Just In AFD leaps into wine war

Legality individual consumers and retailers. Michigan well for over 70 years. House Bill 4959, sponsored by Chris The cornerstone of the three-tier questioned on Ward, R-Brighton and Senate Bill system has been the retailer/consumer 600, sponsored by Bob Emerson, D- relationship. We would like to subsidized lottery Flint, are in response to the May U.S. preserve this system not just as a Supreme Court ruling. matter of business but as one of payouts In a letter to Michigan legislators, public safety as well. AFD President Mike Sarafa wrote: “Alcoholic beverages remain a AFD has recently received several “On behalf of Michigan’s 8,000 unique commodity that requires inquiries from retail members wine retailers, I encourage you to strict regulation and control. Under regarding the legality of retail stores support legislation being introduced the 21st Amendment to the U.S. awarding higher payouts on Daily by Rep. Chris Ward and Sen. Bob Lottery winnings. In order to attract Constitution, states have the right customers, AFD has become aware of Emerson that will address a recent to regulate alcohol. But in today’s tha fact that some stores up the ante U.S. Supreme Court decision that society, this right further extends to a on lottery payouts by subsidizing the abolishes Michigan’s law regulating duty and moral obligation to protect winning tickets. They promote this the importation of alcoholic liquor. citizens from unsafe and illegal use to their customers in order to create From a strict business standpoint, of alcoholic beverages.” more traffic and additional Lottery every bottle of alcoholic liquor Another position that may be sales. shipped into Michigan is a lost sale considered by our legislature is one AFD staff and legal counsel are for a Michigan retailer. that is currently being advocated by currently researching the legality of On Tuesday, June 14, the AFD “Michigan beverage retailers are Michigan wineries and the California this issue. Board of Directors unanimously heavily regulated and taxed under Wine Institute. Under this plan, AFD also made an inquiry to the agreed to support legislation that the Michigan Liquor Code. The limited shipments would be allowed. Lottery Commissioner’s office, who would prohibit all direct shipments introduction to this code states that The state would regulate the amount is forwarding the question to the of wine from wineries to individual the Liquor Control Commission of wine that is either shipped by Michigan State Attorney General. consumers. was created 'for the control of the wineries, received by individuals or As reported in the July edition of alcoholic beverage traffic within the both. Inside the AFD Food & Beverage Report, State of Michigan.' The mechanism The AFD Food & Beverage Report a May Supreme Court ruling said used for this control has been the will continue to monitor this situation Scotch, Cognac and conversation that states that allow direct wine three-tier system, which has served and report on all new developments. at Industry Night...... 4 Ubjnd shipments must do so on an even- Combating inventory shrinkage... 10 handed basis and not just for in-state wineries, as Michigan law previously Ph* Knob Wine Shoppe attracts "Unities...... 16 allowed. It’s beginning to look" Identical state House and Senate UatRep. Chris W ard...... 32 bills introduced in June would ban a little like Christmas! f*9s has liquor shelves all direct shipments by Michigan arreted...... 34 wineries and out-of-state wineries to The weather may be warm and sunny, but the holidays are just around the comer. Mark you calendar now for the AFD Holiday Beverage Shows. We are Food Dealers PRSRT STD *<15 W. 13 Mile Road U.S. Postage happy to present a NEW show on the West side of F*"*>gton Hills, Ml 48334 PAID Michigan at the DeVos Place in Grand Rapids on DETROIT, Ml Tuesday, September 20, 2005. The new location for the c*Bnae Service Requested PERMIT #36 beverage show held formerly at Burton Manor is now at Rock Financial Showplace in Novi, on Wednesday and Thursday, September 21 & 22, 2005. See pages 20 & 21 for details! 2 | AFD Food & BeverageREPORT EXECUTIVE COMMITTEE Chairman'sMESSAGE

Ronnie Jamil Chairman Mug & Jug Liquor Stores Funding recycling one penny at a time Fred Dally Vice Chair Membership Medicine Chest By Mary Dechow Thomas Welch millions of jobs, income and tax Vice Chair Legislation dollars for other states. This business Hollywood Super Markets As food retailers, we have long opportunity is untapped in Michigan. been one of the leaders in Michigan’s According to national figures, a five Gary Davis recycling efforts. Through our work, Wee Chair Long Range Planning percent increase in recycling could Tom Davis & Sons Dairy Co. billions of bottles and cans are result in the creation of 18.000 new recycled. In addition, grocers have Chris Zebari jobs, $574 million in payroll and led the way in recycling everything Wee Chair Community Relations $204 million in tax revenue. It’s a New Hudson Food Market from corrugated boxes and stretch shot in the arm that our economy wrap to wood pallets and used Al Chittaro certainly needs. bakery oils. The bottom line is, Treasurer Today, it’s difficult for a Michigan Faygo Beverages, Inc. our efforts make up a large part of business involved in recycling to be Michigan’s overall recycling. Jim Garmo sustained due to the lack of materials Mary Dechow is the Director of Sadly, Michigan’s 20% recycling Secretary available here. The company Clean Shoppers Valley Market Government and Regulatory Affairs for rate is one of the lowest in the U.S. Tech in Dundee, for instance, Spartan Stores, Inc. and an AFD Board and the lowest in the Midwest. reprocesses used plastics into HDPE EMERITUS DIRECTORS Member. She is also the Chairperson And it’s declining. Due to budget and PET post consumer resin pellets of the Michigan Recycling Partnership- cuts, many communities are paring Tirry Farida . Value Center Markets that are ultimately used in the -an industry coalition organized to back on residential recycling Sam Dallo ...... In 'N'Out Foods making of other products including Bill Vlviano ...... House of Prime improve recycling and prevent bottle bill programs. It’s a trend that’s bad for bottles, plastic sheeting, fibers MarkKarmo Golden Valley Food Center expansion. AFD Chairman Ronnie Jamil the environment and bad for the Mabby Yono...... strapping, and drain tiles. CleanTech ...... Orchard Food Center asked Mary to update all of us on the economy. has to import from other states nearly prospects for funding a comprehensive Recycling is a $240 billion industry 60 percent of the plastics it needs RETAIL DIRECTORS recycling program in Michigan. in the United States, providing because Michigan’s current recycling AmirAI-Naimi ...... Joy Thrifty Scot infrastructure is unable to supply the Joe Belllno, Jr...... Broadway Market, Region 2 Mary Dechow Spartan Stores, Inc. Region 3 plastics. According to the National John Denha ...... 8 Mile Foodland The Grocery Zone Recycling Coalition, two Michigan James Hooks ...... Metro Foodland plastics recycling facilities recently Kristin Jonna . Merchant’s Fine Wine By David Coverly closed - a loss of 100 jobs - because Alaa Nairn! Thrifty Scot Supermarket of inconsistent supply. It’s a trend MlkeShina . Krown Supermarket Brian Yaldoo...... Park Place Liquor that can’t continue. Some have suggested Michigan 1 SUPPLIER DIRECTORS should increase recycling by fankBodl ...... Pernod Ricard USA expanding the current bottle Bobby Hesano . D & B Grocers Wholesale deposit law to juices and waters. Earllohbia . Sherwood Food Distributors But expanding the bottle bill will BfcaRooch General Wine & Liquor Co. only bump up our recycling rate by Bcott Skinner ...... Diageo j L 1 2 L _ - Clark Walker ...... Coca-Cola, Region 6 approximately seven-tenths of one Tom Waller .CROSSMARK Sales Agency, percent. Millions of items - from Region 5 BUMP soup cans to cell phones - would | ~CD STAFF & CONSULTANTS 1 a continue to be destined for landfills.

■tehaelG. Sarafa ...... President Consumers and businesses would Reeves Executive Vice President bear the burden of an estimated $60 “ teheie MacWilliams . Vice President of million cost, while there would be Communications no economic benefit for the state or Cheryl Twigg ...... Controller C«hy Willson . Director of Special Events Michigan workers. toyAmyot . . Director of Advertising In a recent survey conducted by H*rt*y Davis ...... Coupon Manager Public Sector Consultants, 90% T«mar Moreton . Executive Assistant enho.BMtWfl 1 of those polled said they would '*lmes V. Bellanca Jr support efforts to expand recycling "■•nca, Beattfe & DtLisle Legal Counsel TO » StCRCte* 1 in Michigan and two-thirds of those K^oub Associates Legislative Consultant m III TO PICKING ®**Meto A Ramsby ...... Health Care responding said they would support j** Gregory a funding source for expansion. Certified Public Accountant Ten potential funding sources were Associates ...... Publishing " • lU n p . k i Graphics Graphics & Prepress ^ C r im Communications, Inc Public Relations See Recycling Page 8

A u g ust 2005 | 3 Cognac, Scotch and conversation Calendar September 20,2005 featured at AFD Industry Night AFD W. Michigan Holiday Beverage Show DeVos Place, Grand Rapids, Ml (248) 671-9600 By Michele MacWilliams political agenda. In addition to the industry hosted a lively round-table great beverages and a nice selection discussion. September 21 & 22, 2005 A night of tasting Scotch and of hors d'oeuvres, AFD hosted a “The AFD Industry Night was AFD S.E. Michigan Cognac with friends and industry special presentation titled, “The New a great forum for our members to Holiday Beverage Show representatives was AFD’s most Liquor Law: Is it Working?” address their concerns regarding Rock Financial Showplace recent PAC fundraising event. Held Marty Wolinsky of Owen liquor pricing, and get some solid Novi, Ml June 1 at Shenandoah Country Consulting in Avon, Connecticut recommendations from the industry,” (248) 671-9600 Club, it was an excellent forum for gave an informative presentation said Ronnie Jamil, AFD chairman members to see old friends, meet on pricing liquor for profitability. and the retail representative on the October 29-November 1,2005 new ones and catch up on AFD’s Then, representatives from the liquor panel. NACS Show 2005 Ernest N. Morial Convention Center New Orleans, LA www.nacsonline.com

January 27,2006 AFD Annual Trade Dinner and Ball Penna's of Sterling Sterling Heights, Ml (248) 671-9600

Statement of Ownership Panel members Randy Miller of General Wine & Liquor, Scott Skinner of Diageo, Wolinsky, The AFD Food & Beverage Report Ronnie Jamil from Mug & Jug and Trans-Con's Brad Still. Marty Wolinsky of Owen Consulting (USPS 082-970; ISSN 0894-3567) is published monthly by Metro addresses the crowd. Media Associates, Inc. (MMA) for the Associated Food Dealers of Michigan (AFD) at 30415 W. 13 Mile, Farmington Hills, Ml 48334. Material contained within The AFD Food & Beverage Report may not be reproduced without written permission from AFD. The opinions expressed in this magazine are not necessarily those of MMA or AFD, its Board of Directors, staff members or consultants. Bylined articles reflect the opinions of the writer. POSTMASTER: Send address changes to AFD Food & Beverage A Happy Group 30415 W. 13 Mile, Farmington Hills, Ml 48334. ADVERTISERS: For information on advertising rates and data, call AFD, Ray Amyot, 30415 W. 13 Mile, Farmington Hills, Ml 48334, (248) 671-9600 or (989) 386-9666. AFD works closely with the following associations: IFDA m w FfXE

4 | AFD Food & BeverageREPORT NewsNOTES

Study: Calcium and vitamin D in Miller to renew ad assault on Costco to stop selling Pampers In Study: Children cannot regulate diet help prevent PMS Anheuser Busch most stores their food intake A diet rich in calcium and vitamin D, which Miller Brewing Company is touting the better Procter & Gamble Co. does not expect the Study: Children cannot regulate their food helps the body absorb calcium, could reduce taste of its beers in a new ad campaign removal of its Pampers line from Costco intake: If parents and caregivers hope to women's risk of developing premenstrual aimed directly at Anheuser Busch. The wholesale clubs to hurt its business. Although curb the risk of childhood obesity, they must syndrome, or PMS, according to a new brewer also said it was out-executed recently no reason was given for the decision, one control children’s portion sizes because study In comparing diet and supplement use by Bud brand pricing, and plans to make analyst speculates Costco has forged a deal children will eat what is in front of them, over 10 years among women ages 27 to 44 necessary adjustments to stave off any price- with P&G rival Kimberly-Clark to be its diaper regardless of what else they have eaten who developed PMS and those who didn’t, driven market share loss to its rivals. supplier. -The Cincinnati Post during the day, a new study found. -WebMD researchers found those with high intakes of vitamin D and calcium had a 40% lower risk of developing PMS. -CBS

The "ineonfundible” Dr. Pepper Marketers at Cadbury Schweppes were surpnsed and delighted to learn that acculturated Hispanics drink 62% more Dr Pepper than the public at large, but creating a Hispanic advertising campaign still presented a problem. The solution was to build a campaign that distinguished Dr. Pepper from its better known rivals in the cola market by playing on its recognizable flavor with the slogan "ineonfundible," meaning ’unmistakable." -Advertising Age

Grocery Store becomes Altar A church is so conventional, why not get married in a grocery store?

