CORAL GABLES, FL – With its first quarter having ended on April 1, Fresh Del Monte Produce announced its Q1 earnings with increased net sales, net income, and operating income. The company’s gross profit for 2016’s first quarter increased by a heightened $40.3 million to $140.7 million, as compared to last year’s Q1 reporting of $100.4 million.

"Our first quarter performance was a great start to the year," said Mohammad Abu-Ghazaleh, Chairman and Chief Executive Officer of the company, in a press release. "We achieved higher revenue, and stronger earnings growth, while continuing to invest in our future. Our performance was led by increased sales in our other fresh produce and banana businesses, which further validates the diversity of our globally sourced product offerings.”

The company reported a higher earnings per diluted share of $1.57 for the first quarter of 2016, as compared to the company’s 2015 first quarter earnings per diluted share of $0.80. For this year’s Q1 Fresh Del Monte’s comparable earnings per diluted share were $1.57, compared with comparable earnings per diluted share of $.083 in the first quarter of last year. 

“We also benefited from progress in advancing our distribution capabilities in North America and Asia as well as contributions from our focus on cost-savings and maximizing operating efficiencies," continued Abu-Ghazaleh. "Our goal, as always, is to continue to strategically position our business to deliver growth and shareholder value over the long-term." 

Reported increases and highlights to the company’s Q1 report are as follows:

• Net sales increase of $9.7 million to $1,018.1 million from 2015
• Operating income increased to $90.5 million, from 2015’s reporting of $56.3 million
• Comparable operating income rose to $90.5 million from 2015’s Q1 comparable operating income of $57.7 million
• Net income rose to $81.7 million from 2015’s Q1 net income of $42.5 million
• Comparable net income reported as $81.7 million, compared to last year’s Q1 report of $43.9 million

Since reporting the 2016 Q1 earnings, the company's stock began rising. As of May 3, 2016, 10:45 AM (PST), Fresh Del Monte Produce’s price to earning ratio was at 39.65, and stock had risen by 4.17 percent.

Continue to watch the movement of industry financials as AndNowUKnow reports on quarterly announcements and stock reports as they roll in.

Fresh Del Monte Produce

SAN ANTONIO, TX - A trip to the beautiful Mexican city of Cancún awaits you, and it's all thanks to an invitation from Juan Ariel Reyes, President of the Mexican Association of Protected Agriculture (AMHPAC). Juan joined me to give me the scoop on the association’s upcoming 9th Annual Convention in Cancún, Mexico, which takes place on the 25th and 26th of August at the Fiesta American Condesa resort.

“We're really excited this year to take the conference this year to Cancún,” Juan tells me as we discuss what attendees can expect for the 2016 congress, which promises international leaders of the horticultural industry, agricultural growers, government officials, and supply chain innovators. 

Juan says the move into the beach city of Cancún was a logical progression for the association after having successful congresses in Puerto Vallarto and Los Cabos. The association is expecting over 600 attendees and 240 producers in Mexico. 

“Looking very forward to seeing you there in Cancún on the 25th and 26th of August at the Fiesta American Condesa!” Juan concludes.

To learn more about the upcoming convention, watch my full interview with Juan Ariel Reyes above! Hope to see you there.

AMHPAC

CALIFORNIA - In an update to our article last month about the pending $175 million deal for the Metropolitan Water District to purchase land in Northern California’s Sacramento-San Joaquin Delta, it looks like despite serious opposition from Delta landowners and Northern California officials, a judge has denied a motion to block the plan.

The Delta is an estuary through which the State Water Project and the federal government’s Central Valley Project pump billions of gallons of water annually to the farmlands of the San Joaquin Valley and urban residents in Southern California by way of the Sacramento Valley.

Earlier this week, Judge Barbara Kronlund in San Joaquin Superior Court ruled that she would not yet block the eyebrow raising purchase of five islands in the Sacramento-San Joaquin Delta, declining to grant a temporary restraining order to officials from San Joaquin and Contra Costa counties.

However, Judge Kronlund’s ruling does not end litigation against the purchase. A hearing is scheduled on May 19 for a preliminary injunction against the deal. According to the Sacramento Bee, because the Metropolitan Water District doesn’t plan to finalize a purchase until June, the May 19 hearing will be crucial in the final decision.

