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When it comes to “Fresh for Everyone,” Kroger is poised to significantly extend its reach. The Cincinnati-based supermarket chain entered a definitive agreement with Albertsons Cos., Oct. 14, to purchase the Boise, Idaho-based competitor for approximately $24.6 billion.
The merger will expand customer reach and improve proximity to deliver fresh and affordable food to approximately 85 million households with a premier omnichannel experience, according to a release.
Together, Albertsons and Kroger currently employ more than 710,000 associates and operate a total of 4,996 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers. The combination creates a “premier seamless ecosystem” across 48 states and the District of Columbia, providing customers with a “best-in-class shopping experience” across both stores and digital channels, said the release.
Amid a climate of rising food inflation, Kroger said its “long track record of lowering prices” in combination with efficiencies gained from the merger, will help the company to lower prices for customers. Kroger said it expects to reinvest approximately half a billion dollars of cost savings from synergies to reduce prices for customers, as well as invest an incremental $1.3 billion into Albertsons stores to enhance the customer experience.
“We are bringing together two purpose-driven organizations to deliver superior value to customers, associates, communities and shareholders,” said Rodney McMullen, Kroger chairman and CEO, who will continue serving as chairman and CEO of the combined company, in the release. “Albertsons Cos. brings a complementary footprint and operates in several parts of the country with very few or no Kroger stores. This merger advances our commitment to build a more equitable and sustainable food system by expanding our footprint into new geographies to serve more of America with fresh and affordable food and accelerates our position as a more compelling alternative to larger and non-union competitors.
“As a combined entity, we will be better positioned to advance Kroger’s successful go-to-market strategy by providing an incredible seamless shopping experience, expanding Our Brands portfolio, and delivering personalized value and savings,” McMullen continued. “We’ll also be able to further enhance technology and innovation, promote healthier lifestyles, extend our health care and pharmacy network and grow our alternative profit businesses. We believe this transaction will lead to faster and more profitable growth and generate greater returns for our shareholders.”
Albertsons agrees the merger will result in greater access to fresh food across the country.
“At Albertsons Cos., we are guided by an ambition to create customers for life,” said Vivek Sankaran, CEO of Albertsons. “Together with Kroger, our combined iconic banners will be able to provide customers with even more value and greater access to fresh food and essential pharmacy services. Given the similarities in the culture and values at Kroger and Albertsons Cos., I am confident that the combination will also have a positive impact on our associates and the communities we are proud to serve. We look forward to working together with Kroger to capture the compelling opportunities ahead.”
The transaction is expected to close in early 2024, subject to the receipt of required regulatory clearance and other customary closing conditions, including receipt of clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, according to the release.
By Dave Comber, ALC Madison
Most of us have enjoyed cranberries one way or another. Whether drinking one of the varieties of cranberry juice, as a salad topping, as an ingredient in a dessert, or as the cranberry sauce staple in the holiday season meal in the U.S. We have all at least tried cranberries in one form or another. Have you ever thought about all it takes to get cranberries from the farm to our households? The season to harvest cranberries is upon us now in full swing to get them to us for the holiday and the remainder of the year in all varieties, we enjoy them on a regular basis.
Cranberries are one of the few types of berries native to the U.S, with Wisconsin and Massachusetts producing more than 90% of the cranberries grown in the country. As most in the transportation industry are aware, shipping produce is no easy feat, and
transporting cranberries is no exception. Cranberries need to be handled with care.
The cranberry harvest begins in mid-September for most cranberry-producing states and runs through mid-November. Harvesting dry and wet cranberries are accomplished in two ways. Dry harvesting is a popular way for many small farmers as it doesn’t require as much coordination and machinery as wet harvesting. A device similar to a lawn mower pulls the berries off of the vines and into burlap sacks. While this is an easier method, a greater percentage of cranberries do get damaged. Wet harvesting is a method used by
large farms that work with major juice companies like Ocean Spray. Bogs are closed off and flooded with about 18 inches of water. Water reels are sent off on the water to stir up the plants and knock the berries off the vine. Cranberries have little pockets of air in them, so they float to the surface of the water. Nets and floating barricades are then used to move the berries to where they can be collected.
