CALEXICO, CA - Drug smuggling is not limited to just mango and banana shipments, it seems. Early this week, onions and shallots got in the game, as U.S. Customs and Border Protection (CBP) officers at the Calexico East commercial facility discovered almost 2,500 pounds of marijuana concealed in the roof of a commercial trailer carrying the products. 

​“Calexico CBP officers processed hundreds of commercial shipments that day and identified that this conveyance needed a more intensive inspection,” shared Port Director at Calexico, David Salazar. “As a result, the officers stopped more than a ton of marijuana from entering our community, and prevented one million dollars in potential profit from reaching criminal organizations.” 

This pungent incident took place midday on June 6, as CBP officers encountered a 2009 International tractor-trailer carrying a shipment of onions and shallots. Officers referred the commercial truck to the port’s inspection dock for a more in-depth examination, and subsequently with a CBP human-narcotics detector dog, officers discovered 232 wrapped bundles that field-tested positive as marijuana.

According to a press release, the confiscated marijuana is valued at approximately $1 million. 

CBP seized the marijuana, the truck, and trailer after making the discovery. The driver, a 28-year-old male Mexican citizen and resident of Mexicali in Baja California, was turned over to the custody of Homeland Security Investigation agents for further processing.

Well, that's one way to hide the smell, I suppose. As more dastardly criminals get caught trying to compromise the sanctity of fresh produce, be sure that AndNowUKnow will keep you apprised on the latest.

U.S. Customs and Border Protection

CALIFORNIA – In the face of the often turbulent conversations circling the state’s state of water restrictions, California has released information that shows the state reduced its water use by 26 percent in April when compared to 2013 numbers, even with the easing of the drought.

“Californians continue to demonstrate that they are serious about water conservation, which is fabulous,” said State Water Resources Control Board Chair Felicia Marcus in a statement, according to the Sacramento Bee. “We will be watching closely to make sure that water agencies continue to prioritize the conservation habits their customers have adopted.” 

Although these reductions came before the state’s recent overturn on mandatory usage cuts, the Sacramento Bee noted that the numbers still came during a relatively dry April month for the state. Sacramento received about 1.5 inches of rain during the month, with southern regions like L.A. receiving about 0.3 inches. 

During April, water savings ranged from 23 percent to around 33 percent across the south coast, with the Sacramento River watershed cutting its use by 31 percent, when compared to numbers reported just two years ago. 

As we recently reported, state authorities overturned California’s previously mandatory 25 percent water reductions last month. Having gone into effect on June 1st, local authorities and regions are now able to set their own standards of water use and conversation. Like the previous mandate, agriculture will be held to different standards of water use than citizens. 

Although the state is by no means out of the drought, this presents an interesting update to concerns voiced during discussions on the lifting of the mandatory restrictions. AndNowUKnow will provide the latest as California, its citizens, and agricultural communities within the state continues to navigate water use.

California State Water Resources Control Board

RIO RICO, AZ and MCALLEN, TX – With the goal of bringing more value to the retailer and making the watermelon category a destination within the fresh produce department, SunFed has introduced a new, high-graphic, uniquely designed, Perfect Melons™ bin. SunFed is currently shipping the category with the heaviest production centered in the spring and summer months from Mexico’s fertile growing regions.

“The goal of this new bin is to catch the consumer’s attention and drive more traffic into the produce department, and increase the ring at the register for our retail partners,” Craig Slate, Vice President of Sales, SunFed, said. “Along with the eye-catching concept of the bin, we are offering specialized stickers that say 'Hello, I am perfect,' to further create brand awareness among consumers and liven up the melon category.”

Quality and flavor have been excellent, according to a press release, with promotable volumes to respond to the growing demand of watermelons throughout the summer. The recent launch of the bins in U.S. and Canada, has prompted a host of positive feedback from both consumers and retailers as the program ramps up.

Brett Burdsal, VP of Marketing, adds, “Our goal is to give more value to the retailer by creating a more exciting watermelon program, while also expanding our category penetration. We do not view our watermelons as simple ‘commodities.’ The care that we put into our crops, and the processes we put into place, have allowed us to offer a more select and quality product.”

Inspired by the work of graphic designer and award winning filmmaker Saul Bass, SunFed’s new Perfect Melons™ bin presents a picnic-themed motif that draws from Bass’ unique style.

“This artwork specifically draws from Bass’ novel Henri’s Walk to Paris which is the story of a young boy who lives in France and decides to pack a lunch and head for Paris,” Burdsal stated. “Since the point-of-view is that of a child, the characters are not represented in full-body illustrations, but rather a waist-to-toe depiction as a child would see. As you can see in these bins, the figures are half represented, which I believe allows the consumers to insert themselves into the story, see what they want to see, while creating their own relationship to the product.”

Check out SunFed’s Perfect Produce® program and new bins at United Fresh 2016 booth #1840 in Chicago, Illinois.

SunFed

WENATCHEE, WA - As Stemilt Growers continues its tradition of produce department innovation, the family-owned company is introducing its new bi-colored cherry, Skylar Rae®, this month—the sweetest and firmest cherry that Stemilt grows. 

At Brix levels ranging from 23-25 on average, and off-the-charts firmness, this new plant cultivar with unique DNA and unknown parentage was discovered growing by chance in a Wenatchee, WA, orchard back in 2004. Called Tip Top in the orchard and marketed under the brand name Skylar Rae®, it is the first cherry in years to be given its own product price look-up (PLU) number by the International Federation for Produce Standards. It joins dark-sweet and Rainier cherries as the cherry category’s third SKU.

