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Frozen Food: Clarence Birdseye's Dream Is Today's Fact of Life

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Frozen Food: Clarence Birdseye's Dream Is Today's Fact of Life INSIDE Meet Rep. Michael Bennane........................................ 6 Curbing shoplifting, bad checks ............................... 4 Shoppers rate grocery manufacturers.......................9 September kicks off new lottery gam es................ 17 VOL. 3. NO. 9 An official publication ol the Associated Food Dealers of Michigan SEPTEMBER 1992 and its affiliate, Package Liquor Dealers Association AFD on the s c e n e ....................................................... 20 printed on recycled paper AFD supports winners in Michigan House primary Thanks to the help of our members and our Political Action Committee, the Associated Food Dealers of Michigan supported 34 candidates in the primary elections for the Michigan House of Representatives. Out of the 34 candidates we sup­ ported with monetary contributions, 31 were victorious, including several non-incumbents, which translates into a 91 percent success rate. All the candidates that AFD contributed to are supportive of business in general and of the AFD’s concerns in particular. Committee waters down bill on pornographic Frozen food: Clarence Birdseye’s videos, publications The Senate Judiciary committee approved legislation last month by a dream is today’s fact of life 7-6 vote to give victims of sex crimes a cause of legal action against It was cold and blustery in the course of food marketing—the in­ Birdseye’s vision has been transform­ retailers of books, videos and Springfield, Mass., and March 6, troduction of the first retail line of ed into a $40-plus billion a year magazines, deemed to be por­ 1930 would have been doomed to the frozen foods. business and an intrinsic part of the nographic. The committee amended anonymity of many a drab New Six decades after this bold ex­ nation’s supermarket and foodservice the Pornography Victims’ Compensa­ England winter day had it not been periment, years filled with victories, industries. In fact, frozens and super­ tion Act (S. 1521), to permit suits for one event which forever altered defeats and frustrations, Clarence markets grew up together, since 1930 only after the perpetrator of the also marked the birth of the modern crime was found guilty. The defen­ FLORIDA RETAILER STUDY: supermarket. dant must also be convicted of pro­ Freezing food as a means of duction. distribution, or sale of illegal preservation actually began in 1908 pornography before a lawsuit can be Is The Lottery a Winner? when west coast growers froze drums initiated. AFD members should not of sugared fruits and berries in an be affected by this now watered-down QUESTION: Has the lottery had a positive impact on your company's profitability? ice-salt mixture. Variations of this so- bill —Washington Report Companies with less than than 20 convenience stores: called cold pack process were soon Yes 25% No 75% being used for ice cream, chicken National bottle bill Companies with more than 20 convenience stores: and fish. Yes 40% No 60% Efforts continue to enact a na­ However, Clarence Birdseye, who continued to experiment with tional bottle bill. The legislation has QUESTION: Has the lottery caused crowds in stores and congested check-out lines been turned down in three committee which have driven away customers? new methods of food preservation un­ votes this year, but hearings will be Companies with less than 20 convenience stores: til his death in 1956, was in­ held on the proposal in the Senate Yes 77% No 23% disputably the father of the frozen food business, for it was he who before Congress adjourns for the Companies with more than 20 convenience stores: year. This indicates the national bot­ Yes 90% No 10% developed the technology to freeze tle deopsit legislation will again be food without damaging its cellular pushed in the next session of Con­ QUESTION: Has the lottery caused an increase in the cost of your store security? structure and who first froze foods in gress. —FMI Companies with less than 20 convenience stores: a package that could be sold directly Yes 43% No 57% to consumers. Child labor laws Companies with more than 20 convenience stores: BEFORE 1930. The United States Department of Yes 80% No 20% According to industry lore, the Labor has announced the results of a Birdseye saga predated the Springfield SOURCE Study by Arthur Andersen and Co tor the Retail Grocers Association of Florida (1989) two-week “blitz” by Wage and Hour experiment by nearly 20 years. As a investigators in smaller towns See Executive Director's Report for related story—page 3 young engineer in Labrador in 1912, See UPDATE, page 20 See FROZEN, page 16 2—FOOD & BEVERAGE REPORT. SEPTEMBER 1992 Frank Arcorl Chairman Vegas Food Centers Amir Al-Nalml Lottery industry must make games Immediate Past Chairman Metro Grocery, Inc. Nabby Yono First Vice Chairman more retailer friendly XTRA Foods Thomas Welch