EMERYVILLE, CA - After first filing its IPO confidentially on March 26, 2019, Grocery Outlet made another move to go public this week. The grocer reportedly filed on Monday with the SEC to raise up to $100 million in an initial public offering, according to a report by Nasdaq. The filing was first announced on IPO investment manager Renaissance Capital’s website.
While Grocery Outlet did not disclose pricing details, many in the industry believe the retailer is well positioned to meet its goal mark. Specifically, the news source noted that Grocery Outlet hit $2.3 billion in sales for the 12 months ended December 31, 2018, and $2.1 billion in the same period during 2017.
BofA Merrill Lynch, Morgan Stanley, Deutsche Bank, Jefferies, Barclays, Goldman Sachs, Guggenheim Securities, UBS Investment Bank, and Cowen are the joint bookrunners on the deal, according to the news source.
For more breaking news like this, stay tuned to AndNowUKnow.
ISSAQUAH, WA - Last week, Costco Wholesale Corporation reported sales results for April. The four-week period ending May 5, 2019, saw the company’s sales rise prodigiously—increasing 7.3 percent to $11.60 billion from $10.81 billion last year.
And as a result of those positive numbers, analysts at The Motley Fool report, Costco’s stock soared last week. The company’s stock charted as high as $248.26 per share, according to Google Finance, belaying fears, the analysts suggested, brought on by slow March comparative sales increases.
The company also reported net sales of $99.89 billion for the thirty-five weeks ended May 5, 2019—an increase of 8.3 percent from $92.24 billion during that same period last year.
Describing comparative sales growth headed into March, The Motley Fool noted: “Costco's comp sales growth would have been a little below 5% without the Easter shift. Most retailers would be delighted with a result like that, but Costco shareholders were hoping for more. In the first half of fiscal 2019, comp sales rose about 7% year over year.”
This week, Costco’s numbers slid back from a $248.26 per share high last Friday. Will Costco continue to reap the rewards of strong sales and investors’ confidence? AndNowUKnow will continue to report.
WENATCHEE, WA - Cherries are my number one summertime fruit. I know that come July, I’ll be eating cherries by the handful, so you can imagine my delight at the fact that CMI Orchard’s American Dream® retail program is expanding from apples to include cherries.
“Our cherry program follows hot on the heels of CMI’s recent launch of our American Dream apple carton, which was presented at PMA in October 2018 and kicked off commercially with several retailers in alignment with Veterans Day last November,” George Harter, Vice President of Marketing, said in a recent press release. “We experienced tremendous momentum and support for this program with apples and adding cherries just makes sense—especially with stores looking to continue American Dream promotions into the summer. CMI is expecting cherry harvest to commence around the second week of June and the crop, and sizing looks like it’s shaping up to be a great season.”
Harter also noted that this move will bring about opportunities for holiday retail promotions, kicking off with Independence Day and running through the month of July when Northwest cherries are peaking.
For those wondering just how a retail display would look, the American Dream cherry program will be shipping in a new 5 kg lid for export plus an 18/20 lb lid for domestic shipments. Rochelle Bohm, Brand Manager for CMI Orchards, said that the boxes can be stacked to create an eye-catching patriotic billboard. According to Bohm, cherry displays can boost sales by more than 30 percent as most customers do not go shopping specifically to buy cherries, but instead pick them up when they catch their eye in store.
“We’re eager to work with retailers to set up American Dream promotions this summer,” Bohm said. “With Independence Day hitting prime cherry season where volumes will be ramping up, retailers can use the boxes to drive even more of those important impulse cherry purchases in stores for holiday promotions and throughout the summer selling months. Like CMI’s American Dream apple program, the cherry program is tied to a feel-good component. We return a portion of proceeds from the sale of each box to the military or veteran cause deemed most important to each of our participating retail customers. We’ll have display contests and lots of exciting things happening in alignment with this program, so stay tuned and look for our American Dream cherry boxes this cherry season.”
Harter added, “We are proud to honor and celebrate the service and sacrifices made by our veterans and their families. Give us a call so we can get some great retail promotions set up and talk about ways to give back to causes that are important to your company and region.”
For the latest in how our industry is making the most of summertime produce, keep reading us here at AndNowUKnow.
