AUSTIN, TX – Whole Foods may be looking to revamp its pricing in the near future as the chain looks to increase shareholder confidence in its brand.
“Some would say that increasingly everyone is selling the same food and that price is all that matters,” said Co-CEO John Mackey in a conference call with analysts, according to Reuters. “We are going to be competitive on price where we need to be, but first and foremost, the Whole Foods Market brand stands for the highest quality, selection, and service.”
The natural and organic grocer has been facing increased competition lately, but remains steadfast in its resolve to grow and make progress on a number of its strategic initiatives without sacrificing its image. Such initiatives include new cash register systems that would result in faster checkout lines, a loyalty program, and competitive price-tracking tools.
As part of its Q4 2015 financial results announcement on Wednesday, Whole Foods announced that it would be initiating a $1 billion share buyback program, dividend increase, and new capital structure. In addition, the company will enter into a $500 million five-year revolving credit facility.
“We believe this capital allocation strategy positions us to take advantage of attractive conditions in the debt markets and lower our overall cost of capital, while preserving ample financial flexibility for future growth initiatives,” said Glenda Flangan, Executive Vice President and CFO.
During its fourth quarter, the retailer said that its total sales increased 6% to a record $3.4 billion.
“We recognize the need to move faster and go deeper to rebuild traffic and sales and create a solid foundation for long-term profitable growth and are taking the necessary steps to better communicate our differentiation, improve our value perception, and fundamentally evolve our business,” Co-CEO Walter Robb said in a press release.
Other highlights from the fourth quarter include:
- Comparable store sales on a constant currency basis decreased 0.2%
- EBITDA were $196 million, or 5.7% of sales
- Cash flow from operations was $132 million
Over the fiscal year, Whole Foods opened a record 38 new stores and still has plans to hit its goal of 1,200 U.S. stores.
The company announced that it has signed leases for four new stores in Cleveland, Fort Myers, Florida, Sudbury, Massachusetts, and Wheaton, Illinois. The stores in Cleveland and Wheaton will be relocations.
Whole Foods also announced that it be launching three new “365 by Whole Foods Market™” stores. These new locations will be in Cedar Park, Texas, Cincinnati, and San Francisco.
Other stores previously announced would be in Bellevue, Washington, Houston, Portland, Oregon, and Santa Monica, California. The first 365 store will be located in the Silver Lake neighborhood of Los Angeles.
“We’re excited to have eight leases signed for our new store concept,” said Jeff Turnas, President of 365 by Whole Foods Market. “We continue to look for strong markets and locations where we can appeal to new customers seeking a fresh, healthy, and convenient food experience.”
The first three 365 by Whole Foods Market stores are expected to open in 2016 and up to 10 stores are expected to open in 2017.
For the latest on Whole Foods and the growth of its new millennial-focused format, keep checking in to AndNowUKnow.
CHARLOTTE, NC – Chiquita saw a distinct improvement on its net income in its third quarter over the same time last year, but lower fruit volumes and weather impacts had a negative effect on its net sales.
According to a U.S. Securities and Exchange Commission (SEC) filing, the company reported its net sales for the quarter decreased from $738 million to $674 million.
Net income, on the other hand, was reported at $10.2 million from Q3 2014's loss of nearly $18 million.
Chiquita’s “salads and healthy snacks” segment was the only category to see an increase in net sales for the quarter, which was reported at $237 million compared to Q3 2014's $234 million. This slight boost was because of increased retail volume, improved product mix, and more efficient use of trade spend, offset by a decline in sales volume for the food service and processed fruit ingredient business.
Its banana business, however, suffered a 13% decrease, dropping to $416 million from $477 million a year earlier as a result of lower volume sold in North America and the impact from foreign exchange offset slightly by higher banana pricing.
The “other produce” segment fell to $20.8 million from last year’s $26.8 million as a result of lower volume.
As we previously reported, Chiquita has plans to set up a new division headquarters in Orlando, Florida following its merger agreement with the Cutrale and Safra groups.
Total costs associated with the transition are expected to be within the range of $25 to $40 million.
Stay tuned to AndNowUKnow as we continue to follow Chiquita’s financial performance in Q4 2015 and beyond.
ORLANDO, FL - Harris Teeter’s Aaron Franklin has been honored by the National Mango Board (NMB) as its 2015 Mango Retailer of the Year.
The winner was announced during the board’s Annual Mango Industry Reception 2015 last month during PMA’s Fresh Summit Convention & Expo. From each region of the U.S., the NMB selected four Mango Model Retailers, and chose the Mango Retailer of the Year from amongst this group, according to a press release.
“Retailers play an essential role in the mango industry by being supporters of our mission to increase fresh mango awareness and consumption in the U.S.,” stated Rachel Muñoz, Director of Marketing at the NMB. “These four retailers truly embody enthusiasm and excitement when selling and promoting mangos. Having these partners that support the mango business with such motivation is truly an inspiration for retailers across the country.”
