BELLINGHAM, WA - The retail battle between Haggen and Albertsons is heating up.
Haggen filed a lawsuit on Tuesday against Albertsons for over $1 billion, claiming that the supermarket giant sabotaged its expansion into new markets and made misleading remarks to influence its decision to buy more than a hundred Albertsons and Safeway stores.
The lawsuit, filed in a Federal Court in Delaware, professes that Albertsons had engaged in an illegal campaign against Haggen including “premeditated acts of unfair and anti-competitive conduct that were calculated to circumvent Albertsons obligations under federal antitrust laws, FTC orders, and contractual commitments to Haggen, all of which were intended to prevent and delay the successful entry of Haggen (or any other viable competitor) into local grocery markets that Albertsons now dominates.”
The lawsuit also lists several “malicious and unfair actions” that “strained Haggen’s resources” and “created substantial distraction and diverted the attention of store-level and senior Haggen management” during the store conversion process. According to the filing, some of these actions allegedly include:
- Using proprietary and confidential conversion scheduling information to plan and execute aggressive marketing campaigns intended to undermine Haggen grand openings;
- Providing Haggen with false, misleading and incomplete retail pricing data, causing Haggen stores to unknowingly inflate prices;
- Cutting off Haggen-acquired store advertising in order to decrease customer traffic;
- Timing the remodeling and rebranding of its retained stores to impair Haggen’s entry into the relevant markets;
- Diverting customers by illegally accessing Haggen’s confidential data to gain an unfair competitive advantage;
- Deliberately understocking certain inventory at Haggen-acquired stores below levels consistent with the ordinary course of business just prior to conversion, resulting in out of stocks which negatively impacted the shopping experience upon Haggen grand openings;
- Deliberately overstocking perishable inventory at Haggen-acquired stores beyond levels consistent with the ordinary course of business just prior to conversion such that Haggen had to throw away significant amounts of inventory it paid for;
- Removing store fixtures and inventory from Haggen-acquired stores that Haggen paid for;
- Diverting Haggen inventory to Albertsons stores;
- Failing to perform routine maintenance on stores and equipment.
The move comes at a time when both retailers have been engaged with a legal back-and-forth, the latest of which includes Albertsons’ $40 million lawsuit for past due inventory purchases.
Albertsons made a statement saying that Haggen’s allegations are “completely without merit.”
Haggen made headlines last December when the regional grocer bought 146 Albertsons and Safeway stores in Arizona, California, Nevada, Oregon, and Washington. The decision enabled Albertsons to gain the FTC’s approval of its merger with Safeway, a combination that would create “one of the largest food retailers in the United States, with over 2,200 stores and $61 billion in combined sales,” the complaint states.
The grocer said that Albertsons' anti-competitive conduct caused “significant damage to Haggen’s image, brand, and ability to build goodwill during its grand openings to the public,” noting that these unlawful acts had lessened the economic viability, marketability, and competitiveness of the Haggen stores.
Since the start of its rebranding efforts, Haggen’s stores have faced considerable pressure, including shoppers complaining of high erroneously priced products, cut backs on employee hours, and hundreds of layoffs. Most recently, Haggen said that it would close or seek to sell at least 27 stores.
For now, this retail battle will have to be settled in court. For more on Haggen and Albertsons, stick to AndNowUKnow.
WENATCHEE, WA - Supermarkets looking to get a jump on this year’s early apple season may be in luck. According to Steve Lutz, CMI’s Vice President of Marketing, this opportunity offers retailers an easy way to boost sales prior to the traditional October peak.
Harvest dates in Washington State have been pushed forward by as much as three weeks due to an early bloom and consistently high temperatures through the growing season. Early season sales reports from the Washington State Tree Fruit Association show that shipments to date are 12 percent higher than the early crop in 2014, and over 300 percent higher than the same time period in 2013, according to a press release.
“Washington had an early crop last year as well,” said Lutz. “This year is even earlier and the category data from last year shows that retailers who seized the opportunity enjoyed peak season sales levels several weeks before their competition.”
Looking at Nielsen scan data results from last fall, the earlier harvest has enabled retailers to build out full apple assortments sooner. As a result, Lutz says, supermarkets that seized this opportunity generated “significant sales gains.”
