▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ INSIDE TAKING THIS ISSUE STOCK by Jeff Metzger 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 , 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 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 Chief Executive To Remain As Co-Chairman Donald To Exit As 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 (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. , 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 Sells Turkey Hill Dairy To man emeritus and will continue , 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 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 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 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

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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, 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 , 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. The key finding, accord- delivery at more than 800 stores. and Crisp and Juicy. Addition- evolved into an organization By Karen Fernandez ing to The Hustle, is that drunk And so the fierce grocery AI ally, more than 120 volunteers that oversees a statewide net- shopping is an estimated $45 race continues… were on hand during packing work of food assistance that With the grocery industry billion per year industry. While April is National Volunteer day to fill the boxes with the do- brings enough resources and being such an overstored and this study’s sample size and de- Month, and therefore I think it nated groceries before distribu- partners together to distribute competitive landscape, retailers mographic may be too limited is only fitting that I call atten- tion. “The best part about ‘Bags are always looking for ways to to truly make such a definitive tion to a local industry project of Love’ is its ability to unite the See AISLE CHATTER differentiate themselves from conclusion, the results are none- in which volunteers form the on page 24 their rivals. As the search for theless interesting and could backbone of the program. Every the unicorn demographic seems have merchants thinking out- year, “Bags of Love” has been to be an endless process, maybe side of the box on how to cap- donating boxes of groceries to one such shopper that super- ture these shoppers. To check communities in Maryland, Vir- markets with an online pres- out the complete results of the ginia and DC. The annual event ence can hone in on is the one survey, go to www.thehustle.co/ is an initiative of the interna- that is three sheets to the wind? drunk-shopping-survey. tional foods distributor EMD Late last month The Hustle, a Walmart has announced it is Sales that was started in 2009. non-traditional media website launching a new voice-activat- Last month, 800 boxes were that features topical stories and ed grocery shopping capability packed with assorted food items news somewhat on the fringe, that is unimaginatively called which were then donated to less conducted a survey of 2,174 of “Voice Order.” It will allow cus- fortunate families in the area. its alcohol-consuming readers. tomers to add items to their vir- These recipients were selected Of those that participated in tual grocery cart by speaking to by charitable, religious and gov- it, the average respondent was their Google Assistant, available ernmental organizations. The found to be 36 years old with an across several devices includ- distribution of the care packag- income of $92,000 (more than ing Android phones, iPhones, es, with the purpose of bringing twice that of the national aver- Google Home Hub and smart the families to a location close to PROCTOR & GAMBLE SPONSORED AUTOGRAPH SIGNING OUTINGS age) with 53 percent being male watches. The voice app is meant their neighborhoods to enjoy the with Washington Capitals right winger Tom Wilson at two D.C. area and 47 percent being female. The to be used to round-up items support of the business commu- Giant Food stores last month. Together, the two sessions - at the com- quick takeaways are as follows: for a later purchase by adding nity, took place in 34 locations pany’s Wisconsin Avenue and O Street stores - drew more than 800 79 percent of alcohol consumers them to a cart, instead of forc- in the DMV area. Each family Caps fans hoping for an autograph. This photo, taken at the O Street store, features (l-r) Lee Stacey, Monumental Sports; Daniel Wolk, Je- have made at least one drunk ing a checkout upon each new received a box with almost 60 purchase, the average annual rome DeBrew, Tanya Viola and Naviona Wise, Giant Food; Wilson; and addition. “We know when using pounds of groceries generously Donnie Walker, Giant Food.

spend per drunk shopper was voice technology, customers like donated by some of EMD’s ven- ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ Jeffrey W. Metzger Karen Fernandez Food World (USPS 203920) is pub­ President/Publisher Director of lished monthly for $69 a year by PUBLISHED THE FIRST Terri Maloney Marketing/Digital Strategist Best-Met Publishing Co. Inc., 5537 MONDAY OF EACH MONTH VP/Editorial Director Beth Pripstein Twin Knolls Rd., Suite 438, Colum­bia, Food Maria Maggio Circulation Manager Md. 21045. Periodicals Postage­ paid By Best-Met Publishing Co., Inc. VP/GM-Food Trade News Richard J. Bestany at Columbia, Maryland and additional Publishers of Chairman Emeritus Food World Kevin Gallagher mailing offices. POSTMASTER:­ Send Vice President address changes to Best-Met Pub- and Food Trade News lishing Co. Inc., 5537 Twin Knolls Rd., WorldWWW.BEST-MET.COM Suite 438, Colum­bia, Md. 21045.

4 | FOOD WORLD April 2019 www.best-met.com Baltimore | Denver Portland | Los Angeles

www.best-met.com April 2019 FOOD WORLD | 5 ssssssssssssssssssssssssssssss TAKING STOCK From page 1 er’s sales during their most important operating period. And when measuring the intangible parts of its newly blended business, the situation is equally as bad, perhaps worse. We talked to about a half dozen inde- pendent retailers who are UNFI Eastern region customers and who are serviced from two UNFI warehouses in (problematic) Harrisburg and in Mechanicsville, VA. All were highly critical of the way UNFI has handled the transition. All were also skeptical as to whether UNFI can successfully convert from a NOSE (Natural/ Organic/Specialty/Ethnic) distributor to a full-service wholesaler. “We saw problems with the way they integrated Haddon House,” said one re- tailer who wasn’t surprised that the Providence, RI-based distributor was having difficulty transitioning into a full-service wholesaler. “Within six months, UNFI pretty much abandoned the customer service mantra that had been Haddon House’s calling card and customers started leaving. Now that they’re playing in the big leagues, it’s actually worse. Communications are almost non-existent, and we’re forced to deal with former Supervalu employees who don’t even know if they’ll have a job by the end of the year. The deal was announced in July and we’ve still yet to meet with any of UNFI’s senior management.” Another multiple store owner stated: “We’re hugely frustrated by the lack of communications from UNFI. To think that it’s been nearly nine months since the deal was first announced and almost six months since it was consummated and no one from UNFI legacy leadership has bothered to put together a town hall meet- ing with all customers. Even if those initial meetings were just with UNFI’s larger customers, it’s vital to understand where the company is going and how they will address important issues such as cost of goods. At this point, what we’ve experi- enced is increased fees which have cost us tens of thousands of dollars. I’m also concerned from what I’ve read - which is all I can go by at this point - which is that UNFI wants to offer more ‘better for you’ products. That’s fine, but what about its many independent customers who operate inner city stores or supermarkets in economically challenged areas? The fact is that those customers still drink soda, eat sugared cereals and other processed foods - they need to pay attention to those items as well. One of our long-standing criticisms of Supervalu was that they hadn’t been very good at serving the perimeter of the store. Several of their current customers don’t buy an industry proportional amount of or produce

TAKING STOCK continues on page 17

6 | FOOD WORLD April 2019 www.best-met.com www.best-met.com April 2019 FOOD WORLD | 7 Trade Treks To Beantown For Seafood Expo North America March 17-19 At Boston Convention Center

The annual Seafood Expo North America was held last month at the Boston Convention Center. Phillips Foods is The NAFCO team was out in full force at the Seafood Expo Donna Snyder (2nd from r) of Seafood America poses for well represented at the show by John Baxter (l) and Steve (l-r) Billy Guthier, Neil Lauryssens, Stanley Pearlman, Jeff a photo with Redner’s Markets’ (l-r) Chris Morgan, Leslie Phillips. Pearlman, Ian Page and Mark Emmons. Morgan, Tim Merkel and Laurie Merkel.

Among those making the trip to Beantown for the show are (l-r) Matt Burke, Seafood America; Carol Boyle, Kroger; Jim This Seafood America duo features Tom Dengler (l) and Burke Sr., Seafood America; Shelley Zang, Kroger; and Jim Connor Kienzle, who represents the third generation of his All smiles for our photographer are Dave Daltry (l), Tim Sul- Burke Jr., Seafood America. family to work at the company. livan (c) and Steve Grosser, all with Kelchner’s.

Handling business at the show for Burris Retail Logistics ’ Charlie Bell (2nd from l) is joined here by (l- Anthony D’Angelo (l) and Donna D’Angelo of Samuels & Son are (l-r) Andy Stone, Samantha Torre, Mike Mayhart and r) Raul Squadritto of AquaChile, Dan McKeone of Innovative Seafood check out the latest seafood innovations at this Mike Pitcher. Food Sales and Alvaro Toro of AquaChile. year’s expo.

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www.best-met.com April 2019 FOOD WORLD | 9 Sales Of Specialty Foods Continue To Grow, Reaching $140B In 2017, Outpacing Overall Food Sales Growth By Karen Fernandez CBD-EVERYTHING Specialty Foods Editor If you haven’t been living under a rock, then there’s no need to tell you that cannabidiol Specialty foods continues to be one of the (CBD) is one of, if not the biggest, trend this fastest growing segments in the industry, with year in the retail sector. With the legalization total sales of $140.3 billion in 2017 and no of hemp as an agricultural commodity and its signs of slowing down. According to the Spe- declassification as a controlled substance in the cialty Food Association’s annual “State of the 2018 Farm Bill, it seems to be all systems go for Specialty Food Industry 2018” report released the CBD producers who had been in a hold- last June, specialty food sales outpaced the ing pattern waiting for this legislation to pass. growth of all food at retail – up 12.9 percent While the signing of the bill just took place this vs. 1.4 percent. Between 2015 and 2017, sales past December, growers have been preparing in in brick-and-mortar retailers grew by 10.7 per- anticipation of it. According to the 2018 U.S. cent, was up by 12.8 percent in foodservice Hemp Crop Report from Washington-based channels, and increased by 20.9 percent in on- Vote Hemp, the nation’s leading grassroots line sales. The breakdown of consumers based hemp advocacy organization, the number of on generation show that iGens (ages 18-23) are hemp acres in the United States more than tri- particularly engaged in shopping for specialty pled to 78,176 acres in 2018 from 25,713 acres foods, with 79 percent buying in the segment. in 2017. “We’ve seen hemp cultivation signifi- A large portion of the other generations were cantly expand in the U.S. in 2018, with over tri- revealed to be specialty food shoppers as well: ple the number of acres planted in hemp com- 67 percent of Millennials (ages 24-41), 65 per- pared to last year and the addition of four more cent of Gen Xers (ages 42-53) and 60 percent states with hemp programs,” said Eric Steens- of Baby Boomers (ages 54-72). The takeaway is tra, president of Vote Hemp. “Now that we have that this segment is only poised to get bigger lifted federal prohibition on hemp farming, it’s as shoppers’ tastes become diversified through time to invest our energy in expanding hemp increased exposure to variety and availability. cultivation and for hemp products We’ve highlighted three trends that we expect across the country so that all can reap the ben- to be at the forefront in the specialty foods are- efits of this versatile, historic American crop.” na for the next couple of years, if not more: See SPECIALTY FOODS on page 14 Local is Better. Want local representation with a national reach? You need the professionals at Star/Pro-Star.

