RICHMOND, VA - Performance Food Group Company (PFG) has recently announced its acquisition of foodservice distributor Reinhart Foodservice from Reyes Holdings—a transaction valued at $2 billion.
“We are excited to announce the strategic acquisition of Reinhart and welcome them to Performance Food Group,” said George Holm, PFG Chairman, President & Chief Executive Officer. “I’ve known the Reyes family for nearly two decades, and they have built and grown an incredible company. We believe the addition of Reinhart and its complementary strengths will expand Performance Foodservice’s broadline presence, improve our network efficiency, and help us achieve our long-term growth goals. This transaction provides us with greater overall scale, a diverse customer base, including a solid base of independent customers, and builds upon our strong distribution platform. We believe these attributes along with attractive financial characteristics will enhance our ability to continue to deliver the service our customers need to succeed and create shareholder value."
This acquisition of Reinhart’s distribution footprint will enhance and expand PFG’s existing distribution platform and market density, according to a press release. By the third year following the acquisition, PFG anticipates $50 million in annual run-rate cost synergies.
“We are excited to partner with PFG and believe this acquisition provides meaningful benefits to our customers and expanded opportunities for our employees,” said J. Christopher Reyes, Reyes Holdings Co-Chairman. “PFG has a solid track record of growth and leadership in our industry. We believe our strengths and the strong cultural connection our companies share will support continued success for many years to come.”
After the acquisition is completed, PFG will be positioned as one of the largest distributors in the country, with approximately $30 billion in net sales.
“Reinhart Foodservice understands the important role our associates play in our success. We have proudly invested in our people and infrastructure to build our business, and we’re excited about this acquisition knowing that PFG supports a similar approach,” said M. Jude Reyes, Reyes Holdings Co-Chairman.
To read the full details of the acquisition, click here.
Will this acquisition rock the world of food distribution? AndNowUKnow will continue to report.
TAMPA, FL - From Secretary-Treasurer to Vice Chairman and now Chairman of the Board for the Reusable Packaging Association (RPA), Michael Wasson has climbed through the ranks during his time on the board with a vast wealth of experience backing him up. Wasson also chaired the RPA’s Operations and Logistics Committee in 2017 in conjunction with his current role on the Board of the Association for Supply Chain Management (ASCM). His 20 years of broad-based supply chain and operations experience in large-size organizations will bring much insight and perspectives in his new role.
“I am excited to lead a strong Board to strategically position RPA during a time of rapid transformation on how products are packed and moved in supply chains,” said Wasson. “With reuse as the preferred approach to manage packaging materials sustainably, RPA’s primary role to raise awareness about reuse has never been greater. I am honored to follow Rick Sasse’s leadership at RPA in advancing the industry opportunities for all association members.”
CEO of Paxxal Ben Stoller will serve as the new Vice Chairman, while Kevin Mazula, CEO of RM2, will now be the new Secretary-Treasurer. David Kruger, President of TriEnda Holdings, has also been welcomed as a new Board member.
Hillary Femal, the previous Chairman of the Board from 2015-2016, will now be occupying a new staff role as Chief Marketing Officer. Her 15-year career in the reusable packaging industry has led her to hold roles such as Vice President of Sales and Marketing for 48forty Solutions and Vice President of Global Marketing for IFCO Systems. She will now lead RPA’s marketing programs to increase awareness in sustainable packaging systems.
“RPA is enhancing our capabilities to support the growth of the reusable packaging industry and to advance the common business interests of member companies,” said President and CEO Tim Debus. “With much attention around the world on the preference to reuse packaging in circular economy models, RPA is pleased to add Hillary Femal to our team to help demonstrate how our members offer product and service solutions for the adoption and optimization of reusable packaging systems.”
Will the new additions revolutionize the reusable industry? Keep following AndNowUKnow regarding this hot topic.
