▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲▲ ▲ ▲ ▲ ▲ ▲ ▲ INSIDE ▲ TAKING THIS ISSUE STOCK by Jeff Metzger Food Trade Jim Donald: We Hardly Knew Ye That Jim Donald will be stepping down as CEO of Albertsons on April Allegiance/PSK Revive 25, seven months after he accepted the position and 13 months after Pathmark Banner With he rejoined the large Boise, ID-based retailer after 27 years, shouldn’t be New Brooklyn, NY Unit surprising. 30 After all, the catalyst for Donald to come back to Albertsons in March 2018 was Bob Miller, then chief executive of the supermarket chain and one of the greatest leaders in the supermarket business of the past 50 years. In the nearly 30 years that I’ve known Jim, he has often mentioned that he’s learned more from Miller (now chairman emeritus) about the grocery business than anybody else. Jim considers him a mentor. So, as Albertsons began the process of attempting to complete a Price Rite Marketplace A PUBLICATION OF BEST-MET PUBLISHING, INC. merger with Rite Aid, Miller called on his old protégé to help run Albert- Revamps Five Discount Supermarkets In CT NVOL. 75 NO. 4 ewsSPECIALTY FOODS ISSUE APRIL 2019 See TAKING STOCK on page 6 32 Donald To Become Co-Chairman Of Large Chain Acme Bullish On ‘19 Initiatives; Sankaran Is Albertsons New CEO It’s been a busy month at Alb- mately 250 suppliers, brokers and weeks. Those stores that will be ertsons, which announced that distributors, was president Jim upgraded are located in: Newark, Jim Donald will be leaving his Perkins. The veteran Albertsons DE; Smyrna, DE; Ogletown, DE; post as president and chief execu- executive, who began with the re- Pike Creek, DE; Mount Freedom, tive April 25 to become co-chair- tailer in 1982 and also serves as a NJ; Woodbury, NJ; Freehold, NJ; man of the company. He will be corporate executive VP, said that and Westmont, NJ. REDNER’S OPENED ITS FIRST FRESH MARKET AT ITS BERKSHIRE Boulevard store in Wyomissing, PA on April 11. The 54,000 square foot replaced by Vivek Sankaran, for- he was optimistic about his com- Perkins listed 12 other Acme unit now features enhanced produce, meats, bakery and prepared foods mer CEO PepsiCo Foods North pany’s 2019 initiatives. units that will be enhanced later as well as a beer & wine bar. At the preview party were Redner’s (l-r) America, who has been appointed The always candid and direct this year including stores in: Up- Gary M. Redner, Alexis Foreman, Ryan Redner, Elaine and Dick Redner to fill those roles. leader said that Acme was be- per Darby, PA; Clifton Heights, and store manager Bill Eschbach. Locally, Acme Markets, one ginning to rebound after a chal- PA; Glenolden, PA: Philadelphia, of Albertsons’ 14 operating di- lenging fourth quarter created by (Woodhaven), PA; West Goshen, April 5 Is Big Day As 5 Martin’s, 1 Giant Debut visions, held its annual vendor lack of weather events (there were PA; Thorndale, PA; Boothwyn, meeting at the SugarHouse Ca- eight snow/ice storms in 2017), PA; Media, PA; Phoenixville, PA; Giant/Martin’s Opens Record Six sino in Philadelphia. Heading ongoing market overstoring and Levittown, PA; Horsham, PA; and the group of executives who ad- the fact that the Eagles did not Rye Brook, NY. With the excep- New Supermarkets On Same Day dressed the group of approxi- play in this year’s Super Bowl tion of the latter store, all other In a first for the company, Gi- earlier this year, are branded Mar- (they won the big prize last year; announced remodels will include ant/Martin’s celebrated the grand tin’s Food Markets and are located Acme is the exclusive supermar- the addition of beer and wine de- openings of six stores in four in Smithsburg, MD; Greencastle, ket retailer for the Eagles). partments. Moreover, 10 other states on April 5. PA; Berryville, VA; Hedgesville, Helping fuel Perkins’ excite- units with yet-to-be announced Five of the stores, which are WV; and Martinsburg, WV. In ment is that Acme has 31 stores former Shop ‘n Save locations addition, Giant/Martin’s refur- See ACME/ALBERTSONS slated for remodeling this year the Carlisle, PA based division See GIANT/MARTIN’S on page 44 including eight in the next six of Ahold Delhaize USA acquired on page 2 Bake Locall, Wante Everywher

Available For Your Stores Now! Contact 866.498.2253 Giant/Martin’s Opens Six New Stores In PA, WV, VA, MD On April 5 From page 1 entering new markets where nect with our brand whenever gin extensive remodels before it makes sense and expand- and however they want.” opening on April 5. bished and upgraded a former ing our offerings for our cur- The deal for Giant/Martin’s The retailer has recent- Redner’s store in Warrington, rent customers,” said Nick to acquire the former Shop ly made a series of strategic PA that closed in March 2018. Bertram, president of Giant/ ‘n Save locations was first an- investments to its store fleet The 56,000 square foot store, Martin’s. Along with the re- nounced in November 2018 Pennsylvania, including the which operate under the Gi- cent introduction of our Giant and was part of Supervalu/ first Giant Heirloom Mar- Who ant banner, serves as a re- Heirloom Market in Phila- UNFI’s plan to shed all of its kets in Philadelphia, where placement for a smaller store delphia and our Giant Direct corporately-owned supermar- three additional locations are previously located in nearby e-commerce hub in Lancaster, kets nationally. The deal was planned to open this year, as Jamison, PA. knows? our team has demonstrated a approved by the FTC in early well as new stores opening “These multiple store open- relentless focus on innovation 2019 and the five stores closed this year in East Stroudsburg ings align with our aggressive that allows customers to con- temporarily March 27 to be- and Walnutport communities. long-term growth strategy -

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www.best-met.com April 2019 FOOD TRADE NEWS | 3 spirit. For every Sunday home kets presented a $102,500 dona- disruption despite the growth in thought process is that they need game, customers who wear their tion to the American Heart Asso- the food industry. He questioned to have products at different price Phillies gear while doing their gro- ciation (AHA) in support of their what sets specialty foods apart, points so every person can afford cery shopping will receive a 5 per- in-store “Life is Why We Give” with the expected answer being to come to Eataly, hence stocking cent discount on qualifying pur- program, which raised funds in innovation, style, better ingredi- pasta at $2 per bag and $5 per bag. chases that total $20 or more, and the fight against heart disease ents and most importantly a per- Eataly has more than 30 locations officially licensed MLB Phillies and stroke. This donation was son behind the brand. He asked worldwide. If you haven’t visited merchandise will be available at all generated through customer con- that entrepreneurs refrain from one, do yourself a favor and treat Giant Food Stores in our region. tributions during a two-week, in- using the word, “artisanal” as big yourself to this unique experience. Later this month, Giant’s bakery store fundraising program during brands like McDonalds are now After a break where vendors with specialists will go head-to-head American Heart Month in Feb- using them. After all the stats and Italian products served up some to see who can decorate the best ruary. Weis stores raised nearly categories were reviewed, the key tasty snacks, Kevin Ryan of the Phanatic birthday cake (a very im- $92,000, and a corporate contri- takeaways were that specialty food International Corporate Chefs As- Soup to Nutz portant birthday in Philly) and for bution rounded up the donation is present in every channel, grow- sociation shared his thoughts on By Maria Maggio the first time, Giant’s social media to $102,500. “We are extremely ing by 6 percent annually; with emerging trends in specialty food fans will choose the winner. Giant grateful to our customers for their the food service sector growing retail. He reported growth in Ital- is also returning as the sponsor of generosity in support of our inau- fastest, and online growth still un- ian cuisine in restaurants especial- Spring brings us flowers, warm- the Phanatic MVP Club. Young gural “Life is Why We Give” in- der 10 percent. Dino Borri, VP of ly in the demand for charcuterie er weather, rain and my personal people ages 14 and under are in- store campaign in support of the global partnerships at Eataly, had and regional Italian selections like favorite, baseball. As the official vited to join the legions of young American Heart Association,” said a fireside chat with SJU professor arancini (Sicilian rice balls). He grocer of the Philadelphia Phillies, fans who enjoy access to great David Gose, senior vice president John Stanton, which wasn’t real- also shared comparisons of Italian Giant celebrated opening day by prizes, exclusive events, ticket dis- of operations for Weis Markets. ly a chat, as Borri, in true Italian cuisine menu favorites by Ameri- announcing its own starting line- counts and other benefits as mem- “AHA’s mission is to build health- fashion, didn’t really give Dr. Stan- can geographic regions. What sells up of new promotions to celebrate bers of the club, including a dis- ier lives free of cardiovascular dis- ton a chance to get a word in. Edu- in Philly, most certainly doesn’t in Philadelphia’s hometown team in count coupon for a custom cake at eases and stroke. At Weis, we are cation was key, he said, to continue the 2019 season. “Like all base- Giant in their birthday card from proud to play a part in the fight to make Eataly fabulous. And all See SOUP TO NUTZ ball fans, Giant has been waiting the Phanatic. In addition, as the against heart disease and stroke, training is in house at Eataly. Their on page 21 for opening day since the end of sponsor of Pride Night at the ball- and to give back in the commu- last season. It’s finally here and to park, on Wednesday, June 26, Gi- nities we serve.” The funds raised mark the occasion, we’re offering ant will join the Phillies by invit- will be used to support heart dis- our customers many ways to cel- ing fans to celebrate Philadelphia’s ease and stroke prevention, in- ebrate their beloved Phillies, show rich LGBTQ culture. Beyond the cluding nutrition education, in their team spirit and save at Giant, ballpark and the grocery aisles, Weis’ seven-state market area. all season long,” stated Matt Si- Giant’s sponsorship of the Phillies Just before we went to press mon, vice president of marketing, extends into the neighborhoods last month, the Saint Joseph’s Giant/Martin’s. “We’re excited to of Philadelphia to address hunger University (SJU) Academy of be growing our Giant Heirloom and promote healthy kids, two Food Marketing together with Market brand in the city of Phila- of Giant’s ongoing philanthropic the Italy-America Chamber of delphia this year and look forward priorities. Giant and the Phillies Commerce, held one heck of an to a great second season as the will team up in support of Phans inaugural International Specialty official grocer of the Philadelphia Feeding Families Day on Satur- Food Summit. The theme: “Buy Phillies.” So, what can we expect day, June 8, which will benefit Local, Think Global.” More than from the official grocer of the Phil- Philabundance. “This partnership 125 attendees had the rare oppor- lies? Healthy snack options from is a Giant win for Philabundance tunity to hear from the specialty Nature’s Promise, the company’s and those we serve,” said Glenn food industry’s leading experts SAINT JOSEPH’S UNIVERSITY RECENTLY HOSTED ONE OF ITS FAMILY private label line will be located Bergman, executive director, and feast on delicacies from New Business Legacy Speaker Series at its Haub School of Business, this at concession stands throughout one featuring guest speaker Ed Herr of Herr Foods. He relived the his- Philabundance. “And as a new York City’s finest Italian chefs. The tory of Herr’s and the road to success for the snack food giant founded the ballpark, and whenever the supporter of Phans Feeding Fam- day began with a report from Ron by his father, James Herr, and updated the audience on the future of Phillies score a home run in the ilies, Giant joins a great group of Tanner of the Specialty Food As- the family ownership of the company. Herr (2nd from r) is joined here 7th inning, customers can text a supporters, including Citizens sociation on trends in specialty by (l-r) Dr. Joseph D’Angelo, dean of the SJU Haub School of Business; code for an exclusive limited-time Bank, the Phillies and the phans, food. Chock full of statistics col- Troy Gunden, SVP of Herr Foods and Ed Herr’s nephew who is being offer. In store, Giant will reward its who help us to feed kids in need.” lected by Scan Data, Ron remind- groomed to succeed him as president; and Brian Brogan, director of customers for showing their team Earlier this month, Weis Mar- ed the group that there is huge the Initiative for Family Business and Entrepreneurship at SJU.

Jeffrey W. Metzger Karen Fernandez Food Trade News (USPS 562290) is President/Publisher Director of published­ monthly for $69 a year by PUBLISHED THE THIRD Terri Maloney Marketing/Digital Strategist Best-Met Publishing Co. Inc., 5537 MONDAY OF EACH MONTH VP/Editorial Director Beth Pripstein Twin Knolls Rd., Suite 438, Colum­bia, By Best-Met Publishing Co., Inc. Maria Maggio Circulation Manager Md. 21045. Periodicals Postage­ paid Publishers of VP/GM-Food Trade News Richard J. Bestany at Columbia, Maryland and additional Food World Kevin Gallagher Chairman Emeritus mailing offices. POSTMASTER:­ Send and Food Trade News Vice President address changes to Best-Met Pub- lishing Co. Inc., 5537 Twin Knolls Rd., Suite 438, Colum­bia, Md. 21045.

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www.best-met.com April 2019 FOOD TRADE NEWS | 5 ssssssssssssssssssssssssssssss TAKING STOCK From page 1 sons while Miller and then Rite Aid chief executive John Standley (another protégé) would work on digesting the bigger enchilada. Donald made it clear from the outset that rejoining Albertsons wasn’t going to be a long- term gig, but like all of his previous jobs, Jim would tackle this challenge with the same passion and tireless work ethic that have been hallmarks of his entire career (starting with Publix in his native Tampa in the mid-1970s). However, as it often does, life has a way of altering the best laid plans. When the Albertsons/Rite Aid plan failed to even make it to a shareholder vote, Albertsons’ principal owner, PE firm Cerberus Capital Management, felt that it now had to revamp Albertsons’ leadership in an effort to take it public or find another merger partner. In September, Donald, 65, agreed to take on the role of CEO, a role where he’s had plenty of experience from his tours of duty at Pathmark, Starbucks, Haggen and Extended Stay Hotels. He was also well versed in the often complex relationship that CEOs have with their private equity owners. Still, elevated status didn’t mean that Donald’s long-term focus had changed. When I had dinner with Jim last summer (pre-Rite Aid collapse) he made it clear that his role was transitory and that he would be moving on once all the collective parts were in sync. He added that he would attack his new job with the same dedication and zest as he did with his other jobs. When he was elevated to CEO the view would change, but Donald’s attitude wouldn’t. He was determined to retool a solid company with aging stores and significant debt (more than $10 billion). He was also confident that his strong people skills would only enhance an already solid culture. However, he made it clear that it was important to find his successor, one who was younger and perhaps would have a differentiated background. Vivek Sankaran, former PepsiCo COO, fits that description on paper. He’s 10 years younger than Donald and has also worked for a large, pres- sure-filled organization similar in size to Albertsons (approximately 270,000 employees). He became available after losing the battle to become Pepsi’s chief executive last fall when Ramon Laguarta was named to replace Indra Nooyi.

TAKING STOCK continues on page 12

6 | FOOD TRADE NEWS April 2019 www.best-met.com www.best-met.com April 2019 FOOD TRADE NEWS | 7 Pathmark name back in January And John should know, being from years ago.” Some of the to WIN (Women in Need) of 2016. After the purchase, Al- a former 33 year Pathmark vet- store improvements will include and its mission to help New legiance Retail Services began a eran. He added, “We all know a large fresh fruit and vegetable York’s homeless women and brand review and market anal- what Pathmark’s strengths were department, a fresh bakery, a their children rebuild their ysis, then developed a business — wide variety, great promo- fresh seafood and meat depart- lives. “We have always made it plan and refined the format’s tions and a strong in-stock po- ment, a large health and beauty a priority to highlight the out- operating principles. Addi- sition — and we’re going to con- care section, an extensive variety standing women at Krasdale,” tionally, Allegiance established temporize that. Customers have of Caribbean and ethnic food as said Dylana Silver, director of guidelines related to a “go-to- obviously gone toward digital well as an eclectic assortment of marketing at Alpha I Marketing, market” operating strategy, as well as to heat-and-eat and beers, the retailer announced. an affiliate of Krasdale Foods physical requirements and the prepared foods, natural and or- Pathmark will also offer online Inc. “While we celebrate wom- experience needed to potentially ganic, and more ethnic tastes. So shopping for pick up or deliv- en every day at Krasdale, this be designated a Pathmark oper- we’ve tried to add all of that to ery. As an old vendor who once specific day provides us an op- ator. PSK Supermarkets, and the what Pathmark was known for.” called on Pathmark many, many portunity to come together for a Metro Beat Katz family (Sydney, Noah and Noah Katz, co-president of years ago, I can’t wait to see how good cause.” Guests at the event Daniel) checked off all of those PSK Supermarkets said, “The this one will fare and after the had an opportunity to gamble boxes and are eager to add the store itself was successful, al- personal viewing, and seeing with play money, redeemable for By Kevin Gallagher Pathmark store to their other 12 though the corporate entity the community turnout, I real- raffle tickets for chances to win stores in the metro area. wasn’t, and we think that the ly think this could be the start Broadway tickets, jewelry, gift Hello everyone and in The 49,000 square foot store demographics here really align of something good for PSK and cards and more. The event fits case you haven’t heard…..it’s will be in the exact spot where with what the Pathmark brand Allegiance. with Krasdale’s ongoing mission baaack…..Pathmark!! One of the original Pathmark was be- stands for.” “Shoppers will soon Krasdale Foods held its in- to nurture young women and the big venerable retailers of the fore being closed by the A&P enjoy low grocery prices, friend- augural annual ladies luncheon help them develop into success- metro New York landscape has bankruptcy in 2015. Allegiance ly faces, plenty of parking and and casino event at The Chart ful businesswomen. For the past emerged again on Albany Ave- Retail Services and PSK Su- community ties that made the House restaurant in Weehawkin, three years, Krasdale has par- nue in the East Flatbush section permarkets will be putting the company great,” the grocer an- NJ in concert with International ticipated in Her Honor, a men- of Brooklyn. As many of you are name back in the neighborhood. nounced on its website. “The Women’s Day to honor its female toring program that offers paid aware, Allegiance Retail Ser- “When people walk into this store on Albany Avenue will store owners and businesswom- internships to seniors at White vices acquired the intellectual store, it’s going to be like going feature value, competitive, low en in the retail food industry. Plains High School. By work- property of Pathmark, including back in time, like, ‘Wow I re- grocery prices, a fully remodeled The event brought together ing with mentors at the compa- the Pathmark logo, trademarks, member this’ and that’s what the store and a large parking lot. The store owners, store employees, ny’s corporate headquarters, the brand name, pathmark.com do- return of Pathmark is all about”, store will have the exact look and suppliers and vendors for a fun young women learn the skills to main, and all other intellectual said John Derderian, president feel from the iconic Pathmark and charitable afternoon. All See METRO BEAT property associated with the of Allegiance Retail Services. brand that shoppers remember proceeds from the event went on page 31 Canada Dry Proud to provide customers and consumers alike with the best tasting beverages.

