GERMANY - Metro AG is on the move again with another acquisition deal. Recently, the German wholesaler completed the divestment of its Real hypermarket chain. The wholesaler is now eyeing another deal, this time acquiring the Aviludo Group, purportedly the second-largest foodservice distribution player in Portugal.
“Following the acquisitions of Pro à Pro, Rungis Express, and Classic Fine Foods in recent years, the acquisition of the Aviludo Group is a logical next step to further strengthen Metro’s expertise and reach,” Olaf Koch, CEO of Metro AG, commented. “We are now expanding the range of services for our customers in the important Portuguese market.
Aviludo generated sales of €152 million (around $180 million USD) last year supplying more than 13,500 customers, with a focus on independent restaurateurs, canteens, and restaurant chains, as stated in the press release. The business has a strong presence in Lisbon and the tourism-oriented south.
Metro stated in its release that the acquisition was a decisive step toward becoming fully focused on HoReCa, the Dutch foodservice and hotel industries, and would strengthen its position in the growing foodservice distribution segment. In addition to the operational business, the transaction comprises the distribution platforms of Aviludo.
“Thanks to Aviludo’s strong position, we will strengthen our nationwide presence in Portugal and we can offer our customers real added value in products and services, hence becoming very well positioned for further growth,” Koch continued
Aviludo is expected to remain broadly independent and keep its brand.
“With Metro AG, we found the right partner to accelerate our growth and enhance our commercial offer while at the same time preserving Aviludo’s success formula and greatest assets: our people and culture,” Aviludo Group’s CEO José Ressurreição stated.
Financial terms of the deal were not disclosed. The transaction is subject to regulatory approvals and is expected to close in the first half of next year. For more information on the deal, click here.
As Metro AG solidifies its hold in the Portuguese market, will we see a similar move for the U.S. market? AndNowUKnow will report.
MONTEREY, CA - As the organic sector continues to draw the attention of both retailers and consumers alike, the Organic Produce Network and Category Partners have released third quarter results for organic produce sales and volume, and the numbers show that the category is continuing to skyrocket.
“Once again, sales of organic fresh produce show no signs of slowing and continue to be a major growth opportunity for retailers across the country. In the third quarter, organics drove twice the dollar share compared to volume share—12 percent of total produce dollars and 6 percent of produce volume—underscoring why the growth of organics are so powerful and important to retailers,” said Matt Seeley, CEO, Organic Produce Network. “As consumers continue to shift from conventional to organic produce, substitution is driving incremental dollars.”
As retail trends across the industry have pivoted due to stay-at-home orders during the pandemic, consumers are preparing more meals at home than ever before, and in order to do so they have been reaching for fresh ingredients, including organics.
Due to the increased consumption of at-home meals, organic fresh produce sales peaked at $2.2 billion for the third quarter, according to the report, and made up 12 percent of all produce sales as well as 6.4 percent of produce volume.
Continuing on with patterns seen in earlier quarters this year, organic growth has maintained steady upward trajectory, seeing a 16 percent increase in the third quarter and 15.6 percent in volume, nearly double the numbers of conventional produce at 8.2 percent volume.
Of the categories seeing the highest numbers, packaged salads, strawberries, and herbs generated the highest growth in organic dollars during Quarter Three, together adding $105 million in incremental sales growth over the same period last year. Packaged salads alone accounted for 17 percent of all organic fresh produce sales.
Another leading cause for the sales spike in Q3 was the increase in availability, supplies, and selection of organic fruits. Categories like berries saw strong harvests, leading to strawberries ranking second in organic dollars during the quarter and blueberries coming in as the fourth highest dollar contributor.
In addition to berries, organic apples too remained strong and saw a nearly 20 percent jump in sales from $107 million the previous year to $128 million at the end of the third quarter. Organic grapes joined organic apples as a top 10 category in organic produce dollars, even after seeing an eight percent decline in quarter three dollars compared to last year.
