August 2018 Vol 72, Number 8
Also Inside Who are the 2018 Al Kessel Award Winners? page 3 Possible Labeling Changes for Some Items, page 6 Congrats to Four 2018 Felice Scholarship Winners, page 9 Industry News, page 10 Don’t Miss Grocers Fall Event, page 12
Focus on Supplies, Equipment & Technology Survey Reveals Preferences for Grocery Store of the Future Hint: Consumers are expecting grocers to use state-of-the-art technology to improve their shopping experience.
Meijer to Transition All Stores to LED Lighting Look for all LEDs by 2021.
SpartanNash Expands Click-and-Collect Program Company expands its technology-driven initiatives.
Kroger Launches Ship
Rolls out new direct-to-customer eCommerce platform; also launches app to help shoppers make healthier purchases. SEE PAGE 5.
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president ’s message
Congratulations 2018 Al Kessel Award Winners! James P. Hallan Publisher Lisa J. Reibsome Editor
Advertising Index Campbell Group ............................................. 10 Consumers Energy ........................................... 2 Michigan Lottery ........................................... 11 SpartanNash ..................................................... 8 TOMRA ........................................................... 4
Effective January 1, 2018, Michigan Grocers Association is officially a division of the Michigan Retailers Association
Michigan Grocers Division Board of Directors Rich Beishuizen, Country Fresh Craig Diepenhorst, H.T. Hackney Dave Duthler, AMRA Energy Jim Forsberg, Arctic Glacier Premium Ice Jim Gohsman, SpartanNash John Leppink, Leppink’s Food Centers Ken McClure, Kroger Company of Michigan Bryan Neiman, Neiman’s Family Market DJ Oleson, Oleson’s Food Stores Joe Risdon, Prairie Farms Dairy Don Symonds, Lipari Foods Thom Welch, Hollywood Markets Jim Zyrowski, Ben’s Supercenters Michigan Food News is completely recyclable. Printed on recycled paper with soyoil-based ink. Publisher does not assume responsibility for statements made by advertisers in business competition. MICHIGAN FOOD NEWS © 2018 Michigan Retailers Services, Inc. All rights reserved.
Contact Information Lisa J. Reibsome, communications director 517.449.2256 MGAReibsome@comcast.net Michigan Food News advertising Michigan Food News all content, layout, and printing Grocers Division public relations Grocers Division Michigan Retailers Association 603 South Washington Avenue, Lansing MI 48933 517.372.5656 or 800.366.3699 www.Retailers.com
We are pleased to announce that Hollywood Markets and Aunt Millie’s Bakeries are the 2018 Al Kessel Outstanding Achievement Award winners! Launched in 2013, the award memorializes former Michigan Grocers Association Director Albert “Al” Kessel, Jr., who founded the Flint-based Kessel Food Market chain. To reflect his generous spirit, one Outstanding Retailer and one Outstanding Business Partner receive the award each year. 2018 Outstanding Retailer: Hollywood Markets For the “honesty and integrity of the organization and its outstanding customer service,” Hollywood Markets and its president, Thom Welch, were nominated by Bruce Fagerman, with SpartanNash. Thom’s grandfather, John Welch, Sr., opened the grocery chain’s first store in 1924 in Detroit after returning from World War I. Tragically, he was killed during a robbery at the store in the early 1930s. Thom’s grandmother, Leota, carried on – running the store and raising the couple’s four boys. Oldest son, Bob, died while serving in World War II. In 1947, second oldest son Jay, who was Thom’s father, opened Jay’s Market down the road from the family store. In 1950, Leota’s second husband, C.A. Ross, and Jay opened the first Hollywood Supermarket in Royal Oak. Family legend has it that Leota chose the name by closing her eyes, opening a phone book, and putting her finger on the name Hollywood. Early advertisements proclaimed: “Hollywood Supermarket – Where the customer is always the star!” Today, Hollywood Markets’ focus on old-fashioned customer service is depicted by a friendly Mr. Hollywood character, the face of the business. The Welches have a long-history of blending family and business. After Jay’s brothers, Rich and Bill, completed their military service, they joined the business and started families. Of that second generation, only Bill remains to mentor the six third-generation Welches who run Hollywood Markets: Thom, Bill Jr., Rick, Kim, Dave, and Steve. Thom’s older brother, Bob, served as company president before he passed away in 2013. In addition five fourth-generation family members are fully involved in the stores. Employing approximately 500 people, Hollywood Markets serves Southeast Michigan with five locations in Bloomfield Hills, Rochester, Troy, Madison Heights, and Royal Oak. In addition to great customer service, the stores are known for their fresh produce and impressive meat departments. In 2015, Hollywood Markets received Progressive Grocer’s Outstanding Independent Award for its exceptional meat departments. The Welch family stands by what Grandma Welch said in her 1930 advertising flyer: “We Aim to Please!” In addition, they give back by working closely with the food rescue organization Forgotten Harvest, winning the highest honor – the Harvey Award – for their hunger relief efforts. The family also contributes by serving on many boards, hosting Hollywood Markets’ Apples for Students program, and supporting the Salvation Amy, American Cancer Society, Arthritis Foundation, and other organizations. Thom served on the Michigan Grocers Association (MGA) Board of Directors from 2013 until MGA joined MRA in 2018. Today he serves on the Grocers Division Advisory Board. continued on page 4
