RIO RICO, AZ - For me, one of the essential one-two punches in fresh produce is a quality supply chain backed by a vibrant and eye-catching packaging program that can deliver both value and excellence. Not so much to ask right?
SunFed® and its Perfect Produce® program is one operation hitting on all fronts as the company looks to transition its growing regions and bring more benefits to retailers. But, enough from this writer, I checked in with Josh Acuña, National Account Sales for the company, to discuss SunFed's offerings and advantages, even as we face a tight market on Mexican veg.
“We are currently growing in the western states of Jalisco, Sinaloa, and in Sonora. Our team is seeing production numbers slowly decrease in the south and, in Sonora, we are transitioning from the Guaymas area into multiple areas in and around Hermosillo,” Josh shares with me. “Under normal circumstances, our volumes would be much greater at this point in the season. But our circumstances have been anything but normal this year. Weather events have been a regular occurrence and have not allowed for much consistency in supply patterns.”
In order to mitigate the interference of Mother Nature, SunFed partners closely with retailers to address urgency in the market and share the most up-to-date information that can best inform decisions all around.
“At the moment, we are receiving SunFed hothouse and organic green bells as well as hothouse colored peppers, hothouse and organic eggplant, hothouse seedless English cucumbers, and conventional and organic yellow and zucchini squash as well as conventional gray squash. When it comes to hothouse and organic slicer cucumbers, supplies have tightened up extremely and we are experiencing heightened demand,” Josh says. “We will see most of our Perfect Produce out of Sonora wind down in May, but we will continue with Perfect Cucumbers out of Sonora through the month of June.”
Josh also notes that normally, SunFed would be approaching the peak of its Sonoran production, but because of back-to-back nights with freezing temperatures in mid-February, this will be pushed back into late April. He adds that, even then, the team is expecting to see a volume reduction of at least 30 percent.
“While supplies express much volatility during a time of heightened concern in the market, we try to remain as a constant and reliable beacon for our partners,” Josh tells me.
SunFed offers a variety of creative and eye-catching packaging and display options that can be customized to a customer’s particular program of choice to complement the shelf-life extending modified atmosphere bags in each case of SunFed Perfect Produce. The company has SunFed Perfect Produce flowing through both Texas and Arizona shipping points, but the majority at this time is moving through Rio Rico in Southern Arizona.
“We will see a shift to all products shipping out of Texas as we transition out of Western Mexico and into Central Mexico in the latter part of June,” Josh wraps up.
With the dynamic market and constant change keeping all facets of the industry on its toes, it is great to know that supplier partners can help the buy-side weather the storm.
SEATTLE, WA - Amazon is reportedly looking to continue its bid into grocery's brick-and-mortar market. It wasn’t too long ago the company dominated headlines with the unveiling of its cashierless grocery store, its first grocery concept utilizing advanced technology to streamline consumers’ shopping experience without the need of cashiers. One has to wonder if expansions of the format are officially on the table, as news hits of the e-tailer eyeing four Fairway Market stores in New York and New Jersey.
According to the New York Post (NYP), the Jeff Bezos-backed e-tailer is bidding on four of the 14 stores owned by Fairway Market, which previously announced bankruptcy. The auction for the sale started off this past Monday, with negotiations held online and via phone. The stores of interest include one in Pelham, New York; one in Brooklyn, New York; one in Woodland Park, New Jersey; and one in Paramus, New Jersey.
This is the most recent interest in Fairway's assets, with ShopRite's Village Super Market having already made a bid for both stores and a facility, as did Bogopa Enterprises. While both qualifying bids were over $70 million, the news source did not disclose how much Amazon might have bid for the locations on the block.
Amazon is remaining tight-lipped on future plans, however. Although with the popularity of its Amazon Go convenience stores rising, there is the possibility that the e-tailer could be expanding in the East.
For more retail and e-tail news, keep reading AndNowUKnow.
HOUSTON, TX - During this time of adversity in the foodservice space, operators are stepping up to the challenge by creating new opportunities for support. One of the leading global foodservice distribution companies, Sysco, recently announced a business and financial strategy in response to changes in the foodservice industry due to the impact of the coronavirus (COVID-19).
