BURLINGAME, CA - As the demand for online grocery ordering and delivery climbs, so too does Farmstead’s desire for expansion across the booming market. After having recently announced an important profitability milestone, the company has now turned its attention toward growth in new locations, having announced that it will be offering its services in Nashville, Tennessee, starting late in the first quarter of 2021.
“Nashville is a great fit for Farmstead delivery; it’s a thriving, densely populated city that fits our mid-market profile customers who want their favorite brands and fresh groceries, all delivered to their doorstep with no markups,” said Pradeep Elankumaran, Co-Founder and CEO. “Farmstead cracked the code on how to make grocery delivery fast and inexpensive without sacrificing quality or wasting food, and we’re excited to roll out our service to Nashville residents in early 2021.”
The waitlist for the service opened on December 21, and was limited to the first 1,000 people to sign up, according to a press release. Starting in the San Francisco Bay Area, the delivery service is looking to move into at least 14 more markets throughout 2021, with Nashville being its first location.
Using proprietary AI technology and a dark store model, Farmstead has set itself amongst top competition, offering prices comparable or lower than some supermarkets, but with the added twist of free delivery, which has led to extreme growth throughout 2020.
As Farmstead continues to expand, the company will open multiple new dark stores to help ease entry into new locations while also reducing food waste and eliminating food deserts through its inexpensive delivery services. With no stockouts, delivery fees, or markups, Farmstead offers an attractive option for consumers, especially as the pandemic continues.
Where will Farmstead set its sights next? Keep a page open for AndNowUKnow as we continue to bring you the answers.
WENATCHEE, WA - Christmas is around the corner, and this year there’s no room for the Scrooge mentality. As it ramps up the Christmas spirit in its local communities, Stemilt has partnered with Hansen Fruit for the eighth year in a row to provide gifts to over 170 children in foster care and low-income housing.
“2020 has not been the easiest, but I am so proud of the Stemilt and Hansen teams for their generosity and support they have shown the kids in the Wenatchee and Yakima communities,” said Stemilt President West Mathison. “Even though we have been doing this for eight years, I am still honored that our employees have shown such compassion. They stepped up during a time when the community needs it most.”
Every December, Stemilt employees fill the company’s biggest conference room with gifts ranging from toys and bikes to clothes and other essentials.
This year, Stemilt provided gifts to 146 children who are under the care of Washington State’s Department of Youth and Family Services, Fostering Solutions, or Foster First. Hansen Fruit also provided 31 gifts to children under the care of Fostering First in Yakima, the press release stated.
The annual gift gathering is overseen by Stemilt’s Community Investment Committee which works to further Stemilt’s focus on education, wellness, and community by supporting local organizations in Wenatchee Valley and surrounding areas.
After a historically challenging year, Christmas cheer is exactly what kids—and consumers—could use right now, and we at AndNowUKnow are happy to see industry-leading companies providing just that.
WASHINGTON, DC - The Produce Marketing Association (PMA) and National Restaurant Association (NRA) have released statements pertaining to the U.S. House and Senate agreement for a $908 billion COVID-19 stimulus package. The agreement will provide essential financial assistance to the fresh produce and foodservice industries, and is expected to be signed by the President and approved by the full House and Senate today.
“This funding infusion is desperately needed by our industry, which has been devastated by business closures and lost markets,” stated Richard Owen, Legislative and Regulatory Affairs Team Lead for PMA, in a press release. “For some businesses, it’s already too late. But we are now focused on strengthening all sectors of the industry for a recovery period in 2021. This funding serves as an important bridge, and we are grateful to Congress for recognizing the need.”
The package includes key programs that will benefit a number of sectors of the economy, including:
- Funding of $284 billion for continuation of the Paycheck Protection Program (PPP) small business loans that helps employers keep workers who otherwise might go on unemployment
- Stimulus checks of up to $600 for individuals
- $300 a week in enhanced unemployment insurance
- 15 percent increase in Supplemental Nutrition Assistance Program (SNAP) benefits for six months
- $400 million in Emergency Food Assistance Program, which will help food banks meet surging demand
Key provisions specifically related to agriculture include:
- Increased spending for ag producers and processors impacted by the economic fallout of the coronavirus (supplement to CFAP assistance program)
- $1.5 billion for commodity and food purchases
- $100 million for specialty crop block grants
- $75 million for Gus Schumacher Nutrition Incentive Program
- $20 million for Agricultural Research Service
- $7 billion for rural broadband
A statement from the NRA states that the plan includes several items that will benefit restaurants, most importantly the second round of access to the PPP, with unique provisions aimed to assist the restaurant industry, which continues to endure unparalleled job and revenue losses.