The Mango Model Retailers for 2015 are Deb Kreider, Paul Chiavacci, and Tim Royer, Ahold; John Savidan and Keith Tsuchiyama, Bristol Farms; and Michael Vesely, Jewel-Osco.
These retailers were honored for their outstanding support of the mango industry and for their dedication in growing the mango category at their given locations. This program identifies retailers that go above and beyond to support to the mango industry.
So what does it take to be a Mango Retailer of the Year and a Mango Model Retailer?
- They produce impressive mango sales and volume increases.
- Through NMB funding, they engage in effective, high quality and creative promotions that connect with shoppers on multiple levels.
- They take the initiative to creatively promote mangos without NMB funding.
- They are responsive to NMB communication, and they follow through on commitments.
- They facilitate mango training, and inspire their associates to handle, merchandise and promote mangos more effectively.
- They are aware of market forces, and promote mangos in all seasons.
Congratulations to Aaron Franklin and also to Deb Kreider, Paul Chiavacci, and Tim Royer, from Ahold; John Savidan and Keith Tsuchiyama from Bristol Farms; and Michael Vesely, Jewel-Osco!
PLANT CITY, FL - Family-owned and operated Astin Farms, is continuing to expand its operations on the heels of a recent 200-acre farmland acquisition in Plant City, Florida.
Astin is a fairly young company when compared to many in our industry, but has already begun to make its mark since the company began in 2001. Recently the company added 10,000 square-feet of refrigerated cold storage space and two new cooling units to address the growth of Astin’s conventional and organic strawberry program.
“This new expansion will now allow us to pre-cool around 13,000 cases at a time. Having increased, efficient pre-cooling capacity will significantly improve the overall quality of the fruit,” Shawn Pollard, Sales Manager, tells me. “This new state-of-the-art addition along with our growing acreage, is testament to the growth and success of Astin Strawberry Exchange.”
The new cooling space is slated to be up and running by mid-December.
Shawn started with the company during its entry into the industry in 2001 and is nothing short of ecstatic about Astin’s evolution. “We started with a few hundred acres and now our operations encompass about 1,350 acres. It is an amazing company to be a part of,” Shawn adds.
In addition, Astin will have 160 acres of blueberries this spring and just recently planted another 100 as they look to grown the program. Astin produces over 40 million pounds of fruit each season which is sold across the United States with some exported to Canada.
Keep an eye out for Astin strawberries as the program continues to grow its market share in the strawberry category.
MCLEAN, VA - With some deals in the works and eyes looking forward, Gladstone Land Corporation appears to have a big quarter ahead, according to its most recent financial report.
"We're entering the fourth quarter of 2015 on a strong note, having invested about $30 million into five new farms during the quarter [3,413 total acres], including our first farms in the Midwest and our first almond tree farms, which we're expecting to result in nice returns for us,” David Gladstone, Company's Chief Executive Officer, said in the release. “We also just acquired one new farm in Florida for about $4 million, and we have an additional $17 million of potential farmland purchases under signed purchase agreements that we are working towards closing over the next several months, so we expect to be very active in closing out 2015.”
Of the three acquisitions the company made in its third quarter, two remain open, however the company stated that it remains confident that those, too, will close successfully. It did state, however, that these agreements are subject to customary conditions and termination rights.
Those three deals combined equate to 1,688 acres of farmland in both Florida and Georgia for $7.7 million, or just over $4,500 per acre.
Other highlights for the company’s third quarter of 2015 included:
- Financing Activities: Obtained $27.7 million in aggregate, of new, long-term borrowings at a weighted-average interest rate of 3.1%, which rates are fixed for terms ranging from three to five years.
- Also amended the borrowing facility with our largest lender, which should result in annual interest savings of approximately $190,000.
- Distributions: Declared and paid monthly cash distributions of $0.04 per share of common stock for each of July, August, and September.
Gladstone Land also initiated an at-the-market program, allowing it to issue and sell up to $30 million of its common stock.
“After putting the money raised in our second-quarter equity offering to use, we saw our net asset value per common share increase by 22 cents, up to $13.64 as of September 30, 2015,” Gladstone said. “And we expect to see this mark continue to increase in the future due to portfolio appreciation and our ability to put high-quality farmland on our books."
The CEO concluded that the company’s operating expenses are beginning to stabilize, and that he expects a larger portion of rental income from new acquisitions in the future to go directly to earnings as the company continues to borrow from less expensive lending sources.
WESTLAKE, CA - With the single, natural ingredient of fresh fruit, Crunchies Natural Food Company looks to bring produce further into the consumers’ snacking habits with its line of all-natural, freeze-dried fruit snacks.
