Archive For The “News” Category
By USDA ARS
Kiwifruit and their tangy green flesh are routinely purchased and devoured throughout the year by people across the nation. This is no surprise. Kiwis are high in Vitamin C, dietary fiber, and potassium. The subtropical fruit is also a favorite of many southern U.S. producers since the delicious fruit is traditionally grown in warmer climates. California produces the vast majority of kiwis that are sold in our local grocery stores, but due to recent research advancements from U.S. Department of Agriculture scientists, this may no longer be the case.
This was not a snap decision. The research actually began in 1995 when scientists from the Agricultural Research Service’s Appalachian Fruit Research Service (AFRS) planted second-generation seedlings that originated in Rome, Italy. Only two vines survived the cold winter temperatures between 1995 and 2015, with a record low temperature during that period of –5.8 F. Of those two vines, ‘Tango’ (female) and ‘Hombre’ (male) were planted and evaluated in the AFRS’ orchards before a new crop proved that these particular cultivars could grow and thrive in traditional Mid-Atlantic and Northeastern winter climates.
In a recently published study, researchers noted that both vines grew vigorously, and received little pruning before bearing fruit. There was also no need for supplemental irrigation, fertilizer, pesticides, or a warm climate for growth.
“This cultivar isn’t currently found in the grocery store,” said Research Biologist Scientist Chris Dardick. “The flesh and texture are very similar to the kiwifruit that people already enjoy and so is the flavor. It’s easy to grow, extremely pest and disease resistant, and readily available for use by producers and nurseries in colder climate conditions.”
Tango’s fruit yields high quality in terms of size and soluble solids and are comparable to the commercial A. deliciosa cultivar Hayward. It can also remain in cold storage for extended periods of time.
The male pollinizer ‘Hombre’ is not patented and can be publicly made available upon request. The female kiwi ‘Tango’ is patented by the USDA-ARS and can be distributed to nurseries or producers once they obtain a licensing agreement. Both plants (‘Hombre’ and ‘Tango’) are essential to produce the kiwifruit. Limited quantities of budwood and/or plants from ‘Tango’ and ‘Hombre’ are also available upon request for evaluation. For more information, please contact AFRS@usda.gov.The Agricultural Research Service is the U.S. Department of Agriculture’s chief scientific in-house research agency. Daily, ARS focuses on solutions to agricultural problems affecting America. Each dollar invested in U.S. agricultural research results in $20 of economic impact.
The U.S. Federal Trade Commission (FTC), charged with promoting consumer rights, sued to block what could be the largest supermarket merger in U.S. history. A merger of Kroger and Albertsons, the FTC said, would lead to higher prices, store closures, and job losses.
The $25-billion deal, announced in November 2022, has seen opposition from the United Food and Commercial Workers Union, as well as multiple senators and attorneys general. The FTC suit is one of the merger’s greatest challenges so far.
“Kroger’s acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today,” said Henry Liu, director of the FTC’s Bureau of Competition, in a public statement.
“Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating.”
As part of the merger plans, the companies intend to divest 413 stores, eight distribution centers, and five private label brands to C&S Wholesale Grocers. The FTC suit has deemed the measures “inadequate”.
“The combined Kroger and Albertsons would have more leverage to impose subpar terms on union grocery workers that slow improvements to wages, worsen benefits, and potentially degrade working conditions,” an FTC statement said.
Kroger responded Monday, stating it would challenge the suit in court and stand behind the merger. Kroger said it would not negatively impact grocery competition and would result in lower prices for consumers and more investments in employee wages.
During 2023, Peruvian mandarin exports totaled 33,878,377 kilos for a FOB value of US$35,847,910. The figures are relatively similar to the 33,563,070 kilos exported in all of 2022 for US$ 37,235,491, Agraria.pe reports.
According to Agrodata’s report, the United Kingdom was the main destination for these shipments in 2023, with purchases totaling US$ 10,186,000.
It was followed by the United States with US$ 7,286,000, Canada with US$ 5,706,000, the Netherlands with US$ 5,361,000, Japan with US$ 2,873,000, Ireland with US$ 1,316,000, and Spain with US$ 427,000.
Among the main exporting companies were Procesadora Laran SAC with sales of US$ 11,720,939, Consorcio de Productores de Fruta SA with US$ 10,583,378, Procesadora Torre Blanca with US$ 2,027,968, Sterling Perú SAC with US$ 1,751,868, Corporación Frutícola de Chincha SAC with US$ 1,264,521 and Agrícola Las Marías SAC with US$ 1,143,403, among others.
