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

NYSSA, OR - Onions are in high demand this time of year, and growers across the industry are staring down their bottom lines. Between an uptick in the market and seasonal transitions supply chain wide, onions of all varieties are on the tip of everyone’s tongue. Owyhee Produce is ramping up its supply ahead of the busy holidays, reporting that its California crops will produce excellent quality through to spring 2020.

"I'm still holding hope out for a slightly higher market, and I guess that's a natural tendency of mine. Definitely, as a grower and as a farmer, I’m connected to the value of that crop and that's really important to me. So, I don't mean to mislead, but I would think that January we will see a little bit of an uptick because we normally see a little bit of a change there," said Shay Myers, General Manager. He continued by saying that overall, the market has stayed soft and has not taken an upward trend as predicted.

According to a press release, Owyhee’s California crop is looking great and won’t come off until June. The Imperial Valley is looking down on its plantings because it had a really challenging season. In the last two seasons, the Imperial Valley has been overlapping with the Northwest, Mexico, Texas, and others all at the same time. Therefore, it is going to have a bit of a tighter market. The Central Valley seems to have made a good profit, and it looks as though there's going to be plenty of onions, but Mother Nature will dictate what happens. Meyers continues to stay hopeful that the market will pick up, but as normal, only time will tell.

To see the final results of Owyhee’s onion crops, keep reading AndNowUKnow.

Owyhee Produce

MURRIETA, CA - It’s no secret that avocados are a beloved category in the U.S. With rapid growth across retail, foodservice, and social media platforms, the fruit could practically be called an influencer. Whether on the buy- or supply-side, industry experts have capitalized on the popularity of avocados by finding innovative ways to up their productivity. The California grower, packer, and distributor, West Pak Avocados, has harnessed the excitement of this incredible product, releasing a series of videos at one of the industry’s hottest events, aptly named Avo Affinity at PMA Fresh Summit.

“Everybody loves avocados,” said West Pak Marketing Manager George Henderson. “In fact, avocado consumption has been increasing steadily year over year and has blossomed into a global sensation. In the industry, this super fruit is a force of nature that cultivates opportunity for our many retail and foodservice customers, and industry affiliates alike.”

West Pak Avocado’s 2020 campaign, called the Avo Effect, Avo Affinity at PMA Fresh Summit, covers the avocado’s effect on the largest produce convention in the United States. The company debuted its first installment of the videos this year at the Produce Marketing Association’s (PMA) Fresh Summit event. It provided the ideal setting to demonstrate how this favorite green fruit amplifies excitement within the produce industry. Interviews for Avo Affinity at PMA Fresh Summit include representatives from California Avocado Commission, Avocados from Mexico, The FruitGuys, and Fairtrade America, among others.

According to a company news release, the Avo Effect is a broad-reaching video campaign that sheds light on the global phenomenon the avocado has sparked within the produce industry. The videos are designed to cover West Pak’s avocado footprint along with the significant reach that the avocados have across core industries. Topics showcase the Avo Effect on trade, retail, foodservice, commissions, California avocado season, organics, sustainability, and social media influence. Each video in the series offers real-life testimonies of how the avocado has had a positive effect on others.

Avo Affinity at PMA Fresh Summit debuted November 18, 2019, while other installments to the Avo Effect campaign are planned for release throughout 2020. All videos can be found at avoeffect.com and under the hashtag #avoeffect on social media. Look out for each video as they launch on West Pak’s Youtube, Facebook, LinkedIn, Instagram (Instagram Feed, IGTV Channel, Stories), and Twitter, plus West Pak’s blog.

In a category that practically sells itself, companies are hot on the trail of innovations that will surpass all expectations, and West Pak is no exception. For more on ANUK’s favorite green gold, stay tuned.

West Pak Avocado

LAKELAND, FL - Since its revamp in 2017, Publix has been pressing the gas on the expansion of its organic- and health-centric banner, GreenWise Market. Now, the retailer seems to be focusing in on a specific region—South Carolina. As we reported earlier this year, Publix has been pursuing growth in the region and will soon be opening a new store under its GreenWise Market banner in Lexington, South Carolina, which will be the second in the state, and the fourth for the banner overall.

