IRVINE, CA - For many members of the produce industry, January 1st, 2018 will not only bring cause to celebrate the New Year, but also cause to take a look at the changing minimum wage laws that may affect their businesses. In an effort to educate members of Western Growers, the Association’s Vice President & General Counsel Jason Resnick compiled a list of legislation that will affect employers in California, Arizona, and Colorado starting next month.
"With annual minimum wage increases, the erosion of the agricultural overtime exemption [in California], rising healthcare and workers’ compensation costs, and expanding regulatory burdens, many farmers are finding it increasingly difficult to compete with other states and other countries," Resnick tells me. "Farmers are price takers, not price setters—they can’t raise their prices to cover significantly higher employment and regulatory costs."
Below is Resnick's breakdown of how the minimum wage laws will affect Western Growers members in the following states:
California
In 2016, SB 3 was signed to gradually increase the minimum wage in California to $15 per hour by 2022. Beginning January 1, 2018, employers with 26 or more employees will be required to pay non-overtime-exempt employees $11.00 per hour while businesses with 25 or fewer employees will have to pay their non-exempt employees $10.50 per hour.
The increased minimum wage rate also impacts the salary thresholds for exempt executives, administrators and professionals under California law, increasing it to $45,760 annually for employers with at least 26 employees, and $43,680 for employers with 25 or fewer employees. Employers should also be aware that a number of cities, such as San Francisco, Emeryville, and Oakland have higher minimum wage rates than the state.
Arizona
Under Proposition 206, the Fair Wages and Healthy Families Act, Arizona’s minimum wage will increase to $10.50 per hour on January 1, 2018; $11.00 per hour in 2019; and $12.00 per hour in 2020. In 2021, the Arizona minimum wage will increase each year by the cost of living.
Colorado
With the passage of Amendment 70, effective January 1, 2017, Colorado's minimum wage had been increased to $9.30 per hour and is increased annually by $0.90 each January 1 until it reaches $12 per hour effective January 2020. Thereafter, it will be adjusted annually for cost of living increases, as measured by the Consumer Price Index used for Colorado. For 2018, the minimum wage in Colorado is $10.20.
New Mexico
The minimum wage in New Mexico remains $7.50 per hour, which is greater than the federal minimum wage of $7.25. Some cities and municipalities in New Mexico have established their own minimum wage rates, including:
- Albuquerque: $8.75
- Bernalillo County: $8.65
- Santa Fe: $10.84
- Santa Fe County: $10.66
- Las Cruces: currently $9.20 to increase to $10.10 on January 1, 2019
As the country continues to look towards new legislation and regulation regarding wages, AndNowUKnow will continue to report on the shifting agricultural landscape. Until then, visit Western Growers' website to learn even more about all issues in Ag.
CAMARILLO, CA – On the sixth day of Christmas, Houweling’s Group said to me... It is closing out 2017 on a good note by welcoming Todd Plaxton to its Sales Management team. Now, that's the kind of holiday carol I like to celebrate!
“Todd brings the skillset, dedication, and drive that is required in our industry. His experience within the greenhouse sector enables him to hit the ground running, while also bringing a solid business approach,” said Mike Reed, the company’s EVP Sales, in a recent press release.
Plaxton’s experience is wide-ranging, having held positions at blue chip organizations outside of the industry at Nestle Foods, and at produce industry organizations such as Star Produce and The Oppenheimer Group. With so much telling experience, Plaxton is jumping into his new position with both feet.
“I have always had a tremendous respect for Houweling’s, and their reputation in the industry as an innovator and quality grower. At the same time, the company has evolved with the changing retail landscape. Major retailers continue to adjust and address their supply chain, favoring a direct relationship with growers. Houweling’s has done a tremendous job at fostering these retail relationships, and I look forward to building on the upward trend with my accounts,” said Plaxton in the same press release. “Service is critical in this business. I advocate for my customers and ensure I am proactive to address issues well before they ever appear on my customer’s radar. While it sounds simple, this business isn’t. Constant care and attention is needed to deliver first-time customer service.”
