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

An official publication of the Associated Food Dealers of Michigan JUNE 1997 and its affiliate, Package Liquor Dealers Association Inside

Make way for OPALs - America gobbles snacks at record rates Learn what older people expect from retailers from traditional favorites. However, the Page 3 The study of consumer former have not cannibalized the latter; Anthony’s Old World snacking behavior from rather, “better for you” snacks are Market positions itself the Consumer Snacking for new world sales bringing the incremental growth to the Behavior Report reveals Page 8 category because they’re being — above all— a paradox, Turning Unsaleables into purchased largely by consumers who which is this: in an era of Opportunities may not have previously bought snacks. heightened health Page 12 Traditional snackers still want their consciousness, regular snacks, although there is some consumption of snack substitution of low-fat for full-fat foods is at record levels occurring. and rising. This trend is supported by data This phenomenon is Michigan moves collected for this study which indicate closer to EBT explained, in part, by the growth in reduced-fat, low-fat, that the low-fat snack segments are not well developed. and no-fat snacks. (Industry sources say the market for (Only pretzels and popcorn are perceived as “okay” or implementation these products grew at a rate of 20 percent in 1994, and is “good for you" ) Rather, growth in the snack industry Recently representatives now the fastest-growing segment of the snack category.) relies more on constant new product innovations — both of the State of Michigan met However, reduced-fat, low-fat, and no-fat snacks in reduced-fat and full-fat snacks — that offer variety and with the retail community to (excluding pretzels and popcorn, which are inherently excitement and at the same time appeal to consumer discuss plans for low in fat) still only represent approximately five percent expectation for taste and overall satisfaction. implementation of an of snack category sales. That’s not to say that the lower-fat snack trend isn’t here electronic benefits transfer What this suggests is that growth in the snack category to stay, especially as manufacturers improve on taste. (EBT) system for several is coming both from new low-fat and no-fat products a n d See Snacks, page 32 state assistance programs including cash assistance, food stamp and WIC programs. Invitations to bid on the implementation project were sent to qualified EBT service providers with an April 18 due date for return of Proposals. The organization whose bid is accepted will provide a minimum three month demonstration of the system, beginning January It’s time to 1,1998, within Jackson County. Upon successful head for the implementation of the driving range county-wide test, the Get ready for the Program will be expanded AFD 1997 Scholarship state-wide under a seven Who is Michigan’s Golf Outing! Thursday years contract Currently, Best Bagger? July 24, 1997 at the Maryland, New Mexico, Wolverine Golf Course. South Carolina. Texas and There’s only one way to find out, For more information Utah are the only states enter the 1997 Michigan Best sec page 15 or call operating state-wide Bagger Contest! Tom Amyot at AFD programs. Monday, June 30, 1997 Tel/Twelve Mall, Southfield (248) 557-9600. More Legislative Updates Details on page 27 FOOD & BEVERAGE REPORT. JUNE 1997 ... It's back and it's definitely in action. This Stuff is even cooler than before, with new, active sports gear you can use all year long. And this time, there's a new twist that takes Stuff over the top.

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2.....FOOD & BEVERAGE REPORT, JUNE 1997 Executive Director’s Report Mark Karmo, Chairman Royal Food Center Golden Valley Supermarket Bill Viviano Vice Chairman. Future Planning House of Prime Sam Yono Vice Chairman. Legislation, Palace Plaza Ronnie J. Jamil Vice Chairman, Membership Mug & Jug Liquor Store Move over YUPPIES Terry Farida Treasurer. Value Center Market Sam Dallo Secretary, In 'N' Out Foods, Region 4 and DINKS, make way Nabby Yono XTRA Foods, Orchard Food Center Frank Arcori V.O.S Buying Group Amir Al-Naimi Joy-Thrifty Scot for OPALS Tom Simaan Lafayette Park Supermarket

Fred Dally Medicine Chest Jim G arm o important consumer? What am Galaxy Foods, Region 2 I doing to make my business Richard George Wine Barrel Plus senior-friendly? Here are a few Raad Kathawa guidelines: Ryan s Foods, Region 1 Alaa Naimi Reputation - OPALS are very Thrifty Scot Supermarket Alan Stotsky likely to use the services of an Concord Drugs, Region 6 organization such as the Better Thomas Welch Hollywood Super Markets Business Bureau to check the Brian Yaldoo history or reputation of a company Woodward Long Lake Shell seniors - You should consider Jerry Yono before they decide to do business. D & L Market using older models in your They will also steer clear of advertising or placing your ads in businesses that do not have a good Al Chittaro media that appeal to older readers, Faygo Corp. reputation. G ary Davis You remember the YUPPIES. listeners and viewers. Tom Davis & Sons Dairy Co. Service after the sale - It Denny Otto (Young Urban Professionals) and OPALS also resent any form of behooves you to review your post- Spartan Stores, Region 3. the DINKS, (Double Income, No deception and make no mistake, Ron Paradoski sale procedures to ensure that Strohs/Mooney Ice Cream Kids). Both groups have had their they can spot it in an instant. They Mike Rosch contact is made with your senior General Wine & Liquor Co. fair share of the economic know you can’t guarantee lowest customers. Recognize them when Cal Stein spotlight in the recent past. prices. And don’t be afraid to ask Sales Mark, Region 5 they come through your door. Ask Barbara Weiss-Street Now it appears the spotlight, directly for their business. Above The Paddington Corporation how they liked the products they especially where the marketplace all, remember we’re all getting Chris Zebari purchased during their last visit ______Pepsi-Cola Company is concerned, has shifted to the older. Common, old-fashioned and offer your help and OPALS; Older People with courtesy and respect goes a long suggestions. Joseph D. Sarafa Active Lifestyles, whose buying way with all customers, especially Executive Director & Publisher Guarantee or warranty of the Judy Mansur power is something to consider. the ever-increasing group of product or workmanship You Services This shift should certainly come OPALS. Daniel Reeves should offer to stand behind your Deputy Director as no surprise. As the baby Cheryl Twigg products, and DO IT! Office Manager boomers age, we must begin to NEW AREA CODE Being made comfortable in Elizabeth Arbus look at the “graying of America' Those of you who are not within Executive Assistant the shopping environment - Arc Sylvia Youhana Today, the U.S. population lives the metropolitan Detroit area may your younger sales people trained Receptionist longer, stays working longer, is not know that most of Oakland Danielle MacDonald to work with seniors? If not, get Trade Show more mobile and spends more county now has a new area code: Sabah Brikho them trained! Is your store Membership Sales money in their golden years than 248. For the next few months, handicapped accessible? Do you Harley Davis any other age group. both 810 and 248 will work when Coupons provide motorized shopping carts Ruel Williams Estimates tell us that the calling Oakland county phone Community Relations for those who may need them to average discretionary income of numbers. Then, in September only Ray A m yot get around? Advertising the 65+ set is $6,000. twice that of 248 will work. For a list of Tom Am yot Overall thoughtfulness - Is Special Events the 25 to 29-year-old bracket. telephone number prefixes that are your signage easy for older eyes to Eric Ham Since OPALS easily represent the affected, call Ameritech at 1-800- Harmony Project read? Is the store easy to navigate Karoub Associates fastest growing segment in the 831-8989. It’s a good idea to Legislative Consultant through? Is there a place to sit and marketplace, you, as a business change your personal phone Gadaleto & Ramsby rest? These are all important Health Care owner or manager, should be books, phone and fax programs to James Bellanca Jr. concerns. Bellanca. Beattie & DeLisle asking these questions: What is avoid confusion later. AFD's Legal Counsel Advertising that appeals to Jerry Urchek my business doing to attract this number is now (248) 557-9600. CPA Michele MacWilliams Metro Media Associates. Inc. Your opinions are important to us! Call AFD at (248) 557-9600 or (800) 666-6AFD. Public Relations. ______Or write to us at 18470 West Ten Mile Road, Southfield, Ml 48075. AFD Food & Beverage Report Editor

FOOD & BEVERAGE REPORT, JUNE 1997 .... .3 Calendar Guest Editorial June 30 Michigan Best Bagger Contest Hosted by Associated Food Dealers of Michigan and A message of caution to Michigan Grocers Association Tel/Twelve Mall, Southfield (248) 557-9600 retailers July 24 AFD's Annual Scholarship Golf O u tin g Wolverine Golf Course, Macomb Operation NicNet aims to prevent (248) 557-9600 underage smoking by Robert A. Ficano, August 20 Wayne County Sheriff work-release program for selling Action Distributing's cigarettes to minors. 20th Anniversary Ben Celani Retail merchants of Wayne Our major effort through G olf Day Benefit (313) 591-3232 County who sell cigarettes to NicNet is supported by several underage customers could face a responsible tobacco retailing September 7-8 misdemeanor charge and a fine organizations and I am especially Kramer Food Show of up to $250. Repeat grateful to the Associated Food Novi Expo Center, Novi convictions could result in the Dealers of Michigan for co- (810) 585-8141 revocation of permits to sell sponsoring an awareness campaign tobacco. through Public Service September 14-16 Under my leadership, Announcements. Joe Sarafa, AFD FM I's MealSolutions 97 Operation NicNet was created. It Executive Director, was most Los Angeles Convention Center. Los Angeles is a preventative law helpful in coordinating this effort. (202) 452-8444 enforcement effort between the Presently, each precinct in the Wayne County Sheriffs tobacco products, and ask for City of Detroit has been checked October 19-23 Department, the Wayne County identification from customers. at least once, and enforcement has National Frozen Food Health Department, the Michigan The irresponsible retailers choose expanded to the Downriver C o n v e n tio n Department of Community to do otherwise. communities of Wayne County Las Vegas Health, the City of Detroit Health Clearly, merchants selling We intend to conduct compliance (717) 657-8601 Department and others. tobacco products to minors are checks throughout the County. Operation NicNet is designed breaking the law. The criminal Teenage smoking is not viewed to utilize decoys in randomly justice system does not take by police as a “rite of passage.” Statement of Ownership selected areas. Many merchants violations of the youth tobacco Buying cigarettes is not a The Food & Beverage Report realize the responsibility that laws lightly. In March, a 36th consumer option for anyone (USPS 082-970; ISSN 0894-3567) is accompanies the selling of District Court judge sentenced younger than 18. published monthly by the Associated three Detroit retail clerks to a jail Food Dealers at 18470 W. 10 Mile, Southfield, Ml 48075. Material con­ tained within The Food & Beverage State sets up Report may not be reproduced without written permission from the AFD. sanitation conflict The opinions expressed in this maga­ resolution program zine are not necessarily those of the AFD, its Board of Directors, staff or The Michigan Department of members. Bylined articles reflect the Agriculture has recently developed a opinions of the writer. method of conflict resolution. POSTMASTER: Send address Owners, operators and managers of changes to Food & Beverage Report, food service establishments should 18470 W. 10 Mile, Southfield, Ml 48075. feel free to call the MDA food service ADVERTISERS: For information on sanitation program to discuss any advertising rates and data, call AFD, issue at anytime. Ray Amyot, 18470 W. 10 Mile, South- The MDA will contact the local field, Ml 48075, (810) 557-9600 or health department having jurisdiction (517) 386-9666. to inform them of any discussions AFD works closely with the following relative to the conflict. The local associations: health department will then investigate the matter and report their findings to the MDA. If the conflict cannot be resolved, the MDA will initiate a third party investigation; either on-site or verbally. The MDA will decide the issue through proper interpretation and inform the local health department and the complainant of the decision in writing . Both parties will agree in advance to accept the final decision by the MDA.

