WASHINGTON, D.C. – The Washington Conference, which took place in Washington D.C. this week, offered attendees face-to-face dialogue with lawmakers and staff at key congressional offices and provided great networking opportunities.  Check out some of the highlights from the event. 

The Conference kicked off on Monday with hundreds of industry leaders attending this year’s opening party.  Attendees were able to network while enjoying one of the best views in the city on the Rooftop Terrace of Charlie Palmer Steak.

At Tuesday’s Breakfast General Session, United Fresh presented its Congressional Leadership Award to Rep. Doc Hastings of Washington for his work representing produce industry interests, including his service as Co-Chair of the House Specialty Crop Caucus and his leadership on immigration reform and multiple Farm Bills.  Rep. Hastings and Sen. Pat Roberts of Kansas then addressed the attendees and provided updates on the legislative agenda leading up to the midterm election.

Then, hundreds of United Fresh members came together and met with lawmakers of the House of Representatives Tuesday in the annual march on Capitol Hill.  Industry leaders were able to voice their concerns about immigration reform, nutrition policies and the impact of economics and regulatory challenges on their operations.

Tuesday night, attendees were treated to the Fresh Festival on Capitol Hill.  This unique event is one of the most talked-about receptions in D.C.  Members of Congress and their staff, key administration officials and produce leaders came together for this flavorful display of what the industry has to offer. 

On Wednesday, conference attendees received the rare opportunity to hear from Mike Taylor, the Deputy Commissioner for Foods and Veterinary Medicine for FDA.  Taylor used his time to discuss the proposed FSMA rules that could significantly impact the industry. 

The conference ended Wednesday with an entertaining address from Frank Luntz, an American political consultant, pollster, and "public opinion guru," who gave a behind-the-scenes perspective on the fall 2014 elections and how they might impact the industry.

With the two key takeaways from the conference being the need for action on school nutrition and immigration reform, hopefully the produce industry joining together and voicing their concerns on these issues will lead Congress to act.

United Fresh

CINCINNATI, OH – Kroger just keeps steaming ahead with the release of a very strong Q2 financial report, highlighted by net earnings of $347 million, or $0.70 per diluted share, and identical supermarket sales growth, without fuel, of 4.8%. During the same period last year, that figure was $317 million, or $0.60 per diluted share. The release of this report impressively marks the 43rd consecutive quarter of positive identical supermarket sales growth.

With results like these, Kroger's CEO Rodney McMullen was understandably proud of his company's performance.

"We are winning with customers because we offer a full range of advantages including a great overall shopping experience, excellent customer service, a complete assortment of both national and corporate brand products, and everyday low prices and promotional offerings," McMullen said. "As we improve our connection with customers, we are also executing our growth plan and delivering on our key performance indicators -- all of which is fueling strong financial results for shareholders."

Other highlights from the report include:

• An increase in total sales of 11.6% to $25.3 billion compared to $22.7 billion for the same period last year. According to Reuters, analysts had only expected $24.92 billion in total sales.
• Total sales, excluding fuel, increased 12.4%.
• Capital investments, excluding mergers, acquisitions, and purchases of leased facilities, of $672 million, compared to $507 million.
• An increase in forward looking guidance to a range of $3.22 to $3.28 per diluted share for fiscal 2014 from an original guidance range of $3.19 to $3.27 per diluted share.
• An increase in forward looking guidance for identical supermarket sales growth to 3.5% to 4.25% for fiscal 2014 from a previous estimate of 3.0% to 4.0%.

"We are accelerating core business growth and investing to create unique competitive positioning for today and the future," McMullen said. "Based on our strong quarter results, we raised our net earnings per diluted share and identical supermarket sales growth guidance for the year.  We are well on our way to achieving a 13 – 15% net-earnings-per-diluted-share growth rate, including net accretion to earnings from the Harris Teeter merger, plus the dividend for fiscal 2014."

With the history of success Kroger has compiled over the past several years, I certainly wouldn't be one to bet against McMullen making good on this statement.

As of 11:00am PST, Kroger's stock is currently trading at $52.00 per share, a 0.25% increase during the day's trading activities.

Kroger

CHARLOTTE, NC – Chiquita Brands International, Inc. announced today that it has signed a confidentiality agreement with private Brazilian companies Cutrale Group and the Safra Group (Cutrale/Safra). 

