CINCINNATI, OH - As you can tell from the array of recent headlines, Kroger is all about growth these days. How much growth? It looks like more than $4 billion worth, for everything from new stores, expanded locations, and renovations, to revamped tech and logistics. 

Kroger officials said it's all part of a long-range plan to keep increasing the investment in their stores, according to a report from Cincinnati.com. Kroger revealed in its most recent financial report that it upped its capital expenditure budget by 24 to 33 percent, aiming to hit between $4.1 billion and $4.4 billion. The projections do not even include possible acquisitions, which Kroger has been known to frequently venture into.

In his annual letter to shareholders last week, Kroger CEO Rodney McMullen explained that a critical part of his strategy for success is adding or expanding stores within the company's current 35-state footprint. 

"These are markets where we already operate, yet offer a significant opportunity to grow the business," McMullen wrote. ”We continue to expand our presence in fill-in markets across the country."

In the past year, Kroger has announced the following huge growth investments: 

• $250 million in the Nashville market
• $180 million in the Michigan market
• $260 million investment plan in Phoenix for Kroger’s Fry’s Subsidiary
• $465 million investment in Indianapolis 
• $1.2 billion over the next three years in Dallas and Houston

Kroger also recently announced it is growing its work base by 14,000 new workers. 

McMullen continued in his shareholder letter by explaining that the retail industry puts too much emphasis on “splashy tech innovations” and corporate takeovers, when they should be focusing on investment in existing stores.

"Too many companies over-focus on innovation in the hopes of discovering the next 'big thing,'" McMullen wrote, according to Cincinnati.com. "Important to our success with mergers is that we don't need them to meet our long-term earnings per diluted share growth target... Balance – the integration of these strategic elements across our business – is how we'll continue to win with customers." 

So what will this fill-in strategy entail? Late last year, McMullen hinted to Wall Street analysts that the company had identified eight markets where it would concentrate its growth. Those eight markets have yet to be revealed, but AndNowUKnow will keep our eyes out for the latest.

Kroger

CALIFORNIA and WASHINGTON- California’s cherry season is winding down for most, and the industry is looking to the Pacific Northwest for its abundant cherry harvest to carry us into the summer. With the demand for cherries continuing to rise, Grower Direct’s Director of Marketing, Daniel Moznett, joins me to discuss the outlook as the company moves toward Washington.

“Volume from California will continue to be tight but steady as we wrap up the California Bing deal this week. The optical sorting technology that is used at OG Packing for our Grower Direct program has produced excellent results,” Daniel tells me. “Moving ahead, we are looking forward to a promising season from our Northwest program at Western Sweet Cherry Group.”

Grower Direct’s orchards are in the Tri-Cities, Pasco, and Yakima areas and will be good producers for the company this season Grower Direct will start with Chelan and move on through Tieton, Bing, Skeena, Lapin, and Sweetheart varieties for red cherries. The companies Rainier program features the Early Robin, the most popular of Grower Direct’s whites, followed by Rainiers. 

I asked Daniel how volumes look compared to last year and he tells me that the company will start with good volume beginning this weekend and will climb steadily through July.

Grower Direct has been shipping, and working closely, with its packinghouse OG Packing in California, Western Sweet Cherry Group in Washington and its growers to bring the best possible fruit to the market, Daniel notes.

“We had seen a higher than normal amount of weather events through the season and it had been a struggle to consistently deliver the volume,” Daniel says. “But as I mentioned before, with the advancement in our Cherry Vision 2 Technology, we were able to deliver a consistent pack with very low rate of issues upon arrival at retail.”

Grower Direct has been working very closely with retailers across the country and importers around the world to manage the California season and the upcoming Northwest season.

“We are positioned well to rebound through the Washington season,” he adds.

With Washington cherries upon us, stay tuned to AndNowUKnow as we keep you updated on market, weather, and crop conditions.

Grower Direct Marketing O-G Packing

LOS ANGELES, CA - Pioneer in culinary artistry and innovation, Thomas Keller, renowned chef and proprietor of The Thomas Keller Restaurant Group, is being honored with the TORCH Award during the upcoming Western Foodservice & Hospitality Expo.

"Thomas Keller was chosen to receive the Torch Award for the purity of his knowledge, the clarity of his vision, and the brilliance of his career- all qualities we look for when selecting an outstanding chef for this award," said Certified Master Chef Ferdinand Metz, Chairman of the Ferdinand Metz Foodservice Forum, and former President of the Culinary Institute of America. "We are thrilled to present Thomas with this illustrious award to recognize his commitment to elevating cooking in America."

