wofoodrld - amazon s3 · 2018-11-23 · eran dean wilkinson has been named bfresh lead and will...

See WILKINSON on page 6

See KROGER on page 26

A $15 an hour minimum wage for Baltimore City? Baltimore City? A one-and-a-half cents per ounce tax on both sweetened and artificially sweetened beverages in the city of Philadelphia?

After years of taking it on the chin (in smaller doses), the past few months have served as living hell examples of what happens when needy municipalities and their politicians engineer tax plans at the expense of the grocery industry to fill a need that only marginally applies to those being penalized.

In the case of the $15 an hour minimum wage, that bill came closer to becoming law as the Baltimore City Council earlier this month approved the measure by a 12-3 margin. That bill now moves closer to the desk of

WEIS MARKETS CELEBRATED THE GRAND OPENING OF ITS NEW 65,000 SQUARE FOOT FLAGSHIP STORE IN ENOLA, PA MARCH 9, FEATURING ITS NEW “COMMUNITY MARKET” DESIGN. Welcoming shoppers on opening day are store manager Andrew Campbell and Weis Markets chairman and CEO Jonathan Weis.

Earnings Solid, But Kroger’s 13-Year Positive ID Sales Streak Snapped

Somerville, MA Unit Opens; New Philly Stores Slated

Ahold USA Veteran Wilkinson To Head bfresh Specialty Unit

INSIDE THIS ISSUE TAKING

STOCKby Jeff Metzger

Food Industry Continues To Fill Role Of Politicians’ Economic Whipping Boy

8 C&S Robesonia Trade Show Attracts Retailers To York, PA Fairgrounds

12 Mid-Atlantic Notables Flock To Bozzuto’s Indie Retailer Conference Vol. 73 No. 3 SEAFOOD ISSUE March 2017

WorldFood

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TAKING STOCK continues on page 6

Earlier this month, Kroger Co. posted identical store sales of neg-ative 0.7 percent (excluding fuel) in its fiscal fourth quarter ended January 28, ending a remarkable streak of positive ID sales that dated back to 2004 (52 quarters). The marginal sales decline was not surprising since the largest pure-play supermarket chain in

the country had been lagging in recent quarters as the Cincinna-ti-based merchant struggled like many other retailers with food deflation, intense price competi-tion (especially from Wal-Mart) and an overcrowded market

Ahold USA’s bfresh banner (part of its Fresh Formats unit) has a new leader – company vet-eran Dean Wilkinson has been named bfresh lead and will over-see activities at its fledgling bfresh specialty food stores group, effec-tive March 1, 2017.

As part of the ongoing corpo-rate reorganization in the U.S. of parent firm Ahold Delhaize, the merchant’s Fresh Formats divi-sion now falls under the guidance of under its large Stop & Shop brand.

“Dean brings years of retail op-erational experience, and he will

be a valuable resource as we de-velop new and innovative format opportunities,” said Mark Mc-Gowan, president, Stop & Shop. “We are proud of the excellent work of the Fresh Formats team as they just brought the third bfresh store to life in Somerville, MA (which opened on February 24).”

Wilkinson has been with Ahold USA for nearly 18 years and has more than 30 years of experience in the retail and wholesale grocery industry. In May 2015, Wilkinson was named senior VP of store strategy and execution for AUSA. He began his career in 1984 as a produce manager and buyer for Edwards Super Food Stores. He joined Stop & Shop in 1998 as a customer service manager and, after holding various positions of increasing responsibility, be-came a district manager for Stop

& Shop in 2004 in New England. Wilkinson moved to the Giant/Landover division in 2006 where he held several leadership posi-tions, including VP of sales and merchandising. He also served as director of non-perishable sales and merchandising, a position in which he was responsible for the profit and loss numbers for the dairy, frozen, grocery, natural, GM and HBC categories in all Gi-ant stores.

Scott Miller, interim senior VP-operations at Fresh Formats, has decided to leave the company in order to pursue other opportu-nities.

Glenn Hogan, currently VP of regional operations for the Stop & Shop New England Division,

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2 | FOOD WORLD March 2017 www.best-met.com

March 19-21Seafood Expo North America

will be held at the Boston Con-vention Center. For more infor-mation, go to www.seafoodexpo.com.

March 21-23C&S will hold its spring/sum-

mer show at Foxwoods Resort Casino in Mashantucket, CT.

March 30The MId-Atlantic chapter of

the Network of Executive Women will host “UnCork Your Creative Side!” at Nottingham’s in Co-lumbia, MD from 5:00-8:00 p.m. See ad on page 25 for additional information.

April 3The 2017 IRI Growth Summit

will be held at Gaylord Opryland

Resort & Convention Center in Nashville, TN. For more informa-tion, or to register, go to www.iri-worldwide.com/en-US/Growth/Home.

April 5Saint Joseph’s University’s

Academy of Food Marketing will honor Weis Markets at the 49th annual Citation Dinner, which will be held at Hershey Lodge in

Hershey, PA. More information to come.

April 10-12The National Frozen and Re-

frigerated Association will hold its executive conference at Tem-pe Mission Palms Hotel & Con-ference Center in Tempe, AZ. For more information, or to register, call 717.657.8601 or go to www.NFRAExectutiveConference.org.

April 24-25DPI Specialty Foods will hold

its 2017 holiday trade show in Baltimore.

April 27Easter Seals will hold its Advo-

cacy Award Dinner honoring Dan Valenzuela, president of Safeway Eastern, at a location to be an-nounced. For more information, email [email protected] or call 301.920.9702.

May 2The Mid-Atlantic Chapter of the

Network of Executive Women will host a learning event at Martin’s Crosswinds in Greenbelt, MD. For more information, go to www.newonline.org.

May 3The Greater Philadelphia chap-

ter of the Network of Executive women will host a learning event at the Hershey Country Club in Hershey, PA. For more informa-tion, go to www.newonline.org.

June 4-6IDDBA’s 2017 Dairy-Deli-Bake

will be held at the Anaheim Con-vention Center. For more infor-mation, go to www.iddba.org.

June 13-15United Fresh will hold its con-

vention at McCormick Place in Chi-cago. For more information, go to www.unitedfresh.org/events-pro-grams/united-fresh-convention/

June 25-27The Summer Fancy Food Show

will be held at the Javits Conven-tion Center in New York City. For more information, go to www.fan-cyfoodshow.com.

August 24-34The World of the Latino Cui-

sine will be held at the Meadow-land Expo Center in Secaucus, NJ. For more information, go to www.latinofoodshow.com.

September 13-16Natural Products Expo East

2017 will be held at the Bal-timore Convention Center. For more information, go to www.es-poeast.com.

TRADE CALENDARssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss

See TRADE CALENDAR on page 29


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mailto:[email protected]

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www.best-met.com March 2017 FOOD WORLD | 3

Utz Quality Foods, LLC.900 High Street, Hanover, PA 17331 1-800-FOR-SNAX utzsnacks.com



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Food

It’s March and with the Super Bowl behind us, a lot of football fans who aren’t Patriots devotees want to put this year’s game in the distant past. However, al-though Pats quarterback Tom Brady has just as many detrac-tors as he does supporters (you either love him or hate him – no in-between), his diet (to which he largely attributes his good health and continued success as a QB) has people from both sides of the fence talking. So much so, that Brady has partnered up with plant-based meal delivery kit company, Purple Carrot, to offer TB12 Performance Meals subscription service. The meal kits, which, according to the press release, “are designed to help active individuals achieve and sustain peak performance,” and will feature gluten-free and high protein recipes developed without any dairy, eggs, seafood, meat or processed foods. The recipes also limit the use of soy

and refined sugars adhering to the TB12 nutritional guidelines. Subscriptions to TB12 Perfor-mance Meals, which includes three meals for two people, are priced at $78/week ($13/plate) and will begin shipping April 3.

Brady and Purple Carrot ar-en’t the only ones touting plant-based protein as the next big thing. The new CEO of Tyson Foods, Tom Hayes, sees it as the next big thing. When inter-viewed by Fox Business, Hayes recently said, “If you take a look at the FAO (Food and Agricul-ture Organization) stats, protein consumption is growing around the world—and it continues to grow. It’s not just hot in the U.S.; it’s hot everywhere. Peo-ple want protein, so whether it’s animal-based protein or plant-based protein, they have an ap-petite for it. Plant-based protein is growing almost, at this point, a little faster than animal-based, so I think the migration may continue in that direction.” The CEO (and his company) has put the money where his mouth is: the U.S. meat processor al-ready owns a five percent stake in plant-based protein startup Beyond Meat and they have also launched a venture capital fund of $150 million to invest in startups that develop meat substitutes. With the hot buzz plant-based burgers that sup-posedly taste and “bleed” like real beef burgers currently have right now (one of which has been developed by the afore-mentioned Beyond Meat), I think Hayes and Tyson are on to something. I expect other meat manufacturers to follow suit in

order to expand their options.The Grocery Manufacturer’s

Association (GMA) and the Food Marketing Institute (FMI) announced last month changes that they will be implementing to help clear up the confusion caused by “sell by” labels on products. The industry stan-dard currently relies on 10 dif-ferent phrases that include “best before” and “best by.” The two trade groups have now whittled the options down to two that they are in support of: “best if used by” (a quality indicator for foods that are still safe to con-sume after a specific date but which may change in taste or function beyond that time) and “use by” (which are meant for highly perishable foods that may not be safe to eat past the date indicated). Both GMA and FMI are encouraging manufacturers and retailers they work with to switch to one of the two labels now, but are giving them until July 2018 to conform to these standards. Walmart, Wakefern and Dean Foods are all in favor of these changes, which while encouraged, are still voluntary in nature so there is no assur-ance that every company will comply. Harvard University’s Food Law and Policy director Emily Broad Lieb is a big fan of this new policy as well. “I think it’s huge. It’s just an enormous step. It’s still a first step – but it’s very significant.”

