PMG Retailer Insight

Walmart teams up with Denali to tackle food waste at retail

Mon, 30 Oct 2023 20:13:05 GMT

What happens to less-than-perfect, spoiled or misshapen fresh produce that doesn’t make it to shelf?

Too often, this edible produce is chucked into a produce department trash can with other waste — ultimately ending its life cycle in a landfill. However, two companies have partnered to deliver an alternative outcome.

Full-service recycler Denali and Walmart have committed to providing food waste recycling at Walmart’s 4,700 stores throughout the U.S. The companies aim to divert millions of pounds of food waste from landfills and toward uses such as creating compost, feeding animals and generating renewable energy.

“We are excited to continue this journey with the world’s largest retailer and in particular to explore new technologies that will greatly increase the amount of waste Walmart and Denali can divert from landfills,” Denali CEO Todd Mathes told The Packer. “Through this, we’re showing what is possible for the entire grocery industry.”

He said now is an exciting time when it comes to diverting food waste from landfills in the food industry.

“Technology, policy changes and the capabilities of businesses like Denali are converging to make recycling of produce waste and byproducts more feasible and economical than ever before,” Mathes said. “We’re thrilled to be on the cutting edge of this transition to more sustainable food system with so many grocery and produce partners.”

Denali is working with some of the largest food retailers, such as Walmart, and cities across the nation, he said.

“Recycling food waste can be both economical and normal across the U.S.,” Mathes said. “Food has value, even when it’s no longer edible, and putting this resource to good use is an opportunity for our economy.”

Innovation unlocking opportunities

For retailers and fresh produce purveyors seeking sustainability gains, Mathes said that recycling fresh produce that doesn’t make it to the customer’s cart is the perfect place to begin.

“If we want a more circular economy, organic waste recycling is a great way to start,” he said. “Our company is what the circular economy looks like in action, turning hundreds of thousands of tons of food waste — and other organic waste streams — into millions of gallons of biodiesel, thousands of tons of animal feed, sustainable substitutes for chemical fertilizers, and millions of pounds of compost.”

This work doesn’t happen in a silo, but through partnerships such as the one with Denali and Walmart.

“We’re doing this in partnership with grocers, retailers, major cities, sports stadiums, convention centers, hotels, and some of the largest food manufacturers in the U.S.,” Mathes said.

Scaling food waste recycling

The devil is in the details when it comes to scaling these partnerships, however. Three key challenges in delivering food waste recycling at scale include transportation logistics, material processing and data, Mathes says.

“We’re addressing the first with cutting-edge routing systems and the largest organics collection fleet of its kind. The second we are tackling with the buildout of a de-packaging machine network so we can ensure a clean stream of material for our downstream customers,” Mathes said. “And the third we’re working on with new information technology systems and real-time reporting. It adds up to an efficient and cost-effective system where we can make the most out of many types or organic materials.”

Implementing improvements and adopting efficiencies at scale is incremental, says Justin McCurnin, Denali’s executive vice president of sustainability and marketing.

Related: What retail produce buyers, brokers, shippers can do to reduce food waste

“A strategy we have been pursuing is to add de-packaging capabilities at our sites so that we are more efficiently able to separate packaging from organic contents,” McCurnin told The Packer. “For retailers, this means we are able to recycle a greater variety of materials. On top of produce, we can sometimes divert from landfills items such as meat, liquids, dairy products and packaged goods.”

Tackling food waste in fresh produce

Fresh produce is well suited to material recycling, according to leaders at Denali.

“The fresh produce industry should know that its byproducts and unsold inventory is valuable, and recycling these material streams is good for business,” Mathes said.

McCurnin agrees.

“Produce is a very large fraction of the unsold food at grocery stores,” he said. “The national nonprofit ReFED reports that produce makes up the largest portion of surplus food from retailers — 32.3% in 2021 — which is consistent with what we see on our collection routes.”

Encouraged by strong Q2, SpartanNash tees up new strategy

Mon, 21 Aug 2023 19:08:15 GMT

Grand Rapids, Mich.-based food solutions company SpartanNash is poised to make good on its long-term plan to reposition its go-to-market functions, with heady expectations of saving approximately $20 million in savings by the end of 2023.

According to a news release, the strategy has been made possible through changes across the entire business, including supply chain, merchandising and marketing innovation initiatives.

SpartanNash reported strong financial results in the second quarter of 2023. The multichannel food company, which has complementary business segments in both food wholesale and grocery retail, reported second-quarter net sales of $2.31 billion, an increase of 1.7% compared with $2.27 billion in 2022’s second quarter, according to the release.

“Our team delivered solid results in the first half of 2023, leveraging transformational initiatives for growth and value. We are encouraged by the success to date, but also believe there is a long runway of benefits that will help us achieve our long-term strategic plan,” SpartanNash President and CEO Tony Sarsam said in the release.

Related news: SpartanNash to gather indie grocers at annual Food Solutions Expo

With progress underway, SpartanNash said in the release that it is repositioning its go-to-market strategy, centered on customers and implementing its refreshed go-to-market plan in the third quarter.

“We are now entering the next phase of our transformation, bolstering our go-to-market strategy and building on our ‘signature strength’ of being the most customer focused, innovative food solutions company,” Sarsam said. “All of the elements of our long-term strategic plan differentiate SpartanNash as a growth-oriented organization, which further positions us to drive profitability and increase shareholder value.”

SpartanNash Q2 earning - by the numbers

According to the release, other notable second quarter 2023 earning statistics include:

Retail comparable sales increased 3.9%, compared with the second quarter of 2022.
Net earnings totaled $19.5 million, compared with $5.1 million in the second quarter of 2022.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was reported as $66.1 million, compared with $61.8 million in the second quarter of 2022.
Cash generated from operating activities was $49.7 million during the first half of 2023, compared to $28.5 million in the first half of the prior year.
SpartanNash returned $33.6 million to shareholders during the first half of 2023 through $18.5 million in share repurchases and $15.1 million in dividends.

Wholesale and retail performance

Net sales for wholesale increased $31.9 million, or 2%, to $1.63 billion from $1.60 billion in the second quarter of 2022. The growth in net sales was due primarily to the inflationary impact on pricing in the quarter, partially offset by marketplace demand changes from a certain national account, the release said.

SpartanNash’s wholesale supply chain network includes independent and chain grocers, national retail brands, e-commerce platforms and U.S. military commissaries and exchanges. The company also distributes products throughout the grocery store, according to the release.

Additionally, second-quarter net sales for retail increased $6.6 million, or 1%, to $679 million from $672.4 million in the second quarter of 2022. Retail comparable store sales grew 3.9% for the quarter, due primarily to the inflationary impact on pricing, according to the release. Lower fuel prices in the quarter reduced reported net sales by 2%. Retail sales include the scaled regional retail segment operated by SpartanNash with 144 brick-and-mortar grocery stores, in addition to pharmacies and fuel centers, the release said.

Whole Foods Market’s impact report underscores vision to be a 'force for good'

Mon, 31 Jul 2023 12:14:21 GMT

Whole Foods Market has released its annual impact report, shining a light on its efforts to raise the bar in the global food system.

The comprehensive 61-page report covers a lot of ground from employee well-being to regenerative agriculture to food donations. The 2022 impact overview encompasses the key initiatives that the Natural and organic foods retailer has implemented through its 530-plus stores, supply chain and more than 100,000 employees across the U.S., United Kingdom and Canada.

Top takeaways from the 2022 report include the company’s efforts to combat food waste, how it’s reducing its carbon footprint, responsible sourcing programs and initiatives that support employee growth.

“Whole Foods Market has a rich legacy of building a more sustainable food system, from our unparalleled quality standards to our responsible sourcing and environmental stewardship,” Caitlin Leibert, vice president of sustainability for Whole Foods Market, said in a news release. “Building on the progress we made this past year, we look forward to what we will accomplish in the years ahead as we continue to find new and innovative ways to further our mission.”

Improving the way food is grown

While the report is not focused on produce specifically, initiatives to champion and promote sustainable, organic and regenerative agriculture is visible throughout.

“I’ve always really been driven by the desire to scale organic, sustainable and regenerative agriculture,” Karen Christensen, senior vice president of merchandising for perishables, said in a recent Reuters video interview. “This is not a new movement, but it’s really got new legs in the past few years.”

The connectivity between regenerative and agriculture as a method to sequester carbon and improve climate, is widely recognized today, she continued.

“I’m really excited about that being a transformational moment in food in the U.S. and around the world,” Christensen said.

While Christensen oversees all perishables at Whole Foods Market — which includes produce, meat and seafood — her career started in produce.

“I came [to Whole Foods Market] because I was working for an all-organic produce wholesaler in Northern California, which was an amazing entry point into the industry; I really enjoyed working there,” she said in the video interview. “And when Whole Foods Market came to California, it was really eye-opening to me, the potential to scale organic agriculture.

“That’s what got me interested, that’s what got me in the door,” Christensen continued. “And somewhat to my surprise, I’m here 25 years later, so it’s been consistently interesting.”

Notable impact report highlights

“Our impact report marks another exciting milestone as we demonstrate the progress we’ve made to drive forward our purpose to nourish people and the planet,” Whole Foods Market CEO Jason Buechel said in the release. “As we grow, we’re continuing to raise the bar on our commitment to sustainability and finding win-win solutions with all our partners — from our suppliers to the environment to the communities we serve.”

According to the release, the top statistics in 2022 included:

Kept more than 72% of waste produced at stores and facilities out of landfills.
Maintained recycling programs at nearly 96% of stores.
Supported organic diversion programs, such as composting, at nearly 450 stores.
Donated more than 30 million meals to nearly 1,000 unique food rescue and redistribution organizations.
Sourced 250 million pounds of fair trade ingredients.
Onboarded more than 2,300 new organic products, now offering more than 37,000 active organic products across its stores.
Awarded nearly $1.7 million to local suppliers last year through its Local Producer Loan Program and inducted nine new participants into its Local and Emerging Accelerator Program cohort.
Funded 33,555 microloans by the Whole Planet Foundation.
Awarded 57 grants to community-led organizations across 39 cities by Whole Cities Foundation.
Donated 506 gardens and 142 salad bars by Whole Kids Foundation.

To learn more about Whole Foods Market’s impact, check out the 2022 impact report .

3 Things About Per Bank, Loblaw's CEO & President

Tue, 18 Apr 2023 19:39:20 GMT

During an investor relations call on April 18, Canada’s Loblaw Cos. Ltd., shared details surrounding its incoming CEO and President Per Bank.

Who is Per Bank?

