CINCINATTI, OH - Throughout the month of June, United Fresh hosted multiple sessions that addressed key issues within the supply chain. One such issue was transportation, and the discussion surrounding what needs to be done as we look at innovative solutions for future challenges. One of the speakers, Brian Kocher, President and Chief Executive Officer of Castellini Group of Companies, spoke with me regarding the transportation landscape.
“With the current global shipping market, containers and vessels are out of balance in certain geographies, and that's putting pressure on even the domestic transportation market in truck rates. So, that certainly is a challenge,” Brian began. “I think when you look at the broader economic challenges we see pressure from a continually shrinking driver pool, as well as a supply chain that demands flexibility.”
Castellini itself is constantly working on providing multiple nodes or distribution point centers so that, if one aspect of the supply chain shuts down, you have redundancy and can switch to another. Brian also noted that different operators, such as ghost kitchens, have different supply chain needs, which means that as an industry, we need to adapt and adjust to multiple demands.
“We’ve invested heavily in technology to make sure that we immediately have access to data. Castellini is dealing with tens of thousands of pallets a week, so we can’t just walk into a warehouse and demand to know where one pallet is,” Brian remarked.
As part of its technology platform, Castellini has the manage complete warehouse and delivery programs for a customer’s entire inventory—a must when delivering fresh produce is on the line.
“Castellini is built for variability,” Brian asserted. “We have a large portion of outbound distribution delivered via own driver network, but we supplement that with dedicated carriers for certain routes, and we supplement that further with brokered loads. We try to build our transportation network so that we can handle 90–95 percent of the variation in the produce supply chain. If a costs a little bit extra in the moment, it’s a more cost-effective solution for the long run.”
Throughout the United Fresh discussion, flexibility could not be emphasized enough. As Brian concluded, the more flexibility you have as a company, the more likely you’re going to withstand variation at market.
TRAVERSE CITY, MI - North Bay Produce is bringing value to displays and intriguing shoppers to add a few more items to their carts this summer. The undeniable quality of our robust portfolio of fresh vegetables is sure to be a boon for sales in any produce department.
Here’s What’s in Store.
We offer our delicious French beans, snow peas, and sugar snaps year round, in addition to Brussels sprouts in October through February, and Butternut squash January through July. All of our unique and tantalizing offerings are handpicked and selected by expert farmers, ensuring the highest quality fresh produce for our customers.
Each of these varieties is grown in Peru or Guatemala and harvested in the optimum location depending on the weather and time of year. The elevation and location of these farms create ideal conditions for growing the best-tasting vegetables in this region. We offer products that are clean and ready-to-eat, and come in microwaveable bags that feature a mouthwatering recipe.
Our production is certified by the highest standards, with a significant portion of these commodities coming from one grower. With an ally like North Bay Produce, retailers have the opportunity to build promotional plans specific to their needs, as we offer recipe cards, cook books, social media and print promotions, high resolution images for ads, and more.
Gear up to collect those shopper dollars by adding a North Bay Produce program to your roster.
Thank you for watching What’s in Store.
GERMANY - An abrupt executive transition has taken place at Lidl, as CEO Klaus Gehrig recently announced his unprecedented departure from the company. Following his resignation, Dieter Schwarz, the Owner of the parent business Schwarz Group who took control of the then-Lidl & Schwarz KG business in 1977, has stepped in to take over the role.
Schwarz will act as general partner until Gerd Chrzanowski, the designated successor and current CEO of Schwarz Group, can take over the mandate, according to Forbes.
Gehrig was allegedly known internally as the “Killer Whale” and was the top executive at Schwarz Group, which operates both the Lidl and Kaufland retail businesses. Following years of dedicated service with the retailer, he has been lauded as the driving force and architect behind the company’s impressive global growth.
According to the news source, Gehrig has decided to step down from his role following a disagreement over a “very important matter” that could not be resolved, and that Schwarz thanked the outgoing Gehrig for his “great development work” over recent years.
Cited by many as the architect of the Lidl and Kaufland empires that exist today, Gehrig has spearheaded much of the companies’ path to success, with Schwarz Group now having a retail presence in 33 countries around the world, with turnover of $148 billion.
Will we see more pivotal changes to come amongst the retailer’s leadership ring? AndNowUKnow will keep our eyes on the newswire for the latest.
