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New Bakery & Production Facility Helps Accelerates Crest Hill’s Growth Mustafa Koita Is A Man On A Mission stallations,- A Milk Koita made Mission the decision to expand to Until he was almost 40, nothing in Mustafa Koi- the U.S. on a much broader level. Crest Hill Bakery, the fast-growing artisan maker based in ta’s career path would indicate a love and passion “Truthfully, it was a painful experience,” he not- for the milk business. He was born in Princeton, ed about the bureaucratic procedure of getting the Glenn Dale, MD, has craft ed a formula for success: produce high NJ and raised in the Chicago area. Aft er graduating necessary approvals to gain U.S. entry. “It took quality European hearth baked breads and sell them to retail and from Northern Illinois University, he began a career about a year for the entire process to be completed, wholesale customers as private label items. with U.S. Robotics and worked at several other jobs but we are now ready to test the waters.” in the IT and tech fi elds. “It allows our customers to have fl exibility on how they market Actually, it was only six weeks ago that Koita our products,” said Dave Neville, founder and CEO of Crest Hill, In 2010, he was recruited by Boeing to super- Foods’ fi rst container of their milk products arrived whose bakery journey began 40 years ago when he joined Vie de vise the defense contractor’s Middle East cyber di- in New Jersey. Prior to that, much of the time was France as a teenager. “More so than ever, with retailers demand- vision based in Dubai. Th ree years later, feeling a devoted to developing an infrastructure that could ing higher quality items in their private label portfolio, we can of- bit burned out and anxious to begin a career as an manage its U.S. business. Th at included two U.S.- fer them a broad line of top shelf products where they can control entrepreneur, Koita left the world of high-tech and based executives in sales and marketing and the the label and how they want to market our line.” formed Koita Foods, processors of organic milk selection of a food broker familiar with Koita’s type products - both plant-based milk and milk from of products. Aft er his stint with Vie de France, Neville joined the old Amer- cows. ican Café organization in Washington where he worked with ex- Aft er many interviews, Koita Foods selected perienced bakers, helping him further learn his craft . He joined But to hear Koita’s story, shift from tech to agri- Wayne, NJ-based Gourmet Specialties, Inc. to rep- culture isn’t so far-fetched at all. Sutton Place Gourmet (now Balducci’s) to head that retailer’s ar- resent the company in the Northeast, Koita Foods’ tisan bread program in 1990. Five years later, he ventured on his fi rst targeted marketing area. “I’ve always been passionate about health. While own and opened Upper Crust Bakery in Silver Spring, MD. living in Dubai for three years, I noticed my three One critical decision the company made before A second store debuted three years later in Olney, children didn’t have many healthy eating alter- entering the U.S. was to sell only plant-based milk natives. Even when living overseas (he also lived MD, and Neville’s business was moving for- Mustafa Koita products. Th ose would include organic almond ward. in London), our family would visit the U.S. for a milk, organic coconut milk, oat milk, rice milk, soy month, and we liked to shop at Whole Foods. I no- However by 2000 the “low carb” move- EARLIER THIS YEAR, CREST HILL BAKERY RELOCATED TO A STATE- beverage and soy for coff ee beverage. A seventh of-the art bakery and production facility in Glenn Dale, MD. Founder ticed that dairy products from Horizon and Organ- Th e company contracted with two Italian pro- item, organic almond/coconut blend, will be intro- ment had exploded, forcing Neville to ic Valley commanded a lot of space in the stores, cessors - Newlat and Sterilgarda - to co-pack Koita and CEO Dave Neville (c) is fl anked by some of the company’s key duced later this year. Koita will provide one of the make some hard business decisions. He associates, including (l-r) David Silbertstein, Joanna Yu, Nancy Lopez so I thought pursuing an opportunity to introduce Foods’ line, which was fi rst introduced in Dubai in fi rst Italian plant-based milk ranges in the US. All organic milk into Dubai would be a sound idea,” 2015. “We had no marketing budget, so we started sold the Olney store to Vie de France and Colleen Ball. products are UHT (Ultra High Temperature) and and converted his Silver Spring unit to a Koita explained. slowly with two products,” Koita recalled. “It was sold in shelf-stable aseptic packaging made of recy- literally all word of mouth and social media. We or- wholesale-only bakery. Th at was a pivot- who takes no shortcuts to produce varieties like ciabatta, torta- In 2014, using his cled paper with a 12-month shelf life. al move that would set the stage for future life savings, Koita em- ganized hundreds of focus groups with local moms no, pain de campagna and harvest multi-grain bread (Crest Hill’s barked on a year-long and we were off and running.” “Th e decision not to sell fresh cow milk in the events. top selling item). Th e bakery produces about 60 varieties of bread U.S. was rather an easy one,” Koita declared. “We (with approximately 15 core items) and all breads are par-baked journey visiting dozens By 2016, Koita began to grow rapidly in Dubai, By 2006, he had outgrown the Silver Spring fa- had no desire to compete directly with U.S. dairy on stone in the company’s French ovens using high quality ingre- of countries in search achieving distribution through most food outlets. “Put us in front of a cility and moved to a 13,000 square foot bakery in of the best milk, the farmers. Th ey control the fresh milk market and nearby Beltsville, MD. Th e company was also re- dients. Th e company then expanded successfully to near- frankly there was no opportunity for us.” best cows and the best by countries such as Saudi Arabia and Kuwait. Th e named Crest Hill. Aft er steady growth and another farms. “We scrutinized decision maker with Beyond the love of baking, Dave Neville takes a pragmatic view growth story was so notable that Harvard Business Koita Foods’ U.S. expansion plan will also fo- expansion, Neville realized he simply needed more of the business side of his company. “Don’t be cheap. We’ve built every aspect of the pro- School decided to write a case study about Koita’s cess without compro- cus on building a distributor network (productssome fresh product space, and six months ago opened a state-of-the art a reputation that’s based on the quality of our products. You can’t “We’ve got a lot more to accom- journey (which they now teach to the Executive have been approved at Mansfi eld, MA-based Chex bakery production and distribution center in Glenn mise - from treatment MBA class in Boston). reach that level and maintain your reputation if you take short- plish and the phase of our journey of the cows to the en- Foods) and selling to upscale regional and indepen-to taste – that’s the Dale, MD. cuts.” won’t be easy. But I’m really con- vironmental impacts dent retailers whose customer base would seeming- Mustafa Koita then began thinking about the ly be attracted to Koita Foods high quality, healthy Th e new plant encompasses 144,000 square feet Crest Hill, whose sales have been increasing about 10-15 per- dent that the quality of our prod- of farm operations,” he possibility of expanding into the U.S. In 2017, while best selling tool we of space and not only replaces the Beltsville bakery, noted. When the pro- product line. cent annual for the past fi ve years, now has an opportunity to ucts is superior and distinctive. at a trade show in Dubai, Koita met a U.S. military but also a separate 66,000 square foot distribution cess was completed, broker who did business in the Middle East. He grow even more quickly. “We’ve also got a great team For Koita, his entrepreneurial mission has come have to offer.” center in Jessup, MD. he decided that Ital- wondered if Koita would be willing to sell his prod- full circle - he’s back in the country where he was Th e new equipment will help with productivity (the company (about 25 people) that’s based all ian organic grass-fed ucts to the U.S. military in the Middle East if such born and said that he plans to move back in a few “We’re still adding new equipment, but we’ve been currently utilizes two shift s) and also provides Crest Hill with an cows produced the best over the world who are equally an opportunity arose. Th at began a relationship that years. He’s eager about the opportunity to sell Koita Dave Neville baking here since May and the effi ciencies we’ve al- opportunity to create new products. excited about our business. Even milk. continues today with Koita Foods serving several Foods milk in the U.S. and grateful that his brain- ready realized are tremendous,” said Neville. “And government bases in the region. CEO It currently serves more than 2,000 supermarkets (including my kids don’t think I’m that crazy “I was very im- storm of seven years ago has paid off thus far. we have additional space if we need to expand fur- Crest Hill Bakery Ahold Delhaize USA’s brands as well as Giant Eagle, Harris Teeter anymore.” pressed by the ways Meanwhile, the company had further grown geo- “We’ve got a lot more to accomplish and the next ther. We’re also very proud that we have met all SQF organic farmers in It- standards because food safety is very important to and Whole Foods) in an area that encompasses the Eastern sea- Mustafa Koita graphically and was serving such countries as the phase of our journey won’t be easy,” he said. “But board, parts of the Midwest and Texas. aly treated their