Here are three things you should know about the exec Loblaws says is poised to take the helm in early 2024:

Bank is a 30-year career retailer with deep expertise in retail operations and supply chain, he is the outgoing CEO of Salling Group A/S , the largest retailer in Denmark, with 1,700 multi-banner supermarkets across three countries. The retail group serves 11 million customers a week.
He has “extensive experience working for a controlling family and understands what that relationship needs to be in order for a partnership to be successful,” said Galen G. Weston, chairman of the Loblaw board of directors and CEO of parent company George Weston Ltd., who added that Bank has also led an organization that has an “outsized cultural and financial place inside his country.” For example, he sits on the board of the Bank of Denmark, where he provides a unique perspective on consumer behavior. “This is the type of experience that goes above and beyond … simply running retail stores,” Weston said.
He brings a sense of “controlled impatience” to running a business, Weston said. “And that type of impatience is really essential culturally, when you’re running a retail business — especially a grocery business where you’re making decisions every single week, and you need to have the decisions moving at the speed of the trading.”

Bank named as new president and CEO after global talent search

Bank will be the president and CEO of Loblaw Cos. Ltd., a Canadian supermarket chain and distributor headquartered in Brampton, Ontario. Bank will join the company by the first quarter of 2024.

This appointment is the result of a global talent search initiated in August, after Robert Sawyer announced his retirement as Loblaws’ chief operating officer at the end of 2023, according to a news release.

“Over the past two years, we have strengthened the foundations of the company. Our management team is exceptional, and our 220,000 colleagues continue to deliver for our customers every day,” said Weston. “In Per, we have found a world-class retail executive to help us build from that position of leadership and strength, and to continue on that journey.”

Bank is a 30-year career retailer with deep expertise in retail operations and supply chain. He is the outgoing CEO of Salling Group A/S, the largest retailer in Denmark, with 1,700 multibanner supermarkets across three countries, supported by e-commerce, loyalty and private-brand programs, and having one of Denmark’s largest private-sector workforces, according to the release.

When Bank takes his new role in 2024, he will be responsible for Loblaw’s day-to-day operations, and he will report to Loblaw’s board of directors. Weston will remain chairman of the Loblaw board of directors, as well as chairman of the board of directors and CEO of George Weston Ltd. — where he will play an active role setting the strategy for the group, according to the release.

Richard Dufresne will continue as Loblaw’s chief financial officer and president and chief financial officer of George Weston Ltd. Robert Sawyer will remain as chief operating officer until the end of 2023, helping to deliver Loblaw’s 2023 plan while setting up a successful transition for Bank.

“Coming from Salling, [Per] arrives with a clear understanding of what it means to lead a nation’s largest retail network and team, and a family company established more than a century ago to help Canadians live life well,” Weston said in the release.

Sawyer, Dufresne and Weston have worked side by side with their management teams to improve Loblaw’s performance, he said.

Bank said he’s excited to build on Loblaw’s ongoing success.

“Loblaw is admired worldwide for its sound values, long history of innovation and the strong execution that has made the company what it is today,” Bank said in the release.”

Loblaw has more than 1,050 grocery stores that span the value spectrum from discount to specialty; full-service pharmacies at nearly 1,400 Shoppers Drug Mart and Pharmaprix locations and almost 500 Loblaw locations; PC Financial services; affordable Joe Fresh fashion and family apparel; and four of Canada’s major consumer brands in Life Brand, Farmer’s Market, no name and President’s Choice.

Smallhold expands into Sprouts Farmers Markets across western states

Thu, 30 Mar 2023 14:28:38 GMT

If you’ve noticed a recent influx in exotic mushrooms — think lion’s mane and king oyster fungi — enlivening produce displays with the standard white button mushrooms, you’re not alone.

Specialty mushroom grower Smallhold recently announced that its mushrooms will hit shelves at 192 Sprouts Farmers Market locations in California, Arizona and Nevada.

Related news: What’s so magical about (edible, culinary) mushrooms?

Based in Brooklyn, N.Y., Smallhold operates indoor mushroom farms in New York City, Los Angeles and Austin, Texas. The new Sprouts partnership will increase availability of Smallhold’s fresh mushrooms on the West Coast significantly, with Sprouts receiving mushrooms grown at Smallhold’s California mushroom farm, according to a news release.

“We’re excited to partner with Smallhold, a company who shares in our mission of providing people unique, fresh and sustainable products,” Sydney Manzano, Sprouts assistant produce manager said in the release. “Smallhold’s premium specialty mushrooms, including lion’s mane and blue oyster, will be proudly available in our stores.”

With expansion into Sprouts, Smallhold mushrooms will be carried in over 650 retailers and restaurants across the U.S. Other retailers carrying Smallhold mushrooms include Whole Foods Market, Erewhon, Pavilions, Lassen’s, Imperfect Foods and Ralphs.

Breaking out of the typical mushroom offerings — often limited to button, cremini and portabellas — Smallhold provides a variety of the less-common specialty mushrooms for consumers.

“Nowadays, shoppers are demanding more variety and choice in the produce aisle, and Sprouts, a trusted grocer for anyone looking for high quality, top shelf produce, recognizes this,” Andrew Carter, Smallhold CEO and co-founder, said in the release.

Cultivating mushrooms sustainably

Smallhold’s 34,000-square-foot farm in Vernon, Calif., just outside of Los Angeles, began delivering locally grown, certified-organic specialty mushrooms in May 2022. Its California operations, alongside farms in Brooklyn and Austin, furthers the 6-year-old company’s reach across the country.

Smallhold uses technology to optimize sustainable growing practices; the mushrooms grow in technologically advanced chambers designed to optimize yield, taste and color, according to the release.

The company’s centralized sensor system can adjust the chambers’ atmospheric parameters, controlling the inputs while accounting for changes in climate. Mushrooms are grown on waste byproduct medium — primarily sawdust from the timber industry — and packed into compostable cardboard.

“People care about low impact, sustainably grown food that will help our society contend with the impacts of traditional agriculture, food waste, and climate change. Smallhold and Sprouts are answering the call,” Carter said in the release.

Goals that go beyond 'greenwishing'

Wed, 22 Mar 2023 16:36:16 GMT

Along with the annual migration of golden-cheeked warblers, every year in early March tens of thousands of musicians, entrepreneurs, film crews and tech startups descend on sunny Austin, Texas, for the annual South by Southwest Conference.

Also known as SXSW, the festival hosts a dizzying array of concerts, premiers and art activations that take place in every corner of Austin. Also layered onto the festival is an interactive conference that lasts over a week and is punctuated by serious discussions about climate, tech, culture, art, startups and, yes, even food.

From March 10-12, food was a major focus at the 2023 SXSW Conference. Along with familiar celebrities, activists and luminaries, fresh produce innovators, ag advocates and foodtech leaders gathered to share their perspective on the state of the industry, trends, challenges and who’s doing what.

One such discussion was a provocative two-part panel called “Businesses Doing More Than ‘Greenwishing.’” The conversation included leaders from Driscoll’s, The Kroger Co., Google, Bonterra and others who, over the course of two hours, shared many of the strategies and approaches they have used to tackle lofty sustainability and environmental, social and governance (ESG) goals.

These leaders detailed how they were putting action behind their words, setting milestones, making decisions and making good on well-meaning promises, plans and marketing claims within their organizations.

The panel was hosted by a nonprofit think tank called Foodtank during a SXSW-sponsored summit on Sunday, March 12, at Huston-Tillotson University in East Austin. The discussion wasted no time in diving headfirst into challenges on the minds of many entrepreneurs and food businesses in the audience.

Greenwashing versus greenwishing

“What is greenwishing?” asked Natalie Byrne, founder of impact strategy firm, Blankspace. “We all know what greenwashing is; it’s when you see something, like a marketing campaign, that isn’t tied to real impacts.”

Greenwashing, according to Byrne, is a strategy meant to mislead — tugging at heartstrings without real action behind it. On the other hand, greenwishing is when companies set audacious goals in the distant future with no clear plan to achieve them or a lack of buy-in to accomplish these goals. Both strategies mislead. The difference is that greenwishing seeks to achieve things that are unlikely, for many reasons, to become reality.

“How I see it is a company puts a stake in the ground and says, ‘I want to have this huge goal completed by 2050,’” Byrne said. “In the time it takes to move the company — like a cruise ship — towards that goal, they face challenges.”

Often when facing these challenges, continued Byrne, some companies receive criticism that, in many instances, derails sustainability goals.

“There’s a difference between constructive criticism and just throwing tomatoes in the dark,” she added.

“Greenwishing is really the opposite of good goal-setting for me,” said Emily Ma, head of Food for Good at Google. “I know many people out there want us to set ambitious goals, but there’s a reason why we might be setting slightly less ambitious goals. We truly don’t want to be just wishing for something to happen. We want to be actually making it happen.”

How to avoid ‘pie in the sky’ goals

“Google generally tends to not talk about anything until we have a pretty good plan to get there, or we’ve already done. No good deed goes unpunished,” Ma said. “We tend to be very quiet about what we do until we’re almost done.”

At Kroger, Senior Director of Sustainability and Social Impact Denise Osterhues said her main challenge is narrowing in on where her team can make a measurable impact on a broad and diverse range of topics.

“We are asked to do a lot of things … and some of the advocacy groups are very single-issue,” Osterhues said. “Our portfolio of topics is huge and covers the entire spectrum of things that we manage for people, our planet and to help create a more equitable, fair, sustainable food system. That list of topics is enormous.”

Osterhues said sticking to a rigorous decision-making process has helped her team set goals that they have become reality.

“The main way we show up, in terms of what we decide to do and what our timeline, is our three pillars: people, planet and systems. We have a very broad portfolio of specific topics in within that platform,” she said. “We make decisions every day, based on balancing the tradeoffs, priorities and feedback and engagement from our stakeholders.”

Osterhues dubbed her process “operationalizing ESG decision-making.” Using this model, her team shares their ESG goals with Kroger’s leadership and poses a question at the end. “How can you help us get these goals done? What is achievable and reasonable?” she said.

This feedback and stakeholder engagement helps her team secure the internal buy-in and the support needed to drive the goal across the finish line, she said.

One example on this process in action, Osterhues added, is Kroger’s recent resistance to cave to mounting pressure to set a net-zero target.

“I don’t know what’s going to happen by 2040 and 2050,” she said. “And I don’t want to just wish for something to happen without having a pretty concrete road map and a really good start.”

Alejandra Sanchez, Driscoll’s social responsibility and sustainability marketing manager, agreed that thoughtful goal-setting is the key to maintaining not only consumer trust, but trust internally with growers as well.

