ZAANDAM, NETHERLANDS - In the latest for the highly-anticipated merger between Ahold and Delhaize Group, the FTC has charged the two retailers to divest 86 U.S. stores before they can proceed.

"Selling stores is a difficult part of any merger process, given the impact on our associates, customers, and communities in which we operate," said Frans Muller, President and Chief Executive Officer, Delhaize Group, in a press release. "We believe we have made every effort to identify strong buyers for these locations, and we want to thank our loyal associates and customers who have shopped our stores and supported us for so many years. Upon the completion of the merger, we will continue to maintain our local Food Lion and Hannaford brands; however, our new company scale will enable us to accelerate our local market strategies to better serve our customers with nearly 2,000 stores along the East Coast in the United States."

Already with a list of buyers, the breakdown of stores and purchasers of those stores are: 

• New Albertson’s, Inc. (part of Albertsons Companies based in Idaho): 1 Giant Food store in Salisbury, Maryland
• Publix: 10 MARTIN’S stores in Richmond, Virginia
• Weis Markets: 38 Food Lion stores in Delaware, Maryland, and Virginia
• Supervalu: 22 Food Lion stores in Maryland, Pennsylvania, Virginia, and West Virginia
• Big Y: 8 Hannaford stores in eastern Massachusetts
• Saubel’s Markets, based in Pennsylvania: 1 Food Lion store in York, Pennsylvania
• Tops Markets: 1 Stop & Shop store in Massachusetts, 3 Stop & Shop stores, and 2 Hannaford stores in New York

FTC clearance is the remaining regulatory approval for the $28 billion merger, which would combine the two chains for an entity consisting of more than 6,500 stores and over 375,000 associates internationally.

“The combination of Ahold and Delhaize Group is a unique opportunity to deliver even more for customers, associates, and local communities,” said Ahold CEO Dick Boer. “Together, Ahold and Delhaize Group have been working hard to resolve the competition concerns raised by the FTC, and we are pleased to have found strong, well established buyers for the stores we are required to divest. We deeply appreciate the long-time support of our customers and associates in these locations and are confident that the new owners will continue to serve local communities well.”

While each purchase agreement must go to well established-supermarket retailers, and are subject to FTC approval and clearance, both retailers reported that they still expect to close the deal by the end of this month.

The stock for both Delhaize and Ahold were up by more than 1% this morning upon the release of the announcement. AndNowUKnow will continue to follow the events of this and other mergers/acquisitions relevant to the industry.

Ahold Delhaize

HOUSTON, TX – Making moves to further expand the footprint and accessibility of its foodservice distribution services, Sysco Corporation has acquired innovative e-commerce platform, Supplies on the Fly. 

"With annual revenue of approximately $105 million, Supplies on the Fly has delivered consistent and impressive sales growth over the past three years, significantly outpacing category growth in supplies and equipment over the same period," stated Bill Day, Executive Vice President of Merchandising and Sysco Business Services. 

The Georgia-based e-commerce company provides restaurant supplies and equipment exclusively to Sysco customers, and is fully integrated with Sysco’s business information systems, according to news source Chron.com, allowing customers to place orders by phone or online for over 170,000 of the company’s products. 

Sysco had its hands in e-commerce company's previous development as in 2009, Sysco entered into an agreement with Supplies on the Flyer owner Instawares Holding, LLC, to develop the website suppliesonthefly.com. In this agreement, according to Chron.com, Sysco gained the option to purchase all of the equity interests of Supplies on the Fly, which it has now done.

"We are very excited to welcome our partners from Supplies on the Fly into the Sysco family of companies and we look forward to maximizing this opportunity to drive new growth in the $10 billion restaurant supplies and equipment segment," finished Day.

Supplies on the Fly’s current CEO, Craig Callaway, will continue to manage the company and will report to Day. Chron.com reported that Sysco will retain all current employees of the acquired company, and expects business to continue normally under Callaway and the Supplies on the Fly team.

Sysco has not yet disclosed the price of the acquisition.

Sysco

IRVINE, CA - In recognition of its place in the fight to advance agricultural technology, Western Growers has received a $30,000 grant from the Wells Fargo Foundation. The grant was awarded during the opening reception of the 2016 Forbes AgTech Summit on July 13. 