Fourteen months ago, Quincy, Illinois residents Diane Rodenck and Tom Lane met at a local Hy-Vee store, and on June 11, before 75 friends, family and store emptoyees, the couple said "I do" in the location where the courtship began.

Progressive Grocer notes that Lane, the Hy- Vee store's assistant produce manager of 15 M anaged Traditional Plan years, told a local newspaper that the floral It's the Blue Cross Blue Shield of Michigan member card, and it's honored by more doctors and hospitals in Michigan than department took care of the flowers and the any other health insurance card. bakery department took care of the cake. Community Blue PPO Store onlookers served as curious guests More people in Michigan carry this card with confidence. while the couple and their invited guest The Blue Cross card—it can't buy you everything, but what Blue Care Network HMO enjoyed the ceremony and reception in the it does pay for, money can't buy. grocery store's dining area. For information about Blue Cross coverage available to AFD members, please call Melissa Varney at 1-248-671-9600. Nash Finch to launch dedicated IGA distribution center * Cincinnati, Ohio Nash Finch distribution <*nter will be converted to a dedicated IGA facility offenng IGA retailers better selection and buying power, according to officials of Na* Finch, Minneapolis. In a June meeting YOU and the POW ER *anded by more than 120 IGA retailers, Ron Narshall, Nash Finch's chief executive officer, and Dr Thomas Haggai, chairman, president and CEO of IGA, also announced a market Blue Cross f*evef°pment program for IGA retailers www.bcbsm.com Blue Shield "’nbding improved circulars, more sales Blue Care Network events. increased pnvate-label offerings and of Michigan sales and merchandising programs, ■ of th« Bk» O o u and Bkje SnMd AawcatO' •Marshall sard.

A u g ust 2005 | 5 -NOTES

Study: Vast majority of online 'Canadian' pharmacies are frauds Patriotism fuels Hooah! energy Procter & Gamble makes high- bar sales level management changes Out of approximately 11.000 Internet sites by a Canadian internet service provider. D Andrea Brothers secured the exclusive Procter & Gamble here has made a designed to look like Canadian pharmacies, Cyveillance worked with the U S. Food and rights to distribute Hooah! bars, the official number of high-level management changes only 1,009 actually sold prescription Drug Administration on the project. Over half energy bar of the U.S. military, to civilians effective July 1. P&G’s board of directors products, according to a study released this of the sites registered in the United States with a portion of sales being pumped back elected Paolo deCesare to president, week by Cyveillance. Also, only 214 had any and dispensing drugs were registered by a into the military. The bars became available in global skin care, personal cleansing and discernible connection to Canada, either single firm, Cyveillance reported, information nearly 12,000 retail locations in early spring, deodorants. Melanie Healey was elected with registration data traced back to that that has been forwarded to the FDA, -The Wall Street Journal president, global feminine care. Steven country, or any indication they were hosted -supermarketnews.com Jemison was elected secretary and associate general counsel. Charles Pierce became president, global oral care. He was president, global family care, a position that David Taylor will take, rising from his post of vice president North America family care. Martin Riant was elected president, global baby care and adult care. Retiring from You deserve P&G are John Jensen, vice president and comptroller; and Michael Kehoe, president, SERVICE... global oral care. Study: Sweet drinks leading source of calories A study by a Tufts University professor found Kar’s sweetened beverages have become the top energy contributor in the American diet, accounting for 14% of calorie consumption and replacing white bread, which accounts delivers! for about 6% of calories consumed. Dr. Odilia Bermudez believes the food industry could use her findings to help educate consumer. • Store Door Service -FoodNavigator • Tasty Fresh Guarantee Finding consumers in the • Attractive sweltering summer Merchandising As a marketing ploy, hiring a plane to trail a banner above a beach may seem small • Contact your sales rep for time, but in fact the number of impressions might make some cable TV advertisers the latest promotional deals! jealous. Aerial banners can reach upward of three-quarters of a million bathers on Lake Michigan, a half-million on the New Jersey shore and well over a million sun worshipped along the beaches around Los Angeles. TASTE • VARIETY • SERVICE • VALUE -Advertising Age

A&P creates reward for shoppers A&P recently rewarded shoppers who made a sizable store-brand purchase. In a Fourth of July-themed promotion, the retailer offered a free cooler bag to customers who spent $25 on America's Choice products in one shopping trip. The bag sports a patriotic theme and a red, white and blue America s Choice logo. An Full line supplier of nuts, meat snacks and candy. ad in "Easy Solutions," the retailer's in-store Made in MICHIGAN for Snack Lovers Everywhere. magazine, pictured the bag with picnic-related America's Choice products, including potato chips, cola and crackers. The offer ran through KAR NUT PRODUCTS CO. I -800-KAR-NUTS July 6. Several A&P banners participated, including A&P, Waldbaum's and Farmer Jack. The taste you'll go NUTS for. WWW. I<3TST1 U tS. CO ITI • MADISON HEIGHTS. Ml 4807I -supermarketnews.com

6 | AFD Food & BeverageR EPO R T b r i g h t C r i s p C l e a n P u r e

b r ig h t because it’s fresh. C lean because it ’s pure. W ith a crisp taste k n o w n only to th e Kin g of beers. T he perfect balance BETWEEN TRUE FLAVOR AND TRUE REFRESHMENT.

A u g ust 2005 | 7 -NOTES Safeway Offers Buyouts To Almost Recycling To Wal-Mart or not to Wal-Mart Six Thousand Employees Continued from page 3 be earmarked toward programs dm. Some residents of Halifax, Nova Scotia, The Contra Costa Times reports that enable communities to collect and were up in arms recently when they saw a Safeway Inc. is presenting a buyout deal polled and all received better than recycle these and other products sign announcing that a new Wal-Mart would to some 5,800 employees in Northern 50% approval, but the one with that pose a hazard when landfilled. be built there, to be opened in about a year. California who have been working for the the highest approval was a penny In addition, funding would help The phone reportedly rang off the hook in company for at least three years. transaction fee on retail purchases. support new and current curbside the offices of local officials, as residents Under this potential penny plan, and drop-off recycling programs, MS The goal of the buyout is to replace higher- wondered what was going on retailers would collect one penny on aid in the development of business paid workers with newcomers who would every completed sale of goods, with opportunities in the collection, As it ends up. nothing was going on. make less money and have less costly that penny going to fund recycling. benefits because of the deal struck with the processing and re-manufacture of The sign was actually an expenment by local The penny may be collected on sales recycled materials. union earlier this year. The United Food and architecture students, who wanted to know of only $2 or higher and the amount Ultimately, passage of the penny Commercial Workers (UFCW) is officially how residents would react to the notion of collected for the entire sale would neutral on the offer, saying it is up to plan would significantly boost our a Wal-Mart coming to town. The result, by never exceed a penny no matter how individual members to make a decision. statewide recycling rate and it would the way, was that 25 percent of residents many items are in the transaction. render efforts to expand the bottle seemed to think it was a pretty good idea. Safeway emphasizes that the buyout offer is The transaction fee would not apply bill as unnecessary and redundant voluntary. Loti. unties, however, were not amused. to services, utilities, business-to- Michigan Recycling Partnership business sales, or major purchases, Board Members, including AFD such as a boat or a car. President Mike Sarafa, have been The penny plan recognizes that meeting with lawmakers and others AFD Chairman nearly everything we buy has regarding the penny plan and the Ronnie Jamil (right) a disposal consideration and a and Vice Chairman concept is receiving increased Fred Dally met recycling possibility. The financial support. Like the passage of any with Governor implications for any individual legislation, however, the process Granholm last would be small - $10 to $11 of writing, introducing and passing month at a fund­ annually - while the total collection such a proposal will take the raiser in Oakland potential could result in a major time and efforts of all of us in County. Photo by Jeffrey boost for recycling and Michigan’s the industry. If you’d like more Joseph Atto. economy. Since the penny would information, please feel free to apply to appliances, cell phones and contact Mike Sarafa (248) 671 -9600 similar items, funding could also or me (616) 878-2469.

The most important investment decision you may ever make won’t be the choice of a stock, bond or mutual fund. It will be how you decide to allocate your assets. Most industry experts believe that up to 90% of long-term returns are directly attributable to this one decision. Asset allocation helps reduce volatility, minimize risk and optimize return. Sagemark Consulting can help you and your advisors develop and maintain a personalized, long-term asset allocation plan—one that balances things just the way you want Find out more. Call us today.

Michael J. LoGrasso CLU, ChFC and John M. Bussa Sagemark Consulting 26555 Evergreen Road 16th Floor • Southfield, MI 48076 800-382-8122

A balancing act for Advisory services offered through Lincoln Financial Advisors Corp., a registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. S a g e m a rk Securities offered through Uncoln Financial Corp.. a broker/dealer (member SIPC). Lincoln Financial Group is Consulting the marketing name for Iincoln National Corp. and its the serious investor. A member of Lincoln Financial Group affiliates. © 2003 Lincoln Financial Advisors CRNOI007I2

8 | AFD Food & BeverageREPORT GREAT TASTE. LESS FILLING. HALF THE CARBS OF BUD LIGHT

BEFORE, DURING AND AFTER THE CARB CRAZE.

Great Taste. Less Filling

•ive Responsibly

A ugust 2005 9 Combating inventory shrinkage Retailers are more openly adopting electronic article surveillance programs.

Inventory shrinkage is a common view. Other retailers are choosing ADT's retail marketing manager. location level, or even how well the problem in retail, and grocery is no an in-house program that involves And it is clear EAS programs are a system is working.” exception. Defined as a combination fastening anti-theft tags to product. good way to stay in the game. ADT is helping retailers centralize of shoplifting, administration In both cases, the tags broadcast Whether working with supplier this data through its new automated fraud, employee theft and vendor an audible alarm throughout the partners to implement a source alarm logging system, UltraLink. fraud, inventory shrinkage cost the store when a shoplifter attempts to tagging program or taking on the Working in conjunction with anti­ nation's retailers $31.3 billion in improperly remove the tag or tagged project in-house, the number of theft tag detectors, pedestals and 2001, or 1.7% of companies' total merchandise from the store. supermarket chains utilizing EAS EAS tags, UltraLink is an electronic annual sales, according to findings "Stores that utilize security tags is growing throughout the system that collects and centralizes from “The National Retail Security technologies generally have lower industry. “Technology also allows information on EAS events. This Survey.” Equally frightening is overall inventory shrinkage than employees to focus more time on stored data is later analyzed and that these companies reported that retailers who do not," says ADT’s assisting customers and less on turned into critical reports that reveal 31.7% of shrinkage resulted solely president Mike Snyder. patrolling the aisles,” adds Snyder. trouble spots within a store. from shoplifters, accounting for $9.7 An average return on investment However, those aisle patrols “Grocers have tight time crunches billion in lost revenues. for an EAS system usually continue due to the manual process and need to manage multiple things, To combat these losses and reduce occurs within 12 months. While of logging alarms. As alarms are and an automated system is a key to these sobering statistics, retailers EAS’s penetration is slow in the set off, managers or associates management,” says Tony D’Onofrio, are more openly adopting EAS supermarket industry compared to are required to log the alarm- vice president of emerging programs. Their first option is to other retail sectors, source tagging causing item and alarm location technologies for Tyco Retail employ a source tag program that programs are driving stronger onto a paper-based spreadsheet. Solutions Group. “By providing involves embedding tiny anti-theft adoption within grocery. The challenge, however, is how them with a system that centralizes labels, similar in size to a paper “As retailing formats continue to centralize this data. “Imagine a all EAS activity, retailers use reports clip, directly inside a product’s to blur and other retail sectors like grocer that manages between 200 that pinpoint issues that cause label or packaging. Typically, these convenience stores, drug and mass and 500 locations, all using an exceptions. These reports will help units are installed by the supplier merchants encroach on supermarket EAS system,” explains Pemice. managers better utilize their time by at the time of packaging so the tags customers, grocers need to be more “A manual system cannot support are hidden from the customer’s competitive,” says Lee Pemice, analysis at an item and alarm Shrinkage, continued on page 17.

Lay Sales Representative opportunities for your business Jim Chuck at 734-414-7727.