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www.best-met.com April 2019 FOOD TRADE NEWS | 9 C&S Wholesale Grocers Welcomes Independents To Mohegan Sun In Uncasville, CT For Spring/Summer Selling Show

C&S Wholesale Grocers held its spring/summer selling show last month at Mohegan Sun In Uncasville, CT. Wel- coming show-goers to the “We Feed America From Farm To Tom Tracy (l) of Ruprecht Company smiles for a photo with Table, It Takes Us All” themed show are (l-r) Kevin Ruddy, (2nd from l-r) Gail Daha, Jamie Beayon, Nancy Neri and Tony Checking out the show deals for Gristede’s are Anthony Amy Crawford and Frank Puleo, all with C&S. Neri, all with Gregg’s Market. Rescinito, Carlos Perez and Luigi Mucciacciaro.

The Stop and Compare Supermarket group shot includes Here we have (l-r) Chris Goss, Sean Walsh and Tyler Monnat, (l-r) Sindaili Garcia, Henry Correa, Delfis Tavarez, Rafael Ur- Efrain Ribot (l) of Sickles Market is joined here by Bob Fried- DUMAC; Diane Willix and Brian Willix, Alex Bay Big M. bino, Marc Iannotti, Carlos Garcia and Guillermo Fernandez. man (c) of Smithfield and Dwight Guss of C&S.

These fine folks are (l-r) Joe Torres, The Food Squad Distrib- All smiles for our camera are (l-r) Drew Sander and Mike utorship; Estela Guillermo, Tajin; Ed Torres, The Food Squad Papeleo of C&S and Sugardale Foods’ Bill Helmstetter and Making sure all runs smoothly at the show are C&S’s Car- Distributorship; John Lorenzo, H&M International Sales; Bernie Mueller. men Addeo (l) and Mike Tarloff. Chris Aguila, C&S and Jay Garcia, MexiLink.

These folks are (l-r) Paul Timlin, Allen Harim Foods; Ray Grabowski, Northeast Food Marketing; Bridget Grabowski, Davidson Specialty Foods; Dave Meyer, Perishable Consul- Deb Kultzow (c) of RDD Associates chats with Chris Morelli Taking care of business at the show for Crossmark are Dan tants; Bill Meyer and Jason Meyer, Northeast Food Market- (l) and Rebekah Morelli of Elk County Foods. Weinstein (l) and Jay Bern. ing; and Rocky Anzalone, Plenus Group.

Carmen Addeo (c) of C&S welcomes Len D’Andrea (l) of Rick Bendlin (l) of Refresco is joined here by Phil Nardella Country Home Bakers and Allan Pronovost of BCI to the Jay King (2nd from r) of Sigma is joined here by RDD Associ- (c) and Mike Kowgios, both with JOH. show. ates’ (l-r) Bill Cown, Nick Schiralli and Mayra Perez.

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www.best-met.com April 2019 FOOD TRADE NEWS | 11 ssssssssssssssssssssssssssssss Your Complete Source for Organic Italian TAKING STOCK From page 6 Those who know Sankaran describe him as extremely intelligent with strong negotiating skills and the ability to work well with both his associates and with the trade (he served as PepsiCo’s chief commercial officer for the past four years). But one silo Sankaran has not yet entered is food retailing. And despite his many years of dealing with the nation’s top retailers, Sankaran has never sat on that side of the desk. It won’t be an easy conversion – retail, particularly food retail, is as “real time” as it gets. It’s visceral, seemingly endless, with successes fleeting because it’s so fluid. Dealing with Albert- sons’ internal issues might seem somewhat parallel to what Sankaran was used to at Pepsi; however the on the field issues are much different. The company operates 2,300 supermarkets under nearly 20 different banners. Within each market are hundreds of individual trading areas with different competitors – some established, some emerging – operating with diverse retail styles. There will be unions to deal with and more than 20 distribution centers and 20 manufacturing plants to oversee. And beyond that, it goes back to instinct. Will Sankaran be able to reinvent himself as a merchant/ operator? And will he be able to take a company, which has unsuccessfully tried twice, into the public arena? Donald is betting strongly that Sankaran is the right man for the job. And he’s well aware that “learning retail” is Sankaran’s most important pri- ority. As such, he will be spending a lot of time with his successor to accel- erate that curve. And Donald himself isn’t going to Tahiti anytime soon, either. He’ll be staying on as co-chairman (along with Cerberus executive Len Laufer), add- ing that he’ll be nearly as busy as he’s been since he got to Boise 13 months ago (the irony is that with Donald’s constant travel schedule visiting 100% Italian • USDA Organic • NON-GMO • Shelf Stable • Ready to Display Albertsons’ 14 divisions, he didn’t spend the majority of his time at com- pany’s headquarters). While this indeed might be Jim Donald’s last full-time pit stop, don’t NEW expect him to retire anytime soon. There will be board directorship oppor- tunities to consider (if he desires) and I’m certain he’ll continue his very successful sidebar career as a speaker. It’s something he loves to do, is very good at and as Jim has joked, “the margins are much better than running a supermarket.” And certainly there must be a few hundred people in America who hav- en’t yet heard his fish story.

Six Months Later, Retailers Upset By UNFI’s Poor Execution, Communication “It gets late early here” - Yogi Berra Six months is usually not a long time when measuring a business cycle, but in the case of United Natural Foods, Inc. (UNFI), that span seems like an eternity, especially to many of the wholesaler’s independent retailers and its own associates who have witnessed what one independent retail customer called a “meltdown” in the period following UNFI’s acquisition of Supervalu for $2.9 billion last October. Some of challenges are obvious: poor earnings results; a share price that has plummeted from $45.14 per share on July 24 (the day before the Supervalu acquisition was announced) to its current trading price of $13.62 per share; its $4 billion debt load (most of which it inherited from SVU); and a major executional breakdown at its new Harrisburg, PA DC when it opened in October that created low service levels throughout the holiday season adversely impacting many retailer’s sales during their most Product of Italy • USDA Organic • NON-GMO • BPA FREE • Easy Pour Spout important operating period. And when measuring the intangible parts of its newly blended business, ® the situation is equally as bad, perhaps worse. We talked to about a half “Trust Your Family With Our Family” dozen independent retailers who are UNFI Eastern region customers and who are serviced from two UNFI warehouses in (problematic) Harrisburg and in Mechanicsville, VA. All were highly critical of the way UNFI has handled the transition. All were also skeptical as to whether UNFI can successfully convert from a Cento Fine Foods • www.cento.com • ©2019 TAKING STOCK continues on page 26

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RDD Associates, LLC 930 Riverview Drive, Suite 400 Totowa, NJ 07512 973-812-8070 www.rddassociates.com To learn more about how RDD can customize a winning perishables solution for your vital and valuable brand, please visit our website or contact Bob Weinmann, SVP - Marketing & Strategy at 973-812-8070. For Deli/Fresh Foods inquiries, contact Mike Huberfeld, Director - Fresh Foods.

www.best-met.com April 2019 FOOD TRADE NEWS | 13 The New Jersey Food Council’s Annual ‘Night Of Distinction’ In Somerset, NJ Honors Industry Executives

The New Jersey Food Council’s annual “Night of Distinction” was held last month at The Palace at Somerset in Somerset, NJ. Among the attendees were (l-r) Mike Biase of Mission who chaired the event; honorees Joe Parisi of Kings Food Markets, Donna Zambo of Allegiance Retail Services, Herman Dobson of Chase Enjoying the Night of Distinction from Kings Food Markets Donna Banks-Ficcio (2nd from r) smiles for a photo with Bank and Jeff Brown of Brown’s ShopRites; NJFC president Linda are (l-r) Joe Parisi, Giannie Napoli, Gianna Parisi, Joe Parisi, (l-r) Pedro Aponte of Clem Snacks and Sal DeLio and Bill Doherty; and NJFC chairman Richard Saker of Saker ShopRites. and Gina Parisi. Schlosky of Utz.

All smiles for the Food Trade News camera are (l-r) Phil Sca- duto, Food Circus Supermarkets; Linda Doherty, NJFC; Don- Joe Parisi (c) of Kings Food Markets is flanked in this photo na Zambo, Allegiance Retail Services; Jesse Scaduto Reilly, This Brown’s ShopRites family photo features (l-r) Josh, by former co-workers from Wakefern Jeff Mayo (l) and Chris Tony Abbatemarco, Lou Scaduto and Louis Scaduto III, all Scott, Jeff and Sandy Brown. Lane. with Food Circus Supermarkets.

Linda Doherty (c) of NJFC welcomes these folks from Lib- This foursome features (l-r) Ron H. Murphy and Ron S. Mur- Making their way to The Palace at Somerset for the NJFC erty Coca-Cola to the Night of Distinction (l-r) Steven Craig, phy of Murphy’s Markets; Michael Rothwell of Pennington event are Joe Parisi (l) and Bob and Judy Spires of Kings Dayra Marin, Ernest Benson and Matt Pensavalle. Quality Market and John Wachter of Murphy’s Markets Food Markets.

These fine folks are (l-r) Joe Pagano, Inserra Supermarkets; Jason Read (l) of Wawa smiles for a photo with Kim Gray of David Maniaci (l) of Nicholas Markets chats with Donna Mike Murphy, Quick Chek; Debbie Pregiato, Advantage; Acme Markets. Zambo (c) and John Derderian of Allegiance Retail Services. Howie Kent, Krasdale; and Mike Biase, Mission.

Paul Brauer (l) of Krasdale is well Brown’s ShopRites represented at is joined here by the event by Den- Fran Dolan (c) and nis Hickey (l) and Shane Hartman of Mike King. Herr Foods. These industry vets are (l-r) Jim Ostling, Bimbo Bakeries; Linda Doherty, NJFC; Mike Murphy, Quick Chek; David Ma- niaci, Nicholas Markets; and Ernest Benson, Liberty Coca Cola.

14 | FOOD TRADE NEWS April 2019 www.best-met.com Business relationships work best when they are rooted in mutual respect. Not strict contracts. TRUST #WeAreKrasdale IS PARAMOUNT

krasdale @KrasdaleFoods krasdalefoods.com Contact Dennis Wallin • EVP, Business Development • 800.248.5727 x5301

www.best-met.com April 2019 FOOD TRADE NEWS | 15 Sales Of Specialty Foods Continue To Grow, Reaching $140B In 2017, Outpacing Overall Food Sales Growth By Karen Fernandez CBD-EVERYTHING Specialty Foods Editor If you haven’t been living under a rock, then there’s no need to tell you that cannabidiol Specialty foods continues to be one of the (CBD) is one of, if not the biggest, trend this fastest growing segments in the industry, with year in the retail sector. With the legalization total sales of $140.3 billion in 2017 and no of hemp as an agricultural commodity and its signs of slowing down. According to the Spe- declassification as a controlled substance in the cialty Food Association’s annual “State of the 2018 Farm Bill, it seems to be all systems go for Specialty Food Industry 2018” report released the CBD producers who had been in a hold- last June, specialty food sales outpaced the ing pattern waiting for this legislation to pass. growth of all food at retail – up 12.9 percent While the signing of the bill just took place this vs. 1.4 percent. Between 2015 and 2017, sales past December, growers have been preparing in in brick-and-mortar retailers grew by 10.7 anticipation of it. According to the 2018 U.S. percent, was up by 12.8 percent in foodservice Hemp Crop Report from Washington-based channels, and increased by 20.9 percent in on- Vote Hemp, the nation’s leading grassroots line sales. The breakdown of consumers based hemp advocacy organization, the number of on generation show that iGens (ages 18-23) are hemp acres in the United States more than tri- particularly engaged in shopping for specialty pled to 78,176 acres in 2018 from 25,713 acres foods, with 79 percent buying in the segment. in 2017. “We’ve seen hemp cultivation signifi- A large portion of the other generations were cantly expand in the U.S. in 2018, with over tri- revealed to be specialty food shoppers as well: ple the number of acres planted in hemp com- 67 percent of Millennials (ages 24-41), 65 per- pared to last year and the addition of four more cent of Gen Xers (ages 42-53) and 60 percent states with hemp programs,” said Eric Steens- of Baby Boomers (ages 54-72). The takeaway is tra, president of Vote Hemp. “Now that we have that this segment is only poised to get bigger lifted federal prohibition on hemp farming, it’s as shoppers’ tastes become diversified through time to invest our energy in expanding hemp increased exposure to variety and availability. cultivation and the market for hemp products We’ve highlighted three trends that we expect across the country so that all can reap the ben- to be at the forefront in the specialty foods are- efits of this versatile, historic American crop.” na for the next couple of years, if not more: See SPECIALTY FOODS on page 18

16 | FOOD TRADE NEWS April 2019 www.best-met.com www.best-met.com April 2019 FOOD TRADE NEWS | 17 SPECIALTY FOODS Plant-Based Holds Strong Against From page 16 The Meat And Dairy Birthers Although the meat and dairy industries To date, the following 41 states have legalized indus- have drawn the battle lines against their trial hemp cultivation: Alabama, Alaska, Arizona, plant-based counterparts, it looks Arkansas, California, Colorado, Connecticut, Dela- like the latter are building strength ware, Florida, Hawaii, Illinois, Indiana, Kansas, Ken- in numbers and are ready to stand tucky, Maine, Maryland, Massachusetts, Michigan, their ground. Many consumers Minnesota, Missouri, Montana, Nebraska, Nevada, have become concerned not only New Jersey, New Mexico, New York, North Carolina, with more healthful eating but North Dakota, Oklahoma, Oregon, Pennsylvania, also with the impact of their carbon Rhode Island, South Carolina, Tennessee, Utah, Ver- footprint and as a result, the plant- mont, Virginia, Washington, West Virginia, Wiscon- based food industry has not just de- sin, and Wyoming. And, according to a recent study veloped solid roots but is exponen- conducted by High Yield Insights, a company that tially growing due to the increasing specializes in market research and reporting on the demand for meat and dairy alternatives cannabis industry, around 40 percent of U.S. adults among shoppers. According to the Dairy age 21 and over indicated a willingness to explore Farmers of America (DFA), the sales of CBD under the right conditions. “We are seeing traditional dairy milk dropped about many consumers looking to incorporate CBD into $1.1 billion last year from $14.7 billion their wellness regimen,” said Mike Luce, co-founder in 2017 to $13.1 billion. Non-dairy of High Yield Insights and a 20-year veteran in con- milks, on the other hand, are on sumer insights and market research. “Consumers the rise. A Mintel report from last previously unfamiliar with CBD are rapidly showing year revealed a 62 percent growth interest. Now that the federal government is finally in non-dairy U.S. milk sales from taking steps to clear up the hazy legal picture, people 2012 to 2017, reaching an estimat- see CBD as an entry point to the therapeutic ben- ed $2.1 billion in sales that year and efits of cannabis.” With numbers like that, CBD is according to the market research firm certainly here to stay, as long as the FDA (which is Markets and Markets, the global dairy holding a public hearing next month to discuss de- alternatives market is forecasted to reach veloping a regulatory framework for the use of CBD $19.5 billion by 2020 and the global plant- in consumer products, including foods and bever- ages) doesn’t decide to create too many roadblocks. See SPECIALTY FOODS on page 20

Fresh Food Made Easy

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18 | FOOD TRADE NEWS April 2019 www.best-met.com ® the Best the

Select GIVING BACK At C&S we strive to participate in our communities as an engaged, values-driven corporate citizen. Our community involvement is led by our principles, driven by purpose, and oriented towards outcomes. We are an engaged corporate citizen supporting causes that positively impact our communities.

Your Success is Part of Everything We Do! Questions? Contact your C&S Sales Representative or call 1.800.872.5018 or visit www.cswg.com

www.best-met.com April 2019 FOOD TRADE NEWS | 19 it has officially become mainstream. The movement has ing consumer goods products (FMCG) — items such SPECIALTY FOODS grown so much in popularity that the Plant Based Foods as food, toiletries and other consumables — in 2018 From page 18 Association (PBFA) has launched a plant-based NSF In- and it predicts that the sustainability market will reach based protein market is expected to hit $5 billion. Be- ternational certification and logo to make identification $150 billion by 2021. It also reported that conventional yond Burger’s pea protein based patties can be found in of products easier for consumers while shopping. “The product sales have dropped whereas sustainable prod- many mainstream retailers, Nestlé is developing a meat- launch of the Certified Plant Based seal is an exciting uct sales have grown 20 percent since 2014. And while less product called the Awesome Burger that it hopes to next step for the fast-growing and innovative plant- Nielsen found that only 34 percent of Baby Boomers release by the end of 2019 and the darling of this year’s based foods industry,” said Michele Simon, PBFA’s ex- are altering their buying habits with the environment Consumer Technology Association’s CES show, Impos- ecutive director. “As consumers are looking to purchase in mind, 75 percent of Millennials are making the con- sible Foods, hopes to launch a retail version of its much- more plant-based options, this new seal ensures confi- scious decision to shop more eco-friendly. Retailers buzzed about plant-based burger also by the fourth dence in what plant-based means.” such as Ahold Delhaize and Kroger have both already quarter of 2019. Even Burger King has hopped onto this pledged to eliminate all single-use plastic bags by 2025. trend with its Impossible Foods partnership resulting in Not Just A Pretty Picture - Global CPG company Nestlé, also with a goal to make a meatless version of its flagship Whopper now being Sustainability In Packaging 100% of its packaging recyclable or reusable by 2025, piloted at 59 locations in the St. Louis area and when According to an article published by Nielsen last has partnered with Danimer Scientific (a leading devel- the fast food restaurants jump on something, you know December, shoppers spent $128.5 billion on fast-mov- oper/manufacturer of biodegradeable plastic products) to develop biodegradeable water bottles using an effec- tive biodegradable alternative to petrochemical plas- tics. Not only is this trend being noted by retailers and manufacturers, but the states are actively addressing the sustainability issue as well. With Maryland poised to be the first state to ban foam cups and food containers and New York expected to ban single-used plastics statewide (it will be the second state to do so after California), ex- pect more states to follow closely in their footsteps with environmentally safe initiatives meant to reduce waste. While price is the biggest deterrent to companies mak- ing the switch, expect “Reduce, Reuse, and Recycle” to become the mantra when it comes to food and beverage packaging design as mounting pressures from shoppers will eventually force several manufacturers to cave.

