WASHINGTON, DC - As part of its efforts to enforce the Perishable Agricultural Commodities Act (PACA) and ensure fair trading practices within the U.S. produce industry, the Department of Agriculture (USDA) has restricted three produce businesses, imposing sanctions after each company failed to meet their contractual obligations to produce sellers and pay reparation awards issued under the PACA.

Direct from the USDA Agricultural Marketing Service:

These sanctions include suspending the businesses’ PACA licenses and barring the principal operators of the businesses from engaging in PACA-licensed business or other activities without approval from USDA. By issuing these penalties, USDA continues to enforce the prompt and full payment for produce while protecting the rights of sellers and buyers in the marketplace.

The following businesses and individuals are currently restricted from operating in the produce industry:

• Farm Fresh Packers LLC, operating out of Pompano Beach, Florida, for failing to pay a $120,947 award in favor of a North Carolina seller. As of the issuance date of the reparation order, Miranda M. Pfaff was listed as a member of the business. Another principal of the business at the time of the order was Jeff Pfaff. He has challenged his responsibly connected status.

• Ciaccio Produce Company LLC, operating out of Brighton, Michigan, for failing to pay a $29,447 award in favor of a Michigan seller. As of the issuance date of the reparation order, Anthony S. Gelardi III was listed as a member of the business.

• Martinez Fresh Produce LLC, operating out of Dallas, Texas, for failing to pay a $24,669 award in favor of an Arizona seller. As of the issuance date of the reparation order, Arturo Martinez Isguerra was listed as a member of the business.

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in USDA’s issuance of a reparation order that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders, may not be employed by or affiliated with any PACA licensee without USDA approval.

The PACA Division, which is in the Fair Trade Practices Program in the Agricultural Marketing Service, regulates fair trading practices of produce businesses that are operating subject to PACA, including buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry.

In the past three years, USDA resolved approximately 3,500 PACA claims involving more than $58 million. PACA staff also assisted more than 7,800 callers with issues valued at approximately $148 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

For more information, contacts, and to read the full press release, please click here.

USDA's Agricultural Marketing Service

REEDLEY, CA - The produce industry lost longtime member Dean Thonesen last week after a long battle with cancer. Mr. Thonesen passed away October 29.

Mr. Thonesen served on the California Fresh Fruit Association’s Board of Directors from 2002 to 2019. In 2008, he joined the association's Executive Committee and remained there into this year.

The CFFA noted in an announcement that, throughout the years, he was a familiar face at many association activities and functions, known for constantly showing integrity and passion for the industry.

In addition, the CFFA touted Mr. Thonesen’s leadership and positive influence, stating that his direction helped steer the organization through countless challenges.

“Dean was a fantastic ambassador for the California fresh fruit industry. He was an active member on our Board of Directors and a trusted advisor to Association leadership,” Ian LeMay, President of CFFA, shared with our team. “He was always a calm voice and a friendly smile in any room he walked into, the kind of person that made coming to work worthwhile, and his presence will be sorely missed.”

Mr. Thonesen is survived by his wife Mary, son Greg, family, and friends.

A visitation has been set for Friday, November 8, at the Christ Lutheran Church in Reedley, California, and a celebration of Mr. Thonesen’s life will take place on Saturday, November 9. The location for the Saturday event is yet to be determined, but will be followed by a lunch at the Kingsburg Gun Club.

Our team at AndNowUKnow joins the CFFA in sending thoughts and prayers out to all those affected by the loss.

SALINAS, CA - What makes our industry so great? I could list several reasons, but one that stands at the forefront is our resilience and compassion in the face of adversity. D’Arrigo California and J. McFarland Wines showcased both of these qualities during their 2nd Annual Sip, Bite, and Turn up the Pink event to raise awareness and funds for the Breast Cancer Research Foundation (BCRF).

The idea for the event originally began between D’Arrigo California’s Director of Marketing and Culinary, Claudia Pizarro-Villalobos, and Stephanie McFarland, Owner of McFarland Wines. Both companies are supporters of the BCRF.

“We have the BCRF pink ribbon logo on our Andy Boy commodities (that are wrapped or have a tag) which include iceberg lettuce, shrink wrap broccoli, cauliflower, romaine hearts, broccoli rabe, and sweet baby broccoli. In addition, we have the BCRF logo on all our Andy Boy promotional items and cartons to raise awareness and underscore that the consumption of fresh fruit and vegetables help maintain a well-balanced and healthy lifestyle,” stated Pizarro-Villalobos.

