CALIFORNIA - With 4^th of July festivities approaching, grapes have been in high demand as growers are making the transition from Coachella/Mexico to the San Joaquin Valley.

There is currently a high demand for reds that has kept prices around $20 - $22, and greens around $22 - $24. With prices at such high levels, we’ll still have to wait and see if the transition will have any effect on pricing.

Rob Spinelli of Anthony Vineyards tells AndNowUKnow that they finished harvest in Coachella around the 25^th and started Arvin harvest in time for the 4^th of July pull.  “Mexico and Coachella finished early so everyone made the switch to Arvin,” Spinelli said.  He expects to see steady demand even after the holiday.

Jim Llano of Castle Rock Vineyards tells us that they are currently finishing their last variety in Coachella, but have already started at Arvin to stay ahead of the high demand for Flames, Summer Royals and Sugar Ones.

Randy Giumarra from Giumarra Vineyards is optimistic that demand will remain strong and sees pricing staying in the $18 range through the entire month of July. “With fewer Sugraones in the market than past years and good demand for Flames we’re looking for the market to settle in that range. Going forward, with all of the new varieties of table grapes filling shorter windows than with the older conventional varieties, we hope to see consistent demand right through fall and into the winter months.”

With the transition fully underway, growers are already looking at what will come next.  

Llano says that Castle Rock is looking forward to the volume of Sweet Celebration this season as it enters its 2^nd year.  With good volume and quality, they should be even more accessible to retailers.

For Anthony Vineyards, Spinelli tells us that they are looking forward to a strong crop of organic grapes to help satisfy a large demand.

With the question of any changes in pricing still up in the air, we’ll continue to keep an eye on the season. Stay tuned to AndNowUKnow for the latest updates.

Anthony Vineyards

Castle Rock Vineyards

Giumarra

MILWAUKEE, WI – Roundy’s, Inc. has announced the closure of its Stevens Point, WI distribution facility just months after it announced its planned departure from the Twin Cities area.

In a mass layoff notice sent to officials in the state of Wisconsin, the company stated that the closure will result in the loss of 196 jobs by September 13th, according to the Milwaukee Journal Sentinel.

Roundy’s says that the closure is in connection with its recent announcement of the divestiture of its Rainbow stores in the Twin Cities area, according to a press release.

In that divestiture, Roundy’s sold 18 Rainbow stores to a group of local grocery retailers, including Supervalu, in a $65 million deal in attempts to fully exit the Minneapolis/St. Paul market. Supervalu’s aggregate purchase price across its multiple purchase agreements is approximately $35 million.  If it cannot find buyers for its remaining 9 stores, the company plans to close them as well.

For more information on this process, check out our previous story by clicking here.

The company will now consolidate its operations to its Oconomowoc, WI and Mazomanie, WI distribution facilities.

The Stevens Point facility will follow a gradual phase-out plan before operations cease entirely by September 30, 2014.

Roundy's

SALINAS, CA - On Friday, July 18th, Tanimura & Antle's mascot, Captain T&A, will be racing against other mascots from a host of other Salinas produce industry leaders in the California Rodeo Salinas Vegetable Race to support the Ag Against Hunger non-profit. Since the 1990's, Ag Against Hunger has been coordinating deliveries of surplus produce from growers to 30 food bank partners locally and throughout the West Coast, and to schools through the More Produce for Schools program.

“Ag Against Hunger is an incredible non-profit organization that without a doubt every produce company can and should contribute to in some way or another,” said Ashley Pipkin, Junior Marketing Project Coordinator with Tanimura & Antle. “In the first year alone 400,000 lbs of produce was distributed.”

Each organization donates an entry fee of $1,000 in order to participate in the mascot race, funds which are then directly donated to Ag Against Hunger.

Supporting Ag Against Hunger is just a part of Tanimura & Antle's larger philosophy about community responsibility and sustainability, according to Pipkin. “We at Tanimura & Antle believe that sustainability means maintaining not only the quality of the land, but improving the quality of life in our community,” she told us.

Tanimura & Antle will also be sponsoring the Special Buckaroos Rodeo which gives children with special needs an opportunity to team up with professional cowboys and cowgirls and get a real rodeo experience over the course of the day.

“They receive hats, t-shirts, bandanas, contestant numbers, an awards bag and trophy at the end of the day. They rope cattle 'dummys,' race the barrel pattern on stick horses, get 'bucked' on a rocking horse and bull, and some even are able to ride a live horse accompanied by one of the professional volunteers,” explained Pipkin.

Tanimura & Antle got their inspiration for Captain T&A from traditional American superheroes. They hoped that he would help them bridge the gap between fresh produce consumption and the athleticism and strength which superheroes stand for.

To learn more about the Tanimura & Antle at the California Rodeo Salinas Vegetable Race you can visit the California Rodeo Salinas' homepage.

