THE

All That’s News in the Food Industry of Food Marketing www.griffinreport.com January 2010 Volume 44 No. 01 Report Food Service Report The C-Store Report New Channels Report

Big Y Makes Store Changes ...... A2 Alex Ray Named To Food Industry Hall of Fame ..B1 Law Aims To Eliminate Old Fuel Tanks ...... C1 Kehe Foods Buy Tree of Life ...... D1 J’OH To Purchase Mid Atlantic Broker ...... A7 Sourcing, Nutrition Top Menu Trends for 2010 ....B1 7-Eleven Buys N.E. Pantry ...... C1 CVS Outdated Products Draws Concern ...... D1 Making HBC Your New Year’s Resolution ...... A7 Famous N.Y. Restaurant Up For Auction ...... B1 Hess Express Has Top Manager In Kathy Carter ..C1 Tips For Resonating With Older Consumers ...... D1 Kraft Sells Pizza Business To Nestle’ ...... A8 R.I. Honors Its Stars Of The Industry ...... B4-5 Cathy Barber Is First NECSA Board President ...... C4 A Healthy Happy You In 2010 ...... D1 NOTHING PERSONAL Food Industry Mourns The Loss Of Bill Grize illiam J. (Bill) Grize II , for - the Stop & Shop Supermarket Company, mer president and chief exec - and then in 1993 he was promoted to Wutive officer of the Stop & Shop executive vice president of retailing. Supermarket Co. and Ahold USA, Inc., In 1994, Mr. Grize was named Stop passed away Jan. 5 after a brief illness. & Shop’s chief operating officer. In BY KEVIN GRIFFIN According to Stop & Shop officials, 1996, he added president of Stop & PUBLISHER Mr. Grize, who retired from Ahold in Shop to that title. At the close of 1997, 2005, leaves behind a legacy of amazing at the age of 51, Mr. Grize was named We All Lost A Champion In dedication, firm commitment and gritty president and chief executive officer of determination. Stop & Shop. Bill Grize Mr. Grize had recently been diag - Under his leadership, Stop & Shop’s The food world has lost a champion in the pass - nosed with Creutzfeldt-Jakob Disease, a sales grew 22 percent from $5.5 billion ing of Bill Grize . He touched so many as the leader rare degenerative fatal brain disorder in 1997 to $6.7 billion in 1999, accom - of Stop & Shop and Ahold USA and those who met whose cause is unknown and for which panied by substantial growth in the com - him at many food-related events and functions. there is no known cure. Unfortunately, pany’s operating profits. In 2000, Mr. Almost five years ago in April, at a standing- the disease progressed very rapidly and Grize was appointed president and chief room event at Lombardo’s in Randolph, Mass., led to his untimely death at 63 years old. executive officer of Ahold U.S.A., Inc. more than 900 people, including Stop & Shop, Faith Weiner , Stop & Shop senior Subsequently, in 2001 Mr. Grize was Giant, Bruno, and Tops staffers as well as labor and director of public affairs, said Mr. Grize’s appointed to the Royal Ahold Corporate leaders, suppliers of Ahold and friends of Bill passing is a great loss to the Ahold USA Executive Board. Grize, came to honor him as he retired from Ahold retail family and the supermarket indus - Ms. Weiner said that during his USA and Stop & Shop. try. His career spanned nearly four career, Mr. Grize was well known in the Lombardo’s was a sea of food-trade represen - decades, and his innovative ideas and food industry as a person with extraor - tatives who came to celebrate 38 years that Mr. strong work ethic made him an inspira - dinary passion for people. Grize worked for Stop & Shop and Ahold USA. tion to associates across the company. He believed that his company’s man - Those who spoke, as well as a video, empha - “Our deepest sympathies are with agement had both a civic and business sized Mr. Grize’s strength as a leader of all kinds Bill’s beloved wife of 43 years, Emelyn , obligation to provide diversity in the of people, his attention to detail, his ability to solve children, grandchildren and his entire stores and corporate offices in order to problems and not to fear them, and his general extended family including the thousands serve the needs of the customer and the kindness and generosity. Before coming to a store, of associates and colleagues whose lives community. he made it his business to know everyone’s name he touched,” said Ms. Weiner. In 2005, the Food Marketing Insti - in that store. Danny Wegman , head of of Mr. Grize grew up in Waterbury, tute (FMI) awarded Mr. Grize the pres - Rochester, N.Y., said in the video that Mr. Grize Conn., and graduated from Croft High tigious Sydney R. Rabb Award in appre - always put people ahead of himself.” School, where he met his wife, Emelyn. as a teenager, working for five years at clerk in the local Waterbury store. Over ciation of "his exceptional service to the Don Sussman of Stop & Shop also said that He then earned a B.S. in economics a beef company doing case - the years, Mr. Grize quickly rose in the community, consumers and the indus - “only when you were up did he [Mr. Grize] beat