EXETER, ON - As Huron Produce continues to make its mark in the Lone Star State, the company has opened its brand new Edinburg, Texas, 211,000-square-foot distribution center.

“This cutting-edge distribution facility will carry the Suntastic product line, facilitating access to premium quality produce for our southern customers,” said President, Jeff Kints. “We look forward to establishing a significant presence in Texas and enhancing our timely delivery and industry leading order fill rates.”

This new facility aligns with the 3rd generation family-owned and North American-operated company’s continued commitment to providing fresh, greenhouse grown produce for its customers, according to a press release.

The new distribution center showcases over 43,000 square-feet of climate controlled space which boasts storage coolers, cold dock, and dry storage, as well as multiple loading docks among its many beneficial components. 

Specifically designed for produce storage and distribution the new facility offers LED lighting, energy efficient refrigeration systems with low global warming potential refrigerants, USDA finishes, continuous cold chain and the latest food safe designs, the company added. 

With Huron Produce investing heavily in product development, process improvements, and quality enhancements, the Texas facility will advance operational efficiencies and enhance quality control, allowing Huron to better respond and to customers’ needs.

“We are expanding for our customers. This new facility will allow us to increase our direct shipment capabilities which means fresher produce,” Andy Glavin, Huron Produce COO, said.

Congratulations to Huron on this next step in company growth, and we look forward to what is to come!

Huron Produce

MINNEAPOLIS, MN - On the heels of Target’s May financial report, according to Reuters, which noted a drop in sales for the quarter which ended April 30, the retailer is asking some suppliers "to take on up to an extra 3-5 percent of the cost of promotions and price cuts after slow sales so far this year." As of last month, a dozen suppliers confirmed with Reuters that Target has demanded that they assume more of the costs which are specifically related to marketing and selling slow-moving items. This new demand from Target crosses multiple departments.

So what is the scale of these costs? That number varies on a case-by-case basis and are confidential, but, Reuters reported, in total during the year ending January 30, 2016, suppliers gave $379 million to Target to fund such costs, latest annual report notes.

"Target is not leaving a lot of room for negotiation here," one supplier who asked to remain anonymous, told the publication. "They want to get this unsold stock out of their stores in the next three months."

Some suppliers shared that they will have to comply, or at bare minimum, deliver part of Target's demands so that the movement of old stock can make way for new items. The retailer seems to be motivated by the desire to decrease the impact of markdowns on profit as middle income shoppers make fewer “discretionary” purchases.

I inquired with Target spokesperson, Katie Boylan, about the recent update and she commented that, "Target values our partnerships with our vendors, and we’re committed to fostering productive working relationships with them in service to our guests. As part of our everyday business practices, we work together with our vendors to build ongoing promotional plans that drive traffic and sales. These promotional plans are fluid and flexible, designed to deliver the best offers for our guests and the strongest results for Target and our vendors. To be clear, we have not implemented any new policies. This is how we have always done business and is a common industry practice." 

Competitor Walmart has not experienced such a financial hit but has been asking suppliers to give the retailer lower prices.

Reuters also reported on additional Target activities which include:

• The retailer applied pressure at recent annual one-on-one meetings, as communicated by nine suppliers.
• One consumer goods manufacturer said that this year Target insisted on meeting with the three product division heads as opposed to just one contact, to ensure its demands were communicated.
• Target's suppliers reduced spending last year on promotions and price cuts by 11 percent from $426 million at the end of Jan. 31, 2015, according to the company's annual report. This is known as vendor income receivables.
• Data in the annual report detailed that inventories hit $8.6 billion from $8.28 billion a year earlier, around this same time.

As we previously reported back in May, Target had announced a multi-billion dollar plan to crack down on its supplier relationships, and would be tightening deadlines for its deliveries and increasing fines for those who miss the deadline. Penalties could reportedly reach up to $10,000 for inaccuracies in product information, according to a letter sent to suppliers and obtained by Reuters. Both Executive Vice President and Chief Operating Officer John J. Mulligan, and CEO Brian Cornell worked on these changes with a group of over 200 suppliers. 

