TYLER, TX - The Brookshire Grocery Company delivered some good news to its workers this holiday week.
Brad Brookshire, Chairman of the Board, sent out a letter yesterday, notifying employees that the chain has decided that it will not pursue a sale, according to KLTV.
As we previously reported, news hit last month that Brookshire was working with JP Morgan & Chase to coordinate a sale worth upwards of $1 billion, including debt that had attracted large banners like Albertsons.
Now, according to KLTV, the chain has decided to change tactics, with no more intentions of putting itself on the market.
“I am pleased to announce that the Board of Directors of the Company has decided this morning to discontinue the sale process of our company,” Brookshire wrote in his letter to employees, according to the report. “The company is no longer for sale and we can now focus on the things that matter most - our customers and partners. I personally want to thank each of you for sticking with us during these past few months of difficult uncertainty.”
The Brookshire chains were founded in 1928 in its home of Tyler, Texas, having now grown to operating more than 150 stores in Texas, Louisiana, and Arkansas under the Brookshire's, Super 1 Foods, and FRESH by Brookshire brands.
JUPITER, FL – In less than six months, Driscoll’s saved more than $1.2 million in what would have been lost shipments thanks to Locus Traxx’s real-time transit monitoring device, SmartTraxx GO. As a result, the company has been named as Driscoll’s 2015 Cold Chain Champion.
“Driscoll’s is pleased to have selected Locus Traxx as our 2015 Cold Chain Champion,” said Tom Shepherd, Driscoll’s Director of Logistics. “They have provided critical leadership in support of Driscoll’s goal of achieving proactive in-transit monitoring of our fruit that includes real-time visibility of temperature, security, and truck location.”
The award was presented during Driscoll’s Logistics Conference in Seaside, CA, which honors providers based on their ability to consistently exceed Driscoll’s expectations, as well as demonstrate an understanding of its vision, mission, and values through their daily work, according to a press release.
Locus Traxx has also provided Driscoll’s with a managed services team to respond to in-transit alerts, the development of customized reporting, and global cold chain support.
David Benjamin, CEO of Locus Traxx, said the relationship with Driscoll’s has been one of “collaborative learning and open communication.”
“The SmartTraxx GO platform has won so many prestigious awards this year, but winning the Cold Chain Champion Award… it’s like winning an Oscar,” he added. “Locus Traxx has committed to provide extraordinary levels of service and has adopted Driscoll’s mission as our own.”
The disposable SmartTraxx GO allows the produce and transportation industries to access real-time data from their shipments. The palm-sized device delivers up-to-the-minute reports via email or text on the location, temperature, and security of the products while they’re in transit so you can be ensured of their safety.
In addition to Driscoll's recent award, Locus Traxx's innovative tool has won United Fresh’s Food Safety Product of the Year Award, IoT Evolutions’ Product of the Year Award, and Supply and Demand Chain’s Green Award. Locus Traxx has also been named a 2015 GrowFL Company To Watch.
ATLANTA, GA - There’s fresh, and then there’s Outrageously Fresh.
As we previously reported, SunSelect and Divemex, along with exclusive marketing partner Oppy, are undergoing a massive growth spurt with the new Outrageously Fresh program, packaged in the innovative “jar bags.”
In our latest exclusive, Chief Business Development Officer and Executive Vice President of Sales and Marketing for SunSelect, Mike Reed, took the time to discuss the line and its mason jar-style wardrobe.
“Our new Outrageously Fresh brand is a combination of ourselves and Divamex out of Mexico, and also our new jar bags which we have the exclusivity on for doing our snacking tomatoes, mini cucumbers, and mini bell peppers.”
Mike explained that the companies have had an unbelievable response on the new packaging, which he says has helped fulfill the original desire to capture the snack category.
“We want everybody to see our outrageous new colors,” Mike adds when we ask what SunSelect wants retailers to take away from this latest produce snack offering. “I think when you see them on the shelves it’s going to pop.”
To see our full interview with Mike, watch the 43 second video at the top of the page.
WARSAW, POLAND – Genesis Fresh has been named as Locus Traxx Worldwide’s appointed representative in Poland.
“At a time when the Russian embargo is continuing to make life difficult for exporters, it is important to find new markets, showing potential customers that having a high level of traceability is vital,” said Jan-Willem Schrijver, Managing Director of Locus Traxx Worldwide EU, according to a press release. “There is no other technology on the market that can offer this level of real-time monitoring of your goods, and now Polish suppliers have the chance to give themselves a real competitive edge.”
