2013 Southern Annual Meeting Magazine

SaWd 90th annUaL MeetinG & trade ShoW

June 11-14, 2013 / Savannah International Trade & Convention Center / Westin Savannah Harbor

Inside‌ 18 20 31 34 54

Wow Your Customers 2012 Award Winners Are High Turns Killing Your Profit?

Southern Showcase Schedule of Events The Leadership Factor

56 Officers and Directors Elected and Installed 60 New Orleans Convention Wrap-Up 67 Should Tobacco Be Legal?

68 Advertisers Directory

The Southern‌Home to 46% of all C-Stores in the USA

Best Wishes for a Successful Convention!

Welcome to Savannah!

Table of Contents Letter from the Governor of Georgia . . . . . . . . . . . . . . . . 2 Letter from the Mayor of Savannah . . . . . . . . . . . . . . . . . .4 Letter from the SAWD President . . . . . . . . . . . . . . . . . . . 6 Letter from the SLD President . . . . . . . . . . . . . . . . . . . . . 8 Hospitality Suite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 First Lady’s Social Invitation. . . . . . . . . . . . . . . . . . . . . . 12 Letter from the Executive Director . . . . . . . . . . . . . . . . . 14 Wow Your Customers . . . . . . . . . . . . . . . . . . . . . . . . 18-19 Award Winners 2012 . . . . . . . . . . . . . . . . . . . . . . . . 20-21 2013 Education Fund Contributors . . . . . . . . . . . . . . . . 22 New Exhibitor Spotlight. . . . . . . . . . . . . . . . . . . . . . . . . 26 16th Annual Silent Auction . . . . . . . . . . . . . . . . . . . . . . 28 A Note About Anti-Trust . . . . . . . . . . . . . . . . . . . . . . . . 30 Welcome New Members . . . . . . . . . . . . . . . . . . . . . . . . 30 Are High Turns Killing Your Profit?. . . . . . . . . . . . . . . .31 SLD Business Resource in Greensboro, NC . . . . . . . 32-33

SCHEDULE OF EVENTS . . . . . . . . . . . . . . . . 34-35 Council of Presidents . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 SAWD Executive Committee. . . . . . . . . . . . . . . . . . . . . 38 2013 SAWD State Directors . . . . . . . . . . . . . . . . . . 40, 42 2013 At-Large Directors . . . . . . . . . . . . . . . . . . . . . . . . . 44 2013 SAWD Board Broker Rep, SLD Rep, Legislative Liaison . . . . . . . . . . . . . . . . . . 44 Manufacturer Representatives . . . . . . . . . . . . . . . . . . . . . 46 2012 - 2013 SLD Officers & Directors . . . . . . . . . . . . . 50 The Leadership Factor . . . . . . . . . . . . . . . . . . . . . . . 54-55 2012 - 2013 Officers & Directors Elected and Installed. . . . . . . . . . . . . . . . . . . . . . 56-57 2012 New Orleans Convention Wrap-Up . . . . . . . . . 60-61 Mid-Year BOD Meeting in Punta Cana . . . . . . . . . . . . 63 2012 SAWD College Scholarship Winners. . . . . . . . . . . .66 Should Tobacco Be Legal?. . . . . . . . . . . . . . . . . . . . . . . .67 Advertisers Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

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SAWD 2013

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SAWD 2013

A Letter from the President

Greetings to all my friends in the SAWD! I must begin by telling you what a tremendous honor it is to have been chosen to serve as your Southern Association of Wholesale Distributors president for the next two years. I must also congratulate my predecessor, Ricky Jones who did an outstanding job of formulating strategies and meeting the objectives of our organization.

I’ll certainly be counting on him for his continued guidance and advice in carrying on the traditions and successes of the Southern.

As in any successful year, things have been quite busy in the Southern. The mid-year was held in one of my favorite destinations, Key West, Florida. It’s a fabulous place where you can get your work done and still have time for some fun in the warm, tropical sun. From there, it was off to our annual meeting in New Orleans, LA, a unique American city that has made a wonderful turnaround since Katrina and is definitely BACK! I attended the Southern Leadership Division event while I was there and I have to say that the people in the Southern sure know how to

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have a good time! Speaking of the SLD, a fantastic mid-year event was held in November at the Grandover Resort in Greensboro, NC. Our very busy agenda included tours of the American Snuff Company and the RJ Reynolds factory near Winston-Salem where we saw moist snuff and cigarettes being made. For an old cigarette and tobacco guy, it was a really cool thing to see!

What’s next? We’re headed back to Savannah, GA for our 2013 Annual Convention. I hope everyone is as excited as I am and that we have perfect attendance. It will mark the 90th anniversary of the Southern and we’re planning many special events in observance of this incredible milestone. DON’T MISS IT! The Southern Association is very special to me and truly close to my heart. It is a one of a kind organization that draws its strength from good people. As your new president, I’ll be counting on all of you for your help. Please don’t hesitate to contact me.

Dick Dunham SAWD 2013

We Welcome JT DAVENPORT to the Core-Mark Family!

Call our General Sales Managers today to discuss how we can help grow your business.

Atlanta Charles Lawton 4820 North Church Lane Smyrna GA 30080 (404) 792-2000

Kentucky Matt Ashley 1055 Salt River Road Leitchfield KY 42754 (270) 259-9341

Forrest City Ed Schwacke 3400 Commerce Road Forrest City AR 72335 (870) 633-2044

North Carolina (JT Davenport) Gary Dozier 1144 Broadway Road Sanford NC 27332 (919) 774-9444

Ft. Worth Chris Hughes 6401 Will Rogers Blvd., Suite 200 Fort Worth TX 76134 (817) 293-5558

Tampa Jason Nevin 9020 King Palm Dr. Tampa FL 33619 (813) 664-0474

It’s More Than “Just Distribution” At Core-Mark, we know that the industry is changing rapidly and it might be time for a fresh approach for your convenience store.

Whether your store is part of a national chain or a Mom and Pop store, Core-Mark offers each of its customer’s valuable customized solutions and services designed to help you meet your goals.

Core-Mark’s fill rate, on-time delivery, and promotional executions are out-standing which allows you to stay abreast of emerging product, category trends and pursue marketing strategies that drive sales and profits.

If you’re looking for something different, visit www.core-mark.com for a division nearest you —we’re here to talk.

www.core-mark.com SAWD 2013

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A Letter from the SLD President Welcome to the 90th Annual Meeting and Trade Show of the Southern Association of Wholesale Distributors in Savannah, GA. Ninety years of “The Southern� is certainly something to celebrate, and Savannah is a great place to do it.

The 2012 SLD Midyear Meeting held at the Grandover Resort in Greensboro, NC was a great meeting. There were several wholesale companies and manufacturers participating for the first time in Greensboro and their energy and participation made for a fantastic environment for sharing ideas and visions of the state and future of our industry. Thanks to our sponsors, our speakers, creative forums, and plant tours were a tremendous success. For anyone who missed touring Taylor Brothers and Tobaccoville, you really missed a wonderful opportunity to see how the product is made and get a better understanding of the perspectives of our tobacco manufacturing partners.

Our newest committees in the SLD, the Technology Committee and the Education Committee, are progressing well, and in Greensboro, we decided that we would start setting aside times for these committees to meet in person, while we are at each association meeting. This should lead to more discussion within the committees and some excellent recommendations coming out of those committees. We are still looking for committee members however, so if you have a passion or a talent for either of these topics, and would like to start participating in the discussion, please let a SLD board member know.

