2024 – Page 91

How J.C. Penney is using AI and machine learning in its supply chain

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As a retailer with a more than 120-year history, J.C. Penney has navigated plenty of shifts in the retail space.

Today, the department store chain is focused on protecting its future since emerging from bankruptcy under new ownership in 2020. It’s in the midst of a plan to invest more than $1 billion into its business by fiscal year 2025.

One of the central pillars of the retailer’s long-term improvement strategy is implementing more advanced technology, including artificial intelligence and machine learning, into its supply chain operations.

Chief Information Officer Sharmeelee Bala, who joined J.C. Penney in January 2022, has been a key leader behind the company’s technology upgrade strategy, noting that such initiatives are now being looked at as enablers for the company rather than afterthoughts.

Sharmeelee Bala, chief information officer, J.C. Penney.

Courtesy of J.C. Penney

“J.C. Penney has been very strategic in ways to invest and how to invest and prioritize the investments in technology, especially,” Bala told Supply Chain Dive in an interview. She added that the company is focused on improving customer and employee experience through its technology investments.

On the customer side, Bala says J.C. Penney has begun implementing newer tools, some homegrown and others from third parties, across pricing and assortment planning, among other functions.

“We’ve also got investments where we decide the node from where we send, whether it was shipped from store or do we need to send it from a distribution center or a fulfillment center, which is closer to our customer, so that they can get it faster,” Bala said.

At the distribution center level, J.C. Penney has turned to new warehouse management systems and automation technology to improve operations. For example, earlier this year, the retailer installed SDI Element Logic’s Joey Pouch sorting system at a facility in Reno, Nevada, in an effort to improve inventory management and purchase delivery times.

Bala said the turn to automation is meant to eliminate an overabundance of time-consuming manual processes and handoffs that were prone to error. She added that automation technology is meant to help augment employees’ work to make their jobs easier.

“Like induction and picking and everything is much more modern and automated. You still have people doing it,” Bala said. “You still have somebody who is having to connect the dots, but it takes that manual handoff out of the picture, and it takes time out of the picture.”

Since implementing automation technology at the Reno distribution center, Bala said speed and productivity have improved at the facility, as has the time it takes to deliver to customers.

You still have somebody who is having to connect the dots, but it takes that manual handoff out of the picture, and it takes time out of the picture.

Sharmeelee Bala

Chief Information Officer at J.C. Penney.

Distribution center upgrades are just part of the equation for Bala, who said one of her key challenges is upgrading a massive legacy supply chain made up of multiple systems that perform similar functions.

“I do have infrastructure that is great and stable, but they are pretty old,” Bala said. “So how do I modernize [and] at the same time invest in a way that when I modernize it, I’m also getting efficiency and not just focus on modernizing?”

Although Bala says J.C. Penney is not going after “every shiny object” available, the retailer is prioritizing AI and machine learning-enabled technology. To ensure the success of such systems, Bala has prioritized building up the retailer’s enterprise data platform. Much of that work involves consolidating and cleaning data from across the business to ensure every department is speaking the same language and working together, according to Bala.

Beyond implementing improved data hygiene practices, Bala and her team are also building a data platform that can adjust as new information comes in, allowing AI models to become more effective and provide the benefits the company needs to compete in an increasingly competitive retail arena.

“When I look at the total cost to serve, because that’s something that as a CIO, I have to keep looking at my ecosystem and say, ‘How do I make it more efficient for me to serve my business partner?’” Bala said. “How do I look at it as ensuring that we are building for the future and not just for today?”

This story was first published in our Operations Weekly newsletter. Sign up here.

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Google achieves plastic-free packaging ahead of 2025 with help of new paper

Dive Brief:

Google says it has met its 2025 goal to make all of the packaging for its newly launched hardware — including Pixel, Fitbit and Nest devices — without plastic, according to an announcement Tuesday. It set the goal in October 2020, when 94% of its product packaging was already free of plastic.
Today, the packaging is made with a paper that is three times stronger and 70% more stretchable than the paper it previously used. It developed this new paper in partnership with Veritiv and Shandong Kaili Specialty Paper Co.
This announcement comes on the heels of the tech giant’s release of its 2024 sustainability report last month. It showed that packaging for new Google products launched and manufactured in 2023 was 99% free of plastic. Additionally, Pixel 8 and Pixel 8 Pro phones were introduced in October with entirely plastic-free packaging.

Dive Insight:

The new paper used for the hardware packaging is lighter than materials used in previous packaging, thus helping to lower its transportation carbon footprint, according to the company. The internal packaging that holds the devices is made from a new molded fiber formula that is partially derived from recycled newspaper.

Google decided to make this paper available, via its supplier, to anyone interested in using it, a company spokesperson said via email. The tech company hopes “it gives others a starting point for their unique designs and accelerates the transition towards more sustainable packaging solutions,” the spokesperson said.

