Food Basics' Advertising Questioned
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Vol. 15, No. 6 PORT The official publication of the Associated Food Dealers of Michigan June 2004 Food Basics’ Advertising Questioned By Michele MacWilliams Four of O’Brien’s Amid much fanfare, on Tuesday products that March 30, The Great Atlantic & were listed in Pacific Tea Company (A&P, NYSE: Food Basics’ GAP) opened 10 every-day-low- circular were price Food Basics grocery stores mispriced and throughout Metro Detroit giving additional items away a $70 store gift certificate on store signs in every hour. The $70 was significant Food Basics because A&P officials maintain that carried incorrect $70 buys the same amount of information groceries that $ 100 buys at a about O'Brien’s, conventional supermarket. according to Their claim may or may not be Yono. true. According to a competing In the sample retailer, information that Food Basics shopping cart list included in their sale circulars and on their signs is misleading and - in Food Basics, some cases - just plain untrue. continued on Munim Yono, owner of O'Brien’s page 12. Supermarket in Ecorse, was outraged to find that Food Basics had compared a sample shopping cart of House Defeats Tobacco Tax Hike - For Now food at his store, and the local Due in large part to intense lobbying by AFD and our coalition, on Kroger to Food Basics. All shopping Wednesday, May 19, the Michigan House of Representatives rejected Bead howAFD’s Board helps you .. 3 took place on March 17, 2004. Governor Granholm’s proposed 75-cent per pack cigarette tax hike, which However, Food Basics didn’t open Court dismisses unwholesome would have increased the tax to $2 per pack. Two versions, the Governor’s food case .......................................4 for business until March 30. which and the Republican’s plan were debated. The Republican plan would have makes it difficult to compare, and only boosted the tax on cigarettes, not other tobacco products like cigars and AFD supports efforts to stop easy to lower prices once the paraphernalia sales .................6 chewing tobacco. competition's prices are readily After hours of negotiations, the GOP agreed to abandon their plan and hold Meet State Rep. Brandenburg . 10 available. The circular listed a vote on the governor’s. The bill fell 11 votes short of passage. However, on O'Brien’s prices as the highest - 43 Mug i Jug hosts wine tasting May 19 the House did move to reconsider the tax and we expect that they will percent higher than those listed for benefit ............................................ 12 take the matter up before the end of May (after this publication's printing Food Basics. However, Yono went date.) Supreme Court to hear Michigan back in his computer to March 17 In other legislative matters, it is also important to note that the Senate may Internet Alcohol case .................... 13 and ran bar scans of all the listed move on a liquor tax increase. AFD will keep its members posted. Value Center opens to rave products. reviews........ ............................... 22 June is Dairy M onth Associated Food Dealers PRSRTSTD 18470 W. 10 Mile Road U.S. Postage Dairy Industry Launches Southfield, Ml 48075 PAID DETROIT, Ml "Healthy Weight with Dairy" Campaign Change Service Requested PERMIT #36 The International Dairy Foods marketing efforts tout scientific Association (IDFA), Milk Processor research that suggests a link between Education Program (MilkPEP) and dairy consumption and reduced body Dairy Management Inc.™ (DMI) are weight. The campaign began last in the process of rolling out the October and continues with a new dairy industry's new "Healthy program "Milk your diet. Lose Weight with Dairy Campaign". weight!" from June 1 through National advertising and local Dairy, continued on page 4. 2 | AFD Food & BeverageREPORT EXECUTIVE CO M M ITTEE Chairman’s M E S S A G E Ronnie Jamil Chairman Mug & Jug Liquor Stores AFD’s Board of Directors is Actively Involved Fred Dally Vice Chair Membership This is truly not the case with concerns about food stamp fraud to Medicine Chest AFD's board of directors. I can’t AFD, Terry Farida met with Food & Thomas Welch say that I’ve ever seen a more Nutrition Services personnel to Vice Chair Legislation involved group. From planning discuss the issues and develop a Hollywood Super Markets events to checking financial remedy strategy. Gary Davis statements, not a day goes by where • Mike Rosch, Joe Bellino and Vice Chair Long Range Planning Tom Davis & Sons Dairy Co. the AFD staff doesn’t interface with Thom Welch have been actively and its board members. Here are just a aggressively helping AFD pursue its Chris Zebari few examples of recent AFD board legislative goal of increasing the Vice Chair Community Relations New Hudson Food Market