Fri. February 22nd, 2019 - by Kayla Webb

SAN FRANCISCO, CA - “We need to change what people think and feel.” While Valda Coryat, Director of Marketing for the National Mango Board (NMB), was addressing the NMB’s journey to revitalizing its brand’s story, this sentiment carried over across the entirety of this year’s BrandStorm™. The fourth annual United Fresh event was very much a three-day process of marketers locking arms with each other for the greater purpose of growing together as an industry and as individuals, and I, despite being a marketing newbie, felt as if I had not only glimpsed where marketing is headed, but just what the produce industry’s best and brightest are putting forth to keep fruit and veg a major contender in foodservice, retail, and beyond.

The fourth annual United Fresh BrandStorm™ Conference took place February 20-22 in San Francisco, CA

While we use the phrase “peeking behind the curtain” a lot at ANUK, the intimacy of BrandStorm 2019 truly felt like a peek behind the curtain—and I almost don’t want to share what secrets I had the privilege of uncovering…almost!

Mary Coppola, Senior Director of Marketing Communications, United Fresh Association“This year’s BrandStorm has been full of energy! Our speakers brought their A-game and did an excellent job keeping the audience engaged and interacting with new and familiar peers," Mary Coppola, Vice President, Marketing Communications, for United Fresh, said to me. "We’ve covered a lot of content that has motivated attendees to get back to the office to start implementing new ideas and strategies that will advance their brand marketing initiatives.”

Whether your first day of BrandStorm was Wednesday’s tour of Viansa Sonoma or Thursday’s opening keynote session with Tamsen Webster, the event kicked off with a bang.

“This year’s tour on Wednesday was exceptional," Mary continued. "Hosted at the picturesque Viansa Sonoma vineyard by brothers Jon and Chris Sebastiani, attendees learned about the many brands Jon and his company, Sonoma Brands, have created, invested in, and driven to market on impressive time tables with success.”

Church Brothers Farms’ Vice President of Marketing & Product Development Kori Tuggle had the pleasure of attending both the tour and the keynote.

Kori Tuggle, Vice President of Marketing and Product Development, Church Brothers Farms“I attended the tour, which was fantastic. It was great to see what’s happening with branding outside of produce. As for Tamsen Webster, she was fantastic, too!” Kori shared with me. “With each BrandStorm, we learn more. It’s nice to see this tradition grow for our marketing community.”

Following the keynote session, this year’s attendees—which included over 270 industry marketers—dispersed to take notes during some hard-hitting breakout sessions. Ed Hoffman, Padilla Food and Beverage Practice’s Senior Vice President, introduced foodservice as the next produce marketing frontier and challenged the marketers in attendance to remember that while produce continues to top menu trends, there is always work to be done and consumer preferences to keep in mind to maintain its place. Jennifer Tillman, Insight Specialist with Sonoco, then walked attendees through packaging faux pas as a means of emphasizing the best ways to grab shoppers’ attention in a split second. Valda Coryat teamed up with Weber Shandwick’s Chief Food and Nutrition Strategist Janet Helm to highlight key strategies produce marketing can utilize to stand out in an ever-growing crowd, emphasizing values, culture, and emotional connection as ways to wield brands’ unique stories.

Julianna St. Geme, Associate Marketing Manager, Mission Produce“Produce marketing is a challenging, unique, and exciting sector within our industry and BrandStorm provides attendees the opportunity to collaborate and engage in a way not possible at any other industry event!” Julianna St. Geme, Associate Marketing Manager for Mission Produce, told me after a day of breakout sessions.

Breakout X-Change Sessions at the 2019 BrandStorm™ Conference were led by DMA’s MacKenzie Wortham, T&G Global’s Brock Nemecek, Moxxy Marketing’s Karen Nardozza, Mann Packing’s Kim St George, Duda Farm Fresh Foods’ Elena Hernandez, and others

While the breakout sessions left me dizzy with knowledge—I seriously condensed all that I learned in that last paragraph, believe it or not!—it was the X-Change Sessions that I think were where the money was, so to speak. The X-Change Sessions opened the floor up to attendees to ask questions and engage in dialogue with each other, proving that while produce is only as strong as its weakest link, the community our industry has in place doesn’t allow weak links to remain that way for long. The sessions were led by DMA’s MacKenzie Wortham, T&G Global’s Brock Nemecek, Moxxy Marketing’s Karen Nardozza, Mann Packing’s Kim St George, Duda Farm Fresh Foods’ Elena Hernandez, and more!

