PBG continues scholarship commitment The AFD Foundation, Inc. is an additional $100,000 to the In order to reach the $1 million pleased to announce the continued program. AFD Foundation is in the goal, AFD Foundation is asking for commitment of a joint effort with process of raising $500,000 to match support from the food and beverage Pepsi Bottling Group that is well Pepsi Bottling Group's donation, industry. AFD Foundation, Inc. is on its way to raising $1 million which will bring the total to its $1 a 501 (c)(3) corporation, donations for educational scholarships. The million goal. are tax deductible as a charitable scholarships are available to students “We are working in partnership contribution to the extent provided who are capable of attending college with the AFD Foundation to fund by law. To donate, please make but might not be eligible for other this scholarship program to give checks payable to AFD Foundation scholarships and who may not deserving kids a chance to attend and send them to AFD at 30415 W. otherwise be able to afford tuition college when extra financial 13 Mile Road, Farmington Hills, MI Make a New Year's Resolution you'll want without assistance. assistance is needed,” said Dave 48334. to keep Resolve to add the 22nd Annual Pepsi Bottling Group has already Dempsey, general manager of Pepsi See page 10 for information on Trade Show to your list for 2006. AFD is donated $400,000 and has pledged Bottling Group. applying for a scholarship. planning ten full hours of uninterrupted tjuying, along with fun and terrific phzes.

With many booths already filled, exhibitors are making plans that guarantee excitement for trade show attendees AFD, GLPRA near Merger Shenwod Food Distributors will have 50 booths this year, new products will be By Jane Shallal nlroduced at the show and show specials AFD President The newly combined group would will help your bottom line for months to become the largest organization of come its kind in the Midwest and one of I am pleased to report that the repair garages, the common, uniting the largest in the country. AFD's Plan now to save this spring at the 22nd leadership of the Associated Food element is “independent businesses.*’ 3,000-plus locations and Annual Trade Show. Dealers (AFD) of Michigan and the In the larger picture, our competition Great Lakes Petroleum Retailers GLPRA's 1,500-plus retail locations See the ad on page 19 and call AFD for is not each other but predatory Association (GLPRA) have moved would provide massive grass roots more information on exhibiting or attending merchandisers like Wal-Mart and close to finalizing a merger between fire power in Michigan. Ohio and the show (248)671-9600. Sam's Club that hurt independent Washington D C., where legislative the two organizations. Discussions businesses. A merger of this nature and regulatory issues have taken on have been ongoing since 2004. The will allow increased buying power for increased importance in recent years. GLPRA includes the Service Station goods and services, increased political Trends in association management Dealers Association (SSDA) of strength and operational synergies. u*tt AFO's new Chairman...... 3 have seen a number of association Michigan and the Ohio Petroleum Meetings to finalize the details Retailers Association (OPRA). The mergers occur over the past few Things art looking up in C lio ...... 8 of a potential merger are currently years. In Michigan, the most recent discussions have been welcomed underway with plans to close a Slurtren's vision for Spartan...... 16 merger took place between the and encouraged by AFD’s Board of deal in the first quarter of this year Michigan Underground Contractors Rollins brings experience Directors and the GLPRA's Executive subject to approval of both Boards of toM.CC...... is and the Michigan Road Builders Committee. Directors. The headquarters of the Association. The changing economy, merged organizations would remain shifting national trends and increased in Farmington Hills, Michigan with Associated Food Dealers competition in the marketplace have PR SR T STD branch offices in Lansing, Columbus 30415 W.1 3 Mile Road U.S. Postage caused industry associations to look Farmington Hills, M l 48334 and Cleveland. Ed Weglarz, currently PAID to mergers for faster growth and Executive Director of SSDA. will DETROIT, Ml economies of scale. Change Service R equested become Executive Vice-President- PERM IT #36 Today, the retail food and beverage Petroleum for the newly named business is increasingly cutting Associated Food & Petroleum Dealers across many categories. Service (AFPD). stations, liquor stores, independent Please call me directly at (248) 671- and dollar stores are all 9600 if you have any questions or to a part of our industry. Although the express your opinion. GLPRA also represents automotive BP

2 | AFO Food & B e v era g e R E P O R T [ ■ £ ;uTIVE COMMITTEE Chairman'sMESSAGE

Fred Oally Chairman Medicine Chest I am honored to serve as your Chairman

Chris Zebari Vice Chair Membership By Fred Dally that she will meet the challenge with New Hudson Food Market AFD Chairman honesty and integrity. Each day can bring new trials and together, Joe Bellino, Jr. Vice Chair Legislation As your new chairman, I want to we will work to address them. AFD Broadway Market. Region 2 begin my First column by saying constantly monitors our government that I look forward to working with and the legislation that is introduced. Al Chittaro Vice Chair Long Range Planning the AFD board, staff and - most Often we are on the forefront, Faygo Beverages. Inc importantly - its members. working to introduce bills that can AFD is one of the strongest trade benefit our industry. Still more often, John Denha /ice Chair Community Relations associations of its kind in the country we are working behind the scenes 8 Mile Foodland and its members are what keep it to combat legislation that could be healthy, vital and powerful. Jim Garmo detrimental. In addition, as members Treasurer I was very proud to receive the bring new problems and concerns threat of the bottle bill expansion, gavel from past Chairman Ronnie to our attention, together we will Jim Hooks alcohol sales by big box retailers, Jamil at the “AFD Super Ball 90” on work toward a solution. Finally, Secretary license fee increases on beer, wine Metro Foodland January 28 at the Sterling Inn. What AFD continues to strive to serve its and liquor and spreading food stamp a night it was! It was wonderful members with programs, events and payments throughout the month to see all of you there, enjoying services that meet your needs. AFD's EMERITUS DIRECTORS are just a few of the issues that we the great food, fabulous music and staff will continue to deliver the types Ronnie Jamil Mug & Jug Liquor Stores are currently confronting and will camaraderie. It was a great beginning of programs and services that you Terry Farida Value Center Markets continue to work on for our members. to my term as your chairman and need to effectively and efficiently run Sam Dallo In N Out Foods Also on AFD's agenda is the issue Bill Viviano House of Pnme I look forward to serving you your business. of retailers competing with each other Mark Karmo Golden Valley Food Center throughout the next two years. As we face the ever-increasing for lottery customers by advertising First, I would like welcome AFD's challenges of the food industry, I RETAIL DIRECTORS higher payouts for winning tickets. new president, Jane Shallal. Jane want to assure you that I take my As the year progresses I'm sure that Amir Al-Naimi Joy Thnfty Scot has a big role to fill, and I am certain new position very seriously. The Mary Dechow Spartan Stores Inc Region 3 there will be additional challenges Kristin Jonna Merchant's Fine Wine- Region 1 for AFD. We are here for you. our Alaa Nairn! Thnfty Scot members, and I am committed to Mike Shina Krown Supermarket working for the benefit of Michigan's Thom Welch Hollywood Super Markets The Grocery Zone Brian Yaldoo Park Place Liquor retail food and beverage industry. By David Coverly Our door is always open. If you SUPPLIER DIRECTORS have a question, concern or problem, Gary Davis Praine Farms/Tom Davis & please call AFD. We can't help Sons Dairy Co you if we don't know the situation. Bobby Hesano D & B Grocers Wholesale AFD's phone number is (248) 671- Earl Ishbia Sherwood Food Distnbutors Mike Rosch General Wine & Liquor Co 9600. Our fax is (248) 671-9610. Scott Skinner Diageo If you prefer, you can email to Tom Waller CROSSMARK Sales Agency AFD at [email protected]. or call me Region 5 personally at (248) 763-4777. Percy Wells Coca-Cola Region 6 I look forward to serving AFD and m m M a n n its members. You have a very strong and active association. This industry Jane Shallal President Daniel Reeves Executive Vice President is fortunate to have AFD and I am Michele MacWilliams Vice President of honored to be its chairman. Communications Cheryl Twigg Controller Cathy Willson Director of Special Events Bay Amyot Director of Advertising AFD MEMBERS: Harley Davis Coupon Manager tamar Moreton Executive Assistant We want James V. Bellanca. Jr. to hear from you! Buttie i DeLlsle Legal Counsel Karoub Associates Legislative Consultant The AFD Food & Beverage Report will G»daleto & Ramsby Health Care print new product releases as space pat Gregory uHYA

