SACRAMENTO, 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.

COACHELLA VALLEY TEMPERATURES TO DIP INTO MID-30°s NEXT WEEK

Current temperatures in the area are nice with highs in the mid-70°s and lows in the upper 40°s. Come next Monday and Tuesday, temperatures will cool off as maximum temperatures will only reach the low 60°s and minimum temperatures will dip into the mid-30°s. These temperatures will probably not have any affect on the broccoli and lettuce coming from the region but could slow down the production of colored bells. Please check with shippers to see if they expect any slowdowns.

POTENTIAL RAIN COMING TO COASTAL CALIFORNIA ON THE 21^st

Strawberry growing regions of Santa Maria and Oxnard are currently experiencing beautiful growing conditions with maximum temperatures in the upper 60°s and minimum temperatures in the low 50°s. These temperatures will continue through all of next week. Come next Saturday the 21^st, there is a decent chance of rain forecasted. We will keep you updated next week.

COOLER TEMPERATURES COMING TO NORTHERN HALF OF FLORIDA NEXT WEEK

Weather this week in the strawberry regions of Florida was perfect with maximum temperatures around the 80° mark and minimum temperatures in the upper 60°s. This stable weather will continue through next Tuesday until a storm comes through bringing rain and cooler temperatures. Expect up to .25” of rain with maximum temperatures in the 60°s and minimum temperatures in the 40°s. There is an additional chance of rain for Saturday the 21^st.

CENTRAL MEXICO BERRY REGIONS EXPERIENCING PERFECT WEATHER

The berry regions in the states of Michoacán, Jalisco, and Irapuato are all experiencing typical weather for this time of year. Maximum temperatures are hovering around the 80°s while the minimum temperatures are in the mid-40°s. Last week, Mexico shipped 80 loads of tomatoes and look for volume to pick up more steam into Christmas.

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

Weathermelon

OHIO - A year can fly by, but for those of us in the produce industry, a year can pass by in what feels like a blink. It seems like only yesterday we reported on Aldi’s expansion into Ohio, noting its rapid-fire expansion across the country all the way back in February. Nearly a year later, the grocer continues to saturate that market, opening up two new stores—and remodeling one—in Northeast Ohio.

In a report by Crain’s Cleveland Business, Sam Climer, Aldi’s Director of Operations for the Cleveland, Akron, and Canton market, noted to the news source that the two new stores in Northeast Ohio are the grocer’s fourth and fifth stores to open just this year. The number of units now totals to 60 in the area.

He remarked that “there’s always opportunity to grow” as shoppers continue to hit the market looking for high-quality products at competitive prices. Not only does Aldi offer steeply discounted items due to its large assortment of private-label offerings, the stores are designed specifically to give customers a “streamlined shopping experience.”

This growth plays into Aldi’s aggressive plan to expand to 2,500 stores by the end of 2022, and to add 25,000 jobs to the workforce.

Which other markets will Aldi start flooding? AndNowUKnow will keep its eyes on the retail market as we head into 2020.

Aldi

EDEN PRAIRIE, MN - Robinson Fresh, a division of logistics provider C.H. Robinson, recently announced the promotion of Michael Castagnetto to President. He will succeed Jim Lemke who retired earlier this year and will report to C.H. Robinson President and CEO Bob Biesterfeld.

“I’m proud to lead a team of people with deep industry knowledge who our customers can rely on,” said Castagnetto in a recent statement. “I look forward to continuing to evolve fresh supply chains and ensure our customers have the products, services, and information they need to drive smarter solutions.”

A press release noted has been with C.H. Robinson since 2005, during which he has held various leadership roles including General Manager of the Tropical and Dry Vegetable Categories, Director of Global Supply, and Vice President of Global Sourcing. Prior to that, he was a Sourcing Manager at Food Source, which was acquired by C.H. Robinson. Throughout his career with the company, Castagnetto has been a key player in the evolution of the company’s fresh business into one of the leading supply chain product and services companies in the fresh food industry.

“Michael has a passion for serving customers and ensuring the success of our employees. He is a strong leader with a proven track record of establishing successful teams built on trust, common goals, and communication. His many years of leadership across all aspects of the business position him well to lead Robinson Fresh into the future, and I’m pleased with his appointment to this role,” concluded Biesterfeld.

Congratulations to Michael on this new role. AndNowUKnow looks forward to hearing more news from C.H. Robinson and Robinson Fresh!

