IRVINE, 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.

RAIN AND COOLER TEMPERATURES COMING TO LARGE SWATH OF SOUTHWEST U.S. AND NORTHWEST MEXICO

There are two storms converging over Southern California, Arizona, and Northwestern Mexico over the next few days. Remnants of Tropical Storm Raymond coming up from Mexico will drop over 1” of rain in the next few days throughout the greater region of Northwestern Mexico and the southwest of the U.S. This storm will mix with a cold trough coming down from Alaska, bringing colder temperatures to the area.

Many major growing regions will see rain and cooler temperatures from these storms.

In Mexico, the following major areas will see rain today and tomorrow: Culiacán and Los Mochis, Sinaloa. Both are preparing for the start of their winter deal. Ciudad Obregón and Hermosillo, Sonora, are still shipping fall vegetables and melons. In Baja CA, the regions of San Quintín and Ensenada will see rain. San Quintín is still shipping tomatoes and other shade house vegetables while Ensenada is shipping berries. All these regions will see cooler temperatures this week and into next.

In the U.S., Yuma, AZ, will see over 1” of rain between today and tomorrow. The National Weather Service has issued a Flash Flood watch for all Southern Arizona. Yuma is kicking off their winter wet veg crop.

This storm will clear out by Wednesday but then the cooler air coming from Northwest will come through dropping temperatures 10 to 15° overnight.

Expect maximum temperatures in Yuma to go from 80° today to 69° on Thursday with minimum temperatures in the low 50°s.

The coastal California regions of Oxnard, Santa Maria, and Salinas will not see any rain from these storms.

CHILEAN BLUBERRY REGIONS EXPERIENCING HEAT WAVE

Major blueberry growing regions of Chile are currently experiencing above average temperatures. Since last week, maximum tempeartures have been in the upper 80°s and will peak today with maximum temperatures in the mid 90°s. The average high temperature for this of year is 76°. These warm temperatures will continue through this Friday before beginning a cool down on Saturday. Next week, maximum temperatures will be in the mid 70°s with minimum temperatures in the mid 40°s.

Look for a possible uptick in production this week.

These same locations are production areas for peaches, grapes, and nectarines out of Chile which should begin shipping sometime next month.

CALIFORNIA COOLDOWN BEGINS TODAY

California coastal growing regions experienced above average temperatures this past weekend with areas such as Oxnard reaching 93° on Sunday and Santa Maria getting up to 88°. Minimum temperatures were in the mid 50°s. These warmer temperatures should have helped the strawberry production.

Things will change tomorrow as the cooler air moves in and drops maximum temperatures down to 61° and minimum temperatures in the mid 40°s. Look for production from these areas to slow down.

In the San Joaquin Valley, where lettuces and grapes are still be harvested, look for maximum temperatures to drop from the mid 70°s down into the mid 60°s starting tomorrow and minimum temperatures will also drop reaching a low of 37° on Sunday and next Monday.

HURRICANE CENTRAL

Remanence of Tropical Storm Raymond is now dropping rain over the states of Sinaloa, Sonora, and Baja CA, Mexico, as well as Southern Arizona. There is no further activity in the Pacific at this time.

In the Atlantic, there is a disturbance about 500 miles east of Puerto Rico. This disturbance is expected to travel northwest avoiding any islands before turning north out into the Atlantic. We will update you Friday as to any changes.

Thank you as always for your support. We will be back later this week with another report.

Weathermelon

MOUNT MAUNGANUI, NEW ZEALAND - Buyers and kiwifruit-crazed consumers can breathe a sigh of relief after hearing the news that Zespri International's European kiwifruit harvest is again set to meet expectations for volume and quality. With strong global kiwifruit demand, Zespri strategically partners with growers across the world to provide steady access to the tastiest fruits they can grow.

“It’s been a tough season for some European growers this year, with a cold wet spring negatively affecting pollination and issues including the presence of the Brown Marmorated Stink Bug and Moira disease affecting kiwifruit and other local produce,” said Sheila McCann-Morrison, Chief International Production Officer.

Contending with natural pests and diseases can prove a challenge, which is why Zespri is involved in a number of trials to help local growers overcome these threats.

“Brown Marmorated Stink Bug is having a huge impact on European crops including kiwifruit and so we’re working with locals to address this threat, as well as continuing to invest significantly with our partners on mitigating the impact of the vine-killing disease Psa,” McCann-Morrison commented in a press release. “Our industry knows first-hand the risks associated with biosecurity and the significant costs associated with an incursion—if we can find ways to reduce the impact then the benefits will be immense.”

