The Voiceof the Nebraska Grocery Industry July / August 2012 We Thank Our 2012 Conference Sponsors: Platinum Sponsor ~ Shazam* Gold Sponsors: Bronze Sponsors: Affiliated Foods Midwest Advantage Sales & Marketing* Associated Wholesale Grocers American Italian Pasta* Anheuser-Busch Companies, Inc.* Coca Cola Bottling Arctic Glacier Premium Ice* ConAgra Foods Bunzl Packaging* Dean Foods/Land O’ Lakes Milk Cash Register Sales* Frito Lay, Inc. Commonwealth Altadis* Kraft Foods Diageo* Nash Finch Company Dr. Pepper/Snapple* Pepsi Cola Bottling Fareway Stores, Inc.* Bimbo Bakeries USA/Sara Lee Gopher News Company* Kemps Dairy* Well’s Enterprises, Inc. Lorillard* Nebraska Beef Council Silver Sponsors: Nebraska Pork Producers Acosta Sales & Marketing Omaha World Herald Crystal Farms R.J. Reynolds Tobacco* Farmland Foods Smart Chicken Sparboe Farms* Nebraska Lottery Tasty Toppings Retail Data Systems The Brenmar Company* Roberts Dairy The Harry A. Koch Company* The Mark Anthony Brand Inc.* Wimmer’s Meats *denotes Annual Sponsorship Chairman of the Board: Larry Baus Village Market, Wagner’s Food Pride Vice Chairman of the Board: Richard Cosaert CONTENTS Cubby’s Treasurer: Fred Witecy features & departments advertisers No Frills Supermarkets Executive Director: 3 Retail Food Inflation Drops To 3.4% Through July 4 Acosta Kathy Siefken 12 Advantage Sales & Marketing Nebraska Grocery 4 Calendar of Events OBC Affiliated Foods Midwest Industry Association 23 Altria 7 Rod Anderson Receives Plaque in Recognition of 20 Anheuser-Busch.com Directors: Service on the NGIA Board of Directors 16 Arctic Glacier Premium Ice Kirk Anderson 1 Associated Wholesale Grocers 10-11 NGIA Holds 2012 Annual Conference at Champion’s Pepsi Cola 23 Bunzl Club in Lincoln. 19 Cash Register Sales Rod Anderson 13 NGIA Annual Sand “Bagger” Golf Outing held 24 Cheyenne International, LLC ConAgra Foods 30 Commonwealth - Altadis, Inc. at Woodland Hills Golf Course 6 Coca-Cola Mike Brtek 17 Save The Date - Day in Washington, April 17-18, 2013 26 ConAgra Foods Lou’s Trhiftyway 12 Crystal Farms 17 You Have Questions...We Have Answers! 32 Dean Foods/Land O’ Lakes Milk Bob DeStefano 19 Diageo Nash Finch 17 Nebraska General Fund Receips As of July 2012 16 Dr. Pepper/Snapple Bottling Co. 9 Farmland Kelly Dingwell 20 FMI Holds “State Issues Retreat” 8 Farner-Bocken Affiliated oodsF Midwest 8 Fareway Stores, Inc. 21 Senator Deb Fischer Receives 5 Frito Lay Pat Hensley NGA Spirit of America Award 24 General Mills Convenience Hy-Vee 20 Gopher News Company 27-30 An Interview with the Gen Y Guy 22 Harry A. Koch Co. Bill Huenemann 12 Kemps 5th Street IGA 14 Kraft IFC Nash Finch Mark Hutson 18 Nebraska Beef Council Save Mart 16 Nebraska Lottery 18 Omaha World Herald Maurice Jantze 31 Pepsi Milford Supermarket 18 Retail Data Systems 30 R.J. Reynolds Mogens Knudsen 8 Roberts Dairy Plum Creek Market Place 15 Sara Lee IBC Shazam Bob Maline 8 Smart Chicken Maline’s Super Foods 19 Sparboe Farms 22 Swedish Match Steve Pirtle 4 Tasty Toppings Associated Wholesale 19 The Brenmar Company Grocers 22 The Mark Anthony Brands 25 Wells Enterprises, Inc. Pat Raybould 7 Wrigley’s B&R Stores 23 XCaliber International LTD. Russ’s Markets Super Saver Owned and Published by the: Nebraska Grocery Industry Association, Inc. Jim Rotella 5935 South 56th Street, Suite B, Lincoln, Nebraska 68516-3301, Phone: (402)423-5533 Rotella’s Bakery or 800-433-6742, E-mail: [email protected]. We retain the right to refuse any Ted Stessman advertisement or copy content deemed inappropriate or inconsistent with our goals Farmer Bocken 2 and objectives to serve our members. July / August 2012 Retail Food Inflation Drops To 3.4% Through July As reported by The Food Institute along price increases although they effectively did so earlier Retail food prices as reported by the Bureau of Labor this year. At the same time, however, sales at alternative Statistics declined in July versus the prior month and were retailers, such as warehouse clubs, supercenters and drug just 1.9% above year earlier levels. This brought the food-at- stores, have been stymied as well, moving down from year home inflation rate down for the seventh consecutive month, earlier levels or only marginally higher during April, May to 3.4%. And based on the downward trend in wholesale and June as shown below. prices, retail prices will likely continue to move lower in future months. Growth At Clubs & Supercenters Not Apparent For Three Months All center-of-the-plate offerings increased during the month For the third consecutive month, sales at the nation’s and compared to a year earlier, beef was up 6.6%, pork warehouse clubs and supercenters showed little change declined 1%, poultry increased 6% , and fresh and seafood from the prior year during June, increasing just 0.4%. This were up 1.6%. Meanwhile, fresh produce prices dropped brought cumulative 2012 sales at these outlets only 2.7% 1.3%, processed fruits and vegetables declined 1%, and more than the prior year - almost a full percentage