Not only is Houweling’s excited to bring Plaxton on deck, but it sounds like Plaxton is off to the races in his efforts to further establish customer satisfaction by addressing consumers’ needs attentively. With the addition of Plaxton to the sales management family, we at AndNowUKnow wish Houweling’s Group and its over 200 acres of greenhouse farms every success the industry has to offer.
BENTONVILLE, AR – What’s in a name? For Walmart Inc., the retailer formerly known as Wal-Mart Stores, Inc., a lot is at stake in it. The chain announced plans to change the company’s legal name to one word, without the dash or the “Stores” in tow. By shifting the name’s direction, the company is hoping to reflect its focus on streamlining customers’ in-store, online, mobile device, pick-up, and delivery experiences.
“Our customers know us as Walmart and today they shop with us not only in our stores, but online and with our app as well,” said Doug McMillon, Walmart president and CEO, in a recent press release from the retailer. “While our legal name is used in a limited number of places, we felt it was best to have a name that was consistent with the idea that you can shop us however you like as a customer. Looking ahead, we’ll continue to invest in and strengthen our stores around the world and expand our eCommerce capabilities as we help save customers’ time and money. As time goes on, customers will increasingly just think of and see one Walmart.”
Walmart is the umbrella company for nearly 60 different banners located throughout the world. Some of these include eCommerce sites, while others account for more than 11,600 stores and clubs within its 28-country reach. Walmart launched its first international location in Mexico City in 1991, and introduced Walmart.com in 2000.
Wal-Mart, Inc. was the launching point for the company, which registered under this name in 1969, before incorporating the “Stores” at the end of its title in 1970. The name has not legally changed since 1970’s transition, but the organization has been using its current Walmart logo for its operations and services since June of 2008. While the change might throw some loyal customers off at first, consumers and investors can rest assured that the company will continue to trade on the NYSE as WMT and the company’s name should reflect "Walmart."
Will the retailer’s newly rebranded name pay off in the long haul, continuing to launch sales upward and promote its innovative industry prowess? AndNowUKnow will continue to report with the latest.
WATSONVILLE, CA – Celebrating its fifth annual event and its continuing mission to bring salad bars to schools around the country, The California Giant Foundation’s Tour de Fresh has announced that 2018 sponsorship opportunities are now available.
“This year is a huge milestone for us as we celebrate five years of successfully providing access to fresh fruits and vegetables for thousands of students across the country,” said Cindy Jewell, Vice President of Marketing for California Giant Berry Farms, in a Tour de Fresh press release. “We’ve seen how impactful it can be when companies and individuals within the industry come together with a common purpose. I’m confident that this year will be our most successful yet, as we’ve been able to grow every year since the event’s inception.”
The event’s press release noted that this year’s ride successfully sponsored 47 salad bars—placed in schools this fall. And in 2018, Tour de Fresh says it is committed to offering a wide variety of sponsorships to companies within the fresh produce industry—as well as affiliated industries—in order to reach the event’s goal of donating over 50 salad bars to schools across the U.S.
2018 Tour de Fresh sponsorship packages offer companies year-round marketing opportunities, media exposure, and customized benefits based on sponsorship level. Last year’s sponsors were reportedly included in more than 320 media placements in trade and consumer publications and earned more than 115 million total impressions.
“We’re proud to be a premier sponsor for another year with Tour de Fresh. The event aligns directly with our values at Mission Produce to work as a community to support education, nutrition, and local outreach,” noted Robb Bertels, Vice President of Marketing for Mission Produce. “Our team gets so excited to participate each year that we’ve had to start raffling off rider spots!”
This year’s Tour de Fresh event will involve a four-day ride beginning in Kirkwood Ski Resort near Lake Tahoe on July 22 and ending in Monterey, CA on July 26—just prior to the PMA Foodservice Conference. Tour de Fresh noted that the event provides both significant sponsorship and fundraising opportunities for companies to engage directly with a cause that they are passionate about and provides a forum for friends and colleagues within the industry together for a little fun before the popular conference.
To build on the Salad Bars to Schools program this year and in the future, the United Fresh Start Foundation’s salad bar campaign and Tour de Fresh support will ensure fresh lunch options continue to be readily available to the next generation.
