BENTONVILLE, AR - Retail grocery behemoth Walmart is showing no signs of weakness as it heads into the busy holiday season. This week, the retail giant announced it was raising its guidance for the full year, projecting a 3 percent increase in same-store sales. In addition, Walmart also reported a 43 percent increase in e-commerce sales and a 3.4 increase in comparative sales—a direct contrast to competitor Amazon’s sluggish core business growth.
“We have momentum in the business as we execute our plan and benefit from a favorable economic environment in the U.S. We’re accelerating innovation and utilizing technology to shape the future of retail. We’re making shopping at Walmart faster and easier,” said Doug McMillon, Walmart’s President and CEO. “Our associates are equipped with the tools to serve customers better than ever before, and they’re doing a great job. With the holidays approaching, customers can count on Walmart to save them money, and we’ll also provide busy families with another important gift—time back in their day.”
Many, like CNN and The Washington Post, are pointing to Walmart’s growing brick-and-mortar network and expansive online grocery services, combined with its strong job market (including rising wages and low unemployment) and rising consumer confidence, as the fuel in Walmart's tank.
According to a press release, Walmart also reported the following highlights:
- Total revenue was $124.9 billion, an increase of $1.7 billion, or 1.4%. Excluding currency2, total revenue was $126.1 billion, an increase of $2.9 billion, or 2.4%
- Walmart U.S. comparative sales increased 3.4% in the period and 6.1% on a two-year stack with broad-based strength and market share gains in key categories, according to Nielsen and The NPD Group
- Walmart U.S. omnichannel progress continues as grocery pickup is now available in nearly 2,100 locations and grocery delivery is available in nearly 600 locations
- Sam's Club comp sales1increased 3.2%3, and eCommerce sales grew 32%. Membership trends continue to improve
- Net sales at Walmart International were $28.8 billion, a decline of 2.6%. Excluding currency2, net sales were $30.0 billion, an increase of 1.6%. Comp sales were positive in nine of 10 markets.
- Adjusted EPS2excludes the impact of three items:
- An unrealized loss of $0.48 on the company's equity investment in JD.com
- A charge of $0.03 for foreign currency upon finalizing the sale of a majority stake in Walmart Brazil
- A benefit of $0.01 due to an adjustment in the provisional amount related to Tax Reform
To read Walmart’s report in its entirety, click here.
Will Walmart’s accelerated growth help it level the playing field with Amazon? AndNowUKnow will continue to report.
BAKERSFIELD, CA - Grimmway Farms welcomed United States Department of Agriculture Under Secretary for Marketing and Regulatory Programs Greg Ibach to its Arvin, CA, headquarters last week, highlighting Kern County and California agriculture. During the Under Secretary’s visit, company President Jeff Huckaby led a tour of the company’s local farmland and facilities, showcasing carrot processing technology and organic vegetable harvest operations.
Grimmway Farms and California Department of Food and Agriculture Secretary Karen Ross also hosted the November meeting of the California State Board of Food and Agriculture during the Under Secretary’s visit.
“We were honored to have Under Secretary Ibach visit Grimmway Farms and address the California State Board of Food and Agriculture,” said Huckaby. “We had productive discussions with the Under Secretary and were able to show him firsthand the importance of our industry in Kern County and California.”
During the meeting, Under Secretary Ibach addressed the group on issues facing Grimmway Farms and the agriculture industry at the state and federal levels.
“Meetings with our state partners are key to finding practical solutions to complex issues that benefit our farmers, ranchers, and producers,” said Under Secretary Ibach. “Thank you, Secretary Ross, for inviting me to the California State Board of Food and Agriculture meeting.”
According to a press release, the California State Board of Food and Agriculture acts as advisor to the governor and secretary, addressing key issues that are of importance to California’s farmers and ranchers, community stakeholders, and citizens. Board meetings—which are open to the public—occur monthly.
MICHOACÁN, MEXICO - After much back-and-forth in local and national news, it seems a recent avocado strike in Mexico has ended. Brian Denton of Colorful Plates Podcast, powered by Pro*Act, recently hosted an interview on the situation.
Patrick Cortes, Senior Director of Business Development at Mission Produce, discussed the latest in the Nov. 12 interview.
“A group of growers in Mexico, in the Michoacán area where a majority of the avocados are harvested, bound together because they were concerned about what they felt were unfair prices to be paid for their avocados. As a result they basically said ‘until we feel there are more just prices being paid for the fruit’ that they were going to go on strike and not harvest,” Cortes explained.
