▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲▲ ▲ ▲ ▲ ▲ ▲ ▲ INSIDE ▲ TAKING THIS ISSUE STOCK by Jeff Metzger Food Trade Beyond Collateral Damage, Brown’s ShopRite 14 Of Haverford Becomes First Soda Tax Victim Giant/Martin’s Bertram Is Part Of Jeff Brown was right. Brown, one of Wakefern’s ShopRite member/owners, ‘Outlook’ Panel predicted the negative impacts of the Philadelphia beverage tax (one of the highest in the nation at 1.5 cents per ounce on sweetened beverages) even before it became law two years ago this month. With seven (six ShopRites and a Fresh Grocer) of his 13 stores located within Philadelphia’s city limits, Brown’s business has been arguably impacted more than any other op- erator in the Delaware Valley, and nowthe dramatic loss of sales will result in a store closing. On March 14, Brown will shutter his 41,000 square foot store on 67th Street and Haverford Avenue in West Philadelphia, marking (to our knowledge) Kreider Farms A PUBLICATION OF BEST-MET PUBLISHING, INC. the first supermarket that will close because of the impact of the beverage Addresses American Humane Association NVol. 75 No. 1 ewsOUTLOOK ISSUE January 2019 See TAKING STOCK on page 6 22 37 Store Acquisition Will Boost Stop & Shop’s Long Island Leadership Position ’s 89-Year Legacy Ends With Delhaize Sale Six weeks ago, of growth and market share gain. rently expected to close during chief executive Frans Muller said Our commitment is to self-fund the first quarter of 2019, subject that new acquisition opportu- the investments needed to drive to customary closing conditions. nities would be something the growth, as our new cost savings Financial terms of the deal were Dutch retailer is open to. On program will allow us to maintain not disclosed. January 4, the company made its a stable group margin through Stop & Shop is the current share biggest supermarket deal since 2019. This will allow us to invest of market leader on Long Island the 2016 merger between Ahold in our stores, omnichannel of- (Nassau and Suffolk counties) A NEW REGO FRESH MARKET PLACE RECENTLY OPENED AT 6378 and Delhaize when it agreed to fering and technology, while we with 51 stores and an estimated all Woodhaven Boulevard in Rego Park, Queens. Seen at the grand opening are (l-r) Julio Vela, Krasdale; store owner Frank Felix Zapata; acquire King Kullen’s 37 Long Is- explore and seize new leadership channel share of 21 percent, ac- and Carlos Padilla, Krasdale. land stores. opportunities in existing and ad- cording to Food Trade News’ data. Speaking at Ahold Delhaize’s jacent markets.” Additionally, it intends to spend Some Existing Units May Be Converted To WFM Model Capital Markets Day in Manhat- The King Kullen purchase is approximately $150 million on tan on November 13, Muller not- certainly an “in-market” deal for upgrading its existing stores on -Owned Whole Foods Set ed, “We worked very hard for two the Northeast’s largest retailer and the Island. years on integration. Now is the the newly acquired units will be King Kullen’s current mar- To Scrap ‘365’ Discount Division time to take us to the next phase operated by the company’s Stop & ket share is estimated to be 5.6 Whole Foods plans to scrap The news first broke on Yahoo Shop brand. Included in the deal percent of the large $10 billion its 365 By Whole Foods store Finance, which reported on an are King Kullen’s 32 supermar- retail food and drug market. It format, less than two years after email to company associates from kets, five Wild by Nature natural/ is the fifth largest retailer in the launching the concept, which the retailer’s co-founder and CEO organic stores and the use of its two-. offered lower prices and a more John Mackey. In the email, Mack- corporate offices located in Beth- See AHOLD/DELHAIZE local flavor than the compa- See WFM 365 page, NY. The acquisition is cur- on page 18 ny’s traditional WFM units. on page 30 Bake Locall, Wante Everywher

Available For Your Stores Now! Contact 866.498.2253 sssssssssssssssssssssssssssssssssssssssssssssssssssssssss OBITUARY Nathan Litman “Nate” Ostroff, a Having studied food marketing, he a daughter-in-law Jordana, and two Philadelphia native and long-time became a food broker in the Tri-State grandchildren, Layla and Avery. In food broker, passed away suddenly area. He was highly respected in the addition, he is survived by his brother December 29 while on vacation with food industry and served as president Harvey (Lisa) and their three children his family in Aruba. of Philadelphia Food Trades Organi- Noah (Ashley) Ostroff, Matthew (Ka- Who Ostroff attended Overbrook Senior zation (PFTO), Tri-State Dairy Deli tie) Ostroff and Hannah Appel (Ben) High School, graduating in 1966, and Association and later for the Mid-At- and their families. He was pre-de- went on to study at Temple and Saint lantic Food Trade Organization ceased by his parents Rita (Litman) Joseph’s University. (MAFTO). He was also active in the Ostroff and Jules Ostroff. knows? Ostroff was in the wholesale food Golden Slipper Club Charities and In lieu of flowers, donations may business his entire working career. He the Golden Slipper Camp. be made to congregation Beth El Ner began by delivering baked goods with Ostroff is survived by his wife Judi Tamid, Broomall, PA or a charity of his grandfather at the Jersey Shore. and two children, Carli and Loren, the donor’s choice.

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2 | FOOD TRADE NEWS January 2019 www.best-met.com www.best-met.com January 2019 FOOD TRADE NEWS | 3 years at the company. Bill held a great holiday tradition rewards industry and this year the FFB these turkeys are delivered to variety of responsibilities at Jet- any fan donating at least 30 will be adding a new and excit- neighbors in need this year,” said ro/RD but was predominately pounds of non-perishable food ing component, “Dining in the Larry Inserra Jr., chairman and in perishables procurement po- with two complimentary tickets Dark.” All attendees will be giv- CEO of Inserra . sitions. More interestingly, Bill to a Yankee game in 2019. New en blackout masks and be served Well done, Inserra ShopRite. commuted from Pennsylvania York Yankee VP of marketing, their meals in the dark. “Dining We were happy to hear that Joe every day (via train) to College Deb Tymon told us, “This start- in the Dark is a powerful dining Kuscuzba has landed a spot with Point, Queens where the compa- ed in 1994 and we totaled 2,000 experience, inviting you into a House Foods America as region- ny located. When he first joined pounds of donations that year. world of sensitivity you may nev- al sales manager-American mar- the big wholesale cash & carry Thanks to partners like Krasdale er have experienced, leading you ket east. Joe was always one of supplier, its offices were located we have grown tremendously, through a unique journey in the those recognizable faces at Bim- on Manhattan’s West Side and and this year will receive 90,000 dark,” Jason told us. For more in- bo Bakeries for nearly 30 years the commute was waaay easier. pounds of food (that’s two truck- formation about A Vision for the where he had risen through the Ever the trooper, Bill lengthened loads) from Krasdale alone.” Gus Future please contact Katie Van ranks over the years from a route Metro Beat his commute and continued his Lebiak, Alpha 1 Marketing EVP/ Benschoten at 212,244.1470 or salesman (with the old Enten- efforts on behalf of Jetrot/RD. CMO said, “We thank all of our KVanBenschoten@FightBlind- mann’s Company) all the way up Kudos Bill on a long successful vendor partners and Krasdale ness.org. to area sales manager. In his new By Kevin Gallagher career and happy retirement. and Alpha 1 associates in mak- And a big shout out to Inser- spot at House Foods he will con- The New Year rang in with ing this happen for the local ra Supermarkets, owner and tinue to expand the company’s Welcome to 2019. I trust you a positive sound for Bob communities.” Great job by all operator of 22 ShopRite stores, growth of its wide range of fresh all had a terrific holiday season Cignarella and his team at RDD involved. for donating 6,500 turkeys to tofu products. Good luck, Joe. and are ready to start the new Associates. Effective February 1 Well done to Mitch Dimatteo people in need during the 2018 Don’t forget to mark your cal- year with energy and focus. We the big perishables broker will and his team at Inspired Foods holiday season. ShopRite volun- endars for the Connecticut Food all look to this time of year as an handle the Siggi’s Skyr yogurt on another successful year of teers helped load pallets of fro- Association’s (CFA) 2019 annual opportunity for new things and line (a division of Lactalis USA) business as he and his gang toast- zen turkeys into waiting trucks, meeting and dinner reception. hope for a better year than the in the metro New York/New ed the holidays with a soiree at vans and cars destined for orga- CFA president Wayne Pesce tells previous one. In all likelihood Jersey markets. Skyr is the tra- their Ocean Twp., NJ offices with nizations such as the Little Sis- us the big evening is scheduled this coming year will bring a va- ditional yogurt of Iceland and is customers and principals on ters of the Poor, Table to Table, for February 28 at The Society riety of changes to our industry a strained non-fat yogurt made hand to mingle and celebrate the Community Foodbank of New Room in Hartford, CT. The night and we look forward to being by incubating skim milk with season. The big bakery broker is Jersey, the American Legion and includes a cocktail hour, annual there for you to discuss and re- live active cultures. Then the now entering its seventh year of the Salvation Army. The turkeys meeting and dinner reception. port on them. Happy New Year. I whey, the water naturally found business and has grown into oth- were distributed to 150 commu- For more information contact hope 2019 is a great one for you in milk, is strained away to make er markets as well as dominating nity and faith-based organiza- the CFA at 860.216.4055 or via and your loved ones. for a much thicker, creamier and the local bakery scene. Congrats. tions located in the areas where email at ctfood@ctfoodassocia- I won’t dwell on the King concentrated yogurt. It takes Mark your calendars for Inserra ShopRite stores operate tion.org. Kullen/Stop & Shop deal in this four times the milk to make one March 7 for a really nice and in Bergen, Hudson and Passa- Well, that will wrap it up for space as we have ample cover- cup of Siggi’s compared to reg- worthy charitable event. The ic counties in New Jersey, and this month. That said, let me wish age on page one of this issue and ular yogurt. The Siggi’s line will Foundation for Fighting Blind- Rockland County, NY. The tur- you all a very Happy New Year. I we blasted an email news alert join the Stonyfield yogurt line ness (FFB) Vision for the Future keys, which were picked up by hope the coming months brings right after it happened. (If you (also a division of Lactalis) at dinner will be held at Terrace representatives from local and you all hope, calmness, kindness want to be on our email alert list, RDD which was appointed for on the Park, Flushing Meadow regional organizations, helped and a fulfillment of your dreams. just let me know.) What I will representation last January. Con- Park, NY and director and trust- help feed 50,000 people during I wish you many successes, wise say, though, is that it is sad that grats. ee of FFB Jason Ferreira of Fer- the holiday season. decisions, satisfaction, peace and another long tenured local cus- Kudos to the good folks at reira told us that this “We are honored to join our prosperity for the entire year of tomer will no longer be on our Krasdale Foods and the New year’s honoree will be Fine Fare neighbors and friends today 2019. All the best for you and landscape and it seems as though York Yankees as they teamed up store owner Rudy Fuertes who who represent organizations your loved ones. every year brings another similar once again for the annual Yan- is also past president of the Na- doing important work in the As always you can reach me story. kees Holiday Food Drive. The tional Supermarket Association. community. We thank these or- at 201.250.2217 or kgallagher@ A happy retirement to Bill event is held at Yankee Stadium There is always a big turnout at ganizations for raising awareness best-met.com. Costello of Jetro/Restaurant every holiday season and this this event from the entire food about hunger and making sure Depot who is retiring after 37

Jeffrey W. Metzger Karen Fernandez Food Trade News (USPS 562290) is President/Publisher Director of published­ monthly for $69 a year by PUBLISHED THE THIRD Terri Maloney Marketing/Digital Strategist Best-Met Publishing Co. Inc., 5537 MONDAY OF EACH MONTH VP/Editorial Director Beth Pripstein Twin Knolls Rd., Suite 438, Colum­bia, By Best-Met Publishing Co., Inc. Maria Maggio Circulation Manager Md. 21045. Periodicals Postage­ paid Publishers of VP/GM-Food Trade News Richard J. Bestany at Columbia, Maryland and additional Food World Kevin Gallagher Chairman Emeritus mailing offices. POSTMASTER:­ Send and Food Trade News Vice President address changes to Best-Met Pub- lishing Co. Inc., 5537 Twin Knolls Rd., Suite 438, Colum­bia, Md. 21045.

