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Archive for Week of May 11, 2010
SUPERMARKET NEWS
Shaw’s Union Rejects Latest Offer Involving C&S
Judy Chong, Shaw’s spokesperson, said the company provided the union with a new offer as the two sides met to attempt to break the over two month impasse between the Methuen, Mass. perishable center workers and the retailer. Shaw’s told the union that the company is interested in accepting an offer from C&S Wholesale Grocers to handle some categories that are currently managed by the Methuen distribution center.
“We are disappointed that the union is still unwilling to realistically approach these negotiations and the current business environment. At the same time, we have a responsibility to protect our business and the livelihoods of our 25,000 other associates in New England – including those who have returned to work during the eight-week strike or become permanent replacement workers,” said Ms. Chong.
In response, United Food and Commercial Local 791 said that Shaw’s had rejected the union’s own newest proposal and countered with a “very regressive proposal that is significantly worse than their two previous packages.” Local 791 has filed an unfair labor practice against Shaw's with the National Labor Relations Board stating the company is bargaining in "bad faith."
Peter Derouen, union spokesperson, said Shaw’s package provided “drastic wages' decreases, takes away the workers' health care plan, the pension plan for new employees, seniority rights, and also contains measures that would result in the loss of jobs.” The union is also not pleased with Shaw’s intention of moving the meat and deli work out of the Methuen facility and subcontracting it to C & S Wholesalers, which the union believes will reduce the work performed by bargaining unit employees by 50 percent.
Survey Finds Independents Not Ready For Coupon DataBar Start
An online member survey conducted by the National Grocers Assn. (NGA) has found while awareness of the upcoming GS1 DataBar sunrise date (Jan. 1, 2011), for coupons is high among independent retailers, 38 percent said they would not be ready by the start date. The NGA reported that 88 percent of survey respondents were aware of plans to replace the UPC-A and 128 symbols on coupons with the GS! DataBar.
Of those surveyed, 49 percent were not ready for GS1 DataBar only coupons. Only 27 percent had POS Scanning equipment that was ready to scan the DataBar and 35 percent said they would be ready by the January 2011 date. The NGA is recommending that retailers start assessing where they are in terms of GS1 DataBar readiness and what their next steps should be. To help with the transition, GS1 U.S. of Lawrenceville, N.J. has created a starter kit that provides retailers with tools and information they need for adoption of the GS1 DataBar.
Front End Checkout Opportunities Key Topic At FMI 2010
New research about shoppers and the front-end checkout area, will be released at FMI 2010 on May 11 in Las Vegas, Nev. The study is sponsored by Mars Chocolate North America, a division of Mars, Inc., Time-Warner Retail Sales & Marketing, a division of Time Warner, The Wm. Wrigley Jr. Company and The Coca-Cola Company.
Checkout sales (items at the checkout area) represent more than 1 percent of total grocery sales according to the research. The study found that retailer sales performance in the front-end checkout area varies widely based on the merchandising practices of individual stores. The research defines a set of best practices that can help retailers realize up to 30 percent or more improvements in sales and profits at the front-end.
The study suggests that retailers should manage the front-end as a department with a dedicated manager because it found that the contribution from front-end checkout sales is larger than all but a few major product categories and even some entire departments. The research was conducted in partnership with leading grocery retailers representing more than 3,200 stores and 12 percent of U.S. grocery volume. More than 1,300 consumers were interviewed about their attitudes and buying behavior at regular, express and self-scan checkout lanes for the study.
Retail Latest Word…
Kayem Foods, Chelsea, Mass., which manufactures al Fresco, a chicken sausage brand, last week unveiled a new brand look logo, advertising campaign, product packaging and website.
Stop & Shop announced it will distribute $1 million to local schools on behalf of it’s A+ Bonus Buck shops. In its first year, more than 148,133 store customers registered their Stop & Shop cards to raise money for local schools.
The industry’s Beef Checkoff program is advertising 29 lean cuts of beef in an ad campaign for retailers.
Nestle’ USA Baking has voluntarily recalled select Nestle’ Carnations Famous Fudge Kits because some of the kits were distributed without a complete allergen precautionary statement.
   
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FOODSERVICE NEWS
NYC Considers Mandate For Paid Sick Leave
According to the National Restaurant Assn. New York City is considering a bill to require businesses with 20 or more employees to provide an hour of paid sick leave for every 30 hours an employee works and up to nine paid sick days a year. Smaller businesses would have to provide up to five paid sick days a year. The New York State Restaurant Assn. has opposed the bill and is urging its members to write to the New York City Council. The idea of paid sick leave has been introduced in 18 states. Washington D.C. and San Francisco have set paid sick leave rules for private sector employees. Recently, Connecticut’s legislature adjourned without passing the mandate.
U.S. Senator John Kerry Files Bill To Cut Small Brewer Taxes
U.S. Senator John Kerry introduced legislation today to reduce the beer excise tax for America’s small brewers. This legislation, will help create jobs at more than 1,500 small breweries. Massachusetts is home to more than 40 small breweries, including Sam Adams.