4.....FOOD & BEVERAGE REPORT, JUNE 1997 1st National Bankcard Service

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Self-feeding dot matrix printer uses expanded rolls that print 3.200 4" custom FNB Center paper receipts 2595 Stearns St Simi Valley, CA 93063 User-friendly Verifone with easy to Phone (805) 527-3747 understand instructions and screen display Fax (805) 527- 5285 Snack Foods Detroit Popcorn Stroh’s and Sanders present creates new gourmet ice cream flavors For the expresso lovers, Detroit Popcorn has introduced six different coffee flavored popcorn varieties under the Dreamy Com Two of Detroit’s favorites, Hot Fudge), Butterscotch label: French vanilla, Chocolate Stroh's and Sanders, have teamed Caramel Sundae, (again with Capuccino, Chocolate Grand up to present a unique line of Sanders own topping), BUMPY Marnier, Chocolate Irish Cream, premium ice cream flavors. After Cake N’ Cream, (buttercream Chocolate Amaretto and Chocolate a year and a half of development, flavor ice cream with fudge and Mocha. Sanders and Stroh's have together cake), Sanders Old Fashioned And for the candy lovers. created the all new “Homemade Golden Vanilla (made the Detroit Popcorn has Dreamy Com lee Cream" line, which will original Sanders way), Sanders fruity flavored popcorn packaged replace the Stroh's 1919 Brand Old Fashioned Butter Pecan in clear, round tubs. Made with line. The new flavors will debut (the Sanders way loaded with white chocolate, the creamy in stores later this month in half products at ice cream parlors pecan halves), plus a new textured popcorn comes in gallons. “We were looking for a throughout the metro Detroit area Cookies N’ Cream, Double Strawberry Banana, Chocolate co-branding partner to create a and the response has been great Fudge Brownie and Pralines N’ Cherry, Blue Raspberry, etc... brand new line," said Gary Giller, according to Giller who added Cream "We experiment daily with the president of Stroh’s Ice Cream “This is probably the most unique The Stroh's Homemade flavors. The possibilities arc Company. “Teaming up with product we've ever developed." flavors will also include endless, the flavors are Sanders, another popular Detroit The Stroh's Homemade Ice Philadelphia Vanilla, Cherry marvelous,” says Bob Jasgur, Company, made a lot of sense.” Cream flavors include: Sanders Cordial, Moose Tracks and Detroit Popcorn. For more Stroh's is currently sampling Milk Chocolate "Hot Fudge Raspberry Chocolate Torte. all information, call Detroit Popcorn three of the new co-branded Sundae” (made with real Sanders favorites from the 1919 Brand. at (313) 835-3600.

Rocky Peanut Company introduces new Express packaging

Under the CityFarm™ label. Rocky Peanut Company of Detroit has introduced a new collection of roasted nuts, snack mixes, dried fruit and candy, ideally priced and sized for impulse buying. Packaged in a laminated, clear stand-up bag, the products are packed by volume, not by weight, so all bags are the same size and look great on the shelf or counter. Since they stand up by themselves, they are great for space-conscious retailers. In addition to the new Express line, Rocky also carries their traditional products in two lines: Essentials, packaged in stackable, hinged lids and Basics, packed in four sizes of polypropylene bags. For more information, call Rocky Hamilton Quality Convenience Foods Peanut Company at (313) 871 -5100. 29411 B everly • R o m u lu s, M I 48174 (313) 728-1900 • Fax (313) 728-1909 More new snacks, pages 14 and 16

6.....FOOD & BEVERAGE REPORT. JUNE 1997 News Notes McMahon & McDonald joins

McMahon & McDonald, a PMI-Eisenhart leading Michigan food broker with in Indianapolis to provide merger with owners of Sandbo and expansion, PMI-Eisenhart made a offices in Detroit, Grand Rapids complete coverage in the McMahon & McDonald becoming major investment in leading-edge and Toledo and The Sandbo Michigan, Ohio, Kentucky and stockholders in the total PMI- technology to add maximum value Company, with offices in Indiana region. The company’s Eisenhart company. to their customers and principals. Columbus, Cincinnati, Dayton, coverage now stretches as far west The merger makes PMI- Serving retail food stores Fort Wayne and Louisville, will as Kansas, Oklahoma and Utah Eisenhart the largest food broker throughout the Midwest. PMI- join PMI-Eisenhart. In addition, and includes Wisconsin as well. serving the Midwest exclusively. Eisenhart has 21 offices and 1400 PMI-Eisenhart will open an office This activity represents a true In anticipation of this employees.

The Most FMI hosts Sippable Tequila. electric

restructuring There is a new breed of ultra-pre conference in new breed of tequila drinker. It is be sipped, savored and enjoyed Chicago fine spirit. In this exclusive world sets the standard; redefines the The Food Marketing Institute experience with its smooth, exceptional (FMI) is hosting a conference at flavor. Handcrafted from 100% blue agave the Hyatt Regency O'Hare in carefully cultivated in the highlands of Chicago, June 26-27, on the subject of electricity restructuring Jalisco, Patron contains no added in the Middle and Midwestern sugar, coloring or anything else United States. that would compromise its The issues surrounding utility superior quality and flavor. deregulation in the Middle and Midwestern United States are Patron Silver numerous and diverse. Some states see tremendous potential savings Patron Silver is the finest of and are quickly moving to a the “young” tequilas. Crystal competitive electric market; clear in appearance, Patron others are taking a more cautious Silver has a floral aroma and fruitier flavor than aged approach and still others are interested in preventing tequilas, with an elegant smoothness that is perfect for competition in electricity because sipping or in mixed drinks. they tear that electric rates may go up. TEQUILA— BOARD LISTED Retailers and other members of ON PREMISE OFF PREMISE SHELF the commercial class have much to CODE BRAND PRF SIZE PRICE PRICE PRICE gain from a competitive electric 8815-6 Patron Silver (3 PK) 80.0 0.750 31.43 32.04 37.67 market. In addition to providing educational material, the conference will provide an exciting opportunity to learn more about competition and to unite the members of the commercial class. For more information, call AFD at (248) 557-9600. We will 27260 Haggerty Road, Suite A-14 • Farmington Hills, Ml 48331 provide you with a brochure and Phone (810) 553-9933 registration material.

FOOD & BEVERAGE REPORT, JUNE 1997.....7 Retail Profile Livonia store markets for the future Anthony's Old World Market provides freshly prepared meals to busy customers by Ginny Bennett Between the Merry Bowl and to fast foods. The customer can Merriman Road on Five Mile order from our menu of gourmet Road in Livonia, Anthony’s Old pizzas, fresh soups and a full menu World Market opened in March. with daily specials for carry out.” Shoppers will be merry indeed The market will also stock when they try this store for the international wines, breads, first time. Upon entering one can pastries, the freshest USDA meats, tell that the shopper is about to offering special cuts, as well as discover a pleasant new way to fish and seafood brought in daily. perform a necessary task. At the Also on the shelves, shoppers can entrance,self-serve complementary buy hard-to-find cheeses, fresh salads prepared daily and over 30 coffee is offered. Then the different gourmet coffees. customer is steered past the fresh Anthony’s Old World Market flowers right smack dab in front of celebrated their grand opening the beautiful array of prepared with a ribbon cutting ceremony foods. be close to the front door or the maintain contact with my and a four-week-long grand This long, shiny counter with its check-out counter. Although other customers and learn what I can opening celebration. Featured display of chef-prepared ready-to- stores have offered gourmet dishes provide for them." Wroblewski is throughout the month were special serve meals may be the way and prepared foods, perhaps none even willing to prepare meals with discount promotions, food grocers begin to do business in the have committed the space and special dietary requirements. sampling, entertainment and future. In order to compete against location that Anthony’s does. Armed with over six years of special mascot appearances by restaurant, take-out meals and fast The new look begins at the front experience, Wroblewski took this suppliers and drawings for prizes door. The entire mall has position at Anthony’s because it which included a big screen undergone a major renovation and gives him an opportunity to be in television, mountain bike and five on the wave of the future. He the new facade is bright and gift certificates to the store. There welcoming. Fresh flowering agrees that the shopper of the was also a 5 percent discount future will want a ready-made plants are set out on the sidewalk offered to city employees. home-cooked meal and will want in front of Anthony’s. Anthony’s Old World Market to buy it in an environment which Once inside, past the philosophy is to provide quality, provides superior service and the aforementioned counter, is the service and convenience to freshest products in delightful vegetable and fruit tables. With shoppers. The management has surroundings. the shopper’s comfort in mind, the made the commitment to provide a “Two working parents in a entire area is carpeted. The beautiful store and shoppers in household have very little time to shopper has probably worked all Livonia can be assured that the provide their families with a day and now he or she can buy shopping experience will be quality home cooked meal,” said something that needs no pleasurable at Anthony s Old Wroblewski. “We, at Anthony’s preparation and do it in a well lit, World Market. comfortable surrounding. want to provide a healthier option Livonia resident Steve Caramagno along with Ron Kohler and Raleigh Wilburn are co- food for the dinner-time dollar, owners of the store. Kohler and store owners are looking for non- Wilburn also own Oakridge traditional ways to provide that Markets in Detroit’s eastern meal. The owners of Anthony’s suburbs. The store has over 100 Old World Market are in the full and part-time employees forefront of a new trend of including Chef Richard providing home-meal replacement. Wroblewski. The product is fresh, appealing, Chef Wroblewski, also a chef-made and it is the first thing Livonia resident, says, “We are a the shopper sees and smells when little different than other gourmet the door opens. If shoppers at markets. My goal is to be viewed Anthony’s want cereal or canned similar to the chef in your favorite soup they can find it but it won’t restaurant. I plan to continually

8.....FOOD & BEVERAGE REPORT, JUNE 1997 It’s a party and your taste buds are invited.

©1996 ANHEUSER-BUSCH, INC., BREWERS OF BUDWEISER® BEER, ST. LOUIS, MO

FOOD & BEVERAGE REPORT, JUNE 1997.....9 Distributor Profile Earl Ishbia wins national award

by Danielle MacDonald loading Over the last attributed to many things includ­ The National Poultry and Food trucks and 10 years, ing Ishbia’s business philosophy. Distributors Association (NPFDA) keeping the Sherwood “Integrity is the most important honored Earl Ishbia, Partner of books. The Foods has thing in business. I treat people Sherwood Food Distributors, as six expanded fairly and I expect to be treated the 1996 Member of the Year for employees dramatically, fairly.’ Treating customers fairly his dedicated service to the that helped opening according to Ishbia involves being industry. "I am very proud of this launch Regal warehouses in available. “I pride myself on trying award.” said Ishbia who has been Packing Michigan, to return all calls the day they are in the meat industry for over 25 Company in Ohio and received. On occasion it might years. 1969, still Indiana. Today lake till 9:00 p.m., I feel if it's Ishbia's first job out of high work with Sherwood important enough to call me, it is school was with a meat packing Ishbia today distributes important to return the call" company. Today he is one of the at Sherwood over 12 million When you are at the top of your most respected people in the Foods which pounds of meat field, anything is possible for the industry. “No one has ever is a tribute to every week, future. Ishbia and Tushman do not challenged the integrity of his character. utilizing a have any current plans for Sherwood Foods,” explained In 1987, network of expansion but they are always Ishbia. "Our word is a bond we Orleans over 100 looking for opportunities. have never broken so our International, owned by Larry trucks and 500 employees. The “Although I am not ready yet, my customers are very loyal.” Tushman, merged with Regal Detroit office alone distributes 1 personal plan for the future is to In 1969, Ishbia with Partner Packing to form Sherwood Foods million pounds of meat every day. work less and rely on the younger Alex Karp formed Regal Packing Distributors. “We realized that in “We offer our customers one- generation to carry on the tradition Company which specialized in order to survive in this industry, stop shopping, providing fresh and of providing quality products and distributing pork and eventually we needed to become a larger frozen meats along with processed services to our customers.” said branched out to poultry, beef and entity with more buying clout, and and deli meats,” explained Ishbia. Ishbia. He may not be ready, but processed meat. Starting with a lower operating costs,” explained “We also have a 98 percent fill Ishbia and Tushman are well small van and six employees, they Ishbia. With Tushman handling rate which means if a customer positioned to hand over the reins went on to form one of the largest the administrative side of the wants a product, it will be to the younger generation. Ishbia meat distribution companies in business and Ishbia in charge of available.” Sherwood Foods has five sons of which three work Michigan. Ishbia wore many sales and marketing, Sherwood distributes pork, beef, poultry, deli in management positions at different hats during the early Foods holds reign as the largest and processed meats, seafood and Sherwood. Tushman and Karp years in business, including independent meat distributor in the frozen foods. also both have sons in upper purchasing and selling product. country today. Sherwoods’ success can be management at Sherwood. Both Ishbia and Tushman will remain at

