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Archive for Week of February 9, 2010
 SUPERMARKET NEWS
New President Named At Southern Family Markets
Max Henderson Jr. has been named president of Southern Family Markets (SFM) of Birmingham, Ala. He is responsible for all food store banners that SFM operates in a four state region, Bruno's, Food World, Piggly Wiggly, Southern Family Markets, and SFM Liquor Stores. Southern Family Markets operates in Alabama, Mississippi, Georgia and Florida with a total of 66 stores. SFM is an affiliate of C&S Wholesale Grocers of Keene, NH.
Mr. Henderson has 28 years of experience in the supermarket arena. His last position with Royal Ahold was executive vice president & general manager of Tops Markets. He has also served in a management capacity at other grocers including, Giant Food Stores-Carlisle and Edwards SuperFoods. Jeff Burkhead will continue to serve as senior vice president/general manager for all five SFM banners.
AG New England Realigns Merchandising and Advertising Depts.
AG New England announced two promotions and the realignment of responsibilities relating to merchandising and advertising last week. Rick Wheeler, vice president of wholesale merchandising and procurement, is responsible for the weekly development of effective, consumer-focused advertising circulars or flyers. Sue Johnson, advertising manage, has been promoted to senior manager of marketing & communications. Kathleen McCarthy is promoted to advertising manager and responsible for the high-quality production of all marketing support materials and flyers for AG New England customers. She will also assist Ms. Johnson, in the planning and coordination of all special event advertising and marketing initiatives.
Tops To Evaluate Penn Traffic Stores
Tops Friendly Markets of Williamsville, N.Y., has begun the evaluation of the 79 supermarkets it purchased from Penn Traffic following Tops’ bid approval by the U.S. Bankruptcy Court. The stores are located in New York, Pennsylvania, Vermont and New Hampshire.
“We are very eager and excited to begin working with store managers and associates to best serve the grocery shopping needs of our new neighbors and customers,” said Frank Curci, Tops’ president and chief executive officer. “We’d like to thank everyone who worked and supported us in our efforts with this acquisition to retain as many jobs as possible, especially UFCW Local One, C&S Wholesale Grocers and U.S. Sen. Charles Schumer, and his staff, without whose help this deal would not have been possible. ” he said. Mr. Curci said all stores will remain open and operating through a transition services agreement with Penn Traffic while Tops evaluates each store over approximately the next 30 days.
He also said a review of the acquisition by the Federal Trade Commission (FTC) will continue. Once this evaluation is over, Mr. Curci said Tops would pursue a capital improvement program patterned after the current investment program Tops has in place for its stores in Western and Central New York.
Retail Latest Word…
Effective March 1, Acosta will assume retail coverage and retail store service for Procter & Gamble businesses with the exception of cosmetics.
Delhaize USA last week named Cathy Green as head of the Food Lion banners of Food Lion, Bloom, Harveys and Reid’s. Beth Newlands Campbell was named president of Hannaford and Meg Ham was named president of Bottom Dollar Food. All three are part of a new U.S. structure announced earlier by the Delhaize Group.
Advantage Sales and Marketing received Broker of the Year from Sambazon.
BI-Lo, Greenville, S.C. launched last week a new consumer savings plan, “Price Lock” that locks in savings on thousands of products at a set price for an eight week period with use of the customers “My B-LO Bonus Card.”
Ralph Crowley, president and chief executive officer of Polar and Adirondack Beverages will be honored at the Mass. Food Assn. Annual Convention in May.
SUPERVALU has appointed Julie Dexter Berg as executive vice president and chief marketing officer.
   
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 FOODSERVICE NEWS
Denny’s To Offer Free Breakfast On Feb. 9
Denny’s is once again offering a free meal as it will offer a Free Original Grand Slam on Tuesday, Feb. 9 from 6:00 a.m. to 2:00 p.m. The offer was made in Super Bowl ads on Sunday, Feb. 7.
“We are leveraging the power of Super Bowl once again to connect with our customers to keep Denny’s in their hears and minds by communicating our Original Grand Slam officer, said Nelson Marchioli, chief executive officer and president of Denny’s. “We know that times are still tough and a free hot breakfast helps a lot of folks and their families. We heard from thousands last year who thanked us. This year Denny’s will go even beyond one day of free meals by offering a number of every day affordable programs all year.” Other programs include an online sweepstake for a Free Original Grand Slam every week, free burger and fries for the first 500,000 who sign up for the new Denny’s Rewards Program, endless pancake and fries at participating locations; and a Free Original Grand Slam for birthdays at participating restaurants.
MRA Annual Awards Recipients Announced
The annual Mass. Restaurant Assn. Awards Dinner will be held Monday, March 15 at the Renaissance Boston Waterfront Hotel beginning at 6:00 p.m. (cocktail reception) with dinner at 7:00 p.m. Included in the program will be the announcement and presentation of the New England Food Show Booth of Excellence Award. Honorees this year will be Chef of the Year, Michael Schlow of Radius, Via Mata, and Alta Strade, all of Boston; Restaurateur of the Year, Ernie Tremblay of Sylvan Street Grille of Peabody, Mass.; Purveyor of the Year, Jim Kaloyanides of New England Coffee; and Salesperson of the Year, David Lamb of Costa Fruit & Produce. The awards dinner is part of the New England Food Show set for March 14-16 at the Boston Convention & Exhibition Center.