He discussed how avocados are a unique commodity in that they can stay and wait on the trees much longer than other fruits, meaning harvesters had time to wait out a satisfying resolution without losing too much fruit. Cortes confirmed there had been many meetings from both sides in an effort to understand grievances and come to an agreement.
It was the next day, November 13, that things looked up for the supply-side as an apparent end came to the stalemate.
“Mexico started harvesting this morning,” Denise Junqueiro, Director of Marketing for Mission, shared with ANUK late yesterday. “We anticipate it will take a couple of weeks to get industry supplies back up to normal in the marketplace and even a little longer for the market to experience adequate ripe volumes. Regardless, we are please harvest has resumed and the industry found resolution.”
The timing of the resolution came as avocados in the supply chain were dwindling. In the interview, Cortes states that what was left would be gone within the next week.
You can listen to the interview in its entirety, as well as Gabe Romero of PRO*ACT, and Patrick DeYoung of Field Fresh Farms sharing how operations moving to Huron, CA, and eventually Yuma, AZ, during the winter affects supply and quality, here.
CALIFORNIA - Citrus-fueled drinks, desserts, and more will be among the needs of consumers as the holiday festivities begin. With demand for the category on the rise, I checked in with the experts to see how citrus is faring.
“Cuties® clementines have just started up, and supplies will be increasing each week in November. We are getting the pipeline filled for the holiday promotions, and with our Cuties holiday packaging, Cuties displays shippers, our consumer Spread the Cheer Sweepstakes starting Nov 19th, we are seeing strong demand by retailers,” Kate Reeb, Director of Marketing for Sun Pacific, tells me. She explains that California navels are up and running with with decent sizing, great flavor, and that volume looks to be steady for the Thanksgiving holiday.
I ask her what the buy-side should note as one of the biggest eating days of the year approaches.
“With the holidays right around the corner, navel promotions are favorable toward bags, especially as it’s really convenient for retailers to drop a bin of bags on the produce floor to keep up with the holiday increased traffic and demand in the stores,” she says. “Vintage Sweets® from our old grove, super sweet heirloom navels, and Sun Pacific’s Cara Caras will fill out the citrus category in mid-December and allow retailers a variety of opportunities for promotions to delight consumers during the holidays. In addition, our Meyer Lemons are in big demand during the holiday season as they have become one of the hottest culinary ingredients for festive cocktails, holiday baking, and cooking.”
Monique Bienvenue, Director of Communications for Bee Sweet Citrus, comments that while citrus is in demand year-round, the industry always sees a higher need for many of the varieties available throughout the holiday season.
“With festive celebrations right around the corner, many of our specialty varieties are sought out for their healthy, nutritional components and delicious flavor profiles. Not only do our specialty varieties complement many holiday dessert recipes, they can also help families ward off the common cold and flu. Being that citrus fruits are an excellent source of vitamin C, citrus can act as a healthy immunity-boosting snack to many families this holiday season,” Monique shares.
“With California’s citrus domestic season in full swing, consumers can expect to see Satsuma mandarins, lemons, and Navel oranges at their local retailers. By the middle of December, they can also anticipate the arrival of Cara Cara navels, Blood oranges and Minneola tangelos,” she adds.
Sunkist Growers, too, is ramping up for peak winter citrus demand. But Director of Communications Christina Ward tells me that with experience on its side, the team is ready.
“Sunkist has been growing high-quality citrus for 125 years, and thanks to the California and Arizona sunshine over this past summer, we have ample volumes of all varieties for the 2018-2019 citrus season. The addition of Cara Cara and blood oranges are perfect for the upcoming holiday surge,” she says. “Our versatile displays and Sunkist citrus destinations make for an appetizing in-store holiday spread. We also have 2-3 pound bags for festive holiday cocktails and dishes; great for the bar and essential for the kitchen.”
As consumers look to stock up on all their produce ingredients for the holidays, AndNowUKnow will bring you the latest on those must-have categories.
ORLANDO, CA - This fall, temperatures might be cooling in North America, but marketing is reaching a torrid pace for T&G Global.
I had the opportunity to speak with Brock Nemecek, Regional Marketing Manager for Pip Fruit, at last month’s PMA Fresh Summit to find more about the company’s fall plans to encourage consumption and add oomph to sales of its signature Envy™, JAZZ™, and Pacific Rose™ apples.