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www.best-met.com April 2019 FOOD WORLD | 11 Bozzuto’s Welcomes Retailers, Vendor Partners To Foxwoods Resort

Bozzuto’s held its 2019 Independent Retailer Conference earlier this month at Foxwoods Resort in Ledyard, CT. Bozzu- These Bozzuto’s executives all set for the awards night are This foursome features (l-r) Rich Hayes, Bozzuto’s; Joe to’s Michael Bozzuto (c) welcomes Spencer An (l) of Bogopa (l-r) Mike Hutchison, Dan Brock, Bill Ainge, Steve Capanna, Mazaika and Norma Mazaika, Mountain Fresh Market; and and Joseph Romeo of Romeo’s IGA of Australia. Michael Bozzuto, Steve Heggelke and George Motel. Steve Capanna, Bozzuto’s.

These smiles belong to (l-r) Richard Schmidt, Elmer IGA; Mi- Tom Mega (2nd from l) of Anderson International Foods is chael Quinn and Elliott Simhon, Feltman’s of Coney Island; joined in this photo by (l-r) Ron Murphy, Ron Murphy Jr. and Taking care of business at the show for Stew Leonard’s are and Jeannette Schmidt, Elmer IGA. Tim Smith, all with Murphy’s Markets. Eddie Ottusch (l) and Rick Baker.

Travis Blauton (r) of Adam’s Hometown Market poses for Jim Creely (2nd from l) of Bozzuto’s says hello to (l-r) Chris a photo with Bill Emerson (l) of Advantage Solutions and Mentzer, Michelle Kee and Jon Klinshaw, all with Rastelli These folks from Bozzuto’s are Renee Delmotte (l) and Barry Cratty of Saputo. Market Fresh. Sean Desmond.

All smiles for our photographer are Mark Caraluzzi (l) of Arthur Ackels (c) of Roche Bros. is flanked in this photo by Jeremy Scrivener (l) of Ted’s IGA chats with Joe Moran of Caraluzzi’s Markets and George Motel of Bozzuto’s. Greg Veneziano (l) and Brian Conti, both with Bozzuto’s. Jake’s Grillin’.

This foursome features (l-r) Michelle Apple, Hillsdale Su- Here we have (l-r) Dominick Petrocelli, retired from Bozzu- permarket; Thomas DeLuca, 3D Sales & Marketing; Fred to’s; Jeff Hajjar, Bozzuto’s; Dan Tiberio and Allison Schanck, Making their way to Foxwoods from the Baltimore market Brescia, Chanatry’s Market; and Fred Hoefferle, BelGioioso Adam’s Hometown Markets; Greg Veneziano, Bozzuto’s; are Eddie’s of Roland Park’s (l-r) Jeff Macis, Gus Smith, An- Cheese. Mike D’Ottavio and Velton Koons III, M D’Ottavio Produce. drew Schaffer and Michael Schaffer.

12 | FOOD WORLD April 2019 www.best-met.com In Ledyard, CT For Its Annual Independent Retailer Conference

Imperial Distributors is well represented at the show by (l- This group shot includes (l-r) Sean Desmond and Steve r) Ken Trudeau, Brian MacWhorter, Robin Carpenter, Alisha Heggelke, Bozzuto’s; Edward Suh, Bogopa; Renee Delmotte, This photo features (l-r) Brian Conti, Bozzuto’s; Frank Vitale D’Ambrosio and Mark Eaton. Bozzuto’s; and Kevin Na, Bogopa. and Yolanda Vitale, ; and Rob Thatford, Bozzuto’s.

All smiles for the camera are (l-r) Mike Jarvis and Rob Co- Taking a break from a busy show are Chris Meehan (l) of This family photo features Paul Timlin (l) of Allen Harrim hen of Bozzuto’s and RMG’s Joe Cunnane and Bill Gable. Northeast Food Marketing and Bill Glass of Bozzuto’s. Foods and Daisy Timlin of Muuna.

These fine folk are (l-r) Scott Richards and Jim Morrison, Bozzuto’s Mike Brackett (r) poses for a photo with (l-r) Jona- Crystal Geyser; Mike Atkinson, Douglas Sales; and Jim Dal- Maggie Vrabec (l) of MPS Enterprises says hello to Bozzu- than Schupper, Yvonne Culley and Craig MacDonald, all with ton, Royal Oak. to’s Mike Bellis. CMC Foods.

Fred Frazao (c) of FMF Consultants is joined here by Steve Tony Greco (l) of MPS Enterprises chats with Ava Stone of Kevin Glynn (l) of The Gourmet Factory poses for a photo Heggelke (l) and Jeff King, both with Bozzuto’s. FIA. with Pam Carstens of Bozzuto’s.

Making sure all runs smoothly at the show are Bozzuto’s Here we have (l-r) Tony Greco, MPS Enterprises; Mike Jarvis, John Borzumato (l) of Alpha 1 Marketing is joined here by Steve Heggelke Jr. (l) and Rob Cohen. Bozzuto’s; Maggie Vrabec and Lisa Connelly, MPS Enterprises. Dan Brock of Bozzuto’s. www.best-met.com April 2019 FOOD WORLD | 13 SPECIALTY FOODS Plant-Based Holds Strong Against From page 10 The Meat And Dairy Birthers Although the meat and dairy industries To date, the following 41 states have legalized indus- have drawn the battle lines against their trial hemp cultivation: Alabama, Alaska, Arizona, plant-based counterparts, it looks Arkansas, California, Colorado, , Dela- like the latter are building strength ware, Florida, Hawaii, Illinois, Indiana, Kansas, Ken- in numbers and are ready to stand tucky, Maine, Maryland, , Michigan, their ground. Many consumers Minnesota, Missouri, Montana, Nebraska, Nevada, have become concerned not only New Jersey, New Mexico, New York, North Carolina, with more healthful eating but North Dakota, Oklahoma, Oregon, Pennsylvania, also with the impact of their carbon Rhode Island, South Carolina, Tennessee, Utah, Ver- footprint and as a result, the plant- mont, Virginia, Washington, West Virginia, Wiscon- based food industry has not just de- sin, and Wyoming. And, according to a recent study veloped solid roots but is exponen- conducted by High Yield Insights, a company that tially growing due to the increasing specializes in market research and reporting on the demand for meat and dairy alternatives cannabis industry, around 40 percent of U.S. adults among shoppers. According to the Dairy age 21 and over indicated a willingness to explore Farmers of America (DFA), the sales of CBD under the right conditions. “We are seeing traditional dairy milk dropped about many consumers looking to incorporate CBD into $1.1 billion last year from $14.7 billion their wellness regimen,” said Mike Luce, co-founder in 2017 to $13.1 billion. Non-dairy of High Yield Insights and a 20-year veteran in con- milks, on the other hand, are on sumer insights and market research. “Consumers the rise. A Mintel report from last previously unfamiliar with CBD are rapidly showing year revealed a 62 percent growth interest. Now that the federal government is finally in non-dairy U.S. milk sales from taking steps to clear up the hazy legal picture, people 2012 to 2017, reaching an estimat- see CBD as an entry point to the therapeutic ben- ed $2.1 billion in sales that year and efits of cannabis.” With numbers like that, CBD is according to the market research firm certainly here to stay, as long as the FDA (which is Markets and Markets, the global dairy holding a public hearing next month to discuss de- alternatives market is forecasted to reach veloping a regulatory framework for the use of CBD $19.5 billion by 2020 and the global plant- in consumer products, including foods and bever- ages) doesn’t decide to create too many roadblocks. See SPECIALTY FOODS on page 16 Canada Dry Proud to provide customers and consumers alike with the best tasting beverages.

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www.best-met.com April 2019 FOOD WORLD | 15 it has officially become mainstream. The movement has ing consumer goods products (FMCG) — items such SPECIALTY FOODS grown so much in popularity that the Plant Based Foods as food, toiletries and other consumables — in 2018 From page 14 Association (PBFA) has launched a plant-based NSF In- and it predicts that the sustainability market will reach based market is expected to hit $5 billion. Be- ternational certification and logo to make identification $150 billion by 2021. It also reported that conventional yond Burger’s pea protein based patties can be found in of products easier for consumers while shopping. “The product sales have dropped whereas sustainable prod- many mainstream retailers, Nestlé is developing a meat- launch of the Certified Plant Based seal is an exciting uct sales have grown 20 percent since 2014. And while less product called the Awesome Burger that it hopes to next step for the fast-growing and innovative plant- Nielsen found that only 34 percent of Baby Boomers release by the end of 2019 and the darling of this year’s based foods industry,” said Michele Simon, PBFA’s ex- are altering their buying habits with the environment Consumer Technology Association’s CES show, Impos- ecutive director. “As consumers are looking to purchase in mind, 75 percent of Millennials are making the con- sible Foods, hopes to launch a retail version of its much- more plant-based options, this new seal ensures confi- scious decision to shop more eco-friendly. Retailers buzzed about plant-based burger also by the fourth dence in what plant-based means.” such as Delhaize and Kroger have both already quarter of 2019. Even has hopped onto this pledged to eliminate all single-use plastic bags by 2025. Not Just A Pretty Picture - trend with its Impossible Foods partnership resulting in Global CPG company Nestlé, also with a goal to make Sustainability In Packaging a meatless version of its flagship now being 100% of its packaging recyclable or reusable by 2025, piloted at 59 locations in the St. Louis area and when According to an article published by Nielsen last has partnered with Danimer Scientific (a leading devel- the fast food restaurants jump on something, you know December, shoppers spent $128.5 billion on fast-mov- oper/manufacturer of biodegradeable plastic products) to develop biodegradeable water bottles using an effec- tive biodegradable alternative to petrochemical plas- tics. Not only is this trend being noted by retailers and manufacturers, but the states are actively addressing the sustainability issue as well. With Maryland poised to be the first state to ban foam cups and food containers and New York expected to ban single-used plastics statewide (it will be the second state to do so after California), ex- pect more states to follow closely in their footsteps with environmentally safe initiatives meant to reduce waste. While price is the biggest deterrent to companies mak- ing the switch, expect “Reduce, Reuse, and Recycle” to become the mantra when it comes to food and beverage packaging design as mounting pressures from shoppers will eventually force several manufacturers to cave.