“The action taken by Congress today will keep tens of thousands of restaurants from closing in the coming months,” said Tom Bené, President and CEO of the NRA. “A second round of PPP, combined with unique enhancements for the restaurant sector, will provide critical access to capital. Restaurant operators and their employees are dedicated to serving their communities, and today’s bipartisan agreement will give them the opportunity to do that through the holidays. However, the long-term economic challenges facing independent, franchise, and chain restaurants will not end with the new year, and we will continue to press federal and state leaders for the support that will put us on the road to recovery.”
Sean Kennedy, Executive Vice President of Public Affairs for the NRA, also commented on the importance of this agreement.
“Restaurants have waited months for a comprehensive relief bill that reflects the magnitude of this crisis,” said Kennedy. “Today’s bipartisan action is a ‘down payment’ that recognizes the unique damage the pandemic is inflicting on our industry. Congress heard from us and hundreds of thousands of our restaurant members about basic steps to improve PPP for our industry—and they listened. We appreciate Senate and House Leadership, key committee chairs and ranking members, and the group of moderates, each of whom played a critical role in this process. There is much more to be accomplished, and we will continue to press in 2021 at the federal, state, and local level on behalf of the industry, our employees, and our customers.”
As more news comes to light surrounding this monumental agreement, the PMA and NRA plan to make the most relevant industry updates readily available. Keep an eye out for further reports from AndNowUKnow.
Produce Marketing Association National Restaurant Association
NEW ZEALAND - T&G Global has smoking hot news to deliver, as its Envy™ apple brand is on track toward generating one billion dollars of sales revenue. The company has also commercially released a new apple from its Hot Climate Program, which is already receiving high praise.
“In the premium apple category there are many new and established varieties, however Envy continues to be a standout performer,” commented CEO Gareth Edgecombe. “This year, it delivered returns on average of (NZD) $45 (US $31) per TCE (tray carton equivalents) to our growers—that’s very close to what we targeted before COVID-19, which is a great return when we know many varieties have had low returns this year. The strength of the brand and its orcharding qualities means growers have the potential to make over 15 percent return on their investment, once their orchard is at full maturity.”
In 2020, 1.9 million TCEs of New Zealand-grown Envy apples were sold, a 23 percent increase on the previous year across the USA, China, and Asia. According to a press release, this is part of a wider Envy sales program of five million TCEs per annum, grown in both hemispheres. With this strong momentum, T&G predicts that by 2025 Envy will be a billion-dollar brand.
“This season’s sales reinforce the global demand we’re seeing for the brand. As a result of Envy selling out early in the season, our sales team had to scramble to move product around to keep our retail programs going for as long as possible," expressed Edgecombe. "This positioned us well for a strong start to our northern hemisphere growing season, with these apples beginning to arrive in-market last month. Globally, there’s incredible appetite for Envy. Independent research has forecast that we need at least another 25 million TCEs by 2030 to meet potential consumer demand, especially in China, Vietnam, Thailand, and the USA. Recent planting will soon produce another 10 million TCEs per annum, and we’re investing in market development programs and further supply growth to make the most of the brand’s significant long-term potential."
Edgecombe added that, “Envy is one of the real success stories in New Zealand’s horticultural sector—it harnesses incredible Kiwi IP and delivers strong returns to our growers, communities and shareholders. In the 12 years since we first released Envy to Kiwi growers, it’s now grown under license in 13 countries, sold to consumers in over 60 countries, and in 2019 was voted the number one apple for taste, appearance, and texture by consumers in the USA.”
The apple being released from the Hot Climate Program is known as ‘HOT84A1’ and features an attractive, rich red color with excellent texture and a sweet taste. Growers have also discovered that the apple performs equally as well in temperate climates as it does in hot climates.