With three-star Michelin rated restaurants The French Laundry and Per Se under his belt, Keller will accept the award during the August 28th - 30th event at the Los Angeles Convention Center. Master Chef Metz will be presenting this award at the event. The French Laundry and Per Se have earned additional awards and recognitions as well, including the 5-Star Award from Forbes Travel Guide, Wine Spectator's Grand Awardand The Daily Meal's Best Restaurants in America.

According to a press release, the TORCH Award, “recognizes an individual or group of Chefs or Restaurateurs whose achievements have enhanced and brought innovation to the restaurant and foodservice profession.”

Keller’s accolades and accomplishments include him being recognized as the first American male chef to be designated a Chevalier of the French Legion of Honor, the highest decoration in France. He was also named "Chef of the Year" by The Culinary Institute of America in 2007 and "Outstanding Chef" and "Outstanding Restaurateur" by the James Beard Foundation.

"On behalf of the Western Foodservice & Hospitality Expo and Ferdinand Metz Foodservice Forum, we are excited and honored to present the Torch Award to Thomas Keller," said Ron Mathews, Vice President for the Urban Expositions Family of Foodservice Events. "Chef Keller's commitment to delivering the best food and experience to his customers continues to drive the industry forward and we are thrilled to be able to recognize his career and achievements."

Keller’s culinary career began at a young age, working at a restaurant in Palm Beach. He moved to France in 1983, where he worked in multiple Michelin-starred restaurants that included Guy Savoy and Taillevent.

In 1986, Keller opened his first restaurant in New York City called Rakel. He then made the move to Los Angeles where he became the Executive Chef at the Checkers Hotel. Keller took ownership of The French Laundry restaurant in Yountville, California, in 1994, and opened Per Se in 2004 in Manhattan.

He has additionally opened Bouchon, Bar Bouchon, Bouchon Bakery, and Ad Hoc + Addendum. Keller as sold more than one million copies of his books "Ad Hoc at Home," "Bouchon Bakery," "The French Laundry," "Bouchon," and "Under Pressure." 

The Thomas Keller Restaurant Group  Western Foodservice & Hospitality Expo

SALINAS, CA - From farm all the way to fork, the Monterey County Sustainability Working Group (MCSWG) is set on its mission to help reduce the amount of food and resources that get wasted. In its upcoming meeting this Thursday, May 26, MCSWG will host Author and Staff Scientist at the Natural Resources Defense Council (NRDC), Dana Gunders, who will speak on her work on reducing food waste and how it can be applied to the produce industry.

“I see the increased attention to food waste as an opportunity for the specialty crop sector, in particular,” Dana tells me when I ask her about why this is an important topic for the produce industry to address. “There's a huge amount of interest in capturing produce that is currently going to waste and getting it to people, whether that means new tax credits for farmers donating food, or new markets for off grade products.” 

From 11:30 AM to 1:30 PM this Thursday, Dana will join representatives from Dole, California Giant Berry Farm, and Growers Express, as well as GSA’s President, President of Monterey County Food Bank, and county officials. Due to high demand, the meeting has been moved from a smaller venue to Giorgio’s at 201 Main Street, in Salinas, CA.

According to a press release, Dana leads NRDC’s work on reducing food waste and has authored the widely distributed report, “Wasted: How America is Losing Up to 40% of Its Food from Farm to Fork to Landfill”. She also co-authored a report called, “The Dating Game,” which focuses on how unclear food dates can lead to increase food waste in the United States. Dana’s book, "Waste Free Kitchen Handbook," was released in September 2015, and she sits on the steering committee for ReFed, a collaboration of over 30 business, nonprofit, foundation, and government leaders committed to reducing United States food waste in the United States.

Her work on food waste has been featured on the following news sources, among many more: 

• CNN
• NBC
• The New York Times
• Wall Street Journal
• NPR 

The meeting’s full agenda includes: 

11:30 AM to 12:00 PM

• Welcome and Introductions (Names, Position, Company)
• Sign In, Lunch, Networking Opportunity

12:00 PM to 1:30 PM  

• Food Waste Presentation /Group Conversation
• Overview of ReFED
• Review of 2012 NRDC Study "Wasted: How America Is Losing Up to 40 Percent of Its Food from Farm to Fork to Landfill"
• Food Loss On Farm/Processing Metrics
• Why it is important to start addressing this issue and working TOGETHER as an industry to find solutions and help combat food waste.

To attend, please RSVP to either Nikki Rodoni at [email protected], or Kris Gavin at [email protected].

DAVIS, CA - Engage3, bringer of a cross-industry platform that looks to address several challenges plaguing the Consumer Packaged Goods (CPG) industry, has announced a new investor.

Folsom-based Moneta Ventures, a leading technology venture firm in California’s capital region, will be leading the investment of Engage3’s Series B round of financing.

