FRESNO, CA - The sun is rising over a bell pepper hill in the Coachella Valley as West Coast growers Baloian Farms and Belk Farms celebrate their 32nd season together. The two are starting harvest on spring green bell peppers, expecting fresh California bell peppers to make a splash at retail as availability was light throughout the country during the month of March.
“Our supply position for the last month out of Mexico has been challenging,” stated Tim Baloian, CEO. “We had to be very strategic with our harvest in order to keep our customer base serviced. The addition of our Coachella program will make for more stable supplies and provide opportunities for promotions.”
Baloian Farms’ Coachella production window stretches from the beginning of April through the end of June. After that, the company moves north through Bakersfield, Fresno, Stockton, Hollister, and Oxnard. As reported in a press release, the company’s statewide production schedule is the result of a generation’s work to establish continuity of supply for customers.
“Producing year-round supplies of fresh vegetables takes creative engineering and the cultivation of close family collaborations throughout the state. I’m grateful to be working with the best farming families in California,” said Baloian.
The start of California production will also help the company service the increased demand it has experienced from retail for Baloian’s value pepper bags.
“Our retail customers have asked us for something creative in a value pack to offer their customers during these tough times,” said Jeremy Lane, Sales Manager. “Fortunately, we have an extensive bag program already in play to address the value proposition.”
Will this upcoming supply satisfy the West Coast's bell pepper apetite? Only time will tell, so keep checking in with us here at AndNowUKnow.
UNITED STATES - Our industry and our country are in uncharted waters today. While many of those of my generation have experienced and managed through severe dilemmas before, including major product recalls, financial meltdowns, H1N1, Bird Flu, hurricanes, fires, floods, etc.—what we are facing today is unprecedented and will require all of us, especially our industry leaders, to maintain perspective while keeping our industry and our country afloat.
The standard list of items like leadership, team engagement, and thoughtful strategic actions are still in play and must be a part of everything we do and the decisions we make.
But, we must understand and remember from all the crises we’ve encountered before, that how we respond to today’s crises, including the actions we take, must be done with a better understanding of how the ultimate customer—the consumer—will rebound and how they will resume normalcy after this event is over.
Here are some things we are all keeping in mind and should continue to:
- Today’s customers are reeling from information overload with much of that being inaccurate
- They are scared, paranoid, frightened, and isolated
- None of us have ever been “sheltered in place” or deprived of the exceptional benefits of living in a free society and quite frankly doing whatever they please whenever they want to
- Customer’s today are not used to going to a grocery store and not finding most everything they want or need–this is a traumatic change to their world view
Our industry is positioned very well to be part of the solution. Our message is “Food is your friend,” and we provide the best and most healthy food the grocery store. We are a solution–not a problem! As we work through the timeline till this situation is resolved, we should keep providing a solution and maybe even offer them a better balance at the end than we had at the beginning.
Yes, we need our leaders to be more visionary that yesterday. Yes, we must use the exceptional talent of each companies’ teams and, yes, we must make great strategic decisions both now to stay afloat today and tomorrow to grow and expand your company.
But, what else can we do? I believe there are four tenets of life that we can look to here—and you can put them in any order you like or consider them one tenet in itself:
Food – Fun – Family – Faith
The current world order is to stay in place, so how do we help our ultimate customers—the consumer—keep their families sheltered and use food to be engaging and healthful? Fun used to be doing whatever you wanted to do but that has changed for a time. Can we help position healthy foods (our industry) as something to do as a fun family event? I don’t have the answers. But, if I’ve given you something else to think about rather than not having an N95 mask or hand sanitizer and to help you channel your creative energies, then this is a success.
On the last note, which is personal, now is a great time to pray both for our industry and our country and world.
SPARTA, MI - Today’s consumers have more and more choices at the grocer, including the produce department. With the volume increasing for the Evercrisp variety, Riveridge set out to create awareness around the “newer” variety with a mix of marketing, helping to drive consumers to a new favorite apple.
Evercrisp, an apple best known for its cross between Honeycrisp and Fuji, is a relatively new variety on the block with its first modest plantings in 2013. To educate consumers, Riveridge set out to target men and women aged 25-54, with a mix of event sampling, billboard, radio, and influencers.
“Everyone is so busy. To get someone’s attention you have to be where they are; be a part of their day and we set out to achieve that with this mix,” said Trish Taylor, Marketing, Riveridge Produce Marketing.
Fresh off an event, Riveridge team members set up sampling at the Gate River Run in Jacksonville, Florida, billed as the nation’s largest 15K with more than 20,000 participants. There at the expo, where participants often bring the whole family, attendees could try a slice of Evercrisp and take an apple home. The event was the ideal demographic with health-conscious, active people who like to know where their food comes from. On race day, participants were treated to an apple after the race for their refueling needs with many returning to bring friends to show the apple they tried at the expo.
