TEWKSBURY, MA - News broke this weekend that Arthur T. Demoulas had placed a $1.5 billion offer on the table as his latest and final bid for the remaining 50.5% of the Market Basket ownership shares owned by Arthur S. Demoulas' side of the family. According to the Boston Globe, this most recent offer was strengthened by the inclusion of a letter from a yet unreleased private equity firm stating that it is prepared to back Arthur T. Demoulas' offer with $500 million in capital, with the remainder of the offer coming from his private fortune.

With the release of this news, many expected a formal deal to follow closely after. The Governors of Massachusetts and New Hampshire for example released a joint-statement attesting that they expected an agreement to be reached within a matter of days.

“In briefings today, all parties report that they are optimistic that an agreement will be reached to sell the company to Arthur T. Demoulas and to restore him to operating authority on an interim basis until the sale closes,” read the statement from Massachusetts Governor Deval Patrick and New Hampshire Governor Maggie Hassan. “We are hopeful that employees will return to work, and the stores will reopen, early next week.”

According to the Boston Globe, Market Basket's Board of Directors had originally scheduled a meeting for Sunday night intended to hammer out the details of an Arthur T. Demoulas' acquisition, but it was canceled after the retailer's shareholders made it evident that they would refuse to sign off on a stock purchase agreement at that time.

What is to happen next is both simultaneously clear and also uncertain. On one hand, most industry experts agree that the best offer on the table is Arthur T.'s, however with the cancellation of the Board's meeting no one is clear about when a decision will be made.

According to John Davis, a Harvard Business School Professor, the only thing that is clear is that something needs to happen soon to put Market Basket back on track.

“Everybody is surprised that it’s taken this long, and I don’t think more weeks of nothing happening is prudent or is even fiscally possible for the company,” Davis said. “There has to be some arrangement if they make a deal...for Arthur T. to be reinstated and for the company to get back on its feet.”

Whenever a deal is reached you can count on AndNowUKnow to bring you the news and analysis first. Stay tuned.  

Market Basket

CASTROVILLE, CA – The United States Department of Agriculture (USDA) hosted a custom training session at Ocean Mist Farms’ headquarters in Castroville, California.  More than 45 staff members from five departments participated.

Arlin Valenzuela, Ocean Mist Farms Quality Assurance Manager, invited the USDA to come and train the staff on the ways in which the agency inspects and grades product at both shipping and receiving, according to a press release.

“The session was highly beneficial and allowed our team to better understand our specifications compared to the USDA’s and any variations between the two,” Valenzuela said.  “It supports our culture of quality and our strategic initiative to consistently innovate our product quality assurance specifications and procedures.”

Throughout the training session, several of the more than 30 commodities that Ocean Mist Farms grows were specifically reviewed in depth.  Staff members from field harvesting, quality assurance, food safety, sales and senior management were all in attendance.  The training session was designed to enhance consistency and reliability of product inspections, benchmarked to USDA specifications at all levels companywide.

Valenzuela said that the USDA rarely holds custom training sessions at a company’s headquarters.  Mike Morelli, Senior Training Specialist, and Dave Horner, Standardizations and Master Trainer, conducted the training for the USDA.

It's always good to see produce companies take the initiative to enhance product quality assurance. 

Ocean Mist Farms

NETHERLANDS - Scientists in the Netherlands have published an article in Nature, exploring the possibility of cultivating tomatoes capable of growing under constant light exposure. These scientists have isolated a gene in wild tomato species, the type III light harvesting ​chlorophyll a/b binding protein 13 (​CAB-13) gene, which confers a much higher degree of light tolerance than that enjoyed by traditional tomato species.

As Gizmodo documents, modern tomato varieties require roughly eight hours a day of darkness in order to halt the growing cycle. A lack of this rest leads to the growth of yellow spots on the tomato plant and eventually death.

These scientists however postulate that the increased resistance the type III gene confers could negate the need for this rest cycle, allowing the tomatos to grow at a continuous, uninterrupted rate without negative consequences on quality.

