MCLEAN, VA - Gladstone Land Corporation is entering into a new territory with the purchase of two farms in Nebraska.
The two farms consist of 2,559 acres of farmland with 2,101 pivot-irrigated farmable acres, in Rock and Holt Counties, Nebraska. The total purchase price for these two farms is $11 million. This equates to approximately $4,298 per acre of farmland.
Gladstone entered into a leaseback agreement with the seller for a 3-year lease that provides for annual rent escalations, according to a press release.
“With our first Midwest acquisitions, we are continuing to diversify our portfolio of farmland properties, as well as the crops being grown on the land we lease to our tenant-farmers,” said David Gladstone, President and CEO. “Our objective is to acquire prime farmland and become long-term real estate partners with the farmers on the land. We believe these two farms have excellent soil and plenty of wells for irrigation.”
As a result of this acquisition, Gladstone currently owns 38 farms nationwide that produce a variety of fruits, vegetables, and grains. These 38 farms are comprised of 14,027 acres in six different states across the United States, valued at approximately $242 million. These states include Arizona, California, Florida, Oregon, Michigan, and now Nebraska.
“We are excited to expand into the Midwest with our first acquisitions in Nebraska,” said Bill Hughes, Managing Director. “We are looking forward to a long-term relationship with a well-established tenant, and we plan on diversifying our crop portfolio by adding potatoes, edible beans, and alfalfa as complements to a traditional corn-and-soybean rotation on these farms.”
The company expects to close another deal on an additional farm before the end of September.
Gladstone’s most recent purchase in late June included two farms in Florida for approximately $15.8 million.
For more on Gladstone, where it’s headed, and David Gladstone’s approach to acquiring farmland, check out our interview by clicking here.
GREENSBORO, NC - The Fresh Market posted an increase in net income and strong operating margins during its second quarter in 2015, but it just fell just shy of meeting Wall Street estimates.
The Fresh Market’s second quarter net income increased 53 percent to $17.5 million, or $0.36 per share, compared to $11.4 million, or $0.36 per share, during Q2 2014. Analysts polled by Thomson Reuters expected earnings of $0.40 per share for the quarter, according to NASDAQ.
Net sales increased 4.7 percent to $442.1 million, while comparable store sales decreased 1.0% to $392.7 million, according to the financial report. NASDAQ reports that analysts estimated $458.34 million for the quarter.
Sean Crane, Interim CEO, said even though changes in pricing and promotional investments made during the second quarter were less effective than anticipated, the financial health of the business continues to remain sound as the retailer delivers some of its strongest adjusted EBITDA margins and returns on invested capital in the industry.
“We are committed to increasing our profitability as we work to stabilize and improve our future comparable store sales,” said Crane. “As we move forward, we remain focused on our initiatives to build The Fresh Market brand, elevator our in-store experience and food offering, and capture greater operational efficiencies.”
The Fresh Market opened six stores during the second quarter, including two stores in Texas, and one store each in North Carolina, Georgia, Louisiana, and New York. During a conference call with investors, Crane said he was encouraged by the early response to these grand openings and expects that store remodels and refreshes will improve the customer experience and future sales.
While the Board continues to interview candidates for the CEO position, the company is also looking for an associate to replace Marc Jones, The Fresh Market’s Senior Vice President, Chief Merchandising and Supply Chain Officer. Jones is leaving the company, effective immediately.
“We appreciate Marc’s contributions over the years,” Crane said during the call. “A search is already underway for his replacement, as we are targeting an individual who will help us accelerate the improvement of our pricing, selection, and merchandise offering.”
The Fresh Market recently hired 20-year supply chain veteran Maria Ross to the newly created position of Vice President, Supply Chain. Ross will be responsible for overseeing The Fresh Market’s supply chain, including procurement, warehousing, logistics, and transportation management.
The Board of Directors also authorized a $200 million stock repurchase program, which Jeff Ackerman, CFO, said reflects the company’s strong, debt-free financial position and continued confidence in its long-term growth opportunities.
In conclusion, Crane said that the company’s long-term outlook is positive and that he believes The Fresh Market is taking the right steps to improve its operating model.
Stay tuned to AndNowUKnow as we continue to follow The Fresh Market’s financial performance in Q3 2015 and beyond.
