Associated Food Dealers BULK RATE 18470 W. 10 Mile Rd. U.S. Postage Southfield, Ml 48075 ASSOCIATED FOOD DEALERS OF MICHIGAN PAID Permit No. 36 Address Correction Requested Detroit, Ml

PACKAGE LIQUOR DEALERS ASSOCIATION MC Michele MacWilliams Metro Media FOOD & 7164 Deer Lake Court BEVERAGE REPORT Clarkston MI 48346

VOL 11, NO 8 An official publication of the Associated Food Dealers of Michigan and its affiliate, Package Liquor Dealers Association August 2000 Working hard for our members. Inside Guest Editorial A great day for golf Preventing cross contamination • See page 4 Illegal temporary signs Kraft looks to center once again a problem store success • See page 22 by Marsha S. Bruhn. Director Detroit City Planning Commission Meet Rep. Khardt Many of us remember in effect was noticeable. By the • See page 26 1994 the clutter that time the ordinance went into Seminars on new food surrounded many party stores effect on July 8, 1995. most law offered and gas stations because of of the illegal banners had • See page 34 product banners that were come down— the reason for Two Jackson stores give strung up and around a the improvement: KBT high marks business's building, fences, cooperation. Since most of • See page .12 poles, and walkways. the illegal, temporary signage For customers they were came from beverage and food Meet AFD’s Scholars confusing and unsightly and distributors, as well as the • See page 28 for merchants they were Michigan Lottery, once the often an unwanted hassle. decision-makers in those Golfers had a great day at the AFD Golf Outing held at The image created along the agencies got the word, the legislative Update Wolverine Golf Course. The skies were blue, the greens were commercial strip was a flow of illegal banners to green and the sun was shining brighter for all the 32 AFD negative one. merchants stopped. Scholarship award winners. Look for more pictures of the July | Senate votes for As a result. Detroit City The ordinance didn't 20. 2000 event in next month’s Food & Beverage Report. | estate tax repeal Council, with the support of prohibit temporary signs the Associated Food Dealers, altogether, though. The Republican-led U.S. Made in Michigan enacted Ordinance No. 28-94 Merchants who want to Senate last month voted to to generally prohibit outdoor abolish estate taxes, sending Help us celebrate the bounty of Michigan temporary signs and banners See Illegal signs, page 5 the bill to President Clinton. products during our October Made in Michigan throughout Detroit. The who called it a “budget busting" tax cut for the rich special edition. Please call Tom Amyot at (248) that he pledged to veto. 557-9600 or 1-800-66-66-AFD to be a pari of Get ready for the holidays! The Senate voted 59-39 this exciting publication. lor the bill that would phase out gift and estate taxes over 10 years, but the tally was Keck leads liquor board short of the two-thirds majority needed to override a The acting chairman of A commissioner since veto. the Michigan Liquor October 1997. Keck has had Nine Democrats broke Control Commission has several roles at the with the White House, which been announced. Walter commission including COO. argued that only 2 percent of Keck will replace deputy director of estates ever pay the tax. and Chairwoman Jacquelyn enforcement, and supervisor joined the Republican Stewart after her untimely of hearings and appeals. majority to support the bill. death on June 19. Republicans joined the Democratic opposition The Seniors to picnic on House passed identical legislation in June, with 65 Belle Isle Democrats joining the Once again, AFD is expected to feed Republican majority to sponsoring the popular approximately 3,000 repeal, and the bill Senior Picnic on seniors and always Get holiday "spirits" at "Stocking Stuffers.” Michigan's now goes to the president’s Thursday. August 16 on welcomes the help of its premier holiday trade show. Taste new products, and buy desk. them in a convenient, time saving, one-stop shopping spree. Belle Isle. The theme for members. For more Stan your holiday season with the AFD/Beverage Journal In a statement, Clinton the 10th annual event is information, call Tom Holiday Show on September 27 & 28. 2000 at Burton Manor See Legislative Updates Business and Community Amyot at (248 ) 557-9600 in Livonia. See ad page 15 for details. 10 Together. AFD is Visit our Web site at: http://ww.cstorecentral.com/afd.htm

Sam Dallo, Chairman President's Message In 'N' Out Foods, Region 4 Terry Farida, Vice Chair, Future Planning Value Center Markets Fred Dally, Vice Chair, Legislation Medicine Chest Gary Davis, Vice Chair, Membership Tom Davis & Sons Dairy Co. Success in our industry means knowing Ronnie Jamil, Treasurer Mug & Jug Liquor Stores Chris Zebari, Secretary New Hudson Food Market what your customers want

Bill Viviano House of Prime and providing great customer service. sales as a new way to provide Mark Karmo With every challenge comes extended customer service and Golden Valley Food Center opportunity. Those independent increase sales. Nabby Yono Orchard Food Center retailers who take advantage of the A former Internet executive with a Frank Arcori opportunities will be successful. I California biotech company, Francie V.O.S. Buying Group recently read about two Baltimore - Black, plans to launch a Web site Amir Al-Naimi Joy-Thrifty Scot area businesses that are good designed to allow local grocery stores RETAIL DIRECTORS examples: Eddies of Roland Park and to offer online sales. Her new Phyllis DeSmet Woodbum’s of Solomons. Eddies venture, GroceryStreet.com offers Spartan Stores. Inc Region 3 found their niche in gourmet and grocery stores an outsource Jim Garmo prepared foods. Their baggers carry alternative to online sales. Shopper’s Valley Market, Region 2 James Hooks packages to cars and employees will Scheduled to go live on August 22, Metro Foodland shop for and deliver groceries. retailers including Value Center Raad Kathawa Woodbum’s was competing with Markets located in Livonia and Ryan’s Foods, Region 1 Alaa Naimi Food Lion. When Food Lion first Warren, Shopper’s Market in Center Thrifty Scot Supermarket By Joe Sarafa opened, Woodbum’s lost half its Line, Vegas Market in Warren and Vic Ventimiglia, Jr. AFD President business. They decided to undertake Hollywood Market in Troy have Vic's World Class Market Thomas Welch I seem to read a lot of doom and a complete makeover rather than signed on. Hollywood Super Markets gloom stories about the food industry, compete on Food Lion’s terms. Perhaps Internet shopping isn’t Brian Yaldoo as we begin this new millennium. For Today Woodbum’s has expanded Woodward Long Lake Shell your store's niche. Maybe prepared Jerry Yono those wholesalers, retailers and their store and operates an upscale foods and gourmet coffees aren’t right Imperial Sunoco manufacturers who don’t look for new gourmet and natural foods store. for you either. These are just a few SUPPLIER DIRECTORS solutions and operate under a “business They offer prepared foods, have full- examples of how some stores have Brian Belobradic as usual” motto, doom and gloom may service seafood and deli departments evolved to survive in our competitive Anheuser-Busch, Inc. be around the corner. and operate a gourmet coffee bar. marketplace; but there are many ways Frank Bodi Seagram Americas However, I feel strongly about the Their business is now ahead of where retailers can change today to be Al Chittaro opportunities that lie ahead for the it was before Food Lion opened. successful in the future. Finding a Faygo Corp. independent retailers who embrace Locally, an opportunity exists for a need and filling that niche can help Earl Ishbia Sherwood Food Distributors change and shape their futures by being new form of grocery sales - off the retailers stay on the road to success. Marty Miller entrepreneurial, understanding Internet. Still in its infancy, some C oca-Cola, Region 6 consumer needs, finding a niche to fill savvy retailers are looking at Internet Mike Rosch The crazy days of summer General Wine & Liquor Co. When you read this, our annual Tom Waller golf outing will be just another good CROSSMARK, Region 5 The Grocery Zone summer memory. Hopefully everyone had a great time meeting Tom Simaan By David Coverly with old friends and making new Lafayette Park Market Alan Stotsky ones. We were very impressed with F&M Drugs the deserving scholarship winners that Sam Yono Ramada Southfield AFD supports through this event. We all look forward to summer but it always goes too fast. Maybe we Joseph D. Sarafa President and Publisher can still get in a golf game or a trip to Daniel Reeves the beach and a family picnic before Deputy Director summer ends. Judy Shaba AFD Service Group Unlike the grasshopper who played Elizabeth Arbus all summer and had no food stored Services Manager for winter, here at AFD we are Harley Davis mindful that winter is coming and are Coupons Danielle MacDonald preparing for all that fall and winter Special Events Consultant bring. Rebecca Henrich Our big AFD/ Beverage Journal Special Events Manager Tom Amyot Holiday Show is September 27 and Special Events and Advertising 28 at Burton Manor and Toast Ray Amyot Michigan, an October 27 Wine Advertising Cheryl Twigg Tasting event at Excaliber in Office Manager Southfield, will be coming up before James V. Bellanca Jr. wc know it. Please see pages 5 and Bellanca. Beattie & DeLisle Legal Counsel 15 for more information on these Michele MacWilliams exciting events. Metro Media Associates, Inc. Lots of work has taken place Public Relations, AFD Food Beverage Report Editor throughout the summer to make these Karoub Associates events a big success. Be sure and Legislative Consultant plan ahead to make these important Gadaleto & Ramsby Health Care AFD dates part of your upcoming Pat Gregory schedule. Fall will be here before we Follmer, Rudrewicz & Co. P.C. know it. ------CPA AFD Food & Beverage Report, August 2000...... 3 Guest Editorial Calendar August 10 - 15 American Cheese Society National Conference Sonoma County, Preventing cross contamination (262) 728-4458 August 16 key to keeping foods safe AFD Senior Picnic Belle Isle, Detroit (248) 557-9600 cross contamination in retail food preparation spaces must be present to facilities. The Michigan Department segregate raw foods from ready-to-eat September 27 - 28 of Agriculture (MDA) has a list of foods; food storage areas must AFD/Beverage Journal Holiday minimize potential exposure to training programs that is currently Show “Stocking Stuffers” environmental sources of available via MDA’s Web site at Burton Manor, Livonia www.mda.state.mi.us/food/mufiy contamination (example: no foods stored in toilet facilities). (248) 557-9600 foodservice.html. The Food and Drug Operators must provide training for October 20-24 Administration’s (FDA) 1999 Food employees on the following Code is also an excellent food safety procedures: proper handling of foods; NACS Show 2000 resource, and it identifies the legal cleaning and sanitizing; meeting New Orleans, regulatory standards for retail food requirements for personal health and 1-877-684-3600 establishments. The Code’s Annexes hygiene. Operators must establish clear October 27 contain valuable information procedures that employees understand AFD ’s Toast Michigan: Savor By Katherine Fedder, Director, including: references to scientific Wines Food and Dairy Division studies that relate to Code and follow. These include: hand the Flavor o f Michigan Michigan Department o f Agriculture requirements (Annex 2) as well as washing (the Code specifies when and Excalibur, Southfield how to wash hands); minimizing bare explanations for the public health (248) 557-9600 Clean, well-organized food reasons behind many of the hand contact with ready-to-eat foods; preparation areas not only give requirements (Annex 3). *See below Exercising good personal hygiene. A November 12-15 customers a favorable impression of for information about how to obtain a work smock can easily become Retail Store Development your facility, but also play an contaminated if worn to the toilet copy of the Food Code. Conference important role in controlling cross room or while emptying the trash; As a reminder, Michigan’s new San Diego, CA contamination — the unintended food law clarifies Food Code cleaning and sanitizing procedures (preferably written) for all food (202) 452-8444 transfer of harmful substances to requirements regarding bare-hand www.fmi.org food. There are three categories of contact with ready-to-eat foods, preparation areas and contact food contaminants that can be consumer advisories, plan review for surfaces; separating raw foods and transferred to food: physical agents grocery and convenience stores, and ready-to-eat foods during storage, Statement of Ownership such as glass or metal fragments; preparation, holding, and display; demonstration of knowledge. (MDA The AFD Food & Beverage Report chemicals; microbiological organisms will soon be sending each licensed monitoring employees to ensure that (USPS 082-970; ISSN 0894-3567) is like viruses, bacteria, and parasites. published monthly by the Associated food establishment a newsletter established procedures are being Because microbiological followed. Food Dealers of Michigan at 18470 highlighting these changes.) W. 10 Mile. Southfield, Ml 48075 organisms are the root of most Specific requirements: Material contained within The AFD foodbome illnesses, this article will 1999 FDA Food Code Store equipment and utensils in Food & Beverage Report may not be focus on ways food retailers can ways that prevent contamination reproduced without written permission requirements from the AFD. prevent this type of contamination. (between uses, and while food The 1999 Food Code is adopted as Raw foods of animal origin (meat, preparation is taking place); use The opinions expressed in this maga­ part of Michigan’s new food law and poultry, shell eggs, and seafood or packaging, covered containers, or zine are not necessarily those of the takes effect on November 8, 2000. It AFD, its Board of Directors, staff or fish) naturally contain large numbers wrappings to protect exposed foods; identifies key steps retailers can use members. Bylined articles reflect the of potentially disease-causing clean food containers that are visibly opinions of the writer. to prevent cross contamination. microorganisms. A common way soiled before opening; thoroughly Important sections include: POSTMASTER: Send address microorganisms are transferred is wash raw fruits and vegetables before Section 2-103.11 of Chapter 2 changes to AFD Food & Beverage from raw meats to ready-to-eat foods use; separate unwashed fruits and Report, 18470 W. 10 Mile, Southfield. (Management and Personnel) or other meats that will not be cooked vegetables from ready-to-eat foods; Ml 48075 identifies the food safety to sufficient temperatures to kill the store products that are being held for responsibilities of food management. ADVERTISERS: For information on microorganisms (cooking credit, redemption or return to a advertising rates and data, call AFD. Section 3-302.11 of Chapter 3 temperatures are outlined in Chapter 3 distributor (damaged, spoiled, or Ray Amyot. 18470 W. 10 Mile, South­ (Food) identifies how to prevent field. Ml 48075, (248) 557-9600 of of the 1999 Food Code). However, recalled foods) in designated areas contamination of foods and food (517) 386-9666 there are other sources of that are separated from foods and ingredients. contamination such as unclean food contact surfaces; prevent “case AFD works closely with the following The following is a short checklist employee hands or clothing and cuts” in food containers that are soft associations: of some of the requirements that unclean food contact surfaces packed. relate to controlling cross (equipment/utensils). Because cross MDA encourages you and your contamination: contamination can occur from food establishment to do a self General requirements: multiple sources, there is no single, inspection using these check lists Operators must ensure that the easy step food retailers can use to today! It will help you assess how facility is adequate in terms of size control it. Therefore it’s up to store your food operation stacks up against and design for the food operations operators to ensure preventative Michigan Food Law 2000 and FDA present. This may include: practices are used routinely. 1999 Food Code requirements and Plan review (voluntary for some Food safety information may help you to identify potential grocery and convenience stores) is weak links in this important area of FOOD MARKETING INSTITUTE of Convenience Stores and training programs strongly recommended before starting your food safety program. As always, Several excellent food safety a business or adding new types of please feel free to contact us toll-free training programs are available that food operations; by calling (800) 292-3939 or visiting identify practical steps for preventing Sufficient cold holding and food our W eb site at www.mda.state.mi.us. FOOD INDUSTRY ASSOCIATION EXECUTIVES 4 ...... AFD Food & Beverage Report, August 2000 Illegal signs, from front page advertise a “Grand Opening” or ‘"Toast M ichigan" special seasonal sale can still obtain a permit for temporary signs or banners from the Buildings and Safety Engineering Department. However, at AFD’s wine tasting the permit for such signage is only valid for fifteen (15) days and not Mark your calendars! Friday, available for tasting. In addition, wineries. Many people don’t know more than two (2) times a year. The October 27 is A FD ’s new wine- every guest will receive a souvenir about the great wines that our state size of the temporary sign or banner tasting event, Toast Michigan: wine glass as a remembrance of the produces. This event is designed to can’t be more than ten percent (10%) Savor the Flavor of Michigan evening, and a special offer from showcase our best,” says Joe Sarafa, of the area of the building facade next Wines. Excalibur Restaurant. AFD president. He adds that a portion The night of wine, specialty hors to a public street. Wineries participating in the event of the proceeds will benefit Forgotten On the fifth anniversary of this d’oeuvres and music by Trinidad include: Bowers Harbor Vineyard, Harvest. ordinance, Detroit is again awash in Tripoli Steel Band will be hosted at Chateau Chantal, Fenn Valley Tickets are just $25 per person and illegal temporary signage— not the the Excalibur Banquet Hall in Vineyards, L. Mawby Vineyards and are available by calling AFD at (248) banners that were the problem in Southfield from 5:30 to 9:30 p.m. Zafarana Vineyards. 557-9600 or 1-800-66-66-AFD. 1994, but bottle-shaped signs Over 50 Michigan wines will be “Michigan has some wonderful strapped on to poles, cigarette signs on sidewalks, and outdoor beer ads. The concerns over the illegal signage is much the same as in 1994, but the consequences are now even greater. Since the 1995 ordinance, City Council enacted a “Protection of Minors” ordinance that has generally made it illegal to advertise alcohol or tobacco products within one thousand (1.000) feet of schools, parks and playgrounds, child care centers, libraries and similar places where Where is Hargaritauille? children congregate (Ordinance No. 28-99). There's no passport required. And you don’t have to be a navigator to get there Although it may be distributors There's a seat with your name on it at a thatched roof bar perched on the edge of that push the signage, it will be the a turguoise sea. Where is Margaritaville? It's in your mind. It's in this tequila retailer who is ticketed and taken to court for violations. If inspectors had Hi casa es su casa. been present at one east side gas station they could have written one violation for displaying a sign without a permit, a second violation for placing the sign on a Public Lighting Department light pole, and a third because the sign was advertising cigarettes less than one thousand (1,000) feet from a school. And that was just one of several illegal temporary signs on the premises that could have been ticketed. It’s time to take stock again in the