"Investment in technological solutions has never been more critical to agriculture, as we’ll need to dramatically increase food production to feed a rapidly growing population," explained Hank Giclas, Western Growers’ Senior Vice President, Strategic Planning, Science & Technology. "Wells Fargo’s generous contribution will be a key factor in helping Western Growers bring entrepreneurs together with farmers to develop these creative innovations."

According to a press release, Western Growers will use these funds to create scholarships for entrepreneurs who join the newly launched Western Growers Center for Innovation & Technology, which we announced late last year. Wells Fargo, which has a proven record of lending to the U.S. commercial agriculture sector, will be able to lend critical sector expertise and help speed up commercialization for ag tech startups, the ag group explains. 

"Working together with Western Growers to create a scholarship program for agriculture technology entrepreneurs will promote commercialization of technical solutions for agriculture," said Matt Servatius, Head of Wells Fargo CleanTech Banking. "The Western Growers Center for Innovation & Technology engages our customers and other stakeholders that are developing technologies to promote sustainability and resource efficiency."

Start-up companies that are awarded a scholarship will have access to the following, Western Growers says:

• A hot desk or workstation at the Center for Innovation & Technology for one year
• All the benefits of being a Western Growers’ member and resident of the Center
• Routine classes, workshops and networking opportunities to provide business and legal knowledge and customer connections
• Amenities of a traditional office, including: 
• Internet
• Phones
• Printers
• Copiers, meeting and conference rooms
• Technology to live stream events and presentations

Scholarships funded through the Western Growers Foundation will be awarded based on financial need, utility to industry, business model and market potential, among other criteria, the press release reveals. The 2,800-square-foot Center for Innovation & Technology currently houses 20 startups, and the scholarship would support 10 additional technology companies to receive a coveted spot in the incubator.

To apply for the scholarship or to learn more about the Center for Innovation & Technology, the organization asks that you contact Hank Giclas at [email protected].

Western Growers

PHARR, TX - SmartCold, a Triple H family company, has been providing distribution and logistics out of Pharr, Texas since 2015. Strategically located just a few miles away from the Pharr-Reynosa bridge, SmartCold has been providing its in-depth services to produce companies like Del Rey Avocado, a family-owned business that both grows its own product and buys from Mexico. Patrick Lucy, Vice President of Organic Sales for Del Rey Avocado, spoke with me about what made SmartCold his company’s choice for its produce distribution needs.

“We’ve been working with SmartCold since April of 2015, thanks to a recommendation from one of our Co-Packers out of Mexico,” explained Patrick. “We were looking for a new company to work with, and after meeting with the people at SmartCold, we not only loved what they had to say, but they’ve been able to back up their promises.”

Patrick and Del Rey Avocado were one of SmartCold’s first clients, with the company growing from just five loads per week back then, to an average of 20 loads per week today. Del Rey Avocado cited SmartCold as one of the driving forces behind its increased volume and decreased rejections.

“The clarity of communication we have with SmartCold is unmatched. Whether it be through fax, email, or phone calls—our team is never afraid to call and check in for updates on our products,” Patrick shares about his experiences with the distribution company. “It’s that willingness to go the extra mile and do special loadings past hours that makes the difference. It helps us pass on that better service to our customers.”

Ownership of the product, Patrick says, is something SmartCold has taken very seriously. Because Del Rey Avocado is based in California, the company can’t always have eyes on the product. SmartCold makes this a non-issue.

“SmartCold provides us with quality control checks and always lets us know if anything is dinged, or running hot,” Patrick went on. “We’ve been very happy with the service. To have an effective cooler in Texas where most of our product from Mexico goes through in invaluable.”

Want to learn more about the services SmartCold can provide to the produce industry? Visit SmartCold.us to get an even more in-depth look.

SmartCold Del Ray Avocado 

SALINAS, CA – As the Salinas Valley moves through the peak of its growing season, Church Brothers Farm has joined the Labor of Love program to show its growers in the area support during this intense period of harvest. 

As the most recent addition to the program, two Church Brothers harvesting crews were surprised with random acts of kindness.

