FOOD & BEVERAGE REPORT

An official news publication of the Associated Food Dealers of Michigan and its affiliate, Package Liquor Dealers Association.

VOLUME ONE. NUMBER THREE MAY 1990

INSIDE Annual AFD Creative marketing Have "dogs" taking up space on your Trade Show beverage shelves? Don't know what items to stock? By using creative marketing you can entice buyers and was success improve your beverage sales. See page 6 The Associated Food Dealer’s Annual Trade Show, held March 27, at Fairlane Manor. Dearborn, was a great Distributor profile success, according to those attending. This distributing company has a The show, themed “Profit for the unique perspective on retailers. '90s." offered retailers an opportunity to James McColgan of M & B see new products and services in the Distributing Company uses his food and beverage industry. experience as a retailer to relate to Retailers from all over the state his customers. enjoyed the displays, taste-testing, prize See page 8 giveaways, and discount buying available to them at this year's show. "I drove all the way from Douglas Cherries are just one of the many foods grown in Michigan. Legislator profile to attend the show." said Tony Herell. Rep. Paul Wartner has gone from of Little Stores II "It was the best show bootstraps to the ballot box The we’ve been to." representative is one of the Michigan Week More than 75 companies exhibited strongest supporters of small their wares Those attending enjoyed business in Lansing May 18-26 is great time to encourage customers delicious food and beverages and had See page 10 the chance to learn about the latest to sample the many products this state has to offer equipment in the industry. ay 18-26 has been designated average of 107,000 pounds of food "We enjoyed the opportunity to Michigan Week to focus attention and creates jobs for more than five interact with our partners in sale and Don't get burned M on all the wonderful things the non-farm workers who process, profit," said Dave Kirkpatrick, of Coca- Know the limitations of your fire state has to offer. transport and merchandise the crops Cola Bottlers. "We introduced our new insurance policy Not knowing if you Michigan is known for lakes and the as well as produce farm items. Caffeine Free Classic Coke, and it was have adequate coverage can leave beautiful variety of its seasons, but the Many beverages are also the most successful new product you unprotected in some instances. fact that it's a national treasure for food produced in Michigan. Beer brewing introduction since Diet Coke." See page 15 and beverage products is overlooked. and winemaking have been Michigan AFD sponsors a trade show every The state is ideally located in the industries for many years. By 1980. spring Participating in the show is a Temperate Zone and is nourished by the when the first national winegrowing fantastic way to introduce new products fresh water of the Great Lakes and fertile census was taken. Michigan had and maintain market awareness. SDD/SDM 11 soil. More varieties of fruits and more than 2.000 acres under vine and ‘ .. our objective in participating in PEOPLE 16 vegetables are produced in Michigan than was producing more than 25,000 the AFD show was to show support of LEGAL BRIEFS 16 in any state except California. cases of wine. The state is also the independent retailer and address any PRODUCTS 17 With the help of modem technology, known for its specially brewed beers needs or concerns they may have." said DEPT. OF AGRICULTURE 18 each Michigan farmer is able to produce In honor of Michigan Week, Pat Leahy. of Prince "We're looking LOTTERY 18 enough food to feed himself and 78 other encourage your customers to sample forward to next year ." LIQUOR VIOLATIONS 22 people One farm worker produces an Michigan products. • Photo feature, see pages 12, 13

What recyclables retailers collect 84 percent of wholesalers and large retailers collect recyclables at distribution centers They collect a wide variety of recyclables from their communities as well as their own operations What do they collect?

Cardboard 98%

Aluminum cans 23% .

S hrink w rap 16%

P lastics 13%

G l a s s 9 %

Source FMI Solid Waste Survey October 1989 CAMPBELL SALES CO. 32000 Northwestern Highway — Suite 190 Farmington Hills, Ml 48018 — (313) 855-1750

2 — FOOD & BEVERAGE REPORT, MAY 1990 Since 1883, our goal at Oscar Mayer has been to provide you with new and profitable ways to meet your customers’ needs Thanks to you. our retailers. Lunchables Lunch Combinations is fast becoming the most successful Oscar Mayer new product in the last five years! Look for Oscar Mayer to continue to provide you with innovative products in 1990 and beyond! Lunchablcs Lunch Will N ever Be T he Same." Michigan law and penalties for stocking obscene materials

Freedom of speech, expression, of not more than $100,000 or both. communication, privacy and A person is guilty of obscenity in association are protected by the First Pornography is difficult to define the second degree when the person Amendment to the United States markets obscene material and is subject Constitution. Over the years, the U.S. to a punishment of imprisonment for The explosion of video rentals currently studying a revision to the Supreme Court has defined what is not more than one year, or a fine of not on the marketplace has brought the obscenity statute which would allow protected and what is outside the more than $5,000 or both. problem of pornography into each community the right to define, protection of the Constitution. This A wholesale seller shall not, as a grocery and party stores. by its own community standards, article is not meant to be a description condition to a sale, or consignment to a The purpose of this article is to what is and what is not of the precise lines drawn by the Court retailer require or demand that the caution you that the sale or rental of pornography. However, every time a but, rather, a generalized discussion of retailer receive for resale or further X-rated videos, books, magazines, state legislature attempts to redefine the limits reflected by recent Michigan commercial distribution any obscene may put you, and your store’s pornography or whenever a court law. material. licenses, in the middle of this battle. interprets a pornography statute, Nearly all forms of expression and Nor shall a franchiser penalize or It may be time to rethink whether years of litigation follow. communication are allowed by law. but threaten to deny or revoke a franchise the limited profit in adult videos The cost is enormous. And a few types of communication arc because of the failure or refusal to and magazines is worth the risk. often, when the litigation ends, the prohibited. Some types of accept obscene materials. A person who Raymond Walsh, a member of issue is even more clouded than communication are prohibited violates this section is guilty of a the Wayne County Prosecutor's when it began. depending upon the time, place and misdemeanor. Office has provided an article which While the food and beverage manner of the expression or “Knowledge of content and attempts to describe and define the industry is entitled to First communication. For example, a character” means having reason to Michigan statute. Amendment protection and the manufacturer should not falsely label know, or a belief which warrants For decades, the courts, state AFD supports those constitutional his merchandise; nor should a customer further inquiry, of the nature and legislatures and the public at large rights, the problem is that neither issue a forged, altered, not-sufficient- character of the material involved. have been attempting to distinguish the courts nor the legislatures have funds or counterfeit check. A person has such knowledge when between what communication is yet been able to determine clearly Of course, in the privacy of one's he or she knows that the material protected under the First and unequivocally where First home, one may alter or switch the depicts or describes sexual conduct Amendment to the Constitution and Amendment rights end and labels on packages, cans, etc., as he or whether or not such person has precise what is defined as pornography. pornography begins. she wishes. And, one may write knowledge of the specific contents of The Michigan Legislature is millions of dollars in NSF checks in the the material. privacy of your home and not violate How is one to tell what is obscene any law, so long as the checks arc not • The average individual, applying "Prurient interest” means a shameful and what is not? “passed.” Thus, “unsafe or illegal” contemporary community standards, or morbid interest in nudity, sex, etc. If the material shows or describes sometimes depends upon where, when would find that the material taken as a “Sexual conduct" means sexual organs or conduct which is not or how an idea is communicated, e.g. whole, appeals to the prurient interest. representations or descriptions of within customary limits of candid and taking a bath in your home as opposed • The material taken as a whole, lacks sexual acts, normal or perverted, actual decent communications, then it to bathing on the front lawn, yelling serious literary, artistic, political or or simulated, etc. probably is obscene. “fire” in a crowded movie theater scientific value. A person is guilty of obscenity in If this communication is not a as opposed to an empty theater, etc • The material depicts or describes, in a the first degree when the person commonly decent form of candid Michigan law prohibits the patently offensive way, sexual conduct. markets obscene material as a expression among people, then marketing of obscene materials. “Contemporary community predominant and regular part of carefully reread the definitions in this “Obscene” means any material which standards” means the customary limits business and is subject to imprisonment article because it is probably obscene. meets all of the following criteria: of candor and decency. for not more than one year or by a fine

Most popular 'light' foods Many Americans are finding 'light' to their liking and beverages: For most Americans, “light” or September 1989. they also understand 'light' can have Light Percent “lite” foods and beverages are now Staying in better overall health was other meanings. Indeed, the majority of Product Who Purchase staples of leaner, healthier eating, mentioned most among light product people agree that ‘light’ can and should according to a recent national survey consumers (86%) as a reason to be used in different contexts, as long as Beverages 70% conducted for the Calorie Control consume light foods and beverages. it is clearly explained,” he added. Controlling calories (85%) and fat Council. Nearly three-fourths of those aware Cheese, yogurt, Currently, two out of every three (83%) are also major reasons for use. of light foods and beverages said they sour cream, and adult Americans consume “light” The most popular light products, knew that “light” is used to refer to a other dairy products 65% products, an average of nearly four according to the survey, are light variety of product qualities such as times each week, the survey found. beverages (consumed by 70%), light lower in calories, fat, cholesterol or Ice cream and Light foods and beverages are equally cheese, yogurt and sour cream (65%), sodium or lighter in texture, color, taste, other frozen desserts 46% popular among men (66% are light and light ice cream and frozen desserts or weight. consumers) and women (67%). (46%). The vast majority (67%) of light Cakes, breads "The tremendous popularity of light The survey revealed that most product consumers agreed that using and other baked goods 40% foods and beverages and the growing people understand that “light” can refer the term "light" to refer to different number of light product choices clearly to a variety of product qualities, product qualities is appropriate, as long Chips and other points to the '90s as the 'light decade,’ " depending on the product. When people as "light" is clearly explained. A snack food 38% said Robert Gelardi, executive director aware of light foods and beverages smaller precentage (54%) said the were asked to define "light," 69% said of the Council. term's meaning should be limited to Dinner entrees 32% The Gallup Organization conducted lower in calories on the first response. calorie, fat or sodium reduction. the survey for the Council. The findings “Today’s consumers are The Calorie Control Council is an are based on a nationally projectable sophisticated about these products,” international association of Source: Calorie Control Council 1989 national sample of 1,035 people age 18 and said Gelardi. “Though most people manufacturers of low-calorie and diet survey conducted by the Gallup Organization. over, who were interviewed in associate the term with lower calories, foods and beverages.

4 — FOOD & BEVERAGE REPORT, MAY 1990 EXECUTIVE D RT Statement of ownership The Food & Beverage Report (USPS 082-970; ISSN 0894-3567) is We must work together to meet our goals for the future published monthly by the Associated program and legislative activity have Food Dealers at 18470 W. 10 Mile, By Joseph D. Sarafa Southfield, Ml 48075. Subscription Executive Director, AFD earned AFD the title of “watchdog for "I cannot, you cannot, we price for one year is $3 for For the past three and a half years I the food and beverage industry in members, $6 for non-members. have had the privilege and honor of Michigan." cannot maintain the status Material contained with The Food & serving the Associated Food Dealers as Obviously, one person alone could Beverage Report may not be executive director. While it is often not have accomplished all of this. We quo. To do so would bring reproduced without written permission from the AFD Second owe a deep debt of gratitude to the very time- about the almost certain Class postage paid at Southfield, consuming. it is also dedicated staff who works so closely Mighigan. very rewarding 1 with me. And. I owe a special heartfelt demise of large segments of POSTMASTER: Send address take great pride in thanks to the Board of Directors who changes to Food & Beverage the leadership and give so generously of their time, energy, our industry.'' Report, 18470 W 10 Mile, ideas, and their money. Southfield, Ml 48075. service AFD has ADVERTISERS: For information on provided to so many I could never thank them enough for advertising rates and data, call AFD, Our long-range getting AFD where it is today. But now team, we can meet the challenges and Debbie Cooper, 18470 W. 10 Mile, planning committee we are four months into the last decade take advantage of the opportunities. Southfield. Ml 48075. (313) 557- has given us a of the 20th century. There are only I was bom and raised in the food 9600 AFD works closely with the following Sarafa direction for the about 3.530 shopping days left until the industry. And I remember how it used associations future. Sound year 2000. Where will the food industry to be. But “used to be” is no longer financial management will allow AFD be at the dawn of the 20th century? No good enough. We must get better. Labor to continue to be a strong and viable one knows for sure, but one thing is shortages, food safety and N ACS National Association organization. Our continued absolutely certain. I cannot, you cannot, environmental concerns like solid waste FOOD MARKETING INSTITUTE membership growth makes AFD the we cannot maintain the status quo. To are the challenges. Technology, voice of the food and beverage industry do so would bring about the almost education and cooperation arc the in Michigan. certain demise of large segments of our solutions. The food industry is not a Our member services are a source of industry. part of the problem We are a very pride for all of us. From liquor liability We can no longer be reactive. We important pan of the solution. The food to Visa and Mastercard, from trade must be proactive. We can no longer be industry is one of the nation's biggest shows to college scholarships, we offer fractioned; we must be indivisible. In employers, one the biggest taxpayers programs you want and need to unity, there is strength. There are many and one of the biggest providers. We improve your bottom line Our new challenges in the 1990s. but there are will change. We will lead and grow and

publication, our public relations many opportunities. If we work as a prosper and we will do it together Fo o d Industry A ssociation Executives

America’s Favorite Smoked Sausage Both Regular & Lite Varieties

Your Meat Supplier Has Details on Programs and Items Available or Call (313) 778-FARM for Information