Chiquita has agreed to allow Cutrale/Safra to conduct due diligence and access its data room and its management team.  Cutrale/Safra said that it will use its best efforts to complete its due diligence and present its definitive offer as quickly as it can, according to a release from Chiquita.

This announcement comes after Chiquita postponed its Special Meeting of Shareholders in order to allow time for more beneficial offers.  The meeting, originally scheduled for September 17 where shareholders were going to vote on the proposed merger with Fyffes, will now be held on October 3, 2014.

The New York Times reports that Chiquita resisted Cutrale/Safra’s initial $611 million offer in favor of completing its deal with Fyffes.  This changed after two influential shareholder advisory services recommended that investors vote against the Fyffes deal and suggested that Chiquita should entertain the unexpected offer from Cutrale/Safra.

With Chiquita in talks with Cutrale/Safra, what could this mean for the Fyffes merger?

For now, Chiquita says in a release that it does not expect to update the market with any further information “unless and until the Board has reached a decision on a definitive course of action.  In the interim, Chiquita continues to recommend that its shareholders vote “FOR” the Fyffes transaction and the other proposals on the WHITE proxy card.”

As of 4:01 pm ET on Wednesday, Chiquita’s shares rose $0.15 for an increase of 1.09%.

For more information on the Chiquita and Fyffes merger and Cutrale/Safra’s offer, check out our previous articles by clicking here and here.

Stay tuned to AndNowUKnow as we continue to follow this merger and any potential takeover offers.

Chiquita Brands

Cutrale

Safra Group

Fyffes

BOULDER, CO - Co-Founder of Alfalfa's Market, Mark Retzloff, has announced that he will be stepping down from his position as Chairman and CEO of the retailer over philosophical differences with fellow Board member Barney Feinblum, according to the Denver Post.

"You have to have a culture where [employees] like to be at work and are cared for and respected," Retzloff said. "I had one of the other board members whose style was pretty much the opposite of that. There was a conflict because of that."

"I don't think that was the reason at all for the decision," Feinblum disagreed. "Mark is a visionary and a big-picture guy. But he is not as good at operating the business on a day-to-day basis."

According to the Denver Post, Feinblum argued that the poor performance of Alfalfa's new Louisville location “probably affected” the Board's decision to have Retzolff step down.

With his departure, Alfalfa's board member James Searcy will take over his place as interim CEO and Chairman of the Board, a move which Retzloff spoke approvingly of in a statement.

"Alfalfa's has an excellent management team," he said. "I am very confident about their ability to operate the stores."

According to the Denver Post, Retzloff will still remain a shareholder and Board Member of Alfalfa in the wake of this decision.

The Daily Camera has also reported that on the day following Mark Retzloff's removal, three other Alfalfa managers were fired due to what Searcy called "a shift in the overall directon of the company." Whether this 'shift' will mean for the future however is still largely unknown.

Stay tuned to AndNowUKnow for any updates on this executive shakeup at Alfalfa's Market.

Alfalfa's Market

PHILADELPHIA, PA - Love Beets is unveiling a company-wide rebranding campaign that includes new packaging and a re-designed website. The new branding will hit shelves this month and will continue to roll out nationwide through the end of the year.

“The creative evolution of Love Beets really brings to life the idea that beets are modern, fun, and can be enjoyed by consumers of all ages,” said George Shropshire, Vice President of Love Beets. “We’re excited to reveal a whole new look and technology that make beets a hassle-free experience and even easier to snack on whenever, wherever.”

The updated packaging for Love Beets products adds greater visibility and accessibility for consumers on shelf and at home. According to a press release, these innovations include:

• Marinated Baby Beets (5 flavors): New packs feature state-of-the-art peel and seal technology to keep each beet fresher for longer and allow for easier portioning and storage across meals, snacks and recipes. The packs now stand upright and may be opened and closed several times.
• Vacuum-packed Cooked Beets (2 varieties):  A new and improved seal keeps beet juices locked in and reduces the risk of refrigerator messes.
• Beet Juices (3 flavors): Beet Juice, Super Tasty and a new Organic Beet Juice boast new, sleek container designs and sizes. Consumers will now be able to choose a 14-oz. re-usable glass bottle or a larger 20-oz. plastic bottle, all available in late November.
• Club Pack (2 varieties): Labels have also been re-imagined with a series of delicious recipes and directions for how to prepare beets.

The company’s newly designed website and social platforms feature highly interactive and responsive sections, rich imagery, and a lifestyle blog that will highlight health benefits of beets and their many uses – from salads and entrees to smoothies and desserts.