it ’s the law
Department of Labor Rescinds Persuader Rule
The Department of Labor (DOL) announced a full repeal of the persuader rule, which was enacted by the Obama Administration in 2016 to dissuade employers from interacting with employees who were participating in a unionization drive. The persuader rule required employers to report “indirect persuader activities” — for example, a consultant or lawyer recommending what supervisors should say to employees involved in unionization efforts. This was an expansion of what had been required under the Labor-Management Reporting and Disclosure Act (LMRDA). LMRDA reporting requirements generally only required employers to report direct interactions; for example, if a lawyer or consultant spoke directly with employees in an attempt to affect their support during a union organizing campaign. Now that DOL has rescinded the persuader rule, employers can go back to following the LMRDA reporting requirements. Therefore, if a lawyer or consultant gives advice to an employer about how to deal with employees regarding unionization drives, that no longer triggers reporting obligations.
Health Plan Summary Annual Reports Due Sept. 30
Health plans with 100 or more plan participants at the beginning of a plan year are generally required to furnish a Summary Annual Report (SAR) to each health plan participant within 9 months after the end of a plan year. As a result, the deadline for most calendar year plans to satisfy the SAR requirement for plan year 2017 is September 30, 2018. A SAR must provide at least the name of the insurer, total premiums paid, value of plan assets at the beginning and end of the plan year, and amount of plan expenses. August 2018 Michigan Food News 3
Congratulations 2018 Al Kessel Award Winners, continued from page 3 2018 Outstanding Business Partner: Aunt Millie’s Bakeries The family-owned company has been in business since 1901 when John “J.B.” Franke founded the Wayne Biscuit Company in Fort Wayne, Indiana, first producing Perfection Wafers, and later, breads, cakes, and cookies. The company’s goal was “perfection” and was soon renamed Perfection Biscuit Company. In 1980, John F. Popp, grandson of J.B. Franke, was named company president. After years of innovation and growth, a new bakery was built in Coldwater, Michigan, in 1990, and the company name was tweaked to Perfection Bakeries. In 1991, the company developed a flagship brand to represent their passion for baking and introduced a spokeswoman to represent a new line of authentic, home-style breads – Aunt Millie. Customers identified her as caring and always baking something wonderful. Aunt Millie became so popular that, in 2005, the company was renamed Aunt Millie’s Bakeries. Today, Aunt Millie’s remains committed to baking the highest quality – and now healthiest – bread possible, with six bakeries in Michigan, Indiana, and Ohio and products distributed nationally. For being “an all-around great company,” Aunt Millie’s was nominated by DJ Oleson on behalf of Oleson’s Food Stores. “Everyone at Aunt Millie’s goes above and beyond,” says DJ. “They do a fantastic job for us. This spring we hosted the annual Northwestern Michigan College barbecue, and Aunt Millie’s donated and delivered the buns. While serving close to 6,000 people, we ran low on buns. The Aunt Millie’s rep offered to go get more on a Sunday! That’s just one example of how the company always looks out for its customers.” With approximately 1,600 employees, Aunt Millie’s gives back in many ways. Recent examples include donating 7,000 buns for “Brats for a Cure!” to raise money for the Susan G. Komen Foundation. They also donated 2,500 loaves of bread to “Bread Lift,” an event to benefit the Michigan March of Dimes. In addition, Aunt Millie’s created the School Spirit Program to help schools earn money when people buy bread. Both Hollywood Markets and Aunt Millie’s have made significant contributions to Michigan’s grocery industry. They have earned the respect and admiration of colleagues and customers throughout the state and beyond. These awards are well-deserved recognition. They will be presented during the opening night of the Food Retailers The 2018 Outstanding Retailer is Hollywood Markets and its president, Thom Welch, (top Summit, September 23, at Crystal Mountain Resort. The summit left). Hollywood Markets’ focus on old-fashioned customer service is depicted by a friendly continues a 120-year tradition of bringing retailers and suppliers to- Mr. Hollywood character, the face of the business (bottom left.) Aunt Millie’s Bakeries is gether to benefit Michigan and the retail food industry. See the back the 2018 Outstanding Business Partner. Seated is President John Popp, flanked by Vice President of Marketing Bohn Popp, and Executive Vice President Chris Popp. cover and retailers.com for more information.
