RIO RICO, AZ - The transition from fall to winter is upon us, and growers are looking at their bottom lines to evaluate the 2019 market. Finishing up the fall season and preparing for winter, Mas Melons & Grapes has seen steadily excellent quality on its honeydews and watermelons all year long. The company will soon be closing up shop in Caborca and Hermosillo, Sonora, Mexico, and transitioning to southern west Mexico in the states of Colima and Nayarit. To find out how Mas Melons is faring this time of year, I tapped Miguel (Mikee) Suarez Jr. of Sales.

“In the fall, we typically offer honeydew melons, conventional watermelons, and mini watermelons from early October to mid-December,” he told me. “However, due to some heavy early rainfall from tropical storm Lorena, we had to end our watermelon season earlier than expected. Our honeydew melons were not affected by this rain as much and still have high quality from new fields in Hermosillo.”

Although volume of all varieties at Mas Melons was affected, the high quality was maintained. The honeydew melon brix was slightly below average due to the rain brought on by storm Lorena, ranging from 9.6 to 11.2 in rating. Despite this, the company is rarin’ to go ahead of its upcoming season in Mexico.

“Our fall northern Mexico season will wrap up in mid-December. In late December/early January, our Tecoman, Colima, and Santiago Ixcuintla, Nayarit, productions will begin,” Miguel explained. “We will have honeydew melons, conventional watermelons, and mini watermelons to offer throughout the winter months before concluding in mid-April and transitioning back to our northern Mexico production.”

To see how others in the industry are preparing for a new chapter, keep reading AndNowUKnow.

Mas Melons

ISSAQUAH, WA - As the popularity of plant-based foods continues to rise, many retailers are seeking to tap into that market. Costco is expanding its portfolio of plant-based meat offerings with a number of partnerships, first with Don Lee Farms, and now Nestlé, to sell the food company’s Awesome Burger products.

Select Costco locations in Texas and the Midwest started selling the Awesome Burger patties last month, leaving many to wonder when the retailer will kick off a nation-wide launch. According to a report from LIVEKINDLY, the patties are being sold in bulk; each Awesome Burger box contains six quarter-pound patties and retails for $10.79. No word has sprung up yet, but as readers of DMN know, we’re always on the lookout.

Nestlé-owned brand, Sweet Earth, produces the Awesome Burger, which is made using yellow pea proteins and wheat gluten. The company noted that each burger contains more protein and fiber and less saturated fat than beef.

Will Costco continue to diversify its plant-based product offerings? Keep reading AndNowUKnow for updates.

Costco Nestlé

IRVINE, CA - As the world of global trade continues to evolve, produce industry members keep their ears to the ground to stay informed of the deals and negotiations that can impact their trade with other countries. A new trade pact between the U.S. and Japan has been approved by the latter’s parliament, opening the country’s market up to American agricultural trade, Bloomberg reports. As a valued member of the industry, Tom Nassif, President and CEO of Western Growers, has weighed in on the agreement.

“With Japan’s parliamentary approval of the U.S.-Japan Trade Agreement, the final hurdle for the deal to take effect on January 1st of 2020 has been cleared,” he commented in a statement. “Western Growers appreciates the prompt action by the Japanese Diet, which will eliminate tariffs on a number of American fruit, vegetable, and tree nut products and pave the way for significant export opportunities for our members.”

According to the news source, the deal was approved on Wednesday and the U.S. is hoping the agreement will come into force by January 1.

“Western Growers extends its continued support to President Trump for his leadership in pursuing fairer deals for American farmers in Japan and other countries around the world,” Nassif said. “We urge President Trump to follow through on his pledge to engage Prime Minister Abe in further trade talks to address additional barriers to trade. Chief among our remaining concerns are the non-scientific sanitary and phytosanitary measures that will continue to prohibit many American fresh produce items from entering Japan. No trade deal will be complete without these reforms to the Japanese importation system.”

AndNowUKnow will continue to deliver updates on agriculture-centric trade.

Western Growers

NEW YORK, NY - Dollar General is going all in on expansion in 2020. It initiated expansion of its fresh produce offerings and distribution back in July, and we reported in September that the company planned to construct new stores in Washington and Wyoming, upping its national presence to 46 states. After a quarterly financial report was released yesterday, we learned that Dollar General now plans to open a total of 1,000 stores next year. Following several years of aggressive growth strategies for the company, 2020 is shaping up to be an exciting year.

With over 16,000 stores and counting, Dollar General has positioned itself as tough competition for big-name retailers across the industry. The report stated that stores that have been open for at least a year experienced increased sales this quarter, touting 4.6 percent growth in the same period last year. Over the last two years, its stock has climbed by 50 percent, and this year alone, profits increased by 11 percent. This growth is likely due to the company’s movement into new cities while maintaining growth in previously established regions.

