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Archive for Week of May 4, 2010
SUPERMARKET NEWS
Water Break Causes Emergency Situation In 30 Mass. Communities
On Saturday, May 1, Mass. Governor Deval Patrick declared a state of emergency in 30 communities around Rte. 128 in response to an emergency water break in Weston, Mass., which controls water under the Mass. Water Resources Authority (MWRA) district. Gov. Patrick has ordered a . A "Boil Water Order for all residents and businesses is in effect for the impacted communities. Water should be rapidly boiled for at least one minute. In addition, emergency water conservation measures are being implemented for all impacted communities.
Although water repairs have gone better than expected, water testing is needed for at least 24 to 48 hours. It is possible all the water restrictions could be lifted in the vicinity of Tuesday through Thursday of this week.
Gov. Patrick asked all supermarkets in this region to stock up on bottled water. He asked the state Division of Standards to monitor any sign of price gouging.
Impacted communities are: Arlington, Belmont, Boston, Brookline, Canton, Chelsea, Everett, Lexington, Lynnfield Water District, Malden, Marblehead, Medford, Melrose, Milton, Nahant, Newton, Norwood, Quincy, Reading, Revere, Saugus, Somerville, Stoneham, Stoughton, Swampscott, Wakefield, Waltham, Watertown, Winchester, Winthrop.. Updates will be posted on Mass.gov and MWRA's website at www.mwra.com throughout the emergency situation .Residents and businesses can also call Mass 211.
The Massachusetts Emergency Management Agency requested the assistance of Nestle Waters North America (NWNA) to help with the Eastern Massachusetts boil alert situation. The crisis comes one day after NWNA signed a contract with the state as an official emergency provider.
Current actions by Nestle’ Waters includes:
Delivering 10 truckloads of Poland Spring bottled water to area communities with further deliveries expected to include dozens more truckloads of Poland Spring and Nestle Pure Life Bottled Water.
Completed deliveries to area hospitals including the VA Medical Center in West Roxbury, Beth Israel Deaconess Medical Center and Newton-Wellesley Hospital.
NWNA's bottling facility in Framingham, Massachusetts began additional bottled water production on Saturday, May 1.
BI-LO Receives Confirmation For Reorganization Plan
BI-LO, Greenville, S.C. announced late last week that the United States Bankruptcy Court confirmed the company's Plan of Reorganization, and that BI-LO will emerge from bankruptcy in May.
The new finance plan is sponsored by Lone Star Funds and includes a $150 million new equity investment by Lone Star and $200 million in committed term loan financing from Credit Suisse. In addition, GE Capital will provide for a $150 million revolving credit facility for BI-LO post-emergence to fund working capital and other normal business needs. The company expects to have between $40 and $50 million of cash borrowings on the revolving credit facility immediately after emergence.
"We are very pleased to have reached this major milestone in BI-LO's history," said Michael Byars, President and Chief Executive Officer of BI-LO. "This is a great achievement for BI-LO and is a reflection of the Company's current performance and our commitment to our customers, suppliers, and Teammates. BI-LO will emerge from bankruptcy financially stronger, with less debt, and as a more competitive company in the marketplace."
BI-LO operates 207 supermarkets in South Carolina, North Carolina, Georgia and Tennessee, and employs approximately 15,100 people.
Price Chopper Continues Second Week of Promotions
Following up after senior executive promotions, Price Chopper also announced several merchandising and operations appointments last week.
Angelo Cannistraci was promoted to vice president of merchandising and will oversee fresh merchandising, grocery, general merchandise, HBC, and pricing for the 125 store chain. He has worked for Price Chopper since 1975 and held many positions in the company, most recently as vice president of grocery merchandising.
Jack Serota was named vice president of grocery merchandising and most recently was vice president of general merchandise. He came to Price Chopper from Giant Food where he was director of general merchandise and HBC. On the operations side, Ed McManus was promoted to a regional vice president and will oversee 42 Price Chopper stores in Vermont and northern and central New York. He replaces Al Provencher who retired.
John Medulla was promoted to zone director and will oversee 15 Price Chopper stores in the Capital District area. Terry Jerauld was promoted to a zone director, and will oversee 14 stores in central New York.
Tom Bird was named vice president of supply chain integration and will be responsible for inbound traffic scheduling, non-perishable procurement, and store ordering. Price Chopper also named Bill Bishop as director of warehousing operations.
Retail Latest Word…
Ron Hodge, chief executive officer of Delhaize USA, will lead a group of four male executives who will offer some advice and perspective on women’s advancement in the marketplace at the New England Network of Executive Women (NEW) Spring 2010 Networking Lunch Friday, May 7 at the Westin Hotel, Waltham. Mass. Other panelists include Tim Boyce, associate director of customer business development at P&G; David Casey, vice president and diversity at CVS Caremark, and Paul Khanna, principal of technology practice, at Deloitte Consulting LLP. Lau Lapides, will lead a morning workshop at 9:30 a.m. followed by the lunch program at noon. Register online at newonline.org/events.
