WASHINGTON, DC – Putting the spotlight on innovation, Taylor Farms CEO Bruce Taylor will deliver the keynote at this year’s United FreshTEC Conference.  

"The rate of technological change is accelerating across all segments of the fruit and vegetable supply chain," Bruce shared with me. "The United FreshTEC conference is a terrific opportunity to learn and lead."

The conference, held June 13 through 15 at McCormick Place in Chicago, will gather hundreds of produce and fresh foods operations executives looking to advance their businesses through technology. Conference attendees will participate in expert panel discussions of pre- and post-harvest automation, food safety, and controlled growing environments—as well as the FreshTEC University Showcase, where top universities from across the country will share their cutting-edge data, concepts, and exhibit their innovative projects in ag technology.

On Wednesday and Thursday, June 14-15, the expo will bring exhibitors and attendees together within several destinations designed to enhance education and networking on the trade show floor. Attendees can use the TEC X-Change at the expo’s entrance to meet with colleagues, connect, and share perspectives on key issues and common interests.

The expo’s FutureTEC Zone will feature a concentrated display area for start-up companies bringing new technologies to the fresh foods industry. Western Growers will feature leading companies from its Center for Innovation & Technology in Salinas—one of the most important incubators for start-ups within the produce industry.

As the food industry works to comply with new regulations under the Food Safety Modernization Act (FSMA), Food Safety Pavilion will be more important than ever before, and this year’s pavilion will offer more exhibitors, research presentations, and poster sessions than ever before.  

The Fresh TEC Learning Center will feature 45-minute educational sessions on topics like sanitary equipment design, transportation, cybersecurity, packaging, biotechnology, and more. In addition, attendees will catch a glimpse into the future with TEC Talks—5-minute sessions featuring various start-up companies from the FutureTEC Zone.

Registration for the United FreshTEC Expo & Conference is now open. Attendees will have access to co-located shows including the United FreshMKT Expo, Global Cold Chain Expo, and the International Floriculture Expo. Additionally, FreshTEC attendees will be able to network and catch up during the official 2017 Opening Party kick-off event at the Shedd Aquarium, this year co-hosted with the Global Cold Chain Expo.

United Fresh encourages prospective attendees to choose the All Access Package to maximize value and access to the various events. Early bird rates are available for those who register from now through April 25, 2017.

For more on this and other important events in the produce industry, check in with AndNowUKnow.

United Fresh Produce Association

MINNEAPOLIS, MN – The buy-side sector may be seeing some significant changes coming to Target stores nationwide. The company has unveiled several new strategies to turn its sales around after releasing its Q4 and year-end report for 2016 with lower numbers than expected, causing its shares to fall 13 percent earlier this morning as Reuters reported.

“Our fourth quarter results reflect the impact of rapidly-changing consumer behavior, which drove very strong digital growth but unexpected softness in our stores,” said Brian Cornell, Chairman and CEO of Target, in a press release.

Target’s comparable sales for its fourth quarter decreased 1.5 percent, which was lower than expected by analysts. Target also reported a 43 percent decrease to its profits in comparison to last year. The company’s reported earnings per share was also lower than analyst projections at $1.45. 

In order to combat these reportings, Target is undergoing a long-term overhaul of strategy to regain upward momentum. In the face of what the company pinpointed as decreasing foot traffic and in-store sales, Target leadership plans to remodel a wide number of its stores, and embrace the convenience model in order to bring a push to grocery and its sales.

TheStreet outlined that Target will remodel 100 stores in 2017, and then another 250 stores next year. By 2019, the retailer expects that it will have 600 store remodels under way. Cornell told investors that the company will focus on updating locations that haven’t been in years.

“We’re investing to win share—not surrendering,” Cornell told investors, according to the StarTribune. “There will be winners and there will be losers in this new era in retail. This plan is all about coming out on top.” 

