December 2007

The IFRA staff wishes you Special and yours all the peace and Immigration Alert: blessings of the season. Employers Must Use New Version of Form I-9 and M-274 by December 7, 2007 The Citizenship and Immigration Services (“USCIS”) has released the new version of the Form I-9, Employment Eligibility Infant Formula Contract Change Verification, and updated the The Department of Human Services will operate its WIC Program companion M-274, Handbook during 2008 using Mead Johnson as its source of "contract" infant formula. for Employers, Instructions for While the type of formula offered to WIC eligible infants will change, the Completing the Form I-9. These minimum stocking requirement for stores will stay the same. The requirement documents are available through can be met with any combination of Enfamil LIPIL and Enfamil ProSobee the “Immigration Forms” section LIPIL powered formula (totaling 27 cans in the aggregate for stores in on the USCIS website: www.uscis. and 18 cans for stores outside Chicago). gov/i-9 and the New Form I-9 (rev. June 5, 2007) and new M-274 Other Mead Johnson formulas accepted through WIC in 2008 are Enfamil (rev. November 1, 2007) can be LactosFree LIPIL, Enfamil Gentlease LIPIL and Enfamil AR LIPIL. downloaded. The IDHS also informed IFRA that soy-based and lactose-free products The USCIS recommends employers manufactured by Ross and Nestle will not be offered to WIC participants use the new Form I-9 immediately, after Feb. 1, 2008. Select therapeutic formulas (classified as "Exempt but indicates the old Form I-9 can Medical Formulas" by the FDA) will continue to be available for infants with be used until December 7, 2007. appropriate medical diagnoses. Employers are urged to begin Because WIC vouchers are printed three months in advance, WIC retailers using the new Form I-9 as soon as will need to carry Ross Products (Similac and Isomil) through the end of possible and certainly on or before January 2008. Beginning February 1, 2008, WIC will utilize the formulas from December 7, 2007, to avoid any Mead Johnson. You may wish to plan your future inventory according to potential compliance problems. these changes. Please call the Association office The rule of thumb for filling WIC orders remains the same: "ONLY if you would like to receive a hard ALLOW WHAT IS PRINTED ON THE FOOD INSTRUMENT." copy of Form I-9. If you have any questions, call IFRA at 1-630-627-8100 or toll free in Illinois at 1-800-624-6712. Card type indicator (color bar) Organ/tissue donor indicator

Secretary of State Announces New Design for Driver's Licenses and State ID Cards

he Office of the Illinois New Security Features Secretary of State will begin All licenses/cards include issuing newly designed driver's Expiration and several new security features that Guilloche T pattern issued dates licenses and state ID cards for persons improve their resistance to tampering of all ages. The new licenses/cards and fraudulent production. These include improved design and enhanced include kinetic movement and color- Date of birth - two locations security features aimed at preventing shifting designs, a UV feature, microtext, fraud or misuse and improving ease of and a laser feature that cannot be state's new First-Person Consent verification. duplicated utilizing standard techniques law, effective January 2006, makes a Illinois driver's licenses and ID cards often used in fraud attempts. person's wishes to be a donor legally were last redesigned in 1998. In 2000, binding. Witnesses or family consent the option of printing Social Security Back of Card is no longer required for donation to occur. numbers on licenses/cards was • The back of all state ID cards eliminated as an important security includes the text: "For Identification • Other items on the back of the measure to protect cardholders from Purposes Only, Not a License to licenses/cards remain the same, but identity theft. Drive." may be relocated. In 2005, the new Temporary Visitor • The writable surface for organ/tissue More detailed information along with Driver's License (TVDL) was donor witness signatures has been sample images of the new cards is implemented as a result of Public Act omitted on all licenses/cards. The available at www.cyberdriveillinois.com. 93-0752. At the same time, Illinois moved to a vertical design for Under 21 driver's licenses and ID cards as another step to prevent underage drinking and Save the Date reduce driver's license/ID card fraud.

