California Unveils Strictest Pesticide Rules in the United States



CALIFORNIA – California now has the nation’s strictest rules for pesticides after a change that was designed to protect farmworkers and people who live and work new agricultural fields.

According to CBS News, these new restrictions target chloropicrin, a pesticide that can be injected into the ground before planting crops like strawberries, tomatoes and almond orchards. These new regulations are even stricter than the standards required by the U.S. Environmental Protection Agency.

Under this new rule, farmers are limited to applying the pesticide on up to 40 acres in one day. That represents a reduction of 75% of the previously approved amount.

Officials say that the rule will also expand the distance between fields and human activity. In some cases, that could double the current distance. Farmers who use upgraded tarps to cover their fields while applying the pesticide, however, can follow less stringent regulations.

What will this mean for costs?

Brian Leahy, Director of the California Department of Pesticide Regulations, told CBS that the higher standards are needed in California. As far as costs, he added that costs are sure to rise for farmers and consumers, but that it will be worth it.

According to KCRA, the state has been in talks with growers for over a year about the new standards and will immediately begin to implement them, with full compliance required by 2016.

Stay tuned to AndNowUKnow as we continue to follow this story.


Calavo Sets New Fiscal Record in Q4 2015 Financial Report



SANTA PAULA, CA Calavo Growers enjoyed a record-breaking performance during fiscal 2014, setting historic highs in key metrics such as adjusted annual earnings per share. The gains of the year gave the company the confidence to predict additonal new records for 2015, both in terms of revenue and earnings per share results.

Lee E. Cole, Chairman, President and CEO “In sum, it was an outstanding final quarter and year for Calavo as measured by our formidable results from operations,” shared Chairman, President and CEO Lee E. Cole. “Our company posted strong final-quarter results to cap a record-breaking fiscal 2014, during which all important metrics reached new historic highs. Of particular note, Calavo’s operating performance in the most-recent period reflects the beneficial impact of sourcing and marketing Mexico-grown avocados, which improved Fresh business segment gross margin and counterbalanced the cyclically smaller harvest of California fruit.”

“We registered sharply improved gross margin in our Calavo Foods business segment—a result of favorable fruit and production costs, as well as significant year-over-year improvement in segment sales—which further contributed to the uptick in overall company gross margin,” he continued. “Finally, sales in the RFG business segment rose by more than 31 percent in the most-recent quarter. RFG continues to execute impressively—penetrating the retail grocery channel with its broad line of refrigerated fresh packaged goods. Its operating performance made significant incremental contribution to Calavo’s top and bottom lines during fiscal 2014.”

Some highlights from Calavo's Q4 results include:

  • Revenues of $200.7 million compared to $190.7 million from the same period last year.
  • Gross margins of $19.4 million compared to $17.4 million from the same period last year.
  • Net losses of $0.2 million.
  • Static earnings per share numbers equal to $0.38/share.

Some highlights from Calavo's full year financial results include:

  • Revenues of $782.5 million compared to $691.5 from the same period last year.
  • Gross margins of $73.0 million compared to $60.1 million from the same period last year.
  • Net income of $0.1 million.
  • Adjusted annual earnings per share of $1.45/share compared to $1.11/share from the same period last year.

Going forward, the company is forecasting double digit revenue and gross profit increases in addition to 20% gains in the same categories for the company's RFG business segment. According to a press release, U.S. avocado consumption is expected to rise 20% to a minimum of two billion pounds.

“With our avocado market leadership—strong sourcing capabilities, sales and distribution expertise, and the vast breadth of resources Calavo brings to bear—we will be beneficiaries of the upward consumption trendline,” Cole explained. “The consistently large Mexico crop, an expected resurgent California avocado harvest, which adversely affected the all-source fruit supply last year and, most importantly, strong consumer demand, all point to a brightening picture for fiscal 2015.”

Stay tuned to AndNowUKnow as we continue to track Calavo's future business plans and economic performance. 

Calavo


Earthbound Farm Launches New Magazine-Style Website



SAN JUAN BAUTISTA, CA – Earthbound Farm has launched a new, completely redesigned and food-forward website.