Union workers at ACME said they will lend support for their striking counterparts in New England, urging Shaw’s to resume contact talk. Three hundred workers at the Shaw’s perishable distribution center in Methuen, Mass., walked off the job on March 7.
Weis Markets has appointed Regina Tator and Greg Oldright as new directors of center store sales and Bruno Garisto as new director of private brands.
A&P has named Mark Kramer as its senior vice president of operations. He previously was a regional vice president of operations for Rite Aid. Peapod will distribute Heartland Meadow All Natural Meats from Albert Organics in the Illinois, Wisconsin, and Indiana.
   
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FOODSERVICE NEWS
Emergency Food Prep Issued During Boil Water Order
As of noontime, Saturday May 1, all food establishments in the 30 community Mass. Water Resource Authority district (MWRA) including restaurants, supermarkets, caterers, food service operations in schools, nursing homes and hospitals, charitable food facilities, kitchens in non-profit institutions, food manufacturers and distributors and anyone else involved in the commercial preparation and distribution of food, water and beverages are affected by the Mass. Boil Water Order..
These communities include Arlington, Belmont, Boston, Brookline, Canton, Chelsea, Everett, Lexington, Lynnfield, Malden, Marblehead, Melrose, Milton, Nahant, Newton, Norwood, Quincy, Reading, Revere, Saugus, Somerville, Stoneham, Stoughton Swampscott, Wakefield, Waltham, Watertown, Winchester, and Winthrop.
According to the Mass., Department of Environmental Protection's guidelines,all water used for drinking, preparing food, beverages, ice cubes, washing fruits and vegetables, should be brought to a rolling boil for at least one minute on a stovetop, in an electric kettle, or in a microwave-safe container.
Where “boiled” water is indicated, the water must remain at a rolling boil for at least one minute. Large volumes of water should be brought to a rolling boil for at least five minutes. Alternative sources of drinking water include commercially bottled water or hauled water from an approved public water supply in a covered sanitized container or use of a licensed drinking water tanker truck.
Operators should discontinue use of post-mix carbonated beverage machine, auto-fill coffee makers, instant hot water heaters, etc. using auto-fill; discard existing ice made after noontime on Saturday, May 1 and clean and sanitize ice bins and use commercially manufactured ice from an unaffected water supply.
Operators should not use tap water for washing/soaking produce but wash fresh produce with boiled, commercially bottled water, or safe potable water hauled from another unaffected public water supply system. Operators should not use tap water to thaw frozen foods.
Other information is available at the MWRA website ( www.mwra.com.)
NRA Performance Index Tops 100 for the First Time In Two Years
Fueled by improving sales and traffic levels and growing optimism among restaurant operators, the National Restaurant Association's comprehensive index of restaurant activity rose sharply in March. The Association's Restaurant Performance Index (RPI) stood at 100.5 in March, up 1.4 percent from February and its strongest level since September 2007. In addition, the RPI rose above 100 for the first time in 29 months, which the NRA says signifies expansion in the index of key industry indicators.
"The RPI's solid performance in March was driven by improvements among both the current-situation and forward-looking indicators," said Hudson Riehle, senior vice president of the research and knowledge Group for the Association. "Restaurant operators reported net gains in both same-store sales and customer traffic in March, the first time in 31 months that both indicators stood in positive territory."
The RPI - a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry - is constructed so that the health of the restaurant industry is measured in relation to a steady-state level of 100. Index values above 100 indicate that key industry indicators are in a period of expansion, while index values below 100 represent a period of contraction for key industry indicators.
16 Food Cos. Join NYC Salt Reduction Plan
Last week, New York City Mayor Michael Bloomberg announced the cooperation of 16 food companies in reducing sodium from some of their products, part of a nationwide effort to reduce America’s sodium consumption by 20 percent. The companies, including H.J. Heinz Co., Kraft Foods Inc. Subway, Au Bon Pain, Uno Chicago Gill and Starbucks, pledged their commitment to the voluntary National Salt Reduction Initiative.Also announcing support were Boar’s Head Provisions and Francesco Rinaldi Pasta Sauces, Goya, Mars Food, McCains and White Rose.
The salt reduction initiative has a goal of reducing the salt in packaged and restaurant foods by 25 percent over the next five years, which would reduce the nation’s salt intake by 20 percent. It is modeled after a similar program in the United Kingdom.
