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Archive for Week of August 17, 2009
SUPERMARKET NEWS
U. S. Manufacturers Alert Feds On Possible Sugar Shortage
Published reports from last week indicate that some of the country’s largest brands including Kraft, General Mills, Hersey Co. and Mars have alerted the U.S. Agriculture Dept that the country could experience sugar shortages unless the Obama administration eases import restrictions on sugar.
Without freer access to cheaper imported sugar, the companies warned that consumers could face higher prices and food manufacturing jobs may be at risk unless the U.S. Agriculture Dept. allows manufacturers to import more tariff-free sugar. Current important quotas now limit the amount of tariff free sugar the food companies can important in a given year.
Sugar prices, both in the U.S. and globally, have soared to higher levels. Prices are up because in part the world is consuming more sugar than farmers are producing. Brazil, the world’s biggest sugar producer is diverting huge amounts of its sugar cane crop to making ethanol fuel. In addition, one third of the U.S. corn crop is made into alternative fuel. A monsoon in India has reduced its production forecast.
The U.S. Agriculture Dept. said that it will continue to review market conditions to ensure an appropriate safety net for growers as well as a stable supply environment.
Weis Markets Second Quarter Earnings Shoot Up More than 18 Percent
Weis Markets, Inc., a mid-Atlantic retailer, recently reported an 18.5 percent increase in its second quarter net income as compared to the same period a year ago. During the 13-week period ending June 27, 2009, the company generated $15.2 million in net income compared to $12.8 million for the same period a year ago. The Company’s second quarter sales increased 2 percent to $615.4 million, compared to $603.4 million in 2008, while the company’s comparable sales were up 2.4 percent.
“We made significant investments in our sales programs during the second quarter which helped drive the increases in our sales and net income,” said David J. Hepfinger, Weis Markets’ president and chief executive officer. “In addition, our best of class private label program continues to generate strong sales, exceeding the national average, due to the depth and variety of our program and the value driven needs of our customers. Our second quarter results were also positively impacted by the improved sales performance of our perishable departments, particularly in meat and the continued improvement in our store-level operating performance.” Weis Markets, operates 154 stores in five states: Pennsylvania, Maryland, New Jersey, New York and West Virginia.
Rollstream Works With Ahold, BI-LO, & Bozzuto’s On Key Business Information
RollStream Inc., a provider of enterprise community management solutions, recently announced partnerships with Ahold USA, Bozzuto’s, Tesco, Sainsbury and BI-LO to communicate with its entire community of direct food and general merchandising suppliers.
“In these tough economic times, it has never been more important for grocery retailers to drive profitable partnerships with their suppliers,” said Kristin Muhlner of RollStream. “We are seeing an increased number of supermarkets select RollStream to create strategic business-to-business networks that improve relationships within their global supply chains. The need to speed time to market and reduce administrative costs is no longer a nice to have but rather is business critical.”
Ahold is using RollStream to store key business information about its 1,400 direct suppliers via a self-maintained, supplier directory. Ahold also plans to leverage RollStream to manage large-scale rollouts of strategic technology initiatives, execute operational supplier compliance projects within the business divisions, and share strategic supplier information management across operating divisions in the upcoming months.
Bozzuto’s, will use RollStream for master data management within its own private, secure, policy-driven RollStream Supplier Community as well as to register new vendors regularly. BI-LO, has renewed its agreement with Rollstream to continuing using the collaboration for resolving item cost dispute issues across thousands of trading partners and distributors. BI-LO is organizing key vendor pricing dispute information, tracing communications shared and resolving these disputes on a bi-weekly basis.
Retail Latest Word…
Jamba Juice Co. has entered into a license agreement with The Inventure Group to develop a line of blend and service frozen fruit smoothie kits for retail grocery distribution.
A new contract was announced between more than 4,000 associates of the United Food & Commercial Workers Union and Kroger in the Dayton, Ohio area.
The New England Produce Council has announced a kick off tailgate dinner on Sept. 23 at Gillette Stadium in Foxboro, Mass., which has an interactive event. The PMA Fresh Connections seminar at 3:30 p.m. will focus on how companies within the produce industry are doing business in a tough economy.
