ENCINO, CA & TOKYO, JAPAN - A breeze of change is blowing through the retail sector, and with it comes news that popular California-based grocer Gelson’s Markets is being acquired. Pan Pacific International Holdings (PPIH), the operator of Japanese discount store chain Don Quijote, has revealed it is acquiring all shares of GRCY Holdings, the company that operates Gelson’s. The recent move comes as PPIH is looking to expand its operational footprint throughout the U.S.
Prior PPIH initiatives in North America have included effective use of mergers and acquisitions to build foundations and grow operations. For example, the company created its first overseas base for opening stores through the establishment of THE DAI’EI (USA), which is operating in Hawaii currently as Don Quijote (USA). In 2006, it acquired all shares in Oriental Seafoods; PPIH then acquired all shares in MARUKAI CORPORATION, which operates in Hawaii and California.
“We have set our footprint in the state of California when we acquired Marukai Corporation…and we look forward to expanding our presence in California,” said Naoki Yoshida, President and CEO of PPIH in a statement to Daily News.
According to the release, this transaction is slated to expand PPIH’s overseas sales to approximately ¥200 billion (approximately $1.89 billion USD). GRCY operates 27 Gelson’s stores, which generates net sales of $872 million (fiscal year ended December 31, 2020). The release did not disclose the amount of the acquisition.
As GRCY’s business area and the surrounding areas continue to experience ongoing population growth, a large portion of which is in communities with consumers seeking high-quality products, PPIH sees potential for continuous growth to be achieved by opening new stores and attracting new customers at existing stores, according to the statement.
Looking ahead, PPIH plans to accelerate growth through new store openings and through mergers and acquisitions in Asia and in other areas of overseas operations in order to drive medium- to long-term improvements in the company’s enterprise value.
How will this recent acquisition advance PPIH’s growth strategy in the U.S. retail market? Keep a tab open for AndNowUKnow as we continue to bring you the answers.
Gelson's MarketsPan Pacific International Holdings Corporation
WASHINGTON, DC - Where would we be without data and insights from our industry advocates? United Fresh Produce Association recently debuted its Winter 2021 issue of Fresh Insights for Foodservice. Sponsored by Produce Alliance, this quarterly report highlights on-trend foodservice applications for fresh produce in restaurants, at retail, in meal kits, and more. This issue focuses on health and immunity and highlights the multiple benefits of fresh produce for consumers looking to mitigate the effects of COVID-19 as well as seasonal colds and flus.
“This quarter’s report spotlights a variety of antioxidant-rich fresh fruits and vegetables, as well as creative ways that consumers can enjoy vitamin-packed produce,” said Andrew Marshall, Director of Foodservice and Foundation Partnerships, United Fresh. “As more consumers look to fortify their immune systems, it’s good to see increased interest in incorporating more fruit and vegetables for optimum health."
According to a press release, the report highlights In Season winter trends, lemons and versatile onions, as well as globally inspired dumplings that can serve as a vehicle for fresh produce. The “On the Horizon” section covers the trends likely to impact foodservice this summer, with deep dives into blackberries, bell peppers, and “center-of-plate” produce meals, such as carrot hot dogs, jackfruit tacos, and cauliflower steak.
The “Chain Report” explores the latest national account introductions, while the “Kids’ Table” section looks at how different types of oranges are being featured on kids' menus.
The “View from Above” section features operators who are leveraging immune-boosting menu concepts that incorporate fresh produce to increase vitamin, mineral, and antioxidant content. This portion of the report features an interview with Rachel Layton, Managing Partner at I Love Juice Bar, about how this fast-casual concept appeals to immunity-conscious consumers with their variety of healthy beverages.
“When it comes to immune-boosting ingredients, you can’t do much better than fresh produce,” said Katie O’Connor, Marketing Manager for Produce Alliance. “Produce is so versatile and can be incorporated in a multitude of menu items, providing plenty of opportunities for chefs and foodservice operators to promote the nutritious qualities of their dishes.”