FOOD & BEVERAGE REPORT MAY 1990 - 5 Creative marketing of retail beverages can boost sales Tom Forkin. is a management and • Use dated price stickers to help with can be exciting and mean added profit with a wide range of beverage products, marketing consultant, and owner of Retail rotation. to your business. Try to look at them as including low- and no-alcohol Consulting Services, specializing in food a positive way to increase sales and to beverages. Many retailers consider it and beverage store operations He has Products meet your customers’ new tastes. just completed a book, Retail Beverage socially responsible to make alcohol- Merchandising: Guide to Increasing Sales Tthere are new products coming out Non-alcoholic section free beverages available to their and Profits, which will be published in the every month. They are introduced in customers. next few months. The following is an response to consumer demand or to Set up a small section somewhere in excerpt from the book. How to get rid of 'dogs’ stimulate added sales in a likely area. your store exclusively for non-alcoholic Inventory suggestions New products mean extra investment, beers, wines and champagnes. Offer a Try to be creative in getting rid of but it's hard to do business without selection consisting of both cans and your “dogs.” Apply the same The selection, variety, and depth of them. bottles of domestic and imported beers merchandising techniques you use for your inventory is very important to Evaluate new products carefully. and wines in all price ranges. Break up fast-selling products. One way is to your sales and profits. Low inventory Try them yourself and with your family some of the six packs, and offer the cross-merchandise the “dog” with a levels and out-of-stock situations can Let your employees sample them. consumer the option of a single can or related product. hurt your business significantly. Your Assess their reactions. Find out how bottle purchase as a trial size. For example, one retailer was selection should be a balance between much and what kind of advertising and Put a large sign above the section overloaded with green Creme de what your customer wants and what merchandising support will be given. boldly proclaiming this area as a non­ Menthe 500mls. Realizing that this item you can afford to offer them in terms of Also, inquire about distribution and alcoholic section. Announce this new was not a particularly fast mover, he space and cash flow. future supply conditions. You can now department in your advertising and in­ cleverly decided to put some Creme de One inventory concept I have make a well-informed decision about store promotions. Menthe on top of the ice cream cooler always used is called “sticking with the the new product. If your instincts tell You may legally sample some non­ with a sign suggesting that his winners.” This means that you should you that this new item is going to be a alcoholic products in your store, so why customers try something new: “Ice always emphasize products that are hit, buy big and promote it heavily. If not run a particular brand on special Cream and Creme de Menthe, A proven good sellers. You can't lose you’re not too confident but you feel one weekend with a big display and Delicious, Minty Combination.” The when you promote industry and this new product might sell, buy just a free taste samplings. Make sure you sales effect was so spectacular that he category leaders. The brands that sell case or two and carefully monitor its check with the LCC before you actually now keeps some bottles on top of his the best are usually supported with early sales, and then react accordingly. sample these products to protect ice cream cooler year round. excellent POS materials and are Make sure you give every new yourself. You’d be amazed how Another way to get rid of “dogs” is nationally advertised. product you buy a good, honest chance unaware most consumers are about the to include them in gift sets or baskets. You should also carry and promote to sell. Don’t hide new products on the great taste of some non-alcoholic and Put a special “dog” section right by the other items that have good price/value bottom shelf or in the comer. Put them low-alcoholic draft beer is also now checkout area or on a shelf right behind ratios, are new products, or have where your customers will discover available. Maintain a selection of these the cash register with a sign promoting attractive packaging. them. You might want to create a products in your cold box, too. You this “Clearance” center. Promotion special section near the checkout just may also want to set up a small section Inform your clerks of the items you for new items. Put up signs highlighting of all the low-alcohol products want to delete from your inventory. Rotation of beverage alcohol is a the area. currently available. Write up a clearance list and have them must for any store owner who cares Have your clerks inform your America is entering an era of new suggest these items to customers. about the complete satisfaction of his customers of new products that are wave beverage consumption. Fill a dump display or floor rack customers. Consumers expect the taste arriving soon. Remember, your Influenced by the increasing interest in with your clearance items and price of a product to be the same everywhere competitors will also be offered these health and physical fitness, new them for multiple-bottle selling, such as they purchase that product and every same new products, so keep abreast of lifestyles, and the impact of DWI 3 for $5. time they drink that beverage. their selection decisions. New products publicity, consumers are experimenting A customer purchasing a product from your store which turns out to be bad can severely and instantly damage your long-standing reputation as a retailer of quality merchandise. If a customer does come back with a problem, handle the situation with extreme care and remedy the cause of the occurrence immediately. Create a written system of handling customer dissatisfaction situations, and make sure you quickly inform your supplier about the bad products and try to get an exchange or a credit on your account. Also, include in your employee training the importance of proper rotation, and teach your staff how to spot bad bottles of wine. Here are some other rotation tips to help make sure your products are always at their freshest: • Keep all stacks of beer rotated with each delivery and learn to read the pull dates on beer packages from your suppliers. • Use the FIFO method of rotation (First In, First Out) for all items in your store. Good rotation of your merchandise ensures that your customers are getting the same excellent quality every time they buy.

6 — FOOD & BEVERAGE REPORT, MAY 1990 FINANCIALADVISER Pollution control industry offers opportunities for financial growth

By Carl Damian Gill over the last few years to meet this pollution control industry. can help you select adequate The environment is getting a great demand. The tremendous cost Today there are several companies diversification; and can get you the deal of attention these days. Everyone associated with environmental clean-up that dominate the waste disposal, air maximum discounts to buy and sell. from the President to kids in grade represents a virtually untapped rescue scrubbers and water treatment markets. Concerning diversification: They will school has something to say. bonanza. The following list names just a few: own not only the proven Blue Chip No matter Because of the scope of the leaders (for stability and income) but who’s talking, two problem, the coming environmental Domestic also the emerging growth industries in things are agreed mobilization could create the greatest • Tyco Labs this sector. In addition, they are more upon: 1) More growth industry the world has seen • Safely Kleen likely to know about management environmental since the ascendancy of the U.S. • Calgon Carbon changes, law suits or mergers. clean-up is needed; military/industrial complex in the • Zum Industries In conclusion, I would like to ask: 2) this clean-up is aftermath of World War II. • Waste Management What are you doing now to profit from going to cost a lot of In the years ahead. Congress may Foreign the current boom in pollution control? money. have no choice but to enact sweeping • Laidlaw, Canada Would a potential return of 20% or Today, nearly 25 environmental mandates, dramatically • Technocell AG more a year bring you closer to your million dollars per changing the way goods and services • Norit NV retirement goals? Could you have more year is spent are produced and used throughout every • Nippon Synth peace of mind by having a professional disposing of non-hazardous commercial area of commerce and industry. From • Asahi Glass management fund compound your and residential waste, and this figure is toothpaste to transportation, from growth to realize this return? Call (1- expected to increase by 15%-20% elastic bands to electric power These companies all demonstrate 800) 858-4801 for our complimentary annually. generation, industries will have to accelerating earnings and an average reprint on Pollution Control — A It’s estimated that cleaning up acquire new technologies and processes growth of no less than 25% per year for Growth Industry nuclear waste sites will cost between to clean up their operations. the past several years! (For a complete Carl Damien Gill, a registered 170-200 billion dollars. Project that As large as the task o f clean-up is list of Pollution Control Stocks and representative with First of Michigan, has over the next decade and 1.5-5 billion here in the United States, it represents their vital statistics, call me at the been in the securities industry since 1983. dollars per year will be spent on only a drop in the global bucket. number listed at the end of this article.) Gill specializes in retirement planning and pollution control. Eastern and Western Europe are years If you are interested in investing in professional money management for Massive expenditures are being behind the United States in pollution this new growth industry let an expert individuals as well as corporations. Call mandated by the environmental crisis Gill to learn more about financial planning control efforts and are struggling to help you make your buying decisions. at (313) 358-3290. and numerous companies specializing catch up. This creates a world market A fund or public money manager in waste management have emerged for the already-established American specializing in pollution control stocks

PICNIC PICKIN'S

The Consumers Beverage Choice of the 1990's is here today! 100% Natural...Sparkling Mineral Water with Pure Fruit Juice

Sparkling mineral water with pure fruit |uice

WYANDOT.

FOOD BROKERAGE, INC. 21850 Greenfield Road. Oak Park. Michigan 48126 • (313)968 0300 “ Our Individuals.

GRAND RAPIDS MICH To le d o o h o We feel this Is the greatest resource (616) 5 38-4040 (419) 891- 1034 of any corporation.’’

FOOD & BEVERAGE REPORT, MAY 1990 — 7 RETAILER PROFILE Committment to renovation helps revitalize Great Scott! chain Great Scott! Supermarkets. Inc., has been a fixture in the Detroit market for more than 30 years. Since 1985, under the leadership of its current management, the chain has undergone a remarkable revitalization. This is due in part to an extensive renovation, remodeling and remerchandising program which has resulted in an exciting period of growth for the company. In July 1987. publicly held Allied Supermarkets. Inc., merged with The Vons Companies. Inc. At that time, a group composed of Allied’s top management formed Meadowdale and bought the Great Scott! and Abner Wolf operations. Great Scott! operates 34 supermarkets. This makes it the third largest supermarket chain in the tri- county area. The average supermarket is 26,000 square feet in size Great Scott! has four stores under construction, one in Clarkston. one in New Baltimore, one in Harrison Township, and one in Farmington Hills The new stores planned for the near future will average more than 40.000 square feet. A recent $30-million capital expenditure program has made Great Great Scott! operates 34 supermarkets, making it the third largest supermarket chain in the tri-county area. Scott! one of the most modem chains with remodeled stores employing state- Great Scott! success story as high The management team is headed by administration and treasurer; Edward of-the-art equipment and technology to technology. Retail store managers David K. Page, chairman of the board Suzina, vice president-wholesale sales improve customer service and control average more than 25 years of industry and chief executive officer and Joseph and merchandising; and David costs. Great Scott! uses talking experience. Many have recently Mocnik. executive vice president and McQueen, vice president-retail checkout scanner systems and video received special communications chief operating officer. Corporate operations. point-of-sale promotions and training to sharpen their interpersonal officers include: Desmond Defigeiredo, "We give the customers what they demonstrations. “We have tried to and skills. vice president-information systems; want." said Mocnik. “I think if you look succeeded at being the first with the There has also been an expanded Donald R. Gapp, vice president- at the variety of brands and items we most new things, like live lobsters and selection of products and services. controller; David McQueen, vice have at the stores, you can see why we salad bars." said Joseph Mocnik, Typically. Great Scott! stocks president-store operations; Larry are so successful. If you want executive vice president and chief approximately 22,(XX) items. The new Rasmussen, vice president-real estate something you’ll find it at our store, operating officer. stores are expected to offer an even and store development; Lloyd from the fanciest olive to the cheapest Employees are as important to the larger number of items. Silberman. vice president- olive.”

DISTRIBIUTOR PROFILE The McColgan family finds success in two companies in the food industry It is not often that an When McColgan started with Hamady but his son James In addition to McColgan individual is successfully Hamdy. the company was McColgan Jr., runs the Jr., other members of the involved in more than one losing $600,000 to $700.000 wholesale side of the company. family are involved in the aspect of the food industry. each month and was in McColgan believes his retail business. Another of In 1969. James McColgan Chapter 11 bankruptcy. experience gives him a McColgan s sons. Robbie, is Sr. and his brother formed M In just more than a year perspective that makes him vice president of M & B & B Distributing Company, a after McColgan started at more sensitive to the needs of Distributing, his wife. Jane, is wholesale food distributor One Hamady. the company began his wholesale customers. secretary, his son Erin is a year later. Jim purchased his making a profit. "When we are acting as a Hamady supervisor, and his brother 's interest and become It's a tremendously distributor, we understand the two son-in-laws are managers sole owner. exciting industry ." said needs of the retailers, what they M & B is a full-line Originally operating out of McColgan. "The businesses go through." said McColgan. distributor and carries in Flint. M & B expanded to are different, but my "At the wholesale end of it excess of 10,000 items Dallas. Houston, and Atlanta in philosophy is if you run a good you have to deal with a few including a complete line of the early 1980s. The company company it doesn’t make a people, while in retail you have dry groceries, dairy products, employs about 200 people. difference what the business to deal wth a multitude of and frozen foods. The In 1988, McColgan is." people. The challenges are warehouse stores in excess of assumed control of the McColgan is involved with different for both and very 7,000 items. James McColgan Sr. Hamady supermarket chain. both M & B Distributing and gratifying."

8 — FOOD & BEVERAGE REPORT. MAY 1990 Abner Wolf introduces a new private label product line Abner Wolf Distributors, a division to help recycle packaging materials in cleaner, healthier environment. If G-R- Environment Friendly products of Meadowdale Foods, Inc., announces an effort to become more E-E-N products do nothing more than include President’s Choice G-R-E-E-N the introduction of “President’s environmentally aware and responsible. teach us that something can be done — disposable diapers that use special fluff Choice,” an innovative new product “The more we learn about landfills, even by individuals — to help improve pulp which is bleached with hydrogen line of superior quality private label polluted streams and toxic dump sites, the planet, they will have made an peroxide rather then chlorine, and supermarket products now available in the more we realize our obligation to important contribution.” require half the number of trees needed Michigan exclusively through Abner the consumer to take a leadership The President’s Choice G-R-E-E-N to produce conventional disposal Wolf Distributors. position in this shared responsibility.” Environment Friendly line features diapers. Additionally, the wastes from Abner Wolf is one of only five said Joseph Mocnik, Meadowdale grocery items that help reduce pollution the hydrogen bleaching process are distributors in the entire United States executive vice president and chief and preserve the environment through water and oxygen, rather than the toxic that offer the new President’s Choice operating officer. "We must point out biodegradable products and recyclable chemicals produced by conventional brand. This new private label line that this is only a single step toward a materials. mills. includes premium products from all over the world which sell for less than national brands. Many new products were developed especially for the President’s Choice program, and 65% of the line is produced in the United ATTEND States. Ed Sudzina, vice president of marketing says, "on the basis of their superior quality alone, we are anxious EMI’S to bring these products to our Abner Wolf distribution accounts. The fact that we could price President’s Choice CONVENTION products lower than their national brand counterparts confirms our decision. We now have 150 products with the AND President 's Choice logo and have plans for 40 more within the next six months ' Product developers of President’s Choice consult with the leading experts in the field in developing value-priced PROFIT! products from pizza to pet foods. More importantly, while President’s Choice Large store or small, FM I’s Supermarket products are manufactured to strict standards to ensure they’re equal to or Industry Convention is filled with opportunities and better than the leading national brand, ideas to increase your bottom line. they are also offered at the lowest Over 1,000 manufacturers will be present, eager possible price. President’s Choice has been to show you new money-making ideas. You'll see developed and marketed by Loblaw products and services designed to benefit every size Companies. Ltd. The company has been o peratio n. selling President’s Choice in Canada for more than five years and is now And in today s highly competitive market, actively extending distribution to staying abreast of industry trends is critical. That's selected retailers in the United States why FMI offers 50 up-to-the-minute workshops on and elsewhere internationally. To further compliment the line. every aspect of the business. Like advertising and Abner Wolf Distributors is also promotions. Traffic-building ideas for every unveiling a multi-faceted new supermarket department. Ways to streamline environmental program, called the G-R- E-E-N program o Peranons' antl hire the right people. It's The G-R-E-E-N program which J all there for you—from consumer trends made its debut March 12, introduces a INSIDE to the latest technology. line of 37 grocery and food products OUT which are designated environmentally So be sure to attend . . to your profits. friendly or body friendly. At FMI’s Supermarket Industry Convention. The G-R-E-E-N products are pan of the President's Choice private label line. In developing the G-R-E-E-N product line. Loblaw officials consulted For more information, with environmental organizations like The Supermarket Industry Pollution Probe. Friends of the Earth call 1-202-452-8444 and Greenpeace to identify major Convention and environmental and health concerns, and FOOD MARKETING INSTITUTE Educational Exposition Food Marketing Institute in some cases, to develop specific products the groups felt were needed 1750 K Street. N .W . As pan of the G-R-E-E-N program, May 6-9, 1990 Washington. D.C. USA 20006 which Abner Wolf is undertaking in Telephone: 202-452-8444 response to grow mg consumer Chicago, Illinois USA awareness of environmental and health Telex: 892722 FMI USA WSH issues, they are also offering programs Fax: 202-429-4519