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FOOD & BEVERAGE REPORT. JUNE 1997.....II Turning unsaleables into positive opportunity

Unsaleable products have grown recognized in the industry as a kind of apostle of good reclamation negotiation between buyer and into a $2.6 billion industry practices. seller. The issue will get more and problem because both "We brought the first can crushing machine to the U.S.,” Esther says. more attention.” manufacturers and distributors The Kan Kruncher. manufactured by Enviro Care Kruncher Corp. of Two manufacturers we talked have been willing to accept it as a with agree: “An unsaleables cost of doing business, according industry has been created because to A d H o c interviews with experts manufacturers turned their hack on on both the buyer's and seller's the problem. Most of us now side of the desk and third parties. realize it’s not going to go away. "The problem is that no one Costs continue to increase. The takes ownership of the problem. It only way to lower these costs is to should be used as an opportunity accept responsibility for digging for doing positive kinds of things.’ into the issue, gather information a third party operator of about reclamation, and analyze reclamation centers told us. where the problems lie,” says One distributor who is turning Randy DeKeuster, reverse the unsaleables problem into a logisitics manager for SC Johnson positive opportunity is Spartan Wax, Racine, Wisconsin. Stores. Inc. Spartan operates its Randy believes manufacturers own 30,000 square foot can take many actions on their reclamation center in Charlotte, own to reduce exposure to Michigan. Esther Trondle, unsaleables risks, even before manager of the center and its 35 Waterloo, Ontario, Canada, takes dented cans that used to go into a full-time employees, is proud of landfill, crushes out their contents, and compresses the remaining metal what's being accomplished. She into six-inch cubes. The Kruncher pumps the contents of these cans into Factors travels widely and has become 55-gallon drums, which Esther sells as livestock feed. The steel bricks contributing to are recycled by a local scrap processor. rise in unsaleable "A couple of million pounds of costs food are donated out of our center annually-to Second Harvest and • Introduction of other food banks,” Esther adds, reclamation centers "and every time there's a disaster improves tracking. somewhere, we send a truckload.” A company wide review of best • Number of discontinued ways to reduce unsaleables is SKUs grows as retailers under way at SUPERVALU, Inc., embrace category Eden Prairie, MN, led by Bruce management. Trippet Operations Manager. “Everybody wants unsaleables to • Package changes that go down. Each of our over 35 improve efficiency distribution centers takes a sometimes increase different approach. We recognize vulnerability to damage. the need to do a better job, and we

are looking at how to change the • Cross-docking cuts way we’re doing business,” Bruce storage costs but may raise told us. risk of handling damage. Many manufacturers, according to a third-party reclamation center • Overselling leads to rise operator who asked not to be in out-of-date inventory. identified by name, "look back to the 1970s when they had field working out cooperative solutions people handling unsaleables in with trading partners. “For store backrooms and comers of example, flavor of the month warehouses. They don’t realize marketing lends itself to high that they are much better off today. damage and reclamation issues,” They are getting a better return on he says. Sometimes changes in the the dollar for unsaleable products. manufacturing process and It’s a much better system. What’s package changes solve problems going to happen is that unsaleables that lead to damages. will be squarely on the table for See Unsaleables Page 28

12.....FOOD & BEVERAGE REPORT. JUNE 1997 FOOD & BEVERAGE REPORT, JUNE 1997.....13 Snack Foods

Country Preacher adds new line of prepared meat

Country Preacher Foods. Inc. program that helps students stay in Knockwurst. has added prepared meats to its college after they’ve been The three Country Preacher product line. The not-for-profit accepted, and his annual drive to cookie varieties (Peanut Butter. company started out selling get new shoes for welfare children. Oatmeal Raisin and Chocolate cookies and potato chips three The new meat line includes: Chip), are baked and packaged at years ago. It was founded by Classic Trimmed Hams, Spiral Baker's Choice in Southfield and Reverend Jim Holley, pastor of Sliced Glazed Ham, Spiral Sliced Awrey Bakeries in Livonia. The The Historic Little Rock Baptist Mesquite Turkey, Smoked Breast potato chips are produced at Better Church in Detroit who saw it as an of Turkey, Jumbo Beef Franks, Made Potato Chip company and opportunity to raise money for his Jumbo Red Hots, All Beef come in three varieties of Old Ripple Style. For more various charities including Chips, Bologna, All Beef Salami, Fashioned Potato Chips; Original information call Country Preacher (Children in Progress), which is a Smoked Sausage and All Beef Country Style, BBQ flavored and in Detroit at (313) 963-2200.

Greenfield Healthy Foods introduces new reduced-fat snacks Greenfield Healthy Foods, the Connecticut company that introduced the first nationally distributed fat-free brownie, is out in front again with three new reduced-fat products: Fudge Dipped Raspberry, Brownie, Fudge Dipped Devil’s Food Brownie and Country preacher Foods, Inc. is dedicated to providing impoverished Fudge Nut Cookie. The suggested children of urban America with the leadership and financial retail price for each product is resources to get the education they will need to rise above their $2.69 per box. “There has been a great deal of current economic status, becoming a successful and contributing change in the better-for-you snack member to society. category-our distributors and 100% of all profits generated by Country Preacher Foods, Inc., retailers look to Greenfield for goes to support the children of the CHIP Foundation, high-demand products. These new “ Children In Progress.” products bring innovation the reduced-fat category,” said Greenfield’s Executive Vice President Eric Klar. “Our two new fudge dipped brownies taste as if you bought them in a fine gourmet bakery. The Reduced Fat Fudge Nut Cookie is also one-of-a-kind- and will help bring new users to the category ." Greenfield’s snack line includes seven fat-free products and the three new reduced-fat products. The fat-free products include: Chocolate Brownies, Apple Spice Blondies, Chocolate Chip Blondies, Iced Oatmeal Raisin Cookies, Dutch Apple Cookies, Double Chocolate Lace Cookies and Caramel Popcorn. The company’s products are available nationally at more than 65,000 locations. Greenfield was acquired by Campbell Soup COUNTRY PREACHER FOODS, INC. Company in November 1994. For 645 GRISWOLD STREET, SUITE 1917 • DETROIT, M ICHIGAN 48226 more information, contact Tel. 313-963-2200 • FAX 313-963-2203 Greenfield at 1-800-544-2670.

14.....FOOD & BEVERAGE REPORT, JUNE 1997 CALLING ALL GOLFERS: Tee Up....Tee Off with AFD at the 1997 Scholarship Golf Outing! Thursday, July 24, 1997 at Wolverine Golf Course Get on the Right Course with an Eagle, Birdie or Par Sponsorship Package! Last year, your sponsorship dollars provided 26 scholarships for students from the food & beverage industry. With your help, we can again provide this assistance for the future leaders of our industry. Sponsorships and Foursomes now forming. Call Tom Amyot at (810) 557-9600 for details.

Become a "Driving'' Force Toward Education. Reserve Your Sponsorship Today! * Snack Foods Lays WOW Chips fry without fat

Frito-Lay, Inc. is test marketing Gamble, starting with natural Olean is not absorbed, chips in Indiana that are made with ingredients, It looks like fat, WOW! chips are fat-free Olean®, the brand name for cooks like fat and gives foods (except for the small olestra, the new fat-free, calorie- great taste and texture like fat-but amount of fat found free fat replacer. But don't hold adds no fat or calories. naturally in the com of your breath, it will be at least a So how does Olean work? tortilla chips). year before the chips become When foods that contain ordinary According to Frito- available in Michigan. fat are eaten, the fat is broken Lay, Olean is one of the Frito-Lay is test marketing down by the digestive system and most thoroughly tested Lay’s®, Ruffles®, and Doritos® absorbed into the body. Olean is food ingredients ever containing Olean under the made in such a way that it is not approved by the U.S. WOW!™ brand name. absorbed into the body (similar to Food and Drug Olean is made by Proctor & fiber, for example). Because Administration (FDA).

Leading organizations such as the American Medical Association, the American Heart Association and the American Academy of Pediatrics support the FDA's approval process on Olean. More than nine years of research, including 150 studies involving 8,000 men, women and children, supports Olean’s safety. The FDA’s conclusion: Olean is safe for everyone to eat regardless of age or physical condition. We offer our friends and When foods made with Olean are eaten around the same time as member retailers of the foods that contain vitamins A. D. E and K, the Olean alone could Associated Food Dealers decrease the absorption of these vitamins. To offset this effect, these vitamins have been added to of Michigan all WOW! snacks. Most people will enjoy WOW! QUALITY, VARIETY snacks without any problem. However, a few people may experience temporary, common and SERVICE digestive changes (about 2 percent of the population as reported in a that is ... recent study). These changes are similar to those that many people MADE IN MICHIGAN! experience from eating raw vegetables, milk, or high-fiber foods such as bran or beans. The Olean trademark will be on the front of the packages containing it. For more information, call Frito-Lay at 1-800-24FRITO.

16.....FOOD & BEVERAGE REPORT, JUNE 1997 FOOD & BEVERAGE REPORT. JUNE 1997 ... .17 Eenee, Meene e , Minee, Mo...

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18.....FOOD & BEVERAGE REPORT, JUNE 1997 Place a contour barrel in your store and you will help raise monies for the AFD Scholarship Fund as well as for the Alternating Hemiplegia Association. See your local Coca-Cola Account Manager for details.

FOOD & BEVERAGE REPORT. JUNE 1997 19 Michigan Lottery News

Regional offices now cash winning tickets up to $50,000

into effect. Daily Games have enjoyed a month with winners on both sides The same prize redemption steady climb in total sales, with of the ticket counter, June also requirements must be met at the 1997 weekly sales averaging marks the start of three new instant Lottery regional offices. Winners nearly a 10 percent increase over games with lots of great prizes. must produce picture identification 1996 sales. Beginning June 9 your instant and proof of their Social Security The “Fat Pockets” second- game players can really get more number. (If a lottery club is chance sweepstakes is sure to bang for their buck with the new claiming a prize, the club must attract interest in the Daily Games, $1 “Big Bang Bucks.” The new provide proof of its Federal as $160,000 in cash prizes will be game offers a top prize of $6,000 by Commissioner Bill Martin Employer Identification Number.) awarded during the four-week and will be available at Michigan Great news for your Lottery Only players who win more than promotion (May 24-June 21). Lottery retailers June 9. customers! Now it’s faster and $50,000 need to call the Lottery Daily 3 and Daily 4 midday and “Card Shark,” a new $1 instant easier to claim Michigan Lottery Public Relations office in Lansing evening tickets for drawings game, has three chances to win the prizes up to and including to arrange to claim their prize. between May 24 and June 21 are top prize of $3,000. “Card Shark" $50,000. Effective May 1, players Lottery retailers will continue to eligible for the "Fat Pockets” can be spotted at ticket counters can redeem winning tickets-online cash winning tickets up to and promotion. June 16. or instant-worth $50,000 or less at including $600. Your customers aren’t the only Rounding out the month, the any Lottery regional office. So give your customers the good ones who can win with “Fat Lottery introduces a new $3 Previously, prizes of $10,000 or news. Claiming prizes is easier Pockets.” Retailers who sell the instant game, “Cash For Life.' more had to be claimed at than ever! tickets in a winning “Fat Pockets” Certain to stir up excitement, Lottery’s Lansing offices. In an Some of the prizes your entry will receive the following “Cash For Life” boasts a top prize effort to make the claim procedure customers are claiming could very bonuses: $ 100 for a winning of $1,000 a week for life, and easier and more efficient for our well be from the Daily 3 and 4 $15,000 or $5,000 entry; $50 for a other cash prizes ranging from $3 players, the regional office games. Since the launch of winning $1,000 entry. to $1,000, instantly! “Cash For redemption procedures were put “double draws” last December the As “Fat Pockets” wraps up this Life” is available starting June 30.

