CAMARILLO, CA - Houweling’s Group is putting the pedal to the metal to accelerate growth in 2019. The greenhouse grower is teaming up with sustainability investment firm Equilibrium to modernize its existing facilities in California and expand its production capacity at its Utah facility.
“We had been seeking a strategic equity partner for the past few years, recognizing the need for outside capital to react to growing customer demand for fresh, safe, and 365 day-a-year production,” said Kevin Doran, Houweling’s President and CEO. “By partnering with Equilibrium, who bring a deep understanding of the greenhouse and agriculture sectors, we expect to unlock the full potential of our company.”
In a press release, Doran outlined that thanks to Houweling’s partnership with Equilibrium, the company is able to provide further economic development for its neighboring communities. As a result, this will help the company expand its greenhouse’s locally-grown product mix that's available to Houweling’s customers.
“The waste heat and CO2 from the adjacent power plant is sufficient to support a greenhouse twice the size of what we have now” Doran said. “With Equilibrium, we can realize the economies of scale from a second 30-acre phase, planned to commence construction in 2019.”
Equilibrium’s Chairman Dave Chen added, “[Houweling’s] state-of-the-art greenhouse in Utah captures waste heat and CO2 from the neighboring power plant, reducing the amount of fossil fuels consumed compared to a traditional greenhouse operation, and recycling CO2 that would otherwise enter the atmosphere. This is exactly the kind of economic and sustainability impact we look for in our strategies.”
Chen noted that Equilibrium was first drawn to Houweling’s because of its sustainability innovations and efforts to create operational advantages and reduce environmental/climate action impact.
“We see a tremendous opportunity in the future of controlled environment agriculture and foods,” said Chen. “By partnering with top high-tech greenhouse operators, such as the Houweling’s Group, we plan to grow with the demand in the sector. We have spent the last few years getting to know the management team. We are impressed with the strength of their direct-to-retail business and brand they have built over the last 20 years in the United States.”
For more on the companies leading the sustainability charge in produce, keep reading AndNowUKnow.
BAKERSFIELD, CA - True story: when I was a kid, I learned that carrots were good for your eyesight, so I ate the things like crazy. Fast forward 20 years and I still have astigmatism, but also a fresh appreciation for carrots—this time based on taste rather than ocular promises. The growers at Grimmway Farms share my appreciation of the crunchy orange cones, making it their business to produce high-quality, delicious carrots. Vice President of Sales, Mike Anspach, shared an update on the company’s current crop of carrots.
“Carrot quality, size, and supply are excellent this season,” said Mike. “We saw some rain and colder temperatures in Kern County, but neither have affected crop volumes or harvest activity.”
At the moment, Grimmway Farms is harvesting carrots in Kern County, while getting ready to transition to its desert growing region come late February. The carrot market remains steady, but with a tighter than normal supply of jumbo carrots, a very popular item, prices are subsequently slightly higher than normal.
With the crop going strong despite the tumultuous weather and a steady carrot market, 2019 is shaping up to be a bang-up year for Grimmway Farms.
AndNowUKnow will continue to report on all things crop related.
WENATCHEE, WA - As the fresh produce industry keeps developing and it becomes increasingly more difficult for retailers to stand out from the crowd, it now takes a little more ingenuity and strategy to unlock the biggest profits in the game. One way CMI Orchards’ Vice President of Marketing George Harter suggests retailers can tap into those larger category sales is to offer consumers a “a fourth tier of selling potential.”
“Most retailers carry first, second, and third tier items, which are the conventional core varieties, organic core varieties, and conventional branded apples, respectively,” he explained. “The retailers that are really benefiting from large profits in their apple category recognize the value in adding a fourth tier of selling to drive interest and excitement by offering another vehicle for incremental sales: branded organic apples.”
According to Harter, CMI grows and markets seven of the top twelve selling branded apples in the United States. Ambrosia, Jazz™, Envy™, Kanzi®, KIKU®, Pacific Rose™, and Smitten® apples all showed strong performance in Nielsen’s reports on the last 52 weeks of sales data sourced through December 29, 2018.
“Of these rock star conventional branded apples, CMI has really set ourselves apart by investing in branded organics,” Harter continued. “We can deliver organic Ambrosia, KIKU, Kanzi, Envy, and Smitten, providing retailers with some great options for leveraging the power of higher-value apples on the shelf.”
