THE NETHERLANDS - A new strategy is leading growth for Ahold Delhaize as it enters 2021. The company announced today that it has authorized a new €1 billion ($1.17 billion) share buyback program. This is expected to build on the strength the company continues to see in its business model.
Additionally, the company has reported strong quarter three results with net sales at €17.8 billion (around $20.8 billion USD), which is up 6.8 percent or 10.1 percent at constant exchange rates. Ahold also announced initiatives to solidify its position in the local omnichannel market in 2021 and beyond.
"We continue to adapt to changes we are seeing in consumer shopping patterns and behavior,” said Frans Muller, President and CEO. “Over the coming years, we will invest in our business to solidify our position as an industry-leading local omnichannel retailer and increase our share of the consumer wallet. We will find ways to improve our online productivity and are on track to achieve the €1.9 billion ($2.23 billion) cumulative cost savings target by 2021. To benefit all of our stakeholders, we aim to strike the appropriate balance between investing in the health and safety of associates and customers, supporting our local communities, prioritizing environmental, social, and governance (ESG) initiatives, and returning capital to shareholders.”
Maintaining a balanced approach between funding growth in key channels and returning excess liquidity to shareholders is part of Ahold Delhaize’s financial framework and supports its Leading Together strategy. As COVID-19 continues to pose challenges, Ahold aims to strike an appropriate balance between important investments in additional safety measures, enhanced associate pay and benefits, and significant charitable donations, which has thus far resulted in approximately €470 million ($555.44 million) in COVID-19-related costs year to date.
According to a press release, the purpose of the share buyback program is to reduce the capital of Ahold Delhaize, by cancelling all or part of the common shares acquired through the program. The program will be executed within the limits of relevant laws and regulations, the existing authority granted at Ahold Delhaize’s 2020 annual general meeting of shareholders on April 8, 2020, and the authority (if granted) by the 2021 annual general meeting on April 14, 2021.
Ahold Delhaize will provide regular updates on the progress of the program by means of press releases. To read the buyback report in full, please click here. And to read the financial details of the quarter three release, please click here.
Keep coming back to AndNowUKnow as we report on the latest across the retail sector.
GERMANY - With the rise in at-home cooking, meal-kit delivery is also seeing a boost in demand. German meal kit delivery firm HelloFresh is one such company facing the increase in interest and has announced it will be expanding capacity to keep up with a surge in demand for its products in the United States.
“The trend toward eating more meals at home accelerated during the pandemic, and we consider the key drivers for this to have become permanent,” Chief Executive Officer Dominik Richter said.
HelloFresh, which considers the United States its key market, delivers pre-portioned meal ingredients with recipes to subscribers. According to Reuters, sales worldwide more than doubled in the third quarter for the meal kit provider. HelloFresh reported sales of 970.2 million euros ($1.13 billion) for the third quarter. The upper end of the company’s own forecast range provided last month 968 million to 971 million euros, up 120 percent from a year earlier.
Half of the growth in sales in the third and fourth quarters was coming from customers spending more time at home during lockdowns, while the other half was growth the company would normally have expected organically, Richter explained on an analysts’ call.
For more information, click here to view HelloFresh’s quarter three results and here for the report.
How will HelloFresh’s growth continue as consumers seek different avenues for cooking from home? ANUK will continue to report.
LOS ANGELES, CA - Miracles do happen, and green ones at that. Recently, residents of Pattada Sardinia, Italy, welcomed the world’s first green puppy named “Pistachio.” Pistachio’s unusual green coloring captured the world’s attention, especially those over at Wonderful® Pistachios. Residents in Pattada are in for a treat as the company announced plans to donate a bag of Wonderful Pistachios to all residents in the city to celebrate Pistachio. The company also announced it will be donating a lifetime supply of Wonderful Pistachios to Cristian Mallocci, the dog’s proud owner who runs a small farm in Pattada.
According to the press release, news of Pistachio’s birth quickly traveled across the globe, and while his coloring is temporary, green is known for luck and Mallocci views his birth as a beacon of hope during this difficult time.