Focus on Supplies, Equipment, Technology Survey Reveals Shoppers’ Preferences for Grocery Store of the Future
A 2018 study surveyed 1,100 adults across the U.S. to understand the current retail landscape and the services shoppers would like grocery stores to offer in the future. Overall, it revealed that shoppers are expecting even more convenience as well as state-ofthe-art checkout technology from brick-and-mortar grocers. “As eCommerce innovation continues to disrupt brick-andmortar retail in response to consumers’ desire for a more convenient and personalized shopping experience, traditional retailers are adapting to stay relevant,” says Phononic CEO Tony Atti, the man behind the study. Phononic makes solid state cooling technology. “By embracing new technology, retailers will improve consumers’ shopping experiences, and ultimately survive – and thrive – in this increasingly competitive landscape,” he adds. Key finds from the study include the following: Intelligent Technology 50% of shoppers say that grocery stores haven’t yet figured out how to use technology as well as other retailers have. More than 75% would be likely to use smart technology in a refrigerated unit to find recipes or the right food/wine pairings. Convenience Most shoppers (89%) want to shop in a grocery store that understands how to make buying groceries an easier and/or more efficient experience. 92% say it’s important that the layout of the store makes it easy to find things. 64% say they would be more likely to buy products if they were shown grouped together, such as chips and dip or cheese and crackers. 77% agree that, with stand-alone freezers, they’d prefer them to be more at their height instead of reaching down into them.
Meijer to Transition All Stores to LED Lighting
As part of its ongoing effort to increase its sustainability initiatives, Association Member Meijer plans to transition the interior lighting of its retail locations to all LED by 2021. The transition will affect all Meijer stores across the retailer’s six-state footprint. Meijer expects the change will reduce its lighting electrical use by as much as 50% annually. Meijer plans to transition all in-store interior lighting, including ceiling and spotlight illumination. In general, LED lights are 70% more efficient, improve lighting quality, and have a lifespan more than twice that of traditional lighting. The four-year project launched in June with the company’s 100-plus Michigan stores. In 2013, Meijer introduced its first all-LED store in Ohio. The retailer will phase in the changes so stores can remain open during the installation process.
SpartanNash Expands its Fast Lane Click-and-Collect Program
Association Member SpartanNash’s Fast Lane program, which is its click-and-collect service, is now available at the VG’s Grocery store in Caro and the D&W Fresh Market in Kalamazoo. The stores join Family Fare Supermarkets, Forest Hills Foods, D&W Fresh Market, and other VG’s stores throughout Michigan. Fast Lane orders are shopped by personal shoppers – who are also SpartanNash associates – and who focus on selecting fresh, quality items from each aisle of the store. Store guests can also include notes for Fast Lane shoppers to follow, allowing them to request specific items, such as green bananas and thick-sliced deli ham. The Fast Lane program was first launched at the Family Fare Supermarket in Grandville in July 2017 and has since continued to expand its offerings and convenience for customers. In December, at-home delivery was launched and currently serves Grand Rapids customers in 24 zip codes. In February 2018, SpartanNash added the ability to clip digital coupons instantly on shopthefastlane.com, giving customers additional ways to maximize their savings by alerting them to coupons they can redeem the instant they add eligible items to their online cart.
Kroger Ship Launches as Direct-to-Customer eCommerce Platform
Association Member The Kroger Co. brings a new direct-to-customer eCommerce platform, Kroger Ship, to four markets: Cincinnati, Houston, Louisville, and Nashville. The retailer anticipates quickly rolling out the ship service to additional markets over the next few months. During the first phase of Kroger Ship, customers can shop from a curated selection of 4,500 Our Brands products, which are not available anywhere else online, and more than 50,000 center-aisle groceries and household essentials that matter the most, influenced by data and insights. The service offers competitive eCommerce pricing and fast and free doorstep delivery by a package carrier on orders over $35, otherwise shipping is $4.99 per order.
More Checkout Options 68% say if grocery stores had new products at checkout, they would be more likely to try them. 59% would buy more at the checkout line if there were healthier options. 46% say grocery stores should have more frozen and/or refrigerated options at checkout. continued on page 7
Kroger Also Launches App to Help Shoppers Make Healthier Purchases The app, called OptUP, uses innovative technology to combine both nutrition and data science to help customers make more informed, healthier purchase decisions. “Kroger’s new OptUP app is transformational for the food retail industry,” said Colleen Lindholz, Kroger’s president of pharmacy. “The app puts nutritional information at your fingertips and makes finding and buying better-for-you products easier and simpler.” Key features of the OptUP app include: • “Scoring” groceries using nationally recognized dietary guidelines; • Giving personalized product recommendations; • Displaying a household OptUP score; • Scanning and searching items to find nutrition facts and product alternatives; and • Adding better-for-you options to digital carts for curbside pickup or delivery.