OCEANO, CA - What is Kohlrabi? That is the first question I asked Bejo Seeds and Farm Stand Fresh after seeing this unique cabbage/turnip look-alike when I spoke to the team in Monterey last month. To my surprise, it is actually in the same family as kale. Which made me beg the question, could this versatile and delicious item climb the same popularity ladder that kale has over the past few years? I think yes.
Technically, kohlrabi is an incredibly nutritious vegetable with an excellent source of Vitamin C, and does not oxidize when exposed to air, so it makes an excellent kids' snack right alongside the carrot and celery sticks. Visually and flavorfully, the item is unique and delivers a flavor akin to radish/potato/broccoli, so you can see the opportunities here.
Bejo's kohlrabi varieties can take you right through the season, from early-maturing Kongo to the giant, later-maturing Kossak. Bejo also offers the organically-produced Korist and the purple-skinned Kolibri. For the marketing arm of the Kohlrabi, Farm Stand Fresh Foods (FSFF) has introduced the item to foodservice and retail customers as the trend takes hold.
For Bejo, the company’s new and innovative varieties do not stop at Kohlrabi. Jeff Trickett, Sales and Marketing Director of Bejo Seeds, Inc., tells me, “Bejo has a number of interesting vegetable varieties which we feel have application to current produce trends. Kale has obviously taken off with consumers and Bejo is the dominant supplier of bunch kale in North America. We believe that Kohlrabi via our giant variety Kossak will have significant opportunities as both a raw snacking item and in cooked dishes. We also have unique types of cabbage which eat more like lettuce with sweeter and finer leaf textures and therefore, can play a strong role in healthy eating. There are about 20 different potential projects waiting for activity.”
FSFF is a highly experienced team of consumer product specialists who have built and grown some of consumers’ favorite food brands. Jose Marrero, Chief Marketing Officer for Farm Stand Fresh Foods, tells me, “We always start with the consumer in mind, understanding what they are looking for (and not finding consistently) when considering fresh produce, and then matching that need with the right product in the right form. Bejo’s seeds, which produce healthy, nutritious and flavorful varieties of vegetables with some key differentiating characteristics unmatched in the market today, are the key to delivering on those needs.”
FSFF then works closely with its retail and foodservice partners who have a very close pulse on what the consumer is responsive to and develops the marketing plans to generate consumer interest and trial.
Jeff also tells me that consumers are looking for healthy, nutrient dense veggies to place into their diets but that they also want help in terms of how to prepare these items in tasty ways. “Consumers are looking for veggies that provide good eating performance… so in addition to appearance, they need good flavor, texture/mouth feel, recipe performance, etc. Bejo is bringing new veggies to retail produce that deliver the attributes consumers are looking for.”
Bejo breeds all of its varieties using traditional methods enhanced with the latest tools and science. Bejo does not develop or market any GMO products. So all of the varieties are proprietary hybrids, developed naturally, marketed by Bejo via partner firms such as Farm Stand Fresh Foods.
Looking forward to what’s to come! Thank you, Bejo and FSFF, for a new flavor profile to add to my repertoire!
RANCHO CORDOVA, CA - Garden Highway™, a Renaissance Food Group (RFG) brand, is teaming up with Tessemae’s All Natural and Whole Foods Midwest to deliver Crop Circles, a national event designed to bring fresh fruit and vegetables and an awareness of living a healthy life to food deserts across America.
"As American’s shift their focus towards the importance of a fresh and healthy lifestyle, we are finding that too many communities are still underserved without access to daily fruit and vegetables,” said Jim Catchot, President of RFG. “Crop Circles is working towards a goal of educating, empowering, and equipping residents of the communities we serve with this great event."
To learn more about the Crop Circles event and food deserts, watch the video below:
The Crop Circles event, taking place this Saturday, August 22nd from 10:00am to 3:00pm will feature a pop-up style Farmers Market with a free produce giveaway at TEAM Englewood Academy in the Englewood neighborhood of Chicago, IL. This is the second event of its kind, following a first successful event in Compton, CA, with over 3,000 residents in expected attendance.
