Archive For The “News” Category
(The purveyor of this website has written off and on for decades about railroads hauling produce. More specifically, stories about how the rails often lacked an understanding of perishables transportation, as well as not making it a priority. If the following lawsuit has merit this could prove to be another example of the risks involved in transporting perishable fruits and vegetables by rail.)
A multi-million dollar federal lawsuit against BNSF Railway Co., blaming the railroad for the failure of the refrigerated rail service for fresh produce has been filed by Steven Lawson, former president and CEO of Cold Train, and Mike Lerner, former managing member of the company. Both claim they had to shut down their rail service for fresh produce because BNSF failed to meet its promise for 72-hour delivery times.
Seeking $1 million in damages, the case was filed in federal court in Spokane, WA recently.
The lawuit alleges that the 72-hour “on-time percentage” steadily dropped from 92% in August 2013 to 3% in April 2014 because BNSF was favoring oil and coal over fresh produce in its scheduling. This resulted in Cold Train losing most of its fresh produce business, including apples, onions, pears, potatoes, carrots and cherries, which was more than 70% of the company’s business, the complaint alleges.
“The shutdown of Cold Train was caused by a significant slowdown in BNSF’s service schedules on its northern corridor line beginning in the fall of 2013 because of increased rail congestion as a result of BNSF hauling larger volumes of oil and coal from the Northern Plains region,” according to the April 7 news release.
A spokeswoman for the railroad said as of April 8 BNSF had not been served with the complaint and therefore its officials could not comment on specific allegations.
“But any suggestion that BNSF would intentionally seek to cause harm to any customer runs completely contrary to how BNSF conducts business,” BNSF communications director Amy Casas said.
“BNSF did experience well documented service issues following unprecedented demand levels and historic winter weather events beginning late in 2013, but we worked to remedy those situations and regularly communicated with our customers throughout the period so that they could anticipate when service would improve and plan accordingly.”
Cold Train shipped approximately 300 containers a month in 2011, according to the release. By 2013 it was shipping 700 per month with a goal of 1,000 per month by the end of that year. BNSF required the Cold Train to acquire a minimum of 111 refrigerated containers.
“BNSF also required the Cold Train to ship a minimum of 95% of the Cold Train’s entire container movements with BNSF, effectively prohibiting the Cold Train from using other carriers,” according to the news release.
By May 2012, Cold Train had 175 containers in service with another 100 on order for delivery in January 2013. Cold Train continued to purchase and lease containers, and by September 2013, the company had over 400 refrigerated shipping containers in service.
“In March 2014, representatives of Cold Train and Federated Railways Inc. met with BNSF representatives in Fort Worth to discuss the Cold Train’s business and its future with BNSF. At the meeting, BNSF continued to encourage Cold Train and Federated to proceed with the sale. Immediately after the meeting, Federated provided Cold Train a $1.25 million capital infusion based solely on that meeting, and announced that it was acquiring Cold Train,” according to the news release.
Ultimately Federated withdrew its offer to buy Cold Train. Lerner and Lawson contend they had to “walk away with nothing” from a business that had been worth more than $30 million before April 2014.
Pushed by national promotions and a 25 percent increase in distribution, Ambrosia apples are riding a retail wave all the way to the cash register. Over the past 13 weeks, a record 14,022 supermarkets put Ambrosia on the shelves for consumers. As a result, Nielsen data shows Ambrosia ranked No. 9 in total dollars among all apple varieties during this period, and it had the strongest growth of any apple in the top 10 nationally.
Ambrosia has broken into a new level,” Steve Lutz, vice president of marketing for CMI, said in a press release. “The biggest challenge for any club variety apple is to make the jump from being a niche item to a year-round item. The sales data show that Ambrosia have bridged the gap to becoming a ‘must have’ apple for retailers.”
With a large national crop, apple prices and retail shelf prices have been lower throughout the entire 2014-15 season. Over the most recent 13-week period from November through January, Nielsen scan data shows that total U.S. apple dollars increased less than 1 percent, while volume increased only slightly by 2.3 percent.
In contrast, during this same period Ambrosia apple sales skyrocketed and dollars jumped 19 percent. The increase in Ambrosia sales led performance of the top 10 apple varieties during the period. Honeycrisp dollars increased by 15 percent, followed by Pink Lady (up 7 percent) and Granny Smith (up 2 percent). All other apple varieties in the top 10 declined in year-over-year sales during the period.
