BENTONVILLE, AR - Due to the changes caused by the pandemic, grocery delivery has gone from a burgeoning sector to a mainstay at retail, and companies like Walmart are going all in when it comes to gaining a competitive edge in the market. To bolster its position, the big-box retailer announced the launch of its new Walmart GoLocal delivery service, bringing goods to businesses of all ranges.
“In an era where customers have come to expect speed and reliability, it’s more important than ever for businesses to work with a service provider that understands a merchant’s needs,” said John Furner, President and Chief Executive Officer, Walmart U.S. “Walmart has spent years building and scaling commerce capabilities that support our network of more than 4,700 stores, and we look forward to helping other businesses have access to the same reliable quality and low-cost services.”
Walmart GoLocal is built on the retailer’s proven ability to execute delivery capabilities at scale with efficiency, noted the release. In just three years, Walmart launched and scaled delivery and Express delivery for its customers on 160,000+ items from more than 3,000 stores, reaching nearly 70 percent of the U.S. population and growing using its existing delivery network, including drones, autonomous vehicles, and market fulfillment centers.
“We’ve worked hard to develop a reliable last-mile delivery program for our customers,” said Tom Ward, Senior Vice President, Last Mile, Walmart U.S. “Now, we’re pleased to be able to use these capabilities to serve another set of customers—local merchants. Be it delivering goods from a local bakery to auto supplies from a national retailer, we’ve designed Walmart GoLocal to be customizable for merchants of all sizes and categories so they can focus on doing what they do best, leaving delivery speed and efficiency to us.”
According to the release, this white-label delivery as a service offering empowers businesses to grow using Walmart’s delivery capabilities and nationwide coverage at competitive pricing. This includes delivery on a range of assortment, including those with size and complex requirements, as well as the flexibility to meet varying timelines. The business will also rapidly expand to offer additional innovative offerings.
The new launch is an integral part of the company’s overall strategy, which includes diversifying its revenue streams and profit pools with initiatives like Walmart Connect and Walmart Fulfillment Services. Already, Walmart GoLocal has established a number of contractual agreements with national and enterprise retail clients and is currently accepting select new merchant partners.
How will this new service advance Walmart’s position in the skyrocketing delivery service market? AndNowUKnow will provide you with the latest details.
ISSAQUAH, WA - With everything from weather disruptions to labor challenges and government policy changes impacting fresh produce supply chains daily, our industry is well-equipped to pivot on a dime. Even so, the effects of the COVID-19 pandemic have proved to be persistent, and, as such, we are now staring down a whole new set of challenges. One primary suspect, as Vanguard International explains, is the movement of containers amidst an unprecedented surge in shipments globally.
“The supply demand was unprecedented. It was like taking back-to-school and holiday predictable demand periods, putting them together, and that still didn’t properly represent demand levels,” shares Tim Clarke, President of Vanguard International USA.
This demand surge is not exclusive to fresh produce; all industries across the globe have experienced shipping container challenges in the past several months, which has even further exacerbated the situation. As Vanguard puts it, demand went through the roof and the supply chain was caught off guard.
According to a company press release, demand for products out of the Greater Asia regions has been so strong that freight rates can be upwards of $20,000 for a container on the spot market, representing a quadrupling of ‘normal’ rates in many instances. Rising demand for shipping containers was so strong that many steamship lines would load empty containers on vessels just to get them back to Asia as fast as possible to be reloaded.
“The demand has just continued to push freight costs up and up and to date we still have not seen a ceiling,” comments Clarke. “One carrier source we work with shared that the demand on the frozen food industry side of things is so high, [carriers] are being offered $6,000 over their current rate and noted they have not found the top of what price will be offered. Luckily, they have continued to work with us within our given contracts because they are looking at our long-term relationship, but this is not the case in every scenario.”
In the U.S. market as of the last week of July, there were 3,000 full containers sitting on rail lines just outside of Chicago that caused train traffic to completely halt, the press release continued. These containers were unable to be unpacked because storage facilities are so full and there is no available warehouse space.
We are also seeing a shortage of container chassis. Containers normally come off ships, but their return is so delayed that operators cannot take the containers off the boat, and when they do, there is no guarantee a chassis will be available to move it.
As Vanguard seeks to answer the question of “where in the world is my shipping container?” the company has issued further insights which ANUK will be sharing with you in the coming days.
SALINAS, CA - Greenhouse is a sector that is constantly hitting new heights, and Taylor Farms knows it. Showing its interest in the market, the fresh purveyor recently revealed a key investment in Pure Green Farms, marking its expansion into greenhouse-grown offerings.
