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.

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______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. It is imperative Special Events Manager Ray Amyot that the focus remain on the small Advertising group market and that other James V. Bellanca Jr. Bellanca, Beattie & DeLisle extraneous issues such as the Legal Counsel proposed internal changes to Blue Michele MacWilliams Cross Blue Shield of Michigan, not Metro Media Associates, Inc. Public Relations. Special Events, become a hindrance to finding a AFD Food & Beverage Report Editor plausible solution. These principles Karoub Associates Legislative Consultant represent a fair and reasonable Gadaleto & Ramsby Health Care approach that would help stabilize the Pat Gregory small group market in Michigan. Follmer, Rudrewicz & Co. P.C. Certified Public Accountant

AFD Food & Beverage Report, December, 2002...... 3 Legislative Updates Calendar January 19 - 20, 2003 AFD PAC dinner International Fancy Food & Confection Show Continued from front page San Fransisco, CA sales of $500,000 would receive an additional $15,000 annually. Stores with (212) 482-6440 sales of $800,000 would see an additional $24,000. He added that the value of the liquor license would also increase, as well as profit on existing inventory. February 2-5, 2003 In addition to Sarafa's speech, Brandon George, co-owner of Red Wagon in N a tional G rocers A ssociation Rochester Hills, gave a very poignant speech about the liquor discount. He Annual Convention & Expo asked all SDD retailers to rally behind AFD. support the Political Action Las Vegas, NV Committee and when it is time, make the necessary calls to help pass legislation (703) 516-0700 to increase the discount. February 14, 2003 AFD Annual Trade Dinner Penna’s of Sterling Brandon George Contact: Michele MacWilliams (248) 557-9600

February 24-27 NACS Leadership Assembly Ritz Carlton, Naples, FL www.nacsonline.com

April 9 - 10, 2003 19th Annual AFD Trade Show Burton Manor, Livonia Contact: Ginny Bennett (248) 557-9600

July 16, 2003 AFD Scholarship Golf Outing Some o f the SDD licensees that attended the AFD PAC dinner. Brian Yaldoo and Jake Mio Wolverine Golf Course Macomb Township The new legislative lineup (248) 557-9600 The following lists newly elected leadership in both chambers for the 92nd Statement of Ownership Legislature, which convenes in January 2003. We will keep you apprised as Want to be things develop in Lansing. The AFD Food & Beverage Report (USPS 082-970; ISSN 0894-3567) is in the published monthly by the Associated Senate Republican Leadership Food Dealers of Michigan at 18470 Majority Leader-Ken Sikkema (R-Grandville) W. 10 Mile. Southfield. Ml 48075. Material contained within The AFD Majority Floor Leader-Bev Hammerstrom (R-Temperance) know? Food & Beverage Report may not be Assistant Majority Floor Leader-Alan Cropsey (R-Dewitt) reproduced without written permission President pro tempore-Patty Birkholz (R-Saugatuck) Keep up with the from the AFD. Assistant President pro tempore-Alan Sanborn (R-Richmond) The opinions expressed in this maga­ Assistant Majority Leader-Mike Bishop (R-Rochester) latest industry news zine are not necessarily those of the Caucus Chair-Wayne Kuipers (R-Holland) Sign up for AFD AFD, its Board of Directors, staff or Assistant Caucus Chair-Ron Jelinek (R-Three Oaks) members. Bylined articles reflect the opinions of the writer. Majority Whip-Jason Allen (R-Traverse City) Email program Assistant Majority Whip-Laura Toy (R-Livonia) POSTMASTER: Send address changes to AFD Food & Beverage Keep up on important issues Report, 18470 W. 10 Mile, Southfield, Senate Democratic Leadership facing the food and beverage industry Ml 48075. Minority Leader-Bob Emerson (D -Flint) with AFD’s new email program. Be Minority Floor Leader- Mark Schauer (D-Battle Creek) ADVERTISERS: For information on assured that you won’t receive advertising rates and data, call AFD, Ray Amyot, 18470 W. 10 Mile, South­ House Republican Leadership dozens of emails everyday and we will never sell our email list. We field, Ml 48075, (248) 557-9600 or Speaker of the House-Rick Johnson (R-LeRoy) (989) 386-9666. Speaker pro tempore-Larry Julian (R-Lennon) don’t email unless it is important! AFD works closely with the following Associate Speaker pro tempore-Steve Ehardt (R-Lexington) To sign up, email to Dan Reeves associations: Associate Speaker pro tempore-Barb VanderVeen (R-Allendale) at [email protected]. In the Majority Floor Leader-Randy Richardville (R-Monroe) message block simply say SIGN ME Assistant Majority Floor Leader-Bill Huizenga (R-Zeeland) UP! W e’ll do the rest. Assistant Majority Floor Leader-Jerry Kooiman (R-Grand Rapids) Majority Whip-Brian Palmer (R-Romeo) If you prefer, fill in the form Caucus Chair-Joanne Voorhees (R-Wyoming) below and fax it to Dan at Caucus Vice Chair-Shelley Goodman Taub (R-Bloomfield Hills) (248) 5S7-9610.

House Democratic Leadership N am e______Minority Leader-Diane Byrum (D-Onadaga) Assistant Minority Leader-Jack Minore (D-Flint) Company______Minority Floor Leader-Mary Waters (D-Detroit) Assistant Minority Floor Leader-Paul Gieleghem (D-Clinton Township) Em ail______Caucus Chair-Glenn Anderson (D-Westland) FOOD INDUSTRY association e x e c u t iv e s Caucus Whip-Carl Williams (D-Saginaw) Phone______

4 ...... AFD Food & Beverage Report, December, 2002 Burger King deal in News Notes L Engler makes question appointment to Diageo's sale of Burger King to Texas Pacific Group may not Organic rule takes effect Liquor Control proceed as planned, analysts say. The USDA's National Organic Rule took effect October 21 along with new The two groups will be meeting labeling guidelines and a new USDA logo that will help shoppers identify those Commission over the next few weeks to further foods that have been grown, processed and packaged in accordance with organic On October 22, 2002 Governor discuss terms of the deal that were practices. Only products with a minimum of 95 percent organic ingredients can John Engler announced the contingent on the fast-food chain use the seal. appointment of Jim McBryde to the meeting certain performance There are four new organic categories: Liquor Control Commission, which is targets. Diageo says it hopes to sell • 100 percent organic charged with the control of alcoholic the chain by the end of the year to • Organic, defined by the USDA as containing 95% of organic ingredients beverage traffic and consumption in focus on its liquor business. • Made with organic, that includes products with at least 70% organic Michigan. -Bloomberg ingredients McBryde, of Mt. Pleasant, is • Some organic products with less than 70% organic ingredients are only special assistant for drug policy in the allowed to list the organic items in the ingredient panel on the side of the Michigan Department of Community package. Health. He is appointed to a term Plenty of interest in expiring June 12, 2003. Adams candy Cadbury and Nestle have both expressed interest in acquiring Pfizer’s Adams candy business, which manufactures such brands as Certs, Clorets, Trident and Dentyne. Wm. Wrigley Co. also remains interested in the deal, which is expected to earn more than $4 billion. -Chicago Sun-Times

General Mills to close plants in Minnesota, Missouri The company has announced plans to close plants in Eden Prairie, Minn., and Hazelwood, Mo. Both plants manufacture frozen baked goods, which would be moved to other facilities. -Star Tribune

Advertisers move away from 30-second spots Managed Traditional Plan It’s the Blue Cross Blue Shield of Michigan member card, and Coca-Cola’s presence in Fox’s it’s honored by more doctors and hospitals in Michigan than American Idol is an example of any other health insurance card. branded products spilling into TV Community Blue PPO programs. Analyst Richard More people in Michigan carry this card with confidence. Tomkins says merging advertising Blue Care Network HMO The Blue Cross card — it can’t buy you everything, but what and entertainment is due to it does pay for, money can’t buy. marketers' lack of confidence in traditional TV ads. The trend also is For information about Blue Cross coverage available to AFD helping advertisers prepare for members, please call Sheila Reeves at 1-800-66-66-AFD. technology that eliminates TV commercials. -Financial Times

Consumers opting for lower-priced YOU and the POWER o f B l u e food items Industry observers say as consumers feel the financial pinch, Blue Cross they trade down and buy cheaper www.bcbsm.com Blue Shield Products. As a result, such retailers Blue Care Network as Royal Ahold, Safeway and of Michigan Kroger are reducing prices to Provide better value and remain competitive with Wal-Mart. Duluth News Tribune AFD Food & Beverage Report, December, 2002...... 5 Deputy Chief Ronald Haddad keeps an open door with retailers

By Kathy Blake Having grown up in Detroit, When Detroit Police Deputy Chief Haddad knows how early intervention Ronald Haddad started his career with can help set youth on the path to the Detroit Police Department, he success. He and his twin brother had didn’t just walk his beat. He became good role models while they were acquainted with store owners and growing up. Their father and a few residents in the east-side precinct he uncles were in the military. His father patrolled. He stepped out of his car was active in the UAW. “Ever since I and became involved with making a was a kid, I wanted to be an officer,” difference in his community. A said Deputy Chief Haddad. His twin lifelong resident of Detroit, Haddad is brother is the general manager of a dedicated to his city and protecting Sears Department store. the lives and livelihood of the people. Deputy Chief Haddad graduated Haddad developed relationships from Salesian Catholic High School with store owners who he says have and received an Associates Degree been open and honest with him. He from Highland Park Community found them to be powerful allies in College. He graduated with a fighting crime. Bachelor’s degree from the University Over his 30 year career, he has of Detroit M ercy in 1979. been a top crime fighter, has He graduated from Northwestern participated in many community University School of Police Staff and events and programs and has risen Command in 19%. While attending through the ranks of the 4,235- the academy, he was taking night member police force to his current them on crime, diversity and image organize picnics, basketball teams classes to earn his Master’s degree position as Department Executive issues,” says Haddad. and mentoring programs. “Those are from Eastern Michigan University. Staff Officer under the Chief of Haddad said the main problems the kinds of things that sustain good That was quite an accomplishment in with store image are litter and community relations and break down respect to the grueling training of the loiterers. “You don’t invest a million cultural differences,” says Haddad. police academy. Haddad has developed dollars (in a store) to have crackheads “Many convenience stores pour Haddad earned most of his degrees loiter outside.” Haddad says that relationships with store their hearts out for these program s,” while maintaining a full-time position store owners should not sell items Haddad says. “Not only do store at the police department. He started owners, who he that are used in the preparation and owners support these programs, they out as a police officer, then sergeant, says have been open sale of illegal drugs, such as Chore also provide sorely needed work lieutenant and inspector. It was while and honest. Boy wire, cigarette rolling papers and opportunities to people in the he was an Inspector at the 11 small tiny baggies. “When we reach community. I am very grateful for precinct that the chief told him to go out to the business sector, we ask the jobs they provide to hundreds of back to college for his master’s degree Police, Jerry A. Oliver Sr. them not to sell those items. We ask citizens.” so he could advance. Part of his new position places them to voluntarily refrain from Haddad is an ally to retailers. Within a year of completing his Haddad in charge of D etroit’s selling them.” Haddad adds that he AFD President Mike Sarafa says Master’s, he was appointed to Homeland Security. He says this will wants to make sure store owners have “Ron does a great job communicating commander o f the 11 precinct patrol involve educating the public and access to community policing. with small businesses. He’s operations, then Deputy Chief and county officers plus require upgrading He’s also affiliated with the responsive and sensitive to our needs. now Department Executive Staff equipment and communications American Arab Chamber of He helps us help ourselves.” Officer. technology. Haddad says these Commerce and the Chaldean Haddad and Detroit Red Wing, Haddad has built his career on hard changes will help protect the Federation. He helps with the Johnny Wilson established a World work, dedicated service and community from terrorists in addition Chaldean Annual Street Festival on 7 Class Leadership Hockey Program. maintaining open communications to making the police department more Mile. As a Lebanese-American, This is the fourth year of the program with the public he serves. He is a responsive. “That will make us a Haddad understands the issues that which allows youth between the ages motivator of people and sets a good more efficient police department to face people of ethnic origin, first- of 8-12 of lower income, to learn to example for Detroit’s youth as well as serve the community,” says Haddad. hand. play ice hockey while teaching them providing opportunities for youth The deputy chief serves on the Haddad has been involved with respect, teamwork and the importance enrichment. Metro Detroit Gas Station Owners Business United with Officers in of homework. Haddad says the kids Advisory Board. “We work with Youth, (BUOY), where he helped learn that it’s OK to be a leader.

