ISSAQUAH, WA - Costco has announced its financial results for its fourth quarter 2015 and fiscal year 2015, showing better-than-estimated earnings and increased membership sales.
The company also announced that it will further emphasize fresh produce and organics, providing more of its walk-in cooler spaces. When asked about Costco’s proposed remodels, SVP and CFO for the company, Richard Galanti, explained, “At just our Costco across the street we’ve added 10 to 15 thousand feet and greatly expanded the walk-in coolers for produce and dairy. When you’re doing $300 million in some of these units, you can really drive incremental and good sales by expanding and adding refrigeration and fresh foods.”
Galanti also added that organics will also be a piece of that expansion.
Net income for Q4 rose 10 percent to $767 million, or $1.73 a share, the company’s report said Tuesday, while analysts surveyed by Thomson Reuters projected a profit of only $1.66 a share on revenue of $36.21 billion. Costco’s sales rose 1 percent to $35 billion, helped by a 2.2 percent gain in membership fees.
The company has 686 membership warehouses around the world and boasts a loyal membership with a renewal rate of about 91% in the U.S. and Canada and about 87% worldwide as of 2014, according to a regulatory filing. The company said it plans to open up 12 additional warehouses (including one relocation) before the end of calendar-year 2015.
Other highlights from the report include:
- Net income for FY2015 was $2.38 billion, or $5.37 per diluted share, compared to $2.06 billion, or $4.65 per diluted share in FY2014.
- Net sales for Q4 were $34.99 billion, an increase of one percent from $34.75 billion in fiscal 2014.
- Net sales for FY2015 were $113.67 billion, an increase of three percent from $110.21 billion last year.
Keep following AndNowUKnow for more industry financial news.
GRAND RAPIDS, MI - After almost a decade leading Meijer Inc., President James Kevin "J.K." Symancyk has decided to resign.
MiBiz reports that the longtime executive, who worked a variety of leadership positions with Meijer before ultimately taking the up the post as President three years ago, has been with the company since 2006.
Symnacyk is reportedly moving on from both Meijer and the produce industry, having accepted a position with academy sports and outdoors company Academy, Ltd. as its new President and CEO.
"The future for Academy Sports + Outdoors is truly limitless, and I'm eager to ensure we continue offering customers convenience, a broad selection of quality products and exceptional customer service as we strive to remain the low price leader in our category," Symancyk said in a statement, according to an MLive report.
“While we will miss working with J.K., we are very grateful for the nine years that he gave us his talent and leadership, during which the Meijer team has produced record sales and profit, as well as increased market share,” a spokesperson for Meijer wrote in an email to MiBiz. “We wish J.K. and his family all the best as he takes on this new challenge.”
Meijer has pursued a $750 million expansion plan into Wisconsin with Symancyk at the helm, and while the company has not yet released any candidates to succeed him it stated it will continue to focus on furthering its growth.
“In the near future, we will be sharing more information about our path forward,” Frank Guglielmi, Spokesman for Meijer, wrote, according to MiBiz. “We have a great senior team and we know our continued focus on serving our customers will allow us to continue to grow and prosper.”
Symancyk's last day with the retailer is October 9th. AndNowUKnow will continue to report on this story as more details develop.
BAKERSFIELD, CA - Sun World International, LLC and Executive Vice President David Marguleas announced the company will be expanding its proprietary stonefruit line by adding six more companies as licensees, creating greater availability and distribution reach for products like BLACK DIAMOND®, HONEYCOT®, SUPER STAR®, and BLACK GIANT®.
The newly appointed stonefruit licensees include two Australian marketers, three Israeli packer-marketers and a Chilean distributor, and will also now be able to market Sun World’s branded stonefruit that was mentioned above, Marguleas said.
The new licensees consist of six marketing companies:
- Servicios Chilfresh Ltda., is based in Chile’s Region VII in Curico, is owned and managed by Andre Luteijn. The company was founded in 1993 and specializes in Asian markets.
- W.A. Farm Direct, is a Perth-based horticultural marketing company owned and managed by John Mercer, his son Bradley Mercer, and daughter Jenny Mercer.
- Mercer Mooney, also based in Perth, has bee in business for 100 years. Headed by General Manager Paul Neale, the company has around 800 growers supplying a diverse range of fruit and vegetable lines.
