SAN FRANCISCO, CA - Trader Joe’s is a retailer that can’t be stopped—literally. Continuing to be unconventional and successful at the same time, the grocer won an exemption last week from San Francisco’s ban on chain stores. According to a report from the San Francisco Chronicle, a Trader Joe’s in Hayes Valley was approved by the city’s Board of Supervisors. This ban, the news source noted, is meant to prohibit what the city deems “format retailers” from moving in on smaller, locally-owned shops.

“The sameness of formula retail outlets, while providing clear branding for consumers, counters the general direction of certain land use controls and general plan policies, which value unique community character and therefore need controls, in certain areas, to maintain neighborhood individuality,” the Planning Department’s website stated.

San Francisco’s Planning Code notes that these formula retail chains are any establishment with 11 or more locations currently in operation. Given that Trader Joe’s—with its 488+ store units—definitely fits the bill, the question remained how it received an exemption from the ban.

“Hayes Valley is a thriving shopping district, but people forget that the median household income on the north side of Fulton is $24,041, and over one-third of the residents that live there live below the poverty line,” Supervisor Vallie Brown, whose district includes Hayes Valley, told the Chronicle. “It’s important to bring in a grocery store that’s affordable and offers fresh, organic food.”

Trader Joe’s: the (not so) little chain that could.

For all of your industry and retail updates, keep reading AndNowUKnow.

Trader Joe's

RIVERSIDE, CA - Dana Thomas, longtime Chief Executive Officer of Index Fresh, has announced his plans to retire from his role in 2020. Following the news, the Chairman of the avocado provider’s Board of Directors, John Grether, announced the commencement of a search for Index Fresh’s next CEO.

“Dana joined Index as its CEO in 1996 when it was a cooperative, successfully led it through a conversion to a for-profit enterprise, and managed the business as its stock has steadily increased in value,” praised Grether.

Thomas first joined Index Fresh twenty-four years ago. In his quarter of a century run as its CEO, Thomas was instrumental in positioning the company as an industry leader, according to a press release.

In addition, Thomas is celebrated for the following accomplishments:

• Assembling an outstanding staff and executive team
• Providing Index Fresh’s California growers with excellent returns
• Delivering consistently strong dividends to shareholders
• Developing partnerships with the country’s leading retail and foodservice providers
• Significantly growing the company’s market share
• Maintaining the highest ethical standards in the industry

Index Fresh, which markets Hass and GEM avocados throughout the U.S., Canada, and select markets in Asia, owns and manages packing houses in Bloomington, California, and Pharr, Texas. The company also sources fruit from its California, Mexico, Chile, Colombia, and Peru grower-base.

To help it with the search for its next CEO, Index Fresh has tapped Jeff Hodge and Neil Sims of Boyden. Who will succeed Dana Thomas as the head of Index Fresh? AndNowUKnow will report on the latest in the fresh produce industry.

Index Fresh

MONTEREY, CA - The third annual Organic Grower Summit—slated for December 4th and 5th at the Monterey Conference Center—is right around the corner and promising to bring growers, producers, and supply chain leaders from across the industry together for a unique and elite event. As part of our industry’s passion to address key issues facing the business today, an exclusive showing of the award-winning Driscoll’s documentary The Last Harvest—which shines light on the labor shortage and immigration reform—will be held at the show followed by an open forum discussion among produce industry leaders.

“The Last Harvest is just one small part of our journey to demonstrate our commitment to enrich the lives of everyone we touch across our farming communities. As one of the few brands in a typically commodity-driven agriculture industry, we have the unique opportunity to advance topics, themes and challenges that are otherwise invisible to most consumers,“ said Soren Bjorn, President of the Americas, Driscoll’s. “In many cases, strategic collaborations across public and private sectors are needed to improve these larger industry challenges. We support solving systemic issues at a legislative and policy level and continue to be active in timely discussions.”

To check out The Last Harvest trailer and get a deeper dive into the film, click here.

This 22-minute documentary was produced by Driscoll’s in partnership with studio Farm League. Attendees will have the opportunity to hear the hopes, hardships, and sense of life-purpose in harvesting berries from three independent family growers during The Last Harvest. The issues contributing to agriculture’s labor shortage are not going to take care of themselves and the film proposes possible solutions to overcoming these challenges.