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20.....FOOD & BEVERAGE REPORT, JUNE 1997 Money in your Pockets The Smart Lighting Choice: Quantity versus Quality Practical energy advice from Detroit Edison To create and maintain Illuminating Engineering Society Proper lighting can be to avoid interfering with the well-lighted surroundings, (IES) of North America accomplished by lighting an object guard's security duties, but at an businesses need to achieve a recommends minimum light levels or area directly or aesthetically, angle that will not disturb drivers of one-foot-candle for self-park creating silhouette lighting. approaching the check point. balance o f quantity and and perimeter areas. The IES also Lighting fixtures should be placed Effective lighting also should quality exterior lighting. recommends lighting parking lot so as not to create glare, which can have good color-rendering entrances with at least five-foot- make it difficult for pedestrians properties, enabling people to Q u antity candles-brighter than ambient or and motorists to distinguish identify faces, differentiate There needs to be enough light background lighting-to welcome approaching people. Such glare between clothing colors and avoid to see parking lot entrances and incoming traffic to the facility. can temporarily inhibit drivers’ a potentially threatening person. exits, cars in the parking lot, the vision, create driving hazards, and Also, lighting should be uniform front door of the building and Q u a lity prevent people walking to and to eliminate dark spots and approaching people who may or Simply maintaining the proper from the building from avoiding adjustment periods when moving may not pose a threat to personal light levels for your business’ possibly dangerous strangers. between overly bright and poorly safety-while welcoming incoming surroundings isn’t always enough. To avoid glare, choose fixtures lighted areas. Light both vertical customers. If the wrong types of lighting are that cut the angle of light (building facades and landscaping) Exterior lighting should be used, or the correct kinds are used distribution from the field of and horizontal (roadways and uniform, creating a consistently improperly, the lights actually can vision. For guard shacks, lighting walkways) surfaces, creating bright illumination level around increase security and safety should be placed behind the guard distinguishing contrasts between the property's perimeter. The hazards. and directed toward incoming cars people and backgrounds.

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FOOD & BEVERAGE REPORT. JUNE 1997..... 21 Legislator Profile Meet Pan Godchaux a Freshman legislator with fresh ideas

by Michele MacWilliams where Pan took a job as an aid on Patricia (Pan) Godchaux is a the Metro Desk at the Washington firm believer that less is best. A Post. “This was during the freshman legislator from the 40th Watergate investigation, a very district, (which includes exciting time to be in journalism." Bloomfield Hills. Bloomfield Pan managed the coverage of Township, Birmingham, Franklin, local, DC elections. Bingham Farms, Beverly Hills Next, the pair moved to and Sylvan Lake) Representative Savannah, Georgia, where two of Godchaux would like to see less their three children were born. government interference so free Also during this time Pan began a enterprise is allowed to flourish. new career as a broadcast “It is frightful to me to see the journalist. A local AM station number of laws introduced each hired her as their “news year,” says Godchaux. “It is mind department.” There is a laugh in boggling for businesses just to Representative Godchaux's voice keep track of all the legislation." as she recalls those days on the She adds that the legislature radio; a job she enjoyed. passes approximately 300 new A career opportunity for Justin laws annually and jokingly says and will make them better in the comes from an abbreviation of brought the Godchaux family to that legislators should have to get long run. Patricia Ann) is not a Michigan Michigan. They settled in rid of five old laws in order to Her views on education come native. She spent her childhood Birmingham mainly because of introduce a new one, or better yet, from years of experience. She years with her parents and four the good reputation of the schools. pay a fee of $ 1,000 for each new served on the Birmingham Board brothers and sisters mainly in From the beginning, Pan bill. of Education for 10 years; as their New Jersey and then high school Godchaux was involved with their She believes her less-is-more president, vice president, secretary in El Paso, Texas. Politics was children’s education and the philosophy can also be applied to and treasurer. She also has three always a keen interest of hers so school system in Birmingham. our educational system, where children who have attended or are for college it was off to the Throughout the 10 years on the individual school boards should attending Michigan’s public American University in Birmingham school board she have more control and schools. She is a teacher herself Washington, DC. where she directed the search for a government less. and taught third grade in the received her bachelors degree in superintendent, was a member of “We must find ways to Detroit public school system in American government and met the Central Committee for the deregulate. To me, government’s 1995 and 1996. Her experiences, her husband, Justin. school's strategic plan, was on the role is to set standards and then both in Birmingham and in After their wedding, the two board of three different school leave it up to the individual school Detroit, have given her a clear newlyweds were off to Bolivia as PTAs and was recognized by the systems to meet those standards in picture of the full spectrum of our Peace Corps volunteers. She Michigan Association of School the way that is best suited for their public school system. She has wanted to join the Peace Corps Boards for outstanding service. students,” says Godchaux, who is learned what works and what ever since President Kennedy Education is obviously on the House Appropriations doesn’t. announced its formation on the something that she promotes Committee for K-12 Department Providing opportunities for steps of the University of strongly, in fact, Representative of Education. parents to become involved with Michigan. Godchaux is once again going to She says that currently our their child’s education - and not Representative Godchaux feels school herself. As she puts it she government regulates the number feeling uneasy or intimidated by the years spent in South America is “stuck on the third chapter" of of hours each student goes to the schools - is an important step. were a wonderful learning her master’s thesis at Wayne State school. “Instead of regulating She acknowledges that this is a experience, and something that University. She will graduate time in class, we should pay difficult job, particularly in benefited the volunteers as much with a Masters of Arts in schools by their success - like pay communities that have a high as the people they came to help. Teaching - someday. for diplomas. Of course we must incidence of single-parent “Taking young, energetic people For now, her primary goal is to define what must be accomplished households, or where the parents who haven't lost their idealism represent her district in Lansing for a diploma, but then leave it up cannot afford to take time off and putting them in a foreign and do her part to reduce to the schools. Our goal is to from work to attend school culture is a great way to transfer government bureaucracy, graduate students.” functions. However, teaching our technology to aid other allowing free enterprise and Representative Godchaux parents that they are partners in societies in a non-threatening competition to continue to keep believes charter schools are a step their child’s education improves manner,’ she adds. our state’s economy strong and in the right direction because they the chances for success. After the Peace Corps the healthy. compete with our public schools Pan Godchaux (her nickname couple returned to Washington

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KX)I) BEVERAGE REPORT. JUNE 1997 . 23 AFD on the Scene Roamin’ around the 1997 AFD Buying Trade Show The deals were hot on April 28 and 29 at Burton Manor!

24.....FOOD & BEVERAGE REPORT, JUNE 1997 AFD on the Scene Trade Show *97

FOOD & BEVERAGE REPORT. JUNE 1997 ....25 AFD on the Scene

Faygo Beverages holds a press luncheon as part of 90th Anniversary Celebration by Ginny Bennett The press was recently invited to a luncheon at the Five Lakes Grill in Milford as part of the Faygo Beverage 90th Anniversary Celebration. The luncheon theme was nostalgia for the popular flavors and promotions from the past but the menu and the presentation were looking toward a bright future for the Faygo Company. Lunch was served after a brief announcement from Matthew Rosenthal, Faygo Beverage marketing director and a grandson of the founding family. Rosenthal presented a sneak preview of a not-yet-released anniversary television commercial that incorporated award winning spots such as The Faygo Kid and the Faygo Boat Song. The menu was created by renowned local chef Brian Polcyn, owner of Five Lakes Grill, and featured the fruity, fizzy George Kattula of Fox Hills Party flavors of Faygo paired with food to create unique and delicious taste sensations. The first course was Gingered Gulf Store in Plymouth receives a check for $2,000 from AFD as a reward Shrimp with Faygo Ginger Ale, Faygo Root Beer Glazed Smoked Loin of Pork with Michigan apples, cherries and a for helping in the arrest and Faygo Redpop compote, and a dessert made from Faygo Creme Soda and Praline Bavarian with Faygo Orange and conviction of an armed robber at his vanilla sauces. The specially made feast tantalized taste buds while not over powering the flavors of the food. According store. to Chef Polcyn the two-liter bottle of soda was reduced to one half cup and used judiciously to flavor the sauces.

Great chefs prepared Great Lakes dishes for the 2nd Annual Great Lakes-Great Wine Walk Around Tasting at Oakland Community College, Orchard Ridge Campus.

Guests sipped, swirled and savored gold, silver and bronze medal-winning wines. Proceeds benefitted scholarships for culinary arts and management Gingered Gulf Shrimp with Brian Polcyn of Five Lakes Grill in Milford students. Faygo Ginger Ale prepared a Faygo-flavored gourmet feast to (l to r) OCC Chef Instructor, Kevin celebrate Faygo's 90th anniversary. Enright, Executive Chef Randy Emert Golden Mushroom Executive Matt Rosenthal, marketing director of Faygo, and Diondra Williams of Pike Street Chef Steven Allen hosted the affair. 1 3 0 ^ 3 3 /i\inv7Coi i

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26.....FOOD & BEVERAGE REPORT. JUNE 1997 Thanks for making our 1997 “World of Savings” Trade Show a success!

The Associated Food Dealers would like to Thank you to the breakfast seminar Thank you to the experts who hosted free thank the 1997 Trade panelist speakers: seminars during the Trade Show: Show Committee for Alaa Naimi from Thrifty Scot Supermarket Shirley Myles from USDA their hard work and Ed Jonna from the Merchant of Vino Marketplace Charlene G ardner from Transactive Thom Welch from Hollywood Super Markets Lottery Commissioner Bill M artin dedication over the last Tom Violante from Holiday Food Center Karen Butler from Michigan Department of year: Jeff Rumachik from the Food Marketing Institute Agriculture (moderator) James Connelly from Detroit Edison Co-Chairman 1997 Thom Welch Hollywood Supermarkets

Co-Chairman 1997 Charlie Parrish Awrey Bakeries, Inc.

Alaa Naimi Thrifty Scot Supermarket

Gary Davis Tom Davis & Sons Dairy

Ronnie Jamil Mug & Jug Liquor Who is Michigan's Best Bagger? Joe O'Bryan There's only one way to find out—enter the A 7-UP of Detroit 1997 Michigan Best Bagger Contest. Brian Yaldoo You’ll make your store (and your mother) proud! Woodward Long Lake Shell Monday, June 3 0 , 1997

Keith Hakim Tel/Twelve Mall • Southfield Central Alarm Who Can Enter? How Are Contestants The competition is limited to the first Mark Sarafa 36 entries received; only one contestant Judged? Frito-Lay per company. Your company must be a O n the follow ing criteria: speed, proper “ bag member of the Associated Food Dealers building" technique, number o f bags used, o f Michigan o r the Michigan Grocers distribution of weight between bags and style, Vickie Carter Association to be eligible. attitude and appearance. Melody Farms You can enter if you are a regular full or part-time employee whose normal How Do I Enter? Mike LaFollette job duties include bagging (i.e. cashier See your store manager for details. Additional or service clerk). inform ation can be obtained by calling M G A at Sales Mark 1-800-947-6237 or AFD at 1-800-666-6233.

