Associated Food Dealers PRSRT STD 18470 W. 10 Mile Rd. U.S. Postage Southfield, Ml 48075 PAID DETROIT, MI Change Service Requested PERMIT#36 The official publication of the Associated Food Dealers of Michigan July 2002 Working hard for our members. "Independents' Day" AFD has a busy legislative On July 4 , we celebrate our independence as a country. This month, in a play agenda • See page 3 on words, AFD salutes our "independent" supermarkets and convenience stores with a cover story that gives you ideas on how retailers can remain The cherry is royal at King Orchards independent and win market share. • See page 18 Retail marketing, one neighborhood at a time Meet Senator Shirley Johnson By Michele MacWilliams the puzzle. For success he manufacturing and brokerage and per-person expenditures, "Time and time again believes that the independent • See page 22 industries as a major factor in the report shows that retail pundits have brazenly retailer should focus the lack of support. "When a consumers are spending more Secure Check Cashing stated that the three most development strategy on broker can make one call for at their primary store and that offers hassle-free important factors in the creating a facility that a large order from a chain their overall satisfaction with program success of any retail facility identifies and meets the instead of 10 to independents, supermarkets remains high. • See page 20 are location, location, and requirements of a specific who will he call first?" Welch Consumers are also spending location. That statement was marketplace (i.e., the singular believes that more resources less on restaurant takeout and not true when it was first trade area of that one should be focused on the are expressing more interest Legislative Update uttered, it is not true today, individual retail outlet). independent markets. in preparing home-cooked and it will not be tomorrow,' A close relationship Participation in trade shows meals at least three times per states Jim Fisher, founder and between retailers and their and industry-sponsored week — a significant change CEO of 1MST Corp., a retail suppliers is also a key events is one way that from previous years. Death for location analysis firm that element of success. suppliers can remain in Consumers also express a permanent death serves the convenience store/ "I think that one major personal contact with the high level of confidence in petroleum, foodservice, concern of the independent independent retailer. "I know the safety of food purchased tax repeal supermarket and specialty retailer right now is the lack that there is a lot of business at supermarkets and Permanent repeal of the retail industries. of support from brokers (hat is being left on the convenience stores and they estate tax collapsed last He maintains that this old and manufacturers," says table," Welch adds. are showing an increased month, as a 54-to-44 vote in adage places too much Thorn Welch of Hollywood Faced with competition interest in irradiated food favor of repeal was six votes importance on "dirt strength," Super Markets. He sites from warehouse clubs and products. As with nutrition, short of the 60 needed for when it is only one piece of consolidation in the chains with greater buying most consumers feel that they approval. power, the independent are primarily responsible for Forty-one Democrats, one market must be particularly ensuring the safety of the Independent, and two savvy. Retailers must study food they consume and many Republicans opposed letting trends in the industry, then follow food safety practices the bill move forward, while use this information as it at home. 45 Republicans and nine relates to the customers in Shoppers seek new store Democrats supported repeal. each market area. features The vote came just days So, what are the trends? Trends 2002 finds that after the House of Concerned about the U.S. shopper satisfaction with Representatives passed a economy, American permanent repeal, and in the consumers continue to See Independents' Day face of President George W. incorporate economizing page 28 Bush's call to make the behaviors in their weekly repeal last beyond its Dec. grocery shopping, according 31,2010 expiration. to the Food Marketing Get ready for The GOP promised to use Institute (FMI) Report, the Holidays! the defeat as an issue in the Trends in the United States: The weather may be warm election campaign this fall. Consumer Attitudes & the Democrats defended their Supermarket. 