Michigan's Beverage Industry
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Associated Food Dealers BULK RATE 18470 W. 10 Mile Rd. U.S. Postage Southfield, Ml 48075 PAID Permit No. 36 Address Correction Requested Detroit, Ml VOL 9. NO. 11 An official publication of the Associated Food Dealers of Michigan and its affiliate, Package Liquor Dealers Association Working hard for our members. TV tale of “Tony Michigan’s Beverage Industry: Coupons," a message from Chairman Bill What we’re drinking for the holidays Viviano 'p age 3 by Michele MacWilliams With the holiday season fast approaching, liquor sales will skyrocket. Consumption of spirits nearly double in Electronic Benefits December, over the lows of January, February and August (see related graph). So what’s hot for the holidays? Transfer available for According to the Michigan Liquor Control Commission, we prefer vodka, which took three of the top five spots on WIC * page 5 Michigan’s top selling spirits list: GAP Market, a familiar 1. Popov vodka name in Royal Oak for 50 2. Bacardi Light dry rum years * page 6 3. Absolut vodka 4. Smirnoff vodka 5. Seagram's Extra Dry gin Nationwide, the top call brands of 1998 are: State gets 1. Absolut 2. Bacardi federal money 3. Dewars 4. Jack Daniels for fight 5. Tanqueray 6. Stoli against 7. Ketel One 8. Captain Morgan tobacco sales 9. Smirnoff 10. Jose Cuervo to m inors The Beverage Journal, a trade magazine for the beverage industry, asked readers to name the best Michigan received a performing new brands in their local marketplaces. $650,000 contract from the While some of the brands they nominated have been U. S. Food and Drug around for a while, they have been rejuvenated and Administration to conduct retailers consider them “hot,” at least for this year. 6,482 unannounced tobacco The up-and-coming stars of the spirits world are: buys at retail stores. This is to help enforce the Belvedere, Stoli Flavors, Grey Goose, Alize and law that went into effect in Tequila Rose. February 1997 making it Among wines, the consumer is speaking very illegal to sell tobacco directly with purchases of a specific brand from products to minors and among a world of selections. While by-the-glass requiring store clerks to wine servers account for a large number of the photo identification of Beverage Journal’s survey responses, by-the-bottle anyone who appears younger merchants generally agreed with their choices for than 27. Retailers will 1998’s potentials: Forest Glen, Turning Leaf and receive information packets Concha y Toro were the top three wineries. from the state prior to Kristen Tuinstra, assistant editor of the Michigan beginning the federally Beverage Journal, says a hot item for the holidays funded compliance checks in will be the new Pucker line by Jim Beam. The tart and November. tasting liquors come in Sour Apple, Cheri-Beri and Retailers found in Grape and Tuinstra believes they’ll liven up beverage violation will get a warning sales. Also hot will be the ever-popular Jack Daniels for their first offense, a $250 Single Barrel, packaged for the holidays. fine for their second offense; a $1,500 fine for the third Beer manufacturers are also planning to take a piece of the holiday beverage sales pie with special a $5,000 fine for the and a $10,000 or the packaging and holiday promotions. fifth offense The state will With strong sales predicted, it looks like it will violators by mail. indeed be a Merry Christmas for beverage retailers! Visit our Web site at: http://w ww.cstorecentral.com/afd.htm 2.....AFD FOOD & BEVERAGE REPORT, NOVEMBER 1998 OFFICERS Bill Vivtano, Chairman House of Prime Fred Dally, Vice Chairman Future Planning Medicine Chest Sam Dallo, Vice Chairman The tale of “Tony Coupons Legislation In 'N' Out Foods. Region 4 Terry Farida, Vice Chairman and other criminals Value Center Markets Gary Davis, Treasurer Tom Davis & Sons Dairy Co. Ronnie Jamil, Secretary These convicted Philadelphia area yearly in coupon fraud, the Mug & Jug Liquor Store supermarketers might have been manufacturing and law enforcement EMERITUS DIRECTORS quietly scamming along to this day if empires are striking back. Mark Karmo the long arm of coincidence hadn't Bud Miller, operations manager for Royal Food Center intruded into their schemes. the Coupon Information Center, said Nabby Yono Sarmousakis was part of the the crown jewel of coupon fraud XTRA Foods. Orchard Food Center Frank Arcori coincidental discovery. scams he knows of was in South V. O. S. Buying Group He was an IRS agent then, with the Florida and netted as much as $44 Amir Al-Naimi million over 12 years. Larry Joy-Thrifty Scot Criminal Investigation Division. Sam Yono There was a routine criminal tax Krasnick, the organizer known as the Palace Plaza investigation of an individual who “Coupon King,” did a year for owned a supermarket. While racketeering, organized fraud and RETAIL DIRECTORS by B ill Viviano conducting the audit, the