Griffin Report January 2010 : A1
THE All That’s News in the Food Industry www.griffinreport.com Supermarket Report Big Y Makes Store Changes................................A2 J’OH To Purchase Mid Atlantic Broker ..................A7 Making HBC Your New Year’s Resolution..............A7 Kraft Sells Pizza Business To Nestle’ ..................A8 NOTHING PERSONAL Food Service Report Alex Ray Named To Food Industry Hall of Fame ..B1 Sourcing, Nutrition Top Menu Trends for 2010 ....B1 Famous N.Y. Restaurant Up For Auction ..............B1 R.I. Honors Its Stars Of The Industry ................B4-5 The C-Store Report of Food Marketing New Channels Report Florida Law Aims To Eliminate Old Fuel Tanks ......C1 7-Eleven Buys N.E. Pantry ..................................C1 Hess Express Has Top Manager In Kathy Carter ..C1 Cathy Barber Is First NECSA Board President ......C4 January 2010 Volume 44 No. 01 Kehe Foods Buy Tree of Life................................D1 CVS Outdated Products Draws Concern..............D1 Tips For Resonating With Older Consumers ........D1 A Healthy Happy You In 2010.............................D1 BY KEVIN GRIFFIN PUBLISHER We All Lost A Champion In Bill Grize The food world has lost a champion in the pass- ing of Bill Grize. He touched so many as the leader of Stop & Shop and Ahold USA and those who met him at many food-related events and functions. Almost five years ago in April, at a standing- room event at Lombardo’s in Randolph, Mass., more than 900 people, including Stop & Shop, Giant, Bruno, and Tops staffers as well as labor and retail leaders, suppliers of Ahold and friends of Bill Grize, came to honor him as he retired from Ahold USA and Stop & Shop. Lombardo’s was a sea of food-trade represen- tatives who came to celebrate 38 years that Mr. Grize worked for Stop & Shop and Ahold USA. Those who spoke, as well as a video, empha- sized Mr. Grize’s strength as a leader of all kinds of people, his attention to detail, his ability to solve problems and not to fear them, and his general kindness and generosity. Before coming to a store, he made it his business to know everyone’s name in that store. Danny Wegman, head of Wegmans of Rochester, N.Y., said in the video that Mr. Grize always put people ahead of himself.” Don Sussman of Stop & Shop also said that “only when you were up did he [Mr. Grize] beat you up. When you were down, he was there to help you.” Mr. Grize had a passion for the business and 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- ulate, and who set high standards, a man of high integrity, and whose motto was that the team is more important than the individuals. As an industry leader, Mr. Grize was a longtime supporter of the Massachusetts and Connecticut Food Associations, the Food Marketing Institute, the Joint Labor Management Committee in Wash- ington, D.C., the Coca-Cola Retailing Research Council, the Private Industry Council of Boston and INROADS of Central New England. This is a nation- al organization that matches high achieving col- lege students of color with business internship opportunities. A strong supporter of Stop & Shop’s communi- ty partnership programs, Mr. Grize was a trustee of the Dana Farber Cancer Institute. He was also a member of the Jimmy Fund’s Partnership Advisory Board at the Dana Farber Cancer Hospital in Boston and one of the fund’s most vocal advo- cates. Mr. Grize, in his closing remarks at the Lombar- do’s event, talked of the lessons learned from Mr. Tobin, and that Stop & Shop and Giant were blessed with great people. He credited Sidney Rabb, Avram Goldberg, Lew Schaeneman, and Mr. Tobin as his mentors and praised them for their leadership skills. At this event, a scholarship in Mr. Grize’s name was established by Stop & Shop, and he was given a gift of a Steuben Crystal hand-carved heart with the inscription, “For Bill Grize, whose heart is big enough for the entire company.” As we were going to press, we learned that In lieu of flowers, memorial donations may be made to “The Journey of Hope Campaign,” which is for the New Dana Farber , Brigham and Women’s, South Shore Hospital Cancer Center, 55 So, Wey- mouth, Mass. 02190. Condolences can be made to Mrs. William G. Grize II (Lynn), P.O. Box, 882, E. Dennis, Mass. 02461-0882. Bill was a longtime great friend to the Griffin- family, and a true believer in our efforts here at The Griffin Report. May God welcome him into The King- dom of Heaven and bless his soul- He will be truly missed. month with the announcement that Royal Ahold would acquire 25 stores from Ukrop’s Supermarkets. Giant-Carlisle operates more G than 150 stores in Pennsylvania, Virginia, Maryland and West Vir- ginia under the names of GIANT and MARTIN’S. Giant-Carlisle employs more than 26,000 full- and part-time associates. Ukrop’s employs approximate- ly 3,900 full- and part-time associ- ates in 25 stores and a corporate support center. Giant-Carlisle will hire Ukrop's store associates. The purchase price is approximately $140 million. The closing of the transaction is expected to take place in the first quarter of 2010. Ukrop’s is a family-owned busi- ness based in Richmond, Va. The Supermarket Co. and Ahold USA, Inc., passed away Jan. 5 after a brief illness. According to Stop & Shop officials, W Mr. Grize, who retired from Ahold in 2005, leaves behind a legacy of amazing dedication, firm commitment and gritty determination. Mr. Grize had recently been diag- nosed with Creutzfeldt-Jakob Disease, a rare degenerative fatal brain disorder whose cause is unknown and for which there is no known cure. Unfortunately, the disease progressed very