LOUIS, MO - Winds are a-blowin’ and acquisitions are a-brewin’! The Missouri-based Schnuck Markets announced that it has acquired Mahomet IGA in Mahomet, Illinois. With this new store, Schucks will be increasing its footprint to four locations in the Champaign-Urbana metropolitan area.
“Our mission is to nourish people’s lives, and we’re excited to be able to bring that philosophy to the people of Mahomet while also adding the store’s employees and their grocery experience to the Schnucks team,” said Schnucks Chairman and CEO Todd Schnuck. “Brooks and Tammy [Marsh] have operated this store with pride for 15 years, and we look forward to continuing to take care of the store’s longtime customers and welcoming many new ones as well.”
The company’s press release stated the Mahomet store at 202 Eastwood Drive will remain open as Mahomet IGA through 5 p.m. on Sunday, March 29, before reopening on Wednesday, April 1, as Schnucks. Schnucks’ Human Resources team expressed it will speak to the store’s 79 employees today to make employment offers.
“As our family moves to our next chapter, we are excited to offer our friends, customers, and teammates a company that shares our tradition of serving people,” said Brooks Marsh. “Schnucks offers excellence in nutritious foods and is a great fit in the growth of our dynamic village.”
The Marshes will remain the owners of the 38,000-square-foot building, which will be leased to Schnucks. An 8 a.m. ribbon-cutting ceremony will precede the April 1 opening.
“Our business and community have been such blessings in our lives,” Tammy Marsh added. “I look forward to what Schnucks will bring to these customers that have been like family to us.”
For more information and updates in the retail space, check back with ANUK as we bring you the latest.
SAN FRANCISCO, CA - If you want to stay ahead of the food industry’s trends, you don’t need to look farther than any of your local eateries’ menus. For it is often in the foodservice sector where trends first take shape after flavors, dishes, and fresh produce varieties catch the whim and fancy of today’s most cutting-edge chefs and restaurant operators. At the James Beard Foundation’s Raising the Bar reception, held in San Francisco, California, on March 5, this was very much the case, with many of the city’s most innovative culinary minds putting their best recipes and dishes forward to titillate foodie guests.
Front and center at this unique and delicious event were a few of our industry’s biggest fresh produce advocates, including the California Avocado Commission (CAC). With its eye-catching avocado-forward booth, the CAC team took to the James Beard event to showcase the endless applications of California avocados on foodservice menus. This included featuring the fruit as more than a cocktail garnish by adding it directly into the drink.
Amidst the chatter and chef adoration happening across the crowded floor of the reception, I asked Jan DeLyser, Vice President of Marketing for CAC, how events like Raising the Bar help drive fresh produce innovation at foodservice.
“High-caliber events that attract the California avocado targeted consumers provide opportunities for the commission to embed our marketing messages in engaging pleasurable moments. Local foodies and influencers sampled amazing dishes featuring California avocados prepared by top-notch chefs, and their experiences are very memorable,” Jan shared with me. “The organizations and chefs we are working with are among those driving foodservice innovation and bringing more fresh produce to the center of the plate.”
For part two of the James Beard Foundation’s Taste America® event, CAC collaborated with James Beard-award winner Chef Charleen Badman of FnB Restaurant. This culinary mastermind joined CAC for the California avocado season kickoff at the 2020 James Beard Foundation Taste America Gala, which took place on Friday, March 6.
“Having spent childhood summers with my family in San Diego enjoying the fresh California avocados grown in my grandparents’ backyard, I learned at an early age the importance of using fresh ingredients that are grown close to home and harvested at their peak for consistent taste and texture,” said Chef Badman.
And it wasn't only Chef Badman who chose to highlight the importance of local food, and local fresh produce especially, at the James Beard festivities. Whole Foods Market’s Chef Ambassador Melissa King also chose to spotlight local farmers and growers in the dish she prepared for reception attendees—which was a modern take on a classic recipe.
The Mushroom Council was also out in full force, introducing consumers to more exotic mushroom varieties as easy substitutions in Blended Burgers™. Other local San Francisco restaurants in attendance incorporated fresh produce items like asparagus, citrus, edible flowers, and more within never-before-seen cocktails and light bites.
It was an excellent and extravagant night at the James Beard Raising the Bar reception, only made more so by fresh produce and the burgeoning innovation amongst foodservice’s finest in lauding our industry’s top categories as center-of-the-plate stand-outs. As we continue to keep our eyes on culinary leaders and their menus around the world, AndNowUKnow will continue to celebrate all fresh produce-forward accomplishments.
