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Food & Beverage Associated Food Dealers P R S R T STD 18470 W. 10 Mile Rd. U.S. Postage Southfield, Ml 48075 PAID FOOD & BEVERAGE DETROIT,Ml Change Service Requested PERMIT#36 The official publication of the Associated Food Dealers of Michigan VOL. 13, NO. 12 December 2002 Working hard for our members. AFD supports health insurance market reform • See page 3 Meet Deputy Chief H o lid a y s Ronald Haddad H a p p y • See page 6 Bellanca family continues American dream AFD PAC Dinner brings • See page 8 Talking Turkey SDD licensees closer to Baker Boys make dough in T raverse C ity See page 14 discount increase On November 12, AFD hosted a special Political Action Fresh French bread Committee fundraising dinner that was designed to raise made easy by Cuisine de money for AFD’s PAC and also increase awareness for our France latest political efforts -an increase in the liquor discount. • See page 19 Since there hasn't been an increase in 22 years, AFD believes that Michigan SDD licensees are due to receive one. 7up turns things upside This initiative is something that AFD is taking on single- Each year AFD and its members raise money to provide turkeys down handedly and will require considerable assistance from our to needy families across Metro Detroit. Thanks to our hard- • See page 26 members. Our goal is to increase the discount from 17 percent working Charitable Activities Committee, we were able to provide to 20 percent. turkeys to 1700 needy families! Volunteers paused for a quick AFD President Mike Sarafa believes that increasing the photo. (I to r): AFD's Dan Reeves, Charlie McCallum of Spartan, Legislative Update liquor discount for SDD licensees is an issue that we can win, Clifton Manus from DTE Energy, Phyllis DeSmet from Spartan, but not without the support of a healthy PAC fund. Wendy Acho o f Standard Federal Bank, DTE Energy volunteers At the dinner, Sarafa outlined how a store with yearly liquor Dina Chapman and Pamula Woodside, Value Center Market's GOP Wins to Lee Solyman, Tom Sokol and Iqbal Singh of DTE and Jim Garmo See PAC Dinner, page 4 of Shopper’s Valley Market. Refocus Congress? Pepsi to modify Energy bill, ethanol, economic stimulus package strategy likely to get new looks With the Republicans in 2003 keeping control of the House Pepsi Bottling Group had informed the Associated Food and gaining a majority in the Dealers of Michigan (AFD) that due to the change in consumer Senate, Congress is expected dynamics, Pepsi will be introducing a new package strategy to take a different look at starting in 2003. According to Pepsi, over the last 10 years the some key issues, says the Mike Sarafa, Mel Larsen, Joe Palamara, Jim Curran, Kim Rhead 12oz can packages have doubled in market share and now Associated Press, including and Joe Sarafa at the Nov. 12 PAC Dinner. represent 55% of the CSD category. Additionally, Pepsi has several that directly or been very successful in their introduction of the 24oz. 6-Pack indirectly impact the plastic bottles, to which they believe the consumer has petroleum/c-store industry. responded very well. The combined benefits of the 12oz. cans One issue is energy. I t will be a ball! and a 6-Pack 24oz. they believe will be the best selection to the Although the House and It’s time to think ahead to consumer going into 2003. Senate have passed separate Valentine’s Day. Mark your As a result, Pepsi will be eliminating the 20oz. 8-Pack from energy bills, an attempt to calendar now for the AFD their product portfolio, and 24oz. 6-Pack will be the primary work out a compromise Annual Trade Dinner and plastic multi-pack package in Supermarkets, Mass version had been on life Ball. For next year, it falls Merchandisers and Warehouse Clubs. The 20oz. loose or support even before the on February 14, single serve cases will remain available to all Retailers. The election. Now Democrats and 2003...Valentine’s Day! AFD will be analyzing the impact of this change and will have Republicans say Congress is full coverage in the January edition of our Food & Beverage Please see page 13 for details. almost certain to start over Report. next year. Visit our Web site at: www.afdom.org The First Rule of Business: Give the customer what they want We've got all the brands and flavors people crave. That's why we’re the preferred beverage company in Michigan. Improve your business. Call today for product information and sales opportunities. Coldwater 517-179-8436 Lachine 989 379 3264 Petoskey 231 347-6663 Detroit 313 832 0910 Lansing: 517 321-0231 St. Joseph 616 927 6904 Flint 810 237-7100 Milan 734-439-2451 Port Huron 810-987-2181 Kalamazoo 616 381 0950 Mt Pleasant 989 772-3158 Traverse City: 231 946 0452 Grand Rapids 616-285 8200 Pontiac: 248 334-3512 West Branch 989 345 2595 Howell 517-545-2600 Saginaw 989 755 1020 PEPSI _______________ EXECUTIVE COMMITTEE Chairman's