Additionally, bananas continued to lead in volume of organic produce offering, with 18 percent of total volume—an 8.3 percent growth from the previous year.
“The Midwest and South continue to be the strongest opportunity regions for organic produce growth. Organic ACV dollars in those two regions lag far behind the West and Northeast,” said Steve Lutz, Senior Vice President of Insights and Innovation for Category Partners. “Even though organic growth is strong compared to conventional produce, growth rates in the Midwest are below every other region, with ACV volume and dollar performance in the Midwest less than one-half the rate of supermarkets in the West.”
Of the regions of the United States, the West led organic sales and volume, generating a 20 percent increase in dollars and 17 percent increase in volume compared to last year. ACV performance also saw growth in the third quarter from the previous quarter, averaging $8,751, a jump of nearly 25 percent from Q2.
To read the full performance report, click here.
How will the organic sector continue to boost its sales and volume over the next quarter? Continue reading AndNowUKnow for answers.
WENATCHEE, WA - One of the key things I look for when biting into an apple is how juicy it will be. With Starr Ranch Growers’ JUICI™ apples, there’s no question as to how juicy these crunchers will be! To help spread the word about these aptly-named apples, the grower will be launching several marketing activities this fall with the help of a new partnership.
“Marketing is key to driving trial and repeat purchase,” Dan Davis, Director of Business Development, said. “We are successful in getting JUICI apples into our retail partners’ stores, now we have to make sure their shoppers can find them, try them, and come back for more.”
According to the press release, this harvest is the first time the company has had organic JUICI apples in promotional quantities. Starr Ranch also has new packaging for both conventional and organic JUICI apples in corrugated boxes that reduce the use of plastic and is adding a JUICI specific page of content with recipes and other usage facts on the Starr Ranch Growers website.
To further its marketing strategy, the grower will be launching JUICI-specific social media accounts on Instagram and Facebook. Starr Ranch formed a new partnership with a major social media influencer who will promote JUICI apples on their respective sites and is also working with micro-influencers on similar promotional activities.
“Micro-influencers focus on a specific niche or area and are generally regarded as an industry expert or topic specialist,” said Davis. “They understand their followers and know what kind of content they want to consume so they create content that resonates with their audience and helps them establish a sense of bonding and trust.”
Starr Ranch plans to leverage its new social media sites to host givewaways, including five gift boxes containing JUICI apples with drink tumblers JUICI drink recipe cards, and a customized JUICI-scented candle labeled, “Cheers to JUICI Harvest.” In addition, the company will give away 20 gift boxes containing JUICI apples and customized JUICI slides (athletic slides/slippers) with a customized JUICI-scented candle labeled, “Sliding Into JUICI Harvest.”
With the scent of JUICI in the air, cravings for the apple will surely grow this season! AndNowUKnow will continue to report on the latest, so stay tuned.
SACRAMENTO, CA - Bust out those magnifying glasses and blow the computer screen to 200 percent because it is Snack cover contest time! We’re finishing off the week with a good ol’ Friday contest to bring some cheer—and anticipation—over the weekend.
On the cover of our tubular October issue, the apple has gone for a quick dip in the ocean and got swept up in the tides while watching the surfer ride the waves. Can you find the lost AndNowUKnow logo? Not only is it a hunt for the apple, but it’s a race against the industry’s top sleuths!
If you haven’t received a hard copy of our October issue, click here for the digital cover. Then, to truly prove to us that you’ve found our logo, we need you to take a victory picture of yourself with your finger pointing right at the logo. I repeat:
- Your FOUND the Apple Logo photo must include your face
- And your finger must be pointing to the AndNowUKnow apple logo
Once your proof of victory is complete, send that selfie over to us at [email protected] to join the running for the $100 cash prize! If your photo lands in our inbox ahead of everyone else’s, you could join the winners' circle with some of the quickest produce people, like:
- Osmerlin Garcia of Nature Fresh Farms (reigning supply-side champ)
- Betty Tomao of The Save Mart Companies (reigning buy-side champ)
- Monina Knox of Sobeys
- Chris Olsen of Gold Coast Packing
- Kimberly Chan of 99 Cents Only
- Danny Ortiz of Sysco
- Brandi McGuire-Sisco of Topco Associates
- Mike Mendez of Nature Fresh Farms
If you want a leg up for future challenges, click here to subscribe to The Snack (a $129 per year value).
