SANTA PAULA, CA - Limoneira Company announced that it has officially completed its previously announced acquisition of 757 acres of lemon, orange and specialty citrus orchards in San Joaquin Valley for a price of $15.1 million.
"We are pleased to complete the acquisition of the orchards that were part of the Sheldon Ranch leases,” said Harold Edwards, President and Chief Executive Officer of Limoneira. “We have recently acquired approximately 900 acres of land that was previously leased in the highly productive San Joaquin Valley, and this is expected to generate incremental operating results and cash flows resulting from the elimination of lease expense beginning in fiscal year 2016.”
According to a press release, Limoneira’s acquisition closed on December 2, 2015. The orchards, referred to as the Sheldon Ranch leases, were acquired pursuant to purchase options contained in certain operating leases the company has had since 2012, for approximately 1,000 acres of lemon, orange, specialty citrus and other crops. Lease agreements included base rent of $500 per acre, Limoneira says, and contingent rent of 50% of the operating profit of the leased property as defined in the lease agreements. Total rent expense for fiscal year 2015 on the acquired property is estimated to be approximately $1.0 million and was approximately $1.4 million for fiscal year 2014.
Edwards shared that since Limoneira went public in 2010, the company has acquired approximately 3,300 acres of agricultural property totaling approximately $48.5 million. As Limoneira begins to realize cash flow from its recent real estate development agreements, Edwards says the company will remain focused on capitalizing on strategic and accretive acquisition opportunities to further expand its global agribusiness.
DENVER, CO - Farmland Partners Inc. has announced a new purchase agreement to acquire a 7,400 acre farm in Louisiana for $31.8 million in cash. The acquisition is expected to close in the first quarter of next year, according to a press release, but is still subject to customary closing conditions.
"Our third largest acquisition agreement to date is comprised of roughly 7,400 contiguous, irrigated acres, nearly all of which have been precision leveled,” said Paul Pittman, CEO of Farmland Partners. "This agreement, which was enabled in part by the structure of our recently announced $197 million Paris, Illinois pending acquisition, demonstrates our ability to consistently put capital to work at good cap rates.”
Concurrently with the land acquisition, Farmland Partners entered into a three-year lease agreement with the seller of the Louisiana farm. The press release explains that the lease agreement will have rental payments based on a percentage of gross farm proceeds, including a minimum cash payment for the use of improvements on the farm. Using conservative assumptions of commodity prices and crop yields, the company explains that it believes the return will be approximately 5.0% annually.
This acquisition comes less than one month after the company acquired 22,300 acres in Illinois for $197 million. In total, Farmland Partners owns or has under contract 253 farms with an aggregate of 104,742 acres (including 130 farms totaling 32,319 acres under contract) in Arkansas, Colorado, Georgia, Illinois, Kansas, Louisiana, Michigan, Mississippi, Nebraska, North Carolina, South Carolina and Virginia.
GREENSBORO, NC – The Fresh Market continues to shake things up as it looks to turn the tables on its performance.
In the latest of its big moves, the company terminated its Executive Vice President and Chief Operating Officer Sean Crane, according to a Form 8-K filed with the SEC on Dec. 2nd.
As we reported recently, the retailer’s new CEO Rick Anicetti discussed a detailed turnaround plan, including further improvements in fresh, reduction in shrink, and investment in store format changes and customer engagement.
Trimming costs has also been mentioned as a necessity to bring the banner back, though details of the context of Crane’s termination have not yet been released, nor has a replacement been announced.
Anicetti and the chain did say previously when announcing a disappointing third quarter report and several store closures that the management team and Board of Directors are “simultaneously moving forward aggressively with a number of initiatives to strengthen the company’s foundation, increase productivity, drive store traffic, and regain operating momentum.”
It appears safe to say that this will not be the last big news Fresh Market will come out with as it continues its transition. AndNowUKnow will continue to follow the company’s changes to keep you up to date on the latest influences in the retail circuit, so stay tuned.
LOS ANGELES, CA - With the recent growth it has experienced, the Vision Companies happily announced that it has also welcomed Matthew Clark to the team as its new Executive Vice President/General Manager.
“With our recent strong growth in sales, imports, and grower direct programs, we were real happy to find someone with Matt’s qualifications. He is the right person for the right time,” Bill Vogel, President of The Vision Companies, detailed according to the company's press release.
