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Ru N REPORT A Associated Food Dealers BULK RATE 18470 W. 10 Mile Rd. U.S. Postage Southfield, Ml 48075 PAID ASSOCIATED FOOD DEALERS OF MICHIGAN Permit No. 36 r u n Address Correction Requested Detroit, Ml * K and its affiliate: PACKAGE LIQUOR DEALERS ASSOCIATION FOOD & BEVERAGE REPORT A *0L 8. NO 10 An official publication of the Associated Food Dealers of Michigan OCTOBER 1997 and its affiliate, Package Liquor Dealers Association Electronic Deregulation and its on the independent ■ page 4 Dm '* IGA draws its customers fram the north side of the frawbridge - page 16 Distributors - «deoc> Ls big part of success A FD - 9 * 6 J SPECIAL EDITION Mtrt Rep. Bogardus - page }0 Legislative Update Even Santa has Michigan roots! by Michele MacWilliams that children from every nation learn as they Air quality This month we celebrate the great study geography. bounty of products and services that But this great mitten-of-a-state holds a our state provides. distinction that many of us are unaware of. standards Surrounded by Great Lakes, Michigan is the birthplace of our modern-day dotted with inland lakes and Santa Claus. The figure of Santa that we are alert ingrained with rich, fertile soil, all familiar with was created by Haddon In a grassroots “Call-to Michigan produces a plethora of Hubbard Sunblom, bom June 22, 1899 in Action" delivered to agricultural products. Ours is a Muskegon. Sunblom created Santa for a member companies last leading state in the production of Coca-Cola ad campaign in 1931 and thanks to apples, black beans, celery, week, GMA asked the continuity of Coca-Cola’s packaging, cranberries, mushrooms, navy beans, manufacturers and their Santa Claus comes to live for all of us, young blueberries, tart cherries, pickling employees to help put a and old. cucumbers, plums, geraniums, Before Sunblom, Santa Claus was stop to the Environmental hanging flower baskets and Easter Protection Agency's (EPA) perceived as a pixie, gnome or a jolly old elf. lilies. Then through the creative mind of Sunblom nisguided changes to Leisure activities are abundant too. Behind came the Coca-Cola Santa Claus, a bear of a man, cheery current air quality manufacturing and the food industry, the travel and tourism and robust, fitted with a heavy red coat and matching cap - standards In July, EPA industry ranks number three as a revenue source. Sailing on the Santa we all know and love today. finalized stricter rules for Lake Charlevoix, exploring the Taquamanon Falls, We invite you to browse the pages of this special “Made National Ambient Air antiqueing in Chelsea, skiing in Boyne Country, and salmon in Michigan” issue, and learn a little about the variety of Quality Standards fishing on Lake Huron are just a few of the many products and services our state offers. Then, please (NAAQS) for particulate recreational opportunities that make our state a great place remember to support those fine companies that have matter and ozone The to work and live. worked hard to make our state such a wonderful place to new rules are based on Then there arc cars. Where would we be without them? work and live. questionable science and We are proud to be the Motor Capitol of the World; a fact could have serious economic consequences within large sectors of the Michigan firsts industry. These might The Michigan Slate Fair was the first state fair in the United States. include limiting fleet The first auto traffic tunnel built between two nations was the mile-long deliveries. greater Detroit-Windsor tunnel under the Detroit River. See Legislative Updates, The world's first international submarine railway tunnel was opened between Pori Huron. Michigan, and Sarnia, Ontario, Canada in IS9I. i The nation v first regularly scheduled air passage service began operation Mark 'our calendars for between Grand Rapids and Detroit in 1926. the AKl) Turke> I)ri\e— Vnembtr 25! Please help In IH79 Detroit telephone customers were first in the nation to be as signed * help those in need, ( all phone numbers to facilitate handling calls. Tom Am>o( al In 1929 llie Michigan State Police established the first state police radio <248)557-9tW. system in the world. President's Report Mark Karmo, Chairman Royal Food Center Golden Valley Supermarket Bill Viviano Vice Chairman. Future Planning Consumers don’t know their buying House of Prime Sam Yono Vice Chairman, Legislation, Palace Plaza Ronnie J. Jamil habits as well as they may think Vice Chairman. Membership Mug & Jug Liquor Store 57 percent of shoppers say they • In-store hanks - 40 percent Terry Farida Treasurer, Value Center Market would purchase them; but only 46 say they would use one, only 33 Sam Dallo percent actually do so at least once percent do so. Secretary In N Out Foods. Region 4 a month. Such findings underscore the EMERITUS DIRECTORS Consumers underestimate