A decline in the frequency of online grocery orders drove a 1.2% year-over-year drop in total online sales to $95.8 billion in the U.S. online grocery market in 2023, according to the annual results of the Brick Meets Click/Mercatus Grocery Shopper Survey released Thursday, Supermarket News reports.
It’s the second year in a row that the order frequency of active monthly users (MAUs) declined, according to the report, which surveyed 21,000 shoppers in the U.S. That year-over-year contraction in online orders came in at 6% compared to the prior year, surpassing the 4% year-over-year decline in 2022, the report noted.
The decline in orders was exacerbated by a 300 basis-point increase to 34% in the number of MAUs who said they made only one online grocery purchase per month in 2023.
Despite the drop in online orders for the year, the base of MAUs rose 2% year over year. Shoppers appear to have largely settled on a receiving method with 70% saying they exclusively relied on either pickup, delivery, or ship-to-home, up 172 basis points from the previous year.
Pickup held steady as the most popular way of receiving online orders, growing its share of online sales by a modest 56 basis points to end the year at 46%. The report added that the expanded availability of delivery methods due to increased competition did not appear to help grow the receiving method, which experienced a sales decline of 0.9% for the year and captured 37% of the online sales market. Meanwhile, the ship-to-home method dropped 66 basis points to make up 17% of the market for the year.
“These annual results show that 2023 was very challenging for grocery retailing as higher prices chipped away at household purchasing power even though inflation has slowed considerably since its peak in 2022,” said David Bishop, partner at Brick Meets Click, in a statement. “Despite the challenges, pickup continues to prove its appeal to shoppers, even without the benefits of expanded availability and/or aggressive promotions that aided delivery in 2023.”
Mass merchandisers and hard discount grocers expanded their shares of the online grocery market in 2023 by 460 basis points to end the year with 45% due to strong MAU growth. The growth came at the expense of the supermarket format, which dropped 390 basis points to 29% for the year, a result of declining MAUs and order frequency.
Shoppers increasingly chose to place their online purchases through both mass merchandise and supermarket formats for the year as the cross-shopping rate increased by 150 basis points from the previous year. Nearly a third (30%) of shoppers purchased online groceries from both in the same month over the year, the report noted.
The repeat intent rate – the share of MAUs who are very likely to use the same service again – for the pickup and delivery methods of online purchases declined in 2023 by 63 basis points to 61%, a trend driven solely by a decline in repeat intent for grocery services, which fell 311 basis points to 54%. That’s compared to an increase in repeat intent for mass merchandise shoppers, which grew by 48 basis points to 66%.
“As Walmart grabs market share through its price leadership and omnichannel strategies, regional grocers find themselves in a precarious position. To remain competitive, they must intensify their efforts in improving customer engagement, offering tailored personalization, and building loyalty. This strategic shift is not just about weathering the storm of price inflation and intense competition, but about thriving in it,” said Mark Fairhurst, global chief growth officer at Mercatus, in a statement. “By providing a shopping experience that is both seamless and highly personalized, grocery retailers can retain their existing customer base and gradually attract a wider audience.”
Total online grocery spending declined 18 basis points to capture 12.5% of the market for the year. When considering just the pickup and delivery methods – most stores do not offer ship-to-home as a delivery method – the decline was a mere 6 basis points year over year and made up 10.4% of all grocery spending in 2023.
By Scott Fontes ALC Orlando
International logistics plays a crucial role in facilitating global trade and commerce by connecting businesses across continents. The Red Sea, a key maritime route, is currently experiencing significant disruptions that have led to impacts on international logistics. The ongoing geopolitical tensions in the region, coupled with environmental challenges, are reshaping the landscape of maritime transportation. Shipping times and costs have increased, adding significant delays and costs. Oil and gas prices have jumped following news of attacks, and shipping insurance premiums have nearly doubled for some carriers. Even if attacks stopped today, the effects will take a significant time to resolve.