Faiez Asmary Sponsored by: General Wine & Liquor Win A Trip to Blue Cross Blue Shield of Michigan BUNZL-Detroit Las Vegas, Nevada AirTouch Cellular Spartan Stores, Inc. Special Thank You to: to compete in The National Best Bagger Contest next February H osted by: Union Ice for donating the Michigan Grocers Association ice during the trade show. and $800 Associated Food Dealers of Michigan Thank you also for walking ($500 Scholarship + a $300 shopping the show floor to personally spree at the deliver ice: we really Tel/Twelve Mall) appreciate your professionalism! Kraft Foods for supplying Maxwell House coffee during the trade show

FOOD & BEVERAGE REPORT. JUNE 1997.. . .27 Reasons for increased costs Unsaleables A number of industry 180 reclamation centers were continued from page 12 of full corrugated containers or developments have contributed to operating. In 1996, we counted corrugated containers or shrink "Seventy percent of product increases in unsaleables costs, 450 locations in operation,” Gene wrap tray packs, for example- coming through the reclamation according to Gene Bodenheimer, reports. have sometimes led to increased channel has value. We have an vice president and general Other signifcant developments damage. opportunity to recover costs by manager of Damage Track®, include: • Increased use of cross- selling it in the secondary market Winston-Salem, North Carolina, a • The push to rationalize store docking, another ECR intiative, or donating it," he adds. leading third party consultant. The assortments that is part of the reduces costs by eliminating the Cases that overhang or first distributor reclamation centers category management intitiative warehouse putaway and storage underhang the pallet increase risk opened in the early 1980s. under ECR (Efficient Consumer function but may add to risks of of damage, according to another "Seemingly overnight, costs of Response) has increased the handling damage. Damage Track major product manufacturer. unsaleables nearly doubled as number of discontinued items that is currently conducting a study of "Now we try to start with the distributors began to seek have to be removed from the cross-docking and unsaleables. pallet size and work backwards in reimbursement for unsaleable distribution channel. • Competitive pressures, developing packaging for a goods that had once been tossed • Efforts to reduce packaging especially at year-end, may lead product,” he told us. out. By 1991-92, about 175 to for efficiency-using sleeves istead to “overselling” or “overstocking,” forcing too much product into the pipeline at one time. Out-of-date product accounts for a large share of unsaleables. What are some of the best practices that distributors and manufacturers follow to control unsaleables? “The key to rate reduction is to control the cost instead of budgeting it,” says Daniel J. Raftery, president of Prime Consulting, Inc., Bannockburn, Illinois, and author of a major industry report on unsaleables. He suggest that retailers take the industry’s average unsaleables rate, .89 percent of sales, and measure store performance against it. Best Practice: measure store performance level “Some retailers use a sliding scale. Stores below the average receive a credit. Those above the average carry additional charges. It is critical that retailers do store- specific monitoring. The reclamation center should identify the sending location as they Blue Cross/ Blue • Full Time Lobbyist •Audio Visual Loan • Annual Trade Show process the products," Raftery Shield Health Care Library says. •AFD PAC Committee •Annual Trade Dinner • Western Union •T.I.P.S. Seminars “Manufacturers who don't have • Legislative Updates •Annual Golf Outing their own data can use the study Money Orders • Legal Consultation • Liaison with Govern­ •Annual Seniors Picnic •Ameritech Payphone data-multiply annual dollars mental Agencies •Accounting Advice Program • Annual Turkey Drive shipped to each customer by .89 • Monthly F o o d & • AirTouch Cellular • Reward Fund percent. The result is the Beverage Report ‘dynamic average’ that can be • MoneyGram • Scholarship Awards expected for a customer at that • AMNEX Long Distance sales level. If a company Payphone Program experiences an annual cost higher • Coupon Redemption For more information on any of these than this dynamic average, further Program excellent programs, call: investigation can determine the MasterCard/Visa ASSOCIATED FOOD DEALERS OF MICHIGAN cause of the situation and what Acceptance can be done to improve it," says 18470 West Ten Mile Road • Southfield, Michigan 48075 Self Insured Workers Raftery. Comp Fund “One retailer has a neat approach for products that shouldn’t have been sent back to the reclamation center (DSD See Unsaleables, page 31

28.....FOOD & BEVERAGE REPORT, JUNE 1997 Legislative Updates

Liquor Control Commission July 1 deadline for alcohol Special Occupational Taxes changes emergency order fees All retailers and wholesalers of alcohol beverages must make their annual Special Occupational Tax (SOT) payments by July 1. Every year, retailers must pay $250 and wholesalers must pay At its April 30 meeting, the Michigan Liquor Control Commission $500 for each place of business (e.g., a 12-store chain selling adopted a new rule regarding emergency liquor orders. Now the beer must pay $2,500). The tax applies to all types of sales, such distributor agents will no longer charge retailers a fee for special as: retail; wholesale; package sales; by-the-drink sales; and emergency orders when the order is picked up by the retailer at the both on-site, and off-site consumption sales. Taxes are paid to warehouse. the Bureau of Alcohol, Tobacco and Firearms (ATF). ATF The maximum $20.00 fee which may be charged by an authorized began sending the tax forms in May. If you do not receive your distribution agent to a retail licensee for a special emergency order of SOT tax form by mid-June, you should call the nearest ATF spirits authorized by the provisions of Public Act 440 of 1996 shall not office. ATF does assess interest and penalties to late payments. be charged in those instances where the special emergency order is The tax form and additional information on the SOT are also picked up by the licensee or on behalf of the licensee at the warehouse available on NACSFax by dialing 1-800-555-4633 and facility of the authorized distribution agent. requesting document #143. Failure to comply with the above directive will be considered a violation of Section 436.3a (4) of the Michigan Liquor Control Act and will be subject to the penalty provisions of the Act. If you have questions, please call the Liquor Control Commission at The fight against SOT continues (517) 322-1345. Specify that you are calling regarding Bulletin number 2899-17. The alcohol retailing and wholesaling and manufacturing industries are supporting legislation introduced by Rep. George Radanovich (R-CA) to eliminate the SOT (Special Occupational Tax). In a letter to Congress seeking co-sponsors for Mr. Welfare cases drop to 25-year low Radanovich’s legislation, the anti-SOT coalition wrote, “We believe the tax is without purpose; is not uniformly enforced and The number of welfare cases-and the number of people on merely flows into the Federal General Fund without any returned welfare-declined to the lowest it has been in 25 years. Governor service to the alcohol beverage industry. Businesses subject to John Engler announced recently. The caseload for March declined the SOT already contribute, in a significant way, to both state to the lowest it has been since April, 1972. And the number of and federal revenues through other established tax individual recipients on welfare cases dropped to 449,771. The requirements.” last time the number of recipients was below 450,000 was in To support efforts to repeal the SOT, call your Member of August, 1971. Congress at (202) 224-3121 and ask him/her to co-sponsor Rep. Radanovich’s “Occupational Tax Equity Act.”

Judge rules that FDA can regulate tobacco but not tobacco advertising Q. What does it mean to say that FDA has jurisdiction over restriction, he also issued a stay of the access restrictions that were tobacco products but not the advertising of tobacco products? to take effect on August 28, 1997. In other words, the judge Under the ruling. FDA will be able to regulate the sale and ordered the FDA not to implement any of it’s August 28 distribution, but not the advertising and promotion, of tobacco provisions, including the self-service display ban, unless he (or products. In other words, FDA can impose access restrictions on the court of appeals) says otherwise. However, unless Judge tobacco, such as requiring retailers to card all tobacco purchasers Osteen’s ruling is overruled on appeal, the ban on self-service under the age of 27 and banning self-service displays. FDA also can displays will go into effect at some point in the future. (A stay impose label requirements on tobacco manufacturers, such as means that whatever was going to happen, like the self-serve display requiring a statement of intended use on packages. FDA, however, ban, has been frozen in place until further notice.) cannot require that advertisements for tobacco be black-on-white or Q. When will the self-service display ban become effective? restrict the location of tobacco advertisements. There is no way to provide an accurate time frame at this point. Q. What does the ruling mean for retailers? What we can tell you is that you should NOT make any changes to The ruling means that retailers can continue to advertise and your stores at this time. This case will be appealed and may go all promote tobacco products as they have in the past. Point-of-sale the way to the Supreme Court in which case there is a possibility advertising materials such as signs and posters can continue to have that the self-serve display ban may be overruled. color and pictures. Stores located within 1000 feet of public schools Q. What about the carding provision? and playgrounds can continue to display advertising materials outside. The requirement that retailers verify the age of all tobacco Under Judge Osteen's ruling, FDA cannot regulate any of these purchasers under the age of 27, as well as the establishment of a advertising and promotional materials and. therefore, store operators national minimum sales age, are access restrictions that Judge need not alter or take down any of these materials. Osteen ruled will remain in effect pending an appeal of his decision Q- Will stores have to take down self-service displays? that FDA has jurisdiction to regulate tobacco products. Judge No. Although Judge Osteen ruled that FDA can regulate access to Osteen did not stay these access restrictions. Therefore, retailers tobacco products and that the ban on self-service displays is an access must continue to follow these requirements or risk enforcement by FDA

