HOUSTON, TX - Change is happening all around us, and Sysco Corporation is following the pattern with its announcement that Tim Ørting will be joining the company as Executive Vice President and President of Foodservice Operations—International.
Ørting will officially step into his new role beginning on January 4, 2021, where he will lead Sysco’s International Operations in Canada, Europe, the Bahamas, and Latin America while based in Sysco’s London Office. As part of his new position, he will oversee development and execution of key growth strategies across these locations.
“Tim is an experienced food executive having led commercial and supply chain teams across multiple diverse markets and geographies,” said Kevin Hourican, President and Chief Executive Officer. “His strong track record of delivering results and extensive international experience, including expertise related to mergers and acquisitions, integrations, joint ventures, and new market entry, uniquely position him to lead and grow our international businesses."
Before joining Sysco, Ørting has held a leadership role at Arla, the international dairy cooperative, for over 30 years. According to a press release, he currently serves as the Executive Vice President, International for the dairy producer and leads a multinational team across more than 30 countries, showing his penchant for leadership.
With such vast knowledge of the industry and over three decades of experience, Ørting is set to help Sysco continue to grow and expand its international business. We wish Tim the best of luck in his new role and are excited to see what the partnership will hold for the future of Sysco’s growth strategies.
SEATTLE, WA - Major growth is in Charlie’s Produce's plans as the employee-owned produce company has recently acquired Muir Copper Canyon Farms. As of September 1, 2020, Charlie’s Produce has integrated systems with Muir to enlarge sourcing options, pricing systems, invoicing, and online sales for customers. With this acquisition, Charlie’s Produce will extend its network of seven distribution centers throughout the West.
“We are excited to welcome the Muir Copper Canyon team into the Charlie’s Produce family,” said Jeremy Smith, President of Charlie’s Produce. “We are constantly seeking ways to improve our services on behalf of our customers and grower partners. The addition of Muir Copper Canyon Farms will expand our network to the great Intermountain region. We look forward to working with local growers and maintaining the great customer relationships Muir has established in over six generations of serving this market.”
With this transition, Muir will gain greater purchasing power for local, regional, and national products, as well as bring in new ones. Charlie’s can also provide a deep personnel force and offer Muir the opportunity to expand retail capability and allow employees to build equity, which is a great thing.
Over the past five years, Charlie’s Produce has expanded rapidly through increased services, produce processing, geographic extension, and acquisition. According to the press release, the company opened a new distribution center in Los Angeles in 2015; entered the Boise, Idaho, market in 2017 through the purchase of Northwest Produce; and added Better Life Organics sales and distribution into its Los Angeles division in 2019.
“We could not have been more fortunate to acquire a produce distributor who is also passionate about produce, their employees, and the success of our customer and partners,” said JT Travers, COO at Charlie’s Produce. “We’re ecstatic about the opportunity to expand our footprint and distribution network and we have a great team of people who are highly customer-centric and dedicated in their roles and responsibilities.”
Since William S. Muir founded his farm in 1850, Muir Copper Canyon Farms has provided exceptional fresh produce, customer service, and innovative product offerings to local merchants, restaurants, and neighbors.
While the company has grown over the past five generations, the Muir family remains committed to the same ideals that William first began to cultivate: Integrity, Quality, Industry, Value.
“We are excited about the transition to Charlie’s Produce and to combine with a respected company that aligns with our values and standards when it comes to fresh food distribution,” said Phil Muir, Owner of Muir Copper Canyon Farms. “Charlie’s Produce will be able to provide us with a more efficient warehouse management and logistics system, as well as enhanced services and products to customers. We look forward to continuing to expand and providing our customers with strengthened service and product offerings that help their businesses continue to thrive.”
For more developments in the industry, keep checking back to ANUK.
CINCINNATI, OH - It has been said time and again that every end marks a new beginning. This old adage once again speaks to reality as Robert Clark, SVP of Supply Chain, Manufacturing, and Enterprise Sourcing, has announced his retirement after more than 35 years with Kroger. As Clark steps down, Gabriel Arreaga will begin in his new role, taking over for Clark as Senior Vice President of Supply Chain beginning October 1.
In his new role, Arreaga will be responsible for the supply chain organization including logistics, inventory, and replenishment. He most recently served as SVP of Supply Chain for Mondelez International. During his tenure there, he led a team of over 14,000 employees within the network of 41 internal and external factories, 49 fulfillment centers, direct-to-store branches, and logisitics and product development. Arreaga has also served as VP of Operations for Stanley Black and Decker as well as roles at Unilever.
"Gabriel's proven history of outstanding leadership and management of complex supply chain and logistics functions will accelerate our ability to provide a seamless shopping experience for our customers," noted Rodney McMullen, Chairman and CEO. "We welcome Gabriel and his 22 years of leadership experience in the industry and look forward to adding his fresh perspective and insights to our growing operations."