SmartTraxx™ GO, LocusTraxx’s innovative line of monitoring devices, will give exporters access to tools they wouldn’t otherwise have.
“Clients nowadays want to know where the product is and at what temperature it is being transported,” Genesis Fresh’s Jan Nowakowski said, adding that this will be the first time Polish companies will be able to purchase SmartTraxx™ GO products from a local distributor. “Traceability is crucial and SmartTraxx™ gives you peace of mind that you can monitor your products and react as necessary to any situation.”
According to the company, Poland currently has a strong export trade, particularly with blueberries, apples, strawberries, raspberries, tomatoes, and peppers, plus continual growth in other fruit and vegetable markets. With this agreement, Genesis Fresh will be able to distribute SmartTraxx™ GO products like GO, GO XL, GO LUX and GO Location that all can track and provide information in real time, regardless of the transport method, in a market where retailers continue to demand higher and higher levels of supply chain visibility.
Locus Traxx and Genesis Fresh expressed excitement to offer an innovative real-time solution that they said has not yet been seen in Poland.
CHILE - It’s a time of change and growth across domestic and international markets for the fresh produce industry as consumer demand grows for year-round availability, as well as variety in their fruit and vegetable options.
Ronald Bown, President of ASOEX, took the time to explain to me that Chile's agricultural center is in flux as it sees changes, some good and some yet to be determined, that are reshaping its fresh produce audience.
“As a country, we are significantly investing in a range of ports, not just in terms of operations but in other ways as well,” he tells me, explaining that though Mother Nature has dealt Chile a few heavy blows this year, the ports continue to do very well and the political aspect of the agricultural industry is transforming.
“In the coming months new labor regulations that we have been working on for many years will [come to fruition],” Ronald adds.
The Chilean government has not, until recently, looked to regulate agricultural labor any differently from other industries. About five years ago, Ronald tells me, agricultural members looked to change that.
“Agriculture has a very different situation from urban or human relations, our rules and regulations and with Mother Nature, where you never know what is going to happen, are very different.”
As a result, ASOEX worked together with laborers for new regulations, resulting in guidelines specific to agricultural that will soon be up for review by the Chilean government.
And it is not just the country that is changing, but the world around it. Ronald explained that ASOEX set itself both short and long term goals several years ago about what markets it wanted to ship to outside of its own, beginning with the Latin Americas and expanding outward to places such as North America, Europe, and beyond.
While much of this, Ronald says, has been a positive development for Chile, such as the strength of the U.S. dollar and demand for what they can provide to help strengthen the economy, it also presents more challenges.
“Regardless of what market we are operating in, there is a lot more competition than there was 15, 10, even five years ago,” Karen Brux, Managing Director of the Chilean Fresh Fruit Association, elaborated. “We are constantly having to raise our bar because we need to have better quality and better produce. The growers are constantly meeting and trying to find out; how can we better serve our markets? Because that is the key, essentially, to staying ahead.”
In staying ahead, some of those short term goals have been realized, such as Chile’s exponential export growth just in the past few years. Currently, Ronald said, they are working with China to further broaden their horizons and meet the demand of even more consumers.
“It’s not easy to deal with different countries, different ideas and points of view,” Ronald tells me of working with foreign markets. “But, we trust in the Chinese authorities in terms of conditions to allow a transparent market and free trade competition. Many of these free trade agreements that were, 15 years ago, long-term goals have come true.”
And now that those have come into fruition, Ronald seems optimistic for new long term goals to kick into gear. Labor regulations, health initiatives, and public education are a few that he remains confident will, he said, be addressed or even met with in the next few years.
As for the growth of the country’s fruit industry?
“Another important factor might be India,” he says thoughtfully, commenting that other big markets like China tend to be more consistent. “But India is constantly changing, even in the last year. They could be a very important factor.”
With a constant eye to the future and the desire to continue its growth, we will continue to follow the Chilean and other influential produce markets, so keep checking in with AndNowUKnow.
MINNEAPOLIS, MN - According to new information, SuperValu is now considering a complete sale of its Save-A-Lot grocery chain, as opposed to a spin-off of the business as was previously reported.