10 | AFD Food & BeverageREPORT B o t t l in g g r o ^ v J V . A

M is Two new flavors on August 15th: -Island Fruit -Cheriy • Very Low Sodium, 5% fruit juice, and ■ Availble Now in 10% RDA Calcium 12 Packs & 2 Liter > National FSI on September 11th -> 20 O/. Available July 1st 1 2 Liters coming in August • National Media-TV, \ I Radio, Print 20 O/., 12 Fucks Available Now! • National Program ‘Win a Ticket to Space”

See your local 7Cp Account Representative for Details. B o t t l in g g h o ° ? New products coming soon

MallowCreme from DMH goat milk cream cheese is layered are used. Natural vegetable juices are go” servings of its hummus packaged Ingredients with a blend of roasted vegetables added to create a clean taste, while with crackers. The product extension DMH is introducing MallowCreme, and olives. The Mediterranean- natural hardwood smoke enhances includes nine flavors in individual a new marshmallow-flavored cream inspired product is conveniently the flavor, www.mapleleaf.com 4.1 -ounce containers complete with that allows for a quick and easy packaged in 6-ounce cups for easy crackers, www.sabrafoods.com way to make crispy rice squares entertaining, www.woolwichdairy. Pretzel Crisps from Snack and other cereal or breakfast bars. com Factory Simmer & Spoon Fresh Soups The company says the product Snack Factory has introduced from Sandridge Food Corp. gives retailers a way to increase the New cheese offerings from Pretzel Crisps, a spreadable pretzel Simmer & Spoon Fresh Soups bottom line while giving customers Winona Foods cracker that’s trans-fat-free and are refrigerated, never frozen. Set something they will want to take Winona Foods now offers assorted all natural. Available in 6-ounce to launch in the fall, they will be with them, www.mallowcreme.com cube sizes of Blue, Gorgonzola and resealable stand-up pouches in available in 16- and 32-ounce sizes Feta packed in oil accented with Original, Garlic and Everything for grab-and-go convenience and Light Garlic & Herb Cheddar herbs and spices. The 6.5-ounce flavors, the product comes in 12- come in four varieties: Chicken from Cabot Creamery package contains 1.25 ounces count display cartons and 80-count Noodle Soup, Clam Chowder, Chili Cabot has combined fragrant more than the leading brand. These floor shipper displays. Free sampling with Beans Soup and Cream of herbs and a touch of roasted garlic products are available as a private crisps are available with each order. Potato Soup, www.sandridge.com with its award-winning 50% Light label or under the Cheese Crafters www.pretzelcrisps.com ChedcLr to create new Cabot 50% brand. The glass jars are available TimeStrip CoolerStrips and Light Garlic & Herb Cheddar. This with printed lids and are packed Soy Thin Crisps from Stacy’s Grip2Go from DayMark savory light Cheddar is brimming 12 to the display-ready case. www. Pita Chip Company DayMark Food Safety Systems is with the flavor of fresh herbs and winonafoods.com Stacy’s Pita Chip Company has launching TimeStrip CoolerStrips roasted garlic, making it perfect for raised the bar for healthy snacking, that automatically track the punching up sandwiches, casseroles All-natural deli ham from Maple offering 10 varieties of Pita Chips expiration dates of perishable and and snacks, www.cabotcheese.com Leaf Foods and six varieties of Soy Thin Crisps. prepared items in the cooler by This ham is uncured, which means www.pitachips.com Mediterranean-inspired cheese no nitrites or nitrates are added. Only from Madame Chevre Elite naturally occurring ingredients such Hummus to go from Sabra Foods New products, This soft, unripened, pasteurized as sea salt and unrefined cane sugar Sabra is introducing individual “to- continued on page 31.

.Exclusive Insurance EndorsedNb.y AFD! re than five ely endorsed ^Including property/casualty, workers’ ipensation, liquor liability, and health & (fits.

• Competitive Business Insurance Rates • Fast, Easy Quotes!

To speak with a Meadowbrook Agent, call Marlene at (800) 402-2726, ext. 8216.

www.meadowbh

12 | AFD Food & BeverageREPORT island breeze

by B A C A R D I * ^

Hey Urn

THE ORIGINAL LITE SPIRIT™

A ugust 2005 | 13 Agriculture director announces resignation

Dan Wyant. Director of the President and Chief Operating Officer Agriculture. He is a friend of AFD Michigan Department o|^\griculture of the Edward Lowe Foundation, and we have enjoyed working with (MDA), announced that on July 29. a private operating foundation that him," said AFD President Mike 2005, he will step down from the assists entrepreneurs. The foundation Sarafa. post which he has held for nine years. is located on 2,500 acres of rural Wyant, a native of Cass County, Wyant was appointed to the position farmland in Cassopolis, Michigan. Michigan, brought a vast agricultural by the Michigan Commission of "Dan has made important background to MDA with a B.S. Agriculture in October of 1996. contributions to the Department of degree in Food Systems Management Wyant has accepted a position as Congratulations, AFD, on Dan Wyant another successful Golf Outing! from Michigan State University and an M.B.A. from American University in Washington, D.C. He began his public career providing policy expertise for the Michigan 0 BROWN-FORMAN Senate and serving as legislative SPIRITS AMERICAS liaison for the MDA. In February 2002, Wyant was appointed by U.S. Secretary of Agriculture Ann Veneman to serve on the USDA Fruit COU NTRY COCKTAILS & Vegetable Advisory Committee. In early 2003, he was appointed by Governor Jennifer M. Granholm to CANADIAN the Michigan Land Use Leadership Council. MIST Under Wyant’s leadership, MDA M a s M 2 W has seen an increase in consumer confidence due to programs that r ; ( 5 ) o ^ have placed a priority on food safety. £D l/A J?D O . Wyant is especially proud of his role T S Q . U 1 J . A $ p ® 1 | in introducing initiatives that promote environmental stewardship on farms. EfliUINIlA IFBIBW A highlight of his MDA career included attaining split-state status for T|^ ©IL© . bovine tuberculosis, saving the state’s livestock industry millions of dollars Tu a c a w a m t a KENTUCKY STRAICHT SOUMON WHISKY in testing costs and ensuring markets for Michigan-raised cattle. Wyant ? E P £ 0 has also been a strong advocate of LOPEZ programs that help farmers add value • THIILi* W o o d f o r d R e s e r v e - to Michigan-grown commodities. Wyant added, “It has been an honor to serve as department director for fXZ r,TTg,l: 1 im ^ X. FINLANDIA the past nine years, and I leave very VODKA optimistic about the future economic potential of agriculture in Michigan. The Director of Agriculture is appointed by the Michigan Commission of Agriculture, which Brown-Forman thanks AFD for its continued will begin accepting applications for support of our family of Products. the post immediately. Application information may be obtained from To place an order, call General Wine & Liquor: (800) 668-9571 Debra Merrill at (517) 335-3403.

14 | AFD Food & BeverageREPORT For more information about Country Fresh products:

GRAND RAPIDS • 1-800-748-0480 FLINT • 1-800-572-5390 LIVONIA • 1-800-968-7980

A u g ust 2005 | 15 RetailerPROFILE One-stop shopping attracts busy people...even celebrities

By Kathy Blake at a time. That's how people feel which brings about our food,” says Ann. people from the Ann Bahri is a busy lady who Lunch customers have time to grab outlying area. knows people want to get everything their lunch and get back on the road. Other services they need in one stop. As owners The prices are clearly marked in they offer of the Pine Knob Wine Shoppe, she refrigerator cases and on the menu, include: ATM, and her husband. Raad, have created making it easy for those who are on money orders, a formula that keeps customers a budget. “Superior service is very check cashing coming back regularly. “With the important to us. Customers are in and copies and world we live in now, everything and out in two minutes,’ says Ann. fresh flowers has to be convenient,” says Ann. The convenience store draws daily. She offers fresh ready-to-eat meals many customers travelling to and Ann is an and everything from postage stamps from the Pine Knob/DTE Energy energetic lady to . ? to help the busiest of Music Theatre, for concerts, events, who pays customers. skiing and golf. Located at 5726 attention to every She and her suff provide Maybee Road, just east of Sashabaw, detail. Dressed fresh food made from scratch the store is just down the street from in a stylish skirt daily. Barbara Townsend is the the entertainment area. and blouse with chef. “Barb and I are always Celebrities have been known to a full apron brainstorming new ideas,” beams shop at the store. Kid Rock, the made of a print Ann. “Today, we made a sampler musician, purchases Coors Light of small chili pack with a Mediterranean meat roll, there. Ann says stage managers stop peppers and tabbouleh, and hummus. Customers in or have food catered to the DTE flowers, canvas say, ‘everytime we come in here, Energy Music Theatre for whoever’s sandals with red there’s something new. We like to doing a show that night. painted toenails: keep it fresh, with fresh ideas. I will There is a great wine and liquor she is just as not serve anything out of the carton,' selection with the shelves stocked ready to serve a she stated. “If people come in and full. “If people request things, I customer as work have a great chicken salad sandwich, always order it for them.” out a business they’ll always come back,” explained For parties and occasions. Pine deal. At first Ann. They keep people coming Knob Wine Shoppe offers catering of glance, people back by providing a quality product. meat trays, salads, six-foot subs and might be deceived by her feminine more inviting to customers. She “We're always consistent,” she adds. pizzas. appearance, however, she’s not just keeps the parking lot neat and Besides fresh sandwiches, they Ann stocks numerous items that a pretty face. As a woman business maintains attractive landscaping on also sell pizza, mixed salads, Greek aren’t typical for a party store, such owner, Ann is a force to be reckoned a strip of property separating her and chef salads, soups, subs, chicken as fresh fruit and vegetables, stemos with in taking care of and looking parking lot from the next business. tenders, meat dishes and trays of and baking soda. She believes in out for her store and employees. She She and her husband bought the goulash, wrapped sausages, calzones, doing whatever it takes to help busy also has a heart for her customers. building in the late ‘70s, when it was vegetable trays, stramboli, and more. customers get what they need to After 27 years, her store a barbershop. They added on to it “There's a guy that comes in and make it through the day. has become a fixture in the and when the barber moved out, they buys five of our meatball sandwiches They also offer Money grams, community. She donates products expanded into that space. to the Clarkston High School post In the early years, she remembers graduation party every year. She young customers who couldn’t reach takes great pride and responsibility the counter. Now the children of in owning a store that provides those kids shop there. “Customers the daily needs for people in the move away and come back to visit. area. “People look at Pine Knob People love that they have something Wine Shoppe like a staple in the to hold on to in the community,” community. We’re like family. Ann explains. She has raised her You don't get that feeling in chain own children; Nicholas and Natalie, stores,” explains Ann. while growing her store. Now that When the store celebrated its 25th they are young adults, they work at anniversary, Ann had t-shirts printed the store. for the staff, with the words, “”The Ann said she and her husband Best People in the World Shop at are very proud to have run a Pine Knob Wine Shoppe”. This successful business that has provided reflects her belief that customers are a valuable service for all these to be treated well and made to feel at years. In the near future, they plan home. to retire in Florida and leave the For every holiday, Ann and her store for someone else to carry on staff decorate the store, to make it the tradition of taking care of busy