“Our GreenWise Market team is very excited to bring this new shopping experience to Lexington and the greater Columbia community,” said Publix President Kevin Murphy. “Our customers can expect to find unique and local products, as well as a gathering place for small meetings.”

Located in the city’s Lexington Marketplace shopping center, the new GreenWise Market will offer residents an expertly-curated selection of specialty, natural, and organic products, according to a press release. The store will also feature a large variety of prepared foods, organic produce, and more. Showcasing the banner’s unique format, the new store is split into specific “experience zones,” like EATS, CARE, and FINDS, which customers can use to more easily navigate the store. The new location will also include a tribute to its local community with a multi-panel mural by local artist and architect, Wayne Rogers. The mural is said to serve as both an abstract lake scene and a metaphor for what ties the town together.

Publix’s GreenWise Market expansion has quickly gained steam—the first location opened in Tallahassee, Florida, in October 2018, and earlier this year the retailer opened two more locations. A total of 12 future locations have been announced, and Publix is still searching for additional locations throughout its operating area.

The new South Carolina store is located at 5336 Sunset Blvd. in Lexington, indicating the retailer’s ongoing plan for expansion is seeing tangible success.

How far is Publix looking to penetrate the Southwest region? AndNowUKnow will bring you updates.

Publix GreenWise Market

DELANO, CA - With fresh produce companies at the top of their game lately, more providers are turning to their packaging to tell their stories for them, especially since the fruit and veg inside already speaks for itself. But instead of crowding its packaging with anything that could distract from the table grapes inside, Jasmine Vineyards is debuting its own clamshell take that is clean, green, and beautifully pristine.

Jon Zaninovich, President of Jasmine Vineyards, pulled back the packaging to give me a glimpse at the thought process behind the grower’s unique, innovative, and eye-catching new design.

“The new clamshell is part of our bigger plan to step up our eco-friendly offerings when it comes to the full line of Jasmine Vineyards’ packaging,” Jon explains to me. “While our bags, punnets, and clamshells are all recyclable, our new backyard compostable clamshell is going to appeal to our health-conscious shoppers who are committed to minimizing the use of plastic.”

 

 

 

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Jasmine Vineyards shares this commitment with its consumers and has already taken steps to minimize its plastic use with its Naked packs, which debuted earlier this year. Now, with the new compostable clamshell, Jasmine Vineyards is taking this commitment one step further.

“The vision behind our new clean clamshell is exactly that: clean! With eco-friendly packaging, the simpler the better, and the grape cutout made both a perfect window and a brand statement,” Jon emphasizes, before giving retailers a shout-out. “We'd love to hear from retailers who want to give these clamshells a try. Our season is coming to an end, but now is actually a great time to test them in stores.”

Jon notes that as the grape season winds down, retailers can use the next month or so to gather customer feedback, which can then inform retailers’ purchasing decisions come June/July 2020.

All eleven of Jasmine Vineyards’ table grape varieties will be housed in the new clamshell, so retailers, what are you waiting for? The packaging future is here, and it’s definitely what you want lining your produce aisle shelves.

For more inside looks at produce purveyors pushing the packaging envelope forward, keep starting your morning off right with AndNowUKnow.

Jasmine Vineyards

UNITED STATES - As the FDA continues to seek a connection between the cases of the most recent E. coli O157:H7 outbreak and a singular source, it looks as though the investigation remains in effect, as well as the advisory for consumers not to eat romaine lettuce grown in the Salinas, California, region.

“CDC advises that consumers not eat and retailers not sell any romaine lettuce grown in the Salinas, California, growing region. This includes all use-by dates and brands of romaine lettuce from this region,” a CDC release dated December 4 states.

The PMA alerted industry members of the latest details in the investigation, noting that the latest onset date has been extended to include November 18, 2019. Previously the onset date was November 14. Illness onset dates reported are all prior to the warning issued by the FDA on November 22, according to the report.

As of December 4, the CDC and the FDA report that:

• Reported Cases: 102
• States: 23
• Hospitalizations: 58
• Deaths: 0
• Recall: Yes

To see the full reports from the two parties, please click through: CDC and FDA. The most recent timeline of reported cases since can be found here.