6 ...... AFD Food & Beverage Report. December, 2002

Member Profile Bellanca family continues American dream More than 20 years ago Peter and generation Bellanca and the third Jim Bellanca began working with James V. Bellanca to be admitted as a AFD as legal counsel to the Board of lawyer. Directors. As such, the Bellanca In his service to the AFD Board of family and Bellanca, Beattie & Directors, Jim, Jr., has for the last 20 DeLisle has become a part of the years assisted AFD and credits extended AFD family. himself with the phrase AFD so often We wanted to share their family uses in its dealings with government story with you in part because it is a as it seeks to protect, preserve and story of an immigrant family’s voice the concerns of its members. success similar to many stories of “AFD wants to be part of the solution, AFD members. | not part of the problem.” James V. Bellanca, Sr. immigrated The Bellanca family’s immigrant to this country in about 1912 from background and Tony, Peter and Jim’s Italy. James was only four years old. AFD board member and legal council Jim Bellanca Jr. with his son, and third first generation approach not only to At the time, his father insisted that generation lawyer, James V. Bellanca III their ethnicity but to the opportunity young James get an education to take America has given them is at the very one night in a cold winter. The nickel father before him and his two advantage of the American dream. essence of the same American dream that they had leftover paid for a loaf brothers, Jim also became a lawyer, Ultimately in 1935 after having of so many members of AFD. of bread and some milk so that they being admitted to practice in 1969, married Rosalie Militello, an could fill young Peter’s hungry four years after his father’s death. Editor's Note: The holiday arranged marriage between their stomach and their own. For the next 30 years the Bellanca season, if it is nothing else, is a time respective parents, James, Sr. was A little less than 30 years later, brothers worked together in the firm for family, a time for thanksgiving, a admitted as a lawyer in Michigan. James Bellanca would see his son that grew to be known as Bellanca, time for new promise. We hope as The first fee that he earned was 15 Peter become a lawyer, followed by Beattie & DeLisle. you have read this story you share cents, a considerable sum in the late his other son, Anthony. They worked Peter Bellanca died in 1998. Now, with us those same feelings of days of the depression. Enough only for a brief time together as four years after his death, James V. thanksgiving.. ..hope and promise. money to pay for admission to GEM Bellanca, Bellanca and Bellanca. Bellanca, in, Jim’s son, named after From the Bellanca family and from Theatre and its all-night movies so James, Sr. died in 1965 while his his grandfather, has graduated Cum the AFD family, we offer you the that Rosalie and Jim and their infant youngest and only remaining child, Laude from Wayne State University best of the holiday season. son, Peter, could at least be warm for James, Jr. was in college. Like his and has been sworn in as the third

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g ...... AFD Food & Beverage Report. December, 2002 AFD Food & Beverage Report, December, 2002...... 9 Food industry gains productivity ground A new study says that food distributors have outperformed other U.S. wholesalers in total sales.

The report was prepared by flat, at 3 percent. the report says that wholesale grocers’ According to the 2002 Industry Insights Inc. of Columbus, • Sales jumped from 4.2 percent to sales grew 6.6 percent overall, sales of Distributor Productivity and Ohio, using 2001 information 6.6 percent. high-performing firms grew 8.2 Financial Report published by provided by 20 wholesale grocers • Accounts receivable fell from 15 to percent. The “Anatomy of a Food Distributors International and 32 foodservice distributors. 13 days. Successful Wholesale Grocer” section (FDI), wholesale grocers The most significant results for • Asset turnover fell from 6.2 to 6.0 outlines the characteristics of a high- experienced a 6.6 percent sales wholesale grocers were: but was consistent with the ten-year performer, such as 2.6 percent warehouse operating expense (as a gain, and foodservice • Return on net worth soared average. from 16.3 percent in last year's • Financial leverage (ratio of assets to percent of sales), vs. 3 percent for a distributors’ sales grew 7.1 report to 20.9 percent this year. net worth) rose from 2.4 to 2.9. poor performer. percent, at the same time that • Payroll as a percent of sales The report breaks down much of its The report offers guidance on how overall U.S. wholesale sales fell rose slightly, from 5.4 percent to information by category to make it companies can improve their own 1.3 percent (before the effects of 5.7 percent, but non-payroll easier for companies to measure their financial performance starting with inflation). expenses as a percent of sales were own performance. For example, while accurate measurements. For example, one section explains in detail how to estimate Sustainable Growth Rate to enable a company to grow without additional borrowing. The trends for foodservice distributors were a little different, the report says. For example, sales were higher than for wholesale grocers and for all wholesalers, but the foodservice channel's 7.1 percent showing represented a drop from 9.0 percent in the 2001 report. Before-tax return on net worth, however, jumped from 12.6 percent to 16.6 percent, and asset turnover improved from 4.7 to 5.2—the highest since 1996. Inventory turnover was unchanged at 13.4. As for wholesale grocers, the report profiles a Successful Foodservice Distributor. The high-performer has total operating expenses of 14.7 percent of sales, vs. 16.9 for the average poor-performer, 13 percent total return on assets (vs. 4.2 percent) and before-tax net profit that is 2 percent of sales (vs. 0.2 percent). The report makes extensive use of charts and graphs in an effort to help companies determine quickly and easily where their own performance fits into the overall industry picture.

Irradiation approved for imported produce The U.S. Department of Agriculture has published a new rule permitting the use of irradiation on imported fruits and vegetable that are often subject to fruit-fly infestation. Currently, the only irradiated produce sold in the United States are papaya and some other specialty fruits from MAGAZINES Hawaii. Expanding the process to cover all imported fruits and NEWS vegetables could have a substantial impact, given that up to 40% of Wholesale Distributor produce sold domestically is imported, industry observers said. Under Metro Detroit • Suburban News current federal law, individual units of irradiated food must include 24808 Romano • Warren, Michigan 48091 appropriate labels and symbols, or be 586-756-4000 • Fax 586-756-4060 merchandised under signage, covering the entire display, that states the product has been irradiated.

10...... AFD Food & Beverage Report, December, 2002 News Notes Fleming sells 28 stores Kmart searches for answers Kmart Corp. subpoenaed some of got $28 million in forgivable loans a Fleming Cos. the leading U.S. continue the process of selling the its former employees in its few months before the company filed grocery supplies distributor, said it remaining stores this quarter and investigation of the factors that led to for bankruptcy. In December 2001, would sell 28 of its California-based next year. the company filing for bankruptcy Wulfers got a $750,000 loan; he food stores to Save Mart Supermarkets Save Mart, with 97 stores, court protection. departed the company in May. for up to $165 million, which it will operates in California under the Dow Jones reports that Kmart is The filing from Wulfers’ lawyers use to pay down part of its $2 billion Save Mart, Food Maxx, and S-Mart looking into staff members’ travel apparently included information about debt. banners. Shares of Fleming — records and relocation expenses as it Wulfers’ flights on the company’s The sale, part of a plan to divest a whose retail store operated under probes for possible misconduct by the corporate jets, his relocation total of 110 loss-making supermarkets, Food 4 Less and Rainbow Foods company’s former management team. expenses, and denies that Wulfers or is expected to be finalized within 60 brands — closed at $6 last month on Attorneys for Kmart’s former his family received any gifts related days, Fleming said in a statement. It the New York Stock Exchange, division president William Wulfers to his job at Kmart. said upon closing, the deal would let it where they hit a 52 week low of filed a response and objection to the The FBI and U.S. Securities and be the supplier for the 28 stores. $2.60. com pany’s subpoena. Wulfers is Exchange Commission are looking Fleming, which has seen its shares among the 25 Kmart executives who into possible criminal conduct. stuck at 30-year lows for nearly two months, announced plans to sell its 110-store retail division, saying the unit had become a drag amid fierce ONLY LICENSED competition from other retailers, MICHIGAN COMPANY Leading Edge including giant Wal-Mart Stores Inc. Technology, Dallas-based Fleming, which ranks MICHIGAN Experience ahead of Supervalu Inc. said it would Consistently voted #1 for Customer & Service! Service In the Industry! Helpful numbers H a p p y Holidays! for retailers MONEY ORDERS Michigan Department 1-248-304-1900 of Agriculture Building Quality in a 1-800-292-3939 Growing Market Discover Security Express Michigan Liquor Control Money Orders Commission SECURITY EXPRESS OFFERS YOU: (517) 322-1400 MONEY TRANSFER SYSTEM •Profits from Increased Transfer money throughout the world with a high margin Store Traffic of profit to you and very low cost to your customers. Michigan Lottery •RapidMoneys“ customers will receive information via our •Low Cost (517) 335-5600 advertising promotions and public relations program Money Orders in Seconds in your market. •Speed Reporting and •Your business and locations will be included in No Bookkeeping WIC (517) 335-8937 our advertising. ■RapidMoneysu will promote customer traffic to your store. Expert Sales Consultation EBT Customer Service ADDITIONAL SERVICES: 1-800-350-8533 Start the New Year Right! Discover the Difference! W HAT THE Stored Value Card BIGGER PROFITS • BETTER SERVICE LEADER Food and Nutrition Service/ Tarjeia de Valor Acumulado Food Stamps $$$$$$ Direct Authorized Agent IN MERCHANT Detroit •Utility payments system PROCESSING PRE-PAID CREDIT CARD (313) 226-4930 OFFERS Money Transfer YOU Grand Rapids ATM CARDS (616) 954-0319 Credit Card Processing •CASH GIFT CARDS •Innovative Michigan Consumer and Technology * Store money - safe and secure. H a p p y Industry Services • Make telephone calls. •Exceptional Value' * ATM withdrawals. •Superior (517) 373-1580 • It s reloadable. Holidays! Customer Service Michigan Department of Treasury/Tobacco $ecurity Expre$$ Money Orders (517)241-8180

Michigan Department of 1-248-304-1900 Attorney General (517) 373-1110 AFD Food & Beverage Report, December, 2002...... 11 Lottery Lowdown New “WINFALL” game to replace Michigan Millions