Other highlights from Target’s financial report included: 

• Fourth quarter comparable digital channel sales increased 34 percent
• Fourth quarter GAAP EPS from continuing operations of $1.46 and Adjusted EPS of $1.45
• Fourth quarter EBITDA margin rates were 9.5 percent and 6.5 percent
• Fourth quarter gross margin rate was 26.9 percent
• Full-year year GAAP EPS from continuing operations declined 12.7 percent to $4.58
• Full-year adjusted EPS increased 6.7 percent to $5.01 

Target expects low-to-mid single digit decline in comparable sales over the first quarter of 2017, and an adjusted EPS of $0.80-1.00. For the full-year 2017, Target expects a low-single digit decline in comparable sales, and a GAAP EPS and Adjusted EPS of $3.80 to $4.20. 

For Target’s complete financial report, click here. Is Target's financial stature indicative of where commerce is heading, or will the new focus turn things around?

As Target enacts its plan and moves into its first financial quarter for 2017, stick with AndNowUKnow for updates on the retailer's strategy.

Target

WASHINGTON, DC – The U.S. Department of Agriculture (USDA) has filed an administrative action under the Perishable Agricultural Commodities Act (PACA) against Organic Avenue LLC.

According to a recent USDA press release, the company, operating out of New York, allegedly failed to make full payment to four produce sellers in the amount of $249,272 from August 2015 through September 2015.

Organic Avenue LLC will have an opportunity to request a hearing. Should USDA find that the company committed repeated and flagrant violations, it would be barred from the produce industry for two years. Furthermore, its principals could not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.

In the past three years, USDA resolved approximately 3,500 claims PACA claims involving more than $58 million. Its experts also assisted more than 8,000 callers with issues valued at approximately $140 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

USDA's Agricultural Marketing Service

CONNECTICUT - “I want people to say ‘this is simple; I can do this; I don’t even have to boil water!’” Cuisinicity Founder Catherine Katz tells me. “My goal and the goals of [produce professionals] are one and the same,” Catherine explains, “engaging people in loving food that is as tasty and luscious as it is nutritious; it’s about the unencumbered pleasure of good food that one will love and that will love them back.”

For Catherine, delivering a keynote address and designing a menu at Viva Fresh 2017 is the latest stretch of a lifelong journey. From the ivory tower to the kitchen, an upbringing spread across continents and a career in neuroscience, Catherine has put together a unique website and a food philosophy that marries simple, nutritious ingredients with gourmet flavors.

“Cuisinicity comes from the terms ‘cuisine,’ from French, and simplicity and authenticity,” Catherine explains. “The website itself is only just over two years old, but the whole concept has been more than 25 years in the making. It was born when I fell in love with my husband.”

Catherine, a “French foodie,” and her husband didn’t exactly agree on food when the two met at Yale University. For Dr. David Katz, a preventive medicine resident and soon-to-be world-renowned nutrition expert, food had to be good for health (whether or not it was good!) while, for Catherine, a postdoc in neuroscience, food was about pleasure and joy—a joy she acquired growing up in southern France.

“I think that’s when this whole journey of nutritious and delicious began.”

As the couple spent the next several years working as scientists and raising a family (they have five children), Catherine applied a scientific rigor to the meals the Katz clan enjoyed every day. By testing and substituting healthy ingredients into traditional recipes, Catherine created a repertoire of nutritious food—without sacrificing the luxurious flavors and textures of Mediterranean French cuisine.

Eventually, David asked Catherine to collaborate on a book: Dr. David Katz’s Flavor-Full Diet. Though Catherine was initially skeptical that her recipes, however wholesome the ingredients, would meet David’s exacting nutritional standards, years of experimentation had honed her craft. One by one, the recipes she submitted to nutritional analysis proved to be extraordinarily healthy, and Catherine was inspired to share her story and cuisine.

Now an accomplished advocate and chef with collaborations and guest appearances in kitchens around the country, Catherine will be presenting alongside her husband David at Viva Fresh 2017, and the husband-wife dynamic duo plans to offer a menu showcasing simple, authentic, fresh ingredients.

With offerings like a nutritious take on the galette, a Mediterranean couscous salad, and Catherine’s decadent-yet-nutritious Dark Chocolate Lava Cake, convention-goers will have a unique opportunity to sample Catherine’s Cuisinicity hits and witness nutritional theory and practice come together and come to life.

