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A Penn Traffic Reorganizes Under Chapter 11; Stores Will Keep Operating
Pinnacle Brands Announces $1.3 Billion Purchase of Birds Eye Foods
Royal Ahold Announces Cost Reduction Plan Despite Volume Growth
Latest Word…
B Brigham’s Company Owned Restaurants Plan To File For Bankruptcy
Moobella Names National Sales Director, Prepares Launch of 100 N.E. Commercial Creameries
National Bureau Says Restaurant Jobs Dip In October
Latest Word….
C Getty Announces Restructuring Plan; More Growth For LUKEOIL
NACS Introduces Reduced Card Processing Program Rate
FDA To Examine Safety of Caffeinated Alcoholic Beverages
Latest Word…
D BJ’s Wholesale Club Settles Job Classification Claim
Maine Groups Unite To Launch Resuable Bag Campaign
Mass. Governor Visits New Greater Boston Food Bank
Latest Word…

 

 


Archive for Week of Nov 24, 2009

 

ASUPERMARKET NEWS

Penn Traffic Reorganizes Under Chapter 11; Stores Will Keep Operating

The Penn Traffic Company filed a voluntary Chapter 11 bankruptcy protection last week in n order to ensure sufficient liquidity to maintain ongoing operations in the face of current lender defaults. Greg Young, Penn Traffic president and chief executive officer said P&C, Quality and BiLo supermarkets will remain open for business to serve its customers and communitiesThe company will continue to manage its properties and operate as “debtors-in-possession” under the jurisdiction of the U.S. Bankruptcy Court.
Vendor partners, other creditors and other stakeholders may obtain additional information related to this announcement later today at www.donlinrecano.com/penntraffic.
The Penn Traffic Company, headquartered in Syracuse, N.Y., owns and operates supermarkets under the P&C, Quality and BiLo trade names in Upstate New York, Pennsylvania, Vermont and New Hampshire.

 

Pinnacle Brands Announces $1.3 Billion Purchase of Birds Eye Foods
Pinnacle Foods Group last week signed an agreement to acquire Birds Eye Foods from a holding company controlled by Vestar Capital Partners, Pro-Fac Cooperative, and Birds Eye management in a transaction valued at $1.3 billion.
Birds Eye Foods is a nationally recognized packaged food company with more than $930 million of total sales. The company’s major brands include: Birds Eye, Birds Eye Steamfresh, and Birds Eye Voila! as well as shelf-stable brands including Comstock and Wilderness pie fillings and toppings, Nalley and Brooks chili and chili ingredients, and snacks from Tim’s Cascade Snacks, Snyder of Berlin, and Husman..
Pinnacle Foods, owned by private equity funds controlled by The Blackstone Group. manufactures and distributes branded packaged foods The company’s diversified portfolio includes Duncan Hines baking mixes and frostings, Vlasic pickles, peppers and relish, Mrs. Butterworth's and Log Cabin syrups, Armour canned meats, Swanson and Hungry-Man frozen dinners and entrees, Van de Kamp's and Mrs. Paul's frozen seafood, Aunt Jemima frozen breakfast, Lender's bagels and Celeste
Brian Ratzan, managing director of Vestar Capital Partners, said “Pinnacle Foods is a great place for the Birds Eye Brand. It will have the resources of a larger food company platform as it expands its leadership position.”

 

Royal Ahold Announces Cost Reduction Plan Despite Volume Growth
Royal Ahold, the Netherlands, published a financial report last week which showed that overall sales were up 4.3 percent and there was volume growth in all Eureopean and U.S. markets. Still the retailer announced a $350 million cost reduction program in a three year plan ending in 2012. Ahold Chief Executive officer John Rishton said: "This program will focus on all aspects of our business, including store expenses, supply chain, and overhead across the group. Separately, we will deliver additional sourcing cost savings over the same period. He added that with the organizational changes announced on Nov. 5 "will build a strong platform for growth and provide even greater focus on our customers. We will pursue opportunities to grow within existing and new markets.”

 

Retail Latest Word…
Big Y Foods Is partnering with three Western Mass. gas station suppliers: F.L. Roberts, O’Connell Oil Associates and Pride for its fuel promotion program.