“When you’re so close to your growers, their success, their mistakes are ours; it’s really an interdependent ecosystem,” Sanchez said.

“If we took steps [and set big goals] without really knowing what the process is, you don’t just lose consumer trust, but you lose trust internally,” she said. “You lose trust with your growers. You lose trust and leadership. It can be really damaging in the long run.”

Sanchez added that sees the most authentic and effective sustainability communication as education.

“At the end of the day, there’s a lot of things we’re doing that’s creating behavior change,” she said. “On one side of the spectrum, you have science communication, and on the other side [is] greenwashing. Somewhere in the middle is the sweet spot: strategic storytelling … You need to bring consumers along.”

H-E-B’s latest Austin location leans into experiential shopping

Thu, 16 Feb 2023 19:26:05 GMT

It’s hard not to feel a swell of excitement as a new grocery store swings open its door for the very first time.

Shoppers sidle up to the entrance with anticipation and push new, shiny steel carts down glistening floors, surveying the picture-perfect merchandising displays and unblemished, ripe produce. It’s a rare and lovely moment, filled with equal parts promise and showmanship.

On Wednesday, Feb. 15, 2023, San Antonio-based grocery retailer H-E-B cut the ribbon on its latest Austin-area location — an expansive 97,000-square-foot, two-level store at 2652 Lake Austin Blvd. that not only includes spacious, well-stocked departments but also a barbecue restaurant, coffee shop, pizza takeout and a full bar with patio seating views of Austin’s beloved Lady Bird Lake.

(Farm Journal)

Whoever said that in-person, brick-and-mortar shopping was dead clearly hasn’t stepped inside an H-E-B lately.

Related news: Our top 5 produce retail trends for 2023

Even though H-E-B only operates in one state in the U.S., it looms large among grocery retailers, giving to credence to the saying, “everything is bigger in Texas.” The grocery retailer has a cult-following in the Lone Star State and has continued to enjoy steady growth over the past several years, in both in-person and e-commerce sales. In June 2022, it even beat out behemoths Amazon and Walmart, snagging the top spot in the American Retailer Preference Index from London-based customer data science company Dunnhumby.

E-commerce wins aside, when strolling through the aisles of the newest H-E-B in central Austin, it’s hard to ignore the obvious: The Texas retailer is betting on rich in-store shopping experiences to draw shoppers into its stores. With sprawling produce displays that highlight plentiful Texas and organic options, to fresh tortillas, draft beer and porch views, and ample opportunities to order online and scan QR codes in H-E-B’s new Lake Austin location, the grocer is betting shoppers will want to experience shopping in its aisles firsthand.

Related news: London’s M&S Foodhall puts the veg in Valentine’s Day

Peek into produce

The produce department of H-E-B’s new Lake Austin location leads with plenty of Texas-grown and organic options.

(Farm Journal)

Salad days

A wall of salad invites customers looking for fresh grab-and-go lunch options to look no further.

(Farm Journal)

Integrated shopping

While the experience of picking up groceries, a coffee, prescriptions, tacos or barbecue is clearly the focus on the new store design, opportunities to scan a QR code to check out a menu or order online are sprinkled throughout the store with aesthetically pleasing and adaptable digital signage.

(Farm Journal)

Only in Texas

Just in case you forgot you were in Austin, Texas. Breakfast tacos rank under coffee as grocery staples in Texas’ capitol city.

(Farm Journal)

NGA advocates for SNAP, other programs in 2023 farm bill

Fri, 03 Feb 2023 15:49:45 GMT

Maintaining the dignity of lower-income shoppers and increasing access to fresh fruits and vegetables for all are key goals that the National Grocers Association is pushing for in the 2023 farm bill.

Based in Washington D.C., the trade association represents the independent sector of the food retail and distribution industry. On Feb. 2, the NGA sent a letter outlining its 2023 farm bill priorities to the U.S. Senate Committee on Agriculture, Nutrition and Forestry, and U.S. House Committee on Agriculture.

Independent community grocers account for 33% of all grocery sales, exceeding $250 billion, and more than 1.1 million American jobs, the letter said.

“As deliberations begin on Capitol Hill on the 2023 farm bill, NGA is ready to work with lawmakers to ensure the needs of the independent grocery industry are addressed,” NGA Vice President of Government Relations Stephanie Johnson said in a news release. “Independent community grocers are a linchpin for communities across the country by providing nourishing food to millions of Americans at an affordable price. Legislation must consider the critical role independent grocers play across America so they can continue expanding food access and supporting local economies.”

Some of the recommendations NGA outlined in its letter include:

Maintain SNAP choice

The USDA Supplemental Nutrition Assistance Program is successful because of the flexibility it provides both retailers and SNAP participants, the letter said. SNAP choice ensures families can shop with the same dignity as any other customer by choosing the foods that are right for their situation. Allowing choice also respects the foods of various cultures.

Make SNAP online permanent and provide technical support for retailers

SNAP online helps the program keep pace with private partners. Almost every state has launched SNAP online purchasing. Congress should make the SNAP online program a permanent feature of SNAP and provide the USDA with the resources to properly implement SNAP online and onboard additional stores, the letter said.

Maintain current program structure and expand access

NGA opposes large programmatic changes to SNAP like block granting or migrating to bulk food distribution boxes, ideas that threaten the viability of grocery stores in the communities that need them most.

Expand and streamline GusNIP

Expanding access to Gus Schumacher Nutrition Incentive Program (GusNIP) will help families make healthier choices and support their local economies. Data from the first years of the program shows that the program is working and consumers participating in this program have increased purchases of fruits and vegetables. Congress should build upon the success of this pilot and target resources to communities in need, the letter said. GusNIP provides incentives for shoppers buying fruits and vegetables at the point of purchase. It also includes a produce prescription program and provides training and technical support for these initiatives.

Protect retailers from an EBT tax

Grocers are constantly being confronted by fee increases in the acceptance of card payments. These fees are quickly becoming one of the biggest operational costs for retailers, often cited as the second-highest operating cost behind labor, the letter said. NGA is strongly urging Congress to permanently prohibit processing fees on EBT transactions and protect retailers from an EBT tax.

“Independent grocers are committed to expanding access to healthy foods across the United States through these strong public-private partnerships,” Johnson said. “SNAP is necessary for feeding families, raising healthy children and supporting local communities, and we look forward to working with Congress to ensure the program is strengthened.”

To read the full letter, click here .

Judging a book by its cover — How to determine a ripe banana

Fri, 27 Jan 2023 21:02:45 GMT

It’s unlikely that 19th century Irish novelist Margaret Wolfe Hungerford was gazing at a banana when she wrote, “beauty is in the eye of the beholder,” but the well-worn adage is especially true when it comes to bananas.

Any produce retailer who’s peered longingly into a case of the sunny-hued fruit, hoping for a very particular shade of yellow green, can confirm that what constitutes a perfect fruit specimen to one person can be a total disappointment to another. Often, the shade of cavendish banana that’s most desired depends on a number of fulfillment needs, timing and logistic factors held in the mind — or Excel spreadsheet — of the produce team.

Depending on ripeness, bananas range in color from shades of almost hunter green flecked with whispers of yellow, all the way to deep canary yellow speckled with pinpricks of brown. Where a banana falls on this green-to-yellow range holds the key to where this banana will travel next on its circuitous journey from farm to produce aisle.

Related news: Have a ‘light bulb moment’ with garlic

To support the industry, the U.S. Department of Agriculture publishes a numbered color index that conveys quick-glance standardization to help produce buyers make decisions. Depending on whether the case of bananas in question looks like a No. 2 or a No. 5 will determine the exact amount of time the bananas will spend in a ripening room, benefiting from specific temperature controls and piped-in ethylene gas that helps ripening progress smoothly.

After close monitoring in the ripening room confirms that the fruit is the perfect golden yellow color, the fruit is transported to the store. At the store, the bananas are tucked into merchandising displays. Only now can the produce team sit back and wait to discover if the bananas pass the final, most difficult desirability test: Will the ripe fruit catch a shopper’s eye?

Plenty partners with Walmart, secures $400M in funding

Fri, 27 Jan 2023 21:01:29 GMT

Just when you thought the controlled environment agriculture hype was winding down, San Francisco-based vertical farming company Plenty Unlimited Inc. secures its largest investment to date.

The indoor ag startup procured $400 million in a Series E financing round, led by One Madison Group and JS Capitol, that includes Walmart and existing investing partner SoftBank Vision Fund 1 in January 2022.

Leaders from Walmart and One Madison Group will join Plenty’s board of directors, and the $400 million in funds will propel Plenty’s growth, which includes using its technology platform to sell multicrop farms directly to its business partners, according to a news release.

Related news: Lakeside Produce files for bankruptcy

“The indoor farming sector is at an exciting inflection point, poised to reach its full potential as a new asset class that addresses the significant need to provide access to fresh, nutritious food year round, even in geographies where traditional farming is difficult,” Omar Asali, chairman and CEO of One Madison Group, said in the release. “Plenty has truly ‘cracked the code’ on the technology and economics of indoor farming. It has developed an innovative and scalable model that can deliver fresh, sustainable produce to retailers, growers and governments anywhere in the world.”

Partnership with Walmart

In addition to financing, Plenty has signed a commercial agreement with Walmart to “lead a new category of fresh products and bring Plenty farms closer to Walmart customers to offer pesticide-free, sustainable produce year round,” according to the release. The partnership will kick off by first sourcing Walmart’s California stores with Plenty’s leafy greens from its Compton farm.

“We are pleased to work with a strong group of investors who recognize how Plenty’s proprietary approach to building and selling farms delivers a scalable, cost-efficient pathway to bringing fresh, clean produce to market 365 days a year, anywhere in the world,” Plenty CEO Arama Kukutai said in the release. “Having Walmart, as one of the world’s largest retailers, partner with us demonstrates the rising importance of indoor agriculture to the future of fresh and their belief in Plenty’s unique technology solution.”

Closure of Plenty’s Tigris farm

Amid heady financing rounds and new partnerships, it’s not all rose-colored glasses in Plenty’s vertical empire. While Plenty’s Compton farm continues to flourish, Plenty’s Tigris vertical farm facility, opened in 2019 in South San Francisco, will likely shutter in the coming weeks.

Filing a layoff notice for 18 employees with the state of California effective Jan. 31, 2023, Plenty cited the “permanent closure” of its 200,000-square-foot Tigris facility.

The company confirmed in a statement to AgFunder News that, “As we work to complete our buildout and ramp-up of the world’s highest-output indoor vertical farm in Compton, we will shift all commercial production there. In 2023, we will be closing our South San Francisco facility. Our research & development facility in South San Francisco helped us expose the market to Plenty produce, but we have outgrown its capabilities.”