U.S. avocado producers and suppliers, take note: a New Zealand Grocer by the name of Freshmax has started using a sticker on the popular fruit to help consumers determine

its varying stages of ripeness. As one of the things that pro-duce shoppers agonize over, this sticker helps them take the guesswork out of selecting the perfect avocado for their needs. The concept is simple: the stick-er has three shades representing the stages that the skin of an avocado go through and what stages they are: not ripe, firm ripe and soft ripe. Consumers just need to determine which shade matches the avocado it’s on to figure out its ripeness. This is such a low-tech and simple idea that is genius in my opin-ion. I hope that these stickers will travel stateside in the near future so that I make the perfect guacamole and avocado toast every time!

While we are on the topic of produce, I would like to say congratulations to the following folks for being selected as award winners of United Fresh’s 2017 Retail Produce Managers award: Jack Myers of Weis Markets, Ricky Rommell of Food Lion, Tim Sexton of Harris Teeter and Matt Pace of Lowes Foods. These four gentlemen help comprise the small group of 25 recipients that were selected from hundreds of nominations submitted by industry retailers and suppliers across the country and parts of Canada. They are being recognized for making a difference and setting standards of excellence in the produce department at the store level and in their communities. The award ceremony will take place at the United Fresh 2017 con-vention in Chicago on June 15 at the retail-foodservice celebra-

tion dinner. Great job, guys!Additionally, in Weis Markets

news, the Sunbury, PA-based re-tailer will once again be honored by the Academy of Food Mar-keting at Saint Joseph’s Univer-sity at the 49th Annual Citation Award Dinner, which will be held in Hershey, PA next month. Weis, which is being recognized for its continued commitment to the SJU food marketing pro-gram, was the recipient of this award in 2004 and 2012 as well. “We are partnering once again with Weis Markets because they are a strong supporter of our program,” stated Eileen Acello, director of development and re-cruitment for the Academy of Food Marketing. “They provide many internships and full-time jobs for our graduates. The ci-tation award allows the Acade-my of Food Marketing to award supporters of our program and we are pleased to be in our 49th year of offering this prestigious honor.” Reservations can be made sju.edu/afm/weiscita-tiondinner and will be accepted until March 31. For addition-al information, please contact Acello at 610.660.1602 or [email protected]. Proceeds from this event will benefit the Food Mar-keting Educational Foundation, which provides scholarship aid to SJU food marketing students.

I would also like to give a shout out to C&S for their spring 2017 customer buying show theme “Salute to Service.” The York, PA-based show was




MARK YOUR Calendars

HOLIDAY TRADE SHOW APRIL 24TH & 25THSAVE DATE

BALTIMORE, MD

the



will leave that role to join Ahold USA and replace Wilkinson in the store strategy and execution role on an interim basis.

Fresh Formats has begun its journey at a relatively slow pace beginning with its experimen-tal 3,700 square foot Everything Fresh store, which opened in De-cember 2014 on Walnut Street in Philadelphia (under the direc-tion of former Ahold executive VP Bhavdeep Singh). That store served as the concept’s “laborato-ry.” Singh departed shortly after that debut (he is now working in India) and in September 2015, under the oversight of Miller, the revised specialty format cut the ribbon on its initial full-fledged bfresh store in Allston, MA

(10,000 square feet). Two months later, an 8,600 square foot store in tony Fairfield, CT also opened. That store proved unsuccess-ful and closed six months later. Bfresh then expanded to Brigh-ton, MA (only two miles from the Allston location) with a 9,700 square foot specialty unit in Au-gust 2016. Last month it opened its third store, an 11,000 square foot specialty store in Somerville, MA (only five miles from the Brighton store).

While bfresh has been slow to expand during its first 24 months of operation, it appears that new store development is accelerating. Last summer, the company an-nounced that it will open its first bfresh bannered store in Philadel-phia (Society Hill) and now ad-

ditional Center City Philadelphia stores are earmarked for 2300 Bainbridge Street, Chestnut Street (University City) and North 2nd Street.

new Baltimore Mayor Catherine Pugh, who had earlier expressed support for the measure, but more recently has cited the bill’s potential adverse impact on businesses.

She should be concerned. Although wages would increase on a step basis (with the $15 an hour level reached in 2022), all food retailers that operate both in Baltimore City and in other jurisdictions acknowledge that operating city stores is significantly more costly than running supermar-kets in adjacent jurisdictions. In fact, the $15 an hour rate would eclipse the rate of all the surrounding counties to the City by almost $5 an hour.

After speaking with several retailers who attended the hearing, their disappointment was obvious, claiming that it was clear in their minds that many of the council members paid little or no attention to the challenges supermarkets face operating stores in a city where population is declining, crime is increasing and the margins in their core business have never been big.

A couple of retailers noted that the comments of Councilman Bill Henry were particularly insensitive and off base.

“If your agenda is to ram the ‘need’ for $15 an hour minimum wage down our throats, from a socio-economic perspective, I intellectually understand that view, although I disagree with it from my job as a small business owner,” said one independent retailer. “But to imply that my salary is somehow connected to his agenda to raise money for the city by any means, is plain wrong and insulting. I work hard every day and have created a lot of jobs for Baltimore City residents for many years. His level of entitlement was disingenuous and his attitude was certainly disrespect-ful.”

Ninety miles to the north in Philadelphia, the battle has left the legis-lative chambers and the horror show is now playing out daily at super-markets all over the city. While the soda tax is different from the minimum wage issue, its genesis is similar: “Our city needs more revenue (a sad reality), we can’t create enough incentive for more business opportunity, so let’s punish those businesses that have rewarded us for years with jobs and revenue.”


From page 1

TAKING STOCKssssssssssssssssssssssssssssssDean Wilkinson Is New bfresh Team Leader

Last month, bfresh debuted its newest unit, Davis Square in Somerville, MA. Cutting the ribbon were (l-r): Massachusetts Ward 6 Alderman Lance Davis; Paul Simas, bfresh VP-operations; Coby Reinhardt, bfresh Davis Square team coach; and Krystal Bredeson, bfresh Davis Square team captain.

From page 1

Dean Wilkinson

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Independent Retailers Head To York, PA Fairgrounds For C&S Wholesale

The York Fairgrounds was home to C&S Wholesale Grocers’ spring selling show, “Salute to Service,” February 28-March 1. This photo from the show features (l-r): Christopher Brown and Frank Puleo, C&S; Brent Musser, Musser’s Market; Joy Sgro, C&S; Brian Musser, Musser’s Market; Jim Kidwell, Family Owned Markets; and Tony Chicarelli, C&S.

These smiles belong to (l-r): Brian Markley, C&S: Holly Redcay, Deb Wallick and Jason Bandy, Stauffer’s of Kissel Hill; Frank Puleo, C&S; and Zach Goodman, Stauffer’s of Kissel Hill.

Russ Fryar (r) of Alpine Valley Bread says hello to Mary Sakers (l) and Frank Cleveland, both with Santoni’s Marketplace.

Rico Galassi (c) of Gerrity’s Supermarkets is flanked in this photo by (l-r): Linda Gilroy, Andrew Potts, Sandi Muller and Michael Larkin, all with JOH.

David Pittman (2nd from l) of Pittman’s Markets is joined here by (l-r): Gene Cleary, Joy Sgro and Christopher Brown, all with C&S.

John Trout (c) of Trout’s Market chats with Bob Ernst (l) and Matt Schlessler, both with Utz.

David McKay (2nd from l) of McKay’s Food & Drug is pictured here with (l-r): Paul Mills, Corey Quiring and Duane Nizinski, all with C&S.

Taking a break from a busy show to pose for a picture are (l-r): Steve Clemens, Clemens Food Group; Mark Lazarony and Glenn Crockett, Dutch-Way Farm Market; and Chris Shultz, C&S.

These fine folks are (l-r): Amy Phillips and Ted Kopp, Star Companies; Mindy Baker and Melissa Beck, Thompson Pharmacy; and Dan McShain, Star Companies.

Richard Cooper (l) of Jefferson Market is joined by Jim Serafin (c) and Ryan O’Donnell, both with Pepsi.

Lou Rotell (2nd from l) of C&S chats with (l-r): Joe Zegalia, Jeff Krenitsky and Bill Krenitsky, all with Quinn’s Shursave.

Paul Russick (r) of C&S says hello to BG’s Value Market’s (l-r): Glen Sninski, John Koval and Bob Koval.

Here we have (l-r): Frank Pascucci, Sabra/Stacy’s; Emilio Aritz, C&S; John Sauerzopf and Allan Conte, Integrity ESM; and Jim Kidwell, Family Owned Markets.

Brent Blakely (l) of P&G chats with Mark Sisler (l) and Geoff Mason, both with Hughes Sales Inc.

Making their way to York for the C&S show are (l-r): Scott Klinedinst and Phil Neil of C&S and Babbie Poyer and Bernie Snoops of Lauer’s Supermarket.