MacKenzie Wortham, Account Director, DMA Solutions“I think the energy level at this year’s conference has really stood out to me as something special,” MacKenzie Wortham, Account Director for DMA Solutions, shared with me. “United has done a great job creating an atmosphere where we feel encouraged and comfortable to interact with each other to gain ideas and inspiration. It’s a great setting to relax and get to know our fellow produce marketers with fewer distractions that we may feel at a larger trade show event.”

The last day of the event concluded with a few experts, like Pure Flavor’s Chief Marketing Officer Chris Veillon outlining the recipe for a successful marketing campaign and Avocados From Mexico’s President Alvaro Luque detailing how to get in front of the world during one of the biggest events of the year: the Super Bowl.

For more in conference and expo updates, stay tuned to AndNowUKnow.

BrandStorm™

Fri. February 22nd, 2019 - by Robert Schaulis

SELAH, WA - Rainier Fruit Company has paired with hungry pear shoppers and some of the nations most beloved retailers—including Harris Teeter, Wegmans, and Lunds & Byerlys—to make a big difference in local communities; in partnership with these retailers, the fruit company recently donated more than 20,000 pairs of socks to five charitable organizations.

Mark Zirkle, President, Rainier Fruit“As growers, our first priority is to grow and sell high quality fruit. Our success affords us the opportunity to make a difference in a variety of platforms that include health and wellness, as well as community giving,” said Mark Zirkle, CEO of Rainier Fruit, in a press release. “It’s thanks to the work of our dedicated team members that ideas like Pears for Pairs take on a life of their own. In this case it allowed us to shine a light on the growing problem of homelessness and at risk populations and we look forward to growing this program and other cause marketing ideas that support our retail partners and allow them to give back in their local communities.”

Participating retailers were able to select the local charity of their choice and direct donations to where they were needed most

According to that press release, the company’s donations were the culmination of the seasonal cause marketing program Pears for Pairs—a program providing in-store marketing to retailers with a portion of the proceeds of all Rainier Fruit pear sales being donated to the Hanes Charity Sock Drive.

Participating retailers were able to select the local charity of their choice and direct donations to where they were needed most. Rainier Fruit representatives joined retail representatives and local media at charity locations during the weeks beginning weeks of January 28th and February 4th. Rainier Fruit and its retail partners made individual donations of 2500 to 5000 pairs of socks per each of the following location:

  • The Men’s Shelter of Charlotte, NC
  • The Salvation Army of Winston-Salem, NC
  • St. Stephens Human Service of Minneapolis, MN
  • Victims Resource Center of Wilkes Barre, PA
  • Schulykill Women in Crisis of Pottsville, PA

“As a family company, we’re committed to making a difference in the communities we serve, and always appreciate an opportunity to partner with like-minded companies, like Rainier Fruit, to make a bigger impact,” said Linda Lovejoy, Wegmans’ Community Relations Manager. “The Pears for Pairs program is a great example of how communities thrive when we all work together.”

Rainier Fruit recently donated more than 20,000 pairs of socks to five charitable organizations

In addition to the donation of socks, participating local charities were also able to share more information on their programs and services with local TV and print media. And Rainier Fruit noted, the donations came at a critical time, with the polar vortex delivering frigid temperatures throughout the U.S. and putting additional stress on the resources of charities that support the homeless and at risk populations—a group of more than 3.5 million individuals.

Danna Robinson, Communication Manager, Harris Teeter“The grocery business centers around food—not just feeding people, but also feeding neighborhoods which nourish vibrant communities,” Danna Robinson, Communications Manager at Harris Teeter, remarked. “Harris Teeter is grateful for generous partners like Rainier Fruit that allow us to make a difference through contributions to local organizations which provide help where help is needed.”

In addition to donating 20,000 pairs of socks, the Pears for Pairs program saw participating retailers drive high double-digit increases in year over year volume sales.

For more fresh-focused news, keep reading AndNowUKnow.

Rainier Fruit Company

Fri. February 22nd, 2019 - by Jessica Donnel

JACKSONVILLE, FL - Just shy of a year after announcing Chapter 11 bankruptcy, Southeastern Grocers will close an additional 22 stores over the next month, the company shared. In total, the retailer said it will close 7 Winn-Dixie, 13 Bi-Lo, and 2 Harveys locations on or before March 25, according to a report by the Post and Courier.