By Joseph D. Sarafa Metro Detroit, people will buy lot­ more lottery terminals are located in Vice Chairman Hollywood Super Markets Executive Director tery tickets before they buy food, convenience stores than in any other Mark Karmo jeopardizing the welfare of their type of retail outlet. With Texas and Vice Chairman With Texas family,” says Basil Boji, owner of Georgia joining the ranks of lottery Royal Food Center retailers recently Boji’s Food Center in Dearborn. retailers nationwide, the issue of the Richard George Secretary launching the “ I’ve seen it in my previous stores lottery’s profitability is magnified. Wine Barrel Texas State Lot­ and I even see it here in Dearborn." The National Association of Conve­ Bill Vlvlano tery and Georgians He adds that he keeps a lottery nience Stores is planning to initiate Treasurer Marks Sales & Marketing expected to ap­ machine mainly as a service for his an industry dialogue this fall to ad­ prove a lottery customers. dress lottery issues, determine game to begin ear­ According to the National average operating costs and in­ Raad Ayar ly next year, this Association of Convenience Stores vestigate other ways of making lot­ Harvest Foods is an opportune Sarafa (NACS), Georgia retailers have been tery more profitable for the industry. Sam Dallo time to review our active with the lottery commission in The AFD will work closely with In 'N ' Out foods Fred Dally own lottery program and once again preparation for next year’s start-up. the NACS, in order to resolve these Medicine Chest ask the question: Does lottery pay? Specifically, they have pointed out matters. The result of this effort may Terry Farida Impacted by lean commissions, that retailers consider lottery tickets a yield new information that can help Value Center Market many operators across Michigan have product and treat them just as they do bring commissions in line with costs Jamal Garmo Galaxy Foods struggled to show lottery profits. In any other product in the store. Each and turn lottery customers into store Raad Kathawa addition, lottery retailers are also product has certain costs associated customers—a winning combination Ryan's Foods concerned with the difficulty faced in with its sales such as labor, accoun­ and the industry’s ticket to lottery Tony Munaco turning lottery customers into store ting and security. success. Mack-Bewick Super Market Thomas Slmaan customers. In a study conducted by In Michigan, it costs approx­ Lafayette Towers Supermarket Arthur Andersen & Company for imately $600 per week to run a lot­ Jerry Yono Florida retailers, the overwhelming tery machine. If a store doesn’t do at Sept. 19—Eleventh Annual Detroit Inter­ D & L Market majority said that the lottery had not least $10,000 a week in sales, it is Sam Yono national Wine Auction. Black Tie—to Palace Plaza had a positive impact on their com­ probably losing money. benefit the Center for Creative Studies. pany’s profitability. (See graph on On the subject of commissions, Edsel and Eleanor Ford House, 1100 page 1). California raised its commission in Lakeshore Drive, Grosse Pointe Shores. (313) 872-WINE. Jerry Inman Many times customers, especially 1990 because selling costs had made Paul Inman & Associates in poorer urban areas, will substitute the product less attractive to retailers. Oct. 6 - Nov. 10— Food Service Sanitation, Mel Larsen the purchase of a food item to try Georgia, like California, is pushing Madonna University, 3660 Schoolcraft, Club Cars, Inc. Livonia, Ml 48150-1173. Six-week Ron Paradoskl their luck at the lottery. "In parts of for a higher commission citing higher workshops for owners, managers and Coca-Cola Bottlers of Michigan, Inc. labor costs as a result of the last two supervisors for food service Alan Stotsky minimum wage increases. establishments. 7:30-9:30 p.m. (313) Concord Drugs 591-5096. Statement of ownership In Michigan, as in most states. Barbara Welss-Street More events on page 17 The Paddington Corporation Chris Zebari The Food & Beverage Report Pepsi Cola Company (USPS 082-970; ISSN 0894-3567) is published monthly by the Associated The Grocery Zone By David Coverty Food Dealers at 18470 W. 10 Mile, Southfield, Ml 48075. Subscription Joseph D. Sarafa price for one year is $3 for Executive Director & Publisher members, $6 for non-members. Judy Mansur Material contained within The Food & Services Beverage Report may not be Sue Knapp Office Administration reproduced without written Jim Larges permission from the AFD. Second Office Manager Class postage paid at Southfield, Mona Youhana Michigan. Receptionist POSTMASTER: Send address Vicky Ople changes to Food & Beverage Special Events Report. 18470 W. 10 Mile, Phil Haddock Southfield, Ml 48075. Sabah Brlkho ADVERTISERS: For information on Glenn Christian advertising rates and data, call AFD, Membership Ray Amyot, 18470 W. 10 Mile, If we can help you. please call the staff Southfield, Ml 48075, members at (313) 557-9600 or 1-800-66-66-AFD. (313) 557-9600 or (517) 386-9666.
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