you from Southern Connecticut State Col - work and performing cutting duties. ranks of Stop & Shop’s Connecticut Divi - try." up. When you were down, he was there to help you.” lege. Then, in 1967, he began his storied sion. In 1990, he became senior vice He served as a member of the Exec - Mr. Grize had a passion for the business and Mr. Grize entered the food industry career at Stop & Shop as a part-time president and general sales manager of (Continues on page A4 ) was always in the pursuit of excellence. Bob Tobin , another revered leader at Stop & Shop and Ahold, said Mr. Grize always stood out as someone who was very passionate, very artic - Senator Pleads ulate, and who set high standards, a man of high GIANT/MARTIN’s To Acquire integrity, and whose motto was that the team is more important than the individuals. To Slow Penn As an industry leader, Mr. Grize was a longtime Ukrop’s supporter of the and Connecticut Food Associations, the Food Marketing Institute, Traffic Sale the Joint Labor Management Committee in Wash - ington, D.C., the Coca-Cola Retailing Research n Jan. 5, U.S. Senator Charles E. Schumer of New Council, the Private Industry Council of and York sent a letter to the heads of GE Capital and INROADS of Central . This is a nation - OPenn Traffic asking them to slow the process and al organization that matches high achieving col - not accept a liquidation bid for Penn Traffic that would lege students of color with business internship shutter many stores and lead to possible significant job opportunities. loss. A strong supporter of Stop & Shop’s communi - Penn Traffic, which has filed for Chapter 11, is search - ty partnership programs, Mr. Grize was a trustee of ing for buyers for its 79 stores in and surround - the Dana Farber Cancer Institute. He was also a ing states. member of the Jimmy Fund’s Partnership Advisory Reports to Senator Schumer’s office indicate that that Board at the Dana Farber Cancer Hospital in Penn Traffic was pushing for a decision to be made by Jan. Boston and one of the fund’s most vocal advo - 8—well ahead of the previously established court date for cates. bids of Jan. 22. Mr. Grize, in his closing remarks at the Lombar - According to Senator Schumer, a decision that priori - do’s event, talked of the lessons learned from Mr. tizes a liquidation bid would likely result in a large portion Tobin, and that Stop & Shop and Giant were of the stores being liquidated. Senator Schumer urged the blessed with great people. He credited Sidney major players in the Penn Traffic negotiations to not accept Rabb, Avram Goldberg, Lew Schaeneman, and Mr. any low-ball liquidation bids offered by this Friday, Jan. 8 Tobin as his mentors and praised them for their iant-Carlisle, a division of transaction includes 25 stores, as part of the sale process. Cus - and instead to prioritize bids that maximize the greatest leadership skills. Ahold USA, increased its inventory, equipment, lease agree - tomers should expect to find the (Continues on page A7 ) At this event, a scholarship in Mr. Grize’s name Gpresence in last ments and one new store location. same friendly store teams, excel - was established by Stop & Shop, and he was given month with the announcement that Stores are located in the Greater lent customer service and quality a gift of a Steuben Crystal hand-carved heart with Royal Ahold would acquire 25 Richmond and Williamsburg, Va., foods that they have always found Celebrating RIFDA’s 100th the inscription, “For Bill Grize, whose heart is big stores from Ukrop’s Supermarkets. areas. at their local Ukrop’s.” enough for the entire company.” Giant-Carlisle operates more John Rishton , chief executive The Giant-Carlisle Division Anniversary As we were going to press, we learned that In than 150 stores in , officer of Ahold, said, “This acqui - operates 152 stores in the states of lieu of flowers, memorial donations may be made Virginia, and West Vir - sition is part of Ahold’s profitable Pennsylvania, Virginia, Maryland to “The Journey of Hope Campaign,” which is for ginia under the names of GIANT growth strategy. Ukrop’s is a great and under the names the New Dana Farber , Brigham and Women’s, and MARTIN’S. Giant-Carlisle company with a strong heritage in of GIANT and MARTIN’S, including South Shore Hospital Cancer Center, 55 So, Wey - employs more than 26,000 full- an attractive market. We believe nine stores in Virginia that operate mouth, Mass. 02190. and part-time associates. that Giant-Carlisle and Ukrop’s will as MARTIN’S. “We may be new to Condolences can be made to Mrs. William G. Ukrop’s employs approximate - be a strong combination. Richmond, but we’ve operated in Grize II (Lynn), P.O. Box, 882, E. Dennis, Mass. ly 3,900 full- and part-time associ - “This acquisition is an excep - Virginia since 1984,” continued 02461-0882. ates in 25 stores and a corporate tional fit for two