The Whole Foods Effect Comeback Buck Ennis
Total Page：16
File Type：pdf, Size：1020Kb
REPORT SMALL BUSINESS IN THE SHADOWS Immigrant biz owners look beyond GOP Congress CRAIN’S® NEW YORK BUSINESS P. 13 VOL. XXX, NO. 45 WWW.CRAINSNEWYORK.COM NOVEMBER 10-16, 2014 PRICE: $3.00 LOCAL FINDS: Mayor’s Whole Foods’ “regional foragers” identify potential hot items, with an money eye for organic produce and novel goods. Pictured here: foods made in circles New York. back Upstate campaign dollars collected by de Blasio went to his favorite consultants BY CHRIS BRAGG A massive fundraising effort last month by Mayor Bill de Blasio to win Democratic control of the state Senate was seen as a political setback because Republicans won a majority of seats. But a Crain’s analysis of the money trail shows the spending spree wasn’t a complete loss for the mayor’s allies: Much of the cash was circulated back to two of Mr. de Blasio’s closest polit- ical consultants, BerlinRosen and AKPD Media and Messaging. “It’s an example of how obscene our current laws are,” said Dick Dadey,ex- ecutive director of good-government group Citizens Union. “The mayor’s See MAYOR on Page 24 Rocky start for Coach’s The Whole Foods effect comeback buck ennis late in Madagascar since 2008 to help the island’s Move to pricier The hardest market BY LISA FICKENSCHER impoverished citizens. Mr. McCollum’s persistence paid off. In merchandise hurts for NY food makers Tim McCollum was determined to get his 2010, the former Peace Corps volunteer cold- both sales and shares chocolate bars into Whole Foods Markets, but called the president—a fellow Peace Corps to crack may be the he didn’t count on spending two frustrating years alumnus—of the grocer’s Whole Planet Foun- of sending emails and making hundreds of calls dation. He agreed to help open some doors. BY ADRIANNE PASQUARELLI high-end grocer. But and visits to individual stores in an effort that Madécasse’s sales were just $250,000 in 2010 seemed to be going nowhere. when it landed in Whole Foods’ Northeast out- Change is hard. Just ask Coach Inc. In once a product’s in, Whole Foods “is hard to crack,”said Mr.Mc- posts. Now the company’s chocolates, which sell the middle of an ambitious turnaround Collum, who founded Madécasse, a Brooklyn- for $4.99 a bar, can be found in nearly all of the strategy designed to transform the 73- it flies off shelves based company that has been producing choco- See WHOLE FOODS on Page 22 year-old handbag purveyor into an up- scale lifestyle brand for both men and women, sales are falling—and in- 45 5 END OF AN ERA vestors are fleeing. “They’re in deep trouble,” said C.E. APPLEBY owned Robin Lewis, chief executive of the much of Manhattan. His Robin Report, a retail strategy online newsletter. “The brand has become heirs just cashed out. P. 3 ubiquitous over the last 10 years with NEWSPAPER See COACH on Page 24 71486 01068 0 EDITOR’S NOTE Haul of Fame FYICRAINSNEWYORK.COM I’m spending my lunch hour Monday with 450 people celebrating the induction of 10 In DC, a Republican Senate extraordinary New Yorkers into the is opportunity for Schumer Crain’s New York Business Hall of Fame.The inaugural inductees— onventional wisdom is that Democrats perhaps you’ve heard of them: in the U.S. Senate, including New York’s Michael Bloomberg, Kenneth Charles Schumer (pictured) and Kirsten Glenn Coleman CGillibrand Chenault, Karen Brooks Hopkins, , will see their power diminished come Henry Kravis,Terry Lundgren, January, when Republicans assume the majority Danny Meyer, Richard Parsons, Stephen Ross, that voters delivered to them last week. ¶ But Jonathan Tisch and Diane von Furstenberg—have some observers believe that Mr. Schumer, the transformed the city through their professional third-ranking Senate Democrat, could thrive in newscom endeavors and philanthropic works. Each has the new environment, even as minority-party status reduces his formal power. ¶ “Schumer is now demonstrated business achievement in challenging the most powerful Democrat in the Senate,” opined Wayne Berman, senior adviser for global circumstances during his or her career, has contributed government affairs at the Blackstone Group and a veteran of Republican presidential campaigns. to civic and charitable activities in ways beyond giving While Nevada’s Harry Reid has the support of Mr. Schumer and most Senate Democrats to money, and has changed New York for the better. And remain their leader if he wants to, his influence will wane in the minority. Meanwhile, the newly each sat down with Crain’s for a remarkable collection elected GOP senators are expected to move their side toward the center, where Mr. Schumer has of video interviews that capture their thoughts on spent years cultivating allies. “The crazies didn’t win,” said Jefrey Pollock, president of Global leadership and their own careers. Spend a lunch hour Strategy Group. ¶ Republicans want to