ROSEMONT, IL - Foodservice distributor US Foods Holding Corp. announced its third quarter and first nine months’ earnings for 2017, and the findings are cause for celebration.
“Strong volume growth with our targeted customers and adjusted EBITDA growth of over nine percent underscored our third quarter performance,” said President and CEO Pietro Satriano in a recent press release. “Our Great Food. Made Easy. strategy continues to resonate with customers as demonstrated by the increased demand for our portfolio of value added services. Customer response to our most recent Scoop™ offering has been the strongest to date and highlights the continued momentum in our business.”
The company’s third quarter saw case volume increased by 2 percent, and 1 percent of that was organic growth. Independent restaurant case volume grew 6 percent, and 4.1 percent of that was organic. With so much growth in these sectors of its business, the company’s loss of national chain customers was offset.
Third quarter highlights included the following:
- Total case volume increased 2.0%; independent restaurant case volume increased 6.0%
- Net sales increased 6.2% to $6.2 billion
- Gross profit of $1.1 billion increased 6.4%
- Operating income of $190 million increased $75 million
- Net income of $96 million decreased $37 million
- Adjusted EBITDA increased 9.4% to $267 million
- Diluted EPS of $0.42; Adjusted Diluted EPS of $0.39
Among establishing factors enabling net sales to increase so steadily, the company named the drive from total case volume growth; product mix changes; and year-over-year inflation in center-of-the-plate, produce, and grocery categories. Sales from acquisitions in the last 12 months have also helped the net sales jump up 1.9 percent.
For 2017, US Foods said it is updating its fiscal 2017 guidance. It expects unit growth of 2.5 to 3 percent and net sales growth of 4.5 to 5 percent, as well as an adjusted EBITDA growth of 8 to 9 percent, and net income growth of 20 to 25 percent.
Congratulations to US Foods on the success of the moves made thus far. AndNowUKnow will continue to report on this and other key produce-centered strategies.
WENATCHEE, WA – Wenatchee-based Keyes Packaging Group welcomed produce industry veteran Jeff Burroughs as the Vice President of Business Development.
“Jeff’s deep produce industry knowledge and sales expertise impressed us immediately,” said Ted Kozikowski, Keyes Packaging Group CEO, in a recent press release. “He will bring new opportunities to expand our business as we look to the future.”
After working with Georgia Pacific/Tosca as Director of Sales for the produce packaging sales team, Jeff is well-connected within the industry and will be an important asset in developing new business with an expanded product portfolio. Based in Monterey, California, Jeff will focus nationally on the avocado, wine, and egg industries.
“I am pleased to join the Keyes Packaging Group team. They are a leader in manufacturing sustainable packaging. I look forward to adding value to a company with an over 100-year history of being a good environmental steward,” said Jeff.
Jeff’s arrival is part of ongoing Keyes Packaging Group efforts to respond to the rising demand for responsible food and beverage packaging, changing consumer shopping habits, and a revitalized focus on new products.
Good luck to Jeff in his new role! For more news like this, keep checking back with AndNowUKnow.
QUERÉTARO, MEXICO - Protected agriculture in Mexico has experienced unprecedented growth in recent years, and shows no signs of slowing. As we wind down 2017 and ramp up for the New Year, bell pepper grower, packer, and shipper FreshMex is celebrating 10 years of growth and a renewed commitment to evolving the Mexican greenhouse sector.
To commemorate the anniversary, the company recently welcomed guests to its facility in October to meet the team and share in the celebration. FreshMex General Manager and current President of AMHPAC Oscar Woltman, joins me as we move into November, to discuss what 10 years has brought to FreshMex and the milestones that have paved its way.
“Operating 7.5 hectares of Venlo greenhouses in Querétaro, Mexico’s Agropark, FreshMex has been exporting worldwide since 2007 through our parent company, Levarht,” Oscar shares with me, adding that FreshMex offers the unique position of being situated inside an agro-industrial park that specializes in the production of vegetables with high exportation quality, as well as providing one of our industry’s hubs for ultra high-tech glass greenhouses. “It has been a quick and exciting 10 years, and our progressive vision has helped us bring high-quality greenhouse produce to the global marketplace.”
The groundbreaking for the operation began in March 2007 and quickly arrived at completion by September 2007. The first harvest kicked off on December 12, 2007, and as Oscar tells me, they were blessed from the beginning, as the 12th is the Day of the Virgin of Guadalupe in Mexico.