companies that Mr. Herring. “We’re excited about Bill was a longtime great friend to the Griffin - support center. Giant-Carlisle will share common values including a introducing ourselves to the com - family, and a true believer in our efforts here at The hire Ukrop's store associates. The commitment to our associates, munity.” Griffin Report. May God welcome him into The King - purchase price is approximately customers and communities,” said "We believe that the (L-R) Lou Furcolo of Dave's Fresh Market, George dom of Heaven and bless his soul- He will be truly $140 million. The closing of the Rick Herring , division president GIANT/MARTIN’S combination of Pelletier of Shaw's Supermarkets, Steve Arthurs , new missed. transaction is expected to take of Giant-Carlisle. “It is our goal to global strength and local focus will RIFDA executive director, gathered at the place in the first quarter of 2010. build on the heritage of a great provide an even greater shopping Food Dealers 100th anniversary event and annual meet - Ukrop’s is a family-owned busi - company and ensure the least experience for our customers, ing held recently at the Hyatt Regency in Newport, R.I. See page A9 for more information. ness based in Richmond, Va. The amount of disruption to customers (Continues on page A4 ) INSIDE C-STORE 7-Eleven Tests Mobile Marketing Cathy Barber Is First NECSA Page C7 Board President ...... C4 Veteran NACS Staffer Teri Richman Remembered ...... C4 Rutter’s Opens Largest C Environmental Store To Date ...... C3 Focus On Bakery ...... C8-C11

January 2010 • Volume 44 No. 01 www.griffinreport.com

All That’s News In The Industry New Year In Fla. Means Rutter’s Farm Stores Opens Largest Environmentally Out With The Old Tanks Friendly Store To Date

(See page C3 for details.) C-STORE HAPPENINGS CHEVRON TO DEBRAND 1,100 STORES IN EASTERN U.S. Chevron announced plans to debrand about 1,100 stations in Washington, D.C., and 12 states by the A failed steel-clad underground storage middle of 2010. Other major gas retailers such as tank is unearthed in Florida. BY GAVIN SMITH BP PLC, Corp. and ConocoPhillips have ground storage tanks and above ground have yet to comply. However, for that per - operators have multiple tanks, a better announced plans to divest their retail assets over he new year may not be a happy one storage tanks) to upgrade to new double- centage, the deadline was daunting. assessment is made of the overall progress the past 18 months because of low profit margins. for many Florida petroleum busi - walled tanks by Dec. 31, 2009. Those that According to the Florida Department of the operators themselves. States impacted include Delaware, , Ken - nesses thanks to sweeping new reg - have yet to heed the warnings may be in of Environmental Protection, there are “Facilities with Underground Storage tucky, , New Jersey, Maryland, , T ulations put in place by the Florida Depart - big trouble with the State of Florida, or may over 26,500 underground fuel storage Tanks (USTs) that require upgrade is Pennsylvania, South Carolina, Virginia, West Virginia, ment of Environmental Protection. even find themselves out of business. tanks and over 700 above ground fuel 1,345, or 15 percent, of the 8,785 UST Washington, D.C., and parts of Tennessee. The sta - The new laws required all businesses According to the Florida DEP, there are storage tanks that have yet to be replaced facilities,” said Marguerite Jordan , pub - tions account for about eight percent of U.S. sales with single-walled USTs and ASTs (under - only a small percentage of locations that in Florida. Keeping in mind that most volumes. (Continues on page C3 ) The company is focusing its efforts on the West Coast and will concentrate on markets where it has a bigger presence. Training Is A GEO. GREEN OIL OF GA. RAISES 7-Eleven Purchases $21,690 FOR STOCKING FUND Passion For New England Pantry Award- Winning Hess Express Manager Pictured here are Linda Bowdoin , Sandrea Candiotti , and Donna Nichols in the official check presentation Kathy Carter at Green Oil. BY LIBBYE MORRIS Geo. H. Green Oil, Inc. of Fairburn, Ga. has day in the life of a convenience store announced great success in its efforts to raise manager is hectic, customer-focused money for Greater Atlanta’s Empty Stocking Fund, and full of cleaning that never seems Welcome House of Newnan, Ga. & In His Great A to get done, but the most rewarding task of Name Ministry, Fairburn, Ga.. all is training employees to become man - In a year when charities all over the country have agers. fallen far short of previous totals, The Green Oil, This statement comes from Kathy Carter, Greenway Store Team surpassed last years total by who was named the 2009 Store Manager of more than seven percent. Three very dedicated the Year by the South Carolina Association company operated stores averaged $537 a day for of Convenience Stores (SCACS). 