Before cranberries can be shipped they need to be carefully packaged for their journey. Cranberries have tougher skin than most other berries, but they still need to be handled with care. There are a couple of methods used to package them. They can be packaged in plastic bags with holes to vent out excess moisture, or in clamshell packaging. They then need to be placed in sturdier boxes that can support the weight of them being palletized. If shipping cranberries in bulk, they are put in plastic or fiberboard bulk bins to be placed in the truck.
Cranberries do not typically require any temperature regulation if they are being transported short distances. Frequently cranberries are transported only short distances from the farm to where they are being processed. However, if transporting cranberries in very cold or hot temperatures, or if shipping directly to stores at greater distances from the farm, then cranberries need to be transported in a refrigerated (reefer) trailer. Cranberries transported in a reefer should be kept at a temperature of 36 to 39 degrees Fahrenheit. Cranberries generally can be stored for up to three to four months if kept at this temperature. Outside of these temperatures, cranberries can become damaged. If cranberries are kept too warm they will deteriorate and begin to rot within a few hours. If cranberries get too cold, they will turn brown and the inside will become tough and rubbery. It’s important that the temperature remains at the proper temperature to avoid any damage upon delivery.
As we get closer to the holiday season in the U.S., we think about all the good food we are going to enjoy with family and friends. More than likely, we will have cranberries in one form or another at the holiday meals. Enjoy and remember all it took to get cranberries from the farm to your dinner table.
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Dave Comber is the manager of ALC Madison and has been with the Allen Lund Company for eight years. He worked for three years as the assistant manager, before being promoted to his current role. Comber brought with him over 20 years of management and customer service experience within the transportation industry from Northern Freight Service, Inc. and Schneider National, Inc. Comber attended Lawrence Univercity in Appleton, WI and earned a B.A. in Liberal Arts with a Major in History.
The worst congestion is plaguing U.S. seaports “since the age of containerization”, according to Logistics Management.
The publication credits backlogs of imports coming into the country, a shortage of equipment, and inland blocks as the main causes for this situation.
“U.S. seaports face the unprecedented situation where they’re now in their 17th straight month of record container import volume,” says Chris Jones, executive VP of industry and service at Descartes Datamyne.
“Consequently, continuous and shifting congestion and delays, and unpredictable lead times for importers has resulted”, Jones shared.
Presently, the ports of Los Angeles (POLA) and Long Beach (POLB) handle approximately 40% of U.S. imports. On the other hand, the port of New York and New Jersey processed 4,651,094 TEUs in 2021, ranking in third.
Consistent problems
Schedule reliability remains a significant problem for carriers, the outlet states. During 2021, West Coast ports reported long delays, with the East and Gulf coast ports now experiencing the same.
Meanwhile, seaports remain flooded with containers as labor negotiations on the West Coast are ongoing. Discussions have significantly affected shippers who remain concerned about slowdowns and potential strikes, Logistics Management reports.
Delaware River Valley seaports should reach an all-time high this fall and winter with fresh fruit and vegetable imports.
Peru and Chile are driving the key growth with increased volume and more varied production from growers.
Chilean imports at Philadelphia started 50 years ago.
The port’s reefer container cargo has grown by an average of 12 percent since 2012.
PhilaPort is the brand used by the Philadelphia Regional Port Authority, a Pennsylvania agency located in Philadelphia.
Nomenclature and statistical references for the Delaware River are complex because there are major port facilities in three neighboring states.
Thirty miles south of Philadelphia, the Port of Wilmington, Delaware, offers a huge and expanding fresh produce import trade. In Gloucester City, NJ, facing Pennsylvania from across the wide river, are massive dock and warehouse facilities owned by Holt Logistics Corp.
Countless businesses along the river and scattered throughout this sprawling metropolitan area coordinate with state and federal agencies to build their fruit business.
Family businesses owned by the Holt’s, Manfredi’s, Procacci’s and Kopke’s, and other families, have invested countless millions of dollars to boost port cold storage and other infrastructure.
Americold, Lineage, and other cold warehouses are also expanding to meet demand.
Manfredi Cos., Inc., of Kennett Square, PA offers extensive cold storage space, as well as transportation, logistics, and repacking services to all Delaware Valley docks.
Manfredi used to used imports from the area to fill seasonal gaps of domestic products, but now is importing the year-round. The company also notes offshore growers are making significant investments for volume growth for the next 15 years.