According to a press release, D’Arrigo California has been a proud supporter of the BCRF since 1999 and has donated over $1.85 million to the foundation.

“J. McFarland Wines is pleased to join D’Arrigo California in their support of the Breast Cancer Research Foundation. The Sip, Bite, and Turn up the Pink event held at D’Arrigo California headquarters was a great success and took place in October to honor breast cancer awareness month and survivors. We would like to thank all who joined us in the fight against breast cancer that evening to raise funds,” said McFarland.

J. McFarland also has a pink ribbon on the label of its Prismatic White Wine Blend that launched in 2016. With the new label, J. McFarland began to contribute 10 percent of the wine sales to BCRF.

J. McFarland, Tondré, Morgan, Scheid, Mid Life Crisis, and Odonata were six local wineries that poured at the event. The wines were paired with gourmet bites prepared by Chef Jason Giles of Salinas Valley Memorial Hospital, Chef Esteban Jimenez of Rancho Cielo, Luigi’sRestaurant, Star Market, Gourmet Olive Oils from Trio Carmel and Dona Esther’s Restaurant. The evening finished with pink ribbon cookies donated by Royal Deli and Bakery. Guests also enjoyed a paint session lead by Daphnee Parachini, owner of Roaring Mice Paint Studio.

“I am thrilled to announce that we had over 100 guests in attendance and raised over $5,000 for the Breast Cancer Research Foundation,” concluded Pizarro-Villalobos. “We look forward to next year’s event in October 2020 to continue to raise awareness and funds for breast cancer research.”

The event was supported by City Council Member Steve McShane and Monterey County Supervisor Luis Alejo. Both elected officials presented a Certificate of Recognition to congratulate D’Arrigo California and John D’Arrigo, President, CEO, and Cairman of the Board, for his continued contributions to increase awareness and funds for the Breast Cancer Research Foundation.

Thank you to D’Arrigo California for continuing to be such an example to the industry!

D'Arrigo California

KINGSVILLE, ONTARIO - Can someone say R&D heaven? SUNSET^® Mastronardi is pulling out all the stops again this year and most recently with an addition to its Bombs™ family with the coveted Honey Bombs™. The sweet-like-honey golden snacking tomato follows the success of Flavor Bombs® and Sugar Bombs™. I had the great opportunity to chat with Dean Taylor, Vice President of Business Development, at this year's PMA Fresh Summit to discover all the company has in store with its explosive family of products.

“They have a crunch like no other and a great apple-like flavor,” Dean shared with me. “They are very unique; beautiful; fun; crunchy; and a really, really enjoyable tomato. The snacking tomato is seeing explosive growth right now and is about 35 percent of the total tomato category.”

In the next few years, SUNSET expects the market share to increase up to a whopping 50 percent. Consumers crave sweet things, and if you ask me, a healthy treat that has an indulgent flavor to boot is the perfect combination of elements for a successful product.

To hear more about it from the man himself, watch our exclusive video above! And don’t forget to stay tuned to AndNowUKnow for all of the post-Fresh Summit content and the great news to come!

Mastronardi Produce (SUNSET)

SACRAMENTO, CA - Well, well, well, it looks like there are many in our industry who relish in looking fear in the face. Instead of cowering from our latest Find the Apple logo challenge, former contest champions returned in droves to try to win our $100 prize. While each and every one of them perfectly captured their smiling faces, pointed finger, and the ANUK apple logo (of course!), only two managed to score the first place spot on the buy- and supply-sides.

Gloria Olivo, Sales Assistant for Beachside Produce, frightened the ANUK team with one of the fastest submissions we’ve seen to date. Her speed helped her win that $100 prize and the respect of all of us at The Snack Magazine headquarters.

“We always look forward to getting The Snack Magazine. Not only is it informative, but the cover contest is always fun and challenging for all of us in the office,” Gloria said upon learning of her win. “I plan to use the winnings for a Beachside ‘Snack’ party. Snack it forward!”

