MEXICO - It’s looking to be a tight mango market ahead as we move through the season in Mexico.  Currently, growing regions are reporting quite a bit less out of Mexico to-date. Freska Produce International tells AndNowUKnow that the industry estimates suggest that volumes are down 6 million boxes compared to the same time last year, but the real decline in volume has been over the last month or so as the season has progressed to Northern Mexico. 

“The Southern Mexico deal was fairly normal, but as of late, the Northern deal has declined pretty significantly.  Some of this is related to weather conditions and off bearing trees but the forecast going forward looks like less fruit than last year overall by a significant amount,” Gary Clevenger, Freska's Co-Founder and Managing Member, tells us.

“When volume declines, its normal to see some increase in price, but this year has been unusual because promotions have been lacking on the retail side leading to inventories sitting on shelves and not moving as fast. We'll have to get more creative with our sales,” he notes.  

Larry Nienkerk, Founder of Splendid Products, agreed with this assessment, telling ANUK, “There has been a real lack of clear information from the growers this season, which has lead to very few specials being put out on the market. Given that these specials are a major market driver, their absence has a profound effect on sales numbers.”

As the industry continues moving forward, the forecast is for less fruit out of the Los Mochis region of Mexico, which winds down the season from Mexico.

“In previous years, volume was much higher out of the Nayarit and Sinaloa regions.  But, quality has been pretty decent. With less fruit in the tress, there are more good looking size 10’s and larger and not many smaller sizes like 12’s,” Gary tells us.

For Freska, the Mexican mango season began in February and will most likely taper off in September this year. Currently, Mexico is the major growing region for mangos, and there are not enough supplies in other growing regions to rock the market or make a really significant contribution to the market.

“Promotions will be slim until the Ecuador/Brazil seasons go head-to-head in November. There will still be good availability on most sizes, but pricing will not be as low as it has been when there was significant volume,” Gary notes.

Stay tuned to AndNowUKnow for the latest updates on the mango market.

Freska Produce

Splendid Products

UNITED STATES - These 3 supermarket technologies could change the way the retail business is done in the near future:

ShoppingScout

ShoppingScout, a free web and mobile application organizes and simplifies the shopping process with advanced analytics. ShoppingScout captures a consumer's Intent-to-Buy for retailers, helping to unlock the 'why' behind purchasing and store-selection decisions.

The app is as powerful as it is simple to use. Users log on through their smartphones to create shopping lists which ShoppingScout's sophisticated algorithms use to learn about the consumer's preferences. It turns this data into an optimized, personalized shopping list based on the stores the user is willing to consider, their indicated product preferences, and other factors including price and health attributes such as organic and gluten free.

In the future, Engage3, the makers of ShoppingScout, plan to use this data in a revolutionary way: to make personalized offers a viable retail tool. Take a ShoppingScout user who regularly buys blueberries for example. Current attempts at personalized offers such as Safeway's 'Just for You' program, would target the blueberries with a coupon deal. ShoppingScout however would recognize this behavior will likely continue without the need for intervention, and instead would look to incentivize the purchase of a similar produce item that would fall in line with the preferences of a blueberry lover. Maybe a two-for-one deal on raspberries for example. Manufacturers could even use this data to study the price point at which a particular group of consumers would be likely to switch brands, giving produce marketers a powerful new tool in their arsenal.

“The average family makes 3,000 purchasing decisions per year, with over 100 options for each. That’s a total of at least 300,000 options - no one has that much time,” Ken Ouimet, Engage3 Co-founder told ANUK. “So we offer a computerized agent with artificial intelligence. This takes all the stress off the shopper, by evaluating all the options for them. The agent determines what products should be purchased, and at what stores. We can save that family roughly 30% on their shopping. That’s a very powerful thing, especially given that the application is free.”

ShoppingScout 

Aisle411

This app is the Google Maps of the retail aisle. Its design is as powerful as it is simple. A customer merely punches in the name of the item they're looking for, whether it be oranges or Oreos, and the app shows them a map of the store, guiding them to the product in a quick and seamless manner. With participating retailers such as Hy-Vee, Shop'n Save, Schnucks, and WinCo Foods, Aisle411 promises to be a big time saver for consumers working their way around crowded retail aisles, as well as for store managers wondering how to best display their products in an easy-to-find manner.

Aisle411

Kroger's QueVision

Mashable, a tech news website, notes how the retail giant Kroger has introduced a new management aid system, QueVision which alerts store managers when more registers are needed to prevent long lines at checkout. The technology works by tracking the number of people both entering and leaving Kroger stores with heat-sensitive infrared sensors. When the number of customers in a store passes certain thresholds, managers are alerted that registers either need to be open or closed to accommodate the change in store population.

