CINCINNATI, OH – Kroger started today with aplomb, announcing plans to create value for shareholders and focus on redefining the food and customer experience through digital and technology, expanding partnerships to create customer value, developing talent, and creating social impact. Perhaps the most compelling part of the company’s plan, though, may be the reevaluation and potential sale of Kroger’s various c-store banners.
"We know that when we serve America through food inspiration and uplift, we create value for our shareholders, customers, and associates," said Rodney McMullen, Chairman and CEO, in a press release. "We understand that today's marketplace is shifting rapidly. Kroger's success has always depended on our ability to proactively address changes by focusing relentlessly on our customers…Restock Kroger builds on our strengths and strategically repositions Kroger to accelerate our customer-centered efforts in order to create shareholder value."
With a new plan called the “Restock Kroger Plan,” the company outlined a slate of propositions fueled by capital investments, cost savings, and free cash flow.
The Restock Kroger plan is expected to generate $400 million in incremental operating margin by 2020, the company noted, and Kroger is purportedly planning to outline how it will prioritize its estimated $9 billion in capital investments to support Restock Kroger over the next three years. The company also noted that it expects to generate more than $4 billion of free cash flow over the next three years—nearly double what was generated over the previous three years
One major source of cash may be the sale of Kroger’s c-store division. In a section entitled “Exploring Strategic Alternatives for Convenience Store Business,” the company outlined plans that could result in the sale of 768 c-stores across 18 states and a variety of banners, including: Turkey Hill Minit Markets, Loaf 'N Jug, KwikShop, Tom Thumb, and QuickStop.
"Our convenience stores are strong, successful and growing with the potential to grow even more. We want to look at all options to ensure this part of the business is meeting its full potential. Considering the current premium multiples for convenience stores, we feel it is our obligation as a management team to undertake this review," said Mike Schlotman, Kroger's EVP and CFO. "Our convenience store management and associates are an important part of our success. They put our customer first every day. We value what they do and thank them for what they will continue to do as we conduct this evaluation."
Including fuel, the company noted, Kroger's convenience store business generated $4 billion in total sales last year.
Bloomberg and other financial news sources reported that Kroger’s stock jumped this morning, buoyed by the news of a c-store sale. Bloomberg also speculated that potential suitors for Kroger’s c-store division could include 7-Eleven Quebec-based Alimentation Couche-Tard, two of the largest North American c-store operators.
In addition, Kroger reaffirmed its 2017 guidance, including:
- Identical supermarket sales growth of 0.5 to 1.0%, excluding fuel, for the remainder of 2017
- Net earnings of $1.74 to $1.79 per diluted share, including an estimated $.09 for the 53rd week
- Adjusted net earnings of $2.00 to $2.05 per diluted share, including the 53rd week and excluding charges related to the withdrawal liability for certain multi-employer pension funds and a voluntary retirement offering (the "2017 adjustment items")
To view the entirety of the Restock Kroger Plan, click here.
Will a c-store sale bring ballast to the Ohio-based retailer as it vies with an Amazon-owned Whole Foods, a resurgent Walmart, and others? AndNowUKnow will continue to report.
BENTONVILLE, AR - Retail giant Walmart is predicting strong turnaround from the significant moves it has made to counteract Amazon on the e-commerce terf, having set a prediction of 40% growth in online sales next year. Shortly after, the stock market responded in kind with as much as a 4.5% boost, according to Reuters.
In the leadup to an annual investor meeting we reported on the unveiled intentions Walmart released about the growth projection, as well as plans to invest $11 billion in capital expenditures and add 1,000 online grocery locations.
“We are going to lean into places like technology, e-commerce, international stores,” Chief Financial Officer Brett Biggs said in the webcast of the meeting, Reuters noted.
Growth is also forecasted for overall net sales, according to the retailer. The meeting touched on a boost of at least 3% in the year ending January 2019, adding it would buy back $20 billion of its shares over the next two years.
Its shares rose 4.5 percent to close at $84.13, reported as the top driver of gains in the Dow Jones Industrial Average and S&P 500 index. As of this morning, shares were still up as the last week reflected the strong climb.
