2012 Southern Annual Meeting Magazine

For Members Only

SAWD 89th Annual Meeting & Trade Show May 31 & June 1, 2012 Hilton New Orleans Riverside • New Orleans, LA

Inside…

20 2011 Award Winners 34 Southern Showcase Schedule of Events

56 Officers and Directors Elected and Installed

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60 Orlando Convention Wrap-Up

T he MIllion-Dollar Question: How Much Does It Cost to Carry Inventory?

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Advertisers Directory

The Southern…Home to 46% of all C-Stores in the USA

Best Wishes for a Successful Convention!

Welcome to New Orleans!

Table of Contents Letter from the Governor of Louisiana . . . . . . . . . . . . . . . 2 Letter from the Mayor of New Orleans . . . . . . . . . . . . . . . 4 Letter from the SAWD President . . . . . . . . . . . . . . . . . . . 6 Letter from the SLD President . . . . . . . . . . . . . . . . . . . . . . 8 Hospitality Suite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 First Lady’s Social Invitation . . . . . . . . . . . . . . . . . . . . . . 13 Letter from the Executive Director . . . . . . . . . . . . . . . . . 14 Award Winners 2011 . . . . . . . . . . . . . . . . . . . . . . . . . 20-21 2012 Education Fund Contributors . . . . . . . . . . . . . . . . 22 New Exhibitor Spotlight . . . . . . . . . . . . . . . . . . . . . . . . . 26 15th Annual Silent Auction . . . . . . . . . . . . . . . . . . . . . . . 28 A Note About Anti-Trust . . . . . . . . . . . . . . . . . . . . . . . . 30 Welcome New Members . . . . . . . . . . . . . . . . . . . . . . . . . 30 SLD Business Resource 2011 in Destin, Florida . . . . . . . 32 SCHEDULE OF EVENTS . . . . . . . . . . . . . . . . . . . . 34-35 Council of Presidents . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 SAWD Executive Committee . . . . . . . . . . . . . . . . . . . . . 38 2012 SAWD State Directors . . . . . . . . . . . . . . . . . . . 40, 42 2012 At-Large Directors . . . . . . . . . . . . . . . . . . . . . . . . . 44 2012 SAWD Board Broker Rep, SLD Rep, Legislative Liaison . . . . . . . . . . . . . . . . . . . 44 Manufacturer Representatives . . . . . . . . . . . . . . . . . . . . . 46 2011 - 2012 SLD Officers & Directors . . . . . . . . . . . . . . 50 The Million-Dollar Question: How Much Does It Cost to Carry Inventory? . . . . . . . . . . . . . . . . . . . 54-55 2011 - 2012 Officers & Directors Elected and Installed . . . . . . . . . . . . . . . . . . . . . . 56-57 2011 Orlando Convention Wrap-Up . . . . . . . . . . . . 60-61 Mid-Year BOD Meeting in Key West, Florida . . . . . . . . 62 2011 SAWD College Scholarship Winners . . . . . . . . . . . 66 A “Tweet” about Future Social Networking . . . . . . . . . . . 67 Advertisers Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 SAWD 2012

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VISIT US AT COMMONWEALTHALTADIS.COM FOR MORE INFORMATION. CIGARETTES, CIGARETTE TOBACCO, CIGARETTE TUBES, CIGARETTE PAPERS, CIGARS, PIPE TOBACCO

SAWD 2012

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Welcome!

It is my pleasure to welcome the attendees of the Southern Association of Wholesale Distributors’ 89th Annual Meeting and Trade Show to the City of New Orleans.

New Orleans is a city of prosperity and development, and as such I want to thank you for choosing to spend your conference here.

From national publications like the Wall Street Journal calling New Orleans the “most-improved city for business,” to global companies like General Electric investing millions in new jobs in our city, New Orleans is proving to be a hub of talent, fresh ideas and new business.

While you are here, I hope that you will take some time to visit our historic French Quarter, fine restaurants and entertainment venues and absorb the rich culture that makes New Orleans the most authentic and culturally rich destination in America.

I extend my best wishes for a successful conference. Have a wonderful stay in New Orleans.

Sincerely,

Mitchell J. Landrieu Mayor City of New Orleans

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A Letter from the President

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enchmarks are important in helping us to see where we have been and where we are going. I am looking at a couple of significant benchmarks coming up shortly. In just a couple of years, my company’s membership in the Southern will pass the three-decade mark. In just a couple of weeks my term as President of this fine organization will come to a new beginning. Not an end…but a new beginning. I will move into the position of Board Chairman.

We set some goals when I was elected as your president two years ago: • To continue to be actively involved in those states seeking our assistance in legislative and regulatory affairs. The Southern directly impacted legislative and regulatory initiatives in Georgia, South Carolina, and Texas on issues ranging from tax increases to cigarette and cigar stamping, to dealing with onerous reporting requirements mandated by regulatory agencies.

• To offer industry-specific, timely and provocative educational sessions at our meetings. The Southern was the first to address, head-on, the issue of the changing face of our customer base through our cultural diversity initiative. We are leading the way again at this meeting with a session dealing with the seldomtalked-about-but-often-engaged-in topic of diverted product. The educational programming offered through the SLD has been outstanding as well, challenging members, among other things, as to how to evaluate the true ROI of our businesses to be engaging in the social networking craze.

• To increase attendance at our trade show. The trade show floor for the show in New Orleans is sold out. This is the first time we have sold out the show floor in a number of years. Distributor registrations are at an alltime high. This is important because the show is what helps to fund all of the other things that we do for our 6

members. Supporting the show with your attendance is an investment in your business.

• To enhance the value of membership in the Southern. The Southern has always been a membership organization, but it has not always been a “members only” organization.

There is a difference. This is the first year that the show will truly be open to members only. Non-members will not be allowed admittance. Going forward you will see more emphasis on promoting the value of membership in the Southern and to creating and enforcing the value added aspects that membership entails.

As my year as your President comes to a close, I want to thank the members of my Executive Committee: Dick Dunham, Paula Glidewell, Randy Long, and Jimmy Stewart for their faithful service during my term and before. I want to thank my committee Chairs and Vice Chairs as well as the entire Board of Directors for their participation and support. Chris Smythers has done a great job as President of the SLD during his term. Finally, I want to thank our CEO, Greg Martin and his staff for their part in making the Southern a success.

Folks, the Southern will celebrate our 90th Anniversary next year. It is pretty impressive when a company or an organization celebrates 25, 50, or 75 years…ninety years of serving this industry puts The Southern in a class all its own. I can’t wait to see what the education and convention committees cook-up for that celebration… we must be doing something right.

See y’all in “Nawlins!”

Sincerely,

Ricky Jones President SAWD 2012

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A Letter from the SLD President Welcome to the 89th Annual Meeting and Trade Show of the Southern Association of Wholesale Distributors in New Orleans, Louisiana. We are excited about the opportunities this year’s show will bring to our members.

The 2011 SLD Midyear Meeting held at the Emerald Grande in San Destin, Florida was another successful meeting. Attendance and participation from both our wholesale and manufacturer members were at a high and to me it was one of our most energetic meetings to date. Thanks to our manufacturer sponsors we were able to put on an excellent meeting with industry specific speakers and training. In addition we inserted open discussion among the diverse group of attendees. If you are not sending someone from your company to these meetings you are missing a golden opportunity!

It’s hard to believe I have already reached the end of my 2 year term as SLD president. I appreciate all the support everyone has given me and I look forward to my continued support of the SLD. It’s a great time to be a part of the SLD group! There are several new young faces in our group and they are full of great ideas. The energy level and momentum is fantastic! We have formed two new committees to focus on Technology and Education. They will be responsible for outlining future speakers, topics, and sessions as well as coming up with useful tools and communication methods for the SLD members. By forming these committees we hope to bring an added value to the SAWD as a whole by providing quality networking, education, and training not only at our annual Business Resource Meetings but throughout the year as well through on line tools available to all our members. It will be exciting to see this take shape!

