NOGALES, AZ - Early spring weather brings with it early demand for the products consumers crave when exposed to the warm sun. Nothing brings that heat to your produce department like the watermelon, and Cesar Pacheco, Sales Manager for Giumarra Nogales, tells me that the stars are aligned for peak demand come April.

“Our season will begin right on time around March 15,” Cesar shares. “Watermelon is a very promoteable item during the months of April, May, and June. This is due to the product volumes available combined with warmer weather, which leads to increased consumer interest around the category.”

It seems the market is lined up to be a bit tight initially, whetting consumer palates as volume begins to bounce back from some weather challenges seen in Sonora, Mexico, in previous weeks.

“Watermelon volume in general coming out of the state of Sonora, Mexico, is about 30 percent lower than last year due to weather and other supply factors. This is a desirable item, particularly during spring and summer weather, so we will probably see that reflected in the market as things warm up,” he forecasted.

It looks like volume will likely boost after those premier weeks, giving retailers the opportunity to explore the many fun ways Cesar tells me there are of promoting watermelon to consumers.

As we keep an eye on the horizon and an ear to the ground, keep following AndNowUKnow for all the latest.

Giumarra Companies

DENVER, CO - The longer I’m involved in the fresh produce world, the more I learn about the fruits and vegetables I consume. As a trade news writer, I’m now privy to a wealth of resources, including Kayla Dome, Global Marketing Manager of Retail for Potatoes USA. I recently sat down with Kayla to find out how retailers can engage with consumers to capitalize on this staple category and maximize profits.

In a recent collab, Potatoes USA tapped Kantar Insights Consulting to gather information for a Fresh Potatoes Path to Purchase study from potato shoppers at food retailers, mass merchandise retailers, club stores, and grocery online shoppers. The results?

“Potatoes are a performance vegetable. The research found 84 percent of shoppers knew they wanted to buy potatoes before they went into the store, but only 66 percent knew what type they were going to purchase, showing marketing opportunities both prior to shopping and in-store,” Kayla tells me.

The Path to Purchase study offers an in-depth breakdown of where and how consumers are interacting with fresh potato marketing to drive sales at retail.

“One interesting aspect the Path to Purchase study found was that since most consumers know they are purchasing potatoes ahead of time, secondary locations away from the primary potato location were one of the biggest driving factors in repeat purchases of potatoes,” Kayla continues. “This placement not only reminds consumers to add potatoes to their next shopping list but helps consumers decide what type of potato they are buying if it’s already on their shopping list.”

Since grocery delivery and pickup are continuing to rise in popularity, the study also focused on consumers’ online shopping activity. While only about 12 percent of consumers were purchasing fresh potatoes online, they were spending three times as much on potatoes alone as in brick-and-mortar locations. This shows the category is cementing its hold as a pantry staple.

“In our Path to Purchase study, we talk about the different ways to impact the consumers and what’s the angle that’s helpful in driving their decisions,” Kayla explains. “For instance, we’ve found when potatoes are purchased, other categories are purchased alongside them as well. These are the categories we really want to look at.”

Not only is cross-merchandising a helpful strategy, educating consumers on the nutritional value is key as well. Kayla further informs me that Potatoes USA provides great resources to help retailers educate consumers on the different nutritional values potatoes have to offer that can help facilitate a very active lifestyle.

Of course, Kayla isn’t just offering me this super spud info. Potatoes USA is providing its Fresh Potatoes Path to Purchase Study along with its Merchandising Best Practices guide, which highlights the optimal ways to market potatoes on shelves including which produce to display next to, how to organize the varieties, and what POS materials best emphasize the category. For retail help, the marketer also provides handouts and guides to aid in setting up impactful displays and drive more potato profits.

For more developments, tips, and insights in the fresh produce industry, keep reading AndNowUKnow.

