WESTBOROUGH, MA - When the going gets tough, the tough get going, or in the case of our industry, when the retail market gets competitive, the competitive go after the retail market at a new angle. BJ’s Wholesale Club announced a new strategy this week—which will kick off in 2020—and one that sees it downsizing its product offerings while scaling up its retail operations in order to focus and grow on what it does best.

“First, we're making a sustained effort to transform and simplify our assortment, including continuing investments in private label. Our simplification efforts began in general merchandise, which is upon 5 percent on a two-year stack basis as well as for 2019 year-to-date. The work we've done in this area leaves us in a strong position for Q4 and beyond,” Christopher J. Baldwin, Chairman and Chief Executive Officer, said on an earnings call. “We're moving forward with the transformation in our edible and non-edible grocery business with the goal of driving sales growth with a simpler assortment…We're also seeing good results from the clubs where we have this assortment in place…We're taking a very deliberate approach in this area. Taking time to make sure we get the simplified the assortment right.”

Baldwin went on to explain that the retailer’s brands are central to providing great value to its members—another area BJ’s has been investing in and, as a result, reported record MFI driven by increases in paid members and higher-tier memberships. By limiting its assortment of brands, the retailer is hoping to drive growth through entry into new categories. This strategy has already been applied to its latest Michigan expansion.

“We plan to expand our strategic footprint. We opened two clubs and gas stations in Eastern Michigan this month. As we've said before, we took a very new approach to marketing to raise awareness in these clubs. We opened these clubs with about 1,000 fewer items than our typical clubs along with new items such as an expanded prepared food assortment, localized apparel, local craft beers, and a snack shop. Though still in the early days, we're very pleased with the initial membership response and our near-term sales trends,” Baldwin continued.

Additional highlights BJ’s reported in its financial report included the following:

• Net sales for the third quarter of fiscal 2019 increased 0.1 percent to $3.2 billion, compared to the third quarter of fiscal 2018.
• Comparable club sales excluding gasoline sales increased 1.1 percent for the third quarter of fiscal 2019, compared to the third quarter of fiscal 2018.
• Income from continuing operations of $55.2 million for the third quarter of fiscal 2019, compared to income from continuing operations of $54.6 million in the third quarter of fiscal 2018.
• Adjusted EBITDA for the third quarter of fiscal 2019 increased 3.8 percent to $154.1 million, compared to the third quarter of fiscal 2018.
• Net income was $55.1 million, or $0.40 per diluted share, and adjusted net income was $56.6 million, or $0.41 per diluted share, for the third quarter of fiscal 2019.
• Net cash provided by operating activities was $221.5 million for the first nine months of fiscal 2019. Free cash flow was $77.1 million for the first nine months of fiscal 2019.
• Company updates outlook for fiscal 2019.

“We delivered solid margin improvement and continued earnings growth in the third quarter,” said Baldwin in a press release. "We remain focused on executing against our strategic plan and transforming our business to be well positioned for the long-term. The board's decision to authorize a stock repurchase program reflects the strength of our cash flow and confidence in our growth strategy and long-term outlook."

To read BJ’s Wholesale Club's financial report in its entirety, click here. And for more breaking grocery retail news as it affects fresh produce, keep reading AndNowUKnow.

BJ's Wholesale Club

LADY LAKE, FL - Earth Fare is making what Cardi B calls money moves, or in industry terms: a couple of strategic advances in multiple markets. This week, the specialty grocer announced a new store in Lady Lake, Florida, continuing its expansion in the Sunshine State, and a new addition to its partnership with Instacart.

“Our partnership with Instacart to provide our customers with a convenient pickup option, in addition to delivery, is one more way Earth Fare makes it easy to live a healthier lifestyle,” said Frank Scorpiniti, President and CEO.

According to local news source Villages-News, the new Earth Fare site has been a beehive of construction activity in the past few months. Residents are excited at the arrival of a popular health-conscious grocery store, and Earth Fare is making sure that its latest store meets every standard.

