BERLIN, GERMANY – After eyeing the Frankfurt Stock Exchange and planning for an initial public offering (IPO) earlier last month, German meal-kit delivery service HelloFresh has officially gone public, and rivals be warned, the venture wasn’t a flop despite pulling the plug on this same plan back in 2015. On its first day of public trading, Fortune reported HelloFresh gained as much as 4%, valuing it at more than double U.S.-based rival Blue Apron.
Initially trading at a 10.25 euro price on Wednesday, trading increased by 3% on Thursday as numbers rose to 10.56 euros, according to a report by Business Insider. After selling 31 million new shares in an IPO, HelloFresh is now valued at 1.7 billion euros at current prices – more than double the 763-million-euro market capitalization of Blue Apron.
Despite its European origins, HelloFresh has enjoyed skyrocketing growth in the U.S., which is its largest market by a wide margin and accounts for 60% of its revenue. HelloFresh’s IPO prospectus showed U.S. sales doubling to 263.4 million euros during the first six months of this year while non-U.S. sales only rose 8% to 172 million euros.
Since founded in Berlin six years ago, HelloFresh has spent one-quarter of its expenses on marketing costs according to financial filings. Selling the concept of delivering pre-packaged ingredients to make home cooking more accessible, the meal kit company has in recent years narrowed its losses and pledged to break even on operating profit level within 15 months.
With HelloFresh thriving, Fortune reports comparable shares in Blue Apron suffering a 50% drop since its own IPO in late June, overall struggling financially this year if its 6% cut of jobs in a company-wide realignment is anything to go by.
With behemoth rivals like Amazon, who acquired Whole Foods, Albertsons, who recently acquired delivery meal-kit service Plated, and Walmart who announced joining the meal kit craze starting December, will HelloFresh continue to be a strong competitor? AndNowUKnow will continue to report.
FISHERS, NY - Partnering up for the 20th year, the New York Apple Association (NYAA) and the TCS New York City Marathon will be providing New York-grown apples to participants in the annual event. The crunchy snack will be given away at the marathon’s finish line, at several related events, and to race volunteers by the dream team. NYAA is set to bring a whopping 81,840 locally grown apples for the marathon and sponsor 15 runners, some of which are members of the Rochester, NY, area police and fire departments.
“Apples are an iconic New York fruit, and the marathon is an iconic New York event. This is a match made in heaven–we are thrilled to have the opportunity to be a continued sponsor of this event,” said NYAA President Cynthia Haskins, in a recent press release.
As it is the premier event for the New York Road Runners, over 50,000 runners from all over the world will be hitting the streets to participate in the marathon this Sunday, November 5th. NYAA is showcasing the state’s apples, which are more than just sentimental; the well-established partnership offers apples that are from a local source and logical choice for carbohydrates and fiber for added energy, as well as fluid for hydration. NYAA’s apples are a way to help the runners’ exercise throughout the race.
“New York state really is the Big Apple,” added Haskins. “Our state grows more apples than any other state east of the Mississippi River. New York state also has the perfect climate and geography for growing apples, and that shows in the flavor and quality of the fruit. Race participants will enjoy the best-tasting apples in the country, hand-picked right in their backyard!”
Runners will be biting into NYAA's apples and marketing. The slogan “Health to the Core” is being promoted on NYAA advertisements in the marathon’s official program, Runner Recovery Bag presented by the Hospital for Special Surgery that is received by all runners, wayfinding towers in the marathon’s start village, and 2017’s TCS New York City Marathon Official Results Magazine. On top of the advertisements, which will be seen throughout the event, NYAA will be providing 5-second public announcements at the marathon expo, which is presented by New Balance.
NYAA is on its mark, its set, and its going to ensure that the sponsorship will reach as many audiences as possible. It will be using a marketing technique to target both traditional and new media outreach options. Included in the Association’s sponsorship are local TV advertisements that will be run leading up to and during the major sporting event. With more than 30,000 followers on Facebook, NYAA will be capitalizing on new media platforms about its sponsorship role.
Good luck to all of the runners who have made training for this marathon the apple of their eye!
