FOLSOM, CA - Members of the U.S. Highbush Blueberry Council’s (USHBC) health research committee gathered with a group of scientists from universities and institutions around the world for the second year in row, all uniting for one cause—blueberries. 

With the topic of scientific research on the potential health benefits of blueberries on everyone’s minds, researchers and council members alike explored the effects of blueberries on human gut microbiome, and the types of studies that the USHBC Health Research Committee should fund in order to successfully explore this topic. The April 19-21 event in Silverton, OR, culminated in a farm tour of Riverbend Organic Farm in Jefferson, OR. 

“The blueberry industry has dedicated significant resources to health research in recent years,” explained Mark Villata, Executive Director of USHBC in a statement. “The investment has helped position blueberries as a fruit with many potential health benefits – all based on sound scientific research. And with much larger human studies underway, we stand to learn a great deal more.”

Over the past 15 years, the USHBC has focused on building a robust health research program, meticulously uncovering evidence to bolster evidence for blueberries’ potential health benefits. In recent years, the program strategically focused on areas of cardiovascular health, cancer, insulin response, and brain health, but now, human gut microbiome is top-of-mind. Most recently, preliminary research findings from a multiyear human study were presented at the meeting of the American Chemical Society (ACS). The study explored the effects of blueberries on memory and cognitive function in older adults.

As what the council refers to as the ‘health halo’ around blueberries continues to grow, also does consumer purchases. According to the council, recent survey data revealed the following findings about blueberries:

• Americans are nearly twice as likely as they were nine years ago to buy blueberries in the coming year
• Data now shows that consumers associate blueberries with health
• Awareness of the fruit’s nutritional benefits is closely tied to likelihood that a purchase will be made
• 99 percent of consumers believe blueberries to be a healthy food
• 84 percent state awareness of specific health benefits, a 115 percent increase over 2004

To access published blueberry health research and resources for health professionals, please visit: http://www.blueberrycouncil.org/healthresearch, and to learn all about the latest scientific findings regarding the produce industry, AndNowKnow has got you covered.

U.S. Highbush Blueberry Council

OAXACA, MEXICO - Southern Mexico saw a strong earthquake early Sunday, May 9th, hitting at a depth of 24.4 kilometers, or just over 15 miles.

The shakeup registered at a 5.9 magnitude on the Richter scale and was felt as far as Mexico City, nearly 300 miles away. The hit was enough to sway buildings and send some locals rushing to the streets, Reuters reported, though Mexico City Mayor Miguel Angel Mancera said there were no reports of damage or injuries.

The response is understandable, however, considering the area just saw a series of volcanic eruptions in recent weeks. As we previously reported, the last was enough to shut down air traffic and closed roads as ash blanketed the region.

Connections between the eruptions and the earthquake have not yet been reported.

According to the USGS, the following nearby places were impacted by the earthquake:

• Pinotepa de Don Luis, Mexico, 29.0 km (18.0 mi) from the focus
• Santiago Pinotepa Nacional, Mexico, 44.0 km (27.3 mi) from the focus
• Santa Maria Asuncion Tlaxiaco, Mexico, 77.0 km (47.8 mi) from the focus
• Ometepec, Mexico, 78.0 km (48.5 mi) from the focus
• Mexico City, Mexico, 351.0 km (218.1 mi) from the focus

Luis Felipe Puente, the National Head of Emergency Services, took to Twitter to reinforce that no immediate reports of damage in much of southern Mexico had been received, including the Puebla, Chiapas, and Guerrero states.

We will continue to follow this and other natural occurrences that could influence the produce industry as more details develop.

