NEWARK, DE - PMA has joined 118 organizations from diverse agriculture, food and manufacturing sectors in a letter to lawmakers. The signers of the letter are concerned over a variety of retaliatory tariffs that Canada and Mexico could apply to U.S. exports, including produce, over the ‘COOL’ rule.

According to PMA, a World Trade Organization (WTO) Compliance Panel report determined that existing U.S. mandatory Country of Origin Labeling, aka ‘COOL’ rule, for muscle cuts of meat violates obligations that the U.S. has undertaken as a member of the WTO in regards to Canada and Mexico. Even though the original WTO ruling is about meat, the signers are concerned that the retaliations would make their way to including fresh produce as a way to make a stronger point on the issue. 

The letter states, “Canada has already issued a preliminary retaliation list targeting a broad spectrum of commodities and manufactured products that will affect every state in the country.  Mexico has not yet announced a preliminary retaliation list, but has implemented retaliatory tariffs in the past which may be indicative of future tariff opportunities.”

The letter goes on to say that U.S. industries could lose billions in lost sales if retaliation is allowed.  It also invites the recipients to review the state-by-state retaliatory analysis available here. 

Stay tuned to AndNowUKnow for the latest on this developing story.

PMA

The following was copied verbatim from a press release:

San Jose, CA (November 3, 2014) The Mushroom Council announces today that Kathleen Preis has been promoted to Marketing Manager. In this new role, she will be taking on additional management responsibilities for key Mushroom Council program areas, while continuing to lead the school meals marketing initiative.

“In her two years with the Council, Katie has proven herself as a quick learner, adding tremendous value and a spark of enthusiasm to our mushroom marketing team,” said Bart Minor, president and chief executive officer of the Mushroom Council. “She has taken our initiative to introduce blended meat and mushroom products into the school lunch program from a simple concept to widespread adoption by school foodservice.”

Preis is a graduate of the internationally recognized Department of Food Marketing in the Haub School of Business at St. Joseph’s University in Philadelphia, PA. She recently completed the PMA Foundation’s Emerging Leaders Program.

“Katie has the ability to juggle many tasks, and we know she will continue to add value to the Council’s marketing programs by building demand for fresh mushroom consumption,” said Tony D’Amico, Mushroom Council chairman.

Mushroom blendability, the culinary technique of blending fresh, chopped mushrooms with ground meat entrees, is now the primary focus of the Council’s marketing efforts. Validated by the success in school meals, mushroom blendability opens up an entire new market for the industry by expanding the consumer experience opportunity of fresh mushrooms past the fresh produce section and into the deli, meat case and more.

The Mushroom Council

KINGSVILLE, ONTARIO - Double Diamond Farms' new Gramato grape tomato has been a big hit in its first year, answering the demand of retailers looking for a healthy addition to the increasingly important snacking category.

“The rise in the importance of snack food in the fresh produce industry has been a trend which we've payed close attention to at Double Diamond Farms,” Jeremy Stockwell, Director of Procurement and Sales, shared with me. “Consumers want something healthy that they can grab by the handful and take on the road with them without having to sacrifice the sweet taste people traditionally look for in the snack aisle. Gramato tomatoes answer this consumer demand perfectly. With the reception they've already enjoyed, we're very excited about the growth potential of this variety.”

Gramato tomatoes are available year round in a variety of packaging options, including top seal, clamshell and easy carry bags, giving retailers options when designing displays.

The Gramato isn't just a on-the-go snack, however. The versatility of this variety allows for easy incorporation into a variety of dishes such as the Pita Pizza Pronto recipe featured on Double Diamond's website, which frankly looks good enough that I may have to try it out myself sometime soon. Jeremy shared with me that Gramato grape tomatoes also make wonderful additions to a wide range of salad or pasta dishes.

What's next for the Gramato? Double Diamond is look into capitalizing on the successes of the first year of this variety, improving Gramato and setting the foundation for an even stronger year next year.

Congratulations on the success of this new variety, Double Diamond Farms!