Fresh Food Made Easy

www.eastcoastfresh.com 9001 Whiskey Bottom Road Laurel • MD 20723 Phone 410•799•9900

16 | FOOD WORLD April 2019 www.best-met.com ssssssssssssssssssssssssssssss “My employer actually provides TAKING STOCK volunteer opportunities and From page 6 encourages me to make a from them for that reason. What we’ve also witnessed in the past six months is an diff erence in our community... unacceptable increase in out-of-stocks and no direction regarding private label I appreciate that.” strategy. I can attest that several of our competitors including ShopRite, and Giant have lower than our wholesale cost. This isn’t a good way to start a relationship that was going to be complex from the outset. I know that some of our SVU peers have reviewed our supply agreements to understand when we can become free agents.” And one more comment from another multiple-store owner: “I think these guys are in way over their skis. Are Steve Spinner (UNFI CEO), Sean Griffin (Supervalu CEO) and Chris Testa (UNFI president) hiding from us? I thought our relationship with Supervalu had improved tremendously over the past five years because of the skills of (past CEOs) Sam Duncan and Mark Gross. Those men understood our needs and challenges and were excellent listeners. Now I feel like we’re back in the dark days of the Jeff Noddle and Craig Herkert era. Show me some leadership.” Beyond its issues with earnings, stock price, service levels and criticisms from their own independent customers, UNFI has created another mess with the sale process of its Shoppers Food & Pharmacy stores. UNFI was candid from the outset – they would be divesting themselves of all corporately-owned retail. The process to sell Shoppers started months before the UNFI/Supervalu deal was announced. Several retailers told us that final bids were due last November, but to this point, except for a handful of stores that have been sold (others have been closed), the process lingers. During UNFI’s recent second quarter conference call (it posted a $341 million loss), Spinner said he was confident that the sale will be completed in the coming months. Coming months? Seriously, why is the process taking so long? It’s unfair to the thousands of associates who still work for Shoppers, who have been told nothing directly about their future. BENEFITS ARE It’s gotten to the point where Mark Federici, president of UFCW Local 400, which represents Shoppers’ clerks and meatcutters in the Washington market (and is the largest UFCW Local in the country), has threatened action against UNFI if they aren’t more forthcoming about the status of the retailer’s employees. 365 DAYS-A-YEAR “Our members have been the backbone of Shoppers’ stores far longer than UNFI has had an interest in those stores and they deserve more respect than UNFI IDDBA PEOPLE PEOPLE are our greatest assets and has shown in this process,” Federici wrote in a letter to Spinner. “They deserve to understanding their desires as employees know what the future holds.” COMMUNITY And to his members, Federici penned this: “In the coming weeks, we expect and consumers is key to future success. UNFI to provide us with the information we have requested. If they do not, we will TECHNOLOGY Gain insight to nurture, train and retain take appropriate action, including actions we will be asking you to participate in, COMPETITION your best people. Acknowledge, adapt both in your stores and in the communities you serve.” I believe it was the great educator and civil rights leader Benjamin Mays who FOOD SAFETY and merchandise to new consumers. said, “Honest communication is built on truth and integrity and upon the respect IDDBA will be assisting you with all of of one for the other.” CONSOLIDATION this throughout 2019. For UNFI, it’s time to step up to the plate or it will be getting later much earlier than they think. Mentor Grants Jim Donald: We Hardly Knew Ye Certification Programs OK, now that you’ve read the headline on page 1 you should realize that we’re Career Center exaggerating more than a little bit here. That Jim Donald will be stepping down as CEO of Albertsons on April 25, seven months after he accepted the position and 13 Member in Transition Program months after he rejoined the large Boise, ID-based retailer after 27 years, shouldn’t be surprising. Retail Management Forum After all, the catalyst for Donald to come back to Albertsons in March 2018 was Bob Miller, then chief executive of the supermarket chain and one of the greatest leaders in the supermarket business of the past 50 years. In the nearly 30 years that I’ve known Jim, he has often mentioned that he’s learned more from Miller (now chairman emeritus) about the grocery business than anybody else. He con- siders him a mentor. So, as Albertsons began the process of attempting to complete a merger with Rite Aid, Miller called on his old protégé to help run Albertsons while Miller and then Rite Aid chief executive John Standley (another protégé) would work on di- MEMBERSHIP IN THE LEADING TRADE ASSOCIATION gesting the bigger enchilada. Donald made it clear from the outset that rejoining Albertsons wasn’t going to be a long-term gig, but like all of his previous jobs, Jim FOR DAIRY, DELI AND BAKERY BUYERS AND SELLERS IDDBA.ORG IS ONLY A CLICK AWAY. TAKING STOCK continues on page 23

www.best-met.com 2019 IDDBA 4/C • “LEXY” PEOPLE • 6" x 10.5" April Food 2019 World FOOD AD WORLD | 17 BELTRAME LEFFLER ADVERTISING • 317-916-9930 • 02-11-19 • S2 020719 Anaerobic Digesters Offer Financial Efficiency, Sustainability BioEnergy DevCo Develops Smart Way to Handle Organic Waste While Companies Focus On Food Safety, Sustainability, Growth A Maryland company – BioEnergy DevCo (BDC) – said Two other key members of the BDC team are Peter Et- boxes. The fledgling firm will also work with its clients to it has found a sustainable solution to handling organic tinger and Vinnie Bevivino. Ettinger serves as VP-business ensure that no glass or mixed waste that contains excessive waste and plans to build the regions first anaerobic diges- development and operations and Bevivino is BDC’s direc- amount of packaging and other non-biodegradable mate- tion facility that will allow up to 100,000 tons of organic tor of organics. rial are included. waste to be sustainably processed. Ettinger is currently developing practices and strategies As director of organics, Bevivino is passionate about de- “BDC is a rare company that can simultaneously im- that will transition the company from a planning mode to veloping food waste recycling infrastructure. He founded prove the bottom line for our customers and help the a live one. Chesapeake Compost Works, at the time the largest food environment.” said Shawn Kreloff, CEO waste composting facility in Maryland. There Bioenergy DevCo. “If you have fruit and he and his team received 18,000 tons of mate- vegetable trimmings, , fish, ma- rial per year from many of the region’s largest nures- any organics that you now take to food waste generators and processed it into already crowded landfills or incinerators, a line of bagged compost-based soil amend- even waste contaminated by paper and ments sold throughout the Mid-Atlantic. plastic to farms, BDC and its anaerobic Now at BDC, he’s responsible for outreach digesters can lower your costs of disposal and marketing to the region’s food proces- and improve your margins.” sors, distributors, and retailors, and explain- Anaerobic digestion harvests energy by ing to them the economic and environmental harnessing the power of microorganisms benefits of recycling food waste in an anaero- to break down, or digest, biodegradable bic digester instead of sending it to a landfill. waste in air-tight tanks without oxygen. Bevivino explained, “100,000 tons per The resulting product is captured, refined, year may sound like a lot, but you have to and used as a renewable natural gas to help remember that we’re situated amongst the power nearby businesses or fleet vehicles. companies largely responsible for keeping Besides renewable natural gas, organic the Mid-Atlantic region fed. It’s been excit- soil amendment products are produced ing to meet with food business owners and during the process which can be used in The BTS DevCo leadership team includes operators, learn their challenges, and develop storm water management, land develop- (l-r) Vinnie Bevivino, director of organics; solutions that don’t just improve the busi- ment, horticulture and agriculture. Shawn Kreloff, CEO; and Peter Ettinger, VP of ness’s environmental footprint, but also its Kreloff, an entrepreneur with more business development and operations. bottom line.” than 25 years of investing in and working RIGHT: A rendering of the planned BTS Bio- After meeting with Bevivino, Ettinger and with technology driven companies, was Energy and Maryland Food Center Authority Kreloff, it was obvious that all three are con- aware that the cost of waste removal in the anaerobic digester facility. fident that their new business initiative will United States was increasing exponential- be successful. They are also very proud that ly with the number of landfills and incin- they are developing a system that will serve as erators, two of the most frequently utilized landing spots “Anaerobic digestion is a new technology for most of our a practical customer solution for organic waste while also for commercial waste, diminishing. So, he turned to BTS potential clients, so working together in identifying the aiding the environment. Biogas, an Italian firm which has successfully pioneered opportunities in reduced waste cost, in managing energy According to Don Darnall, executive director of the the European anaerobic digestor processing model. Wide- costs and improving sustainability of their business is an MFCA, “What made BDC different is they didn’t meet ly used throughout Europe, the company and its affiliates important first step,” said Ettinger who has been involved with me to sell a machine, but came in and said, ‘We want have more than 200 plants now in operation in six Europe- with entrepreneurial-oriented companies (including sev- your waste, and in exchange, we can offer a lower cost to an countries, the UK, South America and Japan. eral of his own) over the past 25 years. dispose it.’ They knew challenges specific to dairy farms “I personally witnessed the success that anaerobic diges- “As we visit with local food, grocery and fresh cut busi- and other fresh food production and distribution facilities tion offers,” said Kreloff. “By bringing this unique technol- nesses who fit our profile, all note the rising cost of waste and looked to create a plan specific to our needs.” ogy to North America, we knew we could provide a ben- and a need to find improved sustainability solutions. It’s Another supporter of the company’s initiative is Jason eficial service to those companies seeking organic waste still early in our mission, but I think we’ve changed a few Lambros, VP-food at Coastal Sunbelt. “As a leading inde- solutions and be good environmental neighbors as well.” perceptions and am hopeful we are going to develop some pendent fresh produce distributor, Coastal Sunbelt is excit- Kreloff cited a recent report from the New York gover- strong partnerships when we open the facility.” ed to partner with BioEnergy Development Group. Using nor’s office which noted that organics comprise 31 percent Among the reasons that BDC decided to locate its first the latest green technology, BDC will convert our fresh of New York City’s residential waste stream. anaerobic digester in Jessup was the centralized location produce trimmings as well as surplus produce that cannot In landfills, this organic waste decomposes, releasing of the MFCA facility as well as being in close proximity be donated into renewable energy. The sustainable bene- methane gas. In incinerators, it is of poor energy value and to many distributors and manufacturers in the area. Part fits of this partnership and process will move the dial for a a potential pollutant. However, energy-rich food waste can of BDC’s business model calls for the company to pick up greener future for our business and community.” also be processed through anaerobic digestion, creating food waste and process it at their facility at a price that’s Kreloff noted that BDC is investing about $20 million to methane gas that can be captured and used as an alterna- lower than sending it to a landfill or incinerator. By using build its anaerobic digester and to create the infrastructure tive to natural gas. This same material creates an organi- anaerobic digestion, carbon is returned to the earth there- to support it. About 20 new jobs will be created when the cally rich digestate, or soil amendment, that can be used by reducing greenhouse gases and truck traffic while at the facility opens. He added that the company hopes to build directly in storm water management, in replenishing soils same time creating a renewable fuel. BDC will have equip- additional digestors in the Mid-Atlantic and can also cus- and can be composted and converted into a rich organic ment to separate food from packaging, allowing for the re- tom build digesters for those firms that want to keep the product that can replenish the city’s soil. ceipt of food waste in bags, plastic containers, or cardboard process on site.