Zespri’s Northern Hemisphere harvest is currently underway, and the company is expecting to harvest around 19 million trays, or almost 70 tonnes of kiwifruit from orchards throughout France, Italy, and Greece.

“Despite the challenges, this season’s Northern Hemisphere crop is still expected to be around the same as the record set last year. That’s going to mean we can again provide strong returns to the local industry which is something we’re very proud of,” McCann-Morrison added. “And more broadly, with this fruit being grown and picked by locals and packed in local post-harvest facilities, we're continuing to strengthen our relationships with the local industry and make a positive local impact.”

Around 750 families make up Zespri’s European growers, and they all play a key role in the company’s global supply strategy, which supplies premium Zespri Kiwifruit all year round. Global demand for premium kiwifruit is on the rise, making the relationships that Zespri has formed with its European growers for more than 20 years all the more important.

“It’s a relationship that’s working incredibly well for both Italian growers, post-harvest operators, and distributors, as well as for Zespri and the New Zealand industry,” said McCann-Morrison. “It’s helping deliver greater orchard gate returns, jobs for locals, and is also leading to tens of millions of Euros being invested in orchards and post-harvest facilities. It’s also helping foster further collaboration including technical exchange through R&D, grower workshops and nursery visits in New Zealand, and other general support—all of which are helping boost production.”

Market access is another significant focus for Zespri as it chases growth and expansion.

“We’re committed to helping create access to new markets for European exporters as we have recently with Mexico so we’re ensuring an even greater number of consumers around the world can access our premium kiwifruit. Global supply, or Zespri Kiwifruit grown outside of New Zealand, is currently around 10 percent of all the fruit sold internationally by Zespri, but that will increase significantly along with demand,” continued McCann-Morrison. “At the moment we have around 3,100 hectares in the ground in Europe and that’s set to grow to around 5,000 hectares over the next five years.”

It’s not just the New Zealand-grown kiwifruit that meets Zespri’s strict quality standards, all of the company’s kiwifruit grown around the world have their quality managed through the Zespri System.

“Zespri’s purpose is to help communities around the world thrive through the goodness of kiwifruit,” concluded McCann-Morrison. “European growers are some of the best in the world and it’s great to be sharing our knowledge, systems, and varieties with them, and also to be learning in return.”

For more news on global produce, keep reading AndNowUKnow.

Zespri International

SALINAS, CA - California is currently saying sayonara to its 70-degree days in the sun. That means growers across all regions are gearing up for both the colder winter weather and the demanding holiday season. As a Thanksgiving stuffing essential, celery is slated to experience an uptick in sales. In anticipation of this, Pacific International Marketing is grooming its celery crops for the coming weeks, and Ray Cunanan, the Commodity Manager, took a beat to fill me in.

“We have one month left in Salinas and two months left in Santa Maria. Labor will tighten up in both crops as more product is moved to the desert,” said Ray. “We expect good quality this season.”

Ray also noted that the market is tight with good demand, though Pacific International is expecting a slightly lower volume than last year. Additionally, prices appear to be higher now than they usually are during this time.

“In order to meet our holiday demand, we will be harvesting Sundays and working overtime this season,” Ray added.

The company’s success with its celery crop was written in the stars, as Ray also mentioned that a recent heat spell followed by morning frost has caused Pacific International to be over five days ahead of schedule for its celery harvest.

Get ahead of the celery demand early this year, because those turkeys aren’t going to stuff themselves! And check back with us at AndNowUknow for all things produce.

Pacific International Marketing

WENATCHEE, WA - Stemilt Growers is upping the stakes of its category insights program, Fruit Tracker™, with a new video podcast series. Similarly to the info provided by Fruit Tracker, the podcast—dubbed Fast Facts—will share quick facts and analysis around performance for top fruit categories and feature industry experts like Roger Pepperl, Stemilt’s Marketing Director, and Brianna Shales, Senior Marketing Manager.

“Fast Facts 2.0 has arrived,” said Shales. “We’re rolling out this podcast-style analysis of category data to give retailers an easy way to digest facts that stood out to us in the latest set of Nielsen retail scan data. Whether they watch or listen, it’s a fast and fun way to understand how the total category is doing. It also offers advice for making small yet bold changes to elevate the category going-forward.”

The first episode, Fast Facts: The Cast, examines the U.S. apple category’s performance in October of 2019. The episode begins with a look at the overall apple category’s contribution to the total fresh produce department in October 2019 and compares it to the same timeframe the year prior, according to a press release.