In addition, the boxes now have a peelable closure label to easily show if someone tampered with the product. This feature is an evolution of the previous tear strip, but it is “more elegant,” the spokesperson said. The label is composed of two layers of Kaili Glory Paper and two layers of adhesive.

“Tamper evidence and an improved consumer experience were design goals, but our focus didn’t stray from delivering a plastic-free solution. A label that can be disposed along with the box without the hassle to separate different components was top of mind for our team,” the spokesperson said.

The new, uncoated materials were developed to make recycling easier for the consumer, Google said in the announcement. But the company said it paid attention to overall design, not just materials, when considering packaging recyclability. It cites internal research showing that packaging’s look and feel influences whether consumers recycle it and whether recycling centers accept it. Based on that intel, the company designed its new packaging “with a visually speckled texture and an uncoated surface that [not] only does it look great, but looks recyclable,” the announcement says.

“Some fiber-based solutions resemble plastic due to their sophisticated construction and are sometimes mistakenly sent to landfill. Our internal studies show that consumers recognize the visually speckled texture of our new materials as recyclable and are more likely to recycle it,” the spokesperson said.

In June, Google released its plastic-free packaging design guide as an open resource meant to help accelerate progress on sustainability across industries. The guide heavily discusses fiber alternatives to plastic, including molded fiber and corrugated paper.

In its recent sustainability report, the tech company described challenges to achieving plastic-free packaging. It found that viable alternatives to plastic often do not exist in certain packaging categories. The report also noted that accelerating the transition away from plastics requires innovation both for materials and supply chains.

Competitors have been advancing their own plastic reduction goals as well. A year ago, Apple said it was on track to phase out plastic in its primary and secondary product packaging by 2025; it also described rolling out fiber-based packaging, including its first entirely fiber packaging for the Apple Watch Series 9. And Lenovo reported in its newly released ESG report that it’s on track to use 50% less single-use plastic for smartphone packaging by early 2026, while aiming for 90% of PC products’ plastic packaging to be made from recycled materials in the same timeframe.

Across the company, Google’s most recent sustainability report showed both gains and slips. In 2023, its total greenhouse gas emissions increased 13% year over year and 48% compared with the 2019 baseline. That’s contrary to goals to reduce its scope 1, 2 and 3 emissions by 50% by 2030. The increase is “primarily driven by increased data center energy consumption and supply chain emissions,” according to the report.

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BRF takes pet food business off the block

SÃO PAULO — BRF S.A. announced on Nov. 13 it has abandoned plans to sell its pet food business after exploring competitive sale opportunities earlier this year.

The company partnered with Banco Santander in February to advise on the sale of its pet food operations but has ultimately decided to maintain the business.

“As the third-ranked player in the pet food market in Brazil and leader in super premium natural pet feed, the company will continue to drive growth in this segment by increasing distribution through specialized channel, strengthening brands strategy by segment and channel, consolidating integration synergies, and advancing the export expansion strategy,” the company stated.

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Will McDonald’s blockbuster $5 deal spell trouble for QSR rivals?

As we enter the summer season, the restaurant industry finds itself in the midst of a familiar battle: discount wars. In less than a week, McDonald’s is unleashing its month-long $5 meal deal promotion, the fast-food giant’s latest attempt to woo customers back and turn up the heat on this summer blockbuster. Will McDonald’s promo be enough to triumph and win back value-conscious guests?

Setting the stage: Economic landmines

After what looked to be three months of progress, economic anxiety across America shot up 5 percentage points, from 31% in April to 36% in May. Meanwhile, the 20% of consumers who say they are “spending as usual” is the lowest level we’ve seen in over a year.

This isn’t just a restaurant problem – consumers are pulling back across the board. From our May data among 1,000 consumers 18+ years old, here is the percentage who say they participated in each activity sometime in the past 6 months:

67% dine-in at restaurants (-9 percentage points vs. Q1 average)

40% go to the movies (-8 points)

63% go shopping at a retailer (-8 points)

17% fly on a plane (-7 points)

42% get hair done (-6 points)

It’s no secret that restaurants are hurting. As price increases continue to frustrate consumers, the impact on restaurant visit frequency is increasingly being felt as time goes on. More than half of restaurant customers (52%) say that restaurant prices have gone up too much, while only one third (34%) feel that their most recent restaurant experience was “definitely worth it.” That math just doesn’t work.

If you’re familiar with my data, you may have noticed that the 52% of restaurant customers who are frustrated with price is down significantly from Q4 last year. While this may seem like a good thing, when paired with the visitation data, it implies that those who are most frustrated have simply given up. Not good news at all.

Delivery isn’t faring better than dine-in; 62% agree/strongly agree that “getting restaurant food delivered is so expensive, it’s just not worth it anymore” and 19% have even made a conscious decision to use delivery less often over just the past 3 months.

