SANTA PAULA, CA - It has been a year of moving pieces into place, especially within the bounds of Limoneira. The company seems to be continuously strategizing, and in its latest fiscal quarter even more has been put in motion.
“We achieved revenue and earnings growth in the third quarter driven by lemons, avocados, and oranges. Our overall business continues to be affected by the COVID-19 pandemic; however, we are experiencing strong volume in grocery retail as consumer buying patterns are focusing on at-home dining instead of foodservice venues,” said Harold Edwards, President and Chief Executive Officer. “We continue to be a leader in foodservice and export and are well positioned as dining out continues to improve. Our real estate development project, Harvest at Limoneira, has now closed on 354 lots since inception, including 144 new closings this fiscal year. This has exceeded our expectations and we are very pleased with the strong interest in this beautiful development.”
According to a release, highlights for the fiscal year, and the third quarter in particular, include:
- Total net revenue was $53.6 million, compared to total net revenue of $50.9 million in the third quarter of the previous fiscal year
- Agribusiness revenue was $52.4 million, compared to $49.6 million in the third quarter of last fiscal year
- Record fresh lemon volume in Q3 2020 with 2.0 million cartons sold
- Avocado volume increased to 6.1 million pounds in Q3 2020
- Sales of 144 Harvest at Limoneira Lots closed during the first nine months of fiscal 2020
The company continues to expect record lemon volumes in fiscal 2020, as well as having continued a trend of real estate moves.
“We generated $5.3 million of adjusted EBITDA in the third quarter due to strong revenue and focus on expenses. In addition, we recently closed on the sale of a non-strategic property for $6.0 million in the Central Valley of California, strengthening our balance sheet for the fourth quarter of fiscal 2020. Looking forward, we are very excited about our growth opportunities in fiscal 2021 as we have dramatically increased our sales in grocery this year and believe we are very well positioned for foodservice growth as restaurants and bars begin to reopen,” Edwards said.
To see a further breakdown of the fiscal quarter and year up to now, read the full financial release here.
With much still underway as the company continues to make necessary pivots in an unpredictable year, AndNowUKnow will continue to keep our ear to the ground for all the latest.
GRAND RAPIDS, MI - Appointing a new Chief Executive Officer (CEO) is a powerful move, especially in the retail industry. SpartanNash Company has recently invested in such a power move, appointing Tony B. Sarsam as the new President and CEO. Sarsam will assume the role and join the Board of Directors effective September 21. Interim President and CEO Dennis Eidson will continue in his role as Chairman of the Board and will serve as Executive Chairman for a period of thirty days to ensure a smooth transition with Sarsam.
“I am honored and humbled to be selected to lead this incredible organization,” said Sarsam. “I think of SpartanNash as over 100 years young, with a rich history and a promising future. I am looking forward to working with our 19,000 dedicated associates to further strengthen our company and extend our success well into the future.”
Sarsam is an accomplished CEO who has a unique blend of consumer products and supply chain expertise in the food industry, which positions him especially well to lead SpartanNash Company.
In the past, Sarsam served as CEO of Ready Pac Foods, Inc., where his focus on innovation and service transformed that business into a growth engine, delivering a 60 percent revenue increase in less than five years. Earlier in his career, Sarsam enjoyed over 20 years in progressive leadership roles at PepsiCo before joining Nestlé, where he served for three years as President of Nestlé’s Direct Store Delivery Company, a $4.5 billion pizza and ice cream business.
Sarsam most recently served as CEO of Borden Dairy Company, Inc. where he led business growth and positive trends in a challenging industry. He successfully led Borden through its recent restructuring and restored the business to a new foundation for future growth before his departure in July 2020.
Sarsam holds a master’s degree in management from Stanford University and a bachelor’s degree in chemical engineering from Arizona State University.
“SpartanNash’s Board of Directors has conducted an extensive search over the past year, and we are extremely confident we have recruited an exceptional leader to continue the legacy of our company as a trusted provider of grocery products,” said Eidson in a company press release. “Not only does Tony possess the background and expertise to lead SpartanNash in the coming years, his core values and history of visionary thinking and strategic execution are in direct alignment to achieve our vision to be a best-in-class business that feels local, where relationships matter.”
Lead Independent Director Doug Hacker noted, “On behalf of our board, the SpartanNash executive leadership team, and the company’s family of 19,000 associates, we’d like to thank Dennis for his leadership and commitment to the company since he joined SpartanNash in 2003, and particularly these past thirteen months serving in his interim role. The board is confident that we have found an exemplary successor to Dennis in Tony Sarsam and we look forward to a bright future for SpartanNash.”
Congratulations to Tony Sarsam on this exciting appointment!
