CALIFORNIA - Cardenas Markets is solidifying its place in the West Coast market with new store locations that are taking it even more westward in the Golden State. News source PE reported that the fixture of the Inland Empire grocery scene is opening its first store west of Pomona, California, in Whittier, in addition to bolstering its footprint in the counties of Los Angeles and Orange.

“This is the first of many more to come,” Marco Robles, Public Affairs Director, disclosed to the news source. “We certainly see the opportunities there, with the demographics of the coastal areas. It is obviously very much a part of our outreach.”

Robles also noted that Cardenas Markets has been working to put four new stores on the map every year. This year, that included locations in Victorville, Concord, Tucson (its first store in Arizona), and Las Vegas, and in 2020, a store in Montclair.

On top of simply expanding, Cardenas Markets has also revamped its stores to include trendy amenities like coffee bars and fast-casual restaurants. Will the new Whittier store—which will be housed in a former 34,642-square-foot Stater Bros location and employ around 120 people—include such exciting features? And what other markets is Cardenas Markets considering ripe for the retail taking? AndNowUKnow will continue to report.

Cardenas Markets

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.

THE WEST TO WARM UP THIS WEEKEND

A ridge of high pressure will bring above average temperatures to California growing regions this weekend.

Starting tomorrow, temperatures will rise by 15 to 20°—above where temperatures were most of this week. Oxnard, California, will have a high temperature of 80° tomorrow, 82° on Sunday, and 77° on Monday. Salinas will see maximum temperatures this weekend of 71°, 75°, and 75°. Santa Maria will have highs of 80°, 78°, and 80°.

Look for a possible uptick in the supply of strawberries this weekend and early next week. Lettuces from this region are on the way out.

Desert regions of Coachella will also see warmer temperatures. Coachella will see maximum temperatures of 90° Saturday through Monday. Possibly look for supplies of bell peppers to increase over the weekend into early next week.

Beware as the warmer temperatures will peter out by Tuesday as a storm front comes through California, bringing cooler temperatures and a chance of rain on Tuesday and Wednesday through the state. High temperatures along the coast will drop back into the 60°s and minimum temperatures will go back into the low to mid-40°s. The desert region's maximum temperatures will drop from the 90°s down to the mid-70°s for the remainder of the week.

SOUTHERN GEORGIA SAW FREEZING TEMPERATURES THIS WEEK

The freezing temperatures we had anticipated for the southern Georgia and the panhandle of Florida materialized as expected. The coldest temperatures were in the region of southwestern Georgia and the panhandle of Florida, where the minimum temperature on Tuesday dipped into the 20°s and was in the mid-30°s on Wednesday. Look for serious damage to any remaining fall crops from these regions.

As we get closer to the coast in southeastern Georgia and the eastern coast of Florida, the temperatures were not as harsh, with minimum temperatures staying mostly in the low 40°s with an occasional 39° in isolated areas.

Further south, into the Orlando and Lakeland area, which is a major region for winter strawberries, there were no issues of cold temperatures. This region is just scratching the plants, but volume should begin to pickup in the next couple of weeks.

TEXAS GRAPEFRUIT RECEIVED A BLAST OF COLD AIR THIS WEEK

The same cold front that blasted the eastern half of the country even made its way as far south as the Rio Grande Valley of McAllen, Texas, this week. This region of Texas is a big shipper of red grapefruit this time of year. This is some of the best grapefruit in the country.

Temperatures literally dropped 40° overnight from a high of 87° on Monday to a high of only 44° on Tuesday. The minimum temperatures also dropped from 55° on Monday to 36° on Tuesday. The cold temperatures remained Wednesday and yesterday, but by today, the maximum temperature will be 64° and 74° on Sunday with minimum temperatures back into the mid-50°s.

Don’t expect this cold weather to have any negative effects on the grapefruit.

HURRICANE CENTRAL

A very late season tropical depression has formed in the Pacific off the southern tip of Baja California. The storm is heading in a northernly direction and is forecast to make its way to the Cabo San Lucas region of Baja California sometime Sunday. This storm has sustained winds of 35 mph. It is not known at this time how much rain the storm will bring.

There is no activity in the Atlantic Ocean currently.

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

Weathermelon

PARAMUS, NJ - Can you tell me how to get to Sesame Street? No? That’s fine—I’ve got a feeling that Classic Harvest’s most recent launch will get me there. In celebration of Sesame Street’s 50^th anniversary, the company released limited-edition eat brighter!™ mandarins that feature the frenzied-but-cuddly Cookie Monster character. Leading the charge with great-tasting mandarins from Peru and Chile, Classic Harvest is now shipping its Sesame Street-themed fare from southern New Jersey.