My final plea is to all the SAWD wholesale members. Take notice of those who are on your team who may never get exposed to the industry outside your company walls. Are they future leaders in your company? Do they hold key positions? Can their actions highly affect the profitability of your company? If you answered yes to any of these questions then you have someone you can send to be a part of the SLD. Its not an expense… it’s an investment!!!

Thank you for the opportunity to serve as your president of the SLD. Sincerely,

Chris Smythers

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Š2012 R.J. Reynolds Tobacco Co.

SNUS

WARNING: This product can cause mouth cancer.

Hospitality Suite Be sure to drop by our “Southern Hospitality Suite”…during the day for a cup of coffee or a soft drink… and in the evening, a hosted bar.

It’s a great place to meet, make plans with friends, or just relax.

Adjacent to the Hospitality Suite will be the Silent Auction to benefit our Education Fund. This Silent Auction features over $15,000 worth of items contributed by the members of the Board of Directors, exhibitors, and others.

Hours Open: 9:00 a.m. to 5:00 p.m. — Wednesday After Dinner (About 10:00 p.m.) - Until — Wednesday evening 9:00 a.m. to 5:00 p.m. — Thursday After Dinner (About 10:00 p.m.) - Until — Thursday evening 9:00 a.m. to 1:00 p.m. — Friday River Room in the Riverside Building The “Southern Hospitality Suite” is provided to all convention delegates by the Manufacturer & Broker Representatives on your Southern Board of Directors: Altria Sales and Distribution American Snuff Company Burdette Beckmann Commonwealth Altadis Creative Data Research Dot Foods Jack Links Beef Jerky Lil’ Drug Store Products Lorillard Tobacco Company

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Matrix Brokerage National Tobacco Nestlé USA R. J. Reynolds Tobacco Company Republic Tobacco Company Swedish Match Swisher International The Hershey Company

SAWD 2012

All

American

e d Ma

Goldrush Beef Jerky & Beef Sticks 9706 Crow Rd., Litchfield, Ohio 44253

330-725-1390

goldrushjerky.com

College Scholarships $15,000 to be Awarded This is a wonderful opportunity for students in college or technical school to help defray their school expenses. The deadline for college scholarship applications was April 30, 2012, and we had over 30 students apply for the scholarships. Over $15,000 in scholarships will be given away at the show! Thanks to contributions from members into the Southern’s Education Fund, we are able to fund all of the education functions at the convention as well as give away over $15,000 in scholarships to our members, employees and family members. Scholarships are selected from applications from dues paid members. Contact the SAWD office if you would like an application for 2013!!

770-932-5810.

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First Lady’s Social First Lady Nancy Jones wishes to extend an invitation to all spouses and guests attending the Annual Meeting, to join her for the First Lady’s Social which will be held on Thursday, May 31st from 10:00 am until 11:30 am in the President’s Suite.

This is an ideal opportunity to meet some of the other attendees while enjoying the Brunch.

This Social is also a great meeting place to gather with friends prior to going out for the day.

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Profits Await in “The Big Easy”…

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have rarely been as excited about a meeting line-up for our convention as I am for this year’s meeting in New Orleans. It is not just because Louisiana is where I grew up, though that is part of it. It is not just because the food in New Orleans is arguably some of the best in the world, though that it part of it. It is not just because we are staying in the fabled French Quarter with all the jazz, fun, history, beignets, cable cars, restaurants and nightclubs you can stand, though that’s part of it. These things can be had with any trip to New O ­ rleans and are always enjoyable.

What has me so fired up about this year’s meeting is the unique parts of the meeting that the Education, Convention, and Government Affairs Committees envisioned and that we have been working hard to execute. For starters, since this is an election year, the Education Committee wanted a politicallyoriented speaker—we got none other than the legendary former Governor Edwin Edwards, Louisiana’s only four-term Governor and political icon. The committee envisioned provocative and informative education sessions—we are offering three: a jam-up session on money saving ideas for distributors; the VP Global Conveniece Stores & Specialty Retail for The Hershey company conducting a session on what motivates retail consumers and the retailers who serve them; and the final session is an industry-first session on the topic of diverted product featuring and open and candid conversation with a couple of folks that you have probably never heard of, but that are in the business of diverting product on a daily basis.

If that weren’t enough, the Government Affairs Committee wanted to “kick the Industry Breakfast up a notch.” So, in addition to Mr. Riser who does 14

a fantastic job as our Legislative Liaison, we are excited to bring in Moon Griffon (pronounced “Gri-FONN”), a Louisiana radio talk show host who has been called “the Rush Limbaugh of Louisiana” and who just happens to be an entertainer and motivational speaker as well.

We have sold out the show floor with over 93 exhibiting companies and 111 booths. Most of these companies will be offering show deals available to wholesale distributors in attendance at the show. For each order that distributors place on the show floor, they “earn back” up to 50% of their registration fee in cash at the show!

(Full details on the Distributor Rebate Program may be found in the on-site program).

Ok…if that’s not enough, the Convention Committee wanted to get folks “off campus” to some great New Orleans venues…so, we have a private party for you at Pat O’Brien’s on Bourbon street, golf at TPC Louisiana, and an optional tour that will take folks to Magazine street which is one of New Orleans’ premier shopping and entertainment districts.

Put all this together and you have a formula for increased profits, entertainment, education and excellence that you won’t want to miss! I look forward to seeing you there!

Laissez les bons temps rouler (Let the good times roll!)

Greg Martin Chief Executive Officer SAWD 2012

the marks oF ProFit From the best Customers know when it says “Swisher” on the label, it’s a quality product. From America’s favorite Swisher Sweets to moist Kayak smokeless and an all-star lineup of loose-leaf chewing tobaccos, only Swisher brings you the brands and the margins you need to satisfy your customers and your bottom line.

www.swisher.com

Jacksonville, Florida

800.874.9720

Convenience Store Specialists Committed to “Fixing the Mix” through the use of Infometrics Business Intelligence.

Providing Unparalleled Service For Over 90 Years 1144 Broadway Rd., Sanford, NC 27332-9793 919-774-9444 • www.jtdavenport.com

SLD Midyear Meeting November 8-10, 2012 • Winston-Salem, NC Hotel and Schedule TBD

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YOUR FAVORITE HIGH QUALITY AMERICAN BLEND CIGARETTES

JUST GOT A NEW PAINT JOB

ARS 15 YE King Maker introduces new packaging for its entire line of premium-quality, value-priced cigarettes. Same 100% American blend tobaccos—considered best in the world. Always 100% guaranteed. MSA signatory and 50-state certified.

Supported by a full range of free FDA compliant POS and merchandising materials.

ASKED FOR BY NAME

■

FOR A REASON ■ Partnering with retailers for more than a decade.

Paramus, NJ SAWD 2012

800.317.0377

www.kmm-inc.com 17

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2011 AWARD WINNERS

SAWD sa 2011 Awar

2011 SAWD Service Award

Ricky Jones with Andalusia Distributing Co. congratulates Carter Adair with Jack Link’s Beef Jerky who was awarded a 2011 SAWD Service Award.

2011 Liberty Award

2011 SAWD Service Award

Nef Garcia with McLane Corporate accepts a 2011 SAWD Liberty Award from Ricky Jones with Andalusia Distributing Co.

2011 Liberty Award

Congratulations to Jeff Leischner with Thomas & Howard who received a 2011 SAWD Liberty Award. Seen here with SAWD President, Ricky Jones of Andalusia Distributing Co.

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Nick Zaden with City Wholesale received a 2011 SAWD Service Award. Shown with SAWD President Ricky Jones of ADC.

2011 Lou Gordon Humanitarian Award

Dan McIntyre with Jackson Wholesale accepts the 2011 Lorillard Lou Gordon Humanitarian Award from Lorillard’s Bob Klein.

SAWD 2012

2011 AWARD WINNERS 2011 Southern Leader of the Year Award

alutes our rd Winners!