Arreaga holds a bachelor's degree in Business Administration from Del Valle University and an MBA from INCAE, a top global MBA program led by Harvard University's curriculum located in Central America.
He also has completed several advanced management programs at Harvard University and served as a research assistant for MIT faculty on Corporate Strategy.
"We thank Robert [Clark] for his 35 years of dedicated service and leadership," McMullen continued. "He's been an instrumental leader at all levels of our organization and has built collaborative teams and developed business strategies that have advanced our operations and uplifted our associates and customers."
As the two industry leaders begin down different paths, we here at ANUK wish them the best of luck and look forward to seeing what the future holds at Kroger.
MONTEREY, CA - Change is the lifeblood of innovation and growth, and that is why it is so exciting to see people being promoted and changing positions. Growers Express recently made some changes of its own by announcing that Kirk Wagner is being promoted to Chief Operating Officer. With over 20 years of industry experience, Wagner will serve as an integral part of the company as it continues to expand.
“I am truly honored to continue to add value to the Growers Express team and our efforts to take this company to new heights,” said Wagner. “I have been invested in the operations of the company for many years and look forward to supporting our long history of groundbreaking innovation and the many opportunities in front of us.”
In his new role, Wagner will join the executive team and will report directly to Tom Bryne, President, as well as Mark Dendle, CEO. Together, the team will continue to set company performace goals, develop and implement new strategies, and create business plans and procedures, according to a press release. In addition to serving as the new COO, Wager will remain on board as the company’s General Counsel, which he has served as since first starting in 2011.
Prior to working with Growers Express in his starting role as General Counsel, Wagner served as an attorney at law firms in Monterey, California; Houston, Texas; and Las Vegas, Nevada.
“With over 20 years of working with food industry suppliers, manufacturers, and customers up and down the fresh and frozen supply chain, Kirk brings an incredible breadth of experience in building relationships and problem-solving that has been critical for the company during a time of remarkable growth,” said Byrne.
Growers Express appoints Wagner to this new role as the company continues to make innovation a key priority. As the new COO, he will focus on growth through new and significant achievements following in line with Growers Express’ recent operational acheivments like the launch of Green Giant Fresh™ Cauliflower Crumbles chopped cauliflower as well as the many other value-added products the company has helped to launch.
We look forward to seeing what Kirk will bring to the Growers Express team, and wish him all the luck in the world as he continues his journey with the company.
KINGSVILLE, ONTARIO, CANADA - In an ever-shifting market, the key to advancement, it would seem, is new technology. Red Sun Farms is wholeheartedly embracing new technology by lighting up a high-tech greenhouse that will ensure a year-round local supply from Canada.
"Introducing these new technologies into the greenhouses will allow Red Sun Farms to offer year-round supply from Ontario," Jim DiMenna, President, remarked in a press release. “Usually over the winter months, we ship our product from Mexico to Canada; however, this new lighting technology will allow us to give some of our Canadian customer's limited products over the winter months."
In order to support this year-round project of Ontario-grown produce, Red Sun Farms is building a new state-of-the-art facility with a dedicated, partially lit growing area. This investment, the company noted, will allow for a longer growing season for specialty tomatoes.
Additionally, Red Sun’s second project includes 42 lit acres, all of which are dedicated to growing year-round in both organic and conventional farming. New technology allows for the greenhouse grower to extend its growing season into the winter months. This is a direct response to the consumer demand for local produce year-round.
And last, but certainly not least, Red Sun is introducing a first-of-its-kind tech that will supply Ontario peppers 365 days a year. This unique technology, the company explained, recreates and modulates the full spectrum of the sun's natural light, essentially enabling the farm to deseasonalize productions.
We’re here to cover the latest in the competitive greenhouse sector, so stay tuned.
MCALLEN, TX - As it doubles down on expansion, Fox Packaging has acquired additional press in the form of a UTECO printing press. This will be added to the company’s dedicated printing facility.
“Expanding our manufacturing capacity is essential to meet growing customer demand and it also presents Fox Packaging with an opportunity to make fast turnaround on large print runs,” shared Lucas Fox, Director of Operations.
According to a press release, the UTECO press is a modern equipment solution that executes unmatchable print quality, extremely fast job changes, and can effortlessly run up to 10 colors, with four-color process and Pantone colors.
“This technology visually captures brands' colors and messaging in a way that catches a consumer’s eye and builds brand recognition and loyalty,” said Victoria Lopez, Marketing. “As a member of the Sustainable Packaging Coalition®, we are an approved printer of the How2Recycle® label, a program that highlights a universal recycling language on packaging to provide consistent recycling information.”