Joe Caldwell, Corporate Communications Manager, Southeastern Grocers“We realize that the closure of an underperforming store in your community can be challenging,” said Joe Caldwell, Senior Manager, Corporate Communications and Sports Partnerships, in a statement to multiple outlets. “We do not take these decisions lightly and only make this tough choice after careful consideration of its impact on our associates and our customers has been made.”

In March of 2018, Southeastern Grocers announced it was declaring bankruptcy and closing 94 stores across South Carolina, Alabama, Georgia, North Carolina, Mississippi, Louisiana, and Florida in the process. At the time, President and CEO Anthony Hucker said the move was in efforts to “...put our company in the best position to succeed in the extremely competitive retail market in which we do business.”

Southeastern Grocers will close an additional 22 stores over the next month after declaring bankruptcy last year

And that competitive environment still hasn’t slowed, despite Southeastern Grocers’ best efforts to remodel existing locations and open new stores catered to specific local demographics. Publix, Sprouts, Lucky’s, and more have all made efforts to expand in areas where Southeastern Grocers has strongholds.

AndNowUKnow will continue to follow the ups and downs of retail as it affects fresh produce, so stay tuned for the latest.

Southeastern Grocers

Fri. February 22nd, 2019 - by Anne Allen

BRAMPTON, ON - Loblaw reported its 2018 fourth quarter results Thursday, as well as its 2018 Annual Report. Although its overall same store-sales left a little to be desired, it noted that a shifting pricing strategy for its non-food merchandise kept fourth quarter gains from rising too high.

According to a report from The Globe and Mail, the strategy, known as everyday-low pricing, successfully improved the retailer’s profit margins and drew in loyal customers. This strategy also had the benefit of weeding out those non-profitable customers who were only purchasing discounted items, President Sarah Davis said in a conference call to analysts. She also explained that general merchandise was excluded and only food was taken into account, same-store sales grew 1.8 percent.

Sarah Davis, President, Loblaw Companies Limited“Q4 brought a fitting close to 2018, a year in which we set thoughtful but ambitious financial targets and then followed through on them,” Davis continued. “We saw strength in the underlying food and drug results, delivered through strong sales, core growth margin expansion based on data-driven margin decisions, and SG&A disciplines with new process and efficiency wins. In turn, we intensified investments in the right strategic areas.”

Loblaw reported its 2018 fourth quarter results Thursday, as well as its 2018 Annual Report

Highlights from the quarterly report include:

  • Revenue was CDN$11.21billion (US$8.52 billion), an increase of CND$226 million (US$172 million), or 2.1%, compared to the fourth quarter of 2017
  • Retail segment sales were CDN$10.98 billion (US$8.33 billion), an increase of CDN$181 million (US$137 million), or 1.7%, compared to the fourth quarter of 2017
  • Food retail (Loblaw) same-store sales growth was 0.8%
  • Operating income was CDN$445 million (US$338 million), an increase of CDN$388 million (US$295 million), or 680.7%, compared to the fourth quarter of 2017

Galen G. Weston, Executive Chairman, Loblaw Companies Limited“We are pleased to deliver strong operational performance again this quarter, achieving our full year financial targets in a challenging year,” stated Galen G. Weston, Executive Chairman, in a press release. “Our strategy has momentum, and we are accelerating our investments to deliver customer and shareholder value over the long-term.”

For the entirety of Loblaw’s financial report, click here.

Loblaw Companies Limited 

Thu. February 21st, 2019 - by Melissa De Leon Chavez

NEW ROCHELLE, NY - All good things must come to an end, but luckily for us in produce, there’s always another season right around the corner. With a successful Moroccan clementine season behind it, LGS Specialty Sales is now predicting a robust W. Murcotts season up ahead. LGS is currently expecting a steady supply of W. Murcotts through the end of April.

Luke Sears, President & Founder, LGS Specialty Sales“For nearly 30 years, LGS has sought the best growing regions that meet a rigorous set of standards to provide the best fruits to the U.S year-round,” said Luke Sears, President and Founder. “The fruit we import from Morocco, along with other countries, meets all ‘Darling specs’ for the highest quality in color, flavor, and overall crop health. The W. Murcott originated in Morocco and is also referred to as a Nadorcott.”

Born from Morocco’s dry summer and wet winter climate, Murcotts have a bright color, and rich, sweet flavor, according to a press release. Sears noted that the addition of the W. Murcott season allows LGS to offer shoppers enough supply to meet a growing demand of easy-peel citrus.

