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

LOS ALAMITOS, CA – Frieda's Produce was named a trendsetter among the major influencers of American food culture by David Sax in his new book: “The Tastemakers: Why We’re Crazy for Cupcakes But Fed Up with Fondue.”

"Agriculture's tastemakers are arguably the most potent trendsetters in the world," he said.

By naming Frieda's among these trendsetters, Sax recognized the incredible influence that Frieda's has had not just on the produce industry, but the American public as well. Sax specifically recounts how through discussions with Karen Caplan, Frieda’s President and CEO, he learned how Frieda's played a major role in turning the kiwifruit from a specialty item into an every day staple for the American consumer.

According to a press release, Sax has also authored "Save the Deli: In Search of Perfect Pastrami, Crusty Rye, and the Heart of Jewish Delicatessen" and has won a James Beard Award for writing and literature.

Congratulations, Frieda's! I look forward to seeing the company featured in the new book.

Frieda's Produce

BOISE, ID - WinCo is expanding its in-store organics selection with a new all organics aisle in the produce section. According to the company's Facebook page, the new section is so far only being tested in select stores, but plans are in place to expand the program if it meets with success in this preliminary stage.

In response to a comment on its Facebook page a WinCo spokesperson wrote, “We're testing this area on a few stores...but we'll gladly let our Produce team know you want to see it in Oregon - thank you!”

So far the program has met with enthusiastic approval from loyal WinCo shoppers. WinCo highlighted one customer's comment which read: “I just wanted to say thank you for widening your selection of natural and organic products. You have the best prices in town and have saved me a trip to a second store by expanding choices! A special thanks for bringing back organic milk by the gallon, and introducing more organic produce.”

WinCo's actions reflect a growing demand for organic vegetables among American consumers. Earlier this summer for example, ANUK reported on a survey by the Organic Trade Association which found that 'heath' and organic foods are becoming increasingly synonymous for American consumers looking to feed their families. Retailers across the country are having to step up their organics game to keep up with this growing demand, and WinCo is no exception. 

To read more about this enlightening survey check out our article on the subject here.

Stay tuned to AndNowUKnow for any updates on WinCo and its partners in the retail industry.  

WinCo

NOGALES, AZ - SunFed has a new Director of Marketing: Brett Burdsal. The former Regional Director of Marketing at CMI has a big vision for SunFed's future. Talking with him, it is obvious how strongly Brett believes in SunFed's product and how excited he is to share that passion with retailers and consumers.

“I view SunFed like a sleeping giant in the industry,” Brett told ANUK. “There's no beating the quality of our product. Our squash, eggplant, peppers and melons; everything we grow here at SunFed can compete with any product on the market. Here we combine our core products with a strong organic program, our passion to foster new varieties and our new fair trade certification. With an innovated, forward thinking company like SunFed, I can focus fully on making a connection with our consumers and retail partners, demonstrating to them exactly why we're who they should lean on for their needs.”

The way Brett envisions SunFed doing this is through a concerted marketing push involving innovative packaging designs, labeling, new varieties and produce displays.

“A product's biggest impact with the consumer is always going to be at the shelf,” Brett explained. “I want to tell the story of our product through our packaging in an innovative, unique way that consumers will be drawn to.”

Brett's skill of communicating with consumers through packaging is a large part of the reason that Mark Cassius, SunFed's Chief Innovation Officer, reached out to him about joining the SunFed team.

“Brett brings a wealth of passion, knowledge and leadership to SunFed as his lighthearted approach resonates with consumers,” Mark shared. “Additionally Brett has built a track record of success providing category solutions to key retailers. We are extremely happy to have Brett join our SunFed team.”

Brett knows all too well that marketing directors can often get overwhelmed by the sheer variety of techniques and outlets available to them in the modern economy, with social media outlets and online marketing campaigns becoming increasingly popular. While he acknowledges the importance of these many techniques, Brett understands that the fundamental relationship between grower and buyer is built in the retail aisle not on Facebook.

“Good packaging does more than keep the product fresh,” he reminds ANUK. “It also keeps your brand, your story, fresh and relevant.

With this perspective in mind, it certainly looks like SunFed has found a great asset in Brett.

Congratulations on the new position Brett!

SunFed

WENATCHEE, WA – Oneonta Starr Ranch Growers has launched its 2014 pear season, and it is excited about this year's crop. Oneonta Marketing Director Scott Marboe talked about his company's Bartlett pears in particular, which he described as a big, clean crop with mostly 90s and larger in terms of size.

“We are very excited to officially kick off the new season with 'Diamond Starr Growers' Bartlett pears,” Marboe said. “This is a clean and well-sized crop, one we know is going to bring great results to the category.”

He added that “There's not much in the way of small fruit, but a very strong market for cannery will keep a stable price floor.”

Bartletts are not the only variety Oneonta has in store for retailers this season either.

“Red Anjous and Starkrimson are really looking good this season,” Marboe said. “There is excellent color at this time of year, and we should start on the Starkrimsons about Aug. 11, then sail right along with the other varieties in a timely manner.”

According to a press release, Oneonta also grows, ships, and markets Bosc, Forelle, Comice, Seckel, Asian and Red Sensation pears under its Diamond Starr Growers label.

Bartletts, Starkrimsons and Red Sensations will be available to retailers through December, with Seckels, Comice and Asians shipping during winter, and Red and Green Anjous shipping from late summer or early fall into the following summer.

Oneonta is committed to assisting its retail partners in any way it can, providing high-graphic POS for its “snaQ” programs for its pears and apples. This program targets younger children with illustrations sharing information on varieties, health tips and eating suggestions in a kid-friendly way.

According to a press release, Oneonta prides itself both on the quality of its fruit as well as a commitment to food safety standards. It has implemented GAP standards into its  growing, harvesting, warehousing, packing, storage and shipping operations, all part of an effort to keep customer safety a top priority.

Check out Oneonta's feature video on its pear harvest below:

Diamond Starr Growers Pears from Oneonta Starr Ranch Growers on Vimeo.

Congratulations on a great looking crop Oneonta!

Oneonta Starr Ranch Growers