2011 Candy Representative of the Year Award

Jeff Eldridge with Lorillard Tobacco was awarded the 2011 Southern Leader of the Year Award by last year’s winner, Trey Williams with Thomas M. Williams & Assoc.

David Johnson with Nestle USA received the 2011 SAWD Candy Representative of the Year Award from Carter Adair of Jack Link’s Beef Jerky.

The Southern had a chance to recognize and thank Jim Colucci with Altadis USA for many years of service and support. Mark Davenport, with J.T. Davenport & Sons, is shown with Jim at the presentation.

2011 Career Achievement Award

SAWD 2012

Clark Sturdivant with National Tobacco received the 2011 SAWD Tobacco Representative of the Year Award from the 2010 winner, Tony Barone of Altadis USA.

2011 Tobacco Rep of the Year Award

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Education Fund Contributors 2012 Allison Wholesale

Hardec’s

Penguin Ice

Altadis, USA

Home Folks Wholesale

Quik Trip Corp.

Altria Sales & Distribution

Imperial Trading Company

R. J. Reynolds

Andalusia Distributing

Inter-Continental Cigar Corporation

Renfro Supply Co.

Ashland Specialty Company

J.F. Johnson, Inc.

Republic Tobacco

Atlantic Dominion Dist.

J.L. Gaddy Wholesale

Retalix SCM, Inc.

Baton Rouge Tobacco

J.T. Davenport & Sons

Seneca Southeast Wholesale

Burdette Beckmann

Jack Link’s Beef Jerky

Sledd Co.

Caldwell Wholesale

Jackson Wholesale Co.

Smith Wholesale Co.

Central Sales Company

Joshen Paper

Smokey Mountain Chew

Charles C. Parks Co.

Kelloggs Keebler

Southco Distributing Company

Church Point Wholesale

King III Solutions

Standard Distributing Co.

Cigarette Sales

Lag Inc. dba Jay Bee Co.

Stephenson Wholesale

Claude’s Candy Brokerage Co.

Liggett Vector Brands

Stewart Candy Manufacturing Co.

Coastal Wholesale Grocery

Lil’ Drug Store

Stewart Distribution Co.

Commonwealth Brands

Long Distribution

Swedish Match of North America

Core-Mark, International

Lorillard Tobacco Company

Swisher International

Corso, Inc.

Lyons Specialty Co.

The Corr-Williams Company

Creative Data Research

M. R. Williams, Inc.

The Hershey Company

Dot Foods

Management Science Associates

Thomas & Howard Company

Douglas Companies

Matrix Brokerage

Thomas Williams & Associates

Eby-Brown Company

McLane Company, Inc.

Topicz

FAAN Cigars

Merchants Grocery Company

Trend Settah Inc.

Franklin Supply, Inc.

Meyercord Revenue

Tri-Star Distributing

Glidewell Distributing Company

National Tobacco Company

Turkey Creek Snacks

Grocery Supply Company

Nestlé USA

UniPro Foodservice, Inc

Gummer Wholesale

Oberto Brands

US Roasterie

H. T. Hackney Co.

Pelican Cigar

Venture Sales

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Long Wholesale, Inc. 5173 Pioneer Drive • Meridian, MS 39301 P.O. Box 667 • Marion, MS 39342 (601) 482-3144 • (800) 828-5664 • Fax (601) 482-3109

Long Wholesale Distributors, Inc. 201 North Fulton Drive • Corinth, MS 38834 P.O. Box 250 • Corinth, MS 38835-0250 (662) 287-2421 • (800) 822-5664 • Fax (662) 287-6689

Meridian Kenny Coghlan Ray Long, Jr. Sam E. Long, III Trey Long Barnes Marshall

Corinth Rusty Boone Tracy Dye Jeff Johnson Randy Long Tommy Stine

www.longwholesale.com

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230 South 22nd Street • Durant, OK 74701 Phone 580-920-0110 • Fax 580-920-1323 • Toll Free 800-442-2880

www.INWsupply.com

Durant • Norman • Lawton

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New Exhibitor Spotlight We would like to extend a warm Southern Welcome to the following exhibitors who are showing for the first time (or who have not been with us in several years)‌ 4:20 Tobacco Access International CB Distributors CDMA Driarip Acquisitions LLC Dynapep Corporation Finiti Branding Group Fun Factory Candy Good West Industries Hunid Racks Tobacco LLC Mars Chocolate Medina Foods

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National Fruit Flavor Novelty Inc. Opticon, Inc. PAF Associates LLC Signal Cigarettes Southern Beverage Tell Industries Tobacos, USA Inc. US Vapor Corporation V2 Incentives Victory Energize Wis-Pak

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15th Annual Silent Auction to Benefit the Education Fund The Southern’s Education Fund was established several years ago to provide educational opportunities for members, their employees and family members. The Silent Auction, which will be held throughout the convention, will raise money for the fund. Our Education and Convention Committees last year were successful in raising over $15,000 for our Education Fund through the Silent Auction.

With your support and participation we hope to exceed that figure this year. Items are offered through the generosity of Southern members and exhibitors. Some of the items already committed for this year include:

Prize

Donated By

Retail

Opening

Custom Design Patriotic Corn Hole Set

Merchants Grocery Co. Inc.

$300

$150

Pendant

Burdette Beckman Inc.

$145

$75

Earrings

Burdette Beckman Inc.

$145

$75

Ring

Burdette Beckman Inc.

$145

$75

2 Gerber Knives

Swedish Match

$100

$50

Limited Addition Silver Stag Knife (Only 250 made and certificate of authenticity)

Swedish Match

$300

$150

Gold Earrings

Atlantic Dominion Dist.

$600

$300

Diamond Cross Necklace

Southco Distribution

$400

$200

Oakley Men’s Sunglasses

Southco Distribution

$150

$75

Scotty Cameron Putter

Lorillard Tobacco Company

$300

$150

Yamaha desktop audio system

Republic Tobacco

$309

$150

3 day Spring turkey hunt at Candyland for two.

(Spring 2013 between late March and early May)

Stewart Distribution

$400

$200

Charleston Sweetgrass Baskets

JL Gaddy Enterprises

$150

$75

Machine Gun

Matrix Brokerage

$850

$425

iPad 3, WiFi, 32 GB

Creative Data Research

$600

$300

Ladies Weekender Bag w/ Cosmetics Case

SAWD Member Donations

$50

$25

Williams Sonoma Serving Platter & Silicone Pot Holders/Trivets

SAWD Member Donations

$55

$25

Williams Sonoma Gift Package w/ Mesh Grill, Spices, and Fish Spatula

SAWD Member Donations

$65

$30

Pandora Gray Pearl Necklace

SAWD Member Donations

$110

$55

Bose SoundDock Digital Music System

SAWD Member Donations

$225

$110

Nikon Coolpix L120 Digital Camera

SAWD Member Donations

$300

$150

Men’s Citizen Eco-Drive Atomic Watch

SAWD Member Donations

$325

$160

Grey Dog Studio Tumbled Sea Glass Utensils and Hors d’oeuvre Set

SAWD Member Donations

$60

$30

Ladies’ Citizen Eco-Drive Atomic Watch

SAWD Member Donations

$210

$100

Brighton Joliet Necklace and Earrings

SAWD Member Donations

$90

$45

Waring Pro Snow Cone Maker w/ Syrup

SAWD Member Donations

$85

$40

Lots of other surprises purchased by Staff with your generous contributions!!!!!

SAWD Member Donations

$$

$

Pearl, Silver, Lab created stones:

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A Note About Anti-Trust…

As this meeting begins, we must remind you of c­ ertain essential ground rules which must be respected, not only at this meeting, but on every occasion, social or otherwise, during any meeting of The Southern Association of Wholesale Distributors.

There can be absolutely no discussion between or among competitors at any time concerning prices you charge or propose to charge your customers… the price you pay or propose to pay your suppliers… or the terms and conditions under which you buy and sell the products in which you deal.