FOOD & BEVERAGE REPORT, JUNE 1997.....29 Letters “Dear In defense of WIC Colleague:” a The following letter is from Stanley regulatory Garnett, Director of Supplemental would like to correct your in oversight of your operations. Food Program Division for the understanding of several facts Regarding the accusation that overreach by the United States Department of presented in the article. WIC micromanages licensing, Agriculture, It is in response to an First, relatively recent analysis of product lists, food prices and FDA article published in the Food & WIC expenditures of Federal food reimbursement, we would like to Beverage Report and the Food and nutrition services and explore further your meaning and Reps Ray LaHood (R-IL), Marketing Institute’s (FMI) Issues administration funds indicated that concerns. States are, of course, Matthew Martinez (D-CA) and bulletin by FMI President and Chief only nine percent of total dollars were responsible for the management of Robert Ehrlich (R-MD), the Executive Officer, Tim Hammonds. their programs within federal Dear Mr. Hammonds: regulatory guidelines which afford o rig in a l co sp o n so rs o f H .R. 76K, I am writing to express my them considerable flexibility. If sent the following "Dear personal disappointment in an article your objection refers to state’s Colleague" letter to fellow published in the March, 1997 issue of management of their food retailers members o f Congress urging the AFD Food & Beverage Report or their policies governing these support for legislation that would entitled, “WIC Should Feed Babies areas, then it may be a matter of prohibit the Food and Drug Not Bureaucrats.” First, I must say appreciating the cost containment Administration (FDA) from issuing that the title of the article was strategies states must employ. We fines against supermarkets and offensive. I was also disappointed by discussed these issues and claims you were quoted to have made other retailers for the sale of considerations during our cigarettes and smokeless tobacco regarding significant differences in aforementioned meeting with the products that are purchased by an the costs to administer the Food FMI WIC Task Force, during which adult o f legal age in accordance Stamp and WIC Programs, which we expressed our willingness to clearly misrepresented the facts. I explore with states the feasibility of with state law. used for program management (which revising their policies and Dear Colleague: includes vendor management among procedures in some of these areas. other duties). Obviously, this In that regard, we were pleased to We would like to call to your CLASSIFIED demonstrates only a marginal read mention of the Task Force’s attention to the Food and Drug difference in administrative meeting with WIC Program Administration’s regulation SUPPLIERS: Looking for ways to expenditures between the WIC and leadership and the National requiring all retail stores to verify a increase your market visibility? Let the Food Stamp Programs, which are Association of WIC Directors person’s age by requesting AFD show you how. Promotional significantly different in program size (NAWD) to discuss food retailers’ photographic identification, which opportunities through membership concerns with the program. We limitless. Call Dan Reeves at (810) and function. The balance of the 26 also must include date-of-birth, for would be receptive to, among other 557-9600. percent you cite is for program every customer who is under 27 Task Force suggestions, working benefits including client services, years of age wanting to purchase WARREN CORNER STRIP PLAZA— nutrition education and breastfeeding together to develop a best practices tobacco products. If you are as Dequindre and thirteen Mile Corner. and immunization promotion. manual for retailers and WIC concerned as we are over this Prime location, net 144,000 a year. Second, in the article you officials. Mr. Hammonds, we are 95% occupancy. 17,000 sq. ft. Asking described the WIC program as being committed to ensuring integrity and “overreaching” by the FDA, please 2.2 million. Ask for Wayne at (810) 997- accountability in the WIC Program. join us in cosponsoring H. R. 768, 3515. “hampered by excessive paperwork, overzealous store inspections and the And, we have genuinely tried to bipartisan legislation that disallows SUPERMARKET FOR SALE— Newly micromanagement of licensing, foster good relations and cooperation the assessment of fines and upgraded, 8 aisles (15,000 sq. ft.). with FMI, but your recent Resonably priced— located in Highland product lists, food prices and penalties on retail stores that are inflammatory language does little to Park. Serious offers only. (313) 868- reimbursement.” Quite the contrary, engaged in face-to-face legal sales 4433, ask for Joey. we consider that WIC requirements further these efforts. WIC has of tobacco products. always valued the role food retailers NW OAKLAND COUNTY store w/ ensure only basic oversight activities. To date there are 21 cosponsors play in its food delivery system, and SDD, SDM, Lotto for sale. Property With regard to your description of including: Reps. Spencer Bachus, is committed to working with the and business available price: WIC as overzealous in its inspection R-AL), Roy Blunt (R-MO), Jim 105K/130K, plus inventory. Terms of stores, you should know that vendor community and FMI and its Bunning (R-KY), Dave Camp (R- negotiable. Call 810-887-3887. federal WIC regulations require states WIC Task Force to achieve these MI), Helen Chenoweth (R-ID), SPECIAL— Baling wires, 14' x 14g. “to conduct on-site monitoring visits goals we need the help and and Howard Coble (R-NC). Vernon and 13’ x 14g. $30.00 per bundle. to at least 10 percent of their assistance of our State and local Junction PAper & Metal Company, authorized food vendors per year, cooperators and the vendor Ehlers (R-MI), Robert Ehrlich (R- 5650 McGregor, Detroit, (313) 554- selected on a representative basis, in community, all working together. MD), Bob Etheridge (D-NC), Paul 3705 or (313) 356-4499 ask for order to survey the types and levels of We believe a retraction and Gillmor (R-OH), William Goodling Harvey. abuse and errors among participating correction of the misinformation (R-PA), Tim Holden (D-PA), PARTY STORE— Northern Monroe food vendors and to take corrective contained in the aforementioned Donald Manzullo (R-IL), Matthew County. Owner retiring. Liquor, lottery, action, a appropriate...” Given that article is in order, and would Martinez (D-CA), Mike McIntyre meat/deli, beer and wine. Seller FCS sponsored studies have indicated appreciate your prompt attention to financing available. Real estate (D-NC), Buck McKeon (R-CA), levels of overcharging alone in over this request. included. Contact Jim Enright at Ron Paul (R-TX), Charles 10 percent of vendors investigated, Stanley C. Garnett Treadwell Real Estate Company, (313) Director Pickering (R-MS), Nick Smith (R- 287-2060. we do not believe this required level MI), Charles Stenholm (D-TX) and of monitoring to be either excessive Supplemental Food Program Roger Wicker (R-MS). We urge RETAIL MEMBERS: Coming soon— or overzealous. As retail managers, I Division watch this space for a new way to turn am sure you can appreciate our need United States Department of you to contact your representative your clutter into CASH. Starting in Agriculture and ask them to support this 1997, retail members can receive to ensure integrity in our program legislation. FREE classified ad space. Contact operations just as you include Tom Amyot at AFD for details. (810) integrity and quality control reviews 557-9600. 30.....FOOD & BEVERAGE REPORT, JUNE 1997 More Food for Unsaleables Continued from page 28 Thought from increase damage risks-moving decided in 1995 to send all David Lighthall products, for example). The product by hand instead of by unsaleables to a new center reclamation center charges stores a pallet, for example, he adds. Use operated by Damage Track’s flat $75 per banana box of of broken pallets still contributes parent, Supermarket Information • If nothing sticks to Teflon, incorrect product.” Raftery says. to damage in some distribution Systems. Inc., for both H-E-B and how do they stick Teflon to Esther tells Spartan retailers centers, according to Raftery. its suppliers. They tell us that the the pan? how to reduce time and valuable One of the most promising new single scan system is achieving space devoted to unsaleable ideas in unsaleables management significant cost savings. They need • Why is abbreviation such products at store level and improve is the operation of a reclamation no third party auditor, and both a long word? their cash flow by following the center by a third party to serve the sides report satisfaction after more company’s detailed guidelines for joint interest of distributor and than a year’s operation. It is a new • How do a fool and his returns. manufacturer. idea to watch. money get together? "We bill back for legitimate After operating its own -Reprinted with permission - ad hoc, damage within six months of reclamation center in San Antonio April 1997, • What was the best thing expiration date. We don't credit since 1982, H-E-B Grocery Co. David Lighthall Company, Inc. before sliced bread? razor cut tops. They are automatically donated," Esther explains. No grocery items are For AFD members: credited if returned without package contents. On the other hand, frozen or dairy packages BLUE CROSS must be emptied before they are returned. Spartan does not usually RATES REDUCED! charge vendors back for discontinued items. “We are not out to make money off manufacturers. We are operating to service our retailers,” Esther told us. Manufacturers told us their Now you can have number-one best practice is to develop a comprehensive unsaleables policy, communicate it clearly to all customers, and treat everyone fairly. the best "We have learned a lot by working with GMA, FMI and third party partners,” says SC Johnson’s Randy DeKeuster. “Reverse for less. logistics is a matter of improving processes in bringing product back to the company, so it’s more efficient. Good data on product AFD members want the best for themselves and their families. mixes flowing through the In health coverage, the best has been Blue Cross and Blue Shield reclamation centers help us open of Michigan for more than a half-century. up constructive dialogue with our trading partners. Now, through an industry rating change, AFD members can "The big thing for us is proper enjoy the benefits of being Blue for much less than before. disposition of the product. We You'll have the advantage of the most widely recognized don’t want our insecticides or and most widely accepted health card of all. drain cleaners sent to a landfill. Even with the new, lower rates, you can choose from several We can do a better job of benefit options with various levels of co-pays and deductibles. disposing of it. It’s an extra Select what best meets your needs and your budget. expense for us, but we want to be good product stewards. Our With Blue, you can also buy dental, vision, hearing and trading partners respect that, and prescription drug coverage at a nominal extra charge. they're very agreeable.” If you've wanted Blue Cross coverage but hesitated because of the cost, ask now about the new, dramatically Bad practices persist reduced rates. Some bad practices persist. Dan For information on AFD's Blue health coverage options, call Raftery still hears complaints Judy Mansur at 1-800-66-66-AFD about reclamation centers that deny manufacturers access to products once they have been scanned and invoiced. Some distributors are still using old fashioned handling techniques that

FOOD & BEVFRAGE REPORT. JUNE 1997.....31 Snacks Continued from front page Industry leaders like Nabisco America goes for reduced-fat and Frito-Lay have made a commitment to the low-fat snacks cookies and bakery products movement. Furthermore, the approval of olestra by the Food Twinkies. Little Debbie. Entenmann’s. Sales of bakery snacks in the U.S. topped $4.7 billion in 1996, according to The and Drug Administration (FDA) want to eat whatever they feel like, Market for Bakery Snacks, a new report from the New York for use as a substitute frying oil in in whatever quantities they want. City-based consulting and research firm, FIND/SVP. One of the snack foods has the potential to What this means is that what most important trends in recent years has been the rapid growth significantly grow the snack consumers say they're eating is of reduced-fat products. Nearly all the major bakeries are now category. often different from actual involved in the low-fat market — even those that originally While there is no question that consumption. This certainly resisted the trend. In-store bakeries are growing too. In 1996 the 1990s have brought a new explains why. despite the national they raked in $6.5 billion in sales. sense of health consciousness, the obsession with fat, people are not reality — as observed in Tim e turning to carrot sticks and celery magazine — is that Americans when they snack.

Michigan's Leader in Liquor Liability for 9 years running! Food industry increases Rated B+ (Very Good) by A.M. Best recycling effort A new Grocery Marketing Association report reveals 30 Our outstanding service has made us #1 percent growth in grocery packaging recovered for recycling. The total amount of grocery packaging recovered for recycling • Competitive Rates doubled between the 1980s and 1990s, and grew an additional 30 percent between 1900 and 1993, • Endorsed by AFD for 8 consecutive years according to a recent update to GMA’s “Grocery Packaging in Municipal Solid Waste.” • Never Assessable, no deductibles, policy fees The report also shows that the amount of grocery packaging or surplus lines tax disposed of in landfills and incinerators decreased 34 percent on a per capita basis since 1980, • Available through the Independent Agent network and that total grocery packaging is with over 800 agencies to serve you 10.5 percent of all discarded municipal sold waste. “This report will be instrumental in our advocacy efforts at the state level,” said Elizabeth Seiler, GMA Director, 1-800-229-NPIC Environmental Affairs. The report, which tracks the amount of 1-810-357-3895 FAX grocery packaging generated, Admitted, Approved and Domiciled in Michigan recovered and discarded from 1970, and makes projections to the year 2000, was unveiled at the or call AFD at 313-557-9600 or 800-66-66-AFD recent New York Department of Environmental Conservation’s 7th Annual Recycling Conference. —GMA

32.....FOOD & BEVERAGE REPORT, JUNE 1997 Products The television ad will Borden introduces feature a 30-second New packaging Molson. “The new packaging and television spot featuring Classico Italian advertising should boost those the popular McKenzie numbers even more in the months Brothers portrayed by Corner Home for Molson ahead.” Rick Moranis and Dave The new U.S. packaging will be Thomas. The brothers Meal Replacement Canadian introduced into key Molson Canadian trick a truck driver into Molson Canadian continues its markets in May, including up-state leaving behind his trailer concept strong marketing push this month, New York, Michigan and Vermont. ____ of Molson Canadian at rolling out in key markets dressed for The 11.5 ounce brown bottle will the border because Canadians enjoy Consumers are choosing take-out even greater success in new have a bright white label prominently the beer so much, they want to keep it meals 61 percent more often than they packaging, and backed by its first- displaying a red maple leaf and dark for themselves. did 10 years ago. according to ever U.S. television ad campaign. blue and red lettering with gold Molson Canadian, along with Chicago-based food research firm “Molson Canadian sales are accents. The cans and cases will Molson Golden and Molson Ice, is NPD. They are voicing, through already up 13 percent over last year in reflect the same graphics. brewed in Canada and imported to the spending patterns and lifestyle the U.S. and more than 30 percent in There are no plans, however, to U.S. by Martlett Importing, a division changes, a desire for complete bars and restaurants,” notes Jeff change the packaging for Molson of Molson Breweries, U.S.A., Inc., homestyle meal solutions that are Kellar, senior brand manager for Golden or Molson Ice. the nation’s second largest importer. | quick, wholesome, convenient, preparation-free and cost effective. In response to this growing consumer need. Borden Italian Foods has introduced Classico Italian Comer,M. a revolutionary branded home-meal-replacement concept developed especially for the retail grocery industry. The Borden concept features a organization in America announced the largest effort ever to reduce kiosk/module design that allows supermarket foodservice operators to youth smoking. More than 150,000 retailers nationwide have joined create either a free-standing Italian carry-out kiosk or a module which forces through the Coalition for Responsible Tobacco Retailing to can be incorporated into an existing prevent the sale of tobacco products to kids. deli area. With Classico Italian Comer, retailers can provide customers with high-quality, made-to- R.J. Reynolds Tobacco Company is proud to support this order Italian entrees, salads and side unprecedented effort. Youth should not smoke. That is our position. dishes using Borden's popular Classico® Pasta Sauces and the And since 1992, we have provided more than 70,000 retailers a revolutionary Novita™ shelf-stable pastas. training program we developed called “Support the Law" to teach Any of the Classico Italian entrees sales personnel how to avoid underage sales of tobacco products. can be prepared (either by supermarket staff or in self-serve Providing a wide range of retail signage and teaching tools, “We applications) in less than a minute-an enticing prospect for consumers on Card" does even more. That’s why RJR is discontinuing “Support the run. Not only that, dishes can be easily reheated without changing the Law" and endorsing these outstanding materials. containers. Should a patron choose to cat part of a Classico meal one day America's retailers have taken a leadership position on the issue of and save the rest for later, it's not a youth access. R.J. Reynolds is proud to help them make it happen. problem. They can reheat and enjoy without losing texture or flavor. The first-of-its-kind authentic Italian concept. Classico Italian Comer provides retailers with several module options. This allows them to create a customized Italian carryout Tobacco Company area within their stores based on individual space and labor needs. • With the Hot Food module, staff prepares made to order pasta and COALITION FOR RESPONSIBLE TOBACCO RETAILING sauce items from children’s portions through sizes for a family of four. National Association of Convenience Stores • National Grocers Association • American Wholesale Pasta entrees are accompanied by Marketers Association • International Mass Retail Association • National American Wholesale fresh breadsticks and Caesar salad. The self-service module is an Grocers Association • Food Marketing Institute • National Retail Federation • National Association addition to the hot food program of Chain Drug Stores • National .Association of Beverage Retailers • National Association of Trucks top and is ideal for self-service delis. Operators • Tobacco Institute • Smokeless Tobacco Council Pasta and sauce combinations are simply portioned, packaged and sold from a refrigerated self-service case. For more information call 1-800-934-3968 This offers retailers a w ay to enhance service levels and capture sales of food for later consumption.