appearance of our commercial strips Who's To Blame Margarita and to make some quick changes to Search for your lost shaker of salt. improve the look of the City: Rub rim of glass with lime wedge and dip into salt Distributors should stop putting Fill shaker with Ice their retailers at risk and should stop Add 1 oz Margaritaville Oro Tequila providing illegal temporary signs. 1/2 oz; triple sec and juice from two lime wedges M e Retailers should take down any Flip shaker in m id-air tw ice. sign for which they did not get a Strain into glass o v e r or savor straight up. Your call. One permit before they are ticketed and sip and you'll know should decline to accept any more of the signs from distributors. City inspectors should enforce the temporary sign laws vigorously and How Available in Michigan! fairly.

Customers should applaud and Oro B a s e On-pr e m is e Off-Premise S h e lf Blanco Base On-Premise Off-Premise S h e ll patronize businesses that comply with S ize C o d e P rice P ric e P rice P rice C o d e P rice P rice P rice P ric e the signage laws and report those that 50 ml 8726-3 $ 1 .10 $1.03 $1.05 $1.24 375 ml 8525-0 $645 $6.13 $625 $7 35 do not. 200 ml 8546-0 $4.20 $4.00 $4.06 $4.79 750 ml 8537-0 $12.25 $11.64 $11.87 $13.95 If you are interested in more 375 ml 8556-0 $7.85 $7 45 $7.60 $693 50 ml 8516-3 $95 $.91 $ .93 $ 1 .09 $15.99 information about the ins and outs of 750 ml 8569-0 $14.05 $13.34 $13.60 TO ORDER CALL $16.67 $1699 $19.97 Detroit’s signage laws, feel free to 1 L 8613-0 $17.55 1-888-NWS-MICH OR 1-888-MIC H -N W S $25.51 $29.99 call the City Planning Commission, 1.75 L 8620-0 $26.35 $25.02 697-6424 642-4697 (313) 224-6225. If you would like to report illegal signage, call the Buildings and Safety Engineering Department, (313) 224-3212. AFD Food & Beverage Report, August 2000...... 5 Guest Editorial

Assistance from the Office of Financial and Insurance Services

by Frank M. Fitzgerald, Commissioner, Office o f Financial Services is charged with providing settlements, we can serve as a have arbitration clauses written into and Insurance Services the most fundamental consumer resource if an insurance claim is them. Insurance is an intangible but protection: making sure that denied or if you have problems Next, remember the Office of indispensable product. Whether you companies have financially sound settling a claim. Financial and Insurance Services-our purchase health, homeowners, auto, or practices and will be there to pay your If you disagree with a settlement consumer services staff is available to business liability coverage, it is claim. offer, the most important thing that review contract language, assist in purchased with the hope it will never Perhaps as important, the you can do is to read your policy. understanding coverage and determine be used. Michigan Office of Financial and This will provide you with an if a claim is being handled reasonably. When you need insurance to cover Insurance Services can assist retailers understanding of your coverage and The Office of Financial and Insurance a claim, you want to receive the in a claims situation. While it is not could also give you direction on Services Consumer staff can be coverage you purchased. Statutorily, possible to determine or dictate what where to take your grievance. For reached at 1 -877-999-6442 or via the the Office of Financial and Insurance retailers should accept for instance, some commercial policies complaint form on the web at www.cis.state.mi.us/ins.

Two food industry associations form Internet Trading Exchange Food Distributors International (FDI) and the Food Marketing Institute (FMI) have agreed to form a business-to-business online exchange for non-consumer goods and services. This service is designed for FMI’s and FDI's foodservice and wholesaler members, along with the retailers they serve, including independent operators. Together the two trade associations and their retail, wholesale and foodservice members represent the approximately $800 billion North American food industry. As part of the strategic business plan, broader applications within the industry will be developed after discussions with the global retail exchanges now being formed. The two associations plan to launch the site later this summer. FMI and FDI have selected IBM as their solutions coordinator. IBM will manage the activities of the alliance partners, including i2 Technologies, Inc. (ITWO), and Ariba, Inc. (ARBA), as well as participation of viaLink Co. (VLNK ), and the Ernst & Young consulting company. Collectively, this group currently operates in excess of 150 Internet exchanges across multiple industries. “E-markets are exploding. This 2 LOCATIONS alliance between FMI and FDI gives its members the opportunity to use Metro Detroit Flint & Saginaw Internet technologies to create new cost structures, to open new distribution channels, to transform Suburban News Suburban News competitiveness and change the industry,” said Christian Nivoix, 24808 Romano 2320 W. Pierson general manager. IBM’s distribution Warren, MI 48091 Unit 15 sector, the part of IBM focused on the MAGAZINES retail and consumer goods industries. 810-756-4000 Flint, MI 48504 “That’s the real impact of the Internet,” Nivoix said. Fax 810-756-4060 NEWS 810-785-4200 “We see this as a dynamic Wholesale Distributor electronic marketplace for our Fax 810-785-4100 industry,” said FDI President John R.

See Internet trade, page 31 your business. Use yours to manage it.

What does it take to become a vital energy resource for a diverse community? A willingness to listen, learn, and become involved. At Detroit Edison we’re doing all three.

Our Ethnic Marketing group understands that small business owners have unique needs. That’s why we’re listening to local entrepreneurs and learning about their specific needs - to help them maximize electricity efficiency and minimize costs.

We’re also working with large- and medium-sized businesses and we’re educating business owners about electric utility industry deregulation, so that they understand their options in the future.

But our involvement stretches beyond the bottom line. We’re supporting cultural diversity by dedicating resources to educational and civic groups and organizations. It’s all part of our efforts to provide personalized service to a very valued group of customers.

At Detroit Edison, we’re excited about becoming more involved in multicultural business communities. We’re waiting to hear from you. If you have an energy-related issue or concern that you’d like to discuss with a representative, contact our Ethnic Marketing group today. Call 1.888.777.6996.

Detroit Edison

A DTE Energy Company

www.detroitedison.com

AFD hood & Beverage Report, August 2000...... 7 Convenience Store Corner Convenience store merchandise sales weaken slightly for 1st quarter

Despite another strong increase in QSOI was instituted in 1992. “As is figures, the QSOI also found that The Quarterly State of the Industry merchandise sales — 9.2 percent for usually the case, higher prices at the labor is an overriding concern of Report is published each quarter by the first quarter o f 2000 compared to pump meant lower margins for retailers. “Low unemployment has NACS, with data assembled by Arthur the same quarter in 1999 — the retailers as consumers resist the higher meant a small labor pool to draw Anderson LLP. The report can be convenience store industry's overall prices and retailers aggressively try to from and higher costs to retain accessed on line at www. merchandise sales may be slowing hold on to their customers by employees. Retailers expect wage cstorecentral.com/register/resource/ down, according to the National accepting lower margins,’ said rates to be a problem, and hiring, resource/qsoist2000.html. Association of Convenience Stores’ Swanson. keeping, and training new employees (NACS) 1st Quarter State of the In addition, merchandise margins to be difficult for the foreseeable Bogus FedEx checks Industry (QSOl) report. also dropped 0.5 percent, the fifth future,” said Swanson. Other retailer circulated The report, released July 7, found straight quarter of decline. “Much of concerns included tight motor fuels that for the first time in more than a this decline is due to lower cigarette margins, rising interest rates, credit Federal Express has informed AFD year the increase in convenience margins, as prices have surged in that card fees, and competition from that approximately 50 convenience stores' merchandise sales was not in category," noted Swanson. He added, hypermarkets. stores have fallen victim to bogus double digits. “These double-digit however, that this quarter's margin Perhaps because of these concerns, Federal Express payroll checks. sales gains of 1999 were due, in part, decline is the lowest of the last five overall, retailers are less confident Women dressed in Federal Express to higher cigarette prices as a result of quarters. about the next 12 months. Survey shirts have asked to cash what appears the 1998 tobacco settlement,” said In spite of the lower margins, gross respondents reported that they are to be their payroll check. Counterfeit checks have been drawn to Tina Bob Swanson, NACS’ director of profits increased by 6.6 percent for the less optimistic about the industry’s Ballard, check number 03258467; research and statistics. quarter, the best since the second future, as well as their own NACS’ quarterly State of the quarter of 1999. Merchandise profits com pany’s, compared to the Angie McIntosh, check number Industry reports are based on retailer rose a strong 8.7 percent, the eighth responses from the previous quarter. 03256428; and Carol Martin, check number 03253457. responses to questions about sales, consecutive quarter of at least 6.2 On a seven-point rating scale, If someone tries to cash one of profits, and trends in the industry. percent growth in merchandise profits. retailers rated their company's The 1st Quarter 2000 SOI reported Meanwhile, motor fuel profits rose a business prospects a 5.1, compared to these checks, Federal Express asks you to detain the subject, and call 911 that gasoline margins dipped 2.6 miniscule 0.1 percent, solely on the 5.39 last quarter. Meanwhile, the to have the person arrested. If you percent for the quarter, in spite of a strength of a 3.0 percent increase in overall industry’s prospects were have any questions, you may also call 42.6 percent increase in motor fuel m otor fuel sales. rated at 4.69, a drop from the 4.88 Kevin Talley in FedEx Security at prices, the largest increase since the In addition to sales and profit measured last quarter. 1-888-751-5172. Free Online Beverage Ordering Services Easy to use • Easy to learn

• Free Service to Retailers •One-Stop Shopping Increases Efficiency • Order at Your Convenience Ordering pnprocess •Customizable Order Guide before Eskye • Printed Order Record to Verify Pricing and Delivery • Delivery From Current Distributors • Links to Industry Information ' Promotions and Programs Notifications

Visit us at the esk y e . com AFP Holiday Ordering process Beverage Show, with Eskye Booth 142 esk y e . com •eFFECTIVE • eFFICIENT • e BUYING "Your single source Internet-based ordering system for beverage alcohol." To find out more call us directly at (877) ESKYE COM or visit us at our website at www.eskye.com

8...... AFD Food & Beverage Report. August 2000 THEY SAY GENTLEMEN ARE MAKING A

COMEBACK

(HOW CONVENIENT FOR US)

SALES ORDER ENTRY CUSTOMER CARE 313-276-5400 1-665-440-0200 1-666-990-0600

Johnnie Walker® Black Labe® Blended Scotch Whisky. Imported 12 year old. 40% Alc./Vol. (80 Proof) © 1997 Schieffelin & Somerset Co., New York, NY

AFD Food & Beverage Report, August 2000...... 9 Legislative Update

estate taxes over 10 years, the Senate took up a Republican-backed proposal Senate votes to block Estate tax, from front page also opposed by Clinton that would OSHA Ergonomics regulation said he would veto the tax cut that he eliminate the so-called marriage penalty by raising the standard Three Democrats, Breaux (LA), said would benefit about 3,000 The U.S. Senate voted 57-41 to deduction and expanding the 15 Lincoln (AR), and Hollings (SC) families annually. join the House and block funding for percent and 28 percent tax brackets. joined 54 Republicans in passing the “While I am willing to support the proposed OSHA ergonomics (See related story below.) amendment. Senator Specter () targeted and fiscally responsible regulation. Retail and wholesale The Senate action on the two tax was the sole Republican to vote legislation that provides estate tax grocers were front and center in cuts, which together would cost the against the amendment. relief for small businesses, family fighting for passage of Senator federal treasury more than $350 In spite of President Clinton's farms and principal residences, the Michael Enzi's (R-WY) amendment billion over 10 years, lays the threatened veto, the food industry estate tax repeal passed by the Senate while attending the Public Affairs groundwork for a political skirmish will continue to encourage members is a budget-busting bill that provides a Assembly, sponsored by National over taxes as the two parties prepare of Congress to ultimately pass into huge tax cut for the most well off Grocers Association (NGA), Food to hold their August conventions to law the prohibition of OSHA from Americans at the expense of working Distributors International (FDI) and nominate their presidential promulgating the ergonomics families," Clinton said. Food Marketing Institute (FMI). candidates. standard. After voting to phase out gift and Senate passes Verizon Wireless marriage tax cut Trumpeting the growing budget surplus as a signal to slash the tax Work. Play. Live. burden, Republicans won Senate passage on July 18 of a bill that would eliminate the “marriage You decide penalty” by cutting taxes for virtually every married couple. Shrugging off President Clinton’s in what order. veto threat and Democratic criticism that the bill is skewed to the wealthy, S im p licity and peace of mind. I t's what everyone wants. the Senate voted 61-38 for the That's the beauty of Verizon Wireless. With great service legislation that would reduce government revenue by $248 billion plans and knowledgeable representatives, you can balance over 10 years. both work and play. Join in. Differences must still be worked out with the House, which passed a 10-year, $182 billion version earlier this year, but GOP leaders expect an agreement soon. As of press time. Republicans planned to send the bill to Clinton before the Republican National Convention begins on July about our special NEW rates for 31. This would force a high-profile veto confrontation. Republicans may Associated Food Dealers also hold back a bill repealing estate taxes (see story above) until members and their employees! September so the issues don’t get muddied for the public. The Congressional Budget Office now projects an enormous budget surplus of $2.17 trillion over the next decade, far above previous forecasts. The bill would: Endorsed By: • Gradually enlarge the 15 percent and 28 percent income tax brackets for married couples so they are roughly twice the size of those for ASSOCIATED FOOD DEALERS single people. The House bill only OF MICHIGAN widens the 15 percent bracket. • In 2001, boost a couple’s Call Verizon Wireless today at 1-888-772-2355 standard income tax deduction so it is equal to those of two single people. In 2000 dollars, that’s an increase from $7,350 to $8,800. • Raise by $2,500 the income cap 1-888-772-2355 for couples who want to claim the earned income tax credit. join in. v e r iz o n wireless • Ensure that certain personal credits, including the $500 per-child tax credit, don’t ensnare taxpayers in the complex alternative minimum tax. 10...... AFD Food & Beverage Report, August 2000 Metro-Detroit Urban Scholarship Program Money Raised Here - Stays Here! For more Information on how you can participate C a ll: 1-888-552-0912 or 248-557-4713 Visit at our website: www.budweiser.com