IRVINE, CA - I’m a sucker for targeted merchandising campaigns. Marketers know exactly how to entice consumers like myself, and I’m not ashamed to admit it. The California Avocado Commission (CAC) has effectively caught the attention of consumers with its latest venture, launching a California avocado merchandise shop to sell branded merchandise online. The shop is designed to satisfy consumers who have asked where to buy such items and to promote the California avocado brand via its aficionados. And take it from me, one glance at this snazzy merchandise will have avocado lovers shopping till they drop.
“The California Avocado Commission team has worn California avocado-branded apparel at festivals and events for years, and we always hear ‘where can I buy a shirt/hat/bag like that?’” said Vice President of Marketing Jan DeLyser. “Now fans will have a convenient online shop where they can purchase merchandise and show off their love of California avocados.”
Shoppers can find the merchandise at the CAC website and will be able to purchase directly from social media platforms like Facebook and Instagram. Some of the merchandise showcases art from CAC’s advertising campaign The best avocados have California in them. Other items for sale feature a variety of designs promoting the brand, such as a T-shirt with artwork of the California flag that use an avocado instead of the State’s bear, California avocado socks, and more. The shop includes other apparel as well as novelty items. Fresh avocados, however, are not among the goods for sale, though the green gold is only a grocery run away.
“The Commission is not in the business of selling avocados, not through traditional channels and not through the online store,” said DeLyser. “This program is all about dynamic and engaging marketing.”
Whether this merch will soon team up with retailers, especially those with fresh fanatics, remains for us to be curious for.
Marketing support for the California avocado merchandise shop begins today, September 14, and continues throughout the California avocado off-season, starting with public relations outreach and an email blast announcing the launch of the shop to nearly 200,000 California avocado newsletter subscribers. A social campaign highlighting the array of merchandise will be complemented by an influencer marketing program involving twenty social influencers, driving momentum and engagement for the shop. Additional support will continue throughout the year, according to a press release.
The 2020 California avocado season is winding down but there still is fruit available for late-season programs. Late summer California avocado marketing has included streaming video, digital advertising, content partner programs, social media programs, an outdoor billboard with graphics that changed from day to night, and a commuter train wrapped with graphics from CAC’s advertising campaign.
“More than 90 percent of this season’s California avocado crop has been harvested,” said DeLyser. “The remaining crop is being shipped mainly in California and may last through Halloween this year.”
Excuse me while I spend all my quarantine savings on avocado gear! For more of the freshest news in produce, stick with us at ANUK.
BENTONVILLE, AR - As we continue to explore new ways and strategies to incorporate more sustainable practices, renewable energy is an avenue that many companies are focusing on, specifically retail giant Walmart. The company recently teamed up with Schneider Electric, a leader in the digital transformation of energy management and automation, to announce a new collaboration that will provide increased access to renewable energy for Walmart’s U.S.-based suppliers, enabling them to lead on climate action.
Walmart aims to add renewable generation capacity to the U.S. grid in an initiative dubbed Project Gigaton. According to the press release, the two powerhouse companies converged on a groundbreaking initiative called the Gigaton PPA (GPPA) Program. The GPPA program is designed to educate Walmart suppliers about renewable energy purchases and accelerate renewable energy adoption by participating suppliers through aggregate power purchase agreements (PPA).
“The Gigaton PPA Program is the kind of innovation-in-action needed to help our suppliers take the next step toward low-carbon emissions, helping to build a more sustainable future for our communities,” said Zach Freeze, Senior Director, Sustainability at Walmart. “Through Schneider Electric’s work with our suppliers, the program aims to democratize access to renewable energy and accelerate its use with our supplier base.”
The program directly supports Walmart’s Project Gigaton, which aims to avoid one gigaton (one billion metric tons) of carbon dioxide from Walmart’s global value chain by 2030. To date, more than 2,300 suppliers from 50 countries are participating in Project Gigaton. Suppliers have reported a cumulative 230 million metric tons of avoided emissions since 2017—more than 20 percent of the goal—through energy, waste, packaging, agriculture, forests, and product use and design.
Some of the challenges to accessing renewable energy experienced by smaller companies include a lack of size needed to approach the market individually, insufficient education on the specific mechanics of renewable energy transactions, and guidance on how to secure renewable energy. The GPPA initiative was designed to help overcome these barriers, making it possible for more companies to learn about energy purchases, access renewable energy, reduce emissions, and increase their ability to contribute toward Project Gigaton. Walmart will serve as the convening champion for the program, inviting suppliers to join.
“It is our honor to work with Walmart on this revolutionary program,” said Steve Wilhite, Senior Vice President, Schneider Electric. “The company is demonstrating significant leadership by increasing access to utility-scale renewable energy opportunities for their suppliers as part of the Project Gigaton ambition. The GPPA program aims to bring a significant amount of new wind and solar to the grid at a time when climate action is most urgent.”