shed their “Party of No” moniker and show they can someday soon clicking through our Hall of Fame govern in the two years leading into the 2016 election, when they will try to recapture the series at CrainsNewYork.com/video. Hear from Mr. presidency and defend their Senate majority. Mr. Schumer’s ability to build coalitions to pass bills Bloomberg on the day he got fired from his Wall could make him an integral player. ¶ “He knows how to make deals,” Mr. Berman said. “He’s an Street job; Mr. Chenault on the fate of leaders who fail alchemist. And there are damn few alchemists in the Congress.” —erik engquist to lead; Ms. Hopkins on culture’s role in Brooklyn’s 1 WTC OPENS. Executives at magazine NYPD’s highest-ranking African- economic rebirth; Mr. Kravis on his earliest publisher Condé Nast began moving American,resigned days after accept- HOORAY! entrepreneurial days as a newspaper boy; Mr. downtown into 1 World Trade Cen- ing that post.Mr.Tucker,formerly the THE CONDITION of Lundgren on Macy’s makeover in an online era; Mr. ter, marking the official opening of NYPD’s head of training, is also Dr. Craig Spencer, the 1,776-foot-tall tower. … OBAMA African-American.… CAN’T BEAT THE the city’s first Meyer on being “a leader worth following”; Mr. NOMINEE. SYSTEM. Ebola patient, has Brooklyn federal prosecu- Marvin Jemal,co-founder of improved. He is Parsons on what mentor Nelson Rockefeller taught tor Loretta Lynch will be nominated the once-storied retailer Nobody playing the banjo him about stewardship; Mr. Ross on why he hires by President Barack Obama as attor- Beats the Wiz,was sentenced to three and riding an exercise bike at “young ‘PHDs’—poor, hungry and driven”; Mr.Tisch ney general, succeeding Eric Holder. years in prison for stealing $2 million Bellevue Hospital, She would be the first African-Amer- from a bank that lent him money to where he is being on promoting the city after 9/11; and Ms. von ican woman in this post. Ms. Lynch build a luggage business. … ART treated. Furstenberg on being an immigrant who achieved the was named one of Crain’s Most Pow- AUCTION RECORDS. At Sotheby’s fall American Dream.“I was lucky,” she added. So, too, is erful Women in New York in 2013.… opener last week, the auction house Crain’s, which now offers a rich repository of wisdom THWARTING BAD BEHAVIOR. Benjamin sold 58 Impressionist and modern art OY VEY! Lawsky, the state superintendent of works for $422.1 million, the compa- THE EMERGENCY SYSTEM used for 911 from 10 people who are living proof of why New York financial services, wants independent ny’s highest total ever. … GOOGLE calls was down for two hours last week, City remains the world’s capital of business. monitors to routinely examine the big GROWS. The search giant signed a forcing dispatchers to use pen and paper companies his office lease for 180,000 to keep track of calls. regulates. Tradi- ‘The square feet at a former THIS WEEK IN CRAIN’S tionally, the moni- Nabisco cookie factory tors were reserved traditional near the High Line. … for firms in legal BLOOMBERG SHOPPING IN THE BOROUGHS-------------------------- 3 trouble. … BANK [TV] bundle is SPREE. Former Mayor IN THE MARKETS----------------------------------4 MERGER. Sterling fraying at the Michael Bloomberg is DIGITAL NY------------------------------------------------------5 Bancorp and Hud- expected to return istockphoto son Valley Holding edge’ many of the 400 .nyc THE INSIDER -----------------------------------------------6 Corp. will merge, —Chase Carey, 21st domain names that his court decisions declaring that the REAL ESTATE -----------------------------------------------7 creating a New York Century Fox’s chief attorneys purchased for Internet TV-streaming service is il- regional bank with operating officer, during $12,000. URLs that legal, Aereo has shuttered its OPINION --------------------------------------------------------10 about $10.5 billion the company’s quarterly were purchased include Boston operations and is laying off GREG DAVID--------------------------------------------11 in assets.The deal is earnings call with investors MikeBloombergIsA employees in New York. … YMCA valued at $539 mil- Dweeb.nyc and Mike CHIEF EXEC TO RETIRE. Jack Lund, the REPORT----------------------------------------------------------- GOTHAM GIGS 13 lion.… BRATTON’S NO. 2. Police Com- IsTooShort.nyc. … GROCER DOWN- CEO and president of the YMCA of Maria Hinojosa’s nonprofit CLASSIFIEDS -----------------------------------------20 missioner Bill Bratton promoted 40- SIZES. Food Emporium is closing two Greater New York for the past decade, produces radio programs year NYPD veteran Benjamin of its 13 New York City supermarkets will retire next year.Mr.Lund,64,has NEW YORK, NEW YORK ---------- about the U.S.’s changing 25 Tucker, 63, to first deputy commis- within the next few months. Others spent the past 40 years working for demographics.