“With support from leading retailers and growers and a new focus on selling farms directly to partners, we believe that Plenty is at a critical inflection point that will have a lasting impact on the entire industry,” Andrew Zloto, director at SoftBank Investment Advisers and Plenty board member, said in the release. “We’ve been a long-term partner to Plenty and are delighted to continue to support them as they continue to innovate and rewrite the playbook for indoor growing.”

Shoppers lean into New Year’s Eve festivities, shelving inflation worries

Tue, 27 Dec 2022 16:44:59 GMT

Not frightened by inflation, Americans are stepping up their New Year’s Eve festivities this year, focusing party spending on food and libations, according to a recent report by Chicago-based market research company Numerator.

The data company surveyed 1,510 shoppers about their Christmas and New Year’s plans on Dec. 1-5, 2022, and detailed how Americans plan to mark the passage to the new year in its December holiday report .

“While celebrating at home with immediate family remains the top way to celebrate, house parties, bars and restaurants will all see increased activity this year,” according to the report. “New Year’s Eve remains a more spontaneous holiday for some, over one-in-ten still evaluating plans.”

Related news: The Packer’s 2023 Organic Fresh Trends revealed

Overall, the majority of consumers are planning on shopping for New Year’s Eve spreads themselves instead of going out, according to the report. Almost half of New Year’s Eve celebrators report that they plan to celebrate at home with family this year, on par with 2021 findings.

However, those who plan to attend small, in-home gatherings total 30% in 2022, a 7% increase from 2021.

Revelers planning to ring in the new year at a bar or restaurant make up 19% of consumers, up from 13% in 2021. About 1 in 10 partygoers plan to gather at a large celebration in someone’s home, up slightly from the previous year.

Food and alcohol leading New Year’s festivities

Three-fourths of consumers plan to purchase food for New Year’s Eve, and over half anticipate picking up alcohol to usher in 2023, according to Numerator’s report.

Tallying entertainment expenses, shoppers report that they expect little or no impact from inflation. In fact, 56% of consumers plan to spend the same amount as they did last year, with only 19% planning on spending more.

According to Numerator’s December holiday report, most consumers don’t plan on spending more than $100 on food, alcohol or any other entertainment expenses for the last holiday of 2022.

Health insurance, SNAP benefits can pay for produce online via FarmboxRx

Tue, 15 Nov 2022 07:28:04 GMT

More and more consumers can use their health insurance to buy fresh produce online and have it delivered to their homes, and now those who qualify can supplement that by using their SNAP/EBT cards online.

The U.S. Department of Agriculture approved Farmbox Direct’s healthcare initiative, FarmboxRx, to offer its fresh produce delivery nationwide to people whose health insurance, including Medicare and Medicaid plans, have this food benefit as part of the plan. That includes the Over the Counter, or OTC Network.

“We’ve gone from three health plans to 51 health plans in just 10 short months,” said Ashley Tyrner, CEO and founder of both Farmbox companies. “We do have rapid, rapid growth, but we’ve been preparing for this a long time.” The company is about to close on its Series A round of financing by the end of 2021.

Also, the USDA approved FarmboxRx as the only national fresh grocery retailer to accept Supplemental Nutrition Assistance Program (SNAP) benefits as a form of online payment, she said. Large national retailers such Amazon and Walmart have been accepting SNAP payments online for a few years now, Tyrner said, but don’t deliver fresh food to every part of the U.S., just shelf-stable food.

“Being that we are we are the only national grocery that delivers fresh produce nationally already, and we have that wide footprint of going everywhere FedEx goes, it’s truly the way to tackle the food desert and food insecurity issue at its core,” she said.

SNAP benefits are given to qualified participants each month on an EBT card (electronic benefits transfer), which works like a debit card, according to Care.com. SNAP is a nutrition program, not a welfare cash-assistance program, but it’s still referred to as “food stamps,” available on a card.

Farmbox partners with health plans to help members with conditions such as diabetes, hypertension, cardiovascular disease and social determinants of health, or SDOH. Those determinants are the environmental conditions where people are born, live, learn, work, play, worship and age that affect health, functioning and quality-of-life outcomes and risks, according to the U.S. Department of Health and Human Services .

In 2020, Centers for Medicare and Medicaid Services allowed insurers to offer supplemental, SDOH-related benefits for Medicare Advantage plans. Companies taking advantage of this allowance so far include Aetna, Anthem, Cigna, Humana and UnitedHealth Group, according to Georgetown University Health Policy Institute .

(Farm Journal)

“Health equity is huge to us as well,” Tyrner said, “and really, just trying to get food to health plan members to change their outcomes, members who lack access to fresh fruits and vegetables, but also giving them education along their journey.”

FarmboxRx has a content development team and in-house clinicians who curate the content of each week’s farm box around the consumer’s chronic condition, such as a person with diabetes or an at-risk pregnant woman.

In these ways, FarmboxRx continues to address the socio-economic, geographic and health barriers that prevent people from taking control of their health, she said.

Tyrner’s mission is personal. Eleven years ago, she was pregnant and became a single mom living on food stamps in a rural food desert.

“My biggest initiative has always been to be able to accept food stamps online as a form of payment to give those who are living rural food deserts and who are food insecure a fighting chance,” she said. “There’s a very common misconception that just because you’re low income, you don’t want to eat healthy. And it’s like, no. They’re not eating healthy because they don’t have accessibility, or they don’t have the funds to pay for healthy food, right?”

January 2020 was when Centers for Medicare and Medicaid Services, or CMS, changed policy allowing Medicare Advantage and Medicaid plans to offer food as a benefit.

“During that time, we have worked to really morph ourselves into a total wellness solution, like a health-tech company,” she said.

And all but a handful of states have transitioned to accepting online SNAP payments for fresh produce through the USDA pilot program, which was about a dozen states before the COVID-19 pandemic started, Tyrner said.

Farmbox Direct and FarmboxRx use Liberty Fruit Co. to manage operations and distribution centers in Kansas City, Kan.; Sacramento, Calif., and New Jersey. By the second quarter of 2022, the company plans to open distribution centers in Florida and Texas as well.

“Really, to just keep up with COVID delays from FedEx and UPS,” she said, “we’re opening more facilities to be closer to the end user.”

Using healthy food — for at-risk populations without prior access to it— as medicine can help lower costs and claims to Medicare and Medicaid, which can lower the bill to taxpayers, she said.

Tyrner was recently asked by a venture capitalist, “’Do you think that eventually all health plans are just going to have to have grocery stores?’ And I’m like, ‘Well, I hope so.’ Right? I hope so,” she said.

“But, I do think that the market is going there. There is a there is a big push now to offer other benefits outside of prescriptions or medications.”

Hispanic grocer Cardenas Markets accepts EBT SNAP payments via Instacart

Tue, 15 Nov 2022 07:27:26 GMT

Cardenas Markets, a Hispanic grocer based in Ontario, Calif., is the latest grocer to accept Electronic Benefits Transfer and Supplemental Nutrition Assistance Program payments via the online grocery platform Instacart.

“We are proud to be the first Hispanic retailer to accept EBT SNAP as a form of online payment via Instacart,” Adam Salgado, chief marketing officer at Cardenas Markets, said in a news release. “We are consistently looking for ways to make the Cardenas Markets shopping experience even more convenient and accessible for all of our customers.”

One of the largest Hispanic grocery chains in the country, Cardenas Markets operates a total of 52 stores under the Cardenas banner and seven stores under the Cardenas Ranch Markets banner in California, Nevada and Arizona.

To subsidize costs for EBT SNAP participants, Instacart will waive delivery and pickup fees on all EBT SNAP orders through March 31, 2022, for customers using a valid EBT card associated with their Instacart account in connection with their purchase. Additionally, Instacart offers support in customers’ preferred language, including Spanish.

“At Instacart, providing people greater access to food is at the core of our mission, and we’re proud to deepen our partnership with Cardenas Markets to provide more families a convenient, accessible way to get their fresh food and pantry staples,” said Sarah Mastrorocco, vice president of access to food and nutrition at Instacart. “We believe that grocery delivery should be convenient and affordable for all, not a luxury for some. To get there, we need to make sure online grocery is accessible to everyone.

“We recognize the importance of expanding our EBT SNAP offering and partnering with key Latin grocer Cardenas Markets is an important milestone as we continue to increase access to food and nutrition,” Mastrorocco added.

According to Instacart, more than half of all federally approved retailers accept EBT SNAP online through its platform, serving more than 25 million people experiencing food insecurity across the U.S.

Where available in California, Arizona and Nevada, EBT SNAP participants are able to shop from Cardenas Markets via the Instacart website and mobile app.

Once an Instacart customer profile is created, customers can enter their EBT food card information as a form of payment in their profile. Customers will need a secondary form of payment for nonfood items such as taxes, tips and fees, per federal SNAP guidelines. Customers can then enter their ZIP code to determine if they are near a Cardenas Markets store and begin shopping and selecting items from the retailer’s EBT-eligible products.

After items are added to their cart, customers will be able to select how much of their benefits they would like to allocate to the order. Orders for delivery and pickup can be placed by customers for receipt in as fast as 30 minutes or scheduled several days in advance.

In related news, earlier this week, Price Rite Marketplace, a registered trademark of Wakefern Food Corp., also began accepting EBT SNAP benefits as online payment for groceries through Instacart and the cooperative’s own online storefront, powered by Instacart.

Customers who qualify for EBT SNAP benefits are now able to use their funds when shopping Price Rite Marketplace stores online on Instacart’s website and mobile app from all of the Keasbey, N.J.-based grocer’s 60 locations across Connecticut, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania and Rhode Island.

Shoppers must enter their EBT card as the form of payment on their Instacart account and select items from the list of EBT SNAP-eligible products as part of their Price Rite order. Another form of payment is needed for delivery fees, tips and taxes.

“Price Rite Marketplace is proud to accept EBT SNAP online for delivery and curbside pickup orders through Instacart,” Kevin McDonnell, senior vice president of operations for Price Rite Marketplace, said in a news release. “This new online shopping payment option for customers who use EBT SNAP will make it easier for many families to get the fresh foods and essentials they need.”

Schnuck Markets partners with Instacart, offers shoppers quick delivery e-commerce

Tue, 15 Nov 2022 07:25:42 GMT

Midwest grocery retailer Schnuck Markets is expanding into e-commerce, teaming up with Instacart to introduce a quick turnaround grocery delivery service called Schnucks Now.