“Not many glass greenhouses in Mexico produce peppers,” Oscar says. “We have created alliances with several other greenhouses to train, select, pack, and export their certified produce in addition to our own–this has helped not only FreshMex grow, but the region as a whole. Our relationship with local producers is based on shared values and strategy, knowledge transfer, transparency, and honesty.”
And when it comes to growth, FreshMex has the numbers to tell the tale. FreshMex sales have grown by 400% in 10 years, and almost 10% of the personnel have worked for the company for 10 years now.
“We stimulate employee development in technical training and development as well as emotional knowledge,” Oscar adds. “And in 2017 we also completed a new project with 2.5 hectares.”
FreshMex is GLOBAL G.A.P., WCA, Primus, Senasica, CTPAT and NECC certified.
“As a Dutch-owned company, we use 100% Dutch technology throughout the process which enhances the quality and taste of our products,” he tells me. “The FreshMex production process is in compliance with the more demanding food safety and quality standard programs.”
Since 2012 FreshMex has also been a member of AMHPAC, the Mexican protected agriculture association, which has 230 members with an annual export value of $1.3 billion USD. Oscar has been a member of the council since 2013 and President of the AMHPAC council since 2016.
Congratulations FreshMex, on 10 years of growth and evolution, and cheers to the exciting road ahead!
SALINAS & YUMA, CA - At Church Brothers Farms, we farm and produce our salads where our veggies are in season, for a year-round supply.
April through November we are in Salinas and the San Juan Valley of California for Spring and Summer seasons. Then, November through April, we are in Yuma, Arizona, and California's Imperial Valley for the Winter season.
Twice a year, we uproot our True Leaf Farms team and entire salad plant to enable us to produce our salads at the source. This assures our customers get the freshest product possible.
With the work of 200 people and 60 trucks, we break down, move 500 miles, and rebuild our salad plant in 58 hours.
Why do we do this? For our customers. To make the freshest salad possible—so they come back for more!
We salute our True Leaf Farms salad plant team.
IMMOKALEE, FL - Procacci Brothers President Mike Maxwell is the newest addition to the Eastern Produce Council’s Executive Board, succeeding Sal Zacchia who passed away this Spring.
“I’ve been involved with the Eastern Produce Council for many years, including serving as a Director over the last year,” Mike tells me when I ask him about his new position. “The EPC is a tremendous resource for networking, business development, and produce education. In my opinion, there is no organization that has been more influential in furthering the interests of our industry. I’m honored and excited to take on this new challenge as a member of the EPC Executive Board.”
With over 450 current members, the Eastern Produce Council aims to advance the sales and awareness of fresh fruits and vegetables and organizes a vast network of members that includes retailers, wholesale distributors, growers, venders/brokers, logistics and transportation professionals, as well as commodity groups, food service, and other associations.
Mike served as a Director for the Produce Marketing Association before becoming Procacci Brothers' President, where he is committed to building strong and unique programs, including private labeling, direct-store-delivery, and providing access to a diverse range of products and pack sizes.
ANUK wishes Mike luck in this important new role! For more produce industry news, stay up-to-date with AndNowUKnow.
SOUTH SAN FRANCISCO, CA - A new investment by Jeff Bezos has the man behind the Amazon Whole Foods buyout getting into the fresh produce business, according to a report from Business Insider. Bezos reportedly has taken his place alongside the likes of Eric Schmidt of Alphabet, SoftBank Vision, and DCM Ventures to get in on the ground floor of Bay Area-based vertical farming startup, Plenty.
With the new investors signing on, Plenty announced it will now open a 100,000-square-foot farm in Kent, Washington, where the startup hopes to grow pesticide-free, “backyard quality,” fresh fruits and vegetables for consumers in the Seattle and Vancouver, B.C., areas. This second farm marks the first occasion Plenty will grow beyond its home in South San Francisco.
Business Insider reports that Plenty’s new farm will grow 4.5 million pounds of greens annually, which, according to the USDA, is enough to feed around 183,600 Americans. Set to come online in spring 2018, Plenty’s twist on the classic produce farm means that all of its crops will grow on glowing, LED-lit, 20-foot-tall towers, taking all soil, pesticides, and even natural sunlight out of the growing equation. Those of us in the biz know this is called indoor vertical farming, and allows for a climate-controlled, year-round growing option.
