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Archive for Week of February 2, 2010
SUPERMARKET NEWS
Price Chopper Balks As Court Approves Tops Bid For Penn Traffic Stores
Tops Friendly Markets of Western New York announced last week that its bid to acquire a majority of Penn Traffic’s assets, including its 79 supermarket locations, has been approved by the U.S. Bankruptcy Court.
However, Price Chopper is claiming that Penn Traffic broke its contract to sell 22 stores to Price Chopper and claims significant economic losses and damages in a lawsuit court filing.
On Jan. 8, Tops submitted a bid including cash as well as additional value created by substantial reductions in unsecured claims made against Penn Traffic by UFCW Local One Pension Fund and C&S Wholesale Grocers.
Tops was founded in 1962. Two years ago Tops returned local management and operations to Western New York. Since that time, new Tops management, headed by Frank Curci, have created more than 140 new jobs at its headquarters, pumped more than $20 million into the local economy, and committed to a comprehensive $150 million capital improvement plan; with five stores remodeled alone in 2009. Before the Penn Traffic bid, Tops has 71 company owned and five franchise locations.
A&P Chooses Ron Marshall As New President/CEO
A&P announced last week announced that Ron Marshall will be the new company president and chief executive officer effective Feb. 8th.
According to A&P, Mr. Marshall has extensive experience leading a public company, with a track record of successful turnarounds. He has broad experience in the retail industry and specifically in food retail where he has spent more than 12 years of his career in the highest levels of management. Mr. Marshall was president & chief executive officer at Borders Group, the CEO at Nash Finch, and previously an executive vice president and chief financial officer of Pathmark.
RE/Max Real Estate Offices To Locate In Stop & Shop Stores
RE/MAX of New England last week announced that it has entered into an exclusive, five-year agreement with Stop & Shop to develop micro real estate offices in supermarkets located in Massachusetts, Connecticut, Rhode Island, and New Hampshire. This marks the first time that a major real estate brand has teamed up with a large consumer retailer to house real estate offices in their retail spaces.
This year up to 17 micro RE/MAX offices will open in Stop & Shop stores in Rhode Island, Massachusetts and Connecticut. The micro offices have been designed to provide a consistent look and feel for each location, thereby creating the opportunity for strong brand recognition and presence throughout the Stop & Shop chain.
Jay Hummer, executive vice president of RE/MAX of New England said, “The true upside of these RE/MAX franchises is that a broker will have a smaller and more economical office, at a lower initial investment, and the consumer will have the one stop shopping experience they are looking for. Even more exciting for the small business owner is that these turnkey operations are offered at a lower cost, are in high traffic areas of the store and provide a face to face opportunity with the consumer. We believe many teams are going to jump on this opportunity to grow their business.”
Retail Latest Word…
According to the Mass. Food Assn, the proposed 2011 Massachusetts budget contains sections to: expand the state’s bottle bill to all non-carbonated drinks; repeal the sales tax exemption for candy and soft drinks, and; extend the cigarette excise rate to cigars and tobacco.
Stop & Shop is negotiating with UFCW Local 328 which represents 14,000 employees in southeastern Mass., Connecticut and Rhode Island. The current contact expires Feb. 20.
Freezing temperatures will cost Florida farmers at least 30 percent of their crops and hundreds of millions of dollars, according to the Florida Department of Agriculture & Consumer Services. The January cold snap has hit fruits, vegetables, tropical fish, nursery plants and shrubs. In southwest Florida, the tomato crop will likely sustain a 70 percent loss, according to the Florida Tomato Growers Exchange. The result is that East Coast shoppers will discover some produce hard to find and prices higher on bell peppers, citrus, snap beans, squash, strawberries, sweet corn and tomatoes.
King Arthur Flour has honored Burt Bruet, an Acosta business manager as its Broker of the Year.
   
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FOODSERVICE NEWS
Maine Restaurant Assn. Announces 2010 Awards
Chef Rick Hirsch, owner of midcoast Maine’s Damariscotta River Grill, has been named the Maine Restaurant Association’s 2010 Chef of the Year. Announced by the Association’s chairman of the board, Mary Dysart Hartt, the award will be presented to Chef Hirsch at MeRA’s Annual Awards Banquet on Tuesday, March 30, at the Holiday Inn by the Bay in Portland
Other awards to be presented at the banquet include: Jen Beltz and Thom Householder of Front Burner PR as Allied Member of the Year; the Henry Family of the Maine Diner of Wells, Maine as “Restaurateur of the Year,” and Ed Degenhartdt, one of Maine’s original McDonald franchises in 1974 will be presented the Bill Zoidis Lifetime Achievement Award.
U.S Foodservice Creates New Website For Operators
Last week U.S. Foodservice launched two new websites to help restaurant operators improve sales and efficiency by leveraging industry best practices. Foodsight (www.usfoodsight.com) and Beyond the Plate (www.beyondtheplate.com) offer articles, tools, testimonials, product solutions and interactive features created to assist operators in building their business.