Those qualifications include vast experience in international procurement development, as well as operations and full P&L responsibilities. He has held executive and leadership positions with Eco-Farms in Temecula, CA, Brog Produce, and Sierra Nevada LTD where he was Executive Director. Matt also served as General Manager for Exportadora Rucaray SA, in Santiago, Chile and speaks several languages.
“What impressed me the most of the Vision Group was the fine group of people that Bill is working with!” Matt said in the release. “I am looking forward to working closely with all at Vision to help reach its maximum potential.”
According to Vision, Matt will be overseeing all operations at the company in Los Angeles, Arizona, as well as partnering in management of the New Jersey, Florida, and Texas Vision Import Group.
In his new role, Matt will be based in Los Angeles, California.
VALENICA, CA - With Sunkist continuing to push its Meyer lemon program with a wide array of packaging and point-of-sale materials, new data shows that the variety is one of the fastest growing in the citrus category.
According to IRI Worldwide data, Meyer lemon retail sales and volume have increased significantly in the January-February peak season period over the last few years, with sales in U.S. dollars up 51 percent, pounds up 43 percent and units up 29 percent in 2015 compared to 2011.
“The lift in Meyer lemon sales at retail is very exciting – and there is still huge opportunity for this variety,” explained Sunkist Director of Retail Marketing Julie DeWolf. “Moreover, we’ve seen sales increases in bulk and 1-pound bags, demonstrating the room for growth in the category for both offerings.”
Sunkist has been offering retailers several ways to effectively merchandise Meyer lemons to build consumer awareness and drive sales. DeWolf offers that education is critical when it comes to driving demand for specialty items like Meyer lemons.
“Providing flavor profiles, nutrition information, usage tips and recipe ideas definitely piques consumer interest,” she continues. “Sunkist works closely with our customers to produce materials and programs that help build awareness at the point-of-purchase for varieties like Meyer lemons, and the sales results demonstrate the growing demand for this item.”
Meyer lemons have particularly been growing, in the foodservice sector, reports show. According menu data from Technomic, Meyer lemons grew 8 percent on appetizer and dessert menus in the past year and the variety grew 6 percent on fine dining menus.
“While Meyer lemons have been prized by chefs for some time, as consumer familiarity with the variety increases we are also seeing increased Meyer lemon use in the foodservice sector,” commented Joan Wickham, Sunkist Advertising & Public Relations Manager. “The Meyer lemon growth we continue to see in foodservice is encouraging, and we think there is more opportunity, particularly with beverages.”
According to Joan, the National Restaurant Association (NRA) cited gourmet lemonades as the top non-alcoholic beverage trend for this year, marking a promising opportunity for restaurants to capitalize on with Meyer lemons.
Sunkist offers Meyer lemons year-round, with peak supplies during the winter months, the company shared in a press release. Thought to be a cross between a regular lemon and a mandarin, Meyer lemons are a bit sweeter and less acidic than conventional lemons and have a refreshing herbal scent. A Meyer lemon’s rind can vary from bright yellow to a rich yellow-orange and has a soft, smooth feel.
To learn more about Sunkist® Meyer lemons, visit Sunkist’s new website or contact the Sunkist sales team at [email protected].
SANTA MARIA, CA - Musicians and celebrities were not all that was abuzz at the the American Music Awards®, hosted on Saturday, November 21 at the W Hotel in Hollywood. Tozer Seeds was invited to participate in the luxury gifting suite, where they were able to introduce Kalettes to approximately 100 celebrities.
“We are so honored to have been invited to be a part of the American Music Awards luxury gifting suite, and used this opportunity to increase awareness for Kalettes among the celebrities, who we know are powerful influencers,” Kraig Kuykendall, Sales Manager of Tozer Seeds America—the company behind Kalettes—said in a press release. “Since the event, we’ve already received several requests for Kalettes samples from some of the celebrities and are excited for Kalettes to be a part of American pop culture.”