The Red Sea has become a focal point for tensions and conflicts, influencing the safety and efficiency of shipping lanes. By January 2024, only 200,000 standard containers were passing through the waterway per day, compared with around 450,000 in December 2022. Strategic chokepoints, such as the Bab-el-Mandeb and the Suez Canal, are vital passages for vessels navigating between the Mediterranean and the Indian Ocean. Political instability in the surrounding areas can lead to heightened security concerns, affecting the smooth flow of goods. According to the AP, “The governments of Australia, Bahrain, Canada, Denmark, Germany, Netherlands, New Zealand, and South Korea joined the U.S. and U.K. in issuing a statement saying that while the aim is to de-escalate tensions and restore stability in the Red Sea, the allies won’t hesitate to defend lives and protect commerce in the critical waterway.” Instead of sailing through the Red Sea, ships traveling between Asia and Europe are now being re-routed around Africa and the Cape of Good Hope. Stakeholders in international logistics are closely monitoring these developments to assess potential disruptions to supply chains.
Furthermore, environmental factors like extreme temperatures, strong currents, occasional coral reefs, and weather events pose challenges to maritime operations in the Red Sea. Rising sea levels and changing weather patterns can impact navigation, port infrastructure, and overall logistics efficiency. Companies engaged in international trade must adapt to these environmental shifts, incorporating resilience measures into their logistical strategies.
As the Red Sea continues to play a pivotal role in global trade routes, a comprehensive understanding of both geopolitical and environmental dynamics is essential for the sustainable functioning of international logistics networks. By embracing innovation and responsible practices, we can ensure that the Red Sea remains a vital and sustainable lifeline for international trade in the years to come.
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Scott Fontes began working for the Allen Lund Company in 2023 as an international logistics specialist in the Orlando office. Scott joined the company with years of experience in transportation, most recently as a logistics manager for an OTR transportation company.
scott.fontes@allenlund.com
Mexican watermelon shipments hit 1.199 million tons at the end of November 2023, exceeding the annual totals for 2021 and 2022.
If this upward trend continues, it could be among the top 10 producing countries, according to Mexico’s Ministry of Agriculture and Rural Development.
The U.S. is the largest importer, showing the quality reputation obtained in terms of quality, health and safety, coupled with the effort and commitment of the producers, the ministry said.
Data from the Agri-Food and Fisheries Information Service (SIAP) indicate that the volume of the penultimate month of last year represents an increase of 0.4 and 1.8 percent compared to the 1.194 million tons and 1.177 million tons reported in 2021 and 2022, respectively.
Sonora was the largest producing state – of the 27 that cultivate the fruit – contributing 373,084 tons from January to November 2023.
Chihuahua follows, with 143,229 tons; then Jalisco, 102,795 tons; Veracruz, 94,096 tons; and Campeche, with 80,058 tons, the latter entity went from ninth position in 2022, with 36,985 tons, to fifth place.
On the other hand, the ministry indicated that the participation of watermelon amounts to 4.7 percent in national production and annual per capita consumption in the country is 3.5 kilograms.
The above because – according to specialists – watermelon is one of the healthiest fruits as it has water that makes it ideal against dehydration and is very refreshing in hot weather, it has vitamins A, B and C and helps strengthen the immune system.
The federal agency pointed out that, in addition, the greater volume of watermelon has allowed volumes exceeding 700,000 tons per year to be allocated abroad, where the United States is the largest importer, with an amount of $153 million in 2022.
Japan, Canada, Belize, Cuba, Colombia, and the UAE are also among the destination countries for Mexican watermelon, a fruit that belongs to the cucurbit family and is characterized by its red pulp and sweet flavor, he explained.
An 8 percent increase from 2023 is forecast for Mexican blueberry shipments, according to a new USDA report.
The U.S. is the top export market for Mexican blueberries, accounting for about 97% market share.
Mexico’s 2024 blueberry production is pegged at 81,000 metric tons, an increase because of sufficient water access and growing export demand, according to the report.
With more than 71,000 metric tons exported in 2022, Mexico ships more than 95 percent of their blueberries to the U.S. market.
The rate of production growth for Mexican blueberries is projected to be slower in 2024 than it was in 2023 due to competition from Peru, according to the USDA.
In 2023, Mexican blueberry production reached an estimated 74,800 metric tons, a 12 percent increase over the previous year due to production innovations and strong export demand.
Mexico’s blueberry industry has seen rapid growth in the past decade, with rising prices encouraging growers to expand production or switch from other crops to blueberries.
Mexican blueberry volume grew more than 80 percent between 2017 and 2022, with Mexico currently the world’s fifth-largest blueberry producer.
Mexico’s harvest use to start in early October, peaking between late April and early May. In contrast, for the 2024 harvest, producers have taken steps to delay the start of the harvest to early February in response to competition from Peru, which offers a similar product at lower prices during the October to January period, according to the USDA.