Opportunities to join confirmed sponsors such as Americold, California Giant Berry Farms, Coosemans Worldwide, Fight Like a Girl Foundation, JAZZ Apple, Mission Produce, Okanagan Specialty Fruits, Pajaro Valley Fresh, PMA, and Tanimura & Antle are now available.
For more information about the Tour de Fresh, interested parties are encouraged to visit http://www.tourdefresh.com/ or contact the Tour de Fresh team directly at [email protected].
GRANITE BAY, CA – After more than 9 months of user research and web development, Joe Produce has launched its new website “Joe 2.0.” The culmination of working with thousands of produce companies and many more thousands of site-users over the past six years, Joe 2.0 is the first major revision in the company’s history, and the meticulous, detailed site has been met with positive feedback from employers and job seekers alike.
“This is a giant step for us in terms of changing our website. It’s one thing to change an information-based site, but when your site is your main customer interface, it’s all that much more serious” said Joe Produce’s President Rex Lawrence, in a press release. “After we received the high scores from our last focus group, we knew that it was time to launch. I could not be happier! It's now an ongoing process of refinement and adding greater value as we move forward.”
JoeProduce.com is now faster, cleaner, and easier to use, overall enhancing and bettering user experience. Instead of approaching the site like a job board, the team focused on creating a job store, emphasizing philosophy and strategy in order to add value for the company’s clients and job seekers.
“In the days, weeks, and months to come, visitors will see new features and refinement that will make their experience progressively better,” added Lawrence.
Some notable changes include:
- New, user-friendly homepage that Includes the Quick Check Features: Latest Jobs, Jobs By Location, and Featured Jobs
- Featured Jobs are enhanced job ads that can be found throughout the site
- Larger font and enhanced readability throughout the site
- Popular Produce Areas, a new category, ranging from Salinas to Yakima and more, each have their own page now
- A new “Search” page, with a wide selection of options to search narrowly and/or by various categories
- Enhanced Company Profile pages and Job Description pages
- Easier access to JoeProResumes.com—the resume writing service—and Joe Produce Search—the executive recruiting division
- The ability to submit a confidential resume directly to us is now even easier
- FAQs for both Job Seekers and Employers is easier to find and read
The new and completely redesigned website now offers companies the enhanced ability to market their jobs, as well as provides more ways for job seekers to find that special job. To see the redesign yourself, visit www.joeproduce.com.
For more produce industry news, stick with us at AndNowUKnow.
LAREDO, TX – We all love avocados, so it is a shock to the heart when we hear of them being used in any fashion other than our favorite dips or add-ons. With that being said, a 2000 Freightliner tractor trailer chauffeuring a frozen avocado pulp shipment through its second inspection was harboring 3,003 packages of alleged marijuana on Wednesday, November 29th. U.S. Customs and Border Control (CBP) officers at the Laredo Port of Entry reported that the packages weighed in at a grand total of 4,739 pounds.
“Our CBP officers face many challenges daily while facilitating lawful trade,” said Alberto Flores, Port Director at Laredo Port of Entry, in a recent press release from the organization. “CBP’s layers of enforcement such as the non-intrusive imaging system, canine, and the officer’s experience play an important role in the intercepting of these dangerous narcotics.”
Here’s how it happened: a CBP officer at World Trade Bridge sent the tractor trailer to a secondary inspection, and upon further probing of the shipment, CBP officers discovered the smuggled alleged drug packages by using the non-intrusive imaging system and canines.
This isn’t the only drug bust the week has to offer. December 2nd brought in an alleged cocaine bust; the combined total value of both attempts is $1,357,854. Both cases have since been sent to U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HIS) for special agents to further investigate.
A big thanks goes to CBP as it takes a bite out of crime so we can bite into our beloved guacamole.
MISSION, TX – With its new brand, Lone Star Citrus Growers is tackling misperceptions about grapefruit, elevating the category and educating consumers while expanding seasonality through its Winter Sweetz brand.
To find out more about Winter Sweetz, I spoke to April Flowers, Marketing Director for Lone Star Citrus, to learn more about the grapefruit category, the unique character of winter grapefruit, and the growing opportunities to turn young consumers onto the sweet citrus treat.
“When we look at seasonality, winter grapefruit has a slightly different taste profile from summer grapefruit,” April explains. “So we knew if we could take seasonality into the picture, that would be very, very helpful.”