16 | AFD food & BeverageREPORT Shrinkage, Plant-based diet helps Diet soda linked to continued fro m p a g e 10. maintain healthy weight weight gain focusing on trouble areas, rather than 10 retailers, including some Lacto-vegetarians, those who eat Those who drink soda have a areas that are not causing problems.’ supermarkets, are testing the dairy but avoid meat, fish and eggs, higher risk of growing overweight UltraLink is a keypad device UltraLink technology. “It is the right tend to have lower BMIs and are less or obese, says a study of patient data typically mounted on the wall next time to introduce this technology,” likely to be overweight, according to that baffled researchers. Drinkers to alarm pedestals located near store says D’Onofrio. “Our customers several studies. Experimenting with of diet or regular soda were more exits. When an EAS alarm sounds, were asking for this technology, meatless options, consuming healthy likely to become overweight than UltraLink’s LCD screen prompts and it will definitely increase the carbs and using dairy products are nondrinkers, but with all other the employee to enter data about the efficiency of their operations.” all ways to curb meat intake, and factors considered, regular soda was event, including the exact terminal - Grocery Headquarters possibly reduce fat intake and weight. not linked with being overweight. or item that triggered the alarm, -The Washington Post -The Miami Herald directly into the unit’s touch screen interface. This screen also tracks and displays the employee’s response time. Employees’ input data is stored directly within the box, where it stays protected and will not be lost if the network goes offline. It is not uncommon for employees to forget to deactivate a tag, causing an alarm to sound as the innocent customer tries to leave a store with the product. To track these events, ADT linked a handheld component to the system from Symbol Technologies, located in Holtsville, N.Y. As the EAS alarm sounds, employees armed with a Symbol handheld unit approach the customer carrying the tagged merchandise. Users can scan bar codes on register receipts or specific products, and data is electronically transmitted to the box. All collected data is eventually electronically transmitted from the box into corporate, directly over the retailer’s communications or point- of-sale (POS) network. Once the data arrives at the corporate level, it is stored in a central repository that is linked to Datavantage’s Proact XBR loss prevention and POS data raining software. Upon analyzing data, the system creates reports tfiat assess better training methods, raore accurate merchandise tagging, equipment repair and identification of high-theft products. Experience the difference Some retailers may be familiar w'th another Datavantage-ADT at Partnership that links the Proact XBR w>th its Intellex digital recorder. This partnership, however, tracks Peoples State Bank events revolving around POS data linked to closed circuit television Farmington Hills • Fenton (Opening in August) systems. “Both systems enable trend Grosse Pointe Woods • Hamtramck aj^ysis at the corporate level,” says Madison Heights • St. Clair Shores D Onofrio. “UltraLink results will R BOPLES Southfield • Sterling Heights • Warren allow the loss prevention team to on high-risk locations, store S t a t e B a n k 1.888.876.4545 www.psbnetbanlc.com Partments or actual items.” Member FDIC ^rtfcntly, between six and

A u g ust 2005 | 17 Lemon idea crystallized his success

When David Schleider was 8 years do as good a job or work as hard as years to develop. He took fresh lemon your water or tea. Use it in cooking. old, he would peel 2,000 hard-boiled anybody.' juice and lemon oil, squeezed it, (One packet equals a third of a eggs in a sitting to help out his father's Now 39, Schleider is determined mixed it and turned the concoction lemon.) catering business. By 12, he'd make to take on a challenge far beyond into fine crystals. He put the crystals “We want an open box in every hors d'oeuvres by the thousands. kitchen work: He wants to change the into bright yellow and blue packages pantry," said Schleider, who is "The idea of hard work, way Americans think of, and use, the and called it True Lemon, with the president and CEO of Grand determination and sacrifice is what lemon. dream of making it as ubiquitous as Brands in White Marsh, Maryland. kept me going," Schleider said. “I Eighteen months ago, he launched salt, pepper and sugar. Sprinkle it in In January, the company signed a might be the boss’ son. but 1 could a product that tcx)k him nearly three water, on fruit or in yogurt. Add it to distribution agreement with Sugar Foods Corp . the company that distributes Sweet'N Low, Sugar in Prudential Retirement the Raw and Blue Diamond almonds. By the end of July, Schleider expects True Lemon to be in 15.000 stores. More than 75 years of ‘It has been quite a success,' said Brad Vickery, vice president of sales and marketing and purchasing at retirement plan innovation Distribution Plus Inc., which has been distributing True Lemon for the past 12 months. “I think it has large in one powerful package. potential.” It may be the only product of its The people at Prudential are working hard for you—combining smart, new technology and kind on the market. A spokeswoman for Cadbury Schweppes, said its personal service—to create a retirement plan that's easier to access, and easier to manage. product, ReaLemon, only comes in liquid. Not just more fund choices, more benefits. By October, Schleider expects More investment options from Prudential and other leading fund families. Grand Brands to break even. He is Not just information—education, asset allocation and advice, too. also working on True Lime, which he expects to roll out this fall, and a • Prudential GoalMaker™ asset allocation service helps your employees make smarter secret product designed for the coffee investment choices. industry. • Our partnership with Financial Engines® lets employees opt for personalized online retirement advice. • Retirement specialists and award-winning educational materials can help boost participation and deferral rates. Attention all Not just anytime access, anywhere access. BC/BS Plan sponsor and participant websites simplify plan reporting and account management • Participants enjoy "anywhere" access to their retirement plans via Intuits Quicken® Deluxe customers: personal financial software (versions 2001 and higher). As part of our ongoing effort to protect member’s privacy and to meet Not just great technology, great people. mandated legislative requirements. Help with any aspect of your plan, from enrollment to understanding your investment options. Blue Cross Blue Shield of Michigan • A knowledgeable customer service representative, just a phone call away. is discontinuing the use of Social Security numbers on member’s ID cards and all member correspondence. Call me for more information about Prudential Retirement: A randomly assigned nine-digit (248)433-8508 numeric contract ID number will be Calvin G. Zara, Financial Planner used instead. Prudential (M Financial The Blue Cross Blue Shield of The Prudential Insurance Company of America Michigan and Blue Care Network CA Insurance License OD37537 Crowing and Protecting Your Wealth’ initiative to re-issue more than 4 million member ID cards began in June and will be completed by Financial Engines is a registered trademark of Financial Engines. Inc Quicken is a registered trademark of of Intuit. Inc Financial Engines. Inc.. Intuit. Inc , and Prudential are independent organizations For more complete information about the investment options available including charges and expenses, please contact January 1,2006. Members will Prudential at 200 Wood Avenue South, Iselin, NJ 08830, for a free prospectus. Please read the prospectus carefully before investing Secunties offered as a reg­ benefit from the increased privacy istered representative Pruco Secunties. LLC (Pruco), 751 Broad Street. Newark. NJ 07102. and distributed by Prudential Investment Management Services, LLC resulting from discontinuing the (PIMS). Three Gateway Center, 14th Floor. Newark, NJ 07102. members SIPC. Pruco, PIMS and The Prudential Insurance Company of America are Prudential Fi­ nancial companies Prudential Retirement is a Prudential Financial business Prudential Financial is a registered service mark of The Prudential Insurance Company use of Social Security numbers on of Amenca and its affiliates INST-A002811 Ed their ID cards and other member 12/2003 correspondence.

18 | AFD food & BeverageREPORT A ugust 2005 | 19 ows-N ew Sh o w ! New Locations!

S.F. Michigan Holiday Beverage Show

W e d . & Th u r s ., Se p t e m b e r 21 & 22, 2005 at the Rock Financial Showplace 46100 Grand River Ave., Novi, Ml — Formerly at Burton Manor—

Show Hours: Ask your Sales Rep for Tickets! W ed., Sept. 21, 2005 • 4-9 p.m . Admission Ticket Required. Thurs., Sept. 22, 2005 • 4-9 p.m. $10 at the door. Complimentary parking Novi Expo Center, Novi, Ml No bags allowed in or out. Grand River Rd., (1 mile west of Novi Rd.) The law demands that you be at least 21 years of age to attend this show. Call AFD for more information at: (248) 671-9600 Four considerations for your business fleet auto coverage By Brandon Horrocks autos in the course of your business. 1. Lowering Your Rates. For the collision deductibles can also help Meadowbrook Insurance Agency Business auto insurance best prices, shop around for multiple lower your premium. Of course, you (sometimes called: “fleet insurance") quotes. Start by asking the agent have to understand that by doing this If your business owns one or more functions similar to personal auto who handles your general business you are assuming a bit more risk of vehicles that your employees use to insurance, providing liability and insurance to get a quote from the expense in the event of a claim. make deliveries, sales calls or run property coverages for injury, same insurance company where they Finally, a good safety program errands, then you need commercial damage, and theft exposures of your placed your other business coverage. will gain favor with insurance automobile insurance. Even if your business vehicles. This article will Most carriers offer discounts for companies. When hiring drivers, business does not own any vehicles, review some specific considerations additional policies and could save employers should check their driviiy you still may have exposure from when evaluating or purchasing you an additional 20%. records. Keep vehicles in safe and the use of your employees’ personal commercial auto insurance. Raising your comprehensive and good, working order. Employers should retain thorough maintenance records. Many businesses have Flee! Safety Programs. These programs consist of policies and procedures fur employees to follow with regard to use of the company vehicles. 2. Limits of Liability. In general, higher coverage limits are recommended: $1,000,000 should be the standard. Many will suggest minimum liability protection of $500,000 as sufficient. However, in the event of an accident resulting in injuries, multi-party claims can H quickly exhaust your available limit. It is worthwhile to consider MoTown Snack Foods has 7 NEW reasons raising your liability coverage to $1,000,000 or more. In comparison, the higher limit will not necessarily why “You Can’t Stop Eating “Em” from Jay’s cost that much more. Generally, it is less expensive to purchase higher amounts of coverage on a commercial vehicle than a personal auto. Umbrella insurance can also be used to provide higher coverage limits. An umbrella policy can be purchased to apply in excess of your auto liability policy and provide an additional layer of coverage MoTown also offers the latest Cape Cod items 3. Hired and Non-Owned Auto. Hired and Non-Owned auto coverage should be included on your including Sea Salt with Cracked Pepper, commercial auto policy to protect your company's interests should a Beachside BBQ and Robust Russett! loss occur while your employee u*e» their own vehicle or their rented Ask about the $1.99 promotion on the vehicle on company business. Your employee's personal auto $2.99 line with a 27.1% margin! insurance will respond to any claim first, as the primary coverage with your commercial auto policy When you think applying in excess of this employee’! policy. In terms of rental cars, many of MoTaste personal lines insurance companies routinely reject claims for cars rated Think of MoTown! for business use, resulting in an exposure to your business. The solution is to use the “Employees as Insureds Call Jim or Jim at Endorsement" to provide coverage for employees using their own aid* (313) 931-3205 Four Consideration*, 14 MoTsite from, MoTotitt4 continued on page 24.

2 2 | AFD Food & BeverageREPORT A u g ust 2005 | 2 3 The cost of plastic is too great for some retailers A local CiCi's pizza restaurant Grosskreutz, told the newspaper told the newspaper. “I don’t think a few dollars worth of in-store hems, exemplifies a trend in retail where that after allowing his customers there's anyone out there who isn’t again with plastic. merchants are balancing some to pay for their $3.99 pizza buffets looking at it.” “Sometimes we’re getting double- customer’s desire for rewards by plastic for the past two years, he The impact can be even greater at pinged,” Lenard told the newspaper. programs with the increasing costs of stopped accepting credit cards after convenience stores that sell gasoline, Increasing the frustration for accepting plastic. And in the case of costs escalated to $6,000 to $7,000 with owners sometimes getting retailers are the new “premium” this CiCi’s, the cost outweighed the per year. charged twice on the same customer cards, such as the Visa Signature benefits, notes the Sarasota Herald “Pretty much all retailers are if a customer fills up at the pump card, that carry higher fees, noted the Tribune. concerned about this,” NACS using a credit or debit card, then goes National Retail Federation’s (NRF) The owner of the local CiCi’s, Carl Director of Public Affairs Jeff Lenard inside the convenience store and buys Vice President for Government Affairs Craig Shearman. “They’ll send that to the consumer and say, ‘You’ve been upgraded to the signature card,”’ Shearman told the newspaper. “What they don’t tell the consumer is the retailer, instead of paying 1.4 percent on the card, they’ll be paying 2.9 percent on the card.” And Mallory Duncan, NRFs senior vice president added, “We’re convinced that if consumers saw that hidden cost, they would choose the cheaper form of payment,”

Four considerations, continued from page 22.

for your company’s business. Non- owned and hired auto coverage is oat that expensive. Expect to pay around $100 per $1 million of coverage. Also, check to see if you have over­ lapping coverage. Some business SERVICE In the ice business, there are two basic choices of ice styles: VOGT and owner policies include non-owned TURBO. Turbo ice has no uniformity whatsoever; as the machinery and hired auto liability in their U.S. ICE knows that the best way to attract new produces flat sheets of ice that are sent through a crusher, Vogt ice coverages. customers, and to maintain the trust of established machinery produces long, cylindrical tubes of ice with a hollow center customers is to provide fast, reliable delivery. that are sliced to perfect uniformity. Over the years it has become 4. D.O.C. — Drive Other Car For this reason, when we built our state-of-the-art apparent that our customers much prefer Vogt ice for its consistent Coverage. Employees who are ice manufacturing facility, we purposely chose a drinking pleasure. That is why all U.S. ICE is manufactured by the Vogt provided an automobile as part location with the best access to the entire Detroit ice process. of their employment often do not metropolitan area. purchase personal auto insurance in their own name. While using a PRICE u.s. ICE CORP. furnished auto, an employee and his U.S. ICE has always been known for its competitive 10625 West 8 Mile Road • Detroit, Ml 48221 or her family members are covered pricing structure, personalized specifically to your (313)862-3344 • Fax (313) 862-5892 under the business auto policy. individual needs. This sounds great. However, a LARGEST ICE MANUFACTURER IN THE CITY OF DETROIT, potential problem exists: employees with manufacturing capacity of 300 tons who lease, hire, rent, or borrow a other autos for their personal use are not covered by their employer's business auto policy. Drive Other Cm Coverage - Broadened Coverage far Named Individuals is an endoneaeat to the commercial auto policy which closes this coverage gap. Aa employee’s spouse who resides with them automatically receives the m ore coverage without being specifically identified by the endorsement. Brandon Horrocks is the D irecto r of the Select Business Unit of Meadowbrook Insurance Agency. Contact Brandon directly at Call the ICE LINE: (313) 862-3344 (248)204-8237 or e-mail him a t [email protected].