Collaborating with Schneider Electric, Walmart will be utilizing the company’s Energy & Sustainability Services (ESS) to run the GPPA Program, utilizing Schneider Electric’s NEO Network™, a global collaboration platform and community of more than 300 corporate renewable energy purchasers and solution providers. Schneider Electric’s team of leading renewable energy experts will engage participating Walmart suppliers and facilitate a multi-phase education and project selection process to advance supplier progress toward the execution of aggregated renewable energy purchases.
As stated in the release, Walmart has been working with suppliers, NGOs, and others to inspire positive change across global supply chains for more than a decade. In its own operations, Walmart has reportedly set a goal to be 50 percent powered by renewable energy by 2025. Currently, the company powers an estimated 29 percent of its operations with renewable energy.
To learn more about this new collaboration, click here for the full release.
Stay afloat with industry news right here on ANUK.
SILVER SPRING, MD - With a market presence as influential as MOM’s Organic Market, it’s crucial that the retailer be strategic in its expansion moves. MOM’s did not disappoint this week as the grocer quietly announced plans to open a new store in Maryland.
According to Commercial Observer, the property stands at 17,320 square feet, as indicated by a recently signed lease. Bozzuto Development and StonebridgeCarras have entered a joint venture to help facilitate the opening.
The news source went on to note that the Silver Spring, Maryland, market is an up-and-coming hotspot for trendy, health-forward, and youthful activity, making the new store’s location a boon for business. The project is currently set to break ground in the beginning of 2021.
Is this a sign that MOM’s Organic Market will soon be entering more markets? Only time will tell, so follow along with us here at AndNowUKnow.
MURRIETA, CA - A new veteran has joined the fold over at West Pak Avocado as the company expands its logistics program. Ruben Barahona will be leading the avocado grower’s operation in a new position as the Director of Logistics.
“I am very excited to become part of the West Pak Avocado team,” said Barahona. “I am eager to learn quickly about the avocado business to start applying my experience in logistics and transportation in order to contribute to the company's fast growth.”
According to the press release, Barahona brings over two decades of experience to the Murrieta, California-based grower, packer, and distributor of premium avocados. He has strong global knowledge in transportation, logistics, and supply chain management with a proven track record in his career. Barahona’s success is attributed to being people-oriented, organized, and focused, with insight for streamlining processes and delivering cost reductions while enhancing customer service within complex perishable supply chain environments.
As the new Director of Logistics, Barahona will work out of the Murrieta, California, facility, and will report directly to West Pak Avocado CEO Mario Pacheco.
“We are extremely confident that Ruben’s strong skills and qualifications, plus his high-level professionalism and people focus will be an excellent match for his appointed position and a strong asset to our management team,” stated Pacheco.
The new Director of Logistics comes to West Pak Avocado from his previous position at Chiquita Brands International as Fruit Allocation Senior Manager for North America in Florida. He worked for the brand for 20-plus years as the Transportation Manager in the United States, Panama, and Honduras. His experience also includes Supply Chain Manager for GWF; Chiquita Brands’ global logistics subsidiary in North Carolina; and Sourcing and Allocation Manager for North America, Europe, and Costa Rica.
Barahona is originally from Honduras, which is where he started his career in the produce industry. He holds a bachelor’s degree in Electrical and Electronics Engineering from West Coast University and a master’s in Business Administration from Universidad del Istmo.
Congratulations to Ruben Barahona on this next step in his career!
SANDPOINT, ID - Plant-based is all the rage these days, meaning that the fresh fruit and vegetable industry is continuously making its way to the center of the plate. Working to ensure that this growth never stops is brand behemoth Litehouse, recently announcing that it acquired Veggiecraft Farms. Known for bringing plant-based products to the masses, Veggiecraft Farms specializes in providing vegetable-based versions of beloved foods, without sacrificing taste or texture.
“The acquisition of Veggiecraft Farms is the latest development in our long-term strategy to focus on category expansion and offer consumers convenient, memorable home cooking experiences,” said Kelly Prior, CEO and President of Litehouse. “We are starting to see a significant increase in consumer demand for plant-based offerings and this acquisition will provide a foundation for us to develop a portfolio of products with the plant-based consumer in mind. Outside of this acquisition, we will continue to put an increased focus on building out our plant-based offerings across multiple areas of the grocery store.”
Recognized as a leader in the refrigerated section of the produce and deli departments, Litehouse has made aggressive moves over the last year to expand its footprint into different sections of the grocery store. The company launched Green Garden Freeze Dried Herbs in the spice aisle and acquired Sky Valley and Organicville brands, offering shelf-stable sauces and condiments in center-store.
According to a press release, Litehouse continues to expand its plant-based portfolio as mainstream consumers are increasingly seeking delicious and nutritious food options. NPD recently reported that plant-based food sales topped $3.3 billion over the past year and are outpacing dollar sales of all retail foods by 10 times.