Foodsight has six main sections: Featured Category: In-depth articles on a different product category each quarter Market Insights: All the latest industry trends and research; Business Solutions: management tools; Operator News: Operator profiles and success stories; additional Products: Information on other U.S. Foodservice exclusive brands, products and supplies; and Resources: Valuable partner links and program information
Beyond the Plate is an on-line, interactive resource center where professionals can learn about and discuss new products, marketplace trends and the art and enjoyment of good food. Visitors can access a wide range of food information, including recipes, training videos and articles about food, dining and the culinary lifestyle. There is also a special “Ask the Chef” feature where visitors can get answers to their questions from U.S. Foodservice chefs.
Burger King Expands WHOPPER Bar With Beer Sales To Miami’s South Beach
Burger King Corp. recently announced the opening of the WHOPPER Bar in the heart of Miami’s South Beach. The new location will open its doors next month and adds ice-cold beer on the menu. WHOPPER Bar South Beach will operate 24 hours a day, seven days a week and provide a walk-up window for on-the-go orders as well as food delivery service.
The world’s first WHOPPER Bar opened its doors in March 2009 at Universal CityWalk at Universal Orlando Resort, followed by the opening of others in Munich in June 2009, Singapore in September 2009 and Venezuela in November 2009. Future WHOPPER BARS are planned for New York City, Las Vegas, Los Angeles and Malaga, Spain. in high profile venues like sports arenas, airports and other tourist destinations.
After customers select their sandwich, “WHOPPER®-istas” build burgers to order from a visible toppings theater that lets guests choose from an array of more than 20 favorites. At this Miami Beach location, restaurant guests can pair their premium WHOPPER sandwiches with an array of Anheuser-Busch and MillerCoors beer products, including Budweiser, Bud Light, Bud Light Lime and Miller Lite.
Food Service Latest Word…
The Mass. Legislature is nearing passage of a bill to ban high calorie sodas and salty and sugary snacks from elemetnary and high schools. The House approved the bill last week also encourages sdchools to serve low dairy products and whole grain breada and pastas. Mass. Governor Deval Patrick wants to go one step further and start to tax candy and soda and funnel the extra revenue into health programs.
AGAR has signed a six year supply agreement with Papa Gino’s and D’Angelo Grilled Sandwiches.
On Sunday, Feb. 7, all the Hooters restaurants in the U.S. and Canada will donate all to go and dine in sales food and beverage orders during the fourth quarter to the Haiti relief effort.
A combination of baked items, plant sales and 50/50 raffle by Fitz Vogt and Associates and the Hillsborough County N.H. Nursing Home netted $1,000 for Haiti relief on Jan. 26.
   
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C-STORE NEWS
NACS Takes Issue With Country Of Origin Labeling For Fuels
The National Assn. of Convenience Stores (NACS) last week took issue with a proposal by U.S. Rep. Bruce Braley to introduce legislation that would require country of origin labeling for fuels.
Specifically, the bill would require the federal Department of Energy “to conduct a study and implement its recommendations to ensure American consumers have the ability to decide at the gas pump whether they want to purchase domestic fuel products, such as biofuels produced in Iowa, or gasoline produced in hostile nations that many terrorists call home.”
“I understand that the ethanol community is trying to refocus attention on domestic sources of renewable energy, and that is a fine objective. However, trying to mandate that every pump in the nation contain a label that informs the consumer where the gasoline they are purchasing came from is unproductive and simply a diversion from addressing the real issues facing the market,” said John Eichberger. NACS Vice President of Government Relations.
“Until equipment is certified to allow retailers to sell higher levels of renewable fuels without the threat of litigation and fines, successful implementation of existing law is impossible. NACS calls upon Congress to take action to facilitate the implementation of the laws it has already enacted, rather than pursuing ill-conceived legislation that will achieve nothing,” said Mr. Eichberger.
Hot Fuel Issue Nears An End
The National Conference on Weights and Measures (NCWM) voted last week to put to final rest the issue of retail automatic temperature compensation (ATC) and the debate over the retail sale of “hot” fuel.
Last summer, weights and measures officials voted to withdraw proposed changes to rules governing the method of sale of petroleum at retail. Those proposed changes would have either mandated all retailers sell temperature adjusted gallons or authorized states to permit retailers to do so. However, the Specifications and Tolerances Committee, which establishes the protocols for implementing and testing such regulations, retained its proposed ATC provisions as informational, leaving them open for further discussion. But Last week, federal weights and measures officials voted to officially withdraw the proposals under the jurisdiction of the Specifications and Tolerances Committee. In addition, the Board of Directors also voted to dissolve a special task force that was formed to evaluate ATC issues and develop recommendations for regulatory changes.
Pepsi Throwback Lauded By Sugar Assn.
The Sugar Association recently applauded Pepsi-Cola for reintroducing Pepsi Throwback, which will be sweetened with all natural sugar instead of high fructose corn syrup.
Pepsi is not the only beverage bottler making a return to sugar. Dr Pepper recently released Heritage Dr Pepper and Gatorade just made a similar announcement to move back to sugar. Snapple and Jones Soda have likewise moved away from corn syrup.