Lastly, I would like to place a strong emphasis on all business owners, decision makers and manufacturers that are participating in the SAWD, but not in the SLD, to consider getting involved or someone from your team involved. The members of the SLD are the future of all of our businesses. Think of the ideas that you have generated by coming to SAWD functions, think of the business plans that you have been able to create and sustain by something that you learned at a SAWD function, and lastly, think of all the friends and associates you have grown close to at SAWD functions. That is exactly what is happening at SLD functions, but if you aren’t sending your top people, then they are missing those opportunities and so is your business.

As we all know, time seems to move faster and faster, and as the end of my first year as SLD President comes to an end, I can certainly attest to that notion. Hopefully, we can continue our current momentum and continue the growth and add to the culture and camaraderie of the SAWD. Sincerely,

Donnie Childers

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SAWD 2013

For more information, contact Santa Fe Natural Tobacco Company at 1-800-982-7454.

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

Natural American SpiritŽ is a registered trademark of Santa Fe Natural Tobacco Co. Š SFNTC 2 2013

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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 Harbor Ballroom, Westin Savannah Harbor 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 2013

IncreaseYour Net. To accelerate growth in your c-store, you need to Score With Core – the top-45-performing SKUs from Hershey. It’s the best-of-the-best, proven c-store candy items – a balanced portfolio that drives higher category sales! To learn more – and earn more – talk to your Hershey Sales Executive today.

Proud to support the Southern Association of Warehouse Distributors.

Delivering Demand. Driving Growth.

ICONIC BRANDS I INNOVATION I INSIGHTS I RETAIL DEMAND

©2013 The Hershey Company

www.HersheysConvenience.com

First Lady’s Social First Lady Donna Dunham 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, June 13th from 10:00 am until 11:30 am 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.

Please check your onsite brochure for location.

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SAWD 2013

TM

From the Chief Executive Officer…

stories, captivating visuals, and heartracing accounts of life in the line of fire.

In the end, all business operations can be reduced to three words: people, product and profits. Unless you’ve got a good team, you can’t do much with the other two.

— Lee Iacocca

President Obama has proposed a .94 cent-a-pack increase on the federal excise tax on cigarettes. The Southern’s Legislative Liaison, Dave Riser will be on hand at the Industry Breakfast to talk about what is necessary to defeat this effort as well as to bring us updates on e-cigarette and state excise tax legislation being considered throughout our region.

T

he quote above is very fitting as the Southern gathers in Savannah to celebrate our 90th Anniversary. The Southern is a great team and we are all about people, product and profits.

The people on the Education, Convention, and Government Affairs Committees have been working hard to bring you products and content that will help you to increase your profitability.

We have a jam-packed trade show featuring a wide-variety of companies and products, most of which are offering show only deals that will — if taken advantage of — more than cover the cost of your trip. 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).

Our Thursday keynote session features Dennis Snow, a 20-year veteran of the Walt Disney company speaking on “Creating a World-Class Service Organization.” Dennis is also conducting one of the breakout sessions later that morning specifically designed for business leaders entitled “Leading Excellence.”

Ashley Gillihan with Alston & Bird returns to the Southern’s stage to provide an update on Health Care Reform and how it impacts your company and your employees.

The education breakout sessions wrap-up with a facilitated panel discussion exploring how members of the Southern are utilizing social media in their businesses.

Friday’s keynote speaker is Michael Durant, Master Pilot and inspiration for the movie Black Hawk Down, with a compelling and inspirational message on teamwork, leadership and change illustrated through awe-inspiring 14

Meetings with a Mission is a brand new Southern initiative designed to encourage connections between attendees and those in the community for the purpose of doing good. SAWD MWM is partnering with the Savannah Union Mission allowing us to step away from the hustle and bustle, roll-up our sleeves, and work for a couple of hours alongside one another for a worthy cause. Join us for a different kind of experience at the Southern on Wednesday afternoon.

The Westin features the ability to “walk out” to the course as the Golf Club at Savannah Harbor is not only the best course in the area…it is located on the Westin’s property.

Our “off campus” events include an optional tour to one of the best cooking schools in the region at the Mansion on Forsyth Park’s 700 Kitchen Cooking School, as well as a party at Tubby’s Tank House.

There will also be several “special touches” throughout the meeting to acknowledge 90 years of service to this industry.

Hope you can be there to celebrate, learn, buy, network, and socialize with us!

Sincerely,

Greg Martin Chief Executive Officer SAWD 2013

I T’S A B ATT L E O U T T HE R E.

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SWISHER.COM 800.874.9720

JACKSONVILLE , FL

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Wow Your Customers

3 Keys for Delivering Great Customer Service

by Dennis Snow The term “customer service” evokes different images in people’s minds. One image could be that of friendly, smiling, helpful employees who go out of their way to serve you. Or it could be the opposite – indifferent, unfriendly employees who can’t wait for you to leave or hang up the phone.

Most people can recall many examples of poor customer service. Whether it’s the help desk employee that puts you on hold for 20 minutes or the store cashier who engages in a personal conversation instead of ringing up your purchase, poor customer service can make people feel frustrated and vow never to do business with that company again.

On the other hand, great service feels like a gift. It makes us want to continue to do business with an organization over the long haul. And that alone is the secret to business success – retaining customers by providing great customer service. With so much competition out there, customer loyalty is the single most important attribute your business can have. You achieve loyalty by doing the “little things” that make customers want to deal with 18

you again and again and recommend you to their friends. The real difference is how a business makes their customers feel. If customers feel valued, most will remain loyal. If they feel under-valued, sooner or later they will defect to a competitor.

Several reasons exist for why customers defect from a company. The customer may move away, a competitor may lure them away, or they may leave because they are unhappy with the product. However, a recent study found that a whopping sixty-eight percent of customers who defect do so because of poor service.

That’s a sobering statistic. The study further noted how customers defined poor service: “an attitude of indifference on the part of employees.” So while bad service certainly causes customers to leave, indifferent service can be just as detrimental.

With every two out of three customers citing poor customer service as a reason for leaving, what can your company do to achieve customer loyalty? Assuming your products and prices are competitive, you need to focus on providing superior customer service in order to gain loyalty.

To do that, here are three simple steps to help you make sure your customers stay with your company.

1. Look through the “lens of the customer” No matter what industry you’re in, chances are that you interact with customers at some level. Realize that customers can be shoppers at a store, patrons at a bank, patients of a doctor, clients of a law firm, etc. Because customers have their choice of where to obtain goods or services, the business has to convince the customer that they truly care. An engaged, caring employee raises the customer’s confidence that the business is looking out for the customer’s interests. When that employee suggests a new product or service, the customer trusts that his or her best interest is at heart. On the flip side, if the customer senses a lack of caring, he/ she will question the motives behind any recommendations.

Every business has its jargon, so be careful to speak in a language that customers understand. Successful businesses speak the language of the customer, not the language of their own industry. Take, for example, the banking industry. Would a young couple buying their first house be looking through the same lens as a customer who buys and sells real estate for a SAWD 2013

living? Of course not. That young couple purchasing their first house is excited and nervous – that is the lens with which they are experiencing this purchase. Therefore, they need loan officers who are excited for them, who explain the terms in everyday language, and who provide information that will make their buying experience easier. A bank that shows that level of care is likely to earn that young couple’s ongoing business.

The same applies for customer complaints, which can be frustrating for customers and employees alike. As employees, we often can’t understand why a customer is making such a big deal about a particular issue. Didn’t the customer read the contract? (Probably not.) Doesn’t the customer understand that researching a problem takes time? (No, they don’t.)

Remember, it’s not the customer’s job to see through the business’s lens; it’s the business’s job to see through the customer’s lens and show an understanding of the customer’s frustration.

