CHESHUNT, ENGLAND – Addition by subtraction is the the name of the game at the UK's largest retailer.

Tesco has announced plans to close 43 underperforming stores across the United Kingdom, over half of which will come from the retailer's Tesco Express format. BBC reports that plans to open another 49 larger format stores have also been shelved as part of this consolidation effort. In all, over two million square feet of development space is expected to be scrapped.

“This is about recognizing the financial reality of where we are as Tesco,” CEO Davis Lewis explained in an interview with BBC. “The 43 stores which we will be closing were unprofitable and not stores which we can see a way of making profitable. We do this with a huge and heavy heart because of the impact it will have on colleagues and the communities in which those stores are located, but we had to make the difficult decision that it was the right to close them.”

“This is a step in the right direction,” Lewis elaborated. “We have shown ourselves that the expertise that exists within the team at Tesco is as good and strong as it's ever been. But we're not at all kidding ourselves that we've in any way turned the corner. There's an awful lot more that we need to do. We'll continue to invest in our business, but we also need to make some tough decisions. Obviously, we've announced some of these today.”

This announcement is expected to affect a variety of regions throughout the UK, including:

• Fort William, Aviemore
• Crieff, Scotland
• Carryduff, County Down
• Armagh, Northern Ireland
• Bridgwater, Somerset
• Mablethorpe, Lincolnshire
• Sleaford, Lincolnshire

In all, Tesco has £250 million of cost cuts measures planned, which include closing its staff pension scheme, selling its Dunnhumby operation, and closing its longtime headquarters in Cheshunt, Hertfordshire. Going forward, its main office will move to Welwyn Garden City.

Stay tuned to AndNowUKnow as we continue to track Tesco's future retail moves.

Tesco

MORGAN HILL, CA - Long Shelf Life (LSL) is the latest hot produce trend to hit the growers of the San Joaquin Valley. Zach Wortiska, Assistant Western Product Manager for Melons, and Gattis Guffey, Sales Manager/Southeast Region and Watermelon and Melon Product Manager, sat down to explain how Sakata is leading the way with its new variety: Infinite Gold LSL.

“Infinite Gold melon is gaining a lot of attention due to the awesome combination of long shelf life holding ability and fantastic flavor,” Zach explained. “LSL melons provide benefits at all levels of the value chain. Growers are seeing the benefit from the holding ability. Plus, they are also saving harvest costs because they only harvest a LSL melon field two to three times, compared to a western shipper cantaloupe where a grower can be harvesting a field more than eight times. This is especially important due to labor shortages.”

“This characteristic gives the grower more flexibility as harvest time approaches,” Gattis elaborated. “With Infinite Gold’s longer holding ability in and out of the field, growers are able to ship high-quality fruit longer distances and retailers enjoy longer holding ability on the shelf...the consumer is receiving a high quality cantaloupe with excellent flavor. This means that the consumer will return for another purchase, which means the retailer is selling more!”

Going forward, Sakata is promoting awareness, education, and acceptance for this new product among retailers and growers alike. Previous attempts at a LSL melon by rival companies often lacked the strong flavor this new variety boasts, leaving a bad impression on the market for LSL melons, according to Zach and Gattis. Sakata shares, however, that it is up to the challenge of making the difference between its own offering and these failed varieties clear.

“One other thing to mention - Infinite Gold, like other LSL melons, looks a little different than traditional western shippers, not quite as tan colored,” Gattis added. “However, once retailers and growers understand that the difference is only skin deep and that the flavor and shelf life are really phenomenal – those issues just melt away.”

This awareness campaign includes the release of a new video, explaining to growers about the best time to harvest Infinite Gold melons. Check it out for yourself below:

In addition to Infinite Gold, Sakata is also working on other exciting new varieties such as Timeless Gold. Together with Infinite Gold, these varieties look like promising additions to the produce aisle and ones I will certainly be keeping my eyes on.

Sakata Seed America

DENVER, CO – Chipotle is offering free food, but there’s a catch. 