Pandora radio was implemented regionally, both played on the app and on apps for local radio stations. Three ads were created to educate the consumer. The focus of the spots was to highlight the apple is a cross between two beloved varieties, Honeycrisp and Fuji. One spot is a play off a Pure Michigan ad highlighting where the apples are grown (Michigan) and two ads talk about the role of apples as a snack.
The billboard designs are simple to catch the eye of the daily commuter—“Sweet, Crunchy and Evercrisp.” These boards are posted for four weeks in high traffic locations near retail locations.
“The best part of the event weekend was when we encountered the trifecta. Someone saw a billboard and heard a radio spot—and now they were getting to try the apple and love it and tell others,” said Taylor.
Evercrisp outreach will continue throughout the month of March.
SWEDEN - Last week, Lidl Sweden published a statement urging the country’s suppliers to connect with the retailer as it works to navigate COVID-19 concerns. Johan Augustsson, Head of Lidl Sweden, Robert Stekovic, Commercial Director, and Malin Laurén, Purchasing Director, addressed the industry in hopes of filling Lidl’s stores with more fresh produce and products. Through building new partnerships, the company hopes to support the food supply chain as a whole.
“We are in an extreme situation and it is important to both think new and act quickly. For a long time, we have had a great focus on developing the Swedish range, but the corona crisis has meant that we must act at a faster pace than before. I urge all farmers and producers in the country to contact me directly so that we can start a dialogue about possible cooperation,” said Laurén. “We want to help and secure Swedish food production.”
The statement goes on to explain that COVID-19 has placed increased strain on Sweden’s small businesses. To help ease that strain, Lidl is seeking out new collaborations with Sweden-based suppliers as all parties work to maintain a balance in the industry.
“We at Lidl now go out and urge you to contact us, in order to establish new partnerships and suppliers. Of course, we now want to contribute to the long-term, sustainable development of the Swedish food industry and to ensure the availability of food to the Swedish population. We also encourage other grocery retailers to do the same. Now we must work together to secure the future for Sweden's food producers,” the statement noted, according to news source Expressen.
How will this call to action bring new and innovative partnerships, across the buy- and supply-sides, to fruition around the world? No matter the case, we at AndNowUKnow are eager to find out.
SAN FRANCISCO, CA - It seems like GrubMarket is setting its sights on a path to dominating in organics. Today, GrubMarket announced it has acquired Massachusetts-based Boston Organics, an online farm-to-table grocery delivery service. This follows Doorganics in December and Organic Harvest Network in February, making this the third organic acquisition.
“Boston Organics has long been a leader in farm-to-table grocery delivery. We are incredibly excited to welcome Jeff Barry and his team, along with their nearly two decades of grocery delivery experience into the GrubMarket Family,” said Mike Xu, Chief Executive Officer of GrubMarket. “This acquisition marks a significant milestone in our expansion plan as the first East Coast presence for GrubMarket.”
According to a press release, this acquisition will bolster GrubMarket’s nationwide presence as it leans into growth amidst never-before-seen levels of demand for online grocery delivery.
Boston Organics delivers fresh, certified, organic produce and groceries to Boston homes and offices. Its mission is to support organic farms and food and will continue to operate from its headquarters, led by Barry and his current leadership team.
“GrubMarket shares Boston Organics’ passion and commitment for supporting regional and organic farms and producers,” said Boston Organics’ Founder Jeff Barry. “By joining GrubMarket, we are excited to have access to its software expertise, which will allow us to elevate our customer experience in this dynamic grocery delivery market.”
Where will GrubMarket’s reach touch down next? Stay tuned for more updates in the fresh produce and grocery sector with ANUK.
UNITED STATES - Today kicks off the Produce Marketing Association’s (PMA) latest strategy to ensure each facet of our industry has the information it needs in regards to COVID-19. And one thing our industry loves is a roundtable.
At 12:00 p.m. EST, the association launched its weekly Virtual Town Hall Roundtable series. These will take place every Wednesday at the same time, sharing what is learned and looking toward the future.
“The ability to provide updates, discuss challenges in real-time, to share learnings and opportunities, and to explore where we need to focus our efforts as we look toward the future was mutually beneficial to all, but especially to us as we continue to ensure that PMA hears your voice and meets your needs,” PMA said in a message to members.
This morning provided an opportunity to hear from leaders of the USDA and FDA in an opening General Session, featuring members from both branches: Bruce Summers, Administrator for the USDA AMS, and Frank Yiannas, Deputy Commissioner for Food Policy and Response for the FDA.
