UNITED KINGDOM - With only one bidder remaining for its data branch Dunnhumby, Tesco may be scrapping the idea of a sale all together in a matter of days, sources say.
Tesco CEO Dave Lewis is expected to hold talks with colleagues and advisers later this week, Sky News reports, and will discuss the decision to proceed with a sale of Dunnhumby, which utilizes data gathered from the supermarket giant's Clubcard loyalty scheme.
Company insiders told the publication while no decision has yet been made the Dunnhumby's sale, Lewis has expressed he was more than ready to reach an ultimate verdict on the matter so he can refocus on how else to transform the company.
Price expectations for Dunnhumby have dropped from $3 billion to $1 billion since the sale was announced, and the number of potential bidders has dropped by a substantial number. Currently, the Financial Times names the one remaining bidder as British advertising and PR firm WPP, but it doesn't seem like Tesco execs are yet sold on forking over the business.
Sky News reports that it may be possible that WPP would opt for a partnership agreement with Tesco rather than a complete acquisition.
Earlier this month, Tesco announced the sale of Homeplus, its business in South Korea, for over $6 billion to MBK Partners-led consortium, with the retailer netting over $5 billion after taxes and transaction costs.
Currently, Tesco’s debt has reached over $33 billion, according to The Wall Street Journal, but this latest deal, as well as a potential deal for Dunnhumby could be vital for Tesco’s revitalization plans.
Stay tuned as AndNowUKnow continues to update you on this developing story.
PHILADELPHIA, PA - Procacci Brothers is continuing to enhance its sales team with the promotion of Carlos Rodriguez.
Rodriguez will now be taking up the mantle as Procacci’s new Director of Sales in its tropical produce department. Prior to this latest role, he was employed as a manager at Procacci Brothers’ store in the Philadelphia Wholesale Market (PWPM), where he had the opportunity to strengthen his skills in sales, customer service, procurement, receiving, and transportation, according to a press release.
Mike Maxwell, President, said he was thrilled to bring Carlos on board as a member of the sales team.
“It’s going to be very exciting to watch him flourish in this new role,” said Maxwell. “Our customers will soon come to know that they can trust and depend on Carlos. He’s a very sharp guy with a great work ethic.”
Rodriguez first joined Procacci in 2012 as a cooperative education student through Saint Joseph’s University’s Food Marketing program. Receiving much praise from George Binck, Executive Vice President at Procacci, he was later hired full-time in September 2014. It was during this time Rodriguez worked under the guidance of Mike Barber, Procacci’s Director of Banana Sales, to oversee quality control and inventory management for bananas and yellow plantains.
Having already displayed exemplary performance in various production, customer service, sales, and management roles, Procacci is confident that Rodriguez will be able to prove his worth as Director of Sales.
CEDARBURG, WI - A new record has been made for the produce books that would humble James and his giant peach, just in time for the Halloween season.
Illinois grower and factory worker Gene McMullen brought a gourd weighing over a ton to the Cedarburg Wine & Harvest Festival in Wisconsin, where officials clocked it at 2,145.5 pounds, according to Fox News.
With the previous U.S. record standing at 2,058 pounds, McMullen now holds the title for largest pumpkin in the U.S., having just fallen short of the world record by 177.5 pounds.
This still marks a huge win for the factory worker, who told the Associated Press, "I don't do anything different than any other growers do."
It is evident, however, that a lot of passion went into “not doing anything different” when viewing the reaction of the final count in the below video from weather.com.
McMullen was a return competitor, his last year’s entry weighed in at 1,600 pounds.
And while this victor may not hold the world title (yet), the post on Facebook above shows that second place is still a victory.
Congratulations, Gene, both on this sizeable achievement, and the amount of pumpkin seeds and pie you’re sure to be enjoying until Halloween does come!
U.S. & MEXICO - The organic category has seen immense growth in recent years, which has had a direct impact on growing practices and exports for our neighbors in the south. Erica Renaud, Regional Business Manager, North America for Vitalis Organic Seeds, the organic division of Enza Zaden, took the time to share with us some of the strides the country has made in this rapidly expanding category.