According to a press release, all attendees will receive a free tote to fill with a variety of fruit and vegetables. In addition to the free produce, including Garden Highway™ brand cut fruit and vegetables, the event will include a variety of booths featuring wellness-based companies, a celebrity appearance, competition-style cook-off, and a live DJ.
Caito Foods, a fresh-cut processor and distributor out of Indianapolis, IN, helped to secure 20,000 pounds of donated produce, as will donate transportation for all product to the event site.
Renaissance Food Group Caito Foods Tessemae’s All Natural Whole Foods Market
HOLLYWOOD, CA - Last night, the always funny comedian and host Jimmy Kimmel brought First Lady Michelle Obama on Jimmy Kimmel Live to raise awareness for the star-filled campaign produce campaign, FNV.
FNV, or the cool way to refer to "fruits and vegetables,” aims to give produce the star treatment by marketing produce more like its big-brand counterparts, such as Nike and Apple.
In her most recent TV spot for the campaign, First Lady Michelle Obama teamed up with “regular man” Jimmy Kimmel to help encourage kids to eat healthy, but one key misunderstanding about what FNV stand for had the audience laughing out loud. Watch the video below or check out our recap for the hilarious exchange:
“FNV, as in eat your effin’ vegetables,” Kimmel said. “I know what the ‘F’ stands for, I have HBO.”
Obama, exasperated with the TV host, emphasized, “The F stands for fruit… It’s fruit… Just fruit…”
Despite FLOTUS’ explanation, Kimmel never quite grasped what the FNV PSA was all about. There was a happy ending, however, as Obama graciously bestowed Kimmel with a tomato as a parting gift.
To learn more about FNV, check out a previous article on the celebrity-packed produce movement.
WASHINGTON, D.C. - The USDA has barred three produce businesses for failure to pay reparation awards under the Perishable Agriculture Commodities Act (PACA).
According to a press release from the USDA, the following businesses and individuals are currently restricted from operating in the produce industry:
- Global Fresh Inc., a Los Angeles, California-based company has failed to pay a $26,900 award in favor of a Tennessee seller. As of the issuance date of the reparation order, Guillermo Alvarado was listed as the Officer, Director, and major stockholder of the business.
- LA Central Produce LLC, a Forest Park, Georgia-based company, failed to pay a $140,693 award in favor of a Texas seller. As of the issuance date of the reparation order, Juan C. Dorantes Bustamante and Jose J. Morales were listed as members of the business.
- Ideal Sales Inc., a Dallas, Texas-based company, failed to pay a $12,480 award in favor of a California seller. As of the issuance date of the reparation order, Jason Labarba was listed as the Officer, Director, and major stockholder of the business.
The USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it, as well as impose restrictions against those Principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, Partners, members, Managers, Officers, Directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.
In the past three years, the USDA resolved approximately 4,250 PACA claims involving more than $77 million. USDA experts have also assisted more than 7,000 callers with issues valued at approximately $110 million. Individuals, including sole proprietors, Partners, members, Managers, Officers, Directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service, PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.
KINGSVILLE, ON - Team Mucci is gearing up to complete the ultimate challenge for a worthy cause: 50K for $50K.
CEO Bert Mucci, President Danny Mucci, COO Gianni Mucci, and Key Account Manager Nick Williamson will run from Amherstburg to the Mucci Farms corporate headquarters in Kingsville on November 1 in an effort to raise $50,000 for Make-A-Wish® Southwestern Ontario. The proceeds from the 50K Ultramarathon will allow Mucci Farms to fulfill the wishes of five children and their families.
“Every time I think running 50K might be hard or almost impossible to finish, I think of the smiles on the children’s faces when their wishes are granted because of our fundraising efforts,” Danny Mucci said in a press release. “Then it makes our part seem easy, compared to their life challenges.”
Make-A-Wish Foundation’s mission is to grant the wishes of children that face life threatening medical conditions.
“Speaking with people who have personally experienced the joy of having a wish granted really pulls at your heartstrings and confirms we have chosen to support an incredible charitable organization,” said Emily Murracas, Mucci Farms’ Marketing Coordinator.
With the goal of “fulfilling wishes every step of the way,” Team Mucci is proud to make this major contribution to the community and continue supporting local charitable events.