Roundtables spanned everything from grocery retail and foodservice to trade, labor, and transportation. You can participate in future roundtables by choosing sessions here. PMA did note that you must register separately for the General Session and your choice of Virtual Roundtable.
And the association is going even further to connect the industry to consumer needs and demands, which are constantly in flux as buying behaviors shift from week to week amidst the crisis.
“A little over a week ago, I committed that PMA would be quickly developing consumer campaigns to reassure consumers that fresh fruits and vegetables are available and safe during the COVID-19 global crisis,” Cathy Burns said in a statement, announcing a new consumer-focused campaign.
Accurately dubbed The Joy of Fresh, the program is made up of three components:
- PMA will monitor consumer sentiments to ensure it is addressing rising issues and actively sharing compelling industry stories
- PMA will work with its industry and media partners to amplify how produce and floral can help consumers lead full and vibrant lives
- PMA will provide resources, information, and tools to help each of its members lend their voices to the conversation
In a video release regarding the campaign, which can be seen above, Burns brings PMA Chair of the Board Joe Don Zetzsche, Director of Blooms Floral Shops for H-E-B, and PMA Chief Marketing Officer Lauren Scott to share the details on The Joy of Fresh.
The first wave of The Joy of Fresh resources are available on PMA’s website here, with promises of more to come soon.
As our industry continues to look to solutions one day at a time, AndNowUKnow will bring you the latest.
BRITISH COLUMBIA, CANADA - Collaborations are key to bringing more value to the categories in which they serve as well as to retail partners. Oppy is royalty when it comes to this strategic business model, and this year the company has extended its partnership with Randhawa Farms, Owners of the Perpetual Vegetable Co. brand.
“We are excited to continue our work with Randhawa Farms and their flourishing Perpetual Vegetable Co. brand, which has already made waves in the industry,” said Oppy’s Vice President of Categories, Berries and Greenhouse, Jason Fung. “Oppy understands and appreciates the strength of strategic partnerships as a way of ensuring we always deliver the best possible experience to our customers in our well-rounded greenhouse category and beyond.”
Available exclusively from Oppy under the Perpetual Vegetable Co. brand, the partnership will bring year-round long seedless cucumbers along with sweet bells and mini peppers available early-spring through mid-autumn.
British Columbia-based greenhouse grower, Perpetual Vegetable Co. specializes in high-quality peppers and long English cucumbers that are grown under 76-plus acres of glass in Abbotsford, according to a press release. As we look to 2020, the company looks at the 2019 season as a tell-tale sign of what is to come.
Last year was a success forPerpetual Vegetable Co.'s programs, and the team acknowledges that a recent expansion, adding nearly 22,000 square feet of cold storage with a 600-pallet capacity facility and two new value-added lines, really upped the ante.
“Working with Oppy allows us to focus on our key strengths while utilizing its unique competitive advantages and many specialties,” said Randhawa Farms Business Director Vijay Randhawa. “The key to continued success is working with partners that can not only help you grow but also grow with you, which allows for long-term and impactful development. This is what Oppy offers us, and we look forward to the great work that will result from our continued partnership.”
Randhawa Farms launched its Perpetual Vegetable Co. brand in 2019, and notes a focus on conservation and sustainability emphasized by the brand tagline of “Life grows on.”
COLUMBUS, OH - The food and grocery industry is proving our strength is in our community. As long as we continue to lock arms with our fellow produce providers and buyers, the coronavirus crisis becomes more of a challenge—complete with strategies and solutions—rather than an obstacle. DNO Produce is one of our industry’s supply-side members showcasing what we can accomplish when we lean on our partners.
“As a result of the development of COVID-19, we’re seeing relationships with retailers and communities that we’ve never had before,” Jeremy Taylor, Vice President of Sales and Marketing, shared with me. “DNO Produce has a central location in Columbus to help retailers in the Great Lakes area fill product daily. We’re being extremely flexible and nimble, and it’s proving to be a big help for our retailers."
Like many in the industry, DNO Produce has also faced changes to its supply chain, with flexibility proving to be the company’s most crucial ally.
“Commodity markets are day-to-day, with nearly every item fluctuating in pricing and availability. We’ve been flexible and altered our sourcing from our coastal shippers in order to help our customers and partners move inventory,” Jeremy explained. “Many of our foodservice partners were left without an outlet, so we felt it was our duty as their partner to help them through this time. It’s only right.”
On the consumer-side, DNO Produce is also proving itself to be a crucial partner. The distributor has begun packing new products like bagged potatoes, apples, citrus, soup kits, stew mixes, and kid-friendly bags, which are then delivered to community feeding sites and even directly to consumer homes.
