INDIANAPOLIS, IN - Jingle bells won’t be the only things rocking around the house this year, as consumers will be dancing their socks off when they hear that Kroger delivery is coming to the Indianapolis, Indiana, area. The retailer is growing its fulfilment network with a new facility that will extend its delivery “spoke” and bring fresh food to more doorsteps.
“We’re proud to welcome the Kroger fulfillment network to Indiana,” said Colleen Juergensen, President of Kroger’s Central Division. “The new service is a wonderful addition to the expanding digital experience available to Kroger customers. The network’s delivery spoke will provide unmatched customer service and improve access to fresh food in areas eager for the variety and value offered by Kroger.”
The 48,000-square-foot facility will collaborate with the “hub” in Monroe, Ohio, to connect customers with fresh food. At launch, Hoosiers in 35 Central Indiana ZIP codes can experience Kroger Delivery. The delivery network will also continue to leverage stores and third-party partners to deliver certain orders.
“This fulfillment center is another example of how Kroger is transforming e-commerce in the grocery industry using a vertically integrated network to provide a reliable and consistent delivery service that repeatedly receives favorable customer feedback like a best-in-class Net Promoter Score. Our expansion in Indiana represents our commitment to delivering fresh, affordable food in both existing and new geographies,” said Bill Bennett, Vice President and Head of E-commerce. “As our e-commerce business accelerates, we’re excited to continue expanding our reach and loyalty by delivering our customers an exceptional service for as little as $6.95 powered by high-tech facilities.”
Kroger’s expansion in Indianapolis represents an extension of a partnership between Kroger and Ocado, a press release noted. The delivery network relies on highly automated fulfillment centers. At the “hub” sites, more than 1,000 bots whizz around giant 3D grids, orchestrated by proprietary air-traffic control systems in the unlicensed spectrum.
To learn more about the new facility, click here.
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WASHINGTON, DC - Here at ANUK, we’ve been keeping a close eye on the supply chain hurdles and the actions the United States government has taken to alleviate the challenges. As we reported last month, President Joe Biden and Vice President Kamala Harris and their administration announced a set of concrete steps to help the U.S. ports, waterways, and freight networks. The government is continuing to focus on these issues as the U.S. Department of Transportation and U.S. Department of Agriculture hosted a roundtable discussion last week. In response, the United Fresh Produce Association voiced its support of the initiatives.
“United Fresh supports continued efforts by the Biden Administration to address the challenges impacting our West Coast ports that are vital to the fresh produce supply chain,” commented United Fresh in the release. “As Secretary [Pete] Buttigieg and [Tom] Vilsack say clearly in their letter, ‘The poor service and refusal to serve customers when the empty containers are clearly available is unacceptable.’ For both those engaged in imports or exports, the current situation is untenable. That is why United Fresh has also lent its support to the Ocean Shipping Reform Act, which recently passed the House with overwhelming bipartisan support.”
In the letter, Secretary of Transportation Buttigieg and Secretary of Agriculture Vilsack urged the world’s leading ocean carriers to help mitigate disruptions to agricultural shippers of U.S. exports and relieve supply chain disruptions created by the COVID-19 pandemic by restoring reciprocal treatment of imports and exports and improving service.
To address the issues being faced on land, Buttigieg, Labor Secretary Marty Walsh, and White House National Economic Director Brian Deese met with trucking industry leaders at the White House on December 16. The discussion focused on efforts to retain and recruit new drivers and address other longstanding workforce challenges.
“In addition, United Fresh is encouraged by Secretary Buttigieg’s collaboration with the trucking industry to find solutions to help address labor challenges to ensure we have a workforce to feed our country and ensure that American consumers have access to our industry’s bounty of fresh produce,” continued the association. “We look forward to continuing to work with the Administration and Congress to address these challenges throughout our supply chain.”
Keep an eye out for ANUK as we report on the latest development concerning all things fresh.
