US Foods' Stacie Sopinka and Amanda Schmid Talks New Serve Good Foodservice Line



ROSEMONT, IL - “We are hoping to support our customers while meeting the demands of the changing demographics. People don’t change their values from when they eat at home to when they eat out, so it really is about bringing foodservice to the forefront of current trends,” Stacie Sopinka, Vice President of Product Development and Innovation at US Foods, tells me as we discuss the launch of Serve Good.

Stacie Sopinka, VP of Product Development and Innovation, US Foods

In an effort to help independent restaurateurs meet this changing consumer demand, the Serve Good line of products offers 21 responsibly sourced items – including produce – that also contribute to waste reduction the benefits of versatility and time and labor savings in the kitchen. According to US Foods more consumers are seeking food that is sustainably produced and sourced. In addition, less than 1/3 of consumers feel that restaurants offer enough clean, sustainable menu options.

Enter the new Serve Good line. This line offers a range of items from produce pickings like Cross Valley Farms® Chopped Broccoli Leaves, one of the latest superfood discoveries, to the company’s Cross Valley Farms® Organic Spring Mix. Broccoli leaves capture more goodness from one plant, minimizes water usage and yields an additional 2,640 pounds of product harvested per acre. The organic spring mix is more cost-efficient, offers superior quality, taste, and year-round availability with the additional perk that the packaging facility for this product is required to clean this spring mix with an organic solution.

Other items include Chef’s Line® All Natural Turkey Breast Roast, Harbor Banks® Barramundi, and Monarch® Eggless Spread, just to name a few.

Amanda Schmid, Sr. Product Developer tells me that the two big trends around food-sourcing, specifically in produce, are waste-reduction and waste-management. Amanda has been with US Foods for about four years, mainly working in the grocery category. Prior to that she worked for the CPG company Sarah Lee on a commercialization team working to nationally launch some of the company’s branded items.

Amanda Schmid, Senior Product Developer, US Foods

“More and more, consumers want to know that their food is responsibly sourced and they also want to know its impact on the environment,” Amanda says. “The broccoli leaf, which used to be a throwaway part of that piece of produce, is now utilized not only for its flavor, but for its impact on waste reduction. As these new demands from the consumer continue to grow, we also launched our organic spring mix and have seen a lot of success across our customer base. Organic demand is also growing exponentially and is something that consumers are looking for when they are shopping for product. This goes hand-in-hand with the whole clean ingredient movement and trend and we want to stay ahead of the constantly evolving consumer buying behaviors.”

When I ask what it took to bringing bring the Serve Good line from vision to market, Stacie tells me, “We knew that there was an opportunity in sustainable food and sourcing with the evolving consumer food trends. We were waiting for the right point in time for us to enter with sustainable products. That happened when we had built up our innovation pipeline and had the right supplier relationships that would enable us to launch nationally. It also came down to reading the market and ensuring the market was ready.”

Stacie and Amanda both add that sustainable items are not as prevalent in restaurant foodservice yet, relative to retail, so foodservice customers need to realize the importance of sustainability to the consumer. The conversation around sustainability in college and university healthcare has been ongoing for quite some time, Stacie notes, and US Foods’ customers had been repeatedly asking for assistance in finding products, especially on a national scale, since so much was only available regionally.

“It was difficult for a large national customer to find these products,” Stacie says. “It was really the intersection of those two areas that moved this launch forward and the fact that we felt the time was right.”

While the foodservice menu is changing and consumers become more and more aware of the importance behind food sourcing, US Foods looks at this trend as an opportunity. While the line is a form of innovation, it also offers that differentiation and that authentic story that consumers crave.

US Foods


Red Sun Farms Joins Ohio Proud Program



WAPAKONETA, OH – Expanding on its commitment to the Ohio community, Red Sun Farms’ has recently joined the Ohio Department of Agriculture’s “Ohio Proud” program. This program was developed to promote Ohio-made and grown goods throughout the state.

