IRVINE, CA - New Year’s resolutions won’t be the only things for Western Growers (WG) to celebrate come January, as a new Chief will also be joining the association in a couple of months. Naming its first Chief Operating Officer in history, WG has appointed Steve Mangapit to the executive team. In this role, he will be focused on implementing operational efficiencies, improvements, and innovations.

Mangapit joins Western Growers from AP | Keenan, where he served as Vice President, a press release stated. There, he was responsible for three business units: Employee Benefits TPA, Healthcare Analytics, and Large Group Agency Operations (Benefits).

Previously, Mangapit worked at WG for four years with Western Growers Assurance Trust/Pinnacle Claims Management. In 2010, he served as Director of Administration and was promoted in 2013 to Assistant Vice President, Operations.

He holds a bachelor’s degree in Mathematics from the University of Nevada, Las Vegas (UNLV), and a MBA (Finance) from the Lee Business School at UNLV. Mangapit is married with two young children.

“By virtue of his past service with us, only Steve brings the expertise and the all-important depth of knowledge about our own business structure, objectives, processes, and opportunities, and his most recent professional experience has propelled him to now take on this great responsibility,” said President and Chief Executive Officer Dave Puglia.

Cheers to a new chapter for both Western Growers and Steve Mangapit!

Western Growers

ZAANDAM, NETHERLANDS - Following the release of its third quarter financial results showing strong forward momentum, Ahold Delhaize has hit the newswires once again to unveil the next phase of its ambitious Leading Together strategy. The next chapter of this ongoing strategy outlines key plans and targets for 2025 and includes accelerating sales growth, doubling down on digital customer relationships, and creating one of the largest supply chains on the East Coast of the United States.

“Our Leading Together strategy has proven to be strong in recent years and is a great foundation as we head into the future,” stated Frans Muller, President and Chief Executive Officer. “The COVID-19 pandemic put our people and our strategic choices to the test, and through it all we were able to always deliver for our customers, our communities, and our associates in all the brands and support companies. I cannot stress enough how proud I am of our achievements. The pandemic has accelerated the pace of change in the retail industry. It has also changed consumer behavior permanently with people shopping more online, eating more at home, and having a bigger interest in local and healthier food.”

In this new phase of its Leading Together strategy, the company has identified four priorities to double down on between now and 2025. According to a press release, they include:

• Serving customers through deeper digital relationships across its omnichannel Customer Value Proposition (CVP)
• Accelerating development of/investments in omnichannel capabilities
• Leading the transformation into a healthy and sustainable food retail system
• Leveraging its portfolio to create the ultimate ecosystem for smarter local customer journeys

To bolster its omnichannel presence, Ahold will invest in its brands and provide shoppers with the relevant products, service, promotions, experiences, and premium subscription memberships that they have sought in the past. Ahold also revealed that it will accelerate its investments in building scalable and repeatable operational capabilities, with a focus on digital, online, data, and automation.

In making these key investments, the company expects to accelerate net sales growth with €10 billion ($11.4 billion) in incremental sales from 2023–2025. Net consumer online sales are also planned to double between 2021 and 2025.

“To support these plans, the company will increase investment levels from 3 percent to 3.5 percent per annum to fuel growth,” explained Natalie Knight, Chief Financial Officer. “We will continue to be the best operator in the industry, underlined by our world-class operating margins. As part of our planning toward 2025, we are committing to even more ambitious Save for Our Customers targets: ~€4 billion ($4.5B USD) by 2025. We will also use our knowledge and experience to make eCommerce profitable by 2025, and I am pleased to announce a planned €1 ($1.1B USD) billion share buyback for 2022.”

In addition to growing its omnichannel platform, Ahold announced that it is looking to establish one of the largest supply chain networks on the East Coast of the U.S. In 2019, the retailer’s U.S. arm launched its supply chain transformation, focused on bringing back its supply chain as it builds out its network and added new facilities in pivotal geographies.

Now, Ahold plans to accelerate this mission, further optimizing its supply chain capabilities on the East Coast.