“The Mexican government has made two major regulatory changes in direct response to the growth of the organic sector,” Erica tells me. “After a decade long process, Mexico (SENASICA) has launched a domestic organic standard for organic production and processing, while almost simultaneously, SAGARPA has modified its mandatory chemical seed treatment requirement for imported seed.”
Recognizing the growth in the organic market and the potential for Mexican growers, organic growers needed easier access to organic and conventionally untreated seed in order to comply to organic standards. Through the modification of the seed importation requirement, organic growers now have legal access to a broader assortment of high quality organic seeds.”
Previously, Mexico’s import regulations prevented many organic growers from obtaining the seed necessary to meet the organic standards for the U.S., Canada, and the EU (which all require organic growers to use organic seed when commercially available). Chemical seed treatments, such as Thiram, are not permissible under global organic standards. Now, Erica tells me, that door is slowly being pushed open by the evident growth seen in the category.
“One of the major points Mexican growers need to consider is that, while organics is a burgeoning market, transitioning from conventional to organic production needs to be done slowly. There are many challenges in an organic production system that differ substantially from a conventional system, namely biological soil fertility management and non-chemical management of diseases and insects. If one does not develop their organic production area slowly, they risk failure and non-compliance to organic certification requirements, which could jeopardize the integrity of Mexican organic production for all growers,” Erica said.
Developing a longer term organic management plan supports the market demand that organic growers can supply retailers with a year-round production in consistent supply and quality.
Right now, organic is an industry grossing more than $60 billion per year on a global scale. Approximately $32 billion of that gross is within the U.S. As we previously reported, this is an 11 percent increase over the 2014 organic category as a whole, and fruits and vegetables make up the majority of sales by a wide margin at 36 percent.
Considering over 90 percent of Mexico’s organic produce is exported to the U.S., the interconnectedness of the markets is fundamental, Erica says.
Currently the country is reporting over 600,000 hectares in organic vegetable alone, and with the government acknowledging the category's growth with enhanced organic agriculture policies and the removal of trade barriers, that number will only continue to grow.
Top Seal packaging, one of the latest trends to hit the produce industry, is innovating the way companies are preserving the freshness of a variety of categories. Not too long ago, however, this was an idea that was an out-of-the-box concept that many considered, well, crazy. In AndNowUKnow’s sister publication The Snack Magazine, we sat down with Costco Wholesale's General Merchandising Manager, Oleen Smethurst, one of the champions for Top Seal technology's implementation in the produce industry.
Check out the full article in The Snack magazine by clicking here, or continue reading the full piece below.
To request a copy of The Snack magazine, click the green button below.
Top of Her Game
“Are you crazy?”
When Oleen Smethurst first began her push of the Top Seal packaging program, a few of her initial suppliers had this response.
“Those first critiques were that this innovation would not work. Years ago, peelable and peel-reseal technology was not achieving the same goals we are striving for today,” Oleen, GMM Produce, Costco Wholesale Canada, tells me. It’s been leaps and bounds since then, as Costco’s produce packaging has evolved across the board.
Oleen is one of the chief advocates of Top Seal technology and a driving force in its implementation across the produce industry. Technology has vastly evolved and as Oleen tells me, the packaging that people may be using as a reference from years ago, is not the packaging of today.
“When you replace clamshell lids with Top Seal you also reduce the plastic use by up to 25 percent."
Top Seal brings a host of advantages to produce, from creating higher product visibility to supporting the quality and freshness of the item. In addition, Top Seal promotes a longer shelf life by controlling the respiration rates with micro and macro-perforated film. Top Seal’s technology, also referred to as Heat Seal technology, can be utilized through a simple peelable format or peel and reseal, depending on the demands and uses of the product.
“When you replace clamshell lids with Top Seal you also reduce the plastic use by up to 25 percent, creating more sustainable packaging - a big talking point with members,” Oleen notes.