Next time you are working with a customer, stop and ask yourself: “Am I seeing this experience through the customer’s lens?”

2. When it comes to a company’s environment, recognize that ­“everything speaks” Imagine visiting a fine dining restaurant for a special occasion. You’ve been looking forward to the meal and you’ve heard good things about the restaurant. Then imagine noticing something crusty dried to your silverware and old lipstick marks on your water glass. Wouldn’t you begin worrying about the cleanliness and quality of everything else in the restaurant?

Everything speaks!

Now imagine a customer entering your place of business. She notices trash in the parking lot. When she enters the reception area, she sees delivery boxes stacked by the receptionist’s desk. She sees employees standing around eating and having personal conversations.

All of this detracts from your business’s image. Consciously or unconsciously, the customer’s antennae go up and makes them question, “Do I really want to spend my money here?”

SAWD 2013

Employees can do many things to create wows. Remembering a customer’s name is a huge wow, creating a feeling of family. Letting a customer know that another product may better meet their needs is another wow. Sending a goody basket with a handwritten note to that young couple who just took out their first mortgage is a wow. Some wows are small and some are large, but make no mistake about it — wows add up.

The “everything speaks” philosophy means that all employees understand that even the little things count. So pay attention to everything, including whether the physical environment is neat and clean, whether all necessary supplies are available, whether the employees are dressed appropriately, etc. Anything that sticks out as “wrong” becomes an intrusion on the customer experience. These intrusions add up and result in customer concern.

On the other hand, when customers sense an atmosphere of professionalism, care, and order, they feel a sense of confidence.

How many times have you seen employees in a business walk right by trash on the floor or a display that has been bumped out of alignment? Employees who understand that everything speaks will take a moment to pick up some wadded paper and straighten the display because they know that such behaviors have a direct impact on the customer experience.

Take a moment to think about your company’s environment. Since everything speaks, what are the details saying about your organization?

3. Create customer “wows” Small gestures can create customer wows. Consider the housekeepers working in the hotels at Walt Disney World. Housekeepers have a tough job.

Cleaning up after people on vacation is a challenge. Even in such a challenging job, Disney’s housekeepers will do little things that make guests say, “Wow.” For example, while spending a day in the Magic Kingdom children will often leave their stuffed Disney characters in their hotel room. Housekeepers have been known to position the characters with playing cards in their hands or tuck the characters into the children’s bed to create a moment of magic.

One of the most powerful ways to create wows is to share best practices with fellow employees. Hold a company meeting so employees can share things that they have done that dazzled customers. Just talking about these behaviors increases the likelihood that others will adopt some of the practices or create new ones of their own. It is also likely that some wows can become standard procedure, whether it’s a grocery store bakery handing out fresh-baked cookies to children, or salespeople escorting customers to a product rather than simply pointing.

Next time you’re helping a customer, ask yourself, “Will my behaviors make this customer say or think, ‘wow’?”

Take Action Now Excellent service is not about policy manuals. Excellent service is about excellent behaviors. When employees focus on excellent service, the results can be magical. Customers are happy, employees are happy, and shareholders are happy.

Everyone wins. The key is to make service excellence a habit. Encourage every employee to internalize the above steps so they become habits. When employees focus on these principles, your company will achieve the most powerful result of all – intense customer loyalty. ____________________ About the Author Dennis Snow, Keynote Speaker at the Southern Showcase, is a business author, speaker, and consultant who helps organizations develop world-class customer service. He is the author of two books, “Lessons From the Mouse: A Guide for Applying Disney World’s Secrets of Success to Your Organization, Your Career, and Your Life” (DC Press), and “Unleashing Excellence: The Complete Guide to Ultimate Customer Service.” (Wiley). Dennis can be reached at www.snowassociates.com, or at 407.294.1855.

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2012 AWARD WINNERS 2012 Liberty Award

SAWD sa 2012 Award Robin Ray with Atlantic Dominion Distributing accepts the 2012 SAWD Liberty Award from Ricky Jones with Andalusia Distributing Co.

Bennett Roberts with Matrix Brokerage received the 2012 SAWD Service Award. Shown with SAWD President Ricky Jones of Andalusia Distributing Co.

2012 SAWD Allied Products Rep of the Year Award

2012 SAWD Service Award

The 2012 SAWD Allied Products Representative of the Year Award was awarded to Steve Sandman with Republic Tobacco. Steve is shown with Jebb Maginnis with CDR, the 2010 winner.

2012 Lou Gordon Humanitarian Award

Anthony Garner with Imperial Tobacco accepts the 2012 Lorillard Lou Gordon Humanitarian Award from Lorillard’s Bob Klein.

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2012 SAWD Service Award

Chris Smythers with Merchants Grocery, the outgoing president of the SLD, was recognized for his last two years of service and his outstanding job of increasing membership and providing excellent education offerings to the SLD members. Chris accepts the award from SAWD President, Ricky Jones.

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2012 AWARD WINNERS 2012 Southern Leader of the Year Award

alutes our d Winners!

Barry Krebs with Kellogg’s was awarded the 2012 Southern Leader of the Year Award by SAWD SLD President, Chris Smythers with Merchants Grocery.

2012 Candy Representative of the Year Award

Dave Riser with R.J. Reynolds Tobacco received the 2012 SAWD Tobacco Representative of the Year Award from the 2012 winner, Clark Sturdivant of National Tobacco Co.

2012 Tobacco Rep of the Year Award

Michael Hughes with The Hershey Co. received the 2012 SAWD Candy Representative of the Year Award from the 2012 winner, David Johnson with Nestle USA.

Ricky Jones with Andalusia Distributing Co. was awarded the Hershey Leadership Award to thank him for his outstanding service and leadership as outgoing president of the Southern.

Michael Hughes with The Hershey Company presented Ricky with the award.

2012 Hershey Leadership Award

SAWD 2013

Congratulations to Butch Youmans with H.T. Hackney, recipient of the 2012 SAWD Career Achievement Award.

Jimmy Stewart with Stewart Distribution accepted Butch’s award for him.

2012 Career Achievement Award

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Education Fund Contributors 2013 A.G. Farais & Associstes

Grocery Supply Company

Nestlé USA

Allison Wholesale

Gummer Wholesale

Oberto Brands

Altria Sales & Distribution

H. T. Hackney Co.

PAF Associates

Amcon Distributing Company

Hardec’s

Penguin Ice

Andalusia Distributing

Home Folks Wholesale

Quik Trip Corp.

Ashland Specialty Company

Imperial Trading Company

R. J. Reynolds

Atlantic Dominion Dist.

Inter-Continental Cigar Corporation

Renfro Supply Co.

Axton Candy Co.

J.F. Johnson, Inc.

Republic Tobacco

Burdette Beckmann

J.L. Gaddy Wholesale

Sledd Co.

Burley Wholesale Inc.

J.T. Davenport & Sons

Smith Wholesale Co.

C&B Distributors

Jack Link’s Beef Jerky

Southco Distributing Company

Caldwell Wholesale

Jackson Wholesale Co.

Standard Distributing Co.

Capitol City Wholesale

Joshen Paper

Stephenson Wholesale

Charles C. Parks Co.

Kelloggs Keebler

Stewart Candy Manufacturing Co.

Church Point Wholesale

King III Solutions

Stewart Distribution Co.

Cigarette Sales

Lil’ Drug Store

Swedish Match of North America

City Wholesale Grocery

Long Distribution

Swisher International

Claude’s Candy Brokerage Co.

Lorillard Tobacco Company

The Corr-Williams Company

Coastal Wholesale Grocery

Lyons Specialty Co.