WASHINGTON, DC - Multiple companies in the fresh produce industry recently had sanctions imposed on them by the U.S. Department of Agriculture (USDA) under the Perishable Agricultural Commodities Act (PACA). The three companies were sanctioned for allegedly failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards totaling $50,869.
These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA.
Direct from the USDA Agricultural Marketing Service:
The following businesses and individuals are currently restricted from operating in the produce industry:
- Promised Land Farms, operating out of Corona, California, for failing to pay a $22,269 award in favor of a Texas seller. As of the issuance date of the reparation order, Juan Carlos Torres was listed as a member of the business
- Los Traviesos Produce, operating out of Los Angeles, California, for failing to pay a $21,600 award in favor of a Florida seller. As of the issuance date of the reparation order, Laura Villegas was listed as the officer, director, and major stockholder of the business
- Fresh by Nature, operating out of Norco, California, for failing to pay a $7,000 award in favor of a Missouri seller. As of the issuance date of the reparation order, Manuel Pinon was listed as the officer, director, and major stockholder of the business
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. 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.
By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
For contact information, and to read the release in full, click here.
NORTH AMERICA - ’Tis the season to give—in hope, in gratitude, and in merriment. And we can’t think of anything much merrier than a contest and yearbook to see what the produce industry might have hidden in its holiday closet. Yes, we are hosting an Ugly Sweater Contest!
Of the submissions, two will ultimately be selected, one each from the buy-side and supply-side of our industry, for $100 cash. While the more festive the better, if you are lacking in tinsel and bows, a sweater that you think might be worthy of an Urkel costume will certainly suffice. The more variety, the more we all come out winners.
No lumps of coal here, all photos will be displayed in our Holiday Yearbook, so get to trimming, hot-gluing, and strike a pose.
Please send your yearbook photo submissions to [email protected] by Friday, December 24, at 3 p.m. PST, and the final winners will be selected before we ring in the New Year.
We cannot wait to see what we are about to be served by this unique industry that always puts the “play” in work hard, play harder!
EMERYVILLE, CA - Fortifying your leadership is one of the best ways to advance your growth strategies. This is precisely what Grocery Outlet has done, as the company recently announced that Pamela Burke will become its new Chief Stores Officer, which is a newly created position.
Burke previously served as Chief Administrative Officer and General Counsel. According to a press release, she will enter her new role as of January 1, 2022, and will report to RJ Sheedy, President. In this role, she will be responsible for the support of and relations with independent operators and their stores across all geographies.
The new Chief is a proven leader who has deep experience with the company’s independent operator model and understands the importance of promoting independent operator autonomy and maintaining a strong, collaborative relationship.
Concurrently, Heather Mayo, Chief Sales and Merchandising Officer - East, has made the decision to leave Grocery Outlet in early March 2022. Mayo will be transitioning her responsibilities to functional leaders at the local and corporate level.
These changes are expected to support the company’s growing team of independent operators and the expansion of its store base nationally.
Through the use of enterprise-wide resources, combined with the ongoing commitment to localized decision-making, Grocery Outlet will continue to be well-positioned to drive sustained growth and profitability.
Chief Executive Officer Eric Lindberg commented on these operational shifts.
"2021 marks Grocery Outlet’s 75th year in business and at the heart of our success has been the knowledge, skill, and autonomy of our independent operators," said Lindberg. "As we look ahead toward our next 75 years of growth, this new organizational structure allows us to more effectively support our operators in growing their businesses while facilitating local decision-making and independent operator independence. Pam has done an exceptional job leading several business functions and coordinating support to our independent operators. As such, I am confident she will make valuable contributions in her new role. I also want to thank Heather for her efforts during her tenure at Grocery Outlet and wish her the best in her future endeavors."
We wish the best of luck to these two Grocery Outlet executives!
WINDSOR, ONTARIO, CANADA - Working to better provide the industry with sustainable solutions, LABELPAC uses all paper label materials for its PLU labels. The Canadian-based company wants to offer growers a solid solution in the wake of ever-changing anti-waste laws at home and abroad.