Producers are actively switching away from the biloxi blueberry variety to take advantage of the ongoing development of improved varieties that provide higher yields and better taste. 23 percent of the blueberry area is currently planted with the biloxi variety and 74 percent is planted with proprietary varieties.
The vast majority of Mexican blueberries are exported. Mexican blueberry exports totaled 71,509 metric tons in 2022, down about 2 percent compared to 2021.
Maersk plans to eliminate Panama Canal vessel transits on a north-south service between Oceania and the U.S. East Coast, citing the ongoing drought that has reduced ship transits and container carrying capacity through the waterway, Journal of Commerce reports.
The Copenhagen-based carrier said Wednesday that its OC1 service linking Australia and New Zealand with the ports of Philadelphia and Charleston will instead use a 50-mile rail service across the Isthmus of Panama to handle cargo between the Atlantic and Pacific.
As a result, the OC1 service will be broken into two loops, Maersk said. The Pacific loop will drop off northbound cargo at Balboa for the land bridge service via rail to Manzanillo, where the Atlantic loop will retrieve the cargo and resume waterborne service.
The carrier did not say whether the nearly 26-day transit time from New Zealand to Philadelphia would change due to the land bridge. It said that while northbound cargo will not be delayed, southbound cargo may see some delays.
Other Maersk services from Asia to the US East Coast will continue to use the Panama Canal.
Along with the Panama Canal, Maersk said the OC1 would omit Cartagena, Colombia, as a call. It also directed shippers to the option of its PANZ service between Oceania and the US West Coast.
Maersk said the decision to omit the Panama Canal crossing on OC1 was “based on current and projected water levels in Gatun Lake,” which provides the water to raise and lower vessels in the canal’s locks. As of Wednesday, the Panama Canal Authority (ACP) said Gatun Lake was at 81.6 feet, compared with a five-year average water level for January of 86.9 feet.
Low water levels have forced the ACP to only allow 24 ships of any size to transit the Canal daily, down from the 35 to 40 ships it could handle before the ongoing drought that has reduced Gatun’s water levels. Ships must also carry less cargo as the Canal is limiting the maximum depth of neo-Panamax vessels to 44 feet from 50 feet. Smaller Panamax vessels, such as the ones in the OC1 service, are restricted to a 39.5-foot depth versus the typical 45 feet.
In early December, ocean carriers in THE Alliance said they were preparing to divert east-west vessel services from the Panama Canal due to the potential for transits being reduced to as few as 18 by February. But with better-than-projected water levels on Gatun Lake, the ACP did not implement that further reduction.
By Charlie Fabricant, ALC Corporate
With the growth in awareness around climate change, the supply chain industry is taking significant strides to reduce greenhouse gas emissions while maintaining the crucial service of keeping our economy flowing. Many companies across all sectors, driven by altruism or differentiation, are incorporating ESG-focused improvements. In 2021, 73% of S&P 500 companies tied their executives’ compensation to ESG metrics. Governments are investigating additional ways to push organizations to decarbonize. One avenue that many regulators are exploring is requiring companies to publicly share their annual carbon emission data. Both California and the EU have already passed emission disclosure bills, and the SEC is expected to release U.S. wide regulations this Spring. With the transportation sector currently leading all business sectors in carbon emissions, ALC is developing low-carbon shipping programs to help our customers with their reduction and reporting goals.
To provide a very brief explanation of GHG (greenhouse gas) accounting, there are three “scopes” of emissions. Scope 1 and 2 cover direct (owned assets) and indirect (purchased utilities) emissions, which are largely controllable by reporting companies. Scope 3 includes more complex calculations from production to disposal, including all emissions associated with a manufacturer’s or retailer’s supply chain, a significant aspect of which is transportation. For example, if you were a car manufacturer, your scope 3 would include the emissions associated with the first metal being mined through the post consumer disposal and everything in between (excluding emissions captured in scope 1 and 2). The SEC regulation was originally proposed in 2022, but has been pushed back multiple times due to the difficulties associated with reporting scope 3 emissions. Due to the truckload market’s fractured nature, many shippers work with multiple transportation partners, further increasing the difficulty of consolidating this data.