“Schnucks is always looking for new ways to streamline our digital experience and provide value and convenience to our customers,” Schnucks senior director of digital experience Chace MacMullan said in a news release. “We are excited to introduce this new service to meet our customers’ urgent grocery needs and proud to expand on our current delivery options available through Schnucks Delivers.”

Schnucks Now is a new online grocery shopping service that targets small order fulfillment delivered as quickly as possible. The new service will allow customers to shop from its assortment of products such as fresh groceries, pantry, household essentials, alcohol, meals and snacks online. Delivery for Schnucks Now orders targeted at approximately 30 minutes from the time the order was placed.

Related news: Instacart rolls out six new grocery tech platforms, giving grocers tools to compete

“We’re dedicated to finding more ways to make the online grocery experience accessible and convenient and we’re proud to launch Schnucks Now to give customers a new, easy way to get what they need fast,” Ryan Hamburger, vice president of retail partnerships at Instacart said in the release.

The cost of the service will include basic delivery fees, service charges and will be available to customers via the Schnucks Rewards App, on, schnucksnow.com or Instacart. Delivery will be available in all markets served by Schnucks during regular Schnucks store operating hours.

Schnuck Markets operates 112 stores, serving customers in Missouri, Illinois, Indiana and Wisconsin. According to Forbes’ 2021 rankings, Schnucks is the 160th largest privately-owned company in the United States and the 15th largest privately-owned grocer.

Buyers want suppliers to have these skills

Tue, 15 Nov 2022 07:25:34 GMT

Like fast moves on the dance floor, successful suppliers hone their craft by practicing a well-coordinated two-step. You can have the best produce out there, but – for better or worse – it takes more than stellar product to be at the top of every buyer’s speed dial.

We spoke with produce buyers across the industry to learn what qualities are at the top of their wish list when looking to partner with a supplier and source fruits and vegetables for shopping carts.

Communication is king

When asked if there was one thing a supplier could do to ensure a productive relationship with their buyer, the resounding consensus among produce buyers was clear: great communication is the foundation of a productive purchasing relationship. No matter what type of business model or arrangement you’re seeking with a buyer, it all starts with a clear message.

(Farm Journal)

“Any great relationship needs to have strong communication. I would rather be over-communicated to than under any day of the week,” said Katie Jakubowski, senior produce category manager at Topco , an Illinois-based retail food purchasing company. “I also appreciate a sense of urgency and the willingness to work together to find solutions.”

Not only does day-to-day communication need to be solid, “the supplier needs to be aligned and involved with the sourcing and commercial strategy,” said José Angel Sanchez Salas, produce and floral director at Walmart .

Sam Duda, associate strategy manager of produce at meal-kit provider HelloFresh , appreciates consistency when partnering with suppliers. “Being reliable is always the best! Suppliers that pick up my call on Saturday when we are in a pinch get a gold star in my book.”

At the top of the wish list for James Braswell is open, honest and responsive communication. As director or produce procurement for Midwestern retailer Fresh Thyme Farmers Market, he recommends keeping “the buyer well-informed and out front of markets, supply issues and quality issues.”

Buyers rely on their suppliers to ensure that they are experts in their categories and commodities, added Braswell.

It all boils down to delivering a high level of care, said Hernan Avalos, senior sourcing manager at Walmart . “Empathy and understanding of the needs of a buyer to serve their specific business and solutions is required,” Avalos said. “The fruit business is very dynamic. We deal with a lot of uncertainty, so quick answers and finding solutions are a must.”

(Farm Journal)

Tips to up your game

Once you’ve established a solid foundation of good communication habits, buyers shared some advice on how to leave a good impression and secure the next order with minimum hassle.

When reaching out, start with the right details. “Accurate information up front” goes a long way, said Braswell at Fresh Thyme Farmers Market.
Know your market and double-check everything. “Asking questions, double checking [purchase orders] and keeping me updated on the markets will shoot you to the top of the pack!” said Duda at HelloFresh.
Get organized. “Have quantities and pricing locked and loaded. Also, have an understanding upfront of available raw materials to anticipate shortages or prorates so we can communicate accordingly,” said Jakubowski at Topco.
Outline a plan. “Schedule periodical sessions with buyers in order to review performance, needs, next steps and strategies,” said Sanchez Salas at Walmart.

(Farm Journal)
Send reminders and follow ups. “Following up on emails and calling me when there is an issue and I have not responded” is helpful, said Duda. “Everyone gets so many emails a day so when a supplier gently bumps up an email to my attention, I have always appreciated that.”
Avoid assumptions. Especially with international markets, constant communication is essential. “Producers often think other markets are like their own regional markets, and this is often not the case,” said Avalos at Walmart.

Pet peeves that give buyers headaches

While there are countless ways to dazzle your buyer, just make sure you don’t get on their bad side. When in doubt, steer clear of the following pitfalls and bad habits.

(Farm Journal)

Lack of communication and last-minute communication are big red flags for Jakubowski at Topco and Braswell at Fresh Thyme Farmers Market. Duda at HelloFresh agrees. Suppliers who share “last-minute or no notification if a [purchase order] short or zero ships” is one habit that will sour an otherwise solid relationship, Duda said.

Related news: Retailers drive up organic produce sales with key strategies

The devil is in the details. “Confirming [purchase orders] and advising on any short ships immediately when it happens” is critical, she said. “Nothing is more of a bummer when a [purchase order] arrives short, and there is a mad scramble to secure more.”

Sanchez Sala at Walmart frowns on suppliers who don’t anticipate opportunities or situations that could affect their performance.

What’s more, if you’re shipping long distances, double check your product quality, said Avalos at Walmart. “If you are shipping fruit that needs to travel several days, send the best possible. Don’t take the risk to send something you have in the inventory just because it needs to be moved right away,” he said. “At the end of the day, I can assure you that this causes more problems for all parties involved than solutions.”

And make sure you plan for customs. “When you export, all export paperwork must be prioritized. You could ship out your best fruit with the best price, but if we can’t move it out from customs, it’s worth nothing,” Avalos said.

In it for the long haul

(Farm Journal)

When dreaming up the skills and traits that make up the ideal supplier-buyer relationship, it’s helpful to remember that dynamic partnerships aren’t built overnight.

“Think in the long term with the market you serve and speak about this with your buyer,” Avalos said. “As a buyer, we must do our part as well and not judge a supplier just for one season.”

At the end of the day, the supplier-buyer relationship is about building rapport that will sustain you both for the long run.

“Buyers and suppliers are all unique human beings. Some work well together and some do not,” Fresh Thyme’s Braswell said. “It’s about finding the right balance that creates a special partnership that can turn into lifelong relationships and friendships. We are all in this crazy business together, and no one understands our pain other than those of us entrenched in it daily.”

12 attributes of mental toughness for produce industry leaders

Tue, 15 Nov 2022 07:35:04 GMT

In the movie “A League of our Own,” when Dottie Hinson wanted to quit baseball because, as she said, “It just got too hard,” Jimmy Dugan’s reply always stuck with me. He said, “It’s supposed to be hard. If it wasn’t hard, everyone would do it. The hard is what makes it great.”

The classic Tom Hanks line is how I feel about the produce industry. Produce is hard. Whether you are a supplier or a retailer, it’s a tough job. We didn’t sign up for it because it was easy. We signed up for it because we love the challenge.

To be successful in produce you must be a great leader. Great leaders are mentally tough. One of the great leaders in the produce industry was the late Frieda Caplan. Frieda used to say, “Success came because I never saw obstacles.” Frieda was a pioneer in the produce world and was mentally tough.

Great leaders all have one thing in common. They are mentally tough. Here are my 12 attributes of mentally tough people.

Inspired already? Print this out for later reference. You can congratulate yourself as you keep checking these boxes in 2021!

They control their emotions

Great leaders don’t let their emotions control them. Great leaders have a high EQ – emotional intelligence. EQ is defined as the ability to identify, evaluate, control and express emotions.

You cannot be mentally tough without the ability to fully understand strong negative emotions and do something productive with them.

How a leader shows up is everything. Your attitude, your words, your body language, your facial expressions – those scornful faces you don’t think anybody else sees? They see them – all contribute to the value – or lack of value – that you, as a leader, create for others.

They are confident

Mentally tough leaders have confidence in themselves, and it shows. They walk tall. They have command presence. When great leaders walk into a room, they fill the room. People like to work with leaders who are truly confident.

There is a natural tendency to trust people more when they appear confident. For most of us, dealing with a confident person helps assure us that the person is also competent.

Your appearance, your posture and personal presentation, how you walk, how you speak and the gestures you use all project your personal command presence.

Confidence doesn’t mean arrogance. As a matter of fact, great leaders’ confidence is balanced with humility and vulnerability.

Remember Henry Ford’s quote: “Whether you think you can or think you can’t—you’re right.”

They speak with power

Mentally tough leaders not only hold themselves with power; they speak with power. They use phrases like “I can,” “I am,” “I will” and “I choose.” They don’t apologize for their assertions. Their assertions are backed with facts. Words matter.

Mentally tough leaders practice straight talk. People can detect BS a mile away, especially if they are skeptical already.

There are two groups of followers when it comes to leadership: people who buy into what you’re selling and those who still need convincing.

They neutralize negative people

Mentally tough leaders control their interactions with negative, toxic people by keeping their feelings in check. Negative, toxic people never let things go. They can’t move forward. They bully, lie, intimidate.

They are constantly creating drama and playing the victim. They act out of fear and insecurity.

Remove these people from your organization or, at the very least, minimize their influence.

They embrace change

Mentally tough leaders don’t resist change; they embrace it. If you resist change, you will eventually get run over by it.

Instead, you can choose to cooperate with it, adapt to it and figure out how to benefit from it. When you embrace change, you will see it as an opportunity to grow.

They face fear

Actor and martial artist Bruce Lee one said, “Courage is not the absence of fear; it is the ability to act in the presence of fear.”

Put all remote possibilities out of your mind. Face your fears before you start something. Declare the alternative is a possibility.

They embrace failure

Kobe Bryant is the NBA’s career leader in only one statistic: missed shots, with a total of 14,481. He shot, and he kept shooting. He knew he’d miss 100% of the shots he didn’t take.

They don’t dwell on mistakes

Mentally tough leaders consider failure to be a lesson and a steppingstone. Mentally tough leaders don’t let a mistake zap their enthusiasm. They move on.

They don’t wait for an apology to forgive

Mentally tough leaders know that once you let go of grudges and forgive, you have power. Grudges and negative events from your past ruin today’s happiness. Hate and anger are emotional parasites that destroy your joy in life.