August 2018 Michigan Food News 5
Michigan Grocers proudly salutes its trading partners and encourages all retailers to thank them for their valuable support. Whatever your needs, call these companies first! Other Manufacturers/Specialty Distributor
Beverages Alliance Beverage Distributing Shawn Gary ................................................. (616) 241-5022
Altria Client Services Nicole Kendell ............................................. (614) 225-1923
Great Lakes Coca-Cola Dave Dubes .................................................(616) 458-4536
Arctic Glacier Premium Ice Jim Forsberg (800) 327-2920
Magnum Coffee Robert Johnson ........................................... (616) 638-6120
Paramount Coffee Company Kara Miencier (517) 853-2439 kmiencier@paramountcoffee.com
Country Fresh Craig MacMillan..........................................(800) 748-0480
Plastipak Packaging William Young .............................................(734) 459-8000
Michigan Grocers Fund Dawn Feldpausch ......................................(800) 868-6644 x 246
Produce
Heeren Companies
Joseph D’Ottivio ...(616) 389-2325 ...joseph.dottivio@heerenbros.com Kathy Bussler .....(616) 389-2323 ...kathy.bussler@heerenbros.com
Professional Media Management Jack Ponstine ...................................(616) 456-5555 x 207 Retailers Insurance Company Tom Tuggle ................................................ (800) 366-3699 Schupan Recycling Tom Emmerich ......................................................(517) 333-8845
Aunt Millie’s Bakeries Matt Meiser .................................................(260) 424-8245
Koegel Meats, Inc. John C. Koegel ............................................(810) 238-3685
Independent Food Retailers Association Tom Johnston ............................................. (989) 992-8996
Michigan Brewers Guild Scott Graham ...............................................(517) 515-1444
United Dairy Industry of Michigan Kathi Eckler .................................................(517) 349-8923
Grazing Fields Jane Bush .................................................... (517) 231-2240
HNI Risk Services Jim McKinley...............................................(616) 264-3001
Kellogg Company Diane Williams ............................................(630) 958-7653
Crosset Company Bill Crosset...................................................(859) 801-5965
Cookie Cupboard Gourmet Dough Ellen Pignatiello ...........................................(216) 524-0974
Electronic Payment Services Darcy Gates ................................................ (800) 366-3699
Larkin Insurance Group Steve Merten ...............................................(231) 947-8800
Prairie Farms Dairy Joe Risdon ........................................(269) 441-6455 x 234
Deli/Bakery and Meat/Seafood
ConnectPay Paul Altavena ..............................................(313) 331-4595
Crown Poly Greg Walker.................................................(330) 328-2574
King Arthur Flour David Vaughan ........................................... (901) 351-4751 Dairy Products
Services/Software/Insurance/Trade Group continued
Michigan Apple Committee Diane Smith .................................................(800) 456-2753 Michigan Potato Industry Commission Michael Wenkel ............(517) 253-7370 ........info@mipotato.com
Shelby Publishing Company Geoff Welch .................................................(312) 802-5877 Walton Insurance Group Cynthia Weaver ........................................... (517) 787-2600
Lipari Foods Joe Calo..........(586) 447-3500 ........... joe_calo@liparifoods.com
Snacks Services/Software/Insurance/Trade Group Acuity, A Mutual Insurance Co Mike Duescher ............................................(800) 242-7666
Michigan Brand Mike Grillo................................................... (989) 893-9589 Michigan Pork Producers Association Mary Kelpinski ............................................ (517) 853-3782 Miller Poultry Fred Lechlitner .................................(260) 829-6550 x 525 Superior Foods Company Brian Mesman............................................. (616) 541-2158
Williams Cheese Co. Pat Meehleder (800) 968-4492 x 15
6
Michigan Food News August 2018
AppCard Inc. Merrick Rosner ...........................................(201) 878-4824 The Campbell Group A DIVISION OF ACRISURE
Mark Castillo (269) 599-4560 mcastillo@thecampbellgrp.com
Better Made Snack Foods Inc. Mike Esseltine, Vice President of Sales (989) 684-6271 messeltine@bettermadesnackfoods.com
Elite Snacks Inc. Joe Popiel ....................................................(616) 452-6903 Mondelez International — Nabisco Snacks Ron Dunbar .................................................(616) 308-5987
Supplies/Equipment/Transportation Carlin Edwards Brown PLLC Michael Brown (517) 321-4616 mbrown@cebhlaw.com