M arch 2006 | 3 AFD on theSCENE Calendar Detroit Mayor, AFD, Chaldean Chamber April 25 & 26,2006 AFD Annual Trade Show come together for town hall meeting Burton Manor Livonia, Ml Contact: Cathy Willson that we work together to continue people of different ethnic and racial the pride and the spirit our visitors backgrounds to his administration, (248) 671-9600 saw when they came to Detroit. he stated that Detroit’s greatest July 12,2006 The Mayor pledged more economic attribute is its diverse population, AFD Annual Scholarship Golf Outing • t development, through improved and that he is committed to making Fox Hills city services and cost effectiveness Detroit a city which represents all Plymouth, Ml of having a business in the city of the populations. This includes hiring Contact: Michele MacWilliams Detroit. qualified individuals of different (248) 671-9600 The Mayor also spent time with groups to city government. the group responding to many of On several occasions, Mayor September 13 & 14,2006 their questions. Questions regarding Kilpatrick recognized the Associated AFD S.E. Michigan Holiday Show the police department and the need Food Dealers of Michigan as an Rock Financial Showplace for more security were raised by important and viable organization Novi, Ml members. He acknowledged better which has a major impact on Contact: Cathy Willson police response time to citizen business development and relations By Jane Shallal (248) 671-9600 AFD President complaints were needed and would in Detroit, and vowed to work work with the police department closely with the AFD in the future. September 19,2006 The Associated Food Dealers, to improve the problem. Many AFD West Michigan Holiday Show along with the Chaldean Chamber business owners DeVos Place of Commerce, hosted a town hall also questioned why Grand Rapids, Ml meeting with Detroit’s Mayor liquor license transfer Contact: Cathy Willson Kwame Kilpatrick on Tuesday, investigations by (248) 671-9600 January 17, 2006 at the Shenandoah the Detroit Police Department take over Country Club in West Bloomfield. Mayor Kilpatrick Statement of Ownership The event drew over 200 people, one year to complete addresses The AFD Food & Beverage Report when compared to just the crowd at largely those who do business in the (USPS 082-970; ISSN 0894-3567) City of Detroit. three to four months Shenandoah is published monthly by Metro The Mayor warmly greeted the in other cities. The Country Club. Media Associates, Inc. (MMA) for Mayor acknowledged the Associated Food Dealers of group, stating that his re-election Michigan (AFD) at 30415 W. 13 and upcoming events will give us an that there were likely Mile, Farmington Hills, Ml 48334. opportunity to focus on the progress unnecessary delays Material contained within The AFD we are making in rebuilding Detroit in the process and Food & Beverage Report may indicated that he not be reproduced without written and that he wished to work closely permission from AFD. with area businesses to that end. would work toward resolving the issue. The opinions expressed in this Building on a theme of "Detroit magazine are not necessarily Love,” the Mayor indicated that we When asked whether those of MMA or AFD, its Board have such an opportunity to have we can count on of Directors, staff members or more appointments of consultants. Bylined articles reflect people come here see a new Detroit the opinions of the writer. - a Detroit infused with a new spirit POSTMASTER: Send address and energy. When asked to describe changes to AFD Food & Beverage what he meant by "Detroit Love,” 30415 W. 13 Mile, Farmington Hills, he replied, “Detroit Love involves Ml 48334. countless experiences that are unique ADVERTISERS: For information on to Detroit." advertising rates and data, contact AFD, Cathy Willson, 30415 W. 13 Referring to the upcoming Super Mile, Farmington Hills, Ml 48334, Bowl game, the Mayor believed that (248) 671-9600 or (989) 386-9666. as our visitors start to talk about AFD works closely with the following what they actually see here, that will associations: begin to “transform the messages IFDA that we've been sending out and have been hearing about ourselves around the country and around the globe." But he warned that, after these 9m Detroit sports events are concluded and visitors and spectators are gone, NOA “It’s just us” and it is very important

4 | AFD Food & BeverageREPORT m 'C h ig a m l o t t e r y Winning numbers OF Jo L i e wsSSmn 'OUR n u m b e r s “ ■ M tom ami

Pf'2e Prize Pfize

™"*«iio(rous m m n r,l»*HI NN/NG NUMBERS “"PmeitaMW,**- MICHIGAN "wer.• Keveoloncwegi 0 ,-A-, " ■ VOIOOO

with Detroit Red Wings® and Pac-Man™ Gash instant games.

Our first-ever Detroit Red Wings instant ticket gives Its ba-a-a-ck! One of the most successful instant your players a shot at S20.000 on the spot - and - games ever - Pac-Man" Cash! Customers can win bonus drawings to win an NHL Dream trip to an up to $20,000 instantly, and a chance at one of 30 NHL city of their choice, plus lots of great NHL authentic Pac-Man arcade games. Red Wings merchandise!

These cool instants from the Michigan Lottery are the honest tickets in town!

i and m arks depicted herein are the property of Rights ftaaaned PAC-MAN” ONemco Ltd

M arch 2006 | 5 Champagne in a can gets firm bid for entire company A glass of wine is typically Much like canned beer, according served in, well, a glass. However, to Martin, sparkling wine in a Albertsons Inc. confirmed this billion; a group led by private-equity Napa Valley’s Niebaum-Coppola single-serve can is lighter, can chill morning that “it has received firm Cerberus Capital Management vineyard has introduced a new, quicker and is more portable than a an offer for the purchase of the LP and Kimco Realty Corp. was bubbly, single-serve wine beverage bottle, which can break. entire Company. The offer was going to buy groups of poorly that comes packaged in an “It lends wine to some other received from a consortium that had performing Albertson’s stores for aluminum can. occasions, like at picnics, poolside, previously submitted an offer for the the value of their real estate; and The Washington Post writes that sporting arenas,’ which Martin told company in December.” Supervalu was going to swap stock Sofia Mini Blanc de Blancs, named the Post, are places “where beer The Albertsons board has and cash for hundreds of Albertson's after Hollywood producer-director used to rule.” authorized management to negotiate better-performing stores, including and vintner Francis Ford Coppola’s Wine Business Monthly called the with the consortium. The offer its stores in the Chicago area" actress-daughter Sofia Coppola, is cans “the hottest packing innovation reportedly is for $9.6 billion - the Now, the Chicago Sun Times a bubbly blend of sparkling white to hit the wine industry,” writes the same amount as the offer previously reports this morning that Supervalu wine in a pink 187-ml aluminum Post. rejected - but with provisions that could sell its stores in can—similar to Red Bull and other could make it more acceptable. Chicago to the Cerberus hedge fund energy drink packaging—with an But how does sparkling wine in The Wall Street Journal previously group so that it could be clear from extendable plastic straw affixed to a can and sipped through a straw reported that “drugstore chain CVS a antitrust perspective to buy Jewel. its side. taste? Corp. was going to buy Albertson’s -MorningNewsBeat.com “It is cute,” Niebaum-Coppola Through a Consumer Reports pharmacy business for as much as $4 President Earl Martin told the Post, blind taste test, wine consultants adding, “If wine is going to become called the beverage “simple” and more popular, it has to reach out to “light-bodied,” and that it is better Here’s to new beer ads a new audience.” consumed when poured in a glass Martin commented in order to than from the can. Meanwhile, A new Web site, Herestobeer. beer’s traditional role as a beverage reach this new audience—females, Wired magazine reported: “The com, will be the centerpiece of an of choice for watching a sporting echo boomers and Generation flavor is well, whatever. Think of it industry-wide campaign to lift beer’s event, and highlight new aspects, sagging sales. The new pitch, which Yers-the winery had to reevaluate as Zima for The O.C.' generation,” such as what foods go best with it, is begins in February, will emphasize typical wine packaging and notes the Post. - NACS a way to fight eroding market share essentially “break all the rules.” to wine and spirits. - CNNmoney

The most important investment decision you may ever make won l be the choice of a stock, bond or mutual fund. It will be how you decide to allocate your assets. Most industry experts believe that up to 90% of long-term returns are directly attributable to this one decision. Asset allocation helps reduce volatility, minimize risk and optimize return. Lincoln Financial can help you and your advisors develop and maintain a personalized, long-term asset allocation plan—one that balances things just the way you want. Find out more. Call us today.

Michael J. LoGrasso CLU, ChFC and John M. Bussa Lincoln Financial Advisors 1000 Town Center, 26th Floor, Southfield, MI 48075

800- 382-8122

A balancing act for Advisory services offered through Lincoln Financial Advisors Corp., a registered investment advisor. Insurance □ Lincoln offered through Lincoln affiliates and other fine companies Securities offered through Lincoln Financial Corp.. a Financial Advisors broker/dealer (member SIPC). Lincoln Financial Group i' the markcung name for Lincoln National Corp. and its the serious investor. affiliates. © 2003 Lincoln Financial Advisors CR N0100712

6 | AFD Food & BeverageREPORT Smooth from the first taste and refreshing

every single time. Reach for the great taste

that you'll find only in America's favorite beer.

GREAT TASTE GREAT TIMES.

i h i sroNumn i r r

M arch 2006 | 7 RetailerPROFILE Things are looking up in Clio

By Michele MacWilliams developing their own anchor store to Fill it. They chose IGA as their Residents in Clio are smiling supplier and then began creating a again, now that they have a new new store from the ground up. With supermarket as the anchor of a a 30,000 square foot blank slate, renovated shopping plaza. For a they set about creating a full-service while last year, it looked as though supermarket - complete with a deli, grocery shopping options were bakery and pharmacy that would be dwindling down to just about a one-stop shopping experience for nothing in this rural town just north Clio residents. of Flint. The Clio Supermarket had Clio IGA opened on October closed and their brand new Farmer 15, 2005, just ten days before the Jack was soon to shut its doors. relatively new Clio Only a and VGs remained. closed its doors for good. Clio Enter the Simaan brothers. The residents couldn’t be happier. Simaan family had owned and "People call us just to welcome operated grocery and convenience us to Clio,” says Joe Simaan, store stores in the Detroit area since 1963 manager. “They’re really happy and they were looking for new that we are here.” The Simaans are options. A few years ago Farmer happy to be in Clio too. Jack vacated a space on Vienna "Our customers are so nice,” Joe Road in the Clio Plaza in order to continues. “They are patient and open a new, 48,000 square-foot appreciate our efforts. It’s a great store 2 1/2 miles west. feeling.” Farmer Jack continued to pay One reason the Clio residents rent for over two years to avoid are so welcoming is that the store competition. Through negotiations, is tmly a showcase of quality the Clio Plaza landlord was able products. The Simaans only to take back the demised premises purchase Angus beef and their meat and make it available for lease. sales show that this is something The Simaan brothers negotiated their customers appreciate. The a lease to open a state-of-the-art store is spotlessly clean and its supermarket, while the landlord shelves are stocked to the brim with mad'' commitment to update the just about everything one would 30-y«. -old plaza. They saw Clio want or need in the way of grocery as a wing market area. With and related food items. new housing developments cropping The ceiling is high, with exposed up all around the plaza, they felt beams and ductwork painted white. that Clio was under-serviced by Large dropped lights illuminate supermarkets. the aisles, creating warmth. Hand- They gutted the former Farmer painted murals adorn the walls Jack space and began the process of around the perimeter of the store, making it easy for customers to Joe commute to Clio daily, Tom locate the deli, meat department, from West Bloomfield and Joe produce and bakery. from Farmington Hills. They are The end result is a comfortable, happy to do it, saying that the accommodating store that suits the people there are so friendly and area’s residents and provides needed the community’s service officials goods and services. The only thing (police, fire department, etc.) are so missing from their original vision is easy to work with that it makes their the in-store pharmacy. jobs enjoyable and their days fly by The store is run mainly by Joe quickly. and Tom Simaan. In total, there are So what is next for Clio IGA? 13 Simaan brothers and sisters that The Simaans are looking to add immigrated to the U.S. beginning in that in-store pharmacy. Once that 1943. The family began working project is complete, Clio IGA in the grocery industry in Detroit will indeed be a full-service, one- and at one time had seven stores stop shopping experience for Clio within the city. Today, Tom and residents.