Double Diamond Farms

CALIFORNIA - UC Davis has sued the California Strawberry Commission in response to a lawsuit it filed against the UC just over a year ago.

The Sacramento Bee reports that both lawsuits revolve around the future of UC Davis’ plant-breeding program that has produced new kinds of strawberries for nurseries and farmers since the 1930s.  This industry has been paying the university tens of millions of dollars in research grants and royalties in return for the new varieties.

As we previously reported, this longstanding relationship became tense when two leading UC strawberry experts planned to leave the university and start a private company for strawberry crop developments.  They wanted to take a share of valuable UC inventory of strawberry specimens dating back to the 1930s.

The Strawberry Commission was alarmed and sued the University of California alleging it was endorsing privatization of an important part of the state’s agricultural heritage.  That lawsuit also demanded that the university turn over its collection of 1,500 strawberry plants use in breeding, known as the ‘germplasm.’

According to the Bee, UC's counter lawsuit is asking for the university to be declared the sole owner of the germplasm and for the court to say that the Strawberry Commission isn’t entitled to a copy.  The university is also asking for a declaration that it is the sole owner of patents on nine strawberry varieties developed over the years by the two departing scientists.

Before these lawsuits, the commission funded UC research by $350,000 annually. Strawberry nurseries throughout the state also get discounts on royalties they paid to grow and sell UC varieties. 

There is a lot at stake in this fight.  The Bee reports that plant varieties developed by UC Davis have produced major breakthroughs in flavor, durability and other qualities over the years and currently account for about half of the state’s $2 billion-a-year strawberry crop.

Both the growers and UC Davis have been saying they would like to settle the case, but with this counter lawsuit, that seems less likely now.

Stay tuned to AndNowUKnow for the latest developments in this saga.

HOUSTON, TX – Sysco released its Q1 2015 earnings report Monday, November 3rd, 2014, reporting a 6.2% increase in sales to $12.4 billion. Among the parts of report getting the biggest headlines, however, is Sysco's admission that its impending merger with US Foods will be delayed as a result of ongoing discussions with the FTC. Sysco now does not expect it to be completed before the first quarter of 2015.

Despite the setback, President and CEO Bill DeLaney struck a positive note in his comments, focusing on the company's strong fiscal performance during Q1.

“We are pleased with the solid operating performance we delivered in our first fiscal quarter in the midst of ongoing challenging market conditions," DeLaney shared in a company press release. "While we were challenged with expense management in certain aspects of our business, we generated 2% case volume growth and managed acute inflationary pressures very effectively. Our improved performance during the quarter was due in part to the benefits we realized from our portfolio of business transformation initiatives, especially category management.”

Some highlights from the report included:

• A 6.2% increase in sales to $12.4 billion, compared to $11.7 billion during Q1 2014.
• A 6.0% increase in gross profit to $2.2 billion.
• A 4 basis point reduction in gross margin to 17.59%.
• A 5.9% increase in adjusted operating income to $509 million, adjusted for certain items principally related related to merger and integration planning expenses.
• A 6.1% increase in adjusted diluted earnings per share to $0.52 (non-adjusted diluted earnings per share were $0.47, a 2.1% decrease compared to last year).

Stay tuned to AndNowUKnow for any future updates on Sysco, US Food, and the two companies' impending merger as they develop.

Sysco

US Foods

VALENCIA, CA - Kevin Fiori, Vice President of Sales and Marketing for Sunkist Growers, has been named as the Produce Marketing Association’s (PMA) new Chairperson on its Board of Directors. Cathy Burns, PMA President, and Tim Riley, President at The Giumarra Companies and former PMA Chairperson, had some encouraging words for Kevin as Riley passes the baton to his new successor.

“We’re all working together to boost consumer confidence in our products, meanwhile attracting, developing, and retaining talented individuals for our businesses and marketing fresh produce in new ways that will increase consumption,” said Riley. “I’m confident that Kevin, a talented leader with an immense amount of diverse experience in this industry, can rally with the rest of PMA’s board members and hundreds of volunteer leaders to continue to engage the entire fresh produce and floral industry in 2015 to work toward those goals.”