Grocers’ ‘Salute To Service’ Spring Trade Show February 28-March 1

Fitzwater’s Don Kiess (r) is joined here by (l-r): Bob Orton, Paul Mills and Joy Sgro, all with C&S.

This photo features (l-r): Greg Saubel, Saubel’s Market; Emilio Aritz, Darrell Ledford, Christopher Brown, Ed McLaughlin and Frank Puleo, all with C&S.

Gary Spinazze (l) of Friends in Service of Heroes, catches up with (2nd from l-r): Joy Sgro, Frank Puleo, Risa Jenkins, Bruce Brandfon, Christopher Brown and Bob Orton, all with C&S.

These retailers are Brian Musser (l) and Brent Musser (c) of Musser’s Market and Dean Altimore of Family Owned Markets.

Scott Sauers (2nd from l) of Integrity ESM chats with (l-r): Angie Criswell, Emilio Aritz and Larry Consolini, all with C&S.

A highlight of the the show was offered by artist Joe Everson (l), who created this painting of Iwo Jima, which was purchased at an auction by Peggy (c) and Steve Cox of Cox Markets.

Here we have (l-r): Michael Fox, C&S; Don Kiess and Dan Stoner, Fitzwater; Erica Stager and Jon Stager, Main Street Market.

All smiles for our camera are Bill Ineman (l) of Biery Cheese, Kevin Habecker (c) of Dutch-Way Farm Market and Allan Perkins of JOH.

Acosta’s Tim Potts (r) poses for a photo with (l-r): Logan Lengel, Rachel Henry, Bobby Stiffler and David Hudson, all with Saubel’s Markets.

Ed D’Onofrio (l) of Mr. D’s Delicious Fresh Foods is joined here by Gary Lauer of PFMA.

Gary Spinazze (2nd from r) of Friends in Service of Heroes chats with (l-r): Frank Puleo, Joy Sgro and Christopher Brown, all with C&S.

John Pacyna (2nd from r) of Gerrity’s Supermarkets is joined in this photo by (l-r): Chris Palmer, Eric Weaver and Dan Feathers, all with Kunzler.

Dick Peters (c) of Peter’s Markets is flanked in this photo by (l-r): Wayne McGee, Brian Walsh, Joe Duffy and John Loveys, all with UNFI.

This trio features Bruce Belack (l) of Vincent Giordano Corp. and Kelly Campbell (c) and Mike Eardley of IDDBA.

This group shot includes (l-r): Brian Walsh and Joe Duffy, UNFI; Larry Consolini, C&S; John Loveys and Wayne McGee, UNFI.



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Critically Important Farm Bill Talks BeginThe all-important farm bill

discussions have officially be-gun. The bill will be authorized in late 2018 and will have a five-year shelf life. It is one of the most important pieces of leg-islation that impacts our food industry literally from farm to fork. If you grow it, process it, manufacture it, distribute or store it, sell it, or eat it, the farm bill will impact you!

The United States Department of Agriculture (USDA) and Sen-ate and House agriculture com-mittee players have officially begun formal talks, hearings, and town hall type meetings in several cities and towns. Huge crowds, often numbering in the thousands, have started to pro-vide advice to those who will be crafting the 2018 farm bill. With the relatively new Trump ad-ministration rallying around the

theme of “less government bur-densome regulations and costly programs,” very challenging and complex questions are being asked this early in the game and crafting new solutions will be called for as the bill advances.

Competition With Big Agribusiness

Last month House agricul-ture committee Chairman Mike Conaway (R-TX), in addressing more than 1,700 individuals at USDA’s 93rd annual Outlook Forum in Virginia, offered a number of observations about the farm bill. First, he said that he will do all he can to make sure the bill gets done on time along with proposed changes to the Supplemental Nutrition-al Awareness Program (SNAP). The chairman said that changes

to SNAP will be aimed at helping people get off the program along with a lot of potential reforms. Watching over the farm bill has traditionally been done by huge

agribusinesses. But to reclaim the debates that will be held as the farm bill gets written, the Environmental Working Group and Food Policy Action Educa-tion Fund have launched “The Plate of the Union” campaign. The campaign will focus on the following imperatives, accord-ing to Politico: Stop taxpayer subsidies going to big ag pollut-ers – instead, invest in healthier farms, protect and improve vital anti-hunger programs, increase federal investments in organ-ic agriculture, and reduce food waste.

Farm Bill Financial Resources

While budget cuts and auster-ity programs will be the focus of the farm bill moving forward, hundreds of agriculture, envi-

ronment, anti-hunger and nu-trition groups have banded to-gether, according to Politico, to urge budget and appropriations leaders in both houses of Con-gress not to decrease farm bill funding. In a widely circulated letter, the groups said that the last farm bill made a significant contribution to deficit reduction - for nutrition and crop insur-ance expenses alone, costs were $100 billion less than projected, due largely to fewer Americans relying on the SNAP program. They added, “We have all be-gun preparing for the 2018 farm bill and recognize that passing a bill with additional funding reductions would be extremely difficult, if not impossible, “ the

See LEGISLATIVE LINE on page 29



• Full-line Conventional Produce• Full-line Specialty/Ethnic Produce

• Full-line Organic Produce• Fresh Cut Program



Independent Retailers, Vendors Venture To Foxwoods Resort Casino In Ledyard, CT

Foxwood’s Resort Casino was home to the Bozzuto’s 2017 Independent Retail Conference March 8-9. Jim Creeley (r) welcomes (l-r): Roy Rodman, Rob Williams and Nolan Rodman, all with Washington, DC-based Rodman’s

These folks from Eddie’s of Roland Park making the trip north are (l-r): Jeff Macis, Gus Smith, Renee Walker, Bill Snyder and Michael Schaffer.

Art Montuori (c) of Fresh Food Sales & Marketing is flanked in this photo by Albert Ndjee (l) and Julie Ndjee, both with Neilly’s Foods.

This trio includes Gus Lebiak (l) and Roy Cohen (c) of Alpha 1 Marketing and Chris Meehan of Northeast Food Marketing.

These industry vets are (l-r): Bill Gable, Retail Marketing Group; Kevin Brouillard, Adam’s Hometown Market; George Motel, Bozzuto’s; and Joe Cunnane, Retail Marketing Group.

This photo features (l-r): Ed Sepelak, STCR; Greg Fuller, Alliance Scale; Matt Bosely and Matt Brown, Index; and Zach Goforth, STCR.

All smiles for our photographer are (l-r): Joe Cunnane and Bill Gable, Retail Marketing Group; Michael Bozzuto, Bozzuto’s; Mark Batenic, IGA; and Dan Brock, Bozzuto’s.

On hand from Muuna Cottage Cheese are Jim Fluhme (l), Michael Tubman (c) and Daisy Timlin.

Taking a break from a busy show are (l-r): Bill Ainge, Bozzuto’s; Richard and Jeannette Schmidt, Elmer IGA; Debbie Worek, IRG; Joann Smith and Stacey Sampson, Elmer IGA; and Mike Laverty, Jones Dairy Farm.

Taking care of business at the show for Bogopa/Food Bazaar are Spencer An (l) and Edward Suh.

Bozzuto’s top man Michael Bozzuto (l) chats with (2nd from l-r): John Varrone, Christopher Morin, Ed Gavalis and Sue Gavalis, all with Adam’s Hometown Market.

King Kullen’s Al Gerrity (l) is joined in this photo by Dom Petrucelli (c) and Rich Read of Bozzuto’s.

Smiling for our photographer are (l-r): Justeo Morel, Janet Luna and Ruben Luna of Key Food and Lisa Pyros of Loebs Crunch.



Here we have (l-r): Mike Snyder, Dairy Farmers of America; Bob Jannotte, Lisa Connelly and Maggie Vrabec, all with MPS Enterprises; Bob Tammara, San Bernardo Ice Cream; and Tony Greco, MPS Enterprises.

This Imperial Distributors team photo features (l-r): Dave Dulude, Alisha D’Ambrosio, Robin Carpenter, Steve Abramson and Brian MacWhorter.

For Bozzuto’s Two-Day 2017 Independent Retailer Conference March 8-9

Steve Capanna (l) of Bozzuto’s says hello to Steve Shumbo of Oliver’s Market.

Ben Mandell (c) of Key Food is flanked in this photo by Mike McAndrew (l) and Mike Laverty, both with Jones Dairy Farms.

Nolan Rodman (l) of Rodman’s chats at the show with John Coles of Euro-American Brands.

This duo features Gary Krajeski (l) of Empire Food Marketing and Aimee McCone of Johanna Foods.

These folks are (l-r): Marc Gadory, Tri-Town; Jack Parente, Top Shell; Richard Carnevale, Tri-Town; Rocky Spardello, Shop Shell; Kevin Brouillard, Adam’s Hometown Market; and Jeff Antil, Bozzuto’s.

Michael Bozzuto’s (l) of Bozzuto’s says hello to King Kullen’s Marshall Irving (c) and Chris Gallagher.

Mike Bellis (c) of Bozzuto’s is joined here by Trisha Shultis (l) and Ricky Shultis of Hurley’s Ridge Market.

These fine folks are (l-r): Valeria Pili, Zucchi Olive Oil; Luci Sheehan, Strategic Sales & Marketing Initiatives; William Rodriguez, Key Food Montague; Jay Bern, Crossmark; Ivan Arguello Sr., Ivan Arguello Jr. and Emily Skaar, Key Food Montague.