“It’s just really gratifying to see consumers and retailers alike discover Ambrosia,” said Lutz. “The sales success speaks for itself.”
by The Georgia Pecan Growers Association
TIFTON, Ga. — The Georgia Pecan Growers Association is partnering with Schwinn Bicycles, a brand of Dorel Industries, for the biggest cross-promotional partnership in the history of Georgia Pecans. This alliance begins April 1, 2015 and runs through September 30, 2015 with monthly giveaways of Schwinn bicycles, helmets, locks and Georgia pecans.
The Georgia Pecans/Schwinn promotion kicks off in April, also known as National Pecan Month, and it will continue into May, which is also National Bike Month. Monthly prize drawings will occur all summer long and into September as well.
In addition, the partners will be represented together at the Produce Marketing Association (PMA) Convention in October 2015.
Consumers can enter the Georgia Pecans/Schwinn Sweepstakes by visiting www.georgiapecan.org beginning April 1, 2015.
“Pecans are one of the healthiest products at the grocery store today,” said Brad Ellis, president of the Georgia Pecan Growers Association. “Pecans are high in antioxidants and are heart healthy. We promote a healthy lifestyle, and that’s why aligning Georgia Pecans with Schwinn is a fantastic fit. With Georgia being the #1 pecan state in the U.S. and Schwinn being the #1 bike brand, this partnership couples two tremendous brands.”
“Good health is all about exercise and nutrition, and Schwinn bicycles provide the exercise, while Georgia Pecans provide the good-for-you nutrition solution,” said Milissa Rick, Global Director of Consumer Activation, Schwinn. “Bicycling is a sport for people of all ages – young, old, male, female, serious athletes, and weekend warriors.”
The Georgia Pecans/Schwinn Sweepstakes will be promoted in a variety of ways, including on video screens in New York’s Times Square. Support will include print advertising, on-pack stickers on pecan packages, social media and Schwinn cross-promotional support. The promotion will also be heavily supported by the Georgia Grown campaign, which represents the statewide interests of Georgia agriculture.
ABOUT THE GEORGIA PECAN GROWERS ASSOCIATION The Georgia Pecan Growers Association represents hundreds of pecan growers in the top pecan state in the U.S. Previous marketing initiatives from the Association have focused on research and recipe development, among other areas.
ABOUT SCHWINN Founded in 1895, Schwinn is an American icon, building some of the best-known and best-loved bicycles of all time. With a continued dedication to quality, forever synonymous with the Schwinn name, America’s most famous bicycle brand looks forward to providing another century of innovation and performance to people of all ages. Information about Schwinn bicycles is available at www.SchwinnBikes.com. Be sure to follow Schwinn on Twitter at @RideSchwinn and like Schwinn on Facebook at Ride Schwinn
Opal apples is experiencing a record-breaking fifth season, reaching new highs in volume as well as the number of consumers reached. Opal made its first appearance this season in November and is expected to run through April.
Opal achieved a high record in weekly volume after delivering over 1 million pounds of fresh Opals to retailers across the United States and Canada in the seven-day shipping period ending March 8. Season-to-date, the average weekly volume is running 28 percent higher compared to last season. Also, the number of retailers in the Opal program has reached record highs with 85 percent of the top retailers in the U.S. and Canada carrying Opals for their consumers. In addition, Opal has seen a jump in consumer reach after executing a robust marketing campaign reaching over 1.1 million people.
“We’re having a great Opal season with tremendous momentum,” Keith Mathews, chief executive officer of FirstFruits Marketing of Washington, said in a press release. “Consumers are telling us how much they love the apple, retailers are having great pull-throughs and consequently, we’re experiencing record shipments. We’re so honored to have solid retail relationships to help us sell through nearly 1 million pounds of Opals in one week. Without their support, we could not get Opals to consumers.”
Grown in Washington by Broetje Orchards, Opal apples are sold exclusively in North America by FirstFruits Marketing. The company said this cross between Topaz and Golden Delicious stands out on the shelf with its yellow color and great taste. While Opal is non-GMO it does naturally resists browning after slicing.
Chiquita Brands International Inc. is still moving containers through the Port of Gulfport even after relocating its shipping operations to the Port of New Orleans.
The (Biloxi, Miss.) Sun Herald reports congestion in New Orleans is keeping the Charlotte, N.C.-based Chiquita operating in the Mississippi port.