20 | FOOD TRADE NEWS April 2019 www.best-met.com Krasdale Welcomes Vendors, Customers To Bakery Seminar Held At Marriott LaGuardia In E. Elmhurst, NY

Krasdale Foods held a bakery seminar for its customers and vendors last month at the Marriott LaGuardia in E. El- mhurst, NY. Among those on hand for the informative sem- inars and to check out the newest in bakery products were This photo features (l-r): Ramon Rodriguez, Michael King, (l-r): Gary Turpak, Krasdale Foods; Claudia Tavares, Victor Roy Cohen and Carlos Padilla, Krasdale Foods; Gus Leb- Batista and Henry Fernandez, C-Town; and Ramon Rodri- iak, Alpha 1 Marketing; and Frank McHugh, Frank’s Market Cindy Olsen (c) of World Wide Foods is joined here by Jim guez, Krasdale Foods. Fresh. Hopkins (l) and Gary Turpak, both with Krasdale Foods.

These fine folks are (l-r) Joe Rivera, JJ Communications; Edel Martin, Cidrines; Gary Turpak, Krasdale Foods; Rodolfo This trio comprises John Borzumato (l) of Krasdale Foods, Cordero, JJ Communications; and Carlos Padila, Krasdale Andrea Wexler (c) of AJ Letizio is flanked in this photo by Pat Henry Cepeda (c) of C-Town and Gus Lebiak of Alpha 1 Mar- Foods. Locurto (l) and Tom Vonholt, Pat’s Market Place. keting.

said working with their customers mer’s go-to spot for not only meat the brand’s first foray into fashion. chef and lifestyle brand expert; is all about trust and giving the and cheese, but also deli-inspired From a “Hot Dog Life” t-shirt and IDDBA president and CEO Mike customer something they didn’t fashion and fun. The store will vintage lunch boxes to custom hot Eardley; Barb Stuckey, Mattson; Soup previously know, providing an feature several Instagram-wor- dog bathing suits and Dietz Nuts and actor Rob Lowe. The Expert to Nutz expertise. The day concluded with thy photo ops and custom inter- boxers, most of the items will be Neighborhood, What’s in Store, From page 4 Dr. Carlo Pratesi from the Uni- active experiences including a available in the store and online. Live and the New Product Show- versita di Roma and Dr. Stanton bodega, an urban backyard and This custom shopping experience case will once again bring together discussing what’s on the horizon: art installations created by local will mark Dietz & Watson’s inau- San Francisco; for me there’s no innovative ideas and aspirational trends coming from Europe. Of Philadelphia artists Gloss Black gural step in its evolution toward contest between an Italian hoagie merchandising to retail dairy, deli vs. chicken pesto. The three top course, the subject of Millenni- and Kyle Earl. Delishop’s official becoming a lifestyle brand. The als crept into the conversation; grand opening is May 3 with an brand will also be hosting vari- and bakery departments. See you restaurant cuisines in the USA are at the show! predictably Italian, Mexican and they’re changing everything not invite-only ribbon cutting. To ous events throughout its three- only with what they eat but also keep the festivities going, on May month run. From bi-weekly tast- Birthday shout outs for the Chinese. After the most outra- showery month of April go to: geously fabulous lunch prepared in how we hire them. Overall, 4 the brand will host America’s ing and family nights to unique Lou Eni Jr., Dietz & Watson; by members of the Italian Chef this event was a home run! SJU favorite mascot, Gritty, who will holiday celebrations, Hump Day Academy of Food Marketing is al- Ed Herr, Herr Foods; Theresa Association – including pasta in be giving away his custom “Gritty Hoagie Flights and Have a Pair ready planning next year’s event. Sauce” (Dietz & Watson sriracha (on select Thursdays, Dietz & Lowden, JOH Produce; Dominic a cream sauce tossed in wheels of Noticeably absent were the stu- aioli) to all customers who come Watson is partnering with local Botto, Botto’s Sausage; Charlie Reggiano Parmigiano with shaved dents who were on spring break, out to Delishop during his ap- brewing companies to offer bev- truffles on top – a retailer panel Poletti, retired from Acosta; Jack but who would have benefitted pearance. “For our 80th anniver- erage pairings with its meat and Foti, Rosa Foods; Ron Benjamin, on in-store customer experience tremendously from this summit. sary, we wanted to do something cheese offering). Keep it here for was held. The panel, moderated The Star Companies; Mike Sher- Hopefully they will participate in special for our neighbors,” said further specifics on this unique lock, Wawa; and Scott Vicari, by SJU professor George Latel- 2020. Bravo, St. Joe’s! Lauren Eni, VP of brand strategy celebration. la, featured Bill Mignucci of Di PromoPoint Marketing. Buon Fresh off its launch of Dietz at Dietz & Watson. “Philly plays The International Dairy Deli compleanno a tutti! Bruno Bros., Arthur Goncalves Nuts, Dietz & Watson, the iconic such a key role in who we are Bakery Association (IDDBA) has As in many past years, Passover of Balducci’s, Will Magistrelli of Philadelphia deli products manu- as a brand. We’ve been a part of announced the lineup of speakers Wakefern and Mike Cadoux of facturer, is celebrating its 80th an- this community for four genera- for this year’s at IDDBA 19 being and Easter fall in the same week Kabaq 3D Technologies. Mignuc- niversary with a new, limited time tions, since 1939, and this pop-up held in Orlando June 2-4, includ- this year. To our readers celebrat- ci offered some wise words to the only pop-up shop experience seemed like the perfect opportu- ing: Christina Tosi of Milk Bar; ing during that time, enjoy the group: “We’re here to serve, not to called Delishop. Scheduled to nity to celebrate with the people author Seth Godin, retired from holidays with family and friends. be served.” When taking care of run from May 1 to July 28 at 5th of the city we consider part of our Yahoo; Kevin Ryan, Malachite the Di Bruno’s customer, he add- and South Streets, one of Philly’s family.” For Delishop, the brand Strategy & Research; IDDBA Quote of the month: “In a hyperac- ed that it’s all about “people, prod- liveliest areas, the branded pop- has created a collection of deli-in- chair Rick Findlay; actor Michael tive world, stillness is the deepest uct and presentation.” Goncalves up is poised to become this sum- spired fashion and gear, marking J. Fox; Laila Ali, boxing icon, rebellion.” Donna D’Cruz www.best-met.com April 2019 FOOD TRADE NEWS | 21 could take us in to the future. When I talked with our ing those now - is that we will take several aisles out of people about the filing, I talked about the fact that we the center of the store and really put that space into the had a good business, but a bad balance sheet. Entering fresh side of the business, so that customers can have the the Chapter 11 reorganization process was not an easy things that they want. decision for us, but we did it voluntarily. We knew we were getting pushed in that direction and the level of Food Trade News: At what level or hard number have debt that we accumulated under past ownership was no you been able to increase your cap-ex? longer sustainable in today’s competitive environment. & We were at the point where we could not do the things Frank Curci: That is a little bit hard to answer because that we needed to do to sustain and grow our business. last year during the reorganization process, we had al- We had to address our balance sheet and that is what we most no cap-ex program. We have a cap-ex program were able to accomplish during the bankruptcy. The big- now that will be right up there with the industry stan- gest thing was that we reduced our debt level from $700 dards. We’ll be able to spend $40-$50 million, in the past Q million down to under $400 million, with a reduction we were spending maybe one half of that. And of course, A in interest cost of approximately $40 million. That was during the last year and a half we were spending almost the most important component of our ability to move nothing. We will be able to do 10 to 15 major remodels forward. a year. One thing about upstate New York is that it is a low growth market, quite frankly. When we compare Food Trade News: What have you been able to do with our cap-ex programs to others in the industry, there is that flexibility, with that freedom? You had the plan, almost no new square footage growth in our market. So, With Frank Curci you couldn’t really accelerate it to overdrive, because you are not going to see a lot of ground-up new stores you were financially handicapped. So, what are some of for us and those are the most expensive things to do. Over the past 12 years, Tops Friendly Markets, a strong the things that you are able to do now that you have re- When we look at our capital program, we really think presence in the Western New York market since its founding gained that flexibility? that this is a good level of spending, it is one that we in 1962, has experienced some challenging times. The region- can handle as an organization. We have this fresh format al chain was acquired by Morgan Stanley Private Equity in Frank Curci: Now that we have the financial flexibility that we built a couple of years ago, Orchard Fresh, that 2007, then sold back to a management group led by CEO to move forward, we have also reduced our cost of doing is a totally different customer base for us. We learned Frank Curci in 2013. Curci has served as the company’s CEO business in several other areas. Now we can go about a lot about prepared foods and what the modern cus- since 2007. Needing to reduce debt and restructure other as- rebuilding our business in the way we know we need to tomer wants with this format. We opened the Orchard in response to the changing consumer. For instance, we Fresh store less than two miles from an existing really pects of its organization, Tops filed for Chapter 11 protec- weren’t able to put money into our stores like we wanted good traditional Tops store, and we found that almost tion in February 2018; nine months later it emerged from to do. Historically, our stores are pretty well invested in, all of the store’s customers did not come from our store, bankruptcy as a company better equipped to compete in its but the last couple of years we really didn’t have the fi- they came from the rest of the market. They came from current market landscape which includes 163 stores in New nancial flexibility to continue that investment. And, you competition and they came to us because we are fulfill- York, Pennsylvania and Vermont and. We recently visited know, I have been in this business a long time, and the ing a need for them for healthy, natural, prepared foods. Curci to discuss how Tops is faring post-bankruptcy. changes that we have seen in our customer preferences Items that they quite frankly couldn’t get in a more tra- over the past couple of years is the greatest that I have ditional supermarket setting. Food Trade News: Since coming out of bankruptcy, in seen in a long time. We know that our stores have to addition to during the bankruptcy period, what changes reflect those preferences. The changes I’m talking about Food Trade News: And now that the company’s foun- have you and your team made, important changes, to really revolve around perishable offerings, more meal dation has been restored is there any possibility that you better ensure Tops’ long-term stability and success? solutions, grab and go. We needed to have customers will open more of those or other related type formats, be able to come into our stores and fulfill their needs for offset formats? Frank Curci: Let me approach it this way. When we that night’s meal and that meant expanding the perish- entered the bankruptcy process we knew that the posi- able side of our stores. So, our delis, bakeries and meat Frank Curci: That’s an interesting question. The short tive thing we had going for us was that we have a strong departments had to be able to meet the challenge of answer is yes. What we see as a real opportunity for us underlying business. Our network of stores is good, we providing meal solutions for people. When we go into is to take what we have learned in that format and in- were happy with our management team and our ded- our stores now, we really need to spend a little bit more corporate it into a more traditional supermarket com- icated and passionate associates. We thought that our money to expand the fresh side of the business, really pany so that you have a combination of the groceries go-to-market strategy was a definite differentiator and at the expense of center store. What you will see in our one that resonated with the upstate New York custom- new stores, and we have eight to ten stores that will be See Tops Markets er base. What we did not have was a balance sheet that remodeled this year - we are right in the process of start- on page 23

FRANK CURCI HAS SERVED AS CHIEF EXECUTIVE was chief executive officer of Tops Markets, LLC and held Kaleida Health. He is also a member of the board of officer and director of Tops Markets, LLC since December senior leadership positions at the Bi-Lo chain in South directors of Topco Holdings, Inc., a buying cooperative. 2007 and as chairman of the board since December 1, Carolina and Edwards Super Food stores on the East Aside from business, his hobbies include running and 2013. Coast. golf. Curci has more than 40 years of experience in the su- Curci also spent nine years from 1987 to 1995 at Curci resides in Clarence, NY with his wife, Robin. permarket industry. From April 2005 to September 2006, Mayfair Supermarkets, which operated as Foodtown in They have three grown children and two grandchildren. he served as chief operating officer for Alabama-based New Jersey. Tops Markets LLC, is headquartered in Williamsville, Southern Family Markets, a subsidiary of C&S, where he He is a certified public accountant and holds an NY and operates 163 full-service supermarkets – 158 led the start-up of two chains emphasizing the neigh- M.B.A. and a B.A. from Rutgers University. company-owned and five franchise locations under the borhood grocery store format. From June 2004 to March In addition to his career, Mr. Curci serves on the Tops banner. With more than 14,000 associates, Tops is 2005, he served as senior vice president of operations boards of the Buffalo Niagara Partnership, The Food In- a leading full-service grocery retailer in upstate New York, at Farmer Jack, a supermarket chain based in Michigan. dustry Alliance of New York State, the Food Marketing northern Pennsylvania and western Vermont. While at Koninklijke Ahold N.V. from 1995 to 2003, Curci Institute, and is Chairman of the Board of Directors of

22 | FOOD TRADE NEWS April 2019 www.best-met.com value to the customer. If we simplify our promotional program and cut out 20 to 30 percent of the types of promotions that we have every week, our store teams are going to have more time to prepare the store for the customer, give service to the customer, answer ques- tions, be able to guide them through our store. It is a change that we are pretty excited about. As we were going through this reorganization it became clear to us that we were becoming harder to deal with in terms of people understanding what we were doing, but it wasn’t just the customers, it was our vendor community and it was our own staff here in the office who were producing plans. We are trying to get through that process to make everything easier.