If you'd like to learn more about Kroger's QueVision system check out ANUK's past article on it here.

Kroger

Stay tuned to ANUK for more exciting supermarket technologies!

WASHINGTON, D.C. – United Fresh is gearing up for The Washington Conference on September 8-10, 2014 with a fun video featuring United Fresh Board members lip-syncing to "Ain’t No Stopping Us Now."  You gotta see this! Make sure to check it out below.

Here are some of the activities taking place at this year’s conference:

• Opening Party on Rooftop Terrace Overlooking the Capitol:  This year’s opening party is bigger and better than ever before! You’ll enjoy one of the best vantage points in the city on the Rooftop Terrace of Charlie Palmer Steak, all while networking with produce industry friends and partners.
• United FreshPAC Reception & Dinner at the Capitol Hill Club:  The United FreshPAC reception and dinner will be held at the famous National Republican Club of Capitol Hill. This prestigious reception brings together members who have made a personal commitment to the United FreshPAC to strengthen the produce industry. For more information, contact Angela Tiwari at 202-303-3416. 

• Fresh Festival on Capitol Hill:  At this unique event that’s become one of the most talked-about receptions in DC, you’ll network with members of Congress, their staff and key administration officials as they sample the colorful and flavorful items of our industry. 

• New Member & First-Time Attendee Welcome:  This special reception welcomes United’s newest members and first-time conference attendees. Make new contacts and learn about how you can get more involved with United! (Invitation Only)

• Leadership Alumni Organization Dinner:  Following the Opening Party, United Fresh Produce Industry Leadership Program alumni will gather at Charlie Palmer Steak Alcove. The program, which was first started in 1995, has graduated nineteen classes of produce industry leaders. For more information, contact Victoria Backer at 202-303-3408. (Invitation Only)

The conference will also feature sessions and activities like business education sessions, congressional meetings and forums with regulatory officials.  To register, click here.

United Fresh

CHARLOTTE, NC - Chiquita shares climbed this morning as the company reported its second quarter financial results.

As of 12:40 PM ET, shares are up $0.54 to $10.20, a 5.59% increase revealing positive relative strength as the company nears the closing of its announced merger with Fyffes.  Check out this five day snapshot of Chiquita's stock:

The company earned profits of $18 million in the second quarter of this year.  This is a 42% decrease from the same quarter last year.

"Our second quarter results reflect sequential improvement versus the weather-impacted first quarter and versus year ago overall. We remain on path toward the long-term goals established with our 'return to the core' strategy despite substantial headwinds in the quarter and year to date," said Chiquita CEO Ed Lonergan in a statement.  “We realized value and volume sales increases in our banana operations, but reduced productivity, principally due to dry weather, on both owned and third-party farms in Central America resulted in higher sourcing costs and less fruit to sell in our weekly pricing markets.”

The company’s revenue actually climbed just under 2% in Q2 to $826 million, but its costs of sales grew at 3% and affected profit margins.  Bananas are still the largest seller for Chiquita, accounting for $537 million in sales during the quarter, ror a 3% increase.

Lonergan added, "We continue to make progress toward our proposed combination with Fyffes. We are confident this merger of equals unites highly complementary businesses and teams, and will enable us to improve service and reliability to customers while improving the efficiency of our operations. Our shareholder meeting to approve the transaction will take place on September 17, 2014, and we expect to close the transaction by the end of the year, subject to satisfaction of previously announced closing conditions."

Chiquita expects to achieve run-rate EBIT margins of 4% for bananas and 7-8% for salads by the end of 2015.

Stay tuned to AndNowUKnow as we continue to follow Chiquita and its merger with Fyffes.

Chiquita

TEWKSBURY, MA - News is breaking that Hannaford Bros. has entered a serious offer to purchase majority control of Market Basket from Arthur S. Demoulas' side of the family, one which makes Arthur T. Demoulas' own attempts to obtain majority control of his family's business a lot more complicated.

Kevin Griffin, publisher of the Griffin Report on Food Marketing, told the Boston Globe that Hannaford has a lot to gain from a Market Basket acquisition.

“When I think about the geographic locations of Hannaford and Market Basket, there’s some overlap, but I think they would be mostly complementary,” he said.

Arthur T. Demoulas and his side of the family currently enjoy control over 49.5% of the controlling shares for Market Basket, a number he has been trying to increase with attempts to buyout control over the 50.5% of the business owned by his cousin Arthur S. Demoulas' side of the family. Until now, Arthur T. Demoulas was the clear front runner in buyout talks and considered by many Market Basket's only chance to restore peace after the labor controversy his firing early this summer created.