Some of the bill highlights include the following.
The small brewer tax rate was established in 1976 and has never been updated. The ceiling defining small breweries is 2 million barrels and the legislation would increase it to 6 million barrels.
Currently, a small brewer that produces less than 2 million barrels of beer per year is eligible to pay $7 per barrel on the first 60,000 barrels produced each year. Reducing this rate to $3.50 per barrel would provide approximately $18 million per year to help strengthen small brewers.
Once production exceeds 60,000 barrels, a small brewer must pay the same $18 per barrel excise tax rate that the largest brewer pays at over 100 million barrels. Lowering the tax rate to $16 per barrel on beer production above 60,000 barrels up to two million barrels would provide small brewers with an additional $26.2 million per year that would be used to support significant long-term investments and create jobs by growing their businesses on a regional or national scale.
2010 NRA Spring Show Previewed
National newscaster and commentator Charlie Rose will share insights into current issues and events, based on his years of conversations with the biggest newsmakers in the world, at the National Restaurant Association’s Restaurant and Hotel-Motel Show. His keynote address will kick off the show on Sunday, May 23, at Chicago’s McCormick Place at 2 p.m. The show runs May 22-25.
One unique aspect of the show is that attendees at the show will have exclusive opportunities to receive one-on-one design and management advisory consultation services from leading experts all four days of the event. The Ask the Design Experts service provides Show attendees free consultations with Foodservice Consultants Society International (FCSI) members to discuss personalized solutions for front-of-the-house, back-of-the-house and management advisory issues.
The show is the largest single gathering of restaurant, foodservice and lodging professionals. The event attracts tens of thousands of attendees and visitors from all 50 states and more than 100 countries, For more information visit the Show website at www.restaurant.org/show.
Food Service Latest Word…
The New Hampshire Lodging & Restaurant Association is urging their members to call N.H. legislators to remove a local rooms and meals tax option from the state budget.
The Mass. Restaurant Assn. is sponsoring a “Eat, Drink,” and Be Social Seminar Monday, May 24 at Technique’s Le Cordon Bleu in Cambridge, Mass. The half day symposium features local and national thought leaders who will speak about social media beyond Twitter and Facebook. For more information, log onto www.eatdrink.event.brite.com.
D’Angelo Grilled Sandwiches and Papa Gino recently announced that more than $140,000 for Easter Seals and The Genesis Fund was raised by selling more than 140,000 coupon books during a month long campaign.
   
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C-STORE NEWS
Pantry To Sell Off 80 Sites; Begins Food Service Focus
The Pantry of Cary, N.C., made two major news items last week, declaring it will sell off nearly 80 properties to preferably independent retailers and also announced a Fresh Food Initiative capital project designed to improve the breakfast, lunch and snack experiences with coffee as the anchor of the project.
Most of the stations are currently branded as Kangaroo, Shell, Chevron, CITGO, Mobil, BP and Texaco and stores are located in a variety of market such as Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia.
These stations do not fit with the company’s current strategic plans but could be excellent locations for the right buyers such as national distributors, independent operators, or other retail businesses.
Terry Marks, company chief executive officer, said in a financial news conference, that the on the go meals represent a critical growth for the company. He said more than 100 stores will be “refreshed” before the end of the calendar year and will be will be highlighted by a significantly improved coffee program. On the food side, the chain stores will offer a broader assortment of pastries, breakfast sandwiches, and fresh fruit. Newer refrigeration cases will offer a wide variety of sandwiches, salads, and fruits.
NYACS Ready For Annual Spring Show
With a theme of “Going for the GREEN,” New York Association of Convenience Stores will host its annual spring trade show Wednesday and Thursday, May 12-13 at the Oncenter in Syracuse, N.Y. Here are some program highlights.
Linda McKenna will present a seminar for C-Store operators and managers on how to hire employees who can actually make you money. “Building a C-Store GREEN Team” will be presented Thursday, May 13, prior to the opening of trade show exhibits at 11 a.m.
Retail attendees will be able to choose from four concurrent breakout workshops (food service, loss prevention, technology and energy) at 9 a.m. May 13 at the Oncenter:
Fran Duskiewicz, senior executive vice president of Nice N Easy Grocery Shoppes and a member of the National Association of Convenience Stores Board of Directors, will provide insights and analysis of the 2009 National Assn. of Convenience Stores (NACS) State of the Industry report at 10 a.m. on May 13 at the Oncenter
Xtra Mart Convenience Stores Regional Manager Gary Mikutel and retired McLane Co. Area Sales Manager Tom Purcell have been elected to the New York Convenience Store Hall of Fame. They will be inducted by the New York Association of Convenience Stores at its annual Chairman’s Banquet on the evening of May 13.
Rutters Starts Mobile Couponing Through IPhone App.