FOOD & BEVERAGE REPORT, JUNE 1997.....33 SUPPORT THESE AFD SUPPLIER MEMBERS

AUTHORIZED LIQUORAGENTS: tBrown & Williamson Tobacco ...... (810) 350-3391 Oscar Mayer & Company ...... (810) 488-3000 Sal S. Shimoun, CPA ...... (Kilo 424-94% General Wine & Liquor ...... (313)852-3918 ^Hcrshey Chocolate U S A ...... (810) 380-2010 Pclkic Meat Processing...... (906) 353-7479 Sesi & Sesi. Attorneys (XlOi ''86060 National Wine & Spirits ...... (888)697 6424 M & M Mars ...... (810) 887-2397 Potok Packing Co (313)893-4 Edward A Shuttle. P C . Attorney (KIOi 2*1-206 ...... (888) 642-4697 IPhilip Moms U S A ...... (313)591-5500 Ray Plcva Product' (616)228-5000 Southfield Funeral Home tllOi 569-10% Statewide Financial Services...... (8l0i 9t2 8610 Encore Group/Trans-Con, Co. (888) 440-0200 R J Reynolds...... (810)475-5600 Smith Meal Packing. Inc (313) 458-9530 Shemi's Candies...... (517)756-3691 Southern Sausage. Inc...... (313) 369 8902 Thomas P Soltys. CPA (6I6> 69H-HB Wolverine Cigar Company...... (313) 554-2033 Strauss Brothers (<• ...... (313)832-1600 Tclcchcck Michigan. Inc (810• 354-50% B A K E R IE S : Sw.ft-Eekrich ...... (313)458-9530 Transactivc Corporation (404i 3816747 Ackroyd's Scotch Bakery &Sausage .... (313) 532-1181 , CATERING/HALLS Texas Brand. Inc ...... (708) 526-0620 Travelers Expr^s Co...... I-800 321-5611 Archway Cookies ...... (616) 962-6205 Winter Sausugc Mfg . Inc...... (810) 777-9080 Ultracom Telecommunications (810) 350-2000 Awrey Bakeries, Inc ...... (313) 522-1100 JCountry House Catering ...... (517) 627-2244 Emerald Food Service...... (810) 546-2700 Wolverine Packing Company ...... (313)568 1900 Vend A M alic...... (810 585 7700 Dolly Madison Bakery ...... (419)691-3113 Voice Mail Systems. Inc ...... (810) 398-0707 Interslaie Brands Corp...... (313) 591-4132 Gourmet\ House. Inc...... (810) 771-0300 Karen's Kafe at North Valley ...... (810) 855-8777 MEDIA: Western Union Financial Senvces...... (8 10) 449- 3860 Koepplinger Bakencs, Inc...... (810) 967-2020 Whitey's Concessions ...... (313) 278-5207 Oven Fresh Bakery...... (313) 255-4437 Nutrition Services...... (517) 782-7244 The Beverage Journal...... 1-800-292-2896 Penna's of Sterling...... (810) 978-3880 Booth Newspapers...... (616) 459-1567 Wolverine Real Estate Services...... (810) 353-7800 S & M Biscuit Distributing ...... (313) 893-4747 WSB Advisors (810) 594-1020 Schafer Bakery ...... (810)294-9166 Southfield ; Manor...... (810) 352-9020 C&G Publishing. Inc ...... (810) 756-8800 Sunshinc/Salcmo...... (810) 352-4343 St. George Cultural Center...... (810) 335-8869 Daily Tribune...... (810)541-3000 St M an's Cultural C enter...... (313)421-9220 Detroit Free Press ...... (313)222-6400 STORE SUPPLIES/EQUIPMENT: Taystee Bakeries ...... (810)476-0201 Tina’s Catering ...... (810) 949-2280 Detroit News ...... (313)222-2000 A & B Refrigeration...... (313) 565-2474 Detroit Newspaper Agency...... (313) 222-2325 All-amcncan Cash Register ...... (313) 561-4141 B A N K S : DAIRY PRODUCTS: Gannett National Newspapers...... (810) 680 9900 Amen-Copy...... 1-800-888-1613 Comenca Bank ...... (810) 370-5204 American Dairy Association...... (517) 349-8923 Macomb Daily ...... (810)296-0800 Belmont Paper & Bag Supply...... (313) 491-6550 First Federal of Michigan...... (313) 965-1400 Bemea Food Service...... I 800-688-9478 Michigan Chronicle...... (313) 963-5522 Bollin Libel Systems ...... 1-800-882-5140 First of America—S.E.M ...... (810) 399-5501 Brehm Broaster Sales ...... (5 l7 )427-5858 Dairy Fresh Foods. Inc...... (313) 868-5511 Outdoor Systems Advertising...... (313)556-7147 Greenfield Mortgage Co...... (313) 274-8555 Brinkman Safe ...... (810) 739-1880 Golden Valley Dairy ...... (810) 399-3120 WDIV-TV4 ...... (313)222-0643 Madison National Bank...... (810) 548-2900 Cool Industries...... (313) 343-5711 Independent Dairy Inc...... (313) 246-6016 WJBK-TV2 (810)557-2000 Michigan National Bank ...... 1-800-225-5662 London's Farm Dairy...... (810) 984-5111 WWJ AMAVJOI-FM ...... (313) 222-2636 DCI Food Equipment ...... (313)369-1666 N.B D..N A...... (313)225-1581 | McDonald Dairy Co (800)572-5390 WWWW AM/FM...... (313) 259-4323 ENVIPCO...... (810) (615.9366 Standard Federal Bank...... (810) 637-2543 Melody Farms Dairy Company...... (313) 525-4000 First National Pallet Rental...... (314.469-2211 Hobart Corporation ...... (313i 697 3070 Milk-O-Mal...... (313) 864-0550 NON-FOOD DISTRIBUTORS: International Bankard Service...... (810. 569 )012 BEVERAGES: Poinle Dairy...... (810)589-7700 Advanced Formula Products, Inc...... (313) 522-4488 MMI Distributing...... (313)582-4400 Absopure Water Co...... I-800-334-1064 Siroh's Ice C ream ...... (313) 568-5106 Albion Vending...... (517) 629-3204 Metro Equipment Inc ...... (313)5716655 Action Distributing...... (810) 591-3232 Superior Dairy Inc...... (810)656-1523 Items Galore. Inc...... (810) 774-4800 Michigan Bale Tic Company ...... (313) 925-1196 American Brokers Association...... (810) 544-1550 Tom Davis & Sons Dairy...... (810) 399-6300 Ludington Distributors...... (313) 925-7600 Anheuser-Busch Co ...... (800) 414-2283 Midwest Butcher & Deli Supply ...... (810) 588-1810 Anzona Beverages ...... (810) 777-0036 Murray Lighting Company ...... (313) 341-0416 EGGS & POULTRY: POTATO CHIPS/NUTS/SNACKS: Bacardi Imports, Inc...... (810) 489-1300 National Food Equipment & Supplies . (810.960-7292 Belter Made Potato C hips...... (313)925-4774 Barton Beers ...... (810)549-4730 Linwood Egg Company ...... (810) 524-9550 North American Interstate (810) 543 1666 Country Preacher...... (313) 963-2200 Bellino Quality Beverages. Inc ...... (313)946-6300 Loewcnstein P o u ltry ...... (313)295-1800 POS Systems Management. Inc (810) 689-4608 Detroit Popcorn Company...... 1-800-642-2676 The Bo-ton Beer Company ...... (313) 441-0425 Refrigeration Engineering. Inc (616) 453-244l Fnlo-Lay. Inc ...... I-800-24FRITO Brooks Beverage Mgl.. Inc...... (616) 393-5800 FISH & SEAFOOD: The Rib House...... (313 ) 274-7800 Gcrmack Pistachio Co...... (313) 393-2000 Brown-Forman Beserage Company ...... (313) 453-3302 Seafood Intemational/Salasnek, Inc...... (313) 368-2500 Sales Control Systems...... (810) 3560700 Grandma Shearer'-. Potato Chips ...... (313) 522-3580 Cadillac Coffee...... (313) 369-9020 Tallman Fisheries...... (906) 341-5887 Saxon. Inc...... (810) 398-2000 Kar Nut Products Company ...... (810) 541-7870 Canadian Arctic Beverage ...... (416) 676-0201 Waterfront Seafood Company...... (616) 962-7622 Taylor Freezer...... (313) 525-2535 Michigan Popcorn & Fast Food Supply .... (313) 861-3535 Canandaigua Wine Co...... (313) 753-5673 TOMRA Michigan...... (810) 589-0700 Michigan Rainbow Corp 313-365-5635 Central Distributors...... (313) 946-6250 FRESH PRODUCE: Nikhlas Distributors (Cabana)...... (313) 571-2447 Coca-Cola Bottlers of Ml ...... (313)397-2700 WH0LESALERS/F00D DISTRIBUTORS: Aunt Mid Produce Co...... (313) 843-0840 Variety Foods, Inc...... (810) 268-4900 Consolidated Wine & Spirits ...... (810) 772-9479 Detroit Produce Terminal...... (313) 841-8700 Bremer Sugar...... (616) 772-9100 Vitner Snacks...... (313) 365-5555 Coors Brewing Co...... (313) 451 • 1499 Sunnyside Produce ...... (313)259-8947 Capistar. Inc ...... (517)699 3605 Decanter Imports ...... (810)344-6644 Vitale Terminal Sales...... (313) 843-4120 Capital Distributors...... (313) 369-2137 E & J Gallo Winery...... (810) 643-0611 PR0M0TI0N/ADVERTISING: Central Foods ...... (313) 933 2600 Advo System...... (313)425-8190 Eastown Distributors...... (313) 867-6900 ICE PRODUCTS: Consumer Egg Packing ...... (810) 354 5388 Intro-Marketing ...... (810) 540-5000 Dairy Fresh Foods. Inc...... (313) 868-5511 Everfresh Beverages...... (810)755-9500 America's Ice. Inc ...... (313) 491-9540 J.K Kidd & Co ...... (810)647 6601 Dan French Inc...... (810) 544-1740 Faygo Beverages. Inc...... (313) 925-1600 Midwest Ice...... (313) 868-8800 J R Marketing-Promotions...... (810) 296-2246 Detroit Warehouse Co...... (313) 491- 1500 Frankenmuth Brewery ...... (517)652-6183 Union Ice...... (313) 537-0600 General Wine...... (313) 867-0521 JDA Associates...... (313) 393-7835 EBY Brown. Co...... 1-800-532-9276 Great Lakes Beverage ...... (313)865-3900 PJM Graphics ...... (313)535-6400 Family Packing Distributors ...... (810)644 5353 INSECT CONTROL Great Lakes Marketing...... (313) 527-1654 Promotions Unlimited. Corp...... (800) 992-9307 Foodland Distributors...... (313) 523-2100 Great State Beverage...... (313) 533-9991 Rose Extermination (Bio-Serv) ...... (313) 588-1005 Safeguard Business Systems ...... (810) 548-0260 Garden Foods...... (313) 584-2800 Guinness Import Company...... (810) 786-9176 Stanley's Advertising & Disl ...... (313) 961-7177 Gourmet International. Inc ...... 