“It has been a smooth transition from our early winter Moroccan clementine crop as the Murcotts are anticipated to produce 20% more volume this year,” added Sears.

The fruit LGS imports from Morocco, along with other countries, meets all ‘Darling specs’ for the highest quality in color, flavor, and overall crop health

LGS inspectors monitor the crop throughout the season to make sure it meets the company’s Darling brand standards and maintain quality control. The company said its advisors are currently making the rounds to its off-season citrus farms and observing and advising on growing practices that improve product taste and yield.

Moroccan W. Murcotts are available in 2 lb, 3 lb, and 5 lb bags or 5 lb boxes and can be ordered by retailers now! Make sure to hop on your chance to offer this beauties before the season wraps up in the end of April.

LGS Specialty Sales

Thu. February 21st, 2019 - by Jordan Okumura-Wright

WESTLAKE VILLAGE, CA - Dole is celebrating female superheroes who wage their battles close to home in a move that would make Carol Danvers—Captain Marvel—proud. Its ‘Powering the Hero Within’ is a 10-week empowered-living alliance between Dole and Marvel’s Captain Marvel. Taking its cue from Danvers, Dole is showcasing influential women in food, health, and wellness, as well as female-focused non-profit groups that are working toward a healthier, more heroic world.

Dole will have Captain Marvel-inspired DOLE banana stickers featuring Captain Marvel, Nick Fury, Mar-Vell, Talos, and Goose the Cat

According to a press release, Dole is inspired by these health-related female superheroes: Abigail Adams, the first American First Lady to farm; Christine Moseley, Founder and CEO of Full Harvest; Peggy Shriver, Chief Development Officer of Rise Against Hunger; Johanna Sylvester and Jessi Greenlee, Executive Director and Director of Operations of Movement Foundation; and Elizabeth Kunz, CEO of Girls on the Run International.

Lisa Overman, Director of Marketing, Dole“We’re applauding the women everywhere who use their powers, whether supernatural or every day, to fight for a healthier and more equitable planet,” stated Lisa Overman, Dole’s Director of Marketing. “At the top of this list are all the female farmers, chefs, doctors, nurses, dietitians, scientists, engineers, philanthropists, and others who have sacrificed over the years to give us a more fulfilling, nutritious life.”

To help superheroes at all ages and stages in life boost their iron levels, Marcus recommends Dole’s Wake Up Oats, an iron-rich cereal topped with Vitamin C-rich berries

The program launches February 25 and will feature blogger and influencer partnerships alongside special recipes and original content created by Dole’s registered dietitians (RDs) to address universal female health and wellness needs. According to a press release, Captain Marvel character images will appear on tens of millions of DOLE® bananas and pineapples in U.S. and Canadian supermarkets. Dole will also have Captain Marvel-inspired DOLE banana stickers and DOLE Pineapple hang tags featuring Captain Marvel, Nick Fury, Mar-Vell, Talos, and Goose the Cat.

Melanie Marcus, MA, RD, Nutrition & Health Communications Manager, Dole“In honor of both Captain Marvel and March’s designation as Women’s History Month, Dole salutes these past and present champions of nutrition, health, and wellness whose accomplishments allow us to do the work we do today,” said Melanie Marcus, MA, RD, Dole’s Nutrition and Health Communications Manager.

Superheroes in training will be directed to nine Dole fruit and vegetable recipes selected by Marcus for specific nutrient and health benefits important to women. These include Dole’s Coconut Acai Bowl, packed with 10 grams of protein and 12 grams of fiber to break the overnight fast; the antioxidant-rich Berried Treasure Yogurt Cups, which can be prepared in advance to keep blood sugar levels steady throughout the day; Lemon Ginger Spring Vegetable Stir Fry as part of a fiber-rich, heart-healthy diet; and the Power Punch Smoothie, created by Dole specifically for Marvel as a satisfying, nutritious way to support bone health.

Dole's ‘Powering the Hero Within’ is a 10-week empowered-living alliance with Marvel’s Captain Marvel featuring character imagery on hang tags on pineapples

To help superheroes at all ages and stages in life boost their iron levels, Marcus recommends Dole’s Wake Up Oats, an iron-rich cereal topped with vitamin C-rich berries, and Sweet Apple Shaved Brussels Sprouts and Lentils, which capitalizes on the iron-absorption powers of lentils and green vegetables. Citing a study published in the American Psychological Association that found that women who ate five to seven servings of fruits and vegetables a day had a 23% lower risk of stress, she also pointed to Dole’s popular Fruit Salad Smoothie, delivering close to two full servings of seven fruits and vegetables, and the veggie-packed Veggie Lasagna and Spicy Sweet Potato and Banana Chili in Tortilla Bowls.