need for continuing analysis of Nabby Yono their use of: consumer trends - both nationally XTRA Foods, Orchard Food Center • Private label products - over and locally. Although sometimes Frank Arcori 85 percent of shoppers use them at difficult, it pays to know your V O S Buying Group Amir Al-Naimi least once a month, while nearly customer. In many cases, I believe Joy-Thrifty Scot two-thirds (66 percent) of that the retailer actually knows his Tom Simaan shoppers whose stores do not carry customers and their shopping Lafayette Park Supermarket these products say they would use habits better than they know RETAIL DIRECTORS by Joseph D. Sarafa, AFD president them if they were available. themselves! Fred Dally As we all begin to look at the • Frequent shopper programs Medicine Chest Life’s constants: Death, Jim Garmo opportunities and challenges in the - used by 8 1 percent of shoppers Galaxy Foods Region 2 Home Meal Replacement category, who have the opportunity, only 76 taxes and the steady Richard George fresh food deli as well as ready-to- percent said they would use them W ine Barrel Plus Raad Kathawa eat takeout foods should be an if available. price of groceries Ryan's Foods. Region 1 integral part of the investigation. It seems that consumers also Alaa Naimi Retailers investing in these services Consumers overestimate their don’t have a real grip on their food Thrifty Scot Supermarket use of: Alan Stotsky may be interested to learn that expenses either, which they Concord Drugs, Region 6 consumers do not seem to know • Nutrition and health believe are on the rise. There are Thomas Welch their shopping preferences as well information - such information is few things that people can really Hollywood Super Markets as they think, according to a recent available at 62 percent of count on these days. Everyone Brian Yaldoo Woodward Long Lake Shell FMI study. For example, consumers’ primary supermarkets. knows about death and taxes but Jerry Yono consumers underestimate their Over 65 percent of shoppers say another constant that many may D & L M a rk e t actual use of fresh-food delis. Over they would use such information, not realize is the relatively steady SUPPLIER DIRECTORS 75 percent of shoppers use delis at however, only 58 percent of those price of groceries. Al Chittaro least once a month, but only 69 who can use it, actually take Unfortunately, many American F a y g o C o rp percent say they would use this advantage of it. consumers believe that food prices Gary Davis • D rop-off or return points fo r T om D a v is & S o n s D a iry C o . service if their primary store offered are “on a tear,” according to “Why Denny Otto it. recycling - 56 percent of shoppers Shoppers Think Food is a Rip- Spartan Stores, Region 3. Conversely, ready-to-eat takeout say they would use it once a off,” Wall Street Journal, March 6, Ron Paradoski foods, such as chicken, sandwiches month, only 50 percent of those Strohs'Mooney Ice Cream 1997. “But checking out at a Mike Rosch and pizza, are purchased less who have access do so. supermarket isn’t as costly as most General Wine & Liquor Co. frequently than consumers • Video-for-rent - 50 percent of people think." Cal Stein anticipate: 83 percent of shoppers' shoppers want it. only 32 percent Over the past five years, family Sales Mark Region 5 primary supermarkets provide them; use it. Barbara Weiss-Street grocery spending has risen at a The Paddington Corporation rate lower than inflation, according Chris Zebari to an FMI report. That finding is Pepsi Cola Company consistent with the average annual AFD STAFF A CONSULTANTS The Grocery Zone By David Coverly increase in the consumer price Joseph D Sarafa index (CPI) for food-at-home. Pres»dens arxJ Publisher Since 1990, food inflation has Judy Shaba averaged 2.45 percent a year, S e rv ic e s Daniel Reeves compared with 3.1 percent for the Deputy Director CPI overall. Cheryl Twigg n Prices for the top 100 packaged- Ofltco Manager goods categories (excluding meats, Elizabeth Arbus Executive Assistant , to fresh vegetables and fruits), rose Sylvia Youhana just two percent a year for the four Receptionist years that ended in September, Danielle MacDonald reports an A C. Nielsen study. T rade Show Sabah Brikho That's well under the 2.8 percent Membership Sales annual average rise in the CPI Harley Davis during that time. Consumers may C o u p o n s think they are spending more on Ruel Williams Community Relations groceries. But in reality, they are Ray Amyot spending less, since food prices Advertising are rising at a pace considerably Tom Amyot o i , m m c o m ov slower than inflation Special Events I f Eric Ham Harmony Project Karoub Associates R \\)^;w \cra Your opinions un­ legislative Consultant M Gadaleto & Ramsby CCWSSS) W H W important to us! Call AFD Heartri Care James Bellanca Jr.
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