“Sysco is operating from a position of financial strength and will weather this storm. We continue to prioritize the health and wellbeing of our associates, customers, and communities around the world,” said Kevin Hourican, President and Chief Executive Officer. “In addition to ensuring the safe delivery of food and related products, we are taking decisive actions to manage our costs, capital spend, and working capital to maintain a positive free cash flow position.”
Sysco’s strong balance sheet provides financial flexibility for the company to navigate current challenges in the “food-away-from-home” market resulting from the spread of COVID-19 and subsequent actions taken across the country to increase social distancing.
According to a press release, the company has cash on hand of approximately $2 billion as of March 20, 2020, including a recent $1.5 billion withdrawal under its revolving credit facility. Importantly, Sysco has no debt maturities for the next six months and is working with its banking partners to explore opportunities to raise additional funds and further strengthen its liquidity.
The company is taking aggressive action to reduce variable expenses, aligning inventory to current sales trends, reducing capital expenditures to only urgent projects, and tightly managing receivables.
“As the largest foodservice distribution company in the industry, we play a significant role in supporting the food supply chain. Due to the significant impact on the food-away-from-home business, we are pivoting our business to better support the surge in demand that is being experienced in the retail grocery store setting,” Hourican continued. “We are establishing new customer relationships with retail grocers to provide them with logistics services and much needed product. We are also advocating for and supporting our customers, who are essential to our future service. I am proud of our associates for their commitment to safety and the work they are doing to serve an essential industry. I am confident Sysco will emerge a stronger company, even more focused on being our customers’ most trusted and valued business partner.”
In addition to efforts to reduce costs, the company is leveraging its supply chain expertise to provide new services to the retail grocery sector. This new business will help balance some of the declines in the food-away-from-home segment and also positions Sysco for growth opportunities after the COVID-19 concern subsides.
Examples of growth initiatives that are being implemented include:
- Providing logistics services to retail grocery customers;
- Becoming a supplier of product to retail grocery customers;
- Enabling small restaurants to stand up home delivery operations and online order pick-up service; and
- Distributing cleaning supplies to keep kitchens safe and virus free.
Sysco noted that it is supportive of the National Restaurant Association (NRA) in its efforts to seek relief for America’s foodservice industry. The NRA’s proposed policy changes include the establishment of a $145 billion recovery fund for the foodservice industry to provide immediate liquidity and expanded access to federal small business loans, among others. The press release also shared that Sysco does not wish to receive any financial support through this relief package. The company’s focus is to support the small business owners it serves.
Sysco has also determined to withdraw its FY18-FY20 three-year plan guidance due to the rapidly evolving impact of COVID-19 on the global economy.
We stand in solidarity with those who are working so diligently to protect our industry throughout this challenging time. To see how other companies are stepping up, keep following along with us at AndNowUKnow.
YARDLEY, PA - How can we as an industry leverage our global workforce to contribute to a more sustainable world? At Crown Holdings, its commitment to product innovation has enabled the company to grow in ways that benefit customers and shareholders while minimizing the impact on the environment. The company recently published its 2019 Sustainability Report detailing its environmental, social, and governance achievements from fiscal years 2017 and 2018 and previewing focus areas for its next set of sustainability goals.
“We are very proud of the strides we have made in the last two years to become an even more sustainable company,” said John Rost, Ph.D., Vice President, Global Sustainability, and Regulatory Affairs. “These achievements were made possible by the inspiring efforts of our global team as well as the fundamental benefits of our primary product-metal packaging. As a material, metal supports the circular economy, protects our customers’ products by delivering outstanding shelf-life, and provides an unparalleled return on investment at every level.”
