Bake Locall , Wante Everywher
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▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲ ▲▲ ▲ ▲ ▲ ▲ ▲ ▲ INSIDE ▲ TAKING THIS ISSUE STOCK by Jeff Metzger Food Trade Amazon Pulls Plug On NYC HQ2 Plan; Volume Dips At Brick & Mortar Units Northeast Retailers Less than a week after The Washington Post and New York Times pub- Flock To FMI Midwinter lished sourced stories that Amazon was reconsidering its decision to build At Trump Doral Resort part of its new secondary headquarters (HQ2) in New York City, the Seat- 32 tle-based e-commerce distribution, retail and analytics firm confirmed that speculation. The reason: according to the company it was opposition from politicians. “While polls show that 70 percent of New Yorkers support our plans and investment, a number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of rela- ASG Retailer Summit A PUBLICATION OF BEST-MET PUBLISHING, INC. tionships that are required to go forward with the project we and many others Draws Managers, Owners To Elmhurst, NY NVol. 75 No. 2 ewsFROZEN FOODS ISSUE February 2019 See TAKING STOCK on page 6 37 17 Net New Stores Added In Fiscal Year Key Food Volume Keeps Rising; Co-Op Unveils Bold Growth Plan More than 900 suppliers, bro- ing by providing a recap of Key the importance of top-line reve- kers and distributors made their Food’s performance over the past nue growth as the major compo- way to the Hilton Garden Inn on 12 months. The 82-year old com- nent to offset increasing salaries Staten Island to attend Key Food’s pany currently services 141 store (New York City’s minimum wage annual vendor summit. Led by owners who operate 274 units increased to $15 an hour late last THE MID-ATLANTIC FOOD TRADE ORGANIZATION (MAFTO) HELD ITS CEO Dean Janeway and chief op- in the Tri-State area. During the year) and the rising cost of goods. winter retailer dinner earlier this month at the Radisson Hotel Philadel- erating officer George Knobloch past year, Key Food added 17 new Janeway provided updates on phia Northeast with special guests the retailers of the Retail Marketing the audience heard a detailed two stores to its base and its net oper- industry changes focusing pri- Group (RMG). The evening’s speaker was Mike Rothwell (2nd from r) of hour-and-thirty minute presenta- ating profit increased 8.64 percent marily on those that will impact Pennington Quality Market, who is joined here by his wife Judy (r) as well as Barbara Rothwell Henderson (l) and Charlie Henderson, of Penning- tion filled with facts, candor and (3.92 percent of sales). Knobloch the Metro New York market. He ton Quality Market. More photos are on page 34. sometimes biting humor as the noted that for the 52-week peri- expressed concern about the long- Staten Island-based co-op ad- od ended January 17, 2019, total term stability of UNFI, following dressed the year in review, future retail sales jumped 11.5 percent. last year’s acquisition of Superva- 49,000 Sq. Ft. Unit Set To Debut In Spring corporate initiatives, a Metro New To date (the company’s fiscal lu, noting the huge debt inherit- York market recap and its new year ends in April), same store ed by UNFI and its plummeting Pathmark Banner To Return As market expansion into Florida. sales have increased 1.9 percent. stock price (currently trading at Knobloch opened the meet- During the past year, Key Food $14.15 per share, a big decline Allegiance/PSK To Open In Bklyn engaged Instacart to provide gro- from its 52-week high of $49.40 The Pathmark banner is set to innovative supermarket chains cery delivery. There are currently per share). He also questioned return to New York later this year in the Northeast from the 1970s 115 stores utilizing that service whether the company’s three-year when a 49,000 square foot store through the early 2000s, exit- which contributed $8.5 million synergy savings of $175 million currently under construction in ed the landscape in 2015, victim in additional revenue. The veter- See KEY FOOD Brooklyn opens its doors. Path- See PATHMARK an industry executive emphasized on page 44 mark, which was one of the most on page 40 Bake Locall, Wante Everywher Available For Your Stores Now! Contact 866.498.2253 Krasdale’s Dennis Hickey To Add Oversight Of Day-To-Day Operations In Florida To Duties Krasdale Foods has announced tomers in the New York area and dale’s Florida operation has pects to open several more loca- that Dennis Hickey, chief mer- throughout the Northeast. achieved steady and organic tions this year. chandising officer, is now running “Dennis has been instrumental growth. The company first en- “I’m grateful to have the oppor- day-to-day operations in Florida, in supporting Krasdale’s growth tered the marketplace after