Food Trade News: You mentioned that you are going to simplify some merchandising, inferring looking at items, what fits better, what may have a better turn result because of simplicity, efficiency. So, since basically half of our readership consists of the supplier community, what will vendors see that is different? The Tops Markets executive team includes (l-r) Jack Barrett, EVP of HR; Ron Ferri, EVP of Operations; Frank Curci, Chairman and CEO; John Persons, President and COO; and David Langless, CFO. Frank Curci: The challenge is how do we revamp our whole program so that it is not only better for custom- From page 22 ple of years that has been an extremely big challenge for ers, but better for vendors. We are going to deal with vendors on a more strategic basis. Instead of our catego- that people want and the fresh side of the business that us is the proliferation of formats like Aldi and Walmart, ry teams fighting to try to get items to put in the ad and may have been a little bit behind the times and a little bit which have extremely low prices, a lot of emphasis on support those items every week, now we are going to lacking in terms of what the modern millennial custom- own brands and are a very easy shop for people who build programs for the long run that could be relevant er wants. So, you could see more of a combination there are just looking for low prices. We do have a strong own in terms of going forward. brand offering, we do have a promotional format, but trying to match Walmart on price is very difficult for a Food Trade News: What remain Tops’ biggest chal- company like us. In fact, it is impossible. So, we have to lenges? Its biggest opportunities? do other things to attract people and those other things The vendors should know that we are now have to be around experience and solutions. going to be looking at programs for the long Frank Curci: I think our biggest challenge is, and this is probably pretty obvious, that we are a medium sized Food Trade News: Now that the company has been run, to drive their business in the long run. We stabilized, you know what the priorities are, you have a company. I like our size, I like that we are small enough are not going to be looking to nickel and dime that we can understand our stores but still big enough vision of what you need to do, can you describe to our to have some scale. But we compete in upstate New York readers and your customers, although they won’t be “on every little individual thing that we do. We with some of the best and biggest in the business. When reading this, what they might see that is different from you look at our competition, it is Walmart, Wegmans say, a year ago? want to build advertising programs, we want to and Aldi. Those are the big three that we compete with. Frank Curci: build pricing programs that are going to build The way we compete with them is by being different. There are a couple of differences that we We are a promotional retailer. None of those three are are really going to concentrate on in the coming year. volume for both of us over the long run. We are really promotional retailers, they are more everyday low We know that we have to be an easy place for people to still a promotional retailer, we will still have price. But they are much bigger companies with much shop, and our promotional plan in the past tended to get greater resources in an area that doesn’t have a lot of a little bit too complicated and it was complex enough promotions, but they will be more thought out.” growth, so margins are always tight in our business and that people started to be a bit confused. So we are going top line growth is always difficult in this type of envi- to be more straight-forward in our pricing. Custom- Frank Curci, CEO ronment. We have had investment by Aldi in terms of ers will see everyday prices come down, our ads will their remodel program and Walmart and Wegmans, be cleaner, there will be fewer hoops for the customer while they may not be opening up a lot of new stores, to jump through, more about specific price points on are still formidable competitors, and competing with known value items that they will be able to come in and to customers. We are going to try and build promotions them is always a challenge. They have more resources get every day. We are trying to make ourselves a little bit and displays that help customers have a solution, a meal and we know that in order to compete with them we more efficient in how we deliver value to our customers. solution, instead of just items that people want us to have to be different, we have to be nimble, we have to That will have the benefit of making us a little bit more push. It is going to be more of a thoughtful program, it make quick decisions, we have to keep our stores fresh efficient here in the office. It will make our store teams is going to be a program that we can build loyalty over and up-to-date, we have to do things that they are not be a little bit more efficient in how they display prod- a longer period of time. There will be more longer-term willing to do and it is not easy in the long run. ucts and programs and make it easier for our customers TPRs, lower shelf prices, those kinds of things where ev- to understand. We are revamping the way we bring our erybody can depend on a little bit more normal volume Food Trade News: So, I think that you have answered promotions to the market. than just promoted volume. the back end of the question – those are your biggest Food Trade News: opportunities. The challenges lie in front of you, you see Are you also implying that the actu- Food Trade News: If I were a typical vendor, give me a them, facing powerful regional or national chains, dif- al associates, the labor in the stores, might be deployed take away that would encourage me beyond the fact that ferent formats. You have to clearly delineate what that differently, a little bit more embracing directly with that you are going to be deploying cap-ex, you are putting separation is and at the same time be very good at it. customer? more into the finished product, theoretically growing Frank Curci: Absolutely. Right now, too much of our Frank Curci: That is absolutely true. I’d say that the See Tops Markets biggest change in our marketplace over these past cou- store teams’ time is spent on changing prices, building weekly displays, doing things that really don’t deliver on page 24 www.best-met.com April 2019 FOOD TRADE NEWS | 23 Tops Markets war of us asking for money for various things and them is the largest hospital system here. It is the largest hos- From page 23 wanting to just do an overall price program. I under- pital system in western New York. The funny thing is, stand both sides of that. The problem for us is that we although it is a totally different business, it is similar in sales. What is going to make me feel good about my take don’t want to be at a disadvantage against other retailers a lot of ways because they need scale, they need to con- away experience with the new Tops? by not asking for the right things. What we would like to tinue to grow, they have almost as many employees as do is develop a program with them where they are trans- we have. We have 14,000 employees. They have 11,000. Frank Curci: The vendors should know that we are parent with us about what the funding levels are because There are a lot of the same issues. So, you are right, I do now going to be looking at programs for the long run, we want our fair share of funding. We are willing to not get to see a lot of different aspects of the economy here. to drive their business in the long run. We are not going ask for every individual item as long as we have the un- I will tell you this, the economy is as good as it has ever to be looking to nickel and dime on every little indi- derstanding that we are going to be treated fairly with been here in upstate New York. I think from the gover- vidual thing that we do. We want to build advertising vendors against our competition. We just want our fair nor to everybody in Albany, they have paid more atten- programs, we want to build pricing programs that are share. We are willing to take it in a nice steady way and tion to upstate New York then they have in a long time going to build volume for both of us over the long run. we will deploy it the way we think it should be deployed. and that has been good for us. There is actually some We are still a promotional retailer, we will still have pro- Too often we are in a position where we have to go for growth here. The growth means that the negative has motions, but they will be more thought out. They will extras if we feel like we are not getting a fair shake from fallen to almost zero. There is slight growth now. There be built more with the longer term in mind instead of them. That is always a big tug of war that I think could are a couple of aspects that I have always tried to explain just short term – what am I going to have in the ad this be amplified on. That is one big one. The second one to people. I love doing business in upstate New York be- week, what can I get from you that will allow me to put that I would ask of vendors to keep in mind is that tradi- cause people are genuine. They are loyal. And they will something in the ad? It is how do we want to build this tional supermarket retailers are the only ones out there listen to what you have to say. Here, the fact that it has business? What do we want to stand for in the custom- selling their whole program. However, today everyone been a no-growth market for such a long time keeps er’s mind? What are those known value items that peo- wants to sell food. Every dollar store, every gas station, some people out of this marketplace, quite frankly. In ple buy every week that we can help them build meals every Home Depot, every Lowes, they want to sell the my past, I spent some time down in South Carolina with around? Those are the types of things. It is more a stra- top 50 items, the top 100 items. The problem for us is Bi-Lo. In the Carolinas everybody in the world wants that we are the only outlet that stocks all of the vendor’s to be there. Here you can build a business and sustain products. There is a cost behind us carrying the inven- it for the long run. Tops has been a part of the commu- tory and being the place where people could be traded nity since 1962. We have a long proud history. It is a We know that we have to be an easy place up, where people could be introduced to new products. great legacy and people appreciate that. You said earlier By everybody selling the top items, that takes thin mar- that the family aspect of the business as it grew up was for people to shop, and our promotional gins down to almost no margin. There is no way for us important to customers. We are the hometown grocer plan in the past tended to get a little bit too to survive in the long run with just the tertiary items. here. We want to continue to grow in the marketplace. That is how vendors survive – by line extensions and all Our store network here is better than anybody’s. I think complicated and it was complex enough that of those other things. It puts us at a severe disadvantage people really do enjoy shopping with us and recognize when we are the ones out there selling the whole pro- our commitment to the community. The fact is that we “people started to be a bit confused. So we are locally owned and operated. Our management team gram and everybody else gets to sell 100 ounce Tide or are going to be more straight-forward in our whatever the main product is. lives and works here. I do think that is an advantage. We are starting to see some growth, but we are not going to pricing. Customers will see everyday prices Food Trade News: So, how should vendors perceive get growth from organic sales. If you look at the history come down, our ads will be cleaner, there that – as you need to review your go-to-market ap- of our ID sales, they have been flat. The reason behind proach knowing that we are taking your full basket, we that, to a large extent, is the fact that we have such a will be fewer hoops for the customer to jump are giving you those ancillary opportunities? strong presence that when other companies like Aldi through, more about specific price points on and Walmart built stores and their presence over the last Frank Curci: There is a cost for us to do that and they decade, the pie didn’t get any bigger. They do business, known value items that they will be able to need to help us with that cost if we are both going to which makes it is hard to get organic growth. What we come in and get every day. We are trying to survive in the long run. Neither of us is going to survive have done here at Tops, and what we are going to have if we just sell the top 50 items. There is a definite cost to continue to do, is to grow our scale. When we took make ourselves a little bit more efficient in to the fact that we are going to carry the full line of a the business over from Ahold in 2007, we had 71 stores. how we deliver value to our customers.” manufacturer. It doesn’t help us when the top five items Today we have 159. That is really an important part of in every category can be bought anyplace, can be bought our story because we are not going to get the scale and Frank Curci, CEO by subscription, can be bought online, can be bought in growth from internal sales, from ID sales. We are going a gas station. It really hurts us. We have to find a solu- to need to manufacture that growth. tion to that. Food Trade News: You have also expanded geograph- tegic look and a promotional plan and the way we are Food Trade News: Your role as a businessman in Buf- ically. going to build and market our stores going forward. falo - you have been here a long time. It is a very tight, familial type market. You are not only CEO of the larg- Frank Curci: We have. When we took over from Food Trade News: One of the things our readers find est supermarket chain in the area, you are also the board Ahold, we were largely in the Buffalo and Rochester interesting is this constant buyer vs. seller grind. It’s like chair of Kaleida, which is the region’s largest healthcare markets. The Penn Traffic acquisition got us into Syra- “we want to work with you, we want to call you partner,” organization. You have a pretty broad view of the whole cuse. The Ahold-Delhaize merger allowed us to pick up but too many retailers have programs that vendors per- marketplace, not just your perch here. How do you look stores in the Hudson Valley. We bought the old Grand ceive as money grabs. From your perspective, you are at the economy here in a market like this, where there Union stores from C&S up in the Adirondacks. That has in the hot seat, you are the customer. In the vendor’s is no growth, somewhat negative growth, depending expanded us across upstate New York. We have 17 stores view, if you had a wish list for the people who call on the on where you are situated in the market? And related in Pennsylvania. We have three in Vermont. We are ex- company, how would you look to improve the overall to that the legislative piece, which could apply national- cited about our ability to take our program to other relationship and, most importantly, their effectiveness ly or locally, but always a key component when we are markets. We have done really well in the Hudson Valley. with Tops? What items might be on that wish list? talking about economic health. We have done well in the Adirondacks. We have done well in Syracuse. We have done well in the markets that Frank Curci: There are two big ones. One is having Frank Curci: I have been in Buffalo for almost 20 years transparency in how they could fund their products now. It is hard to believe. I have seen a lot over those See Tops Markets coming through our stores. There is a constant tug of 20 years. I am the board chair of Kaleida Health, which on page 25

24 | FOOD TRADE NEWS April 2019 www.best-met.com Tops Markets specific legislative items might impact Tops and the en- Food Trade News: Would it be fair to say, based on the From page 24 tire Western New York market? reality of this market or the differences of this market, that you are now poised to be able to adapt to some of we have gone into. That is how we see us continuing to Frank Curci: It is hard doing business in New York, es- these changing needs and tweak them to the point that, grow our business. Because the economy here is never pecially upstate New York, since most of the legislature if something needs to be accelerated, you now have the going to be booming. is very focused on the big cities. Upstate New York is capability internally and financially to do that? very different from the city. In a no growth, low margin Food Trade News: It is not just the pure scale of saying business, it just makes it very difficult to do business, es- Frank Curci: I think that absolutely the answer to that that we doubled our store count, it is also the success pecially with all the legislation around minimum wage is yes. We are poised to fill the needs of the modern you have had in these new markets, that have not only and benefits, etc. We have stores in Olean and in Frews- shopper. As I said, you can go online. If you look at our created scale but have created sales momentum. burg and Watertown, NY and all of those places where Instacart site, there is a lot of bundling and meal solu- we offer very good jobs to people. All of the legislation tion opportunities for people. You can shop our whole Frank Curci: Correct. Here in Erie County, in Buffa- around wages and benefits could push us to the limit store online. I have use it myself, and while I like to be in lo, we are not going to be able to grow much. We have where we are not going to be able to operate in those the store, it is a pretty seamless operation. We think it is stores on every corner. We have a great store network. types of situations anymore. The volumes just aren’t what some customers want. Will it ever be a major part It is just not going to offer growth to us in the future. high enough. It is very difficult for us to do it. of the business? I think in our area it is not ever going to In Rochester we have the opposite - with that being Wegmans’ hometown - we have a presence there. It is a Food Trade News: Specifically, you are talking about be more than five, six, seven percent of the business, but profitable presence, we are proud of our stores but with minimum wage programs? those two markets we are in a détente now. Everybody is kind of steady. It is the new markets that give us the Frank Curci: Minimum wage, worker’s compensation, We are excited about our ability to take our growth that we are going to need in the future. family leave benefits, scheduling. In supermarkets all of those things add up to an environment where it is program to other markets. We have done Food Trade News: Are there plans to touch down in difficult to be profitable. They are going to push us out really well in the Hudson Valley. We have done other markets adjacent to where you have expanded of more marginal areas and it is not going to be good or expand the base in Syracuse, eastern Pennsylvania, for the local communities. I understand why you need well in the Adirondacks. We have done well in Hudson Valley? a $15 wage in New York City, but in Jamestown, NY, “ Syracuse. We have done well in the markets where most of the population is at a much lower income Frank Curci: I think our greatest opportunity is to con- level, you are just not going to be able to operate any- that we have gone into. That is how we see us tinue to fill in our current footprint. When you go east more. continuing to grow our business. Because the of Syracuse, north of Syracuse, those areas where we are not well populated now. What we found in the past is Food Trade News: Digital and e-commerce: what is economy here is never going to be booming.” that by going after independents that are looking to get Tops doing that will make it more visible, more proac- out of the business or can’t compete, those are good op- tive and more engaging in that space? Frank Curci, CEO portunities for us to come in and take over a store for what is a very attractive multiple for us once we put our Frank Curci: The fastest growing part of our business cost structure and our program in place. We have been right now is the digital side. We partnered with Insta- pretty successful at growing that base. We think there cart about a year ago. Today, almost 90 percent of our we want to be relevant to that customer. customer base can shop online with us and have orders are opportunities for 20 or 30 more in those types of sit- Food Trade News: uations when we get further out east. We will look at in- delivered directly to their homes. We chose to go with Well said. Anything to add? dividual niches and opportunities within that footprint. Instacart because they had the best program. It is almost Frank Curci: I think we are poised for some good I think that will keep us pretty busy for now. impossible for a company of our size to develop our own network of delivery and online ordering and all of that. things ahead for us. This past year - while it was painful Food Trade News: I don’t know if you realize it, but We thought it was the best and quickest way for us to in a lot of ways, I would say that it gave us the chance Tops was one of the first retailers to utilize an infill strat- go. We have delivery, our prices online are the same as to really reflect on our business and understand what is egy. You bought Penn Traffic. You were one of the first if you shopped in the stores. We also just started to roll important going forward and we now have the where- to adopt something that now we are seeing Ahold use, out “Click and Collect.” Right now, it is up and running withal to fulfill some of those goals. We are excited Weis use. I’ll take the twos and threes. I want to be here. in three stores. We have 10 more stores coming with- about the years ahead for our business. As you know, that used to be frowned upon – there in the next month. Most of our customers will have the wasn’t enough scale, we are a new market, it is going to availability of ordering online and getting it delivered or Food Trade News: As you look at your career, which be difficult to ingratiate ourselves. Now that philosophy ordering online and going by and picking it up. How- has been very successful, is there an end zone close seems to have changed. You were one of the pioneers in ever, it is still a very small part of our business. Upstate by? Do you think that way? You are obviously in good that mindset. New York, again, is different than New York City. People health, but mindset-wise, where is the end zone if you here have cars. They drive around. They can get in their know at all? Frank Curci: I think that we were early on in that. It cars at any time and in five minutes be in a store. It is not has been really successful for us. We have acquired in- a big deal. They have a suburban house, they don’t have Frank Curci: I try not to look at it that way. The way I dependents from one store to four and five stores and to climb up eight flights of stairs. But we need to be in look at is, am I adding value? As long as I have input that they have been very successful. They tend to be in some the space, so we have gone all-in with Instacart. While is interesting and challenging to me personally, I feel of the out markets that are more defendable. You are not it is still a very small percentage of our business – less like I will continue. In a lot of ways when you reach a going to get a Wegmans or Walmart to build a new store than one percent –it is growing fairly quickly. We have a certain age, you want to know that what you are doing is there. They are profitable ventures and there are not a lot very active website. We have lots of email addresses. We meaningful. Right now, getting through this process was of downside risks to those things. have digital coupons. People can shop our ad online. We very meaningful. I think I added a lot of value during have an app. We are doing all of the things that a mod- the whole process. I think there is a lot of work to do to Food Trade News: We are seeing much more of that. ern retailer needs to do, because we need to be relevant. get us ready for the future and I would like to continue Whether it’s inner city opportunities or let’s move the We are also working on a program where people can to do that as long as I know that I am adding value and goal posts a little further for the primary purpose of shop in our stores and use their phones to buy stuff: by I am excited about it, interested in it and it is fun to me. we can’t exist with 18 other chains around us. That has scanning it and paying at the front end. We are doing all proven to be a pretty sagacious mindset in terms of what of the things that we think we need to do to attract that Food Trade News: Thank you. the industry is now doing. Regarding legislation, which millennial shopper. www.best-met.com April 2019 FOOD TRADE NEWS | 25 ssssssssssssssssssssssssssssss TAKING STOCK From page 12 NOSE (Natural/Organic/Specialty/Ethnic) distributor to a full-service wholesaler. “We saw problems with the way they integrated Haddon House,” said one retailer who wasn’t surprised that the Providence, RI-based distributor was having difficulty transitioning into a full-service wholesaler. “Within six months, UNFI pretty much abandoned the customer service mantra that had been Haddon House’s calling card and customers started leaving. Now that they’re playing in the big leagues, it’s actually worse. Communications are almost non-existent, and we’re forced to deal with former Supervalu employees who don’t even know if they’ll have a job by the end of the year. The deal was announced in July and we’ve still yet to meet with any of UNFI’s senior management.” Another multiple store owner stated: “We’re hugely frustrated by the lack of communications from UNFI. To think that it’s been nearly nine months since the deal was first announced and almost six months since it was consummated and no one from UNFI legacy leadership has bothered to put together a town hall meeting with all customers. Even if those initial meet- ings were just with UNFI’s larger customers, it’s vital to understand where the company is going and how they will address important issues such as cost of goods. At this point, what we’ve experienced is increased fees which have cost us tens of thousands of dollars. I’m also concerned from what I’ve read - which is all I can go by at this point - which is that UNFI wants to offer more ‘better for you’ products. That’s fine, but what about its many independent customers who operate inner city stores or supermarkets in economically challenged areas? The fact is that those customers still drink soda, eat sugared cereals and other processed foods - they need to pay attention to those items as well. One of our long-standing criticisms of Su- pervalu was that they hadn’t been very good at serving the perimeter of the store. Several of their current customers don’t buy an industry proportional amount of meat or produce from them for that reason. What we’ve also witnessed in the past six months is an unacceptable increase in out-of- stocks and no direction regarding private label strategy. I can attest that several of our competitors including ShopRite, Aldi and Giant have retails lower than our wholesale cost. This isn’t a good way to start a relationship that was going to be complex from the outset. I know that some of our SVU peers have reviewed our supply agreements to understand when we can become free agents.” And one more comment from another multiple-store owner: “I think these guys are in way over their skis. Are Steve Spinner (UNFI CEO), Sean Griffin (Supervalu CEO) and Chris Testa (UNFI president) hiding from us? I thought our relationship with Supervalu had improved tremendously over the past five years because of the skills of (past CEOs) Sam Duncan and Mark Gross. Those men understood our needs and challenges and were excellent listeners. Now I feel like we’re back in the dark days of the Jeff Noddle and Craig Herkert era. Show me some leadership.” Beyond its issues with earnings, stock price, service levels and criti- cisms from their own independent customers, UNFI has created another mess with the sale process of its Shoppers Food & Pharmacy stores. UNFI was candid from the outset – they would be divesting themselves of all corporately-owned retail. The process to sell Shoppers started months before the UNFI/Super- valu deal was announced. Several retailers told us that final bids were due last November, but to this point, except for a handful of stores that have been sold (others have been closed), the process lingers. During UNFI’s recent second quarter conference call (it posted a $341 million loss), Spin- ner said he was confident that the sale will be completed in the coming months. Coming months? Seriously, why is the process taking so long? It’s unfair to the thousands of associates who still work for Shoppers, who have been told nothing directly about their future. It’s gotten to the point where Mark Federici, president of UFCW Local 400, which represents Shoppers’ clerks and meatcutters in the Washington market (and is the largest UFCW Local in the country), has threatened ac-

TAKING STOCK continues on page 31

26 | FOOD TRADE NEWS April 2019 www.best-met.com Continuing to Advance our Intelligent Growth!