The keynote speaker for the show his year is Tim Kirland, author of The Renegade Server. His talk, titled “Uncommon Strategies for Making More Money in 21st Century Food Service,” will take place on Sunday, March 14, at 1:00 p.mAnother keynote session involves three noted Boston area chefs who will discuss “What’s in Store for 2010” Monday, March 15 at 1:00 p.m. Moderated by Chef Chuck Leonardo of Costa Fruit and Produce, the discussion panel includes Chef Martin Breslin, director of culinary operations for Harvard University Dining Services; Chef Thomas John, Au bon Pain’s executive chef, and Jamie Mammano, chef-owner of the Columbus Group, which includes Mistral, Teatro, Mooo, Sorelina, and L’Adana.
NRA Haiti Fundraising Efforts
The National Restaurant Assn. and the National Restaurant Assn. Educational Foundation have formed a national relief effort drive for Haiti. Through Share Our Strength, 100 percent of the proceeds for Restaurants For Relief Haiti will be sent to trusted relief organizations. For info, visit Restaurants For Relief Haiti for fundraising ideas. In other Haitian relief efforts, The Common Man Restaurants worked with the American Red Cross and Partners in Development to raise more than $60,000 through the generosity of its guests. Owner Alex Ray himself set for out Haiti on Jan. 26 with local nurse Carolyn Brown, bringing medical supplies, emergency equipment, a digital camera, and a laptop. He is chronicling his journey through www.thecman.com/do-good and associated Facebook and Twitter accounts.
Food Service Latest Word…
Tom Zatina, president of McLane Foodservice, is vice chairman of the International Foodservice Distributors Assn. (IDFA). Malcolm Sullivan Jr. president and chief executive officer of Pate Dawson Co. of Goldsboro, N.D. is the IDFA chairman and James Crawford, chairman and chief executive officer of Clover Hill Foods of Bridgeville, Pa. Larry Perkins, president of Perkins of Taunton, Mass. was re-elected as one of the IDFA board of directors.
Jack Crawford, former president and chief executive officer of the Ground round Independent Owners Cooperative has returned to his post after working for Uno Restaurant Holdings which recently filed for Chapter 11.
The Sheraton Braintree Hotel is now closed for renovations after a group of investors purchased the 374 room hotel. Karma Nominee Trust is in the processing of hiring a new hotel management company and negotiating for a new hotel brand.
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 C-STORE NEWS
Core-Mark Int’l Announces New Supply Agreement With BP Products
Core-Mark Int’l l has entered into a five year contract with BP Products North America to provide all of the ampm proprietary products to its 1,200 stores nationwide. “For more than two decades, we have enjoyed serving ampm franchisees in the West. I believe we are in a unique position to leverage this experience nationwide and, at the same time, facilitate common goals of strengthening the industry leading ampm franchise offer to the consumer,” said Michael Walsh, chief executive officer of Core-Mark.
Core-Mark provides distribution and logistics services as well as marketing programs to over 24,000 retail locations in 50 U.S. states and five Canadian provinces through 26 distribution centers, two of which Core-Mark operates as third party logistics providers. Core-Mark services traditional convenience retailers, grocers, drug, liquor and specialty stores, and other stores that carry consumer packaged goods.
Study Finds Fresh Foods Are Aiding C-Store Sales
Market research from The NPD Group recently concluded that fresh food purchases continues to be a category opportunity for convenience stores. A research report of 49,000 C-Store shoppers in the third quarter of 2009 found that half of fresh prepared food buyers at C-Stores chose a specific stores based on the food service offering. This up nearly a point over a year ago.
According to the NPD research, fresh prepared food buyers averaged 7.8 visits over a 30 day period compared to 5.66 for all C-Store shoppers. Fresh food buyers, on average, purchased 4.1 products compared to 1.64 products purchased by all C-Store shoppers. The average check for fresh food buyers was $1.65 higher than for all C-Store shoppers.
“Across the food service spectrum, consumers are returning to the fresh category,” said David Portalatin, industry analyst for NPD. “C-Stores are in an excellent position to meet their shoppers need for both convenience and fresh.”
NACS 2010 Gas Price Kit Released With New Elements
The National Assn. of Convenience Stores (NACS) last week released its annual online gas price kit designed to address common consumer questions about the U.S. petroleum market.
For each of the past nine years, the annual NACS Gas Price Kit has helped explain the complexities of the U.S. motor fuels market. This year, there are two new elements to the package: a searchable map that provides key state-by-state metrics related to motor fuels and video responses to consumers questions about the industry.
More than a dozen common consumer questions will be addressed via short videos by experts from NACS and the Oil Price Information Service (OPIS) in the latest gas price kit, with new videos posted every week. The initial videos address questions related to ownership of gas stations, the cause of price fluctuations and retail expenses and profits.
