AUSTIN, TX - Whole Foods may be switching up its strategy in 2019, ditching attempts to avoid that infamous “Whole Paycheck” stigma. In an internal email obtained by Yahoo Finance, CEO John Mackey said to staff that the company will halt growth of its discount-focused Whole Foods 365 markets. In the email, Mackey said the price gaps between 365’s and its traditional stores have become “less relevant” as the company has worked to lower its pricing overall.
"As we have been consistently lowering prices in our core Whole Foods Market stores over the past year, the price distinction between the two brands has become less relevant," Mackey wrote. "As the company continues to focus on lowering prices over time, we believe that the price gap will further diminish. As a result, we have decided that it's in the best long-term interest of the company to concentrate our efforts on growing the core Whole Foods Market brand moving forward."
365 by Whole Foods Market was launched in May 2016, and in the years since, the company has opened 12 locations under the banner. According to Mackey’s note, all 12 of these stores will remain open and integrate into the company’s current regional structure. He also confirmed that there will be no changes for 365 store Team Members. Global 365 Team Members will be placed within new roles at the company, Mackey added, and no Team Members are expected to be displaced. Jeff Turnas, President of 365 by Whole Foods Market, will soon be transitioned into a new role at the company.
Mackey’s revelation comes a little under a year and a half since Whole Foods was acquired by Amazon in a $13.7 billion deal that closed August 2017. Amazon has since made efforts to lower prices at Whole Foods, introducing more affordable fresh produce and discounts for members of Amazon Prime.
As Amazon continues to shore up its strategy for running Whole Foods Market, AndNowUKnow will keep providing our readers with the latest updates.
BOISE, ID - The third quarter of fiscal 2018 was not without its challenges, as retail giant Albertsons Companies, Inc., stated when it included the industry-wide romaine lettuce recall and the California fires among events that impacted its performance. Despite these points, President and CEO Jim Donald shared key successes for the chain.
"We continue to gain traction in our efforts to deliver a seamless shopping experience for our customers in both the four-wall and no-wall environment," said Donald. "The third quarter marked our strongest identical sales increase since the first quarter of fiscal 2016. Identical sales grew for the fourth consecutive quarter, and Adjusted EBITDA grew over 50% compared to the same quarter last year, as the business has rebounded from fiscal 2017. We achieved a record high sales penetration rate on our Own Brands products as we continue to delight our customers with our portfolio of award winning brands."
The details of the highlights named in the financial report included:
- Identical sales increased 1.9%
- Adjusted EBITDA increased over 50%
- An e-commerce sales growth of 73%
- Own Brands sales penetration increased to an all-time high of 25.2%
- Completed refinancing and $1 billion paydown of term loan facility
- Fiscal 2018 Adjusted EBITDA updated to be in the range of $2.65 billion to $2.7 billion
"We also successfully refinanced our term loan and asset-based loan facilities during the quarter as we secure long-term financing and deliver our balance sheet," Donald added.
Q3, which ended December 1, 2018, encompassed 12 tumultuous weeks in regard to some of California's worst wildfires and the CDC and FDA’s advisory having recommended all romaine lettuce be pulled from shelves. Even the recent earthquake in Alaska played a part in its financial results, Albertsons said.
Given the company's recent sale and leaseback of five distribution centers, not to mention two additional facility leasebacks earlier this year, the retailer also said that fiscal 2018 results are now expected to be impacted by approximately $17 million in incremental rent expense.
Collectively, Albertsons said it believes these items will negatively impact its fiscal 2018 Adjusted EBITDA margin by approximately 10 basis points and has updated its full fiscal 2018 identical sales guidance to be in the range of 0.8% to 1.0% and its Adjusted EBITDA guidance to be in the range of $2.65 billion to $2.7 billion.
In addition, the company expects the following results for the full year in fiscal 2018:
- Interest expense to be slightly down to relatively flat
- Its effective tax rate to be in the range of 29% to 30%, excluding one-time asset sales and discrete items
- To spend approximately $1.4 billion in capital expenditures
Gross profit margin increased to 27.8% during the third quarter of fiscal 2018 compared to 26.7% during the third quarter of fiscal 2017, which Albertsons said was primarily attributable to improved shrink expense as a percentage of sales, lower advertising costs, improved penetration in Own Brands, and the realization of the company's cost reduction initiatives. To read the full detailed report, click here.