Roche Bros.’ Brian Buckley (c) and Josh Naughton (r) are joined in this photo by Bozzuto’s Steve Heggelke.

Making their way to Foxwood’s for the Bozzuto’s show are Kirk Lavigne (l) of Lavigne’s IGA, Brian Gallagher (c) of D.F. Stauffer Biscuit and Todd Lavigne of Tri-Town IGA Express.

Here we have (l-r): Jeannette Schmidt, Elmer IGA; Yvonne Culley, John Lombardi and Craig McDonald, CMC Foods; and Richard Schmidt, Elmer IGA.



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Americans’ Seafood Consumption Below USDA MyPlate RecommendationsFrom fish tacos to smoked

salmon, pizza to shrimp sushi rolls, Americans are finding new ways to eat seafood. Seafood (fish and shellfish) is a nutrient-dense source of dietary protein, which is relatively low in calories and saturated fat, compared to some other protein sources, and rich in key nutrients, including vitamins A, B12, and D; iron; zinc; magne-sium; phosphorous; and potassi-um. Seafood is the primary food source of the beneficial omega-3 fatty acids, EPA and DHA.

The 2015-20 Dietary Guidelines for Americans and supporting USDA MyPlate food group targets recommend that Americans eat a variety of protein foods, including at least two servings of seafood per week, as part of a healthy eat-ing pattern low in added sugars, saturated fats, and sodium. For an average 2,000-calorie-per-day diet, that advice translates into at least 8 ounces of fish and shellfish per week, or about 20 percent of total consumption from the pro-tein foods group (meat, poultry, seafood, eggs, legumes, nuts,

seeds, and soy foods).The USDA’s Economic Research

Service (ERS) food availabili-ty data suggest that Americans are eating less than this recom-mended amount of seafood. After growing from 12 pounds in 1970 to a peak of 16.5 pounds in 2006, average per capita supplies of sea-food available for Americans to eat were 2 pounds less in 2014 at 14.5 pounds. Loss-ad-justed availability (a proxy for con-sumption) was 2.7 ounces per week, or about one-third of recommenda-tions.

ERS annual-ly calculates the available supply of a commodity as the sum of pro-duction, imports, and beginning inventories minus exports; farm,

industrial, and other nonfood uses; and ending inventories. Per capita estimates are determined by dividing the total annual sup-ply of the commodity by the U.S.

population for that year. ERS calculates a second set of data—loss-adjusted food availability—

by adjusting for food spoilage, plate waste, and other losses at the retail and consumer levels, to more closely approximate actual intake.

Survey data show that while more than half of Americans meet or exceed Dietary Guidelines targets for the total pro-tein foods group, most people need to make changes in their choice of foods within the group to reap the health benefits of seafood and stay within limits for total calories and saturated fat. Compared to the recommended 20 percent, seafood accounted for 5 percent of total

consumption from the protein foods group in 2014, which was dominated by meat and poultry.

Seafood was one of the least consumed protein foods on a weekly basis per capita basis in 2014.

Consumers also chose a rela-tively limited variety of seafood products. Five foods—shrimp, salmon, canned tuna, tilapia, and Alaska pollock—made up near-ly three-quarters of total seafood consumption in 2014. Low-cost imports of farm-raised shrimp, salmon, and tilapia and the use of wild-caught Alaska pollock in fast-food fish sandwiches, frozen fish sticks, and imitation crab meat have largely driven the pop-ularity of these four seafood spe-cies.

Shrimp, salmon, and canned tuna made up more than half of the seafood available for con-sumption in the United States in 2014.

Consumption of seafood may be limited by a number of fac-tors, including a lack of aware-ness about the health benefits

See SEAFOODon page 16

Source: USDA Economic Research Service

U.S. Seafood Consumption


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of seafood; unfamiliarity with preparation methods; the effect of higher retail prices, on average, compared with meat and poultry; and concerns about food safety and mislabeling of imported sea-food products.

Retailers can be more effective with seafood sales when they can assure their customers of the high quality of product while at the same time trying to keep prices at the best level possible.

Recently an organization called Future of Fish, in an effort to bring greater transparency and trace-ability to seafood supply chains, set out to explore the power of the story to sell more fish and to determine what elements most influence consumer purchasing behavior. The study is part of a series of investigations to identify the business benefits of data-rich supply chains and ignite market incentives for more responsibly harvested and traded seafood. The entire study can be found at www.futureoffish.org. Here are

some highlights from their find-ings:

Strength of “Storied Fish”

The concept of buying seafood with a story was defined as “Sto-ried Fish” using the following language: Storied Fish refers to seafood that tells a story about its journey from water to table. That story may include facts about the fisherman or fishing community that caught it, information about how the fish was harvested or processed, details about the fish-ery or region of the world where it originated, or a description of its health or sustainability-relat-ed qualities. The details included in storied fish may be part of a product label, included in a food brand or tagline, listed on a menu, or highlighted by a server in a restaurant.

Consumers Find Storied Fish Appealing

The message from the data is clear: consumers find Storied Fish

appealing, but cannot readily find it for purchase. When they do find storied fish, a large percent-age of respondents do buy it. Even though over two-thirds of respon-dents had never heard of the con-cept of Storied Fish, the major-ity found the concept appealing (63 percent). Most consumers, however, had never encountered such product in the marketplace. After being given the definition, only one-third reported ever

seeing “Storied” seafood in retail or restaurant environments. For those respondents that found the concept of Storied Fish appealing AND had encountered it, a vast majority (71 percent) reported purchasing that product.

Consumers Trust Friends and Family...and Retailers

Surprisingly, consumers say that they trust and rely on infor-

mation from the grocery store en-vironment almost as much as they value information from family and friends when it comes to their seafood selections. The study’s findings suggest a significant op-portunity for stores to influence purchasing patterns by packaging stories that matter to consumers, either at point of sale or locations throughout the store.

Shoppers Trust Grocery Retailers To Ensure Quality, Safety In Seafood SupplyFrom page 14


http://www.futureoffish.org/


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In this case the social/moral argument gets thrown in, too – “There’s too much obesity, so let’s target the purveyors of fat.” In my view, it is the consumers who make unenlightened choices. But, don’t blame them, because it is their right to choose – I don’t believe that law has ever been challenged, much less overturned.

Unsound logic or no logic at all? It doesn’t matter, because food retailers and beverage manufacturers and distributors are bearing the sole burden. And it’s really a big burden when you consider that beverage sales have diminished about 50 percent at Philadelphia stores since the law went into effect on January 1. More than 3,000 items are now eligible to be taxed, including flavored waters, sports drinks, teas and lemonades.

And as often happens, the lawmakers (City of Philadelphia) played the social sympathy card by noting that most of the estimated $90 million of revenue (Mayor Jim Kenney’s projection) amassed from the soda tax would be directed to pre-kindergarten related improvements.

First of all, the $90 million tax gain was a fantasy land number from the beginning. Now with soda (and related products) consumption down so significantly, the city will be fortunate to raise even half of its false estimate. And even at that, what will be the final dollar contribution to those pre-K needs?

I sense these two events (and other legislative shakedowns in other cities) have awakened the sleeping giant.

In Philadelphia, Pepsi and Canada Dry have announced job layoffs, as have several retail organizations. Expect more of the same from others as well as the diminishment of service levels to occur very soon.

Also on the docket shortly will be the industry lawsuit claiming that the soda tax is actually illegal because it creates a “double taxation” standard that conflicts with Pennsylvania’s existing 6 percent sales tax. This time, the case will be heard at the state Supreme Court level in Harrisburg, not in front of a hometown judge from the Philadelphia Court of Common Pleas, who dismissed the case without even a full hearing.

In Baltimore, if the minimum wage law is enacted, the results will be similar, or perhaps even more painful. After years of trying to entice su-permarkets to enter its underserved municipality and fill the void of food deserts, those efforts could be quickly undone.

Trust me, it won’t be a big stretch for not only those new entries to vacate Baltimore City but other merchants that have operated stores in Baltimore City for years to significantly decrease their workforces and possibly abandon operating in the city altogether.

Baltimore, Philadelphia, DC, Chicago, Los Angeles, Seattle, San Francis-co – the industry message is becoming a lot clearer – “We’re mad as hell and we’re not going to take it for much longer.”

Wal-Mart Changing The View With Best Identicals In Almost Four Years

Wal-Mart is back. After struggling with a myriad of issues ranging from associate relations to in-stock conditions which resulted in a nearly four year sales slump, the world’s largest retailer (2.3 million associates world-wide) posted its best comparable store results at its U.S. stores in more than four years.

When chief executive Doug McMillon, who has spent his entire career at the Bentonville, AR merchant, took the helm three years ago, he promised he would make the only company he’s ever worked for more progressive and flexible. That meant restructuring the executive team, creating better morale at store level and investing heavily in e-commerce, where Wal-Mart was getting pummeled by online giant Amazon.

It’s taken the 50-year old CEO nearly 36 months to make those radical and sometimes painful changes, but financial results over the past year have indicated that Wal-Mart has measurably regained the spring in its step, which will make them even tougher to defend against in an already overcrowded marketplace.