Alternative Utility Services Fritz Kreiss ...................................................(262) 248-0930 AMRA Energy LLC Dave Duthler................................................(616) 446-2371 BUNZL Distribution Doug Spencer.................................(810) 714-1400 x13150
Supplies/Equipment/Transportation continued Business Machines Company Robert Bauer ............................................... (517) 485-1732
Supplies/Equipment/Transportation continued
Wholesaler/Distributor
continued
TOMRA - Michigan Steve Parker ........(616) 302-1484......steve.parker@tomra.com
SpartanNash Jim Gohsman (616) 878-8088 ........................Jim.Gohsman@spartannash.com
UBCR LLC Nick Kronsbein............................................(248) 529-2605
SUPERVALU Mike Schiffli.................................................(260) 480-7268
Consumers Energy Danielle Mackey ..........................................(517) 778-1215 Envirochemical Inc. Brian Fox .........(440) 287-2200 ........BFox@envirochemical.com
Wholesaler/Distributor
GMR of Grand Rapids Rae Ann Elliott..................................(616) 454-0481 x 203
Hilco Fixture Finders Tanner Yager ...............................................(616) 272-4906 Associated Whole Grocers Inc. Wayne Hall (608) 347-7318
International Game Technology (IGT) Rick Sherrer ................................................ (517) 272-3375 Kent Butchers’ Supply Co. Ben DeMots .................................................(616) 534-4050 Nichols Tina Saunders ..............................................(419) 419-1998
Foster Blue Water Oil Dan Wynn ....................................................(810) 650-9081
Novolex Phil Rozenski ...............................................(616) 402-4244
Great Lakes Foods Gene Mylener ..............................................(800) 800-7492
Star Truck Rentals Inc. Brent Larson ............ (616) 243-7033 ....... brentl@starlease.com
Great North Foods Jim Kent .......................................................(989) 356-2281 H.T. Hackney Co. Craig Diepenhorst (616) 261-6600 ..................... craig.diepenhorst@hthackney.com
Thermo King Michigan Jim Hostler ..................................................(616) 878-4900
Survey Reveals Shoppers’ Preferences for Grocery Store of the Future continued from page 5
Temperature Control/Safety/Environment 92% say it’s important that there is consistent temperature control for all cold products. 74% say grocery stores should do a better job of letting consumers know that the refrigerated and/or frozen foods have been kept at a consistent temperature. 63% sometimes worry that the food they buy may not be safe and/or clean. 78% say there’s nothing worse than getting what they think is a cold beverage, but it’s not cold enough or it’s too cold or frozen. 82% say it’s important that the store is environmentally friendly and supports local growers/producers. RETAIL EXECUTIVE INSIGHTS
Industry Partners
In part two of the study, Phononic surveyed more than 200 grocery executives to see how their current actions and future plans align with shopper expectations. Interesting trends emerged. For instance, 70% of grocery executives said if grocery stores don’t enter the modern age, more people will look for other ways to get their food. This sentiment aligns with consumer views; 56% of shoppers expressed the same sentiment. In-store Technology 60% of executives say their organization does invest enough in in-store technology. 70% say, when it comes to implementing new technologies to improve customer experiences, their organization is proactive. Despite a view of proactiveness, almost half of food retail executives (49%) say grocery stores haven’t yet figured out how to use technology like other retailers have. Half of consumers agreed with this statement. Optimizing Store Layouts 87% of executives say they have worked a great deal to create an optimized store layout; 72% say they are changing the grocery store layout to accommodate micro-visits. Over half of executives say they are offering more prepared grab-and-go meals at checkout. These executive views align with consumers wanting a faster and more convenient shopping experience. And, 92% of consumers said it’s important that the store layout make it easy to find things. Grocery Shopping in 2023 Looking ahead five years, 85% of grocery executives say it is likely that more physical stores will be offering ways to auto-replenish basics. 81% say there will be pop-up supermarkets in urban and rural areas to make it easier to shop. Almost two-thirds (64%) say supermarkets will become more of a community social gathering place with in-store bars and restaurants, and that the majority of supermarkets will be checkout free. 53% of executives say it’s likely frozen and refrigerated items will be distributed throughout stores, rather than just at the back of the store. 74% believe sales of frozen foods will continue to rise in popularity. “[C]ooling innovation will realize distributed solutions that feature healthier food options at checkout, more efficient store layouts, and additional impulse purchases,” Atti says.