Who will come out on top this round? It could be you!
COACHELLA, CA - I’ve always found the bell pepper category to be incredibly unique. From bright red, orange, and yellow to crisp green, these fresh produce items offer a variety of eating experiences unlike any other. Curious as to how this exciting category is faring in the market, I got in touch with Katy Johnson of Marketing at Prime Time International.
“Prime Time has multiple growing locations throughout Southern California, Baja California, and Mainland Mexico,” she began. “We are currently in a transitional period, meaning harvest is slowly winding down in Oxnard, California, and moving south for the winter. Harvest has begun in Mexico and is just around the corner in the Coachella Valley.”
Katy told me that red, yellow, green, and orange bell peppers are all being picked and packed at this time, as well as mini peppers. Bell peppers are being harvested from both open field and hot house production, bringing a wide range of flavor and eating quality to market.
“Across the board, quality remains very good and supply is consistent. California has had a hot summer,” explained Katy. “In the desert, there have been more than 160 days with over 100 degrees which has been stressful for the new plantings of the fall crop, but not devastating. Mexico has experienced much of the same.”
Even with fluctuating buying patterns due to COVID-19 bringing in less foodservice and more retail business, Katy assured me that the market has been steady. Additionally, pricing has remained steady as consumers continue to seek out fresh bell peppers.
As we continue to see trends shift in the fresh produce industry, keep coming back to AndNowUKnow for exclusive market updates.
CHILE - Yesterday morning, news broke that an earthquake had occurred in northern Chile. The quake clocked in at a significant magnitude of 6.0 and a depth of 6.2 miles. Though extensive details have not been released, we at ANUK were relieved to learn that no serious damage has been reported.
According to the news source Volcano Discovery, the earthquake was widely felt by the majority of individuals in the area, causing light to moderate damage. Surrounding cities that may have also felt the quake include Taltal, Diego de Almagro, Antofagasta, and Copiapó.
Thankfully there have been no reports in regards to fresh produce operations being damaged in the area.
As Mother Nature continues to make her mark, AndNowUKnow will be here to keep you informed of any news as it relates to fresh produce.
ELGIN, MN - As a writer I understand there is almost nothing that cannot be put into words. However, sometimes you just need a good emoji to perfectly convey your message. I have a feeling that Honeybear® Brands may think the same way as the grower has introduced new custom emoji PLU stickers to brighten up snack time.
“Using emojis for marketing has been shown to drive engagement, especially with a younger audience,” says Kristi Harris, Brand Manager. “The PLU sticker is required to be on each apple, so why not have a little fun with it.”
Shoppers everywhere can see their favorite emojis gracing the produce aisles, already hitting shelves earlier this month. According to a press release, the emojis include Satisfied, Happy, Tears of Joy, and Hangry and will be placed on honeycrisp and gala apple varieties. Just as consumers search for the perfect emoji to add to their text messages, so too can they hunt for their favorites amongst the apples.
Already making kids smile in a focus group hosted by the brand, the new emoji PLU stickers offer up an easy way to bring joy into your fresh produce section. So, make sure to stock Honeybear’s apple varieties to add something extra to your aisles.
NEWARK, DE - What’s better than one new industry leader, you ask? The answer is six new leaders, all of whom have been recently appointed to the Produce Marketing Association’s (PMA) Board of Directors. Today, October 22, the Board meets for the first time since electing the new members who span the industry supply chain and global community to provide a wide variety of backgrounds and perspectives to evolve PMA and its mission.