The antitrust laws are designed to encourage competition at all levels of production and ­distribution. The Southern Association of Whole­sale Distributors is committed to ­ad­herence to those laws. Please keep these principles in mind for the benefit of us all.

WELCOME NEW MEMBERS! On behalf of the members, directors, and officers of The Southern, we would like to welcome the following new members:

Cochran Brothers Co.

PAS Associates LLC

FAAN Cigars

Tobacos USA, Inc.

Kraft Foods

Trend Settah, Inc.

Mars Chocolate

Tri-Star Distributing

Medina Foods

U.S. Flue-Cured Tobacco

MOBISOFT

W. L. Petery Wholesale Co.

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Hershey’s continuous innovation sparks new customers and re-energizes the category. By launching new classics such as HERSHEY’S® AIR DELIGHT™ aerated chocolate, REESE’S® Minis and HERSHEY’S® Drops, Hershey’s innovation helps drive demand. To learn more, contact your Hershey’s Customer Sales Executive today.

PROUD TO SUPPORT THE SOUTHERN ASSOCIATION OF WHOLESALE DISTRIBUTORS

LEADING CATEGORY RESULTS

ICONIC BRANDS I INNOVATION I INSIGHTS I RETAIL DEMAND www.hersheys.com ©2012 The Hershey Company

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SLD Meeting in Destin, Florida The beautiful Emerald Grande Resort in Destin, Florida, was the location for the 2011 SLD Business Resource Meeting.

Members of the Southern Leadership Division participated in a two-day conference focusing on topics specific to the convenience products industry.

Informative and interactive sessions were well received on topics such as “Unleash Your Full Potential” led

by Maria Miro-Narlock, partner with Spotlight Innovations and “Finding the Right Formula to Maximize the Profit of Your Shelf Space” with Michael Hughes, Southeast Area Sales Director, C-Store Channel of The Hershey Company.

Terrance Barkan, CAE of SOCIALSTRAT, spoke on the very current topic of using social media to enhance our businesses 32

with “Social Media—What is the Business Case?”

A panel discussion on “Best Practices in Wholesale Distribution” was led by some of The Southern’s own distributors. As always, these discussions offered many new and different ideas for those in attendance to take back to their own businesses.

A great time was had at by all—ask those who attended about the singing Gerber Baby!

A very special thanks goes to our sponsors for their generous assistance in making this meeting a success!

Platinum Sponsors Lorillard Tobacco R. J. Reynolds Tobacco

American Snuff SAWD Education Fund Gold Sponsors Altadis USA Altria Sales & Distribution Swedish Match Swisher International Silver Sponsors Creative Data Research National Tobacco The Hershey Company Bronze Sponsors Commonwealth Brands Jack Link’s Beef Jerky Republic Tobacco SAWD 2012

INVEST IN SILVER!

NEW! White Owl SILVER Cigarillos 100% freshness guaranteed FoilFresh® technology Smooth taste and uncomplicated tobacco enjoyment

For more information, contact your Swedish Match representative.

800-367-3677 customer.service@smna.com

www.whiteowlcigar.com ©2012 Swedish Match North America, Inc.

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SAWD 89th Annual Meeting and Trade

TUESDAY, MAY 29

the process of recreating the featured artwork.

This is not your average art class, this is art entertainment. Your masterpiece is your souvenir of the day. (If you don’t think you could hang it over your mantle, it may be entered in the Silent Auction to support the education fund!)

2:00 PM - 5:30 PM Registration Desk Open

4:00 PM - 5:00 PM SAWD Board of Directors’ Meeting

2:30 PM - 3:30 PM Chair/Vice Chair Meeting

4:00 PM - 5:00 PM SLD Board Meeting

3:30 PM - 4:30 PM Committee Meetings

6:00 PM - 7:00 PM Welcome Reception All invited

Note: This is a tentative schedule of events.

All details subject to change. www.the-Southern.org will always have the latest information.

The on-site program supersedes all pre-printed materials

4:30 PM - 5:30 PM Finance & Budget Committee 5:30 PM - 6:30 PM Executive Committee Meeting 6:45 PM - 9:30 PM Chairman’s Reception & Dinner For members of the Board of Directors and Past Presidents.

WEDNESDAY, MAY 30 8:00 AM Start Time for Golf Tournament at TPC Louisiana www.tpc.com/tpc-louisiana See insert for registration form.

9:00 AM - 5:00 PM Registration Desk Open 10:00 AM - 4:00 PM Optional Tour and Luncheon “Matisse on Magazine” Magazine Street—one of New Orleans’ premier shopping and entertainment districts —is an unparalleled collection of neighborhoods with a diverse array of businesses, shops, restaurants and hot spots. After some time experiencing the “Magazine scene” we will enjoy an authentic New Orleans lunch at Corks-n-Canvas (Painting with a Twist). After lunch you will get to paint your very own masterpiece! No previous experience or talent necessary and a local artist will lead you step-by-step through

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7:15 PM - 10:00 PM Southern Soirée Dinner and awards done “Southern style.”

Hospitality Suite - Open to All

THURSDAY, MAY 31 7:15 AM - 5:00 PM Registration Desk Open 7:00 AM - 8:30 AM Kick-Off Breakfast (Continental) 7:30 AM - 8:45 AM General Session - Keynote Speaker “When Worlds Collide: An Insider’s Look at the Intersection of Business and Government” Edwin W. Edwards Former Governor State of Louisiana Edwin Edwards served as the Governor of Louisiana for four terms—twice as many terms as any other Louisiana chief executive has served. A colorful, powerful and legendary figure in Louisiana politics, Edwards was long dogged by charges of corruption. Governor Edwards was, and remains today, an iconic figure in Louisiana politics.

Distributors and manufacturers spend everincreasing resources in the area of governmental affairs. Governor Edwards knows just a little bit about the intersection of business and government and will be with us to talk about it.

9:00 AM - 12:20 PM Education Sessions 9:00 AM - 10:00 AM “This Ain’t Your Mamma’s Coupon Box” Facilitated Panel Discussion Panelists TBA To survive in a difficult business environment prudent businessmen and women must remain ever-diligent to find ways to control costs. Benchmarking what other companies are doing to save money can be an outstanding source of ideas and inspiration. This information-packed session, conducted by your peers in the industry, promises to deliver a tractor-trailer load of ideas to significantly improve your bottom line. You’ve seen NACS’ “Ideas-to-Go” sessions for retailers …well this is the Southern’s version designed specifically by wholesalers and for wholesalers. Don’t miss it!

10:10 AM - 11:10 AM “Finding the Right Formula to Maximize the Profit of Your Shelf Space” Andy Jacobs VP and General Manager U.S. Customers The Hershey Company The Hershey Company recently released the results of an industry-wide research study looking into the behavior and motivation of retail consumers and the retailers who serve them. Join Hershey’s VP and General Manager U.S. Customers, Andy Jacobs as he shares the results of this comprehensive analysis and what you can derive from it that will enhance your profitability. Attendees at this session will learn: • What are the current factors impacting consumers?

• What are the current factors impacting retailers?

• What is candy’s contribution to you profitability?

• How to leverage candy’s profitability.

• The importance of merchandising and assortment.

• How to leverage candy for cross promotion.

• What are your category growth drivers and how to enhance them.

www.The-Southern.org SAWD 2012

e Show — Schedule of Events 11:20 AM - 12:20 AM “Diverters: The 800 Pound Gorilla in the Room” Facilitated Panel Discussion Facilitator: TBA Panelists: Peter Cranston

Sam Haddad There are lots of conversations occurring these days in our industry about who’s diverting product to whom, in which category channels and why. Diverted product is a reality. It’s not illegal, but at the same time a lot of us just aren’t comfortable with it. Come listen to an open and candid session about the “whys” and the “why nots” of considering alternative sources of product. Don’t miss getting the inside scoop from the experts on how this part of our channel works, and if you should be opening your eyes to opportunities that are right in front of you.