Specifically, its latest stores are constructed with sustainability in mind, utilizing reflective roofing, LED lighting, and skylights throughout the store to bring in that Florida sunshine. There are recycling stations to allow for composting and recycling in the Earth Fare Café, which also offers compostable to-go containers made from plant-based, recycled materials.

The new Lady Lake store is on target to open this coming spring at the intersection of U.S. Hwy. 27/441 and Fennell Blvd.

For more money moves happening in the grocery retail sector, AndNowUKnow will continue to report on the latest buzz.

Earth Fare

MUNICH, GERMANY - The reusable packaging solutions provider recently announced the launch of its new company website. As it offers expert insights into the world of IFCO, the goal of the new website is to spark conversation for supply chain experts and decision makers.

“At IFCO, we know there’s always more to learn. As supply chain professionals, we are eager to stay informed to continuously improve our services—because success and innovation are not possible without information. We believe that sharing our knowledge will help and inspire other supply chain decision makers to achieve their business goals and stay ahead in the market. Therefore, the new IFCO website was designed as an information hub for discussion and knowledge transfer—to create a better supply chain for us all," stated Wolfgang Orgeldinger, CEO, in a press release.

With a user-friendly design and easy navigation, visitors to the site will quickly find information about IFCO’s products and services. One exciting innovation is the CEO Insights section, a platform in which some of the biggest retail trends affecting the industry will be discussed.

“Technological change, new customer behaviour, and growing online sales of fresh produce change the grocery industry,” stated Orgeldinger. “This transformation will require new tools, strategies, and technologies. We want to share our expertise in these areas to make sure our customers stay on top of trends and lead the way.”

In the “Services & Products” section, website visitors will find all the information about IFCO’s reusable plastic containers (RPCs), the SmartCycle™ pooling system, and digital services offered. The website also provides detailed technical information and downloadable data sheets for the complete range of over 70 RPCs, which can be used for fresh fruits and vegetables, meat, seafood, eggs, bread, and other items.

According to a press release, the IFCO SmartCycle is a circular economy model that ensures a more sustainable and efficient supply chain. RPCs are shared in a continuous loop: from delivering clean RPCs to producers, to collecting used RPCs from retailers, inspecting, cleaning, and storing them until the next loop. On its new website, IFCO provides multimedia insights into all of these processes.

For example, IFCO offers a view into its washing facilities, where best-in-class washing processes ensure hygiene and food safety. Website visitors can also experience why IFCO RPCs are suitable for automated warehouses and what sets them apart from single-use packaging. Decision makers will learn how their companies can benefit from IFCO by reducing costs, increasing food quality, and minimizing environmental impact.

The new online IFCO Magazine is the way for supply chain experts to stay informed. It offers interesting articles and news about topics such as food safety, sustainability, automation, innovation, and digitization. Reference cases and market studies exemplify how companies can improve their supply chains with the support of IFCO.

As we continue to see what supply chain innovations are in store for the industry, keep reading AndNowUKnow.

IFCO Systems

IRVINE, CA - Welcome back to another Weathermelon Weather Report.

A major storm system is brewing in the Pacific that will bring cold temperatures and possible rain to all major growing regions in the Western U.S. and Mexico next week. Regions from Salinas in the north, down the coast of California, into the deserts of Coachella and Yuma, and as far south as Culiacán, Sinaloa, will see cooler temperatures and have the possibilities of rain next week.

Below is more detailed information geared toward specific commodities.

CALIFORNIA STRAWBERRIES TO SEE RAIN AND COLD NEXT WEEK

Those who deal in strawberries should plan for a possible reduction in volume and quality next week out of California as the first winter storm of the year hits major growing regions.

