STELLARTON, NS – Sobeys Inc. and its parent company, Empire Company Limited, have announced a new agreement with Crombie Real Estate Investment Trust that will allow the companies to sell or lease back several retail properties, distribution center interests, development land, and more, for a total transaction of $418 million.

“This transaction is aligned with our strategic position of providing Crombie REIT preferred access to real estate assets while giving Sobeys access to capital to support our expansion as a leading national retailer,” explained Marc Poulin, President & CEO, of Sobeys in a statement.

According to the companies, the deal includes:

• The sale or lease back of 19 retail properties 
• The sale or lease back of 50 percent interests in three automated distribution centers
• The sale of two parcels of development land for a total of $360 million
• Crombie will invest $58 million in renovations/expansions of ten Sobeys locations

As for the details of the transaction, Crombie has announced it will pay for the deal, in part, by issuing approximately $93.4 million in value of Crombie Limited Partnership Class B units, with attached Crombie special voting units at a price of $14.70 per unit. This is the same price per unit as a Crombie REIT subscription receipt bought-deal public offering that the investment trust announced on the same day as the Sobeys deal. The transaction will maintain Empire’s approximately 41.5 percent equity accounted ownership interest in Crombie, and Sobeys will receive the balance of approximately $324.6 million in cash, which will be used for debt repayment.

As the deal closes, Sobeys will enter into long-term, fully net leases for each property, including the distribution centers and renovated and expanded stores. Sobeys will also provide environmental indemnities on the properties. 

While the transaction is still subject to both regulatory approval, and approval of non-Empire affiliated Crombie unitholders, we can likely expect this to put a substantial dent into Sobeys debt. For more on the latest retail deals and agreements, keep your eyes on AndNowUKnow.

Sobeys

YUMA, AZ & OXNARD, CA - As we move through May and the celery season ramps up, growers are expecting a strong, slightly active market throughout the month as they look to harvest. 

Matt Seeley, VP of Marketing at Foxy Fresh Produce, tells me the company projects celery volumes to remain at the same levels as last year’s domestic crops.

“The organic celery market will continue to be very active, with tight supplies over the next few weeks as Yuma winds down and Oxnard production begins, and then we move to Salinas,” Matt tells me. Conventional celery looks to remain steady for the next few weeks, with moderate supplies and overall good quality. 

In Tanimura & Antle’s growing region, production is about two weeks behind the average start date in Oxnard, CA, according to Commodity Manager Steve Souza. T&A credits the later harvest to unseasonably cool temperatures, but the company still expects a steady volume in comparison to last year’s crop. 

“The first two months of 2016 saw high markets, with below cost markets in the past two months,” Steve tells me of the company’s current celery outlook. “Due to quality issues, the market is climbing steady above breakeven costs.”

For the most part, advises Steve, weather is the major influence on celery supply. 

“The recent weather has shippers harvesting early, making for lighter weights and yields,” finishes Steve. “Weather fluctuations will create peaks and valleys on our volume at times that we are not accustomed to, but quality today is good.” 

As Church Brothers is also currently growing out of Oxnard, CA, and prepares for Salinas, CA, starting in four weeks, Manager of Commodities Jason Lathos tells me that the market has been steady. “Surprisingly, it’s maintained. November through January it ranged from $20 to $45, but since then it has stayed at about $8 to $12,” he says. 

Demand remains steady, Jason says, and despite starting with lower yields from cold weather growers remain confident in this year’s supply. “The problems are gone, quality is looking good now and we’re ready for the season,” finishes Jason.

Stay up to date with AndNowUKnow as we keep an eye to the market and possible weather changes.

Foxy Fresh Produce Tanimura & Antle Church Brothers

NEW ORLEANS, LA - Just two years after its celebrated return, could Chiquita look to be once again leaving its New Orleans home?

Those are the whispers around the docks of the Louisiana ports, according to Matt Gresham, Director of External Affairs for the Port of New Orleans.

"The Board of Commissioners of the Port of New Orleans is aware of Chiquita's potential interest in pursuing other strategic shipping options. The board has received no official notice from Chiquita,” Gresham said in a statement to the Sun Herald late last week.

As we have reported previously, Chiquita returned to New Orleans in 2014 after nearly 40 years, bringing 350 new jobs to the area. Part of the deal included $15 million in incentives from the state and port, according to Bloomberg, as well as an offer of 10 years of subsidies estimated at $1.1 million to $1.5 million a year from the state, based on how much cargo Chiquita handles in New Orleans, and more.