“Hopefully, this reintroduction of Pepsi Throwback means that the first trial was a success,” said Andy Briscoe, chief executive officer of the Sugar Assn. “And hopefully, the second trial will be just as successful so sugar-sweetened Throwback will become a permanent product on grocery store shelves. When you think about it, sugar is the only sweetener that is all natural, only 15 calories, has been safely used for over 2,000 years, and is a sweetener you can pronounce.”
C-Store Latest Word…
According to the New England Convenience Store Assn. (NECSA) Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont are all facing budget deficits and projected shortfalls. Tax proposals are being put forward by state officials and legislators. NECSA opposes tax increase proposals on C-Store products and each NECSA state chapter is working against their passage because of the negative impact on store sales and customers’ wallets and “because it often creates poor state tax policies,” said Diana O’Donoughue, NECSA executive director.
LUKOIL recently acquired 11 Philadelphia Getty gas stations for $9.8 million. The acquisition continues the spread of the LUKOIL brand through the region. LUKOIL had purchased 750 Mobil gas stations throughout New Jersey and Pennsylvania and converted them to the LUKOIL brand. In November of 2009, Getty completed the sale of 164 branded gas stations, contracts to supply nearly 339 other stations and other assets including the home heating oil and propane gas company to LUKOIL North America.
   
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NEW CHANNELS
Wal-Mart Closes 10 Sam’s Clubs, Hires Marketing Co. To Run Demo Unit
In early January, Wal-Mart Stores announced plans to close 10 underperforming Sam Club’s stores and followed it up last week with a decision to appoint Shoppers Events to run the company’s Demonstration Program. The demonstration program decision impacts 10,000 Sam’s Club associates, most of whom are part-time. All of the current cub demonstration associates will have the opportunity to apply for jobs at Shoppers Events.
Sam’s Club is working with Shoppers Events to launch “Tastes and Tips” Program which will integrate demonstration tables, signage, uniforms, and product selling. “According to Brian Cornell, president and chief executive officer of Sam’s Club, the new program will give Sam’s Club the “opportunity to highlight our value and selection to our members in food and beverage products, personal wellness, and electronics.
The impacted 10 closing stores are located in Nampa, Idaho; La Quinta, Irvine, Vista, and Sacramento, Calif.; Louisville, Colorado; Rolling Meadows, Illinois, Clay, N.Y.; Houston Texas, and Phoenix, Ariz.. Nearly 1, 500 of Sam’s associates will be impacted as a result of the store closures.
Target Eliminates Farmed Salmon From Its Stores
Target last week announced that it has eliminated all farmed salmon from its fresh, frozen, and smoked seafood offerings in its stores nationwide. This announcement includes Target owned brands - Archer Farms and Market Pantry - and national brands.
All salmon sold under Target owned brands will now be wild-caught Alaskan salmon. Additionally, sushi featuring farm-raised salmon will complete its transition to wild-caught salmon by the end of 2010. In consultation with the Monterey Bay Aquarium, Target is taking this step to ensure that its salmon offerings are sourced in a sustainable way that helps to preserve abundance, species health, and doesn't harm local habitats.
"Target strives to be a responsible steward of the environment, while also providing our guests with the highest-quality food choices," said Greg Duppler, senior vice president, merchandising, Target. "Our guests now have an array of sustainable seafood choices at great prices."
Whole Foods Offers Staff Discounts For ‘Health Starts Here’ Plan
To help shoppers and staffers who want to improve their health easily and naturally, Whole Foods Market (has launched its "Health Starts Here" initiative at all 289 locations in Canada, the United Kingdom and the United States.
The Team Member Healthy Discount Incentive offers increased discounts for full- and part-time Team Members (enrolled in the company's medical plan) who do not use nicotine products and satisfy certain healthy biometric criteria for blood pressure, total cholesterol (or LDL) levels and Body Mass Index (BMI). Team Members already receive a 20 percent discount on purchases at Whole Foods Market stores as an employment benefit, but now, those who voluntarily opt to participate in the incentive plan could receive up to an additional 10 percent discount.
Whole Foods Market will feature free information, recipes, in-store lectures, events and support groups. A selection of supporting educational books and cookbooks will also be for sale alongside the "Engine 2 Diet" book and "Eat Right America" program materials. To help shoppers identify healthy, nutrient-dense foods, stores will post signs with Aggregate Nutrient Density Index (ANDI) scores.
New Channels Latest Word…
The Chesterfield, N.H. distribution center of United Natural Foods has attained the federal EPA Energy Star rating. The rating, according to UNFI marks it as one of the most efficient distribution facilties in the nation for superior energy efficiency and environmental protection. To qualify, the Chesterfield facility had to place among the top 25 percent of the most energy efficient facilities in the U.S.
Nestle’ Waters North America will relocate its headquarters from Greenwich to Stamford, Conn., in 2010. Nestle Water has 475 employees and intends to add 25 headquarter jobs over the next three years.
John Standley, former chief executive at Pathmark, is the new president and chief executive officer at Rite Aid Corp. Mary Sammons, will continue as chairman.
   
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