BENTONVILLE, AR - While Walmart and Amazon have been neck-in-neck in the grocery retail race, the former might have just played its wild card—and the industry is shook. This week, Walmart revealed that it is adding a new perk to its grocery delivery services to complement its same-day delivery option; the retailer announced it is adding free NextDay delivery for all shoppers, no membership fee required—which could be a direct hit to Amazon’s own membership-required one-day Prime delivery service.
Currently, NextDay delivery, which includes up to 220,000 Walmart items and is available on eligible orders of $35 or more, is only offered to shoppers in Phoenix and Las Vegas. The retailer did disclose, however, that it does plan to roll out this delivery service to more cities in the coming months, ultimately reaching approximately 75 percent of the U.S. population in 2019 and 40 of the top 50 major U.S. metro areas.
News source MarketWatch believes that this move on Walmart's behalf is not without major costs of up to $215 million. Analysts ascertained, based on Walmart’s online sales, that matching Amazon’s one-day shipping will force Walmart to make incremental investments—investments that will ultimately “win over the long term” since analysts believe Walmart has “enough infrastructure in place to keep the impact quite manageable.”
Walmart, however, refuted analysts and said its new delivery option will help costs, rather than hinder them.
“Our new NextDay delivery isn’t just great for customers, it also makes good business sense. Contrary to what you might think, it will cost us less—not more—to deliver orders the next day,” said Marc Lore, President and CEO of Walmart E-Commerce U.S., in a press release. “That’s because eligible items come from a single fulfillment center located closest to the customer. This means the order ships in one box, or as few as possible, and it travels a shorter distance via inexpensive ground shipping. That’s in contrast to online orders that come in multiple boxes from multiple locations, which can be quite costly.”
Lore continued: “We can offer fast, convenient shipping options because we’ve built a network of fulfillment assets that are strategically located across the U.S. We’ve also done extensive work to ensure we have the right products in the right fulfillment centers based on where customers are located and what they’re ordering.”
Will Amazon hit Walmart back with an unforeseen move? And will Walmart’s new NextDay delivery actually help it pull off a big win over one of its biggest competitors? AndNowUKnow will continue to report.
IRVINE, CA - Good morning, AndNowUKnow readers!
Today, I am bringing you some of the category and weather news from around the industry. Check back twice weekly to see where the rain is falling, the sun is shining, and everything in between.
GET READY FOR CHERRY PRICES TO SKYROCKET
Two major storms and colder temperatures are lining up to hit San Joaquin Valley growing regions that have the possibility to take out the cherry crop and cause serious damage to the stonefruit crop.
Starting Wednesday night into Thursday, a storm is anticipated to hit all growing regions up and down the SJ Valley dropping between .5” to 1” of rain over the two-day period. There is a second storm scheduled to hit this Sunday with up to 1” of rain and a third storm potentially for next Tuesday, May 21. Along with the rain will come cooler temperatures starting Wednesday with highs only in the low 70°s (with some isolated 60°s) and minimums in the low 50°s for the next 10 days. Although this weather is not unprecedented for this time of year, it is extremely unusual.
Tony Taviano from B&B Imports in Fresno said these storms have the potential to wipe out a large part of the Bing cherry crop and might cause shippers to call for an “act of god” on contracts. Furthermore, Tony said this weather may sow the seeds for a challenging summer marketing season of stonefruit and potential ramifications that extend into the fall for table grapes.
Stonefruit, as we mentioned last week, can experience issues with staining from rain and possible hail damage.
We wish only the best for the growers who have their crops in peril and their investments on the line, but we need to make everyone aware of the possibilities.
WET VEG AND STRAWBERRIES ALSO TO BE AFFECTED
The same storms hitting the SJ Valley will also hit the coastal California growing regions of Salinas, Santa Maria, and Oxnard causing definite harvest issues. As of right now, Salinas is expected to receive approximately 1” this Wednesday and Thursday. The second storm on Saturday and Sunday may bring up to .5” and next Tuesday has the potential of .25” of rain. There, rains could affect the harvest of strawberry crops and lettuces.
DESERT REGIONS WILL NOT SEE ANY RAIN
Desert regions are not expected to see any rain from these storms, but they will experience cooler temperatures with maximum temperatures in the 80°s and minimum temperatures in the low 60°s over the next 10 days.
Thanks again, and we'll be back later this week with another weather report!