Potatoes USA

SAN DIEGO, CA - Though the pressure to start this new decade off on the right foot was high, the avocado category has only thrived under this pressure. After all, if you can’t handle the green, stay out of the grove—a saying I’m only assuming circulates amongst our industry’s savvy ’cado growers. When I checked in with Bob Lucy, President of Del Rey Avocado, he confirmed the market is strong, with demand only climbing.

“High demand has been an excellent start to the year. In January and February, we met this demand by providing fantastic volume to the market. We expect this trend to continue throughout the year with strong supplies from Mexico, California, and Peru,” Bob shared with me. “Currently, Del Rey Avocado is packing California fruit five days a week, while at the same time importing good supplies from Mexico. Our California product is primarily serving our West Coast customers and our Mexican fruit is supplying our East Coast customers.”

Of this product, Bob is projecting volume from Mexico to account for five to 10 percent more of Del Rey Avocado’s supply than last year, while California’s volume should double.

“While it’s still too early to judge how this is tracking, quality has been very good from both California and Mexico. We expect excellent quality to continue through the spring and the summer,” Patrick Lucy, Vice President of Sales, explained. “It’s helped that we’ve had no major weather issues in Mexico over the course of the last couple of months. In California, it has been a bit drier than growers would have liked, and this seems to be having an effect on fruit sizing. However, we are hopefully going to get some rain in mid-March, which will help the California crop and bloom for next year’s harvest.”

As a result of the weather, smaller fruit is more available and promotable at the moment across California and Mexico crops.

“Specifically, the market is tight on 48s and larger sizes,” Bob noted. “However, we continue to expect good volume overall through the spring and summer months.”

For more market updates like this, stay tuned to AndNowUKnow.

Del Rey Avocado

SPRINGDALE, AR - When a business grows, it’s only natural that you need more space. For Harps Food Stores, the time has come to spread its wings. Recently, the grocer entered into a purchase agreement to acquire twenty stores across northeastern Arkansas and southeastern Missouri from Town & Country Grocers of Fredericktown, Missouri.

“Opportunities like this are rare,” said Kim Eskew, President and CEO of Harps Food Stores. “We are extremely excited about adding these stores to our Harps family. They will make a great addition to our company as we strive to continue to grow.”

According to a press release, the transaction remains subject to ordinary due diligence, including approval from the Town and Country shareholders. While the timing has not been finalized yet, both parties anticipate completing the transaction throughout this summer.

As part of the acquisition, Harps Food will be obtaining 10 Country Marts; 7 Town & Countrys; and one each of Cash Saver, ALPS Supermarket, and Price Chopper stores.

With the addition of these 20 locations, Harps Food will now operate 112 stores in Arkansas, Oklahoma, Missouri, and Kansas. Where else will we see Harps Food next? Stay tuned with ANUK as we uncover more retail news.

Harps Food Stores

NEWARK, DE - The Produce Marketing Association’s (PMA) Foodservice Conference & Expo is coming up in July. To tease attendee’s anticipation, the association has announced that world-renowned personality and businessman Chef Robert Irvine is scheduled to keynote in Monterey, California. I can say on behalf of everybody, this is an event that you won't want to miss.

During “A Morning with Robert Irvine” on Friday, July 24, the high-energy chef and TV personality will inspire attendees with healthy food tips, eating habits, and the passion he brings to everything he does. He’ll share insights on setting clear goals, the significance of image, and the importance of quality. According to the press release, Irvine will also serve as the celebrity judge for PMA’s 2020 Foodservice Lunch Competition, which will feature guest chefs preparing tasty, inventive, and produce-centric recipes using sponsor products. Irvine will present the second-annual PMA Produce Plate Award on-site to the winning chef and product sponsor. Attendees will vote for their personal favorite as well, and PMA will present a People’s Choice Award.

“The eat-more-plants movement, no matter what form that takes, is gaining momentum,” said Nichole Towell, Senior Director of Marketing for Duda Farm Fresh Foods and PMA’s Foodservice Conference & Expo Co-Chair. “PMA’s event is where menu developers, foodservice providers, and other influencers can get the best access to suppliers, potential partners, and other innovators at the forefront of bringing good-tasting, good-for-you food, and flavor combinations to diners of all ages and in each segment of the industry. You can’t get access to this many key players in foodservice and produce anywhere.”