MSU Food Industry Management Larry Zink .................................................... (517) 432-2170 WMU Food & CPG Marketing Program Frank Gambino ........................................... (269) 387-6119
Bills Would Require Stores to Post Details for Food Labeled Halal or Kosher
House Bills 6119 and 6120, introduced by Reps Robert Wittenberg (D-Huntington Woods) and Abdullah Hammoud (D-Dearborn), require that stores post the basis upon which food items are represented as Halal or Kosher. The bills also prohibit the sale of food not conforming to the posting. The bills include fines of $500 for a first offense and $1,000 for secondary or subsequent offenses for failing to post the required information. They also make it a misdemeanor and allow for civil lawsuits for selling food labeled as Halal or Kosher that does not meet the specified basis upon which that representation is made as it is posted. The bills were introduced in response to issues with foods being represented as Kosher or Halal but not being prepared properly to meet those standards. “MRA opposes bills that mandate new posting requirements, including HB 6119-6120, but is open to discussing other means to prevent false advertising,” says MRA Vice President of Government Affairs Amy Drumm.
FDA to Modernize Standards for Dairy Products
The FDA announced it will modernize its standards of identity for dairy products. “Food labels – including the name of food – inform consumers about what they’re buying, and standards of identity are used to ensure that foods have the characteristics expected by consumers,” says Commissioner Scott Gottlieb. “The information provided through food labeling must be truthful and not misleading.” One area that needs greater clarity is the wide variety of plant-based foods that are being positioned in the marketplace as substitutes for standardized dairy products. Many of these plant-based foods use traditional dairy terms (milk, yogurt, cheese) in the name. “For instance, we’ve seen a proliferation of products made from soy, almond, or rice calling themselves milk,” explains Gottlieb. “However, these alternative products are not the food that has been standardized under the name ‘milk’ and which has been known to the public as ‘milk’ long before the 1938 Federal Food, Drug, and Cosmetic Act was established.” Over the next year, the agency will look at next steps which will likely include issuing guidance for industry and a new compliance policy outlining the FDA’s enforcement approach. August 2018 Michigan Food News 7
MAKE SHOPPING YOUR STORES EASIER THAN EVER
SpartanNashÂŽ and Freshop have partnered to bring you a worry free entry into the world of e-commerce. Give your customers the convenience they want with easy online groceries.
Call today to learn more about online shopping and other solutions from SpartanNash!
Jim Gohsman 616-878-8088 | Roger Delemeester 989-245-0337 www.spartannash.com
Congratulations to the 2018 Felice Scholarship Winners Michigan Retailers Association announces the 2018 Paul M. Felice Memorial Scholarship winners. Each recipient receives a $2,000 scholarship toward any accredited, nonprofit private or public U.S. university. Scholarship recipients were chosen by a third-party administrator – International Scholarship and Tuition Services. These one-year scholarships are awarded annually to high school seniors, college freshmen, sophomores, or juniors who are the children of Dakota Birr employees of Grocers Division members or who are part-time student employees of member companies for at least six months of the year in which the scholarships are awarded. The four 2018 winners are: Dakota Birr, whose mother, Kathy, works for Meijer. Paul Flickinger, whose father, David, works for Meijer. Isabella Licavoli, who works part-time at Kroger. Abigail Sykes, whose father, Jonathan, worked for Meijer. In evaluating the applicants, the committee considers academic Paul Flickinger record, test scores, extracurricular activities, and recommendations. Dakota will be a freshman at Michigan State University this fall where he plans to major in mechanical engineering. With a GPA of 3.56, he graduated magna cum laude from Oxford High School where he participated in varsity football and track. “I am humbled and grateful to be selected to receive this scholarship,” he said. “This will greatly accelerate my future career as a mechanical engineer.” Paul is now a two-time Felice Scholarship winner. He will be a senior at Benedictine College in the fall. Double majoring in finance and accounting and minoring in entrepreneurship, his current GPA is 3.84. This fall he will be the CEO of the Student International Business Council, Vice President of Enactus – a business club, and one of the student managers of the CAW Fund (the college’s endowment fund that is invested in the stock market). He also played college rugby last year and
works in the college business office and as a finance tutor. “I am very honored to be a two-time recipient of the Paul M. Felice Scholarship,” he said. “Over the past couple years, this financial assistance has been essential to my continued pursuit of a career in finance and accounting, and I am very grateful to the donors and all who have made it possible.” After graduation, he hopes to work in finance in the Grand Rapids area. Isabella Licavoli Isabella will be a sophomore at University of Michigan in the fall where she majors in neuroscience/biology. With a current GPA of 3.765, she has received the University Honors designation. She is a member of the pre-med club. A 2016 graduate of Eisenhower High School with a weighted 4.22 GPA, she was valedictorian and Biology Student of the Year. She also received a bronze medal on the National Spanish Exam and the President’s Award for Educational Excellence. “I am extremely honored to be Abigail Sykes picked to receive the Paul M. Felice Scholarship,” she said. “I will be putting it to good use to help pay for my continuing education at the University of Michigan.” After graduation, she plans to attend medical school and become a pediatrician. Abigail will be a sophomore at Alma College this fall where she majors in political science and economics with a 3.471 GPA. She plays college soccer, is in the Honors Program, and has made the Dean’s List. A 2016 graduate of Reeths-Puffer High School, she graduated summa cum laude, was All Conference and All District in soccer, and participated in PALs to mentor younger students. “I am incredibly grateful and extremely excited to start my sophomore year at Alma with the help of this generous scholarship,” she said. “Thank you so much for choosing me!” After graduation she plans to attend law school. Congratulations to the 2018 winners!