After a 40-year absence, Chiquita in October returned to the Port of New Orleans.
Chiquita had planned to end its containerized goods handling at Gulfport by December 31, but Gulfport tenant Crowley Maritime Corp. Inc., Jacksonville, Fla., was still shipping northbound Chiquita produce containers into the port, according to the Sun Herald.
Gulfport director said the two ports are working to “alleviate congestion issues at the port of New Orleans,” according to the report.
Chiquita’s transition to New Orleans remains on schedule and Chiquita was expected to continue moving some cargo through Gulfport while the New Orleans port makes improvements, a New Orleans port official said in the report.
For Chiquita, the New Orleans port planned to invest $2.2 million in improvements in refrigerated-container electrical infrastructure and at a distribution and ripening facility leased to Chiquita. Imported bananas provide huge volume from Chiquita throughout North America.
Would you believe kale being served with a Big Mac?
Hum. Fast food giant McDonald’s is looking to add items with kale to its menu.
McDonald’s sources aren’t confirming the reports from dozens of media outlets, but it does appear that the trendy green may make its way to the Golden Arches.
Most of the hype stems from Janney Capital Markets analyst Mark Kalinowski, who cited an unnamed source: “Possibilities include kale for use in salads, or perhaps a kale smoothie.”
With the Oakbrook, Ill.-based chain losing market share in recent years, McDonald’s officials have said publicly that they’re open to anything to turn things around, including rethinking menu choices.
McDonald’s has noted it isn’t blind to Americans’ demand for more nutritious items, and kale has been one of the hottest trend items in U.S. restaurants, in general, over the past couple of years.
Kale-producing farms have nearly tripled from 2007 to 2012, according to U.S. Department of Agriculture data, and kale is featured on foodservice menus a whopping 400 percent more often today than it did in 2010.
However, McDonald’s seemed among the most unlikely candidates to add kale after a January McDonald’s TV ad campaign specifically vowed the chain would never serve kale, in fact chastising vegetarians and featuring footage of McDonald’s signature sandwich, the Big Mac.
“You can’t get juiciness like this from soy or quinoa,” a narrator says in the ad. “This is not Greek yogurt. Nor will that ever be kale.”
After several years of planning, Abasto’s San Antonio Wholesale Produce Market plans to officially open for business this spring.
“The first phase that’s about to be finished consists of two buildings, each with 30 cold room equipped warehouse units, right at the front of the project facing Loop 410,” said Fernando Narvaez, sales director of McAllen, Texas-based Abasto Properties LLC.
Phase two is scheduled for 2016 and includes another 120 units, with cold room, freezer and dry storage. Designs include 3,100 square feet of main floor with cold room capacity for 156 pallets, or about seven truck loads of produce.
Each unit has an additional 900 square feet of office space on a second floor, plus 450 square feet of covered front dock with two access doors. “On the back of the warehouses are three dock-high doors and temperature controlled space for loading and unloading trucks,” Narvaez said.
“We designed the layout with cold-chain management in mind as well as warehouse certifications key to the produce industry.” Phase one of the market is about half full, Narvaez said. The market is planned to not only serve the San Antonio market, but also be a consolidation center for importers from Mexico and companies that plan to export to Mexico
New York City Mayor Bill de Blasio announced plans to invest $150 million to revitalize the Hunts Point Terminal Market in the Bronx, NY, over 12 years, “fortifying a vital aspect of our infrastructure: our food supply,” he said Thursday, March 5, at an Association for a Better New York event.
de Blasio said the plans will modernize the buildings and infrastructure that are currently at Hunts Point and open up new space for small businesses. “More than that, this is a bold vision, with a major financial commitment that will make the site resilient and sustainable, improving New York’s readiness for natural disasters like Superstorm Sandy,” he said.
“It’s hard to overstate how important this facility is for our city,” the mayor noted.
The Hunts Point Terminal Market occupies 329 acres and supports 115 private wholesalers that employ over 8,000 people. “These are good, decent-paying jobs for New Yorkers at every education level,” de Blasio said. “Our plan protects those jobs and positions the site to create many more jobs for New Yorkers in the future.”
The plan will also include dedicated space to better link New Yorkers to food that is grown and produced in upstate New York, strengthening the city’s partnership with upstate communities, farms and businesses.