New Design Features NGA Annual Convention • Driver's licenses and state ID cards February 5-8, 2008, Paris Las Vegas Hotel have new colors across the top indi- cating the type of license/card: The 2008 NGA Convention will be held Tuesday, February 5, through Friday, — Red: Driver's Licenses and Com- February 8, 2008, at the Paris Las Vegas Hotel in Las Vegas. mercial Driver's Licenses NGA is offering a special group discount whereby every fifth registrant in the — Green: State ID cards group is free. If you plan on attending the NGA Convention, we encourage you — Purple: Temporary Visitor to do so through the IFRA group, so that you will receive a registration discount Driver's Licenses proportional to the number of IFRA registrants. • Other newly designed features aimed Please complete the enclosed NGA registration form in its entirety and mail or at increasing security are the ap- fax to IFRA as soon as possible. Do not send in any payment for the registration pearance of the ghost image of the fees at this time. When completing the registration form, please be sure to fill out photo and inclusion of the date of the section for "Hotel Information," and include your credit card number for the birth in two locations. required first night's deposit. IFRA will invoice you for the registration fee at a • Information on the front of the later date. licenses/cards is the same, but in some instances presented differently If you have any questions or need additional information, please call the IFRA to improve readability and ease of office. verification.

©Illinois Food Retailers Association/Page 2 Legislative Update by Rob Karr, IFRA Legislative Consultant

The following Gas stations - gas stations must provide Smoke Free - Smoking is an overview refueling services to persons with in public places, places of new laws disabilities at no extra charge. This does of employment, and potentially not apply if there is only one person government vehicles is impacting the on duty. A sign, in a prominent location prohibited. Smoking is also prohibited retail industry clearly visible to customers, must be within 15 feet of entrances, exits, taking effect in 2008 that were passed posted by the gas station. The sign shall windows that open, and ventilation this year. The bills are divided into explain how to signal for assistance. intakes of public places. No smoking three segments according to their Public Act 95-0193 signs must be posted. Public Act 95- effective date. Those three segments 0017 are: January 1, 2008, June 1, 2008, and Gift certificates - As of January 1, July 1, 2008. We are providing you with no person shall sell a gift certificate In addition to the laws noted above this information to help you ensure that is subject to an expiration date taking effect January 1st, there are a few compliance. If you would like to take a earlier than five years after the date of more that take effect mid-year. They are: closer look at any of these Public Acts, issuance. Post-purchase fees that reduce you may do so at www.ilga.gov or by the amount on the gift certificate are LAWS TAKING EFFECT JUNE 1, contacting the IFRA office. prohibited. Public Act 95-0525 2008 Immigration #1 - It will be a civil Alcopops - No one may advertise, LAWS TAKING EFFECT rights violation for an employer promote, or market alcopop beverages JANUARY 1, 2008 participating in the Basic Pilot Program within 500 feet of schools, public for employment eligibility confirmation Building codes - establishes in the parks, amusement parks, and places of to refuse to hire, segregate, or act with worship. Public Act 95-0618 Illinois Counties Code and the Illinois respect to recruitment, tenure, privileges, Municipal Code that the building code or conditions of employment without Meth - Authorizes a pilot PSE purchase in effect when a construction permit is following procedures under the Basic database in Williamson County. Provides issued shall be the only building code Pilot Program under the U.S. Social some clarifications in Meth Precursor for the duration of the permit. Public Security Administration and the U.S. Control Act. Public Act 95-0640 Act 95-0512 Department of Employment Security. Wine shipment - Restricts the Public Act 95-0137 (NOTE: This Act Classification - provides that an shipment of wine from out-of-state is the subject of litigation between the individual performing services for a sources. In-state retailers are allowed to State and Federal governments). contractor is deemed to be an employee continue to ship and deliver. Public Act of the contractor unless certain Immigration #2- Employers are 95-0634 conditions are met. Public Act 95-0026 prohibited from enrolling in any Controlled Substances - a prescription Employment Eligibility Verification LAWS TAKING EFFECT JULY 1, monitoring program for Schedule III, System, including the Basic Pilot 2008 IV, and V controlled substances begins. Program, until the U.S. Social Security Mercury Products - No one may No fee shall be charted to prescribers Administration and the U.S. Department sell, offer to sell, or distribute certain or dispensers for access to the of Homeland Security databases are mercury-added products in Illinois. repository of prescription monitoring able to make a determination on 99% of These certain products are largely program information. However, this the tentative non-confirmation notices medical products. Public Act 95-0087 program is contingent upon Federal issued to employers within 3 days, unless funding. Public Act 95-0442 otherwise required by Federal law. Public Motor fuel - Regulates signage on Act 95-0138 (NOTE: This Act is the pumps dispensing bio-diesel or biodiesel subject of litigation between the State fuels. Public Act 95-0381 and Federal governments).

