WASHINGTON - The USDA has lifted PACA reparation sanctions on KSP Enterprise Inc.

The Fullerton, California-based company has met its obligations and is now free to operate in the produce industry, according to a USDA press release. Brian M. Chong was listed as the Officer, Director, and major stockholder of the business and may now be employed by or affiliated with any PACA licensee.

KSP Enterprise Inc. was formerly restricted from operating in the produce industry in September 2014 after failing to pay a $183,594 award in favor of a Washington seller. Once a reparation order is fully satisfied and it is confirmed that there are not any outstanding unpaid awards, USDA lifts the employment restrictions of the previously named, responsibly connected individuals.

In the past three years, USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. Individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.

Agricultural Marketing Service 

ISSAQUAH, WA - Costco earned over $110 billion in total revenue in fiscal 2014 with a multifaceted retail plan which has paid enormous dividends for the big box retailer. With over $5.9 billion in meat sales alone and a 91% renewal rate among club members in the United States and Canada (the global rate was an equally impressive 87%), Costco has clearly found a retail strategy that works.

Store Growth

Back in 2013, Costco shared that it planned to open 150 new warehouses over the following 5 years, with 55 of these concentrated in the United States alone. The new stores, primarily located in unentered markets, according to Executive Vice President and CFO Richard Galanti, would mean a wider market and more customers shopping each day. This aggressive approach to expansion has been key to the Costco growth model.

So far, Costco has made good on its promise, opening 26 stores in fiscal 2013 and 29 more in fiscal 2014, net of closures and relocations. This brought Costco's store count to 663 and was an important contributor to the 7% leap in its annual revenue, according to The Motley Fool's Eshna Basu.

With 31 new warehouses planned for fiscal 2015, Galanti shared that the retailer does not just see expansion as a way to fend off rivals, but as a reflection of the company philosophy “that we are doing well and we want to ramp up expansion, which is a decision we made two or three years ago."

Eye on International Expansion

Costco has built a presence in several new countries over the recent past. As Basu noted, in fiscal 2014 it had 109 stores built in international locations, not counting Canada. The new store count by country that year was:

• Canada: 3
• Australia: 3
• Korea: 2
• Japan: 2
• U.K.: 1
• Mexico: 1
• Spain: 1

Costco has another 12 international stores planned in fiscal 2015 and it is also strongly considering entering the potent Chinese retail market.

"Costco sees tremendous growth opportunities in China, especially in light of Chinese consumers' increasing appetite for imported products," shared Jim Murphy, Vice President.

Smart Spending

Before fiscal 2013, Costco's capital spending routinely fell in between $1 million and $1.5 million. This changed in fiscal 2013 when the company increased capital expenditures to $2 billion, a number which it retained in fiscal 2014. This is currently projected to increase even more in fiscal 2015 to $2.5 billion to $2.7 billion.

With a 13% return on invested capital in fiscal 2014, compared to a 8.64% weighted average cost of capital, according to Basu, these investments have obviously paid off for Costco. A willingness to invest in itself allows Costco to stay ahead of the retail game, remodeling stores, expanding ancillary business operations, growing cross-stock depot operations and planning ahead for future store expansions.

Taken together, this cohesive retail strategy has been instrumental in generating the enviable revenue numbers Costco currently enjoys. Stay tuned to AndNowUKnow for coverage of this exciting retailer's future operations.  

Costco

AVONDALE, PA - Foraged Fresh is the latest innovation from To-Jo Mushrooms. This new program offers a wide selection of in-season specialty mushrooms, ranging from Morels to Chanterelles to Matsutake and Porcini.  Throughout the year, To-Jo’s Foraged Fresh program ensures foodservice distributors and retailers access to the perfect complement of specialty items for their customers.

Every Wednesday afternoon, members of this program have access to To-Jo's weekly flier highlighting the current supply, quality, and pricing. One call to To-Jo and your order will be processed within 24 hours. To-Jo collaborates continuously with its customers to give the most up-to-date information pertaining to these offerings and the various preparation techniques that can be used.

If it's in-season and in good supply, To-Jo Mushrooms invites you to turn to Foraged Fresh for all your Specialty mushroom needs.

To-Jo Mushrooms

JUPITER, FL – Locus Traxx Worldwide has partnered with Patterson Companies, a third-party logistics provider of perishable and non-perishable goods, with EDI (Electronic Data Interchange) Integration.