cows, Philippines, Singapore, Mauritius and Vietnam I’m really confi dent that the quality of our products all of us at Crest Hill.” Founder & CEO, Koita Foods the attention they gave (Koita milk is now available in 10 countries). Its is superior and distinctive. “We’ve also got a great While some functions have been automated, what When asked what he considers Crest Hill’s most eff ective sell- to the particular grains product line was also increasing with the addition team (about 25 people) based all over the world ing technique, Dave Neville quickly responded. of several new items including lactose-free and a really separates Crest Hill from other wholesale bak- they grew and the perfection of the soil quality they who are equally excited about our business. Even ers that produce artisan-style bread is the passion that Neville and insisted on. Plus, the way they managed their over- full range of plant-based milk off erings. Buoyed by my kids don’t think I’m that crazy anymore.” “Put us in front of a decision maker with some fresh product to all operations was impressive. Th e cows fed grass its regional success and the exposure to American his team (about 140 associates) off er. taste – that’s the best selling tool we have to off er.” from the very rich soil created by Mount Vesuvius soldiers and civilian personnel at their military in- From developing new varieties of breads to customizing orders was a critical factor, too,” Koita stated. for his customers, Neville is a throwback: an old-world craft sman Specialty Produce Distributor Develops Niche, Continues To Grow www.foodtradenews.com100 Years Later, Core Values Remain Vital to John Vena Inc.’s Success 18 | FOOD WORLD September 2020 In 1898, John Vena immigrated to the However, unlike most of the previous dealsUnited States from Gangi, a small farming produce industry was changing and the status 18 | FOOD WORLD quo would not be enough to help the small in specialty,” JV III noted. that Utz consummated, the Golden Enter-community in November Sicily, with 2019 his parents and “We worked very hard to Utz To Surpass $1 Billion In Sales With Conagra DSDprises deal was Acquisition expensive at $141 million. fi rm survive in the long term. Five years later, Last month Utz Quality Foods, the Ha- three sisters. In order to help his family earn build that reputation, and www.foodtradenews.com Th e company, which has been family-ownedmoney, Vena began selling wine grapes on aft er the passing of his father, John Vena II, JV nover, PA-based snack food company, ac- III took the helm. He handled responsibilities we wanted to keep the mo- quired Conagra’s DSD snack business. For since 1921, chose to partner with the familythe Dock Street Market in Philadelphia and mentum going by making offi ce fi rm Metropoulos & Co., the Newby York1919 he had established the foundation of on the fl oor while his aunt and uncle, Anita the CPG giant, the sale of brands such as and Sonny Fiorella, supervised the offi ce. sure we were keeping our Snyder of Berlin, Tim’s Cascade snacks and investment fi rm which has successful backedthe family’s produce business, John Vena Inc. customers ahead of the such food-related fi rms as Hostess Brands,(JVI). “We needed to fi nd a niche in the market Hawaiian Brand snacks comprised less than that would diff erentiate us,” JV III explained. c u r v e .” International Home Foods and Pinnacle one percent of its corporate portfolio. “It was a challenging period for me, but deep Th e strong work ethic Foods, invested nearly $150 million into Utz For Utz, the purchase provided another down I knew that we had something unique and focus on customer to gain a minority stake. service at JVI is still a core key piece of the company’s growth initia- to off er, and I was willing to experiment to get Th at investment play again helped Utz a t h e re .” part of JVI now, as was tive, a plan that includes acquiring regional substantiated by Emily year later when it acquired Inventure Foods, Th e opportunity to exercise that innova- brands but also expanding its route system, Kohlhas, director of mar- manufacturing facilities and reach. Th e deal the Phoenix, AZ-based company which tion would come in the late 1980s when JVI had the chance to work with Agrexco, an Is- keting, who has been with also vaults Utz’s annual sales past the $1 bil- produced such proprietary and licensed the fi rm since 2015. lion mark. brands as BFY brand Boulder Canyon and raeli company looking for a Philadelphia dis- tributor, to expand the market for its cut fl ow- “Produce is a challeng- According to CEO Dylan Lissette, who’s TGI Fridays. Equally as important were the ing and competitive busi- John Vena Inc., now under fourth generation leadership, is guid- Dylan Lissette two manufacturing plants Utz acquired in ers. JV III sensed the potential for a mutually ed by president John Vena (IIl) and Dan Vena, director of sales. been with the family-owned fi rm for 24 years lucrative partnership. ness,” said the University and became chief executive in 2013, Utz will the deal - located in Arizona and Indiana, further expanding its Little did he know that the relationship of Pennsylvania graduate both retail and foodservice channels. It also continue to fi ll gaps in its primary marketing capabilities in the West. When the $165 million purchase was with Agrexco would lead to many other op- who fi rst joined the company as sales and supplies other wholesale distributors with area and continue to acquire companies that will help the snack announced Lissette stated: “We are extremely excited about the portunities to sell Israeli- and Holland-grown marketing coordinator. “What sets John Vena foods’ fi rm to expand its geographic base while adding new brands opportunity to acquire Inventure Foods. Th e company’s specialty items such as tomatoes on the vine, green- Inc. apart isn’t just the willingness to work specialty products. Th e company’s primary and manufacturing capabilities to its portfolio. hard, it’s the focus on being a trustworthy service area ranges from Maine to Virginia snack food products and brands, as well as its geographic Sincefoot- JVI was founded 100 years ago, the house bell peppers and specialty melon that print, customer relationships and distribution strengths are highly were rarely seen in the U.S. market. partner no matter the cost. People here truly (although it services some customers farther Th at strategy has been in place for the past eight years when business has changed radically, but not in all care about making sure their customers – and afi eld). Utz acquired Zappe Enterprises in Louisiana (Zapp’s and “Dirty” complementary to our business.” aspects. Th e core values of the specialty pro- JVI was indeed developing a niche and soon began exploring additional ways to in- their suppliers for that matter – are success- During the past few years, JVI has devel- potato chips) which helped the fi rm further penetrate parts of the From the outset, the relationship with Metropoulos wasduce a curi- distributor, importer and wholesaler – ful. Th at’s a strategy that can seem risky in the oped a new channel – meal kits. It currently South and also gave it some national recognition. Later that year, integrity, dedication, initiative, collaboration, novate, launching a line of ethnic and tropical ous one. Industry observers speculated whether the family offi ce’s items that catered to the growing Asian, In- short-term, but John has always understood serves as a key produce supplier for some of Utz purchased Wachusett Potato Chips which strengthened its al- interest in Utz was made to provide fi nancial security in learningthe midst and humor – remain vital parts of how important it is in the long term.” the industry’s largest meal kit marketers. Ac- ready growing share in New England as well as an the company’s philosophy and business mod- dian and Latino populations in the Philadel- additional manufacturing facility in Fitchburg, MA. of the acquisition, or if it was part of a longer-term plan to ulti- phia region. In 2003, John’s son, Dan, joined the busi- cording to JV III, the meal kit business has mately gain control of the snack food fi rm. el. According to John Vena III (JV III), the ness, marking the fourth generation of the seen fi ts and starts, but as the sector begins to Th e aggressive acquisitions continued a year lat- in 2017, Lissette saidcompany’s that Utz current president, these core val- By the mid-1990s the fl ower business had virtually disappeared, and JVI was develop- family to be part of a business that began stabilize, he sees it as a good growth vehicle er when Utz bought Bachman’s brands and related In an interview with Food World ues are why the family-owned business has “When I was named CEO ing new programs to expand into a wider when Woodrow Wilson was President. Dan for the company. “Because we have been in- assets and then followed in 2014 with its fi rst ven- viewed that Metropolous’ stake primarily served as a fi beennancing able aid to survive and thrive over the past range of services. In the decades to follow, Vena currently serves as director of sales. volved since the beginning, we have a unique in 2013, I thought we could ture in the “better for you” (BFY) snack category for the Golden Enterprises acquisition, although he concededcentury. that Today, JVI and its team of 85 operates out the Manhattan investment fi rm would have had the opportunity the company would invest in other future-fo- set of skills. I don’t know that any other com- be a $1 billion company by when it purchased Good Health, which was based in Th e business evolved through several it- of approximately 30,000 square feet of space pany can match our level of experience as a th to increase its minority stake in Utz in the future upon mutual cused programs such as a year-round fresh anniversary. Greensboro, NC, and developed a line of specialty, erations, focusing on Eastern vegetables and on the new Philadelphia Wholesale Produce produce partner for the sector.” 