Following the airing of the documentary, a panel of produce industry leaders will hold a lively discussion on the challenges and solutions around the labor shortage, immigration reform, H2A, and growing innovations. The session will be moderated by Tonya Antle, Co-Founder, Organic Produce Network with panel members including Bjorn, Dave Puglia, Incoming CEO, Western Growers Association; Hannah Freeman, Co-Founder and CEO Ganaz, and Carmen A. Ponce, Vice President and General Counsel of Labor, Tanimura Antle.

In addition to the exhibition floor and the film showing, the event will feature a series of eight educational sessions and a trio of acclaimed keynote presenters recognized for their innovative and resourceful leadership in creating new and exciting opportunities for those involved in the production of organic crops and products, according to a press release.

The series of educational sessions will touch on areas including:

• What’s Next in Organic Plant Health?
• The Growing Hemp Marketplace
• Organic Cannabis on the Horizon
• Strategies to Reduce Risk through Organic Soil Health Practices
• Organic Farming in the Era of FSMA
• Organic Sales Data Dive

So who will be taking to the main stage for the day's keynotes? The presenters include Kat Taylor, Co-Founder and CEO of Beneficial State Bank, and Founding Director of TomKat Ranch Educational Foundation; Amy Ansel, Co-Founder of Titan Bioplastics; and David Perry, President and CEO of Indigo Ag.

The OGS is produced by partners California Certified Organic Farmers (CCOF) and Organic Produce Network (OPN) and is designed to provide information vital to organic farmers and ranchers, as well as an overview of the challenges and opportunities in the production of organic products.

Mark your calendars for the event, if you have not already, and point your feet toward Monterey, California!

Organic Grower Summit

MONTEREY, CA - There’s a surprising misconception that if you throw hemp seeds in the ground, they are going to grow and produce a high-value crop, but Tanya Hart and Amy Ansel, Co-Founders of Titan HempX and Titan Bioplastics, with a smile suggest otherwise. This exchange intrigued me because hemp is quickly evolving in the industry—so, what does the crop offer to growers who’ve had skin in the produce game for decades? That’s the question everyone will be asking at the Organic Grower Summit (OGS) this year, with Amy delivering a keynote speech to address transforming the unsustainable through industrial hemp production.

“The cost to do a high-value hemp crop is relative to the value of that crop after it's produced,” Amy explained. “Meaning that there will be a substantial investment into that growing operation to produce a crop that has the kind of high value that farmers would ideally like to have. For Industrial Hemp (vs. Hemp for CBD extractions), you're looking at growing a commodity crop that is typically lower in cost to produce and has experienced lower value in the market.”

OGS attendees will surely be mind blown, like I was, to digest all of the opportunities available to growers in this sector. When I asked Tanya what innovations have been developed in the hemp industry, she informed me that we are in the midst of a great technological push to support the commercialization of Industrial Hemp. According to her, technology along the manufacturing pipeline is still evolving to make it cost-efficient to compete with other materials.

I went on to question how hemp provides an opportunity to be more kind to the Earth, but quickly learned that hemp encapsulates many of the things that sustainability represents.

“We have a chance in this industry to grow something organically right from the start—and that has a dual meaning,” Tanya began. “Most hemp farmers do grow hemp organically because it's naturally resistant to pesticides. There are a few bugs that like it, but there are natural solutions to that, so you don't have to spray pesticides over hemp. Most farmers take pride in growing their material organically, and some may take the extra steps to certify themselves as organic. But the majority of material is grown naturally and organically.”

Though hemp may be a door leading to a boost in sales for organic operations, not all that glitters is gold. Tanya left me with some sage advice for growers looking to move into the hemp sector.

“The advice I would give to farmers today looking to grow hemp, is start small,” Tanya said. “Don't assume that you're going to have an automatic cash cow. The market is unstable for consistent pricing. It's really about finding the type of hemp you want to grow, making sure you're near a processing facility that can actually handle the material, and start small. Test out the soil you have and find experts that really know what they're doing. Even if you're a farmer that's been growing for generations, find somebody that really knows how to grow hemp in the sector of the industry that you're interested in, and do it really well.”