C.H. Robinson

CHINA & U.S. - China and the United States have been going back and forth on plans for trade deals and tariffs between their economies. Following threats from China and several appeals made by U.S. companies to the Trump administration, the two announced this morning that they have entered phase one of a monumental deal. Details of this deal are currently few and far between, but signs point to a promising turn of fate for those operating between China and the U.S.

According to CNBC, the two countries have reached a trade deal that is expected to provide relief on tariffs as well as increased opportunities for agricultural purchases. Additionally, rumored structural changes will include intellectual properties as well as technological challenges. While not many details were disclosed, Chinese officials briefed reporters and the U.S. President touted the agreement as an “amazing deal.”

“President Trump is following through on his promise to rebalance the relationship between the U.S. and many of our global trading partners. In the wake of the early harvest trade deal with Japan and the U.S.-Mexico-Canada Agreement, the phase one trade deal with China represents another encouraging step forward in the effort to level the playing field for American farmers in this important market,” Western Growers President & CEO Tom Nassif said in a recent statement. “We are excited to hear from the Administration that the deal is to include not only substantial increases in agricultural purchases by China and a return to normal, but also commitments to address China’s non-tariff barriers. Non-scientifically based sanitary and phytosanitary (SPS) standards have been used too often to deny access of American product to the Chinese market, and we’ve long urged that this problem be resolved. We look forward to reviewing additional details of the phase one deal and working with the Administration to ensure the deal delivers wins for our fruit, vegetable and tree nut growers.”

While Nassif said that many farmers understand short-term pain must sometimes be endured to achieve long-term gains, no amount of government aid can make up for lost market shares or displacement by competing suppliers. For this, the Western Growers Association urged the Administration to quickly finalize and implement this deal, “bringing us one step closer to restoring market access and getting back to normal for American fruit vegetable and tree nut producers.”

From what is currently available, we understand that the U.S. will relieve tariffs placed on Chinese goods in phases, which the news source stated was a priority for Vice Commerce Minister Wang Shouwen of Beijing. Shortly afterward, the Trump administration stated that the next round of tariffs will be canceled by Sunday.

Further details include the U.S. plans to leave 25 percent tariffs on $250 billion imports, while cutting duties on $120 billion worth of products to 7.5 percent. The news source stated that China is also considering a cancellation of Sunday’s tariffs.

Beijing’s Vice Minister of Agriculture and Rural Affairs, Han Jun, said that agricultural purchases are also expected to increase significantly. As part of the deal, the U.S. President insisted on the Chinese purchase of American crops, according to tweets. Furthermore, both countries plan to make adjustments to intellectual properties, technology transfers, and financial services, according to CNBC.

Although the trade deal has yet to follow through with legal procedures in Washington and Beijing, the two are building out a timeline for finalization. To see how the U.S./China trade deal ultimately plays out, check back in with us at AndNowUKnow.

UNITED KINGDOM - In case you were wondering, the ANUK team has been running through the 916 with some serious plant-based woes. As more fast food chains began adding vegan options to their menus, we patiently waited for McDonald’s to announce its own claim to plant-based fame—but to no avail. It’s been a long time coming, and finally, one of the biggest names in fast food debuted a vegan option—and U.S.-based consumers still won’t have the pleasure of enjoying them!

This week, McDonald’s responded to the clamor for vegan options by launching a new Veggie Dippers meal in the United Kingdom. The new Dippers, which are vegan nuggets made from rice, red peppers, tomato pesto, and split peas and then fried in breadcrumbs, will be available starting January 2, 2020. According to a report from BBC News, the product will be fried separately from meat products—ensuring a fully vegan meal.

The move stems from increasing consumer demand in the United Kingdom for more vegan-friendly options at fast food chains. In the last 12 months, McDonald’s noted that it had seen an 80 percent uplift in consumers ordering vegetarian options.

Will this product cross the pond? We at AndNowUKnow certainly hope so! And where there is hope, there is life—so keep checking back with us for the latest plant-based updates.

McDonald's

CALIFORNIA - In the wake of this week’s numerous updates, namely from government agencies in the U.S. and Canada, the Leafy Greens Marketing Agreement (LGMA) compiled all that the ongoing investigations have uncovered regarding the concurrent E. coli outbreaks that may be associated with leafy greens.