The UTECO Onyx adds to Fox Packaging’s overall capacity as it strategically retires units that have served their lifetime. Implementing new technology helps maintain competitive lead-times with expanded printing capabilities and is overall more efficient for long print runs.
“Our teams understand that circularity is a critical component of service and operational competence,” continued Fox. “UTECO flexographic printing equipment is environmentally friendly and responsibly uses energy, a feature we are exceptionally proud of.”
As the company continues to update its equipment, every update is made to advantageously benefit its operations. Both retailers and consumers are expecting mindful manufacturing processes, and Fox Packaging’s constant improvement on waste reduction and sustainable initiatives makes it an ideal industry partner.
Check back in with AndNowUKnow as we continue to cover the latest in the fresh produce biz.
UNITED KINGDOM - Aldi is one such retailer that continues to drive growth no matter what it does. Over the last few months alone, it has racked up headlines underscoring its aggressive expansion. Now, the retailer plans to invest another $1.6 billion (£1.3 billion) over the next years across its U.K. market.
“For over 30 years, our success has been driven by the ever-increasing number of shoppers who put their trust in Aldi every time they shop with us,” remarked Giles Hurley, Chief Executive Officer, Aldi UK and Ireland, in a press release. “This is what enables us to keep investing in Britain—in our products, our prices, our people, and in the communities we serve. The founding principle of our UK business back in 1990 was to offer a carefully-selected range of great quality products at the lowest prices. Whilst we’re continuing to innovate to give customers an even better experience and greater convenience, our core philosophy remains unchanged.”
The investment will be chiefly in new and upgraded stores, distribution centers, and additional innovations across the business, the press release went on to note.
Not only does Aldi plan to open roughly 100 new stores across the U.K. over 2020 and 2021, it also plans to upgrade over 100 stores under its Project Fresh initiative. The distrubiton centers will see an expanded network and the new ‘click and collect’ service will continue to grow.
As we cover the latest in Aldi’s expansion, stick with AndNowUKnow for more.
HOUSTON, TX - Cutting-edge solutions in the foodservice sector continue to blow me away as our industry’s leaders bring new and exciting launches to market. Sysco Corporation is one of the latest to do so, announcing the nationwide launch of ten exciting menu concepts exclusively for its customers through the company’s Cutting Edge Solutions platform. These chef-tested and innovative products are being launched to help foodservice operators with on-trend dining options as they enter a new normal phase of restaurant dining amidst the global pandemic.
“Our Cutting Edge Solutions platform helps our customers succeed in today’s rapidly evolving foodservice environment where people are dining in new and different ways,” said Brian Todd, Senior Vice President of Merchandising and Marketing. “By understanding changing consumer behaviors, we can connect foodservice operators with the products and solutions needed to meet these changes successfully. Cutting Edge Solutions are even more critical during these challenging times, to help operators continue to evolve their business, drive increased dining traffic, and launch new revenue streams.”
Designed to help Sysco’s customers stay ahead of their competition, Cutting Edge Solutions products are sourced from best-in-class suppliers at the forefront of innovation. Each offering meets important dining trends such as comfort foods, outdoor and patio dining, takeout-friendly, better-for-you ingredients, as well as versatility and labor-saving solutions. Cutting Edge Solutions products help operators easily update their menus while also enabling streamlined back-of-house operations, according to a press release.
As COVID-19 has disrupted the way we work, socialize, and enjoy leisure activities, people are craving familiarity and comfort in all they do, including how they eat. Comfort foods are king when it comes to enticing diners and are also easy to add to a new or revamped patio menu. A comfortable outdoor dining environment goes hand-in-hand with an updated patio menu, and Sysco offers equipment to provide the comfort of indoors with the outdoor ambience diners want, including heaters, wind breaks, and fire pits.
Sysco’s new line of Comfort Foods includes:
- Arrezzio Imperial Luxe Ravioli
- Sysco Imperial Pimento Cheese Bites
- Sysco Imperial Dessert Mashups
- Simplot® Junior Cut Sidewinders™ Fries
- Tyson® Boneless THigh Wings
In this rapidly changing environment, people are also looking for balance. The Sysco Brand Cutting Edge Solutions line of products includes several better-for-you offerings for diners prioritizing their health or seeking “food-as-medicine” options to balance with their comfort food indulgences. These options include plant-based items from Sysco Simply, Sysco’s lifestyle brand designed to help foodservice operators meet growing consumer demand for flexible and customized menu choices.
Some of Sysco’s new better-for-you offerings include:
- Sysco Simply Plant-Based Protein
- Sysco Simply Plant-Based Sprouted Grain Breads
- Sysco Simply Plant-Based Vegan Cornettos
- Sysco Classic Fully Cooked Chicken Skewers
Fresh-forward, plant-based products are synonymous with health, meaning that these offerings will be a boon for consumers looking to fuel their immunity through food. Farm-to-table and fresh produce demand continues to rise, so be sure to keep this in mind when building future foodservice programs.