Harold Paivarinta, Director of Sales and Business Development, Red Sun Farms“We are thrilled to be the latest organization joining the Ohio Proud family. More and more of our retail and food service partners are stressing the importance of locally grown produce. At each of our locations, we take great pride in immersing ourselves in the local community to provide the best local produce. Joining Ohio Proud was a natural step in integrating Red Sun Farms into the Ohio community and spirit,” said Harold Paivarinta, Director of Sales and Business Development for Red Sun Farms, according to a press release.

Red Sun Farms broke ground on its newest greenhouse and distribution center back in June and construction is on schedule in Wapakoneta. The company expects to start the hiring process this fall, with an anticipated 400 positions to fill, and plant its first crop in early 2017. In the future, the operation may span over 200 acres within the next 7-10 years.

Lori Panda of Ohio Proud is excited to have Red Sun Farms building a facility right in the center of the state, saying, “Ohio Proud is excited to welcome one of our newest partners, Red Sun Farms, to the program. Our mission is to promote food and agricultural product that is at least 50 percent grown, raised or processed in Ohio. Red Sun Farm’s newest greenhouse is an Ohio-based farm operation that will provide retailers in the Buckeye state fresh produce year round. Their operation will be a great asset to the agriculture industry, and we are certainly looking forward to seeing Red Sun Farms product in grocery stores with the Ohio Proud logo.”

AndNowUKnow will continue providing the latest in growth and expansion news throughout the fresh produce industry.

 Red Sun Farms


Broccoli Truck Spill Closes Portland-Area Interstate



FALMOUTH, ME - Everyone’s favorite mini tree-shaped veggie made an appearance outside the cushy home of a supermarket shelf. A noontime truck spill on a Portland, Maine-area interstate gave way to a cascade of hundreds of pounds of broccoli last week. 

Causing a several hour traffic back-up at exit 11 on I-295 to close, Lt. Erik Baker on the scene said the accident was likely caused by the driver taking too sharp and fast of a turn on the off-ramp, causing the weight of the truck to shift and tip. 

Broccoli from the spill. Image via WCSH6 News.

Thankfully for broccoli lovers everywhere, efforts were made to salvage the crop, with workers forming an assembly from the crash to a new truck, reports local news source WCSH6. Police estimated a four hour clean up time to make sure the interstate was veggie-free, with the real time cleanup wrapping up just little before 4 PM local time.

Baker shared with reporters that the driver, Victor Brendana Jarquin, was transferred to Maine Medical Center in Portland with only minor injuries—mainly superficial cuts. 

The fallen broccoli truck. Image via WCSH6 News.

Looking back, this may be the summer of produce truck drama, it seems. In just a little over the past month, ANUK has reported on two banana truck fires, a stolen truck containing 2.66 tons of tomatoes, and another truck fire involving tomatoes

Will the produce drama continue to ensue across our unaware interstates? AndNowUKnow will continue driving you to the latest.


Slim Workforce has China Demand Projected at 150,000 Robots for 2018



SHANGHAI, CHINA - One of the leading countries in manufacturing is anticipating a rapid rise in robot demand in the next couple of years.

A slimming workforce is boosting the need for automation, according to a Wall Street Journal report, with projections hitting a want for as many as 150,000 robots by 2018.

Stefan Lampa, Chairman of Robotics Division, Kuka AG“China is saying, ‘we have to roboticize our industry in order to keep it,’” Stefan Lampa, Chairman of the Robotics Division of Kuka AG, a German automation firm and a supplier to Shanghai-based Suzhou Victory, told WSJ.

WSJ notes that it isn’t only the number of robots China wants that is shifting, but the style as well. As we in the fresh produce industry are acutely aware, the demand for automation with precision and flexibility is growing, and China is much the same.

Contributing factors to the rising wave include a slimming workforce and a rise in hourly wages.