Top Seal aligns with North America’s drive toward sustainability across all industries by using more and more of the continent’s recyclable plastic bottles to lessen Top Seal’s environmental impact. For some suppliers, there is also the opportunity to transport more produce with Top Seal and its more efficient stackability component. The strength of the packaging allows more rows to be utilized and can travel well over longer distances. In addition, stackability provides a more effective use of retail shelf space. While the easy-to-open container provides quick access to produce, the flexible closure comes with the unique ability to reseal multiple times without losing functionality.
"I feel it is the right thing to do for the environment, our industry, and members alike."
One concern with similar resealable technology has been possible tampering during its journey through the supply chain. Peel and reseal features a tamper evident seal to lift member confidence in the integrity of the packaging.
“At Costco Wholesale Canada, we are hoping to transition as many commodities and vendors to Top Seal as possible. I feel it is the right thing to do for the environment, our industry, and members alike," Oleen continues.
When I ask Oleen how she discovered the innovation, she tells me that her journey began in the United Kingdom. A couple years ago, after wrapping up a Fruit Logistica event, Oleen went with one of Costco’s packaging specialists, Jason Shuttleworth, to check out packaging advances that were being utilized by U.K. retailers. Chains like Tesco and Marks and Spencer were using Top Seal on almost all of their produce items. Pair the clean presentation with its quality and visibility factors, and it just seemed like a perfect fit.
As Oleen began to build on her knowledge of Top Seal, Costco looked for suppliers who would be willing to partner and commit to transitioning their categories to the new packaging. Mastronardi/SUNSET® had already been in the advanced stages of working with Top Seal on new peelable packaging.
“Mastronardi was the first company to partner with us on the Top Seal conversion,” Oleen tells me. “They had been working with Top Seal before I came to them and had initiated the peelable packaging with grape tomatoes. This conversion alone saved 36,000 lbs. of plastic a year just on grape tomatoes on the East Coast,” Oleen says. Mastronardi also found out that they could save on cases – instead of stacking the product just one layer high, they could stack two layers of product since the packaging is much sturdier and durable than most people think.
Paul Mastronardi, CEO of Mastronardi Produce/SUNSET®, tells me, “Top Seal packaging has many advantages for both the member and retailer. The design allows for opportunity snacking, which means members are more likely to eat tomatoes throughout the day. Simply peel the film, rinse in the bowl, and set it out on the counter.”
Since snacking tomatoes are typically consumed quickly, relative to shelf life, SUNSET® had gone with the peelable, as opposed to resealable, option to promote the snacking component throughout the day.
“The package has a sleek look with a preprinted, high graphic film and of course, less material than a traditional clamshell, meaning less waste. Not to mention the entire package is 100 percent recyclable. We’re proud to share our Top Seal vision with Costco and work together with key suppliers to increase sales,” Paul adds.
Costco Canada has also been working with vendors in its blueberry category that have already transitioned, as well as vendors that are transitioning for summer programs. Take Naturipe for example, who has already adopted the Top Seal program. The company is using Top Seal/Heat Seal’s peel-reseal technology, to enhance its product prowess.
“Typically, members will not eat 2 lbs. of blueberries in one sitting and so the resealable packaging makes more sense,” Oleen says.
As Naturipe continues to reinvent its product line, Robert Verloop, Executive VP of Marketing for Naturipe Farms, tells me, “Innovations in packaging are part of our DNA at Naturipe. Several years ago we used heat seal technologies to enable the development of our Ready-to-Eat blueberry snack products. We saw the opportunity to expand to our large packs, and have worked closely with a range of packaging experts/suppliers and our customers to bring the current version to the marketplace. Our heat seal film, with a peel and reseal top, is another step forward in implementing sustainable technologies that make healthy great tasting fresh blueberries more convenient for members, enhance merchandising of the berries on retail displays, and give chefs more flexibility for their restaurant operations.”
Naturipe offers heat sealed blueberries in the 18 oz. and 2 lb. trays and are available from operations in GA, CA, NJ, MI, OR, and BC. In the coming year, Costco has a goal of moving all produce categories to Top Seal, based on their adaptability to the program.