ROSEMONT, IL - In tandem with its Q1 2016 financial report, US Foods has announced further progress towards its previously announced initial public offering (IPO). U.S. Foods Holding has registered an amended Form S-1 with the U.S. Securities and Exchange Commission detailing new underwriters for the deal. According to the new filing, the list of underwriters now includes:

• Goldman, Sachs & Co. 
• Morgan Stanley & Co. LLC
• J.P. Morgan Securities LLC
• Merrill Lynch, Pierce, Fenner & Smith Incorporated
• Citigroup Global Markets Inc.
• Credit Suisse Securities (USA) LLC
• Deutsche Bank Securities Inc.  
• Wells Fargo Securities, LLC
• KKR Capital Markets LLC
• BMO Capital Markets Corp.
• Guggenheim Securities, LLC
• ING Financial Markets LLC
• Rabo Securities USA, Inc.
• Natixis Securities Americas LLC

In the company’s Q1 2016 financial report, net income doubled over the same period last year, increasing from $7 million in Q1 2015 to $14 million today. Net sales increased 0.7%, increasing $39 million to reach a total of $5.6 billion.

The company has been focusing on streamlining its works in recent months, acquiring companies like foodservice data startup, Food Genius, New England-based wholesale distributor, Cara Donna Provision Co., and family-owned foodservice distributor Dierks Waukesha. US Foods also recently confirmed that its Severn, MD, distribution center will close in June 2016.

Still, US Foods has not revealed any pricing details for the IPO price per share. US Foods has previously announced it will list its common stock on the New York Stock Exchange under the symbol “USFD.” Fortune had reported that US Foods planned to raise $100 million, and that this number is likely to increase as the filing moves forward. 

Other highlights from US Foods’ Q1 2016 financial report include:

• Adjusted EBITDA increased $44 million to reach $203 million
• Gross profit increased 31% to reach $949 million
• Independent restaurant case volume grew 8.0%.
• Operating income increased $43 million, or 102%, to $85 million in 2016

With US Foods continuing to pick up speed towards an impending IPO, you can count on AndNowUKnow to update you with the breaking news.

US Foods

CHESTERFIELD COUNTY, VA – Infusing its line of all natural guacamoles with the nutritious power of vegetables, Sabra Dipping Company has announced that consumers can expect three new flavors in its innovative new Veggie Fusions line.

"More than two-thirds of American consumers purchase avocados," said Marketing Director Tracy Luckow, in a recent press release. "And we've all fallen for Guacamole in a big way. In expanding our successful line of products we kept true to what people enjoy, the chunky avocado and clean flavor while adding even more great taste by blending in the best, freshest vegetables for an absolute breakthrough in guacamole.” 

Sabra said that its Hass avocados are blended with a variety of colorful, chunky cut, fresh vegetables picked at peak ripeness to add antioxidants, fiber, and vitamins. The three Veggie Fusions flavors, and the vegetable varieties featured in them, are as follows:

• Garden Vegetable: carrots, peppers, tomatoes, herbs, spices
• South Western: corn, peppers, onions, black beans, garlic, tomatoes
• Mango Lime: mango, lime, herbs

The company said that this new line of packaged guacamoles has an overall reduced fat content by 30 percent, when compared to other guacamoles. “The added benefit is not only more flavor but a reduced fat content which is win-win even for those of us who appreciate the good fat content in guacamole," added Luckow.

Sabra’s Veggie Fusions line is vegan, kosher, and gluten-free. The packaged guacamole varieties are available now, in 7oz containers with a suggested retail price of $3.99.

Veggie Fusions were created at the company’s Center of Excellence, based on consumer feedback on reduced fat per serving guacamoles, and trending combinations of guacamole and vegetables in restaurants, recipes, and social media.

Dip back into AndNowUKnow as we continue to cover new products and innovative produce industry news.

Sabra

LOS ALAMITOS, CA - While Alex Jackson is Senior Account Manager for Frieda’s Specialty Foods, she is also something else that made her words an insightful addition to the Fresh Produce and Floral Council (FPFC) April luncheon in Cerritos, California—Alex is a millennial.

“Different generations shop differently and think differently,” she said, according to a press release. “You need to understand your shoppers’ core beliefs to stay relevant.”

With this in mind, the company offered a brief breakdown into the generations that make up the pool of consumers the industry is looking to reach, saying that understanding generational traits is key to staying relevant, improving shoppers’ experience, and boosting sales.

“Companies in all industries are making changes to their branding to appeal to my generation, the Millennials,” Alex said. “But to make your stores relevant to us, it takes more than just changing the look—you have to be a company we can believe in.”