Summer citrus imports historically preceded a market void before Peru filled the market. Now for Manfredi, imported citrus is in its warehouse12 months a year, creating a different approach to warehouse planning.
Peruvian fruit production has been arriving earlier and earlier into the Delaware River, with the first ships of 2022 arriving in July. Peruvian grapes came into the market this September as a precursor to the Chilean deal.
Grapes and blueberries are Manfredi’s largest-volume Peruvian products. Avocados rank third. Peruvian citrus and mangos are also up for the cold storage.
Moroccan Clementines arrive in the fall and winter. For this season, Manfredi awaits Moroccan growers’ projections, although they are expected to be similar to last season.
Manfredi has recently been working with Brazilian mango growers to have a new program into the Delaware River. Refrigerated containers of Brazilian grapes began arriving here late last summer.
PhilaPort notes Brazil, South Africa’s Western Cape, North Africa, Spain, and Portugal, are all looking to increase volumes for delivery in the Delaware River.
PhilaPort on April 27 announced the maiden call of a new MSC service to the Port of Philadelphia. Running the route named “Indus 2” is the 6,730-TEU (20-foot Equivalent Unit) container vessel MSC Michaela.
Indus 2 embarks from Mundra, India. Subsequent calls are Nhava Sheva, India, and after the Suez Canal, there are stops in Gioia Tauro, Italy; Barcelona, Spain; Sines, Portugal; and then on to Halifax, ending at Philadelphia’s Packer Avenue Marine Terminal.
PhilaPort credits Packer Avenue Terminal operator, Holt Logistics, with doing a great job with the customer base and made Indus 2 a reality.
Indus 2 offers opportunities for cold chain produce volume increases from Mediterranean countries. These may include frozen Egyptian vegetables and Italian gourmet meats.
A big part of the U.S. onion shipments originate from Idaho and Oregon.
Idaho harvest onion acreage in 2021 was reported at 10,900 acres, the same as 2020 but up from 8,400 acres in 2018.
Oregon’s harvested onion acreage in 2021 was reported at 21,800 acres by the USDA, up 7% from 20,300 acres in 2020 and up 13% from 19,300 acres in 2018.
In 2021, Idaho onions accounted for 15% of all U.S. onion shipments reported by the USDA, while Oregon commanded a 13% share of all U.S. shipments.
Idaho onion shipments were reported in all months during 2021, but the heaviest shipments were reported from September through April.
Domestic truck shipments of Idaho onions totaled 11.24 million 50-pound bag equivalents in 2021, with export truck shipments reported at 478,000 bags.
Idaho’a piggyback onion shipments were reported at 4,000 50-pound bags, while rail shipments of Idaho onions totaled 1.98 million 50-pound bags.
Oregon’s domestic truck shipments of onions totaled 9 million bags in 2021, while export truck shipments of Oregon onions were reported at 904,000 bags. As with Idaho, Oregon onion suppliers shipped during every month of 2021, with the heaviest volume from September through April.
Oregon’s piggyback shipments of onions in 2021 totaled 70,000 bags, while rail shipments of Oregon onions tallied 1.87 million bags, according to the USDA.
The United States is by far the largest importer of fresh fruit and vegetables worldwide and imports continue to grow, according to this analysis by Fruit & Vegetable Facts. Including in the first half of this year. In 2021, the United States imported 21.5 million tons of fresh fruit and vegetables. Germany is the 2nd largest importer worldwide with a quantity of about 9 million tons. In the first half of this year, imports from the United States grew by 3%.
More than half of the imports come from neighboring Mexico. In the first half of this year, however, imports from this country lagged slightly behind those in the first half of last year. The top 3 of imports from Mexico consists of tomatoes, peppers and avocados.
Other important suppliers to the United States are Guatemala (especially bananas), Costa Rica (pineapples and bananas), Canada (cucumbers, tomatoes and peppers) and Ecuador (especially
bananas).
Imports from Peru and Chile
Peru and Chile are respectively the 5th and 7th suppliers of fresh fruit and vegetables to the United States. Imports from Peru continue to grow. This year in the first half the amount was 18% more than last year and will exceed the 1 million ton mark on an annual basis.
Grapes and onions are the main products imported from Peru. Blueberries take third place. Last year, for the first time, they exceeded 100,000 tons. Asparagus, avocados, bananas and mandarins are the other main imports from Peru.