With economic uncertainty on the rise, prices up, and many past their breaking points, consumers are non-shockingly looking for lower costing food options and trading down in a variety of ways. Where are those in search of low-cost food alternatives turning? Some 31% say grocery store delis/food service areas, and 25% say convenience stores.

We’ve seen this movie before

When operators take price over and over, it drives guests to lower-cost options. Then operators are forced to deal back prices to compete. It’s a tale as old as time in the restaurant industry. I often try to remind people that while discounting drives a short-term boost, more often than not it also drives disloyalty. Over-discounting creates customers that only buy on deals, or worse, those that are ready to jump ship to the next deal a competitor offers.

While customers are searching for value, the idea of value is defined in terms far greater than just cheap food. When the base of the value equation is fortified through experience, discounting can definitely actually prove to be successful at winning long-term customer loyalty.

Chili’s $10.99 deal thrived by tailoring to price-conscious customers by offering a lower price than you can get at QSR, while maintaining the degree of hospitality and experience that you would expect from Chili’s. While price is obviously a key factor, customers want to trust that their order will be right, the food will be good, and that the experience as a whole will be worth it.

So what will the sequel look like?

McDonald’s’ latest promotion focuses on emphasizing value, meeting customers where they are at and reaffirming the principles that McDonald’s stands for.

“Great value and affordability have always been a hallmark of McDonald’s brand, and all three legs of the stool are coming together to deliver that at a time when our customers really need it,” McDonald’s franchise owner John Palmaccio said in a recent CBS News interview.

Burger fast-food restaurants are already the most common option for trading down. With McDonald’s’ $5 meal deal only days away, and 34% of recent fast-food goers planning to take advantage, are other chains in for a rough July?

But we wanted to go farther to predict which chains might be impacted when McDonald’s launches. Of more than 23 QSR restaurants that consumers have visited in the past 30 days, here are the top nine who are at risk of losing market share to McDonalds’ $5 meal deal (the percentage of past month brand users that report they “definitely will take advantage of the McDonald’s $5 Deal”):

46% Hardee’s

44% Krispy Kreme Donuts

43% Pizza Hut

42% Sonic

40% Jimmy John’s

37% Subway

37% Wendy’s

37% Domino’s

36% Dunkin’

36% McDonald’s

Guests of those top 5 major QSR chains are more likely to take advantage of the McDonald’s value promo than McDonalds’ own recent customers!

Lest we forget: For every trend, there is a countertrend. Five brands are more insulated with fewer of their guests being interested in the new McDonald’s deal. They have more loyal, cult-level customers. These brands who appear the most resilient haven’t won their guest loyalty with discounting, they’ve won it with consistency and high-quality experience:

31% Chick-fil-A

26% McAlister’s

25% Jack-in-the-Box

24% Carl’s Jr.

15% In-N-Out

And that’s a wrap

Brands aren’t going to win long-term by making their prices the lowest out there; they’re going to win by providing a better and more consistence experience for a competitive, affordable price.

If you’re an operator, it’s easy to get thrust into the constant race to the bottom of discounting. Not all brands can afford to discount in the way that McDonald’s does. But that’s alright! Any brand can double down on experience and use that to uphold the value equation, instead of discounting.

While price is crucial, at the end of the day, customers seek value and just want it to feel like the money they spent was worth it.

AUTHOR BIO

Lisa W. Miller has over 30 years of consumer insights and innovation experience collecting nearly a million consumer interviews qualitatively and quantitively. Lisa conveys excitement, hope and real hands-on tools to revamp organizational goals and growth. She strategically transforms companies and improves bottom-line results by using the “DNA” of the Business of JOY.

Lisa is a 3-time EFFIE Winner for Advertising Effectiveness, recipient of the David Ogilvy Research Award, and is an expert in consumer insights.

Lisa is the author of the book, The Business of JOY, based on over 55,000 consumer interviews and countless hours spent interviewing business leaders and frontline employees. It gives a 360-degree view of the pandemic — translating insights into an actionable framework for the future. Lisa’s data became a leading indicator of economic recovery. According to Lisa, “Economic recovery and growth begin when JOY is greater than Fear.”

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Who’s News in Catering for April 27, 2024

Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, the premier Arizona desert resort located at the base of the McDowell Mountains, welcomes Jesse McDannell as Executive Chef. In his role, McDannell will oversee the dining experiences at the resort as it completes a $110 million renovation and transformation to a Grand Hyatt property. Originally from New York, McDannell travelled around the world as a child as his father was an Army Officer. His first job in the kitchen was as a short order cook at the West Point Golf Course at the Military Academy at West Point. After graduating Summa Cum Laude with a Bachelor’s Degree in Culinary Arts from the Restaurant School at Walnut Hill College, McDannell began working with Hyatt in July 2006 as a Corporate Management Trainee at Grand Hyatt DFW in Texas. He was quickly promoted to Chef Tournant at the Grand Hyatt San Antonio followed by Executive Sous Chef at Grand Hyatt Buckhead in Atlanta, Ga. McDannell then went on to his firs Executive Chef appointment at Hyatt Escala Lodge in Park City, Utah. McDannell has also served as Executive Chef at the Grand Hyatt Buckhead in Atlanta as well as the opening Executive Chef at the Grand Hyatt SFO, which was recognized during his tenure as the Top Airport Hotel in North America by SkyTraxx.