With its new Winter Sweetz brand, Lone Star Citrus is hard at work showing consumers that grapefruit is more than pith, peel, and tang, regardless of season; it’s a sweet, flavorful citrus offering, agreeable to many different palates. And to this end, the company has integrated “segmenting” into its various consumer marketing campaigns—showing consumers that they can cut the fruit away from the albedo for a perfectly sweet bite of grapefruit.
“We have launched many many PR campaigns. We work with food bloggers; we are very active on social media and even inbound marketing to really try to feed the consumer many, many recipe options,” notes April. “We know that if we can show them segments that are outside of that pith and peel which create that tangy taste that some people don’t like, we can give them a flavor that’s going to be more agreeable to most…It’s an exciting flavor, and when it’s brought to a recipe that’s just okay, it elevates it to the next level.”
With a brand identity and consumer campaigns that appeal to grapefruit enthusiasts and skeptics alike, Winter Sweetz is primed to hook consumers on grapefruit and keep them coming back for more.
“Branding obviously helps the consumer come back and say ‘that’s the one I had last time; I know it’s going to be good again,’” April says.
For more, check out our complete video interview above.
And for more goings-on in fresh produce, check in with us at AndNowUKnow.
SANTA PAULA, CA - Limoneira is bringing on a new chief exec to handle its finances, promoting Mark Palamountain to the role of Chief Financial Officer, Treasurer, and Corporate Secretary. Effective January 8, 2018, Palamountain will fill the position held previously by Joe Rumley who announced his decision to pursue other opportunities on September 26th after serving in this role since 2010.
“I look forward to leveraging my capital markets and operational experience to continue building upon Limoneira’s strong heritage in the citrus industry,” Palamountain commented upon his appointment. “Over the past number of years, our team has put the elements in place to significantly grow our agribusiness operations in the coming years, following a series of investments in new orchards and infrastructure. I look forward to the opportunities that are ahead for Limoneira and our long-term shareholders.”
Palamountain has been with Limoneira since 2012, most recently serving as Senior Director of Agriculture Operations. In his time with the company, Palamountain has been instrumental in building and managing “a deep pipeline of acquisition activities,” Limoneira says, and successfully acquired over 3,000 new acres, created and implemented Limoneira’s “Net Zero” renewable energy portfolio expansion, managed capital growth strategies and acreage redevelopment activities, and worked directly in all investor relations-related activities.
“We are excited about Mark’s transition to the role of Chief Financial Officer and would like to thank Joe for his work in establishing a strong financial reporting infrastructure at Limoneira,” shared Harold Edwards, the company’s President and Chief Executive Officer in a press release. “Mark has been a valued member of our leadership team in his nearly six years with the Company, leading our business development efforts and renewable energy initiatives, as well as managing our agriculture operations. Combined with his background in capital markets, he will be well suited to execute the Company’s capital allocation framework and ensure we are maximizing value for shareholders.”
Before joining the Limoneira team, Palamountain was a CEO and Founder of Perpetual Power LLC, a solar integration company specializing in finance and product technology. In addition to this role, he served as a Managing Director, Head of Nasdaq trading for Broadpoint Securities from 2003 to 2008, where he was responsible for all trading desk management functions for a team of 25 traders. Between 2001 and 2003, Palamountain was Principal at Thomas Weisel Partners, and from 1997 to 2001, he was a trader with JPMorgan Chase.
Congrats to Palamountain on this next big step forward in your career, and here’s to more success with Limoneira!
AUSTIN, TX – Amazon’s acquisition of Whole Foods was the talk of the town earlier this year, and even more so after price-cuts were highly-publicized, easing the duo’s transition and luring in new customers for the grocer. According to analysis by the research firm Gordon Haskett, however, Whole Foods’ prices are back on the rise. The firm price checked over 110 items at a Whole Foods Store in Princeton, New Jersey, and found that the average price increase of each item was about 1.6 percent, according to a Business Insider report.