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www.best-met.com January 2019 FOOD TRADE NEWS | 5 ssssssssssssssssssssssssssssss TAKING STOCK From page 1 tax. The fourth-generation independent retailer said that all current associates (about 110) will be given an opportunity to transfer to other stores. He will also offer current customers free ride-sharing via Lyft to his next closest store on 52nd Street and Parkside Avenue, about two miles away. According to Brown, revenue at the Haverford store has plummeted 23 per- cent over the past two years and last year the store lost more than $1 million. An overall store analysis indicates Brown’s city stores are down approximately 15 percent primarily due to the beverage tax. Border stores like Haverford Avenue, which is about a mile from the Mont- gomery County line, are even more affected as consumers can travel short dis- tances to buy beverages in Montgomery, Bucks or Delaware counties where there is no supplemental beverage tax - they only pay the state sales tax of 6 percent. What seems so cruelly ironic about this situation is that Brown is one of the most socially active and selfless retailers in the country. He and his wife Sandy founded Uplift Solutions 10 years ago, a non-profit organization designed to help entrepreneurs in underserved communities (food deserts) gain access to funding and training so they can open stores that can offer residents fresh and healthy foods. In fact, most of Brown’s stores in Philadelphia are located in neighborhoods that would qualify as food deserts. Brown fears that other supermarkets in the city will also be forced to close due to the effects of the beverage tax (most vulnerable, based on number of city stores, are five other ShopRite member/owners and ). That will leave more areas to eventually become underserved and will affect the quality of the lives of those residents. “Mayor (Jim) Kenney talks about the tax helping education in the city and that’s a good thing, but it shouldn’t also hurt low income residents and result in the loss of good businesses and jobs in the city,” proclaimed Brown. “We are also helping people by providing careers in the supermarket industry and ac- cess to affordable fresh food, produce and groceries. The loss of the Haverford store means the area could become a food desert. All of those things must be factored into the equation about how we help people live longer, healthier lives.” In the two years since its inception, Kenney’s original projection that the tax TAKING STOCK continues on page 12

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www.best-met.com January 2019 FOOD TRADE NEWS | 7 2018 and they are awesome. More gram also began. He was involved best times spent together were just and surrounding communities. than 26 million pounds of food with the it from the time he was hanging out on the beach in Vent- Nate was my Monday morning was distributed to those who are hired until now. It is the first and nor, his happy place. Nate loved call – 9:00 a.m. He was my “go to” food insecure in the Delaware Val- longest running state agricultur- to play quoits on the beach with resource. But most importantly, he ley. Seventy percent of that number al brand marketing program. He his long-time friends, talk shop, was my friend, one of the ones you was healthy food. Seniors in need was also the main point of contact more recently play with his grand- can count on one hand. A few days received 1.7 million pounds while for international marketing devel- daughters, and sit at the water’s before he left for Aruba, I saw him 173 thousand pounds was dis- opment and for the past 10 years, edge until the sun was setting. He at a shiva for his mother-in-law. tributed to various children’s pro- he’s overseen the department’s dis- was the quintessential salesman, a Before giving him a hug goodbye, grams. Over 365 different agencies bursement of more than $6 million bag schlepper, as we in sales affec- I prophetically asked him, “What received deliveries by trucks that to commodity councils and uni- tionately call ourselves. He knew am I going to do without talking drove 181 thousand miles to get versity researchers studying crop everyone in the food industry and with you for two weeks?” I know Soup them what they needed. The Phila- management and health. Happy had fabulous stories going as far he’s in a good place now, his happy to Nutz bundance Community Kitchen trails, Logan. Enjoy your retire- back as the early 70s. On one of place for sure. Rest in peace, Nate. By Maria Maggio had 48 graduates this year with ment! our more recent excursions to tour Birthday shout outs for the drea- over 850 to date. PCKatering, an Heaven gained another angel on the Kosher supermarkets in North- ry month of January go to: Linda adult culinary arts job training December 28. My buddy/dearest east Philly, we did “deli” at one of Doherty, NJFC; Eve Gigis, Acme Welcome to 2019! Many years program for low-income adults friend of almost 40 years and local his favorite places, Steve Stein’s Fa- Markets; Ruth “Momma Dietz” ago, our fearless leader J e ff who need a second chance at life, industry sales legend Nate Ostroff mous Deli. The conversation was Eni, Dietz & Watson; Gary Larkin, Metzger asked me what it is I think created 83 jobs in its first year. But passed away while on vacation lively and historic. His mind was Paul G. Nester and Co.; David Pa- we do here at Food Trade News. My most importantly, 14 thousand with his family in Aruba. He and like a steel trap when it came to the tragnoni, SunFed Ranch; George response: to inform, educate and volunteers saved Philabundance his wife Judi spent two weeks at Philadelphia market’s players. Na- Latella, Saint Joseph’s University; entertain. To our loyal readers, ex- over $725 thousand in expenses. the end of each year there. I know te’s reputation was impeccable and Tim Musgrove, Herr Foods; Kar- pect more of the same in 2019 with How can your company help fight how happy he was to go this year he was as honest as the day is long. en Fernandez, Food World/Food an added twist coming soon. Sorry, hunger in 2019? Go to www.phila- as they hadn’t gone in the past cou- His dedication to giving back to Trade News; and FTN alumni Meg no hints. Our industry is a contin- bundance.org to find out. ple of years. Nate was one of the the industry went unmatched. He Major, Bob Ingram and Scott uous chess game, so keep it here Taking a walk into the sunset is “Three Musketeers,” also known was a founding member and past Lichterman. Buon Compleanno a for all the moves and hopefully no Logan Brown who is retiring at as “the Clique” back in the 1980s - president of the Tri-State Dairy tutti! checkmates as we head full force the end of the month after 31 years Nate, the late Jeffrey Bilk and me. Deli Association, past president of into the year. with the New Jersey Department of Now, two of my closest friends in Philadelphia Food Trades Organi- Quote of the month: “For last year’s Philabundance, the region’s larg- Agriculture (NJDA). A graduate of the industry have been taken too zation and current board member words belong to last year’s lan- est food bank serving nine coun- Rider University, Logan began his soon. Nate was a friend who be- of the Mid Atlantic Food Trade Or- guage and next year’s words await ties in Pennsylvania and New Jer- tenure with NJDA at the time the came family. We celebrated many ganization…all charitable groups another voice. And to make an end sey just released their statistics for Jersey Fresh brand marketing pro- happy occasions together, but the helping those in both the food is to make a beginning.” T.S. Eliot

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8 | FOOD TRADE NEWS January 2019 www.best-met.com Does the world need another yogurt? If it’s made with better milk, then yes. We’re unleashing better milk yogurt to a generation who missed out on what dairy was like before standardization and homogenization made milk look and taste the same. Our “better milk” comes from grass-fed Jersey cows and is A2 certified and Non-GMO Project verified. Original, Strawberry, Maple and Honey flavors. Call Donna Serio at 908-209-8238 or [email protected] to find out more.

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www.best-met.com January 2019 FOOD TRADE NEWS | 9 ssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss PEOPLE

America, Target and General ness development. In his new Schraad, president and CEO of Electric, where he focused on post, Norris will be leading new Schraad & Associates. “We have implementing successful cus- business development, strategy worked hard to become the in- tomer loyalty programs, digital and implementation for the or- dustry’s most effective national payment solutions, and launch- ganization. solution and Woody will help us ing strategic partnerships. Norris joins OSMG after build upon our collective suc- Frans Muller, president and spending many years with Acos- cess.” CEO of Ahold Delhaize, said: ta Sales and Marketing as its “We are thrilled to welcome “I’m thrilled to welcome Far- president of business develop- Woody to our team,” comment- han to Ahold Delhaize. With ment. Prior to Acosta, he spent ed Joel Barham, president and his knowledge of the digital cus- 20 years at Crossmark, includ- CEO of SellEthics. “Adding tomer experience in a wide va- ing 10 years as president. Woody is just one more indica- riety of industries, he will help “Never before have we seen tion of our willingness to invest further accelerate Ahold Del- such dramatic shifts in the sales in the best industry talent.” haize’s digital transformation, and marketing agency land- “I’m looking forward to cham- a key element in our Leading scape,” said John Saidnawey, pioning our compelling story,” Farhan Siddiqi Woody Norris Together strategy. Farhan will chairman and CEO of JOH. said Norris. “OSMG is winning Farhan Siddiqi has been recently served as chief digital drive best practice sharing in “Over the past few years, we’ve because we focus on investing in named by Ahold Delhaize as officer and led the restaurant digital and e-commerce across seen our OSMG model contin- our people and services to drive Chief Digital Officer and mem- chain’s digital transformation, our great local brands while le- ue to gain traction. We offer the performance for our clients and ber of the executive committee, including the launch of mobile veraging our global scale, sup- best possible recipe for success, customers. Having no debt and effective January 28, 2019. In commerce in 20,000 restau- porting us in doubling net con- delivering excellence locally no financial obligation provides this role, he will drive digital rants, a new mobile app and the sumer online sales to around 7 and centralizing services where OSMG the ability to attract and transformation and innovation upgrade of self-service ordering billion euros by 2021.” needed. We are debt-free and retain the very best in the indus- across Ahold Delhaize’s great lo- kiosks. He was also responsible constantly investing back into try. The future is very bright for cal brands, focusing on loyalty, for data analytics and extending The On-Shelf Marketingour business.” our OSMG team.” data analytics and personaliza- customer relationship manage- Group (OSMG) leadership team “The timing is perfect to add Norris will be working closely tion. ment capabilities. Prior to this, recently announced that Woody Woody’s robust industry acu- Farhan joins Ahold Delhaize Farhan held several key leader- Norris is joining its team as ex- men, relationships and insight See PEOPLE from McDonald’s where he most ship positions within Bank of ecutive vice president of busi- to our OSMG team,” said Bill on page 24

10 | FOOD TRADE NEWS January 2019 www.best-met.com www.best-met.com January 2019 FOOD TRADE NEWS | 11 ssssssssssssssssssssssssssssss TAKING STOCK GROCER OPPORTUNITY From page 6 1–55 Wanaque Avenue, would raise $90 million annually has fallen short. Kenney has also reduced the POMPTON LAKES, NJ Pompton Lakes, NJ 07442 number of community schools and pre-K programs it will fund. Asked about his current relationship with the mayor, Brown, who lives in the city, said it’s virtually non-existent. “Clearly, he’s not interested in having a dialogue about the financial real- ities that all retailers face with the beverage tax,” Brown noted. “Furthermore, he’s made this a political issue with his attacks on me. But this isn’t just about me. It’s about all food retailers who do business in Philadelphia. And ultimately it’s about the citizens who live here who will find fewer shopping options be- cause of the burden that’s placed upon businesses by this unfair tax.” Then again, it’s an election year and Kenney’s attempt for a second term as mayor will likely be challenged as never before.

