Archive For The “News” Category
by Legion Logistics, LLC
Florence, KY – Legion Logistics, one of the region’s fastest growing third-party logistics providers, announced recently that they placed #513 on the Inc. 5000 list. This is the third straight year Legion has appeared on the Inc. 5000 list, and this year, they are the #1 company for growth in both Kentucky and the Cincinnati Region.
“I remember counting down the days until we could be eligible to be considered for the Inc. 5000 list.” Antony Coutsoftides, CEO and co-founder, says of this honor, “But now we have been ranked three years in a row and I continue to dream of ways we can improve our ranking in the nation and within our industry.”
The Inc. 500 is an annual list that began in 1982 ranking private companies that are booking the biggest sales growth throughout the year in their region. For 34 years, the Inc. 5000 list, an expansion of the Inc. 500, has been introducing and honoring the fastest growing privately held companies in the U.S. and Legion has made the list three years in a row. This year, the magazine will formally congratulate all of the honorees at the Inc. 5000 Conference and Awards Ceremony in San Antonio, Texas in October.
Legion Logistics, LLC is a service disabled veteran-owned third-party logistics provider (3PL) based in Florence, Kentucky. What all those hyphens don’t tell you is that Legion is committed to exceptional customer service, fair dealings with trucking companies and an outstanding, veteran-friendly work environment. Founded in 2009, the Legion specializes in full truckload, less-than-truckload, government freight, hazardous materials and produce shipping. Learn more at jointhelegion.com.
Merchants in the Hunts Point Terminal Market continue talking about new and modern facilities, but in reality they are going nowhere. Realistically, construction of such a facility will never happen.
For example, look at the 20014 agreement signed by market officials and the city’s Economic Development Corporation, which renewed the wholesale market’s lease for seven years.
There also have been major improvements by large produce wholesalers such as Nathel & Nathel Inc., S. Katzman Produce Inc., and E. Armata Inc., which operates from 24.5 market units and has made large investments into its facilities.
These wholesale distributors are not wasting their monies. When you see companies spending this kind of money, you know Hunts Point isn’t going anywhere.
The historic Hunts Point neighborhood location in the South Bronx, provides an ideal location for the facility because it is close to New York City’s area metropolitan boroughs.
There has been talk about a new market in New York for more than a decade.
How would you get all of these merchants into the new market over time or at the same time? I don’t foresee any change.”
“There’s been a lot of talk about this market moving or rebuilding,” said Sheldon Nathel, vice president of Nathel & Nathel recently. “This has been going on for 13-14 years. A lot of the people on the market seem to be putting a lot more money into their stores lately. We followed suit. Who knows where this market will be in five years?”
Federal government monies are being actively pursed by Hunts Point leaders to upgrade the world’s largest fresh produce terminal. There are 22 million people in the Tri-State area that Hunts Point serves.
The facilities at Hunts Point are antiquated and everything from old plumbing to grid lock is constantly causing problems. There often are electrical lines reported exploding and transformers breaking for lack of capacity.
Supermarkets remain a “powerhouse in fresh,” despite an ever-growing variety of food shopping outlets, especially fresh produce, which resides as a “supermarket stronghold” among 68 percent of shoppers.
According to Anne-Marie Roerink, who reviewed the results of the Food Marketing Institute’s second annual Power of Produce report, Supercenters (16 percent) are the second most popular outlet for fresh produce purchases, followed next by warehouse clubs (5 percent).
Highlights of this year’s produce shopper study found nearly 25 percent of shoppers switch outlets when purchasing fresh produce versus the bulk of groceries, primarily to full-service supermarkets, farmers’ markets/produce stands and specialty organic stores.
Roerink, principal of 210 Analytics, which prepared the “mega trends” produce study, warned that younger generations are drawn to alternative channels. She sees this as “a red flag for traditional retailers, as losing the produce basket may result in losing additional spending in center store.”
Ringing up a whopping $61 billion in annual sales, fresh produce is in hot demand with no signs of a slow down. Powered by a 4 percent growth rate, the category is a lucrative and influential element for grocery baskets, which average nearly $30 more with fresh produce than one without.