We’re ‘Welcoming Back’, an old friend…

Look for the Pathmark store opening at 1525 Albany Ave., Brooklyn NY Congratulations to PSK Supermarkets!

For more information, contact:

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www.best-met.com April 2019 FOOD TRADE NEWS | 27 Trade Treks To Beantown For Seafood Expo North America March 17-19 At Boston Convention Center

The annual Seafood Expo North America was held last month at the Boston Convention Center. Phillips Foods is The NAFCO team was out in full force at the Seafood Expo Donna Snyder (2nd from r) of Seafood America poses for well represented at the show by John Baxter (l) and Steve (l-r) Billy Guthier, Neil Lauryssens, Stanley Pearlman, Jeff a photo with Redner’s Markets’ (l-r) Chris Morgan, Leslie Phillips. Pearlman, Ian Page and Mark Emmons. Morgan, Tim Merkel and Laurie Merkel.

Among those making the trip to Beantown for the show are (l-r) Matt Burke, Seafood America; Carol Boyle, Kroger; Jim This Seafood America duo features Tom Dengler (l) and Burke Sr., Seafood America; Shelley Zang, Kroger; and Jim Connor Kienzle, who represents the third generation of his All smiles for our photographer are Dave Daltry (l), Tim Sul- Burke Jr., Seafood America. family to work at the company. livan (c) and Steve Grosser, all with Kelchner’s.

Handling business at the show for Burris Retail Logistics Acme Markets’ Charlie Bell (2nd from l) is joined here by (l- Anthony D’Angelo (l) and Donna D’Angelo of Samuels & Son are (l-r) Andy Stone, Samantha Torre, Mike Mayhart and r) Raul Squadritto of AquaChile, Dan McKeone of Innovative Seafood check out the latest seafood innovations at this Mike Pitcher. Food Sales and Alvaro Toro of AquaChile. year’s expo.

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28 | FOOD TRADE NEWS April 2019 www.best-met.com We realize there’s a lot on your plate, so thanks for coming out.

Thanks to all who attended Independent Retailer Conference 2019!

A BIG thank-you to all of our suppliers and customers for your support! We really value our partnership and can’t wait to see you again at our next Food Show, Merchandising Marketplace, on August 6 – 7, 2019, at Foxwoods Resort Casino.

www.bozzutos.com 1-800-243-9761

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boz_39525_05_01_IRC19_10x10p5_ThankYou_m.indd 1 3/28/19 9:30 AM www.best-met.com April 2019 FOOD TRADE NEWS | 29 Public Gets Sneak Peek Of New Pathmark Store Set To Open In East Flatbush Section Of Brooklyn This Month

PSK Supermarkets and Allegiance Retail Services gave the public a sneak peek of the Pathmark store set to debut in Brooklyn later this month. Welcoming visitors to the 49,000 Here we have (l-r) Jeff Spector, Sherry Toy and Mike Conese square foot store, still be set for its debut, are John Derde- John DiPietro (l) of PSK Supermarkets is joined here by of Allegiance Retail Services, along with PSK Supermar- rian (l) of Allegiance Retail Services and new store owner Dean Holmquist of Allegiance Retail Services. kets’ Ed Hunt. Noah Katz of PSK Supermarkets.

NYC Public Advocate Jumaane Williams addresses the John Rota (r) of PSK Supermarkets poses for a photo with This Allegiance Retail Services trio comprises Dan Dinkow- crowd while John Derderian (c) of Allegiance Retail Services Fabio Guerrerio (l) and Samer Rahman, both with Allegiance itz (l), Gene Fradella (c) and Joe Fantozzi. and Noah Katz (r) of PSK Supermarkets look on. Retail Services.

We don’t tell you which retailers are out of milk ...

but we will tell you which

▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ones are out of step. Food Trade Food Trade News. The news you care about. NA PUBLICATIONews OF BEST-MET PUBLISHING, INC. www.best-met.com

30 | FOOD TRADE NEWS April 2019 www.best-met.com ssssssssssssssssssssssssssssss TAKING STOCK From page 26 tion against UNFI if they aren’t more forthcoming about the status of the retailer’s employees. “Our members have been the backbone of Shoppers’ stores far lon- ger than UNFI has had an interest in those stores and they deserve more respect than UNFI has shown in this process,” Federici wrote in a letter to Spinner. “They deserve to know what the future holds.” And to his members, Federici penned this: “In the coming weeks, we expect UNFI to provide us with the information we have requested. If they do not, we will take appropriate action, including actions we will be asking you to participate in, both in your stores and in the communities you serve.” I believe it was the great educator and civil rights leader Benjamin Mays who said, “Honest communication is built on truth and integrity and upon the respect of one for the other.” For UNFI, it’s time to step up to the plate or it will be getting later much earlier than they think. ACME MARKETS HELD A VENDOR MEETING APRIL 2 AT SUGARHOUSE CASINO IN PHILADELPHIA. Up- Kroger Continues To Divest Non-Core Assets dating the vendors were these members of the retailer’s executive team (l-r) Kim Gray, VP of merchandising and marketing; Sherry Caldwell, director of marketing; division president Jim Perkins; Chris Preli, general As Turkey Hill Dairy Sold To Texas PE Firm manager of the retailer’s Denver, PA distribution center; and Kristan Lewis, conversion lead for the Denver, Kroger continued its plan to prioritize its core supermarket business PA distribution center. and its new technology initiatives when it announced late last month that it had sold its Turkey Hill Dairy business to Peak Rock Capital, a mid-market private equity firm based in Austin, TX. Be sure to mark your calen- Before we leave for this Twelve months earlier, the Cincinnati, OH-based merchant – the largest U.S. pure-play supermarket retailer with annual sales of $121 billion - un- dars for a terrific event that re- month, word on the street was loaded its 784 store convenience division (which included such banners as ally takes caring to a new level. that Rich French will be joining Turkey Hill, Loaf ‘N Jug, Kwik Shop, Tom Thumb and Quik Stop) for $2.15 May 20 is the date of the 7th Key Food Stores as vice presi- billion to British c-store and petroleum firm, EG Group. annual cocktail party for the dent of customer development. While no price was announced for the Turkey Hill Dairy deal, the new Friends of the Food Industry The new position will start to- owners said it would continue to operate the large dairy and headquarters (F.O.F.I.). The meeting will take ward the end of April. Rich joins in Conestoga, PA and retain the approximately 800 full-time, part-time and place once again at the Hacken- Key Food from his long ten- seasonal associates currently employed by Turkey Hill. sack golf club in Oradell, NJ and ured position as vice president “We believe this is the right step to ensure the Turkey Hill business this year the group will be hon- sales-Metro NY at Acosta Sales can meet its full potential and continue to grow its successful ice cream Metro Beat oring Larry Inserra Jr., CEO of & Marketing. Although Rich and beverage brands,” said Erin Sharp, group VP for Kroger Manufacturing. Inserra Supermarkets, and will “Throughout this process, we were extremely impressed with Peak Rock’s will be jumping to the other side also extend Lifetime Achieve- professionalism and vision for the future of the Turkey Hill business. We look From page 8 of the desk, I believe it’s a great forward to working with them to ensure a smooth and successful transition ment awards to Rich Desimone hire for Key Foods’ Dean Jan- for all parties.” succeed at college and beyond..... (formerly of Krasdale Foods), eway, CEO, and George Kno- well done to all involved! “Turkey Hill represents an exciting opportunity to invest in a premier Tony Gasparro (formerly A&P) bloch, COO. Frenchie is one of We heard from our old friend brand with an established reputation for quality, flavor variety, and authen- and Jen Kemp (Acosta). FOFI those hard working guys that Brian Todd of The Food Insti- was established in March 2013 ticity, within the large and growing ice cream and refrigerated drinks space. is just genuinely likeable. His We are impressed with the accomplishments of the business under the tute, who tells us that their newly when a group of Food Industry charisma, personality and work stewardship of Kroger and look forward to completing a seamless transi- revamped Food Business Merg- “friends and business associ- ethic are always well received by tion of the business to a standalone entity and partnering with Turkey Hill’s ers & Acquisitions 2018 report is ates” decided to create an orga- everyone he encounters, and I’m management team to drive significant growth through continued product available and provides detailed nization whose sole purpose is innovation,” said Robert Pistilli, managing director of Peak Rock Capital. analysis on the mergers and ac- to help individuals and families sure it will work just as well at Anthony DiSimone, CEO of Peak Rock Capital, added, “We believe that quisitions recorded in 2018 in within the industry that are in the big co-operative. He will be Turkey Hill represents an excellent platform for growth through near-term an easy to digest format. The financial straits. To date over the working alongside vice president organic initiatives and strategic acquisitions. We will be aggressively pursu- of business development John ing complementary acquisitions to extend the product and brand portfolio.” workbook is organized into over six years of existence, F.O.F.I. 25 categories and is a valuable has raised over $750,000 which Durante, who will be showing Closing is expected during Kroger’s first quarter (which ends on May 25) Frenchie the ropes of working and the after-tax proceeds will be used to reduce debt. resource for exploring trends in has helped numerous families in on the retailer side of the food In December 2018, Kroger also sold its digital coupon and rebate pub- specific industries or interna- the food industry. The group is lishing division, YouTech, to Inmar, the Winston-Salem, NC-based technol- tional markets, comparing the a licensed 501(c)(3) non-profit industry. All the best Frenchie! ogy and analytics firm which will gain a long-term services agreement with past year’s deals with historical organization and all funds are Well that will do it for now. the retailer. Kroger acquired YouTech in 2014. data. The guide also comes with disbursed to families in need Glad to see the warm weather is In late 2017, Kroger said it would explore potential sales options for its a comprehensive, one-of-a-kind or who have fallen on diffi- here to stay for the balance of the non-core businesses and would also look to expand its digital and e-com- Excel file, listing every single cult times. All funds are raised Spring, and hopefully that will merce operations under a new initiative called Restock Kroger. While it has merger in the industry in the through this once a year party bring all of you out and about now sold three businesses within a year, it has also signed an exclusive past year, organized by category so again, please mark your cal- and hope I see you at some of the agreement with British online distributor Ocado (it is currently building and completely searchable and endars and for information you many events taking place over three of what may be as many as 20 online warehouses in the U.S.) and sortable. To order your copy call can email FOFI at friendsoft- the next several weeks. As always TAKING STOCK continues on page 37 201-791-5570 or email ques- [email protected]. I you can reach me at kgallagher@ [email protected]. hope to see you there! best-met.com or 201.250.2217. www.best-met.com April 2019 FOOD TRADE NEWS | 31 Legislative Line Getting High In The Aisles A not-so-well publicized item containing added CBD or the lection issues, cell banks and in the new farm bill which legal- psychoactive compound RHC According to Politico, USDA growth. Then regulation tasks will ized hemp is getting a bit of atten- across state lines, or market CBD says that states are abusing their fall to USDA’s Food Safety and tion within the farm community, or THC-containing products ability to get waivers from able Inspection Service (FSIS) during manufacturing sectors, at state as dietary supplements because bodied adult dependents’ work the cell harvest stage. FSIS will house levels and even with fi- both are ingredients in FDA-ap- requirements, which were writ- then have responsibility of pro- nanciers who want to cash in on proved drugs. That means the ten in a bipartisan 1996 welfare duction and labeling of both cell- what may be the next big product agency needs to issue a rule for reform law. Democrats and an- based meat and poultry products. ingredient to enhance the health CBD products to be legally mar- ti-hunger advocates argue that There are still regulatory issues of your customers. What’s up you keted.” Lots of questions will need curbing the waivers will harm to be decided but both agencies say? Well, it appears as if the De- to be addressed from the farm those with a low income who have amicably agreed to develop partment of Agriculture and the levels, interstate transportation, might be considered able-bodied, “joint principles” on such crit- Food and Drug Administration and marketing of such products. but who struggle with significant ical issues as labeling which is are learning that they have their FDA is holding a meeting this barriers to work, such as home- extremely important to the meat hands full as they begin to draw month to begin to iron out an- lessness, lack of transportation, and poultry industry. Uma Valeti, up road plans for non-psychoac- swers to a lot of questions from mental health issues or addiction CEO of Memphis Meats, a leading tive cannabis production to legal- those inside and outside of the Barry F. Scher recovery. This may become an cell-based meat company, said, ly market cannabidiol, or CBD, government. PS: If my headline Policy Solutions LLC embarrassing issue for Republi- “Demand for meat is projected to in food and dietary supplement made you smile, you should know cans as I envision the Democrats double by 2050, and every stake- products. that marijuana and hemp are dif- and go over my food industry ca- using the issue on the campaign holder we speak with, regardless Meanwhile, over on Capitol ferent within the cannabis plant reer, but Gottlieb was a rising star trail. of production method, shares the Hill, retiring FDA Commission- group. CBD can alleviate stress or and one of the most likeable agen- goal of feeding our growing plan- er Scott Gottlieb has said that he reduce pain without getting the cy heads within the huge federal Food Labeling et in a safe and sustainable way.” wants Congress to discuss “al- user high. And no, I don’t know bureaucracy. No replacement has Meatingplace News recently ternative approaches” to oversee this from personal experience. It been named at press time. reported on two studies on food GMO Salmon In 2020 CBD development. It is an un- is just a fact. labeling. The first was a report Genetically modified salmon known if his pending departure By the way, Commissioner Got- SNAP Work Requirements on a survey on the importance of was approved over three years ago will slow down the CBD review tlieb’s departure was a surprise to You will recall in my prior col- clear labeling to consumers. More by the FDA, but the issue quickly process, but I’d say it is likely. This many. It was reported that he sim- umns that President Trump and than 47 percent of respondents became a political football. The is an issue that is in legal limbo ply wanted to spend more time his USDA secretary, along with said that they read the nutrition latest news is that the GMO prod- land according to Politico News with his New England based fam- many Republicans, were looking and ingredients information on uct may be appearing on grocery who stated that “it’s currently il- ily. He will be missed as I’ve seen to clamp down on food stamp labels very carefully. The study shelves next year. Senator Lisa legal for companies to sell food many FDA Commissioners come (SNAP) recipients by requiring identified the terms “antibiotic Murkowski (R- Alaska) who has work requirements in order to free, clear label, hormone free and led the charge against the GMO obtain food stamps. House Dem- transparency” as the four most salmon to protect her state’s salm- ocrats said, “No way” and voted important consumer needs when on industry, is not giving up the against work requirements in the buying meat and seafood. The fight as she still wants to see very new farm bill. Not one to give up, second study was conducted by stringent labeling requirements. Agriculture Secretary Sonny Per- the Johns Hopkins, Harvard and However, FDA has determined due is still pursuing work require- the National Consumers League that it does not need to finalize ments and just last month issued on the impact of date labels on prior labeling guidelines because a terse press release reiterating food waste. The study found under a UDSA law enacted in the department’s rationale for widespread confusion about the 2016, there is already a require- its new proposal to crack down meaning of date labels. Over 84 ment for the disclosure of GMO on states’ ability to seek waivers percent of the respondents dis- ingredients nationwide and that from existing work requirements carded food near the package the law applies to salmon. “It’s not of able-bodied adults without de- date at least occasionally, while 37 our problem,” says FDA. Thus, the pendents. The proposed rule aims percent reported that they always product could start to appear in “to restore the system to what or usually discarded food nearing the marketplace next year. it was meant to be: assistance the package date. through difficult times, not life- Seafood Mislabeling REPRESENTATIVES OF PRICE RITE MARKETPLACE CELEBRATED long dependency,” USDA high- More On Fake Meat And speaking of seafood la- the grand re-opening of five of its Connecticut stores with local com- lighted in its press release. This The latest update is that USDA beling, according to a report munity members on March 29. The refreshed Price Rite Marketplace is an issue of significant impor- stores feature even lower prices on hundreds of items, new and ex- and the FDA have worked out an from Oceana that crossed my citing private label and organic products, and stores redesigned to tance to our food retail industry oversight agreement that has ev- desk recently, one in five seafood offer the best possible shopping experience. Jim Dorey (l), president as it would negatively impact food eryone within non-government products are mislabeled, deceiv- of Price Rite Marketplace, and John Figueiredo, store manager, Price stamp sales by decreasing the abil- circles and within government ing consumers about the type of Rite Marketplace of West Hartford celebrate the grand re-opening of ity of food retailers to serve those in total agreement- a rarity these See LEGISLATIVE LINE Price Rite Marketplace of West Hartford. in critical need of food assistance days. FDA will monitor cell col- benefits. on page 42

32 | FOOD TRADE NEWS April 2019 www.best-met.com Innovations in Fresh Cut & Produce

• Full-line Conventional Produce • Forward Distribution • Full-line Specialty/Ethnic Produce • Private Label • Full-line Organic Produce • Full-line Salad Processor • Fresh Cut Program • Locally Grown www.lancasterfoods.com

www.best-met.com April 2019 FOOD TRADE NEWS | 33 Krasdale Foods Ladies Luncheon & Casino Event To Honor Female Store Owners, Businesswomen

Krasdale Foods held its first annual luncheon and casino event on International Women’s Day to honor its female store own- ers and businesswomen in the grocery trade with proceeds from the event going to support the group Women In Need and help New York’s homeless women and children rebuild their This photo features (l-r) Jill Oliva, iHeart Radio; Bridget Ma- lives. Cathy Brennan (l) of JOH smiles for a photo with Cynthia Renee Delmotte (l) of Bozzuto’s chats with Donna LaCava of loney and Dylana Silver, Alpha 1 Marketing; Jennifer Breault, Ramos (c) and Lucille Desimone of Krasdale Foods. Advantage Solutions. iHeart Radio; and Kelly Vail, Alpha 1 Marketing.