2021, our 100 acceptance. potted plants in the 1950s and 60s as John’s herb import business and an avocado ripen- gluten-free and non-GMO snack items. In 2015, it ing facility, both of which fi t nicely into the Market (the current PWPM facility opened As JVI moves into the next chapter of its further expanded its portfolio in the BFY space by Th at opportunity never occurred because 14 monthsgrandfather, later, exer- father, aunt and uncle worked in 2011, replacing the Philadelphia Regional storied history, JV III believes that change is We’ll reach that mark a to build a reputation as a reliable wholesale company’s portfolio. acquiring another start-up, Snikiddy. cising an option, Utz elected to buy out Metropoulos. Th at move Produce Market which had been home to JVI inevitable. partner in the terminal market. “Because we had established ourselves as year early and there are still forced Utz to refi nance its in debt, which it did via traditional term since the building opened in 1959). “We know that technology will play an ev- More moves ensued. In early 2015, Utz reached an When JV III joined the family business a knowledgeable and dependable specialty opportunities to expand agreement with Shearer’s, an Ohio-based snack food loan vehicles, once again leading to speculation that the company produce wholesaler and partner, the added Th e company now handles well overer-increasing role in our business, but even aft er college in 1976, he recognized that the 500 varieties of fruits, vegetables and herbs fi rm, to take over fi ve distribution centers and 70 might be forced to slow its growth plans, or go public. services really cemented us as the ‘go-to’ guys the product itself is bound to evolve. New va- through acquisition and (representing 1000s of SKUs) and caters to routes, which helped grow market share in the Buck- Lissette admitted that the capital restructuring was eye-opening rieties, new growing methods, new fl avors are part of what keeps us motivated every day,” he organic strategy. We’ve got eye State and in adjoining Indiana. Later that year, it to many, but he emphasized that the company’s long-term fi nan- said. “We have many challenges to conquer - reached an agreement to acquire the Condor Snack cial outlook or its shorter-term growth initiatives would not be great associates and remain just like our customers. Th eir businesses have Company, which provided Utz with a manufacturing curtailed. Case in point is its consummation of the Conagra DSD hungry to succeed.” become more complex and sophisticated, and plant in Denver and the Keystone pretzel facility in purchase. In fact, according to Lissette, it has only gotten better we have to mirror that – be it in product se- nearby Lititz, PA. with the culmination of the Conagra deal, as well as more than Dylan Lissette lection or operational excellence.” Th en in 2016, Utz acquired a company that had three years of strategic execution of various synergy initiatives at CEO As he views the business going forward, JV been on its radar for over a decade – Golden En- all of the companies involved. III remains candid about the possibilities. Utz Quality Foods, LLC terprises - whose Golden Flake snack products had “Yes, we have new fi nancial obligations that we’ve got to deal “Do we acquire, do we merge, do we launch been a dominant brand in the Southeast since the with,” the 47-year old George Washington University graduate something new?” he pondered. “Change is 1920s. With more than 300 routes and a manufactur- acknowledged, “but strategically and operationally we haven’t occurring quickly in the wholesale world and ing facility in Birmingham, AL, it was a major win. slowed down a bit. Our core Utz business continues to grow year we’d be foolish to take any possibility off the As some of the largest remaining snack food fi rms in the coun- aft er year and we’re reinforcing our organic business growth we Emily Kohlhas (l), director of marketing, and avocado specialist Tyler Domingo table. Running a business successfully re- have in our core markets with these acquisitions which add more assess the status of ripening avocados at JVI’s facilities in the Philadelphia Wholesale quires constant self-evaluation.” try, the two organizations knew each other well, oft en exchanging Produce Market. ideas about the snack food industry and its distinct challenges. routes, add new brands and manufacturing facilities. When I was Th at ability to analyze and adapt has been a named CEO in 2013, I thought we could be a $1 billion company The JVI sales team (l-r) Manny Herrero-Torres, Andrew Powers, Marco Matta, hallmark at John Vena Inc. for 100 years. “My “It’s proven to be great fi t on many levels,” Lissette affi rmed.by 2021, our 100th anniversary. We’ll reach that mark a year ear- Joe Killian, Sal Dolce, Dan Capone, Tom Allen, Dave Carroll, Kelly McCoy, Kelsey Rose, family has always tried to be the most trusted Dan Vena and Katelyn Repash. “Culturally they have very loyal and dedicated associates and ly and there are still opportunities to expand through acquisition partner for growers and for buyers. I’m excit- operated in the same entrepreneurial space as we do. Th ey have and organic strategy. We’ve got great associates and remain hun- ed to work with our current team to fi nd new strong brand recognition and off ered us some unique and fast sell- gry to succeed.” 30 | FOOD TRADE NEWS October 2019 ways to be of www.foodtradenews.comvalue in the next century.” ing items such as pork rinds that we have successfully added to our family of brands.” www.foodtradenews.com
22 | FOOD WORLD December 2019 EDITORIAL OPPORTUNITIES Industry Executive Forums
OUTLOOK 2020
As we do each January, Food World has asked some of the region’s retailers to take a look into their crystal balls for what they expect see on the horizon for the new year. Our panelists are: Ira Kress, president of Giant Food; Ryan Red- ner, president of Redner’s Markets; Jim Perkins, president of Acme Markets and EVP of Albertsons; and Kurt Schertle, COO of Weis Markets. State of the Produce Industry OUR QUESTIONS: 1. Over the past year, how have home delivery and/or store pick-up fared for your company? How do you see your - current program growing/changing in 2020? As we do each fall, Food World asked several produce industry executives to par 2. For the past ve years, some have predicted that the presence of bricks and mortar stores will be greatly diminished ticipate in a panel discussion on the produce industry. This year, we will hear from: in the future. Is competition from physical stores easing up a bit? Are you seeing a shift in the overall landscape to Rob Nickels, director of produce and floral at Giant Food (Landover, MD); Ricardo other channels, including digital? Please explain. DiMarzio, sales manager for produce at Albertsons Mid-Atlantic (Acme Markets and Safeway); Jon Steffy, VP and general manager at Four Seasons Produce; and Al 3. Boomers vs. Millennials and Gen Z: How are you addressing their differences as they shop your stores? Rivero, director of sales and marketing for Lancaster Foods. 4. In April 2020, the USDA plans to enact a rule that will narrow the exibility states have in deciding SNAP require- ments, meaning more than 700,000 people may ultimately lose their eligibility for food assistance. Any thoughts OUR QUESTIONS: about the new rule and how it might impact your business? 1. What have been the biggest challenges the produce industry has faced during the pandemic and what steps or actions has your company taken to address or Ira Kress counter them? walking into the grocery store with a cart Ira Kress President, Giant Food attractive for quick fi ll-in trips and grab- 2. What preparations is your company making in case a second shutdown ensues? that’s already full of your favorite items. seeing that customers increasingly want to and-go meals. Th e experience customers 3. If you could re-imagine the produce department of five years from now, what 1. 2019 was a breakout year for e-com- Plus our system is learning each time you know more about the products they buy have with our brand in-store translates to might it look like? merce at Giant Food. When we began the order with us; the ‘Order Genius’ tool uses (and oft en will research this information on Ricardo DiMarzio winning their business in other channels. Rob Nickels year, Peapod Delivery across our market artifi cial intelligence to recommend prod- their phones while shopping). And so we’re was a centralized operation managed un- ucts based on how you like to shop. Engagement with our brand is also be- smaller gatherings and celebrations. We proud to off er two rating systems (commu- Rob Nickels partnerships and the programsder the broaderthat we Peapod umbrella. We had coming more digital and real-time – more nicated at the shelf and soon to be on-line), can anticipate increases in cooking and eat- was simply trying keep up with the product Customer response has been tremen- used to fulfill orders duringa partnership the first wave,with Instacart that covered dously positive and we remain extraordi- use of the online circular, increased digital How Good and Guiding Stars, that help Director of Produce and Floral ing at home. We can anticipate that people demand our customers placed on stores, we are ready to handle anyonly volume portion increase of our geography, and we narily focused on enhancing the customer coupon downloads and tracking of loyalty customers make more informed decisions Giant Food will shop less frequently but buy more per distribution centers, and shipping partners. that may or may