Beyond price, the most successful incremental produce purchase drivers, per the Power of Produce study, include:
- Eye-catching displays, which are extremely influential
- Produce cross-merchandised in other parts of the store
- Impulse through ideation, including recipes, serving ideas and sampling
- Education/information, especially nutrition call-outs that are relevant to the audience
Notably, consumers are placing increased value on transparency – how and where the crop was grown – as evidenced by how support for the local farmers/economy overtook perceived freshness as the top reason for buying locally-grown. This sentiment also applies double-digit sales gains for organic fresh produce and an expressed need for “free-from” products. Still, organic remains a niche segment to date, according to the Power of Produce consumer research study, reflecting 8 percent of total produce sales, with usage skewing to the more affluent shoppers and families with children.
Organic produce sales topped $1 billion in the first quarter of 2016, according to the latest United Fresh Produce Association FreshFacts report.Tracking sales data from January through March, the report found that organic fresh produce sales in the first quarter totaled $1.1 billion, up 15% from year-ago levels. Sales gains were boosted by an increase in the number of retailers offering organic produce, according to the release.
The growth in organic produce sales and other data from the report were featured in the workshop “Who’s Buying Your Produce?” at the United Fresh 2016 convention in Chicago, according to a news release.
The FreshFacts report reveals that fresh produce accounts for 34 percent of total fresh sales in supermarkets, second only to meat. Total first-quarter sales of fresh produce were up 5 percent from year-ago levels, and volume was up 1 percent, according to the report.
The United Fresh workshop, to be led by Jen Campuzano and Matt Lally from Nielsen Perishables Group, will address shopping behaviors by generation, income and ethnicity, according to the release. The workshop presenters will also provide recommendations on market strategies for produce suppliers and retailers, according to the release.
The FreshFacts report, produced in partnership with the Nielsen Perishables Group and sponsored by Del Monte Fresh Produce, is available online and can be downloaded with no charge for United Fresh members and $50 for non-members, according to the release.
Beyond its examination of organic sales and trends for the top ten fruits and vegetables, the first quarter FreshFacts report explores consumer perceptions of local produce and generational demand, according to the release.
Even refrigerated carriers have their challenges hauling fresh produce, but it is an awesome mountain for rail entities, which is why there have been so many failures over the years.
Now we hear Railex LLC is ending service to the Southeast. although it claims it will be back one day.
The rail logistics transporter, based in Riverhead, NY, ceased operations in Jacksonville, Fla. August 13th with its refrigerated perishables..
Rumors of the closing had been circulating since July. The company apparently felt it was in its best interest to reassess the Southeast receiving location and close the Jacksonville location. Railex was unable to properly structure its operations at the Jacksonville facility that was too small. The company was operating with a short-term lease.
Railex is working with the Union Pacific and CSX railroads to find a service plan allowing timely deliveries to Southeastern customers through a different location. Railex is hoping to negotiate a service agreement within the coming months.
The Jacksonville location was intended to be a temporary solution to satisfy customers that had long demanded Southeastern service.
“For various reasons beyond our control, Railex could not run the traditional unit-type train service into Jacksonville,” Paul Esposito, executive vice president of corporate affairs said. “The transit times were two days longer than what we had planned and what our customers expected. Now, two years later, during the peak summer season, with transit variabilities as well as the decline in truck rates, we find it difficult to sustain any significant volume into the area.”
The carrier transported apples, carrots, onions, potatoes and wine to receivers via 64-foot refrigerated railcars.
Railex ships from Delano, CA, and Wallula, WA., and unloads and distributes at a Rotterdam, N.Y., refrigerated warehouse near Schenectady, N.Y.
The company opened the Jacksonville location in June 2014.
Rail companies have a history of basing their rates to a significant degree, on truck rates.
McDonald’s is talking up a milestone in providing children increased access to fruit through sliced apples served in Happy Meals.
Since 2004, the Oak Brook, Ill.-based foodservice operator reports serving more than two billion packages of sliced apples in Happy Meals, according to a news release.
In 2012, McDonald’s began serving the sliced apples as the default side item instead of french fries.
McDonald’s needed suppliers to develop the capacity to offer the product at restaurants nationwide. The success at McDonald’s led to fresh-cut apple availability at retail, schools and other quick-service restaurants, according to the release. McDonald’s has 14,000 locations in the U.S.
“As the first restaurant to offer fresh-cut apple packages as a side choice for children in April 2004, McDonald’s helped transform the children’s meal nutrition landscape by being the first to successfully create a market for convenient and easy, fresh-cut apple packs,” McDonald’s officials said in the release. “Today, all children in the U.S. under the age of 12 have only ever known a Happy Meal that included the option of apple slices.”