The restaurant chain is offering a free burrito, bowl, salad or order of tacos from January 27^th through February 28^th, 2015. It is not as simple as that, however. Customers have to order organic tofu Sofritas on Monday, January 26^th at any Chipotle in the U.S. or Canada and then present the receipt on the next visit in the specified time for the free food. 

Now, this is obviously great to hear if you are an avid Chipotle consumer like I am, but this is also good news for fresh produce consumption.

As we previously reported, Chipotle aimed to buy and serve more than 20 million pounds of locally grown produce in 2014, a 33% increase over the previous year. The chain increased purchases of locally grown bell peppers, cilantro, red onions, jalapeño peppers, oregano, romaine lettuce and tomatoes.

To increase the amount of locally sourced produce it sells, Chipotle has coordinated purchases with over 45 local farms across the United States so that none will be farther than 350 miles away from the location it is serving.

According to Chipotle, the company’s restaurants use 2 acres of organic cilantro every day as well as 7 million pounds of organic black beans and 1.2 million pounds of organic wheat every year.

This push for Sofritas could also provide a boost to the pepper industry. The dish is made with organic tofu from Hodo Soy that is braised with chipotle chilis and roasted poblanos.

It will certainly be interesting to see if Chipotle will continue the trend of increasing the amount of fresh produce that it buys from farmers and then serves in its restaurants. 

Chipotle

SAN MARCOS, CA - IFCO's former Retail Account Manager John Freitas has joined Fresh Origins, a microgreens and edible flower producer, as the company's new National Sales Manager.  

He will be responsible for promoting Fresh Origins’ products through its extensive distributor network supplying the nation’s finest restaurants, according to a press release. His first order of business will be building upon the successful launch of Fresh Origins’ consumer brand: BrightFresh™ Microgreens.  

John’s thirty years of experience building brands and creating winning solutions for retailers will no doubt be a valuable asset for the company.

AndNowUKnow would like to congratulate John on his new position!

Fresh Origins

NEWARK, DE - With 2015 in full swing, PMA is inviting fresh produce industry members to look back and reflect on the successes of 2014 with its new “2014: A Year of Working Together” infographic.

"This year, with the help of volunteer members and industry leaders across the fresh produce and floral supply chains, we've reached some amazing milestones," PMA shared. "It's proof that when we work together we can accomplish great things. From the roll-out of eat brighter!™ to the launch of new technology resources, PMA has committed to focusing on areas that you've told us are important for your business."

Check out the full infographic for yourself by clicking on the image below:

The infographic caputres the best of 2014, highlighting the eat brighter!™ campaign, new science and technology, the PMA Foundation's efforts to foster young industry talent, and some of the biggest issues facing its leaders.

My favorite takeaway from PMA's publication? The produce industry donated over a quarter million pounds of fresh produce to food banks in 2014 through PMA's partnership with Feeding America. That is certainly an achievement worth celebrating!

Great work this past year, PMA!

PMA

GLENDALE, WI – Maglio & Co. has completed a successful new product pilot program that evaluated their patented, retail watermelon bags.

The company has partnered with a national retailer for the last three months to test the bags in 300 stores across a substantial cross section of the U.S. market.

According to a press release, melon sales with the offering were strong, even in the late fall and early winter season, which confirmed the strength of the value proposition to the consumer. The test was so successful that the National Watermelon Association gave it a full endorsement.

“We are so pleased that consumers are responding so favorably to this product line,” said Sam Maglio, President of Maglio & Company. “We knew that there was tremendous opportunity to introduce innovation into the watermelon category and began exploring this packaging design over a year ago. After many iterations and tests, we were certain that we landed on a solution that consumers would find incredibly valuable. After seeing how well the pilot test has done, we are even more excited to introduce this product line to all of our retail partners.”

The program included two gusset bag designs custom sized for ¼ cut and ½ cut sliced watermelon. They feature a large window area to allow consumers easy viewing of the quality of the fruit before purchasing.

The patent pending design of the bags utilizes special properties of the bag film to keep the fruit fresh for a longer period of time – up to 11 days from the date of cutting and packaging versus the 3 days with conventional plastic overwrap.