28 days to achieve some $15,000 of the $21,690 “There’s nothing better than to know that raised. you took someone from a senior sales asso - The balance came from weekly “Silent Auctions” at ciate to an assistant manager, and then they the Green Oil, corporate Headquarters with items get promoted to manager,” Ms. Carter said. furnished by loyal Vendors, along with a helping Here is one of the newer New England Pantry stores in Northboro. All of the N.E. Pantry stores were sold in December to 7- “I know that when I promote that person, hand from a few supportive dealer Stores and thou - Eleven. they’re going to do a very good job for the sands of customers. company, and they’ll also get a financial Owners Ed & Bill Wyatt told employees: “We are to continue that tradition.” area where we have close to 120 stores reward. That’s satisfying to me.” continually astounded by, your compassion and ew England Pantry, White Hen’s Andy Brothers , who has served as was important to us – we can now have It can take six months to a year to pro - effort in raising great sums of money for area chil - franchisor in the New England the New England better efficiencies in advertising and dis - mote a quality employee to the next level. dren in need. Through your dedication more than area, was sold in mid December stores chief executive officer, will join 7- tribution, for example,” said Ms. “It’s quite an investment of time, but it’s 1,080 children woke up with Christmas toys, cloth - N to 7-Eleven, significantly expanding 7- Eleven’s management team and will sup - Chabris. worth it because later, the company definite - ing, educational material and renewed hope. Eleven’s presence in the greater Boston port the transition. He said, “The acqui - White Hen was a chain of nearly 260 (Continues on page C3 ) C-STORE and New England area. sition of New England Pantry by 7-Eleven mostly franchised owned convenience LATEST WORD… On Dec. 16, 7-Eleven, Inc. will provide our customers, franchisees stores located in the greater and announced the acquisition of New Eng - and employees with additional opportu - New England areas. In 2001, owner • stores offered free land Pantry, a company that operates 58 nities by joining the leading convenience Clark Retail Enterprises sold its 55 White to its customers from 5 p.m. Dec. 31 to 5 a.m. on convenience stores under the White Hen retailer’s store network. Franchises will Hen Pantry stores in Massachusetts and Jan. 1. The free coffee was available to all Cumber - Pantry brand, from affiliates of Sanders be able to capitalize on 7-Eleven’s brand to New England Pantry. land Farms stores across the Northeast and Flori - Morris Harris Group Inc., a Houston- strength, extended line-up of proprietary The deal allowed New England Pantry to da except for those with Dunkin’ Donuts service. based wealth management firm. Finan - and private label products, and proven be the exclusive franchisor in the New • Blockbuster has announced a “Good Grades, cial terms of the transaction were not business system.” Mr. Brothers and the England area. In 2006, White Hen Pantry Free Rental Program," in which children in K-12 disclosed. New England Pantry management team was purchased by 7-Eleven and the who earn an A or B average on their report cards The acquisition significantly will continue to work out of their Nor - can receive a Blockbuster Favorites movie rental. expands 7-Eleven’s presence in the wood, Mass., office. • was listed at number 25 on the list of greater Boston area, bringing the num - The company anticipates that stores top 50 large companies on the state’s Best Places ber of outlets 7-Eleven operates and operating under the White Hen Pantry To Work. franchises to more than 170. brand will begin converting to stores to • is upping its promotion of franchis - “This acquisition significantly the 7-Eleven brand in 2010. ing in Florida with extensive training and promo - strengthens our convenience offering in Margaret Chabris , 7-Eleven tional tools. greater Boston,” said Bob Cozens , vice spokesperson, said 7-Eleven has asked • Lifeway Foods, makers of a probiotic dairy president for 7-Eleven’s Northeast Divi - the franchisees, store and office employ - Kathy Carter of Hess Express receives the beverage called Kefir, will be expanding their dis - sion. “White Hen Pantry has a 40-year ees to stay on during the transition. She association’s Store Manager of the Year tribution to include the 7-Eleven convenience store history of providing good customer serv - said it was too soon to say what mer - Award from David Jordan , who is the SCACS chain. ice and high-quality products to con - chandise will change or stay. President and the vice president of market - sumers in the Boston area and we want “The fact that these stores are in an (Continues on page C5 ) ing and chairman of the Board at RL Jordan Oil Company.