Imports from Chile seemed to have passed their peak, but in the first half of this year they still grew by more than 10%. Grapes are by far the most important product. Until a few years ago, some 20,000 tons of peppers were imported from the Netherlands, but last year that was only 1,400 tons. Onions (6,100 tons) and beetroot (5,300 tons) were more important last year.
Exports
The United States is also a major exporter. Annually it exports about 6 million tons. Exports are decreasing with mainly the export of home grown products. The re-export was increasing, but stagnated in the first half of the year. The re-export mainly concerns bananas to Canada. Canada is also by far the most important customer for the export of home-grown products in the United States. Mexico is number two and far behind Korea, Japan, Taiwan and Hong Kong. The Netherlands and the United Kingdom follow. This mainly concerns sweet potatoes.
ATHENS, GA – With significantly reduced global warming potential (GWP), new-generation refrigerant R-452A will become the standard for new Carrier Transicold transport refrigeration units in North America beginning later this year, helping customers improve sustainability profiles and achieve regulatory compliance.
“Carrier Transicold truck and trailer refrigeration units have been qualified for R‑452A since 2017, and it has been available as a customer-specified option for several years,” said Bill Maddox, Senior Manager, Product Management, Carrier Transicold. “R‑452A is already standard with some of our newer units, and we’re pleased to expand this standardization to the broader array of Carrier Transicold products, effectively halving the refrigerant GWP of our transport refrigeration offerings.”
Beginning in October, R-452A with a GWP of 2,140, will become the standard refrigerant for all Carrier Transicold models that currently use R-404A, which has a GWP of 3,922.
The timing of the transition will help California customers placing orders for 2023. The California Air Resources Board (CARB) this year approved a measure requiring all new transport refrigeration units placed into service in 2023 to use a refrigerant with a GWP of less than 2,200.
In 2025, Canada will require refrigerants with a GWP of less than 2,200 in new transport refrigeration units, to reduce greenhouse gas emissions in accordance with the Kigali Agreement of the Montreal Protocol.
Previously, there was a significant cost differential between the new and traditional refrigerants, however over the last several years that has diminished with changing demand and refrigerant production trends, helping to encourage adoption of the more sustainable R-452A.
Maddox added some customers may consider switching refrigerants for units already in service, noting that with relative ease, Carrier Transicold customers can transition newer existing equipment from R-404A to R-452A. Unlike some competitive systems that require replacement of a thermal expansion valve when converting, late-model Carrier Transicold systems – those with an electronic expansion valve – simply require a software upgrade along with purging the R-404A and replacing it with R-452A. On Carrier Transicold truck units and older trailer units that use a mechanical expansion valve, the valve will require a manual adjustment or, in some cases, replacement based on the age of the model.
Standardizing on lower GWP refrigerants is part of Carrier’s commitment to reducing its customers’ carbon footprint by more than one gigaton, while also achieving carbon neutral operations by 2030, as outlined in its bold Environmental, Social and Governance (ESG) Goals.
For more information about R-452A for transport refrigeration applications, turn to the experts within Carrier Transicold’s North America dealer network.
About Carrier Transicold
Carrier Transicold helps improve transport and shipping of temperature-controlled cargoes with a complete line of equipment and services for refrigerated transport and cold chain visibility. For more than 50 years, Carrier Transicold has been an industry leader, providing customers around the world with advanced, energy-efficient and environmentally sustainable container refrigeration systems and generator sets, direct-drive and diesel truck units, and trailer refrigeration systems. Carrier Transicold is a part of Carrier Global Corporation.
As inflation remains and fresh produce prices increase, consumer habits have been changing. In July 2022, fresh produce sales were up 4.2 percent, but volume sales were down 4.8 percent, compared to July 2021.
“Inflation, COVID and consumer mobility continue to change shopping and consumption patterns,” said Joe Watson, VP, Retail, Foodservice & Wholesale for IFPA, in a report by 210 analytics.
“The consumer reactions to the current environment combined with supply side volatility are keeping all of us on our toes to understand the latest trends and quickly pivot accordingly,” he added.
In July, inflation was up 15.3 percent for grocery and 12.6 percent for perishables, so on the whole, fresh produce prices were up from last year, at 8.5 percent level on a per-unit basis and 9.5 percent on a per-pound basis.