In its fourth quarter ended January 31 (which included the busy holiday shopping period), Wal-Mart’s comp store revenue increased 1.8 percent


From page 6

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When NAFCO Seafood and its sister firm Congressional Seafood moved into a new wholesale seafood distribution center in October 2015 in Jessup, MD, company CEO Stanley Pearlman knew the 88,000 square foot state-of-the art fa-cility would open up a world of new op-portunities for one of the largest seafood distributors on the East Coast (process-ing more than 60,000 pounds of seafood daily).

One of those opportunities was the company’s expansion into case-ready seafood packaging.

“We knew as early as 2012 that this was the beginning of an industry trend – re-tailers wanted more convenience-orient-ed packaging that was attractive and en-abled them to better manage margin and shrink,” said Pearlman. “We did not have the space to accommodate that growth, but when we moved into our new plant in October 2015, we had planned for it.”

With an investment of several million dollars in equipment and training and a

15,000 square foot carve-out in the new distribution center, NAFCO unveiled its first case-ready offerings late last year. Pearlman’s son Jeffrey and veteran NAF-CO executive Mark Emmons were tasked with spearheading the case-ready effort, which is being offered to the firm’s exist-ing East Coast retail customers as well as prospective new ones, including retailers that fall outside the mainstream super-market channel.

“This is clearly a value-added oppor-tunity for all parties,” said Emmons. “There’s always going to be a place for the manned, service seafood counter, but that’s not where every retailer wants to be. Case-ready allows that customer to offer a fresh product that is portion-con-trolled, at an attractive price in a package that is clean and visible to the consumer. It’s part of a total seafood solution. As a wholesaler, we need to be proactive and as versatile as our customers need us to be.”

Currently, there are 19 species of sea-

food being offered in case-ready form. NAFCO’s cutting edge equipment allows it to process 6,000 packages per hour in two transparent packaging varieties: skin pack and overwrap.

“This is an exciting opportunity for all of us at NAFCO,” said Jeffrey Pearlman. “Our primary goals when we opened the new facility were to place the highest pri-ority on food safety and also to provide our customers both in retail (NAFCO) and foodservice (Congressional) with a clear point of difference in how we do business. We’ve worked diligently to meet or exceed the highest industry stan-dards in food safety – SQF (Safe Quality Foods); BAP (Best Aquaculture Prac-tices); and MSC (Marine Stewardship Council) – and we’re also listening close-ly to our customers on how their needs are evolving. I believe we’ve always done a good job on the execution side of the business and now this new facility allows us to become more efficient and creative.”

NAFCO Seafood executives Mark Emmons (l) and Jeffrey Pearlman showcase the company’s new case-ready product at the seafood distributor’s new 88,000 square foot distribution center in Maryland.

New Facility Allows NAFCO Seafood To Expand Into Case-Ready Seafood

This is clearly a value-added opportunity for all parties. There’s always going to be a place for the manned, service seafood counter, but that’s not where every retailer

wants to be. Case-ready allows that customer to offer a fresh product

that is portion-controlled, at an attractive price in a package that is clean and visible to the consumer.

It’s part of a total seafood solution. As a wholesaler, we need to be

proactive and as versatile as our customers need us to be.”

Mark EmmonsVice President

NAFCO Wholesale Seafood

“



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National Grocers Association Annual Convention Held February 12-15 At The Mirage In Las Vegas

Among those making the trip west were Gus Lebiak (l) of Alpha 1 Marketing and Steve Laskowitz of Krasdale.

Jim McCaffrey IV of McCaffrey’s Markets is joined in this photo by Dennis Campbell of C&S.

George Motel (r) of Bozzuto’s says hello to Donald Nice of Landis Supermarkets.

All smiles for our photographer are Debbie and Shawn Ravitz of Ravitz Family Supermarkets.

Mark Batenic (l) of IGA is joined here by Russell Zwanka of SUNY-New Paltz.

Here we have (l-r): Maura Shenker, Saint Joseph’s University; Elaine and Dick Redner, Redner’s Markets; and George Latella, Saint Joseph’s University.

John Baxter (l) of Phillips Foods chats with Chuck Anderson of Sustainable Sea Products International.

Checking out things at this year’s NGA are Zach Goforth (l) of STCR and Nallely De Jesus of NSA.

Max Henderson (l) of Grocer’s Supply chats with Fred Foose of C&S.

Brian Haley (l) of Burris Retail Logistics is joined here by Charlie Moro of CMC.Taking care of business in the Burris Retail Logistics booth

are Brian Haley (l), Megan Caruso (c) and John Haggerty.

This C&S trio at the NGA show in Las Vegas features Dennis Campbell (l), Frank Puleo (c) and Fred Foose.

These folks from Imperial Distributors are (l-r): Louise and Rich Harvey, Robin Carpenter and Joe Kirby.

These Redner’s Markets folks are (l-r): Dan and Judy Hager and Doug and Toni Emore.

Members of the food industry gathered in Las Vegas last month for the annual National Grocers Association convention at The Mirage. Among those making the trip west were (l-r): Scott Streett, Harvest Fare; Buster Madison, B. Green; and Jim Streett, Harvest Fare.



www.bozzutos.com I Follow us for updates:

For more information, contact Dan Brock, Vice President of Sales, at 203-250-5372.

It takes agood partner.

With a loyal partner by your side, the possibilities are endless. That’s why for over 70 years, our

family owned and operated retailers have trusted Bozzuto’s to help their business achieve its fullest

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we feel our partners deserve service that exceeds their expectations. And we deliver.

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in the U.S. (vs. 0.6 percent in last year’s fourth quarter) and its domestic e-commerce volume jumped 29 percent, aided by its $3.2 billion acqui-sition of jet.com in September. Mark Lore, co-founder of jet.com, is now spearheading Wal-Mart’s e-commerce business.

Other strong U.S benchmarks included a 2.8 percent sales gain in overall Wal-Mart bannered stores (to $83.7 billion), 1.4 percent traffic increase and a 0.4 bump in average transaction.

At its other U.S. banners – Sam’s Club and Neighborhood Market – the news was equally as good.

The company said that its grocery, health and wellness, and apparel were some of the top-performing categories at its U.S. stores, despite a slow beginning to the quarter for cold-weather merchandise. Electronics, media and gaming were soft.

At its long beleaguered club store operations, comps (ex-fuel) in-creased 2.4 percent and overall sales jumped 3 percent. Additionally, in-store traffic and average transaction size both grew 1.2 percent.

And at Neighborhood Markets, the fastest growing Wal-Mart banner, comps surged 5.3 percent in the 13-week period.

On a global basis, the Bentonville Behemoth rang up fourth quarter sales of $130.9 billion (a 3 percent increase, excluding currency vari-ables). Total sales for its fiscal year were $496.9 billion (a 3.1 percent gain, excluding currency variables).

If there was one somber note to Wal-Mart’s Q4 financial performance it was that earnings were slightly down. In its core U.S. stores, profit dipped by 2.5 percent to $4.99 billion and on a worldwide analysis, earnings dipped 3.4 percent. However, many analysts felt the decline could be at-tributed to much higher than usual cap-ex spending to improve infrastruc-ture and bolster its e-commerce initiatives.

Wal-Mart also noted that it generated $11.9 billion in operating cash flow and returned $3.6 billion to shareholders through dividends and share repurchases.

“We’re moving with speed to become more of a digital enterprise and better serve customers. We had a very solid fourth quarter with U.S. comp sales growth of 1.8 percent and U.S. e-commerce GMV growth of 36 percent. Our international business is consistently delivering solid sales growth in constant currency, and Sam’s Club posted its best comp sales growth of the year. I want to thank our talented associates for their work. We have more work to do, but I’m pleased with our progress,” said McMillon.

‘Round The TradeGood news for our friends at Burris Logistics, the large family-owned

provider of public refrigerated warehousing and freight consolidation services. The Milford, DE-based logistics firm earlier this month an-nounced that it has successfully completed the purchase of a 55-acre property in McDonough, GA (33 miles south of Atlanta) and will soon begin construction of a 250,000 square foot, public refrigerated ware-house (PRW) with 28,000 pallet positions, and an attached office on the property. The facility will create more than 75 local jobs for Phase I when construction is completed in January 2018. The Georgia warehouse will allow the company to further enhance a growing network of refrigerated warehouses, strengthening customer service. “Burris continues to evolve to meet the needs of our current and potential clients,” said Donnie Burris, company CEO. “Our expansion into the Greater Atlanta region highlights the growth, popularity and diversification we are experiencing throughout our entire operation. We are selected for our commitment to service, leading-edge technology and solid core values. We welcome new and expanded relationships.”…private equity firms Leonard Green and Partners and CVC Capital Partners, which own club operator BJ’s, are reportedly looking for a way to unload the investment they acquired in 2011 for $2.8 billion. Given that six years is within the framework of a PE “dump” this potential move shouldn’t be surprising. Certainly the inroads that Amazon and now Wal-Mart have made against all club operators offer another


From page 17


Members of the food industry gathered in Las Vegas last month for the annual National Grocers Association confab at The Mirage. Supervalu hosted a reception during the convention where the Food World camera spotted (l-r): Mark Gross, CEO of Supervalu; Renee and Mike Stigers, Supervalu; and Rick Rodgers, B. Green.

Supervalu Welcomes Customers To Function At NGA

On hand for the festivities are (l-r): Doug and Trudy Emore, Redner’s Markets; Joe and Victoria Della Noce, Supervalu; Dick and Elaine Redner, Redner’s Markets; Kevin Kemp and Judi and Dan Hager, Supervalu.