The searchable map feature will allow users to examine critical market conditions related to each specific state. “When events like hurricanes or refinery breakdowns occur in one region, there is a ripple effect throughout the rest of the country,” said John Eichberger, NACS vice president of government relations. “Where fuel is produced and how it is distributed has a significant influence on the price the consumer ultimately pays.”
NACS releases its annual gas price kit on February 2 to coincide with two events: Groundhog Day and the beginning of the seasonal transition to summer-blend fuels. The first week of February traditionally marks the beginning of the spring transition to summer-blend fuels for the petroleum industry. Over the past decade, gas prices have increased an average of 55 cents between the first week of February and their seasonal peak, which is typically mid May. In 2009, gas prices rose 80 cents between Feb. 2 and the seasonal peak on June 22.
C-Store Latest Word…
Worcester, Mass. based regional fuel supplier C.K. Smith & Co. recently closed 23 Irving Oil branded gas locations in Massachusetts and New Hampshire. Irving Oil does not own any of the stations. It only provides the gas. C.K Smith primarily sells and delivers fuel oil and propane.
The Pantry, Cary, N.C. posted a net los for the first quarter at $26.1 million. Terrance Marks, Pantry president and chief executive officer said first quarter operating results were adversely affected by below average fuel margins and soft grocery margins.
7-Eleven hopes to raise more than $2 million for charities with its “7-Eleven Coffee Cup With A Cause” drive.
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 NEW CHANNELS
Valentine’s Day Forecast Should Benefit Travel & Restaurants
IBISWorld, a industry and market research firm has predicted that total Valentine’s Day spending will be up 3.3 percent from 2009 levels and, because Valentine’s Day falls on a Sunday, the research firm project that dining out and travel will be the largest beneficiaries.
“Because Valentine’s Day lands on a Sunday, restaurants are likely to gain traffic throughout the entire weekend,” said Toon van Beck, senior analyst at IBISWorld. “Because President’s Day is on the following Monday, many consumers will be able to travel over the three-day weekend, further boosting restaurant sales.
But IBISWorld also cautioned that the unemployment rate and continued uncertainty over the economic recovery will hamper growth and expansion. Dining out, romantic getaway and greeting cards will show the biggest increases from last year but candy, jewelery, and flowers are expected to show spending declines.
PepsiCo Debuts Energy-Efficient, HFC-Free Cooler
PepsiCo announced last week that it will place the first hydrofluorocarbon-free (HFC-Free) coolers in the United States. The first test is throughout Miami as part of a pilot project to reduce the carbon footprint of its refrigeration equipment. The 35 new, innovative coolers use less energy than a 100-watt light bulb.
"PepsiCo is strongly committed to reducing its carbon footprint by reducing greenhouse gas (GHG) emissions in its coolers," said Robert Lewis, vice president of packaging and equipment for PepsiCo. "Energy consumption accounts for at least 95 percent of GHG emissions in coolers, and introducing these energy-efficient, HFC-free coolers is the next step in PepsiCo's strategic sustainability initiative to reduce harmful emissions from all of its refrigeration equipment."
On average, the new units use 44 percent less energy than 2008 models, and 20 percent less energy than Energy Star requirements. In addition, the new units use Hydrocarbon R290, a natural, environmentally responsible refrigerant that cuts direct GHG emissions by 99 percent.
Joint Retailer –Manufacturer Supply Chain Conference Marks Milestone
The Food Marketing Institute (FMI) and the Grocery Manufacturers Association (GMA) last week kicked-off the first-ever joint Supply Chain Conference under the auspices of the GMA-FMI Trading Partner Alliance.
With nearly 500 industry executives in attendance, the event combines the best aspects of FMI's annual Supply Chain Conference and the GMA Information Systems and Logistics/Distribution Conference (IS/LD) into one forum with a focus on enhanced collaboration between retailers and manufacturers along their shared supply chain.
“Retailers and manufacturers are united around the same key priority: serving consumers safely and efficiently,” said Stephen Sibert, senior vice president of industry affairs at GMA. “This joint conference platform brings trading partners together to find new ways to take time and costs out of the supply chain so they can meet consumer needs more effectively than ever.”
Among the highlights of the conference program are retailer-manufacturer small group discussions and collaboration case studies featuring Kraft Foods Inc., Publix Super Markets, Inc., Campbell Soup Company, Safeway Inc. and Hannaford Bros. Co. Attendees also learned the results of the 2010 Survey of Collaborative Supply Chain Effectiveness. Commissioned under the framework of the “New Ways of Working Together” program, the survey report illuminates new initiatives and operating models that can help trading partners improve supply chain efficiencies to their mutual benefit. The study is available online at www.gmaonline.org/publications and www.fmi.org.
New Channels Latest Word…
Costco Wholesale Corp promoted Craig Jelinek as its new president and chief operating officer. He was previously executive vice president of merchandising.
SUPERVALU has launched its own Baby Basic diaper line, promoting fit, cost-savings and better leak protection.
The Procter & Gamble Haitian relief effort has raised more than $2 million and Whole Foods Market and its customer have contributed $2.7 million.
The Monsey, N.Y. Pathmark will host the 2010 Kosher Fair on Sunday, Feb. 21. It is billed as one of the largest Kosher events in the region.
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