So, what is Target’s next move as it looks to address the recent drop in sales? Stay up to date with AndNowUKnow as we bring you the latest on the volatile and evolving retail market.

Target

MONTEREY, CA - Ocean Mist Farms is continuing to further its stance on contributing to the future through furthering education for the next generation, having presented its academic scholarship last weekend at the 57th Annual Castroville Artichoke Food & Wine Festival in Monterey, CA.

There to celebrate the latest addition to the company’s Academic Scholarship Program, was CEO Joe Pezzini, pictured below at the big event.

Ocean Mist Farms’ Academic Scholarship Program set forward a plan to award a total of four $1000 academic scholarships to deserving local high school graduates with a 3.0 GPA or higher.

“Our mission with the Ocean Mist Farms Academic Scholarship Program is to recognize local high school graduates who demonstrate the guiding values of integrity, quality, passion, and success in their daily decisions and in their pursuit of a higher education,” the company’s Director of Marketing and Academic Scholarship Committee Chairperson, Diana McClean, tells me. “It is our honor to be a part of their future success.”

The four scholarships were in acknowledgement of a student’s excelling in any one of the four categories:

• Integrity
• Passion
• Success
• Quality

As a previous sponsor of the artichoke-centric festival, it was fitting that the company’s contribution to helping grow the next generation be presented at the annual event.

According to its website, Ocean Mist Farms will be looking for its next round of recipients in the fall of 2017. AndNowUKnow will continue to follow this and other moves in the industry to help strengthen the future of our industry and its consumers.

Ocean Mist Farms

IRVINE, CA - With the anticipation of hitting a record 120+ million pounds during the Fourth of July merchandising period, the California Avocado Commission has announced that it is bringing back its integrated marketing program.

“California avocado quality is outstanding, and now, leading up to and through the holiday, is a great time to merchandise them with point-of-sale (P.O.S.) materials calling out the Fourth of July and American Summer Holidays,” Jan DeLyser, CAC Vice President of Marketing, said in a press release.

The expected volume would be a two million pound boost over last year, and the commission is looking to launch a program featuring consumer and trade advertising, social media, public relations, and customized retailer support.

“California is the only commercial domestic source of Hass avocados, making California avocados the best choice for patriotic promotions,” added DeLyser. “From Memorial Day, to the Fourth of July, to Labor Day California avocados are a natural fit.”

The commission added a plan to incorporate targeted digital advertising to call attention to more than a dozen summertime party recipes involving avocados, as well as supporting the Independence Day promotional period with a post on its blog The Scoop.

CAC’s public relations consumer outreach portfolio includes blogger campaigns and summer entertaining recipes by Chef Trey Foshee of Georges at the Cove, San Diego, and Chef Pink of Bacon and Brine, Solvang.

Retailers merchandising California avocados can find customized support from the commission like feature ads, displays themed to the Fourth of July and American Summer Holidays, and P.O.S. materials. Those materials can be ordered from the CAC website here.

California Avocado Commission

CALIFORNIA - In new rulings this week, California’s State Water Resources Control Board has decided it will not take action against either the Byron-Bethany Irrigation District or the West Side Irrigation District, both of which were accused of illegally diverting water during drought conditions.

The Byron-Bethany Irrigation District, which would have been fined $1.5 million, has been given reprieve by the water board. This is despite being accused of illegally diverting water from a pumping plant for 12 days following the board’s announcement that its water rights would be cut. According to NPR, the irrigation district, which is near Tracy, California, holds some of the oldest, most senior water rights.

Also decided by the board, was to dismiss its cease and desist order against the West Side Irrigation District in Tracy for allegedly pumping water out of Old River. Had state officials chosen to continue with their order, the district would have been subject to penalties of up to $10,000 for each day of noncompliance, and potentially referred to the Office of the Attorney General for further action. 