Plant-based trends aren’t going anywhere, folks, so stick with us as we continue to report on the industry’s biggest power moves.
BOSTON, MA - As consumers continue to cook more at home, it’s not surprising to hear that some have hit a bit of a wall when it comes to answering the question, “What’s for dinner?” Kroger is aiming to take the guesswork out of the meal planning process with its latest partnership with The Dinner Daily.
“During the COVID crisis, we’ve seen an unprecedented surge in online ordering and delivery as a convenient and safe way for families to get their weekly groceries,” said Laurin Mills, Founder of the award-winning personalized meal planning service for both grocers and consumers. “Our new integration with Kroger means our members in 24 states can now easily order their groceries directly from their Dinner Daily shopping list in just a few seconds, saving time and making the shopping experience almost effortless, which benefits both the consumer and the grocer.”
The Dinner Daily provides a flexible and personalized online meal planning service. Now, coupled with Kroger, online ordering and delivery will be a snap for Dinner Daily members who shop at Kroger, Fry’s Food, Fred Meyer, King Soopers, Pick n Save, and Ralph’s stores. According to the press release, Dinner Daily members receive weekly meal plans that both fit their personal food and dietary preferences that maximize the weekly specials at their selected grocery store.
What makes this service convenient is the customizability; Dinner Daily members receive an organized, editable shopping list that makes shopping a breeze and is now fully integrated with Kroger’s Pickup and Delivery online ordering. A single click will send selected items to their Kroger shopping cart for ordering and scheduling delivery or pickup.
“We know from our members that the hardest part of grocery shopping is meal planning and figuring out what to buy at their grocery store each week. The number two pain point is finding time to get to the store. Now, with our delivery integration with Kroger, we are solving the two biggest challenges of grocery shopping for our Kroger members,” said Mills. “Having a plan that is customized just for you can take all the stress out of making dinners at home. With The Dinner Daily, your plan for a great dinner is ready.”
Recipes used in Dinner Daily menus are curated by the Dinner Daily team to be easy and quick to prepare, healthy, and delicious with a focus on fresh, healthy ingredients—all ready to be made in under 35 minutes or less.
Will we see this convenient service spread to more partnerships in the future? Only time, and ANUK, will tell.
UKRAINE - It pains me to bring more news of criminal activity surrounding our precious fresh produce this week. With officials intercepting a fruit shipment at the Odesa port in Ukraine, this drug bust marks the country’s biggest in 2020.
According to the news source Kyiv Post, nearly 112 kilograms of cocaine were discovered hidden within a freight container full of bananas from Ecuador. Ukraine’s State Border Guard Service reported that 100 packages of the drug were uncovered, amounting to the cumulative value of $17 million.
The news source went on to note that this is at least the third time in 2020 that cocaine has been discovered at the Odesa port hidden within a shipment of bananas arriving from South America.
As always, we at AndNowUKnow extend our deepest gratitude to the border officials who continue to protect our fresh fruits and vegetables.
SACRAMENTO, CA - As a staple in fridges across the country, leafy greens deserve the utmost care along the supply chain. With this in mind, the Leafy Greens Marketing Agreement (LGMA) has worked tirelessly to bring the safety of leafy greens to the forefront. Now furthering this mission, LGMA is launching an action list of 10 things being done to keep leafy greens safe.
“As we approach the fall transition when patterns have emerged in recent years, we’re all taking additional precautions to prevent potential problems,” Dan Sutton, General Manager at Pismo-Oceano Vegetable Exchange and Chairman of the LGMA, said in a blog post. “As farmers, we do everything possible to make sure our crops are farmed safely, and we’re working together with government, food safety experts, and the produce industry to keep people safe.”
The 10 implementations LGMA will focus on are as follows:
- LGMA food safety audits are ongoing during COVID-19
- The California LGMA is “heavying up” audits during the season transition
- LGMA requires 100 percent compliance
- 2019 irrigation water standards are being implemented and enforced
- New food safety updates approved by LGMA Board in August 2020
- State agencies are monitoring compost used on leafy greens farms
- Government inspectors are working to ensure farms are in compliance with the Produce Safety Rule
- New research projects are underway to learn more about potential risks involved in farming leafy greens
- The LGMA verifies with every audit that a traceability system is in place at all member companies
- The LGMA supports a Leafy Greens Traceability Pilot to improve traceback through the supply chain
“More improvements are coming in the near future,” Sutton continued. “Most importantly, we’re looking closely at the LGMA’s required food safety practices for the proximity of animals to leafy greens farms in light of findings from FDA investigations into past outbreaks. We have already increased buffer zones required between animal operations and our farms. Additional changes are being considered now by a special Adjacent Lands subcommittee of the LGMA.”
For more details pertaining to these 10 implementations, check out LGMA’s official blog post here.
Fresh produce protection is always at the forefront of our minds, so keep a tab open for ANUK to read up on the latest.