Samantha Cabaluna, Vice President of Communications and Marketing, Earthbound Farm

“This website offers a richer environment for Earthbound’s consumer and retail communities,” says Samantha Cabaluna, VP of Marketing and Communications, Earthbound Farm. “We’re delighted with its aesthetic appeal.”

It features original photography and a rigorous publishing schedule to ensure that content will be continuously refreshed. According to a press release, this new site will be fully responsive and provide an optimal viewing experience regardless of what device you are viewing it on.

The brand also promises to grow “bigger smiles,” “sustainability,” “eats for all appetites” and more. The new site reflects Earthbound’s brand culture and its story and products while celebrating the company’s more than 30-years of leadership in the organic food revolution, according to a press release.

Samantha added, “The site is built around what visitors want from us – and that’s to be a resource for healthy living with a focus on enjoying the food we grow. We’re offering all the expected essentials – product information, recipes and details about the company’s history and values – but it’s the relevant, useful and beautifully presented content that truly differentiates Earthbound’s new site.”

The new site will also feature friendly, engaging and compelling content for users pursuing a healthy, organic lifestyle. The company’s wide-ranging recipe collection will feature not only strong visuals, but also an extensive database that is searchable by type of dish, dietary restriction, cuisine and occasion.

Another feature on the site is Earthbound’s web-based magazine, Organic Bound. It offers product coupons, recipes, cooking tips and practical information about organic as well as content developed by Earthbound’s internal contributors and content from partners like dietician Ashley Koff, RD. and popular food bloggers.

Earthbound Farm


Allen Lund Company Announces Donation to Susan G. Komen Foundation



LA CAÑADA FLINTRIDGE, CA – The Allen Lund Company (ALC) is starting off 2015 by paying it forward for a good cause.

The ALC, Los Angeles sales office has donated $2,500 to the Susan G. Komen Foundation, according to a press release.

In a message to the Foundation’s Los Angeles Office Manager, Tracey Lewen, the company stated, “We are very fortunate to be able to ‘pay it forward,’ and help sustain your cause as you continue your efforts.” 

The message continued, “We feel that the work you do is so very important; and even more significant because many of us here in our office have had personal experience with the devastation of breast cancer.”

Every year, the ALC, Los Angeles Sales Office donates part of its yearly profit to a charity of its choice.

We would like to thank the Allen Lund Company for donating to this worthy cause.

Allen Lund Company


Pacific Coast Fruit Company Co-Founder Emil Nemarnik Passes Away



Emil Nemarnik, Co-Founder of Pacific Coast Fruit and industry patriarch, has passed away.

A Croatian immigrant, Emil was the only one of 12 children to be given the opportunity to begin a new life in the United States. After immigrating at the age of 10, he quickly displayed the traits that allowed him to rise through the ranks of the produce industry.

Emil worked in a grocery store to pay his way through college. There, he met his future wife, Kathleen Spada, and began his career in the produce industry. After graduation, he went on to broker, sell, and buy produce until 1976 when the company he worked for was sold and he was laid off. At the age of 50, he faced the daunting prospect of supporting five children without a job. Drawing on a career of experience in the industry, he took a risk and pulled together the money to found Pacific Coast Fruit. The company opened its doors in 1977 and grew from the smallest produce distributor in Portland to one of the largest independently owned produce distributors servicing the Pacific Northwest.

Emil was often quoted as saying “take good care of your employees, customers, shippers and farmers and they will make you successful.” I am sure those who loved him will reflect often on these words as they go through these difficult times.

AndNowUKnow would like to extend its heartfelt condolences to Emil's friends and family.


Target to Close All 133 Target Canada Stores



MINNEAPOLIS, MN – Target is moving to close all 133 of its Canadian stores. CEO Brain Cornell shared that despite the “tireless work and determination” of Target's Canadian team, Target Canada was unlikely to become profitable until 2021 at the earliest. In light of that timeline and after disappointing holiday retail numbers, Cornell came to the conclusion that it was in the retailer's best interest to close the operation in its entirety.