Highline Mushrooms is currently in the works and is slated to make its debut this year. Costco also has a smaller TOV in the East, which they are working to transition to Top Seal. In addition, packaged salads are also making their way to the Top Seal program with items like Misionero’s Garden Life Washed and Trimmed Lettuce and Misionero Earth Greens Organic Salads.
Dan Canales, Vice President of Sales and Marketing at Misionero Vegetables, tells me, "Oleen has a great sense and knowledge of new and emerging packaging and products. She is willing to be a leader in order to continue bringing value and uniqueness to Costco's members. The ‘peel and reseal’ technology is a prime example of that.”
“There were challenges to transitioning to the Top Seal program in the early stages. But the ROI proves that this program is worth every penny. There is quite a bit of initial investment right from the start."
Costco Canada is also testing Coronation grapes, nectarines, and kiwi fruit. As with implementing any new program or business model, there are always the hurdles and the concerns.
“There were challenges to transitioning to the Top Seal program in the early stages. But the ROI proves that this program is worth every penny. There is quite a bit of initial investment right from the start," Oleen says. "But those that have partnered with us have our commitment to them, and we have theirs in return.”
In some cases, Costco Canada even partners with its vendors all the way to the seed, traveling with suppliers to Holland for hot house seed tours. As everything is transitioning back towards quality and flavor, Oleen likes to be involved right from the beginning to observe the development of varieties, each step of the way. Top Seal machinery can handle heavier volumes at a quick pace as well, and depending on the facility it may be even more efficient for packer and shippers.
“From a packing standpoint, Top Seal’s efficiencies become one of those elements that affect a higher ROI,” she notes.
"The growers have been my teachers."
The Top Seal program is gaining ground, as macro and micro-perforated film is now produced by multiple suppliers from Italy to the U.S. In Canada, Costco is not repacking product, which is a concern that suppliers might have had with similar peel-reseal technology.
“It comes down to providing better quality for the member. Everything about the end product is beneficial, and it is selling well,” Oleen says. “Members can be a little bit hesitant when it comes to packaging changes and understanding the dynamic, but with Top Seal they are loving it.”
While Oleen remains at the forefront of packaging trends, she reminds me that she did not initially begin in produce with Costco, but was promoted into the role 10 years ago. Previously, she worked throughout just about every other food category during her time in Food and Sundries.
“I had very little hands-on, produce-focused experience when I first put my toe in the water. The suppliers were a huge part of the learning process. They put up with all my questions - the growers have been my teachers," she says.
Perhaps taking a cue from suppliers that she's come to know and respect, Oleen tells me that produce is ever-changing. "In a word, produce is dynamic,” she notes.
Top Seal is proving to be a win-win for both Costco and its vendor partners, providing the quality, visibility and freshness members have come to depend on, while aligning with the industry’s sustainability initiatives.
Crazy? More like inspired.
BANCROFT, WI - Among the busy atmosphere of the PMA Foodservice Expo, RPE’s Account Manager Mike Shamberg took the time to show off the company’s Tasteful Selection’s line of baby potatoes.
So why are these particular spuds so unique?
“Every potato in each box is no more than four, five, six millimeters in difference in size,” Mike tells us, explaining that it’s the size profiles that sets this product apart.
The full line of potatoes come in “one bite,” “two bite,” and “three bite,” sizes, are pre-washed, and ready to go.
Available in medleys and three various colors, the similarity in sizes means the same prep and cook times, which Mike explains makes them a chef favorite.
Watch the brief video above to see our full interview with Mike, and keep checking in with AndNowUKnow to continue to get up close and personal with the industry’s latest products.
BAKERSFIELD, CA - Thanks to the Let’s Move Salad Bars to Schools campaign, Panama-Buena Vista Union School District (PBVUSD) have reached their goal of implementing salad bar lunch programs at all of their schools as of Monday, September 14th. The district can now proudly say that all 23 school sites (18 elementary and 5 junior high) have salads bars as part of their school lunch program.