Suzhou Victory Precision Manufacture Co.’s Chairman, Yugen Gao, told the news source that a slimming workforce is a byproduct of the country’s one-child policy, began to formally phase out in 2015 after more than 35 years in place.

Additionally, China’s labor costs per hour, including benefits, has more than doubled percentage-wise in the last 15 years, according to WSJ.

Now, as of 2013, International Federation of Robotics reports that China’s is one of the world’s largest markets for industrial robots as automation costs become less of a concern. Last year, the country’s manufacturers bought almost a quarter of the global sales of robots at 67,000.

“We have to consider investing in robots so that the company can survive longer,” Gao said to WSJ, which noted that his company signed on with Kuka for 160 jointed-arm robots this year.

As you may have read in our sister publication, The Snack Magazine, Kuka’s North American arm is designed to be light, fast, and powerful, already being incorporated into the automation side of fresh produce.

Now it looks like that reach has more room to extend as manufacturing markets continue to seek efficient technologies. AndNowUKnow will continue to report on this and other high-tech developments that could have a hand–mechanized or otherwise–in the future of our industry.


Hollandia Produce's Brian Cook Talks Live Gourmet Heartless Living Baby Romaine



CARPINTERIA, CA - Being heartless might not be a marketable quality in humans, but when it comes to romaine, Hollandia Produce would be glad to tell you the many benefits.

Hollandia Produce launched its Heartless Living Baby Romaine lettuce in June. The new variety- born of a desire for dark, nutrient dense greens in romaine- received accolades via its nomination for the Best New Vegetable Product at United Fresh. When we checked in to see how the program is going, the company reports that consumers are loving the romaines freshness and flavor.

Brian Cook, Vice President of Sales, Hollandia Produce

“Live Gourmet Heartless Living Baby Romaine is my favorite product in our line-up. It’s crisp but tender leaves are so sweet, and since the plant is young I can put some turkey in the leaf and roll it up for a quick protein snack,” said Brian Cook, Vice President of Sales at Hollandia.

The product is sized to accommodate one entree salad or two side salads. The supple leaves also work well for lettuce wraps. Each bite packs a crisp crunch along with higher values of vitamins A, C, K and even some protein, the company reports.

The product is an improved version of a family favorite. According to Hollandia, the advantages of the living lettuce product line are that keeping roots intact boasts longer shelf life, increased freshness, less waste, crunchier texture, richer color, and a sweeter flavor.

The Heartless Living Baby Romaine is grown year-round in greenhouses from Oxnard, CA, and available in single count and two packs in micro-perforated flow bags, designed to minimize waste. As with all Hollandia products, the Live Gourmet Heartless Living Baby Romaine is non-GMO verified.

For increased sales, Hollandia advises retailers to merchandise all living products together in the store, since consumers will shop the category for its taste, freshness, and long shelf life. If needed, the product can be placed in with the wet veg when a pusher system is in place, or with other ready to eat salads.

Hollandia Produce


FreshSource, LLC Hires Justin Hill as National Director of Bakery, Deli, and Frozen



ORANGE, CA – FreshSource continues to secure its team of experience-heavy members, this time adding Justin Hill to its lineup of leaders. Justin is translating his ten years of buy-side experience as the company’s newest National Director of Bakery, Deli, and Frozen categories.

Justin Hill, National Director of Bakery, Deli & Frozen, FreshSource

Justin is joining the company fresh off of eight years with retailer Tesco, with unique professional assets obtained in Retail Buying and Category Management. 

“He is an expert in strategic planning and analytics, and has a proven track record of identifying and executing new opportunities for growth,” the company said in a recent statement. 

This new position, along with Justin’s previous experience, has flushed his portfolio with a multi-faceted background that now includes the following:

  • New product development
  • Operations
  • Strategic marketing
  • Merchandising
  • Promotional planning
  • Supply chain management 

Justin’s new role with FreshSource with span a national level for the categories which he will serve as National Director for. Justin also holds a Bachelor’s Degree from Ohio University.