For more news on the New York Apple Association and the fresh produce industry, stay tuned into AndNowUKnow!
LOS ALAMITOS, CA – Frieda’s Specialty Produce is offering vibrant ideas to bring some flair to the holiday table and help retailers drive produce sales this fall with the company’s Stokes Purple® sweet potatoes.
“Our retail partners say the best time of year to promote Stokes Purple® sweet potatoes is the weeks leading up to Thanksgiving,” said Alex Jackson Berkley, Senior Account Manager at Frieda’s Specialty Produce. “With sweet potatoes remaining a trendy and staple produce item, and shoppers looking to add color to the Thanksgiving table, Stokes Purple sweet potatoes will sell out for the holiday.”
The specialty produce provider noted, in a press release, that these Instagram-famous spuds can add some spice to a produce display or a Thanksgiving feast, and other purple produce offerings like purple cauliflower, purple asparagus, baby purple potatoes, and radicchio can perk up the holiday’s traditional brown-to-orange turkey-scape.
“Conventional Stokes Purple sweet potatoes can be merchandised with other sweet potatoes, and the organic ones can be in the organic section,” said Berkley. “Purple deserves a place at the holiday table.”
Frieda’s also offers a variety of other popular holiday items, including fingerling and baby potatoes, Frieda’s Star Spangled Spuds, ginger, shallots, blood oranges, Fuyu persimmons, and Green Dragon apples.
For more on ways to differentiate and drive sales this holiday season, look to AndNowUKnow.
PHOENIX, AZ - Sprouts Famers Market reported another strong financial quarter today, showing a 16% increase in Q3 2017 sales over last year, due, in part, from a strong showing in the produce department. As a result, the retailer increased its estimates for 2017 across the majority of its financial goalposts, including net sales, comparable store sales growth, and diluted earnings per share.
“Sales were strong across all departments, while inflation was muted and ended flat for the third quarter. The momentum in our non-perishable departments continued, and our produce department benefited from a very strong growing season this year,” said CEO Amin Maredia in a call with the company’s investors.
The boost in produce department looks to come as a surprise for the company, and may have influenced the increased outlook for its total 2017 finances. CFO Bradley Lukow added, “In the third quarter, we did have a benefit from a very strong produce growing season that we would not anticipate in the ordinary course to exist in the fourth quarter, which is traditionally a seasonally less robust produce period.”
In total, net sales for Q3 of 2017 were $1.2 billion, a 16% increase compared to the same period in 2016. Net income for the quarter was $31 million, a 32% increase compared to net income for the same period in 2016. Diluted earnings per share was $0.23, an increase of $0.07 or 44%, as compared to diluted earnings per share of $0.16 for the same period in 2016.
“Sprouts is pleased to report strong top-line growth and demonstrate our ability to leverage those sales into exceptional earnings growth for the quarter. Sprouts’ hallmark of fresh, healthy, affordable products continues to resonate with our customers and positions us as a leader in the industry,” Maredia said in a statement. “We’ll continue to accelerate strategic priorities that will enhance our business–from product assortment to the digital experience to customer service. These, coupled with our technology investments to drive efficiencies, will provide the flexibility to make future investments where needed to ensure Sprouts is well-positioned for the future.”
As mentioned above, this strong quarter was motivation for Sprouts to update its guidance, and, according to a press release, the new outlook is as follow for 2017:
- Net sales growth: 14.5% to 15%, up from 13% to 14% prior
- Comparable store sales growth: 2.5% to 3.0%, up from 1.5% to 2.0% prior
- Diluted earnings per share: $0.98 to $0.99, up from $0.88 to $0.92 prior
- Capital expenditures: Approximately $170M, up from $155M to $165M prior
To learn more details about Sprouts’ full quarter, you can read the retailer’s press release here. And until next quarter, keep checking back with AndNowUKnow for the latest updates.
LOS ANGELES, CA – As more and more consumers become accustomed to food delivery, delivery companies are looking for ways to cut costs, increase profits, and expand offerings to gain an edge on the competition. One such company is DoorDash. The popular delivery app is now offering its customers cuisine from delivery-only “virtual” restaurants—commissaries where chefs can skip the service and offer dishes directly through DoorDash.