©2000 ANHEUSER-BUSCH, INC., BREWERS OF BUDWEISER® BEER, ST. LOUIS, MO AFD Food & Beverage Report, August 2000...... 11 Minimum wage Could Democratic Plan For Estate Tax Reduction issue is on Be Better For Small Business? Kennedy’s A report in the New York Times relief slowly between now and 2009. businesses and 300 farmers would agenda states that while small business The difference, apparently, is that have owed the tax.” The Times says Senator Edward Kennedy (D-) owners overwhelmingly support the the GOP supports repealing the tax that 95 percent of the farmers who has stated his intention to use every estate tax repeal plan backed by completely, albeit slowly; the paid estate taxes that year would have effort possible to amend Senate Congressional Republicans, they are Democrats don't want to repeal the been exempt under the democratic legislation with a minimum wage ignoring the legislation backed by tax, but rather adjust its parameters. plan; 88 percent of the small business increase of $1.00 per hour over two President Clinton and Congressional However, the Times notes, "had the owners who paid estate taxes would years. Democrats. The irony, according to Democratic plan been law in 1997, have been exempt. This means that the Senate the Times, is that the democratic plan the last year for which estate tax Republicans say that the estate tax leadership will be forced to contend would exempt almost all of them from return data is available from the is so complicated that complete repeal with the senator's efforts to amend the tax starting in 2002 - as opposed Internal Revenue Service, the estates is the only legitimate option. future legislation. to the GOP plan, which phases in of fewer than 1,300 closely held Earlier this year the Senate passed a $1.00 increase over 3 years. A vote on a minimum wage increase could come at any time that the Senator deems it to his political advantage. Group Savings WIC letter G roup Savings circulated During the Public Affairs Assembly, retail and wholesale grocers petitioned their Individual Service representatives to sign onto a letter by Representatives Howard P. McKeon (R-CA) and Matthew Martinez (D- CA) that opposed USD A issuing a Individual Service final rule to limit the number of retailers eligible for the Women, AAA Michigan is pleased to announce a partnership with the Infants and Children (WIC) program. AFD which allows us to offer you and your employees the The letter states, “This proposed rule will limit the number of retailers opportunity to join the state’s leading membership organization, eligible for the WIC program, thereby limiting competition and restricting at a special group rate. Benefits include: access to program benefits by those most in need. The proposal will For Your Business needlessly burden the WIC program, harm recipients, punish innocent * A highly-perceived employee benefit at no vendors, and limit access to this much administrative cost to you needed program.” The National Grocers Association For You and Your Employees strongly opposed the vendor limit proposal in comments it filed with

* Eligibility to apply for group discounted auto and home insurance* USDA and supports the efforts of

via convenient automatic account deductions Representatives McKeon and Martinez to stop the vendor • 24-hour, prepaid Emergency Road Service restriction language that was not passed by Congress. • Free TnpTiks*, TourBooks* and maps, plus member-only values

on cruise and tour packages Get ready for the • Exclusive savings of up to 20% or more at thousands of retailers across Michigan and the U.S. holidays! It’s only August, but the In partnership with holiday season will be here before we know it. Plan to To find out more or attend the AFD/Beverage to enroll your company, Journal Holiday Show, “Stocking Staffers” and you’ll call Judy Shaba at Group be ready for holiday profits! 248-557-9600 Services The Show runs September 27 and 28 at Burton Manor in •Insurance underwritten by Auto Club Insurance Association family of companies. Livonia. See page 15 for more details.

12...... AFD Food & Beverage Report, August 2000 INC SuperSeries”

Process glass, plastic and aluminum all in one machine!

Saves customers time!

More space efficient than a multi machine system!

Quick, easy & simple reports!

Uses standard 120 volt wall outlet!

Saves store money... quick return on investment!

3rd party pick-up compatible! KANSMACKER, IIMC Supporting Michigan 2 22 0 Raymond Drive grocers for over 15 years! Lansing, Michigan 48906 Phone 1-800-379-8666, ext. 101 • Fax 1-517-374-7595 Ask for NICK YONO

AFD Food & Beverage Report, August 2000...... 13 News Notes General Mills to buy Pillsbury Philip Morris agrees General Mills Inc. said it plans to buy Pillsbury from British food and to acquire Nabisco beverage group Diageo Pic in a $5.35 billion all-stock deal that further Philip Morris Cos., in a deal that owner of Kraft Foods, is considering consolidates the food industry and will significantly bolster its food an initial public offering of less than bolsters the cereal giant’s leverage business and have far-reaching 20% of its food business. Such a with supermarkets. consequences for the broader decision would be of huge General Mills reached a definitive industry, has agreed to acquire significance, since it could pave the agreement to buy Pillsbury from Nabisco Holdings Corp. for $55 a way for an eventual split of Philip share, or $14.91 billion, plus the Diageo in a deal that also includes Team “Ball Park” gets ready Morris’s food and tobacco businesses. assumption of $4 billion in debt, the Pillsbury’s debt of $5.1 billion. An IPO of less than 20% allows Under the deal, Diageo will retain to tee up at the D.A.G.M.R. Wall Street Journal reported. companies to eventually spin off the an initial 33 percent stake in the Golf Outing on June 6 In a related move, Philip Morris, remaining stake to shareholders. merged business, which will have annual sales of $12.8 billion. General Mills said it plans to sell Pillsbury’s North American dessert business and Green Giant canned vegetable line by the end of fiscal 2002. General Mills, said the deal with Pillsbury should help achieve cost savings of $25 million in fiscal 2001. It expects to save $220 million in 2002 and $400 million by 2003. Combining forces will enable General Mills and Pillsbury to achieve faster growth than either could accomplish separately. General Mills Chairman and Chief Executive Steve Sanger said. The merger could give General Mills more leverage with increasingly bigger food retailers and bolster its competitive position in the rapidly consolidating sector, analysts said. The deal could also spawn more mergers in an industry that has already seen Unilever announce its intent to buy Bestfoods for $20.3 billion and Philip Morris make plans to buy Nabisco Group Holdings, the largest U.S. cracker and cookie maker, for $14.9 billion. Analysts said companies such as General Mills’ closest rival, Kellogg Co., H.J. Heinz Co., Campbell Soup Co., and Quaker Oats Co. could all be looking for partners.

Featuring: Potok to buy • CHESTER FRIED CHICKEN Gann Bros. The most complete chicken An acquisition by Potok Packing program available. Co. and Detroit based Gann Bros. Farm Style Brand Sausage Co. is in the works. Max Fynke, president of • ELECTRO FREEZE Potok reports that until the Self serve ice cream, yogurt and slush. completion of the deal the two companies will operate as a joint • ROYALE venture, and there will be no layoffs. Gann Bros’ Michigan Avenue Featuring the first maintenance free plant will be included in the deal. slush program. Potok already owns Alcamo’s. Meat King, Kennedy’s and Virginia sausage brands. Fynke became interested in Gann Bros, because it was the only sausage maker in the Detroit, Ml Detroit area to use fresh-cut pork in 313.369.1666 * 800.899.9324 fresh sausage, a type known as hot­ Grand Rapids, Ml • 616.243.8863 boned. a whole pork sausage

14...... AFD Food & Beverage Report. August 2000 Associated Food Dealers of Michigan Working hard for the Food and Beverage Industry for over 84 years!

AFD Food & Beverage Report, August 2000...... 15 News Notes Customer awarded Ketchup goes green ---- $273 for 10-cent overcharge

The Year 2000 has brought with it hot dogs and burgers with its Steven Wrathell taught a stubborn 43rd District Court. many changes, but few of us expected unexpected color and plastic bottle, gas station manager an expensive The Michigan Pricing and this one. H.J. Heinz Co. has which squirts a stream so thin kids lesson about consumers’ rights. Advertising of Consumer Items Act reintroduced ketchup, green ketchup can draw with it. Have no fear the In June a Madison Heights judge says anyone overcharged can collect that is. “Green is gong to be a shocker flavor stays the same even if it is the awarded him $273 for being 10 times the difference, up to $5. If for a lot of adults. But kids don’t color of spinach. overcharged 10 cents for a burrito for the retailer refuses, the consumer can have those hang-ups,” said Casey The 131-year old food company the Quik Stop Total at 12 Mile and sue in small-claims court for $250, Keller, the point man on a world wide last year embarked on a new ketchup John R. plus fees. Wrathell, 40, said he hopes push to reintroduce the condiment as a campaign after its share of the US. Steven Wrathell, a certified public this educates other consumers about hip part of everyday meals. ketchup market dropped to about 43 accountant for Sterling Heights, said their rights and teaches retailers about Kids eat more than half of all percent in the late 1990s. Heinz a scanner charged him 59 cents for a their responsibilities. “All he had to ketchup in the United States and it is targeted teens, advertising in shows 49-cent burrito. do was give me a dollar,” Wrathell Heinz’s hope that this consumer such as “Dawson’s Creek” and “Party Wrathell was refunded the dime, said. segment will enjoy decorating their of Five." but not the $1 he was entitled to under state consumer law. He sued in Class action lawsuit begins against Visa-MasterCard The Department of Justice trial began against Visa and MasterCard last month. The government contends that Visa and MasterCard’s governing agreement, which allow banks that sit on their boards to issue a large number of cards on one another’s networks, has reduced competition, and stifled the rollout of products that would benefit consumers. The outcome of this trial could have implications for the way Visa and MasterCard conduct their respective businesses and for the class-action lawsuit filed by retailers against Visa and MasterCard. The class action lawsuit could entitle convenience store retailers to sizeable damages. Since convenience stores have low average ticket prices and high volumes of business, this SHERWOOD FOOD industry is likely to pay a greater portion of revenues. If Visa and DISTRIBUT0RS MasterCard are found to be anti­ competitive, convenience store retailers may be in a position to gain a Would like to greater portion of the damages.-NACS USDA to require congratulate the 2000 labeling of fresh meat The USDA will propose that AFD Scholarship packaged meat and poultry products sold in retail stores must come with nutritional labels. Retailers currently winners, and wish voluntarily post nutrition facts on beef, veal, pork, lamb, chicken and turkey. USDA’s latest survey shows them all great that less than 60% of retailers surveyed did post the nutritional labeling for meat; therefore, it is success! USDA’s intention to propose mandatory nutritional labeling on fresh meat and poultry products. A proposed regulation has been submitted to the Office of Management and Budget for approval before publication. The regulation SHERWOOD FOODS: could substantially increase the The Midwest’s leading distributor of Meat and Deli Products regulatory burdens and costs on retailers to comply, which was the basis for the original voluntary program to post nutrition information in a single location in meat 1 departments. 16...... AFD Food & Beverage Report, August 2000 AFD Food &. Beverage Report, August 2000...... 17 Wal-Mart’s problems could someday Gentle man breaks, and kills be yours Police report that Alexander shot Two U.S. Department of for three generations and Alexander It’s always fun to see the big kid and killed three health inspectors Agriculture and one state inspector felt that he was being unduly harassed on the block get some lumps, and while a fourth fled. He turned were killed last month by the owner by inspectors. A sign left outside the many community-focused plant reflected his feelings of himself into the authorities a short of a San Leandro, California sausage independents have probably gotten a factory. Stuart Alexander, 39, had frustration. “To all our great time later. wry smile out of Wal-Mart’s recent complained that he was being customers: The USDA is coming into sparring sessions with the United harassed by the government over our plant harassing my employees and Farmer Jack grows Food and Commercial Workers. But, health violations. The plant had just me, making it impossible to make our Farmer Jack Supermarkets has welcome as may have been the site of recently reopened after being cited for great product,” wrote Alexander. acquired three Felice Food Markets Wal-Mart under assault by the not properly heating sausage that was “Gee, if all meat plants could be in in the metro Detroit area. The UFCW, those smiles might best be labeled as fully cooked and for not business for 79 years without one stores in Waterford Township, accompanied by some thoughts about using expiration dates on meat complaint, the meat inspectors would Sterling Heights and Macomb not have jobs. Therefore, we are the union’s strategy, as it was outlined products. Township opened as Farmer Jack The plant had been in the family taking legal action against them.” recently in a report for N.G.A. by Supermarkets in July. Seyfarth, Shaw, Fairweather & Geraldson, N.G.A.’s labor counsel which has offices in 10 cities and has represented management in labor and Feel the Power! employment law since 1945. Earlier this year, meat cutters at a Wal-Mart superstore in Jacksonville, Texas became the first US. Wal-Mart Now you can employees to vote in favor of union representation by the United Food and Commercial Workers. That “first” Choose AFD as Your was the union’s first victory in what it has acknowledged is a nationwide organizing campaign focused on the Electric Provider! meat departments in 23 Wal-Mart stores. W hy the meat department? It Thanks to AFD’s efforts, seems evident that the UFCW targeted the meat department for this members could save 20% major campaign against Wal-Mart for two reasons: on their Electric Bill! 1. Defining the bargaining unit: The AFD has established an electric-buying greater the similarities in hours of work; job duties; compensation; tools, partnership with Nordic Electric/IQ Solutions to equipment, and skills; overall improve your bottom line. To see if you qualify, supervision; production methods; and transfer policy between departments, fill out the form below. Attach a copy of your the more likely a department is to be current utility bill, then mail or fax to: targeted as a bargaining unit. AFD Electric Program 2. Predisposition of meat employees: Even in non-union work 18470 West Ten Mile Road environments, most skilled employees Southfield, Ml 48075 have previously worked in a union environment. If an employer does not have an effective employee relations Business Name:. program, those who have worked in a union environment are apt to be more pro-union and proactive for the union. Business Type:. Wal-Mart’s counterattack in the Battle of Jacksonville was, just two Contact Name: weeks after the vote for union representation, to announce that it Address: was switching to pre-packaged, case- ready meat. The UFCW, of course, City/State/Zip: filed an unfair labor charge with the NLRB over this maneuver by Wal- Mart, and that filing awaits a ruling Phone:. Fax: by the Board. Whatever the outcome, nonunion E-mail:. retailers should watch this situation carefully and assess their current Electric Utility: associate relations program and IQ Solutions will require a 12-month usage history of all dedicated management, to ensure that your electric accounts to complete a saving analysis. they have a positive work environment. For all retailers, with the Wal-Mart and Kroger forays into case-ready beef, is it time to start NORDIC ELECTRIC reviewing case-ready beef s potential T'-N G A __ 18...... AFD Food & Beverage Report, August 2000 Production needs new equipment Accounting wants positive cash flow

... And you forgot your referee’s hat

Now you can give them both what they want. Business Leasing from Michigan National lets you boost productivity while managing cash flow. To learn more or to apply today, call George Caracostas at (248) 473-2785 or Cindy Jensen at (248) 615-5863. Michigan National www. Michigan National. com

AFD Food & Beverage Report. August 2000...... 19 HERE ARE 25,000 REASONS FOR YOUR CUSTOMERS TO PLAY THE DAILY 3&4!

is the latest second chance Mid-Day and two non-winning Evening the Michigan Lottery tickets are required to enter. Entries can is. One hundred thirty be mailed in, or dropped off at any $500 every week for six of the convenient drop boxes. See the players who win $500 will official entry forms for locations. Players into the grand prize drawing can enter as many times as they want will be televised on the through September 1, 2000. Encourage your September 9, 2000. customers to play the Daily 3 & 4 Games ings. Two non-winning often for a chance to hit big for $25,000. 26, 2000 5 Than You Can Afford To Lose, You've Got A Problem. Call 1-800-270-7117 For Confidential Help. Daily 3 Odds: Straight: 1 In 1,000; 3-Way Box: 1 1n 333; 6-Way Box: 1 1n 167. Daily 4 Odds: Straight: 1 In 10,000; 4-Way Box: 1 In 2,500; 6-Way Box: 1 In 1,666; 12-Way Box: 1 In 833; 24-Way Box: 1 In 416.