“We ship eat brighter! Cookie Monster mandarins year-round. The anniversary packaging is a fun way to wrap up Classic Harvest’s record summer of shipping mandarins,” said Jennifer Westerhoff, Executive Vice President. “This summer, we increased volumes exponentially with top-quality fruit from Peru and Chile, and we’re now finishing the season with the best eating fruit all year, so we are ready to party! Cookie Monster is featured twelve months a year on our mandarins, but 50^th Anniversary ‘party mode’ Cookie Monster is available for just a short time!”

The convenient Sesame Street 50^th Anniversary bag features attention-grabbing, high-quality graphics starring Cookie Monster-themed eat brighter!™ mandarins. The eat brighter! initiative is a collaboration among Produce Marketing Association, Sesame Workshop, and the Partnership for a Healthier America that leverages the strength and influence of the Sesame Street brand to drive fresh produce consumption for kids ages 2-5 and their families. According to a press release, the eat brighter! branding in produce departments provides a positive, healthy example for kids to model in a way that’s fun and exciting.

“For 50 years, Sesame Street has appealed not only to children, but also to their parents and caregivers,” said Linda Cunningham, President. “Our eat brighter! mandarins are available twelve months a year, but the anniversary bags are a limited edition featuring the best eating fruit of the season.”

Place your order of Classic Harvest eat brighter! mandarins in the limited-edition Sesame Street 50^th Anniversary packaging featuring Cooking Monster by contacting the Classic Harvest Sales Team. Classic Harvest also offers Cara Cara oranges, navels, lemons, and a complete line of specialty citrus, all perfect for the year-round citrus assortment.

For more exciting product launches across the industry, keep reading ANUK.

Classic Harvest

BENTONVILLE, AR - Grocery retail vet Kathryn McLay is moving up through the ranks of Walmart. This week, the retail behemoth named McLay its new Executive Vice President and Chief Executive Officer of its Sam’s Club division, effective November 15, 2019.

“I’m excited to share Kathryn McLay will become the President and CEO of Sam’s Club,” announced Doug McMillon, President and CEO of Walmart, in a press release. “Kath has a track record of success in every role she has taken on. Her ability to deliver results today, develop a vision for the future, and lead the change necessary to achieve it is compelling. She is curious and courageous. Kath builds trust and is a servant leader. She understands the details of retail given her audit, supply chain, and operational experience.”

McLay first began her retail career in 1992, after finishing her business degree and her postgraduate studies in psychology at the University of Technology in Sydney, Australia. She then spent the next seven years in the external and internal audit sector, before making the jump to retail and joining Woolworths. At Woolworths, she held a number of roles in retail and supply chain, including the General Manager for Cost, Northern Logistics Operations Manager for Warehousing and Transportation, and General Manager of Replenishment.

In 2015, McLay joined Walmart's team as the Vice President of U.S. Finance and Strategy, leading the Legacy strategy. She then took on the role of Senior Vice President of Supply Chain, before being promoted to her most recent position as the Executive Vice President of Neighborhood Markets—where she led the growth and overall operations of nearly 700 stores across the U.S.

McLay succeeds John Furner, who was promoted to President and CEO of Walmart U.S. in October.

“John Furner and the Sam’s Club team have strengthened our foundation and built momentum. Kath will help build on that and take it to the next level. We look forward to seeing her contributions to this part of our business,” added McMillon.

Congratulations to Kathryn McLay on her latest promotion!

Sam's Club Walmart

SALINAS, CA - Salad bars have taken the industry by storm as of late, with everyone from Tour de Fresh to Whole Foods Market using them as a tool to bring fresh produce to underserved communities. The Grower-Shipper Association Foundation (GSAF) has also honed in on the initiative, teaming up with district representatives and local produce companies to announce the donation and placement of two new salad bars at Scotts Valley High School and San Benito High School.

“We are proud of all industry members who are helping ensure children in the surrounding area will be able to choose fresh, local produce everyday as part of their school lunch,” said Lorri Koster, President of GSAF. “The fields where we grow vegetables that feed that world are just a short distance from these schools, and it just makes sense that students should be able to easily access the variety of produce that our counties are known for.”