Among those at the event, held at The Chart House in Weehawkin, NJ, were Renee Delmotte (l) of Bozzuto’s, Terri Here we have (l-r) Janet Estevez and Cathy Tiabi of Krasdale Acosta is well represented at the luncheon by Jen Kemp (l), Rodesky-McCarthy (c) of ESM Ferolie and Marcy Grossman Foods and SC Johnson’s Karin Peterson and Jocelyn Lane. Maria Scalvino (c) and Lisa Podesta-Coombs. of Krasdale Foods. Food Marketing Center of Excellence

Register 2019 FOOD INNOVATION SUMMIT before April 1, 2019 and save Thursday, May 2 • Hyatt Regency • Buffalo, N.Y. • 12 p.m. – Lunch • 1 p.m. – Summit Begins 10%! Loyalty that Lasts: Creating Personalized Customer Experiences for Loyalty in the Digital Age

RETAIL EXECUTIVE PANEL Frank Curci – Chief Executive Officer and Chairman – Tops Markets Jim Dorey – President – Price Rite Marketplace FOR MORE INFORMATION, CONTACT Alan Stock Kurt Schertle – Chief Operating Officer– Weis Markets [email protected] • 716.286.8058 Mike DeCory – Vice President – Grocery, Dairy, Frozen – Wegmans Food Markets Ian Prisuta – Senior Vice President of Business Development, www.niagara.edu/innovation-summit Strategy and Innovation HUB – Giant Eagle, Inc.

SPEAKERS Jason Smith – Managing Director USA – Shopper Intelligence Jack Li – Haiku Master – DATASSENTIAL Neil Stern – Senior Partner – McMillanDoolittle

34 | FOOD TRADE NEWS April 2019 www.best-met.com www.best-met.com April 2019 FOOD TRADE NEWS | 35 ssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss TRADE CALENDAR April 23 or [email protected]. https://www.pfma.org/2019-an- July 8 outing at Engineers Country Club in Roslyn, NY and Glen Head Golf The Eastern Produce Council nual-conference.html. The 26th annual Key Food in- Club in Glen Head, NY. For more will host a dinner at Il Villaggio in May 7-8 vitational golf outing benefiting information, go to www.trisiac.org. Carlstadt, NJ sponsored by South DPI Specialty Foods will hold June 1 the Morris Levine Key Food Stores Carolina Department of Agricul- its 2019 holiday trade show at the The Eastern Produce Council Foundation will be held at Pine September 24-25 ture. Cocktails begin at 6:00 p.m. Hilton in Baltimore. will hold its 44th annual golf out- Hollow Country Club in East Nor- To register, go to www.easternpro- ing at Royce Brook Golf Cub in wich, NY; Mill River Club in Oyster The 2019 Latino Food & Bev- ducecouncil.com. Bay, NY; and Muttowtown Club in May 20 Hillsborough, NJ. To register, go to erage Show will be held at the www.easternproducecouncil.com. East Norwich, NY. Meadowlands Expo Center in Se- April 24 Friends of the Food Industry’s caucus, NJ. For more information, 7th annual cocktail party honory July 8-9 call 848.258.2144 or email lati- The Greater Philadelphia chap- Larry Inserra Jr. of Inserra Super- June 2-4 ter of the Network of Executive [email protected]. markets will be held at Hacken- IDDBA’s 2019 Dairy-Deli-Bak- Weis Markets will hold its an- Women will host an event from sack Golf Club in Oradell, NJ. For ery Expo will be held in Orlando, nual golf outing. More details to 3:00-6:00 p.m. at Saint Joseph’s October 2 more information, email friendsof- FL. follow at a later date. University in Philadelphia. For thefoodindustry.com. The New Jersey Food Council more information, go to www.ne- will host its annual Good Gov- June 10 July 15 wonline.org. ernment breakfast at Forsgate May 21 Ahold Delhaize USA Family Boyer’s Markets will hold its Country Club in Monroe Twp., NJ Foundation will hold its annual golf April 29 The Eastern Produce Council annual golf outing. More details to beginning at 8:30 a.m. For more will host a dinner at Demarest outing. More detail to follow at a The MAFTO golf outing will be follow at a later date. information, go to www.njfood- Farm at Hilldale, NJ sponsored later date. council.com. held at Commonwealth Golf Club by the New Jersey Department of in Horsham, PA. Registration at Agriculture. Cocktail hour starts at June 10 July 15 October 2 9:00 a.m., shotgun start at 11:00 6:00 p.m. followed by BBQ at 7:00 Family Owned Markets will host a.m. To register, go to www.mafto. The annual FUPAC golf outing p.m. To register, go to www.east- its Heather “Kappesser” Diguar- The Eastern Produce Coun- org. will be held at St. Andrew’s Golf ernproducecouncil.com. di Memorial Charity golf outing at cil will host a dinner at Met Life Club in Hastings-on-Hudson, NY. Foxchase Golf Club in Stevens, PA. Stadium in New York, sponsored For more information, contact Rich April 30 Registration starts at 11:15 a.m. by Idaho Potato Commission and May 22 DeSimone at 914.697.5352. followed by shotgun start at 12:45 Avocados from Mexico. Cocktail The New York Metro Chapter of The New Jersey Food Council the Network of Executive Women p.m. For more information, contact hour begins at 6:00 p.m. followed will host its annual trade relations July 22 by dinner at 7:00 p.m. To register, will hold a “Discussion on Disrup- conference at Harrah’s Resort in Jim Kidwell at jim.kidwell@family- tion” at Liberty House in Jersey ownedmarkets.com. Krasdale Foods’ inaugural golf go to www.easternproducecouncil. Atlantic City, NJ from 3:00-6:00 com. City, NJ. Panel, moderated by Kathy p.m. For more information, go to tournament celebrating the com- Rusello of Ahold Delhaize USA, will www.njfoodcouncil.com. June 11 pany’s 111th anniversary will be feature; Donna Banks-Ficcio, Weis held at Glen Head Golf Club in October 17-19 Markets; Lilian Lee, Unilever; and The annual NSA golf outing Glen Head, NY with proceeds ben- May 23 will be held at Montclair Golf Club PMA’s Fresh Summit will be Chris Skyers, Wakefern. For more efiting multiple charities. For more held in Anaheim, CA. For more The New Jersey Food Council in West Orange, NJ. For more in- information, go to www.newonline. information, contact Rich DeSim- information, go to https://www. will host its annual golf outing at formation, contact the NSA at org. one at 914.697.5352. freshfrommexico.com/event/pma- Suburban Golf Club in Union, NJ 718.747.2860. fresh-summit-2019/. with shotgun starts beginning at May 1 August 21 8:00 a.m. and 1:00 p.m. For more June 20 The Imperial Dade Innovations information, go to www.njfood- Key Food will hold its fall sell- October 24 Expo will be held at the Meadow- council.com. Allegiance Retail Services will ing show at Nassau Veterans Me- hold its annual selling show at the The annual FIA Red Carpet lands Expo Center in Secaucus, morial Coliseum in Uniondale, NY. banquet will be held at Glen Island NJ. For more information, contact Meadowlands Expo Center in Se- May 24-27 Harbour Club in New Rochelle, NY. [email protected]. caucus, NJ. For more information, September 10 For more information, contact Ava Massachusetts Food Associa- contact Steve Hungerbuhler at Stone at 518.434.1916 or ava@ tion will host its 38th annual Fam- [email protected]. The Marcum Food & Beverage May 1 fiany.com. ily Reunion Convention at Omni Summit will be held at the Convene The Mazars USA Food & Bever- Mount Washington Resort in Bret- June 23-25 Conference Center in New York age Summit will be held at Maple- ton Woods, NH. This year’s theme City. For more information, contact November 14 wood Country Club in Maplewood, is “Out of This World” and the The Summer Fancy Food Show Flo Federman at 631.414.4299 or will be held at the Javits Center FIA’s Albany trade dinner will NJ. For more information, contact category focus will be on meat, [email protected]. be held at Glen Sanders Mansion Teresa Hansen at Teresa.Han- seafood and deli. For more infor- in New York City. For more infor- mation, go to www.specialtyfood. in Schenectady, NY. For more in- [email protected]. mation, go to www.mafood.com or formation, contact Ava Stone at com/shows-events/summer-fan- September 11-14 call 617.542.3085. 518.434.1916 or [email protected]. May 3 cy-food-show. Natural Products Expo East will be held at the Baltimore Conven- Los Rancheros Unidos will hold May 28-29 If you would like to publish an event June 24 tion Center. For more information, its 7th annual Rancheros Unidos The Pennsylvania Food Mer- go to https://www.expoeast.com. in our trade calendar, please send Foundation Banquet at Leonard’s chant’s Association will hold its The FIA Jack Duffy Golf Clas- entries to Terri Maloney at tmalo- of Great Neck in Great Neck, NY. 2019 annual conference at the sic will be held at Scarsdale Golf [email protected]. Include a con- September 17 For more information, or to make Pennsylvania Convention Cen- Club in Scarsdale, NY. For more tact name and phone number, email a reservation, contact George Kno- ter in Philadelphia, PA. For more information, contact Ava Stone at The Tri-State Italian-American address or web address for reserva- bloch at Key Food - 718.697.8213 information, or to register, go to 518.434.1916 or [email protected]. Congress will host its annual golf tions or additional information.

www.best-met.com food news you can use

36 | FOOD TRADE NEWS April 2019 www.best-met.com ssssssssssssssssssssssssssssss TAKING STOCK From page 31 also expanded its Home Chef Express meal kit program to its nearly 2,800 supermarkets which currently operate in 30 states.

‘Round The Trade Dollar General, the king of all dollar store retailers, said it would open a whopping 975 new stores this year and remodel 1,000 other units. About half of the upgraded stores will utilize the company’s “Traditional Plus” for- mat which features added cooler space. Fresh produce will also be added to approximately 200 of those remodeled stores. And in another major announcement, the Goodlettsville, TN-based discounter, which operates almost 15,400 stores in 44 states, said it will self-distribute its fresh and frozen foods chainwide. In a new initiative, which was tested last year at a temperature-controlled DC in Pottsville, PA (Schuylkill County – the mecca of food wholesaling in Pennsylvania), the retailer began supplying about 300 of its stores in the Northeast. By the end of its next fiscal year in January 2020, Dollar General expects to add new warehouses that will supply up to 5,000 stores and by 2022 could be fully integrated with its own self-distribution fresh/frozen network…it looks like there’s more man- agement turnover at Lidl. Earlier this month, CEO Jesper Hojer resigned after a two-year tour of duty. Ignazio Paterno, deputy purchasing director at the Neckarsulm, Germany discounter and former chief exec at Lidl’s Italian division, will head the company on a “provisional” basis. In late March, Pat- rick Kaudewitz, who was CEO of parent firm Schwarz Group’s conventional supermarket chain Kaufland, also resigned. That follows several changes in the U.S. over the past few years. When the company first announced plans to enter the U.S. in 2014 it named Kenneth McGrath as its CEO. He stayed about a year, and after leaving the grocery business for a short spell, is now chief executive at rival Save-A-Lot. Replacing McGrath in 2016 was YOUR PARTNER Brendan Proctor, who stuck around long enough to open the first batch of disappointing Lidl stores in the U.S. He was replaced nearly a year ago by Johannes Fieber, another Lidl European import who remains on the job today. In February, Lidl bolstered its local management by adding company veteran Roman Heini as U.S. chairman. And at Heini’s hidey-hole, Lidl’s corporate headquarters on S. Clark Street in Arlington, VA, the retailer has IN SPECIALTY carved out about 1,000 square feet of space to operate its own conve- nience store – Lidl Express – that is open to the public, but is expected to For 100 years John Vena Inc. has partnered with a global network of primarily serve Lidl associates who work in the high-rise building. The small unit carries typical c-store items as well as some fresh bakery, produce, pre- growers to bring the best of the world to market. Today our team brings pared foods and beer and wine…in what is somewhat of a rarity, ShopRite that passion for innovation to the table, connecting you to the cutting edge is closing a store. Collins Family Markets, which operates the Glen Burnie, MD ShopRite (and four other SRs in Philadelphia), will shut its doors in the of ethnic and gourmet specialty in the produce department. We’ll help you Old Line State late next month. The store, a former Kmart, opened in 2010. identify the right product mix to keep any demographic coming back for The company said on its Facebook page “We have been unable to reach a sustainable level of sales and have decided to close.”…another company more – and provide the added services you need to maximize sales. that competes with all three retailers in Central PA – Grocery Outlet – has filed to launch an IPO. The Emeryville, CA based discounter operates 20 stores in the Keystone State and more than 300 units in all (mostly on the West Coast) with sales of more than $2 billion. Founded in 1946, the former family-owned merchant was first acquired by Berkshire Partners and LEVERAGE THE POWER OF SPECIALTY. then sold to another PE firm, Hellman & Friedman, in 2014. Most of its stores are owned by independent licensees…if you’re wondering why the hype over meal kits has waned significantly, all you need to know are a few recent tidbits. First, Albertsons recently announced that it is cutting the private label • custom packing • custom ripening number of stores where its Plated meal kits are available and will now only be marketing them in select stores. Albertsons acquired Plated 18 months wholesale • organics • ethnic programs • logistics ago and in the past few months both co-founders have left the supermarket chain. And according to Bloomberg, Plated has laid off about 25 people, about 10 percent of its corporate staff, at its New York City headquarters. Also, Blue Apron, which helped fan the meal kit mania by going public nearly two years ago, has another new CEO, Linda Kozlowski, after former chief executive Bradley Dickerson resigned early this month. Blue Apron, which fizzled from the outset, was trading at a whopping $1.04 per share TAKING STOCK continues on page 42 johnvenaproduce.com | 215.336.0766

www.best-met.com April 2019 FOOD TRADE NEWS | 37 NEW Greater Philly Chapter Hosts Spring Learning Event - ‘Find Your Voice’ - At Giant/Martin’s HQ

The Greater Philadelphia chapter of the Network of Ex- ecutive Women (NEW) held its spring learning event late last month at Giant/Martin’s headquarters in Carlisle, PA. Among those on hand for the “Find Your Voice - Ways To Speak Up At Work” presentation were (l-r) Nick Bertram, The event’s guest speaker Leta Beam (c) of Vantage Interna- Morgan Schreiber (l) of Giant/Martin’s is joined here by president of Giant/Martin’s; Donna Serio, Naturlich; and tional is flanked in this photo by NEW committee chairs Mi- Glenn Beidler (c) and Jen Bergman, both with Advantage, Steve Behmke and Melanie Bauman of Valassis. chele Luckenbach (l) and Kristin Lindsay, both with Hershey.

This group includes (l-r) Kerri Castillo, Erick Gable and Jen- Samantha Shevach (l) of Perdue chats with Ashley Hall (c) Melanie Bauman (l) of Valassis smiles for a photo with Sta- nifer Price of Giant/Martin’s and NEW’s Leesa Engelmann and Kelsey Sloan of Giant/Martin’s. cey Miller of Giant/Martin’s. and Katherine Hall.

These friendly competitors are Matthew Letcavage (l) of Gi- This Giant/Martin’s group photo features (l-r) Tracie Bach, ant/Martin’s and Weis Markets’ Wendy Sokol (c) and Tonya All smiles from Weis Markets are (l-r) Trisha Kuenzie, Janelle Julianne Sarcone, Kristi Monnett-Nailor, Kimberly Taylor and Rupert. Buch, Steve Davis, Jen Rogers and Elaine Cole. Sherry Ulsh. No Kittens. No celebrity gossip. No selfies. No recipes.

We only tweet about the important stuff.

Breaking news covering the industry from New England to the Carolinas. Follow us on Twitter @FoodWorldFTN

38 | FOOD TRADE NEWS April 2019 www.best-met.com New Exciting Changes - Stay Tuned! #bestmetisgettingevenbetter

www.best-met.com April 2019 FOOD TRADE NEWS | 39 Giant Raises Curtain On New Replacement Store In Warrington, PA

Giant/Martin’s held a grand opening for its newest store, a unit in Warrington, PA that replaced an old store in Phil Mele (l) of PLM Asso- Jamison, PA. At the store’s ciates checks out the new preview party were store store with Giant/Martin’s manager Jessica Fischer (c) Kevin Prill. and Chris Brand (l) and Wen- dy Welch, regional manager, all with Giant/Martin’s.

This Giant/Martin’s trio These Giant/Martin’s smiles features David Goodyear belong to (l-r) Robert Wagner, (l), Clarence Schley (c) and Marlene Bower, Joseph La- Caron Sanders. cagnina, Todd Robinson and Wendy Welch.