©Illinois Food Retailers Association/Page 3 Congratulations

Central Grocers Honors Joe Caccamo for 52 Years of Dedicated Service his past July, Central Grocers, General Assembly House Resolution William E. Jordan Award Inc., announced the retirement 775. "Whereas" Joe spent 52 years at of President and CEO Joe Central Grocers, State Representative IFRA President Brian Jordan presented T Joe with the Association's highest Caccamo, after 52 years of service to Angelo Saviano offered the House the member-owned grocery cooperative. Resolution, recognizing Joe's many honor— The William E. Jordan Over 800 industry executives, family accomplishments. IFRA's legislative Achievement Award, for his outstanding and friends attended Central's Annual committee thanks Joe and Central leadership and distinguished service to the Banquet, which was dedicated to Joe, Grocers for being a major contributor independent grocers of Illinois. Since its recognizing his unending dedication and to the Association's PAC and for always inception, this honor has been awarded leadership to Central Grocers and to attending Retail Day at the Capitol in the on a very limited basis to individuals who the independent food retailer of Illinois. spring. exemplify the commitment and ideals of The banquet was held at the Carlisle former IFRA President William E. Jordan. in Lombard, Illinois, on November 3, NGA Spirit of America Award Additionally, there were tributes from 2007. IFRA member and Central board Jim Denges, Central's newly appointed President and CEO (see below); John In recognition of his dedication to the member Tony Dal Pra presented Joe, Kotara, Central's Chairman of the Board; Illinois Food Retailers Association and on behalf of the National Grocers and Sharon Walters, Joe's Executive for his support of all independents Association, the NGA Spirit of America Assistant. Joe and Lorraine's daughter, throughout the state, regardless of their Award. This prestigious national Lisa Lombard, gave a humorous and wholesaler affiliation, Joe Caccamo was recognition was presented in recognition heartwarming tribute to her Dad, presented with several tributes: of Joe's 52 years in the grocery industry and as an effective advocate for the including amusing anecdotes about going to the office and warehouse with her Illinois House Resolution independent and cooperative food distribution industry. father. IFRA Past Chairman and Central board IFRA offers its best wishes to Joe and member John Lagestee, Sr., presented Lorraine Caccamo for many happy and Joe with the State of Illinois Ninety-fifth healthy years in retirement.

Jim Denges: Tribute to Joe Caccamo t Jim Denges, President & CEO, Central Grocers, presented the are dedicated to our mission of achieving our goals and following tribute to Joe Caccamo at the Central Grocers Banquet on supporting our members. November 3. Your management style and approach to business will be Over the past 30 years, Joe, you've been my mentor and a model for us in the future. We are extremely grateful my friend. As you mentioned in the video we just watched, that we have been the beneficiaries of your dedication and each day is not without its problems and challenges, but hard work for more than 50 years. throughout, you've always maintained your good humor You are passing on to our members a team for which and your commitment to help whenever the need surfaced. you personally built the foundation and laid the bricks... In fact, the team tradition that you have established at at a time when this company has achieved its highest Central Grocers has helped us to develop a staff of and strongest position in the market where our company longtime employees — one of the most valuable assets competes. On behalf of all of our members, we thank that we can offer our members. you, Joe. You have always told me this, and you understand, better Again, thank you, Joe, and best wishes to you and than most, that growth and success is not just the result Lorraine. Lorraine, for all the years you have supported of one person — but of many people — people who Joe and allowed him to share his time and energy with his other family at Central, we thank you.