"SF:PV3FBEZUP4UFQ6QUP&.BJM.BSLFUJOH The Griffin Report of Food Marketing C3 Quick-Piks Florida Tanks Replaced... NACS Launches Biggest Consumer Petition Drive (Continued from page C1 ) systems improves the protection of our More than 8,000 convenience retail stores have signed up water resources and prevents future as part of the biggest consumer petition drive in American lic information officer for the Florida petroleum contamination cleanup sites,” history, according to the National Assn. of Convenience Stores. Department of Environmental Protec - said Ms. Jordan. The goal of the petition drive is for retailers and their cus - tion. “Facilities with Aboveground Stor - Officials also argue that, according tomers to tell Congress, “It’s time to reform unfair credit/debit age Tanks (ASTs) that require upgrade to environmental studies, the current card swipe fees.” This fall, 7-Eleven franchisees delivered is 332, or less than 3 percent, of the single-wall systems pose public health nearly 1.7 million customer signatures to Congress — the 11,227 AST facilities.” and environmental risks due to an largest number of signatures collected for a public policy issue While the benefits of the new double- increased likelihood of leakage. They in history — urging congressional leaders to “stop unfair walled systems are debatable, the new argue that there is a significant risk that credit card fees.” law is not. According to Ms. Jordan, leaks could affect the state’s drinking Beginning Dec. 15, NACS began to coordinate a campaign retail facilities such as gas stations and water supplies. According to the DEP, to generate millions more signatures from convenience cus - convenience stores that did not met the groundwater provides more than 90 tomers, encouraging Congress to reform unfair credit and deadline at the end of the year face three percent of the drinking water in the state debit card interchange, or “swipe,” fees available options. of Florida. Both 7-Eleven CEO Joe DePinto and Alimentation First, if businesses have a contract Many in the petroleum industry dis - Couche-Tard CEO Alain Bouchard, who led his company’s in place to have the upgrade work per - agree, including Mr. Smith. Some think credit card interchange petition drive that collected 400,000- formed, they will be granted a three- there may be a more political than prac - plus customer signatures at its Circle K stores, urged retail - month extension beyond the deadline. tical purpose for the new laws. ers to launch their own petition drive in their stores in a video Second, operators may remain in busi - “I can tell you that as an industry we introduced at the NACS Show in Las Vegas in late October. All ness after the deadline if non-compliant have seen a significant number of single of the materials retailers need to participate in the latest peti - tanks are taken out of service or perma - wall fiberglass clad steel tanks that were Here is an n example of a potentially hazardous above ground storage tank, one tion campaign are available free of charge at www. nacson - nently closed. Third, if businesses need in the same shape at removal as they of many required to be replaced in Florida. line.com/fightswipefees. more time to have the upgrades done, were in their initial installation,” said Mr. they can work with the department to Smith. “Those tanks should have been Diedrich Coffee To Merge With Green enter into a consent order designed to allowed to go to a useful life situation but Mountain Coffee Roasters achieve compliance within a specified Florida law does not permit such an On Dec. 8, Diedrich Coffee, Inc. decided to enter into a period. option.” merger agreement with Green Mountain Coffee Roasters, Inc. This may be a relatively painless fix In fact, the new law allows for puni - and terminated discussions with Peet’s Coffee & Tea. As of for larger gas station companies and tive efforts by the state if operators do Dec. 2, Diedrich Coffee called Green Mountain’s offer a “supe - conglomerates that have easier access not conform. rior proposal and gave Peet’s until 5:00 p.m. Pacific time on to capital and contractors ready to do “Fines or penalties will be assessed Monday, December 7, to update and amend its offer. Diedrich the work. The concern, however, is with for each facility depending on that facil - Coffee markets three brands of specialty , Diedrich Cof - smaller, independent operators. Many ity’s specific situation,” said Ms. Jordan. fee, Coffee People and Gloria Jean's Coffees, through office small petroleum businesses cannot get “A facility that does not complete the coffee service distributors, restaurants and specialty retailers, the work done in time, facing long waits upgrade and ceases fueling operations and via the company's web stores. Diedrich Coffee is one of for permits and the