Jon Vessey, fourth generation grower and 43-year president of Holtville, California-based Vessey & Co., has passed away peacefully at the age of 70.

“You go to my dad and he’s going to tell you the truth; he’s going to be honest and do the best job he can day in and day out,” said son Jack Vessey, according to Western Growers. “Anybody knows when they shake my dad’s hand, and he says ‘yes’ to it, that it’s going to get done and you don’t have to worry about it. My father taught me your word and your honor is key.”

Under Jon’s leadership, Vessey and Company expanded its vegetable categories into 40 different conventional items and 27 different organic items over 10,000 acres in the Imperial Valley. Jon’s son, Jack, will continue the family business.

Jon has served in a number of industry groups throughout his entire career, including the Produce Marketing Association, California Farm Bureau Federation, and the Western Growers Association. He also served as President of the Imperial Valley Vegetable Growers Association and was on the board of directors of Buy California.

Tom Nassif, Western Growers President and CEO and a close friend for the past 45 years, said Jon was an ardent industry supporter who never shied away from discussing important and controversial industry matters, according to the Imperial Valley Press.

“Jon always had the courage to stand up and explain what was happening to our industry and what needed to be done regardless of the cost to him personally,” said Nassif.

He will be remembered not only as a visionary and innovator in the fresh produce industry, but also as someone who embodied the highest standards of integrity and character.

He is survived by his former spouse Pam, his current spouse Darla, his children Jack Vessey, Cameron Vessey, Heather Vessey Garcia, Alexis Vessey, and six grandchildren Brody, Lane, Griffin, Blaze, Hazel, and Fiona.

Memorial services will be held at 10:00 A.M. on June 21 at the Barbara Worth Country Club in Holtville.

AndNowUKnow would like to extend our deepest condolences to Jon’s family and friends.

SAN BRUNO, CA - Fernando Madeira, who is currently President and CEO of Latin America at Walmart.com, will be taking on the newly created role leading Walmart.com in the U.S., Latin America and any other growth areas.

Current Walmart.com U.S. CEO and President Joel Anderson will be leaving at the end of the month to take the job as President of discount-store chain Five Below Inc., according to the Associated Press. June 20th will be his last day at Walmart.com.

Madeira has been in his current role for three years. In that time, Brazil’s business has grown twice as fast as the market, while increasing traffic four-fold, according to a memo sent to Wal-Mart Stores Inc. employees.

Walmart.com’s online sales rose more than 30% to $10 billion for the year ended January 31st.  It is a small part of the company’s total sales, but Wal-Mart is pushing to innovate in the e-commerce area, according to the Associated Press. This rapid growth actually beat Amazon's sales growth for the year ended December 31, which was reported at 20%. This is the first time in a decade Wal-Mart's online sales growth beat Amazon's. Check out our previous story for more information.

Click here to read: Wal-Mart Overtakes Amazon in Web Sales Growth in 2013

“Wal-Mart can bring together our stores with new digital commerce capabilities to help customers save money, save time and have access to what they want and need,” Wal-Mart’s new CEO Doug McMillon said to shareholders at the annual shareholders meeting. “The opportunity is enormous.”

Wal-Mart has more than tripled the number of items it sells online to more than 7 million from 2 million 18 months ago. It is also testing online grocery delivery and other possible services.

Congratulations, Fernando!

Wal-Mart

YAKIMA, WA - FirstFruits Marketing of Washington is welcoming 25 year produce industry veteran Tim Corkill to the company as its new Marketing Manager. He will be responsible for heading up marketing efforts for the western region, according to a press release.

“We are very excited to have Tim join our team; his years of experience in the produce industry are a valuable asset and he brings a great understanding of retail produce sales and marketing,” said Keith Matthews, FirstFruits CEO.

Corkill’s venture into produce began at Vons Grocery Company where he advanced to Produce Manager, overseeing product merchandising and category management during his seven-year tenure. He then continued into marketing and spent the last 18 years in marketing management roles at Fresh Western-River Ranch, Inc., California Table Grape Commission, and Pear Bureau Northwest.

“I am extremely excited to work for FirstFruits Marketing,” said Corkill. “Not only is it a quality fruit company well-positioned in the industry, but I admire them for their philosophy of giving back and am excited to participate in and impact such causes.”