Companies like Frieda’s have made moves to appeal to Millennial shoppers, such as a redesign of their packaging, with the goal of not alienating other generations.

For those born before 1946, referred to as “The Silent Generation” or Traditionalists, take the most time going through the store, but spend the least during shopping trips, according to Frieda’s.

On the other side, the generation born from 1946 to 1964 seem to prefer bargains, but don’t mind paying more for brands they are loyal to. Baby Boomers are currently the largest shopping generation, and prefer helpful produce managers and cheerful cashiers at their stores, which can keep them coming back.

Generation X, born between 1965 and 1980, are reported to be willing to go with a new brand if quality and customer service prove exemplary. 

And then there are the latest entrants to the buying market. Millennials, born between 1981 and 2000, are projected to be spending more than $200 billion annually starting in 2017, and make up half the workforce by 2020. When it comes to preferences, Frieda’s reports that Millennials are loyal to brands that offer them a new experience, treat them well, and are aligned with their beliefs.

Bearing this marketing angle in mind, Frieda’s looks to focus on offering culinary adventures to Millennials and the generations that have preceded them, opting to inspire new food experiences for friends, families, and food lovers.

Keep checking in with AndNowUKnow for the latest marketing and trending hits promoting fresh produce.

Frieda's Specialty Produce

WASHINGTON, D.C. – The U.S. Department of Agriculture (USDA) has imposed sanctions on three produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

According to a recent USDA press release, the following businesses and individuals are currently restricted from operating in the produce industry:

• Kelly Brothers Inc., operating out of Exeter, CA, for failing to pay an $18,803 award in favor of a California seller. As of the issuance date of the reparation order, Christopher J. Kelly was listed as the officer, director, and major stockholder of the business.
• Khans International Trading Inc., operating out of Orlando, FL, for failing to pay a $14,363 award in favor of a Florida seller. As of the issuance date of the reparation order, Ajia Khan and Fazlur Khan were listed as the officers, directors, and/or major stockholders of the business.
• Delta Global Farms Logistics LLC, operating out of Greenwood, MS, for failing to pay a $7,728 award in favor of a South Carolina seller.  As of the issuance date of the reparation order, Joyce Nicosia was listed as a member of the business.

The USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. 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 the USDA continues to support the fruit and vegetable industry.

Agricultural Marketing Service

MINNEAPOLIS, MN - In an effort to speed up its supply chain amidst growing competition from rivals like Walmart and Amazon, Target has announced a multi-billion dollar plan to crack down on its relationships with suppliers, Reuters reports. 

According to the publication, Target will 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. 

"These steps are a key part of becoming more reliable," Mulligan told the news source in an exclusive interview. In the letter, Target said its main goal is to keep products stocked, and to "lower missed sales for all of us." 

"We had a very long question-and-answer session," Mulligan explained. "Obviously there were concerns, so we listened to those and we feel very good with where we are going with our vendor partners." 

This announcement comes on the heels of rival Walmart informing its suppliers that it was raising its standard for on-time delivery to 95 percent from 90 percent at its annual vendor conference this past February. According to Reuters, Walmart will also be cutting down on the window for deliveries to within one to two days of a target date, down from one to four days previously. 

As a result on the company’s reemphasis on fresh product including produce and other perishables, Target’s supply chain has became much more complex in recent years, increasing the need to hold more inventory at any given time. Amy Koo, a Principal Analyst with Kantar Retail told Reuters these new changes will allow Target to minimize its inventory holdings, a key part of retail efficiency. "In theory, everything can move faster, and they will have less stuff in the system." 

The new rules detailed in the letter include the following: 

• Domestic suppliers must give a single-day arrival date for shipments to Target's warehouses
• Suppliers will no longer have a "grace period" to ship a few days after the promised date without penalties
• Target will hike fines on late shipments to 5 percent of the order cost

• The retailer is considering "escalating charges of $5,000-$10,000" for suppliers who fail to provide complete and accurate product information 

As more information about Target’s supply chain developments are released, AndNowUKnow will serve the latest right to your inbox.