In his less professionally-minded realms, Justin enjoys being a barbecue pit master, cycling, paddle boarding, and volunteering his time as an Auxiliary Board Member at St. John the Baptist School. 

Justin’s hiring is the latest in a string of additions for the company. AndNowUKnow will continue to report as the company grows its valued set of team members in the industry.

FreshSource


Ready Pac Foods Partners with Domino's to Offer Pre-Packaged Salads Nationwide



IRWINDALE, CA – Expanding its portfolio to include further foodservice options, combined with the consumer allure for pizza, Ready Pac Foods has announced that its salads will now be easily available on a nationwide scale through a new partnership with Domino’s.

Joe Jordan, Chief Marketing Officer, Domino's"Now everybody can be happy on pizza night," said Joe Jordan, Chief Marketing Officer at Domino's. "There's no shame in wanting salad when everyone else wants pizza, especially now that Domino's has found a perfect way to offer even more options for customers across the country. The new Chicken Apple Pecan option might even lure a few pizza lovers over to the salad side!" 

Ready Pac Partners with Domino's to Offer Pre-Packaged Salads Nationwide

Ready Pac Foods stated in a press release that the company will offer a three variety selection of pre-packaged salads for the salad and pizza loving consumers of the national chain. The flavors are as follows:

  • Classic Garden
  • Chicken Caesar
  • New, Chicken Apple Pecan

By picking up the innovations of Ready Pac, Domino’s will not only diversify its options for consumer’s, but become what the company says is now the largest national pizza chain to deliver salads. 

Tristan Simpson, Chief Marketing Officer, Ready Pac Foods"We are thrilled that our salads are now available for Domino's customers in every store," said Tristan Simpson, Chief Marketing Officer at Ready Pac Foods. "Everyone who loves pizza night can now breathe a deep sigh of relief, and enjoy Domino's Classic Garden Salad with that slice of pizza." 

To make every type of eater happy, Domino’s new Ready Pac Foods salads are available for $5.99 when you add them to any of the chain’s mix and match menu items. Consumers can now add their veggie proclivities for salads to medium two-topping pizzas, specialty chicken, eight-piece chicken, cheese breads, and more.

What kind of partnerships can the diversity of fresh produce be packed into next? AndNowUKnow will keep you updated with the most recent foodservice ties and announcements.

Ready Pac Foods 


H-E-B Buys Six Sun Fresh Market Locations



SAN ANTONIO, TX - H-E-B looks to be expanding its footprint once again, particularly in the northern region of the Lone Star State.

The retailer has bought six locations from the local Sun Fresh Market, four in Uptown, Lake Highlands, Lakewood, and Northwest Dallas. The other two locations are located in McKinney and Grapevine.

"At this time, Central Market continues to be the primary format for Dallas-Fort Worth," said Todd Piland, H-E-B Executive VP of Real Estate, according to The Dallas Morning News. "We are currently evaluating the feasibility of each site to determine the most effective use of the properties."

Mabrie Jackson, Director of Public Affairs, H-E-BMeanwhile, Director of Public Affairs Mabrie Jackson told the news source that H-E-B/Central Market is thrilled to have these new stores, which Sun Fresh is currently in the process of closing after only a year or so of operation.

H-E-B has made several strides in expansion since Scott McClelland, Houston Division President, H-E-B it was reported that growth was top of mind for the chain back in May, including the announcement of two more stores in hometown San Antonio and upping its land ownership to 20 pieces in the state.

This most recent acquisition boosts the retailer’s position in what are being reported as burgeoning retail markets. AndNowUKnow will continue to report once it is determined if these will be additional H-E-B locations, more growth for it Central Market format, or both.

H-E-B


Rains to Continue as Louisiana Deals With Flooding Aftermath



SOUTHERN EASTERN U.S. - A slow-moving storm system has caused massive flooding throughout the central Gulf of Mexico coast this past weekend. Rain levels over the past few days have reached over 30 inches in some parts of Louisiana.