“Over the past year, Tim Riley led the diverse team of industry leaders and business strategists of the PMA Board of Directors, who together, contributed significant insight and guidance to implement PMA’s new strategic plan,” said Burns. “Now, as Kevin steps into that leadership role, he brings years of diverse global expertise coupled with the passion and talent that’s needed to inspire industry leaders and drive those strategies forward in an effort to move the needle on fresh produce consumption and floral demand.”

During Fiori’s opening statement at PMA Fresh Summit’s Breakfast General Session, he affirmed his and Sunkist’s commitment to working together with the industry to inspire kids to eat healthier with PMA and Sesame Workshop’s ‘eat brighter!’ initiative.

Sunkist has recently launched new Sesame Street-themed packaging as part of the ‘eat brighter!’ campaign to promote fruit and vegetable consumption among children aged 2 to 5 and their parents and caregivers.

“Through this program, the industry has an amazing opportunity to encourage kids and their parents to eat better. When we work together as an industry, we all win,” said Fiori.

Prior to joining Sunkist in 2008, Fiori worked with Dole Food Company for 29 years in a number of positions ranging from sales representative all the way up to Senior Vice President, Agriculture Operations. His long-standing dedication to the industry and leadership experience will prove invaluable as he steps into this new role in his successful career.   

AndNowUKnow congratulates Kevin Fiori on his election as PMA’s new Chairperson!

Sunkist Growers

PMA

PHARR, TX - Red Sun Farms is wrapping up 2014 with a year of incredible growth and expansion. As November gets underway, the greenhouse growers are announcing the recent expansion of its distribution center and cold storage facility in Pharr, Texas. The 24,000 sq. foot expansion more than doubles the size of its initial 23,000 sq. foot facility, bringing the Texas distribution center and cold storage facility to 47,000 square feet.

“We established our footprint in Texas about 3 years ago as it provided the ideal distribution point to consolidate all of our tomatoes, bell peppers and cucumbers that we grow at our operations in Mexico,” Carlos Visconti, COO, tells me. “Any time we see an opportunity to bring the produce closer to our customers, create direct shipments and decrease the miles on the road, we consider that opportunity an investment worth making.”

Popularity and demand has grown for Red Sun’s product portfolio with positive results over the past few years. Between shipping and receiving, the company sees approximately 20 million cases of produce moving through the facility each year. The company started expanding the Pharr facility at the beginning of the year and wrapped up construction and maintenance a few weeks ago.

In addition to the expansion in Texas, Red Sun Farms is also counting down to the ribbon cutting and official grand opening of its new greenhouse operations in, Dublin, Virginia on November 17th. Harvest of conventional TOV kicked off on September 25th with the first Virginia Grown, Organic TOV getting underway last month.

12 additional acres to the operation will be underway soon as part of Virginia's phase 2 of the plan, followed by phase 3’s additional 18 acres that will bring Virginia’s Red Sun footprint to 48 acres in 2017. Once complete, the three year project will create jobs for 205 people and boast 48 acres of locally greenhouse grown tomatoes, organic, and specialty lines of produce.

Congrats, Red Sun, on your continued growth and evolution.

Red Sun Farms

LOS ANGELES, CA – Giumarra Wenatchee is adding a 1-lb bag option for its Nature’s Partner kiwifruit just in time for the California and Italian seasons.

“We experienced success with our 1 and 2-lb kiwifruit clamshells and wanted to expand our packaging offering to appeal to a wider consumer base,” says Jason Bushong, Division Manager for Giumarra Wenatchee. “Our research shows that selling packaged kiwifruit in addition to bulk lifts the sales of the entire category.”

According to a press release, the new packaging will feature bright graphics, recipes, and nutritional information.  It will offer both eye appeal for consumers and versatility to retailers.

“This bag delivers on great merchandising opportunities with QR-coded information for consumers, including new and exciting ways to use kiwifruit, such as in kiwifruit salsa,” says Bushong. “We demoed a kiwifruit avocado salsa recipe for consumers and received great feedback. The options to cross merchandise with kiwifruit are incredibly versatile.”