They don’t interpret other’s actions

In the book “Setting the Table,” restaurateur Danny Meyer talks of making charitable assumptions by having a mindset that assumes the best intentions of others.

Mindsets often become self-fulfilling prophecies, so what you think of someone is likely to happen.

They’re relentlessly positive

How do you see life? Is the glass half full or half empty? Mentally tough people are relentlessly positive. They refuse to recognize the negative. Positive thinking is a way of living their life, and they look for the best results from the worst conditions.

They make a conscious choice

You can choose to be positive or choose to be negative. You can choose to be a creator or be a complainer. You can choose to take responsibility or avoid it.

Mentally tough leaders consciously choose their attitude and behavior to inspire positive attitude and behavior in others. It’s always your choice.

So in the end, being a mentally tough leader is completely within the grasp of every person.

What type of a leader to you want to be? It’s your choice. In the words of Sean Connery’s character Malone in the “The Untouchables,” the question is this: What are you prepared to do?

Mike O’Brien, president of O’Brien Innovations, has more than 30 years of retail leadership experience, including 15 years as a vice president of produce. He received the Produce Retailer of the Year award in 2004. His new consulting practice covers retail merchandising and business development, among other areas.

Check out Mike’s previous columns for PMG at the following links:

What makes a great produce merchandiser — We have a lot of conversation about produce managers, inspectors, buyers and category managers, but perhaps the unsung hero in produce department operations is the produce merchandiser/specialist.

Succession planning for produce managers — A great plan won’t hit your goals without execution at store level. I had a boss once who used to tell me, “Nothing is real until it happens in the store.” To have great execution you need great produce managers.

Winning the war on shrink — Runaway shrink is the nemesis of an otherwise well-run produce operation. It’s almost impossible to hit your targeted numbers if you don’t have a handle on shrink.

FreshDirect’s Scott Crawford talks merchandising produce online

Tue, 15 Nov 2022 07:34:20 GMT

New York City-based online grocer FreshDirect has more experience than most retailers when it comes to merchandising produce on an e-commerce platform.

Core to the success of FreshDirect is its vertically integrated supply chain and stringent quality control, according to chief merchandising officer Scott Crawford, but because the company has been selling fresh food online for nearly 20 years, it is also further along the path than many retailers in delivering a compelling online shopping experience.

One of the concerns of the produce industry as the online share of grocery sales increases is that produce consumption may suffer because many e-commerce sites are not designed to encourage impulse sales to the same degree that physical stores are.

Indeed, Crawford said more than 30% of FreshDirect customers shop exclusively from their “re-shop” basket, which shows only items that a customer has previously purchased, with the most frequently purchased items floating to the top of the list.

FreshDirect has also been creative, however, in giving customers reasons to branch out from their normal basket. The company uses in-house photography and research and development in an effort to create Instagram-worthy product and recipe imagery, Crawford said, and the journey from inspiration to purchase can be quick; shoppers can click on a picture and see the five ingredients needed to make the recipe, then add them to the cart.

Another key feature of the site is its star rating system, which FreshDirect has been using for more than a decade. Instead of letting customers rate and review items, however, FreshDirect has its quality control team rate hundreds of items daily, and the items with the highest number of stars float to the top of the list.

The system creates some internal push and pull, Crawford said, because if procurement buys a product that is not up to par, quality control will rate it accordingly.

Having integrity in those ratings, however, gives shoppers the confidence to trust them, and because what’s in peak season is usually high-ranking, shoppers tend to start anticipating the seasons for different items and buy with seasonality in mind.

FreshDirect also uses recommendations based on artificial intelligence. If people who buy asparagus regularly also tend to buy high-quality butter, for example, the latter product might be suggested to someone buying the former in a “If you like this, you might also like this” style of presentation.

The retailer also creates a list of the fresh foods that its team is most excited about, and the goal is to have nothing on the list that isn’t perfect.

While the bells and whistles of the site can provide inspiration for other retailers looking to improve their online presence, Crawford said the foundation of FreshDirect is quality and freshness, the fundamental building blocks for any retailer.

“The real secret is short supply chain, the fast turnover of food,” Crawford said. “We have literally the largest grocery store in New York City, and I always say it’s the fastest-turning grocery store. Our inventory turns are way north of what even Whole Foods would consider as good inventory turns because we’re buying just what we need when we need it and the customer’s getting it as we buy it.”

The new issue of PMG magazine is here!

Tue, 15 Nov 2022 07:29:25 GMT

We’ve got quite a lineup for you in this issue of PMG magazine. Along with a slew of commodity-focused features, the magazine features contributed columns from a number of respected industry leaders.

Check out the digital edition here.

Here are excerpts from a few of the pieces you’ll find in this latest issue.

Recruiting and retaining the next generation of produce leaders

“There is a negative narrative which has impacted retailers’ ability to attract, develop and retain staff over the past number of years, and now it has reached possibly a critical stage at the worst possible time, as so much change and opportunity at retail is taking place,” writes Joe Watson, former director of produce for Rouses Markets and now vice president of membership and engagement with PMA.

“Both within their organizations and beyond them, how can retailers create awareness of and demand for the opportunities that exist through a career in produce retail?”

Read Joe’s full column here.

(Farm Journal)

The opportunity for better-tasting fruit

“I understand logistics and storage is an imperfect world. However, I want everyone to understand that temperature abuse is the number one cause of shrink, disease, scoreable inspection disorders, and poor flavor and texture,” writes Dennis Kihlstadius, an expert on post-harvest handling of climacteric fruit and the owner of Produce Technical Services.

“We are talking millions of dollars every year throughout the supply chain with all produce items. It is one of the factors we can actually control if we really want to. We have learned to store and ship bananas and tomatoes correctly over the years. What about the other temperature-sensitive produce items?”

Read Dennis’ full column here.

(Farm Journal)

Why produce retails and ads don’t look the same as last year

“The ramifications of COVID-19 on our business have manifested themselves in ways many of us who write ads did not anticipate,” writes Steve Patt, a member of the leadership team for Tourtellot and Co. “Those consequences include increases in the cost of doing business as a result for growers, packers, truckers and wholesale distributors.

“The result has been an uptick in negative noise. We can hear – and feel – the tension and the disappointment in the conversations we have with many retailers as they plan out ads. The friction is understandable and predictable. There is always a little price tension between buyers and sellers. That being said, the pandemic has raised that tension to an uncomfortable level in recent weeks as the reality of doing business in the time of COVID-19 sets in.

“However, my friends, this is where we can shine as an industry.”

Read Steve’s full column here.

(Farm Journal)

What makes a great category manager

“There are many factors that are important for the profitability of a great produce department,” writes Mike O’Brien, former vice president of produce for Schnuck Markets and now president of O’Brien Innovations. “We focus most of our conversations on the buying and merchandising of the produce that we sell. We talk about sales and controlling shrink.

“What ties all these topics together into a nice profitable bow is category management, the study of how different SKUs in a department interact with each other. That information guides decisions on assortment, everyday retails, promotion, store sets and more, and it helps the department align with overall company business goals. So what makes a great produce category manager?”

Read Mike’s full column here.

(Farm Journal)

Late trucks and how to shift the odds in your favor

“Fewer things in life are as certain as death, taxes and late trucks,” writes Armand Lobato, longtime produce retail veteran and current foodservice promotion director for the Idaho Potato Commission.

“The reasons for delayed deliveries can range from understandable causes such as Department of Transportation delays, mechanical breakdowns, bad weather or washed-out roads, to the innumerable human error factors that could fill this page and about ten more.

“Late trucks can put a produce buyer into serious stress mode, especially if he or she needs the produce for shipping out the same day. What can a buyer do to prepare for – and hopefully avoid – this all-too common scenario? Here are a few thoughts.”

Read Armand’s full column here.

(Farm Journal)

Rotation, rotation, rotation

Tue, 15 Nov 2022 07:29:18 GMT

Years ago, “Silent” Calvin Coolidge was followed by the media as he left a Sunday church service.

Hoping to get more than a few words from the reserved president, a reporter asked him what the sermon was about. “Sin,” replied the president.

“Well? What about it?” pressed the reporter.

Coolidge kept on walking and replied, “Preacher’s against it.”

If this produce scribe were to be similarly tracked down about a particularly important work topic, it could very well be something like “Rotation.” To which I would reply, “I’m for it.”

Of course. What else could I say?

Fewer things in the produce aisle are more important than product rotation. I know I’ve mentioned it at least once or a dozen times in one way or another over the years, but it bears repeating.

First, a good rotation starts in the back room. The “first in, first out” method serves as a good rule of thumb. New produce gets put away right away, maintaining the cold chain. Then, older stock is placed (or rotated) so that product is used first.

Take a day or two off from doing this and, before you know it, aging produce gets that much more aged and dehydrated, more difficult to manage and harder to sell.

There are exceptions to the rule, of course: bananas, tomatoes or avocados may arrive riper than what you have on hand, for example. But for the most part, if you rotate your merchandise regularly, you’ll have fresher product and less shrink.

Second, every produce display should be rotated with every stocking. Period.

The temptation to cut corners is strong, don’t we all know? It gets busy. You’re shorthanded. The pressure compels some to skip rotation and pile on top of displays.

It’s so much easier to justify doing so when in a rush: “I can skip it this one time,” or, “I just rotated this yesterday,” or “I’ll catch up tomorrow, when it’s not so busy.”

Trouble is, you’re always going to be busy. So get busy doing the job right.

Summer is a high shrink season. Shrink will increase percentage-wise as the season wears on: produce respiration rates rise, commodities become more volatile, and more inexperienced hands are on deck, covering for vacationing senior veterans. So, rotation must be the prevailing message.

If you don’t faithfully rotate, product quickly transforms into costly layers of shrink that is eventually culled and discarded. Shrink numbers rise and you have unhappy managers and unsatisfied customers.

Follow through with the rotation message? You’ll still be battling a certain amount of shrink. But at least you’re in a position of control, keeping displays looking good and a department you can be proud of.

Armand Lobato works for the Idaho Potato Commission. His 40 years’ experience in the produce business span a range of foodservice and retail positions.

Last call for Produce Artist Award Series entries — Results webinar April 2

Tue, 15 Nov 2022 07:29:52 GMT

PMG’s Produce Artist Award Series wraps up its winter season March 23, so encourage those awesome produce merchandisers and produce managers you know to turn in their favorite displays from the last few months to ProduceArtistAwards@ProduceMarketGuide.com .

As you may have seen, PMG recognizes industry professionals for their great entries throughout each seasonal contest with posts on our LinkedIn , Facebook , Twitter and Instagram accounts, and we also compile photos from entries into free merchandising inspiration resources for industry professionals.

