ZAANDAM, THE NETHERLANDS - A strong Q1 2016 financial report is bringing Ahold even closer to its impending merger with Delhaize, beating analysts expectations for income by almost $16 million. Ahold CEO Dick Boer says this news puts them right on track to complete the merger by the middle of this year.

“We continue to make good progress on our proposed merger with Delhaize, which we expect to complete in mid-2016,” shared Boer. “Working together towards this common goal reaffirms our view that the merger will create a better and more innovative retailer, capable of delivering enhanced value for our customers, associates, and shareholders.” 

Ahold estimates that when the merger is complete, an approximate $1.11 billion (€1.0 billion) return will go back to Ahold shareholders through both capital return and a reverse stock split. Current Ahold shareholders will, directly or indirectly, hold approximately 61%, while former Delhaize shareholders will, directly or indirectly, hold approximately 39% of the outstanding ordinary shares in the combined company.

As far as this ending quarter goes, adjusted operating income increased 14.7% to $500.6 million (€449 million), beating the $485.2 million (€434 million) average prediction that Bloomberg analysts revealed in a poll. Net sales reached $13.19 billion (€11.8 billion), which the company says was driven by solid store operations, a strong increase in online sales, improved profitability, and a strong free cash flow.

“We continue to deliver on our strategic objectives, with a good operational and financial performance in the first quarter,” Boer continued. “Our focus remains on serving our customers and delivering on our Simplicity program, in order to invest in our great local brands to ensure that we provide even more value and innovation.”

Other highlights from Ahold's Q1 2016 financial report include: 

• Continued strong online sales growth, with net consumer sales up 27.4% at constant exchange rates
• Underlying operating margin of 3.8% (Q1 2015: 3.5%)
• 15.1% increase in Group underlying operating income (up 14.7% at constant exchange rates)
• Strong free cash flow of €287 million (Q1 2015: €186 million)
• Simplicity program and continued cost control driving improved profitability 

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As of 5:36 PM GMT, Ahold shares were up 2.5% in Amsterdam trading to reach $22.78 (€20.37), raising its market cap to $18.56 billion (€16.6 billion). Delhaize shares also rose 2% in Brussels, reaching to trade at $107.42 (€96.12) for a market cap of $11.01 billion (€9.85 billion).

As we reach closer to mid-2016, when Ahold and Delhaize say their merger will be complete, count on continued coverage from AndNowUKnow.

Ahold

WASHINGTON, DC – The U.S. Department of Agriculture (USDA) has cited Old Fashion Honey Corp., doing business as U.S. Food Logistics, Delray Beach, FL, for failure to pay for produce.

The company failed to pay $1,239,751 to five sellers for 30 lots of produce, according to a recent USDA press release. This is in violation of the Perishable Agricultural Commodities Act (PACA). As a result of these actions, Old Fashion Honey Corp., doing business as U.S. Food Logistics, cannot operate in the produce industry until May 23, 2018, at which time it may reapply for a PACA license.

The company’s principal, Agustin Salinas, may not be employed by or affiliated with any PACA licensee until May 23, 2017, and then only with the posting of a USDA-approved surety bond.

USDA is required to publish the finding that a business has committed willful, repeated, and flagrant violations of PACA as well as impose restrictions against those principals determined to be responsibly connected to the business during the violation period. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.

In the past three years, the USDA resolved approximately 3,700 PACA claims involving more than $66 million. Its experts also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

Agricultural Marketing Service

YAKIMA, WA - Domex Superfresh Growers® is looking to help consumers and retailers dive into summer as it launches its latest campaign: “Sweeten up Your Summer.”

A photo sweepstakes to spread the cherry love, this is the latest launch from two years of successful social media marketing with the hashtag #EatCherries.

“It is no secret how much consumers love cherries. They are always a great accompaniment to any and all of their summertime activities,” Howard Nager, Vice President of Marketing, said in a press release. “We have found that consumers also enjoy posting photos on social media of their family and friends sharing laughs, great times and enjoying the sweet taste of cherries.”