FOOD & BEVERAGE REPORT, MAY 1990 — 9 LEGISLATOR PROFILE I Rep. Paul Wartner — From bootstraps to the ballot box The Speaker gets his phone calls Wartner benefitted from a strong returned! Somebody’s ox is gonna’ get work ethic instilled early in life. He gored! You don’t win lights with 800- grew up in a large family in Detroit. pound gorillas! "With nine kids you didn’t have any In Lansing, some things are just money, so you did whatever you could accepted as fact. to make a buck.” he says, recalling To that list you can add ... “if there’s those early days One of his many jobs an issue involving small business. Paul was that of a Tiger balboy. Wartner is close by!” His uncle. John Hand — the subject It really comes as no surprise that of warm tribute from Detroit News Rep. Paul Wanner justifiably enjoys a Sports Editor Joe Falls just prior to reputation as a champion of business in Hand's death last April — was the general, and independent business clubhouse manager. Wartner’s specific people in particular. The Portage tasks quickly dispel the glamorous Republican earned the label the hard image that working for a major league way. by fighting in committees and on team invokes. the floor to ensure Michigan continues "We got six dollars a day.” he says to be an attractive place to do business. with a large grin that spreads easily From his position as Minority Vice- across his face. “We started at eight Chair of the Insurance Committee, he o'clock in the morning and got to knock consistently raises his voice on behalf the dirt off hundreds of pair of spikes; of Michigan’s business community. He then shine those shoes. After that, we also serves on the Corporations and had to clean out the clubhouse, and then Finance Committee, and of particular fill the pop and beer coolers. When the interest to AFD members, he is a ballplayers came in after their morning respected and vocal member of the workout, we had to cater to them.” Liquor Control Committee. While working as a mailman after Rep Paul Wartner takes time to visit with a retailer. One word that aptly describes Paul high school. Warnter was encouraged Wartner says the most rewarding government to children, preferring the Wartne r’s approach to politics is by a former teacher to attend Michigan aspect of being a legislator is helping younger set. "They have a little bit of “equity.” He doesn’t believe in giving State University. He did. And in what people navigate through governmental knowledge and want to expand it," he an individual or industry an unfair was becoming typical Paul Wartner red tape. His broad experience has said. "They’re interested in learning advantage, something for nothing. But style, gritty determination proved to be proved invaluable in providing that and it’s fun teaching them.” if people are willing to work and abide the driving force that got him through assistance. "My tax background enables Paul Wartner didn’t set out to court by the rough and tumble rules of free college. me to really help my constituents. For favor with AFD. But his voting record, enterprise, he’ll fight to make sure they He worked three jobs, obtained my lower-income senior citizens. I strong support for the free enterprise have an opportunity to compete. student loans and was awarded prepare their lax returns myself, free of system and willingness to let fairness academic scholarships. I was Nothing more — but nothing less. charge." be his voting guide, makes him one of That sense of fairness was evident appreciative of the free enterprise He also sets aside time to teach AFD’s best friends in Lansing. during the legislative battle over the system and how you can make it on unredeemed deposits. The bill was your own." he said. "But I paid back subject to lengthy and frequently every nickel I borrowed." rancorous discussion, both in the A variety of jobs followed college Liquor Control Committee and on the He worked for General Motors, the House floor Michigan Department of Education and During the public debate, and the Portage Schools. In his spare time. behind the scenes as well. Paul Wartner Wartner completed a Masters of tenaciously held the position that some Business Administration from relief for the retailer was long overdue. Michigan State University. He prevailed. Along with Rep. Pete Living in Portage, he now had his Weeks (D-Warren). Wartner crafted a own successful real estate and compromise that provided retailers with bookkeeping business. But something 25 percent of the unclaimed deposits. was missing. ELECTRIC His effectiveness in the Legislature "My name recognition in the can be traced directly to the respect he community was high." he says. "I was COOKING enjoys from colleagues on both sides of President of the Chamber of Commerce the aisle. When the issue involves and the Rotary Club." He decided to try IS LESS OF A MESS. equity, the Capitol has learned that Paul politics, and for the right reason; he Wartner is a formidable opponent. could help more people. SO YOU DON'T G E T T A K E N What you can do about workers' comp costs TO THE CLEANERS.

Controlling workers’ compensation Classification and claims costs must be a priority for all Change rate classes for some convenience store employers. Consider employees (Some insurers may work Flames create soot and smoke that with you to classify certain occupations smudge and smear walls, ceilings, work this checklist: areas and utensils. All of which must be Your employees at lower rates than others.). scrubbed and scoured. All of which Detroit Maintain an effective safety program. • Pay small claims yourself. cost money. All of which you can wash your hands of because electricity cooks Edison Research and analyze injury trends. • Ask for premium discount if you clean. So, from steamers to ovens, it’s • Get injured workers back to work believe your company is safer than the wise to electricize. A good part of your life. quickly. industry average.

1O — FOOD & BEVERAGE REPORT. MAY 1990 SDD/SDM Giveaways include 3y John Dagenais Coca-Cola promotion The top liquor store buyers offers canned money expensive trips and tickets to sporting events. Top Michigan liquor Independent SDD buyers of liquor for 1989 are as follows: Coca-Cola will introduce buyers are announced its “Magic Summer ’90” prize $917,752 Perrier will be back 2. Bottle & Basket. Birmingham giveaway promotion from mid- Associated Food Dealers $841,537 on shelves in May 3. Showerman's. Livonia May through August offering presents the top 30 4. Cloverleaf Market. Southfield $743,588 $100 million prizes. The prizes Perrier sparkling water independent package liquor 5. Maryland Beverage. Detroit ___ $737.917 will be given away in Coca- carrying a special new label to store buyers from the Michigan 6. Grodi Beer Store. Erie $716,289 distinguish it from those pulled Liquor Control Commission 7. Nansi Corp.. Livonia $617,351 Cola Classic cans. during 1989. The chart (right) 8. Tradewinds Liquor. Detroit $607,874 Cash awards will go as from store shelves recently will excludes large chain operations 9. Walsh's Party Store. Port Huron $571.864 high as $200, but higher cash be shipped into the Detroit- and highlights independent 10. Beverage Warehouse. Beverly Hills $553,714 prizes will be given through a area during May. retailer purchases made last 11. Merchant of Vino. Troy $551,952 voucher system. The shipment of new year. 12. Glen's Market. Saulte Ste. Marie $547,645 Prize-winning cans will not bottles marked with the words For the record, Meijer’s 13 Oram's Party Shoppe. Detroit $545,016 contain any soda. The winning "Nouvelle Production” has Thrifty Acres store in Royal 14. Busatti's Liquor. Southgate $535.100 cans have specially bonded already started in Canada and Oak had purchases of 15. Big Ten Party Store. Ann Arbor $500,635 tops that hold the prize and a the eastern United Slates. $1,176,147, which were the 16. Bacchus Wines & Spirits. Kalamazoo $492,150 water-filled section with the Perrier’s importer in the highest in Michigan last year. 17. Casino Party Store. Detroit $492.136 can. United States announced plans $486,960 Meijer’s store in Northville 18. Alger Party Store. Grosse Pointe The special cans were made for a $25-million marketing 19. House of Liquor. Detroit $485,910 followed with purchases of at a secret location and took campaign to keep the name 20. Happy Four Party Store. Detroit $475,727 $1,152,493 and the Taylor more than two years to before the public and to rebuild 21. Alban's. Birmingham $450,598 location bought $828,535. develop. They look and feel sales of what had been the top­ 22. Big Tod Market. Detroit $450,453 Total SDD liquor purchases like any other Coca-Cola selling imported bottled water 23. Liquor & Company. Detroit $446,135 Classic can. in the world. from the Michigan Liquor 24. Parkway Party Center. Mt. Clemens $441,223 More than 750,000 cans Newspaper ads appearing Control Commission in 1989 25. Wood's Party Store. Grosse Pte. Woods $433,715 will be sold individually or in in March in Detroit-area amounted to $385,486,299. 26. Red Wagon Shoppe. Rochester Hills $432,203 the multi-pack system. Another The biggest buyer by county 27. Kenwood Market. Detroit $428,075 newspapers carried the was Wayne with a little more 28. B.B.'s Party Store. Warren $426,979 120 million cans with surprise message; "Perrier. Worth stickers will be distributed at than $137 million, followed by 29. Telkaif Market. Detroit $426,232 Waiting For.” Oakland with about $50 30. Cox's Beer Store. Temperence ____$419.125 more than 40.000 participating • See SDD/SDM, page 17 million. restaurants and stores.

Your Risk NEW LIQUOR SHELF PRICE TAG SYSTEM is our Command \ 3832-7 Bacardi Silver Label 750 ML Employee Benefits • Workers Compensation •

General Liability • Property 8.29 (Actual Size) Wherever you are exposed to Receive a Liquor Shelf Price Tag for every listed item in both the risk and liabilities, call on the Michigan Liquor Control Commission's - LIQUOR PRICE LIST and company with the commanding SPECIAL ORDER PRICE LIST starling with an effective date of presence in the industry: April 29, 1990 along with all quarterly price/change updates tor a year. Each non-tear plastic coated tag contains the Michigan CRMC, the people who manage order code number, the brand description, volume of liquor, and risk creatively. the price. The price tags come 20 per sheet in 2 binders and follow the same sequence of order as listed in the Michigan Liquor Control Commissions Price Books.

Some of the benefits the system offers: 1.) Customers see a look of uniformity and organization. 2.) The uniform single unit non-tear tag construction means no more tailing off of plastic numbers or dealing with broken numbers. 3.) The easy to use tags help eliminate mis-priced shell rows and potential violations 4) The State Order Number on each lag makes lor easy re-order and inventory control. 5 ) Empty rows of liquor are now easy to deter­ mine what goes back into a particular row 6 ) Having correct price/ change updates in easy to use sheet lag form reduces time and errors.

Mt C lem ens Michigan 48043-4890 Cost for a years subscription is $135.00 per store. Cost for a second (313)792-6355 FAX: (313) 7 9 2 - 9 4 2 9 ye ar of price/change updates is $100.00 Call or write:

SAXON, INC. A Lincoln National Company 1930 Hilton • Ferndale, Ml 48220 • (313) 398-2000 • (800) 727-1976

FO O D & BEVERAGE REPORT MAY 1990— 11 Attend 1991 Trade Show The 1991 Trade Show will be at the Fairlane Manor, Dearborn, on Tuesday, April 16 It's never too early to reserve your booth' For information call AFD's Trade Show Department at (313) 557 9600 The following companies were a part of the Associated Food Dealers very successful Trade Show at Fairlane Manor on March 27 Thank you for participating in the 1990 Trade Exposition "Profit for the '90s."

Abner Wolfe Lipari Foods Acme Food Brokerage London's Farm Dairy All American Cash Register Melody Distributing Company All Star Foods Merchant Cash Register Amato Foods Merrill Lynch American Sound & Video Michigan Bell Telephone Company Anheuser-Busch Michigan Cash Register Archway Cookies Michigan Liquor Control Comm, Awrey Bakeries Michigan National Bank Blue Cross Blue Shield of Michigan Midwest Butcher & Deli Brehm Broaster Sales Miller Brewing Company Bureau of State Lottery Minnesota Bar Supply Cadillac Coffee MMI Distributing Central Alarm Signal Mucky Duck Mustard Checkpoint Systems Nikhlas Distributors Coca-Cola Bottling Co. of Detroit North Pointe Insurance Continental Baking Otis Spunkmeyer Cookies J Lewis Cooper PepsiCola Coors Brewing Company Pfeister Company Country Home Creations Philip Morris USA Creative Risk Management Prince Crosset Company RM Gilligan DCI Food Equipment Royal Crown Cola Detroit Edison Scot Lad Foods Detroit Popcorn Seven Up Faygo Stark & Company Frankenmuth Brewery Sterling Shores Frito Lay Stotz Publication General Liquor Sunshine Biscuit Gourmet International Supermarket Development Corp Great Lakes Data Systems Swift Eckrich Hiram Walker The House of Seagrams Hobart Tom Davis & Sons Dairy Paul Inman Associates Tony’s Pizza Service Jay's Food U S D A Food & Nutrition Services The hall was filled with a variety of aromas, as several exhibitors cooked their Kar Nut Products Ultra Lite specialities for sampling Kowalski Sausage Winston Sales & Service

mustard

COOKING ELECTRICALLY IS LESS COSTLY. SO UNLESS YOU HAVE MONEY TO BURN...

.. .Consider Electricity. It's efficient by Several exhibitors decorated their booths in a festive fashion design. More o f the heat energy goes directly to the product. There'S also less Detroit maintenance. Cleanup is easier. And replacement costs are lower. When Edison you know all the fa c ts-fro m fryers to broilers-it's wise to electricize. A good part of your life.

12 — FOOD & BEVERAGE REPORT, MAY 1990 imes, raffles and prizes were highlights at many of the booths at the show.