“We’re excited to venture into the industry of indoor growing with this investment,” said Bruce Taylor, Founder and Chief Executive Officer, Taylor Farms. “Our customer partners have asked for a national solution, and this is our first step.”
This expansion into the greenhouse sector will work to complement Taylor Farms’ existing 122,200 crop acre field grown program and its 16 salad producing operations across North America, according to a press release.
Pure Green Farms runs a climate-controlled facility in South Bend, Indiana, equipped with high-tech machinery that grows, packs, and ships leafy greens year-round. The grower’s first harvest took place in March 2020 and operates on a site that can extend up to 300 acres. The operation currently produces popular greenhouse leafy green varieties using its automated greenhouse system.
“We are thrilled to work alongside an industry leading company like Taylor Farms,” commented Joe McGuire, Chief Executive Officer, Pure Green Farms. “We know this is just the beginning of a fantastic relationship with Taylor Farms and we’re looking forward to continuing to address the increasing demand for local product offerings.”
Foraying into greenhouse growing, what will be Taylor Farms’ next move in the sector? Stick with AndNowUKnow to find out.
LA CAÑADA FLINTRIDGE, CA - One of the most dynamic challenges of this year for our industry has been the supply chain’s fluidity and rates. While we may lack a crystal ball, we do have bellwethers, and one helping us detect a change in the winds is Kenny Lund, Executive Vice President of the 45-year-strong family owned and operated Allen Lund Company.
“While we are watching the economy quite closely, I think we’ve hit the high,” Kenny tells me, pointing to record rates in May and June as what he is confident was the peak, and sharing the silver lining to that estimate. “We’ve already gotten through it, I believe. Class 8 truck sales, both new and used, have been good, which means truckers are buying more trucks and adding capacity. That, in turn, means they have drivers, which is a good sign.”
As we reported recently, rates saw an increase upwards of 30 percent this year and supply chains have been, and still are, significantly challenged in getting products to market. As a family company which sees both its employees and customers as an extension of itself, Kenny previously shared how the “family” has been strained.
“We have a tagline that says ‘we treat your loads, your product, like its family,’ and it has been a very challenging year for all,” Kenny reflects, telling me that a bright takeaway from those hurdles shines through—one that sounds familiar. “Relationships matter more than technology. Technology is great; it’s a strong aid, but it’s people that get things done. Through high prices and challenges, through the ups and downs, it’s relationships that will mean a successful recovery.”
Additional signs for hope that we are closer to this than we might think, Kenny points out, are increasing loads in Texas as the population and business have expanded.
“In the produce world, there’s a lot more churn in location in terms of product origin,” Kenny observes, sharing that California policies, on the other hand, continue to put stress on the chain. “California is continuing it’s war on diesel engines, but we are watching closely what happens as the state approaches its recall vote this fall. The good news is that, for better or worse, the pandemic has reminded people how important the supply chain is.”
As we continue to monitor this and other areas impacting the produce industry, AndNowUKnow will be sure to report the latest.
FRESNO, CA - The produce industry plans for both what is happening now and what it expects to happen in the future. As companies plan out their strategic expansions, marketing has a huge role to play. To learn more about how marketing helped Trinity Fruit Company’s growth, I turned to Angela Hernandez and Jeri Elsasser.
“I believe marketing for the produce industry is an absolute MUST—if you aren't advertising in trade media or participating in industry trade shows and events, you aren't staying relevant,” Angela, Director of Marketing, told me. “If you aren't moving forward, you're getting left behind. We know companies must stay on the buyers' minds if you are currently doing business, and being on their minds is CRITICAL if you hope to do business in the future.”
Jeri added that, from a consumer perspective, the industry is finally at a point where it is able to tell shoppers the stories behind the companies feeding them.
“Through creative branded packaging and social channels, we’re able to tell them what makes our company and our brand unique,” the Creative Director explained. “For so long, the industry has relied on volume-fill fruit or vegetables with the best flavor, color, and size at the best price. For many, the only way to identify a company or brand was with a simple PLU sticker or elastic band, but I believe shoppers are becoming more brand-conscious and even variety-conscious in the produce department. It is worth the marketing investment to educate consumers at the retail level.”
Trinity Fruit has seen success from its own marketing endeavors, especially as the company has grown its commodity portfolio over the last five years.