©Illinois Food Retailers Association/Page 4 Central Grocers Honors Joe Caccamo

Congratulations

Jim Denges (left) and Brian Jordan (right) present the William E. Jordan Award to Joe Caccamo

Left to right: Jim Denges, Anthony Dal Pra II and John Kotara, present the NGA Spirit of America Award to Joe Caccamo

Joe and Lorraine Caccamo's children, left to right: Joseph Caccamo, Laura Sarfino, Leonardo Caccamo and Lisa Lombard

Joe Caccamo with his wife, Lorraine

©Illinois Food Retailers Association/Page 5 Thank You

Thank You for Supporting this Year's Conference Committee to Review Site Selection and Program for 2008 Illinois Food e want to express our sincere appreciation to everyone Retailers Association who attended the Illinois Food Retailers Association and WGrocery Merchandising Association Annual Conference at Annual Conference the Drury Lane Conference Center in Oakbrook Terrace. We gratefully acknowledge your taking time away from your busy schedule to learn & Expo with co-host and to enjoy the company of fellow industry executives. Grocery We also want to thank the many companies who supported the Merchandising Conference as advertisers, exhibitors and sponsors. Without your support, the IFRA-GMA Conference would not be possible. A listing Association of the Convention Sponsors and Exhibitors can be found below and on the following page.

In the coming weeks, a committee will be formed to review possible locations for the 2008 Conference, as well as the current one- day Conference format. The Association will be reviewing locations in Champaign, as well as locations in the Chicagoland area other than the Drury Lane. We want to make those changes that will have the greatest positive impact on our convention program. Your willingness to share your thoughts with any member of the Board of Directors and/or the Association staff is appreciated. Looking forward to an exciting program in 2008.

Mike Schuette, Schuette Stores Brian Jordan IFRA Chairman IFRA President

Convention Sponsors With most sincere gratitude, we salute the following companies. Thank you for your support.

Platinum Sponsors Diamond Sponsors Silver Sponsors Arthur J. Gallagher Risk Concord/First Data Corp. Certified Grocers Midwest, Inc. Management Services, Inc. Dean Foods Company Merchants Solutions Central Grocers, Inc. Fresh Express Miller Brewing Company Gallagher Benefit Services, Inc. Kraft Foods Sara Lee Bakery Group Grocery Merchandising Prairie Farms Dairy, Inc. Association Illinois Retail Merchants Bronze Sponsors Association Anheuser Busch, Inc. J. P. Morgan/Chase Bank PepsiAmericas Cadbury Schweppes Bottling Group Jays Foods Chicago Baking Company Lewis Bakeries, Inc. SuperValu Midwest Region Independent Aggressive Grocers Assn. Ron's Produce Company Indianapolis Fruit Company Swiss Valley Farms

©Illinois Food Retailers Association/Page 6 Thank You

Convention Exhibitors

A.J.W. Inventory Service Food Industry News Marian Heath Greeting Cards Acosta Sales & Marketing Fotel, Inc. Merchants Solutions Alpha Baking Company Fould's, Inc. Miller Brewing Company Arthur J. Gallagher Risk Management Fresh Express Noon Hour Food Products Services, Inc. Gallagher Benefit Services, Inc. North Country Business Products Atlantic Press, Inc. Golden Guernsey Dairy PepsiAmericas Berkel Midwest Sales & Service, Inc. Horizon Propane Cylinder Exchange POS Plus LLC C. H. Robinson Worldwide, Inc. Illinois State Lottery Power Play Distributors Cargill Food Distribution Indianapolis Fruit Company Prairie Farms Dairy, Inc. Carl Buddig & Company Integrated Store Systems, Inc. Pro Food Systems, Inc./Champs Central Grocers, Inc. Intesource Chicken Certified Grocers Midwest, Inc. IPP of America Pronto Foods Co. Commercial Waste Systems Jays Foods R. W. Rogers Company Concord/First Data Corp. Kehe Food Distributors Retail Data Systems Dean Foods Company Kraft Foods Sara Lee Bakery Group Dearborn Wholesale Grocers La Preferida, Inc. Sara Lee Food & Beverage-Senseo Edy's Grand Ice Cream Company Labriola Baking Company Scan Aps Fisher Printing Lipari Foods Snyder's of Hanover Store Scan The Redmond Company U. S. Refrigeration Valu Merchandisers Company Important Dates February 5-8, 2008 Williams Company NGA Convention Xcell International Corp. Paris Las Vegas Hotel, Las Vegas Zafi Beverages Ziyad Brothers Importing May 4-7, 2008 FMI Convention Mandalay Bay, Las Vegas