NEW YORK - SnapDragon® fans throughout the United States can now reap the rewards of a new partnership between Crunch Time Apple Growers and Ibotta. Fans of the SnapDragon signature apple variety can now earn $1 off the purchase of their favorite crunchably sweet treat when they use the Ibotta app.
According to a Crunch Time Apple Growers press release, Ibotta is a smart new way to earn cash when you shop. SnapDragon fans can download the Ibotta app to get started. Consumers can then simply snap a pic of a receipt indicating a 2 lb SnapDragon bag purchase and upload it to receive cash back on the fan-favorite apple offering.
The offer is valid on all 2 lb bags of SnapDragon apples—a popular selection of the signature variety that boasts monster crunch. Perfect in a pie, a tart, slathered in peanut butter, or by themselves fresh, SnapDragon apples offer a variety of options, a unique spicy and sweet flavor with a hint of vanilla, and are, as Crunch Time says, “two-napkin juicy.”
Interested in taking part in this innovative consumer campaign? Check out Ibotta’s website for more details.
And stay tuned to AndNowUKnow for more on innovative marketing and forward thinking products in the fresh produce space.
IRVINE, CA - Hi! It’s me, the resident vegetarian on ANUK’s staff here to celebrate another produce takeover of meaty menus. Increasingly, fast food chains are getting in on the action of offering plant-based and veg-centric meat alternatives, and while I had thought Taco Bell would be one to stick to the meat-heavy status quo, the chain is belting out on its own as the latest to mess with the protein flow. Could this mean a meatless Crunchwrap Supreme® is in the cards? Taco Bell’s head seems to be in the game, but is its heart in the song? We’ll have to wait and see!
The fast food chain announced it will begin testing its first vegetarian menu at store locations later this year, which will include the debut of new items. According to a press release, Taco Bell currently has more than 8 million vegetarian combinations to choose from, including vine-ripened tomatoes, Hass avocados, and more, with the new menu items possibly upping that count to higher heights.
“We decided to scratch the idea of New Year’s resolutions and instead make New Year’s commitments,” said Julie Masino, President of North America at Taco Bell. “From simplifying our ingredients while improving food quality to creating more new jobs, to improving our recycling efforts, these are just some of our promises to keep doing even better and being even better, and they are promises that we know we will keep.”
In addition to vegetarian menu items, Taco Bell is also working to remove all artificial colors and flavors from its core menu and preservatives and other additives from its food where it can, taking its dedication to high quality ingredients a step further.
What team? Taco Bell! Get your head in the vegetarian game!
VALENCIA, CA - Kung Hei Fat Choy everyone! Chinese New Year is upon us (on February 5, to be exact) and that means red paper envelopes, lion dances, niangao, and of course, oranges! A symbol of good luck, oranges are traditionally eaten during New Year celebrations, and Sunkist is bringing that good luck to retailers and consumers alike. With more and more customers looking to add citrus to their celebrations, Sunkist has stepped in to meet that demand.
“We’ve expanded our organic citrus portfolio,” Christina Ward, Director of Communications, shared with me. “There has been an increase in acreage for organic varieties, such as Cara Caras, Blood oranges, and mandarins, lending to the increase in production of citrus in these categories. Looking at industry trends, organic citrus continues to see strong performance and is up 6 percent from the prior year; organic mandarins overall had three consecutive seasons of double-digit growth in the 2018 season, with 2 lb bags proving to be most popular. Organic Navel and lemon sales are also strong, and we are seeing an increase in demand for specialty varieties, like our organic Cara Cara navels.”
Availability isn’t the only thing on Sunkist’s mind, as the company has designed limited edition packaging that is sure to entice shoppers. This year’s special packaging is a 10-pound “Year of the Pig” gift carton of Navel oranges, and the secondary display bins can be used to promote any Sunkist variety, especially pomelos.
Consumers have a plethora of options when it comes to their New Year’s citrus, including organic Navels, conventional and Meyer lemons, Star Ruby grapefruit, Cara Cara Navel, Blood oranges, California mandarins, and Minneola tangelos, all of which are available now. Available in promotable volumes now through February are organic grapefruit and organic lemons, with organic oranges amply available through May.
“This is a ‘promotable crops’ kind of season; our volumes are up across all citrus categories and retailers have an opportunity to promote categories they haven’t been able to in the past,” continued Ward.
Shoppers will be delighted to bring good luck into their homes with Sunkist’s stellar citrus, and the company has retailers covered with their creative packaging and wide range of citrus varieties.