To read the company’s financial report in full, click here. Only time will tell how Dollar General will continue on such a successful trajectory. To read the latest updates in the retail sector, stick with us at AndNowUKnow.

Dollar General

ISSAQUAH, WA - When you have big ideas, you want to be heard. When you just so happen to be the CEO of Vanguard International, you will be heard. Craig Stauffer, CEO of Vanguard, took pen to paper for a new initiative the company is dubbing “From the CEO’s Desk.” And what, pray tell, moved the CEO to write his thoughts out? Edible peels.

“We’ve been using plastic in produce aisles for decades—and for good reason,” Stauffer started off in his letter. “Of the 78 million metric tons of plastic packaging produced globally each year, a mere 14 percent is recycled. Nine million tons of that plastic escapes collection annually.”

Stauffer mentions that plastic has provided a solution for so many functions within the produce industry that it becomes nearly impossible not to rely on it, such as:

• Growers, distributors, and retailers alike to cut down on food waste;
• Consumers to see the colorful, fresh produce they’re purchasing;
• Growers to brand their produce and add additional attractive selling features on package;
• Retailers to charge per package (scannable UPC codes) versus per pound or per kilo (commonly referred to as random weight) and offer the ever-important convenience items like ready-made salad bowls and pre-cut veggies.

Therefore, it’s becoming increasingly important to understand how this is affecting our global environmental footprint as an industry, and shift focus to sustainable alternatives.

“We’ve seen efforts to cut plastic waste from top seal innovation, led by strong players in the industry like Oleen Smethurst, GMM for Produce at Costco Canada,” Stauffer continued. “I’ve seen firsthand how passionate Oleen is about reduction of waste. She has been a driving force of top seal implementation across the produce industry, aligning with the growing drive in North America towards sustainability.”

Top seal allows for the same quality and freshness to be delivered in packaging using 25 percent less plastic, promotes longer shelf-life, and allows for easier stacking to reduce transportation costs. Oleen continues to advocate for this innovation from vendors at Costco Wholesale Canada, setting an example for a whole industry on how these are current problems, with current solutions.

But what about the edible peels? Greenhouse growers Houweling’s and Apeel Sciences were showcasing a Long English Cucumber that ditches the plastic wrap, instead using a plant-based edible peel.

“Apeel Sciences is an innovation company focused on reducing food and plastic waste. They have developed products for USDA Organic Certified and worked with partners ranging from small farmers and local organic growers to some of the world’s largest food brands,” Stauffer elaborated. “They use plant-derived materials that exist in natural peels of fruit and vegetables, seeds, and pulp, to create packaging solutions that are both edible and protective enough to replace the need for plastic. They aim to double or triple the shelf life of numerous types of produce, which promotes sustainable growing practices, better food quality, and less waste!”

Another alternative that Stauffer is keen on is corrugated packaging. Corrugated boxes are made from a high amount of recycled material and can be recycled again after use.

“What the leading packaging of produce looks like in the future is still not entirely clear, but the industry is certainly talking about the issue of waste more than ever before. We are actively involved in these conversations, and will share more in 2020 around our own packaging developments and evolution,” concluded Stauffer.

We at ANUK are equally eager to hear more from the industry and Stauffer on the issue. Keep following us as we continue to report on the latest.

Vanguard International

MONTEREY, CA - Agriculture is a community bound by more than just the act of growing something from the earth’s soil. When we come together for events like the Organic Grower Summit, nowhere else is this fact more obvious. We are a community that spans generations, languages, and borders, and when we gather together, we form a mosaic of the ag community at large—and the mosaic depicted at the third-annual Organic Grower Summit was one rich in advocacy, innovation, and organic ingenuity.

After attending this year’s event, it’s easy to understand why so many cultures view the number three as the luckiest of them all. The third-annual OGS was a verifiable stand-out, with some of the organic sector’s most passionate, knowledgeable, and inventive purveyors transforming Monterey, California, into a drawing board for the industry’s future. From endless opportunities to rub elbows with some of produce’s leading organic growers to exclusive events showcasing the power of produce, OGS 2019 was the perfect industry event to close out 2019—and the decade!

“With the organic fresh food category reaching multi-billion-dollar levels, there has never been a better time to create an intimate and engaging event focusing exclusively on organic farming,” Tonya Antle, Co-Founder and EVP, Organic Produce Network, shared with me. “The Organic Grower Summit creates the opportunity for growers and allied service suppliers to look towards the future while networking and growing their businesses together.”

This year, exhibitors and attendees showcased the best the organic industry has to offer, with 30 states represented at the third-annual event. On the show floor, some of produce’s most important partners showed up and showed out.