SuperValu has received interest in Save-A-Lot from several private equity firms, people familiar with the matter disclosed to Reuters. Supervalu will reportedly consider offers after registering the unit with regulators for a spin in early 2016.
Reuters says that while a spin would be more tax-efficient for SuperValu, the sources believe that these private equity firms are hoping to take advantage of a “tax shield” that was put in place from a loss in SuperValu's $3.3 billion sale of supermarket retailer Albertsons Inc. and other stores to Cerberus Capital Management LP in 2013.
As we’ve previously reported, SuperValu announced in its July Q1 2015 financial report that it was exploring a spin-off of Save-A-Lot, with CEO Sam Duncan saying that that the company believes a separation of the business could allow the banner to better focus on its operations and “pursue strategies specific to its business characteristics and growth potentials, for the benefit of our shareholders, customers, licensees and employees.”
The sources are now saying that buyout firms would still have to convince the company that their offers would represent better value to SuperValu shareholders compared to a spin, some adding that the business could be valued at more than $1.7 billion.
AndNowUKnow will continue to update you on SuperValu’s plans as they’re announced, so stay tuned.
BAKERSFIELD, CA – Rio King and RIOblanco, two of Chile’s top grape producer-exporters, are joining Sun World’s family of marketer licensees.
Both companies will add “noteworthy supply and distribution capacity” to Sun World’s proprietary branded grape program, said Executive Vice President, David Marguleas.
“As a result of their involvement – and the tremendous capabilities of our existing Chilean licensees – retailers and consumers around the world will have increased access to Sun World branded grapes,” Marguleas said.
Rio King is a fully integrated export company with farming operations on 3,700 hectares in Chile and Peru, importing offices in USA and China and a first-class worldwide customer network.
RIOblanco is a family-owned company focused on growing, packing, and exporting premium fruit primarily from its own farms.
The two new marketers have been granted a license to distribute fruit from new varieties developed by Sun World and to use Sun World’s brands, including MIDNIGHT BEAUTY®, SCARLOTTA SEEDLESS®, AUTUMNCRISP®, ADORA SEEDLESS®, and SABLE SEEDLESS® in the marketplace, according to a press release.
Both companies join Sun World’s existing portfolio of marketer licensees, including Subsole, Unifrutti, Dole, Compania Frutera Santa Maria, Gesex, Santa Elena, and Exser.
SAN ANTONIO, TX – NatureSweet is ushering in the holidays with its recently debuted, limited-edition winter packaging.
The new package, available for the company’s Cherubs®, Glorys™, and SunBursts®, features a cheerful snowflake pattern and festive gold labels to deck the produce aisles with some holiday cheer this year.
In addition, NatureSweet will ship out colorful three-case shipper displays and mini pallet wraps also featuring a festive, seasonal look. POS cards and recipe tear pads will also be included to catch the eye and encourage shoppers to add NatureSweet tomatoes to their seasonal menus, according to a press release.
“We hope that our consumers revel in the spirit of the season with our tomatoes gracing their tables, whether it’s set for a special family gathering or a simple meal on a cold winter night,” said Michael Joergensen, NatureSweet’s Vice President of Marketing.
This promotion will last until December 18, 2015.
Hand-picked year-round and brix-tested for sweetness, NatureSweet gives each of its greenhouse-grown tomatoes extra love and attention to ensure consumers remain satisfied regardless of the time of year.
Don’t miss this latest holiday offering from NatureSweet!
YUMA, AZ – Though the unseasonably warm weather and the rain provoked a quicker end to the season in Salinas, the cooler weather in Yuma is resulting in a slower crop this time of year. As resilient as ever, however, growers are tackling these challenges head-on to try and meet the holiday pull.
Nighttime temperatures in Yuma lately have been hovering in the low thirties, with daytime temperatures in the seventies. The high winds that growers are currently experiencing will likely bring cooler weather and the possibility of freezing temperatures, which tends to slow growth and could possibly create a gap.
Nevertheless, quality continues to improve for items such as lettuce, celery, broccoli, cauliflower, and more. Growers are trying to stay as optimistic as they can with the holidays quickly approaching and volumes still being on the light side, as expected.
“Volumes look to be very similar to last year,” C.R. Waters, Desert Operations Manager at Duda Farm Fresh Foods, tells me. “Availability will be tight for the next couple of weeks as volume will be lighter than expected due to weather.”