Metropolitan has previously stated that it may use the property to store tools that will be used for Governor Jerry Brown’s $15.5 billion Delta tunnels project, which seeks to re-engineer the Delta’s plumbing system by building a pair of underground tunnels. Metropolitan is a leading proponent of the tunnels, which are designed to improve the flow of water to the southern part of the state.

The opposition’s argument is mainly that Metropolitan shouldn’t be able to buy these five islands without undergoing a California Environmental Quality Act review, according to the Sacramento Bee. These reviews typically take months.

Metropolitan argues that this type of land purchase shouldn’t require a review, and assures it will comply with any and all environmental laws once it makes a formal plan on what the usage of the land will be.

As the continued battle over this land purchase continues, AndNowUKnow will give you the latest updates.

NEW YORK CITY, NY - Fairway Group Holdings Corp officially filed for Chapter 11 bankruptcy in a New York court yesterday, May 2.

The filing comes after consecutive quarterly losses going back since 2013, when the company went public. Now the company stated that it is filing for a prepackaged Chapter 11 plan to restructure debt and seek approval for $55 million in debtor in possession credit, according to a Fortune report.

As we previously reported, signs have been occurring over the last couple of months that the retailer could file for bankruptcy, including several probation warnings from Moody’s.

In a court filing, the company listed assets in the range of $100 million to $500 million, and liabilities of $100 million to $500 million, and has reportedly hired turnaround management firm Alvarez & Marsal’s Dennis Stogsdill as its chief restructuring officer.

Bloomberg has reported that the company’s shares have dropped 94 percent in value in the past 12 months, predicting that the company would file for bankruptcy this month.

Currently the retailer is aiming to reduce its debt by about $140 million, according to Fortune, through restructuring as it looks to retain jobs.

At the end of last year and the start of 2016 the chain had said it planned to boost profit with new stores, currently operating 15 locations in the New York area.

AndNowUKnow will continue to report on this story as more details develop.

Fairway Markets

VERO BEACH, FL - With the Mexican grape season finally here, Seald Sweet’s Category Manager Chris DeSana took the time to give me some insights on the current forecast for the season’s kickoff.

“The United States is the target audience for grapes grown in Mexico, with limited amounts exported to other markets,” Chris tells me when sharing some of the estimates for the upcoming season, explaining that, typically, about 80 percent of Sonoran product ships to the U.S. and Canada. “The greatest potential for far reaching markets would be new seedless varieties.”

The harvest season kicked off with the beginning of May, the two earliest regions being Obregon and Guaymas.

One change, Chris notes, is that this will be the first year that fruit will be commercially harvested in Obregon.

As for the challenges, so far Mother Nature continues to keep things interesting for growers.

“As an industry, it looks like the deal could be a little bit light in the early portion,” Chris says, explaining that adverse - meaning cooler - weather during bloom can affect timing and volume. “Mexico had some very cold weather and freezes in February during the bloom period. But overall the crop should be similar to last year – what was probably lost due to freeze damage should be gained by new plantings.”

But, with new grape production coming on in Mexico, Seald Sweet International is in continued growth mode with substantial volumes projected despite early season weather problems. The company is expecting shipments as high, or higher, than the previously tripled volumes it marketed during last year’s six-week Mexican season.

Last season’s growth, Chris tells me, will be seen when this season gets into full swing. “We tripled our program last year and are in continued growth mode this year with substantial volumes of product from both Hermosillo and Caborca growing regions. Continued development of this category has been an important part of our strategic plan. This enables our company to better serve our customers by meeting their needs in the grape category,” Chris says.

Once Seald Sweet gets into the peak harvest time frame, it anticipates promotional volumes of:

• Green Seedless grapes

• Red Seedless grapes

• Black Seedless grapes

• Red Globes

After things get rolling in May, the season is expected to run through the month of July.

AndNowUKnow will continue to keep in touch with Mexican grapes as they progress, as well as other Seald Sweet programs as they kick into gear, so stay tuned.

Seald Sweet

WATSONVILLE, CA – California Giant has announced that consumers can expect a new line of decadent desserts to satisfy their healthy and sweet-tooth cravings this month, thanks to a new partnership with Duda Farm Fresh Foods and Natural Delights.