The Hershey Company

Commonwealth Altadis USA

M. R. Williams, Inc.

Thomas & Howard Company

Core-Mark, International

Management Science Associates

Thomas Williams & Associates

Corso, Inc.

Mars Chocolate

Trend Settah Inc.

Creative Data Research

Matrix Brokerage

Tri-Star Distributing

Dot Foods

McLane Company, Inc.

Turkey Creek Snacks

Douglas Companies

Medina Foods

U.S. Flue-Cured Tobacco Growers

Eby-Brown Company

Merchants Grocery Company

UniPro Foodservice, Inc.

Franklin Supply, Inc.

MOBISOFT

Venture Sales

Glidewell Distributing Company

National Tobacco Company

W.L. Petrey Wholesale

Golbon 22

SAWD 2013

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 Jonathan Crowe Ray Long, Jr. Sam E. Long, III Trey Long

Corinth Rusty Boone Colby Carmichiel 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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MERCHANTS GROCERY COMPANY, INC. A Company You Can Count On 800 Maddox Drive Culpeper,VA 22701 540-825-0786 Fax: 540-825-9016

Proudly Supports The Southern Association of Wholesale Distributors

Wholesale Distributors Since 1917

www.merchants-grocery.com

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)…

Chain Drug Marketing Association

LM Tobacco LLC

General Cigar Company

National Honey Almond

General Mills Half A Sandwich LLC Hero Water LLC Hunid Racks Tobacco

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R & G Enterprises – Clean Cig Twin Tiger USA Victory Electronic Cigarettes

International Vapor Group, Inc.

Wet Noses

KLN Enterprises

Worldwide Distribution SAWD 2013

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Representative items only

16th Annual

SILENT AUCTION to Benefit the Education Fund

The Southern’s Education Fund was established a number of 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 28

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.

SAWD 2013

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A Note About Anti-Trust…

As this meeting begins, we must remind you of certain 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:

Warren oil Co., inc.

Sky Speed distributors amcon distributing

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SAWD 2013

By Dan Kiefer For years, finding the most successful distributor was easy. All you had to do was look at the number of times each year they turned over their inventory.

The more their inventory turned, the less they were paying in carrying cost. The less they paid in carrying cost, the more profitably they could operate.

But during the 80’s, that began to change. As suppliers increased their minimum order requirements to reduce their shipping costs, it became increasingly difficult for distributors to enjoy the same level of turns they had always strived for and to which they had become accustomed. That certainly has not changed as we have moved into the 21st century.

To be clear, turns are definitely an important metric, but they are only one of many that your company should be concerned with. Only looking at turns is a bit like looking out the window, seeing the sun and assuming it will be a nice warm day. Meanwhile, the wind is blowing at 50 mph and the temperature is 18 degrees.

Does that mean it is harder to turn a profit since your turns have been dropping? Not necessarily. In fact, there are actually a few ways that decreasing turns may actually help you be more profitable! The key is finding those areas and taking advantage of them.

Here are 3 areas that could potentially mean a reduction in your turns, but an improvement in your bottom line:

Forward Buying The first and most obvious way where you can decrease your turns, yet improve profits relates to items and times where it makes sense to forward buy. Let’s assume you turn your inventory 12 times each year, or roughly once per month. That would mean that at any given time, you SAWD 2013

have about a one-month supply of inventory in your warehouse on any given item. If the supplier suddenly offered you a 25% discount on a few of their items, it may well make sense to buy some extra. It may take you 6 months to sell through that inventory. So you have effectively seen 2 turns on that 2 item for the year rather than the 12 turns you had been accustomed to. However, because you bought it at a discount and sell it at the same price, the difference goes directly to the bottom line.

Discount Brackets With the intent of reducing shipping costs, suppliers will often offer price discounts if their customers purchase a full truckload rather than half a truck. On the surface, this could be counterproductive to the distributor. By purchasing the full truckload from the supplier, you are effectively ensuring a reduction in your inventory turns.

That doesn’t necessarily mean it’s a bad idea, though. Just as with forward buys, in order to maximize profits, it’s important that a distributor constantly balance the opportunity for increased profit with the expense of carrying the extra inventory required to order the truckload.

Handling fees The reality is, every time a truck comes into your doors, it costs you money. There is a cost associated with handling inventory. If you can reduce the number of trucks that arrive at your doors every year, you may well reduce the amount of labor associated with receiving, unloading, and sorting. Over the course of a year, this saving can be tremendous.

To be a successful distributor today may require a change in your thought process. Simply focusing on turns no longer ensures you the success it once did. Instead, distributors need to approach their purchasing with a strategy that focuses on squeezing every bit of profit out of your inventory possible. Sometimes that means a reduction in your overall inventory, sometimes it doesn’t. ■ 31

SLD Meeting at The Grandover in Greensboro, NC

T

he beautiful Grandover Resort in Greensboro, NC, was the location for the 2012 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 “Inventory Replenishment: Who Knew It Could Be So Easy” lead by King Harrison III, President of King III Solutions. Russ Lombardo, President and Founder of PEAK Sales Consulting, spoke on the very current topic of “Customer Retention— the Key to Business Success.”

A highlight of the meeting was a field trip to Taylor Brothers Moist and SNUS Manufacturing facility and a tour

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of R.J. Reynolds Tobacco’s cigarette manufacturing facility. The attendees were also treated to a lunch at Deacon Grille located in the Wake Forest Stadium.

A big thanks to RJR and American Snuff Co. for their hospitality.

A creative roundtable discussion on “What Happens When Pigs Fly” 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.

Needless to say, a great time was had at by all!!

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

SAWD 2013

FOR MORE INFORMATION, CONTACT YOUR SWEDISH MATCH REPRESENTATIVE. 800-367-3677 customer.service@smna.com

©2013 SWEDISH MATCH NORTH AMERICA, INC.

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SAWD 90th Annual Meeting and For Members Only.

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.

TUESDAY, June 11 2:00 PM - 5:30 PM Registration Desk Open 2:30 PM - 3:30 PM Chair/Vice Chair Meeting 3:30 PM - 4:30 PM Committee Meetings 4:30 PM - 5:30 PM Finance & Budget Committee 5:30 PM – 6:30 PM Executive Committee Meeting 7:00 PM – 9:30 PM Chairman’s Reception & Dinner

Elizabeth on 37th For members of the Board of Directors and Past Presidents.

WEDNESDAY, June 12 8:00 AM Start Time for Golf Tournament The Golf Club at Savannah Harbor www.theclubatsavannahharbor.com See insert for registration form.

9:00 AM - 5:00 PM Registration Desk Open 11:00 AM - 3:00 PM Optional Tour and Luncheon “700 Cooking School” Whether considered a Chef or a cooking novice, the engaging cooking classes at Mansion on Forsyth Park’s 700 Kitchen Cooking School are a culinary experience perfect for everyone to enjoy. Chef Darin Sehnert,

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culinary director, will oversee an interactive class in a stateof-the-art, full size kitchen with in-depth discussion and explanation of culinary technique and simple tricks that make cooking a very approachable form of art. You will be invited to assist in the preparation and will also enjoy a generous sampling of the menu at the conclusion of the class. TripAdvisor users consistently rate the 700 Kitchen Cooking School the top attraction in Savannah.

2:00 PM – 4:00 PM SAWD Meetings With a Mission Meetings with a Mission is a brand new Southern initiative designed to encourage connections between attendees and those in the community for the purpose of doing good. SAWD MWM is partnering with the Savannah Union Mission in a half-day of service, allowing us to step away from the hustle and bustle, roll-up our sleeves, and work alongside one another for a worthy cause. Join us for a different kind of experience at the Southern’s 90th Anniversary & Trade Show.