“We’re excited about the attention and joy the new green puppy named Pistachio is bringing to the global pistachio family and to our team at Wonderful Pistachios,” said Adam Cooper, Senior Vice President of Marketing. “To echo Mallocci’s sentiments, we could all use a little green hope and luck right about now, and while we wish Pistachio could join our team as a mascot, we’d like to express our excitement by gifting all of his 3,000 neighbors with Wonderful Pistachios.”
No stranger to pop culture moments, Wonderful Pistachios has worked with some of the biggest names in Hollywood and sports to promote Wonderful Pistachios over the years. Most recently, the company teamed up with boxer Jose Ramirez, 49ers’ Richard Sherman, and the iconic Sheldon the Tortoise.
Wonderful Pistachios are available in traditional in-shell and also easy-to-eat and no-mess Wonderful Pistachios No Shells, which also include Honey Roasted and Chili Roasted flavors.
More fresh produce and plant-based news are coming your way, so keep checking back to ANUK.
THE NETHERLANDS - BASF, an ag partner known for driving growth in research and development (R&D), has recently acquired ASL in a bid to continue expanding its breeding and seed production in France. ASL, known for its innovative melon breeding initiatives, will help BASF secure a leading melon breeding program. The acquisition is expected to close on January 1, 2023.
“For the global vegetable seeds industry, melon is an important crop. BASF’s vegetable seeds portfolio marketed under the Nunhems® brand already covers hybrid melon seeds,” said Vicente Navarro, Senior Vice President of BASF’s vegetable seeds business. “By acquiring ASL, we continue offering a highly innovative melon pipeline to our value chain partners and consumers. They are the ultimate motive of all our business activities and the reason why we want to make healthy eating enjoyable and sustainable by breeding new varieties that meet their expectations in taste and convenience.”
ASL, according to a press release, specializes in orange flesh type melons, such as the Cantaloupe and Charentais types. The seed production and breeding facilities near Avignon, France, will complement BASF’s existing network of 23 breeding stations for vegetable seeds worldwide and will be the first station for R&D activities located in France.
BASF noted that the transaction with ASL covers all assets, including seed production, intellectual property rights, germplasm, research and development facilities, and staff.
How will this shake up the melon market in the years to come? AndNowUKnow will continue to report.
SACRAMENTO, CA - For the Sacramento-based team at ANUK, seeing our neighbors grow in the area is extremely exciting. General Produce Company has done just this, recently signing a lease for a new warehouse. The distributor is partnering with Buzz Oates to build a brand-new, state-of-the-art refrigerated warehouse at Sacramento’s Metro Air Park. This will position the company for future growth, and the new facility will enable it to take advantage of the additional space by broadening its product mix and expanding its customer base.
“We are excited to begin the next phase of growth by designing a state-of-the-art refrigerated facility and office complex that will enable future growth, provide the highest level of food safety, and allow us to capitalize on newer warehouse technologies. This is an exciting time for all of our dedicated employees and loyal customers. It’s been 87 years in the making, and we are excited about this new chapter in our long, storied history,” says Jeff Sacchini, CEO.
Sacchini fostered a strong business relationship with the Buzz Oates organization as the company was eyeing its growth strategy and future. Having numerous new construction projects under his belt, he was eager to partner with a company that has the experience to execute and build a refrigerated warehouse with uncompromised quality, as stated in a press release.
The almost nine-acre site is ideal from a logistical perspective as the company delivers perishable products 300 miles to the North and 200 miles to the South.
“Breaking ground on this new warehouse and office space will take us well into the next several decades,” said Dan Chan, a company Partner and third-generation family member. “It’s exciting to partner with Buzz Oates on this project with the ability to tailor the warehouse and adjoining office layout to fit our specific needs. In the past, we’ve adapted three different properties to accommodate our employees, customers, and logistics. It’s been a seamless planning process so far. Now, we get to move on to the next exciting phase. Actual construction and then a final move-in will occur sometime in the fall of 2021.”