Saturday, January 18, 2003 marks six numbers from a field of 49. jackpot - is paid out to the match five, the Final drawing o f M ichigan “WINFALL" jackpots will start at $2 match four and match three winners. M illions. It will be replaced by a million and a player wins the jackpot These prizes will end up being brand new game - - “W IN FA LL" - - by matching all six numbers. Players roughly ten times the amount they which goes on sale January 19, 2003. can also win great cash prizes by would be in a regular drawing! This exciting new game is fun, easy matching five, four or even three Instead of one winner taking home to understand, easy to play and best numbers. millions, “WINFALL” creates of all, offers a whole new way to The “WINFALL" jackpot will thousands and thousands of big win! “WINFALL” may remind continue to grow until it reaches $5 money winners across the state. many of you of “Michigan Lotto," million! If no one matches all six The “WINFALL” game is the game replaced by "Michigan numbers by the time the jackpot hits expected to attract many new players M illions." $5 million, all of the prize money - since the overall odds of winning any By Acting Commissioner James Kipp Players will again simply choose including the cash accumulated in the cash prize are just one in 54! Players are not the only ones who will win big with this new game! The Lottery expects to see thousands of match three winners for each drawing, so Lottery retailers can expect to see many players turn those $5 prizes into more Lottery sales. The cost to play “WINFALL” is just $ l per wager. The first “WINFALL” drawing will be held on Wednesday, January 22, 2003. Just like Michigan Millions, “WINFALL’ drawings will be held on Wednesday and Saturday evenings. If no one matches all six numbers in the final Michigan Millions drawing on January 18, the jackpot prize money will automatically rollover to the jackpot for the first “W INFALL” drawing. If the remaining “Michigan Millions” jackpot exceeds $5 million and no one matches all six numbers in the first “WINFALL” drawing, the jackpot prize money will be paid out to winners at the other prize levels! A statewide television and radio advertising campaign to help boost sales in your stores will accompany, the launch of “WINFALL”. Each Lottery retailer will receive a full Limited counter space? No problem. array of point-of-sale materials. elcome to the future of quality I encourage you to prominently and performance. Introducing Choose the FBD 5 5 0 with the smallest display these materials to generate Lancer’s FBS Series of frozen footprint currently available; it will fit in interest in this new game. beverage dispensers the smallest of spaces. If space is not a Additionally, a buy one, get one free the 5 5 0 and the 554. problem, try our FBD 554, with four coupon insert will be sent to adults in W select home-delivery newspapers barrels available for a variety of brands; • Stylish, sleek design throughout the state. • Large, contemporary graphics sure to provide a refreshing frozen • "Next generation platform” for future beverage every time, while you ROLLDOWN BUY ONE, GET upgrades. ONE FREE: This month the Lottery • State-of-the-Art technology INCREASE YOUR PROFITS! is giving players an extra opportunity to win big with its Michigan Rolldown game! During the week of For more information, contact your local LANCER Distributor at: December 8, 2002, special flyers were inserted into more than 50 home- delivered newspapers across the state. FOOD Each flyer features a buy one, get one free coupon for the Michigan EQUIPMENT Rolldown game! The coupons expire INCORPORATED on January 5, 2003. 5350 E. Davison • Detroit, Ml 48212 Grand Rapids, Ml 49603 RETAILER COMMISSIONS: Nearly a year ago, the Michigan (800) 899-9DCI (616) 243-8863 Lottery implemented a new retailer

See Lottery, page 23

12...... AFD Food & Beverage Report, December, 2002 The 87th Annual Trade Dinner and Ball of the Associated Food Dealers of Michigan

Spend a romantic evening enjoying superb cuisine, dancing and entertainment with more than 1,000 industry leaders!

Friday, February 14, 2003, Valentine’s Day at Penna’s of Sterling Co-Chairs: John Jonna, Merchants Fine Wine and Syd Ross, General Wine and Liquor Co.

Platinum Sponsor. $10,000 Silver Sponsor $4,000 (Limited sponsorships available) •One table of 10 for dinner (Preferential seating) •Three tables of 10 for dinner (VIP seating) •Five company images for media presentation •30-second video or fifteen company images •Corporate signage at the dinner for media presentation •1/4 page ad in the Food & Beverage Report 'Title sponsorship signage for music, photo booth or centerpieces • Use of one company product •Full page ad w/ spot color in the Food & Beverage Report at the dinner (or one additional image •Use of four company products at the dinner in media presentation) (or four additional images in media presentation) •$800 for each additional table • $600 for each additional table Please call Michele Gold Sponsor $7,000 MacWilliams for Bronze Sponsor $2,500 •Two tables of 10 for dinner (Prime seating) •One table of 10 for dinner • 15-second video or 10 company images for media presentation reservations and •Two company images for media presentation •Corporate signage at the dinner sponsorship •Corporate signage at the dinner •1/2 page ad in the Foods, Beverage Report •1/8 page ad in the Food & • Use of two company products at the dinner information: Beverage Report (or two additional images in media presentation) •$900 for each additional table • $700 for each additional table (248) 557-9600

AFD Food & Beverage Report, December 2002...... 13 Two “Baker Boys” make dough in Traverse City

By Michele MacWilliams America. “Fudgie” is the term that “locals” 6 p.m., Monday room, with the counters and register Three years from Northern Michigan towns like through Friday; 7 separating customers from the baking ago Brad Traverse City, Mackinac Island, a.m. to 3 p.m. on area. A caricature of the two “Baker Mullet and Petoskey and Charlevoix give to Saturday and is Boys,” (the name Baker Boys is their Scott those who come up for vacation. The closed on Sunday. company DBA) is etched into the Carpenter term was coined because these Either Brad or picture window and is repeated on an opened the tourists make the usual stop in the Scott must arrive interior wall. Great Harvest fudge shops to bring home the at w ork between There are a few tables in the front franchise in confection as a sweet memory of their 3:00 a.m. and 4:00 of the store, where people can enjoy a Traverse City. trip. When in Traverse City, a.m. each day in coffee or juice and a slice of free Friends since however, it may be wise to forgo the order to bake for bread, as they watch the Baker Boys elementary fudge and head for the Great Harvest the morning rush. at work. school, they bread store instead. Being a multi­ The store publishes a weekly Bread had worked Located on Garfield, just west of tasked individual Schedule that lists the specialty breads together at a the airport in the Garfield Plaza, is a big plus when it comes to running baked on each day of the week. As Great Harvest store in Okemos and Great Harvest Bread Company tempts this busy store. Brad kneads two an example, cinnamon swirl, pumpkin customers with the welcoming aroma enjoyed the experience. loaves of bread at a tim e - one with walnut, sunflower mullet and The two friends parted ways to of freshly baked breads, rolls, each hand - while greeting customers, cinnamon chip and a baker’s choice muffins, cookies and scones. Once attend college but after graduation answering questions and giving are featured on Mondays, while apple inside, customers are greeted with a they both ended up working in crisp, cinnamon swirl, nine grain, warm hello, and an invitation to pizza swirl, spinach feta, cherry sample a slice of one of the daily walnut and sourdough are the bread specials. A case at the counter Thursday selections. In addition, displays the breads for sampling. white and honey whole wheat are Customers choose what they want to baked daily. try and receive a generous one-inch The selection of cookies, muffins slice, with butter and jam if desired. and scones changes each day too, and The company’s mission statement, cinnamon rolls are always available. “Be loose and have fun, bake Since there are no preservatives in phenomenal bread, run fast to help Great Harvest bread, care instructions customers, create strong and exciting are printed on the back of the bread bakeries, and give generously to schedule. They warn never to put others,” is boldly printed on the wall bread in the refrigerator. Store it on behind the kneading tables. The the counter for seven to 10 days or in atmosphere of the store reflects this the freezer. statement, as the continuous stream of Great Harvest Traverse City has 12 customers is greeted with friendly employees and since its inception smiles. three years ago, has been on a steady The concept is not new, Great path of growth. “We saw a big jump Harvest Bread Company is a this year,” says Brad. “Although the franchise that has stores in Ann economy is down, we haven’t seen it Arbor, Birmingham, Brighton, Brad packs a load of Great Harvest products in Tamra Jones' car. Tamra owns Java here,” he adds, saying that most o f the Jones in Elk Rapids and says Great Harvest has the best scones in the area. Commerce, Farmington, Grand store’s sales come from local Rapids, Lansing, Northville, Okemos residents so tourism fluctuations don’t management for Fastnel, an industrial instructions to employees. and in 35 other states. make much of an impact. As more supplier - Scott in California and They bake between 300 and 500 It all began in 1972, when Laura locals discover Great Harvest, Brad in Colorado. loaves of bread each day their busiest and Pete Wakeman paid for their business has grown. Desiring their own business, they time of the year is November and college education by selling bread Is getting up at 3:00 a.m. and began checking into opening a Great December, however they have a they made in a garage. After college slaving over a hot oven for 12-hour Harvest in Michigan. Traverse City steady stream of customers year- they opened their first Great Harvest days more appealing than working for was the chosen area, since Scott has round. bread store in downtown Great Falls, an industrial supplier? Both Brad and family living nearby, the city is large Great Harvest supplies bread for a Montana, doing everything by hand, Scott say “yes!” Owning your own enough to support the store and, most few select restaurants but 95 percent with all-natural ingredients. The business, being able to live in importantly, both men wanted to live of the business is retail. business was a hit, and in 1978 the beautiful Traverse City, getting to there. Most of the work is done by hand, first franchisee opened its doors in know people in the community and In 1999, the two left their jobs, and the store even mills its own flour Kalispell, Montana. By 1995, Great making them smile...these are things moved back to Michigan and in daily. Wheat berries, for Great Harvest had over 100 bread stores in that make the hours zip by and August, opened their own Great Harvest’s wheat bread, are fed into a 34 states. Today, over 25 years since owning a Great Harvest franchise Harvest Bread Company. mill in a back storeroom. its inception. Great Harvest has worthwhile. The store is open from 7 a.m. until The store is basically one open almost 200 bread stores across North 14...... AFD Fobd & Beverage Report, December 2002 The Phone In A Box sells itself!

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18..... AFD Food & Beverage Report, December 2002 Member Profile Cuisine de France makes baking French bread simple

By Karen Braschayko advertise and show off the products to butter,” explained Frantz. A state of With little effort, it is now possible attract customers. All baking can be the art plant is under completion in to bring the smell of freshly baked completed during the day, “so that no Canada. Quality control is a point of French bread to Michigan grocery and night bakers are needed. You can fill pride. convenience stores. it full during the day,” explained After 14 years, Cuisine de France Cuisine de France can “create a Frantz. has become the top seller in the bakery or enhance a current setup, Cuisine de France will work with category in Europe and rapidly with minimal labor and minimal businesses to get the store up and growing in the United States. skill,” said Kathleen Frantz, business baking. “We are willing to provide Contact Kathleen Franz at (847) development coordinator. With a stands and equipment based on 378-5340 and see the full range of minimum of one square yard of space mutual agreement. If deemed products at www.instorebakery.com. to set up the movable oven and Cuisine de France at the necessary, we’re willing to cooling rack, Cuisine de France’s full AFD Trade Show invest in the company and range of bakery products can be hot simply need to be slipped in an oven. develop it, help manage the from the oven. “Our quality philosophy is fresh— category and advance it,” Sicilian or Venetian loaves, Irish we don’t promote prepackaged food,” smiled Frantz. Customer fruit soda bread, Polish rye bread, said Frantz. service is top priority. ciabatta, French baguettes—an The ovens make baking as fuss- A multimillion dollar international range of breads and free as possible. They are one-touch company based in Dublin, baked goods can make your store a preprogrammed and custom Ireland, Cuisine de France is neighborhood hit. Whole wheat to manufactured to the product’s needs. rapidly-growing international pumpernickel, fruit or chocolate But if a business already has an oven, success. The products have pastries to donuts, and bagels to all it can be used easily as well. been spreading through kinds of muffins. Cuisine de France packaging is Michigan for two years now. These premium products are designed to maximize the impulse “All products are shipped frozen or par-baked and sale. Attractive wooden displays made with European flours Cuisine de France bread was a hit at the AFD Trade Show.

A n d it Was said o f him

that he knew how to

spend C hristm as W ell. If

any m an alive possessed

the knowledge. A n d m ay

it he saib of us.

and all of us. A n d so.

as Tiny Tim

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bless us. everyone! A Christmas Carol

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AFD Food & Beverage Report, December 2002.....: 19 Liquor Control Commission provides Internet ordering option The Michigan Liquor Control Commission announces that its Internet Liquor Ordering website is now open for business to all liquor licensees. Liquor licensees must sign up to use the application.