8 | AFD Food & BeverageREPORT A PROVEN TRACK RECORD

Nash Finch is proud to offer a lineup of store brand labels to meet any retail challenge.

O u r Our Family and IGA brands offer your consumers the highest of quality at significant savings when compared to national brands. These labels have consistently performed well in cutting tests, often being preferred over the national brand equivalent.

The Value Choice label is th e p e rfe c t tool to establish price image with your customers. Positioned to complement the IGA and Our Family label, Value Choice is th e d estination for the shopper who demands the ultimate in p rice value.

Call us today and find out more about this winning combination.

M arch 2006 | 9 Knowing the customer: beyond demographics

American Demographics reports families or other household types affluence” is expanding, with more that US citizens are the world's would have spent $109.50 less a people willing to spend lots of greatest spendthrifts, as a group week than they in fact did in 2005. money for stuff they want and/or spending more each week "than the That seemingly small sum, when need, and 3) baby boomers are annual gross domestic product of added up, would have subtracted aging, which means they will tend Finland.” more than $640 billion from to have more discretionary income During 2005, in fact, the average consumer spending, and the U.S. to spend and, in all likelihood, American household spent $1500 economy would now be in a deep longer lives during which to spend each week - adding up to a funk." it. AFD Foundation, whopping $78,000 in expenditures The magazine suggests that The other healthy sign is the fact for the year. Of course, not all of there are three trends that can be that the US population continues that spending was in cash, which worrisome when considering future to grow, which means that in cooperation also accounts for people's expanding growth of the economy: 1) lower anything can happen. American credit card debt. income households are growing Demographics predicts that on with Pepsi Bottling "Some fraction of that consumer at a faster rate than their more September 15 of this year, the US spending is, of course, the result of affluent brethren, 2) while there is population will hit 300 million. our basic need for food, clothing, rising affluence, there also is rising While “stagnant wages, rising Group, announces shelter and transportation,” poverty in the US, which means that poverty, lack of health insurance and American Demographics writes. the middle class is shrinking and the growing army of undereducated Academic "But really, how many households the health of the economy becomes men are serious problems,” the need two homes, three vehicles and almost completely dependent on magazine writes that “increasingly four TVs? It's clear that a great deal the upper middle class and upper wealthy and influential women Scholarships of, if not most, consumer spending class, and 3) not enough men go to combined with more affluent and The AFD Foundation will once is driven by desire, not need.” college, and the fact is that people aging baby boomers will look at again award academic scholarships Of course, this level of spending without college educations make the problems described above and worth $1,500 each to at least 23 has helped to keep the US economy less (and therefore have less to craft solutions in new and creative extraordinary students. relatively healthy, the magazine spend) than college graduates. ways.” The best news of all, it Eligibility: notes. "Real - after inflation - However, there also are three says, is that the US economy is A high school senior, college consumer spending in the U.S. rose positive signs: 1) women have increasingly knowledge-based... freshman, sophomore or junior 23% in the past 10 years, while increasing economic power, which and knowledge can help a society who is: the number of households was up tends to be good for consumer analyze and overcome its problems. • a student employed by an AFD only 14%. If spending had risen at spending, 2) so-called "mass -MorningNewsBeat.com member company for at least six the same rate as households, those months as of January 1, 2006. • and/or an applicant whose parent is a full or part-time employee of an Miller launches bottle fridge pack AFD member company, for at least one year as of January 1, 2006. Miller Brewing Company is Miller senior vice president of with a full array of point of sale • AFD member customers and their launching a packaging innovation sales and distribution. “And materials, consumer and trade children. that the company feels will because of that, we expect this new advertising and in-store promotional Special Rules; provide America’s beer retailers package to have a similar impact executions. In the beer category, • Only one scholarship will be with significant incremental sales on our retailers' bottom line as 12-pack bottles are the number-one awarded per AFD member company. volume. The first-of-its-kind our can Fridge Pack —significant selling package in supermarkets and • At least 10 Merit as well as bottle Fridge Pack configuration incremental sales.” the number two selling multi-pack 10 Minority Scholarships will will be available in the Miller Lite Miller will support the launch package in convenience stores. be awarded and at least three and Miller Genuine Draft brands scholarships will be awarded to AFD nationwide beginning member customers. • Applicants are eligible to win March 1. and receive a scholarship grant a The new bottle 12- maximum of two times. pack offers consumers • To be considered for an academic easy storage of bottles scholarship, an application must be in the refrigerator; a completed and returned by March 31. clean tearing top for Selection of Winners: easier access to beer; Scholarship winners will be chosen and a convenient yet in April by a panel of educators. sturdy carrying handle. Winners will be notified in early "Four out of five May. Winners must enroll as full­ consumers say they time or part-time students for the fall prefer our new bottle college semester. Fridge Pack design to Applications are available online at conventional 12-packs,” www.afdom.org. said Doug Brodman,

1 0 | AFD Food & B e v era g e R E P O R T GREYCkOSE The Worid’s Best Tasting Vodka

Grey Goose V odka 50ml = 8487-3 375ml = 9191-6 750ml = 9193-0 1000ml = 9314-0 / 1 750ml = 148-6

Grey Goose L'Orange 50ml = 8523-3 375ml = 8682-0 & > 750ml = 9625-0 1000ml = 9652-0 1 750ml = 148-2

Grey Goose LaVanille 50ml = 122-1 375ml = 122-2 750ml - 1 1 5-9 1000ml = 122-3 CREY GOOsE 1750ml = 148-5 "'V o d k a Grey Goose Le Citron • u.t* \\t»ii -in* 1 50ml = 16-9 PR VNCK 375ml = 1 6-7 750ml = 1 6-6 M I'UK I •■•I’ 1000ml = 1 6-8 1 750ml = 148-4

Proudly sold by: TRANS-CON SALES & MARKETING 1- 888- 440-0200

M arch 2006 | 11 NewsNOTES

Sara Lee continues whole grain Coca-Cola picks chief for 7-Eleven embraces contactless Manufacturers plan new push for roll out businesses abroad credit cards functional foods Sara Lee said it will release a new line of Coca-Cola has created a new position to 7-Eleven Inc. plans to accept contactless The Times reported that "with whole grain breakfast breads that taste more oversee all of the company's operations credit cards called "blink" at all of its health problems like diabetes, high blood like traditional white breads. These breads outside of North America, choosing Muhtar stores, with a card rollout in Texas and pressure, arthritis and digestive disorders Kent to fill the post. Kent earned company will use a special grain from ConAgra Foods, Florida underway. The convenience all on the rise, a growing number of food acclaim for jump-starting Eastern Europe and follows on Sara Lee s recent release store is adopting the technology to make marketers are selling what the food industry sales in the 1990s and is now seen as a of breads that mixed whole grain with white transactions faster and easier for its calls functional foods, which promise a host contender to become Coke’s CEO. bread -Chicago Sun-Times customers, a 7-Eleven representative says. -The New York Times of health benefits, from cholesterol reduction - Convenience Store News to immunity improvements to easing of intestinal problems"

As an example. Dannon plans to spend $60 For more information regarding our million in 2006 developing and marketing a machine, or to compare to our new yogurt designed to speed up "intestinal competitors, visit our web site at transit time." Elations, a new flavored www.kansmacker.com beverage that contains glucosamine promises “joint flexibility," and PepsiCo is coming out with a new version of Tropicana orange juice containing three grams of fiber per serving.

All of these companies are positioning their products to avoid careful scrutiny by the US Food and Drug Administration (FDA), BRAND REVERSE VENDING MACHINES according to the NYT "In making such assertions, companies are dodging Food and Drug Administration regulations that Kansmacker's require a rigorous approval process for health claims. Marketers are not required COMPACT STAINLESS to get agency approval for claims that talk STEEL MACHINE: about the body’s 'normal, healthy structures and functions,’ only for references to specific NUMBER ONE FOR: diseases or health conditions." • Cleanliness Starbucks goes Hollywood • Durability Starbucks Corp. is getting in the movie • Efficiency business with a mapr promotional deal with the Lions Gate Entertainment feature • Service film "Akeelah and the Bee, ” which opens in April and is about an 11-year-old • Speed African-American girt from a low-income Our new machines are neighborhood who competes in the National Spelling Bee. Starbucks will retail movie •SIMPLE! • EASY TO CLEAN! DVDs and soundtrack CDs, promote the film on coffee-cup sleeves and offer special Ask about a screenings for Starbucks baristas. ► FIREE TRIAL-— A -The Wall Street Journal NO OBLIGATION! ^ 3 FMI, restaurant association join forces for Food Safety Conference The Food Markebng Institute announced For more information regarding KANSMACKER BRAND REVERSE it will work with the National Restaurant VENDING AAACHINES, please contact NICK YONO at Association/National Restaurant Association < Educational Foundation to promote a new food safety education and food policy 800-379-8666 or 248-249-6666 event in Washington, D C. The Food Safety Conference, scheduled for Oct. ^1 Kansmacker now has HIGH VOLUME MACHINES to more than 11-13, will focus on penshable foods and aim to connect manufacturers, suppliers, DOUBLE THE CAPACITY of our Competitors’ High-Volume Machines! distributors, service providers, regulators Check out our new State-of-the-Art PLASTIC CRUSHERS— and food industry organizations with their with a capacity of over 2,000 plastic bottles! distribution and retail partners. -Progressive Grocer

1 2 | AFD Food & B e v era g e R E P O R T u bad la t some lead to brandsOur ilf iL Here’s to beautiful relationships. beautiful to Here’s Celebrating life. day. Everywhere. Every Celebrating DIAGEO beautiful relationships.beautiful Responsibly.