"The board values its relationship with Chiquita and will work with terminal operators, the state of Louisiana, and shipping partners to continue the relationship going forward,” Gresham added. “Port staff and local and state stakeholders consistently seek new services and customers for its terminals to build upon its growing break-bulk and container business.”

It is news that Gulfport hopes means that Chiquita will return to them after 40 years of working together.

"We've been involved with Chiquita since the time that they left," Jonathan Daniels, Executive Director for the Port of Gulfport, told the Sun Herald. "I have not received anything, but we do hope that if they move from New Orleans, Gulfport, with its long history with Chiquita, will be considered as an option."

Though Chiquita originally planned to exit Gulfport completely in 2014, leaving a ripple of unemployment in its wake, Daniels reported that it continues to store produce for ripening at John Fayard Warehousing in Gulfport, with the brand’s containers regularly visiting the port for freight shipments.

Gresham informed the Sun Herald that that in 2015, Chiquita represented about 4.8 percent of the Port of New Orleans’ total container tonnage with 244,861 tons of bananas shipped in the year.

No official announcement has been made of the banana giant’s intention to move, so AndNowUKnow will continue to follow the story as it develops further.

Chiquita

LA CAÑADA FLINTRIDGE, CA – The Allen Lund Company (ALC) has announced that Matt Christ, Business Development Specialist of ALC's Los Angeles-based office, will now represent the company in the Fresh Produce and Floral Council (FPFC) 2016 Apprenticeship.

"I'm very proud to support Matt in the 2016 FPFC Apprentice Program. Since his first day of work in the LA Sales office, Matt has shown a strong hunger and eagerness to learn as much as he can about our industry and all things related," said Tracey Lewin, Manager of the Los Angeles office, in a press release. "This is a perfect opportunity for him to quench that hunger while networking and meeting key people who will undoubtedly become important components of Matt's future success.”

As we’ve previously reported, Matt was promoted to Business Development Specialist in January after a six-year employment with the company, beginning with ALC’s Rochester office. Matt’s primary responsibilities extend to contributing to company growth and maintaining customer satisfaction.

"I'm very excited and honored to have been selected for the apprenticeship. This is a great opportunity to learn even more about our industry and the people that keep it running. I'm extremely grateful for the opportunity to become a part of the FPFC," stated Matt Christ.

In a statement, the company said that it continues to stand behind Matt and his continued success, and looks forward to his achievements through the apprenticeship.

“I am confident that Matt's participation in this program will provide an excellent return on investment not only for himself and his own future, but for Allen Lund Company too,” finished Tracey. “Congratulations and good luck to Matt!"

The Allen Lund Company

NEW ZEALAND - Shipments of New Zealand-grown KORU® apples are here, Coast to Coast Growers Cooperative has announced. While KORU® is also now produced in the U.S., New Zealand is the source of the bulk of harvesting take place in the faraway, lush orchards of New Zealand, where the apple was first discovered and brought to market.

85 percent of this year’s New Zealand KORU® crop is being shipped to the U.S. for distribution and sales with the help of three suppliers representing the Coast to Coast Growers Cooperative: 

• New York Apple Sales, New York. Kaari Stannard, [email protected], John Cushing, [email protected], or Michael Harwood, [email protected] -  518.477.7200.
• Borton Fruit, Washington. Sky Johnson - 509.823.2745, [email protected]
• Oneonta Starr Ranch Growers, Washington. Bruce Turner, [email protected] or Shane Cass, [email protected] -  509.663.2191

The first May arrivals of KORU® have already been sold, with more containers to arrive later in May and over the next few months, according to a press release, meaning orders are still available for New Zealand KORU® apples in 12 kg. Euro and 18 kg. traypack cartons, and pouch bags!

“80 percent of these apples are in the three prime sizes, really perfect-size fruit,” explained Tim Byrne, Manager of Coast to Coast Growers Cooperative, adding that fruit quality is exceptional. “This is the third New Zealand crop, slated for export to North America. These apples are ideal in many ways – sweet flavor, crisp flesh, great color, and good size.”

“KORU® brings together the subtle sweetness of the Fuji with the Braeburn’s slight tang,” noted Byrne, who explained the cross is positioned as a premium apple, similarly to how Honeycrisp is. “It’s really an inspired combination, perfect for eating, baking, and cooking.”

KORU® apples are being supported with point-of-sale and marketing materials including display bins, high-graphic merchandising cartons, and pouch bags. Positioned to consumers with the tagline: “Escape Ordinary,” the brand is described as, “crisp, sweet, and naturally delicious.” These promotional materials can be obtained at no cost through the Coast to Coast Growers Cooperative supplier from which you order.