- Ayelet Hashahar, a Kibbutz (collective community) in northern Israel, was established in 1915 and grows, packs and ships apples, pears, avocado, pomegranate, almonds and stonefruit. Its manager is Eyal Carmi.
- Rafkor, located in Rosh Pina in northern Israel, has been in business for 43 years and is managed by Gruner Benbenisti. It is privately owned by its grower members and packs and markets stonefruit, pears, citrus, pomegranates, and kiwifruit.
- Rani and Shai Barness, a third generation family grower-packer-marketer located at Moshav Bitzaron in south-central Israel that handles low-chill stonefruit as well as pomegranates, avocado and persimmons.
“These leading stonefruit companies, along with their producers, will ensure that supermarkets and consumers have even better access to our branded lines of proprietary fresh apricots, plums, peaches and nectarines,” Marguleas said, adding that the six new appointees join 19 existing Sun World stonefruit licensees operating in most major fruit growing regions of the world.
Sun World's fruit licensing program involves more than 1,500 producers and marketing companies, according to a press release, and operate in most of the world's major fruit-growing regions.
OXNARD, CA - Kale aficionados, rejoice! National Kale Day is just a week away, and to celebrate, San Miguel Produce is making it rain kale across California as part of its second annual “Give ‘em Kale” campaign.
San Miguel Produce is setting its sights high this year by giving away more than 12,000 bunches of free kale, a feat that would more than quadruple last year’s record. Last year, the company handed out 3,000 bunches of free kale in Ventura and Los Angeles Counties.
Check out the video recap below.
To help reach its goal, San Miguel has initiated a three-prong approach. First, the company partnered with Food 4 Less Los Angeles, Fresh & Easy Los Angeles, and Safeway San Francisco to give away kale at five participating locations from each retailer. Secondly, members of the Ventura County Farm to School Collaboration will be giving away kale to students and parents at local schools. And finally, building off their success last year, employees from San Miguel will hit the streets in the Ventura and Los Angeles Counties to once again hand out kale to morning consumers as well.
“I think we really brightened up everyone’s morning commute and had a lot of fun interacting face-to-face and on social media,” said Garrett Nishimori, Marketing Manager and Corporate Chef for San Miguel. “We are excited to build on last year’s events and are fortunate to have such great partners donate their time and effort to help us celebrate this grassroots movement for a healthier America.”
You can help spread word of the campaign by using the hashtag #NationalKaleDay and #KaleDay2015 and tag @cutncleangreens and @sanmiguelproduce on Facebook, Twitter, Instagram, and Pinterest.
NORTH AMERICA - With blueberry growers wrapping up their North American production and getting ready for the transition into South America, now is an ideal time for retailers to lock in supplies during the transition. With local supplies in both the Pacific Northwest and Michigan winding down, a tightening market and higher pricing have been a notable side-effect of the transition.
Mario Flores, Director of Blueberry Product Management at Naturipe Farms tells me that production in Michigan is in its final two weeks of production, making it an excellent time for retailers to take advantage of late supplies to bridge the gap between Northern and Southern Hemisphere production.
“Before the South American season, Michigan Blueberries could make for a very good situation for retailers to bridge the gap between North American season and South American,” Mario says. “Demand has still been great despite the wind-down, and we’ve been seeing the high line of FOB pricing for blueberries even without strong promotions.”
The USDA reported blueberry prices on flats 12 6-oz cups with lids out of Michigan at $28.00 - $32.00, as of September 29, 2015.
Lori Hickey, Marketing Manager for HBF International, has also seen higher pricing during this transitional period, she tells me.
“We have for the most part finished up our Northwest season at this time and will be transiting to our Argentina program over the next few weeks,” Lori says. “As supply domestically has dropped off over the past few weeks the price has been going up. We will project seeing that continuing to be the case for the next few weeks as we wait on the weather challenges that have hit the Argentina growers.”
Lori explained to me that Argentinean blueberry production has been delayed due to rain and cooler weather, but should be running strong in about three weeks which will help prices stabilize once that fruit is ready for harvest and supply picks up.
Driscoll’s is also anticipating a stabilization of market prices in the next few weeks, John Johnston, Driscoll’s, Director of Blueberry Business tells me.
