CINCINNATI, OH - On the heels of multi-hundred million dollar investments in both Tennessee and Michigan, Kroger is making another big move into Florida. Not through its traditional grocery stores, however, but under its newly minted partnership with Boulder, CO-based natural foods retailer, Lucky’s Market. 

Under its partnership with Kroger, Lucky’s is planning to open seven new stores in Florida this year, bringing its total to ten Florida locations, according to a report by the Cincinnati Business Courier. 

Currently, Kroger itself has just one Florida location—a store near Jacksonville that was acquired through its purchase of Harris Teeter two years ago. The current market dominator in Florida is Publix, but analysts see this move by Lucky’s as a way to take on some of that market share.

Jim Hertel, Senior Vice President of Long Grove, IL-based food retail consultant, Willard Bishop, told the Cincinnati Business Courier, “With Lucky’s, they’re exploring more niche audiences. Going from three stores to ten, they must have some confidence in how well Lucky’s can do there. It’s more than just testing the brand.” 

Lucky’s, which only currently has 17 stores in 13 Midwestern and Southeastern states, plans its Florida stores for markets like Orlando, Melbourne, Neptune Beach, and Plantation, among other markets. The company currently operates stores in Naples, Gainesville, and Coral Springs, FL.

AndNowUKnow will continue to cover the increasing competition in the Florida retail market, so stay tuned for more.

Kroger Co Lucky's Market

SHEERNESS, ENGLAND – The crime world has infiltrated the produce industry once again, this time, through a shipment of bananas. A large, illicit deposit of cocaine was found by authorities at the Port of Sheerness in England, weighing over 38 kilos, or about 83 pounds. 

The banana shipment was seized on Thursday, after arriving on a ship from Panama over the weekend. Authorities value the hidden cocaine harvest at more than £1.5 million, which equates to roughly $2,187,450 USD. 

UK law enforcement said in a statement that tests are currently being performed to establish the purity of the cocaine haul, which will provide a more accurate number as to the drugs’ value. 

According to Kent Online, authorities said that they are pleased that the shipment was intercepted before it could move forward and into the public. "This detection demonstrates the crucial role Border Force plays in keeping dangerous drugs off the streets of the UK,” said Border Force Assistant Director Mark Kennedy in a statement.

The Sheerness port is no stranger to the seedy side sometimes seen in the agriculture and shipping containers which pass through its territory. Earlier this month, Kent Online reported that authorities found over 260 pounds of liquid cocaine in five refrigerated fruit containers at the docks.

"We are determined to do all we can to stop drug smugglers and work with law enforcement partners to bring those responsible to justice," finished Kennedy. 

As we’ve previously reported, Class A drugs hitching a ride to shipments of produce seems to be a growing international trend as traffickers explore ways to push their product. A trend which authorities appear to be matching in a careful eye on fruit and vegetable shipments.

Check back with AndNowUKnow as we keep an eye on the battle of fruits and contraband within the industry.

DAVIS, CA – Competitive intelligence company Engage3 and price strategy consulting firm Price Revolution, LLC, recently announced the commencement of a new reseller partnership. Together, the two companies hope to leverage improved data capturing and sales planning resources to provide retailers with improved price image, profitability, and ROI of their pricing programs.

“Competitive intelligence should be a part of every retailers’ pricing strategy,” remarked Mark Kelso, Managing Partner at Price Revolution, in a press release. “Retailers who use competitive shopping in their strategic arsenal know that accuracy and timeliness are critical to delivering prices that resonate with their target customers. Engage3 transforms scheduling and executing competitive shopping intelligence from difficult to seamless, delivering accurate and timely information to retailers.”

The partnership will allow Price Revolution to resell, deploy, implement, and support Engage3’s competitive intelligence platforms, including MissionControl. The companies said that MissonControl corrects issues of inconsistency and inaccuracy in the data collection process, improves data collection turnaround time by 40 percent, and improves overall visibility by a factor of ten. Together, Engage3 and Price Revolution aim to provide holistic solutions for retail pricing strategy.