4:00 PM – 5:00 PM SAWD Board of Directors’ Meeting 4:00 PM – 5:00 PM SLD Board Meeting 6:00 PM - 7:00 PM Welcome Reception All delegates invited 7:15 PM - 10:00 PM Southern Soirée Dinner and awards done “Southern style.”

Hospitality Suite - Open to All Delegates

THURSDAY, June 13 7:15 AM - 5:00 PM Registration Desk Open 7:00 AM - 8:30 AM Kick-Off Breakfast (Continental)

www.the-southern.org

7:30 AM - 8:45 AM General Session “Creating A World-Class Service Organization” Dennis Snow Snow & Associates, Inc. World-class customer service is not simply a matter of smiling employees who say ”please” and ”thank you.” Everything your customer sees, hears or touches impacts their experience. ”Everything speaks.” This program highlights how delivering worldclass service requires careful orchestration of the entire customer experience.

Attendees will discover: • The key points of contact that make or break the customer experience

• How to elevate the customer experience from ordinary to extraordinary • Customer service processes that make service excellence ”business as usual” Dennis Snow’s customer service abilities were honed over 20 years with the Walt Disney World Company. He is currently a full-time speaker, trainer, consultant and author and he is dedicated to help organizations achieve their goals in the areas of customer service, leadership and employee development. He has partnered with organizations such as American Express, ExxonMobil, Wachovia, AT&T, General Motors and Mitsubishi. Dennis is known for presenting practical solutions for complex issues that face organizations today.

9:00 AM – 12:20 PM Education Sessions 9:00 AM - 10:00 AM Session 1 “Leading Excellence” Dennis Snow Snow & Associates, Inc. Employees watch to see how committed we are as leaders and take their cue directly from us. As customer expectations are at an all-time high and business competition is fierce – exemplary leadership today is critical. This presentation helps today’s leaders step into their multi-faceted role as visionary, facilitator and idea champion.

SAWD 2013

Trade Show – Schedule of Events Attendees will discover: • The benefits of leadership that creates a culture of accountability among employees • How to build organizational commitment to a vision • Specific “walk the talk” leadership behaviors that reinforce organizational values 10:10 AM - 11:10 AM Session 2 “Health Care Reform & What it Means to Me in 2013 and Beyond?”

Ashley Gillihan, Esq. , Alston & Bird, LLP The Health Care Reform law is the most significant piece of health care related legislation since Medicare and most, if not all of you, have already felt its effects to one degree or another. In 2013 employers of all sizes who sponsor a health plan and health insurance carriers must begin paying additional fees.

2014 will bring additional rules and programs that will have the greatest impact of all on employers, including but not limited to the pay or play rules. Join Ashley Gillihan, Esq. as he helps you identify the tools needed to implement an effective, “health care reform action plan” that best meets the needs of you and your employees.

11:20 AM - 12:20 AM Session 3 “Social Media Southern-style” Facilitated Panel Discussion Manufacturers seeking innovative avenues to drive consumer behavior have had social media programs in place for some time. In the B2B world of wholesale distributors, however, the business case for investing in social media is not so clear. Yet, many wholesalers have begun to incorporate aspects of social media into their businesses successfully and with solid results, without significantly increasing their costs. Come and hear from manufacturer and wholesale members of the Southern how they are addressing and incorporating social media into their business operations and why it is important.

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

SAWD 2013

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 Delegates

FRIDAY, June 14 7:00 AM - Noon Registration Desk Open

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

7:00 AM - 8:30 AM Industry Breakfast (Continental) 7:15 AM - 7:30 AM General Membership Meeting 7:30 AM – 7:45 AM “Governmental Affairs Update” Dave Riser VP External Relations Trade Marketing R. J. Reynolds 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 “In the Company of Heroes” Michael Durant Master Pilot and Inspiration for the Movie Black Hawk Down Little did retired Chief Warrant Officer Four Michael J. Durant know when he entered the United States Army in 1979 that one day he would be the target of a Somali-fired grenade launcher, a prisoner of war, and the subject of an acclaimed book and major motion picture.

The story of Black Hawk Down is a tense one, and Durant, talks vividly about his experience as a soldier and as a hostage, and what it has taught him about being an American and a leader. An inspirational speaker, Durant illustrates the power of teamwork, leadership, and change through awe-inspiring stories, captivating visuals, and heart-racing accounts of life in the line of fire.

6:00 PM - 10:00 PM SLD Social “Party at Tubby’s Tank House!”

Join us for a very casual, but extremely fun evening at Tubby’s Tank House on the banks of Historic Thunderbolt! Thunderbolt is a shrimping town along the Intracoastal Waterway. We will sit on the famous Tubby’s Tank House porch, relax to a little good music and enjoy some of the best food that can be found in the area. Your ticket price includes transportation to and from Thunderbolt, a Low Country Boil dinner and drinks. = Ticket Required Pre-purchase your raffle tickets for a chance to win one of two $1,000 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. SAWD members have been sent tickets to pre-sell and tickets will be sold on-site as well.

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

Jimmy Stewart Stewart Distribution Waycross, GA 2008-2010

Bob Pierpoint

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

Dick Bray

Premier Beverage & Equipment Franklin, TN 1989 - 1990

Mark Davenport

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

Duane Schneider

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

Grady Smith

TVC Wholesale, Inc. Florence, AL 1988 - 1989

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Sherwin Herring

Southco Distributing Company Goldsboro, NC 2004-2006

Jack Cofer

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

John Head

Head Distributing Company Smyrna, GA 1986 - 1988

Steve Shing

Grocery Supply Co. Sulphur Springs, TX 2002-2004

Ken Caldwell

Caldwell Wholesale Tobacco Co. Shreveport, LA 1992 - 1994

A.C. May

Pelican Cigar Co. Lake Charles, LA 1985 - 1986

Mike Jones

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

Scott Fisher

Spartan Automatic Retailers Memphis, TN 1990 - 1992

John Green

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

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2013 SAWD Executive Committee

Dick Dunham

President Stephenson Wholesale Co. Durant, OK

Randy Emanuelson Vice President Sledd Co. Wheeling, WV

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Paula Glidewell

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

Ricky Jones

Board Chairman Andalusia Distributing Co., Inc. Andalusia, AL

Randy Long Vice President Long Wholesale Corinth, MS

Greg Martin

Chief Executive Officer SAWD Suwanee, GA

SAWD 2013

THE VISION FOR 40 AND BEYOND Our vision came into focus in 1973, when Bob Douglas started Douglas Companies. Bob started the company in Texarkana Arkansas with 4 employees at the same time the convenience store industry began to see exponential growth. Along our 40 year path we’ve made many good friends and have had the great fortune of working with the finest group of customers and vendors in the industry.

Also along our 40 year path, Douglas Companies has grown to meet the needs of it’s ever expanding customer base, led by Bob’s son Steve and daughter Susie. Through excellent working relationships, forged among a best in class employee group, to state of the art technology, to greatly expanded product offerings, Douglas Companies has grown to be one of the leading distributors in the Mid-South.

Many thanks to everyone who has helped make Douglas Companies a success over the last 40 years,and thank you for giving us the vision for the next 40!