“The top 20 chains in September grew apple sales by 6.5 percent with a category contribution of over 9 percent,” Lutz continued. “The apple category average for the total U.S. was an increase of just 1.6 percent in sales with a category contribution of 6 percent.”
The early season provides supermarkets who capitalize on the early season with an additional four weeks of peak season dollars and volume because they can reach the seasonal plateau of 8 percent category contribution to total produce by mid-September, rather than the early to mid-October average.
“We’re so much earlier than normal – it’s just a great opportunity for retailers to energize their sales right after Labor Day,” Lutz added. “The opportunity to bring in the apple shopper is right now, not October.”
CMI is already well into harvest on Galas, Honeycrisp, Reds, Fujis, and organics, with Grannies on the way next week. Now is the time to push the apple category further than ever before.
IRVING, TX - California Giant Berry Farms’ new website layout and design has propelled DMA Solutions, Inc. to the final round for Hubspot’s Website Design of the Year.
DMA’s creative web design and strategy incorporates high-impact photography, recipes, and convenient navigation with drop-down menus for easy use, constructed by utilizing consumer data from Hubspot. It also includes a personal touch, with personalized greetings featured on the site.
“Fresh produce marketing is advancing and California Giant Berry Farm’s website is a direct reflection of this progress,” Dan’l Mackey Almy, President and CEO of DMA Solutions, Inc., said in a press release. “DMA Solutions, Inc. has established a cost-effective way to produce results-based website designs that truly reflect an advanced level of marketing that is accessible to brands across the fresh produce industry.”
According to California Giant, the latest design has resulted in a 77 percent growth in website traffic, as well as quadrupled the company’s contact conversion rate.
“We are now able to be more strategic by providing berry lovers with content that they prefer and that is helpful, using the Hubspot platform for conducting permission-based online marketing,” Cindy Jewell, Vice President of Marketing for California Giant Berry Farms, stated. “Ultimately, we are adding value to the fresh, delicious California Giant berries that people love and thereby increasing and solidifying brand loyalty.”
You can view the nominated California Giant website by going to www.cagiant.com and going to The Buzz blog.
DMA Solutions, Inc. has a long-term commitment to enhancing the consumer online experience with fresh produce clients, according to the company, and continues to partner and invest in Hubspot as part of that commitment. DMA Solutions’ The Core blog is also hosted on the Hubspot platform.
The announcement of the winners for the 2015 Hubspot Impact Awards is also quickly approaching, planned to take place on Sept. 9th at the INBOUND 2015 conference in Boston, Massachusetts.
DENVER, CO - Following the company’s April announcement that it would be eliminating all GMO products from its menu, Chipotle is now being slapped with a lawsuit that claims the chain may have been “misleading consumers.”
Earlier this week, a law firm filed a class-action lawsuit in federal court claiming that the fast-casual chain’s marketing is “misleading and deceptive” because it still sells a substantial amount of foods made with GMOs. Chipotle’s meat, cheese, and sour cream is made from animals fed with GMO soy and corn, the complaint claims, and the soft drinks it serves are made with corn syrup made from GMO corn. Filed in the Northern District of California, the lawsuit is on behalf of California consumers who have purchased food from Chipotle since the company made its official announcement, with Kaplan, Fox, and Kilsheimer representing.
“Chipotle’s advertising in its stores should have accurately informed customers about the source and quality of its ingredients and should not mislead consumers that they are serving food without GMOs when in fact they are,” says Attorney Laurence D. King from the firm. “Chipotle’s advertising in its stores should have accurately informed customers about the source and quality of its ingredients and should not mislead consumers that they are serving food without GMOs when in fact they are.”
Chipotle has yet to make a comment on the lawsuit, with the company’s Communications Director Chris Arnold telling Fortune Magazine, “Generally speaking, we do not discuss details of pending legal action, though we do plan to contest this.”
The company, however, has made efforts to clarify that not ALL of its menu items can currently be made GMO-free at this time. At the time of Chipotle’s announcement, the chain posted the following disclaimer on its non-GMO website.
