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5 Reasons Why Target Sold Pharm Biz to CVS

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This March 25, 2014, file photo, shows a CVS store in Philadelphia. CVS Health will buy Omnicare in a deal valued at about $12.7 billion in move to expand its pharmacy services reach into assisted living and senior care facilities. (AP Photo/Matt Rourke, File)

This March 25, 2014, file photo, shows a CVS store in Philadelphia. CVS Health will buy Omnicare in a deal valued at about $12.7 billion in move to expand its pharmacy services reach into assisted living and senior care facilities. (AP Photo/Matt Rourke, File)

Nathan Bomey, USA TODAY

 

 

(USA Today) — At first glance, Target’s (TGT) decision to offload its pharmacy and clinic business to CVS Health (CVS) may seem strange.

Why invite a retail competitor inside your stores?

But investors applauded the $1.9 billion deal.

Here are five reasons why the deal might make sense:

1. Complexity. The health care business is exceedingly complex, requiring a knowledgeable workforce to navigate a regulatory thicket that’s evolving rapidly in the wake of the Affordable Care Act.

Target’s primary business is selling consumer goods, not prescriptions. CEO Brian Cornell acknowledged that Target simply lacks the expertise to operate the pharmacy business efficiently.

 

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Black History

Madeline M. Turner: The Inventor Who Made Juicing Easier

Turner lived in Oakland during the early twentieth century, a period when opportunities for both women and African Americans in engineering, manufacturing, and invention were extremely limited. Nevertheless, she designed a sophisticated mechanical fruit press that could process citrus fruits much more efficiently than squeezing them by hand.

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A copy of Madeline M. Turner’s juicer patent.

More than a century before juice bars, smoothie shops, and freshly pressed beverages became commonplace, an African American woman in Oakland, California, developed an ingenious machine for extracting juice from fruit.

Her name was Madeline M. Turner, and although little is known about her personal life, her remarkable invention earned her an important place in the history of American innovation.

Turner lived in Oakland during the early twentieth century, a period when opportunities for both women and African Americans in engineering, manufacturing, and invention were extremely limited. Nevertheless, she designed a sophisticated mechanical fruit press that could process citrus fruits much more efficiently than hand squeezing.

On July 26, 1915, Turner filed an application with the United States Patent Office for what she described as improvements to machines designed to extract juice from fruits such as oranges and lemons. On April 25, 1916, she received U.S. Patent No. 1,180,959 for her “Fruit-Press.”

Turner’s machine was much more complicated than a simple handheld juicer. Fruit entered the machine through an opening at the top and was fed individually into a pressing chamber. Inside, a cutting mechanism divided the fruit. Two plungers then moved toward one another, using specially shaped concave and convex pressing surfaces to squeeze the fruit and extract its juice.

A copy of Madeline M. Turner’s juicer patent.
A copy of Madeline M. Turner’s juicer patent.

One particularly clever feature was the way the two plungers moved at different speeds and traveled different distances. Their coordinated movement allowed the machine to feed, cut, compress, and eventually release the fruit’s remains. She designed the apparatus to accomplish several steps mechanically rather than requiring a person to perform each operation by hand.

In her patent application, she also emphasized practicality. She explained that the machine was effective for its intended purpose and designed so that its parts could be kept clean—an especially important consideration for equipment used to prepare food and beverages.

Turner’s invention appeared during an era when the American food industry was rapidly becoming more mechanized. Machines were increasingly being developed to process, package, and distribute foods in larger quantities. Her fruit press demonstrated how mechanical engineering could make juice extraction faster and more efficient.

Unfortunately, historical records reveal little about what happened to Turner after her patent was issued. Her birth and death dates, education, family life, and later career have not been reliably documented. Even so, the surviving patent provides powerful evidence of her mechanical creativity and technical ability.

Today, Turner is remembered as one of the African American inventors whose innovations helped transform everyday life. Modern commercial juicing equipment is far more advanced than her 1916 machine, but the basic challenge Madeline tackled—automatically feeding, cutting, pressing, and extracting juice from fruit—remains central to food-processing technology.

Turner’s story reminds us that important inventors are sometimes nearly lost to history. However, thank goodness her patent will ensure that her creativity and contribution to American innovation will not be forgotten.

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Business

Gubernatorial Candidate Steve Hilton Blasts California New Tire Rules; Newsom Hits Back

Newsom defended the regulations Aug. 19, citing the commission’s projected savings for consumers. “I think it was a good choice,” said Newsom. “Save a billion dollars a year in fuel. Talk about an affordability agenda, that makes sense to me.”

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Gubernatorial Candidate Steve Hilton. File photo.

Republican gubernatorial candidate Steve Hilton is criticizing California’s new replacement-tire efficiency standards, arguing they will limit consumer choice and increase costs for drivers. 

Gov. Gavin Newsom, however, says the regulations will save consumers money.

Hilton protested the standards Aug. 20 outside the California Energy Commission in Sacramento, where he and supporters chanted, “Hands off our tires.” The commission unanimously approved the regulations Aug. 17, making California the first state to adopt energy-efficiency standards for replacement tires.

“We are done with these bureaucrats and these politicians in our state, making everything so insanely expensive,” Hilton said at the protest.

Hilton said that, if elected governor, he would eliminate or defund the Energy Commission. His opposition to the tire standards is part of his broader criticism of California’s high cost of living.

