CINCINNATI, OH - When you have a dynamic partnership between two leading companies, it makes sense to continue strengthening it. Kroger, for instance, has recently announced it will continue expanding its partnership with Ocado, laying down plans to construct three new Customer Fulfillment Centers (CFC) in the Great Lakes, Pacific Northwest, and West regions.

“Kroger is incredibly excited to construct three additional industry-leading Customer Fulfillment Centers across the country in relationship with Ocado to bring fresh food to our customers more conveniently than ever before,” said Robert Clark, Kroger’s Senior Vice President of Supply Chain, Manufacturing, and Sourcing. “Through our strategic partnership, we are engineering a model for these regions, leveraging advanced robotics technology, and creative solutions to redefine the customer experience.”

Kroger has partnered with Ocado to accelerate its ability to provide customers with anything, anytime, anywhere. The CFC model—incorporating state-of-the-art automation and AI—will be used to expand Kroger products to a larger footprint.

According to a press release, the new facility in the West will measure 300,000 square feet, the new facility in the Pacific Northwest will measure 200,000 square feet, and the facility in the Great Lakes region will measure 150,000 square feet. The varying sizes demonstrate the flexibility of the Ocado fulfillment ecosystem to best serve the respective markets. When operational, the facilities will collectively create more than 1,000 new jobs, with the potential for hundreds of additional career opportunities. The exact locations of the new facilities will soon be announced.

“Kroger and Ocado are building an e-commerce ecosystem across the U.S. that will deliver unrivaled online experiences to more customers, in more ways, and in more markets,” said Luke Jensen, CEO of Ocado Solutions. “Spanning a range of automated CFC sizes, these three new sites will be key parts of this growing and flexible fulfillment network. Alongside the scale and wider benefits of larger CFCs, smaller format and mini CFCs will allow Kroger to reach more geographies with Ocado’s automation, while also catering to a wide range of options for delivery.”

The newly named locations will complement the retailer’s previously announced CFC sites in Monroe, OH; Groveland, FL; Fredericksburg, MD; Atlanta, GA; Dallas, TX; and Pleasant Prairie, WI. Kroger plans to open one of the country’s first CFCs in Monroe, OH, a suburb of Cincinnati, in early 2021.

With Kroger’s aggressive expansion plan unfolding, how will the retail landscape change? AndNowUKnow will follow Kroger and others in the retail sector to bring you the latest.

Kroger

NOVI, MI - Lineage Logistics is continuing to expand its operations after acquiring another cold storage dynamo. This week, the provider of temperature-controlled logistics solutions acquired Henningsen Cold Storage Co., adding to its expansive U.S. facility network and bolstering its presence in the Pacific Northwest.

“We are honored to welcome the Henningsen team to the Lineage family and to serve our combined customer bases across additional points in their food supply chains,” said Greg Lehmkuhl, President and Chief Executive Officer of Lineage. “Our organizations share a commitment to excellence, doing business with integrity, and finding sustainable ways to run our businesses, and I look forward to seeing how our strong operational and cultural foundations will propel us into the future.”

Kevin Marchetti, Co-Founder of Lineage Logistics and Bay Grove, added, “We have known the Henningsen family since our earliest days in the cold chain industry and have deep respect for the business, culture, and reputation they have built over generations. When we founded Lineage a little over eleven years ago, we looked to emulate companies like Henningsen that built their company with a long-term mindset. With this transaction, we will bring together two companies with that type of approach and make them both even stronger together.”

As part of the agreement, Lineage will be adding 14 facilities across Oregon, Washington, Idaho, Pennsylvania, North Dakota, and Oklahoma, which builds on its existing 1.9 billion cubic feet of temperature-controlled capacity across 311 facilities in 11 countries.

Henningsen Cold Storage Co., which was founded in 1923 by Waldemar F. Henningsen, Sr., originally operated under the name “Northwestern Ice & Cold Storage Inc.,” and stands today as a fifth-generation family business with a legacy of reliability and long-standing, excellent relationships with customers, according to a press release.

“On behalf of the entire Henningsen family, we are thrilled to be joining Lineage,” said Paul Henningsen, President of Henningsen Cold Storage Co. “We chose Lineage because we believe it will be the best way to strengthen our partnerships with customers by providing access to an unrivaled international facility network, extensive technology and automation resources, as well as a robust suite of supply chain solutions. I am incredibly proud of our organization and the customer and employee centric reputation we have built over many years. I’d like to thank the entire Henningsen team for their continued efforts and dedication to our business, and I can’t wait to see what the future holds for us as part of Lineage.”