“The meat and dairy products we buy come from animals that are not genetically modified. But it is important to note that most animal feed in the U.S. is genetically modified, which means that the meat and dairy served at Chipotle are likely to come from animals given at least some GMO feed,” the company stipulated. “Many of the beverages sold in our restaurants contain genetically modified ingredients, including those containing high fructose corn syrup, which is almost always made from GMO corn.”
Despite this clarification, the class-action lawsuit still claims that Chipotle advertisements on the matter were distinctly misleading. “Now, all of our food is non-GMO,” says one billboard for the company, and one sign displayed in the company’s restaurants says, “Only non-GMO ingredients.”
To be clear, there is no evidence to the Food and Drug Administration’s knowledge that GMOs are not 100% safe. Most of the country's big crops like corn and soybean crops are genetically modified to resist common issues such as herbicidal damage and plant diseases.
WESTBOROUGH, MA - BJ's Wholesale Club, Inc. (BJ's) has welcomed seasoned retail veteran Christopher J. Baldwin as its new President and Chief Operating Officer.
"I am very excited to welcome Chris to the BJ's team," Laura Sen, BJ's CEO, said, according to a press release. "Chris' record of excellence in leading large and successful organizations in the retail and consumer sectors will help us to build upon BJ's strong heritage of offering a distinctive shopping experience and deep value proposition to BJ's millions of loyal members."
Having held several leadership roles, including President of Snacks at Kraft Foods (Nabisco), President of North America at the Hershey Company, and several executive roles at Procter and Gamble, Baldwin brings more than 30 years of executive retail and consumer products industry experience to the position. Most recently, he operated over 1,300 fuel and convenience stores on the East Coast as CEO of Hess Retail Corporation prior to its sale to Marathon Petroleum Corporation.
"We are delighted to welcome Chris Baldwin to the BJ's team,” Cameron Breitner, Partner of CVC Capital Partners, said in the release. “Over a long career in the retail and consumer sectors, Chris has proven himself to be an outstanding and innovative leader at a number of great companies, and we expect him to make similar contributions at BJ's."
Baldwin is enthusiastic about the opportunity, saying that he feels both privileged and excited to joining the BJ’s team.
"BJ's operates a unique and well positioned model within the very exciting wholesale club retail channel,” he said. “I look forward to working with BJ's executives, team members, and its Board of Directors to help bring value to all our stakeholders."
Baldwin will responsible for a number of BJ’s operations, including:
- Merchandising
- Logistics
- Membership
- Marketing
- Club Operations
Baldwin will also join BJ’s Board of Directors, and steps in as acting President and COO effective September 8th.
MCMINNVILLE, OR - The “no fuzz, no fuss” berry is making its comeback this fall.
HBF International is launching full speed ahead into its kiwi-berry season out of Oregon and supply is holding steady with the current demand. In fact, the demand for this unique item has continued to grow annually as more consumers become aware of this easy-to-eat, fuzz-less, large berry.
Lori Hickey, Marketing Manager for HBF International, tells me that the consumer response has been fantastic thus far.
“We anticipate the demand to continue to grow as more consumers become aware of this berry,” she said. “Hands down there is a positive response by those trying kiwi berries for the first time. The kiwi lovers out there also love how easy it is to eat this berry.”
Kiwi-berries have a very similar flavor profile to the traditional kiwi fruit. In fact, most people will say that they taste like kiwi, only sweeter. Nutritionally, Lori tells me that they’re considered a super fruit because they offer more vitamin C than an orange. Those deemed “super” by nutrition scientists are packed with antioxidants, fiber, vitamins and minerals, and other nutrients that can help you live longer, look better, and even prevent disease. Being high in vitamin C is just one of the perks.
With the steady increase in demand, HBF International has also been increasing its acreage for this item.
“Our existing growers continue to add acreage as they work out the kinks of growing this somewhat difficult-to-grow berry,” Lori tells me.
For this season in particular, the volume has been great and the company expects to meet the demand. More than ever, however, it’s crucial that more consumers become aware of this item.