Among the influential faces to appear at this annual star-studded event and give the Kalettes a try were:
- Cat Cora, Iron Chef on the Food Network’s “Iron Chef America”
- Melissa D’Arabian, Chef and Host on the Food Network
- Grammy® award-winning rapper and chef Coolio
- American Music Award performer Kirsten Maldonado of Pentatonix
- Jackson Rathbone, cast member of Twilight
Kalettes, the superfood hybrid that are the product of more than a decade of research by Tozer Seeds, are not genetically modified, but a product of cross-pollinating brussels sprouts with kale through traditional methods.
Tozer Seeds, which has exclusive marketing agreements with select companies to both grow and market Kalettes, expressed great excitement for the opportunity to network with so many influencers on an individual basis to increase public awareness about this nutty but sweet, nutrient-dense veggie.
WILMINGTON, DE - DuPont is extending its current offering to the produce industry by providing a value-adding offer that enables cost reduction by providing sustainability to produce that often suffers loss during the cold chain with the company’s innovative DuPont™ Tyvek® Cargo Covers. These covers have seen wide use in pharmaceutical applications since the product launched and has recently been endorsed by several major cargo airlines. In the past 4 years, use of the covers has expanded into protecting perishable products worldwide including fruits, vegetables, cut flowers and plants.
Annette Kim, DuPont™ Protection Technologies Growth Program Manager, joined me to talk about this growing segment of the Protection Technologies business, and the highlights of the proprietary covers.
“Produce is a relatively new application for Tyvek® Cargo Covers. Customers are seeing the value in this product and we are conducting more and more trials across perishable categories. It has been very exciting to be a part of this product’s growth,” Annette said.
DuPont is constantly making moves to enhance its product mix and offer more options for produce customers. So what exactly are the benefits of DuPont™ Tyvek® Cargo Covers? Annette tells me that these protective covers are made from a proprietary high-density polyethylene (HDPE) manufacturing process that creates a unique balance of properties that are ideal for a protective cover.
“Because we are first targeting air transportation for perishables, one of the primary categories for us has been asparagus as a large amount gets flown into the U.S. through Miami, FL from Lima, Peru,” Annette said. “We have also been working with berry and cherry companies as well and gaining much interest from the growers and shippers of fresh cut flowers. As more people continue to see the value in Tyvek® Cargo Covers, we will continue to evolve the program.”
Tyvek® Cargo Covers help reduce losses, have ease-of-use and can be installed or removed in as little as one minute. They also offer a simple, robust design, which means there is no complicated training and no return logistics required. Tyvek® Cargo Covers help improve the bottom line by reducing costs associated with temperature excursion loss and are specifically engineered to address the threat of cold chain breaks during transit.
Tyvek® Cargo Cover protective advantages include:
- Excellent protection against temperature excursions by shielding your products from the threats of solar radiation and extreme ambient temperatures (hot and cold).
- Protection from physical hazards including rain, snow and insects.
- Breathable cover allows perishables to respire normally, vents harmful gases such as ethylene and reduces probability of condensation damage. Breathability also allows perishables to be fumigated while covered, preserving your cold chain protection during this process.
- Enhanced shipment security because these white opaque covers shield your cargo from view and are inherently tamper-evident.
- Superior protection from solar radiation as a result of their unique reflective outer surface.
- Excellent protection from ambient temperature extremes–hot and cold–without the weight or bulk of alternative covers.
DuPont™ Tyvek® Cargo Covers come in two basic designs: a one-piece top cover, and a two-piece top and bottom cover. The covers are tailored to fit upper and lower deck standard cargo sizes, such as Euro and UK/US pallets, ULD, PMC, PAG, AKE, and LD3 and are also customizable.
As the import/export opportunities continue to grow, so will DuPont and its evolving Tyvek® Cargo Cover program.
Copyright © 2015 DuPont. All rights reserved. The DuPont Oval Logo, DuPont™, The miracles of science™ and Tyvek® are registered trademarks or trademarks of E. I. du Pont de Nemours and Company or its affiliates. Technology by blueye® is a registered trademark of Blueye, LLC.
CINCINNATI, OH - Kroger has announced its Q3 2015 financial results this morning, highlighting a profit that beat analysts’ estimates and increased stock prices by over 5%. Kroger also raised its annual outlook after this quarter’s success with new locations and organic product sales.