10:00 AM - 11:30 AM First Lady’s Social Open to All Spouses and Guests 12:30 PM - 1:45 PM State Association Executives & Political Affairs Luncheon 1:30 PM - 5:00 PM Grand Opening of Exposition 6:00 PM - 7:00 PM “Get Acquainted Reception” 7:15 PM - 10:00 PM Awards Banquet This evening is an opportunity to recognize some of the Southern’s award recipients... people who have each demonstrated extensive commitment to service and achievement in the industry.

Hospitality Suite - Open to All

FRIDAY, JUNE 1 7:00 AM - Noon Registration Desk Open 7:00 AM - 8:30 AM Industry Breakfast (Continental) 7:15 AM - 7:30 AM General Membership Meeting

SAWD 2012

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7:30 AM - 7:45 AM “Governmental Affairs Update”

6:00 PM - 10:00 PM SLD Social

Dave Riser VP External Relations Trade Marketing R. J. Reynolds

“Party at “Pat O’s”!”

Legislative Liaison to the Southern’s Board of Directors, Dave Riser, will bring you the latest developments in state and federal legislation and regulation including the latest from the FDA. 7:45 AM - 8:30 AM Keynote Speaker Moon Griffon Talk Show Host, KMLB FM Blane “Moon” Griffon is a conservative radio talk show host who broadcasts statewide through station KMLB FM in Monroe, Louisiana. He has sometimes been called the “Rush Limbaugh of Louisiana” though his program reflects his distinct Louisiana accent and his own brand of politics. Besides his Monroe outlet, Griffon broadcasts from stations throughout Louisiana as well as in Natchez, Mississippi. Moon is not only a radio talk show host with his finger on the pulse of politics, he is an entertainer and motivational speaker as well. Join us for this entertaining and enlightening session featuring the “Louisiana Limbaugh.”

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Join us for a private party at a location that is world renowned as the hospitality spot of New Orleans - Pat O’Brien’s! Established in the early 1900’s, Pat O’Brien’s is known the world over as the most popular and fun-filled establishment anywhere. We will enjoy our party in a private room, located on the second floor of the Annex, complete with a full bar, copper grand piano and a private Bourbon Street Balcony where some beads will be thrown! A piano player will entertain us on the baby grand piano as we enjoy plentiful drinks from the famous Pat O’Brien’s bar as well as an authentic New Orleans style dinner.

After the party, you can choose to ride back to the hotel- or- continue to party on Bourbon Street. Your ticket includes transportation, dinner, open bar, and good old SLD entertainment!

8:45 AM - 9:45 AM Distributors Forum Representatives of All Distribution Companies are Encouraged to Attend. This meeting is open to Distributors only.

8:45 AM - 9:45 AM Exhibitors Forum Representatives of All Exhibiting Companies are Encouraged to Attend.

10:00 AM - 10:45 AM Board of Directors Meeting 10:45 AM - 11:45 AM Executive Committee Meeting 11:00 AM - 2:00 PM Exposition Open

Pre-purchase your raffle tickets for a chance to win either the latest generation Ipad or one of $500 cash prizes. Proceeds will go to support the Education Fund. For your convenience, we have included a space for you to order your tickets right on the convention registration form. Tickets will be sold on-site as well.

= Ticket Required The Southern 3459 Lawrenceville Suwanee Road Suite C Suwanee, GA 30024-6427 Ph) 770-932-5810 Fax) 770-932-3276 www.the-southern.org

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Council of Presidents

Mark Davenport

J. T. Davenport & Sons, Inc Sanford, NC 2006-2008

Sherwin Herring

Southco Distributing Company Goldsboro, NC 2004-2006

Duane Schneider

DUSA Distribution Center, Inc. Melbourne, FL 1996 - 1998

Dick Bray

Premier Beverage & Equipment Franklin, TN 1989 - 1990

Jack Cofer

James D. Cofer, Inc. Atlanta, GA 1994 - 1996

Grady Smith

TVC Wholesale, Inc. Florence, AL 1988 - 1989

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Steve Shing

Grocery Supply Co. Sulphur Springs, TX 2002-2004

Mike Jones

Andalusia Distributing Co., Inc. Andalusia, AL 2000-2002

Ken Caldwell

Caldwell Wholesale Tobacco Co. Shreveport, LA 1992 - 1994

John Head

Head Distributing Company Smyrna, GA 1986 - 1988

A.C. May

Pelican Cigar Co. Lake Charles, LA 1985 - 1986

Bob Pierpoint

Imperial Trading Co., Inc. Elmwood, LA 1998-2000

Scott Fisher

Spartan Automatic Retailers Memphis, TN 1990 - 1992

John Green

P.M. Green & Sons Cleveland, TN 1979 - 1980

SAWD 2012

Natural American Spirit, the No.1 brand of 100% additive-free natural tobacco products, is proud to offer two styles of cigarettes made with 100% U.S. Grown tobacco.

For more information, contact Santa Fe Natural Tobacco Company at 855.676.5440.

Santa Fe Natural Tobacco Company is a Signatory to the Master Settlement Agreement.

Natural American Spirit速 is a registered trademark of Santa Fe Natural Tobacco Company.速 SFNTC 2 2012

www.nascigs.com

SAWD 2012

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2012 SAWD Executive Committee

Ricky Jones

Dick Dunham

President Andalusia Distributing Co., Inc. Andalusia, AL

Vice President Stephenson Wholesale Co. Durant, OK

Randy Long

Jimmy Stewart

Vice President Long Wholesale Corinth, MS

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Board Chairman Stewart Distribution Waycross, GA

Paula Glidewell

Vice President/Comptroller Glidewell Distributing Co. Fort Smith, AR

Greg Martin

Chief Executive Officer SAWD Suwanee, GA

SAWD 2012

For more than

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has been a leader in convenience products distribution!

Texarkana, Arkansas

Conway, Arkansas www.douglascompanies.com

2012 SAWD State Directors

Butch Youmans H.T. Hackney Opp, AL

Charlie Casper Hardec’s Elizabethtown, KY

Nelson Parker

Danny Austin

Douglas Companies Texarkana, AR

Don Childers

Anthony Gardner

Home Folks Wholesale Augusta, GA

Keith Landen Franklin Supply Franklin, LA

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Steve Douglas

Allison Wholesale, Inc. Paint Rock, AL

Dan McIntyre

LAG, Inc. Tucker, GA

Jackson Wholesale Jackson, KY

McLane Kissimmee, FL

Emile Cantrell

Imperial Trading Elmwood, Louisiana

Liz Joachim Corso, Inc. Biloxi, MS

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2012 SAWD State Directors

Lawson Williams

Gordon Munden

M. R. Williams Henderson, NC

Atlantic Dominion Distributors Hope Mills, NC

James “Bucky�

Johnson

J.F. Johnson, Inc. Batesburg-Leesville, SC

Scott McPherson Core-Mark Fort Worth, TX

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Jeff Leischner

Thomas & Howard Co. Columbia, SC

Robin Ray

Atlantic Dominion Distributors Virginia Beach, VA

Jim Naifeh

Standard Distributing Co. Sapulpa, OK

Charlie Smith

Smith Wholesale Co., Inc. Johnson City, TN

Elvin Smythers

Merchants Grocery Co., Inc. Culpepper, VA

Randy Emanuelson Sledd Co. Wheeling, WV

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!

W E N

FRESH JERKY DONE THE JACK LINK’S WAY NEW FORMULATIONS • BETTER taste • HIGHER quality • MORE consistency

NEW PEEL-N-GO TRAYS • EASIER to sell, clean and rotate • IMPROVED shopability

NEW MERCHANDISING • BEST-IN-CLASS fixtures • ENHANCED freshness

Proud Member of the SAWD Contact your Jack Link’s Sales Representative for more information

Link Snacks, Inc. • One Snack Food Lane • Minong, WI 54859 • 715-466-2234 • JackLinks.com

2012 At-Large Directors

Corey Cooper

Stephenson Wholesale Durant, OK

Hugh Raetzsch Lyons Specialty Port Allen, LA

David Edwards Coastal Wholesale Kinston, NC

Steve Shehane

Baton Rouge Tobacco Baton Rouge, LA

Sam Stewart

Steward Distribution Waycross, GA

Bill Wilkerson

J. L. Gaddy Wholesale Hickory Grove, SC

Nick Zaden

City Wholesale Grocery Birmingham, AL

2012 SAWD Board Broker Rep, SLD Rep, Legislative Liaison

Bob Taylor, Sr.