“We do know that there is a need to inform and educate the new consumer about the best time to consume these berries, and we have been working with the retailers to do just that. We like to say, ‘the softer the fruit, the sweeter the flavor,’” Lori says. “We are willing to provide POS/POP materials at the retail level to help get that information, as well as nutritional information into the hands of the consumer and recipes on our website to encourage other uses.”
Stay tuned to AndNowUKnow as we continue to track the rising popularity of this unique berry.
GLOUCESTER CITY, NJ - Capespan North America has announced that 20-year produce sales and marketing veteran Erin Meder will be joining the company as its new Sales and Category Director for Grapes.
Starting September 28, Meder will lead Capespan North America’s table grape sales and marketing efforts for imported grapes from Peru, Brazil, Chile, South Africa and Mexico as well as its domestic California table grape program. Erin has been in the business of fresh produce sales and marketing for over two decades, gaining an extensive amount of experience in sales and marketing table grapes, citrus, berries, and a variety of other fresh products along the way.
To view some of Capespan's locations from above, watch the video below.
“Erin’s addition to the Capespan North America’s New Jersey – based sales team will bring augmented sales and marketing strength, deep product knowledge, and a wealth of experience,” the company says in the release. “This will translate into enhanced customer service and will fortify its relationship with its grower base around the world.”
Meder will be spearheading her new position out of Capespan North America’s Gloucester City, NJ location. In addition to leadership and management of the company’s grape programs, a press release has stipulated that Meder will have senior retail account responsibilities for the other imported and domestic products that Capespan North America distributes including imported and domestic citrus, apples, and pears.
BENTONVILLE, AR - Though back-to-school season is up-and-running, Wal-Mart is reportedly cutting back on employee hours rather than adding them like usual.
Bloomberg reports that the retailer’s regional executives announced to store managers that expenses need to be cut by dialing back on any additional hours beyond what was allocated to those locations. According to the report, these are based assigned hours quotas are based on sales projections.
Kory Lundberg, Senior Director of Corporate Communications for Arkansas-based Wal-Mart, told Bloomberg that the reduction in hours is only taking place in stores where managers have over scheduled workers beyond what they were allowed. “The reductions won’t affect efforts to better staff stores, shorten checkout lines, and improve cleanliness and stocking,” he added.
As a result of these new orders, managers have been either asking employees to leave early or to take longer lunches to trim down their time on the clock.
As we previously reported, Wal-Mart recently promised a $1 billion investment in boosting its minimum wage well beyond the federal limit, as well as other condition improvements. And while the company turned out a slip in profits for its Q2 of the 2015 fiscal year, Wal-Mart CEO Doug McMillon said during a conference call with investors that the progress towards its plan is not moving as quickly as desired, the fundamentals of serving customers are consistently improving.
While Strategic Resource Group LLC Managing Director Burt Flickinger appeared to agree with this, telling Bloomberg that Wal-Mart has made strides during the past year in addressing customers’ complaints of barren shelves, dirty stores, and long check-out lines. He also said that cutting hours now could risk both alienating customers through the backlash of being understaffed and losing some of its best employees to competitors who might provide more stable hours.
An employee from the Houston region, who did not have permission to speak with the media and so asked to remain anonymous, told Bloomberg that her store had cut back more than 200 hours per week, and as a result she has seen longer wait times for customers to be helped. She recalled that on August 19th, at least eight people were sent home by late afternoon amidst one of the busiest times of the season, including sales-floor associates and department managers.
Greg Foran, Head of Wal-Mart’s U.S. Operations, stated earlier this month in regards to the company’s quarterly report that the company is still focusing on both improving the stores and yet curbing expenses.
“Amid the investment, we’re focused on growing sales and controlling costs, as you would expect from Wal-Mart,” Foran said earlier this month after the company announced disappointing earnings. “We are staying true to our roots.”
He concluded, however, that Wal-Mart is committed to improving the customer experience and will protect the investments necessary to achieve that goal.
BOISE, ID - The USDA has approved Simplot’s Russet Burbank variety potato, which is genetically modified to resist the pathogen that caused the Irish potato famine.