In addition, the price per unit across all foods and beverages in the IRI-measured multi-outlet stores accelerated further to an increase of 13.3 percent in the five weeks ending July 31st, 2022, versus a year ago.
Moreover, fresh produce sales reached $7.7 billion, surpassing the record set the prior year by 4.2 percent. Fresh fruit added $163 million in sales and vegetables added $147 million when compared to July 2021.
Gains were achieved in many different ways. Avocados, peaches, nectarines and plums had very high inflation, while pineapples and apples had below-average inflation, but robust demand pushed their performances into the top 10 in absolute dollar growth in July.
The fresh share of the produce business has continued to rise steadily and while summer is a top season for fresh produce sales, July 2022 shows that consumers are not switching out of fresh produce because of inflationary concerns.
However, overall, fresh produce pound sales trailed behind year ago levels all throughout 2021 and continue to do so thus far in 2022. In July, pound sales were down 4.8 percent year-on-year.
“Volume sales were a mix with increases for berries and pineapples but down results for all other top 10 sellers,” said Jonna Parker, Team Lead Fresh at IRI.
Berries continued to be the fruit category’s best seller in July. However, unlike in the month of May, where berry sales continued to be more than double that of melons, Parker said: “the gap with the number two, melons, was by far not as big as we’ve seen.”
“In part this has to do with below-average inflation, but we also saw cherries come on strong and mixed fruit moving back in the top 10 sellers due to the Fourth of July sales spike,” she added.
On the whole, compared to 2019, pre-pandemic, prices across all foods and beverages were up 25.2 percent. Dollars remained 17.7 percent ahead and pounds stayed just above 2019 levels by 0.7 percent. Therefore, despite experiencing some volume pressure in the early months of 2022, fruit pulled even with 2019 levels on much better prices in July.
Considering the outlook for fresh produce, Parker commented: “Back-to-school shopping is in full swing and that brings about many healthy produce snacking campaigns at retailers around the country in addition to the final weeks of grilling season.”
A new Green Giant poll shows broccoli remains America’s favorite vegetable in 2022.
The Green Giant brand polled over 5,000 Americans for its annual ‘Favorite Veggie’ open-ended survey to determine consumers’ favorite vegetables.
Key survey findings include:
- Broccoli Takes the Crown (Again): Broccoli is the favorite vegetable in 29 states. Runners up (in order of popularity) are corn, carrots, potatoes and asparagus.
- Flipped on Favorites: More than half of the states (54%) swapped their favorite vegetable pick in 2022 including Iowa – which no longer chose corn as the favorite, but instead selected broccoli this year.
- Corn Continues to Grow: Despite Iowa’s rebuff of corn, 11 states selected corn as their favorite veggie in 2022. A 37% increase in popularity from 2021.
- Kids Crave Veggies: Contrary to popular belief, more than two thirds of parents surveyed (68%) say their kids enjoy eating vegetables.
Survey Data Compilation: 5,321 American consumers ages 18-94 agreed to take an online survey naming their favorite vegetable. The survey was conducted from 4/27/22 through 5/9/2022 and the users were recruited by a Suzy poll.
About Green Giant:
Green Giant® has been been in the vegetable business over 100 years.
Most recently, the Green Giant brand’s launch of its convenient and award-winning Veggie Swap-Ins® line, which includes Green Giant Riced Veggies, Green Giant Veggie Tots®, Green Giant Mashed Cauliflower and Green Giant Veggie Spirals®, has reinvigorated the frozen vegetable category.
Columbian avocado exports to the U.S. soared by 270% for the 2021-2022 season, the Columbia Avocado Board (CAB) recently announced.
The data was provided by the Hass Avocado Board who tracks shipments and sales of Hass avocados from all growing regions.
HAB and other member associations, including CAB, have collectively spent hundreds of millions of dollars promoting avocados in the U.S. in the last decade. The heavy promotions have led to yearly growth and Colombian growers have successfully met that rise in demand with nearly 300 avocado orchards across over 23,228 acres completing the necessary certifications to ship product to the U.S.
Colombia has produced and distributed avocados for decades, however, the growth and popularity of Colombia Avocados has expanded due to access to U.S. market starting in 2018 along with expanding country infrastructure improvements. The 2021-2022 season ended with its largest shipment totals on record shipping over 24 million pounds.