2 4 | AFD Food & BeverageREPORT A ugust 2005 | 2 5 Crisp, cool refreshing taste of vinegar?

In the summertime, many want to reap the benefits vinegar Americans like to reach for a can provide. The newspaper says tall glass of water or lemonade according to a professor at Kinki to quench their thirst. In Japan, University, vinegar promotes blood an ingredient used to make salad circulation and contains citric acid, dressing is making a huge splash as which aids in recovery from fatigue, a new beverage trend. stimulates appetite and assists in Drinking vinegar, writes Japan digestion. Daily, is a recent fad that is showing The newspaper notes that vinegar signs it is here to stay, prompting beverage sales for Japan’s largest vinegar manufacturers to capitalize vinegar manufacturer, the Mizkan on consumer demand for vinegar- Group Co. nearly tripled to 21.46 based beverages. billion yen between March and “I feel refreshed when I drink August 2004 from 7.57 billion vinegar, especially in summer,” a yen in the same period in 2000. 36-year-old consumer shopping for Sales of cooking vinegar were at vinegar at a department store in 12.98 billion yen during the same Metro Detroit • Flint Tokyo told the newspaper. “I’ve had period, compared to 13.14 billion 23661 Telegraph Road apple vinegar for drinking purposes, yen in 2000. Vinegar manufacturer but now I want to try other fruit Uchibori Vinegar Inc. has also CO Southfield, MI 48034 vinegars, like litchi and cranberry.” experienced its average monthly MAGAZINES 248-945-4900 Another reason why Japanese sales at each of its six shops to Fax 248-945-4922 consumers are picking up vinegar increase 10 times over sales from NEWS beverages may be that they are two years prior. Wholesale Distributor Better Business Bureau becoming more health-conscious and

Slicin''1!!

SURGEON GENERALS WARNING: Smoking Causes Lung Cancer, Heart Disease, Emphysema, And May Complicate Pregnancy lo Additives In Out Tobacco Does NOT Mean a Safer Cigarette

2 6 | AFD Food & BeverageREPORT A u g ust 2005 | 2 7 DearAFD

On behalf of all the employees at Sherwood Food Distributors. I AFD Scholars say thanks... would like to take this opportunity to thank you and your organization I want to thank you for granting for allowing us to partner with you This is just a note to say thank you me with the Associated Food at your members annual show. It for the scholarship I received. It Dealers scholarship. This award will definitely help with the cost of is a privilege to be considered your means a lot in paying for my room and board, books, tuition, and partner in this endeavor. education at Harvard. I will spend the many other expenses I’ll face. I I think that all of the participating the money that I have won wisely greatly appreciate it and wanted to vendors, not just the ones in our and I will work hard and stay let you know. Thank you again and section, recognized the hard work focused at school. God bless. that your staff contributed to the success of this show. After speaking Thank you, Timothy Finch to other vendors, it appeared to me Eric Wingo that everyone was satisfied with the results. Your show, in my opinion, has I want to personally thank you become the premier show in our I am writing to express my thanks for your donation to the Associated for your immense generosity. I diverse industry and we at Sherwood Thank you so much for your Food Dealers Scholarship. I’m very am extremely grateful that you Foods look forward to continuing generosity. Everything is greatly excited to be heading off to college were able to sponsor my award and our partnership with you and the appreciated. It definitely helps with this fall and I am greatly honored to promise that the AFD scholarship Associated Food Dealers. the cost of college. I plan to attend receive a scholarship. It will help will be put to good use this fall at On a personal note, it is a pleasure Michigan State University in the me very much. Your support is Notre Dame. I look forward to to work with your association and fall and major in nursing. Once greatly appreciated. seeing you at the awards banquet employees. I look forward to having again, thank you so much for this this July. Thanks again for your this opportunity again next year. scholarship, it means a lot to me. Thanks again, kindness. Alex Shook Sincerely yours, Sincerely, Sincerely, Ernesto Ostheimer Allison Atchoo Lauren Hesano Director of Sales Wholesale Division

RANDALL A. DENHA, ESQ. Estate and Business Planning Specialists Cox, H odgm an & G iarm arco, P.C.

Our estate planning attorneys provide soundly based estate and business succession plans utilizing:

Revocable Living Trusts Split-Dollar Plans (Private and Employer) Irrevocable Living Trusts Generation Skipping Transfer Trusts Qualified Personal Residence Trusts Charitable Planning Techniques Grantor Retained Annuity Trusts Buy-Sell Agreements Sales to Grantor Trusts Estate Planning for Retirement Benefits Business Succession Plans Asset Protection Planning A Health Savings Account (HSA) is a qualified high-deductible medical plan used in conjunction with a specific use tax-exempt bank account. Savings Please call from moving to a high-deductible plan can be put into the account to pay for future qualified medical expenses. Employer and/or employee may RANDALL A. DENHA, ESQ. contribute to the account. Any medical expense paid out of the account is at (248) 457-7205 tax free. What you don’t use rolls over year-to-year in the interest account.

Associated Food Dealers is proud to sponsor Blue Cross Blue Shield of Michigan for our members. BCBSM offers three different HSA's with no COX, medical underwriting to groups of 2 or more employees. HODGMAN & BCBSM is now more affordable than ever, with our ability to age rate. Take GIARMARCO, P.C. a look at the benefits of joining AFD sponsored BCBSM program. 101 West Big Beaver Rd., Suite 1000 Blue Cross For information on AFD’s Troy, Michigan 48084-5280 Blue Shield endorsed Blue Cross program, call: Blue Care Network Phone (248) 457-7000 • Fax (248) 457-7219 of Michigan Melissa (800) 666-6233 or www.disinherit-irs.com [email protected]

28 j AFD Food & BeverageREPORT Base games need to be part of successful retailer’s mix slowly decline. But these five games carry all of these games, and some out-of-stocks and maximize sales have defied that trend: Sales of each of these games, such as Cashword, opportunities. remain strong and steady week after should have multiple facings to If you need additional information week, and in the case of Cashword, ensure adequate inventory levels. This about base games or your inventory continue to grow! Obviously, players applies whether you display instant levels, talk to your Lottery district continue to come back to these games games in dispensers in counters, over sales representative. They are and count on them being available. the counters or behind the counters. available to assist you in maximizing We strongly recommend that you Also, it is important to eliminate your return as a Lottery retailer!

By Commissioner Gary C. Peters BETTER MADE

What makes a successful Lottery SNACK FOODS, INC. retailer? There are a number of actions a retailer can take to ensure that he or she is in the best position possible to maximize instant game sales, and in turn, maximize commissions. A good place to start is by making sure that a full lineup of base games is available to customers. Base games are those instant games that have a sustained value and longevity, resulting in consistent and steady sales. They are not theme- based, such as NASCAR or Harley Davidson which are games that have a niche audience, but those tried and true that appeal to all demographics: age, income, geography, and education. Current base games, in the $2 category, are Cashword, Wild Tune and Bingo; $5 base games are Bingo Mania and Super Red Hot Cashword. To date in FY 2005, the three $2 base games account for 55 percent of weekly $2 game sales. Average weekly sales for Cashword are 51.667,000; Wild Time. $889,000, and Bingo, $724,000, for a total weekly average of $3,208,000. On the 55 side, Bingo Mania sales average 5345,000 per week and Super Red Hot Cashword averages $337,000, for an average of 28 percent of all weekly 55 game sales. Together, these five games average $3,962,000, or 30 percent, Please Contact: °f toul weekly sales. In FY 2004, fos number was $3,861,000, or an MARK COSTELLO average of 29 percent of total weekly s^es* so you can see that it is on the Director of Sales rise. 313-925-4774, ext. 105 The sustained appeal of these games ls interesting. Sales of the average •nsUnt game peak early and then email:[email protected]

A ugust 2005 I 2 9 A heady brew of beer pitches

Some observers say the best way has come from Treasure Coast The merger to find out what’s going on in the Marketing Corp., an Anheuser- of Interbrew beer industry is to simply watch a Busch licensee that coordinates and Ambev last bit of television. If that’s so, then the licensed merchandise program summer, which the big story revealed by those slick, for beer in national retail markets. created InBev, often entertaining commercials is The corporation works to feature is being viewed an all-out race for market share licensed merchandise in, on and as a positive between the largest players as a around traditional store displays for the overall resurgent Miller Brewing Co., tries in an effort to create streamlined beer category to gain ground on Anheuser-Busch, and consistent selling points. Jon by company the longest frontrunner. Dangler, vice-president of national officials and by Right now, the major players sales for Treasure Coast, says these some industry are bombarding the airways presentations “give retailers the observers with advertising, often attacking opportunity for a good margin and as well. It each other with cute slogans and incremental sales.” Upcoming certainly should skits as much as promoting their promos include a Dale Eamhart Jr. make some own products. Anheuser-Busch theme to endorse the new Budweiser noise since is making strong pitches for its eight-pack and a tennis and golf ball the merger Budweiser, Bud Light and Michelob package for Michelob Ultra. created the brands, while Miller is being at least Industry officials say A-B has done No. 1 brewer aggressive with its own advertising an excellent job with its advertising, in the world program for High Life and Miller particularly with the Budweiser by volume. Light. brand. The company also seems Dominated by Other brewers are also assertively willing to devote a great deal of import labels, targeting beer drinkers with money to future promotional efforts the company’s advertising, whether it’s the costly to maintain market share. assortment type found on television and in top of 17 beers consumer magazines, or through Miller: success breeds innovation includes brands such as Rolling dedicate more space to them in order other less expensive vehicles. For Several years ago Miller Brewing Rock, Beck’s, Bass, Stella Artois to keep up with consumer demand. all, the bottom line is keeping the was struggling for an identity and and the Labatt Blue family. brand top of mind. market share in the competitive InBev is launching Beck's Premier FX Matt: finding the niches “It’s beyond promotion,” says beer business. Today the company Light, the first low-carb import to The FX Matt Brewing Co., based Brian Sudano, senior vice president appears to be back on its feet and hit the U.S. market. Not only will in Utica, N.Y., is not your typical of Beverage Marketing Corp. grabbing market share, thanks to a this product be a first in the import brewery, and therefore does not brew in New York. “It’s how you strong advertising program and other segment, it will also lay claim to the a typical beer. Family-owned and communicate propositions.” So promotional activities. title of the most low-calorie beer operated for 116 years, the company in an industry where consumers Working in A-B's shadow, the in the U.S., with 64 calories per refers to its brews as “high-end niche typically associated price with company is attempting to reinvent serving. “We are very excited about products.” They are distributing on quality, what marketing strategies itself with new product sizes and early enthusiasm from retailers for the East Coast from Maine to North actually get results? Here's a look at promotional activities to attract new, Beck’s Premier Light,” says Victor Carolina and the west to Ohio. what some beer companies are doing perhaps younger, consumers. For Melendez, director of marketing at “The beer category has allowed to stay in consumers' heads. example, a new fridge 18-can pack InBev USA. itself to be a commodity,” says Fred has been designed in response to the Matt, vice president of marketing Anheuser-Busch: staying ahead popularity of the 12-can pack, and it Boston Beer: the specialty and sales, prompting consumers to of the pack will be available for certain brands business look for innovative and flavorful St. Lewis-based Anheuser-Busch beginning early this year. When Jim Koch started the Boston alternatives to regular beer. With appears to be an almost untouchable Beer Co. in his kitchen in 1984, he six types of brew under the Saranac competitor, with sales that by far Barton Beers: a world view could only guess how the industry label, as well as a series of seasonal exceed those of any other domestic A good example of the benefits would look roughly 20 years and festive assortments, he says, brewer and profits that account of diversity is Barton Beers, an later. But now, with much of the FX Matt’s variety is particularly for more that two-thirds of the import and marketer for the western growth in beer consumption coming appealing on supermarket shelves, industry’s total. The company’s 25 states. In addition to having specifically to craft brews, Boston where more specialty beer is sold Budweiser brand outsells all other No. 1 import Corona in its lineup, Beer is “riding the wave,” says its than any other venue. domestic premium beers combined. the company also has the Mexican founder. The company’s seasonal Matt also points out that flavored However, company officials say brands Negra Modelo, Modelo beers, in addition to its popular beers, such as the company’s that despite A-B’s success with Especial and Pacifico, the German Samuel Adams brand, are consistent Chocolate Amber and Wild Berry premium beer, the segment itself has brand St. Pauli Girl and the Chinese players in the retail market. The Ale, require less marketing money, experienced a period of persistent brand Tsingtao. Barton posted company plans to introduce a new allowing distributors to effectively decline, demanding creative strong sales for Corona last year, and brew, Samuel Adams Black Lager. promote them through store sampling marketing strategies for some of the company officials hope to keep the But despite the money-making and thematic displays. most popular brands. momentum going this year. allure of the import and craft brands, - Grocery Headquarters One innovative approach InBev: building off a merger Koch points out that stores need to