not be seenhad in 50 the next-day future. store pickup points with experience and meeting customer demand rewards on our website and app. Th ese dig- about the food they purchase. How Good 1. Beyond the direct impacts on prod- trip. We can get ahead of shifts in the sales With the restaurant industry being held to a somewhat limited selection since these ital tools enhance both online shopping as mix with durable goods becoming more by delivering what she wants, when, how helps customers choose products based on uct supply from increased demand and strict dining policies, more than half of 3. Ultimately I believe thatpickup customer operations eat- fell under the Peapod well as the in-store experience. - important than highly-perishable goods. and where she wants it. their sustainability and Guiding Stars helps impacts on harvesting, packing, transpor their business was initially funneled back ing trends are going to increasewarehouse in not umbrella. only Eventually, most households will be om- We have built contingencies and developed Th is work will continue into 2020 as we customers pick foods based on their nutri- tation and store operations, the greatest into grocery stores. This in fact created a home consumption, but in overall healthy nichannel to some degree. Our job is to a robust “if-then” matrix to ensure that we By the end of 2019, we fully integrat- expand Giant Pickup with additional loca- tional value. challenge has been in understanding and back flow of demand on our distribution eating as well. As our customersed our Peapod continue Delivery business into the deliver a diff erentiating omni-channel and can support and supply our customers safe- tions and continue to enhance our Giant Another way we are working to meet anticipating consumer needs and consum- networks, as many companies struggled to to learn about the importanceGiant Foodof nutrition omni-channel operation, and digital shopping experience and continue ly and effectively. We have much-improved Delivers model with even more same-day evolved expectations is through a focus on er behavior. With COVID, consumers not fulfill the drastically increased orders that and health benefits thatrebranded fresh produce this businesshas as Giant Delivers. to grow with our customers’ ever changing practices and protocols in place today from delivery markets. We have a tremendous making the shopping trip as easy as possi- only changed how much they bought, but stores were placing. There simply weren’t to offer, we will see ourGiant department Delivers salesis now locally managed by interests and needs. supply chain to frontline store operations, team of people across Giant Food and Pea- ble. Our Giant Pickup and Giant Delivers what they bought and how and when they enough shifts, associates, and trucks avail- lift and shift from Gianttraditional Food prepackassociates- in Hanover, MD, 3. and are well-positioned to be here for our able to process and distribute such large pod Digital Labs, and I am very confi dent Every day, we work extremely hard services meet our customer’s desire to be shopped. The COVID landscape has creat- aged items and/or processedand not foods. only providesI can a broad selection of to deliver an exceptional customer experi- customers even under the most challeng- orders that stores were placing for not only in our ability to innovate and stay on the able to shop whenever and however they ed the necessity for more meals and more see stores being gearedquality towards products those said for next day home deliv- ence to every single shopper - through our ing circumstances. produce, but for each and every one of their leading edge of online grocery. want by ordering online. We’ve also intro- cooking in the home, which brings with it shifts and trends, withery, possibly but we larger have begunpro- to add same day de- product assortment, our product quality, perishable and center store departments. 2. Th e competitive landscape is as in- duced expanded digital off ers, and in-store a host of challenges and opportunities. To duce foot prints and liveryincreased across focus several on markets. We continue our pricing, and our associates. Th is is the 3. I certainly do not want to tip my hand As a company, we looked for alternative tense as ever, and the ways in which con- technology, such as Scan It and Deli Order meet those challenges and deliver upon our perishables. Freshness,to quality, partner andwith valueInstacart for immediate de- foundation that Giant Food was built upon, here, but I do envision an experience that ways to meet our customers’ needs and re- sumers shop continues to change and grow. Ahead, that enable a faster, easier in-store customers’ needs, we have adjusted set-siz- will be the keys to success!livery (1-2 hours) and have expanded this and one that our customers have come to provides true “connectivity.” Connectivi- lied on the strong partnerships we had with While only a small percentage of groceries shopping experience. And there is more to es, added variety and modified our sales service to cover our entire market, along expect from us. Th e customer experience ty to me is about genuineness. It includes third party distributors to ease the pressure are sold online today, the expectation of come – we will continue to roll out features planning and merchandising. Certainly Jon Steffy with beer & wine where available. And fi - includes tens of thousands of daily mo- building trust, expanding and showcasing being put our on warehouses. This hand- ease and speed is continuing to grow, and through our new web and app experience there was (and is) heightened attention VP and General Managernally, we built and opened 102 in-store Gi- ments, executed by tens of thousands of local products, delivering transparency, in-hand process not only benefitted us and I believe we will see signifi cant growth in that will make it more seamless for our cus- around product handling and safety. In a ant Pickup sites where customers can order associates across our company. We refer to driving sustainability and embracing en- our customers, but also helped keep those Four Seasons Produce this channel for years to come. Th at said, tomers and provide more options than ever reversal to trends we’ve seen over the past the same great variety and quality available these daily moments as “the little things,” vironmental stewardship, furnishing sim- said distributors afloat as many may have 1. The produce supply chain was tipped the physical grocery store is not going away to customize their shopping experience. several years, we’ve seen a resurgence in in our stores, at in-store pricing, for pickup and we fi rmly believe these little things are plicity, providing education, offering con- been relying heavily on restaurant sales as anytime soon. Giant, as well as many of our Certain generations may drive the inno- packaged produce items and value-size op- out of balance back inin as March little asand 4 hours.April Each order through Giant – they matter to every customer of venience/ease of shop, and creating known part of their business model. Ultimately competitors, are still opening new loca- vation we see, however, we feel confi dent tions. We are squarely focused on customer when foodservice plummetedour Giant Pickupand retail service is hand select- every generation. experience which includes everything from as well as adding new value to deliver an these partnerships allowed us to keep our demand spiked. Fortunately by May, many tions every year. that much of the innovation and evolution ed by a Giant Food associate in-store and Over the past couple of years we’ve put customer and associate safety, to in-stock exceptional omni-channel shopping expe- conditions in place and in stock rate high grower/shippers were able to restructure What we must adapt to is the changing will be to the benefi t of everyone and adop- personally delivered to our customers’ car additional focus on key areas where we be- conditions, presentation and store condi- rience. We are on a mission to understand on a consistent basis, no matter how the their focus to meet the increased retail- ways in which consumers want to shop – tion will occur across generations. - upon arrival. lieve our customers, particularly Millenni- tions, value, and customer engagement and and seamlessly meet the needs of tomorspotlightvolume increased. on the er demand even though they had planted both in and out of store. Th is is why we 4. Any changes that reduce SNAP bene- Peapod was a pioneer in the e-commerce al and Gen Z customers, are evolving their friendliness. In extraordinary times, ordi- row, to be the meaningful choice, and to before the pandemic for foodservice specs. have started to think holistically about fi ts puts a tremendous amount of pressure business, and Giant Food was extremely expectations of all retailers. We’re continu- nary things become very important, so we wow and win confident and inspired con- 2. After initially experiencing an influx And the USDA Farms to Families box pro- customer behavior at Giant. Physical stores on our customers who are facing diffi cult fortunate to already -have great tools in- ally enhancing our assortment so that our are very focused on our customer and on sumers. of business and demand that was unlike gram has helped to keep some foodser will continue to play a huge role in cus- times. It is still unclear how this latest pro- tegrated into our Giant Pickup and Giant selection includes not only the staples our the shopping experience. any other event ever seen, we have gained vice-centric growers and distributors going tomer loyalty – they aff ord customers the posed policy change would impact individ- Delivers operation. Beyond a standard on- customers are looking for, but foods that Ricardo DiMarzio a