Food Service Latest Word…
The Common Man restaurants in New Hampshire will host its third annual “Taste of the Common Man” featuring all Common Man locations for an evening of food sampling to benefit The Circle Program and The Pemi-Baker Literacy Foundation. The event will be held at The Common Man Inn & Spa in Plymouth, N.H. on Thursday, May 6 from 6:00 to 9:00 p.m. The event will include an Iron Chef competition featuring teams of Common Man chefs, the Plymouth State University Ice Cream Apprentice Competition, and sampling of food from all Common Man family restaurants.
Realizing the potential of gift cards as a source of revenue for restaurants, the National Restaurant Association, and Council of State Restaurant Associations have added Heartland Gift Marketing to the lists of exclusively endorsed business solutions. Music star Toby Keith plans to open up his restaurant and entertainment venue “I Love This Bar and Grill” at Patriot Place this summer. The facility would include a 19,000 square foot restaurant, 50 HDTV sports monitors, a mechanical bull, and free live music. The Southern style fare includes pulled pork sandwiches, fried bologna sandwiches, meatloaf, and southern Fried Twinkies.
The 18th annual New England Coffee Charity Golf Classic has been rescheduled because of weather damage to the golf course at the Andover Country Club. The new date is Tuesday, June 1.
Papa John’s Int’l. has named Jude Thomas as co-chief executive officer to serve with the brand’s founder and spokesperson John Schnatter.
’Indian Meets Chinese’ - an Indo-Chinese restaurant has opened in the Back Bay of Boston.
   
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C-STORE NEWS
NECSA Selects Top Operators At Annual Trade Show
Ramz and Ann Khoury, owners of Engine FoodLane in North Kingstown, R.I., and Mike Kane, store manager of the Andover, Conn. Xtramart, walked away with first place awards at the New England Convenience Store Assn ’s 2009 Store Operator of the Year Awards. The awards were presented during an award night cocktail reception held at the DCU Center in Worcester, Mass., on April 27, the night before the NECSA Trade Show.
The Second Place Store manager award was presented to Rafal Eliminowicz of the Metacom Avenue Cumberland Farms location in Bristol, R.I. Donna Filipe, manager of the Swansea, Mass., Cumberland Farms at 520 Wilbur Avenue, was presented with the Third Place Store Manager Award.
Additional awards went to: Dan McSheffrey’s of McSheffrey’s, Merchandising Award Owner of the Year; Teresa Superior of Cumberland Farms, Merchandising Award Manager of the Year; Henry Eno of Citgo, Community Service Award Manager; Kathleen and Richard Brissette of Tedeschi Food Shops, Community Service Award for a Franchisee Owner; Pam Barrett of Tedeschi Food Shops, Store Operations Award; Linda Calver of Cumberland Farms, Leadership Award Manager; and Trevor Thomas of Gulf Express, Customer Service Award Manager.
NACS Delivers 2 Million Signatures To Congress
NACS delivered two million consumer signatures to Congress last week , telling them that hidden credit and debit card swipe fees are unacceptable. The signatures that were collected at convenience stores across the country earlier this year make it the largest collection of consumer signatures ever for a public-policy issue. Combined with the 1.7 million signatures that 7-Eleven franchisees collected and delivered to Congress last September, 3.7 million consumers have weighed in on this issue over the past year.
Credit and debit card swipe fees — called “interchange fees” by the big banks that set these rates — are a percentage of each transaction that Visa and MasterCard and their member banks collect from retailers every time a credit or debit card is used. These fees average about 2 percent in the United States, the highest rate in the industrialized world. Surprisingly Last week, Visa Europe reached a settlement with the European Union regulators and cut the interchange fees by 60 percent.
The credit card interchange market “is rigged to guarantee big money for the largest banking institutions” and “tighten the noose on businesses,” NACS Vice Chairman Dave Carpenter told Congress in reference to the damage that credit and debit card interchange, or “swipe,” fees cause to small, community businesses. Mr. Carpenter testified last week before the U.S. House Judiciary Committee.
Sheets Wins Right To Sell Beer At Convenience Restaurant
Sheetz Inc. won the right to sell beer at its Convenience Restaurant in Altoona, thanks to today's ruling by the Pennsylvania Liquor Control Board (PLCB). "We are happy that the PLCB has decided to grant Sheetz the right to sell beer at our Altoona Convenience Restaurant," said Stan Sheetz, president and CEO of Sheetz, Inc. "While we maintain that Pennsylvania's beer laws must be reformed, this decision allows us to follow today's state law while serving our customers who wish to buy beer at Sheetz."
In 2004, the PLCB granted Sheetz a license to sell beer at its convenience restaurant at 1915 Pleasant Valley Boulevard in Altoona. At that time, the PLCB indicated Sheetz did not need to sell beer for on-premise consumption. However, the Malt Beverage Distributors Association (MBDA) filed suit to stop the sales, and the Pennsylvania State Supreme Court revoked the company's beer license, requiring it to allow customers to drink on premise, at the store. In response, Sheetz re-applied stating that they would allow for on-premise consumption at the Altoona location. "Today's ruling is the end of that process, but not the end of the battle," Sheetz said.