AndNowUKnow will keep you updated on all Year of the Pig developments.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has cited Farmers Best of NYC Inc., operating out of Brooklyn, N.Y., for failure to pay for produce.
According to a press release, the company failed to pay $610,685 to eleven sellers for produce which was purchased, received, and accepted in interstate commerce from February 2016 through October 2016. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, Farmers Best of NYC Inc. is prohibited from operating in the produce industry until December 18, 2020, and then only after they apply for and are issued a new PACA license by USDA.
The company’s principal, Eran Evenaim, may not be employed by or affiliated with any PACA licensee until December 18, 2019, and then only with the posting of a USDA approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. Those individuals, including sole proprietors, partners, members, managers, officers, directors or major stockholders may not be employed by or affiliated with any PACA licensee without USDA approval.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry.
In the past three years, USDA resolved approximately 3,350 PACA claims involving more than $63 million. PACA staff also assisted more than 8,000 callers with issues valued at approximately $156 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
MONTEREY, CA - Human resources and safety professionals within the agricultural industry will soon gather for the 39th Annual Agricultural Personnel Management Association (APMA) Forum in Monterey, CA. Held at the Monterey Plaza Hotel, January 23-25, 2019, the conference provides educational activities to agricultural companies so that they best understand labor and employment law, human resources, and safety. I had the chance to speak to the two keynote speakers, Dave Puglia, Executive Vice President of Western Growers, and Vic Smith, President and CEO of JV Smith Companies, to find out what this event means for the industry.
“I suppose every industry in every part of the country is challenged by recruitment, retention, and training demands, plus regulatory compliance, but employers in California and especially those in the agriculture industry navigate what must be the most complicated and burdensome regulatory regime in the United States,” Dave begins. “This conference brings together subject-matter experts across a wide range of these issues. It’s really valuable for ag employers, first for understanding those legal and regulatory issues, but also for those who want to go above and beyond as employers of choice.”
According to APMA, Dave was selected as a keynote speaker because he offers a legislative perspective about how different regulations in California and across the nation will affect the industry.
“I’m still processing the election outcomes and how those results might translate into policy affecting our industry,” he continues. “One dynamic to watch in the California Legislature is the degree to which the Democratic supermajority, now at three-fourths of both chambers, faces internal conflicts over issues of concern to the business community. And of course, the really big questions revolve around Gavin Newsom and his approach to agriculture issues. In Washington D.C., the Democratic takeover of the House of Representatives presents some interesting possibilities for a new immigration reform effort.”
Vic Smith was selected to speak about best practices for companies that wish to create and foster an enlightened and motivated workforce.
“First of all, I am honored to be asked to speak at this event. I will be focusing on being ‘the employer of choice.’ I believe we are at the point in our industry where Human Resources is becoming one of the most important components for any successful business,” Vic tells me. “Not that it hasn’t had significant impact in the past, but it will need to be transformational to keep up with future trends.”
APMA also believes in promoting networking, stating that it is one of the best resources for industry knowledge. For those attending, here’s what to expect:
Wednesday’s Opening Program:
- Comprehensive H-2A Program panel presentation
- Special guest workshop with Geni Whitehouse CPA, Countess of Communication
- Interactive activity exploring key topics to help professionals stay ahead of HR issues
Thursday will feature sessions that address emerging issues impacting the industry:
- Employment and Labor Law
- Strategic Management
- Health & Safety
- Human Resources
- Recognition of the 9th Graduating Class of the Human Resource Professional in Agriculture (HRPA) Certificate Program
Friday will feature a Labor and Employment Law Update, as well as:
- Networking lunches, reception and dinner, and popular vendor displays
Stay tuned here to get the latest in industry news!
LOS ANGELES, CA - While some of us experienced a 2018 that felt like it was born from the depths of hell (don’t ask), POM Wonderful had a year for the record books! The super premium juice (SPJ) provider had its best-ever sales year in 2018 and in celebration of that fact, are touting a laundry list of other accomplishments.
“Consumers are increasingly looking for healthier options, and POM Wonderful is proud to be the only legacy brand continuing to grow in the super premium juice category,” said Adam Cooper, Vice President, Marketing. “Not only was 2018 our best year ever in sales, but 9 in 10 consumers recognize our brand. POM Wonderful is the most exclusive super premium juice brand, meaning half of POM buyers only buy POM juice when they’re shopping the category.”
As we’ve previously reported, POM debuted two all-new campaigns in 2018. The company said it spent roughly 6 times more than its competitors combined on media, creating such memorable campaigns as the “Dolphin” digital campaign in the summer and “Worry Monsters” in October.