3 0 | AFD Food 8» BeverageREPO RT New products, Cone Cakes from Camelot Fruit filling and toppings from I. Shrimp skewers from Beaver continued from page 12. Desserts Rice & Co. Street Fisheries Camelot Desserts is introducing I. Rice & Co. is introducing its New from Beaver Street Fisheries, changing color when food is about Cone Cakes, confetti cake baked high-quality filling and topping line, retail-ready shrimp skewers are to expire. Also being introduced are in an ice cream cone, topped with available in strawberry, blueberry, packed 10 per box, with seven Grip2Go disposable pastry bags, swirled vanilla icing and sprinkled cherry and new chunky mango premium P&D tail-on shrimp with a no-slip exterior that makes with confetti. There is one for every varieties. All fillings contain real per skewer. It’s a great item for them feel and perform like canvas. day, and a collection for holidays fruit and can be used in danishes, promoting in display freezers or Available in three sizes, Grip2Go that has coordinating colors, pastries, pies and a variety of other serving in the deli: convenient, fast pastiy bags are designed to fit all sprinkles and labels. The shelf-stable bakery applications. and easy, www.beaverfish.com tips and couplers, www.daymark.biz product comes four to a container www.iriceco.com with a colorful label. -Grocery Headquarters Itartle shell pastries from Rain Creek Baking Co. These pastries are made from caramel with pecans, almond pieces or peanut butter, nestled under a crisp fillo shell enrobed and crowned with a pecan half, whole almond or Get peanut. They’re individually cupped, ready to serve and have a four-month shelf life. The upscale desserts are available in bulk and retail packs. www.raincreekbaking.com Quenched! Absopure Cheesecake Fruit Crisps from Suzy’s Cheesecakes Natural Spring Water With the evolving interest in healthier eating, Suzy’s has fused Is Available cheesecake, flash-frozen fresh fruit and organic ingredients to create In Just The Right Size a line of Cheesecake Fruit Crisps. Each is a three-layer cheesecake For People On the Go! with IQF fruit and topped with an all-butter streusel prepared using organic spelt flour. They contain no trans fats, artificial colorings or preservatives, www.suzys.com Naturally clean, naturally clear Absopure. Available at fine stores everywhere. Cracklebred from Good Health Natural Foods Absopure Cracklebred, an all-natural delicate cracker, is a fat-free partner for Tastes Great Because It cheeses, spreads or any topping. The product is available in three Comes From Our varieties: Original, with the taste Own Natural Source In of rice and com; Veggie, lightly masoned with the flavor of tomato Pristine Southern Michigan! and herbs; and Multigrain, a combination of rice, com and whole wheat. www.e-goodhealth.com

Thin & Crispy Pizza Crusts from Spartan Foods of America Spartan Foods of America is lntr°ducing Mama Mary's Gourmet & Crispy Pizza Crusts made real pizza dough. Each package stains two crusts, which are made honey, are cholesterol-free and Ve a third less sodium than the ^ing brand. An invisible shield P^ents crusts from becoming when topping are added. **wntamamarys.com

A u g ust 2005 | 31 State Representative Chris Ward is a young leader with old-fashioned ethics

By Kathy Blake hold up their end of the agreement after getting the zoning they wanted,” explained Ward. The land CHRIS WARD remained zoned that way. Now if Republican-Brighton the developer doesn’t do what they 66th District said they were going to do, the House Majority Floor Leader government considers the zoning Legislative Committees: as non-conforming, which makes it • Health Policy hard for developers to sell or change • Higher Education and Career the land. This holds the developers Preparation more accountable for their plans and •House Oversight. Elections, and agreements with local governments, Ethics Chairman according to Ward. • Natural Resources, Great Lakes, Rep. Ward became politically Land Use and Environment active at a young age. In the eighth grade, he worked on George Bush Sr.’s political campaign. When State Representative Chris Ward he was a senior at Brighton High (R Brighton), recently praised the School, he ran for the Brighton House Appropriations Committee township board and was elected for presenting a balanced budget that in the fall after graduating. He does not raise taxes on the residents served as trustee for six years while attending college and was clerk or businesses of Michigan. “As part • Preserves police and fire to ensure there is not a conflict for four years. He graduated from of the House Leadership, we were protection by increasing money of interest regarding departing Cleary University in Howell with all proud that we were able to pass given to local municipalities. members of the Legislature working a balanced budget without raising a Bachelor's degree in Business on special interest agendas while Administration prior to beginning taxes. It’s a good sign. We're Rep Ward is the House Majority still in office," said Ward. “To take his first term as a State Rep. in 2003. sending a message to the business Floor Leader. He describes this a position so soon after leaving Rep. Ward's district includes parts community that we re serious, we're leadership position as the traffic cop office brings potential questions of of Livingston and Oakland counties: doing the tough stuff to turn the state for the House of Representatives. impropriety that we cannot ignore.' the fastest growing counties in around for economic recovery," Rep. He decides which bills to take up Ward explained. “It's just an Michigan. Livingston is the fastest Ward beamed. and manages debate on the floor. appearance issue. With term limits, "In the last several months, we growing, percentage-wise, l^astyear He is also chair of the House the potential for harm is great," he the county grew by 25,(XX) residents. have listened to Michigan residents Oversight. Elections, and Ethics added. The bill is currently under and looked at ways for the state to His district includes the village of committee. He co-sponsored consideration in the Senate. live within its means." said Ward. Milford and the city of Brighton as the bill for the new election Rep. Ward is also a member of well as several townships. ‘ I'm pleased the budget increases consolidation law. In order to the following committees: Health K 12 funding, and includes ways to Ward is a member of the Brighton reduce confusion for voters, the Policy; Higher Education and fund state college and universities District Library Board, the Township newly enacted law limits local Career Preparation; and Natural Lakes Committee, Township Open as well as continuing to provide government election dates to four Resources, Great Lakes, Land Use, services people have come to expect, Space C'ommittee, the Township Tuesdays per year: in February. and Environment. without raising taxes and lees.” Personnel Committee, Fire Board May, August and November. It During his first term, the 2(X)3- and Water Authority. The Michigan also requires school elections to 2(X)4 session. Ward introduced 24 Jaycees awarded Rep. Ward According to Rep. Ward, the be held by local governments. “It bills that were signed into law. One House Republican budget: with their “Outstanding Young got schools out of the business of that he is particularly proud of is Michigander in Government” award • Does not raise taxes; holding elections,” said Ward. Other House Bill 6164, which became in 2001. • Stops nearly S3(X) million in provisions of the law made absentee a Public Act of 2(X)4. part of a Granholm-proposed tax increases Rep Ward is*a lifelong resident ballots more accessible. Rep. Ward three-bill package giving local of Brighton. He is married with and fund shifts; said he recently introduced a bill municipalities the authority to • Increases funding for K 12 three young children. He enjoys allowing early voting, a few days enact contract zoning. It allows reading, bicycling and playing education; prior to election dates. developers and local government to with his children. To contact Rep- • Creates a new funding Earlier this year. Rep. Ward come to an agreement. Sometimes a Ward, call (517) 373-17K4. email lo formula for colleges and introduced a bill that imposes developer might be willing to donate [email protected] or write universities. a six month waiting period for land or pave roads in exchange tor The Honorable Chris Ward. Slate • Protects essential services departing lawmakers to become desired zoning designation. “Before Representative. State Capitol. PO for seniors, children and those with lobbyists. Ward said 27 other states the new law. local governments had Box 3(X) 14. Lansing. Michigan. disabilities; have similar legislation. "We want no recourse if developers didn't 4Xri(X; 7514

3 2 | AFD Food & BeveragoREPORT The Power of Your Community is right behind you.

Every time you turn on a fight, thousands of your friends and neighbors are right

there making sure it works. That's thousands of Michigan-based Detroit Edison

and DTE Energy workers providing you w ith the level of service and dependability

you've come to expect for over a century. And we're also right behind you when

it comes to community support donating more than six miflion dolars a year to

D etroit Edison

dteerargy.com

A u g ust 2005 | 3 3 MemberPROFILE JAYD Tags supplies customized price tags for liquor shelves

By Kathy Blake for more than 30 years. The Yono’s acquired their knowledge of the Jonathan Yono and his family saw liquor business from working at the a need arise and turned it into an family's convenience store. Super Y opportunity. The Legislation passed Market of Romulus. in late 2004, which allows retailers Since state law still requires liquor to set their liquor prices at any rate pricing to be clearly displayed, the above the state minimum, has created opportunity for changing prices has a greater demand for customized created a need for liquor price tags liquor price tags for store shelves. that are customized to the retailer’s “The new law gave us the idea to pricing strategy. start the business. We realized it was “We noticed most stores have been going to be costly for stores to get raising their prices, but staying in new tags that are customized to the relatively the same ball park. There stores’ liquor pricing strategy. We are some stores that haven’t marked wanted to not only save customers up prices at all for one of two money, but time also,” said Jonathan. reasons. One, the retailers wanted As a convenience store owner, the to raise prices but did not have an Yono Family has insight into how affordable and convenient option for to best provide the shelf tags and purchasing price tags to keep their inventory of make everything more convenient shelves presentable. Two, some customers’ for retailers. Jonathan, his brother retailers weren’t sure what they shelves and Jerome, and sister and brother-in- were going to do with their pricing placing the law, Jennifer and Anthony Dickow strategy,” said Jonathan, adding, liquor price started JAYD Tags earlier this year. “We can give them some insight on tags on the Jonathan and his siblings receive what mark-ups we are seeing in the shelves, free of advice from their father, George marketplace.” charge, for the Yono, who has been in the business JAYD’s services include taking retailers’ initial order. When a customer adds CUSTOMIZE PRICE TAGS a new item to its shelf, they FOR YOUR LIQUOR SHELF complete a change sheet and either fax or email it to JAYD TAGS JAYD tags. Every quarter, JAYD sends Just tell us your pricing strategy its customers State Minimum new tags for the items they carry in and also keeps the retailer’s new which the MLCC price has changed ^ k State Minimum + % Increase pricing strategy almost invisible to and every year, the customers are the retailer’s customers, Jonathan A State Minimum + Select Increases sent an entire new set of tags. said. “We’re very service-oriented and While JAYD Tags is focused for We will inventory your liquor shelf and personable with our customers,’ now on liquor tags, they hope to said Jonathan proudly. JAYD expand into supplying other tags, set-up your store for no extra charge! provides its customers’ tags within such as wine descriptive tags and 2-3 days of taking inventory and/or barcodes for convenience and receiving a change sheet. They grocery stores. The Yono family Jonathan Yono are continuously looking for ways started their business based on 248.939.8888 to make their services even more retailers' need to adapt to the or efficient, said Jonathan. changing liquor market and make Anthony Dickow Their liquor price tags are printed 248.730.2403 price adjustments easier. on customized laminate paper. For more information, call Jonathan Office Tel./Fax The 1x2 inch tags have the price, Yono at 248-939-8888 or Anthony 248.624.8997 complete brand name, bottle size, Dickow at 248-730-2403 or email date of label, distributor and liquor salest&jaydtags.com. sales ©jaydtags.com codes printed on the tag. These tags www.jaydtags.com make it easier for ordering products

3 4 | AFD Food & BeverageREPORT Food samples please taste buds, and increase sales