7/00

20...... AFD Food & Beverage Report. August 2000 Coca-Cola B ottling Company o f Michigan Coca-Cola B ottling Company o f Michigan Coca-Cola B ottling Company o f Michigan Coca-Cola B ottling Company o f Michigan Alpena Sales Center Auburn Hills Sales Center Bay City Sales Center Detroit Sales Center 171 North Industrial Highway 8 8 0 Doris Road 2500 Broadway 1600 East Grand Blvd. Alpena. Ml 49707 Auburn Hills, Ml 48 326 Bay C ity. M l 4 6 7 0 6 Detroit. Ml 46211 (517) 356-6115 (246) 373-2653 (517) 695-6537 (313) 571-2250

Coca-Cola B ottling Company o f Michigan Coca-Cola B ottling Company o f Michigan Coca-Cola B ottling Company o f Michigan Coca-Cola B ottling Company o f Michigan Flint Sales Center Grand Rapids Sales Center Kalamazoo Sales Center Lansing Sales Center 2 6 0 3 Lapeer Road 3741 Patterson Avenue 216 Peekstock Road 3300 South Creyts Road Flint. Ml 46503 Grand Rapids. Ml 49512 Kalamazoo, Ml 49001 Lansing. Ml 46917 (610) 234-4606 (616) 942-6360 (616) 343-1277 (517) 322-2600

Coca-Cola Bottling Company o f Michigan Coca-Cola B ottling Company of Michigan Coca-Cola B ottling Company o f Michigan Coca-Cola B ottling Company o f Michigan Madison Heights Sales Center Mount Pleasant Sales Center Petoskey Sales Center Port Huron Sales Center 32500 North Avis 606 South Adams 1664 Harbor Springs Road 1606 Dove Street Madison Heights. Ml 48 071 Mount Pleasant. Ml 48 8 58 Petoskey, Ml 49770 Port Huron, Ml 46060 (246) 565-1246 (517) 773-6951 (616) 347-3242 (610) 962-6501

Coca-Cola Bottling Company of Michigan Coca-Cola Bottling Company o f Michigan Coca-Cola B ottling Company o f Michigan Soo Sales Center Traverse City Sales Center Van Buren Sales Center 4 7 6 0 C u rtis Road 1031 H a s tin g s Road 100 Coca-Cola Drive Kinchloe. Ml 4 9 7 6 6 Traverse City, Ml 4968 6 Belleville, Ml 46111 (906) 495-2261 (616) 947-4150 (734) 397-6541 AFD & Beverage Report, August 2000....21 Member Profile

Kraft initiatives are aimed at center store growth

www.kraftplusezserv.coin is another By Michele MacWilliams Internet-based tool that will allow Headquartered in Northfield, retailers to access a secure, Illinois. Kraft Foods is the North proprietary website to quickly American food business of Philip answer custom er questions and Morris Companies Inc. It traces its communicate supply-chain history to three of the most opportunities and customer-service successful food entrepreneurs of the updates. KraftPlus ez-Serv™ will late 19th and early 20th centuries: give retailers immediate, electronic J.L. Kraft, Oscar Mayer and C.W. access to information and services Post. Today, Kraft is the largest customized for their specific packaged food company in the U.S. business needs. and Canada. “KraftPlus ez-Serv is the on-line I spoke to Bob Cole, Detroit evolution of our commitment to regional manager (he actually covers meeting retailer needs,” said Mark all of Michigan) about the new Kraft’s new Pettie, vice president, Category Sales initiatives that Kraft is taking and display unit Management & Strategy at Kraft. how these can aid the retailer. Over “The Internet will build the value of the past 10 years. Cole has seen a combines a dry our Kraft Plus tools by offering great deal of competition working to grocery rack merchandising, purchasing, supply move market share away from and a door chain, accounting and store traditional grocery stores. His operations data with one click of the challenge is to arm the retailer with cooler m ouse.” the ability to survive and thrive in the Kraft will be gathering input from competitive retail food business. a few retailers through the end of Kraft operates through ten 2000 to enhance the site's business divisions: Beverages, effectiveness. When KraftPlus ez- Desserts & Snacks, Boca Foods, E- Serv™ rolls out nationally in 2001,a Commerce, Maxwell House & Post, recipes to deliver convenience and strategies with meal solutions as an retailers will be able to obtain quick Kraft Canada, Kraft Cheese, Kraft one-stop-shopping for busy emphasis. “Only a grocery store can and timely sales updates, review Food Services, The New Meals consumers," says Cole. bring it all together for the consumer. proprietary data to help make Division, Oscar Mayer Foods and Kraft is now testing a display unit, Grouping items is one way that we decisions regarding products and Pizza. Kraft Foods North America that combines a dry grocery rack and can help the grocery store maintain services, and tap into a wealth of employs approximately 36,500 with a a door cooler. This small, 24” x 48” market share,” Cole adds. general business information. X 3,500-person retail sales force. unit operates on 110V and can hold a A strategy that Cole says can help tremendous asset for the day-to-day Kraft offers more than 70 major variety of merchandise, making it a increase market share for the grocery management of center store brands including: Kraft cheeses and one-stop-shopping display for quick retailer is to increase the number of business, the site is password- dinners, Oscar Mayer meats, and easy meals. featured items, so that the store secured and can be personalized for Maxwell House and Nabob coffees, I saw one of these units at the FMI “shouts to the consumer that there is an individual retailer’s or chain’s Post ready-to-eat cereals, Jell-0 Show in Chicago. It was filled with value at the traditional grocery information needs. desserts, Kool-Aid beverages, products that, when purchased store.” together, made an entire meal, Leveraging the information Philadelphia cream cheeses, Always something new Tombstone pizza. Stove Top stuffing including dessert. As an example, obtained from Kraft’s successful mixes and Miracle Whip salad taco sauce and kits were displayed on consumer Internet site, the company Bob Cole believes that a very dressing. the lit shelves, while the taco cheese is now implementing a new business- important way for traditional grocery Cole says that Kraft’s strategy to was stored in the to-business site to retailers to remain competitive is aid retailers is multi-faceted and mini cooler unit. help retailers with new product introductions. “It’s includes a combination of center Cheesecake mix Kraft Facts: increase center store the lifeblood of our business,” he store marketing, category was on the shelf • 99 percent of North sales. The new adds. “Consumers know they can management and supply chain and cream Americans arc Kraft Foods website find new products at their local assistance. Through the use of cheese in the (www.kraftplus.com) grocery store before they hit the. studies generated from Kraft’s data cooler. • Each day. more than 100 helps retailers easily shelves of warehouse clubs." He collection, the company is able to “W e’re million consumers across obtain displays, points to the 30 new products that offer retailers up-to-date information center store North America enjoy at least racks and shippers. Kraft is introducing this year, as well on consumer behavior. The Kraft focused,” said one Kraft product. Point-of-sale and as new shippers and other Kitchens expertise in developing Cole, meaning • Kraft Foods is the leading module information merchandising vehicles that draw recipe ideas that are relevant and that Kraft marketplace innovator in the along with the Kraft attention to products. meet consumer needs also help to concentrates on food industry, with nearly Plus merchandising “Food choices will always be “move product.” Bringing it all building sales 500 new patents granted solutions that about taste, but our consumer together, Kraft is introducing new volume in the since 1990. appear in Kraft’s research shows that new products concepts that make shopping easier center of the trade advertising are today must meet one of four very for the customer and increase sales store, where also online. diverse consumer needs in order to for the retailer. packaged goods and groceries are Available to customers this summer, succeed,” says Pettie. Kraft’s “Our Meal Solution Center is an traditionally displayed. it helps retailers learn about the latest research shows that Americans are innovative concept which combines To drive center-store movement, tools to help build their business. integrated merchandising and quick Kraft has set up a channel of Coming soon. See Kraft, page 24 22...... AFD Food & Beverage Report. August 2000

these criteria to help families connect Another cinnamon-flavored minerals; Kraft over food." product that Cole believes will • DiGiorno H alf & H alf Rising continued from page 22 Kraft has launched or is launching become a favorite is Post Cinna- Crust Pizza - a rising crust pizza looking for food products that arc an array of new products in 2000 that Cluster Raisin Bran. The newest offering two great toppings side-by- convenient, offer a health/wellness fall into these categories. Bob Cole is addition to the growing branded raisin side; benefit, provide a positive experience particularly excited about three bran category, it extends the Post • Kool-Aid Blast-Offs Soft Drink and are personalized or customized to products geared to breakfast Raisin Bran trademark. “When Mix - two new flavors, Solar individual tastes. consumption: Oscar Mayer shown the concept, nearly 70 percent Strawberry Starfuit and Blue Moon “Today's busy consumers simply Cinnamon Roll Lunchables, Post of consumers indicated they would Berry don't have the time for extensive food Cinna-Cluster Raisin Bran and probably buy Post Cinna-Cluster • Kraft Blue's Clues and Kraft preparation, thus making quick meals Starbucks coffee. Raisin Bran,’’ Cole enthuses. Pokemon Macaroni & Cheese a necessity. And, grab-and-go “Oscar Mayer continues to Other new products for 2000 Dinners - adding sizzle to the Mac & snacking options are equally as innovate within the meal- include: Cheese shapes line are two of the important.” continued Pettic. “Finally, combinations category with • Athenos Travelers - an hottest children’s cartoon characters; consumers are taking health messages Cinnamon Rolls Lunchables for innovative hummus snacking kit. • Kraft Cheez Whiz - the new to heart and searching for foods that breakfast,” says Cole. Four cinnamon • Balance Gold Bar - a triple layer wide mouth jar and ready-to-dip offer an additional nutritional or rolls are paired with do-it-yourself energy bar with chocolate, caramel formula makes it more convenient for functional boost. Kraft is focused on icing and applesauce. “It’s a great go- and nuts that provides 15 grams of dipping and pouring; delivering new products that meet anywhere breakfast." protein and 23 essential vitamins and • Kraft Dips - six varieties of dips with fresh flavor personalities; • Kraft Light Done Right salad dressing - with half the fat and 33 percent fewer calories than regular dressing; • Louis Rich Beef Steak Strips - convenient, fully-cooked beef strips are ready for immediate use for meals NATIONAL in minutes; • Oscar Mayer Lunchables Mega Pack - new larger variety is geared to W l NE kids with growing appetites and active lifestyles; • Philadelphia Snack B ars - cheesecake bars for indulgence on the go; • Post The Wild Thornberrys Crunch Cereal - limited edition cereal brings this popular children's show to the breakfast table; • Stove Top Oven Classics - two new potato varieties expand this Meal-in-a-box line; • Taco Bell Home Originals Pour ‘N Simmer Taco Seasoning - this easy-pour jar of sauce makes seasoning tacos easy; • Taco Bell Home Originals Enchirito Kit - a cross between an enchilada and a burrito, this hot Mexican food sensation can now be Congratulations to all made at home in minutes. • Tang Ready-to-Drink Juice Drinks - extreme, offbeat and very cool refreshment in five, portable AFD Scholarship recipients pouch flavors; • Taste of Life™ Salad Dressings - the first national salad dressing line from. National Wine & Spirits to provide 50 percent of the daily value for vitamin E in every serving; • Tombstone Dipping Ring - ready in 20 minutes, this donut- shaped pizza crust is loaded with pizza fillings and comes with a side of THE ONLY AUTHENTIC LONDON GIN tomato dipping sauce. WILD TURKEY Mark your calendar for these 101 proof, real Kentucky. important AFD events! August 16 -AFD Senior Picnic September 27 & 28 - AFD Beverage Journal Holiday Show “Stocking Stuffers” October 27 JAMESON The Spirit of Ireland AFD’s Toast Michigan: Savor the Flavor of Michigan Wines

24...... AFD Food & Beverage Report. August 2000 Lottery Lowdown Lottery’s “Road to Riches” television game show set to end on September 9

evening drawings will be televised at The “Big Hit” sweepstakes will not August 26, 2000. 7:28 p.m. as they are for the Monday only award 780 qualifying cash prizes I urge you to continue to display through Friday drawings. of $500 each over the six-week your “Big Hit” point-of sale Second-Chance Sweepstakes. period, but will also qualify those 780 promotional items throughout the The Michigan Lottery’s latest second- winners for a final $25,000 grand- course of the sweepstakes. Your help chance sweepstakes offering — the prize drawing! in promoting the Lottery’s second- “Big Hit” — is clearly a big hit with Players enter by sending in two chance sweepstakes offerings makes Lottery players all over Michigan! non-winning Daily 3 or 4 mid-day them the great successes they are! Hundreds of cash prizes have already tickets and two non-winning Daily 3 New Instants. Retailers all over been awarded to winners all across or 4 evening tickets for drawings By Commissioner Don Gilmer the state. conducted between July 17 and For the last ten years, the See Lottery, page 37 Michigan Lottery has given Lottery players the opportunity to win thousands of dollars while appearing on its weekly television game show. That game show has been called several different names over the For security. years, including “Fame & Fortune,' “Megabucks Giveaway,” and most recently. “Road to Riches.” As the popular saying goes, one For fitness. day all good things must come to an end, and that is soon to be the case with the Lottery’s “Road to Riches” television show. The last “Road to For protection. Riches” show will air on Saturday, September 9. 2000. The last “Road to Riches" contestant drawing will be held on August 23, 2000. Players interested in appearing on the show For you. For life. should send their entries in to the Lottery prior to that date. The weekly shows have always stemmed from the Lottery’s instant games. Players entered the drawings For convenience. to become a contestant on the show by sending in three non-winning tickets, one from each of three For options. different instant games. From those entries, six lucky winners were chosen to appear on the show. What was once the most popular For reliability. television show in its time slot has now dropped dramatically in popularity with viewers all across the state. Contestant interest in the show has dropped off significantly as well, causing repeat contestants to become For so many reasons, choose more common. As retailers, I am sure you understand the importance of advertising. The “Road to Riches” Blue Cross show was initially created to help the Blue Shield Lottery advertise the Lottery’s instant games. We have gone from offering Blue Care Network between ten and 20 new instant of Michigan games per year to offering 60 games per year, making the “Road to Riches” show a lot less effective vehicle for instant ticket promotion. For information about Blue Cross coverage available to AFD Because many retailers allow Lottery players to drop off their members, please call Judy Shaba at 1-800-66-66-AFD. "Road to Riches” entries in their stores, please be sure that all entries arrive in Lansing before the final www.bcbsm.com drawing on August 23. Blue Cross Blue Shield of Michigan and Blue Care Network are independent licensees of the Blue Cross and Blue Shield Association Additionally, because of the © 1998 Blue Cross Blue Shield of Michigan show' s cancellation, beginning on September 16, 2000, Saturday AFD Food & Beverage Report, August 2000...... 25 Legislator Profile

