HOUSTON, TX - Our industry is doing all that it can to meet the needs of the American people. Whether through investments in its workforce or key partnerships to keep the supply chain moving, retailers and suppliers alike are working overtime. Industry titans like Sysco, Kroger, and US Foods announced a partnership of their own, agreeing to provide temporary work opportunities for Sysco and US Foods' associates at certain Kroger distribution centers.
"Kroger's top priority continues to be uplifting our associates and serving our communities, whether that's by ensuring customers always can find food and products on our shelves or by providing a nearly immediate job opportunity to help an unemployed person to begin working again," said Tim Massa, Kroger's Senior Vice President and Chief People Officer. "During this time of uncertainty, Kroger is committed to remaining a constant. We have a responsibility to our associates, customers, and communities, and we will continue to be here…for any need."
Under this agreement, a press release noted, Sysco associates in the United States who have been temporarily furloughed will have the opportunity to work at Kroger locations for 30 days, or more, as agreed upon by both companies.
“During these unprecedented times, we are pleased to partner with Kroger, as both of our companies work to respond in an agile manner to meet the rapidly evolving needs of our associates and our communities,” said Kevin Hourican, President and Chief Executive Officer of Sysco. “This agreement will benefit many of Sysco’s associates by creating good work opportunities with a respected company, while at the same time helping to alleviate strain in the food supply chain due to a surge in demand at retail stores.”
Kroger is not only partnering with Sysco and US Foods, but working to hire an additional 20,000 individuals from partners like McLane Foodservice, Shamrocks Food, Sodexo, SodexoMAGIC, Thunderdome Restaurant Group, Frisch's, and Marriott International.
We here at AndNowUKnow commend Kroger, Sysco, US Foods, and many more for their work during this time.
INDIANAPOLIS, IN - You may think that The Produce Moms® Founder Lori Taylor had her hands full with just her fresh produce communications platform, but you would be missing a few essential parts to that storyline. As the impact of COVID-19 has set into all our communities, we have experienced the shift in engagement and business not only on a group level but on an individual level as well—including Lori, who now takes up the reins as a 6th grade and 4th grade homeschool educator for her children due to concerns in the community. Her plate has runneth over—in good ways and challenging ways. Lori took a minute from the craziness of the day to talk shop with us, as a fresh produce advocate, a mother, and a business owner on how the landscape of fresh produce is changing for her in this Q&A.
Jordan Okumura: How has today's health crisis impacted the role that you see yourself playing in increasing fresh produce consumption?
Lori Taylor: Now more than ever, retailers are compelled to find ways to keep themselves and consumers healthy–fruits and vegetables are at the top of that list of solutions! We know there has been a spike in produce sales as a result of this. Inbound organic traffic to content platforms focused on fresh produce and wellness will continue to spike as well. The Produce Moms recorded our all-time record of unique weekly visitors to our website the week of March 15, and we are on pace to beat last week’s record this week, the week of March 22.
As a media and education brand that’s fully-focused on fresh produce, The Produce Moms has a responsibility to serve as a conduit of information to consumers, retailers, and operators in the supply chain.
JO: From your seat in the trade, how are consumers’ food consumption behaviors changing?
LT: Because of COVID-19, consumers are grocery shopping and cooking at home in a way that our industry has never before experienced—and a catalyst for how we will communicate going forward. You will see schools start to implement online formats as part of standard operating procedures, and grocery stores and foodservice making significant improvements in their direct-to-consumer distribution and communication. In addition to recipe inspiration, consumers and supply chain stakeholders need to educate folks on how to select fresh produce, how to store it at home, and how to prep it. Fact-based education earns consumer trust, and The Produce Moms has been providing that for the past decade and will continue to do so even more. Much of this education has been done through collaboration with the thought leadership and stakeholders from within our industry. Our blog and podcast are great examples of the evolution of our platform as an educational tool for consumers and a springboard for the industry.
JO: We are all consumers first, then fresh produce industry trade members—if not both simultaneously. How does a unique, digital, online platform help cut through the noise and bring more value to both the trade and the consumer?
LT: The value of a unique digital platform exists and elevates every day, but it’s never been more valuable than right now! Many of our modes of communication and connection have been halted as a response to COVID-19 including trade and consumer-facing events and dining out is diminishing.