2002. The and sunny, but the holidays position as being responsible report also shows that, along are just around the corner. at a time when expenses are with a strong desire for value, Mark your calendar now going up during a time of war consumers are seeking for the AFD/Beverage against terrorism, saying that healthier mealtime solutions Journal Holiday Show. and more variety from food it was a mistake to cut the September 25 & 26 at AFD's Annual Scholarship Golf Outing at Wolverine retailers. nation's revenue. Burton Manor in Livonia. Golf Course is scheduled for Wednesday, July 17, with a Despite a decrease in Two Democratic shotgun start at 9:30 a.m. If you haven't signed up yet, call spending averages for both See page 29 for details! alternatives also were Michele NOW! (248)557-9600. See details on page 9. the household grocery bill rejected. Visit our Web site at: www.afdom.org AFD Food & Beverage Report. July 2002 1 EXECUTIVE COMMITTEE Chairman's Message Terry Farida, Chairman Value Center Markets Vice Chair Membership Mug & Jug Liquor Stores Frad Dally, Vice Chair Community Relations AFD PAC means power for our members Medicine Chest Gary Davis, Vice Chair Legislation Tom Davis & Sons Dairy Co. Working to protect your bottom line Welch, Vice Chair Future Planning Hollywood Super Markets Chris Zebari, Treasurer New Hudson Food Market Gas stations selling non-profit health insurance providers. Al Chittaro, Secretary beer & wine With some work, reform will make Faygo Beverages, Inc. BCBSM insurance more affordable Another issue that continues to be EMERITUS DIRECTORS for small businesses. raised in our legislature is a proposal Sam Dallo • AFD is monitoring a potential In N'Out Foods to allow gas stations to sell beer and increase in cigarette taxes. Our Bill Viviano wine. AFD members feel that House of Prime legislature is looking at options to allowing gas stations this opportunity Mark Karmo increase this tax by 50 cents per pack Golden Valley Food Center would critically dilute current grocery to aid the budget deficit. Cigarette Nabby Yono and convenience stores sales, lead to Orchard Food Center taxes now stand at 75 cents per pack. Frank Arcori increased sales to minors and be a Retailers will surely lose revenue to V.O.S. Buying Group burden on our law enforcement bordering states and to smugglers if RETAIL DIRECTORS agencies. We have been lobbying taxes are increased as expected. Phyllis DeSmet against this for many years now and • AFD has been fighting a Spartan Stores, Inc. Region 3 so far our efforts have paid off. By Terry Farida, AFD Chairman legislative amendment that would Jim Garmo However, the petroleum industry Shopper's Valley Market, Region 2 prohibit cigarette manufacturers from continues to push this matter and it James Hooks Summer is traditionally a time offering retailers "shelf rebates," Metro Foodland will take assistance from you to keep when legislative issues slow down. which, if passed, would further Raad Kathawa this bill at bay. Ryan's Foods, Region 1 The House and Senate recess for decrease the already tight margin on Nick Klzy summer vacation and little is cigarettes. Warrendale Food Center Alaa Nalml accomplished in their absence. Well, Sunday lottery drawings • AFD supports a comprehensive Thrifty Scot Supermarket that certainly isn't the case this year. The Department of Treasury recycling program, which will move Vic Ventimiglia, Jr. AFD has been working around the estimates that Michigan's two-year Vic's World Class Market toward removing bottles and cans Brian Yaldoo clock on important issues that directly budget will have shortfalls exceeding from stores. affect our members. Woodward Long Lake Shell $700 million. In an effort to raise • Finally, House Bill 6170, which Jerry Yono revenue, the Bureau of State Lottery Imperial Sunoco increases fines for minors attempting has proposed Sunday Lottery SUPPLIER DIRECTORS Restaurants and to purchase alcohol, is a bill that AFD drawings. AFD is engaged in major Brian Belobradic supports. This bill removes some of packaged liquor negotiations on your behalf regarding Anheuser-Busch. Inc. The first, which has taken a great the burden of proof from retailers & Frank Bodi this issue. Sunday Lottery drawings places it on minors. Pernod Ricard USA deal of time and effort, is Senate Bill should be tied to an increase in • As you can see, AFD has a very Earl Ishbia 1312, which if passed would allow commissions. Considering the budget Sherwood Food Distributors on-premise licenses (restaurants, bars busy legislative agenda and it is all Mike Rosch crisis, however, Sunday Lotto & hotels) to sell liquor for off- aimed at saving or making money for General Wine & Liquor Co. drawings may become a reality soon. our members! However, we can't do Clark Walker premise consumption. In his first Coca-Cola, Region 6 week on the job, AFD President Mike it alone. It takes a strong and Tom Waller Other important issues powerful Political Action Committee CROSSMARK Sales Agency, Region 5 Sarafa, with Joe Sarafa's assistance, was able to derail this issue - at least AFD is also working on additional to take on this aggressive agenda. I Amir Al-Naimi temporarily. Obviously AFD legislative issues that can affect your am asking for your help on this.