lack of available con - on or before the deadline will likely not only four roasters under license to produce K-Cups for tractors that specialize in tank installa - be fined. A facility that refuses upgrade Incorporated's single-cup brewing system. tion. For those struggling to find the and does not cease operations will face money during the current economic cli - fines levied by the courts.” PepsiCo Opens New Haven Research mate, these costly new upgrades may When asked about specific amounts Lab To Develop Healthier Products simply drive many small operators out for fines, the DEP remained non-specif - PepsiCo. recently announced it will open a long-term of business. ic. “The department may seek injunc - research laboratory in New Haven with a focus on the devel - “The average cost (of the upgrade) tive relief to require tank closure, as well opment of healthier food and beverage products. The com - is around $250,000 per site,” said Jim as the assessment of penalties,” said Ms. Pictured are new double-walled above ground storage tanks that comply with new pany also will fund a graduate fellowship in the M.D.-Ph.D. Smith , president and chief executive Jordan. AST/UST laws put in place January 1 by the Florida Dept. of Environmental Program at Yale School of Medicine to support research relat - officer of the Florida Petroleum Mar - While legal concerns are an issue, Protection. ed to nutritional science. keters and Convenience Store Associa - the immediate business impact on oper - The opening of the new lab in Science Park, adjacent to tion. “The biggest difficulty for those still ators may be more significant. Yale's campus, is part of a major shift by PepsiCo to funda - needing to upgrade is financing. Loans “As it stands right now if you have a mentally improve the nutritional profile of its vast portfolio of are non-existent. There is also the prob - contract in place for tank replacement foods and beverages. Within the past two years, the compa - lem of permitting. In South Florida, it you will be allowed to operate until ny has added clinical scientists and experts in nutrition, food can take more than six months. “ installation,” said Mr. Smith. “If you safety, epidemiology and health policy to its staff. Ms. Jordan agrees with Smith’s finan - have no contract you will be required to "Ultimately, we're trying to make it easier for consumers cial read. immediately take your tanks out of serv - to lead healthier lifestyles," said Dr. Mehmood Khan , Pep - “The primary reason that causes a ice. That last scenario will no doubt siCo's chief scientific officer and an endocrinologist. "We're delay that has been conveyed to the cause a number of facilities to go out of confident that the work we'll be doing in New Haven, in col - department is the inability to secure business. My guess would be 10 percent laboration with some of the world's best scientists, will lead financing due to current financial mar - of the state’s retail facilities, or about 900 to advancements in nutrition and health for people across the kets,” she said. sites, will meet that fate.” globe." Upgrading the tanks may come with But according to Mr. Smith, the con - The group based in New Haven will focus on long-term a hefty price tag for operators. But sumer may also feel the changes. research aimed at developing healthier foods and beverages according to the Florida DEP, not “I have always believed that when that can improve people's overall diets. The lab will be Pep - upgrading the tanks may be more cost - you eliminate competition in any mar - siCo's ninth global regional research center. Four centers are ly to Florida’s environment and to its cit - ketplace the consumer generally loses,” located in the with others in the United King - izens. Officials insist that the new dou - said Mr. Smith. “Bottom line is we won't dom, Mexico, China and India along with satellite centers in ble-walled systems will catch leaks really know the full impact until April.” Thailand, Brazil and Australia. before they can contaminate surround - PepsiCo has already begun its shift to a healthier portfo - ing soil and groundwater. lio of foods and beverages. For example, in the United King - “The secondary containment One of the new underground storage tanks going in all over Florida. Over 20,000 dom and Europe, PepsiCo has introduced Baked Lay's and requirement for all petroleum storage have been replaced in Florida as required by new AST/UST laws in effect. Baked Walkers with 70% less total fat than regular crisps. In the United States, Tropicana Pure Premium Orange Juice has two servings of fruit in every 8-ounce serving and offers a juice variety with added calcium and Vitamin D. In India, PepsiCo is using rice bran oil instead of palmoline oil, Hess Express, Kathy Carter... which has reduced saturated