Highlights from the 2019 report include:
Making Progress Against 2020 Sustainability Goals (as of December 31, 2018)
- Achieved 94 percent of its Scope 1 and Scope 2 greenhouse gas (GHG) emissions reduction target, with a 9.43 percent decrease in GHGs per billion standard units (versus 2015 levels). Absolute emissions have decreased by 1.7 percent even as total production has increased by 8.4 percent
- Decreased energy consumption by 6.23 percent in its metal packaging plants, surpassing its goal of 5 percent reduction in usage per billion standard units (versus 2015 levels)
Reducing Environmental Impact
- Aluminum consumption is on a four-year downward trend, even as the company has increased production of beverage cans by almost 10 percent in that period
- In 2018, several of Crown’s European sites achieved zero waste to landfill and less than 10 percent of total waste generated across the Division’s 61 locations was sent to landfill
- The Florence, Kentucky (U.S.), operation of the company’s Transit Packaging Division produces plastic strap made from nearly 90 percent recycled material, significantly reducing dependency on new raw material consumption
Using Renewable Energy
- 6.7 percent of Crown’s global operations are currently using renewable electricity
- 100 percent of Crown’s U.K. facilities have been powered by direct supply of renewable electricity since 2018
- 100 percent of electricity in U.S. and Canadian beverage can plants will be matched with wind power generation as of July 1, 2020
Investing in Employees and Communities
- Crown’s Toluca, Mexico, beverage can plant partnered with customers to donate 2.3 million cans of water in the aftermath of the devastating 2017 earthquake in Mexico City
- The company’s Acayucan, Mexico, beverage packaging plant initiated programs to educate women in the surrounding rural community about health and wellness and provided entrepreneurial-focused classes
- Crown’s Brazilian operations implemented several initiatives that contributed to the educational development of local public school students and provided safe, healthy extracurricular activities. Programs included workforce training, music lessons, and Judo classes
- The company’s Transit Packaging facility in Bangalore, India, supported 1,000 students with free mid-day meal assistance and invested in upgrading nine schools, including seven preschools
- Each May, in conjunction with National Women’s Health Week, Crown provides access to on-site mammograms at its corporate headquarters in Yardley, Pennsylvania (U.S.). To date, the unit has conducted over 800 screenings
To further elevate its commitment to sustainability, Crown is laying the groundwork for its next set of sustainability goals. According to a press release, focus areas will include climate, resource efficiency, circularity, social change, product stewardship, and governance and ethics. Goals will formally be announced in early 2020 and progress toward them will be reported annually. The company is already making headway in several of these areas:
- Crown joined RE100 in 2019, pledging a total transition to 100 percent renewable electricity by 2050
- The company committed to the Science-Based Targets Initiative, which requires it to set specific goals for reducing GHG emissions. These targets, to be announced in 2020, will align with global temperature limits set by the Paris Agreement of 2015
- Crown recently announced plans to reduce water usage in its global operations by 20 percent from 2019 levels by the end of 2025. These efforts will decrease the company’s water usage by over 500 million gallons annually
Though it has traditionally followed a biennial reporting schedule, Crown will release its next report in early 2021 to formally wrap up its 2020 sustainability goals and provide insight into its new objectives.
Keep clicking back to AndNowUKnow as we report on the latest and greatest sustainability initiatives.
LOS ALAMITOS, CA - As consumers seek out a more rounded plate full of fresh fruits and vegetables, retail registered dietitians are becoming more of a reliable resource in educating shoppers and retailers on how to make the best food and lifestyle choices. March 11 was National Registered Dietitian Nutritionist Day, and Frieda’s Specialty Produce took the time to celebrate these in-store superheroes.
“The store-level retail dietitians are really the healthy eating coaches of the grocery store,” said Alex Berkley, Director of Sales. “They are an accessible, approachable, and affordable (or free) source of advice for shoppers to make the best decisions when it comes to healthy, delicious eating. And from our experience, store-level retail dietitians love to promote fresh produce!”
And those advocates are deemed high up in ANUK’s book! According to Frieda’s press release, USA Today cited that hypertension, high cholesterol, and diabetes continue to be top health conditions in the U.S. A great way to combat those health concerns is working with a retail registered dietitian, which can lead to healthier eating, better compliance with medication, and improved health results.