After the Lunch Competition, delicious eats, and award presentations on July 24, PMA’s Chief Marketing Officer Lauren M. Scott will dive into what’s hot in foodservice and culinary and where produce can shine. Her “Insights and Innovations of Tomorrow” session is a precursor to smaller break-out discussions where participants will explore the topic further with industry leaders and come away with actionable ideas.

In addition to the conference and expo, activities include Center for Growing Talent’s Bocce for Talent Tournament Wednesday, July 22; Center for Growing Talent Golf for Talent in Honor of Joe Nucci on Thursday, July 23; and Center for Growing Talent 5K Race for Talent on Saturday, July 25.

Invite-only events include the Center for Growing Talent Contributor and Volunteer Reception and PMA’s Foodservice thinkTANK, a gathering of foodservice thought leaders charged with discussing critical issues facing the industry and serving as catalysts to increase produce consumption and help reach the goal of making produce #HalfThePlate.

For a complete schedule, more details, and to register, visit PMA’s Foodservice event page. Keep reading AndNowUKnow as we bring more news leading up to the event.

Produce Marketing Association

SAN DIEGO, CA - In my early 20s, I loved living near the ocean in the sandy city of San Diego and felt so lucky to call the Golden State my home. One of those most sought-after spots in the city was the San Diego Zoo where you could get lost in another world and be inspired by the nature around you. Crunch Time Apple Growers is also taking up this inspiration as its apple with the Monster Crunch, SnapDragon Apples, and the San Diego Zoo partnered to create a unique experience.

“There was a ton of traffic and everyone who tried a SnapDragon loved them. Some people noted the spicy-sweetness and incredible crunchiness. Most, if not all, of our consumers who tried the apple became instant fans and asked where they could purchase,” said Sara Wells, Marketing Generalist for Crunch Time Apple Growers.

Sara—who manned the extravaganza and one-of-a-kind pop-up event that shared the apple’s signature ‘crunch’ with California consumers—brought excitement and education to the crowd.

This unique event was positioned at the entrance of the zoo and over 4,000 consumers tasted SnapDragon Apples, according to a press release.

“The opportunity to partner with the San Diego Zoo and reach thousands of apple lovers in California was truly exciting,” Rena Montedoro, Vice President of Sales and Marketing, Crunch Time Apple Growers, shared. “These types of events help us show retailers out West that New York apples are delicious and consumers want them."

In addition to the live pop-up event, Crunch Time is also hosting an online sweepstakes, which runs through March 31, 2020, allowing all SnapDragon fans the opportunity to win a fabulous vacation for four to the San Diego Zoo, according to Montedoro. This sweepstakes provides a great opportunity for retailers to tap into the excitement around the variety.

The winner will receive four tickets to the ‘Animals in Action’ tour, with tickets provided by the San Diego Zoo. On top of that already coveted prize, Crunch Time will provide hotel expenses for the winners along with a delicious box of SnapDragon apples, SnapDragon apparel, and up to $1,000 in airfare.

“This family-oriented, high-traffic West Coast destination allowed us to sample one of New York’s hottest apples. It just shows retailers SnapDragon can compete with any other managed variety apple out there—and win over consumers,” noted Wells.

Where there are apples there are opportunities—whether at retail or the San Diego Zoo!

Crunch Time Apple Growers

LONDON, ENGLAND - Tesco recently announced its official exit from the Chinese market, touting a deal worth roughly $357 million USD. The British retailer recently dropped another hefty number to add to its arsenal, announcing a deal worth over $10.6 billion that will divest 2,000 of the retailer’s retail outlets in Thailand.

According to The New York Times, this is the retailer's first interaction with the Thai business entity. Tesco selected Chirathivat family's Central Group of Companies’ (CP Group) banner leading 12,000 7-Eleven c-stores in Thailand to take over the locations. While this deal has been launched into its final stages, details are still unclear as to how CP Group plans to merge with its new assets.