C-Store Latest Word…
NACS introduced a new and free mobile app that will enhance the attendees experience at NACStech and the NACS Show. NACStech, a technology solutions event for the convenience and petroleum retailing industry, will take place May 5 to 7 in New Orleans. More than 1,200 attendees are expected for NACStech, which features nearly 100 exhibits. Exhibitors can use the mobile app to create dynamic advertising capabilities, video, banner ads and opportunities to provide coupons to increase booth traffic. Attendees will also be able to vote for their favorite technology or service at NACStech via the mobile app.
Cumberland Farms announced the kickoff of its summer iced coffee and said that customers can get their iced coffee free on Fridays from May 7 through June 4.
Quick Check, a 1220 C Store chain in New Jersey and southern New York was recognized as one of the Best Places To Work by NJ BIZ, a New Jersey business publication.
   
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NEW CHANNELS
Bias Suit Advances Against Wal-Mart
A federal appeals court ruled last week that a gender discrimination suit lodged against Walmart can go forward in a class action case. The suit alleges that Walmart paid its female employees less than male workers and also promoted fewer of them.
In a 6-5 decision, the appeals court judges did not decide on whether discrimination took place at Walmart but only that women workers could band together to sue the company. The case covers females working at Walmart since 1998, which would be an estimated 1.6 million, potentially the biggest U.S. sex discrimination case in history. But the appeals court decision shut out women employees who were no longer employed by Wal Mart before the lawsuit was filed nine years ago.
Jeff Gearhart, executive vice president and general counsel for Walmart said, “We are pleased that the court agreed with our position on several critical issues. The court significantly reduced the size of the originally certified class by as much as two-thirds. Finding that the trial court 'abused its discretion,' the appeals court also set aside the ruling on punitive damages. We disagree with the decision of the sharply divided 6-5 court to uphold portions of the certification order, and are considering our options, including seeking review from the Supreme Court.
Vitasoy USA Names Rolnick As V.P. Of Marketing
Susan Rolnick has been promoted to vice president of marketing for Vitasoy-USA. Mrs. Rolnick served as marketing director since joining the company last year.
In her new position, Ms. Rolnick will be responsible for Vitasoy-USA marketing. This includes management of the company’s signature brand Nasoya. Nasoya includes new organic Tofu-Plus, all-natural Silken Style Creations, fresh, all-natural pasta noodles and wraps, and the sandwich spread Nayonaise.
Before coming to Vitasoy-USA, Ms. Rolnick held director level positions at ConAgra Foods where she focused on the natural and healthy brands in their Lightlife Division (She also held brand management positions at International Home Foods, Inc., where she worked with brands such as Jiffy Pop, Pam cooking spray, Guldens mustard and Chef Boyardee, among others.
Ms. Rolnick’s expertise includes national brand strategy development, trade group management, new product launches, and sales and marketing department management.
Meat Prices Could Rise This Summer
The demand for more ethanol has caused feed costs to soar, resulting in farmers downsizing hog and cattle herds.
Because of that, U.S. meat prices could reach record highs this summer. In April wholesale pork prices leaped 25 percent to 90.68 cents last week, according to U.S. Department of Agriculture (USDA) data. Beef jumped 22 percent this year to reach $1.69 per pound last week, the highest price since July 2008. In March, chicken gained the most in 20 months With the improving economy, grilling season resuming, and Russia and China letting in more U.S. imports, demand for chicken breasts, pork chops and steaks is growing.
However, domestic meat supplies could fall to a 13-year low because of high corn prices, which caused ranchers to trim herds
Ethanol producers point to “wild speculation in the markets and the surge of index funds” and not an increase in corn use for fuel as the reason for higher meat prices, Experts predict retail prices could reach record levels during the next three months with the summer grilling season.
New Channels Latest Word…
The Red Sox wives will sponsor a two day can and cash drive for the Greater Boston Food Bank on July 30 and July 31. This year the food bank’s focus is on securing nutrient rich foods such as canned lean meats, peanut butter, canned or dried beans, canned or dry fruits and vegetables, shelf stable dairy products and non perishable whole grains. Last year a similar drive netted $25, 961 and 5, 550 pounds of food from Red Sox fans in two days.
Wegmans Food Markets have begun using hydrogen fuel cell powered pallet trucks at its Pottsvile, Pa warehouse.
Winn-Dixie Stores has begun using its WD RxConnect at 62 of its pharmacies. The translation service helps the company’s pharmacists share information with non-English speaking customer.
   
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