©2006 Diageo North America. Inc., Norwalk, CT Diageo-Guinness USA, Norwalk. CT Norwalk. USA, Diageo-Guinness CT Norwalk, Inc., America. North Diageo ©2006 want you to enjoy the benefits of our our of benefits the enjoy to you want We Diageo. to importance utmost of are customers retail and wholesale brands as much as consumers do. consumers as much as brands brands. And relationships with our our with relationships And brands. our of one enjoying are people while built often are Relationships M arch arch M 2006

13 | NewsNOTES Study: Cinnamon lowers sugar Supervalu launches discount White tea, exotic fruits big in ‘06, levels in diabetics natural foods chain group predicts Grocers large and small make A three-year study in Malaysia has shown Supervalu Inc. took the wraps off its new White tea, tropical fruits, chocolate and Fortune’s best workplaces list cinnamon can relieve Type II diabetes by banner recently in 'small plate* dining are all poised to enjoy Indianapolis. The discount chain specializes Food Markets is the best large lowering sugar levels. Other studies have a big year in 2006 according to predictions in natural and organic food and stocks U S company to work for, according to demonstrated cinnamon extract mimics from the Center for Culinary Development. between 8,000 and 12,000 items. CEO Jeff insulin action in cells, and the spice is widely Restaurants and retailers also are expected Fortune's annual 100 Best Companies Noddle told analysts that the company would used to treat other ailments, such as diarrhea to begin giving more details about where to Work For list. The retailer, with neady continue to look for acquisition opportunities and arthntis, because of its ability to improve their foods come from, experts say. 32,000 employees, was ranked No. 2 among in the wake of a failed bid for part of companies of all sizes. , circulation, heal wounds and prevent ulcers Albertson's Inc. -Chicago Sun-Times , Super Markets and and allergies. ■Star Tribune (-St. Paul) Stew Leonard s also made the list. -YahooVAgence France-Presse ■Progressive Grocer Trade publication names Absolut rebrand General Mills ad spending mass market retailer of 2005 A pioneer in marketing premium spirits, to increase Mass Market Retailers has named Costco Looking for a Home in Absolut vodka is veering away from its Wholesale Corp. its Mass Market Retailer of Convenience Business General Mills will battle rival cereal maker 25-year-old campaign built around images the Year. MMR says Costco has achieved Kellogg Co. by boosting its marketing budget shaped like its distinctive bottle and moving ATLANTA - The Home Depot, the world's its dominant position through sales that in the second half of its fiscal year, according from print to TV The new campaign by largest home improvement retailer, will to General Mills CEO Steve Sanger The TBWA/Chiat/Day is designed to win over reached $51.9 billion. make a new home in the convenience company is well-positioned for growth as drinkers in their late 20s who have come of store industry with four convenience store it rolls out new cereals and leverages its age in which brands like Grey Goose and openings in the first half of 2006, with the health-focused brands such as Yoplait Belvedere are considered the elite labels in Orawave partners with nonprofit possibility of 300 by 2010. The new initiative and 8th Continent, Sanger told an investor the vodka category. group and sees gains was announced at the company's annual conference -Reuters Toothbrush maker Orawave LLC struck meeting with investors. gold when it partnered with the Susan Fish is brain food ‘Over the next five years, The Home Depot Atkins emerges from bankruptcy G. Komen Breast Cancer Foundation to expects to maintain and grow its leadership Several new studies prove the old adage market specially packaged Pink Ribbon Atkins Nutritionals emerged from Chapter 11, that fish is good for the brain. One doctor position in home improvement retail toothbrushes and oral care products. significantly reducing its product offering and recommends eating fish twice a week but worldwide,' chairman, president and CEO Orawave, which contributes a portion of rebranding itself as a nutritional company avoiding types including shark and swordfish, Bob Nardelli proclaimed at the meeting. sales back to the charity, expects to double instead of a diet company. which can contain higher amounts of - Convenience Store News its revenue this year. -The Detroit News -Food Business Review mercury. -The New York Times

ONLY LICENSED MICHIGAN COMPANY Leading Edge j Technology, I r M IC H IG A N Experience I Consistently voted »r tor Customer rE X P R E $ $ ~ Service in the industry1 & Service! I

Congratulations onyour A nnual Trade Dinner MONEY ORDERS 1- 248 - 304-1900 Building Quality in a Growing Market Discover ^&o/MP/OMONEY-^ Security Express DINERORAPIDO” Money Orders MONEY TRANSFER SYSTEM EXPRESS OFFERS YOU: •Profits from Increased Transfer money throughout the world with a hqh margin ol profit to you and very low cost to your customers « Store Traffic ■flapK^oney” * customers will receive information via our •Low Cost advertising promotions and public relations program 'Money Orders in Seconds in your market •Your business and locations will be included m •Speed Reporting and our advertising No Bookkeeping Rap/dMoney* will promote customer traffic to your store ■Expert Sales Consultation

ADDITIONAL SERVICES: Start the New Year Right' ^ BahXcard Discover the Difference' W HAT THE BIGGER PROFITS • BETTER SERVICE LEADER $ $ S $ $ S Direct Authorized Agent IN MERCHANT •Utility payments system PROCESSING -PRE PAID CREDIT CARD OFFERS Metro Detroit • Flint «Money Transfer ^ YOU « -ATM CARDS & 23661 Telegraph Road ( r ‘Credit Card Processing £ s % -CASH GIFT CARDS •Innovative Southfield, MI 48034 Technology CO ____ 248-945-4900 m m s •Exceptional Value MAGAZINES •Superior Fax 248-945-4922 Customer Service NEWS Security Expre$$ Money Orders Wholesale Distributor 4 2 4 8 3 0 4 1 8 0 0 Better Business© Bureau - - -

14 I AFD Food & B e verag eR E P O R T Take our Family of Products Home The Dairy Best!

I

M arch 2006 | 15 MemberPROFILE Sturken Straightens Course Craig Sturken has implemented a strategy that has Spartan Stores in better fiscal health.

By Kevin Murphy took over for then-CEO Jim Meyer, Although he’s not ready to Grand Rapids Business Journal the share price had fallen from a quit there, Sturken is happy high of more than $16 in 2001 to to think of his success at There is a scene in the 2000 film under $2 in mid-2003. Spartan as the high note “The Perfect Storm” that shows Sturken said the expansion that to end a long career in the the fishing vessel Andrea Gail had seemed so promising early in grocery business. struggling its way along a trough the decade had quickly soured. As a 16-year-old in between two enormous sea swells. “When I got here, it was cancer Yalesville, Conn., he didn’t As a sheer wall of churning water and it had to go,” Sturken told think of his job at the local draws up before the craft, it's not the Business Journal. “So we as the start of clear whether the boat will turn into immediately divested ourselves of a lifelong career. He just the swell, floating unscathed to its that and other non-core business thought of it as a chance to crest, or be swept under, swallowed that was a distraction. And then we earn some money to buy a by the angry seas. got focused on our core business, car — and as a good excuse That's kind of the position that which is distribution, and the to avoid milking cows on Spartan Stores Inc. was in when retail business that we own here the family farm. From there, Craig Sturken climbed aboard as in Michigan. And it’s really turned Sturken’s “growing up in the the company's new skipper in 2003. around. Our distribution is just industry” took him up and In the years before his arrival, the fantastic. Our retailers are doing down the Eastern Seaboard grocery wholesaler and retailer just great.” for more than 30 years. After had expanded its retail presence By the beginning of 2005, stints in New Jersey, Maine, dramatically with a number of Spartan's retail holdings had Georgia and Canada, Sturken acquisitions, including Seaway been pared down to 75 stores. rose to become CEO of the Food Town, an Ohio grocery and The company had consolidated Atlantic region for Great drug retailer. In 2000, Spartan and strengthened its distribution Atlantic & Pacific Tea Co. owned 47 retail stores. A year later, business. In addition to those In that capacity, he worked to it had 127. logistical moves, Sturken turn around a slumping region where Sturken decided to focus his That rapid expansion came at a implemented philosophical and to put a new strategic plan in energy: planning. price. The company went from a changes in the way the company place for the company. It was good “I’m the coach. I don’t play the $27 million profit in fiscal 2001 to did business. Those changes went practice for his next job. plays. Most of the time I don’t even a $122 million loss in fiscal 2003. straight to the bottom line. In fiscal Sturken looked at Spartan and call the plays. I just try to influence Looking at a historical price chart 2004, the company showed a $6.7 saw stormy weather, but he also what the players do,” said Sturken. for the Nasdaq-traded company, it’s million loss. In fiscal 2005 the saw a challenge: too many brands. clear to see that the company was company netted an $18.8 million Too many store banners. Too many taking on water. Before Sturken profit. stores, period. Too little respect. Spartan, Too little planning. And that is Continued on page 27.

16 | AFD Food & BeverageREPORT “You must be the change you wish to see in the world.”

LaSalle Bank salutes those who help make a difference.

Personal Banking • Commercial Banking • Wealth Management

Making more possible LaSalle Bank ABN AMRO

www.lasallebank.com i ~~ i Wealth Management is a division of LaSalle Bank, NA K m m ©2005 LaSalle Bank N.A. Member FDIC. Equal Opportunity Lender.