“The Board determined that it has the authority to enforce against senior water right holders who take water if there is not an adequate supply for them under the priority system," explained Felicia Marcus, Chair of the State Water Board, in a press release. "The Board also concluded, however, that there was not sufficient data presented in this case to show that these particular water districts violated the water rights priority system.”

As more information and further investigations of potential water rights abusers are revealed, AndNowUKnow will bring the latest to your inbox.

State Water Resources Control Board

NEW YORK, NY – After filing for Chapter 11 at the beginning of last month, Fairway Group Holdings Corp. has announced a reorganization plan that is projected to cut the company’s debt in half and move it out of bankruptcy. 

"We will continue to provide to our customers the best food experience in the greater New York area, and we pride ourselves on continuously improving our product offering while maintaining the freshness and quality our loyal customers have come to expect," stated Jack Murphy, Fairway CEO.

The Plan of Reorganization will reportedly move Fairway out of bankruptcy sometime during the week of June 20, with a sizable reduction to its $140 million debt, a reduction of the company’s annual debt service obligations by up to $8 million, and cash assets.

"We will emerge from bankruptcy with a stronger balance sheet, $50 million in cash, and the backing and commitment from the senior lenders and new shareholders to re-invest in the future of Fairway," added Murphy.

Fairway’s plan was unanimously accepted by 100 percent of the voting secured lenders, and confirmed by Bankruptcy Judge Michael E. Wiles, according to a recent press release from Fairway. 

Senior secured lenders will exchange their loans of company debt for new ownership of the company and some reinstated debt. Fairway also stated that outstanding shares of common stock will be cancelled with no distribution to its holders. 

The company stated that all 4,000 of its employees will keep their positions, and collective-bargaining agreements for workers who are unionized will not change. 

The Wall Street Journal (WSJ) reported that Fairway’s plan also included liability protections for the company, its lender, and its executives, to protect the parties from lawsuits after they emerge from bankruptcy.

Judge Wiles was unnerved by the initial scope of the liability releases, stating that they were not a reward for cooperation, according to the WSJ. Fairway’s Chief Restructuring Officer, Dennis Stogsdill, said in court that the releases were essential to the negotiations, however, the company then scaled back the size of the releases.

"Thank you to all the customers who have continued to support Fairway. Our stores are open and stronger than ever," finished Murphy. 

The company also announced that it plans to open a new Fairway store in Georgetown, Brooklyn, later this year.

Keep up with AndNowUKnow as we can keep an eye on the chain, and the integration of the company’s emergence from bankruptcy.

Fairway Markets

MONROVIA, CA- While Trader Joe’s continues its growth across the U.S., the company is focusing one of its new openings on the ever-evolving New York City grocery scene. The retailer recently announced plans to open a second store on the Upper West Side.

This latest growth comes on the heels of previously announced plans to open a new store in Kips Bay this summer, according to the New York Business Journal. The new stores will bring the retailer’s New York City locations to six. And as DNA Info reports via the Journal, that count could be bumped up to seven as it is also eyeing an East Village locale on 14th Street between Avenues A and B.

For this most recently announced Upper West Side location, Trader Joe’s has signed a lease for the ground floor and lower level of 670 Columbus Ave., which will put in right in the vicinity of a Whole Foods just four blocks away, DNA Info reports. Paired with another store it already operates in the neighborhood at 72nd and Broadway near Fairway’s flagship store, this neighborhood is sure to feel the competitive retail heat. Expected to open within the first six months of 2017, the new location will be approximately 12,100 square feet.

The New York Business Journal also adds that the local grocery scene has been in flux over the past year, with notable instability including the A&P bankruptcy that left a third of stores unsold, Fairway’s financial troubles, and the additon of online grocers, meal kit services, and food delivery startups into the mix.

