Associated Food Dealers BULK RATE 18470 W. 10 Mile Rd. U.S. Postage Southfield, Ml 48075 ASSOCIATED FOOD DEALERS OF MICHIGAN PAID Permit No. 36 Address Correction Requested Detroit, Ml and its affiliate: _____ PACKAGE LIQUOR DEALERS ASSOCIATION FOOD & BEVERAGE REPORT VO L 9. NO. 4 An official publication of the Associated Food Dealers of Michigan and its affiliate, Package Liquor Dealers Association Inside m Costco comes to Foodland, Term limits - they change the way government SUPERVALU split works page 3 Detroit by Michele MacWilliams Jaeggi Hillsdale Country Five locations set for April opening Independent grocers across Michigan are reeling from Cheese makes fresh the news that their supplier, Foodland, will no longer cheese daily • page 9 service them. In a surprise announcement, Foodland gave word to Meet AFD’s new officers their employees and customers in March, leaving little • page 16 time for planning. Foodland was owned jointly by Kroger and SUPERVALU. The two companies have Rep. Callahan supports parted ways, and SUPERVALU will go after Foodland's small business • page 35 independent retail business on its own. According to sources, the Foodland Livonia facility will continue to AFD on the Scene service Kroger and Kessel as a distribution center only, page39 by Michele MacWilliams not as a warehouse. SUPERVALU will not use the Costco has chosen to take a big step into uncharted facility. Legislative Update territory in the Midwest by opening five new stores in the Grocers who used Foodland as their wholesaler are Detroit area, all in one fell swoop. It is an unprecedented rushing to form buying groups, in hopes of securing step for the company, which operates 286 warehouse- competitive prices from whichever wholesaler they Court grants style stores in the U.S., Canada, Mexico,the UK, Korea choose. and Taiwan. Most of the U.S. Costco warehouses stretch Independent grocers are now looking at other stay request: along the East and West coasts. Two years ago Costco wholesale companies. Those mentioned as contenders to Blocks OSHA entered Atlanta and is now penetrating the Midwest with take a good portion of Foodland’s business are Roundy' s, its Detroit openings. CCP Program SUPERVALU, Seaway, Flemings and Spartan. Midwest See Costco, page 37 Wholesale also stands to gain market share. The U.S. Court of Appeals for the D.C. D ea r Retailers, Circuit has granted a I am the owner of Medicine Chest Market and I have petition requesting the volunteered to co-chair the Associated Food Dealers trade court to stay OSHA' s show committee. I have been a trade show attendee for at least Cooperative Compliance 11 years. I attend the trade show because it’s a selling show Program (CCP) pending with great price discounts and to keep myself updated on new judicial review of the product introductions. As a business owner and co-chairman of program. Targeted this committee, I am very serious about making this trade show employers were given the lucrative fo r retailers. choice of committing to a Together with the committee and my co-chairman Rodney mandated OSHA safety George, president o f Melody Farms, we have devised an program or facing stepped- incentive program for retailer purchases. Hudson’s will be on hand raffling prizes fo r retailers that purchase product. up inspection. The Winners will have their choice o f tools, humidor, CD walkman, petitioner told the court camera, luggage bag and tote, cordless phone, portable TV or a that the program was golf bag from Dayton Hudson's. implemented in violation The goal o f our committee is to make the AFD trade show a of procedural requirements money saving venture for retailers. We feel very strongly that and that a stay was we have accomplished this goal. It is definitely worth it for you necessary to protect those to attend the show. There will be great show specials on items targeted from irreparable that you carry in your stores every day. We look forward to harm seeing you on Tuesday, April 21 from 5 pm - 10 pm and/or on The order is a Wednesday, April 22 from 1 pm - 8 pm at Burton Manor in nationwide stay of the Livonia. OSHA "Instruction" Sincerely, F red D ally Look for Trade Show Specials, listed inside, beginning see OSHA. page 40 Owner, Medicine Chest on page 42. The Trade Show floor plan is on page 52. Now you can talk free. EJust look inside specially marked packages of Diet Pepsi and Caffeine Free Diet Pepsi for your free MCI PrePaid Calling Card. This is Diet!