Corkill lives in San Diego, California with his wife and two children.

Congratulations on joining FirstFruits, Tim!

FirstFruits Marketing of Washington 

WASHINGTON, D.C. - The USDA has cited Arkansas-based company Allens Inc. for failure to pay for produce.

The company allegedly failed to pay 40 produce sellers $9,759,843 for 2,312 lots of produce from October 2013 to January 2014. Allens Inc. will have an opportunity to request a hearing. If the USDA finds that the company committed repeated and flagrant violations, it would be barred form the produce industry for two years, according to a press release.

The company’s principals could not be employed by or affiliated with any PACA licensee for one year and then only with the posting of a USDA-approved surety bond.

In the past three years, USDA resolved approximately 4,600 claims filed under PACA involving more than $87 million. Individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.

Agricultural Marketing Service

            Mexican officials have blocked the agreement that allows the export and import of U.S. potatoes just weeks after the country opened its market on May 19th. Mark Szymanski, Spokesman for the National Potato Council, confirmed the news this morning.

            The Mexico Potato Growers Association, otherwise known as Conpapa, has filed a lawsuit against Mexico’s Ministry of Agriculture to put a halt to all exports and imports of U.S. potatoes into the country, said Szymanski.

            Although there’s little information on claims being made and when the filing will be taken up by courts, it is known that the U.S. Animal and Plant Health Inspection Service (APHIS) has stopped issuing phytosanitary approvals until border points are re-opened.

            “Currently, we’re working well with APHIS and the USDA on understanding the situation,” Szymanski tells AndNowUKnow. “We always knew there would be bumps along the road with new markets.”

            It is still unknown how long the ban is expected to last.

            Stay tuned to AndNowUKnow as more information becomes available.

This year, Mastronardi Produce/SUNSET® is celebrating its 60th anniversary. Back in the 40s, Grandpa Mastronardi saw a need for greenhouse produce and pioneered the North American greenhouse industry. In 1954, the Mastronardi family founded Mastronardi Produce Ltd, an exclusive greenhouse growing company. From then on, Mastronardi Produce has been known as leaders in the industry. In 1995, SUNSET® pushed the boundaries of flavor by introducing a European tomato. For the first time in history, a tomato was called by name - Campari®. Today, Campari® is among many SUNSET® brands that are nationally renowned for their distinct flavor, versatility, and exceptional quality. SUNSET® has become known for their flavorful, innovative ideas and bringing new items to market successfully. CEO Paul Mastronardi tells us, “Our plan is to keep growing with our retail partners and flavor connoisseurs for many more generations. We can’t wait to see what the future holds.” Happy Anniversary!

Hy-Vee opened its first Market Café in South Dakota as part of a new concept to  add full-service restaurants in many of its stores.

The café opened at the end of May in the Watertown, South Dakota Hy-Vee store.  Its menu includes appetizers, salads, burgers, sandwiches and flatbreads.  It will also have a bar that serves beer and wine, according to news publication Argus Leader.
Store manager Shane Conger said that customer reaction has been “very, very positive.”  Customers can either order in front of a counter and be seated or be served by wait staff.  The store added 45 employees for the café.
At least  five out of the seven Sioux Falls stores will receive either a Market Café or the larger Market Grille concept, which includes a large assortment of dinner entrees, according to Hy-Vee’s Assistant Vice President of Operations Tim Stupka.
“It’s absolutely amazing.  I don’t know that we’ve ever had a food complaint,” Stupka said.  “They’re fantastic.”

Hy-Vee plans to add up to 75 restaurant locations by 2016, according to the company’s website.

Hy-Vee
Hy-Vee Market Grille

Two PACA violators in California and Florida have been restricted by the USDA from operating in the produce industry, according to a press release.

Calgreen Produce Corp., a Los Angeles, California-based company, has failed to pay a $7,924 award in favor of a California seller. Feras R. Mohammad was listed as the officer director, and major stockholder of the business.

Pangea Produce Distributors Inc., a Miami, Florida-based company, has failed to pay a $24,179 award in favor of a Tennessee seller. Rachel M. Badilla was listed as the officer, director, and major stockholder of the business.