Along with the extended shelf-life, this packaging benefits consumers with a carry handle, a compact, resealable storage bag to use at home and the ability to purchase only the desired amount of watermelon. The benefits to retailers include the elimination of wet and unsanitary displays, lower labor rates and lower shrink rates with each piece being 100% saleable upon arrival.

With the announcement of the successful product test, Maglio is making plans to roll out the current program to multiple retail formats utilizing strategically located fresh-cut facilities. The company is also working on a proprietary extension to the product line.

Congratulations on the successful test, Maglio!

Maglio & Co.

BAKERSFIELD, CA – A federal appeals court ruled that POM Wonderful LLC can try to stop a rival from selling a pomegranate-flavored energy drink labeled “pom.” This ruling is a reversal of a lower court ruling in the trademark lawsuit.

Reuters reports that the lower court ruling by U.S. District Judge Margaret Morrow said that POM was unlikely to show that shoppers would be confused by the rival products and was unlikely to succeed.

The federal appeals court said that Morrow erred in ruling that the public was unlikely to be confused between POM Wonderful’s “POM” trademark and the use of “pom” by Pur Beverages of Pennsylvania, according to Bloomberg. 

“The district court’s likelihood-of-confusion finding leaves us with the definite and firm conviction that a mistake has been committed,” Circuit Judge David Ebel wrote.

He then directed Morrow to consider if POM deserved a preliminary injunction because its absence might cause irreparable harm to the company.

Reuters quotes Joseph Klapach, POM’s lawyer, as saying the decision recognized “the extremely broad rights associated with POM’s nationally know character mark. This is an important ruling that will protect trademark owners and consumers alike.”

Congratulations on this victory, POM!

POM Wonderful

PHOENIX, AZ – Sprouts Farmers Market is at it again.

This fast-growing retail chain announced plans this week for ten new store locations spanning just as many states. Most importantly, this expansion will mark the first time Sprouts has established a retail presence in Missouri or Tennessee. The flagship locations will be the retailer's first steps into unlocking the vast consumer market housed in these two states.

Altogether the new locations are set to be constructed in:

• Fort Worth, TX - 6300 Waverly Way
• Hoover, AL – 5250 Medford Drive, Suite 120
• Kansas City, MO - 6061 NW 64th Street
• Lakeland, TN - 9050 Highway 64, Suite A
• Lawrence, KS - 4740 Bauer Farm Drive
• Owasso, OK – 9601 N. 133rd E. Avenue
• Peoria, AZ – 10134 West Happy Valley Road
• San Rafael, CA - 655 Irwin Street
• Smyrna, GA – 4330 East-West Connector
• Wheat Ridge, CO – 3725 Kipling Street

According to a press release, each of the new stores are estimated to bring 100 new jobs into the local communities. No word has yet been released regarding opening dates for these new locations, although Sprouts has disclosed it plans to share this information later this year.

Stay tuned to AndNowUKnow as we continue to track the expansion plans of Sprouts Farmers Market.

Sprouts Farmers Market

MISSION, TX –Viva Fresh is hitting the links with the debut of the Viva Fresh Open “Swing for the Future” golf tournament, presented by Paramount Citrus.

The inaugural Viva Fresh Produce Expo will be held in Austin, Texas on March 26-28, 2015 and the golf tournament will be held at the Grey Rock Country Club on Thursday, March 26 and will start at 11:30 am CST.

Craig Slate, Senior Director of Retail Sales at IFCO said, “We’re excited to debut the Viva Fresh Open in conjunction with the annual Viva Fresh Produce Expo. The tournament will provide a great opportunity for expo participants to join together for some camaraderie, fun competition and a great cause – education.”

This new event will provide additional networking opportunities as well as raising funds for the Viva Fresh Education Scholarship Fund, which will support students and teachers whose curriculums are focused on nutrition and agriculture programming, according to a press release.

“The scholarship fund is something that we’re all passionate about and would like to see grow each year,” said Bret Erickson, President and CEO of the Texas International Produce Association. “Providing the gift of education is not only beneficial for our youth but a great networking extension for our Viva Fresh Expo.”