“Most companies either use plastic for labels and waste liners and others use paper for labels, but also use a plastic waste liner which is not environmentally safe,” stated Sam Sleiman, President. “LABELPAC has managed to keep both materials paper, which offers an environmentally safe solution.”
The company noted France’s passage of a law that becomes effective January 2022, which will ban all plastic stickers unless said stickers have been manufactured with home compostable materials or paper.
According to a release, LABELPAC is successfully eliminating all plastic in its PLU label manufacturing.
“Our waste liners are also paper—we use ZERO PLASTIC! We have been offering this for many years anticipating what the future has now proven to us. Any plastic is inferior to a long-term solution and cannot be compared to using paper,” continued Sleiman.
Keep reading AndNowUKnow for the latest updates across the industry.
WASHINGTON, DC - Several companies in the fresh produce industry recently had sanctions imposed on them by the U.S. Department of Agriculture (USDA) under the Perishable Agricultural Commodities Act (PACA). The four companies were sanctioned for allegedly failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards totaling $113,870.
These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA.
Direct from the USDA Agricultural Marketing Service:
The following businesses and individuals are currently restricted from operating in the produce industry:
- JB Produce, operating out of Denver, Colorado, for failing to pay a $16,999 award in favor of a California seller. As of the issuance date of the reparation order, Daniel Perez-Perez was listed as the member and/or major stockholder of the business
- UMV Foods Corporation, operating out of Doral, Florida, for failing to pay a $17,215 award in favor of a New Jersey seller. As of the issuance date of the reparation order, Damian Vega was listed as the officer, director, and major stockholder of the business
- Fong Shing International Corp., operating out of Maspeth, New York, for failing to pay a $53,540 award in favor of a Texas seller. As of the issuance date of the reparation order, Minh Thai was listed as the officer, director, and major stockholder of the business
- Mercatropic Corp., operating out of Mission, Texas, for failing to pay a $26,116 award in favor of a Florida seller. As of the issuance date of the reparation order, Roberto De La Torre was listed as the officer, director, and major stockholder of the business
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. 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.
By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
For contact information, and to read the release in full, click here.
NEW ZEALAND - A significant investment is on the horizon for T&G Global. Noting how global demand for branded apple varieties such as Envy™ continues to rise, the grower and marketer has investments planned across its apple operations, including $100 million for a new state-of-the-art packhouse.
“The multi-million-dollar investment we are announcing today clearly demonstrates T&G’s commitment to expanding its premium apples’ category well into the future to create value for our growers, consumers, and shareholders,” stated Gareth Edgecombe, Chief Executive Officer. “As well as the $100 million investment into our world class automated packhouse, we are committing millions to orchard redevelopment across 300 hectares in the Hawke’s Bay and Nelson over the next four years to support our Envy growth strategy. This includes 2D plantings of Envy to allow for future automated technology.”
The packhouse, a release explained, is adjacent to T&G’s current Whakatu East site in the Hawke’s Bay. It will be one of the largest in the southern hemisphere and will house world-leading automation technology. The new facility will improve productivity and allow T&G to accommodate increasing volumes of Envy and other apple varieties.
Edgecombe explained that independent forecasting showed an additional 1.9 billion Envy apples will be needed by 2030, meaning there is a real need for investment now to create a future-ready, technology-enabled premium export apples business.
“Further investment in new orchard automation equipment, including eight new picking platforms and ten hydraladas ahead of the 2022 picking season, will also enable greater labor efficiencies and improved health and safety, not only during picking, but across a range of orchard activities,” he continued. “T&G’s strong partnership and working relationship with our independent growers has played a critical role in growing the Envy brand and our wider apples export business over the years. Our growers are a key part of our success and will play a pivotal role in supporting the execution of our growth strategy moving forward.”
In addition to developing T&G-owned orchards, the company is working with other large-scale investors on opportunities to capitalize on growth, such as kiwi and the NZ Super Fund through FarmRight, who recently purchased 40 hectares of T&G’s orchards.