Only commercially harvested in New Zealand since 2013, more and more orchards are being planted with KORU®, with 15 growers in New York and another six in Washington.

To view a video on the growing and harvesting and grading of KORU® apples in New Zealand, watch the video above, and keep your eyes peeled for even more updates on the international apple season from AndNowUKnow.

KORU® Apples

FOWLER, CA - Summer is right around the corner, and with it, the demand for warm-weather treats and snacking opportunities. Now is the time for families to start thinking about what kind of snacks they want to provide for kids on vacation as we look towards June. 

“Sweetheart Mandarins are a great alternative to junk food items,” Bee Sweet Citrus President, Jim Marderosian, tells me. “They’re tasty, easy-to-peel, and healthy – making them the perfect summer snack.”

Bee Sweet mandarins are also available year-round. Once the company’s domestic season is over, Bee Sweet sources them through its summer import program which just begun. In addition to being child-friendly, easy-to-peel, and already a single-serving treat, Sweetheart Mandarins offer a multitude of health benefits. One mandarin provides an estimated 80 percent of the recommended daily Vitamin C intake, as well as nearly 10 percent of the daily recommended value of fiber.

Childhood obesity has more than doubled in children and quadrupled in adolescents during the past 30 years, according to the Centers for Disease Control and Prevention. By adding Sweetheart Mandarins into a child’s meal, consumers will be providing kids with a healthy snack while satisfying their sweet tooth. 

“Kids of all ages are sure to be huge fans of our Sweetheart Mandarins,” Marderosian, added. “They’re undeniably sweet and extremely healthy. What’s not to love?”

Sweetheart Mandarins are available at your local retailer, and mandarin-specific recipes can be found on Bee Sweet’s Pinterest account at https://www.pinterest.com/beesweetcitrus/.

Bee Sweet Citrus

CALIFORNIA - Coming off of some late spring rains in California and the recent Mother’s Day push for those fresh chocolate-covered strawberries, I checked in with growers to see how the season is looking as we approach Summer.

“Everything is looking good! Production continues to increase as Santa Maria will hit its "peak volume" of the season now through the next 2 to 3 weeks,” Naturipe Farms’ Director of Marketing, Kyla Oberman, shares with me, adding that there is plenty of promotable volume with both good quality and sizing.

Moving through to summer, Kyla says, “Salinas and Watsonville, CA, will steadily increase in production now through mid-June.”

Just before Mother’s Day, California saw rain throughout several regions of the state.

Dan Crowley, Vice President of Sales and Marketing for Well•Pict Berries, tells me, however, that the rain event was negligible in the company’s Watsonville and Salinas, CA, growing areas.

“Amounts ranged from traces on our inland farms to 0.25 inches on our acreage by the ocean,” Dan says. “We are experiencing no damage on our inland farms, but 20-30% "cull rate" on the aforementioned coastal farms for the first round of harvest.”

As for the berries themselves, Dan reports that the flavor profile is outstanding on Well•Pict’s proprietary varieties, making it a challenge to keep up with demand.

“The volume shall continue to ramp up in Watsonville, CA, with plenty availability through May and into the Summertime for promotions,” he says moving forward.

And also under way are Well•Pict’s raspberries, which Dan says are looking excellent.

“We will have that excellent product to offer on promotions right along with the strawberries throughout the Summer.”

Cindy Jewell, Vice President of Marketing for California Giant Berry Farms, tells me that the company is expecting its Watsonville/Salinas supply to continue to increase as soon as warmer weather kicks in.

“We did have some rain last weekend and it has been cool and overcast all week this week, which has slowed things down in this region. The plants are loaded with fruit and bloom so, as soon as the weather breaks, volume will increase for the next several weeks and we should see that continue through June.”

Santa Maria is in peak volume now, Cindy says, with harvest in the region continuing and weather being a bit more cooperative. She adds that slight declines can be expected in volume over the next several weeks, but that demand from California Giant’s trading partners has been steady with many retail and foodservice promotions in place.

“We do also anticipate demand to be increasing as we approach the pull for Memorial Day right around the corner, and are already seeing a shift in demand this week.”

With everything lined up for Summer’s arrival, AndNowUKnow will continue to follow the latest in berry news throughout the season and beyond.

Naturipe Farms Well•Pict Berries California Giant Berry Farm

ROSEMONT, IL - US Foods has updated its IPO filing with the SEC, this time with a much higher value estimated.

Up until this morning, the estimated value for the foodservice company was upwards of $100 million, according to Fortune. Now, according to the SEC filing dated early today, May 13th, the company lists the proposed maximum as more than $1.22 billion.