“This is an exciting find and proves that this apple is well suited to many different geographies,” said Gary Wellwood, Global Variety Development Manager. “It opens up further opportunities for growers in both the Northern and Southern hemispheres and provides an opportunity for year-round supply.”
Wellwood continued to explain that the variety blooms in mid-April with harvest timing in late September to early October. This places ‘HOT84A1’ in market approximately two weeks earlier than Fuji.
“Our European representative is organizing tasting events in Spain, Italy, France, and other locations. If we can’t get the people to the fruit, we will organize to get the fruit to the people!” Wellwood remarked.
Jeremy Linsell, Worldwide Fruit UK, Technical Development Manager, added that ‘HOT84A1’ has performed well in testing in the United Kingdom. In its second year as strategic commercialization partner for the Hot Climate Program, T&G Global has made good progress with the first variety under license.
‘HOT84A1’ is being planted in commercial volumes in Catalonia, Spain. Fruit Futur, partners in the Hot Climate Program, have committed to a planting program over the next six years in an effort to provide consumers with fruit of great color and exceptional flavor and texture.
Interest in the variety has been strong. ‘HOT84A1’ trees are being circulated globally, and in 2021 T&G Global, together with its material services provider, Dalival, will begin planting further test blocks throughout Europe. Planting of test trees for evaluation in Australia, the USA and South Africa are expected within a few years.
As we continue to track the latest in apple updates, stick with AndNowUKnow.
JACKSONVILLE, FL - If your ears perk up at the news of retail acquisitions, then you’re in luck, as two Piggly Wiggly® independent store Owners recently entered an agreement with Southeastern Grocers for the acquisition of two BI-LO stores.
With the support of C&S Wholesale Grocers, the two Piggly Wiggly store Owners acquired one BI-LO location in Georgia and another in South Carolina.
“Our independent Owners are excited to grow their existing store footprint and expand the Piggly Wiggly brand in the Southeast,” said John Owens, Vice President and Southeast General Manager for C&S Wholesale Grocers. “We look forward to serving our new customers with the high-quality products and exceptional service that Piggly Wiggly stores are known for.”
Back in June, the company announced a strategic plan to divest the BI-LO banner, kicking off a series of transactions for Southeastern Grocers.
The BI-LO store in Georgia, located at 1042 US-80 West, Pooler, Georgia, is being purchased by Missy and Ashley Thompson, who own four Piggly Wiggly stores in Southeast Georgia. The other location, located at 760 US-378, Lexington, South Carolina, is being purchased by a new Piggly Wiggly Owner Charles Starbuck.
Both transactions are expected to close in mid-January, and the acquired stores will be rebranded under the Piggly Wiggly name. The transactions are subject to the satisfaction of customary closing conditions, the release continues.
With the addition of the two new stores, C&S Wholesale Grocers will now service 55 Piggly Wiggly locations within South Carolina and Southeast Georgia.
Whether it’s selling or purchasing, retailers are always coming up with strategic new plans to grow in new or existing markets, and we here at AndNowUKnow are excited to see how this will spark continuous growth for the grocers involved.
CINCINNATI, OH - If there ever was a time to test the strength of a company’s culture, now would be it. After all, culture is everything—this is one of the many strong sentiments that The Castellini Group of Companies shares with me this month. As 2020 tested many industries and toiled against even the strongest of strategic ramparts, many in fresh produce rallied and the tide rose, for all of our industry boats.
“The COVID-19 crisis had us all reprioritizing in an effort to stay afloat at first. Then we learned that we could make some essential changes that would indefinitely elevate and impact the company and its members for the better. We never could have identified these areas without a crisis like this,” Brian Kocher, President and CEO, shares with me. “We have renewed our efforts to create a values-driven culture internally, in the way we conduct ourselves with our employees, customers, and vendors, and how we support our communities, and especially those in need.”
In Brian’s words, it is a duty that Castellini has—to be stewards of its community—and the company is in a unique position in the produce industry to execute this vision, having stepped up its efforts during these challenging times.
“We are supporting many charities and non-profits serving the food insecure population in our region,” Brian tells me. “Just one example is a new partnership with Last Mile Food Rescue. We began the relationship in late summer and for the past seven weeks, we have been running the pilot program for the Greater Cincinnati/Northern Kentucky market. In those weeks alone, we donated roughly 19,000 pounds of produce, and that produce was delivered to 10 local non-profits by Last Mile Food Rescue.”