“With these changes, Ahold Delhaize USA will have full control of its supply chain and an optimized network at scale, which enables the local brands to better serve their customers, allows ADUSA to continue to invest in automation and digital capabilities to lower costs to serve, and ultimately enables direct to customer relationships as part of its omnichannel network,” Kevin Holt, Chief Executive Officer, Ahold Delhaize USA said. “The transformation will create one of the largest supply chain networks on the East Coast. It is scheduled to be finished in April 2024, with 26 facilities in the integrated self-distribution network.”

The retailer is also looking to create a first-of-its-kind customer ecosystem as it expands its Leading Together strategy. This will focus on Ahold’s supermarket brands Albert Heijen and Delhaize, online marketplace bol.com, as well as Gall & Gall and Etos in the Benelux.

The Benelux brands will work closely together to connect shopping experiences across food and non-food, offering customers more convenience, value, and relevance. Ahold will also explore a subsidiary Initial Public Offering (sub-IPO) for bol.com to accelerate its growth potential.

“Time is a precious commodity for our customers. Retailers who can simplify the customer journey will be most relevant in the long term and, powered by bol.com, we believe we can be one of them. With the combined strengths of all the brands in the Benelux, we have a one-of-a-kind opportunity to create a truly comprehensive customer ecosystem,” said Wouter Kolk, Chief Executive Officer of Ahold Delhaize Europe and Indonesia.

Rounding out this strategy, Ahold will invest in, sharpen, and strengthen its healthy and sustainable food retail system goals. Among these ambitions is the retailer’s mission to reach net-zero carbon emissions across its own operations no later than 2040, and become a net-zero business across its entire supply chain, products, and services by 2050.

Ahold has also joined the Business Ambition for 1.5°C, a global coalition of UN agencies, business, and industry leaders, in partnership with the Science Based Targets initiative (SBTi) and the UN led campaign ‘Race to Zero’. These and other ESG metrics will make up a bigger part of executive incentive programs going forward and will be supported by increased transparency.

“We realize that these are ambitious targets which require a lot of work over the coming years, and we feel encouraged by our double AA rating upgrade by MSCI and recently confirmed DJSI leadership position,” commented Muller. “But most importantly we are confident that these and the other targets included in today’s strategy update are achievable because of our highly engaged and committed associates.”

To read the report on these critical investments in its entirety, click here.

A webcast of the company’s Investor Day presentations will also be available on the company’s website with further insights.

As Ahold carries out these new initiatives, AndNowUKnow will report.

Ahold Delhaize

WASHINGTON, DC - Recently, the U.S. Department of Agriculture (USDA) announced that David Lopez, doing business as Texas Best Produce, satisfied a reparation order totaling $47,880. The order was issued under the Perishable Agricultural Commodities Act (PACA) involving unpaid produce transactions. This is an update to the previous sanction imposed this June.

Direct from the USDA Agricultural Marketing Service:

The Helotes, Texas, company has met its obligations and is now free to operate in the produce industry. David M. Lopez was listed as the sole proprietor of the business and may now be employed by or affiliated with any PACA licensee.

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in 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. 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.

Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named, responsibly connected individuals. USDA also requires any unlicensed company that fully satisfies all unpaid reparation awards to obtain a license if it continues to operate in the industry.

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 3,625 PACA claims involving more than $104 million. PACA staff also assisted more than 7,600 callers with issues valued at approximately $166 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

To read the release in full, please click here.

USDA Agricultural Marketing Service

DALLAS, TX - As we know, marketing agencies are full of expert strategists, and DMA Solutions just gained a new one. Leslie Simmons, who has roughly 16 years of experience under her belt, has been named as the company’s new Marketing Strategist.

“As a fresh produce marketer, I’ve always deeply appreciated DMA’s high-level expertise, helpful resources, and passion to elevate the produce and floral industry,” said Simmons. “I’m thrilled to have the opportunity to further support their excellent work!”

Simmons joins DMA with over 10 years of experience in the fresh produce industry specifically, in addition to six years spent advertising and marketing in New York City. At DMA, she will provide marketing services and solutions to the agency’s clients as well as ensure business goals and objectives are being met, a press release stated.

While Simmons began her career in marketing, her experience ranges across all aspects of the fresh produce supply chain, including expertise in food safety, logistics, trade show planning, sales, and operations. She is also heavily involved with industry associations by practicing leadership, mentorship, and elevating women in business.