M arch 2006 | 17 GovernmentPROFILE Liquor Control Commissioner Virgie Rollins brings community, business and government together by Kathy Blake Director of Public Affairs for training and directing Wayne County. She worked for democratic candidates. the Wayne County Executive as Currently she is also serving Michigan Liquor Control a liaison between government, as the Chair to the National Commissioner Virgie M. Rollins community groups and clergy. Federation PAC and during has dedicated her career to bringing Rollins said she worked with the 43 President Clinton's tenure, people together by building communities of Wayne County. She she lead a delegation of relationships between community organized the first annual prayer the Democratic National groups, business and government. breakfast for the different groups Committee to Taiwan as The daughter of a minister, Rollins in 1986 and organized it every guests of Taiwan’s president. had learned how fellowship and year thereafter, while employed Rollins is a board member communication help solve problems in the office. The event was held for numerous organizations and build alliances for community at Cobo Hall and started with 500 including the Southeastern improvements and harmony. attendees the first year growing Michigan Council of She says, “I am a public servant to 2,500 attendees by 1993. “It Governments, the United first.” After that, she says, “I make brought such a fellowship, it Way, Metropolitan Affairs sure we have good government.” helped build relationships between and on the National board She was president of the National the communities, it helped with for Operation P.U.S.H. She Federation of Democratic Women diversity and it created workshops,” has received many awards of the Democratic National said Rollins. The workshops joined as well, including the Committee, and has helped support between Wayne county and Spirit of Detroit award, the numerous candidates with their the city governments within the National Capital Medallion election campaigns. county. award, the National Rollins was appointed by Gov. Rollins formed her own Leadership Council Award and she and Lake Michigan College. Granholm to her new role as consulting firm, Rollins Group in was honored by the Department of For more information about the Liquor Control Commissioner in 1993. She has consulted for such the Army during Women’s History LCC, which is a division of the September of 2005, to replace Ena distinguished clients as the late Month. Commissioner Rollins Department of Labor and Economic Weathers, whose term expired. Department of Commerce Secretary attended the University of Michigan Growth, please call 517-322-1345. “Since we are in a control state, Ron Brown where she implemented it’s probably good to have a programs and workshops for small commission. It enhances relations businesses. She has helped small How to Contact the MLCC : between government and business. businesses by bringing in large The LCC is both administrative corporations to join with them. Michigan Liquor Control Commission and regulatory. It helps educate “Small businesses provide jobs for 7150 Flams Drive businesses and strengthens the the community and take care of PO. Box 30005 Lansing, Ml 48909 small businesses,” explained and work with the community they Toll Free 1-866-813-0011 Rollins. Her position with the LCC serve,” explained Rollins. is as a hearings commissioner; She also secured funding for the Nida Samona, Chairperson (517) 322-1353 late Fr. William Cunningham’s she formally listens to violators FAX (517) 322-5188 of Michigan’s liquor laws at the Focus HOPE program and helped Farmington Hills office. She says, secure funding and training from Judith Allen, Administrative Commissioner (248) 888-8840 “We educate through the rules and the U.S. Department of Labor and Virgie Rollins, Flearing Commissioner FAX (248) 888-8844 work with businesses.” Transportation for Wayne County at Her first governmental post was large. James Storey, Flearing Commissioner (517) 322-1355 as political consultant, advisor and Rollins finished a four-year Patrick Gagliardi, Administrative Commissioner FAX (517) 322-5188 strategist to the late Detroit Mayor term as president for the National Coleman A. Young, from 1973 Federation of Democratic Women Julie Wendt, Director of Licensing (517) 322-1408 to 1984. She wrote his speeches of the Democratic National FAX (517) 322-6137 and helped him with the selection Committee last summer. She has process for his government the distinction of having raised Randy Epps , Regulation Manager (517) 322-1420 appointments. Her next job was more funds in the history of the FAX (517) 322-5046 assistant director for the Michigan federation. She has traveled to Nancy King, Director of Financial Management (517) 322-1382 Department of Licensing and 32 states organizing women, FAX (517) 322-1016 Regulation and director of the fundraising for various democratic Rick Perkins, Director of Enforcement (517) 322-1370 Detroit office. candidates, conducting workshops FAX (517) 322-1040 Then in 1986, she became the for young women in leadership

1 8 | AFD Food & B everag eR E P O R T M arch 2006 | 19 A&P cuts losses in Q3 ‘05, “Not interested” in selling Ml stores

The Great Atlantic & Pacific Tea Brenda Galgano said that the grocer a “revolving” initiative currently gourmet concept at selected Co., Inc. is still in the red, but it was shifting its investment strategy featuring 3,500 items, but which will Manhattan stores, to be rolled out this was able to slow down the bleeding to individual stores with the highest probably be limited to 5,000. He also year. i omewhat in its fiscal 2005 third returns, rather than by cluster. mentioned that the company’s major Claus further said that the new quarter ended Dec. 3, 2005. In talking about cost-reduction campaign to reduce the cost of goods discount concept would include For the third quarter, A&P's U.S. strategies that have already been had resulted so far in a $19 million a private label line that would be sales were $1.58 billion, vs. $1.67 adopted by the company, Claus reduction in that area. introduced in about three months’ billion in the year-ago period, the noted that A&P had consolidated Among other topics raised during time, and estimated that although the company said. Fiscal 2004 third or eliminated most of its banner the call were a profit-sharing strategy number of stores in the quarter total sales of $2.52 billion had United States would grow from its included $850 million related to A&P current count of 11, it would still be Canada, which was sold last August. A&P officials said that they were confident fewer than 20 next year. Added Claus: “Going forward, we that the company’s Michigan stores would In response to analyst questions, plan to continue to improve operating the A&P officials said that they results by further reducing costs, break even by next year were confident that the company’s while marketing aggressively and Michigan stores would break even investing to bring our store facilities administration, adding that its banners for unionized staff that A&P hopes to by next year, and that distribution to new quality standards both on the were now operating formats. The introduce “when profitability kicks of stores in that state would also be fresh and discount sides.” consolidation also included the in,” and store concepts the company transitioned to Keene, N.H.-based In a conference call, executive closure of the Paterson, N.J. office is working on, including a “lean and C&S Wholesale Grocer, a process chairman Christian Haub said and cutting the “lion’s share’ of mean” fresh store, incorporating that had gone well at the retailer’s the company was interested in expensive third-party relationships the best of American and Canadian other stores. The officials also said consolidation opportunities in the with consultants, couriers, and others. locations, that now has a prototype they were currently “not focused on United States on a par with the recent Claus said that all such administrative in New Jersey and by fiscal year-end selling” the Michigan stores. consolidation of A&P Canada and consolidation should be completed by should encompass 70 units, up to A&P operates 407 stores in nine Montreal-based grocer Metro, “should the end of the present fiscal year. five of them new builds; an evolving states and the District of Columbia [such opportunities] materialize,” and Among the grocer’s “innovative discount format that will be unveiled under the trade names A&P, added that A&P’s “revitalization” was but simple” programs, Claus cited next month in two prototypes at Waldbaum's, The Food Emporium, “off to the best possible start." its “very vendor-funded” Temporary locations that are currently dark; and a Super Foodmart, Super Fresh, Farmer Also during the call, new C.F.O. Price Reduction (TPR) Program, new, “very high-end” Food Emporium Jack, Sav-A-Center, and Food Basics. Attention Food and Beverage Industry: • Wholesalers • Brokers • Manufacturers • Distributors Food & Beverage Report MEDIA INFO & DATA • Liquor, Beer & Wine Distributors and Principals Working Hard for Michigan's • Food Processors • Banks • Phone Companies Food & Beverage Industry Reach a group of 25,000* of your best prospects each month by advertising in AFD's Food & Beverage Repor t

*2 .5 Pa ss .1lung Iteadership. lO.lRW circulation iru Iuties every Hupermarket. drug ttlore, nun < nienre ml ore and npecially fttotl m arket . . . i irtuu lly the entire retail ftxtd industiy in M irhig Monthly Theme/ Promotion Schedule January Store Design, Equipment \ If you'e reading this message, we can help you increase your company's February Trade Dinner C a n t o r market share in Michigan. Our rates are competitive and layout and design March Service Organizations personnel are available to give you your own special flair to your ad. April AFD Buying Trade Show May Beer & Snacks Join the successful companies that advertise in The Food and Beverage June Deli & Dairy Report. Call for more information, rates, or to schedule an ad. July Scholarship Golf Outing Our readers look forward to learning more about your company, August Meet Our Scholars "Independents’ Day" your product and your services. September AFD Holiday Beverage Show October "Made In Michigan" November Holiday Features December Industry Trends

Associated Food Dealers off Michigan 30415 West 13 Mile Road Farmington Hills, Michigan 48334 Call Ray Amyot at 989-386-9666 1^ or 248-671-9600 • Fax 248-671-9610

2 0 | AFD Food & BeverageREPORT Now Fantasy 5 is a real trip! While your players dream about a one-week trip tor two to Atlantis, Paradise Island, Bahamas, you’ll kick back and watch your Fantasy 5 sales climb. With every $3 or more Fantasy 5 tick­ et purchased, players will receive an entry coupon tor their chance to win one ol 30 trips that include: • Airfare and lull meal plan $500 in spending cash antis, Paradise Island amenities: 11 swimming areas, a snorkeling lagoon and miles of beaches Casino with over 850 slot machines and 78 gaming tables • Duty-tree shopping So encourage them to buy up for their chance at paradise! LOTTERY