better understanding of what needs our during otherwise hard times. opportunity to interact with our associates, uals across the markets we serve, or how ISPANIC line ordering system, there’s a feature that refl ect the diff erent cultures of our neigh- 2. We now have a better understanding Sales Manager for ProduceH stores and customers will require.ECTOR As result, browse the aisles for meal inspiration, pick many individuals may be able to mitigate S builds your cart from past orders - it’s like borhoods, new trends or unique fl avor pro- of the impacts of a “shutdown” and have a Albertsons Mid-Atlantic we have created both initial and secondary See PRODUCE INDUSTRY up unique items, and can also be extremely plans to keep up with the possible increase 8 | FOOD WORLD fi les. And, as we expand our off erings, we’re “road map” for how to operate in this en- 1. The biggest challenge that the pro- on page 12 January 2020 See OUTLOOK Sales In Hispanicof volume. This Foodscoupled with Marketour existing In U.S. Could Grow To More Than $21 billion In 2020 vironment. For example, we can anticipate duce industry has faced during COVID on page 12 a stop to large gatherings but increases in www.foodtradenews.com Hispanic consumers in the rate of the Latino market would U.S. control a total of $1.5 trillion 2020 Census will fi nd that the be the third-highest growth rate panic foods marketers to fulfi ll U.S. Hispanic population will comfort zone by trying Hispanic in buying power, up 212 percent among all global economies. consumer desire. this decade, according to the Se- eclipse 62 million individuals or foods, or have outright rejected Relative to the overall U.S. Over the past 50 years, the lig Center for Economic Growth 19 percentwww.foodtradenews.com of the U.S. total pop- Hispanic food’s tastes and tex- at the University of Georgia. If market, Latinos have a high la- ulation. minority populations in the U.S. tures. bor-force participation, faster have increasingly integrated into 8 | FOOD WORLD October 2020 you are a marketer looking to A report from Packaged Facts, population growth and increas- the mainstream of American Marketers of Hispanic meals grow your brand, these fi gures “Hispanic Foods and Beverages and beverages aim to remain alone should lead you to take a ing consumer spending. food culture. Hispanic foods in in the U.S., 6th Edition,” cover- particular have been important competitive by providing loyal hard look at the Hispanic mar- Between 2010 and 2017, prod- ing Hispanic food marketers’ points of contact and integra- Hispanic foods consumers with ket to drive growth today. Right uct and services consumption eff orts as well as consumer be- tion, especially for Hispanics new cultural taste experiences, now, Hispanics account for one among U.S. Latinos increased havior, projects that sales in the who have in the last fi ve decades leveraging Hispanic food cul- out of every six Americans and by 42 percent – that’s 72 percent Hispanic foods market in the contributed tortillas, tacos, bur- ture’s aura of authenticity that their aggregate buying power is faster vs. non-U.S. Latinos. U.S. will increase in size from ritos, and salsa to popularize larger than the GDP of Austra- appeals to consumers. Hispan- When it comes to Hispanic close to $17.5 billion in 2015 Hispanic foods in the kitchen, at ic foods marketers are seeking lia. to over $21 billion in 2020, a consumption, data in a report home and in restaurants. ways to integrate their products compound annual growth rate Need more data? Th ese facts from Morgan Stanley, “How the into other food trends, especial- (CAGR) of 3.8 percent. Sup- It is estimated that the His- curated by CNBC show that Gen Y+Z Boom Rolls Th rough panic food market has become ly into the growing demand for Latinos may be the key to future the US Economy,” suggest that porting this solid growth will be the ongoing increase of the a part of American food culture “free from” foods. Th ese mar- US economic growth, should do outsized growth in the Hispan- for at least a third and perhaps keting methods will be crucial the trick. ic population will be support- Hispanic population in the U.S., both in numbers and as as much as half of the total U.S. to both longtime Hispanic foods ive of above-average spending population. Hispanic foods are GDP among U.S. Latinos in- a share of the total population; consumers as well as newcom- (consumption) growth on cell a familiar presence for about creased to $2.3 trillion in 2017, the growing sophistication of ers to the market. Further, the phones, food at home, apparel, another third of the U.S. pop- up from $1.7 trillion in 2010. the mainstream population in Hispanic food market now of- and housing. ulation. Th e remaining block If the U.S. Latino population terms of their acceptance of and fers more mainstream versions Hispanic digital agency Cap- of consumers, 20 percent to 30 were a country, GDP growth desire for Hispanic food culture; of its products to consumers turaGroup said it expects the percent, has either not shown an and the creative eff orts of His- still wary of the Hispanic food interest in stepping outside their culture. As we do each year, Food Trade News Jim Bottino asked some local retailers to discuss the way they address Hispanic Heri- Bottino’s ShopRites to keep our stores stocked. We tage Month in their stores. Th is year we are focusing on experienced increased demand the impact of COVID-19 on these retailers’ operations. 1. As was typical with many across many product categories Our panelists are Jim Bottino, president of Bottino’s of our product categories, during the height of the pan- ShopRites, and Ivan Bueno, director of marketing for COVID-19 had an impact on the demic, when people were staying Marketplace of Bushwick, a Key Food member. availability of our Hispanic off er- home and cooking more at home. ings, especially at the start of the Items such as paper and cleaning OUR QUESTIONS: pandemic earlier this year. As a supplies, fresh meat, and poul- of your customers and result of the crisis, consumer de- try were in great demand and 1. How has COVID-19 im- workers? mand across this category has we worked closely with our part- pacted the availability of 3. How do you communicate increased and demand for some ners to make sure we had those products has more than doubled. products and became as innova- products for your store, with your customers about We are continually working with tive as possible. For example, we especially Hispanic and the situation the pandemic Latino products? Have you our vendors and sourcing new were able to purchase meat from has caused - i.e., product suppliers to best meet the needs our suppliers that was originally had to utilize diff erent sup- shortages, price increases, Jim Bottino pliers to get the products of our consumers and intend to packaged for restaurant use. Our safety procedures and pro- preserve our Hispanic Heritage for our customers. skilled ShopRite butchers were you need? Will this im- tocols? month program as it is important then able to cut and package that pact your normal Hispanic 2. When the pandemic began meat for retail sale at our stores. 4. Have you seen changes to many of those who shop in our Heritage month off erings? stores. All of our work over the earlier this year, we worked quick- We also put temporary limits on in your online ordering 2. last six months has helped prepare ly to adapt and make changes some products to make sure all How have you adapted and home delivery ser- your stores, and/or prod- us for the future. Th ere have been during an unprecedented moment our shoppers could get what they vice during the past few for retail. We hired more staff , uct off erings, during the numerous changes to how we op- needed. months? Please explain. expanded our warehouse capa- Today the supply chain hasa- crisis to address the needs erate and how people shop, but our goal is always to provide the bilities, implemented many safe- best possible shopping experience ty measures across all our stores and worked closely with suppliers See HISPANIC HERITAGE Q&A on page 12 10 | FOOD TRADE NEWS September 2020 WWW.FOODTRADENEWS.COM
EDITORIAL OPPORTUNITIES ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ Q&A Features, Events & Awards D O ing those now - is that we will take several aisles out of could take us in to the future. When I talked with our the center of the store and really put that space into the people about the fi ling, I talked about the fact that we fresh side of the business, so that customers can haveby the Jeff Metzger had a good business, but a bad balance sheet. Entering things that they want. the Chapter 11 reorganization process was not an easy At what level or hard number have decision for us, but we did it voluntarily. We knew we Food Trade News: value to the customer. If we simplify our promotional were getting pushed in that direction and the level of you been able to increase your cap-ex? program and cut out 20 to 30 percent of the types of debt that we accumulated under past ownership was no promotions that we have every week, our store teams Frank Curci: Th at is a little bit hard to answer because longer sustainable in today’s competitive environment. are going to have more time to prepare the store for the We were at the point where we could not do the things last year during the reorganization process, we had al- customer, give service to the customer, answer ques- & most no cap-ex program. We have a cap-ex programSpinner’s Ineptness Foodthat we needed to do to sustain and growTrade our business. tions, be able to guide them through our store. It is a We had to address our balance sheet and that is what we now that will be right up there with the industry stan- change that we are pretty excited about. As we were