BE PROUD of YOUR INDUSTRY KY) Introduced Legislation, S
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Our Chairman Reflects on the Year.......................... ............... • 3 Small Market Does Big Wine Sales........................................ 4 Meet Senator Virgil Sm ith................................................................................ 6 An official publication of the Associated Food Dealers of Michigan Cadillac Coffee in the Driver's Seat..........................................................10 VOL 3, NO 12 and its affiliate. Package Liquor Dealers Association DECEMBER 1992 Handling Shoplifters................................... 18 Food Stamp Fraud Bill Likely To Be Reintroduced Next Year Senator Mitch McConnell (R- BE PROUD OF YOUR INDUSTRY KY) introduced legislation, S. 3314, on Saturday, October 3, to identify and curtail fraud in the Food Stamp Program. According As 1992 comes to a close, we home, down from 9.1 percent in expenses. (Operating expenses to Senator McConnell, “For every ask you to reflect on your indus 1980. The extremely competitive are the costs of running the 1% of Food Stamp Program try and the impact it has on our nature of the industry is reflected businesses — everything but funds that are lost to fraud, there economy and the livelihood of all in its after-tax profits, which product cost.) could be $200 million to give as Americans. Because we all have frequently fall below a penny on benefits to the food stamp to eat, no other industry effects a dollar. For the fiscal year 1992 Food Price Increases recipients...More than 25 million U.S. citizens as much as the food ending March 1992, after-tax are Predicted to be the Americans are enrolled in this industry. profit for the industry was only Smallest in 25 Years. program, which hands out over 0.77 percent, well below a penny Based on the first 10 months of $20 billion in benefits a year.’’ The Supermarket Industry on the dollar. the year, U.S. Department of The 1990 Farm Bill required the is One of the Most Agriculture economists believe submission of identification competitive and Efficient Food Marketing is One of food prices will increase only numbers by retailers and beefed in the World. the Largest Employers in about one percent this year, the up the penalties to assist USDA Food retailers and wholesalers the Nation. smallest increase since 1967. in targeting and punishing the serve as the purchasing agents for Food retailers and wholesalers This is the second year in a row violators. His bill, the “Food our nation’s consumers and the employ more than three million of very modest food price in Stamp Anti-Fraud Act of 1992,” distribution agents for farmers skilled workers in grocery stores creases. The 1991 rise was the will increase penalties to retailers and grocery suppliers. Intense and warehouses, supermarket lowest in six years. In compari and recipients and expand the competition has led to innovative company offices and wholesale son, the overall Consumer Price use of the application information distribution techniques and food company facilities. From Index (CPI) for all consumer and identification numbers increased efficiencies that benefit 1981 to 1991, the number of products and services rose 4.2 provided by retailers to the Food, consumers. Today, Americans employees in grocery retailing percent in 1991. and Nutrition Service. spend a smaller amount of their increased by 33 percent, and the disposable income on food than industry may add an estimated AFD Supported Annual Meeting Notice do consumers in any other major 600,000 more jobs by the next Congressmen Win economy in the world. In 1991, century. Labor is the largest All AFD members are The AFD supported 40 candi consumers spent only 7.2 percent expense for supermarket compa invited to attend our dates for seats in the House of of disposable income on food-at- nies, about half of total operating annual meeting. A review Representatives in the November of the year will be 3rd general elections. Of these, presented, along with our 35 won their seats, which trans direction for the future. lates to an 88 percent success The meeting will be held rate. at the AFD offices on Monday, December 21, at Get Ready For Tobacco 6:30 p.m. Dinner will be Floor Stocks Tax served and we ask you to Many of the nation's retailers call in advance so we can and wholesalers must pay a one reserve a seat for you. time federal floor stocks tax on The AFD is located at cigarettes held for sale on January 18470 West 10 Mile Road, 1.1993. The Bureau of Alcohol. just west of Southfield Road in Southfield. Call Tobacco and Firearms (ATF) is (313) 557-9600. We hope the agency responsible for col to see you there. lecting the Federal tobacco taxes. See Tobacco Tax, Page 8 FOOD & BEVERAGF REPORT, DECEMBER 1992.....1 Frank Arcori Chairman Vegas Food Centers Amir Al-Naimi Year Review - A Time to Reflect Immediate Past Chairman Metro Grocery, Inc. By Frank Arcori, AFD Chairman associations, but for