 

The Cleveland Food Dealers Annual Food Industry Awards and College Scholarship Banquet will be held at Executive Caterers and Landerhaven in Mayfield Heights, Ohio. For information, call Bob Lewis at 216-641-2444.

 

Giant Landover has appointed Shane Sampson to be its senior vice president of operations and sales.

 

The minimum wage will increase in Connecticut to $8.25 effective, Jan. 1. 2010.

 

The traditional Thanksgiving meal will cost four percent less in 2009 than in 2008. The American Farm Bureau Federation’s has estimated the average cost of a dinner for 10 people will be $42.91 a decrease of $1.70 from last year’s cost of $44.61.


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FOODSERVICE NEWS

Brigham’s Company Owned Restaurants Plan To File For Bankruptcy
Deal Metrics LLC of Maryland, a private equity firm which owns 13 Brigham’s Restaurants, intends to file for bankruptcy protection. The filing will not affect another 14 restaurants that are operated by independent licenses nor will the filing impact the manufacturing of Brigham’s ice cream, now owned by H.P. Hood.
In mid 2008, Brigham’s was sold off two buyers; Deal Metrics purchased 27 restaurants and H.P. Hood purchased the brand name, recipes, and the packaged ice cream business.
H.P. Hood announced late last week that the manufacture of Brigham's Ice Cream will be around for the holidays and long after.
"Recent news about financial difficulties of some of Brigham's restaurants has spurred an outpouring of consumer concern over the fate of Brigham's Ice Cream," said Lynne Bohan, spokesperson for HP Hood. "People should know that Brigham's Ice Cream will continue to be available in hundreds of supermarkets throughout New England, as well as in Brigham's restaurants and ice cream venues."
She said that HP Hood is committed to the ongoing production of Brigham's Ice Cream--which will continue to be manufactured using the same Brigham's proprietary recipes, under the same high quality standards that have made this brand a New England classic.
Since June of 2008, Hood has produced Brigham's Ice Cream for distribution in both supermarket and grocery stores, as well as in Brigham's restaurants.

Moobella Names National Sales Director, Prepares Launch of 100 N.E. Commercial Creameries
MooBella Inc. of Taunton, Mass., last week named Robert Beauregard as national sales director and also announced it will launch 100 commercial ice cream machines into the New England market in early 2010. Most recently Mr. Beauregard served as Key Business Development Manager, Southeast Region, for Van Houtte USA/Filterfresh, the nation’s leading provider of office coffee service.  
According to Bruce Ginsberg, MooBella’s president and CEO, “We are delighted to have Bob as the newest member of the MooBella team.  He has extensive background in every aspect of foodservice sales management, from training and operations, to marketing presentation preparation, to regional and national account development.  His impressive history in sales and established industry contacts make Bob the perfect fit for MooBella as we gear up for our upcoming regional roll out.”
Beauregard will be responsible for identifying prospective customers and working closely with MooBella’s New England Food Broker, Pinnacle Food Sales & Marketing.
With the MooBella Ice Creamery, consumers can choose from 96 possible combinations through a computer touch screen, and in three easy steps, make their own ice cream from a menu of two ice cream varieties, twelve flavors, and three mix-ins, The MooBella Ice Creamery has been designed to be extremely simple for customers to operate and is also very space efficient, at less than 10 square feet – about the size of a household refrigerator.

National Bureau Says Restaurant Jobs Dip In October
The restaurant industry lost jobs for the fourth consecutive month in October, according to the National Bureau of Labor Statistics. Eating and drinking places (which account for about three-fourths of the restaurant industry) lost 6,400 jobs in October on a seasonally adjusted basis. In the last four months, eating and drinking places lost 28,900 jobs, canceling the 28,500 jobs they added in the second quarter. Despite the declines, the restaurant industry performed better than the overall economy. In the 12 months ending in October, eating- and drinking-place employment declined 0.7 percent, while total U.S. employment fell 4 percent.

Food Service Latest Word…
The national franchise association representing Burger King recently filed a suit against the parent company over the chain’s $1 double cheeseburger promotion. The association claims the promotion is hurting profits and the parent company does not have the authority to dictate maximum prices. The sandwich usually sells for between $1.89 and $2.39 based on the market.