The transaction is expected to close in the coming months, subject to customary closing conditions.

How will Lineage Logistics' latest acquisition affect the industry's cold storage market? AndNowUKnow will continue to report.

Lineage Logistics

WENATCHEE, WA - Looking to diversify your apple displays even further? Stemilt Growers has the apple program for you with its Artisan Organics™ Lil Snappers® apples. Lil Snappers kid size fruit is dedicated to serving families a healthy snack they can feel good about consuming during the upcoming summer months when convenience is top of mind.

“The COVID-19 pandemic has changed grocery shopping habits, and it’s encouraging to see both produce sales and organic sales up year-over-year,” states Brianna Shales, Senior Marketing Manager. “In fact, apples are among the top four organic items in the produce department, making Lil Snappers an excellent bagged item to carry right now.”

Lil Snappers kid size fruit is available in multiple organic varieties, including Gala, Pink Lady®, Granny Smith, and Fuji, which are all varieties popular among young consumers. Artisan Organics Lil Snappers are available in 3-lb high graphic pouch bags that stand out among other packaged products and stand up in the fridge to help maximize fridge space.

“Lil Snappers packaging is colorful, bright, and extremely eye-catching and easily captures the attention of a young kid scanning the fridge for snack,” explains Shales. “Plus, the size of the fruit is an appropriate serving size for children, which leads to a reduction in food waste. It’s a win-win for any parent.”

Shales encourages retailers to act now to carry Artisan Organics Lil Snappers apples through the summer months. While the summer season is a slower time for apple sales, Shales believes carrying organic Lil Snappers apples is an excellent opportunity for retailers to strengthen the category, especially while consumer habits continue to change, as noted in a press release.

“Lil Snappers market intent and are great for online sales, especially while shopping trip frequency is down,” said Shales. “The larger pack size provides enough apples to feed a family with two kids an apple snack every day for a week. This grab-and-go pack drives apple category volumes during the summer months.”

To promote this item, Shales encourages retailers to plan multi-variety ads and use featured banner ads for an online push. While online grocery shopping continues to rise, retailers should maximize their digital channels and social platforms by promoting Lil Snappers through various assets, including photos, video of product in store, and resources that Stemilt can provide. Shales also encourages retailers to check Lil Snapper product listings online to ensure information is up to date.

“Stemilt has resources that retailers can use to accurately portray product details, and share the story of Lil Snappers and our Artisan Organics brand. It’s important that consumers trust the products they purchase and at Stemilt, we strongly believe in total transparency with the consumer and knowing the stories of our products.”

Stemilt’s Artisan Organics program has a 30-year history that now focuses on growing modern organic flavors that consumers will love. Stemilt’s Artisan Organics Lil Snappers is just one successful result of this change.

“We’re able to carry core varieties of Artisan Organics Lil Snappers year-round,” said Shales. “This brand has become a reliable way for retailers to market to families. The grab-and-go pack offers convenience and quality to attract loyal organic shoppers, and new ones too.”

Check back twice daily for ANUK’s email blasts featuring the latest news in fresh produce.

Stemilt Growers

WASHINGTON, DC - A new organic market has become available to U.S.-based fresh produce purveyors. The American Institute in Taiwan and the Taipei Economic and Cultural Representative Office in the United States recently signed and exchanged letters on behalf of the United States and Taiwan inaugurating a new organic equivalence arrangement, allowing organic products certified in the United States or Taiwan to be sold as organic in either market.

The arrangement covers products certified to the U.S. Department of Agriculture (USDA) organic regulations or Taiwan organic regulations that are grown or produced in the United States or Taiwan; or have their final processing or packaging in the United States or Taiwan.

“This equivalence arrangement streamlines trade in certified organic goods with Taiwan, a key international partner in the organic market sector,” said Under Secretary Greg Ibach. “This arrangement protects and increases access for American organic farmers, ranchers, and businesses to the fifth largest U.S. export market for USDA certified organic products.”

This agreement eliminates the need for organic operators to have separate organic certification to the U.S. and Taiwan standards, which avoids a double set of fees, inspections, and paperwork, according to a press release.

Equivalence paves the way for the expansion of existing fresh fruit, vegetable, and processed food trade and provides new market access opportunities for organic livestock and other products. The arrangement also allows U.S.-based organic food processors to source Taiwan certified organic ingredients, increasing the range of organic products available to consumers.