On the supply-side, Brandi McGuire, Senior Sourcing Specialist for Topco, followed closely behind Gloria, breaking the record for the buy-side and beating out a few familiar faces and former title-holders. Now she’ll get to celebrate the start of the new week with some extra cash money in her pocket.

If you didn’t have luck this round, not to worry! Subscribe to The Snack Magazine here (subscription is valued at $129 per year) and keep an eye out for future contest announcements on ANUK for another chance at winning our cash prize.

October 2019 Snack Magazine-Volume 44

Remember that contest rules require submissions include a person pointing out the logo on the cover of The Snack Magazine, and the countdown only begins once we announce the contest in AndNowUKnow’s newsletter.

Congratulations to our October winners! We’ll be back in November for another round—this time much less frightening! See you soon, my favorite produce turkeys!

The Snack Magazine

CINCINNATI, OH - Oftentimes in the retail sector, strong branding has the power to cement itself in the minds of consumers, raking in foot traffic that ultimately leads to increased profits. And with top competitors like Walmart and Whole Foods, this tactic is proving to be more complex for traditional grocers like Kroger.

Earlier this week, a company memo was released to Business Insider, stating that Kroger’s former approaches to branding are falling short. The memo also stated that more news on the matter will be released next week, creating quite a stir across the industry.

"It's been long proven that strong brands drive business," the memo stated, according to Business Insider. "But today, customers don't know what to make of the Kroger brand. We're trying to be everything to everyone—saying too many things in a fragmented way. And it shows. We're a Fortune #17 company that doesn't break the top 100 in brand value ranking."

As competitors are experimenting with new discount and online formats, it appears that Kroger plans to switch up its strategies as well. In the memo, the company claimed to be losing out to its competitors because of these new initiatives. So, the question on everyone’s mind seems to be: How does Kroger plan to refocus its branding efforts?

"Core equities that drive strong grocery brands, including quality, freshness, making life easier, and saving money, are now what our competitors are known for," the memo stated.

The Business Insider article mentioned that Kroger has taken a firm stance, stating that “fresh shouldn't just be for some, it should be for all." With its new brand, the company hopes to "drive repeat trips and very firmly solidify [its] leadership position in the industry," the memo stated.

While this still lies in the realm of rumor, the official rebranding announcement will be released on November 6, according to the memo, so stay tuned in to ANUK.

Kroger

SAN DIEGO, CA - On Friday, October 25, border officers came across a suspicious shipment of produce at the Otay Mesa port of entry. Inside the tractor, officers found over 500 pounds of marijuana hidden inside boxes of produce.

According to Fox 5, officers were alerted when a drug-sniffing pooch smelt the paraphernalia during the secondary inspection, and then located 100 large packages of marijuana. The culprits tried sneaking the packages from Mexico by wrapping them in paper printed to look like jalapeños, then snuggled under real peppers.

In total, 527 pounds of marijuana was seized, estimating a street value of about $211,000, according the Customs and Border Protection. This just adds to a series of narcotics seized over the weekend, totaling 590 pounds of methamphetamine, 18 pounds of cocaine, 5 pounds of heroin, and 617 pounds of marijuana.

We at ANUK would like to thank the CBP for their service in helping keep our streets, and our produce, safe.

SACRAMENTO, CA - Wait, wait, wait! Before you pack away your Halloween costume and swap the jack-o-lanterns for faceless pumpkins in the name of November, the ANUK team has one last horror-filled activity for the produce industry!

Our ANUK apple logo is missing! It was last seen on the cover of the September issue of The Snack Magazine. Now, we need a few expert super sleuths to track it down on the cover of the October issue, or we’re worried we will never see it again. Cue the ominous organ music and bolts of lightning!

If you’ve always believed yourself to be worthy of riding in the Mystery Machine with Fred, Velma, Daphne, Shaggy, and Scooby Doo himself, then we’re challenging you to find the logo in what has come to be known around The Snack Magazine office as the hardest Find the Apple logo round yet. Cue the track of villainous laughing!

This round, you’ll need your handy dandy magnifying glass and a copy of the October issue of The Snack Magazine featuring our favorite bodyless heads. If you haven’t received a hard copy of our October issue click here for the digital cover. Then, to truly prove to us that you’ve found our beloved logo, we need you to snap a pic of your own bodyless head with a dismembered finger pointing to the logo. I repeat:

• Your FOUND the Apple Logo photo must include your face
• And your finger must be pointing to the AndNowUKnow apple logo

If your photo checks off the above boxes, email it to [email protected] to join the running for the $100 cash prize!