“I am extremely proud to officially announce Leslie has joined the DMA team,” said Dan’l Mackey Almy, President and Chief Executive Officer. “Not only does Leslie’s extensive fresh produce expertise bring significant value to the clients we serve, her passion for serving both our industry and the people within it make her a great culture fit for our growing team.”

Simmons will be joining the DMA team this week on November 18 during Marketing Matters, the company’s interactive webinar, to discuss the impact of private labels on growers, retailers, and consumers.

Congratulations to Leslie Simmons on landing this new role!

DMA Solutions

NEWARK, DE - Sustainability continues to remain a key topic for the industry as a whole, and vital decisions are being made that spark the need for further industry innovation. As many countries across Europe have made the decision to pass regulations that ban non-home compostable PLU stickers, the Produce Marketing Association (PMA) is working to advance innovation and industry involvement with regulators on PLU stickers through several efforts.

“The PLU sticker is an essential solution to a complex challenge facing retailers, allowing their consumers to clearly understand pricing while also having the flexibility to buy only the amount they want,” explained PMA Vice President of Supply Chain and Sustainability, Ed Treacy. “The alternative to PLU stickers is to package all produce, leading to an increase in plastics and packaging material and limiting choices for consumers or a reduction in premium varieties offered for sale, including organics.”

According to a press release, the association has been aligning with USDA Foreign Agricultural Service (FAS) to support them in outreach to regulators in countries like Spain and France, in addition to submitting public comments to France and the Spanish government regarding the proposed rule on reducing plastic waste, which in turn eliminates the use of PLU stickers.

“It is important for us to reduce the need for single use packaging, and we appreciate the steps many regulators are taking to put sustainability front and center in their solutions,” PMA Chief Science Officer Dr. Max Teplitski added. “However, the use of PLU stickers relates to optimizing operational efficiency and consumer choice which helps us fight food waste. In order to ensure we’re not simply trading one problem for another, we believe any solution requires investment in innovations informed by those in the industry. We profoundly appreciate USDA FAS making exactly that kind of investment.”

In addition, the USDA FAS made research funding available under the Technical Assistance for Specialty Crops (TASC) program to assist in the development of a home compostable PLU sticker. The association made its label service provider members aware of the funding available, and member Sinclair International, with USDA Agriculture Research Service (ARS), were successful in obtaining a grant from USDA FAS to develop a home compostable PLU sticker.

“PMA is grateful for the invitation to participate on behalf of the industry,” said Teplitski. “We will continue to educate consumers, thought leaders, and influencers on the importance of PLU stickers in fighting food loss, reducing single use packaging waste, and promoting the consumption of fresh produce.”

The USDA ARS also tasked PMA with assisting in efforts to educate on the importance of produce packaging and PLU stickers as it relates to export requirements. On November 17–18, Treacy will provide industry context in a breakout on the single use plastics ban in France and beyond during the Annual Workshop for the United States Agricultural Export Development Council (US AEDC).

PMA initiated a volunteer committee in 1988 to develop solutions to ensure the accuracy in the price consumers are charged for fresh fruits and vegetables sold in bulk, or loose, at retail, resulting in the IFPS PLU codes that we see today. While the stickers are food grade, the majority in use today do not meet the standards for being considered “home compostable,” which is being used in many areas, especially European regions, to meet new environmental regulations.

To stay up to date on the latest industry news, leave a tab open for AndNowUKnow.

Produce Marketing Association

LAKELAND, FL - Boosting its leadership might, Publix recently announced promotions within its executive team. Going into effect at the start of the year, Chris Mesa and Doug Stalbaum will be advancing in their roles, each stepping up as a Vice President and Controller.

Mesa currently serves as the Director of Tax and Treasury. He began his career in 1986 in Tampa, Florida, as a Front Service Clerk. In 1993, he transferred to support as a Clerk in the treasury department.As noted in the release, Mesa worked in various positions within tax and treasury before being promoted to Senior Tax Manager in 2004, Director of Tax in 2015, and to his current position in 2018.

In addition to his current tax and treasury functions, Mesa will be responsible for merchandise and DSD payables and accounts receivable as he steps up to Vice President and Controller. Amongst his 35-year tenure with the retailer, Mesa is also a recipient of the 2018 George W. Jenkins Award.