For more on that controversy check out ANUK's previous article here.

What a Hannaford acquisition would mean for Arthur T. Demoulas is unclear. Potentially, Hannaford executives could return Arthur T. Demoulas to his former position as President and CEO of the company.

“The problem there is they would have to have a lot of faith in Arthur T., and you can basically never get rid of him if it doesn’t work out,” Gary Chaison told the Boston Globe. “But I think the only way out is a return to the past, with Arthur T. getting his job back.”

James J. Hanks, a specialist in mergers, acquisitions and corporate governance at Northwestern Law School, sees the possibility of other courses of actions. If Hannaford wanted its own candidate in the CEO seat, it could offer Arthur T. Demoulas a lesser position of influence within the company such as an executive advisory role.

There is also the possibility of an attempt to force Demoulas' hand to get him to sell his own shares of Market Basket.

“The buyer could go to Arthur T. and play hardball and say, ‘We have the votes to merge Market Basket with our chain that we own 100 percent,’ ” Hanks said.

This would dilute Arthur T. Demoulas' ownership shares, dramatically weakening his influence within the company.

With so many variables in the equation, the simple truth is that it is hard for anyone to predict what will happen next for Market Basket. When the news does break however, you can count on AndNowUKnow to be there first to keep you in the know.

Market Basket

Hannaford Bros

ANTIGO, WI - Volm Companies is celebrating 60 years of innovation this year.  In 1954 Gerald Volm, founder of the company, opened a small farm supply store carrying burlap potato bags in the rural community of Bryant, Wisconsin.  Volm then formed distributor relationships with other bag companies and moved its growing business to Antigo, Wisconsin where it began manufacturing its own bags to meet changing market needs. 

In addition, Volm has invested in a packaging equipment manufacturing business and partnered with several equipment suppliers to be able to provide complete solutions for growers, packers and processors.  Volm has since expanded to include multiple manufacturing, sales, and distribution locations across the nation with sales support in Canada as well.

Matt Alexander, VP of Sales & Marketing tells us, “As Volm continues to make strategic investments in North America to strengthen its core fresh produce business; the future is bright and full of opportunities.  Customers can expect to see a constant stream of innovative packaging and equipment solutions from their trusted long term partner who understands the fresh produce supply chain from packing facility to market shelf.”

The company continues to follow Gerald Volm’s example by serving customers the high value solutions they need, along with the personalized customer service they deserve.  Volm will continue to celebrate their anniversary throughout the year at various events including October’s PMA Fresh Summit where they invite their customers and attendees to join them at their booth.

Volm Companies

HOUSTON, TX - After 50 years of dedication to the produce industry, FreshPoint Dallas President Lucian LaBarba, has decided to retire. As of July 23rd, when his retirement officially went into effect, the longtime produce veteran will be letting a new generation of leaders take over business operations.

“Everyday you got to defend your turf,” Lucian tells me.  It is a principle that he has lived by.  “You get customers and develop customers over a long period of time.  We were taught by the best, and the only way you maintain these relationships is by working and helping them everyday.”

LaBarba first got involved in the produce business as a teenager, working for his family's company, American Pre-Pack.  “Becoming a Produce Man started at 14 years of age, there was no after school care, we went to the Market, we were taught the LaBarba Family Brand. Work came with a lot of discipline; that, we all proudly followed,” Lucian said. "It started with my Dad, Carlo, and Uncle Ernest, they were strong teachers. That is where I learned to treat all with class and dignity. 'Be Fair' -- that was their motto."

After cutting his teeth in spinach packing operations, he transitioned to his family’s wholesale produce company in the Dallas Farmers Market where he learned important lessons on working with customers and upholding the LaBarba way of doing business.

In 1981, the company changed its name to American Foodservice, whereupon LaBarba spent the next several years working in its sales department. The company was later purchased by Sysco's FreshPoint, after which LaBarba remained a major company leader until his retirement.

In a letter to his family of associates, Lucian said, “The Family to me means all of our Associates and their Families, this is why we go to work. To our Vendors they have always taken on our business and known how personal it was to us. And to our Customers, we never sold anybody, we helped them with their needs. For 97 years, we pioneered many new products and brands with quality and value. To all of our valued Customers and Friends nothing would be possible without the great support that we have received. When I think about our many friends, I can say thank you to all. I say thank you from all of us and our Family of Associates. It has been a great ride.”

Congratulations on your retirement, Lucian! We wish you the best.