A Reuter’s report describes the new pilot DoorDash Kitchens —in which restauranteurs lease kitchen space directly from the delivery service—as a way to “cut costs on labor and rent while adapting to fast-changing consumer tastes and demands in a highly-competitive market.”
The virtual restaurant model is not new, though DoorDash is one of the more prominent adopters of the model. Culinary news source Eater notes that U.K.-based Deliveroo has been employing virtual restaurants for some time now, as have U.S.-based startups Munchery and Momofuku Owner David Chang’s recently-launched delivery-only restaurant Ando.
And DoorDash competitor GrubHub, who Reuters described as the “delivery leader,” has reportedly invested in Green Summit Group—a privately held company that operates virtual restaurants in New York and Chicago, but the company’s COO Stan Chia told Reuters that Grub Hub doesn’t plan on adopting the model anytime soon.
Will virtual restaurants raise the profile of door-to-door delivery, and how will this effect the future of fresh? AndNowUKnow will continue to report.
PULLACH, GERMANY - Since IFCO's 1992 founding, the company’s Reusable Plastic Containers (RPCs) have generated supply chain savings in the amount of $5.2 billion.
“IFCO RPCs have inherent attributes that make them the ideal choice for packaging, transporting, storing and displaying fresh food,” said CEO Wolfgang Orgeldinger in a recent press release. “This impressive data confirms our shared and reusable business model benefits our customers and helps make the world a better place at the same time.”
What is helping to fatten customers’ wallets? Reduced labor and handling costs, reduced product damage rates and equipment, space, and transport efficiencies provided by using RPCs versus one-way packaging have all been major contributors to the cost-savings.
The company’s RPCs have been utilized on 9.5 billion trips since the company’s beginnings, which led to labor and handling savings of over $1.1 billion, a reduction of damaged products that shows a $3.6 billion savings when compared with one-way packaging. Further, RPCs generated $605 million in savings from equipment space and transport efficiencies.
“RPCs are the fastest type of fresh produce packaging because forward-thinking retailers and growers understand they are more efficient, cost-effective and sustainable. We look forward to working with our value chain partners for another 25 years and beyond to build a better supply chain,” said Orgeldinger.
IFCO is celebrating its 25th anniversary throughout 2017 with announcements of the company's successes, events, and a 25,000 € donation to food banks throughout Europe and North America.
According to the press release, additional research shows:
- RPCs are a more effective method for replenishing fresh produce versus cardboard boxes. The study showed RPCs are six times faster for apples and five times faster for peppers, confirming the critical role RPCs play in reducing labor costs.
- IFCO RPCs have had a positive impact on the environment. Over the past 25 years, they have:
- Eliminated 3.4 billion kg of CO2 emissions, the equivalent of removing nearly 500,000 cars from the roads.
- Prevented more than 951,000 metric tonnes of solid waste, enough to fill approximately 104,000 dump trucks.
- Reduced water consumption by 43 billion litres (11 billion gallons).
- Saved 317,982 metric tonnes of produce from damage and waste.
Congratulations IFCO! For more fresh produce news, check back with us at AndNowUKnow.
LAKELAND, FL - Publix is closing out the third quarter of its fiscal 2017 on a strong note, with boosted sales and stock price. Part of the impact, according President and CEO Todd Jones, is from Hurricane Irma, which hit the company’s Florida home earlier this fall.
“We have faced many hurricanes in our past, but none with the size and impact of Hurricane Irma,” said Jones in the financial release. “I could not be more proud of our associates for their passionate service to our customers before and after the hurricane.”
In addition to a 6.2% increase from the same time last year’s quarterly sales, from $8 billion to $8.5 billion, comparable-store sales for the third quarter of 2017 increased 4.3%.