The Rhode Island Hospitality Assn. will have its Stars of the Industry Annual Meeting on Wednesday, Dec. 2 at the Crowne Plaza Hotel at the Crossing. Exhibits will begin at 4:00 p.m. followed by dinner and awards at 5:00 p.m.

The Int’l Restaurant and Foodservice Show of New York will be held Feb. 28-March 2 at the Jacob Javits Convention Center. Cher Kevin Cottle who has appeared on Hell’s Kitchen and now executive chef at the Country Club of Farmington, Conn., will give the keynote address, “Local and Sustainable Seafood: Why It Makes Sense” at the 2010 Int’l Boston Seafood Show on Sunday, March 14.

 

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CC-STORE NEWS

Getty Announces Restructuring Plan; More Growth For LUKEOIL
Getty Petroleum Marketing Inc. of E. Meadow, N.Y announced on Nov. 16 a new restructuring plan.  Last week Getty completed the sale of 164 branded service station properties, contracts to supply approximately 339 other stations and other assets, including its home heating oil and propane gas company to LUKOIL North America (LNA) for $195.5 million dollars.  Getty is using the sale proceeds to pay off parent guaranteed long-term borrowings.  Vadim Gluzman, chief executive officer of LukeNA, said, "LNA is expected to be the vehicle through which Lukoil will concentrate its future growth in the United States."  Getty also announced additional steps to manage costs including closing two marketing regions, eliminating 194 jobs an exiting the direct-supplied retail gasoline business. In September Getty sold assets and inventory related to its blending and supply to LUKOIL Pan Americas L.L.C. for $25.4 million dollars.

NACS Introduces Reduced Card Processing Program Rate
Last week the National Assn. of Convenience Stores (NACS) introduced a new credit card processing program that reduces credit card processing fees to 3.9 cents per transaction (after interchange) for member companies in the program. The NACS member-only Card Processing Program (CPP), developed with First Data, is designed specifically for small, unbranded retailers.
The NACS CPP was first introduced in 2005 with a rate of 6.5 cents per transaction, which led the industry at the time. This low rate also drove down processing rates across the industry. As rates continued to drop, so did the rates for the NACS CPP, and the new rate, introduced at the NACS Show last month in Las Vegas, is again the industry leader.
“The NACS CPP provides a money-saving price structure for all credit and debit transactions, easy implementation and training and one convenient statement that incorporates all card transactions,” said Doug Spenser , NACS Director of Products and Services.
The NACS CPP has no percentage rates, no fee-padding or hidden charges and can support stand-alone transactions. Accepted card types include Visa, MasterCard, American Express, Discover, Diner’s, Online Debit, Voyager and Wright Express. NACS members interested in learning more about the NACS CPP should contact Don Porter at First Data at (918) 641-4101 or don.porter@firstdata.com.

FDA To Examine Safety of Caffeinated Alcoholic Beverages
The Federal Food and Drug Administration has notified nearly 30 manufacturers of caffeinated alcoholic beverages that it intends to look into the safety and legality of their products.
In late September, the FDA received a letter from 18 Attorneys General and one city attorney expressing concerns about caffeinated alcoholic beverages.
"The increasing popularity of consumption of caffeinated alcoholic beverages by college students and reports of potential health and safety issues necessitates that we look seriously at the scientific evidence as soon as possible," said Dr. Joshua Sharfstein, principal deputy commissioner of food and drugs.
Under the federal act, a substance added intentionally to food (such as caffeine in alcoholic beverages) is deemed "unsafe" and is unlawful unless its particular use has been approved by FDA regulation. The FDA has alerted manufacturers that the agency is considering whether caffeine can lawfully be added to alcoholic beverages. To date, the FDA has only approved caffeine as an additive for use in soft drinks in concentrations of no greater than 200 parts per million. It has not approved caffeine for use at any level in alcoholic beverages. In the past year, Anheuser-Busch and Miller agreed to discontinue their popular caffeinated alcoholic beverages, Tilt and Bud Extra and Sparks, and agreed to not produce any caffeinated alcoholic beverages in the future.