La Concha Key West, the restored Grand Old Dame of Key West, proudly announces Lilian Garapan as Director of Food & Beverage, leading the management and successful operations of all food and beverage outlets, processes and events, including in the new Tropicado crafted cocktail bar, restaurant, Perla, where Cuban cuisine is delightfully reimagined and in El Dom Coffee Shop. A Philippines native, Garapan has embraced a career path within the tourism industry driven by her enthusiasm for hospitality. Possessing an optimistic demeanor, she consistently endeavors to exceed expectations in guest service, showcasing her dedicated and bright personality. Earning a bachelor’s degree in Tourism and Travel Services Management from Bohol Island State University, Garapan has more than eight years of experience in customer service, sales, marketing and retail operations. Possessing excellent communication and organizational insight, she excels in motivating and empowering her team to achieve optimal performance. Her comprehensive understanding of culinary sales and marketing, payroll management, budgeting, guest relations, and hotel and retail operations emphasize her capability to navigate the industry, while maintaining a focus on revenue generation. Garapan most recently served as Assistant Food and Beverage Manager at Highgate in Key West. Prior, Garapan held the position of Head of Housekeeping at Marriott Hotels in Key West.

Hot Off the Presses

Proof of the Pudding, Atlanta’s largest caterer, has signed a long-term lease for a purposefully designed 10,000-square-foot event venue on the top floor of 8West, a 200,000-square-foot office and mixed-use project located at 889 Howell Road NW in West Midtown, perched at the intersection of Eighth Street and Georgia Tech’s campus. The new venue, perfect for corporate events and social gatherings, is expected to host Atlanta’s movers and shakers with culinary innovation, elevated hospitality and service, and an outlook that will inspire big ideas. The event space has a guest capacity of approximately 260 seated and 350 reception style. Innovative, custom menus highlight Proof of the Pudding’s scratch kitchen and culinary and mixology excellence, and its first-class hospitality service further enhances the guest experience. The new space is set to open its doors for company events, weddings, galas and private gatherings by early fall 2024.

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In NYC, a New Breed of Steakhouse Ups the Cocktail Ante

There’s a new steakhouse in New York. It’s called — in rather too-on-the-nose fashion — Bourbon Steak, and it’s part of a chain of seven such restaurants from noted San Francisco chef Michael Mina. Bourbon Steak is one example of a new breed of restaurant. Some call them modern steakhouses and others term them contemporary steakhouses. The general idea is that they all take the classic steakhouse model and give it an upgrade in terms of style and culinary touches.

That said, any customer who takes a single glance at the Bourbon Steak menu would make no mistake as to the kind of eating establishment they were in. There are the oysters and the shrimp cocktail; the Caesar and wedge salads; and the various cuts of steak, from ribeye to porterhouse to New York strip.

However, if that menu-browsing patron began with the cocktail list, there might be some confusion. The one at Bourbon Steak begins with a Bee’s Knees and continues with a Pisco Punch and Sherry Cobbler. There’s an original mezcal concoction named Fire Walk With Me, after the David Lynch film. There is the expected Martini, but it’s made with sherry; and the predictable Old Fashioned, but its base is Rare Character Single Barrel Bourbon, an expensive sourced whiskey.

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Other new and newish steakhouses that have similarly ambitious cocktail programs include Hawksmoor, a chain born in London in 2006 that opened a New York branch in 2021 and a Chicago location this year; Cote, the Korean steakhouse group first opened by Simon Kim in Manhattan in 2017; the reimagined Brooklyn landmark Gage & Tollner; Quality Meats, part of Alan and Michael Stillman’s empires of restaurants; and The Press Club Grill, which opened in Herald Square last year.

Photo Courtesy of Bourbon Steak https://www.bourbonsteaknyc.com

Incubators of Cocktail Culture

From the repeal of Prohibition until the turn of the 21st century, old-school steakhouses were dependable incubators of cocktail culture, even as other types of restaurants gave up on mixed drinks. But the array of adult refreshments you could get at a steakhouse was limited, usually including Martinis, Manhattans, Old Fashioneds, and a handful of other classics.

In the last decade or so, however, the trajectories of the modern cocktail revival and the modern steakhouse movement have aligned. The result is perhaps the first new American steakhouses in a century and a half to serve the kind of drinks that steak eaters of pre-Prohibition times tossed back.

