PARAMOUNT, CA - Mexican supermarket giant Grupo Comercial Chedraui—parent of U.S.-based Bodega Latina Corporation—has announced plans to acquire Texas Hispanic grocery chain Fiesta Mart—an acquisition that would create one of the largest Hispanic-focused supermarket companies in the U.S., operating a total of 122 stores across California, Arizona, Nevada, New Mexico, and Texas, and earning revenues of approximately $3 billion USD.
“The acquisition of Fiesta allows us to meaningfully expand into Texas via an established, well-known supermarket operator,” noted Carlos Smith, President and CEO of Bodega Latina, in a press release. “Through the combination of the strengths of our two organizations, we will be well positioned to significantly accelerate our vision of efficiently offering high-quality products at the lowest possible prices. We believe this transaction will be beneficial for all of our stakeholders, including customers, suppliers, employees, and vendors. We look forward to welcoming Fiesta's talented employees and working together to create the premier Hispanic grocery retailer.”
The merging companies noted, in a joint press release, that over 50 percent of the growing U.S. Hispanic population resides within the five states in which the company operates, and noted that the merger of these high-profile Hispanic supermarket chains would further enhance the customer shopping experience via improved pricing, quality, and customer service.
“Combining the strengths of Bodega Latina with those of Fiesta will accelerate the evolution and growth of Fiesta through combining the parties’ scale, geographic reach, talented teams, and market knowledge,” Sid Keswani, CEO of Fiesta Mart, said. “Our team members are excited about becoming part of the Bodega Latina family and continuing to grow the combined company.”
José Antonio Chedraui Eguía, CEO of Chedraui, also noted that the acquisition is a major step for Chedraui as the company looks to further expand its reach throughout the U.S.
“We are excited about the combination of Bodega Latina and Fiesta, which further expands our U.S. footprint,” said Chedraui Eguía. “Grupo Comercial Chedraui is committed to growing our U.S. business both organically and through acquisition.”
The acquisition is expected to close early in the second quarter of 2018, and Fiesta stores are expected to continue to be operated under their own banner.
For more fresh-focused retail news, keep reading AndNowUKnow.
LEAMINGTON, ON - NatureFresh™ Farms’ General Manager, John Ketler, announced that the company’s newest greenhouse expansion is slated for later this year in Leamington, Ontario. Construction of a new 32-acre greenhouse facility will commence this summer, increasing the team’s presence in the tomato category in 2019, when production is scheduled to begin.
The new facility will house a variety of tomato crops, including TOMZ® Snacking Tomatoes, Tomatoes-on-the-Vine, and Beefsteak Tomatoes. The range of tomato varieties are to be grown using supplemental lighting, allowing for year-round production of fresh, Canadian-grown tomatoes, according to a press release.
NatureFresh Farms expanded its greenhouse production into the United States in 2015 with the construction of a 45-acre facility in Delta, Ohio, where it also grows TOMZ® Snacking Tomatoes, Tomatoes-on-the-Vine, and Beefsteak Tomatoes, but using High-Pressure Sodium (HPS) lighting, allowing year-round availability of Ohio-grown Tomatoes.
With supplemental lighting and other innovations being launched in the new facility, the company said that its new Leamington greenhouse will be equipped with the same state-of-the-art growing technologies as seen in Ohio.
“The first full growing season in our Ohio greenhouse has been very successful so far, so with the same technology that we use in Ohio being implemented in our new Leamington greenhouse, we expect similar success,” said Matt Quiring, Executive Retail Sales Accounts Manager. “We should see higher production, greater efficiency in the growing process, and consistently high-quality products from our new Canadian greenhouse.”
This latest expansion will mean that NatureFresh Farms will be growing flavorful, high-quality tomatoes across 90-plus acres of greenhouses, and said that it looks forward to further development as a leader within the industry as it continues to meet increased market demands within the tomato category.
