WASHINGTON, DC - There was more movement on the Mexican tomato front last week, as the Fresh Produce Association of the Americas (FPAA) went before the International Trade Commission (ITC) to testify. FPAA suggested that at the heart of lost market share is a lack of innovation amongst U.S. tomato producers. According to a press release, Lance Jungmeyer, President of FPAA, testified that Mexican growers who have added technology to meet market conditions should not be penalized or accused of injury in the face of the U.S. industry’s failure to adapt.

“The data shows that, since this saga began in 1996, the petitioners have done little to innovate or move their horticultural interests forward,” Jungmeyer said. “With the continued market share decline of their primarily field-grown gassed green tomato product, the FTE companies have largely hitched their wagons to their competitors in Mexico, investing in fields, packinghouses, and strategic partnerships there in order to remain relevant in the marketplace.”

FPAA was quick to defend the interests of U.S. importing companies after the Florida Tomato Exchange recently asked to have the investigation reopened. If no injury was found, the Tomato Suspension Agreement would be removed and there would be free trade without duties. A determination of injury would mean continuation of the Tomato Suspension Agreement. FPAA maintains that importers are working with Mexican growers to provide the product that the market wants and requires.

“Indeed, far from causing injury, the importation and distribution of Mexican tomatoes is one of the only things keeping FTE marketing companies in the game,” Jungmeyer added.

FPAA surveyed its members, who revealed that nearly 25 percent of the tomatoes they sell go toward FTE-affiliated companies. Over the last few years, FTE-affiliated firms have systematically bought up distribution operations all across the United States and transitioned from tomato farming to tomato marketing.

As the great tomato debate continues to develop, keep a tab open for AndNowUKnow.

Fresh Produce Association of the Americas

CORAL GABLES, FL - Running a marathon is no easy task. The completion of the 26.2-mile journey is usually rewarded with copious amounts of electrolytes, a nice frosty pint, or in the marines' case, bananas. Fyffes joined the Marine Corps Marathon (MCM) for the seventh consecutive year and passed out bananas to the marathoners on October 27. The banana company has fueled runners with over 200,000 bananas over the course of its long-standing partnership with the MCM since 2012 as part of its #FuelWithFyffes campaign.

“Fuel with Fyffes represents a driving force that fuels and motivates runners as they prepare both physically and mentally to complete their 26.2 mile-long race,” said Marion Tabard, Vice President of Marketing for Fyffes in North America. “After crossing the finish line, the runners fuel with Fyffes again and replenish their bodies with the Fyffes bananas that are given out by the Marines.”

The company was also conscientious; Fyffes collected all banana peels for compost, an initiative Fyffes started in 2014. According to a press release, the banana peels and compostable materials collected from the MCM grounds are donated to the Veteran’s Compost program. As in previous years, bright yellow Fyffes composting bins were placed throughout the Finish Line area, creating a sustainable solution to reducing waste at the event. The banana peels are then handled by Arlington County Waste Management and processed into high-quality organic compost that provides critical micronutrients to soil throughout the DC community.

“Over the years, the composting initiative has become one of the largest composting programs at a single event. We are proud of the impact of this continued partnership as it aligns strongly with our core values and on-going commitment to sustainable practices,” continued Tabard.

Due to the efforts and partnership with Fyffes for the composting program, the MCM has been recognized as a gold-certified event, the highest level awarded by the Council for Responsible Sport, for being socially and environmentally responsible as a world-class running event.

“It’s a great partnership that brings social media energy before the event and composting efforts to benefit the environment after the run,” said Marine Corps Marathon Director Rick Nealis.

With programs for sustainability being more recognized in not just the produce industry but everywhere, how will other companies meet expectations? AndNowUKnow will keep you updated.

FyffesMarine Corps Marathon

CINCINNATI, OH - Kroger has been chasing growth by expanding into and testing new sectors. The retailer has been dabbling in foodservice, plant-based meat, and new shopping formats, in an effort to remain competitive and innovative. Now, Kroger has partnered up with the holy trinity of delivery services—UPS, FedEx, and USPS—to test a new program that offers its customers more diverse services when shopping.