The industry has been buzzing about the debut of the Viva Fresh Produce Expo. If you missed what H-E-B’s Hugh Topper has to say about the event, check out our previous article by clicking here.

Registration includes entrance to the tournament, an awards reception where the first and second place teams for gross and net scores will be recognized and the 19^th Hole Celebration at the Grey Rock Biergarten for live music and games.

The Viva Fresh Produce Expo is certainly gearing to for a huge debut this March. Make sure you don’t miss it!

Viva Fresh

TIPA

LINDEN, VA – The Reusable Packaging Association (RPA) has named Hillary Femal, Vice President Global Marketing, IFCO Systems, the first female Chairperson in its 16-year history.

“This year promises to be exciting and productive for our association as we work to expand reusable packaging's role in supply chains across the country. Over the past decade, the use of reusables has grown tremendously, and our membership along with it,” said Femal.

She continued, “Now, the association is poised to support our innovative industry with the launch of our Reusable Packaging Forum, increased end-user engagement, and expanded partnerships with trade groups and academic institutions.”

Representatives of 20 additional companies, including four new members, will join her on the 2015 team. According to a press release, the group will focus on creating added benefits for members as well as strengthening the RPA’s position as the industry resource for the adoption of reusables.

In addition to Femal, members of the Executive Committee are:

• Norm Kukuk, Vice President Marketing & New Product Development, ORBIS Corporation, Vice Chairman
• Jack Fillmore, Director of Engineering and New Product Development, Buckhorn, Secretary/Treasurer
• Robert Engle, President and Chief Executive Officer of Otto Environmental Systems North America, Immediate Past Chairman
• Jerry Welcome, RPA President and CEO (ex officio)

“This year promises to be exciting and productive for our association as we work to expand reusable packaging's role in supply chains across the country. Over the past decade, the use of reusables has grown tremendously, and our membership along with it. Now, the association is poised to support our innovative industry with the launch of our Reusable Packaging Forum, increased end-user engagement, and expanded partnerships with trade groups and academic institutions,” said Femal. 

The four new people joining the RPA Board of Directors in 2015 are: 

• Michael Chiado, Executive Vice President and General Manager, Georg Utz, Inc.
• Chris Bomgaars, Director, Sales & Marketing, CHEP Pallecon Solutions North America
• Nathan Franck, CEO, CABKA North America 
• Luis Ruiz, Director, Customer Solutions, CHEP North America

“The RPA offers unparalleled opportunities for manufacturers to become educated on the best reusable packaging options available today. It is my goal as a new board member in 2015 to help drive awareness for the association and add a fresh perspective as we strive to offer greater value to all of our members and the reusable packaging industry as a whole,” said Bomgaars.

Ruiz mirrored that sentiment saying, "It is a great pleasure for me personally to join the board, and for CHEP to continue to be actively involved within the RPA. I am looking forward to the opportunity to work with all the talented people currently in the RPA organization and the stakeholders which the RPA represents and supports.”

Returning members of the Board are:

• Jim Cavezza, Vice President, Material Handling Sales, PendaForm
• Phil Davis, Senior Perishables Supply Chain Manager, The Kroger Company
• Carl Glick, Vice President of Sales, Polymer Logistics
• Cindy Doman, Senior Packaging Engineering, Herman Miller
• Greg Gorski, Vice President Corporate Operations Tosca Ltd.
• Willy Lai, Director of Asset Management, iGPS Logistics LLC
• Dan Lafond, Sales Manager-Supply Chain Solutions Group, Rehrig Pacific Company
• Binayak Mohapatra, Vice President Operations, Schoeller Allibert, USA
• David R. McCulloch, Vice President & Managing Director, PSD, Schaefer Systems International, Inc.
• Rick Sasse, Director of Custom Transport Packaging, TriEnda / Lexington Logistics
• Craig S. Scott, Managing Director – International Sales, Polymer Solutions International Inc.
• Mike Hachtman, President, reLogistics Services 

AndNowUKnow would like to congratulate Hillary along with the new members and wish the best of luck to all returning members as well!

Reusable Packaging Association