As of right now, the forecast is for a winter storm to come ashore next Wednesday and remain through Friday. The storm may bring up to 2” of rain over the three days and with it cold temperatures that may slow production. Maximum temperatures starting Wednesday will only reach into the mid-50°s and minimum temperatures will be in the low 40°s, with isolated minimums in the 30°s near Santa Maria. These cooler temperatures will last at least through the weekend of November 30.

This storm will also affect the Baja California berry regions with rain and cold temperatures from Ensenada in the north to as far south as Vizcaíno. The Coachella Valley will see cooler temperatures and a slight chance of rain.

You may want to plan ahead and beat the rain.

Florida, on the other hand, is forecast to have good weather over the next ten days with maximum temperatures in the low 80°s and minimum temperatures in the mid-60°s. The only blip on the radar for these regions are cooler temperatures this Sunday and next Monday when maximum temperatures will be in the low 70°s.

SAN JOAQUIN CITRUS TO ALSO SEE COLDER TEMPERATURES AND CHANCE OF RAIN

The San Joaquin citrus regions of Delano, Visalia, and Orange Grove, will also see colder temperatures next week with minimums dipping into the 30°s tonight and lasting all next week. The coldest night over the next ten days will be Saturday, November 30, with the minimum dipping down to 32°. Maximum temperatures all next week will only be in the low 50°s. There is also a chance of rain of up to an inch next Wednesday and Thursday.

Could this have a negative effect on citrus? Check with your shippers.

RESULTS OF RAIN THIS WEEK IN THE SOUTHWEST

The remnants of Tropical Storm Raymond caused some havoc throughout the Southwest U.S. and Northwest Mexico these past few days. Yuma saw .65” of rain on Wednesday, with all of it coming in the matter of one hour around 3:00am Wednesday morning. You may check with shippers to see if there was any impact. Yuma is anticipated to receive rain next week also from the same storm hitting California.

Portions of San Diego’s avocado growing regions saw up to 1” of rain between Tuesday and Wednesday. Rain is always welcomed in this part of the world by tree crops such as avocados.

We don’t have rain totals for Mexico, but we were told intense rain did fall in regions of Sinaloa and Sonora, including Culiacán and Ciudad Obregón, on Tuesday and Wednesday. I would be extra careful of green beans and squash coming from Sinaloa and Sonora right now due to possible rain damage.

HURRICANE CENTRAL

With nine days left in the hurricane season, Tropical Storm Sebastian has formed in the Atlantic. The storm is over 1,000 miles from the coast of the U.S. and is heading northeast back toward the northwest coast of Africa.

There is nothing brewing in the Pacific.

Thank you for your support and have a great weekend.

Weathermelon

WENATCHEE, WA - Forward-thinking companies like Stemilt Growers are thinking beyond the holiday season, ramping up spring programs and encouraging retailers to look ahead. This is made easy through the apple provider's Honeycrisp apple program, which includes premium programs like Honeyhill™ Incredible Honeycrisp apples and Artisan Organics™ Honeycrisp.

“We have a state-of-the-art Honeycrisp program that allows retailers to carry a consistent quality of Honeycrisp apples in their stores nearly year-round,” said Roger Pepperl, Marketing Director. “We have added in beautiful Honeycrisp strains as well as a fantastic line-up of organic Honeycrisp apples that will delight consumers.”

Pepperl noted that over the years, Stemilt has evolved into a top supplier of the variety, using its years of experience to perfect the art of growing premium Honeycrisp varieties. It has now added Premier and Royal Honeycrisp strains to its lineup. According to a press release, Premier comes off the tree early in the growing season and kicks off the Honeycrisp season with great color and qualities. Royal is a high color Honeycrisp strain with high starch reserves, which helps Stemilt with long-term storage needs. Royal Honeycrisp not only extends the variety’s season but also helps Stemilt deliver premium Honeycrisp with fall-like flavors throughout the year.

“We have recognized the demand of this apple variety for the past several years and have planted around that demand with several strains and new Honeycrisp crosses,” explained Pepperl. “Those trees are now responding by providing us increased volumes and high qualities of the apple eating experience that consumers are after.”

