BRAMPTON, ON - Loblaw stocks were on the rise this morning following the release of the company’s second quarter earnings report.
As of 12:52 PM EDT, Loblaw's stock was up $2.80 to $70.35, a 4.15 percent increase.
In its report, the grocery retailer posted over C$10 billion in retail segment sales, rising C$221 million (approximately $169 million U.S.) compared to the same time last year. Food retail was a strong part of that growth, rising 4.2 percent for the quarter.
Loblaw said that its second-quarter profits were C$185 million (approximately $142 million U.S.), compared with a loss of C$456 million during the same time last year. The Q2 2014 report included costs related to the Shoppers Drug Mart acquisition.
“I am pleased with our overall performance in the second quarter, as we continued to execute well against our strategic framework,” said Galen G. Weston, President and Executive Chairman. “Looking ahead, the grocery industry remains highly competitive and healthcare reform continues to put pressure on our pharmacy business. We are well positioned to achieve earnings growth through a stable trading platform, incremental efficiencies, synergies, and a stronger balance sheet.”
Though competition is expected to remain high, the company anticipates maintaining positive same-store sales and stable gross margin (excluding synergies) in the retail segment.
Other highlights from the report include:
- EBITDA was C$739 million (approximately $567 million U.S.) in Q2 2015, increasing C$856 million compared to Q2 2014
- Operating income was C$375 million (approximately $287 million U.S.) in Q2 2015, increasing C$871 million compared to Q2 2014
- Loblaw realized approximately C$53 million (approximately $40 million U.S.) of net synergies
Stay tuned to AndNowUKnow as we continue following Loblaw’s performance in the third quarter and beyond.
WASHINGTON, D.C. – DGS Acquisitions LLC, a company operating in Kansas City, Kansas, has posted a $200,000 surety bond with the U.S. Department of Agriculture (USDA).
According to a USDA press release, the company posted the bond in order to obtain a license to operate in the produce industry.
Under the regulations of the Perishable Agricultural Commodities Act (PACA), the company was required to post a bond following one of its principal’s prior involvements in bankruptcy.
USDA will hold the bond for three years, providing assurance to the industry that the company will be able to pay for produce purchased and to conduct business according to PACA rules.
In the past three years, 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.
MONTEREY, CA - Health and nutrition are becoming increasingly important to consumers, and in response, menus across the foodservice landscape are now focusing on fresh produce trends, giving many opportunities for citrus flavors in both dishes and beverages. Offering over 40 varieties of premium citrus, Sunkist has announced that it will showcase fresh citrus trends in foodservice at this year's PMA Foodservice Conference & Expo July 24-26 in Monterey.
“Consumer demand for fresh has inspired chefs to use our citrus across all parts of the menu, from savory and sweet dishes to alcoholic and non-alcoholic beverages,” says Sunkist Manager of Advertising & Public Relations Joan Wickham. “Chefs are inspired by the versatility of citrus and are incorporating lemons, in particular, in many exciting ways to brighten flavors and respond to evolving consumer palates.”
Fresh lemon, in particular, is livening up menus this summer. The National Restaurant Association’s 2015 Culinary Forecast, which predicts culinary trends for the coming year based on a survey of 1,300 professional chefs nationwide, listed gourmet fresh lemonades as this year’s top non-alcoholic beverage trend. Beyond beverages, Sunkist says lemon juice and zest are also being incorporated into appetizers, entrées and desserts to add fresh flavor, reduce sodium and fat or simply enhance taste. Sunkist offers both conventional and organic lemons year-round to meet this growing foodservice demand.
Those who visit Sunkist’s booth at PMA Foodservice can taste the versatility of Meyer lemons, a specialty lemon variety that is trending on menus nationwide. A cross between a Mandarin orange and lemon, Meyer lemons are sweeter and less acidic than conventional lemons. Sunkist Chef Robert Danhi will be serving up a refreshing Meyer lemon cocktail along with a paired Meyer lemon crostini bite.
“Diners are becoming more adventurous when it comes to food and beverages and eager to try new citrus varieties such as Meyer lemons and finger limes, a very unique variety that Sunkist is excited to be showcasing to foodservice trade for the first time,” added Wickham.