Nielsen data shows organic Ambrosia is the number one selling branded organic apple, Harter said, performing 95 percent higher in sales dollars than the second ranked branded organic apple. Harter noted that, of the five top selling branded organic apples, CMI carries three: Ambrosia, Kanzi, and Jazz apples. Organic Ambrosia had stronger sales performance than the second and third top performers combined, he added.
CMI growes around a quarter of Washington State's entire organic apple crop, said Robb Myers, Director of Domestic Sales for CMI Orchards, who continued: “That’s more than 100 million pounds annually. We’ve reached significant volume where we are close to being able to supply customers year-round with organics, supplemented by import organic apples in the summer.”
With branded organics, Myers added, CMI provides retailers a way to further segregate the expanding organic category even further.
“Put it this way, you can essentially amplify your set price points considerably with each tier, resulting in more sales for your stores,” Myers said. “If you’re offering only three tiers in your apple category, you’re missing a huge opportunity to capture dollars with branded organics.”
For more from the produce industry’s foremost experts on merchandising and category management, keep reading AndNowUKnow!
LOS ANGELES, CA - With the Patriots going up against the Rams on Sunday and Maroon 5 as the halftime show, I can assure you that my only reason for Super Bowl gatherings this year is the food. Produce-wise, however, it is definitely a victorious time for avocados no matter what team you ship, and as Giumarra’s Regional Business Development Director, Gary Caloroso, recently shared with me, it’s just the beginning.
“January saw two consecutive record weeks in avocado volume. Overall, Mexican avocado volume projects as slightly higher now through the Spring compared to last year. California avocado volume will be lower this season and will be in higher demand as a result–particularly in the West,” Gary tells me, adding that quality overall is looking excellent and the quantity is prime for retail promotions.
Mother Nature, he adds, has not greatly affected avocado production over the past couple of weeks. If anything, he explains that the increased rain this winter in California helped growers with their groves this year.
When I ask about the bottom line, Gary shares, “Given the larger amount of volume available for the Big Game, market prices are currently lower compared to last year, but they will begin to increase as we move through the Spring.”
The nutritional benefits of avocados remain a major reason why consumer demand for avocados continues to increase, as well as how they can be implemented.
“Combined with great taste, versatility, and year-round availability, avocados have become a really exciting fruit for consumers,” he says. “Guacamole remains a major driver of consumption for the Big Game. Avocado’s incredible versatility has led to other great uses as well including sandwiches, tacos, burritos, salads, and of course, avocado toast.”
But what about when the clock runs out on the biggest game in football? The last touchdown of the season won’t necessarily be the last for avocados, that’s for sure.
“After the game ends on Sunday, Avocados From Mexico has a very aggressive promotional plan with supermarket and restaurant chains throughout the Spring. California will launch its programs as well. There will be lots of promotions to help boost consumer demand,” Gary assures.
2019 has only just begun! Stick around as AndNowUKnow continues to report the latest in all things fresh produce.
NEW YORK, NY - Lately, it seems that meal kit provider Blue Apron can’t catch a break. Earlier this year, the company fell into the pit of penny stocks and suspended its pilot program with Costco, so the heat is on to turn things around and raise profits. Its most recent attempt is the introduction of a new line of meal kits at a lower price as part of its new partnership with Walmart.
As part of its now-complete partnership with Costco, Blue Apron developed a new meal kit concept, Knick Knacks. The kits have enough ingredients for a meal for two and are designed to be paired with store bought proteins and produce. The kits also retail at a lower price. The new concept provides consumers with more flexibility and extends the kit's shelf life. Now, as part of the company's new partnership with Walmart, the meal kit will be available through Walmart’s Jet.com. The kits will cost $7.99, a bargain compared to its previous meal kits, ranging in price from $16.99 to $22.99, as reported by the New York Business Journal.
Walmart’s Jet.com focuses on delivering goods to urban customers, such as those in the New York City and Hoboken, New Jersey, areas. Although the new Knick Knack kits are only available through an e-commerce retailer, the company’s CEO, Brad Dickerson, claims that the kits could work in brick-and-mortar retail locations.