“This milestone is a marker of McDonald’s continuing to play an important role in every community and our ongoing efforts to help increase access to fruit and other nutritious food for children,” Steve Kerley, vice president and general manager of McDonald’s in the Philadelphia region, said in the release. “The decision to serve real apple slices with Happy Meals more than a decade ago helped make it easier for parents to ensure that their children are getting wholesome options.”
McDonald’s is the world’s largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries.
Founded in the United States in 1940, the company began as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948, they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.
By Growers Express
Salinas, CA — Fresh on the heels of a June announcement that Growers Express had acquired Misionero Vegetables of Gonzales, Calif., they announced this week that they have also acquired long time Green Giant Fresh supplier and partner—Curran’s of Biddeford, Maine.
Both of these recent acquisitions will bring increased production, processing and distribution to this ever-expanding fresh vegetable grower/shipper, most notably with the addition of Misionero in the West and Curran’s on the East Coast.
Curran’s, formerly of Saco, Maine, has been a valued supplier of premium Green Giant Fresh value-added products since 2006, and has had a successful relationship with Growers Express since 2009. Jamie Strachan, CEO Growers Express said, “Curran’s commitment to the Green Giant Fresh program and the success of the brand made this a desirable partnership for us as we continue to expand Growers Express.”
Curran’s recently expanded its operation into a new 55,000-square-foot facility in Biddeford, Maine in the fall of 2015. This new state-of-the-art facility allows for substantial expansion of products and capacity for continued growth.
“The acquisition of this ideally located tried and true partner is strategically significant for us,” said Strachan. Continuing, “from their New England location, we will be able to reach 40 percent of the population of the United
States and Canada, as well as reduce lead times which will better ensure product quality and shelf life upon delivery.”
“Growers’ mission has them evolving into a next generation healthful foods company,” said Bert Roberge, new director of sales for Growers Express, “and our shared values of integrity, relationships and teamwork are a perfect fit.” Already acting as an extension of the industry leader, this new acquisition helps poise Growers Express for continued customer service and growth into the future.
Roberge concluded, “We are thrilled to join forces with Growers; it’s an honor to represent—and officially join—a company with such focus on quality, exceptional customer service and proven industry leadership as their East Coast division.”
About Growers Express
Founded in 1987, Growers Express is comprised of eight produce growers whose farming practices and standards, combined with their generations of experience and passion for farming, have contributed to making Growers Express one of the nation’s industry-leading suppliers of premium fresh produce. Headquartered in Salinas Valley—known as the “salad bowl of the world”—our total year-round ground base exceeds 40,000 acres. Our continually evolving and innovative line includes 40+ commodities, value-added products, bunching items, meal solutions, fresh herbs and a new organic line in 2015 under the banner Farm Day Organic.
There is no substantiated evidence of human health risk from genetically engineered crops, according to a new study by the National Academy of Sciences, nor did it find “conclusive cause-and-effect evidence” of environmental problems.
However, NAS called resistance to current GE characteristics in crops a major agricultural problem.
Nearly 900 studies were examined by researchers on the effects of GE maize, soybean and cotton, along with public meetings and webinars.
“The committee focused on listening carefully and responding thoughtfully to members of the public who have concerns about GE crops and foods, as well as those who feel that there are great benefits to be had from GE crops,” said Fred Gould, committee chair and University Distinguished Professor of Entomology and co-director of the Genetic Engineering and Society Center at North Carolina State University.
“Studies with animals and research on the chemical composition of GE foods currently on the market reveal no differences that would implicate a higher risk to human health and safety than from eating their non-GE counterparts,” the 420-page report found. “Though long-term epidemiological studies have not directly addressed GE food consumption, available epidemiological data do not show associations between any disease or chronic conditions and the consumption of GE foods.”
On the environmental impact, NAS found the use of insect-resistant or herbicide-resistant crops did not reduce the diversity of plant and insect life on farms, though the panel said the long-term environmental changes cannot be assessed at this time.
NAS did not find the effects of GE crops on agriculture as completely beneficial.
“Evidence shows that in locations where insect-resistant crops were planted but resistance-management strategies were not followed, damaging levels of resistance evolved in some target insects.” Also, data on the commodity crops show no evidence that GE crops increased yields.