Target

SALINAS, CA – As the weather heats up, school winds down, and the sun continues to shine, Mann Packing has announced its own seasonal trait with the company’s new “Summer Fun” vegetable tray packaging.

“The limited edition design demonstrates Mann’s distinction as an industry leader in innovation with a collection of special edition packaging for summer,” said Kim St. George, Director of Marketing and Brand Management, in a press release.

The seasonal packaging graphics will be featured on Mann Packing vegetable trays starting on Memorial Day, and will adorn the company’s trays until August.

“To bring the spirit and character of the trays to life, classic moments of summer were chosen, creating a visually striking product on the shelf and meaningful connections with consumers,” finished St. George.

The “Summer Fun” graphics will be featured on the company’s 18 oz and 40 oz trays, for both the U.S. and Canada.

Attendees of this year’s United Fresh Expo, can see the graphics and trays showcased at the Mann Packing booth #1823. 

Keep an eye to AndNowUKnow as we continue to cover promotions and marketing strategies to heat up your summer season.

Mann Packing

PARMA, ID – An automation fever is gripping the ag industry, with science looking to provide us with the bots and mechanisms that will place produce at the forefront of the cutting-edge.

It is the time for technology in our industry, according to Bayer, which calls robots and autonomous tractors an important solution to improving farm efficiency.

“Agriculture still offers great potential for automation,” Peter Dahmen, a technology expert in Bayer’s research department, said in a release. “We don’t know what the future looks like. But it is quite conceivable that robots will help us to increase the productivity of farming in a more sustainable and environmentally compatible way.”

One of the machines the company listed as helping to lead the charge is a microplanting robotic “agricrab,” Prospero.

“Why not take the large machines of today and break them into thousands of smaller machines,” said the contraption Creator, Des Moines, Iowa-based engineer David Dorhout, according to Bayer.

With six legs and the capability of navigating the field, planting, and marking locations to spray, Dorhout hopes that, one day, a Prospero fleet will fill the fields, using infrared signals to communicate amongst themselves and direct needed assistance to any untended area.

“This approach completely frees the farmer from the farm machine, and gives him more time for the economic and scientific aspects of his agribusiness,” Dorhout said. “I’m really interested to see what the farmers of tomorrow will come up with if they are given a tool that tends their fields inch by inch or plant by plant.”

The farmers of tomorrow is a concept that many of us wonder about as more and more automated assistants come into play. As we reported recently, recent research has projected an agricultural robot market climbing up to $16.3 billion by 2020, and affordable driverless tractors in the next decade.

“Precision is the key to efficient agriculture,” Professor Simon Blackmore, Director of the newly-founded National Centre for Precision Farming (NCPF) in Great Britain, told Bayer. “And later robot generations will be intelligent enough to adapt to nature, the weather, and other environmental conditions.”

Dorhout predicted that robotics will have revolutionized agriculture in the next 20 years, with new technologies working alongside traditional machinery.

It’s quite a picture painted for our future fields, and as it approaches, AndNowUKNow will continue to report how the industry continues to make it happen.

Bayer

WENATCHEE, WA - Stemilt is gearing up for the Northwest cherry season as the overall state crop looks to produce more than 20 million boxes this year. With an early start slated for June 1st, retailers should be planning ahead for June and July promotions, as the compressed season will create higher demand within produce departments. 

Marketing Director, Roger Pepperl, joined me to talk about all-things Stemilt, and what retailers should be prepared for during the 2016 Northwest cherry season. From exclusive varieties and new merchandising concepts and displays, Stemilt is looking to share its recent innovations and strategies to help drive sales upward.

“This year it is important to note a much shorter season and changes in timing for ad programs,” Roger tells me. “You will most likely see 90 - 95 percent of the fruit shipped in June and July. While it’s good to have cherries early at retail, it will create challenges toward the end of the season for customers who don’t plan their schedules around this season’s new peaks and expectations.” 

This year’s Northwest crop is slated to be compressed to a period of eight weeks and retailers need to capture every sale possible. 