Brian Cornell, Chairman and CEO, Target Corporation

“Simply put, we were losing money every day,” Cornell shared on Target's blog, A Bullseye View. "After consulting with many leading third parties and carefully weighing the realities of the situation facing us in Canada, we decided that Target Canada would file for what is known in Canada as the Companies’ Creditors Arrangement Act (CCAA). It was the best option available to enable us to wind down our operations in Canada in a fair and orderly way.”

“We conducted a very comprehensive review and evaluated every possible option in Canada,” he continued. “Ultimately, after extensive internal due diligence and research, paired with counsel from outside experts, we fulfilled our obligation to do what was right for our company and our shareholders, and made the decision to exit Canada.”

Expanding too quickly had overextended Target's supply and support networks, leaving many stores with inventory issues and with numerous pricing issues. Even as Target's team worked to make improvements and correct some of these problems, challenges remained and customer perception of Target's Canadian brand suffered.

“We missed the mark from the beginning by taking on too much too fast,” Cornell explained. “Our stores struggled with inventory issues and we were not as sharp on pricing as we should have been, which led to pricing perception issues. As a result, we delivered an experience that didn’t meet our guests’ expectations, or our own. Unfortunately, the negative guest sentiment became too much to overcome.”

According to Kevin Sterneckert, Chief Marketing Officer for Order Dynamics, Target also underestimated the sheer diversity of the Canadian consumer base.

"A major issue in Canada is geography," he explained to USA Today. "The nature of the consumer in Canada changes dramatically depending on what region of Canada you're in."

According to CBC, Target has named SVP and Treasurer Aaron Alt as CEO of Target Canada, tasking him with the duties of overseeing the company's wind-down operations. International consultancy company Alvarez & Marsal has been hired to assist with this liquidation process.

In order to support its team during this difficult transition, Target has established a C$70 million trust, to provide “nearly all Target Canada employees with a 16 weeks of wages and benefits coverage.”

Investors reacted favorably to this news, driving up the company's stock $2.97/share to $76.99/share at the market's open on Thursday, January 15th, 2015.

Stay tuned to AndNowUKnow as we continue to track this situation as it develops.

Target


LINKFRESH and Hitachi Solutions Partner with The Fresca Group



VENTURA, CA – LINKFRESH and Hitachi Solutions have joined together to deliver LINKFRESH SRP on the Microsoft Dynamics AX platform to The Fresca Group.

This service is expected to deliver major benefits across the business in finance, operations and commercial.

Fresca Group is the U.K.’s largest independent fresh produce organization with sales in excess of $750 million, according to a press release. The companies in the group have differing fresh produce interests, from grower to wholesaler on the full supply chain, importer to ripener and packer to logistics expert.

“We selected LINKFRESH and Hitachi Solutions because their expertise combines the Microsoft AX suite of programs with the best industry-specific software, supported in its deliver through a leading systems implementer. Once the team has deployed the system, all core processes will be managed together – improving reporting, eliminating manual intervention and reducing costs,” says Mike Musk, Group Finance Director at Fresca Group.

This multi-million dollar investment is codenamed Project Compass and will deploy the complete LINKFRESH ERP suite to approximately 800 users across multiple locations in four core Fresca businesses – Mack, MMG CITRUS, DGM Growers and Thanet Earth Marketing.

Nikki Scarr, LINKFRESH COO, said, “We are very excited to be deploying our LINKFRESH ERP solution for one of the U.K.’s leading fresh produce organizations who are a major part of the fresh food chain in Britain and beyond. The fresh food industry expertise and Microsoft Dynamics AX software development skills of our LINKFRESH team, in partnership with the world class project implementation experience and methodologies brought by Hitachi Solutions, will deliver a winning combination to ensure a successful deployment.”

The LINKFRESH and AX solution is being implemented for Fresca by Hitachi Solutions. That company was selected because of its process driven implementation approach and experience with large scale Microsoft Dynamics AX deployments.