“There’d never been anyone in my role before,” says Michael Lay, who was brought in as the Mina Group’s beverage director five years ago. “No one was overseeing the beverages in the company as a whole. Many of the cocktail menus were left to run themselves. I’ve spent five years trying to create harmony and synergy for the restaurants,” he adds.

It was a role Lay happily took on. That’s because — and this is the case with most modern cocktail bartenders — he didn’t need to be coaxed into a false affection for classic steakhouses. “I absolutely love old-school steakhouses,” he says. “That is my favorite dining experience.”

“We stay true to the classic steakhouse aesthetic, but with a slightly modernized version of the drinks.”

Like Lay, the beverage directors at modern steakhouses approach their assignment with a healthy respect for the genre’s history. They start by tackling the key steakhouse cocktails and elevating them slightly.

“I wanted to harken to the steakhouse classics — Martinis, Manhattans, Old Fashioneds — all those things that you want to start your meal with,” says Max Green, spirits and bar director of the Hospitality Department, a restaurant group that includes The Press Club Grill. “The first menu was classics.” The question that followed that decision, according to Green, was, “How do we make the drinks our own?”

The answer came in small touches. The Press Club Grill’s Gibson, called Page Turner, has house-made onions and a house-made honey tincture. The punched-up Old Fashioned, called City Desk, is made with a mix of Scotch and brandy.

Photo Courtesy of Press Club Grill https://www.pressclubgrill.com

The same philosophy prevails at Quality Meats, where creative director (formerly bar director) Bryan Schneider, supervises the drinks menu. The list is only seven drinks long, each cocktail a recognizable classic. But every item bears a twist that draws on modern mixology techniques. The Nitro Negroni is on tap and the Cherry Cola Manhattan is made with bourbon, sherry, and a cola bitters blend.

“We stay true to the classic steakhouse aesthetic, but with a slightly modernized version of the drinks,” says Schneider.

A big part of the modern cocktail makeover at new steakhouses is batched drinks. At old-school joints, every Martini is made to order. At the newer places, the house Martini is, more likely than not, batched, pre-chilled, and ready to pour.

“Freezer Martinis are more acceptable now,” says Green, who has four or five freezer cocktails at The Press Club Grill. “You can really build cocktails that have small measures. With that, there’s a lot more depth of flavor. That’s the cocktail-bar influence.”

Ask the bar directors at these restaurants how the steakhouse bar reached this point of maturity and the first name that comes up is Hawksmoor. The London restaurant had a fully formed cocktail program at its inception, when Nick Strangeway, one of the biggest names in the London cocktail revival, was in charge. It’s been that way ever since.

“I thought that was a great example of what a modern steakhouse could be,” says Lay.

There’s a certain irony to that admiration, however, since, according to Liam Davy, Hawksmoor’s head of bars, the original London locations took most of their signals from American steakhouses.

“We were doing it in London, which had zero experience of quality drinks in restaurants or steakhouses until the 2010s,” says Davy. “We took a lot of inspiration from the U.S. when we started in the U.K.”

“Walking into a steakhouse, I always want a Martini to start. I think it’s important to honor those traditions.”

Davy says that opening Hawksmoor’s first U.S. location, in Manhattan, presented a particular challenge when it came to the bar. Unlike London patrons, who required some guidance through the cocktail list, American diners tend to belly up to the bar with an order already on their lips.

“Day one, people came in and knew exactly what they wanted,” says Davy. “New Yorkers know what they like and we need to deliver it.” Davy’s job, as he sees it, is to augment those existing preferences with a solid list of unusual and original cocktails. “We get a lot of people from column A and some from column B — people who want new cocktails and people who just want a dry Martini.”

Modern steakhouse bar directors share a lot with both types of customer. They are, of course, schooled in modern mixology and are advocates of original drinks. But when they visit a steakhouse they don’t work at, they most resemble the sort of hidebound traditionalists who have been frequenting American red-meat joints for decades.

“Walking into a steakhouse, I always want a Martini to start,” says Sondre Kasin, director of bars at Cote. “I think it’s important to honor those traditions.”

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Canada rail stoppage poised to disrupt North American agriculture

Stoppage would halt US spring wheat shipments to west coast

21 August 2024

4 minute read

A looming stoppage of freight railway operations across Canada would disrupt North America’s agricultural supply chain, snarling shipments of everything from wheat to fertiliser and meat, reported Reuters.

Unless last-minute labour agreements are reached, both Canadian National Railway and Canadian Pacific Kansas City, an effective duopoly, will shut nearly all freight rail services in Canada for the first time at midnight on Thursday.

Canada is the world’s top exporter of canola, used in food and biofuel, and of potash fertilizer, as well as the No. 3 wheat exporter. While a lockout or strike would directly involve 10,000 Canadian employees of the railroads, not those in the US, it would have knock-on effects on the U.S. economy due to the countries’ criss-crossing rail lines.