Love Beets

Welcome to What’s in Store. From the Heart of Onion Country, USA Onions is bringing a versatile marketing program, created to enhance and excite retail produce departments and the consumer experience. USA Onions currently represents more than 200 growers and 30 shippers in Southwestern Idaho and Oregon, a place where some of the best tasting onions call home.

USA Onions will be offering a host of promotional programs this year, as well as foodservice and retail materials including printed information covering prep tips, yields, sizing, storage and recipes and beautiful full color POS materials. A Broker Incentive Program is also starting September 15th plus programs available to individual retailers and foodservice partners that are interested in promoting the USA Onions brand. In addition, for industry professionals and consumers alike, USA Onions has a new website featuring recipes, prep tips and much more all easily accessible and user friendly.

Growers in the fertile Snake River Valley plant yellow, red, and white varieties of sweet Spanish seed in March and April to offer more than one billion pounds of USA Onions from August to Early May. Premium Idaho-Eastern Oregon onions are available from August to early May. All of the company’s onions are stored in state-of-the-art facilities and are inspected daily by the Federal-State Inspection Service to certify that they are the right grade, size, pack and maturity. In fact, USA Onions is the only storage onion region to operate under a federal marketing order, 958, which exceeds size in grade standards of USDA. From field to kitchen, USA Onions, America’s Local Onion Growers, have you covered.

USA Onions

MONTEREY, CA – PRO*ACT's sustainability and local produce initiative, Greener Fields Together, has announced that it will be an official sponsor of Farm Aid 2014.

“Supporting local farms and sustainably raised fresh produce is a big part of our Greener Fields Together mission,” says Max Yeater, President of PRO*ACT. “It’s a passion that we share with the Farm Aid organization and we’re happy to support the effort with our sponsorship. We’re looking forward to what promises to be a great event for a great cause.”

Farm Aid brings together recording artists like Willie Nelson, Neil Young, John Mellencamp and Dave Matthews in order to raise awareness and money for America's family-owned farms and to help grow the “Good Food Movement.”

According to a press release, as in previous years Greener Fields Together will be participating in Farm Aid's HOMEGROWN Village. The HOMEGROWN Village will feature live music, interviews with artists and farmers, the HOMEGROWN Skills Tent featuring a wide range of local agrarian and homesteading skills presentations, and educational hands-on food and farm activities. By attending the Village, event-goers have the opportunity to learn more about environmental conservation, what fuels economic growth, and how to support the Good Food Movement.

Finally, together with local purveyor Foster-Caviness, Greener Fields Together will be donating produce from local farmers which will go into the construction of the artist backstage catering venue and for the HOMEGROWN Concessions area.

It's great to see PRO*ACT supporting a wonderful cause like this. Nice job, Greener Fields Together!

PRO*ACT

Edmundson Martin has been featured in the latest edition of AndNowUKnow’s print publication, The Snack Magazine. Partner and Creative Director at Edmundson Martin, as well as contributing author for The Snack, David Edmundson, gives six insider tips on how to make your produce brand work harder on the shelf.

Check out The Snack article by clicking here, or read the full text below:

Can your produce brand work harder at the shelf?

When speaking with produce marketers regarding what they want out of their brand and packaging, you hear things like, “We want it to pop,” “It needs to feel high quality,” “Make it look fresh,” “We want to look like a category leader.” While the intentions are good, without a more strategic approach most brands end up over-packaged and uninspired, lacking the emotional appeal needed to engage shoppers and ultimately increase market share.

Before embarking on your next brand creation or redesign initiative, consider the following points to help ensure a fresh and successful outcome:

1. Does your brand tell an authentic story?

We’re not talking about the 8 lines of text on the back of your bag but about your brand’s visual expression and whether it communicates the true you in a unique way. In the produce sector, many companies fail to share a compelling and genuine story. This leads to generic looking packs with large logos, graphics color bars, and redundant product photography that lacks ownability. Developing a visually distinctive brand language that tells an authentic story will engage shoppers and help set your brand apart.

2. Does your brand appear fresh?

In produce, freshness is communicated by the product itself. Unlike frozen dinners or cereal boxes, a picture is not worth a thousand words. The product should be the hero with the brand, and graphics serving a supporting role to help differentiate and communicate things like trust and quality. Finding the right balance between product visibility and brand impact is a crucial consideration when you want to stand out without sacrificing freshness perceptions.