Finger limes, one of Sunkist’s recently added varieties, have a deep green exterior and light green interior flesh that can be described as citrus pearls. Also known as caviar limes, these pearls can be squeezed from the peel to add a vibrant, citrus burst of flavor to any dish. According to a press release, market availability of Sunkist® finger limes is currently very limited on this newer variety.
To learn more about Sunkist citrus, visit event booth #140 at this year’s PMA Foodservice Conference, or visit www.sunkist.com.
HOOD RIVER, OR - Brad Fowler, Hood River Cherry Company Co-Owner, offers AndNowUKnow a glimpse into the process of picking and shipping the perfect cherry.
For optimal ripeness, Hood River waits to pick until its cherries reach the perfect black color. The company won't begin the harvest until they reach 21-24% sugar content, right on the edge of maturity. Then, the cherries have to be cooled immediately in 34-degree water to preserve freshness.
All Hood River cherries are picked by hand, sorted by hand and the clusters are left together.
Check out the video at the top of the page to see this exclusive behind the scenes look!
SANTA MARIA, CA - Kalettes™, one of the industry’s hottest new vegetables, will be making its second return to this year’s PMA Foodservice.
Supported by Classic Salads (booth #36), Mann Packing (booth #139), and Ocean Mist Farms (booth #120), Kalettes will be on-hand for attendees to see what the hype is all about.
Tozer Seeds America, the company behind Kalettes, developed the product after more than a decade of research. Kraig Kuykendall, Sales Manager at Tozer Seeds, said the company is excited to get Kalettes in front of more foodservice professionals during the convention.
“Our goal is to connect with professionals who are at the forefront of the foodservice industry and influence food trends,” Kuykendall said in a press release.
The kale and Brussels sprout hybrid offers a sweet and nutty flavor profile, combining the best traits of each of its parent vegetables, according to a press release. Kalettes are not genetically modified and were developed by cross-pollinating Brussels sprouts with kale through traditional methods.
Tozer Seeds has exclusive marketing agreements with select companies to grow and market Kalettes. These companies include 4Earth Farms, Classic Salads, Mann Packing, Ocean Mist Farms, Southern Specialties, and WP Rawl. As part of the agreement, Kalettes seeds will be sold by Johnny’s Selected Seeds to small farmers and home growers.
NEWARK, DE - Produce Marketing Association’s (PMA) Research Center has been conducting quarterly surveys to measure the success of the eat brighter!™ campaign, and the second quarter is in.
The results? An average incline upwards of three percent in sales self-reported by participants, with some reporting increases as high as 11 percent, according to a PMA press release.
“This is an encouraging sign, and we’re thrilled that participants are able to take the eat brighter! assets, available through an unprecedented program agreement with Sesame Workshop, and turn it into results like these,” Cathy Burns, PMA President, commented in a letter to members. “Now that the program has been extended through 2018, we look forward to seeing positive growth in this trend as more kids and families experience eat brighter! in stores.”
The eat brighter! campaign, which allows members of the produce industry to include popular Sesame Street characters royalty free in any go-to-market strategies, has garnered a lot of attention from the media, having gone viral when Big Bird, First Lady Michelle Obama, and comedic sensation Billy Eichner created a Funny or Die Video. In fact, PMA reports, they were recognized with an Emmy nomination for their work on the eat brighter! comedic video, which can be seen below.
This put the eat brighter! program in front of the eyes of about 13 million Emmy viewers.
“With produce sales rising three percent on average for participating companies -- and with some reporting increases as high as 11 percent -- it's very clear that the eat brighter! campaign is working brilliantly,” First Lady Michelle Obama commented on the data results, according to PMA. “I am so thrilled to see Sesame Street and produce suppliers and retailers coming together to get our kids excited about healthy eating, and I look forward to seeing more companies come on board to grow the momentum. Thanks, Elmo and Big Bird!”
Since the program was launched, the PMA Research Center has conducted three quarterly surveys; a compilation of results include the following:
- Of the suppliers in market, 75 percent have reported an increase in year-over-year sales.
- Of the suppliers who have been in market for three quarters, the average increase is 5.3 percent.
One supplier reported that the ability to put a character and figure so well-known for a minimal fee has allowed for an increase in sales volume and merchandising capabilities with several retail outlets. “Customers participating in the program are anxious to continue building their collection of 'eat brighter!' items and other customers are anxious to take 'eat brighter!' labeled product and monitor its ability to increase engagement and sales."