WORLDWIDE - The team at ANUK has been closely following the volatility of transportation logistics, with prices soaring across freight, labor, and now, cargo. Recent reports have been circling on the rising costs of shipping containers, impacting transportation operations worldwide, and, as we know, fresh produce is not exempt.
The Wall Street Journal reported on the matter this week, offering insights from multiple logistics experts, each of which have a hand in transporting fresh food. The primary issue, as the article stated, is a gap in capacity for ocean-based shipping, ultimately creating what the news source writes will be a tight market for the remainder of 2021 and into 2022.
“Global trade right now is the hottest restaurant in town,” said Brian Bourke, who is the Chief Growth Officer at Seko Logistics, an Illinois-based operator that works in trans-Pacific shipments for industries including food and retail. “If you want to get a reservation, you need to plan it out two months in advance. Everyone’s trying to grab any spot they can, and they’re all spoken for.”
The news source went on to state that prices for a 40-foot container are quadruple what they were last year, topping $8,399 on July 1. Drewry Shipping Consultants, which operates out of London, referred to its current cost index, also stating that the cost to ship freight from China to Europe and the U.S.’s West Coast are reaching $12,000 per container, while some last-minute shipments have reported costs around $20,000.
As the buy-side maintains its urgency in implementing post-pandemic strategies, these experts have seen supply chain delays at shipping ports and distribution centers, which, they say, has contributed to the upward trend in costs for ocean-based cargo. And, with some shipments getting stuck in the ports for days or weeks at a time due to the influx of traffic, the availability of shipping containers continues to decrease.
“Everyone is spending much longer on round trips,” said Philip Damas, Head of the Supply Chain Advisors Practice at Drewry. “Containers are sitting on the water for much longer periods of time; containers are waiting at ports for much longer. Productivity in container shipping is deteriorating. Every failure is effectively creating ripple effects. It’s a vicious cycle.”
Damas explained that shippers continue pressing to get goods on the ships up until the moment they leave the port, contributing to the absolutely historical rates we see today.
“Now everything is overbooked,” he continued. “Shippers are desperate to book tomorrow. It’s more a bidding war than it is a traditional tariff, and this bidding war is accelerating. Some of these $23,000, $24,000 prices include the inland distribution cost, and that can easily add far more to the final cost.”
In conclusion, the news source posed one incredibly poignant question: Will this rise in pricing lead shippers to pull out of overseas shipping programs? As we keep an eye out for how these shifts will impact the fresh produce industry, keep clicking back to ANUK.
GOODLETTSVILLE, TN - Food insecurity remains a pressing issue in the U.S., and Dollar General has recently announced a new strategy to help in the fight against hunger. The retailer revealed that it would not only be partnering with Feeding America® and donating $1 million to the organization, but will be offering fresh produce to up to 10,000 communities over the next few years, with many of the stores located in USDA-defined food deserts.
“Food insecurity impacts communities across the country, and given that Feeding America projects that 42 million people may face hunger as a result of the pandemic, we want to be part of the solution for those facing this issue,” said Todd Vasos, Dollar General’s Chief Executive Officer. “With our extensive store footprint, often in communities others have chosen not to serve, Dollar General is uniquely positioned to help combat hunger by offering convenient access to a variety of nutritious foods at affordable prices. Our work with Feeding America builds on these efforts by providing in-kind donations of perishable foods to help nourish and feed those in need. Together with Feeding America and local community food banks, we look forward to making a measurable impact in the fight against food insecurity.”
With about 75 percent of the U.S. population living within a five-mile radius of a Dollar General store, the retail outlet is in a prime position to provide healthy food options to those who may not have had access due to their location. According to a press release, Dollar General currently features fresh produce in more than 1,300 stores, providing top 20 items that are typically sold in grocery stores and approximately 80 percent of produce categories carried by most retailers. Over the next few years, the number of stores will increase to more than 10,000.
To help further promote healthy living, Dollar General has partnered with a registered nutritionist to create DG Better For You meals, featuring healthier recipes for each meal of the day with items that are sourced from the retail chain.
Dollar General has also joined forces with Feed America to positively impact food insecurity concerns, especially in rural America. Through its partnership, the retailer will donate $1 million as well as donations of perishable and nutritious food to community food banks. Dollar General is looking to provide up to 20 million meals each year to help alleviate hunger in its communities.