Attendees enjoyed tasting a variety of foods.

xhibitors demonstrated their products and equipment to enthusiastic retailers. Retailers enjoyed the many question and answer seminars. 1990 AFD Trade Show Attendees and exhibitors agree: Fairlane Manor show a success The following are some thoughts of attendees and "Enjoyed the show, got food leads, will participate “Great show, new ideas, such as computerized exhibitors about the 1990 Associated Food Dealers next year. Heard good response from the retailers, lots cash registers, direct wiring of daily deposits to the Annual Trade Show: of people returning to get more samples." — Joe bank. One of the better shows. Good location and Amato. Amato Foods good attendance by dealers and members at large. We introduced our new GT 6000 P.O.S Scanning Looking forward to next year's show." — R.D. Systems. It was the first introduction anywhere in the "We exhibited in the show with the objective of Martynaik, Ray’s Prime Meats state of Michigan. We had lots of interest and many presenting our new' “president’s choice" lable. We got encouraging and positive compliments It was a good a lot of publicity and consider our participation a "Very good show, good booth representation, show that was well attended, and we are planning to success." — Len Werner. Abner Wolfe especially liked the security and equipment products. be there next year." — Thomas Haydu, Hobart Enjoyed the drawings and prizes. Fine location." — Corporation "I thought it was a wonderful show, very crowded Larry Shaw, Pontiac I.G.A. It was fantastic exposure for us. being a specialty "Good show, better than last year’s Good to see product I think it stretched our credibility by being in "On a scale of 1 to 10, I would give this show a the laces of the store owners we deal with, especially the show." — Michelle Marshall, Mucky Duck 10." — Kenneth Atchoo, McK’s Wine Shoppe in a non-business atmosphere where we can give them more attention. We will definitely be in next year's show." — John Wojnikci, Pepsi-Cola

FOOD AND BEVERAGE REPORT MAY 1990— 13 SAVE UP TO $500, B Y NOT AN OLD FLAME

If you’re thinking about replacing your old gas cooking equipment, think electric. It's clean. It’s efficient. It’s more profitable. And if you qualify, we’ll give you a discount incentive of $50 to $500. To find the Detroit registered Detroit Edison food service dealer nearest you, call 237-9225. Or call and make an appointment to try out electric cooking in a dealer test kitchen. Edison Once you’ve given it a try, you’ll find that it’s not only wise, but it pays to electricize. A good part of your life. Be sure you know limitations of your fire insurance coverage 'Endorsements' may give the extra protection you need

Three elements of basic fire time. insurance policies seem to cause • Demolition coverage — Some frequent problems. municipalities have a rule that if One such element comes under the structures in certain areas are destroyed heading of "property not covered." A by as much as 25% or 50%, then the second element deals with balance of the structure has to be endorsements available that supplement demolished and rebuilt from the coverage. And a third element deals beginning. Your insurance will cover with the proper way to handle the demolition and debris removal of “improvements and betterments.” that portion of your building which was destroyed by fire; but will not extend to Property not covered the portion of your building which was Many individuals have the not destroyed by fire. erroneous impression that everything • Glass breakage — Most property they own is automatically covered policies cover glass only if it is glass under the basic fire insurance policy. building brick. For just about any other Although not considered exclusions, type of glass, a separate endorsement is there is a section of the fire policy necessary. which deals with “property not • Broad named insured clause — The covered.” purpose of this clause is to The basic fire policy does not cover automatically pick up all subsidiaries of animals, aircraft, watercraft (including your company even'though those motors, equipment and accessories), to subsidiaries may not be named on the name just a few. property policy. Most of the above-mentioned • Reporting form — The essential property is more properly insured under feature of any reporting form is that an a separate insurance contract. insured with property that fluctuated in Also, under the heading of “property value will be protected at all times and not covered” is the cost of excavations, will pay a premium based on the values grading or filling; foundations of actually at risk — provided that values buildings, machinery, boilers or engines are reported correctly and promptly and whose foundations are below the a sufficient limit of insurance is surface of the ground; underground maintained to cover the highest value at pilings, piers, pipes, flues and drains; any time. , and pilings which are below low In other words, if the insured lives watermark. Again, most of this up to the policy requirements, he or she excluded property can be picked up by will have complete and automatic endorsement. coverage, will avoid the dangers of both underinsurance and overinsurance on Endorsements the property, and will be spared the There are certain endorsements necessity of increasing (often with available that can be used to possible short rate cancellation supplement your basic fire policy if penalties) as values move up and down. they arc needed. Improvements and betterments • Sprinkler leakage — If you have sprinklers in your building you may You may have invested a great sum want sprinkler leakage coverage. The of money in improvements and damage caused by water from a betterments as an owner or as a tenant. sprinkler system that has been triggered If you own the building, these by fire is covered the basic fire policy; improvements and betterments should however, accidental leakage not properly be covered as a “building” associated with a fire or certain other item. (Since your “building" fire rate is allied perils is not covered. cheaper that your "contents" fire rate, it • Building code consequential coverage behooves you to make certain that your — Many municipalities say that if a improvements and betterments portion of a building is destroyed by a evaluation has been calculated as part fire, certain areas in the remaining of your building value as opposed to portions of the building have to be your contents value.) upgraded at the time that the destroyed On the other hand, if you are a section is rebuilt. tenant you must be extremely careful to It is possible to endorse the basic fire make sure that your improvements and policy to cover this additional expense betterments are covered at all. Strictly with a building code consequential speaking, the improvements and coverage endorsement. betterments are part of the building and • Inflation guard endorsement — This since the building belongs to your endorsement automatically increases landlord, you may find that you have no Being #1 runs in the entire family of Prince the value on your property during the right as a tenant to collect for your loss products And we're running harder than ever course of the year. Normally you would to improvements and betterments not increase these values until renewal following a fire. to sell more pasta We thought you'd like to know.

FOOD & BEVERAGE REPORT, MAY 1990— 15 PEOPLE LEGAL BRIEFS Public can comment on obtain current data on authorized firms, WIC Program in Michigan which is to be funded by a small annual fee assessed to the retailers. USDA also WIC Program Federal Regulations wishes to obtain the Social Security require that state agencies establish number of every store manager of procedures to ensure that the public has authorized stores. an opportunity to provide comment on the development of the WIC Program FMI requests permission State Plan of Operations. to investigate Unimax The Michigan Department of Public FMI has written to Chairwoman Health will accept written comments Janet Steiger of the Federal Trade regarding the operation of the WIC Commission (FTC) requesting the FTC Program in Michigan between May 1, to take immediate steps to protect 1990 and June 30, 1990. Comments consumers from the deceptive practices may be related to any aspect of the being employed by Unimax, Inc., an operation of the WIC Program in Illinois corporation. Michigan. These comments will assist Unimax is marketing a program the Department to constructively called “The Smart Shoppers Club,” review WIC operations and make which offers consumers who sign up by London's Farm Dairy honors contest winners improvements in the operation of the paying a membership fee, an WIC Program in Michigan. Comments Doug Mowat, president of London's Farm Dairy, (right) honors five opportunity to pay $60 a piece for $70 should be mailed to: Michigan students, winners in a recent national essay contest themed, supermarket gift certificates. Unimax WIC Division “Our Future in Space." Each student will receive a scholarship for a also offers members the opportunity to Bureau of Community Services week-long visit to U.S. Space Camp, round-trip air fare and a one-day market memberships in the club for a Michigan Dept, of Public Health pass to Walt Disney World. The winners are: Shannon Trent, 17, of commission. FMI has asked the FTC to P.O. Box 30195 Swartz Creek (left); Sandra Schaub, 17, of Bay City; Linda Kraft, 15, take whatever steps are necessary to put of Warren; Trephina Frahm, 13, of Reese, and David Cybulski, 17, of Lansing, Michigan 48909. an end to this apparent fraud upon Utica. Co-sponsor list grows consumers and supermarket operators. for national bottle bill Spartan Stores announces Soft drink association Study: Firm market power The co-sponsor count for Rep. Paul has no effect on prices two promotions appoints president Henry’s (R-MI) national bottle deposit legislation has reached 94, just six co­ After more than eight years, the Spartan Stores, Inc. announces two William E. sponsors shy of his goal of 100. U.S. Department of Agriculture’s promotions within the organization. Lobenherz, formerly The Henry proposal, which draws Economic Research Service (ERS) has Doug Domine has become grocery with the law firm of heavily on the provisions of his home released its study of retail food prices. purchasing manager, assuming Dykema Gossett, has state’s aggressive deposit law, would On April 12, 1981, USDA had responsibility for grocery, frozen, and been appointed require a refundable deposit of at least announced it would examine the dairy areas. Domine replaces Carl President and Chief five cents on bottles containing soft reasons for retail price differences Christenson who retired after 30 years Executive Officer of drinks, beer and wine coolers and a between cities, and between inner city with Spartan Stores. The position of the Michigan Soft two-cent handling fee. and suburban stores in the same city. controlled brands manager, previously Drink Association, a Rep. Henry still has plans to attach The December 1989 study, which just held by Domine, has now been filled by Lansing-based trade his measure, H.R. 586, to legislation appeared in print, found that Joe McKie. McKie will oversee the Lobenherz association reauthorizing the Resource supermarket size and sales volume, sales, marketing, quality assurance and representing soft drink manufacturers in Conservation and Recovery Act occupancy costs, store services, and promotion of Spartan brand products. the state. (RCRA). Based on RCRA warehouse stores contributed to firm Domine joined Spartan Stores, Inc. reauthorization hearings held last price differences within cities. in 1981 and brought with him a Archway announces summer, at which Rep. Henry testifed ERS used data from seven considerable degree of supermarket corporate promotions for his bill, the federal government’s randomly selected cities and collected experience. His background includes Archway Cookies, Inc., announces role in solid waste management will prices from 616 supermarkets in the employment with Eberhard Foods, the promotion of Eugene McKay III, clearly be expanded as Congress early 1980s. Market growth, market Allied Supermarkets in Detroit and and Thomas Olin Jr. to the National attempts to establish a comprehensive rivalry, and market entry accounted for retail work with Great Scott! Markets. Corporate Office in Battle Creek, national waste management strategy. firm price differences between cities. Prior to his current position of grocery Michigan. Prior to joining Archway, RCRA reauthorization will likely take There was no evidence that firm market purchasing manager, Domine has held McKay was associated with Michigan place under H.R. 3735, a power — the ability to unilaterally raise positions with Spartan Stores as a National Corporation where he served comprehensive solid waste act prices — had a significant effect on grocery buyer, retail account as electronic services product manager. mandating that states achieve within supermarket prices. The study found merchandiser, controlled brands Since November of 1987 Thomas four years a recycling rate of 25% of all that leading firms in a market, ranked marketing specialist and controlled Olin Jr. has been associated with the according to sales shares, had diverse brands manager. waste generated annually. Archway Cookies, Inc., bakery in pricing patterns, with no apparent McKie has been an associate of Boone. Iowa, where he was sales relationship to four-firm market Spartan Stores, Inc. for nearly four manager. Before joining Archway, Olin Administration makes concentration, or to firm market share. years and has achieved rapid career was employed by Presto Products, Inc., food stamp proposals Copies of the study, Supermarket growth since that time. Starting as a of Appleton, Wis., as corporate product Prices and Price Differences: City, private label merchandiser, he High-ranking officials of the manager. Firm and Store-Level Determinants, are progressed to account merchandiser and Department of Agriculture (USDA) available for $8 from ERS-NASS, then to private label merchandising have visited FMI to discuss possible P.O.Box 1608, Rockville, MD 10849- manager. His 15 years of retail legislative proposals they are 1608 or may be ordered by telephone at experience and association with the considering to reduce fraud and abuse (1-800) 999-6779. Ask for publication Spartan brand label will contribute in the food stamp program. FMI number TB-1776. greatly to his new position as controlled strongly objected to two of these brands manager. proposals. The first is to prohibit firms • See Legal Briefs, page 17 Spartan Stores, Inc. is a retailer- that are primarily wholesalers from owned cooperative wholesaler serving accepting food stamps in retail stores 500 independent members throughtout they own. The second calls for a Michigan, Indiana and Ohio. McKay Olin biannual reauthorization of retailers to