fats by 40 percent. (Continued from page C1 ) ing quality people, people who know nel staffed and leave it in a good posi - Everything else you can work on.” PepsiCo To Distribute Certain Dr. ly benefits from it,” she said. what they are doing,” she said. “I’ve tion before I went on to my next assign - Working exclusively from her store Pepper Group Brands “I hire very capable people, and I worked with and trained some really ment,” Ms. Carter recalls. “I did at least in Charleston, Ms. Carter’s typical week PepsiCo has reached an agreement with Snap - really believe people don’t ever think good managers over the years. One time six stores before I settled down into my consists of making sure her store stays ple (DPS) Group, Inc. (DPS) to manufacture and distribute they’ll only be good enough to just run we went to a kickoff meeting, and it current store.” competitive in the gas pricing market certain DPS products following completion of PepsiCo's acqui - the register. I always spend a good bit of came to my attention that I had devel - and in convenience product sales. She sition of its two anchor bottlers, The Bottling Group, my time every week taking that person oped and trained 60 to 70 percent of the Setting the Bar High makes sure that the store is fully stocked, Inc. (PBG) and PepsiAmericas, Inc. (PAS). to the next level. It’s just that gentle little managers in my area. I didn’t realize it “Her standards are high,” said Doug orders supplies and product, and keeps Under the terms of the agreement, DPS will receive an push: ‘You’ve got this down; let’s step it until somebody pointed it out to me.” Rohe, senior marketing representative up with Hess communications on a daily upfront payment of $900 million. In exchange, PepsiCo will up and teach you this now.’ That’s basi - Ms. Carter is currently a general for Hess Express. “Sometimes vendors basis, “because it’s a changing and evolv - be entitled to manufacture and distribute Dr Pepper and cer - cally my job in a nutshell.” manager for Hess Express, as well as the within her stores must go to the extra ing business.” tain other DPS products in the territories where they are cur - As with any management role, there certified training manager for her region mile to achieve her standards but, at the As a manager, she says she has to be rently distributed by PBG and PAS. is a down side to the personnel role, too. in South Carolina. Hess Express has end of the day, the customers are the on top of her game every day, and that Under the new agreement, PepsiCo will distribute: Dr Pep - “There sometimes comes a time about 1,360 retail marketing facilities winners. She recruits and trains the best involves cleaning the store—“always per, and brands in the United States; Dr Pep - when you have to cut an individual loose. serving customers in 16 states from New of the best.” cleaning”—as well as accounting for per, Crush, Schweppes, and Sussex brands in Cana - We can bend so much, but we all still do Hampshire to Florida. In South Caroli - In 2009, Hess Express ranked Ms. inventory and “constantly training my da; and and brands in Mexico. have a job to do,” Ms. Carter said. na, Hess operates 35 stores and employs Carter among the top eight managers in personnel.” She also interacts with cus - The agreement was anticipated after PepsiCo and its bot - “Because I have been with the company more than 400 people. WilcoHess, a the entire Hess organization. tomers frequently, and many of them tlers earlier this year reached an agreement under which Pep - so long and I am heavily vested in that joint venture with Hess Corporation, Her store is continually measured on remember her from a decade or more siCo would acquire the two anchor bottlers. stock, I am constantly aware that we operates about 25 locations in South a variety of metrics—profit levels that ago. PepsiCo also announced plans last week to open a long- have to answer to our customers and Carolina. have been budgeted for the year, Ms. Carter, who just turned 50, says term research laboratory in New Haven, Conn., with a focus ultimately our stockholders. That’s real - She has been in the convenience employee turnover and execution of she is finished moving around. Growing on the development of healthier foods and beverage prod - ly the bottom line. When you look at store industry for 23 years, and she has promotions. up in a military family, she moved a lot, ucts. what’s going on in the economy nowa - been with Hess for 21 of them. She start - Ms. Carter was raised by a military and she is now happy to be settled. She days, I want to know that when I go ed out as an assistant manager and held family who taught her to have high stan - moved to Charleston as a high school 7-Eleven Targets Manhattan For Major home at night, I did the best I could for that post for six months before being dards and to do everything with charac - senior, eventually made a couple of trips Store Growth our stockholders to make that profit, I promoted to manager. That position led ter and integrity. “And I think that bleeds to California and back to her home state 7-Eleven is expanding its presence in the New York metro did what was right for the customer and to challenges that showcased her man - over into everything that I do in life.” she of Florida, then came back to South Car - area with a major focus on New York City, and Manhattan I did right by my people.” agement aptitude. said. “Everything you do in life, you’ve olina. “I like stability,” she said. “I want specifically. 