A 2019 study of hypertension patients, originally reported in ConsumerAffairs, revealed that 30 participants who received three counseling sessions from retail dietitians over the course of 12 weeks saw favorable results.
With a strong player like retail dietitians on the front lines, consumers and retailers can both benefit from the positive fresh produce encouragement in everyday lifestyles.
Keep an eye out for more updates from AndNowUKnow as we continue to bring more retail-related news.
PORTLAND, OR - The produce industry has seen a rise in demand as of late, putting an increased strain on the supply-side as consumers fill their baskets with fresh produce. Organics are especially feeling the pinch as the popular sector across multiple demographics and regions becomes an even more desirable destination at retail. I tapped Oscar Trujillo, Manager of Mexican Sales for Bridges Organic Produce, to gauge how the organic grower is faring during this time and what we can expect in the near future.
“We had some rains this last January, so volume has been tight on cucumbers for about a month now. We have a little bit of a lower yield, but we’re expecting our new crop to come in soon,” Oscar tells me. “In the first week of April, we’ll start the new cucumber harvest, and that will ramp up. It’s going to take a week or two for the pipeline to fill, but we should start seeing volume in the second half of the month.”
Oscar informs me Bridges also just started picking yellow squash and zucchini, which will carry through May. On top of that, green beans will arrive just in time for Easter and hot peppers will start as Cinco de Mayo arrives, offering cantaloupes, watermelons, and mini seedless watermelons beginning in early May. Since hard squash is a big part of Bridges’ portfolio, I ask Oscar how the grower is holding up with current retail demands.
“Since hard squash is durable, we’ve seen an increase in demand,” he says. “With how things are currently, we’re asking our partners to be patient. We have the volume, but it’s going to take a little bit longer to fulfill demand right now.”
Items such as soft squash, green beans, eggplants, and melons are daily replenishable produce items, meaning that there will be sufficient volumes for retailers from Bridges.
With relief in sight, retailers and consumers can rest assured that their healthy fruits and veg will be in bountiful quantity once again. For more vital updates in the produce industry, keep checking back with ANUK.
KEASBEY, NJ - As the retailer gears up for additional expansion, Wakefern Food Corp announced two key additions to its C-suite roster. Steve Henig was recently promoted to the role of Chief Customer Officer, and Bryant Harris will take the position of Chief Merchandising Officer.
According to the press release, Henig has spent nearly three decades at Wakefern progressing through various procurement roles as well as leadership positions in corporate merchandising and marketing. He most recently served as Vice President of Digital Commerce and Analytics where he was responsible for e-commerce initiatives, app development, and analytics needs. He oversaw the launch of the company’s first automated micro-fulfillment center and leads the popular ShopRite from Home service.
In his new role, Henig will work with Wakefern members, leaders, and associates to create a single, consistent brand voice for its customers and provide a deep understanding of the market, customers, and competitors. He will oversee the departments of branding, e-commerce, marketing, and advertising.
Harris brings nearly 20 years of experience in retailing to his new role at Wakefern where he will oversee the product procurement strategy, in-store merchandising, pricing, and promotion. He will be working closely with Henig to design and implement strategies to increase sales growth for the cooperative.
Previously, Harris worked as Executive Vice President, Chief Commercial Officer for Save A Lot, in charge of assortment strategy, procurement, pricing, visual merchandising, and store design. Harris also previously held various positions at Walmart and its subsidiary, Sam’s Club, including the lead of Sam’s Club’s fresh foods division, a role that represented $13 billion in annual sales.
A graduate of The College of New Jersey, Henig now teaches strategy and marketing at the school. He also received his Master of Business Administration from Monmouth University in New Jersey. Harris received a bachelor’s degree in accounting from University of Missouri and served four years in the U.S. Army, attaining the rank of Captain.
With a wealth of experience and knowledge at Wakefern’s advantage, the company is sure to shake up the retail sector. For more exciting promotions and executive hires in the industry, keep reading AndNowUKnow.
