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Mexican officials have blocked the agreement that allows the export and import of U.S. potatoes just weeks after the country opened its market on May 19th. Mark Szymanski, Spokesman for the National Potato Council, confirmed the news this morning.
The Mexico Potato Growers Association, otherwise known as Conpapa, has filed a lawsuit against Mexico’s Ministry of Agriculture to put a halt to all exports and imports of U.S. potatoes into the country, said Szymanski.
Although there’s little information on claims being made and when the filing will be taken up by courts, it is known that the U.S. Animal and Plant Health Inspection Service (APHIS) has stopped issuing phytosanitary approvals until border points are re-opened.
“Currently, we’re working well with APHIS and the USDA on understanding the situation,” Szymanski tells AndNowUKnow. “We always knew there would be bumps along the road with new markets.”
It is still unknown how long the ban is expected to last.
Stay tuned to AndNowUKnow as more information becomes available.
This year, Mastronardi Produce/SUNSET® is celebrating its 60th anniversary. Back in the 40s, Grandpa Mastronardi saw a need for greenhouse produce and pioneered the North American greenhouse industry. In 1954, the Mastronardi family founded Mastronardi Produce Ltd, an exclusive greenhouse growing company. From then on, Mastronardi Produce has been known as leaders in the industry. In 1995, SUNSET® pushed the boundaries of flavor by introducing a European tomato. For the first time in history, a tomato was called by name - Campari®. Today, Campari® is among many SUNSET® brands that are nationally renowned for their distinct flavor, versatility, and exceptional quality. SUNSET® has become known for their flavorful, innovative ideas and bringing new items to market successfully. CEO Paul Mastronardi tells us, “Our plan is to keep growing with our retail partners and flavor connoisseurs for many more generations. We can’t wait to see what the future holds.” Happy Anniversary!
Hy-Vee opened its first Market Café in South Dakota as part of a new concept to add full-service restaurants in many of its stores.
The café opened at the end of May in the Watertown, South Dakota Hy-Vee store. Its menu includes appetizers, salads, burgers, sandwiches and flatbreads. It will also have a bar that serves beer and wine, according to news publication Argus Leader.
Store manager Shane Conger said that customer reaction has been “very, very positive.” Customers can either order in front of a counter and be seated or be served by wait staff. The store added 45 employees for the café. 
At least five out of the seven Sioux Falls stores will receive either a Market Café or the larger Market Grille concept, which includes a large assortment of dinner entrees, according to Hy-Vee’s Assistant Vice President of Operations Tim Stupka.
“It’s absolutely amazing. I don’t know that we’ve ever had a food complaint,” Stupka said. “They’re fantastic.”
Hy-Vee plans to add up to 75 restaurant locations by 2016, according to the company’s website.
Two PACA violators in California and Florida have been restricted by the USDA from operating in the produce industry, according to a press release.
Calgreen Produce Corp., a Los Angeles, California-based company, has failed to pay a $7,924 award in favor of a California seller. Feras R. Mohammad was listed as the officer director, and major stockholder of the business.
Pangea Produce Distributors Inc., a Miami, Florida-based company, has failed to pay a $24,179 award in favor of a Tennessee seller. Rachel M. Badilla was listed as the officer, director, and major stockholder of the business.
In the past three years, the USDA resolved approximately 4,600 claims under the PACA involving more than $87 million. Individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed 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.
Bob Mariano, Founder of Mariano’s Fresh Market and CEO of its parent company, Roundy’s, is looking for bigger opportunities outside of Illinois to expand his new, namesake grocery chain. But will the acceleration in growth rate be enough to help out the struggling Roundy’s?
Roundy’s net loss for the first quarter of 2014 was $4.5 million, while same-store sales fell 5.3%. Currently, Roundy’s shares are around $5, close to its 52-week low and below the $7 per share at which the company priced a stock offering in February. Meanwhile, Mariano’s has been growing fast – and continues to grow fast – with 13 Chicago stores in December, 11 stores from former Dominick’s conversions, and 5 new stores being built from the ground up for a total of 29 by year-end.
“Opening Mariano’s in other markets is a real potential opportunity for us,” said Mariano, according to Crain’s Chicago Business. “We haven’t done the work yet to determine which market… but we clearly feel that Mariano’s can travel.”