The celebration of merchandising continues with our winter results webinar, during which we’ll feature some of the top overall entries for the produce merchandiser category and the produce manager category and also recognize best displays in key seasonal categories like citrus and potatoes.

The webinar is set for April 2 at 12 p.m. CST. Everyone is welcome to register here to see the event.

One of the favorite features of the event is expert commentary from three longtime produce retailers.

Sharing their insight at the webinar will be:

Mike O’Brien , president of O’Brien Innovations, former vice president of produce for Schnuck Markets, and 2004 Produce Retailer of the Year;
Joe Watson , vice president of membership and engagement for Produce Marketing Association, former director of produce and floral for Rouses Markets, and 2014 Produce Retailer of the Year; and
Armand Lobato , longtime produce retail professional and columnist for The Packer and PMG.

Sign up today for the event at the webinar registration link , and you can check out the Fall 2020 results webinar for a taste of what to expect. We’d love to have you join us!

Buyer Chronicles – Reflections on load rejections

Tue, 15 Nov 2022 07:29:50 GMT

“We’re kicking your load.” Delivering that message to a produce buyer is the toughest part of the job for quality assurance personnel.

Buyers don’t like hearing this news any more than QA likes delivering it. When a produce load shows one or more issues that prevent acceptance, oftentimes it’s the messenger – the quality inspector – who is then subjected to a barrage of questions:

“What? Are you sure? Impossible!...How bad is it? Did you take pictures?...Oh great, I’ve got 300 of those already sold for tonight.”

The shipper isn’t thrilled with the news, either. Nobody wins when a produce load is rejected.

The buyer must scramble and make a series of calls to report and react to the rejection – and in some cases make sales allocations. The supplier or shipper must also react, rebooking product, making calls to their growers, sometimes coordinating a federal inspection with the buyer, and facing the loss of the product value and the loss of future purchase orders.

Rejected loads tie up valuable dock space, create added paperwork and make everyone’s day and week longer than it needs to be.

Fresh produce is, on average, 90-plus percent water, and it is inherently volatile. It can develop issues during growth, harvest, storage, packing or shipping. Post-harvest, issues can include decay, temperature, damage, sizes, packs, grades, brands, varieties, brix, misrotation, dehydration and more.

A good produce delivery compares with a properly executed golf swing; with so many control points to consider, if you just focus on a few fundamentals, you can usually make things work out all right.

Here’s a few thoughts on the sometimes sticky rejection scenario.

Rejection prevention

Be someone’s customer

When you find a competitive shipper that you’re comfortable with, one who provides not only consistent, quality produce but also keeps you informed on changing market conditions – that’s the shipper you want in your corner. Be that shipper’s customer and maintain a good relationship with them. This generally results in uninterrupted supply and minimal rejections.

Know your specs

When you ask for precise product specifications, there is less chance for rejection. For example, ensure that you’re asking for a specific variety (regular parsley or flat leaf?), specific grade (No. 1 or No. 2 peppers?) and specific pack and size (volume fill or tray pack nectarines?). Your chain or organization may require multiple sizes, grades or varieties for the same load.

Confirm your order verbally and in writing to ensure there are no misunderstandings.

Ask for photos

The tight-market strawberries you finally found have “occasional” white shoulders? Get a good example photo before deciding.

Cantaloupe described as having a “nice straw color netting?” Grapefruit showing a little “sheepnose?” Tomatoes have any “catface” growth cracks? Blueberries are “diamonds?” Honeydew described as “eating like candy?” Ensure what’s going to get loaded ahead of time.

Ask for photos, for samples, for brix readings and for other information so you know up front what to expect when the produce load arrives and whether it will be acceptable.

Ask for market conditions, price availability, trends. Is this the early, middle or end of a particular commodity deal? A good shipper-buyer relationship will result in the mention of any possible issues up front.

If the shipper says, “We’re getting close to the end,” or “I’m not sure this is your quality spec,” believe them and consider loading elsewhere or not at all.

These are clues that may indicate that the product is not consistently arriving well. Explaining a product availability shortage is always better than trying to force the issue and loading questionable product.

Special handling needed

Many items need special handling or optional quality-assurance care steps to ensure good delivery.

These include things like Techtrol for strawberries, top ice for corn, broccoli or other select vegetables, fumigation, precooling, cross-contamination precautions such as properly loading conventional with organic items.

Any omission or failure to apply certain proactive steps could result in a rejection or product loss.

Transportation factors

The load must endure short or long distances. Questions a buyer might ask to minimize problems include: Does the load have a safe, seasoned driver? A team? Do they check in frequently and report any issues? Carry a cell phone? Does the transportation company have good quality trucks, updated trailers and quality reefers? Are there temperature monitoring devices or other technology to ensure the cold chain is uninterrupted?

Using a dependable carrier on a regular basis helps minimize transportation-related issues that could result in a rejection or a freight claim.

Post rejection

Maintaining a good supplier-buyer relationship

This isn’t always easy, as rejections adversely stress even the best of relationships.

Keep in mind that you and your shipper are in it for the long haul and rejections happen even to the best shippers.

The shipper usually does everything possible to avoid a rejection. And when one occurs, the shipper usually does everything possible to mitigate the rejection. One example: replacing the product as soon as possible and getting to the source of the issue to minimize the chances of another rejection happening anytime soon.

The buyer can help the relationship by acknowledging the occasional rejection happens, staying pragmatic and taking steps to avoid further rejections with everything that he or she can control, relying on the best advice and data available.

“A little neglect may breed mischief; for want of a nail the shoe was lost; for want a horse the rider was lost; for want of the rider the battle was lost.” – Benjamin Franklin

What joining an association did for my retail company

Tue, 15 Nov 2022 07:27:47 GMT

In 2022, as we embark on a new global association — the International Fresh Produce Association — I’ve been reflecting on my own experiences of what an industry association can do for you and your business.

In 1991, shortly before I became a produce director, I had attended only small, local industry events, usually hosted by a wholesale supplier or similar company. Most of those small events had more of a total-store focus, with little attention given to produce or floral — maybe none at all. I would go to these events with my coworkers and notice how many of them were on a first-name basis with each other. Their relationships with the exhibiting vendors seemed less businesslike and more friendly and personal.

I had no such relationships. But there weren’t many produce people there to chat up, besides possibly a banana or potato exhibitor. I found myself just going along for the ride.

But this disconnect changed for me in a big way in that same year, when I attended my very first Fresh Summit expo and conference by Produce Marketing Association. Not only were my eyes as wide as a child’s on Christmas morning, but my imagination began to expand. I saw the possibilities for our business. I had no idea at the time how pivotal that experience would be for me personally, for our business and its lasting relationships. The conference birthed my passion for produce, not just at the retail level, but for the overall produce and floral industry.

This change didn’t happen overnight.

Change is work

It took time and extraordinary effort, and, I might add, convincing company leadership that being involved and engaged in the industry would benefit our business faster and more successfully than we could’ve achieved alone.

After three years of participating in major industry events, we improved our sourcing and connections with suppliers nationwide. At that time, we had only six stores, so it took a lot to get noticed by large suppliers. We had to sell ourselves and our ability to execute and move product. Most importantly, it was a time of building trust.

Gradually, leadership began to warm to the idea of industry involvement, based on the progress we had made with suppliers, and I finally was able to convince our company to become members of PMA. It was a satisfying moment when company leaders invested in my portion of the business, trusting that it would continue to pay off in overall business growth.

In 2002, when PMA Fresh Summit was nearby in New Orleans, my Louisiana-based company was all in. We roped in store management teams, field specialists and other leaders to attend, so they could see what our fresh produce industry was like. I implored our CEO to come to the event, just to walk the show floor with me. I felt strongly that if I could get him there to see all that our industry is, then we would be set for future engagement. He agreed to take a couple of hours to walk the show floor with me.

We met at the convention center and walked around — with no appointments and no specific mission. We just walked. I introduced him to people, and many others came up to us to say hello as we navigated the aisles. Along the way, he asked questions.

At the end of our time together that day, I’ll never forget what he told me: “I had no idea you knew all these people and that the produce industry was as big as it is. Thank you for all that you have done to make our company name known in the industry.” To say I was happy was a massive understatement. I could have leaped from the Greater New Orleans Bridge (now called Crescent City Connection) over the Mississippi River and never hit the water! My spirits were flying that high. And not for me, in particular, but for our company and our brand. All the years of effort had paid off.

Giving back

The next step for us was to begin to look at opportunities to become industry volunteers. They say retailers are the belle of the ball, meaning everyone wants to connect with the buyer at these industry shows. And yes, I felt that dynamic, and frankly, it was a little overwhelming early on, as suppliers began calling on us to sell their goods. But by the early 2000s, we were actively involved in industry committees and councils. This is when we realized the value of our membership investment was outweighed by the growth of our brand awareness in the supplier community. The ability to provide input from our perspective on large industry topics would not have been possible if we weren’t actively engaged. You can’t put a price tag on that vital role.

Some say that without relationships in the produce retail industry, we are just center store (fairly or not). But think about it for a moment, how much business is done on handshakes in fresh produce? Certainly, contracts and supply agreements are necessary these days, but as long as farmers farm, there will always be ebbs and flows to supply. And when those challenges and opportunities happen, that’s when the buyer and seller relationship matters most. The relationships we built over a 30-plus year period, along with active engagement in the industry at the association level, are what helped our brand become a name which was mentioned from coast to coast in supplier circles. People knew who we were. This brand awareness was not given; it was earned. And trust was a key component in achieving it.

A great mentor of mine often said: “Nothing is free. You get what you give.” If you want something, you have to put effort into it. Otherwise, the result will never be what you expect. When it comes to our industry, we need everyone to be participants. We need voices, we need problem solvers, we need visionaries – we need everyone at the table for all of us to succeed. The new association website is simply freshproduce.com .

Looking forward

On Jan. 3, the International Fresh Produce Association made its debut, and I, for one, am so excited for what comes next. As vice president of retail, foodservice and wholesale, I look forward to leveraging existing relationships and forging new ones. Gathering thought leaders from these three business segments will add extraordinary value to our members.

Had I never taken the leap of faith way back when, to push for being an industry participant, I often wonder: Would the company have achieved the success it ended up having? The answer is a resounding no, and for this reason. We could not do everything we wanted to accomplish on our own. We needed others to help us get to our goal, and the produce industry did just that.
____________________________________________________________________________________________

This column is part of a series by Joe Watson, who spent 30-plus years as the director of produce for Rouses Markets and was named Produce Retailer of the Year and honored as one of The Packer 25, both in 2014. Watson now serves as a vice president of retail, foodservice and wholesale for the International Fresh Produce Association.