To further explore the Winter issue’s content, the United Fresh Retail-Foodservice Board hosted an interactive webinar on Tuesday, February 23, at 2:00 p.m. EST. Visit www.unitedfresh.org for more information.
This issue of Fresh Insights for Foodservice is available here.
Keep reading AndNowUKnow for the latest in industry updates.
WENTACHEE, WA - What pairs well with increased produce sales? Pears, of course! I have to admit, even I found that opening line to be cheesy, but what isn’t a joke is Stemilt’s high quality, flavorful pear varieties that will have consumers loading up their baskets this spring. Ever a marketing whiz, Stemilt is offering key ways for retailers to effectively promote the shopper-favorite fruit and optimize their merchandising abilities.
“Stemilt’s mission is to delight consumers, and we do so by providing pears with flavor,” explained Brianna Shales, Marketing Director. “All of our pears are grown with flavor as our motivator and we take the necessary steps to achieve that along with optimal quality and freshness. Merchandising our ripened Rushing Rivers® d’Anjou pears delights consumers and leads to increased category numbers. It doesn’t get better than that.”
Recent Nielsen retail scan data and Stemilt’s Fruit Tracker™ analysis found that d’Anjou pears made up over one-third of category dollars and volume for 2020, according to a press release. As Bartlett pears are moving out of season and d’Anjou and red d’Anjou are preparing to take their spot, retailers should prepare to capitalize on the change and consider stocking up on both bulk and bags for promotions and merchandising.
“It’s important to strike a balance between bulk and bag promotions for the pear category, but there is a place for both options,” explained Shales. “Last year, d’Anjou bags made up 24 percent of volume, and the success of packaged produce during the COVID-19 pandemic makes offering grab-and-go packs like Lil Snappers® 3 lb kid-size fruit pouch bags or 5 lb Rushing Rivers pears pouch bags a great solution.”
As consumers continue to opt for bagged items for a contactless solution to their produce cravings, Stemilt’s bags offer a good retail price and can be set up for in-store promotions with ease. Additionally, for those shoppers who prefer to make their grocery purchases online, bags provide a convenient way to transport the fruit and maintain limited contact.
“Bags are a great item for online home delivery and curbside pickup; however, bulk is the mainstay of feature and liner ads, as well as in-store impulse purchases. Both options play as key drivers when raising category numbers,” Shales continued.
In addition to the many packaging options that Stemilt offers, its conventional Rushing Rivers d’Anjou and red d’Anjou pears move through Stemilt’s RipeRite® ready-to-eat pear program to ensure that only the most high-quality fruit makes it to the produce aisle.
“Our d’Anjou pears are high quality, full of flavor, and a staple item for your upcoming advertising mix during for spring and early summer months,” said Shales. “The Northwest is wrapping up a very successful Bartlett pear season, and that opens the door for increased promotion on the springtime favorite, d’Anjou pears.”
Retailers can also plan to start promoting Stemilt’s Artisan Organics™ d’Anjou pears through both bulk and bag options between now and mid-April. As organics continue to increase in popularity amongst consumers, this will be another way to meet the changing shopper demands.
“While organic pears don’t make up a large portion of the category, Stemilt is the long-time leader in difficult-to-grow organic pears and does so with our flavor focus,” explained Shales. “It’s a great in-and-out promotion strategy for this time of year, or a liner to your conventional bulk pear promos.”
There you have it, folks! If pears are what you’re searching for to optimize produce aisles sales this spring, look no further than Stemilt and its prime merchandising opportunities. I know I’ll be scoping out the shelves for these delicious pears.
As more marketing opportunities arise across the industry, AndNowUKnow will continue to be the place to get key tips.
CORAL GABLES, FL - Optimization and transformation is the name of the game for Fresh Del Monte Produce. The company recently announced its financial results for the fourth quarter and fiscal year 2020, and we at ANUK were enthused by the report. Fresh Del Monte completed 40 percent of its $100 million asset sale optimization program as it continues making progress on its transformation initiatives.