“We are also proud that POM’s 48 oz. 100% Pomegranate Juice is the highest selling item in the food channel under the super premium juice category,” Cooper continued. “This is in part due to our tireless marketing efforts to let people know that we’re THE Antioxidant Superpower, and we can help you get crazy healthy by drinking POM Wonderful.”
Here are a few other major achievements POM noted in its media release:
- 9 in 10 consumers recognize the POM Brand. POM Brand Awareness is at 87%.
- POM’s 48 fl oz 100% Pomegranate Juice has been the highest selling item in the in the food channel under the SPJ category (52 weeks ending 11/4/2018).
- POM is the most exclusive SPJ brand. 50% of buyers only buy POM in the set.
- POM is the only legacy brand contributing dollar growth to the category (6% of dollar sales growth added to SPJ category over 52 weeks ending 11/18/2018).
Congratulations to POM on its banner year—we’ll be watching out for even more throughout 2019!
YAKIMA, WA - To most of us stuck in the dreary cold of winter, fall seems ages away. But not for the fine folks at Superfresh Growers®! These proactive growers are already laying the groundwork for fall harvest. The growers manage crops by pruning each tree to ensure they get an even amount of sunlight (known as “farming the light”).
“We’re farmers of light, as light gives us the color and increases flavor on the apples,” said Chief Horticulturist Dave Gleason. “We’re always trying to balance the light. Each bud has the potential to become an apple, so it’s important that tree quality is the same from top to bottom.”
Winter-dormant trees are currently being examined in an effort to set a strong apple crop. Sometimes tree limbs break, or are not as strong, and trees naturally attempt to fill in the spaces. New shoots are put up, which closes off light access. To address this, the orchard teams practice strategic pruning techniques, evaluating tree structure, studying buds, and making adjustments to ensure a balance of light.
To guarantee premium fruit quality, it is essential that light distribution is even. This function allows the growers to put the apples where they want them on the tree. The clock never stops at Superfresh—for this company, farming is a year-round effort.
AndNowUKnow will continue to deliver harvest updates.
MCALLEN, TX - This week, as the government shutdown approached its fourth week running, President Donald Trump made a surprise visit to the Rio Grande corridor. The President and Congress have been unable to come to terms on a budget around the sticking point of $5.6 billion in funds for border security, and President Trump took to the border to visit the situation on the ground and bolster his case for a wall along the U.S.-Mexico border. But there may be another sticking point in the President’s plan; his border wall plan is tremendously unpopular with many residents of the Rio Grande Corridor.
“We know where our border is, and we have one. A wall is really not the effective way to protect our border,” said McAllen, Texas, Mayor Jim Darling, according to a Texas Standard report. “If you’re separating your property with a wall, there’s damages to that property to the south for sure…just the inconvenience of getting there…the federal government does not take that into consideration.”
Darling has been a vocal critic of the President’s proposed border wall. While Darling supports comprehensive immigration reform and notes that municipalities along the border bear much of the onus for a “broken” immigration system, he says that the border situation hasn’t reached the level of a “crisis,” and certainly not a “national emergency.”
The federal government is currently in the process of surveying land along the U.S.-Mexico border, prompting municipal leaders—and many South Texan landowners along the border—those potentially facing land seizure—to take issue.
“You could give me a trillion dollars and I wouldn’t take it,” Rio Grande corridor landowner Eloisa Cavazos told the Associated Press (AP). “It’s not about money.”
The Trump Administration has threatened to declare a national emergency—circumventing Congressional approval and appropriating unspecified funds to pay for a border wall running the length of the U.S.-Mexico border.
One of the more vocal critics of President Trump’s plans has been Republican Congressman Will Hurd, whose district—the 23rd Congressional— stretches 820 miles from El Paso to San Antonio.
“Building a 30-foot high concrete structure from sea to shining sea is the most expensive and least effective way to do border security,” Hurd told CNN this week.
Hurd isn’t alone in his opposition. In fact, CBS News has reported that “every congressperson along the southern border opposes border wall funding.”
AP noted that legal experts think, even in the case of a national emergency, President Trump’s plans will still be subject to the stipulations of eminent domain, “which requires the government to demonstrate a public use for the land and provide landowners with compensation.”
According to the Texas International Produce Association (TIPA), more than $6 billion in fruits and vegetables came through the Texas-Mexico corridor in 2017.
AndNowUKnow will continue to report on the situation as it develops.