KeHE Marks Year of Growth & Expansion in 2016
KeHE Distributors, LLC (KeHE) celebrates a year of growth and achievements in 2016. In addition to a rewarding first year as a Certified B Corp, the company advanced on its strategic growth plan with the acquisition of Monterrey Provision Company, the addition of a new distribution center in Colorado, and through various leadership initiatives.
“Our achievements in 2016 are a testament to our motto: Where KeHE Goes, Goodness Follows™,” said Brandon Barnholt, President and CEO, KeHE. “This has been a memorable year for KeHE, and we look forward to building on this momentum in the exciting year ahead.”
Certified B Corp Status
KeHE formally announced its B Corp certification at Natural Products Expo West 2016. Barnholt led a signing of The B Corp Declaration of Interdependence with representatives of the B Corp community. In October, the nonprofit B Lab named KeHE a B Corp “2016 Rookie of the Year” for its outstanding commitment to the movement: using business as a force for good.
Acquisition
In February, KeHE acquired Monterrey Provision Company, a San Diego-based distributor of fresh perimeter products. The Monterrey acquisition aligned two companies with complementary assets and skills, advancing on KeHE’s vision to expand its footprint in this cool growth category.
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Expansion
KeHE broadened its reach with the arrival of its 17th distribution center. Located in Aurora, Colorado, near Denver, this state-of-the-art 270,000-square-foot facility was built from the ground up to meet LEED Gold certification for energy-efficient practices. KeHE celebrated the opening of the site in August with a philanthropic activity that provided 1,000 boxes of food to area families in need.
Show Growth
KeHE experienced double-digit growth across its award-winning trade shows. The Natural Spring Show saw a 27 percent increase in attendance from 2015, and the Natural Fall Show saw 35 percent attendance growth since 2014. KeHE looks forward to welcoming suppliers and retailers to the Summer Selling Show in New Orleans on February 7-8, 2017.
New CFO
KeHE also expanded its leadership team with the appointment of Timothy J. Wiggins as Chief Financial Officer in July. In his role, Wiggins leads all aspects of KeHE’s finance function and strategic planning, as well as business unit and subsidiary performance.
Grocery Pundit Announces Top Trends for 2017
More digital connections and a speedier checkout process rank among the top trends for grocery shopping in 2017, says John Karolefski, veteran supermarket analyst and writer at GroceryStories.com. Karolefski also predicts a more diverse produce department, increased availability of meal kits, and better access to product information.
“The top trends for 2017 will result in improved loyalty to stores and more informed shoppers,” says Karolefski. “Expect a more enjoyable shopping experience.”
Karolefski’s top trends for 2017 are:
More Digital Engagement: Millennials are starting families and becoming major buyers of groceries. To maintain the loyalty of these shoppers, supermarket chains will ramp up their digital tactics. For example, grocers will outfit their stores with beacons, which are sensors embedded throughout a store’s shelves, signs and product displays. Beacons interact with smartphones using low-energy Bluetooth signals to provide coupons and other discounts. More grocers will promote their own mobile apps for shoppers to get discounts and specials. Meanwhile, online grocery ordering and delivery will grow as shoppers opt for this convenience.
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More Diverse Produce Departments: Shoppers will find more organic fruits and vegetables, as well as local produce. Meanwhile, the growing number of Hispanic-American shoppers will prompt grocers to stock such products as tomatillos and jicama. These trends will result in more diverse produce departments in 2017.
More Meal Kits: Grocery shoppers will be able to choose from a variety of “meal kits” that burst onto the scene with such startups as Plated, Blue Apron and Hello Fresh. Giant Eagle began selling its own meal kits this year, and more grocers will do the same in 2017. Meanwhile, manufacturers such as ConAgra and Campbell Soup have launched their own meal kits, and other food makers will follow.
More Access to Product Information: Nearly 30,000 grocery products will bear a new SmartLabel on packages by the end of 2017 to give consumers easy access to detailed information about what they are buying. Shoppers will be able to scan this sophisticated bar code in the store or do an online search to reach a landing page for information on ingredients and other attributes of a wide range of consumer packaged goods.
Prairie Farms Dairy and Swiss Valley Farms Announce Merger Agreement
Prairie Farms Dairy and Swiss Valley Farms have entered into a merger agreement. Both companies are farmer-owned dairy cooperatives and recognized leaders within the dairy industry. The combined entity will bring together two well-known brands and will expand sales opportunities for both cooperatives.
Under the terms of the agreement, Prairie Farms will merge the assets of Swiss Valley Farms into Prairie Farms Dairy, Inc. Assets include five manufacturing plants that produce cheese and whey powder located in: Luana, Iowa; Shullsburg and Mindoro in Wisconsin; Rochester and Faribault in Minnesota. Swiss Valley Farms CEO Chris Hoeger will continue to oversee the operation of the plants. The combined company will operate under the name Prairie Farms Dairy, Inc. The terms of the merger agreement must be approved by cooperative members from both companies.
“The merger with Swiss Valley was driven by our commitment to build value for our cooperative members and is consistent with our growth strategy. Swiss Valley’s contributions will allow us to diversify our product portfolio and expand into new markets,” said Ed Mullins, Executive Vice President and CEO of Prairie Farms.
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Chris Hoeger, Swiss Valley’s CEO, stated, “We are very excited to be joining forces with Prairie Farms. This merger offers numerous benefits for our cooperative members and is an ideal opportunity to bring together two industry leaders. We will leverage the strengths of both companies to offer a broader range of products and to enhance and expand relationships with customers.”
As Prairie Farms and Swiss Valley collaborate on pre-merger integration activities, their employees and customers can expect a business-as-usual environment. If approved, the deal is expected to close mid-2017.
