Associated Food Dealers P R SR T STD 18470 W 10 Mile Rd. U. S. P ostage Southfield, Ml 48075 PAID FOOD & BEVERAGE DETROIT Ml P E R M IT#36 Address Service Requested REPORT VOL 12. NO 4 The official publication of the Associated Food Dealers of Michigan April 2001 Working hard for our members. Kobrand Teams with AFD Life is a game...play to win! Do tax credit enticements do more harm than good? to aid scholarship program Come to AFD’s “Wheel of • See page 3 Kobrand Corporation has The AFD Foundation, Inc. Rep. Valde Garcia moves once again partnered with awards scholarships to Fortune” Trade Show to Senate Associated Food Dealers of students throughout Michigan April 30, 5:00 p.m to 9:00 p.m. • See page 4 Michigan to benefit the AFD who are capable of attending and May 1, 2:00 p.m. to 8:00 p.m. Foundation, Inc. Scholarship college but may not be Party Time at the at Burton Manor in Livonia Program. eligible for other scholarships. cool hand at the AFD For every case of Alize This program makes college a trade show Who wants to be a Millionaire? Make sure the product (Cognac VS, reality for a student who • See page 10 Price is Right by avoiding Jeopardy and the Cognac VSOP, Cold and might not otherwise be able to Important facts about Red Passion) sold in afford tuition. pitfalls facing retailers today. Learn to be a mad cow disease Michigan between May 1, Alizé was the first product Survivor in the Outback o f the food industry! • See page 15 2001 and July 31, 2001, to incorporate the blend of For Tickets, call AFD (248) 557-9600 Bee Bee's Market is Kobrand will make a passion fruit juice and cognac. eastside success story donation to the AFD Kobrand Corporation has • See page 18 Foundation Scholarship imported it from France since Fund. 1986. In 1998. Kobrand To help retailers, Aliz£ has introduced Alize Red Passion Legislative Update created several items to and in 2000, they debuted encourage sales and displays Alizé V.S. and V.S.O.P. including posters, casecards, Cognacs. House follows table tents and shelf talkers For more information, Senate in rejecting for both on- and off- premise contact General Wine and locations. Liquor at (313) 867-0521. OSHA rules It took the Occupational EBT comes to Safety and Health AFD Administration (OSHA) 10 Southeast years to formulate but took Launches the US Congress only two Michigan days to completely dismantle. New The House voted along party Over the next two months Michael Skupin Southeastern Michigan lines, as did the Senate, to W e b s ite repeal newly instituted retailers who formerly took Get the “Survivor” scoop from workplace regulations aimed paper food stamps will be at reducing repetitive-motion converted to using the new Michael Skopin! injuries. “Bridge Card”. The Bridge AFD is proud to announce AFD is proud to announce an exciting and entertaining The 223-206 vote is a Card is much like a debit or the launch of our new Website, addition to our 17 Annual Trade Show . On May 1, at boon to American businesses, credit card using your Third afdom.org. Browse the site to 12:00 noon, just before the trade show opens for the second which would have had to foot Party Processors credit/debit find out the latest in AFD day, we will host a special luncheon with Michael Skupin an estimated $4.5 billion bill machines or state supplied benefits and services and as the speaker! to institute all of the changes equipment. upcoming AFD events. Visitors Fans of the popular CBS TV reality series, “Survivor” described and intimated in If you will be processing can easily navigate the site to will recall that Michael Skupin is the Michigan contender the OSHA rules. President through a Third Party get up-to-the-minute industry that had to leave the Australian Outback due to bums on his Bush has already indicated he Processor, the only action news. This is just the latest hands and face. At the luncheon you will learn what really will sign the bill. required is completion of the effort by AFD to make sure went on behind the camera. An excellent speaker, Michael The new regulations Retail Site Survey sent to you members and prospective will explain how he came to be a Survivor contestant, what enjoyed firm support from by Citicorp Service members have the tools they the experience has meant to him, how the show has changed labor and Democrats, who (Michigan’s contractor). need to stay competitive. his life and what is in store for the future. suggested the ergonomic Make sure to contact your The AFD Survivor Lunch with Michael Skupin will changes would increase processor to inform them that As we go to press. be held at Burton Manor in Livonia, in a special room productivity by $9 billion you want to accept the Bridge Bottle deposit expansion right next to our trade show. Tickets are $25 and are annually. Nearly all business Card. Those retailers using legislation is