Analysts Weigh In On Chiquita Merger Options



CHARLOTTE, NC - As we reported on Monday, the Cutrale Group, one of the leading global agribusiness and juice companies, and the Safra investment group extended a $610.5 million buyout offer to Chiquita Brandsthrowing question marks into its proposed merger with Fyffes.  Now, analysts are weighing in.

Analysts at US financial house BB&T Capital suggest that Chiquita might prefer a Fyffes merger to a takeover, and Cutrale would need to improve its offer significantly to have a better chance, according to the Irish Independent.

In a note to clients, BB&T’s Brett Hundley called the two bids “apples and oranges” with tax benefits of the Fyffes tie-up being more attractive than Cutrale’s $13 a share offer.

“We have called the company’s $40 million synergy target by 2016 as conservative.  Further, we think that Chiquita-Fyffes would be an unlikely target of any US government tax inversion law, as the expected tax synergies are modest,” Hundley said.

Hundley believes that the Fyffes deal offers more value to Chiquita at present.  However, if Cutrale and Safra make an improved offer with anything above $15 a share, it would be much harder for Chiquita to turn down.

“In short, we believe that the Fyffes merger offers potential year-one value, under a number of scenarios.  We think Chiquita management likely agrees with us,” he added.

To read our full article on Cutrale/Safra’s offer, click here, and for a look back at the Fyffes proposal, click here.

Stay tuned to AndNowUKnow as this story continues to develop.

Chiquita

Fyffes

Cutrale

Safra Group


WinCo Planning 4 New Store Openings in Oklahoma City



BOISE, ID – WinCo Foods LLC is looking to expand its footprint into Oklahoma.

Commercial real estate firm Price Edwards & Co. told The Oklahoman that WinCo is finalizing leases to open as many as four stores in the Oklahoma City metro area.

Jim Parrack, Senior Vice President of Retail for Price Edwards, told The Oklahoman that WinCo is currently looking at locations in northwest and west Oklahoma City, Moore and Midwest City.

As we’ve reported throughout the year, WinCo has also made its first step into Texas with a distribution center and three stores in the Dallas/Fort Worth area.  That distribution could easily serve any Oklahoma stores.

WinCo currently has 95 stores and five distribution centers across Washington, Idaho, Nevada, California, Oregon, Arizona, Utah and Texas.

With WinCo expanding to both Texas and Oklahoma this year, where might stores start popping up next? 

WinCo


Robot Butler Automates the Hospitality Industry



CUPERTINO, CA - Starwood Hotels’ Aloft brand has a new employee; A.L.O. the Botlr, or robotic butler

A.L.O., pronounced “el-oh,” will soon be on call all day and night to fulfill requests from guests.  CNBC reports that all a guest will have to do is call the front desk and the staff will load up the Botlr with requested items, enter the guest’s room number and send it off to make the deliveries.  A.L.O. will navigate hallways and even call the elevator using Wi-Fi.

With Botlrs making the move from science fiction to reality, how long before we see robots picking fruit or washing vegetables?  My guess is that it will be quite some time.  For now, we will have to watch and see how Botlrs fare.

A.L.O. is being fine-tuned for an August 20 official launch of its pilot program.  If this test is successful, Botlrs could appear in nearly 100 properties.  Brian McGuinness, Senior Vice President for the Aloft brand could see one or two Botlrs in each Aloft hotel.  “I think there is a chance that this could go enterprise-wide based on a successful pilot,” he told CNBC.

Sunnyvale, California start-up Savioke designed and built the Botlr with a seed round of funding of $2 million from investors, which included Google Ventures.  Company CEO Steve Cousins told CNBC that he sees a huge market for service robots.

Innovations like A.L.O. have the potential to change the way that we work.  One day, we may see robots in hospitals carrying medicine and sterile equipment, on the dock moving heavy pallets loaded down with fruits and vegetables or in the aisles at a grocery store restocking a fresh produce display.  I for one am excited at the possibilites this new technology could bring.

Do you think robots will have a place in the future of the produce industry?  Let us know by taking the survey below!