Steve Douglas and Susie Douglas Munson

200 Exchange Avenue Conway, Arkansas 72032

Phone 866-329-6866 Fax 501-329-6191

www.douglascompanies.com SAWD 2013

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2013 SAWD State Directors

Nick Zaden

City Wholesale Grocery Birmingham, AL

Sam Stewart

Marty Howell H.T. Hackney Opp, AL

Douglas Companies Texarkana, AR

Steve Douglas

Nef Garcia McLane Temple, TX

Steward Distribution Waycross, GA

Home Folks Wholesale Augusta, GA

Don Childers

Anthony Gardner

Charlie Casper

Dan McIntyre

Keith Landen

Emile Cantrell

Liz Joachim

Jackson Wholesale Jackson, KY

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Franklin Supply Franklin, LA

LAG, Inc. Tucker, GA

Imperial Trading Elmwood, LA

Hardec’s Elizabethtown, KY

Corso, Inc. Biloxi, MS

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2013 SAWD State Directors

David Edwards

Corey Cooper

Lawson Williams

Stephenson Wholesale Durant, OK

M. R. Williams Henderson, NC

Coastal Wholesale Kinston, NC

Jeff Leischner

Bill Wilkerson

J. L. Gaddy Wholesale Hickory Grove, SC

Thomas & Howard Co. Columbia, SC

Scott McPherson Core-Mark Fort Worth, TX

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Charlie Smith

Smith Wholesale Co., Inc. Johnson City, TN

Robin Ray

Atlantic Dominion Distributors Virginia Beach, VA

Jim Naifeh

Standard Distributing Co. Sapulpa, OK

Chad Pickel

Amcon Distributing.

Crossville, TN

Elvin Smythers

Merchants Grocery Co., Inc. Culpepper, VA

SAWD 2013

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 20, 2013, 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 2014!!

770-932-5810.

SAWD 2013

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2013 At-Large Directors

Nelson Parker

Allison Wholesale, Inc. Paint Rock, AL

George Naumann

Hugh Raetzsch

Renfro Supply Company Williamsburg, KY

Gordon Munden

Atlantic Dominion Distributors Hope Mills, NC

Lyons Specialty Port Allen, LA

James “Bucky�

Johnson

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

2013 SAWD Board Broker Rep, SLD Rep, Legislative Liaison

Bob Taylor, Sr.

Broker Representative Burdette Beckmann, Inc. Hollywood, FL

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Donnie Childers

SLD Representative Home Folks Wholesale Augusta, GA

Bennett Roberts

Broker Representative Matrix Brokerage Chapel Hill, NC

Dave Riser

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

SAWD 2013

www.stewartcandy.com

Manufacturer Representatives

Tony Barone

Altadis Commonwealth

April Drummond

Altria Sales & Distribution

Jebb Maginnis

Creative Data Research

Dot Foods

The Hershey Company

Jack Link’s Beef Jerky

Carter Adair

Tom Brice

Bob Klein

Clark Sturdivant

Dave Johnson

Steve Sandman

Mandi Clark

Lorillard Tobacco Company

Michael Hughes

National Tobacco

Victoria Person-Goral R. J. Reynolds Tobacco Co.

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Tony Clanton Swedish Match

Nestlé USA

Lil’ Drug Store

Republic Tobacco

Bill Dunn

Swisher International, Inc.

SAWD 2013

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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 2013

A Family Business Since 1926

Providing what you need, when you need it

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SLD 2012 – 2013 SLD Officers and Directors Officers Donnie Childers, Home Folks Wholesale, Augusta, GA, President April Garver, Southco Distributing, Goldsboro, NC, Vice President Barry Krebs, Keebler Company, Mableton, GA, Treasurer Jeff Eldridge, Lorillard Tobacco Company, Jacksonville, FL, Secretary Chris Smythers, Merchants Grocery, Culpeper, VA, Board Chairman

Directors Chris Jones, Andalusia Distributing Co., Andalusia, AL Marc Margolis, Creative Data Research, Ann Arbor, MI Marty Howell, H. T. Hackney, Opp, AL TBD, Imperial Trading, New Orleans, LA Leanne Wilkerson, J. L. Gaddy Wholesale, Hickory Grove, SC Mike Thorner, National Tobacco, Louisville, KY Chris Herbert, Philip Morris USA, Charlotte, NC Ron Leitner, R. J. Reynolds Tobacco, Winston-Salem, NC Jake Stewart, Stewart Distribution, Waycross, GA Maria Miro-Narlock, Spotlight Innovations, Brandon, MS Victor Blanco, Swisher, Ponte Vedra, FL Jere Loggins, Thomas & Howard, Columbia, SC Trey Williams, Thomas Williams & Assoc., Atlanta, GA

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Our focus is “Your Business” in the following markets: FL, N & S Carolina, VA, MD, TN, AL & GA Focused on C-Store Wholesalers and C-Store Retailers.

Max Weiner GM Convenience Channel Phone 954-241-8818 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 2013

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 2013

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Service Excellence

The Leadership Factor

We all know that customer service initiatives come and go, usually beginning with a lot of fanfare and ending with a quiet departure. With each occurrence of this pattern, an organization’s employees become more and more skeptical about subsequent service initiatives. When employees don’t see intense leadership commitment beyond the program’s rollout, they quickly understand that the initiative is another program of the month. The general feeling becomes; “wait it out, this too shall pass.”

cigarette butts off the ground. Imagine the impact this had on Disney cast members. Cast members were reminded that it is everyone’s job to keep the park clean. It also reinforced one of Disney World’s key values — attention to detail. If, however, Erin were to simply walk by a piece of trash on the ground and not pick it up, cast members would’ve quickly gotten the idea that “attention to detail” was simply a catch phrase, not a true value.

“The corporation can never be something we are not”

A clear example of walking the service talk is the There is no shortage of willingness to put service Max Dupree, Leadership is An Art vision statements, service support systems in place. strategy formation, and service Support systems demonstrate program rollouts. It is in the execution that you are prepared to back up the of these initiatives that organizations often talk with resources. Southwest Airlines, for come up short. The virtues of customer service have been example, is noted as a service leader. They constantly preach preached for years, but the results have been less than impresthe value of excellent service. They don’t just talk about it, sive. Why? The main reason is that most organizations want however. Southwest is the industry standard when it comes a “smile pill” that can be taken with little or no disruption to to flight turnaround time; twenty-minutes. If you watch the the current routine. In order to truly generate lasting service Southwest ground crew in action when a plane arrives, you’ll improvement, a top down commitment to changing processes, see that it is similar to a racecar pit crew. Everything is ready behaviors, measurements, etc. is needed. to go into motion as soon as the plane stops. It is clear that the leadership team doesn’t simply tell the staff to be efficient and To execute a vision or strategy effectively, leaders must be com- friendly. They put systems in place that enhance the ability of mitted in the long-term. Employees at all levels are watching their personnel to provide outstanding service. The message is to see how committed their leaders are. Clues to commitment a powerful one. Is it any wonder that Southwest Airlines has the to execution include; what does my manager spend most of lowest employee turnover in the industry? her/his time talking about? What do our meetings focus on?

What does my manager hold me accountable for? What gets 2. Keep the vision in front of the team rewarded and recognized? And probably most important of all, how well does my manager walk the talk when it comes to It is not enough to state the message of service excellence a providing excellent service? single time and expect that behaviors will magically change.

Research shows that repetition is the key to behavior change.