In Seattle, Plenty has said it will begin growing leafy greens and herbs first, but will later expand to fruits, such as strawberries, tomatoes, and watermelons. CEO and Co-Founder Matt Barnard told Business Insider the company will begin selling in 2018 under it’s newly achieved organic certification, and may be even looking at delivery as one option for distribution.
“Seattle’s emphasis on delicious, healthy food and energy and water efficiency makes the area a natural fit for our next Plenty farm,” said Barnard in a press release. “At nearly 100,000 square feet, Seattle will be home to our first full scale farm and help set the standard by which our global farm network makes locally-grown, backyard-quality produce accessible to everyone. We’re excited about what’s next and look forward to building the Seattle team.”
To date, after Bezos’ contribution, Plenty has raised $226 million, which Barnard said will help the company fund new farms around the world in order to drive down prices and costs.
Will the Amazon leader move further into fresh produce investments as he seems to be keeping a watchful eye on the food industry? AndNowUKnow will keep you apprised with the latest.
LOS ANGELES, CA - After teaming up with Freida's Produce, Steinbeck Farms, and Suntava Purple Corn, June Pagan’s Purple Earth Cuisine was set to present at Los Angeles Food Policy Council’s Future of Food event, only to be given a Certificate of Recognition itself. At the L.A. City Hall-stationed event, approximately 500 people gathered to see purpose vegetables in action, as demonstrations and tastings were on display.
“It was a magical week, in that I connected with so many like-minded caring Permaculture devotees. It’s very exciting. The community gardens represent a place to reduce stress, to connect with your neighbors and to create a source of nourishment, which is desperately needed,” Pagan told me.
Over the course of the week, Pagan used Frieda’s purple veggie donations by having a purple pizza tasting for over 350 people, serving Purple Earth Cuisine for photographers in Montebello’s community garden, and contributing to Feed the People, a community group that is affiliated with Seed Library of Los Angeles.
Frieda’s Produce supplied Pagan with purple sweet potatoes, purple potatoes, and purple kohlrabi. Steinbeck Farms offered up purple cauliflower, and Suntava Purple Corn gave Pagan corn flour. After Pagan worked diligently to showcase food highlighting disease-preventative measures, the Certificate of Recognition was a welcome treat!
“I’ve known June Pagan for over 30 years, and she has always been a pioneer in healthy eating options," commented Karen Caplan, CEO of Frieda's Produce. "She contacted us when she first launched her PurpleEarth Cuisine, as she knew we are kindred spirits: Purple and purple foods are our trademark. She is truly a food artist.”
As Pagan continues to navigate the food industry, her hard work will not go unnoticed.
Congratulations to Purple Earth Cuisine for putting your health-focused stamp on the community in which you serve.
AUSTIN, TX - New Year’s resolutions are right around the corner, but instead of letting businesses and customers fret about new-year-new-you proposals, Whole Foods Market announced that its global buyers and experts have done all the heavy-work them. The group created a list for the most anticipated trends in the food industry for 2018 so that businesses can rest assured their resolutions are researched and well-thought-out. Broken down into a few easy-to-digest points of reference, Whole Foods’ recent press release outlines what business trends we should expect to see for the coming year, especially in produce.
Festive and Floral
Edible flowers step up to the plate, reaching beyond the centerplace arrangement. For customers looking for a subtly sweet taste and an aromatic experience, this is a great pick! For shoppers tired of the same herbs seasoning their holiday dishes, get a head start on this trend by trying them in place of go-to herbs. Elderflower is the Most Valuable Petal (MVP) to add pizazz to dishes year-round.
Mushroom Varieties
Customers are looking to mushrooms as more than just a dietary supplement. The wellness-supportive ingredient includes varieties such as reishi, chaga, cordyceps, and lion’s mane, and they are heading to bottled drinks, coffees, smoothies, and teas near you! Another great way to incorporate this must-have item into your store is to showcase it as a mushroom broth, preserving the earthy, creamy notes.
Transparency for Product and Production
“Curiouser and curiouser,” cried Alice in her adventures in Wonderland. Fast-forward to 2018, and “curiouser and curiouser” our industry’s customers are looking to become, as they strive to gather more insight into product labeling and the stories of the farms behind their food. Consumers are looking to travel into our Wonderland of produce for GMO transparency, Fair Trade certifications, production responsibility, and animal welfare standards when it comes time to make dinner.