“I’m always willing to seek and learn more about California’s thriving organic community. From new and innovative technologies to growing practices, resources, innovations, and networking opportunities—we are appreciative of what the Organic Grower Summit has set out to achieve to benefit our organic farmers,” said Catalino Martinez, COO of Val-Mar Farms.

As the ANUK team meandered through the rows of booths, we saw the latest packaging launches, tech and logistics inventions, and sustainable initiatives that the produce industry as a whole should be proud of.

“It was a tremendous first day at OGS that featured a pair of engaging and highly informative education sessions related to soil health and technology opportunities for the organic community,” Matt Seeley, CEO of the Organic Produce Network, shared with us after the first day of activities. “The sold-out trade show was very active throughout the day, and the opening reception was packed from start to finish. We continue to hear how great the intimacy of OGS is and how the networking opportunities are first rate.”

OGS kicked off its two-day organic de force with mornings chock full of education sessions. Growers like Naturipe Farms, industry advocates like the California Leafy Greens Marketing Agreement, and even retailers like Walmart were all represented on stage Wednesday and Thursday morning. Many of produce’s brightest minds shared their insight on the hottest industry topics—and I for one am driving away from Monterey with a notebook full of takeaways.

“It’s great to have a conference focused on organic farming and the challenges and rewards we all share. We’ve been excited to participate in the first three years and hope the Organic Grower Summit will continue for many years to come,” said Ben Diesl, Grimmway Farms’ Vice President of Quality Assurance.

Tim Borel of Nunes/Foxy/Blanco Farms added, "Each year the OGS improves. This year, I was impressed by the new perspectives brought by attendees from burgeoning organic sectors. As organics continue to grow, we as producers will always need fresh ideas to fill that growth. The OGS is the perfect place to find these new ideas."

Some of the key takeaways from this year’s panel sessions were regarding some of produce’s hot button topics, like food safety and sustainability. Experts across the supply chain discussed solutions with each other and those in attendance, putting into practice two of the most important solutions: education and collaboration. Many touched on how we can share growers’ stories, relaying the hard work our industry’s backbone puts in to meet consumers’ biggest demands like traceability and sustainability and commemorating their accomplishments in going the extra mile until the last mile.

“The Organic Grower Summit is a great event that brings growers together to network, share best practices, and learn from one another in a small, intimate setting. Because we’re all going to be asked to participate, specifically in the area of sustainability, I like that the Organic Produce Network has initiated these panel sessions to stimulate conversation,” Nikki Rodoni, Founder and CEO of Measure to Improve, shared with me following the panel she moderated. “People are very passionate, and these conversations really help us gather the tools, practices, and initiatives to take a proactive approach, so that looking forward, we know what’s coming and how to work with suppliers and vendors to solve these issues.”

One of the most talked about events at this year’s trade show was the exclusive showing of Driscoll’s The Last Harvest documentary. It was a standing-room-only affair at the Monterey Conference Center as everyone moved from the show floor to their film seats. Following the screening, Soren Bjorn, Driscoll’s President of the Americas; Dave Puglia, Incoming CEO of Western Growers Association; Hannah Freeman, Co-Founder and CEO of Ganaz; and Carmen A. Ponce, Tanimura & Antle’s Vice President and General Counsel of Labor, took to the stage to answer attendees’ most pressing questions regarding the labor crisis.

“One of the fastest growing parts of our business is the organic business,” Soren shared with me following the screening. “We’ve always been a company that’s made up of a lot of small farmers, and a lot of small farmers focus on growing organic, so the Organic Grower Summit provides the opportunity to introduce those small farmers to us and us to them. I think that’s what makes this such a great show, along with its focus. OGS is also a great opportunity to talk about some of the big issues facing our industry.”

Closing out this year’s show with a keynote presentation for the books was Titan Bioplastics’ Amy Ansel, Indigo Agriculture’s David Perry, and Beneficial State Bank’s Kat Taylor. Each speaker gave Ted Talk-style presentations that touched on a few of the latest exciting opportunities in the organic sector.

“Where else can you go to get all the organic growers and suppliers in one place to gain insight and education into our industry? OGS continues to impress, and we look forward to growing with it,” highlighted Bart Walker, President of Pacific Ag Rentals.

Monica Casillas, CEO of Ferti-Organic, added, “The Organic Grower Summit is good for us because it is a really focused show. This is the only show we attend. The visitors are really high-end.”

How OGS 2020 will top OGS 2019, I do not know! But if there’s one thing I’ve learned in my two years in produce, it’s that the industry is always ready with a surprise up its sleeve. From the looks of the current produce landscape, my money is that next year’s surprise will be robots.

Until then, produce industry family!

Organic Grower Summit

EBINBURG, TX - South Texas’ harvest is underway and that means that we humble trade news writers have hit the ground running scouting out the best produce news. For me, I was lucky enough to sit down with Trent Bishop, Vice President of Sales at J&D Produce, to find out about the grower, packer, and shipper’s retail programs and more.