Nearly three dozen North American agriculture groups, in a joint letter to the US and Canadian governments on Monday, urged action to avoid a stoppage.

“The impact of a strike would be particularly severe on bulk commodity exporters in both Canada and the United States as trucking is not a viable option for many agricultural shippers,” the letter said, citing large volumes and vast distances.

The rail operators have said lockouts will begin on Thursday. The Teamsters union, which is demanding better wages, benefits, and crew scheduling, has issued a Thursday strike notice to CPKC.

The stoppage will halt shipments of US spring wheat from Minnesota, North Dakota and South Dakota to the Pacific Northwest for export, said Max Fisher, chief economist at the National Grain and Feed Association.

CPKC ships grain from the Dakotas and Minnesota to west-coast export terminals via Canada, according to the US government.

US farmers still have nearly two-thirds of the spring-wheat crop to harvest, the US Department of Agriculture said on Monday. Soy, corn and canola harvests are still a few weeks away in North America.

Canada’s prairie elevator network would run out of storage capacity within 10 days of a stoppage, said Mark Hemmes, head of Quorum Corp, which monitors Canadian grain handling and transportation.

Shippers are also concerned about US corn products heading to Canada. In 2023, Canada was the top destination for US ethanol exports, and almost three-quarters traveled by rail, according to USDA.

“We just can’t have the railroads not operating,” Fisher said.

The US exported $28.2 billion of agricultural products last year to Canada, its third-largest destination for agricultural exports behind China and Mexico, USDA said.

The US imported $40.1 billion of Canadian agricultural products last year, making Canada the second-largest origin of US agricultural imports behind Mexico, the agency said.

About 85% of the 13 million metric tons of US potash imports last year came from Canada, nearly all of which crossed by rail, according to USDA.

‘No good time’

US corn farmers apply fertilisers in fall and spring, but potash imports from Canada are consistent throughout the year, said Krista Swanson, chief economist for the National Corn Growers Association.

“Given constant trade flows and the importance of the trade relationship between the two nations, there is no good time for this to occur,” Swanson said.

The railways move an average of 69,000 tons of fertilizer product per day, equivalent to four to five trains, said Fertilizer Canada spokesperson Kayla FitzPatrick. Disruptions will cost the industry C$55 million ($40.34 million) to C$63 million per day in lost revenue, not including logistical and operational costs, she said.

Canadian meat producers warned that a rail stoppage would result in millions of dollars in losses and waste.

The Canadian Meat Council and Canadian Pork Council said some processing plants expect to lose up to C$3 million a week, and noted these facilities would be forced to shut down within seven to 10 days of a rail stoppage. Once the railways resume service, it would take two to five weeks for plants to return to normal capacity.

There is concern that the movement of Ontario soybeans to export markets, primarily Japan, will completely stop just before the harvest, said Crosby Devitt, CEO of Grain Farmers of Ontario.

With crop-shipment delays lasting beyond a week, companies must pay contract penalties and demurrage for ships waiting for grain to arrive, piling significant cost onto the industry, said Wade Sobkowich, executive director of the Western Grain Elevator Association.

“We’ll be playing catch-up for the rest of the harvest year, till next July,” he said.

($1 = 1.3634 Canadian dollars)

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Small business: Meat magnet | MEAT+POULTRY

Phil Schmidt started skinning deer and cleaning up a local meat market at the age of 17. Twenty years later the young man emerged knowing everything from how to properly clean the facility, how to run the sausage kitchen, how to cut meats and had a head loaded with management knowledge.

He came away with one other idea: building and running his own meat plant.

Phil and his wife Vicki talked about it and then followed through on the concept of leasing space at a mall near Greenville, Wis., to create this enterprise which would bear the name The Meat Block.

“It took everything we had to do it, but we started out with five employees, 1,500 square feet of retail store space and 1,900 more square feet for production and one smokehouse,” Phil recalled. “We didn’t pay ourselves when we were trying to get things going. We lived on credit cards, which we had never done before. Those days were all about having a meat business that shared our family values.”

Steady growth

That was the year of 2010. Within four years, the couple and their business partner Clyde Weycker and his wife Hollie, saw their new specialty meat shop grow to 15 employees, 2,700 square feet of retail space, a 5,700-square-foot production area, two smokehouses and a catering kitchen. In 2014, the Schmidts, understanding that many families were just too busy or unable to cook, opened a section of their retail store under the banner “The Chef.” In this sector they featured heat-and-serve meals to go, offering everything from pizzas, soups, homemade pot pies and even shredded meats that customers could take home, heat and eat. They also offered salads, sides, sauces and salsas. They even have a local bakery that operates a stand featuring their baked breads and rolls.