According to a press release, the importance of the partnership is to prevent transportation problems, and to monitor deliveries to Patterson Companies’ customers each year.

"It is my pleasure to announce the EDI Integration between Locus Traxx Worldwide and Patterson Companies. Patterson is one of the most reputable 3PL companies in the nation, and this partnership will help deliver critical information faster and more efficiently,” said David Benjamin, President and CEO of Locus Traxx Worldwide.

“By adding this layer of service, we are supporting Patterson Companies in helping achieve ultimate quality control over the products they deliver to their customers," Benjamin added.

Patterson Companies has over 24 offices across the United States and offers customers domestic and international reach in both the perishable and non-perishable markets.

Patterson’s Vice President of Corporate Sales, George García said, “Our use of Locus Traxx devices and the EDI integration that allows us to receive real-time updates and alerts provides significant advantages to all of our customers.”

“This new technology has raised the level of service we provide our customers. Patterson’s commitment to continue to invest in technology and highly qualified industry leaders is evident in the quality of service we deliver to our customers and partners,” García added.

Congratulations on this new partnership!

Locus Traxx Worldwide

Patterson Companies

HOUSTON, TX - Sysco has named Tom Bené its new EVP and President of Foodservice Operations, effective January 1st, 2015. In his new position, Bené will report directly to Bill DeLaney, Sysco President and Chief Executive Officer, according to a press release. He will have managerial responsibilities for the company's U.S. broadline operations, SYGMA, specialty meat companies, FreshPoint, Guest Supply, European Imports, international, shared services and revenue management.

Formerly, Sysco's Executive Vice President and Chief Commercial Officer, Bené will be succeeding the retiring Mike Green. Green announced his plan to retire after the close of 2014, putting a capstone on a distinguished 24 year career with the company.

"Tom is a proven commercial leader with deep expertise and a strong track record in the foodservice industry," shared Bill DeLaney. "Since joining Sysco early in 2013, he has helped drive major advances in category management, revenue management, sales capability, and customer insights and segmentation. We are fortunate to have such a capable leader to succeed Mike."

Pending the close of the announced US Foods merger, all commercial functions, including contract sales, marketing, merchandising, e-commerce and quality assurance, will continue to report to Bené. This responsibility will transition to other executive officers, however, after the merger closes.

Bené is the former President of PepsiCo Foodservice. During his 23 year career with PepsiCo, he served in a wide range of positions involving sales, operations, franchise development and general management. He began his career with Sysco in March 2013 as EVP and Chief Merchandising Officer before transitioning to EVP and Chief Commercial Officer in August 2013.

Congratulations on this exciting new position, Tom!

Sysco

Rapper Rick Ross has given a shout out to pears, which he attributes to his recent weight loss of over 100 lbs. 

Ross told DJ Tim Westwood in an interview, “I eat pears now and [expletive] like that.  Shout out to all the pear.”

The Washington Post points out that the above quote gained viral status after it was captured in a Vine video.  That video has been looped 21,298,630 times and continues to grow as I type. 

Aside from healthy eating, the Post points out that Ross has also been benefiting from exercise like CrossFit, which the rapper has dubbed "RossFit."

“I still eat the way I want to eat.  I just go to the gym… You know, the most I used to do for exercise is stand up and count the money,” he said.  “But they give me fruit to eat.  I forgot what fruit tasted like.”

While it may be easy to joke about Ross' pear shout out, with millions of loops, 195,800 likes, 164,500 re-Vines and 13,400 comments, the pear category is certainly getting a lot of attention from this viral marketing.  It’s always great to see the healthy benefits of fresh produce getting viral attention like this.   

UNITED STATES - The United States Sweet Potato Council (USSPC) is on the hunt for a new Executive Secretary to fill the position of Chief Executive Officer for the organization. This person would be responsible for coordinating consistent achievement of the USSPC's mission and financial objectives.

“We are looking for someone who is knowledgeable of the produce industry and in particular in the area of sweet potatoes,” shared Sue Johnson-Langdon, Executive Director at the NC Sweet Potato Commission. “They need to have new and fresh ideas to promote and grow the organization.”

For more information and details about how to apply for this position you can check out the full job listing on Joe Produce.