PMA noted that it has heard from participants that full supply chain collaboration is essential in making a program like eat brighter! succeed, and President Cathy Burns expressed enthusiasm in her letter to talk to anyone who has not yet joined about how this movement can impact your business in the positive ways listed.
“Thank you to the 110 participants of this movement. Your courage in changing the way we market fresh fruits and vegetables is inspiring and appreciated,” she wrote. “Without your leadership, we wouldn't have the pleasure of reporting these recent successes.”
For those interested in learning more, or joining the eat brighter! movement, can click here to learn more. Cathy Burns will also be in Monterey, CA, this weekend for PMA’s Foodservice Conference & Expo, and happy to discuss the program and answer any questions.
LA CAÑADA FLINTRIDGE, CA - Allen Lund didn't start out with nothing, but pretty close. Having turned $1,000 into a multi-million dollar company that is run like family by family, AndNowUKnow's sister publication, The Snack Magazine, wanted to know what fuels this industry innovator and how an office manned by his children turned into today's Allen Lund Company.
Check out the full article in The Snack magazine by clicking here, or continue reading the full piece below.
Allen Lund's Ride to the Top
It all started with $1,000 in his pocket, the dream to make a better life, and six children at the home office answering the phone “Allen Lund Company.” Thirty-nine years later, Allen has grown his company from a small 3PL business headquartered adjacent to the LA Produce Market, to a company brokering 300,000 shipments a year with revenues in excess of $475 million.
“My love at the end of the day is produce - besides my family of course,” Allen laughs from across his oak desk in La Cañada Flintridge, California. “When I started this, it was the Wild West. There were a handful of brokers that controlled the market. And besides that, I had to do it without the ‘Internet, computer, fax, copier-type luxuries’ of today. It was your reputation and the telephone.”
Allen’s youngest child was only a year old when he went out on his own, and his wife Kathie had to take a night job in a plastics factory to keep the kids in Catholic school. His parents had been through the Great Depression and deeply instilled their values and concerns in Allen, which were ever present in him as he made the decision to take a once-in-a-lifetime chance.
“I told my wife that if I could book four loads a week, then the kids could eat."
"And that was my goal when I started. It was a huge leap of faith. I bought out a guy who was retiring and in the first month I had sold 100 loads,” Allen tells me. “When your goal is to feed your family, your true work ethic will reveal itself.”
Allen has come a long way since those first days in the home office and currently holds the post of President & CEO of Allen Lund Company, LLC, and Allen Lund Corporation. The company footprint has grown with 30 offices spread throughout 22 states.
Allen has also expanded the company’s value proposition with a software division, ALC Logistics, located in Charlotte, North Carolina. To support that venture, ALC Logistics entered into an agreement last year with Locus Traxx Worldwide to integrate real-time visibility, load temperature, and location tracking into its produce-industry designed TMS solution. The company continues to evaluate additional software options as customers’ needs present themselves.
From where Allen is standing, there seems to be no end in sight. And I think he is fine with that.
But Allen’s beginnings started long before his leap of faith. Allen originally cut his teeth as a truck driver in Utah, then through a church connection, he joined C.H. Robinson, which allowed him the know-how to work at every level of his own company whether it was tweaking the mechanics of the trucks to building relationships throughout the produce, food, and manufacturing industries.
While the company’s significant growth in the sector has been critical to Allen, his desire to maintain the family-run and family-owned atmosphere has always been essential. Bringing his sons Kenny, Eddie, and David into the fold along with his son-in-law Steve Doerfler has helped, not only to elevate the business, but also to extend the value of family into all facets of the operation.
It may not have been in their initial plans for the future, but somehow, they all found themselves tethered willingly to the family business.
All of Allen’s sons have a similar story. David had been working for Allen Lund since high school and though he left to attend Cal Poly Pomona, David tells me he always knew that he would return to Allen Lund. Kenny taught and coached for three years after graduating from LMU, but also found that his passion lay in the family business. Eddie went to Notre Dame, captaining the baseball team and was drafted by the Dodgers, but in the end it was Allen Lund that was his calling. Steve joined the family after he met Allen’s daughter, Christina, at the University of Portland. After a one-year exchange program in Austria they fell in love, got married, and Steve jumped on board with Allen.