For the latest in superhero-worthy produce news, keep reading us here at AndNowUKnow.

Dole

Thu. February 21st, 2019 - by Maggie Mead

LAKELAND, FL - Publix has made a move toward retail supremacy, revealing three new cities as locations for its new format, GreenWise Markets. The locations will be in Odessa, FL; Nocatee (Ponte Vedra Beach), FL; and Lexington, SC.

Kevin Murphy, President, Publix“We’re creating a community gathering place where high-quality natural and organic products are the center of what we offer,” said President Kevin Murphy in a press release. “And we’re helping our customers support their healthy lifestyle with convenient in-house prepared meals and grab and go options made from organic and antibiotic-free ingredients.”

A specialty, natural, and organic store, GreenWise Market offers shoppers fresh products and a unique experience. The store features a beverage bar including kombucha, locally-roasted coffee, wine, local beer, and smoothies. The store will also offer local products, indulgent gourmet treats, body care, and bulk items. Customers can receive personalized offers by signing up for the GreenWise Market REWARDS program.

Publix revealed three new cities as locations for its new format, GreenWise Markets

Publix is betting big on its GreenWise Market, as several more locations are in operation or planned to open. The first GreenWise Market was opened in October, 2018 in Tallahassee, FL. The company has announced additional store locations in Mount Pleasant, SC; Lakeland, FL; Boca Raton, FL; Marietta, GA; Mountain Brook, AL; and Ft. Lauderdale, FL. The Mount Pleasant and Mountain Brook stores are set to open this summer, while the Lakeland and Boca Raton locations are expected to open later in 2019. Still, the company continues to search for additional GreenWise Market locations throughout its operating area.

Will the company’s rapid GreenWise Market expansion pay off? Keep reading AndNowUKnow for more updates.

Publix

Thu. February 21st, 2019 - by Anne Allen

WASHINGTON, DC - According to sources familiar with current negotiations, China and the United States are working to come to an agreement to end the seven-month trade war, Reuters reported. After the two countries have retaliated by slapping tariffs on what has become billions of dollars of goods, global economic growth has slowed, skewing supply chains and disrupting manufacturing, leaving many hoping for an end to the tariff dispute.

China and the United States are working to come to an agreement to end the seven-month trade war

Chinese and American officials met last week in Beijing to begin discussions; as the process became even more of a trade negotiation, they agreed to reconvene in Washington, DC, today and Friday. Sources reported that, although they disagree with core demands made by President Donald Trump’s administration for structural changes to China’s economy, the general tone of the talks is one of reconciliation. Both sides are pushing for an agreement by March 1, the date that marks the end of a 90-day truce President Trump and Chinese President Xi Jinping agreed to when they met in Argentina at the end of 2018.

Two sources familiar with the talks told Reuters that negotiators are drawing up six memorandums on structural issues: forced technology transfer and cyber theft, intellectual property rights, services, currency, agriculture, and non-tariff barriers to trade.

Although one source exercised caution and stated that the talks could come to nothing, others were optimistic. Several Chinese government sources relayed to Reuters that the two countries have essentially reached a consensus on alleviating trade imbalances.

AndNowUKnow will keep you updated on the latest in trade negotiations.

Wed. February 20th, 2019 - by Jordan Okumura-Wright

HOUSTON, TX - Nothing ventured, nothing gained. I feel as if this notion could be widely applied to many in an industry like ours, and now more than ever as the changing tides require our leaders to strive even harder and more passionately for excellence. When I speak of Sysco’s Julie Olivarria, this sentiment comes to mind as she assumes the role of Vice President of Produce for Sysco, bringing more than 25 years of produce industry expertise under her belt.

With Rich Dachman retiring from the role this summer, Julie is looking to this next evolution of Sysco and the role she will play on an exciting road ahead.

Julie Olivarria, Incoming Vice President of Produce, Sysco“I’ve been entrusted to lead the Sysco produce team across the business and am extremely excited for the incredible opportunity,” Julie shares with me. “I am responsible for continued growth in the category and to maintain our position as the industry leader. Under Rich’s leadership, we changed the way we procure and bring product to market. I feel a tremendous responsibility to carry on his legacy and continue to grow our business into the future.”