Aided by vegan blogger Kathy Patalsky, who also authored Healthy Happy Life, the company plans to release nine new vegan-friendly desserts in a new e-book.

“We enjoy partnering with other companies and innovative bloggers like Kathy at Healthy Happy Life to create and distribute inviting recipes focused on the many different eating styles people have today whether by choice or for health reasons,” said Cindy Jewell, VP of Marketing for California Giant Berry Farms, in a press release. 

The nine new recipes will be imbued with fresh California Giant berries, citrus and celery from Duda, and the natural sugars found in Natural Delights Medjool Dates. Through Patalsky’s expertise, California Giant said that consumers can expect a sweet selection to satisfy vegans and non-vegans alike.

“My audience is not 100 percent vegan by any means, but they come to me for plant-based inspiration,” said Patalsky. “It feels like a perfect fit to bring fresh produce brands like California Giant, Natural Delights, and Duda to my readers in a valuable way, and we’ve done just that with the vegan e-books." 

California Giant said that it utilizes a consumer database to learn which communication preferences and recipes they want to receive. Through this consumer feedback, California Giant found that although consumers have a wide variety of eating styles, the need for continued recipe development and berry incorporation prevails, regardless of whether their diets are vegan based.

"I love working with brands that understand the power in directing their message to a specific audience and find my readers respond much more enthusiastically when content and recipes fit their niche preferences,” finished Patalsky.

Consumers can expect tasty options like peanut butter cookies, Meyer lemon poppyseed cake, and blackberry ice cream as part of the healthy food choices outlined in the e-book. In addition to circulating to followers of Duda, Patalsky, California Giant, and Natural Delights, consumers can find a free copy of the book here.

Continue to stay up-to-taste as AndNowUKnow keeps you covered on healthy options and announcements in the industry.

California Giant Duda Farm Fresh Foods Natural Delights

IRVINE, CA – California Avocado Commission is gearing up for an avocado-focused summer as California Avocado Month approaches in June, just in time for the fresh California Avocado season.

The commission expects high-volume holidays throughout the summer season, and has released a detailed selection of consumer menus by infusing avocados into a variance of signature dishes.

“The American Summer Holidays period from Memorial Day through Labor Day coincides with a time of peak California Avocado availability,” said Jan DeLyser, California Avocado Commission's Vice President of Marketing. “Foodservice operators want their menus to feature fresh, local produce and this now is a great the time for California Avocados.”

Avocados are taking the spotlight and splashing green into the following recipes: 

• Grilled Pineapple-California Avocado Salsa
• Crab and California Avocado Quesadilla
• California Mint Chip Whip

Consumers can find serving suggestions and nutritional resources here, and peruse a selection of liqueur, savory, confectionary, and fresh avocado ideas to add to their summer repertoire.

AndNowUKnow will continue to deliver your daily greens as seasonal updates progress throughout the summer.

California Avocado Commission

LAKELAND, FL - Todd Jones has begun his official month as CEO of Publix, and with it, has announced the company’s Q1 2016 financial report. In the report, Publix revealed that overall sales were up 4.5 percent over the same quarter last year, but the company’s stock price fell from $45.20 to $43.95 a share.

“I’m pleased that our Publix associates delivered strong results,” said Jones in a statement. “Unfortunately, these results were not enough to offset the challenges in the stock market.” Only Publix's Board of Directors and 179,500 employees are allowed to buy and sell the stock, which until Monday was trading at a record high, according to the Orlando Sentinel.

Publix’s sales for the first quarter of 2016 reached $8.7 billion, up 4.5 percent from last year’s $8.3 billion. The company estimates sales increased 1.2 percent due to the effect of the Easter holiday being in the first quarter of 2016.

Wegman’s recently beat out the retailer in a Market Force Information survey that polled more than 10,000 people, on which company earned the title of America’s favorite grocery store. The top spot went to Wegmans with Publix as a close second, scoring a 75 percent consumer loyalty rating.

Other highlights from Publix and Jones’ report: 

• Comparable-store sales for the first quarter of 2016 increased 3.3 percent
• Net earnings increased 6 percent to $581.9 million
• Earnings per share increased to $0.75 for 2016, up from $0.71 per share in 2015

This is the first quarterly report issued under new CEO Todd Jones. Former leader Ed Crenshaw retired last Friday after 42 years with the company and eight as CEO.