UNITED STATES - As of late, the phrases “leafy greens” and “food safety” have seemingly gone hand-in-hand. The industry as a whole has experienced the impact of foodborne illness in this category, and in response has worked night and day to find a solution. Last week, the FDA released its 2020 Leafy Greens STEC Action Plan, detailing prevention strategies for the well-being of buyers and suppliers alike.
“FDA’s Action Plan lays out a pathway forward built on stronger collaboration and cooperation among the grower community, CA and AZ LGMA’s, researchers, and a host of state and national government agencies,” commented April Ward, Communications Director of the California LGMA, in response to the report. “The LGMA applauds the efforts of Deputy Commissioner Frank Yiannas and his colleagues to make the process inclusive and in partnership with all stakeholders in the supply chain from field to store, restaurant, and consumers.”
According to Ward, LGMA’s success is directly tied to the FDA’s involvement in food safety prevention. Any input provided by the FDA including product testing data, research, and information gathered through outbreak investigations is extremely useful as the organization works to improve its systems.
In addition to LGMA, other organizations like PMA rely heavily on the FDA for updates such as the STEC Action Plan.
According to Dr. Max Teplitski, PMA’s Chief Science Officer, “it will be critical to work collaboratively to identify metrics for the efforts that the industry and our public health agency research and regulatory partners can commit to as well as resources needed to achieve our common goal of minimizing risks associated with the consumption of leafy greens and engendering trust in foods.”
Dr. Teplitski continued, "We applaud the FDA’s determination to continue to engage in conversations in real-time with all stakeholders at critical times. PMA is committed to delineating the vision and opportunities for re-engaging and incentivizing the industry towards building a mutually beneficial data bank for sharing and analyzing data. FDA’s commitment to provide a timely analysis of the outbreak investigation reports to support a roadmap for prevention is highly welcomed. Further, we underscore the importance of collaboration in identifying opportunities for sustained longitudinal surveillance and capacity building for timely root-cause analyses. Clearly, timely root-cause analyses and opportunities to fill knowledge gaps, outside of immediate outbreak events, can only be successful when all parties share data. Mechanisms must be put in place to facilitate data collection and sharing, and development of novel tools for predictive modeling to promote learning. In the process, we must engender trust, ensure protection of proprietary information and recognize efforts of those committed to participating in improving public health protection.”
We at ANUK commend the work of the FDA, LGMA, PMA, and the industry as a whole as they work to support the market with preventative measures against foodborne illness.
LYNDONVILLE, NY - As one of the fresh produce industry’s biggest categories, apples are constantly pressed for new innovation and growth. One way for companies to achieve this is to strengthen their leadership teams, which is exactly what United Apple Sales is working toward. Recently the company announced the promotion of one of its longest-tenured management employees, Brett Baker, to Corporate Vice President of the parent company and a new member of the ownership team.
“I am excited about becoming an owner with the Dobbins family, who has given me every opportunity to be successful with the company. It is a dream for me and my family to know that we can play a vital role in contributing to United Apple’s great future,” commented Baker.
Baker graduated with honors from Cornell University, College of Agriculture and Life Sciences, with a degree in Applied Economics and Business Management. According to the news release, he joined United Apple in 2010 as international and domestic Account Manager, and a member of the executive management team.
Ward Dobbins, President and Owner of United Apple, commented that Baker has been a key associate of the team and been instrumental in driving major sales and operations initiatives for the company and its subsidiary divisions.
“Brett has a unique background in the agricultural sector where he started as a fourth-generation grower with his family farms in New York, learning the business literally from the ground up, and later becoming the company’s General Manager,” Dobbins said. “He brings a comprehensive understanding of the ag business that has proven invaluable with our growers both domestically and internationally. He also brings his store management experience with major retailers to United Apple, which gives our team credibility and a definite edge in designing programs that resonate with our regional and national retail partners.”
United Apple has been an industry leader in growing new varieties—EverCrisp, Ruby Frost, and SnapDragon—and Baker has played an integral role in fine-tuning growing practices to maximize the productivity of new orchards and leveraging the apples to give retail partners a distinct advantage in the marketplace.
“With retailers looking to get closer to growers and suppliers, Brett is able to bring unparalleled knowledge and insights to the marketplace. His expertise is recognized by retailers and ag communities where he has been active in both local and national trade group activities,” said Dobbins.
In addition to his new role, Baker currently serves as a member of the U.S. Apple Export Council and a member of the U.S. Apple Board.
Congratulations to Brett Baker on this next step in his career!
BOISE, ID - Rumors have been swirling for years that Albertsons planned to go public, and now the retailer has finally made good on its promise. Late last week, the company issued a statement that it has officially filed a registration statement with the Securities and Exchange Commission for an IPO.
As we previously reported at the beginning of this year, people familiar with the matter valued Albertsons’ potential IPO at roughly $19 billion. AndNowUKnow can only wait with bated breath until official numbers surface.