As pictured below, Pat Stafford and Angel Guiterrez of Church Brothers Farms showed special thanks to Clemente Reyes for being “one of the guys that is always helpful... always ready to do whatever is needed!” According to a press release, Clemente has dedicated 25 years to the agriculture industry and in his own words, says that he “Love(s) coming to work each day and love(s) working at Church Brothers.”

On Friday, July 8th, one of the company’s crew was surprised with breakfast in the field. Another crew was surprised on Tuesday, July 12, with summer goodie bags waiting for them at the end of the day on the seats of their transportation out of the field. The bags contained beach towels, sunscreen, and sunscreen lip balm.

As most growers in harvesting season start their day before dawn, and does not end until sunset for some, the Labor of Love programs aims to support the hard work and commitment of agricultural farmworkers. The program’s goal is thank workers for their service to the industry, which results in year-round vegetables, with acts of kindess.

The Labor of Love program is ran by the Yuma Fresh Vegetable Association, and will continue throughout the Salinas Valley throughout the summer. Crews receiving support from the program will receive an assortment of kind acts, with different employees and companies being highlighted. 

Follow Labor of Love on Facebook or the program’s website to learn more about the program and see which crews and teams will be featured next.

Church Brothers Farms Labor of Love 

SALINAS, CA - As hundreds gather to see technology tied with agriculture, iFood Decision Sciences is adding to the platform with the launch of a new, on-trend method to collect and log important food safety and quality control data easily and with mobility.

Because now there’s an app for it.

“This new app is an enhancement to our existing system that allows food safety and quality control personnel increased mobility and ease when collecting data using an Apple or Android tablet,” Diane Wetherington, CEO of iFood Decision Sciences, said, according to a recent release. “Because these devices use either Wi-Fi or cellular data, they can be used in places where an Internet connection is not available or is spotty.”

Called iFood Decision Science’s--The Toolbox, this mobile method allows farm personnel to quickly complete field and harvest assessments required under both the stringent food safety regulations of today and third-party audits.

Available for download just in time for the ongoing Forbes AgTech Summit, which kicked off in Salinas, CA, yesterday and continues through today, The Toolbox is in line with the event that serves to smartest minds from both the high-tech and global agricultural industries.

“We are very excited to be unveiling this new app during the Forbes AgTech Summit,” said Wetherington. “We encourage interested companies to stop by the Innovation Showcase for a demonstration.”

“Technological solutions like our new app can help produce businesses simplify the burdensome task of documenting food safety data required of today’s fruit and vegetable farmers,” continued Wetherington. “The goal of all iFood Decision Sciences software solutions is to put our customers in control of their data so they can get back to the business of producing food.”

The company noted that other options for the app include conducting evaluations in packing, processing, or cold storage facilities for both food safety and product quality purposes. For field operations, the app allows companies to customize their food safety audit questionnaire according to specific Standard Operating Procedures (SOPs). Other capabilities include:

• Automatically recording exact date and time when information is entered
• Allowing users to record real-time photos of situations present in the field
• Noting when any SOP is found out of compliance and allows users to specify what corrective actions were taken  

Away from the field, options for facilities are also included, allowing a company using the app to customize evaluations for their own food safety procedures, as well as create product quality metrics. It can record data for items like product testing with targets specific to an individual commodity and/or variety, monitor temperature and store photos at time of shipment, and much more. If that isn’t enough, the company added that all data can be input and read in either English or Spanish.

“So many of our fruit and vegetable clients tell us their food safety personnel are spending as much as 60% of their time collecting and recording food safety data,” Wetherington said. “This leaves little time to focus on the more important job of managing risk and enhancing product quality.”

Users must have an account, set up for them by iFood Decision Sciences, before they can utilize the new app. For those not attending Forbes AgTech Summit and wanting to look into the app, you can learn more by going to www.idsfoodsafety.com.

iFood Decision Sciences

MONTEREY, CA – As the industry prepares for the next round of shows and programs to round out the event season, respected leaders, chefs, and even produce fledglings are looking forward to the upcoming PMA Foodservice Conference and Expo, and its desire to cultivate the passion within our industry. 

With the event peeking just around the corner, there’s one program in particular which will speak to the foodservice and culinary creativity side of the industry; the Hands-On Fruit & Vegetable Training Program.

Led by Jill Overdorf, Director of Business and Culinary Development and Corporate Executive Chef at Coosemans L.A. Shipping, this program looks to highlight the versatility and usage of different commodities with interactive application.