Viva Fresh 2017’s Keynote Luncheon will be held on Friday, April 21 starting at 11:30 a.m.

Stay tuned to AndNowUKnow for more on all things produce.

Cuisinicity Viva Fresh Produce Expo Texas International Produce Association FullTilt Marketing

SALINAS, CA - Once again, the Organic Produce Summit (OPS) is bringing an exciting array of retail experience to its Monterey, California show. This July 12-13, OPS will be bringing on Dave Corsi, Vice President Produce and Floral for Wegmans; Heather Shavey, Assistant Vice President, Global Produce for Costco; and Chad Miller, Vice President Produce Procurement for Sprouts, to its Retail Roundtable presentation. The crew will explore insights, opportunities, and challenges facing retailers in the multi-billion dollar organic fresh produce industry.

Dave Corsi, Heather Shavey, and Chad Miller, are each expected to engage OPS attendees with an overview of their respective stores approach to organic fresh produce, as well as the challenges and opportunities in marketing to consumers in the booming organic marketplace. The Roundtable will be moderated by industry maven Tonya Antle, Co-Founder of the Organic Produce Network. 

“We are thrilled to have three of the most influential, prominent and progressive retail leaders in the sales of organics as part of our program,” said Susan Canales, Director of Operations for OPS. “With three different formats covering three geographical spheres, our attendees will gain insightful and useful information on how leading retailers are marketing organic fresh produce to consumers and the opportunities to drive sales into the future."

The Retail Roundtable is one of four featured keynote presentations scheduled for OPS 2017, with other confirmed presentations including an overview of organic fresh produce sales from data company Nielsen, as well as an inside look at America’s first USDA certified organic fast food restaurant chain, The Organic Coup. According to a press release, one additional keynote presentation will be announced in the coming weeks. 

General registration for OPS is now open and can be accessed at www.organicproducesummit.com. OPS 2017 will again feature sold-out retailer/buyer field tours and an opening reception on July 12. July 13 will see a full slate of educational breakout sessions with keynote presentations in the morning. The event concludes with a sold-out exhibitor expo featuring over 100 growers, shippers, and processors of organic fresh produce from across North America.

Registration is limited, so attendees are encouraged to sign up as soon as possible as OPS anticipates another sold-out event. See you all there!

Organic Produce Summit

BURLINGTON, ON - Following a two-decade career in the buy-side of the produce industry, Sean McCauley is joining Ippolito Fruit & Produce Ltd. in the newly created position of Director of Sales. In the role, McCauley will be tasked with maintaining and growing Ippolito Fruit & Produce sales within the Canadian and Eastern US markets. The company says the new position will focus on growing Ippolito’s retail presence, as well as developing and implementing a foodservice market strategy.

“I am very excited to be a part of the Ippolito team,” said McCauley upon his appointment. “They have worked very hard growing their company and building an impressive product line. They have invested in new, innovative technology, which has made them a leader in the packaged salad industry. I look forward to growing Ippolito’s brand presence in the retail and foodservice markets, as well as bringing exciting new products to the market from our new production facility.”

According to a press release, McCauley has spent his past 20 years passionately working in the retail stream of the produce industry. His most recent role saw him spend eight years as Senior Category Manager at Loblaw Companies Inc, and he has been responsible for procurement categories such as packaged salads, value-added items, salad bar items, berries, cherries, pomegranates, and root vegetables. In addition to his retail experience McCauley was the 2009/2010 Chair of the Ontario Produce Marketing Association, where he was an instrumental part of growing the association’s Grower-Retailer Program. 

McCauley will report directly to Steve Dimen, the company’s Co-Chief Operating Officer, who shared, “We are very excited to have Sean join the Ippolito team. Sean’s years of retail experience in both the commodity and value-added produce markets will be a great asset to the Ippolito team.”

Congratulations to Sean McCauley on this exciting new step in his produce career!

Ippolito Fruit & Produce Ltd.

