SANTA MARIA, CA - Pivotal partnerships are popping up left and right as more companies unveil strategic plays to bolster their operations. Landec Corporation, which operates Curation Foods, has recently announced it has entered into a new transportation management, warehousing, and transportation services agreement with Castellini Group of Companies.

“Project SWIFT continues to guide our business simplification process as we work to streamline our business, drive profitability, and enhance stockholder value,” said Dr. Albert Bolles, Landec’s Chief Executive Officer. “Through our review of all facets of Curation Foods’ operations, it was clear that we would benefit from engaging with a strategic logistics partner to increase our distribution reach into markets that we do not currently serve, improve efficiency by increased distribution frequency in existing markets and reduce our overall operating costs, thereby bringing greater value to our stockholders. To that end, we are excited to announce a strategic partnership with Castellini—a leading logistics management company—to help us seek to achieve these goals.”

As a result of the new agreement, Castellini will oversee the management, contracting, and pricing negotiations with freight carriers and perform dispatch services and freight carrier performance management for Curation Foods, which is expected to reduce the company’s logistics costs, as explained in a press release.

Through this agreement, Landec will also seek to fortify its logistics network and streamline the Curation Foods business by selling its Rock Hill, South Carolina, distribution facility; transferring its Rock Tavern, New York, facility to Castellini; and closing its Vero Beach, Florida, facility.

Landec expects to record approximately $3 million of restructuring costs in the fourth quarter of fiscal 2021, including approximately $2 million in non-cash expenses. The cash impact of these costs is expected to be offset by net proceeds of around $1 million associated with the sale of the company’s facility in Rock Hill.

“We are excited to partner with Castellini, one of the largest fresh produce distributors in the United States,” Tim Burgess, Curation Foods’ Senior Vice President, Supply Chain, stated. “We believe that their logistics expertise, built over 125 years of operations, will provide Curation Foods with increased service levels, including almost daily deliveries in many markets, as well as deliveries into new markets that aren’t currently served by our existing distribution network. This results in fresher produce and salads for our existing customers, longer shelf life for our customers, and supports our mission of expanding access to our fresh plant-based products.”

As a result of its new agreement with Castellini, Landec expects to achieve annual cost synergies of $1 million in logistics operating expenses beginning in fiscal year 2022, the press release noted, and will continue to pursue incremental revenue opportunities for Curation Foods by expanding into new markets.

As more powerful partnerships such as this one are announced within the fresh produce industry, keep an eye out for ANUK, as we promise to report.

Castellini Curation Foods