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Archive for Week of Sept 12, 2009
 SUPERMARKET NEWS
Delhaize Enters Non-Binding Offer for Food Lion To Acquire Certain BI-LO Assets
The Delhaize Group of Belgium has entered into a non-binding Letter of Intent with BI-LO, LLC to acquire a substantial majority of BI-LO's assets, including associated inventory, for a purchase price of $425 million.This announcement was made in the context of BI-LO's bankruptcy proceedings in the United States Bankruptcy Court for the District of South Carolina.
BI-LO of Mauldin, S.C., is a food retailer that currently operates 214 stores in North Carolina, South Carolina, Tennessee and Georgia and employs approximately 15,500 people. On March 23, 2009, BI-LO and certain of its affiliates filed voluntary petitions for Chap. 11.
It is the intent of Delhaize Group to integrate the included BI-LO assets in the network of its wholly owned subsidiary Food Lion, LLC. Food Lion, LLC is a food retailer with more than 1,300 stores in 11 U.S. states and more than 74,000 associates.
The non-binding offer is subject to the completion of the Bankruptcy Court approvals. One issue under consideration is how a combined BI-LO and Food Lion would impact market share and the review of the Federal Trade Commission.
Big Y Foods Names Eric Swensen New Frozen Food and Dairy Director
Big Y Foods of Springfield, Mass., has appointed Eric Swensen as director of frozen food and dairy. Mr. Swensen will be responsible for all aspects of these departments from hiring and training to the sales and marketing including financials for the entire chain. He succeeds Valentino Vivenzio who recently retired.
Mr. Swensen was former manager of space management as he oversaw all shelf space allocations for the entire chain. He began his career with Big Y in1985 as a part time service clerk in their Southwick supermarket. While there, he moved on to grocery clerk and then frozen foods and dairy clerk until being promoted to the full time grocery night crew in 1987. From there, he held the positions of night crew manager and on to grocery manager by 1992. Two years later, he was accepted into the store manager-training program and appointed assistant store manager in the Big Y World Class Market in Worcester, Mass,.
NEFF Annual Food Caravan Plans Are Underway
Each year the New England Food Foundation organizes a Food Caravan just before the Thanksgiving holiday. In 2008, the NEFF collected donations of more than 12,000 cases of food and staple items which were distributed to more than 90 food pantries and shelters throughout New England. This year Nov. 21 will be the distribution date for all the organizations. All grocery items are needed with special needs for staple items such as juice, cereal, canned items, peanut butter, tuna, rice baking mixes, sugar, and granola bars. No perishables are needed. Any branded or store label products, discontinued items, overstocks, or short coded items are welcome. Ideally the quantity for each item is 90 cases but the NEFF will take any quantity that is available.
Deliveries of donations can be made to the Greater Boston Food, 70 South Bay Ave, Boston. Delivery day and hours are Monday through Friday, 8:00 a.m. to 2:00 pm.. Appointments are needed and should be scheduled by calling Melissa Ford at either 617-427-5200, ext. 5045 or 978-397-2786.
Organizing the event for the NEFF is Jerry Larsson (978-807-4461) or Ricky Daly (401-345-6085).
Retail Latest Word…
Wegmans Food Markets opened last week a full service restaurant called The Pub in its Collegeville, Pa. Store. The Market Café will featured combined indoor and outdoor seating for more than 300 customers.
Weis Markets last week announced Geoffrey Wexler has joined the company as director of food service and deli and that Dennis Yoney is the company’s new director of pharmacy operations. Prior to joining Weis Markets, Mr. Wexler was with Publix Supermarkets and Mr. Wexler also worked for Sodexho Corporate Services, NexStore Marketplace and eatZi’s Market and Bakery. Mr. Yoney will oversee day-to-day pharmacy operations and the execution of the company’s strategic initiatives in its 119 pharmacies.
   
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 FOODSERVICE NEWS
GSI US Launches New Timeline Initiative For Manufacturers, Distributors, and Operators
GS1 US announced last week that 55 national food service manufacturers, distributors and operators have launched the Foodservice GS! US Standards Initiative. This is the adoption of a common timeline for voluntary company implementation of GS1Global standards for company identification, item identification, and product description.The initiative is striving for 75 percent adoption of GS1 standards throughout the food service industry, measured in terms of revenue, by 2015, and is endorsed by the International Foodservice Manufacturers Association (IFMA), the International Foodservice Distributors Association (IFDA), the National Restaurant Association, and GS1 Canada Foodservice. Industry organizations and founding members of the Foodservice GS1 US Standards Initiative cite three main objectives and industry-wide benefits including: driving out waste of the foodservice supply chain; improving product information for customers; and establishing a foundation for improving food safety and traceability.
Busy Week Of News For Dunkin’ Brands
Last week Dunkin’ Donuts opened its first stores in the Gunagdong Region of China and has secured agreements to open 480 shops in Mainland China over the next 10 years. In other news, Dunkin’ Brands named John Costello to chief global customer and marketing officer. He will take the place of Frances Allen, who decided to step down after two years of leadership. In other company news, Baskin Robbins announced that Sue Thirlwall has joined Baskin Robbins as brand operating officer and Brad Wahl is the new vice president of marketing. Lynette McKee, former vice president of franchising for Dunkin’ Brands has left the company to be the senior vice president and chief development officer for Checkers Drive-In Restaurants.