In addition, Stemilt created a branded box in which to showcase its premium Honeycrisp apples. Honeyhill Incredible Honeycrisp cartons are carefully packed with high color and high-quality Honeycrisp apples. Stemilt also grows Honeycrisp apples organically under Stemilt’s Artisan Organics brand and packs its petite-sized Honeycrisp in the popular kid-size fruit brand, Lil Snappers®.

“Honeycrisp is available in bag or bulk, conventionally or organically, and in various sizes so that any type of consumer will be satisfied,” remarked Pepperl. “Our organic consumer will especially be happy because our Honeycrisp crop is nearly 40 percent organic. With this, we will also be able to provide the organic consumer high quality Honeycrisp apples nearly year-round.”

By planting new Honeycrisp strains and trademarking apples from the same breeder that originally developed Honeycrisp, Stemilt has been able to strengthen its crop over the past several years. It has also developed harvest and packing protocols to provide Honeycrisp with all the extra care it needs.

“Picking Honeycrisp is quite tedious at Stemilt, but that extra care is how we ensure quality first,” said Pepperl. “Fruit is picked by hand, stems are clipped, and then crews will hand place each apple in a specific pattern in the bin to prevent bruising. On the packing side, it’s all about having specific storage regimes for Honeycrisp and packing to order for maximum freshness.”

Outside of supplying three strains of Honeycrisp for near year-round supply, Stemilt has amplified its apple presence by adopting successors to Honeycrisp, Rave®, and SweeTango® as signature apples. Both have Honeycrisp as a parent and come from the same breeder at University of Minnesota that discovered Honeycrisp. Rave comes off the trees in late July to kickstart the apple season, while SweeTango arrives a few weeks later.

“There is a high demand for flavor among consumers and that’s what Honeycrisp and its successors have brought to the apple category,” said Pepperl. “Our Honeycrisp program has been designed to help retailers extend their season, differentiate on flavor, and expand premium offerings in the organic category. Together, we can keep building successful plans to grow this variety and the apple category.”

It’s not even December and Stemilt already has me longing for spring! Keep reading AndNowUKnow for all of your program updates.

Stemilt Growers

YUMA, AZ - As we’ve seen in recent crop updates from companies throughout California, the state experienced some unanticipated cold weather in October that ground some growing operations to a halt. The development of those crops has been carefully monitored, as many growers are just beginning to transport their operations from Salinas, California, to Yuma, Arizona. Pivoting off of the last couple months, the industry as a whole is bouncing back with a bountiful supply ahead of the holidays. Pacific International Marketing is one of such companies, and Commodity Manager Jeff Hyosaka took a break from the hustle and bustle to detail this strategic move.

“We have begun to ship out of Yuma and the Scottsdale area coolers, but it won’t be a seamless exit from the North and into the desert,” said Jeff. “We are transitioning pretty much all of our categories. With the major players starting cross-dock loading as of November 18, we need to be up and loading in Yuma as soon as possible on all commodities.”

Pacific International Marketing grows items that range from broccoli and leafy greens to celery and cauliflower. Because of the frost that encroached on us this fall, the company is pivoting to meet the increasingly demanding needs of the market.

“The warmer weather has accelerated the end dates up North, but the desert has not begun with a steady stream of production by any means,” Jeff told me. “The Yuma area experienced some of the coldest nighttime temperatures that we’ve seen in many years during the week of October 28.”

Jeff continued with what retail and foodservice partners can expect following this transition. Proceeding with cautious optimism, he told me that it’s too soon to tell what December will bring, but Mother Nature has a way of filling in or widening the gaps.

We at AndNowUKnow wish the best of luck to growers throughout this season’s transition.