Online Grocery Shopping Expected to be a $9.5B Industry By 2017



LOS ANGELES, CA - Fusion Marketing's Consumer InsightsTM research is suggesting the emergence of an important consumer preference shift, revealing that the modern consumer is 200% more willing to engage in the online grocery marketplace compared to this time last year. By 2017 Fusion Marketing expects this marketplace to have grown exponentially in size into a $9.5 billion industry, $1 billion for fresh produce alone.

Steven Muro, President and Founder of Fusion Marketing“We are witnessing consumer perception change from being reluctant to buy to testing the waters and making purchases,” explains Steven Muro, President and Founder of Fusion Marketing. “Consumers typically aren’t spending a lot online overall. Our research conducted in 2013 and 2014 indicates that a larger percentage of consumers have made a produce purchase, but many spent under $25.00 per shopping occasion.”

One example of this increasing comfort level is revealed by a significant drop in consumer's concerns over the food quality and freshness of the produce they received via online shopping markets. According to a press release, today's consumer is much less concerned about whether their food will arrive fresh. Fusion Marketing suggests this is due to previous positive online shopping experiences in which expectations were met, creating a new bond of trust between online retailer and consumer.

How many dollars of profit for the industry this growing bond will develop into is still an open question. If Fusion Marekting is correct however, its looking to be a very nice number.

Fusion Marketing


Target Hitting Reset Button On Canadian Supply Chain Operations



MINNEAPOLIS, MN - Target executives say that they are hitting the "reset" button on the company's supply chain operations, in order to repair the damage done by what many have characterized as an overly hasty Canadian expansion.

Mark Schindele"With the benefit of hindsight, if we could do it all over again, we wouldn't have opened up that many stores, that many DCs (distribution centers), in that short a time frame. I know that much," Target Canada's President Mark Schindele told Reuters. "We're now unwinding some of the decisions we made that were based on speed."

What does this mean for Target going forward? Target hopes that its three pronged approach focusing on its supply chain, pricing, and merchandise selection will prime the company for increased future growth.

According to Reuters, Target's plans start with a full recount of its inventory at all 130 stores in order to “reset” an overburdened supply chain.

The emphasis on speed during Target's earlier expansion caused multiple problems with the set-up of its online systems for tracking product distribution. This led to a major bottleneck, according to Schindele, with orders arriving at warehouses that did not match the records in Target's computers.

"If your data integrity isn't good, it's really hard to keep stores in stock," he said.

Target Canada is now in the position to fix these problems. Together with the planned supply chain reset, they now have the sales data after a year of Canadian operations to more accurately predict consumer demand and allocate resources to meet it.

In addition to an infrastructure reorganization, Schindele says Target will also be retraining its staff to better work with the company's inventory system.

In all, Target should walk away from this period with a better trained staff, a more robust inventory system, and a stronger supply chain. Schindele is confident that these changes will give Target the tools it needs to take on the challenges and opportunities of the future.

"We expect to see measurable progress this fall," Schindele noted optimistically.

With these steps in place, I certainly think Target has given itself the right foundation to make a rebound possible. How successfully Schindele and his team is able to implement their growth plan will play a big part in determining the future success of Target's Canadian operations. 

Target 


Meijer Sets Opening Date for Four New Stores



GRAND RAPIDS, MI – Meijer Inc. will open four of its new Wisconsin combined supermarket-discount stores next year.

Frank Guglielmi, Meijer’s Senior Director of Communications, tells the Milwaukee Wisconsin Journal Sentinel that the company plans to open stores in Kenosha, Grafton, Oak Creek and Wauwatosa in 2015.

Meijer also has plans to open area stores in Waukesha and Greenfield.  Waukesha’s Plan Commission is conducting a final site plan review this Wednesday, and Greenfield’s Plan Commission is conducting a conceptual review this Tuesday, according to the Journal Sentinel.

“We are also talking to numerous other communities, but can’t confirm those sites yet,” Guglielmi added.