“This news should not have an impact on the supply chain, as the Salinas growing region stopped harvesting romaine in November,” April Ward, Marketing Communications Director, shared with the team when asked the most important thing for the industry to know.

According to a press release, the LGMA emphasized the following key points:

• Illnesses associated with current outbreaks are all in a similar time frame with the most recent onset date being mid-November
• Products implicated in current outbreaks are past their best by dates and should no longer be available for sale
• The most likely item associated with current outbreaks is romaine from Salinas
• The Salinas growing region is no longer harvesting or shipping romaine
• Romaine harvested in other growing regions is not included in any current consumer advisory, nor is any other leafy greens variety
• Leafy greens producers are voluntarily labeling all products containing romaine with information on the growing region and harvest date in an effort to assist consumers in their buying decisions

“We realize detailed information is critical to learning what can be done to prevent future outbreaks,” the LGMA said in a statement. “We continue to work with government agencies to learn all we can about these outbreaks so that our food safety practices can be improved to prevent future illnesses. As always, our thoughts are with those whose lives have been impacted in these outbreaks.”

As more updates come to light in the ongoing investigation, AndNowUKnow will continue to report.

Leafy Greens Marketing Agreement

MEXICO - My hope is that January will bring nothing but rainbows and clear skies for growers in Mexico, as rain and wind have bombarded many operations as of late. They say that the best thing to do when it’s raining is to let it rain, and that is exactly the attitude I’ve encountered when touching bases with our friends in the industry. SunFed and its Perfect Produce^® line are more than familiar with the inclement weather, but Matt Mandel, Vice President of Finance and Legal, and Gretchen Kreidler Austin, Director of Marketing and Business Development have maintained a pep in their step through it all.

“Mother Nature doesn’t play by any set rule book, and just when you think you have a handle on where things are going, she turns on a dime,” said Matt. “We’ve fought uncharacteristic rains and wind on a recurring basis since the beginning of October, which has affected both production and quality.”  

The unavoidable and untimely storms delayed picking operations at SunFed, and even some shade houses became inoperable. As Gretchen mentioned, though, this is of little concern in the face of a brand that consistently delivers perfect produce. 

“Due to our strict packing protocols, weather will not change our quality standards for our SunFed and SunOne label products, though we may not have the same percentage of product available in our SunFed label (so, place your orders early and often!),” Matt added. 

SunFed is currently harvesting conventional and organic soft squash, bell peppers, romas, cucumbers, Euro cukes, and eggplant. It will also begin to build out a larger portfolio of organics, hot peppers, and onions in the near future. Additionally, the company continues to support its retail partners with  high-graphic bins and packaging that is ever-evolving. In doing so, SunFed is continuing to strive toward a year-round, uninterrupted supply of new items that work with its farmers and mix of products.

Bet your bottom dollar that tomorrow there’ll be sun! That’s the tune blasting on repeat across the industry (maybe with a little rain dance for good measure). Meanwhile, us at ANUK will be scouting out a silver lining somewhere over the rainbow, so stay with us.

SunFed

DELTA, B.C. - When the holiday season hits and retail produce departments light up with the best of the best in fresh produce, Windset Farms^® is one of those companies that I always note front and center in the competitive greenhouse space. As Senior Sales Manager Ryan Cherry shares, there is much vision behind the holiday promotional period and end of year cheer for the Windset team.

“Windset’s snacking items are perfect for the holiday season. Cameo^® Cherry Tomatoes, Symphony^® Tomatoes Ensemble, Fresco^® Mini Cucumbers, and Dolce^® Sweet Mini Peppers are delicious and easy to prepare,” Ryan tells me. “They add beautiful colors to the table.”

In addition, Windset’s sustainable and eye-catching packaging is recyclable and consumer-friendly, which is a huge benefit for both the retailer and the shopper as produce purchasers look for more opportunities for their grocery choices to impact the longer-term effects on the environment. All three of these items showcase resealable features as well—a Top Seal element for the tomatoes and resealable bags for the mini cucumber and pepper bags.

“Retailers rely heavily on the consistently fresh and delicious produce we supply them,” Ryan says. “Knowing they can count on Windset to deliver the same delicious, family-favorite varieties of tomatoes, peppers, and cucumbers for any last-minute needs throughout the holiday season is a huge source of relief for retailers and ultimately the consumer.”

Ryan adds that during the holidays, everyone hits the grocery store to make sure they have plenty of fresh ingredients for their favorite traditional recipes.