16 — FOOD & BEVERAGE REPORT, MAY 1990 PRODUCTS LEGAL BRIEFS Lunch will never be Saxon offers new liquor • Contined from page 16 the same again shelf price tag system Garbage backhauling bill Boring lunches are a thing of the Saxon, Inc. has introduced a new reported by House past with the announcement by Oscar Liquor Shelf Price Tag System. The The House Energy and Commerce Mayer of the national roll-out of their system provides a Liquor Shelf Price Committee has approved compromise new product line, “Lunchables.” Tag for every listed item in Michigan legislation (H.R. 3386) regarding the In test markets for two years in Liquor Control Commission’s Liquor hauling of garbage and chemicals in Seattle, Denver, Phoenix, and Price List and Special Order Price List. food trucks, tankers and rail cars. Cleveland, Lunchables lunch Each price tag contains the The bill requies the Secretary of combinations have met with resounding Michigan order code number, the brand Transportation to list non-food products endorsement from consumers, leading description, volume of liquor, and the that would pose an unnecessary threat price. The non-tear, plastic-coated tags to this early national roll-out. to health. These products would not be It’s the Real Thing ... come 20 per sheet in two binders and Lunchables is a line of convenient, allowed to be hauled in vehicles only it’s caffeine free follow the same sequence of order as ready-to-eat lunches, made up of carrying food. combinations of cold cuts, cheese and listed in the Michigan Liquor Control Coca-Cola is introducing a new The bill states explictily that the crackers. They come in Ham/Swiss. Commission’s Price Books. product. Caffeine Free Coca-Cola transportation by food trucks of Turkey/Cheddar, Bologna/American, Saxon's Liquor Shelf Price Tag Classic. corrugated cardboard, pallets, beverage and Salami/Mozzarella. A deluxe menu System is an annual service that The caffeine-free cola segment is containers and other food packaging provides in addition to the April 29, includes Ham/Turkey, Chicken/Beef, the fastest growing segment in soft shall not be prohibited. The legistlation Turkey/Chicken, and Beef/Ham. 1990 price tag books all quarterly drinks. The Coca-Cola Company is is now cleared for full House action. price/change updates for a year. The Lunchables range in size from 4 1/2 to expanding in this area; First with Similar bills are pending in the Senate - 5 1/2 ounces each. For the nutrition­ price/change updates are sent to Caffeine Free Diet Coke and now with -S. 1904. Gore (D-TN) and S. 1751. conscious, they range from 330-460 subscribers prior to the July, October Caffeine Free Coca-Cola Classic. Gorton (R-WA). calories each. Each Lunchables comes and January- effective change dates. The sharp gold and red packaging of complete with a napkin and the deluxe Some of the benefits the system: Caffeine Free Coca-Cola Classic is an variety also has a condiment sauce and • Customers see a look of uniformity added benefit for retailers since it FDA proposes rules for a mint wafer. and organization stands out so well on the shelf — health claims for food Packaged in Oscar Mayer's • The uniform single-unit, non-tear tag increasing awareness and prompting distinctive yellow and red colors. construction means plastic numbers The Food and Drug Administration impulse sales. Lunchables can be found in the won’t fall off and numbers won’t break has published a proposal for strict new Caffeine Free Coca-Cola Classic refrigerated section of your local • The easy-to-use tags help eliminate rules on health claims that can be made adds strength and visibility to one of the supermarket and are priced from $ 1.49 mispriced shelf rows and potential on food packages. Health claims will be most recognized trademarks in the to $1.99. For more information, call violations. allowed in certain instances, under the world. (608) 241-3316. • The State Order Number on each and proposal, but a company wishing to every tag makes for easy reorder and make them must first submit its Supermarket Development inventory control. proposed messages for agency review RC Cola extends family of Corp. expands service Cost for a year’s subscription is and support its petition with properly graphics to Cherry RC $135 per store. Cost for a second year supported scientific evidence that the Supermarket Development claim is valid. Royal Crown Cola Co. has of price/change updates is $100. For Corporation, a Detroit-based equipment introduced a new package for its Cherry more information, call (313) 398-2000 sales and service organization Reprinted from Food Marketing RC Cola brand to complete RC’s family or (1-800) 727-1976. announces its service department has Institute, Washington Report. of graphics. The new Cherry RC expanded operations to Northern package features the sweeping lettering Michigan. CLASSIFIED style characteristic of the flagship RC SSD/SDM Service technicians with a minimum Cola and Diet RC Cola containers. Food closeouts: Buy far-below of 10 years experience each, will be A new label — on both 12-ounce wholesale costs, brand-name grocery • Contined from page 11 based is Saginaw and Roscommon to cans and 2-liter bottles — features the items. New arrivals daily: DelMonte, assistance with equipment problems. Town House, Heinz, Keebler, Colgate, Lottery prize highlights words “Cherry RC Cola" in script-style Supermarket Development Crest, Palmolive soap, diapers, and for fiscal year 1989 lettering against a cherry red Corporation can service the following: much more. For more information, call background, broken by white horizontal Daily games — Nearly $248 million • TEC scales and printers A. R. M. Inc Phone (313) 552-003 Fax pinstripes. was shared by the holders of more than • Antonson Bakery Printers (313) 552-0133. The prominent RC trademark on the 1.7 million winning tickets. • Exact (Franklin Electric) new package will “draw consumer Wanted to buy: Overstock items, Instant games — Some $91.6 wrappers/labelers/scales attention at the point of purchase," said discontinued items, no-name products, million was won by 21.4 million prize • Butcher Boy-Biro-Hobart saws, Royal Crown Creative Services wines, spirits, any items that you want winners. The largest number of winners grinders, slicers, cubers to sell we have ready buyers. We deal Director K. Mallory. received smaller prizes in these games • Berkel in more than 10 counties and can move “Now, with RC Cola and Diet RC where the odds are most favorable. A • Heat Seal large quantities. Send all detail Cola, the new Cherry RC graphics will information including inventory to significant number of larger prizes were • Ovens and fryers provide higher shelf impact and a A.R. M Inc. 17135 W. 10 Mile. Suite also awarded. Supermarket Development billboard effect for the trademark." he 112. Soutfield, Mi 48075 Phone (313) Zinger — Nearly 400,000 winners Corporation has become a fast-growing added. 552-003. Fax (313) 552-0133 shared prizes totaling $18 million after service agency in the Detroit area A cherry couplet on the lower half Current customers include such the debut of this game in March. Zinger of the package gives the new label a accounts as: Farmer Jack. A&P. Great has the most favorable odds of all non- unique visual charm. scratch-off lottery games. Scott!. Kroger. Hamady Bros.. Vegas Cherry RC. a carbonated cherry - Campbell's Sales Co. 2 Food Centers. Savon. Shopping Center Lotto — In addtition to 58 jackpot flavored cola, was introduced in 1985. Oscar Mayer 3 Markets. Bloomfield IGA. and Pontiac winners who shared more than $190 Royal Crown markets its RC Cola, Hillshire Farms 5 IGA million. 668,000 ticket holders won Diet RC, Diet Rite, Diet Rite Flavors, Acme Food Brokerage 7 $90.9 million in other prizes ranging For service, equipment quotes or Detroit Edison 10, 12, 14 and Cherry RC through 263 franchisees more information, call ( 1-800) 882- Creative Risk Management Corp 11 from $48 to $4,502. and distributors in the U. S. and foreign 9174. Refrigeration 11 countries. Prince 15 Saxon, Inc. 19 The Pheister Company 24

FOOD & BEVERAGE REPORT. MAY 1990— 17 DEPT. OF AGRICULTURE that with EBT food stamp benefits are less likely to be diverted to illegal Division expands policy activities. Benefits arc being spent in food stores not on other things in other on ready-to-eat foods places. With the cost of handling food stamp coupons going up and the cost of The marketplace for ready-to-eat EBT going down, its clear which foods continues to expand and change. alternative shows the greatest potential To better accommodate these changes benefit to food retailers in the long run. and following resolutions of various From a government standpoint national interpretations, the Food much of the administration of the food Division has updated its policy by other stamp program is simplified and costs than weight or volume: are expected to be reduced over the * All food items sold for immediate long term. consumption on the premises. There are also great advantages to • Items sold for immediate consumption food stamp customers — security, off the premises if they are: money management ability, and a) Ready-to-eat, take-out meals convenience. composed of several elements. The FNS has already come far with EBT meals may include meat, fish, or technology, and is now moving into a poultry. new generation of demonstration b) Sandwiches when sold over-the- projects. We feel the new system shows counter on the premises where enough promise that we expect to be produced and not intended for resale. The USDA is experimenting using electronic benefits transfer cards to replace working with EBT for a long time. We c) Single-servings of beverages, the current paper food stamp coupons. will be working with retailers and soups, frozen yogurts, ice creams, and others to set standards and hope to other frozen desserts dispensed at the Food stamps through agree on principles and priorities that time of sale and sold by designation of will guide the development of this new the cup size (e.g., large, medium, small) technology in years to come. For provided either the fluid volume or the electronic benefits transfer example, the Electronic Funds Transfer actual size of the cups is clearly Association has already established an displayed prior to purchase. By Birge Watkins billion in benefits to more than 19 inter-industry working group on d) Ready-to-eat pieces of chicken U.S. Dept, of Agriculture million people a month. This requires standards for EBT, and we expect to and fish provided they are cooked on The new technology of electronic two-and-a-half-billion pieces of paper a benefit from their efforts. site, displayed for customer viewing, funds transfer (EFT) is rapping at the year — and that’s just food stamp Under an EBT system, food stamp and packaged after selection by the door of the food marketing industry. coupons. Not included is all the users apply for their benefits in the purchaser. Many food stores are beginning to paperwork involved in the allotment usual way, by filling out a form at their experiment with the use of credit cards, and issuance of benefits. The food stamp office. Once their level of LOTTERY debit cards and other high-tech accounting is enormously complex. benefits is determined, an account is electronic alternatives to cash or FNS must keep tabs on food stamps established in their name and they are State to reject returns checks. In some parts of the country, issued to recipients, food stamps issued a plastic card similar to a bank commercial EFT using Point of Sale redeemed at food stores, food stamps card or a credit card. They also choose of instant game tickets (POS) terminals is commonplace. In cashed in by stores at banks, and food their own personal identification After April 30, the Lottery will no other areas, a few merchants are stamps returned by banks to the Federal number (PIN) to use in conjunction longer accept “returned unsold” instant experienced in EFT/POS thanks to Reserve. with the card. Training recipients on game tickets for credit. This policy participating in an electronic version of The Food Stamp Program has been use of the card is one of the most applies to both full and partial books of the food stamp program. Food retailers around a long time, and has become a important steps in the process. tickets. in Michigan are embarking on a new fixture in American life and business. It From there on, the procedure is The final redemption date has been venture in EFT/POS that has the replaced the old system of direct food familiar to anyone who has ever used a removed from the ticket back starting potential to perform a variety of private distribution because our national bank card or a credit card. In the with the Michigan Baseball Game. and public functions including service leaders wanted low-income people to grocery line, the food stamp customer’s Tickets may be sold until your last to food stamp customers. have a choice in the food they buy, and card is run through an on-line electronic ticket is gone. (Tic Tac Cash remains a The federal government has been wanted their purchasing power to reader, they enter their PIN, and money current game and will continue to be interested in EFT technology for a long contribute to the health of the economy. from their food stamp account is available to order.) time, although the private sector has Since then, food stamps have transferred to the governor's account. As with Michigan Baseball, the taken the lead in research and become an important percentage of Accounting is all done electronically, Lottery will give you a two-week notice development. One of the most sales for many food retailers. As and counting and handling of coupons that a new game may be ordered. This promising uses of EFT is the delivery individuals, food stamp users have low and forms is eliminated. notice will not apply to Fame & of benefits in federal assistance incomes, but as a group their benefits FNS began its first experiment in Fortune, however. When it runs out of programs, and perhaps the most are substantial and all of it is earmarked EBT in 1984 in Reading, Penn. We one ticket, it will ship the new one. actively interested federal agency has specifically for the food marketing found out that use of electronic The Lottery has not made any been the Department of Agriculture’s industry. With that kind of economic technology was feasible for issuing changes to your Lottery line of credit Food and Nutrition Service (FNS), clout, services to food stamp users food stamp benefits, and that everyone — it still supplies the operating capital. which administers the Food Stamp should be a high priority to food — food stamp users, merchants, If you have any questions, please Program. retailers. bankers, and government administrators call your regional office. In the food stamp area, electronic EFT/POS technology using EBT and accountants — valued and funds transfers takes on a slightly offers many advantages to food stores, appreciated the new technology: COMING EVENTS different name: electronic benefits — some more obvious than others. • Food stamp users didn’t have to transfer, or EBT. However the principle Labor costs are reduced, paperwork is worry about their benefits being lost or May 6-9: FMI's Supermarket Industry remains the same. Funds are moved reduced, transaction time decreases, stolen, and they were more comfortable Convention, Chicago. For more from one account to another without and efficiency and convenience using their plastic cards to pay for their information, call (202) 452-8444. May 9: The Michigan Liquor Control each of food stamps ever changing improve and customer relations are groceries. They no longer had to go to Commission will hold a public hearing at hands. enhanced. In addition to substantial the food stamp office to get their 11 a.m. at the Lincoln Park Office of the The Food Stamp Program is a costs savings for retailers, FNS is benefits. Commission, 2251 Dix Hwy., to natural candidate for EFT/POS seeing evidence of increased food * See EBT, page 21 consider proposed amendments to the technology. It provides more than $1.1 stamp revenues. The primary reason is LCC’s Wine Rules.

18 — FOOD & BEVERAGE REPORT, MAY 1990 Student program to increase job readiness for young Detroiters

In early 1987, the Detroit increase the number of young “adult” version of that definition. The skill to the appropriate education or Renaissance Foundation, with support Detroiters who are productive members basic skills being demanded will be the training provider. In approaching this from the Mayor, began to address the of the economy. The project recognizes same; how they are measured and the task, the project, in its earliest stages, need to do something about conditions that one of barriers to achieving that acceptable level of achievement will concluded that “creation” of a new in Detroit. goal is the mismatch between the skill differ. clearing house was not needed if an Its mission was to create “action demands of the market and the job The next task is to clearly existing one could be reshaped to the plans" to deal with the problems in each skills of young people. communicate that definition to job task. The joint venture with the of these areas. Early in the planning The project sponsor, the Greater seekers and to all agencies which Michigan Department of Labor stage, it became evident that the Detroit Chamber of Commerce, and the provide education and training to young (MDOL) and the Michigan problems were interwoven; improved Detroit business community believe people. Again, the Compact has Employment Security Commission education and training of both youth (hat job-ready candidates will gel good successfully begun that (MESC) was the first step in that and adults was viewed as critical in jobs. "communication” to the Detroit Public direction. solving problems of crime and of There are four basic tasks: 1) define Schools. The job readiness definition The final task is to deliver jobs to economic development. basic job readiness. 2) clearly has become the chief "outcome" the clearing house. That task is The Strategic Plan Report was communicate that definition to all measure for the district's Detroit probably the most important. The issued through the efforts of the education and training providers, 3) Quality Education Program. Success for existence of a pool of jobs available Foundation in November of 1987. Work establish a clearing house which links the schools is to be measured by how only to candidates who have met the began immediately on implementing job-ready candidates with job openings, many students graduate ready for jobs employer-set definition of job-readiness the 42 recommended action plans. The and 4) develop a system for creating a or college. The project will seek to creates the "market" for the other Detroit Strategic Plan Jobs Project steady stream of job orders to the make that same communication link to changes the project seeks. The pool of emerged as the response to three of the clearing house. education and training providers who jobs linked to the defintion will be the recommendations: 1) to increase The first task is to clearly define deal mainly with adults — adult force which reshapes the providers of employment opportunities for high job-readiness for the 1990s. That task education, job training agencies, education and training. By creating a school age youth. 2) to expand the has already been started by the Detroit community colleges and others. clearly defined and channeled usage of adult education, and 3) to Compact, which holds the standards as The third task is to create a "demand" for “job-ready" candidates, smooth the entry of chronically decreed by the Strategic Plan Report, “clearing house" which links job the project intends to increase the unemployed or underemployed young which clearly defined it in terms of seekers with the basic skills to jobs. "supply" and to reform the suppliers. adults into the mainstream labor three skill sets: academic, personal The clearinghouse needs to also provide The potential for the pool of job market. management, and teamwork-leadership one other important service; it must link orders is what drew the state The basic goal of the project is to skills. The project will seek to create an job seekers who lack some necessary • See Program, page 21