“October is still in that transition time for apples, but it’s also a big selling month for apples, and the harsh reality is that we need to see bigger volumes of apples sold. Going big with promotions will help account for deflation in the apple category and help move the large crop that we have nationally this season,” said Shales.

Specifically, in October, apples were 6.9 percent of fresh produce sales, which was down 0.2 percent year-over-year. The Midwest region beat the average with 8.6 percent of fresh produce sales coming from apples, while the remaining regions fell just above or below the national average.

In terms of varieties, Gala led the pack with a 3.6 percent increase in volume sold year-over-year. Honeycrisp followed closely behind despite sales being flat. Fuji, Red Delicious, and Granny Smith finished out the top five, and all saw sales decline year-over-year.

“The Gala increase was a positive, yet when we consider the larger crop we have this year, there is room for improvement,” continued Shales. “All top five varieties can benefit from increased multi-variety promotions that are centered around moving volume. Bigger displays, creative merchandising tactics, and in-and-outs on larger pouch bag packs are all strategies Stemilt has in place for retailers to tap into to push more volume through the register.”

The first episode of the podcast also covered club apples and organics. Pepperl, a former apple buyer/merchandiser, advised those in the role today to “pick their favorites” when it came to new varieties and focus on messaging their unique attributes to consumers in order to increase trial and future purchases, according to a press release.

“The gas pedal isn’t there when it comes to organic apples and presents a real creative promotion opportunity for retailers,” added Shales. “The retailers that do organics best will often have 20 to 30 percent of their apple sales coming from organics. With the largest organic apple crop in history, this is the year to reward loyal organic shoppers and entice new ones via promotions.”

In October of 2019, organic apple volumes were up nearly 7 percent when compared to 2018 and about 10 percent of apple category sales.

“It’s time to sell more to these produce fanatics. We want to see the same multi-variety ad effort that is made for conventional apples made for bulk organic,” said Shales, before noting that increasing the bag size retailers carry on organic apples is one simple trick to garnering more sales. Specifically, Shales explained that selling in packs that are three pounds or larger is an easy way to ensure organic product is identified at the register while also increasing the average purchase size.

“And beyond that, Stemilt has a value opportunity on 5-pound pouch bags of Artisan Organics™ apples that retailers can take advantage of to give that organic category a volume boost,” Shales concluded.

Click here to listen to the very first episode of the podcast yourself! And for more fresh produce news like this, stay right here with AndNowUKnow.

Stemilt Growers

YUMA, AZ - As packaging that can be or has been recycled continues to give providers a leg up in consumer loyalty, Natural Delights has announced the launch of packs that are made from 100 percent post-consumer recycled plastic.

“Our new green packaging for tub containers will help to keep 800 tons of plastic out of landfills and oceans, reducing water consumption by 34 million gallons and eliminating 1,200 tons of CO₂ emissions,” said David Baxter, Brand Manager.

This is not the only area in which the company is going green, Baxter added.

"In addition to our plastic packaging, we are converting most of our display materials to kraft material, which is certified by the sustainable forestry initiative. This change increases the amount of recycled material used by 50 percent and improves the recycle-ability of the box,” he said.

Natural Delights’ new green packaging will apply to all tub containers and roll into stores this month, according to a press release. The company has made significant investments in converting its date packaging to be among the most sustainable options on the market for the category.

“We continue to invest in packaging sustainability in order to do what is best for our business, consumers, and the environment," Baxter concluded.

The date provider offers a line of Whole, Pitted, Organic, and Pitted Organic Medjool Dates; Premium Chopped Medjool Dates; and Medjool Date Rolls with flavors like coconut, almond, and cacao with pecans. As more and more categories look to answer the call for sustainable options in packaging, AndNowUKnow will report on the latest.

Natural Delights™

PHOENIX, AZ - Sprouts Farmers Market is fortifying its leadership team with the addition of Joel Anderson to its Board of Directors. The news of Anderson joining the Board follows the announcement that Steve Townsend has stepped down from his position.

“It is an honor to welcome Joel to our Board of Directors,” said Jack Sinclair, Chief Executive Officer and a Director of Sprouts Farmers Market. “Joel’s deep experience as a high-growth retail executive at companies of scale will be extremely valuable to our Board as we continue to develop our strategy for long-term growth and value creation.”

Since the start of his career, Anderson’s resume has included many leadership positions in the retail sector, including various executive positions at Toys “R” Us over a 14-year period, President of the Retail and Direct Business units for Lenox Group, and President and Chief Executive Officer of Walmart.com from 2011 to 2014.