Walmart invests in indoor vertical grower Plenty

Tue, 15 Nov 2022 07:27:37 GMT

In what could be the first move of its kind for a massive retailer, Walmart is investing in an indoor vertical leafy greens grower: Plenty Unlimited Inc., based in South San Francisco.

Bentonville, Ark.-based Walmart’s equity investment is part of a $400 million Series E funding round that’s still subject to a regulatory approval and is part of a broader strategic partnership to use this technology to deliver fresh produce to Walmart retail stores, according to a news release.

Walmart will also join Plenty’s board of directors.

The long-term commercial agreement allows Walmart to source Plenty’s leafy greens for all its California stores from Plenty’s Compton farm starting later in 2022. Walmart is the first large U.S. retailer to significantly invest in vertical farming, according to the release.

“We believe Plenty is a proven leader in a new era of agriculture, one that offers pesticide-free, peak-flavor produce to shoppers every day of the year,” Walmart U.S. Chief Merchandising Officer Charles Redfield said in the release. “This partnership not only accelerates agricultural innovation, but reinforces our commitment to sustainability, by delivering a new category of fresh that is good for people and the planet.”

Learn more about salad vegetables.

Plenty’s indoor farming architecture combines engineering, software and sustainable crop science to grow multiple crops on one platform — fast. With many U.S patents, this proprietary tech focuses on efficient use of water and land. Also, by building farms closer to the consumer, Plenty helps reduce transportation and food waste, keeping items fresher for longer in 100% recyclable product packaging.

Vertical farming can supplement traditional farming practices to help increase food supply and alleviate current challenges on the food system in a sustainable way.

(Farm Journal)

“Our farms can be sited anywhere, allowing us to put fresh fruits, greens and vegetables on shelf at all times, at speed, for maximum freshness,” Plenty CEO Arama Kukutai said in the release. “This is a game-changer for the agritech industry.”

Walmart has about 10,500 stores and clubs under 48 banners in 24 countries and eCommerce websites. With fiscal year 2021 revenue of $559 billion, Walmart employs 2.2 million associates worldwide.

Besides Plenty’s California headquarters, the company operates an indoor plant science research facility in Laramie, Wyo. Also, Plenty is building a vertical, indoor farm in Compton, Calif.

Related news:

Shoppers can use supplemental benefits to buy fruits, vegetables at Albertsons Cos. stores

Tue, 15 Nov 2022 07:27:09 GMT

Boise, Idaho-based Albertsons Cos. is allowing shoppers to use their supplemental benefits to buy fresh produce, as well as over-the-counter medications, in the company’s stores.

The new program provides convenient access to customers using prepaid cards funded by Medicare Advantage plans, employer incentives, health care providers or local governments, according to a news release.

“We are committed to offering solutions that deliver access to healthy produce and meals, reduce food insecurity and provide solutions for chronic condition management,” Omer Gajial, executive vice president of pharmacy and health, said in the release.

The food and drug retailer operates stores in 34 states and the District of Columbia with more than 20 banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets and Balducci’s Food Lovers Market.

The company has partnered with technology payments platforms such as Solutran’s S3 to make it convenient for eligible cardholders to use their health-plan funds to shop for hundreds of fresh produce items and over-the-counter products. Shoppers can use their prepaid cards in stores.

“Albertsons Cos. stores are a very popular shopping destination for millions of Medicare Advantage members using the Solutran S3 benefits platform,” Solutran President Mike Rahman said in the release.

In 2022, the platform will issue about $5 billion in food and over-the-counter benefits, he said.

Albertsons Cos. also accepts Fresh Bucks , a local government supplemental program supported by S3, which launched in Seattle to help consumers afford fruits and vegetables. The company is working to expand programs such as Fresh Bucks to more stores.

Related news:

The Giant Co. to give $300,000 in Healing the Planet program

Tue, 15 Nov 2022 07:27:05 GMT

Carlisle, Pa.-based The Giant Co., in partnership with Keep Pennsylvania Beautiful, will grant $300,000 to projects aimed at improving the health and quality of waterways to help protect water resources and improve the overall health of communities.

“Last year’s grant recipients demonstrated that no matter how big or how small a project may be, you can make a difference in healing our planet,” Giant Community Impact Manager Jessica Groves said in a news release. “As we again partner with Keep Pennsylvania Beautiful, this year we are shifting the focus to projects centered around our waterways and water conservation.”

A Keep America Beautiful Inc. state affiliate, Keep Pennsylvania Beautiful’s core programming focuses on litter and illegal dump prevention, cleanup, community greening and proper waste handling and sustainable practices.

The retailer’s 2022 Healing the Planet grant program is accepting online applications now through April 28, through the Keep Pennsylvania Beautiful website.

Eligible projects must be located in areas where The Giant Co. operates stores within Pennsylvania, Maryland, Virginia or West Virginia.

Examples of qualifying projects include:

Stream health and water quality monitoring activities;
Marine debris removal;
Storm water/MS4 education initiatives;
Lake/pond ecology;
Watershed education activities;
Watershed landscape measures;
Rain gardens; • Streambank restoration;
Erosion control;
AMD remediation;
Rain barrels;
Pollution abatement; and
Source water protection.

A total of $300,000 in funding is available, with grants to be awarded at the $2,500, $5,000 or $10,000 funding levels. Awardees will be announced in June.

Last year, 42 recipients received more than $500,000 in funding through the Healing the Planet grant program for projects that focused on building environmental stewardship by connecting people and families to community green spaces, supporting environmental efforts and building community gardens.

As part of The Giant Co.’s Healing the Planet initiative, the company is committed to plastic bag recycling and plastic reduction efforts, zero-waste initiatives, a solar field and bee pollinator habitat, energy-efficient fixtures in-stores, and sustainably sourced seafood, coffee and tea. To learn more, visit giantfoodstores.com/pages/our-purpose.

Also, now through May 31, shoppers can round up their purchases at any Giant, Martin’s or Giant Heirloom Market store at checkout. Funds donated through round-up will benefit Keep Pennsylvania Beautiful; Planet Bee Foundation, a nonprofit organization focused on driving awareness for pollinators in local communities; and Rodale Institute, which develops solutions for the regenerative organic movement.

Tops Friendly Markets promotes Jeff Cady

Tue, 15 Nov 2022 07:26:57 GMT

Williamsville, N.Y.-based Tops Friendly Markets has promoted Jeff Cady to vice president of produce and floral as part of Shared Services Center.

The grocery retailer has stores in New York, northern Pennsylvania and Vermont.

Shared Services Center supports both Tops Friendly Markets and Price Chopper/Market 32, which formally merged in the fall of 2021, according to a news release.

In this new role, Cady is responsible for supporting the produce and floral business at Price Chopper/Market 32 and Tops operating companies. His responsibilities will include communicating and assisting in the execution of key business objectives, developing business strategies, and overseeing projects for the produce and floral operations.

Cady has been with Tops for 32 years, most recently serving as director of produce and floral. He and his family are residents of Cheektowaga, N.Y.

February’s U.S. e-grocery sales rose almost 9% versus 2021

Tue, 15 Nov 2022 07:27:12 GMT

U.S. shoppers are buying their groceries online even more than they were the same time in 2021.

In February, the total U.S. online grocery market gained 8.5% in sales compared to the same period a year ago, according to the Brick Meets Click/Mercatus Grocery Shopping Survey fielded Feb. 26 and 27. Brick Meets Click is a grocery analytics firm, and Mercatus sells digital commerce platforms.

That’s $8.7 billion in sales during February, according to a new release.

Pickup sales, the largest segment of eGrocery, grew 6% versus a year ago, generated $4 billion in sales and accounted for 47% of the total sales during the month;
Delivery reported a year-over-year gain of 37%, which equated to $3.2 billion, capturing a 37% share of eGrocery spending; and
Ship-to-home, which was the largest segment pre-COVID with over 40% of spending, is now the smallest with just 16%; it finished with $1.4 billion in sales, down 24% year-over-year.

“New service providers, a broader range of retailers selling grocery-related products online and services targeting faster cycle times contributed to delivery’s strong sales growth. But even so, more shoppers still prefer pickup for a range of reasons that will benefit this service model going forward,” Brick Meets Click Partner David Bishop said in the release.

During February, shopper interest in online grocery shopping remained strong, as more than 68 million households bought groceries from a wide variety of providers and retail channels, which was almost 11% higher than last year’s monthly active user base. All three segments — pickup, delivery and ship-to-home — reported double-digit gains in their respective monthly active user bases, with delivery reporting the largest year-over-year gain at about 28%.

However, shoppers are spending less money per grocery order.

Overall spending per order, also known as average order value, softened in February, declining in aggregate by more than 2% year over year, according to the release. Considering the way price inflation has skyrocketed lately, this decline may mean shoppers are putting fewer items in their baskets. The ship-to-home segment was the main contributor to the overall spending decline; its average order value fell more than 25% to under $40 in February 2022, while the pickup segment’s average order value declined by less than 4% and the delivery segment grew by 12%.

February’s order frequency was up 3% versus a year ago, as shoppers completed 2.73 orders during the month, driven by using pickup and delivery more, while ship-to-home dropped by mid-single digits.

The increased order frequency, however, was not evenly distributed across market types. Only in large metro markets did monthly active users complete marginally more orders this year versus last; the three smaller metro market types reported mid- to upper-single digit declines.

The likelihood for an online grocery shopper to use the same service again within the next month came in at over 62% for the month, climbing by more than four percentage points on a year-over-year basis.

“Today, customer expectations for online grocery shopping are different than they were even a year ago, not to mention before COVID,” Mercatus President and CEO Sylvain Perrier said in the release. “To grow their online share of wallet going forward, conventional grocers need to find ways to better satisfy those changing expectations. Inflationary pressures suggest retailers should look at optimizing online meal planning, showcasing store brands and encouraging repeat customers to take advantage of online loyalty discounts.”

Brick Meets Click created and conducts this ongoing independent research initiative, which is sponsored by Mercatus. This February research surveyed 1,790 adults who participated in the household’s grocery shopping. This research is scheduled to run monthly through 2022; then the cadence will be re-evaluated to best suit the industry’s needs.

The three receiving methods for online grocery orders can be defined more specifically:

Delivery includes orders received from a first- or third-party provider, such as Instacart, Shipt or the retailer’s own employees;
Pickup includes orders that are received by customers either inside or outside a store or at a designated location/locker; and
Ship-to-home includes orders that are received via common or contract carriers such as FedEx, UPS, USPS, etc.