Message Terry Farida, Chairman Value Center Markets Ronnie Jamil, Vice Chair Membership Mug & Jug Liquor Stores Fred Dally, Vice Chair Community Relations AFD supports principles of small group Medicine Chest Gary Davis, Vice Chair Legislation Tom Davis & Sons Dairy Co. Thomas Welch, Vice Chair Future Planning market reform for Michigan’s health Hollywood Super Markets Chris Zebari, Treasurer New Hudson Food Market insurance industry Al Chittaro, Secretary Faygo Beverages, Inc. Market Reform was created to characteristics may be used for EM ERITUS D IREC TO RS provide guidelines for market reform. determining the rate within the band Sam Dallo In ‘N’Out Foods AFD sits on the executive committee for a specific group. Bill Vlviano of this coalition and subscribes to its • Upon renewal, a small business House of Prime principals. We believe: can receive no more than a 15% Mark Karmo Golden Valley Food Center All carriers (BCBSM, HMOs, adjustment within the band for Nabby Yono commercial insurers) operating in the changes in case characteristics. Orchard Food Center small group market should be treated Therefore, the maximum increase any Frank Arcori V.O.S. Buying Group the same with regard to allowable group could experience is the annual RETAIL DIRECTORS rating practices, rate filing, and rate adjustment in the index rate plus 15%, Phyllis DeSmet approval. Rating practices and • Each carrier may establish no Spartan Stores, Inc. Region 3 methodologies must be applied more than 10 geographic areas for the Jim Garmo consistently for all Michigan small purpose of setting rate bands. No Shopper's Valley Market, Region 2 James Hooks group business. geographic area may be smaller than Metro Foodland • For groups of one, a carrier may the smallest Michigan County. Raad Kathawa apply an open enrollment period (for • Carriers may impose participation Ryan's Foods, Region 1 Nick Kizy example, the month of the date of rules of no more than 75% required Warrendale Food Center birth) or a six-month pre-existing participation for groups of six or more Alaa Naimi By Terry Farida, AFD Chairman condition clause. The Insurance eligible employees and carriers might Thrifty Scot Supermarket Vic Ventimiglia, Jr. As we all know, health insurance Commissioner should define a also require higher participation for Vic's World Class Market costs have recently skyrocketed. “Basic” or minimum plan that must groups smaller than six eligible Brian Yaldoo These increases are across the board, be offered to groups of one by all employees. Carriers may enforce Woodward Long Lake Shell Jerry Yono and affect companies of all sizes. carriers. them at the carrier’s discretion. Imperial Sunoco However, the small group market - • Every carrier operating in the • A premium penalty of up to 50% SUPPLIER DIRECTORS the companies that employ from 1 to small group market in Michigan shall may be applied for two rating years to Brian Belobradic 99 people, have been hit the hardest. establish rate bands (a fixed range employers that are entering the small Anheuser-Busch, Inc. If changes aren’t made, we may find from minimum allowable to group insured market from a self- Frank Bodi Pernod Ricard USA that health insurance will become maximum allowable rate for each insured arrangement. Earl Ishbia unaffordable. product offering in a geographic • All carriers in the small group Sherwood Food Distributors The Coalition for Health Insurance area). Only allowable case market must bill small businesses Mike Rosch using a “composite” rate. A premium General Wine & Liquor Co. Clark Walker bill may not apply case characteristics Coca-Cola, Region 6 at the individual level resulting in Tom Waller The Grocery Zone higher premiums for some employees CROSSMARK Sales Agency, Region 5 By David Coverly ADVISORS than for others. Plan options, family Amir Al-Naimi composition, and Medicare eligibility Joy-Thrifty Scot is the only factors that can result in Tom Simaan premium differentials on the Lafayette Park Market Sam Yono employer’s premium bill. Ramada Southfield © • The Insurance Commissioner will AFD STAFFS, CONSULTANTS prepare a “State of the Small Group Michael G. Sarafa Health Insurance Market” report President and Publisher periodically to provide policy makers Daniel Reeves FOOD YOU KNOW Vice President with information about affordability Cheryl Twigg and availability of coverage in the Office Manager you shouldn't Joseph D. Sarafa small group market as well as the Special Projects Buy, but market share of commercial carriers, Melissa Varney Executive Assistant HMOs, BCBSM, and any carriers that Sheila Reeves have entered or left the market. Services Manager Harley Davis These principles should serve as Coupons the foundation upon which legislation Danielle MacDonald Special Events should be based to fix the broken Ginny Bennett small group market.
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