The current rise puts prices back to almost the same numbers they were at before the Amazon acquisition, with prices just 1.1% lower than what they were. While most of the latest price increases affected dry, packaged goods, the firm also reported there were some price cuts in fresh produce. Their findings include:
- Prices of produce fell 4.9%
- Prices of snack foods rose 5.2%
- Prices of dry grocery rose 2.5%
- Prices of beverages and bakery rose 1.3% each
- Prices of frozen goods rose 1.3%
“The findings are surprising, given the myriad of positive press around Amazon’s price cuts at Whole Foods since the acquisition. Whole Foods will have to keep offering lower prices if it wants to keep new shoppers around,” wrote Gordon Haskett analyst Chuck Grom, according to Business Insider.
With Amazon facing off against competitors in a retail stand-off, how will Whole Foods’ increased prices affect its position as current top dog? AndNowUKnow will continue to report.
WENATCHEE, WA - Another edition of Stemilt’s Fruit Tracker Fast Facts is here, and data shows clearly that apple season has arrived! With the apple category’s total contribution to the average U.S. produce department jumping an entire percentage point—from 5.9 to 6.9 percent—in just one month’s time, the slow start to Washington State’s apple harvest doesn’t seem to be making too much of an impact for overall apple dollars.
“October is National Apple Month, and the latest set of Nielsen retail scan data tells us that retailers definitely got behind the celebration, even though the later harvest in Washington State delayed promotions for a few key varieties,” said Brianna Shales, Stemilt Communications Manager. “Though we are lagging on performance from October 2016, when apples harvested in Washington State earlier than ever before, apples were retailing at higher prices year-over-year, led by higher volumes of the high-priced Honeycrisp apple.”
According to a press release, Honeycrisp apples were hot in October, trailing only Gala in terms of volume sold, and was also the top variety when it came to dollars sold. Honeycrisp accounted for 27.7 percent of apple dollars due to its $2.48 per pound average retail price. Overall, Fuji, Granny Smith, and Red Delicious rounded out the month’s top five apple varieties.
“It’s clear that Honeycrisp is the sought after apple, and retailers must continue to dedicate space and promotions towards this shopper favorite,” advised Shales. “That being said, it can’t be the only apple promoted as there are many shoppers looking for a value. Running multiple apple varieties on promotion, in a price range that fits every shopper, is the best way to keep your apple category healthy.”
Further date showes that SweeTango® was the top club apple variety for October 2017, showing a volume increase of 10.9 percent over last October. Like Honeycrisp, SweeTango® enjoyed a high average retail price at $2.22 per pound.
When looking regionally, the Central region took a majority's share, topping the national average at 8.2 percent of total produce department dollars. The East met the national average at 6.9 percent, while the West and South regions was just short. All regions were down in apple dollars from last October due to the later Washington State crop.
Bagged apples are once again showing growth in sales, with the percentage of apples sold in bags up nearly 3 percent over last October, and accounting for 35.8 percent of apple sales. Stemilt shared that this can be attributed to an increase of smaller-sized apples from Washington State, as well as typical bag supplies from other regions. The average retail price for bags in October 2017 was $1.45 per pound, up 7 cents from last year. The average price for bulk apples in October 2017 was $1.71 per pound, just 5 cents higher than last year.
“With apples from Washington State one to two sizes smaller on average when compared to last year, its great to see retailers put more emphasis on bags this early in the season. The higher retail price on bulk fruit will likely remain this year, and the opportunities for promotion will be centered on bags in order to drive more volume through the register,” said Shales.
All in all, three and five pound bags continued to be the dominant package sizes, Stemilt added, with a combined 75 percent of bag volume and 71 percent of bag dollars. The volume of two-pound bags rose from last year, but average retails for two pound bags dropped 13 percent, or by 30 cents. If this trend continues, Brianna warns, it could cause deflation in volume and dollars across the category as time goes on.
“With tighter supplies on bulk fruit and the need to make up volume with bags, now is not the time to move down a size on bags,” finished Shales. “The three pound size matches well with the volume your once-a-week shopper would need, while five pound bags bring additional value to your category. Keeping the pedal down on Lil Snappers® 3lb. kid-size apple promotions, as well as Stemilt’s Apple Lover 5lb. bags is important as we look towards the New Year when healthy eating is top-of-mind for all shoppers.”
Want to see all these fruit facts in video form? Check out Stemilt’s Fruit Tracker Fast Facts above!