It truly is the Wild West out there in terms of industrial and commercial hemp regulations as we have seen in recent news. Putting the cart before the horse is a losing game but lucky for voices like Tanya’s, the industry will be able to receive first-hand clarity at OGS where many that are not equipped to expand into the category have only found muddy water.

My conversation with the two powerhouses extended long past this page, but I’ll have to save the rest for another day. In the meantime, you can learn about industrial hemp production directly from the www.titanhemp.net and www.titanbioplastics websites. And if you’re lucky enough to attend the Organic Grower Summit this year, all of this and more will be divested to you in Amy’s keynote speech. As always, ANUK will continue investigating this agricultural opportunity, so stay tuned.

Titan Bioplastics

HERMOSILLO, MEXICO - Rico Farms, a grower marketed by its partner Bridges Produce, is putting significant effort into its social programs as a catalyst for changing its workers lives, both on and off the farm. With such a commitment to its team members, Bridges Produce-backed Rico Farms is one to watch in the industry.

“The critical role of the field workers is too often forgotten in the supply chain. Rico Farms is dedicated to improving the lives of its workers and its community,” Ben Johnson, President of Bridges Produce, commented. “Rico Farms is a wonderful example of Bridges’ greater mission, to enable all stakeholders to thrive.”

Rico Farms is owned and operated by the Tapia family, who grow organic summer and winter squash, melons, cucumbers, eggplant, green beans, and chili peppers. The grower’s 100-percent organic crop seasons run from October through May. But it is not just the exceptional produce Rico Farms cultivates that gets Bridges Produce excited, but its focus on taking care of its team members.

“We don’t just want better employees; we want the workers to be better people in our community and to provide better opportunities for all our workers,” Rico Farms’ Operations Director, Jacobo Yanes, commented in a press release.

The Tapia family makes upgrades to their facilities and adds social programs every year to reach their goal of “Creating well-being and fostering a more sustainable world.” This year, Rico Farms implemented both a Fair Trade initiative that enabled 850 workers to make repairs and upgrades to their homes and expanded its educational fast track reading and writing program to include five different levels of education and training.

Under the education initiative, workers are able to enroll in reading and writing classes and work with tutors in efforts to graduate with one of the five certificates offered: literacy, primary/elementary, secondary/junior high, leadership, and its most recent program, which was introduced this year, high school. Funded by the Rico Farms Foundation, the education program has helped 337 people graduate over five seasons.

“Their interest and willingness to learn is motivation for us,” said Yanes. “It makes us want to continue supporting them to grow as people in all aspects and to show them that they are important.”

Workers are also invited to enhance their certificate programs with regularly scheduled educational talks, theater performances, and movie screenings. Several topics are explored in the program, including fostering self-esteem, drug prevention, and promoting personal development through health and nutrition education.

“I would like to thank Rico Farms and the Tapia Family. We had the opportunity to study and work at the same time. We did not have this educational opportunity back home where we live. We are also receiving materials to fix our houses because of this great Fair Trade program. We want to continue working here so more people can benefit,” said Samuel Hernandes, a Rico Farms Employee who, with his brothers, returned to the farm year-after-year, and has now taken on supervisor rolls at the farm.

Along with programs funded by the Rico Farms Foundation, the grower is also Fair Trade Certified. The premium paid on each box of Fair Trade products is returned to the Fair Trade Committee so other projects are funded that are selected by the workers. Since late 2013, the Rico Farms facility in Hermosillo, Mexico, has been Fair Trade certified, and this year the grower has initiated its most ambitious project yet. The company is providing materials to upgrade and repair 850 employee’s homes in Oaxaca, Chiapas, and Veracruz, Mexico. The project is set to be completed by January 2020, and is made up of 600 workers from the current season with the remaining beneficiaries coming from the previous season. Over $100,000 in premium funds are used to purchase and deliver building materials including cinder blocks, cement, laminate, paint, and metal roofing sheet to the workers’ home communities. The project will benefit not only the workers, but thousands of their family members as well. These building materials are critical in southern Mexico, as many of the workers’ homes were damaged from an earthquake that hit two years ago.

AndNowUKnow will continue to bring you the latest from the produce world.