“Retailers are able to count on the consistency that comes with greenhouse-grown produce, not just around the holidays, but all year long,” he wraps.

The competitive retail space is continuing to heat up as we conduct our 2019 count down and ramp up for 2020. Stay tuned for more of the produce pioneers impacting the space and beyond. Tick tock.

Windset Farms®

BAKERSFIELD, CA - Carrots feature heavily in some of my favorite holiday dishes. Brightly colored, versatile in flavor and application, carrots easily run the gamut of holiday possibilities. As consumers further dial down their holiday menus, how can retailers best prepare? I caught up with Mike Anspach, Grimmway Farms’ Vice President of Sales, to learn about the state of this season’s carrot market.

“We’re well into our Bakersfield fall crop and our quality looks great during the holiday season,” Mike explained. After 50 years of maintaining its commitment to consistent quality, Grimmway is continuing in this tradition, ensuring that its retail partners only put out the freshest carrots to the market.

“The holidays are an ideal time to promote baby carrots and value-added cuts,” Mike shared with me, noting that convenience plays a large factor in consumers’ buying decisions. “We expect to see strong demand for our organic carrot items, especially our rainbow products including cello, bunch, baby, and ColorShred®.”

As we get closer to the holiday rush—or rather, as we continue to weather it—AndNowUKnow will bring you the latest in what’s happening in all commodities.

Grimmway Farms

BOISE, ID - Albertsons Companies is eager to stay on the cutting-edge of the industry, investigating and investing in new avenues of innovative growth. The retailer has partnered with Takeoff Technologies since 2018 and has since placed its focus on micro-fulfillment centers (MFC). Albertsons is continuing at full speed to collaborate with the tech company on more and better MFCs, including those it plans to purchase from Takeoff, and the ones yet to be constructed.

“The micro-fulfillment center model is a key element in the store of the future,” said Vivek Sankaran, President and Chief Executive Officer of Albertsons. “It combines the efficiency of automation with the ease of meeting customers when and how they want to shop. In working with Takeoff, we can evolve how the MFC ties into our store and e-commerce ecosystems and accelerate our path to best serve our customers.”

Leading the way in e-commerce fulfillment space, Albertsons operates stores in eight out of the ten largest MFC’s in the U.S., according to a press release, and has agreed to purchase more MFCs from Takeoff. While evaluating market expansion opportunities, Albertsons and Takeoff continue to collaborate, which has already resulted in the successful implementation of the company’s first MFC in South San Francisco in October of this year.

Albertsons and Takeoff kicked off their partnership in 2018 with plans for two pilot micro-fulfillment centers that would be built in existing Albertsons stores. The first pilot began on October 23, at a South San Francisco Safeway location. Another pilot is expected to begin operations at a San Jose Safeway location before the end of 2019.

“In collaborating with Takeoff, we’re able to leverage their thought leadership in e-commerce fulfillment with our expertise in running great grocery stores that meet customers’ everyday needs, and that’s exciting turf for us,” said Chris Rupp, Executive Vice President and Chief Customer and Digital Officer for Albertsons. “By placing an MFC in an existing store close to customers, we can carry a diverse and locally relevant selection of products with the friendly touch of our local team to service the customer.”

MFCs are said to combine the proximity of brick-and-mortar stores with the automation capabilities of large warehouses. The MFCs are located inside existing stores and can hold approximately 15,000 to 18,000 of the most popular products from the store’s local market.

“We are thrilled to broaden our partnership with Albertsons Cos., a clear leader in grocery retailing and a key player shaping the future of eGroceries,” Max Pedró, Co-Founder and President of Takeoff, commented. “With our strategic partnership, we’re confident we’ll be able to add significant value to its business and consumers as we work in partnership to define the future of e-commerce.”

Takeoff Technologies reports that the MFCs increase productivity by up to ten times due to the accuracy, improved speed, and efficiency they provide. Because the MFCs offer real-time inventory information, robotic fulfillment can greatly reduce or even eliminate product substitutions.

“We are living in historic times. The grocery industry is transforming its way into the future, and the winners will be the ones getting it right first. Albertsons Cos.’ move to expand its micro-fulfillment capability is a clear testament of such transformation,” said José V. Aguerrevere, Co-Founder and Chief Executive Officer of Takeoff.

Keep reading AndNowUKnow for more updates on the e-commerce space.

Albertsons