“We expect market prices to decline in October as supplies from both South America and Central Mexico increase. For now, demand continues to exceed supply and blueberry pricing is increasing due to rapidly declining supplies in the Pacific Northwest, as the season ended two weeks earlier than normal this year.”
John tells me that the initial quality of Driscoll’s fruit out of central Mexico, Peru, and Chile has been excellent, and the company anticipates strong supplies from late September through March from these regions.
For more on the upcoming blueberry season and what to expect out of South America, stay tuned to AndNowUKnow.
BELLINGHAM, WA - While many Haggen employees are struggling since the chain announced it is completely withdrawing from the Pacific Southwest Market, those that joined the retailer from Albertsons and Vons could see a measure of relief.
Santa Barbara Independent reports that the Federal Trade Commission (FTC) approved Albertsons' application to rehire the employees that Haggen inherited when it first purchased 146 stores earlier this year. The ruling dissolves the antitrust restriction that would prohibit Albertsons, Vons, and Pavilions from employing former workers until one year after the 2015 divestiture.
According to the report, pharmacy staff still cannot be re-hired by their former employer, however, the union representing Haggen’s employees, UFCW Local 770, said in a press release that it continues to work with the FTC on lifting the restriction completely.
As we previously reported, Haggen recently announced that it was working with Albertsons to achieve this goal on the behalf of its employees, despite a recent feud between the two chains involving a law action filed for over $40 million in inventory unpaid and and a counter action of $1 billion in damages.
Now the report confirms that the FTC’s ruling could benefit as many as 6,000 Haggen workers who would otherwise be unemployed if the U.S. Bankruptcy Court approves the chain’s large scale closure, or would have been in violation of their original contract with Haggen.
We will continue to update you on the chain’s movements, as well as all other influential retail news, as it develops.
WASHINGTON - The U.S. Department of Agriculture (USDA) has cited Phoenix Produce Company, based in Chicago, Illinois, for failure to pay for produce.
According to a USDA press release, the company violated the Perishable Agricultural Commodities Act (PACA) when it failed to pay $987,843 to 17 sellers for 405 lots of produce. As a result, Phoenix Produce Company cannot operate in the produce industry until June 16, 2017, at which time it may reapply for a PACA license.
The company’s principals, Jason L. Cyscon and John A. Cyscon III, may not be employed by or affiliated with any PACA licensee until June 16, 2016, according to the release, and then only with the posting of a USDA-approved surety bond.
In the past three years, USDA resolved approximately 4,250 PACA claims involving more than $77 million. Its experts also assisted more than 7,000 callers with issues valued at approximately $110 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
NORTH AMERICA - Two tropical storms are predicted to bring heavy rainfall to North America this week—Tropical Storm Joaquin on the East coast and Tropical Storm Monty off the coast of Southern Mexico.
The newly formed Tropical Storm Joaquin, the 10th named storm of the season, is currently about 385 miles northeast of the central Bahamas, The National Hurricane Center in Miami reports, but forecast models are showing the system will strengthen slowly as it parallels the East Coast over the course of the next few days.
“There is some consensus among several models that this low will impact the DC Area this weekend, while others take the system northward into Long Island and Connecticut instead,” reports Roland Clark of the Weather Advisory Service. “There is also the possibility that the low will get entrained into an approaching frontal boundary and become swept out to sea.”
In the eastern Pacific, Hurricane Marty, now downgraded to Tropical Storm Monty, has been moving slowly toward the south-central coast of Mexico bringing heavy rains from Zihuatanejo to Acapulco.
Hurricane watches were put in effect for the areas between Tecpan de Galeana and Lazaro Cardenas, while a tropical storm warning was put in effect from Acapulco to east of Tecpan de Galeana and from west of Lazaro Cardenas to Punta San Telmo.
The Hurricane Center said Marty was expected to be just offshore of the southwestern coast of Mexico on Tuesday and Wednesday, while "only a small deviation" would bring the center onto shore. Forecasters from the center also warned of significant coastal flooding.
AndNowUKnow will continue to update as both of these storms continue to develop, so stay tuned.
