Meat+Poultry - August 2018 - 12


"While we drove some traffic with,
I should say, a younger male, it was not
necessarily loyal traffic, and the more
we did that, we also seemed to be losing
female traffic that has historically been
a more core customer for us," Hudson
explained during a June 26 earnings
call. "Fifty-eight percent of our traffic
transactions historically have been with
women, and during happy hour, it's
much greater than that. So, one of the
objectives this spring was to engineer
that burger so that - design it in the
first place so it would have a different
kind of appeal and it could fit from a
promotional standpoint."
Sonic also launched television ads
starring women in an effort to resonate
more with female consumers.
In the third quarter ended May 31,
Sonic net income was $21,576,000,
equal to $0.58 per share on the common
stock, up 15 percent from $18,751,000,
or $0.44, in the year-ago period.
Excluding special items, net income
increased 7 percent in the quarter,
according to the company.
Revenues for the period totaled
$118,306,000, down 4.6 percent from
$123,990,000. System same-store sales
slipped 0.2 percent during the quarter,
driven by a 1 percent decline in traffic
that partially was offset by a higher
average check.



MEAT+ POULTRY | 08.18 |

Maple Leaf Foods has reached an
agreement to acquire two poultry
plants and associated supply from
Cericola Farms. The two facilities are in
Bradford, Ontario, and Drummondville,
Quebec, and process approximately
70.5 million lbs. of chickens annually.
In addition to the poultry plants,
Maple Leaf has agreed to acquire all
the processed chicken volume from
Cericola's primary processing plant in
Schomberg, Ontario. Maple Leaf also
said it will have the option to acquire

the Schomberg plant and supply in
three years.
"Cericola is a leader in raised
without antibiotics and organic
chicken," said Michael McCain,
president and CEO of Maple Leaf. "This
acquisition will build Maple Leaf's
market leadership in these value-added
categories and enable us to meet
growing consumer demand."
Maple Leaf said it has transitioned
most of its flagship Maple Leaf Prime
chicken brand to Prime RWA, where
the Canadian market is growing at
about 25 percent annually.

The Kroger Co. announced an
investment of $17 million toward
the expansion of the company's
distribution center in Florence,
Kentucky. The facility will support
higher production capacity needed
to fulfill the demands of the Restock
Kroger initiative, in which the retailer
aims to redefine the customer
experience through data-driven
decision making, personalization,
pricing and shelf space optimization.
The Florence distribution facility,
a 674,000-sq.-ft. ambient distribution
center, serves the company's direct-tostore distribution centers across the
eastern half of the United States, as
well as Kroger's growing e-commerce
and digital business. 
The project received a Kentucky
Business Investment (KBI) incentive
of up to $1 million over 10 years and
is linked to investment, job creation
and retention while reaching average
hourly wage targets.
The Florence facility, which opened
in October 2017, currently employs 80
workers. The expansion is expected to
create 250 new jobs. Kroger currently
employs more than 21,000 workers
throughout Kentucky.

For more news,

Sonic Drive-In

Online grocer FreshDirect unveiled
the company's new 400,000-sq.-ft.
distribution facility in the South Bronx

area of New York City.
Called FreshDirect Campus (FDC),
the facility enables the company to
offer more products to customers and
better supply its on-demand business
called FoodKick, the company said.
The FDC is equipped with robotic pick
towers, smart routing technologies
and nine miles of conveyor
belts, according to the company.
Temperature controlled areas of the
warehouse are designed to handle and
store fresh meat, seafood, produce,
bakery and deli products, in additions
to prepared food items. Premium ice
cream is stored in a specific freezer
room, while items such as bananas,
tomatoes and onions are stored
in refrigerated rooms that provide
optimal conditions.
An internal quality control app
called FDQC enables employees to
monitor, track and share all daily
quality ratings of every fresh item based
on real-time inspection decisions,
according to FreshDirect.
FreshDirect delivers groceries
directly to consumers in seven states
and the District of Columbia. The FDC,
according to the company, enabled the
addition of thousands of new products
to the company's offerings including
more than 800 new snacking items,
more than 500 new organic products
and more than 350 "new brands that are
disrupting the food industry."

Table of Contents for the Digital Edition of Meat+Poultry - August 2018