CASTROVILLE, CA - While it is no secret that California has experienced a deluge of strong storms, Ocean Mist® Farms cautions retailers to expect a delay on artichokes. Artichoke lovers eager to get their hands on Ocean Mist Farms Frost Kissed® artichokes, a “limited-edition” flavorful variety only available when the temperature drops below 32 degrees, may wait a little longer than anticipated due to weather conditions across the state of California, our reporting on which has been ongoing.
“In mid-February, both of our growing regions in Coachella and Castroville, California, experienced heavy frost followed by rain. These two successive weather events have caused not only the frosted appearance but also has reduced supply,” explained Dale Huss, Vice President of Artichoke Production.
Though this limited-quantity production means that there will be fewer artichokes available for purchase in stores, the most ardent of artichoke shoppers should still be able to find some chokes in time for the Easter Holiday, according to a press release.
“Unfortunately, this year, artichoke availability is severely limited at a time when there are usually good quantities,” commented Diana McClean, Senior Director. “Typically, we launch an annual artichoke consumer promotion late March or early April and align our messaging to inspire consumption around the Easter holiday. This year, however, we are postponing the launch until artichoke conditions recover.”
Ocean Mist hopes to have quality artichokes available in the next few weeks, so long as the frost stays at bay. And, Huss said, “Once the weather situation smooths out, we anticipate solid supplies for the rest of the year.
To follow crop supply and quality in our ever-changing industry, keep reading AndNowUKnow.
STILLWATER, MN - Tulips are not the only things returning this season. SuperValu has announced plans to return to its 3900 Industrial Road, Harrisburg, Pennsylvania, location, as it invests $69 million into the wholesale distribution center that will serve Northeastern customers. While the company announced in 2008 that this same distribution center would close by 2010 in an effort to consolidate into a Lancaster County facility, the new announcement of its reopening was made by Governor Tom Wolf.
The reopening of this distribution hub, which is nestled off Interstate 81 and next to the Norfolk Southern intermodal railyard, will hire 350+ people over the course of the next three years, a necessary move as the $16 billion in annual sales that the company currently has requires more space and people to accommodate its growth.
After selling the property for $30.3 million in 2008 to a private equity firm, the company purchased the 750,000-square-foot distribution center for a whopping $37.1 million last year, according to Dauphin County deed records. And after the purchase was completed, the company began renovation of the facility to begin shipping operations.
"Shipping for certain departments has already begun with additional departments coming online throughout the year," said External Communications and Public Relations Manager Mike Wilken, according to Central Penn Business Journal.
Minnesota-based SuperValu has gained funding from the Department of Community and Economic Development, including a $740,000 Pennsylvania First grant and a $166,500 allotment from WEDnetPA for employee training.
The new deal was facilitated by the Governor’s Action Team, professionals dedicated to Pennsylvania’s economic development who report to the governor.
"This speaks to the strength of the Harrisburg market as a distribution hub," said President and CEO of the Harrisburg Regional Chamber and Capital Region Economic Development Corp Dave Black, who added that this decision by SuperValu points to the region’s economic recovery. He expressed that, after economic trials 10 years ago, the region is seeing many businesses returning and investing in new facilities, including distribution centers like that of SuperValu’s.
The company currently distributes to 3,300+ stores throughout the country—3,100 of which are independent and franchise grocers, and 200 of which are grocery stores operating under any of the following banners: Cub Foods, Hornbacher’s, Shop ‘N Save, Shoppers, and Farm Fresh, which saw 21 stores recently depart.
For more fresh produce industry news like this, keep checking back with us at AndNowUKnow!
OXNARD, CA - After the success of Mission’s Small but Mighty avocados in conventional bags, the company announced the launch of the line in organic format. The organic line will be a facsimile of the conventional line with the added attraction of Mission’s signature purple straps to signal to consumers that the product is organic. The Organic Minis are ~2.5 oz and perfectly-sized for a sandwich, smoothie, or stand-a-lone snack.