Proposed Corporate Responsibility Fee Next Anti-Business Bill Being Considered in Trenton During Governor Murphy’s cluding paid sick leave, Medicaid eligibility fac- health coverage. recent fiscal 2020 budget ad- expansion of paid family tors, that could further This type of tax is likely to fall dress, we were struck by his leave, a CBT surcharge, exacerbate the unpre- disproportionately on employ- introduction of a corporate re- mandatory combined dictability of the bud- ers that have a large part-time sponsibility fee proposal which reporting, and an in- geting process on our workforce. Many food retail as- would levy a $150 per employ- come tax increase. Our members. sociates seek the type of flexible ee fee on employers with more members are being We understand the schedules that part-time em- than 50 employees whose em- forced to cut jobs and proposal is being mod- ployment affords. This type of ployees utilize Medicaid. This investment in the State eled after a similar pro- new tax, on top of all the other proposal concerns New Jersey to just barely stay in gram in Massachusetts, increased costs levied on em- Food Council for a number of business. Additional tax which instituted a fee ployers in New Jersey, serves as reasons, and we will urge poli- increases will only exac- in 2017. Businesses a disincentive to hire or retain cymakers to reject this new pro- erbate this problem. that also operate stores part-time workers. posed tax. As we evaluate this in Massachusetts have NJFC has formed and is lead- First and foremost, the New new business tax, the By Linda Doherty, President shared their experiences ing a business coalition in Tren- Jersey food industry is already provisions are unclear. in that state. While these ton to further understand this struggling to absorb the cost NJFC retailers do not companies offered em- proposal, its impact on business increases associated with the know which of their em- ployer-sponsored health and push back on yet another newly enacted minimum wage ployees receive state Medicaid recipients that they employ at insurance to their employ- misguided anti-business ini- increase, which will have to be benefits. It is also unknown how any given time, they would be ees, some of these employees tiative coming out of Trenton. partially absorbed in 2019, an this fee would be assessed if an unable to estimate the costs as- who were eligible for the state We strongly encourage industry increase of $2.15 per hour over employee covered by Medicaid sociated with this proposed fee, Medicaid Plan chose to receive to engage with us so legislative the next eight months. In addi- has more than one employer. and unable to budget for these their health insurance coverage leaders and the Murphy admin- tion to the minimum wage in- Another complicating factor is increased costs. Additionally, through this state plan. Howev- istration understand additional crease, members are extremely the high turnover rates com- since the legislature is analyzing er, the companies were still ob- straws added to the camel’s back challenged by the other man- mon in the food retail industry. the impact of the higher mini- ligated to pay the tax for these will ultimately collapse. The im- dates and cost increases enacted Since our members do not know mum wage on benefits eligibil- employees who turned down pact to jobs, economic stability within this past year alone, in- the overall number of Medicaid ity, if the state decides to adjust qualified employer sponsored and future investment is at stake.

40 | FOOD TRADE NEWS April 2019 www.best-met.com Saint Joseph’s University, Italy-America Chamber Of Commerce Host International Specialty Food Summit

Saint Joseph’s University and the Italy-America Chamber Of Commerce teamed up to host an International Special- ty Food Summit last month at the university’s Mandeville Hall. Eileen Acello (l) of SJU joins the panel that discussed “Shaping Customer Experience,” including (2nd from l-r) Ar- thur Goncalves, Balducci’s; Will Magistrelli, Wakefern; Bill These folks are (l-r) Antonio Corsano, Veroni Meats; Brian Mignucci Jr., Di Bruno Brothers; Mike Cadoux, Kabaq 3D McGowan and Frank Pacifico, Wakefern; and John Pauciullo, This Bimbo Bakeries duo includes Taylor Convery (l) and Technologies; and George Latella, SJU. RDD Associates. Colin Ward.

All smiles for our photographer are (l-r) Dan D’Angelo and Among those addressing the summit were Ron Tanner (l) of George Latella, SJU; Justin Giorla, Cento; and Carlo Pratesi, David Goodyear (l) of Giant/Martin’s is joined in this photo the Specialty Food Association and Kevin Ryan of the Inter- Universita di Roma. by Donna Serio of Naturlich. national Corporate Chef’s Association.

Here we have (l-r) Chris Marcucci, Streetmarc; Jeff Marshall Making their way to the SJU campus in Philadelphia for the and Kevin Kane, Tandem Associates; Tom Mainzer, Penn- International Specialty Food Summit are Bill Mignucci Jr. (l) This Dietz & Watson trio features Louis Eni (l), Lauren Eni sylvania Department of Agriculture; and Mark Plamandon, of Di Bruno Brothers and Vincent Grispino of Altamonte’s. (c) and Michael Eni. Tandem Associates.

Happy to be on hand for the first International Specialty Food Summit are Federico Tozzi (l) executive director of the Will Magistrelli (r) of Wakefern chats with (l-r) Antonio Cor- These Balducci’s gentlemen are Arthur Goncalves (l), Ken Italy-America Chamber of Commerce and Joe Bivona, execu- sano, Al Adelson and Marco Veroni, all with Veroni Meats. Thompson (c) and Gerald Lascale. tive director of SJU’s Academy of Food Marketing. www.best-met.com April 2019 FOOD TRADE NEWS | 41 ssssssssssssssssssssssssssssssssssssssssss PEOPLE ssssssssssssssssssssssssssssss Food Marketing Institute (FMI) industry relations between both TAKING STOCK has announced the addition of retailers and suppliers. From page 37 Marjorie DePuy, MBA, to its DuPuy was formerly the vice staff. With more than 15 years of president of industry relations at the close of business on April 3…part of virtually every discussion I have experience in non-profit and as- and education with the Health- with retailers about the current state of their businesses seems to focus on sociation program management, care Distribution Alliance, where how the overstoring glut isn’t abating. Now comes word from JLL’s Grocery along with relevant industry ex- she guided strategy and devel- Tracker that new food store openings (all formats) increased nearly 30 per- perience, DuPuy comes to FMI oped content for an annual con- cent last year with more than 17 million square feet in retail space added nationally…Ocado, the British e-commerce distribution company that has grounded in both supply chain ference, educational programs aligned itself with Kroger in the U.S. and Sobey’s in Canada, will establish and sustainability issues and will and stakeholder engagement fo- its first American office in Washington, DC. While it searches for a perma- strengthen FMI’s work in those cused on the healthcare supply nent residence in the District, it will operate out of temporary digs in Tysons strategic areas. chain. Most recently, while travel- Corner, VA beginning later this month. And speaking of Kroger, Joe Kelley, “As FMI’s new senior direc- ing in New Zealand, DuPuy lent former executive with Price Chopper, Marsh, Stop & Shop, and Shaws/ tor for supply chain and sustain- her talents to support EcoFest Star, has been named president of Kroger’s Houston division. He replaces ability, DePuy brings a hands-on North, a month-long series of eco Marlene Stewart, who will retire from the Big K on July 20 after 41 years awareness of both the individual events focused on community-led with the company.…just when you thought we were heading for quiet period challenges and opportunities, initiatives in sustainable living. in the “Slow” Eddie Lampert watch, the former and (weirdly) current CEO along with the synergy existing and sustainability, amplifying the DuPuy started her career at the of Sears Holdings has been accused of “lifting” $57.5 million from several between supply chain and sus- association’s traditional strengths Grocery Manufacturers Associa- Sears bank accounts in the final days before closing his $5.2 billion deal tainability issues,” remarked Mark in addition to bringing a new tion where she designed and pro- to create a new and significantly downsized organization still under the Baum, senior vice president for awareness of the reciprocity and grammed the “Future of Food” control of another Lampert company – Transform Holdings. Creditors are industry relations and chief col- interplay between the two key Symposium, a groundbreaking fuming over this and U.S. Bankruptcy Judge Robert Drain strongly advised laboration officer for FMI. “Her areas. Her strategic thinking and industry event, involving hun- the worst retailer of his generation to return the funds. An April 18 hearing will settle the matter. Additionally, Sears has confirmed it will open new background in consumer package mission-driven attitude will en- dreds of industry executives, gov- hance FMI’s capabilities as these smaller specialty format stores that will focus on home goods (like appli- good companies and her practical ernment policy officials, research- ances, tools and mattresses - no apparel) called Sears Home & Life (not functional roles are becoming in- experience in building collabo- ers, academics, and other critical to be confused with House of Death). The first three stores will open in late rative business relationships will creasingly important to the con- stakeholders. While at GMA she May in the merchandising hot spots of Lafayette, LA; Overland Park, KS; and make her a strong solutions-based sumer and the day-to-day work of also coordinated organizational Anchorage, AK… leader in both of these critical op- the food retailer. As the modern strategic planning and served as erational areas for the food retail supply chain becomes more ‘cir- primary liaison to several mem- community.” cular,’ with the consumer at the ber committees. DuPuy has a BA Local Notes In her new role with FMI, Du- center, DuPuy will help elevate in government from Hamilton Just before presstime, approximately 31,000 UFCW clerks and meat- Puy will build upon FMI’s key FMI’s ongoing work by creating College and an MBA from Keller cutters went on strike at more than 240 Stop & Shop stores in Connecticut, functional areas of supply chain even more solid, collaborative Graduate School of Management. Rhode Island and Massachusetts. Five UFCW locals, whose contracts ex- pired more than two months ago, had continued negotiating with New En- renewed public interest in reduc- nationalgeographic.org/innova- gland’s largest retailer, but walked off their jobs on April 11 due to issues LEGISLATIVE LINE ing waste and packaging. After tion-challenges/plastic. primarily regarding health care coverage and monthly pension benefits. A From page 32 submitting my monthly column, joint news release from the five locals stated: “Instead of a contract that the Washington Post ran a story Nutrition recognizes the value and hard work that our members provide every day, fish or where it was caught. The that caught my eye. It stated that Stop & Shop has only proposed drastic and unreasonable cuts to health The American Journal of Pub- care benefits and take-home pay, while replacing real customer service with study was based on 2,000 sam- more than 70 percent of Earth’s lic Health has published a study ples across 30 states. The study surface is covered by ocean and more serve-yourself checkout machines. The hard-working men and women of the impact of taxes on con- at over 240 stores in Connecticut, Massachusetts and Rhode Island are is calling for more government the waters are increasingly get- sumption of sugary drinks. It standing together to tell Stop & Shop that it is time to do the right thing. The oversight of the seafood indus- ting clogged with plastic waste – studied Berkeley, CA for a three- try. The federal government does men and women who make Stop & Shop a success have earned and de- leftovers from consumer activity year period after the city im- serve affordable healthcare, a good wage, and the ability to retire with have a process in place called that have created extremely huge posed a tax on sweetened drinks dignity. They haved earned and deserve a good job that allows them to do the Seafood Import Monitoring garbage patches and choke fish, and compared that to consump- what they do best - provide the very best customer service for New England Program which currently only birds, and other marine life. I re- tion before the tax was in place. communities.” Stop & Shop said that it proposed a good and reasonable applies to 13 types of imported cently saw these floating masses The study estimated that the tax offer and was disappointed with the unions’ strike decision. The largest unit fish and only traces that prod- first-hand while on a December caused a 52 percent reduction in of Ahold Delhaize USA said contingency plans have been put in place to uct from boat to the U.S border. cruise. consumption! It is certain that minimize disruption....and also just before our deadline, big changes at The report urges more seafood How to solve the problem has the results of this study will be Giant Eagle. Joe Hurley, SVP-supply chain, will be leaving the company to traceability from catching to brought forth a contest that seeks used in the continued and often join Sprouts as SVP-supply chain. A new chief supply chain officer has been plating and is critical to ensure public input for solutions and hired but is yet unnamed. Also, the very popular and talented Jerry LeClair, heated debates over taxing soda EVP and general manager-supermarket and market district, will be leaving that all seafood sold in the U.S. is will pay handsomely for the most to improve nutrition and address safe, legally caught and honestly innovative ideas. The Post article the company in the next 4-6 weeks. As Giant Eagle searches for LeClair’s chronic diseases attributed to the replacement, Ian Prisuta, SVP-strategy & business development, will add labeled. We shall see if our law- mentioned that a newly launched consumption of sugar. Those op- makers begin to tighten up on LeClair’s duties to his busy schedule...while it may be the most expensive “Ocean Plastic Innovation Chal- posed to taxing soft drinks often city in the world in which to lease real estate, retailers continue to be unde- traceability. Several food chains lenge” wants your ideas and you cite store sales declines and job have voluntarily stepped up to terred about opening new stores in the Big Apple, particularly in its two can even earn a $500,000 prize layoffs. wealthiest counties, Manhattan and Queens. Among the most aggressive the plate to reinforce supplier and at least $1 million in invest- players to add stores over the past decade are Target and Whole Foods. verification policies. ment dollars for creative solu- Barry Scher is associated with the Target confirmed that it will open a 90,000 square foot two-story space just tions. Put your thinking caps on. public policy firm of Policy Solu- More On Recycling You have till June 11 to enter. For tions LLC and may be reached at TAKING STOCK continues on page 46 Last month I wrote about the more information, go to www. [email protected].

42 | FOOD TRADE NEWS April 2019 www.best-met.com Inspired Foods Welcomes Customers, Principals To Annual Holiday Show At Their Ocean Twp., NJ Offices

Customers from the Eastern Seaboard and Midwest were in Ocean Township, NJ April 4 for Inspired Foods’ annual This photo from the show features (l-r): Rich Durante, The holiday show held each year at their office. Ken Downey (c) Fresh Market; John Mazur, Elegant Desserts; Adam Dimat- Here we have (l-r) Warren Bell, Bell’s Bialys; Denise Pastore, of Fairway Market is joined here by Inspired Foods’ Mitch teo and Mitch Dimatteo, Inspired Foods; Andy Strevia and Give ‘n Go; John Billings, Heinen’s Grocery Stores; and Ka- Dimatteo (l) and Robert Crenshaw. Jay Mandrillo, The Fresh Market. tie Dimatteo, Inspired Foods.

Smiling for our photographer are (l-r) Frank Brenckle and Mitch Dimatteo (r) of Inspired Foods chats at the show with Andrew Cirieco (c) of Key Foods talks at the show with Julien Carol Donnoli, Kings Food Markets/Balducci’s; Mitch Di- Linda Xanthos (l) and Tony Abbatemarco, both with Food Zigliara (l) of Pidy Gourmet and Robert Crenshaw of Inspired matteo, Inspired Foods; and David Cummings, Kings Food Circus Foodtown. Foods. Markets/Balducci’s

Tom Cavanaugh (2nd from r) of Gardner Pie Co. poses for This Fairway Market foursome features (l-r) Kim Clarry, Ken Ben Rizzitello (l) of Anthony & Sons Bakery chats with Ann a photo with (l-r) Patrick Tobin, Anthony Miragliotta, Jeremy Downey, Trevor Beckford and Cinthia Reda. Marie Kane (c) and Jackie Meno of Inspired Foods. Hein and Lars Ahlquist, all with Inter-County Bakers. No Puppies. No celebrity gossip. No selfies. No recipes.

We only tweet about the important stuff.

Breaking news covering the industry from New England to the Carolinas. Follow us on Twitter @FoodWorldFTN www.best-met.com April 2019 FOOD TRADE NEWS | 43 Vivek Sankaran Is New Albertsons CEO As Jim Donald Moves To Co-Chairman Role From page 1 stores and Perkins noted that the Also upgraded has been Ac- locations, will also be refurbished. initial phase of its home delivery me’s social media presence where Perkins also updated the au- partnership with Instacart has its Facebook, Instagram, Twitter dience of some new innovative gone very well and he’s optimis- and email blasts have all been en- and technology functions that tic that as that program further hanced. Caldwell also stated that the Malvern, PA-based division develops, sales will continue to no other retailer in the market has is now deploying. Those include increase. more local and community pro- Acme’s ability to scan UPC stick- In October 2018, Albertsons grams available. Acme maintains ers on fresh bulk items and its officially took control of the large exclusive partnerships with the utilization of VisionPro, a new Lancaster Distribution Center Philadelphia Eagles and the Phil- piece of software which enables (LDC) officially based in Den- adelphia Union soccer team. Key the company to offer better visi- ver, PA. That warehouse had been community events include the bility and accuracy of production supervised by Supervalu (now Hunger Walk, Broad Street Run, logs, and to improve forecasting UNFI) since 2013 although it was Philadelphia Marathon and the and offer real time data which has owned by Albertsons. Chris Pre- XPN Music festival. Additional- helped increase sales and shrink. li, general manager, and Kristan ly, last year the Acme Foundation Perkins noted that shrink on Ac- Lewis, conversion lead, briefed Vivek Sankaran Jim Donald donated nearly $1 million to char- me’s half-gallons of milk has been the vendors on the progress of the itable programs. cross-dock functions when deal- of the media and marketing pro- reduced by 30 percent with the conversion process. The morning’s final speaker ing with milk, eggs and cigarettes. grams the retailer is involved in. help of VisionPro. The 35-year Beginning later this month, was Kim Gray, VP-marketing and Preli noted that with ownership She emphasized the growth of Ac- Albertsons veteran also detailed Preli confirmed that Acme head- merchandising for the 188-store and oversight of the LDC, Acme me’s “Just for U” personalized loy- the chain’s use of robotics at its quarters in Malvern and the Lan- chain. now can better coordinate with alty platform which was unveiled new “Broadway” store in Boise, caster DC will have aligned their Gray focused on the company’s Albertsons’ national accounting five months ago and now includes where robots are now helping ful- in-house systems. “Just for U” loyalty program, not- center in Phoenix. The longtime nearly one million registrants. fill e-commerce orders, scanning “This is very important,” said ing that members of the program Acme executive also encouraged Caldwell noted the versatility of shelves for inventory control and Lewis. “We now have one team “spend more money in our stores; suppliers to join Albertsons’ “One the program, which offers digital alerting store associates about operating on one set of systems. grow the company’s (overall) sales Network” national appointment coupons, its “Saturday Sampler” spills and missing tags. “We’re still We own the inventory which al- year-over-year; and are less likely scheduling platform which he (clippable coupons than can be primarily in a test phase, but fu- lows us and you (vendors) better to leave our program for a com- noted will provide much greater redeemed Saturday-Monday), ture opportunities will be large, access to the procurement team. petitor.” warehouse delivery efficiency. digital demos (ideal for new prod- and we need to be in that space,” In our world, more capacity He substantiated that statement Sherry Caldwell, director of uct trials and “flash sale” offers he added. means better flow.” by revealing that Acme’s elite marketing who has been with (available for only one day). She Acme will also shortly be test- During the past year, Acme has (best) shoppers maintain an 82 Acme since 2006 and at Alb- added that those promotions have ing its own curbside pickup pro- acquired a fluid milk plant (the percent retention rate. Gray also ertsons for more than 25 years, been well received by both con- gram (“Drive Up & Go) at 10 old Rosenberger’s Dairy facility) and now has full control over all provided an overview of several sumers and vendors.

