ROSEMONT, IL - While still not in the clear in terms of the pandemic, more and more restaurants have begun reopening, and for distributors like US Foods, that means an increase in demand. This has proven to be the case as the company released its second quarter fiscal 2021 results, reporting that gross profit increased 74.2 percent to $1.2 billion, a $498 million boost from the prior year.

"The commitment to excellence demonstrated by our associates has fueled our very strong second quarter results," said Chairman and Chief Executive Officer Pietro Satriano. "As markets around the United States reopen without restrictions, we have seen strong demand for our products, services, and consultative expertise. While supply chain labor is expected to remain challenging for the next few quarters, we remain focused on delivering profitable growth as our industry continues to recover."

In addition to a gross profit boom, the distributor also saw case volume and organic case volume skyrocket. According to a press release, total case volume increased a 53.5 percent, with independent restaurant case volume shooting up 79.1 percent. Total organic case volume saw a 50.3 percent increase for the quarter, while organic independent case volume saw a whopping 74.4 percent gain, showing that foodservice is beginning to make a comeback following the past year and a half of dormancy due to lockdowns.

Other highlights from US Foods’ second quarter fiscal 2021 results include:

• Net sales of $7.7 billion, a 68 percent increase from the year prior
• Net income available to common shareholders was $46 million
• Adjusted EBITDA increased 277.3 percent to $332 million
• Diluted EPS was $0.20; Adjusted Diluted EPS was $0.58

As part of the release, the company also announced its six month fiscal 2021 standings. Overall, US Foods revealed that its net sales for the period had increased 28.1 percent from the year prior to $14 billion. Gross profit also rose 25 percent from the year prior to $2.2 billion, a $435 million increase from the same period in 2020. US Foods’ adjusted EBIDTA for the six month time span increased 90.2 percent to $504 million.

The distributor held a conference call and webcast to announce the results this morning, and slides from the presentation can be found on the company’s investor relations page. To see more details from US Foods’ second quarter and six month results, click here.

As the foodservice industry remains on the rise, how will it impact US Foods’ success? Keep reading AndNowUKnow as we bring you the latest.

US Foods

TRAVERSE CITY, MI - Building out one’s prowess in the fresh produce industry often begins with looking inward to fortify a diverse team of talented leaders. This is just the move North Bay Produce is making as the company revealed it has tapped Paul Driscoll as its new Director of Business Development in Canada.

“It’s incredible to see how much North Bay has grown and achieved over the years. I am very excited to once again be working with this amazing organization,” Driscoll stated. “Tremendous potential exists for flavor and quality in Canada. North Bay growers are focused on these attributes and more. We look forward to growing together with our partners in Canada.”

Driscoll has over 25 years of experience in the industry and has a deep passion for fresh produce. According to a press release, he brings a great understanding of many of the challenges in the Canadian marketplace, with experience working with various producers around the world and a continued focus on taste, innovation, and product development.

“Paul is a leader in the produce industry in Canada, and we know he will be a great asset to our business,” stated Nick Osmulski, President. “Aside from that, Paul is a great person, and we are happy to have him on board.”

As he steps into his new position, Driscoll will play an instrumental role as the company works to build on its Canadian relationships.

North Bay Produce optimizes cutting-edge technology and extensive varietal trials in multiple key regions around the globe to produce the best-tasting and longest-lasting fruits and vegetables while also reducing waste through technology and strategic breeding.

We here at AndNowUKnow congratulate Paul Driscoll on his recent appointment, and we’ll be here to report on the successes to come for North Bay Produce.

North Bay Produce

ELK CREEK, CA - Three key state and federal decision makers recently met to discuss their response to building wildfire resiliency in California. Governor Gavin Newsom joined U.S. Agriculture Secretary Tom Vilsack and U.S. Forest Service Fire Chief Randy Moore at the burn scar of the 2020 August Complex to collaborate on ​wildfire response, fuel management, and other efforts to build resilience against wildfire as extreme climate impacts ripple across the West.