Aside from the stock offering, Roundy’s has also suspended its dividend and refinanced debt to finance Mariano’s expansion, Crain’s Chicago Business reports. It also agreed to sell 18 Rainbow stores in Minneapolis to Supervalu and other local grocers for $65 million. Mariano said the transaction would allow the company to “better focus strategically” on growing the Mariano’s banner in the Chicago market and strengthen the business in core Wisconsin markets. The move had some analysts speculating that Mariano may spinoff Roundy’s.
“Given the relative disparity of the valuation between the Mariano’s chain and the rest of Roundy’s, it would make sense to spin it off at the right time,” said Andrew Wolf, analyst at BB&T Capital Markets. “If you read between the lines, that’s pretty much what they’ve been saying.”
Because Roundy’s doesn’t report numbers for its store brands, it’s unknown how profitable Mariano’s is; although, Mariano suggests that “mature” locations see about $1 million in sales per week, about twice as much as Roundy’s-owned stores in other markets.
To put things in perspective, Mariano’s stores require about $5.5 million of initial investment. Compare that to $10.5 million for a Whole Foods store. Return on invested capital within four years is 35 to 40% for a Mariano’s store, while Whole Foods is 31%, according to Crain’s Chicago Business. Still, Roundy’s reportedly has $742 million of long-term debt, which David Livingston, a Milwaukee-based grocery consultant, says is a critical weak spot.
“Whole Foods and other competitors feel that Mariano’s is vulnerable simply because at some point they can’t operate their stores at a very high level if they continue to remain in that much debt,” said Livingston.
Mariano remains confident that the company can succeed by staying on top of customer demand and trends.
“At the very least, you have to be on-trend, and to be really great you have to be at the forefront,” said Mariano.
What’s next for Roundy’s? Will Mariano spinoff the company, or will he keep pushing ahead? Stay tuned to AndNowUKnow as we follow any further developments.
Mann Packing launched new Family Favorites™ packages. It redesigned its full line of fresh vegetable packaging to better represent the company’s third generation of family farmers and to be more consumer focused.
“We tested several designs in focus groups and the visuals with the strongest response included all the attributes of Mann Packing: local farmers, family, generations, natural and authentic,” Director of Marketing and Innovation Kim St George said. Mann’s is celebrating its 75th anniversary this year as a grower/shipper/processor.
The redesigned packages have been developed over the last nine months, according to a press release. They feature a new Mann’s Family Favorites logo with a natural color palette and a QR Code that takes you to Mann’s website for recipes and usage ideas. Select packages will come with a photo recipe as well.
“The new upscale package design also helps differentiate Mann Packing’s full line of fresh-cut vegetables from the competition with its distinct imagery, product photography and colors, and will stand out on the shelf at the store level,” St George said. “When you put the entire line together, it carries a strong message about where the category is headed as a destination for shoppers.”
The company will showcase the new packing at United Fresh as part of the Grower Shipper Pavilion followed by a full rollout nationwide in the US and in Canada.
Limoneira reported a strong increase in lemon sales in its second quarter, leading to an uptick in revenue and operating income. Lemon sales jumped 17% during the period, reaching $18.1 million.
“Based on lemon prices we are currently enjoying, our results for the first six months of fiscal 2014 and our positive outlook for the back half of the year, we are raising our previously issued guidance for the full year results of operations,” said Harold Edwards, President and CEO. Importantly, even with the well-publicized drought in California, we continue to believe that our extensive water rights, usage rights, and pumping rights will provide us with adequate supplies of water as we begin our seasonally strongest quarter of the year.”
Lemon sales were comprised of approximately 78% to U.S. and Canada-based customers, 19% to domestic exporters, and 3% to international customers, according to a press release. The company anticipates seeing favorable prices on lemons for the rest of the year, which are already significantly higher than historical averages.
Revenue increased to $24.8 million, compared to $23.3 million from the same period last year, an approximate 6.4% increase. Lemon sales accounted for $18.1 million of the company’s agribusiness revenue for the quarter, which was reported at $23.6 million compared to $22.2 million in the same period last year, an approximate 6.3% increase.
“Our second quarter financial results reflect the steady progress we are making with our business,” said Edwards. “We continue to grow our top line, reflecting our expanding agribusiness, including our lemon and citrus sales. We also remain pleased with the contributions of our acquired orchards, which generated approximately $2.6 million of operating income in the first half of fiscal year 2014.”
As of 6:31 ET on June 9, Limoneira shares were up $0.24 to $23.18, a 1.05% increase.
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