Broker Representative Burdette Beckmann, Inc. Hollywood, FL

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Bennett Roberts

Broker Representative Matrix Brokerage Chapel Hill, NC

Chris Smythers SLD Representative Merchants Grocery Culpepper, VA

Dave Riser

Legislative Liaison R.J. Reynolds Winston-Salem, NC

SAWD 2012

www.stewartcandy.com

Manufacturer Representatives

April Drummond

Altria Sales & Distribution

Tony Barone

Russ Mancuso

Altadis Commonwealth

Altadis Commonwealth

Dot Foods

Jack Link’s Beef Jerky

Carter Adair

Tom Brice

Clark Sturdivant

Dave Johnson

Victoria Person-Goral

Steve Sandman

Tony Clanton

Mandi Clark

National Tobacco

Republic Tobacco

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Nestlé USA

Swedish Match

Lil’ Drug Store

R. J. Reynolds Tobacco Co.

Bill Dunn

Swisher International, Inc.

Jebb Maginnis

Creative Data Research

Bob Klein

Lorillard Tobacco Company

Dave Riser

R. J. Reynolds Tobacco Co.

Michael Hughes

The Hershey Company

SAWD 2012

SAWD 2012

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Old Dominion Tobacco Co. A.T.C. Wholesale Trading as

Headquarters Virginia Beach, VA Hope Mills, NC Since 1875

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SAWD 2012

A Family Business Since 1926

Providing what you need, when you need it

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SLD 2011 – 2012 SLD Officers and Directors Officers Chris Smythers, Merchant’s Grocery, Culpeper, VA, President Mickey McDaniel, Imperial Trading, New Orleans, LA, Vice President Barry Krebs, Keebler Company, Mableton, GA, Treasurer Jeff Eldridge, Lorillard Tobacco Company, Jacksonville, FL, Secretary Sam Stewart, Stewart Distribution, Waycross, GA, Board Chairman

Directors Chris Herbert, Altria Sales & Distribution, Charlotte, NC Chris Jones, Andalusia Distributing Co., Andalusia, AL Marc Margolis, Creative Data Research, Ann Arbor, MI Marty Howell, H. T. Hackney, Opp, AL Donnie Childers, Home Folks Wholesale, Augusta, GA Trey Long, Long Distribution, Marion, MS Mike Thorner, National Tobacco, Louisville, KY Ron Leitner, R. J. Reynolds Tobacco, Winston-Salem, NC April Garver, Southco Distributing, Goldsboro, NC Chris Wise, Southco Distributing, Goldsboro, NC Victor Blanco, Swisher International, Ponte Vedra, FL Jere Loggins, Thomas & Howell, Columbia, SC Trey Williams, Thomas Williams & Assoc., New Orleans, LA

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SAWD 2012

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Focused on C-Store Wholesalers and C-Store Retailers.

Our focus is “Your Business” in the following markets: FL, N & S Carolina, VA, MD, TN, AL & GA

Corporate Office

5851 Johnson Street, Hollywood, FL 33021 Phone 954-983-4360 Fax 954-983-4405

Additional Offices: Burdette Beckmann, Inc.

12830 W. Creek Pkwy, Richmond, VA 23238 Phone 804-346-4949 Fax 804-346-4977

Burdette Beckmann, Inc.

116 Associate Lane, Indian Trail, NC 28079 Phone 704-821-4677 Fax 704-821-4654

Burdette Beckmann, Inc.

516 Douglas Ave., Ste. 1102, Altamonte Springs, FL 32714 Phone 407-869-0797 Fax 407-869-0059

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SAWD 2012

Home Folks Wholesale Co., Inc. Since 1938 Distributors of convenience grocery, candy, tobacco, and general merchandise.

Visit us on the Web at www.homefolksdist.com 2001 Westside Dr., Augusta, GA 30907 706-868-0055 • 800-762-7588 Fax: 706-868-1154 SAWD 2012

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The Million-Dollar Question: How Much Does It Cost to Carry Inventory?

By Dan Kiefer If you had to guess, how much would you say it costs to keep inventory in your warehouse every year? If you don’t know, you’re not alone. As many as 65% of the wholesalers in the United States don’t know what their carrying costs are. If you are among them, I can promise you this: that cost is likely much higher than you think. In fact most experts estimate the annual cost of carrying inventory is between 18 and 35% with some estimates as high as 50%!

In an economy where interest rates are at historic lows, it’s easy to fall into the trap of thinking that since inventory seems cheap, you’re better off carrying extra.

The unfortunate reality is that the interest you pay on your inventory actually makes up a very small portion of the total cost of carrying that inventory. In order to find the true cost of your inventory, you must make sure you factor in things such as the cost of money, storage, taxes, obsolescence and shrinkage. Although these costs will vary from one company to the next, they will always be present. Let’s investigate these costs and how each would contribute to carrying cost for a wholesaler with an average inventory of $5,000,000. These calculations are based on numbers provided by The Society of Cost Management.

Cost of money The first, and by far largest factor in inventory carrying cost is the cost of money. Yes, this includes the interest you are paying on your money, but it’s much more than just that. The larger part of the cost of money comes from lost opportunity cost. If you currently have $5,000,000 of inventory, you likely have that sitting on a credit line. If you could reduce your inventory to $4,000,000, what would you do with the $1,000,000 of increased cash flow? Would 54

you let it sit unused? More than likely not. You would probably reinvest it where it could help your company.

New trucks, expanded territories, additional people, and newer, more efficient technology all become possible with that increased cash flow. This cost is typically seen as about 15% of your average inventory.

Cost on $5M of inventory = $750,000

Storage Whether you own or lease, you are paying for warehouse space. The more inventory you have, the more warehouse space you need. In addition, you probably have an expensive set of racks, conveyors and mezzanines. If you didn’t have so much inventory, what would you do with the smaller space requirement? Would you have a smaller warehouse?

Could you rent out the extra space? Would you expand your product offerings? If so, please see: “Opportunity Cost”.

Storage cost typically adds 4% to your carrying cost.

Cost on $5M of inventory = $200,000

Taxes As Ronald Reagan said, “Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” Your inventory is always moving…so the government will tax it. Some districts tax inventory outright. The more inventory you have, the more taxes you will pay. Even if you are fortunate enough to operate in a district where this is not the case, most accounting rules see inventory as an asset. Any time you increase inventory, it shows as a “profit” and will be taxed as such.

SAWD 2012

Taxes will generally add 2.5% to your annual carrying cost.

Cost on $5M of inventory = $125,000

Obsolescence and Spoilage There’s no denying it, as quickly as trends come and go in this day and age, there will be times when products in your inventory will become obsolete. No matter how efficient your buying staff or how long they have been in their roles, they can’t possibly anticipate every change in the market. If you have any VCRs in your warehouse today, it’s a safe bet they won’t be going anywhere.

Typical losses due to obsolescence and spoilage is 1%.

Cost on $5M of inventory = $50,000

Shrinkage and Damage This category should not be confused with obsolescence.

This category includes inventory that came into the warehouse and should have been sold but can’t and won’t be. Where as obsolescence and spoilage have to do with purchasing and the market demand, pilferage and damage can often be attributed to human behavior in your warehouse. Although this cost can vary greatly from one warehouse to the next, and can often be controlled and reduced, it can never really be eliminated.

Whether a forklift hits a pallet, a jar gets dropped during handling, or someone gets over zealous with a box cutter, damaged products in a warehouse are a fact of life and must be accounted for. The longer something sits in your warehouse, the greater the risk of it being damaged or disappearing.