3. Is your messaging meaningful?

Product description, quality/quantity statements, health benefits, flavor profiles, sustainability messages, etc.… That’s a lot to communicate on a clamshell or bag, especially when you are trying to minimize the graphics. It’s critical that your messaging is simplified down to two key points: what makes your product different and why a shopper should buy it. By reducing content and focusing on what matters most to your audience, your package will be less cluttered and more engaging.

4. Is your brand versatile?

Given the many production techniques, substrates, sizes, and structures in the industry, it is important to consider how your brand voice reproduces in different scenarios– such as a spot color box vs. a 4-color bag, or the size limitations of a PLU tag vs. a large display box. Quality perceptions are at stake; a strong brand will reproduce flawlessly across any medium for maximum consistency and increased brand equity.

5. Is your brand tired?

All brands need to revitalize their packaging to stay relevant. Many brands in the produce sector are outdated, opening the door for competition and loss of market share. Keeping your brand current is a great way to differentiate and provide new meaning. Is there a new benefit or characteristic that can be leveraged for more consumer relevance? Being current is not about looking trendy or being different just to be different­—­ it’s about creating a better bond between your brand and consumers.

6. Is your packaging unified?

The best brands speak with one distinctive voice across all touch points, both visually and verbally. Consistency fosters trust and loyalty. Clamshell labels, PLU stickers, display boxes, handle bags, and pop displays should all speak with the same dynamic brand voice. By engaging consumers with a unified appearance and message across your entire product line, you can maximize brand recognition and relevance where it matters most... at the shelf.

The produce sector is a largely untapped and underdeveloped category with its own set of challenges and special considerations when it comes to branding and packaging. Some would say that in produce, brands don’t have the same influence as in other categories, but there is certainly an opportunity to affect buying decisions for those willing to take a strategic, shopper focused approach.

David Edmundson is Partner/Creative Director at Edmundson Martin, a strategic branding firm that helps build better food and beverage brands through meaningful design. They combine creative intelligence with executional know-how to deliver brands that are different, relevant and successful.

[email protected]

The Snack

Edmundson Martin

JUPITER, FL - Locus Traxx has announced that it will be launching an updated version of its SmartTraxx Portable unit, redesigning the equipment to make it possible to fit almost entirely inside the shipping container.

Ray Hoffman, Managing Director of the European venture of Locus Traxx Worldwide and Vitrociset Belgium, says that this new SmartTraxx Portable will “redefine the market,” giving produce shippers more options than ever before.

“SmartTraxx Portable is a multimodal unit that is capable of transmitting location and temperature data from inside a container even when traveling across deep oceans,” he said. “Self-reporting shipments continuously send out real-time information on their location and status updates, which can be received by users on their desktop or smartphone.”

One thing that makes the updated unit so exciting is that it is capable of sending intrusion alerts whenever the doors of a container are opened, protecting shippers from unauthorized tampering of their products.

All the data from SmartTraxx Portable and Locus Traxx's other units are secured and displayed on the company's client dedicated website, Oversight. There shippers can create create reports and graphics for more efficient analysis of their operations.

Together with Locus Traxx's other products like the innovative SmartTraxx Go unit which AndNowUKnow had the privilege to highlight in a previous Behind the Greens episode, SmartTraxx Portable gives logistics companies powerful tools to promote cost savings measures and efficient operations.

For example, the Allen Lund Company, which makes use of roughly 600 SmartTraxx units a month, saved $540,000 in 2012 as a result of a reduction in the level of claims from its client, thanks in part to the information provided by Locus Traxx.

“By reporting the status of the load in real time our customers are able to react immediately as problems arise and not after the fact,” Hoffman shared. “Many times a simple phone call can get a problem solved, thus avoiding damage to the product, time and resource consuming claims and even total loss of product.”

To learn more about Locus Traxx's line of products, check out the company's video at this link here.

Locus Traxx

IMMOKALEE, FL - Lipman is bringing a customer favorite to produce departments this summer, Lipman’s proprietary Vintage Ripes.

The exclusive tomato is field-grown and vine-ripened for a one-of-a-kind flavor. This heirloom variety is ideal for stuffing, slicing into a meal, or simply consumed as a standalone snack. Since the Vintage Ripes are sold at the peak of freshness, the company recommends handling them with care for optimum shelf life. Packaging comes with unique recipe options and links to the company website via QR code for more information on the product and Lipman Produce.

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

Lipman Produce