With the use of #EatCherries as a summer social campaign for the last two cherry seasons via its Instagram, Facebook, Twitter, and consumer blog, Domex reports having garnered more than 50 million consumer impressions.

Domex is currently running Chelans into the second week of June with Bings this week through the balance of the month. Lapins will be available the third week of June into the late July, while Sweethearts will be available through early August, the company notes. Rainiers will peak in June and limited supplies will be available into July. In addition, the company is currently harvesting organic cherries over the next few weeks and will finish mid-July.

“Consumer-focused marketing promotions like our ‘Sweeten up Your Summer Sweepstakes’ help us to create an active online dialogue with our consumers, generating excitement for the cherry category and helping prepare our retail partners for the changing demands of the modern marketplace,” Nager added.

Domex added that it has refreshed its digital social content kit this year with the addition of its new Superfresh™ Cherries video, as well as updated graphics and art for social promotion, pre-written tweets, product photography, and tempting cherry recipes.

As the summer season sets in and, with it, consumer demand for refreshing produce, keep checking in with AndNowUKnow for the latest launches in campaign and marketing.

Domex Superfresh Growers®

MARICOPA, AZ - The weather is not the only thing heating up in Maricopa, Arizona—Santa Rosa Farms is now in full cantaloupe production. 

Santa Rosa is a local family-owned farm that has been farming in the state for over 34 years, and is one of the nation’s leading melon producers and distributors. 

The dedication and experience shows with the beautiful crop of melons the company produces year after year.

The company's number one priority has always been food safety, exemplified by the constant research of the newest technologies they implement in its growing fields and cold storage facility.

The exclusive marketing arm for Santa Rosa Farms is done by Legend Produce, headed by Don Johnston, Tony Fey, and Phillip Cianciolo out of the Kentucky sales office. 

“Unusually warm temperatures are bringing on the melons early this year. This was the earliest harvest date for Santa Rosa ever on May 9, 2016,” says Owner, Cindi Pearson.  

Johnston adds, “This season is by far one of the best years they have seen from the varieties grown. The hot temperatures are helping create the big sizes and sweet flavors of the melons.”

The company's harvesting is being extended later this year as well, due to the water shortage in California. Santa Rosa is hitting peak growing volume now into July, and the company expects to continually to see quality maintained throughout the season.

They are hearing excellent feedback from the retail stores and processors with the quality they are tasting. Johnston continues, “Sales volumes are up this year over last, and we take notice when the customers send us their feedback through their purchases.”

Santa Rosa will have the same super sweet varieties of cantaloupe and honeydew throughout the season, and will continue growing trials of Tuscan melons and mini watermelon, which provide long shelf-life and high brix.

Looking for quality melons? Look for the Santa Rosa label on your store shelves!

Santa Rosa Produce Legend Produce

NEW YORK, NY - From renovations and food safety improvements, to technology advancements and a widening of its customer base, change and growth are a major focus over at D’Arrigo Bros. Co. of New York, Inc. Located in a 100,000-square ft. facility in the Bronx, Gabriela D’Arrigo, Director of Marketing and Buyer for Organic Produce, took the time to explain to me all of the changes happening for the company that has served the New York area and beyond for over half a century.

“We are not a broker, but a full-service wholesaler with a lot of different aspects, pulling from multiple growing regions,” Gabriela explains to me, naming off several regions including the East, Central, and West United States, Canada, and even Israel. “We stretch a lot further than we ever have before, spanning from “mom and pop” restaurants to some chains and QSRs, with a vast range of customers that come through the door.”

So with more than 300 suppliers working with the team, a fleet of 50 trucks, and an established footprint east of the Mississippi, what’s currently in the works for the wholesaler? A lot.

Enhancing its efficiencies in operations and food safety has been a key focus, Gabriela tells me, with renovations to the company’s facility under way. “The facility is city-owned, but we have taken it upon ourselves to say that we want to get this done and be able to continue to compete down the road,” Gabriela says of the company’s investment, adding that it is currently working with AIB during the first level of certification, and will then work with Global Manufacturing Practices (GMP) for the next. Also at the forefront are a widening of its offerings, including more organics, specialty, and value-added products.