The partnership will not only support underserved communities with valuable food resources, but through Dollar General’s widening footprint, will provide access to healthy food to communities of 20,000 or fewer which traditionally don’t have access.
“Each year, billions of pounds of food go to waste, while millions of Americans face hunger. Feeding America is grateful to Dollar General for ensuring that good, wholesome unsold food gets to people who need it most. We are also grateful for their generous donation of $1 million, which will help provide meals to children and families in rural communities,” said Claire Babineaux-Fontenot, Chief Executive Officer of Feeding America.
Dollar General and Feeding America initially began to test food donations in the summer of 2020 in several Indianapolis, Indiana, and Atlanta, Georgia-area stores. Recenlty, the retailer expanded its donations to its DG Fresh cold storage facilities as well. In 2020, Dollar General donations provided more than 2 million meals to those in need.
In addition to weekly collections, the partnership will provide opportunities for Feeding America and local food banks to collect food items during times of crisis.
As Dollar General continues to drive forward its fresh produce strategy, AndNowUKnow will bring you the latest insights.
MCALLEN, TX - 2021 has brought its own share of industry challenges. As we rally to recover from the impact of the pandemic, every moving piece of the supply chain is crucial. One such moving piece is packaging. In order to gain further insight, I turned to Keith Fox, President of Fox Packaging.
“There were constraints on supplies for raw materials like polyethylene, and this directly impacted production across a range of industries, affecting lead times and causing sharp price increases,” Keith explained. “With surging consumer demand for food packaging for its safety benefits and hygienic perception in midst of COVID-19, manufacturers were driven to pay premium costs to secure inventory. Shortly after, we experienced a series of weather phenomenon; Texas was hit by a hurricane followed by a winter storm that left many homes and businesses without electricity or water. Many companies are still recovering after these consecutive situations and are working to balance and navigate depleted inventories, price increases, rates of late shipments and deliveries, and overall longer lead time for supply orders.”
The main takeaway for Keith is that these disruptions highlighted the importance of resilient, lean supply chain practices. These systems helped companies who mapped industry changes be proactive in their purchases to relieve supply chain pains.
“The review of packaging designs and materials has continued to stay at the forefront of packaging conversations; we’ve continued to review the components of our products to offer greater sustainability benefits and have been proactive in communicating the importance of reviewing your packaging program to ensure that the key features are addressed in an environmentally mindful way,” added Keith. “Our sister company, Fox Solutions, has been working alongside us in review of our Stand-Up Pouch Program as we continue to develop designs that stand out on the shelf and can be seamlessly packed with pouch bagging automation. Part of our culture is nurturing respectful and profession relationships, we understand our customers’ needs and in turn, our customers can reach out to us with packaging concept ideas and our team will realistically approach them; this type of collaboration is key when selecting a packaging partner.”
In order to mitigate risk within the supply chain, Keith emphasized that Fox Packaging stockpiles inventory based on order history and forecasts, as well as by diversifying its supply bases with other qualified suppliers.
“Having various material offerings can also alleviate burden, as demonstrated during the recent demand for polyethylene. With other alternate packaging materials, like Post-Consumer Recycled content, we can drive value to end-use markets while fulfilling the needs of our customers,” he noted. “Reviewing the core strength of your supply chain allows you to identify inefficiencies and eliminate weaknesses within your operations. Just as many of these impacting events were unforeseeable, there is now a renewed sense of urgency toward supply chain management as it is critical to maintaining competitive advantage.”
AndNowUKnow will continue to keep you abreast of the latest updates as they pertain to the fresh produce supply chain, so stay tuned.
DOWNERS GROVE, IL - As both a trade writer and a consumer myself, I can say with confidence that the source and locality products has become of increasing importance to shoppers. With consumers opting more and more for locally grown and produced offerings, Fresh Thyme Market has partnered with RangeMe to go in search of hyperlocal products to fill the shelves of its new concept store in the historic Foundry area of St. Louis, Missouri.
“Community is at the core of everything we do at Fresh Thyme,” said Gerald Melville, Fresh Thyme Market President. “We know our customers appreciate supporting local, so we’re really pleased to partner with RangeMe to offer products made in the St. Louis area to ensure they have the best shopping experience possible.”