Dubbed Kroger Package Services (KPS), the new program allows select Kroger locations to accept and safely store packages from major carriers, UPS, FedEx, and USPS, which customers can then pick up later, according to Business Insider. Through the program, customers will also be able to drop off pre-labeled packages or unboxed items to ship anywhere in the U.S., the news source reports. Customers dropping off unlabeled packages will have access to automated kiosks where they can purchase and print their own shipping labels.

"Kroger Package Services is one of several ongoing tests we have in market to further develop our portfolio of seamless customer experiences," a spokesperson said. "The pilot allows us to test and learn in a retail setting, gaining useful insights from both customers and associates."

The retailer plans to test the KPS program in 220 stores this year, according to internal documents the news source reviewed. Kroger plans to capitalize on the growing grocery delivery sector, and has high hopes that the new program will encourage further shopping.

"When customers enter our doors to take advantage of KPS, there is a high likelihood they will purchase additional items in store," a document stated.

What will be the consumer reaction to the new program? AndNowUKnow will deliver updates.

Kroger

BROOKLYN, NY - What may have started as an affectionate name for loyal grocery followers has turned into an all-out fan following led by the most dedicated customers. You may have heard that “Wegmania” has broken out in the state of New York, as its very first Wegmans location opened up in Brooklyn on Sunday. According to Public Relations Coordinator Valerie Fox, the new Wegmans was met with over 25,000 shoppers staked out front ahead of opening. Despite the rain coming down, some had set-ups similar to that of a football tailgate. So, I just have one question: What would the Wegmaniacs’ mascot look like?

"The Brooklyn store opening was an incredibly exciting day for our family company," Fox said, according to Democrat & Chronicle. "Despite heavy rainfall, hundreds of people lined up around the block before dawn yesterday."

Although we don’t have exact sales figures from the new Wegmans, Fox reported that they broke records, surpassing that of the Alexandria, Virginia, store that opened in 2015. As the doors opened, workers and shoppers alike shuffled through with pure excitement on their faces. At 74,000 square feet, the store usurps the traditional brick and clock tower facade that many Wegmans are known for. Instead, it displays a more modern aesthetic that blends with the Brooklyn Navy Yard.

The new Wegmans stocks over 50,000 products, 2,000 of which are organic. It features 300 varieties of cheese as well as an in-house bakery, fresh fish, an olive bar, and a craft beer selection, as well as prepared foods departments that include sushi, Asian cuisine, pizza, and burgers. The whole facility is topped with a second-level dining area to fulfill any Wegmaniac’s wildest dreams.

Congrats to Wegmans on its exciting new location—and hats off to the Wegmans fanatics who helped it break records! Keep reading us at AndNowUKnow for the industry’s most exciting news.

Wegmans

SACRAMENTO, CA - Raley’s is downsizing its pharmaceutical division, citing challenges in the pharmacy space as the driving factor. As a result, the grocer began shuttering 27 of its Raley’s, Bel Air, and Nob Hill pharmacies on October 26th, with closures to be complete by November 5th. Its remaining 69 locations across California and Nevada will continue to operate.

According to a press release, Raley’s selected the closing locations based on relevance and profitability—a strategic business decision that will position the company for continued long-term growth and ongoing success.

Rather than transfer its prescriptions within its own operations, Raley’s will offload those from the closing pharmacies to that of Walgreens, CVS Pharmacy, and Rite Aid. Impacted patients will receive a notice identifying the specific transfer location and timing.

Impacted pharmacy team members have also been informed, with transition support provided for employees, including pay and benefits for a period of time as well as future employment assistance.

The grocer has disclosed which locations will be closing here.

How will Raley’s long-term growth and ongoing success play out in the grocery retail market? AndNowUKnow will continue to report.

Raley's

CASTROVILLE, CA - I’ve had many successful Friendsgivings and it seems that the trend is catching on among consumers. Even Ocean Mist Farms is getting in on the Friendsgiving action, with the launch of its Friendsgiving Flavor campaign, a fall promotion to elevate the Season & Steam product line. The line includes Sweet Baby Broccoli, artichokes, whole Brussels sprouts, Brussels sprouts shreds, and Brussels sprouts halves.