General Produce covers the Bay Area and Western Nevada, serving foodservice, retail, military, and export customers throughout the West and beyond.
Tom Chan, Dan’s Partner, also commented on the deal.
“We’ve had the opportunity to scout various existing buildings and undeveloped sites with the Buzz Oates team,” he said. “After our long tenure in downtown Sacramento, we knew we wanted to remain close to this vicinity and to the main freeway corridors. We’ve accomplished this in what we think is the ideal fit, Sacramento’s Metro Air Park. Dan and I have set a new course for General Produce. It began in 2019, with the hiring of CEO Jeff Sacchini. Under his keen leadership and broad experience, we’re realizing the family’s dream of building and operating in one of the finest produce facilities on the west coast.”
Congratulations to General Produce on this exciting expansion!
LOS ANGELES, CA - Everyone loves a little exclusivity factor, especially retailers. With this notion top of mind, Pacific Trellis Fruit is bringing the buy-side a one-of-a-kind program set to tantalize consumers’ taste buds and offer differentiation in the produce aisle: JAM table grapes.
“Opportunities in this category are primed for success as we move into the holiday season. JAM grapes have been well received by the industry since their introduction as a way to capture incremental sales opportunities in the table grape category,” Dan Carapella Jr., Senior Sales, shares with me. “The variety is an exclusive item to Pacific Trellis Fruit and we are excited to carry it and offer the program to our retail partners.”
The quality of JAM grapes has been excellent with Pacific Trellis’ earliest arrivals to the U.S. over the last month. Supplies are steady, as the team notes, making now a great time to promote.
“JAM Grapes are similar in most respects to the Concord grape in flavor and appearance. However, they are 100 percent seedless. Unlike the Thomcord, which can have some seed trace—since the Concord is a parent variety—JAM grapes are a completely unique variety that is always seedless,” Dan adds.
The JAM variety is exclusive to Brazil and was developed by Embrapa, the Brazilian Agricultural Research Corporation. The current availability windows in the U.S. Market are October into February and then gain April through June, with the potential for year-round availability in ideal weather conditions.
“We are always looking at ways to extend the market window, and because of Brazil’s unique harvesting technique of producing two commercial crops per year, we are confident we will be able to extend the periods that JAM grapes are available in the market in the near future,” Dan says.
As we talk more about supply and demand this fall, Pacific Trellis reveals that because of the similarity to Concord, there was a bit of overlap with the Michigan Concord crop. This limited demand will exist in the Midwest region until that crop has finished.
“We have since seen a seamless transition to the JAM grapes as that crop came to an end. Similarly, we’ve seen a hesitancy among retailers to carry two specialty black seedless grape options at the same time and have had some market competition with some specialty varieties out of California,” Dan reflects. “The table grape category is incredibly competitive, and that makes us all raise the bar on flavor and quality across the board.”
This year, Pacific Trellis’ standard offering is the 1-lb clamshell. The company is also offering a 2-lb or 3-lb clamshells as well as a fixed weight or a random weight high-graphic bag option for retail partners.
JAM Grapes, under the Premium Dulcinea brand, will be available as early as November.
“This is very exciting since Dulcinea, which is generally associated with our melon business, is a beloved consumer brand with high-awareness and appeal,” Dan states.
Can you feel the premium prices and exclusivity factor just hanging there on the vine? Time to pick it!
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) announced that it has imposed sanctions against Wake Forest, North Carolina-based First Fruits Holdings LLC, doing business as Four Rivers Onion Packing. The company has been cited for violating the Perishable Agricultural Commodities Act (PACA) by failing to pay $363,070 to five sellers, resulting in sanctions that include barring the business and principal operators from engaging in PACA-Licensed business or activities without USDA approval.
Direct from the USDA Agricultural Marketing Service:
The produce was purchased, received, and accepted in interstate and foreign commerce from November 2016 to July 2018. The failure to pay is in violation of the PACA. First Fruits cannot operate in the produce industry until October 26, 2022, and then only after it applies for and is issued a new PACA license by USDA.