According to a press release, the donations are part of the GSAF More Produce in Schools program, which matches local donors with local schools that request a salad bar in Monterey, Santa Cruz, and San Benito Counties. The GSAF partners with Central Coast school foodservice directors and grower-shippers to make fresh, local produce more readily accessible to area students through the salad bar program. In the past five years, salad bar donations have been made possible by the generous contributions from Taylor Farms, Church Brothers Farms, Tanimura & Antle, Ocean Mist Farms, Braga Fresh Family Farms, Sabor Farms, Top Flavor Farms, and Ippolito International.

“We appreciate the GSAF for its continued support of school salad bars, a cause that’s a win-win for our industry and our children,” said Andrew Marshall, Director of Foodservice and Foundation Partnerships, United Fresh Start Foundation. “We look forward to exploring additional opportunities for collaboration in the years ahead, especially as we plan to engage more California school nutrition leaders to attend the United Fresh Conventions that will take place in San Diego in 2020 and Los Angeles in 2021.”

Supporting research shows that incorporating salad bars into school lunches increases children’s consumption of fresh fruits and vegetables. According to the Pew Charitable Trusts, salad bars are one of the most effective school-based intervention strategies to achieve this goal. When offered healthy food choices in a salad bar, children respond by trying new items, incorporating greater variety into their diets, and increasing daily intake of fruits and vegetables. Salad bars also help schools comply with the National School Lunch Program’s recently updated nutrition standards, which require offering a colorful variety of vegetable options each week.

The GSAF coordinated the donations with the United Fresh Start Foundation, a founding partner of the national Salad Bars to Schools initiative, which works with the produce industry to bring salad bars to schools across the country. The Salad Bars to Schools initiative has created a national movement to encourage more schools to implement salad bars and has helped facilitate the donation of salad bars to over 5,600 schools, benefitting 3 million children in all 50 states.

We at AndNowUKnow extend an enormous thank you to organizations like the Grower-Shipper Association Foundation for bringing fresh to the forefront for younger generations. For more inspiring news like this, stick with us.

Grower-Shipper Association Foundation

OXNARD, CA - Growers are doing the land shuffle in central California this month, migrating from one field to another in preparation for the next harvest. Salinas and Oxnard, California, are two of the big territories involved in this transition, and Duda Farm Fresh Foods is utilizing both for its celery harvests. The company is currently transitioning from Salinas to Oxnard, so I spoke with Rick Alcocer, Senior Vice President of Fresh Sales, who reported that quality is looking good ahead of the holidays.

“The supply of celery is in transition and we are in the midst of the Thanksgiving demand, which will be closely followed by Christmas, holiday parties, endless weekends of college football bowls, and culminate with the Super Bowl,” said Rick. “Most growers plant in anticipation of the increased demand during this unique time of year, so we anticipate adequate supplies, unless Mother Nature has other plans.”

In addition to this anticipation, Rick said that warm and mild months leading into the Oxnard season have brought about a solid crop. That being said, Duda is confident that it will be well-positioned in the celery department this year.

“The week of November 11 and November 18 should be the heaviest for the Thanksgiving demand, but the gap between Thanksgiving and Christmas is shorter this year, so we do not expect much of a break in demand after Thanksgiving through Christmas,” Rick added. “Last year, we saw prices take off after Thanksgiving into the early spring and peaked at $72 per box due to lighter supplies and the unanticipated demand fueled by juicing. We do not expect anything like that this season.”

With the rise in overall celery consumption last year, fueled by the popularity of juicing, many shippers increased their acreage to meet the demand. According to Rick, that overall increase seems to be between 8-10 percent.

“Like others, we planted additional acreage to meet the overall growth in the celery category. For our fresh-cut operations, we have greatly expanded daily production capacity and matched that with increased acreage of our special proprietary celery varieties,” he remarked.

And while all of this hustle and bustle unfolds in California, the company is looking at another popular growing state for supplies in 2020.

“Our Florida celery season will begin slightly earlier than normal, aiming for the second week of December,” Rick concluded. “This is great news for many of our East Coast customers and we have had excellent growing conditions that should supply a very high-quality crop. The Florida season will run through mid-April.”

That’s all we’ve got on celery for now, folks. To see how growers are ramping up for another successful season, stay tuned to ANUK.

Duda Farm Fresh Foods

LOS ANGELES, CA - Ever since the small-but-speedy grocery warehouse transitioned back into the private sector in June, Smart & Final has fallen quiet on the newswire. We were graced, however, by some exciting news from the company yesterday afternoon. Much to our delight, Smart & Final announced the promotion of Sean Mahony and Matt Reeve to Senior Vice President roles.