Plant-Based Taste and Technology
Diets are becoming more diverse, and one that has garnered much popularity is the plant-based diet. Science has reportedly advanced to such a degree that plant-based ingredients and proteins can be changed. For example, “bleeding” vegan burgers and “not-tuna” sushi from tomatoes are some alternatives for consumers. Nut milks and yogurts are also going to face this same alteration process this coming year to keep up with the rising interest in the plant-based lifestyle.
Root-to-Stem Recipes
Customers are wanting the whole thing—whatever produce they purchase, they just want it all! Whole Foods’ experts found that consumers are looking to use everything their food has to offer, including the fruit or vegetable’s leaves and stem. This trend works great for recipes, such as pickled watermelon rinds, beet-green pesto, and broccoli-stem slaw. Always the innovators, consumers are looking to grocers for help in their dinnertime ventures.
Powder Players
Adding energy- and health-boosting items to our meals is easy-as-pie with the addition of powders, which are a great way to add nutrients to daily must-haves. Lattés, smoothies, nutrition bars, soups, baked goods, and more are all made better when customers find they can get more bang for the buck. Some powders to showcase to your customers are matcha, maca root, and cacao for energy boosts; ground turmeric for medicinal purposes; spirulina, kale, herbs, and roots for smoothies; and protein powders for new nutrients and skin- and hair-lengthening collagen.
Middle East Feast
We’re going international, folks! In 2018, consumers are said to be looking more and more for the Middle Eastern flavors they know and love. Influences from the region can be seen in the insatiable need for traditional items, like hummus, pitas, and falafels. Now, however, consumers are wanting to get more than just their toes wet with exciting Middle Eastern spices. These adventurous customers are looking for the endless variety of spice-filled dishes hailing from the region’s cultures; spices like harissa, cardamon, and za’atar are making their way into the spotlight. Produce items like eggplant, pomegranate, cucumber, parsley, mint, tahini, tomato jam, and dried fruits are also ways to infuse foods with more of Middle Eastern flare.
Crunch Time
Pop, crunch, and crunch—OH MY! Crispy delights like popped cassava chips, puffed pasta bow ties, seaweed fava chips, and puffed rice clusters are becoming more popular. And, hooray! The indispensable chip has healthy options: soon-to-be fast-selling jicama, parsnip, and Brussels sprout versions. Break it down, STOP! It’s crunch time...
Thanks to the findings by experts employed by Whole Foods, these are just some ideas your business can use to capitalize on the incoming year’s trends. To see the rest, check out Whole Foods' website here, and to stay in-the-know, keep checking back with us at AndNowUKnow!
PASADENA, CA - Sweaters and blankets are not the only fuzzy things that are proving to be popular during the cooler months. However, unlike warmer clothing, kiwifruit brings sparks of tartness and sweetness to brighten cloudy days. Capitalizing on the holiday shopping season, retailers are having success showcasing California kiwifruit while it is in season, October through May, in holiday-themed packaging to tap into the seasonal cheer.
“The whole kiwi category is garnering more and more attention from retailers and consumers,” said Howard Nager, Vice President of Business Development, in a recent press release. “While kiwifruit may not produce huge volume for a retailer right now, they are finding they can drive incremental sales with very little effort, and we’re seeing the greatest volume with Mighties 2-pound clamshells.”
Mighties kiwi from Sun Pacific boasts of approximately 50 percent of the California kiwifruit production on the market. After shipment of the California-grown fuzzy fruit began the first week of October, grocers have been utilizing the consumer demand for healthy, holiday snack options to their advantage. Mighties have made their debut at many retailers in secondary locations throughout the produce aisle.
And, like the saying goes, teamwork makes the dream work, as can be seen in the marketing placement of Sun Pacific’s Mighties kiwifruit and the fan-favorite Cuties alongside each other. When the two are seen side-by-side, retailers have, according to the press release, shown a triple digit volume and dollars sales lift for Mighties. As is true of all well-suited partners who complement each other, Cuties also shone a little brighter to consumers because sales for the popular fruit reportedly also increased.
“We are doing a really good job of not only branding but education on this rising superfruit,” said Nager. “From health-conscious parents who want a vitamin-packed snack for their busy kids to foodies that love the flavor profile and color, Mighties is quickly becoming a staple produce purchase.”