We continue to remain on the lookout for the latest updates while hoping for a swift end to the outbreak and closure for all those affected.

HOUSTON, TX & SANTA PAULA, CA - One of the houses I lived in growing up had this big lemon tree in our backyard. I’ve always seen shows depicting little kids running lemonade stands, but that never came to mind for me. Limoneira, on the other hand, wants to change that—for other kids, of course. Limoneira has partnered up with Lemonade Day National and has established a two-year charitable licensing agreement designed to support Lemonade Day in advancing its mission to equip kids with business and character building skills that will prepare them later on in life.

“The Lemonade Day program teaches the value of hard work, owning a business, and giving back to the community—ideals that could have come out of the mouths of our founders more than 125 years ago,” said John Chamberlain, Vice President of Marketing for Limoneira. “All of us at Limoneira couldn’t be more excited to transform the lives of young people by helping to elevate Lemonade Day’s profile within the organization’s 75+ licensed markets as well as help secure even more Lemonade Day communities.”

According to the press release, the agreement was completed in September and coincided with the launch of the Lemonade Day 2020 season. Lemonade Day is a national youth entrepreneurship program that teaches kids how to launch their own lemonade business. Limoneira will serve as presenting sponsor and fund the prizes for Lemonade Day’s National Youth Entrepreneur of the Year, announced every September during the National City Directors Conference. Limoneira will also provide additional benefits that include, but are not limited to, the following:

• Delivery of in-kind product to Lemonade Day cities
• Development and co-branding of Limoneira lemonade recipe
• Working with Lemonade Day executives to encourage legislators to loosen permitting requirements and reduce or eliminate fees for temporary food businesses operated by children under 18 years old
• Encouraging its retailers to allow Lemonade Day participants to set up their stands inside or outside their stores
• Coordinating and maximizing collaborative advertising and promotional opportunities
• Sponsorship of the LemonMobile

“What is the LemonMobile?” I hear you ask. Limoneira plans to convert a school bus that will be driven to key promotional markets from coast to coast. The LemonMobile will be available to help kids and their mentors learn about the Lemonade Day program, the health benefits of lemons, and how to make their own “healthy stand” lemonade when it is not delivering lemons to food deserts and other underserved communities.

In order for the kids to learn how to make easy, tasty, and nutritious recipes, Limoneira has teamed up with Megan Roosevelt, a registered dietician and founder of Healthy Grocery Girl, who is also a spokesperson for Limoneira’s Take a Healthy Stand™ platform. Take a Healthy Stand showcases the many ways that citrus and produce can play a role in helping to alleviate serious health issues as well as enhancing personal appearance and well-being. Roosevelt will develop recipes for Lemonade Day participants to offer to customers at their lemonade stands that coincides with that platform.

“As a global citrus supplier, Limoneira is a perfect partner for us. Our Lemonade Day National Board of Directors share my enthusiasm about collaborating with this global company, its employees, and its customers,” said Steven Gordon, Lemonade Day National President. “The company’s founders, Nathan W. Blanchard and Wallace L. Hardison, were pioneers with the spirit and vision that helped to lay the foundations of a thriving California citrus industry. Their guiding principles align with the leadership, confidence-building, and entrepreneurship lessons that Lemonade Day teaches young business dreamers.”

For more inspiring news out of the produce world, keep reading AndNowUKnow.

LimoneiraLemonade Day

SAN FRANCISCO, CA - GrubMarket initially hit our radar back in May when it acquired the San Diego-based produce supplier, VIP Wholesale. The e-commerce behemoth then caught our attention again when it scooped up the two West Coast companies, Golden Greek Fresh and Happy Farm Produce in October. Then, as if it were moving at warp speed, GrubMarket completed yet another acquisition, this time bringing in the Michigan-based farm-to-table delivery service Doorganics. Needless to say, the up-and-comer piqued our interest once more, and we are eager to learn the secrets of its success.

"Doorganics is one of the premier farm-to-table grocery delivery services in the Midwest, consisting of a well-respected and highly-regarded team. This acquisition is another key step in GrubMarket's nationwide expansion plans, and we are incredibly excited to welcome Mike Hughes and his team into the GrubMarket family," said GrubMarket CEO, Mike Xu.

