MONTRÉAL, CANADA - METRO is reaping the benefits of successful growth strategies—including continued investments in fresh through via two cutting-edge facilities—and delivering growth for its second quarter of fiscal 2024.

"We are pleased with our sales performance in the second quarter on top of a strong quarter last year and with inflation continuing to decline. Our results met our expectations as we completed the bulk of the transition to our new automated fresh and frozen facility in Terrebonne," said Eric La Flèche, President and Chief Executive Officer. "Going forward, our teams are focused on ramping up productivity, and we are now gearing up for the launch of the final phase of our Toronto automated fresh facility this summer. Finally, we are announcing today the launch of our MOI Rewards program in our Ontario food stores later this year, which will provide even more savings to our customers. We are confident that our sustained investments in our supply chain, our retail networks, and our digital capabilities will continue to create long-term value for our shareholders."

The retail operation pointed to several key areas of growth during Q2, which ended March 16, 2024. Some highlights include:

• Ramp up of new automated Terrebonne distribution center on track
• Sales of $4,655.5 million, up 2.2 percent
• Food same-store sales up 0.2 percent, and up 2.7 percent when adjusting for the Christmas week shift
• Net earnings of $187.1 million, down 14.5 percent, and adjusted net earnings of $206.4 million, down 8.4 percent
• Fully diluted net earnings per share of $0.83, down 10.8 percent, and adjusted fully diluted net earnings per share of $0.91, down 5.2 percent

The full report can be accessed here.

As the retailer funnels increased investments into its fresh operations, ANUK will continue to report on its growth and more.

SACRAMENTO, CA - In a state that has faced many water-related challenges, increased water allocation is fantastic news. We were excited to learn that the Department of Water Resources (DWR) has announced a further increase in the State Water Project (SWP) water supply allocation forecast for 2024. The forecasted allocation has increased to 40 percent, up from 30 percent last month.

“This year highlights the challenges of moving water in wet periods with the current pumping infrastructure in the south Delta. We had both record low pumping for a wet year and high fish salvage at the pumps,” said DWR Director Karla Nemeth. “We need to be moving water when it’s wet so that we can ease conditions for people and fish when dry conditions return. It’s one more reason the Delta Conveyance Project, which would move water when the flows are high in a manner safer for fish, is a necessary climate adaptation project for California.”

The SWP provides critical water supplies to 27 million Californians and farmers served by 29 public water agencies. This increase would provide an additional 420,000 acre-feet of water, enough water to serve an estimated 1.5 million households for a year, a press release stated.

The update is based on an 800,000 acre-foot increase in storage at Lake Oroville and the latest snow survey data from the all-important April 1 measurements. Statewide, the snowpack remains near average at 99 percent of average for this date. The spring forecast in the latest snow runoff report also anticipates above-average runoff this spring.

The SWP is working with the U.S. Army Corp of Engineers to manage flood releases and maximize the capture and storage of water from the winter storms and spring runoff in its reservoirs. Since January 1, storage has increased by 917,000 acre-feet at Lake Oroville and by 178,125 acre-feet at San Luis Reservoir.

Allocations are updated monthly as snowpack, rainfall, and runoff information is assessed, with a final allocation typically determined in May or June.

For more from the press release, click here.

ANUK has you covered on the industry’s latest news.

WASHINGTON, DC - Recently, members of the International Fresh Produce Association’s (IFPA) Food Safety and Government Relations teams shared testimony and comments with the United States Department of Agriculture’s National Organics Standards Board (NOSB) regarding proposed changes to the National List of Allowed and Prohibited Substances. In its testimony, IFPA urged the urged the agency to continue its use of objective, science-based decision-making as it considers the proposed changes.

“We urge the NOSB to consider our recommendations to the National Organics Program with specific attention to the need for adequate tools for fresh produce growers, for objective scientific review, and with an understanding of the diverse needs for the many crops, growing regions, and production methods in the organic industry,” said IFPA Director of Production and Environment Sara Neagu-Reed. “With a limited toolkit already, it is imperative that organic growers can continue to access these critical listed substances to combat pests and nurture plants in a variety of scenarios.”

These recommendations were backed by industry expertise and the data provided by the association's Organics Committee.