“I am excited to welcome the six newly elected leaders to the PMA Board of Directors,” said CEO Cathy Burns. “These volunteers are essential to helping PMA reach the goals set in our strategic plan and realizing our vision to grow a healthier world. They provide strategic guidance, thoughtful leadership, and their own unique perspectives to guide the organization’s growth and value to members and industry. It’s a blessing to have their partnership and collaboration in the years ahead.”
The Board of Directors now includes Alan Aguirre Ibarra, an industry vet with an extensive knowledge of the International produce sector as well as commercial and philanthropic experience. Ibarra is the CEO of Grupo Alta and Divince Flavor LLC and offers up 29 years of service within the international produce world. In addition to his role as CEO of Grupo Alta, Ibarra is the President and Founder of Fundación Alta IAP, an organization that provides the necessary means to give agricultural workers a healthy and dignified lifestyle. He is also the current President of the Hermosillo Food Bank and CEO of Distribuidora de Huevo de Baja California, an egg distribution company. He also serves on the Board of the Citi Banamex Group.
Joining Ibarra is Amelie Aust, the Co-CEO and second-generation Owner of Fall Creek, a soon to be multi-national blueberry breeding and nursery company. Over the past 10 years she has grown her family business to operate on four continents and is responsible for the commercialization of new berry varieties for the company, extending to the consumer market as she helped launch Brazelberries® in 2009. Aust currently serves on the Board of Global Women Fresh.
Nikki Cossio will also be joining the Board as the Founder and CEO of Measure to Improve. Cossio is recognized by her peers in the produce industry as a leader, and is known for her success in building sustainability programs and innovative industry solutions, for which she has won numerous awards. She currently serves on PMA’s Sustainability Committee and is a member of the Stewardship Index for Specialty Crops Coordinating Council.
Amongst the six stand Amy L. Gates, the former President of Frontera, first entering the produce industry in 2004 as she started with the company. She began her career at Famous Software helping Frontera install its Enterprise Resource Planning software, before making her way up the ranks. In her time with Frontera, Gates streamlined and optimized its operation, helped create new companies, and led the company to being a stand out in traceability and food safety. Gates has also served on the PTI Joint Industry Leadership Council since 2009.
Daniel Mathieson is the Chief Executive of Zespri and will also be joining the Board. Mathieson has knowledge of international produce operations as he spends his time traveling between the New Zealand offices of Zespri and its global sales and marketing hub in Singapore. Mathieson's focus is on supporting a healthy ecosystem while also developing a teams and strategies for the company. He has worked for Zespri for over two decades, holding a variety of positions across several different divisions.
Rounding out the six new members is Jim Richter, the President and CEO of Amerifresh, the strategic business arm of US Foods. Richter has served across retail and the supply chain for over 35 years, spending 10 of those years at Wilcox Fresh as CEO and 25 year working at retail and supermarket chains like at H-E-B, Marsh, Randalls-Tom Thumb, and 7-Eleven in various leadership roles. He has received the International Fresh-cut Produce Association Fresh-cut Promoter of the Year in 1999 and has served as a PMA and Center for Growing Talent volunteer in different capacities over the years.
Dwight Ferguson, President and CEO of the California Agricultural Leadership Foundation, will lead as Chair of the PMA Board, focusing on looking ahead to 2021 and implementing PMA’s strategic new plans.
“Our vision remains the same—to bring together the global produce and floral communities to grow a healthier world—but we will use some new filters to get there,” said Ferguson, “including: a stronger focus on building deeper global connections with produce and floral sectors worldwide; a lens of diversity and inclusion to ensure we do all that we can to welcome new talent and new thinking into our community; and exponentially expanding our reach to include everyone who enjoys the joy of fresh produce and floral.”
As six new members step into their roles as part of PMA’s Board of Directors, we wish all of them the best of luck and offer congratulations. Here at ANUK we look forward to seeing the impact that each of new leaders brings to PMA and its missioin.