Rite Aid In Jeopardy Of Being Delisted From NYSE Rite Aid Corporation announced January 3 that the New York Stock Ex- change (NYSE) has notified the company that it is no longer in compliance with NYSE continued listing standard rules because the per share trading price of its common stock has fallen below the NYSE’s share price rule. The NYSE requires the average closing price of a listed company’s common stock to be at least $1.00 per share over a consecutive 30 trading-day period. Shares of the drugstore chain have fallen 64 percent over the past year. SEEKING QUALIFIED GROCERY OPERATORS Rite Aid’s stock has hovered under $1 per share over the past month, breaking the NYSE’s rule. At presstime on January 17, the Camp Hill, PA-based drug chain’s shares were trading at 88 cents. Rite Aid has been left to pick up the pieces after two merger plans failed in recent years. In 2015, it agreed to sell nearly 4,600 grocery stores to Walgreens for $17.2 billion. After nearly two years of review by the Federal Trade Commis- SUCCESSFUL GROCERY SITE FOR 50 YEARS sion, which cited antitrust concerns, the large federal agency would only allow a portion of the deal to proceed. That decision resulted in a restructuring of that deal in which Walgreens acquired 1,932 Rite Aid stores (and three distribution centers) for $4.4 billion. That left Rite Aid weakened and in early 2018 it announced it had struck a deal to merge with supermarket chain . However, Rite Aid sharehold- SQUARE FEET AVAILABLE ers voiced their unhappiness with the terms of that deal and it was pulled off the table on August 8, a day prior to a shareholder vote, when it became clear SMART DIVISIONS CONSIDERED! that the merger would not be approved by Rite Aid’s holders. 20k - 62k After the deal collapsed, Rite Aid overhauled its board of directors with three new members replacing existing directors. It also separated the CEO and chairman positions, naming director Bruce Bodaken as chairman and leaving John Standley in place as CEO. Standley, who joined Rite Aid in 1999 as exec- 5 MILE utive VP and CFO, left the company for three years to become CEO of , 114 K $ 105 K $ 225 K before rejoining the drug chain in 2008 as president and COO. In 2010, he RADIUS POPULATION MED HH INCOME AVG HH INCOME was elevated to chief executive and two years later added the title of chairman. In accordance with the NYSE’s rules, Rite Aid has six months from the re- ceipt of the notice to regain compliance with the NYSE’s price condition or until the company’s next annual meeting of stockholders if stockholder approval is • 2ND GENERATION GROCERY SPACE required, as would be the case to effectuate a reverse stock split, to cure the share price non-compliance. During this time period, Rite Aid’s common stock • 700+ APARTMENTS BEING DEVELOPED WITHIN 1 MILE will continue to be listed and trade on the NYSE as usual. Rite Aid is currently in compliance with all other NYSE continued listing standard rules. • WALKABILITY TO DOWNTOWN Rite Aid said it intends to pursue measures to cure the share price non-com- • EXCELLENT REGIONAL ACCESS VIA 287 EXIT 55! pliance, including through a reverse stock split of the company’s common stock, subject to stockholder approval no later than at Rite Aid’s next annual meeting, if such action is necessary to cure the share price non-compliance. Under NYSE rules, Rite Aid can regain compliance at any time during the LEASING CONTACT: six-month cure period if on the last trading day of any calendar month during the cure period Rite Aid has a closing share price of at least $1.00 and an aver- JOE ALLEGRETTI age closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month or on the last day of the cure period. 203.862.5422 Rite Aid had fiscal 2018 annual revenues of $21.5 billion. [email protected] TAKING STOCK continues on page 22

12 | FOOD TRADE NEWS January 2019 www.best-met.com Krasdale Foods, New York Yankees Team Up For 25th Annual Holiday Food Drive

LEFT: Gus Lebiak (r) of Alpha 1 Marketing worked Krasdale Foods and the New York Yankees teamed up for the 25th annual Yankees hol- with the Grinch to greet the throngs of fans coming iday food drive. The great holiday tradition rewards any fan donating at least 30 pounds to Yankee Stadium for the food drive. of non-perishable food with two complimentary tickets to a future Yankees game. Kras- dale hit it out of the park with a 90,000 pound donation of food to the cause. Seen at ABOVE: During the day, Christopher Guzman (l) of the event held at Yankee Stadium are (l-r) Brian Smith, Yankees; Roy Cohen, Krasdale; Alpha 1 Marketing gave interviews to local media; Deborah Tymon, Yankees; Dylana Silver, Gus Lebiak and Christopher Guzman, Alpha 1 in this photo he details the day’s event with Chan- Marketing; and Neil Gewelb, Krasdale. nel 41 Univision.

We don’t tell you which retailers are out of milk,

but we will tell you which ones are out of step. Food Trade News. The news you care about. www.best-met.com

www.best-met.com January 2019 FOOD TRADE NEWS | 13 OUTLOOK 2019

As we do each January, Food Trade News has asked some of the region’s retailers to take a look into The customer is at the center their crystal balls for what they expect see on the horizon for the new year. Our panelists are: Nich- of everything we do at GIANT. olas Bertram, president of Giant/Martin’s; Jim Kidwell, director of marketing/advertising/buying for We know our core customer – Family Owned Markets; and Karen Meleta, VP-consumer & corporate communications at Wakefern. we know who she is, how she Our Questions: prefers to shop and what she purchases. We must continue to 1. What has your company done over the past 12 months to upgrade your digital/online offering? use those insights to our advan- What further enhancements are you considering for 2019? tage as we innovate and create, 2. With a new House of Representatives coming on board this year, as well as many state and local across all phases of the shopping offices changing, what do you consider the major legislative issues that could affect your business experience: before they enter (i.e., potentially increased minimum wage, the new farm bill)? our store, while they’re shopping 3. Another link to legislation involves food safety. With a record number of product recalls last year, and after the leave. what measures has your company taken to minimize the impact of food safety related issues (i.e., The good news is, we’ve al- better communications with suppliers, traceability initiatives, etc.)? ready been doing this. For ex- 4. Overstoring and diversification of retail operating styles (including new and emerging channels) have Nicholas Bertram ample, we’ve seen great results created tremendous pressure on all retailers. What is your company doing to create differentiation whenever we add beer and wine to enhance the customer shopping experience in your stores? been SQF (Safe Quality Food) eateries in our Pennsylvania certified since 2016. A food safe- stores. In 2018, we added 33 ty management certification sys- beer and wine eateries to our Nicholas Bertram of Digital Labs as well For more than 95 years, the tem, created and managed by the store base. Our customers really President, Giant/Martin’s as the expertise GIANT will be GIANT team has prided itself SQF Institute, it is used to con- appreciate the availability of beer able to draw upon and we work on providing safe and nutritious 1. For GIANT, driving digital trol food safety risks and once and wine in our stores, so it’s a to enhance and expand our digi- food to our customers and com- and e-commerce innovation and implemented is audited and cer- program we’ll continue drive in tal platforms. munities. This is only achieved leveraging technology to create tified annually by a third-party. the year ahead. Similar success by working closely with our an outstanding customer experi- It’s worth noting that GIANT’s was seen in both e-commerce 2. ence, regardless of when, where It’s no secret that all levels supplier partners, government commitment to food safety is delivery as we’ve added new zip and how consumers choose to of government, from the feder- agencies and the diligence of also central to our efforts to codes to the service and as we’ve shop is critical as we look to al level to the local municipali- our entire GIANT team, espe- fight hunger. Through our -US expanded our immunization 2019 and beyond. ties our stores serve, impact our cially those on the front lines in DA-approved “Meat the Needs” program at our more than 130 Last year, GIANT saw re- business. In any given month, our stores. Every day, our entire program, our stores safely freeze pharmacies, with both programs cord-breaking engagement there are numerous pieces of team works together to make and donate meat that is pulled delivering record-breaking re- across our digital, mobile and legislation proposed and passed sure the products we carry in from sale, a day before its sell- sults last year. social platforms, and that’s that affect our business, so nat- our stores exceed our standards by date. This product is safe, Keeping our customer-centric something we’re very proud of urally we stay close to the issues so that our customers can pur- consumable food that GIANT mindset, very shortly, we’ll open – and it motivates us to be even that impact our operations, our chase anything with confidence. would be just as proud to sell to the very first GIANT Heirloom more aggressive as we head into associates and our customers. To support our commitment customers, but rather than end- Market, our new urban store 2019. Further, we truly believe that to food safety, our company ing up in landfills, it is helping format in the Graduate Hospital As more and more consumers by forging relationships with operates under stringent food regional food banks feed those neighborhood of Philadelphia. look for ways to make everyday decision makers and by engag- safety guidelines, including the most in need. From the moment This store is unique to this zip tasks like grocery shopping eas- ing in regular conversations, we implementation of preventative the meat is removed from the code, as it was designed with ier, they’re turning to digital and will have a seat at the table and measures and training to ensure sales floor to its delivery to one feedback by people who live, mobile solutions….and that’s ensure the voice of GIANT is our associates are following the of our partner food banks, we work and grocery shop in that why we’re going to continue to heard. most current food handling and can say with confidence that the neighborhood. We’re thrilled invest in and develop our digi- We were pleased with the re- food safety guidelines. cold chain has been preserved to be able to open the doors tal, mobile and social strategies. cent passing of the Farm Bill, as Our stores receive quarterly and that the food is safe for con- and have them experience their This year, look for GIANT to it contains numerous provisions food safety evaluations/inspec- sumption. And that’s critical brand-new store, rooted in the do more on these fronts as we that position our business part- tions by dedicated internal food with the volume of protein we’ve very best of the GIANT brand. aggressively pursue our vision ners – farmers and food pur- safety professionals to further donated through this program – Our customers have told us it’s of becoming a first-class om- veyors – for future success. As a reinforce our commitment to more than 3.9 million pounds in important to keep things “fresh” ni-channel grocery retailer. We’ll retailer who depends heavily on rigorous food safety practic- 2017 alone. and they want us to introduce do this through a chainwide de- the agriculture industry, this bill es. All store management team them to new products. So we ployment of robotics, a Deli Or- is serious, and we look forward members and our department 4. Our industry is more com- will by continuing to introduce der Ahead pilot, enhancements to it moving into law. managers maintain Food Safety petitive than ever before and I new offerings to our in-store to our mobile app and more. Protection Manager Certifica- don’t see that changing anytime assortment, specifically in our Lastly, our great partner, 3. Food safety has long been a tion through an ANSI (Amer- soon. It’s up to us to deliver a deli and hot bar categories. We’ll Peapod Digital Labs, will help top priority for GIANT, so much ican National Standards Insti- shopping environment and cus- also continue developing unique us build on the foundational so that it’s part of our company’s tute) accredited training course tomer experience that differenti- relationships with our supplier work we’ve already done in this core values; after all, our name and exam. Currently, over 1,800 ates GIANT from others in our partners, offering our custom- area. PDL is an innovation hub is on the line. From our ware- associates maintain the certifica- space. It’s a challenge our team is ers exclusive, in-store access to that will help us accelerate our house and support office to our tion throughout the distribution more than up for, and something high-quality products we know growth in digital and personal- stores, food safety is always on centers, support offices and re- we’ve been working on actively they’ll love. Our relationship ization capabilities. I’m extreme- our mind, but this isn’t anything tail stores. In addition, our Per- for some time. And we’re seeing ly excited about the capabilities new. ishable Distribution Center has the fruit of our efforts. See OUTLOOK on page 16

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www.best-met.com January 2019 FOOD TRADE NEWS | 15 OUTLOOK 2019