What does this mean for growers? It means a 20% increase in crop yields if these scientists are proven correct.

Gizmodo does note however that this new breed is still a ways off. Before growers have a viable variety to work with, researchers would first need to work out if there are any other genetic factors at work in conferring this light resistance to these wild tomato plants in addition to how the protein, sugar, and electrolyte balance of traditional varieties would react under these growing conditions.

Regardless of the challenges, this is certainly a compelling idea. I know I'll certainly be following how this research progresses as we move into the future.  

UNITED STATES - The produce industry is braving the cold to help create a world without ALS by taking the #IceBucketChallenge.   We caught wind of the challenge as it began making its way through the produce industry from Tonya Antle, Principal of Tanimura & Antle, who called out a few industry friends of her own…And it doesn’t stop there.  The challenge is on as we expect to hear from more companies challenging our fresh produce peers and making donations for the cause.

Check out the videos below!

If you want to challenge someone in the industry, click here to send us your video!

Tonya Antle, Principal of Tanimura & Antle:

Karen Caplan, Frieda's President and CEO:

TJ Murphy, Baldor's Owner and CEO:

Michael Muzyk, Baldor's President:

Peppe Bonfiglio, Mastronardi's Key Account Manager:

The ALS Association reports that as of August 22^nd, they have received $53.3 million in donations compared to the $2.2 million they received in the same time period last year.  Joining existing donors, 1.1 million new donors have also contributed.

The ALS Association’s mission includes providing care services to assist people with ALS and their families and a global research program focused on the discovery of treatments and eventually a cure for the disease.

Stay tuned for more produce industry video challenges next week. Thank you to those that have donated and we're looking forward to more videos!

CLICK HERE TO DONATE TO ALS ASSOC.

Tanimura & Antle

Frieda's Specialty Produce

Baldor Specialty Foods

Mastronardi 

ALS Association

GREENSBORO, N.C - With the release of its Q2 earnings report, The Fresh Market's President and CEO Craig Carlock has announced that it will be doubling the number of its stores in the Southeastern United States.

“We are pleased with our second quarter results which demonstrate our ability to drive solid sales and expand merchandise margins in an increasingly competitive retail environment,” Carlock said. “The performance of our new stores exceeded our expectations and we see tremendous expansion opportunities in our core markets...we are raising our store growth potential in the Southeastern United States to double our current store base in this region.”

While net income did decline to $11.4 million compared to $15.6 million in Q2 2013, the rest of The Fresh Market's earnings report supports Carlock's optimistic outlook. Some highlights of the report include:

• Adjusted EBITDA of $46.2 million, compared to $40.3 million in Q2 2013
• Net sales increased 19.0% to $422.2 million
• Comparable store sales increased 2.9% to $357.3 million
• Gross profit increased 18.5% to $143.7 million
• Adjusted diluted earnings per share of $0.36

These strong numbers resulted in positive forward looking statements from The Fresh Market, according to a press release.

“Given results thus far and our current assessment of business conditions for the remainder of the fiscal year, we are reaffirming our previously issued fiscal 2014 comparable store sales and adjusted earnings guidance... we anticipate that comparable store sales will be at the low to mid-point of our 1.5% to 3.5% full fiscal year range in the third quarter. We remain encouraged by our new unit growth pipeline and believe The Fresh Market’s distinct shopping experience and our commitment to offering outstanding food quality and selection position us well for future growth,” Carlock said.

As of 1:45pm EST on Friday August 22nd, The Fresh Market's stock is currently up 2.64 points. That represents a 8.68% increase in its stock price during today's trading, bringing its price per share number to $33.07.

Stay tuned to AndNowUKnow for any further updates on The Fresh Market and its continued expansion efforts. 