“We’ve added products such as frozen pomegranate seeds and dried pomegranate seeds, the first of which allowed us to toe the waters in the e-commerce world and wrap our heads around direct-to-consumer marketing,” Angela imparted. “In 2020, during the pandemic, we used that B2C knowledge to help us create The Fruitful Market, a sister company that sends fresh fruit boxes directly to consumers' doorsteps as subscriptions, individual shipments, or as a gift. We also have some new items in the works that should be rolling out later this year—stay tuned!”
Outside of its own successes, I wondered where both women see produce marketing headed.
“Sustainability in packaging is a major priority,” Angela commented. “While we are continually hunting for more sustainable packaging that maintains the integrity of our products, we are confident that Trinity Fruit Company is doing its part to inform consumers which materials are recyclable. We have partnered with the Sustainable Packaging Coalition (SPC) to add the How2Recycle logo to our packaging to educate consumers to help alleviate problems in the recycling stream.”
Jeri added that, “I know that consumers are becoming more brand loyal, willing to follow their favorite brands on social media. I see that trending because more retailers are looking for companies with brands that have a presence on social media.”
As Angela said, stay tuned for more news from this industry mover and shaker.
HOUSTON, TX - After making a significant impact on Sysco’s growth, Nelson Peltz, Chief Executive Officer and Founding Partner for Trian Fund Management, and Joshua D. Frank, Co-Head of Research and also a Partner for Trian, revealed that they will be stepping down from the company’s Board of Directors. With confidence in the future direction of the distributor, the two leaders will leave the Board after more than five years of service.
“We believe that Sysco is very well positioned for the future under CEO Kevin Hourican’s leadership,” said Peltz. “We are confident that the plans announced at the May 2021 investor day to accelerate growth through five key strategic pillars—digital, products and solutions, supply chain, customer teams, and future horizons—funded by $750 million of cost reduction—are the right ones to expand Sysco’s competitive advantages and fuel-sustained growth. As a large shareholder and strong believer in Sysco’s future, Trian looks forward to ongoing engagement with Kevin and his team.”
According to the release, Peltz and Frank have served on the Board since August 2015 and have made significant contributions to the company’s business strategies and transformation.
Frank also commented on the leaders’ departure.
“Nelson and I would like to thank Kevin, Chairman Ed Shirley, and all of our highly qualified colleagues on the Board of Directors over the past six years for their collective efforts on behalf of all Sysco stakeholders,” he added. “We believe the company is in a strong position for continued success.”
Peltz and Frank indicated that the decision to step down was driven by their confidence in Sysco’s leadership, business transformation, and continued operating momentum.
“Nelson and Josh have been great partners and important contributors and we thank them for their Board service,” said Kevin Hourican, President and Chief Executive Officer. “We have valued their guidance and feedback on our business transformation strategy, and we look forward to the continued dialogue with Trian as an ongoing Sysco shareholder.”
For more developments from across the supply chain, keep a page open for AndNowUKnow.
ONTARIO, CANADA - Connection. This is the word I heard continuously throughout my recent interview with Leona Neill, Director of Marketing and Packaging at Red Sun Farms. We sat down to discuss the Southeast Produce Council’s (SEPC) upcoming Southern Innovations event, and it’s safe to say that the company will be forming valuable connections with attendees from across the supply chain.
“We look forward to featuring our updated packaging, which includes key design elements based on retailer feedback,” Leona told me. “Our team will also share some of the incredible work at our farms around water and nutrient recycling, minimal food waste due to pruning practices, and lighting technology.”
The team plans to build on existing and new connections by sharing some of the developments made since they last met. This includes the execution of Red Sun Farms’ new logo, the rebranding of its packaging, and supporting the needs of its retail partners in a time when produce demand is constantly changing.
Of course, Red Sun Farms is helping to lead the charge in the evolution of consumer demand, bringing unique, coveted varieties to market, such as its Sweetpops.
“Sweetpops snacking tomatoes are all about delivering an explosion of flavor in a snack-size tomato,” said Leona. “This variety has already established a dedicated following of consumers who have connected with the brand and helped redefine the expectation of sweetness in tomatoes. The packaging on this new variety was designed with the millennial generation in mind, creating a connection and making the exploration of this tomato an experience.”
In bringing products such as this one to market, Red Sun Farms builds on the shared vision and passion of a team in Mexico and Canada who are committed to selling the very best high-tech greenhouse peppers, tomatoes, and cucumbers with a year-round supply. The leadership team has since built a vertically integrated business model that ensures quality, food safety, flavor, and supply throughout the year, and brings these standards and business models into every new venture.
As Red Sun Farms hits the show floor at SEPC, it will certainly place these values at the forefront of its business connections.