NEWARK, DE - For those attending this year’s Fresh Connections, hosted by Produce Marketing Association (PMA), you’re in for a show that is out of this world. With former astronaut José Hernández as the featured speaker, and retailers from Walmart Mexico, H-E-B Mexico, and Super del Norte joining together to discuss consumer trends and retail development, its an event that should not be missed.
“Most of Mexico’s major retailers attend this event, offering an unparalleled networking experience. PMA Fresh Connections: Mexico does what its name says—it connects people with each other, opportunities, new products, information, technology, and more,” said Nancy Tucker, PMA Regional Vice President for Latin America, in a recent press release. “Our conference sessions and speaker lineup are impressive, and participants will learn from experts in their fields. We also can’t wait to hear what former astronaut José Hernández has to share with our industry about overcoming adversity and helping others to succeed.”
The press release noted that the event, which is now in its 12th year, brings together U.S., Canadian buyers, and Mexican retailers, with Mexican produce growers and business solutions providers. Along with networking opportunities, activities include education sessions and an expo. The event will be held in Guadalajara for the first time since 2013, at the Hotel Hard Rock in Guadalajara, Jalisco, Mexico, from May 29-30.
Prior to the keynote address presented by José Hernández, those attending will learn about consumer trends in Mexico and how retailers are both anticipating and responding to these trends. Speakers include Pedro Varela Mansur, Director of Fruits and Vegetables Purchasing, Walmart Mexico; José Luis Rodriguez, Deputy Director, Fresh Fruits & Vegetables, H-E-B México; Servando Carbajal Ruiz, Founding Partner and General Director of Super del Norte and President of Corporativo del Norte.
Hernández will then present his keynote, titled “The Star Harvester,” on May 29 prior to the expo opening. Growing up in both Mexico and the United States, Hernández did not learn English until he was 12 years old. As a young man, he worked alongside his Mexican immigrant parents and other farmworkers harvesting crops. He then went on to earn both a bachelor’s and master’s degree in electrical engineering, and became an expert in x-ray physics. He is currently an advisor to the Mexican Space Agency.
The expo, which features fruit and vegetable growers, as well as business solution providers that serve the industry, will be open from 1:30 p.m. to 5 p.m. on May 29. The day’s activities also include a networking lunch and evening reception.
Attendees will then start the day on May 30 with breakfast and a keynote presentation on “New Leadership and the Impact on Mexico’s Fresh Produce Industry.” The speakers will explore political and governmental shifts, and how they impact the fruit and vegetable supply chain. These speakers are: Georgius Ricardo Gotsis Fontes, CEO, Eleven Rivers Growers LLC; Aldo Mares, President, Aneberries (National Berry Exporters Association); and Lizeth Quintero, CEO, Mexico Calidad Suprema.
After this presentation, the expo will continue from 10:30 a.m. to 1:15 p.m. on May 30.
PMA released a list of buyers attending Fresh Connections, which include: Baldor Specialty Foods, Charlie's Produce, Hello Fresh, LA & SF Specialty, Superking Market, Sealdsweet/Greenyard, Fru-Veg Marketing, Inc., Interrupcion Fair Trade, The Vanguard International Group LP, Lakeside Produce, Walmart Mexico, H-E-B Mexico, Super Del Norte, Chedraui, Frutas Y Verduras San Miguel, Tiendas Soriana, Super San Francisco de Asis, and more.
For the latest on what’s happening in the produce trade's world, keep reading us here at AndNowUKnow.
YAKIMA, WA - It’s with heavy hearts that AndNowUKnow announces the passing of Domex Superfresh Growers® Founder Robert “Bob” Chester Kershaw. The company made the announcement this Monday. Kershaw was 81 years old.
According to the company’s announcement, Bob was born February 3, 1938 in Yakima, Washington, to Ronald and Betty Kershaw. His family had migrated from Philadelphia in 1880, planting apple and pear orchards in the arid central Washington State land; dirt in which Bob would cultivate his career and life.
An avid mountaineer, ski-racing, hiking and climbing in the rugged Cascade Mountains provided a welcome respite for Bob, from hot summers toiling with his father Ron in the orchards. Bob was active in the mountains his whole life, even working on his ski turns 5 weeks before his death.