Taiwan is the fifth largest export market for U.S. organic products, with sales approaching $92 million in 2019 and is forecasted to grow by almost 50 percent over the next five years, based on Organic Trade Association and USDA analyses. Expanding the AIT/TECRO trade arrangement provides U.S. organic farmers and processors continued access to this significant market.

The U.S. currently maintains organic equivalence arrangements with Canada, the European Union, Japan, Korea, and Switzerland.

Go forth, friends! A new organic market awaits you.

USDA

SAVANNAH, GA - It seems that no commodity is safe from the threat of criminals as yet another shipment of fresh produce has been tainted by a hidden supply of drugs. This time, officials uncovered $1.75 million worth of cocaine hidden amidst containers of oranges arriving in the Port of Savannah last month.

“As the Port of Savannah continues to see growth in volume of cargo processed each year, criminal organizations will continue to try and smuggle their poison into the U.S.,” acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama, said in a press release.

According to the news source islandpacket, 50 kilograms of cocaine was bundled within the packages of oranges. As of this Wednesday, all three of the individuals responsible for this crime have been charged.

As fresh produce gatekeepers continue to fight off those who threaten the wellbeing of our industry, keep coming back to reports from AndNowUKnow.

LA CAÑADA FLINTRIDGE, CA - Bolstering its customer relationships, Allen Lund Company is about to show out in full force at this year’s United Fresh LIVE! The transportation and logistics innovator recently released a schedule for the opening day of the conference, June 15, so industry members can learn it is so much than a truck broker.

A press release outlined the following sessions. First up is the Industry Interruptions - COVID 19 session, subtitled How Transportation Has Continued To Be Essential To The Supply Chain. Hosted by Eddie Lund, President, this session covers challenges in 2020, capacity, rates, current protests and the effects on produce, transportation, and individual companies. This will take place at 10 a.m. PST.

The next session, set for 10:45 a.m. PST is titled Resilience vs. Fear: How Are The Produce And Transportation Industries Reacting? Hosted by Bob Rose, Vice President of Sales, this session covers the variety of challenges the produce industry faces and what media’s role is in the dissemination and presentation of information to the industry.

At 11:10 a.m. PST, Eddie Lund will host the ALC Growing With The Times, Even In A Pandemic. In this session, Lund will discuss how to grow and expand business in 2020 and the strategy of Allen Lund Company entering it.

To register for United Fresh LIVE!, click here. 

AndNowUKnow will continue to bring you the latest coverage of all things happening in our industry in the lead-up to United Fresh LIVE!.

Allen Lund Company

SAN FRANCISCO, CA - The bread and butter of our industry is the creation of new partnerships. Recently, C&S Wholesale Grocers announced its own new partnership with Instacart.

“C&S is proud to provide our retail partners with the ability to move their businesses online,” stated Corey Quiring, Vice President of Retail Services at C&S Wholesale Grocers. “Now more than ever before, shoppers need the safety and convenience of online shopping and home delivery. Instacart’s services are unparalleled in providing a seamless shopping experience.”

According to a press release, C&S will help bring Instacart’s network of independent grocers onto its marketplace. Throughout, the companies will work closely to help retailers establish an e-commerce and delivery offering to meet the needs of their customers.

Once grocers are live on the Instacart marketplace, shoppers will be able to access the store via the app.

“Connecting local grocers to their customers online is incredibly important to Instacart, and the need for this has never been greater than it is today,” said Chris Rogers, Vice President of Retail at Instacart. “It’s critical that families have access to groceries and goods from the retailers they love and trust. By partnering with C&S, we’re able to bring more independently-owned grocers online and ensure the communities they serve can more easily access the household essentials they need.”

Which new industry partnerships will we unearth next? AndNowUKnow will continue to keep you in the loop.

C&S Wholesale Grocers Instacart

CHELAN, WA - Oh, beautiful serendipity. With the coming of June brings two essential aspects of our industry’s success: the cherry season in Washington State and United Fresh LIVE! This year, California provided an ideal high-quality crop of cherries to kick start the U.S. West Coast run, and, as June gets underway, cherry demand is booming. Mac Riggan, Director of Marketing for Chelan Fresh, took a beat from a dynamic whirlwind harvest to talk shop with yours truly.

“We have hit the ground running in an already tight market on premium Washington cherries!” Mac shares with me adding that there may be some potential pricing relief as we move through the middle of June. “Quality and flavor have been excellent so far, and the brix levels have been high as well. Supplies are lighter than anticipated but, as we get closer to July, there will be good promotable volumes and we are partnering with our retail customers to elevate their cherry destinations and strategize the best avenues to drive sales.”