SAWD 2012

The typical cost associated with shrinkage and damage is 1%.

Cost on $5M of inventory = $50,000

Insurance Your insurance company is most likely charging you based on the average amount of inventory you have onhand in your warehouse. Although this cost is not huge, it is still present.

Insurance costs are typically .5%.

Cost on $5M of inventory = $25,000 Total annual carrying cost on $5M of inventory = $1,200,000 There you have it…the answer to the million-dollar question. The normal carrying cost is about 24%. The bad news is that regardless of how much inventory you have, you will always be subject to carrying costs. The goal of the most successful distributors is to reduce the amount of excess inventory present in their warehouse to minimize that costs. For every $1,000,000 you reduce your inventory, you will see a real annual savings of $240,000, not to mention the increased cash flow.

As the saying goes, you can’t manage what you don’t measure. The first step in controlling you carrying cost is understanding that it is always there. However, the biggest challenge for any distributor trying to control this cost is balancing inventory levels with service levels. As one of our customers said, “Too much inventory may cost you money, but not having enough will cost you customers.” This is why it is even more important than ever to make sure you’re replenishment process looks at both sides of the proverbial coin.

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Officers & Directors EXECUTIVE COMMITTEE President Vice President VP/Compt.

Vice President Board Chairman

Ricky Jones Dick Dunham Paula Glidewell Randy Long Jimmy Stewart

Andalusia Distributing Stephenson Wholesale Glidewell Distribution Long Wholesale Stewart Distribution

STATE DIRECTORS STATE Alabama Alabama Arkansas Florida Georgia Georgia Kentucky Kentucky Louisiana Louisiana Mississippi North Carolina North Carolina Oklahoma South Carolina South Carolina Tennessee Tennessee Texas Virginia Virginia West Virginia

DIRECTORS Butch Youmans Nelson Parker Steve Douglas Danny Austin Don Childers Anthony Garner Charlie Casper Dan McIntyre Keith Landen Emile Cantrell Liz Joachim Gordon Munden Lawson Williams Jimmy Naifeh Bucky Johnson Jeff Leischner Charlie Smith Scot Shanks Scott McPherson Robin Ray Elvin Smythers Randy Emanuelson

COMPANY H. T. Hackney Allison Wholesale Douglas Companies McLane Home Folks Wholesale Lag Inc. Hardec’s Jackson Wholesale Franklin Supply Imperial Trading Corso, Co. Atlantic Dominion Dist.

M. R. Williams, Inc. Standard Distributing Co. J. F. Johnson, Inc. Thomas & Howard Co. Smith Wholesale L. P. Shanks Co. Core-Mark Atlantic Dominion Distributors Merchants Grocery Co., Inc. Sledd Company

AT-LARGE DIRECTORS NAME Steve Shehane Sam Stewart Bill Wilkerson David Edwards Nick Zaden Hugh Raetzsch Corey Cooper 56

COMPANY Baton Rouge Tobacco (LA) Stewart Distribution (GA) J. L. Gaddy (SC) Coastal Wholesale (NC) City Wholesale Grocery (AL) Lyons Specialty (LA) Stephenson Wholesale (OK) SAWD 2012

Elected and Installed BROKER & SLD REPRESENTATIVES/LEGISLATIVE LIAISON NAME Bob Taylor Bennett Roberts Chris Smythers Dave Riser

COMPANY Burdette Beckmann Matrix Brokerage Merchants Grocery R. J. Reynolds

BROKER/SLD Broker Representative Broker Representative SLD Representative Legislative Liaison

MANUFACTURER REPRESENTATIVES NAME April Drummond Tony Barone Russ Mancuso Jebb Maginnis Mandi Clark Carter Adair Tom Brice Bob Klein Clark Sturdivant David Johnson Dave Riser Victoria Person-Goral Steve Sandman Tony Clanton Bill Dunn Michael Hughes

COMPANY Altria Sales and Distribution Commonwealth Altadis Commonwealth Altadis Creative Data Research Dot Foods Jack Links Beef Jerky Lil’ Drug Store Products Lorillard Tobacco National Tobacco Nestlé USA R. J. Reynolds Tobacco Company R. J. Reynolds Tobacco Company Republic Tobacco Swedish Match Swisher International, Inc. The Hershey Company

COUNCIL OF PRESIDENTS NAME Mark Davenport Sherwin Herring Steve Shing Mike Jones Robert Pierpoint Duane Schneider Jack Cofer Ken Caldwell Scott Fisher Dick Bray Grady Smith John Head A. C. May John Green Bert Trompeter SAWD 2012

YEAR(S) SERVED 2006-2008 2004-2006 2002-2004 2000-2002 1998-2000 1996-1998 1994-1996 1992-1994 1990-1992 1989-1990 1988-1989 1986-1988 1985-1986 1979-1980 1973-1976

COMPANY J. T. Davenport & Sons, Inc. Southco Distributing Grocery Supply Company Andalusia Distributing Company Imperial Trading Company DUSA Distribution Center James D. Cofer, Inc. Caldwell Wholesale Spartan Automatic Retailers Premier Beverage & Equipment TVC Wholesale Head Distributing Pelican Cigar P.M. Green and Sons John F. Trompeter Company 57

A Full Service Convenience Store Supplier

Since 1937 (256) 776-3268 • 1-800-239-5173 Fax: (256) 776-4717 Highway 72 East Paint Rock, Alabama 35764 www.allisonwholesale.com 58

SAWD 2012

SAVE THE DATE!

Show Days Tuesday, April 23 and Wednesday, April 24

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Orlando Wrap-Up 2011

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he Southern’s 2011 Annual Meeting and Trade Show was held at the Gaylord Palms Resort & Convention Center in Orlando, Florida. The meeting featured the 2nd largest trade show for convenience wholesalers in the country: Southern Showcase 2011.

In addition, attendees received outstanding industry-specific educational sessions, updates on industry and legislative issues and a host of networking opportunities including: golf at The Golden Bear Club, awards dinners on Thursday and Friday

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evenings, the Silent Auction that benefits the SAWD Education Fund, the Hospitality Suite with our very own Karaoke entertainment, a “Winter Park City Tour” optional outing and an evening out that included dinner and a “Blue Man Group” experience!

The Southern Board of Directors and Committees of the association met to carry on the business of the organization.

We would like to extend a sincere debt of gratitude to our sponsors for their part in making this meeting such a tremendous success.

SAWD 2012

2011 Annual Meeting Sponsors Altadis USA Altria Sales & Distribution American Snuff Co. Associated Distributors Burdette Beckmann Commonwealth Brands Creative Data Research

SAWD 2012

Dot Food The Hershey Company Jack Links Beef Jerky Lorillard Tobacco Matrix Brokerage National Tobacco Co. NestlĂŠ USA

R.J. Reynolds Republic Tobacco SAWD Education Fund Smokey Mountain Snuff Swedish Match Swisher International Tantus Tobacco

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Midyear Board of Directors Meeting

Westin Key West Resort & Marina

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he Southern’s Midyear Meeting of the Board of Directors was held at the Westin Key West Resort & Marina, in beautiful Key West, Florida on Feb. 2–4, 2012.

This meeting typically sets the direction of the organization for the coming year, and this year was no exception. Thanks to this meeting, we feel that the 2012 SAWD Annual Meeting in New Orleans, May 29th thru June 1st will be the best yet!

All of the Southern’s committees met, including Finance & Budget, Education, Conventions & Meetings, Government Affairs, Industry Affairs, and the Executive Committee.

A full report of committee activities will be made during the Annual Meeting in New Orleans, LA. We would like to extend a sincere debt of 62

gratitude to all of the members of the Board who were in attendance at this meeting.

The Westin Key West Resort & Marina was a wonderful venue to enjoy working, sharing, brainstorming and networking—managing to find time for some fun in that wonderful Key West weather!