With reported growth of about 62% for the first half of fiscal 2018, up from 12% from a year ago, AndNowUKnow will continue to eye this and other big players in the dynamic buy-side market.
PHOENIX, AZ – Sprouts Farmers Market continues to spread its roots, this time expanding into new markets in the Sunshine State. The presses have barely cooled since the retailer announced that it was expanding Eastward amongst some of the nine new locations planned for 2018. Now, the chain has confirmed it will expand its Florida footprint by adding stores in Orlando, Naples, and the Tampa area.
“We knew residents’ interest in health and value would make Sprouts a natural fit for Floridians,” said Ted Frumkin, Chief Development Officer, in a press release. “We’re ramping up expansion efforts based on the strong performance of our Tampa and Sarasota stores, and positive customer response to the affordable fresh and natural products across the entire store.”
The Orlando area store will be its first in that market, set to open in Winter Park. Naples, too, will be a first for Sprouts, opening near the intersection of Immokalee Road and Logan Boulevard. Tampa is a market the brand has an increasing presence in; in addition to recently announced plans of opening a store in Valrico during the first quarter of 2018, the retailer opened three stores in Tampa and one in Sarasota earlier this year.
Sprouts attributed its rapid southeast expansion’s anchoring to a distribution center that opened in Atlanta last year.
Additional details, including opening dates for these sites, are said to be announced at a later date. You can see a full list of stores by region, or others coming soon, at sprouts.com/stores/search.
REIDSVILLE, GA – Shuman Produce has announced exciting plans for the 2017 PMA Fresh Summit—including chef demos featuring RealSweet® brand sweet onions and sweet potatoes and a festive Big Green Egg Giveaway. And this year, Shuman Produce is proudly celebrating 20 years of growing premium sweet onions in Peru.
The year-round grower and shipper of RealSweet onions has plans to showcase its Peruvian sweet onions, available to retailers during the fall and winter months. According to the company’s press release, the premium sweet onions are the product of Peru’s ideal combination of weather and sandy soils. Shuman Produce’s RealSweet Peruvian sweet onions maintain the taste, sweetness, and color consumers have come to expect from RealSweet Vidalia onions and maintain supply of the sweetest onions possible year-round.
Kevin Jenkins and Erik Holdo, also known as the personalities Chef & The Fat Man, will once again host live cooking demos featuring RealSweet Peruvian sweet onions and sweet potatoes at Shuman Produce’s booth #4237. These two culinary creators will, according to Shuman Produce, both entertain and provide delicious meal samples that highlight the company’s products.
This year, Shuman Produce also plans to highlight its RealSweet brand sweet potato crop. Harvested in Georgia in late-September, these sweet potatoes are expected to be available to retailers in time for Thanksgiving and will be available in both 40-lb. bulk options and consumer pack varieties.
PMA Fresh Summit attendees can also enter to win a Big Green Egg by visiting Shuman Produce’s booth. Big Green Egg is the highest-quality ceramic kamado-style charcoal grill and can be used as a smoker, oven, or grill. Lucky entrants who win will be able to enjoy RealSweet Peruvian sweet onions in a variety of ways with this perfect complement to tailgates and barbecues.
Attendees of the 2017 PMA Fresh Summit, held October 20-21 in New Orleans, Lousiania, are encouraged to stop and visit Shuman Produce at booth #4237—and visit realsweet.com for more on sweet onions.
FRANKLIN, TN - Could Carl’s Jr. be the next major food industry power player to be taken under Amazon’s wing? If the fast food company's latest online marketing campaign is to be taken at face value, Carl’s Jr. may be gunning for it. As of 3 AM ET on Monday, the fast food brand began tweeting at Amazon once every hour, offering up a few "billion dollar" ideas in an attempt to seduce the e-commerce giant into a buyout.
"This is about generating a conversation around a partnership,'' Jeff Jenkins, Chief Marketing Officer, Carl’s Jr. and Hardee’s, shared in an interview with USA TODAY. "The tweets are obviously a start to try and see where the dialogue goes…have a lot of fun with it, and see if they find the spirit of it as fun as we do.’’