The company’s principals, John Fowler, Mark Black, and Sean Swanson, may not be employed by or affiliated with any PACA licensee until October 26, 2021, and then only with the posting of a USDA approved surety bond.
USDA is required to publish the finding that a business has committed willful, repeated and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA approval.
By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
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 release in its entirety, click here.
SANTA CRUZ, CA - The holidays are fast approaching and retailers need to be prepared for the influx of shoppers getting ready for holiday meals. Jacobs Farm del Cabo is here to help, offering its holiday herb program. The grower is now shipping its full line of fresh, organic herb packs.
“Especially during the time of COVID-19, consumers are spending more time cooking at home with fresh ingredients, and they turn to fresh, organic herbs over dried options more frequently than in the past,” commented Sales Manager Chris Miele. “The inclusion of holiday herb mixes alongside a mix of organic and conventional herbs is a strategy that drives category growth.”
According to a press release, this herb lineup provides shoppers with all of the fresh organic herbs they need for holiday cooking. The program includes organic rosemary, sage, and thyme. The Holiday Mix is also available, which is a blend of organic rosemary, sage, thyme, and savory. Also available is the Hearty Herb Mix with organic bay leaf, thyme, and Italian parsley to complement a variety of holiday meal items.
In addition, Jacobs Farms del Cabo offers holiday shippers for in-store displays to dazzle shoppers. This encourages cross-merchandising and product pairing. What could be better for the holidays?
SEATTLE, WA - In its third quarter results, Amazon reported that its net income nearly tripled from this time last year. In the wake of this success, the retailer may also be looking toward opening a new delivery operation. Rather than rely on the US Postal Service for rural deliveries, Amazon could be opening shipping hubs across the United States to ensure rural consumers have better access.
Amazon executives said on the company’s third quarter earnings call that it will continue investing in shipping and delivery infrastructure. According to The Information, a recent batch of job postings on Amazon’s website called for candidates interested in a “new delivery business” aimed at improving the retailer’s service across “rural and super rural communities across North America.”
The initiative, titled Wagon Wheel, would offer support for smaller facilities. The job postings associated with this program have since been deleted.
As Amazon continues to trial new ways to expand, how will this potential new operation change the way it operates in the market? AndNowUKnow will continue to report.
HURON, CA - Mother Nature has served up more tricks than treats this autumn, her latest being to bring the heat in the Salinas Valley before cooling things down in time to make the iceberg transition to the next region—Huron, California, for some and Yuma, Arizona, for many. According to Church Brothers Farms’ Jason Lathos, while challenging, it’s all a part of the growing formula.
“We are in the middle of transitioning from Salinas with Huron still going. We are one of a handful of growers operating in Huron before making the move to Yuma, and this year it is paying off with iceberg quality looking very good. I would call what we are seeing here a premium pack—very fancy,” Jason says.
This year was a perfect storm for a dynamic market, he shares, with Salinas wrapping early and seeing medium-quality while Yuma is just getting started. Despite the challenges, demand has been highly active as growers work to keep the supply up to par.
“We are seeing a gap in the transition. In the Salinas Valley, we saw three major heat waves compounded with a new virus, called Impatiens, which ultimately affects yield, resulting in an active market that we have been seeing fluctuate since September,” Jason explains. “I would say it’s fair to forecast higher prices due to lack of volume to cover the demand in the coming weeks.”
In addition to natural variables, there is a new outlier to the iceberg formula Jason points out: an increase in demand in Canada.
“Right now, stricter Canadian policies on accepting romaine lettuce into the country has had a ripple effect on iceberg. The short-term effect of a potential romaine issue—one we haven’t seen but that buyers are planning for based on the past couple of years—has made for greater iceberg demand,” he reflects.
While the market is still active trending toward tight, Jason says that the early forecasts for Yuma look good once the region has a chance to get on track.
“A few different variables have changed up the formula this year, but we are planning for it and overall it looks like we will soon be back to normal,” Jason assures.
As suppliers continue to work their magic on an unorthodox year, we will continue to report the trials and triumphs at AndNowUKnow.