From page 14 licenses,” to date, the number is nity resources and job opportu- still limited for those retail out- nities. Losses at the ShopRite of with Caputo Brothers Cream- lets that can sell beer or wine. Haverford over the two years the ery, a Spring Grove, Pennsylva- Those retailers without that abil- tax has been in place recently led nia-based company that produc- ity to do so will be forced to find to the very difficult decision to es handcrafted, authentic Italian other ways to remain competi- close that store. We also monitor cheeses – is one such example. tive in the markets. I see this seg- We’ve had tremendous success and track a variety of legislative ment of the business continuing with their fresh pulled mozza- issues that affect our business, to grow in our market and con- rella in our stores and we look including the many different tinuing to impact our ability to forward to growing that partner- local and state proposals and satisfy our customers. ship in 2019. new laws governing plastic bag In addition, the pending leg- Lastly, in the year ahead, we’ll use, as well as minimum wage islation of increasing the mini- work toward integrating all of proposals and federal proposed mum wage could have a major our channels. By delivering a rules on GMO labeling. All of impact on retailers’ ability to sat- seamless, omni-channel experi- Jim Kidwell Karen Meleta these impact our industry and isfy consumers’ desire for good ence to our customers, we’ll po- remain major legislative issues customer service in-store. While sition GIANT as the clear choice calls or alerts continues to be a for supermarkets in 2019. I completely agree that the min- thing to everybody and it is a for their grocery needs. huge focus as well as our com- daily grind to continue to focus imum wage is overdue to be in- munication with our customers 3. Food safety is our number creased, the proposed jump to on what we do well and what Jim Kidwell about these concerns. When we makes our customers happy. To one priority and we have very $12 and then to $15 is too much receive information, the prod- stringent protocols in place. That Director, Marketing/ too fast. Many retailers in our remain successful, we must fo- Advertising/Buying ucts are immediately pulled cus on what we do well and why said, we are increasing our level market have already made the from our stores and handled as of oversight on suppliers of leafy Family Owned Markets change to $10-plus to prepare our customers enjoy shopping in we are instructed to do. Notices our stores. greens and reviewing the feasi- 1. At the Family Owned Mar- for this potential change. are also posted in our stores as bility of implementing a trace- kets stores it is a constant pro- To me the area that could suf- soon as the information is re- ability system to better track fer greatly as a result of a signifi- Karen Meleta cess to try to improve this area ceived so our customers know product through our supply cantly increased minimum wage Vice President, Consumer & for our consumers. During 2018 that we have handled the situa- and distribution chains. We also would be customer service, and Corporate Communications we changed and upgraded our tion to provide them the needed work closely with trade organi- I think it will affect all types of Wakefern register systems to a system safety as well. zations such as the Food Mar- businesses. Companies will be that enables us to improve our 1. Over the last year, the keting Institute and government forced to reduce their numbers marketing to our consumers via 4. The number of grocery ShopRite team added new func- agencies like the FDA to make of staff which will limit the abil- our Gold Shoppers Card. It also stores as well as the number of tionality and refreshed the look sure we have the latest informa- ity for quality customer service. upgrades our ability to directly other types of retail outlets sell- of both the website and our tion on consumer advisories and market to our consumers based We are already stretched thin ing food continues to change on ShopRite app to create a more public health to minimize any on their purchase interests. This with being able to find the qual- a daily basis. We are seeing more seamless online shopping expe- potential impact on our custom- new register system will enable ity help that we need. With the rience. A new design and better and more competition from ers. us to kick off an improvement to expanded needs in the areas of more and more outlets - from interface for the ShopRite App our digital coupon offerings and food safety, home delivery and makes it even easier for custom- club stores to mass merchandis- 4. We continue to focus on increase the number of offerings in-store pick up, my fear is that ers such as Target and , ers to make an in-store list, load bringing unique, high-quality to our consumers. Our upgrade customer service will be the area to drug stores selling food and digital coupons and use the on- private label products to mar- to our weekly ENEWS now in- that will suffer as the wages in- even produce, to dollar stores line grocery service, ShopRite ket like our Wholesome Pantry cludes a link to our ad, weekly crease and we are forced to re- being built everywhere. Add from Home. Other new features recipe features, and weekly fea- duce man hours. that to convenience stores mul- include a digital receipts portal store brand, a hugely successful ture specials. tiplying faster than it is possible and the ability to set up remind- line of foods made with simple, 3. Food safety is a major factor to track makes it very difficult to ers for shopping lists. Customers clean ingredients. In 2018, we 2. Continuing from 2018 and in the grocery business today. maintain growth in the grocery can expect more enhancements launched our latest store brand, into 2019 there are two major With the demand for ready-to- business. to the website and the app as we ShopRite Trading Company, a developments that have either eat or heat-and-eat foods ex- We are trying to focus on the continue to improve the digital new private label line of premi- changed or could change the ploding and growing daily, the desires and wants of our cus- shopping experience. um artisanal foods inspired by grocery industry. The change in demand for food safety contin- tomers in our stores and focus a variety of world cuisines. We the state of Pennsylvania allow- ues to explode along with it. We on their needs. As independent 2. Concern continues over the also continue to invest in train- ing beer and wine sales in gro- continue to maintain and train retailers we do not have the fi- beverage tax in Philadelphia. ing and education for our store cery and convenience stores has all employees handling prepared nancial resources that the large The 1.5 cents per ounce tax – associates, and we are especially completely turned the industry foods to ensure we provide a safe chains and retailers have. This one of the highest in the nation – proud of our team of registered upside down. From what I am environment for our customers forces us to have to be more in is hurting low-income residents dietitians. More than 100 dieti- reading about it, it has been a and for the employees who are touch with our customers and in the city and our ability to tians serve over 140 ShopRite plus to both the beer and wine handling this product. know why they shop in our successfully operate supermar- stores, helping customers and industries. While the state con- Communication with our stores and what they expect kets that provide city residents associates develop more healthy tinues to release and sell “dead food suppliers about issues, re- from us. We cannot be every- access to fresh foods, commu- lifestyles.

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www.best-met.com January 2019 FOOD TRADE NEWS | 17 Bargain Market Announces MacGregor Read As Vice Chair, Eric Lindberg As CEO Grocery Outlet Bargain Mar- ket this month announced that its board of directors has ap- pointed Eric Lindberg to chief executive officer and MacGre- gor Read to vice chairman. Lindberg and Read previously held the position of Co-CEOs. The Emeryville, CA based extreme-value grocery retailer, operates 19 stores in Pennsyl- vania that rang up an estimated $122.80 million in the June 2018 Food Trade News market study. Grocery Outlet entered Penn- Eric Lindberg MacGregor Read Pamela Burke RJ Sheedy sylvania in 2011 with its pur- chase of Amelia’s Grocery Out- ry of bringing extreme value to tail merchandising, real estate value to our customers and sup- ply chain. Current executive let, based in New Holland, PA. customers and building trusted and construction before being port our growth.” vice president of legal, HR and Lindberg joined Grocery partnerships with suppliers, and named Co-CEO with Lindberg In addition, Grocery Outlet general counsel Pamela Burke Outlet Bargain Market in 1996 I look forward to building on in 2006. Bargain Market announced two joined Grocery Outlet in 2015 and began his tenure in opera- our momentum and delivering “Our sourcing strategy and executive promotions. Current will assume the role of chief ad- tions before advancing through value for our customers.” relationships with our suppliers chief merchandise, marketing ministrative officer overseeing positions in retail marketing Read joined Grocery Outlet are key business differentiators and strategy officer RJ Sheedy legal, risk, internal audit, safety and procurement. Bargain Market in 1996 after about which I am passionate,” joined Grocery Outlet in 2012 and human resources. “I am excited to lead Gro- multiple years in the food in- said Read. “I am looking for- and will assume the position Each announced title change cery Outlet into the future and dustry. He advanced through ward to focusing on strength- of president of Grocery Outlet and related responsibilities offi- develop new opportunities for several internal positions over ening and building new supplier Bargain Market. He will over- cially went into effect on Janu- growth,” said Lindberg. “Gro- 22 years with Grocery Outlet opportunities and relationships see purchasing, planning, mar- ary 1, 2019. cery Outlet has a 68-year histo- including procurement, re- to continue to bring extreme keting, strategy, IT and sup-

Ahold Delhaize’s Stop & Shop Unit Sees Advertise with us online Opportunity In Buying Struggling King Kullen and hit your target. vice in the region.” expansion on Long Island From page 1 Reportedly, King Kullen is- came in 1995 when the com- It’s that simple. “King Kullen is a well-re- sued a financial prospectus in pany purchased 17 MelMarket spected grocery chain in the the past 12 months in which Foodtowns from Mel Weitz Long Island market that has an it sought to explore its future and the acquisition imme- 88-year tradition of excellent options. Trade analysts have diately gave the merchant a customer service,” said Mark observed that the company strong foothold in the area. has struggled over the past five McGowan, president of Stop That same year, King Kul- years with increased competi- & Shop. “We look forward to len opened its first Wild by tion, not only from the super- bringing our quality, selection Nature natural and organics market segment (particularly and value to more commu- store in East Setauket, NY (a ShopRite), but also from the nities in Nassau and Suffolk former King Kullen unit). A impact of other trade chan- year later, Amsterdam-based counties.” nels. The lack of new stores Royal Ahold acquired Stop & “In 1930, Michael J. Cullen and a seemingly limited cap- Shop and within the next few opened the first King Kullen ex budget to remodel others and ushered in the era of the months converted its remain- Contact Karen Fernandez has also impacted the Cullen great American supermarket,” family’s operation. ing Edwards division ban- [email protected] said Brian Cullen, co-presi- In 2013, King Kullen ranked nered stores on Long Island to dent of King Kullen, who leads second among all retailers on the Stop & Shop banner. 443.765.1575 the company with his cousin J. Long Island when it operated Moreover, this hasn’t been Donald Kennedy. “As a fami- 42 stores, good for an estimat- the first occasion that Stop & ly-owned and operated busi- ed 8.4 percent of the market. Shop and King Kullen have ness, we are very proud of our Just two months ago, an- structured a deal. In 2011, Stop heritage and extremely grate- other family-owned Long & Shop acquired three King ful to all of our associates and Island-based regional chain – Kullen locations on Staten Is- customers for their support Best Markets – sold 27 of its land, as King Kullen retreated over the years. We are confi- stores to German discounter from the boroughs of New dent the Stop & Shop brand . York City and focused solely will carry on our legacy of ser- Stop & Shop’s first major on its Long Island business.

18 | FOOD TRADE NEWS January 2019 www.best-met.com OUR MISSION is clear,.

TO EMPOWER independent grocery retailers, providing the tools they need to succeed as entrepreneurs, and serve and support their customers and communities. #WeAreKrasdale

Contact Dennis Wallin EVP, Business Development 800.248.5727 x5301

www.best-met.com January 2019 FOOD TRADE NEWS | 19 Legislative Line It’s A Whole New Ball Game The 116th Congress convened emerged was a bill that avoid- encourages SNAP recipients to foods. It IS going to be the “food this month and it was quite an ed any major changes to SNAP. buy more produce, and opens of the future” without doubt, so opening day with many new However, regarding the work re- the program to retailers. Re- please don’t turn an upper-lip members of the House and Sen- quirements, I noted with inter- tailers were also able to derail and mumble “this isn’t going to ate. In addition, this first month est an editorial in the December discussions of limiting food work!” As I’ve said previously, of the New Year brings with it 10 issue of the Wall Street Jour- choices of SNAP recipients and the first step with this emerging the annual State of the Union nal that cited the biggest fail- USDA’s proposal to convert 40 new, fascinating technology is address by the president. New ure of the GOP lead Congress percent of the SNAP program the question of who will regulate members who are all eager to was its abandonment of work into a government-run Harvest the technology. USDA and the promote their own agendas incentives in welfare reform of Food Box distribution program. FDA finally reached agreement coupled with a “new” mid-term the farm bill. The editorial stat- The one negative for retailers is on how they will regulate the White House agenda will bring ed: “..the Republican Congress that the legislation does not pro- rapidly developing lab-grown with it a lot of (you fill in this is going out with a whimper, tect store level SNAP redemp- or cell-cultured food industry. blank)! which is a particular shame be- tion data from being publicly FDA will oversee cell selection A bit of history for you policy cause this is the last chance for disclosed. and growth and USDA will take wonks: The Republicans main- pro-growth government reform Barry F. Scher over during the harvesting stage GMO Labeling Rule tained a Senate majority fol- for many years.” Policy Solutions LLC and continue to regulate the lowing the mid-terms defeating With all that said, some states Just days prior to the Christ- new products through produc- Democratic incumbents in four still want to issue their own mas Congressional holiday the tion and labeling. Most of the states (Florida, Indiana, Mis- work-related waivers for food early on in this new year. GMO labeling rule was officially stakeholders in the issue felt that souri and North Dakota). Dem- stamp recipients. Not so fast! Agriculture Secretary Sonny released. After USDA unveiled the announced approach was a ocrats defeated a Republican in- While tougher work require- Perdue said the proposed work the long-awaited rule food com- good compromise, but live- cumbent in Nevada and gained ments are not in the new farm rule would appeal to conser- panies and agriculture groups stock groups continue to push an open seat in Arizona. This bill, another way for Trump to vative lawmakers who are not quickly praised the agency for for USDA to take the lead role. was only the fourth time since try to get his way for stricter happy that the House Repub- delivering on guidelines that The latter are very close to the WWII that a president’s party work rules is through the ad- licans failed in their attempt to create a uniform national stan- chairmen of the House and Sen- made Senate gains in a midterm ministrative process. So just enact mandatory, stronger work dard mandating the disclosure ate Agriculture Appropriations election. In the House, Dems days before the Christmas hol- requirements for millions of of genetically modified ingredi- Committees, who may eventu- won control with a gain net total iday, our “gotcha” president an- food stamp recipients. USDA ents in food. The rule does not ally have the final word on the of 40 seats, 17 more than the 23 nounced a plan to require that has been searching for ways to mandate the labeling of “highly new regulatory policy. seats they needed to win control food stamp recipients hold jobs crack down on some 36 states refined ingredients” from GMO of the House. Now let’s look at if they want to keep receiving that currently waive at least part crops as requested by food com- Happy New Year our food industry’s most im- SNAP benefits. of their food stamp populations panies. It has been an awfully Finally, a happy and healthy portant issue that was resolved Understand that the SNAP from the existing three-month long road to travel I might add. New Year to all my readers. I en- late last month just days before program currently mandates limit for able-bodied adults The final rule also says that com- joy hearing from you so if there Congress adjourned for the hol- most adults without dependents without dependents to receive panies can disclose the presence are any issues you would like to idays. to work if they collect food benefits within a three-year pe- of GMOs via a designated sym- know more about, drop me an stamp benefits for more than riod if they’re not working at bol or include a QR code, or e-mail. Now that we are in the Farm Bill three months in a three-year least 80 hours a month. Yes, the use the term “bio-engineered,” midst of the final two-year term In the waning days of the period. But USDA, the agency farm bill has passed but the dev- which USDA says aligns more of the Trump administration, it 115th Congress, a new five-year which regulates SNAP, allows il may still be in the details. closely to what the law dictates is going to be one heck of a roll- farm bill was finally agreed upon states to waive the requirement than “genetically modified or- er coaster ride (as if it has not and sent to the president for his in areas with unemployment Farm Bill Retailer Highlights ganism.” January 2022 is the already been just that). By early signature. Let there be no doubt, rates that are at least 20 percent This proposed new rule final compliance date. Also oc- fall we should definitely know this massive piece of legislation greater than the national aver- should be the final chapter in curring days before Christmas who the front-runner is going will impact the food industry in age. But, USDA is now propos- the fight over tightening work was FDA’s release of the final to be to challenge the current a number of ways, literally from ing that states could waive the requirements for SNAP recip- rule establishing the new Nutri- president. There are about two “farm to fork” with an estimated requirement only in areas where ients, which food retailers op- tion Facts panel that I’ve previ- dozen potential candidates in price tag of $867 billion over the unemployment is above 7 per- pose because they will reduce ously written about. Interesting the running now but before you next 10 years. cent. This measure could pro- benefits to SNAP households. enough both rules were released know it, the race for the White The major farm bill debate as duce savings of $15 billion over So, we will have to stay tuned to just prior to the Christmas holi- House will begin in earnest. far as our food industry was con- 10 years. This new proposed see how the proposed rule plays day period when the public and cerned was over food stamps. rule will soon be published in out. However, the signed legis- the press were not as focused as Barry Scher is associated with House Republicans pushed hard the Federal Register and then lation prohibits credit card net- they would have been after the the public policy firm of Poli- for much stricter work require- there is a public comment peri- works that process EBT cards holidays. Oh well, that’s politics! cy Solutions LLC and may be ments, tighter eligibility stan- od of 60 days. So, the “fat lady” from charging processing fees reached atBscher@policy-solu- dards and stricter language to has not sung yet as Congressio- to retailers. In addition, it makes Lab-Grown Or Cell-Cultured tions.net rein in state waivers for exist- nal Democrats are adamantly permanent the Food Insecuri- Foods saying they are against the pro- ing SNAP work requirements ty Nutrition Incentive (FINI) I’ve written a lot in the past posed rule! This issue will con- for able-bodied adults without program, otherwise known as few months about lab-grown dependents. In the end, what tinue to be a hot-button topic Double UP Food Bucks, which