“This Organic Minis bag holds true to our initiative to efficiently sell what the tree produces,” said Brent Scattini, Vice President of Sales and Marketing. “By creating this package for small organic fruit, it gives us the opportunity to develop a retail organic bag that addresses a consumer need while optimizing our fruit utilization from the tree.”
The Organic Minis are supplied out of Mexico and California, and Mission will provide additional product out of Peru as sales ramp up in summer. Available in 2-pound value bags with 8-10 minis, and 6-count bags, the avos are Heart-Certified by the American Heart Association®, according to a press release.
“Organic avocado trees have always produced these extra small avocados, but they’re typically packed in bulk for foodservice. With the advent of healthy-snacking trends, to-go packaging, and 100-calorie packs, we knew there was a need for a value-added small organic avocado,” said Megan Berenbach, Organic Category Manager. “Our Organic Minis bag adds to the options that we can present to our retail customer base.”
To stay in the know on progress on the organic front, keep reading AndNowUKnow.
BAKERSFIELD, CA - Reaching a milestone year in 2018 is one of the major players in California’s date industry, Atlas Produce. Celebrating its 15th anniversary this year and having recently launched the company-wide brand refresh Fresh Energy™ by Caramel Naturel®, Atlas is primed to elevate its date program across retail produce departments with a program full of new highlights and initiatives.
Founder and President Robert Dobrzanski joins me to discuss the growing business and what we have in store for the new brand and the year ahead.
“We rolled out our new Fresh Energy by Caramel Naturel label in late 2017, and as we gear up in June and July for the upcoming 2018 growing season, we will be fully integrating the rebrand and investing in on our retail partnerships,” Robert tells me. “In addition, Fresh Energy will be focusing our messaging on our growing regions in Coachella, California, as a key selling point for the new brand. If you look back 25 years ago, Coachella was a blip on the map for the traditional consumer, but now everyone gets excited about the area. Between the booming popularity of the Coachella Music Festival and the growth of agriculture in the region, we have been able to direct our marketing efforts at millennial consumers who now recognize Coachella for a wealth of reasons.”
Retailers aiming to capture sales in the date category can also get excited about new merchandising solutions soon to come from the date powerhouse. Additionally, Fresh Energy labels were designed to pop on the shelf and bring a vibrant, eye-catching aesthetic to the specialty produce segment.
“Our date sales have been on an upward trajectory since the category began to make headway in mainstream consumer baskets, and we have grown our portfolio to include a variety of offerings to address the flavor demands of the consumer spread,” Robert shares.
Under the Fresh Energy label, the program now includes Whole and Chopped Medjool Dates, Golden Dates, and Date Coconut Rolls as well as Date Almond Rolls, Pitted Deglet Noor, and Organic Whole Medjool Dates. Fresh Energy’s dates are all jumbo in size and have some of the best flavors in the industry.
“Dates have gone from a seasonally promoted item to a year-round category, thanks to consumer demand,” Robert adds. “This will really be a big year for us. In 2018 we will be revamping our website as well and doing some special promotions with retailers. We have had such great success with Caramel Naturel and are extending that same commitment and value to our partners with the Fresh Energy rebrand.”
Congratulations, Robert, on your 15th anniversary year and the continuing success of your new Fresh Energy program!
SEATTLE, WA - In an effort to further tap into the audience that only plant-based food can appease, Starbucks announced plans to expand its vegan offerings. At the Seattle Center, Starbucks held its annual shareholder meeting, where the company’s COO, Rosalind Brewer, revealed the coffee chain’s plans to grow its vegan line.
“We have a line that we’d love to share with our customers later this year, so it is in our plans,” Brewer said. “We know our customers ask us that repeatedly, and we’ll be responding.”
The move, according to Inverse, was sparked by Compassion Over Killing (COK), an animal rights group that was at the shareholder meeting.