“In 2020, we benefited from actions taken as part of our $100 million asset sale optimization program, as well as making progress on our five-year strategic initiatives to become a value-added and more diversified company,” said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer. “The emphasis on selling non-strategic, underutilized assets and strengthening our core businesses led to improved cash flow and reduced debt. These efforts, along with our versatile, vertically integrated platform, helped us mitigate the effects of disruptions, including weather and the COVID-19 pandemic. We are also proud of the progress we made in the following areas in the midst of a global pandemic: we placed in service four of our six new container vessels that we expect will increase our efficiency and reduce our carbon footprint; we opened a new state-of-the-art Mann Packing facility in California, merging four facilities into one; and opened a new state-of-the-art distribution and fresh-cut facility in Yokohama, Japan. Also, we benefited from our new avocado packing facility that opened in December 2019.”
In addition to these exciting initiatives, Fresh Del Monte plans to reduce its long-term debt by $45 million as compared to the end of 2019. Though the COVID-19 pandemic took a toll on the entire industry, the company still managed to pursue growth during fiscal year 2020.
Some of the report’s financial details are as follows:
- Net sales for the full year 2020 were $4,202.3 million, compared with $4,489.0 million in 2019
- Gross profit for the full year 2020 was $250.9 million, compared with gross profit of $306.4 million in 2019
- Operating income for the full year 2020 was $76.5 million, compared with an operating income of $114.1 million in 2019
- Net income for the full year 2020 was $49.2 million, compared with a net income of $66.5 million in 2019
“We are optimistic that, with an improved balance sheet and our strategic focus on value-added products to respond to the shift in delivery channels driven by the trend towards a ‘stay-at-home economy,’ we will continue to see gains in our performance during 2021. Our goal, as always, is to deliver shareholder value over the long-term,” Abu-Ghazaleh added.
For more on how Fresh Del Monte is optimizing and transforming its business, keep checking in with us at AndNowUKnow.
WASHINGTON, DC - 2020 was a year marked by constant changes and shifts, but one thing that remained a consumer favorite was fresh produce. United Fresh confirmed this upward trend as the association has published its FreshFacts® on Retail Q4 2020/Year in Review 2020 report, sponsored by Mucci Farms.
“Q4 was largely a continuation of pandemic trends we have seen throughout the year, including consistent growth for produce at retail,” said Miriam Wolk, Vice President of Member Services. “The resilience of fresh produce throughout 2020 was a testament to the commitment of growers, manufacturers, distributors, and retailers to ensuring America’s healthy eating needs continued to be met.”
The recently unveiled report shows a steady growth of both fruits and vegetables at retail in Q4 of 2020, according to a press release. Additionally, the FreshFacts issue also found that fresh perimeter categories have continued in their role as growth engines across the grocery space.
In addition to sales, the report also features deep dives on categories such as cucumbers, mangos, and mushrooms, offering a year-to-year comparison of the last three years’ Q2 results that the association hopes will help in planning for a successful Q2 for 2021.
Some of the Q4 highlights from the FreshFacts report include:
- Both fruits and vegetables continued to grow, as sales surged across categories driven by consumers making more trips and spending more during those trips
- Value-added produce sales continued to gain momentum after rebounding from declines in the past. While vegetables are growing at a higher pace than fruit, the latter has returned to growth after consecutive quarters of sales decline
- Total fruit generated revenues of $7.3 billion in the latest quarter, representing 7.7 percent growth versus a year ago
- Vegetable dollar sales grew 14.1 percent in the latest quarter, reaching $8.8 billion, backed by strong volume growth of 9.2 percent
To showcase the other results of the issue, United Fresh Retail-Foodservice Board and Nielsen Fresh will host a webinar that will highlight the statistics included in the report. The webinar will feature analysis from Mike Galaburda, the Client Director for Nielsen, and will offer an opportunity for participants to engage in not only a questions segment, but an audience discussion with Ajit Saxena from Mucci Farms.