We would certainly like to express our thanks to our sponsors for their part in making this meeting such a success!

2012 SAWD Midyear Sponsors Platinum Sponsors Altria Sales & Distribution American Snuff Commonwealth Altadis Lorillard Tobacco R. J. Reynolds Tobacco

Gold Sponsors Creative Date Research Jack Link’s Beef Jerky Lil’ Drug Store Products National Tobacco Nestle USA Swedish Match Swisher International The Hershey Company Silver Sponsors Burdette Beckmann Dot Foods Matrix Brokerage Republic Tobacco

SAWD 2012

James F. “Bucky” Johnson, President 225 Summerland Avenue Batesburg-Leesville, SC 29006 P.O. Box 2499 Batesburg-Leesville, SC 29070-2499

(803) 532-6341 1(800) 821-9744 Fax (803) 532-9552 www.JFJohnsonInc.com SAWD 2012

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Ashland Specialty Co. Wholesale Distributors

Serving Kentucky, West Virginia and Ohio with candy, tobacco products, groceries, paper goods and institutional items.

We Sell The Old Fashioned Way… We Show It! Ashland Specialty Co.

Wholesale Distributors 125 29th Street • Ashland, Kentucky 41101 Gobel Copley, Jr. President 64

Bud Copley Vice President SAWD 2012

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Shauna Ruud accepted a $5000 SAWD College Scholarship. Shauna is seen here with her father, Brian Ruud, and Scott Hill with Jack Link’s Beef Jerky.

2011 SAWD College Scholarship Winners

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hanks to the support of The SAWD Education Fund and Annual Silent Auction, The Southern has been able to provide college scholarships for Southern member employees and their families.

The Southern was pleased to announce at the 2011 Southern Showcase and Annual Meeting the winners of the 2011 SAWD College Scholarships. This year the applicants were asked to write an essay on the topic, “If you, as a member of the “Social Networking Generation” could influence its future, what would you change in sites like Facebook and Twitter and their usage?”

We had 41 applicants in 2011, all with creative and very interesting essays. Choosing just three was not an easy task for the SAWD Scholarship jury! The three $5000 scholarships were won by Katharine Zolot who

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attends University of North Carolina Chapel Hill, whose father is Samuel Zolot with Lorillard Tobacco, Heather Flesher at the West Virginia U. School of Medicine, whose father is Jeff Flesher with Sledd Co., and Shauna Ruud from Northland College, whose father is Brian Ruud with Jack Link’s Beef Jerky. Daniel Muldrew who attends Mountwest Community and Technical College won the $2000 Technical School Scholarship. Daniel is also a Sledd Co. family member. We want to congratulate these scholarship winners!

The Southern will be announcing the 2012 winners at the Southern meeting in New Orleans this May/June. Best of luck to all who applied writing an essay on the topic “Should Tobacco Be Legal?”

(Read Shauna’s winning essay on page 67.)

SAWD 2012

A “Tweet” about Future Social Networking

By Shauna Ruud As our world becomes more connected, the use of social networking sites such as Twitter, MySpace, and Facebook has skyrocketed. Social network sites enable us to easily stay in touch with others, and share our interests. Social network users are able to share information with the entire world without even thinking of the potential consequences that could associated with a “post” or “tweet.” As a member of the “Social Networking Generation,” I believe that certain changes within the sites will help promote the future of social networking.

Improvements to security, networking capabilities, and advertising structure will insure a successful social networking future.

Personal security is a major concern for users of all social network sites. Every user’s need for privacy is different, therefore social network sites need to continually improve and adapt security settings to meet user needs. More often than not, an overall update to a social networking site, joining groups within a network, or accepting friends will require a review of a user’s security settings.

If an individual does not update their security settings after such an action, their personal information may be viewed by an entire group or everyone that is a network user. Another privacy concern that I have is the interaction between younger aged users when they are friends with older aged users. Older users do not always post the most appropriate material and for younger users to be exposed to that is not beneficial for them.

Therefore an application is needed that a parent could add to a child’s page. An application that would allow for additional parental controls or blocking of a certain text would be an asset to any social networking site.

While security is important to maintain a user’s privacy; networking is a great element that social networking sites provide. Networking allows users to find entertainment, restaurants, and attractions in any given area. It also allows users to network with other individuals within their profession. This gives them the ability to join forces in problem solving, best business practices, and employment opportunities. Additional search options on a user’s home page without the cumbersome advanced search would be a great improvement. At a SAWD 2012

minimum, the addition of a drop down for country or state, or a text box to enter data within “X” miles of a certain location.

These additional search options will limit the results to a practical number. If there were options in the users private profile to enter their interests whether it be education, employment, profession, or hobbies this may also increase search capabilities if, “behind the scenes,” this criteria would be included in any searches the user performs.

Networking allows access to social and professional resources that assist and connect the user with family, friends, and opportunities that may not have been available within their local area.

With networking availability to the users, the site needs to be able to maintain profitability by providing advertisements spaces. Advertising is an important revenue source for the site and an important source of information to the appropriate users.

A good example of this is for colleges to post advertisements for upcoming classes or seminars that are either popular with students or are in need of an enrollment increase. I believe advertisements should be customizable to the user’s interest. Users would only receive pertinent advertisements, and companies would reach a more well defined target audience.

For example, if a user does not like “Brand X,” they would be able to block ads from “Brand X.” In turn, “Brand X” would have more cost effective advertisements that reach a specific group instead of blanketing all users. The social network sites could track any browsing the user does to help determine the appropriate advertisements to offer. In addition, with the increase in the use of mobile devices and applications, social networking sites could profit by incorporating their advertisements space within the mobile applications.

Continual improvement to security, networking capabilities, and advertising are the key factors that will facilitate the future of social networking. With the rise in social networking sites, users need to be able to customize their profile and advertisement preferences. Users will need to take ownership for the content they are sharing, and whom they are sharing it with. Social Networking sites need to insure accountability for misuse, and work to develop new applications and media. The future for social networking sites is limitless, and the only constant will be change. n 67

Advertisers Directory A Special Thanks To All Listed Below Who Make Our Convention Magazine Possible!

Allison Wholesale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Jack Links Beef Jerky. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Altria. . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Front Cover

King Maker Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

American Snuff Company. . . . . . . . . . . . . Inside Back Cover

Long Wholesale Distributors . . . . . . . . . . . . . . . . . . . . . . . 24

Andalusia Distributing Co.. . . . . . . . . . . . . . . . . . . . . . . . . 65

Medina Foods / Goldrush Beef Jerky. . . . . . . . . . . . . . . . . . 11

Ashland Specialty Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Atlantic Dominion Distributors . . . . . . . . . . . . . . . . . . . . . 48 Bic Corporation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Burdette Beckmann. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 City Wholesale Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Merchant’s Grocery Company, Inc.. . . . . . . . . . . . . . . . . . . 26 National Tobacco Company . . . . . . . . . . . . . . . . . . . . . . . . 23 NATO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Nestlé. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 R. J. Reynolds Tobacco Company. . . . . . . . . . . . . . . . . . . . . 9

Commonwealth – Altadis . . . . . . . . . . . . . . . . . . . . . . . . 3, 19 Republic Tobacco . . . . . . . . . . . . . . . . . . . . . . . . . Back Cover Corso, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Creative Data Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Douglas Companies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 GSC Enterprises, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 H.T. Hackney Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Hardec’s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Santa Fe National Tobacco. . . . . . . . . . . . . . . . . . . . . . . . . . 37 Sledd Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Southco. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Standard Distributing Co.. . . . . . . . . . . . . . . . . . . . . . . . . . 51 Stephenson Wholesale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Hershey USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Stewart Candy Company. . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Home Folks Wholesale Co . . . . . . . . . . . . . . . . . . . . . . . . . 53

Swedish Match.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

J. F. Johnson, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Swisher International, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 15

J. T. Davenport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

U. S. Flue-Cured Tobacco Growers, Inc.. . . . . . . . . . . . . . . 12

68

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