M arch 2006 | 21 The Associated Food Dealers of Michigan welcomes these new members who have joined in July through December 2005: A-1 Global Catering Chesaning Heritage House Dick's Food Mart JP's Pizza AHD / Vintners LTD Clio IGA Eby-Brown Kerns Grocery B & B Distributing, Co Colonville Country Store Farmington Hills Wine & Liquor Kris Mart Barons Market Copemish Family Market Glory Supermarket, Clinton Twp. Krzysiak Meat Market Big Lake Market Country Peddler Store Glory Supermarket #1, Detroit Liberty Foods BurTitts Fresh Markets DBC America Glory Supermarket #2, Detroit Louie s Super Valu Foods Cass Avenue Party Stone Detroit Popcorn Havana Republic Mapleton Grocery Co Central Food Center Inc. Diamond Dot Howell Village Market Mario's Food Market Northern Falls Northland Food & Family Center O’Briens Supermarket Pinewood Liquor Pooles Meat Processing Powers Distributing R V C Inc Rainbow Tuxedo Our outstanding Ram's Horn Restaurant #36 Roma Foods Inc. service has made Shop a Lot South Side Market Star Party Store North Pointe #7 Tel-Twelve Sunoco The Backyard Barbecue The Drug Store Tnad Investment Co. North I Pointe Village Market Washtenaw Liquor Store Insurance Co. Wolf Lake Store Competitive Rates Admitted, Approved and Domiciled in Michigan Mexican Coke Endorsed by a preferred AFD for 18 Michigan's Leader consecutive years product in Liquor Liability The Wall Street Journal reports that Coca-Cola imported from Never assessable, Mexico “is a big business, fueled for 18 years! by the Hispanic population, the no deductibles, fastest growing minority group in policy fees or the U.S., and soda connoisseurs Give us a call: drawn to its taste and the old-time surplus lines tax look of the iconic bottle. Fans insist the Mexican cola, made with cane (800) 229-NPIC sugar, has a better ‘mouth feel* Available through than the U.S. formula. U.S. bottlers Fax: (248) 357-3895 switched from cane sugar to high- the Independent fructose com syrup in the 1980s to Agent Network or visit us at cut costs.’* The problem is that Coke’s with over 1,000 www.npic.com management calls the imports agencies to serve “the work of bootleggers,” and is annoyed by the underground you or call AFD at: importation of the Mexican product While it investigates cases of U.S. stores selling Mexican Coke, the (248) 671-9600 company also “quietly started a limited test program to allow or (800) 666-6AFD the authorized distribution of a small amount of Mexican Coke through one of its U.S. bottlers.’ - MorningNewsBeat.com

2 2 | AFD Food & B e v era g e R E P O R T The Power of Your Community is right behind you.

Every time you turn on a light, thousands of your friends and neighbors are right

there making sure it works. That's thousands of Michigan-based Detroit Edison

and DTE Energy workers providing you with the level of service and dependability

you've come to expect for over a century. And we're also right behind you when

it comes to community support; donating more than six million dollars a year to community causes. Energy* Detroit Edison

M arch 2006 | 2 3 LOWPOWN New year starts with Subway promotion

to a free, $1 Classic Lotto 47 good fortune with others. 7’s, our latest $10 instant ticket, easy pick wager. The coupon can Sue Kuck, president of the went on sale. It has over 2,000 be redeemed for a single panel, company, citing a strong prizes of $77 and a top prize of single draw ticket good for the commitment to the community in $777,777. Lucky Hearts, a $2 ticket next scheduled Classic Lotto 47 which they’ve been located for 80 with a top prize of $14,000, is on drawing. years, said $5,000 of the $50,000 sale January 16. Players can win As a complement to the Subway was given to the Salvation Army one of over 100 trips to Caesar’s offer, the Lottery will also offer of Saginaw County. Some of the Palace in Las Vegas with the $5 discounts at Subway. All Classic remaining $45,000 was divided Caesar’s Palace ticket that goes on Lotto 47 tickets generated between among the 200-plus employees sale Jan. 23. Also on the 23rd, look January 2 and February 13 will of the company and the balance for Instant Daily 3, a $1 ticket with contain one of three different was deposited into a company prizes up to $3,000. The month discount offers on Subway menu retirement fund. winds up with Whole Lotta items. Wow, talk about a win for $100s, on sale for $2 beginning By Commissioner Gary Peters Be sure to promote this promotion everyone. Congratulations to Galen January 30. and bring in new customers. Wilson Petroleum on this great gesture to its loyal community and **All proceeds from the Lottery The Michigan Lottery is starting Sharing the Wealth: employees. are contributed to the state the new year off with a great Last month I was pleased to School Aid Fund which supports promotion that we expect will bring report that the Lottery had awarded New Instant Games: kindergarten through 12th grade additional customers to all of our its first $50,000 commission check Watch for a bundle of new public education in Michigan. In retailers. to the South Michigan Express instant tickets —seven in all—to fiscal year 2005, the contribution Subway restaurants will be giving Mart in Saginaw for the sale of a hit the shelves in January. Two, $2 was $667.6 million. For additional coupons to their customers to winning Mega Millions jackpot tickets, U Win Bingo and Red Hot information, please visit the redeem at Lottery retailers between ticket. I’m happy to share with you Doubler, went on sale January 3. Lottery’s Web site at www.michigan January 2 and February 15. Each that the business, owned by Galen Top prizes are $30,000 and $35,000 gov! lottery** coupon will entitle the customer Wilson Petroleum, has shared their respectively. On January 9, Casino

Delivers In More W ays Than One.

FINANCIAL ' LEGISLATION EDUCATION ACTIVITIES

• Blue Cross/Blue • Full Time Lobbyist • A/V Loan Library • Annual Trade Show Shield Health Care • AFD PAC Committee • T.I.P.S. Seminars • Formal Trade Dinner \ • SPC Financial Planning • Legislative Updates • Legal Consultation • Scholarship Golf Outing • Verizon Wireless 1 • Liaison with • Accouting Advice • Annual Seniors Picnic • Coupon Redemption Governmental Agencies • Monthly Food <5 • Thanksgiving Turkey Drive Program Beverage Report • Beverage Journal One / • Clear Rate Long Distance • Scholarship Awards Holiday Show • NPS/Chase Credit Card

• Northpointe Liquor For more information on any of these ource Liability Insurance excellent programs, call: • Security Express Money Orders Associated Food Dealers • A M Auto & Home of Michigan Insurance 30415 West 13 Mile Road • Star Workers Farmington Hills, Michigan 48334 Compensation Insurance 1 -800-66-66-AFD • Cox, Hodgman & Or 248-671-9600 Giarmarco Estate Planning

2 4 | AFD Food & BeverageBEPORT Classified IZZE redesigns can

FOREALE-Livonia Liquor Store Liquor. IZZE Beverage Company, Sparkling Pomegranate. Beer. Wine and Lottery Contact Mark (313)864-6775. recently redesigned its 8.4-ounce IZZE Sparkling Juice, an all­ can. making it more colorful and natural blend of pure fruit juice FOR SALE—Entire pizza store with a stand alone building with equipment. Located in Whitmore easy to read. and sparkling water, is free of Lake. Ml. Aprox 950 sq. ft. A turn key opportunity The newly redesigned can caffeine, artificial ingredients, with land contract availability low cost low rent. For more info please call Jeff (248) 682-6400 is now available in Sparkling high-fructose com syrup, and all Blackberry. Sparkling other refined sugars. FOR SALE-Chevy/Workhorse & Grumman/Olson StepVans, 12'-14' work area, dual rear tires, Clementine, Sparkling Pear and gas, ranging from 1995-2000 asking $4000.00- $7000.00. Call (800) 527-6887 ext. 177 for more info.

FOR SALE -Convenience Store. Beer & Wine, Lottery & Money Orders. Approx. 2,500sq. ft Good Location, full neighborhood. Gross $8,000/wk. Building & business $250,000 plus A healthy alternative to the inventory. Call Art at (313) 839-6262. FOR SALE—Liquor Store. Liquor, daily lottery high cost of health care. and cellular. Sales over $700,000 a year. Total cost $550,000 plus stock. Call Waleed at (248) 465-0355. Introducing Flexible Blue from Blue Cross Blue Shield of Michigan— a new, FOR SALE—Ice cream equipment. Total cost $50,000. Asking only for $15,000. Used for more affordable way to give your employees the health care they really want. three months only. Call Joe at (734) 213-4900 Our Flexible Blue plans are designed to work seamlessly with the new health savings accounts FOR SALE—Northville party store. Beer, wine and lottery - business only. 2400 sq. ft. 14-door (HSAs), which offer a number of attractive benefits: walk-in cooler. $109,900.00. Call Bnan Yaldoo, RE-MAX Classic at (248) 737-6800 or page him For Employers at (248) 806-9100. • The potential of significantly lower premiums FOR SALE—Convenience store located off busy • The ability to customize your benefit plan I-94 exit. Beer & wine, bait & tackle, ice cream • Ease of administration, with financial services from Wells Fargo parlor, bakery & deli and lottery. Celebrating 25th year in business. Owner ready to retire. Call (517) 764-5284, For Employees • More control over their health care FOR SALE—Detroit Warehouse. 22 ft. refrigerator • HSAs funded by tax-free* contributions, similar to a 401(k) truck for hire - daily/weekly. Call Dave Evola (586)360-7662. (certain maximums apply) • Unused funds roll over each year and can be invested for growth FOR SALE—Full service supermarket. 3200 sq. ft. Meat, produce, liquor. East side Detroit, facing Grosse Pointe. Call (313) 885-7140. Flexible Blue also includes online resources to help employees make informed decisions about their health care, prescription FOR SALE—Beer & wine license. City of Taylor. drugs and more. Best of all, Flexible Blue lets you offer your Hobart Slicer $975. Deli scale $100. Call (734) 946-4016 employees the security of Blue Cross coverage at a cost that could be significantly less than you currently pay FOR SALE—Small grocery/beer-wine store with lottery and ATM. Building 50x80 with Flexible Blue also works with health reimbursement iarge parking lot for additional development arrangements (HRAs), flexible spending accounts (FSAs), opportunities. Call John (313) 273-6015.