IFPA provided feedback to the NOSB Spring Agenda on the following:

• Residue testing for a global supply chain: IFPA urged that NOSB ensure pesticide residue certifiers are adequately trained in proper sampling protocols (including chain of custody to safeguard accuracy and reduce cross-contamination) and understand the optimal time to conduct testing
• Climate-induced farming risk and crop insurance: IFPA called on the NOSB to level the playing field for producers, specifically improvements in quality factor considerations during loss adjustment, ensuring agents have expertise in organic markets for revenue protection, and appropriate length of time needed for in-field adjuster review specifically cited as focus areas for the agency
• Improving support for organic transition proposal: While supportive of NOSB assistance for organic transition, IFPA shared its members’ concerns over the adjusted gross income limitation placed on various USDA programs, which often prohibits growers from participating in organic transition programs
• Inert ingredients in pesticide products: IFPA cautioned against listing all inert ingredients individually on the National List as doing so would dramatically increase the number of substances subject to sunset review

“Individual listings will create unnecessary risk in the ability of NOSB to conduct sunset reviews in a timely manner,” stated IFPA Vice President of Regulatory Compliance and Global Food Safety Standards Emily Moyer. “The NOSB should prioritize refining an inert ingredients list where ingredients that can be approved as a whole, rather than individually in the current system, as well as collaborate with staff and specialists at the Environmental Protection Agency to ensure accuracy of ingredients and their use.”

For more details, click here, and to read the organization’s testimony in full, click here.

Stick with ANUK for more industry news.

CALIFORNIA - There is certainly room for excitement as peak strawberry season is here! Bobalu’s latest crop update revealed abundant opportunities ahead of Mother’s Day, with excellent fruit ready to wow shoppers in terms of flavor, color, and size.

“Now is the time those strawberry displays should be front and center in the department with inviting pricing and promotion to draw shoppers in and build on additional sales at checkout,” Cindy Jewell, Vice President of Marketing, shared in a recent report. “Key Spring holidays are approaching, and weather is improving across the country, so demand is there.”

As the grower reports, sunny days and somewhat cool nights have kept plants healthy, leading to what is predicted to be a long and profitable spring and summer here in California.

“...We seem to be catching up after so many weather disruptions both here and in receiving markets,” Cindy stated. “We have quickly pivoted to steady volume and harvesting every day with our fields on a three-day rotation. Now, we look forward to our retail partners also quickly pivoting to draw the consumers into the produce department as shoppers expect to see strawberries promoted for the next several weeks and months.”

California volume is ramping up statewide due to this optimum weather, with total volume reaching 6.7 million trays last week.

“This was well ahead of last year, but behind the record year we had in 2022,” Cindy notes. “It appears overall weekly numbers will continue to increase for the next several weeks. At the same time, we are hearing that crossings from Mexico and Baja will continue to decline as California increases.”

For more category updates like this, keep reading ANUK.

BAKERSFIELD, CA - Exciting news came across our desks just as we were preparing this morning’s newsletter. Grimmway Farms announced it has entered into an agreement to purchase the assets of Oxnard-based San Miguel Produce. The acquisition marks a significant milestone in Grimmway’s strategic expansion efforts and underscores its commitment to delivering innovative product offerings to its customers.

“This acquisition gives us the ability to leverage our combined strengths to seize new opportunities in the fresh-cut vegetable market, drive innovation, and further our mission to bring fresh, healthy, and safe produce to communities around the world,” shared Grimmway Farms President and Chief Executive Officer Jeff Huckaby. “We are well positioned to build on our many successes of 2023 and meet the ever-growing consumer demand in the industry.”

The integration of San Miguel Produce’s fresh-cut operation expertise and resources into Grimmway's portfolio will enable more unique product offerings and better serve the evolving needs of retailers and foodservice providers, a press release stated.

Additionally, this will support Grimmway’s desire to proactively combat food loss and waste in the field, ensuring maximum utilization of the crop by providing post-harvest options not currently accessible to the company. With complementary strengths and shared values, this acquisition sets the stage for accelerated growth and enhanced presence in the value-added convenience vegetable market.

“We are excited about this next chapter for San Miguel Produce and look forward to supporting Grimmway in innovating new products and expanding business opportunities in the fresh-cut, specialty vegetable category,” said Roy Nishimori and Jan Berk, Partner Owners of San Miguel Produce. “Given the strong alignment of the two companies' core values, we see this as a natural fit for the evolution of the category.”

Grimmway Farms plans to offer employment to the existing team and will continue producing San Miguel’s portfolio of products at its current facility in Oxnard, California. This acquisition will be conducted with careful consideration to ensure a seamless transition for customers and employees alike, the release concluded.

Keep reading ANUK for more exciting news like this.