Donald to Exit As Albertsons

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Donald to Exit As Albertsons ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ INSIDE TAKING THIS ISSUE STOCK by Jeff Metzger Food Six Months Later, Retailers Upset By UNFI’s Poor Execution, Communication “It gets late early here” - Yogi Berra Local Notables Trek To Six months is usually not a long time when measuring a business cycle, but in Boston For Seafood Expo the case of United Natural Foods, Inc. (UNFI), that span seems like an eternity, es- North America pecially to many of the wholesaler’s independent retailers and its own associates 8 who have witnessed what one independent retail customer called a “meltdown” in the period following UNFI’s acquisition of Supervalu for $2.9 billion last October. Some of challenges are obvious: poor earnings results; a share price that has plummeted from $45.14 per share on July 24 (the day before the Supervalu acquisition was announced) to its current trading price of $13.32 per share; its $4 billion debt load (most of which it inherited from SVU); and a major executional A PUBLICATION OF BEST-MET PUBLISHING, INC. breakdown at its new Harrisburg, PA DC when it opened in October that created Mid-Atlantic NEW low service levels throughout the holiday season adversely impacting many retail- Hosts ‘Regional Connect’ In Olney, MD Vol.World 75 No. 4 SPECIALTY FOODS ISSUE April 2019 See TAKING STOCK on page 6 29 Former Starbucks Chief Executive To Remain As Co-Chairman Donald To Exit As Albertsons CEO; PepsiCo’s Sankaran To Lead Chain Albertsons Companies has an- (his first stint at the company was Albertsons acquiring it) as well nounced that Vivek Sankaran, from 1976-1991) in March 2018 to as helping to develop and expand CEO PepsiCo Foods North Amer- serve as president and COO of the the SuperCenter concept while at ica, has been appointed president company ahead of the anticipated Walmart (1991-1994). and chief executive officer of the merger with Rite Aid. When that “When I joined Albertsons Boise, ID-based retailer, effective deal collapsed, the board named Companies in 2018, I found a THE 37TH ANNUAL USO-METRO AWARDS DINNER, A PATRIOTIC April 25, 2019. the veteran retail executive as company that had a strong de- black-tie affair held last month at the Omni Shoreham in Washington, Jim Donald, currently the com- CEO in September. Prior to that, centralized operating model, a DC, celebrated the service and sacrifice of the U.S. Armed Forces and their families. Giant Food, a silver sponsor of the event, is represented pany’s president and CEO, will Donald served as chief execu- fantastic leadership team and in- at the event by (l-r) Ira and Heather Kress and Susan and Erik Weenink. continue as co-chairman of the tive of Extended Stay America, a credible potential to be the four- More photos are on page 24. board, with Leonard Laufer serv- large U.S.-based hotel chain, from walls and no-walls leader in the ing as the other co-chairman. The 2012 to 2015. From 2009 to 2011, grocery industry,” said Donald. Chain Continues Pledge To Divest Non-Core Assets company’s longtime leader Rob- Donald was president and CEO “Over the past year, our team ert Miller has been named chair- of food and pharmacy retailer made our company’s nearly 2,300 Kroger Sells Turkey Hill Dairy To man emeritus and will continue Haggen, Inc. From 2002-2008 he stores even stronger as we sharp- to serve as a member of the board was with Starbucks, leading the ened our focus on the intersection Equity Firm Peak Rock Capital of directors. company through a period of of technology and service. I’m Donald, 65, rejoined Albertsons growth, working his way up from looking forward to the continued Kroger continued its plan to tin, TX. president of its North America progress of the company under prioritize its core supermarket Twelve months earlier, the division to president and CEO of the seasoned leadership of Vivek. business and its new technolo- Cincinnati, OH-based merchant the large Seattle, WA-based coffee We continue to be well-posi- gy initiatives when it announced – the largest U.S. pure-play super- chain. Donald also served as CEO tioned to serve the evolving needs late last month that it had sold market retailer with annual sales of Pathmark Stores (1997-2002) its Turkey Hill Dairy business to of $121 billion - unloaded its 784 and president of Safeway’s East- See ALBERTSONS Peak Rock Capital, a mid-market See TURKEY HILL ern division (1994-1996, prior to on page 28 private equity firm based in Aus- on page 23 ssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssssss OBITUARY Andrew “Andy” Klein, presi- Center in Havre de Grace. hearts grieve with both families.” County and one in Baltimore City. dent and CEO of Klein’s ShopRite, Wakefern Food Corp., the The Kleins’ family business had Klein was known for his philan- was