its value to encumbered with strangling tax N abby Y ono As we come to the close of First Vice Chairman the retailers they represent. Like levies or restrictive regulations XTRA Foods another year, it the family doctor and the cop on that mean the difference between Thomas Welch is a good time the beat, we look to our trade livelihood and bankruptcy. Vice Chairman to reflect on Hollywood Super Markets associations in times of emer As individuals, we are a voice M ark K arm o what has been gency. But all too often, we in the wilderness. Organized, we Vice Chairman accomplished ignore them and the day-to-day take on strength that grows in Royal Food Center and then look Richard George leadership they give to protect direct proportion to the numbers Secretary forward to our and further the interests of their our association represents. Wine Barrel plans for the Bill Viviano membership. The AFD has helped us Treasurer future. Every kind of business is through some tough legislation Marks Sales & Marketing We have stronger for the trade associations and has spoken well on our faced many problems over the that hold it together and fight for behalf. But when I look back on years, and battles are constantly Raad A yar its common aims. In every the year and all that has been Harvest Foods waged to further strengthen the industry they are important. In accomplished, I also see prob Sam Dallo retailer’s position. the retail food industry, the trade lems that have surfaced and In 'N‘ Out Foods Look at the legislatures and Fred Dally association is a necessity. future perils that we face. Medicine Chest the agencies that regulate the Almost alone in American Especially during difficult Terry Farida retail food and alcohol beverage Value Center Market business, we in the retail food economic times, the temptation is Jamal Garmo industries. Study our relations industry are constantly subject to there to make a little money Galaxy Foods with local governments and our Raad Kathawa public approval. Laws and “under the table.” Before you Ryan's Food inter-trade relationships. In so regulations define, limit and give in to the urge, stop and think Tony Munaco many ways, trade associations, about the damage you could be Mack-Bewick Super Market pleading the cause of their Thomas Simaan Every kind of doing to your business, your Lafayette Towers Supermarket membership, have contributed family and the food industry. J e rry Yono towards the establishment of a business is stronger D & L Market for the trade You have worked hard and you Sam Yono better industry, business and have a great deal to lose. Don’t Palace Plaza regulatory environment for their associations that hold IRECTORS SUPPLIER MEMBERS take chances. Make it a New membership. it together and fight Year’s resolution to review all Jerry Inman It seems to me that this power for its common aims. your store policies to be sure you Paul Inman & Associates ful story of achievement ought to Mel Larsen are complying with all of our Club Cars, Inc be told and retold, not nearly so restrict every phase of our opera laws and regulations. If you have Ron Paradoski much for the credit it earns the tion. We are at the mercy of Coca-Cola Bottlers of Michigan. Inc questions, call the AFD. Reme- Alan Stotsky legislative bodies. We are made ber, your association is here to Concord Drugs scapegoats for “evils” that are Barbara Weiss-Street help. The Paddington Corporation neither our responsibility nor our Chris Zebari Statement of Ownership doing. Overnight, we can be Pepsi Cola Company The Food & Beverage Report (USPS 082-970; ISSN 0894-3567) is Josep h D. Sarafa published monthly by the Associated Executive Director & Publisher Food Dealers at 18470 W 10 Mile, Judy Mansur Southfield, Ml 48075. Subscription Services pnee for one year is $3 for members. Sue Knapp $6 for non-members Material con Office Administration tained within The Food & Beverage Jim Larges Report may not be reproduced without Office Manager wntten permission from the AFD Mona Youhana Second Class postage paid at South- Receptionist field, Michigan V icky O ple Special Events POSTMASTER: Send address Phil Haddock changes to Food & Beverage Report. Sabah Brikho 18470W 10 Mile. Southfield. Ml 48075. Glenn Christian Membership ADVERTISERS: For information on If we can help you. please call the staff advertising rates and data, call AFD, members at (313) 557-9600 Ray Amyot. 18470 W 10 Mile. South- or 1-800-66-66-AFD.__________ field. Ml 48075. (313) 557-9600 or (517) 386-9666 AFD works closely with the following Harley Davis associations Coupons Karoub and Associates Legislative Consultant G adaleto & Ram sby Health Care James Bellanca. Jr. Betianca Beattie & Del isle Legal Counsel Jerry Urcheck CPA Ray A m yot Advertising Michele MacWllliams Metro Media Associates Inc Pubac Rotations AFD Food & Beverage Report Edit or FOOD & BEVERAGE REPORT, DECEMBER 1992.....3 Big Business in Wine Helps Small Market Grow Tony ’s legacy to his family is a entering the market.