In its mission to find local suppliers, Fresh Thyme Market is focused on fresh, healthy, natural, and organic offerings that can be offered to its shoppers at affordable prices.
According to a press release, to seek out new suppliers and foster its relationship with the community, the grocer has partnered with RangeMe, an online product discovery and sourcing platform for retailers and suppliers. Together, the duo has set a goal of 1,000 local products to be included in the concept store.
“We are eager to source products made within the St. Louis region,” added Jane Wilcox, Store Manager of Fresh Thyme Market at the Foundry. “Being able to support our local community, both food producers and consumers, is one of the most exciting parts of the Foundry store’s opening later this year.”
By adding more local suppliers and products to its shelves, Fresh Thyme Market is looking to further its goal of providing real solutions for its shoppers across the communities that the company serves. The retailer strives to present a more thoughtful approach to grocery shopping, helping consumers live healthier lives. The new initiative within the St. Louis area also furthers the commitment to deepening its roots in the community.
Through RangeMe, Fresh Thyme will have access to over 200,000 suppliers and can use the service to streamline its search for brands that fit its criteria and that lie within the local area.
“Product localization is an essential part of continuing to deepen relationships with consumers,” explained Nicky Jackson, CEO and Founder of RangeMe. “Fresh Thyme has been an amazing retail partner for more than three years, and we are thrilled to work with them on this inspired initiative.”
How will fresh produce play into Fresh Thyme’s local supplier expansions? Keep reading AndNowUKnow for answers.
LEAMINGTON, ON - Our industry is once again harnessing innovation to foster growth and strategic new advancements across the supply chain. As fresh produce suppliers as a whole look to navigate a changing landscape, Nature Fresh Farms has teamed up with the University of Windsor in a new project to help achieve necessary advancements in energy-efficient shipping.
“As an innovative company, we are always thinking ‘what is next?’, whether its developments in product varieties, technology, or sustainability. Green transportation is the next big focus,” said Nature Fresh Farms Chief Executive Officer, Peter Quiring. “We were given the opportunity to work closely on this project and offer our operations as a case study to see how we can find feasible alternatives, not only for Nature Fresh Farms or even for companies in agriculture, but for every industry that relies on the transportation of their goods.”
The $160,000 project is meant to determine the impact of long-haul electric vehicles (LHEV) on Ontario’s electric grid, according to a press release, and create an archetypal routing networking by determining the most frequently used travel routes and overlaying the electric grid, which will help determine how it will perform when managing a fleet of electric trucks. These battery-operated trucks will look and perform similarly to diesel trucks with zero emissions.
By drawing power from the electric grid, these transport trucks would be able to sustainably deliver goods while allowing for the transferring of electrons back to the grid at strategic times and locations. The ambitious project is spearheaded by Dr. Rupp Carriveau of the Environmental Energy Institute, and his associate Dr. Hanna Maoh of the Cross Border Institute, with the help of several graduate students. To assist in the different facets of the project, the team is developing various industry-related partnerships such as the one with Nature Fresh Farms.
“We needed a partner to help pilot our project and potentially test, and Nature Fresh Farms came to mind. They are a very progressive company and are calculated risk-takers that push boundaries with new technologies,” said Carriveau.
Nature Fresh Farms will provide information from its operations—including shipping schedules, power use, and utility costs—to help the research team to determine the strengths and weaknesses of converting its fleet to electric vehicles, further exploring the opportunities of electric trucks in the greenhouse industry.
As the first step of the project works toward establishing an electrical grid that will successfully manage a fleet of electric vehicles, phase two includes the potential pilot study of developing and using electric long-haul vehicles for that grid.
As more alliances are formed within the produce industry to spearhead advancements like this one, AndNowUKnow will be here to report.
WASHINGTON, DC - Produce Marketing Association (PMA), Western Growers, and United Fresh Produce Association have joined forces in an effort to continue pushing the industry forward. The three associations recently penned a letter issuing feedback to the USDA National Institute of Food and Agriculture (NIFA) through the NIFA Listens stakeholder input mechanism, stressing the importance of horticulture in the U.S. economy, and encouraging the inclusion of industry and trade association representatives on review panels for funding of future projects.