TEMPLE, PA - Organic Produce Summit is creeping up on us, and I for one can’t wait to head to Monterey and get my fill of the latest and greatest in organic goodness. One such company that is sure to wow me—and the industry—is Giorgio Fresh, which will be showcasing its full line of organic mushrooms. I spoke to Greg Sagan, Executive Vice President of Sales and Marketing, to learn more.
“Giorgio is the largest organic mushroom grower in the United States and we continue to increase our organic production,” Greg begins. “We are a one-stop-shop for all organic varieties, including exotic mushrooms like shiitake and royal trumpet.”
A family-owned company for over 90 years, Giorgio knows a thing or two about growing quality mushrooms. In fact, its emphasis has always been on ensuring the highest-quality possible—while still innovating the category.
“Items like Savory Wild, our plant-based, healthy snacking solution, highlights Giorgio’s place in on-trend categories like jerky. Our BLENDABELLA™, a tapenade of diced portabella mushrooms, vegetables, and herbs provides consumers with endless recipe options from quick appetizers to gourmet creations,” Greg shares.
Believe me when I tell you, consumers will be unable to stop themselves from adding these products into their daily routine.
For the latest on OPS-related news, keep reading AndNowUKnow.
CAPISTRANO BEACH, CA - When it comes to organics, vision is everything, but only when paired with exceptional execution. LIV Organic Produce is one of those companies bridging the gap between the growing consumer demand for premium organic produce and what retailers and foodservice operators can, want, and need to offer for their own competitive edge and benefit in the marketplace. By partnering with growers throughout California, Washington, Oregon, and Mexico, LIV Organic creates a unique year-round program offering organic citrus, hard squash, potatoes, onions, tomatoes, and melons for its customers.
“Our goal is to bring only the most premium products to our partners’ programs and offer exceptional value from the field to the produce department and the foodservice table,” Anthony Innocenti, Co-Founder, shares with me. “We will move around, region by region, to find the best of what is being grown organically with the highest integrity and best flavor. Our growers are in their fields and groves every day ensuring this unparalleled commitment to quality.”
Differentiation is key within the competitive organic space. And much of that, for LIV Organic, is who the company brings into its operational fold and how they execute their vision.
“We build our relationships on a foundation of trust and integrity that is an integral part of our program that you can taste in the fruit. Working so close with our growers allows the retailers to be confident in the product we are providing and our field inspectors are in the groves daily ensuring the fruit is being harvested at the perfect time,” Carrie Briones, Sales and Grower Relations, shares with me. “The years of experience combined on the LIV team gives us an edge in reacting to issues and putting together successful planning and execution.”
Anthony adds that the team works exclusively with family farms, most of them smaller and multi-generational.
“Their stories are part of the authentic fabric of who we are. Consumers can hear their stories through our packaging, website, and social media,” he notes.
LIV Organic will have its team at the Organic Produce Summit in force just in time for the summer push. So, come one for all and learn more.
“From citrus to sweet potatoes, it really has to do with the group of family farms that are supplying us,” Anthony says. “We have allowed them to help us engineer the items we will specialize in because those are the crops they have grown over their long careers and decades of being stewards to the ground.”
It truly is about the authenticity at LIV Organic, bridging the gap between these families who grow the highest quality organic crops and the best retailers and store shelves.
“Believe me, we ALL get excited when we see a grower walk into his or her favorite store and touch the fruit they worked so hard to produce,” Anthony says with a smile.
This sentiment and vision that goes into each piece of produce is one that Anthony values above all else—and believe me, you can taste it in LIV Organic’s fresh fruits and vegetables.
Please visit LIV Organic and OPS booth #113 to see it all for yourself!
AUSTIN, TX - If you’ve been in attendance at any of our industry’s trade shows in the last couple of years, then you’re probably well aware that consumers are clamoring for anything local and healthy—two concentric circles that Whole Foods Market has long dominated. But, with Sprouts Farmers Market, Costco, Wegmans, Walmart, and even convenience stores tapping more small independent brands, Whole Foods is finding that its seat at the head of the “local” table is a precarious one. In response, Whole Foods held a Local Supplier Summit on June 20th to remedy its supplier relations, build new partnerships, and launch a new We Love Local campaign.