7-Eleven is looking to open 100 stores in the next When Ms. Carter arrived on the “Over the years, when a store wasn’t got to do it with passion. To me, that’s to stay where I am and train more peo - five years in Manhattan either by executing new leases or scene, there was no training program to performing, they would come to me and what makes any person successful. ple for the company. I love the Low through its business conversion program (BCP). speak of. “We have a great training pro - ask me to get it straight. And I would. I’d Character and integrity—those are Country, and I will never leave.” Ideal sites for 7-Eleven are from 1,700 to 3,500 square gram now. The key to success is in hav - go in, clean it up, get the store person - things that you come to the table with. feet in high foot-traffic locations that allow for 24-hour oper - ation. Under a company franchise arrangement, owners are invited to convert their existing business to a 7-Eleven store and become a 7-Eleven franchisee incorporating the compa - Rutter’s Farm Stores Opens Largest ny’s proprietary products, services, technology, and business processes. Under 7-Eleven’s traditional franchise model, the Environmentally Friendly Store To Date company develops the store site and then franchises the busi - ness to a qualified candidate. Nearly 300 food and other prod - utter’s Farm Stores recently Energy’s Retailer Energy Alliance, whose The store includes open ceilings, ucts are sold under 7-Eleven’s private-label brand of 7-Select. opened its newest store at 14 W. mission is to promote the energy-effi - floor and wall tiles, and restrooms with Quick Chek Donates More Than $2,200 RPennsylvania Ave., Stewartstown, cient design and operation of retail loca - floating ceilings, music and other York County, Pa. The 24-hour store – tions. upscale accents. To N.Y. Volunteer Fire Dept. Rutter’s biggest and most environmen - The store has 20 fueling positions In other company news, Rutter’s has Middletown, N.Y., Quick Chek representatives recently tally friendly store ever – created 40 (including four that offer diesel) in front announced charitable donations total - presented a donation of $2,214 to members of the Middle - jobs. The 5,750-square-foot store is the and two dedicated diesel islands in back, ing $204,000 to 30 organizations. town Volunteer Fire Department. The donation represents first Rutter’s to make use of skylights that as well as an all-glass, two-bay automat - These donations – in addition to pre - $0.25 for every sub, sandwich and wrap sold during the Mid - will reduce the need for artificial light - ic car wash. viously announced contributions total - dletown Quick Chek’s first 30 days in operation (Sept. 22 to ing. The 19 skylights complement a The 24-hour store features Rutter’s ing $56,500 to 11 food pantries – bring Oct. 21) following the store’s recent grand opening celebra - white roof, which will keep the building latest foodservice offerings, including a Rutter’s total 2009 giving to $260,000. tion. The new Quick Chek store, located at 1-9 County High - cooler while reducing energy demand. recently introduced dinner menu and Including 2009, Rutter’s charitable giv - way 108, (intersection of City Highway 108 and State High - In a couple of other Rutter’s firsts, kids meal; custom stir fry and fajitas; and ing has topped $2 million over the past way 17M), includes a coffee bar, sub shop, soup bar, bakery the store has energy-saving triple-glazed fresh-baked sub and ciabatta rolls. A seven years. Almost all of the contribu - items made fresh every day, a no-fee ATM center and 20 fuel - windows and all-LED exterior lights. Rut - premium-coffee island, touch-screen tions benefit children’s programs in the ing stations. ter’s recently became the first conven - ordering, seating for 15, public rest - communities where the York-based Rut - In other news, Quick Chek recently celebrated the grand ience store chain to join 32 other retail rooms and a surcharge-free M&T Bank ter’s companies operate. (Continues on page C4 ) organizations in the U.S. Department of ATM are among the other amenities.