The webinar will be held Thursday, February 25, at 2:00 p.m. EST, and will be moderated by Jeff Cady, Director of Produce and Floral at Tops Friendly Markets. To register for the webinar, click here.
The FreshFacts on Retail report can be downloaded for free by all United Fresh members, and $50 for non-members, here.
As consumer habits continue to adjust, what role will fresh produce play? Stick with AndNowUKnow as we bring you the latest.
DAVIS, CA - As technology and innovation continue to deepen their roots within the retail sphere, solutions company Engage3 is expanding its footprint in the grocery sector by forming a new partnership with Midwest-based grocer, Heinen’s. The company will use its comprehensive software and Competitive Intelligence Management (CIM) solution to help the retailer expand its omni-channel visibility as it continues to push for growth.
“In our search for a SaaS competitive pricing partner, Engage3 was the clear frontrunner. They had all of the capabilities that we were looking for to execute our pricing strategy, and we believe their private label matching capabilities will be superior to our previous partner’s,” said Kim Heinen, Packaged Goods Manager for Heinen’s.
Engage3’s CIM, an AI-assisted, attribute-based, and data science-driven solution, will provide Heinen’s with the ability to achieve the most comprehensive pricing visibility, while also using the company’s ML-powered product linking capabilities to create a contextualized view of the retailer’s competitors’ equivalent items on the local market level.
“Heinen’s upscale offerings of the highest-quality foods and the greatest assortment has earned them a great following of loyal customers,” said Edris Bemanian, CEO of Engage3. “We are thrilled to partner with them in enhancing their competitive pricing visibility and powering their product linking analytics to set pricing that resonates with their shoppers.”
CIM is currently being used at six of the of the largest retailers in the U.S and provides each of its users with a comprehensive view of competitor pricing activity.
Through the use of in-store data collection, online web scrapes, and ad-hoc data collection within the Missions App, Engage3 is able to offer retailers store-level pricing as well as assortment strategies across channels, markets, and items for all competing grocers.
How will this new partnership with Engage3 evolve Heinen’s growth strategy? Keep a tab up for AndNowUKnow as we bring you the answers.
CORK, IRELAND - In Ireland, roughly €12.04 million ($14.6 million) worth of cocaine was discovered in a refrigerated container of fruit. Upon arrival at Ringaskiddy Port, officers from the Garda’s Drugs and Organized Crime Bureau and Revenue’s Customs Office found 172 kilograms (372 pounds) of the illegal substance.
According to a report from The Irish Times, this drug bust is one of the biggest drug seizures the Republic of Ireland has seen in recent years. An uptick in drug seizures has occurred within the past 12 months, as the country has dealt with multimillion-euro seizures.
Assisted by sniffer dogs and an X-ray scanner, officials uncovered the drugs after searching through several of the 40 containers aboard the ship. It is believed that the ship departed the port of Moin on Costa Rica’s Caribbean coast, although customs officers are still inquiring into the origins of the container which held the drugs.
Police are currently tight-lipped on this investigation, having made no comment in regards to current arrests.
Keep reading us here at AndNowUKnow as we continue to watch these investigations unfold.
LOS ANGELES, CA - The winds of change are blowing across the fresh produce industry, and with them comes a new partnership and the announcement of a new CEO for Pacific Trellis Fruit. The company has announced that it has joined with Arable Capital Partners and has concurrently named Josh Leichter as Chief Executive Officer.
“Pacific Trellis Fruit has become a leading company in the industry due to the solid team we have in place, in addition to strong grower partnerships, customer relationships, and the Dulcinea Brand,” said Leichter. “I look forward to helping the company deliver continued success and leading the people who have helped make Pacific Trellis Fruit what it is today.”