“California is fortunate to have strong federal partners committed to taking aggressive action to tackle the existential threat of catastrophic wildfires in the West driven by climate change impacts,” said Governor Newsom in a press release. “Together, we’re scaling up our vital work to improve the health of forests and landscapes across multiple ownerships and jurisdictions and ensuring we prioritize efforts in communities that face the greatest risks.”

Chief Moore recently issued a memo to all regional foresters temporarily halting “managed fire” until further notice in order to prioritize fires that threaten communities and infrastructure. The Governor requested that federal wildfire suppression strategies be reassessed amid the extreme risk posed by current fire conditions. He also called for federal investments to support additional firefighting personnel, aerial firefighting equipment, and long-term access to satellite technology for early detection.

The Governor, alongside Secretary Vilsack, who serves as Co-Chair of the Biden Administration’s Wildfire Resilience Interagency Working Group and Interagency Drought Relief Working Group, Chief Moore, USFS Regional Forester for the Pacific Southwest Region Jennifer Eberlien, and CAL FIRE Director Thom Porter surveyed damage from the August Complex fire and joined a briefing at the Alder Springs U.S. Forest Service Station. The briefing underscored the role of fuel management efforts across state and federal jurisdictions in helping to protect the area around Alder Springs.

Joint state-federal management is crucial to California’s overall forest health and wildfire resilience, as the federal government owns 57 percent of California’s forestlands while the state owns 3 percent. The Newsom Administration and the U.S. Forest Service are working under a shared stewardship agreement to treat one million acres of forest and wildland annually to reduce the risk of wildfire. In addition, Governor Newsom also launched an expanded and refocused Wildfire and Forest Resilience Task Force, with federal, local, and tribal leaders, to deliver on key commitments in the Governor’s Wildfire and Forest Resilience Action Plan, which outlines a path to increasing the pace and scale of land management.

Under this Legislature, the Governor has invested $2.2 billion to build wildfire resiliency and advance emergency response as part of the California Comeback Plan. The funding supports additional firefighting crews, new firefighting equipment, and expanded land and forest management efforts and builds on the Governor’s previous budget investments in emergency management and executive actions. Additionally, Governor Newsom surged CAL FIRE’s firefighting ranks in March by authorizing the early hire of 1,399 additional firefighters, and this month supplemented the department’s capacities with 12 additional aircrafts.

As we continue to track California’s wildfires, ANUK will be sure to keep you informed.

RANCHO CORDOVA, CA - As leaders from across the industry gather to celebrate advancements and innovations in fresh at Southeast Produce Council’s (SEPC) upcoming Southern Innovations, one produce titan is preparing to flex its value-added prowess on the show floor. To find out exactly what Renaissance Food Group (RFG) has in store for this year’s attendees, I tap Nelia Alamo, Vice President of Communications, for some exclusive insights.

“RFG is a long-time supporter of SEPC and Southern Innovations, and we are very excited to return to in-person events,” Nelia begins. “We look to SEPC events to draw decision-makers and key stakeholders from the buy-side community. Events such as Southern Innovations are well-attended and provide great selling and networking opportunities, which we hope to take advantage of.”

Demonstrating the ever-evolving innovation of the fresh produce industry, RFG will be showcasing several new offerings that satisfy consumer demand for unique, flavorful, and convenient products as they continue to cook more at home.

During the show, RFG will be highlighting convenience and on-trend flavor profiles as we move toward the fall and winter selling months. The value-added supplier offers organic and conventional solutions for retail and foodservice channels, and will optimize Southern Innovations to promote these unique capabilities.

“Together with Calavo Growers, we have tons of exciting initiatives on deck to drive forward our ‘one-company’ vision,” Nelia concludes. “And with Southern Innovations on the horizon, we’re looking forward to a great show!”

Stop by to check out RFG at booth #100 to get an inside look at some of these exciting industry innovations. As always, keep reading AndNowUKnow, as we promise to continue bringing you the latest news from across the fresh produce industry.