C-Store Latest Word…
The Hershey Chocolate Co. is reviewing an option to make a bid for Cadbury PLC after Cadbury rejected an earlier offer from Kraft.

Convenience retailer Sheetz has launched a petition campaign, “Free My Beer”, urging Pennsylvania lawmakers to allow beer sales in convenience and grocery stores.

7-Eleven is marketing the debut of Warner Bros. Pictures Sherlock Holmes, ready to debut Dec. 25, with Holmes and Dr. Watson characters on in –store signage and phrases promoting value oriented offering such as quality fresh food and coffee. 7-Eleven also promoted Rita Bargerhuff to chief marketing officer.

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DNEW CHANNELS

BJ’s Wholesale Club Settles Job Classification Claim
BJ's Wholesale Club recorded an $11.7 million pre-tax charge in connection with settling a claim relating to the classification of various employees as exempt from overtime wages. Under the settlement, which still must be approved by the federal court, certain current and former mid-level managers will be eligible to receive payments to compensate them for hours worked in prior years.
"BJ's Wholesale Club values the role each team member plays in serving our Members and helping our Company succeed and grow," said Sue Hoffman, Senior Vice President and Chief Personnel Officer at BJ's Wholesale Club. "As such, it was important that we move quickly to address and resolve this matter."
The number of employees who will receive compensation and the amount of each settlement will not be known until the court proceeds with final approval of the settlement terms and all employee claims are submitted.

Maine Groups Unite To Launch Resuable Bag Campaign
A coalition of business leaders, grocery and retail associations, government officials, and environmental advocates will announce their campaign to encourage increased reusable bag use with the launch of Got Your Bags, Maine?
The campaign is a public education and outreach effort aimed at encouraging Mainers to increase the usage of reusable bags for shopping and decrease the use of single use paper and plastic bags. The goal of the group is to reduce the usage of paper and plastic single use checkout bags by 33 percent by 2012. The group of businesses include: the Maine Grocers Association, Maine Merchants Association, Hannaford Bros Supermarkets, Rite Aid, Wal-Mart, the Natural Resources Council of Maine, Maine Chamber of Commerce, representatives from the Maine State Planning Office and the Maine Department of Environmental Protection, as well as a growing number of Maine grocers and retailers.
 Shelley Doak, Executive Director, Maine Grocers Association, remarked, "Maine grocers and retailers recognize their leadership role in promoting the use of reusable bags and the responsible reuse of disposable check out bags.  We are proud to be part of this unique coalition that seeks to build upon the good work already underway.  We challenge Maine consumers to support the coalition's goal by reusing disposable check out bags, recycling plastic bags, and using reusable bags!"
 Complete information can be found at www.gotyourbagsmaine.com and the campaign can be followed on Twitter @GotYourBagsME.

Mass. Governor Visits New Greater Boston Food Bank
Massachusetts Governor Deval Patrick toured The Greater Boston Food Bank’s new Yawkey Distribution Center last week. During the visit he met with Catherine D’Amato, president and CEO of The Food Bank, helped the Twelfth Baptist Church food pantry staff load turkeys and produce into their truck, and sorted donated food with students from Year Up a school providing urban young adults with the skills, experience, and support. The Governor’s visited during one of the busiest weeks of the year for distributing food to people in need. The Food Bank’s goal is to distribute at least 38,000 turkeys before Thanksgiving.

New Channels Latest Word…
Earlier last week Costco Wholesale Corp. stopped restocking some Coca Cola products including water and energy drinks after a dispute over pricing.

Procter & Gamble plans to close a research facility in Needham, Mass., by mid 2012. Nearly 105 jobs will be transferred to other P&G facilities.

Kenneth Lefever, president of Wilton Aremtalek of Mt. Joy, Pa. was elected to the board of directors for the Int’l Housewares Assn.

CVS will reward members of the company’s ExtraCare loyalty program for declining plastic bags when making a purse. On every fourth scan, GreenBat Tag cardholders receive a $1 Extra Buck on the bottom of their receipt. The Extra Bucks can be used as discounts on other store items.

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