Duda Farm Fresh Foods has just started harvesting and is still planting. Iceberg lettuce started on November 2, while romaine/mix leaf started November 9. The harvesting is about ten days ahead of schedule right now.
“We are close to planned volumes,” he continued. “We will have promotable volumes of celery going into the holidays and New Year.”
Doug Classen, Sales Manager with The Nunes Company, the shipper of “Foxy” brand fresh produce, had a similar sentiment with the weather in Yuma so far.
“We are nearly complete with our transition to Yuma. We are seeing multiple weather-related challenges on the crop that have affected yield, and therefore, markets across all categories,” said Classen. “We expect these challenges to continue until the first of the year under the current weather conditions and holiday pulls.”
It’ll be a bumpy road the next few weeks with Thanksgiving almost here, but the moral of the story is to hang tight and get those orders in. Stick to AndNowUKnow for any further updates as we start heading into December.
SPOKANE, WA - It looks like the Cold Train versus Burlington Northern Santa Fe (BNSF) Railway saga will continue a little bit longer, with Cold Train now adding additional charges to its original $41 million lawsuit.
Filed in a United States District Court in Spokane, WA, Steven Lawson, the former President and CEO of Cold Train, LLC., and Mike Lerner, the Managing Member of Cold Train, LLC., this week have unveiled details about what they say are even more significant issues about BNSF actions, which caused Cold Train’s downfall.
Allegedly, and according to the amended lawsuit, BNSF engaged in “unfair and deceptive trade practices,” including but not limited to:
- Requiring Lerner, Lawson, and Cold Train, LLC. to agree to a 95% carriage requirement—effectively prohibiting Cold Train from using other rail carriers.
- Deceptively causing a significant slowdown in BNSF’s service schedules on its Northern Corridor line including the termination of an existing “Z train” service and replacement with a slower “Q train” service.
- Deceiving Lerner and Lawson into agreeing to a 72-hour service from Quincy to Chicago, before abruptly dropping its on time percentage (OTP) for the shipment to 3% by April of 2014. Cold Train’s business plan relied on allowing fresh produce to be directly loaded into a refrigerated container, delivered by truck to the intermodal terminal at the Port of Quincy, and loaded onto an eastbound train the same day.
- Persuading Lawson and Lerner to sell the Cold Train business to Federated Railways, Inc. (Federated) with promises that the sale would allow for further expansion of its business and traffic on the BNSF line from Quincy, WA to Chicago, IL.
- The sale was worth approximately $32 million at closing and another $10 million from the ongoing operations, and also and was contingent upon Lawson accepting ownership in the new entity, a multi-million dollar cash payment and a long term employment contract to remain as President & CEO of new entity, Federated Cold Train. The total benefit to Steven Lawson personally was in excess of $21 million, separate and apart from Cold Train.
- BNSF continued to encourage Lawson, Lerner and Federated to proceed with the sale and promised another 5 year term of the existing Z train service at Quincy, WA. Immediately thereafter, as a direct result of the encouragement, Federated provided Cold Train a $1.25 million capital infusion based solely on that meeting and then publicly announced that it was acquiring Cold Train.
According to the amended lawsuit, BNSF informed Cold Train that it was cancelling the 72-hour service and substituting a new 125-hour service nearly doubling BNSF’s rail transit time. This caused Cold Train’s costs of equipment, fuel and other costs to double, and caused many customers, especially fresh produce shippers, to look for other transportation service options.
BNSF’s business decision to direct its resources away from Cold Train resulted in millions of dollars in operating losses and millions of dollars in capital investment losses, they say, and as a direct result of the service change and BNSF’s refusal to revise its wrongful 95% carriage requirement despite promises to the contrary, Federated withdrew its offer to purchase Cold Train. Lawson and Lerner say this resulted in the two walking away with nothing from a business that had been worth over $40 million prior to April 24, 2014.
Furthermore, the termination of the Z train service left numerous Washington State residents unemployed as well as many Washington State companies and other secured and unsecured creditors with significant receivables and debts.
The amended lawsuit states that BNSF’s actions were deliberate, and contrary to its known promises and representations to Cold Train, Mike Lerner, and Steve Lawson.
Currently, several parties are challenging the original BNSF settlement with Great Western Bank in a Kansas Court, but for more updates on this lawsuit as they’re unveiled, check back with AndNowUKnow.