Bridges Produce Rico Farms

SPRINGDALE, AR - Harps Food Stores is expanding its partnership with Instacart and, as a result, bolstering its delivery capabilities. This week, the retailer announced grocery pickup will now be available at select locations throughout its four-state footprint all thanks to Instacart.

“We are excited to expand into both delivery and click and collect services,” said David Ganoung, Harps’ Vice President of Marketing, in a statement. “We strive to continue to meet the needs of our valued customers by offering the convenience of both delivery and click and collect services.”

According to Talk Business & Politics, the two companies first teamed up earlier this year to initiate Harps’ foray into grocery delivery. Now, as a part of the expanded partnership, Harps will begin launching its pickup service in the next couple of months.

“Our expanded partnership with Harps Food gives customers one more time-saving option when shopping for groceries and household essentials,” added Andrew Nodes, Instacart’s Vice President of Retail. “We know that customers want choice, and we’re excited to offer both pickup and delivery options to Harps Food’s loyal customers.”

As grocery delivery continues its trajectory to the top of the list of hottest sectors in grocery retail, AndNowUKnow will continue to keep you up to date on the latest.

Harps Food Stores Instacart

SUMMERLAND, BC, CANADA - PMA Fresh Summit may be in our rear window, but companies are still celebrating the effects of a successful show. Okanagan Specialty Fruit (OSF) showed up and out at this year’s Fresh Summit trade show in Anaheim, California. The developers of the non-browning Arctic® apple were pleased with the reception they saw from attendees.

“We always enjoy attending Fresh Summit—it provides excellent networking opportunities, is the ideal platform to share the newest developments for our company, and demonstrates the many opportunities that Arctic apples offer to the produce industry,” stated Neal Carter, President, in a recent press release. “The just-picked flavor and fresh appearance of Arctic apple slices provide retail and foodservice the ability to utilize fresh-cut apples without sacrificing flavor, convenience, and customer satisfaction. One of my favorite things is to watch people experience this firsthand.”

Showgoers were treated to the company’s Charcuterie Bar, which showcased how Arctic apples can be paired with other ingredients. OSF also offered attendees the chance to spin a prize wheel for a chance to win Arctic apple swag. The grand prize was a branded Apple Watch, which was won by Cherylynn Hebison.

“Winning this Apple Watch is amazing and I could not be more excited,” remarked Hebison. “Stopping by the Arctic booth at the Fresh Summit was not only informational, it was educational. Thank you so much, and I look forward to seeing you next year.”

In addition, OSF has just wrapped its harvest of Arctic® Golden and Arctic® Granny varieties, which will soon become available in select retail locations in the United States and to foodservice customers.

As always, stick with AndNowUKnow to read the latest in the produce industry.

Okanagan Specialty Fruits

HOUSTON, TX - The Sysco Corporation is always looking at new ways to switch up its offerings. Earlier this year, the company accomplished this by acquiring two meat distributors based in California. Yesterday, however, Sysco announced that it has now acquired two Hawaii-based fresh produce providers: Armstrong Produce and Kula Produce. The two companies combined have approximately $155 million in annual revenue. Part of Sysco’s specialty produce company, the acquired entities will operate under the FreshPoint banner.

“Armstrong Produce and Kula Produce have been providing quality service and produce to Hawaii and the Pacific Region since 1979, and we are excited to welcome them to the Sysco family of companies and to FreshPoint,” said Greg Bertrand, Sysco’s Executive Vice President, U.S. Foodservice Operations. “A key pillar of FreshPoint’s strategy for continued growth and value creation is the continuous assessment of new market opportunities. Acquiring Armstrong Produce and Kula Produce provides Sysco and FreshPoint with additional direct access to the Hawaiian Islands and increased capacity to expand our produce assortment in the local market.”

Armstrong Produce was founded in 1979 and has grown from a small family-run wholesale business into one of Hawaii’s leading produce wholesalers and distributors, according to a press release. With operations in Honolulu, Kona, and Kahului, the company supplies a wide range of customers with fresh produce daily, from local chefs to retailers. Armstrong Produce and Kula Produce are sister companies. FreshPoint expects to retain the executive leadership team of Armstrong Produce and Kula Produce, as well as all current associates.