“Starbucks brightened our mornings when it became one of the first national coffee chains to pour out non-dairy milks,” said Jonathan Rosenberry, COK's Video Production Manager and a shareholder in Starbucks. “But millions of consumers are seeking hearty plant-based foods to enjoy with their coffee—and that’s where Starbucks’ menu still doesn’t live up to the buzz.”
Seattle will see a lot of mobile ads this week, after COK released them to align with the event. The ads are targeting Seattle’s 200,000 people, and feature Jane Velez-Mitchell, a journalist and animal rights activist.
Among other options, the company has released plant-based breakfast items, sweet and savory snacks, and a vegan lentil salad since its first launch of vegan options in 2015.
“Yet, while CEO Kevin Johnson has stated the company’s plan to boost slumping sales by offering more plant-based options, Starbucks has yet to offer filling vegan dishes across the country,” said COK.
Vegan options are aplenty these days, and Starbucks’ recent addition to its line will be right in line with others, including McDonald’s and Green Chef.
How will other chains react to the evolving Starbucks lineup? Will we continue to see a spike in interest and vegan offerings from diverse members of the industry? AndNowUKnow will continue to report.
GAINES TOWNSHIP, MI - After Grand Rapids lost out to more tech-savvy locations in the running for Amazon’s HQ2 location earlier this year, is Amazon eyeing Michigan for a different proposed facility? According to a report by MiBiz, many are speculating yes. Last week, a group called Project Rapids went before Gaines Township’s planning commission to propose an 855,000-square-foot distribution center. While Project Rapids did not disclose the developer by name, many have assumed Amazon is behind the project.
The project is currently proposed for 100 acres of land owned by Steelcase, and in its application, Project Rapids outlined plans for a two-story warehouse and distribution center building with an internal floor area of roughly one-million-square-feet, including 55,000-square-feet of office space.
If the Project Rapids’ proposal is approved, the request will go before the Gaines Township Board on April 9th, followed by a more detailed site plan set to be presented to the Planning Commission at its April 22nd meeting.
“Our timing for the project is such that we want to go through the feasibility stage in the next 60 days, April and May, so that we could be in a position to begin construction in June,” a member of the Project Rapids team said, according to local ABC affiliate WZZM13.
Amazon, however, has yet to confirm its place in the project; Shevaun Brown, Amazon’s Regional Operations PR Manager, writing in an email to MiBiz, said: “Amazon is constantly investigating new locations to support the growth and increase the flexibility of its North American network to address customers’ needs. Amazon is not yet commenting on any specific plans in Michigan.”
And while Michigan is not uncharted territory for the e-commerce giant, as it is currently in various stages of development and construction for three facilities in Detroit, will Amazon claim Michigan as the site for its next distribution center? AndNowUKnow will continue to report on the latest.
CHICAGO, IL - Packing a one-two combo this year in an effort to change the way people think about food artistry and food waste, are a pair of innovative organizations, Culinary Fight Club and Fight2Feed. With both groups citing 2018 as a year of expansion and growth, their CEO Jiwon McCartney joins me to discuss the road ahead and the mission for each.
“The vision and ultimate goal for growth is to expand Culinary Fight Club (CFC) into every state in the U.S.,” Jiwon shares with me. “Fight2Feed (F2F) was created with the intent on affecting change in the U.S. With a food waste statistic of 40-plus percent in the U.S. alone, I am compelled to believe that it is time to make change happen. CFC events are currently the sole funding source for F2F received regularly. With 20 percent of it ticket sales going to F2F, we put every dollar right into the meals we serve.”
CFC drives engagement and visibility and makes an intense sporting event out of cooking, bringing the passion of a high-energy kitchen and the thrill of a timed competition for the audience to enjoy. As a charitable organization, Fight2Feed has a mission of rescuing food from restaurants through chefs’ and food distributors’ donations, and by mobilizing meals made by Fight2Feed volunteers and chefs to share with hungry folks in need. F2F started with once a month service of 300 to 500 meals and now serves twice a month with upwards of 700 to 1,000 meals just in Chicago alone.