DUBLIN, CA - iTradeNetwork, Inc., a leading provider of supply chain solutions for the foodservice and retail industry, is taking part in this year’s 2nd annual Tour de Fresh, which will be held Oct. 19-22 for a 325-mile, four-day bike ride. Benefiting the Let's Move Salad Bars to Schools campaign and presented by The California Giant Foundation, riders will navigate the roads from North Carolina to Atlanta, Georgia for PMA Fresh Summit 2015.
Ray Connelly, iTrade’s VP of Traceabilty & Merchandising, will be helping to coordinate the event and will also be riding his bicycle and rallying the troops.
“My goal is to raise funds to place at least one salad bar in a school. I’ve chosen the Mt. Diablo School District as the recipient of my fund raising efforts,” Ray tells me.
When I ask Ray why he is so passionate about the event and why it is so beneficial to the industry, he tells me that healthy eating is a something he takes very seriously and promoting good habits with our young people is very important during their early years.
“Many kids today may not have access to nutritious, fresh fruits and vegetables. Placing a salad bar at school offers healthy eating choices for our kids and can start the process to create good habits for lifelong benefits,” he says.
The industry has been fantastic at supporting this effort. The riders are raising money for this cause, and tax deductible donations can be made directly to any of the riders on the Tour de Fresh website.
Ray’s personal fund raising page for the Tour de Fresh can be accessed at www.crowdrise.com/rayconnelly. Also, follow Ray on Twitter @RayTrac.
“I will be making posts about the event and during the ride. My Twitter followers will be able to track my GPS location in real time as I ride through the Smoky Mountains from North Carolina to Atlanta, Georgia,” Ray says.
iTrade is an innovative company that provides a unique and essential service to numerous companies in the fresh food supply chain, and as Ray tells me, “iTrade shares a deep connection and commitment with the fresh produce industry and supporting the Salad Bar program was a natural choice. This is why iTrade has become an anchor sponsor for the Tour de Fresh.”
iTrade is a critical system, providing tools for supply chain efficiency across the global food and beverage industry.The company is a partner with the fresh produce industry and assists the grower/shipper, retail grocery, and food service communities to expand sales, facilitate better communication and is a key sales/procurement/logistics channel for approximately $300B of fresh food annually.
IRVINE, CA – The California Avocado Commission (CAC) has unveiled its PMA Fresh Summit plans for this year’s show in Atlanta, Georgia, and they include Top Chef Judge, southern-style restaurateur, and author Hugh Acheson.
“CAC is gearing up for 2016 with exciting plans and looking forward to meeting with retailers in our booth and at show events,” said Jan DeLyser, CAC Vice President of Marketing, in a press release. “Early indicators point to an excellent California avocado crop next season and Fresh Summit provides an opportunity to discuss planned harvest size, timing, and marketing support.”
To enhance and emphasize this opportunity, the commission has welcomed Chef Acheson to provide his signature by showcasing what California avocados can do when fusing them with southern cuisine for attendees to sample.
Chef Acheson is a partner and chef for several Georgia restaurants, including:
- 5&10 (Athens)
- The National (Athens)
- Empire State South (Atlanta)
- The Florence (Savannah)
In addition to currently starring on Top Chef as a judge, Chef Acheson competed in Bravo’s Top Chef Masters, authored the James Beard Foundation award-winning A NEW TURN IN THE SOUTH: Southern Flavors Reinvented for Your Kitchen, and has received a number of other accolades.
According to the commission, Chef Acheson is is a perfect fit for its Fresh Summit booth, where he will both engage with industry members and showcase California avocado recipes he created with the fresh flavors of the south at select times during Saturday and Sunday’s expo hours.
In his latest book, THE BROAD FORK: Recipes for the Wide World of Vegetables and Fruits, he even mentions California avocados.
CAC will also be able to share the latest category sales data and research with retailers, plus updates on the California avocado label project and some of its 2016 marketing program.
“The Commission also is excited that a California avocado recipe has been chosen as one of the 10 finalists in this year’s PMA Fresh Summit Sensory Experience Contest, which will be judged on October 23,” DeLyser added. “Our recipe also will be featured during the Fresh Ideas in Action reception following the judging.”
Supermarket Registered Dietitians, educators, and the media are all invited to visit CAC’s booth for all this, as well as to learn about avocado nutrition qualities, promotable programs, and more.
So while you’re at the PMA Fresh Summit in Atlanta, Georgia, on October 23-25, don’t forget to stop by booth #2647.