Representative Ehardt fills the prescription for good government by Kathy Blake “Professional trust is high for pharmacology for University of State Representative Stephen R. pharmacists,” says Ehardt. Michigan-Flint and pharmacy Ehardt (R-83) is a pharmacist and “Pharmacists are doing more good technology at St. Claire County business owner as well as a politician. today than ever in the health care Community College. In May 1997 He opened his first pharmacy in 1981 arena. They are the most accessible Ehardt was chosen by the American and now he co-owns three drug stores health care professionals," says Pharmaceutical Association for its and one hardware store. He employs Ehardt. single annual Distinguished 44 people and wisely shares His business specializes in patient Achievement Award in Community responsibilities for day-to-day care services and has grown into a Pharmacy Practice. In 1997, he was operations with his partners and successful multi-store group. In elected by his peers as president of the employees. Ehardt works as a 1994, Ehardt’s Pharmacy, Inc. was Michigan Pharmacist Association. pharmacist at one of the stores on a listed on Drug Topics “Outstanding Representative Ehardt graduated daily basis although he spends most Community Pharmacy" honor roll. from Croswell Lexington High School of his time making policy in Lansing. Ehardt has instructed nursing and in 1978 he graduated from Ferris State University with a Pharmacy degree. Ehardt represents the 83rd district which covers all of Sanilac county and the northern half of Lapeer county. He serves on the following House committees: Agriculture and Resource Management, Health Policy. Insurance & Financial Services and he's the vice­ chair o f Veteran’s Affairs. “I went to Lansing with a working knowledge of small business, health care, agriculture and local government and focused on these areas. I feel I need to be an expert on the subject of the committees on which I serve,” explains Ehardt. “I believe in the committee process. It enables us to be good stewards.” As a businessman, Representative Ehardt saw needs in his Thumb area community. His philosophy on government is, “You can either throw up your hands in disgust or roll up you shirt sleeves, get involved and make it better.’ He had the desire to be involved and make sure the community develops in the right direction. He started by becoming a member of the Chamber of Commerce and during the past 17 years, he held the positions of treasurer and president. He was a member and past chairman of the Lexington Planning Commission for four years and 10 years as Lexington Village Trustee. The city, which is located mid- thumb on Michigan’s eastern coast, became a vibrant port. With the current low lake levels, there is legislation to help marina owners receive low-interest loans for dredging. The largest industry in his district is farming with tourism in second place. He says there are Renaissance zones in four communities. “In agricultural zones, there are tax incentives to help bring in processing plants in the vicinity of farms,” says the representative. “This brings more jobs and additional tax base to the area.” Ehardt supports the Thumb Oil Producers Cooperative, a group of oil producers and farmers who are using vegetable oil to make automotive (734) 591-4132 lubricants. Ehardt said that he uses the products in his car. “W e have asked the state to be more involved in using

26...... AFD Food & Beverage Report, August 2000 Rep. Ehardt, said. from page 26 Ehardt lives in Lexington with his It ’s Free! wife and two children. In his spare agriculture-based fuels and time, he enjoys tennis, racquetball, lubricants.” golf and downhill skiing, but his Ask Me How. With 44 employees, Ehardt took an passion is sailing. He also has an interest in workforce development. In airplane pilot license and flies 1996, he was appointed by the regularly. He is active with the Sanilac County Commissioners to the United Methodist Church of Thumb Michigan Works Community Lexington. Advisory Board. This board manages To reach Representative Ehardt, unemployment training and job call (517) 373-0835, email placement, welfare work, and summer [email protected] or write work programs. State Representative, The Honorable He was appointed by Governor Stephen R. Ehardt, P.O. Box 30014, Engler to serve as the house liaison on Lansing, Michigan, 48909-7514. the Michigan Welfare Development Board (MIWORKS). He is chairman of the house MLCC implements subcommittee dealing with watershed management. On this committee, he automated phone line helped revise the drain code which The Michigan Liquor Control had not been updated since 1946. Commission recently launched a After 60 hours in committee, the bill new Automated Product Ordering emerged in a 25-chapter legislation. Information Line and Fax Back “The bill passed the house with a Service (1-800-473-1497), which broad spectrum of support, 103-5,” he allows licensees to access said. automated information 24-hours a On the Insurance and Financial day about products, prices, and Services committee, Ehardt and his Authorized Distribution Agents. peers have been working on the The commission has also begun Call us today to get more information banking code. “We’re trying to keep distributing the MLCC Bulletin via on how this Mini Hot Dog Cart can be in line with federal mandates in an automated electronic yours for free! regard to multi-state bank groups, subscription service for those who without taking away control that the prefer to receive the bulletins by Jim Blain (313) 8 7 3 -8 2 0 0 state should have. We are trying to e-mail rather than the U.S. mail. provide the best working environment possible for the banking industry," he

INC.

Electronic Design, Imaging & Printing

17630 East Ten Mile Road • Eastpointe, Michigan 40021 Phone (610) 777-6823 • Fax (810) 777-1434 Visit our Website: http://www.nuad.com E-mail: [email protected]

• Full Service Printing • Full Service Design Team Insert Advertising a Specialty State-of-the-Art Electronic System World-Class Printing at a Down-To-Earth Price!

AFD Food & Beverage Report. August 2000...... 27 Meet the AFD Scholars The Associated Food Dealers of Michigan, in support of higher education, is proud to award these 32 students with AFD Scholarships. They were presented with their scholarships at the AFD Annual Scholarship Golf Outing on July 20.

Kenya M. Alexander Braden M. Boji Clifton Clarke III Andrea C. Forton Submitted by NAACP Submitted by Submitted by NAACP Submitted by Frito-Lay Sponsor: Verizon Wireless Orchard Market Place Sponsor: Alex Bell Sponsor: Frito-Lay Kenya is anending Wayne State Sponsor: Memorial Scholarship Andrea will be a freshman at the University School of Medicine in Detroit. Quality Inventory Specialists Clifton is attending Wayne State University of Pennsylvania in Philadel­ Her focus is pediatric care. She is a WSU Braden will be a freshman attending University in Detroit majoring in business phia. She plans to major in biology and Emerging Scholar and a National Honor Kettering University in Flint, majoring in information systems. He was president of English. Andrea graduated from Lahser Society member. Kenya has volunteered engineering. He graduated 12th in his WSU’s Chapter of the NAACP, has served High School in Bloomfield Hills where for numerous community services and class with honors from Brother Rice on the Board of Governor’s student she was a National Merit Finalist and projects including the Salvation Army High School in Bloomfield Hills and committee and is vice-president of the editor of the literary magazine. She also Lighthouse soup kitchen. Go Into The had received an academic letter as well Association of Black Business Students. received the Gold Writing Award from Streets and Rouge River Rescue. She as a varsity letter for basketball. He He received the David Adamany Scholastic Art and Writing Alliance for participated in the Opportunities in received a Michigan Merit Scholarship Scholarship. Young Writers and a science departmen­ Research (N1MH-COR) fellowship and a Lawrence Technological Univer­ tal award. In addition to her other program. Kenya graduated from sity Academic Scholarship. activities, she is employed with Paine Renaissance High School in Detroit. Webber.

Marcy K. Dix Submitted by Daniel D. Bennett Tiombe Z. Briggs Hilltop Shopping Center Roland D. Gardner Submitted by Frankenmuth IGA Submitted by Jays Foods, LLC Sponsor: Anheuser-Busch Submitted by The North Pole Sponsor: CROSSMARK Sponsor: Detroit Edison Marcy will be a freshman at Michigan Sponsor: National Wine & Spirits Food Trade Tiombe is a sophomore at Florida State University in East Lansing. She Roland will be a sophomore at the Daniel is a sophomore attending the Agricultural and Mechanical University plans to major in history. She graduated University of Michigan, Ann Arbor this University of Michigan in Flint majoring in Tallahassee, Florida. She is majoring from Newaygo High School in Newaygo, fall. His major study is mathematics/ in chemistry. Daniel received the in criminal justice. Tiombe graduated Michigan. Marcy was a national merit business. Roland graduated from University of Michigan Chancellor’s from Cass Technical High School in finalist and National Honor Society presi­ Plainwell High School in Plainwell Scholarship award and the William J. Detroit where she was a member of the dent. She participated in the Newaygo where he was a DAR recipient, on the Branstrom award. He graduated from National Honor Society. She played on County Youth Initiative, Girl Scouts and honor roll for four years and received an Birch Run High School in Birch Run. He the high school softball team. Tiombe is Band. Marcy received English awards and academic letter. He was a National was a National Merit Semi-finalist and a involved in various activities and was Quiz Bowl captain. Honor Society member and played foot­ member of the National Honor Society. responsibilities with her church. ball and basketball. He received the U.S. Students Math competition award.

Reta Elias Dru N. Bernthal Ryan R. Bronz Submitted by Submitted by Bernthal Packing Submitted by Nash-Finch/ Chaldean Federation of America Tara N. George Sponsor: AAA Michigan Super Food Services Sponsor: Associated Food Submitted by Dru will be attending Michigan State Sponsor: Philip Morris U.S.A. Dealers of Michigan Melody Farms Dairy University in East Lansing this fall as a Ryan is a senior at the University of Reta will attend University of Detroit Sponsor: Melody Farms Dairy sophomore, majoring in horticulture. She California in Berkley where he is Mercy as a freshman. She graduated from Tara will attend the University of is a member of the MSU Horticulture majoring in chemical engineering/ Southfield Lathrup High School in Lathrup Michigan in Ann Arbor as a sophomore Club, the Honors College Service Corps material science engineering. He Village. She was on the honor roll all majoring in graphic design. She and Bailey Scholars program. She graduated valedictorian from Heritage through high school. She was president of graduated Magna Cum Laude from graduated from Frankenmuth High High School in Saginaw. Ryan was on the Chaldean club and co-editor for the Mercy High School in Farmington Hills. School, in Frankenmuth. She was the the honor roll all four years of high yearbook. She is an active member of the Tara was a National Honor Society student council secretary, a member of school, was a quiz team member, and National Honor Society, the Senior board member, a French honor society the National Honor Society and Students played tennis. He now fences, tutors and Scholars Plus. member, a competitive scholar, and a Against Drunk Driving. She received the high school chemistry and is a member member of the human relations council. National Merit Science Award and was of Delta Tau Delta fraternity. She also received the President’s the captain of the varsity soccer team Educational award. where she received All-State Honorable Mention. 28...... AFD Food & Beverage Report, August 2000 Michigan. He will be a freshman majoring member of the National Honor Society in Secondary Education/Math. Nathan and secretary of the Rotary Club. graduated from Bad Axe High School in Bad Axe. He received the Senior of the Year award and numerous academic honors in French, Pre-Calculus, Algebra II, geometry, and forensics. He was on the Quiz Bowl, the Youth Advisory Committee and he participated in drama.