On the issue of regulation, NAS said the committee did not believe mandatory labeling of GE foods was necessary based on human health concerns, but the issue may be influenced by “value choices,” such as social issues.
The new report comes as leaders on the Senate Agriculture Committee are feverishly working on compromise legislation to build a federal solution to GE food labeling as many food companies fear Vermont’s mandatory labeling law that went into effect in July.
By Cargo DataThe Food Safety Modernization Act (FSMA) Final Rule for Sanitary Transportation for Human and Animal Food was released in late March 2016.
Industry leaders have been working with regulators to understand how enforcement will be approached. The following points will most likely characterize regulatory enforcement:
1) Enforcement for of the Sanitary Transportation requirements will begin 12 months from release of the Final Rule for large firms. This means enforcement will begin March 2017 for many large perishables handlers. Enforcement for smaller firms will begin March 2018.
2) Inspectors will not generally be interested in reviewing reams (or gigabytes!) of data related to in-transit temperatures, product accept/reject reports, or other detailed information. Instead:
3) Compliance will likely be considered satisfactory when subject firms can demonstrate they have developed and implemented systems which satisfy the requirements of FSMA.
For example: Since FSMA mandates that all authorized individuals in the supply chain (shippers, carriers, Receivers) must remove suspected adulterated or abused products from the supply chain, can each participant demonstrate its system supports such action?
Cargo Data recommends Lightning NFC as a vital element of your new FSMA compliance program. The Lightning NFC system is designed specifically to provide each participant in the cold chain with immediate temperature data review and automatically archives the data to the Cloud. Lightning NFC supports FSMA by making it easy to check cold chain integrity and to make informed decisions about product safety.
Lightning NFC temperature recorders can be ordered online.
Contact Cargo Data Corporation today to learn more about FSMA compliance and Lightning NFC at 800-338-8134 or information@cargodatacorp.com .
Associated Wholesale Grocers and Affiliated Foods Midwest Cooperative plan to merge their distribution businesses.
The transaction, which is subject to the approval of Affiliated Foods Midwest shareholders, is expected to close later this year, according to a news release.
“This exciting endeavor is exactly what we need to allow our retailers to compete, grow and be profitable,” Martin Arter, president and CEO of Affiliated Foods Midwest, said in the release.
Associated Wholesale Grocers currently supplies members that operate more than 3,000 stores in 30 states. Affiliated Foods Midwest supplies members that operate more than 800 stores in 15 states.
Barring any changes, members of both cooperatives will be members of Associated Wholesale Grocers when the deal is finalized.
“Expanding our collective distribution areas into several new adjoining states and adding over 800 new member stores will make our unified cooperatives stronger together, leveraging not only the additional scale and buying power but also employing and implementing the best practices of each that have been developed over the 80 to 90 years that our respective cooperatives have been in business,” David Smith, president and CEO of Associated Wholesale Grocers, said in the release.
About AWG
Associated Wholesale Grocers (AWG) is a retailer-owned cooperative serving retail member stores with a complete assortment of grocery, fresh meat, fresh produce, specialty foods, health care, and general merchandise items. AWG has an extensive distribution network and nine distribution centers which serve retail outlets in over 26 states. AWG provides its retail members, many of them family-owned businesses, with assistance in establishing a strategic position in their marketplace that builds upon their unique strengths. Our procurement and marketing departments are positioned to assist members in developing plans to excel in virtually any effort, and resources are structured to provide support services that allow members the best opportunity to win at retail.
AWG has been distributing success since 1924 and sales have grown steadily since then. (Click the history tab below to learn more.) Once again, 2015 was a record year for AWG with sales reaching $8.94 billon.
About AFWC
The AFWC story began in 1931 when a group of independent grocers near Plainview, Nebraska, joined together to form a wholesale buying group. Its founders built a business model in the cooperative spirit and continues the same business practices today – focusing on the independent grocer.
Affiliated Foods Midwest is a retailers’ cooperative based in Norfolk, Nebraska and Elwood, Kansas and serving the states of Oklahoma, Kansas, Colorado, Wyoming, Nebraska, Missouri, Illinois, Wisconsin, Iowa, South Dakota, North Dakota, Minnesota, and Michigan. Affiliated Foods Midwest built a new distribution center in Kenosha, Wisconsin in 2009.