killed in a multi-vehicle car cooperative food distributor of its beginnings in a small general thropy. He served as national trea- accident in Harford County, MD which ShopRite is a member, is- store in Fallston established in surer of the Jewish National Fund, on March 11. He was 65 years old. sued a statement saying: “We are 1925 by Ralph Klein’s parents, was a strong supporter of Temple Klein was the eldest of three shocked and saddened to learn Maurice and Sara Klein. Ralph Adas Shalom-Harford Jewish sons of Klein’s Family Markets about the tragic accident that Klein and his brother, Michael, Center in Havre de Grace and a owners Ralph and Shirley Klein of took place in Maryland today ran the store with their parents generous donor to the University Forest Hill. He grew up in Bel Air, and claimed two precious lives, until they retired. In 2009, Klein’s of Maryland Upper Chesapeake where he attended Harford Day including an 8-year-old boy and Family Markets became part of Medical Center in Bel Air. He also School and was a member and our own beloved ShopRite family ShopRite. The Klein family now started the Holocaust education religious school student at Tem- member Andrew Klein, president owns nine ShopRite stores — sev- and commemoration program at ple Adas Shalom-Harford Jewish of Klein’s Family Markets. Our en in Harford, one in Baltimore the John Carroll School in Bel Air. Klein is survived by his wife, Jayne Klein (nee Zion); his son, Marshall (Rachel) Klein, his daughters, Sarah Klein, and Ra- chel Klein; his brother, Michael (Clara) Klein and Howard (Su- san) Klein; granddaughter, Sasha Ruth Klein; and many nieces and nephews. He was predeceased by his parents. Donations in Klein’s memory can be made to the Jewish Na- tional Fund, 78 Randall Avenue, Rockville Centre, NY 11570 or the University of Maryland Up- per Chesapeake Health Founda- tion Inc., 520 Upper Chesapeake Drive, Suite 405 Bel Air, MD 21014-4324. Who knows? Is your next event listed in the Mid-Atlantic food market’s number one calendar of events? Let us know, we’ll let our readers know. We’ll publish your spe- cial event listing in the Trade Cal- endar of Events. Contact Terri Maloney, Editor 410-730-5013 or [email protected] 2 | FOOD WORLD April 2019 www.best-met.com ✹ Cinco de Mayo is the 4th biggest selling holiday of the year for Tortillas and Salsa!* ✹ TORTIYAHS! are growing: +92% vs. YAGO!* ✹ In market FSI on ‘YAHS April 28th! ✹ New hutch available for incremental sales support! K FO LOO R C ! OM AY * Total US – 52 wk IRI 3/24/19 ING IN M Utz® Quality Foods, LLC Follow us online! 900 High Street, Hanover, PA 17331 1-800-FOR-SNAX www.utzsnacks.com @UtzSnacks @UtzSnacks www.best-met.com April 2019 FOOD WORLD | 3 $444, clothing and shoes are the to add items to their cart one at a dors and partners, along with a business community for a com- most common drunk purchases time over a few days — not com- $25 gift card for perishables pro- mon goal,” noted Elda Devarie, and not surprisingly, Amazon is plete their shopping for the week vided by local sponsors. From founder and president of EMD the drunk shopping platform of all at once,” stated Tom Ward, the food industry, the sponsors Sales. “Competitors in all areas choice. Women were found to senior vice president of digital consisted of: Giant Food, Safe- of business and media come to- be only slightly more likely than operations for Walmart. “Best of way Eastern and the Safeway gether to give love.” men to drunk shop, but men all, customers can be extra con- Foundation, Shoppers Food & Finally, I would be remiss on average spend more money fident that we can quickly and Pharmacy, Americana Grocery, if I did not highlight an in- when they do buy while inebri- accurately identify the items Mega Supermarkets, and The stitution that is celebrating a ated. Drunk shoppers tend to be they are asking for with the help Market at Highlandtown. Other hard earned and well-deserved younger with Millennials run- of information from their prior sponsors included: BB&T Bank, milestone. The Maryland Food ning up a tab while under the purchases with us.” Ward con- BGE, Organizacion de Latinos Bank (MFB), the East Coast’s influence 13 percent more often tinued, “The more you use it, the at Exelon (“OLE”), McDon- first food bank, is celebrating a than Baby Boomers. The older better we’ll get.” Voice-activated ald’s, Metro PCS, Boost Mobile, its 40th anniversary this year! drunk shoppers, however, out- shopping for grocery pickup will Boss Revolution, Tigo, Tele Cel, What started in 1979 with the AISLE spend their younger counter- be offered at more than 2,100 Maryland Auto Insurance, State distribution of donuts from a chatter parts by an average of $150 per Walmart stores and for online Farm Insurance, Amerigroup, garage in Baltimore City has year.
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