point less than growth at food and beverage stores which we dairy declined 0.5%. Food away-from-home prices increased called tepid above. Even so, the Food Institute estimates, 0.2% during July and through the first seven months of 2012 these retailers sold over $100 billion of food products in the were up 3% from a year ago. first half of 2012 - about one-third of the amount sold in food and beverage stores. Drug store and pharmacy sales Wholesale Food Price Inflation Just 2.9% Through July continue to be negatively impacted by the introduction of The wholesale food price inflation rate dropped this month to generic versions of some blockbuster drugs late last year and 2.9% on an annualized basis through July. During the month, earlier this year, with sales dropping 3.6% from a year earlier the Producer Price Index for finished consumer foods did during June. And through the first half of 2012, drug store climb 0.2% from June however, with more than half of that sales were just 0.3% higher than 2011, with an estimated advance attributable to a 5.5% jump in pork prices during $9.2 billion from food sales. the month. Prices for almost all other major food categories, with the exceptions of eggs, dairy, soda and cooking oils, Even Restaurant Sales Growth Slowed In July dropped during the month. When compared to year earlier Marking the smallest percent increase over year earlier prices, beef and chicken remained well above 2011 levels, levels in 2012, sales at the nation’s eating and drinking up a significant 14.9% and 16.1%. Pasta was also up sharply, places increased just 5% in July. Even so, year to date sales by 10.6%. Offsetting these were lower prices for dairy (down through Aug. 1 were up 8.1% from 2011, far outpacing sales 9.3%), and fresh produce. at grocery stores or clubs and supercenters. Full service restaurant sales growth continues to outpace quick service Tepid Growth For Food Retailers Again In July sales. Through the first seven months of 2012, the Food Checkouts at the nation’s food and beverage stores rang up Institute estimates full service units posted an increase of on 2.3% more sales in July than the same month last year, nearly 10% compared to a 5.4% increase out limited service still under the retail food inflation rate, meaning there was outlets. It does appear that consumers celebrated Fourth no real increase in tonnage passing through stores. Through of July in a hearty manner this year, with sales at drinking the first seven months of 2012, these retailers saw sales in place during the month increasing an estimated 5.8% on the increase 3.5% -- barely keeping pace with the inflation. heels of a 13% jump in June - perhaps the result of strong Strong competition from alternative retailers has certainly Memorial Day traffic. made it more difficult for supermarket operators to pass 3 The Voice of the Nebraska Grocery Industry 2013 Calendar of Events Jan. 16 ............................................AWG Springfield Spring Show Jan. 23 ......................................... AWG Kansas City Spring Show Jan. 24 ...NGIA Legislative Dinner, Cornhusker Hotel Jan. 20-22 ......................2013 Midwinter Executive Conference Feb. 10-13: National Grocers Association Synergy Showcase Feb. 19-21 .........Nash Finch Spring Trade Show in Minneapolis Mar. 1-2 .............Affiliated Foods Midwest Trade Show, Omaha April 17 .................................. AWG Kansas City Summer Show April 17-18: ....................Washington Public Policy Conference April 24 .....................................AWG Springfield Summer Show April 30–May 2: ...................FMI’s Future Connect, Orlando, FL You’ll love how many May 28 .....NGIA Spring Golf Outing at Quarry Oaks great-tasting ways July ......................................NGIA Annual Conference ® July ............................ NGIA Sand Bagger Golf Outing Dorothy Lynch can Aug. 20-22 .............Nash Finch Fall Trade Show in Minneapolis come to the table. Aug. 21 .....................................AWG Kansas City Holiday Show Sept. 13-14 ........... AAffiliated Foods Midwest Fall Trade Show in Omaha Sept. 10-11 ................................ AWG Springfield Holiday Show Sept. ...............................................Tobacco & Candy Golf Outing 2014 Calendar of Events June 10 - 13, .................................... FMI 2014, McCormick Place See what’s new at (South Hall), Chicago, Illinois www.dorothylynch.com/recipes (If you would like to have your event listed on the calendar, please contact the NGIA office) 4 Tasty-Toppings/Dorothy Lynch: NE Grocery Ind. Asso. Ad For Approval 8/27/12 Color: B&W, no bleed SIZE: 1/4 page = 3.5” wide x 4” deep in the NE Grocery Asso Directory for 2012-13 Swanson Russell Job# T705-027324-2 July / August 2012 Rod Anderson Receives Plaque in Recognition of Service on the NGIA Board of Directors Rod Anderson, ConAgra Foods, served a three year term as a representative of the Associate segment of NGIA members during the Annual Conference.