LINKFRESH

The Fresca Group


Snack Feature: PRO*ACT's Max Yeater - From the Field to the Boardroom



In the latest edition of AndNowUKnow’s print publication, The Snack Magazine, we spoke with PRO*ACT's President Max Yeater, exploring the dynamic distribution company's latest ideas, initiatives, and much more. Check out The Snack article by clicking here, or read the full article below:

From the Field to the Boardroom

“I’d like to say it’s about working smarter not harder. But, my first experiences in this industry were born from hard work. It’s essential,” Max Yeater tells me. “I try and lead by example by showing people that I’m willing to get down and dirty. It is all of us in this together. Everyday.”

“My mom taught me the importance of hard work. She was a single mom, raising 2 kids. She sold her house so we could go to college. My mom has been my main influence and now being a parent, I understand what a wonder children are and the value of sacrifice and hard work. My son and daughter have changed my outlook,” Max smiles. “I wouldn’t have it any other way.”

Max has come a long way since his days as a bird dog working in Salinas, California. The industry veteran began with his feet in the fields as a produce inspector and now calls his most recent role home, as President of the distribution giant, PRO*ACT. I sat down and spoke with Max and listened to his journey from the beginning, where the roots took hold.

“From the beginning I have always had a fascination with the business. I knew I was destined for produce,” Max tells me. “Even in those early days, I knew I was building a foundation to succeed in the industry.”

Max Yeater

Max came into PRO*ACT 3 years after the company was established in 1991, and with the strength and determination of the PRO*ACT team, the company has grown from a network of 6 distribution partners to the 50 it has today.

“I have been fortunate enough to be a part of our strategic growth as a company, while witnessing us come into our own,” Max notes. “When I first got on the desk buying produce, I’d call different suppliers in the industry. They’d ask ‘Pro-what?’ But, today the industry sees our value,” he laughs.

As the company continues to evolve, PRO*ACT is taking its value proposition to the next level by making the move into retail distribution.

“Our distribution network is uniquely positioned with our ability to reach 100% of the major North American markets, and to respond to the demand from retailers for fresher product,” Max reflects. “We have 50 independent local companies bringing 50 great entrepreneurial ideas to the table. Pulling this program together and creating what we’ve created is nothing less than amazing. It’s our #1 value to the entire value-chain. To have that for a supplier, for a fresh manufacturer, is worth its weight in gold.”

PRO*ACT has 3 different types of customers that make up its PRO*ACT Value Chain - distributors, suppliers, and end users. PRO*ACT’s value comes in its ability to get products to every major market and providing those distribution services for suppliers.

“The power of the network is our ability to bring together different facets of the industry and lead them towards the future,” Max notes.

While fresh produce has always been the perishable of choice for PRO*ACT, the company has expanded into other fresh products to bolster the retail initiative.

“We have some great minds here,” Max tells me. With a senior executive team that is passionate and creative in their thought processes, it’s no wonder PRO*ACT continues to raise the bar. “We look at every idea like it’s a good idea and it helps us better the business and the work culture. I know that I want to work at a place that I look forward to coming to everyday. It’s important to me that everyone here feels the same.”

Max Yeater

“I’ve sat in their seats and I understand the challenges they go through. We still have a job to do, but I say let’s have a really good time doing it. Create a good culture and you create a good team environment,” he smiles.  

Demand from the consumer has also changed, he tells me, and we are changing to adapt to the evolving consumer environment. “Today’s consumers want the ‘who, what, when, where and why,’ of their fresh produce. They want the knowledge behind product sourcing and how the item is delivered, packaged, and presented,” Max notes. “As the dialogue between the consumer and retailer changes, retailers are looking for different channels for delivering fresh product.”

Through PRO*ACT’s Greener Fields Together initiative, in-hand with its 70 distribution locations, the company has been able to address challenges ranging from locally-grown demand and logistics, to organic produce growth, and availability. Greener Fields Together is a collaboration of environmentally responsible parties, including farmers, distributors, retail locations, and foodservice operators, who have come together to make steady, measurable improvements in sustainability and food safety practices through all levels of the produce supply chain. The unique capabilities of this initiative alone, offer the industry a resource for enhancing their sustainability platforms and communicating their efforts to the consumer.