18 | FOOD WORLD April 2019 www.best-met.com We realize there’s a lot on your plate, so thanks for coming out.

Thanks to all who attended Independent Retailer Conference 2019!

A BIG thank-you to all of our suppliers and customers for your support! We really value our partnership and can’t wait to see you again at our next Food Show, Merchandising Marketplace, on August 6 – 7, 2019, at Foxwoods Resort Casino.

www.bozzutos.com 1-800-243-9761

For more information, contact Don Anthony at (203) 250-5651 or email [email protected]

boz_39525_05_01_IRC19_10x10p5_ThankYou_m.indd 1 3/28/19 9:30 AM www.best-met.com April 2019 FOOD WORLD | 19 Legislative Line Getting High In The Aisles A not-so-well publicized item ence. It is just a fact. ways or usually discarded food not our problem,” says FDA. in the new farm bill which le- By the way, Commissioner nearing the package date. Thus, the product could start to galized hemp is getting a bit of Gottlieb’s departure was a sur- appear in the marketplace next attention within the farm com- prise to many. It was reported More On Fake Meat year. munity, manufacturing sec- that he simply wanted to spend The latest update is that USDA tors, at state house levels and more time with his New En- and the FDA have worked out Seafood Mislabeling even with financiers who want gland based family. He will be an oversight agreement that has And speaking of seafood la- to cash in on what may be the missed as I’ve seen many FDA everyone within non-govern- beling, according to a report next big product ingredient to Commissioners come and go ment circles and within govern- from Oceana that crossed my enhance the health of your cus- over my food industry career, ment in total agreement- a rari- desk recently, one in five sea- tomers. What’s up you say? Well, but Gottlieb was a rising star ty these days. FDA will monitor food products are mislabeled, it appears as if the Department and one of the most likeable cell collection issues, cell banks deceiving consumers about of Agriculture and the Food and agency heads within the huge and growth. Then regulation the type of fish or where it was Drug Administration are learn- federal bureaucracy. No replace- tasks will fall to USDA’s Food caught. The study was based on ing that they have their hands ment has been named at press Safety and Inspection Service 2,000 samples across 30 states. full as they begin to draw up time. Barry F. Scher (FSIS) during the cell harvest The study is calling for more road plans for non-psychoactive Policy Solutions LLC stage. FSIS will then have re- government oversight of the cannabis production to legally SNAP Work Requirements sponsibility of production and seafood industry. The federal market cannabidiol, or CBD, You will recall in my prior labeling of both cell-based meat government does have a pro- in food and dietary supplement columns that President Trump ti-hunger advocates argue that and poultry products. cess in place called the Seafood products. and his USDA secretary, along curbing the waivers will harm There are still regulatory is- Import Monitoring Program Meanwhile, over on Capitol with many Republicans, were those with a low income who sues to be decided but both which currently only applies to Hill, retiring FDA Commission- looking to clamp down on food might be considered able-bod- agencies have amicably agreed 13 types of imported fish and er Scott Gottlieb has said that he stamp (SNAP) recipients by re- ied, but who struggle with sig- to develop “joint principles” on only traces that product from wants Congress to discuss “al- quiring work requirements in nificant barriers to work, such such critical issues as labeling boat to the U.S border. The re- ternative approaches” to oversee order to obtain food stamps. as homelessness, lack of trans- which is extremely important to port urges more seafood trace- CBD development. It is an un- House Democrats said, “No portation, mental health issues the meat and poultry industry. ability from catching to plating known if his pending departure way” and voted against work re- or addiction recovery. This may Uma Valeti, CEO of Memphis and is critical to ensure that all will slow down the CBD review quirements in the new farm bill. become an embarrassing issue Meats, a leading cell-based meat seafood sold in the U.S. is safe, process, but I’d say it is likely. Not one to give up, Agriculture for Republicans as I envision the company, said, “Demand for legally caught and honestly la- This is an issue that is in legal Secretary Sonny Perdue is still Democrats using the issue on meat is projected to double by beled. We shall see if our law- limbo land according to Politico pursuing work requirements the campaign trail. 2050, and every stakeholder we makers begin to tighten up on News who stated that “it’s cur- and just last month issued a speak with, regardless of pro- traceability. Several food chains rently illegal for companies to terse press release reiterating Food Labeling duction method, shares the goal have voluntarily stepped up to sell food containing added CBD the department’s rationale for Meatingplace News recent- of feeding our growing planet in the plate to reinforce supplier or the psychoactive compound its new proposal to crack down ly reported on two studies on a safe and sustainable way.” verification policies. RHC across state lines, or mar- on states’ ability to seek waiv- food labeling. The first was a re- ket CBD or THC-containing ers from existing work require- port on a survey on the impor- GMO Salmon In 2020 More On Recycling products as dietary supplements ments of able-bodied adults tance of clear labeling to con- Genetically modified salmon Last month I wrote about the because both are ingredients without dependents. The pro- sumers. More than 47 percent was approved over three years renewed public interest in re- in FDA-approved drugs. That posed rule aims “to restore the of respondents said that they ago by the FDA, but the issue ducing waste and packaging. means the agency needs to issue system to what it was meant to read the nutrition and ingredi- quickly became a political foot- After submitting my monthly a rule for CBD products to be be: assistance through difficult ents information on labels very ball. The latest news is that the column, the Washington Post legally marketed.” Lots of ques- times, not lifelong dependency,” carefully. The study identified GMO product may be appear- ran a story that caught my eye. tions will need to be addressed USDA highlighted in its press the terms “antibiotic free, clear ing on grocery shelves next year. It stated that more than 70 per- from the farm levels, interstate release. This is an issue of sig- label, hormone free and trans- Senator Lisa Murkowski (R- cent of Earth’s surface is covered transportation, and marketing nificant importance to our food parency” as the four most im- Alaska) who has led the charge by ocean and the waters are in- of such products. FDA is hold- retail industry as it would neg- portant consumer needs when against the GMO salmon to pro- creasingly getting clogged with ing a meeting this month to be- atively impact food stamp sales buying meat and seafood. The tect her state’s salmon industry, plastic waste – leftovers from gin to iron out answers to a lot by decreasing the ability of food second study was conducted by is not giving up the fight as she consumer activity that have of questions from those inside retailers to serve those in critical the Johns Hopkins, Harvard and still wants to see very stringent created extremely huge garbage and outside of the government. need of food assistance benefits. the National Consumers League labeling requirements. How- patches and choke fish, birds, PS: If my headline made you on the impact of date labels on ever, FDA has determined that and other marine life. I recent- smile, you should know that According to Politico, USDA food waste. The study found it does not need to finalize pri- ly saw these floating masses marijuana and hemp are differ- says that states are abusing their widespread confusion about the or labeling guidelines because first-hand while on a December ent within the cannabis plant ability to get waivers from able meaning of date labels. Over 84 under a UDSA law enacted in cruise. group. CBD can alleviate stress bodied adult dependents’ work percent of the respondents dis- 2016, there is already a require- How to solve the problem or reduce pain without getting requirements, which were writ- carded food near the package ment for the disclosure of GMO the user high. And no, I don’t ten in a bipartisan 1996 welfare date at least occasionally, while ingredients nationwide and that See LEGISLATIVE LINE know this from personal experi- reform law. Democrats and an- 37 percent reported that they al- the law applies to salmon. “It’s on page 26

20 | FOOD WORLD April 2019 www.best-met.com Thank you!

Without you, we would not have been able to serve as the food assistance safety net for hungry Marylanders over the past 40 years. Your generous food donations continue to make a positive impact in local Maryland communities from Cumberland to Cambridge.