Supervalu’s Brian Audette (2nd from l) welcomes (l-r): Rick Rodgers and Matt Battaglia of B. Green and Scott Streett of Harvest Fare.

Joe Della Noce (c) of Supervalu poses for a photo with (l-r): Larry and Kim Mihalko, Don Nice and Josh Landis, all with Landis Supermarkets.



See PEOPLE on page 23

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potential reason for BJ’s to find a new home, too. The Wall Street Journal reports that the Natick, MA-based merchant is looking at either a sale or a possible IPO. BJ’s, which operates 213 units primarily on the East Coast (and Ohio), was a publicly-traded enterprise before its purchase by Green and CVC…Aldi said it will spend $1.6 billion to remodel its 1,300 U.S. stores. Aldi’s new redesigned model, which now exists in about 300 units, features wider aisles, raised ceilings, sleeker refrigerated doors and windows and more natural lighting. The new store design adds about 20 percent more floor space (to about 20,000 square feet) and an expanded perishables presence…it looks like Stop & Shop is attempting to enter the apartment building business. In a filing with the Boston Planning and De-velopment Agency, the biggest division of Ahold USA is seeking permission to redevelop its existing store at 60 Everett Street in the Allston section of the city. As part of a broader plan, called Allston Yards, Stoppie would also build 1,010 residential units (apartments) and offer office space and ground floor retail and restaurant space. “Stop & Shop has been proud to call Boston our home for over a century and we believe that Allston Yards project represents a terrific opportunity for us to better serve the neigh-borhood and community,” said the talented Mark McGowan, president of Stoppie…if Whole Foods Markets is banking on its trendy “365” concept as a growth portal, don’t count me as a fan. I was finally able to visit my first “365” store while recently in Los Angeles and I wasn’t too impressed. The good news was that pricing is much more aggressive than traditional WFM units and the perishables departments are solid, not spectacular. But the overall store layout, lighting and merchandising I thought were subpar. I may be wrong, but I found it hard to imagine that this format would translate well nationally...according to the New York Post, in an ef-fort to trim operational costs after its emergence from bankruptcy last July, Fairway Market is considering selling the prepared foods commissary and bakery distribution center in the Hunts Point section of the Bronx which opened in 2010. The “like no other market” merchant, which debuted its first new store in nearly three years in Brooklyn last month, is now con-trolled by PE firm GSO Capital Partners, an arm of the Blackstone Group…Brazilian PE firm 3G - owner of Kraft Heinz - whose appetite for growth is almost as aggressive as its broad cost-cutting measures, is dropping its efforts to acquire Unilever. The Dutch manufacturing giant already had already rejected 3G’s $143 billion bid and offered this explanation: “Kraft Heinz had the utmost respect for the culture, strategy and leadership of Unilever.” Sounds like a “face saving” exercise from the private equity firm to avoid potential litigious and costly battle, one that 3G would likely lose…the first new ShopRite corporate store (SRS) under the helm of Brett Wing (who was named president of ShopRite Supermarkets in January) will open in North Greenbush, NY (Rennselaer County) later this year. The 55,000 square foot store will be SRS’ fourth Albany area location. The corporate store arm of Wakefern Corp. currently operates 34 supermarkets overall. More Wakefern news: at this year’s FMI Midwinter Executive Con-ference, chairman and CEO Joe Colalillo was presented with the Robert B. Wegman award, which was given to the supermarket executive for “exercising entrepreneurial leadership in the design of retail strategies and imaginative merchandising.” This honor is much deserved because Joe’s vision and leadership skills are unparalleled in an industry with so much talent. Plus, he’s one of the really good guys in the entire grocery biz.

Local NotesOn March 9, Weis Markets cut the ribbon on its long-awaited 65,000

square foot store in Enola, PA. This new unit offers several notable wrinkles for the Sunbury, PA-based merchant, including its first in-store pub, an ice cream shop and juice bar encompassed in a “community market” design. Weis will need to be on its “A” game considering that rival Giant/Carlisle operates one if its best stores, a 76,000 square foot replacement unit that opened in late 2014, directly across the street…it was a busy month for earnings and we’ve got some highlights (and lowlights) to report.

While we’re on the subject of Weis Markets, the regional chain’s


From page 22

TAKING STOCKssssssssssssssssssssssssssssssIndependents Gather For C&S Party At NGA Show

C&S held a cocktail party for its independent customers attending NGA. This photo from the event features (l-r): Christopher Brown, C&S; Ames Arlan, Arlan’s Market; Melinda Mabile and Bob Morton, C&S; and Richard Patterson, Arlan’s Market.

All smiles for our photographer are Max Henderson (l) of Grocer’s Supply, Jack Shakoor (c) of Foodtown and Dante Franceschelli of C&S.

This photo features (l-r): Joe and Karen D’Onofrio of D’Onofrio Food Center; Bobby Lopez of Arlan’s Market, and Mari Bickmore and Christopher Brown of C&S.

Fred Foose (r) of C&S says hello to Scott Cummings (l) and Karen Allen of Cali-Kart.



JOH recently announced that Gary Diomede has joined the company as an account execu-tive in the company’s Billerica, MA office. Diomede joins JOH with experience from Advan-tage Solutions, Island Oasis Frozen Beverage Co., Eastern Sales and Marketing and Her-shey Foods. He has worked with various customers: CVS Heath, Publix, Ahold-Delhaize, Kroger and Supervalu.

“We are excited to have Gary join our team,” said Gerry Cas-tignetti, EVP, sales manag-er, grocery/frozen/dairy. “He brings a wealth of knowledge, professionalism and experience to our GFD Division. Gary is passionate about the industry and we look forward to having him grow our business to new heights.”

Jim Perdue, chairman of Per-due Farms, has announced the promotion of Randy Day to chief executive officer of Perdue

Farms, effective immediately. Day has served as chief operat-ing officer since May 2016. He will also serve on the company’s board of directors.

“Randy has done an out-standing job as chief operating officer over the past year, and he has my trust and the trust of our leadership team in this new role,” said Perdue, who has been chairman and chief executive officer of Perdue Farms since 1991. Day is the fourth CEO in the company’s nearly 100-year history. Perdue will continue to serve as chairman and company brand spokesperson.

“Randy has more than 36 years of experience in our com-pany, with deep knowledge of Perdue Foods and Perdue AgriBusiness. He has proven himself to be a business leader who understands the impor-tance of disciplined execution of our strategies and attention to competitive position and fi-nancial stewardship. He has a

deep respect for – and lives – our values. Randy embraces and drives change, and will provide the strategic leadership to make sure Perdue Farms remains in-novative, relevant and trusted as we move into our next century,” said Perdue.

Prior to being named chief operating officer in 2016, Day served as president of Perdue Foods since February 2015. He

joined Perdue Farms in 1980 and has held various positions of increasing responsibility in Perdue Foods and Perdue Agri-Business.

A native of the Eastern Shore of Maryland, Day graduated from Easton High School and received his bachelor of science degree in biology from Western Maryland College. He earned a master’s degree in poultry nu-

trition from the University of Maryland at College Park and completed the Advanced Man-agement Program at Harvard Business School.

Day served on the board of directors of the International Foodservice Manufacturers As-sociation, on the executive com-mittee of the National Turkey Federation and on the technical and regulatory committee of the National Chicken Council. He currently serves on the board of directors and executive com-mittee for the National Chick-en Council. In his community, he served on the board of the Mid-Atlantic YMCA, chaired the secondary education adviso-ry committee for the Wicomico County Board of Education and participated in the Wicomico County Mentoring Project. He currently serves as a member of the council at large of the Salis-bury Chamber of Commerce and the greater Salisbury com-mittee.

It’s time to “UnCork Your Creative Side”!Join us as we learn to paint our own glassware with Drinkable Arts!

Relax, get creative and have a drink while networking with emerging leaders and executives in the Mid-Atlantic Region.

Who Should AttendEmerging leaders, executives and industry men and women who would like to connect with other professionals in the Mid-Atlantic Region.

LocationNottingham’s 8850 Stanford Blvd., #1100Columbia, MD 21045(410)290-0077

RegistrationRegistration is required. Please RSVP by Wednesday,March 29, 2017 at newonline.org/events

Cost$40 Registration fee(Includes painting materials and heavy hors d’oeuvres)Cash bar

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landscape. For all of fiscal 2016 net earn-

ings totaled $1.98 billion, or $2.05 per diluted share, and identical supermarket sales growth, without fuel, was 1.0 percent. The company’s fiscal year net earnings per diluted share included charges related to the restructuring of certain multi-employer pension obliga-tions to help stabilize associates’ future benefits. Excluding the effect of these charges, Kroger’s fiscal year adjusted net earnings per diluted share were $2.12.

“True to our history, we will continue making proactive in-vestments in our ‘Customer 1st’ strategy to maintain our strong competitive position. We are lowering costs to invest those savings in our people, our busi-ness, and technology,” said Kro-ger chairman and CEO Rodney McMullen. “This approach will enable us to deliver on our long-term net earnings per diluted share growth rate target of 8-11 percent, plus an increasing div-idend, as it has in the past. In 2016, Kroger grew market share, increased tonnage, and hired more than 12,000 new store as-sociates. For 2017 and beyond, we will continue delivering for our customers while also setting the company up for our next phase of growth and custom-er-first innovation.”