So just what unique opportunities does the program have to offer the industry? I took some time to speak with Jill about the event and her role, and she divulged the details in this exclusive… 

Q: What led to the conception of this program, and how does it add to the PMA Foodservice Conference as a whole?

Jill Overdorf, Coosemans L.A. Shipping: As a chef, I realized that there are very few opportunities for buyers, chefs, and menu developers to gather in an informal educational setting and learn about seasonal commodities that would be strong additions to their menus. PMA’s Foodservice Conference and Expo provided a natural opportunity to have attendees participate to learn more about fresh produce and the annual trends that are shaping purchasing and menu decisions.

Q: What are some of the diversifying or unique elements of this program, and how do you expect them to directly impact the industry?

Jill: I don’t know of any other day-long workshop taught by a chef with a passion for produce. With more plant-based menus being developed, this workshop provides the unique opportunity to touch, learn, taste, and envision new menu items based on the products being showcased. By opening the workshop with an overview of current trends, it will be easy for attendees to craft new and exciting innovations that will fit into their style of operation.

Q: How will an interactive program like this help the participating Career Pathways students grow as future members of the industry?

Jill: I have worked directly with Center for Growing Talent by PMA’s (CGTbyPMA) Career Pathways students since 2008. By introducing these new faces to products they have never tasted before, it broadens their palates and horizons for possibility.  Produce is about cultural identity, menu development, social trends, and good flavor; I have the enviable task of opening all of those doors for the Career Pathways students. And, by participating in the hands-on training, they will be able to interact with active industry members to network and ask questions about how they might fit into our amazing world of produce. 

Q: How does PMA’s Foodservice Conference and programs like the Hands-On Fruit & Vegetable Training benefit industry members?

Jill: I have attended PMA’s Foodservice Conference for almost a decade and I have learned that there are so many opportunities for one to learn throughout the weekend. By actively participating in all of the educational opportunities, an attendee can return to work invigorated and refreshed with new perspectives. Attendees should take advantage of the entire day of learning that is available to them on Saturday; companies would be well served to purchase a full access ticket so employees have the opportunity to learn about cutting edge ideas and trends and network. 

Q: What is one highlight to the Hands-On Fruit & Vegetable Training are you looking forward to the most, either for yourself or for participants?

Jill: Every year one or two of the participants in the Hands on Session will put their knife down, taste an item and start to smile; this is a great thing to watch. A flavor never before tasted, a product that was always so confounding to cut, a storage method explained – when I can provide that ‘a-ha’ moment for an attendee, I’ve had a great session. I am looking forward to another great workshop and I have already had some of last year’s participants let me know that they are returning – it should be another full room!  See you there.

For more information on the event at large and the Hands-On Training Program click here, and AndNowUKnow will see you at the Hyatt Regency Monterey Hotel & Spa from July 29-31!

PMA Foodservice Conference and Expo

CALIFORNIA - In an effort to avert the extinction of California’s Delta Smelt, state officials have proposed a plan that includes, among a number of strategies, the flushing of reservoir water into the Pacific.

With the intention being to build on the smelt habitat, which previously proved able to come back in certain conditions, the plan calls for 85,000 to 200,000 acre-feet of reservoir water to wash out to sea this summer.

“I would call that part a little bit strongly worded,” U.S. Bureau of Reclamation Spokesman Shane Hunt said Monday, according to the Sacramento Bee, after reviewing the state’s proposal. “We’re fairly confident we’ll get some water, but I don’t think we’ll get anywhere close to the top end of this range that’s in this document.”

The overall reaction from Federal dam operators are that the strategies are a bit ambitious, according to the report.

With much of the state still in a drought, any topic involving water is one that could raise contention, and this amounts to draining what accounts for 25% of Folsom Lake.

250,000 acre-feet is also called to be released into the Pacific Ocean next summer, both of which have raised concerns for some California communities and ag bodies about if this will affect our already highly sought-after water supply. The Sacramento Bee noted that 15 members of Congress from California sent a letter to the Obama administration last month, asking that it reject such a plan out of concern it could lead to Delta pumping restrictions that would “significantly reduce the water supply available to Californians.”