A press release noted that the amount of securities offered will be determined by market conditions and other factors at the time of the offering. The number of shares of stock to be offered and the price range for the offering have not yet been determined. To see further information about Albertsons' initial public offering, click here.
Will Albertsons' IPO be another retail success? We here at AndNowUKnow will continue to patrol the newswire for the latest in all things grocery.
KINGSVILLE, ONTARIO, CANADA - Expansions and progressive growth in the greenhouse sector is the talk of the town in 2020. Industry leader and innovator Mastronardi Produce® is energizing the category by significantly increasing access to locally and winter-grown, flavorful SUNSET® produce with the recent procurement of Double Diamond Farms greenhouse supply.
“The increase in northern production is especially vital for providing our Midwestern and Eastern consumers with flavorful, locally-grown produce even in the winter months, within a day of being picked,” says Paul Mastronardi, President and CEO of Mastronardi Produce. “We will continue to increase the availability of local produce and meet the incredible and loyal consumer demand for the SUNSET® brand.”
Mastronardi Produce® has assumed sales and marketing of Double Diamond Farms production of 140 acres of high-tech, lit greenhouses in Leamington, Ontario, with plans to expand to 172 acres by 2021—a value proposition for its retail and foodservice partners that cannot be overstated.
On top of the exponential growth of the greenhouse visionary, the company has also made recent locally-grown investments that include the development of Green Empire Farms in New York, the largest single-build high-tech greenhouse in North America boasting 64 acres of lit growing capacity, and a partnership with AppHarvest in Kentucky—a 60-acre, state-of-the-art facility hosting one of the most sustainable, efficient, and technologically advanced greenhouses of its kind.
According to a press release, the two expansions along with the development of Double Diamond Farms, have increased the company’s lit acreage by 250 in 2020 alone, with more expansion planned. Altogether, Mastronardi Produce will total over 5,000 acres of total growing capacity.
As we look to the greenhouse sector to help pave the way in growth and ingenuity, companies like Mastronardi Produce are helping us lay the stones for a more progressive tomorrow.
ROSEMONT, IL - I like to think of foodservice as a snowball rolling downhill—indefinitely. This force of nature continues to gain speed and weight as it acquires new resources to bulk up. The foodservice heavyweight US Foods is rolling down the ski slope at lightning speed, today announcing that it has entered into a definitive agreement to acquire Smart Foodservice Warehouse Stores from funds managed by affiliates of Apollo Global Management, Inc. for $970 million in cash.
“As we continue to expand our multi-channel strategy, we know customers, particularly independent restaurants, increasingly use cash and carry as a convenient, cost-effective purchasing option,” said US Foods Chairman and CEO Pietro Satriano. “With an established footprint and a consistent record of profitable growth, Smart Foodservice will complement our CHEF’STORE cash and carry model and provide a platform to significantly accelerate our presence in this attractive, growing channel.”
Smart Foodservice operates 70 small-format cash and carry stores across California, Washington, Oregon, Idaho, Nevada, Utah, and Montana, that serve small and mid-sized restaurants and other food business customers with a broad assortment of products. Founded in 1955 and headquartered in the greater Portland, Oregon area, Smart Foodservice employs approximately 900 associates. Smart Foodservice had 2019 revenues of approximately $1.1 billion and approximately $85 million in Adjusted EBITDA (including standalone cost estimates).
“The management team at Smart Foodservice very much looks forward to working with the team at US Foods in accelerating our growth in the attractive cash and carry foodservice market,” Derek Jones, President of Smart Foodservice, commented. “US Foods is an ideal partner for Smart Foodservice and we are excited about the synergistic and strategic benefits of the combination.”
According to a press release, US Foods sees higher case volume growth with customers who place delivered orders and purchase through existing CHEF’STORE cash and carry locations. Smart Foodservice brings a strong record of profitable growth and US Foods is well positioned to continue to expand its small store model into new markets. This acquisition will complement the company’s existing CHEF’STORE cash and carry model.
“We are pleased that Smart Foodservice will be able to thrive with a strong complementary partner in US Foods,” Andrew Jhawar, Senior Partner of Apollo and Head of the Consumer & Retail Industry Group, added. “We would like to thank Derek Jones and all of the employees at Smart Foodservice for their dedication in building a highly differentiated business in the cash and carry industry, and we know the company will be in great hands with its new owners.”
To read the full financial details of this acquisition, click here. And, as always, keep coming back to ANUK as we cover the snowball effect that shapes our industry’s acquisitions.