So, now that I have made ESG seem scary, here’s the soothing part…In order to address environmental concerns, our company uses an EPA and CDP (Carbon Disclosure Project) based calculator which provides truckload emission data. In addition, we’re developing a ‘Green Carrier Base’, recruiting low-emission carriers for sustainable shipping needs who will have a reportable emission reduction when compared to traditional fleets. Investigations into alternative fuels, such as renewable diesel, compressed natural gas, and eventually electric charging, are also underway with the goal of setting up a fuel delivery program for interested carriers and shippers through our partner, one of the U.S.’s largest energy providers. We’re also partnering with a unique carbon offset company which prioritizes additionality and building local coalitions of small-businesses and community leaders to ensure long-term environmental and economic benefits. We all live together on the same planet, and reducing our carbon footprint should be important to us all. Reach out to me if you’d like to have a conversation.
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Charlie Fabricant graduated from Vanderbilt University in 2021 with a double major in Economics and Human & Organizational Development with a minor in Environmental Sustainability. He joined the Nashville office as an undergraduate intern in 2021 and became a transportation broker along with the company’s Environmental, Social, and Governance (ESG) coordinator. In 2024, he was promoted to ESG programs manager.
charlie.fabricant@allenlund.com
NEW YORK — Incisiv, a next-generation industry insights firm that helps retailers and brands navigate digital disruption, and Wynshop, the leading provider of digital commerce and fulfillment solutions for local store-based retailers, today revealed the findings from Grocery Doppio’s December 2023 Digital Grocery Performance Scorecard.
Grocery finished the year strong in December, with a 12.6% jump in overall sales, and 9% in digital sales, as compared with November.
This left grocers ‘mildly optimistic’ about business opportunities in 2024, with 57% reporting that they expect a better year in 2024 than they had in 2023. Here’s how they ranked their top business opportunities for 2024:
- launching/growing retail media: 81%
- scaling personalization: 76%
- increasing profitability: 64%
- improving price/promotion: 64%
For grocery shoppers, on the other hand, cost control and wellness are the biggest influencing factors to their immediate priorities. 83% of shoppers said they are focused on savings, discounts and promotions at this time, and 69% said they prefer easy-to-understand deals like “$2 off” and “2-for-the-price-of-1” rather than % discounts. Meanwhile, 67% plan to shop healthier foods in 2024, 23% intend to buy more organic produce, and 64% desire to dine together as a family more frequently.
The December 2023 performance scorecard is based on aggregated data from 2.3 million U.S. shopper orders, plus polling of 42,267 grocery shoppers and 4,081 grocery executives between January 1, 2022 and December 31, 2023.
More key findings from Grocery Doppio’s “December 2023 Digital Grocery Performance Scorecard” include:
- 74% of grocers expect to discount/promote the same amount or more in 2024 than they did in 2023.
- 86% of shoppers plan to buy both in-store and digitally in 2024.
- Grocery pickup increased by 3.4% in December, compared with November 2023. And 17% of shoppers will increase their use of pick-up services in 2024.
“Inflation has not abated, and shoppers remain focused on price going into 2024,” said Gaurav Pant, Chief Insights Officer of both Incisiv and Grocery Doppio. “As basket sizes and average price/item continue to grow from month to month, the pressure is on grocers to come up with the attractive promotions and discounts that shoppers desire.”
“Shoppers are looking for healthy options, cost saving opportunities, and satisfaction of other individual interests,” added Charlie Kaplan, Chief Revenue Officer at Wynshop. “To maintain customer loyalty and improve profitability in 2024, grocers need the ability to generate highly accurate and scalable personalized search results and recommendations in their digital channels.”
The December 2023 Digital Grocery Performance Scorecard is one of many resources available on Grocery Doppio. Grocery Doppio is a free, independent source of grocery insights and data designed to help grocers jumpstart, accelerate, and sustain digital growth.
Grocery Doppio brings together research-driven grocery content, fact-based observations, and industry expert perspectives, to deliver a monthly performance scorecard that identifies improvement opportunities for grocery retailers.
To download Grocery Doppio’s “December 2023 Digital Grocery Performance Scorecard,” click here.
About Incisiv
Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting, and the tools necessary to improve digital maturity, impact, and profitability. More information is available at www.incisiv.com.
About Wynshop
Wynshop is an ambitious team of digital innovators obsessed with a solitary mission—helping grocers and other local store-based retailers grow wildly successful online businesses. Its refreshingly easy-to-use digital commerce platform enables efficient in-house picking, reduces fulfillment costs, and gives retailers the ability to control every facet of their customers’ digital shopping experience. This results in a more personalized customer journey and amplified shopper loyalty.