Griffin Report August 2009 : A1
THE All That’s News in the Food Industry www.griffinreport.com Supermarket Report MFA Backs Item Pricing Reform..........................A2 Acme, Union Agree On New Contract ..................A2 SUPERVALU Sells Albertsons Stores ..................A4 A&P Announces New Investment ........................A6 NOTHING PERSONAL Food Service Report Cautious Hope For Lodging Rebound .................B1 Menu Labeling Impact Could Widen ..............…..B1 MRA Has A New Numero Uno…..........................B1 BYO Movement Gains Momentum......................B6 The C-Store Report of Food Marketing New Channels Report Candy Proves It is Recession Proof ....................C1 Honey Farms Celebrates 40 Years ......................C1 Herndon Oil Sells 38 Stores To The Pantry ..........C1 7-Eleven Launches Campaign Against Credit Card Fees..........................................................C2 August 2009 Volume 43 No. 08 Delhaize Invests Heavily In LEED Certification ....D1 C&S Announces Steps To Minimize Carbon Footprint ..........................................................D1 McDonalds Charges Electric Cars in Cary, N.C. Spot ..........................................................D1 Preview of Back To School Spending ..................D9 Augusta, ME. Hannaford Achieves Platinum Status BY KEVIN GRIFFIN PUBLISHER Sources Say Ukrops Is Exploring Selling Option Supermarket industry sources have said that Ukrops Super Markets, a well-thought-of Virginia supermarket company, has sent out a company prospectus report to potential buyers seeking inter- est in a possible sale. Sources also confirmed that Harris Teeter is at the forefront of the interest, with Food Lion, Ahold USA, and SUPERVALU also men- tioned as potential bidders. While not completely denying the report, Robert Ukrop, company chairman and president, wrote a let- ter to employees recently referring to reports as spec- ulation based on rumors, anonymous blogs and industry chatter. He added, “Anything I say at this point would add fuel to the fire.” Ukrops, which has 28 stores and has been sell- ing groceries in the Central Virginia market since 1937, is not open on Sundays and does not sell beer or wine at its stores. Its chief competitor is Food Lion. Ukrops is known for its perishable sales and has a central kitchen and bakery. The company employs, 5,600 associates. Atlantic Food Brokerage Merges With JO’H The Johnson, O’Hare Co. has announced the merg- er of the Atlantic Food Brokerage, Inc. clients into the JO’H Perishables Division. Ed Vetstein, Bill Forte and Jeff Vetstein will join JOH Perishables and bring vet- eran meat/deli expertise to the JO’H Perishables team, led by Chris Darmody. John Saidnawey, chief operating officer of John- son, O’Hare, said, “Bringing these two teams togeth- er creates a complete solution to providing expertise in meat, deli, seafood and bakery. We are excited to have Ed, Bill and Jeff join the JO’H family and look for- ward to delivering excellence in service to our clients and customers. The Atlantic Foods team has an impeccable reputation in the marketplace and is a welcomed addition to JO’H.” Ed Vetstein, president of Atlantic Foods, said, “Join- ing forces with JO’H gives Bill, Jeff and me the oppor- tunity to bring over a century of perishable selling experience to an already well-established powerhouse in the broker community. We look forward to a bright future for our clients and for our customers.” Johnson, O’Hare, a JO’H Atlantic Partner, is a North- east-based food broker serving New England/Albany. The JO’H Atlantic Partners offer full-service coverage in Upstate N.Y., Metro N.Y./N.J., Eastern and Central Pennsylvania and the Baltimore/Washington/Rich- mond marketplaces. Upcoming Events You Show Know About The Frozen and Refrigerated Assn. of the North- east (FRANE) will honor Val Vivenzio of Big Y Foods at its annual convention scheduled for Sept. 24–Sept. 27 at the Newport Hyatt Regency Hotel and Spa locat- ed on Goat Island in Newport, R.I. Donna Maglio, FRANE president, said, “Val has been an inspiration to us all and has set a precedent for unselfish dedi- cation and support for this organization. Without his leadership and vision, this organization could not have enjoyed the success and growth that we have had over the past years.” In other upcoming events, the Impe- rial Distributors United Way seventh annual Charity Golf Outing will be Thursday, Sept. 17 at the Cyprian Keyes Golf Club in Boylston, Mass., beginning at 8:30 a.m. The New England Food Foundation golf tourna- ment is Monday, Sept. 21 beginning at 10:30 a.m. at Pinehills Golf Course in Plymouth, Mass…. A little fur- ther down the line, the Mass. Food Assn. has announced its annual meeting along with the pres- entation of the MFA Hall of Fame awards will be sched- uled for Tuesday, Nov. 3 beginning at 3:30 p.m. in Lom- bardo’s in Randolph, Mass. The Mass. Best Bagger competition will also be held prior to the events at 2:00 p.m. Retiring Larry Wahlstrom