“The fact key partners such as NZ Super Fund are realizing the strong investment opportunity and potential demonstrates the strength of our strategy and future direction,” Gareth noted. “Most importantly, the expansion program we’re delivering has kaitiakitanga at its heart, with a focus on the care and guardianship of our people, our land, our natural resources, and our produce. By harnessing the latest in technology and automation we can create a safer workplace for our T&G whānau and make our business even more accessible and inclusive, as we actively recruit more Kiwis into our business.”
Edgecombe continued, noting the ways in which the company is making sustainable decisions.
“We’re further protecting our produce with the introduction of world-leading soft fruit handling technology, and we’re protecting our place through initiatives such as capturing water from the new packhouse roof to use elsewhere in our business, as well as using improved water filtration and modern waste-water treatment technologies. The use of solar power is also being considered, to reduce our reliance on the local network,” he said.
As for the future, Edgecombe is excited to see what’s next.
“This expansion program will create a huge legacy for future generations of New Zealanders, which is incredibly special and a big responsibility for us all. We have a fantastic high performing team of dedicated and committed people, an excellent strategy, and the knowledge, expertise, and energy to create this future. This is hugely exciting for T&G and for Aotearoa, and we’re looking forward to delivering this bold program of work,” he concluded.
Exciting times ahead for T&G! Keep reading AndNowUKnow as we cover the latest.
KINGSVILLE, ON - Scaling international growth is no small feat for trailblazing companies in the fresh produce industry—but it is an advantageous one. Expanding its prowess further onto the global stage in 2022, Mastronardi Produce® is eyeing a new market in which to develop clusters of controlled agriculture partnerships and facilities—the first of which is Panama and an agreement with investment firm AgriCapital Holdings Corp. to support the development of a new Agropark.
“There is no question that we need to address the growing concern of food insecurity, and controlled environment agriculture (CEA) is a prime solution that is poised for rapid growth,” Dean Taylor, Vice President of Business Development for Mastronardi Produce Ltd, stated. “As leaders in the industry, we are continuously looking for opportunities to deliver more, sustainably-grown produce to people in an efficient way. That includes finding new markets and helping them develop with our support.”
The new Agropark Panama is one of the many continued efforts by Mastronardi to advance sustainable methods that meet the growing demand for fresh produce. Panama is a market that is well-positioned to deliver on growth expectations, according to a press release. This positioning includes an ideal geographic location and the Panama Canal’s Connectivity platform—which allows goods to reach major markets within four days by sea.
The fast-growing Latin American economy is already moving a significant volume of goods to the U.S., including bananas and pineapples.
“We could not find a better advisor and ally for our project,” said Juan Carlos Mastellari, Managing Partner, AgriCapital Holdings. “We admire the Mastronardi team and the magic they have done with the SUNSET® brand.”
The vision behind Agropark Panama is multifaceted. To begin, it seeks to provide state-of-the-art infrastructure for farms that want to expand their growing operations but are confronting increasing limitations in the availability of labor for their CEA operations, the company noted.
AgriCapital will be leveraging Mastronardi’s insight and expertise for Agropark Panama—a project that is driven to be the first 100 percent clean energy agrologistics park in the world. In addition, this dynamic vision will help expand job creation in the rural areas of Panama and Central America.
Expansion on such a strategic front is just one way Mastronardi Produce generates increased value and stature in the fresh produce industry. And we look forward to seeing what else comes down the line in 2022.
WASHINGTON, DC - Alleging violations of the Perishable Agricultural Commodities Act (PACA), the U.S. Department of Agriculture (USDA) has filed an administrative complaint against Ayar Produce NY. The New York-based company allegedly failed to make prompt payment to 14 produce sellers in the amount of $720,226 from February to September 2020.
Direct from the USDA Agricultural Marketing Service:
Ayar Produce NY will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $165 million. PACA staff also assisted more than 6,600 callers with issues valued at approximately $169 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
To read the release in full, click here.