Net earnings for the fourth quarter totaled $506 million, or $0.53 per diluted share. Net earnings in the same period last year were $559 million, or $0.57

per diluted share.Total sales increased 5.5

percent to $27.6 billion in the fourth quarter compared to $26.2 billion for the same peri-od last year. Total sales, exclud-ing fuel, increased 4.4 percent in the fourth quarter over the same period last year. Recent merg-ers with Roundy’s and Mod-ern Health contributed to this growth, Kroger noted.

Gross margin was 22.2 per-cent of sales for the fourth quarter. Excluding fuel, recent mergers and the LIFO charge, gross margin decreased 22 basis points from the same period last year.

Kroger recorded a LIFO charge of $0.2 million in the fourth quarter, compared to a $30 million LIFO credit in the same quarter last year.

Total sales increased 5.0 per-cent to $115.3 billion in fiscal 2016 compared to $109.8 billion in 2015. Excluding fuel, total sales increased 6.7 percent in 2016 compared to 2015. Gross margin was 22.4 percent of sales in 2016. Excluding fuel, recent mergers and the LIFO charge, gross margin decreased 7 basis points compared to 2015.

Operating, general and ad-ministrative costs as a percent of sales – excluding fuel, recent mergers, the 2016 restructuring of certain multi-employer pen-sion obligations, and the 2015 contributions to the UFCW Consolidated Pension Plan – declined 5 basis points; rent and depreciation with the same exclusions increased by 12 basis points in 2016.

Kroger reiterated that its long-term financial strategy is to use its financial flexibility to drive growth while also returning capital to shareholders.

In 2016, Kroger used cash to repurchase $1.8 billion in com-mon shares; pay $429 million in dividends; invest $3.6 billion in capital; and merge with Modern Health for approximately $390 million.

Capital investments, exclud-ing mergers, acquisitions and purchases of leased facilities, totaled $3.6 billion for the year, compared to $3.3 billion in 2015.

Return on invested capital for 2016 was 13.09 percent. This re-sult was affected by current year results and recently-merged companies.

Kroger said it anticipates identical supermarket sales, ex-cluding fuel, to range from flat to 1 percent growth for 2017.

The company expects net earnings to range from $2.21 to $2.25 per diluted share, includ-ing an estimated $.09 for the 53rd week.

Kroger expects the operating environment in the first half of 2017 to be similar to the second half of 2016. The company’s re-sults in the second half of 2017 are expected to show improve-ment as the company cycles the previous year.

The company expects capital investments, excluding mergers, acquisitions and purchases of leased facilities, to be in the $3.2 to $3.5 billion range for 2017.

Despite ID Decline, Kroger’s Total Sales Reach $115.3BFrom page 1

numbers were very good for its fourth quarter and 2016 year end. Adjusting for the extra week in 2016, the company’s fourth quarter sales increased 17.6 percent while comparable store sales were up 3.4 percent. “In 2016, we acquired and converted 44 stores in 96 days and generated more than $3 billion in sales for the first time in our 10- year history,” said Jonathan Weis, Weis Markets chairman and CEO. “We continued to improve every aspect of our operations in 2016, including supply chain, merchandising and in-store experience, which resulted in a year of strong sales and earnings growth.” During the 14-week period ended December 31, 2016, the retailer’s fourth quarter overall sales increased 26.0 percent to $925.1 million compared to $734.1 million for the 13-week period ended December 26, 2015. Fourth quarter net income increased 148.2 percent to $41.1 million. During that period, Weis Markets realized a one-time gain of $23.9 million on the purchase of the 38 Food Lion stores. Fourth quarter operating income increased 4.9 percent to $27.0 million compared to the same period in 2015. For all of fiscal 2016 and also adjusting for the extra week, the company’s 2016 sales increased 6.9 percent while comparable store sales increased 2.9 percent. With the extra week added, its 53-week period revenue increased 9.0 percent to $3.1 billion compared to $2.9 billion for the 52-week period in 2015. Year-to-date net income increased 46.9 percent to $87.2 million, while earnings per share increased 46.6 percent to $3.24 com-pared to $2.21 in 2015. Year-to-date operating income increased 8.3 percent to $98.3 million. Weis attributed its comparable sales and net income increases in 2016 to continuing price investments, disciplined sales promotions, an enhanced customer experience and improved supply chain efficiencies. It also benefited from strong increases in its pharmacy and fresh department sales, the company noted. Also reporting solid fourth quarter earnings in the U.S. was Ahold Delhaize. At its Ahold USA unit, operating margin was 4 percent, but as previously reported comp store sales declined 0.2 percent at its nearly 800 stores. The star of the show was Delhaize America’s contribution (Food Lion, Hannaford) where comps increased 2.2 percent and underlying operating margin was 3.6 percent. There’s no question that the newly formed Ahold Delhaize machine knows how to make money. As for AUSA, its ongoing reorg should lead to improved sales, too (if you believe their rhetoric). But as I’ve said many times, efficiencies and backroom enhancements will mean little if more attention isn’t paid to the stores – particularly staffing and training. At Food Lion, which just began its “easy, fresh and affordable” remodeling program at its160 store Greensboro, NC division, the upcoming onslaught of Lidl openings will be the biggest challenge that Le Lion has faced in years. Also reporting fourth quarter earnings recently was Publix. The employee-owned juggernaut, which will enter the Richmond market later this year, posted a solid 2.2 percent comp store increase (about the peer group average) while growing earnings by 4.5 percent to $544.5 million. “I’m proud of our Publix associates – the owners of Publix – for continuing to make us a leader in our industry and providing a great shopping experience,” said Todd Jones, CEO of the Lakeland, FL-based chain which operates 1,143 units in the Southeast. On the negative earnings track were Target and Sears Holdings. Target posted its third consecutive comp store decline (negative 1.5 percent in the quarter, 4.3 percent for the full year) in its recently completed fourth quarter ended January 28. With profits also decreasing 13.5 percent, CEO Brian Cornell went on the offensive, noting that the Minneapolis-based mass merchant would “accelerate investments in a smart network of physical and digital assets as well as our exclusive and differentiated assortment, including the launch of more than 12 new brands, representing more than $10 billion of our sales, over the next two years.” According to the former Pepsi, Safeway and Wal-Mart executive, Target’s ramp-up pf a focus on small-for-mat stores will yield more than 100 such locations expected to open within three years. Another 600 stores are set for overhauls over the same timeframe, to better reflect the brand. “We have some old, tired stores that haven’t been updated in years,” Cornell told financial analysts in the post-earnings conference call, adding that “it’s unrealistic to ask people to


From page 24


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groups wrote, adding: “With the agriculture and rural economy struggling, households across the country struggling to meet their basic needs for nutrition, and farm income down 46 per-cent from only three years ago, it would be perilous to hinder development and passage of the 2018 Farm Bill with further cuts.” The lines are now begin-ning to be drawn in the sand. When specifics about the farm bill begin to surface over the next year and a half, they will be highlighted in this column.

Milk Wars Brewing

Until recently the battles in the dairy industry were between dairy farmers and producers of

milk-based products. It looks like that is about to change. The dairy industry is expressing con-cern about growing competition from plant-based milk substi-tutes like soy and almond milk. It has been pressuring legislators to make the Food and Drug Ad-ministration FDA enforce the

standards of identify for milk, which limit it to the “lacteal se-cretions” of cows. Senator Tam-my Baldwin (D-WI) and Repre-sentative Peter Welch (D-VT), both from dairy-rich states, have introduced “The Dairy Pride Act” to force FDA to enforce the standard of identity. The Plant-Based Foods Association has fought back by defending the use of the term milk in a letter to FDA’s Center for Food Safety and Applied Nutrition, which claims that the courts have agreed with its position. In ad-dition, the Good Food Institute, which supports plant-based dairy substitutes, has launched a petition opposing the Dairy Pride Act. Stay tuned. The fight is just beginning.

SNAP Data Release Delayed

I previously reported that SNAP sales data from retailers was going to be made public. Well, the court order issued by a Federal judge in South Dako-ta requiring USDA to release the annual amount of federal taxpayer money going to spe-

cific retailers who participate in the SNAP program was stayed on January 30 when the Food Marketing Institute (FMI) peti-tioned to participate in the case. The information will not be re-leased until the case is decided. SNAP also made recent news when the House agriculture committee announced earlier that it would hold a hearing on what SNAP recipients spend their benefits on in food stores. The hearing held last month focused on the amount of ben-efits spent on sweetened drinks. Members of the House Agricul-ture Committee showed little interest though in imposing re-strictions on SNAP purchases.

FEED THE TRUTH Launched

A new food policy and nutri-tion organization – FEED THE TRUTH - has been formed in Washington, DC by the CEO of KIND healthy snacks, Daniel Lubetzky, who has pledged $25 million to fund it. FEED THE TRUTH’s mission is to coun-teract the influence of the food industry over nutrition policy.

Another Food Waste Bill Introduced

Maine House member Chellie Pingree (D) has announced that she is sponsoring “The Food Donation Act of 2017,” in an effort to reduce food waste. The bill seeks to update food dona-tion regulations by expanding liability protections for food do-nors. Pingree also plans to intro-duce two other food waste bills in the next month. One of the two new bills would use tools like tax credits, research, and a public awareness campaign to address food waste, while the other would standardize date la-beling on food by distinguishing between quality and safety date labels.