According to a report by the Boston Globe, as part of Whole Foods’ redoubled efforts to support and offer local brands, the retailer is aiming to expand its supplier count and bolster sales by doubling the number of its staff working on local programs, launching local Wednesdays, and offering in-store demo programs that are estimated to increase sales by 200 percent. This commitment was shared with the 250+ North Atlantic-based suppliers in attendance at the Summit—many of which had voiced concerns about Whole Foods’ ailing local program.
“It wasn’t that local wasn’t important to us as we were launching with Amazon and Prime,” Don Clark, Global Vice President of Purchasing for Non-Perishables at Whole Foods, shared with the news source. “It just got muted. It wasn’t mentioned as much in our stores.”
Will Whole Foods’ latest efforts repair the grocer’s status as a haven for small, independent, and local suppliers? And will it increase its supplier partnerships by tenfold? To hear from many of the suppliers in attendance, read the full Boston Globe article here, and to stay in the know on all that affects the produce industry, keep reading AndNowUKnow.
SEATTLE, WA - Amazon has seemingly been leading the pack in the grocery delivery race, but has recently announced a new direction with the U.S. launch of a new service called Counter. The new service will maintain a network of staffed pickup points where Amazon customers can pick up their packages in a partner brick-and-mortar location. Amazon is kicking off the service with more than a hundred Counter locations in Rite Aids across the country, and plans on adding thousands more.
“Amazon is always looking for innovative and convenient ways for customers to ship and receive their orders,” said Patrick Supanc, Worldwide Director of Amazon Hub. “With Counter, we’ve leveraged our growing logistics network and invested in new, easy to use technology to give customers yet another delivery option rooted in flexibility and control. We are excited to partner with national businesses like Rite Aid, and local businesses in the future, to create an outstanding experience for our shared customers.”
Counter was originally launched in the U.K and was well received and drove strong customer engagement and additional foot traffic for partners. Because of the positive results, Amazon has launched the service in the U.S. in more than a hundred Rite Aid stores across the country, with 1,500 locations planned by the end of the year.
Though Counter is part of the Amazon Hub family, it is different from the retailer’s other services, Locker, Locker+, and Apartment Locker. Using Counter is simple; customers purchase items on Amazon.com just as they normally would, but will select one of the Counter pickup points based on their zip code, according to a press release. Once the package arrives at the store, customers receive an e-notification with a unique barcode to prompt them to go to the pickup location, have staff scan the barcode, and retrieve the package. Delivery to Counter locations works with Same-Day, One-Day, Two-Day, and Standard Shipping.
“Creating a seamless, convenient customer experience is a key element of our strategy and digital transformation,” said Jocelyn Konrad, Executive Vice President, Pharmacy and Retail Operations of Rite Aid. “Being the first store partner for Counter in the U.S. is a differentiator for Rite Aid and we believe our partnership with Amazon, that includes Locker, creates a stronger in-store experience for existing customers and new customers that come in to pick up their packages.”
Is this test service something other grocery retailers will soon mimic? Could the market be shifting from delivery to pickup? AndNowUKnow will continue to report.
NEW KENSINGTON, PA - Yerecic Label celebrated a first-time World Label Award for printing of the SUNSET® Campari label for Mastronardi Produce®, which was inspired by the ideas from Easy Fresh Cooking®. In 2018, it was the World Label Awards (WLA) 27th year running. The annual competition brings in the best candidates from around the globe.
“In sales, we often find it’s not what we say about ourselves that really matters, it’s what others say about us that matters,” said Art Yerecic, President of Yerecic Label. “This World Label Award from the WLA says we produce World Class quality labels.”