While the company has enlisted its charitable and industrious arms to help those communities in need today, the current state of the industry has forced the team to think about the future more than ever, along with the health and welfare of its employees.
“Now is the time to review how we have adapted to the current situation–and which of these adaptations we want to build upon into the future,” Brian tells me. “The coronavirus may have or may not have changed the way we live our lives forever, but it has forced us to rethink the way we do business and our strategies. The landscape will be very competitive when we emerge from this pandemic, and we feel we have effective long-term strategies in place that will be fundamental to our success as a supply chain services provider.”
Over the past 10-plus months, the company has pivoted and shifted its footing, creating teams and blueprints to address all concerns and challenges from staffing and social distancing to recruiting and partnering—all in an effort to keep its family of team members healthy and its customers thriving. Check out all the deets on these recent moves here.
“I am proud of how we pushed through the process and how we continued to focus on being the best partner for our existing customers,” Brian shared with us earlier this month. “At the same time, we focused on our strengths and expertise as a full-service supply chain partner and were able to start new relationships in the 4 PL category, where we see our biggest potential for growth in the coming years.”
With all these moving parts, you can either hold steady and let them shift around you, or you can be the movement that changes the pieces you hold.
HOUSTON, TX - This has been a year unlike any other. As the industry has weathered through obstacles and overcome challenges, restaurant operators have had a welcome partner in Sysco. Continuously rolling out innovations to support foodservice members, Sysco and its Foodie Solutions platform have launched a collection of Toolkits this year that provide innovative ideas to generate new revenue streams and operate safely during the pandemic.
To learn more about how these kits are delivering solutions, I chatted with Maureen Quirk, Vice President of Marketing.
“Sysco is the only company in our industry to offer this comprehensive suite of innovative resources for operators,” Maureen explained to me. “The toolkits are designed to meet each operator where they are, providing an end-to-end resource of the products, services, and expertise operators can pull off the shelf and start using now.”
Additionally, Sysco recently announced the elimination of minimum delivery size requirements for customers’ regularly scheduled delivery days as part of the company’s Restaurants Rising campaign. This change went into effect in November for all Sysco U.S. Broadline, FreshPoint, Buckhead Meat, and Newport Meat customers.
Sysco’s Foodie Solutions currently features 13 free curated toolkits focused on helping all restaurant operators safely implement vital strategies to support their business. The latest additions, the Holiday Toolkit and Cold Weather Solutions Toolkit, add several new elements to the platform’s repertoire.
The Holiday Toolkit provides innovative tools to help restaurant operators generate revenue this holiday season. Ideas for operators in this toolkit include offering their customers cocktail kits, pies to go, unique takeout offerings, and different packaging options for takeout orders. The Cold Weather Solutions Toolkit provides ideas on how customers can position their outdoor space as a new winter wonderland experience. For example, Maureen tells me, geodesic domes are an easy opportunity to provide a unique sheltered experience for guests choosing to dine on a patio.
“Sysco’s online toolkits helps operators understand the services and resources that Sysco has to offer and helps them decide what applies to their business and what it takes for them to thrive in today’s new world. Restaurant operators need to examine their business model and decide what is working for them and what is not,” Maureen continued. “If they have not done so already, Sysco can help develop takeout options and a robust digital experience for their customers. These toolkits deliver solutions that operators can start implementing today.”
The importance of these toolkits cannot be overstated, as Maureen remarked that Sysco customers utilizing these resources are generally outperforming the broader food-away-from-home industry.
“Restaurant operators are an incredibly resilient bunch, and we’ve seen so many inspiring stories of their innovation and grit,” Maureen stated. “In fact, our toolkits are curated to represent the best ideas we’ve seen some of our customers implement. We want to share these solutions to help other restaurateurs succeed.”
The elimination of order minimums and value-added services through the Restaurants Rising campaign also are available to help customers succeed. Through free restaurant marketing tools, Maureen said that Sysco’s team can produce marketing solutions such as banners and posters that can be printed locally. Additionally, Sysco’s strategic partners offer exclusive discounts for Sysco customers for important services restaurant operators need, such as delivery, mobile ordering and menu services.