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www.best-met.com January 2019 FOOD TRADE NEWS | 21 ssssssssssssssssssssssssssssss TAKING STOCK From page 12 Sprouts To Debut In Marlton, NJ As One Of Nine New Stores To Open In Q2 earlier this month announced nine new stores scheduled to open in the second quarter of 2019, including two in the North- east. The locations include the healthy grocer’s entry into four new markets: New Jersey, Maryland, Virginia and Louisiana. Four stores will feature an enhanced layout that caters to the latest shopper trends through optimized customer en- gagement. The healthy grocer plans to open approximately 30 stores in 2019. The new stores in the Northeast will be in Herndon, VA (494 Elden Street) and Marlton, NJ (237 Route 73 South). In addition to the new states it is enter- ing, two additional Sprouts will open in Florida (Jacksonville and Oviedo), one in Arizona (Mesa) and three in California (Los Angeles, San Jose and San Luis Obispo), all states where the retailer currently operates. THE AMERICAN HUMANE ASSOCIATION (AHA), HEADQUARTERED IN WASHINGTON DC, RECENTLY Currently, the Phoenix, AZ based healthy grocer operates 300 stores in 19 invited Kreider Farms to participate in a Congressional briefing on “The Humane Table.” They were joined states. During 2018, Sprouts entered three new states — Pennsylvania (where on Capitol Hill by farmers, ranchers, and producers to urge all Americans to set a humane table and to its Philadelphia store is reportedly the highest volume unit in the chain), Wash- support humanely raised products. Speakers included (l-r) Bart Vittori, Coleman Natural Foods; Byron Shaf- ington and South Carolina fer, Kreider Farms; Dr. Robin Ganzert and Marty Funkhouser, AHA; Dr. Alice Johnson, Butterball LLC; Dawn Assenzio, AHA board member; and Patrick Bane, America’s Pig Farmer of the Year. The Jacksonville, Los Angeles, Oviedo and San Luis Obispo stores will fea- ture Sprouts’ newest operational and design enhancements that highlight de- partment destinations and promote customer engagement throughout the store. The design, which maintains center-store focus on produce, debuted last year LETTER TO THE EDITOR: in five locations. Dear Editor: tional contracts and introducing national infrastructure for the I read with interest the piece new items. At the same time, past five years. We have collab- ‘Round The Trade in Jeff Metzger’s “Taking Stock” we have incurred substantial orated and successfully brought Albertsons is making progress in its effort to grow sales and reduce its column about Acosta and other increases in wages, insurance, to market brands like Chobani, giant debt load. The Boise, ID-merchant, the nation’s second largest pure-play large brokerage firms that ap- travel, expenses and compliance. Stonyfield, Kind Bar, RX Bar, supermarket chain, saw overall sales increase 1.8 percent in its recently ended peared in the December issue of My message is simple: let’s Halo Top to name a few. We have third quarter. Earnings also bounced back from the previous period’s $32.4 Food Trade News. I had a few ob- not cast a shadow across the worked side by side with brands million loss; this quarter’s profit was $45.6 million, ID sales grew 1.9 percent servations after digesting it. broker industry because five like Fisher Nuts and provided and Albertsons’ e-commerce business grew 73 percent year-over-year. Late last There is a lot of news circu- brokers have bit the “outside new energy and the success of year Albertsons refinanced its primary term loan and paid off some debt. Addi- lating about Acosta’s and Cross- equity” apple. Even Moody’s once again being #1. We did this tionally, it raised $600 million through the sale and subsequent leaseback of mark’s Moody rating of Caa2 acknowledged in their ratings because we found the best peo- five distribution centers. and Caa3 as well as Advantages the efficiencies brokers provide. ple in the industry who wanted “We continue to gain traction in our efforts to deliver a seamless shopping filing for an IPO back in 2017. It would be financially impos- to make a difference, those who experience for our customers in both the four-wall and no-wall environment. The This is certainly something that sible for most clients to call on love this industry and work hard third quarter marked our strongest identical-sales increase since the first quar- ter of fiscal 2016. Identical sales grew for the fourth consecutive quarter, and our entire industry is talking a fraction of the 120 retailers every day. There are six brokers adjusted EBITDA grew over 50 percent compared to the same quarter last year, about and I hope that at the same across the U.S. and provide the today with some claim of a na- as the business has rebounded from fiscal 2017. We achieved a record-high time the industry is also think- endless administration, catego- tional footprint and while the sales penetration rate on our Own Brands products as we continue to delight ing about the high value added ry leadership and other services other five chose outside equity, our customers with our portfolio of award-winning brands,” said industry veteran and roles that brokers play for that Alliance provides today. It we chose a path to be in control Jim Donald, who was named Albertsons CEO in August. Donald has a daunting manufacturers and retailers. takes years to learn markets and of our future. We have created task ahead of him as he tries to either take the company public or find another Brokers need to be recognized retailers and be dialed into both. a foundation that is debt free partner to merge with after a proposed union with Rite Aid collapsed last sum- for all they do and their impor- I can attest from my 20 years and with a succession plan that mer. And despite the positive financial results and the paring of about $1 billion tance to the industry. Over the on the manufacturing side, you does not include selling out. in debt, Albertsons’ debt load still stands at $10.6 billion….Target is shaking years I have read several articles don’t become a market and re- We took the path that had early things up a bit and has promoted Stephanie Lundquist to president of its food about the rising cost for retailers tailer expert from a few calls a challenges so that our Alliance and beverage unit, a new post. Lundquist has been with the Minneapolis mass and manufacturers all of which year although I naively thought family members would one day merchant since 2005 and most recently served as chief HR officer. In her new are true. As many, not all, re- I was wired. There is so much not have to endure the uncer- role, she’ll oversee all food and beverage merchandising including strategy de- tailers and manufacturers have turnover and transition these tainty of changing headwinds velopment and implementation. She’ll be a busy bee, because even with slight improvements made over the last 12 months, because Target really needs help added third-party systems and days with both manufacturers by investors. I am proud of the when it comes to its approach toward and presentation of grocery…interesting at the same time reduced their and retailers that “the broker” is broker industry and hopefully, presentation by chief executive Rodney McMullen at this month’s Nation- headcount. It should not be a perhaps the one constant. I feel our industry can now somehow al Retail Federation (NRF) show in NYC. McMullen was bullish about his com- surprise to anyone that because 100 percent confident that with- realize that brokers are perhaps pany’s effort to utilize both backroom and consumer-driven digital initiatives. He of this, brokers have absorbed out brokers, the task and cost the best return on investment in added that as consumer demographics and habits shift, Kroger is more willing more cost and workload to keep of business transactions would the industry. to experiment with different approaches and partnerships such as the recent ini- things running. Today, we are soar and we would all lose, in- Let’s keep our industry strong. tiatives announced with Walgreens (grocery pickup depots at 13 Walgreens drug paying for the “cost” to subscribe cluding the ultimate customer, Scott Anderson stores) and Microsoft (to market a commercial ‘Retail as a Service” connected to the third-party systems which the consumer. store experience). McMullen also painted an accurate picture of the mindset of th CEO/Owner has increased our headcount As we celebrate our 15 Alliance Sales and Marketing and create additional expense in anniversary, we are proud to Charlotte, NC TAKING STOCK continues on page 27 such areas as submitting promo- have enjoyed the benefits of a

22 | FOOD TRADE NEWS January 2019 www.best-met.com Good tidings. Good partners.

When you have a loyal partner by your side, the possibilities are endless. For over 70 years, Bozzuto’s has delivered quality products throughout all kinds of winter weather. With innovative solutions, state-of-the-art distribution centers and locally grown products, Bozzuto’s offers consistently high-quality service, allowing our customers to relax and enjoy a stress-free season.