Joining Mesa in the Vice President and Controller position is Stalbaum. Stalbaum joined the company in 2019 as Director of Business Analysis and Reporting. Prior to joining Publix, Stalbaum has developed a wealth of retail experience spanning nearly 17 years.

Stalbaum was a Senior Audit Manager at an accounting firm for eight years before joining the Publix team. Prior to that, he was a Senior Director and Controller at a restaurant chain for six years and Director of Finance at a furniture retailer for three years.

According to the release, Stalbaum will be adding to his current information systems and pharmacy support functions responsibilities with new tasks such as financial reporting process, store banking functions, and expense payables.

“We are excited to announce the promotions of Chris and Doug,” said Publix Chief Executive Officer Todd Jones. “Their financial knowledge and commitment to providing premier service to our stores make them valuable members of our team. For our company to have continued success and growth, we need dedicated associates who are ready to take the next step in their Publix careers. We look forward to seeing all they will accomplish in their new roles.”

Check back in with AndNowUKnow as we report on the dealings in retail, foodservice, and fresh produce.

Publix

SANTA BARBARA, CA - When an unstoppable force meets an immovable object, it takes innovative techniques to inspire forward momentum. This is the case for retailers as growing consumer demand for fresh products has been pitted against industry challenges such as rising costs, labor shortages, and supply chain disruptions, leaving buyers searching for new ways to satisfy their shoppers. Enter Apeel, using its technology to create new opportunities for buy-side success.

“By extending the lifespan at peak quality to fruits and vegetables, Apeel can offer more time to an industry that has been limited by perishability,” explains Jim Smits, Vice President of Retail Advisory. “Our technology can create new opportunities to improve customer satisfaction, in-store experiences, sustainability, and business logistics that retailers may not have thought possible.”

Recently appointed to his new role at Apeel, Jim has over 40 years of retail experience, including more than two decades in operations and shopper go-to-market strategies. With time spent in senior merchandising roles at companies like Albertsons, H-E-B, and Ahold Delhaize, he understands the movement of the retail market and the continuous innovation it takes to keep consumer needs met while increasing ROI.

With shopper habits in a constant state of evolution, Apeel’s technology will keep retailers aligned with today’s consumer trends as well as their own corporate and financial goals. One of the most important ways the company does this is by boosting consumers’ experience and satisfaction levels when it comes to the selection of fresh produce they are being offered.

“As consumers demand healthy, value-driven, convenient, and sustainable fruits and vegetables, retailers realize that fresh products have never been more important,” says Jim. “Offering high-quality products boosted by Apeel technology that are differentiated, sustainable, ready-to-eat today and days from now, or that offer innovation and value can make a difference in shopper frequency and overall loyalty.”

Sustainability is another important factor in what products shoppers are adding to their baskets. With Apeel’s offerings, retailers can reduce store waste by up to 50 percent, increasing shelf-life and therefore the opportunity for sales. The number of environmentally driven shoppers is growing, and they are willing to spend more on sustainable products. Apeel's plant-based coatings address this trend by giving consumers a way to help reduce waste, conserve resources, and ensure the best possible eating experience.

Additionally, Jim tells me that Apeel is able to use its solutions to boost revenue impact and supply reliability.

“Driving margin improvements, revenue, and market share growth requires improving operations, decreasing costs, and offering differentiated products,” he elaborates. “By using Apeel, our retailers are able to decrease waste and improve in-store operations and distribution centers with longer-lasting produce. They are also able to utilize the company’s global investments to enable new trade routes or new categories that were not accessible to them before, ensuring greater access to commodities.”

Sometimes the only way to make it past an immovable object is by climbing over it, and Apeel is already giving its buy-side partners a boost.

Apeel

WASHINGTON, DC - The U.S. Department of Agriculture (USDA) recently released a series of announcements regarding alleged Perishable Agricultural Commodities Act (PACA) violations. Of them, the USDA revealed that it had imposed sanctions against two produce businesses in Pennsylvania and Missouri for failing to meet contractual obligations to the sellers they purchased from and for failing to pay reparation awards issued under PACA totalling $75,994.

These sanctions include suspending the businesses’ PACA licenses and barring the principal opeators of the businesses form engaging in PACA-licensed business or other activities without approval from the USDA.