AndNowUKnow wishes Team Mucci all the best, and we look forward to seeing their progress.
HOUSTON, TX - Sysco has appointed Nelson Peltz and Josh Frank of Trian Partners to its Board of Directors, just one week after the investment firm became the largest individual shareholder in the food distributor.
There are big expectations for the hedge fund billionaire, most of which have to do with how he plans to improve operating margins for the company in the wake of its failed merger with US Foods. Prior to his appointment to the Board, Trian held brief discussions with Bill DeLaney, Sysco’s Chief Executive, and Chairman Jackie L. Ward to find ways to return cash to shareholders, better align compensation with the company’s performance, and enhance the company’s value.
“Sysco is a leader in its business, and we believe it is undervalued and has tremendous long-term potential,” Peltz said in a press release. “As Sysco’s largest shareholder with an approximate 7.1 percent ownership position, we welcome the opportunity to work consecutively with the Board and management.”
Last week, Sysco shares surged by approximately 8 percent after news broke of Trian’s $1.6 billion stake in the company.
The new appointments will increase the board size to 12 members, 10 of whom are independent.
Peltz has previously served as a Director in a number of food businesses, including Wendy’s, Mondelez International, and H.J. Heinz Company. Frank has played a leading role in many of Trian’s investments in the consumer sector, as well as numerous investments across other industries.
“Nelson and Josh will bring our Board an informed perspective based on their significant experience in the food products industry,” said Ward. “We have engaged in constructive dialogue with Nelson and Josh and look forward to benefiting from their insights and contributions.”
DeLaney added that he respects Trian’s experience and values the perspective they bring as the company continues to build on its momentum to enhance long-term shareholder value.
Sysco plans to repurchase an incremental $3 billion in Sysco shares over the next two years, and expects to share further details regarding its strategic initiatives during its Investor Day on September 15.
Stay tuned to AndNowUKnow as we continue to share any further developments.
PULLACH, GERMANY - IFCO Systems has announced it will acquire the remaining two-thirds of IFCO Japan it did not already own, in a transaction that places an enterprise value on IFCO Japan of $39.7 million.
“Gaining full ownership of IFCO Japan is a key strategic step for IFCO in the continued expansion of our reusable plastic crate (RPC) business, which serves retailers and fresh food producers in most of the world’s major economies,” said IFCO Systems’ CEO, Wolfgang Orgeldinger. “The transaction offers a strong internal rate of return as it stands, with upside available as we focus on improving sales and marketing disciplines and driving stronger returns, including through potential synergies with IFCO globally."
IFCO Japan is one of two established RPC poolers in Japan. Founded in 1995 and, prior to full acquisition by IFCO parent company Brambles, IFCO Japan was jointly owned by Mitsubishi Plastics, IFCO, and Meiji Rubber & Chemical. The company has service centres in Gifu and Saitama near the cities of Nagoya and Tokyo respectively and employs 30 people.
The business serves a diverse customer base comprising leading Japanese retailers, fresh produce growers, cooperatives and wholesales. According to the company, IFCO Japan generated sales revenue of $24.7 million and EBITDA of $6.7 million in the Japanese financial year 2015. Key management will remain with the business.
Orgeldinger also confirmed that this acquisition was IFCO Systems’ largest investment in Japan to date, and will complement its ongoing assessment of opportunities in the RPCs segment and elsewhere in Asia.
CHICAGO, IL - At this year’s United Fresh conference in Chicago, IL, I spoke with Pete Overgaag, President and CEO of Hollandia Produce about the company’s Organic Butter Lettuce and Organic Watercress programs.
“What’s special about our products is that we grow them hydroponically in the greenhouse, and by doing so we’re able to leave the roots on when we harvest them,” Pete tells me. “Hydroponics are really in the spotlight in a good way at the moment, especially in California because of the drought. Hydroponics conserve a lot of water versus regular farming.”
Pete also showed me Hollandia’s clamshells, or what they refer to as “mini greenhouses.” These are used to protect the lettuces so the consumers can bring them home while they are at the peak of quality. Hollandia’s living watercress is also bagged to maintain the same high standard for quality.
To learn more about Hollandia’s Living Lettuce programs, watch my full interview with Pete Overgaag in the video above.