   
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FOODSERVICE NEWS
Sonic Drive-In Restaurant To Debut In Peabody, Mass.
Sonic Drive-In a long time Southern fast food restaurant, plans to open its first New England unit in Peabody, Mass., by the beginning of September. Its niche is rollerskating carhops who deliver the food to the parked vehicle. Based in Oklahoma, the company has 3,500 drive in units and some of its menu items include Toaster Sandwiches on thick Texas Toast, hot dogs with chili and cheese, onion rings, tater tots and many varieties of frozen desserts and fountain drinks. The Peabody unit will have 20 canopied stalls in which customers park their cars and push a button to place their orders. It will also have a drive through service and a canopied seating area for 50 people that will be heated in colder months.
U.S. Foodservice- Metro N.Y. Grows With New Distribution Center In Perth Amboy, N.J.
Contributing to new growth for U.S. Foodservice-Metro New York has been the recent opening of a new distribution facility in Perth Amboy, N.J. In addition, the Metro New York division has grown by 120 new jobs at its Perth Amboy location, an employment increase of 46 percent. Another 20 jobs are expected to be added by the end of the year.
At 615,000 square feet, the Perth Amboy facility is the largest broadline food distribution center in the Northeast, featuring state of the art construction, eco-friendly and high-efficiency lighting and refrigeration systems and a first-class culinary innovation center.
"U.S. Foodservice decided at the start of this recession that the best strategy for our customers and associates would be to invest in the long-term success of our Perth Amboy, NJ operations. With this strategy we are able to continue to invest in and grow our workforce, and also provide our customers with quality products and valuable services that are important to winning in a challenging economy," said Chuck Gannon, president of U.S. Foodservice-Metro New York.
He said that by expanding its sales targets and making other investments in its Perth Amboy operations, U.S. Foodservice-Metro New York has improved its market position as a provider of products to restaurants, healthcare institutions, schools, and other foodservice operators.
Maine Fare to Open with 15 Chefs Tasting Event
On Friday, Sept. 11, 15 award-winning Maine chefs will team up for a “Gala Tasting Under the Stars” on the water at the Camden Yacht Club in the Camden-Rockport part of Maine. A kickoff event for Maine Fare, the evening gala. will pair Maine’s locally sourced foods with Maine wines, spirits and beers to create 15 different tasting courses.
Maine Fare, an all-weekend event on Sept. 11-13, is a celebration of Maine’s abundance of incredible local food and drink, from farm to table. This year’s Maine Fare events showcase the state’s natural culinary resources by putting farmers, artisans, chefs, food writers, culinary experts together.
The Gala Tasting Event will feature chefs from across the state. Sam Hayward of Fore Street in Portland will lead the team of creators. Other chefs hail from far and wide: Chase’s Daily in Belfast, Cleonice in Ellsworth,El Frijoles in Sargentville, Francine Bistro in Rockland, Fuel Restaurant in Lewiston, Natalie’s Camden Harbour Inn in Camden, Sea Glass Inn by the Sea in Cape Elizabeth, Solo Bistro in Bath, Stonewall Kitchen Cooking School in York, Supper at Nebo Lodge on North Haven, The Burning Tree in Mt. Desert, The Edge Restaurant at Inn at Ocean’s Edge in Lincolnville and The Farmer’s Table in Portland.
Food Service Latest Word…
Boston’s Summer Restaurant Week continues through Aug. 21 with a record number of 215 restaurants participating, a 23 percent increase over the summer of 2008. The participating restaurants are located in 14 different Boston neighborhoods and 18 cities and towns beyond Boston. Diners can select three course priced fixed lunches for $20.09 and three course dinners for $33.09, excluding beverage, tax, and gratuity.
Foxy Acres Brand has appointed Craig Jorison as regional vice president of sales. He brings over 30 years of food service distribution to F.A. B., a national foodservice sales, marketing and purchasing cooperative for independent distributors.
The Mass. Restaurant Assn. Annual Clambake will be held Aug. 18 at Woodmans of Essex, beginning at 6:00 p.m.