Now is the time for brands to lean in to direct-to-consumer digital marketing. COVID-19 has provided a unique opportunity that we have never seen before in our lifetimes to capture the end consumer’s attention, loyalty, and trust. Whether the digital conversation flows from B2B or B2C, the time is now to get on board.
JO: How do you see online and digital platforms creating more dialogue between the buy-side and the supply-side?
LT: It’s an exchange of expertise and understanding. Digital platforms foster two-way communication. Brands that have invested in building consumer databases, trade-facing platforms, and ongoing digital content are at an advantage right now. The adage “It’s never too late to start!” certainly applies here as well.
JO: How can we elevate the trade conversation around current and future challenges like the ones we are experiencing today?
LT: A lot of our commodities are best understood by chefs, not home cooks. As foodservice and retail remain in flux, what measures are in place to support growers with commodities that are more in demand at foodservice? How are we helping these growers place product at retail, and most importantly, how are we creating that consumer excitement and understanding of the products? I believe once again the answer is digital content creation plus communications. The produce industry has always been the providers of the world’s healthiest and most flavorful foods. Now, we are the providers of the most important and highest part of consumer’s day: we can bring your family joy, nourishment, and fun—just through mealtimes.
There is no time like the present to engage in the conversation at hand in new and refreshing ways. And as we know, we are all in this together.
CARLISLE, PA - On a daily basis, new reports come to light surrounding the COVID-19 virus, prompting industry operators to come together and collaborate to find solutions to common supply chain challenges. The GIANT Company, a popular omni-channel grocer, is doing its part to support others throughout this adverse situation, and the company’s President recently released a statement detailing GIANT’s actions.
“We are in constant contact with our local and national supplier partners—the farmers, bakers, snack manufacturers, packaged-goods producers, and many other businesses, both large and small, that provide the goods we sell,” said Nicholas Bertram, President. “They stand with us in our commitment to service. As essential businesses, they will continue growing produce, supplying meat and fish, and stocking our shelves with necessary food and nonfood items, such as cleaning products and paper goods.”
As reported in The Philadelphia Inquirer, Bertram added in his statement that the grocer’s partners can rest assured as GIANT works around the clock to keep stores stocked with product. The company President also noted, however, that the success of these grocery chains also relies on shoppers.
“As grocers continue to do their part, as key products return to our shelves, we turn to our customers to help us by asking all to limit their purchases to what they truly need right now,” Bertram continued. “Some Americans have been stockpiling goods such as toilet paper, frozen food, and canned goods. Keeping a small stash of shelf-stable products and paper goods at home is always something we recommend, but at this time, it’s turned into something more: panic-buying.”
Bertram places an emphasis on the importance of working together during this time to ensure the safety and well-being of all, recognizing key entities that have helped maintain our supply chain thus far.
“The need of food banks like Philabundance has never been greater or more real, as they work to ensure the most vulnerable members of our communities have access to food—one less thing for them to worry about in this period of uncertainty,” he concluded.
It is essential statements like this that keep our industry inspired to work through this challenge and come out stronger on the other side. Visit the news source linked above to read Bertram’s statement in full.
EDINBURG, TX - Retailers have been working hard to keep shelves stocked with fruits and vegetables to keep up with high demands. One of the more popular produce items in demand right now is the onion due to its hardiness and long shelf-life. I tapped onion experts at Little Bear Produce to gauge how the company is responding to the high onion demand while staying on top of its other commodities being harvested.
“As of right now, we’re probably about 80 percent through our greens crop and our cabbage crop. For our celery, we’re about 90 percent through, and we’re just getting started with our Texas onions,” Trent Bishop, Vice President of Sales, told me. “Then, we’ll start on both our Texas watermelon and honeydews around the first week of May.”
Trent touted a very cooperative Mother Nature this season, who ushered in a nice late winter and early spring. The warmer temperatures down in Texas have resulted in the grower pushing its celery out a little bit earlier in order to harvest the crop before the weather gets too hot. The weather has also been conducive for Little Bear’s greens, cabbages, melons, and onions.