“Price Revolution has a strong track record of leading successful price optimization implementations and of designing and executing retailers’ pricing strategies,” commented Edris Bemanian, COO at Engage3. “Combining their price management expertise and Engage3’s cutting-edge competitive intelligence technology will enable retailers of all sizes to not only gain visibility into their competitors’ pricing and assortment strategies, but to execute actionable insights provided jointly through the partnership.”  

Optimize your industry insight strategy by partnering with AndNowUKnow.

Price Revolution, LLCEngage3

BOULDER, CO - Tractica released a report earlier this year on new developments in robotized farming, including some new hardware that promises to improve yields and cut back on production costs. Soon, driverless tractors and drones could sow and grow food for the global population.

The newest entrants in automated ag, driverless tractors, are already making new strides. According to a report from Enterprise Tech, driverless tractors are programmed to navigate fields and automate a range of farming processes. Furthermore, driverless tractors with limited autonomous capabilities could become increasingly prevalent in lower-end tractors, creating a spectrum of autonomy (and affordability) available to small and large growers alike. Tractica predicted driverless tractors will be affordable in about ten years.

“Driverless tractors are in the early stages of commercialization,” said Clint Wheelock, Tractica Managing Director and Co-Author of the report, in an interview with Enterprise Tech. “Up to this point [they] have been in the prototype stage. With that said, we expect that the next few years will be a time of significant growth for this category, with approximately 500 unit shipments in 2016 – marking the beginning of true commercialization – about 1,600 units in 2017, and more than 4,100 in 2018.”

We reported earlier this month on the rise of drones in agriculture. The simplicity of use, integration with data analytics, and capacity for precision plant care has made drones an increasingly popular choice among growers, according to Tractica.

“UAVs enable farmers to use chemicals and water on the crop more judiciously,” Tractica reported. “Apart from regular growers, aerial surveys are in demand by seed and fertilizer manufacturers to boost their sales by doing a free aerial analysis of customers’ farms. Despite regulatory restrictions on the use of agricultural drones in some regions, the sector is attracting more money and becoming more crowded every day.”

Even more surprising than the surge in robotized farming is the corresponding market value. Tractica projects the ag robot industry to be worth $73.9B in revenue by 2024.

Too busy and tired to keep up with the headlines? Let AndNowUKnow automate the process - we’re programmed to deliver only the finest produce industry news.

SAN ANTONIO, TX – Retailers and foodservice providers alike have a lot to look forward to in the recently expanded list of new products from Ippolito International.

Dan Canales, Senior Vice President of Sales, Marketing, and Processing at Ippolito, took a few steps away from the company booth at Viva Fresh to give us the exclusive. 

First up? The new Brussels sprouts pouch packs in the following sizes and arrangements, specifically for retailers:

• 12oz shaved
• 1 lb gourmet
• 1 lb whole Brussels sprouts

“In addition to our retail line,” reveals Dan, “we’re also going to be launching our shaved, our gourmet, and whole Brussels sprouts in foodservice packs.”

The company’s plans don’t stop there, however. Hear what else Dan had to say about the company’s growth and value-added arrangements in the above video…

Ippolito International

SAN ANTONIO, TX – This year’s Viva Fresh saw the unveiling of many new products and programs, and Triple H Produce was no stranger to this innovation. The company used the venue as a launching pad for its newly announced Safe Agriculture for Food Excellence (SAFE) program.

The company’s Vice President of Operations, Heriberto Vlaminck, presented on the program, which Triple H cultivated over the past 15 months. Developed in partnership with Tecsia®, a food safety and social responsibility firm, the SAFE program consists of the following three stages: 

• Diagnostics: Food Safety Work Program
• Execution: Food Safety Assurance System
• Oversight: Full Compliance with FDS/FSMA Regulations

Vlaminck said in the presentation that this initiative embodies Triple H’s commitment to the well-being of the consumer, and spurs the industry towards using more preventative measures to detect risks. Currently, said Vlaminck, the industry relies on a traditional reactive model. 