   
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C-STORE NEWS
Surprise Court Developments Arise In N.Y. Bottle Bill Expansion
In surprise developments late last week, a federal judge partially lifted the court injunction on New York’s bottle bill expansion, but left in place the freeze on of deposits on bottled water.
“To the extent that the court has enjoined the Amendments to the Bottle Bill impacting bottled beverages other than bottled water, that injunction is hereby lifted,” said U.S. District Court Judge Deborah Batts. This means that effective immediately:
- New York can start capturing 80 percent of the unredeemed deposit revenue from soda bottlers and beer distributors.
- The handling fee paid by bottlers and distributors to retailers on returned soft drink and beer containers increases from 2 cents per container to 3½ cents.
- Retailers are required to display the “Bottle Bill of Rights” and a sign warning against redemption of out-of-state containers.
- Local governments, state Department of Agriculture & Markets, and state Attorney General’s Office all can now enforce bottle bill provisions.
Judge Batts kept in place the injunction on the clumsy requirement that all deposit containers sold in New York be labeled with a New York-only UPC code.
In her decision, she hinted strongly that she is prepared to lift the rest of the injunction in October. She ordered the parties to return to her courtroom on October 22, 2009, at which time the bottle water companies will need to convince her to extend the injunction.
The New York Assn. of Convenience Stores (NYACS) is urging retailers to begin planning now for deposits on bottled water effective sometime in November or December. Those with private-label water should contact their supplier immediately to discuss transition issues.
Irving Oil Launches New Charitable Giving Campaign Throughout New England
As Irving Oil, a energy refiner and provider in the Northeast, expands into the Southern New England region, the organization has announced a new charitable giving campaign.
“We want our new neighbors to know that we’re not just a place to fill up your tank, we’re a new part of this community, and we want to make things better here, too,” said Harry Hadiaris, general manager for Irving Oil Marketing.
The campaign, which introduces Irving as “new to the neighborhood, not so new to gasoline or to being neighborly” (a nod to the company’s beginnings in nearby Atlantic Canada in the 1920’s), features an online contest focused on giving back.
By simply searching irvingoil.com/neighbor, individuals are invited to nominate local nonprofit programs or organizations they think Irving should support. A total of 12 nonprofits will each receive a $2000 grant from Irving, winning individual nominators will also receive a $200 Irving gas card and the first 1000 people who nominate their favorite charity will be thanked for their participation with an Irving fuel discount card worth 25 cents off per gallon. The contest runs through August 31.
The winners will be awarded in September at their own local Irving stations throughout Massachusetts, Rhode Island, New Hampshire, Maine, Vermont and Connecticut.
Three CEOS To Lead NACS Convention Show Panel
Chet Cadieux, chairman, president and chief executive officer of Quik Trip Corp. of Tulsa, Okla., and Dean Durling, president and chief executive officer of Quick Chek Corp. of Whitehouse Station, N.J. , have been announced as panelists for the Oct. 22 NACS Show General Session “A Tale of Two Retailers.”
The panel presentation will take a close look at how two successful companies continue to innovate and grow their customer bases, with practical examples for other retailers to consider. The session will be moderated by Steve Sheetz, chairman of the board of Sheetz Inc. of Altoona, Penn.
Previously, former U.S. President Bill Clinton was announced as an Oct. 23 Closing General Session speaker and travel industry executive Roger Dow was announced as an Oct. 21 General Session speaker for NACS Show. The NACS Show will take place Oct. 20 to 23 at the Las Vegas Convention Center.
More than 21,000 attendees and 1,200 exhibiting companies are expected to attend the NACS Show. Registration is now open at www.nacsshow.com. The early-bird registration deadline is August 31.
C-Store Latest Word…
Wonder Bread, owned by Interstate Brands, is advertising that its Wonder Classic and Wonder classic Sandwich breads provide the same amount of calcium as eight ounces of milk in two slices of bread.
Dr Pepper Snapple Group reported a 3 percent sale volume growth with Dr. Pepper volume up 4 percent. The Core 4 brands of 7 Up, Sunkist, A&W, and Canada Dry were down 2 percent. Expanded third party bottler distribution added 11 million cases to Crush, more than doubling the business. Hawaiian Punch volume increased 18 percent on continued strong promotion.