“We had one cold snap about three weeks ago that just hovered right at freezing for a few hours, and we were afraid it was going to nip our melons,” Trent continued, “but we were able to come out of it with no problem.”
Little Bear Produce’s proprietary HoneySweet onions are grown in three different countries and three different states to bring that year-round mild sweetness to retailers and consumers. With the quality of the company’s products receiving high demand, Trent further stated the company is also open to co-branding with its retail partners.
And as consumers buy more produce during this time, I asked Trent what his thoughts were on the current market.
“I think with the change in everybody's eating and buying habits, this trend of healthy produce consumption is going to go be here for a while. I believe a lot of people are going to continue to eat based on the habits we're forming right now,” Trent said. “I can see retail sales numbers being above average for the next quarter or two, based on current trends.”
AndNowUKnow will continue to report on the latest updates in the fresh veg and fruit industry.
PHARR, TX - I am sad to share some unsettling news with you this afternoon as yet another shipment of fresh produce has been soiled by the illegal actions of a drug distributor. In this round of drug busting, officials discovered a massive amount of marijuana hidden amongst a shipment of innocent bananas.
The U.S. Customs and Border Protection as well as the Office of Field Operations converged at the Pharr International Bridge where roughly 4,616 pounds of marijuana were discovered. Dispersed amongst many banana boxes, this shipment was arriving from Mexico when officers encountered the truck.
In a secondary inspection, 200 packages of the illicit substance were removed from the bananas, totaling at an estimated value of $923,290. Although this case is still under investigation according to 4ValleyCentral, the narcotics and the trailer carrying them have been seized.
As we all work to protect our beloved fresh produce, AndNowUKnow will continue bringing you the latest industry news.
SALINAS, CA - During this time, it is difficult to get messages across to partners, customers, and consumers. However, companies like TMD are here to help. TMD Creative and TMD Technology Solutions have recently announced it will be offering no-cost consulting services for any company in the fresh food and agricultural realm.
“This was out of a desire to have and maintain healthy and competent staff, clients, and business partners, without which we would not be able to accomplish our mission,” said Nicholas Pasculli, President and CEO.
As a result of COVID-19, TMD instituted a number of new procedures for the health of its staff and clients.
On Monday, March 16, 2020, for its employees’ safety and in anticipation of the “Shelter In Place” orders that subsequently went into effect in Monterey, Santa Cruz, and San Benito Counties—and 24 hours later, statewide—TMD Creative asked its non-management employees to work from home, implementing a preexisting contingency plan to work virtually, at home, and limit access to TMD’s offices to the public.
“We want everyone who is interested to reach out to us and allow us to help them stay connected to their team and clients during this unprecedented time,” said Pasculli. “That means our management and staff are available by phone, video conferencing, and electronic mail to provide advice and know-how to help company leaders remain connected to their team. Creating a caring community with your team is so important and simply put, it is the right thing to do.”
Karen Brux, Managing Director of the Chilean Fresh Fruit Association, offered glowing reviews of TMD’s services.
“I was happy to use TMD as a resource to discuss the current state of the industry,” Brux commented in the statement. “It was helpful to gain their marketing perspective during this turbulent time we are all navigating.”
TMD Creative and TMD Technology Solutions have been designated an essential business by the County of Monterey because both provide essential services to the government, media, healthcare, agricultural, and other essential industries which remain fully operational during this time.
“Every employee is properly connected to our office and their desktop computer, while able to work safely from home and able to be with their families during this trying time,” said Sam Spadoni, Managing Director.
In addition to offering free consulting services, TMD is also happy to advise, train, or troubleshoot issues with setting up or participating in virtual meetings. The company has experience working in Zoom, GoToMeeting, Skype, and Google Hangouts.
AndNowUKnow will continue to report on developments in the industry.
UNITED STATES - The produce industry has felt the impact of the coronavirus (COVID-19) all throughout the supply chain. With government restrictions implemented, workers in the agricultural field are facing a roadblock to bring fresh produce to stores. Secretary Mike Pompeo, Secretary Sonny Perdue, and others on Capitol Hill have acknowledged the importance produce plays in maintaining a healthy lifestyle, and has helped increase the process of H-2A visa holders and H-2B employees through consulates around the world.