“For historical reasons and current agriculture reasons, this is an important milestone,” said Haven Baker, Vice President of Plant Sciences at Simplot. “The Irish potato famine did change a lot of Western history. Even today – 160 years later – late blight is a $5 billion problem for the global potato industry.”
This is the second generation of Simplot’s Innate-brand of potatoes, which we’ve reported on earlier this year. The GMO spud also includes the first generation’s reduced bruising and a greater reduction in a chemical produced at high temperatures that some studies have shown can cause cancer. The new potato variety also includes an additional trait the company says will allow potatoes to be stored at colder temperatures longer to reduce food waste.
Before these potatoes can hit the store shelves, the next step is approval by the Food and Drug Administration, which ruled the first generation as safe in March. The potatoes must also be approved by the Environmental Protection Agency, which regulates GMOs.
Baker said the modifications were made by silencing existing genes or adding genes from other types of potatoes, according to news source The Idaho Statesman, not from other plants or animals. The late-blight resistance came from an Argentinian variety of potato that naturally produced a defense to the blight.
“It’s potato genes in the potato,” he said. “There are clear benefits for everybody, and it’s just a potato.”
The first generation of the Innate potatoes were marketed as White Russets. Doug Cole, the company’s Director of Marketing and Communications, said about 400 acres’ worth sold out last summer in grocery stores in 10 states in the Midwest and Southeast. The company plans to market about 2,000 acres of potatoes next summer, according to the Statesman.
“Our focus is on the fresh market for the coming year,” Baker said. “We think the benefits are clear. We’ve got customers, and it’s a place that we’re excited to be. To some degree I think we need to prove that consumers are willing to buy White Russets, and they know what they are and that they see the benefits. Then I think the other parts of the industry will come.”
The company said it expects FDA and EPA approvals within a year. Commercial planting would likely begin in 2017, the Statesman reports, with the second-generation potatoes available to consumers that fall.
The company is already working on a third generation, Baker says, which is expected to have a resistance to a type of virus that can potentially make potatoes unmarketable. He also mentioned that the company eventually hopes to have potatoes that require less water and can better survive heat and drought.
PORTERVILLE, CA - Another successful summer fruit program has come to a close, and Homegrown Organic Farms is jumping into its fall fruit category with full force.
Kicking off its fall program with organic Shinko and Hosui Asian Pears, grown in the heart of the valley, in Kingsburg, CA, these varieties will be offered in both double and single layer trays depending on size. Last year, Homegrown expanded its entire organic fall fruit line with new growers and new acreage, continuing the company’s commitment to sustainable growing.
“The organic fall fruit category continues to grow for us and it’s an exciting time to be a part of it,” Cherie France, Marketing Manager of Homegrown Organic Farms tells me. “Along with the category growth, we have seen an increased concern of social responsibility, including food safety, sustainability, and labor, across all fresh produce commodities. We pride ourselves in the fact that we’ve always been a market leader with regard to these topics, and our customers have come to recognize this.”
Also on Homegrown's agenda is the company's pomegranate harvest, with new acreage expected to start production both this year and next. The Smith variety, which Cherie describes as a unique early season variety known for its vibrant red color, soft seeds, and high juice content, may arrive any day now, but the company is also expecting Wonderfuls to begin in early October.
“We’ll be harvesting in Fresno, Madera, and Tulare Counties this season. The crop is looking good with excellent flavor profiles and eating quality," Cherie continues. "All our #1 production will be packed in double layers while our new EcoPac label will be packed in both double layer and volume fill which will provide an exceptional value for our retail and wholesale partners.”
On the home front, Homegrown launched its new sustainability program earlier this year, called Committed to Caring, and continues to use it to showcase the company’s efforts in caring for the land, the environment, and our communities. According to the company, the response from our customers has been outstanding.
“We offer a full line of resources to help retailers merchandise and promote Homegrown products including grower photos and bios,” Cherie says. “Consumers love to know where their food is coming from and who their farmer is so we’ve recently included a QR code on our packaging that links with our grower stories on our website. This, along with many of our other resources, helps to bridge the gap between consumers and their growers and we love to help folks make that connection.”
Keep watching AndNowUKnow as we continue to cover all of Homegrown’s fall varieties and its continued dedication to growing organics.