Currently, Anderson serves as the President, Chief Executive Officer, and Director of Five Below, a leading high-growth value retailer offering trend-right, high-quality products, according to a press release.

Chairman of Sprouts’ Board of Directors, Joseph Fortunato, commemorated Townsend’s time with Sprouts Farmers Market, stating “Steve has served on the Sprouts Board since 2013, and we extend our gratitude and appreciation for his contributions.”

As the leadership in the grocery retail industry continues to wax and wane with talent, know-how, and unique expertise, AndNowUKnow will continue to report.

Sprouts Farmers Market

MICHIGAN - With growth on its mind, retail giant Kroger is pushing ahead with expansion plans across the U.S., but has recently been making efforts to boost its presence in the Michigan retail space. Earlier this year, Kroger announced its plans to invest $97 million in the state, an investment that includes two new stores, 11 existing store remodels, and three new fuel centers. The retailer has been laying the groundwork in the state for some time now, as Kroger built a new $25-million facility in 2017 to handle the anticipated increase in demand. Now, the retailer is ramping up its efforts, holding a hiring event to fill more than 500 positions at its stores across Michigan.

“We are seeking friendly, hard-working associates for a variety of positions to help serve our amazing customers during the holiday season and beyond,” said Stephanie Spangler-Opdyke, Human Resources Manager for The Kroger Co. of Michigan.

On-site interviews will be held on November 18 in any one of Kroger’s 120 Michigan stores, but will only be available to applicants who have already applied online, according to WWJ 950. New employees will join the retailer’s Michigan team of more than 18,000 associates.

“Kroger is a great place to work, with various career paths for associates and incredible opportunities for advancement," continued Spangler-Opdyke. "We also make the application process easy by offering open interviews during the hiring events and enabling candidates to apply online from anywhere.”

For more retail expansion news, keep reading AndNowUKnow.

Kroger

NOGALES, AZ - Good things come to those who wait, and in this case Mother Nature saw fit to make the industry and those we serve wait for melons coming out of Mexico. Though the weather might have set harvest back just over a week compared to previous years, yield is coming up and flavor is more than on track, according to the experts.

“Quality is looking fantastic and among some of the best we have seen,” Cesar Pacheco, Sales Manager of Giumarra Nogales, shares. “Volume will also remain constant throughout the fall season.”

Though heavy rains during the planting and growing frame delayed the season by about 10 to 12 days, the melons themselves are looking good and will be here in time for those post-Thanksgiving holiday promotions.

“The melon market is slowly moving up,” Cesar says when I ask about where the category currently stands in terms of volume. Demand, he adds, looks as if it will closely match offerings. “Overall, it might slow down for a few days because of the holiday, but right after Thanksgiving, demand will increase.”

Honing in on key attributes drawing shoppers in, besides the stellar quality Giumarra is currently seeing come in, Cesar tells me the team is seeing that larger sizes are in heavier demand than smaller ones.

As we look toward the fruits of our patience, and the onset of holiday demand, AndNowUKnow will continue to keep you up to date on all the key categories influencing our industry.

The Giumarra Companies

ANAHEIM, CA - Every produce show is a golden opportunity to reconnect with old friends and partners from across the industry. With these “catch-ups,” we get to see how things have changed from the previous year, including new promotions and steps in our friends’ journeys. Tracey Lewin, Vice President of Sales and Operations for the Allen Lund Company, took time to chat with me about how she is settling into her most recent role.

“Over 30 years ago I began with the Allen Lund Company in the accounting department where I lasted for about a year and a half or so and then I moved into the sales department—particularly refrigerated and produce,” Tracey told me. “From there I worked my way up and became the Assistant Manager, then the Manager of the Los Angeles office, and in April of this year I was promoted to Vice President.”

Tracey has a busy plate with the new role, but she is more than up to the task. She is challenged with overseeing 11 of the company’s 35 branch offices, and from headcount freight management to management styles and regional differences, each office holds its own special characteristics.

“I’m learning more and more about these offices, getting to know the managers even better, and I’m really embracing this opportunity to continue to grow with the company,” she said.

For over 25 years, Tracey has attended just about every show that the company does, and yet she still finds ways to extract value and fun out of every single one.

“We really appreciate the opportunity to meet with our shippers, growers, and even other carriers that come to see us—it has been a very beneficial relationship for all parties involved and we really appreciate PMA,” she commented.

For more exclusive show content, keep reading AndNowUKnow.

Allen Lund Company