According to USA Today, potential ideas Carl’s Jr. has been throwing at Amazon include a tongue-in-cheek "Eater Reader," a food tray that also serves as a cradle for your Amazon's Kindle tablet, and “Prime Thru,” an express drive through lane at Carl’s Jr. locations designed just for Amazon Prime members.
Carl’s Jr. has never been known for being shy with its marketing strategies in the past, making a name for itself though sexy ad spots in which scantily clad ladies enjoy one of the company’s signature messy burgers. But could this campaign actually lead to a deal?
Amazon is no stranger to attention in recent months, with many cities and companies alike courting the e-Commerce giant. For one, several cities have been going head-to-head to win rights to be the home of Amazon’s second headquarters, HQ2, which is projected to bring as many as 50,000 new jobs and insert billions of dollars into the local economy.
"We've got to be impossible to ignore,” Jenkins said of Carl’s Jr.’s Amazon marketing strategy. “Both Carls Jr. and [sister brand] Hardee's have a history of provocative advertising...The question is how do you modernize that.”
USA Today reports that Carl's Jr. plans to continue its tweet storm through the remainder of the week, preparing to offer up even more ideas, such as the "Tender Button" to get a chicken tender delivered straight to your door through Amazon.
"Some of the ideas are closer to home (to what) we could execute, but some are obviously pushing the envelope," Jenkins said. “People always overestimate what could happen in two years, and underestimate what will happen in ten.’’
Will you soon be ordering up burgers and fries from your local Prime Carl’s Jr. delivery location or scrolling through your Kindle with your new Carl’s Jr. fry stylus? AndNowUKnow will keep bringing you the latest.
LOS ANGELES, CA – As part of a strategic effort to expand into new fruit categories and support increased demand for existing business, Dulcinea Farms announced today the addition of three produce industry professionals to its Sales team, welcoming Christopher DeSana, Dan Carapella Jr, and Jeff Nichol to its already seasoned Sales organization.
“We are pleased to bring on these three industry veterans to support our growing supply base and customer demand,” General Manager Josh Leichter stated. “Christopher, Dan, and Jeff all bring track records of superior customer service in categories that align well with our current as well as future planned product lines.”
Christopher DeSana is taking on the position of East Coast Import Manager/Sales Manager. After graduating from Western Michigan University, Christopher served as an Account Executive at Sbrocco International, and more recently as Seald Sweet’s deciduous fruit manager.
“I have followed the growth of Pacific Trellis/Dulcinea over the years with some level of admiration and could not be more excited to join Josh and his team to build an even better future,” DeSana said about joining the group.
Dan Carapella Jr. is working as Salesperson in the New Jersey office, focusing on continuing to expand the company’s retail customer base as well as assist in the growth of newer categories like citrus, cherries, apples, and pears. Dan joined the fresh produce industry in 2004, after graduating from La Salle University, working as a Transportation Coordinator with Oppenheimer and following in his family’s footsteps of working with southern hemisphere imported produce. Most recently, he served as Sales and Marketing representative for Sbrocco International.
“The table grape program at Pacific Trellis is second to none, leading the way with many new varieties and sourcing from the growing areas preferred by supermarkets today,” explains Carapella. “In addition to the top-notch product, it was exciting to me to join a vertically integrated company that could offer retail partners truly direct year-round programs on table grapes.”
Jeff Nichol joined the company as Salesperson in the Los Angeles office and will focus on the Dulcinea melon business and supporting national retailers as well as the LA market area chains. After graduating from Cal Poly San Luis Obispo, Jeff spent time with The California Mushroom Farm and Tanimura & Antle before working at SOL in Sales and Business Development.
“I am excited to join the Dulcinea Farms sales team and look forward to the opportunity to represent their amazing product lines,” Nichol confirms.
Dulcinea Farms/Pacific Trellis Fruit’s addition of DeSana, Carapella Jr., and Nichol to the sales team will help deliver superior customer service, expand solid grower partnerships, and boost strong retail demand, according to a recent press release.
We look forward to Dulcinea Farms’ upcoming year! For more industry related news, AndNowUKnow will continue to report.
BALA CYNWYD, PA – You may have heard the phrase “Nature’s Candy” referring to beets before, but with Love Beets latest product, that phrase takes on new meaning. Introducing its new Honey and Vinegar Diced Golden Beets ahead of this year’s PMA, LoveBeets are taking flavor- and nutrient-rich golden beets and turning them into a delicious, versatile, and ready-to-eat product for sweet and savory food lovers alike.