“We are going to see ads for the 4th of July pulling around June 15th and you will see lots of promotions moving forward,” Roger adds. “The 4th of July ad is a really great opportunity that I would consider a slam dunk at retail so get your orders in now. The month of July is so important for in-store promotions and we ask retailers to work with us to plan early and take advantages of our key, and new, opportunities.” 

From about July 1st through the 20th, Stemilt will be promoting Cherry Festivals with a variety of different cherries on ad at the same time. With the compressed season, Stemilt advises that retailers build big, dynamic, eye-catching displays that communicate that festival atmosphere and draw the consumer and impulse buyer into the produce department. 

The Cherry Festivals will feature dark sweet cherries and Rainiers in both organic and conventional, as well as the new Stemilt-exclusive, Skylar Rae variety in limited volumes. Skylar Rae is a bi-colored cherry with a firm texture and flavor profile that the company says makes it “the sweetest cherry you’ll ever eat™.”

“Displaying multiple varieties has proven to increase sales and impulse purchases,” Roger says. “Consumers like options and like the idea of a destination.” 

The Kyle’s Pick Program is also slated to have a great year and features premium varieties and the largest sized fruit, like Stemilt’s Skeenas that offer high-firmness and high-flavor. Back by popular demand, Kyle’s Pick cherries will come in pouch bags in order to help retailers merchandise while driving repeat sales of cherries this season. This is truly a premium program with the consumer in mind. 

“This year we are looking at 9.5 row sizes and larger for Kyle’s Pick cherries, which offer consumers a unique eating experience paired with amazing dessert flavors,” Roger says. “These cherries are picked for size, maturity, sugars, and firmness.”

Rainier cherries, another consumer favorite, will start around the 15th of June and will only be available for three to four weeks. Typically, Stemilt’s Rainier program will just be getting started around the first two weeks of July, but this year early July will actually be at the tail end of the Rainier cherry program. While they will not make it all the way through the month, they are a must-have while available – just another reason for retailers to stay ahead of the shorter season. 

With varietal timing in flux across the entire season, Stemilt’s Half Mile Closer to the Moon cherries will be coming on early as well, slated for July 28th instead of the typical mid-August arrival. A majority of the fruit will come in early August.

“These high-elevation cherries are grown around 2,500 to 3,200 feet above sea level where the climate remains cooler during the heat of summer and cultivates an amazing crop of cherries,” Roger tells me. “Premium varieties including Skeena, Sweetheart, and Staccato® cherries are grown for this program.” Stemilt is continuing to plant higher in elevation which will continue to extend this program in future years.  

Stemilt will be promoting its new display bins during 2016, with dark sweets on the front of the bin and Rainier cherries on back; allowing retailers to promote, at any given time, the variety of their choosing. Also new on the merchandising front are Stemilt’s aisle displays, which will feature a one-box display unit for Skylar Rae. These cherries will also be marketed in a new dome clamshell that features a high-gloss, metallic label. 

“Stemilt is always working to differentiate in the orchard and at the store level,” Brianna Shales, Communications Manager, tells me. “With our new merchandising options we are visually capturing the consumers and building excitement throughout our retail cherry programs.” 

Brianna also shares that Stemilt is continuing to go down the path of reaching the consumer directly and as she tells me, there are exciting things in-store to engage those cherry lovers. 

“Cherries are a big driver to our website, and over the summer months we will have a host of opportunities to share our versatile cherry program with consumers,” she says. “Included in these offerings is a new eBook which presents a cherry how-to guide on all things Stemilt, from how to pick the perfect cherries, to freezing, storing, and juicing. We look at ourselves as the fruit experts, and definitely the cherry experts, and that is how we will engage with our social media outlets and consumer programs this year.” 

Stemilt’s Farm to Fork program is picking up steam as well, and introduces retailers and consumers to the stories that have built and continue to grow Stemilt’s loyal following and expanding customer base. 

“Whether consumers are eating a Skylar Rae cherry, Kyle’s Pick cherries, or Rainiers, we want to show the work, the stories, and the behind the scenes efforts that go into our program to bring some of the world’s most amazing cherries to market,” Brianna says.

So, what are you waiting for? Stemilt has great things in store and the strategies to take advantage of the Northwest’s upcoming cherry crop.

Stemilt