SALISBURY, NC – There’s a host of new possibilities on the horizon for Food Lion, with a new remodel looking to lead the company’s latest strategy. The retailer has announced that 93 stores in the Greensboro, North Carolina market will undergo significant changes throughout the year.

"We're proud to have been a part of the greater Greensboro community since 1968, and are excited to bring our newest format to this market," said Food Lion President Meg Ham. "We look forward to making significant investments in our stores, our customers, our associates, and our communities to offer a new grocery shopping experience. We want to ensure our customers can easily find fresh, quality products to nourish their families at affordable prices every day, delivered with caring, friendly service every time they shop."

This strategic move was undertaken in efforts to make shopping easier and more affordable for Food Lion customers. According to a press release, the company will make a $178 million investment into the remodels.

The remodels will boast a fresh and new layout designed to make stores easier to navigate, boosting the convenience factor of shoppers. Food Lion will also expand the variety of its products in each store to feature more local products, natural and organic selections, and healthier snacks. Greensboro is the fifth market to receive a remodel by the chain.

As part of its “Easy, Fresh and Affordable… You Can Count on Food Lion Every Day!” strategy, the company has already brought some enhancements to stores within the Greensboro region which included product expansions, new registers, price investments, and enhanced service. Food Lion stated that as part of the remodel, the chain will be making additional price investments throughout the year, in addition to investments in associates and their community through Food Lion Feeds.

The stores will be updated and completed on a rolling basis between March and August 2017. A full list of the locations to be updated is available for download here. The company also stated that it will continue remodeling and enhancing its more than 1,000 stores throughout the year, as well as investing in other markets over time.

So far, Food Lion has completed updates to 142 stores in Charlotte, NC, 162 in Raleigh, NC, and 76 stores in the greater Wilmington and Greenville, NC markets.

With retailers continuing to put an extended focus on fresh with their store layouts, AndNowUKnow will have all the latest as new formats unfold.

Food Lion

SANTA PAULA, CA – Extending its prodigious footprint even further throughout the globe, Limoneira Company has just completed the strategic acquisition of Chile-based Pan de Azucar S.A. (PDA). 

"With its favorable climate for citrus, PDA's productive orchards and strong relationship with Rosales was a perfect fit for our international expansion plans. Our acquisition of PDA is consistent with our long-term strategy to expand our agribusiness internationally as a global, year-round supplier of lemons complementing our One World Of Citrus™ strategy,” stated Harold Edwards, President and CEO of Limoneira. “We expect the acquisition to be immediately accretive and will benefit our business by owning more productive acreage and increasing our ownership in Rosales." 

Through this purchase, Limoneira has acquired around 210 acres of lemon and orange orchards located near La Serena, Chile. According to a press release, this purchase has also provided Limoneira with an equity interest in Rosales, S.A., which packs, markets, and sells citrus in the same region as PDA. 

"We are very excited about our expansion in Chile," said Alex Teague, Senior Vice President of Limoneira. "The majority of the orchards we acquired are young and just beginning to enter into its prime production time period. Our management team has a long-standing relationship with PDA, and we are excited they are now part of the Limoneira team. Along with expanding our participation in the growing global lemon business, this enables Limoneira to provide citrus on a year-round basis to our customers around the world and evaluate future potential investment opportunities in Chile's vast, productive agricultural properties."

Limoneira stated that it expects annual production increases from PDA’s orchards, because the majority of the trees are young and will increase yield as they mature. Rosales packs and sells all of PDA’s citrus production, and also partners with Limoneira’s One World of Citrus™ marketing team to sell its produce throughout Chile and the world.

The acquisition was completed on February 24, 2017, through Limoneira’s wholly owned subsidiary Limoneira Chile SpA. Limoneira acquired 90% of outstanding stock for PDA for around $5.8 million in cash. Limoneira will now own 48% of Rosales, and PDA’s 10% stockholder will own the remaining 52%. 

PDA had approximately $450,000 of net income on around $1.9 million in sales for the year ending on December 31, 2016. PDA's operation results will be included in Limoneira’s consolidated results of operations from its acquisition date. 