™ AFD FOOD & BEVERAGE REPORT, APRIL 1998 Pres ident’s Message Bill Viviano, Chairman House of Prime Fred Dally, Vice Chairman Future Planning Medicine Chest Sam Dallo, Vice Chairman Legislation Term limits - A grass In ‘N' Out Foods, Region 4 Terry Farida, Vice Chairman Membership Value Center Markets Gary Davis, Treasurer Tom Davis & Sons Dairy Co. roots strategy Ronnie Jamil, Secretary Mug & Jug Liquor Store EMERITUS DIRECTORS from the Political Action AFD to be ready to move our Mark Karmo Royal Food Center Committee and another from our legislative agenda forward when Nabby Yono Board of Directors. the new freshmen legislators arrive XTRA Foods, Orchard Food Center Frank Arcori Term limits have prompted our on January 2, 1999. V.O.S. Buying Group Political Action Committee to take Term limits has also prompted Amir Al-Naimi Joy-Thrifty Scot a more direct role in getting the AFD Board into discussions Sam Yono candidates of both parties that are about becoming more directly Palace Plaza by Joseph D. Sarafa, very understanding and supportive involved in both party s political RETAIL DIRECTORS AFD President of our legislative goals, elected to structures. A more direct Jim Garmo Over the years the Associated the Michigan House and Senate. involvement can be accomplished Galaxy Foods, Region 2 Richard George Food Dealers of Michigan Board of We will continue to work with by AFD members running for Wine Barrel Plus Directors has demonstrated great these new legislators after they precinct delegate in the August 4, Raad Kathawa Ryan's Foods, Region 1 wisdom in determining how to stay take office. To do this, we will 1998 primary election. It’s very Alaa Naimi ahead of the political curve in implemement a KEY CONTACT simple to do. Thrifty Scot Supermarket Alan Stotsky Lansing for its membership. This STRATEGY involving the To become a candidate for Concord Drugs, Region 6 has been accomplished because you recruitment of one or two AFD precinct delegate either as a Thomas Welch and our directors have always Hollywood Super Markets members in each legislative Republican or Democrat in the Brian Yaldoo provided the necessary human and district to become our key contact precinct where you live, all you Woodward Long Lake Shell financial resources to move our Jerry Yono person(s). Each will be trained in need to do is file an AFFIDAVIT Cheers Party Store legislative agenda forward. developing a relationship with OF IDENTITY with the clerk of SUPPLIER DIRECTORS Now the Association is faced their targeted legislator to achieve the county, city or township in with the implementation of term Al Chittaro the goals of our association. which you are registered to vote. Faygo Corp. limits, which take effect with this The Political Action Committee All three have affidavits on file. Denny Otto election cycle. There will be over would provide training seminars, Spartan Stores, Region 3 Fill it out, have it notarized, tum it Ron Paradoski 60 new faces out of 110 members in support materials, specific in, and you’re on the 1998 August Strohs/Mooney Ice Cream the House of Representatives and Mike Rosch assignments, time frames, ballot. General Wine & Liquor Co. many new faces in the Senate after response system and develop the If elected you become part of Cal Stein the General Election in 1998. necessary data base information. the official delegation to the Sales Mark, Region 5 Barbara Weiss-Street Two strategies are emerging, one This effort in 1998 will position county convention that selects The Paddington Corporation delegates to the state convention Chris Zebari Pepsi-Cola Company (you could be one). At state conventions, candidates are AFD STAFF &, CONSULTANTS The Grocery Zone By David Coverly selected for Lt. Governor, Joseph D. Sarafa President and Publisher Secretary of State, Attorney General and all state board races. Judy Shaba S ervices Issues developed at county Daniel Reeves conventions are also presented at Deputy Director Cheryl Twigg state conventions. In presidential Office Manager election years, state delegates Elizabeth Arbus Executive Assistant select delegates to the national Sylvia Youhana convention. Both political parties Receptionist Danielle MacDonald at the county and state offices have Trade Show complete precinct delegate Sabah Brikho Membership Sales information booklets. Harley Davis Over the decades, as AFD has C oupons become politically mature, it Ruel Williams Community Relations makes a lot of sense to take the Ray Amyot next step of formal member Advertising Tom Amyot involvement in the political party Special Events and Advertising structure of both major parties. Karoub Associates Legislative Consultant If you currently have a Gadaleto & Ramsby relationship with an elected state Health Care James Bellanca Jr. official, or if you would like to run Bellanca, Beattie & DeLisle Legal Counsel as a precinct delegate, or would be Jerry Urchek willing to become part of AFD's Michele MacWilliams grassroots political activities, Metro Media Associates, Inc. please contact Dan Reeves at Public Relations, AFD Food & Beverage Report Editor AFD, (248) 557-9600. AFD FOOD & BEVERAGE REPORT. APRIL. 1998 . .3 Guest Editorial Calendar April 21-22 Racing into Profits Behind the consolidation AFD Annual Trade Show Burton Manor, Livonia (248)557-9600 May 3-6 trend: Implications for The 1998 FMI Show Supermarket Industry Convention & Educational Exposition McCormick Place, Chicago, III.