“Skylar Rae® cherries are not only a distinct cherry variety, but they also have a distinct and very impressive flavor,” said Stemilt’s Marketing Director Roger Pepperl. “They’ll crunch when you bite into one, and then you experience a rush of sugars and juice. It’s an entirely new dessert eating experience for cherries.” 

Stemilt is the exclusive marketer of Skylar Rae® cherries in North America, according to a press release, and by 2020 the company expects its Skylar Rae® volumes to rival its current Rainier tonnage. Typically harvested in June and early July, Stemilt said it has been planting the variety extensively in its cherry orchards across central Washington.  

“This year’s crop of Skylar Rae® cherries is fantastic and going to leave consumers who are lucky enough to try them excited for larger volumes coming in the future,” added Pepperl. “At Stemilt, we are excited about adding Skylar Rae® as another premium offering to our industry leading cherry program.” 

Stemilt packs Skylar Rae® cherries in random-weight pouch bags and a new, dome-style 1 lb. clamshell, both of which distinguish the variety as special at the point-of-purchase and entice consumers with the tagline “the sweetest cherry you’ll ever eat.” The company also has stand-up displays for Skylar Rae, ideal for placement in checkout lanes to grab impulse purchasing. 

“Merchandising is key when it comes to a new product like Skylar Rae cherries,” Pepperl goes on. “Cherries are an impulse purchase, and packaging, displays, and signage must be used to call attention to them and drive sales with your shoppers. Sharing Skylar Rae® on digital and social channels is another great way to tell consumers about this new cherry.”

Skylar Rae® cherries also come with a beautiful story, with the variety being named after the memory of Kim and Troy Toftness’ daughter, Skylar Rae Toftness. 

As told by Stemilt, “Shortly after her passing in 2004, the family was working at their Tip Top Orchards in Wenatchee, WA, one rainy day when they saw a rainbow fill the sky. For them, this rainbow was a symbol that Skylar Rae was still, and always would be, with them. Not long after, Troy Toftness discovered a tree in his orchard producing a unique looking – and tasting – cherry. He considered cutting it down as chance discoveries like these rarely produce commercially viable fruit, but refrained.”

Now, a decade later, Skylar Rae® cherries are finally entering the market.

“Skylar Rae® is a special cherry with a special story, and Stemilt is thrilled to be the one that gets to share it with consumers,” said Pepperl.

For more information about Skylar Rae cherries, visit www.SkylarRaeCherries.com.

Stemilt Growers

MILLEN, GA – With a theme of History, Heroes, and Hospitality, the Southeast Produce Council (SEPC) has announced that registration is now open for the Southern Innovations Symposium at this year’s event from September 29 – October 1.

“We’ve been working hard to ensure this year’s Southern Innovations Symposium build upon the success of last year,” stated David Sherrod, Executive Director of the SEPC. “This year’s event has a strong educational focus in one of the most historic locations in the southeast, and is an event you don’t want to miss.” 

One highlight of the event will be The Future of Food, an educational workshop by Richard Worzel. As a global futurist, Worzel has penned hundreds of articles on the futuristic topics, including five best-selling books. Worzel has a background in computer science, economics, and world trade, and has run his own consulting firm since 1979 to help clients prepare for the future; including brands such as Coca-Cola, and Lexus. 

Chris Fussell will also be featured at the event by leading the general session luncheon with a discussion on CrossLead Immersive Leadership Events. SEPC noted that Fussell is a 15-year former Navy SEAL officer, and currently the managing partner and Chief Growth Officer of McChrystal Group consulting firm. Fussell also maintains expertise and knowledge within large organizations of cross-functional collaborations. 

Over its three-day span, as detailed in a press release, the event will focus on other networking opportunities through activities such as the following:

• Luncheons, dinners, and receptions
• Founders Memorial Golf Classic
• Fishing trip and historic Williamsburg tour and lunch 

SEPC will also showcase the Bright Ideas Platform to emphasize new products and innovations in an intimate environment formed of retailers, foodservice, trade press, and suppliers. Applications for participation close by June 15.

The Southern Innovations Symposium will be hosted at the Kingsmill Resort in Williamsburg, VA, for SEPC members.

Stay with AndNowUKnow as we continue to report on this and other upcoming events in the industry.

Southeastern Produce Council

CLEVELAND, OH - An overturned semi left quite a tomato clean-up on Cleveland’s aisle 71 yesterday morning, having rolled and blocked a key ramp around 4 a.m., June 8th.

The cause of the major spill was not reported, and though EMS was called to the scene, no injuries seem to have been connected to the accident, according to Cleveland 19. Except for the veggies themselves, of course.

According to Fox 8 Cleveland, a mix of other vegetables were involved in the mess, but from the images and reports, the majority of the transport was tomatoes. For whatever reason, the truck rolled and spilled all its produce onto the ramp.

A back-up in traffic wasn’t the only result, with a few channels putting some good use to those tomato emojis. As can be expected, spinoff jokes in social media were amongst the reports.

The spill left tons of tomatoes spilled across the Interstate 90 eastbound ramp to Interstate 71/State Route 176, necessitating hours of work and cleanup before it could reopen.

Drivers were detoured to I-490 eastbound as an alternate route while the situation was handled, helping to mitigate delays. Workers cleaned tomatoes up and worked to get the truck upright through the morning rush hour, successfully getting the ramp reopened around lunch.

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