Retailers looking to boost notes that Whole Foods is conscious Affairs Manager Jamie Miller told Giant, Food Lion and Harris Teeter, new product sales or show off a of not placing any foods out that the Post that the grocery chain is told the Post that in addition to food new food trend are realizing the could provoke allergic reactions and planning to expand its food sampling demo-ing, retailers have a long benefits of providing in-store food generally supplies product labels at demonstrations, but not on the same laundry list of other items they would demonstrations to keep customers each sampling station. level of Costco or Whole Foods. like to have manufactures spend coming back for more. While food demo-ing is proving Caroline Cotten Nakken, chief their money on. However, retailers An article in the Washington a positive move for some retailers, executive of Mass Connections, a are moving funds to accommodate Post highlights a recent survey not all grocery chains are on board company that handles food sampling in-store sampling, a service that has conducted by Supermarket Retail with the service. Giant Foods Public services for grocery chains such as increased as much as 64 percent in Marketing that showed 70 percent the last year. -NACS of respondents said they would shop at a store if they knew it would be offering free product samples. Of that group, 86 percent said they would be more likely to buy a new brand if they could sample it first in the store. Costco uses Club Demonstration Services Inc. to hold its in-store product demos and track sales of that product following the demo. Regional Manager Tammie Allen told the Post that 89 percent of the time, sales will increase. "The sale may not happen that day, but they come back for it,” she said. An Arlington, Virginia, Whole Foods Market offers food samples as a way to turn customers on to a new product. Sarah Kenney, mid-Atlantic marketing director for Whole Foods, told the Post, “Our shoppers aren't familiar with the products and the brands... We expand their horizons. We’ve turned people on to a lot of things.” Whole Foods does not track sales of the products it provides customers to sample. "Our approach T ’fiank You,

A u g ust 2005 | 3 5 Legislation goes after cigarettes by mail

“Undeliverable” is how the mail that were purchased over suffering to the tune of $1.4 billion Code and provide that “Cigarettes, Representative John McHugh (R- the Internet, notes The New York in uncollected taxes and our children smokeless tobacco, pipe tobacco, NY) would like to classify cigarettes Times. are able to buy these products with and roll-your-own-tobacco are and other tobacco products being “It's a very clear solution-we must ease. The Postal Service hasn't nonmailable matter, shall not be shipped through the mail via the get these tobacco items out of the stepped up to prevent this, so this carried or delivered by mail, and United States Postal Service (USPS). mail stream. As long as cigarettes bill will ensure that tobacco by mail shall be disposed of as the Postal On June 8. the New York member and other tobacco products are is simply not an option." Service directs." The legislation of Congress introduced a bill that mailable, the costs to our society The press release notes that would also impose a penalty of would ban the delivery of cigarettes are great." said Rep. McHugh in a specifically, the legislation would $100,000 for each code violation. and other tobacco products through press release. “State revenues are amend Title 39 of the United States The New York Times notes that current law in New York prohibits the direct shipment of cigarettes and bans private carriers such as FedEx from delivering cigarettes. However, the state cannot dictate to USPS how it should regulate cigarette traffic through the mail. North Pointe NACS Daily previously reported that New York officials cite USPS as being responsible for delivering the bulk of illegally purchased cigarettes Michigan's Leader to residents across the state. “While this private-carrier ban does discourage some sales, it leaves ><&*** in Liquor Liability a $400 million loophole in New York alone." said Rep. McHugh. "And worse, it still leaves open for 17 years the possibility of tobacco sales to minors. Changing the law won’t eliminate sales altogether, but it will running! definitely throw a wrench into these illegal practices.” -NACS

Competitive Rates Couch is USA's Endorsed byAFD for 17 movie spot

consecutive years A new study by the Associated Press and America Online reveals that three quarters of Americans would rather watch a movie at home Never assessable, no north I Pointe than go to the theater - which, Insurance Co. according to the AP, may explain deductibles, policy fees why “Hollywood is in the midst of to or surplus lines tax longest box-office slump in 20 yen* and 2005 is shaping up as the worst (800) 229-NPIC year for movie attendance in nearly • Fax: (248) 357-3895 decade, if theater business continues Available through the at the same lackluster rate.” Admitted, Approved and Domiciled in Michigan However, the poll also found that Independent Agent "people who use DVDs, watch or call AFD at: pay-per view movies on cable, Network with over download movies from the Internet (248) 671-9600 and play computer games actually 1,000 agencies to or go to movies in theaters more than people at the same income levels serve you (800) 666-6AFD who don’t use those technologies. That suggests the technology may h* complementing rather than competing with theatergoing."

3 6 | AFD Food & BeverageREPORT C l a s s i f i e d Supervalu announces new president Supervalu Inc., owner of the the role of chief operating officer is president of Supervalu’s distribution

STORE FOR SALE-S uperette, liquor, lottery, Save-A-Lot grocery chain, recently newly created. food companies. Stoffel, 39, Spartan store. $595,000 & inventory. Sales promoted Mike Jackson to the Sherry Smith, senior vice president previously was corporate vice $2400,000 annualy. 20 year lease. Serious inquiries only. Call John or Jim (248) 644-8900. positions of president and chief of finance, also previously held the president of financial planning. operating officer, and named Jim title of treasurer. Both Stoffel and Noddle said the reorganization will FOR SALE—Full service supermarket. 3200 sq. ft. Meat, produce, liquor. Est side Detroit, facing Stoffel as treasurer. Smith report to the company’s chief help ready the company for its new Grasse Pointe, Call (313) 885-7140. Chairman and Chief Executive financial officer, Pamela Knous. initiatives, including a third-party FOR SALE-1971 Mercury Cougar XR7 - 351 Jeffrey Noddle previously held the Jackson, 51, joined Supervalu logistics business, new produce Cleveland all original but paint. Clean, runs well. title of president in addition to his in 1979 and most recently served offerings and retail projects. S5000.00 OBO - MUST SELL. Call [734) 941- 2011 x11 before 6pm or (313) 295-037/ after current titles. A spokeswoman said as executive vice president and 6pm.

FOR SALE-Beer & wine license. City of Taylor. Hobart Slicer $975. Deli scale $100. Call (734) 940-4016.

FORSALE-Small grocery/beer-wine store with lottery and ATM. Building 50x80 with large parking lot for additional development opportunities. Call John (313) 273-6015.

FORSALE-Well established food market strip center in Warren. Total of 15,900 sq. ft. Fully rented. Qualified buyers only. Call after 5:00pm. Phone (586) 781-3298.

FOR SALE-H obart Grinder #4632,2 H.P. Single Phase. Completely rebuilt—$2,000.00. Yorkshire Food Market, (313) 885-7140.

FOR SALE-P arty store 50 miles north of Detroit. Liquor, beer & wine, lotto, groceries & DNR Licenses. Gross-over $400,000.00. Includes two rental houses plus building. $500,000.00 plus inventory. Phone (810) 985-7663.

FOR SALE-Party store 40 minutes north of Lansing. Beer, wine, liquor groceries, lotto, approximately over $9,500.00 a week. S building, equipment, 2 extra lots A r c t i c G l a c ie r , I n c . $175,000, plus inventory. Terms possible. Owner retiring. Phone (989) 875-6073.

FOR SALE-6 foot deli self-server, front doors. $1,500 or best offer. Call 313-274-1426.

KITCHEN HOOD FIRE SYSTEMS AND EXTIN GUISHERS-Low discount pricing to all AFD numbers. New installs, remodels, inspections, focharging and testing. Also servicing auto paint booths and gas stations. All brands: Ansul. uBtitem. Range Guard. Servicing southeastern Mrttaan 24/7. Call Alan Ross at GALLAGHER F'RE EQUIPMENT-800-452-1540.

CHARLEVOIX B U S IN E S S FO R S A L E - tstablished Grocery Store in Northern Michigan wowm for its custom meats, fine wines, and ^Pecialty food items. Don’s IGA is a landmark to jocal and summer residents alike! Real estate, U® j l(1uor licenses, equipment and fixtures "auded. Priced at $849,000. Call Lori Jodar at wyne Realty: 231-439-4097.

^ E T S - L e t us pick up your 48x40 unwanted ^ p a lle t s each week or two and pay you r ^ - We'll keep your back rooms clean. Phone 313-491-1500.

JJ^E D -O utdated, close dated and discon- H Products-food, candy, juices, etc. $$$. L™* 313-491-1500. 100% tax write-off also 1- 800- 327-2920 or available.

;?*|SALE-Liquor store, approx. 38I co° ler space. Lenawee Co 810- 987-7100 ^7-456-7249 for details.

Liquor, Lotto, Deli, Pizza. 10 miles tojw* Flint, buy 4-lane highway. Doing over j^J»week. Excellent Lotto sales. Building and 1755 Y e a g e r S t r e e t , Ig^T^Partm ent. Large parking lot. Owner ^ b jn is is a well-established business (50 e ^ ^ ^ s lo c e t io n ) . Price: $245,000. Call P o r t H u r o n , M I 4 8 0 6 0

SXfVSTORE, EASTSIDE LOCATION—Beer. hw_l v j!' Lotto. Only Serious, interested ^ ^ 5 8 6 -7 7 7 -2 4 6 3 fy/arren Location). With