were able to accomplish during the bankruptcy. Th e big- dards. We’ll be able to spend $40-$50 million, in the past going through this reorganization it became clear to us gest thing was that we reduced our debt level from $700 we were spending maybe one half of that. And of course,Has UNFI Heading that we were becoming harder to deal with in terms of MAFTO ‘Christmas For million down to under $400 million, with a reduction during the last year and a half we were spending almost people understanding what we were doing, but it wasn’t Q in interest cost of approximately $40 million. Th at was nothing. We will be able to do 10 to 15 major remodels just the customers, it was our vendor community and it A a year. One thing about upstate New York is that it is was our own staff here in the office who were producing All Kids’ Draws Notables the most important component of our ability to move forward. a low growth market, quite frankly. When we compareTowards Black Hole plans. We are trying to get through that process to make our cap-ex programs to others in the industry, there is everything easier. To Springfi eld CC Food Trade News: What have you been able to do with almost no new square footage growth in our market. So, that fl exibility, with that freedom? You had the plan, you are not going to see a lot of ground-up new stores Food Trade News: You mentioned that you are going you couldn’t really accelerate it to overdrive, because for us and those are the most expensive things to do. to simplify some merchandising, inferring looking at 10 With Frank Curci you were fi nancially handicapped. So, what are some of When we look at our capital program, we really think It wasn’t quite at the level of “alter- items, what fits better, what may have a better turn result the things that you are able to do now that you have re- that this is a good level of spending, it is one that we because of simplicity, efficiency. So, since basically half Over the past 12 years, Tops Friendly Markets, a strong gained that fl exibility? can handle as an organization. We have this fresh formatnative facts,” but UNFI CEO Steve (“Se- of our readership consists of the supplier community, presence in the Western New York market since its founding that we built a couple of years ago, Orchard Fresh, that what will vendors see that is different? Now that we have the fi nancial fl exibility is a totally diff erent customer base forThe Topsus. MarketsWe learned executive team includes (l-r) Jack Barrett, EVP of HR; Ron Ferri, EVP of Operations; Frank Curci, Chairman in 1962, has experienced some challenging times. Th e region- Frank Curci: and CEO; John Persons, President and COO; and David Langless, CFO. a lot about prepared foods and what the modernnor cus- Spinmeister”) Spinner, as almost al- Frank Curci: al chain was acquired by Morgan Stanley Private Equity in to move forward, we have also reduced our cost of doing The challenge is how do we revamp our tomer wants with this format. We opened the Orchard whole program so that it is not only better for custom- 2007, then sold back to a management group led by CEO business in several other areas. Now we can go about From page 22 rebuilding our business in the way we know we need to Fresh store less than two miles from an existingways, really painted a bullish and rosyple of years picture that has been an extremely big challenge for ers, but better for vendors. We are going to deal with Frank Curci in 2013. Curci has served as the company’s CEO in response to the changing consumer. For instance, we good traditional Tops store, and we thatfound people that almostwant and the fresh side of the business that us is the proliferation of formats like Aldi and Walmart, vendors on a more strategic basis. Instead of our catego- since 2007. Needing to reduce debt and restructure other as- weren’t able to put money into our stores like we wanted all of the store’s customers did not comemay from have our beenof store, ahis little company’sbit behind the times future and a little during bit which its have recent extremely low prices, a lot of emphasis on ry teams fighting to try to get items to put in the ad and pects of its organization, Tops fi led for Chapter 11 protec- to do. Historically, our stores are pretty well invested in, they came from the rest of the market.lacking Th ey in came terms from of what the modern millennial custom- own brands and are a very easy shop for people who support those items every week, now we are going to tion in February 2018; nine months later it emerged from but the last couple of years we really didn’t have the fi - competition and they came to us becauseer wants. we are So,Q1 fulfiyou couldll-conference see more of a combinationcall. And there why are shouldn’tjust looking for low prices. We do have a strong own build programs for the long run that could be relevant bankruptcy as a company better equipped to compete in its nancial fl exibility to continue that investment. And, you ing a need for them for healthy, natural,in terms prepared of going foods. forward. brand offering, we do have a promotional format, but current market landscape which includes 163 stores in New know, I have been in this business a long time, and the Items that they quite frankly couldn’t get in a more tra- trying to match Walmart on price is very difficult for a Food Trade News: company like us. In fact, it is impossible. So, we have to York, Pennsylvania and Vermont and. We recently visited changes that we have seen in our customer preferences ditional supermarket setting. he be Whatbullish? remain Tops’Must biggest you chal ask?- Allegiance Retail Services lenges? Its biggest opportunities? WWW.FOODTRADENEWS.COMover the past couple of years is the greatest that I have do other things to attract people and those other things Curci to discuss how Tops is faring post-bankruptcy. Food Trade News: And now that the company’s foun- have to be around experience and solutions. The vendors should know that we are now seen in a long time. We know that our stores have to Frank Curci: In its recently completed peri- Retailers Flock To New Since coming out of bankruptcy, in dation has been restored is there any possibility that I youthink our biggest challenge is, and this going to be looking at programs for the long Rapidly Building Food Trade News: refl ect those preferences. Th e changes I’m talking about is probably pretty obvious, that we are a medium sized Food Trade News: really revolve around perishable off erings, more meal will open more of those or other related type formats, Now that the company has been addition to during the bankruptcy period, what changes company. I likeod, our UNFI size, I like posted that we are a small net enough loss stabilized, of $383.9 you know what the priorities are, you have a run, to drive their business in the long run. We York Produce Show At solutions, grab and go. We needed to have customers off set formats? have you and your team made, important changes, to that we can understand our stores but still big enough vision of what you need to do, can you describe to our be able to come into our stores and fulfi ll their needs for are not going to be looking to nickel and dime Independent Business better ensure Tops’ long-term stability and success? Frank Curci: Th at’s an interestingto havequestion. some scale.Th e Butshort we compete in upstate New York readers and your customers, although they won’t be Vol. 75 No. 12 WHOLESALERthat night’s meal and ISSUE that meant expanding the perish- December 2019 million, delivered earnings per-share Jacob Javits Center with some of the best and biggest in the business. When reading this, what they might see that is different from “on every little individual thing that we do. We Frank Curci: Let me approach it this way. When we able side of our stores. So, our delis, bakeries and meat answer is yes. What we see as a real opportunity for us Newsis to take what we have learned inyou that look format at our and competition, in- it is Walmart, Wegmans say, a year ago? want to build advertising programs, we want to departments had to be able to meet the challenge of entered the bankruptcy process we knew that the posi- and Aldi. Thoseof roughlyare the big three half that ofwe competewhat with.was projected, providing meal solutions for people. When we go into corporate it into a more traditional supermarket com- 24 tive thing we had going for us was that we have a strong The way we compete with them is by being different. Frank Curci: There are a couple of differences that we build pricing programs that are going to build our stores now, we really need to spend a little bit more pany so that you have a combination of the groceries underlying business. Our network of stores is good, we We are a promotionaland demonstrated retailer. None of those little three evidence are are really thatgoing toit concentrate on in the coming year. money to expand the fresh side of the business, really volume for both of us over the long run. We are 2023 Is Target Date To Operate 22 Depots were happy with our management team and our ded- reallySee promotional Tops Markets retailers, they are more everyday low We know that we have to be an easy place for people to at the expense of center store. What you will see in our on page 23 icated and passionate associates. We thought that our price. But they are much bigger companies with much shop, and our promotional plan in the past tended to get still a promotional retailer, we will still have new stores, and we have eight to ten stores that will be can effectively build enough new sales go-to-market strategy was a defi nite diff erentiator and greater resources in an area that doesn’t have a lot of a little bit too complicated and it was complex enough remodeled this year - we are right in