In the past three years, the USDA resolved approximately 4,600 claims under the PACA involving more than $87 million. Individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed or affiliated with any PACA licensee without the approval of the USDA. The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA.

Agricultural Marketing Service

Bob Mariano, Founder of Mariano’s Fresh Market and CEO of its parent company, Roundy’s, is looking for bigger opportunities outside of Illinois to expand his new, namesake grocery chain. But will the acceleration in growth rate be enough to help out the struggling Roundy’s?

Roundy’s net loss for the first quarter of 2014 was $4.5 million, while same-store sales fell 5.3%. Currently, Roundy’s shares are around $5, close to its 52-week low and below the $7 per share at which the company priced a stock offering in February. Meanwhile, Mariano’s has been growing fast – and continues to grow fast – with 13 Chicago stores in December, 11 stores from former Dominick’s conversions, and 5 new stores being built from the ground up for a total of 29 by year-end.  

“Opening Mariano’s in other markets is a real potential opportunity for us,” said Mariano, according to Crain’s Chicago Business. “We haven’t done the work yet to determine which market… but we clearly feel that Mariano’s can travel.”

Aside from the stock offering, Roundy’s has also suspended its dividend and refinanced debt to finance Mariano’s expansion, Crain’s Chicago Business reports. It also agreed to sell 18 Rainbow stores in Minneapolis to Supervalu and other local grocers for $65 million. Mariano said the transaction would allow the company to “better focus strategically” on growing the Mariano’s banner in the Chicago market and strengthen the business in core Wisconsin markets. The move had some analysts speculating that Mariano may spinoff Roundy’s.

“Given the relative disparity of the valuation between the Mariano’s chain and the rest of Roundy’s, it would make sense to spin it off at the right time,” said Andrew Wolf, analyst at BB&T Capital Markets. “If you read between the lines, that’s pretty much what they’ve been saying.”

Because Roundy’s doesn’t report numbers for its store brands, it’s unknown how profitable Mariano’s is; although, Mariano suggests that “mature” locations see about $1 million in sales per week, about twice as much as Roundy’s-owned stores in other markets.

To put things in perspective, Mariano’s stores require about $5.5 million of initial investment. Compare that to $10.5 million for a Whole Foods store. Return on invested capital within four years is 35 to 40% for a Mariano’s store, while Whole Foods is 31%, according to Crain’s Chicago Business. Still, Roundy’s reportedly has $742 million of long-term debt, which David Livingston, a Milwaukee-based grocery consultant, says is a critical weak spot.

“Whole Foods and other competitors feel that Mariano’s is vulnerable simply because at some point they can’t operate their stores at a very high level if they continue to remain in that much debt,” said Livingston. 

 Mariano remains confident that the company can succeed by staying on top of customer demand and trends.

“At the very least, you have to be on-trend, and to be really great you have to be at the forefront,” said Mariano.

What’s next for Roundy’s? Will Mariano spinoff the company, or will he keep pushing ahead? Stay tuned to AndNowUKnow as we follow any further developments.

Roundy’s

Mann Packing launched new Family Favorites™ packages.  It redesigned its full line of fresh vegetable packaging to better represent the company’s third generation of family farmers and to be more consumer focused.   

“We tested several designs in focus groups and the visuals with the strongest response included all the attributes of Mann Packing: local farmers, family, generations, natural and authentic,”  Director of Marketing and Innovation Kim St George said. Mann’s is celebrating its 75th anniversary this year as a grower/shipper/processor.

The redesigned packages have been  developed over the last nine months,  according to a press release.  They feature a new Mann’s Family Favorites logo with a natural color palette and a QR Code that takes you to Mann’s website for recipes and usage ideas.  Select packages will come with a photo recipe as well.

“The new upscale package design also helps differentiate Mann Packing’s full line of fresh-cut vegetables from the competition with its distinct imagery, product photography and colors, and will stand out on the shelf at the store level,” St George said. “When you put the entire line together, it carries a strong message about where the category is headed as a destination for shoppers.”

The company will showcase the new packing at United Fresh  as part of the Grower Shipper Pavilion followed by a full rollout nationwide in the US and in Canada.

Mann Packing