retire after 38 years in the drug and food retail- ing industry. Mike Witynski, 46, group vice president, Our Own Brands for SUPERVALU, will replace Mr. Wahlstrom as president. “Having known Larry for more than 10 S years, I can attest to his impressive career and many contributions to our company’s ongoing (Continues on page A4) New Shaw’s President Mike Witynski Shaw’s New President To Replace HAW’S announced in late July that Larry Wahlstrom, 57, president of Shaw’s Osco and Star Market, has decided to NEWFDA Summer Sunshine mental store certification known as the Platinum LEED (Leadership in Energy and Environmental Design). This award was T he United States Green Building Council awarded Hannaford Super- markets with the highest environ- presented on July 23 with the opening of the Augusta, Me., store. Out of approximately 85,000 super- markets in the U.S., Hannaford is the first supermarket in the country to achieve Platinum LEED certification, the highest standard of the U.S. Green Building Coun- cil (USGBC). "We're thrilled to receive this certifi- cation and serve as a role model for other businesses in the retail community. We've been working to improve the environmen- tal performance of our stores for many years," said Ronald Hodge, chief execu- tive officer and president of Hannaford. "Construction of this store will allow us to identify additional measures that we can (Continues on page A4) State of Franchising In Troubled Economy: Creative Strategies Key To Breaking Funding Freeze BY NICOLE JOY HALES as ever to start their new businesses but are unable to do so because they can- not secure the level of funding needed that was available just two or three years ago. T That said, strong applicants and creative strategies are breaking through the freeze on loans, while government initiatives and changing perceptions in the economic climate have been aug- menting an overall thaw. Reginald Heard, president and CEO of Bankers One Capital of Danbury, Conn., describes a mixed scene when it comes to the ability and probability of banks offering loans for promising franchisees. “Banks are well capital- ized, so they do have the balance sheet capacity to lend,” he described. “Now, oday’s economy has been espe- cially frustrating for would-be franchisees, who are as prepared it’s not so much the capacity to lend but the psychology of the economy” that is preventing loans, as well as a major drop off in demand from the entrepre- neur side. Mr. Heard explained: “Home equity, retirement, and sav- ings were usually used as an equity injection” for a start-up business or franchise. “Now, people are much less willing to or capable of using these sources,” said Mr. Heard. Additionally, Mr. Heard said that large national SBA lenders are feeling more pressure now that a lot of large lenders are out of the market as a result of the secondary market freezing. And because of the current eco- nomic climate, even though the capital is now more available, “the criteria have gotten more stringent over the past one-and-a-half to two years” for both (Continues on page A7) chising has helped their companies and to offer comments on the state of franchising today. Offering their com- ments are Darlene Guenette, manag- ing director of Honey Dew Associates; Ted Giles, president and chief execu- tive officer of Chester’s; and Lynette McKee, vice president of franchising for Dunkin’ Brands. Also see Sections B, C, & D in this issue for other fran- chising stories. T Darlene Guenette Q. How has franchising bene- fited your company? A. As we are 100 percent franchised with the exception of our one corporate training center, it has benefited us extremely well. The strength and ideas we receive from our franchisees who Three Industry Leaders Comment On Outlook BY MIKE BERGER he Griffin Report asked three industry representatives to com- ment on how the concept of fran- are out working with the customers every day is invaluable. Franchising has allowed Honey Dew Donuts to grow to over 150 shops! Q. In your opinion, given the challenging economy, how has franchising been affected as a whole, and what is your outlook for the future? A. Honey Dew has been in business for over 36 years; we have seen many tough times over the years and have always come through strong. We are set- ting some ambitious goals for our com- pany to open more shops and bring in many new franchisees over the next year. Our outlook for the future is very bright, we have our strategic plans in place, and we look forward to another great year. Ted Giles Q. How has franchising bene- fited your company? (Continues on page A7) Enjoying the mid-afternoon concluding dinner at the annual Northeast Wholesale Food Distributors Assn. Annual Golf Outing were (l to r): Peter Bouchard of King Arthur Flour, Michelle Billeri of Acosta, Patrick Kennedy of C&S Wholesale Grocers, and Sam Sweet, also of King Arthur Flour. For more photos, turn to Section B. Let Health,Wellness And Imperial PowerYour Growth. www.imperialdistributors.com