FOR SALE-Hobart Gnnder #4632, 2 H P. Single Phase. Completely rebuilt—$2,000.00. Yorkshire Food Market, (313)885-7140.

FOR SALE—Party store 50 miles north of Detroit Liquor, beer & wine, lotto, grocenes & DNR Licenses. Gross-over $400,000.00. Includes two rental houses plus building. $450,000.00 Plus inventory. Make offer. Ph. (810) 985-7663.

HMSALE-Party store 40 minutes north of Lansing. Beer, wine, liquor groceries, lotto, grossing approximately over $9,500.00 a week, includes building, equipment, 2 extra lots *'.:?■ plus inventory. Terms possible. Owner retinng. Phone (989) 875-6073.

foot deli self-server, front doors. *1.500 or best offer. Call 313-274-1426.

“ W H a itOOD FIRE SYSTEM S AND EXTINGUISHERS low discount pricing to all AFD members. 3jvT Stalls, remodels, inspections, recharging "** testing. Also servicing auto paint booths P 9as stations. All brands: Ansul. Pyrochem. rgUS®— Guard. Servicing southeastern Micbraan 2477. Call Alan Ross at GALLAGHER HRE EQUIPMENT-800-452-1540.

^ 8 RALE —Upscale Charlevoix business at i^rtjain price! Don's IGA is close to town, J !^ P ^ ty °f parking. Dramatically reduced Blue C ro u .°*M9,000 and includes real estate, two liquor nonprofit j * ' ses. equipment and fixtures. Call Lori Jodar licensee of the 31 Boyne Realty: 231-439-4097. Blue Shield Asi

M arch 2006 | 2 5 SUPPORTTHESE AFD SUPPLIER MEMBERS

AUTHORIZED LIQUOR AGENTS: CrossMark ...... (734) 207-7900 Detroit Free Press (313) 222-6400 Security Express...... (248) 304-1900 General Wine & Liquor . (313)867-0521 Hanson & Associates, Inc (248) 354-5339 Detroit N ew s...... (313) 222-2000 Shimoun, Yaldo & Associates P C .. (248) 851-7900 National Wine & Spirits 1-888-697-6424 J.B Novak & Associates (586) 752-6453 Michigan Chronicle...... (313) 963-5522 Simplicity Wireless...... (619)654-4040 1-888-642-4697 Metro D Sales (734)416-8969 Suburban News— Southfield: . (248) 945-4900 Southfield Funeral Home (248) 569-8080 Trans-Con Sales & Marketing 1-888-440-0200 S & D Marketing (248)661-8109 Trader Publishing . . (248)474-1800 Tri-County Pest Control (586) 296-7590 WDIV-TV4 (313) 222-0643 UHY Advisors, Inc...... (248) 355-1040 BAKERIES: CANDY & TOBACCO: Vix-Kersch Vending Co .. (248)548-1300 Ackroyd's Scotch Bakery Altria Corp Services, Inc (734) 591-5500 NON-FOOD DISTRIBUTORS: & Sausage (313) 532-1181 Fubidia, Inc (810) 742-8274 Items Galore (586) 774-4800 STORE SUPPLIES/EQUIPMENT: Archway Cookies (616) 962-6205 Nat Sherman (248) 202-7339 Alarm-Medic ... (248 ) 349-9144 Awrey Bakenes, I n c ...... (734)522-1100 R J Reynolds (248) 475-5600 POTATO CHIPS/NUTS/SNACKS: Belmont Paper & Bag Supply (313)491-6550 Interstate Brands/ American Way Foods (Vitner) (313) 945-0710 Brehm Broaster Sales. . . (989) 427-5858 Wonder Bread/Hostess (586) 792-7580 CATERING/HALLS: Better Made Snack Foods (313) 925-4774 Culinary Products (989) 754-2457 S & M Biscuit Dist (Stella D'Oro) (586) 757-4457 A-1 Global Catenng (248)514-1800 Detroit Popcorn Company (313) 835-3600 DCI Food Equipment...... (313) 369-1666 Taystee Bakenes...... (248) 476-0201 Farmington Hills Manor (248) 888-8000 Frito-Lay, Inc. 1-800-359-5914 Envipco...... (248)471-4770 Karen's Kafe at North Valley (248) 855-8777 Motown Snacks (Jays Cape Cod) (313) 931-3205 Hobart Corporation . (734 ) 697-3070 BANKS Penna's of Sterling (586) 978-3880 Kar Nut Products Company (248)588-1903 JAYD Tags (248) 624-8997 ATM of America (248) 932-5400 St. Mary's Cultural Center...... (313)421-9220 Mexico Wholesale (313)554-0310 Jim Leach, LLC...... (989) 791-3131 ATM of Michigan (248) 427-9830 Tina's C atering...... (586) 949-2280 Nikhlas Distributors (Cabana) (248) 582-8830 Martin Snyder Product Sales (313)272-4900 Bank of Michigan (248)865-1300 MSI/Bocar ...... (248) 399-2050 Cash Depot (920) 432-5777 DAIRY PRODUCTS: PROMOTION/ADVERTISING: Sara Lee Coffee & Tea (734)414-8433 Comerica Bank (313) 222-4908 Country Fresh Dames . . 1-800-748-0480 Art One Sign E x p o ...... (248)591-2781 Taylor Freezer ...... (734 ) 525-2535 Fifth Third B a n k ...... (248) 603-0550 Golden Valley Dairy (248)399-3120 DBC America (313) 363-1875 TOMRA Michigan . 1-800-610-4866 Peoples State Bank...... (248) 548-2900 Melody Farms Dairy Company (734) 525-4000 Enterprise Marketing...... (616) 531-2221 Standard Federal Bank 1-800-225-5662 Mexico Wholesale (313) 554-0310 PJM Graphics ...... (313) 535-6400 WHOLESALERS/FOOD DISTRIBUTORS: Pointe Dairy...... (248) 589-7700 Brownwood Acres...... (231)599-3101 BEVERAGES: Prairie Farms/ RESTAURANTS: Capital Distributors...... 1-800-447-8180 Absopure Water Co. . . 1-800-334-1064 Tom Davis & Sons Dairy C o ,. (248) 399-6300 Copper Canyon Brewery...... (248)223-1700 Carp River Trading Co___ 1-800-526-9876 Allied Domecq Spirits USA (248)948-8913 Superior Dairy Inc...... (248)656-1523 Pizza Papalis Corp...... (248) 540-2426 Chef Foods...... (248) 789-5319 Ambassador Service Group (248) 879-7704 Rio Wraps ...... (248) 540-2426 Consumer Egg Packing Co (313)871-5095 American Bottling (313) 937-3500 ELECTRONIC AGE VERIFICATION CS & T Wholesalers . . . . (248) 582-0865 Anheuser-Busch Co...... 1-800-414-2283 D J King & Associates 1-800-781-5316 SERVICES: D&B Grocers Wholesale (734) 513-1715 B & B Beer Distnbuting Co.. (616)458-1177 AAA Michigan 1-800-AAA-MICH Dearborn Sausage (313)842-2375 Bacardi Imports, I n c ...... (248) 476-6400 EGGS & POULTRY: Advance Me Inc...... (513)518-3150 EBY-Brown, Co...... 1 -800-532-9276 Brown-Forman Beverage Co (734) 433-9989 Consumer Egg Packing Co (313) 871-5095 Al Bourdeau Insurance Services, Inc...... Economy Wholesale ... (313)922-0001 Brownwood A cres...... (231) 599-3101 Linwood Egg Company (248) 524-9550 1-800-455-0323 Epstein Distributing Co. .. (248) 646-3508 Central Distnbutors (734) 946-6250 Alarm-Medic ...... (248) 349-9144 Food Services Resources (248) 738-6759 Coca-Cola Bottlers of Ml FRESH PRODUCE: American Mailers ...... (313) 842-4000 George Enterprises . . (248) 851-6990 . Auburn Hills (248) 373-2653 Aunt Mid Produce Co (313)841-7911 AmericanA S ystem s...... (248) 379-1575 Great North F o od s...... (989) 356-2281 Detroit (313) 825-2700 AMT Telecom Group...... (248) 862-2000 Hershey Creamery...... (734)449-0301 ...... Madison Heights (248) 585-1248 ICE PRODUCTS: Andrews Brothers Inc. I & K Distributing (734 ) 513-8282 Van Buren (734) 397-2700 Arctic Glacier, Inc. (810)987-7100 Detroit Produce Terminal (313)841-7400 International Ice...... (313)841-7711 ...... Port Huron (810) 982-8501 International Ice, Inc...... (313)841-7711 A S C. Security Systems (734)416-5550 International Wholesale... (248) 544-8555 Coors Brewing Co...... (513)412-5318 Quincy Ice Co.. (248) 968-4290 Bellanca, Beattie, DeLisle ...... (313) 882-1100 Interstate Brands/ Diageo...... 1-800-462-6504 U S Ice Corp (313)862-3344 Binno & Binno Investment Co. (248) 540-7350 Wonder Bread/Hostess (586) 792 7580 E & J Gallo Winery (248) 647-0010 C Roy & Sons (810) 387-3975 Jerusalem Foods ...... (313)538-1511 Eastown Distnbutors...... (313)867-6900 INVENTORY SERVICES: Calvin Zara Insurance Agency (248) 433-8508 Kaps Wholesale Foods. (313)567-6710 Faygo Beverages, Inc. . . (313)925-1600 Action Inventory Services (586) 573-2550 Carttromcs, Inc...... (760) 707-1265 Karr Foodservice Distnbutors (313) 272-6400 Future Brands...... (248)471-2280 Goh’s Inventory Service ...... (248) 353-5033 Cateraid, Inc...... (517)546-8217 Kay Distributing___ (616)527-0120 Galaxy Wine ...... (248) 363-5300 Central Alarm Signal (313) 864-8900 Liberty Wholesale...... (586) 755-3629 General Wine & Liquor Co. . (313)867-0521 INSURANCE: Cherry Marketing Institute. . (517) 669-4264 Lipan Foods...... (586) 447-3500 Great Lakes Beverage...... (313)865-3900 AAA Michigan 1-800-AAA-MICH Clear Rate Communications (734)427-4411 Metro D Sales ...... (734)416-8969 Great Lakes Distribution (810)794-1300 AFLAC (248) 968-9884, Ext 103 Closed Circuit Communications (248) 682-6400 Mexico Wholesale (313)554-0310 Hansen's Beverage...... (313) 575-6874 Al Bourdeau Insurance Services, Inc. (248) Constellation New Energy (248) 936-9027 Michigan Quality Sales .. (313) 255-7333 Henry A. Fox Sales Co...... 1-800-808-6985 855-6690 Cox, Hodgman & Giarmarco, PC. (248) 457-7000 Nash Finch...... (989)777-1891 Hubert Distributors, Inc...... (248) 858-2340 Capital Insurance Group (248) 333-2500 D J. King & Associates 1-800-781-5316 Nat Sherman...... (248) 202-7339 Intrastate Distributors ...... (313) 892-3000 Gadaleto, Ramsby & Assoc. 1-800-263-3784 Diamond Financial Products (248) 331-2222 Nikhlas Distnbutors (Cabana) (248) 582-8830 J. Lewis Cooper Co...... (313)278-5400 Frank McBride J r, Inc...... (586) 445-2300 Dragon Systems (231)876-1926 Norquick Distributing Co. (734)2541000 Jones Sodas .... (269) 382-4200 JS Advisor Enterprises, Inc...... (248)684-0127 DTE Energy (313) 237-9225 Robert D. Arnold & Assoc. (810) 635-8411 Josulete Wines, Inc...... (313) 538-5609 ...... Cell (586) 242-1331 Excel Check Management...... (248) 787-6663 Roma Foods Inc...... (313) 535-3377 Kent Beverage Co. Inc...... (616)241-5022 Meadowbrook Insurance (248) 358-1100 Financial & Marketing Ent. . . (248)541-6744 Royal Distributors of M l. .. (248) 350-1300 McCormick Distilling Co .. (586) 296-4845 North Pointe Insurance (248)358-1171 Freedom Systems Midwest, Inc. (248) 399-6904 S. Abraham & Sons...... (616) 453-6358 Michigan Grape & Wine Rocky Husaynu & Associates (248) 851-2227 Gadaleto, Ramsby & Assoc.. 1-800-263-3784 Sara Lee Coffee & Tea (734)414-8433 Industry C ouncil...... (517)373-1104 Great Lakes Data Systems. (248) 356-4100 Shaw-Ross International Importers (313)873-7677 Miller Brewing Company . . (414)259-9444 MANUFACTURERS: Guardian A larm...... (248) 233-1645 Sherwood Foods Distributors (313)366-3100 National Wine & Sprits .. .. 1-888-697-6424 Art One Sign Expo, Inc...... (248)591-2781 ICU Surveillance ...... (248) 255-6419 Spartan Stores, Inc. (734)455-1400 1-888-642-4697 General Mills (248) 465-6348 JJ Security Systems (847) 668-2666 Suburban News: Southfield (248) 945-4900 Northern Falls, LLC...... 1-866-270-5944 Jaeggi Hillsdale Country Cheese (517)368-5990 Kansmacker (248) 249-6666 Supervalu Central Region (937) 3747874 Paramount Coffee ...... (517)372-3330 Old Orchard B rands...... (616) 887-1745 Karoub Associates...... (517)482-5000 Tom Maceri & Son, Inc. .. (313)568-0557 Pepsi-Cola Bottling Group Red Pelican Food Products .. (313) 921-2500 Market Pros...... (248) 349-6438 Tony's Pizza Service...... (616) 795-0220 - Detroit...... 1-800-368-9945 Singer Extract Laboratory .... . (313)345-5880 Metro Media Associates...... (248) 625-0070 Total Marketing Distributor (734)641-3353 - Howell ...... 1-800-878-8239 Strauss Brothers Co...... (313)832-1600 Milentek-Energy U S Ice Corp...... (313)862-3344 - Pontiac ...... (248)334-3512 Conservation Service...... (248) 932-1222 United Wholesale Grocery . (517)267-9600 Perk and Brew Corp .. (734) 669-8380 MEAT PRODUCERS/PACKERS: Optimal Payment Systems . (248) 540-7900 Value Wholesale...... (248)967-2900 Pernod Ricard USA (248)601-0172 Bar S Foods...... (248)414-3857 Paul Meyer Real Estate (248) 398-7285 Weeks Food Corp ...... (586) 727-3535 (313)882-7630 Petitpren, Inc...... (586)468-1402 Indiana Packers C orp...... (765)564-7206 POS Systems Group Inc . 1-877-271-3730 Wine Institute...... Powers Distributing Co. Inc.. (248) 393-3700 Kowalski Sausage Company . . (313) 873-8200 Power One (734) 455-2500 Premier Energy Marketing Sara Lee Coffee & Tea (734) 414-8433 Nagel Meat Processing Co. (517)568-5035 1-866-348-7605 ASSOCIATES: Prepaid Legal Services (313)427-4444 Seven-Up of Detroit.. (313)937-3500 Strauss Brothers Co...... (313) 832-1600 (586) 777-9700 American Synergistics... . Rainbow Tuxedo ...... (248)477-6610 (3 1 3 ) 567-2206 Tri-County Beverage...... (313)584-7100 Wolverine Packing Company . (313)568-1900 Canadian Consulate General REA Marketing...... (989) 386-9666 Wileden & Associates...... (248 ) 588-2358 Vintage Wines (586) 294-9390 MEDIA: Sagemark Consulting, Inc. .. (248) 948-5124 Salim Abraham, B ro k e r...... BROKERS/REPRESENTAT1VES. The Beverage Journal 1-800-292-2896 (248 ) 349-1474 Secure Checks ...... (586) 758-7221 Bob Arnold & Associates (248) 646-0578 Booth Newspapers — (734) 994-6983