“DNO is more fortunate than most in this crisis, so we wanted to help our communities affected by school shutdowns. For $25, consumers can receive a box of produce delivered to their homes, and we’ll also donate fresh produce to a family in need,” Jeremy told me. “Our associates pack all of the product in our USDA facility and send it out in vans across Central Ohio.”
DNO Produce’s efforts are a further testament to the charitable mindset of those in fresh produce, with its team setting an example that many are sure to follow. As more in the fresh produce industry tread the path DNO Produce is forging, AndNowUKnow will continue to report.
ARLINGTON, VA - They say if you just put one foot in front of the other, soon you’ll reach the place you are headed to. Lidl recently took a definitive step forward, landing itself in Cecil County, Maryland. There, the company has formally opened its new 700,000-square-foot, state-of-the-art regional headquarters and distribution center. Lidl invested more than $100 million in the project, which will create more than 200 new full-time jobs.
“As we work hard to meet the surging needs of our customers during this critical time, we are thrilled to open our newest regional distribution center in Cecil County, Maryland,” said Johannes Fieber, CEO of Lidl US. “The facility will allow us to efficiently deliver our award-winning products to thousands of customers from Maryland to New York and support our expansion across the region. We thank Governor Hogan and local leaders for their tireless support leading up to today.”
Lidl US recently announced that employees enrolled in company insurance plans, including those at the new regional distribution center, will be offered medical benefits covering testing and treatment related to COVID-19 at no cost. According to a press release, Lidl US also provides medical benefits for all full- and part-time employees, regardless of the number of hours they work per week.
“Maryland is proud to support Lidl’s new regional distribution center, which will create 200 new jobs when they are needed the most and enable the company to more efficiently deliver their high-quality products throughout the region at a time when demand is at an all-time high,” said Governor Larry Hogan. “We also commend Lidl’s commitment to providing all employees with health insurance as well as COVID-19 testing and treatment, which is critical to fighting this global pandemic.”
The 700,000-square-foot facility will serve as the backbone of Lidl’s regional store network, quickly supplying products to stores in five states.
So, all of my fellow produce advocates, just keep putting one foot in front of the other and your destination will soon materialize. Until then, keep walking with us here at AndNowUKnow.
RICHMOND, VA - As we continue following the strict stay-at-home orders, retailers and those in the fresh produce industry continue battling on the frontlines to keep shelves stocked and products moving. Recently, foodservice distributor Performance Food Group Company (PFG) announced several new partnerships and corporate actions to strengthen its business during the novel coronavirus pandemic (COVID-19).
“As we all adapt to the COVID-19 pandemic, our company is in a crucial position to keep our country’s food supply chain strong,” said George Holm, Chairman, President, and CEO. “We are proud of the tremendous effort and dedication shown by our talented associates who are working tirelessly to keep people fed during this time. In addition to working with our existing customers, we have formed several new partnerships, brought in new business, and shared many of our associates with organizations that are experiencing labor shortages. PFG is also diligently assessing and managing how we spend our capital so that we are in the best financial position possible. With our new partnerships and the innovation shown by our organization, we believe we can come out of this period as a stronger company.”
According to a press release, PFG has taken several actions to support the customers and communities it serves, to engage its workforce in new ways, and to manage its cost base over the past few weeks. Examples of these activities include:
- Signing agreements with 10 new grocery retail partners to-date and sharing over 1,000 associates to help keep shelves stocked with food
- Distributing groceries to approximately 480 new grocery locations as PFG builds out its distribution capabilities to this channel
- Entering into new partnerships to support on-line ordering for its customers through OpenMenu, Swipeby, and several other third-party delivery operators
- Supporting its restaurant customer base by launching tools to assist the independent channel, advertise which restaurants are open, and help with a transition to higher volume in take-out and delivery
In addition, the company has taken the following measures to protect its long-term financial position:
- Drawing $400 million from its $3.0 billion credit facility, which was put to cash on the company’s balance sheet
- Halting all non-essential capital expenditure activities
- Suspending its share repurchase program; during the fiscal third quarter and through March 23, the company repurchased 315,100 shares for approximately $5 million or a weighted average of $15.80 per share
“The current COVID-19 situation has created a challenging operating environment for our industry and the customers and communities we serve,” Holm continued. “PFG’s decentralized operating model allows quick decisions at the local level, which will continue to serve us well. We will remain nimble to protect our current business and continue to look for new opportunities to grow.”
We at ANUK thank those on the frontlines for their service during this time. For more news like this, keep checking back for the latest.