ROSEMONT, IL - On the heels of a strategic acquisition play, US Foods Chief Executive Officer Dave Flitman and Chief Financial Officer Dirk Locascio recently provided an update regarding the distributor’s latest financial results.

“Our results for the first quarter were in line with our expectations, demonstrating the strength of our business model and our ability to win in any environment as we overcame both internal and external headwinds to start the year,” said Dave Flitman, Chief Executive Officer. “Our team remains focused on capturing profitable market share with our target customer types and driving further progress on our strategic initiatives to improve profitability.”

US Foods’ net sales reached $8.9 billion for the quarter, showing an increase of 4.8 percent from the prior year. As a press release detailed, this was driven by case volume growth and food cost inflation of 1.5 percent.

“Our differentiated model and strong value proposition are resonating with our customers which has helped propel us to grow share with independent restaurants for 12 consecutive quarters,” Flitman continued “We continue to make significant improvements in our operational performance as we achieved a 30 percent improvement in our safety results and drove nearly 4 percent improvement in delivery productivity, in line with our goal to increase productivity by 3 percent to 5 percent annually.”

Other Q1 highlights include:

• Gross profit increased 4.9 percent to $1.5 billion
• Total case volume increased 4.2 percent; independent restaurant case volume increased 4.6 percent
• Net income available to common shareholders was $82 million
• Adjusted EBITDA increased 5.6 percent to $356 million

“We closed on our previously announced acquisition of IWC Food Service in April and are excited to welcome the team to US Foods. IWC expands our presence in the central Tennessee market and serves the greater Nashville area, one of the fastest growing markets in the country,” Flitman added.

Locascio, Chief Financial Officer, also gave his input.

“We executed well in the first quarter despite the challenging start to the year by staying focused on what we can control,” Locascio said. “We continue to execute our strategy and focus on driving profitability improvement, accelerating free cash flow generation, and maintaining our strong balance sheet. Given our performance for the first quarter and outlook for the full year, we are reaffirming our fiscal year 2024 guidance.”

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DENVER, CO - Experts suggest that the potato category is primed for retail growth. In response, Potatoes USA has released a new educational series filled with fresh data and actionable recommendations.

“Fresh potatoes are the No. 1 selling vegetable accounting for more than 10 percent of all vegetable sales, but this is not their ceiling of opportunity,” said Anne-Marie Roerink, Founder of 210 Analytics, citing Ibid. “There are pockets of opportunity throughout the fresh potato category retailers can leverage to drive renewed pound growth.”

To help retailers capitalize on fresh potato sales opportunities, Potatoes USA has created the “Powered by Potatoes” education series. Individuals can register here to access:

• The 30-minute “Unearthing Opportunities in Fresh Potato Sales at Retail” webinar
• An ongoing email education program with tips to bring the webinar’s suggestions to life

According to a press release, Russet potatoes generate more than 50 percent of fresh potato sales—a must-win performer to cement solid category sales. However, Potatoes USA emphasizes that it is important to capitalize on growth drivers as well. In 2023, yellow potatoes surpassed reds as the second largest seller with a 6.7 percent-pound increase in 2023, the release noted. This variety shows strong volume and dollar gains.

“When it comes to capitalizing on the power of the potato, best-in-class retailers have a wide assortment that centers on Russet, yellow, and reds and rounds out with smaller and mixed varieties,” Roerink said. “Pound growth in the current marketplace is remarkable, so consider giving extra emphasis to marketing yellow, as they are trending strong now. Our data finds success in yellow across the board in bag/pack sizes and in bulk.”

The 5 lb bags are the potato mainstay and represent 51 percent of fresh potato pound sales. However, smaller pack sizes are seeing steady growth.

“There are several reasons for smaller pack sizes to have outperformed last year, including potatoes’ above-average inflation in the first half of the year, core households becoming smaller, and consumers paying attention to preventing food waste at home as a chief way to save money,” she explained. “Consider a wide array of pack sizes when it comes to growing sales, including smaller.”

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VANCOUVER, BRITISH COLUMBIA - Backed by a seamless supply chain and a new crop of Envy™ apples, alongside a wide range of other year-round varieties, Oppy is helping retailers boost their standing in the apple sector. The grower, marketer, and distributor’s imported apple set gives grocers a competitive edge as the season transitions and consumers continue their search for high-quality fresh produce.

"Our commitment to quality, innovation, and adaptability drives our success," said Executive Director of Apples, Pears, and Category Development Piers Hanbury. "We're proud to offer a diverse selection of premium and everyday apples, including Ambrosia, Braeburn, Smitten, Royal Gala, Fuji, Granny Smith, Pink Lady, and our signature Envy and JAZZ apples."

With a seamless supply chain spanning Washington, New Zealand, South Africa, and Chile, Oppy is anticipating a successful campaign ahead. The provider’s strong supply chain prowess allows it to ensure a consistent and reliable source of apples in the spring and summer months. Oppy’s partners can rely on a steady supply of fresh and flavorful apples as the company anticipates a smooth transition between domestic and import growing seasons.