“We’re delighted to present a long anticipated, golden beet to our product line, with a perfected recipe consisting of honey and vinegar marinade,” said George Shropshire, General Manager. “There has been a high demand for a golden beet offering since the beginning of Love Beets, and we are happy to provide a colorful, kid-friendly addition to our all natural, ready-to-eat beet products.”
What really gives Love Beets’ latest product its edge, however, is that the company has pre-diced its golden beets for simple and easy consumption, and with honey as the only added natural sweetener and vinegar to bring out its flavor, these value-added beets make for both a great stain-free alternative to red beets and a great substitute for candies for the kids. The golden beets are gluten-free with no added sugar, according to a press release, and pre-cut for consumers to make for a great “no mess, no fuss” ingredient or by-itself snack.
“As well as the remarkable yellow-gold color, golden beets are typically sweeter and less earthy–meaning more sweet and mellow than red beets,” added Daniel Cross, Managing Director of the company’s production facility. “Golden beets have all the great nutrition and health benefits of red beets, but bring their vibrant bright yellow-gold color to salads, roasted vegetables, burgers, hot dogs, smoothies, and more.”
Also like their relative, the red beet, golden beets contain betalain, otherwise know as betanin, a powerful antioxidant. But that just scratches the surface of what golden beets have to offer.
“Nutritionally, golden beets are very similar to red beets, and are packed with other antioxidants, potassium, and nitrate, which lower blood pressure,” Daniel continued. “Golden beets are low calorie, a great source of fiber, and have a lot of calcium. We're thrilled to launch another product that maintains our commitment to providing healthy and convenient items.”
And as the company looks to continue its pledge to high quality, Love Beets plans to continue harvesting golden beets from the western region of New York State. The New York harvest has already begun, and will continue locally through October. In the spring, Love Beets plans to keep its harvest of golden beets in the U.S., remaining in top choice growing states such as Texas, Georgia, and California.
Want to learn more about Love Beets and its entire line of convenience- and health-focused beet solutions? Attendees of PMA Fresh Summit can find the team at booth #4400, and be sure to check out www.lovebeets.com.
TABOR CITY, NC – Lipman Family Farms has announced a new partnership designed to expand the company’s reach and double down on its commitment to sustainability and high-quality farming. The company has partnered with North Carolina-based watermelon grower Table Fare Farms.
“We are very excited to partner with [Table Fare Owners] Larry and Tammy O’Ferrel,” said Scott Rush, Director of Lipman Local, in a press release. “Table Fare Farms will be a great addition to the Lipman family and will allow us to expand our local produce offerings to our customers.”
Under the terms of the agreement, Lipman will be the exclusive marketer for the farm. Lipman is currently affiliated with more than 50 local farmers in more than 20 states, and through its “Lipman Local” program, the company partners with growers across the country to bring its customers local, quality produce year-round.
“Working with Lipman is the ideal next step for us,” said Table Fare Farms Owner Larry O’Ferrel. “We are looking forward to a long and fruitful relationship.”
Lipman also noted in its press release that the company plans to expand this partnership to include other categories in the future.
For more on important produce partnerships, look to AndNowUKnow for breaking news.
BROCKTON, MA - As PMA Fresh Summit readies itself to deliver a flavor-packed produce punch to attendees coming into New Orleans later this month, Concord Foods is preparing a flavor punch of its own. The company is debuting its Fresh Success branded produce-focused seasoning line, all of which have been reformulated to include no artificial flavors, colors, or preservatives
“Concord Fresh Success is a line of seasoning mixes that boosts the flavor of fresh fruits and vegetables so that moms can delight their families with tasty variety,” Samantha McCaul, the company’s Marketing Manager tells me. “Our consumers are busy moms–they want to make vegetable dishes more interesting and flavorful, so their kids will be encouraged to eat more of them. With our mixes, consumers can easily make a variety of vegetable dishes that their families will love. They feel smart about the way they’re taking care of their family.”