“I applaud the Liquor Control way that works best for them, such system throughout the day the order is usual. This makes the system even Commission and Michigan as placing separate orders closer to placed and make updates to that order. faster and easier to use than other Department of Information each ADA delivery day. Items can be added, deleted or types of ordering. Technology staff for working “This new website enables all changed throughout the order day. The Michigan Liquor Control extensively on this project throughout liquor licensees to order their liquor “The program was piloted with a Commission Internet Ordering 2002 in order to bring this exciting at their convenience 24 hours a day small group of liquor licensees who application is a cooperative effort new service to Michigan liquor retail on-line,” Jacque Passino, DIT agreed to be first to both test and use between the State and its Authorized licensees and better serve their Director said. “One of the key the system. We’ve received very Distribution Agents. The State system customers,” said Noelle Clark, features is that the system checks positive feedback from the test group, communicates with Authorized director of the Michigan Department inventory availability for every item so we are opening the program up to Distribution Agent information of Consumer & Industry Services, of each ADA. all licensees to use,” said Dan systems to obtain delivery dates and which oversees the Michigan Liquor Our team implemented the newest Gustafson, LCC Chairman. “We inventory availability information. Control Commission. technology available in order to expect a significant number of The Authorized Distribution Agents State of Michigan Liquor Internet provide this feature on the new licensees will want to take advantage are partners with the Commission in Ordering offers ordering flexibility to ordering system to ensure that of this convenient new program. making this convenient service liquor licensees and is the latest customers receive the latest The Liquor Control Commission available. enhancement to the award winning information on product availability launched an Electronic Fund Transfer Licensees wishing to use this free Michigan.gov web portal. and delivery to better serve their program in 1999 and it has been a service must first obtain a password Those who wish can place one inventory needs.” huge success so we know our and user ID. The address to access the order for all their liquor for the week, Licensees placing an order via the licensees are always willing to Michigan Liquor Control and receive it on their next regularly website receive an email embrace the newest technology to Com m ission’s web page is: scheduled delivery day. The system confirmation of the order, including save time and make the ordering www.michigan.gov/cls, then click on will divide up the order by Authorized transaction confirmation numbers, process easier.” the Liquor Control button in the left- Distribution Agent (ADA) and show delivery dates, a listing of items No payment information is hand column. The website provides the person placing the order the ordered, and price. required or taken by the Internet information for licensees on obtaining delivery date for each ADA. Licensees who use the Internet ordering system. Licensees pay by a passw ord to start using the Licensees can also choose to order the ordering system can go back into the EFT, check or cash at delivery time as Com mission’s Internet Ordering system.

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20...... AFD Food & Beverage Report, December, 2002 Look what just blew in for the holidays! Four great new holiday-themed instant tickets, each designed to whisk more holiday shoppers into your store. Stock up and recommend them - along with the great variety of other instant tickets - as perfect holiday gifts. Take advantage of this selling season, before the holidays are gone with the wind!

AFD Food & Beverage Report, December, 2002...... 21 Security tips for shopkeepers: staying safe and preventing ethnic violence By Rosemary J. Erickson, Ph.D., president, Athena Research Co.

The following was originally developed Oct. 12, 2001, but remains timely with continuing safety concerns. It is reprinted with permission from author Rosemary Erickson. This, and other documents related to retail safety and security, can be viewed at www.athenaresearch.com .

There are many steps you can take to safeguard your employees and • Remove signs from windows to provide clear lines of visibility to the customers. After the events of September 11, ethnic hostility and other criminal cashier. activity may jeopardize the security of both employees and customers. Follow • Move displays that block visibility to the cashier from the outside. this advice: • Make sure that security cameras are working. • Take every threat seriously • Keep tapes for longer than usual because details that may not mean • If som ething seems wrong, it probably is. anything at the time can be critical to the police. • Follow your instincts. • Remember that people are the best form of surveillance. • Call management to report any suspicious activity. •Be alert to your surroundings and report any problems. • Call the police if necessary. • Watch for suspicious behavior, not suspicious people. Suspicious Mail Here are some of the things, adapted from the U. S. Marshall’s Office and These are the signs of possibly suspicious behavior, if anyone: U. S. Postal Service, to look for that could indicate a bomb or biochemical • Parks for an unusual length of time in or near the parking lot. agent, such as anthrax, in a package or letter: • Comes into the store, but does not make a purchase. - An unusual or unknown sender or place of origin • Asks an employee’s nationality. • No return address • Returns to the store after having been in there earlier. • Mail that you are not expecting • Seems agitated or raises their voice. • Postmark does not match return address • Makes inflammatory or derogatory remarks. • Has a restricted address, such as confidential, personal, etc. • Verbally or physically threatens employees or customers. • Incorrect spelling on the name or address • An excessive amount of postage If a threatening note, sign, message, or recorded message is left at the • Abnormal or unusual size, shape, or weight location, save it and report it to the police. • Uneven balance Follow these security rules: • Oily stain on the package • Peculiar odor (explosives may smell like shoe polish or almonds) Territoriality • White powder or other substance on the package or in the package • Define your territory with: • Wires or strings protruding from or attached to an item 1. Landscaping. 2. Fences. If you see one of these things, do the following: 3. Signs. • Do not touch or move the object. • If graffiti shows up on your building or fence, take a picture of it for the • Do not inhale the substance. police and have it removed immediately. • Contain the area immediately, such as closing a door, and moving to • Keep the store and parking lot neat, clean and free of litter. another area. • Immediately wash your hands. Access Control • Call the police, FBI, your management, and/or public health officials. • Limit the number of entrances and exits to the store and the parking lot. • Install gates, locks, or turnstiles. There is no guarantee of safety, but these steps have been shown to help • Use guards, if necessary. increase security and reduce the risk of harm. For additional suggestions, you may refer to related publications and research updates listed on Surveillance www.AthenaResearch.com. • Use lighting and cameras, both inside and out. Grocery store owners entitled to Spartan Stores chairman to retire Spartan Stores, Inc., announced a highly qualified successor with a attorney’s fees and costs that James B. Meyer, Chairman, proven track record and retail industry experience. Mr. Meyer will Married grocery store owners lacked a reasonable basis for President and Chief Executive continue to serve in his current role were entitled to attorney’s fees and comparing receipts from a low- Officer has informed the board of as Chairman, President, and Chief costs incurred in their challenge to income grocery store chain to the directors of his intention to retire Executive Officer during the tax assessments made by the IRS. national average. next year. The exact date of Mr. transition. The IRS’s position in underlying Tax Attorney’s fees awarded to the Meyer’s retirement will be based on Court litigation that the taxpayers grocery store owners were limited to the time necessary to achieve an orderly and seamless transition. understated their income was not the statutory amount of $140 per “It has been an incredible pleasure substantially justified. Because the hour because no special factors were to be a part of Spartan Stores for the taxpayers failed to provide the daily present warranting an increase. Even past 30 years,” stated Mr. Meyer. receipts for the entire years at issue, though the taxpayer’s attorney was Mr. Meyer has been with the the IRS used national gross profit highly educated and was recognized Company since 1973, served as statistical data prepared by Dun & publicly as a tax specialist, this did President since 1996, Chief Bradstreet to establish that the not warrant additional costs where Executive Officer since 1997, and taxpayers understated the income of the facts of the case did not require Chairman since 2000. the stores. The grocery stores, such skills in order to prevail- Spartan Stores, Inc. has engaged however located in a depressed urban Submitted by Randy Denha o f Cox, Korn/Ferry International, an area where most purchases were Hodgman & Giarmarco, P.C. made with food stamps. The IRS executive recruiting firm, to immediately commence a search for 22...... AFD Food & Beverage Report. December, 2002 Lottery AFD’s Video Library: Continued from page 12 games will make their debut on Training is the Key commission structure for its instant December 19 - - the $1 “Instant games. The new commission Numbers” with a top prize of $3,000, In today’s ever-changing world, the need for quality employees has never structure is incentive-based, and is and the $5 “Sky’s The Limit” with a been greater. Once you have found that “perfect” employee, then what? In designed to help increase sales and top prize of $250,000. order to get the most out of the new hire you must train them to do the job provide you with more control over correctly and efficiently. How do you go about it? Fortunately the Associated your earnings. HAPPY HOLIDAYS: I want to Food Dealers of Michigan can help you through their vast loan library of For the first three quarters of 2002, take this opportunity to say a special training videos. The library contains a large selection of training videos to meet your needs in areas of customer relations, employee health and safety, food the Lottery paid out an additional $2 thank you to each of you. You are the safety and sanitation, marketing and merchandising, loss prevention and million in retailer instant front line of contact with Lottery training and development. commissions. Lottery retailers still players and your continued support of These videos are available for a maximum of two weeks and are loaned to earn a six-percent sales commission Michigan Lottery products has a AFD members at no charge. Non-members are charged a $20.00 rental fee. In on all instant games and the current direct impact on the Lottery’s success. either case a $5.00 shipping and handling fee is assessed. (There are no cashing and bonus commissions are May your holiday season and New shipping and handling charges for tapes that are picked up and returned to AFD) still in place. Year be filled with happiness and A refundable $50.00 Visa/Mastercard deposit is required. If your instant ticket sales, success. however, are a minimum of 2.5 percent higher during this quarter (October 1, 2002 - December 31, 2002) than in the same quarter last year, then you earn an additional one percent commission on your total instant ticket sales for that quarter. The extra one-percent is paid to qualifying retailers through their JOIN THE STORE CONTROLLER FAMILY Lottery Electronic Funds Transfer (EFT) account at the end of the quarter. Your sales goals will be announced at least 30 days before the start of the new quarter. » Liquor Shelf Tags The first quarter goal for 2003 is a • Employee Time Clock 2.5 percent increase over the same • Customer Address Labels period last year. Your district Lottery Coupon Manager sales representative or Tell-Sell agent • House Accounts can provide your historical instant • Wireless Receiving ticket sales information to help you Employee Commissions achieve your quarterly sales goals. ■ Web Store Integration TIP-TOP WINE Joe • Special Order, Layaways PARKWAY BEVERAGE Norm We appreciate the important role E ntire MLCC codes & prices im ported POS scanning was quick and easy to > Vendor Purchase Orders our retailers play in the continued learn. My lines move faster now. from State of Michigan web site Inventory Valuation success of the Michigan Lottery. We ■ E lectronic Keg Lists continue to strive to reward our • Food Menu-Friendly retailers with some of the highest- Employee Security paying commissions nationwide. • Great Reports This new program will pay out more commissions than ever before to our lottery retail partners. ASK ABO UT AFD MEMBER HOLIDAY CLOSINGS and DRAWINGS: The Lottery offices DISCOUNTS will be closed in observance of the S & M BISCUIT DIST. Nino Christmas holiday on December 24 BEVERAGE WAREHOUSE Rich The flexibility and strength makes POS a and 2 5 , as well as the New Year’s Fast service and support has kept his POS running smooth since 1985 » Scan Deli-Barcodes great wholesale solution choice holiday on December 31 and » C redit Card Processing January 1 » Fast, Hot-Keyboard Keys » No-Scan plays Sound NO DRAWINGS ON » Weigh Produce CHRISTMAS DAY: In observance » Electronic Receipts of the Christmas holiday, regular « e Mail Broadcaster Wednesday drawings for the Daily 3, • End-of-Day Coin Counter Daily 4, Michigan Rolldown, Change ■ Track Loyalty-Gift Cards Play, Keno and Michigan Millions games will not be conducted on Wednesday, December 25. All Michigan Lottery drawings will VINEYARDS - Ron Asmar LAKESHORE MARKET - John resume their regular schedule on Tracking brisk customer sales with new Spartan Grocery Store promos and scan- Thursday, December 26. frequent shopper and gift cards downs are managed effortlessly

NEW INSTANTS: We will be unveiling five new instant games in POS SYSTEMS GROUP 248- 689-4608 December. On sale December 5th, is S oftware Training - Networking - C omputers - S canners the $1 “ Cash Cow." with a top prize S cales - Keyboards - Receipt Printers - and more! of $4,000. On December 12 , the $2 “Ante Up" game hits stores, with a w w w .B u y POS.com top prize of $21.000. Two more AFD Food & Beverage Report, December. 2002...... 23 U.S. to offer $5 million reward C-stores asked to help spread word to break up terrorists’ financial networks