Pacific International Marketing

TORONTO, CANADA - Last week, we reported that Loblaw Companies Limited planned to enhance its PC Express service to continue growing the company. The retailer took its first steps with the initiative today, announcing that it has extended the assortment and convenience of PC Express with an online marketplace, adding brands and products that Loblaw has not historically stocked. This will include additional items for home and kitchen categories across several of its stores, including Real Canadian Superstore®, Atlantic Superstore®, and Loblaws®.

"Millions of Canadians visit our stores and online shops weekly, looking for inspiration and convenient access to food, home, and health products. Through this expanded PC Express offering, we will provide them with a curated, edited assortment of products that complement their current shop, from some exciting new vendors," said Garry Senecal, Chief Customer Officer. "This is another example of how we can offer even more to customers, simplifying their searching and shopping experience for many of their everyday needs."

According to a press release, the national online assortment will reach beyond the current in-store selection and will be the largest range of products available to Loblaw customers to date. In addition to earning PC Optimum points, products will be delivered directly to homes or available for in-store pickup. At launch, new third-party companies will be introduced in five expanded categories and new products will continue to roll out.

"A curated marketplace is based on the idea that, as they shop with us, Canadians will welcome the chance to buy complementary products from complementary brands. For example, as new parents prepare for a baby with diapers and formula, they would probably find it very convenient to be able to order blankets, wash clothes, or even a crib through us," said Hesham Fahmy, Vice President, Loblaw Digital. "The intent of this service is to better support the needs of Canadian families, with easy ordering through the PC Express service and returns through many of our stores."

Earlier this year, Loblaw acquired a Las Vegas tech company, PFTech, to ensure a seamless integration of the online marketplace within the PC Express platform. PFTech is a leading marketplace platform developer with over a decade of experience. This technology will ensure a positive customer experience across the Loblaw digital footprint.

To see how other retail giants are utilizing technology to grow their business, keep reading AndNowUKnow.

Loblaw Companies Limited

ROSEVILLE, CA - As an avid energy bar consumer—you can find me on any given day at the ANUK office sitting in my orange chair and devouring a protein bar—I will say that the category has been short on one delectable fresh produce category in particular, and that’s prunes! But this problem won’t persist for much longer, as the California Prune Board announced that Fourpoints^® is bolstering its prune-centric ingredient list with California prunes.

“It’s refreshing to partner with a company that truly believes in the power of prunes,” said Donn Zea, Executive Director of the California Prune Board. “Fourpoints not only recognizes the remarkable benefits that prunes offer, but they’ve gone the extra mile to feature the California Prunes brand on packaging in prime real estate near the list of ingredients where health-conscious consumers gravitate.”

Lauded as the first and only energy bar to feature prunes, according to a press release, Fourpoints’ California prune-centric product is disrupting the energy bar market by taking full advantage of the fresh, naturally sweet taste and exceptional nutritional profile of California prunes—characteristics that are in large part thanks to their ideal growing conditions and high environmental standards and craftsmanship when growing and drying the crop.

“California Prunes have a low-glycemic index meaning a slower rise in blood sugar that increases satiety to delay hunger during exercise. This makes prunes an ideal energy source,” said Leslie Bonci, Registered Dietitian, Sports Nutrition Expert, and California Prune Board Nutrition Consultant. “California Prunes deliver the nutritional clout of macros (carbohydrates and fiber), micros (vitamins and minerals), and phytos (polyphenols). They are neat little bites that add big taste delight.”

To truly highlight all the value that California prunes are adding to Fourpoints’ energy bars, the packaging has been revised to feature the new California prunes brand.

“The California Prunes brand represents all that makes California Prunes exceptional. It’s more than a logo and a tag line, it’s a statement about being the best,” said Zea. “California Prunes are a versatile and functional ingredient, making them particularly attractive for manufacturers, such as Fourpoints.”

The California Prune Board and Fourpoints are also teaming up on strategic integration opportunities, including co-promotion via special events, social media, outreach, and sampling—all of which showcase just how unique Fourpoints bars are. Specifically, the brand’s energy bars are crafted to offer hours of slow-burning energy.