Together, you have helped us distribute Acme McCormick/Shilling ALDI Inc. Medifast close to 105 million pounds of food!* Amazon Pepsi Cola BGE Performance Food Group BJ’s PriceRite Brisk Wind Farms Redner’s C&S Wholesale Rite Aid Distribution Center Canada Dry Royal Farms Coca-Cola Safeway Inc. Eastern Division Wholesale Sam’s Club Save-A-Lot Shop n Save Gordon Food Services Shoppers Food Warehouse H&S Bakery ShopRite Herr Foods Target Jessup Produce Market The Chef’s Warehouse LA Foods The Fresh Markets Lancaster Foods Tyson Food Little Caesar Enterprises W.D. Class & Son Magnet Gleaning Project *Logos indicate donors that gave 2.5 million pounds or more.

www.best-met.com April 2019 FOOD WORLD | 21 Saint Joseph’s University, Italy-America Chamber Of Commerce Host International Specialty Food Summit

Saint Joseph’s University and the Italy-America Chamber Of Commerce teamed up to host an International Special- ty Food Summit last month at the university’s Mandeville Hall. Eileen Acello (l) of SJU joins the panel that discussed “Shaping Customer Experience,” including (2nd from l-r) Ar- thur Goncalves, Balducci’s; Will Magistrelli, Wakefern; Bill These folks are (l-r) Antonio Corsano, Veroni Meats; Brian Mignucci Jr., Di Bruno Brothers; Mike Cadoux, Kabaq 3D McGowan and Frank Pacifico, Wakefern; and John Pauciullo, This Bimbo Bakeries duo includes Taylor Convery (l) and Technologies; and George Latella, SJU. RDD Associates. Colin Ward.

All smiles for our photographer are (l-r) Dan D’Angelo and Among those addressing the summit were Ron Tanner (l) of George Latella, SJU; Justin Giorla, Cento; and Carlo Pratesi, David Goodyear (l) of Giant/Martin’s is joined in this photo the Specialty Food Association and Kevin Ryan of the Inter- Universita di Roma. by Donna Serio of Naturlich. national Corporate Chef’s Association.

Here we have (l-r) Chris Marcucci, Streetmarc; Jeff Marshall Making their way to the SJU campus in Philadelphia for the and Kevin Kane, Tandem Associates; Tom Mainzer, Penn- International Specialty Food Summit are Bill Mignucci Jr. (l) This Dietz & Watson trio features Louis Eni (l), Lauren Eni sylvania Department of Agriculture; and Mark Plamandon, of Di Bruno Brothers and Vincent Grispino of Altamonte’s. (c) and Michael Eni. Tandem Associates.

Happy to be on hand for the first International Specialty Food Summit are Federico Tozzi (l) executive director of the Will Magistrelli (r) of Wakefern chats with (l-r) Antonio Cor- These Balducci’s gentlemen are Arthur Goncalves (l), Ken Italy-America Chamber of Commerce and Joe Bivona, execu- sano, Al Adelson and Marco Veroni, all with Veroni Meats. Thompson (c) and Gerald Lascale. tive director of SJU’s Academy of Food Marketing.

22 | FOOD WORLD April 2019 www.best-met.com Texas Private Equity Firm Acquires Turkey Hill Dairy From Kroger ssssssssssssssssssssssssssssss From page 1 “Turkey Hill represents an ex- on May 25) and the after-tax pro- citing opportunity to invest in a ceeds will be used to reduce debt. store convenience division (which premier brand with an established In December 2018, Kroger also TAKING STOCK included such banners as Turkey reputation for quality, flavor vari- sold its digital coupon and rebate Hill, Loaf ‘N Jug, Kwik Shop, Tom From page 17 ety, and authenticity, within the publishing division, YouTech, to Thumb and Quik Stop) for $2.15 would tackle this challenge with the same passion and tireless work ethic that have large and growing ice cream and Inmar, the Winston-Salem, NC- billion to British c-store and pe- been hallmarks of his entire career (starting with in his native Tampa in the refrigerated drinks space. We are based technology and analytics troleum firm, EG Group. mid-1970s). impressed with the accomplish- firm which will gain a long-term While no price was announced However, as it often does, life has a way of altering the best laid plans. When ments of the business under the services agreement with the re- for the Turkey Hill Dairy deal, the the Albertsons/Rite Aid plan failed to even make it to a shareholder vote, Albert- stewardship of Kroger and look tailer. Kroger acquired YouTech new owners said it would contin- sons’ principal owner, PE firm Cerberus Capital Management, felt that it now had to forward to completing a seam- in 2014. ue to operate the large dairy and revamp Albertsons’ leadership in an effort to take it public or find another merger less transition of the business to a In late 2017, Kroger said it partner. In September, Donald, 65, agreed to take on the role of CEO, a role where headquarters in Conestoga, PA standalone entity and partnering would explore potential sales op- he’s had plenty of experience from his tours of duty at Pathmark, Starbucks, Haggen and retain the approximately 800 with Turkey Hill’s management tions for its non-core businesses and Extended Stay Hotels. He was also well versed in the often complex relation- full-time, part-time and seasonal team to drive significant growth and would also look to expand ship that CEOs have with their private equity owners. associates currently employed by through continued product in- its digital and e-commerce opera- Still, elevated status didn’t mean that Donald’s long-term focus had changed. Turkey Hill. novation,” said Robert Pistilli, tions under a new initiative called When I had dinner with Jim last summer (pre-Rite Aid collapse) he made it clear “We believe this is the right managing director of Peak Rock Restock Kroger. While it has now that his role was transitory and that he would be moving on once all the collective step to ensure the Turkey Hill Capital. sold three businesses within a parts were in sync. He added that he would attack his new job with the same dedi- business can meet its full poten- cation and zest as he did with his other jobs. When he was elevated to CEO the view Anthony DiSimone, CEO of year, it has also signed an exclu- tial and continue to grow its suc- would change, but Donald’s attitude wouldn’t. He was determined to retool a solid Peak Rock Capital, added, “We sive agreement with British online cessful ice cream and beverage company with aging stores and significant debt (more than $10 billion). He was believe that Turkey Hill represents distributor Ocado (it is currently brands,” said Erin Sharp, group also confident that his strong people skills would only enhance an already solid an excellent platform for growth building three of what may be as VP for Kroger Manufacturing. culture. However, he made it clear that it was important to find his successor, one through near-term organic ini- many as 20 online warehouses “Throughout this process, we who was younger and perhaps would have a differentiated background. tiatives and strategic acquisitions. in the U.S.) and also expanded were extremely impressed with Vivek Sankaran, former PepsiCo COO, fits that description on paper. He’s 10 We will be aggressively pursuing its Home Chef Express meal kit years younger than Donald and has also worked for a large, pressure-filled organiza- Peak Rock’s professionalism and complementary acquisitions to program to its nearly 2,800 super- tion similar in size to Albertsons (approximately 270,000 employees). He became vision for the future of the Turkey extend the product and brand markets which currently operate available after losing the battle to become Pepsi’s chief executive last fall when Hill business. We look forward to portfolio.” in 30 states. Ramon Laguarta was named to replace Indra Nooyi. working with them to ensure a Closing is expected during Those who know Sankaran describe him as extremely intelligent with strong smooth and successful transition Kroger’s first quarter (which ends negotiating skills and the ability to work well with both his associates and with for all parties.” the trade (he served as PepsiCo’s chief commercial officer for the past four years). But one silo Sankaran has not yet entered is food retailing. And despite his ssssssssssssssssssssssssssssssssssssssssss many years of dealing with the nation’s top retailers, Sankaran has never sat on that side of the desk. It won’t be an easy conversion – retail, particularly food retail, TRADE CALENDAR is as “real time” as it gets. It’s visceral, seemingly endless, with successes fleeting because it’s so fluid. Dealing with Albertsons’ internal issues might seem somewhat April 24 June 10 outing. More detail to follow at a parallel to what Sankaran was used to at Pepsi; however the on the field issues later date. The Greater Philadelphia chap- Boyer’s Markets will hold its are much different. The company operates 2,300 supermarkets under nearly 20 ter of the Network of Executive annual golf outing. More details to different banners. Within each market are hundreds of individual trading areas with Women will host an event from follow at a later date. September 11-14 different competitors – some established, some emerging – operating with diverse 3:00-6:00 p.m. at Saint Joseph’s Natural Products Expo East will retail styles. There will be unions to deal with and more than 20 distribution centers University in Philadelphia. For and 20 manufacturing plants to oversee. And beyond that, it goes back to instinct. June 10 be held at the Baltimore Conven- more information, go to www.ne- tion Center. For more information, Will Sankaran be able to reinvent himself as a merchant/operator? And will he be Family Owned Markets will host wonline.org. go to https://www.expoeast.com able to take a company, which has unsuccessfully tried twice, into the public arena? its Heather “Kappesser” Diguar- Donald is betting strongly that Sankaran is the right man for the job. And he’s di Memorial Charity golf outing at well aware that “learning retail” is Sankaran’s most important priority. As such, he April 30 Foxchase Golf Club in Stevens, PA. September 24-25 will be spending a lot of time with his successor to accelerate that curve. The New York Metro Chapter of Registration starts at 11:15 a.m. The 2019 Latino Food & Bev- And Donald himself isn’t going to Tahiti anytime soon, either. He’ll be staying the Network of Executive Women followed by shotgun start at 12:45 erage Show will be held at the on as co-chairman (along with Cerberus executive Len Laufer), adding that he’ll be will hold a “Discussion on Disrup- p.m. For more information, contact Meadowlands Expo Center in Se- nearly as busy as he’s been since he got to Boise 13 months ago (the irony is that tion” at Liberty House in Jersey Jim Kidwell at jim.kidwell@family- caucus, NJ. For more information, with Donald’s constant travel schedule visiting Albertsons’ 14 divisions, he didn’t City, NJ. Panel, moderated by Kathy ownedmarkets.com. call 848.258.2144 or email lati- spend the majority of his time at company’s headquarters). Rusello of USA, will [email protected]. While this indeed might be Jim Donald’s last full-time pit stop, don’t expect him feature; Donna Banks-Ficcio, Weis June 23-25 to retire anytime soon. There will be board directorship opportunities to consider Markets; Lilian Lee, Unilever; and October 17-19 (if he desires) and I’m certain he’ll continue his very successful sidebar career as Chris Skyers, Wakefern. For more The Summer Fancy Food Show a speaker. It’s something he loves to do, is very good at and as Jim has joked, “the information, go to www.newonline. will be held at the Javits Center PMA’s Fresh Summit will be in New York City. For more infor- margins are much better than running a supermarket.” org. held in Anaheim, CA. For more mation, go to www.specialtyfood. And certainly there must be a few hundred people in America who haven’t yet information, go to https://www. com/shows-events/summer-fan- heard his fish story. May 7-8 freshfrommexico.com/event/pma- cy-food-show. fresh-summit-2019/. DPI Specialty Foods will hold ‘Round The Trade its 2019 holiday trade show at the July 8-9 If you would like to publish an Hilton in Baltimore. It looks like there’s more management turnover at . Earlier this month, CEO Weis Markets will hold its an- event in our trade calendar, please Jesper Hojer resigned after a two-year tour of duty. Ignazio Paterno, deputy purchas- nual golf outing. More details to send entries to Terri Maloney at ing director at the Neckarsulm, Germany discounter and former chief exec at Lidl’s June 2-4 follow at a later date. [email protected]. Include a IDDBA’s 2019 Dairy-Deli-Bak- contact name and phone number, email address or web address for TAKING STOCK continues on page 26 ery Expo will be held in Orlando, July 15 FL. Registration opens in January reservations or additional informa- at https://www.iddba.org. Ahold Delhaize USA Family tion. Foundation will hold its annual golf www.best-met.com April 2019 FOOD WORLD | 23 Giant Food Continues Its Support Of Military Through Sponsorship Of 37th Annual USO Awards Dinner

The 37th annual USO-Metro Awards dinner, a patriotic black-tie affair held last month at the Omni Shore- ham in Washington, DC, celebrated the service and sacrifice of the U.S. Armed Forces and their families. These fine folks from Giant Food on hand to show support for the troops are (l-r) Kate Kowalzik, Fe- lis Andrade, Rick and Susan Manzi and Liz Willey.