“Our tag line is ‘from our family to your table.’ For us it’s all about bringing families back to the dinner table,” Phil, now 50, said. “It’s where we get to know each other and how our day went. These moments are priceless. It was in our book of family values that families should have the fare that enabled them to have meals together. We didn’t just feel that we had to offer the best meats, but also help enable those who should eat together and spend family time together to do just that.

“Also in 2014, one of our employees asked if we might be interested in buying his family’s barbecue and grill sales shop nearby. We thought about it long and hard and realized that the grilling and outdoor eating season in Wisconsin is only a few months long. If someone couldn’t succeed in that business for a few months a year, they would be losing money during all those other months. We agreed to purchase that shop’s existing inventory and sell those type of items at the limited space we still had at The Meat Block space in the mall.”

That wing of the business operates as BBQ Pits ‘n Spits. For the Schmidts, you don’t just offer something for sale…you do it right. That section of The Meat Block doesn’t just sell grills and charcoal; they are a virtual barbecue nation under one roof. This branch of The Meat Block has blossomed into a division that designs complete outdoor kitchens, cooking grills and supplies, refrigeration, gas, electrical and charcoal systems and even storage areas.

When queried about whether any of The Meat Block’s force of 85 employees work at more than one division, Phil’s enthusiasm lights up:

“Absolutely yes,” he said. “You can buy a grill through the mail. But at BBQ Pits ‘n Spits, we have qualified people there to make sure you know how to use it on day one. I’m not just talking about how to turn it on, but how to use it properly for meats, poultry, seafood…you name it. Our people are experts, and we want to give [customers] recipes and teach them how to bring out the best in the meats they are making. Making them look good makes us look good.”

The Meat Block is a modern family business, with parents Phil and Vicki Schmidt leading their children in helping the company survive and thrive. (Source: Schmidt family)

Closing circle

If it appears that the rainbow showed up for the fledgling business in 2014, you are spot on. Not long after that, things grew even rosier for Phil and Vicki.

Before establishing The Meat Block, Phil had spent 20 years working at a nearby meat company. That business was Haen Meat Packing in nearby Kaukauna, roughly 18 miles away from Greenville. Haen Meat Packing was a standout processing house that took home awards for their meat products in state and national competition seemingly by the truckload.

Tim Haen, one of the four brothers who operated that company, explained that the brothers felt they had taken the company as far as they wanted to grow, and it was up for sale. Tim, who served as president of the American Association of Meat Processors (AAMP) from 2013-14, was described by Phil as his life-long mentor. In 2021, The Meat Block bought the Haen business with its renown product line-up, it’s slaughtering facility, retail shop and custom processing operation. The plant manager at the former Haen facility is none other than Tim Haen.

When The Meat Block bought Haen Meat Packing Co., they also bought a vacant house adjoining the property. That space is now dedicated to a new 5,000-square-foot retail area in Kaukauna and is the location for the expanded BBQ Pits ‘n Spits.

Top-notch quality

If it seems like Phil and Vicki were dealt nothing but aces, take a moment to read those cards closely. They have seven children including a 21-year-old son Logan who manages the grilling wonderland and daughter Taylor who has constantly updated the company website themeatblock.com, Facebook and other social media platforms. She does this remotely while attending college and updates the screens in the retail area showroom. Read it this way: it’s about family.

“We have serious family values and want our customers to feel them,” Phil said. “It pervades everything we do.

“Our beef is sourced from the 1855 Beef program. This is an elite line only offered to elite chefs, restaurants and meat markets. Only the very best USDA Choice and Prime Black Angus is used in this line, offering natural marbling and an incredibly rich beef flavor. It comes from Nebraska and Pennsylvania family ranchers and only 13% of all cattle qualify for the 1855 brand.

“Our poultry is all natural, antibiotic and growth hormone free,” Phil added. “We offer this from Gold‘n Pump and Gerber Amish birds and offer gourmet stuffed chicken breasts, marinated breasts and heart healthy chicken sausage products.”

The Meat Block is no slouch when it comes to the over 100 different products the company makes in the sausage and cured meat cuts areas, and they employ three Master Meat Crafters in the Fox River Valley to oversee that operation. Phil estimates the company’s five truck smokers will grow to 15 within the next year or so. The company also supports local agriculture through sales of maple syrup, honey, frozen fruits and other produce.

Phil has just finished serving on the board of directors of the Wisconsin Association of Meat Processors for the past 12 years and readily shares how it all happened:

“I’m old school and there is no pass for not getting it right. You have to create and accept the culture of today. Be proud of your products in the knowledge you’ve made them the best they can be and treat all employees and customers like they are family. And don’t be afraid to charge enough for your product…that’s easier when your customer knows they are getting the best.”

Phil adds that the firm is undergoing a rebranding to put all its products under The Meat Block brand and is having success in its early efforts to private label meats for livestock producers and co-pack for other small processors.