“The biomedical, space, and other industries benefited from federally funded R&D [research and development] efforts for decades. It is time that the horticulture industry similarly builds on the thoughtful and strategic investment of federal research dollars,” said PMA Chief Science Officer Dr. Max Teplitski. “Fruit, vegetable, and floral industry is critical to the economy and public health. An R&D investment into these 10 areas will give us the tools to continue building the industry of the future.”
According to a press release, the letter applauded NIFA’s efforts to foster the culture of agricultural innovation through the federal Small Business Innovation and Research (SBIR) program and identified the need for USDA NIFA to partner with the Land Grant and other institutions to focus on the challenges facing the industry. The letter also called for thoughtful and sustained federal investments in several crucial sectors of the industry. Some of these areas include:
- Labor and automation
- Biotech tools and resources
- Sustainable packaging and biodegradable stickers
- Technologies to reduce food waste and food loss
- Systems “One Health” approach to food safety
- Climate-smart agriculture and smart energy
- Health benefits of consumption of fresh produce and floral
- Integrated pest management
- Water: safety and use efficiency
- Soil health
To read the letter in full, click here.
AndNowUKnow will continue to bring you the latest news in the produce industry, so keep an eye out for that little green apple.
Produce Marketing Association United Fresh Produce Association Western Growers
MINNEAPOLIS, MN - Increasingly, shoppers have evolved from caring not only about the quality and price of products they purchase, but the values and commitments companies and retailers that are producing and selling goods. To offer consumers a shopping experience they can feel good about, Target recently launched its new Target Forward sustainability strategy that aims to positively impact both people and the planet. As part of the strategy, the retailer has invested more than $1 billion into the health, safety, and well-being of its employees, raising its minimum wage to $15/hour.
“As a company and a member of the global community, it’s imperative for both the health of our business and of our planet that we embrace new ways to move forward,” said Brian Cornell, Chairman and Chief Executive Officer of Target. “We know sustainability is tied to business resiliency and growth, and that our size and scale can drive change that is good for all. Target Forward influences every corner of our business, deepens our collaboration with our partners, and builds on our past efforts to ensure a better future for generations to come.”
Together with its partners, shoppers, and surrounding communities, Target aims to co-create an equitable and regenerative future that is spurred by a new generation of sustainability for the company, according to a press release. The new strategy is based on the retailer’s purpose to help the families and individuals that shop at Target discover the joy of everyday life, while also focusing on restoring and renewing natural systems and ensuring its team, communities, and partners can thrive.
The commitments that Target is making via its Target Forward strategy will work toward three ambitions: design and elevate sustainable brands, innovate to eliminate waste, and accelerate opportunity and equity.
“We want our guests to turn to Target first when they think about sustainability,” said Amanda Nusz, Senior Vice President of Corporate Responsibility, Target, and President of the Target Foundation. “We know that the only way to make that possible is by putting both people and the planet at the center of our efforts, as we co-create with our guests, our partners, and the communities we serve.”
Other signature goals put forth by Target include:
- By 2030, Target aims to be the market leader for creating and curating inclusive, sustainable brands and experiences
- By 2040, Target plans for 100 percent of its owned brand products to be designed for a circular future
- By 2040, Target commits to being a net zero enterprise
- By 2030, Target aims to build a team that equitably reflects the communities it serves, beginning with its commitment to increase Black team member representation across the company by 20 percent by 2023
Although Target Forward is a new strategy, the retailer has already made efforts to promote sustainability and equity across its operations and in its communities. Already, Target has increased its renewable energy footprint, added inclusive and sustainable product assortments to its aisles, made social justice commitments, and offered philanthropic support to underserved communities around the globe.
Some of Target’s ongoing commitments and achievements include:
- Purchasing nearly 50 percent of its electricity from renewable sources, well on its way to 100 percent by 2030
- Investing $1 billion more in the health, safety and wellbeing of its team members, including the move to an industry-leading starting wage of $15 in the U.S.
- Establishing a Racial Equity Action and Change (REACH) committee
As part of its efforts, Target is working alongside its partners Unilever, Business for Social Responsibility, and Prosperity Now to help drive forward its mission.
To read Target's other goals and achievements, click here.
With this new strategy and commitments in play, how will Target strengthen its position in the retail market, and how will these new goals affect its growing grocery sector? AndNowUKnow will keep a pulse on the newswire for the answers.