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WATSONVILLE, CA - Driscoll’s has put into effect a planned leadership restructuring announced at the end of last week, including J. Miles Reiter reassuming the position of Chief Executive Officer.
As a fourth generation grower and the grandson of one of Driscoll’s founders, Reiter will continue to serve as Driscoll’s Chairman, a role he has held for more than 30 years, according to a press release.
“Over the past several decades, Driscoll’s has maintained strong success and growth. Through the tireless pursuit of fulfilling our company mission, we now delight consumers with fresh berries that bear the Driscoll’s brand name in more than 60 countries,” Reiter said.
The company said that Kevin Murphy, who was named CEO in 2015 after serving as President and Chief Operating Officer, will leave this position by the end of the year.
“Kevin has played a key role in leading this growth, and we’re grateful for his leadership and many contributions,” Reiter continued. “Reshaping our leadership structure allows us to adapt to our ever-changing marketplace as well as streamline our close work with growers and customers to meet the high expectations that consumers globally have of our berries and brand.”
In addition to that chance to adapt, the company expects this restructuring to support its mission to delight berry consumers through alignment of its customers and network of independent growers. Family owned-and-operated for more than 100 years, Driscoll’s concluded it is positioned for future global brand expansion with this organizational announcement.
Follow AndNowUKnow for all key leadership changes in the produce industry.
CHINA - Two of America’s top grocers are duking it out in an away match of the century, as both make grocery moves in China. Kroger laid claim to the Chinese market earlier this year when it teamed up with major China-based retailer Alibaba. But that’s not to say Walmart doesn’t have its own global A-team, which includes the likes of JD.com and Tencent. Last week, however, Walmart took things up a notch in the online grocery space and announced a new home grocery delivery option in China, according to the Cincinnati Business Courier.
Unofficially, Walmart is testing Walmart To Go out of one of its stores in Shenzhen. The retail titan is touting purchased goods will be delivered in as little as an hour. The service is offered via Tencent’s WeChat mobile messaging app, but, according to a report by TechCrunch, has not been officially announced because Walmart is using this “launch” as a test to collect consumer feedback.
The Cincinnati Business Courier points out that this retail battle mirrors one the two are having stateside as well, which involves more than just Kroger and Walmart. As an industry reporter, I have to say, it seems like each week brings a new retailer signing on to offer faster grocery delivery services than the one before—a product of doing grocery in the Amazon Era, I'm sure.
How will Kroger and Walmart’s latest grocery battle bode for the retail landscape in both the States and overseas? AndNowUKnow will continue to keep you logged in on the latest grocery happenings.
CHILE - The Association of Agricultural Producers and Exporters of the Copiapó Valley (APECO) officially kicked off the 2018-19 table grape season with an inaugural ceremony on November 27th. Regional authorities—the National Society of Agriculture (SNA), the Foundation for Fruit Development (FDF), and the Association of Fruit Exporters of Chile (ASOEX)—joined the event to celebrate the first harvests of one of Chile’s flagship fruits.
“The markets have spoken, and we have listened,” stated the President of APECO, Lina Arrieta, in a press release. “Our important export markets, like North America, are not interested in older varieties like Flames and Red Globes. Our growers are working hard to meet the needs of our export markets, so you’ll see increasing volumes of new varieties.”
Within that press release, she also expressed optimism for the coming season and a dedication to providing export markets with the varieties they demand.
The Chilean Fresh Fruit Association works hand-in-hand with importers, wholesalers, and retailers to drive sales of Chilean grapes and other fruits. Grape volume from the Copiapó region is projected to exceed 10 million boxes this season, with harvesting starting on November 20th and shipments expected to depart for the United States between December 5th and 7th. The largest volumes from the region will be harvested from December through mid-January, with late varieties finishing by the first week in March. North America, the press release noted, continues to be Chile’s largest market for grapes, receiving roughly 45% of Chilean grape volume (39 million boxes) during the 2017/18 season.
“With two merchandisers in the U.S. and one in Canada, we are able to support the trade with the marketing they need to sell more Chilean fruit,” said Karen Brux, Managing Director of the Chilean Fresh Fruit Association. “One retailer might love digital coupons, while another prefers produce manager sales contests or social media contests for their customers. We develop the right mix to elevate Chilean fruit sales.”
For the latest in fresh produce news, keep reading us at AndNowUKnow.
NORTH AMERICA - A significant step for the U.S.-Mexico-Canada Agreement (USMCA) was made last Friday when all three administrations showed their support in signing for it. Industry voices from all three countries showed encouragement for what this signified as the agreement moves forward to Congress for approval.
“This brings certainty back to the marketplace, which is good news for the industry—whether you’re a retailer purchasing from Mexico or a supplier wondering if you can supply one country or the other. It’s not finished, as it still has to be approved by Congress, but it has been agreed upon by all three administrations,” Richard Owen, Vice President of Global Membership & Engagement for the Produce Marketing Association (PMA), shared with me. “NAFTA is 25 years old. It was really the first major trade agreement put in place and a lot has taken place since then, technology and space flow in general. So, this updates reciprocity standards and puts technology into play that wasn’t even on the table 25 years ago.”