Lottery News
Doubler Days Returns in September Expected to Boost Club Keno, Fantasy 5, Lotto 47 Sales By Brian O. Neill, Michigan Lottery Commissioner Michigan Lottery players have a chance to double their fun this September when the popular Doubler Days promotion returns. From Sept. 1-30, all Club Keno, Fantasy 5, and Lotto 47 tickets purchased at Lottery retailers are eligible for Doubler Days. A Doubler message will be printed on random tickets and will double all non-jackpot prizes won on that ticket, without any additional cost to players. The Doubler feature also will apply to EZmatch prizes on Fantasy 5 and Lotto 47 tickets. Club Keno Extra and The Jack prizes are excluded from the promotion. This popular promotion has a strong track record
of generating excitement among players and boosting sales for retailers. The Doubler Days promotion offers double benefits to retailers with increased sales and increased commissions. Cash in with Super Raffle Since 2006, the Lottery has offered 25 different raffle games. These games have featured different designs and top prize amounts ranging from $40,000 tax free to nearly $2.5 million. The Super Raffle game will feature the richest payouts of any raffle game offered by the Lottery. It will feature a top prize of $4 million and two $2 million prizes. We expect player excitement
for this raffle to reach unprecedented levels and help boost store traffic and sales for retailers. Tickets for the Super Raffle went sale Aug. 12. Each Super Raffle ticket costs $50, giving retailers a $3 sales commission on every ticket sold. Sales will be quick and easy for retail staff, since each play is an Easy Pick so players won’t have to use play slips. Each Easy Pick play will feature a unique six-digit raffle number. In addition to a $4 million top prize and two $2 million prizes, other prizes are: $100,000 (10), $500 (3,300), and $100 (12,000). The Super Raffle drawing will take place on or after Sept. 19. August 2018 Michigan Food News 9
Country Fresh Plant in Livonia to Close Kroger Names Ken DeLuca Dean Foods announced it will close the Country Fresh plant in Livonia. A letter from Association Member Country Fresh to the Michigan Division President Michigan Workforce Development Agency says the plant will begin downsizing its workforce on August 20 and expects to close by September 7. Country Fresh requested help from the agency in finding new jobs for the employees.
Great North Foods to Close
Association Member Great North Foods announced plans to close in mid-September, with the exact date depending on inventory levels. In business for 88 years, Great North serves more than 600 retailers in Michigan and parts of Illinois, Indiana, Ohio, and Wisconsin. Great North has been a Michigan Grocers Association member for 50 years.
The Kroger Co. promoted Ken DeLuca to president of the Michigan division, effective August 1. DeLuca, who was the vice president of operations for the Dillons division, succeeds Scott Hays who was promoted to president of the Cincinnati/Dayton division. “In his 30 years with the company, Ken has shown not only an aptitude for running a grocery business, but also a passion for connecting with our customers and our associates and creating an uplifting shopping experience in our stores,” says Kroger Chairman and CEO Rodney McMullen. In coming to Michigan, DeLuca returns to the division where he began his Kroger career in 1988 as a store clerk. In 1990, after graduating from Wayne State University in Detroit, he began Kroger’s management training program and went on to hold multiple leadership positions in the Michigan division, including store manager, grocery coordinator, category manager, labor relations manager, human resources director, and operations district manager. In 2004, he moved to the Columbus division as operations district manager and in 2005, was promoted to retail operations vice president for the Dillons division. DeLuca was promoted to vice president of merchandising in 2008 and then to vice president of operations earlier this year.