Tanimura & Antle

CINCINNATI and BOCA RATON, FL - Kroger is strengthening its online presence with its acquisition of Vitacost.com Inc., an online vitamin retailer. The $280 million purchase is expected to complement Kroger’s strategy to enter new markets, as well as Harris Teeter’s online order and pick up service.

Kroger CEO Rodney McMullen expressed his delight, noting that Vitacost.com’s “core focus on healthy living products is complementary to our fast-growing natural foods business, and we intend to grow Vitacost.com’s strong position in the online nutrition market. At the same time, we will build on Vitacost.com’s e-commerce platform by integrating it with our existing digital offerings to create exciting new levels of personalization and convenience for our customers.”

E-commerce is quickly becoming an area where big box retailers are looking to compete against existing online retailers, such as Amazon and FreshDirect. Wal-Mart especially has been gearing up for greater online presence with plans to expand its workforce in Silicon Valley. For more on that story, click here.

Vitacost.com’s e-commerce platform will enable Kroger to serve customers through ship-to-home orders nationwide, including 16 states that are currently not served by Kroger supermarkets, expanding the company’s reach into new U.S. markets as well as internationally, according to a press release.

According to Wall Street Journal, McMullen stated, “In terms of shipping to home, [Vitacost’s] infrastructure is incredibly strong for that. That’s one of the reasons we are really excited about the merger.”

Jeffrey Horowitz, CEO of Vitacost.com, said, “This transaction represents a significant premium for our shareholders and the company will benefit by leveraging Kroger’s scale and resources to further drive the online healthy living industry to new heights.”

In early afternoon trading, Vitacost.com shares skyrocketed approximately 27% to $7.99, while Kroger shares fell by 0.2% to $49.44. Currently, Kroger is limiting home delivery to shelf-stable groceries, Wall Street Journal reports. McMullen explains that the agreement “accelerates where we are by a few years, much faster than if we went and tried to build it on our own.”

Kroger will finance the transaction with debt. Following the close of the deal sometime in the third quarter, Vitacost.com will operate as a subsidiary of The Kroger Co. and will continue to operate its facilities in Boca Raton, Florida, Lexington, North Carolina, and Las Vegas, Nevada.

Kroger

Vitacost.com

CALIFORNIA, U.S. - With 4th of July right around the corner, the thoughts of most Americans are on barbeques. hot dogs, and burgers, but if industry insiders are right, the lettuce in those burgers won't come cheap. Lettuce prices rose in June to over twice their levels from last year and these higher-than-average prices could continue well into July.

Unusual weather patterns contributed to a lettuce crop this year which many growers are finding disappointing. An unseasonably dry start to the year, coupled with a recent spell of cool nights with temperatures “between 5-8 degrees cooler than their season averages...[has led to] depressed growth rates for our lettuce crops,” explained Mark McBride of Coastline Produce to AndNowUKnow.

Simply put, there is less lettuce available for sale right now than retailers and distributors are accustomed to, and this shrunken market supply has led to some massive price increases.

For example, the USDA is reporting that as of July 1st, 24s film-lined iceberg lettuce grown in California is selling for $20.35-$21.65. Last year this same product was associated with a price point of $8.50-$10.35. Romaine lettuce, also at 24s, is currently being priced at $26.00-$27.00 this July. Last year it was being priced $19.00-$20.00, $7 cheaper.

Industry members which AndNowUKnow reporters have spoken with do not expect these high lettuce prices to go away any time soon. While it is challenging to predict a specific future price point, it seems that the continued weak supply of California lettuce could hold prices at a higher-than-average price point for the next 2-3 weeks if not for the rest of July.

AndNowUKnow will be monitoring this continuing situation closely to bring you any further updates on price changes in lettuce markets.

USDA

USDA

SANTA PAULA, CA – Limoneira Company has closed on the purchase of the packing house property and equipment of Marlin Ranching Company in Yuma, Arizona. 

"We are excited about the acquisition of the Marlin packing assets, which is strategically located near our current farming operations in Yuma. This acquisition will immediately increase our volume and give us increased flexibility in the export markets. Importantly, this also gives us the ability to ship Arizona lemons to China. We expect to benefit from improved operating efficiencies from the new packing house, particularly during the first quarter of our fiscal year," said Alex Teague, Senior Vice President.

Limoneira will use the facilities to wash and pack lemons from the company’s orchards in Arizona as well as citrus that comes from other growers in the region.  The company estimates that it will be able to process about 500,000 to 600,000 cartons of fresh lemons annually at this facility, according to a press release.  This should generate approximately $400,000 to $500,000 per year in operating income.

Harold Edwards, President and Chief Executive Officer, added, "The acquisition of Marlin packing operations is in-line with our long-term goal to expand our agribusiness. Along with the expansion of our primary packing facilities in Santa Paula, which is on track to be completed next fiscal year, this acquisition will significantly increase our packing capacity. In addition, we continue to evaluate opportunities to expand our total agribusiness acreage through strategic acquisitions."

The total purchase price was $1.4 million in cash and stock plus potential earn-out consideration of up to $400,000 in cash.

