The Produce Reporter Week in Review March 28, 2025 

This week tariffs still loom large, and we had retail lawsuits, a big discounter sale, and a restructuring vertical farmer. 

Tariff deadline approaches 

April 2 is the day when the Trump administration says 25 percent tariffs will begin again for imports from Canada and Mexico, including fresh produce. Industry anxiously awaits tariff resolution – Produce Blue Book 

At this point, a yes they’re on, or no they’re off seems preferable to this continuing uncertainty.  

We talked with IFPA’s Rebeckah Adcock, who said industry leaders continue to talk to administration officials, including Agriculture Secretary Brooke Rollins, about the damage tariffs would do to the fresh produce supply chain. Within USDA, Adcock said the message is being received positively. 

Carve-outs for fruits and vegetables still could happen because tariffs don’t really help domestic producers compete with imports, considering the seasonal and perishable nature of fresh produce, and the fact that many domestic producers are maxed out on outputs, Adcock said.  

IFPA formally sent a letter to administration officials March 27 requesting exemptions for fresh fruits, vegetables, and floral. IFPA requests fresh produce tariff exemptions – Produce Blue Book 

A better way to help American growers is to reduce the regulatory load, Adcock said. Unfortunately, this includes labor, which is always a sensitive topic because it brings in the lightning rod issue of illegal immigration. 

It will be a busy weekend as next Wednesday’s deadline is so close. 

Plenty files Chapter 11 

Indoor vertical grower Plenty filed for Chapter 11 bankruptcy reorganization but plans to continue to operate its Virgina strawberry farm and Wyoming R&D facility. The company has also received a commitment for debtor-in-possession financing of $20.7 million. Plenty files Chapter 11, receives $20.7MM in debtor financing – Produce Blue Book 

Dan Malech, Plenty’s interim CEO, said the restructuring should allow the company to expand its strawberry production. 

Late last year, Plenty closed its Compton, CA farm, which grew leafy greens, saying it was going to focus on growing strawberries going forward. 

Dollar Tree sells Family Dollar 

Dollar Tree agrees to sell Family Dollar to private equity investors, essentially conceding that the integration didn’t work. Dollar Tree to sell Family Dollar – Produce Blue Book 

One of the biggest problems is the two chains’ customer bases are too different. 

Dollar Tree stores tend to be more suburban, selling crafts and nonessentials, while Family Dollar stores are more often in urban areas, selling groceries and household essential items at discount rates. 

Dollar Tree paid about $9 billion for Family Dollar in 2015 but the sale this week was for $1.007 billion. 

Kroger countersues Albertsons 

We all expected the fallout from the failed Kroger-Albertsons merger to be messy, and it delivered again this week. Kroger responded to Albertsons claims with its own, alleging that while Kroger was working for approval for the merger, Albertsons was secretly working to undermine it. Kroger brings counterclaims against Albertsons, alleging misconduct – Produce Blue Book 

Kroger would like to get away from the $600 million termination fee due to Albertsons. 

A juicy part of Kroger’s suit is arguing that unflattering communications from Susan Morris, Albertsons’ recently promoted CEO designate, helped tank the deal and was even cited by the Washington judge who blocked the merger. 

We haven’t heard the last of this drama.