“Sean and Matt are two industry veterans with more than a half-century of grocery retail experience between them,” said Dave Hirz, President and CEO. “We are very fortunate to have them on our team. It has been a pleasure for me to work with them both for the past ten years, and to watch them grow in their careers. They are highly intelligent and have similar management styles that include living Smart & Final’s values every day. They’ve both made incredible contributions to Smart & Final over the years, and I’m proud to congratulate them on their much-deserved promotions.”

According to a press release, Mahony began his career at Smart & Final almost 27 years ago as a store associate, working at night while attending college. Since 2015, he has served as Group Vice President of Store Operations, overseeing the company’s operations team for its 255 locations. In addition to earning a Bachelor of Science in Marketing from California State University, Long Beach, he also graduated from the Food Industry Executive Program at Cornell University and the Food Industry Management Program at the University of Southern California. As if he weren’t busy enough, Mahony also serves on the Board for Olive Crest, a non-profit organization dedicated to transforming the lives of at-risk children.

With more than 29 years in the grocery industry, Reeve leads the Sales and Merchandising team responsible for category management and private label. According to the press release, he joined Smart & Final as a Category Manager in 2004. In 2008, he helped transform the company through the launch of its newer, larger format, Smart & Final Extra!, which now accounts for more than 75 percent of the company’s locations. In 2019, Reeve received the Hall of Fame award from the Dairy, Deli, Bakery Association of Southern California and was honored with the Stars & Stripes Good Scout Award by the Boys Scouts of America. He also serves on the Board of Directors for the Western Association of Food Chains.

Congratulations to Sean Mahony and Matt Reeves on these exciting promotions!

Smart & Final

WATSONVILLE, CA - This was a banner year for the annual Tour de Fresh, the four-day cycling event that looks to raise funds for Salad Bars for Schools with the United Fresh Start Foundation. And while we reported a big number from the finish line, the biggest yet, in fact, funds still kept rolling in long after the cyclists did.

Now with every dollar tallied, the sixth annual ride is celebrating more than $180,000 to provide salad bars to schools.

“The Tour de Fresh has truly become a special event in the industry, and it’s incredible to see so many friends come together for an important cause,” said Tom Stenzel, President and CEO of the United Fresh Produce Association. “The idea of rallying-around school salad bars, getting kids access to fresh produce, and helping create excitement in schools and communities for our products, it makes sense on so many levels, and the United Fresh Start Foundation is honored to play our part in moving these efforts forward.”

Through a collaborative effort from riders, friends, family members, and fresh produce industry leaders, the ride surpassed its 2018 total of $149,588 to deliver 51 salad bars to schools in California, Georgia, Michigan, Ohio, and Texas, according to a press release.

“We’re thrilled about our record-breaking donation to the United Fresh Start Foundation,” said Cindy Jewell, Vice President of Marketing for the California Giant Berry Farms. “By providing more students with access to fresh fruits and vegetables during school, we’re shaping healthy eating behavior far beyond school hours and for years to come.”

If there is anything I have learned from the privilege of riding along five of the six Tour de Fresh events, it is how hard it is to understand the experience of this unique industry event without experiencing it. Coming pretty close, however, is a video interviewing key contributors to the tour, as well as sharing footage of this year’s journey down California's legendary Pacific Highway.

To experience the beauty of the ride, and to feel even better about being in our industry, click here.

Tour de Fresh would not be possible without the support of its generous sponsors:

• Americold
• AndNowUKnow
• Arctic Apples
• Atlas Produce
• Basil Seasonal Dining
• C&S Wholesale Grocers
• California Giant Berry Farms
• CHEP
• Church Brothers
• Coosemans
• DMA Solutions
• Earthbound Farms
• EBX Logistics
• Emerson
• Evolution Fresh
• Famous Software
• Fight Like Britt Foundation
• FreshPlaza
• Gold Coast Packing
• Good Foods
• Gusto Handcrafted Pasta & Pizza
• Interfresh
• iTrade Network
• JAZZ Apples
• Jerue Trucking
• Lipman Produce
• Markon
• Misionero
• Mission Produce
• Ocean Mist Farms
• Paramount Export
• PRO*Act
• Procurant
• Produce Marketing Association
• Regal Marketing
• Renaissance Food Group
• Sakata
• Specialty Produce
• SunFed Produce
• Sunkist
• Tat-On Inc.
• Taylor Farms
• Total Quality Logistics (TQL)
• United Fresh Start Foundation
• Western Precooling

To date, the Tour de Fresh has raised more than $930,000 to fund and place more than 265 salad bars in schools across the United States. By providing this access to fresh produce in schools, children are learning to incorporate a greater variety of fruits and vegetables into their diet, creating a healthy eating lifestyle at a young age.