“In reality, all of my kids have been in this since the beginning. Whether it was Saturday morning breakfasts before they came with me to the office, or summer jobs during high school, my success has not been achieved without them,” Allen tells me.
A third generation of Lund family employees may be in the works with Allen’s grandson, Kevin Peterson, whose current role is with ALC Logistics in sales and implementation.
“All the kids started at the bottom, working on the desk,” Allen says.
“It has given them more than just credibility, allowing them to see the inner workings of the business at so many levels.”
Allen’s ‘pick yourself up by your bootstraps’ mentality has paved the way for his hard working family of employees who are comprised of more than just his sons. With an eye always fixed on the future, Allen is continuing to build a legacy and a reputation, even more firm than his handshake.
“My dad can see the big picture faster than anybody I know,” Kenny Lund, VP of Support Operations, tells me. “He is great at reading people and situations, and that’s been key to his success.”
Luckily, Allen didn’t have to do it on his own. In addition to help from the kids, Allen’s wife Kathie also stood strong behind the entrepreneur and did the company’s accounting for years as the broker worked to gain momentum.
Kathie met Allen when he was a ride operator at an amusement park in Utah and Kathie was selling tickets to that ride. They had no idea that it was a ride they wouldn’t be getting off of for some time. Years later, a carrier that Allen had shared the story with, travelled to that roller coaster and took a picture with the carrier’s truck positioned in front of the roller coaster. He sent the picture to Allen and his wife. The memory now sits framed at Allen’s home in Utah as a fond reminder of just how far they have come and as a testament to the strong relationships they have built.
“Dad could sell ice to Eskimos,” Eddie tells me. It’s a phrase I have heard often when Allen’s name comes up.
“Dad defines what it means to have great relationships with your carriers and your clients.”
“He would always visit the carriers, always gave them Christmas gifts, and he kept driver gifts around just in case one came into town," Kenny says. "They never left our office without something.”
When the trucks were tight Allen could find them, and that was the result of the relationships he cultivated and maintained.
“He has always had a great understanding of the industry and how relationships weren’t just maintained during the good times, but the challenging ones as well,” David tells me.
And times were tough during the early years, especially before deregulation took hold in the 80’s under Jimmy Carter, then Ronald Reagan. Up until then, brokers could only handle exempt commodities. But before the sweeping reduction in price controls, entry controls, and collective vendor price setting in the United States transportation industry, small companies looked to their relationships to bridge the gaps in opportunities. As Allen Lund grew through the 80’s so did its portfolio of commodities that always included fresh produce. Now, about 45 percent of the business is produce.
“I used to say, ‘give me your hardest loads, your most difficult and cantankerous receivers, and I would find a way to make it work,’" Allen says.
"You have to earn the trust of the trucker, receiver, or company."
And in those years Allen booked more loads than he could handle, with only just three years in the market.
“But yes, the early days were quite an adventure. From the winos, drunks, and drug addicts creating an obstacle course around our first office down at the LA Produce terminal, to the intense competition from brokers much larger than we were at the time… It was a constant challenge,” Allen notes.
Allen moved the company to its current office building in La Cañada in 1979, and though the LA Produce Market location holds a place in Allen’s heart, he hasn’t looked back.
As the company moves into a new phase of growth with an expanding footprint and new relationships in mind, Allen tells me that he won’t be slowing the pace anytime soon.
“We need to hold our carriers and drivers to a higher standard and elevate the transportation industry for the benefit of the whole,” he says.
“Remember, the most important thing is the customer. Reputation is everything.”
As Allen looks to the future he aims to uphold one goal that influences the many. “I want to maintain that family-feel of this company, no matter how far reaching our footprint spreads. We’ve only come this far because of our greatest assets, our employees. I want to give them a good reason to walk through our doors, every day.”
With his foot firmly pressed on the gas pedal, I think we can all envision the direction that Allen Lund is headed.
And from where I am sitting, I don’t see them running out of diesel anytime soon.
CINCINNATI, OH - Kroger is hosting its own job fair across Ketucky and Southern Illinois to fill nearly 1,000 full-time and part-time positions.
According to the Courier-Journal, the retail chain has openings in almost all departments and will provide training to all new employees. Those that do work for Kroger will reportedly be eligible for benefits, in-store discounts, and career advancement opportunities.