There are no needed tricks for your consumer to use to make this holiday treat ripe on command because Sun Pacific pre-conditions its California kiwi crop so that it is ripe and ready-to-eat upon purchase. What makes Sun Pacific’s kiwifruit’s ripeness so unique is the company’s use of a proprietary process that ensures a consistently sweet, delicious flavor. This consequently eliminates guesswork for consumers, giving everyone peace-of-mind.
While the ripeness might be on point, your business might be asking, “How does Sun Pacific market towards all audiences?” Well, to make sure consumers know just how healthy and nutritious kiwifruit is, the company has packaged its produce to educate everyone who reads it about the benefits of kiwifruit indulgence. A spife, or a combination of a spoon and knife utensil, and the brand’s original cut, scoop, and eat messaging reinforce to families looking for healthy, holiday snack options that Mighties kiwifruit is available and ready-for-the-eatin’.
Sun Pacific reported that one-third of parents who have purchased Mighties, and more than 80 percent of children prefer the brand, so it must come as no surprise that Sun Pacific’s 40,000 acres of fruit in California has made the brand one of the largest growers of kiwi in North America. Plans to plant more kiwifruit are being made by Sun Pacific to keep up with retailer demand, with an expected growth of tripled kiwifruit crop and an estimated 70 percent of California’s kiwifruit production.
With so much growth on the horizon, stay tuned into AndNowUKnow, where we will continue to report on the latest fresh produce industry trends.
CARTAGENA, COLOMBIA – Fresh to the U.S. market and ready to impress, Mission Produce and Colombia-based Cartama have teamed up to bring avocados from Colombia into the United States for the first time ever. Working with grower and exporter Hasspacol, the first shipment is scheduled to arrive early this week in Port Everglades, Florida, making it the first Colombian fruit on U.S. soil.
“Being the first to import Colombian fruit to the U.S. reinforces Mission’s global footprint and leadership in the avocado category,” said Mission Senior Vice President of Global Sourcing Jim Donovan in a recent press release. “It’s crucial for Mission to capitalize on all available sources to serve our growing customer base. Our partnership with Cartama in Colombia has been in the works for a number of years, and when this opportunity finally came to fruition, we were ready.”
The first containers of Colombian avocados destined for the U.S. were loaded onto vessels at the Port of Cartagena on November 2, during a ceremony that included Colombian avocado growers and packers, Colombian Secretary of Agriculture Juan Guillermo Zuluago, Instituto Colombiano Agropecuario (ICA) officials, and a special message from the President of Colombia, Juan Manuel Santos.
“ICA is Colombia’s agriculture and food safety authority, and has been instrumental in developing the phytosanitary requirements for export to the U.S.,” said Cartama CEO Ricardo Uribe. “We worked closely with Emilio Arevalo, the Technical Director at ICA, and with APHIS, in assuring that the strict requirements of the export protocol were met and that all future farms adhere to this protocol.”
The fruit for the first arrival was grown by Hasspacol, and packed at Cartama’s facility in Pereira, Colombia, under the Mission and Hasspacol label. “I’m proud to be the first Colombian grower to supply the U.S. market. Proud for my company, my team, and my country,” said Commercial Director of Hasspacol Jose Luis Gonzalez. “We know we have high-quality fruit, and now everyone else will know, too.”
The first shipment sailed on a Hapag Lloyd service November 3, with delivery scheduled today, November 6. Once the shipment clears inspections it will be moved directly to Mission’s Atlanta forward distribution center for further inspection, before being delivered to the final customer.
Mission Vice President of Sales & Marketing Brent Scattini indicated that there is strong interest in Colombian fruit from a retailer perspective. “Since the announcement about Colombia being allowed into the U.S., we’ve had customers asking about it and several wanting to be the first to receive the fruit. We expect volume to build throughout the season as well as in years to come. Having an additional source, another option, is good for our customer base,” he said.
“Our customers expect us to be pioneers in the global avocado supply chain,” added Mission CEO Steve Barnard, affirming the opening of Colombia will have a positive impact on the U.S. market. “Our involvement in Colombia extends Mission’s footprint to yet another country and enhances our ability to serve our customers as this category continues to boom globally.”
Will the Colombian fruit alter the U.S. market for the better? AndNowUKnow will continue to report.