A ugust 2005 | 3 7 SUPPORTTHESE AFD SUPPLIER MEMBERS

AUTHORIZED LIQUOR AGENTS: Hanson & Associates Inc (248) 354-5339 Detroit Free Press (313)222-6400 Secunty Express (248) 304-1900 General Wine & Liquor (313) 867-0521 J B Novak & Associates Detroit News (586) 752-6453 (313)222-2000 Southfield Funeral Home (248) 569-8000 National Wine & Spmts 1-888-697-6424 Metro D Sales (734 ) 416-8969 Michigan Chronicle (313)963-5522 Tn-County Pest Control . (586) 296-7590 1-888-642-4697 S & D Marketing (248)661-8109 Suburban News— Southfield (248 ) 945-4900 UHY Advisors, Inc . (248) 355-1040 Encore Group/ Trans-Con, Co 1-888-440-0200 Trader Publishing (248)474-1800 Vix-Kersch Vending Co (248)548-1300 CANDY & TOBACCO: WDIV-TV4 (313) 222-0643 BAKERIES: Altria Corp Services, Inc (734)591-5500 STORE SUPPLIES/EQUIPMENT: Ackroyd's Scotch Bakery Fubidia, Inc (810)742-8274 NON-FOOD DISTRIBUTORS: Alarm-Medic (248) 349-9144 & Sausage (313)532-1181 Nat Sherman (248) 202-7339 Items Galore (586) 774-4800 Belmont Paper & Bag Supply (313)491-8550 Archway Cookies (616)962-6205 R J Reynolds (248) 475-5600 Brehm Broaster Sales (989)427-5850 Awrey Bakeries, Inc (734) 522-1100 POTATO CHIPS/NUTS/SNACKS. Culinary Products (989)754-2457 Interstate Brands/ CATERING/HALLS: Better Made Snack Foods (313)925-4774 DCI Food Equipment (313)369-1660 Wonder Bread/Hostess (586) 792-7580 Farmington Hills Manor (248) 888-8000 Fnto-Lay, Inc 1-800-359-5914 Envipco ...... (248)4714770 S & M Biscuit Dist (Stella D'Oro) (586) 757-4457 Karen s Kafe at North Valley (248) 855-8777 Motown Snacks (313)931-3205 Hobart Corporation (734)697-3070 Taystee Bakeries (248) 476-0201 Penna’s of Sterling (586)978-3880 Kar Nut Products Company (248) 588-1903 JAYD Tags (248)6248997 St Mary's Cultural Center (313)421-9220 Mexico Wholesale (313) 554-0310 Jim Leach, LLC (989) 791-3131 BANKS Tina's Catering (586) 949-2280 Martin Snyder Product Sales (313)2724900 ATM of America (248) 932-5400 PROMOTION/ADVERTISING: MSI/Bocar (248)399-2050 ATM of Michigan (248)427-9830 DAIRY PRODUCTS: Art One Sign Expo (248)591-2781 Sara Lee Coffee & Tea (734)414-8433 Cash Depot (920) 432-5777 Country Fresh Dames 1-800-748-0480 Enterprise Marketing (616)531-2221 Taylor Freezer (734) 525-2535 Comenca Bank (313) 222-4908 Golden Valley Dairy (248)399-3120 PJM Graphics (313)535-6400 TOMRA Michigan 1-800-6104866 Fifth Third Bank (248) 603-0550 Melody Farms Dairy Company (734) 525-4000 Peoples State Bank (248) 548-2900 Mexico Wholesale (313)554-0310 RESTAURANTS: WHOLESALERS/FOOD DISTRIBUTORS: Standard Federal Bank 1-800-225-5662 Pointe Dairy (248) 589-7700 Copper Canyon Brewery (248)223-1700 Amencan Way Foods (313) 945-0710 Prairie Farms/ Pizza Papalis Corp (248 ) 540-2426 Brownwood Acres (231) 599-3101 BEVERAGES: Tom Davis & Sons Dairy Co, (248) 399-6300 Rio Wraps (248 ) 540-2426 Capital Distnbutors . 1-800-447-8100 Absopure Water Co 1-800-334-1064 Superior Dairy Inc (248)656-1523 Carp River Trading Co 1-800-526-9876 Allied Domecq Spmts USA (248)948-8913 SERVICES: Chef Foods...... (248)789-5319 Ambassador Service Group (248) 879-7704 ELECTRONIC AGE VERIFICATION AAA Michigan 1-800-AAA-MICH Consumer Egg Packing Co (313) 871-5095 American Bottling (313)937-3500 D J King & Associates 1-800-781-5316 Advance Me Inc. (513)518-3150 CS & T Wholesalers (246) 582-0865 Anheuser-Busch Co...... 1-800-414-2283 Al Bourdeau Insurance Services, Inc D&B Grocers Wholesale (734) 513-1715 Bacardi Imports, Inc (248) 476-6400 EGGS & POULTRY: 1-800-455-0323 Dearborn Sausage (313)842-2375 Brown-Forman Beverage Co (734) 433-9989 Consumer Egg Packing Co (313)871-5095 Alarm-Medic (248 ) 349-9144 EBY-Brown, Co 1-800-532-9276 Brownwood Acres (231) 599-3101 Lmwood Egg Company (248) 524-9550 Amencan Mailers (313)842-4000 Economy Wholesale (313) 922-0001 Central Distributors (734) 946-6250 AmencanA Systems (248)379-1575 Epstein Distnbutmg Co (248) 646-3501 Coca-Cola Bottlers of Ml FRESH PRODUCE: AMT Telecom Group (248) 862-2000 Food Services Resources (248) 7388758 Auburn Hills (248) 373-2653 Aunt Mid Produce Co (313)841-7911 Andrews Brothers Inc George Enterpnses (248) 851-8880 Detroit (313)825-2700 Detroit Produce Terminal (313) 841-7400 Great North Foods (989) 356-2281 Madison Heights (248) 585-1248 ICE PRODUCTS: A S C Secunty Systems (734)416-5550 Hershey Creamery (734)4494301 Van Buren (734) 397-2700 Arctic Glacier, Inc (810)987-7100 Bellanca Beattie DeLisle (313)882-1100 I & K Distnbutmg (734) 513-8212 Port Huron (810)982-8501 International Ice, Inc (313)841-7711 Binno & Binno Investment Co (248 ) 540-7350 International Ice (313) 841-77T Coors Brewing Co (513)412-5318 Quincy Ice Co (248) 968-4290 C Roy & Sons (810) 387-3975 International Wholesale (248) 5448655 Diageo 1-800-462-6504 U S. Ice Corp (313)862-3344 Calvin Zara Insurance Agency (248) 433-8508 Interstate Brands/ E & J Gallo Winery (248)647-0010 Carttronics. Inc (760)707-1265 Wonder Bread/Hostess (586) 792-7580 Eastown Distributors (313)867-6900 INVENTORY SERVICES: Cateraid, Inc (517) 546-8217 Jerusalem Foods (313)538-1511 Faygo Beverages Inc (313)925-1600 Action Inventory Services (586) 573-2550 Central Alarm Signal (313)864-8900 Kaps Wholesale Foods (313) 567-6710 Future Brands (248)471-2280 Goh's Inventory Service (248) 353-5033 Cherry Marketing Institute (517)669-4264 Karr Foodservice Distnbutors (313)272-860 Galaxy Wine (248) 363-5300 Clear Rate Communications (734)427-4411 Kay Distnbutmg (616) 527-012C General Wine & Liquor Co (313)867-0521 INSURANCE: Closed Circuit Communications (248) 682-6400 Liberty Wholesale (586) 755-3829 Great Lakes Beverage (313) 865-3900 AAA Michigan 1-800-AAA-MICH Constellation New Energy (248) 936-9027 Lipan Foods (586)447-3500 Great Lakes Distnbution (810)794-1300 AFLAC (248)968-9884 Ext 103 Cox, Hodgman & Giarmarco, PC (248) 457-7000 Metro D Sales (734)4168888 Hansen's Beverage (313)575-6874 Al Bourdeau Insurance Services, Inc (248) D J King & Associates 1-800-781-5316 Mexico Wholesale (313) 554-0310 Hubert Distributors, Inc (248) 858-2340 855-6690 Diamond Financial Products (248) 331-2222 Michigan Quality Sales (313)255-7333 Intrastate Distributors (313)892-3000 Capital Insurance Group (248) 333-2500 Dragon Systems (231) 876-1926 Nash Finch (989) 777-1891 J Lewis Cooper Co (313)278-5400 Gadaleto Ramsby & Assoc 1-800-263-3784 DTE Energy (313)237-9225 Nat Sherman (248) 202-73* Jones Sodas (269) 382-4200 Frank McBride Jr.. Inc (586) 445-2300 Excel Check Management (248) 787-6663 Norquick Distnbutmg Co (734)254-1000 Josulete Wines Inc (313)538-5609 Meadowbrook Insurance (248) 358-1100 Financial & Marketing Ent (248)541-6744 Robert D Arnold & Assoc (810) 6358411 Kent Beverage Co Inc (616)241-5022 North Pomte Insurance (248) 358-1171 Freedom Systems Midwest Inc (248) 399-6904 Royal Distnbutors of Ml (248) 350-1300 McCormick Distilling Co (586) 254-5650 Rocky Husaynu & Associates (248) 851-2227 Gadaleto, Ramsby & Assoc 1-800-263-3784 S Abraham & Sons (616) 4558356 Michigan Grape & Wine Great Lakes Data Systems (248) 356-4100 Sara Lee Coffee & Tea (734)414-0433 Industry Council (517)373-1104 MANUFACTURERS: Guardian Alarm (248)233-1645 Shaw-Ross International Importers (313) OTJ-TOT1 Miller Brewing Company (414)259-9444 Art One Sign Expo, Inc (248)591-2781 ICU Surveillance (248) 255-6419 Sherwood Foods Distnbutors (313) 368-3100 National Wine & Spnts 1-888-697-6424 General Mills (248)465-6348 JJ Secunty Systems (847) 668-2666 Spartan Stores Inc (734)455-1400 1-888-642-4697 Jaeggi Hillsdale Country Cheese (517) 368-5990 Kansmacker (248) 249-6666 Suburban News Southfield (248) 945-4900 Paramount Coffee (517)372-3330 Old Orchard Brands (616)887-1745 Karoub Associates (517) 482-5000 Supervalu Central Region (937) 374-7874 Pepsi-Cola Bottling Group Red Pelican Food Products (313)921-2500 Market Pros (989) 235-5775 Tiseo’s Frozen Pizza Dough (586) 566-5710 - Detroit 1-800-368-9945 Singer Extract Laboratory (313)345-5880 Metro Media Associates (248) 625-0700 Tom Macen & Son, Inc (313) 568-0567 - Howell 1-800-878-8239 Strauss Brothers Co (313)832-1600 Milentek-Energy Tony's Pizza Service (616) 7958220 - Pontiac (248) 334-3512 Conservation Service (248) 932-1222 Total Marketing Distnbutor (734) 641-3353 Perk and Brew Corp (734 ) 669-8380 MEAT PRODUCERS/PACKERS: Optimal Payment Systems (248 ) 540-7900 US Ice Corp O 13) 862-33* Pernod Ricard USA (630) 922-6484 Bar S Foods (248)414-3857 Paul Meyer Real Estate (248) 398-7285 United Wholesale Grocery (517) 267-980C Petitpren, Inc (586)468-1402 Indiana Packers Corp (765) 564-7206 POS Systems Group Inc 1-877-271-3730 Value Wholesale (248) 967-29W Sara Lee Coffee & Tea (734)414-8433 Kowalski Sausage Company (313)873-8200 Power One (734) 455-2500 Weeks Food Corp (586) 727-353= Wine Institute (313)882-7630 Seven-Up of Detroit (313)937-3500 Nagel Meat Processing Co (517)568-5035 Premier Energy Marketing 1-866-348-7605 Tri-County Beverage (313)584-7100 Strauss Brothers Co (313)832-1600 Prepaid Legal Services (586) 777-9700 (586) 294-9390 Wolvenne Packing Company (313)568-1900 REA Marketing (989) 386-9666 ASSOCIATES Vintage Wines (313)427-4444 Sagemark Consulting Inc (248)948-5124 Amencan Synergisbcs (3131 5*7-22* BROKERS/REPRESENTATIVES MEDIA Shimoun Yaldo & Associates PC (248)851-7900 Canadian Consulate General (248) 588-236* Bob Arnold & Associates (248) 646-0578 The Beverage Journal 1-800-292-2896 Salim Abraham Broker (248 ) 349-1474 Wileden & Associates CrossMark (734) 207-7900 Booth Newspapers (734) 994-6983 Secure Checks (586) 758-7221

3 8 | AFD Food & BeverageREPORT Credit card security worries retailers Retailers are concerned that they on them rather than the retailer.’ Duncan said. companies know the numbers might bear the brunt of lapses MasterCard was quick to point In typical credit card fraud, such that were stolen and could spare in credit and computer security, out that the “breach happened at as the stolen wallet kind, the burden merchants from having to jump including the breach that led to CardSystems Solutions. It’s not a of proof is on the store in which through hoops. hundreds of thousands, and perhaps breach of MasterCard security, that’s an illegal transaction occurred. Who would pay “depends on the millions, of credit card numbers very important,” said spokeswoman Merchants have to prove they nature of the fraud,” said Leslie being stolen from a credit processing Jessica Antle. followed security procedures, such Sutton, a spokeswoman for Discover. center that was disclosed last month. “We retailers very much hope that as checking a card for a signature, or “It’s determined on a case-by-case American business suffers roughly the card issuers will do the right they must pay. basis. ... Until the investigation is $50 billion in annual losses from thing. It's in their power to do that,” This time, Duncan said, the credit completed, I really wouldn't know.' credit card fraud, including identity theft, Federal Trade Commission Chairman Deborah Platt Majoras told If you sfill have | a Senate panel. Consumers can’t be For more information regarding our fhe original held responsible for more than $50 |g£gg|jgj machine, or to compare to our Kansmacker, of fake charges, according to federal competitors, visit our web site at law, and many credit companies call us for absolve them of that - choosing to repairs or tune | www.kansmacker.com hold the merchant responsible. up specials. “The system assumes that somehow the retailer is at fault for the fraud happening in their stores,” Elizabeth Oesterle. the National Retail Foundation's government relations counsel, said. M&mm/KXttL The issue flared after the credit processor, Atlanta-based BRAND REVERSE VENDING MACHINES CardSystems Solutions Inc., was found to have compromised as many Kansmacker's as 40 million credit card numbers when a hacker apparently broke into COMPACT STAINLESS its system at an Arizona facility last month. STEEL MACHINE: At least 200,000 numbers are confirmed stolen from CardSystems, NUMBER ONE FOR: which processes credit transactions for small and mid-sized businesses. • Cleanliness About 68,000 of them came from MasterCard International Inc., which • Durability said it discovered the breach through its security monitoring system. • Efficiencym Store owners - particularly small to mid-sized merchants who don’t know • Service bow to fight the system - frequently end up paying for fraudulent charges • Speed made in their establishments, ' Two \ Our new machines are Oesterle said. Machine Sizes SIMPLE! • EASY TO CLEAN! Harold Smith, a manager at to Choose From! Acoustix Clothing in Baltimore, said See our new bis small business had to pay $1,300 Ask abo ut a Compact Model' Plastics & when a stolen card was used there Cans Front or — ◄ during the past year. The credit card REE T R IA L - Rear End Unloader ^panies “take their money right n o OBLIGATION! °ffthe top,” Smith said. Machine only ^ 9 The National Retail Federation 32" wide! 1S asking credit companies to beef UP security by adding PINs to their For more information regarding KANSMACKER BRAND REVERSE ^ds to help avoid fraud altogether. VENDING MACHINES, please contact NICK YONO at ^e did not create these cards. It’s . * system,” said Mallory Duncan, Soup's chief counsel, referring ^ fhe credit card providers. “When a 800-379-8666 or 248-249-6666 **** ef takes advantage of the flaws in system, the First burden should be

A u g ust 2005 | 3 9 Looking for Brands Customers Recognize & Trust?

W e're on a Roll.

For information on how Spartan Stores can help your business succeed call 616-878-2248 or visit our web site at www.spartanstores.com