According to a press release, Doorganics will now be able to leverage GrubMarket's established e-commerce network and supply chain capabilities, which will assist the company in expanding its offerings to more cities across the Midwest. Furthermore, GrubMarket will provide technological, e-commerce, and operational expertise. Doorganics' headquarters will remain in Grand Rapids, Michigan, and the company will continue to be led by its current leadership team, including Founder Mike Hughes.

"GrubMarket believes in the importance of supporting local farmers and producers, while recognizing the essential role that technology can play in food e-commerce. We look forward to working with the GrubMarket team to further enhance and expand our service across the Midwest," said Hughes.

Doorganics' mission is to support local Michigan farmers, food makers, and artisans, by hand-delivering products to customers' front doors. In particular, the company sources as many items as possible from within the State of Michigan, including a variety of delicious foods from small local farmers and foodmakers who might not have the scale to obtain shelf space at larger grocery stores. From a business perspective, Doorganics caters to residential customers, by offering them hundreds of items that they can enjoy on their own or with their families.

Although we can’t predict what the innovative e-commerce company will do next, there’s no doubt in our minds that GrubMarket will soon be snapping up more companies and incorporating them into the fold. To see how it all plays out, keep a tab open for AndNowUKnow.

GrubMarket

TEXAS - A major expansion is headed to South Austin and it’s shrouded in red and white. Sound intriguing? It should, because H-E-B is planning a massive $200 million expansion in the region and the addition of more than 1,000 new jobs as it aims to drive growth.

“This level of investment has been years in the making,” said Jeff Thomas, Vice President and General Manager, Central Texas Region. “With the growth the city is experiencing and the opportunities for us to be part of that growth, we made the decision to invest aggressively.”

Part of this expansion plan is to both remodel old stores—like its South Congress unit—and open new ones. Its South Congress store, as we reported earlier this year, will set the bar for innovation and pave the way for the grocer’s upped interest in both grocery delivery and curbside pickup.

According to a report from The Austin American Statesmen, H-E-B’s South Congress store will essentially display the company’s new tech.

“It will be a showplace for the company that will have all the newest edges and advances,” Thomas said. “When it’s done, people from all over the country—and the world—will want to come see this store.”

That store is expected to open in 2022. The news source also reported several other stores in the South Austin area are expected to open in the first quarter of 2020.

“With so much growth happening to the north and west and east as well as to the south, obviously we’re looking at all parts of Austin,” Thomas noted. “Probably at an appropriate time in the future, there will be news that we can share about other parts of Austin.”

How will this expansion plan continue to play in H-E-B’s favor? AndNowUKnow will report the latest.

H-E-B

GLENNVILLE, GA - G&R Farms, one of the oldest growers of Vidalia^® Sweet Onions in Georgia, has made a new addition to its operations team. The grower announced the appointment of Michael Sutton, an industry vet of more than 40 years, to the role of Operations Manager.

“Michael is certified by the USDA to inspect any vegetable or fruit that is grown anywhere in the world,” said Walt Dasher, Co-Owner. “He has an incredible amount of experience in the produce field and, just as important, he has managed hundreds of employees while providing training and oversight."

During his impressive career with Georgia’s Federal State Inspection Service, Sutton achieved certification as a produce inspector and auditor by the U.S. Department of Agriculture. Sutton served as a district supervisor and managed a broad range of responsibilities, including personnel recruitment, training, performance, and scheduling. He also conducted numerous audits on growing and packing facilities throughout Georgia.

“As a member of our management team, Michael will provide invaluable experience that will help us maximize efficiency and balance objectives to ensure quality control and food safety are job one in every aspect of operations,” Dasher said in a press release. “We are a year-round supplier of sweet onions so when Vidalias are not in season, we are shipping Peruvian and Mexican onions. Michael’s background as an unrestricted and licensed USDA inspector will ensure that our onions meet the highest standards in the onion industry.”

After spending nearly four decades working for Georgia’s Federal State Inspection Service, Sutton joined G&R Farms as a temporary Operations Manager earlier this year.

Congratulations to Michael and G&R Farms for the wonderful new addition to the team!

G&R Farms