The Fresh Market

VICTOR, NY - The New York Apple Association (NYAA) is beating volume estimates once again this year with another great late summer crop. Excellent growing conditions, including a late spring with warm weather, good rainfall, and cool nights have cultivated a harvest which is so far exceeding the 30 million forecast made this past July.

“We're very excited about the crop we have on our hands this year,” Julia Stewart, Spokesperson for the NYAA tells me. “Some people don't realize it, but New York State is the largest domestic source of apples east of the Mississippi and the 2nd largest in the United States. Especially with a crop of this quality on our hands this year, there's no need to look outside of New York for apples.”

Julia is especially stressing this last point to Empire State locals as part of an overarching “buy local” promotional theme this year. Over the last 10 years the NYAA has cultivated an impressive history of growing a wide variety of apples, including new varieties like Honeycrisp, Gala, RubyFrost, SnapDragon, along with traditional New York favorites. The NYAA is encouraging locals to reach out and enjoy the bounty they have right at their doorstep before looking elsewhere for produce.

“Part of our outreach program to our consumers this year has been a complete overhaul of our website,” Julia tells me. “Using our internal analytic numbers we have essentially rebuilt our site from the bottom up so as to more efficiently give consumers the information they look to us for.”

Check out the NYAA's website here.

Part of these changes include a new locator map, which allows customers to punch in their area code and be shown their local orchard or cider producer.

“It's all about showing people how close to home these great products are,” Julia explains.

In addition to the orchard tracker, the new website features a recipe section with over 100 great recipes aspiring chefs will want to check out. Having given it a look myself, I know there are certainly a few I'll be looking into.

To check out some of these great recipes for yourself click here.

In an innovative move, Julia tells me the NYAA will be crowd-sourcing the photos for these recipes so that apple lovers can snap pictures of the great creations they've made with the NYAA's produce and share it with their community.

Congratulations on the great year NYAA! I'll be looking forward to more good news from you in the future.  

New York Apple Association

SOLEDAD, CA – Braga Fresh has announced the promotion of Abelardo “Lalo” Pamatz to production analyst and Ashleigh Lombardi to sales coordinator.

“Ashleigh will be a great asset in supporting sales and keeping the service level high for our expanding customer base—her energy and attention to detail are outstanding,” said Peter Cling, Vice President of Sales. “Lalo’s direct experience with customers and orders over the past year positions him perfectly to move up into the analyst role and advise our harvesting operations how to plan as Braga Fresh continues to expand.”

According to a press release, Lalo has a year of experience with Braga Fresh as a sales coordinator, where he greatly impressed company executives with excellent work and dedication. In his new position he will be providing Braga Fresh with critical trend information and demand forecasts in order to maximize yields and make sure that farming operations meet increasing sales volumes for all of Braga's 20 fresh commodities.

Ashleigh has seven months of experience with Braga Ranch as an administrative assistant. Before signing on with Braga Fresh she attended Cal Poly, San Luis Obispo where she attained a Bachelor's Degree in Agribusiness.

Congratulations on the promotions, Ashleigh and Lalo!

Braga Fresh

SAN FRANCISCO, CA - Fresh Solutions Network has been named as a 2014 PMA Impact Awards in Excellence in Packaging finalist for its Side Delights® Gourmet Petite potato product line.

“We are excited about making the top 20 list for this prestigious award. We see packaging as an important component in increasing consumer’s engagement in the potato category, especially when packaging may be the only way for consumers to judge the quality of the product contained within.  High marks for our packaging translates to better sales on the shelf,” said Kathleen Triou, President & CEO for Fresh Solutions Network.

PMA reported that 56 companies submitted 67 entries, and the Impact Award Committee has selected twenty packaging submissions as finalists for 2014.

According to Triou, “The Gourmet Petite potato line was introduced in 2014 with the goal of providing a fresh new way to make every meal a little more interesting and enjoyable. With Side Delights Gourmet Petite potatoes, consumers can add the flavor, color and excitement of the specialty potatoes they find in fine-dining restaurants and see on their favorite cooking shows to the meals they make at home.”