As we previously reported, Kroger is in the midst of a growth spurt, with investments in Ohio, Texas, and plans to split its Southwest Division into a separate Dallas Division and Houston Division.
These jobs are in the southern but also midwest regions, including stores in the Louisville and Lexington areas, as well as Frankfurt, south Central Kentucky, and in Southern Illinois.
In total, 98 stores will be hiring on new staff, according to reports, and while the fair is being hosted this Saturday, July 25th, those who apply online before 11:59 p.m. on July 24th will receive a $5 Kroger gift card when attending their interview. It is requested by the company that those seeking to apply do so before the day of the fair.
According to WUKY, Kroger managers will be holding interviews on Saturday between 11 a.m. and 3 p.m. at several stores, including Kentucky stores in all of the Lexington locations, Nicholasville, Georgetown, and more. Applications can be filled at jobs.kroger.com.
SACRAMENTO, CA - The California Leafy Greens Marketing Agreement (LGMA) saw the lowest amount of citations on record for the 2014/2015 year, according to its Annual Report.
“It’s our strong belief that the combination of comprehensive training, frequent audits and the requirement that all citations be corrected is what’s behind the high rate of compliance and continued improvement LGMA members have experienced over the years,” Scott Horsfall, LGMA Chief Executive Officer, said in a press release. “The number of citations issued has continually been falling since the inception of the LGMA in 2007.”
Representing less than half a percent of the total checkpoints verified during the entirety of LGMA’s audits for the year, the report showed only 370 citations were issued total of the nearly 75,000 food safety checkpoints audited at California leafy greens farms.
Details of what the LGMA’s Annual Report entails and what was found for the 2014/2015 year can be seen in the short video below:
According to Horsfall, the information found in the report, which provides an analysis of the mandatory government audits conducted through the LGMA program, is made public to demonstrate transparency.
“To be clear, the LGMA system requires that all citations be corrected,” said Horsfall. “So, in the end, the compliance rate for every LGMA audit is actually 100%.”
A closer look at the report numbers shows:
- Each LGMA member was audited an average of 5 times during the year.
- A total of 467 audits were conducted over the year.
- 99.51 percent of checkpoints were verified as compliant with LGMAfood safety metrics.
- LGMA members averaged less than one citation per audit.
Horsfall noted that the information allows the LGMA to focus its training efforts to the areas where it’s most needed, and that continuous improvement and vigilance are both core values for the leafy greens industry.
“The trends seen in the LGMA’s latest analysis are positive and clearly demonstrate the industry's commitment,” he said in the release. “At the same time, growers and shippers recognize they must continue to do everything possible to mitigate risks and protect public health.”
The full report is available online here, for those who wish to read more in depth, as well as more information about LGMA activities.
JAPAN - If you went to the grocery store today, picked up a tomato, and heard a gruff farmer’s voice say hello, would you be a little disturbed? Well, if you were in Japan that little talking tomato might just be what literally talks you into buying a whole bunch of veggies.
In a unique in-store promotional tool, Japanese developers Suda Lab and Hakuhodo i-studio’s HACKist creative lab have developed what they call, “the Talkable Vegetables.” With this tool, the voice of the farmers that actually grew the produce tells the consumer where the veggies are from and what makes them special.
"The vegetables, placed on a display stand consisting of specially designed wooden crates will, when you touch them, address you affably in the voices of the farmers who grew them,” Hakuhodo says in a press release. ”They will tell you the secret of why they taste so good.”
See the talking veggies for yourself in the video below:
How does it work, you’re wondering?
When the moisture in human skin makes contact with the vegetables, it creates an electrical signal for the vegetable to play its pre-recorded audio.
According to the developers, this one-of-a-kind technology makes it possible for:
- Consumers to confirm a farm product’s safety and trustworthiness by listening to the information from the farmer.
- Consumers to get a sense of the farming environment, origins, and values of the produce.
- Customers to enjoy a fun, next-generation experiences of vegetables themselves becoming part of the retail system.
By surprising customers with the Talkable Vegetable, vegetable sales also rose just as surprisingly. WhatDesignCanDo.com reports that with this innovation, sales rose as much 250 percent in some Japanese supermarkets.
Will this interesting innovation make its way over to a grocery store near you? Only time will tell, but take note next time you hear an unexpected voice in the produce aisle.