The signings took place in Buenos Aires, Argentina. The Canadian Produce Marketing Association (CPMA) noted in a press release it has been actively involved in the negotiations of the USMCA and has worked closely with negotiators since formal negotiations were launched in summer 2017.
“The North American fresh fruit and vegetable industry is a highly integrated and complex system that works to provide Canadians with affordable fresh produce all year round. The USMCA will provide long-term certainty for both industry and consumers in all three countries,” said CPMA President Ron Lemaire. “On behalf of CPMA and its members, I would like to thank the Prime Minister, Minister Freeland, and Minister MacAulay for their steadfast support of the fresh produce industry during these negotiations. The USMCA will increase trade, provide business stability, and bolster our North American competitiveness for generations to come.”
United Fresh also said it has long supported efforts to modernize and improve trade agreements, and Robert Guenther, SVP of Public Policy, told me the team believes that the USMCA does just that.
“Trade with Canada and Mexico in particular is essential to the fresh fruit and vegetable industry. We applaud the signing of a new agreement that serves all respective countries and connected supply chains which will ensure that we can continue to meet consumer demands for more fresh fruits and vegetables. We look forward to working with Congress on its passage next year,” he said.
While this step is one in a positive direction for all parties involved in supporting the USMCA, Richard told me this is an unusual situation as there will be a new Congress to present the agreement come January.
“What’s different this time is you have a new Congress coming in, and they can only approve or not approve it, they can’t change it. What the Administration can do to address concerns of Congress is side letters without changing the agreement,” he explained.
While all associations showed support and said they would be monitoring the ratification process closely, it is too soon to tell where Congress will land. AndNowUKnow, too, will watch with interest as this continues to unfold.
UNITED STATES - The industry is still reeling from an oddly strident announcement by the CDC—advising retailers and shoppers to immediately discard all romaine lettuce just prior to the Thanksgiving weekend. Since then, many have been slow to resume romaine sales, fearing a lack of consumer confidence. Several major restaurant chains—including McDonald’s—have yet to readopt romaine, opting to include other varieties of lettuce in its stead.
According to a CNBC report, prices for other types of lettuce and leafy greens have soared.
In just a few weeks, the news source reported, the cost of a 24-count carton of iceberg lettuce rose as much as 168 percent—from $16.56 to $20.85 per carton on November 19 to $36.65 and $39.56 for that same carton.
“There has been a ripple effect, throwing other markets up as everyone is trying to supplement romaine’s being off the plate, retail, foodservice, you name it—everyone wants to know what we can do to make up for that,” Vince Ballesteros, President and CEO of River Fresh Farms, told ANUK.
Demand for iceberg lettuce continues to outpace supply, and other leafy green varieties like green and red leaf lettuce are reportedly following a similar trend.
“As always seems to happen, there is an initial response when you take a major component out of the marketplace and others start to fill that gap,” Trevor Suslow, PMA’s Vice President of Food Safety, told the news source. “Prices certainly have taken an increase.”
Suslow also told the news source that those romaine providers reentering the market in compliance with the FDA’s new voluntary labeling agreement will likewise be able to command a very high price, as demand for romaine remains relatively strong.
“Certainly as romaine is now going to start entering the marketplace for some period of time those that have it, those that are following the new labeling recommendations are commanding a very high price,” Suslow added.
AndNowUKnow will continue to report with the latest.
EXETER, CA - California Citrus Mutual (CCM) has won much needed support, and $25 million in funding every year for five years, with the resolution of this year’s Farm Bill. The Senate announced an “agreement in principle” today, and the final deal is expected to be made before the end of the year.
The funding provided by this agreement will be used to research the invasive species the Asian citrus psyllid, and the deathly plant disease Huanglongbing (HLB). This Emergency Citrus Disease Research and Development Trust Fund will build upon the groundwork of the 2014 Farm Bill’s Specialty Crop Research Initiative (SCRI).
“The trust fund language is a significant win for U.S. citrus growers. It's critical for the future of our industry and the domestic citrus market that we continue to invest in research aimed to find a solution for HLB," President of CCM Joel Nelson commented in a recent press release.
This latest Farm Bill funding compliments a program to stop the spread of HLB that has been funded by California citrus growers themselves, at the cost of nearly $40 million per year. Recently the state of California has also donated funds towards controlling the Asian citrus psyllid and HLB in urban areas where detection has been prolific.
Nelson continues, "On behalf of the California citrus industry, I want to thank the lead farm bill negotiators in both houses for their commitment to passing a Farm Bill that includes this vital funding for the U.S. citrus industry and specialty crops.”
Funding will also continue for the following programs:
- USDA Animal and Plant Health Inspection Service’s Plant Pest and Disease Management and Disaster Program
- National Clean Plant Network
- Technical Assistance for Specialty Crops
AndNowUKnow will continue to provide coverage of this year’s Farm Bill resolutions, and how they affect the industry and producers for the coming year.