“Consumers are looking for new ways to serve their favorite side dish (potatoes!), and growth of the specialty potato segment is leading the category at more than 9% year over year,” said Triou. “The Side Delights packaging is visually exciting and features contemporary, bold graphics and appetizing photography that grab shoppers’ attention. The stand-up pouch bag enhances shop-ability and the promise of convenience, further stimulating consumer trial.”

The company will be expanding distribution of the Gourmet Petite potato line during the 2015 season, according to a press release.  For tasty recipes that are uniquely adapted for the Gourmet Petite line, click here.

Congratulations on the honor, Fresh Solutions Network!

Side Delights

PORTERVILLE, CA - Homegrown Organic Farms is continuing to pick up momentum on this season’s Asian pear harvest.  Kicking off nearly a month ago, the company will continue to ship product through September.  The season began with the Hosui variety and will move into the Shinkos as September gets underway.  Supplies should be steady throughout the season.  Homegrown will be shipping out of its Kingsburg, California facility. 

“We’ve been expanding our fall fruit category and are excited to have a few new growers to represent this year.  All growers are located in the Kingsburg area and will help support our Homegrown Organic Farms fall fruit program,” Cherie France tells us. “It seems that every year we grow our program and yet demand still exceeds supply!  It’s exciting for us to be able to further enhance our offerings by providing these items.”

Additionally, Homegrown’s volume of Asian pears are up from last year with the addition of new growers and acreage.

“Quality is always our number one priority and this season is no exception.  We have had tremendous success with our fall-fruit thus far and as long as the weather continues to cooperate we don’t anticipate any quality issues,” Cherie notes.  The company will be offering its Asian Pears in both double and single layer trays depending on size.  Homegrown also has its cross-commodity display bins available. 

Asian Pears are also known as apple-pears given their round shape and crunchy yet juicy and hearty texture.  “They ship well and have a great shelf life. As always, we offer a full line of resources to help retailers merchandise and promote Homegrown products including grower photos and bios.”

As the specialty fruit sector continues to grow, so is Homegrown Organic Farms.

Homegrown Organic Farms

ZAANDAN, NETHERLANDS - Ahold has seen increased market pressure during the second quarter of 2014.  The company is reporting net sales of €7.4 billion, down 1.1%.  However, the retailer did see strong online Q2 sales of €29 million, an 18.6% increase.

“In a challenging competitive environment, we remain focused on executing our Reshaping Retail strategy and continue to make investments in our customer and value offering, making our stores a better place to shop,” said Ahold CEO Dick Boer.

In the United States, Q2 net sales were €4.4 million, which represents a 1.7% decline under last year for the same period, according to the company's Q2 financial report. Ahold says that Easter falling into the second quarter had a negative impact on sales. 

Check out Ahold CEO Dick Boer discussing the company's Q2 results by clicking below.

Ahold’s U.S. online grocery operation, Peapod, saw double-digit sales growth in the second quarter.  With the opening of a new warehouse in New Jersey, Peapod’s capacity will almost double and will consolidate its position as the leading online grocer in the U.S., according to a press release.

“In the United States, the roll-out of our program to improve our customer proposition is progressing well, bringing better quality, service and value to our customers.  By the end of this quarter, the program was active in 320 stores and will be rolled out to more than half of our stores by the end of this year.  The accelerated roll out of the program together with our decision to absorb commodity price increases resulted in an investment in margin that was partly offset by cost savings from our Simplicity program,” Boer said.

Looking ahead, Ahold expects ongoing investments in its customer proposition and further development of its product range across multiple categories to result in improving sales trends.  The retailer remains focused on executing its Reshaping Retail strategy and investing in its Simplicity program.

What can we expect from Ahold’s continued investments online, and how will the retailer’s new program improve sales in the next quarter?

Stay tuned to AndNowUKnow as we keep an eye on Ahold’s performance as the fiscal year continues.

Ahold