May 7, 2008 IFRA Mid-Year Meeting Retail Day at the Capitol Springfield

May 14, 2008 IFRA-GMA Annual Golf Outing Silver Lake Country Club Orland Park, IL

©Illinois Food Retailers Association/Page 7 FMI Provides Testimony to Senate Committee on Finance to End the Estate Tax — Urges Congress to Preserve Family Businesses to Create Strong Communities — — IFRA Members Rich Niemann, Sr., and Leonard Harris Share their Stories with the Committee —

he Food Marketing Institute on expanding, creating jobs and giving (FMI), representing its family- back to the community," Motley said. owned supermarket members, T Members of FMI, including Niemann recently submitted testimony to the United States Senate Committee on Foods Chairman Rich Niemann, Sr. The estate tax Finance for its hearing, "Federal Estate from Quincy, Illinois; ShopRite CEO Tax: Uncertainty in Planning Under the Joseph Colalillo of Flemington, NJ; makes family- Current Law." FMI and its members D’Agostino Supermarkets, Inc. CEO have called for repeal of the estate tax Nick D’Agostino, Jr. of Larchmont, owned businesses for more than 20 years. NY; and, Chatham Food Center CEO Leonard Harris of Chicago, IL, provided less competitive and The hearing was sponsored by Senator personal stories to the Committee to Max Baucus (D-MT) and Senator illustrate why food retailers seek reprieve drains resources that Charles Grassley (R-IA). "We applaud from this pernicious tax, including: Senator Baucus and Senator Grassley for should be focused on their efforts to support the success of • In a low-margin industry like food family businesses," said John Motley III, retailing, estate planning represents expanding, creating senior vice president, government and a proportionally outsized expense. public affairs, FMI. Expenses incurred for estate plan- jobs and giving back ning waste precious resources that to the community. "Store owners confronted with an estate could be much better invested in tax liability are often left with no choice new stores, jobs, expanded consumer but to sell stores to raise the necessary services and community programs. funds because assets are not liquid. Every store that does not get built – or • The estate tax acts as a constant worse, has to be sold – to pay an estate brake on growth and expansion – the tax bill means lost jobs and less income lifeblood for survival in the super- owners don’t have to answer to security for the millions of employees in market industry. The overhanging investors or shareholders primarily the grocery industry. threat of the tax often causes store interested in bottom-line results. “In an industry that averages an annual owners to postpone building new stores or renovating existing ones. • The estate tax is a critical factor in profit margin of only one percent, forcing owners to sell or liquidate companies weakened by sell-offs often • The estate tax is “blind” to the intrin- their firms. In an industry already find it hard to continue to compete sic value of family-owned enter- dramatically affected by consolida- and grow. The estate tax makes family- prises. Family-owned companies tend tion, family-owned businesses say owned businesses less competitive and to be heavily involved in community that the estate tax looms as a major drains resources that should be focused and civic affairs in part because their factor that jeopardizes their survival.

Holiday Schedule The IFRA office will be closed Monday, December 24 and Tuesday, December 25, Monday, December 31 and Tuesday, January 1. Happy New Year!

©Illinois Food Retailers Association/Page 8