“We have lots of marketing plans to support our three premium apple brands: Envy, JAZZ, and Pacific Rose,” said Brock, explaining that the JAZZ is currently in the middle of a major consumer campaign. “We’re launching the JAZZ’d Up Jeep national sweepstakes. Where we will, in 2019, be awarding a custom 2019 Jeep Wrangler, that’s ‘Jazz’d Up,’ to a JAZZ Fan.”
The next few months will be hot, hot, hot despite the recent cold snap, Brock told me, and our industry can expect a brand refresh for the Pacific Rose by early 2019.
“Also, in 2019, we will be rolling out the third annual Envy Road Show. And so that road show is gonna be all along the Eastern Seaboard going from Florida up to Toronto,” continued Brock. “We will be partnering with 7 to 10 major retailers and doing sampling demos—and also appearing at tourist attractions, consumer events, concerts, festivals, etc.”
For more, watch our video interview in its entirety above.
HOUSTON, TX - Foodservice distribution titan Sysco Corporation is planning a $15 million expansion to its Des Plaines, Illinois, refrigerated facility, according to local news source Journal & Topic. The expansion will reportedly add 70,000 square feet of additional capacity to the existing location in the greater Chicago area.
According to the Journal & Topic, a letter to the city authored by Namit Bammi of Bammi Law Group outlined the company’s plans to expand on its current 156,750-square-foot property at 501 S. Wolf Road.
Earlier this month, Des Plaines aldermen granted Sysco an extension of a property tax incentive first approved in 2004. The company will continue to pay a property tax rate of 10 percent—though the news source estimated that tax revenues from the property in 2017 totaled $502,366. The news source reported that Sysco was considering leaving the area, according to Bammi’s letter, were the incentive not extended.
The company currently employees 715 in Des Plaines, at both its Wolf Road facility and a 462,000-square-foot location at 250 Wieboldt Dr.
For more, read the Journal & Topic’s report in its entirety here.
AndNowUKnow will continue to report with more fresh fruit and veggie news.
YUMA, AZ - It’s that time of year again when many of California’s major produce growers head south for the winter. Right on target and gearing up for this annual transition from Salinas to Yuma, Arizona, is The Nunes Company and its Foxy Produce brand.
Joining me to share the latest on the move is Vice President of Sales Doug Classen, who looks to the highlights and the challenges equally as we move through November.
“It’s an early Thanksgiving on November 22nd this year, so a lot of items are transitioning right in the middle of the pull. We’ve planned ahead and feel we’ve got a good handle to make sure our customers have their trucks placed in the best area for efficient loading,” Doug tells me. “We grow all of our 40 different conventional and 35 different organic commodities, 365 days a year to offer our customers year-round coverage.”
Currently, the Nunes Company is finishing up on its last couple of weeks on broccoli, cauliflower, and celery in Salinas and has already started romaine and leaf vegetables in Yuma. Iceberg in Huron, California, will finish by the 16th and the team picked up in Yuma on November 12th. Celery has started in Oxnard. All conventional items, except celery, will be shipping in Yuma by November 26th. Foxy’s organic program will generally mirror the same schedule as its conventional program.
“We stress communication and service at all levels—from field operations, customer communications to the loading of our customer’s trucks,” Doug shares. “Transition with the wide variety of crops that we grow always poses a degree of challenge; however, we strive to communicate as best as possible with our customers to aide in making their pick-ups as smooth as is expected from our team at Nunes.”
With the Thanksgiving pull right around the corner, stay tuned to AndNowUKnow for the latest on the transition and the road ahead.
WATSONVILLE, CA - The time to get in on one of the produce industry’s premier events is now! Tour de Fresh is now accepting sponsorship opportunities for its sixth annual ride—and it’ll be one to remember. 2019’s ride will span the majestic Big Sur Highway One in California, starting in Monterey on October 12th ending up in in Anaheim on October 16th in time for PMA Fresh Summit.
“This year will be a milestone for the Tour with the potential of reaching one million dollars raised that directly put fresh fruits and vegetables on the plates of hungry school age children across the country, since the event’s inception,” said Cindy Jewell, Vice President of Marketing for California Giant Berry Farms. “We are proud to bring together individuals and companies that share the common passion in this industry to join together supporting this ride helping to improve the health of our nation.”