BELOW IS DONALD’S INTERNAL MEMO: for Cerberus Capital Management. Bob Miller, after and advanced analytics to drive business transfor- To: Albertsons Companies Associates 58 years in the industry, has been named chairman mations. Len and his team of senior technologists emeritus and will continue to serve as a member of work closely with Cerberus investment and operat- From: Jim Donald the board of directors. Vivek was named CEO of Pep- ing professionals on targeted initiatives aimed at Subject: Albertsons Companies Appoints siCo Foods North America in December 2018. Prior improving systems and generating value from data. Vivek Sankaran President and CEO to that, he served as the company’s president and I think we can all agree that he will be an invaluable chief operating officer, a position he was named to in add as co-chairman. I’m truly excited to see what Team, 2016. Over the last 3 years, he has led Frito Lay to our company does next. I’ve said it to our division When I joined Albertsons Companies in March of industry-leading growth by remaining focused on in- presidents, our leadership team, and everyone who 2018, there were two paths in front of me waiting to novation, technology and execution. Over his ten-year will listen that, simply put, the small moves we are play out: helping to shepherd the integration of a Rite Aid-Albertsons Companies combination into 2019 career at PepsiCo, in addition to leading Frito-Lay, making are adding up. The industry may think that and beyond or helping further lead our already-solid Vivek also served as the chief commercial officer for we’re playing catch up with eCommerce, Drive Up and company toward the future in both the four wall and PepsiCo North America, chief customer officer of Fri- Go, and third-party agreements, but when we look at no wall environment and tell our story more broadly. to Lay, and as the senior vice president of strategy for the whole picture, we’re changing the game for cus- Just over a year later, we know which path the com- PepsiCo. Before joining PepsiCo in 2009, Vivek was a tomers in small, simple ways that I’m confident will pany took, and as I took on the role of overseeing the partner at McKinsey and Company, where he served add up to our being the company that everyone wants daily operation of our company, I also made finding various Fortune 100 companies bringing a strong fo- to catch up to in the next few years. I am excited my successor a high priority. When you look for a suc- cus on strategy and operations. He co-led the firm’s about our progress and I look forward to what we’ll cessor, you find someone who embraces your vision North American purchasing and supply management accomplish. Our commitment to Making Every Day and then has the capacity to take it to a whole new practice and was on the leadership team of the North a Better Day for our people, customers, community level. This morning, we announced that Vivek San- American retail practice. Vivek has an MBA from the and company remains our priority. With 270,00 tal- karan has been appointed president and chief exec- University of Michigan, a master’s degree in manu- ented associates serving 34 million customers each utive officer of Albertsons Companies, effective April facturing from Georgia Institute of Technology and week across our nearly 2,300 stores and 5.5 mil- 25, 2019. With this change, I’m going to take on the a bachelor’s degree in mechanical engineering from lion customers in our 1,700-plus pharmacies, we’re role of co-chairman of the board. I’ll be serving along- the Indian Institute of Technology in Chennai. My well positioned to serve the evolving food, health and side co-chairman Len Laufer, who was named to our co-chairman Len Laufer leads Cerberus Technology wellness needs of today’s customer in our four wall/ board of directors last fall and is a senior managing Solutions, a subsidiary of Cerberus that is focused no wall company. Thank you for all you do every day director and head of transformation and technology exclusively on leveraging emerging technology, data, to help our teams run great stores.

44 | FOOD TRADE NEWS April 2019 www.best-met.com ALBERTSONS/ACME and president of Safeway’s East- food business, but also with his about our progress and I look Sankaran also served as the chief From page 44 ern division (1994-1996, prior to ability to work with and develop forward to what we’ll accomplish. commercial officer for PepsiCo Albertsons acquiring it) as well people,” said Miller. “I couldn’t be Our commitment to ‘Making Ev- North America, chief customer called on the vendors in atten- as helping to develop and expand happier to leave Albertsons Com- ery Day a Better Day’ for our peo- officer of Frito Lay, and as the se- dance to bring in their leadership the SuperCenter concept while at panies in Vivek’s hands.” ple, customers, community and nior VP of strategy for PepsiCo. teams, stressing the importance of Walmart (1991-1994). In an internal memo from company remains our priority.” Before joining PepsiCo in 2009, top-to-top meetings. He pointed “When I joined Albertsons Donald (published at the end of Sankaran was named CEO of Sankaran was a partner at McK- to meetings with Kraft/Heinz and Companies in 2018, I found a this story) detailing his depar- PepsiCo Foods North Ameri- insey and Company, where he Utz as examples where top-to-top company that had a strong decen- ture, he noted “the industry may ca in December 2018. Prior to served various Fortune 100 conferences led to programs that tralized operating model, a fan- think that we’re playing catch up that, he served as the company’s companies, bringing a strong fo- resulted in increased sales. tastic leadership team and incred- with eCommerce, ‘Drive Up and president and chief operating of- cus on strategy and operations. In closing, Gray, who came ible potential to be the four-walls Go,’ and third-party agreements, ficer, a position he was named Sankaran has an MBA from the to Acme in 2015 and has been and no-walls leader in the grocery but when we look at the whole to in 2016. Over the last three University of Michigan, a master’s with Albertsons for more than industry,” said Donald. “Over the picture, we’re changing the game years, he has led Frito Lay to degree in manufacturing from the 30 years, concisely listed Acme’s past year, our team made our for customers in small, simple industry-leading growth by re- Georgia Institute of Technology goals: “It’s still about sales, sales, company’s nearly 2,300 stores ways that I’m confident will add maining focused on innovation, and a bachelor’s degree in me- sales and we’re shooting for 5 even stronger as we sharpened our up to our being the company that technology and execution. Over chanical engineering from the percent ID sales. We will sup- focus on the intersection of tech- everyone wants to catch up to in his 10 year career at PepsiCo, in Indian Institute of Technology in port those efforts by offering the nology and service. I’m looking the next few years. I am excited addition to leading Frito-Lay, Chennai. types of prices and promotions forward to the continued prog- designed to sell cases. We will ress of the company under the also provide consistent store con- seasoned leadership of Vivek. We ditions and strong in-stock posi- continue to be well-positioned to tions. Partner with us to reach our serve the evolving needs of today’s common goals,” he urged. customer, where, how and when Advertise with us online Not surprisingly, it was a very they choose to shop with us.” professional performance by the Continued Donald, “Vivek brings and hit your target. five presenters, all achieved in 90 a rare blend of CPG, retail, man- efficient minutes. ufacturing, logistics, technology, Back at Albertsons’ headquar- and research and development It’s that simple. ters in Boise, the transition to an- to Albertsons Companies, all of other CEO will begin shortly. which are key components to Jim Donald will join Cerberus being a successful retailer in an Capital Management’s Leonard omni channel-driven environ- Laufer as board co-chairmen. ment. Moreover, Vivek has the Cerberus owns controlling inter- keen understanding that the front est in Albertsons and has made line is directly linked to the bot- it clear that it wants to exit from tom line, and I’m confident he will its investment (originally made in inspire and engage our 270,000 2016) by taking Albertsons pub- associates across our stores, sup- lic. The company’s longtime lead- port offices, manufacturing fa- er Robert Miller has been named cilities, and distribution centers.” chairman emeritus and will con- “It is a great privilege to join tinue to serve as a member of the a company that has such deep board of directors. roots in American retail,” said Donald, 65, rejoined Albertsons Sankaran. “Albertsons, Safeway, (his first stint at the company was Vons, Jewel Osco, Shaw’s, Acme, from 1976-1991) in March 2018 to Tom Thumb, Randall’s, United serve as president and COO of the Supermarkets, Market Street, Pa- company ahead of the anticipated vilions, Star Market, Haggen and merger with Rite Aid. When that Carrs – all of these banners and deal collapsed, the board named more in the Albertsons Compa- Contact Karen Fernandez the veteran retail executive as nies family of stores have hun- CEO in September. Prior to that, dreds of years of combined his- [email protected] Donald served as chief execu- tory. Our stores are integral to tive of Extended Stay America, a the lives of millions of customers large U.S.-based hotel chain, from each week. I’m excited to build 443.765.1575 2012 to 2015. From 2009 to 2011, on the legacies of past CEOs Bob Donald was president and CEO Miller and Jim Donald who both of food and pharmacy retailer laid a solid foundation for success Haggen, Inc. From 2002-2008 he and look forward to working with was with Starbucks, leading the our associates to realize the op- company through a period of portunities and navigate the chal- growth, working his way up from lenges in our evolving industry.” president of its North America “I’ve known Vivek for many years. division to president and CEO of He has always impressed me, not the large Seattle, WA-based coffee only with his exceptional work at chain. Donald also served as CEO Frito-Lay in managing the many of Pathmark Stores (1997-2002) facets of a multibillion-dollar www.best-met.com April 2019 FOOD TRADE NEWS | 45 ssssssssssssssssssssssssssssss TAKING STOCK From page 42 off the Belt Parkway in south Brooklyn. That site formerly held a Toys“R”Us and Babies“R”Us. And according to several published re- ports, Whole Foods (WFM) is negotiating a deal to occupy 50,000 square feet of space in the cavernous new Hudson Yards development on Manhattan’s West Side. The store would be located at 10th Avenue and 33rd Street. Whole Foods has also opened a “daily shop” adja- cent to its store at 7th Avenue & W. 25th Street in the toney Chelsea neighborhood. Merchandised like a gourmet c-store, the new concept features grab-and-go fresh items as well several NYC brands such as Balthazar breads, Gotham Greens and Dunwell Doughnuts. Of course, the big WFM news of the month is that the “good for you” retailer has reduced prices on more than 500 items and parent company Amazon has expanded grocery deals for its Prime members as part of the dis- count program. Many of the items are in produce and meat, but after the last round of cuts, I’m skeptical since the price reductions were more flash than substance. And in our price checking research over the past year, nobody has raised prices more than WFM has (although to be fair, with inflation, virtually all retailers have raised their everyday retails). We’ll get out our comparative price book and let you know if this round of reductions is actually more filling and taste great. New GIANT/MARTIN’S RECENTLY DONATED 3,000 HAMS TO FOOD BANKS THROUGHOUT ITS MARKETING Jersey joins the city of Philadelphia in not allowing stores that sell food area in time for Easter, including 250 to Philabundance. At the presentation made at the Philabundance to operate on a cashless basis. And while it seemed that these new offices in Philadelphia, were (l-r) Scott Smith, Philabundance; Mickey Morandini, retired second baseman statutes were primarily directed against Amazon’s “Go” convenience for the Philadelphia Phillies, a partner of Giant; and Aaron Abrams III, Giant’s Grant Avenue, Philadelphia stores, Godzilla has changed its mind and will begin accepting cash store manager. payments, clearly as a response to these and other future cashless store bans. For as ultra-progressive as Governor Phil Murphy claims to be, restricting free enterprise is about as reactionary as it gets. More legislative news: the New York state legislature and Governor Andrew Cuomo have agreed to implement a statewide ban on most single-use plastic bags as part of the Empire State’s $175.5 billion budget for 2020. Beginning next March, most retailers, including grocery stores, mass merchandisers and other mainstream merchants, will no longer be able to dispense plastic bags. Additionally, the new legislation would allow individual counties and cities to impose a 5-cent fee on paper bags…some more new stores to report: Redner’s cut the ribbon this month on its first “fresh market” on Berkshire Boulevard in Wyo- missing, PA. That store was converted from a conventional Redner’s unit…in a story we reported on last year, Stew Leonard’s officially broke ground on what will become the upscale independent’s first New Jersey store (and seventh overall). The new 80,000 square foot store will be located in the Paramus Park Mall in Paramus…Price Rite Mar- ketplace has remodeled and rebranded five Connecticut stores. Those Nutmeg State discount units are located in Cromwell, New Britain, ROUTES AVAILABLE West Hartford, Wethersfield and Windsor, and follow in the footsteps of Price Rite’s upgraded model rolled out last October in three Pennsyl- SEEKING INDEPENDENT DISTRIBUTORS vania stores. The upgraded stores feature lower prices, more organic products and a “Drop Zone” area featuring strong deals, surprise buys For Direct Store Delivery to Grocery Stores with most products priced at $5 or less…Sprouts has announced its new store openings for the second half of 2019. Of the 13 units listed, Routes Available in: Boston, MA • Albany, NY • Northern VA • Maryland two are in the Mid-Atlantic – Bel Air, MD and Herndon, VA. Sprouts will Call Paulo Lopez 301-573-9683 also open its first New Jersey store on June 5 in Marlton…Ahold Del- haize USA’s, service hub Retail Business Services (RBS) has rolled out a new replenishment and forecasting system. Relex Solutions, with offices in Atlanta and London, developed the system, which has been testing it for more than a year at Food Lion and Hannaford’s fresh distribution centers. “By implementing this game-changing solution, Retail Business Services is further enabling Ahold Delhaize USA’s local brands to deliver on their ambitions to be there for their customers anytime, anywhere with the freshest products,” said Chris Lewis, exec- www.best-met.com food news you can use utive VP-supply chain for RBS. “Not only will it provide local brand stores with the flexibility they need to best serve their customers, it will

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46 | FOOD TRADE NEWS April 2019 www.best-met.com ssssssssssssssssssssssssssssss TAKING STOCK Are You Reaching Your From page 46 Food & Drug Customers enable a complete supply chain transformation at a time when cus- tomer expectations are rapidly changing the way groceries are bought, In This $200 Billion sold and delivered.” We’re hearing some pushback from suppliers and brokers about Stop & Shop’s request to add more vendor labor as it Marketing Area? continues to roll out an ambitious store remodeling plan. In an internal memo co-signed by Kerri Aguilo, senior VP-category management; Da- Out of Region Companies Receiving vid Bass, senior VP-merchandising; and Marwan Fakhouri, merchan- dising acceleration lead, Stop & Shop is seeking to add 100 addition- FOOD WORLD & FOOD TRADE NEWS: al reset team members “to ensure that the shelf management needs Ahold Delhaize, Amsterdam, The Netherlands for all stores are met. We will use our traditional Fair Share Billing ap- proach to allocate these incremental staffing costs, which will take Albertsons Companies, Boise, ID effect in early 2019. We think it is important to share this information Aldi, Batavia, IL with you as early as possible for you to effectively update your finan- Amazon, Seattle, WA cial planning and budgets.” Stop & Shop began its store remodeling Costco, Issaquah, WA program last October with five Connecticut stores and plans to spend Kroger, Cincinnati, OH approximately $150 million shortly to upgrade its 51 Long Island stores. By 2023, Stoppie expects to have all 412 stores remodeled at Sam’s Club, Bentonville, AR a cost of $1.6-$2 billion…we have a several obituaries to report this Save-A-Lot, Earth City, MO month including the passing of Kelly Tobin, daughter of Bob and Au- Sprouts, Phoenix, AZ drey Tobin. Bob is the former CEO of Ahold USA and one of the finest Supervalu, Eden Prairie, MN people to ever serve the grocery industry. I’m very sorry for their loss… one of the music industry’s unsung greats has also left us. Dick Dale, Target, Minneapolis, MN the guitar player who pioneered surf music in the early 1960s, has Trader Joe’s, Monrovia, CA died at the age of 81. Armed with a Fender Stratocaster and an array Wal-Mart, Bentonville, AR of customized amps and speakers, Dale perfected a sound that had Walgreens, Deerfi eld, IL peaked by the mid-60s but saw a resurgence 30 years later after Whole Foods, Austin, TX Quentin Tarantino used Dale’s version of “Misirlou” in the opening credits of his iconic film “Pulp Fiction (1994).” Despite many health 7-Eleven, Dallas, TX problems, Dale continued to tour until early this year…and “that guy” character actor Seymour Cassel has also died. Cassel, 84, appeared in more than 200 film and TV roles and received an Academy Award nomination for “Faces” (1968), a movie directed by the late John Cas- savetes. All told, Cassavetes used Cassel in five of his movies. Cassel later enjoyed a similar relationship with director Wes Anderson, ap- pearing in three of his films including the hilarious black comedy, “The Royal Tenenbaums” (2001). Other movies where Cassel had promi- nent roles included “Dick Tracy” (1990); “Honeymoon in Vegas” (1992);” and “Indecent Proposal” (1993)…Clem Daniels, 83, has also passed. Now you have to go back, way back in the sports annals to remember Daniels. But if you’re a football fan over the age of 60, you might remember the Prairie View A&M alum as an excellent running back for the Oakland Raiders dynasty teams of the old American Foot- ball League. And if you dug a little deeper, you’d find that Daniels was a four-time Pro Bowl selection who played seven seasons for the Raid- ers (1961-1967, which included an AFL championship in ’67). And before the 1970 AFL-NFL merger, Clem Daniels held a record which will never be broken, most career rushing yards – 5,103 – in the histo- ry of the AFL… Dan Robbins, 93, has also passed on. You may not have heard of Robbins, but you probably know his claim to fame. An artist by trade, Robbins was the creator of paint-by-numbers. While working at the Palmer Paint Company in Detroit, he came up with the idea in the late 1940s, claiming that he was inspired by Leonardo da Vinci. Early versions of his creations didn’t sell well, but as Robbins and the company he worked for, Craft Master, broadened their offerings to in- clude landscapes, animals and portraits, sales quickly took off and peaked at $20 million in 1955. In his 1998 book, “Whatever Hap- pened To Paint-by-Numbers?” Robbins explained his success: “I never claimed that painting by number is art. But it is the experience of art, and it brings that experience to the individual who would not normally pick up a brush, not dip it in paint. That’s what it does.” Personally, I have to admit that Dan Robbins was good, but he was no Bob Ross. But then again, who is? FOR MORE INFORMATION, VISIT US AT WWW.BEST-MET.COM

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