The CN Brown Annual Golf Classic will be Aug. 18 at the Springbrook Golf Club in Leeds, Maine.
   
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NEW CHANNELS
First Hispanic Mass. Warehouse, ‘Más Club’ Opens in Houston, Texas
Más Club, owned by the Sam’s Club Division of Walmart, opened its doors on Aug. 6 in Houston, Texas and it is the first membership warehouse club to specifically offer consumers a wide assortment of Hispanic items. According to company officials, Más Club will have a positive impact on the overall supply chain of Hispanic items sold in the United States
The goal of Más Club, according to company officials, is to provide imported and internationally known brands at “great values” and in package sizes that make sense for families and small businesses. Its product assortment includes fresh produce and meats, including a variety of cuts, and a full-service meat and seafood counter. The club carries a unique selection of Hispanic foods and brands including beverages, spices and candy for both family use and small business resale. To enhance the member experience, the café will have a menu including traditional beverages and entrees, as well as an outdoor seating area. Additional areas of business provide new services, such as a health care clinic and a Barri money center.
Whole Foods Market & Chef Combine For Online Toolbox For Healthier School Lunches
Whole Foods Market and Chef Ann Cooper have joined forces to transform lunch in schools across the country with the "School Lunch Revolution" campaign.
This effort aims to enable schools to revolutionize and improve the way children eat. The free, first-of-its-kind Lunch Box website - thelunchbox.org - provides the resources for food service directors to make tangible changes in their cafeteria menus.
The website contains a free set of resources available to help schools replace frozen processed foods with fresh, natural, made-from-scratch foods in a realistic, cost-effective manner. Tools include: recipes that work for schools of all size and can be nutritionally analyzed and tested; resources for procuring real, natural foods, regionally and locally from smaller vendors to create local food economies; training videos that cover topics ranging from cooking techniques to food safety; educational tools for parents and children.
Research Finds PCI DSS Awareness High Among Small Retailers
Though small retailers are aware of Payment Card Industry Data Security Standards (PCI DSS), they feel frustrated and bewildered with the complex requirements, according to a survey of small retailers by ControlScan, the National Retail Federation (NRF) and the PCI Knowledge Base.
According to the survey of 220 small retailers, 86 percent of companies feel “somewhat” or “very familiar” with PCI DSS. They also understand the importance of security, with 88 percent of them listing data security as a “high” or “medium” priority. While small retailers both understand the importance of data security and are aware of PCI DSS standards, respondents expressed frustration with understanding, implementing and paying for compliance.
Small merchants who have never been breached may have an unrealistic expectation of their security. According to the survey, 72 percent of small retailers believe the risk their company faces from a data compromise is “low” or “not possible,” though merchants who have been breached tell a different story. However, 67 percent of previously breached respondents considered the risk from a data compromise to be “high” or “medium,” and, as a result, typically spend more to help secure their businesses.
“Small merchants often do not understand the severe consequences of a data breach and are understandably overwhelmed with the intricacies of becoming compliant in the first place,” said NRF Chief Information Officer David Hogan. “Until industry service providers and the PCI Security Standards Council make compliance easier to understand and less complex to implement, many small merchants will likely continue to be frustrated and bewildered, causing some of them to abandon the idea of compliance altogether.”
New Channels Latest Word…
According to the Mass. Food Assn., the Northeast Recycling Council and the Mass. Dept. of Environmental Protection recently launched a Mass. material Trader a free on-line material exchange network funded by the Federal Environmental Protection Program. It can help businesses wondering what to do with surplus inventory, manufacturing byproducts, and even office furniture. The website is www.massmaterialtrader. com. To list an item, you must create a company profile firsT.
Two doctors from Boston hospitals concluded in a research study that low doses of aspirin can not only keep colon cancer from coming back but it also can lower the risk of dying from the disease.
Five years after renting its first DVD, Redbox, the fully automated DVD rental provider is set to record its half billionth DVD this past weekend.
   
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Copyright Griffin Publishing Co. 2009
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