For Blue Apron, last year was fraught with competition from rivals like HelloFresh, Gobble, Home Chef, and Dinnerly. In the latest quarter, the company lost more customers after scaling back marketing. While spending cutbacks and layoffs have been plentiful, those strategies are an attempt to turn things around, minimize losses, and raise profits in 2019.
Will this new meal kit strategy help get Blue Apron back into the game? Keep reading AndNowUKnow to stay posted.
LAKELAND, FL - All good things must come to an end. After 38 years of service to Publix, Jeff Stephens, the company’s Vice President of Manufacturing, announced his decision to retire. His retirement will be effective May 1, 2019.
Stephens began his Publix career as a rail dock associate in 1980. He was then promoted to lab technician in the dairy plant in 1983, Quality Control Manager in 1988, General Manager of the dairy plant in 2000, and Director of Fresh Product Manufacturing in 2005. In 2010, he was promoted to the Director of Manufacturing Operations, and in 2013, he was promoted to his current position.
“Jeff’s philosophy is to leave things better than you found them,” stated CEO Todd Jones in a recent press release. “I’m thankful he has done just that. Whether through his dedication to his associates or the products he produces, Jeff has been a great example of what it means to be Publix.”
In his retirement, Stephens is looking forward to spending more time with his wife and their family. He also plans to remain involved in mission work.
Congratulations to Jeff from all of us here at AndNowUKnow on a brilliant career. We wish you all the best in your retirement!
UNITED STATES - For the people of the Midwest and New England, their winter wonderland has turned into a winter nightmare. A polar vortex has hit the regions bringing with it extreme cold temperatures as low as -77 degrees Fahrenheit, temperatures low enough to cause frostbite on exposed skin within a matter of minutes. With transportation a major issue, many cities are shutting down almost entirely.
A polar vortex is a large pocket of extremely cold air that sits over the polar region of the Northern Hemisphere during the winter season, and this one has been displaced by a powerful high pressure system originating in the Eastern or Western pacific, as reported by Accuweather. The result has been a massive cold snap, surpassing record low temperatures set as far back as the 1800s.
"An entire generation has gone by without experiencing this type of cold in the Chicago area," according to AccuWeather Senior Meteorologist Mike Doll.
As a result, many states have declared states of emergency, shutting down schools and businesses to protect residents from the biting cold. Between the thousands of flight cancellations, foul weather road preparation and snow removal costs, and even loss of life (there have been at least eleven reported weather-related deaths so far), the weather emergency could cost the U.S. upwards of $5 billion, by AccuWeather’s estimates.
The polar vortex is bad news for the ag and food industry too, as with the Super Bowl coming up, deliveries of staples like guacamole and beer will be delayed, according to David Schaper of Byline.
It’s not all doom and gloom, however, as experts say residents of the affected areas can look forward to milder weather once the polar vortex passes this weekend (hopefully).
"We can assure people that we will not get another cold wave this winter that is this severe," said AccuWeather Founder and CEO Joel N. Myers. "There will be more bouts of cold weather but nothing nearly this extreme."
AndNowUKnow will keep you updated on this devestating weather event.
RIO RICO, AZ - SunFed® is headed deeper into 2019 with new crops and new categories. The company has introduced Texas beets and will be kicking off its second Mexico onion season to usher in the month of February.
Beginning in early February, SunFed will be offering Red and Gold beets—with Candy Strip beets harvesting shortly afterward.
“We had beets in the ground before the 2019 Super Foods list came out,” said Gretchen K. Austin, Director of Marketing and Business Development, in a press release. “SunFed is always looking to expand our offerings and beets made perfect sense to us this year in Texas. The fact that beets made Super Food stardom is just kismet!”
SunFed will offer clipped and topped beets packed in a 25# poly bag, 50# bags, tote sacks, and 60” bins, suitable for both retail and processor needs, in early February.
SunFed also announced the impending beginning of onion season—with Mexican onions shipping out of south Texas in early February from the company’s Weslaco division.
“This is our second year with onions, and it looks to be a good year. Onion consumption is up and demand is strong,” Gretchen noted. “This is SunFed’s second year selling Texas onions. We will carry a sweet yellow 1015 onion and a red onion.”
Beginning this February, customers can look forward to SunFed yellow sweet onions in 50# net sacks followed a few weeks later with 50# white onions. And, with a hot onion market and good sizing—with traditional jumbo, large/medium, and medium grades available—SunFed encourages customers to book orders early.