“United Fresh members play an essential role in ensuring the safety of the nation and the world’s food security,” Tom Stenzel, President and CEO of United Fresh, stated in a press release. “We are grateful for the administration’s recognition of our part in keeping food moving from farm to table. We will continue to monitor the implementation and application of these revised regulations and ensure that the fresh fruit and vegetable industry has access to the workers that keep our food economy going during these uncertain times.”
United Fresh noted that the U.S. Department of Agriculture, on behalf of the federal government, released updated guidance for both workers and employers who utilize the H-2A and H-2B visa programs. According to a press release, this is a direct result of United Fresh’s actions to ensure that all foreign workers in agriculture are recognized as vital and essential to our nation’s food supply.
Western Growers’ President and CEO Dave Puglia echoes Stenzel’s sentiments.
“Western Growers applauds Secretary Pompeo and the professionals of the U.S. State Department for taking a practical approach to meeting the critical workforce needs of American farmers while protecting the health and safety of State Department personnel,” Puglia said in a statement. “The steps taken by Secretary Pompeo eases the flow of guest workers at a time when our farmers are redoubling their efforts to provide our nation with safe, healthy, abundant, and affordable food. We are grateful to Secretary Pompeo, Secretary Perdue, and all those in the Administration who listened to the needs of the agriculture community in the midst of our present crisis, and acted swiftly to implement this common-sense solution.”
Richard Owen, Vice President of Global Membership and Engagement for Produce Marketing Association, also announced his support of the recent change.
“The Produce Marketing Association is pleased to see that yesterday the State Department took additional steps to increase processing of H-2 visa holders through consulates around the world,” Owen commented in a statement. “With the expansion of interview waiver eligibility, the majority of H-2 processing can continue. This decision will ensure the flow of labor necessary for the produce industry to continue to provide fresh and healthy products to consumers.”
Details of the announcement by the USDA on behalf of the federal government including prioritization for agricultural workers attempting to enter the United States under an H-2A or H-2B visa can be found here in a Q&A and on the USDA website.
For the latest updates in the fresh produce industry, stay tuned with AndNowUKnow.
Produce Marketing Association United Fresh Produce Association
NEW YORK - Fairway Market has announced the winning bids for six of its Fairway stores in New York, as well as for a couple of stores in New Jersey. Village Supermarket, a Wakefern member, won five New York stores while Key Food’s Seven Seas Georgetowne won the sixth location. Amazon was a contender for four of those stores, and it looks like the e-tailer was able to snap up two real estate leases. The total sale amounted to $82.5 million.
“We are pleased with the outcome of the auction and are grateful for our dedicated and hard-working employees, suppliers, and distributors during this process, which has taken place in these unprecedented times,” said Abel Porter, Chief Executive Officer at Fairway Market. “Serving our community has always been our top priority and we remain committed to providing quality items and a safe shopping environment for our customers and our employees during this global health crisis.”
According to a press release, Village's winning bid includes four of Fairway’s Manhattan stores as well as a production and distribution center for a purchase price of approximately $76 million. Seven Seas’ winning bid is for the Georgetowne store in Brooklyn for a purchase price of approximately $5 million. Amazon’s winning bid is for leases in Paramus and Woodland Park, New Jersey, for a purchase price of $1.5 million.
Fairway Market continues to serve its communities by operating all of its stores, including stores not sold during the Court-supervised auction, and intends to do so for the foreseeable future to accommodate the current public need for its products.
Stay on top of the latest retail news with AndNowUKnow.
WEST COAST, U.S. - A call to action has been heard. While many industries and communities around the world are upside down, the fresh produce industry is rallying to help ensure retail partners’ shelves are as stocked as possible. One of those companies bringing support to this essential goal is the FreshSource team, an industry advocate that has temporarily switched up its offerings to assist its retail partners and the industry at large.
“This is our lifeblood; if we don’t get it out there, the bottleneck only gets worse,” Robert Thompson, Founder and CEO, tells me. In the midst of the emptying shelves and panic-buying, he went to vendors and got approval to spare employees to assist retail partners in need.
You might ask what this temporary switch-up entails. I certainly did.