These stores are the start of Meijer’s move into the Wisconsin Market.  In March, we reported that Meijer revealed plans to expand its footprint into that state.

“We expect to concentrate a lot of our expansion the next few years in Wisconsin,” Meijer noted.  “Milwaukee ought to be able to support a dozen stores, but whether we will find a dozen sites in short order is another question.”

For the full article on Meijer’s expansion plans, click here.

Meijer has also recently announced a new distribution center in Wisconsin with the $146 million purchase of an existing facility.

The distribution center is expected to serve stores in states that include Wisconsin and Illinois.  “This is great news for Kenosha County, which has proven that it is a very attractive area for job creators looking to grow and expand here in Wisconsin,” said Governor Scott Walker.  For more information on this new distribution center, view our previous article by clicking here.

Stay tuned to AndNowUKnow for the latest information as Meijer continues its rapid expansion.

Meijer


Sunkist Growers Relocating Headquarters to Valencia, California



SHERMAN OAKS, CA – Sunkist Growers has announced plans to move its headquarters from Sherman Oaks to Valencia, California this fall.

“This is an exciting time for Sunkist Growers,” said Sunkist President and CEO Russell Hanlin. “In the past few years, we have made significant advances on key strategic initiatives to position Sunkist for long-term growth and profitability – and the relocation of our headquarters is part of that strategy. We look forward to welcoming our growers, customers, licensees and other business partners to our new home in Valencia.”

Sunkist’s new building will be situated between the I-5 Freeway and the Magic Mountain theme park at 27770 N. Entertainment Drive in Valencia, according to a press release.  This location is also closer to Sunkist’s multiple growing areas and allows the company to keep its current employee group intact.

The Sunkist cooperative of family farms was founded in 1893 and offers more than 40 fresh citrus varieties.

Good luck on the move, Sunkist!

Sunkist Growers 


Scientists Breed New Variety of Blue and Pink Potatoes



BELARUS -  Belarusian scientists have just finished a nine-year breeding process that could soon bring pink and blue potatoes to the produce aisle. According to Ivan Kalyadka, head of the Research Centre for Potato Cultivation and Horticulture at the Belarusian Academy of Sciences, the new potatoes preserve the hearty taste of traditional white-yellow potatoes, while offering customers a whole new color palette to choose from when designing their dishes.

According to BBC, the new potatoes are slated to be used in a variety of dishes in the food industry with plans to incorporate them into everything from chips to instant mashed potatoes. First however they will have to finish their current rounds of state testing.

Once they are released to the market it will be interesting to see how these new potato varieties effect consumer purchasing decisions. A study conducted by Rajesh Bagchi, Associate Professor of Marketing in the Pamplin College of Business, and Amar Cheema, from the University of Virginia, showed that in the retail environment the color blue tended to correlate with a higher willingness-to-buy.

“Because these consumers were also only competing with the seller, purchase likelihoods were lower with red backgrounds compared to blue, indicating that their willingness to pay may have been lower,” Bagchi told writers at VirginiaTech.

It's too soon to tell whether a feature backdrop of blue potatoes might spur increased spending in the retail aisle. I'll be certainly be paying attention however.  

I'll have to send Mr. Kalyadka an email asking if he can cook up some orange and black potatoes in time for next year's baseball season. The Giants are famous for their garlic fries after all you know.  


Avocados from Peru is Launching a National Radio Promotional Campaign this Summer



PERU - Avocados from Peru is ramping up its U.S. presence with a host of radio campaigns this summer to promote the popular fruit. The initiative, which has gained momentum, is now expanding on a national scale. Initially kicking off with a soft launch, the campaign has evolved from 8 markets to 25 and spreading. More than 120 stations are airing over 25,000 Avocados from Peru spots. The campaign is slated to extend over a 10-week period, providing a unique platform for marketing Avocados from Peru and establishing the origin as a competitive player in the game.