Hunt said that at this time, however, his agency does not have any plans to cut water deliveries, but rather to try to buy water from contractors or secure it for hydroelectricity.

Director of the State Department of Water Resources, Mark Cowin, also said that no plans to cut water deliveries are yet in place. 

Alternative strategies outlined in the same plan, proposed Tuesday, July 12th, were:

• Releasing more water through the Yolo Bypass into the north Delta to create more zooplankton that smelt eat
• Adding sediment, gravel, and sand to key areas of the estuary to improve the habitat
• Restoring 5,530 acres of tidal wetlands
• Providing additional funding to Sacramento-area governments to reduce stormwater contaminants
• Stopping the release of nonnative predatory fish into the Delta

You can read the state’s full proposal here.

With what is being reported as a critical time for both the Delta smelt and for California water, and a schedule for the plan to begin or be completed by 2019, AndNowUKnow will report on this further as more information comes to light.

BALTIMORE, MD - According to an annual market study of the top ten Baltimore retailers, conducted by Food World, Giant Foods is a leader in the region in supermarket sales. Based on the latest April-to-March fiscal year, the report shows Giant Foods generating $1.4 billion from 42 area stores; or about one-third of the total sales for the area.

Though they are in a top spot in the region, Giant’s market share in the area has been slipping over the past five years, according to the Baltimore Sun, with nontraditional food sellers such as convenience stores, drugstores, warehouse clubs, and mass merchants encroaching on traditional grocery sales.

"The market is still overstored," said Jeff Metzger, Food World's publisher, in the report. "There are a lot of different options in terms of the actual retailers themselves and the style of retailing. […] Baltimore is a very competitive, overstored, diverse marketplace, and it's been that way for about a decade now. It has created a lot of diversity, which is wonderful for consumers and not so wonderful for the actual retailers," he said.

While family-owned chains like Mars are selling stores, other competitive retailers on the list include Safeway which the report said maintained the number two slot, with $658 million in sales, and Shoppers Food & Pharmacy which was noted in third with $513 million in sales. Click here for the full list.

The study noted that nontraditional food retailers, such as CVS, Costco, and Target, continue to carve out a significant share while conventional retailers that have been expanding in the Mid-Atlantic, such as Harris Teeter, Wegmans, and international food retailers, are growing and having an impact on the perennial market leaders.

Continue to read AndNowUKnow as we keep our finger on the pulse of the retail market.

Giant Foods

SALT LAKE CITY, UT - Seald Sweet International is expanding its use of the ReposiTrak® Compliance Management System, enabling it to evolve with the FSMA rules being finalized and augment its already robust food safety protocols.

“Food Safety is of critical importance to our company,” Mayda Sotomayor, Seald Sweet’s CEO, commented in a press release. “As our company continues to grow, it is imperative that our infrastructure and management systems ensure we are in compliance with all FSMA regulations as it pertains directly to Food Safety and traceability.”

Part of that continued growth is the recent expansion of Greenyard’s, who Seald Sweet merged with in June of last year, northeast U.S. operations and the development of a new New Jersey-based state-of-the-art fresh produce distribution facility.

Seald Sweet currently plans to relocate its northeast sales operations to that new facility when it opens in February of 2017.

“We needed an automated system that would enable us to better manage required documentation from our domestic and international suppliers, now that FSMA’s Foreign Supplier Verification Program has been finalized,” said Carlos Sotomayor, Manager of Food Safety for Seald Sweet. “After using ReposiTrak on the supplier-side, we experienced that the system was accurate, efficient, and the best choice.”

The platform, which is powered by Park City Group’s technology, has two systems to manage compliance for missing or expired documents, or Compliance Management, and quick identifications of products in case of a recall, or Track & Trace.

“Our best-in-class user experience is one of the main reasons that well-known global suppliers, such as Seald Sweet International, are choosing ReposiTrak to manage their own upstream supply chains,” said Randall K. Fields, Chairman and CEO of Park City Group. “Their commitment to food safety and supply chain transparency make us proud to have them utilize our system.”

With FSMA regulations and rising demand for transparency in food safety, ReposiTrak®’s touts the ability to reduce the risk in the supply chain by identifying backward chaining sources and forward chaining recipients of products in near real-time.

Seald Sweet International