PBVUSD’s Director of Nutrition Services, Marilou Onaindia said, “The addition of the salad bar to the NSLP is an effective and creative way of introducing fresh fruits and vegetables to students, offering variety and choice. When students are able to create their meal the way they like it, they eat it. And we all know that for a meal to be nutritious, it must be eaten.”
Started in 2010, the Salad Bar Program stemmed from when the time when the then CEO and President of Sun World, Al Vangelos, approached the district about partnering with local grape growers Sun World and Pandol Bros. (members of the United Fresh Produce Association) to pilot a salad bar program at Stonecreek Junior High. In turn, each grower donated a salad bar as part of their ongoing support of the Let’s Move Salad Bars to Schools initiative founded in part by the United Fresh Produce Association and supported by First Lady Obama’s Let’s Move! Initiative.
Not only did the pilot program at Stonecreek Junior High prove to be a huge success, but it also increased participation in the National School Lunch Program (NSLP) by 25% and helped increase the students’ consumption of fresh fruits and vegetables. Currently, PBVUSD has received 29 salad bars, valued at approximately $87,000, through the efforts of this campaign, including donations from the following:
- Sun World
- Pandol Bros.
- Grimmway Farms
- California Women for Agriculture – Kern County Chapter
- Whole Kids Foundation
- Pro Citrus Network
- Morada Produce, Inc
- Ed Purves (2014 Tour de Fresh)
- Van Gromingen and Sons, Inc
- Fresno Produce Company
- HarvestMark
- Lisa McNeece
- California Grape & Tree Fruit League
According to a press release, the Let’s Move Salad Bars to Schools campaign has allowed school districts across the country to make amazing improvements to school lunches. To date, the campaign has earned over $10 million, and donated more than 4,100 salad bars to different schools. The campaign team says they rely on personal involvement and charitable commitment of produce growers, distributors, and marketers to raise private funds for donations of salad bars to schools.
ORLANDO, FL - Darden Restaurants’ efforts to revamp its Olive Garden brand are paying off.
The company’s same-restaurant sales rose across the board for during Q1 2016, with a notable 2.7 increase for Olive Garden. This is the sixth consecutive quarter of increased sales for the company, which is currently operating under its largest shareholder Starboard Value.
Darden has made a number of changes to its menu at Olive Garden, which has helped attract more customers. Gene Lee, CEO, said in a press release that the company is continuing to build on its momentum from last year.
“We continue to make progress on our operating fundamentals of culinary innovation, attentive service, and engaging atmospheres while continuing to focus on disciplined cost management,” he said. “This progress is a direct result of our hard work and commitment to creating memorable guest experiences in our restaurants.”
Darden’s stock increased approximately 4 percent to $73.25 in pre-market trading. In after-hours trading, Darden stock decreased 0.73 percent to $69.70.
Total sales increased 5.7 percent to $1.69 billion. Net earnings were $86.4 million compared to the $503.2 million last year, which included the gain on the sale of discontinued operations, according to a press release. Same-restaurant sales increased 3.4 percent for the quarter.
Other highlights from Darden’s Q1 2016 include:
- Adjusted earnings per diluted share from continuing operations increased 112.5 percent to $0.68
- On a reported basis, earnings per diluted share from continuing operations were $.063 and were negatively impacted by approximately $0.05 related to the ongoing implementation of the company’s strategic real estate plan
Darden beat analyst expectations for its Q1 2016 report. CNBC reports that analysts expected Darden to deliver adjusted earnings per share of $0.58 on revenue of $1.68 billion, according to a Thomson Reuters consensus estimate.
How will the company continue to improve on its brand? Stay tuned to AndNowUKnow as we follow Darden’s financial reports in Q2 2016 and beyond.
NEW YORK, NY - Yesterday was Smart & Final’s one year anniversary with the public. Going public that is. And what other way to celebrate than with 100 more stores?