To energize efforts to financially discuss specifics on who got what for from charitable organizations. trail; bulk-cash and cigarette paralyze terrorists, the Bush fear of endangering informants. Last In October, administration officials smuggling; trafficking of diamonds, administration plans to offer a reward year, the government also announced told lawmakers that terrorists still gold and drags; and donations to of up to $5 million for information a $25 million reward for information have the financial muscle to carry out charities, administration officials said. that results in the breakup of networks leading to the capture of Osama bin fresh attacks on the U.S. For further information on the used to finance terrorist organizations, Laden. In tracking the terror money trail, reward and other anti-terrorist reports the Associated Press. The The government believes that by one of the biggest challenges is activities, visit the Treasury administration is planning a campaign offering the reward it may “gain new following money that moves outside Department at http://www.ustreas.gov to increase public awareness about the information and insights into how the traditional banking system. Those or Reward for Justice at http:// reward and will work with trade terrorist financiers are moving money other means include informal money www.rewardsforjustice.net. associations representing banks, for deadly purposes,” the official networks that don't leave a paper convenience stores, pawn shops and said. others to help get the word out, an After last year's attacks on the administration official said. World Trade Center and the Wal-Mart is forging a larger The reward would be offered for Pentagon, the U.S. led an effort to cut “information leading to the terrorists off from their sources of share of food category sales dismantling of any system or scheme financing. While that campaign has Supermarket share declines over last three years but shows a used to finance a terrorist yielded substantial results, more work modest upward trend over past three quarters. organization and information leading needs to be done, Treasury and State While supermarkets clearly continue to dominate in consumer food to the arrest or conviction of those department officials have said. shopping, their share of food dollars has slipped by three percentage who planned or aided in any act of Roughly $112 million in assets points over the last three years. The primary beneficiary? Wal-Mart, terrorism against U.S. persons or belonging to al-Qaida and its whose aggressive supercenter expansion, coupled with an increasingly property,” said the official. associates have been frozen value-conscious consumer base has created significant changes in The bounty would come from a worldwide since the September 11, consumer shopping patterns. Between 1999 and 2001, Wal-Mart long-standing “Rewards for Justice’ 2001, terrorist attacks. But U.N. achieved sizable gains in consumer penetration (+6%), shopping trips program administered by the State experts in the summer said al-Qaida (+11%) and spending per trip (+12%). Department, the official said. That is continuing to receive financial Food categories within supermarkets that are most heavily impacted program, created by a 1984 law, has support from bin Laden’s personal by a supercenter opening nearby include shelf stable grocery items, paid out more than $9.5 million to 23 inheritance and investments, from its frozen foods and refrigerated dairy. people. The government doesn’t own members and supporters, and Comparison of CPG Channel Sharos % Total CPG Food Dollar Sales

8 1 2 . % 8 0 . 5% 8 0 . 0 % 79.7% 8 0 .1 % 8 0 2 %

Supermarkets ■ ■ ■ ■

3 - 1 % 3 . 1 % 3 .3 % 3 . 5 % 3 .6 % 3 3 % 2 . 9 % Drugstores Redeem your manufacturers' coupons with us... 1 3 .7 % 1 3 .8 % 1 4 .1% 1 2 .4 % 1 3 .0 % 1 3 3 % 1 0 .3 % ■ ■ ■ ■ ■ ■

Total Mass 1 5 .7 % 16 .7 % 16 .8 % 1 4 .3 % 16 . 6 % 16 . 7 % Merchandisers (In c lu d i n g W al-M a rt) 2 0 0 0 2 0 0 1 YE 0 4 Q 1 0 2 02 0 3 1 0 . ( 0 2

It’s That simple! You can count on us! Put your coupons in a box White House announces regulations Over 250 AFD or strong envelope. grocers use our (No need to count or sort). to promote generic drugs coupon redemption On October 21 President Bush stay which delays approval of a service... this Bring your coupons to AFD. announced a new rule that would give generic drug application when issues is proof we do Americans greater access to less arise regarding potential patent it the way costly generic drugs. The proposed infringement. The proposed CASH YOUR CHECK! regulation would in effect close regulations are also expected to make grocers like it. loopholes in the “Hatch-Waxman” it more difficult for brand-name drug law, which governs how generic drugs companies to delay generic drug THAT’S IT... THE REST IS OUR JOB! are allowed to compete with their competition by filing frivolous or more expensive brand-name inappropriate patents while requiring • Quick, efficient and accurate processing of your counterparts. According to more detailed information on their coupons is started immediately. information released by the White patents when filing a new drug House, the new rulemaking could application. result in savings of over $3 billion a While the Federal Trade year on consumer expenditures for Commission (FTC) called for such YOU CAN COUNT prescription drugs. reforms in a report that was released The proposed rulemaking would back in July, the Administration is ON US-WE'RE make significant changes in brand- now taking a positive step toward name drug companies’ use and addressing the problem through the reliance on the automatic 30 month regulatory process.

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AFD Food & Beverage Report, December, 2002...... 25 7UP turns things upside down with dnL perspective upside down - or as we like to say 'Flip 7VP turned the cola world upside down in 1967 when it I t,'" said M ike M cG rath, president and chief introduced its famous “Uncola" marketing and operating officer of Dr Pepper/Seven Vp, Inc. advertising campaign, which featured the crisp, clear "dnL provides our teen and young adult taste of 7 VP in an upside-down cola glass. Today, consumers with a one-of-a-kind taste and the makers of 7 VP are once again turning a kick o f energy they’ll love." things upside down with this week's rollout of Beginning in November, their newest soft drink called dnL. consumers in approximately 60% Billed as the "upside-down” or o f the country were able to find "flipped " 7VP, dnL 's arrival satisfies the clear 20-ounce bottles of changing tastes of consumers who have dnL on store shelves. demonstrated that they want new and different Distribution of the 20 -ounce beverages to quench their thirst. Targeted toward package will be expanded teens and young adults, dnL is bright green in color, nationwide in January. Take-home includes a kick o f caffeine and features a blend of fruit packaging, including 12 packs and 2- flavors. liters, w ill roll out in April 2003. "dnL offers consumers a chance to turn their thirst and

Mistic offers a Taste of Paradise Last month Mistic introduced two new beverages that are bolder than ever before, Lotta Colada and Bahama Blueberry. The tropically-inspired drinks are the latest additions to Mistic’s Tropicals line of juice drinks. The new blends, Lotta Colada and Bahama Blueberry, have tropical flavors targeted to the youth market. Lotta Colada is Mistic’s newest addition to the fast growing dairy category. Complete with a creamy texture and sweet taste, Lotta Colada delivers a blend of juicy pineapple and refreshing coconut flavors. Bahama blueberry has a blend of blueberries and raspberries. The drinks are available in easy-grip 16-ounce glass bottles. Other Mistic products include Tropical Haze, Purple Reign, Tropical Fruit Punch, Keebler Adds Knott’s Berry Kiwi Strawberry, Grape Strawberry, Mango Mania, Peach Beach, Watermelon Kiwi Pineapple Orange and Peach Cranberry. Mistic is a product of the Snapple Beverage Group, a unit of Cadbury Schweppes, Farms Cookies pic. The Keebler Co. has added Knott's Berry Farm Shortbread Cookies to its snack product line. Kellogg/Keebler will now distribute and sell both the 2-oz. and 3-oz. lines of these cookies to convenience stores nationwide. Knott's Berry Farm Cookies are bite-sized shortbread cookies prepared with Knott's Berry Farm’s fruit filling. The 2-oz. line flavors consist of Raspberry, Uncle Ray’s adds Boysenberry, Apricot and Blueberry. The 3-oz. line is prepriced at 99 cents and is available in all 2-oz. flavors, as well as Strawberry. The Knott’s Berry Farm brand is owned by Omaha, Neb.-based ConAgra Roasted Garlic to chip Foods Inc. Wine Spectator and lineup Detroit entrepreneur. Allied Domecq offer Uncle Ray (Jenkins) has come out with one more supplement on uniquely flavored potato chip, a Roasted Garlic website flavor chip. It is the latest Readers of the November 30 issue of the Opportunity in a broad product line that includes Kosher Dill, Wine Spectator discovered a bevy of useful wine to increase and food tidbits aimed at educating wine Ketchup, Mustard & consumers on the basics of wine equipment. pork sales Onion Coney, and Jalapeno chips and as Featured in a 16-page glossy color “Wine The National Pork many as 17 other unusual Lover’s Journal” supplement, was an array of Board reports that a flavors. Allied Domecq Wines, including Clos du Bois, recent surge in hog Certified Kosher, the Buena Vista Winery, Callaway Coastal, Brancott supplies has chips are made with high Vineyards, Perrier Jouet and Mumm “exceeded expected quality oil that enhances Champagne, Mumm Cuvee Napa sparkling levels by as much as 8 flavor. They are available wine, Cockbum’s Port and Marques de Arienzo percent.” The board in 23 states. Spanish Rioja wines, as well as Napa Valley notes that the resulting The company was wine producers, Atlas Peak Vineyards and “lower prices pose founded in 1965 and William Hill Winery. difficult times for produces 5,000 pounds of The Wine Lover’s Journal encourages tasters producers but great chips every hour. Each to sample the wines and make notes. The Journal opportunities for bag of chips has an was inserted in the Wine Spectator. For a retailers to enhance anecdote written by Ray downloadable email version of the booklet, go to store profits and drive Jenkins, along with a photo from his youth. Since June, 2000 he has written 34 winespectator.com or winespectatorschool.com. traffic.” chapters which have appeared on bags. 26...... AFD Food & Beverage Report, December, 2002 Engler appoints Gustafson to Letters Gaming Control Board Governor John Engler announced that he has Roy’s General Store adds hot food accepted the resignation of Nelson Westrin, executive Editor's note: This email was sent to Ginny Bennett, the director of the Michigan Gaming Control Board, and author of the November story “Traverse City store causes a appointed Dan Gustafson to succeed him. buzz,” which was about Roy’s General Store. Here are Westrin has resigned to accept a federal appointment photos of their new hot food bar. to the National Indian Gaming Commission. Ginny: “Nelson Westrin has done an outstanding job Ted and Roy have read the story and think it’s great. heading the Gaming Control Board,” said Engler. “He I told you we were working on putting in a hot food bar has taken a new board, guided it professionally and by request of our customers and we opened it ethically, and I am grateful for his service to the state of Wednesday this week, I wish you could have been here Michigan. As he prepares to serve on the National to see all the smiles and all the customers, we doubled Indian Gaming Commission, I wish him and his family our lunch sales the first day. That is a very satisfying all the best.” feeling to know you have made so many happy. Succeeding Westrin is Dan Gustafson, of Haslett, Thanks for your interest, who has served as the chairman of the Liquor Control Kathie Hentschel Caldwell Commission since December 2000. Previously, he served as chief of staff to Lt. Governor Dick Posthumus, a state representative and on the Ingham County Commission. While serving as a state representative, Gustafson was Republican vice chair of the oversight and ethics committee at the Delivers In More time the gaming control legislation was being debated, giving him thorough knowledge of and insight into M ichigan's gaming legislation. Gustafson earned a Bachelor of Ways Than One. Science degree from Oakland University in 1981 and a m aster’s of business administration degree from The George W ashington University in Washington, D.C., in 1983. He is appointed to a six-year term, expiring November 2008.