Detroit Strategic Plan Jobs Program Job Pledge Form

Company Name:

Address:

Contact Person: ELLISON

Title: REFRIGERATION - HEATING AIR CONDITIONING Contact Phone Number: Over 20 Years Experience We pledge the following number of jobs to job-ready students from the Detroit Compact: Servicing the Food & Beverage Industries Stores — Restaurants — Bars __Full-time jobs __Summer jobs for college-bound students PHONE 540-7928 __Summer jobs for 16-17 year olds • 24 HOUR SERVICE

• CITY & STATE LICENSED (Authorizing Signature) • WRITTEN GUARANTEE ON ALL SERVICE WORK

Please return this form to: Greater Detroit Alliance of Business • SERVICE MAINTENANCE AGREEMENTS 600 W Lafayette Blyd Detroit, Ml 48226 • SERVING: WAYNE - O AKLAND - MACOMB

A Greater Detroit Alliance of Business representative will call on you to follow up • MEMBER ASSOCIATED FOOD DEALERS on your pledge Meanwhile, if you have any questions, please contact Marvin L Brown, executive director of the Alliance, at (313) 964 4000

FOOD & BEVERAGE REPORT. MAY 1990 — 19 Study shows why food prices vary between cities and neighborhoods

By Robert O. Aders departments were represented in the does not change rapidly from year to President, Food Marketing Institute study, including fresh meat and opportunistic price year, a reaffirmation of a conclusion Early in the 1980s, the Economic produce. Prices of individual items made in the 1966 study by the National Research Service of the U.S. were recorded instore by trained gouging is not behind Commission of Food Marketing. Department of Agriculture undertook a enumerators. More than 300,000 food It points out, however, that the study of food prices, aimed at and nonfood prices were collected, and differences in supermarket growth of the price-oriented determining whether there is substance there were three separate price supermarkets, such as the warehouse to allegations that retailers take collection surveys of the same stores prices. More ordinary market and superwarehouse stores, have advantage of having a dominant and items to avoid the influence of any heightened price competition in many position in localities to increase prices temporary market aberration. A forces are at work here.’ cities and towns during the 1980s. In to consumers beyond what operating separate study was made of store meeting this type of competition, other costs would justify, and why prices in characteristics and labor compensation. such as warehouse stores, which offer stores often provide additional store stores vary between and within cities, While no single study can, once and few customer services. This may seem services to distinguish themselves from even under the same company for all. be said to be the final word on obvious to us, but it hasn’t been the competition. The study also ownership. this subject, this one seems to come the obvious to university and government confirms that there is relative ease of This kind of study has been done closest of any made so far. researchers. entry in the supermarket industry. before, but the previous research has It provides convincing data to Other interesting conclusions drawn Niche marketing has become a buzz generally been too limited to lead to support the conclusion that by the USDA from the study include phrase in recent years, and the newly conclusive results. opportunistic price gouging is not that food prices in cities where a released study underscores its role in The earlier surveys were alleged to behind differences in supermarket relatively small number of companies today’s marketplace. have had basic flaws that made the prices. More ordinary market forces are dominate the market do not have store No one type of store suits all conclusions drawn from them suspect. at work here. prices significantly different from those customers, and a retailer cannot take Criticisms include the contention that Statistical evidence gathered show where a relatively large number of advantage of having the largest market the cities, companies and stores studied that the market leader in most areas companies compete for sales. share to set prices higher than costs were not representative of the general does not have the highest prices in the Another finding indicates that, in justify and expect to be in business marketplace, items selected were not area. Most often, its prices are high-growth areas, where there has long. representative of food and nonfood somewhere in the middle. been large-scale entry by food-store There are always competitors supermarket products, and important What does affect a store's prices companies in the previous five-year around, waiting to move in with price determinants were omitted from are its physical size, the type of store it period, slightly higher supermarket something different, something special the statistical analyses. is (i.e.. customer services offered or not prices have been found than in other and something more appealing — The latest study, which has just offered), its sales volume, and its areas. trying to take the market leadership been released, was carefully designed occupancy costs (rent, utility cost, etc.). Cities where there is strong market themselves. to avoid such weaknesses. All else being equal, larger store rivalry between dominant companies, The new report shows that, as we all The newly released USDA size and higher sales volume are or greater turnover among the stores in know, the retail food business is highly supermarket price survey was made in associated with lower store prices. the area and changing sales shares, have competitive. 28 randomly selected cities, and prices Higher store occupancy costs usually slightly lower prices than other cities. Customers today have many were collected from 616 supermarkets, result in higher prices. Likewise, as a This study sums up the findings by options to go elsewhere to shop if they representing 321 supermarket rule, stores offering more store observing that the basic competitive become dissatisfied with their current companies. All supermarket services, have higher prices than stores. environment facing food retailing firms food store. What are your legal requirements governing the hiring of minors? There have been a number of injurious to the minor’s health or work permit. Are there any exemptions to the legal questions regarding the legal personal well-being. Standards are Can a work permit be used as requirements for high school requirements governing the established and cannot be deviated from evidence of age? graduates and GED holders? employment of minors. You can get unless granted by the Director of Labor. Yes, a work permit shall be Yes, the law specifies exemptions (Rules are available and should be more information from the U.S. conclusive evidence of the age of the for minors 16 and 17 years old. Department of Labor, Employment obtained regarding hazardous minor. What happens if a company does not Standards Admission, Wage and Hour occupations.) Are there rules to the number of comply with the requirements? Division and the Michigan Department Are work permits needed for days/hours which minors are The Michigan Department of Labor of Labor, Bureau of Employment minors? permitted to work? enforces this act and will assist in the Standards. Yes, a minor shall not be employed Yes, there specific rules for the prosecution for violations of this law; The information contained in the in an occupation regulated by the Youth number of days and hours which can be they do not have the authority to enter following question-and-answer format Employment Standard Act until the worked by minors under the age of 16. and inspect any facility where a minor was developed from the Michigan person proposing to employ a minor The Michigan law even specifies the may be employed. Depending on what Department of Labor Youth Standard obtains from the minor and keeps on times for meals and rest periods and section of the law was violated, it could Act 90 of 1978. file, at the place of employment, a that work time records be kept in or result in a misdemeanor and/or felony copy of the work permit or a temporary What is a minor? about the work premises. charge. It is very important to note this A minor in defined as a person permit. can mean imprisonment and should not Can a minor handle cash? under 18 years of age. Who issues the work permit? be viewed as an infraction of a A minor shall not be employed in The permit shall be issued by the Department of Labor standard which Is there a minimum age for an occupation that involves a cash issuing officer of the school district in usually generates a citation and/or fine. employment? transaction after sunset or 8 p.m., the which the minor resides. A copy of Yes, the minimum age for whichever comes first, this rule is Are there special provisions for the work permit shall be placed in the employment of minors is 14 years. waived if an employer or other workers’ compensation benefits? minor's permanent school file as long There are exceptions to the law for employee, 18 years of age or older, is Yes, if a minor in injured during the as the minor is employed. younger minors to work. present during those hours. course of employment and the minor Can a work permit be revoked? receives workers’ compensation Are there prohibited occupations in Are there posting requirements? Yes, factors such as poor school benefits, those benefits will be doubled which a minor cannot work? Yes, in Michigan poster #WH-M-46 Yes, a minor shall not be employed attendance, decline in performance in if a proper work permit is not secured (6/78), with sections 10, 11, 12 and prior to employment. in, about, or in connection with an school and a violation of federal or state 12A. occupation which is hazardous or laws result in the revocation of the

20 — FOOD & BEVERAGE REPORT, MAY 1990 with other state computer functions. deployment of POS terminals to better AFD staff EBT A new project that combines benefit serve their credit and debit card programs began operating by customers. Once a substantial Joseph D. Sarafa • From page 18 November in Baltimore. Some 5,000 percentage of food retailers in an area Executive Director • Grocers didn’t have to count, sort, Judy Mansur households use EBT cards at more than have a system up and running, the and bundle food stamps and take them Blue Cross/Blue Shield 160 stores to get food stamp benefits. addition of EBT is a fairly simple to the bank. The accounting work was Coupon Redemption They use the same cards at automatic process. done for them instantly at the time the Debbie Pagett teller machines to draw benefits from The farm bill currently under sale was made. Recent studies show Bookkeeping Worker’s the federal Aid to Families with consideration on Capitol Hill Comp. Program that costs for retailers participating in Dependent Children program, and from encourages new approaches to EBT Chris Zebari the Food Stamp Program cropped (25 the state Child Support Enforcement systems. FNS included proposal that Membership percent, from $24 per $ l ,000 to $ 18 per program. By sharing equipment with would make it easier for states to Jim Larges $1,000) when they used EBT. The Computer System other government benefit programs, and conduct demonstration projects, to system also eliminated cash change in Membership Records by using commercial equipment already tailor projects to their own special food stamp transactions, another Deborah Cooper in place, the Baltimore project should needs, and to expedite testing of headache for retailers. Communications • Bankers and federal accountants operate relatively inexpensively. demonstration systems that are now in Vicky Zuschnitt Though we are making progress, the works. The bill also recommends Special Events also liked automatic accounting and not electronic systems still cost more to allowing states by April 1992 to Heather Heinrichs having to handle food stamp coupons. operate than the old system of paper undertake their own projects, making Receptionist • Substituting EBT for paper food If we can help you, please call the coupons. So another generation of EBT stamps reduce opportunities for fraud use of knowledge gained through staff members at (313) 557-9600 pilot projects is in the works, with the and abuse, and eliminated printing, existing efforts, provided they can or (1-800) 66-66-AFD. goal of reducing costs and improving handling, transporting and security assure that their projects will cost no operations still further. Systems in concerns. Finally, since food stamps are more than current insurance systems. Albuquerque, N.M. and Minneapolis Officers destroyed after use, it eliminated Where are we going with this? Will are due to begin operating this year. destruction costs. EBT eventually supplant the paper food Amir Al-Naimi Other states are also eager to utilize There was. of course, a downside. It stamps? The answer right now is Chairman this technology. We currently have cost more to issue food stamp benefits maybe. It may be that there will always Metro-Politan, Inc under review proposals from New Sam Yono in Reading's EBT project than it did to be some need for paper food stamps in Jersey and Iowa, along with a request Immediate Past Chairman issue them using the conventional areas where EBT technology is not from Pennsylvania to expand the available. Gala Food Store system. One reason it was so expensive Frank Arcori Reading project. Colorado. Georgia, While EBT faces many challenges, was that the Reading computer system Vice Chairman was built from the ground up to be used Texas. Mississippi. Utah, Oklahoma, it also shows great promise and Jerry Yono only for issuing food stamp benefits. and South Carolina have expressed an growing acceptance as an alternative to Vice Chairman Our next goal in Reading is to cut interest in EBT. Maine. New food stamp coupons. The potential to Tony Munaco Vice Chairman costs. We can do that by piggybacking Hampshire and Vermont are lower costs and increase revenues for considering a joint project. food retailers is particularly exciting. Bill Viviano on existing commercial equipment, by Treasurer using the electronic cards to issue more FNS is exploring various We are very optimistic that EBT will approaches to EBT and hopes to test Mel Larsen than one kind of government benefit, ultimately be a great asset to the Food Secretary and through economies of scale from a these in the months and years ahead. Stamp Program. In this regard, we look larger population base. Reading is One very promising approach is to forward to working with Michigan food already working toward that goal, and piggyback EBT on existing commercial dealers in the years ahead. Directors Retail Members EFT/POS systems. Food retailers in has reduced its costs dramatically by Cal Abbo integrating the EBT computer system many states are considering the King Cole Markets Sam Dallo In N' Out Fred Dally Program The link between the project and the will seek 200 full-time job pledges The Medicine Chest Compact has already been described. (twice the needed number to provide Terry Farida • From page 19 The Compact’s reform efforts, those some options for the graduates and the Valu Center Markets government into the joint venture. The which the project seeks to parallel in employers). The campaign will also Richard George Wine Barrel Liquor & Deli job pledge of the Detroit Compact is a the adult training market, are driven in seek 300 summer job slots. major force in motivating the students Mark Karmo large part by the pledge of jobs to The campaign is not designed to be Royal Food Center and in setting the pace for and the graduates who meet the definition of bashful; it will not be trying to sell Thom Welch direction of school reform. "job-readiness." Business was able to marginal job candidates. It will be Hollywood SuperMarket As noted above, the project did not accomplish much with the “pledge.” marketing some of the best graduates of Frank Tumbarello desire to reinvent the wheel. Project Now it must actually deliver the jobs. the Detroit Public Schools, candidates Frank's Party Store leadership recognized early that the In June of 1990, the one Compact who will be certified job ready in Tom Simaan stated mission of the MESC Job high school will produce approximately LaFayette Towers SuperMarket accordance with business-defined Nabby Yono Service was to be a clearing house. 125 job-ready graduates — graduates criteria. X-Tra Foods When the Chamber approached the who have fully met all the The campaign will be executed by state with a modest request for requirements. The high school will also teams organized by industry. Retailers assistance, the stale, through the Labor produce some 200-250 sophomores and will talk to retailers; manufacturers will Directors General Department, responded with a proposal juniors who are "on-target" for meeting talk to manufacturers. Members for a three-year joint venture designed the standards. The business community Phase II is designed to follow using Jerry Inman to reshape the Job Service in Detroit has pledged to provide full-time jobs the same industry team concept. This Paul Inman & Associates and to accomplish the underlying for job-ready graduates (summer jobs phase, however, is not designed as a Mel Larsen mission of the project. for the job-ready graduates who are one-time push; rather, it is intended to Mel Larsen Distributing, Inc. The joint venture agreement was college-ready and college bound) and become a regular part of the employer Barbara Weiss Street signed by the state and the Chamber in summer jobs for the “on-target" community’s job recruitment efforts. The Paddington Corp. Ron Paradoski September of 1989. It committed the students. The estimated job needs can The job orders phase will be pooled Coca-Cola Bottlers state to reshaping the Job Service be summarized as: to increase the ability of employers as a offices in Detroit into models with the Louis Stephen 75-100 full-time jobs group to communicate their job Stephen's Nu-Ad, Inc. assistance of the business community. 25-50 summer jobs for the college requirements and to get education and James Bellanca Jr. The state also became an active partner bound training providers to deliver according Legal Counsel in the project's efforts to increase the 200-250 summer jobs for 16 and 17 to those specifications. Bellanca, Beattie & Delisle number of job-ready candidates and to year olds their successful placement into jobs. The initial solicitation campaign