According to a press release, in the competition, six associations take part in the activity. There are six judges, one from each association. Each label must first win a first place award in their respective association in order to submit for the WLA. 72 entries were submitted in 21 classes, with Yerecic winning in Class 21 for Booklet Labels. This past year, there were 21 class winners and 12 honorable mentions. At the 2019 TLMI converter meeting, all the winners were revealed.
“Winning an award in the WLA competition is highly respected throughout the worldwide label industry indicating that the label converter has achieved a high level of competence in label production,” said Tony White, Chairman of the WLA Judging Panel. “The awards not only reflect the achievements of the label printer, but also the whole production process through from design to finishing.”
In order to attract and educate shoppers at the point of purchase, it really helps to apply a finished dish photo, recipe, and important customer information.
Congratulations to Yerecic Label from the ANUK team!
ANAHEIM, CA - Fresh produce professionals will soon gather on the grounds of the happiest place on Earth. The Fresh Produce & Floral Council (FPFC) Expo kicks off July 16, where new takes on design, new events, and a couple of extra touches of magic await key decision makers from the buy-side.
“The FPFC’s intention of consolidating the Northern and Southern California events is to provide a bigger regional show because there isn’t anything else like this in the northwest. So, this is extending our ability to reach and serve the entire West Coast,” Carissa Mace, President of the FPFC, tells me.
And it looks to be working. The attendee list continues to diversify with high-level foodservice and retail operators from further out in the U.S. and beyond. To welcome them, the FPFC is hosting an invitation-only event inside a private location of Disney's California Adventure park, right across from Disneyland, with passes for buy-side members and their guests to enjoy one of the most popular playgrounds in the world in addition to an opening dinner.
“This event was a huge hit last year. Retailer VIPs with executive titles can attend as well as exhibitors and high-level sponsors, and those who joined last year will tell you it was sensational. You have the opportunity to meet Disney characters, character artists, and we will be able to see the World of Color show,” Carissa shares with excitement.
See? I told you there would be magic!
And there are practical additions to the actual show floor, as well. Carissa explained that the FPFC changed the floor layout to elongate rows and encourage people to spend more time talking at each stop.
“We’ve changed how store-level employees are processed because we wanted to make sure the attendees are true professional partners that will promote the brands exhibiting at the store level, ensuring for both exhibitors and companies sending attendees that the right people are there,” she says.
The reach and quality of this produce event continues to grow, promising executive-level retailers from not just California, but also the rest of the U.S. and even Canada as it looks to serve the entire western market as efficiently as possible.
“For the first time, we are seeing Pacific Northwest retailers and we are hoping this will lay the groundwork to bring an event to the Northwest. Events don’t get to that part of the country very often, so we are hoping to find what those needs are and fill them. Imagine an FPFC event in Portland or Seattle!” Carissa adds.
Be sure your calendars are marked, this can’t-miss event is sooner than you think! Clearly, this is just the beginning.
MONROVIA, CA - We can talk about retail strategy all the live long day, but sometimes you need to hear it straight from the horse’s mouth—or in this case, the executive’s mouth. On its podcast, the retailer brought on two top executives to discuss burning consumer questions. Jon Basalone, President of Stores, and Mitch Heeger, Executive Vice President of Marketing and Merchandising, offered some insider info on what makes Trader Joe’s so gosh darn awesome.
Basalone and Heeger have collectively been with Trader Joe’s for over 70 years, bringing a mountain of experience to the table. They’ve seen a thing or two regarding retail trends. In this episode, they responded to multiple questions, but the three most pertinent to our industry—in my humble opinion—are as follows:
- How do you get to know what consumers want?
- Why are your stores so small?
- What happened with online delivery?
“We pride ourselves on listening to our customers and we always say that, you know, customers vote with their dollars,” Heeger explained. “We're always looking at, you know, products that sell really well. We're always looking at products that may not sell as well. So if something's not selling as well, we'll discontinue that product.”