Small tobacco to up prices Survey shows increases coming in first-quarter 2003 The deep-discount category represents approximately 9% of total tobacco industry volume and has • Blue Cross/ Blue • Full Time Lobbyist • A/VLoan Library •Annual Trade Show successfully taken volume and share Shield Health Care • Formal Trade Dinner from the “big four” cigarette makers, •AFD PAC Committee • T.I.P.S. Seminars • Ameritech Payphone according to Salomon Smith Barney • Legislative Updates • Legal Consultation • Scholarship Golf Outing Program analyst Bonnie Herzog. And the • Liaison with Govern­ • Accounting Advice • Annual Seniors Picnic category is still growing— but at a • Verizon Wireless mental Agencies • Monthly Food & • Thanksgiving Turkey Drive price, as most small manufacturers are • Coupon Redemption Beverage Report expected to raise wholesale prices Program • Beverage Journal • Scholarship Awards Holiday Show early next year. • Clear Rate Long Distance SSB recently conducted a survey of some of the smaller manufacturers • MasterCard/Visa Acceptance and importers in the deep-discount For more information on any of these category. Small manufacturers • Northpointe Liquor surveyed serve approximately 1,257 Liability Insurance excellent programs, call: wholesalers and 130,300 retailers • Security Express ASSOCIATED FOOD DEALERS OF MICHIGAN nationwide. Among the survey’s Money Orders 18470 West Ten Mile Road • Southfield, Michigan 48075 findings was most small • AAA Auto 8 Home manufacturers expect to take a price Insurance 1 -800-66-66-AFD increase in the next several m o n th s. Herzog said. Approximately 58% • Star Workers or (248) 557-9600 Compensation Insurance expect to increase their wholesale prices by about 10 cents per pack. Most of these increases are expected to occur during first-quarter 2003. AFD Food & Beverage Report, December, 2002...... 27 Price of turkey dinner drops for third consecutive year Editor s Note: Each year, AFD Associated Food Dealers of Michigan pie. Beverages were excluded. traditional Thanksgiving dinner menu surveys Metro Detroit grocery' stores (AFD) the average price to purchase “We have surveyed retailers since are on sale during this time. Actual to determine the cost o f a traditional and prepare a traditional turkey dinner 1994 and found that dinner costs have prices vary from store to store. Thanksgiving meal. This information is $3.18 per person, down about 2 remained quite consistent,” says “This year stores are particularly is then released to Michigan media. cents from 2001. Sarafa. price conscious,” says Sarafa. “We’re Here are the results of this year’s AFD President Michael G. Sarafa The prices reflect the average cost seeing steep price incentives, like survey said the costs are based on a standard of items that can be purchased at turkey for 29 cents a pound.” Sarafa Even if your budget is tight, with turkey dinner for 10 people and supermarkets throughout the Metro also notes that some stores even offer a little shopping savvy you can includes all the traditional trimmings: Detroit area on the Monday of the free turkeys with additional purchases. loosen your belt after a big stuffing, mashed potatoes, gravy, week prior to Thanksgiving. This “Retailers are going to great lengths to Thanksgiving dinner without yams, green salad, fruit salad, year that was November 18. Sarafa make this a happy and affordable breaking the bank. According to the cranberry sauce, rolls, and pumpkin says that many of the items on the Thanksgiving for their custom ers,” he adds. Sarafa says that Thanksgiving is a great time to fill the freezer and stock pantry shelves, since most stores offer turkey and related items at or below 19th Annual their cost. McDonald's opening outlets in new Wal-Mart stores | McDonald's is opening new outlets inside Wal-Mart Discount Stores and Supercenters across the U.S. The fast- food chain is currently in about 700 Wal-Mart stores and plans to expand. Two days with 10 -Yahoo full hours of Consumer satisfaction edges up Custom er satisfaction rose to 73.1 A BUYING Trade Show percent in September, up from 72 that offers you new percent a year ago, according to the University of Michigan's American products and show specials! Customer Satisfaction Index. Analysts attribute the increase to companies responding to pricing pressure by offering better values.

Ice cream cartons shrink Rising ingredient costs coupled with an unwillingness to raise the price of a half-gallon of ice cream over $5 has many ice cream manufacturers reducing container size. Dreyer's cut its package sizes to 1.75- quart containers, and other companies are considering implementing similar changes. Vanilla Coke boosts soft drink’s earnings Robust North American sales of Vanilla Coke, diet Coke with Lemon and Minute Maid juice products contributed to the 8 percent increase of Coca-Cola’s quarterly earnings. The No. 1 soft drink company says the popularity of the new products increased its unit case volume by 9 percent. -Yahoo

28...... AFD Food & Beverage Report, December, 2002 SUPERMARKET EQUIPMENT FOR SALE-Meat Add SPDs to your list of department equipment, shelving, produce case, stainless steel sink, etc. Call 810-506-4404. WALK-IN COOLER FOR S A LE -10 door Also, Ann Arbor Bailer, Model 610. Will accept best offer. Both items at 1426 Broadway, Detroit. Call Joe business hurdles Aubrey at 313-965-7275. FOR SALE—"C" store with bakery, ice cream & general merchandise, good gross also BP Gas with brand new Clawson 10,000 gal. perma tank and enviro-flex piping, located downtown Roscommon, Ml. Call 989-275-6246 for more information. Buy business and property or just business and lease property. S.D.D. and S.D.M.—Liquor Licenses for sale. Call 586-634-3658. FOR SALE— 12,000 sq. ft. supermarket located in pleasant thumb town. Remodel done in 1996. SDD- SDM license. Possible easy terms— MUST SELL Information provided by Gadaleto, A Summary of Material (517) 879-7055 after 5:00 p.m. Ramsby & Associates Modification must be provided within ITEMS FOR SALE—(1) Hi-Low; (2) Jacks; (1) 20- Ft. Electric Conveyors, moveable; (1) 35-Ft. If you offer welfare benefits to your 210 days after the end of the plan year Conveyor; (1) 5-Ft. Showcase; (5) Sets Leather employees, there is a new regulation in in which the modifications are booths; (1) 400-Lb. Ice Freezer; More. Call for town. The U.S. Department of Labor adapted. Material reductions in appointment; 1-313-274-0028. (DOL) recently issued new regulations covered services or benefits need to SHOWCASES FOR SALE— 3 foot to 6 foot and 3 under ERISA requiring certain items to foot to 4 foot. Call Neil at (248) 252-4674. be disclosed no later than 60 days PARTY STORE—Choice location. Liquor, Beer, be disclosed to participants in a after the change is adopted. Wine, Deli, Lotto. Lapeer area. Interested buyers Summary Plan Description (SPD). Just a little effort in this area can inquire to P.O. Box 622, Lapeer, Ml 48226. The new regulations cover all types bring most plans up to compliance PORT HURON LOCATION—2 blocks from Blue of employee benefit plans including and prevent potential problems. To Water Bridge. Beer, Wine and Lotto. 8,000 sq. ft. group health insurance plans. All grocery equipped with deli, bakery and meat learn more, talk with your legal department, with smoke house. Includes real estate plans that have renewed for the second counsel or have your insurance agent and equipment. Always shown profit. Owner year as of January 22, 2001 are contact AFD. retiring— no reasonable offer refused. More required to report under the SPD needed includes the following: information: call (810) 329-4198. The idea is simple - provide • Plan name SDD/SDM LIQUOR LICENSES NOW Summary Plan Descriptions (SPDs) AVAILABLE—One in City of Livonia, One in City of • Employer name and address to all plan participants in a format that Riverview. Must Sell! Call (248) 548-2900, x3033. Participants could file • Employer identification number is easy to read and understand so FOR SALE: LIQUOR STORE-Good location in lawsuits claiming that the • Plan number (not contract employees don’t have to rely on Detroit on main thoroughfare. Also has deli and number) - This is usually a number groceries. Beer. wine, lottery. Size: 4,000 sq. ft. failure to maintain an SPD complicated and confusing business and property. For more information, call assigned by the plan sponsor. These documents. Retirement plans, welfare (313) 561-5390 evenings. Leave name, telephone with all the required numbers are usually sequential benefit plans (insurance plans), and number on answering machine information led to the starting with number 501 cafeteria plans all require an SPD. KITCHEN HOOD FIRE SYSTEMS AND • Type of plan - This would There are only a few exceptions, EXTINGUISHERS—Low discount pricing to all AFD improper handling or denial members. New installs, remodels, inspections, include the type of benefits offered which include: recharging and testing. Also servicing auto paint of a claim. under the plan • Government plans b ooths and gas stations. All brands: Ansul, • Type of administration - An • Some church plans Pyrochem. Range Guard. Servicing Southeastern example would be insurer Michigan 24/7. Call Alan Ross at GALLAGHER regulations. • Plans maintained to comply with FIRE EQUIPMENT—800-452-1540. Many welfare benefits plan insurers administration, sponsor w orker’s compensation laws, FOR SALE—Party Store in Warren. Excellent and health benefits organizations administration, or contract unemployment compensation laws, or location! Good business with GREAT income. Call administration disability insurance laws Sam or Mike at (586) 751 -6440. (medical, dental, disability, life and • Administrator name, address, and • Plans maintained outside of the ESTABLISHED PARTY STORE—Port Huron, Ml other coverages) provide a booklet or High traffic area. SDD, SDM and Lotto. Owner certificate to participants, which, while phone number United States primarily for the benefit retiring. Leave message: (810) 985-5702 • Agent for legal process containing many of the required items, of non-resident aliens FOR SALE—Liquor, deli, pizza. Brighton area. • Plan trustees name, title, and do not include all provisions necessary • An excess benefit plan High volume corner! Business & property available principal place of business Lack of an adequate SPD is Contact George at (313) 460-9194 under the new SPD regulations. • Statement of collective As the plan sponsor, the employer is probably the most common WELL ESTABLISHED PARTY STO RE-160 miles bargaining agreements if relevant noncompliance issue. Most north of Detroit in area of seven inland lakes. Ten obligated to maintain an SPD • Other disclosures such as miles from Lake Huron. Beer, wine, grocery, pizza, containing all of the required companies provide SPD’s for their ice cream. 85% remodeled. Includes two-family COBRA. HIPAA, FMLA, and provisions. If an SPD is not retirement plans because most Third home next door $299,000. Ask for Martha: 989- ERISA language are usually included Party Administrators (TPA’s) supply 469-9341 maintained or if the SPD is deficient, in the insurance certificate booklets them with one. Many times plan SPECIALTY WINE SHOP FOR SALE— SW you could be subject to civil penalties but not always. Michigan location, SDD, SDM and Lotto. $1.6mm in a DOL audit. sponsors of insured welfare plans revenues, $100M+ cash flow. Owners retiring. Great The plan administrator is required Further, participants could file (medical, dental, life, and disability) opportunity with strong potential for growth to distribute an SPD within 90 days lawsuits claiming that the failure to think that the certificate of insurance $275,000+ inventory The Stratford Company of the employee becoming a (Broker): 616-385-4101 maintain an SPD with all the required will suffice as their SPD but more participant. SPDs must be mailed to a BUYER/MERCHANDISER—Spartan Stores. Inc is information led to the improper than likely it will not. The certificate participant’s last known address if seeking a Buyer/Merchandiser, reporting directly to handling or denial of a claim. of insurance is a state requirement and the Meat & Seafood Director of Purchasing This requested in writing. They’re also Summary Plan Descriptions does not include all the information position is responsible for purchasing and market­ required to have an SPD available to ing specific items for the purpose of growing sales summarize the provisions of benefit required to be an SPD, which is a be reviewed by the employee at their within the Detroit marketing areas. Ideal candidates plans. They include basic formulas for federal requirement. must have a strong procurement/sales background business location. determining how the plan will However, required information can m meat and seafood as it relates to specific ethnic New SPDs must be given at a markets. Excellent negotiation, communication, or­ reimburse claims, outline what is often be added to this certificate and minimum of once every ten years or ganizational, problem solving and analytical skills covered and excluded, provide rules listed on a single page. Understanding of the wholesale, retail distribution in­ if the plan has been amended during for eligibility and include procedures Just a little effort in this area can dustry Strong product and industry terminology that time once every five years. for making a claim for plan benefits. bring most plans up to compliance knowledge is necessary For consideration send Additionally, a Summary of Material your resume to Spartan Stores, Inc., Human Re­ This document, together with a and prevent potential problems. The Modification must be given when sources Department. 9075 Haggerty Road, Ply­ certificate, can complete the disclosure easiest way to distribute an SPD is in mouth. Ml 48170. Fax 734-451-5991 Email significant changes are made to the requirements for the SPD. The person or by first-class mail. nek muzingo@spartanstores com plan. additional information typically AFD Food & Beverage Report. December. 2002...... 29 SUPPORT THESE AFD SUPPLIER MEMBERS