ORLANDO, FL - What is the produce industry if not a mission for nutrition? While we all contribute to this collective goal on a daily basis, some organizations take this mission to new heights. Produce for Kids® (PFK) recently launched its second annual Mission for Nutrition promotion in celebration of National Nutrition Month®. PFK is aligning with health-conscious brands and more than 400 retail dietitians at 52 retailers across the U.S. and Canada to launch a digital and in-store program focused on the importance of meal planning to make healthy choices.
“This year, in addition to our partners making a donation to support Feeding America® programs that support families and children, retail dietitians are receiving a toolkit to execute a healthy food drive in stores to make their own shopper-driven donation,” said Trish James, Vice President at Produce for Kids. “We are excited to once again offer one retail dietitian a continued education scholarship for submitting their Mission for Nutrition in-store events, cooking classes, or demos to us during the month of March.”
A resource kit filled with health-focused items from Produce for Kids as well as Mission for Nutrition partners including, Crispy Green® Crispy Fruit, Eat Smart®, Litehouse®, Mission Produce, Nature Fresh Farms, Pero Family Farms®, and RealSweet® Sweet Onions, was shipped to more than 400 retail dietitians. Included in the kit is a mini magazine published by PFK featuring recipe inspiration and a shopping list. The magazine is expected to reach 22,000 shoppers over the course of the month, according to a press release.
Retail dietitians were encouraged to create a display, demo, or in-store event with the items provided in the Mission for Nutrition kit. Every retail dietitian participating received an “I’m a Dietitian. What’s Your Super Power?” tumbler to recognize their efforts in creating a healthier generation and one will receive a $1,000 continued education scholarship. The 2019 winner, Jennifer Klein, MS, RDN, who is a retail dietitian at the ShopRite of Manchester, New Jersey, utilized the kit components to host in-store recipe demonstrations and cooking classes throughout the month of March.
“Having served as a retail dietitian, I am excited to be helping to guide Produce for Kids on the in-store needs for this demographic,” said Julie Harrington, Retail Dietitian Contributor to Produce for Kids. “Mission for Nutrition is a great way to expose shoppers to health-conscious and community-conscious brands and set shoppers on a nutritionally-sound path.”
Weekly giveaways around meal planning took place on the Produce for Kids Instagram and program partners, retail dietitians, and Produce for Kids influencers also interacted with consumers during the #MissionForNutrition Twitter party on March 12. Additional marketing efforts around Mission for Nutrition included targeted e-newsletters, influencer outreach, and promotion on The Healthy Family Project by Produce for Kids podcast.
As we all continue fighting for our nutritional mission, stay right here with us at ANUK to hear the latest news in the industry.
FLORIDA - Few can bring a market perspective like the purveyors behind the expanding Sarah’s Homegrown brand by Frey Farms. With feet firmly planted in both the fresh beverage business as well as growing the fruit that makes those beverages fresh, awareness of where to get ample volumes of flavorful watermelons is key.
“Sarah’s Homegrown is an all-encompassing label that doesn’t just speak to the beverage side of our business, but the produce as well,” Renee Goodwin, Director of Sales, shares with me. “While our production does go toward the base ingredients in our beverage business, much of it comes out of what we grow in the U.S., making it necessary for us to monitor the market and ensure that we have consistent supply.”
Currently, Frey Farms is looking to the Florida chapter of its harvest calendar, where the grower rotates from the south upward as the state warms up.
“We are probably three to four weeks out from the expected Florida harvest date, and things are looking really good for our crop specifically,” Renee says, sharing that, so long as Mother Nature continues to cooperate, the company will remain aligned with harvest projections.
While there has been some concern in the area brought on by white fly pressure, Renee says that, thankfully because of a remote location, Frey Farms has been lucky not to have been affected thus far.
“We should have good volume, in South Florida and beyond. We are a bit unique from domestic providers in that, rather than harvesting all the way up the East Coast, we transition out of Georgia into southern Missouri. The result is that we have excellent distribution opportunities for those in the central U.S. and midwest, with lower freight rates than those trucking out from further east,” Renee explains.
And with volume trending with the numbers necessary to fulfill retail commitments for Sarah’s Homegrown line, no shortfalls are currently on the horizon. Great news, as Renee adds that the team is already seeing demand for watermelon supply.