As we reported recently, the company had just listed additional underwriters, now up to 14.

“We are offering 44,444,444 shares of our common stock,” the company said in the filing, adding that it is currently estimated that the IPO price per share will be between $21 and $24. “To the extent the underwriters sell more than 44,444,444 shares of common stock, the underwriters have the option to purchase up to an additional 6,666,667 shares from us at the initial public offering price less the underwriting discount within 30 days of the date of this prospectus.”

The net proceeds from US Foods’ IPO are intended to be used for repaying indebtedness, as well as for working capital and general corporate purposes.

US Foods reported $23.1 billion in net sales, $875 million in adjusted EBITDA for its quarter ended January 2, 2016. Currently, the company supplies over 250,000 customer locations nationwide, composed of 62 distribution facilities and approximately 6,000 trucks.

US Foods

SAN DIEGO, CA – As new food trends come and go, there’s a few in particular that seem to stick, bringing new innovations and tasty exploits to the industry. The latest comes in the form a double stout from Green Flash Brewing Company, starring the Serrano pepper.

Infusing the meaty kick of Serrano Chiles with a brown beer head, Dia De Los Serranos boasts a weighty 8.8 percent ABV to round out its acidic aromas. The company said that it cultivated the beer based on flavor-rich Mexican mole recipes. 

Paired with flavored hints of roasted malt, coffee, and chocolate, reviewers from both Paste Magazine and Mansfield News Journal described their personal liasons with the beer as rich experience, with a lasting and walloping pepper flavor at the end of each gulp.

As for food pairings, just how spicy can you go when considering a Serrano-centric beer? As Steve Goble of the Mansfield News Journal stated, “This beer is intense enough to stand up to any food you serve with it.”

Originally starting as a cask-only offering from the San Diego brewery, Dia De Los Serrano is now available year-round in 22oz bottles, making this an easily attainable flavor trend for the pepper enthusiast.

The Serrano pepper is a Mexican chili pepper that is 4.6 times hotter than a jalapeño, and ranks between 10,000 to 30,000 units on the Scoville Scale.

As Serrano peppers, and other spicy chilis continue to star in food and beverage trends across the board, I can’t wait to see which dishes and drinks I’ll have an excuse to seek out next.

Keep up your kick with AndNowUKnow as we continue to cover rising trends in the produce industry and beyond.

WATSONVILLE, CA – With more than 50 riders and 32 sponsors, this year’s classic Tour de Fresh event is already breaking numbers with donations and attendees. With a goal of raising at least $175,000 for Let’s Move Salad Bars to Schools, riders have already raised $27,132 for the July event.

“In order to meet our goal of placing 50 more salad bars in schools this year, we’ll need support from industry professionals, family, friends, and local community members,” said Cindy Jewell, Vice President of Marketing at California Giant Berry Farms, in a recent press release. “We want everyone who supports this event to feel a sense of ownership and pride, knowing that their contribution lasts far beyond 2016 - it provides fresh fruits and vegetables to thousands of students for years to come.” 

Participants are comprised from all areas of the produce industry, and will ride from Napa Valley to Monterey, CA, from July 26 to 28. As this year’s event takes place three months earlier than last, Tour de Fresh is encouraging everyone to share donation pages via social media, lead fundraising events, and involve their surrounding businesses and schools to help support the earlier sponsorship.

“We believe wholeheartedly in the mission of Tour de Fresh, which is why Sunripe Certified Brands has chosen to be a Premier sponsor this year,” said Jon Esformes, CEO of Sunripe Certified Brands. “It is our hope that companies and communities will rally together to support the riders who have committed their personal time to make a significant impact on the lives of thousands of students.”

Anyone who donates to a rider now through May 31 will be automatically entered into a raffle to win a $1,000 Visa gift card, courtesy of the following Premier sponsors:

• California Giant Berry Farms
• Church Brothers Farms
• Dole Fresh Vegetables
• Enza Zaden
• Fresh Point
• J&J Family of Farms
• Mission
• Sunripe Certified Brands
• Tanimura & Antle
• Tsamma

Tour de Fresh is presented by the California Giant Foundation for the fresh produce industry. Through the event donations, Tour de Fresh and Let’s Move Salad Bars to Schools hope to supply over 50 schools nationwide with salad bars. 

For a full list of available Tour de Fresh sponsorships and riding opportunities, visit the website here or contact Brock Nemecek at [email protected].

Keep cycling back to AndNowUKnow as we continue to cover the upcoming Tour de Fresh event, and get registered now!

Tour de Fresh