There are three key leadership behaviors that will demonstrate Use all of the communication vehicles available to you to stress commitment to executing a service improvement strategy: the importance of customer service. For example, make it your policy to start every meeting with a customer service item, 1. Walk the talk either a story, a problem/challenge facing the team, or a discussion of service measurement data. Employees will soon get Before employees take personal responsibility for creating an the idea that these discussions are part of the normal course of environment that demonstrates a commitment to excellence, business and will, over time, begin participating in the discusthey must see that their leadership team is committed. If, for sions. example, you expect employees to acknowledge customers promptly, it is vital that you do the same. If you expect employUse your internal newsletter (physical or electronic) to comees to pay attention to detail, then picking up a piece of trash municate your service commitment. More importantly, use off the floor as soon as you see it will speak volumes beyond the newsletter to tell stories of excellent service. Share specific anything you can put in a policy manual. stories of employee actions that result in excellent service. Send articles about customer service to the team with a note from A few years ago, an article appeared in the Orlando Sentinel you highlighting how the information pertains to your businewspaper highlighting then Vice President of Disney World’s ness. Ensure that all areas are displaying service measurement Magic Kingdom, Erin Wallace. Part of the story emphasized information in behind-the-scenes areas and that the inforthat whenever Erin walked the park she carried and used a mation is kept up to date. Nothing screams “program of the “nabbie grabber” which is a device Custodians use to pick up month” louder than data that hasn’t been changed for months.

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SAWD 2013

Most importantly, be creative about the communication mechanisms used for keeping the vision in front of the team.

I recently consulted with a hospital that has variety of mechanisms to remind staff members of the true meaning of their jobs. My favorite example is this: Whenever a baby is born in the hospital, the first 10-seconds of Brahms lullaby plays softly throughout the entire hospital’s sound system. This simple mechanism reminds staff members, in very difficult jobs, of the miracles happening in their workplace. They have found that patients often ask why the music is playing. When the staff member explains that a baby has just been born in the hospital, there is an emotional connection that takes place for the patient and the staff member.

3. Hold employees accountable for service excellence Leaders must ensure that accountability processes are built into any service improvement initiative. Look at your performance appraisal system. Do appraisals, for both management and frontline employees, emphasize specific customer service behaviors? How much is customer service emphasized in the appraisal? Is it a single rating point amongst thirty items, or is it clear that service is a priority?

It is vital that you become a customer service coach. Whenever you see opportunities for improvement for any employee, take the time to coach. If you do this consistently, word will spread faster than you can imagine. If, for example, you notice an employee displaying negative physical posture or using a bored tone of voice on the telephone, taking a moment to correct the behavior and stressing why it is important to present a welcoming image is more effective in changing behavior than any training program. The immediacy of the feedback is the key. Often leaders do not do this because they are concerned about offending the employee, or there is simply a reluctance to confront negative behavior. But holding employees (at all levels) accountable for service excellence is vital if you are serious about service improvement.

employee providing excellent service, take the time to reinforce the behavior through immediate recognition. Recognition can simply take the form of a positive comment, or something greater if appropriate. Again, immediacy is the key. Taking the time to immediately reinforce the behavior greatly increases the likelihood of the behavior being repeated.

Conclusion As a leader, you are looked upon as a role model of the organization’s commitment to customer service. Employees take their cue directly from you. They watch how you treat customers, listen to how you talk about customers, and observe what you demonstrate as important through how you spend your time. By walking the talk, keeping the vision constantly in front of employees, and holding everyone accountable for performance, service excellence will soon become part of the organization’s culture, creating a culture of service excellence.

About the Author: Dennis Snow, Keynote Speaker at the 2013 Southern Showcase, is the president of Snow & Associates, Inc. Dennis worked with the Walt Disney World Company for twenty years and now consults with organizations around the world, helping them achieve their customer service goals. He is the author two best-selling business books: “Unleashing Excellence — The Complete Guide to Ultimate Customer Service,” and, “Lessons From the Mouse — A Guide for Applying Disney World’s Secrets of Success to Your Organization, Your Career, and Your Life.” You can reach Dennis at (407) 294-1855 or visit his website at www.snowassociates.com.

Bringing ideas and growth.

Together.™

When I was a relatively new supervisor at Walt Disney World, I received a call to meet then Walt Disney World Vice President Bob Matheison at a specific location on Main Street USA. As I walked up to Bob, I saw that he was staring at one of the merchandise shops. I knew from his expression this was not going to be a pat on the back for a job well done. “What do you see?” he asked. I saw that a small pane of glass had been replaced, and that the installer had neglected to take the protective paper backing off of the glass. Although I did not install the glass, it was my job as supervisor to make sure that Main Street USA was “show ready” by the time the guests arrived. I missed this particular item. Bob’s simple act of holding me accountable for a small detail had a huge impact on the future of my attention to detail. I still make plenty of mistakes, of course, but I try very hard not to — I’ll always have that image of Bob in my mind!

Of course, the other side of the accountability coin is also important — recognition. The Gallup organization has conducted significant research regarding the reasons for employee “defection.” Gallup found that one of the main reasons for defection is a lack of recognition for good work. Whenever you observe an SAWD 2013

For more contact info, please visit www.generalmillsconvenience.com

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Officers & Directors EXECUTIVE COMMITTEE President VP/Compt.

Vice President Vice President Board Chairman

Dick Dunham Paula Glidewell Randy Long Randy Emanuelson Ricky Jones

Stephenson Wholesale Glidewell Distribution Long Wholesale Sledd Company Andalusia Distributing

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

DIRECTORS COMPANY Marty Howell H. T. Hackney Nick Zaden City Wholesale Steve Douglas Douglas Companies Nef Garcia McLane Sam Stewart Stewart Distribution Don Childers Home Folks Wholesale Anthony Garner Imperial Trading Charlie Casper Hardec’s Dan McIntyre Jackson Wholesale Keith Landen Franklin Supply Emile Cantrell Imperial Trading Liz Joachim Corso, Co. David Edwards Coastal Wholesale Lawson Williams M. R. Williams, Inc. Corey Cooper Stephenson Wholesale Jimmy Naifeh Standard Distributing Co. Bill Wilkerson J.L. Gaddy Jeff Leischner Thomas & Howard Co. Charlie Smith Smith Wholesale Chad Pickel Amcon Distributing Scott McPherson Core-Mark Robin Ray Atlantic Dominion Distributors Elvin Smythers Merchants Grocery Co., Inc.

AT-LARGE DIRECTORS NAME COMPANY Nelson Parker Allison Wholesale Atlantic Dominion Gordon Munden J.F. Johnson James “Bucky” Johnson Hugh Raetzsch Lyons Specialty Renfro Supply George Naumann

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

COMPANY BROKER/SLD Burdette Beckmann Broker Representative Matrix Brokerage Broker Representative Merchants Grocery SLD Representative R. J. Reynolds Legislative Liaison MANUFACTURER REPRESENTATIVES

NAME COMPANY April Drummond Altria Sales and Distribution Tony Barone Commonwealth Altadis Jebb Maginnis Creative Data Research Mandi Clark Dot Foods Carter Adair Jack Links Beef Jerky Tom Brice Lil’ Drug Store Products Bob Klein Lorillard Tobacco Clark Sturdivant National Tobacco David Johnson Nestlé USA Dave Riser R. J. Reynolds Tobacco Company Victoria Person-Goral R. J. Reynolds Tobacco Company Steve Sandman Republic Tobacco Tony Clanton Swedish Match Bill Dunn Swisher International, Inc. Michael Hughes The Hershey Company

COUNCIL OF PRESIDENTS NAME Jimmy Stewart 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 2013

YEAR(S) SERVED 2008-2010 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 Stewart Distribution 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 2013

SAWD 2013

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New Orleans Wrap-up 2012

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he Southern’s 2012 Annual Meeting and Trade Show was held at the Hilton New Orleans Riverside in New Orleans, LA. The meeting featured the 2nd largest trade show for convenience wholesalers in the country: Southern Showcase 2012.