The sweet potato category has enjoyed tremendous growth in recent years, with consumers increasingly turning to the savory tuber because of its versatility, taste, shelf-life, and nutritional profile. Due to controlled environments, American farmers are able to grow premium sweet potatoes year-round in the United States.

“We have the ‘total package’ here with sweet potatoes,” Sue shared. “We’ve always been told to eat our vegetables, and here we have a naturally sweet and flavorful veggie that is a super food nutritionally.”

“Once we began to explore the possibilities of value added products available to consumers, we knew the category would take off,” she continued. “We are seeing continuous increases as sweet potatoes have moved from a holiday staple to a year-round choice.”

The USSPC notes that the candidate will not have to relocate for this position if selected, provided that they live within the borders of the continental United States. This position will be hired under contract with the USSPC, and will be considered a contractor, not an employee of the USSPC.

For any questions regarding this position be sure to check out the full job listing on Joe Produce. Any additional questions can be directed to Sue Johnson-Langdon at [email protected]. 

United States Sweet Potato Council

LA CAÑADA FLINTRIDGE, CA - Bryan Lundberg is joining the Allen Lund Company’s Phoenix Office as a Business Development Specialist.

“I am very excited to have Bryan join our team in Phoenix,” said Matt Minthorn, Phoenix Office Manager. “His extensive industry experience from being an over the road driver, company owner, to now on the brokerage side of the business is invaluable for our office. He has a dedicated focus on customer service that aligns perfectly with the company’s core values.”

Bryan’s experience in the industry started with managing a trucking company before joining the Allen Lund Company, according to a press release. He graduated from Minnesota West with a Degree in Powersports technology.

David Lund, Vice President of Sales and Branch Operations, shared his excitement on Bryan’s appointment, noting, “His excellent customer service coincides perfectly with the customer service the Allen Lund Company provides to our customers. We look forward to growth from the Phoenix office, and know that Bryan will be a great addition.”

Speaking on his new position, Bryan said, “I look to continue to grow our presence in Arizona and beyond as a key partner in the transportation industry.”

Congratulations on joining the Allen Lund Company, Bryan!

Allen Lund Company

SALINAS, CA - D’Arrigo Bros. is presenting its new and improved broccoli rabe in a bag.

This latest innovation offers millennial shoppers a nutrient-rich superfood in a re-sealable bag. Triple washed and ready to use, it’s perfect for anyone on the go. A QR code on the front of the bag links to the company website, where consumers can find a list of vibrant featured recipes and basic cooking techniques. Nutritional information also presents a quick way for shoppers to see the value the product provides. On the back, consumers can also find just one of the many ways they can enhance the flavor of broccoli rabe for an even tastier meal.

Don’t miss this exciting new addition to the Andy Boy family!

If you’d like to see your product in this video segment, please send samples to 2020 L Street, Suite 320, Sacramento, CA 95811.

D'Arrigo Bros.

DALLAS, TX - To help promote the popular avocado, Avocados from Mexico (AFM) has debuted a new permanent display for retailers during the busy holiday and football season.  Additionally, its universal messaging allows the display to also be used the entire year round.  Designed to attract consumers to purchase more avocados, the unique display also promotes usage ideas and cross-merchandising opportunities.

The item comes equipped with 2 Pockets - 4.625” wide x 2” deep x 3.5” tall on top shelf for guacamole or taco spices or recipe cards with a taller bottom shelf for complementary items like chips, taco shells, or beverages.  AFM designed the display with wheels for easy transportation and secondary location opportunities for 75lbs. of avocados to be showcased.  The display can be composed of a single AFM rack or two that can be paired back to back to create a complete avocado presentation.

In addition to the permanent display opportunity, AFM is partnering with Old El Paso during the football season to launch the Guac Fiesta promotion.  The program will be supported with contests, consumer savings, PR and in-store radio and social media.  The promo kicks off December 16^th and will run through February 1, 2015.  The consumer savings include $1 off the purchase of one Old El Paso Shell or Kit and the purchase of two Avocados from Mexico. Consumers can also enter a sweepstakes at AvoFan.com to win an Ultimate Guacamole Taco Fiesta. 

Merchandising for the promotion also includes shippers, signage, POS and a unique molcajete bin.  Retailers can also take advantage of the promo with a Retail Display Contest.

Avocados from Mexico