“We are actively looking to develop new business relationships and grow our business,” Phil said. “I couldn’t have done this without the support of my beautiful wife; thanks to her believing in me and my crazy dreams, we have been able to accomplish great things and we are not done yet.”

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Judge strikes down FTC noncompete ban nationwide

Dive Brief:

A Texas federal judge on Tuesday struck down the Federal Trade Commission’s ban on noncompete agreements in employment contracts, holding that the ban violates the Administrative Procedure Act and exceeds the agency’s statutory authority. The ruling applies nationwide.
Judge Ada Brown of the U.S. District Court for the Northern District of Texas had already ruled against FTC in Ryan LLC v. Federal Trade Commission last month. Brown preliminarily enjoined the noncompete ban but only with respect to the case’s plaintiffs and plaintiff-intervenors. Her Aug. 20 decision, however, sets the regulation aside entirely, as the APA “does not contemplate party-specific relief,” she wrote.
FTC’s ban had been set to take effect Sept. 4. Brown’s decision splits with that of a Pennsylvania federal judge who sided with FTC on July 23 and declined to block the ban. Last week, a Florida federal judge also issued a limited injunction of the ban, holding that FTC likely exceeded its statutory authority.

Dive Insight:

The FTC’s noncompete ban targeted contractual clauses that apply to an estimated 1 in 5 U.S. workers by the agency’s own estimates. The rule would have allowed noncompete agreements with certain senior executives prior to the rule’s effective date to remain in force while rendering all other noncompetes unenforceable.

As with other regulatory efforts from the Biden administration, however, the ban was swiftly challenged by employers and business advocates. In addition to the FTC’s ban, those parties also fought the National Labor Relations Board’s joint employer rule as well as the U.S. Department of Labor’s independent contractor and overtime eligibility rules.

In Tuesday’s decision, Brown held that the Federal Trade Commission Act gives the FTC “some authority to promulgate rules to preclude unfair methods of competition” but that the agency “lacks the authority to create substantive rules” such as the noncompete ban. She said this is supported by the fact that Congress did not prescribe sanctions for violations of certain FTC regulations, “which indicates a lack of substantive force.”

Brown also concluded that the FTC’s ban is arbitrary and capricious within the meaning of the APA “because it is unreasonably overbroad without a reasonable explanation.” She said the agency failed to offer evidence for its decision to prohibit all noncompete agreements instead of targeting specific, harmful agreements.

“This is the outcome we have predicted since the FTC first proposed the rule almost two years ago, and we expect it to be upheld on appeal, ultimately by the Supreme Court,” Erik Weibust, member of the firm at Epstein Becker Green, told HR Dive. “This is a perfect example of the judicial system holding unelected bureaucrats to account for their overreach in an area that they have neither the expertise nor Congressional authorization to regulate.”

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PAC Strapping Products Highlights its High Performance Polyester Strapping

Superior performance and lower cost compared to steel and other traditional strapping options

PAC Strapping Products, a leader in the strapping and packaging industry, highlights its High Performance Polyester Strapping, a consistent, high-quality product for the toughest strapping applications. PAC High Performance Polyester Strapping combines the strength of steel strapping with the safety and economy of plastic to maximize performance, resulting in a more secure load at a lower cost.

Designed to meet the rigorous demands of heavy-duty bundling, palletizing, and load security, PAC’s High Performance Polyester (PET) Strapping promises superior performance compared to steel and other traditional strapping options. Engineered with advanced materials and through state-of-the-art manufacturing processes, this robust, cost-effective strapping solution ensures secure and reliable load containment.

One of the key benefits of PAC High Performance Polyester is elongation recovery. Applied properly, PAC High Performance Polyester Strapping will stretch under tension. However, most of the elongation is recovered after the initial application. The result is a strap that stays tight even if the load shrinks or settles during transit. Additionally, the PET material maintains high retained tension, staying tighter than steel and polypropylene. Ultimately, this results in shipments that remain secure even when they undergo significant movement during transit.

PAC High Performance Polyester is environmentally friendly due to its high recycled content and ease of recyclability. PAC Strapping offers solutions for their customers and municipalities to support recycling strap, helping to close the loop. Moreover, it is almost impervious to weather conditions, unlike steel, which rusts and is affected by the elements.

Safety is another critical benefit: the danger from strap recoil injuries is significantly reduced, there are no sharp edges with PAC High Performance Polyester which eliminates operator lacerations and PAC High Performance Polyester coils weigh about half as much as steel coils, enhancing lifting ergonomics and reducing potential injuries.

Cost savings can also be substantial, with a potential of 25-50% over steel strapping. In addition, there are potential opportunities for labor cost reductions when applying PAC High Performance Polyester over steel.

For more information about PAC Strapping Products and the significant financial and performance benefits of converting from steel to PAC High Performance Polyester Strapping, visit https://strapsolutions.com/products/plastic-strapping/high-performance-polyester-strapping/.

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