NHLRA Announces Stars of the Industry Finalists
The 95th Stars of the Industry Awards Dinner for the New Hampshire Lodging and Restaurant Assn. will be held on Nov. 2 at the Mount Washington Resort, beginning at 5:00pm. This event comes one day before the Nov. 3 New Hampshire Hospitality Expo set for 9:00 a.m. to 3:00 p.m. at the Mt. Washington Resort. Awards include Innkeeper of the Year, Restaurateur of the Year, “Ed Bednarowski” Allied Member of the Year, and Employees of the Year for both lodging and restaurants. The top three nominees in each category will be recognized at the Stars of the Industry Awards Dinner.
The finalists announced last week include; Innkeeper of the Year, Bridget LeRoy of th New London Inn, Dicky Desai, of the Hill-brook Motel and Ed Butler and Les School of the Notchland Inn. Restaurateur of the Year finalists include Terry O’Brien of Red Parka Pub, Howard Seckendorf of Windjammers, and Brian Shea of the Barley House.
Allied Member of the Year finalists include Greg Crocker of New England Coffee, Susan Bower, Bill Bolton and Chris Spencer of Performance Food Service and Paul Ramsey of PSNH.
Employee of the Year for lodging finalists include: Lauren Canepa of Holiday Inn of Corcord, Michele Hoffman of the Radisson Nashua, and Kirsten Skele of the Best Western Sunapee.
Employee of the Year for Restaurant finalists include: Kevin Brown of Harts Turkey Farm, Rob Clifford of Fratellos, and Barry Borden of Country Spirit.
Food Service Latest Word…
The Rhode Island Hospitality Assn. and Rhode Island Tourism Division will sponsor an Economic Outlook Breakfast Wednesday, Oct. 14 from 8:00 a.m. to 10:30 a.m. Speakers include: Hudson Riehle, senior vice president of research and information for the National Restaurant Assn., Rachel Roginsky, principal of the Pinnacle Advisory Group and Shane Norton, senior consultant for Global Insight.
The New Jersey Restaurant Assn. last week endorsed Chris Christie for governor. Mr. Christie is a U.S. attorney.
The New Hampshire Lodging and Restaurant Assn. announced that food service license fees have almost doubled fro a year ago.
The “Small Plates = Big Profits” seminar, hosted by the Mass. Restaurant Assn., has been rescheduled for Oct. 21.
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 C-STORE NEWS
FMI Thanks Vt. Store Owners For Testimony In Hearing On Credit Card Fees
Jennifer Hatcher, Food Marketing Institute group vice president, for government relations, last week commended House Representatives Peter Welch (D-Vt) and Bill Shuster (R-Pa) for introducing credit card fee legislation to protect small businesses and consumer.
She added, “We are grateful to Kathy Miller, co-owner with her husband Warren, of the Elmore Store in Elmore, Vt. for testifying on behalf of FMI and the National Grocers Association.”
“As Kathy Miller explained in her testimony, when grocers decide to accept Visa and MasterCard in their stores, they must agree to abide by all Visa and MasterCard rules and all future rules. Visa and MasterCard can change the rules at any point and are not obligated to inform the merchants. Rep. Shuster printed out a complete copy of the rules to show the volume to the Committee – a stack that topped six inches in height.”
“The Millers and other merchants who accept Visa and MasterCard are not allowed to set a minimum amount for credit card transactions in their stores. Kathy Miller shared that when she sells a pack of gum, she loses money. When she sells a bag of chips, she makes 2 cents and the bank makes 23 cents. Something is wrong with this picture.”
NCR Expands Blockbuster Express DVD Rental Kiosks To All Tedeschi Food Shops
NCR Corp. will install its BLOCKBUSTER Express-branded DVD-rental kiosks throughout all the Tedeschi Food Shops , a 188-location convenience store chain in Massachusetts, New Hampshire, Rhode Island and Connecticut. BLOCKBUSTER Express is currently available in 89 Tedeschi Food Shop locations. By the end of October it is anticipated that 27 more locations will be deployed, with the remainder of the Tedeschi chain to be installed by the end of 2009. No membership is required to rent a DVD at a BLOCKBUSTER Express kiosk – customers simply swipe their credit card and are charged $1 per night until they return the DVD.
“Tedeschi Food Shops prides itself in its ongoing quest to be the destination of convenience. By partnering with NCR to add BLOCKBUSTER Express kiosks in our locations, we have ensured that our customers add convenient and affordable entertainment as additional reasons to shop our stores. Our decision to partner with NCR follows a careful evaluation of other similar services in this space. We believe NCR has the most compelling vision for delivering entertainment conveniently and efficiently to consumers,” said Joe Hamza, vice president of sales and marketing for Tedeschi Food Shops.