FOOD & BEVERAGE REPORT. MaY 1990 - 21 LIQUOR LICENSE VIOLATIONS

Licensee: Thomas E. McNeal does not appear on the corporation (or more than 10% Licensee: 2nd Potential, Inc. consumption on the premises, d/b/a Chip Dog Party Store license. (3) From February of of the total interest in the d/b/a Bottoms Up to be removed from said 2280 St. Clair Ave. 1989 to the present time, failed limited partnership) during a 1271 Holton licensed premise by one Detroit. Ml 48214 to maintain records sufficient to licensing year, without prior Muskegon, Ml 49455 Robert M. Foster. Charge: (1) Allow the determine ownership of the approval of the Michigan Charge: (1) Permit its Hearing held: Acknowledged consumption of alcoholic liquor licensed business and to whom Liquor Control Commission. premises to be occupied by Comm, order: $200 fine due on the license premises. (2) the profits or losses of the Hearing held: Acknowledged. persons other than itself or its March 5,1990. Have on the licensed premises business accrue. Comm, order: $300 fine on working bona fide employees, an open container of beer. Hearing held: Dec. 7, 1989, each count due March 5, 1990. to wit; Michael Christopher Licensee: Charles Roy Gates Hearing held: Dec. 11,1989, Lansing Also, suspended as of April 1, Chidester and/or Marc Sarah Faye Gates Lincoln Park Comm, order: (1 & 2) $150 1990 unless proper licensed Galbreath and/or Brian Jeffrey Bettie Kay McGowan Comm, order: (1 & 2) fine on each count; and corporation is in full Davis, between the hours of 2 431 East Congress dismissed suspension as of June 1, 1990 compliance with MLCC rules a.m. and 7 a.m. (3) Permit the Detroit, Ml 48226 will be waived if proper and regulations regarding this consumption of alcoholic liquor Charge: (1) Sell, furnish or Licensee: Ralph E. Schulte Licensee assumes full stock transfer. upon the licensed premises by give away alcoholic liquor to a d/b/a The Loading Zone proprietary control to the one Michael Christopher person, one Laura Kimball 5157 S. Telegraph satisfaction of the Licensee: Little Super & Deli, Chidester and/or Marc Waterman, who had not then Dearborn Heights. Ml 48127 Commissioner, or if transferred Inc. Galbreath and/or Brian Jeffrey attained the age of 21 years. Charge: One Ralph E. Schulte to person(s) or corporation d/b/a Little Super & Deli Davis, between the hours of (2) Allow a person, one Laura was allowed to be on the approved by MLCC. (3) 1007 Main 2:30 a.m. and 7 a.m. (4) Kimball Waterman, who had licensed premises in an Dismissed. St. Joseph, Ml 49085 Refuse, fail or neglect to not then attained the age of 21 intoxicated condition. Charge: Sell, furnish or give cooperate with law years to consume or possess Hearing held: Sept. 6. 1989 Licensee: Robert D. Baily away alcoholic liquor to a enforcement officers and/or did alcoholic liquor upon their Appeal order: $300 fine with d/b/a Harry's Food & Spirits person, one Jeffrey Schadler, hinder or obstruct law licensed premises. half waived. Rescinded and 10026 West M-32 who had not then attained the enforcement officers in the Hearing held: Acknowledged. charge dismissed. Herron, Ml 49744 age of 21 years. course of making an inspection Comm, order: $300 fine on Charge: (1,2, 3 & 4) Sell, offer Hearing held: Jan. 8, 1990, or investigation of or on the each count due March 26, Licensee: Open Pantry Food for sale, accept, furnish, Boroda licensed premises, while 1990 Marts of Michigan, Inc. possess, or allow consumption Comm. Order: $200 fine due enforcing the provisions of the d/b/a Hop- In of alcoholic liquor on the March 5, 1990. Michigan Liquor Control Act. Licensee: Francena Iverson 2062 S. Custer and licensed premises, which has Hearing held: Acknowledged. d/b/a F & S Market 540 N. Telegraph not been purchased by the Licensee: Foxx, Inc. Comm, order: (1 & 4) $200 18514 Ryan Monroe, Ml 48161 licensee from the Commission, d/b/a O’Tays fine on each count due March Detroit, Ml 48234 1129 Greenwood or a licensee of the 2802 S. 11th 1 2 , 1990. ( 2& 3) Dismissed. -Charge: Sell, furnish or give Jackson, Ml 49203 Commission authorized to sell Niles, Ml 49120 away alcoholic liquor to a Charge: (1) Sell or transfer its alcoholic liquor to a retail Charge: (1) Sell or transfer its Licensee: F.J. Mohar, Ltd. person, one Harold C. Renfroe license or an interest in the licensee. (5) Sell, offer for sale, license or an interest in the d/b/a Mohar's I.G.A. Jr., who had not then attained license to Farr View, Ltd., expose for sale, or possess a license to Norman Golba 200 Tin the age of 21 years. without prior approval of the bottle of vodka, which was and/or John Sims and/or David Ontonagon, Ml 49953 Hearing held: Acknowledged. Michigan Liquor Control adulterated or misbranded or A. Lekarczk and/or Chris Charge: (1) On or about Feb. Comm, order: $200 fine due Commission. (2) Allow a the bottle containing said Mouras, without the prior 28, 1989, sell or transfer its March 26, 1990. person, one Farr View, Ltd., spirits was refilled. approval of the Michigan licenses or an interest in the whose name doesn’t appear on Hearing held: Acknowledged Liquor Control Commission. (2, licenses to Gateway Foods, Licensee: Cervi Investments, the license, to derive use or to Comm, order: (1 & 5) $200 3, 4, 5 & 6) Obtain a license in Inc., a Wisconsin corporation Inc. benefit from the license. fine on each count due March its name for the use and and/or Gateway Foods of d/b/a Maria's Italian Bakery Hearing held: Oct. 4, 1989, 5, 1990. (2, 3 & 4) Merged with benefit of another person, one Minnesota, Inc., a Minnesota 3344 S. Grove Jackson (1) Norman Golba and/or John corporation, and/or Campioni Ypsilanti, Ml 48197 Comm, order: Suspension as Sims and/or David A. Lekarczk Enterprises, Inc., a corporation, Charge: Sometime prior to of May 1,1990 waived, if Licensee: Health-Wise and/or Chris Mouras, whose without prior approval of the July 6, 1989, the above named proper Licensee assumes full Enterprises, Inc. name does not appear on the MLCC. (2) On or about April licensee did itself, or by its proprietary control to the d/b/a Hartland Woods license 19, 1989, obtain licenses in its agent, clerk or employee: sell satisfaction of the Party Store Hearing held: Jan. 9, 1990, name for the use and benefit of or transfer its license or an Commissioner, or if transferred Hartland Woods Square Baroda another person, one Gateway interest in the license to SMN, to person(s) or corporation Shopping Comm, order: Revoked. Foods, Inc. a Wisconsin Inc., a corporation, without the approved by MLCC. 9572-9516-9520 Highland corporation and/or Gateway prior approval of the Michigan Howell, Ml 48843 Licensee: RGS, Inc. Foods of Minnesota, Inc., a Liquor Control Commission. Licensee: Garbo-ko, Inc. Charge: Sell, furnish or give d/b/a Pro Quick Mart Minnesota corporation and/or (2) Sometime prior to July 6, Joseph M. Lynch, co-licensee away alcoholic liquor to a Stevensville Campioni Enterprises, Inc., a 1989, the above named d/b/a 7-Eleven Store #20 person, one Jonathan Donald 5515 Red Arrow Highway corporation, whose name does licensee did itself, or by its 130 Perry Road Agrusa, who had not then Stevensville, Ml 49127 not appear on the licenses. agent, clerk or employee: allow Grand Blanc, Ml 48439 attained the age of 21 years. Charge: Sell, furnish or give Hearing held: Acknowledged a person, one SMN, Inc., a Charge: Sell, furnish or give Hearing held: Acknowledged away alcoholic liquor to a Comm, order: (1 & 2) $300 license, to derive use or benefit away alcoholic liquor to a Comm, order: $650 fine due ; person, one Jeffrey Schadler fine on each count due March from the license. person, one Thomas Robert March 5, 1990. who had not then attained the 1 2 , 1990 and a 14-day Hearing held: Jan. 1 6, 1990, Jeffrey, who had not then age of 21 years. suspension. Sterling Heights attained the age of 21 years. Licensee: Health-Wise Hearing held: Jan. 8, 1990, Comm, order: $150 fine on Hearing held: Acknowledged Enterprises. Inc. Baroda Licensee: North Sky Inc. each count due March 26, Comm. Order: $500 fine due d/b/a Hartland Woods Comm, order: $650 fine due d/b/a Sky McFly’s 1990. May 19, 1990 Party Store March 5, 1990 301 Tone Hartland Woods Square Sault Ste. Marie, Ml 49788 Licensee: L&L Wine & Liquor Licensee: Barbara J. Drudi Shopping Licensee: Lake Shore Charge: Sell, furnish or give Corp., Tyfield Importers, R & M and Thomas G. Drudi 9512-9516-9520 Highland Distributing, Inc. away alcoholic liquor to a Liquor Company d/b/a Convenient Food Mart Howell, Ml 48843 d/b/a Lake Shore Distributing person, one Alan William d/b/a Wine World International 8060 Miller Charge: (1) On or about Oct. 5209 Washington Ave. Bouschor, who had not then 1150 W. Maple Swartz Creek, Ml 48473 11, 1989 and/or Oct. 13, 1989, St. Joseph, Ml 49085 attained the age of 21 years. Troy, Ml 48084 Charge: (1) On or about sell or transfer stock in the Charge: The stockholder in the Hearing held: Acknowledged Charge: On or about May 4, February of 1989, sell or licensed corporation form above-named licensed Comm, order: $200 fine due 1988, give aid and assistance transfer its license or an stockholder Farouk S. Jajo to corporation, Robert Bender, March 12, 1990 to wit: a $100 gift certificate to interest in the license to Dru- Sami Zia Gago, without the was convicted for the Ron Ledger, manager of Del, Inc., without the prior prior approval of the Michigan excessive use of alcoholic Licensee: Dennis Leo Brunelle Bottles and Basket Shoppe, approval of MLCC. (2) On or Liquor Control Commission. (2) liquor, to wit; impaired driving. d/b/a Gabby's Inc., 6535 Telegraph, about April 21,1989, obtain a On or about Oct. 11, 1989. Hearing held: Jan. 9, 1990, 1514 A Putnam Birmingham, Ml. license in its name for the use and/or Oct. 13, 1989 transfer in Baroda Wakefield, Ml 49968 Hearing held: Acknowledged. and benefit of another person, the aggregate more than 10% Comm, order: $300 fine due Charge: Permit a quantity of Comm, order: $100 fine due Dru-Del, Inc., whose name of the outstanding stock of the March 5, 1990 alcoholic liquor, sold for March 26, 1990.