“Traditionally there has not been a huge focus on organics here in the Hunts Point Market, but that, along with specialty and value-added products, are things that are really appealing to millennials right now,” Gabriela says.

And another topic appealing to millennials, as well as other generations of consumers, is transparency. To help meet that, as well as to kick up its day-to- day business practices, D’Arrigo Bros. has incorporated Produce Pro’s software, which Gabriela tells me has been a great asset.

“Our previous software we had for years was great, but it was not perishable-specific. Now, we are using a software designed for wholesalers and it has made a difference.”

Now the company can much more easily provide traceability and transparency, both big focal points in the business to the customer and the vendor.

With an expansive offering in fresh fruit and vegetables, D’Arrigo Bros. Co. of New York, Inc. is a full line wholesale produce distribution with plenty in the works and growth on the horizon, which you can see for yourself as early as next month.

“We have been a part of United Fresh for a very long time, and will be attending the conference this year, as well as the upcoming Organic Trade Summit,” Gabriela says.

United Fresh kicks off June 20th in Chicago, Illinois, and with plenty to tell, we are looking forward to seeing D’Arrigo Bros. Co. of New York there!

D’Arrigo Bros. Co. of New York, Inc.

NEW YORK, NY - In a celebration of the independent restaurant owner, and perhaps a celebration of its extremely successful $1 billion IPO last week, US Foods brought five of America’s “hidden culinary gems” to cook up some of the hottest menu items in the country at the first-ever fully functioning outdoor kitchen in front of the New York Stock Exchange (NYSE). On Thursday, May 26th, from 9am to 12pm, the company featured independent restaurant owner/VIP Chefs to bring attention to this under-resourced sector of the $782 billion restaurant industry. 

“55% of America’s restaurants are independently owned, yet more than 60% close within the first year. US Foods wants to shine a spotlight on these local chefs and their impact on the way America eats today,” the company shared in a press release. “Industry group technomic predicts sales at independent restaurants and small chains to grow at 3.2% over the next five years while regional and national chains will grow at only 1.2% and 1.7% respectively, making this group an increasingly vital part of the American food industry.” 

US Foods invited the following five Chefs to cook at the NYSE, according to a press release:

Brian Ellis, The Smith – New York, NY:  

Brian Ellis has served as the first executive chef at the first Smith restaurant since its opening in 2007 in the East Village. The Smith now has 4 locations throughout Manhattan, with each menu featuring a selection of farm-fresh, familiar, and creative bistro dishes. The Smith works closely with local farmers and purveyors to source food from people they know and trust.

Ellis served Toasted Ricotta Gnocchi with White Truffle Cream.

Donna Lee, Brown Bag Seafood – Chicago, IL:  

With a vision for seafood, Donna Lee took it upon herself to bring Chicagoans fresh, quality fish accessibly, quickly, and affordably. Brown Bag Seafood is a fast casual restaurant, or as Lee calls it, a “glorified seafood shack.” Since 2014, the restaurant has been the go-to spot in the Chicago Loop to get reasonably priced seafood that is responsibly sourced, tasty, and healthful.

Lee served Crispy Cod with Summer Corn Slaw.

Kenneth Danko, Devilicious – Temecula, CA: 

For father and son duo Bob and Kenneth Danko, built their empire serving everything from truffle fries to pork belly sliders to duck confit grilled cheese sandwiches all over southern California. Their Devilicious food trucks have been recognized by The Food Network, The Cooking Channel, and recently spurred a brick and mortar restaurant serving the same “food so good it’s bad” in Temecula, CA. 

Dank served a Lobster Roll with Shallot Tarragon Aioli, alongside Devilicious! House Chips. 

Cristy Nolton, Yeah Burger – Atlanta, GA: 

Cristy Nolton and her restaurant, Yeah Burger, take burgers to the next level. Nolton serves up her organic, gluten-free, and eco-friendly fare that has made Yeah Burger one of the "10 Favorite Burger Spots" in America, according to BON APPETIT.

Noton served a Grass Fed Beef Slider, with Fig Jam, Caramelized Onions, and Goat Cheese on a Brioche Roll.