Where will Trader Joe's expand to next? Stay tuned to AndNowUKnow to find out.

Trader Joe's

IRVING, TX – As the company continues to hire new talent, expand and add service offerings, and promote executives within the industry, DMA Solutions, Inc., says that fresh produce marketing as a whole is a catalyst for growth within the industry at-large. 

Some of these growth-centric team expansions within the company include the promotion of Megan Zweig to Vice President. Zweig’s position will ensure that clients’ goals and objectives are met, while supporting business growth and development.

Brock Nemecek and Marci Allen were also promoted in the company to Account Directors with DMA Solutions. In this position, the two will manage day-to-day marketing efforts for each brand, and build teams to support inbound marketing strategies, partnerships, campaigns, and promotions. 

The company stated in a press release that in the last 18 months DMA Solutions has increased its talent pool by 40 percent and expects to continue growing over the next five years.

“Fresh produce marketing is in the midst of a renaissance and our company’s evolution is a direct result of an industry that is rapidly recognizing that marketing can be as much of a catalyst for growth as sales,” said CEO Dan’l Mackey Almy. “We are progressively adapting our business and services to support the growing needs of fresh produce companies as they seek to be present in a meaningful way by connecting with the people consuming their products.” 

The company has also restructured and fully integrated its social media within the company’s team of experts to be relevant and accessible 24/7. DMA Solutions has also expanded its portfolio of public relation services, supported by the company's previous appointment of Beth Atkinson as its Public Relations Manager.

These recent changes and successes at the company, said DMA Solutions, have been driven by advanced marketing techniques and solutions, which have led to increased sales amongst brands who work with the agency. 

“Long gone are the days when marketing was an extra task for someone in sales,” finished Almy. “The type of measurable marketing that focuses on driving sales and profitability requires a dedicated team, which is why we have added four new team members in 2016 in order to support the brands we represent.” 

Check in with DMA Solutions, Inc., and learn more about its expandings at the upcoming United Fresh Convention.

Congratulations to the DMA Solutions team, from everyone here at AndNowUKnow!

DMA Solutions, Inc. 

SOUTHEAST, U.S.- While the National Hurricane Center declared Colin as "post-tropical" late Tuesday morning and all tropical storm warnings for Florida had been cancelled, flood watches still remained in effect for 24 counties as of yesterday. According to The Weather Channel, Colin's center of circulation became elongated and not well defined as it moved off the Southeast coast, meaning it will no longer be considered a tropical cyclone over the western Atlantic Ocean. The storm was downgraded early Tuesday at which point it then swept across Georgia on its path to the Atlantic, also affecting parts of South and North Carolina, according to a report by Reuters.

While the storm has let up, some growers and shippers in the area tell me they will need more time to assess the damage, if any.

Frank Paone, Director of Marketing for Procacci Brothers, tells me, “We're keeping an eye on North Florida where most of the tomato production has shifted - obviously if the amount of rainfall being discussed pans out, you're going to see setbacks from your initial projections and susceptibility to quality issues that can result from it.”

More than ten inches of rain fell North and Northeast of Tallahassee, Florida, in Bradfordville and near Wadesboro, The Weather Channel added, with nearly 11 inches of rain reported at one location near Micanopy (south of Gainesville) Tuesday early morning. As of Monday, Gainesville reported its second wettest June day on record with 5.65 inches of rain.

Tuesday morning experienced some flooding in Tampa as well.

MT @NWSTampaBay: Center of Tropical Storm #Colin seen on radar at 1030 PM EDT spinning over E Apalachee Bay #flwx pic.twitter.com/dESpgJGg2o

— AccuWeather.com (@breakingweather) June 7, 2016

“We won't have much else to report until we're back in the fields to assess everything, but naturally we hope for the best in these situations,” Frank adds.

Florida's Gulf Coast Monday was subject to storm surge flooding which inundated low-lying areas. Stay tuned as we follow the effects of Tropical Storm Colin.