Bob graduated from Yakima Senior High School in 1956 and entered the University of Washington as a freshman that year. After completing his studies in economics in 1960, Bob returned to Yakima to marry Karen Helliesen and father two children, Kristin in 1965 and Robert in 1969.
Bob’s first job after college was working for Gilbert Orchards. While Bob liked to tell the story of beginning his farming career building boxes for the Gilbert family, it was true as well that is where he honed his farming and warehousing knowledge—skills that would eventually help him build his own business. Some might even say Bob’s core professional task never changed. While running Kershaw Companies with his brother and best friend Ed years later, Bob proved a natural talent at balancing profit & loss statements, negotiating agreements, and devising strategic planting schedules. But it was simple things like stoking a smudge pot at 2 a.m. or coaxing a wind machine to life to ward off the frost which Bob delighted in. It was Bob’s fierce attention to detail and insistence on doing even the "small things" right that helped lift a small company to one that is now considered a gold standard in its industry.
In 1969, Bob and brother Ed returned to the family farm, eventually conceiving Domex Superfresh Growers in 1981. Their project to bring other grower’s fruit to market grew into a vertically integrated organization to include the Kershaw farming interest, warehousing, sales, marketing, and logistical services. Successive generations of Kershaw family have bolstered the company reserves—Brian (deceased), Robert, Kevin, and Kristin. Today, it is one of the largest in the country.
Bob was lover of news, politics, and a good debate. He always kept his team guessing and often charted work strategy from his beloved sail boat or while skiing around the world with his second wife, Skippy.
For those remaining, Bob’s presence as the teacher, mentor, friend, and brother is complete, Domex Superfresh Growers noted. Bob’s lessons, friendship, and life’s work remain now more robust than ever—physically on the same plot of land from three generations of antecedents and, more importantly, in the lives of those who knew and loved him. The company notes that Bob’s two children Kristin and Robert both stand as vigilant standard bearers to his edict to be skeptical and critical, but always optimistic, especially when times are challenging.
The family suggests memorial contributions be made to the hunger-relief network, Second Harvest. Donations may be made online at www.2-harvest.org, and checks may be mailed to: Second Harvest, 1234 E. Front Street, Spokane, WA, 99202.
We here at AndNowUKnow extend the Domex Superfresh Growers team and all Bob Kershaw’s survivors our sincere condolences.
FOLSOM, CA - Blueberries are a summertime staple—but couldn’t they be more? I had the chance to speak with Victoria De Bruin, Marketing Manager of the U.S. Highbush Blueberry Council (USHBC) to learn more about the association’s goals and initiatives for 2019, and how it's helping blueberries get into every shopping cart year round.
De Bruin comes to this position from a unique place. She previously worked as Executive Director of the California Association of Collectors; Marketing Director for UC Davis and the California Department of Public Health; and a Marketing Director for the California Grocers Association. Her most recent position was as Branding Director for Farm Fresh To You, Full Circle, and Capay Organic Farms, where she oversaw brand development, expansion into new markets, consumer research, and public relations.
“USHBC supports its members—blueberry growers, marketers, and packers—through global promotions, health research, consumer insights, and market research to increase consumption for all forms of blueberries,” Victoria tells me. “Our efforts are geared toward driving demand across our primary audience of consumers, foodservice and health professionals, and food manufacturers.”
With consumers being a core focus of USHBC’s program, the council has a few tricks up its sleeve on how to drive demand for blueberries all year long:
- Targeted advertising that reaches consumers at key moments in their day
- Influencers, like Tia Mowry-Hardict, who offer lifestyle and recipe inspiration to millions of followers online
- Advertorial and earned media placements that highlight consumer demand and the versatility of blueberries to foodservice professionals in order to stimulate more blueberry items on menus for breakfast, lunch, dinner, and dessert
- Advertorials, earned media, messaging, technical assistance, and recipes for food manufacturers that inspire the use of real blueberries—not artificial ingredients—in new products
- Scientific research that promoters the health benefits of blueberries
- New recipe development for USHBC’s website that readily brings consumers what they’re searching for online
“At the end of the day, our goal is to further strengthen our relationship with consumers, ensuring blueberries are front of mind and top of shopping list,” Victoria shares.
In addition to driving fresh blueberry demand all year, I ask Victoria what other insights she has on the category, and what trends have driven the association’s activities. The health benefits of blueberries, she explains, will be a key component in USHCB’s messaging.