WARSAW, POLAND - 350 pounds of cocaine was uncovered in an Ecuadorian shipment of bananas to Polish supermarket chain Stokrotka on Monday morning during a routine unpacking of fruit shipments. Local news chains and residents alike were shocked at the discovery of the popular street drug nestled among the crates of breakfast staples.
According to news source New Straits Times, Dawid Marciniak, spokesman for the Poland National Police Headquarters, was quoted in an interview with Agence France Presse (AFP) explaining that “employees found cocaine bricks covered by bananas inside boxes shipped to various outlets of a Polish supermarket chain.”
He admitted that some of the bricks weighed up to a kilogram each, but provided no further information due to ongoing investigation. With no arrests made yet, the question at the forefront of the case is discovering who ordered the shipment. With local estimates of the street worth of the shipment as high as $21 million, the perpetrator could have sold over 150,000 one gram bags had the shipment been received.
With Stokrotka supermarkets identity as a subsidiary of the Lithuanian retail chain “Maxima Group,” shipments could also appear in Lithuania, Latvia, Estonia, and Bulgaria if the chain itself was a part of the trafficking.
ANUK will continue to report on any other suspicious shipments, and how traffickers continue to use precious produce for nefarious deeds.
MIAMI, FL - Each year, the holiday season comes bearing gifts—sometimes it’s snow, others it’s sun, and depending on the year, I cherish both! This year, Crystal Valley Foods is checking organics off of consumers’ wish lists and bringing the gift of organics to grocery stores across the country thanks to a new handler certification and even newer items heading down the pipeline. I’m not a mind reader, but I think it’s safe to assume even ol’ Saint Nick will appreciate this.
I caught up with Katiana Valdes, Director of Marketing, to learn more about Crystal Valley’s latest accomplishments and what other exciting things the company has in the works as we head into 2019.
“Organic consumption continues to increase, and it is extremely important that we keep up with the demands of our customers and today’s consumer. The organic category will only continue to grow in the next several years,” Katiana told me. “As a result, we achieved our organic handler certification and were independently evaluated according to the requirements of the USDA National Organic Program by SCS Global Services. We currently offer year-round organic French beans, and seasonally, we offer organic asparagus, blackberries, and Florida-grown blueberries. We have other organic items in the pipeline as well.”
But Crystal Valley isn’t just a one-trick pony, and while the company is pushing an organics expansion, it is also redesigning, modernizing, and expanding its Miami-based facility to take its value-added items on a growth journey, too.
“The expansion will double the size of our facility, which will allow us to greatly increase the size of our production and repack area. In turn, this will increase our value-added product output and services, as well as increase our storage capacity by 50 percent,” Katiana said to me. “Our latest expansion will allow us to produce more value-added items and offer additional services like consolidation, cross-docking, and handling for customers and suppliers.”
Katiana also noted that Crystal Valley anticipates the modernization and expansion helping decrease the time it takes for carriers to load/unload at its facility. This, in combination with the facility’s location near the Miami International Airport, will increase efficiencies and benefit both its customers and suppliers. Along with the expansion, Crystal Valley is also investing in automated warehouse equipment and a warehouse management system, both of which will also streamline the company’s capabilities.
“We will be completing construction in phases as to not interrupt normal business. Phase 1 is set to start the first of the year, and we expect to have everything completed by early spring,” Katiana concluded.
Whether they’ve been naughty, nice, or somewhere in between, there’s no doubt that consumers will be thankful for Crystal Valley’s expansion efforts this holiday season.
Keep enjoying AndNowUKnow as we continue to bring you the very best holiday news as it relates to fresh fruit and veg.
PHOENIX, AZ - In a move that shocked the grocery sector this morning, Sprouts Farmers Market announced that its CEO, Amin Maredia, is leaving the company to pursue other interests, effective December 30, 2018. Taking his place for the time being will be Jim Nielsen, President and COO, and Brad Lukow, CFO, who will serve as the retailer’s co-interim CEOs until a permanent successor is named.
“It has been an enormous privilege to have been part of the Sprouts team during this incredible period in the company’s history over the past eight years,” said Maredia in a press release. “As I transition, it is comforting knowing that Sprouts is well-positioned with a strong management team for robust growth and sustained success.”
That press release also noted that the company is currently engaging with an executive search firm to best conduct its search for a new CEO. Maredia will remain available in an advisory role for a period of time to assist with the transition.
“On behalf of the Board of Directors, I would like to express our gratitude to Amin for his many years of service to Sprouts,” said Joseph Fortunato, Chairman of the Board. “Over the past three years, Amin has overseen our tremendous growth from coast to coast and put us on a firm footing for continued success. We wish Amin all the best in his future endeavors. While we search for a new CEO, the Board has deep confidence in Jim and Brad to continue executing the company’s strategic initiatives, driving shareholder value, and delivering on our mission of ‘Healthy Living for Less.’”
Who will the retailer find to take Marieda’s place? AndNowUKnow will have its eyes peeled for the latest in any developing news.