Renaissance Food Group

MOREHEAD, KY - In February of this past year, AppHarvest made a name for itself as the first greenhouse company to go public through the launch of its IPO. Now, the AgTech innovator has made another key move to drive its evolution as it has announced Julie Nelson as its new Executive Vice President, Operations, tapping into her years of expertise with companies like PepsiCo to increase its supply chain capabilities.

“AppHarvest’s mission aligns with my personal values,” Nelson said. “AppHarvest’s vision of combining the best that nature offers boosted with world-class technology to sustainably and affordably grow nutritious fruits and vegetables is inspiring, and I look forward to building a best-in-class operational team in support of this mission to build a climate-resilient food supply.”

In her new position, Nelson will play a key role as an Executive Management Committee member, reporting to President David Lee. She will also aid in developing company strategy, establishing operations, and driving efficiency to reach productivity and cost goals while guaranteeing quality and customer satisfaction.

Nelson joins the company after most recently serving at McKinsey & Company, according to a press release. Prior to that, she held a long tenure at PepsiCo, where she led supply chain teams and the global operations team. While with the company, her focus included network optimization, scaling digital technologies, and end-to-end value chain productivity.

She holds a Bachelor of Science in Economics from the Wharton School of the University of Pennsylvania and an MBA from Harvard Business School. Nelson is also an advisory council member for the West Virginia University Global Supply Chain Management Program.

Founder and Chief Executive Officer Jonathan Webb commented on Nelson’s recent appointment.

“Julie has battleground-tested experience in scaling operations across sites,” he said. “Her recent focus on improving sustainability in the food and beverage supply chain by reducing food waste, energy consumption, and greenhouse gas emissions makes her a natural fit at AppHarvest.”

Lee mirrored Webb’s sentiments.

“Julie’s deep experience optimizing complex manufacturing and distribution networks for major consumer goods companies and her proven ability to drive productivity across the supply chain will help us to deliver improved profitability as we scale,” he added.

Cheers to Julie Nelson as she takes this next step in her career!

AppHarvest

AVON, CT - Whole Foods Market is once again accelerating its expansion strategy as it prepares to bolster its presence in another key market. Recently, the retailer announced it will be opening a new store in Avon, Connecticut, on September 1.

The new 44,760-square-foot store’s assortment will place emphasis on local products from the New England area, hand-picked by Whole Foods Market North Atlantic’s Local Forager, Holly Long, according to a press release.

The new Avon Village store will feature a large assortment of organic, conventional, local, and Sourced for Good produce, as well as Eco-Certified apples and peaches grown on family farms.

The new store will also house a number of local grocery products, in addition to upgraded seafood and butcher departments and a specialty department dedicated to honoring cheesemakers and other artisan producers.

As noted in the release, all food at Whole Foods Market must meet the company’s rigorous quality standards, which prohibit hydrogenated fats, high-fructose corn syrup, and over 100 flavors, colors, sweeteners, and other ingredients commonly found in food.

Stay tuned to see how the retailer will continue to push this ambitious strategy forward, as AndNowUKnow will surely be here to report.

Whole Foods Market

BREWSTER, WA - A successful settlement between Gebbers Farms and Washington State Department of Labor and Industries has been announced following allegations of COVID-19 regulation violations. In tandem with the announcement, a study by the Centers for Disease Control and Prevention states that workers who lived in Gebbers-provided housing were three times less likely to contract COVID-19 than other workers living in the community. Furthermore, the study found that the Gebbers workforce had a positive rate of only 0.7 percent.

“Gebbers Farms has always cared deeply about the wellbeing and safety of its workers,” said Cass Gebbers, Chief Executive Officer. “Each year, Gebbers Farms makes improvements to its temporary housing facilities to enhance the safety and comfort of its workers. This mediation agreement will result in even more improvements, and it will benefit the community at large through the farm’s donations to community charities and non-profits.”