“The energy bar category is crowded and full of the same old date-based and syrup-based bars,” said Kevin Webber, Co-Founder of Fourpoints. “You have to have a one-of-a-kind product to stand out, and for us, that means a one-of-a-kind ingredient: California Prunes. We created our product out of both passion for outdoor recreation and out of personal need for a low-glycemic, better functioning bar inspired by our families fight with diabetes. We use only the highest-quality ingredients, like prunes—exclusively sourced from California— to make Fourpoints bars. Those seeking action and adventure deserve an energy bar that delivers clean energy, tastes amazing, and is easily enjoyed on-the-go, too. Fourpoints and California Prunes deliver on both.”

Fourpoints energy bars—which come in five flavors: Alpine Apple Pie, Backcountry Banana Bread, Mountain Mocha Espresso, Powder Day PB&J, and Trailhead Gingerbread—are available nationally at REI, regionally in the Denver area at Safeway and King Soopers, and online. Retailers looking to energize their produce aisles shouldn’t be shy in nabbing Fourpoints for their stores.

To stay ahead of the latest produce news like this, keep reading AndNowUKnow.

California Prune Board Fourpoints

PELION, SC - As we head into the holiday season, what could be better than the gift of leafy greens? Perhaps the news that WP Rawl, grower, processor, and shipper has begun processing leafy greens at its Bunnell, Florida, facility.

“Processing in Florida is scheduled to run from now until the first week in January,” said Ashley Rawl, Vice President of Sales, Marketing, and Product Development. “Our ultimate goal would be to make processing continue in Florida year-round. We are excited about the benefits of growing, harvesting, processing, and shipping within the same state.”

In 2013, WP Rawl first broke ground on the farming and packing shed operation in Bunnell, Florida, that included a 34,00-square-foot facility. According to a press release, increase in demand of both conventional and organic products sparked the company’s desire to add additional acreage. After three years, WP Rawl has added its first value-added processing line within the original facility.

The entire production line was built with sustainability in mind, utilizing 75 percent of existing equipment originally used at the main headquarters in Pelion, South Carolina. The new line will support current production capacities as well as offset growing demand for fresh leafy greens this holiday season.

The additional processing facility also brings more production capacity, which allows WP Rawl greater flexibility to service its customers. Current Southeast regional customers could potentially see a reduction in food miles, which allows for fresher product to be received. WP Rawl is thrilled for the ability to have more options to better service its customers and see to their needs.

For the latest in what’s happening in the produce world, keep reading AndNowUKnow.

WP Rawl

HOUSTON, TX - Yesterday, Sysco Corporation announced that a new Chief was to join its ranks. Michael Foster will be leading the info sector as the new Chief Information and Technology Officer; he will be stepping into his position on December 2. Foster will help shape the company’s broader strategic direction and future growth agenda moving forward.

"We are very pleased to welcome Michael to Sysco,” said Tom Bené, Sysco's Chairman, President, and Chief Executive Officer. “His deep background in complex supply chain and logistics businesses, as well as his experience leading digital transformation, infrastructure modernization, and business integration initiatives at a global scale are critical to Sysco as we look to increase the technology-enabled nature of our business."

According to the press release, Foster will serve as Sysco’s Senior Technology Leader with responsibility for all aspects of the company’s global technology agenda. Foster will be taking on his role with a bit of ease; prior to joining Sysco, he was the Executive Vice President and Chief Information Officer for CN Railway. While there, Foster was responsible for information technology, operational technology, and information security. Before joining CN Railway, he spent more than 20 years at Federal Express in various technology leadership and executive roles across multiple global subsidiaries.

We at ANUK extend our congratulations to Michael Foster on his appointment! Keep up-to-date with us as we bring more appointments and hirings in all things foodservice.

Sysco