“We’re continually funding new research to show how blueberries can have positive impacts on the health of consumers,” Victoria says. “There’s more to come in 2019 that will further show consumers how blueberries contribute positively to health in the areas of cardiovascular, brain, insulin response, cancer, and gut health.”
The council is also working to ensure that blueberries are seen as more than just a summertime fruit, educating consumers on the versatility of the fruit in both frozen and fresh form.
In line with its health-forward messing, the council’s Highbush Blueberry Farm to School Playbook teaches children healthy habits. The playbook is packed with nutrition facts, recipe inspo, activities for engaging students, and information for how schools can mazimize their Farm to School programs.
“Lastly, we are opening up new international markets for blueberries and increasing demand overseas,” Victoria concludes. “Recently, USHBC worked with the North American Blueberry Council to gain access for U.S. fresh, frozen, and dried blueberries in Myanmar and Vietnam. Continuing to be a global player, we launched a new export database this year that has complete international market data, including information on trade agreements and regulations, consumer preferences, exchange rate trends, and more.”
For the latest in fresh produce updates like this, keep reading AndNowUKnow.
RIDGEFIELD, CT - The Chefs’ Warehouse is expanding its operations in a big way—building the Connecticut-based distributor’s West Coast footprint with a new presence in Los Angeles County.
The distributor of specialty food products recently announced that it plans to lease a 231,000-square-foot facility in City of Industry, California, to support the expansion of its specialty offerings and meet the demand of a growing customer base in that region.
“We are excited to expand our foothold in Southern California, especially to our talented chef-customers,” said Tina Roberts, Regional Vice President, Southwest. “This new warehouse will be the key foundation for providing the highest quality ingredients available in the market today. This facility also strengthens our ability to provide excellent service to our customers throughout the Los Angeles metro area and beyond.”
According to a press release, this new facility will contain a state-of-the-art Allen Brothers meat and seafood processing facilities, to focus on the development of the company’s center of the plate brands, as well as a temperature-controlled specialty produce space—supplying fresh offerings to chefs and restaurants in the LA area.
For more on all things fresh produce, keep reading AndNowUKnow.
KEASBEY, NJ - Doubling down on a commitment to brick-and-mortar retail, Wakefern Food Corp.-owned ShopRite announced plans to open a full-service, state-of-the-art store in Connecticut. The new store, which will be owned and operated by the Garafolo family and the family’s company Garafolo Markets, has a ribbon-cutting ceremony planned for May 18 at 8 a.m.
“We are very excited to bring our ‘Fresh Marketplace’ ShopRite to the residents of Cromwell with the opening of this state-of-the-art shopping destination,” said Harry Garafalo, whose family also operates ShopRite stores in Milford, East Haven, Stratford, Orange and Hamden, CT. “We really believe the store will become an important part of the fabric of the local community.”
According to the press release, the store will take up 67,000 square feet and will include a number of new shopper-friendly features. The store will have a community room and culinary center for cooking workshops and demonstrations. Free nutrition counseling services will be available to customers, staff, and pick-up and home delivery online services, from an on-site registered dietitian. Fresh prepared meals will be available to customers along with custom salads and delicious dishes from in-store eateries like the Grill, Sizzling Wok and Sushi, House Smoked BBQ, Go Bowls, and Natural Foods—which can be taken home or enjoyed in the café. The store will also have an extensive array of organic, local, and gluten-free foods.
The new store will also feature a range of to-notch departments throughout the store, including:
- From-scratch bake shop: serving up special occasion cakes and freshly made bread
- Meat: with trained butchers
- Full-service seafood: featuring daily, fresh catch deliveries
- Floral shop: with fresh flowers
- Full-service deli and prepared foods: with a grilling station and grab-and-go items, freshly prepared hot entrees, salad and olive bars, and made-to-order sandwiches
The new store is set to employ around 280 people, with hiring continuing throughout the store opening. The new shopping format also incorporates innovative energy-saving and sustainable technology, including LED lighting and environmentally friendly refrigerant systems.
The ribbon-cutting ceremony will be attended by Cromwell Mayor Enzo Faienza and representatives of the local Council, Chamber of Commerce, and area non-profit groups.
Keep reading AndNowUKnow for more ground-breaking stories about retailers breaking ground.