In addition, attendees received outstanding industry-specific educational sessions, updates on industry and legislative issues and a host of networking opportunities including: golf at TPC Louisiana, awards dinners on Wednesday and 60

Thursday evenings, the Silent Auction that benefits the SAWD Education Fund, the Hospitality Suite with our very own Karaoke entertainment, a “Matisse on Magazine” optional outing and an evening out that included a party at Pat O’Brien’s!

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 2013

SAWD Education Fund

2012 Annual Meeting Sponsors Altria American Snuff Associated Distributors Burdette Beckmann Commonwealth Altadis Creative Data Research Dot Foods SAWD 2013

Jack Links Lil Drug Store Products Lorillard Tobacco Matrix Brokerage National Tobacco NestlĂŠ USA R J Reynolds

Republic Tobacco Smokey Mountain Chew Swedish Match Swisher International The Hershey Company World Kitchens

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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 62

SAWD 2013

Midyear Board of Directors Meeting

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Hard Rock Hotel & Casino

he Southern’s Midyear Meeting of the Board of Directors was held at the Hard Rock Resort & Casino, in the beautiful Punta Cana, Dominican Republic, on February 28 through March 2, 2013.

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 90th Anniversary, 2013 SAWD Annual Meeting in Savannah, Georgia, June 11–14, 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 SAWD 2013

report of committee activities will be made during the Annual Meeting in Savannah.

We would like to extend a sincere debt of gratitude to all of the members of the Board who were in attendance at this meeting. The Hard Rock Hotel & Casino was a wonderful venue to enjoy working, sharing, brainstorming and networking— managing to find time for some fun in that perfect Dominican weather!

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

2013 SAWD Midyear Sponsors Platinum Sponsors Altria Sales & Distribution

American Snuff Commonwealth Altadis Lorillard Tobacco R. J. Reynolds Tobacco Gold Sponsors Jack Link’s Beef Jerky Lil’ Drug Store Products National Tobacco Nestle USA Republic Tobacco Swedish Match Swisher International The Hershey Company Silver Sponsors Burdette Beckmann Creative Date Research Dot Foods Matrix Brokerage 63

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 Bud Copley President 64

Lisa Scott Vice President SAWD 2013

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From L to R is Sherri Walker (Mother), Jamie (sister), Jim Walker (Father, Receiving Supervisor at Long Distribution), Rachel Walker, Randy Long (President, Long Distribution, Corinth). Randy is presenting a $5,000 SAWD scholarship to Rachel, who will major in biology and run cross country for Blue Mountain College.

2012 SAWD College Scholarship Winners

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hanks to the support of the SAWD Education Fund and the 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 2012 Southern Showcase and Annual Meeting the winners of the 2012 SAWD College Scholarships. For 2012, the applicants were asked to write an essay on the topic, “Should Tobacco Be Legal?”

We had 24 applicants in 2012, all with creative and very interesting essays.

Choosing just three was not an easy task for the SAWD Scholarship jury!

The three $5,000 scholarships were won by Rachel Walker, who attends Blue Mountain College and whose father is Jim Walker with Long Distribution; Toni Brown at Franciscan University, the daughter of Wayne 66

Brown with Republic Tobacco; and Jeffrey Heylmun from Iowa State, whose father is Howie Heylmun with National Tobacco. Desmine Perry, who attends Advance Technology Institute, won the $2,000 Technical School Scholarship. Desmine is also a M.R. Williams family member. We want to congratulate these scholarship winners!

The Southern will be announcing the 2013 winners at the Southern meeting in Savannah, GA this June. Best of luck to all who applied writing an essay on the topic “Should the federal government start taxing candy, snack foods, and beverages based on their sugar and fat content to encourage people to eat healthier?”

L-R: Toni Brown and Jeffrey Heylmun SAWD 2013

By Toni Brown, SAWD $5,000 Scholarship Winner

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OBACCO IS A WAY OF LIFE. Whether you’re the tobacco harvester, an employee of the industry, or just a smoker, tobacco is universally accepted.

Though tobacco is believed to have been used for about 2,000 years in the Americas, tobacco, as we know it, was discovered in the New World in the late 15th century. Instantly, seeds of the plant were introduced in Europe where its popularity grew each time it was brought from the colonies. Tobacco became the colonies’ most valuable crop in its trade with England and other parts of the world. It was said to be as good as gold.

One of the most important commodities in world trade, tobacco became a significant part of the United States Economy.

Moreover, it became a significant part of life.

Today, 100 million people work in the tobacco industry. And today, as estimated 1.3 billion smokers exist in the world.

Tobacco is more than a plant traded around the world and bought by consumers everywhere, but a widespread pastime. In 2006, the United States government alone accumulated $14,974,713,000 in tobacco taxation. Denying people the right to smoke would be a loss in more than one aspect of society.

In America, we are raised with undeniable freedoms—freedoms of choice all over the place. Laws are typically based off the principle that we have the right to something so long as it doesn’t infringe on the rights of another. Over the years and as a result of increased concern about the hazards of smoking, many restrictions have been made on tobacco SAWD 2013

advertisements and smoking in public places. Health agencies around the world have issued warnings to the public that smoking is dangerous to health.

Having said this, what type of precedent would the law system set if it were to make tobacco illegal?

These restrictions and warnings about tobacco make it the responsibility of the consumer to understand the risks associated with tobacco usage and freely accept them if they so choose to use tobacco.

If people choose to use tobacco, they should be given accurate and unbiased information and warnings on the health effects. They must also be prepared to bear the full cost of tobacco use.

Outlawing tobacco could potentially lead to outlawing caffeine, tanning beds, junk food, and any other non-healthy or addictive entity on the market. Alcohol Prohibition wasn’t responded to well in the 1920s and serves as a perfect example for a society’s response to this type of legislation.

It’s all about basic rights.

Although tobacco may have the most serious of health concerns, overdoing any of these will lead to negative health. With freedoms and rights comes personal responsibility. Without responsibility, the consequences can be severe.

My father has worked in the tobacco industry for 32 years and is currently an employee of Republic Tobacco. Never in his career has someone frowned upon his work. Although not a smoker, he is a proud employee of the tobacco industry and its products, and believes in an individual’s freedom to choose. I believe in this freedom, too. Tobacco should remain legal. ■ 67

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

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

King Maker Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

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

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

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

Merchant’s Grocery Company, Inc.. . . . . . . . . . . . . . . . . . . 26

Ashland Specialty Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Atlantic Dominion Distributors . . . . . . . . . . . . . . . . . . . . . 48 Burdette Beckmann. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

National Tobacco Company . . . . . . . . . . . . . . . . . . . . . . . . 23 NATO. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

City Wholesale Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Nestlé. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Commonwealth – Altadis . . . . . . . . . . . . . . . . . . . . . . . 16, 17

R. J. Reynolds/American Snuff . . . . . . . . . Inside Back Cover

Core-Mark. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Republic Tobacco . . . . . . . . . . . . . . . . . . . . . . . . . Back Cover

Corso, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Santa Fe National Tobacco. . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Creative Data Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Douglas Companies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Sledd Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

GSC Enterprises, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Southco. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

General Mills Convenience. . . . . . . . . . . . . . . . . . . . . . . . . 55

Standard Distributing Co.. . . . . . . . . . . . . . . . . . . . . . . . . . 51

H.T. Hackney Co.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Hardec’s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Stephenson Wholesale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Stewart Candy Company. . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Hershey USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Home Folks Wholesale Co . . . . . . . . . . . . . . . . . . . . . . . . . 53 J. F. Johnson, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Jack Link’s Beef Jerky. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

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Swedish Match.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Swisher International, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 15 U. S. Flue-Cured Tobacco Growers, Inc.. . . . . . . . . . . . . . . 43

SAWD 2013