How will this strategic market exit position Tesco for further growth? We can’t say for sure, but AndNowUKnow will continue bringing you the latest news in grocery retail.

Tesco

WOONSOCKET, RI - Recently, we reported Schnucks Market had acquired Mahomet IGA. It appears the retailer hasn’t lost its momentum as news reports Schnucks recently closed an agreement with CVS Pharmacy. CVS Health Corporation and Schnuck Markets announced that CVS has acquired Schnucks retail and specialty pharmacy businesses.

“As Schnucks continues to expand our emphasis on health and wellness, this collaboration with CVS is an opportunity for us to align with a company that has a similar focus,” said Todd Schnuck, Chairman and Chief Executive Officer of Schnucks. “This partnership allows us to continue to provide quality pharmacy services to our customers in a manner they’ve come to expect while supporting our mission to nourish people’s lives. It also provides our pharmacy teammates an opportunity to further their careers with a premier retail pharmacy chain.”

According to CVS Pharmacy’s press release, CVS and its subsidiaries will acquire and operate 99 of the grocer’s pharmacies and will rebrand them as CVS Pharmacy. Additionally, CVS Pharmacy and its subsidiaries will acquire the prescription files from 11 Schnucks pharmacies and transfer them to nearby CVS Pharmacy locations.

With consumers nowadays focusing more on wholistic health—with fresh produce front and center—having the convenience of a retail pharmacy will aid in retaining shopper loyalty. This strategic relationship brings together one of the leading grocers in the Midwest region with CVS Pharmacy’s innovative pharmacy services and clinical expertise to enhance the overall health care experience and continue to provide a convenient option for Schnucks customers. The relationship also provides CVS Health with a capital-efficient way to expand into key areas.

“We have great admiration for Schnucks and believe CVS Pharmacy can bring additional clinical services to its customers. One of CVS Health’s strategic imperatives is to Be Local. By opening CVS Pharmacy locations within Schnucks stores, we’re increasing access to high-quality care and meeting customers where they are. Schnucks is a best-in-class grocer and we’re honored to partner with them to bring our best-in-class pharmacy capabilities to its customers,” said Jon Roberts, Executive Vice President and Chief Operating Officer, CVS Health.

The transaction is expected to be completed by the end of the second quarter and is subject to customary closing conditions.

For more retail news, keep an eye out for AndNowUKnow in your inbox.

Schnuck Markets

IRVINE, CA - Good morning, AndNowUKnow readers!

Today, I am bringing you some of the category and weather news from around the industry. Check back twice weekly to see the latest around all growing regions.

RAIN BEGINS IN CALIFORNIA AND NORTHERN MEXICO

Rain began late last night throughout the state, stretching from Salinas at the northern end down to Vizcaíno, Baja California Sur, Mexico.

The rain hitting southern California and northern Mexico is coming up from the southern Pacific bringing thunder, high winds, and warm temperatures. There will not be any cold temperatures associated with this storm like one would see from a typical winter storm coming out of Alaska.

Look for rain totals well over 1” in coastal areas such Oxnard, Irvine, and Baja Mexico. Coachella Valley is predicted to receive .50”. Although tomorrow will be the heaviest rains, there is a chance on Wednesday and Thursday as well throughout the state.

Ciudad Obregón in the state of Sonora, Mexico, may see some rain on Thursday. This is a big spring shade house growing region for tomatoes and other vegetables.

HEAT RETURNS TO FLORIDA

After cooler temperatures in Florida over the weekend, the heat will return later this week. By Thursday, look for maximum temperatures in Belle Glade to be in the mid 80°s, which will peak over the weekend with maximum temperatures close to 90°.

Immokalee will warm as the week goes along, reaching a maximum of 92° on Sunday. Expect maximum temperatures to remain in the 90°s well into next week.

Even Plant City will get in on the action with highs in the low 90°s this weekend and most of next week. Look for strawberry production to possibly tick up next week.