PepsiCo. to Form New Bottling Unit
Following the previously-announced mergers with The Pepsi Bottling Group (PBG) and PepsiAmericas (PAS) PepsiCo announced plans to form a new entity comprising the bottling businesses, effective upon closing of the mergers. The new unit will be called PepsiCo Bottling North America (PBNA).
Eric Foss, current chairman and CEO of PBG, the world’s largest bottler of PepsiCo beverages, will become CEO of the new bottling unit, PBNA will comprise all current PBG and PAS operations in the United States, Canada and Mexico, and will account for about three-quarters of the volume of PepsiCo’s North American bottling system, with independent franchisees accounting for the rest.
PBNA will be separate from the brand-oriented PepsiCo Americas Beverages (PAB) unit, which will continue to oversee independent bottlers and Gatorade and Tropicana operations.
C-Store Latest Word…
The New England Convenience Store Assn’s Executive Networking Luncheon and Annual Meeting will be held on Thursday, Oct. 15, at Lombardo’s in Randolph, Mass. This one-day conference (9:00 am. to 1:15 p.m.) will feature a presentation by Joe Petrowski, president and chief executive officer of Gulf Oil, and the latest C-Store industry update by Hank Armour, president and chief executive officer of the National Association of Convenience Stores. According to the New York Assn. of Convenience Stores, it is likely that on Oct. 22, a U.S. district court judge will lift the current injunction and order a start to deposits on bottle water sold in New York State. NYACS urges retailers to begin planning now to collect and redeem deposits on bottled water.
Coca Cola plans to introduce 90-calorie cans in 2010.
Anheuser-Busch last week launched Bud Light Golden Wheat.
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 NEW CHANNELS
Retailers, Food & Beverage Manufacturers Launch Effort To Help Reduce Obesity
A coalition of more than 40 retailers, non-governmental organizations and food and beverage manufacturers last week launched the Healthy Weight Commitment Foundation, a national, multi-year effort designed to help reduce obesity – especially childhood obesity – by 2015. It focuses on three critical areas – the marketplace, the workplace and schools.
Members of the Healthy Weight Commitment Foundation have already committed $20 million to this joint initiative to raise awareness about the importance of balancing a healthy diet with physical activity, particularly among children ages six to 11 years old and their parents and caregivers. This effort will include a soon-to-be announced national public education campaign on energy balance.
Participating companies are committing to build on existing efforts and will be making changes to their products, packaging, and labeling to make it easier for consumers to manage their calorie intake while preserving or enhancing overall nutrition quality. Specific options companies may undertake include product reformulation and innovation; providing smaller portions; redesigning packaging and labeling; placing calorie information on the front of products; providing consumers with information and educational materials; and in-store promotion of the initiative.
Regarding the workplace, participating companies will provide calorie information and healthier food and beverage options in cafeterias, vending machines and break rooms; providing access to exercise at work through individual and group activities; offering weight management programs; and implementing tools to track progress, like health risk appraisals.
Bottle Deposit Expansion Heats Up Again In Mass.
The Mass. Food Assn. (MFA) sent out an urgent appeal to its members last week, alerting them to reach out to their respective legislators to voice opposition to the expansion of the Bottle Bill.. Several proposals would impose deposits on noncarbonated beverages such as mineral water, flavored and unflavored water, vitamin water and other water based beverages such as tea, sports drinks, isotonic drinks, beers and other malt beverages.
According to the MFA expanding the beverage container deposit law would raise prices in a weak economy; expansion would yield disappointing environmental results; promote fraud and harm existing recycling programs. The MFA urges a more fiscally and environmentally responsible approach including investing in existing recycling programs.
The MFA believes the move for bottle deposit expansion is coming from recent successful expansion efforts in Connecticut and New York.
Target Opens 26 New Stores, Creates 5,000 Jobs
In the last two weeks, Target has opened 26 new stores. Twenty-one locations are general merchandise stores, 18 of which have expanded food options; and five locations are full-grocery SuperTarget stores. In all, 5,000 new jobs were created by the opening of the stores.
The 21 new general merchandise stores all feature a blend of everyday essentials including household products, electronics, clothing and an assortment of food and seasonal merchandise. Eighteen of these general merchandise stores will offer expended food options. This new format has an open-market layout and features new food additions including basic fresh produce and packaged meat along with baked goods.
All general merchandise stores employ 100-250 team members. General merchandise stores are approximately 127,000 square feet and general merchandise locations with an expanded food assortment are 135,000 square feet. Five five new SuperTarget stores offer a complete, one-stop-shopping destination by combining the convenience of a general merchandise store with a full-scale grocery. Additional merchandise options include a complete assortment of fresh produce, and an on-site bakery and deli. Each SuperTarget employs 200-30Locations receiving a SuperTarget include: As of Oct. 7, Target has 1,743 stores in 49 states nationwide.
New Channels Latest Word…
PepsiCo has been awarded a federal Smartway Transport Partnership Award for efforts in conserving energy and lowering greenhouse gas emissions from its transportation and freight activities.
The National Retail Federation has projected that holiday retail industry sales will decline one percent from a year ago.
Walgreen Co. plans to add beer and wine to most of its store in the next 12 to 18 months.
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Copyright Griffin Publishing Co. 2009
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