Gaurav “G” Patel’, Eschelon Experiences – Raleigh, NC:  

Only 10 years old when he came to the United States with his family from India, G Patel did not speak any English, but already was growing small crops as child to earn money for school supplies. 21 years later, Patel is a staple in the North Carolina Triangle dining scene, owning six top-ranking Triangle restaurants and employing more than 300 people in the area. 

Patel served Pork Belly Al Pastor, with Smoky Stone Ground Grits, a Guajillo Chili Sauce, and Jicama Chow Chow.

Also served at the event was a vegetarian option, Pickled Superfood with a spicy sauce, and kale chips.

For more on US Foods and the company’s appreciation of this undervalued sector of the foodservice industry, stay tuned to AndNowUKnow.

US Foods

SOUTH AFRICA - Citrus from South Africa is now in season, and as the program winds up, retailers can look forward to growing resources and initiatives to answer the increasing demand. The group Summer Citrus from South Africa (SCSA) is helping to drive those efforts this year, representing 230 South African citrus growers who consolidate their logistics, marketing, and sales efforts to bring the finest citrus fruit to market during the U.S. summer season.

CEO, Suhanra Conradie, spoke with me recently about this new era in growth for the group, and what we can expect as the summer gets underway.

“Summer Citrus from South Africa is available throughout the entire summer season. Because citrus is such a versatile item that can easily be enjoyed as a healthy and portable snack as well as a great flavor addition to summer grilling, beverages and refreshing desserts, there is no wrong time to promote it!” Suhanra tells me. “Retailers can expect easy peelers to be available as of the end of May, while navel oranges will follow in late June and can plan for promotional periods anytime during the summer months.”

As summer warms up, SCSA is evolving with a group-wide re-brand for expanded marketing efforts in 2016. Part of the brand’s marketing efforts include the launch of a new website this month along with a first-ever digital consumer promotion in July. Expect elevated social media presence and blogger partnerships throughout the summer as well.

With its four main import partners Seald Sweet, DNE, Capespan, and AMC, as well as current retail partners, SCSA is looking to build on its current program with new and continuing customer support.

“We are very fortunate to have such a fantastic group of partners,” Suhanra, says. “We certainly anticipate our customer base continuing to grow with the number of positive sales conversations our team is having.”

So, what has contributed to the increased demand for South African citrus?

Suhanra tells me that consumers are becoming more and more familiar with the fantastic flavor and sweetness of citrus from South Africa and realize the quality of fruit they are purchasing.

“We also fill a critical gap when U.S. citrus is not available. When compared to other summer fruit items, citrus provides an incredible value on a per pound basis. Budget savvy shoppers will be drawn to messaging that helps them shop smarter while still enjoying the peak of season flavor and quality,” she says.

Until this year, the group of citrus growers represented by this new brand was known in the U.S. market as the Western Cape Citrus Producers Forum. As SCSA examined how best to represent its products to a consumer audience and put the group’s best marketing foot forward, SCSA knew it wanted to have a brand that shoppers could connect with and easily understand. 

“Summer Citrus from South Africa was born from a desire to clearly communicate the seasonality and origin of the fruit. In designing the brand, it was important to us to create a logo that was crisp and clean – something that the modern shopper could relate to,” Suhanra adds.

SCSA introduced the new re-brand at Viva Fresh, but will have a much larger presence at United Fresh with a new 10x30 booth. Visit Summer Citrus from South Africa at booth number 1731 next month in Chicago, Illinois.

See you all there!

Summer Citrus From South Africa 

SANTA PAULA, CA - Limoneira is kicking off the month of June with a focus on changing the world of agriculture and the careers it employs as part of its commitment to sustainability.

“From our CEO, Harold Edwards, to our Lemons for Life spokesperson Megan Roosevelt and back again, every member of the Limoneira team is committed to supporting educational efforts in our community and beyond,” the company stated in a press release, commenting that service to the community is a big asepct of sustainability. 

One of the main points the company makes in serving and sustaining its community, is through education and fostering the future of the ag industry, citing that competitiveness in the global economy requires problem solvers, innovators, higher-level thinkers, and strong communicators.