SHAWNEE, OK - Fresh produce is moving in on the commanding display tactic previously granted to beer and soda, and it only takes about 35,000 pounds of apples. That is what Oklahoma-based Firelake Discount Foods is doing with an absolutely gigantic presentation of Chelan Fresh’s Fuel Up to Play 60 (FUTP 60) label bagged apples.
“This store is going a long way to make healthy options affordable and available for parents,” Mac Riggan, Chelan’s Director of Marketing, shares with me. “This is quite possibly the world’s largest bagged apple display in a grocery store.”
In fact, to start our conversation, Mac sent me photos of the towering construction. What I am used to seeing dedicated to center store and party options we want to steer future generations away from is being dedicated instead to Red Delicious, Granny, and Gala apples. It is nothing short of awe-inspiring.
Totaling in 11,760 3 lb bags, the apples are specifically value-priced for parents as a part of the 10-year-running Fuel Up To Play 60 program.
“The FUTP 60 program empowers kids to make healthy choices. This leading national program is focused on helping schools meet their wellness goals and encourage kids to consume healthy, nutrient-rich foods and at least 60 minutes of physical activity a day,” Mac explains.
Not only does our industry perfectly align with that cause, but the program’s roots in being founded by the NFL, among other partners, suddenly brings to mind what might have inspired Firelake Discount Foods’ display: it looks like a towering Super Bowl promo of apples.
Let’s hope this not only inspires more eye-catching produce displays around the nation and beyond, but the sales numbers to match.
RIVERSIDE, CA - Volatile avocado markets have been the hallmark of recent seasons for the popular category, but as we look to the end of winter and the beginning of spring, retail and foodservice buyers can expect promotional opportunities with amazing partners like Index Fresh. Keith Blanchard, California Field Manager, took a beat from his day to talk me through the pulse of the market as we gain ground in 2020.
“We are currently underway with an excellent harvest in California and Mexico. Shipments have been good throughout the U.S., and Peru is estimated to export 200 million pounds to the U.S. starting in June and will be in the market through August,” Keith shares with me. “This winter, with an early start in California, we have been fortunate to be able to offer avocados from both California and Mexico to our customers.”
On the horizon for the spring, Index Fresh is very excited to be offering the California GEM variety to select customers with the company gearing up to start the GEM harvest in early April.
“This is our third season packing the GEM variety. We believe that the GEM is a great addition to the avocado category and has proven itself as a stand-alone variety,” Keith tells me. “The handling characteristics are like that of the Hass avocado so the end-user will have a positive experience trying the fruit for the first time.”
Keith adds that volumes are very good this season from all countries of origin and with the estimated supply of three billion pounds in the U.S., retailers will have very good promotable volumes from each country of origin.
“These conditions are a great benefit, allowing Index Fresh to develop tailored programs for retailers that meet their specific needs. California has a good crop that is tracking close to 400 million pounds—and almost 70 percent increase from last season—and will be in the market through September,” Keith says.
As a grower-owned company that is owned and managed by avocado growers, Index Fresh has a unique philosophy with its grower programs.
“We take pride in our grower services and superior grower returns. The recent past seasons have had severe volatility in the market supply. Index Fresh differentiates ourselves from our competition by offering a complete grower education program, that includes educational seminars and field meetings with our professional agronomist,” Keith wraps up.
With a promising California avocado season to support all countries of origin, keep checking back with AndNowUKnow for more on the market and upcoming promotional opportunities.
WASHINGTON, DC - As part of its efforts to enforce the Perishable Agricultural Commodities Act (PACA) and ensure fair trading practices, the Department of Agriculture (USDA) has imposed sanctions on two produce businesses operating out of Texas. The two companies allegedly failed to meet their contractual obligations to sellers of produce as well as failed to pay reparation awards amounting to a total of $13,560 issued under the PACA. These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA.
Direct from the USDA Agricultural Marketing Service:
By issuing these penalties, the USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.
The following businesses and individuals are currently restricted from operating in the produce industry:
- Candymar Produce Inc., operating out of McAllen, Texas, for failing to pay a $1,920 award in favor of a Florida seller. As of the issuance date of the reparation order, Candido Nieto and Maricela Diaz were listed as the officers, directors and/or major stockholders of the business.
- Itamp Inc., operating out of Dallas, Texas, for failing to pay an $11,640 award in favor of a Texas seller. As of the issuance date of the reparation order, Luis Armando Lopez was listed as the officer, director, and major stockholder of the business.
PACA provides an administrative forum to handle disputes involving produce transactions; this may result in the USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. The USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors or major stockholders, may not be employed by or affiliated with any PACA licensee without USDA approval.
The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers and brokers within the fruit and vegetable industry.
In the past three years, 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 USDA continues to support the fruit and vegetable industry.
For further information, contacts, and to read the press release in its entirety, please click the link here.