The heavy rains sent local rivers to the flood stage, breaking records in some cases. Reportedly, record crest levels were surpassed on the Amite, Comite, and Tickfaw rivers just east of Baton Rouge, Louisiana.

From August 10 through 13, AccuWeather has tracked the following rainfall totals:

  • Baton Rouge, LA: 19.24
  • New Iberia, LA: 18.76
  • Lafayette, LA: 20.91
  • Monticello, LA: 26.26
  • Denham Springs, LA: 27.45
  • Brownfields, LA: 27.47
  • Jackson, LA: 21.56
  • Watson, LA: 31.39

While there were a few submerged highways over the past weekend, it doesn’t seem like fresh produce transportation will be affected in a meaningful way. I spoke with Kenny Lund, V.P. of Operations for Allen Lund Company, who was optimistic about the region's ability to handle the opposition.

Kenneth Lund, V.P. of Operations, Allen Lund Company and ALC Logistics

"The people working in the region know how to handle these conditions, and they have good contingency plans in place," Kenny tells me. "The professionalism of these offices will make sure these goods get to where they need to be."

Over the next few days, the threat of flash flooding will expand to parts of Texas and Arkansas through Tuesday. According to AccuWeather, the heaviest downpours will be focused from central and coastal Texas, and western Louisiana to southern and eastern Arkansas.

AndNowUKnow will continue to track this storm as it effects the fresh produce supply chain.


Sysco Beats Wall Street Estimates as it Reports Q4 and FY 2016 Financials



HOUSTON, TX - Sysco has released its Q4 and fiscal year 2016 financial report this morning, not only beating Wall Street’s estimates on earnings, but also increasing sales by double-digits on a year-over-year basis.

Bill DeLaney, Chief Executive Officer, Sysco

“I am very pleased with our performance during fiscal 2016, as we made significant progress toward our three-year plan financial objectives,” shared Bill DeLaney, Sysco’s Chief Executive Officer, upon the release of the report. “During the year, we had strong local case growth, improved our gross profit, managed expenses well, and drove increased operating income. Looking forward, we remain highly focused on supporting the success of our customers, profitably growing our business, and achieving the objectives of our three-year plan.”

Graphic Credited to Google Finance

Prior to the report, analysts at Nasdaq had estimated the company's non-GAAP earnings per share to reach 60 cents, which Sysco beat to reach 64 cents per share. This win had Sysco’s shares up by 5% in pre-market trading, Nasdaq reports, but by 1 PM EST stocks had leveled out to near even, hitting $52.17.

Other highlights from Sysco’s Q4 and fiscal year 2016 included:

  • Q4 Sales increased 10.0% to $13.6 billion
  • Q4 Gross profit increased 12.7% to $2.5 billion; gross margin increased 44 basis points to 18.3%
  • Q4 Operating income increased 351.9% to $547 million; adjusted operating income increased 23.4% to $628 million
  • Q4 Earnings Per Share increased $0.26 to $0.38; adjusted EPS increased $0.12 to $0.64
  • Fiscal 2016 Sales increased 3.5% to $50.4 billion
  • Fiscal 2016 Gross profit increased 5.7% to $9.0 billion
  • Fiscal Year Operating income increased 50.5% to $1.9 billion; adjusted operating income increased 12.1% to $2.0 billion
  • Fiscal Year Earnings Per Share increased $0.49 to $1.64; adjusted EPS increased $0.26 to $2.10

On the tails of an abandoned merger between Sysco and US Foods, Sysco recently closed a $3.1 billion acquisition of U.K. distributor Brakes. This reportedly grew sales by 10%, reaching $13.6 billion.

How will fiscal year 2017 look for a thus far thriving Sysco? AndNowUKnow will keep dishing up the latest.

Sysco