AUTHORIZED LIQUOR AGENTS: Karen's Kafe at North V alley...... (248) 855-8777 Mexico Wholesale...... (313) 554-0310 STORE SUPPLIES/EQUIPMENT: General Wine & Liquor...... (248) 852-3918 Penna's of Sterling...... (586) 978-3880 Nikhlas Distributors (Cabana)...... (248) 582-8830 Belmont Paper & Bag Supply...... (313) 491-6550 National Wine & Spirits...... (888) 697-6424 Southfield Manor...... (248) 352-9020 Rocky Peanut...... (313) 871-5100 Brehm Broaster Sales...... (989) 427-5858 (888) 642-4697 St. Mary's Cultural C enter...... (313) 421-9220 Variety Foods, Inc...... (586) 268-4900 Bunzl U S A ...... (810)714-1400 Encore Group/ Trans-Con, Co...... (888) 440-0200 Tina's C atering ...... (586) 949-2280 Culinary Products...... (989) 754-2457 PROMOTION/ADVERTISING: DCI Food Equipment...... (313) 369-1666 BAKERIES: DAIRY PRODUCTS: Enterprise Marketing...... (616) 531-2221 Envipco...... (248)471-4770 Ackroyd's Scotch Bakery Huron Web Offset Printing...... (519) 845-3961 Country Fresh D airies...... (800) 748-0480 Ernie's Refrigeration...... (989) 847-3961 & Sausage...... (313) 532-1181 Golden Valley D airy...... (248) 399-3120 J.R. Marketing & Promotions...... (586) 296-2246 Four Seasons Beverage & Equip...... (734) 254-0886 Archway C ookies...... (616) 962-6205 Melody Farms Dairy Company...... (734) 525-4000 PJM Graphics...... (313) 535-6400 Hobart Corporation...... (734) 697-3070 Awrey Bakeries, Inc...... (313) 522-1100 Mexico Wholesale...... (313) 554-0310 Stanley's Advertising & Dist...... (313) 961-7177 Martin Snyder Product Sales...... (313) 272-4900 Dolly Madison Bakery...... (517) 796-0843 Pointe Dairy...... (248) 589-7700 Stephen's Nu-Ad, Inc...... (586) 777-6823 MSI/Bocar...... (248) 399-2050 Earthgrains...... (734) 946-4865 Superior Dairy Inc...... (248) 656-1523 National Food Equipment Interstate Brands Corp...... (313) 591-4132 Tom Davis & Sons D airy...... (248) 399-6300 & Supplies...... (248)960-7292 Oaknin Farm Bakery...... (800) 263-6422 RESTAURANTS: North American Interstate ...... (2481 543-1666 S & M Biscuit Dist. ELECTRONIC AGE VERIFICATION Copper Canyon Brewery...... (248) 223-1700 Serv-Tech Cash Registers ...... (800)866-3368 (Stella D'Oro)...... (586) 757-4457 D J. King & Associates...... (800) 781-5316 The Golden M ushroom ...... (248) 559-4230 Taylor Freezer...... (313)525-2535 Taystee Bakeries...... (248) 476-0201 Palace G ardens...... (810) 743-6420 EGGS & POULTRY: Pizza Papalis Corp...... (248) 932-4026 TOMRA Michigan...... 1-800 6104866 United Marketing Assoc...... (734j 261-5380 BANKS: Linwood Egg Company...... (248) 524-9550 ATM of M ichigan...... (248)427-9830 SERVICES: Wadie Makhay Produce Comerica Bank...... (313) 222-4908 FRESH PRODUCE: 1st Choice Insurance Agency...... (586) 737-2339 Specialist...... (248) 706-9572 Financial Corp...... (313) 387-9300 AAA Michigan...... (800) AAA-MICH Aunt Mid Produce Co...... (313) 843-0840 WHOLESALERS/FOOD DISTRIBUTORS: North American Bankard...... (248) 269-6000 A&R Delivery...... (810) 638-5395 Sunnyside Produce...... (313) 259-8947 Brownwood Acres...... (231) 599-3101 North American Interstate...... (248) 543-1666 Abbott, Nicholson, Calverlee Supply...... (586)979-1370 Peoples State Bank...... (248) 548-2900 ICE PRODUCTS: Esshaki & Youngblood...... (313) 566-2500 Capital Distributors...... (800)447-8180 Standard Federal B ank...... 1 -800-225-5662 International Ice, Inc...... (313) 841-7711 ABN AMRO Merchant Services...... (517) 323-6027 Central Foods...... (3131933-2600 United ATM's, Inc...... (248) 358-2547 Party Time Ice Co...... (800) 327-2920 Action Inventory Services...... (586) 573-2550 Chase Farms Frozen Quincy Ice Co...... (248) 968-4290 Air One Telecom...... (734) 741-0396 BEVERAGES: Food Process...... (231) 873-3337 U.S. Ice Corp...... (313)862-3344 AirPage Prepay & Talk C ellular...... (248) 547-7777 Consumer Egg Packing Co...... (313) 871-5095 Absopure Water Co...... 1-800-334-1064 A1 Bourdeau Insurance CS & T Wholesalers...... (248) 582-0865 Allied Domecq Spirits U SA ...... (248) 948-8913 INSURANCE: Services, Inc...... (800) 455-0323 Dearborn Sausage...... (313) 842-2375 American Bottling...... (313)937-3500 1st Choice Insurance Agency...... (586) 737-2339 American M ailers...... (313) 842-4000 Decanter Imports...... (248) 4464500 Anheuser-Busch Co...... (800)414-2283 AAA Michigan...... (800) AAA-MICH Andrews Brothers Inc. Deli Style Jerky...... (734) 453-6328 Bacardi Imports, Inc...... (248) 476-6400 AI Bourdeau Insurance Detroit Produce Terminal...... (313) 841-7400 Dolly's Pizza...... (248) 360-6440 Bellino Quality Beverages, Inc...... (734)947-0920 Services, Inc...... (248) 855-6690 AON Risk Services...... (248) 359-6080 EBY-Brown. Co...... 1-800-532-9276 Brown-Forman Beverage Co...... (734) 433-9989 Capital Insurance Group...... (248) 354-6110 Bellanca, Beattie, DeLisle...... (313) 882-1100 Economy Wholesale Cash & Carry...... (313) 922-0001 Brownwood Acres...... (231) 599-3101 Gadaleto, Ramsby & Assoc...... (800) 263-3784 Binno & Binno Investment Co...... (248) 540-7350 Elegance Distributors...... (517)663-8152 Canandaigua Wine Co...... (586) 468-8650 JS Advisor Enterprises...... (810) 242-1331 BMC Grocery Systems Specialists...... (517) 485-1732 Energy Brands...... (231) 223-9451 Central Distributors...... (734) 946-6250 Frank McBride Jr., Inc...... (586) 445-2300 Business Machines Co. (BM C)...... (517) 485-1732 Epstein Distributing Co...... (248) 646-3508 Coca-Cola Bottlers of MI Meadowbrook Insurance...... (248) 358-1100 C. Roy & Sons...... (810) 387-3975 Fairway Packing Co...... (313) 832-2710 ...... Auburn Hills (248) 373-2653 North Pointe Insurance...... (248) 358-1171 Canteen Services...... (616) 785-2180 Fleming Company...... (330) 879-5681 ...... Detroit (313) 825-2700 Paulmark Agency...... (248) 471-7130 Cateraid. Inc...... (517)546-8217 Food Services Resources...... (248) 738-6759 ...... Madison Heights (248) 585-1248 Rocky Husaynu & Associates...... (248) 851-2227 Central Alarm Signal...... (313) 864-8900 General M ills...... (248) 960-5237 ...... Van Buren (734) 397-2700 Check Alert...... (231)775-3473 Grandpa's Jerky...... (313)963-1130 ...... Pori Huron (810) 982-8501 LOGISTICS PLANNING Cherry Marketing Institute...... (517) 669-4264 Coors Brewing Co...... (513) 412-5318 Great North Foods...... (989) 356-2281 SaTech Logistics, Inc...... (248) 203-9500 Clear Rate Communications...... (248) 968-4290 Hamilton Quality Foods...... (313) 728-1900 Delicato Family Vineyards...... (248) 766-3451 Container Recovery System...... (517) 229-2929 Hav-A-Bar...... (810)2344155 E & J Gallo W inery...... (248) 647-0010 MANUFACTURERS: D.J. King & Associates...... (800) 781-5316 Eastown Distributors...... (313) 867-6900 I & K Distributing...... (734) 513-8282 Home StyleFoods, Inc...... (313) 874-3250 Deford Distributing .*...... (989) 872-4018 Faygo Beverages, Inc...... (313) 925-1600 International Ice...... (313)841-7711 Jaeggi Hillsdale Country Cheese...... (517) 368-5990 Detroit Edison Company...... (313) 237-9225 Garden Foods...... (313) 584-2800 International Wholesale...... (248) 544-8555 Kraft General Foods...... (248) 488-2979 Detroit Warehouse...... (313) 491-1500 Jerusalem Foods...... (313) 538-1511 General Wine & Liquor Co...... (313) 867-0521 Nabisco, Inc...... (248) 478-1350 Digital Security Technologies...... (248) 770-5184 Kaps Wholesale Foods...... (313) 567-6710 Great Lakes Beverage...... (313) 865-3900 Old Orchard Brands...... (616) 887-1745 The Employment G uide...... (800) 752-8926 x230 Hubert Distributors, Inc...... (248) 858-2340 Karr Foodservice Distributors...... (313 ) 272-6400 Philip Morris USA...... (616) 554-0220 Eskye.Com, Inc...... (317) 632-3870 Kay Distributing...... (616) 527-0120 Intrastate Distributing...... (313) 892-3000 Red Pelican Food Products...... (313) 921-2500 Financial & Marketing Ent...... (248) 541-6744 Kingston Distributing...... (989) 872-3888 J. Lewis Cooper Co...... (313) 278-5400 Singer Extract Laboratory...... (313) 345-5880 Follmer, Rudzewicz & Co., C PA ...... (248) 355-1040 Java Jo e's...... (734) 439-3280 Kramer Food Co...... (248)851-9045 Strauss Brothers Co...... (313) 832-1600 Gadaleto, Ramsby & Assoc...... (800) 263-3784 L&L Jiroch/J.F. Walker...... (517) 787-9880 Jim Beam Brands...... (248) 471-2280 Goh's Inventory Service...... (248) 353-5033 L B Enterprises...... (5171 546-2867 Josulete Wines. Inc...... (313) 538-5609 MEAT PRODUCERS/PACKERS: Great Lakes Data system s...... (248) 356-4100 Liberty Wholesale...... (586) 755-3629 Kings Orchards...... (877) 937-5464 Bar S Foods...... (248) 414-3857 J & B Financial Products L L C ...... (734) 420-5077 Lipan Foods...... 1-(586) 447-3500 Leelanau Wine Cellars...... (231) 386-5201 Family Packing Distributors...... (248) 738-5631 Kansmacker...... (248) 249-6666 Mexico Wholesale ...... (3 1 3 ) 554-0310 McCormick Distilling Co...... (586) 254-5650 or (313) 873-3999 Karoub Associates...... (517) 482-5000 Michigan Quality S ales...... (313) 255-7333 Michigan Grape & Wine Gainor's Meat Packing...... (989) 269-8161 Law Offices-Garmo & G arm o...... (248) 552-0500 Mr Dee's Gourmet Foods...... (734) 747-8475 Indastry Council...... (517) 373-1104 Hartig M eats...... (313) 832-2080 Market P ros...... (248) 349-6438 Mr Pita...... (5861323-3624 Miller Brewing Company...... (414) 259-9444 Hygrade Food Products...... (248) 355-1100 Marketplace Solutions...... (989) 235-5775 Nash Finch...... (989) 777-1891 National Wine & Sprits...... (888) 697-6424 Kowalski Sausage Company...... (313) 873-8200 Metro Media Associates...... (248) 625-0700 National Bulk Foods...... (313) 292-1550 (888) 642-4697 Nagel Meat Processing Co...... (517) 568-5035 Nordic Electric. L.L.C...... (734)973-7700 Nikhlas Distributors (Cabana)...... (248) 582-8830 Oak Distributing Company...... (810) 239-8696 Pelkie Meat Processing...... (906) 353-7479 North American Interstate...... (248) 543-1666 Norquick Distributing Co...... (734 ) 254-1000 Pepsi-Cola Bottling Group Potok Packing Co...... (313) 893-4228 Paul Meyer Real Estate...... (248) 398-7285 Preferred Brands...... (313) 381-8700 -D etro it...... 1-800-368-9945 Strauss Brothers Co...... (313) 832-1600 Payment Authority, T h e...... (248) 879-2222 Robert D. Arnold & Assoc...... (810) 635-8411 -H o w ell...... 1-800-878-8239 Wolverine Packing Company...... (313) 568-1900 POS Systems Management...... (248) 689-4608 Roundy's...... (419) 228-3141 - Pontiac...... (248) 334-3512 Preferred Merchant S. Abraham & Sons...... (616) 453-6358 Pernod Ricard USA...... (630) 922-6484 MEDIA: Credit Resources...... (616) 794-3271 Sherwood Foods Distributors...... (313) 366-3100 Petitpren, Inc...... (586) 468-1402 The Beverage Journal...... (800) 292-2826 Quality Inventory Services...... (586) 771-9526 Spartan Stores, Inc...... (734) 455-1400 Red Bull North America...... (248) 229-3460 Booth Newspapers...... (734) 994-6983 REA Marketing...... (989) 386-9666 Suburban News: W arren...... (586) 7564000 Seven-Up of Detroit...... (313)937-3500 Detroit Free Press...... (313) 222-6400 Sagemark Consulting, Inc...... (248) 948-5124 Flint...... (810) 785 4200 Stony Creek Brewing Co...... (313) 299-5411 Detroit News...... (313) 222-2000 Shimoun, Yaldo & Associates, P.C...... (248) 851-7900 SuperValu Central Region...... (937) 374-7874 Tri-County Beverage...... (313) 584-7100 Detroit Newspaper Agency...... (313) 222-2325 Salim Abraham, Broker...... (248) 349-1474 Tiseo's Frozen Pizza Dough...... (586) 566-5710 UDV-North America...... 1-800-462-6504 The Employment G uide...... (800) 752-8926, x230 Secure Checks...... (586) 758-7221 Tom Maceri & Son, Inc...... (313) 568-0557 Michigan Chronicle...... (313) 963-5522 Security Express...... (248) 304-1900 BROKERS/REPRESENTATIVES: Tony's Pizza Service...... (616) 795-0220 Suburban News—W anen:...... (586) 756-4000 Serv-Tech Cash Registers...... (800) 866-3368 Acosta-PMI...... (734)737-1250 U.S. Ice Corp...... (313) 862-3344 —Flint:...... (810) 785-4200 Smokeless Tobacco Council, Inc...... (202) 452-1252 Bob Arnold & Associates...... (248) 646-0578 Value Wholesale...... (248) 967-2900 Trader Publishing...... (248) 474-1800 Southfield Funeral Hom e...... (248) 569-8080 CrossMark...... (734) 207-7900 Weeks Food Corp...... (586) 727-3535 WDFN-AM 1130 ...... (313)259-4323 T & L Acquisition...... (313) 381-2266 Hanson & Associates, Inc...... (248) 354-5339 Wine Institute...... (313) 882-7630 WDIV-TV4 ...... (313) 222-0643 T.D. Rowe Corp...... (248) 280-4400 J.B. Novak & Associates...... (586) 752-6453 TeleCheck Michigan, Inc...... (248) 354-5000 James K. Tamakian Company...... (248) 424-8500 ASSOCIATES: Travelers ExpressMoney Gram...... (248) 584-0644 S & D Marketing...... (248) 661-8109 NON-FOOD DISTRIBUTORS: American Synergistics...... (313) 427 4444 Variatee W ireless...... (248)658-5000 Canadian Consulate General...... (313) 567 2208 CANDY & TOBACCO: Items G alore...... (586) 774-4800 Verizon Wireless...... (248) 763-1563 Livemois-Davison Florist...... (248) 352-0081 Philip Moms USA...... (734) 591-5500 or (517) 896-7000 POTATO CHIPS/NUTS/SNACKS: Minnich's Boats & M otors...... (810) 748-3400 R.J. Reynolds...... (248)475-5600 Western Union Financial Services...... (513) 248-4900 Better Made Potato Chips...... (313) 925-4774 Wileden & Associates...... (248) 588-1358 Westside Cold Storage...... (313) % I-4783 Frito-Lay, Inc...... 1-800-359-5914 Wolverine Golf Club, Inc...... (586) 781 5544 Whitey's Concessions...... (313) 278-5207 CATERING/HALLS: Germack Pistachio Co...... (313) 393-2000 Emerald Food Service...... (248) 546-2700 Jay s Foods...... (800) 752-5309 Farmington Hills Manor...... (248) 888-8000 Kar Nut Products Company...... (248) 541-7870 30.... AFD Food & Beverage Report, December 2002 For more information on our fine dairy products please call 1-800-748-0480, ext. 1659.