The Washington State Department of Labor and Industries originally assessed a $2.06 million fine for alleged violations in July 2020, although Gebbers Farms had implemented COVID-response protocols that it developed in consultation with an infectious disease specialist.

Under the terms of the mediation agreement, Gebbers Farms will now:

• Make $1.4 million in improvements to its facilities, including entirely new farmworker housing and sports facilities, landscaping around housing areas, additional air conditioning units, and location signage at each camp
• Continue supporting local causes by donating more than $500,000 to local health, safety, and child-development organizations
• Install a cell tower to improve cellular service for workers and communities
• Hire a full-time safety officer to oversee the development and implementation of Gebbers Farms’ existing and new worker safety programs
• Pay a fine of $10,000

According to a press release, Gebbers Farms has posted copies of this agreement in common areas for employees to read.

“Although we are pleased this issue is resolved, we have not forgotten the thousands who lost loved ones during this pandemic. Sadly, in 2020, Gebbers Farms also lost longtime team members and familiar faces to our family. These men, their families, and all Gebbers employees are part of the reason why we are gratified that the agreement includes our continued investment in our workers and our local communities,” added Gebbers.

Stick with ANUK as we continue to cover the efforts made to protect agricultural workers from the COVID-19 virus.

Gebbers Farms

LE GRAND, CA - J. Marchini Farms is making moves to help retailers bring in the sales this summer with its latest seasonal launch. The supplier recently announced the return of the 2021 main fig crop.

“The California fig season is short and sweet, but it’s hands down the best time of year to eat a fresh fig,” said Francesca Fordice, Sales and Marketing. “When shoppers see fresh figs stocked at their local store, they tend to be overly enthusiastic that the California fresh fig season has started.”

Marchini’s premium fig season kicked off with the Breba crop, a short crop that only lasts for a few weeks, in the beginning of June, according to a company release. Now, the supplier is ramping up for its main fig crop, which will include three unique varieties available from August to October.

These enticing offerings include the Black Mission, Brown Turkey, and Kadota varieties, which will each offer a unique use to shoppers from now through the fall. J. Marchini’s versatile Black Mission figs have a delicate, purple-black skin and dark pink flesh and can be used in a variety of dishes ranging from sweet to savory. The Brown Turkey variety has a milder flavor and are typically less sweet than the Black Mission variety, making them perfect for salads and desserts. This fig features a brownish-dark purple skin with an alluring pink flesh. The Kadota variety, on the other hand, has a yellowish-green skin with an amber color flesh when ripe, and are often canned or dried, as they are practically seedless. This variety is less sweet than others, making them optimal for baking and cooking.

Regardless of how they choose to utilize them, consumers will surely be in search of delicious figs this summer, so make sure those shelves are stocked.

J. Marchini Farms

SANTA MARIA, CA - Catching up with industry members has to be top of the list for me, especially when I’m also gleaning market insights. One of my go-tos for Brussels sprouts info is none other than Crystal Chavez, Gold Coast Packing’s Marketing Coordinator.

“The current Brussels sprout crop is offering great quality, but it is coming along slowly as there are a bit of yield issues,” Crystal commented, noting that the number of cases per acre are slightly lower than projected. “Weather has not been a factor for our Brussels sprouts crop, as we’ve experienced great weather here on the California Central Coast, which is keeping the market steady and firm.”

Crystal remarked that this steady market has seen pricing similar to what it was a year ago, with steady numbers hovering around $30.

“Gold Coast has great quality coming out of our fields. We expect quality and volume to continue on a high note as we move into the holiday months when the demand for Brussels sprouts always increases,” she added. “We offer Brussels sprouts in whole, halved, and shredded formats for foodservice and whole sprouts for retail. We started offering smaller packs of Brussels per a customer’s request, and these smaller offerings have become popular for meal kits.”

What once was a niche offering has become essential for multiple operators. Be sure to keep both retail and foodservice customers happy by keeping Brussels in stock!

As always, check back in with AndNowUKnow for the latest news in the fresh produce biz.

Gold Coast Packing