Dawn M. Hechinger Jennifer Seba Submitted by Riverside Market Submitted by Chaldean Federation of Sponsor: Miller Brewing Company America Dawn will be a freshman at Eastern Sponsor: Associated Food Michigan University in Ypsilanti Chan G. Park Dealers of Michigan majoring in journalism. She graduated Submitte by Lakeside Party Store Jennifer will be a freshman attend­ from Clio High School in Clio where she Sponsor: American Bottling/7-Up ing Oakland University. She graduated was a member of the National Honor Detroit from Sterling Heights High School in Society and she received the Michigan Chan will be a freshman attending Sterling Heights. Jennifer was on the Merit award. Priscilla A. Moseley-Atchoo University of Rochester in Rochester, student council, the Junior Senate, the Submitted by McK’s Wine Shop New York. He is majoring in computer French club, the American club, the Sponsor: science/computer engineering. Chan marketing club and the Michigan Math Central Distributors of Beer graduated from Pioneer High School in League. She played volleyball and Priscilla is majoring in engineering Ann Arbor where he was an honor student soccer and was in the National Honor at the University of Michigan in Ann and student council representative. He Society her senior year. She received Arbor. She is a member of the ski club was a member of the Key Club, Science achievement awards in accounting, and is working on an undergraduate Olympiad and layout editor of the school algebra and chemistry. She also received research program. She graduated from newspaper. Chan received a Michigan an Excellence in Scholastics award. Marian High School in Bloomfield Hills. Merit Award and the National Merit There she was the president of the ­ Scholarship Letter of Recommendation. tional Honor Society, all school board He is involved with his church youth Erika M. KJemm vice president, and a member of the group. Submitted by Northside Market Inc. Spanish Honor Society. Priscilla also Sponsor: Brown Forman Beverages participated in Students Against Drunk Erika will attend Illinois Institute of Driving. Technology in Chicago. She will be a freshman majoring in architecture. Erika graduated from Ludington High School in Ludington. She was named the 1999- Katharine E. Sophiea 2000 Outstanding Visual Artist and was Submitted by Rumors an Alpha graduate. Erika was a member Sponsor: Seagram Americas of the varsity girls swim team and the Katharine will attend Michigan Slate National Honor Society. University in Lansing as a sophomore Dianna R. Reed majoring in social relations and English. Submitted by Kroger She was on the Dean’s list her freshman Serene T. Najor Sponsor: Kowalski Companies year. Katharine is a member of the Submitted by Mini Super Market Dianna plans to attend the University National Society of Collegiate Scholars Sponsor: Arbor Mist/Canadaigua of Missouri in Columbia, Missouri. She and received a Scholar Athlete 4.0 Club Wine Co. will be a freshman majoring in civil Award. She graduated valedictorian of Serene will be a freshman at Wayne engineering. Dianna graduated from Femdale High School in Ferndale, where State University in Detroit majoring in Southfield Lathrup High School in she was accepted in the National Honor psychology. She graduated from Marian Lathrup Village. She was student Society for three years. She was High School. Serene was the recipient of congress president her senior year. She treasurer of her class in 9th grade and for Sonia L. Lousia the Cum Laude Award for Latin. She was a mentor for Leonard Elementary her next three years, she was the Submitted by Round Haus was involved in Students Against Drunk School. Dianna was American Red Cross president. Katharine was in the Party & Pizza Driving and volunteers at Prince of Peace Volunteer of the Year and Zelda Northeastern Suburban Swim League and Sponsor: General Wine & Liquor Co. church during their bible camp. Robinson Volunteer of the Year. She is a varsity track and field all through high Sonia will be a freshman at Wayne Discover Card Silver State Scholar and a' school. State University in Detroit studying to M.E.A.P. scholar. become a pharmacist. She graduated valedictorian from St. Agatha High School in Redford. She was student council secretary. National Honor Society secretary/ treasurer and yearbook editor. Sonia played varsity basketball and volleyball and received the Scholar Athlete Award from the Detroit Free Press. She received the ment of excellence award from the Society of Women Engineers for science and math. Stephanie M. Sulaka TifTany L. Newton Submitted by Nikhlas Distributors Submitted by Bryan M. Reid Sponsor: Peoples State Bank Coca-Cola Bottling Co. Submitted by Drakes Marketplace Stephanie will be a freshman at Sponsor: Coca-Cola Bottling Co. Sponsor: Kar Nut Products Central Michigan University in Mt. Tiffany plans to attend Michigan Company Pleasant, majoring in business. She State University in East Lansing. She is a Bryan is a sophomore attending the graduated from Shrine High School in freshman majoring in human biology/pre- University of Michigan in Ann Arbor He Royal Oak. Stephanie was secretary for med. Tiffany graduated from Creston is majoring in mechanical engineering her high school's student government and High School in Grand Rapids where she and was on the Dean's list during his National Honor Society. She was captain was a President’s Education Awards of the basketball and track team and Nathan J. Mausolf freshman year Bryan is doing Scholar, a National Achievement Scholar played volleyball as well. She is a Submitted by McDonald's Food & undergraduate research at the college. He and a National Science Merit Scholar. volunteer for Focus Hope, St. Mary's Family Center graduated from Lincoln High School in She was a cheerleader all through high Nursing Home and charitable fund­ Sponsor: Faygo Beverages Inc. Ypsilanti where he was on the basketball school and did volunteer work with her raisers. She is an assistant basketball Nathan plans to attend Saginaw Valley and wrestling teams. church youth group. Tiffany was a coach for 7th grade girls. Stale University in University Center. AFD Food & Beverage Report. August 2000...... 29 K. Yankee Bridgette H. Thom Daniel L. Westerhof Larry J. Wilson, Jr. Submitted by Tom Davis Submitted and Sponsored by Interstate Submitted by Spartan Stores Submitted by Savon Foods & Sons Dairy Brands Corp.-Wonder Bread/ Sponsor: Northpointe Insurance Co. Sponsor: Pepsi-Cola (Detroit) Sponsor: Tom Davis & Sons Dairy Hostess Cake Daniel will be a freshman at Albion Larry plans to attend Oral Leanne is a freshman attending Grace A sophomore at New York College majoring in biology. He graduated Roberts University in Tulsa, College in Winona Lake, Indiana. Her University in New York City, she will from Grandville High School and was class Oklahoma. As a freshman, he will be college major is youth ministry. She major in American Studies-Pre Law. She treasurer and played leading roles in school majoring in drama. Larry graduated graduated from Trenton High School in worked on the NYU newspaper and was theater productions. In Science Olympiad, from Cass Technical High School in accepted into the New York University Trenton where she received academic he received first place in Practical Data Detroit. He received the Detroit honors. She was on the varsity swim team, Dean’s Honor Society. She graduated Gathering. He was involved in community Public Schools’ Senior Award of Ex­ valedictorian from Shrine High School in a member of Students Against Drunk theater, church choir. Business Profession­ cellence and was listed in Who’s Who Drivers and a National Honor Society Royal Oak. She received the National als of America and volunteered with Timo­ Among American High School Merit Commended Student and the Radio member. She is very involved with her thy Team, at Grace Youth Camp. Students. Shack Tandy Scholar awards. church and does volunteer work for Gleaners, the Good News Gang and has traveled on mission trips to Mexico, West Virginia and Chicago.

Way to go, Paul A. Submitted by Pelzers Scholars! Sponsor: Eastown Distributors Paul plans to attend Oakland Comm nity College in Royal Oak. He will be a freshman majoring in electrical Best wishes engineering. He graduated from Royal for continued Oak Shrine High School in Royal Oak. success to all o f AFD’s Keep up Scholarship the good recipients. Bryan H. Zair work! Submitted by Valley Farm Market Sponsor: Petitpren, Inc. Bryan is a senior at Wayne State University in Detroit, majoring in From your corporate finance/pre-law. He was vice- president of the WSU Business School Student Senate and a member of Beta friends at Gamma Sigma fraternity. Bryan graduate from Southfield Lathrup High School in Lathrup Village where he was in the National Honor Society and a member of the Gold Key Society.

Submitted by Western Michigan University Food Marketing Program Sponsor: Associated Food Dealers Kelly is a junior in the Food Market­ ing program at Western Michigan University in Kalamazoo. She is a member o f Sigma Phi Omega and works at the Parkview D&W in Kalamazoo. She has also worked at Busch’s Market Place as an intern, and was awarded the Mary Macey Scholarship from the Women Grocers of America. 30...... AFD Food & Beverage Report, August 2000 quarter of 2000. The combined Internet trade, HomeGrocer.com company is expected to have Continued from page 6 proceeding with operations in 13 metropolitan areas common standards for the underlying by year-end. technologies whenever possible. The Block. “It will enable us to deliver at two associations intend to coordinate HomeGrocer.com, based in proposed webvan Internet speed the B2B e-commerce, Kirkland, Wash., integrates its their efforts with the Uniform Code education and communications group merger Internet web site, Council (UCC) to adopt any services that our members need.” On June 25, HomeGrocer.com and www.homegrocer.com, with its applicable standards developed by FMI’s President and CEO, Tim Webvan Group, Inc. signed a customer fulfillment centers and fleet UCC. Hammonds, added: “We believe this definitive merger agreement under of tri-temperature trucks to deliver FDI and FMI are establishing a set of technology partners will enable which Webvan will acquire products directly to consumers’ joint association working group of us to deliver state-of-the-art Internet HomeGrocer.com in a stock-for-stock homes or offices. HomeGrocer.com their retail, wholesale and foodservice buying fully integrated with logistics transaction. Upon closing, offers groceries and household members to steer this effort. FMI and services, coordinated backhaul, and HomeGrocer shareholders will goods, produce, meats, seafood and FDI also said they are inviting other cooperative planning, forecasting, and associations that are developing receive 1.07605 shares of Webvan dairy products, fresh flowers, health replenishment.” common stock for each share of and beauty aids, and top-selling network services for their members to Both FDI and FMI believe that all HomeGrocer.com common stock. The books, videos and movies. explore a coordinated trading those who are developing Internet transaction is subject to customary HomeGrocer.com’s shares are quoted exchange. services for the grocery industry regulatory and shareholder approvals, on the Nasdaq under the symbol should make every attempt to develop and is expected to close late in the “HOMG.” third quarter or early in the fourth

D&W makes ONLY LICENSED MICHIGAN COMPANY top-level personnel changes Rumors of D&W Food Centers Inc. sale were put to rest last month Consistently Voted #1 for Customer after the company announced that it was “looking at new strategies— Service in the Industry! instead of new partners— to hold its niche as a home-grown, independent grocer.” Company officials point out that recent attempts to sell never materialized because they could not Leading Edge reach an agreement with anyone that would be best for D&W management, Technology, S e c u r i t y employees and customers. Changes in the executive team is Experience the Grand Rapids-based company’s EXPRESS newest strategy. Doug Blease has & Service! been named as President and Chief Operating Officer. Rob Woodrick remains D&W ’s chairman while Jeff Gietzen becomes the company’s CEO and vice-chairman. Also joining the executive team is Wayne Boatwright, MONEY ORDERS who is the company’s new senior vice president of operations and human resources. Jerry Matthews will 1-248-304-1900 continue in his role as company senior vice president and chief Building Quality in a Crowing M arket financial officer. Discover Security Express Money Orders Starbucks chairman is • Utility Executive of the Year Payments SECURITY EXPRESS OFFERS YOU: For having pursued his goal of • Profits from Increased Store Traffic elevating coffee from a commodity to •Pre-Paid a specialty product while providing a • Low Cost culture where employees are Phone Cards recognized and respected as the • Money Orders In Seconds company’s most valuable asset, •Check Cashing/ Howard Schultz, chairman and chief • Speed Reporting and No Bookkeeping global strategist of Seattle-based Advances Starbucks Coffee Company • Expert Sales Consultation (Nasdaq:SBUX), has been named Executive of the Year in the July 1, 2000, issue of Restaurants and Institutions (http://www.rimag.com) magazine. Security Express Money Orders Starbucks was one of the first U.S. companies to offer employee- ownership to full and part-time employees through annual stock 1 1 - 2 4 8 - 3 0 4 - 1 9 0 0 options. The company also offers comprehensive health-care benefits to *11 employees.______AFD Food & Beverage Report, August 2000...... 3 1 Member Profile

Two Jackson retailers give ‘thumbs up’ to EBT roll out

by Ginny Bennett too. Kuhl has heard the It has now been two months since card referred to as “the EBT system the roll out of the Electronic Benefits bridge card,” EBT, Transfer (EBT) System in Jackson Quest card and the problems addressed County. This program allows public food stamp card. One by NGA and FMI assistance customers to use a plastic name for the card Although our sampling in Jackson card, which is similar in appearance might help it be less County found retailers pleased with to a credit card, instead of food stamp confusing. “Whenever the Electronic Benefits Transfer coupons. The state chose Jackson there is a problem,” says Kuhl, “we just (EBT) overall, NGA and FMI both County as the first Michigan location have addressed problems with the say, ‘it isn’t your fault to implement the system. system. and it isn’t our fault.’ By the end of 2001, the Family In the first of seven USDA W e act as a cushion Independence Agency (FIA) plans to conversations on the food stamp (I to r) Arthur (John), Brad, Jason, Jordan, John between the program extend the program statewide. “EBT program held nationwide, NGA has succeeded at cutting costs and and Justin Kuhl in Kuhl ’s Meat Market. and the client and try to Senior Vice President and General modernizing services in 30 states,” help out.” Counsel Tom Wenning met with says Stephanie Comai, director of e- the changeover, although minor Through the Michigan Bridge representatives from the USDA Michigan, the state agency glitches happened in the first days Card, retailers are allowed to give calling on them to act on responsible for organizing all online when some customers tried to use the eligible customers cash with the card, impediments that need to be state services. card without activating it. as if it was a debit card. Given the addressed in the EBT system. For example, when the system is down, Governor John Engler announced Others who are unfamiliar with a choice, Kuhl said he didn’t want to retailers have experienced inability to the EBT system when it went online personal identification number (PIN) become a “bank.” He puts a $20 limit contact service providers to authorize in Jackson County on June 1. have needed the most help. The on the amount of cash he will hand manual vouchers and food stamp Through EBT, customers access cash major problem is forgetting the over. John Park of Lakeside Party recipients have been unable to and food benefits using a debit card number. Now Kuhl recommends that Store, decided he was happy to give out cash, as much as requested, up to purchase food. Also, some retailers called the Michigan Bridge Card. after two tries, if the customer hasn’t are denied reimbursement for the card’s limit. He thinks it is a way Cash benefits can be obtained from succeeded in using the number, they purchases if manual vouchers aren’t of competing with other stores that set enrolled retailers and automated teller contact their caseworker. Initially the authorized. their limit. Says Park, “I am like a problem was that the USDA was also asked to review card wasn’t activated bank anyway, selling Western Union, food stamp authorization procedures and then customers etc.” Always competing with the for retailers. Wenning asked USDA forgot their number “big” stores, Park looks for ways to to give consideration to an expedited and after three tries make it convenient for his customers. approval procedure for retailers who they were shut out of Just 15 years ago, Park came to have a positive record of participating the system for the America from Seoul, Korea. He lives in the food stamp program and are day. in Ann Arbor with his wife and two purchasing stores that have Kuhl says he tries children. In Korea, Park was a previously been in existence. Tim Hammonds, president and to remind his clients degreed architect/engineer o f six CEO of the Food Marketing Institute to save their receipt years. He has owned Lakeside Party (FMI), in a letter to members, John Park says the EBT roll out is going well in which includes the Store for 11 years. His wife was a his Lakeside Party Store biologist in Korea and is now a vice reported a series of recurring remaining balance. problems plaguing the EBT system president of the family business and Without remembering their available causing outages, duplicate charges, takes responsibility for the machines, and food benefits can be balance, customers have tried to loss of float, rejected recipients, bookkeeping. His son Chan works in redeemed at federally authorized food purchase more than they have left in uncollectable adjustments and stamp retailers. credit. the store and is a recipient of a 2000/ reduced confidence in the system. On I visited two AFD-member stores, Some cards have a cash 2001 AFD Scholarship. He will attend June 12-13, the system was Lakeside Party Store and Kuhl’s Meat component. Not only is the card used the University of Rochester to study inoperable for 12 hours. As a result, Market that are enrolled in the for food but also may be used to computer science/engineering. numerous customers were turned program to see how the system works. receive cash. Park knows many of his customers away and prevented from purchasing AFD member John Park of Privacy is also an issue. Kuhl and they know him. He offers free food. Lakeside Party Store, 5509 Ann instructs customers to keep their PIN candy to their children and free The problems are compounded by Arbor Road in Jackson, says the card private. The FIA doesn’t allow them lighters to buyers of cigarette cartons. the fact that retailers have not been allowed to use emergency vouchers speeds up the line for both cashier and to choose their own number since He sings to them on their birthdays. customer. Kuhl’s Meat Market owner they may pick a number that is too They are generous to him, too, and when the EBT system is inoperable. and AFD member John Kuhl says, obvious. Some mistakes customers bring him all sorts of interesting gifts “We are both learning—retailer and have made include writing their PIN including venison meat, vegetables See EBT problems, page 37 customer.” The market is one number on their card. Others say the from their gardens concession in the Bell Tower Mall numbers out loud as they punch the and invitations to which is the family’s business at 117 buttons. One customer with arthritic fish frys. They have W. Louis Glick Highway. fingers wanted an employee to push made him feel In this downtown Jackson location, the buttons for him but Kuhl says he welcome in the Kuhl initially was hesitant to has asked the man to bring a family community. He has a implement the new procedure. He had member so an employee will never half hour drive each heard rumors about the card that have know the man’s PIN. day since the family since been proven false. Card holders are not required to relocated to Ann Downtown Jackson has a high rate provide I. D. Kuhl reports few Arbor but John Park of card users. Kuhl says his problems. Extensive training took doesn't mind. He sings experience has been very positive, place during the roll out and a toll- and prays as he goes although he is not as technologically free computerized help line is down the road. savvy as his teenage sons who work available to customers and retailers. A dedicated______in the store. He hasn’t had too much He is happy with the program and Thumbs Up to Mary Kuhl and daughters Susie and Katie at Mary s D*R difficulty with the technical aspects of thinks 75 percent of the users are. EBT, Page 36 in the Bell Tower Mall. 32...... AFD Food & Beverage Report, August 2000 Congratulations to all of AFD’s Year 2000 Scholarship Winners from ACOSTA SALES/ GOODMARK FOODS, INC (248) 865-1062 2000 Golf Outing Sponsor OODMARK FOODS, INC.® G t