“Peruvian avocado volumes have seen unprecedented growth this season. This campaign creates a new type of media experience for the avocado category and is a part of the Peruvian Avocado Commission’s expanding international brand platform.  The summer months are a great time to promote avocados and Peruvian avocados are one of the only origins at this time, promoting such a strong marketing campaign at a national level,” Xavier Equihua, CEO of the Peruvian Avocado Commission (PAC), tells me. “These radio commercials provide each customer and station with the chance to record unique messaging with their own individual nuances and flare.”

One of these popular campaigns promotes “5 avocados for $5” and is being utilized by Giant and Stop & Shop in the organization’s top East Coast markets in New York and New Jersey, each lasting about a week.  

“This ‘5 for $5’ campaign is a great example of how micro-tailored this campaign is.  Instead of offering a pre-recorded spot with a tag we are offering retailers an opportunity to fully customize their promotions through radio spots.  We believe this is a first for the category at the national level," Xavier notes.

Avocados from Peru is also ramping up its social media presence on the web and on its Facebook page, to support the radio campaigns and international platform.  This month, the Association is looking to launch several more social media initiatives.  So, keep on the look out.

Avocados from Peru is Launching a National Radio Promotional Campaign this Summer

The Association is partnering with two radio stations in Los Angeles, California, to offer kitchen prize packs for a Avocados from Peru Color Kitchen Makeover with kitchen accessories such as an avocado-green Kitchenaid Mixer, oven mitts, wall clock, and Benjamin Moore avocado green paint.  On the horizon, Avocados from Peru will begin on-air demos in select markets that will include coupon giveaways and contests tailored to regional demographics.  Other stations are taking the Avocados from Peru program to their own websites for contests, recipes introductions and consumer engagement.

“This different approach to traditional radio spots and tags stays away from pre-recorded messages that tend to be very specific and inclusive in style.  Everyone has their own messaging…from country music to top ten.  This platform is a collaboration that gives our partners the best tools we can, to deliver the message.”

“We will deliver our avocados directly to the show locations, allowing DJ’s to create a conversation around recipes, usage and of course the wonderful flavor and versatility. This advertising and consumer response is continuing to drive retailer interest in our campaign. It is an exciting time.”

This season will see the largest crop of Peruvian avocados to-date, ready and waiting for promotional opportunities. The company tells me that no other avocado brand has offered so many radio market programs during a specific period at a national level, in this case the summer months.

“Demand for fresh avocados in the United States is increasing approximately 10% every year and Peru is poised to meet this growing consumer demand, as we are demonstrating this summer,” added PAC Board Chairman Enrique Camet. 

 

Stay tuned for more buzz from Avocados from Peru.

 Avocados from Peru


3 Innovative Supermarket Technology Advances: Part 2



ANUK has 3 more supermarket technologies that could change the way the retail business is done in the near future:

Self-Serve Scanning

 

Recently acquired by Catalina Marketing, Modiv Media is pioneering self-serve scanning technology. According to Mashable, an online tech publication, the hand-held in-store scanners and Stop & Shop SCAN IT! mobile app which it has developed allow customers to ring up their own purchases as they shop, eliminating the need for the long checkout lines that are as much a headache for shoppers as they are for managers.

Automatic Checkout

IBM is developing a technology for the Australian grocery chain, Coles, that would a eliminate the need for checkout lines altogether by installing radio tags on store products. As the customer walked out the main doors with their groceries, the system would record the tag numbers and bill their credit wirelessly through the customer's smartphone.

Goodbye Barcodes

Mashable notes how Toshiba has created a new scanner which uses pattern and color recognition algorithms to identify any product in a grocery store. No barcodes needed!

Toshiba's Keichi Hasegawa explained, "Fruit and vegetables in supermarkets don't usually have barcodes because they're put out while they're fresh. So these items can't be read at the register using barcodes which means staff need to input data to record them....[this] can cause delays. We're developing this new scanner to solve that problem."

DigInfo published a feature video on Toshiba's technology. Check it out below:

If you liked these innovative ideas, be sure to check out part 1 of our series on supermarket tech innovations here.

Stay tuned to ANUK for more exciting supermarket technologies!

Modiv Media

Coles Supermarket

Toshiba