Available starting mid-October, the Fresh Success seasoning line includes all of the mixes the company has been known for, but with a reformulated, more natural blend. The current product lineup includes:
- Guacamole Seasoning
- Salsa Seasoning
- Roasted Potato Seasoning
- Coleslaw
- Broccoli Soup Mix
- Onion Ring Batter
- And more!
And Samantha says this line will continue to grow and include other innovative mixes for flavoring both fresh fruits and vegetables.
Currently available in 18-pack cases and 144-pack shipper displays redesigned to include Concord Fresh Success signage, Samantha was happy to share some of her expert merchandising tips with me to make the most of Concord Fresh Express seasonings at retail.
“Its best to merchandise a Concord Fresh Success’ seasoning mix with its fresh companion item, such as Guacamole Mix with avocados. This is a great way to encourage cross-purchasing,” Samantha explains. “Our millennial consumers also really enjoy discovering unexpected recipes and uses for products/fresh items. This is an opportunity to create fun displays for seasonal recipes that will catch their attention. As example of an unexpected recipe, making corn chowder using our broccoli soup mix, or delicious, roasted Brussels sprouts with our Greens & Kale Seasoning Mix. We are also happy to provide recipes and signage support for these displays.”
In addition to our seasoning mixes, Concord Foods also launched a line of fruit and vegetable smoothie mixes rebranded as Concord Fresh Success. The smoothie mixes will be available for purchase in December 2017.
“We’ve received great feedback on both the products and packaging from retailers. Everyone is very excited about our fresh design and our ingredient updates, and we’ll also be supporting Concord Fresh Success’ sales with a consumer-facing public relations and social media effort,” Samantha adds. “In addition, we will be launching ConcordFreshSuccess.com in the coming weeks. This new website will be a great place for consumers to learn more about our products and discover recipe ideas.”
Want to check out the company’s seasonings and smoothie mixes for yourself? Visit Concord Foods at PMA booth #1345 and get your hands on this exciting new line.
BENTONVILLE, AR - As Walmart gears up to host its annual investment community meeting today, Walmart President and CEO Doug McMillon is preparing to announce some big strategic investments the company has planned for the fiscal 2018 and 2019. Including plans to invest $11 billion in capital expenditures, raise U.S. eCommerce growth by 40 percent, and add 1,000 online grocery locations, it looks like Walmart has big plans to prime the next few years for massive growth.
“We have good momentum in the business, we’re executing our strategy and moving with speed to win with the customer, who is more connected than ever and embracing tools that will save them both time and money,” McMillon shared in a statement ahead of the investment meeting. “We’re combining the accessibility of our stores with eCommerce to provide new and exciting ways for customers to shop. I’m proud of the team we have in place, the work we have underway and how we are positioned for success in the future.”
In the retailer’s pre-meeting news release, Walmart highlighted several new strategic plans the company plans to implement going forward, including its U.S. division’s goal to continue to prioritize store remodels and digital experiences over new stores.
This investment in digital experiences will likely include enhanced supply chain capabilities, more fulfillment capabilities, and an $11 billion capital expenditure budget for fiscal years 2018 and 2019. Other highlights from the company’s release include:
- Expectancy to grow consolidated net sales at or above 3 percent
- Anticipation of sales growth at Walmart U.S. eCommerce to be about 40 percent
- Expectancy to add 1,000 online grocery locations in Walmart U.S.
- Expectancy for effective tax rate to be approximately 32.5 percent
- Global unit growth of approximately 280 for each of the fiscal years 2018 and 2019
- Walmart U.S. expects fewer than 15 new Supercenters and 10 Neighborhood Markets in fiscal year 2019
- Walmart International expects approximately 255 new stores with a focus in Mexico and China
At the meeting, Walmart CFO Brett Biggs will also be discussing financial projections. Biggs commented, “We feel good about where we are as a company. Our plans are designed to win with both customers and shareholders as we operate within our financial framework. Our financial position is strong, which allows us to invest in the business while returning significant cash to shareholders.”
With big, headline-grabbing numbers such as $11 billion investments and 1,000 new locations, will Walmart’s new moves be enough to keep its position near the top of the retail food chain? AndNowUKnow will continue to follow this and other major moves in grocery.