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boz_37198_09_TradePrintAd_Holiday_10x10p5_m.indd 1 12/6/18 3:58 PM www.best-met.com January 2019 FOOD TRADE NEWS | 23 ssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss PEOPLE seamless transition. Clouse also partnering with the board and has been elected a director. working alongside the compa- Clouse brings more than 20 ny’s many talented employees years of experience in the food to deliver sustainable, long-term industry, holding senior man- growth. I am confident that to- agement positions at leading gether we can build a prosper- companies with iconic cen- ous future for Campbell and all ter-store brands, including of its stakeholders.” Mondelēz International, Inc., During Clouse’s two-and- Kraft Foods Inc. and Pinnacle a-half-year tenure as CEO of Foods. Throughout his career, Pinnacle Foods, Pinnacle con- Clouse has consistently demon- sistently grew or maintained strated an ability to enhance market share in each of its growth and create shareholder top categories, delivered dou- value through investments in a ble-digit adjusted EPS growth, company’s existing brands and and successfully integrated the through acquisitions. Boulder Brands acquisition Rebecca Lupfer Laura Strange Mark A. Clouse “Mark Clouse is an outstand- creating significant shareholder ing leader with a proven track value. USA merchandising team as Member of Congress. Her ded- From page 10 ication to our industry, along record of operational excellence, Clouse joined Pinnacle Foods portfolio lead, seasonal mer- and we are excited to name him from Mondelēz International, with all OSMG partners: JOH, chandising, a position she held with her communications ex- pertise have prepared her well as Campbell’s next President where he served as chief com- SellEthics, Schraad, Mancini, until being named to her cur- and CEO,” said Les Vinney, mercial officer and chief growth and HS&R, as well as the com- rent role in January of this year. for this new role at NGA,” said Peter Larkin, president and chairman of the board. “Mark’s officer, with responsibility for pany’s Kroger and Walmart Lupfer received a bachelor leadership as CEO of Pinnacle the company’s growth strate- teams. of science in accounting from CEO. “Laura’s passion and commit- Foods shows a clear track record gy and key functions includ- Penn State and a master of busi- of delivering solid revenue and ing corporate strategy, global Giant/Carlisle late last month ness administration from Leba- ment to our members, coupled with her industry knowledge, earnings growth and generat- marketing, global sales, and announced the promotion of non Valley College. She resides ing significant value for share- research, development and Rebecca Lupfer, who currently in Shermans Dale, PA with her makes her the perfect person to take on responsibility for over- holders. Over the last several quality. Throughout his 20-year serves as director of merchan- family. months, the Campbell Board tenure at Kraft, Clouse served dise planning, to vice president seeing NGA’s continued mem- bership growth. Laura will help conducted a thorough search in a range of leadership posi- of center store. In her new role, The National Grocers Asso- process, and we are confident tions managing food brands in she will be responsible for man- ciation (NGA) has announced NGA continue its strong repre- sentation, ensuring the 21,000 that Mark is the right person to developed markets and entre- aging and developing the mer- that Laura Strange has been continue our turnaround plan preneurial global businesses in chandising strategy for the dairy, appointed to the position of se- independent supermarkets across the country have an ad- and lead Campbell to future emerging markets such as Brazil grocery, general merchandise/ nior vice president of communi- growth. He brings a wealth of and China. health and beauty care, frozen cations and external affairs. She vocate looking out for their best interest,” said Greg Ferrara, ex- experience in the food indus- Prior to joining Kraft, Clouse and non-foods departments. previously served as vice presi- try, as well as a fresh perspec- served in the United States She will report to John Ruane, dent of industry relations, mar- ecutive vice president. Strange joined NGA in No- tive on the opportunities and Army as a pilot and completed senior vice president and chief keting and communications. challenges before us. Mark was his service as a Captain. Clouse merchandising officer for Giant/ In this expanded role Strange vember 2013 as director of com- munications, having previously the board’s top choice due to his is a graduate of the U.S. Mili- Martin’s. will continue to oversee the in- success leading organizations tary Academy at West Point and “Rebecca is extremely accom- dustry relations, marketing and worked as a communications director for a member of Con- through significant transforma- holds a bachelor of science in plished and brings a tremen- communications departments, tions and his history of deliver- economics. dous amount of knowledge and while taking on new responsi- gress and in political affairs for a Fortune 500 company. She ing strong results. We are eager Vinney added, “I want to experience in multiple areas of bilities within retail and whole- to begin working with him as we thank Keith McLoughlin for the business to her new role,” sale membership. holds a BA from the University of South Carolina and Master’s continue to build a stronger and his service as Campbell’s inter- said Ruane. “Rebecca is also “For the past five years Laura more focused Campbell.” im CEO during this important a dedicated mentor, coaching has developed the communica- in strategic public relations from George Washington University. Consistent with the terms of time. Under Keith’s steady lead- other associates throughout the tions and marketing functions the settlement agreement be- ership, we have made signifi- organization who want to devel- within NGA into a well-func- Campbell Soup Company last tween Third Point and Camp- cant progress in focusing the op their skills and grow their ca- tioning unit that succeeded in bell, Third Point provided con- company, increasing operation- reers. She will be a valuable asset growing numerous events, in- month announced that its board of directors has elected Mark structive input into the CEO al discipline and executing our to our leadership team and help cluding The NGA Show, while search process and fully sup- plans to improve performance. set the stage for our company’s also significantly increasing the A. Clouse, 50, as president and CEO of Campbell effective Jan- ports the Campbell Board’s de- The Campbell turnaround has continued growth.” profile of the association and cision to name Clouse president begun, and the company stands Lupfer began her career as a independent supermarket in- uary 22, 2019. Clouse, who pre- viously served as CEO of Pin- and CEO. well positioned for success as business process analyst with dustry within in national and “I am honored to lead Camp- Mark steps into the CEO role. Ahold Financial Services in trade industry media. She has nacle Foods, Inc., will succeed Campbell’s interim president bell and its portfolio of iconic I look forward to continuing 2005 and held roles of increas- also played a key role in help- brands into the next chapter of to work with Keith as an active ing responsibility, ultimately be- ing to advance NGA’s legislative and CEO Keith McLoughlin, who will remain a director of the company’s storied history,” member of Campbell’s board.” coming the director of internal and grassroots priorities, guided said Clouse. “I am committed to audit, professional practices. In by her previous experience as a the company and will work See PEOPLE closely with Clouse to ensure a delivering Campbell’s strategic 2016, Lupfer joined the Ahold communications director for a objectives and look forward to on page 26

24 | FOOD TRADE NEWS January 2019 www.best-met.com Coming Soon in 2019!

New Exciting Changes - Stay Tuned! #bestmetisgettingevenbetter

www.best-met.com January 2019 FOOD TRADE NEWS | 25 Our Year In Review Not much in Trenton surpris- statewide solution to tackle gram, and growth of our ed in his family living room 50 es me but occasionally the unex- single use bag usage by im- leadership development years ago by his father, one of pected arises that has an impact posing a five cent fee on dis- effort to mentor our fu- our founders and first chairman, on our membership and case in posable plastic and paper ture industry profession- Joe Saker. point were two significant is- bags. The bill moved swiftly als. We also anticipate a hectic sues we faced heading into the and passed both houses of In 2018, we experi- legislative calendar as minimum year. When we started 2018, we the state legislature, but the enced our largest support wage, disposable bag proposals, were sure that the new Murphy Murphy administration de- of our sponsorship pro- New Jersey food code revisions administration would seek im- cided not to fully endorse gram since its inception and the election cycle for the mediate passage on a campaign the bill which was the most and every major event general assembly will take center promise to raise the minimum reasonable solution to de- reached beyond our bud- stage. wage to $15 an hour without ex- fining an effective solid geted expectations. Our As we head into 2019, it is with emptions. Members braced for waste program and would member support contin- great pride, determination and the catastrophic impact of such have positioned New Jersey ues to ignite the engine effort by our team of officers, a proposal. The administration to have the most effective By Linda Doherty, President for NJFC to serve as an members, supporters, sponsors pushed hard but legislative lead- plastic bag program in the effective industry advo- and staff that we confront a new ership took a measured approach nation. cate. set of challenges and opportuni- and did not act on moving legis- Clearly, the inaction on As we face 2019, we ties. We approach the year with lation that members were antic- both public policy issues in 2018 to weights and measures en- have great hope for the future extraordinary enthusiasm, clear ipating in this new progressive was unexpected with each pro- forcement, further advancement as we anticipate the celebration direction and our full effort to political landscape. Even at this posal having its own unique set of our Jersey Votes campaign, of our 50th anniversary. What create value and predictability early 2019 publication, a deal to of implications. NJFC will con- a state grant award of $180,000 makes it so special is that our for the New Jersey food industry raise the wage immediately is tinue to engage as these two sig- to continue our support of the steadfast and dynamic chairman and hope for a productive and still uncertain. nificant issues play out in 2019. Food Safety and Management of the board Richard Saker will prosperous year ahead! The second issue that did Additionally, NJFC was leadership series, the expansion lead the celebration this year af- not receive final approval was a pleased with continued reform of our student scholarship pro- ter the seed for NJFC was plant-

PEOPLE From page 24

JOH has announced the promotion of Jim Walsh to executive vice president and general manager specialty natural. Walsh has worked in the food industry for 35 years, primarily in the specialty food space. He has worked with Gourmet Award Foods/Tree of Life, and Yan- kee Foods. The past 11 years he has been with JOH as vice president, specialty natural. Jim Walsh “As we continue to focus on servicing the needs of our cli- He has a positive attitude, ents and customers, we work strong work ethic, sense of hard to discuss, plan and de- urgency, impeccable integrity velop our next generation of and an incredible desire and leaders,” said Matt O’Hare, ability to deliver solutions president and COO. “The and results. Congratulations specialty natural division has on this well-deserved promo- grown significantly under Art tion!” JOH RECENTLY ANNOUNCED THAT LARRY WEISS, SPACE MANAGEMENT COORDINATOR FOR THE Papazian’s leadership over the In his new role as post, company’s Metro New York/New Jersey division, has been awarded with its prestigious 2018 Harry past 12 years. In that time we Walsh will be managing all O’Hare Award. have expanded geographical- operations of the specialty The award is presented to the person who most personifies the qualities and values that match those natural division. of the life and career of Harry O’Hare. Mr. O’Hare’s personal and professional legacies are filled with hard ly and attracted spectacular, work, integrity, passion, a positive attitude and team spirit. passionate and talented asso- Walsh lives in Milford, MA “Larry is greatly admired and respected by his peers,” said John Saidnawey, JOH’s chairman and CEO. ciates. As Art transitions his with his wife, Jennifer. They “Most of all, they talk about his amazingly positive attitude. His success comes from his professionalism, EVP role over the next year, have two grown children: Mi- work ethic, listening skills and execution. Larry exhibits all of the values our founder and award name- Jim will undoubtedly do an chael and Timothy. sake, Mr. Harry O’Hare, established and practiced throughout his life. Thank you for being a JOH’er and amazing job leading the team. bringing all this and more to our company. Congratulations on receiving this well-deserved award!”