After harvesting, Crunchies fresh fruits are frozen almost immediately, undergoing a low-pressure drying process to remove frozen water as directly as steam, bypassing the liquid state and allowing the product to retain almost the same nutritional value as whole fruits.
“We are simplifying the lives of active, health-conscious shoppers by offering a snack that’s hands-down the best in terms of ingredients, nutrition, taste, and convenience,” Scott Jacobson, President and CEO of Crunchies, said in a press release. “Our hope is that, by giving people a new way to enjoy pure fruit, we can help them make better choices for themselves and their families.”
The flavorful snack line includes:
- Strawberries
- Mango, Pineapple
- Blueberries
- Raspberries
- Grapes
- Cinnamon Apple
- Strawberry Banana
- Mixed Fruit
With the motto “Let’s get real,” the company uses a freeze-drying method to ensure that the fresh fruits’ nutritional value remains, while still enhancing shelf-life.
Not only does this snack line provide consumers with a snack that is only around 40 calories, satisfying a health conscious market, but Crunchies also maintains close relationships with international farmers and suppliers so that buyers and customers can be confident about the origins of each snack.
While the company respects its American roots, it stated that it supports local economies around the world while still maintaining most of its freeze-drying operations within the U.S.
These freeze-dried fruit snacks are available in both single-serve packs and larger grab-n-go resealable pouches, with no added sugar, artificial flavors, or coloring. The product is non-GMO, gluten-free, vegan, kosher and halal certified. Crunchies’ snacks are available in stores nationwide for an SRP of $4.99 – 5.99 for resealable pouches and $1.25 for single-serve bags.
DAVIS, CA – Engage3, the company behind the popular personalized shopping app ShoppingScout, has just unveiled its latest platform to give retailers insights into competitors’ pricing.
Dubbed “MissionControl,” this competitive intelligence platform enables the planning, scheduling, execution, reporting, and modification of online and in-store competitive data collection.
Engage3’s robust product and pricing database allows retailers and manufacturers to gain accurate observations about a competitor’s pricing strategies, all while eliminating any doubts or inconsistencies.
“We’re very excited about the opportunities that MissionControl has opened up,” said Steve Vallance, Vice President of Purchasing at Cardenas Markets. “Engage3’s platform has significantly enhanced our competitive visibility across all of our markets by reducing the time it takes to understand and respond to our competitors’ pricing, thereby enabling us to maintain our intended price image. It’s also helping us understand our competitors’ private label strategies, which can be invaluable.”
Members can schedule and assign price shops to store associates or 3rd party vendors, and monitor real-time progress across all active projects. MissionControl supports inferred mapping of comparable brands, explicit mapping of comparable brands, and mapping store-level assortments and planograms.
Using proprietary algorithms and advanced statistical modeling for accurate pricing data, MissionControl optimizes shop-list sampling, maximizes ROI, and minimizes sampling costs.
MissionControl currently supports pricing decisions and competitive insights for a member base with approximately $20 billion of revenue under management.
Inaccurate pricing data has a direct impact to a retailer’s bottom line, which in some cases, could be over 40 basis points of sales in profit for a retailer, Engage3 Founder Ken Ouimet said in a press release.
“We leverage mobile technology, big data, and our deep domain experience to remove dependencies that slow down the competitive shop process while managing increasingly complex price shop methodologies to improve accuracy, find rates, and item comparability,” said Ouimet.
Understanding competitive data is crucial for success in today’s marketplace, and Engage3 looks to leverage its unique platform to give retailers an edge in pricing.
MissionControl v1.0 is now available. For more details, contact [email protected].
BAKERSFIELD, CA - This month, while a great time to promote fruits and vegetables, is also one in which America thinks of those that do not have the same access to those healthy foods that others do.
“I’ve been in the produce business my whole career, and one day on a plane I got this vision to do something,” Bret Sill, Founder and Director of Morning Star Fresh Food Ministry, an organization that seeks to provide healthy foods and anything else struggling families might need. “These families can’t go in and buy fruits and vegetables because, when on a limited income, they are going to buy what’s cheap - chips and crackers that are going to go further along than apples or a bag of lettuce.”
Using the skills and connections he developed in the produce industry, Bret has built a network of support throughout Bakersfield, CA, to provide fresh fruits and vegetables to those who could not otherwise afford them.
A number of growers have joined Morning Star to help provide fresh fruits and vegetables to the cause, including Anthony Vineyards, Bolthouse Farms, Country Sweet Produce, Giumarra Vineyards, Grimmway Farms, Paramount Citrus, Sunview Marketing, TD Produce, and many others.
“We are blessed to have some really great growers help us in this endeavor and provide with fresh produce,” Bret said of those that have joined the push.