“We believe our foodservice expertise combined with value-added resources have helped support restaurant operators through the pandemic. This has undoubtedly been a tough year for restaurants, but there is a path to survive and even thrive into the future,” she stated.
As we continue to follow the foodservice sector and the partners making it possible to succeed, keep reading us here at AndNowUKnow.
SAN BERNARDINO, CA - In a year like 2020 where time has seemingly been warped, 40 years seems inconceivable, but not for Stater Bros. Markets. The retailer recently celebrated the 40th anniversary of its Big Bear location, in addition to completing a remodel of the store.
“Big Bear is a tight-knit community, so when we are serving our customers, we are serving our friends, family, and neighbors. Stater Bros. is truly a part of this community, and I’m thrilled that I have been able to be here for all 40 years,” said Rick Jaeger, Store Manager.
Stater Bros. finalized its supermarket revamp with exciting new features that include an enhanced garden-fresh produce department featuring expanded organic selections and a fresh-cut fruit section. In addition, the market has a newly renovated exterior façade, as well as environmentally friendly solar panels and energy-efficient LED lighting.
In honor of the unique celebration, according to a press release, store employees handed out flowers to customers and Stater Bros. Charities gifted a $4,000 donation to The Lighthouse Project Inc. to support Dolly Parton’s Imagination Library, a program that gifts books to children.
Congratulations are in order to Stater Bros. for this milestone and for its completion of this exciting remodel.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has determined that Frank Cione is not responsibly connected to Lurie Brothers, which is located in Chicago, Illinois. This is an update from a previous citation.
Direct from the USDA Agricultural Marketing Service:
Lurie Brothers LLC violated the Perishable Agricultural Commodities Act (PACA) by failing to pay a reparation award in the amount of $26,163 in December 2019. As a result, USDA imposed sanctions on the business, including requiring that all principals may not be employed by or affiliated with any PACA licensee without USDA approval.
USDA made an initial determination that Frank Cione was responsibly connected to Lurie Brothers LLC and subject to sanction. Frank Cione contested this initial determination and USDA has now determined that Frank Cione was not responsibly connected to Lurie Brothers LLC at the time of the violation.
As a result, Frank Cione may be employed by or affiliated with any PACA licensee.
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 3,625 PACA claims involving more than $104 million. PACA staff also assisted more than 7,600 callers with issues valued at approximately $166 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.
For more information, and to read the press release in its entirety, click here.
EUGENE, OR - Shaking up its leadership team, Fall Creek Farm & Nursery recently announced that a new Board member is on the scene. The blueberry breeder has appointed Tom Blaser to its Professional Board of Directors, bringing the Fall Creek Board to nine individuals. Blaser brings with him vast experience in strategic, operational, and financial management roles, having most recently served as Senior Vice President and Chief Financial Officer of W.R. Grace, a global specialty chemical company.
“I’m honored to join Fall Creek’s accomplished Board and leadership team and to support them in continuing the company’s tremendous success and increasing global profile,” said Blaser. “I was drawn to the opportunity because of the organization’s entrepreneurial spirit and culture, and I look forward to helping them continue to improve current business performance and achieve their goals.”
Prior to joining the Board of Directors and his role at W.R. Grace, Blaser served as President of the North American Business Unit of Arysta LifeScience Corporation, according to a press release. The company is a $1.6 billion private equity-backed, global agricultural chemical and life science business.
Over the past several years, Fall Creek has expanded its Profesisonal Board of Directors from entirely family shareholders to include external industry leaders with a wide range of expertise in order to grow the company’s business perspective. In his new role, Blaser will join Mark Frandsen, Elin Miller, Kevin Murphy, and Roland Wolfram, other non-family, non-Executive Directors to help continue to expand Fall Creek’s business.
“As a family company, we know it’s crucial to have a strong board and appreciate the skills and contributions of outside board members to support us in doing the best job we can—and Tom is an example of someone who’ll help us continue to elevate operations,” said Dave Brazelton, Co-Founder and Executive Chair of the Board. “He brings world-class financial acumen and experience in strategy and business leadership. He will be a great addition as we strive to better serve our customers, our industry, and our communities.”
We would like to congratulate Tom Blaser on his new role and look forward to seeing how his experience will benefit Fall Creek.