“By leveraging the combined skills of FreshPoint, Armstrong Produce and Kula Produce, we are better positioned to serve our customers,” continued Bertrand. “This partnership provides an opportunity to broaden our vision to be our customers’ most valued and trusted business partner.”

Congratulations to Sysco on another successful acquisition! To see how the fresh sector continues to evolve, keep reading AndNowUKnow.

Sysco

REIDSVILLE, GA - Around this time of year, the food wires become congested with recipe suggestions that introduce new takes on old favorites and acquaint consumers with what very well could be their family’s new tradition. No matter the recipe—whether it's a holiday classic or a new innovation—all winter holiday dishes are sure to have one thing in common: an onion variety or two featured front and center. Knowing this fact better than anyone, Shuman Farms is heading into a prime onion season with a sweet variety for retailers and consumers to enjoy.

“During the 2018-19 Peruvian sweet onion season, Shuman Farms led the industry by importing nearly 1,100 containers of Peruvian sweet onions for U.S. distribution. This season, we plan on having similar production,” John Shuman, President and CEO of Shuman Farms, shared with me.

Shuman Farms is currently shipping its RealSweet® brand Peruvian sweet onions, which normally runs during the months of September to March. With supplies on the up and up for Shuman Farms, I asked John how harvest and quality are faring in the great state of Georgia. John confirmed quality, despite the early harvest, has been excellent. This positions retailers well to stock up on not only a hefty supply of Peruvian sweet onions, but a supply rich in quality, too!

ANAHEIM, CA - Before the internet took off, and with it social media, Fresh Del Monte Produce was already doing for the environment what brand influencers today are just beginning to catch on to. Now, it wants to share its wisdom and resources with potential partners in conservation.

“This is about something we have been working on for the past 30 years, and I have been intimately involved with it from the agricultural side in terms of looking for better ways of farming, ways that are more friendly for the environment,” Hans Sauter, Senior Vice President Corporate R&D, QA and Agricultural Services for Fresh Del Monte Produce, recently shared with me.

The company has taken these steps around four pillars of sustainability: its products, communities, environment, and people.

“It’s sustainability as a whole, but it is also a strategy,” Hans added. “Each pillar involves a number of different things that go into supporting our communities and our people, and all of it is validated very highly.”

And that strategy is growing in several new ways, Hans shared, as the company seeks to relay what it has learned with others in our industry and beyond.

“We are calling it A Better World Tomorrow—it is our vision. We have done it, we believe in it, and we are setting that example for our own suppliers, our own growers, and we want to partner with other organizations because we have experience firsthand in this,” Hans emphasized.

It would be a partner to be reckoned with, as the company continues to set and exceed goal after goal. The company has committed to delivering 300 different local sustainable initiatives by year 2025, with a point of keeping them local so team members and Fresh Del Monte Produce’s communities can engage with and give input on those initiatives.

Notable achieved and in-process commitments include:

• Reducing energy consumption by 12 percent per pound of product before the 2020 deadline
• Reducing water consumption by 21 percent per pound of product before the 2020 deadline
• Setting new targets for 2025, including a $200M investment in more fuel efficient vessels, reducing Scope 1 CO2E emissions by 10 percent

“As we transition to being more consumer centric, we are finding a common thread between telling our story about our sustainability and how it can also help us align with our consumer base. Our consumer base is interested in our efforts and those actions,” said Dennis Christou, Vice President Marketing N.A. “We need this to inspire other players to bring hope to the new generations because these new consumers are excited and are willing to engage with companies that make that investment and are doing the right thing.”

Dennis added that the team has seen an increase in demand for such stories on the buy-side, and that the company is working with partners to answer that demand.

“In general, we’ve seen that our retail partners have become more interested in increasing awareness and demand on the part of their consumers, who want to understand where their food is coming from, especially for the younger consumers—food defines who they are," Dennis remarked. "So, in the past, the retailer’s interest was to ensure the products were produced in a safe, sustainable manner, and now they want to get the story behind it. People want to relate to the farm, they want to relate to the environment.”

Intent on adding multiple layers to its existing legacy, Fresh Del Monte Produce is looking to spread its knowledge and its reach to potential partners that want to maximize the benefits of sustainable actions. We can’t wait to see what like minds join this initiative and the results it creates!

Fresh Del Monte Produce