Giant Food to Get $175M Capital Infusion; Stop & Shop Also Gains After Nearly a Decade of Mini- Was Previously Owned by the Dar- Trolled the Lion’S Share of Market
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INSIDE TAKING THIS ISSUE STOCK by Jeff Metzger Acosta Reorg Creates Uncertainty About National Broker’s Long-Term Health Safeway Eastern Hosts 19th Annual ‘Season The first call came from a large retailer in the Northeast. He asked if I Of Giving’ In DC was aware of the recent changes at Acosta Sales & Marketing, the second 4 largest national brokerage organization and one of the most influential sales and merchandising companies in the grocery business. I have been following the Jacksonville, FL-based firm for many years and was certainly aware of some of their financial issues and organization- al changes that have been made in the past few years, especially since private equity firm The Carlyle Group acquired Acosta in 2014. But as I further researched the current changes, I was surprised to learn the depth Bozzuto’s Among of its recent restructuring. Featured Exhibitors At According to a video recorded by new CEO Alejandro Rodriguez Bas 16 NY Produce Show Vol. 74 No. 12 WHOLESALERS ISSUE December 2018 See TAKING STOCK on page 6 Parent Ahold Delhaize Tells Investors It Will Focus On Expanding Omnichannels, Technology Giant Food To Get $175M Capital Infusion; Stop & Shop Also Gains After nearly a decade of mini- was previously owned by the Dar- trolled the lion’s share of market. mal store-driven capital invest- renkamp family. It plans to open Next up is revitalizing its more ment, the Ahold USA banners in its first Giant Heirloom Market than 50 stores on Long Island and the Ahold Delhaize USA lineup next month in Center City Phil- by 2023, the Amsterdam-based will be getting considerable atten- adelphia, its first small format organization is expected to spend tion over the next few years. model. And in October, the di- as much as $2 billion remodel- GREEN VALLEY MARKET HELD A PREVIEW PARTY DECEMBER 13 FOR Earlier this year, the best per- vision acquired five Shop ‘n Save ing Stop & Shop’s more than 400 its third store, a unit at the site of a former Mars Super Market in Timo- forming unit within the original stores in Maryland, Pennsylvania, stores that cover the New England nium, MD. Welcoming guests to the newly refurbished 31,256 square Ahold USA network – Giant/ West Virginia and Virginia from and Metro New York markets. foot store are Green Valley Market’s (l-r) store manager Rick Fischer, Martin’s - was given $70 million UNFI. Those stores were former- And earlier this month, the Benjy and Barbara Green and Rick and Darla Rodgers. Additional photos are on page 14. in store improvement funding. ly Food Lion stores before the third original Ahold USA banner That investment will yield six new government ordered them to be – Giant Food – said it would be stores, five new fuel stations and divested as part of the Ahold-Del- receiving $175 million targeted C&S, Wakefern, UNFI Outpace All two major remodelings. The Carl- haize merger in 2016. for store improvement and mar- isle, PA-based brand also recently At Stop & Shop, Ahold Del- ket expansion over the next two Wholesale Grocers In Northeast acquired and last month opened haize’s largest brand, the Quincy, years. This significant expenditure C&S Wholesale Grocers is the Martin’s, Giant Food (all Ahold a new Lancaster, PA location that MA merchant will also be re- will include one new store and 24 leading wholesaler in the Mid-At- Delhaize USA firms), Tops Mar- ceiving substantial capital over store remodels. These efforts are lantic and Northeast market area, kets, Fairway Market, Gerrity’s, the next five years. In the last in addition to the recently an- according to data compiled by Musser’s and independent retail- two months, the division spent nounced $21 million investment Best-Met Publishing Co. The ers that are part of the Key Food, approximately $70 million up- into a new Giant in Olney, MD, Keene, NH-based privately held Associated Food Group and Alle- grading 21 stores in the Hartford, See GIANT/AHOLD wholesaler that supplies retail- See WHOLESALERS CT market where it long has con- on page 18 ers such as Stop & Shop, Giant/ on page 10 sssssssssssssssssssssssssssssssssssssssssssssssssssssssss TRADE CALENDAR February 24-27 March 17-19 Registration opens in January at October 17-19 The NGA Show will be held at Seafood Expo International will https://www.iddba.org/. PMA’s Fresh Summit will be held the San Diego Convention Center. be held at the Boston Convention in Anaheim, CA. For more informa- For more information, go to www. Center. For more information, or to June 23-25 tion, go to https://www.freshfrom- thengashow.com. register, go to https://www.seafoo- The Summer