Country Fresh, LLC • 4460 44th St. SE • Grand Rapids, Ml 49512 Pharmacists recommend the Pharm brand for its quality.

Qssm Animal Shapes oressant

Day/Time

count

we recommend it for all Its benefits! ■ Increased Profits ■ Comprehensive Variety ■ Outstanding Consumer ■ Everyday Low Cost Savings

“ As a pharmacist, I recommend the Pharm brand because it provides a quality alternative to comparable national brand items that are priced much higher. Pharm products are excellent. They must meet high quality Dinorah Espinoza-Dykstra standards before they even make their way to your shelves. Plus, they Pharmacist carry a 100% satisfaction quarantee to ensure consumer confidence."

Exclusive Distributor of Pharm Brand Products

For Information, call 616.878.4534 or visit our website at www.spartanstores.com 11087MKT11 02 1 5

SHERWOOD FOOD DISTRIBUTORS 18615 Sherwood Detroit, Michigan 48234 AFD's 18th Annual Buying Trade Show Tuesday, April 23, 2002 5 p.m. 9 p.m. Wednesday, April 24, 2002 2 p.m. 8 p.m.

Look inside for more details about winning a million dollars!

Associated Food Dealers of Michigan 18470 West Ten Mile Road Southfield, Michigan 48075 IT'S REALLY EASY . . . Guaranteed! • All Sherwood Food Customers Some lucky customer from receive free admission into the AFD Trade Show. Preregister by mailing Sherwood Food Distributors in this form, and you will receive a will have the chance to badge in the mail. No waiting in long lines! WIN $1 MILLION!! • If you do not mail in the form, please bring it with you to the show, DON'T MISS OUT! or you will be charged $5 at the Attend AFD's 18th Annual Trade door. Show. Buy some products in the SFD The law demands that you section of 36 booths, and you will get must be at least 21 years a chance to play for $1 million. of age to attend this Did we mention that we are Trade Show. offering outstanding deals? YOU CANT LOSE! We will have some amazing deals on the following products: • BEEF ■ CHEESE ■ DELI ■ PORK • POULTRY • SEAFOOD • TURKEY Of course, we will be introducing some new products, too!

TRADE SHOW HOURS: OVERNIGHT Tuesday, April 23, 2002 • 5 p.m. • 9 p.m. ACCOMMODATIONS: Holiday Inn—$109 Wednesday, April 24, 2002 • 2 p.m. - 8 p.m. (734) 464-1300 Burton Manor, Livonia, Michigan Comfort Inn—$72 Call your Sherwood Food Representative at (313) 366-3100 (734) 458-7111 or call Ginny at AFD at (248) 557-9600.

Swing Into Spring Two days with at Burton Manor, Livonia, Ml 10 full hours of uninterrupted April 23 & 24,2002 SELLING!

A SELLING Trade Show attracting buyers from convenience stores, supermarkets, specialty stores, drug stores and gas stations The AFD Trade Show: Heart of the Fairway A Chance to Win a Million Dollars Guarantees Attendance Exhibitors that offer Show Specials will be included in a sweep­ stakes game. Attendees visit participating booths to get game cards stamped. A completely stamped card gives the buyer a chance to win a million dollars by getting a hole-in-one. Partnering with AFD is like a “Seeing-Eye Putt' ■ Ten no-conflict exhibit hours Instant access to: A forced floor plan —convenience stores Free promotional materials —supermarkets • Dedicated exhibitor support —specialty stores —direct mail promotions —drug stores —complimentary customer tickets —gas stations —ad discounts

"The AFD show is valuable to

us because of the deals, ” said Joyce Polsky from Fox Hills Medi Mart.

"I go to the show to learn about the latest trends in the industry, and see if any unique ideas are appropriate for our store,” ‘‘I’m looking for new products; said Ron Larkin from I want to see something different," J&J Foodcenter. said Richard Schiff from Richard's Drug

"I came to the show with a specific agendi to purchase products that could be used ft

a Spring / Sum m er p ro m o tio n," said Bill Schmid from Manhattan Marketplace.

“My customers are looking for fast and easy meals on-the-go, so I want to see branded food concepts, said Jay Beydoun from Jay's Redford Amoco.

The Associated Food Dealers of Michigan (AFD) is one of the largest trade associations in the country. We’ve been serving the food and beverage industry for over 86 years, and we have been hosting a successful selling trade show for 18 years. Call or E-mail Ginny at AFD for more information at (248) 557-9600 or [email protected]. Ask for a LIST O F EXHIBITORS when you call. Discover How You Can

Exhibit Hours: Tuesday, April 23, 2002 5 p.m. - 9 p.m. Wednesday, April 24, 2002 2 p.m. - 8 p.m.

Exhibit Fees: 1 booth $950 1+booths $1200 2 booths $1800 2.5 booths $2150 3 booths $2700 4 booths $3400 4+ booths $3400 + $750 for each additional booth Receive a 50% discount on all ads in the Food & Beverage Report. Purchase a half- or full-page ad and receive free spot color, too. AFD Non-Members: add $400 to the above prices. Standard Booth: • 8 feet deep by 10 feet across • floor is carpeted • back drop is curtained • two chairs provided • company name sign • unlimited ice available • 50 complimentary customer tickets • one 8-foot skirted table ($25 per additional table)

Location: Burton Manor, Livonia. Michigan

Electrical: All electrical requirements must be made through Burton Manor. All electrical costs will be borne by exhibitors.

Corkage: All beer, wine and liquor that will be sampled must be purchased through Burton Manor. The corkage is 15% on the wholesale cost. Exhibitors may bring in their own alcohol if it will be used only for display purposes. Please make arrangements at least two weeks prior to the show with Sales Manager Susan Giffin at (734) 427-9110, ext. 25.

Drayage: Assistance with move-in is optional; there is no charge. Exhibitors utilizing storage space at Burton Manor prior to the show must make arrangements through Burton Manor; there is a charge for this service.

Installation: Tuesday, April 23, 2002 8 a.m. - 4 p.m.

Dismantle: Thursday, April 25, 2002 8 a.m. 12 p.m. Everything must be out by 12 p.m. (noon)— no exceptions.

Secure Your Return-on-lnvestment Right Now: 1) Review the enclosed floor plan and choose a booth 2) Fill out the enclosed contract and mail it to AFD. Sell to thousands of buyers in just two days!

Associated Food Dealers of Michigan 18470 West Ten Mile Road Southfield, Michigan 48075

Contact: Ginny Bennett - [email protected] Phone 248-557-9600 • Fax 248-557-9610 www.afdom.org