Tour de Fresh

WASHINGTON - Recently, the Equitable Food Initiative released the results of a two-year study undertaken by BSD Consulting to assess the impact of EFI’s workspace development programs. The study found that a variety of positive outcomes resulted for the business when fresh produce farming operations engaged workers and managers in an EFI leadership team and taught them to work collaboratively to comply with standards for labor practices, food safety, and pest management.

“The staff feel more empowered, more engaged in our business, and their voices matter,” Kevin Doran, CEO of Houweling’s Group, said. “This has led to a tremendous amount of improvements that wouldn’t have been obvious to us unless they brought them forward.”

According to the press release, some of the positive outcomes included improving working conditions, developing skills in workers and managers, strengthening management systems, enhancing business performance, and ultimately creating a cultural shift within grower organizations. The report also shows how EFI helps fresh produce suppliers meet and exceed compliance with the Ethical Charter on Responsible Labor Practices as evidenced in the outcome areas defined throughout the report.

One manager interviewed by BSD Consulting noted, “Farmworkers feel more accountable after training and participation in [EFI] leadership teams, as they see the whole perspective of the organization. There is a notion of belonging to something bigger. What we do takes all of us—nobody can do it on their own.”

Another manager stated, “One might erroneously think that a university diploma gives us the pure truth. Those who have the day-to-day detailed knowledge are the farmworkers. The EFI program has helped us reinforce the belief that unleashing their full potential just makes sense.”

Managers and workers across departments and levels cited improvements in communication following the implementation of the EFI model on their operations, which led to greater accountability, efficiency, and continuous improvement. A manager interviewed for the study shared, “[EFI leadership team members] represent workers and help us manage workers’ questions and expectations. Communication flows better, shedding light to issues we were not aware of before.”

Over the course of 2017-2018, the study concluded and procured 19 farm visits, 21 focus groups, 476 interviews, and the analysis of 81 audit reports. The research assessed the impacts of the EFI program based on the theory that if the workforce is properly trained and incentivized to collaborate with management in developing a safe, stable, and dignified working environment, then new value is created for growers and buyers. To date, 59 farming operations in four countries have implemented the EFI model, resulting in safer and healthier working conditions for 34,000 farmworkers. More than $6.5 million has been generated in worker bonuses through the premium paid by participating retailers on certified product.

As working conditions are discussed more, the fresh produce world as a whole can only grow to be a better, sustainable, and productive industry.

Equitable Food Initiative BSD Consulting Houweling's

ROCHESTER, NY - We like to say the retail landscape is changing, but seriously, the landscape is changing—retailers like Walmart and Amazon that historically focused on consumer goods are now cementing a place in the grocery sector. These mega-retailers often work to introduce as many services, policies, and programs as they can in an effort to cast a wide net and secure the highest percentage of consumers—an understandable use of the tools at their disposal. But smaller, more regional grocers are finding that their best recourse for competition lies not in attempting to replicate and keep up with the others, but in playing to their strengths and offering consumers in their regions something special. Wegmans, Publix, and H-E-B are some retailers that experience the kind of regional success that is natural for smaller grocers.

CNN Business reports regional grocers like Wegmans, H-E-B, and Publix are looking for ways to distinguish themselves in a highly-competitive market. These retailers have turned to strategies that provide shoppers with further savings.

Customer service also factors strongly into the equation—smaller retailers focus closely on their employees to train and encourage their workers to run their stores in a way that can provide an exceptional experience. This year, Fortune rated Wegmans as the number one Best Workplaces in Retail, a spot that the grocer has held for some time.

Wegmans and many other regional grocers are privately owned, and can make company-wide decisions without the approval of stockholders and boards of directors. Smaller grocers may also benefit when it comes to expansion as well—a detailed sense of the area can enable strategic and careful plans on where to open new stores. Publix, for example, has significant insight on the trends and needs of its customers, enabling the retailer to think outside the box, recently with plans for an inventive new waterfront store.

There are benefits and drawbacks to every retail format, and while regional grocers do enjoy certain benefits, there are other ways in which larger retailers excel. Each retailer must do what they can to leverage their strengths and focus on what makes them special. As the industry continues to evolve, companies will seek out and try new directions and new ideas to ensure the highest profitability and customer satisfaction they can.

What can the rest of the industry learn from Wegmans, Publix, H-E-B, and other regional grocers? AndNowUKnow will continue to report.

Wegmans Publix H-E-B