“Our associates delivered another quarter of excellent identical supermarket sales and earnings results that provide great momentum as we head into the holiday season,” Chairman and CEO Rodney McMullen explained. “Kroger’s consistent results demonstrate once again that our relentless focus on customers is the key to sustainable shareholder returns. We continue to implement our growth plan and expect to exceed our longterm net earnings per diluted share growth rate for fiscal 2015.”
The company reported net earnings of $428 million, or $0.43 per diluted share, and identical supermarket sales growth, without fuel, of 5.4% in the third quarter of fiscal 2015. This is up 18% over Q3 of last year, which reached $362 million. Kroger’s Simple Truth line of natural and organic goods has grown to more than $1 billion in annual sales, Bloomberg reports, as the trend of healthier eating continues to grow. more Americans attempt to eat healthier.
This successful quarter comes on the heels of Kroger’s announcement that it will be acquiring the Roundy’s chain for $800 million.
Other highlights from Kroger’s Q3 2015 report include:
- Total sales, excluding fuel, increased 5.5% in the third quarter over the same period last year.
- Achieved 48th consecutive quarter of positive identical supermarket sales growth, excluding fuel.
- Leveraged operating expenses as a rate of sales due to strong cost controls and identical supermarket sales growth.
- FIFO gross margin was 22.4% of sales for the third quarter.
- Total operating expenses decreased 23 basis points as a percent of sales compared to the prior year.
- Return on invested capital (ROIC), on a rolling four quarters basis, was 14.16%.
As of 12:23 PM EST, Kroger’s shares were up 5.69% to $40.28 following the quarterly announcment.
Stay tuned to AndNowUKnow as we continue to follow Kroger’s financial performance in Q4 2015 and beyond.
SALINAS, CA - With farmers making up just 2% of the U.S. population that continues to grow, yet producing 262% more food with 2% fewer inputs than in 1950, Western Growers is looking to prepare the industry with the philosophy that more tech isn’t better- it’s necessary.
“In an era of diminishing natural and human resources, the future of agriculture depends on technology,” President and CEO of Western Growers Tom Nassif tells us.
To maximize the industry’s access, Western Growers is unveiling a new Center of Innovation and Technology, opening up on December 10th.
“It is our mission to discover, nurture, and promote innovation in the field of agriculture,” Tom added.
The 2,800-square-foot center will feature standard office equipment for both hot desks and workstations, serving as a hub of technological development for the agricultural industry.
Sponsors of the new center include:
- Taylor Farms
- JV Smith Companies
- Toro Micro-Irrigation
- Monsanto
- Bayer CropSciences
- Prophet North America
According to the Western Growers Association, technology companies will be able to work with agriculture to identify the critical needs of the industry and receive continuous feedback on the practical application of their potential solutions.
With ongoing programming to help start-up companies establish businesses, as well as connect businesses with the ag industry, the association is looking forward to providing a space that will serve as an effective connection for the industry.
FORT PIERCE, FL - Natalie's Orchid Island Juice Company is giving consumers something to smile about with its 100% produce juice line—a gourmet pasteurized drink with no preservatives, no GMOs, and all-natural ingredients.
Natalie’s juice flavors include 100% Florida Orange and Grapefruit Juice, as well as Honey Tangerine, Orange Pineapple, Orange Mango, Strawberry Lemonade, Natural Lemonade, Pure Lemon and Lime Juice, Margarita Mix, Sweet & Sour Bar Mix, and now—Natalie's Fresh Tomato Juice.
Locally sourced from Florida, Georgia, South Carolina, North Carolina, and Virginia, these tomato unique juices only use two ingredients—fresh tomatoes and lemon juice. Natalie's keeps these juices at the peak of freshness, squeezing its tomato juice to order in small batches.
Like all of Natalie’s juices, the new Tomato Juice is gourmet pasteurized for the minimum amount of time, at the minimum temperature, to retain the quality and nutrition. Unlike most tomato juices on the market, Natalie’s provides a clean label juice with no preservatives, no added salt, no flavor packs, no gmos, and no concentrates.
Natalie’s fresh juices come in an assortment of sizes, with different varieties available in 128 oz., 64 oz., 32 oz., 16 oz., or 8 oz. size bottles, to satisfy the needs of consumers across the board. Natalie’s juices are distributed within 33 states across the U.S., and exported to over 24 different countries.
For more on Natalie's full product line and where to find it, visit www.orchidislandjuice.com.