22 — FOOD & BEVERAGE REPORT. MAY 1990 SUPPORT THESE AFD SUPPLIER MEMBERS

BAKERIES: M clnerney-M iller B rothers 833-4800 The Beverage Journal 287-9140 Great Lake Fish A Seafood 368-601 Archway Cookies (616)692-6211 Qualm ann Quality E gg C om pany 468-0351 WDIV-TV4 222-0643 Hubert D istributors, Inc 858-23- Awrey B akeries, Inc. 522-1100 FISH & SEAFOOD: WJBK-TV2 557-9000 Jerusalem Falafil Mtg. 595-854 C A C D istributors 283-8693 H am ilton F ish Com pany, Inc 832-6100 WKSG "K ISS-FM ” 792-6600 Jindo Sp ecialty Foods, Inc. 852-19: Continental B aking Co. 868-5600 M ichigan Food S a les 882-7779 WW J-AM/W JOI-FM 222-2636 J. L ew is Cooper Com pany 835-64( G eneral B iscuit B rands 352-4343 Salasnek F ish eries. Inc. 567-2000 NON FOOD DISTRIBUTORS: K ap’s W holesale Food S erv ices 961-654 H ostess Cakes 868-5600 Standard F ish D ist 871-1115 D .M .F . Bait C om pany 681-0049 K A K Brokers B a rem a n ’s 537-26v Koepplinger B akeries. Inc. 967-2020 Tallman Fisheries (906)341-5887 G ibralter N ational Corporation 491-3500 K ram er Food Com pany 585-814 S & M B iscuit D istributing 893-4747 FLORIST: Ludington News Company, Inc. 925-7600 Lipari Foods 469-0U T aystee B akeries 476-0201 Livernois-D avison Florist 933-0081 Sandler-Stone Com pany 333-4300 M A B Distributing Company 89342i V eri-Best Baking Company 398-4200 FRESH PRODUCE: W arrior M artial A rts Supplies 865-0111 M clnerney-M iller B ros. 833-866 Wonder Bread 963-2330 Faro V itale & Sons, Inc 393-2200 OFFICE SUPPLIES: M etro G rocery. Inc. 87140C BANKS: M ichigan R epacking & Produce 841-0303 City O ffice Supplies 885-5402 M etro P ack in g C om pany 259-887 M adison N ational Bank 548-2900 Tony Serra A Sons Produce 758-0791 POTATO CHIPS/NUTS/SNACKS: Mel Larsen D istributors, Inc. 873-101 M ichigan N ational Bank 489-9100 V itale T erm inal S ales 393-2200 C ain's P otato Chips 756-0150 M iesel/S y sco F ood S ervice 397-799 BEVERAGES: ICE PRODUCTS: Detroit Popcorn Company 531-9200 M. A M. B read D istributors 235-664 Adolph Coors Company 540-0654 G reat Lakes Ice 774-9200 E xp ress D istributors 853-7733 M ucky Duck M ustar Co. 683-575 Anheuser-Busch, Inc. 354-1860 M idwest Ice Corporation 868-8800 Frito-Lay, Inc. 287-9477 N ational W holesale F oods 841-773 Bellino Quality B everages, Inc. 946-6300 New City Ice Co. 485-0430 J a y ’s Foods, Inc 946-4024 Norquick D istributors 522-100 Central D istributors of B eer 946-6250 INSECT CONTROL: Kar-Nut P roducts C om pany 541-7870 Northern M ichigan Food S erv ices 478-620 Coca-Cola Bottlers of Detroit 585-1248 R ose E xterm inators 588-1005 N ichlas D istributors 571-2447 N orthw est Food Co. o f M ich 368-250 E verfresh Juice Company 755-9500 INSURANCE PENSION PLANS: V ariety Nut & D ate Company 268-4900 Oak D istributing C om pany 674-317 F aygo B everages, Inc. 925-1600 A lpham erica Insurance A gency 263-1158 Vitner Snacks 368-2447 Quick Foods Company 546488 G Heileman Brewing Co (414)7962540 Blue Cross/Blue Shield 4862172 PROMOTION/ADVERTISING: Rainbow E thnic A Sp ecialty Foods 646-061 G eneral Wine A Liquor 383-5040 Capital Insurance Group 354-6110 Action A dvertising D istributors 964-4600 R askin F oods 759-311. Hiram Walker, Inc. 6260575 Creative R isk M anagem ent Corp. 792-6355 A m erican M ailers 842-4000 Ray Weeks A Company 727-2521 House of Seagram 262-1375 Financial Guardian, Inc 641-0900 G atew ay Outdoor A dvertising 544-0200 Rich Plan of Michigan 293-0904 Hubert D istributors, Inc. 858-2340 Financial A Mktg. E nterprises 547-2813 Haan Display Sign Service (616)243-3223 Sardies Wholesale Lumber 893-767 Cooper/W ieferm an Company 835-6400 Frank P. M cBride, Jr., Inc 445-2300 Orient Printing & A dvertising 547-7474 Scot Lad Foods, Inc. (419)228-314: Miller Brewing Company (414)259-9444 Gadaleto. R am sby A A ssoc (517) 351-7375 PJM Printing 535-6400 Sena Snacks A Vending, Inc. 740-644- P acific O cean Pop Company 591-2560 Jackson Park A gency 381-7000 Stanley's A dvertising S ervice 961-7177 Sherwood Food Distributors 366-310( Paddington Corp 345-5250 K.A Tappan & A ssociates 344-2500 Stephen's NU-Ad, Inc 777-6823 Spartan Stores, Inc. (616)455-140( Pepsi-Cola Bottling Group 641-7888 Rocky Husaynu A Associates 3563400 REAL ESTATE: State Wholesale Grocers 567-765-; Pow ers D istributing, Inc 682-2010 Rollins Burdick Hunter 962-6442 K ryszak E nterprises 362-1668 Super Food S ervices (517)777-1891 R M. G illigan, Inc 553-9440 Sun Financial Group 350-3400 O R illey R ealty & Investm ents 689-8844 Trepco Ltd. 546-3661 Royal Crown Cola (616)392-2468 M itzel A gency, Inc. 773-8600 Sarafa R ealty 851-5704 T ri-State Cash A Carry (517)789-6201 Serv-U-M abc Corporation 528-0694 M onroe-George A gency 646-0311 SERVICES W arehouse Club Inc 532-0625 Seven-Up Bottling Company 937-3500 North Pointe Insurance 358-1171 A & A M anagem ent S ervices 559-7202 W holesale H ouse Inc 846-6209 St Julian Wine Co . Inc ’ '616)657-5568 INYENTORY/BOOKEEPING/TAXES: Akram Nam ou, C P A 557-9030 Wine D im ensions 465-5700 Stroh Brewery Company 446-2000 Abacus Inventory S p ecialists 651-9161 At Your Service, Ltd 887-0628 W olverine Food S ystem s 229-9070 Towne Club B everages 756-4880 Goh's Inventory S ervice 353-5033 Central Alarm Signal, Inc 884-8900 W olverine C igar C om pany 554-2033 Vernors, Inc 833-8500 M enczer A U rcheck P C. 356-1620 Checkpoint S ystem s 592-8300 ASSOCIATES: Viviano Wine Im porters. Inc 883-1600 Quality Inventory Specialists 771-9526 Detroit Edison Company 323-7786 AAA Pallet Company 756-3555 Warner Vineyards (616)657-3165 George R Sham ie, J R ., P C. 474-2000 Ellison R efrigeration 399-9656 ABC A T Inc ' 855-8882 BROKKRS/RKPRESENTATIYES. MANUFACTURERS: Guardian Armored Security 868-1500 Alan-Dean A Com pany. Inc 886-6116 A cm e Food B rokerage 968-0300 Absopure W ater Company 358-1460 Jam Sound S p ecialists 545-9912 Alpha I Ltd. (610<962-6808 Ameri-Con. Inc (512)790-0047 B erm e A Sons, Inc. 943-3437 J.R . M arketing A Prom otions 296-2246 A m erican D airy A sso. (S' <349-8923 Arlano Food Brokers 833-8686 Carnation Company 851-8480 Marketplace Services 5574500 American Synergistics, Inc 4274444 Bob Arnold A A ssociates 646-0578 Del M onte Sales Company 968-1111 M ichigan Cash R egister 545-8660 Bethkay 789-2684 Chuck Bateheller Company 559-2422 Don's Chuck Wagon Products 771-9410 N ational Exposition Service 865-1000 B om arke Corporation 342-1679 City Foods B rokerage Company 894-3000 General Mills, Inc 642-2894 Pappas Cutlery Grinding 965-3872 Bureau of S tate Lottery u>17)887-6820 Conrady-Greeson Company 362-0800 Groeb F arm s (517)467-7609 Point of S ale D em o Service 887-2510 Canbasback Food M anagem ent 727-1173 Estabrooks M arketing (517) 548-3750 Ham ilton Meat P ie Co 582-2028 Retail D em onstrators 846-7090 Danor Corporation 557-3476 F ive G's Food Brokers 765-8363 Hills, Bros Coffee 851-5774 Superm arket D evelopm ent Corp 521-5150 D ella A dm inistration Group (616>962-6808 J B Novak A A ssociates 752-6453 H illshire F arm s A Kahn's 851-5774 S ales Control System s 356-0700 D erda Brothers 350-3430 Jam es K Tam akian Company 424-8500 Home S tyle Foods, Inc 874-3250 Telecheck M ichigan, Inc 354-5000 Detroit International Corp. 342-1679 Marks A G oergens. Inc 354-1600 K ahl Enterprises, Inc 527-7240 Tri-County R estaurant S ervice 445-0653 Dino's Emmet One Corporation 3414522 McMahon A M cDonald,. Inc 477-7182 Kraft Foods 261-2800 Toledo Seal R eliance E lectric 454-1472 First E xchange 737-5150 Northland M arketing 353-0222 Lancia Ravo Foods (416)766-7631 Vend-A-Matic 585-7700 G am m a III Ltd (616)962-6808 Paul Inman Associates 6268300 Milton Chili Company 585-0300 SPICES A EXTRACTS: G eneral Provision 393-1900 Pfeister Company 591-1900 Nabisco, Inc 478-1400 R afal Spice Company 259-6373 Great Lakes M ushroom Co-Op 757-0888 Sahakian Company 968-4800 Philip Morris U. S. A. 4869494 STORE SUPPLIERS/EQU1PMKNT H A S D istributors 842-6204 Stark A Company 851-5700 P rince M acaroni of M ichigan 772-0900 A m en-P ro System s Corp. (419) 693-3276 Herm an Rubin S ales Co 354-6433 United Salvage Company 772-0951 Proelor A G am ble 336-2800 Belm ont Paper A Bag Company 491-6550 H erm iz A Son, Inc. 491-5252 VanDusen, Hall, Stevens. Inc 567-3865 Red P elican Food Products 921-2500 Black Jack Iron Works 893-7677 Hubbard A piaries (517)467-2051 CANDY & TOBACCO: Stehouwer Frozen Foods (616)453-2471 Brehm Broaster Sales (517)427-5858 James Karoub A Associates (517)482-5000 Central Sales 843-6600 MEAT PRODUCERS/PACKERS Bunzi-Detroit 334-5900 Kindred Corporation 625-7212 E astern Market Candy/Tobacco 567-4604 Bob E vans F arm s 422-8000 Central Alarm Signel 864-8900 Lloyd's A A ssoc 356-0172 W olverine Cigar Company 554 2033 Flint Sausage Works 239-3179 DCI Food Equipm ent 369-1666 Lauren K achigian D istributors 843-2898 CATERING/HALLS: Guzzardo W holesale M eals 833-3555 Gardell Company 567-5515 Lubin Schwartz A G oldm an 332-3100 Gourmet House. Inc 771-0300 Hartig M eals 832-2080 H Raade o Inc 933-6323 M arine City D airy Queen 765-5096 Penna's of Sterling 978-3880 Hygrade Food Produces 464 2400 Hobart Corporation 697-7060 M cCulloch A Co , P C. 5444400 Phil's Catering 751-0751 Kowalski Sausage Company 837-8200 K asco Atlantic Service Co (800) 631-7650 M ichigan Veal C om m ittee <616)861-5222 Southfield Manor 352-9020 LKL Packing, Inc 833-1590 MM I Distributing 5824400 Miko A A ssoc 776-0851 CONSULTANTS: M axwell Foods. Inc 923-9000 Market M echanical Services 546-6840 Motor City Food Truck 591-1234 Bellanca, Beattie, D elisle 964-4200 Naser International W holesale 464-7053 Michigan B akery Supply Co 571-3300 P epper Tree Inc 349-5055 National Exposition Services 865-1000 National Chili Company 365-5611 Midwest Butcher A D eli Supply 332-5650 R I) K E nterprises, Inc 979 4493 DAIRY PRODUCTS Oscar Mayer & Company 464-9400 Party M aker 281-1751 Red Carpel Keim 557-7700 Borden Company . The 583 9191 Osten MeaLs 963-9660 Refrigeration E ngineering (616) 453-2441 Shonco Inc 422-1570 C F Burger Creamery 837-6000 Potok Packing Company 893-4228 Superb Vacuum Cleaners 491 3900 Slam 's Video 255-7526 London's Farm Dairy 984 5111 Ray Weeks A Sons Company 727-3535 Winston S ales A Services 739-3210 Sullivan - Gregory 332-30G0 Melody Farm s Dairy Company 525-4000 Sheldon s Packing House (517) 834-2218 WAREHOUSES Tandie Inc 522-3311 Stroh s Ice Cream 568-5106 Smith Meal Packing. Inc 985-5900 All American Cash Register 5614141 Tee Corporation 350-3430 Tom Davis & Sons D a m 583-0540 Swift E ckrich 937 2266 Boag Cold Storage W arehouse 964-3069 TraveJco Incentive Program s. Inc 737-8822 DELICATESSEN. Thom Apple Valley Inc 552 0700 WHOLESALERS/KOOD DISTRIBUTORS Dudek Deli Foods 891 5226 VII’ International 885-2.335 Winter Sausage Mfg Inc 777 9080 Abner Wolfe Meadow dale Foods. Inc 943 3437 Plus Marketing 934 0880 W A Taylor A Co 6896941 Wolverine Packing Company 568 1900 A ssociated Bakeries Company 924-8520 Row Bur Distributors 825 2616 Wilcden A A ssoc 588 2358 MEDIA Bremer Sugar 610 772 9100 DENTISTS Ypsildnli Food Co-Op 483-1520 Arab & Chaldean TV-62 Show 152 1 343 Cary's Self Serve (616) 544-6328 Richard E Klein. DDS. PC 547 2910 Daily Tribune 541 3000 Central Distributors 946 6250 EGGS & POULTRY Detroit F ree Press 222-6400 Don Lee Distributor. Inc 584 7100 Epco Foods Inc 857-4040 Detroit News 222 2000 D S M Food Products. Inc 491 3333 Capitol Poultry 567-8200 Macomb Daily 296-0800 Eastern Market Wholesaler 259-6161 Lamwood Egg Company 524 9550 Michigan Chronicle 963 5522 Foodland Distributors 523-2177 If you are not listed or need to change your listing Mendelson E gg Company 541-4060 Michigan Grocery News 357-4020 Food Marketing Corporation '219'483 2146 contact Debbie Cooper at 557 9600

FOODS BEVERAGE REPORT. MAY 1990 — 23 HEADQUARTERS OFFICE Saginaw, Mich. Detroit, Mich. Grand Rapids, Mich. 3159 Christy Way 36300 Schoolcraft 3663 Broadm oor S.E. Saginaw , MI 48603 Livonia, MI 48150 Kentwood, MI 49512 (517) 793-8100 (313) 591-1900 (616) 949-7210

The Pfeister Company has been servicing the Michigan market since 1918 with a dedication to “National Brands. Our long term philosophy has been...and still remains...dedicated to our manufacturers and retailers alike.

Grocery Frozen Dairy Health & Beauty Aids Meats Produce Confectionery Deli Food Service

We’ve made a long-term commitment to the Associated Food Dealers of Michigan, so please review this back page each month for messages, thematic ideas and other opportunities.

PFEISTER’S “SUMMER BARBECUE & PICNIC” SUPPLIES MEMORIAL DAY & SUMMER ARE AT HAND - STOCK UP NOW WITH. GROCERY PERISHABLE Dole Pure & Light Juices Nestle Novelties Dole Pineapple Juice Blends Dole Novelties Sundance Juice Sparklers Weight Watchers Novelties Yoo Hoo Chocolate Drink Eskimo Pie HI-C Drinks Vroman Novelties Minute Maid Lemonade Welch’s Grape Juice Drink Welch Orchard Blended Juices Green Giant Corn on Cob Bush’s Baked Beans Jeno’s Pizza Rolls Dole Mandarin Oranges Wilson Hams Dole Pineapple Wilson Hot Dogs Dole Tropical Fruit Salad Kaukauna Cheese Henri’s Salad Dressing Vlasic Deli Dills Star Kist Tuna Weight Watchers Mayo Salad Dressing Vlasic Pickles, Olives, Peppers, & Relishes HBA/G.M Open Pit BBQ Sauces Vaseline Intensive Care Adolph’s Meat Tenderizers & Marinades Suntan Lotion Chinet Paper Plates Fuji Film Glad Wrap Fuji Video Wet Ones Towelettes