With such a wide array of offerings to choose from, there’s no telling where Sysco’s foodservice partners are headed next. To keep up on the latest trends, keep checking in with us here at AndNowUKnow.
YAKIMA, WA - Driving organic growth for its retail partners, Superfresh Growers reported the strongest monthly growth for its organic apples and pears it has recently seen. Both categories were up nearly 30 percent in the month of August. Organic apples were up 30 percent in dollars and organic pears up 29 percent in volume.
Since COVID-19 hit, the grower reported that this is the third month in a row where apple growth has been up more than 19 percent. Despite a late Labor Day and disrupted back-to-school schedule, the overall apple category has maintained good sales. Apple volume was up two percent in volume and flat in dollars, due to a two percent lower retail price average of $1.71, a press release explained. According to Nielsen data, Honeycrisp sales were up 17 percent, with Fuji apples following close behind with an increase of 11 percent.
Pear demand has also increased, growing in August by two percent in dollars—due to a seven percent rise in average price per pound. Bartlett pears led the way with eight percent growth in dollars, despite a decrease of four percent in volume, reflecting a shorter California Bartlett pear crop. The average Bartlett price per pound was up 13 percent over last year. Superfresh reported that it has seen a firm market transition from California to the Pacific Northwest.
Asian pears continue to drive growth, up 31 percent in dollars and 18 percent in volume. The harvest is underway and Superfresh reported it is already seeing a nice crop.
Organic apples too are driving growth, up 30 percent in dollars and 23 percent in volume during August. Strong organic growth has become a trend during COVID-19, the company noted, with June up 12 percent in dollars and 19 percent in volume. In July, the category was up 28 percent in dollars and 27 percent in volume.
During August, organic dollar share represented an outstanding 15 percent of the category. With the advent of the Northwest pear crop, organic pears rebounded, showing five percent up in dollars and 29 percent in units.
During COVID-19, packaged apples and pears continued to trend upward. Forty-five percent of apple volume was packaged, up from a pre-COVID average of roughly 40 percent. Twenty-four percent of pear volume was packaged, up from the pre-COVID average of 18-20 percent. Bags and other consumer packages are popular for “stocking up,” value, perceived safety, and “grab-and-go” convenience.
In order to support the current packaging preferences, Superfresh is offering its Superfresh Kids™ program. Each apple variety comes with a unique game on the bag and is designed for little hands. The fun graphics and games attract the attention of kids in-store—meaning that parents don’t even have to convince little ones to eat their produce. The bags are available in Gala, Granny Smith, Fuji, and Honeycrisp apples.
The apple and pear harvest is nearly half-way over. All new crop pear varieties are now available. Superfresh is now packing Gala, Honeycrisp, Granny Smith, Fuji, and Red Delicious. Autumn Glory® apple harvest is just about to start, followed by Cosmic Crisp® and Pink Lady® apples.
Stick with AndNowUKnow as we continue to cover the latest in all things fresh.
ISSAQUAH, WA - While COVID-19’s impact on the market has varied, we have consistently seen a rise in healthy, fresh food as consumers’ eating habits continue to evolve. This was further proven in Costco’s recent fourth quarter earnings report, with fresh food being a strong sales driver. Taking a look at the company’s operating results for the 16-week quarter and the 52-week fiscal year, which ended August 30, 2020, trends spurred by the pandemic ultimately led to nearly $53 billion in sales.
“Looking at the core merchandise categories in relation...to only their own sales, so core-on-core, if you will, margins year over year were up by 70 basis points,” said Richard Galanti, Director, Executive Vice President, and Chief Financial Officer. “Fresh foods was the biggest driver of the year. With the strong sales in fresh, we benefited from efficiency gains in both labor productivity and significantly lower, what we call, D&D or damage and destroyed or products spoilage.”
According to the report, Costco’s net sales for the quarter increased 12.5 percent, to $52.28 billion from $46.45 billion last year. Net sales for the fiscal year increased 9.3 percent, to $163.22 billion from $149.35 billion last year. Another contributor to this growth was Costco’s e-commerce division.
“Total online grocery grew a very strong rate in Q4, several at 100 percent,” Galanti continued. “Overall, our e-comm sites were [running] relatively smoothly during the quarter despite the dramatic volume increases and we were able to improve...on delivery times throughout the quarter as we adjusted to the ramped-up order volumes.”
To take a deeper dive into the financial report, you can view Costco’s release here and read the call transcript here. As the retail landscape continues to shift, we here at AndNowUKnow will keep you up to date on the latest news.