To add to the excitement around the CFC and F2F initiatives this year, Reinhart Foodservice (RFS) is also jumping on-board as an event and pantry sponsor in key markets in 2018 and will be assisting in five cities, including Kansas City, Missouri; Omaha, Nebraska; Boston, Massachusetts; Chicago, Illinois; and Ohio to support Fight2Feed with resources and donations.
Now, with Atlanta, Georgia, and Kansas City picking up the cause with newly inducted F2F chapters, Jiwon’s hope is that they can continue to inspire others to taking action.
“If we can make any dent in food waste and getting it to those in need, we have made a world of difference and that is all we can hope for. One step at a time," she says.
When I ask Jiwon what makes her so passionate about the projects, she tells me that CFC is something she is personally drawn to.
“I love watching cooking shows and I’m seriously a closet Gordon Ramsey fan. Top Chef is another fave show I love, and it always made me wonder how they can do it all so well,” Jiwon reflects. “I knew how long it took to prep and I asked myself, who the heck cooks like that in their own homes? And, why shouldn’t we cook fresh at home like they do? Well then, I started to challenge the theory.”
The questions lead to Jiwon finally asking, “Can they do that in my kitchen, with limited time, limited equipment, limited ingredients, and conclude with the creation of amazing delicious gourmet plates?”
Jiwon’s initial hope was that CFC live events could reveal to all of us that it can be done—we can all cook fresh.
“And maybe we can change our behaviors about eating out for convenience and make better choices about food. CFC can inspire people to start traveling for their favorite foods, rather than expecting it as quickly and as accessible as possible. This is why we are now in 19 cities—to connect the dots and inspire a ‘will travel for food’ movement,” Jiwon tells me.
So, exactly what markets and how many events will be in each region for 2018? Check it out...
- CHICAGO (6)
- ALABAMA (3)
- ATLANTA (3)
- BOSTON (3)
- CALIFORNIA (3)
- CHARLOTTE (3)
- KANSAS CITY (3)
- NASHVILLE (3)
- NEW ORLEANS (3)
- OHIO (3)
- OMAHA (3)
- TEXAS (3)
- DENVER (1)
- INDY (1)
- FLORIDA (3)
- MILWAUKEE (1)
- PHILLY (1)
- SOUS CITY (1)
- MINNESOTA (1)
As a message to the industry, Jiwon tells me that sweat equity is king.
“We can rally, raise money, recruit supporters, beat the bushes, and engage the masses with quality volunteers and leaders. In fact, I believe a community of great volunteers and leaders can do anything,” she says.
Congrats, Jiwon, on the amazing impact of both operations, and we are excited to see you shoot for the stars in 2018!
CALIFORNIA - The atmospheric river, on which we previously reported, has arrived, and it has arrived in full force! According to SFGate, the system dumped several feet of snow to elevations above 8,000 feet and brought a slushy mix of rain and snow to lower elevations.
Snow plows faced an apparently indomitable plain of snow drifts that rose above the tops of trucks, and, according to the news source, the roads were still impassable mid-day yesterday. Ski resorts, including Squaw Valley and Alpine Ski resort, were forced to shutter their lifts by early afternoon due to high avalanche conditions.
Due to its origins in the Pacific Ocean, this storm was warmer than the typical winter storm, and carried greater quantities of moisture, which it dumped as rain at elevations where snow may normally fall. But, despite the immense rains at lower levels, above 8,000 feet, the moisture rich storm bore more snow than a normal, colder winter storm could, explained SFGate.
The National Weather Services out of Reno reported considerable snow at high elevations with five feet of snow at elevations above 8,500 feet in Sonora, Ebbetts, and Carson Pass; and three feet of snow at elevations of about 7,000 feet for Donner Pass and Echo Summit, according to the news source.
With a second, more typical storm set to pass through the Sierra tonight, March 23rd, how will California's at-risk snowpack hold up into spring? AndNowUKnow will keep you updated on any storm systems that may impact crop production or drought conditions.