sev- tunity to build on the tremendous managing both merchandising and success in recent years,” said eral of its existing Northeastern success we’ve had in this growing for the area’s Bravo stores and Steve Silver, Krasdale’s president customers relocated and decided market,” Hickey said. “Florida is Krasdale’s Beta II marketing of- and COO. “With this new man- to open stores in Florida. Today, really a unique business environ- fice, located in Miami. date, we’re confident that Dennis Krasdale has a fully staffed office ment, and I look forward to de- Hickey, who joined the compa- will enhance the Bravo Flori- with both merchandising and re- ploying new resources, working ny seven years ago, will add the da operation while also helping tail experts who, in combination with store owners to customize Florida operation to his ongoing to create greater cohesiveness with employees headquartered in their merchandising and mar- responsibilities, which include among Krasdale’s various divi- New York, manage operations for keting programs to best fit their managing procurement and mer- sions and regions.” more than 50 stores throughout needs.” chandising for Krasdale’s cus- Over the past 15 years, Kras- the state. The company said it ex- White Plains, NY based Kras- dale Foods is a 110-year-old, pri- vately owned company providing grocery distribution, merchandis- ing, and marketing to indepen- dent grocery store owners. The company provides its customers with the ability to pick and choose the items that are right for their customers and communities. In Florida the company plans to en- hance product assortment with a focus on country of origin prod- ucts. Who knows? Is your next event listed in the Mid-Atlantic food market’s number one calendar of events? Let us know, we’ll let our readers know. We’ll publish your spe- cial event listing in the Trade Cal- endar of Events. Contact Terri Maloney, Editor 410-730-5013 or tmaloney@best-met. com 2 | FOOD TRADE NEWS February 2019 www.best-met.com F Ev BIG EVENT! ✹ 51% of shoppers said they would ✹ Utz® Hoops Mix™ sales increased purchase Utz® Cotton Tails™ in addition 26% in 2018 vs 2017.** to their regular household snacks.* Leverage the growing popularity of themed events for year over year growth! Utz® Quality Foods, LLC Follow us online! 900 High Street, Hanover, PA 17331 1-800-FOR-SNAX utzsnacks.com @UtzSnacks @UtzSnacks * Source: Mintel Purchase Intelligence ** Source: IRI Total US – Multi Outlet + C Latest 52 weeks ending 11-04-18 www.best-met.com February 2019 FOOD TRADE NEWS | 3 storefront was filled with flowers, self and mobile checkout, with 12 be interesting to see what tweaks The company feels strongly about cards and Valentine items. In the cashier stations in total. Nine are will be made to accommodate the helping their neighbors in need: produce chef area, fresh strawber- self-checkout, two are staffed for finicky college crowd. “Kind words can be short and ries were being hand dipped in wine and beer as is required by Hunger is an issue 365 days easy to speak but their echoes chocolate in full view of shoppers. Pennsylvania state law and then a year for people in every zip are truly endless” - Mother Tere- The store blends modern innova- there is one that’s “just in case.” code in the USA. There’s already sa. Kudos to the Levin family for tion and community focus, while So, what’s the down side? The not enough access to food for helping out! delivering quality products and store carries three private brands: the more than 700,000 people Michael Rothwell, president great food to its neighbors. Local Taste of Inspirations (upscale), in the Delaware Valley who are of Pennington Market, made an vendor partnerships are center Nature’s Promise (organic and hungry, including kids, seniors, impassioned speech to more than stage at the new store where pas- natural) and the dreaded “fruit the working class and military 100 food industry members for sionate Philadelphia-area food bowl” with no name. Each of veterans. The government shut- the future of the independent re- Soup manufacturers such as High Street these brands is more than well down impacted 45,000 people in tailer in our market at the Mid-At- to Nutz on Market, Isgro Pastries, One represented in Giant Heirloom the area who struggled to feed lantic Food Trade Organization’s By Maria Maggio Village Coffee, Sarcone’s Bakery, Market’s center store…to a fault. their families. During the 35-day (MAFTO) winter retailer dinner Claudio Specialty Foods, Cento There are many multiple facings shutdown Philabundance, Share on February 7, held at the Radis- Fine Foods as well as Philly-based of these SKUs in some categories Food Program, Nutritional De- As we go to press, MLB pitch- son Northeast Philadelphia.