the process of start- promotions, but they will be more thought out.” one that resonated with the upstate New York custom- growth, so marginsto signifi are always cantly tight in our businessshave and down that people the started tomore be a bit confused. So we are going er base. What we did not have was a balance sheet that Kaleida Health. He is also a membertop of line the growthboard of is always difficult in this type of envi- to be more straight-forward in our pricing. Custom- Frank Curci, CEO was chief executive offi cer of Tops Markets, LLC and held directors of Topco Holdings, Inc., a ronment.buying cooperative. We have had investment by Aldi in terms of ers will see everyday prices come down, our ads will than $2 billion debt it accruedbe cleaner, when there willit be fewer hoops for the customer FRANK CURCI HAS SERVED AS CHIEF EXECUTIVE senior leadership positions at the Bi-Lo chain in South their remodel program and Walmart and Wegmans, Aside from business, his hobbieswhile include they running may not and be opening up a lot of new stores, to jump through, more about specific price points on Ahold Delhaize USA To offiSpend cer and director of Tops Markets, LLC since December $480 Carolina and Edwards Super Food stores Million on the East golf. are still formidable competitors, and competing with known value items that they will be able to come in and purchased Supervalu in October 2018. to customers. We are going to try and build promotions 2007 and as chairman of the board since December 1, Coast. get every day. We are trying to make ourselves a little bit Curci resides in Clarence, NY withthem his is wife, always Robin. a challenge. They have more resources and displays that help customers have a solution, a meal more efficient in how we deliver value to our customers. 2013. Curci also spent nine years from 1987 to 1995 at and we know that in order to compete with them we solution, instead of just items that people want us to They have three grown children and two grandchildren. Within two days of theThat earningswill have the benefit of making us a little bit more Curci has more than 40 years of experience in the su- Mayfair Supermarkets, which operated as Foodtown in have to be different, we have to be nimble, we have to push. It is going to be more of a thoughtful program, it Tops Markets LLC, is headquartered in Williamsville, efficient here in the office. It will make our store teams make quick decisions, we have to keep our stores fresh is going to be a program that we can build loyalty over permarket industry. From April 2005 to September 2006, New Jersey. release and the follow up analystsbe a little bit morecall efficient in how they display prod- NY and operates 163 full-service andsupermarkets up-to-date, – 158 we have to do things that they are not a longer period of time. There will be more longer-term he served as chief operating offi cer for Alabama-based He is a certifi ed public accountant and holds an ucts and programs and make it easier for our customers company-owned and fi ve franchisewilling locations to do andunder it theis not easy in the long run. TPRs, lower shelf prices, those kinds of things where ev- To Develop Self-Distribution Supply Chain to understand. We are revamping the way we bring our Southern Family Markets, a subsidiary of C&S, where he M.B.A. and a B.A. from Rutgers University. in which Spinner and his UNFI syco- erybody can depend on a little bit more normal volume Tops banner. With more than 14,000Food associates, Trade News: Tops is promotions to the market. led the start-up of two chains emphasizing the neigh- So, I think that you have answered than just promoted volume. On December 10, Ahold Del- gy to transition the supply chain facilities. In addition, ADUSAIn addition toplans. his career, Mr. Curci serves on the a leading full-service grocery retailerthe inback upstate end Newof the York, question – those are your biggest borhood grocery store format. From June 2004 to March phants expressed their “excitement”Food Trade News: to boards of the Buffalo Niagara Partnership, The Food In- northern Pennsylvania and westernopportunities. Vermont. The challenges lie in front of you, you see Are you also implying that the actu- Food Trade News: 2005, he served as senior vice president of operations al associates, the labor in the stores, might be deployed If I were a typical vendor, give me a dustry Alliance of New York State, the Food Marketing them, facing powerful regional or national chains, dif- take away that would encourage me beyond the fact that haize USA (ADUSA) announced network into a fully-integrated, will partnerat Farmer Jack, a supermarketwith various chain based in Michigan. compa- Th e announcement will likely differently, a little bit more embracing directly with that Institute, and is Chairman of the Board of Directors of ferent formats.the You fi have nancial to clearly delineatecommunity, what that the company’s you are going to be deploying cap-ex, you are putting customer? plans to transform and expand its self-distribution model. nies (yetWhile at Koninklijkeunnamed) Ahold N.V. from 1995to tobuild 2003, Curci two mean a signifi cant reduction separationof is andstock at the same plunged time be very from good atan it. already lousy more into the finished product, theoretically growing Frank Curci: That is absolutely true. I’d say that the Frank Curci: Absolutely. Right now, too much of our U.S. supply chain operations over Th e move includes the acqui- fully-automated22 | FOOD TRADE NEWS frozen April 2019 facilities. services (aft er 2023) betweenthe biggest www.best-met.com change$9.87 in our marketplace per share over these to past a cou dismal- store teams’ $$6.84 time is spent on changing prices, building See Tops▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲▲ Markets weekly displays, doing things that really don’t deliver on page 24 www.best-met.com the next three years by investing sition of three warehouse assets Th e initiative will provide the per share (more than a 30 percent April 2019 FOOD TRADE NEWS | 23 $480 million, including for leases. from C&S Wholesale Grocers infrastructure needed to support See ADUSA SUPPLY CHAIN drop). T N T from page Th e investment supports a strate- and new leases on another two aggressive omnichannel growth on page 37 In the Q&A portion of the confer- their stores were also previously part that plan). If TLI Bedrock were to acquire Kings/ ence call, “Senor Spinmeister” said he Balducci’s and negotiate a new separate plan (which the hedge fun tried to do), Acme would be the only retailer supporting that pension fund with nothing to show for it. acknowledged that the market is skep- With Acme’s successful bid it will be the only retailer in the Local 360 pension plan, F but it now will potentially add 27 new stores to its portfolio, many in new demographical- tical (did you mean to say realistic?), ly favorable markets that offer Acme the opportunity to highlight its fresh food prowess. but the company is really “excited” In a statement from John T. Niccollai, president of UFCW 464A, one of the ve D unions that represents Kings and Balducci’s clerks and meatcutters, the veteran labor about where it is. “The management leader said, “The Local union views the acceptance of Acme’s bid as a positive for our brothers and sisters from Kings. We will be dealing with a company run by supermarket Th e Lidl banner was offi cially Center Moriches, both in Suff olk team feels great about what we’ve ac- operators as opposed to investors and, further, we presently have an excellent working unfurled on Long Island Decem- County. A third Suff olk County complished and where we’re going. Our relationship with the Acme company executives and eld supervision.” When Acme assumes ownership of Kings/Balducci’s it will service those stores from ber 11 when the German discount unit opened on December 18 in synergies are on track. Our customers its distribution center in Denver, PA which also recently incorporated the warehousing love what we’re trying to do. I think our and logistics of sister rm Safeway/Eastern. Kings/Balducci’s has been supplied by retailer opened its fi rst two stores Huntington Station, NY. Wakefern Food Corp. since 2014. T T T there – in West Babylon and Th ose units were part of a associatessuppliers gatherlove inwhat person we’re for atrying da of fun,to do, food and fello ship ith customer and vendor partners To review the course of events that led up to the auction, let’s begin on August 23, to raise mone for a good cause, this ear the hosted a different da of events. Septem er 22, 2 2 when Kings/Balducci’s owner KB US Holdings (part of Qatar-based GSSG Capital), led 27-store package of locations that startedand we’re ith donatingjust going to the to Make- - ishprove it.” Foundation s Philadelphia, Dela are Sus uehanna Valle s for Chapter 11 bankruptcy protection. THE NEW JERSEY FOOD COUNCIL CELEBRATED ITS 50TH ANNIVERSARY chapter Really? , I’m raised looking in partnership for those ith thecus- produce distri utor s vendors, plus 2, generousl At that same time, it was announced that New York private investment rm TLI Bed- were originally owned by Best donated directl from Four Seasons Famil of Companies associates via pa roll deduction elective. this month. At the celebration were past chairs (l-r): Donald Norkus, rock, which offered $75 million for the regional chain and was deemed best bidder, was Markets, which the privately-held tomer ith the and muscle vendor of sign-upassociates sheets. ho volunteered, My in the afternoon Four Seasons gave a a more of cially granted stalking horse favorable status by the U.S. Bankruptcy Court (Southern Francis Markets Foodtown,; James McCaffrey, McCaffrey’s Food Mar- than , large food oxes to families in the greater local communit