COOL Just Won’t Go Away

You may recall that USDA’s mandatory program for Coun-try of Origin Labeling (COOL) was eliminated after it was found to be in conflict with existing treaty obligations by the World Trade Organization (WTO). Two state legislatures, Wyoming and South Dakota, recently tried to enact COOL bills within their own states. The measures failed. Cattlemen’s legislative groups known as R-CALF USA,

are now asking U.S. Congress to reinstate the mandatory COOL Act that was repealed. Don’t count on it.

Food Allergens In The News Again

USDA’s Food Safety and In-spection Service (FSIS) has reported a notable increase in the number of recalls due to undeclared allergens in regulat-ed products. An all-day public meeting will be held on March 16 at USDA to address the is-sue. Most of the concerns focus around what is called the “Big 8,” which accounts for 90 percent of food-related allergic reactions. The “Big 8” food allergens are wheat, crustacean shellfish, in-cluding shrimp, crab and lob-ster, eggs, fish, peanuts, milk, tree nuts – almonds, pecans, and walnuts, and soybeans. In addition to the public hearing, FSIS has developed a compli-ance guideline to assist retailers in addressing the hazards posed by allergens in food products.

Barry Scher is associated with the public policy firm of Policy-Solu-tions LLC and may be reached at [email protected].

From page 10

Legislative Line

October 10-12The National Frozen and Re-

frigerated Association will hold its convention at Orlando World Center Marriott. For more in-formation, or to register, call 717.657.8601 or go to www.NFRAExectutiveConference.org.

October 18The Greater Philadelphia

chapter of the Network of Exec-utive Women will host a learn-ing event at a location to be

determined at a later date. For more information, go to www.newonline.org.

October 20-22PMA Fresh Summit 2017 will

be held in New Orleans. For more information, go to www.pma.com.

If you would like to publish an event in our trade calendar, please send entries to Terri Malo-ney at [email protected]. Include a contact name and phone number, email address or web address for reservations or additional information.

AISLEchatter

From page 4

a great tribute to veterans still serving and retired, and raised money for non-profit organiza-tion Friends in Service of Heroes (FISH), which FISHes for vet-erans, active duty, and military families to serve to whom they provide food, housing assis-tance, service dogs, TrackChairs and more. The selling show fea-tured Joe Everson, an emerging

artist who is best known for singing the National Anthem while painting the raising of the flag at Iwo Jima. After doing a live painting of Iwo Jima at the show, two of Everson’s works were auctioned off on-site. The Iwo Jima painting was also auc-tioned off at a retailers’ cocktail party. The monies, totaling just over $3,500, were donated to FISH. A TrackChair, which is an all-terrain wheelchair that also allows its user to “stand” was also donated thanks to C&S and the participating show vendors who agreed to share the cost of it. The TrackChair was awarded

to former Marine sergeant Den-nis Best, who lost both of his legs during combat in Vietnam. He was selected through the vet-ting efforts of FISH and with the assistance of two retired Marine major generals. All addition-al funds raised over the cost of the TrackChair were donated to FISH and C&S matched up to $10,000 on all contributions made. Kudos to C&S for not only selecting such an honor-able theme this year, but for also giving back to our veterans.

Until next month…

TRADE CALENDERFrom page 2

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shop the way their parents did.” And at Sears Holdings, fourth quarter numbers continued to resemble a train wreck. The Hoffman Estates, IL-based firm posted a $607 million loss in the period; same store sales fell an incredible 10.3 percent, all leading to a 58 percent share decline over the past 12 months. However, CEO (Slow) Eddie Lampert apparently has a new idea that he believes will provide some relief. Last month, the bedraggled operator unveiled its first DieHard Auto Center (Driven by Sears) in San Antonio, TX. I’m not certain if the new concept and brand were derived from the car battery of the same name or whether the company was describing its ongoing descent into the inevitable…often one of the byproducts of disappointing earnings is an ensuing reduction of staff, and such is the case at Kroger, which has offered buyouts to approximately 2,000 associates. The company said about 1,300 employees are expected to accept the voluntary separation package and the Cincinnati-based supermarket chain said it will announce the amount of saving generated by the buyouts in its Q1 earnings report in June. While the big K may be currently undergoing some in-flight turbulence, I for one have not lost any confidence in the ability of the industry’s biggest pure-play supermarket operator to do what’s needed to get back on course. And that’s primarily because, in my book, fundamental soundness almost always overrides shorter term issues like deflation and price wars…Acme Markets, which has struggled with assimilating the approximately 75 stores it acquired from A&P 18 months ago (particularly in Northern New Jersey, New York and Connecticut) recently held a vendor meeting at its store in Pennsville, NJ. Primary speakers were president Dan Croce and Albertsons EVP Jim Perkins (who preceded Croce as Acme president). As usual, both men gave candid, honest views of the company’s current status, acknowledging that every day retails were too high and that continuing attention has to be paid to upgrade the store base. These dudes don’t waste time. In the two weeks since the meeting was held, Acme has lowered hundreds of prices while also accelerating their store remodeling agenda and reset program. Twenty-three grand re-openings are slated for 2017 (some have already been completed) and, two new stores will debut as well - in Philadelphia (Front and Snyder) and in Yonkers, NY. And before the year has ended, Acme will have completed about 100 center store resets, a company record. In fact, Croce stated that Acme will receive more cap-ex dollars than any other Albertsons division in 2017…Wegmans and other retailers (and some trade journalists) have long understood that when it comes to politics, we all should emulate Switzerland. After the Prince William (county), VA chapter of the National Organization for Women pressured the Rochester, NY-based uber-retailer to stop selling five varieties of Trump Winery products (formerly Kluge Estate winery based in Charlottesville), Wegmans stuck to its age-old policy of letting its customers decide. “Our role as a retailer is to offer choice to our customers,” said Jo Natale, VP-media relations (and one of the best in business).” Individual shoppers who feel strongly about an issue can demonstrate their convictions by refusing to buy a product. When enough people do the same and sales of a product drop precipi-tously, we stop selling that product in favor of one that’s in greater demand.” Apparently that boycott effort has backfired. According to the Richmond Times-Dispatch, all varieties of Trump brand wines at nine of Wegmans’ 10 Virginia units are out-of-stock and the remaining inventory at its newest Old Dominion unit in Charlottesville is very depleted. As noted, politics and sales are usually not good bedfellows…FreshDirect, the online grocery delivery service, that owns the Manhattan market, will be expanding its service the Washington, DC market in Q2. Fueled by a $189 million cash infusion from J.P. Morgan, the Long Island City, NY company expanded to Philadelphia several years ago and has launched FoodKick, an on-demand mobile delivery app and service…brave dude award of the month goes to Robert Beck III of Conewago Township, PA, who after seeing a deer crash through the window at a Giant/Carlisle store in Manchester Township, PA, wrestled the ruminant doe to the ground and prevented it from barreling into the supermarket’s glass-enclosed bakery case. “When I seen it, it was game on,” said Beck (apparently in his best Pennsyl-tucky


From page 26


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English). Beck grabbed the deer by the neck, and with the help of two other patrons, was able to lead it outside the store…very sad to report the death of Robert Osborne, the primary host of Turner Classic Movies, who passed away earlier this month at the age of 84. If you are a life-long movie aficionado, as I am, you couldn’t help but appreciate Osborne’s encyclope-dic knowledge and passion for film. Despite some health issues over the past several years, the former failed actor never lost his dedication and enthusiasm for all things cinematic…also leaving us were two unsung musi-cal prodigies. Jazz singer Al Jarreau passed away last month at the age of 76. Blessed with a tremendous vocal range, the Milwaukee native didn’t release his first album until he was 35. Over the next 40 years he would release 19 more albums and was rewarded with seven Grammys in the jazz, pop and R&B categories – the only vocalist to be honored in all three genres. Entering guitar heaven is Larry Coryell, whose fusion style made him a pioneer of jazz-rock. Coryell’s career took many twists (by his own design). On the jazz side he collaborated with such greats as Miles Davis, Ron Carter and Chet Baker. And in the late sixties, he delved into psyche-delic rock with his band The Free Spirits, in which he composed, sang and played the guitar and sitar. A great technician who also possessed creative jamming skills, Coryell, 73, released more than 60 solo albums in a career that spanned more than 50 years. He died in his sleep after performing the last of two shows on February 18 at the Iridium Jazz Club in New York City…passing away too early was actor Bill Paxton, who among his 93 movie and TV roles included such blockbusters as “Apollo 13” (1995); “Twister” (1996); and “Titanic” (1997). We all have those “never forget” moments and Paxton’s came as an eight year old when the Fort Worth, TX native was taken to Dallas by his father to see President John F. Kennedy on the fateful morning of November 22, 1963. Paxton was only 61 when he died…the progenitor of all reality courtroom TV shows has now received his final verdict. Yes, sadly, Judge Wapner is dead. Former Los Angeles Superior Court Judge Joseph Wapner died in his sleep late last month at age of 97. From 1981 to 1993, “The People’s Court” was where you could find the good judge on hundreds of local TV stations where he would adjudicate small claims cases, sometimes involving ridiculous confrontations such as when a women bought a birthday cake for her daughter for $9.00. She said the cake was moldy and the baker offered her a refund of $4.50. She then picketed the bakery for six hours and then filed her claim. “I told her that persistence pays off and awarded her $9.00.” Actually, as a real jurist, Wapner was considered an innovator. He was credited with developing a system aimed at saving time for trial participants and his courtroom (which was part of the largest court in the U.S.) was among the first venues to test videotaping of trials in 1971.

From page 30


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