2 6 | AFD Food & BeverageREPORT Spartan, Continued from page 16.

And. if I have the right players, we well we’re doing with it.” win.” Even though Sturken’s tenure Putting together a winning looks pretty impressive on game plan meant several big paper, it has not been without its changes. Some of those changes controversies. Most recently, rumors have been practical: reducing the circulated throughout national number of company-owned retail media that Spartan was considering stores, reinventing the private- a buyout of Farmer Jack, the label grocery program to cut out ailing Detroit-area grocery chain. waste and increase quality and Many reports mentioned Sturken’s profitability, investing in technology experience with Farmer Jack’s throughout the supply chain. But parent company, Great Atlantic & more important to Sturken were Pacific Tea Co., as evidence that he the philosophical changes. Spartan was pushing for a merger. needed to rethink who its customers The accounts turned out to be were. baseless. But, they brought out the “The company was primarily a renewed wrath of Loeb Partners, wholesaler. They were really good a New York equity firm that holds at buying and selling cases of a major share of Spartan stock. merchandise to other retailers, but The firm has publicly criticized they didn’t have a retail mindset,” Spartan’s leadership for failing to Sturken said. "When I came here, heed its advice — primarily to sell the customer was the store owner. the company, in order for Loeb to Today the customer is the consumer. turn a profit on its shares. Sturken finding “the next big thing.” With next move. Where might that be? That’s such a huge difference.” understands the firm’s motivation each new level of responsibility and "Oh, hey. I'm there. This is With the changes he has to reap a return on its investment, success he achieved, he has always nirvana,” he said. "This is the last implemented in place, the company but he also understands that his looked beyond to the next step up. stop.’ is on much firmer financial footing. primary motivation is not to drive "It was always about the next job, At 62, the next step for him will Sturken and his leadership team up the share price. It is to ensure and the next job. Every job I got. much more likely involve grandkids are still working to curb expenses the company’s long-term health. I’d just set my sights on the next and fishing than boardrooms and and find new revenue streams. "The people that 1 really care job, then the next job.” budget meetings. But, maybe ... if The company entered the gasoline about are our retail customers, our It appears that Sturken has the right offer were to come along? market in 2005, and will continue employees, the people that come patched the leaks and that Spartan “There isn’t enough money to add gas stations to a handful of into our stores that we supply Stores is now firmly afloat. The printed.” existing grocery locations each year. and operate, and, of course, the grumblings of Loeb Partners aside, That business has been a runaway shareholders. I work for them. But shareholders seem to be happy. His -Reprinted with permission from the success. I think that if I keep focused on track record would suggest that Grand Rapids Business Journal. “We get a sales increase in the the first part, the $10 stock price Sturken might be considering his supermarket when we put in gas. becomes $11 and $12, and the Automatic. Given,” said Sturken. shareholders are happy.” It’s a home run. I’m amazed at how Sturken has always been driven by Shopping by invitation

The Boston Globe recently holiday season.” reported that an expanding number The stores taking this approach of retailers have “introduced range from Armani to Gap, and invitation-only shopping events as they are formulating their guest a way to promote their products lists through the use of frequent with offers of free food, discounts, shopper data that tells them who and exclusivity. It's a way to their best customers are, how much build loyalty when stores can’t they spend, how often they are in compete with the convenience the store, and what products they of the Internet or low prices at are buying. discount stores. Retail analysts Kevin Coupe, editor of say they expect stores to adopt MomingNewsBeat.com, believes more aggressive strategies such as that food retailers could benefit hosting exclusive events to boost from this type of aggressive sales, especially after a sluggish marketing.

M arch 2006 | 27 Looking for Brands Customers Recognize & Trust?

Lettuce Help.

Spartan

For information on how Spartan Stores can help your business think smarter call 616-878-2248 or visit our web site at www.spartanstores.com