"We have achieved strong financial growth during our first year as a public company, and have accelerated the expansion of our 'Extra!' store format,” Chief Executive Officer Dave Hirz said, according to a press release. “Building upon our established 'Extra!' and Cash & Carry footprint throughout the Western United States, we are now focused on executing our Project 100 plan, which includes opening over 100 'Extra!' and Cash & Carry format stores in the next four years. We believe our consistent focus on value, quality and convenience resonates powerfully with our business and household consumers, and gives us an edge in a competitive market."
“Project 100” is the plan that emphasizes what this expansion will mean for the chain and the communities it enters - 100 new stores in 100 new places with 100 new teams, all in line with its 10 percent annual unit growth plan.
According to the company, this will also mean about 5,000 new jobs, minimum, in the markets which they enter.
Marking the one year anniversary of its IPO, Smart & Final’s senior management and members of the Board of Directors joined Hirz to ring The Opening Bell® at the NYSE in New York City yesterday morning.
"We are excited to welcome Smart & Final back to the New York Stock Exchange on the one-year anniversary of their initial public offering,” Garvis Toler, NYSE's Global Head of Capital Markets, added. “Smart & Final is a valued member of the NYSE family of listed companies, and we look forward to a long and fruitful partnership with the company."
Smart & Final continued to launch several product and marketing initiatives throughout its first year of going public, according to the company, including:
- The expansion of its natural produce selection in its stores
- The expansion of its private label First Street
- The expansion of its organic private label Sun Harvest
The chain also delved into in-home and office delivery, partnering with Instacart and Google Shopping.
AndNowUKnow will continue to report on this developing story as well as all retail occurances that continue to influence produce operations.
UNITED STATES & MEXICO - As we wrap up the summer months and move into fall, onion growers are reporting a strengthening market, especially on reds, as they gear up for "storage" onions. The prolonged heat in the Northwest has contributed to the shortage in supply, which could signify higher prices on the horizon.
Brandon Calandri, CEO of Lancaster, CA-based Calandri Sonrise Farms and Antelope Distributing, Inc., tells me that the summer has been a challenge for his red onion acreage in Quincy, Washington.
“The excessive and prolonged heat for about 6 weeks proved challenging within our crop,” Brandon tells me. “In some areas, growers even saw temperatures reach into the hundreds. Down in Southern California, we are used to dealing with triple digits. Yellow onions, which we also grow in Quincy, are much more hardy compared to red and did not experience the same level of volume issues.”
Luckily, companies like Calandri have different distribution systems to help mitigate issues during moments like this with operations throughout the Northwest and California.
Steve Gill, Co-Founder of Gills Onions, also seconded the tighter onion supplies this year, which he attributes to the heat across the Northwest. “Reds, and even in some cases yellows, are tight from what I have observed. In addition to finishing early in the Northwest this year, the market has been seeing smaller sizes as well, which is affecting yields.”
Smaller sizes occur when the heat stunts the growth cycle, which may not affect quality so much as the size. Steve notes that there are more jumbos than colossals in the market this year, and some growers have seen sizes up to 25% smaller onions in the Northwest.
“The California Crop was pretty close to normal this year, which has helped keep product in the market,” Steve adds. “Across the country there have been issues with consistency and I anticipate there may be some upcoming fluctuations in the market.”
Onion Commodity Manager, Anthony Mazzuca for Tanimura & Antle, tells me that Texas/Mexico had their challenges this year due to wet weather.
“The previous year's storage program ended with only the California onion crop to supply pent up demand. The high market throughout the California deal reflected the shortage and supply was quickly cleaned up,” Anthony says.
The Northwest stepped in with good initial volume (specifically smaller sizes), which drove markets lower he also noted, explaining that the reality is that smaller onions means smaller yields, and that there is a real shortage of JBO or greater onions, that has started to set in.
“While the market on MED onions has not reacted yet, we expect it to trail, but follow the JBO or greater market UP as customers search from cheaper alternatives on rising markets,” Anthony adds.
Stay tuned to AndNowUKnow as we continue to bring you market updates from across the industry.