As a press release noted, Envy apples continue to demonstrate remarkable growth, outpacing the industry with a 19 percent increase in conventional supply and an impressive 77 percent surge in organic offerings.

“Our retailers can depend on Oppy to be a partner in their success. With our extensive marketing support and commitment to our expect the world from us promise, they can lean on us to deliver the best in flavor, crunch, and eating experience,” said Hanbury. “And at a time when every dollar holds significance for consumers, we believe they deserve nothing less than the crisp satisfaction and superior taste of a freshly harvested apple.”

In addition to this advantageous variety assortment, Oppy offers a range of marketing materials, including shipper units, posters, recipe cards, tote bags, and digital and social content to help drive sales.

Stay alert regarding the latest category opportunities with updates from AndNowUKnow.

HOUSTON, TX - If there’s one thing our industry excels at, it’s honoring those who came before us. During this year’s Viva Fresh, the Texas International Produce Association (TIPA) honored the late Craig Fox with an in-memoriam tribute. At the Viva Fresh Open golf tournament, presented by BEBO Distributing and H-E-B, TIPA posthumously honored Craig Fox with a $25,000 scholarship in his name.

To all who knew him, Craig Fox was described as a visionary and a friend to many. His impact goes beyond our industry, but his unwavering commitment to his customers and his understanding of market challenges made him a man of produce. His legacy lives on through his sons Jacob and Dylan Fox, who continue in his footsteps at Fox Packaging.

Aaron Fox, Craig’s brother, accepted the scholarship check on behalf of the Fox family.

“From everyone in the Fox family, I want to express a heartfelt gratitude to TIPA and the Viva Fresh steering committee for bestowing this honor to my brother,” said Aaron Fox, Vice President of Fox Packaging. “Craig had an unbelievable gift for understanding the intricate balance between tradition and innovation. While he had a tremendous respect for the roots of this industry, he constantly pushed the boundaries of what could be possible. As we honor his life and legacy, let us pledge to uphold his greatest principle: remaining fully present in our interactions with the industry and listening attentively to our customers. This level of attentiveness allows us to uncover the path forward, while determining necessary paths and actions to maintain the loyalty of the industry.”

According to a press release, Ed Bertaud, IFCO’s Director of Retail Sales, announced the posthumous scholarship in Craig's honor.

"Once a year, we have the opportunity to recognize and honor a member of the Texas produce industry who is no longer with us but made numerous contributions to our industry,” Bertaud commented. “Craig is not only a member of a family, but also a member of a family business that we all would struggle to find a better example of, in terms of legacy, excellence, education, and promotion of our industry and I’m so proud to have him as this year’s recipient.”

The scholarship is open to employees of TIPA member companies and their immediate family members.

We applaud TIPA and Viva Fresh for bestowing this honor on a man known for his passion for our industry.

LAKELAND, FL - Publix is looking back over the success of its first quarter of 2024, sharing a look at its overall company growth as its quarterly sales eclipse $15.1 billion.

“I’m proud of our associates, the owners of Publix, for continuing to make shopping a pleasure for our customers,” said Publix Chief Executive Officer Kevin Murphy.

Among its financial results, Publix reported that its sales for the three months ended March 30, 2024, reached 15.1 billion. This represents a 5 percent climb from the 14.3 billion recorded in 2023. As explained in a press release, the retailer estimates sales increased 1 percent due to the effect of the Easter holiday being in the first quarter of 2024; the effect of the Easter holiday was in the second quarter of 2023.

Other key highlights shared in the report include:

• Net earnings for the three months ended March 30, 2024, were $1.4 billion, compared to $1.2 billion in 2023, an increase of 10.1 percent
• Earnings per share for the three months ended March 30, 2024, increased to $0.41 per share, up from $0.37 per share in 2023
• Excluding the impact of net unrealized gains on equity securities in 2024 and 2023, net earnings for the three months ended March 30, 2024 and April 1, 2023 would have been $1.1 billion

Dive further into the report here, and keep clicking on AndNowUKnow for the latest in retail.

DELANO, CA - The premium table grape category continues to experience dynamic changes as demand for its top-tier varieties and programs remains at the top of retailers' minds across the globe. Four Star Fruit remains a constant in this space and has recently grown its portfolio with the acquisition from Agriculture Capital of Columbine Vineyards’ Holiday grape program.

“We are excited to bring our retail partners the Holiday grape program with deep industry roots,” Jack Campbell, President of Four Star Fruit, tells me. “This acquisition makes us the exclusive marketer for the Holiday variety.”

Under the terms of the acquisition, Four Star Fruit has exclusive rights to all brands, trademarks, and DNA associated with the Holiday variety.

In table grape production since 1987, family-owned Four Star Fruit has been operating for three generations by the Campbell family. The company's ranches are located throughout California’s San Joaquin and Coachella Valley, as well as Mexico. Four Star Fruit offers grapes in both conventional and organic.