Rutter’s Farm Stores last week announced the rollout of mobile couponing via its iPhone application, which is available as a free download from www.rutters.com. Rutter’s mobile coupons will vary over time to include offers for cents off gasoline or other items, buy-one-get-one-free, or even free items. Rutter’s has been working with suppliers on this technology and the first set of coupons will be sponsored by the Hershey Co., Pepsi and Rutter’s Dairy.
“We believe that Rutter’s is the first convenience store in the United States to introduce coupons on a mobile phone,” said Scott Hartman, president and chief executive officer of Rutter’s Farm Stores.Customers who open the Rutter’s iPhone app will find coupons under “deal alerts.” When a customer clicks “use it now,” a coupon appears on his or her screen for a short amount of time, during which it can be scanned at the regular checkout – without any paper required.
C-Store Latest Word…
The Kentucky Petroleum Marketers Assn. received word of a price gouging executive order issued by Kentucky Governor Steve Beshear. It said that normal price increases from a supplier for motor fuel is allowed but “If you increase prices grossly in excess of the prices prior to the emergency, you are in violation of the order.” The price gouging order is in effect for the entire state and runs for 30 days. The order comes after strong storms producing tornadoes, severe thunderstorms, and heavy rainfall.
PepsiCo and Tampico Beverages have announced an agreement to distribute Tampico Plus fruit flavored beverages via PepsiCo’s direct store delivery system.
Late last week, the National Assn. of Convenience Stores announced that PCATS (Petroleum and Convenience Alliance For Technical Standards) will become part of NACS.
   
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NEW CHANNELS
Gulf Oil Spill Won’t Have Major Effect On Seafood Sales
The recent Gulf Oil oil spill will have an effect on Louisiana seafood but should not cause shortages of seafood nor extreme price fluctuations in the seafood market. It will have an effect on Louisiana fisherman including shrimp trawlers and oystermen. Louisiana produces only about 1 percent of the seafood Americans eat.
The National Fisheries Institute confirmed last week that the spill is not expected to cause shortages of seafood or wild price fluctuations in the seafood markets.
It is expected the greatest effect will be on Louisiana seafood such as the oyster and crab industry. Fifty percent of the area’s oyster beds and 70 percent of the area crabs are harvested in the path of the oil spill. The rest of the state’s total seafood production is fished on the west side of the Mississippi. These waters are unaffected and still remain open.
Oakhurst Dairy Launches ‘Living Natural Goodness’ Plan
Oakhurst Dairy announced last week that it has formed a three-way partnership that brings together local business, a statewide not-for-profit initiative, and a leading nonprofit in a new venture called “Living Natural Goodness.” The initiative encourages physical activity and healthy eating habits.
In New Hampshire, Oakhurst has partnered with Boys and Girls Clubs and the Foundation for Healthy Communities – which organizes Walk New Hampshire – to motivate and encourage kids and their families to make exercise and fitness a regular part of their daily lives.
Oakhurst President Stan Bennett said, “Through advertising and other means, Oakhurst will help raise awareness of these community efforts throughout New Hampshire,” Bennett said. “We have long been involved with Boys and Girls Clubs, and this means we’ll be able to make an even bigger impact on the lives of thousands of families across New Hampshire.”
The Walk New Hampshire program, celebrating its fifth year, is a statewide event that promotes health and fitness through walking. Children from the Boys and Girls Clubs will form teams and track their walking mileage, with each club setting a goal of logging enough miles to walk virtually the length of the state – 190 miles. Oakhurst will provide logbooks and posters to help the kids involve their families and friends as they keep track of miles. Oakhurst will also make a monetary contribution to each chartered Boys and Girls Club that reaches its walking mileage goal. The next Walk New Hampshire event is June 4.
P&G Acquires Natura Pet Products
The Procter & Gamble Companyhas signed an agreement to acquire Natura Pet Products, Inc., a privately-held pet food business based in Davis, California.
According to officials , the move enables P&G to expand into the "holistic and naturals" segment of the pet food category, complementing P&G's current Iams and Eukanuba brands and helping the company advance its overall growth strategy of "reaching more consumers in more parts of the world more completely." Natura's brands include Innova, Evo, California Natural, Healthwise, Mother Nature and Karma. These brands are sold in a limited number of pet specialty stores and through veterinarians, mainly in the United States and Canada.
New Channels Latest Word…
Just days before the water equipment break caused 30,000 residents and businesses in Massachusetts to boil water, Concord, Mass. voters voted to ban the sale of bottled water throughout the town, effective Jan. 11, 2011. Hailed as a victory by environmentalists, the ban was sought by town residents to stem what they believe is a growing problem with litter from empty water bottles not being properly disposed of.
Polar Beverages is credited with working with the Mass. Emergency Management Agency in working to get trucks of bulk water in the Greater Boston area.
C&S Wholesale Grocers has named Maria Precht of Maryland as its Volunteer of the Year. A human resources supervisor for C&S, Ms. Precht volunteers with children and homeless families and recently distributed 1,000 bags of school supplies to children at local schools. She also teaches healthy eating choices to children in her community.
   
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