Mail-order beef specialist Omaha Steaks is getting into the vegetable business. Omaha, Neb.-based Omaha Steaks is now selling vegetables grown by Huron, Ohio-based specialty and heirloom vegetable grower-shipper The Chef’s Garden, according to an Omaha Steaks news release. Five different vegetable mixes are now available at OmahaSteaks.com:
- Roasting, 11 pounds, $99.99, featuring mixed potatoes, young mixed carrot, young mixed beets, celery root and mixed fall radish;
- Nature’s Color, 10 pounds, $99.99, featuring mixed baby carrot, mixed fall radish, demi cucumber and celery root;
- Beauty, 7 pounds, $165, featuring garlic root, garlic shoot, micro popcorn shoot, crystal lettuce quartet, petite salad sensation, pea tendrils, mixed flowers, mixed potatoes and cucumber blooms;
- Roots & Shoots, 9 pounds, $99.99, featuring mixed potatoes, garlic shoots, celery root and baby leeks; and
- Juicing, 9 pounds, $99.99, featuring young mixed beets, young mixed carrots, celery root, mixed fall radish, petite salad sensation and petite herbal sensation.
Omaha Steaks plans to eventually also sell the mixes through its mail-order catalog and at its more than 70 retail locations in the U.S. “Bringing these beautiful restaurant-quality vegetables to our customers aligns perfectly with Omaha Steaks’ commitment to creating and providing wholesome and delicious food that brings people together,” Todd Simon, Omaha Steaks’ senior vice president and family owner, said in the release.
Just four years after it delivered its first load, Scout Logistics Corporation – whose name and principles are inspired by the characters Scout and Atticus Finch in the classic novel To Kill A Mockingbird – has won recognition as one of Canada’s Best Managed Companies. This prestigious award highlights the company’s tremendous growth and affirms its fresh, market-leading approach to transportation management.
“We operate on ‘Scout’s honour,’” says Lorne Swartz, founder and president of the Toronto, ON based company, which has 33 employees, almost double its workforce in 2011. “We do what we say we’re going to do, and we treat our customers, carrier partners and team members fairly, honestly and with integrity. Not only is it the right thing to do but we believe it’s also essential to the success of our business.”
Sponsored by Deloitte, CIBC, National Post, Queen’s School of Business and MacKay CEO Forums, the Best Managed award recognizes Canadian owned and managed companies with revenues over $10 million for sustained growth, financial performance, management practices and the efforts of the entire organization. 2014 winners of the Canada’s Best Managed Companies award, along with the Gold Standard winners, Requalified and Platinum Club members will be honoured at a gala in Toronto on March 31, 2015. On the same date, the symposium will address leading-edge business issues that are key to the success of today’s business leaders.
“I would like to congratulate Scout Logistics Corporation and its entire workforce. Achieving this standard of excellence takes a united effort from a dedicated team,” said Peter Brown, National Co-Leader of Canada’s Best Managed Companies Program and Senior Practice Partner at Deloitte.
“Scout Logistics invests in their team to build up a strong and stable company,” says Mike Runia, National Co-Leader of Canada’s Best Managed Companies Program and Ontario Managing Partner at Deloitte. “Best Managed companies are home grown companies making smart investments to achieve above average returns.”
Scout has built a strong team by giving team members industry-leading compensation, access to a company bonus pool, and a dynamic work environment. There are no strict dress codes or cubicles at Scout Logistics, only a state-of-the-art workplace with an onsite gym, full kitchen and foot-thumping music that adds a fun vibe to the workday.
The management team at Scout also believes in investing in innovation. It developed proprietary systems for monitoring loads, carriers and sales – innovations that put the company ahead of its competition. Recently Scout upgraded its dispatch system to include cutting-edge tracking technology, which enables tracking of each and every truck via cell towers across Canada and the United States, even when GPS units are not enabled. This ensures 100 per cent transparency throughout the supply chain.
“Earning a spot among Canada’s Best Managed Companies confirms that we are taking the right approach and making smart investments in our people, partners and processes,” says Swartz.
About Scout Logistics
Scout Logistics is one of Canada’s largest non-asset based transportation providers. Founded in 2011, Scout has built a reputation for providing customers with best-in-class customer service, superior on-time delivery, and transformative technological applications. Scout transports over 500 million pounds of refrigerated goods each year, and has quadrupled its revenue since inception. To learn more about Scout, visit www.scoutlogistics.com.