26 | FOOD TRADE NEWS January 2019 www.best-met.com ssssssssssssssssssssssssssssssssssssssssss ssssssssssssssssssssssssssssss TRADE CALENDAR January 29 to register go to: www.sju.edu/ISFS. contact Ava Stone at 518.434.1916 or [email protected]. TAKING STOCK The New Jersey Food Council will March 17-19 From page 22 host its annual membership meeting July 15 at the Forsgate Country Club in Mon- Seafood Expo International will today’s consumer, noting that “they feel incredibly good about the economy but roe Twp., NJ beginning at 5:30 p.m. be held at the Boston Convention The annual FUPAC golf outing will very nervous about where things are headed.” I wonder if he was referring to just For more information, go to www.nj- Center. For more information, or to be held at St. Andrew’s Golf Club in the economy or was inferring some concern about the political direction of the foodcouncil.com. register, go to https://www.seafoo- Hastings-on-Hudson, NY. For more in- country?...some news from adjacent markets: it looks like we’ll know something dexpo.com/north-america/. formation, contact Rich DeSimone at about the status of Shoppers’ 46 remaining Baltimore-Washington stores very February 6-7 914.697.5352. soon. Multiple sources are telling us that retailers should be notified on or about March 28 Imperial Distributors will hold its July 22 January 25 if they’ve successfully bid for one or more stores. Once the notifica- fall/winter 2019 seasonal selling The New Jersey Food Council will tions have been made, Shoppers would have to provide store associates with a show at the DCU Center in Worces- host its annual Night of Distinction Krasdale Foods inaugural golf 60-day WARN notice of closure. My guess is that slightly more than half of the ter, MA. For more information, con- at The Palace at Somerset Park in tournament celebrating the com- remaining stores will be grabbed during this first auction round. And to further tact Kevin Cooley at kcooley@imperi- Somerset, NJ beginning at 5:30 p.m. pany’s 111th anniversary will be perpetuate the handicapping game, I’m wagering that , Safeway and aldist.com or 508.713.6363. For more information, go to www.nj- held at GlenHead Golf Club in Glen all walk away with multiple stores. And don’t be surprised if retailers foodcouncil.com. Head, NY with proceeds benefiting from other trade channels – perhaps Target, and Lidl - also make successful February 7 multiple charities. For more infor- bids. About five Shoppers stores have already closed over the past sixth months April 11 mation, contact Rich DeSimone at with Giant Food acquiring three of those units…much like the ham-handed The Mid-Atlantic Food Trade Or- 914.697.5352. ganization will host its winter retail- FIA will host its metro reception leverage plays attempted by private equity firms Blackwells Capital (Supervalu) at Tappan Hill in Tarrytown, NY. For and Third Point LLC (Campbell’s Soup), another PE firm is trying exercise more er dinner featuring Retail Marketing September 11-14 Group (RMG) with Mike Rothwell more information, contact Ava Stone control (and ultimately more money?) over another food company - Dollar Tree of Pennington Market as the guest at 518.434.1916 or [email protected]. Natural Products Expo East stores, the nation’s second largest dollar store operator based in Chesapeake, speaker. Cocktails begin at 5:00 will be held at the Baltimore Con- VA. It seems that Manhattan-based Starboard Value is pressuring Dollar Tree to May 7-8 p.m. followed by dinner at 6:00 p.m. vention Center. For more informa- sell its Family Dollar business (which it bought for $8.5 billion in 2015) and at the Radisson Hotel Philadelphia DPI Specialty Foods will hold its tion, go to https://www.expoeast. is also seeking to replace seven of the discounter’s 12 current directors. Star- Northeast. To register, go to www. 2019 holiday trade show in Balti- com/ee18/public/Content.aspx- board Value has acquired 1.7 percent of Dollar Tree’s shares which are valued mafto.org. more. ?ID=1068697&sortMenu=109023. at approximately $370 million. Not surprisingly, Dollar Tree is rejecting Starboard Value’s offer, noting that its current board (which includes four new directors February 19-20 May 22 September 17 who were added since 2016 including its newest board member – former Harris C&S Wholesale Grocers’ Robe- The New Jersey Food Council will The Tri-State Italian-American Teeter CEO Tad Dickson who joined on January 1, 2019) is equipped with the Congress will host its annual golf right skills and perspectives to make its Family Dollar unit a success. It already sonia spring trade show will be held host its annual trade relations con- at the York, PA fairgrounds. ference at Harrah’s Resort in Atlan- outing at Engineers Country Club in stated that it will remodel 1,000 Family Dollar stores and convert another 200 Roslyn, NY and Glen Head Golf Club units to its core Dollar Tree banner. “We believe that Dollar Tree is deeply under- tic City, NJ from 3:00-6:00 p.m. For more information, go to www.njfood- in Glen Head, NY. For more informa- valued and significant opportunities exist to create value,” said Starboard CEO February 20-21 council.com. tion, go to www.trisiac.org. Jeffrey Smith in a letter to Dollar Tree’s board. Blah, blah, blah…and speaking EMD Sales will host its Spring October 2 about questionable PE companies, the Washington Post had an interesting and to Summer Trade Show 2019 at its May 23 sad story about Sun Capital Partners, the venture capital firm whose holdings headquarters in Baltimore, MD, from The New Jersey Food Council will included regional grocery chain . After Marsh, which had 9:00 a.m. to 5:00 p.m. on the 20th The New Jersey Food Council will host its annual Good Government the double whammy of being poorly run by larcenous former CEO Don Marsh in and 10:00 a.m. to 3:00 p.m. on the host its annual golf outing at Subur- breakfast at Forsgate Country Club the years leading up to Sun’s acquisition 2006, and by Sun’s leadership itself, 21st. For more information, email ban Golf Club in Union, NJ with shot- in Monroe Twp., NJ beginning at went bankrupt in 2017, the PE firm was allowed to recoup much of their invest- Kimberly.Hernandez@emdsalesinc. gun starts beginning at 8:00 a.m. 8:30 a.m. For more information, go ment while more than $80 million of pension fund debt and other severance com or call 301.322.4503, ext. 113. and 1:00 p.m. For more information, to www.njfoodcouncil.com. agreements were flushed away. “It was a long, slow decline,” said Amy Gerken, go to www.njfoodcouncil.com. formerly an assistant office manager at one of the stores. “(Sun Capital) didn’t February 24-27 October 17-19 June 2-4 really know how grocery stores work. We’d joke about them being on a yacht The NGA Show will be held at the PMA’s Fresh Summit will be held without even knowing what a UPC code is. But they didn’t treat employees right, San Diego Convention Center. For IDDBA’s 2019 Dairy-Deli-Bakery in Anaheim, CA. For more informa- and since the bankruptcy, everyone is out for their blood.” The Post story points more information, go to www.thenga- Expo will be held in Orlando, FL. tion, go to https://www.freshfrom- out that, all told, Sun Capital, based in Boca Raton, FL, has sought bankruptcy show.com. Registration opens in January at mexico.com/event/pma-fresh-sum- https://www.iddba.org/. for five of its companies over the past decade leaving nearly $300 million owed mit-2019/. to employee pension funds. And it’s not that Sun Capital’s ineptness was a great March 7 June 11 secret to those in the grocery industry; their ineptitude was known by many in The annual ‘A Vision For The Fu- October 24 the food biz. Along with another Florida-based PE firm Comvest Partners (whose The annual NSA golf outing will ture’ dinner will be held at Terrace The annual FIA Red Carpet ban- reverse Midas touch was demonstrated by ’s attempt to acquire divest- be held at Montclair Golf Club in West on the Park in Flushing Meadow quet will be held at Glen Island Har- ed Albertsons/Safeway stores), these two private equity firm represent worst Orange, NJ. For more information, Park, NY honoring Fine Fare’s Rudy bour Club in New Rochelle, NY. For contact the NSA at 718.747.2860. in class…and could this possibly be the end of Sears? Well, not quite. “Slow” Fuertes, past president of NSA. For more information, contact Ava Stone Eddie Lampert, the man who almost single-handedly ruined Sears over the past more information, contact Katie Van June 23-25 at 518.434.1916 or [email protected]. 13 years, is likely to gain control over the bankrupt organization again. It seems Benschoten at 212.244.1470 or that Lampert’s $5.2 billion bid to keep 425 Sears and Kmart stores open and kvanbenschoten@fightblindness. The Summer Fancy Food Show November 14 retain (at least for now) 50,000 employees could well be accepted since he was will be held at the Javits Center in org. FIA’s Albany trade dinner will reportedly the only bidder who wasn’t planning to liquidate the company’s real New York City. For more informa- be held at Glen Sanders Mansion estate, brands and inventory. However, a group of Sears creditors who are owed March 12-13 tion, go to www.specialtyfood.com/ in Schenectady, NY. For more in- at least $3.4 billion filed an objection to Lampert’s bid claiming, “Sears’ down- shows-events/summer-fancy-food- Saint Joseph’s University’s food formation, contact Ava Stone at fall is nothing short of tragic. (At Lampert’s direction) Sears engaged in serial show/. asset stripping, taking Sears’ best assets out of the enterprise to shield them marketing program and the Ita- 518.434.1916 or [email protected]. ly-America Chamber of Commerce from the claims of other creditors...in anticipation of these inevitable bankrupt- will host their inaugural Internation- June 24 cy proceedings.” On February 4, New York Bankruptcy Court Judge Robert Drain If you would like to publish an event al Specialty Food Summit at Saint The FIA Jack Duffy Golf Classic in our trade calendar, please send Joseph’s University’s Philadelphia will be held at Scardsale Golf Club in entries to Terri Maloney at tmaloney@ TAKING STOCK continues on page 28 campus. For more information and Scarsdale, NY. For more information, best-met.com.

www.best-met.com January 2019 FOOD TRADE NEWS | 27 their own golf outing this event is perfect to entertain customers ssssssssssssssssssssssssssssss or reward employees. Over the summer we fill the lazy hazy days with communi- TAKING STOCK ty outreach activities and in the From page 27 early fall we will host a Fall retail- er dinner with a guest speaker. (he of A&P bankruptcy fame) will have to sort out this mess. And, truthfully, if MAFTO’s biggest event of the Lampert is let back in the building, the company, although with less debt, will be in virtually the same operating and merchandising predicament as before – tired year, the Signature Gala, takes stores that offer boring merchandising and little innovation. Do you think “Slow” place in early November when Eddie has the creativity and spark to change Sears’ image, especially with limit- we devote an entire weekend to ed capital to improve Sears’ physical plants? Can’t this guy just go away? By Chet Dudzinski honor a key retailer in our mar- MAFTO President ket. We hope to have big news Local Notes shortly. The gala takes place in Atlantic City, NJ and features a A few thoughts about the Stop & Shop/King Kullen deal. In one sense, this Greetings! My name is Chet and dinner. Friday night dance party, Satur- is win/win situation – Stoppie gets to expand its market leadership position on Dudzinski, key accounts man- In addition, MAFTO awards day afternoon excursions, and a Long Island and the Cullen family gets to bow out gracefully after a tremendous ager at ALL Holding Co. (Leidys college scholarships to qualified Saturday evening reception that 89-year run with the claim of being America’s first supermarket. That said, this deal is also a microcosm of the attrition impacting the regional supermarket and Alderfer) located in Soud- members, their families and de- culminates in a fabulous night chains and independent grocers in the U.S. Last month, Lidl swooped in and erton, PA. ALL Holding Co. is a pendents regardless of their field of dinner and dancing. Sunday acquired Best Markets, another Long Island-based regional with reported signif- manufacturer of pork, beef, and of study. Over the years we have morning, we provide a lavish icant debt. Over the past year, we’ve seen the ongoing divestiture of UNFI/Su- turkey products for the retail and awarded hundreds of thousands buffet breakfast before you head pervalu’s corporate regional banners (Farm Fresh, Shop ‘n Save, Shoppers, foodservice industries. I served of dollars in scholarships. We home. It all adds up to the most Hornbacher’s) and the sale (one store to Giant/Martin’s) and closing (three as the president of the Tri-State also organize and execute sev- memorable event of the year! stores) of Darrenkamp’s in Central Pennsylvania. Other independents and re- Dairy Deli Association in 2004. eral community service projects In December we close out the gionals have issued prospectuses exploring sales options. For those smaller I have the honor and privilege during the year which have in- year with our perennial favorite, retail organizations the ability to keep pace from a technology and overall capi- of serving as the 2019 president cluded serving dinner at Hope Christmas for All Kids Monte tal perspective is more daunting than ever. Family-owned firms face perpetua- of the Mid-Atlantic Food Trade Lodge for cancer patients, vol- Carlo Night! Come enjoy a night tion issues, too, plus there’s the intangible element of dealing with the emotion- Organization (MAFTO). unteering at Philabundance and of networking, great food and al demands of a business that’s now become overstored, diversified and filled MAFTO is the most influen- providing toys to needy children fun. Bring an unwrapped new with deep-pocketed competitors. Despite the pride and fulfillment that comes from operating a legacy business, the Cullens, who faced many of those issues tial and relevant food trade or- at Christmas. We encourage all toy and use your “funny money” for more than a decade, made the right move in selling. As for Stop & Shop, it ganization in the Greater Phila- our members to participate in to play casino games for a chance is now poised to expand its already dominant share in Nassau and Suffolk delphia Market. Formed by the these initiatives. The Sunshine/ to win great prizes. All the toys counties, especially with another $150 million being invested to improve its 51 merger of four different groups, Save-A-Life committee reaches from the event are donated local- current Long Island stores. With nearly 50 percent of King Kullen’s locations it has served the retail and food- out to people in our industry ex- ly to needy children. within the same general trading areas as Stoppie’s units, it will be interesting to service industries in one form or periencing challenging circum- One of the nicest things about see how many of those 37 KK units remain open after the dust settles. Stop & another for more than 100 years. stances or tragedy with words of being a member of MAFTO is, Shop is also going to be utilizing technology in the form of robotics at many of Also, I am pleased to announce encouragement, a helping hand in addition to all the new peo- its stores. The Quincy, MA-based Ahold Delhaize USA (ADUSA) “brand” will be that MAFTO as of the end of and financial assistance. Our ple you will meet, all the familiar unveiling a fleet of driverless vehicles in the Boston area that will allow custom- 2018, MAFTO became a 501(c) charity is always offered discreet- faces you will see at our events. ers (using a smartphone app) to command a modified food truck to park out- (3) organization. ly and with love. I have been in this business for side their homes where they then can personally select a limited group of items The MAFTO board is com- Membership to MAFTO is many years - getting my start at (mainly perishables) that they procure in a checkout-free manner. “This is one way in which we’re leveraging new technology to make shopping easier for our prised of approximately 25 direc- free and open to anyone in the the H.A. McGinnis Food Bro- customers—by essentially bringing the store to them. “We also recognize that tors, all donating their free time retail food industry or support- kerage company in 1976 at the many of our customers want the opportunity to make their own choices when it to make all this happen. They ing industries employed in a age of 19 years old - and I am comes to fresh produce, and we’re proud to be the first retailer to engage with work extremely hard at their professional, management or always thrilled that I am able (developer) Robomart to address our customers’ needs with their cutting-edge full-time jobs and then give their leadership capacity. We fund our to catch up with so many of the solution,” said Stoppie’s president Mark McGowan. Stop & Shop and sister divi- free time to support MAFTO so organization and charitable ef- people that have been a part of sion Giant/Martin’s will also be rolling out approximately 500 robots in its that we can provide scholarships forts through the several events my professional experience in a stores to help with issues such as food spills and to spot of out-of-stock items. and charitable benefits to those we hold and therefore ask that relaxed social setting. You don’t The googly-eyed machines, named Marty, should be operating at many Stop & in need. This organization would our members attend as many of need to be a member of MAFTO Shop units and all 172 Giant/Martin’s stores by the middle of this year. Late last not be in existence without these our events as they can each year. to attend an event. We hope you year, Ahold Delhaize said it would also build robot-manner automated ware- generous people. The first event of 2019 will be will come out to our events this houses adjacent to some of its stores about which company CEO Frans Muller With the many changes fac- our winter retailer dinner on year and see for yourself what we said: “With the robotized solution, we can optimize those picking costs and be closer to micro-fulfillment to our catchment areas, We can also reduce the cost ing our industry the need for an February 7, hosting the Retail are all about. For more informa- of the last mile.”… has launched a new price reduction program, organization like MAFTO has Marketing Group with Mike tion please visit www.mafto.org. effective January 17. The Sunbury, PA-based regional merchant said it has low- never been greater. We are in Rothwell as our guest speaker. I am very excited about our ered prices on more than 7,000 products in every department in all of its 203 a unique position to bring to- Next up is our annual golf out- plans for MAFTO in 2019 and stores. “We understand saving money has never been more important for our gether manufacturers, brokers, ing, always the first of the sea- the rewarding experiences they customers,” said Richard Gunn, Weis Markets’ senior VP-merchandising and wholesalers, distributors, ser- son and an industry favorite, promise to bring. On behalf of marketing. “That’s why we are making a multi-million-dollar investment to pro- vice providers and retailers for on April 29 at Commonwealth everyone on the board of direc- vide the lowest price in the market on more than 7,000 everyday products.” meaningful dialog at a variety of Country Club. Enjoy a beautiful tors we sincerely thank you for Additionally, in a move related to the Federal government shutdown, Weis it has networking events throughout spring day with industry leaders your support of MAFTO and accelerated store shipments of high-demand purchases by SNAP (food assis- the year. I can think of no better on the links, cocktails and dinner look forward to seeing you at our tance) customers. “As a result of the shutdown, customers who use SNAP to way to stay abreast of the indus- in the evening and fabulous door events in 2019! try then to hear firsthand from prizes too. If your company does Chet Dudzinski TAKING STOCK continues on page 30 its key leadership over cocktails not have the resources to hold MAFTO 2019 President