Now Morning Star has joined the local turkey drive, Pheasant Hunt, setting a new and ambitious goal: to donate 4,000 turkeys and give struggling families a happy Thanksgiving.
“We want the support of our local community to come out and support this fundraiser and, in particular, to help us reach more families,” Bret tells me of the drive to provide these turkeys to those who need them. “To minister and really make this love for Thanksgiving a really special year.”
While Morning Star has previously been involved in the drive, this is its first year spearheading the fundraiser. “We’re not going to be just another food ministry, but one that will serve these families and will look to feed them both physically and spiritually,” Bret said.
So, not only will the ministry be collecting donations, but will also be buying up turkeys to deliver to families as needed: raw if the family has means to prepare it, cooked if they do not.
The drive takes place this Saturday, November 7th, in Bakersfield, CA. For those interested in finding out how they can help in making this a great holiday for those who struggle all year long, you can reach out to Morning Star directly for more information by emailing [email protected].
To donate to the cause, please visit morningstarfresh.org.
WENATCHEE, WA - CMI is about 60 days into this season’s apple crop, and reports that Nielsen data is showing a shift in consumer apple demand.
One thing that has been noted, according to a press release, is that the Ambrosia variety had one of the largest sales increases in the category, selling at roughly $2.40 per pound, one of the higher retail prices for September of any apple.
“Of the apples that sold over $2.00 per pound, 14 out of 15 had increased dollars for the period. Of the apples that sold at $1.50 per pound or lower, only four had increased sales,” Don Patella, Regional Marketing Director for CMI, said, noting that Nielsen data reflects that the McIntosh saw a year over year sales slip of nearly 10% despite being one of the lower priced apple options.
“The Nielsen data continues to show that consumer purchase priorities are shifting in the apple category,” Steve Lutz, Vice President of Marketing, reported. “Consumers are changing which apples they buy and demonstrating they will pay a premium for the products they really like.”
A smaller Washington apple harvest is driving tighter supplies and higher prices, according to the company, resulting in slower sales on many traditional varieties.
“It is evident that discount pricing alone will not build a healthy category in the coming year,” Patella said. “The real opportunity this year is making sure stores have the right products and position on the shelf. More importantly, stores need to review shelf allocation to make sure they have the right amount of space dedicated to these hot emerging varieties.”
Nielsen data showed that pricing shifted at the retail level within the first few weeks of the season, reflecting that from the initial kickoff through September 26 the U.S.’s total apple sales declined by 2.6% while volume dropped by 3.9%. The report also noted that average retail pricing for the total U.S. moved up 1.4% to $1.54 per pound.
CMI suggests retailers focus on emerging varieties that are propelling the category whose double digit sales helped offset the category’s decline overall. Among those are Honeycrisp, Pink Lady, Ambrosia™, Sweetango, and KIKU®, which CMI reports all posted strong sales increases over last year for the start-up period through September.
ORLANDO, FL – The holidays are fast approaching, and Produce for Kids is launching a variety of tools to keep fruits and veggies top of mind for families throughout the rest of the year.
This holiday promotion includes a 12 Weeks of Slow Cookers giveaway, the third annual #FestiveFlavors Twitter party, a dedicated Ask The Expert meal planning session on the Produce for Kids Facebook page, the Festive Flavors free downloadable e-cookbook, a blogger, campaign, and dedicated overall communication strategy to elevate the #FestiveFlavors hashtag, according to a press release.
“The holidays are a crucial time for the sale of fresh produce and can make or break sales for the year,” said Trish James, Vice President for Produce for Kids. “It’s important to us to spread the healthy eating message year-round while supporting the sales efforts of our partners.”
Produce for Kids has already kicked off the holiday festivities by launching its 12 Weeks of Slow Cookers giveaway, which asks consumers to re-tweet the sweepstakes or take a photo of their slow cooker recipe and tag Produce for Kids for a chance to win a slow cooker.
Next week, on November 11 at 9:00pm ET, Produce for Kids will host the third annual #FestiveFlavors Twitter party alongside Naturipe®, Crunch Pak®, and D’Arrigo Bros. of CA. Attendees can win prizes, share recipes, tips, and healthy holiday ideas.
Then, on November 17 from 1:00-2:00 pm ET, Produce for Kids will host the very first Ask the Expert Facebook event where anyone on Facebook can have their holiday meal planning questions answered live by meal planning expert Brenda Thompson of Meal Planning Magic.
Last, but not least, the Festive Flavors: 12 Fresh Takes on Holiday Favorites e-cookbook will highlight fresh produce as main ingredients to re-create twelve holiday classics. Recipes include Sweet Potato Casserole and Cranberry Apple Crisp, as well as festive snack ideas and meal planning tips.
With all this and more, Produce for Kids is confident that retailers can help keep produce sales up all holiday long.