ANDY CAPP’S SNACKS

o

AFD Food & Beverage Report, August 2000...... 33 Check Seminar Attending: Name______Ann Arbor - 9/25 Seminars offered on new Name______Washtenaw Comm. College Name______Cadillac - 9/18 Best Western Bill Oliver’s food law Company______Flint - 9/20 procedures utilized by health Address______Ramada Inn, Pierson Rd. The Michigan Food Law of 2000 — Gaylord 9/19 departments and the will go into effect on November 8th. City______State_ Otsego Club Department of Agriculture. This is a "Unicode' affecting all food __Grand Rapids - 9/13 These seminars are Zip______Phone ( )_ and food service establishments, Dominican Center designed to assure that key including restaurants, grocery and Total Enclosed: $______Kalam azoo - 9/12 personnel of all food and convenience stores, institutional food for_____people at $49 per person Fetzer Center, WMU food service establishments service operations and caterers. __Lansing - 9/26 are fully aware of the The new code contains many Make check payable to Food Service Best Western Midway requirements of the new code significant changes in rules and Associates. Send payment to Food __Livonia - 9/27 and 9/28 and that all food operations Seminar, 18470 West 10 Mile Rd. Burton Manor regulations for the operation of all will be in compliance; when Southfield, MI 48075 __W arren - 9/11 food establishments and food service the new standards go into Van Dyke Park Hotel operations. In addition, there will be For larger group registrations or to register for effect. major changes in the inspection multiple locations, please photocopy this form or attach a separate sheet

The new code and inspection procedures are based on the Food & Drug A dm inistration's model food code and the Hazard Analysis Critical Control Point (HACCP) food safety system. In this seminar, you will learn how to identify critical control points (CCPs) in your own operation, the new code requirements for each CCP, and how to conduct HACCP self-inspections (like the actual inspections that will be conducted by Congratulations your own local health department for the Michigan Department of Agriculture). and Best Wishes All owners, managers, supervisors and other key employees of all food and food service establishments will benefit from this seminar. They will to all of the learn the new requirements for receiving, storing, refrigerating, preparing, handling, cooking, "Class o f 2000" cooling, displaying, reheating and serving food; the new standards for health and hygiene of personnel; and AFD Scholarship the new rules for cleaning and sanitizing equipment. Under the new code, a “person in charge” must be present at all times Winners when the establishment is open and/ or working with food. “Persons in charge” must demonstrate knowledge of food safety, HACCP and the requirements of the food code. Taking the free, optional, end-of- course exam and earning this special from certificate is an excellent way to demonstrate that you have this knowledge. Seminars begin at 9:00 a.m. and NORQUICK end at 4:00p.m. Lunch is on your own and not included in the fee. Please mark the date on your calendar; you will not receive a DISTRIBUTING confirmation of your registration. For Questions or if registering less than a week in advance, call 800- 442-2277 before sending the COMPANY registration. To take the optional test, you must bring a government issued photo ID card. This is a test to demonstrate person-in-charge knowledge; it is not the Manager Certification Program. Certified Managers should also consider attending this seminar to learn about the new food code standards.

34.. ..AFD Food & Beverage Report. August 2000 CROSSMARK FOOD TRADE Help WIN the fight against Muscular Dystrophyl Please join CROSSMARK for our 11th annual "Aisles Of Smiles" promotion

Each participating manufacturer will contribute to the Muscular Dystrophy Association a “CENTS PER CASE” amount on total shipments, for Michigan & the Toledo, Ohio marketing area, during the program: July 31, 2000 through September 8, 2000 Please support Muscular Dystrophy & “Jerry’s Kids” by participating with ads & displays and identifying the following promoted products with “Aisles of Smiles” point-of-sale materials.

PLEASE FEATURE & DISPLAY THESE PRODUCTS ...... HELP JERRY’S KIDS

Bush's Baked Beans - 28 oz. S Dole Pineapple 20 oz. Mandarin Oranges 11 oz. Fruit Bowls 4 pk./4 oz. Florida's Natural Refrigerated Premium Juices 64 oz. & 96 oz. Gerber Graduates Baby Food Full Line Carpet Fresh No Vacuum Carpet Refresher (Foam) 10.5 oz. 2000 Flushes Clear Cup 15.4 oz. Blue & Clear Tablet 3.5 oz. Plus Bleach 3.5 oz. Ice Mountain Spring Water 8 pk/8 oz. Turkey Store Deli Meats Premium Seasoned Oven Roasted Smoked Cured Turkey Store Meats Turkey Breast Items

Contact your CROSSMARK sales representative for program details & appropriate point-of-sale materials. CROSSMARK FOOD TRADE Your Full Service Broker Michigan Division

AFD Food & Beverage Report, August 2000...... 35 Thumbs up to EBT doesn't have to stamp any coupon or and nephews help out in various ways ass Continued from page 32 wait as customers tear them out of a in the family businesses. CRESCENT MARKET FOR SALE-Grocery, coupon book. John’s father Arthur (John) Kuhl produce, specialty foods, salad bar and juice bar. churchgoer, John is a deacon, sings in John Kuhl sees the savings, too. He was the first owner of Kuhl’s Meat 1150 sq. ft. west side Ann Arbor campus location. the choir, leads the youth group and is says he likes to see his tax dollars Market. John bought it from his Dad Close to Michigan Stadium. Ample parking. (734) director of the Sunday school. At the coming into the store as customers use three years ago. The building was 668-2935; ask for Lutfi. beginning of the new millennium, John the card to buy their meat. "My tax formerly a bus garage, that had sat FOR SALE—Ray’s Food Center Full line of started closing his store on Sundays to dollars are coming back to me.” empty for two or three years. Besides Groceries and frozen foods. Beer, Wine, lotto, check honor a day of rest, as his religion John's three children work in the the family business, there is also a cashing, money orders and fax. Lottery sales average $12,000 weekly. Located between U. of D. and teaches. He wishes he could do more in mall. Son’s Jason and Jorden work in Secretary of State office, a jeweler and his church to show appreciation for his Marygrove College campuses. Building and the meat market and the youngest, a hairdresser inside the mall. business for sale. Building 10,000 sq. ft., business good life. Korey, works in his grandmother AFD members Park and Kuhl both 5,000 sq. ft. + basement. For more information call John Park is very positive about the Mary’s deli. Mary Kuhl’s Deli is a great have given their stamp of approval to Ray at (313) 861-0262. EBT roll out because it allows luncheon spot which attracts a big the new “Michigan Bridge Card” and PARTY STORE FOR SALE—Great income. Good customers to quickly make their cross-section of downtown workers predict the rollout will proceed neighborhood. Border of Detroit and Dearborn. Del, purchase with a card that is similar to a who come in for homemade soups, throughout other counties with the same pizza, beer and wine. Fredd or Joe (313) 849-5440. Call now! credit card, and be on their way without sandwiches, salads and daily specials. ease encountered in Jackson County. SAGINAW HIGH VOLUME PARTY STORE FOR embarrassment. He feels that it will John’s sister, Katie helps run the deli In this case something new has save labor for the state and he already SALE—Saginaw Twp. location on heavily traveled and his sister, Susie runs a yogurt, proven to be better than expected for road. SDD, SDM & Lottery. Sales volume 1.4 million. sees it saving time in his store. Now he coffee and donut shop. Other nieces store owners and customers alike. Also available, several high volume restaurants in the Saginaw/Bay City market area. For more information call Brian Saha, Trombley Real Estate & Leasing Co., (800) 678-1962 or (517) 895-2700. www.lottery-watchdog—take control of your instant lottery sales. EQUIPMENT FOR SALE—Popcorn machine, hot dog steamer, Bunn coffee maker with 3 warmers. $650 takes all! Call Patrick at (810) 725-2076. PARTY STORE FOR SALE—NEW BALTIMORE— Four blocks from Lake St. Clair. Beer, wine, Lotto, check cashing, money orders and fax. Business averages $11,000/week, Lottery averages $4,000V week. For more information call Patrick at (248) 396-0714. FOR LEASE—33,000 sq. ft. supermarket. Currently operating as a Kroger store. Turn key operation. Located in strip mall on SMART bus route. Call John Miram for details at (810) 978-0191 or (810) 523- 4908. FOR SALE—Supermarket, SDD. SDM, lottery, safe area in Detroit. Contact Eddie at (313) 925-0511. SDD/SDM LIQUOR LICENSES NOW AVAILABLE—One in City of Livonia, One in City of Rrverview. Must Sell! Call (248) 548-2900, x3033 MEAT & DEU BUSINESS IN SANDUSKY, MI- Well established business opportunity includes equipment, inventory and real estate. Cute, 2- bedroom home w/ full basement adjacent to business. $129,000 for business and $188,000 for business & house. Call Shirley, (810) 387-2502, Associated Food Dealers Century 21 First Choice. PARTY STORE FOR SALE—Beer, wine, Lottery deli and grocery. Located on Dequindre Road in of Michigan Warren. Call Sam at (810) 756-4010. SPECIALTY FOOD AND MEAT MKT.-2 blocks from Great Lakes Marina in popular Northern Michigan community including real estate, business/ and their equipment/smokehouse, detached storage building, apartment and parking lot. Beer & Wine. Call Peg Hatch, Century 21, Lakeside, 888-264-5611 for information package 5-107. Scholarship Fund FOR SALE—Party Store in Warren. Excellent location! Good business with GREAT income. Cal Sam or Mike at (810) 751-6440. FOR SALE—Four-door reach-in cooler, compressor, 1-year old—$1,000. Gas countertop Pizza Oven—$1,000. Two-deck Blodgett gas pizza oven—$2,200. Copy machine—$400. Call Sam at (248) 288-4774. FOR SALE—Liquor, deli, pizza. Brighton area. High volume comer! Business & property available Contact George at (313) 460-9194. ESTABLISHED NEWER PARTY STORE-Port Huron, Ml. 6,000 plus sq. ft. liquor, beer, wine. La#* Lotto sales. First class—6 year old equipment and building. Excellent location and clientele. Contact Bob Greene, II, Moak Real Estate, Inc. (810) 985- 9515 for more info. FLINT—Grocery/Meat store. $800,000+ in yearly sales. All licenses. Rent—$2,500/month. Building available. Great opportunity for owner.operator . Cal (800) 787-3928. MONROE—Small supermarket. SDD/SDM, high volume lottery sales. Area icon, 50 years same owner! Ready to retire and ready to sell. and real estate available. Call Bill Michaud a Prudential Michaud Realtors, (734) 242-4700. SUPPLIERS: Looking for ways to increase your market visibility? Let the AFD show you how Promotional opportunities through limitless. Call Dan Reeves at (248) 557-9600.

36...... AFD Food & Beverage Report, August 2000 The Associated Food Dealers of Michigan welcomes these new Retail Members who have joined in April through June, 2000

7 Star Party Shop Comer Produce Lakeport Market Pic Pac Market Universal Party Shoppe A& A II Dallas Super Market Larson’s Foods Prime Time Meats Village Market Adair Market Dominick Deli Pizza & Liquor Little Sack Grocery Quality Choice Foods W ater’s Beverage Agemy & Sons Market Family Unit Market Livonia Beer & Wine Shoppe Ranglers Grocery Webers Meat market Amira’s Beer & Wine Fast Stop Party Shop M & K Food Red Wagon Shoppe of Rochester West Side Grocery Beck’s Farm Market Fedek Enterprises, Inc. M ario’s Party Store Scotia Stop Wide A Wake Market II Besons Party Store Frank’s Quick Stop Mathew’s Liquor Shoppe Shorga Imported Foods Better Health Foods Get & Go Mel’s Food & Beverage Simon & Leeman Produce Market Brighton Supermarket Hall Street Party Store Mike’s All World Market Sullivan’s M irror Lake Market Brothers Pizza Hell Country Store & Spirits Morenci Super Valu Super Star Liquor Caravan Food Center Jacks Fruit Market Nixon Grocery Team One Food Stores City Market Kim’s Convenience Store Northland Party Shoppe The Store EBT Problems C-Mart Inc. LaFrontera Mexican Products Park Lane Cork & Bottle Todds Snack Pack Continued from page 32

One major retailer reports that on an average day, 14 percent of their EBT transactions are being declined during these outages. FMI is pressing hard for a 77 % of traceable foodborne resolution to these issues. Hammonds outlined the problems in a letter to illnesses are the result of Citicorp Services, Inc. A formal grievance has been filed with the improper food handling! National Automated Clearinghouse Association’s EBT Council citing violations of the Quest Operating P ath w ay Rules that FMI believes have resulted in customer overcharges and delayed settlements for merchants. Introducing A F D s NEW and INNOVATIVE approach to food safety training. FMI is working with the USDA to resolve current issues, prevent future Major benefits include: This program will: problems, reinstate customer accounts •While in training your employees •Train hourly employees on the basic and reimburse retailers. FMI says to never leave the store steps to food safety expect updates on this issue. If •All training is conducted in 6 blocks ’ Introduce your managers to the retailers have questions they can call FMI at (202)452-8444. of 15 minutes each seven HACCP principles Written comments can also be sent to: The National FSP Conversation The kit includes: 2000, Food and Nutrition Service, 7 Video Presentations • Management Training Manual FSP, 3101 Park Center Drive, Room Handouts and Quizzes • Program Certificates 808, Alexandria, VA 22301. Consumer Handouts • Store Posters Food Safety Materials Lottery Continued from page 25 Implement a full food safety program with complete training materials for only the state continue to enjoy the 7- percent sales commission they are receiving on the sale of $2 instant $249 plus tax, shipping and handling tickets. The month of August will provide retailers with even more opportunities to collect those higher I agree to pay $249.00 (or each kit • sales commissions, as we will debut plus tax. shipping and handling. Send me___ employee three new $2 instant tickets this yes training program kits Payment is as follows: month. The first of the new $2 tickets is an old player favorite — “Wild Bill me Enclosed Time” — that will be back at ticket Pathway counters on August 7 offering a top Charge to my credit card prize of $30,000. Players can win double the prizes with “Doubling Red 7’s” — another $2 ticket that will be Bankcard Number hitting stores on August 14, with a top prize of $27,000. The last new $2 M C v is a instant ticket to debut in August will Exp. Date appeal to Lottery players who enjoy playing a hand of poker now and then. “King Kash,” hits ticket counters on Authorized Signature August 28 and offers a $25,000 top prize. In addition to the three $2 games, a new $1 game called “Loot Associated Food Doalora of Michigan Complete and detach this 18470 w Ten Mile Rd . Southfield Ml 48075 Pursuit,” debuting on August 21, will order form and return it to: Phone 248 557-9600 Fax 248 557-9810 keep players pockets full of cold, hard cash with a top prize of $5,000.