rapidly and led to his untimely death at 63 years old. Faith Weiner, Stop & Shop senior director of public affairs, said Mr. Grize’s passing is a great loss to the Ahold USA retail family and the supermarket indus- try. His career spanned nearly four decades, and his innovative ideas and strong work ethic made him an inspira- tion to associates across the company. “Our deepest sympathies are with Bill’s beloved wife of 43 years, Emelyn, children, grandchildren and his entire extended family including the thousands of associates and colleagues whose lives he touched,” said Ms. Weiner. Mr. Grize grew up in Waterbury, Conn., and graduated from Croft High School, where he met his wife, Emelyn. He then earned a B.S. in economics from Southern Connecticut State Col- lege. Mr. Grize entered the food industry as a teenager, working for five years at a Connecticut beef company doing case- work and performing cutting duties. Then, in 1967, he began his storied career at Stop & Shop as a part-time clerk in the local Waterbury store. Over the years, Mr. Grize quickly rose in the ranks of Stop & Shop’s Connecticut Divi- sion. In 1990, he became senior vice president and general sales manager of GIANT/MARTIN’s To Acquire Ukrop’s Supermarkets Food Industry Mourns The Loss Of Bill Grize illiam J. (Bill) Grize II, for- mer president and chief exec- utive officer of the Stop & Shop the Stop & Shop Supermarket Company, and then in 1993 he was promoted to executive vice president of retailing. In 1994, Mr. Grize was named Stop & Shop’s chief operating officer. In 1996, he added president of Stop & Shop to that title. At the close of 1997, at the age of 51, Mr. Grize was named president and chief executive officer of Stop & Shop. Under his leadership, Stop & Shop’s sales grew 22 percent from $5.5 billion in 1997 to $6.7 billion in 1999, accom- panied by substantial growth in the com- pany’s operating profits. In 2000, Mr. Grize was appointed president and chief executive officer of Ahold U.S.A., Inc. Subsequently, in 2001 Mr. Grize was appointed to the Royal Ahold Corporate Executive Board. Ms. Weiner said that during his career, Mr. Grize was well known in the food industry as a person with extraor- dinary passion for people. He believed that his company’s man- agement had both a civic and business obligation to provide diversity in the stores and corporate offices in order to serve the needs of the customer and the community. In 2005, the Food Marketing Insti- tute (FMI) awarded Mr. Grize the pres- tigious Sydney R. Rabb Award in appre- ciation of "his exceptional service to the community, consumers and the indus- try." He served as a member of the Exec- (Continues on page A4) Senator Pleads To Slow Penn Traffic Sale not accept a liquidation bid for Penn Traffic that would shutter many stores and lead to possible significant job loss. Penn Traffic, which has filed for Chapter 11, is search- O iant-Carlisle, a division of Ahold USA, increased its presence in Virginia last transaction includes 25 stores, inventory, equipment, lease agree- ments and one new store location. Stores are located in the Greater Richmond and Williamsburg, Va., areas. John Rishton, chief executive officer of Ahold, said, “This acqui- sition is part of Ahold’s profitable growth strategy. Ukrop’s is a great company with a strong heritage in an attractive market. We believe that Giant-Carlisle and Ukrop’s will be a strong combination. “This acquisition is an excep- tional fit for two companies that share common values including a commitment to our associates, customers and communities,” said Rick Herring, division president of Giant-Carlisle. “It is our goal to build on the heritage of a great company and ensure the least amount of disruption to customers as part of the sale process. Cus- tomers should expect to find the same friendly store teams, excel- lent customer service and quality foods that they have always found at their local Ukrop’s.” The Giant-Carlisle Division operates 152 stores in the states of Pennsylvania, Virginia, Maryland and West Virginia under the names of GIANT and MARTIN’S, including nine stores in Virginia that operate as MARTIN’S. “We may be new to Richmond, but we’ve operated in Virginia since 1984,” continued Mr. Herring. “We’re excited about introducing ourselves to the com- munity.” "We believe that the GIANT/MARTIN’S combination of global strength and local focus will provide an even greater shopping experience for our customers, (Continues on page A4) ing for buyers for its 79 stores in New York and surround- ing states. Reports to Senator Schumer’s office indicate that that Penn Traffic was pushing for a decision to be made by Jan. 8—well ahead of the previously established court date for bids of Jan. 22. According to Senator Schumer, a decision that priori- tizes a liquidation bid would likely result in a large portion of the stores being liquidated. Senator Schumer urged the major players in the Penn Traffic negotiations to not accept any low-ball liquidation bids offered by this Friday, Jan. 8 and instead to prioritize bids that maximize the greatest (Continues on page A7) Celebrating RIFDA’s 100th Anniversary n Jan. 5, U.S. Senator Charles E. Schumer of New York sent a letter to the heads of GE Capital and Penn Traffic asking them to slow the process and (L-R) Lou Furcolo of Dave's Fresh Market, George Pelletier of Shaw's Supermarkets, Steve Arthurs, new RIFDA executive director, gathered at the Rhode Island Food Dealers 100th anniversary event and annual meet- ing held recently at the Hyatt Regency in Newport, R.I. See page A9 for more information.