“We work with some beverage industry staples that are already reaching out to ask about their first loads of watermelon for beverages of all kinds. I see watermelon becoming a lot more in demand for a base ingredient to that market as a whole, and so for retailers with watermelon product interest I highly recommend you book early and often,” she chuckles.
While weather could still turn up the heat—speeding up the watermelon harvest by up to seven to ten days—it remains too soon to tell for certain if that will be the case this spring. As that time gets nearer, however, be sure that AndNowUKnow will keep you briefed on all the latest.
UNITED STATES - As the United States continues its efforts to contain the spread of the coronavirus (COVID-19), President Donald Trump has issued an update on border controls. According to NPR, Trump stated at a press conference on Wednesday that he plans to seal off the U.S-Mexico border—but that the southern border would not close completely.
Growers tell us there may be potential slowdowns, but suppliers are aiming to keep operations running with the least amount of impact as possible.
“This is a very fluid situation, with things constantly changing, but as of this moment there are no limitations on the U.S. side of the U.S./Mexico border in Texas,” Dante Galeazzi, President and CEO of the Texas International Produce Association, shared this morning. “Everything is flowing through, and so far we haven’t gotten any complaints of delays. We have also been in communication with Customs Border Patrol (CBP) on a nearly daily basis, and we are grateful to see that they continue to communicate with us and seek industry feedback. CBP appears dedicated to ensuring the flow of commerce, and fresh produce, continues without interruption.”
He added that if we see an impact on international produce trade it will likely be fewer workers, as those who can’t come in must instead care for loved ones and children at home.
“I think that will be the biggest potential disruption for the produce industry. The importance of fruits and vegetables to the human immune system should be strongly reinforced right now. Obviously, everyone should be taking the best precautions as far as cleanliness and personal hygiene, but you should also be looking at what you are putting in your body,” Dante said.
With operations at Texas and Arizona port of entries, Matt Mandel, Vice President of Finance and Legal, SunFed, shared his sentiments on the current environment.
“We want to reassure retailers that trade will keep flowing at the southern and northern borders despite possible measures put into place,” Matt shared. “There may be potential slowdowns, but we will address the policy changes as they arise and do our best to mitigate any challenges that we can.”
Tony Incaviglia, Vice President of Sales and Marketing at GR Fresh, also expressed business operations will run as smoothly as possible.
“There is talk about potential closure for human crossings, but this should not impact any restrictions for produce or food in general, pending any developments in the severity of the virus,” Tony confirmed. “Business should continue as usual with only the normal social distancing practices to limit exposure.”
The U.S. and Canada, however, have agreed to close their mutual border to all “non-essential” traffic. In a report released by the CBC, the federal government has said it will allow temporary foreign workers to continue entering Canada, despite new restrictions at the border to limit the spread of the novel coronavirus. Workers will be allowed to enter Canada after observing a 14-day period of self-isolation.
"During these unprecedented times, we continue to attempt to meet all of our retail partners' demands from our greenhouses in Mexico, USA, and Canada," Carlos Visconti, Chief Executive Officer of USA and Canada Operations, Red Sun Farms, reflected. "As of today, with the information we have received, our borders are open for the transportation of essential needs such as produce, and we are committed to meet the retailers' demands. Our staff are highly engaged and working with governing agencies in Mexico, USA, and Canada to ensure proactive responses to the changing environment."
Communication between suppliers and customers has become a crucial part of the dialogue and will remain so on all fronts, according to growers.
“It was made clear by both Canadain Prime Minister Trudeau and U.S. President Trump that border restrictions would not affect cargo. The produce industry is considered a necessary business, and we continue to work to meet the needs of our customers, supporting all our farming operations across North America, and meeting the needs of our retail and foodservice partners,” Chris Veillon, Chief Marketing Officer at Pure Flavor, shared. “Of course we are respecting the restrictions put into place, and most importantly we are working to ensure our partners are getting what they need during this challenging time.”
AndNowUKnow will continue to update the latest news in the industry.