The Washington cherry season for Chelan Fresh will run till about August 10 as it moves through the central growing regions of the Eastern Cascades from the Pasco area, Yakima Valley to Chelan/Brewster and all the way up to Oroville. Chelan grows all its cherries in about a 150- to 160-mile stretch, starting with the Chelan variety and then proceeding through the summer months with Santinas, exclusive Orondo Ruby^™ cherries, and then into Rainiers to name a few. From late June through July, Chelan will also be hitting all the Canadian varieties, including Lapins as well as Bings.

Chelan Fresh offers many tailored packaging options for retailers including 1-, 2-, 3-, and 4-lb clamshells. The company also ships 1.25-lb bags for Rainiers and 2.25-lb bags for dark sweet cherries. All options and more can be discussed virtually at United Fresh LIVE!

“We are expecting really good retailer participation at the 2020 United Fresh LIVE! event. The beauty of this virtual event is that we can have all our sales and marketing team members on hand for any needs, questions, or solutions from the buyer that might arise. This is not something we have had the opportunity to execute at a traditional trade show,” Mac expresses. “We will be able to offer a tailored retail or foodservice experience for each buyer.”

Chelan Fresh will be showcasing its KORU^® and SugarBee^® apples as well as its exclusive Rockit^™ brand program. And, of course, Washington cherries will be top of mind for the benefit of all.

If Chelan Fresh is not already on your target list, you had better shape up before this boat ships out! In other words, the Chelan Fresh experience is not one to be missed.

Chelan Fresh

FOWLER, CA - Full steam ahead for all things citrus! Bee Sweet Citrus has announced that it successfully transitioned into its annual summer program, meaning that industry partners should gear up for high seasonal demand.

"Over the past few months, our industry has seen a huge surge in demand for citrus varieties across the board," stated Joe Berberian, Sales Representative, in a press release. "As consumers continue to invest in their health and well-being, we anticipate that demand will remain steady throughout the summer months."

With a supply of Star Ruby grapefruit, Sanguinelli Blood Oranges, lemons, Valencia oranges, and Chilean Navels and mandarins, Bee Sweet's summer citrus line is diverse enough to meet everyone's seasonal needs, the press release went on to note.

The combination of domestic and offshore product also ensures that the company's "no-gap" promise is upheld, meaning that no buy-side customers are left without access to citrus. And, as always, all of Bee Sweet’s varieties are available in an assortment of packaging styles and meet the highest standards in quality and safety.

"While all of the varieties included in Bee Sweet's summer program are nutritious, each variety has its own set of unique characteristics," remarked Director of Communications Monique Bienvenue. "The versatility of our summer line can meet the needs of any niche market, while also providing consumers with the added nutrition they look for in produce commodities."

Consumers have yet to stop looking for citrus to fill their vitamin C demands, so year-round availability is imperative to meet industry demand for product.

Stick around with AndNowUKnow for the latest in all things fresh.

Bee Sweet Citrus

IDAHO FALLS, ID - The awesome potato has been a hotter category than usual as of late, with demand spiking through the spring months. As we get our foothold in June, the potato market is finding some stability for Eagle Eye Produce, though the consumer’s passion for the produce item is staying strong.

“For Eagle Eye Produce, the market as a whole has normalized and is steady after months of strong retail demand and elevated pricing. We are back to where we typically are for this time of year,” Dallin Klingler, Marketing and Communications, shares with me. “This year has been quite the anomaly for us and the industry as a whole. We are happy to see that foodservice is starting to come back online. We are in a great spot with our supply and expect a smooth transition from storage crop into the new crop as we have made big investments into storage technology over the past few years.”

These recent investments in storage technology are a big value-add for customers as they allow for Eagle Eye Produce to keep its storage crop for longer. As Dallin tells me, Eagle Eye Produce is able to stand out against other growers/shippers in the industry by continuing to supply premium Idaho-grown potatoes including reds and yellows while many others resort to sourcing from distant growing regions.

“The important thing is that we elevate the category as a whole during these uncertain times. We are hoping to see foodservice rebound now that restaurants are starting to reopen across the country,” Dallin expresses. “Foodservice demand is starting to increase as retail demand normalizes. We’re seeing good demand on all sizes, especially small-sized retail bags.”

The new crop harvest in Idaho will start at the end of July. Eagle Eye Produce will be growing several varieties of russet, red, and yellow potatoes for retail and foodservice partners.

With potatoes still riding the wave of high demand at the doors of foodservice beginning to further open, only time will tell where the market will jump to next. Then again, time in this industry passes in the blink of an eye.

Eagle Eye Produce