Of the company’s associated growers, 20 production and packaging facilities are currently enrolled in the program, as well as three of Triple H’s U.S. border checkpoints. 

Emphasizing trust, visibility, control, and collaboration as key points of the program, Triple H said that all of its facilities and products will meet or exceed FDA/FSMA regulations by November of this year.

An expanded rundown of the SAFE program can be found here, and continue to depend on AndNowUKnow for the latest in safety assurance and forward industry-thinking.

Triple H Produce

BRAMPTON, ON - Loblaw Companies Limited has announced that the Toronto Stock Exchange (TSX) has accepted a notice filed by Loblaw of its intention to make a normal course issuer bid (NCIB), potentially signaling the company may repurchase as much as $1.2 billion worth of its own stock. 

According to a press release, the TSX filing allows Loblaw the option to purchase up to 21,401,867 of its own Common Shares during the 12-month period commencing April 28, 2016 and terminating April 27, 2017. This represents approximately 10% of the public float, by way of a NCIB on either the TSX or through alternative trading systems or as permitted by the TSX or under applicable law. 

The company maintained that as of April 18, 2016, Loblaw had 407,421,728 outstanding Common Shares, and based on the average daily trading volume of 611,683 during the last six months, daily purchases will then be limited to 152,920 Common Shares, other than block purchase exceptions. 

As of 4:00 PM EDT on April 27, Loblaw’s stock price was at $70.31 CAD, or $55.84 U.S.. If the maximum amount of shares were repurchased by Loblaw at this price, the result would be $1.504 billion CAD, or $1.195 billion U.S.. 

As the release continues, purchases of Common Shares will be made in open market transactions on the TSX or through alternative trading systems, and Loblaw may enter into forward purchase or swap contracts in connection with Common Shares which may be settled by physical settlement, cash settlement or a combination thereof. Loblaw may also purchase Common Shares through private agreements or share repurchase programs if it receives an issuer bid exemption order in the future permitting it to make such purchases.

Loblaw noted that decisions regarding the timing of future purchases of Common Shares will be based on market conditions, share price, and other factors, and it may elect to suspend or discontinue its NCIB at any time. Common Shares purchased under the NCIB will be cancelled or used in connection with the settlement of restricted share units or performance share units. 

AndNowUKnow will continue to update you on this potential major buyback plan as more details are revealed.

Loblaw Companies Limited

BRAWLEY, CA - Domestic cantaloupe season is here for Legend Produce. Today is the first day for the company to begin its harvest of its Origami cantaloupes.

“Rest assured, Legend Produce’s Origami melon will be the first harvested for the 2016 domestic cantaloupe season. ” Barry Zwillinger tells me. “We’ve increased our production and acreage significantly for this year solely because of the strong demand and growing preference for the Origami cantaloupe.”

This growth has been an ongoing trend for Legend Produce, Barry tells me, with the company increasing production every year since 2013 in a response to overwhelming demand. Legend has both increased and extended its contracts for Origami every year to build up volume. The company has also increased production with its growing partner in Maricopa, AZ, Santa Rosa Farms with earlier varieties and transplants for its melons.

“There is no other variety on the market that can match what Origami does,” Barry adds. “It’s a full slip western shipper, that provides an amazing aroma, high brix, a deep orange color, and a phenomenal flavor. Origami is a hearty melon with a small seed cavity that provides retailers with increased shelf-life and prevents spoilage on the other end from the consumer.”

The month of May is unique for Legend Produce, Barry tells me, because Origami is one of the only melons he’s seen that can be grown this early in the year without seeing the same spoilage that other early varieties see. The company grows Origami at all of its farms, including: 

• Brawley, CA
• Yuma, AZ
• Maricopa, AZ
• Huron, CA
• Mendota, CA
• Dos Palos, CA
• Los Banos, CA
• Woodland, CA

“You have the Caribbean off-the-vine cantaloupes that look good and have high brix, but the flavor and the aroma just aren’t there like it is in our western shippers,” Barry continues. “In-store testing has shown that consumers prefer Origami, and retailer sales data year over year confirms that. We have retailers that are only putting the Origami cantaloupe in their stores for the month of May.”