Tour de Fresh, presented by The California Giant Foundation, provides a variety of sponsorships levels that make it easy for companies within the fresh produce industry and beyond to get involved and support the goal of donating over 50 salad bars to schools. Companies can select from customized benefits based on sponsorship level as well as year-round media exposure and marketing opportunities. According to a press release, last year’s sponsors were included in more than 250 media placements in trade and consumer publications, which earned them more than 117 million total impressions and over $48,000 in ad equivalency per brand.
“Tour de Fresh is an amazing opportunity to work with our industry to not only give back to a worthy cause, but one with an initiative that aligns with our core values,” said Daniel Cooke, Senior Director of Marketing for Americold. “As soon as this year’s ride completed we couldn’t wait to sign back up for sponsorship in 2019—we are proud to continue being part of the Tour de Family.”
2019 will see the continuation of popular sponsorships like Finish Line and Premier, as well as new sponsorships. The new Tour de “Refresh” will allows the sponsor to work with Tour organizers to create a custom branded beer that will be provided to Tour participants at the end each day. Confirmed sponsors include California Giant, Americold, DMA Solutions, Sakata, Fight Like a Girl Foundation, PMA, and Paramount Export.
Tour de Fresh will continue to make headlines and provide excellent opportunities in the name of a good cause, so keep up with AndNowUKnow for the latest.
NEW YORK, NY - Blue Apron is taking the new year, new you philosophy to heart. In a bid to to accelerate its path to profitability, the meal kit company has released its plans to restructure its business in 2019.
“The ways in which consumers access meals for various occasions has evolved rapidly with expanded choice and the continued convergence of online platforms and brick and mortar stores,” said Brad Dickerson, CEO, in a company press release. “Blue Apron has an established brand and a strong foundation of loyal customers who trust and rely on the quality and convenience of our products. We are taking decisive actions to prioritize our highest-impact opportunities and build a stronger, sustainable business. As a result of these actions now underway, we expect to be profitable on an adjusted EBITDA basis in 2019. This included the difficult decision to part ways with valued employees. On behalf of the entire company, I thank these colleagues for their many contributions to the business.”
The press release noted these immediate organization-wide actions in its restructuring vision:
- Sharpening focus on direct-to-consumer business by prioritizing customer segments with proven affinity and retention, as well as attracting consumers with similar attributes
- Methodically expanding consumer reach through retail channels and on-demand platforms
- Streamlining personnel to create a more agile and focused organization, resulting in a headcount reduction of 4% of total workforce
- Further optimizing fulfillment center network to build on momentum of recently achieved operational efficiencies
The news of this plan broke the same day the company announced its third quarter report. Highlights of the report included:
- Net revenue decreased 28% year-over-year to $150.6 million in the third quarter of 2018, compared to the third quarter of 2017
- Net loss was $33.9 million in the third quarter of 2018 compared to a net loss of $87.2 million in the third quarter of 2017
- Adjusted EBITDA improved 61% year-over-year to a loss of $18.8 million in the third quarter of 2018, compared to a loss of $48.0 million in the third quarter of 2017
Will this restructuring give Blue Apron a fresh start? AndNowUKnow will keep you up to date.
MIAMI, FL - We’ve been watching with bated breath as retailers scramble to catch a corner of the emerging grocery delivery market. Any competitive edge could signal a sea change, and this week, Walmart announced plans to pilot a new program, partnering with Ford and app-based delivery company Postmates to test autonomous vehicle delivery services in Miami-Dade County.
“Retail is changing at a rapid pace, and what’s 'easy' in 2018 might feel old-fashioned in 2028. In fact, Walmart is already offering grocery delivery in nearly 100 metro areas and is continuing to innovate to find new ways to serve customers…” said Walmart’s Senior Vice President, Digital Operations Tom Ward, in a blog post published this week. “That’s why we are partnering with Ford to explore delivery with autonomous vehicle technology. We’re still learning—it’s a pilot—but, we want to make sure we stay on the cutting edge of grocery delivery by exploring what’s new and next.”
Ward noted that the company hopes to learn how to best take advantage of self-driving vehicles to deliver fresh groceries, and Ward noted that its current delivery partner Postmates is already connected to Ford’s digital platform.
“Walmart and Ford agree autonomous vehicles have an important role to play as we consider the future of delivery,” added Ward. “Before self-driving cars can go mainstream, we must get a better sense of how people want to interact with them. Together, we will gather crucial data to learn the best way to bring items to customers.”
Will Walmart’s partnership with Ford and emphasis on autonomous vehicle delivery give the retailer a competitive edge against its rivals? AndNowUKnow will continue to report.