“Anything they need,” Robert answers. “We got calls from executives at several major retailers, and I sent out a message to the team about how they need us. We told those retailers we will give you our team and just help. We are stacking potatoes, bananas, providing additional hands wherever we can because you can’t get product off the truck and onto shelves fast enough.”
Since Monday, March 16, FreshSource has had 34 merchandisers going to as many stores as they can hit a day to assist anyone from Albertsons/Safeway Co, to Sprouts, Save Mart, Raley’s, and Smart & Final, to name a few. Literally hundreds of locations.
“I’ve gotten emails from leadership all over thanking me and our team,” he says. But Robert also notes that he has mentioned to the retailers that who they should really thank are the principals that contract FreshSource's services. “They are saying ‘Yes, don’t worry about focusing on my product right now, help these stores.’ In produce, these are the kind of people we see. People who understand what kind of an impact this makes.”
Here are just a few of those principals that have made this possible:
- Taylor Farms / Earthbound Farm
- Bako Sweet
- Marzetti Dressing
- Veg Fresh / Good Life Organics
- Little Potato Company
- Pete's
- North Shore Living
- Ocean Mist Farms
- Bland Farms
- Duda Farms
- Sun Pacific
The difference is incredibly vast. While the product is flying off the shelves as soon as it can be stocked, Robert says he is receiving gratitude and positive feedback from all over the several states he and his team serve.
Director of Retail, Northern California, Jon Perez, has been one of those working in the stores supporting local retailers.
“As steps to secure against the spread of COVID-19 were rolled out, I had serious issues with my team being out in the field, merchandising stores as the numbers continued to rise of reported cases. I was frustrated that I could not guarantee the safety of my team, and more so the safety of my family. These feelings began to change on March 16, when I started to see how busy the stores were, along with an overall feeling of fear and anxiety from customers,” Jon shared of his experience.
Jon said customers have been coming up to him and those on his merchandising team to thank them for providing an essential service despite the risk of possible exposure to the COVID-19 virus.
“When I come across firefighters, nurses, and paramedics, I go the extra mile to make sure they have the freshest product and all the items they need. So, it came as a big shock when a Safeway produce clerk and myself were thanked by a Dublin County firefighter who said we were the ‘true’ heroes,” he reflected. “As a part of FreshSource, I have spearheaded many emergency relief efforts, such as the recent Napa, California, wildfires where I drove in fire-ravaged neighborhoods that looked more like war zones than the once prosperous communities of days before. It is a privilege to help people who are not as fortunate during this pandemic and, most of all, it is extremely humbling to provide any sense of relief or normalcy for people during these uncertain times.”
Robert emphasizes that the team is taking every precaution for safety, wearing face guards, gloves, and carrying hand-sanitizers with them to protect themselves, the retailers, and, of course, their customers.
“Traditionally, we are defined as brokers, but our model emphasizes merchandising and maximizing partnership, and the adversity of the COVID-19 crisis has shown us and who we work with what that means,” Robert imparts. “I can’t thank them and my team and our principals enough.”
As the proverb goes, a flower that blooms in adversity is the most beautiful, and this is our industry to its core. May we continue to rise and answer the call.
WASHINGTON, DC - The U.S. Department of Agriculture (USDA) has filed an administrative complaint against Enson Group, based in Ohio, doing business as Eternal Food Service, as part of its efforts to enforce the Perishable Agricultural Commodities Act (PACA) and ensure fair trading practices within the U.S. produce industry. Eternal Food Service allegedly failed to make payment promptly to 12 produce sellers in the amount of $707,592 from December 2018 through April 2019. With this filing, the USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
Direct from the USDA Agricultural Marketing Service:
Enson Group LLC will have an opportunity to request a hearing. Should the USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry as a licensee for three years, or two years with the posting of a USDA-approved surety bond. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for two years, or one year with the posting of a USDA-approved surety bond.
The PACA Division, which is a part of AMS’ Fair Trade Practices Program, regulates fair trading practices of produce businesses that are operating subject to the PACA, including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.
In the past three years, the USDA resolved approximately 3,500 PACA claims involving more than $58 million. PACA staff also assisted more than 7,800 callers with issues valued at approximately $148 million. These are just two examples of how the USDA continues to support the fruit and vegetable industry.
To read the USDA's press release in its entirety, click here.