Highlights from the statement included:
- Net earnings for the third quarter of 2017 were $474.9 million, an increase of 12.8% compared to $421.1 million in 2016
- Earnings per share for the third quarter increased to $0.63 for 2017, up from $0.55 per share in 2016
- Net earnings for the first nine months of 2017 were $1.53 billion, a 3% increase over $1.48 billion in 2016
- Publix’s sales for the first nine months of 2017 were $25.6 billion, a 3% increase from last year’s $24.9 billion
Comparable-store sales for the first nine months of 2017 increased 1.2%, according to the release, which it estimates the impact of Hurricane Irma resulted in a 1% percent jump for the first nine months of 2017.
Likewise, the company attributes 3.1% of its sales increase to Irma, as well as the profit on the incremental sales having more than offset inventory losses “due to power outages and other additional expenses.”
While Publix is not publically traded, the retailer noted its stock price increased from $36.05 per share to $36.85 per share as of its financial report’s release yesterday, Nov. 1.
The amounts listed in the report are based on unaudited reports that will be filed with the U.S. Securities and Exchange Commission. For the latest in retail and other news that could influence fresh produce, keep checking in with AndNowUKnow.
MONTEREY, CA – The first ever Organic Grower Summit (OGS), a joint production between California Certified Organic Farmers (CCOF) and Organic Produce Network (OPN), has finalized its keynote speakers, rounding out the line-up with Sun Basket COO Don Barnett.
“Our mission at Sun Basket is to make healthy cooking easy and delicious by delivering Northern California’s healthy food culture to the rest of America,” Barnett said, in a recent press release. “We’re re-imagining the food supply chain with state-of-the-art technology that allows amazing food from the best organic farms to reach a wider American audience. To be able to share information and network with organic growers at OGS benefits all of us in the world of organic food.”
With over 25 years of fresh produce experience, including acting as Co-Founder/Partner and CFO of NewStar Fresh Foods, Organicgirl Produce, and Pessagno Winery, Barnett has been confirmed as the final keynote presenter and will represent Sun Basket, a leading nationwide delivery service that provides recipes and pre-portioned organic ingredients for home-cooked meals, at this year’s OGS.
“We are thrilled Don is able to talk to OGS attendees about the growing direct-to-consumer marketplace and the challenges and opportunities for those producing organic fresh products,” said Tonya Antle, Co-Founder of OPN. “Sun Basket has made a tremendous commitment to the organic and sustainable space and is positioned to be a leader in this category."
The inaugural OGS will bring together organic growers, producers, and processors for two days of education, information, and networking opportunities with organic production supply chain and service providers in Monterey, CA. Held on December 13-14, the event includes a series of educational sessions, keynote presentations, meal functions, and a sold-out trade show floor exhibiting over 75 service providers and supply chain companies, sponsored by Western Growers. Among participating exhibitors are leaders in the fields of seed, packaging, soil amendments, and food safety, who will be connecting with organic field production staff, supply chain managers, pest management advisors, and food safety experts.
The education-rich program of OGS includes six different sessions covering an array of subjects from technology to soil optimization and will feature some of the industry’s leading experts. Among the scheduled educational sessions are: “Issues Facing Organic Farmers Today,” “Clean and Renewable Technology,” and “Tools for Plant and Soil Health.” Additionally, a Grower Roundtable titled “From Wall Street to Main Street, Organic Means Good Business” is slated as a keynote presentation and features Scott LaRue of Piper Jaffray as moderator, and Bill Reiman of Gladstone Land Corp, founder of Mission Ranches Stan Pura, and President of Grimmway Farms Jeff Huckaby.
Participating grower attendees also will have an opportunity to meet with a team of Costco buyers as part of a special "Meet the Organic Farmer" session. This unique session provides certified organic farmers and grower representatives the opportunity to meet one-on-one with Costco organic produce, dairy, meat, and wine buyers to discuss operations and products.
“Costco is committed to meeting directly with organic farmers, who are truly on the front lines of bringing top quality organic products to market,” said Heather Shavey, Assistant Vice President for Costco. “We appreciate the work OPN has done in putting together this unique opportunity to meet face to face with those responsible for actually growing organic products. Our buying team is looking forward to learning more about organic production, hearing about new product innovations, and building new supplier opportunities to meet the growing demand for organics for our shoppers.”