United Natural Foods to Buy SUPERVALU
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10 Michigan Food News August 2018
United Natural Foods, Inc. and SUPERVALU entered into a definitive agreement under which UNFI will acquire SUPERVALU for approximately $2.9 billion, including the assumption of outstanding debt and liabilities. UNFI CEO and Chairman Steven Spinner will lead the combined entity. UNFI Chief Operating Officer Sean Griffin will lead the SUPERVALU integration efforts post close. He will also lead an integration committee comprised of executives from both companies to drive the implementation of best practices from each company and the delivery of important synergies and a rapid and smooth integration Currently, Whole Foods accounts for about a third of UNFI’s business. That contract is set to expire in 2025. Industry analysts note that buying SUPERVALU will make UNFI less dependent on Whole Foods. The purchase has been approved by the boards of directors of both companies and is subject to antitrust approvals, SUPERVALU shareholder approval, and other customary closing conditions. It is expected to close in the fourth quarter of calendar year 2018. UNIF said that, “over time, the company plans to divest SUPERVALU retail assets in a thoughtful and economic manner.”
Padden Named Department of Ag Food Safety and Inspection Program Manager
Michigan Department of Agriculture and Rural Development (MDARD) Director Gordon Wenk announced the selection of James Padden as manager of the department’s Food Safety and Inspection Program in the Food and Dairy Division. Padden replaces Sandra Walker who retired in June. Michigan’s grocery and convenience stores, food processors, and food warehouses are regulated by the Food Safety and Inspection Program, in partnership with local health departments. Staff works with a variety of food industry, regulatory, consumer, and academic partners to assure the food produced, distributed, and sold in Michigan is safe. “Jim’s combined management experience and extensive knowledge of food safety are an asset to the program, the department, and the food industry,” said Wenk. “His expertise of state and federal food regulations and proven leadership skills will help further strengthen our efforts to assure a safe and wholesome food supply.” Padden joined MDARD in 1995 and has over 22 years of food safety experience including serving as a food safety inspector in the department’s East Region, as a processing and labeling senior inspector, and most recently as the North Region supervisor – a position he held for the past 11 years. He also has 10 years of environmental remediation experience in the private sector. Padden has specialized training and certification in several food safety processes including specialized meat processing, mushroom identification, good manufacturing practices, and seafood and juice Hazard Analysis Critical Control Points. He attended the National Advisory Committee on Microbiological Criteria for Foods Shelf Stability course and received training on the new Food Safety Modernization Act requirements. A 1986 graduate of Michigan State University, he received a bachelor’s in biology and physical science.
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MRA’s Jim Hallan, FMI’s Leslie Sarasin, and Motivational Speaker Michael Broome to Present
Food Retailers Summit September 23-25 Crystal Mountain Resort Thompsonville, MI Sunday: Reception, Al Kessel Awards Dinner, and New! Euchre Tournament Monday: Breakfast, Opening Session:
Michigan Grocers Division & Government Affairs Update, by Jim Hallan, Michigan Retailers Association Michigan Grocers Fund Update USDA Update and Opportunities, by Jason Allen, State Director for USDA Rural Development U.S. Grocery Shopper Trends, by FMI’s Leslie Sarasin Loss Prevention and Active Shooter Tips, presented by Target
The Food Retailers Summit Will Take Networking to the Next Level A Refreshed Agenda Gives Retailers & Suppliers Better Opportunities to Connect
New! Grocer-Supplier Connect Luncheon, Bocce, Cornhole, Reception, Dinner & Entertainment, Finals “Under The Lights” Tuesday: Breakfast, General Session: Speaker: Michael Broome “Be a People Power Person!”
Golf Outing, Mountain Ridge Course
What’s New? Out with the Trade Show, in with the Grocer-Supplier CONNECT Luncheon – to provide more personal, effective networking. We’ve dropped the registration fee to $120 in honor of the 120th gathering. There is no extra fee for meals. Spouses can attend for free! Each year attendees are enthusiastic about the activities unique to the Michigan Grocers event, such as bocce and cornhole. This year we’re adding a Euchre tournament — another opportunity to connect and have fun. What’s Continuing? Great speakers with sessions on government affairs, shopping trends, leadership, service, best practices in store safety, and more. Your favorite events – including bocce, cornhole, and golf. This year’s golf outing will be on the fantastic Mountain Ridge course. We’ll celebrate Outstanding Retailer Hollywood Markets and Outstanding Business Partner Aunt Millie’s Bakeries at this year’s Al Kessel Awards Dinner. REGISTER TODAY: ATTENDEE AND SPONSOR REGISTRATION FORMS ARE AVAILABLE AT bit.ly/MGAsummit18 DEADLINES: SPONSORSHIP, SEPTEMBER 7 ATTENDEE REGISTRATION, SEPTEMBER 14 HOTEL RESERVATIONS, AUGUST 27 DIRECTLY WITH CRYSTAL MTN (855) 520-2974; ASK FOR THE MICHIGAN GROCERS BLOCK, USE GROUP CODE 4642OM OR BOOK ONLINE AT bit.ly/foodsummit18 QUESTIONS? CONTACT NORA JONES, NJONES@RETAILERS.COM