One of the ways the company is working to foster this is by moves like that made by its CEO, Harold Edwards, who was a "Celebrity Reader" for First 5 Ventura County at the ABC preschool in Santa Paula this past May.

“It was a great experience for me, and it was a great experience for the kids,” Harold said on being a part of the Ventura County Star and First Five Ventura County's Read to the Kids campaign.

Likewise, Megan Roosevelt, who in addition to being official spokesperson for Limoneira’s Lemons for Life™ is Founder of Healthy Grocery Girl®, spoke with with Dr. Lisa Kessler, Associate Dean of the College of Agriculture, and talented ag students, Irena Ilic and Jose Bautista on May 20th

“Agriculture is one of the most important industries in the world. However, have you ever stopped to ask yourself where your food comes from?” Roosevelt posed. “When people think of the word “agriculture,” often farming is what comes to mind. However, agriculture consists of over 20 million people in America in 200 different job categories.”

While Limoneira notes that the more obvious careers in ag are directly related to the farm or ranch, only 10 percent of Americans of the 22 million, according to the release.

“Education in the classroom is only the first step, however,” Limoneira said. “Once those graduation caps have been tossed in the air, there is an entire world of careers in the world of agriculture right here in the United States that Limoneira wants to spread the word about.”

Some of the numerous careers in agribusiness can include:

• Agribusiness Management
• Agricultural & Natural Resources Communications
• Building Construction Management
• Agriscience
• Food Science

With a projected boost in job growth over the next five years, the company is practicing sustainability by contributing to its local communities and their education, through events such as educational tours, bringing students of all ages in to share its knowledge in both sustainable practices, and the intricacies of getting lemons to consumers around the globe.

To see more of what Limoneira does to give back to its communities, visit limoneira.com/agribusiness/lemons/community/.

Limoneira

GLENNVILLE, GA - As the Vidalia onion fresh season winds down in Georgia, Delbert Bland, President and Owner of Bland Farms, took the time to tell me about how product and demand have been looking in previous weeks, as well as a bit of what we can expect in the days to come.

“We’ve had a little bit of rain, nothing out of the ordinary, and a fairly decent harvest season,” Delbert explains, adding that Mother Nature has been good to the region this season as far as the usual heat challenges she would bring. “It’s not too hot right now, which is usually a problem right now. That hasn’t been the case this year so it’s been very good for us.”

Demand during the fresh season has been good as well, with Vidalias being grown in specific areas making for a good ratio of supply versus need.

“We’re experiencing a lot of demand because, as things get fresher, we don’t have a lot of areas that compete,” Delbert says, adding that the market is looking steady, but will likely spike as the season moves into storage crops today, June 1st.

“The market is doing fair, it will go up a bit because the charge will go up a bit more due to the cost coming out of storage.”

Delbert still anticipates volumes to stay fair during the storage season, however, adding, “Fresh onions are looking good so it should make for a smooth transition into storage. Overall it’s been a good season.”

Keep checking in with AndNowUKnow as we follow all key categories through 2016 and beyond.

Bland Farms

IDAHO FALLS, ID - Fresh potato company Potandon Produce L.L.C., is making moves to revamp its sales department, appointing a new Director of Sales and a new Foodservice Sales Manager through two in-house promotions.

Former Potandon Senior Sales Manager, J.P. Surerus, has now made the leap to Director of Sales. Bringing over 22 years of potato industry experience, according to a press release, the company says Surerus has a proven track record of leadership and business development. Surerus spent the past five years as a sales manager with Potandon.

The former Foodservice Sales Manager, Stephanie Bench, has been promoted to Director of Foodservice. While her past 10 years have been with Potandon, Bench is bringing over 25 years of industry experience to her new directorial role.

Ralph Schwartz, Vice President of Sales & Marketing for the company, had this to say about the company’s new heads of sales divisions, “Both Stephanie and J.P. have been integral parts of the growth Potandon has experienced and they will be key players in leading the sales department into the future.”

It’s an exciting time to be part of Potandon Produce, and an exciting time to cover it, so continue to tune in to AndNowUKnow for more.

Potandon Produce