Every round, we choose two winners, one from the buy-side and one from the supply-side. If your photo lands in our inbox ahead of everyone else’s, you could join the winners circle with some of the quickest produce people, like:

• David Liesenfelt of Fresh Concepts (reigning supply-side champ)
• Kelly Mejia-Cruz of Denny's (reigning buy-side champ)
• Monina Knox of Sobeys
• Chris Olsen of Gold Coast Packing
• Kimberly Chan of 99 Cents Only
• Danny Ortiz of Sysco
• Brandi McGuire-Sisco of Topco Associates
• Mike Mendez of NatureFresh™ Farms

Interested in receiving a copy of The Snack to give you a leg up in future challenges? Subscriptions are valued at $129 per year, click here to subscribe.

Best of luck to all who dare to play!

The Snack Magazine

BAKERSFIELD, CA - The sweet potato is the mightiest of all holiday spuds—apologies for my overt bias. But, I understand why consumers go crazy for these orange tubers and why retailers are going to want to stock up before the big holiday push. In order to navigate these busy times, I turned to Bob Haarhues, Country Sweet’s Director of Sales and Marketing, to learn about the state of the sweet potato market—and what it means for the holiday season.

“The sweet potato demand is strong as we head into Thanksgiving, and the market is tightening up fast,” Bob explained to me. “Coming off of last year’s smaller national crop, we all had to start early in July and August. Due to that, we’re all still closely watching operations to maintain year-round supplies.”

About 70 percent of the harvest, which includes Garnets and organic and conventional Covingtons, is currently complete, Bob remarked. The total harvest is estimated to be complete around November 19.

“Quality remains excellent out of Bakersfield—this area is perfect for growing sweet potatoes, with our warm and dry conditions through late October,” he said. “The team at Country Sweet Produce and Valpredo Farms work on this crop just about every day of the year—and we love what we do. This harvest has been our best yet, because every year we ramp up and do more to expand our capabilities in sweet potatoes.”

As Country Sweet continues to be a valuable partner to retailers, I asked Bob what he would like buyers to know most about the current state of the market.

“We would like buyers to consider new pack styles, as well as value-added options, to focus on premium packs, organic, and convenience options in the category. This adds value while also easing the burden on bulk potatoes,” Bob shared.

To keep up with how the market is shifting across a variety of categories, keep reading AndNowUKnow.

Country Sweet Produce

IRVINE, CA - President Tom Bellamore of the California Avocado Commission (CAC) has recently announced the promotion of seven-year CAC vet, Monica Arnett to the role of Vice President of Finance and Administation. The freshly-promoted team member will be overseeing the management of finance, administration, human resources, and information technology.

“For me, working with the California Avocado Commission is a blend of day-to-day essentials and high-level strategic thinking; every day is an adventure,” said Arnett. “It’s a unique business because to support the growers CAC needs to put as much funding as possible in support of California avocados, while maintaining reserves to carry through lean years due to crop and pricing variability.”

Arnett joined CAC in 2012 as Finance and Accounting Manager, before being promoted to Director of Finance in 2016. She kicked off her career in public accounting as an audit associate for KPMG, and then turned her sights to the health care industry, commercial and real estate assets, and property management with firms such as LBA Realty and the Koll Company. In 2009, Arnett earned her CPA. Though her career took her to Texas for a time, as a California native, she yearned to return home. So, when a position with CAC became available, it was a perfect fit.

“In her previous roles with CAC, Monica has demonstrated continual growth and mastery of the unique skills needed to spearhead the finances and administration of the organization,” Bellamore commented in a press release. “Market conditions in the avocado industry can have big impacts on the commission’s funding and the California avocado growers’ needs for marketing and other support. Monica is right on top of CAC’s finances and forecasts, which helps us be nimble and responsive while acting responsibly with grower funds.”

Arnett spends her time volunteering with the Big Brothers/Big Sisters of America and running. She has completed the Los Angeles Marathon a whopping three times and has participated in several other full and half marathons throughout the State. Arnett lives in San Clemente, California, with her husband and daughter.

Congratulations to Monica on her exciting new role!

California Avocado Commission