PDA also had approximately $1.7 million in long term debt, which was assumed in the transaction. The company stated that a holdback of 10% of the purchase proceeds to be paid to the seller were withheld for a six-month period to allow for potential contingencies. PDA's total assets of approximately $5.5 million on the acquisition date includes a 13% equity interest in Rosales in which the Company owns a 35% equity investment, which was acquired in 2014.

La Serena is in a coastal region of Chile, and serves as a major citrus and avocado growing area of the country. 

As Limoneira and other companies look to extend their international reach, count on AndNowUKnow for the breaking news.

Limoneira

BENTONVILLE, AR – In what seems to be an effort to close the price gap between itself and German-based discounter Aldi, Walmart has begun to run new price-comparison testing in 1,200 U.S. stores—potentially spurring a price battle between the company and its rivals.

The company’s price test has been launched across 11 Midwest and Southeastern states—including important markets in Iowa, Illinois, and Florida—and focuses mainly on the stores’ grocery business, according to news source CNBC. Other markets include: Georgia, Indiana, Kansas, Kentucky, Michigan, North Carolina, South Carolina, and Virginia.

Reuters has reported that spot checks of five cities throughout Iowa and Illinois showed Walmart is already working to lower prices in a bid to attract more shoppers.

According to CNBC, Walmart held a series of meetings last week with major suppliers like Procter & Gamble, Unilever, and Conagra Brands, in which the retailer reportedly requested a 15 percent reduction in cost. The news source’s vendor sources reported that Walmart expects suppliers to help the company in its effort to best rivals on head-to-head pricing on 80% of their offerings.

These efforts to combat competitors come at a time when another German-based discounter, Lidl, is set to make its first foray into the U.S. market this summer.

"Wal-Mart is trying to go back to where they were 10 years ago when they were absolutely the low-price leader," an anonymous representative of a large packaged food supplier reportedly told Reuters. "We understand they are willing to give up profits to a large extent in some cases, so they can invest in their own brand."

In the U.S., Aldi is still a small presence, with Lidl set to open its first store this summer. Aldi, with roughly 1,600 U.S. stores, accounts for only about 1.5 percent of the U.S. grocery market—but it is growing at 15 percent a year. Walmart currently controls roughly 22 percent of the market—but is growing at a much more staid rate—two percent this year, according to CNBC.

We previously reported on independent analysts’ take on Walmart price cuts in markets traditionally predominated by Kroger stores.

How is this heated price competition primed to shape the retail landscape in the next few years? AndNowUKnow will keep you up to date with developments as they occur.

Walmart

LOS ANGELES, CA – Viewers in Southern California will be getting a special dose of fresh produce over the next few years, with the issues of the industry now brought to their homes through media. Fusion Marketing President Steven Muro has been named as agricultural specialist for KCET’s Community Advisory Board (CAB).

“When KCET approached me to serve on their advisory board, I was very honored as KCET provides such a wide array of programming covering important issues. I’m happy to utilize my expertise in agriculture to play an integral part of the planning and implementation of many KCET outreach programs,” said Muro. 

As agricultural specialist for the station’s viewing area, and representative for the agricultural sector in KCET’s outreach programs, Muro will bring his decades of experience to the Southern California area. According to a press release, as a CAB member Muro will become the station’s eyes and ears of the community as he advises the KCET body on programming and policies that will meet the viewers’ needs. 

CAB members serve a six-year term and meet quarterly. The members of this board represent a plethora of issues like community services, culture and arts, economy, health/medical services, aging/senior citizens, science/technology, youth, and education/schools in addition to agriculture. 

Topics specific to agriculture broached by KCET include the following:

• Inside LA’s Vast Urban Agricultural Landscape
• The Changing Faces of California Agriculture
• Sustainable Agriculture

As President and Founder of President Marketing, Muro possesses a unique fresh produce background to bring to the role with his work with fresh produce suppliers, associations, and retailers. Fusion Marketing specializes in the fresh produce industry and providing customized marketing and sales solutions to various commissions and produce companies.

Fusion Marketing