Limoneira 

IDAHO FALLS, ID – Kingston Cross Dock & Cold Storage (KCD) has hired industry veteran Brian Osborne as its new Warehouse & Operations Manager.

“Kingston’s strong reputation in the produce and storage industries for both product quality and customer service made me immediately interested in the opportunity.  However, it was their good people and clear vision for growth that solidified my decision to come aboard,” Osborne said.  “I am excited to join the team and utilize my industry knowledge and relationships to help further expansion plans.  I am very excited for next season.”

Brian has over 30 years of experience in cold storage, operations and logistics.  His focus will be on daily operations and growing the level of customer service offered to KCD’s growing customer list, according to a press release.

Dennis Carroll, KCD General Manager, said, “Brian has a broad wealth of knowledge as it relates to operations, cold storage and the industry in general.  With the growth we have experienced at Kingston Cross Dock this year, Brian joining the team is a perfect fit to ensure our operations and general customer service continues to improve.”  He added, “Brian comes to Kingston with an excellent reputation in the industry and a strong track record of management skills and leadership abilities.  His experience and network to major customers compliments our continued growth plans.”

Prior to Kingston, Brian held senior-level management positions at other major produce firms like Southern Specialties and Carb Americas.

Congratulations, Brian!

Kingston Cross Dock & Cold Storage

CASTROVILLE, CA – Arti the Artichoke, Ocean Mist Farms’ mascot, won the Fan Favorite Contest against other Salinas Valley company mascots in a social media contest from the California Rodeo Salinas.

“We are thrilled to see Arti voted as the fan’s favorite; we know his fans are passionate about the California State vegetable he represents in his friendly way,” said Kori Tuggle, Director of Marketing and Business Development. “This is a great way to extend our company’s 90^th anniversary celebration as we consider Arti part of the Ocean Mist family.”

The contest was held on the California Rodeo Salinas Facebook page and invited fans to vote for their favorite produce mascot by leaving comments in a photo album.  The contest ran from June 16-30, according to a press release.

Arti won with 56% of the total votes and was declared the winner on July 1 at a special trophy presentation at the company’s headquarters in Castroville, CA.  Tuggle credits Ocean Mist Farms’ employees, Artichoke Club members and Arti’s Facebook page fans for the win.

Arti will make his next appearance at the California Rodeo Salinas on July 18.  Congratulations on the win!

Ocean Mist Farms

IRVINE, CA – California avocados are now available at retail locations with new California brand labels.

The California Avocado Commission’s (CAC) labeling initiative is being backed by a significant level of marketing support to ensure that consumers know to look for them.  The marketing initiatives include print, radio and online, including mobile, as well as social media, according to a press release.

CAC President Tom Bellamore said, “Our goal is to have California avocados with a prominent label designating that point of origin in an artful way that mirrors the messaging CAC presents to consumers and retailers in its marketing campaign.”

The idea to develop a connection between CAC’s consumer advertising campaign and the California brand at point of sale is a concept the California Avocado Commission has supported for more than two decades, according to a press release. 

Bellamore continued to explain that even though some packers use labels that recognize California, it is often in fine print and most consumers pass right over it.  “We needed to make ‘California’ more prominent and graphically compatible with the designs we use in our marketing campaign.  Convincing packers to make a change was not without difficulty.  For a variety of legitimate business reasons, many avocado packers had previously not made California branding labeling a priority,” said Bellamore.

The Commission has conducted consumer testing to persuade packers to embrace CAC’s label initiative.  “We know based on research that shoppers already prefer premium California-grown avocados,” Bellamore said, “so it was no real surprise that the consumer response was very positive when ‘California’ was clearly visible on labeled fruit.”

CAC hoped to convince one or two packers to launch a pilot program for 2014, but after several packers agreed to try, the majority came aboard, according to a press release.  Currently, 10 of the California avocado industry’s 13 largest packers are using or have plans to use California brand labels on the fruit by the start of the 2015 season.

There are currently several sticker options that packers are working with.

California Avocado Commission 

PHILADELPHIA, PA - The wholesale produce business John Vena, Inc has announced the hiring of James Collins as its new Packing Room Supervisor. In his role in this newly created position, Collins will oversee all Packing Room operations, ensuring that John Vena meets the needs of its trading partners and growing customer base.

“We are very happy to have James join our team. This part of our business is growing rapidly and he has the skills we need to properly guide our production team,” said John Vena, President. “James has a bachelor’s degree in Networking & Communications Management as well as experience in production processes. James has spent the majority of his career working in operations, which has allowed him to develop his skills in process technology and lean manufacturing."

Some of this growth has come in the Philadelphia Wholesale Produce Market, where John Vena has notably increased its presence. According to a press release, John Vena has recently needed to build new packing room units to meet the growing demands of its customers.

“We have taken unit F6 and converted it to serve as our packing room. We outgrew our current units, so this will really allow us to work more efficiently,” said Vena.

Congratulations on the new position James!

John Vena

Philadelphia Wholesale Produce Market