Seems like a simple plan, but it’s obviously been working for Trader Joe’s over the years. Consumers often shop there because of beloved products they can’t find anywhere else. However, some consumers felt a little prickly toward the size of the store. Basalone, however, noted that this store size is intentional.
“We want our stores to be small and intimate, feel like a neighborhood store,” he said. “Having a cavernous store with wide aisles sounds appealing, but I think when you actually go in and start shopping in that environment, it's a little cold and maybe not as friendly as it could be.”
Throughout the podcast, both Heeger and Basalone commented on the Trader Joe’s brand extending past its products to encompass the entire store.
“Our brand is the store,” Basalone stated. “The real magic in our stores is when people find all that stuff that isn't on their list and not just from a, ‘Hey, that really helps us grow our business’ and all that kind of stuff. It's also fun and interesting for our customers to have that experience. We'll ask them, ‘Are you finding everything on your list?’ And, 'How much stuff is in your cart that isn't on your list?’ And it's amazing.”
Seems as though that simply can’t be addressed with online delivery options.
To hear the interview in its entirety, listen to the podcast episode here.
For the latest in retail news, keep reading AndNowUKnow.
LEAMINGTON, ON - The roots of intriguing and unique flavor profiles—pun intended—are impacting the level of differentiation that retailers are looking for in the fresh produce industry. One of the ways in which growers are making that leap from good to great, fresh produce varieties is through strong partnerships. Pure Flavor® vegetable seed partner Enza Zaden recently won the prestigious International Taste Institute Award for the company’s Tribelli® seed, which produces Pure Flavor®’s Aurora Bites Mini Sweet Peppers.
“After years of research and development with Enza Zaden, the Tribelli seed has proven to be a key item for our mini pepper program,” Pure Flavor President Jamie Moracci said.
Tribelli presents in a variety of colors with an exceptional taste profile; consistent flavor, size, and quality; and very low seed count, regardless of the season. This seed is packed under Pure Flavor’s Aurora Mini Sweet Peppers brand.
“Our partnership with Enza Zaden on this variety is an important one, we have worked very hard on building this brand of mini sweet peppers to meet the needs of retailers expanding their snacking category of items. As a vertically integrated grower, it is a true honor for Enza Zaden to receive the International Taste Institute Award for the Tribelli variety of mini sweet peppers," Moracci added.
According to a press release, the International Taste Institute ensures that all products are analyzed, judged, and scored following a strict and objective methodology through a blind tasting panel. Certified products are awarded the Superior Taste Award with one, two, or three stars, somewhat similar to Michelin stars.
And the Tribelli variety was awarded the Superior Taste Award with two stars.
“Tribelli has earned praise from the most sophisticated palates, proving that it is more than just a pepper. Tribelli is the concentration of an intense flavor, where taste is always what makes the difference in customers’ experience,” commented Jean-Francois Thomin, Marketing Manager for Enza Zaden North America.
So, what does the partnership entail? Enza Zaden partners with Pure Flavor to develop the product in high-tech greenhouses all throughout North America. Pure Flavor has grown the Tribelli seed that produces the multiple colors of Aurora Sweet Mini Sweet Peppers for the last five years.
“I believe Enza Zaden is cracking the code to more vegetable consumption worldwide by developing seed varieties that are flavor forward and building a portfolio of cutting-edge innovations like Tribelli,” Thomin continued.
It all comes down to listening to the consumer, as Pure Flavor shares.
“As a brand, we take great pride in marketing the exceptional characteristics of the strategic varieties that we grow. Consumers let us know all the time how much they enjoy the product and how easy it is use, no matter the application,” commented Matt Mastronardi, Executive Vice-President of Pure Flavor.
The company has developed an extensive variety of recipe ideas for consumers to create their own dishes from and, while we are trade news writers, we are also consumers, so we will be trying some of those very soon.