The new bag has been made with convenience in mind. “The size is perfect for smaller families or single-person households who prefer the convenience of a grab-and-go bag,” says Scott Ross, Eastern Region Business Manager for Giumarra. “We feel this additional packaging option will ultimately lift kiwifruit sales.”

With a supply of kiwifruit grown in the U.S., New Zealand, Chile and Italy, Giumarra Wenatchee markets kiwifruit year-round.  This new bag should be a strong addition to the company’s packaging lineup.

Giumarra Wenatche

TORONTO, ONTARIO - Loblaw is selling 10 Shoppers Drug Mart stores in locations throughout Ontario, Alberta, Nova Scotia and Prince Edward Island. According to Global News, seven of the ten stores will be sold to independent pharmacists running stores under the McKesson brand name. The remaining three stores are being sold to Pharmasave Drugs in Atlantic Canada.

The impetus for this sale stretches back to last year's $12.4 billion merger deal which united Loblaw and Shoppers Drug Mart. Canada's Competition Bureau's approval on the deal hinged on a condition that the combined companies would divest themselves of locations in areas where multiple store locations could have an adverse affect on market competition, leading to upward pressure on pricing. The Bureau cited 27 such local markets where these concerns existed in its initial report on the merger.

“Competition generally leads to lower prices for consumers, as well as more consumer choice, a wider range of service options and increased innovation,” explained a Competition Bureau regulator in an official statement.

Shoppers Drug Mart has been attracting increasing interest from the fresh produce industry in recent months with its addition of fresh produce into several of its stores in an important market test case. As AndNowUKnow previously covered, the success of this test case could add Shoppers as an important new retail client for companies throughout the industry, giving more customers access to the fresh fruits and vegetables which are key to a healthy lifestyle.

According to the Global News, Loblaw is still required to sell another four locations in order to fulfill its obligation to the Bureau. To this date, it has sold 14 total stores and nine in-store pharmacies.

Stay tuned to AndNowUKnow for updates on Loblaw's future operations as it moves forward after its merger with Shoppers Drug Mart. 

Loblaw 

Shoppers Drug Mart

HURLEYVILLE, NY - Capitalizing on the multi-billion dollar bagged lettuce market is the latest innovation in salad dressings: Formaggio’s Just Add Lettuce™, the “world’s first three-dimensional salad dressing.” I spoke with Just Add Lettuce™ creator Anthony Mongiello to find out exactly what a 3-D salad dressing is, and how it’s quickly gaining a compelling foothold in the market.   

“Ordinary salad dressings have length and width, but they have no height, no depth. Every Just Add Lettuce™ jar has incredible ingredients like cheese, olives, fresh vegetables – everything you need to make a gourmet salad,” Mongiello tells me. “I wanted to make it easy for consumers to just pick up the container and do what the label says. Just add lettuce.”

Formaggio, most known for its domestic and international award-winning fresh mozzarella products, recognized that its customers were using its cheeses on top of salads, and they were clamoring for something more to complement their healthy dishes. Mongiello wanted a product that was consumer friendly, and wouldn’t require shoppers to look for extra ingredients they’d have to chop and clean up after. Thus, Just Add Lettuce™ was born.

Formaggio currently offers Just Add Lettuce™ in three varieties: Italian, Spanish, and Greek, all in 12 oz. packages. The company has also recently introduced a Bleu Cheese & Cranberries variety.

“The response to Just Add Lettuce™ has been incredible,” Mongiello continued. “And it’s so versatile – people can use it over rice, mashed potatoes, short-cut pasta, and even with a Spanish omelette.”

Looking ahead, Mongiello tells me the company is continuing to go healthy by introducing edamame, quinoa, and kale items to its Just Add Lettuce™ line.

Can’t wait to see how else Formaggio will tap into the produce industry to get the most out of its unique line of salad dressings. 

Just Add Lettuce

Formaggio Cheese