28 | FOOD TRADE NEWS January 2019 www.best-met.com www.best-met.com January 2019 FOOD TRADE NEWS | 29 Now Under Amazon’s Control, WFM Abandons ‘365’ Concept ssssssssssssssssssssssssssssss From page 1 the company’s current focus on its the company had plans for 22 ad- other bricks-and-mortar retail di- ditional 365 stores in development ey said, “As we have been consis- vision, . Both 365 and and that he expected that number TAKING STOCK tently lowering prices in our core Amazon Go are smaller sized pro- to increase. stores over totypes offering fewer items than a Currently, there are two doz- From page 28 the past year, the price distinction traditional supermarket. What sets en 365 locations, in California (5 between the two brands has be- purchase their groceries will receive their February benefits this week (beginning Amazon Go apart is its extremely units), Georgia (2), Texas (2), Ohio, come less relevant. As the compa- on January 17) - essentially two to three weeks ahead of schedule,” said Kurt small footprint (about 1,500 square Oregon and New York (Brooklyn). ny continues to focus on lowering Schertle, Weis Markets’ COO. “To meet this early demand, we have moved up feet), its cashier-less design that All are currently expected to re- prices over time, we believe the our delivery schedules to ensure that we are in stock for our customers. We are gives customers a quicker, more main open and operate under the price gap will further diminish.” doubly prepared for this increase in demand due to predictions of snow in streamlined shopping experience 365 banner. many of our markets. As a company that supplies its own stores and operates The news did not come as a sur- The first 365 location in our -re its own dairy, our procurement and distribution teams are able to respond prise to analysts since the chain that focuses on quick purchases gion opened in the Fort Greene quickly and adjust to meet this early demand.”…sadly, there are several obits had lowered some of its prices of often-needed items. It currently section of Brooklyn in January to report over the past month...just before presstime, Whole Foods opened its since being acquired by Amazon has opened 10 “Go” units in major 2018. The last two 365 stores long-awaited new store in Newtown Square, PA. The 51,000 square foot unit is in June 2017, leading to less dif- cities, locating those stores in busy opened in December 2018 - in the the 14th WFM unit to open in the Delaware Valley… I was shocked to hear ferentiation between the 365 and downtown urban sites. Buckhead section of Atlanta and in about the sudden passing of Nate Ostroff, 70, a highly visible member of the traditional WFM formats. The first 365 debuted in the Sil- Decatur, GA. Delaware Valley grocery community for more than 40 years. As owner of his own Soon after acquiring the Austin, ver Lake area Los Angeles in May Per the Whole Foods website, brokerage firm, Network Food Brokers, Nate’s wisdom, generosity and warmth TX based retailer, Amazon also 2016. The stores focused on Whole as of last month there were 11 touched many. I also admired Nate’s candor and his accessibility – he went out began offering discounts to Am- Foods’ less expensive private label of his way to help many people and seemed always available to support the planned 365 stores, including two azon Prime members and selling “365 Everyday Value” brand, de- industry he loved including in the early days when I first met him though his Amazon devices in Whole Foods signed to appeal to a younger de- in the Mid-Atlantic and Northeast involvement with the old Tri-State Dairy-Deli Association. An all-around good stores. Additionally, Amazon be- mographic as well as to price-con- regions. A long-planned location guy and a real mensch, I’ll miss you, Nate…also leaving us was Nancy Wilson, gan offering free grocery delivery scious shoppers who avoided in Fairfax, VA is still on the books the great jazz singer. Wilson’s voice was flexible and soothing. She was able to for Prime members at select loca- Whole Foods, which consumer and ground has been broken on a belt out bluesy songs as well as jazz ballads and pop tunes. Wilson, 81, began tions last year and gave customers sometimes referred to as “Whole new 365 location in Weehawken, her career in 1959 and retired in 2011. All told, she recorded more than 60 the option to pick up their online Paycheck.” The 365 stores are NJ, both new urban-type develop- albums including my favorite, “Nancy Wilson/Cannonball Adderley” orders at nearby Whole Foods lo- smaller (about 25,000-30,00 square ments. (1961)….“Super Dave Osborne” has also passed. “Super Dave,” the incredibly cations. That program has been feet) than conventional WFM units Other planned new locations are stupid stuntman whose exploits would often leave him injured, was really Bob expanded and will eventually cov- (about 38,000 square feet on aver- in more advanced construction de- Einstein, a talented writer and actor who literally was born into comedy – his er all markets where Whole Foods age, but as large as 80,000 square velopment. At presstime, the com- father was radio comedian and writer Harry Einstein and his brother is Albert Einstein, who for some mysterious reason changed his last name to Brooks. operates. Also being broadened is feet). The smaller format carries pany revealed that it would instead far fewer SKUs (7,000 vs. 20,000) open some of the planned 365 Bob Einstein, who got his first break writing for the Smothers Brothers in late the company’s “Prime Now” pro- 1960s, most recently played the annoying but funny recurring character Marty gram, its two-hour delivery service and does not feature full service units as conventional Whole Foods stores, but did not provide any de- Funkhouser in Larry David’s hilarious “Curb Your Enthusiasm” series. Einstein for select items, which is currently departments like bakery and deli. was 76…legendary Broadway star Carol Channing, whose signature platinum offered in about 60 cities through- As recently as May 2017 (one tails on plans for specific locations. Oversight of the current 365 hair and raspy voice made her immediately recognizable - she was the original out the U.S. month before the company was Dolly Gallagher Levi (“Hello Dolly!”) - died earlier this month at the age of 97. stores will be rolled into the re- Perhaps also related to the de- acquired by Amazon for $13.7 bil- Channing began her Broadway career in the early 1940s. While she appeared cision to end the 365 format is lion), Mackey told investors that tailer’s current regional structure in nearly 30 films and TV shows, Channing’s career was highlighted by her 60- and Jeff Turnas, who has served as year affiliation with Broadway. She was also the original Lorelei Lee in the mu- president of 365 since 2015, will sical “Gentlemen Prefer Blondes” (Marilyn Monroe got the movie role). In 1981, move to another role at Whole she was inducted into the American Theater Hall of Fame. She also received Foods. The company said it would lifetime achievement awards from the Tonys and the Drama Critics Circle….also absorb 365 employees into existing passing on was former New York Yankees pitcher and pitching coach Mel Stot- Whole Foods divisions. tlemyre. Stottlemyre pitched 11 seasons for the Bronx Bombers and was a While there will be no new plans standout on some of the worst Yankees teams from the mid-1960s to early for 365 locations, recent specula- 1970s (career record 164-139 with a 2.97 ERA). After retiring as a player, tion has focused on Whole Foods’ Stottlemyre remained in the game as a pitching coach. He helped the 1986 potential interest in now shuttered New York Mets (Dwight Gooden, Ron Darling, etc.) win the World Series. Ten Sears and Macy’s locations as it years later, he guided a talented pitching staff (Roger Clemens, Andy Pettitte, seeks to bulk up its bricks-and- Mariano Rivera, etc.) to four World Series victories – 1996, 1998, 1999 and mortar presence. According to 2000. A quiet, tough guy who was admired by his peers, Stottlemyre was 77 industry insiders who spoke with when he died… Marion Wormer is dead. Well, actually, Verna , the actress Yahoo Finance, Amazon is inter- who played the wife of Faber College Dean Vernon Wormer (actor John Vernon) in the iconic movie “Animal House” (1980), has left us. In one of the most hi- ested in opening new Whole Foods larious scenes in the film, suave fraternity member Otter (Tim Matheson) runs ROUTES AVAILABLE stores and expanding the chain be- into Mrs. Wormer in the local supermarket produce aisle and begins talking SEEKING INDEPENDENT DISTRIBUTORS yond its current 475 U.S. locations. about cucumbers. Here’s some of the ensuing dialogue. Otter: “My name is Eric Additional bricks-and-mor- Stratton. They call me Otter.” Marion Wormer: “My name is Marion. They call me tar locations could also greatly For Direct Store Delivery to Grocery Stores Mrs. Wormer.” Otter: “We have a Dean Wormer at Faber.” Marion Wormer: “What increase the company’s ability to a coincidence - I have a husband named Dean Wormer at Faber.” In a subse- Routes Available in: offer in-store pick-up of online or- quent scene, she attends a frat house toga party and ends up in bed with Otter. Boston, MA • Albany, NY • Northern VA • Maryland ders, as well as provide additional Actually, Verna Bloom was serious stage and screen star, whose superb acting space for Amazon to store more could be seen in an excellent and highly underrated film - “Medium Cool” Call Paulo Lopez 301-573-9683 products, a key synergy that could (1968) - a semi-documentary about the rioting during the 1968 Democratic be realized by the combined Ama- National Convention in Chicago. Bloom was 80 when she passed. zon-WFM entity.

30 | FOOD TRADE NEWS January 2019 www.best-met.com Are You Reaching Your Food & Drug Customers In This $175 Billion Marketing Area? Out of Region Companies Receiving FOOD WORLD & FOOD TRADE NEWS: Ahold Delhaize, Amsterdam, The Netherlands Albertsons Companies, Boise, ID Aldi, Batavia, IL , Issaquah, WA Kroger, Cincinnati, OH Sam’s Club, Bentonville, AR Save-A-Lot, Earth City, MO Sprouts, Phoenix, AZ Supervalu, Eden Prairie, MN Target, Minneapolis, MN Trader Joe’s, Monrovia, CA Wal-Mart, Bentonville, AR Walgreens, Deerfi eld, IL Whole Foods, Austin, TX 7-Eleven, Dallas, TX

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