Julie started her produce career with Fresh Choice more than 26 years ago in an entry level position that inspired her to work her way into sales. In 1999, she was recruited by Sysco to be a produce buyer and, since then, has held several roles with Sysco in the produce procurement office, including the last five years as Senior Director, overseeing the accounting and procurement teams.

Julie Olivarria (second from the left) and Rich Dachman (right) presenting Church Brothers Farms with the 2017 Sysco Gold Produce Supplier Award

Over the last five years, Rich Dachman has accelerated Julie’s leadership growth and prepared her for her new role as Vice President of Produce with his continued guidance and mentorship.

Rich Dachman, Vice President of Produce, Sysco“A wise man once told me that your legacy is defined after you leave; in my case, it could not be in better hands than with Julie,” Rich warmly tells me. “She has such a great reputation for integrity and perfectly walking the fine line of being a highly-effective, assertive leader, while simultaneously treating people fairly and with respect. Additionally, her deep relationships with our suppliers are a great asset. I have no doubt she will take Sysco’s produce team and FreshPoint to the next level.”

And Julie’s passion for the industry can truly be seen in her approach to the industry and her drive to succeed.

“When I started in 1999 as a produce buyer, I had a hunger for knowledge and a passion to learn all that I could about the business. I sought out every opportunity to learn and grow,” Julie says. “I built relationships and made connections across the country, and when an opportunity presented itself for career development, I was ready for it. The industry has changed dramatically from 20 years ago. There used to be very few roles in produce—you were in sales or you supported sales. Today the opportunities are countless. I’ve seen the industry evolve and roles expand, for both men and women.”

With Rich Dachman retiring from the role this summer, Julie is looking to this next evolution of Sysco in her new role as Vice President

While Julie officially assumes the role on March 1st, she has already begun taking on the responsibilities and trying to absorb all she can from Rich during this transition period.

“I am blessed that my home office will remain in Salinas, California,” Julie shares, “but as Sysco is a global company, I have the opportunity to impact the industry in unlimited geographies.”

Please join me in congratulating Julie on her exciting promotion to Vice President of Produce for Sysco! Sure, when one door closes another opens—but for Julie, I feel like she only dreams in open doors.

Sysco

Wed. February 20th, 2019 - by Robert Schaulis

LONDON and LEEDS, U.K. - After Walmart announced the sale of its Asda banner and stores to Sainsbury’s in April of last year, the U.K.’s Competition and Markets Authority (CMA) has issued the findings of its Phase 2 investigation—noting that the deal could “could lead to a worse experience for in-store and online shoppers across the UK” and outlining ways in which the U.K. authority could potentially scuttle or enervate the deal on anti-trust grounds.

The deal, originally valued at roughly $10.1 billion, is now being reported as “a proposed…$17 billion…mega-merger.”

Stuart McIntosh, CMA Panel Inquiry Chair, United Kingdom“These are [two] of the biggest supermarkets in the U.K., with millions of people purchasing their products and services every day,” noted Stuart McIntosh, Chair of the CMA’s independent inquiry group, in a press release. “We have provisionally found that, should the two merge, shoppers could face higher prices, reduced quality and choice, and a poorer overall shopping experience across the U.K. We also have concerns that prices could rise at a large number of their petrol stations.”

Sainsbury’s and Asda released a joint statement disputing the CMA’s findings.

“These findings fundamentally misunderstand how people shop in the U.K. today and the intensity of competition in the grocery market. The CMA has moved the goalposts, and its analysis is inconsistent with comparable cases,” said an unnamed spokesperson, in the joint statement. “Combining Sainsbury’s and Asda would create significant cost savings, which would allow us to lower prices. Despite the savings being independently reviewed by two separate industry specialists, the CMA has chosen to discount them as benefits. We are surprised that the CMA would choose to reject the opportunity to put money directly into customers’ pockets, particularly at this time of economic uncertainty. We will be working to understand the rationale behind these findings and will continue to press our case in the coming weeks.”

 
 
 
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The CMA noted that it has set out a number of options for addressing its anticompetitive concerns, noting: “[t]hese include blocking the deal or requiring the merging companies to sell off a significant number of stores and other assets—potentially including one of the Sainsbury’s or Asda brands—to recreate the competitive rivalry lost through the merger.”

Details of the CMA’s investigation can be found on the Authority’s website.

For more as the situation develops, keep reading AndNowUKnow.

WalmartAsdaSainsbury's