“Southern Innovations is filled with renewed energy to build and grow customer programs and provides an opportunity to gain new educational tools. SEPC has demonstrated a commitment to improving these elements at every show, and it has been our privilege to work with the organization since its first show,” Leona continued. “There is a unique atmosphere built around southern hospitality and our extended produce families. The excitement of coming together again with such an incredible industry makes this event a must-attend in our trade show calendar.”
Looking to connect? Be sure to check out booth #110 at Southern Innovations 2021.
WASHINGTON, DC - Today, the U.S. Department of Agriculture (USDA) has announced that Arizona-based company, Lorex Produce has satisified a $48,826 reparation order issued under the Perishable Agricultural Commodities Act (PACA) connected to unpaid produce transactions.
Direct from the USDA Agricultural Marketing Service:
The Rio Rico, Arizona, company can continue operating in the produce industry upon applying for and being issued a PACA license. Francisco Alejandro Lopez Rodriguez and Enok Aristiga Ayala were listed as members of the business and may now be employed by or affiliated with any PACA licensee.
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.
Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named, responsibly connected individuals. USDA also requires any unlicensed company that fully satisfies all unpaid reparation awards to obtain a license if it continues to operate in the industry.
For more information, and to read the release in its entirety, click here.
DENVER, CO - The potato category serves as a bellwether of change in the produce aisle, and as such, we should be keeping a close eye on the market to keep pace with evolving demand. Potatoes USA has us covered, recently releasing a report to outline movement across the potato category this past year.
In the report, which outlines data collected by IRI, Potatoes USA stated that from July 2020 to June 2021, potato sales increased in dollars by 3 percent, but declined slightly in volume by 0.3 percent compared to the previous July–June marketing year. Elevated purchasing that occured in 2020 played a role in this slight decline, resulting in falling volume sales across three categories. However, compared to sales prior to the pandemic, buying cycles show an increase in value and volume. Consumers reportedly bought an additional 577 million pounds of potatoes in this period compared to the year prior.
According to Potatoes USA’s release, refrigerated potatoes had the largest growth, with a 10.6 percent increase in dollars and a 5.3 percent increase in volume. The frozen potato segment also grew, with dollar and volume sales increasing by 6.3 percent and 4.6 percent, respectively. This growth came even despite an increase in overall average pricing. Sales of prepared sides increased compared to the same period in 2019 and 2020, but have not returned to pre-pandemic levels just yet. The two largest volume-driving categories are chips and fresh potatoes, which each increased in dollar sales but fell in volume by 1.8 percent.
The russet category, which makes up 60 percent of the volume share of fresh sales, fell by 3 percent in dollars and 3.4 percent in volume. The second largest fresh potato variety, red potatoes, also fell in dollars by 3.1 percent and volume by 1.9 percent. On the flipside, yellow potato sales increased by 9.7 percent and volume increased by 7 percent. Additionally, petite and medley potatoes saw double-digit increases in both value and volume. Potato bags from 1 lb to 4 lbs grew with an 11.5 percent increase in dollars and a 7.4 percent increase in volume.
How can we use growth in the potato category to drive basket share across the produce aisle? Keep reading ANUK as we uncover the answers.
GRAND RAPIDS, MI - Watching an industry leader grow in tandem with its employer is a beautiful thing. This is the case with SpartanNash’s Tyler King’s growth trajectory, as the company recently promoted the longtime team member. King will exit his role as Senior Director to assume the position of Vice President of Finance.
In this role, King will also serve as Finance Business Partner for the company, providing advisory for its retail business segment. This operation is led by Executive Vice President and General Manager of Corporate Retail Tom Swanson. King will offer strategic insights to support SpartanNash’s 148 retail stores in attaining financial goals and company objectives, a press release explained.
King joined SpartanNash in 2007 as Manager of Retail Inventory. Since then, he served as Director or Retail Inventory from 2015 to 2018, Director of Retail Accounting from 2018 to 2020, and most recently as Senior Director of Finance from 2020 to 2021. He began his career at Borders Group as Associate Director of Finance and earned his bachelor’s degree in Business Administration from Saginaw Valley State University.
As he takes on the mantle of VP of Finance, King will report to Executive Vice President and Chief Financial Officer Jason Monaco.
“Tyler’s experience in delivering strong company financials has helped SpartanNash’s retail business segment establish a go-forward strategy that is grounded in sound financial decisions,” Monaco said. “As a part of our People First culture, we recognize potential and are committed to growing top talent. We are excited for this next step in Tyler’s career with SpartanNash as we continue to drive the customer growth strategy and operational excellence.”
Congratulations to Tyler King on landing this new role!