Newsom defended the regulations Aug. 19, citing the commission’s projected savings for consumers.

“I think it was a good choice,” said Newsom. “Save a billion dollars a year in fuel. Talk about an affordability agenda, that makes sense to me.”

The Replacement Tire Efficiency Program sets limits on rolling resistance, which measures how much energy a tire requires to move along a road. Tires with lower rolling resistance can improve a gasoline-powered vehicle’s fuel economy or extend an electric vehicle’s driving range.

The first phase will take effect in 2029, setting a maximum rolling resistance of 9.1 newtons per kilonewton. A stricter limit of 7.2 newtons per kilonewton will take effect in 2033.

The Energy Commission says the standards will ensure that replacement tires are, on average, at least as energy efficient as those installed on new vehicles. The agency estimates the regulations will save Californians nearly $1 billion annually in gasoline and electricity costs while reducing carbon dioxide emissions by two million metric tons a year.

Some tire manufacturers, however, have raised concerns about the effect on prices and product availability. Goodyear estimates that about 70% of replacement tires currently sold in California would not meet the 2033 standard and argues that the regulations could increase costs for consumers.

The Energy Commission estimates the standards will add about $1.50 to the cost of each tire during the first phase and $6.50 per tire beginning in 2033. The commission projects that a driver with a gasoline-powered vehicle could save about $179 in fuel costs over the life of a set of tires meeting the 2033 standard.

The regulations exempt several specialty products, including competition, winter, used, retreaded, motorcycle and certain off-road tires.

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Business

Frontier Airlines’ Return to Oakland Airport Brings Flights, Jobs and Opportunity

The inaugural celebration brought together elected officials, airport executives and Frontier Airlines leadership. Participants included U.S. Representative Lateefah Simon (D-CA-12), Oakland Mayor Barbara Lee, Port of Oakland Board President Stephanie Dominguez Walton, Port of Oakland Executive Director Kristi McKenney and Frontier Airlines Vice President of Public and Consumer Affairs Tyri Squyres.

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Ribbon cutting ceremony and celebration at Terminal 1, Gate 3 of Frontier Airlines at Oakland San Francisco Bay Airport. (L-R) Port of Oakland Executive Director Kristi McKenney, U.S. Representative Congresswoman Lateefah Simon (D-CA-12), Oakland Mayor Barbara Lee, Frontier Airlines Vice President of Public and Consumer Affairs Tyri Squyres, Oakland Metropolitan Chamber of Commerce president Barbara Leslie, and Port of Oakland Board President Stephanie Dominguez Walton. Photo by Carla Thomas

Oakland San Francisco Bay Airport welcomed Frontier Airlines back on Aug. 20, with a ribbon-cutting celebration marking the launch of new nonstop service between Oakland and Las Vegas.

The celebration, held in Terminal 1, highlighted Frontier’s return to the East Bay airport after last serving OAK in 2023. 

The airline’s new Las Vegas service expands travel choices for Bay Area passengers headed to one of the airport’s most popular destinations.

The new route is scheduled to operate 11 times weekly, including daily service, strengthening connections between Oakland and Las Vegas for both leisure and business travelers.

The inaugural celebration brought together elected officials, airport executives and Frontier Airlines leadership. Participants included U.S. Representative Lateefah Simon (D-CA-12), Oakland Mayor Barbara Lee, Port of Oakland Board President Stephanie Dominguez Walton, Port of Oakland Executive Director Kristi McKenney and Frontier Airlines Vice President of Public and Consumer Affairs Tyri Squyres.

“We’re excited to restart our service in Oakland,” said Squyres. “The early reaction and response have been great.”

“I’m so glad to have Frontier back,” said McKenney. “I appreciate the partnership we have. We work on it every day with our airlines, community, and our leadership. As your public agency, that’s what we’re here for; to create jobs and opportunities for our community.”

Dominguez Walton also chimed in.

“Today we are celebrating the inaugural flight from OAK to Las Vegas on Frontier Airlines. Oakland is the best way to and from the Bay,” she said.

Squyres highlighted the economic impact.

“Oakland is a critical gateway for the Bay Area moving nearly 10 million travelers each year. OAK is driving local and regional growth keeping the City of Oakland moving forward, moving ahead and also competitive,” she said. “Expanding travel opportunities means not only more options for residents but also opening more high-quality jobs. And when travelers arrive through OAK, they directly support our neighborhoods, businesses, hotels, restaurants, and our cultural attractions.”

Simon broke down what the airline’s reopening means to Oaklanders.

“It’s the grandmother heading to the family reunion at a price she can afford. It’s the small business owner who gets to go to the industry tradeshow and be back by dinner. And it’s the family being able to come from Nevada to get excellent cancer care at our Children’s Hospital at a price they can afford,” she said.

Oakland San Francisco Bay Airport serves as the primary airport for much of the East Bay and provides connections to the region through highways and BART. Operated by the Port of Oakland, the airport is part of a broader transportation and economic network that also includes the Oakland seaport and approximately 20 miles of East Bay waterfront.

According to the Port of Oakland, its operations and business partners support nearly 100,000 regional jobs and generates nearly $175 billion in economic impact.

Simon also emphasized the flights’ potential to create well-paying jobs in the local community.

“More flights means more work for real people in the community, in East Oakland. We know aviation work is steady, and it pays well. It’s work that brings in good labor jobs and prevailing wages.”

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