“We are thrilled to receive this investment from Moneta Ventures,” Ken Ouimet, Engage3 CEO, said in a press release. “The Moneta team has a history of founding and scaling companies to hundreds of millions of dollars in revenue, is the leading venture group in the region, and has a proven hands-on approach of working with their portfolio companies as they reach their growth stage.”

Current investors include two leaders among the U.S. consumer media market, The McClatchy Company and Swift Communications.

The company plans to use this capital to ramp revenue growth from its competitive intelligence platform, and to accelerate the implementation of its personalized promotions platform.

“Engage3’s management team has a great record in the retail space. Their demonstrated domain expertise combined with current customer traction, the technology platform they have already built, and the product roadmap makes a very compelling investment thesis,” Lokesh Sikaria, Managing Partner of Moneta Ventures, said. “Engage3 is well established in the ecosystem and has partners poised to change the way consumer goods are bought and sold. We are happy to lead this round of investment and to work with the team to raise additional investment.”

In CPG alone, $1 trillion is spent globally on consumer and trade promotions, according to Engage3, but most fail or break even.

The company brings over 40 years’ worth of product and pricing data to help maximize margins and set competitive market prices for CPG companies, incorporating:

• Digital assistants
• Predictive analytics
• Market intelligence cloud

A study by Arizona State University found that Engage3 is able to return a 5x improvement over traditional mass promotions, leveraging the combination of data science, digital assistants, and competitive intelligence.

The platform, which could influence $3.7 trillion of retail spending in the U.S. alone, will be utilized through consumer media companies, directly through retailers’ loyalty and customer relationship management programs.

Engage3

ROCKVILLE, MD - Residents and influencers in Pentagon City will soon have access to a brand new 36,800-square-foot Whole Foods.

Opening on Wednesday, June 29th, the retailer’s ninth Northern Virginia store is in close proximity to the political hub of the U.S., just a ten minute stroll from the Pentagon.

“Our newest Whole Foods Market will reflect the energy and vitality of this growing Arlington community,” Mike Ameg, the store’s Team Leader, said in a press release. “This store will offer Northern Virginia families the highest quality natural and organic products, including seasonal, locally-sourced produce, sustainable seafood and high-quality meat and poultry – all free of artificial flavors, colors, sweeteners, preservatives and hydrogenated oils. We’re also excited to bring an extensive offering of fast-casual dining options to the many residents who live and work in the heart of Pentagon City.”

In addition to an expansive organic salad bar, the retailer announced that the store will also feature:

• Prepared foods hot bars pioneered by Whole Foods Market chefs
• Made-in-house and artisan charcuterie
• An extensive selection of beer, wine and cheese
• A scratch bakery
• A coffee/juice bar
• A pub
• A dog-friendly patio

The wide array of food and seating, Whole Foods said, are sure to become popular meeting areas. Looking at all the fresh and organic offerings, will this be the hub of food and legal discussion alike?

The chain will also be holding events in the coming weeks as it prepares to open, with both part-time and full-time team member positions available across a variety of departments.

Keep checking in with AndNowUKnow as we continue to measure the pulse of the retail and other markets influencing fresh produce.

Whole Foods

KYUSHU, JAPAN – So you think you’ve got an affinity for succulent strawberries, huh? But would you pay ten dollars for a single berry? 

Japanese consumers are willing to do so, in seeking an exclusive variety that boasts a luminescent white color and large size of near-to 50 grams, as reported by John Daub of the web series Only in Japan. The rare strawberry is known as the Shirou Houseki variety, or White Jewel, and sold for 1080 yen each.

Cultivated by a single grower from the Saga precinct, Tejima-San cross-breeds between varieties to produce the White Jewel, and limits their exposure to sunlight. Adding to the rariety of the final variety, only ten percent of all the White Jewels grown will stay white after being exposed to the sun, despite all containing less anthocyanin than standard strawberries. 

Once the small percentage of milky white berries is effectively grown to size and, one could say, lack of color, they are then packaged individually in a plush, covered setting like an expensive set of earrings. Daub noted that in Japanese culture, the White Jewels are intended for purchase as a swanky gift, instead of a simple, sweetened snack.

Daub sampled the berries for himself, and said that they were sugary strawberry, almost like candy, with a “hint of pineapple to it." To learn more about the White Jewel white strawberry, and other renowned Japanaese varieties, watch the video above. 

Japan is no stranger to growing extraordinary fruits at exorbitant prices, but the question still remains if we will ever see such success in American markets to sample $10 berries of our own.

CORAL GABLES, FL – Judged on a blind basis by a panel of judges, Del Monte Fresh Produce, N.A., Inc. has announced that its Del Monte® Fresh Guac has been awarded the Superior Taste Award by the International Taste and Quality Institute (iTQi). 