SACRAMENTO, CA - Serving as such an integral resource for the industry, it’s important that organizations like the California Leafy Greens Marketing Agreement (LGMA) stay up to date in terms of how they deliver information. LGMA has made a significant improvement to this operation recently, launching a new website dedicated to everything you need to know about lettuce and leafy greens. This new website at LettuceInfo.org is an evidence-based resource created specifically for registered dietitians, influencers, professional food writers, and consumers. The website will help people access facts and get answers about lettuce food safety and nutrition.
“This website contains information about how lettuce and leafy greens are grown, what farmers are doing to make sure their products are safe, and why these foods are among the safest, healthiest things we can feed our families,” said April Ward, Marketing Communications Director. “And, if there’s ever a problem with the safety of lettuce, this website is the place you’ll find updates and information to make sure we stay safe.”
According to Ward, the LGMA created the site because when lettuce is involved in a foodborne illness outbreak or recall, there are questions and concerns that can create fear about eating this normally healthy food. She emphasized that the LGMA is not a typical marketing organization and its primary role is to verify that farmers are following a set of science-based food safety practices on the farm.
“The LGMA does have a role to communicate with people about its activities. To ensure the website delivers accurate information, we’ve pulled together a team of experts in nutrition, farming, and communication to serve as advisors,” said Ward. “You can learn more about our advisors under the About Us section of the website. The team includes registered dietitians, growers, and advocates for food safety.”
As noted in a press release, the new website includes information about the lettuce and leafy greens products included under the LGMA food safety program. It has facts on production, nutrition, and usage ideas. Several informational videos are also found on the website to help illustrate what lettuce farmers are doing on their farms to prevent foodborne illness outbreaks as part of the LGMA program.
“I’m really pleased to be a part of the LGMA and this new website because it’s all about making sure people understand these foods are healthy—but it’s also important that we talk to consumers about food safety,” said Kathleen Chrismer, a food safety advocate and a member of the new website’s Advisory Team.
Chrismer’s daughter, Rylee Gustafson, was sickened in the 2006 E. coli outbreak associated with spinach, and Chrismer currently serves as a public member of the LGMA Board of Directors.
“This website was created because it’s important to share information with people like registered dietitians and bloggers who can help us communicate about the importance of food safety and making sure these healthy foods are, in fact, safe to eat,” says Chrismer. “But we also need to remind people that if an outbreak occurs, real people may become sick. People like my daughter.”
Ward also encouraged anyone who communicates about food to follow the new social media channels associated with the website on Facebook, Twitter, or Instagram and to sign up for health and safety alerts so they can keep learning more about lettuce and leafy greens.
“We hope people will take some time to look through our website to see for yourselves what’s being done on the farm with respect to food safety and to learn how and why lettuce and leafy greens are so nutritious,” said Ward.
New innovations are just around the corner, so keep an eye out for more reports from ANUK.
LEEDS, ENGLAND - More and more industry giants are committing to being more sustainable and environmentally forward. The latest retailer to commit itself to this pledge is the British supermarket group Asda. This week, the retailer pledged to reach zero carbon emissions by 2040 and to reduce its waste production by 50 percent. To inagurate this effort, Asda is unveiling a new format by opening its first sustainabile trial store in Leeds, northern England.
“This is an issue that matters greatly to our customers. Our own insight tells us that more than 80 percent believe that supermarkets have a responsibility to reduce the amount of single-use plastics in stores,” said CEO Roger Burnley.
The retailer said its customers will not pay more for greener options. According to Reuters, this move responds to growing consumer demands for less waste and more action on the environment. The launch also includes committing to a net “regenerative impact on nature” no later than 2050.
The new store is designed to help shoppers reduce, reuse, and recycle. Around 53 fresh produce lines are currently sold in a loose and unwrapped format including 29 new lines such as cauliflowers, mushrooms, apples, cabbages, and baby plum tomatoes. The store will also feature a reverse vending machine for cans, plastic, and glass drink bottles, and a hanger recycling facility.
Asda’s announcement follows Walmart’s recent sale of the chain earlier this month.
Will we see more changes in the retailer’s operations? And will those changes reach across the pond to the United States? ANUK will follow the retail trail.