“Our fall Friendsgiving Flavor campaign will serve both our retail partners and shoppers by providing content that engages, educates, and ultimately drives foot traffic to stores as the holiday season quickly approaches,” said Diana McClean, Senior Director of Marketing. “Because Ocean Mist is committed to being a helpful resource for our shoppers, we created a few new fall recipes and recently launched new instructional videos to help shoppers have the best experience with their Season & Steam purchases. And while supporting in-store sales this holiday season is our number one goal, this campaign also serves to increase our national brand reach and build shopper connections in preparation for future campaigns—particularly our upcoming Coachella artichoke season.”

Shoppers will be delighted to hear about the sweepstakes aspect, titled the Friendsgiving Flavor Giveaway, which will run on Instagram from November 1 through November 22. Those who enter will have a chance to win a $50 Visa gift card and free Season & Steam products. Shoppers can find additional information and instructions on how to enter by following @OceanMistFarms on Instagram, a press release noted.

In addition, Ocean Mist is striving to make holiday entertaining less stressful by showcasing unique fall recipes on its new “Fall Feasting” webpage. Shoppers will find “how-to” videos, blog posts inclusive of cooking tips and tricks, and digital cookbooks.

Throughout the campaign, Ocean Mist Farms will partner with Running to the Kitchen, a social media influencer, and will utilize Google advertising and targeted social media advertising to encourage shoppers to purchase Season & Steam items at their local grocery store with the help of the new Destini locator tool found on www.oceanmist.com.

Here's hoping a Friendsgiving is in sight for all those hungry shoppers!

Ocean Mist® Farms

WASHINGTON - As the labor shortage in the produce industry increases, growers and shippers are looking to recruiters, labor contractors, and H-2A guest workers for assistance. Due to these developments, Equitable Food Initiative has put together a free resource to help the fresh produce industry take into account how to best come to fair terms with workers. In doing so, EFI hopes to reduce labor recruitment blind spots that could put growers at risk.

So, how is EFI helping growers and shippers avoid these common hurdles and situations when recruiting workers? The company has created a Responsible Recruitment Scorecard, two detailed questionnaires that will provide a rating indicator along with key areas growers can address to drive continuous improvement across their recruitment processes. One questionnaire is designed to help identify risks that are often associated with the foreign recruitment of workers, and the second is used to determine risks that can be present when working with farm labor contractors.

“These scorecards allow growers to have visibility into what are often invisible risks they take on by using third-party labor providers,” stated Kenton Harmer, Director of Certification and Impact. “As a self-assessment tool, growers use the results internally to determine which recruiters and farm labor contractors are most aligned with the ethos of their business and to build partnerships that further reduce their vulnerabilities around forced labor.”

According to the press release, the number of workers admitted to the United States via the H-2A program rose to nearly 243,000 in 2018, a whopping 46 percent increase since 2016. Because labor recruiters play an important role in identifying a potential workforce for many grower operations, workers are vulnerable to exploitation from corrupt recruiters who are involved in labor trafficking and charge illegal recruitment fees. The produce industry’s 2018 release of the Ethical Charter on Responsible Labor Practices created an increased demand for social responsibility, calling for every farmworker to be treated with dignity and respect, and stated that employers must not tolerate modern slavery.

“Responsible recruitment is the right thing to do, and we’ve found that it can also drive business performance,” said Harmer. “Not only does it reduce the legal and commercial risks for the grower, but it can also create an environment for meaningful worker collaboration which results in better quality products and increased company efficiencies.”

The resource is provided at no cost at www.equitablefood.org/scorecard in both English and Spanish. For more improvements and updates in the produce world, keep with us at ANUK.

Equitable Food Initiative

ANAHEIM, CA - PMA Fresh Summit has wrapped and my head is still spinning from all the innovations I saw on the show floor. It’s not easy for us as an industry to outdo ourselves, but we somehow manage to do exactly that every year! Keeping this theme in mind was Sunkist Growers, who took to the show with a citrus vigor. I had the pleasure to chat with Julie DeWolf, Director of Marketing, to find out what all the company had to offer.