The company has spent more than 20 years tirelessly building its distribution network, allowing the company access to customers 6 to 7 times a week, where other channels typically cannot. As PRO*ACT continues forging ahead in both the foodservice and retail industries, the company hopes to continue building its distribution network while also staying true to its roots and drive towards innovation.

PRO*ACT

“It is an exciting time for us as we move forward and further advance our North American business strategy,” Max states. “As we continue to align with the goals of our foodservice and retail partners we will always be looking for that next opportunity to develop their programs and enhance our own.”

It isn’t hard to see that the PRO*ACT crew continues to bring a unique and beneficial culture to its organization, capabilities, and collaborations.

“Work hard, play hard,” Max tells me.

I couldn’t have said it better myself.


Wall Street Considers the Possibility of a Target Exit from Canada



MINNEAPOLIS, MN – Is Target considering saying “sayonara” to Canadian retail? In light of the difficulties it has encountered in this venture, speculation has abounded in investment circles as to the possibility of a store sale.

Brian Cornell, Chairman and CEO, Target Corporation

Optimism was high at Target approaching the holiday season. After early signs of improvement in its Q3 2014 financial report, Chairman and CEO Brian Cornell commented, “In Canada, we’ve made improvements to our operations, pricing and assortment in time for the holiday season, and we’re eager to measure how our guests respond. The entire company is energized as we approach the peak of the holiday shopping season, and we are looking forward to delivering an outstanding store and digital experience to our guests.”

Canadian retail segment sales had risen 43.8% compared to the previous quarter. While an abundance of work remained, some analysts began to speculate Target had begun to turn a corner in Canada.

Recent analysis from The Street of Target Canada's holiday performance is far more bearish. Analysts predict a 20% gross margin for Target Canada, well short of the company's goal of 28%. Anecdotal evidence quoted by The Street also notes Target's continued logistics difficulties.

Noting the personal and professional ties between Cornell and Wal-Mart's President and CEO Doug McMillon, The Street's Brian Sozzi speculates that a store sale may be in Target's future. The precedent for this move has already been established with Target's transfer of 39 store leases to Wal-Mart during the company's initial Canadian expansion. In addition, Wal-Mart already operates 391 stores in the region and has the necessary logistics capacity to support the broad swath of Target stores it would be purchasing.

For now, however, these suspicions remain firmly rooted in the realm of the “what if?” Should concrete evidence of Target's plans emerge, however, you can count on AndNowUKnow to bring you the news first. Stay tuned.  

Target


Wish Farms' Owner, Gary Wishnatzki, Discusses Florida's Freezing Temperatures



PLANT CITY, FL – It has been cold in the Sunshine State, but Wish Farms’ Owner, Gary Wishnatzki, tells me that the recent Florida freezes have actually been a good thing.

Gary Wishnatzki, Owner, Wish Farms“We haven’t had any issues with the cold at all. In fact, a short dip into freezing temperatures like we had last week can actually help to keep the quality and sugars up in the berries,” Gary tells me. “Of course, our growers have freeze protections like covers and overhead irrigation prepared if the temperatures were to ever hit a hard sustained freeze. Luckily for us, that was not the case.”

That is good news for Wish Farms with berry demand ramping up for Valentine’s Day. Gary says that production started a bit behind, but it has caught up and is looking good across the board.

“Volume is currently equal to last year’s numbers and should be increasing even further through the end of the month. We are anticipating great production numbers moving forward,” Gary says.

In terms of quality, Wish Farms is seeing optimal berries. For real-time information on quality, the company is currently conducting a traceability survey through its “How’s my picking?™” consumer promotion.

“We are getting about 100 surveys a day from consumers, and it is overwhelmingly positive with very few quality issues. It is always great to hear from the consumer to know what we are doing works,” Gary adds. “We also put resources into forecasting production with bloom count models. All of this gives us good information that we can pass on to retailers.”

Check out the video below for a deeper look at the “How’s my picking?™” promotion:

Looking to the future, Gary tells me that Wish Farms has very promising varieties on the horizon and to stay tuned. 

Wish Farms