SunFed’s Texas onion program will follow on the heels of the Mexico program, with a little overlap in April, the company noted. And healthy plants and well-maintained fields promise to provide a strong crop come spring.
AndNowUKnow will continue to keep you updated with more news from SunFed as the season progresses.
WENATCHEE, WA - We want apple data! When do we want it? Now! The latest from Stemilt Fruit Tracker Fast Facts’ video analysis of Nielsen scan data signals the apple category is bulking up, despite a slow start to sales in the new crop year and a national apple crop down from 2017. Stemilt’s analysis of December 2018 U.S. retail scan data shows average weekly dollars and pounds of apples sold were flat compared to December 2017. The average store sold approximately 1,685 pounds of apples per week in December 2018, which brought an average of $2,710 to the store each week. The category’s top apple variety, Gala, has rebounded from its 2017 performance, with volumes and dollars up 11 percent year-over-year.
“The fact that apple sales are flat during a shorter crop year is a sign of great demand for a popular fruit,” said Brianna Shales, Communications Manager. “Retailers should be encouraged about the performance of their apple category and its leading apple, Gala, in the first four months of this new crop year.”
According to a company press release, Gala made up approximately one quarter of apple sales in December 2018 with an average retail price of $1.29 per pound. Honeycrisp led the top 5 apple varieties in average retail pricing with an average price per pound of $2.28. Honeycrisp represented 17.4 percent of apple category sales and 24.6 percent of the dollars. Dollar sales of Honeycrip were up 4 percent in December 2018 compared to December 2017. Granny Smith, Fuji, and Red Delicious rounded out the top five apple varieties in December 2018.
“Fuji was down in volume and dollars year-over-year in December and is the apple with the most promotion opportunity as we head into the spring months,” stated Shales. “At Stemilt, we have great supplies of high-color and high-quality Aztec Fuji’s coming to align with apple promotions that feature Fuji.”
According to the data, the 2017 apple crop favored bagged apples due to smaller apple sizes. Data from December 2018 shows that apple bulk sales rebounded with larger fruit sizes. Bulk apples generated 58.3 percent of apple pounds sold and 67.4 percent of the dollars.
Stemilt has merchandising vehicles for both bulk and bagged apples to support spring apple promotions at retail. The company introduced a set of EZ pallet displays in October to help retailers promote both conventional and organic apples, as well as its award-winning Lil Snappers® brand for kid-sized fruit in pouch bags.
“We know that most consumers are enjoying apples as a snack. Our EZ pallets were made to reinforce that behavior and encourage shoppers to purchase apples for snacks,” said Shales. “The EZ pallet easily moves through a retailer’s distribution system, sets up in the store in a minute, and will grab shopper’s attention through its large footprint and high graphics.”
For the latest in fresh produce, keep reading us here at AndNowUKnow.
THE BEYHIVE - My time has come. After spending the last seven years of my life surviving solely on a plant-based diet, I now have the chance to be recognized by music’s Lord and Savior Beyoncé as the best vegetarian around. Dreams really do come true!
The Lemonade singer is back on her vegan ish, taking to social media to spread the good news and convert the Beyhive to veganism, too. She made the pledge to participate in Meatless Mondays and enjoy a plant-based breakfast every day of the week, proving she really is our industry’s biggest ally.
In addition to her pledge, Beyoncé posted a photoset on Instagram promoting the Greenprint Project, the website for diet book The Greenprint: Plant-Based Diet, Best Body, Better World, which features an intro written by Beyoncé and her husband, Jay-Z. We stan a literature queen.
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But, not only did she promote her new veg-friendly diet and book, she also incentivized the challenge by adding the reward of life-long tickets to her own shows.
“What is your Greenprint? Click the link in my bio for a chance to win tickets to any JAY and/or my shows for life. #greenprintproject,” Beyoncé wrote under her Instagram post.
Hang one night with ‘Yoncé and she’ll make you plant-based. Have you ever seen a crowd going vegan? Not yet, but I’m sure Queen B’s next stadium tour will be a total produce extravaganza, and I'll be there for it, winner of her produce challenge or nah.
To stay up-to-date on all Beyoncé, fruit, and veg news, keep following AndNowUKnow.