Being expected to sell fast. To get yours, call AFD at (248) 557- advocates, however, insisted their existing equipment will introduced. Watch 9600. For more show information, turn to page 36. Mark the rules were often arbitrary, be charged transaction fees future issues for May 1 on your calendar now.. .come for the AFD Survivor very cost prohibitive, and more information. luncheon and then tour the show! ineffective. See EBT, page 16 Visit our Web site at: ww w.afdom.org FOR THE COOLEST; MOST REFRESHING'BEVERAGES IN THE BUSINESS, YOU'RESETTING WARMERW l o o k to you r LOCAL PEPSI BOTTLING GROUP. Lachine (A lpena) (517) 379-3264 Saginaw (517) 755 West Branch (517) President's Message Sam Dallo, Chairman In 'N' Out Foods. Region 4 Tarry Farida, Vice Chair, Future Planning Value Center Markets Fred Dally, Vice Chair, Legislation Medicine Chest Do tax credit enticements do more Gary Davis, Vice Chair, Membership Tom Davis & Sons Dairy Co. Ronnie Jamil, Treasurer Mug & Jug Liquor Stores Chris Zebari, Secretary harm than good? New Hudson Food Market EMERITUS DIRECTORS companies that apply for tax credits dumped almost 2 million shares of Bill Viviano will succeed and hand out special their own stock between Feb 1 and House of Prime favors to certain businesses and not to Oct. 30, 2000. The company Mark Karmo Golden Valley Food Center others. withdrew its promise to build a Nabby Yono As of November 2000, MEGA had distribution center in Michigan Orchard Food Center Frank Arcori approved 100 deals worth more than forfeiting the MEGA tax credits. V.O.S. Buying Group $1.4 billion to companies that expand MEGA was unable to predict Amir Al-Nalml or relocate in Michigan. In many Webvan’s difficulties yet they issue Joy-Thrifty Scot cases, MEGA officials can't prove reports with forecasts of how many RETAIL DIRECTORS that the companies would not have jobs will be created by tax credits, Phyllis DeSmet Spartan Stores. Inc. Region 3 expanded or relocated here without even 20 years into the future. Jim Garmo the incentives, and it appears that More importantly, MEGA did not Shopper’s Valley Market, Region 2 often the favors simply benefit one take into consideration the economic James Hooks firm at the expense of other firms. hardship that Webvan could have Metro Foodland by Joe Sarafa Raad Kathawa A good example of a poor choice caused for existing Michigan retailers. AFD President Ryan's Foods, Region 1 to receive special consideration is In a fixed marketplace, such as the Alaa Nalmi Slate bureaucracies try to forecast Webvan Group, Inc. of Foster City, retail grocery business, adding Thrifty Scot Supermarket which businesses will succeed in the Vic Ventimiglia, Jr. California. Webvan, an on-line another player doesn't bring Vic's World Class Market marketplace and create new jobs. But grocery retailer, was offered $23.4 additional revenue to our state; it Thomas Welch they can’t possibly predict how Hollywood Super Markets million in tax credits by MEGA on simply redistributes it among more millions of individual consumer Brian Yaldoo Dec. 21, 1999 in exchange for the players. Woodward Long Lake Shell decisions will ultimately determine the company’s promise to build one of its We’re not sure that this is an Jerry Yono fate of a firm. Imperial Sunoco 26 warehouse distribution centers in appropriate role for government to The Michigan Economic Growth SUPPLIER DIRECTORS Michigan. The company's stock take. What do you think? Authority (MEGA), is an agency Brian Belobradic finished that week at $18.38 per created by the Engler administration in Anheuser-Busch, Inc. share. Frank Bodi 1995 to “encourage economic Webvan's stock began a steady Seagram Americas development." Part of the Michigan Al Chlttaro descent almost immediately following Economic Development Corporation, Faygo Corp. the MEGA agreement, reaching a low Earl Ishbia MEGA singles out firms to shower of $0.47 per share on Dec. 15, 2000. Sherwood Food Distributors with special tax credits, job training Clark Walker According to Security and Exchange subsidies and other incentives. Coca-Cola, Region 6 Commission filings. Webvan officials Mike Rosch MEGA officials try to predict which General Wine & Liquor Co. Tom Waller CROSSMARK Food Trade, Region 5 The Grocery Zone Tom Simaan By David Coverly Lafayette Park Market Alan Stotsky F&M Drugs Sam Yono Ramada Southfield AFD STAFF & CONSULTANTS Joseph D. Sarafa President and Publisher Spin AFD’s Daniel Reeves Vice President Judy Shaba Wheel of AFD Service Group Elizabeth Arbus Services Manager Fortune Harley Davis We look forward to seeing you at Coupons Danielle MacDonald the AFD Trade Show on April 30th Special Events Consultant and May 1st, this year themed “Wheel Ginny Bennett of Fortune." Please check out the Special Events Manager Ray Amyot information beginning on page 36 Advertising regarding the show.