Direct from the USDA Agricultural Marketing Service:

The following businesses and individuals are currently restricted from operating in the produce industry:

• Louis Produce, operating out of St. Charles, Missouri, for failing to pay a $44,886 award in favor of a Missouri seller. As of the issuance date of the reparation order, Joshua A. Blassingame was listed as a member of the business
• Sycamore Foods, operating out of Scranton, Pennsylvania, for failing to pay a $31,108 award in favor of a New York seller. As of the issuance date of the reparation order, Pavlos Vardinogiannis 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 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. 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.

By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

To read the release in its entirety, click here.

USDA Agricultural Marketing Service

BAKERSFIELD, CA - You may just hear me belting out holiday tunes this season, especially when I’ve got good reason to be festive. After chatting with Grimmway Farms’ Lisa McNeece, you’ll know why I’ve been belting out “Rocking Around the Carrot Tree.” The fresh produce whiz has more than a few insights up her sleeves as we make way for the season, including why carrots should be on every holiday table.

“Carrots are a mainstay during the holidays,” Lisa, Vice President of Foodservice and Industrial Sales, shares with me. “They serve an important role in meals, on menus, and in school lunches year-round, but they truly shine during the holiday season as shoppers aren’t afraid to stock up on carrots from now through New Year’s. A hearty, versatile veggie packed with nutrition, consumers can rely on carrots for their long shelf-life and crisp, fresh flavor.”

Suitable for traditional side dishes, roasts, and soups, you can slice, dice, and shred carrots any way you like to make creative desserts and salads. Talk about versatility!

“We’re pleased to meet heightened demand through November and December, and we’re excited to see an increase in foodservice activity with schools back in session,” Lisa adds. “We’re seeing great quality and strong supply among our fall carrot crop. We’re harvesting in the San Joaquin Valley through March and we start harvesting in the Southeast next month.”

As retailers prepare for holiday promotions to meet existing consumer demand, Lisa notes several best practices to keep shoppers on the right track.

“Merchandise carrots with flavorful ingredients to inspire recipes, and build colorful sets that combine rainbow and orange carrots with other fresh-cut produce to encourage healthy snacking,” she explains. “We recommend cross-promoting table carrots with complementary vegetables like potatoes and onions, and showcasing their sweet flavor by merchandising shredded carrots with all the fixings for a cake.”

Working closely with its partners to provide carrots at efficient costs, Grimmway prides itself on bringing solutions to the table when it comes to keeping its customers stocked.

“While we face the same economic pressures that challenge suppliers in and out of the produce industry, we do everything we can to develop solutions that meet customer needs and keep carrots in ample supply in stores and schools,” Lisa says.

Be sure to stay tuned to AndNowUKnow as we cover the latest in the fresh produce biz!

Grimmway Farms

QUÉBEC, CANADA - This week is one of strengthened partnerships and milestones met. In its largest-ever rollout of its smart LED lighting solution, Sollum Technologies has partnered with greenhouse grower Allegro Acres to expand its LED-lit operations from four to 12 acres.

“Sollum’s smart LED lighting solution gives greenhouse growers unparalleled, real time, and remote control of their lighting and opens unprecedented opportunities for the horticultural industry,” said Sollum Chief Executive Officer Louis Brun. “Year-round production is one of the benefits, which also include improving growers’ productivity and adaptability, increasing Canadian food autonomy, and strengthening local economies.”

Allegro Acres’ expanded operation utilizes more than 12,000 smart lighting fixtures connected to Sollum’s SUN as a Service® cloud platform, a press release stated. The video linked here gives us a closer view of the solution.

The project is supported, in part, through the Greenhouse Competitiveness and Innovation Initiative, which is a cost-share program funded by the Ontario Government and delivered by the Agricultural Adaptation Council, on behalf of the Ontario Ministry of Agriculture, Food, and Rural Affairs.

“With this expansion, now even more Canadians will be able to enjoy fresh, locally grown peppers all winter long,” said Gene Ingratta, President of Allegro Acres. “We were so pleased with last year’s harvest of winter-produced peppers, which was the first ever in Canada using LED lighting technology, that we decided to triple our acreage. Sollum’s solution was a big part of our success, and there was no question that it was going to be part of our plans going forward.”

As we continue to see LED technology take over the greenhouse space, keep an eye out for the latest reports from ANUK.

Sollum Technologies