AFD Food & Beverage Report, August 2000...... 37 SUPPORT THESE AFD SUPPLIER MEMBERS Telecheck Michigan, Inc...... (248) 354-5000 AUTHORIZED LIQUOR AGENTS: Brown & Williamson Tobacco (248) 350-3391 WDIV-TV4 ...... (313) 222-0643 Travelers ExpressMoney Gram (248) 584-0644 General Wine & Liquor...... (248) 852-3918 Philip Moms USA ...... (313) 591-5500 W W W W -AM /FM ...... (313) 259-4323 Western Union Financial Serivces (248) 888-7423 National Wine & S pirits...... (888) 697-6424 R.J. Reynolds...... (248) 475-5600 NON-FOOD DISTRIBUTORS: ...... (888) 642-4697 Whitey's C oncessions...... (313) 278-5207 Toffler Marketing...... (810) 263-9110 Encore Group/ Trans-Con, Co. (888) 440-0200 CATERING/HALLS: STORE SUPPUES/EQUIPMENT: Emerald Food S ervice...... (248) 546-2700 POTATO CHIPS/NUTS/SNACKS: Belmont Paper & Bag Supply . (313) 491-6550 BAKERIES: Farmington Hills M anor...... (248) 888-8000 Ackroyd's Scotch Bakery Better Made Potato Chips...... (313) 925-4774 Brehm Broaster Sales...... (517) 427-5858 Karen's Kafe at North Valley .. (248) 855-8777 & Sausage...... (313) 532-1181 Detroit Popcorn Company...... 1-800-642-2676 Cost Savings & Reduction Nutrition Services...... (517) 782-7244 Archway C ookies...... (616) 962-6205 Frito-Lay, Inc...... 1-800-24FRITO Specialists...... (561) 398-9396 Penna's of Sterling...... (810) 978-3880 Awrey Bakeries, Inc...... (313) 522-1100 Germack Pistachio Co...... (313) 393-2000 Culinary Products...... (517) 754-2457 Southfield Manor...... (248) 352-9020 Dolly Madison Bakery ...... (517) 796-0843 Grandma Shearer’s Potato Chips... (313) 522-3580 DCI Food Equipment...... (313 ) 369-1666 St. Mary's Cultural Center...... (313) 421-9220 Interstate Brands Corp...... (313) 591-4132 Jay's Foods...... (800) 752-5309 Tina's C atering...... (810) 949-2280 Envipco...... (248) 471-4770 Koepplinger Bakeries, Inc...... (248) 967-2020 Kar Nut Products Company .... (248) 541-7870 Hobart Corporation...... (734 ) 697-3070 Metz/Taystee Oven Fresh Bakery (734) 946-4865 DAIRY PRODUCTS: Nikhlas Distributors (Cabana). (313) 571-2447 Kansm acker...... (517) 374-8807 S & M Biscuit Dist. (Stella DOro) (810) 757-4457 Golden Valley D airy ...... (248) 399-3120 Pioneer S n ack s...... (248) 862-1990 Martin Snyder Product S ales... (313 ) 272-4900 Taystee Bakeries...... (248) 476-0201 Melody Farms Dairy Company (313) 525-4000 Rocky Peanut...... (313) 871 -5100 MSI/BOCAR Store Fixtures ... (248) 399-2050 Variety Foods, Inc...... (810) 268-4900 BANKS: Pointe Dairy Services, Inc...... (248) 589-7700 National Food Equipment Stroh's Ice C ream ...... (313) 568-5106 Vitner S nacks...... (810) 365-5555 & Supplies...... (248) 960-7292 KPN Technologies (ATM s).... (800) 513-4581 Superior Dairy Inc...... (248) 656-1523 North American Interstate...... (248 ) 543-1666 Michigan National B a n k ...... 1-800-225-5662 PROMOTION/ADVERTISING: Tom Davis & Sons Dairy...... (248) 399-6300 Oreck Floor Care Centers...... (810) 415-5600 North American Interstate...... (248) 543-1666 Huron Web Offset Printing.....(519) 845-3961 Sarkozi-Hollymatic Equipment (313) 381-5773 Peoples State B an k ...... (248) 548-2900 EGGS & POULTRY: J.R. Marketing & Promotions.. (810) 296-2246 Serv-Tech Cash Registers...... (800) 866-3368 Linwood Egg Company...... (248) 524-9550 JDA, Inc...... (313)393-7835 BEVERAGES: Market A dvantage...... (248) 351-4296 Taylor F reezer...... (313) 525-2535 Montgomery Egg ...... (517) 296-4411 Absopure Water Co...... 1-800-334-1064 PJM G raphics...... (313) 535-6400 TOMRA Michigan...... 1-800-610-4866 Ak' W ater...... (248) 627-3747 FISH & SEAFOOD: Promotions Unlimited 2000 .... (248) 557-4713 Wadie Makhay Allied Domecq Spirits USA .... (248) 948-8913 Seafood International/ Stanley's Advertising & D ist... (313) 961-7177 Produce Specialist...... (248) 706-9572 American Beverage Marketers (913) 451-8311 Salasnek, Inc...... (313) 368-2500 Stephen’s Nu-Ad, Inc...... (810) 777-6823 WHOLESALERS/FOOD DISTRIBUTORS: American Bottling...... (313) 937-3500 FRESH PRODUCE: RESTAURANTS: AK’WA Water Co...... (248) 627-4737 Anheuser-Busch C o...... (800) 414-2283 Capital D istributors...... (313) 369-2137 Aunt Mid Produce Co...... (313) 843-0840 Copper Canyon Brewery...... (248) 223-1700 Arcadia Brewing Co...... (616) 963-9520 Central Foods...... (313) 933-2600 Sunnysidc Produce...... (313) 259-8947 The Golden M ushroom ...... (248) 559-4230 Bacardi Imports, Inc...... (248) 476-6400 Consumer Egg Packing Co.....(313) 871-5095 Palace G ardens...... (810) 743-6420 Bellino Quality Beverages, Inc. (734)947-0920 ICE PRODUCTS: EBY-Brown, Co...... 1-800-532-9276 Brown-Forman Beverage C o... (734) 433-9989 Midwest Ice Co...... (313) 868-8800 SERVICES: Family Packing Distributors.... (248) 644-5353 Central Distributors...... (313) 946-6250 Party Time Ice Co...... (800) 327-2920 AAA Michigan...... (313) 336-0536 Fleming Company...... (330) 879-5681 Coca-Cola Bottlers of MI Abbott, Nicholson, Quilter, Food Services Resources...... (248) 738-6759 ...... Auburn Hills (248) 373-2653 INSECT CONTROL Esshaki & Youngblood ...... (313) 566-2500 Garden Foods...... (313) 584-2800 ...... Detroit (313) 825-2700 Tri-County Pest Control...... (810) 296-7590 Action Inventory Services...... (810) 573-2550 Global Interactive Technology (517) 681 -2729 ...... Madison Heights (248) 585-1248 INSURANCE: AirPage Prepay & Talk Cellular... (248) 547-7777 Gourmet International, Inc...... 1-800-875-5557 ...... Van Buren (734) 397-2700 Blue Cross/Blue Shield ...... 1-800-486-2365 AirTouch Cellular...... (313) 590-1200 Hamilton Quality Foods...... (313) 728-1900 ...... Port Huron (810) 982-8501 Capital Insurance Group...... (248) 354-6110 American Mailers...... (313) 842-4000 Hammeft Music, Inc...... (248) 594-1414 Coffee Express...... (734) 459-4900 Gadaleto, Ramsby & Assoc.....(517) 351-4900 Ameritech Pay Phone Services 1 -800-809-0878 Hav-A-Bar...... :...... (810) 2344155 Coors Brewing Co...... (513) 412-5318 IBF Insurance Group, Inc...... (810) 774-5300 AMT Telecom G roup...... (248) 862-2000 I & K Distributing...... (734) 513-8282 E & J Gallo W inery...... (248) 647-0010 Frank McBride Jr., Inc...... (810) 445-2300 Ann Klempner Red Carpet Keim.. (734) 741-1262 Jerusalem Foods...... (313) 538-1511 Eastown Distributors...... (313) 867-6900 Meadowbrook Insurance...... (248) 358-1100 Automated Collection Systems (248) 354-5012 Kaps Wholesale Foods ...... (313) 567-6710 Faygo Beverages, Inc...... (313) 925-1600 North Pointe Insurance...... (248) 358-1171 Bellanca, Beattie, DeLisle...... (313) 882-1100 Kay Distributing...... (616) 527-0120 General Wine & Liquor Corp.. (313) 867-0521 Rocky Husaynu & Associates. (248) 988-8888 Cellular One— Traverse C ity... (231) 922-9400 Kramer Food Co...... (248) 851-9045 Great Lakes Beverage...... (313) 865-3900 Central Alarm Signal...... (313) 864-8900 L&L Jiroch/J.F. Walker...... (517) 787-9880 Hubert Distributors, Inc...... (248) 858-2340 MANUFACTURERS: Check Alert...... (231)775-3473 Lipari Foods...... 1-(810) 447-3500 Intrastate Distributing...... (313) 892-3000 Anthony's Pizza...... (810) 731-7541 Checkcare Systems...... (313) 263-3556 Mr. Dee's Gourmet F o o d s...... (734) 747-8475 J. Lewis Cooper Co...... (313) 278-5400 Bosco's Pizza Co...... (248) 616-3450 Credit Card C enter...... (248) 476-2221 National Bulk Foods...... (313) 292-1550 Jim Beam Brands...... (248) 471-2280 Eden Foods...... (517) 456-7424 Dean Nadeem Ankouny, JD Norquick Distributing Co...... (734) 254-1000 Josulete Wines, Inc...... (313) 538-5609 Home Style Foods, Inc...... (313) 874-3250 Attorney At L aw ...... (810) 296-3967 Robert D. Arnold & Assoc...... (810) 635-8411 L & L Wine W orld...... (248) 588-9200 Jaeggi Hillsdale Country Cheese... (517) 368-5990 Detroit Edison Company...... (313) 237-9225 S. Abraham & Sons...... (248) 353-9044 Michigan Grape & Wine Kraft General F o o d s...... (248) 488-2979 Eskye.Com, Inc...... (317) 632-3870 Sherwood Foods Distributors.. (313) 366-3100 Industry Council...... (517) 373-1104 Monitor (Big Chief) Sugar...... (517) 686-0161 Follmer, Rudzewicz & Co., CPA. (248) 355-1040 Spartan Stores, Inc...... (313) 455-1400 Miller Brewing Com pany...... (414) 259-9444 Nabisco, Inc...... (248) 478-1350 Frank Smith Re/Max in the Hills .... (248) 646- State Fair Wholesale, Inc...... (248) 542-3535 NAY A, U S A ...... (248) 788-3253 Old Orchard Brands...... (616) 887-1745 5000 Suburban News: Warren...... (810) 7564000 O.J. Distributing, Inc...... (313) 533-9991 Pack'Em Enterprises...... (313) 931-7000 Garmo & Co., C P A ...... (248) 737-9933 F lin t...... (810) 785-4200 Oak Distributing Company.....(248) 674-3171 Philip Morris U ...... (616) 554-0220 Goh's Inventory Service...... (248) 353-5033 Super Food Services...... (517) 777-1891 Pabst Brewing Co...... 1-800-935-6533 Red Pelican Food Products...... (313) 921-2500 Great Lakes News...... (313) 359-1001 SuperValu Central Region...... (937) 374-7874 Pepsi-Cola Bottling Group Singer Extract Laboratory ...... (313) 345-5880 Guardian Alarm ...... (248) 423-1000 T.I. Spices, Inc...... (810) 790-7100 -D e tro it...... 1-800-368-9945 Strauss Brothers Co...... (313) 832-1600 J & B Financial Products LLC (734) 420-5077 Tiseo’s Frozen Pizza Dough .... (810) 566-5710 - H ow ell...... 1-800-878-8239 Jerome Urcheck, CPA ... (248) 357-2400, x257 Value Wholesale...... (248) 967-2900 - Pontiac...... (248) 334-3512 MEAT PRODUCERS/PACKERS: Karoub Associates...... (517) 482-5000 Weeks Food Corp...... (810) 727-3535 Petitpren, Inc...... (810) 468-1402 Alexander & H om ung...... (313) 921-8036 Law Offices-Garmo & Garmo. (248) 552-0500 Ypsilanti Food C o-op ...... (313) 483-1520 Seagram Americas...... (248) 553-9933 Bar S F o o d s...... (248)414-3857 Market P ro s...... (248) 349-6438 Seven-Up of D etroit...... (313) 937-3500 Burdick Packing Co...... (616) 962-5111 ASSOCIATES: Meter M ate...... (800) 843-6283 South Beach Beverage Co...... (234) 223-9451 Gainor's Meat Packing...... (517) 269-8161 American Synergistics...... (313) 427-4444 Metro Media Associates...... (248) 625-0700 Southcorp Wines North America .. (248) 795-8938 Hartig M eals...... (313) 832-2080 Canadian Consulate G eneral. . . (313) 567-2208 Nationwide Communications.. (248) 208-3200 Tri-County Beverage...... (248) 584-7100 Hygrade Food Products...... (248) 355-1100 Livemois-Davison Florist...... (248) 352-0081 North American Interstate...... (248) 543-1666 UDV-North Am erica...... 1 -800-462-6504 Kowalski Sausage Company ... (313) 873-8200 Minnich's Boats & M otors...... (810) 748-3400 Paul Meyer Real E state...... (248) 398-7285 Vineyards Fine W ines...... (734) 284-5800 Metro P acking...... (313) 894-4369 Wileden & Assoc...... (248) 588-2358 Payment Authority, The ...... (248) 879-2222 Viviano Wine Importers, Inc... (313) 883-1600 Nagel Meat Processing Co...... (517) 568-5035 Wolverine Golf Club. Inc...... (810) 781-5544 Pack "Em Enterprises...... (313) 931-7000 Prudential Securities. Inc...... (248) 932-4480 BROKERS/REPRESENTATIVES: Pelkie Meat Processing...... (906) 353-7479 Quality Inventory Services...... (810) 771-9526 Acosta-PMl ...... (248) 737-7100 Potok Packing Co...... (313) 893-4228 Retail Accounting Service...... (313) 368-8235 Bob Arnold & Associates...... (248) 646-0578 Strauss Brothers Co...... (313) 832-1600 REA M arketing...... (517) 386-9666 C rossM ark...... (734) 207-7900 Wolverine Packing Company.. (313) 568-1900 Safe & Secure The Greeson Company...... (248) 305-6100 Investigations, Inc...... (248) 425-4775 Hanson & Associates, Inc...... (248) 354-5339 MEDIA: Sal S. Shimoun, C P A ...... (248) 593-5100 International Sales Group, Inc. (810) 754-5662 The Beverage Journal...... 1-800-292-2896 Security Express...... (248) 304-1900 J.B. Novak & Associates...... (810) 752-6453 Booth Newspapers...... (734) 994-6983 Smokeless Tobacco James K. Tamakian Company . (248) 424-8500 Detroit Free P ress...... (313) 222-6400 Council. Inc...... (202) 452-1252 Marketing Specialist. Inc...... (248) 626-8300 Detroit News...... (313) 222-2000 Southfield Funeral Home...... (248) 569-8080 S & D M arketing ...... (248) 661-8109 Detroit Newspaper Agency....(313) 222-2325 Slaver & Souve, P C ...... (734) 374-1900 Michigan Front Page...... (313) 870-1940 CANDY & TOBACCO: Harold T. Stulberg, R.E., Broker Michigan Chronicle...... (313) 963-5522 24 H ours...... (248) 351-4368 American Vending Sales...... (248) 541-5090 38....AFD Food & Beverage Report, August 2000

Could you strengthen your success with over 2,000 years of retail experience?

At Spartan Stores, Inc., we help our customers succeed. We provide expertise and services which accelerate retail growth, productivity and profitability. Spartan associates are experts in many fields and possess over 2,000 years of combined experience in retail operations. This expertise allows us to offer nearly 150 services ranging from purchasing land to designing and printing promotional materials. These services extend far beyond the supply and delivery of product and into every aspect of a grocer’s operation. Give us the opportunity to share our experience and enhance your retail success.

Take Advantage of Our Strengths.

Visit our w eb site at www.spartanstores.com