impacted COV D or other ise in District of New York) prior to a formal auction of the retailer’s stores. extreme value merchant acquired needresearch ith a truck indicates to trunk t pe that event those on the compan s lists campus. Four Seasons donated 4, pounds Additionally, KB had obtained a commitment for approximately $20 million in debt- kets; Joseph Pagano, Inserra Supermarkets; Judy Spires, King’s Food ofwould premium be fresh very produce short to ones, e included but I’dand likesponsored the ox cost and transport for its food ank or-in-possession (DIP) nancing from its existing secured lender, Whitehorse Capital partner, Blessings of Hope, ho packed each ox ith grocer items too. dditionall , E ual Exchange Management LLC. Markets ; William Sumas, Village Supermarkets; Leonard Sitar, ShopRite donated 4, pounds of ananas. See TAKING STOCK TLI Bedrock, which had a 30-day window of exclusivity to negotiation with Kings/ See LIDL of Carteret; Linda Doherty, NJFC; Richard Saker, Saker ShopRite; Phil mong those on hand for the ig da ere (l-r) Bharath ollapalli, l a Tlumach, Ro urt and inn Balducci’s ve UFCW labor unions (Locals 342, 360, 371, 1464A and 1500) that began Scaduto, Food Circus Supermarkets. More photos are on pages 30-31. illiams, Four Seasons; Dennis onHeron, page Make- - ish; 6 reg oss, Jason Hollinger, elson Longenecker, on July 13 to hammer out potential changes in existing labor contracts and pension on page 22 im Miller and Jon Steff , Four Seasons. funds, failed to reach agreement. TLI Bedrock termed the bargaining as an attempt to “modify a few discreet, minimal and limited” aspects of their labor agreements. The unions saw it differently especially when the hedge fun tied to create a new annuity-driv- en pension plan in attempt to especially separate itself from the large shortfall in its largest plan with UFCW Local 360. Union of cials told us that despite the signi cant shortfall in the Local 360 plan, they were wary of a new owner who was seeking more than “moderate” change. One union of cial also said that he was not con dent that another new private equity owner without supermarket experience was capable of leading Kings and Balducci’s (prior to I ' KB US Holdings, the retailer was controlled by new York investment rms Angelo Gordon & Co and MTN Capital). About 1,900 of the retailer’s approximately 3,000 associates Bake Locall, are unionized. Kings/Balducci’s challenges date back several years. And while more upscale re- tailers have entered Kings’ marketing area (primarily Central and Northern New Jersey) her! over the past 15 years (including Wegmans, Whole Foods, The Fresh Market and more upscale ShopRites, the market leader), many of Kings problems have been created by Wante Everywher increasing debt. In its most recent ling for the 52-week period ended July 25, 2020, sales at its then-35 stores were approximately $590 million, but the retailer posted an $8.6 million Reserve your copy of the 2021 loss even during the COVID pandemic when virtually all food retailers experienced very healthy sales and earnings. However, pre-COVID sales were soft, and the huge nancial Grocery Industry Directory obligations Kings faced prevented the upscale merchant from adequately investing in its operations. Kings debt level is currently $114.9 million. Available For our Stores o Beginning in March 2019, Kings/Balducci’s has been working with investment advi- sor PJ Solomon to explore its sales options. After a prospectus was issued, PJ Solomon Contact said it had contacted 114 potential purchasers, 67 of which signed non-disclosure agreements enabling them to receive further information R . “Kings possesses wonderful locations and is very good at marketing its image,” O . . . . said a senior VP for a New Jersey-based retailer that competes against Kings. “But for many years they have not been competitive on price. When Kings was the only high-end, perishables-oriented retailer in their marketing area, they dominated that niche. But new T T continues on page
| FOOD WOR D October 2020 www. oo t e ews.com ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ Food CIRCULATION
World Category of Trade % of Circulation Food Trade Food World total circulation: 22,862 Corporate Chains: Executives/Buyers/Store Managers 38 Small Chains/Independent Operators 11 NewsWWW.FOODTRADENEWS.COM Convenience Stores/Mass Retailers 7 Wholesalers/Distributors 7 Manufacturers/Brokers 33 All Others 4
Food Trade News total circulation: 27,941 Corporate Chains: Executives/Buyers/Store Managers 37 Small Chains/Independent Operators 12 Convenience Stores/Mass Retailers 8 Wholesalers/Distributors 7 Manufacturers/Brokers 32 All Others 4
The area of coverage for Food World is Maryland, Virginia, Delaware, Central Pennsylvania and the District of Columbia. The area of coverage for Food Trade News is Pennsylvania, New Jersey, Metro New York and Delaware. Both publications enjoy national circulation to the corporate headquarters and buying offices of all the major retail chains that operate stores in the areas we cover. EDITORIAL CALENDAR Food World
Publication Date Special Issues & Features
January 11, 2021 Futurecast 2021 Materials due: January 4 Food World takes a look ahead at the year 2021.
February 8, 2021 Frozen Foods Materials due: January 29 IRI listings of the fastest moving frozen food items in the Baltimore-Washington and Richmond-Norfolk markets.
March 1, 2021 Seafood Issue Materials due: February 19 Food World puts a spotlight on the seafood industry.
April 5, 2021 GM/HBC Materials due: March 26 Highlighting the general merchandise and health/beauty care segments of the industry.
May 10, 2021 Dairy-Deli-Bakery Materials due: April 30 Symphony IRI listings of fastest moving dairy-deli bakery items in the Baltimore-Washington and Richmond-Norfolk markets. Plus, bonus circulation at the IDDBA Show in Houston, TX.
June 14, 2021 Retail Market Study Materials due: June 4 Food World’s biggest and most important issue of the year! The annual market study breaks down sales and share for retailers from all segments doing business in the Baltimore-Washington, Richmond-Norfolk and Central Pennsylvania markets.
July 12, 2021 Specialty Foods Materials due: July 2 Food World takes a look at the specialty food industry.
August 9, 2021 Direct Store Delivery/Manufacturers Materials due: July 30 Food World puts the focus on suppliers in the arena. Also includes company listings of the area’s DSD/ Manufacturers.
September 6, 2021 Naturals and Organics/Hispanic Heritage Month Materials due: August 27 Food World explores the natural/organics business in the retail sector, highlighting future trends and showing you who’s on the cutting edge. Focus on Hispanic Heritage Month will also be featured.
October 4, 2021 Produce Materials due: September 24 Food World explores the produce business and highlights future trends. Plus, bonus circulation at PMA Fresh Summit in New Orleans, LA.
November 1, 2021 Grocery/Brokers Materials due: October 29 IRI listings of the fastest moving edible and non-edible grocery items in the Baltimore-Washington and Richmond-Norfolk markets. Plus, broker listings.
December 6, 2021 Wholesalers Materials due: November 29 A study of the wholesalers in the Food World market along with company listings. EDITORIAL CALENDAR Food Trade News
Publication Date Special Issues & Features
January 25, 2021 Futurecast 2021 Materials due: January 15 Food Trade News takes a look ahead at the year 2021.
February 22, 2021 Seafood Issue Materials due: February 12 Food Trade News puts a spotlight on the seafood industry.
March 15, 2021 Frozen Materials due: March 5 IRI listings of the fastest moving frozen food items in the Delaware Valley, Central Pennsylvania, and Metro New York markets.
April 19, 2021 GM/HBC Materials due: April 9 Highlighting the general merchandise and health/beauty care segments of the industry.
May 24, 2021 Dairy-Deli-Bakery Materials due: May 14 IRI listings of fastest moving dairy-deli-bakery items in the Delaware Valley, Central Pennsylvania and Metro New York markets. Also, broker listings. Plus, bonus circulation at the IDDBA Show in Houston, TX.
June 28, 2021 Retail Market Study Materials due: June 18 Food Trade News’ biggest and most important of the year! The annual market study breaks down sales and share for retailers from all segments doing business in the Metro New York, Northern New Jersey, Delaware Valley, Central Pennsylvania, ABE and Northeast PA markets.
July 26, 2021 Specialty Foods Materials due: July 16 Food Trade News takes a look at the specialty food industry.
August 23, 2021 Store Delivery/Manufacturers Materials due: August 13 Food Trade News puts the focus on suppliers in the arena. Also includes company listings of the area’s DSD/Manufacturers.
September 20, 2021 Natural and Organics/ Hispanic Heritage Month Materials due: September 10 Food Trade News explores the natural/organics business in the retail sector, highlighting future trends and showing you who’s on the cutting edge. Focus on Hispanic Heritage Month will also be featured.
October 25, 2021 Produce Materials due: October 15 Food Trade News explores the produce business and highlights future trends. Plus, bonus circulation at PMA Fresh Summit in New Orleans, LA.
November 22, 2021 Grocery IRI/Broker’s Issue Materials due: November 12 IRI listings of the fastest moving edible and non-edible grocery items in the Delaware Valley, Central Pennsylvania and Metro New York markets. Plus, broker listings.
December 20, 2021 Wholesalers Materials due: December 10 A study of the wholesalers in the Food Trade News market along with company listings. ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ DISPLAY ADVERTISING RATES Food Food World World Food Trade News Food Trade
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