Retired Patriot Rob Gronkowski (l), the re- cipient of the USO Metro’s Merit Award for “individuals of outstanding creative talent who are dedicated to serving These USO supporters are (l-r) Joe Bivona, Saint Joseph’s University Acad- others…particularly the military” and one of Monster Ener- All smiles for our camera are Giant Food’s emy of Food Marketing; Karen Fernandez, Food World; celebrity chef Robert gy’s sponsored athletes, is joined here by Cyndi Ireland of Anne and Ken Golding. Irvine; and Justin Leonard, COO of The Chef Robert Irvine - R. Mission Inc. Monster Energy.

uals — some 665,000 Maryland- all of the different components ers — still struggle to put food it takes to end hunger, includ- Advertise with us online AISLE on the table. The food bank ing our innovative programs will be traveling across the state and collaborative partnerships and hit your target. chatter during this campaign, hosting that have enabled us to reduce From page 4 events in Baltimore, Western hunger all over the state.” Two It’s that simple. Maryland and on the Eastern food donors in particular that the equivalent of 102,000 meals Shore to both bring attention to have been absolutely vital to every day and more than 37 the sobering statistics of hunger the MFB’s operations are Gi- million annually. To commemo- and to also introduce MFB’s new ant Food and Perdue, who, in rate its 40 years in existence on five-year strategic plan during recognition of their long-term April 18, the non-profit will be its tour. “Our 40th anniversary partnerships, will be mark- launching a 40-week statewide is an opportunity for both cel- ing the 40th anniversary with campaign with the theme “It ebration and reflection,” said a Lead Gift (a contribution of Takes More Than Food to End MFB president and CEO Car- $250,000 or more to support the Hunger” at one of its most dedi- men Del Guercio. “We’re proud future growth of the food bank cated network partner organiza- of our success over the last 40 over the next five years). Both tions in Baltimore. Over the last years, but as we saw with the Perdue and Giant have been four decades, the issue of hun- recent government shutdown, firm supporters of the MFB Contact Karen Fernandez ger has grown increasingly com- there is a fine line between food since the eighties, not just with [email protected] plex. Today, MFB serves more security and facing hunger. Giv- generous financial assistance children who would otherwise en how vital our food assistance but through heavy volunteer- 443.765.1575 go to school hungry, more se- safety net has become, this is ism as well. Congratulations to niors who are forced to choose an ideal time to recommit to the Maryland Food Bank on 40 between medicine and food, our vision and redouble our ef- years – your continued growth and more working families who forts.” Del Guercio continued, and success is a testament to the work long hours, yet are still “We know there is more to our character of your mission. unable to make ends meet. De- mission than distributing food. spite a strong economy in recent During our anniversary celebra- Until next month… years, one in every nine individ- tion, we’ll shine a spotlight on

24 | FOOD WORLD April 2019 www.best-met.com New Exciting Changes - Stay Tuned! #bestmetisgettingevenbetter

www.best-met.com April 2019 FOOD WORLD | 25 Safeway Eastern Helps Food Banks ssssssssssssssssssssssssssssss ‘Kick Hunger’ During Month Of March TAKING STOCK From page 23 Italian division, will head the company on a “provisional” basis. In late March, Pat- rick Kaudewitz, who was CEO of parent firm Schwarz Group’s conventional super- market chain, Kaufland, also resigned. That follows several changes in the U.S. over the past few years. When the company first announced plans to enter the U.S. in 2014 it named Kenneth McGrath as its CEO. He stayed about a year, and after leaving the grocery business for a short spell, is now chief executive at rival Save-A- Lot. Replacing McGrath in 2016 was Brendan Proctor, who stuck around long enough to open the first batch of disappointing Lidl stores in the U.S. He was re- placed nearly a year ago by Johannes Fieber, another Lidl European import who remains on the job today. In February, Lidl bolstered its local management by add- ing company veteran Roman Heini as U.S. chairman. And at Heini’s hidey-hole, its corporate headquarters on S. Clark Street in Arlington, VA, Lidl has carved out about 1,000 square feet of space to operate its own convenience store – Lidl Express – that is open to the public, but it is expected to primarily serve Lidl associates who work in the high-rise building. The small unit carries typical c-store items as well as some fresh bakery, produce, prepared foods and beer and wine…in what is some- what of a rarity, ShopRite is closing a store. Collins Family Markets, which operates the Glen Burnie, MD ShopRite (and four other SRs in Philadelphia), will shut its doors in the Old Line State late next month. The store, a former Kmart, opened in Last month, Safeway Eastern started its 2010. The company said on its Facebook page “We have been unable to reach a second annual “Kick Hunger” campaign sustainable level of sales and have decided to close.”…April 5 was a busy day for with supermarket scavenger hunts in both Giant/Martin’s as it reopened the five former Shop ‘n Save stores it acquired from Baltimore and Washington area stores. UNFI late last year. The stores are located in Smithsburg, MD; Greencastle, PA; At the retailer’s Canton location in Balti- Berryville, VA; Hedgesville, WV; and Martinsburg, WV. Also debuting that day was a more, participants included (l-r) Keenan new Giant unit in Warrington, PA (a former Redner’s store) which replaces another Harrell and Poe of the Baltimore Ravens; older, smaller Giant unit located in nearby Jamison, PA…and speaking of Redner’s, Amy Chase, Maryland Food Bank; WBAL the Reading, PA-based regional chain will cut the ribbon later this month on its first NewsRadio’s Bryan Mehman; Ashley Hin- “fresh market” at the site of its still open conventional store on Berkshire Boulevard son and Andre Hepkins, WBAL-TV news in Wyomissing, PA…Weis Markets, which competes with both Giant and Redner’s, anchors; and Justin Shlegel, host of the achieved record company sales of more than $3.5 billion for the 52-week period 98 Rock Morning Show. Three carts of ended December 29, 2018, up 1.2 percent compared to the same period a year groceries were collected during the hunt, ago, while annual comparable store sales increased 0.7 percent. Income from op- and 474 pounds of food was donated to erations rose $7.2 million, or 9.4 percent to $83.6 million compared to $76.4 the Maryland Food Bank. TAKING STOCK continues on page 30

RIGHT: At the Georgetown store in Wash- ington, DC, Washington Redskins tight end Vernon Davis (r), joined here by Safe- way’s Beth Goldberg, competed against Adriana Hopkins and Kidd O’Shea of WJ- LA-TV, filling their shopping baskets with food bank wish list items that were do- nated to the Capital Area Food Bank. SEEKING DISTRIBUTORS The study estimated that the tax caused a 52 percent reduction in to sell our Legislative Line consumption! It is certain that the results of this study will be Natural Items, From page 20 mation, go to www.nationalgeo- used in the continued and of- graphic.org/innovation-chal- ten heated debates over taxing has brought forth a contest that lenges/plastic. Insecticides & Home Cleaning Products seeks public input for solutions soda to improve nutrition and address chronic diseases at- and will pay handsomely for the Nutrition MD • DC • VA • NC • SC most innovative ideas. The Post tributed to the consumption of The American Journal of Pub- sugar. Those opposed to taxing article mentioned that a newly lic Health has published a study launched “Ocean Plastic Inno- soft drinks often cite store sales of the impact of taxes on con- declines and job layoffs. vation Challenge” wants your sumption of sugary drinks. It ideas and you can even earn a studied Berkeley, CA for a three- $500,000 prize and at least $1 Barry Scher is associated with the year period after the city im- public policy firm of Policy Solu- million in investment dollars posed a tax on sweetened drinks for creative solutions. Put your tions LLC and may be reached at and compared that to consump- [email protected]. thinking caps on. You have till tion before the tax was in place. Contact Bruce Sohn, VP • 800-536-3170 • [email protected] June 11 to enter. For more infor-

26 | FOOD WORLD April 2019 www.best-met.com EMD Sales Headquarters In Baltimore Is Home To ‘Bags Of Love’ Packing Day March 15

This Giant Food group shot in- cludes (l-r) Daniel Wolk, Jen- nifer Gonzalez, David Jung, Tanaysha Smith and Omar Molina.

LEFT: Osvaldo Guerrero (l) and Kimberly Hernan- dez (c) of EMD Sales say hello to Jennifer Gonza- lez of Giant Food.