Procacci Brothers

SALINAS, CA – Forbes Media has announced the date of its second annual AgTech Summit in Salinas Valley. The invitation-only event will run from July 13-14, 2016. The summit will feature entrepreneurs from Silicon Valley and generate productive debate within the community on critical issues in the industry. 

One of the pioneers and the forefront of Salinas innovation is Bruce Taylor, who will be speaking at this year's event. Additionally, the event will showcase the latest and greatest innovations for farmers, investors, and stakeholders of the global agricultural ecosystem. 

"This summit is a fantastic opportunity for the AgTech community to discuss real solutions in accelerating new technologies and capabilities in farming,” said Bruce Taylor, Chairman and CEO of Taylor Farms. “We are currently in trials with eight of the participating companies we met during last year’s Forbes AgTech Summit.” 

According to a press release, the first day of the event will provide tours for attendees of the following facilities:

• Field demos at Hartnell College’s Alisal campus
• Plant tours of Mann Packing
• Plant tours of Taylor Farms
• Tour of Tanimura & Antles’ farmworker housing complex, Spreckles Crossing

The Innovation Showcase will again be held under the Main Street Salinas white tents, where over 35 innovative AgTech startups will focus on solutions to result in higher crop yields and less food waste. These showcases will include the following presenters, amongst others:

• Acuity Agriculture
• Agribody Technologies
• American AgCredit
• Blue River Technology
• Edyn
• Food-Origins
• GeoVisual Analytics
• Iteris
• MagGrow
• SoliCulture
• SpecRight
• Trace Genomics

The second day of the event will feature full-day Plenary Sessions on Main Street to focus on topics such as food security, the microbe revolution, ag labor, and water use. Moderated discussions will occur between start-ups and their investment backers, such as Mark Johnson of Descartes Labs with Ron Meeusen from Cultivian Sandbox, and Dan Harbaug of Soft Robotics with Bruce Taylor of Taylor Farms.

“We are convening over 500 of agriculture’s leading voices to debate, discuss, and showcase innovative solutions to the most daunting challenges facing global agriculture,” said Paul Noglows, Executive Producer of the Forbes AgTech Summit. “We can think of no better place to do that than historic Main Street Salinas where the Salinas and Silicon Valley’s meet.” 

Other speakers to participate in the event are listed below:

• Julie Borlaug, Borlaug Institute for International Agriculture, Texas A&M
• Nathan Dorn, Food-Origins
• Suren Dutia, Kauffman Foundation
• Robert T. Fraley, Ph.D., Monsanto
• Dan Harburg, Soft Robotics
• John Hartnett, SVG Partners
• Jorge Heraud, Blue River Technology Inc.
• Dan Hodgson, FarmQA, Inc & Linn Grove Ventures
• Sumer Johal, Agralogics
• Mark Johnson, Descartes Labs
• Willard Lewallen, Ph.D., Hartnell Community College
• Mike Macrie, Land O’Lakes, Inc.
• Teresa Matsui, Matsui Nursery
• Ron Meeusen, Ph.D., Cultivian Sandbox
• Sara Menker, Gro Intelligence Inc.
• Tom Nassif, Western Growers
• Thomas Schäfer, Novozymes
• Bruce Taylor, Taylor Farms
• Kip Tom, Tom Farms
• Tri Tran, Munchery
• Rob Trice, The Mixing Bowl Hub & Better Food Ventures
• Bob Whitaker, Ph.D., Produce Marketing Association
• Patrick Zelaya, HeavyConnect

Forbes Media noted that the founding partner of the summit is SVG Partners and its Thrive Accelerator. Other presenting sponsors include Western Growers, and the City of Salinas. 

An expanded list of supporting sponsors for the event, as well as more information for the event at large, can be seen here. Follow the conversation surrounding the summit by keeping an eye on #ForbesAgTech.

Forbes Media Taylor Farms Western Growers