“We have a brand-new and complete portfolio of organic citrus available, along with an entirely new line of packaging,” Julie began, and I could already tell that I was about to be overwhelmed by newness in the best way possible. “We’re also looking forward to Lunar New Year this year. Every year, we create a custom set of packaging, limited-edition. This year, it’s the Year of the Rat, so we have a beautiful 10 lb box and a supporting display bin.”

As the grower continues to increase its presence in the organic space, it also is upping its game on the packaging front. If the Year of the Rat design wasn’t enough to knock your socks off, perhaps the high-graphic blood orange carton will do the trick.

“Outside of that, we have a whole portfolio of customizable materials and programs to help increase selling space when there’s not enough room on the floor. Our display bins can take care of that in a small footprint. So, with all of these new materials, the goal is for retailers to be able to engage with consumers and educate them on the taste, quality, and versatility of Sunkist citrus,” Julie shared.

To hear more about it from the marketing maven herself, watch our exclusive video above! And don’t forget to stay tuned to AndNowUKnow for all of the post-Fresh Summit content.

Sunkist Growers

CANADA - It’s no secret that Costco is loved by many. Membership is at an all-time high, and the crowd at the first grand opening in China has proven that Costco can hold its own in international waters. However, Canadians seem to be loving those Costco samples just as much as we do down here in the States. Costco has gained a massive following in Canada, nudging out Walmart as the second biggest retailer in the country.

Kantar, a global data, insights, and consulting company, recently announced some key insights on the retailer, which now employs more than 10,000 employees in the country and reports consistently strong sales numbers.

"Costco is really a competitor. And what we forecast is that it is going to widen its gap to Walmart in terms of revenue. It’s going to dwarf Walmart over the next five years as well," said Amar Singh, Senior Analyst on Retail and E-Commerce for Canada with Kantar.

Narcity claims that membership costs and bulk purchases played a big role in the retailer surpassing Walmart in Canada. Other services and products like houseware, travel, medicine, and gas have made Costco an all-around retailer that meets most of consumers' needs, especially when food comes into play.

"One of the reasons it has been successful is its grocery expansion. It’s more becoming a grocery store now with a very strong grocery presence. And it still delivers on its true value hunt experience, which Canadians love," Singh claimed.

Not to mention its strategic expansion plans. When it first moved into the country, Costco targeted urban centers and suburbia to better monopoloize on the already available concentration of consumers.

“They have very strong accessibility amongst Canadians and on a per capita basis the penetration of Costco in Canada is greater than the U.S. Canada over-indexes when it comes to penetration,” said Singh. “On a per capita basis, Costco has a higher penetration in Canada versus the U.S. and that’s just because Costco has been very strategic of where it opened its clubs and with that it's accessible to most Canadians.”

According to Retail Insider, Costco not only beat out Walmart, but Sobeys and Metro to claim the second spot. But who won out on the first?

“Costco has very strong penetration as much, if not higher, than Walmart in Canada, but Loblaws as we all know is the biggest retailer across all channels and with all the portfolio and presence that it has in Canada,” reported Singh.

With that in mind, will Costco be planning a more aggressive approach into the Canadian market? Keep reading ANUK as we report the latest in retail.

Costco

CALIFORNIA - California’s Governor, Gavin Newsom, declared a state of emergency yesterday, after the massive Kincade fire—located in Sonoma County—ravaged through more than 66,000 acres and numerous other fires began cropping up along the state.

According to a report from CBS News, Cal Fire announced that the fire was only 5 percent contained as of this morning. It has destroyed 96 structures and 80,000 are currently threatened, state officials related to the news source. The National Weather Service noted that the wind is expected to shift on Monday, which will offer firefighters a 24-hour window of semi-favorable conditions to help beat back the flames in aerial strikes. However, another wind event is expected Tuesday evening, and there is no rain expected for the end of the month.

Currently, over 200,000 people have been evacuated from their homes.

In response to both the fires and the dry wind events, PG&E began cutting power for more than 2 million homes and businesses on Saturday. 1.3 million of those were in the Bay Area. There is no word yet on when the power will return.

AndNowUKnow will continue to keep its eyes on the latest developments and report on affected growing regions, evacations, and more.

California Department of Forestry & Fire Protection