Fancy Food Show mexico.com/event/pma-fresh-sum- dexpo.com/north-america/. will be held at the Jacob Javits Cen- mit-2019/ Who March 12-13 ter in New York City. Saint Joseph’s University’s food May 7-8 If you would like to publish an event marketing program and the Ita- DPI Specialty Foods will hold its September 11-14 in our trade calendar, please send ly-America Chamber of Commerce 2019 holiday trade show in Balti- Natural Products Expo East entries to Terri Maloney at tmalo- knows? will host their inaugural Internation- more. will be held at the Baltimore Con- [email protected]. Include a con- al Specialty Food Summit at Saint vention Center. For more informa- tact name and phone number, email Joseph’s University’s Philadelphia June 2-4 tion, go to https://www.expoeast. address or web address for reserva- campus. For more information and IDDBA’s 2019 Dairy-Deli-Bakery com/ee18/public/Content.aspx- tions or additional information. to register go to: www.sju.edu/ISFS. Expo will be held in Orlando, FL. ?ID=1068697&sortMenu=109023. Is your next event listed in the Mid-Atlantic food market’s number one calendar of events? Let us know, we’ll let our readers know. We’ll publish your special event listing in the Trade Calendar of Events. Contact Terri Maloney, Editor 410-730-5013 or tmaloney@best- met.com 2 | FOOD WORLD December 2018 www.best-met.com www.best-met.com December 2018 FOOD WORLD | 3 one of the intrigued consumers the U.S. Environmental Protec- the revelation that protein meat are honored to have these on- who went online to buy it. tion Agency (EPA). The FRC is was most needed by hungry going efforts recognized by the On the flip side in what may a voluntary program in which families but often in short sup- EPA.” be a lesson in what-not-to- participants pledge to provide ply, can largely be credited for All 172 Giant/Martin stores do in marketing is the Pitts- a food waste baseline along with the recognition bestowed on participate in the “Meat the burgh-based manufacturer annual goals to prevent food them from the prestigious gov- Needs” program with the meat Primal Palate. The paleo spice waste, donate wasted food and ernment agency. Through this donations delivered to regional company is being taken to or recycle food scraps in a program, stores safely freeze and food bank partners by compa- Maryland federal court by in- state-permitted non-landfilldonate meat that is pulled from ny trucks. All of this is part of dustry titan McCormick & Co. destination. EPA regional offic- sale a day before its sell-by date. a company-wide sustainability for trademark infringement of es across the country provided This product is safe, consumable initiative which includes plans its Old Bay seasoning by Pri- recognition to FRC participants food that rather than going into to reduce food waste by 50 per- mal Palate’s “New Bae” sea- and endorsers for outstanding landfills is being sent to regional cent by 2025. soning blend (which went on accomplishments in preventing food banks to feed those most in Also in the spirit of giving, the market in October 2017). and diverting wasted food and need. Weis Markets joined customers AISLE McCormick, producer of the the Carlisle-based retailer was “As a food retailer we are com- on the National Day of Giving chatter iconic Old Bay, sent the start- one of the EPA’s three region mitted to reducing waste and (November 27) in supporting up a cease-and-desist letter in 3 (Delaware, DC, Maryland, minimizing our environmental local non-profits by pledging By Karen Fernandez April and is arguing (according Pennsylvania, Virginia and West impact, while at the same time to match customer donations to a story in Bloomberg about Virginia) winners of the award maximizing food donations to collected that with a corporate The holiday season can give the lawsuit) that “the New Bae (the other two being UEmpow- our regional food banks,” said check. Customers were invited to many companies not only the name confuses consumers into er of Maryland and the Univer- Bertram. “Our ‘Meat the Needs’ donate to a local nonprofit, cho- opportunity to showcase their thinking the two spices are re- sity of Pittsburgh). According program has been a game sen by employees at each store creative side, but to also have lated and diminishes the good to Nicholas Bertram, president changer for our company and location, by adding $1, $3 or $5 some fun while doing it. KFC reputation and value of its Old of Giant/Martin’s, the compa- our food bank partners, divert- when they check out at registers, (Kentucky Fried Chicken, for Bay trademark.” While in this ny’s “Meat the Needs” program, ing food from landfills and onto See AISLE CHATTER those of you who have been day where infamy over integrity which was started in 2008 after the plates of those in need.