“I would like to share with buyers that we stand ready to partner with them!” Trent expressed immediately. “We can customize regional, seasonal, year-round programs to suit their needs. Whether it’s in our Little Bear label, or their proprietary brand, we are serious about earning their business and adding value to the categories we participate in.”

Currently harvesting its entire line of greens, herbs, broccoli crowns, cabbage, and onions, J&D Produce experienced some unseasonably hot weather. This, combined with cold snaps in the Northeast did amount to a supply shortage as it went into the Thanksgiving holiday pull, but Trent is optimistic about the weeks to come.

“We seem to be in a constant state of growth here at our facilities, constantly updating and adding to the space necessary to operate efficiently,” he shared with me. “This progression and evolution is thanks to the customers that have placed their trust in us and allowed us the opportunity to partner with them with our supply.”

Trent ended our conversation with a teaser of things to come, but it’s not yet ready for industry ears, folks! So stay tuned with us at AndNowUKnow for the latest.

J&D Produce

BRONX, NY - The winter holidays are the time of year when the best of the best truly rise to the occasion, and D’Arrigo New York is one of those companies providing a rising tide to lift all boats. As we move toward Christmas and New Year’s, the family-owned full-line wholesale produce distribution enterprise is providing tips and best practices for its customers and coveted client mix.

I asked Gabriela D’Arrigo, Vice President of Marketing and Communications, what insights she has as we break into December and, as always, she did not disappoint.

“Keep an eye on culinary trends. Most consumers capitalize on these during the holiday season, and suppliers and retailers alike can partner to build merchandising opportunities to feature products in space not traditionally held by fresh produce—or vice versa,” she tells me.

Gabriela also notes that it is essential to take a look at volumes from the previous year, especially with staple items.

“The classics are classics for a very good reason,” she expresses. “And as always, communicate with your suppliers. They hold the keys to success at retail.”

Some of the key categories that D’Arrigo advises have been top of mind for retailers during the holiday run are mushrooms, Brussels sprouts, squash, cranberries, herbs, and salad blends, just to name a few. So make sure that you have checked the list...twice.

D'Arrigo NY helps its partners harness the sales and promotional opportunities of the season by continuously engaging in communication with both its suppliers and customers. There are always items that are in excess come holiday season and it’s a great opportunity for everyone to move product and make money, Gabriela adds.

Do you hear that? We do. It is the ring at the register.

D'Arrigo New York

CINCINNATI, OH - Earlier last month, we reported Kroger had undergone a major brand facelift. The grocer claims it was putting a more focused effort on its grocery business, and that the new look was to break through the grocery retail industry’s “sea of sameness.” Well, it looked like it worked. In its Q3 financial results, the grocer reported positive results alongside intriguing news that it plans to part ways with Lucky's Market.

Kroger invested in the upstart natural foods chain Lucky’s Market in 2017, but has since decided to divest its interest in the chain. The retailer said the decision to divest followed a portfolio review. Of the impairment charge, $131 million will go into Kroger's pocket.

“Kroger's customer obsession and focus on operational excellence continued to generate positive results in the third quarter. Identical sales were the strongest since we started Restock Kroger, and gross margin rate, excluding fuel and pharmacy, improved slightly in the quarter. At the same time, we continued to reduce costs as a percentage of sales,” commented Chairman and CEO Rodney McMullen.

Highlights from the quarterly included:

• Total company sales were $28.0 billion
• Alternative profit streams are on track to contribute an incremental $100 million in operating profit in 2019 versus 2018
• Adjusted EPS of $0.47 which includes a $0.03 out of period charge
• Achieved Operating Profit of $254 million
• Adjusted FIFO Operating Profit of $653 million EPS and Operating Profit results affected by several adjustment items, primarily by a non-cash impairment charge related to an investment in Lucky's Market
• Alternative profit streams on track to contribute an incremental $100 million in operating profit in 2019 versus 2018 confirms identical sales
• Adjusted FIFO Operating Profit and Adjusted EPS guidance for 2019 and 2020

“We are using the power of Kroger's stable and growing supermarket business to create meaningful, incremental operating profit through the alternative profit stream businesses, which adds up to a business built for long-term growth that generates consistently attractive total shareholder returns,” continued McMullen. “Kroger continues to generate strong and durable free cash flow as reflected by the fact that the company has reduced debt by $1.5 billion over the prior four quarters and continues to increase its dividend to create shareholder value.”

One thing is for sure, it looks like Kroger will be starting 2020 on a strong foot.

“Restock Kroger is the right framework to reposition our business to create value for all of our stakeholders, both today and in the future,” concluded McMullen.

To see the full results of the financial, click here. Keep following us here at AndNowUKnow as we bring you more updates on retailers.

Kroger