1 -800-875-5557 Hcublein...... (313) 594-8951 INSURANCE: Stephen's Nu-Ad. Inc...... (810) 777-6823 Grand Gourmet Specialties. Inc...... (616) 975- 3400 Hiram Walker & Sons. Inc...... (810) 948-8913 Alphamenca Insurance Agency ...... (810) 263-1158 H & O Distributors...... (313) 4934011 House of Seagram ...... (810)262-1375 America One ...... - ...... (517)349-1988 RESTAURANTS: Hamilton Quality Foods ...... (313) 728-1900 Hubert Distributors. Inc ...... (810)858-2340 American Principal Group ...... (810) 540-8450 The Golden Mushroom...... (810) 559-4230 The Happy Hive ...... (313 ) 562 3707 Intrastate Distributing ...... (313) 892-3000 Arabo & Arabo Insurance Assoc...... (810) 352-1343 Palace Gardens...... (810) 743-6420 I & K Distributing...... (313)491 5930 J Lewis Cooper Co...... (313)835-6400 Blue Cross/Bluc Shield...... 1-800-486-2365 JF Walker...... (517) 787-Mi L & L W.ne W orld...... (810) 588-9200 Capital Insurance G ro u p ...... (810) 354-6110 SERVICES: Jerusalem Foods ...... (313) 538-1511 Lifestyle Beverage Corp ...... (708) 503-5433 CoreSource...... (810) 792-6355 AARMCO Security...... (810) 968-0707 Kay Distributing...... (616) 527-0120 Lotts Distributors ...... (313)336-9522 Gadaleto. Ramsby & Assoc...... (517) 351-4900 A Catered Affair ...... (313) 393-5311 Keebler Co...... (313)455-26% Metro Beverage Inc ...... (810 ) 268-3412 Golden Dental ...... (810)573-8118 AirPagc ...... (810) 547-7777 Kehc Food Distributors...... I 800-HKH-46II Miller Brewing Company ...... (414)259-9444 Great Lakes Insurance Services...... (810) 569-0505 Akram Namou. C.P.A...... (810) 557-9030 Kramer Foods Company (810)585-8141 Mohawk Distilled Products I 800-247 2982 Health Alliance Plan...... (810) 552-6000 American Mailers ...... (313)842-4000 Lipan Foods...... (810) 469-01)1 Nantucket Nectars...... (617) 789-4300 IBP Insurance Group. Inc ...... (810) 354-2277 Amerilech Pay Phone Services...... I 800-441 -1409 Mclncmey-Millere Bros...... (313) 8.33-8660 Nestle Beverages ...... (810) 380-3640 Kantcr Associates...... (810) 357-2424 AMNF.X Long Distance Service ...... (810) 559-0445 Midwest Wholesale Foods ...... (810) 744 2200 Oak Distributing Company...... (810)674-3171 Frank McBnde J r. Inc...... (810)445-2300 Bcllanca. Beattie. DeLisle ...... (313) 964-4200 Miesel/Sysco Food Service...... (313) 397 7990 Pabst Brewing Co ...... 1 -800-935-6533 Miko & Assoc...... (810)776-0851 Builen Tamblin Steensma & Assoc ...... (616) 949-0490 Mucky Duck Mustard Co...... (810)683-5750 Paddington Corp ...... (313) 345-5250 Monroe-George Agency ...... (810)489-9480 Cellular O ne...... (313)590-1200 Norquick Distributing Co ...... (313) 522 1000 Pepsi-Cola Bottling Group - Detroit I 800-368-9945 Murray. Benson. Recchia ...... (313)831-6562 Central Alarm Signal...... (313) 864-8900 Northwest Food Co. of Michigan...... (3 1 3 ) 368 2500 -Howell .... 1-800-878-8239 North Pointe Insurance ...... (810) 358-1171 Century Marketing...... (419) 354-2591 Riviera Food Corp...... (313 ) 538-3020 -Pontiac ...... (810)334-3512 Rocky Husaynu & Associates...... (810) 557-6259 Chcckcare Systems :...... (313) 263-3556 Robert D Arnold & Assoc...... (810) 635-8411 Pelitpren. Inc ...... (810) 468-1402 SelectCare...... (810)637-5391 CIGNA Financial Advisors...... (810)827-4400 S Abraham & Sons...... (810) 754-0220 Powers. Dist ...... (810)682-2010 Sinawi Insurance Group ...... (810) 357-8916 C&J Parking Lot Sweeping. Inc...... (801) 759-3668 Sacked Ranch ...... (517) 762-50*9 R M G.lligan, Inc...... (810) 553-9440 The Wellness Plan ...... (313) 369-3900 Community Commercial Realty Ltd .....(810) 569-4240 Sam's Club—Hazel Park ...... (810)518-4407 Royal Crown C ola...... (616) 392-2468 Willis Corroon Corp of Ml ...... (810)641-0900 Dean Witter Reynolds. Inc ...... (810) 258-1750 Sam'sClub—Southfield ...... (810) 354-1101 Sandler-Stone Co...... (810)674-1100 San Benedetto Mineral Waters...... (313) 847-0605 Detroit Edison Company...... (313) 237-9225 Scot I-ad Foods. Inc...... (419)228-3141 Serv-U-Matic Corporation...... (313) 243-1822 MANUFACTURERS: Dialogue Marketing...... (810) 827-4700 Sherwood Foods Distributors...... (313) .366-3100 Seven-Up of Detroit ...... (313)937-3500 Amato Foods...... (313) 295-3337 Dynasty Funding...... (810) 489-5400 Stroh Brewery Company ...... (313) 446-2000 Eco-Rite. Inc...... ?■-...... (810) 683-2063 State Fair Wholesale ...... (313)193-4629 Bil Mar Foods...... 1-800-654-3650 State Wholesale Grocers ...... (313) 567 7654 Thompson Beverage Co...... (313) 439-2404 Eden Foods...... (517) 456-7424 Follmer. Rudzewicz & Co . CPA...... (810) 355-1040 Tn-County Beverage ...... (313) 584-7100 Food Industry Professional Network (810) 353-5600 Spartan Stores, Inc...... (313) 455-1400 Fine Manufacturing ...... (810)356-1663 Sunlight Distributors .... (810) 742 5129 Unibrcw USA...... (954) 784-2739 Garmo & Co . CPA ...... (810)737-9933 Groeb Farms ...... (517)467-7609 Super Food Services ...... (517)777-1191 United Disullcrs U S A ...... (810)629-7779 Goh's Inventory Service. (810)353-5033 Home Style Foods. Inc ...... (313) 874-3250 Superior Fast Foods, Inc ...... - ...... (810)296-7111 Universal Ginseng and Beverage. Inc (810) 754-3800 Great Lakes Data Systems ...'...... (810) 356-4100 Jaeggi Hillsdale Country Cheese (517)368-5990 Tiseo's Frozen Pizza Dough ...... (810) 566-5710 Vintage Wine Co...... (810)294-9390 Independance One Kalil Enterprises. Inc ...... (313)527-7240 Tony's Pizza Service...... 1-800-247 1523 Viviano Wine Importers. Inc...... (313) 883-1600 Investment Group...... 1-800-622-6864 Key West Soda Life Preserver ...... (305) 296-0005 Trepco Imports...... (810)546 3661 Warner Vineyards...... (616) 657-3165 Kraft General Foods...... (313) 261 -2800 Infinity Communications Corp (810) 442-0067 Karoub Associates...... (517) 482 5000 Value Wholesale ...... (810) 967-2930 West End Soda & Fruit Brew ...... (810) 231-5503 Michigan (Pioneer) Sugar ...... (517) 799-7300 Weeks Food Corp ...... (810)727-3515 Law Offices garmo & Garmo...... (810) 552-0500 Monitor (Big Chief) Sugar...... (517) 686-0161 Ypsiland Food Co-op...... (313)483-1520 BROKERS/REPRESENTATIVES: Nabisco. Inc...... ::.... (810)478-1350 Market Pros ...... (810) 349-6438 Bob Arnold & Associates...... (810) 646-0578 Nestle Food Company ...... (810) 380-3670 Menczer& Urcheck P C.. CPA...... (810) 356-1620 Red Pelican Food Products...... (313) 921-2500 Metro Media Associates...... (810) 625-0700 ASSOCIATES: DMAR.Inc...... (810)553-5858 Amencan Syncrgistics...... (313)42 7-4444 Singer Extract Laboratory...... (313)345-5880 Michigan Bell...... (810) 221-7310 The Greeson Company...... (810) 305-6100 Basket C ase...... (313)831-4431 Stadium Club Foods. Inc...... (810) 332-8530 Midwest Autotcl ...... (810) 960-3737 Hanson Faso AssoC...... <810) 354-5339 Herman Rubin Sales Co (810) 354 6433 Strauss Brothers Co ...... (313)832-1600 MoneyGram ______...... - ...... (810) 305-7057 J B. Novak & Associates ...... (810) 752-6453 Livcmois-Davison Florisl...... (810) 352-0081 James K Tamakian Company ... (810)424-8500 Tony's Pizza Service ...... (810)634-0606 Mulli-gard/Audio Alert...... (313) 562-2850 Nationwide Communications (810) 968-0412 Minmch's Boats & Motors (810) 748-3400 McMahon & McDonald. Inc...... (313)416-7000 Network Real Estate Services...... (810) 539-0900 Sigma Associates. Inc (313 ) 963 9700 Merit Sales Corp...... (810) 569-3634 MEAT PRODUCERS/PACKERS: Ncxtel Communications '...... (810)213-3100 Wileden& Assoc ...... (810)588 2351 Paul Inman Associates ...... (810) 626-8300 Country Preacher ...... (313) 963-2200 Paul Meyer Real Estate...... (810) 398-7285 Wolverine Golf Club. Inc (810)781-5544 Sales Mark ...... (313)207-7900 General Provision. Inc ...... (313) 393-1900 PC Pro Shop ...... (810)853-6680 Stark & Company (810)851-5700 E.W Grobbel Sons. Inc ...... (313) 567-8000 PC Specialties ...... (248)594-3255 Trepco...... (810) 546-3661 Hart.g Meats...... (313)832-2080 Potol Packing Co...... (313) 893-4228 UBC Marketing...... (810) 574-1100 Hillshire Farms & Kahn's (810) 778-3276 REA Marketing ...... (517)386-9666 VIP Food Brokers International...... (313) 885-6156 Hygrade Food Products...... (313) 464-2400 Franki Smith's Rc4C

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