FreshPoint

MOSCOW, RU – Russian President Vladimir Putin has ordered one-year limitations on food and agricultural imports from countries that have imposed sanctions against Russia over its actions in Ukraine.

Though the full list of products to be banned or limited is not yet published, Reuters reports that the Russian state news agency stated on Wednesday that Russia will ban all imports of food from the United States and all fruit and vegetables from Europe.  Alexei Alexeenko of Russia’s Plant and Veterinary Oversight Service was quoted as saying “from the USA, all products that are produced there and brought to Russia will be prohibited.”

The Associated Press reports that White House spokeswoman Laura Lucas Magnuson decried the import ban, saying "Retaliating against Western companies or countries will deepen Russia's international isolation, causing further damage to its own economy."

Food and agricultural imports from the U.S. amounted to $1.3 billion last year, according to the U.S. Department of Agriculture.

In an emailed statement to reporters, the American Farm Bureau Federation President Bob Stallman said, “This is clearly a political move. It is unfortunate that the biggest losers in this will be Russian consumers, who will pay more for their food now as well as in the long run. America's farmers and ranchers would have been more surprised if Russia’s leaders had not announced bans and restrictions on food and agricultural imports. They do so regularly for seemingly small reasons and now they have to deal with sanctions imposed by our nation and others."

We reported earlier this year that U.S. sanctions against Russia could have a direct impact on U.S. exporters.  Russia is the largest importer of apples and pears in the world, according to the USDA.  The U.S. exported an estimated 16.1 million pounds of apples to Russia in 2012, and an estimated 15.6 million pounds of pears in 2013.  To read more in our previous article, click here.

For now, we will have to wait and see what effects these bans will have on U.S. agricultural exporters.  Stay tuned to AndNowUKnow as we continue to track this ongoing story.

HOUSTON, TX – Executive Vice President and President of Foodservice Operations Mike Green has announced plans to retire after a 24 year career with the company.

"Mike has been a strong and impactful leader throughout his 24-year career with Sysco, playing an important role in the development of several of our key leaders," said Bill DeLaney, Sysco President and Chief Executive Officer. "We greatly appreciate his many significant contributions to Sysco's success, and we wish him the best upon his retirement."

Green started his career in the foodservice industry in 1981 after which he spent 10 years working in various management roles before taking a position with Sysco Chicago in 1981 as part of Sysco's management development program. By 1992 he was working as the Vice President of Marketing and Merchandising. He worked his way up the chain of command steadily throughout the years, eventually assuming his current position in 2013.

According to a press release, Sysco is still in the process of identifying Green's successor.

Stay tuned to AndNowUKnow for any updates in Sysco's hiring process.  

Sysco

SALINAS, CA – TransFresh Corporation, a wholly-owned subsidiary of Chiquita Brands, has significantly modified its flagship technology, Tectrol® Modified Atmosphere Packaging Systems, to deliver more consistent supplies of fresh blueberries.

This marks the successful completion of a multi-year research and development initiative that created a unique Tectrol Storage Solution that uses Apio’s patented BreatheWay® Technology to deliver a sealed package system with adjustable oxygen transfer rates that react to changes in temperature and berry respiration, according to a press release.  This will allow for more reliable fresh blueberry storage.

“What’s remarkable about the Tectrol Storage Solution for fresh blueberries is that the innovative zip-sealed pallet system combined with the patented breathable membrane allows just the right amount of oxygen transfer needed by the fruit, resulting in greater atmosphere control than previously possible and a virtually fool-proof packing operation,” stated Rich Macleod, TransFresh Corporation Vice President. 

“Customers who may have struggled in the past to meet the specific atmosphere needs of fresh blueberries are now finding they have a new solution available with higher consistency and a more stable atmosphere for greater storage reliability,” he said.

These innovations should give customers more confidence in their storage solutions by being able to more effectively match supplies with market demand.  TransFresh hopes to be able to adapt this technology to other commodities like fresh cherries and grapes.

Reilly Rhodes, TransFresh Tectrol Business Manager for fresh blueberries, spearheaded the multi-year development project.  When speaking of the ‘A-ha’ moment in the process, he said, “We redesigned our seal system for the fresh blueberry market and then married the redesigned seal and bag with the Apio BreatheWay® technology… at that stage, we were no longer simply adapting a successful program for fresh strawberries to fresh blueberries, we were actually creating a new and highly adaptable solution designed specifically for fresh blueberries.”

Domestic markets have sold 15% more blueberries this year than last and represent a fast growing berry segment, according to a press release.  The ability to hold blueberries in a modified or controlled atmosphere conditions helps to alleviate difficulties in market supply and demand.

TransFresh