Publix

CARLISLE, PA – Giant Food Stores and Martin’s Food Markets’ have announced a big monetary investment in the fight against hunger in Pennsylvania, New Jersey, Virginia, and Maryland. During last month’s Bag Hunger campaign, Giant/Martin’s donated $632,620 to support local and regional food banks.

“We believe that everyone should have access to healthy, safe and nutritious food,” said Tom Lenkevich, Giant/Martin’s President, in a recent press release. “Our customers have also generously embraced this mission, and thanks to their ongoing support we are helping our regional food banks and local pantries feed our neighbors in need every day.”

Major recipients of the Bag Hunger campaign, include the following:

• Central Pennsylvania Food Bank
• Philabundance
• Second Harvest Food Bank of the Lehigh Valley region
• FeedMore - Central Virginia Food Bank
• Greater Berks County Food Bank
• Water Street Rescue Mission in Lancaster, PA
• Maryland Food Bank – Western Branch
• The Blue Ridge Area Food Bank in Virginia

In 2015, the company said that $12.3 million was donated to approximately 100 total hunger relief agencies throughout the year. These donations were in part realized through the company’s Meat the Needs program, which delivered over one million pounds of safe, nutritious meats to families in need.

Giant/Martin’s said that it plans to hold a second Bag Hunger campaign in September for Hunger Action Month, and will secure more donation funds through customer, vendor, and corporate support.

Count on AndNowUKnow to deliver reports on how industry retailers affect their surrounding communities, as we continue let the new industry news out of the bag.

Giant Food Stores Martin's Food Markets

REEDLEY, CA - Nestled in the fertile agricultural region of the Central Valley, Valliwide Marketing represents farmers who care about the health, welfare, and environment as well as the fruit they bring to retail community and ultimately the consumer. As we move through the spring months and look toward summer, these stewards of the land are gearing up for one of the most anticipated times of year for fresh produce, California’s stonefruit season.

Valliwide is a marketer for organic fruit and this year the company will be kicking off the season with several varieties, and main volume on the horizon slated for mid-May. Bill Schene, Mason Parkinson, and Owner Tod Parkinson, took a few minutes from their busy day to discuss the upcoming stonefruit  season with me, and what we can expect from Valliwide’s growers.

“We will be harvesting in Reedley, California, beginning with Honey May yellow nectarines and then moving right into Polar Lights white nectarines and Zee Fire yellow nectarines,” Bill tells me as we talk about the varieties that will begin the program.

The company also offers an apricot variety called the Westcot, with a focus on differentiating the early-season categories in produce departments. Valliwide will then move into white and yellow peaches and then into the plum crop, which starts around June 1st. 

“This year it looks like there will be good volume and a good set. Plums will come in at about the same volumes as last year,” Bill says. “At this point we anticipate promotable volumes throughout the summer. We invest in our crops every year in an effort to bring the right sizes and great quality to our retail partners.”  

At Valliwide, the team is constantly looking to enhance and upgrade its ranches so the company can offer the best tasting varieties.

“Flavor is a big thing for us and is a focus throughout all of our programs as well as picking our fruit at the proper maturity levels,” he adds. “We take great care in the product we bring to market.”

Valliwide represents quite a wide range of farm sizes from smaller two-acre operations to 150-acre ranches. Valliwide’s California stonefruit season runs consistently into end of August. 

Owner Tod Parkinson and his wife Traci own the operation that Valliwide is today. Todd has been growing fruit most of his life and began to represent his first organic farmer in 1999. Traci joined the business in 1994 and enhanced the program with office and financial management skills from her years in the banking industry. Both Tod and Traci are deeply invested in the growers they represent and the need for organic farming, flavor, and quality.

“I grew up in Reedley, and all throughout high school I worked in both the fields and the packinghouse,” Tod tells me. You can tell, California growing is in his blood. “Our evolution came about six years ago when we shifted our program 100 percent to organics. A lot of growers were looking for a niche at that time and organics were growing in popularity. It was one category we truly felt would have staying power.”

As the company ramps up for its California stonefruit season, retailers can look forward to promotional opportunities with the growing demand for this popular category of fresh fruit.

Valliwide markets its organic program under its Valley Pride, First Fruits, DE Boldt, and Red Raven labels.

Valliwide Marketing