RIGHT: Elda Devarie (2nd from l) of EMD Sales is joined here by Daniel Rivera (l) of Tele- EMD Sales welcomed companies it does business with to mundo 44, Zulema Tije- its Baltimore, MD headquarters to help pack the “Bags of ro of El Tiempo Latino Love” that were donated to low income families from pre- and Nestor Alvarenga (r) dominantly Latin-American neighborhoods throughout the of Telemundo 44. country. Elda Devarie (c) of EMD Sales welcomes Caroline Kuo (l) of Unity Health Care and Beth Goldberg of Safeway Eastern. ssssssssssssssssssssssssssssssssssssssssss PEOPLE

Food Marketing Institute retailers and suppliers. (FMI) ha announced the addition DuPuy was formerly the vice

of Marjorie DePuy, MBA, to its president of industry relations staff. With more than 15 years of and education with the Health- ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ INSIDE TAKING experience in non-profit and as- care Distribution Alliance, where THIS ISSUE STOCK sociation program management, she guided strategy and devel- by Jeff Metzger along with relevant industry ex- oped content for an annual con- Food Six Months Later, Retailers Upset By UNFI’s Poor Execution, Communication “It gets late early here” - Yogi Berra Local Notables Trek To perience, DuPuy comes to FMI ference, educational programs 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 grounded in both supply chain and stakeholder engagement fo- 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 and sustainability issues and will cused on the healthcare supply 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 strengthen FMI’s work in those chain. Most recently, while travel- 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 strategic areas. ing in New Zealand, DuPuy lent 29 “As FMI’s new senior direc- her talents to support EcoFest Former Starbucks Chief Executive To Remain As Co-Chairman Donald To Exit As Albertsons CEO; tor for supply chain and sustain- North, a month-long series of eco PepsiCo’s Sankaran To Lead Chain ability, DePuy brings a hands-on events focused on community-led 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 awareness of both the individual initiatives in sustainable living. 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 challenges and opportunities, DuPuy started her career at the 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- along with the synergy existing Grocery Manufacturers Associa- 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 between supply chain and sus- association’s traditional strengths tion where she designed and pro- 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 tainability issues,” remarked Mark in addition to bringing a new grammed the “Future of Food” 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 Baum, senior vice president for awareness of the reciprocity and Symposium, a groundbreaking 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 industry relations and chief col- interplay between the two key industry event, involving hun- 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 laboration officer for FMI. “Her areas. Her strategic thinking and dreds of industry executives, gov- and president of Safeway’s East- See ALBERTSONS Peak Rock Capital, a mid-market See TURKEY HILL on page 28 on page 23 background in consumer package mission-driven attitude will en- ernment policy officials, research- ern division (1994-1996, prior to private equity firm based in Aus- good companies and her practical hance FMI’s capabilities as these ers, academics, and other critical experience in building collabo- functional roles are becoming in- stakeholders. While at GMA she rative business relationships will creasingly important to the con- also coordinated organizational make her a strong solutions-based sumer and the day-to-day work of strategic planning and served as leader in both of these critical op- the food retailer. As the modern primary liaison to several mem- erational areas for the food retail supply chain becomes more ‘cir- ber committees. DuPuy has a BA community.” cular,’ with the consumer at the in government from Hamilton In her new role with FMI, Du- center, DuPuy will help elevate College and an MBA from Keller Breaking News from New England to the Carolinas Puy will build upon FMI’s key FMI’s ongoing work by creating Graduate School of Management. functional areas of supply chain even more solid, collaborative www.best-met.com and sustainability, amplifying the industry relations between both www.best-met.com April 2019 FOOD WORLD | 27 Vivek Sankaran Is New Albertsons CEO As Jim Donald Moves To Co-Chairman Role From page 1 ability to work with and develop president and chief operating of- people,” said Miller. “I couldn’t be ficer, a position he was named of today’s customer, where, how happier to leave Albertsons Com- to in 2016. Over the last three and when they choose to shop panies in Vivek’s hands.” years, he has led Frito Lay to with us.” In an internal memo from industry-leading growth by re- Continued Donald, “Vivek Donald (published at the end of maining focused on innovation, brings a rare blend of CPG, retail, this story) detailing his depar- technology and execution. Over manufacturing, logistics, technol- ogy, and research and develop- ture, he noted “the industry may his 10 year career at PepsiCo, in ment to Albertsons Companies, think that we’re playing catch up addition to leading Frito-Lay, all of which are key components with eCommerce, ‘Drive Up and Sankaran also served as the chief to being a successful retailer in Go,’ and third-party agreements, commercial officer for PepsiCo an omni channel-driven environ- but when we look at the whole North America, chief customer ment. Moreover, Vivek has the picture, we’re changing the game officer of Frito Lay, and as the se- keen understanding that the front for customers in small, simple nior VP of strategy for PepsiCo. line is directly linked to the bot- ways that I’m confident will add Before joining PepsiCo in 2009, tom line, and I’m confident he will up to our being the company that Sankaran was a partner at McK- inspire and engage our 270,000 Vivek Sankaran Jim Donald everyone wants to catch up to in insey and Company, where he associates across our stores, sup- Carrs – all of these banners and and look forward to working with the next few years. I am excited served various Fortune 100 port offices, manufacturing fa- more in the Albertsons Compa- our associates to realize the op- about our progress and I look companies, bringing a strong fo- forward to what we’ll accomplish. cus on strategy and operations. cilities, and distribution centers.” nies family of stores have hun- portunities and navigate the chal- Our commitment to ‘Making Ev- Sankaran has an MBA from the “It is a great privilege to join dreds of years of combined his- lenges in our evolving industry.” a company that has such deep ery Day a Better Day’ for our peo- University of Michigan, a master’s tory. Our stores are integral to “I’ve known Vivek for many years. roots in American retail,” said ple, customers, community and degree in manufacturing from the Sankaran. “Albertsons, Safeway, the lives of millions of customers He has always impressed me, not company remains our priority.” Georgia Institute of Technology , Osco, Shaw’s, Acme, each week. I’m excited to build only with his exceptional work at Sankaran was named CEO of and a bachelor’s degree in me- Tom Thumb, Randall’s, United on the legacies of past CEOs Bob Frito-Lay in managing the many PepsiCo Foods North Ameri- chanical engineering from the Supermarkets, Market Street, Pa- Miller and Jim Donald who both facets of a multibillion-dollar ca in December 2018. Prior to Indian Institute of Technology in vilions, , Haggen and laid a solid foundation for success food business, but also with his that, he served as the company’s Chennai.

BELOW IS DONALD’S INTERNAL MEMO: for Cerberus Capital Management. Bob Miller, after and advanced analytics to drive business transfor- To: Albertsons Companies Associates 58 years in the industry, has been named chairman mations. Len and his team of senior technologists emeritus and will continue to serve as a member of work closely with Cerberus investment and operat- From: Jim Donald the board of directors. Vivek was named CEO of Pep- ing professionals on targeted initiatives aimed at Subject: Albertsons Companies Appoints siCo Foods North America in December 2018. Prior improving systems and generating value from data. Vivek Sankaran President and CEO to that, he served as the company’s president and I think we can all agree that he will be an invaluable chief operating officer, a position he was named to in add as co-chairman. I’m truly excited to see what Team, 2016. Over the last 3 years, he has led Frito Lay to our company does next. I’ve said it to our division When I joined Albertsons Companies in March of industry-leading growth by remaining focused on in- presidents, our leadership team, and everyone who 2018, there were two paths in front of me waiting to novation, technology and execution. Over his ten-year will listen that, simply put, the small moves we are play out: helping to shepherd the integration of a Rite Aid-Albertsons Companies combination into 2019 career at PepsiCo, in addition to leading Frito-Lay, making are adding up. The industry may think that and beyond or helping further lead our already-solid Vivek also served as the chief commercial officer for we’re playing catch up with eCommerce, Drive Up and company toward the future in both the four wall and PepsiCo North America, chief customer officer of Fri- Go, and third-party agreements, but when we look at no wall environment and tell our story more broadly. to Lay, and as the senior vice president of strategy for the whole picture, we’re changing the game for cus- Just over a year later, we know which path the com- PepsiCo. Before joining PepsiCo in 2009, Vivek was a tomers in small, simple ways that I’m confident will pany took, and as I took on the role of overseeing the partner at McKinsey and Company, where he served add up to our being the company that everyone wants daily operation of our company, I also made finding various Fortune 100 companies bringing a strong fo- to catch up to in the next few years. I am excited my successor a high priority. When you look for a suc- cus on strategy and operations. He co-led the firm’s about our progress and I look forward to what we’ll cessor, you find someone who embraces your vision North American purchasing and supply management accomplish. Our commitment to Making Every Day and then has the capacity to take it to a whole new practice and was on the leadership team of the North a Better Day for our people, customers, community level. This morning, we announced that Vivek San- American retail practice. Vivek has an MBA from the and company remains our priority. With 270,00 tal- karan has been appointed president and chief exec- University of Michigan, a master’s degree in manu- ented associates serving 34 million customers each utive officer of Albertsons Companies, effective April facturing from Georgia Institute of Technology and week across our nearly 2,300 stores and 5.5 mil- 25, 2019. With this change, I’m going to take on the a bachelor’s degree in mechanical engineering from lion customers in our 1,700-plus pharmacies, we’re role of co-chairman of the board. I’ll be serving along- the Indian Institute of Technology in Chennai. My well positioned to serve the evolving food, health and side co-chairman Len Laufer, who was named to our co-chairman Len Laufer leads Cerberus Technology wellness needs of today’s customer in our four wall/ board of directors last fall and is a senior managing Solutions, a subsidiary of Cerberus that is focused no wall company. Thank you for all you do every day director and head of transformation and technology exclusively on leveraging emerging technology, data, to help our teams run great stores.

www.best-met.com food news you can use

28 | FOOD WORLD April 2019 www.best-met.com Mid-Atlantic Chapter Of Network Of Executive Women Hosts Regional Connect Event At Olney Winery

The Mid-Atlantic Chapter of the Network of Executive Women held a Regional Con- Enjoying the evening are (l-r) nect event last month at the Jerrica Langlais, Alicia Bell, Olney Winery Tasting Room in Stephanie Maxwell-Ridore, Olney, MD. Mark Tarzwell (c) Alyssa Geddes and Lucy of Mrs. T’s is joined here by Madert, all with Safeway Christine Collins (l) of Burris Eastern. Retail Logistics and Phyllis- ann Fobian of GlaxoSmith- Kline.

Santina Sergi (l) and Jessica Page of Safeway Eastern were Giant Food’s Lelia Tannous (l) poses for a photo with Jerry These smiles belong to Kelly Berrie (l) of Plangenuity and both in attendance. Chadwick of My Fresh Solutions. Robin Moran of Giant Food.