member involvement: liquor discount - the first increase in • Fred Dally met numerous times over 22 years. Al Chittaro with Detroit Mayor Kwamie - John Denha helped open Treasurer Faygo Beverages, Inc. Kilpatrick, his representatives and productive dialogue with Nash By Ronnie Jamil the Detroit Free Press and Detroit Finch, encouraging their executives Jim Garmo News editorial boards to present the to become more involved with AFD. Secretary AFD Chairman Shoppers Valley Market retailer point of view regarding • Earl Ishbia and Emesto No matter what the company, liquor store inspections (see related Ostheimer of Sherwood Foods were story, page 4.) instrumental in planning and EMERITUS DIRECTORS association or charity, becoming a board member is both a privilege • Thom Welch, Gary Davis, Al executing a very successful trade Ttrry Farida .Value Center Markets and a position of responsibility. Chittaro, and Chris Zebari have been show this spring. The well-attended Sam Dallo....................................In ‘N'Out Foods instrumental in helping oversee show is a gTeat benefit to all AFD Bill Vivlano................................... House of Prime However, the amount of time and Mark Karmo ................Golden Valley Food Center attention that the position requires issues of the sale of AFD’s members. NabbyYono.................. ........Orchard Food Center varies greatly from company to Southfield building and the lease of • For the past three years, Tom company and board to board. Some the new office space. All this was Waller has been a key asset to done while keeping AFD's overall AFD’s Foundation Golf Committee, RETAIL DIRECTORS boards do little more than meet annually and give their nod to those finances healthy, and with future helping increase involvement and Joe Bellino, Jr..............Broadway Market, Region 2 growth in mind. bring in new sponsors. This year we John Denha..................................8 Mile Foodland who are in charge of daily James H ooks............................... Metro Foodland operations. • When the USDA brought their were able to increase our Nick K lzi..............................................Family Fare scholarships from $1,000 to $1,500 N u N a im i.....................Thrifty Scot Supermarket each, for 30 deserving students. John Pardington............Holiday Market, Region 1 Tom has also served as a valuable Tom Rubel ..............Spartan Stores, Inc. Region 3 The Grocery Zone liaison between AFD and Farmer MikeShina................ ............ Krown Supermarket By David Coverly Brian Yaldoo ............................ Park Place Liquor Jack, encouraging better communications. • When AFD President Mike SUPPLIER DIRECTORS Sarafa arranged for an editorial staff Frank B o d i..............................Pernod Ricard USA member of the Detroit Free Press to ^ khbia..................Sherwood Food Distributors tour some Detroit stores. Mike Shina Mike R osch................. General Wine & Liquor Co. Jim Trischett ..................... Anheuser Busch, Inc. and James Hooks stepped up to the Ctok W alker........................ Coca-Cola, Region 6 plate and welcomed the visitors. Tom Waller ........CROSSMARK Sales Agency. What the Free Press saw were Region 5 examples of Detroit's gems - - D STAFF & CONSULTANTS beautiful, clean stores run by Michael G. Sarafa ............................ President independent retailers. Dwiel Reeves ................Executive Vice President • As its co-chair, John Pardington Michele MacW illiam s..................Vice President of spent a great deal of time to make Communications the AFD Trade Dinner a success. Cheryl Tw igg......................................... Controller Behind the scenes he spent countless Joseph D. Sarafa .. .Director of Special Projects C*thy W illson................Director of Special Events hours to provide AFD with access to R*y ......................... Director of Advertising new contacts and sponsors. ******** Varney .......................Services Manager • Each year Jim Garmo, Nick Kizi, Harley Davis ..........................Coupon Manager Brian Yaldoo, and Alaa Naimi J-ne* V. Bellanca Jr donate their time and talents to raise ^ Been* t DtLisle ..................Legal Counsel money to provide turkeys to needy Associates — Legislative Consultant S^aoto&Ramsby ......................Health Care families across Metro Detroit. I’m ^ G regory pleased to say that through their ‘ Co. hard work, the AFD Turkey Drive RC. Certified Public Accountant '• " ‘P Associates ....................Publishing ..............................Printing Chairman's Message, continued Crim Communications, Inc . Public Relations on page 23. June 2004 | 3 Court Dismissal Proves Calendar June 6-8 Dairy-Deli-Bake Seminar & Expo that Police Raid had no Merit Washington Convention