Additionally, OGS is finalizing an educational outreach program for PCA, PRC, and qualified applicators to kick off the event. Attendees are eligible for two hours of approved continuing education credit and can learn about new requirements for pesticide use near schools and worker protection standards.
For a complete schedule of events and more information, visit organicgrowersummit.com. For more produce industry news, stay up-to-date with AndNowUKnow.
CASTROVILLE, CA - As consumers enter the busiest season where kitchen convenience is most crucial, Ocean Mist® Farms is looking to enhance the ease of its popular Season & Steam® product line with a new campaign.
The company is launching ‘Tis the Season to Steam Sweepstakes, a 7-week consumer promotion. Starting November 13th and running through December 31st, this sweepstakes will be providing recipe inspiration, preparation tips, and cookbook resources.
Featuring the Season & Steam ready-to-use, award-winning packaging, its unique convenience might be lost in its powerful presentation, Senior Director of Marketing Diana McClean observed.
“We recognize that some of our products may be intimidating to people who are unfamiliar with these vegetables,” Diana said in a recent press release. “The Season & Steam product line features many different options and encourages people to try them with a more approachable preparation method.”
Everyone loves a good serving of steamed vegetables, but the preparation can sometimes bite into already jam-packed schedules. Ocean Mist is setting out to eliminate this issue with the popular product line, which gives users the option to pre-season the vegetables, reseal the zip lock, and steam in the microwave–all in the same bag!
With this no muss, no fuss meal option for your customers, they can enjoy Season & Steam’s vegetables, including:
- Whole artichokes
- Sweet baby broccoli
- Whole, halved, and shredded Brussels sprouts
As a reward for the promotion, consumers can take home a prize pack, including Ocean Mist products, a Williams Sonoma® vegetable steamer, and more.
With the holidays right around the corner, Ocean Mists’ new launch is focused on making dinner preparations for your shoppers easier, healthier, and more joyful throughout the season.
Stay tuned into AndNowUKnow for more fresh produce news!
CULIACÁN, MX - Floriza en Los Parajes organic produce, marketed by Bridges Produce under the Aztlan Organic label, is ending October with a bang, taking home its first Fair Trade USA certification. Located in Culiacán, Sinaloa, Mexico, Floriza en Los Parajes has 52 acres of shade houses, where it grows organic bell peppers, eggplant, and cucumbers, as well as Anaheim, jalapeño, poblano, and serrano chili peppers. Come mid-November, these organic commodities will be available to be sold under the Fair Trade label.
“The mission of Bridges Produce is to ensure that every stakeholder in our food system is not only protected, but also thrives—the consumer, the retailer, the farm, the farmworker, and the environment,” said Ben Johnson, President at Bridges Produce. “Fair Trade certification is a great way to formalize this commitment to the farm workers and to empower consumers to vote with their dollars.”
Bridges Produce has been marketing Floriza en Los Parajes’ organic produce since 2012, according to a press release, and with this new distinction, is adding bell peppers and chili peppers to it’s growing list of Fair Trade offerings. In addition to Floriza, Bridges also markets Hermosillo based Rico Farms’ organic hard squash, eggplant, zucchini, green beans, and melons, which have been Fair Trade USA certified since 2013, as well as what the company says are the only Fair Trade USA certified apples and pears in the USA. Grown by Lago Verde in Argentina, these apples and pears are available from March through June.
For the multi-generational family farm of Floriza en Los Parajes, Fair Trade USA certification came naturally, having always been dedicated to its rural community and to a compassionate business model.
“We have benefited from the support of our workers through many crises, and have tried to help them whenever we can. We hope that being Fair Trade certified will allow us to help them even further,” said Fernando González Peña, Floriza en Los Parajes' Assistant Manager and Director of Food Safety, adding that he is excited to see what personal growth will come from the Fair Trade program. “The fact that the workers have to work together to administer funds for the general good is a very interesting proposition that will hopefully have a positive impact on their political awareness, social relationships, and personal economies.”
To learn more about Floriza en Los Parajes and all its Fair Trade offerings, contact Bridges Produce at [email protected], or by phone at 503-235-7333, and see all of what Bridges has to offer at www.bridgesproduce.com.