“We are honored that our Del Monte Fresh Guac have been recognized with the Superior Taste Award,” said Dennis Christou, Vice President of Marketing, North America. “Our guac is enjoyed by consumers throughout North America and the Middle East, and loved for its exceptional, creamy taste.”

The flavors which were included in the award were the Pico De Gallo, Classic, and Spicy, as stated by the company in a recent press release. The blind panel judged each product based on the following features:

• Overall taste
• Visual appeal
• Smell
• Texture
• Flavor
• Olfacation
• After-taste 

The iTQi convenes annually in Brussels to test food and beverage products from around the world, as comprised as a panel of judges European culinary institutions. Only products which receive a mark superior to 70 percent are granted a Superior Taste Award of one to three gold stars, as based on merit.

Del Monte stated that its Fresh Guacs are preservative free, and ready-to-eat in convenient packaging. The guacuamole lines feature fresh vegetables, Hass avocados, and salt to taste. The company stated that it’s Fresh Guacs are a great addition to any retailer’s fresh produce and deli sections.

“We are excited to now offer avocados in a value-added format for consumers who enjoy the benefits of convenience and don’t want to sacrifice the fresh taste,” finished Christou. “As more and more consumers become aware of its great taste and nutritional value, Del Monte will continue to bring innovative solutions to the avocado category that meet changing needs and preferences.” 

The company noted that its other items to receive a Superior Taste Award includes its fresh cut Del Monte Gold® Extra Sweet Pineapple, Del Monte® Fresh Hass Avocado Pulp and Del Monte® melon.

Del Monte Fresh Produce

SUNBURY, PA - Weis Markets is acquiring five Mars Super Markets grocery stores, more than doubling the retailer’s footprint in Baltimore County. While the sale price was not disclosed, it's expected to close in late July, with the properties converting to Weis stores in August.

Rosedale-based Mars, a family-owned independent grocer founded in 1943, currently runs 13 Baltimore-area stores, but has yet to announce plans for its remaining eight locations.

According to the Baltimore Sun, Weis’ Chief Operating Officer, Kurt Schertle said the five stores being added to the company repertoire are well-run and successful, making it a sensible purchase for the also family-owned independent chain.

Weis, which first entered Maryland with a Hagerstown store in 1967, has been known to expand methodically through acquisitions in Maryland. "We've been working on growing our footprint in Maryland, and specifically the Baltimore region, for years now, and we've always been an admirer of Mars," Schertle added. "They run a nice, local business. We thought for a while it would be a good opportunity. It turned out this happened to be the right time."

Chris D'Anna, Mars’ Chairman and CEO also shared Schertle’s sentiments in his own statement, saying, ”As a family-owned business, we recognize Weis Markets as a company with a similar commitment to its communities, customers, and associates. This was an extremely important consideration in our decision."

At the five stores to be sold, Mars currently employs 400 workers, both full-time and part-time. According to the Baltimore Sun, Weis officials visited the Mars stores on Tuesday to schedule interviews to potentially rehire those workers.

Weis Markets

CHICAGO, IL – Following recent company growth, D’Arrigo Bros. of New York, Inc., has announced that the company has transitioned to Produce Pro Software’s ERP software solutions in March of this past year.

“We looked at several different software systems over a period of time,” stated Kevin D’Arrigo, of D'Arrigo Bros. of New York. “What truly sets Produce Pro Software apart was that it is built specifically for the produce industry. With perishable items you need to move quickly and accurately, and this system supports us in that endeavor.”

D’Arrigo Bros. of New York stated in a recent press release that this choice in software solutions came from a need for a long-term solution for the continued growth of the company. 

“With every customer we view the relationship as a long-term business partnership. We look forward to supporting D’Arrigo Bros. of New York for many years to come,” commented Dave Donat, Produce Pro President. 

Utilizing the new software, D’Arrigo Bros. of New York noted the following software features inherent in Produce Pro Software’s ERP:

• Real-time inventory management and traceability
• Mobile applications
• Price, sales order entry, and e-commerce

“Their reputation absolutely preceded themselves and for good reason. The team at Produce Pro is efficient, innovative and personable,” continued D’Arrigo. “Their employees truly engrain themselves in your operation to make sure they have a full understanding how unique the client is.” 

The company said that the industry specific software system will allow it to continue to supply high-quality products to its customers, and expects Produce Pro to help them take business operations to the next level.

“In the short period of time since we went live with Produce Pro, operations have steadily improved which in turn has made everyone’s job easier. Not to mention, the traceability aspects of the system have provided a lot more clarity internally,” finished D’Arrigo.

Make sure to click on AndNowUKnow as we provide you with the latest in software solutions, and industry partnerships.

D'Arrigo Bros. of New York Produce Pro Software