The peach growing regions of Florida will also see warm temperatures this week with highs in the upper 80°s and low 90°s. Keep an eye on peaches starting soon.

CULIACÁN COOLS OFF A BIT THIS WEEK

Today will be the hottest day of the week in Culiacán with a high of 96°. Tomorrow will be 95°, and on Thursday, look for maximum temperatures in the upper 80°s for the rest of the week. Look for production to continue being strong.

MEXICAN BERRY REGIONS TO EXPECT PERFECT WEATHER

Central Mexico berry growing regions are all experiencing nice weather right now. The states of Jalisco, Michoacán, and Guanajuato are all experiencing highs in the mid 80°s and lows in the mid 50°s without any serious chances of rain.

YUMA MAY SEE UP TO .25” OF RAIN TODAY

Yuma may receive up to .25” of rain today as part of the same storm system affecting southern California and northern Mexico. Shouldn’t be much of an issue for them.

Thank you as always! We will be back this week with another report.

Weathermelon

NOGALES, AZ - Land is one of the most integral aspects of the produce business, and as such, state government often works in partnership with growers and associations in order to fortify the land we require to get the job done. The Fresh Produce Association of the Americas (FPAA) along with Arizona Governor Doug Ducey and organizations from across the state recently celebrated the groundbreaking of a massive overhaul to State Route 189 in Nogales, Arizona. At an event on March 4, almost 200 people came together to celebrate this $134 million investment for Arizona.

“The road improvement will make sure our roads operate at the speed of business, creating an efficient flow of trade and travelers from the Mariposa Port to I-19,” said Lance Jungmeyer, President. “This project reduces transit time from the port of entry to local warehouses, giving companies a valuable incentive to locate their operations in Nogales.”

SR 189, also known as Mariposa Road, is the main thoroughfare for trucks crossing the Mariposa Port of Entry in Nogales and heading northbound on I-19 to area warehouses. According to a press release, the funding package leverages state, federal, City, and County funding that make up the entire $134 million price tag.

“This is a project we have been working on for many years. It is exciting to see this come to fruition especially since this is one of the largest transportation improvement projects in our state,” said Scott Vandervoet, Chairman and President of Vandervoet & Associates. “The benefit this will bring to the produce industry is hugely important as we strive to maintain our competitive advantages.”

The City of Nogales and Santa Cruz County are committing approximately $45 million over the course of several years from their share of a fee paid by produce trucks crossing the border. The State Legislature committed $25 million of general fund money to this project. The road is also recognized as vital on a Federal level, and the project received an investment of $25 million through the award of a Federal Tiger Grant.

More than 2,000 trucks a day use this route, and the improvements should save more than 10 minutes per northbound truck, according to the Arizona Department of Transportation. “This is huge systems savings. It reduces emissions and makes the whole supply chain more efficient,” Jungmeyer added.

The project will fund important enhancements to the entire length of SR 189 and will also construct a flyover ramp connecting SR 189 to I-19, which eliminates stoplights and left-hand turns that currently hamper movement of heavy trucks onto the interstate.

“We are excited about the positive benefits this will bring to our members in the form of faster, safer, more reliable deliveries to their warehouses,” Jungmeyer continued. “Ultimately this is major win for our customers and the end consumer because we will have faster deliveries of the fresh, high-quality produce that Nogales is known for.”

The project is also designed as a crucial safety measure by separating the ingress and egress of local high school traffic from the intersection where it meets with the commercial traffic on SR 189.

“We know that better roads mean a better future for Arizona,” said Governor Ducey in a release from the Arizona Department of Transportation. “The improvements along State Route 189 will improve safety, enhance trade, and foster an even stronger relationship with our neighbors in Mexico. With record trade already with Mexico, my thanks to the Arizona Department of Transportation, our partners in Mexico, and everyone working to improve our infrastructure and attract even more trade through our ports.”

For more news as it pertains to the fresh produce and retail industries, keep a tab open for us at ANUK.

The Fresh Produce Association of the Americas