!"
The chile industry has a strong impact on New Mexico’s economy. It supports more than 4,000 jobs in that state and has an economic impact of more than $400 million, according to KOB4 News. New Mexico is hoping this trademark will protect and enhance the industry.
JACKSONVILLE, FL - Winn-Dixie and BI-LO’s parent company, BI-LO Holdings LLC, has decided not to pursue its initial public offering that it filed for in 2013 under the name Southeastern Grocers LLC.
The company did not specify a reason for withdrawing its IPO in its filing with the U.S. Securities and Exchange Commission earlier this week, and BI-LO Holdings spokesman Brian Wright said via email to the Jacksonville Daily Record that the company doesn’t comment on these matters.
When speaking about the reasons the company withdrew its IPO, Francis Gaskins, Research Director at Equities.com, tells Reuters, “With not very exciting topline revenue and growing losses…it’s over leveraged. They don’t have the numbers that investors are interested in.”
The New York Times reports that Winn-Dixie filed for bankruptcy in 2005, emerging a year later. In addition, BI-LO spent a year in Chapter 11 protection from 2009 to 2010. In 2011, BI-LO Holdings purchased Winn-Dixie and joined the two brands, and moved its headquarters to Florida.
In September of 2013, Southeastern Grocers filed for an IPO of up to $500 million and stated that it was looking to repay debts and build working capital, according to the Wall Street Journal.
The Jacksonville Daily Record reports that after expanding this year with the acquisition of a group of stores from the Delhaize Group, BI-LO Holdings currently operates 830 supermarkets in eight Southeastern states under the Bi-Lo, Winn-Dixie and Harveys names.