As Barry tells me, the Origami domestic harvest begins today! And you can count on Legend Produce to provide you with all your May cantaloupe needs this year and in the future.

Legend Produce

BRUSSELS, BELGIUM - Investors waiting for the implementation of the Delhaize/Ahold merger were awoken with good news this morning. Delhaize has released its Q1 2016 financial results, showing an over 400% increase in net profits as the company heads into its $29 million merger later this year.

“We have started 2016 with further improving revenue trends,” Frans Muller, President and Chief Executive Officer of Delhaize Group, commented in a statement. “We realized a robust performance in our first quarter profitability with a 3.6% underlying operating margin. Although the group benefited from a slightly stronger gross margin mainly in the U.S., profitability was especially boosted by lower SG&A as a percentage of revenues in Belgium and Southeastern Europe.” 

During this first quarter, ended March 31, Delhaize's net profit reached an impressive 109 million euros ($123 million), compared with just 28 million euros in Q1 2015. Total revenues for the company rose to 6.15 billion euros, up from 5.82 billion euros last year.

This undoubtedly has given investors even more of a reason to look forward to the impending merger with Ahold, which the company said is now its primary focus for fiscal 2016. Muller shared that Delhaize’s remaining major milestone is to receive approval from the U.S. Federal Trade Commission in order to be able to complete the transaction by mid-2016.

According to the release for Delhaize’s Q4, other highlights include: 

• Revenue growth of 4.3% at identical exchange rates
• Comparable store sales growth of 2.6% in the U.S. (3.7% real growth), 2.9% in Belgium, and 10.8% in Southeastern Europe
• Group underlying operating profit of €221 million (+26.0% at identical exchange rates)
• Group underlying operating margin of 3.6% (3.9% in the U.S., 2.7% in Belgium, and 4.1% in Southeastern Europe) 

Following the company's announcment, Delhaize's stock had risen more than 2%.

Will Ahold’s upcoming financial report yield similarly notable results? AndNowUKnow will continue to provide you with breaking retail and financial news.

Delhaize Group

KINGS CITY, CA - Rio Farms, LLC by Gills Onions has completed a large step in a key sustainability initiative gripping the industry. The company has completed a massive solar installation equivalent to powering more than 100 homes.

“Investing in solar is really an investment in our company and community,” David Gill, Partner at Rio Farms and Co-Founder of Gills Onions, commented, according to a press release. “We’re effectively locking in our electricity prices for the next few decades while simultaneously reducing our impact on the environment.”

The project was completed by Merced, California-based Cenergy Power, who installed the 1MW DC ground-mount photovoltaic. The company said that the system is expected to provide 1,761,508 kilowatt hours of solar power annually, offsetting about 86 percent of electricity used within 11 aggregated meters.

With the power to fuel 111 U.S. homes annually, it is a long-term investment that Rio Farms’ Partner thinks should continue to spread throughout the industry.

“Being able to independently produce power for our own use on our own land is a value I think a lot of farmers can and should embrace,” Gill concluded.

Rio Farms Director of Environmental Science, Jocelyn Bridson, commented on the multitude of benefits this addition to the company’s resources and tech will bring.

“The combination of continued tax credits and the CPUC’s Net Energy Metering aggregation program made it a good time to go solar,” Bridson said. “Meter aggregation is important as it makes it possible for farmers to put up one array and allocate it to many meters, reducing the need for many small arrays and interconnections which would both cost more and take up too much farmland.”

And when it comes to the company’s having chosen Cenergy, Bridson added that it came down to experience within the industry. “We wanted to work with Cenergy as the company has experience working with other large growers in the Central Valley.”

AndNowUKnow will continue to report as more and more growers look to incorporate cutting-edge technologies in a rising trend to be more sustainable.

Rio Farms, LLC