Leichter has over 25 years of experience in the produce industry, having most recently held the position of General Manager at Pacific Trellis. In his new role, he will be responsible for establishing the company’s short- and long-term growth strategy and execution.
Pacific Trellis' new partnership with Arable Capital Partners—an investment firm—will enable the company to continue driving forward expansion plans while embracing new growth, a press release explained.
“Being one of North America’s top year-round importers, growers, and marketers of premium fresh fruit made Pacific Trellis Fruit an attractive company for us to partner with,” said Derek Yurosek, Managing Director of Arable Capital Partners. “Pacific Trellis Fruit is poised to do big things, and we plan on leveraging our tenure and experience in the industry to help them deliver.”
David Sullivan, Co-Founder of Pacific Trellis Fruit and active Owner in the business, also commented on these recent changes.
“It’s an exciting time at Pacific Trellis Fruit as we welcome Arable as our new partner,” said Sullivan. “Not only do they bring a wealth of experience, but they will also help open the door to new possibilities in the future.”
Sullivan will continue to act as shareholder and will be involved in the strategic areas of business development.
Congratulations to Josh Leichter on his new role and to Pacific Trellis on its new partnership!
GRAND RAPIDS, MI - Traditional supermarket formats continue to evolve, giving life to smaller formats that evoke feelings of personalization and intimacy. Retailers are constantly chasing after what consumers want—and Meijer is no stranger to this dance. After announcing plans for its fourth small-format store, the retailer also upped its small-format strategy by playing into the local aspect that shoppers have come to love—and expect.
“Our small format stores have always had the autonomy to stock the local products that fit their communities’ needs,” said Justin Stricklen, Director of Market Format Stores. “This is the first time we’ve put out a call for those vendors to raise their hands and showcase their offerings. We believe there is a lot of potential out there, and we’re excited to begin building those lasting partnerships to benefit our customers.”
The new store, which is set to open later this year and will stand at 42,000 square feet, is searching for items that Meijer calls “hyperlocal” in a press release. Store Manager Marcus Reliford has a goal of stocking 2,000 local products.
“We want to help local businesses succeed,” said Reliford, a Detroit native who joined Meijer in September 2020 to lead its first Detroit small-format store, which will be located in the city’s East Jefferson Corridor. “We want to showcase all Detroit has to offer and believe Rivertown Market is the place to do it.”
Similar to the retailer’s three other small format stores—Bridge Street Market in Grand Rapids, Woodward Corner Market in Royal Oak, and Capital City Market in Lansing—Rivertown Market will focus on offering customers a unique shopping experience and feature a vast assortment of fresh food and artisan groceries.
This store will continue to leverage Meijer’s ongoing partnership with RangeMe, an ECRM company and online product sourcing platform, to manage all Rivertown Market’s product submissions by qualifying and connecting suppliers with the appropriate buyers.
Meijer also made headlines over the weekend when President Biden sparked a brief Twitter war over the pronunciation of the retailer's name. According to The Hill, pluralizing the name is technically a mispronunciation, but for those in Michigan, it’s a common usage that speaks of solidarity.
Whichever way your pronunciation ruling comes down, you can’t deny that Meijer is making moves in the retail sector.
UNITED KINGDOM - A recent produce shipment that arrived in the United Kingdom was carrying more than just fresh bananas. Officials intercepted the shipment in Portsmouth, where they discovered over $259 million (£184 million) worth of cocaine hidden inside.
According to BBC, the shipment of bananas originated in Colombia. It was intercepted by the National Crime Agency (NCA), which subsequently removed the drugs, shipped them to London, and arrested the ten people connected to the shipment. This is reportedly one of the largest drug seizures to take place in the U.K.
Detectives, the NCA, and the Met Police worked together after receiving a tipoff in regards to the shipment. The team conducted a week-long investigation, tracking the 41-pallet shipment all the way to Portsmouth. Ultimately, three people were charged for the crime.
For more of the latest happenings in fresh produce, be sure to follow along with us at ANUK.