Daymon Interactions is well represented at the NEW outing These Giant Food folks are Arleen White (l), Sam Sweeley Billye Pounds (l) and John Mink, both with Giant Food, are by Angela Hopkinson (l) and Jazmin Herrera. (c) and Ann Sembly. on hand at the Olney Winery for last month’s NEW event.

Here we have (l-r) Rayma Alexander, Giant Food; Karen Fer- This Procter & Gamble trio features Terra Wynter (l), Carla Enjoying the fun at the recent NEW event are Giant Food’s nandez, Food World; Robin Moran, Felis Andrade and Liz Kopyta (c) and Mariah Stanforth. Taryn Weaver (l) and Liz Willey. Willey, Giant Food.

This group shot includes (l-r) Christine Collins, Burris Retail This photo features Giant Food’s Suzette Stevenson (l) and Lindley Bucci (l) of Radio One says hello to Maryanne Mc- Logistics; Anne Golding and Kate Kowalzik, Robin Anderson Brenda Jones. Tighe Bass of GlaxoSmithKline. and Monica Simmons-Dolce, Giant Food. www.best-met.com April 2019 FOOD WORLD | 29 ssssssssssssssssssssssssssssss TAKING STOCK From page 26 million for the same period in 2017. The Sunbury, PA-based merchant’s annu- RATES: Open Rate $46.20/inch3 Consecutive Issues $44.45/inch al and fourth quarter net income comparisons were impacted by the federal Contract rates available. Call for details. 410-730-5103 government’s implementation of the Tax Cuts and Jobs Act (tax reform) in Classifieds 2017. Weis said it realized a $49.3 million decrease in its deferred income tax due to this legislation, which improved net income in both its 2017 and fourth Help Wanted, Positions Wanted, Real Estate, Business Services, etc. in the Mid-Atlantic. A service of Best-Met Publishing Company quarter results. The current annual results contain no such benefit. Annual net income totaled $62.7 million (-36.3 percent) compared to $98.4 million in 2017. Annual earnings per share totaled $2.33 compared to $3.66 per share in 2017. “We made significant forward progress in 2018 by driving sales, in- vesting in our store base and information technology and by improving store-level efficiencies,” said Weis Markets chairman and CEO Jonathan Weis. “The result was a 9.4 percent increase in annual operating income and in- creased comparable store sales in 2018. During the year, we also expanded online ordering with in-store pickup and home delivery to 173 stores which resulted in more than 100,000 orders and a 33.2 percent increase in online sales.” During the 13-week period, the closely-controlled regional chain’s sales increased 1.0 percent to $892.9 million compared to the same period in 2017, while fourth quarter comparable store sales increased 0.9 percent. In- come from operations in the fourth quarter totaled $17.2 million compared to $22.3 million in the same period in 2017 and Weis’ Q4 net income declined ROUTES AVAILABLE 79.2 percent to $13.2 million compared to $63.7 million in 2017, while earn- ings per share totaled $0.49 compared to $2.37 per share for the same peri- SEEKING INDEPENDENT DISTRIBUTORS od in 2017…another company that competes with all three retailers in Central PA – – has filed to launch an IPO. The Emeryville, CA based For Direct Store Delivery to Grocery Stores discounter operates 20 stores in the Keystone State and operates more than 300 units in all (mostly on the West Coast) with sales of more than $2 billion. Routes Available in: Boston, MA • Albany, NY • Northern VA • Maryland Founded in 1946, the former family-owned merchant was first acquired by Call Paulo Lopez 301-573-9683 Berkshire Partners and then sold to another PE firm Hellman & Friedman in 2014. Most of its stores are owned by independent licensees…Whole Foods has reduced prices on more than 500 items and parent company Amazon has expanded grocery deals for its Prime members as part of the discount pro- gram. Many of the items are in produce and meat, but after the last round of cuts, I’m skeptical since the price reductions were more flash than substance. And in our price checking research over the past year, nobody has raised pric- es more than WFM has (although to be fair, with inflation, virtually all retailers No Puppies. have raised their everyday retails). We’ll get out our comparative price book and let you know if this round of reductions is actually more filling and taste No celebrity gossip. No selfies. No recipes. great. And if Amazon has big plans for any form of bricks and mortar retailing, they might have to rethink their plans about entering City of Philadelphia and the state of New Jersey, which officially banned cashless stores within their jurisdictions…if you’re wondering why the hype over meal kits has waned sig- nificantly, all you need to know are a few recent tidbits. First, Albertsons recent- ly announced that it is cutting the number of stores where its Plated meal kits are available and will now only be marketing them in select stores. Albertsons acquired Plated 18 months ago and in the past few months both co-founders GRANDMA’S TM “It’s so good, it’s registered!” We only tweet about the important stuff.

Maryland deli Foods Co. Breaking news covering the industry from New England to the Carolinas. The home of Grandma’s oven roasted Turkey Breast Follow us on Twitter @FoodWorldFTN extra sharp Cheddar Cheese and Thumann’s Fine deli Products sTore door delivery 410-682-3354

30 | FOOD WORLD April 2019 www.best-met.com ssssssssssssssssssssssssssssss TAKING STOCK Are You Reaching Your Food & Drug Customers have left the supermarket chain. And Blue Apron, which helped fan the meal kit mania by going public nearly two years ago, has another new CEO, Linda In This $200 Billion Kozlowski, after former chief executive Bradley Dickerson resigned early this month. Blue Apron, which fizzled from the outset, was trading at a whopping $1.04 per share at the close of business on April 3…part of virtually every Marketing Area? discussion I have with retailers about the current state of their businesses seems to focus on how the overstoring glut isn’t shrinking. Now comes word Out of Region Companies Receiving from JLL’s Grocery Tracker that new food store openings (all formats) increased FOOD WORLD & FOOD TRADE NEWS: nearly 30 percent last year with more than 17 million square feet in retail space added nationally…Ocado, the British e-commerce distribution company Ahold Delhaize, Amsterdam, The Netherlands that has aligned itself with Kroger in the U.S. and Sobey’s in Canada, will es- tablish its first American office in Washington, DC. While it searches for a per- Albertsons Companies, Boise, ID manent residence in the District, it will operate out of temporary digs in Tysons Aldi, Batavia, IL Corner, VA beginning later this month…just when you thought we were heading Amazon, Seattle, WA for quiet period for the “Slow” Eddie Lampert watch, the former and (weirdly) Costco, Issaquah, WA current CEO of Sears Holdings has been accused of “lifting” $57.5 million from several Sears bank accounts in the final days before Lampert closed his $5.2 Kroger, Cincinnati, OH billion deal to create a new and significantly downsized organization still under Sam’s Club, Bentonville, AR the control of another Lampert company – Transform Holdings. Creditors are Save-A-Lot, Earth City, MO fuming over this and U.S. Bankruptcy Judge Robert Drain strongly advised the Sprouts, Phoenix, AZ worst retailer of his generation to return the funds. An April 18 hearing will settle the matter. Additionally, Sears has confirmed it will open new smaller Supervalu, Eden Prairie, MN specialty format stores that will focus on home goods (like appliances, tools Target, Minneapolis, MN and mattresses - no apparel) called Sears Home & Life (not to be confused Trader Joe’s, Monrovia, CA with House of Death). The first three stores will open in late May in the mer- Wal-Mart, Bentonville, AR chandising hot spots of Lafayette, LA; Overland Park, KS; and Anchorage, AK.… we have a several obituaries to report this month including the passing of Walgreens, Deerfi eld, IL Kelly Tobin, daughter of Bob and Audrey Tobin. Bob is the former CEO of Ahold Whole Foods, Austin, TX USA and one of the finest people to ever serve the grocery industry. I’m very 7-Eleven, Dallas, TX sorry for their loss...two music industry unsung greats have also left us. Hal Blaine, the literal foundation of the LA session stable of musicians known as The Wrecking Crew, was 90 when he died last month. Simply said, Blaine was one of the greatest drummers in pop and rock history, playing on 35,000 re- cords (that’s not a typo) mainly in the 60s and 70s (including 40 number one hits and 150 top 10 songs). He was closely associated with Beach Boys lead- er Brian Wilson - listen to his subtle work on the song “Good Vibrations” – and was a vital part of that group’s success in the 1960s. And here’s a piece of trivia that will never be equaled. Blaine was the only drummer to ever back Elvis Presley, Frank Sinatra and John Lennon. Dick Dale, the guitar player who pioneered surf music in the early 1960s, has died at the age of 81. Armed with a Fender Stratocaster and an array of customized amps and speakers, Dale perfected a sound that had peaked by the mid-60s, but saw a resurgence 30 years later after Quentin Tarantino used Dale’s version of “Misirlou” in the opening credits of his iconic film - “Pulp Fiction (1994).” Despite many health problems, Dale continued to tour until early this year…Clem Daniels, 83, has also passed. Now you have to go back, way back in the sports annals to re- member Daniels. But if you’re a football fan over the age of 60, you might re- member the Prairie View A&M alum as an excellent running back for the Oak- land Raiders dynasty teams of the old American Football League. And if you dug a little deeper, you’d find that Daniels was a four-time Pro Bowl selection who played seven seasons for the Raiders (1961-1967, which included an AFL championship in ’67). And before the 1970 AFL-NFL merger, Clem Daniels held a record which will never be broken, most career rushing yards – 5,103 – in the history of the AFL…hard to believe that my friend Andy Klein is dead. Klein, 65, president and CEO of nine-store Klein’s ShopRite group, was tragi- cally killed last month when a ShopRite truck driver, on the way to make a delivery at one of Klein’s stores in Bel Air, MD, lost control of the vehicle and collided with 12 other cars, including Klein’s. Klein’s car was pinned under the truck, which caught fire. A seven-year old boy was also killed. This is a real tragedy for the Klein family who have been in the food retailing business in Harford County since 1925. I’ve known the family for more than 40 years, in- cluding Andy’s late parents Ralph and Shirley Klein and his brothers, Howard and Michael. Andy Klein also leaves his wonderful wife Jayne and three great children Marshall, Rachel and Sarah. Fourth generation siblings Marshall and Sarah remain active in the business. A man with a big heart with a great sense of family and community, I’ll miss Andy Klein. FOR MORE INFORMATION, VISIT US AT WWW.BEST-MET.COM

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