IRS agent grand theft in the late '80s. Jim Garmo AFD Chairman Galaxy Foods. Region 2 Krasnick and his gang wouldn't The tale of ‘Tony Coupons” was noticed people walking into the store Richard George with brown shopping bags and have been caught except they got Wine Barrel Plus reported recently in the Youngstown coming out empty-handed. Was it a greedy and expanded too fast, says Raad Kathawa Area Grocers Association Newsletter. Ryan's Foods. Region 1 Miller. Almost 200 people were However, its relevance is nation-wide drug drop? A money laundering Alaa Naimi scheme? The owner was confronted convicted of fraud, which made it the Thrifty Scot Supermarket and Tony's fate should be told to all Alan Stotsky grocers, across the country. and talked about a coupon scam. The largest criminal case ever handled by Concord Drugs. Region 6 It seems that there is a grocer in store owner died prematurely, but not the Florida state courts. Thomas Welch before he had identified others. So who gets hurt by these Hollywood Super Markets Fishtown, a section of Philadelphia, Two separate investigations in the Brian Yaldoo who is still called ‘Tony Coupons.” fraudulent acts? The bottom line is Woodward Long Lake Shell Philly area discovered coupon fraud that we all arc hurt because the losses Jerry Yono Although he was nailed in a coupon Cheers Party Store scam way back in the early '80s. his schemes that netted between $1 find their way to prices on our Chris Zebari nickname has stuck. Tony spent almost million and $12 million each. Other shelves. New Hudson Food Market two years on work release; he would cases were between several hundred When asked if he thinks coupon SUPPLIER DIRECTORS work in the store during the day and thousand dollars and $1 million. fraud will continue, Sarmousakis says Al Chittaro spend his nights in jail. Sarmousakis says that the typical case he doesn't think it will ever be totally Faygo Corp. The one man who may know more is usually in the $1.5 million to $2 eliminated. However newer laws that William B Jones million range. impose stricter fines and longer jail Anheuser-Busch. Inc about Philadelphia coupon fraud than Asked how long coupon scams Ron Paradoski anyone is Assistant United States sentences help. Another deterrent is Strohs/Mooney Ice Cream Attorney Paul Sarmousakis. Close to have been going down. Sarmousakis the IRS. When the Justice Department Mike Rosch answers with a question of his own: is finished handing out its sentence, the General Wine & Liquor Co. 70 individuals have been convicted for Cal Stein coupon fraud in Philadelphia, most of “How long have there been IRS is waiting in the wings. Sales Mark. Region 5 coupons?” them coupon brokers and their Sarmousakis says it is a rare instance Barbara Weiss-Street It is a very simplistic scheme. where there is coupon fraud without The Paddington Corporation henchmen. All the operators convicted Nothing simpler - retailers get in Philadelphia have been lax evasion. There are back taxes, AFD STAFF & CONSULTANTS independents, according to coupons in their hands, send them interest and huge penalties to deal Sarmousakis. They were mainly single away and money comes back. The with. Is it worth the risk? If you asked Joseph D. Sarafa store operators, and as one retired retail complexity is in hiding the scheme. Tony Coupons - who has had to live President and Publisher And hiding the scheme is getting Judy Shaba executive once said of the temptation of more than a decade with that nickname Services coupon fraud: “It’s like putting $50 in harder and harder because with over - he would probably say “If you can’t Daniel Reeves $1 billion lost by manufacturers do the time, don’t do the crime ” Deputy Director every Sunday paper.” Cheryl Twigg Office Manager Elizabeth Arbus Executive Assistant Sylvia Youhana Membership Representative Danielle MacDonald Trade Show Sabah Brikho Membership Sales Harley Davis Coupons Ruel Williams Community Relations Ray Amyot Advertising Tom Amyot Special Events and Advertising Karoub Associates Legislative Consultant Gadaleto & Ramsby Health Care James Bellanca Jr. Bellanca. Beattie & DeLisle Legal Counsel Jerry Urchek CPA Minding the store Michele MacWilliams Metro Media Associates. Inc. Public Relations. AFD Food & Beverage Report Editor By Matt Chisholm AFD FOOD & BEVERAGE REPORT, NOVEMBER 1998 3 Calendar November 5-6 Category Management - The Basics A Win for Workplace Safety Philadelphia, PA (202) 452-8444 Small businesses benefit from new OSHA laws November 8-11 Retail Store Development Conference underfunded and ignored programs in of U.S. businesses to provide a safe Sponsored by FMI and FDI OSHA’s history. Sometimes workplace. Not only does a San Antonio, TX employers have to wait more than a workplace accident or negligence (703) 532-9400 year for requested assistance, maybe harm an employee, but it can greatly even two, which denies employees harm a company’s reputation.